Procurement - Policy

Our sustainable procurement policy, which was produced working with Forum for the Future, is for all NWL procurement activities and processes to be carried out in a consistent manner that is fair, open and transparent in line with our published code of conduct.  This will facilitate fairness of treatment between suppliers and also ensure best practise, and ensure that a competitive edge is maintained within the procurement process.

It is our policy to see better environmental and social performance in our supply chain to ensure that all the products and services that we use have taken these issues into account.  This translates differently for different contactors and suppliers, but is based on the following core principles:

• Best value (all procurement must be made on the basis of best value including environmental and social criteria and not simply the lowest price.  All contracts entered into by the company are made on this basis.  The focus is therefore on the needs of the contract, with concentration on an efficient, rather than lowest price, delivery).

• Competition based.

• Legal and Regulatory compliance.

• High standards.

• Ethical trading and respect for people’s quality of life.

• Good environmental performance.

• Performance improvement.

• Transparency and fair application.

NWL has adopted many of the good practices outlined in the British Water Guide to Sustainable Procurement.  This includes the use of key performance indicators, risk management, incentives and whole life costing.  The guide comments that ‘the use of third party vendor databases may reduce the workload of both the purchaser and supplier.  We have taken account of this advice and during the implementation of the AMP4 contracts we have used the Achilles Utilities Vendor Database (UVDB) as a means of providing a single focus point for the collection of supplier prequalification information thereby reducing costs, time and administrative workload of both ourselves and suppliers. This also allows suppliers to demonstrate their capabilities through a single process.  This process places a high emphasis on Safety, Health, Environment and Quality (SHEQ) and it has provided us with an opportunity to assess in detail suppliers capabilities through a single gateway that includes the use of an independent verifier and an on site visit.  We are represented on the System Steering Committees.

All NWL procurement activities will be carried out in accordance with good ethical business practices that create a culture of respect in the way that NWL performs its business and treats its suppliers.  In return we expect our suppliers to be clearly adding value to our business.  Examples of where and how we expect suppliers to add value may include helping us to:

Use of Chemicals

• Eliminate use where possible.

• Recover and re-use (on site whenever possible).

• Reduce volumes.

• Ensure security of supply.

• Introduce innovative partnerships (resulting in alternative chemicals/methods with less risk).

 Energy

• Reduce energy use.

• Promote renewable energy.

• Use energy more efficiently.

• Reduce carbon emissions.

• Use alternative fuels where possible.

• Minimise fuel used in transportation.

 Waste

• Adhere to waste hierarchy: eliminate, reduce, re-use, re-cycle, dispose.

• Work with suppliers on packaging.

• Work with suppliers on reusable materials.
 
Contractors

• Ensure that our core principles are incorporated into the project design phase and that a genuine assessment of these criteria, including social and environmental factors is incorporated into the tender assessment process.

• Solutions for social and environmental challenges will be encouraged from contractors through the tender process and the duration of the contract.

• We will work towards whole life costing for our major capital expenditure projects.