(1.8 points)
Intent
This indicator describes the management practices and requirements the entity uses to manage supply chain risks. The procurement process is an effective way to integrate the entity’s sustainability-specific requirements into their supply chain. This indicator applies to existing and new contracts.
Requirements
Select Yes or No: If selecting Yes, select applicable sub-options.
Does the entity include ESG specific requirements in procurement processes?
- Yes
- Select elements of the supply chain engagement program (multiple answers possible)
- Developing or applying ESG policies
- Planning and preparation for engagement
- Development of action plan
- Implementation of engagement plan
- Training
- Program review and evaluation
- Feedback sessions with stakeholders
- Select all issues covered by procurement processes (multiple answers possible)
- Business ethics
- Child labor
- Environmental process standards
- Human rights
- Human health-based product standards
- Occupational health and safety
- Labor standards and working conditions
- Other: ____________
- Select the external parties to whom the requirements apply (multiple answers possible)
- Contractors
- Operators
- Suppliers
- Supply chain (beyond tier 1 suppliers and contractors)
- Other: ____________
- Select elements of the supply chain engagement program (multiple answers possible)
- No
- Provide additional context for the answer provided (not validated, for reporting purposes only)
________________________
- Provide additional context for the answer provided (not validated, for reporting purposes only)
2020 changes: Added a section on ‘elements of the supply chain engagement program’ which replaces the former SE6 indicator.
Validation
- Other: State the other issue included in requirements, and/or;
- Other: State the other external party to whom the requirements apply to. It is possible to report multiple other answers for the above sub-options.
See Appendix 4 of the reference guide for additional information about GRESB Validation.
Scoring
This indicator is scored as a One Section Indicator. Evidence is not required. Fractional points are awarded based on the selections of:
- Supply chain engagement program elements.
- Issues covered by the procurement process.
- External parties to whom the program applies to.
Other: Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score.
Diminishing Increase in Score approach: As indicated by the blue line, some elements of this indicator are scored based on a Diminishing Increase in Score approach, per additional checkbox selected.
Terminology
Action plan: A detailed plan outlining actions needed to enhance tenant satisfaction. An action plan has three major elements (1) Specific tasks: what will be done and by whom; (2) Time horizon: when will it be done; (3) Resource allocation: what specific funds are available for specific activities.
Business ethics: Basic moral and legal principles used to address issues such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities.
Child labor: Work that deprives children of their childhood, their potential and their dignity, and that is harmful to their physical or mental development including by interfering with their education. Specifically, it means types of work that are not permitted for children below the relevant minimum age.
Environmental process standards: Minimum standards required during the procurement process in relation to environmental processes, such as requirements for disposal of waste generated by contractors.
Environmental product standards: Minimum standards required during the procurement process in relation to environmental products, such as requiring a certain percentage of products to be locally sourced or contain recycled content.
ESG-specific requirements:Includes specification and use of sustainable and energy efficient materials, systems, equipment and onsite operating practices that relate to ESG issues.
Health and safety - employees: The health and safety of employees responsible for the entity.
Employee health & well-being: The health & well-being of employees responsible for the entity.
Human health-based product standards: Minimum standards for the health-related attributes of products, such as lists of prohibited chemicals.
Human rights: Human rights are rights inherent to all human beings, whatever their nationality, place of residence, sex, national or ethnic origin, colour, religion, language or any other status.
Suppliers: Organizations or persons in the supply chain that provide a product or service used during the reporting year.
References
GRI Standards 2016 - 204: Procurement Practices
GRI Standards 2016 - 308: Supplier Environmental Assessment
GRI Standards 2016 - 414: Supplier Social Assessment
DJSI CSA 2019 - 3.6.1 Supplier Code of Conduct
DJSI CSA 2019 - 3.6.3 Risk Exposure
DJSI CSA 2019 - 3.6.5 ESG Integration in Supply Chain Management Strategy
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