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Putting responsible purchasing into practice
We are keen to help our businesses and their suppliers to follow responsible CSR practices in purchasing. In 2007 we will launch a revised purchasing intranet site where employees worldwide can access good practice purchasing processes, where CSR is embedded at each stage. Here are some other examples of how we followed responsible purchasing practice in 2006.
In the UK the RAC is the only purchaser in the group to use workwear, but they buy it on a scale that makes purchasing the ideal area to show how we integrate CSR into our supplier relationships. In 2006, RAC purchased over 55,000 garments and shoes through a single supplier who is a member of the Ethical Trading Institute. This supplier sources garments from suppliers that meet ILO standards of labour and workplace health and safety and which are independently audited once every two years. In 2007 it will continue to work with them to look at improvements we can make to the CSR standards of the products.
Workwear
Aviva Canada established a new corporate procurement team that works with business managers to make the most of its vendor relations and its purchasing power. The team promotes responsible supplier management by using the sourcing process to evaluate all vendors for CSR, taking the vendor’s environmental and ethical best practices into account. They have also reduced paper use by introducing electronic ordering.
In Aviva Czech Republic, it increased focus on responsible purchasing through competitive tendering. All capital expenditures over CZK100,000 are subject to competitive tender procedures, unless waived by management, and everyone involved in the tender has to declare that they have no conflicts of interest in the deal. All tenders are documented and archived.
Aviva USA selected Knoll to provide them with new, environmentally responsible office furniture. Knoll has provided Aviva USA with, for example, furniture that is manufactured with greater than 40% recycled material, EPA environmentally preferred product designation and more than 70% of the product materials can be recycled after the product’s life.
In 2006, Aviva Australia discussed environmental or CSR issues with suppliers like building managers, electrician contractors, caterers, paper recyclers, photocopier contractors, architects and cleaning contractors. This has led to new or changed relationships with, for example, a neon tube recycler, SITA Organic Waste Recyclers to take away the companies' organic waste, Corporate Express to supply “Evolve” – a 100% recycled content paper, building managers KnightFrank installing more bike parking racks and ATC supplying remanufactured toner cartridges for printers and faxes.
Commercial Union Lithuania supported its cleaning contractors during their internal pay review to ensure cleaners received adequate pay. It agreed to absorb the additional costs to support the local cleaning industry and help us to hold on to the same team.
Supporting cleaners, pay rises
During 2005 Morley, our fund management business, developed a software programme entitled ‘Business Invoice Viewer’. The application provides real time status updates on all supplier invoices. The system, was released in 2006, and is designed to promote prompt authorisation of invoices and ultimately assist in paying suppliers in accordance with their payment terms.
Supplier’s involvement in community work
Finally, as a group, we like to build on our supplier relationships by engaging them in our CSR activities. In Turkey, Aviva showed this when they included four suppliers in their CSR activities. These suppliers provided free labour, transport and educational materials. In Lithuania we also invited suppliers to take part in various community initiatives and education projects.
In Aviva India, suppliers were encouraged to help raise funds for Goonj, a charity that provides clothing and other basic amenities to remote parts of the country. Suppliers participated in the Hutch half marathon in New Delhi and helped raise Rs102,000 for Goonj.
Suppliers help run for charity
The community directly benefits from Aviva Canada’s choice for Corporate Express as their toner cartridges supplier. Corporate Express donates money to Children’s Miracle Network in the community for every eligible used inkjet cartridge they receive. Also when Aseval’s IT equipment was replaced in Spain, all old material was donated to charity.
