Supporting the development of a Québec-based supply chain

Supply strategy stimulus for the electricity industry

On November 8, 2022, in Montréal, the Association de l’industrie électrique du Québec (AIEQ), of which we are a member, carried out an extensive member consultation process. The goal was to encourage the electricity industry’s main players to discuss strengthening the responsible supply chain and to promote local manufacturing and purchasing, chiefly through the Association’s PASQÉ initiative (Plateforme d’approvisionnement stratégique Québécois de l’industrie électrique), a Québec-based strategic procurement platform geared to the electricity industry.

This initiative provides financial support and strategic consulting services to businesses looking to diversify their offerings and enhance their ability to meet the needs of public- and private-sector prime contractors in Québec’s electricity industry. Hydro-Québec is proud to have played a part in launching this major initiative, which will help ensure the long-term future of our supply chain, expand local manufacturing capacity, boost economic spinoffs, develop the international reach of Québec suppliers and improve their ability to compete on a sustainable basis.

A more responsible supply chain

Responsible procurement is about making environmental, social and governance (ESG) criteria part of the goods and services purchasing process. For over two years, a cross-functional committee has been taking steps to ensure our supply chain’s sustainability. Those steps included creating a sustainable development questionnaire and incorporating it into our contracting process, developing targeted training sessions and reviewing our guidelines to encourage social economy enterprises.

By 2027, Hydro-Québec aims to meet the Québec government’s responsible procurement target. Its efforts reflect the company’s desire to reduce its environmental impact by shrinking its suppliers’ footprints and enhancing its partners’ social and economic sustainability.

Assessment of local economic spinoffs

In order to develop benchmarks to guide our future actions, we analyzed the footprints of our Québec purchases. A new indicator will be introduced in 2023, allowing us to report on our local purchases. We also set decision-making criteria that strike a balance between our desire to enhance spinoffs in Québec, our commitment to pay the anticipated dividend to our shareholder, and our wish to maintain the lowest possible rates for our customers.

Ramping up sourcing from Indigenous communities

Hydro-Québec believes that Indigenous businesses are a major driver of economic development, not just for Indigenous communities and nations but for Québec as a whole. In 2022, business dealings with Indigenous companies amounted to $227.6 million.