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Monitoring compliance Before qualifying to work with NSN, new suppliers are evaluated based on their responses to a self-assessment questionnaire or through on-site system audits. This initial evaluation, together with a risk assessment by country using Maplecroft’s Global Risks Portfolio, helps us identify high-risk suppliers for in-depth audits on labor conditions and environmental management. The criteria for in-depth audits are based on our supplier requirements and local regulations, and align with international standards SA8000 for labor conditions and ISO 14001 for environmental management. All audits are conducted by trained NSN auditors according to our supplier audit framework (see box on how an audit works). Conducting the audits ourselves helps us gain a better understanding of the issues and enables us to work directly with suppliers to build competency. Our auditing process requires suppliers to present corrective action plans within 30 days of any instances of non-compliance identified by our audits. We then follow up to ensure these plans are implemented. We have found that suppliers generally react positively and take action to improve. However, if a supplier refuses to address the issues raised, we would reconsider our relationship with that company. Learning and capability building We recognize that audits alone do not necessarily improve performance because they only provide a snapshot of the situation at a supplier’s site at the time of inspection. To drive sustainable improvements in the supply chain, we combine audits with workshops and other engagement to improve suppliers’ sustainability capabilities. These cover sustainability in general as well as specific issues such as health and safety. We also develop and implement industry training for suppliers through the Global e-Sustainability Initiative. 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