Our standard procurement Terms and Conditions require our suppliers to comply with Xylem’s technical and commercial requirements, as well as all applicable legal regulations, human and labor rights, and with our Supplier Code of Conduct. In turn, we expect suppliers to hold their sub-tier suppliers to these same standards. Our Supplier Code of Conduct covers expectations of suppliers in the following areas:
- General contracting ethics
- Child labor
- Forced labor
- Hiring and employment practices
- Compensation and working hours
- Health and safety
- Conflict minerals
and chemical substances
- Improper payments
- Confidential information
- Supply chain transparency
- Compliance monitoring
- Supplier diversity
- Human rights
We want our suppliers to feel comfortable speaking up when they believe we are acting in a manner inconsistent with our values. To that end, we have introduced the Xylem Supplier Ombudsperson Program, through which suppliers can report concerns and issues about Xylem’s ethical and compliance behavior in its business dealings.
The program employs a third-party vendor, EthicsPoint, to provide a confidential avenue for raising ethics- and compliance-related concerns. EthicsPoint representatives route information to the appropriate leadership at Xylem. Suppliers can confidentially raise potential concerns via telephone or online.
We expect all suppliers to adhere to our global sustainability standards. As part of our procurement process, any new Xylem supplier is required to align with our business standards in terms of product quality, process capabilities and sustainable actions. We have started implementing an audit process that prioritizes suppliers located in countries where human and labor rights issues could be a concern, and those located in water-stressed areas. Following an in-depth initial audit with a new supplier, we conduct selected and targeted follow-up audits, as well as random audits.
Audit questionnaires focus on the following areas:
- Health and safety practices
- Human rights and labor rights
- Conflict minerals
- Business continuity planning
- Facility security