As a supplier, you play a big role in our ability to drive success and deliver innovative solutions. We value building strong business ties and long-standing relationships with our suppliers and are able to forge and maintain these bonds through a high standard of responsible business conduct. One of our values is responsibility, and it applies to all aspects of our business – including the parts that originate from external sources.

We require all of our suppliers to sign our Supplier Code of Conduct, which is aligned with the four focus areas of the UN Global Compact and which clearly expresses what we expect of our suppliers.

The main points of the Supplier Code of Conduct are:

Legal compliance 
The supplier is expected to be in legal compliance with all applicable laws in all jurisdictions in which it operates

Health & Safety 
The supplier is expected to provide a safe and healthy working environment for all employees

Basic Human rights 
The supplier is expected to respect the personal dignity, integrity, privacy and human rights of everyone employed or affected by its business operations

The supplier is expected to meet all applicable environmental laws, industry standards and norms

Securing a sustainable supply chain


To ensure a supply chain that lives up to our standards, we employ routine on-site inspections of our suppliers. We do this by having all our staff who visit a supplier site perform a basic sustainability assessment. This has many complementary effects; it provides data on which suppliers require development or should be blacklisted, it keeps awareness of sustainability high and it provides on-site learning for all our staff. Many new suppliers in many cases, making onsite visits to new suppliers puts sustainability in focus from day one.


Supplier inspection reports are prepared after each visit to a supplier, providing Group Procurement with an overview of the state of the supply chain and an indication of which suppliers are eligible for a supplier development program. Any non-compliance identified during a routine inspection will be noted and uploaded to the database for review. Our staff keep track of non-conformities through a central database, allowing for real-time monitoring of the state of sustainability throughout our supply chain.

Stories from FLSmidth