Our approach to sustainable sourcing
ANZ operates in 34 markets utilising an extensive supply chain that comprises approximately 15,000 suppliers. Our supply chain is managed by our Global Sourcing Team.
We understand that through the procurement of goods and services we have the opportunity to influence the social and environmental performance of our supply chain, so we’re working with our suppliers to develop solutions that reduce our environmental footprint and help deliver better social outcomes.
Our approach is to identify the areas of greatest spend and understand which have the most significant environmental impact. Then, in partnership with our suppliers and the industry, we formulate strategies to minimise these impacts wherever we can. At all times our approach is guided by:
- Our Sourcing Policy (PDF 444kB), which defines the principles and behaviours expected of everyone involved in procurement to ensure all conduct is fair, safe and responsible. The policy reflects the principles of ANZ’s Code of Conduct and Ethics, and our Corporate Sustainability framework and priorities.
- Our Sustainability Guidelines for Procurement in specific categories such as IT, motor vehicle leasing, legal services, cards, travel, office products, advertising, print services and corporate wardrobe, which help sourcing managers understand and mitigate social and environmental impacts.
- The standards outlined in our Supplier Code of Practice, which aim to improve the social and environmental performance of our supply chain, and ensure that our suppliers have strong internal systems and governance processes in place.
Our commitment to providing employees at the ‘front-line’ of sourcing with regular training and information aims to ensure responsible practices are integrated into all sourcing decision-making.
We monitor compliance with our Supplier Code of Practice through our Operational Contract Management (OCM) framework and from 2013, risk screening by a third party. Where significant risks are identified as a result of screening, suppliers are asked to self-assess compliance with the SCOP. Self-assessments will be reviewed and where needed, we will work with suppliers to develop remediation plans. Each year we publicly report our performance.
Michael Collins, Head of Sourcing for North East Asia and Vendor Management in International and Institutional Banking division participated in the Taiwan workshop. Michael was accompanied by members of his team across China and Taiwan.
Michael commented, "The workshop gave my team a real appreciation of why we want our vendors to act responsibly and it’s had a direct impact on their work. Since the course I haven’t seen one 'push back'. Team members used to bring me cases where our vendors were requesting an alternative route to our compliance measures. Team members are now handling these issues themselves, persuading our vendors to comply with our Supplier Code of Practice.
Michael continued, "This approach is great for the bank, our suppliers and the local environment. Our reputational risk is diminished, vendors are more knowledgeable about our expectations, through the increased awareness of our employees; both of which are having a positive effect on practices in the region. These are important issues we’re talking about: trafficking of people, labour practices, environmentally-hostile activities and other potentially negative impacts.
"ANZ has a lot of exposure in Asia and its great that we’re having an influence on corporate responsibility as far as our sphere of influence can go; ie into our value chain" Michael said.
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