Suppliers working for Scottish and Southern Electricity Networks (SSEN) Distribution must comply with sustainability targets set out by the company.
SSEN said its “sustainable supplier code” will help it reach its net zero ambitions.
The supplier code has 11 targeted metrics which aim to forge stronger supplier relationships, enhance innovation and improve the management of shared risks and opportunities.
SSEN explained that during engagement sessions for its RIIO-ED2 business plan, its supply chain stakeholders told the network operator that while they have net zero ambitions and want to collaborate, they may need help in order to do so.
“Our supply chain is instrumental in meeting our RIIO-ED2 net zero ambitions and our sustainable supplier code, through its 11 targeted metrics, will ensure suppliers are helping us on our net zero journey whilst also gaining knowledge and improving sustainability through their own business,” SSEN said.
Among the code’s metrics include that by 2025, 50% of the supply chain by spend will have a strategy and associated reporting in place to reduce energy consumption; and will have committed to their own annual reduction targets that they work towards and report on.
Furthermore 60% of the supply chain by spend will have strategies in place to reduce water consumption for SSEN projects, with reporting to demonstrate that improvements are measured.
SSEN’s aim is to have 80% of its supply chain signed up to the code by the end of RIIO-ED2 in 2028.
Rebecca Richardson, director of procurement distribution for SSEN, said: “In line with the UK’s transition to a net zero economy, and SSEN’s sustainability strategy, our sustainable supplier code is a progressive approach to out-perform our RIIO-ED2 and supply chain targets.
“Recognising that SSEN’s sustainability and environmental performance during RIIO-ED2 has a high dependency on achieving a sustainable supply chain, we have been overwhelmed with their appetite to drive sustainability.
“Our sustainable supplier code is a great opportunity for developing strong collaborative working between SSEN and all of our supplier chain to enable the fundamental focus required to achieve all net zero ambitions.”