Industrial And Financial Systems Group
Modern Slavery and Human Trafficking Statement For Financial Year Ending 31 December 2022
Slavery has legally been abolished in all countries in the world but practices akin to it are widespread to this day. Such practices, often termed “modern slavery” or “human trafficking”, include forced labour, indented labour, domestic servitude and child labour, amongst other abhorrent practices.
At IFS, we are committed to playing our role in eradicating modern slavery and human trafficking in all forms. We have taken steps to ensure that our business and supply chain are free from modern slavery and human trafficking. These efforts include actions to ensure that everyone who works for IFS does so in an environment in which human rights are respected and anyone that we do business with also upholds these principles.
This statement details those efforts and is issued pursuant to Section 54 of the Modern Slavery Act 2015 (the “Act”). It relates to actions taken by or on behalf of IFS Limited, IFS AB and members of the IFS Group (all defined below). The statement is made for the financial year ending 31 December 2022.
The IFS group incorporates Industrial and Financial Systems, IFS AB (“IFS AB”), Industrial and Financial Systems, IFS UK Limited (“IFS Limited”) as well as a number of other companies. IFS AB is the parent company of the IFS group of companies. The entities covered by this statement are IFS Limited, IFS AB and all majority owned subsidiaries of IFS AB or its subsidiaries (“IFS Group”), including in countries such as Australia, Canada, France, Germany, and the USA where similar modern slavery legislation is in force. IFS also enforces our commitments within the IFS Code of Conduct in all IFS entities globally.
The IFS Group is a globally recognised leader in developing and delivering enterprise software for Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM) and Enterprise Service Management (ESM). We offer applications that enable companies to respond quickly to market changes and use resources in a more agile way to achieve better business performance and competitive advantage.
IFS AB is a private company founded in Sweden in 1983. IFS solutions are used by thousands of customers worldwide through a network of local offices and a growing ecosystem of partners. IFS' solutions are known for being user-friendly, modular in their design and flexible enough to support customers in their way of working according to their established processes. Our business philosophy and architecture provide solutions that are easier to implement, run and upgrade.
The IFS Group supports thousands of customers across 50 countries.
There are currently over 5700 people employed by the IFS Group worldwide, all of whom are subject to pre-employment checks to ensure their right to work and to confirm their identity. All employees are provided with information about their statutory rights and paid above the applicable minimum wage. We require our recruitment agencies to comply with all applicable legal requirements.
IFS is proud of its history and culture and its commitment to self-improvement. At IFS, our long-held values are to be agile, collaborative, and trustworthy. These values form the basis for how we work and guide the way we interact with our employees, customers, partners, and suppliers, and between colleagues.
Our purpose is to create long-term sustainable value and, through technology, transform and improve entire industries as well as individual lives. IFS has placed sustainability at the core of its values since its inception in 1983, and we believe that our industry has a critical role to play in the sustainability movement.
In 2022, IFS launched our sustainability strategy, based on input from our materiality assessment. This focuses on three pillars, ‘Excellence in our own business’, ‘Supporting our customers’ and ‘Making a broader impact’. The topic of human rights is captured in ‘Excellence in our own business’, which focuses on improving our operational sustainability performance, including risk management. This is detailed in the 2022 Sustainability Report.
IFS is a signatory to the UN Global Compact and has identified its focus areas for the UN Sustainable Development Goals as reduced inequalities, climate action, industry, innovation and infrastructure, good health and well-being, and quality education.
Our policies in relation to modern slavery
Our Code of Conduct and supporting policies in Procurement and Human Resources (HR) support us in mitigating the risk of modern slavery taking place in our business.
IFS prides itself on being a responsible and compassionate employer. We are committed to the principles that labour must be freely chosen and that workers should be able to leave employment without impediment (beyond reasonable notice requirements).
To ensure that we recruit and treat employees fairly, aiming to eliminate modern slavery at all costs, our HR policies and guidelines set out our procedures on how we:
- Recruit and select employees in a fair, lawful and professional manner, both for internal and external candidates;
- Manage agency supplier terms that require compliance with the UK Modern Slavery Act 2015;
- Treat all employees fairly during their employment and, if there is an occasion when an employee does not feel that they have been treated fairly, ensure adequate procedures to raise a grievance;
- Maintain avenues for our employees to report any concerns they may have about slavery and human trafficking as well as other HR matters or Code of Conduct violations; and
- Manage the exit of an employee from the business in a fair and consistent manner.
We ensure that all employees have access to these policies through an internal platform. In 2023, IFS intends to review and update the IFS Code of Conduct. A whistleblowing platform will also be made available in 2023, which will enable employees, suppliers, and customers to report any concerns.
