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Responsible supply chain development

Siemens Gamesa assesses its main suppliers in-house along technical, economic, environmental and social criteria. Among other things, the company analyses the existence of an environmental policy, specific workplace health and safety aspects and the human rights record and ethical conduct of its suppliers.

In fact, Siemens Gamesa’s General Purchasing Terms and Conditions explicitly refer to respect for human rights and labour practices as well as evidencing a clear-cut zero-tolerance stance on fraud and corruption which the company is working to implement across its supplier base.

When negotiating supply agreements, in addition to the contractual terms required under prevailing legislation, Siemens Gamesa negotiates the inclusion of the social responsibility clauses enshrined in the Code of Conduct applicable to its suppliers. This Code includes rules designed to ensure that the labour conditions across its supply chain are safe, that their employees are treated respectfully and fairly and that their business conduct is ethically, socially and environmentally responsible.

One of the programmes which Siemens Gamesa’s 2015-2017 Master CSR Plan pivots around is the responsible development of its supply chain. Against this backdrop, Siemens Gamesa is working on a series of initiatives, such as a system for registering, classifying and controlling suppliers which will analyse, classify and evaluate key suppliers, key meaning suppliers which could adversely or materially impact delivery of the company’s strategic objectives in the event of non-compliance or defective performance.

Elsewhere, the supplier audit system, in the process of being implemented, is emerging as an effective tool for evaluating the performance of key suppliers in respect of the expectations vested in them in applicable policies and codes, while ensuring continuous supplier improvement in parallel. In 2015, the company fully audited 15 of its key suppliers.

In addition, Siemens Gamesa stays in permanent contact with its suppliers, striving to foster open and smooth communication. In 2015, the company organised supplier events in China, Spain and Germany with the aim of sharing the company’s challenges and goals and informing them about new market requirements. Other communication tools include the supplier portal, designed to facilitate the exchange of technical documentation, and Siemens Gamesa’s website, which hosts the general purchasing terms and quality manual for suppliers.

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