1.
Document Classification: EcoVadis Public
Scaling Up Sustainable Procurement
A New Phase of Expansion Must Begin
Webinar - March 2017

2.
Document Classification: EcoVadis Public
Presenters
Pierre-François Thaler
Co-CEO
EcoVadis
Sustainability Ratings for
global supply chains
Barb Brown
Co-Founder
BrownFlynn
Sustainability consulting, experts in
reporting frameworks, GRI certified
trainers

3.
1. Introductory perspective – Barb Brown
2. Highlights from 2017 EcoVadis / HEC Barometer – Pierre-François
3. Selected case examples and insights – Barb Brown
4. Q&A session
Agenda

4.
Document Classification: EcoVadis Public
Investors Evaluate Sustainability Management
Investors pressure large public
companies, who in turn share
the pressure of responding
upstream to suppliers
“…we are convinced that
addressing ESG issues is a good
business practice and must be part
of effective board leadership and
oversight of long-term strategy..”
- Ron O’Hanley, President & CEO,
State Street Global Advisors
“At companies where ESG issues
are handled well, they are often a
signal of operational excellence”
- Larry Fink, CEO BlackRock

5.
Document Classification: EcoVadis Public
Supply Chain Developments
Sustainability Surveys
 IBM
 Airbus
 Kaiser Permanente
 Siemens
 Marathon Oil
 British Telecom
 Boeing
 Ingersoll Rand
 Volvo
 United States Postal Service
 Wal-Mart
 BMW
 Johnson Controls
Sustainability Training
 Nike
 Puma
 Apple
 AT&T, Inc.
 Mattel
 Bristol-Myers Squibb
 Campbell’s
 Intel

6.
Document Classification: EcoVadis Public
Poll question
How would you rate the maturity of your Sustainable
Procurement program?
• Have not started yet
• Have started recently monitoring supplier CSR risk
• Have increased coverage and set CSR targets for buyers
• Have gone beyond tier 1, CSR is part of supplier scorecard

7.
Document Classification: EcoVadis Public
7
Highlights from 2017
EcoVadis / HEC Barometer

8.
Document Classification: EcoVadis Public
Summary
Our main survey’s population
• 75% based in Europe.
• 25% from France
• 18% from the UK
• 12% from the US
Companies with annual revenues
of at least 500 million
• 42% companies with 5 billion and 25
billion
• 25% were above 25 billion
• 34% under 5 billion
Responses were spread across
industry sectors
• Manufacturing sector (14 %)
• Retail & consumer goods (13 %)
• Services (12 %)
• ICT/telecommunications (9 %)

9.
Document Classification: EcoVadis Public
Procurement Priorities

10.
Document Classification: EcoVadis Public
When comparing to our 2013
study, this year we see a
convergence between the US
and Europe on the same top
three drivers and priorities for
SP programs: Brand
Reputation, Risk Mitigation,
and Compliance.
Sustainable Procurement Drivers

11.
Document Classification: EcoVadis Public
“ Multi-tier visibility and
traceability to the origins of
our supply chains and
transparent reporting on this
to our stakeholders is rapidly
becoming a requirement for
us”.
Top 5 Pharmaceutical
Company
Global Supply Chain Coverage Expands Drastically

12.
Document Classification: EcoVadis Public
“ Auditing and SAQs have
created fatigue.
Furthermore, these exercises
are not producing our
desired results. We are
decreasing the volume and
optimizing the quality of our
audit program.”
Top 20 Industrial
Conglomerate Company
Sustainable Procurement Tools

13.
Document Classification: EcoVadis Public
Exec support, but lacking internal resources

14.
Document Classification: EcoVadis Public
“ I do believe in the correlation
between sustainability and
innovation. When a supplier
demonstrates their commitment
to CSR, they are demonstrating
their ability to look forward - that
they have a long-term vision. I
think this is fundamental to the
capacity for innovation.”
Top 5 Beverages Company
SP Leaders - New and Enhanced Benefits

15.
Document Classification: EcoVadis Public
How do you engage your supply chain to drive
improvements on sustainability issues?
• Compliance and contract terms
• On-site audits and/or sustainability assessments
• Set performance targets with recognition and/or incentives
• Collaborate on improvement plans and/or education on CSR
Poll question

16.
Document Classification: EcoVadis Public
“ I believe that supplier
engagement and awareness
campaigns can only be
successful if all parts of the
business that interact with
suppliers are aligned, otherwise
you are destined to send mixed
messages that will put your level
of commitment in question.”
- 10 Medical Equipment
Company
Supplier perceptions and engagement

17.
Document Classification: EcoVadis Public
✓ Ensure the quality of external reporting on supply chain & supplier performance
✓ Stay the course: It may take five or more years to reach upside returns from your
SP program.
✓ Find tools that will scale for increased program coverage and depth
✓ Stay in sync with supplier perceptions and the efficacy of engagement methods.
Barometer conclusions & Recommendations

18.
Document Classification: EcoVadis Public
Best Practice
Cisco has a human rights policy and states,
“Cisco upholds and respects human rights as
contained in the United Nations Universal
Declaration of Human Rights (UDHR), the eight
Core Labor Conventions developed by the
International Labor Organization (ILO), the United
Nations Global Compact (UNGC), and the United
Nations Guiding Principles on Business and Human
Rights.”
https://csr.cisco.com/cdnorigin/media/documents/Human-Rights_129973805781330000.pdf
Policies Endorsement Actions Coverage Certifications Reporting Document
Human Rights
Policy

19.
Document Classification: EcoVadis Public
Best practice
General Motors demonstrates its commitment to
the United Nations Global Compact by including
an index of UNGC-related content within its
sustainability report.
http://www.gmsustainability.com/reporting/ungc.html
Policies Endorsement Actions Coverage Certifications Reporting Document
GM Commitment to UN Global
Compact
Human Rights
Environment
Labor
Standards
Anti-
Corruption

20.
Document Classification: EcoVadis Public
Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
Forest City has employee resource groups in
place to support their goal of increasing
diversity.
They also survey employees on their
engagement levels and measure promotions by
individuals who are members of resource
groups.

21.
Document Classification: EcoVadis Public
Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
Texas Instruments provides evidence that
actions taken to meet their energy efficiency
goals are disseminated throughout the company.
Their energy champions at each facility ensure
that a master list of best-practice sharing is kept
up-to-date.
http://www.ti.com/corp/docs/company/flipbooks/2016/citizenship/?HQS=corp-cit-null-ccr2015-
pr-ebook-null-wwe

22.
Document Classification: EcoVadis Public
Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
As we work to reduce our footprint throughout the
value chain, we rely on external certification
systems to validate our procedures and guide our
continuous improvement plans.
Our Gebze, Turkey; Zhejiang, China; and Haverhill,
U.K., facilities achieved this certification in 2015 or
early 2016.
Certificate

23.
Document Classification: EcoVadis Public
Best practice
Policies Endorsement Actions Coverage Certifications Reporting Document
Reynolds American reports KPIs through its
annual sustainability report.

24.
Document Classification: EcoVadis Public
Q&A
Coming up: EcoVadis conference "SustaIn" is the annual event dedicated to supply chain
sustainability, bringing 400 around 400 sustainability and procurement professionals
http://www2.ecovadis.com/sustain-2017

25.
Document Classification: EcoVadis Public
25
David McClintock
Marketing Director, EcoVadis
marketing@ecovadis.com
Barb Brown
Co-founder BrownFlynn
barbb@brownflynn.com
Thank you!