Our 2022 Third Party Performance:
Zero
third-party compliance disclosures were made
95.1%
third-party compliance training completion rate
100%
third-party compliance certification completion rate
Four
third-party accounts were temporarily held until the annual certification was completed
- Third party due diligence
- Third party compliance training
All potential customers and suppliers are screened to ensure that they are not currently on any global sanctions or debarred lists. We also undertake due diligence on our agents, distributors and certain consultants (third-party representatives).
The level of due diligence conducted depends on risk factors such as the nature of the relationship with the third-party representative, territory of operation and business division. We routinely put accounts on hold where there are any compliance related questions or concerns and only release them when the issues are resolved and will terminate contracts for compliance related reasons where necessary.
Supplier Performance
All medium and high risk third-party representatives are required to complete our online Anti-Bribery for Business Partners training course and an annual Anti-Corruption and Code of Conduct online compliance certification. If training or certification is not completed within a specified timeframe, we withhold approval for the appointment of that third-party representative or place their account on hold, meaning no sales orders can be processed, or work commissioned. If training or certification is still not undertaken within a reasonable extension period, the relationship is terminated.
- Evaluating supplier performance
- Improving supplier performance
We have used EcoVadis to assess our key global suppliers since 2016. The platform enables us to rate the relative risk of suppliers against a database of over 130,000 global companies in over 180 countries. Our supplier evaluation process incorporates EcoVadis assessment scores into our purchasing and procurement systems and procedures and it is a requirement for all suppliers meeting agreed spend thresholds.
Throughout 2022, we have continued to promote the EcoVadis platform, with 70% of our global spending now made through suppliers who are in scope of the initiative. At the end of 2022, 305 suppliers had either been assessed or were in the process of completing an assessment.
While we continue to bring new suppliers onboard that meet our criteria, we have also continued to focus on targeting our lowest scoring/higher risk suppliers to help them better understand the output of the evaluation. This process involves liaising directly with both the supplier and EcoVadis to understand and address any identified areas of poor performance. Corrective action plans are then put in place to target improvement in their rating across the four pillars of the platform. Of the 19 accounts identified as higher risk at the start of 2022, nine have since renewed their scorecard with an average 33% improvement on their previous rating. As a result, our average supplier score has now increased from 58 in 2021 to 60.5 in 2022, which remains significantly higher than the EcoVadis average of 45.1.
