Jets Group’s Responsible Supply Chain

Jets Group’s responsible supply chain covers the topics: Supply Chain, Human and workers’ rights as well as Local workforce and wages.

We work with our suppliers for continuous improvement and to mitigate potential negative impacts to people in our supply chain, and work actively to fulfil UN Sustainable Development Goals number 8 and 12.

JETS image Background Ocean web
UN 12 and combined

Why it matters

Sustainability is one of the pillars of the Jets Group business model. By delivering eco-efficient vacuum technology and waste handling we help businesses all over the world to minimize their environmental footprint. Our main goal is to waste less of one of the planet’s key resources, fresh water. Jets® technology helps reduce water usage by up to 90%. Lower consumption, lower emissions, and less waste of key resources.

Our more than 100 suppliers and partners are important contributors to help achieve our goals. Transparency and dialogue are critical for success. We believe that our ESG-efforts will contribute to future profitable growth, and we will continue our cooperation with our partners throughout our supply chain to minimize potential negative effects on the environment and our surroundings. We will work for transparency and traceability of key sustainability data for our products.

Our approach

A sustainable supply chain is an integral part of the group’s ambitions and long-term strategy.

We have established a supplier due diligence process to select, onboard and develop suppliers. Jets Group's supplier code of conduct, reviewed and updated 2022, will help set clear expectations and define requirements and frequency of supplier audits from a risk management point of view.

Our approach to responsible sourcing is based on the OECD Due Diligence Guidance for Responsible Business Conduct and can be summarized in 3 steps:

1. Mapping of risks

The goal of the supply chain due diligence process is to map and assess risk. We have established a tool that assesses suppliers’ location or geographic presence with respect to global human rights and corruption indexes. This, together with annual expenditure and track record of cooperation with the respective suppliers, allows us to prioritize our audit efforts towards suppliers with presumably higher risk and where we consider having the greatest opportunity to influence.

We will continue improving our risk mapping procedures to get a more holistic view of our entire supply chain, from extraction of raw material to manufacturers of sub-components and differentiate our audit process on high -, medium - and low risk suppliers.

2. Clear expectations

The Jets Group’s supplier code of conduct clearly states the minimum sustainability requirements for all our suppliers. The code is based on internationally recognized standards such as the Universal Declaration of Human Rights, UN Global Compact and the ILO Core Conventions, among others.

3. Support and development

Jets Group has conducted a materiality assessment to identify which sustainability areas are of key importance to the group and its stakeholders. The assessment sets a direction to strengthen our positive influence, and how to reduce our negative contribution within the ESG-areas.

We aspire to develop our supply chain and strengthen our positive influence on social aspects in the countries in which we operate directly or indirectly. We focus our attention on health, working environment and safety, and all our activities must adhere to the group’s policy, guidelines and local jurisdiction. We target clear policies and goals related to competence, inclusive employment and personal development, and we work to prevent all forms of discrimination.

In the case of a policy breach, our approach is to establish a closer dialogue around the disturbing issues. Through cooperation with suppliers, we seek to establish a plan to improve critical conditions. In the case of unsatisfying progress on jointly defined actions and/or lack of understanding from our partners, we will terminate the cooperation as a last resort.

Jets Group’s supply chain

The supply chain process is governed through the group’s supplier code of conduct. The code was last updated in 2022 and covers topics such as human rights, working conditions, environmental - and climate impact and risk.

The code’s main principles will be included in, and binding through contractual clauses to ensure that suppliers and business partners reflect the values and principles that the Jets Group promotes.

Jets illustration supply chain 0622 narrow
Illustration Due diligence OECD model

The supplier self-assessment questionnaire was updated in 2022 and will strengthen the group’s integrity due diligence efforts. In 2022 the group collected information from suppliers representing approximately 75% of the annual purchasing cost. The group applies 3 global indexes to assess potential negative impact: ITUC Global Rights Index, Corruption Perceptions Index and Human Rights Index.

The group has also created a comprehensive audit plan that targets the business activity and interaction with suppliers. One of several assessment criteria in this plan is integrity due diligence. The group is in the process of implementing the new routines for assessment and onboarding of new suppliers.

Country risk based on global human rights and corruption indexes

The Jets Group has more than 100 active suppliers globally. More than 80% of all procurement volume (2022) is sourced from suppliers located in Norway and Latvia. 11% of procurement volume is linked to suppliers classified as elevated risk.

The Jets Group has sales representatives on all continents. 30 % of the sales volume is generated by representatives located in countries classified as elevated risk.

Map illustrating each country’s risk level

Jets illustration map world borders risk 3 colours
The map illustrates the Jets Group risk assessment based on 3 selected global indexes, each with 1/3 weight in the overall country risk score. Suppliers and representatives are assessed based on multiple criteria such as country risk, manufacturing processes, length of cooperation with Jets, audits conducted etc. Sources: 2021 Corruption Perception Index - Human Righs - Our World in Data -
Jets illustration jets key sourcing countries

Identified risks, negative findings and actions implemented

Per year end 2022, the Jets Group has completed the assessment of all 1st line suppliers and has started the work to assess sub suppliers of our sourcing partners. This is tedious work and will be ongoing throughout 2023. The group has also completed a 1st line assessment of sales representatives in 2022 and will expand its focus to a broader part of the value chain in 2023.

The assessments conducted by the group uncovered some suppliers and sales representatives of higher risk. The integrity due diligence conducted in 2022 was focused on these partners and new information from suppliers was obtained in the process. So far, no negative findings have been identified. The audit plan, implementation of new routines and contract templates will strengthen our ability to identify cases that are in breach with the Jets Group’s policies.

Jets Vacuum AS annual report 2022 (in Norwegian)

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