New suppliers of raw materials are subject to pre-qualification and risk assessment. Suppliers that fall into ‘high risk’ categories during the risk assessment are met with specific requirements included in their contracts. Risk-exposed suppliers are subject to detailed requirements from Elkem. Elkem also asks suppliers to influence their sub-contractors and suppliers to follow Elkem’s principles.
Elkem has developed detailed requirements for the health, safety and environmental standards of our suppliers of operations like mining, transportation, storage and loading, and is actively involved in the promotion and monitoring of safe and decent working conditions at its high-risk suppliers and contractors. This includes health and safety training and providing correct personal protection equipment for suppliers’ employees when necessary. Age control to prevent child labour and ensure responsible working conditions for young employees is also carried out. Elkem requires that suppliers and contractors engage their employees on fair terms, and that they give them information about, and the ability to organise and collectively bargain with management where this is legally possible.
Elkem’s requirements are regularly discussed in meetings with suppliers. High-risk suppliers must document their understanding of legal requirements and hazards in their operations and present plans showing how risk will be eliminated or controlled while working for Elkem. Elkem performs audits and inspections, both in connection with normal visits for sampling and as unannounced site visits. External auditors also conduct supplier audits on Elkem’s behalf.
Violations of Elkem’s requirements are registered, and addressed with verbal or written warnings and requests for improvements. Repeated violations lead to requirements for speedy implementation of improvement plans written by Elkem, financial penalties, or termination of contracts with immediate effect.
Sourcing of biocarbon is subject to special sustainability requirements. Elkem cooperates with NGOs and academia to secure good understanding of environmental, social and human rights challenges related to biocarbon production in different markets. Elkem requires that suppliers of biocarbon are committed to sustainable and ethical raw material sourcing in accordance with internationally accepted principles and standards (i.e. FSC – Forest Stewardship Council or PEFC – Pan European Forest Certification).
Biodiversity status is reviewed against International Union for Conservation of Nature (IUCN)/Convention on International Trade in Endangered Species of Wild fauna and flora (CITES).