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Sustainable procurement

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Why is this material? 

As a buyer of goods and services worldwide, DNV GL has an impact on the environment and employees of our suppliers. Our vision to have a global impact for a safe and sustainable future also implies that we should ensure that we have a positive impact not only through the services we deliver, but also through the goods and services we buy. 

The DNV GL Sustainability Materiality Matrix recognises that sustainable supply chain management is important to our stakeholders. Therefore, we extend our commitment to the Global Compact ten principles, in the areas of human rights, labour standards, environmental performance, and anti-corruption, to our relationship with suppliers, sub-contractors, contractors and agents. 

Project & Activities 

DNV GL communicates our sustainability expectations to suppliers, and will evaluate and monitor suppliers’ corporate sustainability behaviour and performance. Our Supplier Code of Conduct  outlines our expectations to suppliers, and is aligned with recognised international standards for supply chain management, including the ten UN Global Compact principles in the areas of human rights, labour standards, environmental performance and anti-corruption. 

According to the Group Purchasing Instruction , signing the Code is mandatory for suppliers with contracts above NOK 50.000 (part of the complete binding contract). Suppliers are also screened according to a standard screening checklist and if serious violations are found, they can be excluded from the DNV GL supplier registry. If exposure to risk is identified, local units will engage with the supplier to improve practices. 

In 2014, a major effort was launched to centralise procurement in DNV GL. Global procurement functions have been established, and a project was created to establish a more systematic approach to the management of sustainability risks and opportunities in the supply chain for DNV GL Group. The work is the result of cooperation between various group functions, including Global Procurement, Group Sustainability as well as Compliance and HSE.  Throughout 2014, the focus was on mapping current procurement practices in DNV GL against best practice for sustainable sourcing. Based on this exercise we have identified key strengths, improvement areas and recommended actions.  The recommendations were discussed with and approved by the Corporate Sustainability Board in November 2014.

Reporting on Performance

Our ambition
What we said we would do
Where we are today
What we plan to do next
Our ambition
To positively influence the sustainability performance of our partners in our value chain, and thereby to help spread responsible business practices around the world. 
What we said we would do
To implement a system in DNV GL for systematically assessing, monitoring and mitigating sustainability risks in our supply chain.
Where we are today
The assessment of current procurement practices was completed and recommendations presented to the Sustainability Board and CEO. 
What we plan to do next
Update key governance documents and embed new procedures in the management system. 
Our ambition
To this end, we aim to develop a global procurement system which enables us to effectively communicate our expectations to our suppliers world-wide.
What we said we would do
 
Where we are today
A plan for how to incorporate recommendations to strengthen sustainable procurement was established, to be executed in 2015. 
What we plan to do next
Implement the roll-out of the plan for new policies and procedures, including screening of suppliers’ performance on criteria set out in the Supplier Code of Conduct.
Our ambition
 
What we said we would do
 
Where we are today
Because the new procurement system is not yet in place, we were not able to monitor and report in a centralised way on how many suppliers were screened in 2014 according to the criteria in the Supplier Code of Conduct. Consequently, we are not able to report the impact of our supply chain for 2014.
What we plan to do next