Influencing our supply chain.


Making sure our suppliers reach the standards that matter

“We use suppliers to bring in products and services that we have actively decided not to make or deliver ourselves. This does not mean that we are absolved of responsibility for how those services are delivered, made, or how negatively they may impact on society and the environment.

“We therefore actively collaborate with our suppliers to maintain best practice and will continue a programme of continuous improvement across all of our supply chain.”

Alex Wolny
Group Procurement Director

Our supply chain in numbers

(Download XLS:) Download Excel

 

2008

2009

2010

2011

2010
versus
2011

Spend with suppliers

£358m

£316m

£369m

£439m

+19%

Number of suppliers

2,443

2,284

2,102

2,077

-1%

Number of key suppliers

35

50

40

40

No Change

Percentage of suppliers operating in high risk countries
(as defined by FTSE4Good)

0%

2%

15%

16%

+18%

OUR APPROACH

Without our suppliers and their infrastructure, we couldn’t deliver the services we provide to our customers. We recognise that working in a collaborative way with our suppliers is the most effective way of operating.

Our approach is to apply a constantly improving set of standards, which we expect our suppliers, particularly those in higher risk countries, to work towards. In 2011, our Sustainable Procurement Policy and our Corporate Social Responsibility (CSR) standards were extended to our overseas subsidiaries.

The vast majority of our suppliers are based in the UK, in line with our focus on UK customers.

OUR FOCUS

We continue to have 40 Key Suppliers who we deem to have a high Environmental, Social and Governance (ESG) impact. We reviewed these criteria in 2011, and because of this, we anticipate our number of key suppliers will increase to around 120 in 2012.

Governance and Policy

All our suppliers must be compliant with our Sustainable Procurement Policy .

We’re committed to actively supporting them in achieving our CSR standards.

In 2011, our CSR standards for suppliers were extended to include anti-bribery and corruption. Our stipulations included that suppliers would not engage in any form of bribery or corruption, including giving, promising, offering, requesting, agreeing to receive or the accepting of bribes – monetary or otherwise.

(Download PDF:) See our Anti-Bribery and Corruption policy (PDF) 370 KB

In 2011, we recognised the need for more control and governance of our group operating companies. We extended our Sustainable Procurement Policy to include our overseas subsidiaries. This reflects the ongoing integration of our CSR standards for suppliers into our procurement processes.

BENCHMARKING OUR PERFORMANCE

Our procurement environmental management system represents our commitment to improving the way we manage our direct and indirect impacts. It’s externally certified to ISO 14001 with twice-yearly audits, and was recertified in 2011.

We continue to validate and benchmark our approach to supplier management against external organisations, including:

  • the Financial Services Purchasing Forum
  • the Business in the Community Corporate Responsibility Index
  • the Dow Jones Sustainability Index
  • Our suppliers, including Bureau Veritas and SGS

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