We will strategically develop strong relationships with key suppliers to obtain maximum value in terms of quality, service, technology and total cost of ownership.
THE PURCHASING ORGANIZATION
The EnerSys® purchasing organization is comprised of two groups of individuals: strategic sourcing and local purchasing. The strategic sourcing group is responsible for supplier selection, contract negotiations and supplier performance monitoring. Members of this team have global responsibilities and oversight and as such, report into the VP of global strategic sourcing. The local purchasing groups are responsible for the day-to-day buying activities for their respective locations and report into their local plant management team. While these two groups do not share a common reporting structure, they work together as a cohesive team to ensure successfully, streamlined operations.
The EnerSys strategic sourcing department will strategically develop strong relationships with key suppliers; obtain maximum value in terms of quality, service, technology and total cost of ownership; improve inventory investment; and reduce lead times to assist all of our locations to meet or exceed their goals.
CODE OF ETHICS
Our values reflect the EnerSys culture and help to guide each of us in our day to-day actions with our suppliers. The EnerSys Code of Business Conduct and Ethics provides important guidance to conduct our interactions. The Code of Business Conduct and Ethics applies globally to all EnerSys suppliers, employees and business partners. It includes a commitment that all stakeholders should endeavor to deal honestly, ethically and fairly with the company’s suppliers, customers, competitors and employees. Suppliers should download our Code of Business Conduct and Ethics from the governance documents of our investor relations webpage and carefully review.
Code of Business Conduct & Ethics
Anti-slavery and human trafficking statement: EnerSys is committed to ensuring that all forms of modern slavery, including forced, compulsory labor and human trafficking, are excluded from our business and supply chain. We have implemented internal accountability standards and procedures, which include monitoring and auditing our suppliers for their compliance with all applicable laws and regulations. Please refer to our anti-slavery and human trafficking statement for further information.
anti-slavery & human trafficking statement
Conflict minerals: Section 1502 of the Dodd-Frank act requires U.S. publicly traded companies to assess their supply chain and report yearly to the SEC on products where tin, gold, tantalum or tungsten are necessary to the functionality or production of a product that they manufacture or contract to be manufactured. EnerSys publicly reports our findings regarding Conflict Minerals. Click here to view our official statement filed with the SEC.
Conflict Minerals Reports
Cobalt: Specifically concerning cobalt, while not a mineral covered by Dodd-Frank 1502 Conflict Mineral reporting requirements, EnerSys recognizes serious human rights and environmental concerns around cobalt mining – especially in the Democratic Republic of Congo (DRC), where nearly two-thirds of cobalt is currently mined.
For the energy storage solutions sold by EnerSys that contain lithium-ion batteries with cobalt anodes, the cells we receive are sourced from suppliers committed to adopting the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas(Third Edition).
Environment: Suppliers are required to operate in an environmentally responsible and efficient manner and strive to minimize adverse impacts to the environment. Suppliers are expected to conserve natural resources and promote activities that include the concepts of reuse and recycle. It is mandatory that suppliers comply with all laws, regulations, ordinances, rules, permits, licenses and approvals regarding the environment in their countries of operation. Suppliers must adhere to the same standards of EnerSys and should refer to our environmental policy and our climate change policy for a clear picture of our expectations, management, commitments and goals.
climate change policy
Workplace labor rights: Suppliers are obligated to maintain safe and inclusive workplaces that are based on recognized human rights. Suppliers must conform to the standard set forth in our workplace labor rights policy and accord their employees the rights and freedoms described in the Human Rights Universal Declaration, the International Labor Organization conventions, and the United Nations Global Compact and the Guiding Principles for Business and Human Rights.
workplace labor rights policy
Suppliers should act with reasonable diligence to ensure that any of their contractors, subcontractors, manufacturing facilities, labor providers, agents, agencies, associations, distributors, partner organizations, affiliated companies, or subsidiaries who are involved in business with EnerSys, also comply with the principals, policies, and compliance requirements expected of our suppliers.
At EnerSys, we strongly believe that our suppliers are the experts in their respective fields and therefore, are best qualified to identify areas for improvement. Our close working relationships with our suppliers are crucial to the long term success of our organization. When evaluating potential suppliers, we not only look at the quality of the products or service provided in terms of first pass yield and on-time delivery, we extend the evaluation to include competitive position, price, value analysis, technical competence and support, lead time and customer focus. The goal of each partnership is the development of a long-term, mutually beneficial and prosperous relationship.
It is our policy to provide minority and woman-owned business enterprises (MWBE) an equal opportunity to participate in all aspects our supplier contractual opportunities including, but not limited to: procurement opportunities (raw materials, services, MRO, etc.), construction projects, professional services and leasing activities. It is also our policy to prohibit discrimination against any person or business in pursuit of these opportunities on the basis of race, color, sex, religion, national origin, age, disability or veteran's status.
ESG AND HUMAN RIGHTS POLICY
Suppliers should read our Environmental, Social and Governance and Human Rights Policy for more information about our role as a global citizen, our core values, and how we work vigorously to maintain our integrity and ethical standards, sustainable practices, and protection of human rights throughout our company and our supply chain. Our suppliers are called to act in accordance with high standards of integrity and in compliance with all applicable EnerSys policies.
Environmental, Social and Governance and Human Rights Policy
Suppliers are expected to allow EnerSys, or a third party of its choosing, to conduct audits for compliance of this code, including but not limited to, audits of environmental compliance, health and safety, product safety, conflict minerals, workplace labor rights, and corporate social responsibility. These audits may be in the form of questionnaires, site evaluations, discussions, or use of third party databases. Failure to comply may result in discontinuance of current and/or the prevention of future business relationships between EnerSys and the supplier and its affiliates. These audits will be conducted on a regular basis or as deemed necessary to address either the risk profile or past performance of any particular supplier.