2023 Strategic Outlook
To our valued Suppliers,
As OPG’s new Chief Supply Officer, it is my privilege to learn about and meet with the many suppliers who work to ensure we continue driving energy stability during these transformative times. Thank you for your commitment to providing clean, reliable energy to Ontario through OPG partnerships. I will draw on my extensive experience working and partnering with customers, and the skills and expertise of our Supply Chain team, to continue developing strong relationships with suppliers while supporting OPG’s key priorities.
OPG has ambitious goals to guide our promise to be a catalyst for efficient, economy-wide decarbonization, mobilizing our expertise, suppliers, and industry partners to create a cleaner environment and more prosperous, resilient communities. To ensure success in our vision of electrifying life in one generation, it is imperative we secure a robust supply chain with trusted partners.
In 2021, we shared our strategic goals and some changes and expectations related to procurement. Today, we are pleased to communicate our new commitments and what you, as our suppliers, can expect during these exciting times in the energy industry. We will provide regular updates to those suppliers directly impacted.
This year, for a small segment of our suppliers, we introduced a revised scorecard process reflective of OPG’s Environmental Social and Governance (ESG) priorities: Climate Change; Indigenous Engagement and Procurement; and Equity, Diversity and Inclusion. To achieve success, we must hold our suppliers to the same high standards by moving beyond traditional measures focused solely on operational excellence. We will continue to roll the process out to a new segment of suppliers in 2024. We will communicate directly with suppliers included in the revised process to ensure you have the necessary details required to meet OPG’s expectations in these areas.
Thank you for your commitment to providing clean, reliable energy to Ontario through OPG partnerships. I will draw on my extensive experience working and partnering with customers, and the skills and expertise of our Supply Chain team, to continue developing strong relationships with suppliers while supporting OPG’s key priorities.Zeina ElhamiChief Supply Officer
Climate Change
As part of our Climate Change Plan, OPG has communicated two important and bold goals:
- Net-zero carbon company by 2040
- A catalyst to help the markets where we operate achieve net-zero carbon economies by 2050
As a supplier, you play an important part in OPG achieving these ambitious and critical goals.
OPG now uses EcoVadis as the preferred platform to review and measure supplier ESG scorecard performance, to obtain Key Performance Indicator (KPI) data on GHG emissions. If you already have an EcoVadis scorecard, please share it with OPG. If you are a supplier that is not currently using EcoVadis, please be aware that you may be approached to do so in the near future.
As an OPG supplier, you play a very important role in our success to achieve the decarbonization needed in Ontario and Canada, and globally. With this goal as a top focus procurement, you will see changes in future procurement engagements, such as Requests for Proposals, Major Project awards, Scorecard Performance and Vendors of Records/Master Service Agreement contracts.
For suppliers already enrolled in EcoVadis, below is a brief outline of what OPG uses as evaluation criteria, qualification criteria, and possibly performance criteria (where applicable):
Mitigation
- Your goals and targets to reduce greenhouse gas (GHG) emissions created by your business and/or supply chain.
- Actions you are taking to reach your GHG emissions reduction goals and targets.
- Metrics and KPIs to measure the effectiveness of your GHG reduction activities, including internal and external reporting activities related to communicating progress and encouraging transparency.
Adaptation
- Your strategies to address risks related to climate change adaptation.
- Actions are you taking to adapt to climate change and strengthen resilience.
- Identification of your climate vulnerabilities that may impact on the ability to contractual obligations to OPG.
- Metrics and KPI’s to measure the effectiveness of your adaptation activities.
Indigenous engagement in procurement
OPG is committed to the Truth and Reconciliation Commission (TRC) Calls to Action. TRC Action #92 points to actions for corporations, calling on the leaders of companies to adopt the United Nations Declaration on the Rights of Indigenous People.
We are proud to say we have put real action behind our Reconciliation Action Plan (RAP). OPG’s RAP includes procurement goals for OPG’s Supply Chain across all business units including Nuclear, Renewable Generation and Corporate. You can learn more about our progress in this video:
Recently, we began working with supplier.io to utilize its Unitier platform as the preferred method for suppliers to report their Indigenous and Equity, Diversity and Inclusion (ED&I) equity-deserving awards and spend to OPG. Now we’re conducting a pilot project with plans to expand this important tool to all suppliers and will include this in our contract language. Our thanks to those suppliers who have been providing their feedback throughout the pilot to help fine-tune supplier.io - your input is valued.
OPG expects to see actions related to Indigenous engagement and procurement from our suppliers. The items listed below will be reflected in evaluation criteria, qualification criteria, and possibly performance criteria (where applicable):
- An executive sponsored RAP or a similar documented commitment that includes measurable goals and targets to support reconciliation.
- Information and metrics documenting your procurement of goods or services from Indigenous businesses, including the total spend or percentage of spend, supported by engagement agreements for long-term sustainability and commitment.
- For large projects and large commercial contracts with OPG, your company’s engagement plan with Indigenous companies related to procurement, employment or economic benefits for Indigenous communities related to the project.
- Partnerships or economic business relationships with Indigenous communities to execute a project or service/goods on which you are bidding.
Equity, diversity and inclusion
In 2021, OPG established its Equity, Diversity and Inclusion (ED&I) strategy outlining two key goals:
- Become one of Canada’s best diversity employers by 2023 – which we are proud to have achieved.
- Become a global leader in ED&I best practices by 2030.
We know that we perform better as an equitable, diverse and inclusive company. We also know that our suppliers can help drive our commitment to be an ED&I leader in the energy sector. Our suppliers are part of our business and a reflection on OPG’s values and goals.
OPG’s ED&I efforts are supported by our strategy to include under-represented suppliers and Tier 2 Suppliers in our supply chain. This includes businesses owned and operated by equity-deserving groups such as women, racialized people, Indigenous people, people with disabilities and members of the 2SLGBTQ+ community. Our Supplier Equity, Diversity & Inclusion Strategy is designed to grow OPG’s procurement spend within these communities. In addition, it is important that teams supporting OPG projects represent the diversity of the communities we serve.
Below is a brief outline of OPG’s expectations regarding ED&I, which will be reflected in evaluation criteria, supplier qualification criteria for all services, including Vendors of Record, major projects, consulting and base services.
- A company ED&I plan, or equivalent, applicable to your business and your practices.
- Your company ownership – 51 per cent (or greater) owned by a member of an equity-seeking group.
- A diverse team to support your product or service as provided to OPG, including at the senior leadership level.
- Use of supplier.io to track equity-deserving procurements.
To be successful at meeting Ontario’s growing electricity demand, our entire supply chain ecosystem requires strategic alignment and continued commitment to excellence. Together, we will drive change in the communities where we live and work and beyond.
Should you have any questions, please Contact Us.
Thank you for your continued commitment and support.
Zeina Elhami
Chief Supply Officer
Ontario Power Generation
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