SUPPLIERS Supply chain risk management
We strive to ensure that Gold Fields’ supply chain and reputation are not negatively impacted by only procuring from suppliers that apply standards of good practice. Furthermore, we make every attempt to contribute to good governance, health and safety, environmental protection and the communities in which we operate, through using only sustainably responsible suppliers.
Gold Fields' Stakeholder Relationship and Engagement Policy Statement formalises our commitment to engaging all our stakeholders and taking a relationship approach.
Over and above Gold Fields’ risk and materiality process, each region applies a jurisdiction-specific sourcing policy which outlines detailed tender, contract award, performance adjudication and assessment requirements, which includes a weighted prioritisation assessment of commercial and non-commercial criteria.
Gold Fields has implemented a Third-Party Screening Solution, which screens all active parties recorded on internationally recognised and published screening databases for recorded transgressions as well as for adverse media exposure, against pre-defined criteria, including (but not limited to): regulatory compliance, workforce health and labour practices, discrimination, worker’s rights issues, workforce disputes, environmental performance, health and safety performance, and management and operational issues.
The screening outcome is used as input into an internal screening risk calculator, which among other defined governance and risk management criteria, calculates a risk rating and creates a profiled view of the third party. This forms an integral part of the vendor risk management process in each region with reference to engagement, contractual terms, appointments, as well as the continuation of existing relationships.
All contracts contain standard clauses dealing with Health and Safety, Environmental Management, compliance with governance and ethical business principles and practices (e.g. anti-bribery, human rights, etc.) and other regulatory requirements. Each monthly screening of all active and new suppliers, any adverse media exposure alerts highlighting where regulator/government action has been taken in relation to environmental issues, discrimination or workers’ rights issues in the workplace, are subsequently reviewed, assessed, confirmed and recorded.
From a contractual viewpoint, all our Third-Party agreements contain provisions, which require statutory compliance and adherence to the Gold Fields Values, Code of Conduct and applicable Internal Policy Statements.
In addition, all contracts contain standard clauses dealing with health and safety, environmental management, compliance with governance and ethical business principles and practices (e.g. anti-bribery, human rights, etc.) and other regulatory requirements.
Furthermore, Gold Fields’ contract approval process includes a contract risk assessment/mitigation checklist. For all site services, additional site-based compliance verification is completed in-line with mine-site policies and procedures, prior to engaging contractors for work (e.g. independent contractor audits).
Contractors, suppliers or stakeholder groups with the potential to significantly impact Gold Fields’ reputation, either through adverse economic, environmental or social impacts, are classified as "sustainability high-risk".
Building and cultivating healthy relations with contractors, suppliers and stakeholder groups (by way of engagement and dialogue) is crucial in terms of generating awareness of potential economic, social or environmental challenges facing the business.
High-risk economic, social or environmental impacts are generally sensitive, diverse, or unprecedented in nature. For example, loss of major natural habitat (e.g. irreversible damage), involuntary displacement or resettlement of ethnic groups/minorities and impacting heritage sites of cultural significance, would all be considered ‘sensitive’.
Gold Fields undertakes regular risk assessments of all active and potential suppliers using a Third-Party screening solution. If we detect unacceptable risk(s), we work with the supplier in question to agree and implement a set of corrective actions.
We may from time-to-time undertake site visits or facility inspections for the purpose of verifying a supplier’s conformance with Gold Fields’ Values, Supplier Code of Conduct, or contract-specific requirements. We may also engage a third-party to audit relevant facilities and documentation, in addition to interviewing the supplier’s workforce.
Gold Fields may elect to disengage from suppliers who are unwilling or unresponsive with respect to implementing corrective action plans.