As a large purchaser of various products and services, ranging from fuel to onboard catering products, Air France-KLM aims to integrate sustainability in the supply chain by sourcing products and services that minimize our environmental footprint and have a positive social impact.
Working together with around 5,000 suppliers, a proactive role for procurement is essential. The most significant purchases are aircraft, fuel, airport and navigation fees, onboard products and Engineering & Maintenance.
Given the significant amounts spent, optimization, innovation and the integration of CSR in the supply chain are priorities.
Sustainable procurement strategy
- Code compliance: Buyers sign a code of ethics. Suppliers are asked to sign the Air France-KLM Sustainable Development Charter, which is based on the UN Global Compact principles, or to send an equivalent document to be approved by Air France-KLM.
- Supply chain risk assessment: Air France-KLM uses an online platform for assessing supplier CSR performance. Suppliers are scored on social, environmental, ethical and supply chain management criteria through a questionnaire.
- Managing non-commitment/non-compliancy: A risk-based approach was developed, focusing on suppliers in higher risk sectors and countries. Those identified as high risk take part in a CSR assessment. If a supplier does not obtain a minimum score, he is asked to provide a corrective action plan. The policy focuses on continuous improvement.
- CSR opportunities: Engaging suppliers on their CSR performance and challenges helps to identify CSR opportunities. In part, this is achieved by integrating environmental, social and ethical criteria in product/service specifications and contracts where relevant.