Sustainable development

Boschoek conveyor at Rustenburg Section Platinum mine

Cost and quality are no longer the only considerations in our procurement decisions – suppliers who wish to do business with us now also have to meet a basic set of sustainable development criteria. Potential suppliers are required to submit a response to our standard sustainable development self-assessment questionnaire. This way, we are able to make decisions about which products to buy and with whom to do business based on more complete information.

Improving performance

In 2009, we adopted a strategic, risk-based approach to our supplier relationship management of sustainable development in order to identify which of those suppliers required more proactive engagement, including those that should be audited. Since 2009, 109 suppliers have been independently audited against our code. To date, 30 improvement plans have been agreed. We track our suppliers’ progress against these improvement plans and, where necessary, provide assistance to enable them to become compliant.

During the year we conducted 75 sustainable development audits of our suppliers, 67 of which were initial audits, and eight were follow-up audits. Through our audit follow-up processes we have seen an improvement in performance in many of our suppliers, with almost 50% of the critical non-conformances reduced to major and minor rating.

Looking ahead

During 2012, we will continue to roll out our supplier management process, undertake audits of identified suppliers and encourage full implementation of agreed improvement plans. A particular focus area will be on encouraging improved social responsibility performance in our contractors.

Local procurement

To promote opportunities for local businesses, Anglo American supports programmes that increase the competitiveness of both actual and potential suppliers. Find out more about local procurement.