Regnskog

Introduction

In August 2021, the Swedish National Agency for Public Procurement, Adda Central Purchasing Body and the Swedish Regions' Secretariat for Sustainable Procurement started work on revising our contract terms for sustainable supply chains. This work has led to draft contract terms for sustainability due diligence, to be used together with commitments at the core level (ILO core conventions) or advanced level (sustainable supply chains), as well as support material for monitoring: self-assessment template, assessment matrix, office audit template, deviation management template and factory audit template. The terms, guidance and support material are available in Swedish and English. A reference group consisting of about 40 organisations from different sectors has also participated in the work.

In the video below (in Swedish), we present our revision work and the main changes.

 

 

 

 

 

 

 

 

We are now looking forward to comments on the draft from anyone who is in any way involved in or otherwise affected by public procurement. We need your comments by 13 May. Use the answer form below and send your comments to lisa.sennstrom@uhmynd.se.

Adda Central Purchasing Body and the Regions' National Secretariat for Sustainable Procurement have also mapped the commitments against the Global Goals, compiled country risks based on four indices and listed useful sources for the work with due diligence.

During the consultation period, we will also develop the guidance.

Obligation under Swedish law

Contracting organisations have an obligation to impose labour conditions in accordance with the ILO core conventions if this is "necessary", that is if there is a risk of unfair working conditions. Unfair working conditions refer to violations of the rights and prohibitions in the core conventions.

Swedish procurement legislation contains provisions on labour conditions according to the ILO core conventions in:  

  • the Public Procurement Act (2016:1145) chapter 17 section 4 (LOU)

  • the Utilities Procurement Act (2016:1146) chapter 16 section 4 (LUF)

  • the Act (2016:1147) on Procurement of Concessions chapter 14 section  4 (LUK)

There are no corresponding provisions in the Act (2011:1029) on Defence and Security Procurement (LUFS) or in the Act (2008:962) on System of Choice (LOV). According to the National Agency's assessment there are, however, no obstacles to imposing labour conditions under these laws, as long as it is done in accordance with the basic procurement principles of non-discrimination, equal treatment, proportionality, transparency and mutual recognition.

In addition to the obligation to impose labour conditions in accordance with the ILO core conventions, contracting organisations may impose environmental, social, labour or other conditions in accordance with the provisions for contract performance (chapter 17 section 1 LOU, chapter 16 section 1 LUF, chapter 14 section 1 LUK ). Corresponding provisions can be found in chapter 7 section 12 LUFS and chapter 4 section 2 LOV.

 

Connection to what is purchased

Contract terms must refer to the contract object, which means the terms must be connected to what is purchased. This can be inferred from chapter 17 section 1 part 2 LOU with reference to chapter 16 section 2 part 2 LOU:

 

"An award criterion is considered to be connected to the supplies, services or works to be purchased if the criterion in some way relates to the supplies, services or works at any time during their life cycle."

 

When is it "necessary"?  ​

 

​Imposing requirements for sustainability due diligence based on the ILO core conventions or sustainable supply chains is basically always necessary when you have an international supply chain. This principle primarily applies to goods agreements, but certain types of service agreements pre-suppose that the supplier purchases goods from other countries. One such example is paving work, where the crude oil for the asphalt (bitumen) comes from countries such as Canada, Russia or Venezuela.​

 

If the procurement only applies to a service in Sweden, you should primarily consider imposing requirements such as labour conditions according to collective bargaining agreements, requirements that aim to achieve compliance with the Discrimination Act's requirements on active measures, and on systematic work environment management. For several contract objects, however, it is often relevant to impose requirements on the basis of both labour conditions according to collective bargaining agreements and the ILO core conventions or sustainable supply chains. Examples are paving work, construction contracts and cleaning services.

​You can examine whether it is relevant to impose requirements based on the ILO core conventions or sustainable supply chains through the test below, for the goods sold or used in the performance of the contract:

 

[The test is not visible in the website's mobile version.]

Source of information

Total risk score

Assessment criteria

Country risk score final manufacturing:  

Score 321-400 (countries with very low risk) = + 1

Score 241-320 (low risk countries) = + 2

Score 161-240 (risk countries) = + 3

Score 81-160 (high risk countries) = + 4

Score 0-80 (countries with very high risk) = + 5

High-risk production (extraction, mining and natural resources; agricultural and food production; infrastructure and construction; textiles and clothing manufacturing) = + 1

 

Reports on forced labour and/or child labour in the supply chain = + 1

 

Presence of minerals from conflict-affected areas and high-risk areas in the product = + 1

 

Transformation of habitats in the supply chain through e.g. deforestation, either for the sake of the raw material itself or to create monocultures (especially common for palm oil, soy, cocoa, rubber, coffee, wood fiber and cattle) = + 1

Stakeholder dialogue with potential suppliers and industry organisations to determine where the goods are manufactured.

 

Country risk analysis based on the Worldwide Governance Indicators, the ITUC Global Rights Index, the Environmental Performance Index and the Corruption Perception Index.

Information/reports from the media and credible and independent experts such as non-governmental organisations and civil society organisations, human rights defenders, trade unions and public authorities.

If the total risk score is at least 3, the risks should be prevented and mitigated.

How do the terms correlate to other requirements?  ​

If you impose specific terms and requirements based on the situation in Sweden or based on the goods or service, while also imposing requirements based on the ILO core conventions or sustainable supply chains, the terms for due diligence becomes a minimum level that shall also be forwarded in the supply chain. If higher requirements have been imposed for specific risks based on the situation in Sweden or based on the goods or service, these shall apply. If no other requirements have been imposed, the terms for due diligence apply to both the supplier's own operations (often Sweden) and in the supply chain (often internationally).  

How can the terms be applied?  ​

The contractual terms for due diligence can be used for all procurements, regardless of which procurement law is applied. The terms must be supplemented and completed by the contracting organisation and introduced in their entirety in the procurement documents, in order to maintain the principle of transparency. Tasks that need to be supplemented are marked with square brackets, for example [the contracting organisation].

The terms for due diligence are terms for contract performance (special contract terms). Contract terms do not have to be met when the supplier submits its tender, but must be met when the contract is fulfilled. Unless otherwise noted, they enter into force when the contract enters into force.