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Severn Trent, the UK-based environmental services company with a
procurement budget of £1billion ($1.75bn) a year, is aiming to ensure
that two-thirds of its supply chain is covered by ‘basic’ corporate
responsibility assessments by March 2007.
The target has been set as part of a review of the group’s supply chain assessment processes. The company defines ‘basic’ as including environment, health and safety and human rights clauses in supply contracts. By the same deadline Severn Trent has also committed itself to ensuring a third of its suppliers are assessed in more detail on corporate responsibility matters. They will have to submit to a site audit, agree an improvement plan or meet ISO14001 and other external standards.
‘We divided the targets into two categories because it’s important that we move towards having a corporate responsibility overview of the whole supply chain,’ said Andy Wales, Severn Trent’s group head of corporate responsibility. ‘Then we will be able to focus resources on areas that need the most investigation.’
The TwentyFifty consultancy is conducting a study of Severn Trent’s assessment processes. The findings, due to be completed early this year, will give the company a means of identifying areas for improvement and will suggest ways to improve its assessments. Severn Trent Water and Biffa Waste Services, the two largest business units, so far require main suppliers to complete only an environmental questionnaire. A tool for identifying supplier risks related to labour issues and human rights, particularly in developing countries, has also been developed.
The target has been set as part of a review of the group’s supply chain assessment processes. The company defines ‘basic’ as including environment, health and safety and human rights clauses in supply contracts. By the same deadline Severn Trent has also committed itself to ensuring a third of its suppliers are assessed in more detail on corporate responsibility matters. They will have to submit to a site audit, agree an improvement plan or meet ISO14001 and other external standards.
‘We divided the targets into two categories because it’s important that we move towards having a corporate responsibility overview of the whole supply chain,’ said Andy Wales, Severn Trent’s group head of corporate responsibility. ‘Then we will be able to focus resources on areas that need the most investigation.’
The TwentyFifty consultancy is conducting a study of Severn Trent’s assessment processes. The findings, due to be completed early this year, will give the company a means of identifying areas for improvement and will suggest ways to improve its assessments. Severn Trent Water and Biffa Waste Services, the two largest business units, so far require main suppliers to complete only an environmental questionnaire. A tool for identifying supplier risks related to labour issues and human rights, particularly in developing countries, has also been developed.
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