Responsibility in our value chain
Ragn-Sells has an extensive value chain, with suppliers, business partners, and customers involved in our daily operations.
Given our business, who we are, and where we operate, we often play a crucial part in other actors’ value chains, both as a customer and as a supplier. This, in contrary to other more conventional businesses, makes our value chain extensive and puts a demand on us to act as a responsible business partner in everything we do.
From downstream to upstream
In order to act as a responsible business partner, we need to identify and be aware of any potential risks, both downstream and upstream. In our downstream activities, involvement with other actors, whether local or global, could potentially involve risks, such as non-compliance and deviations from environmental, social, and economic laws and regulations. In our upstream flows, risks include poor working conditions for entrepreneurs, hired transporters, and workers at the sites of our suppliers and customers.
Ragn-Sells’ Business Partner Code of Conduct lays a solid foundation for risk mitigation and stipulates our continuous efforts for a sustainable value chain.
Material brought back into society
Bringing material back into society is at the very heart of our operations. To succeed with this, we sell the collected material to recycling facilities, or alternatively, to intermediaries that deliver the material to recycling. Our unit Recyclables are certified according to ISO 9001 and ISO 14001, and sell on a global market to actors such as paper mills, plastic or metal industries, who utilise the materials in their production processes. Other customers include energy companies, who use the waste products to produce electricity and district heating. Our customers primarily operate in Scandinavia and Northern Europe, but a smaller number are also found in Asia.
Our department Ragn-Sells Recyclables is not only in charge of the sales of our recycled material. They also monitor the requirements of the Ragn-Sells Business Partner Code of Conduct, for example by providing internal trainings and performing audits.
Most of Ragn-Sells’ purchases are made within the areas of transport performed by sub-contractors (hired transporters), vehicles and equipment for the operational plants, and fuel. Through our Business Partner Code of Conduct, we strive to harmonise our procurement processes, including the requirements placed upon suppliers and sub-contractors and how these are followed up.
We recognise that an important risk area is poor working conditions for hired transporters and entrepreneurs working at Ragn-Sells sites. We strive to minimise these risks through audits, site visits, and self-assessments. We also require our sub-contractors to provide their valid permits, tax certifications, and other required documents to ensure that they perform work according to applicable legislation.
All our suppliers must have an approved agreement and undergo and sign a supplier assessment.
This supplier assessment includes a screening towards environment, quality, safety, and GDPR requirements, along with Ragn-Sells’ Business Partner Code of Conduct.
When entering a partnership with Ragn-Sells, the contract manager should regularly monitor incoming deviations and complaints, pay attention to their level of severity from an environmental perspective, health and safety perspective, and potential effect on the customer. If a deviation or a complaint is observed, this can be reported to Ragn-Sells sustainability department, where the incident is followed-up based on the specific situation and circumstances.
During 2020, audits were carried out at downstream business partners, based on risk assessments covering the geographical area, material type, treatment type, and any known details about the customer. The actions performed to reduce risks within the value chain were also applied to the actors used to transport the materials to the waste receivers. During an audit, the contract manager decides the outcome of an incident, such as corrective actions, price adjustments, penalties, or early termination of agreements. During 2020, 18 of our critical downstream customers were audited, of which three (3) resulted in terminated relationships.
Upstream business partners partake in self-assessments. Based on the results found through these assessments, our different suppliers are grouped based on risk category. Further, if it seems like the supplier is not fulfilling contracts or the Business Partner Code of Conduct, the supplier is audited. During 2020, three (3) critical suppliers were audited, of which none resulted in terminated relationships. During 2021, Ragn-Sells Recyclables primarily will continue performing audits at high-risk suppliers.
In 2020 Ragn-Sells has achieved the bronze level in the EcoVadis rating system.
Since some years back Ragn-Sells use the that is designed to manage and communicate the company's sustainability performance with ratings on four themes, i.e. Environment, Labour and Human Rights, Ethics, and Sustainable Procurement, including details of relevant strengths and improvement areas.