Case study: How Avinor promotes responsible supplier behaviour
Avinor is a wholly state-owned limited liability company responsible for the 45 state-owned airports and air navigation services for civilian and military aviation in Norway. Accordingly, Avinor works systematically to combat all forms of corruption, discrimination, environmental crime and harassment Tweet This!, making its ethics guidelines compulsory not only for management and employees, but also for suppliers and partners.
This case study is based on the 2017 Annual and CSR report by Avinor published on the Global Reporting Initiative Sustainability Disclosure Database that can be fo und at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Abstract
In 2017, Avinor spent a total of NOK 7,164 million on procurement, of which NOK 4,130 million related to major construction projects such as terminal expansions and runway extensions and NOK 3,033 million related to operating purchases. Making sure its suppliers comply with Avinor’s principles for responsible business behaviour is, thus, a top priority. In order to promote responsible supplier behaviour Avinor took action to:
- introduce contractual terms and conditions
- screen new suppliers
- monitor existing suppliers
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With this case study you will see:
- Which are the most important impacts (material issues) Avinor has identified;
- How Avinor proceeded with stakeholder engagement, and
- What actions were taken by Avinor to promote responsible supplier behaviour
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What are the material issues the company has identified?
In its 2017 Annual and CSR report Avinor identified a range of material issues, such as being a good and professional employer, ensuring good aviation services for the whole of Norway and performing its role in society in a safe, efficient and environmentally-friendly manner, and being a driving force in the work on climate and environmental challenges within aviation. Among these, promoting responsible supplier behaviour stands out as a key material issue for Avinor.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Avinor engages with:
| Stakeholder Group |
| Customers (airlines and passengers) |
| Politicians |
| Airport partners |
| Local and central businesses |
| The Norwegian Armed Forces |
| Research environments |
| Special interest groups |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics based on stakeholders’ expectations, opinions and priorities, Avinor carries out regular stakeholder analyses and systematic dialogue.
What actions were taken by Avinor to promote responsible supplier behaviour?
In its 2017 Annual and CSR report Avinor reports that it took the following actions for promoting responsible supplier behaviour:
- Introducing contractual terms and conditions
- In 2015 Avinor introduced a set of contractual terms and conditions that ensures suppliers with whom Avinor concludes contracts have ethics guidelines, and take their corporate social responsibility seriously. These terms and conditions specify all of Avinor’s principles regarding human rights, working standards, HSE (health, safety and the environment), and forbidden business practices. An overview is maintained of all the Group’s suppliers that have signed agreements regarding responsible business practices and the agreements’ provisions allow for supplier audits to be carried out. A material breach of an agreement regarding responsible business practices entitles Avinor to terminate all applicable agreements with the supplier, if critical conditions are not followed up satisfactorily.
- Screening new suppliers
- Suppliers who wish to compete for a contract with Avinor must comply with its principles for responsible supplier behaviour. Avinor requires, for example, that international human rights are respected and that its suppliers are not complicit in their violation. Additionally, suppliers must ensure that their workers’ salaries meet minimum wage requirements, that their working hours are in accordance with applicable national legislation, that their workers have the opportunity for adequate rest, and that employment contracts are written in a language that workers understand. Avinor has also concluded a cooperation agreement with Skatt Øst (Norwegian tax administration) on the intensification of efforts to combat violations of labour market legislation. The agreement’s purpose is to ensure that all of Avinor’s suppliers and subcontractors in building, construction and cleaning fulfil their statutory obligations. These obligations include the Working Environment Act, regulations relating to pay and working conditions in public-sector contracts, and tax legislation.
- Monitoring existing suppliers
- Avinor’s agreement on responsible supplier behaviour enables it to review a contractual party’s follow-up and compliance with all of the points in the contract. In addition, Avinor’s cooperation agreement with Skatt Øst allows Avinor to gather information from the tax authorities during the term of each contract, in order to confirm that the supplier and any subcontractors are still registered in the proper registries and are adhering to their obligations in relation to the Norwegian tax authorities.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
2) Disclosure 414-1 New suppliers that were screened using social criteria
Disclosure 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening does not correspond to any SDG.
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
- Business theme: Workplace violence and harassment
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Labor practices in the supply chain
- Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
- Business theme: Workplace violence and harassment
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References:
1) This case study is based on published information by Avinor, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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