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Sustainability > Society

Supply Chain

Barrick recognizes that the conduct and behavior of our suppliers, vendors and contractors can affect—both positively and negatively—the quality of our workplace, the environment, and the lives of people in local communities, as well as our reputation and ability to operate effectively.

We expect and demand that our supply chain partners uphold Barrick’s principles of ethical business conduct and respect for human rights. As a company, we strive to do business only with those suppliers who share these principles.

Priorities in 2018
  • Achieve 100% Vendor Onboarding and Risk Assessments of our new vendors.
  • Continue to automate and digitize Supply Chain processes in 2018.

Barrick’s approach to working with suppliers is based on the principle of partnership: we believe that, by working collaboratively – both internally with end-users and externally with our vendor partners - we can consistently lower the total cost of ownership, providing goods and services with security of supply, while supporting efficient work processes across sites and global categories. To this end, we work closely with our supply chain to pursue fair-minded competition, continuous improvement, and a mutual focus on ethical conduct.

We conducted due diligence on 99% of new mining operations suppliers in 2017—more than 10,600 vendors.

In 2017, the Supply Chain group updated both its risk assessment and its maintenance technology. As we continue to digitize processes, we expect to generate additional cash flow through improved integration of site maintenance programs and our global procurement and logistics system.

Supplier Conduct

As part of our commitment to human rights, Barrick developed and implemented a Supplier Code of Business Conduct and Ethics in 2008 and added enhancements to it in 2014. It covers important issues such as anti-bribery, anti-corruption, human rights, health, safety, and environmental protection – principles Barrick holds dear and expects our partners to share. It is our intent to deal only ? Low-value transactions, non-repetitive transactions in low-risk areas, and some transactions with local suppliers will not undergo the same rigor as those suppliers being fully certified. with suppliers who have accepted the Supplier Code of Business Conduct and Ethics.

Barrick’s Supply Chain

The function purchases, stores and delivers $3.5–$4.5 billion annually in supplies, equipment, and services to Barrick’s mines and offices. The group sources products ranging from diesel fuel and chemical reagents to IT equipment and haul trucks from more than 20,000 vendors worldwide.

 

In support of this goal, Barrick has put in place a Vendor Onboarding System and Standard. Under the Standard, we conduct due diligence on all entities receiving funds from Barrick—including suppliers, service providers, and civil society groups. The onboarding process covers the Supplier Code of Business Conduct and Ethics, Barrick’s human rights program, and anti-corruption, as well as adherence to the company’s safety and environmental standards.

The process itself may include internal and external questionnaires, a search of the World Check ?World Check is a database that is used to help to identify and manage financial, regulatory and reputational risk. World Check research identifies hidden risk, and reveals connections and associations between illicit parties, to provide a comprehensive view of risk across the global financial crime landscape. database, a request that the vendor register with TRACE International’s due diligence system, TRAC ?The TRAC system captures a range of due-diligence/compliance information submitted online by applicant suppliers. This information is then screened against international watch lists and verified to help meet anti-bribery compliance regulations, as well as compliance with emerging cross-border government regulations, conflict minerals reporting requirements, anti-money laundering laws, and forced-labor trafficking laws., and vendor self-certification of its willingness to comply with Barrick’s Supplier Code of Business Conduct and Ethics. Once a vendor is assessed by our Supply Chain group, it may be added to Barrick’s Approved Vendor Register. Under the system, all new vendors are to be assessed according to the Standard and current vendors are to be assessed every three years. High-risk vendors are to be assessed every year.

Once Barrick agrees to do business with a supplier, relevant contracts will contain human rights compliance provisions. We may also provide focused training and support to certain suppliers. Under our Human Rights Policy, suppliers are expected to report human rights issues if and when they become aware of them and we will investigate the behavior of existing suppliers and contractors related to human rights issues. We will also ask relevant suppliers to periodically provide certifications that they are not aware of any unreported human rights allegations, and we may offer focused training to certain suppliers.

Local Procurement

We believe that responsible economic development can and should improve the lives of stakeholders in the regions where we operate. When done responsibly, economic development is a contributor to a broad spectrum of positive impacts. Through local procurement, for example, the presence of our operations can directly help host communities and individuals enjoy the rights to work, to food and property, and to an adequate standard of living. We developed a Local Procurement Standard in 2013. The Standard was implemented in 2014 under the direction of the Community Relations group.

Local Purchasing

Barrick made approximately $351 million in local purchases near our mine sites in 2017 – approximately 11% of our total procurement spending.

 

To support these efforts, Barrick has also put in place a local content framework. The development of the framework was a collaboration with all groups impacted by local content policies, including Supply Chain leads, Community Relations, Human Resource leads, mine General Managers, country Executive Directors, Construction Managers, and Project Directors. This framework outlines the steps needed to develop local employment and local procurement programs, referencing best international practice and embedding lessons learned from other Barrick sites. An important emphasis is on engaging with internal end users on the mine site and making sure local content programs align with their needs and concerns.

For more information on our activities regarding local procurement practices, see Social and Economic Development.

Along with buying locally whenever possible, Barrick often works with regional government economic development committees, where they exist, to help our suppliers diversify so that the eventual closure of a mine will not impose undue hardships on local businesses. See Mine Closure for more information.