6 October 2011 | Kathryn Manning
Category: Best contribution to corporate responsibility
Winner: Skanska
Skanska UK has become the leader in ethical and green construction thanks to its relationships with suppliers and stakeholders, transforming a so-called ‘dirty’ industry
Skanska has set the standard in sustainable policy in the past few years. Despite spending more than £1 billion annually with more than 7,000 suppliers, it is now confident in its role as leader by example for the UK construction industry on sustainable issues. Its aim is to become the leading ethical and green project developer and contractor in all its home markets.
Skanska’s sustainable procurement strategy has been gathering momentum since January 2009, when the first draft of its sustainable buying policy was released.
It went through an eight-month development process, which involved significant stakeholder engagement. In early 2010, these policies became part of the company’s terms of engagement with potential suppliers.
Skanska’s engagement with its supply chain, stakeholders and leadership seems to be one of the keys to the success of its strategy.
Skanska impressed judges by providing clear guidance for specifiers, purchasers and its supply chain.
It went further than providing for the usual aspects of economic, environmental and social impacts, to give specific guidance in six key areas of sustainable procurement: supply chain health and safety; ethical sourcing; supply chain equality, diversity and inclusion; environmental and green sourcing; best-value procurement; and supply chain quality management.
Non-compliance of suppliers has been reduced by 35 per cent in just one year, thanks to an intensive audit system. Members of the Skanska procurement team assisted in the development of the new British Standard, a framework for sustainable procurement (BS8903). Skanska also advises the Greater London Authority group on sustainable development and presents its approach at many events.
Its sustainable procurement process has also been assessed by CIPS. It will be the first construction company to have its company-wide procurement processes accredited, as well as being completely BS8903 compliant.
This year, the firm has already been awarded Most Sustainable Company in the UK by the Sunday Times Best Green Companies 2011 – winning first place overall. Category savings have also meant paying over £11 million less to the company’s supply chain in the past two years.
With plans for a further £5-6 million saving in 2011, Skanska’s sustainable approach is clearly paying its way.
☛ Watch the post-award interview here: tinyurl.com/skanskaconstruction
Also on the shortlist
