Supplier Management

Significance

BPP has operated its business, putting top priority on the sustainable supply chain management in order to build confidences among its stakeholders and to create values as well as competitive advantages effectively so as to reduce costs and risks possibly arising in the supply chain, such as a lack of production’s raw materials, a delay from products awaiting for being manufactured, inclusive of environmental, social and governance (ESG) risks in the supply chain, which may affect the operation, confidence and reputation of BPP

Management Approach

BPP has established the operating guidelines for supplier management according to the sustainable supply chain policy in order to achieve its goals to create sustainable values throughout the supply chain as follows:

Procuring with transparency and fairness in accordance with the code of conduct principle of BPP.
Integrating the targets on safety, occupational health, environment, social and governance (ESG) with the supply chain management strategies and other associated policies as well as searching for opportunities to improve and mitigate risks likely to arise in the supply chain.
Driving the sustainable supplier management in production units through the integration of ISO 9001 Management System Standard, ISO 45001 Occupational Health and Safety Management System Standard and ISO14001 Environmental Management System Standard.
Verifying supplier’s qualifications relating to ESG in order to be able to properly identify and manage supply chain risks.
Promoting business operations with suppliers adhering to ethical principles with social and environmental responsibility, respecting to human rights, and complying with the supplier code of conduct and any associated policies.
Implementing any procedures to ensure that suppliers comply with laws and local regulations as well as international labor standards, such as setting up selection criteria, stipulating in the procurement contracts, and monitoring suppliers’ operations associated with environment, society and corporate governance, etc.
Supporting local procurements in order to create economic returns in areas where BPP has operated.
Developing the supplier code of conduct and applying it to supplier management by starting with the critical supplier.
Encouraging suppliers to expand the use of sustainable practice guidelines throughout the supply chain for the continuous development and efficiency.
Establishing the key performance indicators and regularly monitoring operations to ensure that the suppliers operate in accordance with the standards and laws set, for example inspecting the supplier’s operating sites, etc.
Establishing the environmental, social, and corporate governance assessment forms in reference to the supplier code of conduct of BPP
Regularly disclosing the supply chain’s sustainable performance to stakeholders.

Performance

No grievances relating to supplier management.
No incidents in which suppliers violate the laws, human rights, labors and environment.
Achieve zero fatality.
Achieve zero LTIFR.

Key Activities and Projects

1. Implementation of “Smart Access Control System” to improve contractor’s safety operations

The contractor’s safety operation is one of the important factors for occupational health and safety management of the power plants. Power plant’s operational risks arise from some contractors working at the plants without being trained and tested on safety prior to working. In 2022, the COVID-19 outbreak remained a challenge for the power plants in China to continuously generate power and steam for the industrial sector and local communities.

Zouping CHP Plant set up safety measures and prevention of COVID-19 pandemic, by conducting health checks and taking temperature of employees and contractors before entering into the operational area. The intelligent access control system was used to replace the traditional manual check, which requires a large number of employees to operate, takes a long time, and may not cover all contractors. This posed a safety risk. The intelligent area access control system consists of:

Occupational health & safety training and testing system: Employees and contractors must pass the test on occupational health and safety before being approved to enter the area within the specified period. A database of people who have passed the test has been created, while these approved people have to be retested regularly according to safety rules.
Temperature monitoring system: The system has been set up at the entrance and can automatically check the temperature of employees and contractors before entering the area.
A specific training system to match the nature of work and risks of each department.

Benefits of using a smart access control system are as following:

All employees and contractors have knowledge and are well aware of safety prior to working in the area. A specific training was conducted for 240 employees and 2,561 contractors.
Zouping CHP Plant was able to deliver power and steam as the target set. The plant was able to carry out its production without any interruption caused by the COVID-19 epidemic.
Completing safety trainings in accordance with legal requirements.
Reducing risks related to accidents arisen from unsafe operations of employees and contractors.
Decreasing the number of working hours, including manpower to organize trainings and health checks before entering the operational area.

Document Download

Sustainable Supply Chain Policy

Supplier Code of Conduct