Sustainable Supply Chain

Materiality

Supply chains are a crucial part of the sustainability of products and services, and the Sampo Group companies emphasise sustainability factors when working with suppliers. Sustainability issues can carry significant reputational and operational risks if not managed correctly. The Sampo Group companies are major procurers of goods and services, especially in claims handling, and therefore have an impact on the economy, the environment, and people. 

Group-level approach

The Sampo Group Code of Conduct provides the group-level guidance principles regarding sustainable supply chain management. According to the Code of Conduct, the Group companies expect their suppliers and other business partners to comply with the principles of the Code of Conduct throughout their own operations and supply chains. Moreover, the Sampo Group companies should aim to take ESG considerations, including climate change, into account in supply chain management. In addition to the Code of Conduct, each Sampo Group company has its own supplementary policies and guidelines.  

The types of activities related to Sampo Group companies’ products and services that are carried out by suppliers include property, vehicle and content repairs, health and hospital services, and travel services. The Group companies also make purchases, such as external consultancy, office supplies, and IT equipment, to secure the companies’ own operations.  

The nature of the business relationships with suppliers varies with respect to the type of product or service purchased and can be long-term or short-term, contractual or non-contractual, project-based or event-based. The Sampo Group companies can, for example, offer networks of repair shops that have a long-term contractual relationship with the Group companies. On the other hand, certain suppliers, such as external consultants, are typically hired on a project basis and can be both long-term and short-term. 

The Sampo Group companies’ suppliers can have sector-specific characteristics, but they vary with respect to the type of product and service purchased. For example, re-building tends to be highly labour intensive and, content claims are capital intensive when items are replaced, but labour intensive if items are repaired.  

Group goals and ambitions

The Sampo Group companies aim to drive high standards across supply chains.

If

If is committed to encouraging and supporting the company’s suppliers and partners in their efforts to use more sustainable methods in their operations. By actively requesting innovative solutions, resource efficiency, transparency, and responsibility from suppliers, If aims to minimise its negative impact and stimulate sustainable production and consumption. Strict requirements, in combination with close cooperation with suppliers and partners, enable If to develop its business while also contributing to more sustainable development. If and its suppliers and business partners always strive to minimise the consumption of energy, water, and raw materials in operations, and to reuse and recycle as much as possible. Reducing material use often goes hand in hand with savings in both money and time.  

Supplier Code of Conduct

If has a Supplier Code of Conduct that defines the minimum requirements that If asks suppliers to comply with. The code covers the areas of human rights, labour rights, the environment including climate change, and anti-corruption, and it is based on the ten principles of the UN Global Compact and its underlying conventions and declarations. If’s claims handling contractors, such as vehicle or property repair contractors, are required to comply with If’s Supplier Code of Conduct. They must, for example, ensure the fair and equal treatment of all employees, take appropriate measures to protect privacy rights and secrecy, promote the development and use of environmentally friendly technologies, and compete in a fair and honest way. 

All employees who purchase products or services within the areas of office procurements, claims handling, and claims settlement must incorporate the Supplier Code of Conduct as part of the contract. This applies both to new agreements and to agreements that are to be renewed. The code applies to suppliers with whom If conducts business, including subsidiaries and sub-suppliers. It also applies to all the suppliers’ employees, whether permanent or temporary.  

If's Supplier Code of Conduct (www.if.se)

Sector-specific requirements

If’s property and vehicle repair contractors are not only required to comply with If’s Supplier Code of Conduct, but they must also comply with If’s sector-specific Additional Environmental Requirements (AER), which are incorporated into the purchasing agreements. The additional requirements cover transportation, energy usage, material usage, water usage, handling of chemicals and hazardous substances, and waste handling. If’s priority is to ensure that waste and materials from repair processes are managed in the best possible way, and If encourages its contractors to minimise their consumption of resources and materials, and to reuse and recycle as much as possible.  

Property repairs

In the Nordic countries, If cooperates with more than 1,200 property repair contractors, who perform the initial inspection and undertake repairs for claims that are reported to If. The AERs for property repair contractors include requirements to repair more, reduce material usage, demolish less, and increase remote work using video and sensors. They also include requirements for ordered material to be sent directly to the claim site to reduce transportation, use material with environmental certification when available, and increase the use of electric and hybrid vehicles.  

If has two mobile tools, In4mo and MEPS, to make it possible for contractors to digitally report and calculate property damage claims on site. These tools ensure an efficient and streamlined process for property damage claims handling at every stage, and enable all contractors to comply with If’s process requirements. The system also minimises travel and enables If to measure how much waste has been generated on site.

Vehicle repairs

In the Nordic countries, If has approximately 3,000 contractors that perform vehicle repairs. If cooperates closely with the contractors and conducts regular monitoring, by means of reporting and physical meetings, to ensure that they comply with If’s requirements. The AERs for vehicle repair contractors include a requirement to repair, instead of using new parts, and to reuse spare parts. If has also set expected levels of plastic repairs and used parts, and these are monitored and reported regularly.

Supplier risk assessments and audits

If has close cooperation with its suppliers, and the company performs regular monitoring, using reporting and physical meetings. If assesses all new and large existing suppliers and performs random checks to ensure compliance with If’s policies (e.g. Supplier Code of Conduct). If non-compliance is detected, a supplier audit is one possible action that can be taken. The first step to remediate non-compliance is to verify what has happened and investigate the reasons leading to it. Depending on the findings, corrective actions taken can be, for example, improvement of processes, correction of mistakes (e.g. errors in invoicing), or refunds. If the error or contract breach is major, it may result in termination of the contract. 

