A responsible value chain

Working with business partners who share Atlas Copco Group’s respect for human rights and high standards regarding the environment, safety, quality and business conduct is central to efficiently manage risks and enhance sustainability along the value chain. Many countries struggle with corruption, labor issues, and human rights abuses. Environmental standards and legal frameworks also vary widely from one country to another. These issues may arise for a number of reasons, such as the quality of infrastructure, legislation, or business practices. This risk is even higher in conflict zones, where there is little or no rule of law.

We continually strengthen our business practices in complex markets through dialogue aimed at understanding and reducing the risks involved. We believe that we can have a positive impact. Together with our partners and other stakeholders, we monitor developments and look for ways to improve the situation.

Atlas Copco Group welcomes input and feedback from all stakeholders. Stakeholders can report suspected violations to our  Code of Conduct or to our misconduct reporting system Atlas Copco Group SpeakUp.

Mining and trading in certain raw materials can help finance armed groups in areas associated with human rights violations. Although Atlas Copco Group does not procure directly from smelters/refineries, some parts of our supply chain do. Atlas Copco Group is not in the scope of Dodd-Frank Act or the EU regulation 2017/821, but based on concerns of human rights abuse, including forced labor, human trafficking, and child labor, and to support our customers in fulfilling their obligations according to these Acts, we take measures to detect and prevent the use of conflict minerals in our supply chain.

Atlas Copco Group requires our direct suppliers to commit to responsible sourcing of all minerals used in the parts and products they sell to us. This commitment is exercised through minerals data collection and due diligence, every year. Moreover, all significant suppliers must sign the Code of Conduct which includes an article on responsible sourcing.

We have a comprehensive program to ensure responsible sourcing and investigate the possible use of conflict minerals in the components used in our products. The program covers tin, tantalum, tungsten, gold, and cobalt (added in 2020). Data collection and due diligence using the Responsible Minerals Initiative (RMI) guidelines and Cobalt Reporting Template (CRT) are rolled out continuously. Atlas Copco Group is a member of the RMI and adheres to its guidelines by encouraging suppliers to source from smelters verified by a third party such as RMI’s Responsible Minerals Assurance Process (RMAP). We also commit to transparency by submitting reporting templates to customers about smelters in the supply chain and collaborate with stakeholders.