Responsible Supply Chain Management

Suppliers may need guidance and encouragement to implement suitable policies for managing their potential environmental and social impacts. Some suppliers may present higher risks concerning human rights, potential environmental harm or labour practices. In this case the organisation that they are contracting to can conduct due diligence to identify these suppliers and hence help mitigate the negative impacts within the supply chain.

GRI 103-01, 103-02, 103-03: Management approach

Bapco uses a prequalification procedure to screen suppliers, ensuring compliance with established Bapco EHS procedures and all relevant laws. The scope of the procedure covers all requirements necessary for prequalification prior to admission onto the Approved Vendor List maintained by Bapco. The procedure includes questions on commercial experience, organisation, financial stability and other management processes for quality, environment, healthcare and safety. It is designed to complement Bapco’s Code of Conduct that includes guidance on expected working relationships between employers and suppliers. Suppliers are subject to audit by Bapco to ensure compliance with the prequalification criteria and other technical and commercial criteria as decided by Bapco. Appropriate support and advice is provided by Bapco to local suppliers wishing to be prequalified.

GRI 308-01: New suppliers that were screened using environmental criteria

Refer to 414-01 for the proportion of new suppliers that were screened; this screening procedure also includes environmental assessment.

GRI 308-02: Negative environmental impacts in the supply chain and actions taken

During the reporting period 2020 -2021, there were no cases of contract termination caused by negative environmental impact.

GRI 414-01: New suppliers that were screened using social criteria

The graph below gives the number of new suppliers that were approved by year. Bapco screens 100% of its suppliers to determine local content. We additionally screen a small proportion of suppliers based on their business activities against environmental and occupational health and safety criteria (refer to figure below). In 2020, 18% of new approved suppliers were classified as ‘local’ to Bapco and the proportion increased to 73% in 2021.

GRI 414-02: Negative social impacts in the supply chain and actions taken

During the reporting period 2020 -2021, there were no cases of negative social impact identified for suppliers.