Supply chain sustainable development

Supply chain sustainable development

KEY ACHIEVEMENTS — 2009

Through the 'One Anglo' supply chain effort, of which Anglo American Platinum Limited (Amplats) is part, we are building supply chain sustainable development (SCSD) into the way we work and do business. Our holistic approach seeks to ensure that we balance quality and cost-efficiency with procuring from suppliers who are committed to sustainable development.

Some achievements during 2009 were as follows:

Safety

  • Our SCSD documents give prominence to matters of safety. In addition to the existing sustainable development in supply chain policy and supplier sustainable development code, safety questions are incorporated into the supplier sustainable development questionnaire (SDQ) and the supplier qualification questionnaire (SQQ).
  • To support contractor safety performance, a contractor safety summit was hosted in South Africa. We are committed to working with our contractors to achieve our vision of 'zero harm'. Matters of concern raised at the summit have been analysed and priority action areas have been identified.

Policy

  • Strategic suppliers, managed at Anglo American Group level have received the SQQ which contains SCSD questions, and appropriate SCSD steps have been incorporated into the strategic sourcing methodology. This will be rolled out to all Amplats suppliers in 2010.
  • A new online self-assessment SDQ, which informs the supplier audits, and non-conformance guidelines developed in the course of 2009 provide a consistent basis for sustainable development improvement plans and follow-up.

Resources

  • We appointed an SCSD manager for the South African region at Anglo American.
  • Sustainable development metrics have been built into the supply chain balanced scorecard and the performance contracts of the supply chain leadership team.
  • We trained the category team members at Anglo American and supply chain staff at Amplats on SCSD principles and practices. Further training will be done in 2010.

Engagement

  • We conducted 29 sustainable development audits of Anglo American suppliers and seven sustainable development improvement plans have been agreed with suppliers. These audits encompassed suppliers of conveyor belts and idlers, structural steel, grinding balls, grinding mills, electrical cables, repairing services, chemicals and motors. Eleven of the 29 suppliers audited, are Amplats suppliers.