Sustainable supply chain management
Sampo Group emphasises sustainability factors when working with suppliers.
Supply chains are a crucial part of the sustainability of Sampo Group’s products and services. Sampo Group is a major procurer of goods and services, especially in claims handling, and therefore has an impact on the economy, the environment, and people. Sustainability issues can carry significant reputational and operational risks if not managed correctly.
Approach
The Sampo Group Code of Conduct provides the group-level guidance principles regarding sustainable supply chain management. According to the Code of Conduct, Sampo Group expects its suppliers and other business partners to comply with the principles of the Code of Conduct throughout their own operations and supply chains. Moreover, Sampo Group aims to take ESG considerations, including climate change, into account in supply chain management. In addition to the Code of Conduct, each Sampo Group company has its own supplementary policies and guidelines for sustainable supply chain management.
The types of activities related to Sampo Group’s products and services that are carried out by suppliers include property, vehicle and content repairs, health and hospital services, and travel services. Sampo Group also makes purchases, such as external consultancy, office supplies, and IT equipment, to secure the company’s own operations.
The nature of the business relationships with suppliers varies with respect to the type of product or service purchased and can be long-term or short-term, contractual or non-contractual, project-based or event-based. Sampo Group can, for example, offer networks of repair shops that have a long-term contractual relationship with the company. On the other hand, certain suppliers, such as external consultants, are typically hired on a project basis and can be either long-term or short-term.
Sampo Group’s suppliers can have sector-specific characteristics, but they vary with respect to the type of product and service purchased. For example, re-building tends to be highly labour intensive and, content claims are capital intensive when items are replaced, but labour intensive if items are repaired.
Sampo Group is committed to encouraging and supporting the company’s suppliers and partners in their efforts to use more sustainable methods in their operations. By actively requesting innovative solutions, resource efficiency, transparency, and responsibility from suppliers, Sampo Group aims to minimise its negative impact and stimulate sustainable production and consumption. Set requirements, in combination with close cooperation with suppliers and partners, enable Sampo Group to develop its business while also contributing to more sustainable development.
If non-compliance with requirements is detected, the first step to remediate non-compliance is to verify what has happened and investigate the reasons leading to it. Depending on the findings, corrective actions taken can be, for example, improvement of processes, correction of mistakes (e.g. errors in invoicing), refunds, or audits. If the error or contract breach is major, it may result in termination of the contract.
Characteristics of sustainable supply chain management
Sampo Group
| If | Topdanmark | Hastings | |
| Supplier Code of Conduct (or similar) based on the UN Global Compact | Yes | Yes | Yes |
| Supplier Code of Conduct (or similar) applicable to third parties, i.e. sub-suppliers | Yes | Yes | No |
| Additional contractual requirements for specific suppliers (e.g. based on ESG risks, sector, size, geography, business relevance) | Yes | Yes | No |
| Targets (externally disclosed) related to supply chain management | Yes | Yes | No |
| Supplier risk assessments (e.g. audits, questionnaires) | Yes | Yes | Yes |
| Collection of feedback from suppliers (e.g. during tender processes, contract negotiations) | Yes | Yes | Yes |
| Mapping of Tier 1 suppliers (direct suppliers) according to e.g. service and/or product category, expenditure | Yes | Yes | Yes |
Group goals and ambitions
Sampo Group aims to drive high standards across supply chains.
Company-level information
Science-based climate targets
If has set a voluntary science-based climate target for its claims operations. If commits to engage with its suppliers so that 30 per cent of its suppliers by spend covering purchased goods and services will have science-based targets by 2028. The target was validated by the Science Based Targets initiative (SBTi) in December 2023.
Supplier Code of Conduct
If has a Supplier Code of Conduct that defines the minimum requirements that If asks suppliers to comply with. The code covers the areas of human rights, labour rights, the environment including climate change, and anti-corruption, and it is based on the ten principles of the UN Global Compact and its underlying conventions and declarations. If’s claims handling contractors, such as vehicle or property repair contractors, are required to comply with If’s Supplier Code of Conduct. They must, for example, ensure the fair and equal treatment of all employees, take appropriate measures to protect privacy rights and secrecy, promote the development and use of environmentally friendly technologies, and compete in a fair and honest way.
All employees who purchase products or services within the areas of office procurements, claims handling, and claims settlement must incorporate the Supplier Code of Conduct as part of the contract. This applies both to new agreements and to agreements that are to be renewed. The code applies to suppliers with whom If conducts business, including subsidiaries and sub-suppliers. It also applies to all the suppliers’ employees, whether permanent or temporary.
