Strengthening supplier partnerships

Supplier engagement

We want to promote responsible business conduct in our supply chain. FLSmidth is a signatory to the United Nations Global Compact and is guided by the United Nations Guiding Principles for
Business and Human Rights and the OECD Guidelines for Multinational Enterprises. We base our supply chain due diligence work on the OECD Due Diligence Guidance for Responsible Business Conduct.

We require all suppliers to commit to the FLSmidth Supplier Code of Conduct. The Supplier Code of Conduct includes requirements in relation to human rights & labour, health & safety, environment, compliance and related management systems. FLSmidth is a member of the Responsible Business Alliance (RBA), as part of our commitment to social responsibility, sustainability and compliance as reflected in the Supplier Code of Conduct, which aligns closely with the principles outlined in the RBA Code of Conduct.

We perform basic sustainability risk assessments when our staff visit supplier sites. The assessments contribute to identifying which suppliers need development and maintaining awareness on sustainability and on-site learning for our staff. We have targets for conducting the assessments integrated into KPIs and regularly monitor performance.

We engage suppliers in dialogue on environmental impact. Specifically on climate change and CO₂ reduction. FLSmidth has validated science-based targets and for our upstream supply chain the target is that FLSmidth A/S commits that 30% of its suppliers by spend covering purchased goods and services, will have science-based targets by 2025. We want to engage both new and
existing suppliers to achieve the target.

FLSmidth maintains a global whistleblower hotline which allows employees, business partners and other relevant stakeholders to anonymously report potentially serious allegations concerning financial crimes, such as bribery or fraud, environmental violations, breaches of competition law and human rights violations. The whistleblower hotline is hosted by a third party and allows for fully anonymous and encrypted reporting in several languages.