Supplier evaluation program
We evaluate new and existing suppliers using a diverse set of tools depending on the complexity or criticality of the transaction. One tool we use is STACE (Safety and Sustainability, Technical, Alignment, Cost, Execution), a scorecard that enables our people to evaluate supplier proposals and performance in a fair and consistent manner.
The pre-qualification supplier process includes financial and ESG factors and compliance with laws. Existing suppliers are evaluated and audited for their environmental, safety, and labor practices. Sustainability criteria included in the evaluation process are tailored to the specific location of the work, materials, and/or services provided. These can include environmental and safety metrics and performance, commitment to comply with all applicable labor regulations (such as child or forced labor, working hours, etc.), and other criteria.
We also have a process to evaluate a contractor’s potential environmental impacts, including contractors that transport and supply oil, fuel, ammonia, coal, or byproducts to our site. In addition, all contractors and suppliers working on-site or on behalf of AES should adhere to our safety and environmental standards.