When we make purchasing decisions, we consider price and quality but also CR standards. We expect that our suppliers respect human rights, have fair employment practices, operate their business in an environmentally responsible way and conduct business relations in a transparent, above-board manner.

 

In March 2007, we approved the main principles of our responsible procurement policy and incorporated them into our general purchasing terms. These principles were then used to develop suitable mechanisms and procedures to ensure that they are integrated into our purchasing strategies, that they are considered when we select suppliers and that our suppliers comply with the principles of the UN Global Compact.

 

The newly developed methods include the creation of supplier risk profiles and regular assessment of supplier performance. We also conduct audits in our supplier’s production plants.

We also rely on our employees to make our suppliers more aware of CR issues in all business operations. In 2007, E.ON UK staff took part in two meet-the-buyer events organized by Action Sustainability. The events are designed to give small suppliers the chance to make contacts with the purchasing staff of large companies. E.ON UK also has responsible procurement training modules for its purchasing staff and for new hires. The company received the 2007 Chartered Institute of Purchasing & Supply Overall Award for its exemplary people development training programs focusing on aspects of responsible procurement including supplier development, stakeholder management and engagement.

We also demonstrate our social responsibility when we select suppliers. We buy from local and national suppliers and aim for a balance that makes business sense. As part of our commitment to the communities we do business in, we often buy services from companies in the region where our facilities are located.

Fuel procurement is another component of our responsible procurement strategy. E.ON imports about twelve million metric tons of hard coal by ship each year.

E.ON uses RightShip Vetting Services, an independent and internationally recognized ship vetting specialist, to ensure that it only contracts ships that meet certain minimum safety, employment and environmental standards. The arrangement has proven to be helpful. E.ON has rejected a number of ships after obtaining information about them from RightShip. This has served to enhance the maritime safety of our coal transports. E.ON is assessing how helpful RightShip can be in other fields of procurement.