Supply Chain

A large part of our sustainability efforts are based on integrating our environmental, social and corporate governance policies (ESG) into our supply chain. The objective of our model is to promote efficiency, quality, sustainability, transparency, the respect of human rights, non-discrimination and equal opportunities.

That is why our processes for selecting, negotiating with and hiring suppliers and contractors are objective and rigorous. We also follow up with continuous quality control evaluations. To guarantee process traceability, we work with socially responsible and collaborative organizations and partners that value creating long-term relationships.

Our Supply Chain

The supply chain type is distinct for each business, with Construction being the business with the highest volumes of orders, which are mostly destined for the projects being executed at the time.

Our supply chain is made up of suppliers (manufacturers and distributors) and subcontractors. It is characterized by a large number of suppliers, high degree of subcontractors, high percentage of local suppliers, wide range of supplier types and the need to adapt to the requirements of each local market.

Global Purchasing Policy

Our Global Purchasing Policy includes the fundamental commercial, environmental, social and good governance policies that define the relationship between the company and its suppliers. This policy applies to our subsidiaries and markets and is based on the Code of Business Ethics, Corporate Responsibility and Human Rights policies, and the Suppliers’ Due Diligence and Ethical Integrity Procedure.

ESG issues related with purchasing are dealt with in the Sustainability Committee, that is chaired by the Sustainability Director and is composed of representatives from the business areas and the corporate areas including Construction Procurement Director.

The Sustainability Committee is the link between the business areas and the corporation and Senior Management, reporting on progress and results, and proposing actions to the Management Committee, as well as transmitting the approval of proposals and results to the rest of the company.

Integral Supplier Management

All our suppliers and partners are selected based on criteria of transparency, integrity, independence and sustainability. Our objective is to provide excellent and efficient services.

Supplier management starts with classification. In this step we measure their criticality, in other words, their critical importance in terms of their purchasing volume or economic activity. We also ensure that the suppliers are aware and comply with our Supplier Code of Ethics, integrated into the Suppliers Ethical Integrity Due Diligence Procedure, before establishing contractual relations with the company. It sets out the basic principles that should govern their behavior in their business relationship with Ferrovial and covers the following issues:

• Human Rights and Labor (forced labor, child labor, working conditions, occupational health and safety, discrimination, harassment, freedom of association and collective bargaining).
• Environment (GHG emissions, energy consumption, pollution prevention, waste management, resource efficiency, biodiversity, no deforestation, or land conservation).
• Business Ethics (anticorruption, anti competitive practices and conflicts of interest).

In addition, model orders and contracts include clauses that address environmental, social and labor, health and safety, compliance with the Global Compact guidelines, along with ethics and anticorruption issues.

In the construction department, we have improved our processes to guarantee suppliers’ ethical integrity. Our Green Purchasing Catalog was created to encourage green purchases and provide information about suppliers with these types of products.

After the selection process, the supplier or subcontractor starts providing their services and we commit to evaluating them on a regular basis. Incidents are recorded and may cause the supplier to be excluded from future tenders.

Innovation and Technology

We have attained an agile, efficient and transparent supply chain due to innovation and the use of new technologies. At the same time, collaboration with suppliers adds value and contributes to improving our processes.

The company has an Innovative Products Catalog, which is available to all construction sites worldwide. It contains information about new items chosen by the Purchasing Department.

Sustainable Purchases

As explained above, sustainability in our supply chain mostly revolves around purchasing decisions. Therefore, ESG affairs are also considered in the analysis of suppliers. In this line, high-risk suppliers are classified as those that supply products with high-risk or belong to sectors identified as high-risk, and/or manufacture the products supplied in high-risk countries. The assessment and tracking of supplier performance also takes ESG criteria into account and helps us in our decision making.  

The Construction division uses a computer application for the evaluation and follow-up of suppliers on the basis of the appraisals carried out at each construction site or work center. The valuations make it possible to qualify suppliers on an ongoing basis, and the result can lead to a warning for the supplier, the implementation of an action plan for improvement, or even suspension from working with Ferrovial, depending on the severity of the case. Finally, the Ethics Channel is available to all stakeholders on Ferrovial’s website, guaranteeing transparency in relations and allowing the notification of any conduct that is not in line with the company’s standards.

Moreover, in the construction department, we continue to strengthen the Green Purchasing Catalog as a tool to promote and share the purchase of products that impact the environment positively.

ESG Training for suppliers

It’s important to give training for company’s buyers to understand the relevance of ESG issues in the purchasing process. In our case, our professionals receive training in this matter and considering our commitment with the need of our suppliers to receive technical support programs to build capacity and ESG performance, we have launched in 2024 a Sustainable Suppliers training programme in collaboration with Global Compact. This initiative has been developed by UN Global Compact Spain, the ICO Foundation and ICEX Spain Export and Investment.

The benefits for suppliers that participate in this initiative are the following:

• Discover current global trends around sustainability and business, including ESG benchmarks.
• Gain knowhow on content and tools that facilitate the onboarding of sustainability into the business strategy.
• Identify priority topics for the company in terms of sustainability by size, sector and geographical location.
• Know the main reference frameworks and international sustainability reporting regulations.
• Align corporate sustainability work with the strategies and key lines set by large enterprises and/or multinationals with a global presence and activity.