As we continue to build sustainable value for the ACCA community, Natalya Easton, Sandra Purdie and Lynn Robertson lift the lid on how we’re embedding sustainability principles across our supplier relationships and procurement practices. Plus, they share the significance of sourcing a sustainable exam supplier for the future ACCA Qualification…

How do we manage our supply chain?

Natalya: We start by communicating who we are, how we operate and what we stand for to establish strong foundations with suppliers. By doing this, we aim to attract suppliers who share our commitment to sustainability and ensure that we’re working with organisations that will uphold the standards set out by the UN SDGs (United Nations Sustainable Development Goals) and support our carbon net zero goals.

As part of our plan to progress our journey to carbon net zero, we’re developing action plans and joint commitments with our top 50 suppliers who account for approximately 70% of all our third-party spend. This means we’ll be able to record and track their carbon reduction plans and, ultimately, ensure they’re delivering on their commitments. 

Why is this so important?

Sandra: Our aim is to achieve a near-term (short to medium-term) target of a 50% reduction in emissions by 2030 and a long-term target of net zero emissions by 2045 - which has been verified by the Science Based Targets initiative (SBTi). Our suppliers are an extension of ACCA so we need them to contribute to that journey and help us hit our target.

What’s had the biggest impact on supplier management in recent years?

Natalya: Undoubtedly, it’s been the management of risk in response to external events and a recognition of the value that best practice supplier management can bring. Over the past few years, we’ve implemented several changes to better evaluate the risks of relying on certain suppliers for critical business services. We’ve also incorporated this learning into our training for employees managing suppliers or procuring services to help them assess those risks and develop adaptive strategies for a sustainable supply chain.

In terms of sustainability, we’re developing a holistic approach to supplier management, starting with our code of conduct which sets out rules and guidance around how we engage with our suppliers and the transparency we seek from them. 

Tell us about your involvement in sourcing suppliers for our future qualification.

Sandra: I’m the dedicated sourcing lead for our assessment and supply chain procurement project. This involved running the sourcing and selection of suppliers and supporting our business leads to ensure we followed procurement best practices. 

I was specifically involved with sourcing the full suite of assessment capabilities. This included our exam delivery technology, centre network management and marking. For the first time, our request for proposal (RFP) process included criteria to evaluate the sustainability credentials of our suppliers. They all demonstrated a willingness to engage with the net zero agenda, both in terms of meeting environmental, social and governance (ESG) standards and collaborating with ACCA to support achievement of our net zero target.  

Lynn, how were you involved?

The global business services (GBS) team, has played a key role in shaping ACCA’s net zero strategy, so we were delighted when Sandra approached us to support sourcing ILA suppliers. We developed a set of questions and scoring criteria to evaluate potential suppliers on their approach to net zero and their alignment with ACCA’s strategy. 

How challenging was the evaluation process, given that we’d not done this before?

Lynn: Testing the scoring criteria in a live scenario helped us determine if the questions generated the information we needed. I’m pleased to say that, overall, they worked well, and we’re now embedding ESG decision-making throughout our procurement journey, in line with our supplier code of conduct. 

How will the sustainability elements we’re introducing for the ACCA Qualification influence other projects?

Sandra: We've included sustainability principles and obligations in our contracts with exam delivery suppliers which, over time, will develop into a set of key performance indicators (KPIs) that we can track and measure throughout the contract lifecycle. We're now actively rolling this out more broadly across our sourcing activities, to help influence our sourcing decisions and start to drive real impact.