|Our Sustainability Priorities||What this means||UN SDG||Page*|
|Governance and Compliance||Conduct our business ethically and responsibly in full compliance with all laws and regulations||16||56|
|Operational Excellence and Effective Management||Optimise business processes through innovation and quality management||16||60|
|Anti-Bribery and Anti-Corruption||Uphold business integrity and stand against bribery and corruption in the maritime industry||16||62|
|Economic Performance and Benefits||Generate sustainable economic value for our stakeholders||8||64|
Our relationships with suppliers are a fundamental element of our business success. As we conduct our business with high standards, we also set high standards for our suppliers to meet. By influencing our suppliers to improve sustainability practices, together we can play our part in supporting the United Nations Sustainable Development Goals.
Tenderers compete in a transparent environment with clear selection processes based on objective criteria and equal opportunity.
New suppliers are screened using internal criteria such as quality, delivery, reliability and price, and requirements for specific certifications, including Quality Management System (ISO 9001) and Environmental Management System (ISO 14001). In addition, all suppliers need to meet our expectations on Environment, Social and Governance (“ESG”) standards, which are covered in our Supplier Code of Ethics and Business Conduct (“SCEBC”). Our SCEBC was also recently updated to mandate that our suppliers respect human rights as set out in the United Nations Universal Declaration of Human Rights and endorse the principles of the UN Global Compact and the OECD guidelines for multinational enterprises.
BW LPG aims to partner with local suppliers as much as possible, working with local suppliers in the ports and locations where our vessels call at.
BW LPG works with a third party to conduct an annual audit of our contracted suppliers to verify compliance with our SCEBC. This year, 22 suppliers accounting for 40% of our procurement spending were audited. The audit comprises a questionnaire and risk assessment.
If concerns are identified, we use the results to encourage improvement in our suppliers’ sustainability conduct. A timeline is set for improvement. If there is insufficient progress, it can lead to the termination of our relationship with the supplier.
A key initiative we committed to this year was to reduce plastic use in our supply chain, by replacing all plastic cutlery, plates, and cups with reusable alternatives.
We have updated our supplier terms and conditions to include a request for suppliers to minimise plastic use. We have also started an initiative to return pallet plastic shrink wrap to suppliers at specific ports. All plastic from BW LPG landed at ports are recorded and a report is provided on a quarterly basis.