Sustainability and ESG
In Kongsberg Defence & Aerospace we aspire a sustainable business practice, i.e., to strike a good balance between financial results, value creation, and our environment, social and governance (ESG) responsibility. The value created will benefit our owners, stakeholders, and society as a whole.
We set high standards for our business practices. Our supplier network consists of a large number of individual suppliers and their subcontractors (lower-tier subs). Consequently, it is important to us for this link in the value creation chain to meet the same or similarly high standards in terms of business practices and corporate social responsibility. In collaboration with our suppliers, Kongsberg Defence & Aerospace strives to ensure that operations are carried out in compliance with internationally recognized principles for business ethics and ESG.
It is a requirement that all of our procurements are performed in accordance with the principle of dualism (segregation of duties). Kongsberg Defence & Aerospace's procurement department is responsible for the establishment of all new supplier relationships and oversight of the supplier base.
When selecting suppliers, our assessment criteria include the suppliers' work with regards to human rights, workers' rights, health and safety, and anti-corruption initiatives, in addition to climate and environment. In order to gain in-depth knowledge of our supply chain risks, we perform land analysis and develop land profiles. To reduce operational risks, we regularly perform commercial evaluations and screening of suppliers. Through the use of self-assessment questionnaires and audits, we ensure that our suppliers apply appropriate programs (e.g., with regards to anti-bribery and corruption, health and safety).
Kongsberg Defence & Aerospace has established dedicated principles for supplier conduct, "KONGSBERG Supplier Conduct Principles", which are intended to ensure safe working conditions, that workers are treated with respect and dignity, and that business activities in the supply chain are sustainable and carried out in compliance with internationally recognized principles for business ethics. The principles apply to the entire supply chain, and all of our suppliers must confirm in writing that they accept the content of these principles.
Kongsberg Defence & Aerospace takes a partnership approach to suppliers in an effort to pursue these principles. We proactively seek continuous improvement on the part of suppliers within the areas covered by the principles. If suppliers fail to comply with the standards in the principles, our general policy is to encourage improvement and not terminate the contract.
Kongsberg Defence & Aerospace encourages rather than penalizes suppliers that identify activities that do not measure up to our standards (by themselves or in their own supply chain) and that agree to pursue improvements. We consider a similar ethical trading standard as a reasonable alternative.