We require our active suppliers and contractors to acknowledge our Supplier Code of Conduct or submit an equivalent standard.
We believe that working with contractors and suppliers who comply with and support our standards is critical to the overall success of our business. Adherence to our requirements on health, safety and environmental (“HSE”) management and performance is essential to our supplier selection process, as is compliance with applicable laws and requirements pertaining to fair labor and human-rights-related standards.
We undertake comprehensive contractor and supplier prehire screenings and monitor compliance on an ongoing basis. This includes screening and monitoring safety, environmental, financial, anti-corruption and fair-labor practices and performance. Similarly, we work to ensure our suppliers of goods and services and our partners across the supply chain, including shipping counterparties, uphold our ethics and performance expectations. We apply robust quality-assurance procedures to assess, monitor and enforce stringent compliance standards for our suppliers and commercial counterparts. We continue to enhance our supplier management systems to support more effective supplier sourcing, screening and prequalification processes; ongoing supplier monitoring; compliance tracking and reporting; and annual supplier evaluation.
Prescreening and ongoing compliance monitoring criteria may include safety and environmental management and performance, drug and alcohol screening, anti-bribery and corruption compliance, mitigation of risks to data protection and privacy, and security and background checks. Our prescreening and monitoring criteria include a range of topics and standards that are key drivers of safe and responsible operations. These include assessments of suppliers’ programs for incident reporting and investigation, behavior-based safety and stop-work authority, short-service employees and management of subcontractors. We have adopted an automated system to support ongoing verification of suppliers’ compliance with our HSE and other requirements and expectations and employ a risk-based approach to supplier insurance requirements.
These due diligence efforts are an integral part of our efforts to help ensure that we work with suppliers who respect human rights principles and align with our values.
Should incumbent suppliers or contractors fail to meet our requirements, we work with them to regain the levels of compliance required to maintain their business with Cheniere.