We are committed to conducting our business ethically and transparently. Therefore, it is important that our business partners comply with Brazilian and foreign legislation. We have a chain of over 5 thousand suppliers that render the most varied services, including raw materials, logistics, maintenance, administrative services, materials, energy as well as equipment and facilities investments. Throughout 2018 and 2019, we paid suppliers slightly over R$12 billion and R$14 billion, respectively.
Concentrated in the corporate level, the Supplies Department is responsible for hiring suppliers and serves all business units. Its procurement process is currently based on Strategic Sourcing, which complies with a predetermined method ensuring the best cost x quality return.
The due diligence process began in 2018 when 400 suppliers have been assessed
and this figure increased by 200% in 2019
Suppliers are hired based on internal standards as well as national and international procurement practices. The Compliance Program establishes the due diligence process for third parties and the use of mechanisms to detect possible conflicts of interest, tasks which are the responsibility of the Audit, Risk and Compliance Office. The due diligence process began in 2018 when 400 suppliers have been assessed and this figure increased by 200% in 2019, with the assessment of 1.200 suppliers. Contracts set forth clauses to ensure strict and full compliance with internal rules, including the Anti-Corruption Law.
During supplier ratification process, the Audit, Risk and Compliance Office makes a comprehensive evaluation based on their National Economic Activity Classification (CNAES in Portuguese). Both the corporate taxpayers’ ID (CNPJ) and the partner’s individual taxpayers’ ID (CPF) are checked to identify any possible engagement in corruption, fraud, complaint, environmental crime, slavery and/or child labor as well as trial history, domestic and international sanctions lists, such as: