Purchasing sustainably

We work closely with our suppliers to ensure that they operate according to our supplier Code of Conduct and in line with our sustainability goals.

Why it matters

Working in more than 100 countries, our operations are supported by a global network of suppliers and subcontractors. DNV GL’s vision – ‘global impact for a safe and sustainable future’ – applies as much to our supply chain as it does to our own operations and the services we provide. We work closely with our suppliers to ensure that they operate according to our supplier Code of Conduct and in line with our sustainability goals.

We follow a consistent procurement programme that allows us to monitor our suppliers’ progress towards achieving sustainable operations. We continue to strengthen our approach by installing systematic procurement policies and practices Group-wide.

Progress 2018

In 2018, we continued with sustainable procurement projects initiated in 2017. This included completing a review and update of all relevant governance documents for procurement. All procurement staff were trained in the revised policies and procedures, and new staff attended a two-day training programme on procurement governance. We also completed the installation of software for tracking, monitoring and reporting supplier data.

• Assessing suppliers
  All contracts with new suppliers in 2018 included our supplier Code of Conduct. During the year, selected indirect suppliers in all regions were audited against the code. We completed 12 supplier audits and the results showed no significant infringements. We have scheduled a minimum of 10 further audits for 2019. We also developed a dedicated risk assessment tool for indirect suppliers in 2018 based on our supplier Code of Conduct. The tool screens new suppliers’ risk level and will be rolled out in 2019 as part of our supplier management process.
• Energy use and greenhouse gas emissions

  We continue to focus on reducing energy use and greenhouse gas emissions through procurement. This includes cleaner company cars and renting environmentally-sound offices.

  Company cars

  In 2018, we changed how we manage our global fleet of approximately 1,500 company cars to make the procurement and administration process more efficient. A global fleet management team was set up and, for the first time, a fixed maximum CO2 emission limit was established (120 g/km for passenger cars). We have also added electric and hybrid cars to the list of company cars.

  Green offices 

  Our goal is for all offices with more than 100 employees to have a gold-rated, or equivalent, green building certification by the end of 2024. This means our minimum requirement is the second highest rating by any of the green building standards. Currently, 25% of our offices are in green-certified buildings (BREEAM excellent or LEED gold standard), including offices in Oslo, Houston, London, Singapore, Shanghai and Arnhem, the Netherlands.

   

  Green buildings are estimated to consume 30 to 50% less energy, use 40% less water, emit 30 to 40% less CO2 and produce about 70% less solid waste than standard offices.

• Human rights
  Our supplier Code of Conduct outlines our expectation that suppliers are not complicit in human rights abuses. We have not identified any human rights risks or noncompliance in our supplier audits (see above). We will continue to assess suppliers through our planned audits and new risk assessment tool.

Looking ahead

• Set up a standardized procurement process across DNV GL.
• Improve supplier monitoring and management.
• Ensure that procurement activities comply with DNV GL procurement policies, our sustainability goals and local regulations.

• Assessing suppliers
  We will continue our audit programme for indirect suppliers and have minimum of 10 audits planned for 2019. We will also roll out our new risk assessment tool for indirect suppliers during the year.
• Improving office efficiency
  We are working to reduce vacant office space and ensure that all new office leases comply with our new standard for effective office spaces. The standard aims to improve work place performance, office efficiency and reduce overall energy consumption. Our real estate guidelines specify that effective office spaces should fit modern, practical purposes and increase visibility and connectivity across teams and managers to enable sharing of knowledge and teamwork. Our analysis of office space needs for the future indicates that a total space reduction of 40% is achievable by 2024. The plan will lead to a major reduction in energy use and related CO2 emissions.

Approach

• Global governance, local purchasing
  We procure most products and services locally. However, responsibility for our procurement strategy, policy, processes and tools, as well as global procurement projects, is centralized within our Global Shared Services (GSS) unit.

   

  We divide suppliers into two main groups: Direct suppliers provide services that form part of our service to customers, for example, subcontractors providing technical expertise or conducting management system certifications on our behalf. Indirect suppliers provide goods and services for our overall business activities, such as facilities management, travel, ICT hardware and software, financial services, insurance, and office supplies.

   

  Individual business areas are responsible for direct procurement. Indirect procurement is managed by GSS. Our largest supplier categories by expenditure are subcontractors, office and real estate expenses, ICT, travel and insurance.
• Setting high standards

  Our supplier Code of Conduct outlines our expectations for suppliers. It is aligned with the UN Global Compact’s ten principles on human rights, labour standards, environmental performance and anti-corruption.

  All suppliers are required accept our supplier Code of Conduct and must sign the code or accept it as a mandatory attachment to the contract. Subcontractors must also comply with health, safety and environment requirements and standards that are equivalent to our own. We use checklists to ensure appropriate standards are met by subcontractors in line with the Code of Conduct.

  Further guidelines that promote high standards and support sustainability are provided in management system documents, such as instructions for contracting subcontractors and intermediaries, policy for real-estate management and real-estate leasing guidelines.

• Risk management
  Although our supplier portfolio is mostly service-related and has a low risk of non-compliance, all new indirect suppliers are screened for inherent sustainability risks before we complete the contracting process. We also carry out audits on selected suppliers.

   

  To manage risk and ensure cost savings and transparency, we are working to consolidate suppliers globally and select trustworthy suppliers whose values and service quality meet our requirements.
• Competence development
  We train new employees involved in procurement centrally every year. Training includes general procurement governance and the supplier Code of Conduct.