Telenor carries out local inspections in all our markets in order to monitor compliance with Telenor’s Supplier Conduct Principles. In 2019, 3,616 supplier inspections were carried out across all our business units, these ranged from on-site inspections at supplier premises and operational sites to supplier audits. 86% per cent of the inspections were carried out unannounced. These inspections resulted in the identification of more than 650 major non-conformities which have been followed up with mitigation plans and processes to monitor them until they are closed.
Joint Audit Cooperation
Telenor is an active participant in the Joint Audit Cooperation (JAC), a cooperation of 17 mobile operators focusing on the social, ethical and environmental conditions across their supply chains. Through our participation, Telenor gained access to the results of 104 sustainability audits of global suppliers in 2019. A standard JAC audit is often conducted over a couple of days and focuses mainly on preventive anti-corruption programmes, labour rights and working conditions as well as health, safety and the environment. These audits are often conducted over a couple of days.
After carrying out an audit, a Corrective Action Plan (CAP) listing all findings is agreed upon between the auditee and the auditor and followed up till closure. Over time, JAC has carried out 467 audits in 37 countries, covering close to 1.3 million workers. Currently 74% of all JAC audits are conducted on tier 2, tier 3 and tier 4 suppliers.
Actions for Risk mitigation
Monitoring our supply chain, and identifying and mitigating risks are key tasks for Telenor and ones in which we believe are best handled at a local level, with support from and reporting to Telenor Group. That is why each Telenor business unit has people working locally on a regular basis on supply chain sustainability.
We focus on the impact of our monitoring activities, rather than the activities themselves,as this gives a better assessment of improvements made through our efforts in raising standards in the supply chain.
In addition to inspections and audits, Telenor uses supplier self-assessments as an important part of the supply chain monitoring activity . These are carried out as part of procurement processes, an annual global process and also for ad-hoc supplier risk assessments.
EcoVadis risk rating
Furthermore, 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.