OPG Strategic Outlook: Update on vendor expectations

Leading change takes leaders and entire industries to make a difference. As an OPG vendor, 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 in 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.

Below is a brief outline of what OPG will be looking for, from you, in the future, which will be reflected in evaluation criteria, vendor qualification criteria, and possibly performance criteria where applicable:

Mitigation

1. Your goals and targets to reduce greenhouse gas (GHG) emissions created by your business and/or supply chain
2. Actions you are taking to reach your GHG emissions reduction goals and targets
3. Metrics and KPI’s to measure the effectiveness of your GHG reduction activities, including internal and external reporting activities related to communicating progress and encouraging transparency

Adaptation

1. Your strategies to address risks related to climate change adaptation
2. Actions are you taking to adapt to climate change and strengthen resilience
3. Identification of your climate vulnerabilities that may impact on the ability to meet contractual obligations to OPG
4. Metrics and KPI’s to measure the effectiveness of your adaptation activities

#2 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.

Recently, OPG has created and released a Reconciliation Action Plan (RAP). This RAP includes procurement goals for OPG’s Supply Chain, across all business units in OPG, including Nuclear, Renewable Generation and Corporate.

OPG will be expecting to see actions related to Indigenous engagement and procurement from our vendors and the items listed below will be reflected in evaluation criteria, vendor qualification criteria, and possibly performance criteria where applicable.

1. An executive sponsored Reconciliation Action Plan or a similar documented commitment that includes measurable goals and targets to support reconciliation
2. Information and metrics documenting your procurement of goods or services from Indigenous businesses, including the total spend or % of spend, supported by engagement agreements for long term sustainability and commitment
3. 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
4. Partnerships or economic business relationships with Indigenous communities to execute a project or service/goods that you are bidding on

#3 Equity, Diversity and Inclusion

OPG has established two Equity, Diversity and Inclusion (ED&I) goals:

• Become one of Canada’s best diversity employers by 2023
• Become a global leader in ED&I best practices by 2030

OPG knows that we perform better as an equitable, diverse and inclusive company. We also know that our vendors can help drive OPG’s commitment to be an ED&I leader in the energy sector. Our vendors are part of our business and a reflection on OPG’s values and goals.

OPG’s ED&I efforts are supported by a Supply Chain strategy to include under-represented Vendors and Tier 2 Suppliers in our supply chain. This includes businesses owned and operated by historically marginalized groups such as women, racialized people, Indigenous people, people with disabilities and members of the 2SLGBTQ+ community (collectively, the “Equity-Seeking Groups”). Our Supplier Equity, Diversity & Inclusion Strategy is designed to grow OPG’s procurement spend within these communities. Further, it is important that teams supporting OPG projects be diverse and representatives of the communities we serve.

Below is a brief outline of OPG’s expectations regarding ED&I, which will be reflected in evaluation criteria, vendor qualification criteria for all services, including Vendors of Record, major projects, consulting and base services.

1. A company ED&I plan, or equivalent, applicable to your business and your procurement practices
2. Your company ownership - 51% (or greater) owned by a member of an Equity-Seeking Group
3. A diverse team to support your product or service as provided to OPG, including at the senior leadership level

I ask you to share this letter within your organization and with all appropriate subsidiaries to emphasize the importance of OPG’s goals and our expectations.

I look forward to further communication on the three areas outlined in this communication and welcome discussion with vendor leaders on these topics and expectations.

Karen Fritz
Chief Supply Officer