- ABB gives priority to suppliers who have implemented international environmental, social and health and safety management systems
- Sustainability training of suppliers continued in 2007, and more than 600 audits of their sustainability performance were carried out
- Thirty-five percent of ABB’s major suppliers are externally certified to ISO 14001
The sustainability performance of suppliers is a key factor in ABB’s own success and underpins its license to operate. In 2007, ABB continued its special focus to lift suppliers’ performance through carefully-managed cooperation programs, training and auditing. More than 600 audits were carried out.
All new strategic suppliers of materials, components and services are graded according to the severity of their potential environmental and social impacts, and then subjected to appropriate sustainability audits before they can commence business with ABB. This process has resulted in the disqualification of some potential suppliers, in spite of business advantages such as competitive prices.
ABB does not normally perform its own audits of sub-suppliers further up the supply chain. It does, however, encourage direct suppliers to perform sustainability audits of their suppliers in order to ensure that their environmental and social performance is compatible with ABB’s sustainability policies.
Priority is given to suppliers who have implemented the same formal management systems as ABB, such as ISO 14001 for environmental management, AS 8000 for social issues and OHSAS 18001 for managing health and safety risks.
On the environment, 35 percent of major suppliers are externally certified to ISO 14001 and another seven percent have implemented “self-declared” environmental management systems.
Working with the supply chain takes many forms. ABB holds regular meetings with suppliers to raise awareness of both the company’s policies and requirements, and is also involved in initiatives with other organizations to seek common and better approaches on issues such as transportation.
There are always potential improvements at different levels of the supply chain. ABB is working hard with suppliers to raise awareness and performance where it can do so effectively.