Mips does not conduct any of its own production, and instead uses external suppliers for the manufacturing of Mips’ products.
Mips does not conduct any of its own production, and instead uses external suppliers for the manufacturing of Mips’ products. To ensure that our supply chain and the manufacturing of our products is sustainable we therefore need to ensure that the supply chains of our suppliers are sustainable and comply with requirements stipulated by international laws and conventions.
Mips’ customers, i.e. helmet manufacturers, have chosen to use factories mainly in China to produce the their products. Due to this Mips opened a subsidiary in 2017 to be as close as possible to the production.
We believe that we have an important role in ensur- ing that the human rights of the people we affect through our operations are respected. This includes the entire value chain and every single supplier and distributor. Mips has therefore drawn up a Code of Conduct aimed at defining the sustainability requirements that apply to all suppliers. The supplier Code of Conduct is based on Mips’ internal Code of Conduct as well as international conventions and standards such as the ten principles of the UN Global Compact, the standards of the International Labour Organization (ILO) , and the OECD guidelines. The Code is a complement to applicable laws and regulations, and the supplier must conduct all activities in full compliance with all laws and regulations that are applicable to its operations. Mips respects, and expects its suppliers to respect, children’s rights in accordance with the United Nations Convention on the Rights of the Child and other applicable national and international laws, regulations and rules related to child labor in the countries where our production or operations take place.
Our supplier Code of Conduct has been designed to ensure that all companies in our supply chain take responsibility for the environment, and for respecting human rights, employee rights, working conditions and proper occupational health and safety. Suppliers must also conduct their operations in accordance with applicable laws and regulations.
Mips regularly audits its suppliers to ensure that the requirements of the Code of Conduct are fulfilled. Controls are carried out by Mips’ employees in China, and if deviations are detected, we develop an action plan together with the supplier. Any deviations that arise are always handled in accordance with applicable legislation.
Mips has operations in Sweden and China and deems that there is always a risk that corruption may occur. Mips has an anti-corruption policy and applies a zero-tolerance policy to corruption and bribery. Mips therefore performs continuous audits of the factories that are part of our supply chain.
All transportation to end markets is handled by our customers, who are encouraged to choose green options to the extent possible. We continually review circumstances with the aim of locating our production as close to the end users as possible, but in this regard we are dependent on our customers and their production logistics. Our subsidiary in China is located close to many of the largest helmet factories in order to minimize negative climate impact. We also deem that future inroads into new categories and greater penetration of certain existing categories, may mean that our production, at least in part, may be based in both Europe and the US, which would likely reduce the final transport needs of customers, thereby reducing the impact of the entire production chain on the climate and the environment.
All testing of new helmet models with Mips’ technology takes place in the testing lab at our offices in Sweden. The helmets used in testing are then sent to be destroyed and burnt at incinerators where the energy generated through combustion is recycled by a third party and used for household heating.
Since 2021, Mips has had a goal to always choose the most environmentally friendly choice of transportation.
During the year we calculated our total climate impact according to the GHG Protocol, the results of which will provide the basis for our continued efforts to reduce our climate impact. Read more about this on page 57.
In 2021, the majority of Mips’ products were manufactured in China where we work with several independent subcontractors. All of the company’s subcontractors in China have signed our Code of Conduct. Mips also has procedures in place to limit the risk of undue influence when choosing suppliers. All new suppliers must be reviewed and approved by the Head of Operations and/or the CEO before any contracts are signed.