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SPLC 2019 Summit: Sustainable Purchasing 102: Uncovering Policy Alignment and Engaging Internal Stakeholders to Support Your Sustainable Purchasing
- 1. Global Sustainable Procurement Liana Alvarez, Lauren Zimmerman 2019 Energy Center, ExxonMobilHouston Campus Entire campus is certified LEED Gold (Leadership in Energy & Environmental Design)
- 2. Environmental Performance in Supply Chain Human Rights in Supply Chain Supplier Diversity Local Content Sustainability in the Supply Chain Global Sustainable ProcurementAdvocate Network Through the Network we: • Drive awareness and expertise • Expand reach • Improve performance
- 3. Global Sustainable ProcurementAdvocate Network Who • Members from each Category Family • Lead for each Category Family Family • Roles and Responsibilities are are defined • Annual recognition program • Contributions considered in performance evaluation What • Quarterly calls • One-page highlights • Quarterly newsletters • Training • Sharing of success stories • Participation in events • Matchmakers with diverse suppliers How • Category family assessments to to identify opportunities in planned activities • Scorecard and management stewardship • Integration into procurement processes • Sustainability questions repository
- 4. Business Advocate Support network • Participates in quarterly calls • Possesses general understanding of GSP areas of responsibilities • Assists in special initiatives as needed Engage business • Communicates GSP activities to their workgroup • Identifies and champions opportunities in different sustainability areas • Shares success stories with work group,Advocate team, and GSP Engage suppliers • Attends external events as needed • Assists with supplier meetings and engagements Procurement Advocate Support network • Attends quarterly network calls; shares summary with team • Engages GSP; opportunities and issues • Assists in special initiatives as needed Engage suppliers • Advocates for diverse suppliers and sustainability in sourcing strategies and bids • Encourages Primary suppliers to engage diverse suppliers • Attends outreach events and provides coaching to diverse suppliers Measure results • Shares Success Stories (repository) • Assists with scorecard updates • IncludeAdvocate role in performance summary Advocate Roles & Responsibilities
- 5. ThankYou
Editor's Notes
- Hi my name is Liana Alvarez and this is my colleague. I am Lauren Zimmerman. And we both work at ExxonMobil in the Global Sustainable Procurement Group. The GSP group is a small group that supports sustainability processes within the supply chain. Our “Clients” are both operating businesses within ExxonMobil, but more importantly, our own Procurement staff.
- First we want to talk to you a little more about Global Sustainable Procurement. Looking at the right side of the slide, you will see how our Company describes sustainability (governance, environment, and social performance). Our group specifically has four areas of focus: Lauren is primarily focused on environmental performance in the supply chain, I work in the area of human rights in the supply chain, and we have four other colleagues that look after supplier diversity and local content. In the areas of supplier diversity and local content, we have been working at this for decades now but have only come together as a group with focus on all four areas since 2015. Madalyn talked about how sustainable purchasing projects can bring lots of benefits to an organization or company. Because we have such a small group (7 people) supporting procurement operations across the globe, we felt that establishing a network of Advocates was key to driving awareness and expertise, expanding our reach, and improving performance. Our network is the way in which we empower procurement staff to advocate and implement those projects.
- I’ll talk to you about who are the members of our Advocate Network and Lauren will describe to you the “what” and “how”. Who: We have approximately a dozen category families looking after different commodities that ExxonMobil buys such as Transportation & Logistics, Equipment & Materials, Professional services. We work with each Category Family Manager to identify anywhere from 2 – 10 Advocates in their group. We also ask those Category Family Managers to identify a Procurement Lead for purposes of planning and stewardship. We also have some business Line Clients in our Advocate Network who are generally suggested to us by our Procurement colleagues. These are people who have shown to have interest in areas of diversity, environmental performance, etc. Before the end of the presentation, we will share the Roles & Responsibilities for the Advocates. We review our Advocate list annually and also recognize annually Advocates who have gone above and beyond. Advocates can self-nominate or be nominated by others and receive a letter of recognition and gift card for their extraordinary efforts. And now Lauren will talk a little bit more about how we manage and communicate with the Advocate Network. What: So what do we want our Advocates to do? We want our Advocates to know what is going on in sustainable purchasing and how to imbed sustainability considerations into their procurement work. To do that, we communicate this through quarterly calls, through newsletters and one page highlights and we expect them to share those communications with the rest of their team. We also provide training to our Advocates and get feedback from them when we need to provide additional training to the rest of their groups (management and purchasing staff). Now that they know what is going on and are doing it, we want them to actively support GSP in representing ExxonMobil at events and matchmaking with diverse suppliers. Since we’re a small team and can’t be everywhere all the time, we use our Advocates as an extension of our group in these events. To close the loop, we want Advocates to share their successes and to tell us and their fellow Advocates about what they have done that has made a positive impact. How: The how is about the processes and tools that we use to ensure we are actioning and not just talking. First let’s talk about processes. We have a planning process and stewardship process. Annually, we work with our Advocates on identifying upcoming commercial activities by category family where there are sustainability opportunities (for example: can we include more diverse suppliers, are there opportunities for energy savings, are there any human rights impacts associated with a commodity, etc.) Based on those plans, we develop targets and steward results via category family scorecards because what gets measured gets done. Results are shared with both Advocates and Category Family Managers on a quarterly basis. To maximize sustainable outcomes, we recognize it is important that sustainability be integrated into existing procurement practices. Last year, we integrated sustainability milestones into our contract management system and suppliers are now able to update their supplier diversity status directly within their supplier profile. Through the system, Procurement staff are automatically reminded to include diverse suppliers and sustainability considerations in commercial activity when applicable. From this system, we can also extract metrics to feed our scorecards. One tool that we really want to highlight is our sustainability questions repository. We have questions that are applicable to all commodities as well as commodity specific questions. These are questions that we encourage our Procurement staff to include in RFIs and RFPs to gauge the sustainability performance of the suppliers. The questions have been developed by working with our Advocates in the last few years as commercial activity for a specific commodity is scheduled.
- Finally, we want to just leave you with the Advocate Roles & Responsibilities. Once a year, we review them with our Advocate Network. It’s a good refresher to remind Advocates of what expectations are and what they should be doing. When it is time to recognize our Advocates, we look at which Advocates have gone above and beyond in the different areas highlighted here. Thank you.