Working to combat climate change, the initiative will ‘help develop a shared mindset’ between the insurer and its supplier partners
Allianz Insurance has launched a sustainable procurement charter, with the aim of encouraging its suppliers to adopt and develop environmental, social and governance (ESG) practices.
The charter is designed for suppliers that have a contractual relationship with the insurer in the UK and have a spend profile of more than £20,000. Allianz hopes the charter will act as guidance for internal buyers and suppliers.
As a way of prioritising suppliers that have embedded sustainable and ethical practices within their organisation, Allianz will apply a minimum weighting of 10% to ESG factors for future tender assessments.
The insurer will also provide support and education to suppliers that are invested in ESG – the insurer wants to partner with suppliers which understand the nature of the material, products and services they’re providing.
Allianz also wants its supplier partners to appreciate the importance of protecting the environment alongside fostering good relations with employees and local communities.
Oleh Melnyk, head of procurement and property at Allianz Insurance, said: “We need to act against climate change and we can’t act alone - we need to involve our supplier partners.
“This charter will help develop a shared mindset with them, creating a fairer and more transparent environment.
“We want to be market leaders in sustainable procurement - that’s part of our ESG ambitions.”
Steps of action
Between 2010 and 2020, Allianz cut its waste by 89%, CO2 emissions by 79%, paper consumption by 61% and its water consumption by 29%.
The ESG practices Allianz suggests suppliers implement in line with the charter include*:
- Environmental commitments – reducing carbon emissions, recycling waste, using renewable energy and considering biodiversity elements for premises.
- Social targets – paying all employees the national living wage, reducing pay gaps and providing fair opportunities to everyone.
- Governance goals – setting whistleblowing mechanisms into business practices to ensure all tendering activities are open and transparent.
*Although encouraged, the targets are not binding.