Hexagon Annual Report 2019

64 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Sustainability Report SUSTAINABLE PROCUREMENT Hexagon works with suppliers and business partners around the world. Many relationships are well-established and long-term. Hexagon’s relationships are built on integrity and mutual respect. Hexagon always aims to obtain products and services at the right quality, delivered in a timely manner and at the best value, whilst complying with its policies. The selection of suppliers and sub-contractors impact Hexagon’s social and environmental performance. Hexagon has supplier quality manuals which are used as tools to ensure: • Choice of suppliers based on relevant criteria including transparency, workplace conditions and environmental, health, and safety laws • Suppliers commit to Hexagon’s supplier code of conduct and monitoring of compliance through audits and self- assessment questionnaire • Development of mutually beneficial relationships • Improvement of internal and external business practices • Formalization of cross-functional decision-making teams • World-class performance • High quality through ISO 9001 accreditation • Avoid procuring products from any supplier who relies on dangerous or harmful substances to the environment The supplier quality manuals comply with the principals of the UN Global Compact. Hexagon requires all its sup- pliers to comply with the quality manual or equivalent irrespective of their country of origin. Hexagon respects and supports the protection of internationally recognized human rights and therefore supports the right to collective bargaining and freedom of association and strongly objects to any form of forced labor, child labor and discrimination in the work environment. Hexagon sources materials during the development and manufacturing phases of our products and solutions. Some of the main procurement items include: • Carbon fiber, predominantly produced in the U.S., France, Japan, and South Korea • Resin, predominately produced in the U.S, Italy and Taiwan • Plastic liner, predominantly produced in Europe and Canada • Valves and boss parts, predominately produced in the U.S. and Italy The production of the raw materials Hexagon consumes have significant environmental impacts such as GHG emis- sions. Therefore in 2019 Hexagon started active dialogs with some of its key suppliers regarding their environmen- tal efforts. New suppliers New suppliers are subject to set of criteria and risk assess- ments, involving answering a questionnaire covering quality assurance, corporate social responsibility and responsible sourcing. Status and targets • Hexagon completed three supplier audits with no major findings or required corrective actions in 2019. • Hexagon aims to formalize its engagement with key suppliers on climate and environment related issues as well as identify potential requirements in 2020.