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Responsible sourcing

The construction sector consumes significant quantities of materials to create our cities and communities. As a leading contractor and project developer, Skanska has an important role to play, focusing on responsible sourcing.

Sustainable procurements provide our customers with the best values of products and services, going beyond price and quality to also consider safety, ethical, environmental, social and diversity and inclusion aspects over the whole product or service lifecycle.

Extraction of raw materials for large volume products such as concrete (cement, sand and gravel) and ferrous/non-ferrous metals for reinforcement and other components of structures can have significant negative sustainability impacts at their sites of extraction and production. Significant opportunities therefore exist to improve the sourcing and use of virgin materials and their replacement by other suitable, more sustainable, alternatives, such as reused or recycled materials.

Skanska sees this as an essential and efficient business practice that we are integrating into the way we work. The purpose is to generate benefits to our customers, Skanska and society, while maximizing resource efficiency and minimizing damage to the environment, meeting our ethical, human rights and employment standards and promoting diversity and equality throughout the supply chain. Our Supplier Code of Conduct is used across all business units when signing agreements with suppliers.

The process to ensure that our suppliers and supply chain are in line with our sustainability requirements differs slightly country by country.

Supply chain risks and opportunities

Skanska depends upon tens of thousands of suppliers each year to fulfill customer obligations. Suppliers represent both performance and ethical risks.

The performance risk of suppliers relates to their ability to perform, which depends upon financial resources, access to labor, ability to procure materials, and management skills. For many projects, Skanska pre-qualifies suppliers based on set criteria. For the rest of the projects, Skanska reviews suppliers after they submit a tender, and prior to a contract award.

Our Supplier Code of Conduct describes the behaviors we expect of suppliers. In 2017, Skanska increased due diligence efforts on the Group's broad network of consultants, partners, suppliers and subcontractors. This increased scrutiny – done through a risk-based approach – will continue to intensify, further ensuring adherence with the Supplier Code of Conduct.

Suppliers also represent opportunity. By collaborating with the Group's supply chain, Skanska can build for a better society at higher levels. The Group's sustainability goals depend on the entire supply chain, so it is important that expectations are communicated. Skanska's values of Act Ethically and Transparently and Be Better Together are especially relevant in regards to working with suppliers.

Sustainability responsible sourcing guide

The process to ensure that Skanska's supply chain is in line with Group sustainability requirements and the Supplier Code of Conduct has differed by country.

To align approaches, development of a best practice guide for responsible sourcing was begun in 2017, covering sustainability issues with a comprehensive focus on green. In 2018, the best practice guide will be further developed and implemented. This guide will enable knowledge sharing and will direct the assessment of sustainability risks in procurement.