Eaton recognizes the significance of the supply chain in our own sustainability performance, and we are actively engaged in working with our suppliers to manage emissions and improve safety and efficiency.
We select our suppliers based on many factors, including price, quality, adherence to Eaton’s supplier excellence guide and ethics policy, corporate citizenship, global laws, sustainability, innovation, and other local, regional and global factors. The process is managed by Eaton’s Senior VP, Supply Chain, with oversight by the Board of Directors’ Governance committee.
Eaton expects all suppliers to adhere to principles of:
• Offering a safe work environment for employees
• Pollution Prevention and protection of the environment
• Committing to continuous improvement in Environment, Health & Safety (EHS) performance.
We require that suppliers implement Management Systems that identify, document and address operational risks to the environment and employee health and safety. These EHS Management Systems include identification of key EHS risks and impacts, development of operational controls to address the risks and minimize the impacts and preparation of response plans to address emergencies. Eaton also requires suppliers to meet worldwide operating standards, including emissions standards and other environmental regulations.
Eaton engages with suppliers in many ways:
Carbon Disclosure Project (CDP)
Eaton has joined the CDP supply chain network as a data member. In 2012, we invited our leading suppliers to respond to a Supplier Information Request. These suppliers represent about 15 percent of Eaton’s 2011 total spending. The company will use the data to help determine carbon impact of our suppliers, and work together to develop strategies to reduce our impact on climate change. CDP is an independent, not-for-profit organization holding the largest public database of primary corporate climate change information in the world.
Supply Chain Continuity Program (SCCP)
Eaton established the SCCP with the goal of developing a predictive supply chain. As part of this program, Eaton's supply chain group worked directly with suppliers to develop guidelines, processes, tools and technology to support supplier continuity planning in line with the financial, operational, environmental and safety requirements of our suppliers.
Annual Supply Chain Meeting
In 2011, Eaton hosted more than 250 strategic suppliers and 500 attendees during its annual Supply Chain Management (SCM) meeting. As part of the two-day event, two suppliers received Eaton’s highest award for excellence and 35 other suppliers were recognized for outstanding performance. The role of suppliers in helping Eaton achieve its sustainability goals was an important part of this year’s annual meeting, during which all attendees were introduced to Eaton’s involvement in the CDP supply chain program.
Conference Strengthens Supplier Relationships in Asia Pacific
In 2011, Eaton’s Asia Pacific supply chain management (SCM) team hosted a two-day conference for suppliers in Shanghai – the first such event to be held on a large scale in the region in the last three years. The aim of the conference was to strengthen Eaton’s relationships with suppliers, and develop joint projects that lead to better products, technologies, and sustainable performance.