Case Study: Ethical sourcing programme development

Anglo American

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Outcome

twentyfifty guided the development of an ethical sourcing programme for Anglo American, which has achieved strong acceptance within the business, led to demonstrable improvement in supplier practice and produced strong results in rating indices. The programme has also played a critical role in enabling Anglo America to increase its sourcing from China.

twentyfifty’s work included

  • Training and capacity building – starting with mentoring and support to the global project leader for ethical sourcing
  • Policy and code of conduct development – using internal engagement
  • Governance and management systems – including advice on designing and recruiting a team to implement the ethical sourcing approach, as well as support to develop work plans, performance indicators and governance frameworks.

About the project

Anglo American has over 80,000 suppliers and faces a complex set of procurement challenges including turnkey contractors with mine-type social impacts, local sourcing requirements, Black Economic Empowerment (BEE) targets in South Africa and increased sourcing from China.

The ethical sourcing approach included:

  • Integration of social and environmental criteria into strategic sourcing, category management and supplier selection
  • Training for buyers and coaching for category teams
  • Focused supplier audits with a continuous improvement orientation, and informing supplier development activities
  • Performance measures to drive desired buyer behaviour.

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