Account of due diligence assessments

Ruter is subject to the Transparency Act, and it is the Consumer Authority that oversees compliance with the law.

Here you can read our statements on how we work to reduce human rights violations and ensure decent working conditions in the supply chain. Download as pdf:

Owners and legal requirements

Ruter is owned by the municipality of Oslo and the county municipality of Akershus. As a publicly owned company, we follow:

• Public Procurement Act
• Procurement Regulation/Supply Regulation
• The Transparency Act

This includes requirements to respect human rights and workers' rights, as well as to conduct due diligence assessments.

We support the Oslo-model and the Viken-model's demands and guidelines for responsible business practices and respect for people, environment, and society.

Ruter as a purchaser

Ruter develops, plans, coordinates, and markets public transportation in Oslo and Akershus. We enter into contracts with various operator companies that carry out the transport services. We neither purchase nor own the vehicles used in public transport. It is the various operator companies that purchase the necessary equipment to fulfill the contracts – from boats and buses to tires and uniforms.

In addition to transportation services, we procure goods and services required by any organization such as IT equipment, cleaning services, and office supplies.

Ruter must respect human rights in all procurements. This is described in the procurement policy and procurement strategy. The strategy governs all our procurements and commits us to conduct due diligence assessments, set requirements for suppliers, and follow up on work with compliance with human rights and decent working conditions.

Contract Terms and Ethical Requirements

Most of our suppliers are Norwegian companies. In the contracts, we set clear ethical requirements. All operators, suppliers, and subcontractors must follow these documents:

Risk areas in the supply chain

Routes operate in a market with global and complex supply chains. Human rights violations can occur in various places within the supply chain, and the challenges often become greater and more serious the further down the chain we go.

Examples of risk areas:

• Extraction of raw materials for batteries: High risk of violations of both human rights and environmental destruction
• Bus manufacturers are located in countries with elevated risk
• Various services with known challenges for poor working conditions

Working with human rights in high-risk areas is demanding, both for Ruter and operators. Supply chains are often complex, and there are challenges with limited transparency. It can also be difficult to influence subcontractors who are far removed from us in the chain. This requires us to work in a targeted manner.

Here you can read a Swedish report that provides us with information about inherent risk areas in our supply chain.

Ruter has prioritized that all procurements and contracts on transportation services must be reviewed to assess the severity, extent, and likelihood of negative impact. We are particularly looking at countries and regions with known risks, as well as the work processes involved.

We are also working to improve working conditions for drivers and staff at bus facilities, as this is an important part of Ruter's supply chain. In collaboration with operators and other key stakeholders, we focus on improving toilet and break facilities, as well as health, environment, and safety (HSE).

Goods and services that we purchase for our own use can also involve risk. For example, IT equipment may be produced under conditions of low wages and forced overtime. Cleaning services may carry risks with poor and unregulated working conditions.

Ruter uses the high-risk list from DFØ (The Directorate of Public Management and Budget) to determine which procurement categories require more thorough assessments.

Requirements for due diligence assessments

Ruter includes due diligence assessments throughout the procurement process. Our work is based on OECD's guidelines for responsible business conduct. The goal is to reduce the risk of human rights violations and poor working conditions, as well as to ensure or collaborate on remediation and compensation where required.

All participants in a tender for transportation services must submit a preliminary due diligence assessment along with the bid.

The risk assessment should describe:

• what risks exist in the supply chain
• how this risk is managed to safeguard human rights and decent working conditions

The purpose is to contribute to a responsible business conduct throughout the supply chain and ensure that providers conduct due diligence before choosing suppliers. This way, the terms of the contract can be monitored in the best possible manner during the contract period.

Follow-up during the contract period

Ruter ensures that operators are working with due diligence assessments, as they have described in their bids. Due diligence is an ongoing task that must be performed regularly.

To achieve improvements, we need cooperation and good dialogue with both operators and suppliers. Workers benefit when all parties gain insight into the risks. Together, we contribute to ensuring fundamental human rights and decent working conditions.

Collaboration for responsible business

Ruter is a member of Ethical Trade Norway which is a resource center and membership organization for sustainable trade. The organization works to promote responsible business practices in global supply chains.

Furthermore, interdisciplinary collaboration is important for understanding and learning more, and Ruter therefore participates in several forums and working groups:

• The Directorate of Administration and Financial Management (DFØ) for guidance on public procurement
• ETI Sweden – the Electric Vehicle Working Group
• Collective Association – collaboration and development for public actors within sustainable mobility
• Skift – business climate leaders for sustainable transition