Telia Company reinforces efforts to limit supply chain emissions

• Today, the Joint Alliance for CSR (JAC), an industry body that unites 26 of the world’s biggest telecom companies, including Telia Company, issued a report highlighting the significant actions all members have taken to address climate change and achieve net-zero goals, and called on its supply chain to implement new best practices for decarbonisation.

Telia continuously engages with its suppliers on sustainability, as more than 90% of Telia’s CO2 emissions come from the global supply chain on which it relies to deliver products and services to its customers. Currently, 45% of Telia’s supply chain emissions from purchased goods and services and capital goods are covered by science-based climate targets, an increase of nearly one-third since the end of 2022, with another 14% awaiting external validation. Telia’s goal is that 72% of its supply chain emissions from purchased goods and services and capital goods will be covered by science-based reduction targets by 2025.

When selecting suppliers, Telia considers factors such as price, quality, sustainability standards and ability to innovate. Telia’s sourcing function is responsible for supplier sustainability risk assessments, including due diligence and audits. Local or group-level subject matter experts also lend support in auditing and dialogue meetings.

The objective of the due diligence process is to ensure that Telia only engages with suppliers that meet its standards and require the same standards from their own suppliers. The process has a risk-based approach that allows Telia to focus on suppliers that could potentially expose individuals, the environment and Telia to elevated risks.

Audits enable Telia to assess whether suppliers comply with its requirements. Decisions about which suppliers to audit are made together with Group sourcing management and other business stakeholders, based on a dynamic approach that enables Telia to react to incidents and high-risk issues. Audits conclude with reports that identify any non-conformities and mutually agreed corrective action plans (CAP), if appropriate.

Telia collaborates with other telecom operators through the JAC to assess sustainability practices in lower tiers in the supply chain. Members of the JAC share resources and best practices to coordinate supplier audits using common requirements in five areas: labor, health and safety, environment, ethics and management systems.

As part of its supplier management process, Telia maintains a continuous dialogue with suppliers to increase their awareness and understanding of its expectations. Audit non-conformities, as well as risks and challenges that require a joint approach, are raised at supplier executive meetings where top management from both sides engage to address topical issues and agree on action plans. If the companies do not reach an agreement and a supplier fails to meet an agreed CAP, termination of the supplier is considered.

In 2022, climate was one of the key areas in which Telia engaged with its suppliers. By the end of the year, 35% of Telia’s supply chain emissions from purchased goods and services and capital goods were covered by science-based reduction targets, with an additional 16% in the pipeline awaiting external approval. Telia engaged with suppliers in various ways, ranging from top-level management meetings to a call to action issued during the COP27 global climate summit. Telia also provides support to suppliers through the 1.5°C Supplier Engagement Guide.

Read more about how Telia is transforming its supply chain and click here to read the JAC report and learn more about the 10 best practices.