Driving ESG change in our supply chain
We support our suppliers to accelerate environmental, social and governance action.
Working with key suppliers as part of our Sustainable Procurement Programme, we are driving change in their organisations and beyond.
With c. 2,000 suppliers, the impact and reach we can have if we harness our influence is vast. Our Sustainable Procurement Programme is ESG-focused and backed by science-based targets. It drives improvements in areas such as sustainability and inclusion, diversity and equity, by encouraging our supplier organisations to become more transparent on their ESG performance and to make commitments to improving this performance. To support our suppliers on this journey, we share our own insights on best-practice and run training sessions too.
When setting our own science-based targets, we made a bold commitment to significantly reduce the carbon impact of our supply chain. Our supply chain accounts for a significant proportion of our firm's environmental footprint and we know we have a responsibility to help our suppliers on their journey and work collaboratively with them to share best-practice.
We ask our suppliers to report their carbon data, helping us to measure, and encourage, progress. In 2020, there was a 48% increase in supplier responses to the annual CDP disclosure. In same year, were named on the CDP Supplier Engagement Leaderboard, recognising our efforts to reduce carbon emissions and minimise energy consumption throughout our supply chain.
To help share best-practice, we facilitate roundtables, workshops and webinars for organisations in our supply chain. These have covered: the importance of reducing emissions; what good reporting looks like; and the approach to setting science-based targets. We also facilitate events for suppliers and industries that need extra support - for instance, in 2020, we brought together suppliers from across the hotel industry to share ideas on the collective action they could take to tackling the environmental impact of their sector.
Lorien / Human Resources Supplier
Since working with KPMG, we've learned what it means to be part of your business – including shared values and shared commitments. Every year, we complete KPMG's CDP questionnaire to monitor our environmental impact.
As a result of KPMG's influence, going green has become a board level initiative, with CEO sponsorship, project governance and science-based targets (soon to be released). As a Group, we have calculated our environmental impact across scope 1, 2, and 3 emissions sources in the UK and we have begun to rationalise our property portfolio to invest in eco-friendly infrastructure. In addition to carbon neutrality, we are also committing to greater education and communication for our 2,500 people as well as flowing commitments down to our own supply chain.
We have been inspired by KPMG's clear targets, project-based approach, and work with your value chain, as well as c-suite sponsorship and employee engagement on the ground.
We are a Principal Partner of the Living Wage Foundation and are proud to be an accredited Living Wage Employer. Suppliers on our premises must pay their staff at least the Living Wage and are required to confirm their compliance to doing so on an annual basis.
We work with our strategic suppliers to create and promote inclusive environments. Our Sustainable Procurement tender questions and Supplier Code of Conduct reiterate our expectation on suppliers to promote inclusion, diversity and equity within their businesses. We invite our suppliers to join our educational webinars, to support them with this.
We have a zero-tolerance stance on modern slavery and we expect our suppliers to share our high standards towards ethical behaviour. We take a risk-based approach to understanding and monitoring our supply chain. In FY20, we took into consideration location of operations and prevalence of modern slavery; category risk and vulnerable worker groups; along with the level of spend and whether a contract is in place. Using this approach, we identified 59 high and medium risk suppliers which were sent a modern slavery self-assessment to complete. We engaged with these suppliers to provide information on policies, procedures and training within their own operations, and their supply chain, to identify any gaps or areas of risk. modern slavery was not identified in any of the responses received. More details on our approach to managing risks of modern slavery in our supply chain can be found in our Modern Slavery Statement.
Following the momentum of the Black Lives Matter movement in 2020, we organised our first roundtable on Addressing Racial Inequality. Focusing on seven of our most important Facilities suppliers, we explored the issue of Racial Inequality through a Facilities industry lens. In addition to representatives from each of the suppliers, KPMG subject matter experts and our relevant Sustainable Procurement Supplier Managers also attended.
Our suppliers were at different points in their journey, so for some, it was a great opportunity to learn from peers, whilst others provided useful insights on what had worked well in their business. Supplier Managers were then able to follow up with suppliers on an individual basis after the event to continue the conversation and learnings.
Following the positive response from the Facilities roundtable, we ran follow-on events for seven suppliers across our Professional Services, Technology and Travel industries. It was clear from the first event that to maximise discussion, the format of having smaller events that allowed all organisations to contribute was powerful and we will replicate this going forward.
Our Supplier Code of Conduct, which is based on the 10 pillars of the UN Global Compact, cascades Our Values and practices across the supply chain. We attach this to supplier contracts, KPMG terms and purchase order forms and expect all our suppliers to comply with, or exceed the principles within it. In addition, Requests For Proposals led by our strategic sourcing team include specific questions on sustainable procurement practices. These questions were designed in collaboration with our internal Environment and Inclusion, Diversity and Equity subject matter experts.
The Sustainable Procurement Programme is led by our Chief Procurement Officer. Our Sustainable Procurement Steering Group, which comprises representatives from our Procurement, Corporate Responsibility and Inclusion, Diversity and Equity teams, oversees the implementation of the Programme.