Sustainable supply chain

Suppliers are strategic partners for us and the relationships we establish are based on ethics and fairness.
Our fundamental values commit us to show respect for human rights and employment rights, as well as environmental responsibility and upholding the quality of products, materials, standards and techniques.

For this reason, Leonardo asks suppliers for precise commitments and strict economic, financial, ethical-legal, social and environmental standards. We verify suppliers’ commitments during the pre-qualification phase and monitor the approach throughout the supply relationship. Furthermore, by means of our purchasing contracts or subcontracts’ approval, we ask our suppliers to ensure that their own subsuppliers observe the conditions set forth in Leonardo’s Code of Ethics, in the Anti-Corruption Code and in the Organizational, Management and Control Model, as well as the subsuppliers comply with laws and directives  regarding corruption and bribery.
Find out more in our Terms&Conditions


All phases of the selection process and the relationship with the supplier are managed through the Procurement web portal, which guarantees transparency and traceability of information.

 

In 2018 Leonardo performed around 4,500 pre-qualifications and completed around 4,600 qualifications of suppliers.
Leonardo blacklisted six suppliers as a result of violations of ethical and anti-corruption principles and revoked the pre-qualification of eight suppliers for ethical-legal reasons.
Concerning the final beneficiary due diligence, Leonardo launched in-depth verifications on over 63 suppliers due to the presence of trust companies in the control ownership structure. Among these, Leonardo revoked the pre-qualification of 19 suppliers who did not disclose their final beneficiaries. 

SUPPLIER CODE OF CONDUCT

What does Leonardo expect from its suppliers?

  • Promoting dignity, freedom and equality for all workers.
  • No relationships with organisations associated with human trafficking, child labour or forced labour.
  • Ensure that all of their workers receive at least the legally mandated minimum wages and benefits. Working conditions, working time and compensation must be fair, complying with the laws, standards and practices applicable in the countries where the supplier operates.
  • Guaranteeing the protection of workers’ health and safety.
  • Complying with anti-corruption laws and regulations, Leonardo’s Code of Ethics and Anti-Corruption Code.
  • Respecting trade compliance laws and regulations.
  • Ensuring the quality of supplies, without defects or second-hand, counterfeit or copied parts or parts containing minerals from conflict zones.
  • Respecting environmental regulations and actively protecting the environment.
  • Keeping all know-how and confidential company and personnel information private.
  • Reporting confirmed or potential ethical issues through the whistleblowing system
SUPPLIER BUSINESS INTEGRITY

We have launched a new advanced analysis tool to actively monitor the integrity and risk status of suppliers. This supports our aim of continuous improvement in supply chain management. The system will allow the timely identification of financial, reputational and operational risks that may occur with suppliers. It will enable us to identify behaviour that may represent possible damage to Leonardo and to take mitigating action. Finally, the tool will ensure we have available a single and increasingly complete and common source of information in the Supply Chain.

MODERN SLAVERY ACT

Leonardo in the United Kingdom, in compliance with the provisions of the Modern Slavery Act of 2015, issued the declaration which illustrates our commitment and actions taken to prevent and combat all forms of modern slavery and human trafficking both internally and within our supply chain.

CONFLICT MINERALS

Leonardo acknowledges and promotes, where applicable, the regulations covering ‘conflict minerals’. This particularly refers to provisions under the ‘Dodd-Frank Wall Street Reform and Consumer Protection Act (2010)’. ‘Conflict minerals’ include tin, tungsten, tantalum and gold.
Leonardo expects a commitment from suppliers to inform the Company that items directly or indirectly supplied do not contain minerals from Conflict Regions (particularly, but not limited to, the Democratic Republic of Congo).
Suppliers must also guarantee that their subcontractors uphold the same commitment not to use minerals coming from Conflict Regions.