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There entire certain environmental and social issues inherent to the sourcing of required production materials. These include legal compliance, anti-corruption measures, human rights protections, fair labor practices, and the mitigation of adverse environmental impacts related to mining, processing, manufacturing, and transportation. Before our Energy Transition companies begin purchasing equipment, such as batteries or solar modules, we expect formal supply chain policies and procedures to be put in place in order to uphold sustainable sourcing standards. Successful implementation involves considering the origin country of products, engaging with counterparties, conducting audits to verify compliance, and ensuring traceability of materials.
Linea Energy conducts rigorous due diligence on its suppliers, leveraging its internal teams and occasionally third-party experts to assess risks. Initial screening includes an evaluation of compliance history and any human rights violations. Once a vendor is approved, robust procurement contracts are signed to ensure auditing rights.
As part the company's ongoing monitoring efforts, suppliers are required to develop supply chain maps for products to be delivered. These maps illustrate traceability for all steps of component production, from raw material sourcing to final assembly. Linea also engages independent auditors to perform in-person factory visits and audits to determine adherence to the company's procurement standards.
