As a purpose-led business we foster strong relationships with all our key stakeholders, including our supply chain. By 2022, our ambition is to quantify the impact of all supplier activities through a supplier engagement framework.
NatWest Group Supplier Charter
A key milestone towards our ambition was the launch of the NatWest Group Supplier Charter in September 2020 (replacing our supplier code of conduct). The charter sets out our aims and expectations in the areas of ethical business conduct, human rights, environmental sustainability, diversity and inclusion, the Living Wage and prompt payment. It details what we expect from our suppliers, but also outlines our own commitments in these key areas and the outcomes we aim to achieve by working together.
Our collaboration with EcoVadis
Central to the aims of charter, we partnered with EcoVadis – a leading organisation providing independent, third-party evidence-based assessments of sustainability performance. EcoVadis are helping us to understand and measure our own performance and that of our suppliers against the charter, enabling us to identify social, environmental and ethical improvements. NatWest Group has made significant progress in the first year of working with EcoVadis, with 834 suppliers invited to take part in assessment and 480 rated, representing 88% of its in scope 3rd party spend being independently assessed against ESG credentials.
For more details on the EcoVadis Assessment criteria, please see the ‘Engaging our Suppliers’ section of the 2021 Environmental, Social and Governance (ESG) Supplement (PDF 1.5MB)
Working together, towards common challenges
We collaborate with our suppliers to encourage and enable a diverse supply chain that is not only sustainable but also has a positive impact on the global community. This collaboration also supports the bank’s ambition to halve emissions across our operational value chain by 2030. Below are some examples of how we expect this to happen:
- We expect our suppliers to implement the standards of the charter with their own suppliers.
- The charter (and sustainability) is covered in our tender process, and is a standing agenda point of supplier review meetings conducted as part of ongoing contract management. These meetings are conducted monthly, quarterly or annually dependant on the supplier’s tier classification. They enable us to review supplier performance to ensure compliance with their contract and service-level agreements.
- Supply chain managers are continually trained internally on onboarding and performance management of suppliers, as well as on key ESG topics, such as climate, diversity and inclusion and sustainable procurement to equip them with the knowledge and skills to drive forward supplier discussions and activity.
- Embedding EcoVadis into performance objectives of procurement.
“We are very pleased to be working with NatWest Group, helping them collaborate with suppliers to drive sustainability performance. Significant progress has been made in just one year with 85% of in-scope spend already rated on sustainability topics across environmental, labour & human rights, ethics and sustainable procurement. Their commitment to embed this into business as usual is real with the EcoVadis rating integrated into contract clauses, internal procurement systems and processes and supplier relationship management. Natwest has been a first mover for the FS sector in the UK. We’re proud to be partnering with them to drive meaningful impact at scale”
- Nicola Sherwin, Vice President Customer Success - EcoVadis