Our Supply Chain Charter

Transcription

1 Our Supply Chain Charter Places People Prefer May 2015

2 INTRODUCTION OUR 2020 SUSTAINABILITY STRATEGY SUPPORTING OUR BUSINESS STRATEGY AND HELPING TO INCREASE APPEAL FOR OUR STAKEHOLDERS... Our Supply Chain Charter supports our 2020 sustainability strategy, which is designed to help us to drive preference building on our strong social and environmental record to deliver lasting value for our business, our stakeholders and the wider society. Occupiers and the people who work, shop and live in our buildings Investors and joint venture partners WELLBEING FUTURE PROOFING CUSTOMER ORIENTATION CAPITAL EFFICIENCY Places People Prefer COMMUNITY RIGHT PLACES EXPERT PEOPLE SKILLS AND OPPORTUNITY Local people and businesses Local authorities and communities By working with our suppliers we can make a bigger impact. We encourage our suppliers to support the delivery of our Supply Chain Charter. 2 British Land Supply Chain Charter The development of this Charter was informed by a comprehensive review of social, environmental and ethical risks across our supply chain. It goes beyond compliance with legislation, which is a basic requirement for all our suppliers. We recognise that not everything we purchase has a significant sustainability impact and that the emphasis of this Our corporate strategic pillars Our sustainability focus areas Our stakeholders Charter will be different for each supplier. We will support and work with our supply chain towards our requirements where appropriate. We will seek evidence that our suppliers are compliant with our requirements where appropriate. cont >

3 Summary For more detail on our requirements, please see pages 4 to 11. Wellbeing 1. Health and wellbeing We require all suppliers working at our properties and developments to comply with our supply chain health and safety standards. 2. Labour practices We expect all businesses in our supply chain to respect the people they employ and to offer a safe workplace free from discrimination, harm, intimidation, harassment or fear. 3. Biodiversity We expect our suppliers to support our aim to enhance net biodiversity on our development sites and to understand biodiversity risks in our managed portfolio. Community 4. Community engagement We expect our suppliers to engage with the local community, minimise disruption to local people, which can particularly be an issue during construction, and actively support local projects. 3 British Land Supply Chain Charter Future proofing 5. Environmental management We require all our suppliers to have effective environmental management systems appropriate for the nature and scale of their business and services. 6. Energy and carbon Where our suppliers work affects our energy consumption, we expect them to seek to improve energy efficiency and optimise low-carbon energy supply, taking full advantage of Government initiatives. We expect manufacturers and purchasers of energy-intensive products and materials to understand the embodied carbon footprint of these items and demonstrate plans to reduce it. 7. Materials and waste We expect suppliers producing waste at our properties and developments to support our aim to send zero waste to landfill, measuring and reducing waste at source, re-using and recycling. We expect our suppliers to use secondary (re-used or recycled) materials wherever possible and otherwise virgin materials certified in accordance with responsible sourcing best practice. Skills and opportunity 8. Local employment and procurement We expect our suppliers to be proactive in offering local businesses and local people the opportunity to compete for work with them at our sites. 9. Skills and capacity building We expect our suppliers to build local skills and capacity, by supporting apprenticeships, training and education in ways that represent best practice in their sectors, and by focusing on quality outcomes for participants. 10. Prompt payment We expect all businesses in our supply chain to be paid within agreed terms. 11. Fair practices We will not tolerate corruption, bribery or unfair, anti-competitive actions in our supply chain. Management 12. Implementation and controls We expect our suppliers to manage their supply chains in accordance with the most appropriate best practice standard.

4 Wellbeing 1. Health and wellbeing We require all suppliers working at our properties and developments to comply with our supply chain health and safety standards. Minimum requirements for suppliers: Effective health and safety management systems Occupational health services appropriate for the nature and scale of their business and services Compliance with relevant legislation such as CoSHH (Control of Substances Hazardous to Health), REACH (Registration, Evaluation, Authorisation and restriction of CHemicals) and RoHS (Restriction of Hazardous Substances Directive) where appropriate Compliance with minimum standards in our contracts for materials not harmful to health in manufacture, use or disposal, where relevant. For example, we strive to avoid purchasing plastics such as PVC containing phthalates, or materials containing cadmium, hexavalent chromium, lead or mercury. cont > 4 British Land Supply Chain Charter

5 Wellbeing 2. Labour practices We expect all businesses in our supply chain to respect the people they employ and to offer a safe workplace free from discrimination, harm, intimidation, harassment or fear. 3. Biodiversity Minimum requirements for suppliers: Compliance with relevant legislation for employment, health and safety, and working hours. We also expect: Suppliers to have an equality and diversity policy that actively promotes employment equality, without resorting to positive discrimination, to encourage a diverse workforce that is representative of society today Documented grievance procedures communicated and made fully available to staff No child labour or forced labour No exclusive zero-hours contracts No unpaid work of any kind Respect for the rights of freedom of association and the right to collective bargaining Working hours that comply with benchmark industry standards. We have been guided by the Ethical Trading Initiative Base Code: We expect our suppliers to support our aim to enhance net biodiversity on our development sites and to understand biodiversity risks in our managed portfolio. Biodiversity is essential for many of the Earth s natural systems to function, and certain locations and species are protected by law. Our biodiversity initiatives often offer opportunities for us to create pleasant spaces that add to people s sense of wellbeing and enhance air quality, supporting our Wellbeing focus area. 5 British Land Supply Chain Charter

