We believe that a consistent approach from buyers of information and communications technology (ICT) equipment is necessary to persuade all suppliers that acceptable labour and environmental standards are essential to do business with major companies.
Through our membership of the Global e-Sustainability Initiative (GeSI) Supply Chain Working Group, we are working with major companies, representing a number of different tiers within the ICT supply chain, to develop a common approach to supplier assessments through industry partnerships.
GeSI is collaborating with the Electronic Industry Citizenship Coalition (EICC) bringing a total of over 30 major ICT companies into the initiative. The objective is the development and deployment of a consistent set of tools and processes for improving supply chain CR performance across the ICT sector.
The joint GeSI and EICC initiative has developed and piloted:
- An online Electronics Tool for Accountable Supply Chains (E-TASC) to facilitate a consistent and resource-efficient method of assessing supplier risk and information flow between companies
- A common supplier self-assessment questionnaire
- A common auditing methodology
- Learning and capacity building projects.
E-TASC
The first pilot of E-TASC was launched in July 2007 and includes risk assessment and self-assessment questionnaire tools. E-TASC now has 14 full subscribers and 25 partial subscribers. In 2008/09, over 640 invitations to complete the self-assessment tool will be sent to suppliers. Vodafone business units are trialling the tool to help with supplier assessments and all our suppliers in China are now required to use E-TASC as part of our qualification process. An e-learning tool has been created to promote E-TASC and help suppliers use it more effectively. A joint industry event will be held in June 2008 to provide suppliers with guidance on how to prepare for audits under this programme and to inform them about GeSI and EICC expectations. The event will also be an opportunity for industry members like Vodafone to demonstrate broad customer support for E-TASC and other common industry tools and promote their wider use in ICT sector supply chains.
Supplier self-assessment questionnaire
The questionnaire asks suppliers for information on their labour, health and safety, environmental and ethics policies, and about their systems and performance. Through E-TASC, a supplier can complete this questionnaire just once, and then allow access to all its customers.
A common auditing methodology
This allows a supplier facility to be audited once, as the audited findings are shared with all the customers involved. The second phase of the pilot was completed in 2007/08, and the findings are now being reviewed. EICC and GeSI members in Marketing and Communications, Audit Support and Forecast, Project Management, E-TASC and other relevant roles participate in a newly restructured task force to implement joint auditing as standard practice. The Audit Task Force was restructured in 2007/08 to roll out the work more efficiently. Vodafone participates in the Audit Support group, as part of the Audit Task Force.
Learning and capability building
The joint industry group is also working to build capability among suppliers. Vodafone is participating in the supply chain learning and capability building work group established by the Global e-Sustainability Initiative and the Electronic Industry Citizenship Coalition. A key part of this work in 2007/08 was a collaborative project in China with the Foreign Investment Advisory Service (a joint initiative of the World Bank and the International Finance Corporation) on labour standards. The Project partners include:
- Global e-Sustainability Initiative
- Electronic Industry Code of Conduct Implementation Group
- Business for Social Responsibility
- The Municipal Government of Shenzhen
- Shenzhen Electronics Industry Association
- The Chinese National Government
The aim is to create a capability building strategy for the ICT sector in Shenzhen, China, that addresses the main obstacles to improving CR performance. A pilot project has now been launched to test the strategy and the findings are available on the GeSI website.
Carbon Disclosure Project
Vodafone is participating in the Carbon Disclosure Project (CDP) Supply Chain Leadership Collaboration. Participating companies will use the CDP system to collect data on emissions from their suppliers, enabling them to measure and subsequently manage emissions through the supply chain.
"The Carbon Disclosure Project (CDP) is delighted that Vodafone has joined the Supply Chain Leadership Collaboration and will be engaging with its key suppliers on their carbon management strategies to reduce emissions. CDP recognises that Vodafone is setting a great example in supply chain engagement and carbon disclosure."