Supplier development

Our approach

A robust and reliable local business sector contributes to our success. That’s why we are committed to developing local companies and creating a competitive industrial base in the communities where we operate.

We promote the purchase of local goods and services for our projects and operations. By purchasing locally and developing long-term relationships with suppliers, we support capacity building and the development of local businesses.

What we are doing

In 2009, we dealt with more than 5,000 suppliers ranging from large national companies to locally based businesses and spent about $4 billion on the purchase of goods and services (excluding crude oil and petroleum products). Our suppliers provided services that included engineering, construction, transportation, security and facilities maintenance as well as materials required to support daily operations and projects.

We have a particular focus on developing and contracting Aboriginal businesses in operating areas near or on traditional lands. In places where Aboriginal businesses cannot provide the services we require, we encourage our prime contractors to subcontract to Aboriginal companies that are qualified to perform the work. For example, in 2009, about 12.5 percent of our goods and services purchases in the Horn River Basin in northeastern British Columbia went to Aboriginal contract and subcontract companies.

We expect our suppliers to meet the same standards under which we operate. As part of the overall commitment to corporate citizenship, we carry out activities throughout the supply chain to help ensure that environment, health and safety standards are achieved. In addition to undergoing a financial evaluation, proposals from suppliers are assessed against requirements for technical and safety performance. In each case, preference is given to companies with a strong commitment and record for workplace safety.

All of our suppliers and contractors must adhere to our requirements regarding safety, health, security and the environment, as well as the principles of our Standards of Business Conduct, as required in the terms and conditions of our contracts. We periodically conduct audits and reviews of our suppliers and contractors to ensure adherence to our terms and conditions, as well as to provide capacity-building efforts, including technical audits of suppliers and assistance, supplier mentoring, and performance feedback.