Supply chain responsibility
Sub-topic 1: Labour and human rights in the supply chain
Description of the topic
Our procurement expenditure increases sharply each year due to rapid growth of the work package. The expansion and maintenance of our networks and the assets for supporting those activities result in a substantial demand for materials. Outsourcing, investments and production in other countries sometimes lead to an increased risk regarding the recognition and observance of norms in such areas as fundamental human rights, safety and the environment. Specifying procurement criteria and vetting suppliers in the product chain is instrumental in taking our corporate social responsibility.
Impact on people and the planet
We have a large impact on direct and indirect supply chain partners through the growing value of the goods and services we procure from them. This generates jobs and economic capital. The extraction of raw materials and production of specific materials and components takes place at numerous production sites worldwide. This has an impact on the environment and working conditions in the Netherlands and worldwide. The procurement of materials, generation of waste and emissions of CO2 and other substances cause ecological harm. Safety and working conditions have an impact on human capital. Lengthy global supply chains are associated with risks in terms of human rights compliance. It is possible that we indirectly contribute to the impact on circumstances elsewhere.
Risks
Insufficient visibility of deficiencies in the chain and/or among chain partners; unwitting involvement in abuses elsewhere; insufficient expertise and capabilities to identify risks in a timely manner.
Opportunities
Joint investigative supply chain projects and availability of information.
Impact on Alliander’s value
The developments in supply chains and elsewhere have an impact on deliveries to Alliander. Shortages, logistical problems and conflicts affect the completion of the work package and inventories (manufactured capital) and can lead to price disadvantages or losses in terms of financial capital.
Relationship with Alliander’s impact model
Indicators for financial capital, manufactured capital and natural capital.
Stakeholder expectation
With an annual procurement volume of about €1.5 billion, we are a major purchaser of products and services in the Netherlands. Stakeholders expect us, together with our suppliers, to ensure that our procurement is as sustainable as possible. If we can persuade our suppliers to take sustainability as seriously as we do ourselves, we can generate a significant positive impact through our supply chain.
Strategic pillars
Future-proof foundation.
Our long-term objective
We actively seek to improve our supply chain performance. This includes making plans with our suppliers to reduce carbon emissions and promote responsible operations. In addition, all suppliers must comply with the Alliander Code of Conduct including minimum ILO, OECD and UN requirements.
Alliander’s assessment and contribution
All suppliers are required to comply with our Supplier Code of Conduct. Each year, we review whether new suppliers of critical components recognise and comply with correct working and environmental conditions. The assessment of how suppliers recognise and comply with fundamental requirements relating to human rights, safety and the environment is part of our CSR and procurement policy.
Stakeholder information
Sub-topic 2: Responsible procurement
Description of the topic
Our procurement allows us to make a difference in terms of what we buy and who we buy from. Where possible, we decide in favour of a more sustainable choice and look for initiatives that advocate broader value such as social development or bringing a relevant innovation to the market.
Impact on people and the planet
Through targeted procurement, we have an impact on direct and indirect supply chain partners in terms of the growing value of the goods and services we procure from them. This generates jobs and economic capital, and supports innovations and more sustainable products. Where possible, we limit the ecological damage associated with material procurement, waste and emissions of CO2 and other substances. In addition to safety and working conditions, there may be an element of human capital development in the form of the experience employees can gain in, for example, training companies.
Risks
Insufficient product quality or poor delivery performance due to an underestimation of risks in the early stages; higher start-up costs.
Opportunities
Reduction of the ecological footprint, promotion of innovations and launching customership.
Impact on Alliander’s value
Responsible procurement can be a reason to look at sustainable development/redevelopment of a product with supply chain partners, for example, more sustainably produced cable, circular renovation of buildings and waste-free catering. This generates new insights and experiences that can lead to new value for Alliander as a company, and for society in general.
Stakeholder expectation
With an annual procurement volume of about €1.5 billion, we are a major purchaser of products and services in the Netherlands. Stakeholders expect us, together with our suppliers, to ensure that our procurement is as sustainable as possible. If we can persuade our suppliers to take sustainability as seriously as we do ourselves, we can generate a significant positive impact through our supply chain.
Strategic pillars
Future-proof foundation.
Our long-term objective
CSR is included in every category strategy, sourcing plan and procurement documentation.
Alliander’s assessment and contribution
Our procurement policy contributes directly to Alliander’s CSR policy. Together with our suppliers, we aim to make a net positive contribution to SDG 12 (Responsible Production and Consumption). In doing so, we support the achievement of our socially responsible procurement objective in the Netherlands, while also promoting further sustainability among our suppliers through our Socially Responsible Procurement statements.