The midterm conference on 1 February 2008 marked the completion of the first year of the GRI/GTZ Transparency in the Supply Chain Project. Ten out of twelve participating suppliers completed their sustainability reports and six joined their clients, the trainers and GRI representatives at GTZ Headquarters in Eschborn, Germany to discuss the experiences of 2007. It was an opportunity to exchange ideas and a chance for the suppliers to hand a copy of their reports personally to their clients and to look forward to the future.
The two-year project has been divided into two halves, with the first half focusing on training and the creation of reports by the suppliers and the second half focusing on gathering feedback. Lessons learned from the project will be consolidated into a publication to support and promote reporting in the supply chain. The midterm conference was the first opportunity for representatives of all the different types of contributors to the project to share their experiences. The outcomes of the conference will be compiled into a project resource document, a study of supply chain reporting which will be presented at the Amsterdam Global Conference on Transparency and Sustainability in May 2008.
The Multi National Enterprises (MNEs), the clients of the suppliers, did not necessarily expect reports as an outcome of the project and were positively surprised by the number and quality of the reports. The main focus of the MNEs in this project was to convey the relevance of sustainability issues to the suppliers, raise awareness, and get a better insight into their supply chain. They also hoped to see enhanced sustainability management in the suppliers. So far the project has found that reporting has proved to be a catalyst for sustainability management.
Most suppliers said they had no idea what to expect from the project when they started. At the conference they indicated that they had now found their own value in reporting, but it showed that the client/supplier relationship was important in stimulating suppliers to take up reporting. The stimulus by MNEs for suppliers to start reporting proved an important first incentive. However, relatively soon most suppliers came to understand that the practice of understanding CSR and CSR requirements of MNEs and measuring impacts, as well as reporting is something that is beneficial for their own organization beyond what it means for their relationship with their clients and/or MNE partners in this project.
To read about the background of the GRI/GTZ Transparency in the Supply Chain project, go here.
To view some snaps of the project visit the latest GRI Gallery exhibition.
Finally, are you interested in promoting the practice of reporting in your company’s supply chain? If you are, please let me know at plugge@globalreporting.org before 28 April 2008.
Leontien Plugge
SME and Supply Chain Program Manager