Actions and resources for workers in the value chain (S2-4)
We are committed to uphold high ethical standards and conduct business responsibly in accordance with UN Guiding Principles on Business and Human Rights.
Workers in upstream value chain
Our key actions for workers in the upstream value chain are set out in Epiroc’s Responsible Sourcing Due Diligence Framework (DD Framework), with the main elements described in the following sections. It is designed to identify, assess and manage both actual and potential material impacts on value chain workers upstream, including service providers like cleaners and security personnel, as well as factory workers in our supply chain. Epiroc strives to develop and maintain long-term relations with preferred suppliers for mutual benefits to enable sourcing teams to shift from reactive, transactional buying to proactive, strategic supplier management, driving value across cost, quality, innovation, and sustainability. Such practices allow for better planning and cooperation which may also lower the risks for workers in the value chain.
Epiroc sourcing process
Responsible Sourcing Due Diligence Framework
The primary purpose of the DD Framework is to consolidate and enhance Epiroc’s efforts in identifying and reducing harm to workers and the environment within the supply chain. It focuses on human rights and labor rights, including forced labor, child labor, human trafficking, health and safety, working hours, wages and freedom of association. Epiroc distinguishes between direct suppliers who provide goods to produce Epiroc products (e.g., steel supplier), and indirect suppliers who provide goods and services for Epiroc’s operations (e.g., workwear and security personnel).
Key personnel in Epiroc divisions and entities are responsible for adhering to and implementing the procedures described in the DD Framework, supported by Responsible Sourcing team. Resources dedicated to responsible sourcing are not tracked independently; instead, they are incorporated into the overall expenditures and budgets of relevant functions, reflecting the integration of key actions into regular operations at both the Group and entity levels. There is no significant CapEx or OpEx for these actions.
The effectiveness of actions and initiatives is continuously tracked and assessed through our goals and targets, see Metrics and targets as well as other measures and sources of information such as audit results and stakeholder engagement.
Business Partner Code of Conduct compliance
Epiroc’s local management is responsible for evaluating their suppliers according to the BP CoC requirements. All business partners must sign and adhere to the policy. If a supplier refuses, they will be contacted for dialogue, and failure to sign may lead to contract termination. First-tier business partners are responsible for ensuring that their sub-suppliers comply with the BP CoC principles. If requested, business partners must inform Epiroc of their sub-suppliers. To identify potential negative impacts, Epiroc requires collaboration and access to business partners’ premises. In case of a material breach of the BP CoC, Epiroc reserves the right to terminate the relationship or allow a period for the business partner to address the breach.
Compliance with the BP CoC is tracked for all significant suppliers, i.e. those with the largest purchasing spend. The threshold for purchasing spend is lower for suppliers operating in high-risk countries. High-risk countries are defined using criteria from a third-party risk analytics firm, covering issues such as environmental, labor standards, child labor, modern slavery and corruption.
Risk analysis
Risks associated with high-risk products or geographical areas will vary over time. According to our DD Framework, all regions will be evaluated from a risk-based perspective including human rights and labor breaches. The risk analysis is a key part of our second step in the due diligence process for suppliers, aimed at identifying negative impacts. Our due diligence efforts will focus on those suppliers, materials, products, and/or services identified as higher risk through this assessment. We perform risk assessments and place heightened due diligence efforts on products containing conflict minerals, cobalt, mica, and natural rubber and will do so for batteries too. Our risk analysis will be continuously updated based on changes in our supply base, external developments on inherent potential negative impacts for geographies, and/or materials, and other new information.
In 2024, a high-level risk analysis was conducted for indirect sourcing categories, identifying potential negative impacts on upstream value chain workers and flagging higher-risk products and services in specific regions. Solar panels is a high-risk goods category. A review of our solar panel suppliers was done and the Solar Panels Purchasing Guidance was released to mitigate the risk. Services like cleaning, canteen, and security in high-risk countries are also noted as high risk and will be targeted in further due diligence efforts in coming years.
Own audits for new and existing suppliers
The Responsible Sourcing team supports Epiroc’s local purchasing teams in performing Epiroc’s own audits for new suppliers. All new suppliers must undergo these audits. The Responsible Sourcing Team also selects a number of sustainability audits for the existing supply base each year.
The supplier evaluation process examines:
- Labor issues: Rejection of forced, compulsory or child labor, elimination of discrimination, safeguarding of employee health and safety, fair wages, decent working hours, collective bargaining rights.
- Environmental performance: Managing waste, minimizing emissions, and reducing consumption of natural resources.
- Human rights issues: Respect for human rights in operations.
In 2025 we strengthened our pilot program for third-party audits and incorporated it as an important component in our due diligence processes for responsible sourcing. We plan to continue developing this program internally and with selected suppliers. For both our own sustainability audits as well as the third-party audits, we have a corrective action plan process for addressing any findings and to ensure the effectiveness of our actions.
Conflict minerals procedure
To support our policy regarding sourcing of minerals that may originate from conflict-affected or high-risk areas, we have a procedure to provide practical guidance on conducting due diligence to ensure Epiroc products are conflict-free. The procedure provides instructions and tools on how to carry out and document a supply chain due diligence review in order to comply with relevant and applicable legislation, regulations and other obligations. The tools and related conflict minerals procedure are built on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, as well as on the tools of the Responsible Minerals Initiative (RMI) of which Epiroc is a member. This procedure includes identifying suppliers of commodities likely to contain 3TG, requesting these suppliers to complete a conflict mineral reporting template, and evaluating their responses. Supplier responses are accepted based on specific conditions. Information about the presence and origin of 3TG in Epiroc products is consolidated and shared with interested parties. Suppliers are also required to exercise due diligence following the OECD guidelines according to our BP CoC.
Sourcing due diligence training
In 2024, a process was established to train all newly acquired companies on Epiroc’s sourcing due diligence processes and supplier requirements. This training will be conducted regularly. Additionally, the Responsible Sourcing team plans to offer due diligence and human rights training to relevant internal and external stakeholders. This training started in 2025 and will be held regularly to ensure all stakeholders involved in implementing our DD Framework can effectively identify, prevent, mitigate, and stop any negative impacts on upstream value chain workers.
Workers in the downstream value chain
Responsible sales assessment and indirect sales partners due diligence
Our key actions to manage impacts and risk relating to downstream workers are part of our Responsible Sales Assessment and due diligence processes for indirect sales partners (IDS partners). The RSA policy requires the customer centers and divisions to carry out a risk assessment and find mitigating measures if potential risks within human rights, corruption and environment are identified. Before engaging with any IDS partner, entities must perform a compliance screening. Only IDS partners that have successfully passed the compliance screening may be approved for engagement and is continually monitored. Read more in ESRS S3 Affected communities
Improved working conditions in mining and construction
To support our customers and their workers downstream in our value chain, we provide solutions that improve productivity, health and safety. We have a long history of autonomous and remote-controlled equipment, making it possible to remove operators from dangerous areas in the mine or at the construction site. Read more about our work with product safety in ESRS S4 Product safety.
Battery-electric underground equipment generates less heat, noise and vibrations when in use. This significantly improves working conditions for people on site. Read more about our work with battery-electric products in ESRS E1 Climate change.