Future proof sourcing
Procurement supports the entire supply chain in conducting social and environmental due diligence, and setting sustainable targets for sourced goods and services. By conducting supplier due diligence, VELUX Group make informed decisions about our suppliers, minimize risks, and ensure that our supply chain is sustainable and ethical, while creating long-term value. It involves identifying and selecting suppliers and materials that adhere to sustainable and ethical standards throughout the supply chain.
To achieve sustainable sourcing, we work closely with our suppliers to implement sustainable practices, such as using renewable energy, reducing greenhouse gas emissions, and minimizing waste. Our close collaboration enables us to ensure that suppliers adhere to specific environmental and social standards, by conducting regular audits, and they create transparency throughout the supply chain.
Before entering into a contractual relationship with a supplier, we conduct a screening focusing on environmental risks, Human Rights, quality management and a geographical risk score.
The risks to VELUX are identified using internationally recognized Artificial Intelligence Software, which is used to screen suppliers to improve the effectiveness of the assessments we conduct regularly, as well as help us to make more informed decisions. The AI screening gives us a risk score of each supplier, allowing us to prioritize the due diligence effort and better report on our risks. It involves a comprehensive review of a supplier's business operations, financial status, compliance with legal and regulatory requirements, and adherence to ethical and sustainable practices.
The purpose of supplier due diligence is to mitigate the risks associated with working with a Supplier. By conducting due diligence, we ensure that our suppliers are capable of meeting both our and legal requirements, have a solid track record, and are aligned with our values and goals.
Suppliers passing our compliance screening as well as agreeing to our Code of Conduct will be subject to an on-site audit, conducted before signing of contract and beginning of any sourcing.
The audit entails questions to the quality control, complaints handling, on-time delivery as well as the regulatory and legal matters.
VELUX will use leverage with suppliers and encourage change instead of cease of collaboration, this way we help our suppliers to make us reach our targets of reducing risks as well as reaching our decarbonization target.