GRI Compliance / Social

Forced or Compulsory Labour 2016

For Management Response click here.

For Reporting Boundaries and Methodologies click here.

REFStatoDisclosureOur Response

GRI 409-01

Full Disclosure

Operations and suppliers at significant risk for incidents of forced or compulsory labor

  1. Operations and suppliers considered to have significant risk for incidents of forced or compulsory labor either in terms of:
    1. type of operation (such as manufacturing plant) and supplier;
    2. countries or geographic areas with operations and suppliers considered at risk.
  2. Measures taken by the organization in the reporting period intended to contribute to the elimination of all forms of forced or compulsory labor.

We consider that, given the nature of our business, we are at low risk for incidents of forced or compulsory labour.

The due diligence processes adopted by our business units including supplier onboarding, supplier audits and supplier performance reports have not identified significant or potential risks.

At Babcock we uphold the strictest standards and we have work closely with our suppliers to ensure the same standards are applied throughout our supply chain. Babcock’s supplier code of conduct explicitly sets out requirements in this area. We have actively taken measures to assure that our suppliers understand Babcock’s expectations and they have adequate policy, controls and objective evidence to ensure there is no incidents of forced or compulsory labour within our supply chain. Our code of conduct is shared with all suppliers and all topics contained are also a key feature of our onboarding processes to ensure objective evidence of control at our suppliers is verified.

In late 2021 Babcock developed a Sustainable Procurement Policy that identifies key sustainability themes including requirements around forced or compulsory labour. This is underpinned by our newly developed Sustainable Procurement Guideline which provides detailed requirements and is supported by our 3 year Sustainable Procurement Strategy.

As part of this strategy in 2022 a full set of core process are being developed to control all aspects of the sustainable procurement management system which will promote continual improvement, monitoring of risks, action management and continued development of our supply chain.

The business is also investing in organisational resource within P&SC to provide a dedicated team to deliver the strategy.

Babcock have invested in an AI risk monitoring solution that will allow us to fully map our supply chain ecosystem, monitor activities and alert us when hidden risk is exposed in our sub-tier supply chain. This has been rolled out in Q1 2022.

We discuss our promotion of human rights and ethical conduct in our Annual Report on page 70 and our Modern Slavery Transparency Statement can be found on the homepage of our website.

Details of the due diligence we undertake on our suppliers and our expectation for them to subscribe to our Code of Conduct or have equivalent standards and procedures in their own business are given on page 71 of our Annual Report.