Supply chain

Suppliers play a significant role in the supply chain of Caverion
as most of the technical systems and solutions designed and 
installed by Caverion include components, materials or services 
purchased from suppliers.

Purchasing from best suppliers

Caverion has several common suppliers serving the Group’s 
demand throughout our operating countries. Major part of 
purchasing is done locally in our operating countries using the 
selected suppliers. Due to business demand, we put high value 
to the close location of our suppliers and their ability to react 
rapidly to changing business demands. As a result, the majority 
of our suppliers are located in the countries in which Caverion 
is operating.

Business ethics in supplier relationships

Caverion is aiming to build long-term relationships with its 
suppliers. All suppliers are treated equally and honestly following
the applicable laws and regulations. We do not tolerate any 
forms of bribery or other illegal payments in the relationships 
with our suppliers. We regularly evaluate our suppliers, follow 
their performance, and assess potential risks. Caverion utilises 
a separate Supplier Code of Conduct with its suppliers.

According to the Supplier Code of Conduct, suppliers,
subcontractors, and other business partners shall: 

• Respect human rights arising out of international treaties, 
in particular the United Nations’ Universal Declaration of 
Human Rights; 
• Comply with fundamental conventions as defined by the
International Labour Organization; 
• Ascertain that its own suppliers comply with requirements
that meet or exceed the requirements laid down in
Caverion’s Supplier Code of Conduct.

Caverion operates primarily in developed, transparent markets. 
Potential risks relate to the uncertainty or unawareness of 
how subcontractors conduct their daily business. The risks of 
breach in the area of human rights are predominantly located 
further away in Caverion’s supply chain. Caverion has a web-
based reporting channel through which its employees can 
confidentially report their observations of suspected misconduct.
In addition, reports can be submitted via email that is read by 
the Chief Compliance Officer.

Caverion’s Supplier Code of Conduct was revised in September
2018. Implementation of the revised version started already 
during the last quarter of 2018 and will continue during 2019.
At the end of 2018, around half of Caverion’s total spend was 
already covered by the Supplier Code of Conduct. In addition,
there are some supplier relationships in which the business 
ethics and standards are governed by the supplier’s Code of 
Conduct that meets Caverion’s requirements.