Global Scan of Sustainable Purchasing Practices

Transcription

1 This summary f highlights frm Internatinal Scan f Sustainability Practices f Insurance and Nn Insurance Cmpanies is published nline curtesy f the BuySmart Netwrk. Thanks t Cr Strandberg and the Cperatrs fr making these highlights available. A cpy f the full reprt, is available n the Cperatrs website. Glbal Scan f Sustainable Purchasing Practices A Summary f Highlights frm: Internatinal Scan f Sustainability Practices f Insurance and Nn Insurance Cmpanies (September 2010) A reprt prepared by Cr Strandberg f Strandberg Cnsulting, with funding frm The Cperatrs Grup Ltd.

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3 Abut The C-peratrs is ne f the largest whlly Canadian-wned multi-line insurers, ffering aut, hme, life, farm, travel and business insurance as well as investments. They aspire t be a catalyst fr a sustainable sciety. The Fraser Basin Cuncil (FBC) is fcused n advancing sustainability thrughut the Fraser River Basin and beynd. The FBC s lng term visin fr sustainability is scial well-being supprted by a vibrant ecnmy and sustained by a healthy envirnment. The BuySmart Netwrk, a prgram f the FBC, advances sustainable purchasing thrugh peer t peer netwrking, training, and advisry serves. Cr Strandberg is Principal f Strandberg Cnsulting, which prvides sustainability strategy and advisry services t rganizatins interested in being sustainability leaders. She specializes in sustainability decisin-making, purchasing, gvernance, finance and human resurce management. 3

4 GLOBAL SCAN OF SUSTAINABLE PURCHASING PRACTICES By Cr Strandberg Strandberg Cnsulting Backgrund Sustainable purchasing is a key driver f sustainability in the ecnmy. It is thrugh the supply chain that buyers signal their cmmitment t fstering scial well being, ecnmic prsperity and a healthy envirnment, thereby incentivizing cntinuus imprvement in supplier sustainability perfrmance. With sustainable purchasing gals, plicies and tls buyers are als better able t manage the scial and envirnmental risks inherent in their supply chain and pursue innvatin and efficiency bjectives fr their rganizatin. The integratin f scial and envirnmental cnsideratins in the prcurement prcess is a relatively new phenmenn. Over the past few years as mre and mre rganizatins adpt a sustainability r crprate scial respnsibility (CSR) cmmitment, they begin t embed their sustainability values int their purchasing mdels as a key means by which they can walk their talk. (See a cpy f The C peratrs Sustainable Purchasing Prgram.) T better understand emergent sustainable purchasing appraches, The C peratrs cmmissined Strandberg Cnsulting t cnduct a glbal scan f 17 insurance and nn insurance cmpany practices in this area. This was part f a brader scan that assessed sustainability practices in twenty tpic areas, including gvernance and management systems, prducts and services, investment and asset management, and carbn management. (See a cpy f the full reprt, Internatinal Scan f Sustainability Practices f Insurance and Nn Insurance Cmpanies.) This briefing dcument prvides an verview f this research int glbal sustainable purchasing practices. Study Highlights The study cncluded that sustainable purchasing is a pririty activity f many cmpanies. Cmpanies are develping rbust prgrams that integrate sustainability factrs int the traditinal prcurement prcess, thrugh the use f sustainability criteria, terms and cnditins, cdes f cnduct, mnitring and cmpliance prgrams, and supplier educatin and engagement. In additin t screening factrs (screening in / ut n the basis f preferred sustainability criteria), many cmpanies are cllabrating with suppliers n cntinuus imprvement. The scan fund that sustainable purchasing effrts are fcused n tw cnsideratins: the degree t which the vendr manages its peratins sustainably, including excess packaging, prduct take back, and transprtatin emissins; and the sustainability features f the prducts and services t be surced. In rder t simplify and fcus the sustainable purchasing effrt, cmpanies priritize key prduct categries (such as ffice supplies) r key suppliers (e.g large vlume suppliers) fr mre in depth wrk. 4

