This sets the framework for relations with suppliers of products and services, including Alestis Aerospace's desire for its suppliers to apply the same principles that govern the company's actions and to be able to prove it. The objective is to maintain a stable and lasting relationship with suppliers and to achieve sustained value generation.

This policy incorporates social and environmental aspects. Specifically, with regard to human rights, it includes the fight against forced labor, the prohibition of harsh or inhumane treatment, the elimination of child labor, regularized employment and the practice of non-discrimination. With regard to occupational health and safety conditions, suppliers are required to provide a safe and healthy working environment by minimizing risks and taking appropriate preventive measures, as well as providing adequate protective equipment.

Suppliers and subcontractors must also comply with current environmental regulations on waste, emissions, discharges, handling and disposal of chemical products, etc.

Finally, diversity and gender equality issues are included in the ethics and compliance policy (section 3.3)⁵⁷.

This procedure establishes the qualifying criteria (respect for human rights and basic labor rights, among others), and aspects related to technical capacity, industrial capacity, and deliveries, as well as trade and quality criteria. It also ensures that all purchases are carried out on fair and equitable criteria.

Which defines the method to be followed for evaluating, approving, onboarding, and checking the quality of suppliers. This is applied to all suppliers of airworthy materials, raw materials, standard and auxiliary services, and those carrying out subcontracted operations that affect the quality of the product, and establishes the criteria to evaluate suppliers, which can be through documentation or through an in-person visit. The on-boarding consists of several stages, which include the preparation by the supplier of a Quality Plan, a Special Adaptation Plan based on the evaluation, or a Set-up Action Plan if deviations are identified.

In this case, the goal is to ensure that all suppliers’ deliveries meet all the requirements, and confirm that the suppliers themselves adhere to the company’s policy and objectives, their industrial process is robust enough, and orders comply with quality standards and are fulfilled in a timely manner. All this is framed by continuous improvement and development, following the expectations and strategies set by Alestis. We analyze the fulfillment of delivery times, quality, annual turnover, load and capacity, risks, and other issues of interest to Alestis.

All new contracts entered into by Alestis with suppliers have a “Responsibility and Sustainability” clause (included in Alestis’s Ethics & Compliance Policy). Suppliers also have to prove their commitment to firm compliance with applicable regulations on human rights, employment, conflicts of interest, code of ethics, compliance with environmental, health and safety regulations. Additionally, they have to agree to not use any of the materials defined as “conflict minerals” in the manufacture of the elements (with the incorporation of the concept of due diligence in their supply chain to ensure this).

This procedure aims at identifying the countries where purchasing or subcontracting is not permitted (countries with international sanctions), as well as at knowing what to do if any risks are indeed detected.

During 2022, the annual supplier survey was reviewed, including new aspects related to E&C and Cybersecurity. During the first half of 2023, the relevant analysis of the responses received will be carried out.

In a nutshell, Alestis Aerospace continues to implement the necessary mechanisms to ensure that suppliers comply with basic standards linked to ethics and respect for human rights, occupational health and safety, the environment and sustainability, respecting the legislation applicable in each case.

The Procurement and Supply Chain department annually prepares an Audit Plan for suppliers, which includes those with a high impact on the customer, those defined by business strategy, those with high risk, all those that exceed the previously established threshold of impact on the business, new suppliers and regular suppliers that have not been audited in three years.

In 2022, 14 audits  were carried out, both on site and online, depending on the case, due to availability and in the judgment of the technicians. The fact is that most audits require physical presence and this is the reason why the number of audits carried out in 2022 has been reduced: in 2021, 23 audits were carried out, 16 of them online, and in 2022, of the 14, 3 were online.