State Atomic Energy Corporation Rosatom (ROSATOM) is a diversified holding company that combines assets in the energy, mechanical engineering, and construction sectors. Its strategy is to develop low-carbon generation, including wind power. The Rosatom State Corporation is a national leader in electricity production (about 20% of total output) and ranks first in the world in terms of the largest portfolio of orders for the construction of nuclear power plants: 33 power units are at various stages of implementation in 10 countries. Rosatom is the only company in the world that has competencies in the entire technological chain of the nuclear fuel cycle, from the extraction of natural uranium to the final stage of the life cycle of nuclear facilities. Its scope of activity also includes the production of innovative nuclear and non-nuclear products, scientific research, development of the Northern Sea Route and environmental projects, including the creation of eco-technoparks and a state system for the management of hazardous industrial waste.
In reponse to the market request in terms of confirmation of sustainability, representatives of the TENEX Group (Rosatom company) the Supplier Code of Conduct has been developed. This document is intended to be included in contracts and is defining as a standard of "sustainability" to be met by suppliers and contractors.
The Code regulates the suppliers' operation in three main aspects: envirnomental implact, soical impact and business ethics. Since 2020 the provision of complying with the Code is integrated into all contract documentation of TENEX.
Russia
Nuclear industry
E, G
Since 2019
-
Since 2008, the first requests for confirmation of the “sustainability” of fuel products suppliers were intitiated by the TENEX European customers. Since 2018, requirements for suppliers along the entire production chain to comply with sustainability parameters, including the 10 principles of the UN Global Compact, with varying degrees of stringency, have become a condition of commercial contracts for the supply of nuclear fuel. Individual customers, within the framework of these requirements, also request access to the industry’s production sites to conduct an audit of compliance with sustainable development.
Confirm the company's compliance with sustainable development requirements, improve the quality of business processes related to sustainable development, and increase the degree of trust from foreign customers.
Foreign clients;
Other sector organizations.
Relevant industry policies and practices, international supplier codes, tender and contract documentation were analyzed in the course of the document preparation. As a result, in 2019, the Supplier Code of TENEX was issued (approved by Order of TENEX dated September 16, 2019 No. 006/329-P). In accordance with the rapidly changing global agenda and the most current international requirements in the field of sustainable development, the Supplier Code has been updated in 2021. The updated version underwent public consultations with representatives of stakehold groups, including foreign customers. The partners positively noted the content of the document and its compliance with key international requirements.
The updated version of the Supplier Code takes into account the proposals of partners, in particular:
The provisions on a systematic approach to sustainable development and interaction with stakeholders have been expanded;
Additional focus was placed on respect for human rights and interaction with local communities, preserving biodiversity in the areas of presence and reducing the carbon footprint.
The next updated version of the Code is expected to be approved in 2023.
The Code compliance monitoring is carried out with a number of tools, including regular monitoring of media, annual questionnaires (self-assessment) of suppliers and audit of sustainability (at least once every 3 years).
Positive effects of developing the Supplier Code:
Simplification of the procedure for confirming compliance with sustainable development requirements by presenting to the customer the Code and the results of regular monitoring (questionnaires, audits) of compliance of the supply chain with the requirements of the Code;
Increasing trust on the side of foreign clients and reducing the number and scope of “second party” audits (as a result, reducing transaction costs and labor costs for preparing and conducting such audits);
Business processes formalization and improvement of the management procedures related to sustainable development, for example, by replication of good practices identified during audits;
Openness and transparency of operations ensured by constant information exchange with the supplier;
Strengthening the role of sustainable development in corporate culture through the educational component of sustainability audits;
In general, the Code ensures the high level of global competitivness of the industry products and support the Company's reputation of a reliable and sustainable supplier.
-
-
