Allianz has launched a new sustainable procurement charter in a bid to encourage its suppliers to “adopt and develop sound Environmental, Social and Governance (ESG) practices”.
It will now apply a minimum weighting of 10% to ESG factors for future tender assessments, which will reportedly prioritise suppliers who have “embedded sustainable and ethical practices within their organisation”.
The group added that it wants to partner with suppliers who “understand the nature of the materials, products and services they’re providing and the importance of protecting the environment and fostering good relations with their employees and their local communities”.
The latest move comes as Allianz has “significantly” reduced the environmental impact of its operations in the UK. Between 2010 and 2020, for example, it cut its waste by 89%, its CO2 emissions by 79%, its paper consumption by 61% and its water consumption by 29%.
It noted that the sustainable procurement charter is designed for suppliers who have a contractual relationship with Allianz in the UK and have a spend profile of more than £20,000.
With this charter, Allianz said it aims to encourage suppliers to reduce carbon emissions, recycle waste, use renewable energy and consider biodiversity elements for their premises.
In addition, it has encouraged suppliers to “set themselves social targets”, such as paying all employees the national living wage, reducing pay gaps and providing fair opportunities to everyone.
It has also urged them to “set whistleblowing mechanisms” into their business practices and to ensure all tendering activities are “open and transparent”.
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.”