The A.P. Moller - Maersk Group has no central procurement system, and 70% of all our purchasing is handled by our individual business units. This has resulted in a very large and fragmented supplier base, with an estimated 200,000 suppliers in total.

Still, as a global conglomerate, we consider ourselves obliged to act responsibly within our sphere of influence. Since standards for labour and environmental protection differ around the world and international standards are not always enforced, it is important that companies monitor the behaviour of their own suppliers.
 
To this end, we are in the process of developing a “Responsible Procurement” programme that will set group-wide standards for ensuring that our suppliers are in alignment with the UN Global Compact as regards working conditions and environmental performance.

In support of business
In today’s economic climate, ensuring a sustainable supply chain is especially challenging, as businesses are focusing heavily on lowering costs to preserve their bottom line. We believe our Responsible Procurement programme will lead to a cost-efficient, lean supplier base that helps us boost efficiency while also promoting responsible business practices among our suppliers. We aim both to manage risk and to create new opportunities through deeper relations with our suppliers.

Cooperating with our suppliers
Our Responsible Procurement programme will include an initial risk segmentation of all suppliers to the group. From this initial segmentation, suppliers will be ranked, allowing us to effectively manage sustainability risks within our supplier base by continuously monitoring performance through defined activities.

Responsible Procurement isn’t about “dropping” suppliers when they perform poorly, but about building the supplier’s capacity and systems for managing sustainability and improving on their social and environmental performance. Through cooperation and training, we aim to build sustainable business relationships that effectively protect and enhance value and grow opportunities in support of business profitability.

The immediate goal is to have an implementation plan ready for global rollout by 2010. This will entail a structured assessment process and a set of enabling tools and governance structures. When implemented, this programme will establish the basic foundation on which the group can document compliance. At a later stage, we will develop indicators and targets, which will be reported on in future sustainability reports.