Workers in the value chain (S2)
Employment conditions, equal treatment and equal opportunities for all, and other work-related rights
The expansion and maintenance of our networks and the assets for supporting those activities result in a substantial demand for materials.
The increased workload due to the energy transition has led to more purchases of goods and services from our direct and indirect value chain partners. That has an impact on them. On the one hand, this impact is positive, because increased demand creates jobs, and because agreements on employment conditions, such as working hours and safety, can be reached in our direct relationships with business partners.
On the other, the impact is also negative, especially further up the chain. Higher demand means more mining of raw materials and increased production of specific materials and components. This can negatively impact the environment and working conditions. Lengthy product chains are associated with risks in terms of human rights compliance. Through them, we indirectly contribute to the impact on circumstances elsewhere.
Outsourcing, investments and production sometimes lead to an increased risk regarding the recognition and observance of norms in such areas as fundamental human rights, safety and the environment. Findings from external research also show that there are risks to workers’ rights in our value chains. We will investigate these risks further in 2026, partly in collaboration with NGOs. Collaborating with these parties will enable us to increase transparency in our value chain. Based on the identified risks, we can develop a collective action plan with specific measures to mitigate those risks.
We organise supplier assessments, audits and consultation meetings to address topics such as safety, working conditions and compliance with labour and human rights for the workers of our partners across the value chain. The resulting insights are taken into account in being a responsible client and in our procurement criteria and forms of collaboration. This is how we ensure that the interests and rights of workers in the value chain are always considered.
Within our value chain, we are seeing that adverse impacts on workers can be both incidental and systemic, such as staff shortages, increasing workloads and challenges resulting from the acceleration of the energy transition. These insights enable us to implement targeted measures together with our value chain partners, including a stronger focus on safe working practices and clear agreements on working conditions.
Impacts, risks and opportunities
Negative impact – Poor working conditions in the value chain lead to a decline in the welfare of workers in the value chain.
Risk – Insufficient compliance with employment conditions in the value chain may lead to reputational harm and higher costs.
Risk – Breaches of labour rights and human rights in the value chain could lead to Alliander being held liable or fined.
Policy and approach
Wherever they are in the world, workers deserve to work in humane, decent and safe conditions. At Alliander, ethical and honest business practices are paramount. By setting criteria for circularity, carbon emissions, working conditions and the social performance of business partners, both they and Alliander will contribute to sustainability and increase the social impact of their spending. These criteria are laid down in Alliander’s code of conduct for business partners. This code is based on OECD guidelines and also respects the international treaties on employment conditions and working environments drawn up by the International Labour Organization (ILO).
This code of conduct for business partners sets requirements for matters such as the ban on child labour, human trafficking, forced labour, discrimination, safety, the environment and employment conditions. Alliander expects business partners to comply with this code of conduct in their own business operations and in their dealings with their own suppliers upstream.
If a situation arises where Alliander or a business partner causes a human rights violation, this can be reported through the reporting procedure. In the event of potential violations, we take action appropriate to the situation and our level of involvement.
Within the sector, a report was received regarding a possible breach of the Fair Labour Association (FLA) / International Labour Organization (ILO) guidelines at a supplier that had moved its production from Europe to Asia. The parties involved conducted a joint investigation. It ultimately led to the supplier committing towards Alliander to make improvements, which Alliander actively monitors.
Compliance with the code of conduct in the chain
In interviews with some large suppliers it was noted that, like us, they try to ask questions of their suppliers about compliance with the code of conduct. We perform audits to monitor compliance with agreements on workers’ rights. In 2025, we performed 27 human rights audits, whereby we used a new framework of standards for 8 of these audits. These are snapshots which are planned in advance. Alliander aims to promote reporting and the visibility of abuses. This requires us to form a reliable and equal partnership with our direct suppliers.
