Sidenor 2021 Sustainability Report. Non-financial information statement

101 At Sidenor, we have a continuous evaluation plan for suppliers of raw materials, ferroalloys and steel auxiliary materials. These materials are a major part of the value chain in steel production. The supplier approval procedure establishes the following assessment criteria:  Compliance with the specifications of the material supplied.  Number of action plans delivered to the supplier.  Timeliness: observance of delivery times.  Compliance with requested quantities.  Quality System certification according to ISO 9001.  Number of incidents requiring urgent action.  Information security. The supplier evaluation provides a rating and suppliers are then classified according to the criteria detailed in the following table: Level Overall score Assessment Purchasing policy A IQF>=80 Very good Able to supply, and preference will be given to this supplier in the award of orders when the conditions offered are similar to those of a supplier with lower score. B 80>IQF>=65 Good Able to supply. C IQF<65 Poor Not able to supply. This supplier should be blocked in the IT system, except if it is the only supplier on the market, in which case an improvement plan and an inspection plan should be prepared. In addition, alternative sources of supply should be sought. D No score In process Supplier in process of approval. Level C also entails the necessary corrective actions for supplier re-approval. 2. Approval of suppliers