Services:

• Community engagement
• Project co-creation, implementation, Q&A and reporting
• Coalition building / collective impact facilitation

Partners:

• AUREN
• GTZ, Deutsche Gesellschaft für Technische Zusammenarbeit (German Agency for International Cooperation)
• GRI, Global Reporting Initiative
• Forum Empresa (CSR Net for Américas)
• ILO, International Labour Organization
• GeSI, Global e-Sustainability Initiative
• EICC, Electronic Industry Code of Conduct
• KPMG

Results

• Acknowledged as world best practice by DJSI (Dow Jones Sustainability Index), estabilishing Telefónica and O2 as the most sustainable techonology company in the DJSI global ranking.
• 10% above project objectives for training program delivery, audit, assessments concluded and project implementation.
• More than 50% of ‘potential risk’ suppliers were audited, receiving an improvement plan and a training program.
• High collective impact was reached.
• Engagement strategy and activities contributed to the development of a closer relationship with internal and external stakeholders in a sustainability framework. It was the first time that very different functional areas. worked so closely to enhance sustainability reducing barriers to further inter-departmental cooperation.
• Audits were concentrated mainly in African, Asian, Latino-American and Eastern European providers, where risks were concentrated.

Methodology:

• Maximization of impacts through leveraging the Supply Chain
• Proactive approach: work together with suppliers as partners, identifying risks, delivering training programs and improvement plans to enhance sustainability
• Internal stakeholders engagement

PROJECT OVERVIEW

Context:

This project has a global scope and strong multidisciplinary elements, with cross functional processes in different business sectors.

Companies' impacts are multiplied through their supply chain. Telefónica and O2 groups’ 50,000+ suppliers represent a potential reputational risk that has to be managed. Many companies like Nike, Dell or Apple had reputational crisis because of their suppliers’ labour conditions.

In addition, Telefónica and O2 group's consumer power (almost €26 billion/year), reinforces its capacity to engagement and transform. So, supply chain is a strategic leverage point for sustainability. It is a mechanism to transfer sustainability values and an efficient way to engage other companies and the world in sustainability practices, maximizing impacts.

This project is based on, and 100% compliant with UDHR (Universal Declaration of Human Rights), ILO (International Labour Organization) and environmental standards.

The set up was complex with fragmented internal and external stakeholders, with different goals and KPIs – (key performance indicators) not previously orientated towards sustainability. Following the project, sustainability goals, KPIs and dimensions began to be included in stakeholders’ decision making processes.

Challenges:

• Build a closer relationship with providers, involving more business areas, in order to work together co-creating initiatives to address sustainability issues and enhance collective impact

• Create and direct EAs – multidisciplinary evaluation areas - in all companies from Telefónica & O2 Group

• Create, approve and implement a Sustainability Purchasing Code of Conduct for the whole group

• Create, approve and implement a standard to incentivise people to recruit those with disability internally in Telefónica and O2 group as well as in its suppliers

• Support Telefónica and O2 group SME - small and medium enterprise - suppliers to publish CSR reports

• Incorporate sustainability indicators in procurement processes including UDHR - Universal Declaration of Human Rights - and ILO (International Labour Organization) compliance

• Evaluate Telefónica and O2's group supply chain according to sustainability indicators

• Design the supply chain assessment, incorporate it into procurement processes, implement and engage suppliers

• Direct evaluation processes

• Draw a risk management map related to reputational risks

• Direct supplier auditing and implement a personalized improvement plan in order to empower their sustainability

• Develop and deliver a set of training programs to suppliers to mitigate sustainability risks identified during audit process and with the objective of enhancing their sustainability practices

• Monitoring and reporting of implemented improvements. In order to build opportunities and create greater impact, a best practice report was sent to all providers

• Encourage suppliers to carry out similar action within their own supply chain in order to multiply impacts

• External and internal stakeholder engagement and relationship management due to the cross functional characteristics of the project, requiring a collaborative model between different areas like purchase, logistics environment, CSR, healthcare, ATAM, human resources,

• Contribute to consolidating a group and global integrated culture. In the case of the Colombian branch, this project was the first time they had participated in a global and corporative initiative.