Isra-Mart srl:BT demands suppliers embrace carbon reporting

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Isra-Mart srl news:

BT has today launched one of the UK's most demanding and wide-ranging green procurement policies, insisting that all of the company's thousands of suppliers adhere to a package of sustainable best practices.

The new policy imposes three minimum expectations on all of the telco's contracted suppliers, requiring them to produce a formal climate change policy, report on their annual greenhouse gas emissions, and demonstrate "challenging" emission reduction targets.

Last year, the company spent £12bn with thousands of suppliers and, as a result, the new policy is expected to have a measurable impact on the number of firms in the UK reporting on their greenhouse gas emissions.

BT has worked with the Carbon Trust on developing the new policy and the two companies have been staging a series of free workshops for suppliers ahead of its launch, providing advice on how to comply with the new standards and develop effective climate change policies.

"This is not something that we're legally obliged to do, but we see this as key to delivering on our commitments on carbon reduction," said Liz Cross, CSR strategy and policy for procurement manager at BT. "We set our first carbon reduction target in 1992 and so initiatives like the workshops are a way for us to share what we've learned along the way. We've had really positive feedback from our suppliers on the workshops and we'll continue working with them on their own carbon plans."

The company is likely to be reluctant to ditch suppliers, preferring to work with partners to help them improve their climate change policy, but the new policy clearly contains the threat that those who do not comply with the standard could be axed. Moreover, the requirement that firms set emission targets and report on their progress presumably lays the groundwork for BT to gradually shift towards suppliers that consistently hit environmental targets.

"While there is no penalty for suppliers who don't meet the standard, tenders and replacement contracts will take into account the action taken by suppliers to reduce their carbon output," a spokesman for the company said. "BT is committed to working in partnership with all suppliers to ensure this takes place."

The move is likely to be welcomed by environmental groups, who have long argued that blue-chip firms and public-sector bodies have the potential to use their vast purchasing power to drive green best practices down the supply chain.

Hugh Jones, managing director of Carbon Trust Advisory Services, urged other firms to adopt similar procurement standards. "Such forward-thinking initiatives enable companies at all points of the supply chain to harness the efficiencies, opportunities and reputational benefits of the low-carbon economy now," he added.

The move will also further underline BT's position as a pioneer of green business policies, after the company emerged as one of the first firms to consistently report on greenhouse gas emissions, target energy savings, invest in renewable energy, and promote remote working for its workforce.