5 Many f the cmpanies were invlved in peer based cllabratins within their industry and acrss sectrs t advance their sustainable purchasing practice. Methdlgy The scan surveyed the sustainability purchasing practices f 17 cmpanies as dcumented in their sustainability reprts (primarily fr the 2008 perating year), ccasinally supplemented by website infrmatin, t determine their apprach t the integratin f scial, envirnmental and ethical cnsideratins int their purchasing appraches. The fllwing cmpanies were included in the scan: Insurance/finance cmpanies Allianz American Internatinal Grup Aviva C perative Insurance Sciety Desjardins Insurance Australia Grup Manulife mecu Natinwide Insurance RBC Swiss Re TD Financial Vancity Credit Unin Nn insurance cmpanies BC Hydr Marks & Spencer Seventh Generatin Muntain Equipment C p Study Results The fllwing is the summary f the sustainable purchasing practices f these 17 cmpanies, excerpted frm the Internatinal Scan f Sustainability Practices f Insurance and Nn Insurance Cmpanies. While the bulk f the practices are thse fund in financial and insurance riented cmpanies, they can be generalizable t ther services cmpanies. In additin, the results belw were infrmed by the practices f an energy utility, tw retailers and a cnsumer gds cmpany, all f which are sustainability leaders in their industry. 5

6 Cmprehensive sustainable purchasing prgrams Sustainable Purchasing Summary All seventeen cmpanies have cmprehensive sustainable purchasing prgrams many f which include the fllwing cmpnents: Incrprate sustainability criteria int RFPs (Requests fr Prpsals) fr all suppliers Many suppliers required t cmplete a sustainability questinnaire (sme beynd a certain $ threshld / majr suppliers) Sustainability criteria are rated in the evaluatin prcess using a ranking and benchmarking r weighting (e.g. sustainability scre ut f 10%) system Sustainability terms and cnditins / clauses are included in cntracts (all new cntracts and thse underging renewal) Many suppliers required t sign a Supplier Cde f Cnduct (SCC) n envirnmental and scial standards Many develp prduct specific guidelines fr ht spt prducts Many have mnitring and cmpliance prgrams such as annual r regular independent audits t assess perfrmance against SCCs t identify areas needing imprvement Staff training n sustainable purchasing prgram is prvided Reprting n sustainable purchasing results and impacts is a regular feature Supplier engagement initiatives are typical: Leading purchasers hld sustainability wrkshps and frums fr suppliers n key issue areas such as GHG, water, and waste management, diversity and inclusin, and generic sustainability best practices Cmpanies are wrking with suppliers t develp key perfrmance indicatrs (KPIs) fr GHG emissins, waste and water Cmpanies establish supplier websites, checklists and ther tls t help suppliers build sustainability int their peratins Many engage in cllabratins and partnerships with thers, such as peer based netwrks (e.g. Chartered Institute f Purchasing and Supply Financial Services Purchasing Frum CSR sub cmmittee, which has 30 majr financial institutins participating, BuySmart Netwrk, Fair Labur Assciatin, etc.) Cmpanies establish sustainable purchasing criteria as a means by which t integrate their scial and envirnmental pririties, including: Fair trade Bidegradability Recycled cntent Recyclable Reduced packaging Frest Stewardship Cuncil (FSC) certified Prduct take back Lw Vlatile Organic Cmpunds (VOC) Ttally, elemental and prcessed chlrine free Sy based inks Dye free 6

7 Sustainable Purchasing Summary Lw impact shipping Envirnmental plicies / certified envirnmental management systems Life cycle analysis Energy efficiency Nn txic Envirnmental cmpliance Water quality and usage Waste management GHG emissin management Envirnmental certificatins Abriginal wnership Lcal prductin Supplier diversity Labur standards and emplyment practices Health and safety Human rights Accessibility fr peple with disabilities Prducts whse sales supprt a wrthy cause Like minded businesses They reference the fllwing prduct categries as pririties: paper, envelpes, business cards, client statements, and marketing materials; ffice supplies, furniture, equipment, and appliances; cleaning materials / services; prmtinal items; cffee; building materials (including carpets, paint, etc.) Many cmpanies reprt n their sustainable purchasing prgress thrugh key perfrmance indicatrs (KPIs), as llws: Number and $ vlume f suppliers signing Cde f Cnduct Number f detailed sustainability assessments f majr suppliers Supplier capacity building Number f crrective actins cmpleted Summary Many cmpanies and ther rganizatins, such as gvernments and nn prfits, are initiating sustainable purchasing prgrams, in rder t set a curse f actin t align their purchasing with their CSR r sustainability cmmitments. 7

8 This scan shws a number f practices underway by seventeen leading sustainability cmpanies arund the wrld. By sharing the results f this research, The C peratrs and the BuySmart Netwrk prgram f the Fraser Basin Cuncil hpe this can help ther rganizatins establish a radmap fr mving frward n integrating envirnmental, ethical and scial factrs in their supply chains. 8