Telstra’s purchasing spend puts us in a unique position to work with our suppliers to positively influence their environmental, social and ethical performance. Our Group Code of Conduct and Supplier Code of Conduct provide a framework for how we manage our relationship with suppliers and contractors. Critical areas include privacy and information security, human rights, fraud and corruption and environmental compliance. We are currently strengthening this approach through a dedicated supplier governance program which will improve our systematic monitoring of risks across each supplier’s lifecycle.
The key principles of our approach to sustainable supply chain management are reflected within our Supplier Code of Conduct, as well as other key procurement policies and processes. The Telstra Supplier Code of Conduct sets out our minimum standards and is modelled on other codes, including the Electronic Industry Citizen Coalition Code of Conduct. We expect suppliers to meet the standards described in our Supplier Code of Conduct and are working with them to achieve this.
Progress in FY17
- In FY17, Telstra Group engaged with approximately 4,500 domestic and 3,300 international suppliers, with our top 100 suppliers comprising 80 per cent of our total spend. Our key areas of spend includes electronic and network equipment (52 per cent) as well as the procurement of services (48 per cent).
- In FY17, we recognised that, to further embed risk management, we need to enhance our enterprise wide approach to governing our suppliers. We are in the process of embedding an approach to consistently manage our risks (including sustainability risks) in our supply chain. Our supplier governance program of work focuses on 12 key risk categories.
- We expanded our engagement with Indigenous business suppliers through our membership with Supply Nation, an organisation that connects Australian corporates and government organisations with Aboriginal and Torres Strait Islander business suppliers. In FY17, we spent $1.1 million with Indigenous enterprises, exceeding our target of $1 million.
- We spend around $2.9 billion each year with approximately 7,300 small business suppliers. This year we implemented a change to our payment terms for Australian small businesses which aims to assist them to better manage their cash flow.