A responsible value chain
As a truly global company, we are active in over 180 countries, we work hard to uphold the same standards of ethics and conduct wherever we do business.
Many countries struggle with corruption, labor issues and human rights abuses. Environmental standards and legal frameworks also vary widely from one country to another. These issues may arise for a number of reasons, such as the quality of infrastructure, legislation or business practices. This risk is even higher in conflict zones, where there is little or no rule of law.
We continually strengthen our business practices in these markets through dialogue aimed at understanding and reducing the risks involved. We believe that we can have a positive impact. Together with our partners and other stakeholders, we monitor developments and look for ways to improve the situation.
We welcome input and feedback from all stakeholders. Stakeholders can report suspected violations to our Code of Conduct or to our misconduct reporting system Atlas Copco SpeakUp.
Conflict minerals
Responsible sourcing of minerals is essential to us. Although the Group does not procure directly from smelters/refineries, some parts of the supply chain do. To ensure responsible sourcing of tin, tantalum, tungsten and gold, we have a comprehensive program to investigate the possible use of all conflict minerals included in components used in our products. Cobolt was added to our Responsible Minerals program in 2020, and since then we regularly collect information about it together with conflict minerals.
We are not in the scope of Dodd-Frank Act and EU regulation 2017/821, but based on concerns of violations of human rights including forced labor, human trafficking and child labor, and to support our customers’ obligation to these two Acts, the Group has measures in place to detect and prevent the use of conflict minerals in its supply chain.
As a member of the RMI, we adhere to its guidelines by encouraging suppliers to source from smelters verified by a third party such as RMI’s Responsible Minerals Assurance Process (RMAP). We also commit to transparency by providing reporting templates to customers about smelters in the supply chain and collaborating with stakeholders.
Requirements of our suppliers
We require our direct suppliers to commit to responsible sourcing of all minerals included in the parts and products they sell to us. This commitment is exercised through minerals data collection and due diligence, implemented every year. Moreover, all our significant suppliers must sign the Code of Conduct that contains an article on responsible sourcing requirements.
Our process, due diligence and disclosure of information
- Perform a risk assessment and select relevant suppliers for data collection and due diligence according to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas;
- Request our suppliers conduct a reasonable country of origin inquiry to determine if the conflict minerals come from the DRC or its nine surrounding countries;
- Perform analysis of smelters reported by our suppliers against the RMI smelter database;
- Implement a Corrective Action Plan with all suppliers that reported smelters of high risk based on the RMI smelter database;
- Encourage and educate our relevant suppliers on the importance of reaching out to any upstream smelters/refineries that provided them with conflict minerals and require them to engage with RMAP and obtain conflict-free status;
- Continue our partnership with RMI and collaborate with our customers and suppliers in improving our responsible sourcing;
- Publish the results of our due diligence and data collection from our suppliers, as well as efforts in implementing this policy, in order to contribute to general transparency on this topic for relevant stakeholders and the public.
Sales restrictions
We follow laws and regulations as applicable to us. Additionally, the Atlas Copco Group has made the following principle decisions as listed below.
Russia
Since the beginning of March 2022, we have paused all new orders for capital equipment to Russia, except some equipment for humanitarian purposes, such as medical equipment. We perform some services, for example connected to legally binding warranty obligations, but only after controlling that we can fulfill all trade compliance obligations.
Myanmar
We have decided to restrict business in Myanmar. The restriction does not include equipment for humanitarian purposes such as hospitals or Covid-19 clinics nor spare parts and service for previously sold equipment, all subject to being allowed under applicable sanctions.
Iran
We have banned sales to and have no operational sites or employees in Iran. Previous to May 2018, certain limited sales were made in accordance with international agreements and sanctions.
Cuba
We have no operational sites or employees in Cuba and conduct limited indirect sales there via its non-U.S. entities.
DPRK
We have banned sales to and have no operational sites or employees in DPRK.
Syria
We have banned sales to and have no operational sites or employees in Syria.