Supply chain responsibility

Vattenfall’s sustainability responsibilities extend beyond our own operations and include impacts, risks and opportunities that may arise across the value chain. Managing these impacts responsibly is essential to reducing risk, strengthening resilience and supporting long-term value creation.

We work with approximately 30,000 suppliers across our main sourcing categories, including goods and services, as well as commodity fuels such as biomass, low-carbon gases and nuclear fuel.

Strategy and governance

Through our supplier engagement strategy, sustainability assessments, and collaboration in specific industry initiatives, we are striving to increase our influence in the supply chain, strengthen our relationships with suppliers and support improvements in their sustainability performance.

Our Code of Conduct for Suppliers and Partners defines expectations related to human rights, labour conditions, environmental responsibility and business ethics. The Code applies to suppliers and partners, including joint ventures and consortium partners.

To learn more about the initiatives Vattenfall is involved in, read more on Supply chain initiatives.

Due diligence and risk management

Procurement and business functions at Vattenfall, together with support from sustainability experts, drive the transition to a sustainable supply chain.

Our vision is to connect Vattenfall to a leading and sustainable supply chain. We continuously improve our sustainable sourcing and purchasing practices throughout our value chain by developing clear guidelines, raising awareness, and standardising processes across our functions and business areas.

Vattenfall’s goods, services and fuel suppliers are screened and monitored for sanctions and adverse media coverage. We carry out an internal risk assessment of our supplier base based on country, product or service category risk, and spend. Based on the results, we conduct on-site audits of high-risk suppliers to verify the compliance of our minimum sustainability requirements. Corrective actions are taken based on audit findings and are regularly followed up on. Implementation of our processes is tracked on a regular basis as we engage in new projects, investments and business relationships.

Depending on the nature and severity of the finding, the follow-up verification could involve a desktop review or a follow-up audit. During audits, workers are informed about the availability of Vattenfall’s whistleblowing channel to ensure access to grievance mechanisms. Procedures for remediation and escalation are defined in the internal Audit Guideline and Red Flag Guideline.

In line with the International Responsible Business Conduct (IRBC), we aim to include sustainability requirements systematically in pertinent product category strategies. Accordingly, sustainability requirements based on Vattenfall’s focus areas, such as CO₂, human rights, and circularity, are embedded in tenders of these product categories.

With the ambition to manage supplier-related sustainability risks and impacts beyond first tier suppliers, we are expanding our knowledge of risks and impacts deeper in our supply chains. We believe that partnerships and stakeholder collaborations offer the greatest opportunities for change. Therefore, we actively participate in various supply chain initiatives and seek dialogue with NGOs and other stakeholders.