Shell buys goods and services from 120,000 suppliers across the world. We are working to make sure these suppliers and our contractors operate in environmentally and socially responsible ways.
In 2011, we developed the Shell Supplier Principles. These set out what we expect from our suppliers and contractors in the areas of business integrity, HSSE & SP, and labour and human rights. For example, we require our suppliers to use energy and natural resources efficiently, and to continuously look for ways to minimise waste. We are also asking our suppliers to have a mechanism in place to log grievances.
We are working with our existing suppliers to implement the Shell Supplier Principles. Beyond what we consider minimum requirements, we will conduct due diligence checks starting in 2012 to identify the level of compliance of our suppliers and contractors with the principles.
Before the award of a new contract, we will assess each supplier to check its ability to comply with the principles (see opinion, below). During the course of the contract, we will assess the way the supplier is performing in the areas covered by the principles.
As a result of these assessments, we may identify further steps needed to meet the standards set out in our principles.
OPINION
“Achilles has been managing the process of assessing suppliers for Shell for over 20 years, and we have been helping to launch a new global online system for all Shell suppliers. Shell is taking a more active role in managing suppliers to ensure that its business principles are followed throughout the supply chain. Shell’s thinking has evolved from looking mainly at health, safety, environment and quality to being increasingly focused on areas such as sustainability and ethical behaviour. There is now a stronger willingness to build local supplier capability, ensuring work and value is being put back into the communities in which Shell operates. Shell has included these requirements in its new supplier principles and is using the new system to embed these new requirements in its supply chains across the globe.”
Colin MaundChairman of Achilles Group, Abingdon, UK
