Why is this important?
The conduct and performance of our suppliers can have a significant impact on our sustainability as a business, but also on our reputation within the communities in which we operate.
We’re committed to making sure the practices of all the businesses within our Group are fair, responsible and sensitive to the needs of our stakeholders.
What do we do?
We’re still one of the largest Fair Trade endorsed workplaces globally – which covers the tea, coffee, sugar and cocoa used in our offices and branches in Australia and New Zealand. This is a position we’ve held since 2009.
We believe in the fair treatment of our supply chain partners throughout the entire procurement process.
This ranges from robust governance and supplier selection processes, to negotiating contracts that we believe are fair and reasonable. Also, ensuring we recompense suppliers appropriately and within contractual terms and conditions.
Our Group-wide supplier sustainability performance targets, measured against a baseline of our 2015 performance, are as follows:
Measure
|
2015 Baseline
|
Target
|
Target Date
|
90% of material/strategic suppliers compliant with GSSPs
|
80%
|
90%
|
2020
|
100% of new/re-contracted Group suppliers in sensitive sectors assessed for ESG risks each year
|
NA
|
100%
|
2020
|
We publicly communicate our performance in sustainable supply chain management annually through our Sustainability Report.
Our supplier sustainability program and ESG risk mitigation
Our Group Supplier Sustainability Program identifies and seeks to mitigate sustainability risks within our supply chain. A key component of the Program is our Group’s Supplier Sustainability Principles (PDF, 8.1MB) (GSSPs), which specify the sustainability requirements for suppliers providing goods and services to our businesses.
The Program involves the following key objectives:
- Implement Supplier Sustainability Principles
- Monitor compliance with Supplier Sustainability Principles
- Initiate sustainability improvements with suppliers
- Support and recognition of supplier performance
- Report on performance.
More detail about the program can be found in the Frequently Asked Questions (PDF, 329KB) and the Purchase Order Terms and Conditions (PDF, 91KB).
Our procurement process clearly informs potential suppliers of our expectations, policies and requirements, and outlines our preference to do business with suppliers that have sustainable business practices.
All supply contracts put out to tender are evaluated against a pre-determined evaluation matrix. This includes any relevant Corporate Responsibility and sustainability criteria, so we can meet our commitments to OECD Guidelines for Multinational Enterprises and the Universal Declaration of Human Rights.
