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Reinforcing supply chain management

Due diligence sails up as a major field of priority in Solvang’s corporate governance, to ensure the impact of our values in a new regulatory regime.

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In addition to Solvang’s consistent efforts to minimize the effects of corruption, human rights breaches and other negative trends in global trade and production, we have made concrete initiatives to ensure compliance as a minimum, throughout our global supply chain, starting in 2022.

“The Transparency Act has very timely pointed out third party vendors and affiliated companies as important targets of our diligence”, states Mrs. Tanja Øvrebø Hunshamar, supply chain manager at Solvang.

Mandatory prequalification

The pretext of our enhanced supply chain management vis á vis human rights, workers’ conditions and transparency, is new international regulation. Solvang has choosen to sail under the Norwegian Flag (NIS) , ensuring the highest possible quality of operation. At the current stage, our supply chain department is being strengthened with extra capacity to perform due diligence reporting towards our network for suppliers.
“We will carry out a prequalification of all third-party vendors entering into our supplier register”, states Mrs. Hunshamar. She underlines the importance of a fact-based, fair and consistent practice of evaluations at all times. As a member of the Norwegian procurement organization Incentra, Solvang’s risk of weak supplier standards or conflicting practices by a third party organization has been reduced substantially.

Framework of governance

As a global supplier of LPG and petrochemical tonnage, Solvang maintains a working relationship with a diversity of stakeholders in various jurisdictions. Hence, clearly defined routines for performing due diligence assessments, as well as rules for communication with suppliers, as well as reporting issues, are being arranged for.

In 2023, Solvang will conclude an analysis pointing out potential measures to include in governing documents. As a means to attain best practice, we will refer to renown human rights standards as well as due diligence assessments.

Risk management

The characteristics of global transport accentuate the need of overall risk assessment procedures. At Solvang, we are currently (2023) gathering information about negative impacts and the risk for such impacts, towards human and workers’ right in our value chain. The concrete risks which we discover in the assessment, will be compared to general information about risks in those countries and businesses. Together, we will use the knowledge base to manage risk in the best possible way.

Plan of action

The combined knowledge base which we assemble about specific and general threats towards our value chain, will be deployed for operational purposes within a plan of action. This plan will guide Solvang in the process of screening third party vendors for follow-up audits. The plan will be executive to the extent that it offers methodology for qualifying our supply chain, and identifies an anticipated value of implementing measures.

Among these measures, which will be presented in detail starting 2023, the stakeholder dialogue will stand central. As a major value-driven organization proposing mutual respect, team spirit, and quality as principles to enhance our common good, Solvang stands ready to assist all suppliers who share our objective of continuous improvement.

The Transparency Act has very timely pointed out third party vendors and affiliated companies as important targets of our diligence

Tanja Øvrebø Hunshamar
Supply chain manager