The ADB has increased the amount it spends on services locally in the Philippines © Mark Floro for ADB
The ADB has increased the amount it spends on services locally in the Philippines © Mark Floro for ADB

ADB to 'green' its supply chain

13 June 2018

The Asian Development Bank (ADB) has begun to “green” its supply chain, largely in the Philippines where the bank is headquartered.

In its sustainability report ADB said that in 2016 it sourced $52.2m worth of goods and services in the Philippines, accounting for 80% of institutional procurement expenses. This included $10.3m on goods and $41.9m on services.

Spend in 2017 increased by 18% to $61.7m, due to several ICT initiatives and a refit of part of the Manilla headquarters, made up of $9.5m on goods and $52.2m on services.

ADB said it had committed to ensuring that whenever possible, goods and services conform to the user country’s legal requirements and environmental agreements.

It has also taken steps to maximise the use of durable, reusable, and energy-efficient goods and services and low-pollution goods and services that produce minimal post-consumer waste, use recyclable content, or have minimal impact on the environment.

Among the measures to ensure a responsible supply chain are ensuring contractors and service providers serving ADB headquarters submit a Good Social Management Certificate within 15 calendar days of the effective date of their contract.

Contractors working at ADB headquarters must also ensure employment contracts comply  with Philippine labour legislation.

The bank’s guidelines on energy, environment, and health and safety management seek to require the use of locally available materials and goods certified green by established environmental labelling systems.

However, in 2017 only 2% of the goods procured by ADB headquarters complied with these guidelines – and these were primarily paper products and ICT equipment.

In 2017 ADB introduced a new procurement policy and published new procurement regulations for ADB borrowers.

 Want to stay up to date with the news? Sign up to our daily bulletin.

CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates