Inspections and Risk Mitigation

Telenor carries out local inspections in all our markets in order to monitor compliance with the requirements on responsible business conduct. In 2017, Telenor carried out approximately 5,000 supplier inspections (ranging from simple site visits to more comprehensive inspections or audits) across the Group. 84 per cent of the inspections were carried out unannounced. More than 560 major non- conformities were identified during the inspections across the business units and have been followed up with mitigation plans and processes aiming to close these non-conformities.

In 2017, Telenor transferred to a new reporting tool platform. We have started using DNV GL’s Synergi Life as a common reporting tool for all local supplier inspections with a focus on environment, health and safety. The Synergi Life tool enables all our business units to manage non-conformances, incidents, risk, risk analyses, audits, assessments and improvement suggestions.

Through participation in the Joint Audit  Cooperation (JAC) together with other  telecommunications operators (13 members in 2017), Telenor gained access  to the results of 89 sustainability audits  of global suppliers in 2017. A standard JAC audit focuses mainly on preventive anti-corruption programmes, labour rights and working conditions as well as health, safety and the environment.

Telenor performed six of these audits of global suppliers on behalf of JAC in 2017.

After carrying out an audit, a Corrective Action Plan (CAP) listing all findings is agreed upon between the auditee and the auditor. Over time, JAC has carried out 366 audits in 27 countries, covering more than 817,000 workers. Going forward, the number of yearly audits carried out by JAC will increase and the focus will mainly be on tier 2 and tier 3 suppliers.

Supply Chain Sustainability Risk Mitigation

Each Telenor company has people working locally on a regular basis on supply chain sustainability. Monitoring the supply chain, identifying and mitigating risks are key tasks and can best be done on local level with support from and reporting to Group.

Telenor is using EcoVadis as a risk-rating system for global suppliers to increase monitoring of the supplier’s sustainability performance. The EcoVadis platform is an external tool that measures a company’s performance based on a wide range of sustainability criteria and is a well recognised tool used by a high number of buyers across many industries, including the telecom industry. The purpose of using EcoVadis is to measure sustainability performance based on verified external information, reduce risk and integrate sustainability into the sourcing processes.

Telenor uses supplier self-assessments as an important part of the supply chain monitoring. These may be carried out as part of procurement processes or as ad-hoc supplier risk assessments by using a Supplier Assessment Questionnaire (SAQ). Telenor also carries out a global SAQ on an annual basis to assess the overall SCP risk picture in the supply chain and its development.

See key figures Supply Chain Sustainability

Joint Audit Cooperation

Telenor is an active member of Joint Audit Cooperation (JAC) together with other telecommunications operators (16 members in 2018).

The aim of the JAC is to verify, assess and promote sustainability standards and best practices across the supply chains of common suppliers to the ICT (Information and communications technology) industry. The JAC members focus on long term improvements in the different layers of the ICT Supply Chain, benefitting both suppliers and mobile operators.

The audits are based on a common verification, assessment and development methodology, including follow up of corrective actions. Each member has the responsibility, on behalf of the others, to carry out the audit processes at its own cost towards suppliers identified among the JAC members.

Various types of non-conformities have been reported especially on working hours, health and safety and wages, as well as few cases relating to discrimination and under age working. Corrective action plans have been defined and their implementation is regularly verified with the support of a third party auditor.

Through participation in the Joint Audit Cooperation (JAC) together with other telecommunications operators (13 members in 2017), Telenor gained access to the results of 89 sustainability audits of global suppliers in 2017. A standard JAC audit focuses mainly on preventive anti-corruption programmes, labour rights and working conditions as well as health, safety and the environment.

Telenor performed six of these audits of global suppliers on behalf of JAC in 2017.

After carrying out an audit, a Corrective Action Plan (CAP) listing all findings is agreed upon between the auditee and the auditor. Over time, JAC has carried out 366 audits in 27 countries, covering more than 817,000 workers. Going forward, the number of yearly audits carried out by JAC will increase and the focus will mainly be on tier 2 and tier 3 suppliers.

Visit the JAC website