Supply chain is material to Reed Elsevier because unless we can be assured our suppliers are meeting the same high standards we set for our own activities, we risk damaging our business, reputation, and relations with key stakeholders.
We uphold RE values in our supply chain by requiring our suppliers to meet the same high standards we set for our own behaviour. Suppliers must adhere to all laws, embody and promote best practice in business operations, treat employees well and respect the environment, as indicated in the ten principles of the United Nations Global Compact to which Reed Elsevier is a signatory. These principles are reflected in our Supplier Code of Conduct, which we ask suppliers to sign and to post prominently in the workplace.
Objectives
Given the importance of an ethical supply chain, we have a Socially Responsible Supplier (SRS) programme comprised of colleagues with production, distribution and procurement expertise, and a dedicated manager in the global procurement team, supported by all RE divisions. The SRS programme terms of reference stipulate that internal and external audits be performed of high risk suppliers on a regular basis (those with repeat code violations are subject to annual external audits).
Results
In 2009, we expanded our Socially Responsible Supplier (SRS) database to 589 suppliers, encompassing critical, preferred, and strategic suppliers, and those we deem high risk according to criteria from the Corporate Executive Board¹s Global Country Analysis Support Tool and human trafficking data from the US State Department. We overestimated our target for signatories to the Supplier Code due to the fragmented nature of the supplier base and the introduction of new data gathering tools late in 2009. However, 50% of all suppliers were signatories by year end.
Of the 40 external audits of high risk suppliers by specialists ITS planned for 2009, 39 were completed and one was postponed until 2010. Any incidence of Supplier Code non-compliance identified in the audit process triggers a corrective action plan with tracked supplier remediation of all issues. In the future, we expect to see an increase in our SRS database and will be engaging more people within the business to reach a higher Supplier Code return rate; over the last two years, all new suppliers are required to sign our Supplier Code as a condition of doing business with us.
Supplier training and surveys
We work collaboratively with suppliers and in 2009 provided training on our approach to calculating and reporting on carbon emissions according to GHG Protocol Scope 1 and Scope 2 and water use/stress to better understand these impacts in our supply chain. All SRS suppliers were invited to attend sessions available in different time zones. See environmental data from our supply chain.
To track compliance with SRS initiatives, we conduct an annual survey of paper providers and a Social Responsibility Survey for all others. In 2009, the average survey response rate was 42%.
2010 Objectives:
- 60% of suppliers as Code signatories
- 40 external audits of high risk suppliers
- Ask key suppliers to become UN Global Compact signatories