Parallel Session 2'3 Ethical and Environmental Supply Chain Management Hydros approach to supply cha

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Parallel Session 2.3 Ethical and Environmental
Supply Chain ManagementHydros approach to
supply chain CSR management

• Arvid Halvorsen
• Norsk Hydro ASA

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CSR in Hydros procurement

• Customers are in strong position to influence CSR
  performance of their suppliers
• CSR requirements towards suppliers is just
  starting in the oil gas and aluminium
  industries
• Hydro cooperates with other oil companies for
  inclusion of CSR in the Achilles Joint
  Qualification System for suppliers
• In June 2006, Hydro introduced CSR requirements
  in its procurement of goods and services
• Implementation targets are defined by the size
  and number of contracts
• A Supplier Declaration is the essential element
  in the system

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Supplier Declaration topics

• Compliance with laws
• Improper payments
• Hospitality and expenses
• Conflict of interest
• Minimum age of labour
• Forced labour
• Freedom of association
• Right to collective bargaining
• Wages and working hours
• Employment practices
• Minority rights
• Environment
• Health and safety
• Selection of business partners
• Standards of own suppliers

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How it works

• CSR criteria used in pre-qualification of
  suppliers (main focus)
• Bidders evaluated on CSR criteria
• Suppliers to sign the Supplier Declaration
• Suppliers required to extend same requirements to
  sub-suppliers
• CSR requirements included in the contract
• Periodical reports required from suppliers
• Hydro may conduct audits

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