The content and weighting of the corporate social and environmental responsibility criteria depends for instance on the nature of the object of procurement. The target for 2019 was that corporate social and/or environmental responsibility criteria should be applied in 50% of the joint procurements published by HUS Logistics. The outcome exceeded the target: these criteria were applied in 62% of invitations to tender for joint procurements in 2019.
We have increased dialog with our suppliers and raised sustainability as an important topic in market dialog contexts. In early 2019, HUS Logistics signed a contract with Finnwatch ry for collaboration in promoting socially responsible procurement. This was a pilot project where Finnwatch participated in the preparation of two invitations to tender by HUS Logistics and provided recommendations on how to integrate issues of corporate social responsibility into all public procurements undertaken by HUS Logistics. A report will be published on the results of this collaboration in spring 2020.
We continue to monitor compliance with sustainability criteria among other procurement indicators at operative meetings on procurement. We also report on the indicators to the strategic steering group for procurement. In autumn 2020, we will train all HUS Logistics procurement experts in the use of the new manual and tools. We will also continue to develop sustainability criteria in the various categories of HUS Logistics. Our reporting experiences will be leveraged in the sustainability group set up at HUS in 2020, where the HUS Logistics Development Manager in charge of sustainability is a member.
Human rights in countries where procurements are made
The supply chain for products procured by HUS Logistics is global and includes several ‘risk countries’ (BSCI classification). We evaluate the human rights risks involved in each procurement at the market survey stage as we explore where the products to be procured are produced and how those countries rank on the BSCI list of risk countries. We also discuss the market situation and identified risks with potential suppliers. The products commonly imported from BSCI risk countries include surgical and examination gloves and personal protective equipment such as surgical gowns, masks and caps.
Typically, there are risks involved in the procurement of disposable supplies acquired in large quantities whose manufacture requires a great deal of manual labor. The human rights risks we identify include issues with wages, working hours, freedom of association and recruitment fees. Our corporate social responsibility reporting has also highlighted forced labor and the use of child labor. We aim to minimize these risks by insisting on transparency with our suppliers, including e.g. audit reporting. HUS Logistics does not itself audit suppliers or production plants; instead, reliable third party certified audit reporting is included as a contractual requirement in procurements from risk countries.