GREEN INITIATIVES - 14.04.2011

Are you green enough for BT?

BT has just launched a new procurement policy that places strong green demands on its small and medium sized business suppliers. Is it alone in doing this and how might the evolution of such strategies affect you in the future?

A heavy demand

Keen to show leadership and spread sustainability along the supply chain, the telecoms giant BT has launched one of the most demanding and wide-ranging green procurement policies ever seen in the UK. The company’s Climate Change Procurement Standard applies to all of its suppliers and encourages them to be more energy efficient and adopt sustainable practices (see The next step).

What is expected of suppliers?

The procurement standard includes three minimum expectations that will have to be undertaken by all contracted suppliers. They will need to have a policy in place to address the challenges and risks of climate change; actively measure and report their carbon emissions and other relevant greenhouse gas emissions; and set “challenging” targets to reduce emissions and report on their progress towards these.

Tip. If you want to supply BT in the future, you will have to fill in a Climate Change Questionnaire so the company can assess your engagement on climate change and identify areas where you could improve. There might then be certain stipulations made before any contract is awarded; for example, you may have to set a target to cut your emissions by at least 10% over the next three years.

Beware the axe

BT is keen to point out that its new policy is about working in partnership and helping suppliers to improve their environmental credentials. It has been working with the Carbon Trust, staging a series of free workshops for suppliers ahead of its launch and providing advice on how to comply with the new standards.

Note. BT claims that it won’t ditch suppliers based on their green status - and there certainly won’t be any fines involved. But the new policy clearly contains a threat that those who do not comply will be axed from their preferred supplier list.

Sign of things to come?

We think so. When one of the big boys puts its cards on the table like this, others, including its competitors, are bound to take notice and follow in its footsteps. This is so that they don’t get left behind, or are seen to be “less green”.

Don’t panic

Businesses like BT won’t expect overnight miracles from small supply companies. The expectation will initially be low with no need for big investments in clean technology or anything - as long as you are actively looking at reducing your impacts and improving your energy efficiency.

Tip. If you find yourself faced with demands for carbon footprint figures etc., your best bet is to use one of the free online calculators, such as the one produced by the Carbon Trust (see The next step).

For further information on the BT scheme (EN 05.10.02A) and for a weblink to the Carbon Trust calculator (EN 05.10.02B), visit http://environment.indicator.co.uk.

Although BT is one of the first companies to impose such demands on its suppliers, the indicators are that it certainly won’t be the last. If you’re asked to provide details of carbon footprints etc. it’s worth complying. Failure to do so could see contracts being handed over to those who play (the green) ball.

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