AVK CSR 2023-24 web - Flipbook - Page 42
G
OUR GOVERNANCE
ESG management
structure at AVK
Key highlights of 2023/24
Future goals and activities
As a global company, we face growing
demands related to sustainability and ESG
responsibilities which require strengthening our
processes and procedures for data collection
and documentation. Sustainability and ESG are,
and will continue to be, a focus. On 1 February
2024, a dedicated central Group Sustainability
& ESG function was established, reporting
directly to AVK Holding’s top management.
• A central Group Sustainability & ESG
function has been established
• 53 supplier audits have been conducted in
2023/24 as part of the 2023/24 audit plan
• A programme has been initiated to ensure
the level of environmental certification for
metal foundries in China
• Ongoing revision of our Code of Conduct
for suppliers
• We will develop an AVK Sustainability
Roadmap based on the results of our
double materiality assessment in 2024/25
• We will focus on our Code of Conduct for
suppliers and initiate an internal audit
process to ensure compliance in 2024/25
• We will review our Business Ethics Policy
and Anti-Corruption and Anti-Bribery Policy
in 2024/25
With the establishment of this new ESG
function, AVK has allocated additional resources
to ensure the organisation is prepared and
future-proofed for compliance with evolving
ESG regulations and reporting standards,
including customer expectations and the EU
Sustainability Directive (CSRD).
* For further details see Governance under Tables, comments, and accounting policies
Anti-corruption
Part of this work has required an extra effort
to ensure that both existing and new suppliers
have been able to deliver while complying with
agreed requirements and standards.
AVK maintains a zero-tolerance policy against
any form of corruption, extortion, or bribery.
Such actions are regarded as gross misconduct
and may lead to severe disciplinary actions.
Upon employment, it is standard practice for
the general managers of all Group companies
to sign our compliance policy which requires
compliance with national and international anticorruption and anti-bribery laws. This policy is
reviewed annually during the board meetings
of all companies to ensure that it remains a
key point of attention in day-to-day business
operations. Ultimately, these practices should
ensure that we avoid breaches.
Supplier management and
collaboration
During the financial year 2023/24, we have
faced challenges with longer freight times
between Asia and Europe and subsequent
higher prices on freight due to the situation in
the Red Sea. This has resulted in increased
42 | AVK Sustainability report 2023/2024
attention to supplier selection at AVK. Our top
priority has been to live up to agreements and
ensure timely delivery to our customers.
Despite the various challenges in our value
chain, we have managed to deliver to our
customers and integrate new suppliers. These
suppliers have been subject to our normal
approval processes, including supplier audits, to
ensure responsible behaviour.
Code of Conduct
With the specified supplier requirements and
the Code of Conduct, we want to make sure our
suppliers are aware of and work on decreasing
their environmental impact, that they respect
human rights, and that they do not use forced
labour or child labour. AVK’s Code of Conduct
is integrated into all purchase agreements
with suppliers, it is part of our standard terms
and conditions for purchase, and it must be
accepted for all purchase orders.
If an AVK supplier or collaborator does not
comply with our Code of Conduct, we will
initially notify them of non-compliance and
initiate a dialogue to improve. In case of
repeated non-compliance against our Code
of Conduct and it is deemed that compliance
is unlikely, we will move to terminate the
collaboration with the supplier.
We are in the process of revising our supplier
Code and Conduct, including process
and documentation. This is to increase
transparency in our supply chain and to ensure
that we comply with relevant legislation and
international standards.
Supplier selection
We only work with suppliers that guarantee
compliance with all legislation on safety,
environmental, climate, and human rights.
Additionally, all selected suppliers must comply
with our ethical standard outlined in the AVK
Code of Conduct.
We work continuously with registration, control,
follow-up, and further development of the
supplier collaboration to ensure compliance
with the Group’s policies, including the Code of
Conduct.
