From information security and protecting the environment, to anti-corruption and upholding human rights, we want our suppliers to join us in working as sustainably and ethically as we can.
Every year, we spend more than £10bn with around 20,000 directly-contracted suppliers around the world. Our ambition is to be responsible and sustainable for our customers and the communities we operate in. We cannot achieve this alone, therefore it is important that we collaborate and partner with our suppliers to make a positive business difference over the long term.
We periodically update our Supplier Principles to reflect changes in laws and regulations, and to incorporate and progress issues that are important to us. In 2022 we updated our Supplier Principles to expand our expectations in relation to human rights and sustainability.
Click on the document at the bottom of this page to hear from our Chief Executive, Charles Woodburn, and to read our 'Supplier Principles - Guidance for Responsible Business'.
Supplier due diligence
Risk-based due diligence is undertaken for all third parties with whom we engage, whether supplier, adviser, potential joint venture partner, acquisition opportunity or other third party. Where required, this may include establishing the identity of the third party in terms of beneficial ownership and gathering of sufficient information to assess relevant bribery and corruption risks. At the contracting stage we stipulate our expectation that suppliers embrace our standards on ethical behaviour, including those set out in our Supplier Principles.
Once a supplier has been approved and a contract has been signed, we continue to actively manage and monitor that supplier throughout the life of their contract. This includes managing any significant changes in our relationship with the supplier as well as undertaking ongoing risk-based due diligence. Throughout our relationship with our suppliers, we raise awareness of and engage them in our Supplier Principles.
During 2021, we undertook supply chain assurance activity to assess compliance with our Supplier Principles. This activity supports us in identifying and mitigating risks across our supply chain. Our assessments covered 25% of global spend. This activity will continue in 2022 and comprises a series of questions to test each supplier’s adoption of the elements of our Supplier Principles and to identify any risks that require further investigation.