Sustainability / Social
Responsible purchasing
As a major buyer of both raw and indirect materials, Jotun recognises that it is in a strong position
to influence suppliers to improve their social performance and model good corporate behaviour.
As a global company with 39 factories on five continents,
Jotun has more than 40 000 suppliers for indirect materials
and works with about 1 000 suppliers covering 9 000 items
related to raw materials, packaging and investment projects.
By establishing clear contractual requirements verified by
standardised assessment tools and audits, Jotun can incentivise
suppliers to improve their social performance. In this way, Jotun
can contribute to society consistent with UN Sustainability goal
number 8 (Decent work and economic growth), goal number
12 (Responsible production and consumption), and goal
number 16 (Peace, Justice and strong institutions).
HUMAN RIGHTS POLICY
In addition to ensuring that Jotun factories have access to
materials needed to operate, Jotun works to ensure the
company’s raw materials suppliers comply with Jotun’s Human
Rights Policy. This policy is aligned with the United Nations
Guiding Principles on Human Rights and the International
Labour Organisation (ILO) Declaration on Fundamental
Principles and Rights at Work, among other internationally
recognised guidelines and declarations.
52 I Jotun Group Report 2021
As part of the company’s raw materials purchasing
agreements, suppliers are required to comply with Jotun’s
Supplier Integrity Declaration, which covers a broad range of
topics including anti-corruption, child labour and employee
working conditions, etc. To verify compliance, Jotun conducts
periodic audits. In 2021, Jotun initiated a new supplier
assessment tool to communicate its expectations and
requirements for environmental and social performance.
Jotun’s goal is to conduct annual assessments on all raw
materials and packaging suppliers. A third-party provider
(EcoVadis) will be responsible for supplier assessments, while
Jotun will conduct physical audits.
FIGHTING CORRUPTION
Jotun is aware that in some countries, individuals responsible
for negotiating purchasing agreements may be exposed to
corruption. In addition to mandating anti-corruption dilemma
training for relevant personnel, Jotun policy requires that all
purchasing agreements are managed by at least two people
to mitigate risk. In addition to safeguarding Jotun’s reputation,
Jotun’s “zero tolerance” policy towards corruption sends a
strong message to suppliers and local communities that the
company will not participate in unethical business practices.