Our suppliers are key to us

Governing the social and environmental risks in our supply chain is our responsibility. Reducing negative impacts is pivotal to our integrity as a company. We have a direct impact through our choice of suppliers, raw materials, and marketing of our products, and thus the ability to enhance demand for sustainable products. We view this as a business opportunity but also a great responsibility. Our goal is for consumers to trust and prefer our brands being better for the consumers, for the environment and for people in our supply chains. 

Governance of the risk management in the supply chain is a cooperation between the supply chain managers, the Head of Sustainability and the Head of Quality Assurance. The work is to follow this structure:

Due diligence of new suppliers

An initial screening of food suppliers is carried out by the supply managers. New suppliers were screened on social and environmental criteria in 2021. Suppliers who pass the screening criteria are then asked to fill out and sign the suppliers’ questionnaire regarding social, environmental, governance and quality issues before being audited. Head of Quality subsequently evaluates the suppliers and determines the next steps based on the audit results.

Risk assessment and existing suppliers

Scandza has a risk-based approach to the management of environmental and social issues related to our existing suppliers. All our existing suppliers of food ingredients and food products have signed our supplier standards, and risk assessments are continuously carried out. Based on questionnaires and existing information about the suppliers, we add publicly accessible information about country risk, product risk, and industry risk to get an improved risk assessment as a basis for prioritisation of our work. 

Where suppliers are prioritized due to potential or real risk, we initiate conversations about the risk and how to reduce it. Depending on the outcome of the dialogue, we either agree with the supplier on a corrective action plan, a follow up on the supplier’s already existing corrective action plan, or an audit. The result of the audit could then lead to a corrective action plan or a follow-up of the supplier’s own initiated work. If the supplier does not want to reduce risk, we will end the collaboration. 

Carrying out audits has been difficult in 2021 due to the pandemic. For new suppliers we have carried out digital audits, but larger audits have been partly undertaken or postponed. Four suppliers were audited due to possible risks related to animal welfare or quality. No supplier relationships were terminated due to the risk of or real breaches related to the environment or social conditions.

Scandza expects full compliance from all our business partners regarding anti-corruption, health and safety, labour and human rights, and environment, as detailed in our CSR policy and our Suppliers’ standard. 

Enhancing our work with our supply chain will be a main priority going forward. In 2022 we are increasing our work on social and environmental risk assessments and mitigating action plans.  Our governing documents and procedures will be updated accordingly.