Sustainable Supply Chain Program

Our goal is to engage with our global supply chain in the development and delivery of our environmental, social and governance objectives to support global challenges such as combating climate change, enforcing fair human rights and good labor practices and increasing sustainability.

KBR adopted a best practice approach in sustainable procurement and supply chain processes by aligning our operations to the ISO20400: 2017 International best practice guidance for Sustainable Procurement. The seven core pillars of sustainable procurement are: organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement and development.

Governance

We are committed to practicing mindful business practices that uphold governance. The policies and procedures help prevent insider trading, bribery, discrimination, conflicts of interest, and ensure ethical conduct throughout our operations. By following these guidelines, we aim to create a positive environmental and social impact while delivering value to all stakeholders.

Overview of our Key Sustainable Supply Chain Policies and Procedures

The KBR Procurement and Supply Chain Management (SCM) Policy establishes the foundational principles that govern KBRs activities and delivers sustainable strategic sourcing function.

The Supplier Code of Conduct (SCOC) sets out the requirements which all suppliers are required to adopt and flow down to their supply chain, which also aligns to the United Nations Sustainable Development Goals (SDG’s).

The Sustainable Supply Chain Charter sets out a phased program of action designed to drive change and build awareness of sustainable procurement. It sets organizational roles and responsibilities, and its delivery is monitored and sponsored by an executive leader and board member.

Strategy

KBR's 10-year sustainable supply chain strategy adopts a phased approach focusing first on voluntary benchmarking of Tier 1 and 2 supply chain (JV’s and subsidiaries and affiliates), setting out requirements for alignment with ISO20400, development of awareness training, supplier benchmarking, audit and Sustainable Supplier Awards. Supplier benchmarking targets seek to engage the largest and most risk-based suppliers over the next 3-5 years.

Over time, benchmarking is planned to become mandatory for all suppliers with minimum scores established for key suppliers, operations and activities. The strategy also includes the development of sustainable supplier audits and assessments, aimed to evaluate sustainability performance and achievements. Assessments will focus on specific key risk criteria related to combating people trafficking, enforcing fair human and labor rights, and taking proactive climate action.

Sustainable Procurement Targets

KBR has adopted a holistic approach to sustainable procurement, from sourcing raw materials, through distribution and delivery in manufacturing, use, audit and disposal, our supply chain is vital to us. By annually benchmarking our suppliers we have data driven insights to further strengthen our sustainable procurement program and manage any risk. In addition, management of resources (waste, water, and natural substances) as well as protection of biodiversity, energy management and carbon reduction are key reporting requirements within KBR. Some of the key Sustainable Supply Chain program targets include;

Number of suppliers benchmarking sustainability.
Number of KBR staff trained in sustainable procurement practices.
Reduction of Scope 3 Goods and Services Carbon reduction in line with KBR Science based Targets.
Supplier engagement in KBR sustainable supply chain events/ communications.

Awards

The KBR Sustainable Supplier Awards aim to encourage and recognize KBR suppliers that have demonstrated alignment with sustainable procurement best practices, leadership in sustainable procurement practices within their industry and region, and where they actively engage their supply chain to embed sustainable practices. Participation in the KBR Sustainable Supply Chain Supplier Awards is open to all KBR suppliers via KBRSupplier.

To apply, KBR suppliers should log into KBRSupplier and access the Sustainable Supplier Awards – Case Study Entry Form submission link on the KBRS Sustainability tab.

Further information about KBR’s Sustainability, Supply Partner and Carbon agenda are communicated within the annual KBR Sustainability and Corporate Responsibility Report.