Sustainability in the Scania Supply Chain Scania Standard

STD4427
STANDARD
Approved by
P
S
Issue
Info Class
Page
2016-12-13
4
Public
1(8)
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
Area specialist
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
Sustainability
in the Scania Supply Chain
Scania Standard STD4427 issue 4
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STD4427
STANDARD
Approved by
P
S
Issue
Info Class
Page
2016-12-13
4
Public
2(8)
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
Area specialist
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
Sustainability in the Scania Supply Chain
Content
Changes from previous issue...................................................................................... 2
Introduction ................................................................................................................. 2
1 Scope ................................................................................................................... 2
2 Scania’s sustainability values ............................................................................... 3
2.1 The Global Compact's ten principles .................................................................... 3
3 Requirements ....................................................................................................... 4
3.1 Environmental protection ...................................................................................... 4
3.2 Employee and human rights ................................................................................. 5
3.3 Transparent business relationships and anti-corruption ....................................... 6
3.4 Fair market behaviour ........................................................................................... 7
3.5 Due Diligence for Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas ........................................................................................ 7
4 Appurtenant documents........................................................................................ 8
5 Guidance documents ............................................................................................ 8
Changes from previous issue
Changes in section 3.1 Environmental protection.
Section 3.5 Due Diligence for Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas has been added.
The changes are shaded.
Introduction
This standard defines Scania’s requirements regarding the way suppliers act in their
corporate activities. The requirements are considered a basis for successful business
relations between Scania and its suppliers.
1
Scope
STD10073-1
The sustainability requirements stated in this document apply to all business relationships
between Scania and its suppliers.
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STD4427
STANDARD
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2
Issue
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2016-12-13
4
Public
3(8)
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
Scania’s sustainability values
Sustainability is a key priority for Scania and Scania works to continuously improve the
sustainability performance throughout its value chain. Scania is committed to upholding the
United Nations Global Compact’s principles relating to human rights, labour practices,
environment and anti-corruption in our own operations as well as in the supply chain.
Accepting and complying with Scania’s social and environmental requirements, including the
principles of the Global Compact, is a prerequisite for doing business with Scania. The
supplier’s social policies and requirements must be communicated to their own suppliers and
sub-contractors. Suppliers shall also aim to contractually bind their suppliers to corresponding
environmental and social policies and requirements.
Scania requires suppliers to have, and transparently demonstrate, appropriate management
procedures and documentation to be compliant with Scania’s requirements, as set forth in
this document. Scania also requires continuous performance improvements. Scania may at
any time review and/or request supplier self-assessments and/or perform on site audits at the
Supplier’s locations, normally pre-announced.
No claims arising from these requirements may be made by third parties.
2.1 The Global Compact's ten principles
STD10073-1
Scania’s sustainability requirements are based on the Global Compact’s ten principles in the
areas of human rights, labour, the environment and anti-corruption, as well as generally
accepted norms of ethical business behaviour. Further deriving from e.g.:

The Universal Declaration of Human Rights

The International Labour Organisation’s Declaration on Fundamental Principles and
Rights at Work

