Collaborating with suppliers

With an international supplier spend of around £3 billion, we can make a tangible positive impact on sustainability alongside our supply chain partners.

Our Sustainable Supplier Charter ensures our commitment to sustainable procurement is embedded in supplier management, applying the principles of the UK Chartered Institute of Purchasing and Supply’s (CIPS) Policy on Purchasing Ethics and the Canadian Institute for Supply Management (CISM) principles.

We put our efforts into building relationships with local businesses that share our values. For example, in the Middle East, we have trained 350 subcontractors in estidama (sustainability) workshops to factor sustainability into project planning and tenders.

Supply Chain Sustainability School

We are a Funding Partner of the Supply Chain Sustainability School – the award-winning collaboration initiative designed to offer free skills, training and action plans to suppliers across the full built environment. The School is an online virtual learning facility, and one of the most successful sustainability education initiatives in the history of the built environment. David Picton, our CSO, has been a member of the Leadership Council since 2013, and the School has made exceptional progress in upskilling supply chain companies and people.

Throughout 2014, we also chaired the expansion of the School beyond its original coverage of just the construction sectors, branching out to include Facilities Management (FM) and Services. More than eight months of hard work came to fruition at the end of the year – having managed to secure part-funding from the UK Commission for Employment and Skills – with the public launch of the expanded FM and Services arm of the School.

In the fields of sustainability, there’s little chance of achieving progress without collaboration – and the School offers:

  • best-practice resources to help FM suppliers and sub-contractors develop their sustainability knowledge and competence;
  • self-assessed action plans to demonstrate benchmarking, and routes of progress towards greater skills;
  • e-learning modules, plus unique management systems to track progress;
  • opportunities for involvement at supplier development days and sustainability workshops; and
  • access and input to other groups, events and initiatives within the wider Supply Chain Sustainability School (including groups focused on construction, infrastructure and research).

We ran our first Supplier Day with the School at Liverpool in April 2014, linked to our operations to build the Royal Liverpool University Hospital, with just over 110 delegates attending from 90 different companies. We covered perspectives from Carillion, from other partners in the School, from suppliers and from the Business in the Community regional teams who we work with to engage local communities and develop social value for the region.

We are also members of the School’s Horizon Group – comprising industry main contractors and partner universities specialising in the built environment. The group aims to improve the supply chain’s capability to deliver a sustainable built environment through collaborative research, and we are driving the first significant project to review ethical sourcing competence, knowledge and skills among the supplier base.

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Local sourcing and supporting SMEs

We aimed to place 45% of our UK supplier spend with local business last year, and we exceeded that to achieve 51%. Working with smaller local businesses has generated employment, boosted local economies and helped us to engage with the communities in which we work.

We have also exceeded the UK Government’s goal of directing 25% of spend towards SMEs for government contracts, with our current SME spend at 27%.

Our Small Business Charter was launched in 2014, showing how working with our 3,700 accredited SME businesses will support the UK economy and what our suppliers can expect when working with us, including access to our Early Payment Facility.

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Meeting local SME suppliers

Carillion held a business event for companies to discuss local opportunities and benefit from the Finningley and Rossington Regeneration Route Scheme. In partnership with Doncaster Council, a ‘meet the buyer’ day allowed businesses to scope requirements with the Carillion buying team and find out about planned developments.

This is a wonderful business development opportunity for Doncaster firms and a great chance for them to network with some of the biggest firms in the country. By meeting these decision makers it could open doors to new work, jobs and growth; ensuring the borough and our economy benefit at every opportunity.”

Ros Jones, Mayor of Doncaster

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Sustainable timber

Carillion has become one of the first British businesses to sign up to WWF-UK’s new forest campaign. The pledge commits companies to responsible forest trade and 100% sustainable timber and wood products by 2020, and we will continue to work with suppliers to develop our Timber Procurement Policy. In Oman, Carillion’s joinery workshop was the first in the country to have Forestry Stewardship Council (FSC) chain of custody certification, providing assurance on responsible sourcing of timber products.

Illegal and unsustainable logging contributes to deforestation and degradation across the world’s most important international forest regions. We will continue to direct concerted efforts at understanding and tracking the sourcing of all our forest and wood products in line with the WWF pledge.”

David Picton, Chief Sustainability Officer, Carillion

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Ethical Supplier Collaboration Award For Carillion Services’ contribution to Nationwide’s supply chain

We are working hard to extend our sustainability values across our supply chain in the Middle East, with a particular focus on the standards we expect in health, safety and welfare for everybody that is working on our contracts. This is a real challenge but one that we are determined to deliver upon.”

Andy Jones, Managing Director, Middle East and North Africa

750 lorry movements and 45t of CO2 saved on the Battersea Power Station Phase 1 contract, by collaborating with our supplier Groundworks to remove waste by barge

Funding Partner for the Supply Chain Sustainability School

51% of supplier spend to local businesses (target: 45%)

3,700 SME suppliers

Carillion plc, Company No. 3782379. Registered Office: Carillion House, 84 Salop Street, Wolverhampton WV3 0SR. Place of Registration: England and Wales

Copyright 2015 Carillion plc

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