TRANSFORMATION PROGRAM FOR A BANKING GROUP
The international banking group consists of around 40 regional banks and subsidiaries. Whilst each entity has its own procurement teams, a Central Procurement Unit was created to implement common processes, category plans and contracts as well as foster best practices within the group.
The group has been implementing a corporate social responsibility (CSR) program for a few years. It is supported by the senior leadership and now well accepted by the staff. However, a report from a major rating agency showed that there was no visibility on how it was implemented in the supply chain, which triggered the need for Sustainable Procurement expert advice.
Our first task was to conduct a diagnostic of the group: what are the major risks and opportunities of the spend portfolio, what are the key concerns of internal clients, how do the 40 regional procurement teams manage them and how do the suppliers perform in these fields. When presenting the results at the group’s annual procurement conference, we focused on highlighting ‘best practices’ and showing that many banks had already been implementing ‘Sustainable Procurement’ without recognising it.
Our second task was to build the group strategy and align processes, systems, training and reporting to sustainability needs. Our focus was on integrating sustainability into the existing framework and only created new documents and tools where gaps needed to be filled, e.g. a TCO assessment tool, an ecolabel guide and internal case studies.
The Sustainable Procurement approach is now firmly embedded within the bank and part of ‘business as usual' operations. Each procurement team selects sustainability objectives that are relevant to their needs and reports back annually to the Central Procurement Unit. The procurement function is now aligned to the group’s CSR program and an active contributor in that field.