A Commitment to Responsible Sourcing

At Eltwin, supplier assessments have historically been conducted with a primary focus on financial aspects. However, with the introduction of Worldfavor, our approach has significantly evolved to incorporate a broader range of evaluation criteria. This transition was initiated by our parent company, NIBE Industrier AB, emphasizing the need for a more holistic supplier assessment framework.

According to Ulrik Petersen, Head of Purchasing "Worldfavor has given us invaluable insights into our supply chain, enabling us to assess our suppliers not only based on financial aspects but also on sustainability, ethics, and quality. This tool helps us ensure that we work with responsible partners who align with Eltwin’s values and long-term goals."

Implementation of Worldfavor
In the initial stages, we prioritized assessing Eltwin’s largest direct suppliers based on financial significance. Our dedicated employee Rasmus Runge is responsible for entering supplier data into the Worldfavor system and gathering relevant information from suppliers to facilitate the evaluation process.

Worldfavor operates by first categorizing suppliers by geographical location, identifying whether they operate in high- or low-risk countries. This classification determines the level of scrutiny required. The assessment begins with a standard set of questions, which then adapt based on the supplier’s region, industry, and business practices. This dynamic approach ensures a focused and relevant assessment.

The parameters considered in the assessment now extend beyond financial stability to include:

• Environmental factors – assessing sustainability efforts and environmental impact.
• Social and ethical considerations – ensuring compliance with labor laws, human rights standards, and ethical business conduct.
• Quality assurance – maintaining the highest standards in product and service quality.

Risk assessment and mitigation
Based on the supplier’s responses, Worldfavor generates a final assessment that categorizes suppliers into three risk levels: low, medium, or high. If a supplier is deemed high-risk, it becomes Eltwin’s responsibility to develop an action plan in collaboration with the supplier. This plan aims to mitigate risks and transition the supplier to a lower risk category through improved practices and compliance measures.

A commitment to responsible sourcing
At Eltwin we have enhanced our supplier evaluation framework to align with modern standards of sustainability, ethics, and quality through Worldfavor. This structured and data-driven approach enables us to make informed decisions, foster stronger supplier relationships, and ensure responsible sourcing that aligns with our values.

Our purchasing department has set a goal to assess 85% of our largest direct suppliers in 2024. This target was successfully reached in the spring of 2024, with 90% of the largest direct suppliers evaluated. Moving forward, we plan to extend assessments to indirect and service suppliers. This marks the next step in Eltwin’s commitment to comprehensive supplier assessments and continuous improvement.