When we involve suppliers in our ‘Responsible Partner Programme’, it is important that they also feel that they benefit from it. Our cooperation with a Chinese supplier, Rongxin Power Engineering, is a case in point.
We source more than 95% of our products and services from Europe. Sometimes, however, it may generate value for the business to buy a product outside Europe – and sometimes the products we buy from European companies are manufactured elsewhere in the world. In 2015, we signed a contract with the Chinese company, Rongxin Power Engineering (RXPE), who will deliver a power electronics system for our wind power projects.
France Bourgouin, leading the Responsible Partner Programme in DONG Energy, explained: “It’s important for our business that our business partners are competitive and, at the same time, operate their businesses reliably and sustainably. Our programme for responsible business partners helps to ensure this.”
On the basis of a risk screening, we decided to carry out an assessment of the conditions at RXPE’s offices and factories in China. Here we identified a number of points, for example health, safety and the perception of corruption, which RXPE could improve. In cooperation with RXPE, we prepared an improvement plan for the company.
For Richard Cooke, Business Development Director at RXPE, the cooperation has had an impact on several levels:
“For us, the cooperation is a seal of approval, which opens up for companies with the same values as DONG Energy to also see us as a potential business partner. The improvement plan helps to reduce risks in our business and will help make RXPE a more attractive place to work.”