Sourcing

We work to continuously improve the environmental footprint and social impact of our supply chain, primarily by choosing suppliers that meet category-specific internationally recognised standards.

Our Responsible Sourcing Programme follows the guidance of the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

Responsible Sourcing Programme

We set out the principles and standards for working with our business partners and mitigating sustainability risks in our supply chain through our Responsible Sourcing Programme (RSP). The programme is based on three foundational policies:

• Pandora Supplier Code of Conduct
• Responsible Sourcing Policy
• Materials Standard

Read more about and access our policies and standards here.

2 Find the international versions here

Engaging our suppliers

To ensure we work with suppliers that are aligned with our values and sustainability ambitions, we implement a thorough due diligence process when onboarding new suppliers. The process includes signing of the Pandora Supplier Code of Conduct and additional sustainability clauses, a screening and risk assessment, as well as an on-site audit.

We view audits as a starting point for engaging suppliers on the importance of decent working conditions and robust environmental management systems. Our suppliers are screened according to identified risk criteria. Suppliers that are considered high-risk, are required to undertake a biannual third-party audit or confirm Pandora-accepted certifications that demonstrate alignment with our standards.

The audits include desktop research, on-site reviews and interviews with workers. Audit results are shared with suppliers and in case of non-conformities and we work with our suppliers on an improvement plan aiming to resolve any identified issues. We also provide support with root cause analysis and remediation of findings.

Although audits are a useful tool to understand a supplier’s management systems, we recognise that they provide a snapshot view. We therefore seek to engage with suppliers from a holistic sustainability perspective while building a relationship of trust.