Lend Lease | Our Influence Detail
Our Influence
Detail
Contents
- Responding to the United Nations Global Compact
- Researching Our Supply Chain's Environmental Impacts
- Establishing a Global Working Group on Strategic Procurement
- Fair Reward For Our Suppliers
- Recognition of Our Suppliers
- Developing a Supply Chain Accreditation Programme
- Product and Material Selection
We recognise the important role of our supply chain in helping us to achieve our sustainability aspirations and targets.
In line with the commitment in our Environment Policy to interrogate every opportunity to demonstrate a positive impact on the environment in all our activities and developments, as well as those of our supply chain, we will also continue to work with our suppliers to ensure that social and ethical considerations are also met.
Demonstrable compliance with social, ethical and environmental considerations is an integral part of our organisation's evaluation of suppliers.
We expect our suppliers to have human rights policies and records consistent with the requirements of Lend Lease Corporation Global Health and Safety Policy. Lend Lease continues to strive for Incident and Injury Free outcomes on all the projects it is involved in, and with any of the contractors, products and services it procures.
We also expect our suppliers to have an environmental management system that ensures environmental compliance and minimal impact on the environment. The environmental performance of the supplier and the sustainability of its products and services are considered in the selection of suppliers.
We are working with our supply chain in a number of key areas to help us achieve our aspirations and targets.
Responding to the United Nations Global Compact
Our Global Head of Human Resources and our Corporate Counsel have conducted a review of the reporting requirements as a signatory to the Global Compact and have made recommendations.
Currently our Business Units are undertaking a gap and resource needs analysis against the Global Compact Ten Requirements, by December 2008 we aim to be in a position to understand the following:
- Costs to address identified gaps
- Business development implications
- Implications for our supply chain to conform with principles and actions to fill gaps
- Communication requirements for all employees and supply chain
- Ongoing signatory reporting requirements
Researching Our Supply Chain's Environmental Impacts
A key step in working with our supply chain to achieve our Sustainability Aspirations is to understand the scale and extent of environmental impact from the products and materials we use in the design, construction and operation of buildings and assets.
Lend Lease has responded to this challenge by committing to two essential areas of research:
We are using the information gained from this research to understand the environmental impacts (including carbon) associated with key products and materials. From here we, as an organisation, are starting to strategically focus our efforts on sustainable product and material selection.
Establishing a Global Working Group on Strategic Procurement
One of the many challenges in being a global organisation is making sure our sustainability efforts in one Business Unit or country are consistent with another, interacting with our supply chain is no exception.
To address this, we have established a Global Working Group on Strategic Procurement. This Working Group comprises employees from different roles across the business who are involved in sustainability, design and/or procurement. The common goal of the Working Group is to identify and share strategic procurement initiatives, encourage innovation and knowledge sharing across the business.
The greater network created by the Working Group is being used as a foundation for Lend Lease to embark on global Supply Chain and Procurement systems and initiatives.
Fair Reward for Our Suppliers
At Lend Lease, we appreciate the value of the work and services provided by our suppliers and aim to ensure that they are fairly rewarded across our organisation.
As part of our Sustainability Aspirations, we aim to facilitate and support our Finance function with the identification of appropriate processes and indicators to:
- Create reports that track required payment dates and payments made for managers
- Report on actual performance, i.e., percentage of payments made within specified time frames
- Ensure this is part of the Management Reporting Tool work for the Finance function
With the above processes identified, we aim to ensure these are embedded across our business within the Financial Year 2010 Finance Plan.
Recognition of Our Suppliers
Business Excellence Awards recognise outstanding achievements in safety, sustainability, leadership and business performance by not just our employees and projects, but also by our suppliers and project partners.
Regional Award winners are automatically nominated to participate in a Global Awards scheme, as a means to communicate best practice and achievements globally.
This recognition is critical to encouraging a culture of innovation and the replication of best practice, and it highlights the opportunity Lend Lease has to share and learn from our extended supply and partner stakeholders.
Developing a Supply Chain Accreditation Programme
We understand the value of working with our suppliers and industry to raise industry standards, including environmental and social sustainability performance.
