Supply chain

We have an ambition to create a diverse and responsible supply chain, be fair and transparent with our suppliers and reach net zero by 2050 across our operational value chain.

NatWest Group Supplier Charter

In 2023, we updated the Supplier Charter to ensure it’s a useful and accessible guide to working as a supplier with NatWest Group. The charter sets out our progress to date and our ask of our suppliers in relation to ethical business conduct, real living wage, prompt payment, human rights and modern slavery, environmental sustainability and diversity, equity and inclusion. We’ve also added new guidance around digital accessibility, included some developments and provided learning opportunities for our suppliers and their wider value chain. The charter plays a key part in any tender or contract renewal process. 

Read our 2023 NatWest Group Supplier Charter (PDF 1.4MB)

2022 Archive NatWest Group Supplier Charter 2022 (PDF 176KB) available here.

Achieving our net zero ambitions together

In 2022, we established a multi-year Supplier Decarbonisation Programme to support the delivery of the 2030 and 2050 carbon reduction ambitions related to our operational value chain. In 2023, the programme completed a pilot with a small sample of suppliers to understand the most effective way to meet NatWest Group’s supply chain decarbonisation goals and embed our climate focus across our supply chain. The pilot enabled us to agree on our engagement approach and communications strategy, as well as achieve a clearer understanding of education requirements for suppliers and colleagues. ​

Measuring the sustainability of our supply chain

We continue to work with EcoVadis to conduct sustainability assessments of our suppliers. As part of the suppliers’ commitment to work with us, we ask that they register on the EcoVadis platform and complete an annual assessment. This provides suppliers with valuable insight into their own company’s strengths and areas of improvement across environmental and social factors. A valid scorecard will be seen favourably at tender and contract renewal.

NatWest Group has 528 suppliers on EcoVadis, scoring an average of 57.6% against the Global EcoVadis average of 45.9%. EcoVadis also conducted the annual sustainability assessment of NatWest Group, scoring 67% (increase from 62% in 2022) which is higher than the global EcoVadis average of 52%. This ranks NatWest Group in the 91st percentile.

During H1 2023 we developed a standardised set of questions to assess sustainability as part of the procurement process. This enables suppliers who are committed to sustainability, but do not use EcoVadis, to be evaluated. In H2 2023, a small pilot to allocate a weighting criteria to sustainability as part of the tender selection process was undertaken. Our ambition is to include a weighting into all tenders by the end of 2024.

Paying our suppliers

Our standard payment terms are 30 days, but we have continued to maintain immediate payment on goods and services on receipt, resulting in average days to pay in H1 as 7 days, and 6 days in H2. We have also asked our suppliers through the Supplier Charter to do the same. This goes significantly beyond our commitment undertaken as a signatory to the Government’s Prompt Payment Code, which requires payment to be made in 60 days. Good Business Pays is a campaign to end late or slow payments to suppliers.

In 2023, NatWest Group was recognised for fast payment throughout our organisation, winning the Fast Payer Award for a third consecutive year. The table on the right shows the average number of days taken to pay invoices by NatWest Group’s key legal entities for 2023. This information was submitted for statutory reporting purposes under Payment Practices and Performance Reporting as required by the UK Government. Data is sourced from internal reporting systems without any manual intervention for statutory reporting.

Find out more about our supply chain on page 45 of our 2023 ESG Disclosures Report.

Related content

Read more about how we seek to promote and respect human rights through the continued implementation of policies and practices covering our colleagues, customers and suppliers.

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Read more about who our key stakeholders are, how we engaged with them, what we discussed and the outcomes. 

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