Atlas Copco 2008 – tough ending to a record year Annual Report ...

Copco teams directly at the suppliers’ sites, or through verificationof the suppliers’ own reports. 90% of the suppliers evaluated froman environmental perspective were approved. They were ratedaverage, good, or exceptional. 10% of the suppliers were conditionallyapproved and will be monitored by Atlas Copco. Thesame figures related to the social evaluations were 96% and 4%respectively.In 2008, three suppliers were rejected for environmental reasonsand one for social, health and safety reasons. The supplierswere rejected, or not approved, because they were deemed as notliving up to Atlas Copco requirements and not willing to improve.Restricted or prohibited substancesAtlas Copco keeps a list of substances whose use are either prohibitedor restricted due to their potential negative impact onhealth or the environment. Restricted substances should bereplaced as soon as it is possible from a technical and financialperspective. Prohibited substances are not allowed in the Group’sproducts or processes. Suppliers’ use of such substances is regularlychecked, and if prohibited substances should be found, theymust immediately be replaced with approved alternatives. Thelists are continuously revised according to applicable legislation,including REACH.Construction and mining supplier in South AfricaAtlas Copco Secoroc evaluated Perfection Tool and Dieresulting in a number of environmental and social improvements.Atlas Copco Secoroc, a product company in the Secorocdivision, is located near Johannesburg. The company producesdrilling consumables for the local and global market and hostsa distribution center for the supply of all Secoroc products tosouthern Africa customer centers. Its operations are both ISO9001 and 14001 certified.Perfection Tool and Die, a private, family-run business,performs turning and milling of tapered and threaded buttonbits for Atlas Copco Secoroc. It employs 76 people and operatesin Boksburg North, South Africa. It has not yet implementeda quality or environmental management system, butplans to do so in the near future.Atlas Copco Secoroc performed a full Safety HealthEnvironmental Quality and Social assessment at PerfectionTool and Die. The evaluation identified eight non-compliancesand 15 suggestions for improvements.At the follow-up assessment the result was very positive;Perfection Tool and Die showed a high level of commitmentand addressed all non-compliances and a number of improvementsuggestions. The meeting also resulted in a report withsome new findings, and a new date for a full-scope assessmentwas decided by the two parties.Prior to the first evaluation the supplier had poor knowledgeof the applicable laws and regulations, as well as of AtlasCopco’s ten-point checklist. However, Perfection Tool and Diemanagers said they appreciated the assessments and the supportreceived in addressing needed improvements.In Atlas Copco’s view, the company has remarkablyimproved its social and environmental performance. The managershave implemented the advice they received from AtlasCopco and in some cases customized their own solutions atlow cost, of which they are very proud. Atlas Copco will continueto assess the supplier on an annual basis.Atlas Copco 2008 113