Sustainability: A Key Factor in Volvo CE's Framework Contract with Expander

As previously communicated, Volvo Construction Equipment (CE) and Expander, part of the Nord-Lock Group, have agreed to enter into a framework contract, making Expander an official supplier to Volvo CE. Being a sustainability-oriented company, Volvo CE puts a lot of effort into ensuring that its partners' business activities are compliant with a range of sustainability areas.

Volvo CE is not alone in its emphasis on sustainability compliance. Today, supply chain traceability is becoming less of a choice and more of a necessity to meet the growing demands of evolving global supply chain legislation, such as the EU Corporate Sustainability Due Diligence Directive and the German Due Diligence Act.

Digital Reporting and Evaluation of Sustainability
Compliance Sustainability goes beyond environmental issues to include human rights, health and safety, fair and just business conduct, and much more. An effective method of demonstrating sustainability compliance is to set up a profile at a so-called “sustainability evaluation digital platform”. This method provides a comprehensive overview of an organization's sustainability performance, while also allowing for benchmarking against other companies of similar size, region, and business sector.

Volvo CE’s digital platform of choice is SUPPLIERASSURANCE, and its Sustainability Assessment Questionnaire (SAQ 5.0). The platform and evaluation proceedings according to SAQ 5.0 provide the most rigorous supplier due diligence to assure global supply chains, from raw materials to finished products. It also excels when it comes to addressing areas such as human rights, supply chain traceability, business conduct, and other due diligence requirements.

Expander steel material

Well Above Industry Average
After having evaluated and given each area of sustainability a score ranging from 0 to 100 percent, Expander was given an aggregated sustainability score of 71%. How does this compare to companies of similar size in the same industry? The average aggregated SAQ 5.0 score when looking at companies categorized as “manufacturers of steel goods except machinery and devices“ is 61%.

Expander performed well over the majority of evaluated areas, but two areas in particular stand out. The category “corporate leadership” was close to perfect with a score of 97% a score based on the Expander management team’s high level of responsibility in sustainability-related areas, which includes appointing individuals responsible for sustainability compliance. However, we do find one with a 100% score: “responsible sourcing of raw materials.“ This result is due to Expander actively avoiding using metals and other resources from conflict-affected areas which negatively impact health and safety of residents.

Accelerating Sustainable Operations
The process of meeting Volvo CE sustainability requirements provided Expander with new insights into how to improve sustainability even further. The collaboration with Volvo CE, along with its robust requirements on sustainability compliance, is a perfect example of how our industry can move forward to become more sustainable. Given the complexity of SUPPLIERASSURANCE and the SAQ 5.0 proceedings, this article is merely an overview. If you want to know more about sustainability at Expander or the partnership with Volvo CE, please feel free to reach out to:

Christina Hansson, Chief Sustainability Officer at Nord-Lock Group

Robin Persson, Head of Sales at Business Unit Expander

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