At FUNO, we partner with our suppliers to create sustainable communities. Our value chain is key to our success and become part of our operating team; in many occasions, our subcontractors are FUNOs face towards tenants and guests; particularly those in fundamental operational roles such as security, cleaning and maintenance. They support the FUNO experience.
Our suppliers for operation services and our utilities suppliers are critical to our success and viability.
Around 85% of our suppliers are local; sourcing from local businesses, allows us to reduce emissions, increase our economic impact on local communities as well as to identify opportunities to improve our ethical behavior, human rights, environment and community relations.
In 2016 our distributed value to local suppliers exceeded 10 million pesos.
In general, we seek that our suppliers comply with the highest quality standards; that can provide services and products that benefit our tenants and users.
In an attempt to strengthen our anti-corruption efforts and commitment to avoid unethical behavior in our operations, in 2017 we incorporated anti-corruption clauses in all our contracts with suppliers and subcontractors. We also require them to sign our Code of ethics and a Supplier Code of Conduct, which is a requisite to engage in any activity with FUNO.
The Supplier Code of Conduct and our Code of Ethics, covers business ethics, anti-corruption practices, attitude towards anti-competitive behavior, environmental conservation, child labor prevention and labor standards, among others.
Supplier guidelines require compliance with:
At FUNO we have identified suppliers by:
Critical suppliers to our operations: are those who provide us with goods or services for which our operations rely significantly (electricity, water, cleaning and safety services); with them we have specific long-term contracts and partnerships. In order to be critical for us, there has to be very few or none substitution options available in the market or that they support us in more than 20% of our properties.
Non-critical suppliers to our operations: those who provide us with goods or services which have several competitors in the market (gardening, cleaning products, maintenance services, etc.) they have been catalogued as non-critical since there are plenty of substitution options and/or supply less than 20% of our properties.