Our suppliers and partners

Our Global Supplier Code of Conduct sets out the behaviours, practices and standards we expect to see demonstrated and complied with, all of which are based on our own Rolls-Royce Global Code of Conduct, policies and standards.

Compliance with our Global Supplier Code of Conduct is mandated through our General Conditions of Purchase. All suppliers are contractually committed to adhere to this Supplier Code, or an agreed alternative. In the event that a supplier wishes to adhere to their own Code of Conduct we will review and ensure alignment between our Supplier Code and the supplier’s proposed alternative.

We prioritise suppliers for compliance assessment and monitoring in accordance with their risk profile. We take into account the nature of the relationship between Rolls-Royce and the supplier, the supplier’s geographical location, and the goods or service they provide.

All our purchasing and supplier-facing employees are required to undertake training on the role and significance of our Global Supplier Code of Conduct.

We seek to foster both competitive and collaborative relationships throughout our global supply chain.

Supplier approvals are carried out in full accordance with the relevant regulatory authorities.

Our global sourcing process assesses potential new supplier’s ability to deliver to Rolls-Royce standards. This includes an assessment of the supplier’s manufacturing capability, financial stability, and ability to deliver on time and for the right price. We also review and consider potential new suppliers’ ability to adhere to our Global Supplier Code of Conduct, prior to entering contractual negotiations.

In addition, all new and existing suppliers, as well as customers, joint venture partners and other third-parties, are subject to screening assessments through the Dow Jones Risk and Compliance Platform on sanctions, watch-lists and adverse media reports.

We recognise that disruption to our internal or external supply chain is a principal risk. We invest significant time and resource in identifying and mitigating potential points of weakness in our external supply chain.

We require all strategic suppliers to share business continuity plans with us. This helps us to understand and mitigate potential business continuity risks associated with geographical location, facilities and people.

Rolls-Royce has taken a leading role in the establishment of the Aerospace Engine Supplier Quality Committee and International Aerospace Environmental Group, both aimed at agreeing sets of common industry-wide standards. This helps to remove variability and waste from supplier processes.

We work with our suppliers to address risks associated with material stewardship and sourcing.

We recognise the importance of paying suppliers on time for the goods and services they deliver. This is part of our commitment to supporting our suppliers and maintaining a resilient supply chain. We monitor on time payment metrics across the Group.

We are consistently striving to improve the sustainability of our procurement practices and to support our supply chain. Our Global Supplier Code of Conduct helps our suppliers to understand and manage their risks.

We also encourage strategic suppliers to seek certification to international environmental standard ISO14001 to help them to mitigate their environmental impacts and associated costs. Suppliers are also involved in our Revert programme of metal recycling.

We are working with our suppliers to help them to meeting their obligations under the REACH (Registration, Evaluation and Authorisation of Chemicals) regulations with a focus on the managed reduction and phase out of the use of targeted substances that are hazardous to health and dangerous to the environment. Through our active participation in the IAEG we are also helping to introduce new standards to facilitate efficient data sharing, focused on hazardous substances, across the aerospace supply chain.

We recognise the role we have to play in minimising the risk of armed conflict and human rights abuse related to the mining of Conflict Minerals. In response to the Dodd-Frank Act and emerging EU legislation we have established a global programme team and are developing a programme and policy based on the OECD’s framework for managing conflict minerals in the supply chain. Early work with our raw material supply chains, where we are close to smelters and refiners, has not identified any issues.

Our supplier finance programmes enables suppliers to benefit from Rolls-Royce’s superior credit rating and access funds at lower interest rates.

We also support SME’s through our Supplier Diversity Programme to help support them in becoming part of our supply base. More than 200 small and medium sized companies are registered with the programme.