Human rights issues for workers and contractors in the United Kingdom are assured by UK and European legislation. The rights of individuals and communities are taken into consideration through the planning procedures for transmission lines and power stations, which involve detailed environmental impact assessment and extensive consultation.

Human rights in the supply chain is an issue that we consider in proportion to risk. The majority of our procurement takes place within the Euro Zone where workers’ human rights are protected by law.

We select most of our suppliers through the Achilles procurement portal where significant suppliers are required to subscribe to the Verify Scheme and provide policy and performance information on corporate responsibility issues, including the assurances they demand from their suppliers in terms of human rights.

Fuel procurement is handled by a separate specialist team in Energy Wholesale who, as part of coal supply contracts with non-EU countries, review a number of factors such as management of local operations, social and welfare arrangements for local employees, living standards, health and education provisions and comparisons of local salaries against both industry and national average wages.

We are members of the Association of UK Coal Importers (CoalImp), which has produced a CSR Policy and Guidelines detailing CoalImp members’ expectations of suppliers in respect of a number of CSR related areas.

In addition, we have produced draft clauses for use by members in their coal supply contracts, which require the suppliers to give an undertaking that they will comply with the principles of the CSR policy. Breach of any of the clauses could result in termination of the contract. Inclusion of such clauses in ScottishPower contracts is under consideration by ScottishPower and IBERDROLA’s legal teams.

We have successfully included the policy, the supplier representation and termination events in a recent contract.

We are actively trying to engage more European players in adopting the principles and to work with CoalImp to build a critical mass behind the drive to establish the CSR policy in the wider coal industry.