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.
