Purchasing policy

AGL's group purchasing policy is to only deal with suppliers who display good corporate citizenship, ethical behaviour, and whose goods are not produced involving the abuse or exploitation of anybody or which have a negative environmental impact.

AGL applies these standards consistently to all suppliers of goods and services ranging from low value petty cash items up to complex tendering and contracting processes.

AGL's Health Safety & Environment (HSE) policies indicate how HSE must be considered from the pre-purchasing stage through to the delivery stage of goods or services. Contracts with suppliers must specify AGL's HSE requirements up front. Suppliers are also required to identify and document potential HSE risks associated with goods or services being supplied. Part of AGL's selection and rejection process for suppliers is based on their processes, commitments and capacity to meet AGL's supply, HSE and value requirements. AGL willingly supports suppliers in the development of their internal systems and processes to match AGL's HSE and value requirements.

AGL's health, safety and environmental management system, Life Guard, has standards that refer to the purchase of services and goods. Each year the business units are audited against these criteria and actions are developed and monitored.

In some areas of the business where higher risk contractors are employed (eg. field operations), there are detailed processes for the tendering, selection, engagement and monitoring of the contractors.