WE REQUIRE RESPONSIBILITY FROM OUR ENTIRE SUPPLY CHAIN

L&T is a major national and local buyer of goods, materials and services. We strive for a safe, sustainable and cost-efficient supply chain that takes account of the entire life cycle of products and services. This is also what we want to offer to our customers.

A significant proportion of our purchases are from companies operating in Finland (2015: 95%) and the remainder is from other EU countries. 

In order to improve the responsibility of our supply chain, we systematically develop our own operations and continuously engage in clos​e cooperation with our suppliers. The goals for supply chain responsibility outlined in our corporate responsibility programme include developing the supplier assessment process as well as reducing the environmental impacts of production equipment and materials. Our steering group of corporate responsibility monitors the achievement of these goals and we report on it yearly in our annual report.

 
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​​​In the supply chain, responsibility and cost efficiency go hand in hand  

We require our entire supply chain to comply with legislation, contracts and collective agreements, as well as to satisfy our responsibility requirements with regard to environmental responsibility, our service providers’ supply chain responsibility, quality and occupational safety. Our centralised procurement organisation based on product and service categories ensures consistent procurement practices throughout the Group.   

In selecting suppliers, we emphasise the reliability of operations, ethical and environmental principles, product/service quality and cost efficiency, all of which must meet our strict standards. Cooperation with a new contract supplier can only begin after the supplier has completed a self-assessment survey, based on which we decide on starting cooperation and any further actions deemed necessary.

To prevent the grey economy, we require that suppliers who are covered by our obligations pursuant to the Act on the Contractor’s Obligations and Liability when Work is Contracted Out join the tilaajavastuu.fi service.  

Audits prevent risks 

The most significant risks pertaining to our service providers are related to financial aspects as well as employment relationship and occupational safety matters. In the case of partners that receive waste, the risks are related to compliance and the environmental safety of the suppliers’ own operations.  

We prevent risks by conducting regular supplier audits. The purpose of the audits is to determine whether the supplier meets our responsibility requirements. The selection of suppliers to be audited is based on pre-defined supplier groups, supplier self-assessments, or other observations related to our cooperation with them.