Responsible procurement

Last year, a new Strategic Sourcing and Sustainability Policy was developed for the Group. It created a focus on sustainability throughout the procurement process, examining whole-life cost analysis, as well as environmental, social and governance criteria in the selection of suppliers. Key contracts include risk assessments against sustainability criteria. Where appropriate, management actions and improvement targets are set.

Friends Life is an active member of the Financial Services Purchasing Forum, which is affiliated to the Chartered Institute of Purchasing and Supply. The Group focuses on responsible supply chain management, including improving the sustainability of suppliers’ products and services.

During 2010, Forum for the Future carried out research to understand the risks associated with climate change for the business, investors and suppliers. They then used the research to deliver a training day to relevant senior managers.