BHP targets responsible suppliers for supply chain program

BHP's Western Australia Iron Ore operations Image: BHP

BHP has reiterated its commitment to socially responsible partnerships in the area of human rights with the launch of the BHP Ethical Supply Chain program.

The company stated that it recognised that many men, women and children around the world were victims of human rights abuse and that a growth in regulatory instruments was indicative of the increasing expectations on businesses like itself to address applicable human rights risks.

The program continues the mining giant’s pledge to increase the level of transparency in its supply chain, with this being a key consideration for any company wishing to partner with BHP.

BHP said the program also helped BHP’s suppliers manage human rights risks across their own supply chains, positioning BHP to respond to the evolving human rights landscape.

“We remain committed to the ongoing partnership with our suppliers to build long-lasting productive and sustainable relationships to unlock shared value for all of our businesses,” BHP stated.

“As the world’s leading resources company with a procurement spend of $US20 billion across 10,000 suppliers, BHP recognises the responsibility and opportunity we have to identify understand and seek to mitigate human rights across our supply chain together.”

BHP chief procurement officer Sundeep Singh said as the coronavirus pandemic sweeps the globe, the company must continue positive collaboration and recognise the need to react to risks for downstream supply chain workers and vulnerable people.

“Human rights violations are the furthest anyone could possibly be from the shared value we want to generate with our partners,” Singh said.

“The Ethical Supply Chain program continues our commitment to increasing the level of transparency in our supply chain and partnering with our supply base to do this.

“It remains a critical consideration for anyone that wants to do business with us.”

BHP also has an Ethical Supply Chain guide, which provides industry standards and principles to help suppliers develop policies and processes to meet the company’s recently updated minimum requirements for suppliers.

Adhering to these requirements is a prerequisite to partnering with BHP and this will be underpinned by supplier due diligence processes.

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