BT is currently working towards a carbon intensity reduction target of 20 per cent by 2010 (a saving of some 200,000 tonnes of CO2), and it’s taking no prisoners – as some of its suppliers have already found to their not inconsiderable cost.
“We recently surveyed 1800 of our suppliers and graded them all on a scale of 0 (those who have no sustainability strategy in place) to 3 (those who are almost there),” Donna Young, head of environment and climate change BT Group, told Procurement Leaders in an exclusive interview. If you’re a zero then you won’t get on the tender list,” she said. “That’s not to say we then abandon them, part of what we’re trying to achieve here is that we work with them to get them started on the road to where we, and they, need to be.
“In terms of our supply base it has been a very positive piece of work, and hopefully we’re now starting to see an appreciation of what they can do within their orgainsation – not just in the products they sell and manufacturer but across their entire supply chain.
“We’re well aware that these suppliers aren’t only working with us, so anything we can do to set them on the road to a more sustainable future benefits everyone. We’ve got companies in all areas of the world that are doing well, we’ve seen some really good practices in China, for example, but generally it depends on the attitude of the individual company and it depends on the industry. Behaviours are the biggest issue right through the value chain.”
When you consider that BT has been involved in £2.2 billion worth of bids in the first ten months of 2008, the cost of neglecting sustainability has never been as high.
BT, which started measuring its carbon footprint in the early 1990’s, long before the majority of its major competitors followed suit, now builds environmental requirements into its procurement contracts as standard practice. And it’s this engagement with suppliers, along with BT’s 110,000 strong workforce that Young identifies as being crucial in the company’s quest to lead the field in an area which, she admitted is still seen elsewhere as a “nice little add on”.
“Sustainability is now on every person’s lips,” Young said. “And it’s certainly very much at the top of the agenda at BT – it’s on the whole board’s mind.
You have to make sure that it’s embedded into the organisation and I believe this is something we’ve been very successful at.”
Another factor occupying the minds of board members at the present time is cost, and in an industry as energy-intensive as BT’s, it’s little wonder that every penny counts.
Young said: “No-one in procurement needs telling that the cost of energy has risen considerably over the past 12 months, which is why it’s so important for us to do all we can to minimise our usage. If we can cut consumption then it obviously does far more than simply reduce our carbon footprint – it makes a lasting contribution to our bottom line.”
BT, like the technology it relies on, has come a long way, and Young appears determined to leave her mark – although you might struggle to see her footprint.