If's Supplier Code of Conductexternal link
Sector-specific requirements
If’s property and vehicle repair contractors are not only required to comply with If’s Supplier Code of Conduct, but they must also comply with If’s sector-specific Additional Environmental Requirements (AER), which are incorporated into the purchasing agreements. The additional requirements cover transportation, energy usage, material usage, water usage, handling of chemicals and hazardous substances, and waste handling. If’s priority is to ensure that waste and materials from repair processes are managed in the best possible way, and If encourages its contractors to minimise their consumption of resources and materials, and to reuse and recycle as much as possible.
Property repairs
In the Nordic countries, If cooperates with more than 1,200 property repair contractors, who perform the initial inspection and undertake repairs for claims that are reported to If. The AERs for property repair contractors include requirements to repair more, reduce material usage, demolish less, and increase remote work using video and sensors. They also include requirements for ordered material to be sent directly to the claim site to reduce transportation, use material with environmental certification when available, and increase the use of electric and hybrid vehicles.
If has two mobile tools, In4mo and MEPS, to make it possible for contractors to digitally report and calculate property damage claims on site. These tools ensure an efficient and streamlined process for property damage claims handling at every stage, and enable all contractors to comply with If’s process requirements. The system also minimises travel and enables If to measure how much waste has been generated on site.
Vehicle repairs
In the Nordic countries, If has approximately 3,000 contractors that perform vehicle repairs. If cooperates closely with the contractors and conducts regular monitoring, by means of reporting and physical meetings, to ensure that they comply with If’s requirements. The AERs for vehicle repair contractors include a requirement to repair, instead of using new parts, and to reuse spare parts. If has also set expected levels of plastic repairs and used parts, and these are monitored and reported regularly.
Supplier risk assessments and audits
If has close cooperation with its suppliers, and the company performs regular monitoring, using reporting and physical meetings. If assesses all new and large existing suppliers and performs random checks to ensure compliance with If’s policies (e.g. Supplier Code of Conduct). If non-compliance is detected, a supplier audit is one possible action that can be taken. The first step to remediate non-compliance is to verify what has happened and investigate the reasons leading to it. Depending on the findings, corrective actions taken can be, for example, improvement of processes, correction of mistakes (e.g. errors in invoicing), or refunds. If the error or contract breach is major, it may result in termination of the contract.
Due diligence process for suppliers and business partners
Employee training
If’s purchasing managers in claims handling, the heads of premises, and purchasers in If’s Group Services and the legal counsels receive training on the Supplier Code of Conduct. Purchasing managers in claims handling also receive training on the sector-specific requirements.
Supply chain programme
Topdanmark has a supply chain programme, which consists of the following:
- Supplier Code of Conduct, which sets minimum requirements for suppliers who supply goods and services to Topdanmark via a contractual relationship, and which must be integrated into new contracts and renegotiated into existing ones. Topdanmark’s Supplier Code of Conduct also applies to third parties.
- Additional contractual requirements (e.g. reduction of GHG emissions, circular economy) for selected suppliers, where it is considered relevant based on an overall analysis.
- An ESG focus group of suppliers drawn from several supplier categories.
- Auditing of selected suppliers with specific contractual ESG requirements.
- Steering procurement of office supplies (e.g. pens, paper, materials for fairs) to more sustainable options.
Supplier risk assessments and audits
Topdanmark has an ESG focus group of suppliers consisting of several supplier categories that have been selected based on criteria such as sector-specific ESG risks, geography, supply chain, market dynamics, expenditure, and size. For the suppliers in the focus group, Topdanmark performs an ESG screening consisting of a questionnaire. The questionnaire includes screening of environmental and human rights performance and labour practices. All suppliers are scored based on the responses to the questionnaire, and the score is communicated to the supplier. If necessary, Topdanmark can have a dialogue with the supplier. The ESG screening is integrated into the supplier selection process.
Employee training
Topdanmark employees in purchasing departments receive guidelines from Topdanmark’s Sustainability unit on the Supplier Code of Conduct and ESG screening of suppliers.
Sustainability strategies of suppliers
Hastings works with its suppliers to highlight the importance of sustainability within the supply chain. By communicating the company’s values and principles to suppliers, Hastings’ intention is to align the supplier’s own sustainability strategies with those of Hastings to ensure that the company is able to provide the best service, products, and pricing to its customers.
Supplier risk assessments and audits
Hastings conducts due diligence assessments on all suppliers in accordance with the company’s Procurement and Supplier Relationship Management Policy. Due diligence carried out on individual suppliers is proportionate to the size and potential impact on Hastings’ business operations. Sustainability is a key part of Hastings’ due diligence process. Critical suppliers are subject to ongoing reviews throughout the year, on a monthly and quarterly basis.
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