GLOBAL

Responsible Sourcing Policy

At Lightsource bp, we are deeply committed to embedding sustainability throughout our operations, including in the way we engage with our supply chain partners. Sustainable sourcing is a critical element of our overall sustainability strategy, ensuring that our purchasing decisions contribute positively to the environment, society and the economy. As a leader in the renewable energy sector, we recognise the importance of fostering a transparent, ethical and sustainable supply chain that supports the energy transition, protects biodiversity and upholds human rights.

Purpose

The purpose of this policy is to outline Lightsource bp’s approach to sustainable sourcing, guiding our suppliers and stakeholders in aligning with our commitment to sustainability. This policy serves as a framework for integrating environmental, social and governance (ESG) considerations into our sourcing processes, ensuring that our supply chain not only meets the highest standards of quality but also contributes to a more sustainable and equitable world.

Definitions

Sustainability: The practice of meeting the needs of the present without compromising the ability of future generations to meet their own needs. Reference: Brundtland Report, 1987 (World Commission on Environment and Development).

Sustainable Sourcing: Sustainable sourcing is the process of integrating sustainability considerations into the procurement of goods and services, ensuring that procurement decisions account for social, environmental and economic impacts throughout the supply chain. Reference: ISO 20400: Sustainable Procurement Guidelines.

Supply Chain: A supply chain is a system of organisations, people, activities, information and resources involved in supplying a product or service to a consumer. It includes all stages from raw material extraction to the delivery of the final product to the end customer. Reference: Council of Supply Chain Management Professionals (CSCMP) and APICS Supply Chain Council.

Human Rights: Human rights are the basic rights and freedoms to which all humans are entitled, including the right to fair wages, safe and healthy working conditions, and freedom from exploitation. Human rights also cover the promotion of diversity and inclusion, ensuring equal opportunities for all individuals, regardless of race, gender or background. Reference: United Nations Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights and the ILO Core Labour Standards.

Risk Management: Risk management is a coordinated set of activities and methods used to direct an organisation and to control the many risks that can affect its ability to achieve objectives, particularly those related to environmental, social and governance (ESG) issues. Reference: ISO 31000: Risk Management Guidelines.

red poppies growing beneath solar panels

How we’re going to do it

At Lightsource bp, our sustainable sourcing strategy is designed to ensure that we collaborate with counterparties who share our values and commitment to sustainability. We strive to promote best practices across our supply chain while implementing a risk-based approach to continuous improvement. Below are the guiding principles and key areas of focus for our sustainable sourcing efforts:
Aerial shot of a solar farm in the Welsh countryside

Environmental Stewardship

  1. Prioritising Environmental Responsibility: We are committed to prioritising partnerships with counterparties who actively work to reduce their environmental impact. Additionally, we will actively collaborate with potential new counterparties to help them achieve the high environmental standards we require, ensuring continuous improvement and alignment with our sustainability goals.
  2. Products and Services: Where commercially practicable, we seek to procure products and services with a lower environmental impact, prioritising energy-efficient equipment, sustainable materials and those with recognised eco-labels and certifications.
  3. Lifecycle Assessments: We consider the full lifecycle impacts of products and services, from raw material sourcing and resource efficiency in design to end-of-life management, with a focus on reuse, recycling and responsible disposal. This approach enables us to make informed, sustainable choices while supporting our suppliers in the use of recycled materials and promoting circular economy practices.

Ethical Labour and Human Rights

  1. Fair Labour Practices: We are committed to preventing forced labour, child labour and any form of exploitation in our supply chain. We aim to require suppliers to commit to respecting the ILO Core Labour Standards and all applicable labour and human rights laws and regulations, including ensuring all workers are paid at least the legal minimum wage.
  2. Prohibition of Human Rights Violations: We incorporate contractual obligations that prohibit all forms of human rights violations, ensuring alignment with international standards and best practices.
  3. Diversity and Inclusion: Lightsource bp promotes diversity and inclusion, both within our organisation and across our supply chain. We actively seek to work with suppliers who support equal opportunities and foster inclusive workplaces.
A construction worker in full PPE underneath a solar panel
A gloved hand holding a solar panel

Supplier Engagement and Continuous Improvement

  1. Supplier Engagement: We engage our suppliers in dialogue to communicate our sustainable sourcing expectations and foster long-term partnerships built on transparency and mutual benefit. We encourage suppliers to adopt and improve sustainable practices.
  2. Performance Evaluation: Lightsource bp evaluates the sustainability performance of its suppliers. High-performing suppliers will be recognised, while those with room for improvement will be offered guidance to help them align with our sustainability standards.
  3. Capacity Building: We are committed to building the sustainability capacity of our sourcing team and suppliers through ongoing training and knowledge sharing, ensuring that all stakeholders are equipped to drive meaningful change.
  4. Continuous Improvement: Our commitment to sustainability is an ongoing process. We will continually review and refine our sourcing practices, incorporating feedback from stakeholders and adapting to emerging sustainability challenges and opportunities.

Compliance and Accountability

  1. Legal and Ethical Compliance: We ensure that our sourcing activities comply with all relevant laws and regulations, including those related to environmental protection, labour rights and human rights.
  2. Transparent Reporting: Lightsource bp is dedicated to transparency in our sustainability efforts. We will report on our sustainable sourcing practices and progress annually as part of our broader sustainability reporting framework.
  3. Grievance Mechanisms: We will mandate that our suppliers establish accessible and effective grievance mechanisms for workers and affected communities.
  4. Proactive Remediation: Lightsource bp will collaborate on remediation efforts and implement systemic changes to address recurring issues.
  5. Risk Management: We will continually assess, manage and mitigate material risks related to environmental impact, human rights violations and social responsibility within our supply chain.
Women at office desk, smiling

Through this Responsible Sourcing Policy, Lightsource bp aims to lead by example in the renewable energy industry, fostering a supply chain that is resilient, responsible and aligned with our vision for a sustainable future. We will continue to work collaboratively with our suppliers and stakeholders to achieve our sustainability objectives.

This policy will be periodically reviewed to ensure its relevance and effectiveness as we work to achieve our long-term sustainability goals.

Other References