Responsible Procurement System

Abengoa transmits its commitment to sustainability to its suppliers as a key element in its undertaking to sustainable development. Promoting a culture of responsibility throughout the value chain allows the positive impact to be multiplied across the organization’s values and principles.

Since 2008, Abengoa requires its suppliers to adhere to the Sustainability Code for suppliers and subcontractors, which was updated in 2016, strengthening the corporate integrity, transparency and good governance areas.

The clauses included in the Sustainability Code for suppliers and subcontractors are based on the principles of the UN Global Compact, the Universal Declaration of Human Rights, the guidelines of the International Labor Organization, Rio Declaration on Environment and the UN’s Convention against Corruption.

Adhering to this code is not only a way of ensuring business is done as expected, but also a means of improving the quality of life and professional conditions of all actors across the supply chain, contributing to a more sustainable world and helping achieve the Sustainable Development Goals (SDGs).

Risk management in the supply chain.

In 2018, with the purpose of assessing the supply chain, monitoring the involvement in and acceptance of the corporate policies by suppliers, determining the level of risk and establishing measures to mitigate it.

Suppliers are assessed by conducting an analysis that not only considers material or awarding amount factors, but also identified a series of factors that could be considered as risks, for example: country of origin of the supplier, its activities, materials supplied, and other more subjective criteria that could be associated with reputational risks for the company. International indices are used to determine the company’s level of risk, among others, which include different aspects, such as human rights, labor practices, corruption, political and civil rights, and political and environmental risks.

After the risk level of suppliers has been analyzed and its criticality has been evaluated, suppliers will be assessed with the purpose of determining to what extent they comply with the principles defined in the Sustainability Code.

An audit procedure was created to conduct these assessments, which defines the aspects to review and establishes the scope of the work, according to the degree of importance of the supplier. The analysis can be conducted using self-assessment questionnaires or through audits (on-site or remote) which include visits to the supplier’s facilities.

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