We encourage the suppliers we work with to put sustainability at the heart of their operations. The supply chain for our global operations includes skilled labour, miscellaneous services and supply of raw, direct and indirect materials. For all our goods and services, we engage our suppliers through a commercial framework that is aligned with Our Charter values and our ethical practices.
We are focused on how we can support suppliers and service providers to adopt sustainable business standards in health, safety, human rights, anti-corruption and environmental protection that are in line with our own. Contractors working at our operated assets are required to comply with our Health, Safety and Environment (HSE) standards. We also look for opportunities to minimise adverse safety, health, human rights, environmental and climate impacts throughout our value chain.
We take a risk-based approach to identify potential suppliers for more in depth assessment of their compliance against our requirements. The approach is based on a combination of questionnaires, due diligence and third party data. We manage our relationships through relevant contractual arrangements, applicable regulatory frameworks, Our Charter, Our Code of Business Conduct and Our Requirements standards. The Our Requirements for Supply standard provides the framework with a view to ensuring our suppliers comply with our HSE and business conduct minimum requirements.
We assess supply categories according to commercial dependency and supplier risk. If required, we work together to develop a plan to ensure the supplier meets applicable Our Requirements standards throughout the relationship. We also support suppliers from host communities to help them meet our standards, build their capabilities and generate local employment.
In FY2019, the foundations of our Ethical Supply Chain and Transparency program were developed and tested through the completion of a pilot program. The full program was launched in May 2020 and now forms the primary preventative control to manage the risk of a human rights breach within BHP’s supply chain. The program applies to all suppliers of non-traded goods and services to BHP. This program is critical to the sustainable operation of our business, but also to our responsibility to work with our suppliers and contractors to manage risks that human rights abuses present through our value chain. We are committed to working with our suppliers to enhance their understanding of our Ethical Supply Chain and Transparency processes, which includes taking steps to encourage them to improve management of human rights risks (including modern slavery) among subcontractors and across their own supply chain.
We continue to strengthen our processes and seek to better understand the risks of modern slavery and human trafficking in our operations and supply chains, including assessing our direct suppliers against our Minimum requirements for suppliers, and using third-party audits for high-risk vendors where appropriate. We report our progress annually through our Modern Slavery Act Statement, which is prepared under the UK and Australian Modern Slavery legislation.