PROCUREMENT POLICY AND SUPPLIER ASSESSMENT
It is HB Grandi’s policy to support activities in Vopnafjörður, Akranes and Reykjavík that in some manner relate to the company or are important to the communities in the area in question. However, HB Grandi makes the demand that the key issues in the company’s selection of suppliers and service providers are quality, service and competitive prices. When these three aspects are taken together, they lead the company to the most favorable price each time, maximum quality and improved services.
SUPPLIERS IN THE LOCAL COMMUNITY
HB Grandi defines Iceland as its local community. The proportion of Icelandic suppliers for purchased operating costs, goods and services is 96% of the total purchases of the company in 2017, excluding the renewal of the vessel fleet. There are many reasons for this. HB Grandi, however, has in most cases made the requirement that suppliers maintain a warehouse for the operation of the company and that the delivery is in accordance with use each time. All costs and wastage as regards supplies, therefore, are kept to a minimum. In addition, the locations of the company outside Reykjavík, in Akranes and Vopnafjörður, mean that HB Grandi strives to seek out and use local services. The company is aware that its support of the local community is of great importance for the company and its employees.
HB Grandi is in an adoption phase with purchases over the Internet through a system named Timian. This ensures that suppliers are selected based on the quality of the goods that they offer and the services that HB Grandi requires. Thereafter, the competitiveness of the price decides whether the company buys from one supplier rather than another.
ENVIRONMENTAL IMPACT OF SUPPLIERS
A part of the project “The cleaner value chain in fisheries” is the collection of information on the environmental impact of the services and goods that HB Grandi purchases from its suppliers. Such information collection allows HB Grandi to build up knowledge of the emissions of all the company’s operating units and all its value chain. Thus, the company can make an informed decision on doing business with the suppliers who cause the least environmental impact and thereby effectively reduce the negative environmental effects from the operation of the company.
In 2016, HB Grandi began to include a provision on environmental issues in its largest procurement agreements. The provision is as follows:
“HB Grandi is a party to the climate declaration of Festa, the Centre for Corporate Social Responsibility, and the City of Reykjavík that was signed by 104 companies in Höfði in 2015. By signing the declaration, the company has undertaken to reduce the release of greenhouse gases in coming years. A part of this includes mapping the effects of service providers and their operation on the operation of HB Grandi, which will be reflected in the environmental results that the company publishes each year. To support these goals, the service providers will undertake, at the beginning of each year or on a regular basis, to provide information on their environmental impact on the operation of HB Grandi during the preceding year.”
At present, there are eleven agreements with the largest suppliers that contain this provision. In proportion to the annual operating expenses of the company, this represents approximately 21% of all purchases.
