In Patria, the Group level procurement function, the other Group functions responsible for their own procurement as well as the Business Unit level procurement functions and responsible persons control and develop the strategic purchasing-, and procurement-, logistics- and subcontractor networks in a manner that produces the most cost-effective value to Patria and its customers while ensuring quality and ethical, transparent and compliant business conduct.

It is of essential importance for Patria to ensure that it only does business with reliable suppliers and subcontractors whose business conduct follows similar principles than those set forth in Patria´s Ethical Code of Conduct. To ensure that its suppliers and subcontractors run their business in a sustainable, transparent, ethical and compliant manner, Patria has a Supplier Code of Conduct that sets forth the requirements of Patria to its suppliers.

Supplier selection and management

As the Patria Business Units´ business and operations are diverse, the Business Units have their own processes regarding supplier selection and management. There are, however, certain principles that are the same for Patria Group and all its Business Units. These principles relate to ethics, transparency and compliance standards that are expected from Patria suppliers. The expectations are set forth in the Patria Supplier Code of Conduct.

The procurement functions and persons responsible for procurement are in charge of supplier selection, approval and management, which generally include reviewing and assessing, among other things, the supplier’s ownership structure, financial standing, organization, quality and standardization in addition to the ethics and compliance processes and principles of the supplier as well as potential issues concerning legal proceedings or investigations. Patria also has screening tools in use to do online screening of its suppliers and business partners.

Patria´s General Terms of Supply, Patria Supplier Code of Conduct and the supplier contracts include clauses stating that the Supplier must comply with all related laws and regulations and conduct their business in a transparent, ethical and compliant manner, as defined in the Patria Ethical Code of Conduct and Supplier Code of Conduct.

In case any risks are recognized during the selection process or afterwards during management of the supplier, the risks are evaluated and appropriately mitigated in the contract or by other means.

The Business Units monitor their suppliers and perform supplier audits. The supplier audit processes are also Business Unit specific and audits are performed according to schedules set forth by the respective Business Units.