Bovis Lend Lease, United Kingdom
A good example of the work we are doing is Bovis Lend Lease (United Kingdom)'s development of the Building Confidence accreditation programme in partnership with Achilles Information Ltd.
The programme is designed to assess the construction industry supply chain in safety, environmental, sustainability, quality, occupational health and financial areas, with the aim of enabling major contractors and clients in the construction industry to:
- Improve supply chain performance
- Get to know their key contractors and suppliers better
- Increase supplier diversity
- Demonstrate corporate social responsibility in the supply chain
- Conform with industry compliance issues
The Building Confidence procurement system is now being successfully implemented in the United Kingdom with other members of the property industry.
Details of the programme can be obtained by clicking
here.
Bovis Lend Lease, Global Alliance
The Bovis Lend Lease Global Alliance business, based in Europe, has recently updated its Contractor and Subcontractor Accreditation Process. It now includes specific requirements with regard to Incident & Injury Free as well as an Environmental questionnaire, reflecting the Alliance's commitment to environmental / sustainability issues as well as health and safety.
The Environmental questionnaire focuses on initiatives such as an environmental management system, awareness of impacts, awareness of legislative requirements, and waste management. There is a minimum pass requirement in order for Contractors to qualify for the next stage in the Process.
The revised Accreditation Process has four steps:
- Health, Safety & Environment Pre-Qualification questionnaire—Used to establish basic Health, Safety & Environment criteria for all contractors. All contractors fill out the questionnaire, and those who satisfy the criteria become part of the pre-selection of initial bids.
- Health, Safety, & Environment Pre-Qualification audit—All contractors who successfully complete the initial questionnaire pre-screening are audited. The audit is designed to determine their Health, Safety & Environment resources and capabilities in accordance with Global Alliance engineering works.
- Health, Safety & Environment Training Seminar—This takes the contractor through all of the relevant Health, Safety & Environment information and performance standards required by the Global Alliance.
- Performance Measurement—Following stages 1 to 3, the contractor will be subject to a programme of periodic audits. These will be undertaken at both the contractors' office/workshop and out on site.
The Accreditation is valid for a two-year period, and it is automatically updated when project managers undertake periodical contractor performance audits.
The Process is also in alignment with the safety needs of our Global Alliance Partner, BP, enabling us to share contractors with BP dealers.
The new Accreditation Process is being introduced to all new contractors, subcontractors and those requiring re-accreditation.
Product and Material Selection
The type and selection of products and materials used on our construction products is also an area where we are focusing our efforts to reduce our environmental footprint.
Our Business Units are currently developing procurement strategies for products and materials assessed against sustainability performance criteria.
Environmental Strategic Procurement Program, Actus
The procurement team for our Lend Lease Communities Business, Actus Lend Lease, has created an Environmental Strategic Procurement Program (ESPP). The program was designed to act as a framework to evaluate the entire procurement process and look for opportunities to:
- Promote the selection of environmentally sustainable products
- Encourage vendors to reduce waste and negative environmental impacts, increase commitment to social sustainability and encourage value engineering to promote economic sustainability
- Centralise the portfolio procurement process to ensure projects use recommended materials and resources to promote environmental and economic sustainability
The program focuses on creating opportunities to incorporate these objectives into the process for selecting new vendors and for establishing national vendor agreements. The team found that these areas offered the greatest leverage for promoting real change in the supply chain.
As part of the Environmental Strategic Procurement Program, vendors are asked to submit documentation on having an environmental strategic plan and sustainability plan in place, being energy star rated, and having a commitment to waste reduction and energy conservation. After this initial review, vendors who meet the requirements are invited to submit a proposal. During the proposal process, a team of evaluators assesses the vendor in two categories: pricing and soft factors. The pricing component represents 70 percent of the vendor's evaluation score, while soft factors represent the remaining 30 percent. Soft factors include: customer service; technical and delivery capabilities; potential contribution to site-specific value engineering initiatives; sustainability programming; risk; documented safety program; and documented diversity and business ethics programs in place. This rating system encourages consideration for long-term value and the sustainability of the product rather than simply the product's price point.
