KNIF on ethical supply chains, ESG assessments, and sustainable investment priorities
This article is based on an interview with Kåre Rønningen, Sustainability Manager at KNIF. KNIF plays a proactive role in promoting ethical business practices and responsible supply chains. As ESG regulations and sustainability expectations evolve, KNIF combines supplier qualification, risk screening, and financial ESG assessments to ensure its partners meet rising standards. This approach reflects a broader shift in procurement — where transparency, due diligence, and documentation are not just values, but prerequisites for market access.
In order to enter into an agreement with KNIF, it is a prerequisite that the supplier meets the minimum requirements in our "Principles for sustainable business practices". These cover basic requirements for human rights, labor rights, anti-corruption, animal welfare and the environment and are described in our "Requirements for suppliers and partners".
Potential partners must document how they work to reduce the risk of breaches of the principles of sustainable business practices in their own operations and in their supply chain. In cases where we have identified high-risk factors, these are given special focus in the qualification of new partners and in the follow-up of existing partners.
ESG has been a familiar term in recent years, especially in the financial field. When we assess a company's environmental, social and governance performance, we base our assessment on our requirements for suppliers and business partners.
In addition to setting requirements for new partners before entering into agreements, we conduct an annual screening of our partners and engage in what we consider to be a very constructive dialog to improve the conditions in their supply chains. In cases where deficiencies or violations have been discovered, we systematically follow up to ensure that measures have been initiated and implemented both to rectify the damage and to prevent recurrence.
For our partners in the financial sector, we have long focused on ensuring that they maintain a minimum level as a financial company and that they can offer financial products that meet a documented, high level of ESG. This includes assessments of how the players analyse their financial activities and how they put together their funds. It also includes the governance structures the company has established and how they follow up and report on these.
The financial field has seen tremendous development in this area over the past two to three years, and we expect even more when the EU taxonomy is in place.
KNIF's members are voluntary and non-profit organisations, and this group expects high standards for responsible investment and ethical financial activities. It is a prerequisite for our partners that they can offer financial products with a high ethical profile.
We also maintain an active dialog with our partners, and have on several occasions experienced that positive pressure, often in collaboration with our members, has led to our partners raising theESG level of their financial products.
At KNIF, we believe that sustainability will become an even clearer competitive advantage in the years to come.
There are several drivers for sustainability, including customer demands, fear of reputational damage, public procurement requirements, existing and future legislation and the EU taxonomy that is being developed.
Sustainable operations and good reporting will be a prerequisite for operating in more markets. Companies that do not meet reporting requirements or do not achieve a satisfactory level from a sustainability perspective will not be considered in procurement processes by a number of customer groups, including the public sector.
It is expected that a poor classification within the upcoming EU taxonomy will affect both access to and price levels for debt financing, and may also limit access to investors. If the new EthicsInformation Act is adopted, companies without adequate processes and documentation will be operating at odds with the law.
KNIF makes everyday life easier for voluntary and non-profit organisations. Through Knif Innkjøp, they have access to over130 purchasing agreements with low prices that are tailored to the organisations' needs. In 2020, the member organizations purchased goods andservices for approximately NOK 500 million. The financial agreements cover justover NOK 17 billion in loans, deposits, asset management services and managedcapital under defined contribution pensions.
“KNIF is a driving force for sustainability inthe value chains we are part of. We work actively with our own operations and our partners to minimise negative impacts on people, society and the environment.”
Read more at knif.no
