|
To enable our procurement teams to play an active role in CR, a procurement representative from each of our regional businesses (and from some key suppliers) participate in our Environmental Management Committee (EMC).
Each of our regional businesses regularly reports on supply chain performance to its senior management:
-
Supply chain performance is reported to Bank of New Zealand's CSR Executive Committee Council, on a regular basis, as part of regular CSR updates.
-
In Australia, an Offshore Governance Committee oversees all outsourcing (including off shoring) projects. Senior management of the Australian business is regularly asked to endorse procurement policies and to review other supply chain matters on an as required basis at least every quarter.
-
In the UK, the sourcing services provided by Xchanging Procurement Services are monitored by a Service Review Board which provides operational and executive level oversight. The performance of other strategic suppliers are managed by individual functions in accordance with both internal NAB policies and external requirements of applicable regulators.
Managing supply chain relationships
Working with our suppliers to create mutual value and to meet shared performance goals is an important part of our procurement process. This starts with the selection process and is regular and ongoing. We look to do business with like-minded organisations with high ethical standards.
CR in the supplier selection process
NAB operates a fair and equitable procurement selection process. Our process aims to clearly inform potential suppliers of our expectations, policies and requirements, which includes doing business with suppliers that have sound environmental, workplace and human rights practices. If a supply contract has been put out for tender, then supplier proposals are evaluated against a pre-determined evaluation matrix, which includes any relevant CR criteria and commercial requirements.
Across the Group, we include environmental and social criteria in the tender evaluation process. Our tender process includes a CR checklist asking suppliers about their workplace, human rights and environment practices.
Monitoring supplier performance
Monitoring our suppliers' performance is an important aspect of the ongoing relationship. Each regional business monitors supplier performance through their day-to-day relationships with suppliers. Since 2005, where appropriate, we have included clauses in new supply contracts to reflect our CR requirements.
Our policy is to ensure our suppliers are aware of important environmental, social and ethical risks and opportunities and then to work with them to address any issues. We have begun this supplier education process with key suppliers that help us to manage our environmental and social performance, or that have gone through recent tender processes.
A number of our suppliers, including our facilities managers, help us to monitor, improve and report on our own CR performance.
|
