How Businesses are Responding to the Climate Challenge
Global Statement on Modern Slavery
Date: 19th November 2019
Statkraft presents its statement made pursuant to Section 54(1) of the Modern Slavery Act 2015 (the “Act”). This statement summarises the steps taken by Statkraft with a view to preventing and combatting modern slavery in our business or supply chain.
Statkraft AS, a Norwegian State Owned Enterprise, is the parent company of the Statkraft Group. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. By providing renewable and sustainable energy solutions, Statkraft carries out activities that support a global transition towards a low-carbon climate-resilient economy. Statkraft has 3600 employees in 15 countries.
Statkraft is committed to act in a sustainable, ethical and socially responsible manner. Its responsible business conduct is based on globally supported initiatives and standards such as the UN Global Compact, the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles for Business and Human Rights, or the IFC Performance Standards on Social & Environmental Sustainability. Statkraft’s fundamental commitments are summarized in its Code of Conduct, which sets expectations on Statkraft’s employees as well as on its business partners. In addition, requirements that Suppliers are expected to meet throughout their relationship with Statkraft are summarized in Statkraft’s Suppliers Code of Conduct. Depending on the nature of the delivery, additional contractual obligations complement the requirements contained in the Supplier Code.
More information can be found on Statkraft’s website (www.statkraft.com).
Human rights, labour rights and modern slavery
As described in its Code of Conduct, “Statkraft supports and respects, within its sphere of influence, the protection of internationally proclaimed human rights and ensures that it is not complicit in human rights abuses. We also support and respect internationally recognized labour rights, including the freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced and compulsory labour, the effective abolition of child labour, and the elimination of discrimination in respect of employment and occupation.” The Code of Conduct also “prohibits the purchase of sexual services when on assignment or business trips for Statkraft”.
Statkraft’s Supplier Code of Conduct mirrors these requirements and provides more detailed descriptions on requirements relating to labour rights, including on forced labour and child labour. It also includes a similar prohibition of purchasing of sexual service.
Our codes of conduct address modern slavery, both through a general policy commitment on human rights as well as through specific human rights provisions that cover the aspects of modern slavery that are assessed as being most relevant or at risk given Statkraft’s activities and supply chain.
Human rights management
Statkraft’s approach to human rights management is based on the principles of integration and mainstreaming of its human rights policy commitments into existing governing documents, processes and systems, for instance those related to procurement, social sustainability management, human resources or security. Human rights considerations are also an integral part of our decision making processes relating to project development, mergers and acquisitions, or divestment.
Human rights are one of the six most material aspects identified in the field of corporate responsibility, and labour rights are among Statkraft’s salient human rights. Ambitions and goals towards 2020 have been adopted on human rights. These goals, alongside status relating to the implementation of the goals, are described in annual reports on corporate responsibility and in communications on progress submitted to the UN Global Compact. Continuous improvement, including on labour rights and relevant aspects of modern slavery as well as supply chain management, will continue to be described in annual report.
Systems are in place to provide all employees with training, guidance and advice with regard to interpretation of Statkraft’s Code of Conduct and desired behaviour. Statkraft’s Code of Conduct emphasises that employees have both the right and duty to report breaches of legal or ethical obligations through the line organisation or the Group’s Independent Reporting (Whistleblowing) Channel. Reporting can be made anonymously, and the channel is also available for externals via Statkraft’s web site.
Supply chain management
The basis for Statkraft’s supply chain management is Statkraft’s Supplier Code of Conduct. Suppliers are expected to meet these requirements throughout their relationship with Statkraft. Statkraft’s suppliers are informed about the Supplier Code of Conduct and other relevant requirements during the procurement process and are legally bound to the Supplier Code of Conduct by contract. During 2018 an assessment of Statkraft effort’s related to corporate responsibility management of its supply chain was carried out, and based on the findings improvement areas were identified. Statkraft is initiating a project in 2019 in order to address these areas.
Statkraft’s supplier base is very diverse, and in total the company has more than 15 000 suppliers. They stem from widely differing business sectors such as consulting, electromechanical industry and civil engineering. Some of the suppliers are small local companies while others are global industrial groups. Statkraft’s supplier base covers many countries, including countries where human rights risks are high. Understanding the risks in the supplier base is critical and in 2013, Statkraft introduced a supplier risk assessment tool towards that end. This tool enables a risk assessment of all suppliers based on activity, country risk and value and assesses to what degree suppliers are in a position to comply with the Supplier Code of Conduct through a supplier self-assessment questionnaire that includes, among other relevant aspects, questions on human rights, health and safety, working and employment conditions. The pre-qualification questionnaire also includes a specific question on the UK Modern Slavery Act. Based on the results, Statkraft decides on any further actions such as whether or not to pre-qualify a supplier, or undertake due diligence assessments, training or improvement discussions. Corporate responsibility clauses are standard in Statkraft contracts.
While the risk of delivery is based on an industry risk assessment performed by DNV GL and Statkraft, the country risk level is based on the following five international country risk indices: the Yale Environmental Performance Index, the UNDP Multidimensional Poverty Index, the Transparency International Index, The World Bank Ease of Doing Business Index and the International Trade Union Confederation Global Rights Index.
In addition to reviewing and monitoring measures undertaken or commissioned by Statkraft alone, the company participates, together with utility industry peers, in a joint audit program coordinated by Achilles Utilities Nordics and Central Europe (the supplier information management community for the Nordics and Central European Utilities Industry). These audits consist of a comprehensive review of a supplier’s practices, including site visits. 76 audits were conducted in 2018 under this programme and approx. 70 are planned for 2019.
In 2018, Statkraft initiated a series of on-site audits on projects in Norway to check salaries and working conditions for all workers on site. These proved effective and resulted in need for corrective actions to meet Statkraft’s requirements. Further audits will be executed in 2019. Statkraft performs a risk evaluation of its complete supplier base every second year and conduct regular reviews of the company’s procurement practices.
This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes the Group’s slavery and human trafficking statement for the financial year ending 31.12.2018.
Christian Rynning-Tønnesen - President and CEO of Statkraft