Policies and procedures
As set out in our Sustainable Development Policy and our Social Performance Policy we see our supply chain as a powerful lever for the achievement of our sustainability strategy. By sourcing goods and services from the local communities and countries in which we operate, we contribute to local economic development and facilitate the development of thriving and self-sustaining businesses, which are able to succeed long after our operations have ceased.
We require all our suppliers, regardless of location, to meet the high standards we set for ourselves. To drive this, our standard contracts include clauses that commit vendors to uphold our core sustainability policies, including our:
Procurement
Where goods and skills are available, we prioritize the use of local suppliers.
To ensure benefits remain in our host countries, we require at least 51% equity ownership of a local supplier by a host country citizen and that at least 80% of executive and senior management positions at the supplier are filled by host country nationals.
If the products or quality we require are not immediately available in our host communities, we identify vendors in the province or wider region and then our host country, before looking to international companies. We also take a longer-term view and our site supply teams work to build capacity and improve standards at local companies either through mentorship programs, skills and business training opportunities, or by providing loans to cover the cost of the materials needed.
Hiring
We prioritize the provision of job opportunities for our local communities and host countries. It helps reinforce our social license to operate, and local and Indigenous employees also bring diversity and give our operations a better understanding of local customs, cultural practices, and the impact our activities on host communities.
All our operations have localisation plans, and we work to identify top talent in communities and to provide them with world-class training, and mentorship programs to help them grow and develop into leaders at our operations or valued suppliers with world class standards.
Managing supply chain risk
To manage supply chain risk, as part of our due diligence and vendor on-boarding standards, we make sure our suppliers meet our standards and in order to identify potential risks, our process includes:
- Pre-contract due diligence – We conduct due diligence on potential vendors to understand their business and risk profile. The due diligence process examines financial health, capability in the industry, human rights protection, safety, environmental management and any history of malpractice. Our checks include prohibited party, political exposure, as well as anti-bribery and anti-corruption screening. For any potential or actual high-risk suppliers, we conduct additional reviews and advanced due diligence as needed. Post-engagement operating controls are implemented where required. These controls may include specific training for our high-risk vendors, additional clauses included in agreements or enhanced invoice reviews. We define high-risk suppliers as those where we anticipate a large spend; working in certain high-risk industries (such as customs, intermediaries, or immigration); based in high-risk jurisdictions and who are linked to, referred by or controlled by government officials or entities.
- Ongoing monitoring - For the full life of a contract, our site and regional procurement teams work with our vendors to identify, evaluate and manage risks before they happen. We undertake periodic vendor recertification based on a rotating and risk-based schedule. For our largest or high-risk vendors, checks and risk assessments may be undertaken annually, depending on the risk profile. Our onboarding process also includes checks for automated ongoing sanctions, political exposure, legal and regulatory violation for all active vendors.
Key targets and metrics
- Percentage of workforce who are host nationals
- Percentage of senior management who are host nationals
- Percentage of economic value that stays in country
- Percentage of grievances resolved within 30 days