We recognise that there are physical limits to the resources of the Earth (both in terms of generating materials and absorbing wastes), and that any business activity that exceeds such limits is by definition unsustainable in the long term and will need to be reconstituted. Furthermore, there are ethical and social components to sustainable development for which business should be accountable. These extend far beyond legislative compliance.

We commit to regularly assess all material activities and where appropriate respond with a programme of environmental and social improvement. We will look to work with suppliers and partners who can make a positive contribution to our pursuit of sustainable development. Where our review of the standards in place indicates that improvement is necessary, we will agree with the supplier a programme to deliver this and to sustain such developments, or pursue alternative supply arrangements.

In our dealings with suppliers, we will seek to operate to the highest professional standards and pursue mutually beneficial long term relationships. We will establish effective two-way communication, and endeavour to treat suppliers in a fair and reasonable manner.

Ecological Sustainability

Social Responsibility

Delivering Value and Supporting Local Communities

Our Guiding Principles

Ecological Sustainability

We recognise that nature cannot withstand a progressive build-up of waste derived from the earth's crust, nor can it withstand a progressive build-up of society's waste, particularly substances which it cannot degrade into harmless materials. Furthermore, the productive area of nature should not be diminished in terms of quality (diversity) or quantity (volume) and must be enabled to grow.

We will seek to support companies and activities that:

utilise renewable energies and manage resources efficiently;
reduce reliance on minerals (and their by-products) that have a tendency to systematically increase in nature, such as fossil fuels;
reduce reliance on persistent and bio-accumulative substances, particularly those designated as priorities for action;
embrace natural products and services, whilst taking account of Nature’s capacity for renewal;
minimise waste, recycle and practice other forms of sustainable waste management;
recognise and pursue ecological sustainability with real vigour.

Additionally, we will seek to avoid companies and activities that develop genetically modified organisms where there is concern as to:

uncontrolled environmental contamination;
negative impacts on developing countries;
patenting (in particular of indigenous knowledge); or
cloning (in particular, of animals for non-medical purposes).

Social Responsibility

A supplier’s core activities should be compatible with Sound Sourcing criteria2 and the Ethical Policy of The Co-operative Bank.3 These stipulate minimum standards of animal welfare. They also recognise the necessity of treating people in an enlightened fashion and specify the need for business to:

support the principles of the Universal Declaration of Human Rights and avoid association with equipment that is used in the violation of these rights, such as instruments of torture, or the manufacture or transfer of armaments to oppressive regimes;
support the Fundamental International Labour Organisation Conventions and not engage in or support the use of forced labour, and recognise that workers should be free to terminate their employment after a reasonable agreed period of notice4;
not engage in or support the use of child labour, and to provide specific consideration to young persons between the ages of 15 and 18, particularly in respect of their hours of work and safety5;
recognise employees' rights of freedom of association and collective bargaining and their rights to join or form trades unions of their own choosing6;
provide a safe and hygienic working environment7 and ensure that appointed health and safety worker representatives are not subject to discrimination and have reasonable access to those workers who they represent within the workplace;
to provide wages for a standard working week which are consistent with at least the legal or industry minimum standard, whichever is the higher, and which should be sufficient to meet basic worker needs and provide some discretionary income8;
to meet legislation and industry standards pertaining to working hours, whichever afford the better protection, and ensure that employees shall not, on a regular basis, be expected to work for more than 48 hours per week9;
should not discriminate in respect of hiring, compensation, access to training, promotion, termination of employment or retirement based upon race, caste, national origin, religion, age, disability, gender10, marital status, sexual orientation, union membership or political affiliation;
not avoid their obligations under labour or social security laws by unreasonably using devices such as labour only contracting, subcontracting, or home-working arrangements, or through apprenticeship schemes where there is no intention of imparting skills or providing regular employment or the excessive use of fixed-term contracts of employment;
not engage in or threaten physical, sexual or verbal abuse and shall not employ harassment or intimidation of any kind.

Delivering Value and Supporting Local Communities

We will welcome suppliers who operate in the local communities in which our operations are based and who strive to be inclusive of all parts of society. In particular, we will seek to:

support co-operatives and the broad range of organisations involved in the Social Enterprise sector;
attain the highest professional standards in our procurement activities and seek to ensure fairness and consistency of approach in a manner consistent with the Chartered Institute of Purchasing and Supply Code of Business Ethics;11
pay our suppliers on time, according to agreed terms of trade.12

Immediate compliance with all of the principles outlined in this Policy will not always be feasible. For example, conflicts of interest may arise: situations where the pursuit of one principle cuts across the achievement of another. In such instances, we will seek to reach an optimal ‘balance’, providing particular weight to the impact of the product and / or service offered (as opposed to the corporate reputation of the supplier and / or producer) in order to help support the position of progressive products and services in the marketplace.

We will seek to be transparent and accountable in our pursuit of sustainable development; reporting on progress (or the lack of it), securing independent verification and setting clear priorities and targets for all material activities.

1 The most widely used definition of Sustainable Development originates in The Brundtland Report (1987): "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs." It is considered to have social, ethical and environmental components.
2 In some cases, the local conditions, society or political norm may be contrary to the terms of the criteria (for example, in relation to freedom of association in China) and achieving the principles will be difficult. In these cases, corrective actions will aim to improve the conditions, standards and protection afforded to the workforce, aiming ultimately to achieve the equivalent of the requirements.
3 We will afford preference to organisations, products and services that meet fairtrade or similar standards.
4 Nor should workers be required to surrender identity papers or lodge deposits prior to commencing employment other than in circumstances where this is required by law.
5 Such young persons must not work at night or in hazardous conditions.
6 Where such activities are restricted by law, equivalent mechanisms of free association and negotiation should be facilitated as are permitted by the legal framework.
7 Workers should have access to clean toilet facilities and potable water. Where appropriate, there should also be hygienic food storage and any accommodation must be safe and clean, and meet the basic needs of workers. Responsibility for health and safety should be assigned to a senior management representative and training should be provided for employees appropriate to the work which they undertake.
8 Deductions from wages should not be made for disciplinary purposes. Wages should be paid in cash or by cheque in a manner which is acceptable to employees. Any deductions which are not required by national law should not be made without prior agreement of the employee concerned. Workers should be provided with written and understandable information about their employment conditions, particularly in respect of wages (both prior to and during employment). All disciplinary measures should be recorded.
9 Employees should be provided with at least one day off in any seven day period and receive at least two weeks paid leave each year. Overtime (i.e. periods worked in excess of 48 hours per week) should not exceed 12 hours, be voluntary, normally to meet exceptional business circumstances, and be remunerated at a premium rate.
10 Equal opportunities and remuneration should be provided for equivalent jobs to both male and female workers.
11 As detailed in the CFS ‘Code of Business Conduct in the Procurement of Goods and Services’.
12 As a signatory to the better payment practice code, CFS commits to: agree payment terms at the outset of the relationship; explain payment procedures to suppliers; pay bills in accordance with any contracts agreed or as required by law; tell suppliers without delay when an invoice is contested and settle disputes quickly.