Annual report 2016

Responsible supply chain

Uniform sourcing policy

Posti is committed to sustainable business and bearing its responsibility with respect to society, the environment and all of its stakeholders.

Posti has a Group-wide uniform sourcing policy that defines how the sourcing function and supplier cooperation are managed. The sourcing policy supports Posti’s strategy, environmental program and the Corporate Responsibility Principles. It outlines decision-making responsibilities and responsibility boundaries, and it specifies the minimum requirements for the sourcing organization.

As part of responsible sourcing, Posti has defined its Supplier Code of Conduct. It covers legal and regulatory compliance, good business practices, principles concerning equality and non-discrimination, the avoidance of conflicts of interest, the prohibition of unethical commercial practices and environmental responsibility.

The Group’s partners are required to adhere to the Corporate Responsibility Principles. They take into account the UN Global Compact principles, the UN Guiding Principles on Business and Human Rights and the UN Sustainable Development Goals (SDGs).

The Compliance project in sourcing, which began in spring 2015, continued in 2016. The aim of the project is to ensure that everyone in the Group complies with the common practices. Sourcing practices have been improved in 2016; for example, the amount of maverick buying has been significantly reduced.

A partner that enables growth

Through category management, Posti has identified key suppliers with which the company develops partnerships that enable mutual growth. In total, Posti has nearly 8,000 suppliers, of which roughly one in five are considered key suppliers.

Posti prioritizes local suppliers in sourcing. Of the suppliers approved in 2016, 81 percent were within the scope of self-assessment in Finland, representing a combined purchasing volume of EUR 430 million. All key suppliers carry out a self-assessment that involves an acceptance of the Supplier Code of Conduct. Some key suppliers are strategic suppliers that are audited in accordance with a uniform process and model.

Responsible sourcing networks: Sedex and EcoVadis

Posti is part of two responsible sourcing networks: Sedex (Supplier Ethical Data Exchange) and EcoVadis.

Sedex is the world’s largest cooperation platform for sharing information on ethical supply chains. Sedex has over 38,000 members representing more than 30 industries in over 150 countries.

EcoVadis helps businesses monitor their suppliers’ and partners’ operating practices related to ethical, social and environmental issues in more than 110 countries. EcoVadis assesses suppliers annually based on their overall sustainability performance. Posti received a Gold rating for the performance in 2015. With a score of 65/100. Posti was ranked among the top five percent of companies in EcoVadis’ evaluation of corporate sustainability in all industries.