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  3. The benefits of working with suppliers that are Sedex members

The benefits of working with suppliers that are Sedex members

As the building and construction industry evolves to incorporate more sustainable practices, it is crucial for merchants to adopt practices that ‘do the right thing’ in terms of protecting the world around us. With this in mind, Darren Bates, Sales Director, Distribution at ERA, discusses why partnering with suppliers that are part of Supplier Ethical Data Exchange (Sedex) is a must for merchants.

With 45% of the UK’s carbon emissions coming from the built environment, the construction industry is rapidly evolving to ensure it can reduce its impact on the environment and meet the country’s net-zero targets.  

Meanwhile, consumers are becoming more invested in purchasing products from reputable companies that take a strong stance on ethics and sustainability. In fact, according to last year’s Deloitte’s Sustainable Consumer report, one in three consumers have stopped purchasing from brands because of ethical and sustainability concerns.

So, as customers, rightly, become more concerned with ethics and sustainability, it makes sense for merchants to work with suppliers that can prove their credentials in these areas, especially as concerns about greenwashing increase.

Merchants which are now choosing suppliers based on factors beyond cost and quality require effective ways to ensure that the companies they work with can provide tangible evidence of ethical practices. Partnering with suppliers that are Sedex members is one way to do this. 

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What is Sedex?
A solutions provider that describes itself as a ‘profit-for-purpose’ organisation, Sedex is a global technology company dedicated to improving social and environmental sustainability in supply chains. Sedex’s community of business customers now comprises over 85,000 businesses and 104,000 supply chains sites globally.

Its platform, tools and services enable businesses to easily manage and improve their performance in areas that concern labour standards, health and safety, environment, and overall business ethics.

Companies, such as ERA, can provide data about their ethical practices through the Sedex Platform, which is then available to access by Sedex members that want to ensure their suppliers are acting responsibly. It also provides risk assessment tools that can help partners identify risks within their own supply chain.

While Sedex does not provide certification, it offers the Sedex Members Ethical Trade Audits (SMETA), which is a widely recognised on-site assessment in relation to ethics and sustainability. Businesses can voluntarily undergo this type of audit to demonstrate and improve their ethical compliance.

 

So, what is SMETA?
There are two types of SMETA audit, a two pillar and a four pillar, depending on the area of focus:

  • Two pillar – focuses mainly on labour standards and health and safety, with some aspects of environmental management
  • Four pillar – focuses on labour standards, health and safety, environmental management and business ethics

Should a company wish to undergo an audit, a third-party firm, which is approved by Sedex to carry out SMETAs, will conduct an audit that evaluates the company’s performance against SMETA standards in the areas relevant to the chosen scope.

Supply-side companies are then able to share their audit and results (amongst other sustainability-related information) with multiple customers simultaneously via the Sedex platform and can demonstrate any improvements as they update their data.

 

Benefits to merchants
It is crucial that merchants work with suppliers that boost their reputation, ensure operational efficiency, and provide customer satisfaction, especially given the increasing competition in the industry. That is why partnering with suppliers that are Sedex members can provide a competitive edge.

 

Customer demand
Customers are becoming more and more aware and concerned with the ethical implications of buying from certain companies and suppliers. By offering products from suppliers with Sedex membership, merchants can meet these demands, showing evidence of ethical business practice.

 

Reputation
In a similar vein, working with suppliers in the Sedex network aligns the merchant in question with companies that are committed to meeting ethical standards, in turn enhancing their reputation as a business with ethical supply chain operations.

 

Risk avoidance
Merchants partnering with Sedex-member suppliers can better protect themselves against legal challenges, costly disruptions and a damaged reputation. By building greater transparency through Sedex on social and environmental practices, merchants can see suppliers’ commitments to ethical operations and continuous improvement. They can strengthen their relationships with best-in-class suppliers, in support of their own ethical sourcing commitments.

 

ERA and Sedex
ERA, one of the UK’s leading home security and fenestration manufacturers and suppliers, is a member of Sedex, listed both as a buyer and supplier on the platform. The company also undergoes an annual SMETA four pillar audit. Further demonstrating its commitment to sustainable and ethical practices, ERA is proud to confirm that its top five suppliers are also members of Sedex. In an industry where trust, quality, and reputation are of paramount importance, merchants certainly have a lot to gain by working with partners that share their sustainability-related data on Sedex. Not only does this safeguard merchants in a world where sustainable and ethical practices are becoming more and more legislated, it also supports a more ethical and sustainable construction industry as a whole.

ERA’s Sedex membership forms part of a wider sustainability strategy for the company. As part of its wider 2030 Sustainability Roadmap, ERA has committed to achieving 100% sustainable packaging by 2026 and has pledged to eliminate waste to landfill by the same year. In addition, ERA had its science-based targets validated by the Science Based Targets Initiatives in 2022. These targets set out to reduce absolute scope 1 and scope 2 Greenhouse Gas (GHG) emissions by 46.2% by 2030 from a 2019 base year, and to reduce its absolute scope 3 GHG emissions from purchased goods and services by 27.5% within the same timeframe. 

What’s more, the most recent annual report confirmed that it increased sustainable product revenues to 23% of its total revenues. Positively impacting one or more of the UN’s Sustainable Development Goals, with 11% of that revenue accounting for products that specifically impact energy saving initiatives. By making the commitment to work with sustainable and ethical suppliers, merchants can ensure that they are a part of supply chain that attaches the highest of value to people and the planet.