Supply chain

The Supplier Roadshow is more than just an information-sharing event; it serves as a deliberate effort to engage with local businesses surrounding our operating assets to cultivate an interconnected community.

Working alongside some of our primary suppliers — Bechtel, Baker Hughes  and Zachry — our objective is to identify potential partners that align with our vision and are capable of providing high-quality goods and services essential to supporting our operations in the Coastal Bend, Southeast Texas and Southwest Louisiana regions. 

The Roadshow offers a dynamic platform featuring peer-to-peer roundtables that facilitate connections among local businesses and contribute to the formation of ecosystems with Cheniere’s prime contractors and other regional suppliers. Additionally, one-on-one discussions and panels provide opportunities for tailored conversations, potential partnerships and direct engagement.

This collaboration extends beyond supplier relations to involve various other functions within Cheniere, including Culture and Engagement, HR, Operations, Policy, Government and Public Affairs (PGPA) and other key departments. Notably, the involvement of site leadership enhances the depth and richness of interactions, demonstrating Cheniere’s holistic commitment to building a competitive, collaborative, inclusive and thriving business ecosystem.

In our efforts to manage third-party risks, we select suppliers who willingly adhere to our stringent anti-corruption and economic sanctions compliance standards. Vigilance is key, and we actively monitor our relationships with third parties for any signs of corruption or violations of economic sanctions. Following the guidelines outlined in our Anti-Corruption and Economic Sanctions Policy, we employ a robust risk-based due diligence process and continuous monitoring mechanisms to address potential risks related to corruption and economic sanctions violations from third-party engagements.

Our third-party risk management is systematically executed through the Cheniere Integrated Management System (CIMS), which provides a framework for embodying our company values, driving strategic initiatives, ensuring consistency, controlling risk and achieving operational excellence.

As part of our enhanced comprehensive supplier assessment program designed to uphold stringent standards in safety, environmental management and overall performance, suppliers undergo a compulsory prescreening and ongoing compliance monitoring, which form integral components of the assessment process. Criteria cover a range of areas including safety and environmental management, drug and alcohol screening, anti-bribery and corruption compliance, data protection and privacy, risk mitigation and security background checks. These criteria are thoughtfully selected to align with principles of safe and responsible operations, ensuring suppliers adhere to robust standards across all aspects of their operations. Executive management is responsible for oversight. Supplier compliance audits (including audits conducted on-site) are performed periodically. 

The prescreening and monitoring criteria encompass diverse topics and standards, driving safe and responsible practices within our supply chain. This integrated approach includes evaluations of incident reporting and investigation programs, behavior-based safety practices, stop-work authority implementation, management of contingent labor and subcontractor oversight. By integrating these critical elements into our evaluation process, we not only ensure compliance with industry-leading standards but also promote accountability, transparency and ethical business practices throughout our supply chain.

Our goal goes beyond mere compliance to encompass a dedicated assurance program. Through ongoing assessment, feedback mechanisms and collaborative efforts, we seek to cultivate a supply chain ecosystem that not only meets but exceeds the highest standards of safety, environmental responsibility and operational excellence. This forward-thinking approach underscores our unwavering commitment to continuous improvement and resilience in our supply chain operations.

Our Supplier Code of Conduct sets out our commitment to respecting internationally recognized human rights in our operations. We strive to collaborate with suppliers who respect human rights standards, including those related to fair wages and anti-discrimination. Cheniere requires all suppliers to confirm they do not use forced labor or child labor in their supply chains.

We have established robust processes and procedures aimed at identifying and mitigating risks related to modern slavery and human trafficking. As part of our commitment, we conduct an annual review of our business operations and supply chain, focusing specifically on areas that may be susceptible to elevated risks in these areas. The shipping industry, known for its vulnerabilities regarding health, safety, ethics, human rights and labor rights, is a key focus of our assessments.

Our approach is detailed in our annual U.K. Modern Slavery Act Statement, where we transparently outline various programs aimed at identifying and addressing these risks. A principal component of our strategy is our in-house marine assurance program, through which we conduct thorough assessments of LNG carriers chartered by us or visiting our facilities. These assessments ensure compliance with the International Labour Organization’s Maritime Labour Convention, which establishes essential international standards for seafarers’ rights and working conditions, covering aspects such as wages, repatriation, employment contracts and accommodation.

To manage the integrity of our supply chain, we conduct thorough pre-selection screening of contractors and suppliers and maintain ongoing compliance monitoring. This includes assessing safety, environmental practices, anti-corruption measures and fair-labor performance. Similarly, we work to ensure that our goods and services suppliers and partners throughout the supply chain comply with our ethical standards and performance expectations. We engage with our supply chain partners to encourage improved environmental and social performance. If suppliers fail to meet our ESG requirements and standards, they may be excluded from future business engagements with our company.