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Ethical supply chain

2017 Results

14

Vendor qualification audits on labour rights.

6,918

Vendors qualified in 2017.
SDGs
2018 Objectives
Strengthen the supplier control system during the execution phase by offering training to functions that have direct contact with suppliers at their operational sites.
Vendors are key players and a sustainable supply chain is a prerogative of our business and success

We are committed to keeping and developing long-lasting understanding and trust with our vendors and business partners. The Saipem Ethical Supply Chain Management System consists of three different interrelated phases: vendor qualification; purchase document preparation and award; and vendor performance monitoring and feedback.

Vendor qualification: a vendor risk assessment is carried out during the vendor qualification phase to identify vendors based on ethical and sustainability risks depending on the country of operation and/or level of criticality of the products/services.

Purchase document preparation and award: environmental, social and governance requirements are dealt with in Saipem’s general terms and conditions. Vendors shall declare receipt and acknowledgment of the contents of the ‘Sustainability Policy’, Model 231/OM&C Model and Saipem Code of Ethics.

Vendor performance monitoring and feedback: vendor performance is continuously monitored and our relevant functions are also asked to provide feedback regarding respect for workers’ rights and the protection of health and safety.

SELECTING RELIABLE AND ETHICAL VENDORS

From the human and labour rights (HLR) perspective, vendors operating in countries classified as high risk in these terms are analysed based on the information and documents they submit during the qualification phase (questionnaire). Similarly, for specific commodity codes considered as high risk for health and safety, a specific assessment is carried out to evaluate the Vendor’s HSE management system. The qualification process may require an assessment visit which consists of on-site verification of vendor activities (also including labour rights aspects in case of vendors operating in high risk countries).

~100 vendor qualification questionnaires on labour rights analysed in 2017

+1,280 vendor qualification questionnaires on labour rights analysed since 2013

SAIPEM TAKES A CHANCE ON ITS SAUDI VENDORS

We have been awarded a contract for the Hawiyah Gas Plant Expansion Project located in the south-east of the Arabian Peninsula. The scope of work includes the construction of two natural gas treatment units, gas dispatch units and associated utility systems. We have extensive experience and knowledge of the Saudi context and broad knowledge of local suppliers and subcontractors: leveraging on this information, we will select a series of local vendors to be supported to improve their performance through a specific development plan. We will work closely with them to encourage long term creation of businesses in the Country.

STRENGTHENING THE HSE COMPETENCE OF SUBCONTRACTORS

Cooperation and engagement in HSE-related issues contribute to fostering the win-win strategy we have established with our subcontractors. For this reason, HSE training was delivered to subcontractors to help improve their knowledge and competencies in the field. A common commitment to HSE allows significant benefits to be obtained from all project activities in terms of results and integration levels.

+54% HSE training man-hours delivered to subcontractors compared to 2016

PROMOTING DECENT WORK ALONG THE SUPPLY CHAIN

In line with our commitment not only to respecting but also to promoting human rights, since 2016 an internal training programme on human rights and the supply chain has been implemented for different functions involved in the supply chain control system. The training programme includes a general introduction on human rights, focusing on international standards and principles and on our commitment to guaranteeing decent work to suppliers and subcontractors. A second part analyses relevant topics, based on the ILO Fundamental Conventions. The third part highlights the role each employee can play in order to report or provide feedback on serious situations when human rights are not respected that may be encountered at vendor sites.

+ 260 participants since 2016

8 countries involved

RESPONSIBLE BUSINESS

Technology and operational innovation

Innovation as a strategic leverage for Saipem.