EDF Energy is committed to ethical business practice which includes paying our suppliers in accordance with contractually agreed terms. We monitor our payment performance as part of our normal business operations and take action to address the root cause of identified exceptions. In 2017, we made 87% of our payments on-time with our average payment period being 61 days. To support the working capital requirements of our supply chain, we also offer a free-to-join Supply Chain Financing facility enabling suppliers to draw down funds from approved invoices in exchange for a small financing fee.
CHARTERED INSTITUTE OF PROCUMENT AND SUPPLY (CIPS) SUSTAINABILITY INDEX
Ensuring that we support a sustainable and responsible supply chain is an important area of The Better Plan. To date, 107 suppliers representing 25% of our total expenditure have now published scores within the CIPS Sustainability Index. This index is an annual assessment of supplier performance across Social, Economic and Environmental dimensions. In addition to the CIPS index, a further 5 suppliers have subscribed to EcoVadis, a similar form of sustainability accreditation.
Through 2019, we will continue to engage our key suppliers on sustainability by continuing to promote subscription into the CIPS Sustainbility Index, or equivalent, accreditation schemes and actively managing improvement plans for any suppliers falling short of database average performance with additional oversight provided through our rolling programme of Supplier Compliance Reviews enacted with our key strategic suppliers.
UNITED NATIONS GLOBAL COMPACT
The Better Plan ambitions are aligned closely to both the United Nations Sustainable Development Goals and the ambitions of the United Nations Global Compact. It aims to support business in aligning their strategies and operations with the ten Principles on human rights, labour, environment and anti-corruption and in taking strategic actions to advance broader societal goals with an emphasis on collaboration and innovation.
DIVERSITY & INCLUSION
We continued our efforts to encourage and promote diversity across our supply chain during 2018, under the strategic direction of our Supply Chain Diversity and Inclusion Action Group (DIAG) who facilitated targeted, pro-active interventions leveraging the strong links we've built with MSD UK, We Connect, DRUK, Stonewall and others to promote EDF Energy as a customer of choice for diverse suppliers which was recognised through EDF Energy being awarded the Supplier Diversity Excellence Award at the European Diversity Awards in November 2018 and the MSDUK Supplier Excellence Award in September 2018 for our progress and initiatives in promoting Diveristy & Inclusion in our supply chains across EDF Energy.
Doing business in an ethical way is one of our most important values. Through The Better Plan, we are working to ensure the responsible operation of our supply chain including emulation of our commitment to zero tolerance of fraud, corruption or abuse of human rights. We recognise that Modern Slavery is a growing global concern and we are working to ensure that our own operations and those of our supply chain are appropriately evaluating the risk that it poses.
In June 2018, we published our Modern Slavery Statement. It outlines the processes we have in place to review and mitigate the possible risks of modern slavery in our operations and those of our suppliers. During 2019, we will further develop our approach and work with partners to consider additional steps to protect our workforce and supply chain.
EDF Energy is committed to fair employment practices. We continue to be an accredited Living Wage Employer, confirming we pay our own employees the Real Living Wage and ensure that the Real Living Wage is paid to the employees of our suppliers who work regularly on our sites.
The principle of paying a real living wage is adopted into the Hinkley Point C Social Covenant Agreement reached with the Trade Unions and is aligned with our overall project values. In addition to paying a living wage, we also remain sensitive to the dynamics of the local labour market and are careful to avoid adversely impacting the labour market for local employers.
 Regularly is defined as suppliers working 2 hours per week at an EDF Energy controlled location for more than 8 or more consecutive weeks in a year
BETTER SUPPLY CHAIN PLAN
In 2018, we continued to develop and deliver on The Better Supply Chain Plan, our plan for developing a supply chain that values long-term performance over short term opportunity as part of our overall framework for sustainable and responsible business.
During 2018 we progressed initiatives across each of our three enabling themes of Better Lives, Better Experience and Better Energy with some examples below:
- Provided Supply Chain support to the Management of Occupational Road Risk trial (a programme including Driver Risk Assessment, installation of telematics in company vehicles and a suite of training courses) resulting in drivers improving their safety by an average of 12% with eco-driving (fuel efficiency) scores increasing by 13% on average across the trial period. Following the success of the trial, the programme has been rolled out across all business areas in early 2019.
- Demonstrated our continued commitment to supplier diversity in the UK resulting in being awarded the Supplier Diversity Excellence Award at the European Diversity Awards in November 2018 and the MSDUK Supplier Excellence Award in September 2018 for our progress and initiatives in promoting Diveristy & Inclusion in our supply chains across EDF Energy.
- Teamed up with our catering providers to implement a 'No Excuse for Single Use' trial campaign to encourage employees to switch from single use coffee cups to resusable cups which proved to be a resounding success with wider roll out underway across EDF Energy sites in the UK.
- Teamed up with our contract partners for engineering consumables and personal protective equipment (PPE) to introduce a more sustainable way of transporting goods which reduces the amount of packaging waste produced and resources used.
- Continued engagement with local businesses to the Hinkley Point C project in Somerset (and starting to engage local businesses to Sizewell C in Kent)
- Providing Supply Chain support to the Managed Print Programme to reduce the both the financial cost and environmental impact associated with EDF Energy's print activities.