The Rio Declaration on Environment and Development

The United Nations Convention Against Corruption
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STD4427
STANDARD
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Issue
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2016-12-13
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4(8)
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
Requirements
3.1 Environmental protection
Scania takes responsibility for continually improving the environmental performance of its
products and services as well as for reducing the use of natural resources, whilst taking
economic factors into account. Scania therefore requires its suppliers to comply with all
applicable environmental legislation and regulations in all countries in which they operate.
Reporting of Part Material Composition
For direct product-related (automotive) parts Scania requires transparency on the materials
and substances used in products supplied to Scania. Such transparency includes reporting to
IMDS (International Material Data System). MDS for indirect material (non-automotive, nonproduct related) parts as well as MDS for parts and spare parts used in truck bodies and
trailers shall only be reported on request. How to report and what needs to be reported to
IMDS is described in Scania standard STD4352 (Reporting of substances and material
composition of product-related parts to IMDS).
For chemical products used in, or in connection to, any article when there is a risk that Scania
staff can be exposed to it, Scania requires Safety Data Sheets according to the demands
communicated on the Scania Supplier portal (Supplying to Scania/Supplier Requirements).
Creation and application of environmental management systems
Environment-oriented management is one of the main objectives of Scania´s corporate
policy. Scania therefore requires all suppliers developing and/ or supplying production parts
and/or spare parts (service parts) to have an environmental management system such as
international standard ISO 14001 (or the EMAS directive of the European Union).
Active and precautionary approach to environmental challenges
Suppliers are required to have thorough knowledge about their own environmental
challenges.
Measurements and documentation of energy consumption, emissions to air, water and soil
and responsible use of water and other resources are required of Scania suppliers. Suppliers
shall continuously improve in these areas.
Development and diffusion of environmentally friendly technologies, avoidance of
damage to health and the environment
STD10073-1
The supplier shall take due care to keep negative impact, on the environment as well as
employees, to a minimum in all activities.
Efficient use of energy and raw materials, the minimisation of greenhouse gas emissions, the
use of renewable resources and the minimisation of damage to health and the environment
__________________________________________________________________________________________________________________________
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STD4427
STANDARD
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S
Issue
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2016-12-13
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Public
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Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
Area specialist
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
shall all be considered in the development, manufacture and use of products and in other
activities.
The supplier shall take measures to develop resource-efficient and clean technology.
Waste and recycling
Avoiding waste via recycling and re-using resources, as well as safe disposal of residual
waste, shall be taken into account during development, production and service life of
products, production processes and other activities and during the development and
execution of production processes and other activities.
Training employees
Employees shall be instructed and qualified in environmental protection according to their
duties, and encouraged to act accordingly.
3.2 Employee and human rights
For Scania, the observance of internationally recognised human rights forms the basis of all
business relations.
Scania and its suppliers have the responsibility to respect and support human rights
wherever they operate, in particular these regulations must be considered alongside local
law. It is the responsibility of the supplier to ensure that relevant rights are identified and
prioritized.
Scania requires all its suppliers to make sure that they are not complicit in human rights
abuses.
Freedom of association and collective bargaining
Scania requires its suppliers to abide by local law regarding freedom of association. Scania
also requires its suppliers to respect the basic right of employees to freely, voluntarily and
without interference establish and join, or not join, unions and employee representation of
their own choice and to bargain collectively.
Elimination of discrimination
Suppliers shall not practice any form of discrimination. Equal treatment and equal
opportunities irrespective of, for instance, ethnic origin, skin colour, gender, religion,
nationality, sexual orientation, social origin or political view shall be guaranteed insofar as
they are based on democratic principles and tolerance towards those of a different opinion.
Employees are chosen, employed and supported on the basis of their qualifications and
capabilities.
STD10073-1
Elimination of all forms of forced labour
Scania rejects the use of forced or compulsory labour. Work must be voluntary and
employees shall be free to leave upon reasonable notice.
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STD4427
STANDARD
Approved by
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S
Issue
Info Class
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2016-12-13
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Public
6(8)
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
Area specialist
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
Compensation and benefits
The compensation and benefits paid or received for a normal working week correspond at the
