How do you integrate sustainability and social responsibility into your supplier management in construction?

1 Choose suppliers with clear policies and standards

The first step in integrating sustainability and social responsibility into your supplier management is to choose suppliers that have clear and transparent policies and standards on environmental, social, and governance (ESG) issues. You can use tools such as the ISO 20400 standard for sustainable procurement, the Global Reporting Initiative (GRI) framework for sustainability reporting, or the UN Global Compact principles for human rights, labor, environment, and anti-corruption to assess and compare potential suppliers. You can also ask them to provide evidence of their ESG performance, such as certifications, audits, awards, or ratings.

2 Establish mutual expectations and objectives

The next step is to establish mutual expectations and objectives with your suppliers, based on your project requirements and ESG goals. You can use contracts, agreements, codes of conduct, or scorecards to define and communicate these expectations and objectives, and to specify the roles and responsibilities of each party. You can also include incentives or penalties for meeting or failing to meet the agreed standards and targets. For example, you can offer discounts, bonuses, or preferential treatment for suppliers that demonstrate high ESG performance, or impose fines, sanctions, or termination for suppliers that violate ESG policies or regulations.

3 Monitor and evaluate supplier performance and impact

The third step is to monitor and evaluate your supplier performance and impact on a regular basis, using quantitative and qualitative indicators and methods. You can use tools such as key performance indicators (KPIs), audits, surveys, feedback, or reporting systems to measure and track your supplier ESG performance and impact, and to identify any gaps, risks, or opportunities for improvement. You can also use benchmarks, standards, or best practices to compare your supplier ESG performance and impact with industry norms or expectations. For example, you can use the Construction Industry Institute (CII) best practices for sustainable construction, or the Green Building Council (GBC) rating systems for green buildings.

4 Provide feedback and support for supplier improvement

The fourth step is to provide feedback and support for your supplier improvement, based on the results of your monitoring and evaluation. You can use tools such as reviews, meetings, workshops, or training sessions to share and discuss your findings and recommendations with your suppliers, and to encourage and assist them in implementing corrective or preventive actions. You can also use tools such as recognition, awards, or testimonials to acknowledge and appreciate your supplier achievements and contributions. For example, you can use the CIPS Sustainability Index (CSI) to recognize and promote your supplier sustainability performance, or the Responsible Business Alliance (RBA) Code of Conduct to support your supplier social responsibility improvement.

5 Collaborate and innovate with suppliers for ESG solutions

The fifth step is to collaborate and innovate with your suppliers for ESG solutions, based on your mutual interests and objectives. You can use tools such as partnerships, alliances, networks, or platforms to foster and facilitate collaboration and innovation with your suppliers, and to leverage their expertise, resources, or networks for ESG solutions. You can also use tools such as co-creation, co-design, or co-delivery to involve your suppliers in the development and implementation of ESG solutions, and to share the benefits and risks of ESG innovation. For example, you can use the World Business Council for Sustainable Development (WBCSD) Sustainable Building Materials project to collaborate and innovate with your suppliers for low-carbon building materials.

6 Review and revise your supplier management strategy

The sixth step is to review and revise your supplier management strategy, based on your experience and feedback. You can use tools such as surveys, interviews, focus groups, or case studies to collect and analyze your experience and feedback on your supplier management strategy, and to identify any strengths, weaknesses, opportunities, or threats for your ESG performance and impact. You can also use tools such as SWOT analysis, gap analysis, or scenario planning to review and revise your supplier management strategy, and to align it with your changing project needs and ESG goals. For example, you can use the ISO 26000 guidance on social responsibility to review and revise your supplier management strategy for social responsibility.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?