Suppliers Deselected On Environmental Concerns

Large numbers of businesses, powering the equivalent of 30% of the economy, have started dumping suppliers based on their environmental, social and ethical behaviours.

Some 42% of surveyed members of the New Zealand Business Council for Sustainable Development say they have "deselected" suppliers on this basis.

And 53% of those surveyed have now included social and environmental criteria in terms and conditions for their suppliers while a further 26% plan to.

The Business Council, whose 58 member companies' annual sales equate to more than 30% of gross domestic product, says figures on the new trend come from its just-completed annual member survey.

Business Council Chief Executive Peter Neilson, in a speech prepared for delivery to a 7am Electra Kapiti Business Breakfast tomorrow (September 6), says the results show how deeply embedded sustainable practices are now becoming in everyday New Zealand business.

The major switch to private sector suppliers, who manage to compete on product and price while taking care of the environment and people, will be further compounded by the Government's decision to make its 34 core departments procure sustainably. This will affect $6 billion in departments' annual spending decisions as the policy comes into effect during the next year.

Mr Neilson says consumers are also signaling they would like to switch to sustainable suppliers. The market segment driven by these concerns has grown 6% to 32% during the past two years.

"Millions are waiting to be won and lost on sustainable performance."

A directory of Business Council members is at http://www.nzbcsd.org.nz/directory.asp

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