In 2011, Abengoa developed a system of responsible purchasing that will be implemented in four stages and which primarily seeks to incorporate sustainability criteria into supplier assessments and to unify and standardize these processes, which currently differ due to the diverse characteristics of the company’s chosen suppliers and the variety of company activities.

This process comprises four stages: preliminary diagnostic of the purchasing system, supplier analysis, critical supplier audits and, finally, supplier assessment or rating.

 

Implementing the system has required collaboration among Abengoa’s different purchasing departments in order to carry out an exhaustive diagnostic study of the existing purchasing system (phase 1), in addition to selecting evaluation criteria in keeping with the particular features of each company activity and carrying out risk analysis to determine suppliers posing a greater threat in terms of CSR-related risk (phase 2). Variables taken into account in conducting this analysis include the supplier’s country of origin, supply nature, degree of visibility and solvency risk.

During 2011, Abengoa analyzed approximately 17,500 suppliers in terms of human rights-related risk over the course of the year. Of all the suppliers analyzed only 3.5 % were flagged as critical suppliers.

The process is now in Phase 3, with critical supplier audits currently under way. To date, 55 on-siteaudits have been conducted, which amounts to 9 % of the critical providers identified.

Audits are intended to determine the extent to which Abengoa suppliers ensure compliance with the principles set down in the company’s Social Responsibility Code, to which all Abengoa providers must adhere in order to work with the company (phase 3).

Furthermore, a supervisory committee will be set up to ensure effective auditing operation, establishing targets to be met and analyzing results obtained.