Ferrovial - Annual Report 2010

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Spanish version

Supply Chain

Supply chain

Ferrovial’s relations with its suppliers and subcontractors are an essential part of its business activity. Both sides seek mutual benefit by joining forces and creativity, in order to offer clients higher quality services, while establishing long-term relationships wherever possible.

It encourages greater communication and collaboration with its suppliers and subcontractors. It has prepared an analysis for the development of an IT communication platform with suppliers.

Supply chain 201020092008Var 10-09
Number of suppliers 96,724  86,020 89,567 12%
EBITDA generated by purchases that meet quality and environmental criteria  (€)  397.6 366.7 291.05 8%
Suppliers evaluated  9,876 7,456 1,596 32%
Suppliers rejected 735  131 104 -461%
Supplier incidents  302 664 159 -34%

Profile of Ferrovial suppliers: low risk and local purchasing

In 2010 Ferrovial had relations with 96,724 suppliers, defined as suppliers, leasers or subcontractors. It is worth highlighting the fact that most Ferrovial suppliers belong to OECD countries, so they are considered low-risk in terms of Human Rights violations and compliance with labor and environmental regulations.

By geographical area, 33% of all suppliers are contracted in Spain, 64% in UK, 3.2% in USA, 47.5% in Poland and 9.6% in other countries. Local suppliers represent the vast majority in all the markets in which Ferrovial operates.

For example, in Spain 86% of suppliers are local and 14% are from abroad. Approximately 73% of all Ferrovial's suppliers are in the Construction industry and Ferrovial Agroman's main market is Spain

Certified wood

Ferrovial requires by contract that its suppliers and subcontractors disclose that the wood used is legally obtained, i.e., that it is extracted from operations with due environmental authorizations, and provide documentary information that proves the legal status of the product.

Use of recycled material

Ferrovial undertakes to increase as far as possible the use of recycled materials in its operations, or materials manufactured using recycled materials. The company will survey the main suppliers on the use and characteristics of these products. The aim is to have systematic information available on the use of these materials in its operations.

Commitment

  • Treat the supply chain as a key factor in the company’s sustainable development strategy.

Lines of action

  • Encourage suppliers and subcontractors to gradually adopt principles in line with the Corporate Responsibility policy.

2010 Milestones

  • Introduction of the Complaints Box on the Ferrovial website, to which any Internet user has access.
  • Incorporation of corporate responsibility clauses in all supplier-partner frame agreements signed in 2010 by Ferrovial Agroman.

2011 Goals

  • Start developing an IT platform for communication with suppliers.
  • Modify the current models of orders and contracts, with more emphasis on Corporate Responsibility aspects.
  • Conduct supplier surveys by activity on products made from recycled or recyclable materials, in order to make systematic information available throughout the company and boost the use of these products as far as possible.

© Copyright 2010. Ferrovial

In agreement with:
  • Dow Jones Sustainabiliy Indexes
  • LBG Spain
  • Ethibel
  • FTSE4Good
  • The Global Compact
  • Distinction of Equality
  • Triodos Bank
  • Carbon disclosure project

This is an electronic version of the 2010 Annual Report prepared by Ferrovial S.A. for its stakeholders, which aims to be complete and accurate. The contents of this version can be checked by referring to the print version. A copy of the print version in PDF format is available to download on this web page