Procurement policies and systems

We require the procurement of all goods to be undertaken with full compliance in regards to the applicable laws, tax regimes and regulations that govern the specific transaction, with full cognisance taken for our Anti-Bribery, Anti-Trust and Data Protection policies.

We have also improved our sustainable procurement policies and systems over the years. Since the launch of our Supply Chain Sustainability Code of Conduct in 2007, we published a revision in 2009 to include our standards for business ethics, which reflect our strong preference to work with suppliers who share our commitment towards honesty and integrity and who seek to integrate principles of sustainable development into all areas of their business. We further built our strength with our Code of Conduct to align the expectations that we have of our suppliers with our Sustainable Development Policy in 2012. This policy is available internally through our intranet and shared within our existing and potential suppliers, both locally and at our outports.

Supplier Code of Conduct

Our aim is to enhance the sustainability of our supply chain through encouraging and applying ongoing compliance with our Supply Chain Sustainability Code of Conduct, and with continued engagement and collaboration with our suppliers. We manage our sustainable development risks related to our supply chain by actively working with suppliers who share our standards towards issues related to the environment, health and safety, human rights, labour practices, business ethics and harmony within the community.

The Code of Conduct covers items including:

  • Legal and regulatory compliance
  • Environmental management
  • Intolerance for the use of forced and child labour
  • Appropriate compensation and working hours
  • Health and safety in the workplace
  • No discrimination against employees
  • Upholding human rights in the workplace
  • Having high ethical standards
  • Extending social responsibility to their subcontractors and service providers
  • Maintaining documentation and permitting our inspection

The Code of Conduct forms part of the supply tenders and contracts managed by our local offices. Suppliers, both new and existing, are expected to confirm their compliance with the standards described in our Code. Compliance with the Code of Conduct is included as a contractual requirement for all of our suppliers.

Timeline for Working with our Supply Chain
2006 Identified the need for a more coordinated approach to sustainability in our supply chain
2007 Developed and launched our Code of Conduct

First questionnaires sent to Hong Kong-based suppliers

2008 Launched online tool for suppliers to complete questionnaire regarding their compliance with our Code. New suppliers are contractually committed to meeting our Code of Conduct
2009 Revised Code of Conduct to include ethics
2010 First publication of the Supply Chain Sustainability Newsletter distributed to local and outport suppliers

Outport-based suppliers asked to complete questionnaire for the first time
2011 Development of a framework for supply chain compliance checking
2012 The Corporate Social Responsibility Code of Conduct renamed as the Supply Chain Sustainability Code of Conduct
2013 Project Horizon commenced to modernise and improve procurement processes and activities
Becoming a member of SEDEX

SEDEX sustainable supply chain platform

As a founding member of oneworld, the oneworld Procurement Best Practises Working Group – CSR was established in 2015 to understand how each member airline currently manages sustainability risk in their supply chains and share best practices.

In 2016, we focused on expanding our SEDEX usage across the oneworld alliance membership group and will be leveraging the collaborative platform to gather valuable actionable corporate responsibility data from our supply chain in the near future.

Selecting more sustainable plastics

Following our study on plastic use back in 2012, we partnered with Business for Social Responsibility (BSR)’s Centre for Sustainable Procurement (CSP) in 2014. We worked with our Inflight, Product and Procurement teams to understand better how to procure more sustainable containers, cutlery and materials for our inflight meal service products, specifically for those items of single use. Our aim for this exercise was to create the tools and procedures that will help steer our procurement decisions towards plastics with a much lower environmental impact for our immediate future.

Read more about Sustainable sourcing