Procurement - Policy

Our procurement policy was produced working with Forum for the Future, it covers all procurement activities and processes ensuring that they are carried out in a consistent manner that is fair, open and transparent and in line with our published code of conduct. This facilitates fairness of treatment between suppliers and also ensures best practise is applied across the procurement process.

It is our policy to see continuous improvement in environmental and social performance of our supply chain. This translates differently for different contactors and suppliers, but is based on the following core principles:

• Best value (all procurement must be made on the basis of best value including environmental and social criteria and not simply the lowest price).

• Competition based.

• Legal and Regulatory compliance.

• Ethical trading and respect for people’s quality of life.

• Good environmental performance.

• Transparency and fair application.

NWL has adopted many of the good practices outlined in the British Water Guide to Sustainable Procurement. This includes the use of key performance indicators, risk management, incentives and whole life costing.

Our current procurement approach includes the extensive use of e-procurement tools and applications together with the use of the Achilles Utilities Vendor Database (UVDB) as a means of providing a single focus point for the collection of supplier prequalification information thereby reducing costs, time and administrative workload of both ourselves and suppliers.

This approach also allows suppliers to demonstrate their capabilities through a single process. This process places a high emphasis on Safety, Health, Environment and Quality (SHEQ) and it has provided us with an opportunity to assess in detail suppliers capabilities through a single gateway that includes the use of an independent verifier and an on site visit. We are represented on the System Steering Committees.

All NWL procurement activities will be carried out in accordance with good ethical business practices that create a culture of respect in the way that NWL performs its business and treats its suppliers. In return we expect our suppliers to be clearly adding value to our business. Examples of where and how we expect suppliers to add value may include helping us to:

• Adhere to waste hierarchy: eliminate, reduce, re-use, re-cycle, dispose.

• Introduce innovative partnerships (resulting in alternative chemicals/methods with less risk).

• Reduce energy and water use both in design and operation.

• Reduce carbon emissions.

• Minimise fuel used in transportation.

• Work with suppliers on packaging.

• We will work towards whole life costing for our major capital expenditure projects.