Our supply chain ESG programme
We have established an Environmental, Social and Governance (ESG) Programme for our Supply Chain to ensure the values and practices of our suppliers align with our Responsible Procurement Principles, Contact26 strategy, and Supplier Code of Conduct. This also helps us identify and manage risks in our supply chain (including modern slavery) and enables us to work directly with suppliers when necessary to help them align their sustainability journey with our goals.
Our Supply Chain ESG Programme is overseen by our Senior Procurement and Contracting team, with oversight from our Leadership Team.
Our procurement strategy
Contact is reinvigorating our procurement programme, and with it, our strategy. In 2023 we began a process of centralising and expanding our procurement team, enabling us to refine our existing practices and build additional capabilities. Ultimately, we’d like to be able to monitor our supply chain more frequently with less effort.
We are also keen to work with suppliers to develop their own capabilities, collaborate on ways we can share learning, and offer training to support suppliers to improve their own ESG practices. Part of this will involve developing goals and targets related to procurement, allowing us to track the effectiveness of our programme.
Managing risk through responsible procurement
We identify potential sustainability risks in our supply chain by identifying significant suppliers (the top 100 suppliers based on spend) and suppliers where factors such as geographic location may pose substantial risk.
We screen all newly created suppliers for any negative ESG impacts via our Responsible Procurement (ESG) Questionnaire and Declaration form; and since 2022 have screened the top 100 by spend each year. Areas of risk may include breaches of human/labour rights, corruption and anti-competitive practices, or lack of an environmental management system, for example. The results of the questionnaire are used as inputs to our final procurement decision.
When we work with suppliers, we prioritise the following principles in line with our Supplier Code of Conduct and tikanga:
- Ethical business
- Health, Safety and Wellbeing
- Social Responsibility
- Environmental Sustainability
- Information Security and Privacy
Learning and engagement
The global procurement environment is ever-changing so we keep up-to-date with leading practices in a number of ways:
- We monitor ESG frameworks to learn how our partners and competitors may be evolving their own supply chain programmes, and aim to include this within our practice where practical.
- Through Contact University, we offer a wide range of courses in procurement available to all team members, with some compulsory courses depending on a team member’s role.
We also recognise the importance of our local environment and try to fit global best practice with the scope and size of our operations within Aotearoa. Where possible, we use local suppliers, allowing us to reduce our carbon footprint while also supporting local businesses and communities. We listen to our suppliers to learn how they operate and understand their views on ESG.
Our responsible procurement principles
Underpinning our ambitions are our Responsible Procurement Principles:
Ethical business – We conduct our business ethically, transparently and in accordance with laws and regulations. We regularly review and report on our performance in these areas, ensuring we address any issues. We work with suppliers who do the same so together we put our energy where it matters.
Social responsibilities – We value a workplace that is inclusive, embraces diversity, and supports the people and communities we work with. We are committed to ensuring there are no modern slavery activities within our supply chain, and that everyone is paid a fair wage for the work they do. We expect our suppliers to do the same and seek to work with suppliers who care for their staff and communities, meet international labour standards, support the needs of their local communities, and create a fair and equitable workplace for all.
We’re looking to strengthen our supplier onboarding practices and direct more business to social enterprises and companies owned by Māori and Pacific peoples. This year we are seeking memberships of Ākina (Aotearoa’s leading impact consultancy) and Amotai (Aotearoa’s supplier diversity intermediary connecting Māori and Pasifika owned businesses with buyers wanting to purchase goods, services and works).
Health, safety and wellbeing – We care deeply about the health, safety, and wellbeing of our people. We monitor our performance through Ngā Kawenga Whakaruruhau ō Contact (our health and safety management system) and we act honestly, with integrity and in accordance with the law at all times.
Our transformative ways of working programme helps our team members find balance in their work and home life. Anyone entering our worksites receives appropriate site-training, equipment, and protection. We expect our suppliers to care about the wellbeing of their people, putting in place procedures, training and equipment to keep them safe on their sites, as well as ours.
Environmental Sustainability – At Contact we use New Zealand's precious natural resources to create energy. We recognise that our actions impact the environment, and we are committed to caring for the places we operate in. We seek to minimise our impact, including reducing our contribution to climate change. We have extensive biodiversity plans at each of our sites, and work with a number of community and iwi groups, such as the Wairākei Hapū Collective, Mata-Au Mitigation Trust, and Ohaaki Landowner Collective to manage our impacts and restore local ecosystems.
We are committed to generating electricity from renewable resources. It's about making sure we are looking after the next generation. Similarly, we expect our suppliers to focus on reducing the environmental impact of their businesses.