As an international market and technology leader in engineered joining technology (joining, connecting and fluid handling technology), offering over 40,000 high-quality products and solutions to approximately 10,000 customers in more than 100 countries, operating with its business partners in a socially and environmentally responsible way is a top priority for NORMA Group Tweet This!.
This case study is based on the 2017 CR Report by NORMA Group published on the Global Reporting Initiative Sustainability Disclosure Database that can be found 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.
NORMA Group works hard to make contractual relationships with its suppliers socially and environmentally compatible, making sure human rights, labour and environmental standards are adhered to. In order to promote sustainability in purchasing NORMA Group took action to:
- implement a Supplier Code of Conduct
- introduce Group-wide supplier scoring
- launch a sustainability self-assessment
- exclude conflict minerals from the supply chain whenever possible
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With this case study you will see:
- Which are the most important impacts (material issues) NORMA Group has identified;
- How NORMA Group proceeded with stakeholder engagement, and
- What actions were taken by NORMA Group to promote sustainability in purchasing
What are the material issues the company has identified?
In its 2017 CR Report NORMA Group identified a range of material issues, such as customer satisfaction, health and safety, efficient production processes, quality management, elimination of discrimination. Among these, promoting sustainability in purchasing stands out as a key material issue for NORMA Group.
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 NORMA Group engages with:
To identify and prioritise material topics, NORMA Group engaged with key stakeholder groups through a questionnaire that was completed by over 30 internal and external stakeholders.
What actions were taken by NORMA Group to promote sustainability in purchasing?
In its 2017 CR Report NORMA Group reports that it took the following actions for promoting sustainability in purchasing:
- Implementing a Supplier Code of Conduct
- NORMA Group’s Supplier Code of Conduct forms the basis for its sustainable supplier relations. Only a supplier who has signed the Code of Conduct can be classified as “preferred”. Among other topics, the Supplier Code of Conduct requires suppliers to comply with the following:
- Respect for and attention to human rights
- Exclusion of forced and compulsory labour
- Prohibition of child labour
- Ensuring occupational health and safety
- Business integrity (anti-corruption)
- Introducing Group-wide supplier scoring
- To be better able to assess, compare and manage its suppliers, NORMA Group has introduced Group-wide supplier scoring. Apart from the price, numerous other factors are also taken into consideration, such as quality, cost transparency and logistics services. Most importantly, one of the four pillars of scoring is “sustainability,” in which NORMA Group queries environmental and occupational safety certifications.
- Launching a sustainability self-assessment
- In 2017, for the first time, a voluntary sustainability self-assessment formed part of NORMA Group’s supplier scoring. NORMA Group asked suppliers for detailed information on social issues (freedom of association, grievance mechanisms and accidents), environmental issues (including CO2 emissions, water consumption and waste management) and, also, compliance issues. The self-assessment was completed by 18% of the suppliers included in the scoring, and NORMA Group has set the goal of increasing participation in the sustainability self-assessment by 5% every year. Additionally, NORMA Group aims to embed sustainability aspects in its commodity strategies. Sustainability fact sheets will be created for various commodities, to identify sustainability risks more effectively and minimise them in a targeted manner.
- Excluding conflict minerals from the supply chain whenever possible
- NORMA Group tries to exclude conflict minerals from its supply chains as far as possible and has introduced the “Conflict Minerals Roadmap,” to create maximum transparency within the supplier base. The Roadmap is based on the Conflict Minerals Reporting Template (CMRT) of the Conflict Free Sourcing Initiative, which all relevant suppliers had to complete and, in 2016, NORMA Group integrated the management of CMRT into its eSourcing platform, to better evaluate and follow up on feedback from suppliers. NORMA Group also trained purchasers at all sites on the importance of conflict minerals issues and the possible risk related to the materials coming from suppliers who might be involved. In addition, NORMA Group makes sure that 100% of affected suppliers have signed its Supplier Code of Conduct, which requires them to conduct due diligence on conflict minerals issues.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken 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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1) This case study is based on published information by NORMA Group, 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:
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