As a global business supporting our clients across the world, our suppliers are key partners in achieving our clients’ objectives and are equally a strong focus of our sustainability strategy.
At a strategic level the sustainability of our supply chain is managed by our Group Procurement Director and our Group Sustainability Director. Driving our commitment across the supply chain, each major office has a Procurement Coordinator. Our environmental, social and ethical requirements our communicated to our supply chain through the MCI Supplier Code of Conduct. Compliance to this policy is a core component of our group and local preferred supplier agreements.
Increasingly we are actively searching to collaborate with organisations who also seek to accelerate the development of a sustainable economy. Until now we have focused on managing risk in our highest spend areas (ie. hotels). For 2015 we are evolving our approach to also manage risk in the areas of our business with biggest impacts. All new suppliers should sign the Code of Conduct. In 2014 we have implemented a process to validate and report on this.
Sustainability performance of our suppliers varies significantly around the world and consistency is one of our challenges. The second key challenge is that some providers charge extra for more sustainable products and services. One of the key tasks of our employees is to demonstrate to our partners that sustainability is important to MCI and to challenge them to provide sustainable services and products at parity costs.
Scale of Supply Chain
MCI spent almost 222 million Euros with our supply chain partners in 2013. Our largest category of procurement is hotels which accounts for 46% of total spend
|AV (Incl T/lators)||€ 12,875,909||6%|
|Staging / Decor / Exhibition||€ 9,349,781||4%|
|Print & Design||€ 5,198,708||2%|
|Total Other Categories||€ 31,047,874||14%|
Managing our highest spend category – hotels
In 2013 our Group Procurement team increased the percentage of preferred hotel suppliers which had signed our Code of Conduct to 72% (up from 57% in 2012). This covers approximately 56% of the group spend. The remaining 17% of group hotel suppliers had their own highly advanced sustainability programme, which after in-depth review provided totally acceptable levels of sustainability performance. At time of producing this report we did not have the percentage compliance of local office procured hotels.
Currently we do not audit all of these suppliers for performance against our code of conduct. It is conducted on a random basis. Key risks that have been identified in audits include the management and impacts of: waste, energy, water, chemicals, employees, food and beverage, their supply chain, health and safety, compliance and community engagement.
In 2013 we started to make compliance a core part of our local office contracts. In May, MCI Sustainability Services ran a training course for all MCI procurement officers. For 2014 we are hiring a group procurement manager to support our local supply chain strategies which will ensure that more of our local partners are compliant with our Code of conduct across all spend categories, and that we have better reporting.