Responsibile 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.

 

RESPONSIBLE PROCUREMENT

Leonardo intends to build long-term relationships with its suppliers, based on principles of transparency, integrity and trust.

 

Suppliers must have a behavior that is consistent with the values and behaviors expressed in the Code of Ethics and in the Anti-Corruption Code, also recalled by the Supplier Code of Conduct.


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.

 

 Supplier Code of Conduct

 

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.

 

 Supplier section

 

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.

 

CAPACITY BUILDING

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.

 

ITALY

 

Leonardo leads Italy’s Aerospace, Defence and Security industry, which employs almost 45 thousand  people, contributing by approximately €1.8 billion to direct tax revenue and over €9 billion exported goods. Industry companies, with an average of 8.5 registered patents compared to the national average of 1.5 of the capital goods sector, can generate knowledge with a high added value. Indeed, the added value per worker is approximately €100,000, 67% more than the national average.

 

UNITED KINGDOM

 

Leonardo’s supply chain comprises approximately 1,300 SMEs in UK. Over 150 Leonardo’s suppliers, 34 of which directly sponsored, participate in the 21st Century Supply Chains program, a sector initiative that helps SMEs improving their performance in terms of resilience, in order to build a more competitive and sustainable supply chain.

 

POLAND

 

PZL-Świdnik, one of Lublin’s largest employers, set up the Lublin Cluster for Advanced Aerospace Technology whose aim is to increase the region’s contribution to the development of Poland’s aerospace sector, by forging collaborations with companies, local governments and universities.

 

UNITED STATES

 

42% of Leonardo DRS’s procurement value pertains to SMEs. By pursuing a specific policy that supports SMEs, Leonardo DRS focuses, in particular, on enterprises managed by women, veterans, disabled people and native Americans. It also carries out mentorship activities to search for opportunities and improve the competitiveness of SMEs.

 

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