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The inclusion of domestic supplier in Cemig's supplier registration is conditional on proof that the material supplier or service provider does not employ children under 18-years old in night work, dangerous or unhealthy work, or under 16-years old, in any work except in lower-apprentice condition, defined in decree No. 5598 of 12/01/2005. In the cadastral renewal, which takes place annually, the supplier must submit this evidence. Moreover, in the Advertisements for Bids, this condition is again required.
During the execution of the service provision agreements is checked whether the working conditions established in the advertisement for bids and agreement are being met, such as no incidents of child labor, forced and degrading labor. The release of payment of services performed is conditional upon presentation of proof of payment of social security contributions, tax liabilities and salaries of employees.
Cemig also instituted an incentive mechanism for the adoption of good environmental, health and safety practices by the service providers suppliers, establishing reduction of any contractual penalties in case of supplier has presented, on a date prior to the event that caused the penalty, proof of items such as ISO 9001, ISO 14000, OHSAS 18001 and staff turnover rate lower than or equal to 5%, among others. The reduction in the fines can reach 50%, according to the environmental performance of the supplier.
From the 2011 edition of Cemig Suppliers Award, it is highlighted with the trophy of the best Cemig's supplier with social responsibility practices, particularly with voluntary actions for the benefit of employees and the local community.
In 2014, in order to make improvements and updates on its registration system, Cemig implemented new requirements related to social responsibility and environmental management for technical assessment of its suppliers.
Suppliers that provide materials will be required to report the minerals control chain from conflict areas, in order to comply with Law HR4173, "Reform Dodd-Frank Wall Street and Consumer Protection Act", section 1502 (b) minerals, conflict areas.
This section requires companies listed on the NY Stock Exchange to report the use of minerals from conflict areas in the DRC (Congo) and in neighboring countries where the revenue generated, directly or indirectly, can finance armed groups involved in the civil war, and result in serious problems of social and environmental nature.
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