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Toronto Hydro 2014 CR Report_FINAL

SUPPLIER ASSESSMENT FOR LABOUR PRACTICES We aim to ensure that our suppliers share the same values and labour practices as Toronto Hydro, and require them to abide by all applicable laws. Management approach to supplier assessment for labour practices Corresponds with Toronto Hydro’s Material Aspect: Material Selection and Usage Our competitive bidding process for the selection and screening of vendors is an integral part of our Procurement Policy and central to our commitment to fair operating practices in our supply chain. We measure the effectiveness of our procurement processes against internationally recognized standards. Following a recent ISO 26000 gap analysis, we updated our bidding process to reflect best practices. During the request for proposal (RFP) process, we ask a series of rigorous questions related to human rights issues, environmental sustainability, rules concerning conflict of interest and non-collusion, health and safety compliance, and adherence to Toronto Hydro’s workplace policies and procedures. We also have a vendor management program to monitor the performance of selected suppliers. A scorecard is used to evaluate suppliers for: delivery, quality, price, service and sustainability. Sustainability metrics specifically rate vendors on ethics and governance, environmental performance, and business continuity. Low scores are examined and escalated when necessary. We also conduct a sustainability assessment for 10 of our largest suppliers. We follow up and monitor their performance through meetings held twice a year. Contractor prequalification and ongoing management Contractors who meet a risk threshold based on specific criteria are prequalified for their conformance with Toronto Hydro’s safety standards and legislated safety programs using an external service. Insurance requirements, workers’ compensation, compliance and safety performance statistics are also verified and monitored on an ongoing basis. Contractors are graded from A to F based on their safety status. Performance reports are made available to contractors to help them understand their strengths and opportunities for improvement. This prequalification service aids Toronto Hydro in communicating with our contractors and helps us ensure that contractors acknowledge that they have reviewed key documents, including our Occupational Health and Safety Policy, Environmental Policy, Workplace Violence and Harassment Policies, and our Code of Business Conduct. 36 TORONTO HYDRO 2014 CORPORATE RESPONSIBILITY REPORT


Toronto Hydro 2014 CR Report_FINAL
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