Working with sustainable suppliers
When selecting products and services KPN was already taking into account the degree to which suppliers observed the standards laid down for waste disposal, use of hazardous raw materials and packaging. In 2008, we will also examine whether suppliers respect requirements for human rights and working conditions and whether they use means of production that impact the environment as little as possible. This means that we will devote greater attention to supply chain management.
Towards a Code of Conduct for Suppliers in 2008
KPN drew up its Supplier Code of Conduct in 2007 and will discuss the code in 2008 with a number of suppliers. These talks may result in adjustments to the code. In 2008, KPN wants to introduce the standards contained in the definitive code in its procurement procedures, including the selection of suppliers.
KPN is going to inform its most important suppliers of the Code of Conduct and will ask them to sign it. In our annual evaluation of our relationships with suppliers, we will expressly keep a watch on sustainability aspects. From 2009 it will then be possible to keep track of developments in our relationships with suppliers from year to year. Where possible, KPN will only conclude or renew contracts with suppliers that endorse the KPN Code of Conduct.
Supply Chain Management
Good supply chain management and a reduction of the number of suppliers go hand-in-hand. The purpose of supply chain management is to plan and control the entire process of supplying raw materials and parts as efficiently as possible. A shorter supply chain enhances KPN's performance and will make KPN a more reliable customer for suppliers. Value-based procurement and supply chain management reinforce each other. Global procurement has mushroomed within KPN over the past two years. To support worldwide procurement KPN has contracted a high-quality partner with more than 50 years experience in the Asia-Pacific region. This company will support us in selecting and managing suppliers and developing our Asian supplier base. Our new partner has a good reputation when it comes to corporate social responsibility and KPN will adopt its high standards for selecting suppliers.
Assessing service providers on sustainability
KPN assesses its suppliers on their consumption of energy. In 2008, we will require suppliers
to state in their offers the energy consumption of the product they wish to sell to us and the measures they have taken to reduce energy consumption during usage.
To be able to exert even greater influence over suppliers, KPN is drawing up specifications together with its international colleagues (among others, those affiliated to ETNO). The specifications will address such matters as building into telecommunications equipment the low-power mode already used in almost all ICT hardware
Less paper for invoices
KPN reduced its paper consumption in the Netherlands by 12% in 2007 compared with the year before. Significant reductions occurred in the quantity of paper used for copying, invoicing and leaflets.
Since November 2006 we have been printing all our invoices double-sided and in 2007 we increased the digitization of invoices still further. These developments have produced a 37% reduction in the paper consumed for invoicing. In 2008, KPN will switch to FSC paper for its various invoicing streams.