Employee training

If’s purchasing managers in claims handling, the heads of premises, and purchasers in If’s Group Services and the legal counsels receive training on the Supplier Code of Conduct. Purchasing managers in claims handling also receive training on the sector-specific requirements.

Topdanmark

Over 95 per cent of Topdanmark’s suppliers are located in Denmark, with the rest, mainly IT software suppliers, based across the globe. Topdanmark maps Tier 1 suppliers (direct suppliers) according to service/product category and expenditure. In certain contracts with additional legal precautions or regulations (e.g. outsourcing), Tier 2 suppliers handling personal data or similar have also been mapped.  

Topdanmark assesses suppliers against the UN Global Compact principles. Non-compliance with the principles of the UN Global Compact is not only incompatible with Topdanmark’s sustainability policy, but it could also damage the company’s reputation and consequently revenues. 

Topdanmark receives feedback from suppliers during tender processes and in contract negotiations (e.g. regarding the Supplier Code of Conduct). Topdanmark’s Supplier Code of Conduct also applies to third parties. 

Sustainability programme for suppliers

Topdanmark has a supply chain programme, which consists of the following: 

• Supplier Code of Conduct, which sets minimum requirements for suppliers who supply goods and services to Topdanmark via a contractual relationship, and which must be integrated into new contracts and renegotiated into existing ones.  
• Additional contractual requirements (e.g. reduction of GHG emissions, circular economy) for selected suppliers, where it is considered relevant based on an overall analysis.  
• An ESG focus group of suppliers drawn from several supplier categories. 
• Auditing of selected suppliers with specific contractual ESG requirements. 
• Steering procurement of office supplies (e.g. pens, paper, materials for fairs) to more sustainable options.  

Topdanmark's Code of Coduct for Suppliers (www.topdanmark.com)

Supplier risk assessments and audits 

Topdanmark has an ESG focus group of suppliers consisting of several supplier categories that have been selected based on criteria such as sector-specific ESG risks, geography, supply chain, market dynamics, expenditure, and size. For the suppliers in the focus group, Topdanmark performs an ESG screening consisting of a questionnaire. The questionnaire includes screening of environmental and human rights performance and labour practices. All suppliers are scored based on the responses to the questionnaire, and the score is communicated to the supplier. If necessary, Topdanmark can have a dialogue with the supplier. The ESG screening is integrated into the supplier selection process. 

Topdanmark has not identified any Tier 1 suppliers involving a particularly high risk of forced labour, modern slavery, or human trafficking. Risks could potentially exist on Tier 2 or Tier 3 levels (e.g. production of spare parts and electronics). Topdanmark does not have any direct relations with Tier 2 and 3 suppliers.     

Employee training

Topdanmark employees in purchasing departments receive guidelines from Topdanmark’s Sustainability unit on the Supplier Code of Conduct and ESG screening of suppliers. 

Hastings

Hastings works with its suppliers to highlight the importance of sustainability within the supply chain. By communicating the company’s values and principles to suppliers, Hastings’ intention is to align the supplier’s own sustainability strategies with those of Hastings to ensure that the company is able to provide the best service, products, and pricing to its customers. 

Supplier risk assessments and audits

Hastings conducts due diligence assessments on all suppliers in accordance with the company’s Procurement and Supplier Relationship Management Policy. Due diligence carried out on individual suppliers is proportionate to the size and potential impact on Hastings’ business operations. Sustainability is a key part of Hastings’ due diligence process. Critical suppliers are subject to ongoing reviews throughout the year, on a monthly and quarterly basis. 

Mandatum

Most of Mandatum’s suppliers provide services as Tier 1 suppliers, some of which rely on globally operating Tier 2 suppliers. Approximately 50 per cent of all procurements consist of acquiring ICT consultation services and licences. Other procurements include marketing, HR, legal consultation, and premises-related services. Approximately 30 per cent of the contracts are fixed-term contracts. Long-term relationships have been established with partners providing critical ICT services and financial services providers.  

Mandatum has outsourcing and procurement policies with which employees in charge of outsourcing and procurement must comply. Mandatum follows the regulatory requirements concerning supply chain management and updates the company policies accordingly. 

Supplier risk assessments and audits

Mandatum carries out an initial risk assessment and due diligence for all suppliers. In addition, prior to agreeing on cooperation, partners who are involved in business-critical activities undergo a thorough review process. As part of the review, different factors are considered, such as financial and solvency resilience, operational resilience and business continuity, legal risks (including sanction screening), compliance issues, data security, reputational risks, and conflicts of interests. All suppliers are requested to state their adherence to the principles of the Sampo Group Code of Conduct. 

In addition, Mandatum conducts supplier audits based on the initial risk assessment. The company uses both off-site and on-site audits. For the off-site audits, Mandatum uses questionnaires. The off-site audits may also include a review of documentation and interviews. The on-site audits include interviews, walkthroughs, and review of documentation.  

The audit frequency depends on the initial risk assessment and/or the results of the latest audit. If the results indicate deficiencies, the scope and depth of the audit can be expanded. Mandatum does not start collaboration if the supplier is deemed non-compliant. If a supplier is found to be non-compliant during collaboration, the supplier is given a chance to take corrective actions. If the faults are not corrected, Mandatum will replace the supplier.