The program has seen great success with partnerships like Sherwin Williams' launch of the ProActus line of low VOC paint, the Actus partnership with Rinnai for tankless water heaters and the MaxLite agreement for compact fluorescent bulbs, to name a few. However, the most successful partnership to date can be seen in Actus' work with Moen to provide low-flow water fixtures and strategies to reduce consumption. Actus started by encouraging the company to reduce packaging waste, by requiring that faucets no longer be distributed in consumer packaging but rather in bulk. This initiative eliminated thousands of boxes, individual sets of instructions, and extra parts, and allowed for additional cost savings to Actus in the product's unit price. The program was so effective that Moen now offers this as an option to other large-scale buyers.
In the company's most recent submission to Actus related to their sustainability efforts, Moen reported the following results:
- Moen recycled more than 13 million pounds of metal
- Moen recycled more than 6.5 million pounds of cardboard
- Moen recycled more than 3.8 million pounds of solid waste
- Moen converted its office practices to include only recycled paper and soy-based inks for copies
The Actus Environmental Strategic Procurement Program has been extremely helpful in "greening" our supply chain, and we look forward to future positive economic, environmental and social impacts.
Elimination of Toxic or Hazardous Materials
Our Bovis Lend Lease Multi-Site business has taken the initiative to survey products and materials currently offered by our key suppliers to target the removal of any toxic, hazardous or harmful substances used by our supply chain.
The survey requires that suppliers examine their materials or products against a list of prohibited materials, undesirable materials and preferred materials. Prohibited materials are materials that have either been banned by legislation in our geographies or are known to be harmful to the environment. Undesirable materials are those that are not banned but are believed by Bovis Lend Lease to be potentially hazardous or environmentally deleterious at one or more stages of their life cycle. Preferred materials are those materials that are considered by Bovis Lend Lease to be preferable due to their restricted environmental impact or environmental desirability.
At this point, the Bovis Lend Lease Multi-Sites business has engaged 35 suppliers (with which we currently hold contracts) in the survey, and has received responses from 16 suppliers for 27 products or materials. The responses received so far are indicating that 7 percent of our supply chain is providing a product containing prohibited materials, 37 percent providing undesirable materials and 30 percent providing preferred materials. Eight-one percent of the products only contain 0–24 percent recycled content, and 44 percent are made up of only 0–24 percent of materials that can be recycled or reused at the end of their life cycle.
Once all surveys have been completed, opportunities for improvement and targets will be identified, including the elimination of prohibited and undesirable materials from the products we use. The findings from the survey will also be shared with the greater Bovis Lend Lease business.
Sustainable Timber Procurement
Timber products are one of the "big four" in terms of construction materials with negative climate change impacts. In order to address this, Bovis Lend Lease UK and Bovis Lend Lease Australia have developed sustainable timber procurement policies.
Bovis Lend Lease UK has had a sustainable timber procurement policy since May 2008.
The policy affirms Bovis Lend Lease's aim of procuring all of the timber used in its construction projects (both temporary and permanent) from sustainable forests so that Bovis Lend Lease has a positive environmental, social and economic impact on the forests and communities involved in the timber trade.
It also makes a commitment to work with stakeholders to:
- Eliminate the use of illegal timber on projects
- Eliminate the use of timber from uncertified high-conservation-value forests on projects
- Increase the proportion of timber from credibly certified sources
Bovis Lend Lease aims to achieve this by only procuring timber that is certified by the Forest Stewardship Council (FSC) with fully documented Chain of Custody to the project or that is adequately documented as coming from recycled sources.
Bovis Lend Lease will only accept timber from other sources if contractors can adequately demonstrate that FSC-certified or recycled timber is either unavailable or that the cost is prohibitive and that the client specification cannot be changed. Contractors must provide documentary evidence before or upon delivery of the above policy.
Every Bovis Lend Lease project team is also trained on how to achieve the requirements of this policy on site, and key supply chain partners are engaged and required to support the policy's implementation.
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