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The Sustainability Code of Practice (PDF, 36kb) sets the minimum social and environmental standards we expect of our largest suppliers (in terms of spend and potential social and environmental impact). It focuses on the following five key areas:
- Governance: identification and management of social and environmental risks
- Performance reporting: management and progress reporting on their environmental plan and workplace practices
- Environmental management: establishment and implementation of plans and management systems to monitor their environmental impacts
- Social responsibility: plans and management systems to monitor risks and opportunities associated with Occupational Health and Safety (OH&S) and employment practices
- Supplier management: suppliers engaging and managing their own suppliers’ social and environmental performance.
All new competitive Group-wide tenders are assessed for compliance with the Code.
ANZ is working with a targeted group of 12 of our largest suppliers to integrate the requirements of the Code of Practice into their supplier agreements. This work will continue with other large suppliers through 2009.
ANZ has developed a simplified process for other suppliers, recognising that some aspects of the Code of Practice may not be relevant or pragmatic due to their smaller size. These suppliers are encouraged to complete a Sustainability Self-Assessment Tool (xls, 74kb), a questionnaire designed to raise awareness of the types of social, ethical and environmental issues they should be addressing, and to help them identify areas for improvement.
The tool is used by ANZ as part of the tender process to evaluate prospective suppliers. Existing suppliers also complete the self-assessment as part of the annual review of their supplier contracts. Suppliers are asked to assess themselves against the following key measures:
- Governance: identification and management of social and environmental risks
- Environmental Management: plans and systems in place to manage and report environmental impact
- Occupational Health and Safety and employment practices: good employment practices reflected in management systems and policies on issues such as human rights, diversity, discrimination and training
- Stewardship: assessment of social and environmental issues in the design of products and services, supply chain management and participating in industry codes of practice
- Stakeholders: level and quality of engagement with stakeholders.
The self-assessment also includes questions designed to gauge how well the supplier complies with its own policies and social and environmental performance targets and reports on that performance.
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