Human rights is embedded in our compliance program
Yara has made a commitment to respecting internationally recognized human and labor rights throughout our own operations, as well as in our supply chain. Respecting human rights is fundamental to sound risk management and Yara’s value creation.
We support the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, the International Bill of Human Rights, and the core conventions of the International Labor Organization (ILO). In addition, we perform human rights due diligence in our supply chain in compliance with the Norwegian Transparency Act (Åpenhetsloven).
Read our policy on human rights set out in our Code of Conduct
Norwegian Transparency Act
Read Yara's statement according to the Norwegian Transparency Act and contact us for any information requests
Human rights due diligence in the value chain
In 2022, we published our Sustainable Procurement Policy, to serve as an annex to our contracts. Our human rights due diligence follows UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct. In addition to integrating human rights standards into our procedures and contracts, we conduct Integrity Due Diligence (IDD), ESG screenings and on-site audits according to a risk-based approach, assuring proper human rights due diligence in our value chains.
Human rights impact assessments
We conduct human rights and geopolitical risk assessments to rank our countries of operation and the countries we source raw materials from in terms of human rights risk exposure. This assessment guides our prioritization of locations where to conduct human rights impact assessments.
Conducting targeted human rights impact assessments (HRIAs) is an integral part of meeting our due diligence obligations. Each HRIA we have conducted to date has proven highly valuable in identifying human rights impacts from Yara’s operations, and in evaluating how our human rights policies are implemented on the ground. Findings, action plans and implemented measures are presented to the Group Executive Board and the Board of Directors on a regular basis. Mitigating actions and providing remedy remain a local management responsibility. The Ethics and Compliance Department monitors implementation and reports on progress.
In addition, HRIA findings have improved our understanding of the main human rights at risk of adverse impact in Yara’s value chain. These are presented in our Code of Conduct and in the section below outlining identified impacts. We recognize that this landscape may change, and that we need to continuously monitor the potential impacts from our operations and value.
Identified risks
Findings of potential and actual adverse human rights impacts have been fairly consistent across the countries where HRIAs have been performed to date, but the degree of negative impact varies. The table on the right provides an overview of the key rights-holders affected and which human rights have been identified to be at risk of adverse impact across the jurisdictions assessed.
See Yara's Integrated Report for the full statement on the Norwegian Transparency Act (Åpenhetsloven).
Business partner code of conduct
One of Yara’s goals is to develop relationships with business partners that share similar corporate values as Yara and conduct their business in an ethical and compliant manner. The Code of Conduct for Yara’s Business Partners (BPCoC) is the Yara policy that outlines the legal obligations and the integrity standards Yara expects its business partners to uphold. The BPCoC considers the same internationally recognized and endorsed standards for human rights, business ethics, and labor conditions as our own Code of Conduct.
Integrity Due Diligence
Integrity Due Diligence (IDD) is the procedure for ensuring and monitoring the integrity of potential, new, and existing Business Partners.
The purpose of the IDD process is not to reject Business Partners, but to identify integrity risks and to mitigate these to safeguard Yara’s interests. If adverse responses are identified in the IDD self-assessment questionnaire, we initiate a dialogue with the Business Partner, and are committed to influencing them to uphold the same integrity standards as at Yara.
As part of the IDD Procedure, we continuously monitor compliance in our value chain by screening Business Partners against sanctions, watchlists, and compliance databases. On a risk-basis, certain Business Partners are selected for additional follow-up, including in-depth due diligence work, training and other communication efforts.
Sustainable procurement
The Sustainable Procurement Policy describes how we want to cooperate with our suppliers to create transparency in our suppliers’ business sustainability performance and how to improve their performance, and with that our own performance, where required. This policy guides our global Procurement teams and the implementation of a sustainable procurement program at Yara.
Supplier compliance
Supplier Lifecycle Management (SLM) refers to the comprehensive approach of managing suppliers’ performance and relationships from the selection and onboarding to the end of the contract. It encompasses several key processes starting with Supplier Scouting and Qualification, followed by Supplier Onboarding and Segmentation, Supplier Performance and Compliance Management, Risk Management, Audits, and ending with Offboarding. This is a global process that allows cross-functional Procurement teams to cover increasing internal and external due diligence and reporting requirements, such as the Norwegian Transparency Act (Åpenhetsloven).
Supplier audits
We conduct supplier audits and assessments in sectors in which we have identified risks through, for example, our Integrity Due Diligence (IDD) process, human rights impact assessments (HRIA), reports of severe accidents, or previous audit findings.
Since 2023, alongside the standard integrity due diligence questionnaire outlined in the Integrity Due Diligence process, we incorporated a dedicated focus on human rights and working conditions into the supplier audits conducted in the corporate Supplier Social Audits program. Suppliers are selected based on a combination of geopolitical and industry risks, along with their strategic importance to Yara’s business. This methodology will guide our efforts going forward.
Social audits serve as both an evaluation tool and a platform for knowledge sharing. These audits help us understand the concerns and risks faced by value-chain workers. The audit plans cover all aspects of our supply chain. Key findings relate to these areas:
• Forced and compulsory labor
• Wages and working hours.
• Occupational health and safety.
• Grievance mechanisms
• Sustainability in sub-suppliers
All findings and improvement areas are discussed in full openness with our suppliers, along with possible actions or remediation efforts. Yara is committed to using our leverage to the best of our abilities to address any identified impacts.
Supplier General Terms and Conditions (GTC)
Yara seeks to enter into fair and balanced agreements with all suppliers, based on consistent legal terms, and therefore it is our company policy that all supplier agreements should be based on our GTC of Purchase. The GTCs refers to both our Code of Conduct and our sustainable Procurement Policy.
Please note that Yara may use country specific versions of this GTC of Purchase in certain jurisdictions to accommodate for mandatory law.
