What you need to do as a supplier
We maintain regular contact with many different suppliers, ranging from local service providers to global producers of raw materials, logistical services and technology. Yara's suppliers are among our recognized business partners, and we want to foster these relationships.
Yara works according to internationally recognized and endorsed standards in key areas such as international human rights, business ethics and labor conditions. We expect our business partners to do the same and are committed to working only with partners that fulfill these requirements.
We expect the highest standards from our selected partners. You will find the necessary information we request for a good collaboration on this page.
Business partner code of conduct
One of Yara’s goals is to develop relationships with business partners that share similar corporate values as Yara and conduct their business in an ethical and compliant manner. The Code of conduct for Yara’s business partners (BPCoC) is the Yara policy that outlines the legal obligations and the integrity standards Yara expects its business partners to uphold. The BPCoC considers the same internationally recognized and endorsed standards for human rights, business ethics, and labor conditions as our Code of conduct.
Integrity Due Diligence
Integrity Due Diligence (IDD) is the procedure for ensuring and monitoring the integrity of potential, new, and existing business partners. Yara had more than 30,000 active suppliers in 2021. Approximately 13% of the suppliers had completed the Integrity Due Diligence (IDD) self-assessment questionnaire. The purpose of the IDD process is not to reject business partners, but to identify integrity risks and to mitigate these to safeguard Yara’s interests. If adverse responses are identified in the IDD self-assessment questionnaire, we initiate a dialogue with the supplier, and are committed to influencing them to uphold the same integrity standards as at Yara. Fewer than 1% of our business partners are rejected annually.
As part of the IDD Procedure, we continuously monitor compliance in our supply chain by screening suppliers against sanctions, watchlists, and compliance databases. On a risk-basis, certain suppliers are selected for additional follow-up, including in-depth due diligence work, training and other communication efforts.
The policy describes how we want to cooperate with our suppliers to create transparency in our suppliers’ business sustainability performance and how to improve their performance, and with that our own performance, where required. This policy guides our global Procurement organization and the implementation of a sustainable procurement program at Yara.
The objective of the Supplier compliance management process is to describe what the minimum requirements for supplier pre-qualification, qualification, and supplier compliance monitoring are, including supplier auditing, following a risk-based approach. This is a global process that allows cross-functional Procurement teams to cover increasing internal and external due diligence and reporting requirements, such as the Norwegian Transparency Act (Åpenhetsloven). The process document is currently being developed and aiming to start the implementation during the 2nd half of 2022.
We conduct supplier audits and assessments in sectors in which we have identified risks through, for example, our Integrity Due Diligence process, human rights impact assessments, reports of severe accidents, or previous audit findings. In 2021, we ran a risk-based audit program related to road transport. Risk-based audits include performance evaluation of the carriers prior to audit.
A total of 21 audits were conducted across Europe. These audits cover health and safety performance, environmental policies, human rights, and operational issues. Non-conformities and observations are recorded and followed up with the companies.
Yara seeks to enter into fair and balanced agreements with all suppliers, based on consistent legal terms, and therefore it is our company policy that all supplier agreements should be based on our GTC of Purchase.
Please note that Yara may use country specific versions of this GTC of Purchase in certain jurisdictions to accommodate for mandatory law.