A large part of our sustainability efforts are based on integrating our environmental, social and corporate governance policies (ESG) into our supply chain. The objective of our model is to promote efficiency, quality, sustainability, transparency, the respect of human rights, non-discrimination and equal opportunities.
That is why our processes for selecting, negotiating with and hiring suppliers and contractors are objective and rigorous. We also follow up with continuous quality control evaluations. To guarantee process traceability, we work with socially responsible and collaborative organizations and partners that value creating long-term relationships.
Our Supply Chain
The supply chain type is distinct for each business, with Construction being the business with the highest volumes of orders, which are mostly destined for the projects being executed at the time.
Our supply chain is made up of suppliers (manufacturers and distributors) and subcontractors. It is characterized by a large number of suppliers, high degree of subcontractors, high percentage of local suppliers, wide range of supplier types and the need to adapt to the requirements of each local market.
Strategy and Management Procedures
Our Global Purchasing Policy includes the fundamental commercial, environmental, social and good governance policies that define the relationship between the company and its suppliers. This policy applies to our subsidiaries and markets and is based on the Code of Business Ethics, Corporate Responsibility and Human Rights policies, and the Suppliers’ Due Diligence and Ethical Integrity Procedure.
The Global Purchasing Committee is responsible for coordinating purchasing activity. They ensure good practices and improve the overall purchasing process. The committee is led by the CIOO (Chief Information and Innovation Officer) and is made up of the heads of purchasing in each line of business.
Integral Supplier Management
All our suppliers and partners are selected based on criteria of transparency, integrity, independence and sustainability. Our objective is to provide excellent and efficient services.
Supplier management starts with classification. In this step we measure their criticality, in other words, their critical importance in terms of their purchasing volume or economic activity. We also ensure that the suppliers comply with our Corporate Code of Ethics, Corporate Responsibility and Anti-Corruption policies, and Due Diligence and Compliance procedures.
In the construction department, we have improved our processes to guarantee suppliers’ ethical integrity. Our Green Purchasing Catalog and Responsible Purchasing Catalog were created to encourage green purchases and provide information about suppliers with these types of products.
After the selection process, the supplier or subcontractor starts providing their services and we commit to evaluating them on a regular basis. Incidents are recorded and may cause the supplier to be excluded from future tenders.
Innovation and Technology
We have attained an agile, efficient and transparent supply chain due to innovation and the use of new technologies. At the same time, collaboration with suppliers adds value and contributes to improving our processes.
The company has an Innovative Products Catalog, which is available to all construction sites worldwide. It contains information about new items chosen by the Purchasing Department.
As explained above, sustainability in our supply chain mostly revolves around purchasing decisions. That is why our different purchasing departments promote the purchase of renewable energy, reduced fuel consumption, and electrification of the transportation fleet.
In the construction department, we continue to strengthen the Green Purchasing Catalog as a tool to promote and share the purchase of products that impact the environment positively. Likewise, here at Ferrovial Services Spain, we have created a Responsible Purchasing Catalog to identify suppliers that integrate sustainable, social and good governance practices into their value chain.