A responsible value chain
As a truly global company, active in 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.
Atlas Copco is continually strengthening its 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.
Atlas Copco welcomes input and feedback from all stakeholders. Stakeholders can report suspected violations to our code of conduct, the Business Code of Practice, or to our commitment to human rights via our misconduct reporting system, Atlas Copco SpeakUp.
Conflict minerals
Responsible sourcing of minerals is essential to Atlas Copco. 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, Atlas Copco has a comprehensive program to investigate the possible use of all conflict minerals included in components used in Atlas Copco products. Cobalt was added to the program in 2020, and data collection and due diligence using Responsible Minerals Initiative (RMI) guidelines and Cobalt Reporting Template (CRT) will be done in 2021.
Atlas Copco is 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, Atlas Copco adheres 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
Atlas Copco requires its 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 Business Code of Practice 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.
Iran
Atlas Copco has banned sales to and has no operational sites or employees in Iran. Previous to May 2018, certain limited sales were made in accordance with international agreements and sanctions.
Cuba
Atlas Copco has no operational sites or employees in Cuba and conducts limited indirect sales there via its non-U.S. entities.
DPRK
Atlas Copco has banned sales to and has no operational sites or employees in DPRK.
Syria
Atlas Copco has banned sales to and has no operational sites or employees in Syria.