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Supplier Due Diligence

About us
Procurement
Supplier Due Diligence

NKT works actively with close to 5,500 partners annually and even though our supplier base is predominantly pan-European, NKT is certainly aware of risks related to supplier compliance to legal and market requirements connected to health, safety, quality, financial stability, human rights, climate and environment.

NKT continuously develops the supplier due diligence to strengthen the process and adapt to legislation and business partner requirements. The due diligence is crucial in order to identify, mitigate and account for how to address for example adverse human rights and climate impacts. It is essential for NKT to increase the awareness around these adverse impacts among our direct suppliers as well as further down the supply chain (tier 2 and 3 suppliers).

We work actively with our suppliers to ensure that they live up to legal and market requirements connected to ESG. One material associated to adverse environmental and social impacts is copper, as a major user of copper, we have decided to become a partner of the Copper Mark. The Copper Mark is a way to ensure that the copper we use in our production lives up to certain standards. It offers a transparent and independent assurance process that verifies the supplier’s compliance with the Copper Mark's standards (e.g., based on UN Guiding Policy on Business and Human Rights).

NKT expects and requires business partners to fully comply and respect all applicable laws, statutes and international regulations including but not limited to human rights and climate. As a foundation all of our business partners accept NKT’s Business Code of Conduct and Human Rights Policy as a prerequisite to deliver their products and services to NKT. The Code of Conduct and Human Rights Policy specifies NKT’s requirements towards business partners related to, among others, ESG requirements.

NKT’s commitment stated in our Code of Conduct and Human Rights Policy is embedded in our Procurement policy and processes to meet responsibilities related to human rights and environmental and climate impact of our supply chain. Also Procurement policy and processes are continuously updated to meet developing legislation.

Compliance to NKT’s Code of Conduct

As a foundation for collaboration, suppliers are required to confirm compliance with NKT’s Code of Conduct and Human Rights Policy.

Supplier qualification process

As part of NKT’s supplier qualification process, suppliers complete a self-assessment questionnaire which incorporates parameters related to health, safety, quality, human rights, climate and environment.

Further material risk related requirements

REACH (Registration, Evaluation, Authorization and Restriction of Chemicals).

Responsible Mineral Initiative (RMI) and connected Conflict Mineral Reporting Template (CMRT) if materials supplied to NKT contain Tantalum, Tin Tungsten or Gold.

Compliance risk review

For the compliance risk review, a screening and monitoring tool is used to check suppliers against: sanction lists, watchlists and blacklists, politically exposed persons (PEP) and adverse media, etc. If a supplier non-compliance is detected, the scope of the cooperation must be reviewed and documented to the NKT Compliance function.

Financial stability

The financial stability of the supplier is evaluated.

Supplier information assurance

The supplier information assurance is done through an on-site supplier audit, prioritized based on suppliers strategic importance, risk and quality parameters.