Actions
In late 2024, we updated the code of conduct for business partners. It now states more explicitly what we expect from suppliers, how to report (potential) violations and how we take appropriate action in the event of possible breaches. In 2025, we developed a policy plan on workers in the value chain, setting out our ambition, planned actions and policy guidelines regarding workers in the value chain. This plan will be approved and implemented in 2026.
We gained initial insights into the risks related to human rights, labour rights and environmental aspects in the supply chains for contracting, cables, transformers and gas pipes. In 2025, we maintained our improvement drive for these high-risk core activities, following an audit conducted by an external firm and the recommendations that came out of that audit.
In 2025, Alliander also improved its human rights audit processes. We developed a framework of standards on human rights to assess both compliance with the code of conduct for business partners and respect for human rights during audits at our business partners.
From 2025 onwards, the topic of corporate social responsibility (CSR), including both human rights and environmental aspects, is included in strategic supplier consultations to promote transparency and to take and monitor joint action.
Safety incidents are evaluated and discussed on the contractors platform. The purpose is to learn so that we can improve our work processes and continuously increase safety at work.
Objectives and results in 2025
Alliander has not yet set specific objectives regarding workers in the value chain and current actions are being defined more precisely in connection with the ESRS. This will be a baseline measurement that we will use to set realistic targets in 2026. Each year, we review whether our direct suppliers of components we regard as critical recognise and comply with correct working and environmental conditions, in line with our code of conduct for business partners.
Our plans
The key due diligence actions that Alliander will focus on in 2026 will be aimed at performing human rights audits at strategic suppliers, following up on due diligence within the supply chains for cables, transformers and contracting, and increasing the visibility of the grievance mechanism for reporting irregularities in the value chain.
Improving audit processes and increasing transparency in the whole of the value chain (where our raw materials ultimately come from) are two of the most important activities relating to supply chain responsibility that Alliander will continue to undertake in the next few years. We perform human and labour rights audits at most of our strategic suppliers. Having suppliers fill in a standard questionnaire based on applicable laws and regulations and assessing the results promotes transparency in the value chain and provides insight into potential irregularities, enabling appropriate (joint) action. Whenever we identify new risks with an impact on human rights, we carry out risk-based audits. We implement a continuous due diligence process in accordance with the OECD Guidelines, making environmental and social impacts visible. Each year, we identify, prioritise and address the most significant risks for workers in our value chain.
Over the coming years, Alliander will take stock of the types of workers across the value chain, including downstream workers. This will also be charted geographically and we will examine on a product-by-product basis whether there is a structurally increased risk of human rights abuses, such as child labour or forced labour. Structural consultation with workers throughout the value chain is important, including on the information channels to be maintained and regular reporting. We are fostering this by raising awareness of Alliander’s grievance mechanism for the reporting of irregularities and misconduct, discussing this topic in strategic supplier meetings and engaging in dialogue with employees themselves or their representatives, such as trade unions.
By extension, we will work on policies and processes to contribute to rectification where we have caused or contributed to a material negative impact on workers in the value chain. In the event of irregularities further upstream or downstream in our value chain, we will endeavour to exert our influence to stop or limit these irregularities. Regular evaluations will be performed, including of the effectiveness of the measures taken. In addition, we aim to collaborate within the sector and with NGOs to prevent and mitigate human rights violations in the value chain and to implement remedial measures.
From 2026 onwards, we will assess the effectiveness of our current grievance mechanism for workers in the value chain.
Under the Accreditation Scheme, we require contractors to demonstrate that they have achieved at least level 3 on the Dutch Safety Culture Ladder.
Working safely is not limited to our own organisation; it also affects our value chain partners, contractors, suppliers, customers and local residents. We are responsible for implementing measures to prevent accidents involving employees, including those of our direct and indirect value chain partners, and members of the public. Alliander’s incident reporting system will provide the technical means to systematically log incidents and near-misses involving value chain partners and members of the public. In this regard, Alliander wants work to be performed in line with specific safety protocols and standards for working with gas and electricity infrastructure, such as VIAG and BEI. Contractor and subcontractor employees must comply with these protocols and standards as well.
