Responsible Procurement at Damco
In today’s global economy, it can be a challenge to ensure sustainable supply chains, with businesses focusing on cost efficiency and profitability. In Damco, we believe that Responsible Procurement is not conflicting with this business intention. Damco’s Responsible Procurement approach aims for a better cost performance, while promoting responsible business practices related to labor, environment, human rights and anti-corruption. With Responsible Procurement we want to create stable and long lasting relationships with our suppliers and to jointly explore Responsible Procurement opportunities.
Collaborating With Our Suppliers
Responsible Procurement in Damco is geared around dialogue and supplier development.
We want to build awareness about sustainability and where necessary, start a dialogue with our suppliers to understand how their management systems and practices are aligned with Damco’s Third Party Code of Conduct. We aim at increasing suppliers’ capability for managing sustainability towards continuously improving their social and environmental performance. We intend to build long term relationships with suppliers who promote sustainable business practices and foster business growth.
“In Damco we are aiming for a profitable and sustainable business. In achieving this objective our suppliers are instrumental in keeping and expanding our businesses in existing and new markets.”
Jonas Krogh, Head of Global Procurement
Engaging suppliers in Damco Responsible Procurement
As part of Damco procurement process, all suppliers are required to acknowledge and adhere to the Damco Third Party Code of Conduct. During the tendering stage or pre contract signing phase suppliers of critical categories are requested to provide information on how they work with sustainability and Responsible Procurement via HSSE & Sustainability questionnaire. Based on the responses provided we engage in a dialogue with the supplier.
Responsible Procurement is a long-term process. Suppliers are not expected to be immediately and fully compliant with Damco Third Party Code of Conduct, as improving on certain topics may take some time and effort. However, our suppliers are expected to commit themselves to conduct their business in an ethical, legal and socially responsible manner and to implement the standards as listed in Damco Third Party Code of Conduct.