Westpac launches new sustainability code for its 10,000 suppliers

Westpac has announced a further step in its sustainability journey, becoming the first Australian bank to establish strict environmental, social and ethical standards for its entire supply chain of over 10,000 companies.

The bank’s new Sustainable Supply Chain Management (SSCM) Code of Conduct requires all suppliers to show they meet a set of minimum standards of regulatory compliance and responsible business practice. Suppliers who cannot or will not meet these standards will be removed from the supply chain.

“The strength and integrity of our supply chain is a critical factor in Westpac’s overall sustainability performance. It’s important that we set out clearly our minimum standards and expectations, and we will be working closely in partnership with our suppliers to support them in achieving these goals,” Lyn Lennard, Westpac’s general manager, group and risk services, said.

Lennard said that the SSCM Code of Conduct is built on Westpac’s existing detailed screening of its suppliers’ social, ethical and environmental business practice that has been in place since 2003.

“More than two-thirds of our (indirect) supply chain spend has already been screened resulting in positive changes to the way we and our suppliers do business,” Lennard said.

“Now we are improving the experience for smaller suppliers, and setting out the minimum standards we require from all our suppliers.”

The bank has also recently introduced a number of measures targeted at high-impact components of its supply chain, including:

• Developed new purchasing standards for IT hardware, to ensure the environmental performance of the bank's laptops and PCs purchased in future will be Energy Star rated 4.0;
• Reducing the carbon emissions of the bank’s car fleet by selecting vehicles which emit less CO₂ and air pollution than previous fleet choices, and extending the life of the bank's branded VW Beetles;
• Introduced a Paper Purchasing Policy, to ensure the paper the bank purchases comes from sustainably managed forests;
• Introduced Fair Trade coffee as an option for all the bank's offices and branches. Fair Trade coffee is certified as coming from traders who promote sustainable development by offering better trading conditions to marginalised workers and producers of coffee.

For more information, visit http://www.westpac.com.au/corporateresponsibility.