In pursuit of our business and sustainability goals, one of the most effective tools we have at our disposal is the way SPIE approaches procurement.
The interview with Sophie Macquet, Group Chief Procurement Officer, about the importance of suppliers' emissions in SPIE's green strategy, illustrates this point perfectly.
Sophie, sustainable procurement is set to play an increasing role in operations at SPIE over the coming years. Where do we currently stand and what is planned?
Sophie: As you know, SPIE has ambitious environmental targets: in just two years’ time, we are aiming to have lowered our emissions in line with the 1.5°C limit. This means reducing the greenhouse gasses we generate by 25% (called Scopes 1 & 2) and those generated by our suppliers (Scope 3) by 67%. Procurement is a key lever in reaching both targets, especially in Scope 3.
Why are we weighting our strategy so strongly to suppliers’ emissions?
Sophie: A full 90% of our emissions are generated in Scope 3 – i.e. in the production of components and services we buy in – so there is simply no way that we can set and reach ambitious targets without reducing the carbon footprint of our supply chain. And our procurement activities are an area over which we exert control, too: we can choose to source from suppliers who can support us in reaching our targets.
So will procurement staff be assessing suppliers on their environmental performance?
Sophie: We have already begun doing this. As of today, 33% of our suppliers have CO2 reduction targets: this means that they comply with our own Scope 3 targets. As we move forward, our compliance assessment will become an increasingly important element in our sourcing decisions. When signing or renewing agreements with SPIE, companies will need to demonstrate a credible emissions reduction strategy, and we will be approaching existing suppliers who are non-compliant to help them set targets and develop action plans.
What do suppliers need to do to demonstrate a credible strategy?
Sophie: The first step is for them to calculate their current emissions. Next, they will need to develop an approach to reducing them and secure one of a set list of certifications (SBTI, Ecovadis, ISO 50001). Once they have this, we can list them as compliant – and they become part of our 67% reduction in Scope 3.
What happens if suppliers don’t – or can’t – comply?
Sophie: There will always be suppliers who can’t produce a certified emissions reductions strategy – e.g. because they are too small for this to be reasonable – and we need all of the leeway in Scope 3 to accommodate them. So in the long run, companies who are able to comply, but simply don’t, will lose their business with us: in tenders, our buyers will be prioritising compliant suppliers where appropriate. This is good news for the one third of our existing partners who are already certified – and a clear message to the next third.
How does SPIE reduce its customers' carbon footprint?
To find out more about Scope 1, 2 and 3, watch the video here