very least to the legally valid and guaranteed minimum. Applicable legal wages and other
legally mandated benefits and compensation must be paid in time and in a transparent way.
Working hours
Laws and regulations on maximum number of working hours and time off shall be respected.
No child labour
Scania does not accept child labour and it is necessary for suppliers to take all reasonable
measures to prevent and/or eliminate child labour taking place. The minimum age for
permission to work, according to national regulations, is observed. It must be ensured that
legally young workers are protected from performing work that can be hazardous or that
interfere with his or her schooling.
Occupational health and safety at working place
The supplier shall ensure good working conditions and take appropriate measures to ensure
health and safety at the workplace in compliance with the respective national standards for a
safe and hygienic working environment. Employees should be informed of health and safety
procedures.
3.3 Transparent business relationships and anti-corruption
Scania is committed to conducting business ethically and in accordance with the law and
requires the same of its suppliers. Relationships between Scania and its suppliers shall be
reasonable and transparent.
Against corruption in all its forms including bribery
Scania requires its suppliers to reject and prevent all forms of corruption, including what are
known as facilitation payments (payments to speed up the performance of routine tasks by
officials).
Scania will never pay any form of commission, kick-back on the contract value or any other
compensation, monetary or in any other form, to employees of a contracting or third party and
neither will other techniques, such as subcontracts, rebates, purchase orders, consulting
agreements or similar arrangements be utilized to channel payments to a contracting or third
party, other than compensation properly agreed. Scania requires the same from its suppliers.
Conflicts of interest
STD10073-1
Personal interests or relationships shall not influence Scania’s suppliers in decision making,
only objective criteria are observed.
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STD4427
STANDARD
Approved by
P
S
Issue
Info Class
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2016-12-13
4
Public
7(8)
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
Area specialist
CA
SPX
SPX
Date
UTMS
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
3.4 Fair market behaviour
Free competition
Scania requires its suppliers to comply with valid and applicable competition and antitrust
laws. In particular, suppliers will not conclude anti-competitive agreements with competitors,
suppliers, customers or other third parties and will not abuse a dominant market position.
Import and export controls
Scania’s suppliers shall comply with all valid and applicable laws when importing and
exporting goods and services.
Money laundering
Scania requires that suppliers only maintain business relationships with partners whose
integrity they rely on. Suppliers shall ensure that the relevant legal provisions regarding
money laundering are not violated.
3.5 Due Diligence for Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas
Scania expects its suppliers to avoid the direct or indirect use of minerals that are found to be
conflict-affected. Minerals are ranged as conflict-affected if non-state armed groups are
supported directly or indirectly through the extraction, transport, trade, handling or export of
those minerals.
Information regarding smelters or refiners for minerals such as tin, tantalum, tungsten and
gold used by suppliers or sub-suppliers has to be disclosed to Scania upon request.
For this purpose, Scania suggests that suppliers use the standardized Conflict Minerals
Reporting Template, provided by the conflict-free sourcing initiative (cfsi). By using the
information from cfsi (through Volkswagen Group), Scania will provide its suppliers, which
have a business relationship with conflict-affected smelters or refiners, with information on
conflict-free smelters or refiners.
Our suppliers shall exercise due diligence along their supply chain. This includes the
implementation of measures, which assure that the minerals used – particularly tantalum, tin,
tungsten and gold – do not directly or indirectly finance or benefit armed conflicts.
STD10073-1
These due diligence efforts are an extension of the above mentioned sustainability criteria
regarding environmental protection, employees rights, transparent business relationships,
and fair market behaviour, which are an integral part when performing due diligence in
mineral supply chains.
__________________________________________________________________________________________________________________________
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STD4427
STANDARD
Approved by
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8(8)
UTMS
Area specialist
4
Issue
2016-12-13
Head of Corporate Standards
Henrik Henriksson
Anders Williamsson
CA
SPX
SPX
Date
Lina Orbéus
Standardisation engineer (contact person)
Andreas Follér
Helena Delteus
Erik Nellström
UTMS
Michaela Bundschuh
Appurtenant documents
The documents listed below supplement this standard and are necessary for the application
of the standard.
The latest issue of the document applies when the issue has not been stated.
Document
designation
STD4352
Issue
–
ISO 14001
–
The UN Global Compact
–
5
Title /
Reporting of substances and material composition of productrelated parts to IMDS
Environmental management systems -- Requirements with
guidance for use
The Ten Principles of the UN Global Compact
https://www.unglobalcompact.org/what-is-gc/mission/principles
Guidance documents
Document designation
The OECD Guidelines for Multinational
Enterprises
The Guiding Principles of the European
Automotive Working Group on Supply Chain
Sustainability, facilitated by CSR Europe
STD10073-1
The Business Anti-Corruption Portal
Link
http://www.oecd.org/daf/inv/mne/
http://www.csreurope.org/worlds-largest-automakers-reachunprecedented-agreement-responsibility-expectationssuppliers
http://www.business-anti-corruption.com/
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