Global scale, Local impact

AES is deeply rooted in local culture and customs. We invest in our communities in a way that makes the best sense for them. We learn, grow, expand, and share the experiences we have to bring innovation from one market to another, changing the future of energy, together.

Contractors & suppliers

Our suppliers play an important role in helping us achieve our sustainability goals. Promoting acceptable working conditions, environmentally responsible management and ethical behavior are all key parts of our commitment. To deliver on this commitment, we need to ensure our suppliers are aligned with our values and work with the highest standards.

We hold our suppliers and contractors to the same high ethical standards we have. The AES Ethics & Compliance Program takes a risk-based approach that categorizes suppliers based on the potential risk of the transaction involved. The risk profile of an engagement determines the required pre-engagement due diligence and any conditions of engagement, such as requirements for certifications, acknowledgments, training, and engagement structure. We strive for continuous improvement and support our suppliers if performance improvements are needed.

Procurement requirements

AES businesses are very diverse with their own unique portfolios, but we all adhere to the same procurement processes. All procurement activities are carried out in alignment with our values and operational standards and in compliance with local and international laws.

Our procurement guidelines define AES business practices and expectations worldwide. We promote a transparent and fair environment for potential suppliers to participate in our bidding processes. Together with our Ethics and Compliance Program, our safety and environmental guidelines, and our local teams, we strive to ensure our process includes sustainable practices that support our environment, our stakeholders, and the communities we serve.

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.

Prospective suppliers

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Current suppliers