Supply Chain Managementconveys our expectation that suppliers will uphold our social, ethical, and environmental standards in conducting their businesses, including human rights and working conditions, environment, and business conduct and ethics.
Supply Chain Audits
Autoliv has a global team to work with the quality management of our supply base. Our Supplier Quality Department and Purchasing Department work closely together, including such mandatory steps as the qualification of a new supplier or new supplier site and pre-qualification audits. Once a supplier has been approved, we have a three-year audit cycle for the process audit. These audits ensure that our suppliers are adhering to Autoliv’s standards as well as to applicable local laws and regulations and establish a process for working with suppliers that fail to meet our policies and standards. Sustainability criteria are included as one module in the direct material supplier quality audits.
Autoliv’s policy on Conflict Minerals (the “Conflict Minerals Policy”) provides further clarification to the principles of the Standards of Business Conduct and Ethics regarding the illegal trade of natural resources, in particular certain minerals, known as “conflict minerals”. Pursuant to SEC rules, conflict minerals include certain minerals that originated in the Democratic Republic of Congo or an adjoining country and are sold to benefit groups financing armed conflicts in those regions. As part of our supply chain processes, we work with our suppliers to improve traceability of minerals and ensure responsible sourcing of components, parts, or products containing tin, tantalum, tungsten, and/or gold. We have incorporated the principles of this policy into the requirements of our contractually binding Supplier Manual and we work with our suppliers to increase transparency in the supply chain. Autoliv supports industry initiatives, such as the Conflict Free Smelter Program (CFS), to validate that the metals used in our products are not contributing to conflict and come from sustainable sources.