none

SUPPLY CHAIN

We increasingly recognise not only the positive impacts suppliers can bring to our sustainability efforts, in terms of knowledge and best practice, but also the potential negative impacts.

Objectives
  • To engage with our suppliers to share best practice and to procure sustainable goods and services
Performance against targets

  • 17%

    Achieved

  • 41%

    In progress

  • 42%

    Not achieved

Performance against targets

While we have engaged with our suppliers informally for a number of years on sustainability issues, in particular working with our construction contractors and architects to identify improvements to schemes or construction methods, Hammerson has not, until now, had a formal supplier engagement programme.

MDIn 2009 this changed, as we introduced a trial sustainability questionnaire. Initially testing the questionnaire on 16 suppliers, we will roll it out to all UK suppliers in 2010. Suppliers receive a score according to responses: by the end of three years, they must have shown year-on-year improvements, and met a minimum score in order to work with us. We are offering suppliers assistance to help them achieve this level.

The reason for our increased focus on the supply chain is that we increasingly recognise not only the positive impacts suppliers can bring to our sustainability efforts, in terms of knowledge and best practice, but also the potential negative impacts. A supplier’s poor practices potentially damage the long-term sustainability performance of a scheme. Equally, with an increasing focus by regulatory authorities on enforcement of environmental legislation for construction activities, it is clear that supplier engagement reduces our operational and financial risk on large development projects.

Nevertheless, many of the UK supply chain targets set for 2009 were not achieved during the year. Hammerson has had a responsible procurement policy in the UK since 2007, and in 2009 aimed to review our procedures for the procurement of key impact suppliers. However, we did not complete this review during the year. In France, where activities were not previously covered by a responsible procurement policy, we have completed our review and put the procedures in place in time for the contractor selection process for the redevelopment of 54-60 rue du Faubourg Saint-Honoré.

We continue to target best practice on our construction sites and data reporting. Specifically, the GRI CRESS working group is developing guidance for the property sector with regards to performance indicators EN19 and EN20 and we are keen to take on board these recommendations.

none