Key Performance Indicator:
To work with suppliers to maximise the beneficial social impact of our business and minimise the environmental impact of our business.
We recognise that our own social, environmental and economic impact goes beyond the products and services we provide, to include the performance of our suppliers and contractors. Therefore, our policy is to work in partnership with suppliers who operate with policies and procedures consistent with the standards set out in our Group Code of Business Conduct (the Code), and to help them reduce their impact on the environment.
Prudential UK CR Supply Chain Programme
The UK purchasing and strategic sourcing team has been developing its CR supply chain programme since 2002, focusing on those suppliers who potentially pose the greatest environmental and social risk, based on responses to our pre-assessment questionnaire. Our CR questions ask for each supplier’s stance on environmental management practices, the United Nations Universal Declaration of Human Rights and the International Labour Organisation (ILO) core labour standards and how these affect their own employees. As a result we have identified 65 suppliers to work with on the programme.
We have developed a new toolkit on how to work with suppliers to help them improve their scores on the questionnaire, and identify what actions they can take. This has been developed in line with the principles of ISO 14001 standard.
Procurement practices in Prudential UK have been successfully accredited with the Chartered Institute of Purchasing and Supply (CIPS) certification, which is an industry benchmark of recognised good practice.
“We are keen to work with and learn from our clients and suppliers to find areas where we can get better performance for all of our stakeholders and improve our impacts on the communities in which we work. We are delighted to be engaged in a long-term relationship with Prudential UK. We are finding that more of our clients and suppliers want to engage with us on CR initiatives in this way, which we greatly welcome.”
Gordon Hurst, Group Finance Director, The Capita Group Plc
PRUPIM Supply Chain Programme
During 2007, PRUPIM made a commitment to purchase Forest Stewardship Council (FSC) timber and, in cases where it proves unavailable, to obtain assurance that the timber originates from known and legal sources. This commitment relates to all timber products purchased through its facilities management department.
All PRUPIM’s procurement, other than construction procurement, is managed by Buying Force. With around £75 million of purchasing power, Buying Force’s ability to deliver considerable value to the procurement process is significant. We ensure high levels of compliance with sustainability standards.
Compliance with sustainability standards has been an integral part of Buying Force’s supplier selection and appraisal criteria for several years. Since 2006, suppliers are required to complete a self-assessment form, including a sustainability assessment, to determine the extent to which sustainability is addressed by each supplier. It will also be used to ensure that performance in this area is continually challenged, standards are maintained, and consistent poor performers are removed from our preferred list.
Corporate Property - UK Supply Chain Programme
Corporate Property, the team that manages Prudential’s own occupation of buildings, has teamed up with the Carbon Disclosure Project (CDP), an independent not-for-profit organisation, which aims to facilitate a response to climate change, and some of the largest purchasing global organisations under the CDP Supply Chain Leadership Collaboration (SCLC). CDP is working with these global companies and their suppliers to create a single standardised survey, to elicit key climate change information throughout their supply chains.
Each member of the SCLC has selected up to 50 suppliers to work on the programme. The results will help customers and suppliers work together to develop strategies to reduce their carbon footprints. Some members will work with suppliers at national level, others will work internationally. The project will be rolled out from May 2008.
Environmental Supply Chain Assessment - Business Travel
As a growing international organisation, we recognise that our overall travel emissions are a concern. Reducing them while continuing to meet business and customer needs is complex and we recognise we have more work to do in this area. We have commissioned Trucost, an environmental research organisation, to review some of the environmental impacts. This will help to inform our future decisions about business travel.