6 Community 4. Community engagement We expect our suppliers to engage with the local community, minimise disruption to local people, which can particularly be an issue during construction, and actively support local projects. Engaging with the local community and building local relationships are key commitments set out in our Community Charter and Sustainability Brief for Developments. We expect: Suppliers to engage with the local community and build local relationships Suppliers to support good community causes by providing pro-bono support where they can Contractors on our major developments to score above 38 on the Considerate Constructors Scheme Contractors on our major developments to support at least one community day each year, where members of their team will give time to a local project Property managers to engage with occupiers, sharing information about good community causes. We recognise examples of best practice. 6 British Land Supply Chain Charter

7 Future proofing 5. Environmental management We require all our suppliers to have effective environmental management systems appropriate for the nature and scale of their business and services. 6. Energy and carbon Our ISO Environmental Management System (EMS) applies to all major developments (those which exceed 5 million in construction value) managed by British Land. Minimum requirements for suppliers: Comply with relevant environmental legislation Comply with standards and codes specific to their industry. We also expect suppliers to: Comply with the requirements of our EMS and Sustainability Brief for Developments Contribute to our requirement to achieve BREEAM Excellent on office developments and Very Good on retail developments. Good environmental management covers areas including energy use, carbon emissions, sourcing of materials, waste management and water use. Where our suppliers work affects our energy consumption, we expect them to seek to improve energy efficiency and optimise lowcarbon energy supply, taking full advantage of Government initiatives. We expect manufacturers and purchasers of energy-intensive products and materials to understand the embodied carbon footprint of these items and demonstrate plans to reduce it. We expect suppliers to work with us to achieve our targets: 55% landlord energy intensity total portfolio reduction against % Scope 1 and 2 carbon intensity reduction against % reduction in landlord embodied carbon intensity for projects over 50 million against 2015 per m². On our developments, BREEAM certification drives efficient design. cont > 7 British Land Supply Chain Charter

8 Future proofing 7. Materials and waste We expect suppliers producing waste at our properties and developments to support our aim to send zero waste to landfill, measuring and reducing waste at source, re-using and recycling. We expect our suppliers to use secondary (re-used or recycled) materials wherever possible and otherwise virgin materials certified in accordance with responsible sourcing best practice. We expect suppliers to ensure that: 100% of timber is certified FSC (Forest Stewardship Council) or PEFC (Programme for the Endorsement of Forest Certification) 100% of demolition waste is diverted from landfill 98% of construction and fit-out waste is diverted from landfill 100% of managed waste is diverted from landfill Packaging is reduced as much as possible. Unavoidable packaging should be from secondary sources and have the potential to be re-used or recycled after use Incineration without energy capture is only to be used as a last resort They comply with the Materials Schedule in our Sustainability Brief for Developments. 8 British Land Supply Chain Charter

9 Skills and opportunity 8. Local employment and procurement We expect our suppliers to be proactive in offering local businesses and local people the opportunity to compete for work with them at our sites. Supporting local employment and procurement are key commitments set out in our Community Charter and Sustainability Brief for Developments. We will work with our managing agents and contractors on our major developments to ensure that we provide full and fair opportunities for competitive local suppliers to participate in our supply chain and to employ suitably qualified local people to work at our properties and developments. This will include the development of local procurement plans by our suppliers and the requirement for these suppliers to report their performance against these plans. 9. Skills and capacity building We expect our suppliers to build local skills and capacity, by supporting apprenticeships, training and education in ways that represent best practice in their sectors, and by focusing on quality outcomes for participants. Supporting training and education for local people is a key commitment set out in our Community Charter and Sustainability Brief for Developments. Across all our suppliers, we encourage opportunities for apprentices and expect our suppliers to work with us in promoting opportunities. We expect our suppliers on our developments and managed portfolio to ensure 3% of their UK employees are apprentices where relevant. Our supply chain should be able to demonstrate commitment to developing their sustainability skills and competence. cont > 9 British Land Supply Chain Charter

10 Skills and opportunity 10. Prompt payment We expect all businesses in our supply chain to be paid within agreed terms. We are signatories to the Prompt Payment Code. As set out in our Supplier Payment Policy, we undertake to pay our suppliers within 30 days, unless otherwise agreed. We expect subsequent tiers of our supply chain to be offered the same terms and to be paid on time. 11. Fair practices We will not tolerate corruption, bribery or unfair, anti-competitive actions in our supply chain. Minimum requirements for suppliers: Record the correct nature of all financial transactions in accordance with accepted accounting principles Controls in place to ensure adequate levels of data protection for their clients, employees and supply chain Have an ethical business policy that describes how they control and govern ethical behaviour of their workforce and supply chain. 10 British Land Supply Chain Charter

11 Management 12. Implementation and controls We expect our suppliers to manage their supply chains in accordance with the most appropriate best practice standard. We consult with our suppliers where we believe significant social and environmental risks exist in spend categories across our business. We seek to manage our own supply chain in accordance with best practice standard BS 8903: We recognise that not everything we purchase will have a significant sustainability impact and that the emphasis of the Charter will be different for each supplier. We therefore adopt a prioritised approach to the actions we expect our suppliers to undertake. We will prioritise: Sustainability issues identified as red or amber for each supplier spend category. See our Supply Chain Heat Maps on: Suppliers with which we spend more than 20,000 per annum. This will enable us to influence 85% of our total spend. In high risk areas, we will seek evidence that suppliers are compliant with our requirements where appropriate, as defined in our contracts. We encourage suppliers to publish their performance openly and transparently. Where annual spend is less than 20,000, we still expect suppliers to identify and effectively address any significant sustainability risks. 11 British Land Supply Chain Charter

12 Additional British Land guidance Available for download at: Community Charter Community Toolkit Health and Safety Policy for Developments Health and Safety Policy for Managed Properties Supplier Payment Policy Sustainability Brief for Developments Sustainability Brief for Management. Contact us: Head Office and Registered Office British Land, York House 45 Seymour Street, London W1H 7LX +44 (0)