Chain Management
Chain Management is still in its infancy at Nuon. There is a growing awareness that our responsibility does not stop at the front door of our organisation.
Suppliers
Purchasing of fuels
Certification managementsystems
Suppliers
Nuon’s Corporate Purchasing Department is responsible for contracts with over 7,000 suppliers. In 2005 Nuon incorporated a minimum clause into its purchasing contracts. This requires suppliers to declare that they meet minimum criteria in the field of safety, working conditions, working hours, salaries, dangerous substances, health and the environment.
In signing the purchase contract, suppliers undertake to recognise the right to a trade union, not to discriminate and not to use child labour or involuntary labour. This clause is primarily intended for suppliers based in far-flung countries. Suppliers who act as intermediaries are also expected to negotiate these conditions with their suppliers. Targeted contract compliance checks are performed by means of audits at suppliers who are suspected of acting in violation of the conditions. This takes place by an independent agency in the country in question or by Nuon itself.
Nuon makes frequent use of the services of subcontractors whose work is sometimes performed in dangerous conditions, such as in the case of maintenance work on grid stations or power stations. Subcontractors are requested to work according to the safety regulations prescribed by Nuon.
Purchasing of fuels
In 2006 a debate arose over the origin of fuels, particularly that of palm oil, and the working conditions in coal mines. The clause used for suppliers is not applied to fuel contracts. Fuels are purchased and traded on a world market. A lot of intermediate trading takes place in this market.
Nuon buys coal in countries such as Australia, South Africa, Canada and Colombia. Alongside purchasing for our own power stations, Nuon is also active in coal trading. In the case of new suppliers we check the credit and reputation risks ourselves. We see the improvement of working conditions in coal mines as part of a wider debate about the origin of raw materials. We are in favour of the European energy companies adopting a joint approach to this issue.
In 2005 Nuon decided not to use palm oil as a biomass fuel. This decision was taken on social and, above all, on technical grounds.
Certification of Management Systems
Nuon attaches a great deal of value to uniform and reliable business processes. This enables coordination with other processes and promotes cooperation in the chains in which we are active.
Working in accordance with internationally recognised and applied standards that have been duly certified facilitates this and provides a foundation for improvements. The overview below indicates, by process and/or department, the standards for which a certificate has been obtained as well as the total number of available certificates per standard.
