Industrial And Financial Systems Group
Modern Slavery And Human Trafficking Statement For Financial Year Ending 31 December 2021
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 therefore 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. 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 2021.
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 group of 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 has more than 10,000 customers across 50 countries.
There are currently over 4400 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 and we require our recruitment agencies to comply with all applicable legal requirements.
IFS is proud of its history and culture and its commitment to strive to do things better and more efficiently. 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 2021, IFS took steps to strengthen our approach to sustainability and set our ambition in this area. We conducted a materiality assessment to help to identify priority areas and understand the level of understanding of our stakeholders, including colleagues, around how these topics apply to our business. The materiality assessment involved internal and external stakeholders to rank sustainability topics, with external support. The result identified human rights, including anti- slavery, as a top material issue for IFS, which will input to strategy development and resource allocation.
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 against 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.
- 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, there are procedures in place 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;
- 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.
As an international company IFS uses a wide range of suppliers; we seek to identify aspects of our supply chain potentially exposed to the risk of slavery and human trafficking, as articulated by the Global Slavery Index. We have in excess of 2800 suppliers, mostly providing services, but like many organisations, the next tier(s) of the supply chain need to be better understood for us to ensure our standards are met and exert greater influence where they are not.
Due diligence and audit of suppliers and supply chain
IFS operates a supplier onboarding procedure that requires all suppliers to achieve certain minimum standards. These are explained in our Supplier Code of Conduct, which together with our Terms of Business gives us audit rights to ensure compliance with our standards, and any relevant laws and regulations.
IFS maintains the following supplier policy requirements:
- Commitment to adhere to and comply with the UK Modern Slavery Act 2015, or equivalent laws, statutes or regulation in other jurisdictions where similar anti-slavery laws apply
- Commitment to maintain and practice their own policies and operations in the fight against human trafficking and modern slavery, including the same extension to sub-contractors
- Commitment to traceable, ethical trade throughout its supply chain
The IFS supply chain is governed and operationally managed by the IFS Procurement Service Centre (“PSC”) which oversees the vetting process, monthly reporting and supplier audits. Prior to being awarded a new contract in IFS, candidate suppliers will undergo certain risk assessments and must expressly commit to complying with all local and national laws and regulations, including those that relate to combating slavery and human trafficking.
Assessment of our effectiveness in combating modern slavery within our supply chain
Being an enterprise software company, when reviewed in the context of the 2018 Global Slavery Index most of IFS’ supply chain is of a low-risk nature and we maintain policies which set out steps for ethical and sustainable sourcing in all areas of our business.
IFS is fully committed to preventing modern slavery and human trafficking from occurring within our supply chain or any part of our global business. To achieve this, for our procurement activities we have:
- Published our IFS Supplier Code of Conduct on our website (www.ifs.com) which we ask suppliers to commit to when contracting with IFS;
- Included robust clauses in our standard supplier contracts specific to modern slavery
- Continued 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; and
- Maintained avenues for our suppliers to use to report any concerns they may have about slavery and human trafficking
IFS Group companies engage with EcoVadis, which provides supplier sustainability ratings for global supply chains, for certification in select geographies. In 2022, we will participate in this benchmarking at a Group level.
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 March 2021, all IFS staff were invited to attend a structured, interactive online training course about Modern Slavery and Human Trafficking to raise awareness for the role they play in mitigating the risk of modern slavery in our operations and ensuring we work with suppliers who uphold the same ethical principles as us. This training was made mandatory for all employees within our HR and Procurement teams, with follow up in place to ensure completion and a positive passing rate, which is recorded in our online training tool.
The Modern Slavery and Human Trafficking course is also embedded in onboarding for all employees globally. This ensures all new employees, regardless of their position or department, are aware of their responsibilities. IFS aims to refresh and update this training to all staff periodically.
Throughout 2022, Modern Slavery and Human Trafficking training will be incorporated as a module in global, mandatory training for all IFS employees. This training will be developed to include IFS- specific actions and links to relevant policies.
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 23, 2022 | 10:06:59 AM BST
This statement was approved by IFS UK Limited.
For Industrial and Financial Systems, IFS UK Limited.
On June 23, 2022 | 10:06:59 AM 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 2021.