Bank to block unethical suppliers from its 'procurement universe'

17 February 2011
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Barclays subjects top suppliers to CSR scrutiny

17 February 2011 | Lindsay Clark

Danish financial services firm Danske Bank Group has committed to screen its entire supply base for sustainability and ethical credentials before the end of 2011.

From the beginning of this year, all new suppliers must meet the conditions of the screening policy, which ensures they provide extensive information on a new website before they can work for the bank. In addition, the bank’s CorporateResponsibility 2010 report said: “Our goal is to screen all the suppliers managed by the group procurement department in 2011.”

The move is part of a policy to only collaborate with suppliers that respect employees’ rights, maintain a good working environment and work continually to comply with local environmental law. It also wants to ensure suppliers are not associated with bribery, discrimination or any type of forced or exploitative child labour.

The bank has set up a process to identify existing suppliers that violate its responsible sourcing requirements. It has employed Maplecroft to screen its vendors and put suppliers into high, medium and low risk groups. 

“If a supplier does not meet one of our requirements, we will give the company an opportunity to present its case. This way, we can determine whether the supplier is taking the necessary actions,” Danske Bank said.

It added: “The screening process will lead to a recommendation to the group’s Responsible Sourcing Board, which will decide whether to pursue further dialogue in order to promote positive changes. In extreme cases, the board can decide to exclude the supplier from the group’s procurement universe.”

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