Supplier evaluation

Ensto requires that suppliers' operations are performed in a manner that is appropriate, as it applies to their ethical, legal, environmental, and social responsibilities. We select our major suppliers and subcontractors on their ability to meet our Ethical Principles which are based on Ensto's values and the principles of the UN Declaration of Human Rights, the UN Rights of the Child and the Declaration of the United Nations International Labor Organization.

We evaluate our potential new suppliers in accordance with the suppliers’ approval process and our current major suppliers on criteria of quality, operational efficiency, cost, occupational health & safety, social and environmental responsibility. In addition, human rights related criteria, anti-corruption principles and labor principles are important part of the evaluation process.

We are using supplier scorecard method for supplier evaluation. It is based on the quality performance of suppliers’ products and services. The most important criterion are among others account delivery accuracy, quality, lead time and payment terms. If the supplier is not fulfilling the set criteria, the supplier will be audited or other development actions will be agreed with the supplier in order to ensure the fulfillment of the criteria.

The principles of no forced or compulsory labor and no child labor are included in Ensto Supplier Code of Conduct. In 2017 we conducted 46 supplier audits and visits. No non-compliance cases were reported during these audits and visits.