Systembolaget, Sweden’s state-owned alcohol retailer, was founded on a unique mandate: to minimise alcohol-related harm and promote public health. Over the years, this mission has evolved into something even broader.
“Our sustainability journey is driven by a deep commitment to becoming the world’s most caring specialist retailer,” says a Systembolaget spokesperson. “We take our responsibility seriously—to respect human rights and protect the environment, not just in Sweden, but across our entire global value chain.”
This commitment is not only a response to growing global expectations around responsible business conduct but also a proactive strategy to embed sustainability into the company’s core operations.
Embedding ESG Due Diligence
Systembolaget defines ESG due diligence as a continuous, risk-based process to identify, prevent, mitigate, and account for adverse impacts on people and the planet. Their approach is grounded in the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance.
This includes supply chain mapping, ESG data collection, risk assessments, stakeholder engagement, audits, worker surveys and capacity-building activities. Transparency and worker voice are central to the process, ensuring that sustainability is not just a policy but a practice.
Partnering with amfori BSCI for Scalable Impact
Ensuring consistent social compliance across a diverse and geographically dispersed supplier base has been a key challenge. Systembolaget joined amfori in 2011 around the same time as the UN Guiding Principles were published, adopting the amfori BSCI Code of Conduct and integrating it into supplier agreements from the outset. Collaboration with other Nordic alcohol monopolies—Norway, Finland, Iceland, and the Faroe Islands—has amplified their leverage and enabled joint progress on sustainability.
“Having alignment with our Nordic counterparts has been a game-changer,” the representative explains. “It’s allowed us to collaborate more effectively and be seen as trailblazers in the alcoholic beverages industry.”
Systembolaget has also contributed to the amfori Sustainable Wine Programme and engaged with local networks, such as in Latin America, to support sustainable practices in the wine industry.
Capacity Building and Local Engagement
The amfori Academy and local on-site training sessions in countries like Argentina and Chile have played a vital role in building shared understanding and driving local improvements. These sessions have focused on vineyards and farms, women’s empowerment, and integrating gender-sensitive perspectives into due diligence.
“The practical, context-adapted training has helped foster a culture of continuous improvement,” says the representative. “It’s not just about compliance—it’s about creating lasting change.”
Unique Supply Chain Structure and Future Needs
Due to Systembolaget’s unique position as a monopoly, their tier-one suppliers are all Swedish-registered companies such as importers, but the company’s ESG efforts extend beyond this tier. While suppliers appreciate the clarity of the amfori BSCI Code of Conduct, Systembolaget sees further potential in expanding access to amfori’s tools—such as the Sustainability Platform and ESG Risk Compass—for intermediaries and producers.
The company continues to support producers in improving their compliance scores and adapting to evolving EU regulations. Many producers, initially hesitant, have come to value the structure and benefits of the amfori BSCI standard.
Looking Ahead: Deepening the Partnership
Systembolaget’s future goals include enhancing human rights impact assessments, increasing supplier engagement, and integrating product carbon footprints into their due diligence framework. They also see opportunities for amfori to support further progress through:
- Access to the Sustainability Platform for intermediary suppliers
- Advanced training modules tailored to performance areas
- Sector-specific risk insights and enhanced data analytics
- Incentives for high-performing suppliers
- More local stakeholder engagement in key regions
- Addressing the shortage of trained auditors in relevant geographies
Systembolaget’s journey illustrates how a public health mission can evolve into a comprehensive sustainability strategy—one that sets new standards for responsible retailing in the global alcohol industry.