Responsible procurement
The IOC implements a responsible procurement approach by which the sourcing of its products and services is carried out with environmental, social and ethical considerations in mind.
Through this approach, the IOC aims to advance the IOC’s environmental and social goals through its purchasing power, while preventing value chain-related risks.
The IOC’s approach primarily relies on the followings:
- Supplier’s acceptance of the IOC Supplier Code.
- Social and environmental performance criteria applicable to certain categories of goods and services associated with higher risks or impacts. These are complementary to the IOC Supplier Code and are communicated to our suppliers on a case-by-case basis.
- Supplier due diligence, where relevant, based on perceived risks.
The due diligence approach
The IOC implements a due diligence process of its supply chain based on the perceived levels of risks and impacts.
Risk and impact evaluation
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Procurement projects are screened according to a risk-based approach, with a focus on social and environmental risks/impacts, in order to determine the priority level for due diligence.
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The level of priority (low, medium or high) determines the depth and rigour of subsequent evaluation and monitoring activities.
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For high priority projects (from an environmental and social perspective), further evaluation of the supplier, its products and services is conducted, through, for example, questionnaires, third-party assessments, or third-party audits.
Monitoring activities
The level of monitoring varies according to the perceived risks and impacts.
In addition to one-on-one exchanges with suppliers, the IOC requests available third-party assessments from its suppliers and may commission its own third-party audits – when a higher level of risk is perceived – to assess suppliers’ compliance with the IOC Supplier Code.