The scale and complexity of our supply chains result in a range of risks and opportunities that need to be managed actively and responsibly. To provide some idea of the scale of this challenge, we currently operate in over 70 countries and have around 50,000 suppliers. These include contractors, vendors, service providers and contingent labour, many of whom also have further suppliers.
Including trading operations, our annual procurement spend is approximately $59 billion (2018 $67 billion).
Given the substantial contribution they make to our activities, bp suppliers and contractors play an important part in implementing our strategy to be a strong, successful business and responsible corporate citizen. We engage with our suppliers and contractors to communicate our standards and encourage improved ethical and sustainability performance in our supply chains. Whenever possible, we use contracts to help ensure this is the case, for example by requiring contractors to meet local workforce requirements for nationals or to support local enterprise.
We aim to work with suppliers who strive for sustainability in their supply chains and innovation and excellence in the delivery of products or services, working in accordance with our code of conduct, human rights policy and other expectations of suppliers. These are set out in our supplier expectations document. Our new labour rights and modern slavery principles are also available to assist our businesses in checking suppliers’ performance on these aspects.
Our standard procurement contracts include a requirement for suppliers to respect internationally recognized human rights, and specifically exclude employing, engaging, or otherwise using forced labour, trafficked labour or exploitative child labour. Focusing our efforts on where we believe risks are higher, our labour rights due diligence process helps us to identify risks and potential adverse impacts on the rights of workers in our supply chain. We use this process to assess suppliers on a risk prioritized basis. We take a systematic approach to assessing the risk of modern slavery by building assessment into our management systems, processes and procedures.