Sustainability report

Accounting for CSR in framework agreements

We offer customers easy-to-use services and framework agreements featuring CSR as a built-in element. Although we make every effort to take extensive account CSR, the fact remains that it is much easier to factor environmental and financial considerations into products and services than to account for social responsibility.

Hansel’s contracts comply with government guidelines and policies, such as the government resolution, published in June 2013, on the promotion of sustainable energy and environmental solutions in public procurement. This resolution provides guidelines on emissions for vehicles used by the government, and principles concerning energy procurement, among other issues.

Environmental issues

Hansel has included environmental aspects in its framework agreements for several years. For assistance, Hansel has drawn on other criteria, such as Motiva’s eco-friendliness and the European Commission’s Green Public Procurement criteria.

Environmental criteria have been established for computers, for example; these include a requirement to fulfil Energy Star level energy efficiency standards. Attention is paid to recycling and decommissioning, and each supplier is required to pick up old equipment from customers for recycling, regardless of what make is involved, at the prices given in the contract.

Framework agreements allow Hansel’s customers to acquire low-emission vehicles with carbon dioxide emissions below 100 g/km. All-electric vehicles and plug-in hybrids are also available, with extremely low consumption and carbon dioxide emissions. The vehicle selection offered in the contract is automatically updated, allowing us to offer our customers the latest and most ecological solutions on every occasion.

Environmental factors are highlighted in the Office Furniture framework agreement. All wood and wood-based materials must derive from legally harvested timber, and at least 70% of the materials must come from forests with a documented system of sustainable management. There are separate environmental criteria for the plastic, glues, textiles and metal parts in furniture. The suppliers are required to offer a furniture recycling service.

It is an objective of framework agreements to account for the recycling of discontinued products or packaging materials whenever possible. Appropriate recycling prevents the discharge of harmful substances into nature and reduces the environmental burden caused by the use of raw materials and non-renewable natural resources.

Financial aspects

Combating grey economy is one of the Finnish government’s spearhead projects addressing financial responsibility. The government’s actions in this respect focus on the grey market in labour-intensive areas and on a reform of the Act on the Contractor’s Obligations.

The main labour-intensive areas from Hansel’s point of view include the hospitality industry, the transport industry, and the cleaning and security services industries.

Hansel strives to account for financial responsibility aspects as comprehensively as possible in its framework agreements. In this regard, suppliers taking part in the tendering process are required to have fulfilled their social obligations properly: in other words, they must have paid their taxes and social security contributions, and comply with statutory demands related to the environment, health and safety, working conditions and terms of employment.

In procurement that falls within the scope of the Act on the Contractor’s Obligations, it is additionally required that selected contract suppliers provide regular reports on their tax payments and the collective labour agreements under which they work, as well as proof of registration in the trade register, prepayment register, VAT register and employer register.

Supervision of contract suppliers’ financial and legal status is performed by an external organisation. Hansel is immediately informed if a supplier’s financial position weakens or its legal structure changes.

Social responsibility

The basic principles of public procurement are applied to the inclusion of social responsibility aspects. All criteria must be fair and non-discriminatory, mindful of the principle of proportionality and openly communicated. The social elements must be related to the object of procurement, and be significant in terms of procurement implementation.

In practice, social elements may be incorporated in the terms and conditions of the contract – e.g., by requiring that the supplier commit to the key labour and human right conventions of the International Labour Organization (ILO).

On a few occasions, such as in the competitive tendering process for the Computers and Servers framework agreements, Hansel has required tenderers to present a voluntary statement on their adherence to the ILO conventions.

Hansel has conducted a risk analysis on the social responsibility of its framework agreements. This involved placing the agreements in a risk matrix, with the value of the contract in euros and the size of the social risk involved expressed as variables. The objective was to identify the areas and framework agreements involving a high risk from a social responsibility point of view.

The analysis showed that the highest social risk lies in the framework agreements made with specific international goods suppliers and Finnish service providers. With regard to the international suppliers of goods, the high risk was linked to labour-intensive production practices, a large number of subcontractors and long supply chains.

Social risks tend to grow when goods are manufactured in countries where little attention is paid to workers’ rights, and when raw materials are mostly sourced from outside Europe. With regard to Finnish service providers, the risk factors were related to labour-intensive services, a large number of subcontractors and low-income areas.

Hansel has around ten framework agreements whose placement in the matrix indicated high or very high social risk. Development efforts based on the risk analysis are under way at Hansel, with the aim of creating suitable models for reducing the risks involved in the identified areas.