Responsible Supply Chain
The supply chain is a key element of Leonardo business model. Suppliers are directly involved in creating value for the company and they contribute to company reputation. Leonardo acquires about 80% of goods and services from suppliers located in the main countries of operation: Italy, UK, USA and Poland.
Leonardo intends to build long-term relationships with its suppliers, based on principles of transparency, integrity and trust.
Any supplier can indicate well-founded or potential ethical issues, even in anonymous form and, anyway, with no fear of retaliation, through the Whistleblowing system.
HUMAN RIGHTS AND UK MODERN SLAVERY ACT
As stated in the Supplier Code of Coduct, Leonardo requires its suppliers to treat people with respect, promoting dignity, health, freedom and equality of workers. At Leonardo diversity and inclusiveness are encouraged. Discrimination against any political organisation or trade union, whether directly or indirectly is not accepted.
Leonardo expects its suppliers not to be involved in any way whatsoever in organisations trafficking in human beings, forced labour and exploitation of child labour.
In accordance with Section 54 of the Modern Slavery Act 2015 of the United Kingdom, Leonardo MW Ltd has issued a statement outlining the steps taken during the financial year ending 31 December 2016 to combat and prevent slavery and human trafficking from taking place within its own operations and supply chains.
SUPPLIER RELATIONSHIP MANAGEMENT
Procurement activities are managed through the Leonardo’s Single Register and the Procurement Portal. Through the IT platform, the suppliers can apply for self-promotion, perform the pre-qualification, which includes verification of ethical-legal and economic-financial requirements, including compliance with the principles of environmental and social responsibility, and be evaluated with respect to rendered performance. Subsequently, during the qualification phase, further controls are carried out in consideration of the relevant product category.
RISK MANAGEMENT IN THE SUPPLY CHAIN
The supply chain is subject to continuous analysis to identify and prevent risks that could jeopardize performance and resilience in the long-term.
Leonardo sets specific actions to ensure compliance with existing environmental and social rules and to prevent, from the design stages, problems and supply risks. Particular attention is paid to the traceability of minerals contained in the supplied parts (conflict minerals) and to hazardous substances identified by RoHS and REACH regulations.
The Code of Conduct for Leonardo's suppliers explicitly refers to respect for human rights, import/export rules and originality of supplies, which must not contain second-hand, counterfeit or copied parts.
In the main countries in which Leonardo operates it participates in programs and projects aimed at improving the quality of the local Aerospace, Defense and Security industry and of their ability to respond to market competition. Particular attention is paid to the inclusion of small and medium-sized enterprises (SMEs) operating in the various industrial districts. Suppliers are involved in issues ranging from effective use of resources and capabilities to advanced technology development up to exchange of knowledge and experience.