Sustainable Procurement
Sustainable Procurement
Sustainable procurement is a powerful lever for influencing suppliers’ Sustainability performance and business conduct. We recognise the
opportunity to positively impact communities by taking a considered approach to how and where we source the goods and services needed for the business. By addressing sustainability issues and considering our Sustainability commitments in our end-to-end procurement practices, we can more effectively manage sustainability risks and opportunities, minimise adverse impacts and promote positive environmental, social and economic outcomes.
We are committed to conducting business in a responsible way and expect the same from our contractors and suppliers. To improve the supply chain’s social and ethical footprint, we seek to screen and work with contractors and suppliers who share our values, and expect they follow high standards of governance and compliance with all applicable laws and our policies, and are committed to following our way
of doing business, including demonstrating that they have the attributes set out in our Modern Slavery Statement, Supplier Code of Conduct and Procurement Statement, which are endorsed by the Board.
Our suppliers are required to be accountable for their actions and commit to ensuring they conduct their business in alignment with our values and behaviours. We have included this as a requirement within our contracts for which the parties must be compliant.
Supply chains represent the people who do the work to supply the goods and services that we need to operate, the local communities whose needs and expectations must be understood and respected, and the environment that sustains our communities and provides the natural resources we need for our products. We choose to partner with suppliers who share our core values.
A Procurement Statement provides the framework under which Evolution procures goods and services and is aimed at ensuring the Company applies its adopted values (Safety, Excellence, Accountability and Respect) to procurement activities and that the outcomes reflect maximising value for the Company and our relationships with our suppliers.
Suppliers play a key role in helping to deliver on our corporate strategy. Our Supplier Code of Conduct outlines the expectations we have of our suppliers. Suppliers are required to be accountable for their actions and commit to ensuring they conduct their business in alignment with Evolution’s values and behaviours.
A Sustainable Procurement Framework is being developed which aims to ensure that sustainable procurement practices are embedded in our business, ensuring ESG standards are maintained and continuously improved throughout the procurement lifecycle.
Evolution continues to work in partnership with our supply chain to continuously improve our approach, develop sustainable practices and deliver value to our business and communities. We strive to work with suppliers and contractors who share our values and are driven to improve our supply chain’s social and ethical footprint.
Gary Ward, Group Manager Supply
$230 million
local spend (73% increase compared to FY22)
Zero
reported cases of bribery or corruption
Third Modern Slavery Statement released
$261M contribution to local and regional businesses and organisations
Our Sustainable Procurement activities are conducted in accordance with our Human Rights Performance Standard, Modern Slavery Business Guide, and Supplier Code of Conduct. They focus on:
- Prohibiting any form of forced labour, including child and slave labour and human trafficking
- Identifying, assessing and addressing modern slavery risks through the Sustainable Supplier Risk Management program in alignment with the Modern Slavery Act 2018 (Cth)
- Supporting local, regional, and First Nation communities
- Increasing Indigenous participation
- Supporting small business
- Supporting our Net Zero future
- Increasing capability and awareness among internal and external stakeholders, including suppliers
- Communicating our expectations and commitments to human rights to all stakeholders in line with our various policies and procedures, including the Sustainability Principles
- Monitoring the effectiveness of our human rights policies and procedures
In FY23, Sustainability continued to be strengthened as a performance driver in Evolution’s procurement process through the following actions:
- Developing the third Modern Slavery Statement which increases awareness of modern slavery risks across the business and improves management and transparency across global supply chains
- Requesting that our medium to high-risk suppliers complete a Modern Slavery Self-Assessment Questionnaire (SAQ) in order to identify and take action on any modern slavery risks in our Tier 1 supply chains
- Undertaking a number of face-to-face Modern Slavery Deep Dive Sessions with key suppliers to gain a broader understanding of how they are identifying, managing and mitigating modern slavery risks within their supply chain and to enable opportunities to shared learnings regarding modern slavery and sustainability
- Conducting Sustainability and business conduct evaluations as part of our tender processes
- Participating in the Modern Slavery Communities of Practice (United Nations Global Compact) enabling awareness, capability building and progress
- Undertaking a review of our Indigenous procurement approach in collaboration with the Sustainability Team, developing a baseline including an Indigenous supplier register and a spend dashboard to better understand how and where we are spending our money with Indigenous and First Nations businesses and to identify gaps and opportunities
- Strengthening supplier relationships and partnerships, including with our supplier AGL Energy, where we secured a first-of-its-kind retail agreement through a competitive, long-term power purchase agreement for our Cowal Gold Operation which supports a
transition to renewable power - Embedding a focus on Net Zero as part of our overall procurement practices, particularly for the sourcing of electricity and energy intensive goods
In FY23, we had 3,629 active suppliers and contributed $1.75 billion in payments to suppliers.
Local and Regional Procurement
Management Approach
Procuring goods and services from local and regional suppliers promotes economic development and associated benefits in the communities in which we operate. We monitor and report direct procurement spend (paid by Evolution) and indirect spend (paid by subcontractors to Evolution). Our approach is underpinned by local economic procurement decisions and processes that bring about significant positive impacts to local economies.
Local and regional procurement practices focus on:
- Promoting an open and shared culture across all our workplaces
- Providing ongoing training and education
- Upholding equal opportunities, diversity and anti-discriminatory practices
- Hiring employees, contractors and suppliers from the local community
- Engaging with local communities, including key contractors, in various forums to discuss subcontracting, supply and employment opportunities
Performance
In FY23, $261 million was spent directly with local and regional suppliers, including $230 million with local suppliers, a 73% increase compared to FY22. The increase in this spend attributed to the first full year of ownership of Ernest Henry, and its associated procurement, as well as ongoing active efforts to engage local, regional and Indigenous suppliers across all operations.
Social Responsibility
Indigenous Stakeholder Outcomes
Cultural Heritage
Community Engagement and Investment
Modern Slavery and Human Rights
