EDF consolidates vendors as part of ethical target

17 August 2010

17 August 2010 | Angeline Albert

EDF Energy has shed 15,000 suppliers in the past two years and is considering reducing numbers by a further 1,500.

Greg Brown, procurement manager for systems and controlling at the French gas and electricity provider, told SM: “We had 20,000 suppliers two years ago and we have reduced that to 5,000 suppliers today. We could reduce this further to 3,500 suppliers.”

He said the procurement department was “going through a period of reorganisation”. He added: “We are moving to category management which could involve reducing the supplier database. The company is also reviewing ownership of distribution within the UK and if we sell that business [EDF Networks] this will also reduce supplier numbers.”       

Having fewer vendors will make it easier for EDF to achieve its target to have an ethical supply chain by 2012. In its Performance report 2009 out this month, EDF says it will achieve its goal by ensuring all its suppliers meet the 10 principles of the UN Global Compact relating to human rights, labour, the environment and anti-corruption.

EDF will rank its suppliers from high to low risk for compliance with the Compact, and develop action plans for high-risk vendors.

Other measures highlighted in the report include recycling at all depots so that no office waste is sent to landfill by 2020, and reducing the volume of landfill by 50 per cent by 2012.   

EDF also plans to cut carbon created from electricity production by 60 per cent by 2020, and reduce transport emissions by 20 per cent by 2012.

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