Environmental and Human Rights Supplier Standards | Supplier Engagement | Supplier Data Privacy | Diverse Suppliers

Updated: March 2023

We strive to address environmental, social and governance elements within and beyond our direct operations. Our supply chain plays a pivotal role in our external partnerships, bridging the internal expectations with our suppliers that help us exceed our commitment to our customers. We partner with suppliers who share our commitment toward sustainability and support our vision of a sustainable energy future. 

Within APS, supply chain sustainability enables us to manage risks, protect the environment, provide value for our customers, and support our communities.

Environmental and Human Rights Supplier Standards

We adhere to high ethical standards of corporate responsibility and are committed to doing business ethically. To that end, we provide our Supplier Code of Ethical Conduct to suppliers, vendors and others with whom we do business so that expectations for ethical business conduct are clear.

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We set clear expectations for the following topics:

  • Laws, Regulations and Contracts
  • Management Processes
  • Anti-corruption
  • No Unfair Business Practices
  • Gift and Business Courtesies
  • Conflicts of Interest
  • Export/Import Control
  • Counterfeit Parts
  • Financial Responsibility/Accurate Records
  • Environmental Management
  • Responsible Sourcing
  • Supplier Diversity
  • Fitness for Duty
  • Employee Health and Safety
  • Security
  • Human Rights and Fair Treatment
  • Human Trafficking and Child or Forced Labor
  • Conflict Minerals
  • Non-Discrimination
  • Subcontracting
  • Reporting Potential Misconduct

Learn more about our Supplier Code of Ethical Conduct.

Supplier Engagement

We recognize the criticality of our supply chain as we focus on a clean, sustainable future. Ongoing supplier engagement is a necessity to ensure a responsible and resilient supply chain. We engage our suppliers in ways such as industry alliances and supplier recognition.

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Supply Chain Challenges. Our suppliers have been tackling the unique challenge of assessing material availability risk and responding to shortages and increased demand for needed materials and supplies, including personal protective equipment. We continue to work with our suppliers to ensure that APS provides reliable power to customers.

SSCA Membership. As a co-founder of the Sustainable Supply Chain Alliance (SSCA or the Alliance), we participate in industry discussions with peer utilities and suppliers, sharing best sustainability practices. The focus of the Alliance is to improve environmental performance and advance sustainable business practices through collaboration. This helps us advance our sustainability efforts within our organization. 

Through the Alliance, we distribute an annual sustainability survey to our suppliers, which enables a baseline understanding of ESG (Environmental, Social and Governance) performance of our supply chain partners. We advance our sustainability priorities and projects by engaging in discussion with our suppliers based on the results of this annual survey.

Key Supplier Forum and Awards. We recognize exceptional supplier performance by hosting a Key Supplier Forum and Awards. Success stories are celebrated through our Supplier Excellence Awards nomination process, and awards are presented in six categories: Performance, Customer Service, Value-Added Relationship, Safety, Community / Diversity, and Environmental Sustainability. To qualify for these awards, suppliers must excel in each of these categories. We look forward to hosting the next Key Supplier Forum and Awards in 2023 .

Learn more about our key supplier award recipients.

Supply Chain Sustainability Council. The Supply Chain Sustainability Council was established in 2019, in partnership with Corporate Sustainability, to identify opportunities for driving efficiency within the company. This increased visibility on supply chain sustainability and collaboration enables solution development. For example, this collaboration led to process updates incorporating sustainability criteria within the procurement bid evaluation process. Through the cross-functional council, we evaluate internal initiatives with a sustainability lens ensuring alignment with organizational priorities.

CDP Supplier Engagement Rating. As part of the CDP climate change questionnaire, we are proud to be recognized by CDP as a Supplier Engagement Leader for the past four years. The CDP Supplier Engagement Leadership Rating is earned by those found to be effectively implementing best practices when engaging with suppliers to limit greenhouse gas emissions within the supply chain.  We continue to partner with our suppliers to support APS’s Clean Energy Commitment.

Supplier Data Privacy

All suppliers must adhere to cybersecurity and data protection and assurance policies and procedures, as well as follow industry best practices and applicable regulations. By evaluating our suppliers’ internal controls and monitoring reputation and financial standing, we further protect sensitive information.

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Our Data Protection and Assurance, and Supply Chain teams ensure the company is protected by requiring that contracts with new and existing partners account for cybersecurity risk. All suppliers and their associates are required to have effective security practices and controls in place, and we work with these partners to ensure our customers are protected from potential third-party data loss.

Diverse Suppliers

We regard supplier diversity as an integral and sustainable element of our business. APS supports the communities we serve through partnerships with local organizations.

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Our Supplier Diversity and Development (SDD) Program focuses on three main areas: community building, mentorship and networking, and supplier development. Our partners include local supplier development organizations, chambers of commerce and third-party certification agencies. Through our collaboration and support of these organizations, APS supports programming that expands the development and growth of our suppliers. Most of our diverse suppliers are based locally, which also reinforces our economic development efforts in Arizona. A diverse roster of suppliers strengthens our business and our community and provides an opportunity to gain innovative ideas from suppliers that reflect our customer base. We’ve taken a proactive approach to developing diverse suppliers for more than 30 years and our SDD Program helped to enable approximately $576 million in spending with diverse suppliers in 2022.

In 2022, SDD hosted 28 events and engaged over 600 suppliers in training and matchmaking in partnership with local chambers and agencies. The matchmaking events and training sessions taught suppliers how to do business with APS and connected them with APS employees who regularly utilize similar products and services.

Our Diverse Supplier Training (DST) Program provides local and diverse business owners with the knowledge and skill set needed to grow their businesses and work within the utility industry. The DST Program is a self-paced online program that meets the needs of businesses with flexibility in time and proximity. It also allows a limitless number of people to participate in the free program each year and allows APS to expand its program reach to suppliers throughout Arizona and New Mexico. The online format allows us to easily connect with our suppliers and helps small, local/diverse suppliers develop industry-specific skills and tools needed to be sustainable and succeed in the electric utility industry.

Learn more about APS Supplier Diversity Programs.

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