Annual Report 2015

Responsible supply chain

Posti has a Group-wide uniform sourcing policy that determines how the sourcing function and supplier cooperation is managed. The sourcing policy supports Posti’s strategy and environmental program, as well as the company’s social responsibility and ethical principles. It outlines decision-making responsibilities and responsibility boundaries, and it specifies the minimum requirements for suppliers and the sourcing organization.

As part of our approach to responsible sourcing, we have defined a Supplier Code of Conduct and require all of our service providers and suppliers to adhere to it. In addition to legality, the Supplier Code of Conduct includes principles related to corruption, human rights, child labor, discrimination, working conditions, and environmental concerns. Each approved supplier must have an agreement saved in Posti’s agreement archive and must have conducted a self-assessment.

In 2015, we harmonized our sourcing processes and systems in Finland and the Baltic countries, which supports the achievement of cost savings and facilitates the monitoring of compliance with the sourcing policy. We also launched a Compliance project in sourcing in late spring 2015 with the aim of ensuring that everyone in Posti Group complies with the common practices.

During the year, more than 90% of Posti’s sourcing in Finland originated from domestic suppliers. We also favored local suppliers in our other countries of operation. Of the suppliers approved during the year, 86% were within the scope of self-assessment, representing a combined purchasing volume of nearly EUR 470 million.

Sedex and EcoVadis – responsible sourcing networks

Posti belongs to the Supplier Ethical Data Exchange (Sedex) network as a service provider. We hold B membership of the network. With more than 30,000 members, Sedex is the largest collaborative platform for managing and sharing ethical supply chain data.

In addition to Sedex, we have joined in the EcoVadis system in the Supplier role. Through EcoVadis, we can provide our current or potential customers who have joined the system with information about responsibility and ethical issues related to our operations. As for our customers, they can use the EcoVadis system to assess our corporate responsibility and to manage responsibility information.

Posti was awarded gold-level recognition by EcoVadis for its CSR performance in 2015. With our score of 65 out of 100, we ranked among the top 5% of companies in all industries worldwide. EcoVadis assesses the overall CSR performance of suppliers annually in the areas of environmental responsibility, social responsibility, business ethics and sustainable procurement.

Business activities and human rights

Published in 2011, the UN principles concerning business activities and human rights have become a global standard that guides corporate responsibility in relation to human rights. The principles require companies to respect human rights in everything they do. Companies are obligated to assess the human rights impacts and risks of their operations, create systems to prevent risks, and develop processes for corrective action.

In spring 2016, Posti will participate in a series of training events organized by the Finnish corporate responsibility network FIBS, aimed at reviewing the practical implementation of the UN’s guiding principles in business operations.