Our suppliers and sub-contractors are critical elements in our success. We recognise that these relationships need to be valued and developed. However, there are also risks in the supply chain associated with a range of CR aspects, particularly in the areas of minerals extraction and manufacturing, relating to people (e.g. health and safety, human rights, communities), the environment (e.g. water pollution, hazardous wastes, energy/CO2) and business ethics (e.g. bribery, corruption).
We want to work with product suppliers that meet our own standards of safety, environmental and quality management. An environmental self-assessment has been in place since 1997 and about 1,500 suppliers have been surveyed. Audits that include EHS started in 2010. A list of banned and hazardous substances has also been circulated and is monitored regularly. Auditing and other tools for managing supply chain CR risks and obtaining assurance are being reviewed for possible future use.
From 2009, the ESAB self-assessment programme has been strengthened with the introduction of on-site environmental, health, safety and quality audits for finished goods suppliers. All new finished goods suppliers will be audited and we will also systematically cover the existing supply base.
Howden have implemented, group-wide, a formal vendor audit process, including agents, audit process, which includes ensuring the Charter Code of Conduct is followed.