Understanding our clients’ challenges and working together to identify the best solutions have always been at the heart of Lloyd’s Register (LR) and it’s group companies. By building strong relationships and personal connections, backed by our in-depth technical expertise and professionalism, we enable better safety, technical, operational and business performance in the maritime sector, serving clients across the globe.
Our innovation is grounded in listening to our clients and colleagues while our people are trusted and respected worldwide. That is why LR inspires confidence as a valued adviser, supporting clients with the challenges of today and tomorrow.
Our Procurement function is part of this invaluable support. It has been established to ensure that we are positioned to manage the commercial risks to the business and to ensure that we are on a firm commercial basis with our supplier base.
Want to be a supplier?
If you are interested in becoming a supplier for goods and/or services to LR, please register your interest via this link Zycus Supplier Network. The Procurement team will review your enquiry and get in touch to discuss a suitable project when it arises.
Significant rewards
LR recognises that the application of robust procurement practices can return significant and quantifiable financial, operational and strategic rewards, as well as reducing risk.
The Procurement team provides best practice procurement advice and support (in line with required governance and regulatory guidelines) to all areas of the wider business, with key purchasing decisions taken jointly between the Procurement team and the business area/stakeholders concerned.
LR’s overarching objective is to procure goods and services from a supply partner that demonstrates best overall value with minimal commercial risk. We endeavour to build partnerships with our key suppliers, developing relationships that are built on trust and mutual advantage. We also want our suppliers to share our values.
Procurement standards
LR’s Procurement Policy requires that the Procurement team are actively involved in all key contract negotiations for goods and services where a procurement activity represents a significant business, financial, legal, professional or reputational risk.
To support ongoing success, LR is committed to high standards of environmental, ethical and social responsibility in the delivery of all its services. We strive to be the best for our customers and look to make a positive contribution to society wherever we operate.
Lloyd’s Register has developed nine principles to extend these environmental, ethical and social responsibility standards to our suppliers.
These principles are anchored in internationally recognised standards, including but not limited to the UN Guiding Principles on Business and Human Rights, the Universal Declaration of Human Rights and the UN Global Compact. Suppliers must adhere to these principles at all times. In return, LR will work with suppliers to support any necessary improvements and encourage continual improvement.
Principle 1. Business is conducted lawfully and with integrity
We expect suppliers to conduct their business in full compliance with governing laws, rules and regulations. All suppliers must comply with our anti-bribery, anti-corruption and anti-fraud policy (https://www.lr.org/en/about-us/governance/compliance/) and all applicable anti-trust laws. Any conflict of interest in a supplier’s business dealings with LR must be declared. Any ownership or beneficial interest in a supplier’s business by a government official, representative of a political party or a Lloyd’s Register employee must be declared. All business and commercial dealings must be transparent and accurately recorded in the supplier’s books and records.
Principle 2. Fair, equitable and supportive employment
We expect suppliers to guarantee that the fundamental rights enshrined in the Universal Declaration of Human Rights and workers’ rights stated within the International Labour Organisation Conventions are upheld. Suppliers must abide by these principles, which ensure fair wages and decent working hours; the right to freely chosen labour, protection of young workers, and no use of child labour; and a culture of non-discrimination, equality of opportunity and humane treatment.
Principle 3. Workers’ health and safety is protected
We expect suppliers to provide a healthy and safe workplace to prevent accidents and injury arising out of, linked with, or occurring in the course of work or as a result of the supplier’s operations. We expect suppliers to manage health and safety systematically in accordance with international standards in proportion to the size, complexity and operational risks.
Principle 4. Environmental impacts are managed
Suppliers must operate in an environmentally responsible and efficient manner to minimise adverse impacts on the environment, where possible. We expect suppliers to systematically manage environmental risks to ensure that the necessary measures are taken to prevent pollution, conserve natural resources and take all reasonable measures to prevent any accidental spills/releases, in proportion to the supplier’s size and complexity.
Principle 5. Data Protection
Suppliers must show respect for personal data and individual rights in their dealings with others and within their own organisation by use of appropriate policies, procedures and contract terms. Suppliers must show that they are aware of the personal data they interact with and use, that it is held securely (appropriate to its sensitivity and volume) and is shared in a compliant way, including in the responses that may be necessary to resolve a breach.
Principle 6. Information Security
Suppliers must demonstrate that they have effective, industry-standard best practice security controls in place to protect all customer information that is stored and/or handled by their systems when providing services to us. Suppliers must have a dedicated (senior management endorsed and empowered) security team and/or individual whose responsibilities include information security risk and incident management. Suppliers must demonstrate they have routine security assessments conducted by specialist accredited independent organisations for their systems and processes. All high security risks identified must be communicated to us.
Principle 7. Legal/Insurances
Suppliers must have appropriate insurance policies to cover claims and liabilities arising from the goods and/or services being provided to us with appropriate limits that are compliant with national requirements. Ordinarily, suppliers should have the following policies in place: broad form public liability insurance, professional indemnity insurance and employer's liability insurance, or workers’ compensation insurance.
Principle 8. Fair Pricing and Payment Terms
Trading terms must be based on written contracts which specify mutually agreed competitive pricing and payment conditions. Suppliers must not manipulate the terms of any contracts for excessive or disproportionate benefit for the goods or services they are providing. Suppliers must demonstrate fair treatment of their supply chain.
Principle 9. Right to Audit
Lloyd’s Register reserves the right to carry out appropriate audits to obtain evidence of the supplier’s commitment to this Responsible Sourcing Procedure and expects full cooperation.
Compliance
LR requires its suppliers to comply with applicable laws and maintain accurate records, demonstrating compliance with such laws and this Responsible Sourcing Procedure.
Suppliers must advise LR of any suppliers’ processes that are inconsistent with this Responsible Sourcing Procedure.
Suppliers are responsible for prompt reporting of actual or suspected violations of this Responsible Sourcing Procedure or any breach of contractual terms agreed with LR. This includes violations by any employee or agent acting on behalf of the supplier. You may report the violation via e-mail using the following address: ethics@lr.org.
For further information please contact groupprocurement@lr.org
