Stephen AlexanderSecretary General and COOIMPA

Responsible Supply Chain Management – An industry initiative

IMPA ACT

An industry initiative• A million dollar project – sponsored by maritime

foundations and headed by leading consultancy GLOBAL CSR

• IMPA members - J.Lauritzen and D/S Norden as key players introduce IMPA to project

• Becomes an IMPA initiative late 2011• IMPA establishes multi-stakeholder advisory board• Development of the programme • Launch at IMPA London 2013

Our Objectives

• To create a robust programme for the establishment of Responsible Supply Chain Management (RSCM) practice.

• To fully align to the UN Global Compact and UN Guiding Principles which take account of suppliers’ impacts on Human Rights, the Environment and Anti-Corruption.

• To create an industry standard Supplier Code of Conduct (SCoC) that will benefit the community through standardisation (the first aligned to the UNGPs).

• To create the community tools to share knowledge, information and experience.

An Industry Initiative – An industry acting together!

• Idea based on developing a truly collaborative programme between buyer and supplier.

• A complete management system with a clear and defined programme route.

• Dedicated resource centre created with updated tools, information, training, case studies and background information.

• Where necessary combined leverage can be gained.• Reduced costs for ship owner and supplier through shared

resources/knowledge/experience.• Industry standardisation – One common code for all to follow.• Not just an industry first but a WORLD FIRST.

The Supplier Code of Conduct (SCoC)

• Represents best practice• Aligned to the UNGPs• Human Rights, Environment

and Anti-Corruption• First of its kind known• An industry standard• FREE access post IMPA

London

IMPA ACT consists of:

• The IMPA ACT Tool-Box

• The IMPA ACT on-line Resource Centre

THE SIX STEP PROCESS:-

1. Commit to working with RSCM and commit to live up to the SCoC in your own company.

2. Prepare your engagement with suppliers, look at contracts and begin the dialogue with suppliers.

3. Make choices on suppliers to collaborate with and begin with Self Assessment Survey (SSAS).

4. Partnering process, assessing feedback, establish clear and mutual understanding.

5. Implementation collaboration begins, progress monitored and good practice shared.

6. External audit leading to becoming a registered Responsible Supplier.

A senior management commitment to engage in RSCM.

Acknowledgement that commitment means adopting principles within own company.

Begin learning journey into UNGP’s and UN Global Compact principles.

Consider the issues surrounding Human Rights in business.

Look at resources for 1st stage on IMPA ACT website – get prepared.

Prepare engagement with suppliers.

Select suppliers for receiving the SCoC.

Customise the SCoC for your company – logo etc.

Send out your SCoC and covering letter.

Advise of contract clause.

Prepare business advantages argumentation – IMPA ACT website.

Be prepared for questions from suppliers.

Make your actions known – internally and externally – share with others!

Choose suppliers based on spend, dependency, known risks (sector) and frequency.

Send engagement letter and Supplier Self Assessment Survey.

Liaise with internal CSR personnel (or relevant dept.) investigate for sector, country risk analysis.

Look at IMPA ACT website for background information on sector and country risk analysis.

Answer questions from supplier and agree return of SSAS.

Begin next level engagement with high risk (key) suppliers.

Assessment of SSAS in detail and preparation of response report.

Continue engagement and propose partnership – send partnership letter.

Explore consultative collaboration tool (CCT).

Register partnership plan with IMPA ACT and agree to update progress on the database.

Assist suppliers at every stage with implementation and adoption of the SCoC. Use advisors and CSR specialists inside or outside the organisations.

Follow-up at agreed intervals, make actions plans, work together on addressing issues.

Share best practice and learn from others in the IMPA ACT programme.

Update progress on IMPA ACT database.

Develop close working relationship with suppliers and deeper understanding of their business and their issues.

Communicate progress and activities internally and externally.

Register as being Audit ready!

Prepare and participate in audit.

Use audit results to make improvements.

Succeed and register with IMPA as a certified responsible supplier.

Promote your business and achievements in the industry and to all stakeholders.

THE SIX STEP PROCESS:-

1. Commit to working with RSCM and commit to live up to the SCoC in your own company.

2. Prepare your engagement with suppliers, look at contracts and begin the dialogue with suppliers.

3. Make choices on suppliers to collaborate with and begin with Self Assessment Survey (SSAS).

4. Partnering process, assessing feedback, establish clear and mutual understanding.

5. Implementation collaboration begins, progress monitored and good practice shared.

6. External audit leading to becoming a registered Responsible Supplier.

The business case

• Build on supplier relationships• Save costs through an industry standard• Save time through shared

learning/Knowledge• Meet international expectations• Reputation Management & PR• Purchasing on the board room agenda

Summary – Take action and lead

• Business and Human Rights expectations are here to stay, we need to act now.

• These issues relate to our domain - supply chains.• Here is an initiative that takes the lead.• An opportunity for the industry to lead too.• As a standard it provides many benefits.• Please join us!

Thank you!

Invitation to learn more at www.impa-act.org