As an international company, IFS leveraged over 2000 suppliers for goods and services in 2022. We regularly explore ways to improve our end-to-end supply chain visibility and strengthen our ability to
identify areas that could potentially be exposed to the risk of slavery and human trafficking, as identified by the Global Slavery Index. This ensures our standards are fully met, and to act and remedy where they are not.
Due diligence and audit of suppliers and supply chain
IFS requires all prospective suppliers to meet certain minimum standards as outlined in our Supplier Code of Conduct. We have audit rights to ensure compliance with our standards, as well as any
relevant laws and regulations. We maintain supplier policies that ensure both IFS and our suppliers’ commitment to:
- The UK Modern Slavery Act 2015, or equivalent laws, statutes, or regulation in other jurisdictions where similar anti-slavery laws apply;
- Maintaining policies and operations against human trafficking and modern slavery, including the same extension to sub-contractors; and
- Practising traceable, ethical trade throughout the supply chain.
The IFS Procurement team manages the IFS supply chain, overseeing supplier vetting, onboarding, and assurance processes, as well as monthly reporting and supplier audits. Before being awarded
a new contract, prospective suppliers undergo risk assessments and pre-qualification checks and are required to commit to compliance with all local and national laws and regulations, including those related to combating slavery and human trafficking.
Combating modern slavery within IFS supply chains
At IFS, we are committed to preventing modern slavery and human trafficking from occurring within our supply chains and any part of our global business. We recognize the importance of ethical and
sustainable sourcing, and we maintain policies that set out clear steps to achieve this goal.
Most of IFS’ supply chain is of a low-risk nature when reviewed in the context of the 2018 Global Slavery Index. To ensure compliance and mitigate any potential risks, we have implemented several measures for our Procurement activities:
- We have published our IFS Supplier Code of Conduct on our website, which we require all suppliers to commit to when contracting with IFS.
- Our standard supplier contracts include robust clauses specific to modern slavery.
- We continue to include the Supplier Code of Conduct in our Procurement training for staff who may engage contractors or any other third party engaged by IFS.
- We maintain avenues for our suppliers to report any concerns they may have about slavery and human trafficking.
- We have updated performance standards for IFS Procurement to ensure social targets are evaluated alongside commercial deliverables.
To help evaluate and further strengthen our practices, IFS engages with EcoVadis, a leading supplier of business sustainability ratings for global supply chains, for certification in select geographies. In
2022, we participated in this benchmarking at a Group level and are combining the recommendations of the benchmark with the IFS Procurement roadmap to continue improving our efforts in combating
In 2023, IFS will continue to strengthen its practices for identifying and mitigating the risks of slavery and human trafficking in its supply chains. This will involve:
- Conducting annual reviews of purchasing practices to ensure they support IFS's modern slavery goals.
- Updating performance standards for IFS Procurement to ensure social targets are evaluated alongside commercial deliverables.
- Strengthening IFS Procurement’s internal policies, procedures, accountability, training, and awareness.
- Establishing a mix of quantitative and qualitative indicators to measure IFS Procurement’s efforts to reduce, prevent, and remedy negative impact.
- Introducing real-time supply chain risk reporting to assess all active suppliers.
- Implementing total supplier volume reduction initiatives to develop long-term business relationships and increase leverage, openness, and cooperation.
- Formalising labour provider relationships along the supply chain.
Training and communication
To make employees aware of the Act and the drivers of modern slavery, we share this statement with all employees through our internal communication channels and a copy of this statement is available on the IFS website.
In 2022, IFS employees were assigned updated training on Modern Slavery. This two-part training consisted of a third-party training module designed to explain the definition of Modern Slavery, warning signs and legal ramifications. This was then followed by a link to the IFS Anti-Modern Slavery and Human Trafficking policy.
The Modern Slavery and Human Trafficking course is now embedded in onboarding training for new employees globally. This ensures new, as well as existing, employees are aware of their responsibilities. IFS will refresh and update this training periodically, where appropriate.
In 2023, we will continue to build on our initiatives to ensure that employees are equipped with the knowledge and understanding to recognize and combat modern slavery. This reflects our company's commitment to ethical and responsible business practices, and we are committed to making it a reality
Approval and continuous review
The IFS Sustainability (ESG) Steering Committee will monitor and continue to improve the steps we take to combat slavery and human trafficking.
This statement was approved by IFS AB.
On behalf of IFS AB
On June 21, 2023 | 1:44:56 PM EDT
This statement was approved by IFS UK Limited.
Alan Laing; MD, IFS UK
For Industrial and Financial Systems, IFS UK Limited.
On June 21, 2023 | 5:00:02 PM BST
This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes Industrial and Financial Systems, IFS UK Limited slavery and human trafficking statement for the financial year ending 31 December 2022.