Case study: How WSP promotes sustainability among its suppliers
As one of the world’s leading professional services firms, WSP provides engineering and design services to clients in the Transportation & Infrastructure, Property & Buildings, Earth & Environment, Power & Energy, Resources and Industry sectors, as well as offering strategic advisory services. WSP is committed to finding sustainable solutions to the challenges the future will bring, and it is important that its suppliers do the same. Tweet This!
This case study is based on the 2020 Global ESG Report by WSP, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Working with approximately 40,000 suppliers around the globe, WSP seeks to incorporate corporate social responsibility factors into the selection and onboarding process, so as to effectively promote sustainability across its supply chain. In order to promote sustainability among its suppliers WSP took action to:
- implement a Third Party Code of Conduct
- promote environmental sustainability
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With this case study you will see:
- Which are the most important impacts (material issues) WSP has identified;
- How WSP proceeded with stakeholder engagement, and
- What actions were taken by WSP to promote sustainability among its suppliers
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What are the material issues the company has identified?
In its 2020 Global ESG Report WSP identified a range of material issues, such as ethical business practices, occupational health and safety, environmental compliance, diversity and equal opportunity. Among these, promoting sustainability among its suppliers stands out as a key material issue for WSP.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups WSP engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Employee surveys · Townhall meetings · Information cascaded from leadership, via team meetings · Global internal communications (intranet, emails, newsletters) and local intranets · Annual Report · ESG Report · Leadership interviews · Social media campaigns for World Observance Days |
| Investors and analysts
| · Investor relations activities including: investor days, meetings, roadshows, conferences, discussion with senior executives and market sector experts, conference calls · Website postings · Financial reports · Press releases and media relations · Annual Information Form · Annual Report · ESG Report · Annual Meeting of Shareholders · Site visits to explain WSP’s project work |
| Clients
| · Project communications · Project feedback received from clients · Client interviews · Thought leadership communications · Workshops and panels during events |
| Business partners, including subcontractors, joint ventures and consortiums | · Project communications
|
| Suppliers | · Procurement process · Questionnaires in onboarding process · Engaging with major suppliers on carbon footprint of goods and services |
| Governments, including regulatory authorities | · Project communications involving government agencies
|
| Industry bodies | · Participation on key industry association committees · Attendance at industry functions · Sponsorship of industry events and research · Trade show displays · Thought leadership |
| Local communities
| · Consultation on behalf of clients within projects · Local community involvement/charity work · Sponsorship and donations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics WSP engaged with both internal and external stakeholders through questionnaires and individual conversations. External stakeholders included investors and clients, while internal stakeholders included employees, regional sustainability leaders and corporate function leaders overseeing areas related to WSP’s environmental, social and governance impacts.
What actions were taken by WSP to promote sustainability among its suppliers?
In its 2020 Global ESG Report WSP reports that it took the following actions for promoting sustainability among its suppliers:
- Implementing a Third Party Code of Conduct
- WSP’s Third Party Code of Conduct summarises WSP’s values as they apply to third parties, by providing a set of governing principles for ethical behaviour when interacting with WSP or on its behalf. Through existing processes and WSP’s new third-party supplier vetting system, third parties are required to certify their agreement to WSP’s Third Party Code of Conduct and respond to a questionnaire which includes mandatory sustainability questions. The process classifies third parties according to Ethics and Compliance risk factors, while also gathering data on other factors such as financials, health and safety, quality credentials and sustainability. Once vetted, WSP carries out ongoing monitoring, and the third parties undergo periodic re-qualification.
- Promoting environmental sustainability
- Corporate sustainability is one of WSP’s procurement guiding principles. WSP’s global Request for Proposals template includes questions for larger suppliers on whether they have a sustainability policy or plan. WSP’s regions enhance these checks through their regional procedures, including risk classifications and verification of certifications. In regions where the supplier vetting system has been implemented, all suppliers are required to answer sustainability questions. WSP seeks to work with vendors who provide sustainable products and services and has agreements in place with key suppliers to provide energy efficient equipment, recycled paper and recycling services for electronic equipment. To support its scope 3 GHG emissions reduction target, WSP also plans to develop an action plan to further engage with its major suppliers to reduce emissions associated with purchased goods and services.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-1 New suppliers that were screened using environmental criteria
2) Disclosure 414-1 New suppliers that were screened using social criteria
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
This case study is based on published information by WSP, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.wsp.com/en-GL/investors/reports-and-filings/esg-report
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