Gamesa's strategy and policy in this area, as described in the 2011-2013 Business Plan, are oriented towards globalising procurements, without undermining product quality and ROI, by sourcing from global suppliers with a local presence, seeking new suppliers and encouraging existing suppliers to internationalise alongside Gamesa as it expands into other countries.

The commitment to localisation of procurements supports the development of capacity in areas where Gamesa has manufacturing plants; this contributes to technological and industrial development of local companies and generates wealth in those communities.

Localisation of the supply chain in India is proceeding on schedule: nacelles and towers in 2010, gearboxes and generators in 2011, and blades in 2012.

In other countries and Gamesa's target emerging markets, such as Brazil, the objective is to reach 60% of local content in 2012.

Indirect procurements (i.e. repair, upkeep and maintenance services, other general services, cleaning, telecommunications, etc.) amounted in 2010 to 357 million euro, with 250 suppliers accounting for 80% of the total. Gamesa's General Procurement Conditions explicitly include provisions on respect for human rights and labour practices, as well as a strong stance against fraud and corruption. Gamesa is now working to ensure that these conditions are fully implemented throughout its supply chain. Suppliers are required:

• not to employ minors as defined in ILO Convention 138, either directly or indirectly
• not to use forced or compulsory labour, not to impose punishments or use threats with their employees, and to avoid any kind of discrimination
• to prevent any fraudulent activities on the part of their representatives, i.e. a refusal to accept sums of money from Gamesa or its group companies

The company is working on specific procedures to provide guarantees in this area; they are expected to be operational in 2011.

Notable actions by Gamesa vis-à-vis its supply chain in 2010 include:

• Presence in industry forums and conferences: Danish Wind Energy Association annual meeting, Faro Internacional-Intergune 2010, etc.
• Meetings with suppliers: "Assembly: Gamesa and its suppliers creating a green future together" and "2010 Gamesa China Suppliers Day". More than 50 one-on-one work sessions
• Supplier portal, for exchange of product technical documentation, quality documentation, and documentation for managing deliveries
• Gamesa web page: contains General Procurement Conditions and Quality Manual for suppliers.