Supplier risk management
Risk management system
Swisscom reviews and reclassifies product groups from the perspective of Corporate Responsibility. It decided to maintain the current risk structure and has completed a new critical revision of the list of suppliers in high-risk product groups. Of these, all of the major suppliers are already registered on the e-tasc platform from EcoVadis. For potential supply partners and invitations to tender, Swisscom continues to use the implemented process, which was revised in 2016. In addition, the new SRN (Supply Risk Network) platform will enable a first estimate of a supplier’s overall risk.
Risk management procedure in the supply chain
Swisscom does not assess the risk of all its supply partners. Instead, it uses a filtering process to determine their effective risk potential at an early stage, while at the same time reducing the number of supply partners to be assessed.
Filtering process: risk management procedure in the supply chain
In the second stage, Swisscom then identifies the supply partners whose goods have been assigned to the product groups with high- and medium-risk profiles. It reviews the risks of these supply partners individually using clearly defined criteria. Where deemed appropriate to avoid risks, the supply chain is integrated into risk monitoring. Goods belonging to a category with medium and high risks are also used by Swisscom to determine the risks of potential supply partners. The results of the assessment are then taken into account when deciding on a possible collaboration.
Overview and requirements of risk management in the supply chain
Swisscom itself was also subjected to a re-assessment in 2016, in which it improved and once again achieved the “Gold Level”.
Swisscom has been a member of the Joint Audit Cooperation (JAC) for several years. Swisscom carried out six audits in 2016 as part of its collaboration with the JAC. The JAC is a consortium of 13 telecoms companies which checks, assesses and promotes measures intended to safeguard social responsibility in the production centres of the major multinational ICT suppliers.See
- Preparation: Audits are based on information that must be obtained in advance via the company to be audited.
- Qualified auditors: Audits are carried out by international auditing companies that have specialist knowledge of the social and environmental conditions particular to the country in question.
- Confidentiality: Confidentiality agreements are signed with suppliers, so audit results are only known to JAC members.
- Methodology: The JAC members create a checklist based on the SA 8000 (including in relation to working conditions, health and safety, environment, business ethics, management system) and ISO 14001 standards. On-site audits with the relevant dialogue partners are also taken into account.
- Report: The report formulates the findings based on objective evidence.
- Collaboration with suppliers: The collaboration is based on the common understanding that the CR risk management system plays a key role in supporting responsible and sustainable development.
- Collaborating with and further developing suppliers: On the basis of the findings from the audit, corrective measures are drawn up with suppliers to correct shortcomings. The respective JAC member follows the implementation of these measures until they have been successfully completed.
As part of its overarching CR Strategy 2020, Swisscom aims to improve the working conditions of two million people by 2020. To this end, it has intensified its international partnerships, such as the one it maintains with the JAC, in order to ensure implementation of the measures in close collaboration with its suppliers.
The audits identified the following number of shortcomings:
|Number of problems||2013||2015||2016|
|Health and safety||68||100||114|
|Working hours / overtime||73||77||52|
|and “Worksheet emissions factors combustion”, FOEN, 2005 (in german).||64||45||67|
|Child and juvenile labour||10||12||7|
|Forced labour and discrimination||10||13||9|
The individual JAC members are continuously addressing these shortcomings. The collected data is updated regularly and discussed in the steering committee.
Carbon Disclosure Project (CDP) – supply chain programme
As part of its CR Strategy 2020, Swisscom is pursuing a specific target in the area of climate protection (2:1 target). As the supply chain is responsible for a major portion of Scope -3 emissions, CO2 emissions in the supply chain play a very important role. Swisscom will therefore take part in the Action Exchange programme in 2017 as part of its work with the CDP and define specific reduction targets with individual suppliers. Thanks to the emission data that the CDP collects from suppliers, Swisscom has a reliable basis for determining reduction targets for itself as well as for its key suppliers.
GeSi – commitment
As part of GeSi, the Global e-Sustainability Initiative, the world’s leading ICT providers are committed to sustainable change using new technologies. In particular, Swisscom works within the GeSi framework to promote fair and sustainable supply chains requiring global cooperation. It participates in numerous CR projects and plays an active role in them. These projects include, for example, sponsoring and collaborating in the “Smarter 2030” study; developing and positioning the Sustainability Assessment Standard Framework (SASF) as the future standard for the entire ICT sector; and the continuing development of e-tasc as an overarching platform for conducting self-assessments and audits of suppliers. Going forward, GeSI will align its organisation and its activities to the Sustainable Development Goals (SDGs).See
Main risk factors in the supply chain
Swisscom attaches great importance to the observance of human rights in the areas specified by the Social Accountability International (SAI) SA 8000 standard, which include child labour, forced labour, health and safety, freedom of association and the right to collective bargaining, discrimination, discipline, working hours and remuneration. In 2016, Swisscom published a new Human Resources Policy on its website.See
Climate risks from CO2 emissions
Climate change poses risks, for example in the form of increasing levels of precipitation as well as higher average temperatures and extreme meteorological events. These risks could compromise the manufacture of telecommunication products and network equipment and its transport into Switzerland, and thus have a negative effect on Swisscom’s market opportunities and operations. Swisscom’s greenhouse gas inventory shows that the majority of its CO2 emissions are attributable to the supply chain – a fact Swisscom takes into account in its strategic priority on climate protection.
- January 2012: Swisscom became a member of the World Resources Forum Association (WRFA) through its membership in the Global e-Sustainability Initiative (GeSI).
- March 2012: Inaugural meeting of the WRF Association, at the meetings of which Swisscom represents GeSI.
- March/October 2013: Participation at the Annual General Meetings of the WRFA in St. Gallen and the WRF in Davos.
- October 2013: Dialogue with the NGO “Brot für alle” and participation at the “High Tech – No Rights” symposium in Berne.
- 2014/15: Preliminary enquiry into a partnership with Fairphone.
- March 2016: Marketing of Fairphone via an indirect sales channel. – Dutch start-up Fairphone hopes to shake up the telecommunication sector with its smartphone, which is manufactured in accordance with fair trade principles. The focus is on the ethical extraction of raw materials, socially responsible production conditions and the longevity of the product. Fairphone sought out Swisscom as a sustainable partner. Swisscom will examine the option of marketing via its own channel in 2017.
- May 2016: As part of their “Stop benzene” petition in the summer of 2016, the two aid organisations “Brot für alle” and “Fastenopfer” raised awareness of the risks associated with using benzene in the manufacture of mobile phones. For this purpose, they compiled a ranking of the largest Swiss sellers of mobile phones, with Swisscom achieving the best results. As a reseller of mobile phones and tablets, Swisscom is committed to improving sustainability and working conditions along the supply chain through its ongoing international cooperation with GeSI and the JAC.
Swisscom has established a policy of zero tolerance towards corruption in its guidelines. The guidelines are implemented through regular training, reviews and audits across the Group. In addition, Swisscom requires its suppliers to comply with these guidelines as well. Swisscom expects neither its own employees nor any of its suppliers to grant or accept any undue advantages. Infringements may result in disciplinary actions for Swisscom employees, up to and including dismissal. If it is proven that a supplier violated anti-corruption laws, they will be reprimanded and, as a last resort, removed from the supply chain.