We aim to do business with suppliers that protect the environment and meet high standards on employment practices. We are committed to managing sustainability risks in our supply chain, both for ourselves and for our clients. We also look for opportunities to increase the proportion of environmentally-preferable products and services we buy and/or reduce demand. For more information see sustainable sourcing
At a Group level we focus our sustainability efforts on WPP preferred suppliers that provide goods and services to our companies such as IT, travel, telecommunications, professional services (e.g. consultancy and recruitment) and facilities management. These represent half of our external spend and many contracts are negotiated centrally by WPP.
We have implemented a spend analytics system that enables us to monitor over 60% of external procurement across our nine largest markets. This provides greater visibility of spend with individual suppliers, enabling us to reduce costs, consolidate our supply base and better integrate sustainability.
Selecting preferred suppliers
We evaluate all potential new suppliers against a set of business requirements before they can become a WPP supplier. These include assurance of supply, quality, service, cost, innovation and sustainability. Our sustainability criteria cover six areas: policy, senior responsibility, materiality and issues identification, reporting, supply chain and anti-bribery and corruption.
Once selected, all our business partners and suppliers are asked to sign a copy of the WPP Code of Business Conduct to confirm they will abide by its principles. These include requirements relating to labour practices (such as wages, anti-harassment and discrimination and health and safety), human rights (including no child, forced or bonded labour), social impacts (such as anti-bribery and corruption) as well as other sustainability criteria.
Monitoring and awareness
Managing sustainability in our supply chain is the responsibility of our global Procurement Leadership Team (PLT). Sustainability is included in the personal objectives for all PLT members. The PLT communicates our sustainability requirements to local Group and operating company procurement teams. We raise awareness through quarterly reporting and our regular cross-Group sourcing team activities and newsletters.