Supply chain responsibility

The Supplier Code of Conduct outlines the principles and expectations we hold for our suppliers, reflecting our commitment to ethical and socially responsible delivery. We expect our suppliers to deliver products and services in a way that supports Babcock’s high standards and contributes to the reputation of Babcock and our customers, while recognizing that they operate in different geographic and economic environments.

Babcock is committed to creating a safe environment that enables all those on our operational sites to return ‘Home Safe, Every Day”. We work with suppliers who are passionate and committed to health and safety and demonstrate an ability to meet and promote our safety standards. Our teams work with suppliers on safety and share continuous improvement practices to reduce or prevent accidents and injuries.

We expect high standards of conduct from our suppliers and will not tolerate any behaviours that conflict with our strict compliance codes around:

  • Bribery
  • Corruption and fraud
  • Threats to health and safety
  • Conflicts of interest
  • Improper activities

Protecting the information and physical assets of our customers is an important part of our work. We always expect high standards of commercial confidentiality. For certain types of supply we have exacting standards of security compliance. For these companies we need to know that information is well managed and protected throughout the supply chain. Our approach to addressing cyber security threats is always under review.

We pre-qualify suppliers for certain types of supply and this involves satisfying ourselves that they can meet our standards. Certain suppliers will be selected for audit and close monitoring based on risk assessment or supplier performance. Planned reviews of supply chain risk are undertaken by our business.

Our Procurement teams are working together to develop a group-wide register of pre-qualified suppliers.

Existing suppliers can be invited to complete the registration and qualification process once and access the opportunity of supplying multiple parts of the Group.

There are some specific qualification requirements which our customers specify to us, meaning there many be some additional requirements from individual business units.

We designed the toolkit to support our suppliers in their own development activities, which is particularly useful for Small and Medium Enterprises (SMEs).

What matters most when selecting suppliers is:

  • Credibility
  • Responsibility
  • Quality
  • Service performance
  • Cost efficiency

Many of our suppliers are subject matter experts. We select and manage suppliers to support our experienced workforce in delivering complex engineering services.

Supplier diversification, a key strategy in our supply chain management, plays a pivotal role in maintaining the robustness of our operations. The diverse nature of our business necessitates a wide range of talents and abilities from a broad spectrum of suppliers, underscoring the importance of your work.

We want to spend time talking to our suppliers about new ideas, operational performance and total cost opportunities – not about payment. We understand the importance of predictable customer payments when running a business.

Our suppliers have a critical responsibility for getting paid on time – by delivering on time and in whole, following the required billing processes, and adhering to our standards for invoicing.

We work in close collaboration with selected suppliers – big and small.

Our approach to Supply Management includes:

  • Contract management
  • Supplier performance management
  • Supplier relationship management
  • Supplier development

Supplier development activities target improvements that benefit both our operations and the supplier’s capability. These benefits will ultimately enhance performance standards that benefit our customers.