Scottish and Southern Electricity Networks (SSEN) Distribution has announced the launch of its Sustainable Supplier Code, which will require 65% of its supply chain (by spend) to have its own carbon reduction policy.
The electricity distribution and transmission network has said that it undertook a “leadership approach” and collaborated with its supply chain during engagement sessions for its RIIO-ED2 business plan.
The announcement follows SSEN submitting its final RIIO-ED2 business plan in 2021 and being awarded £3.59 billion of baseline total over the five year period by Ofgem.
By engaging with its stakeholders, SSEN has launched the Sustainable Supplier Code alongside a Supply Chain Sustainability School to help its supply chain understand “all areas of sustainability.”
“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,” said director of procurement distribution at SSEN, Rebecca Richardson.
“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.”
The Sustainable Supplier Code outlines 11 targeted metrics for SSEN’s supply chain to follow.
The Code also requires that 65% of SSEN’s supply chain (by spend) has its own carbon reduction policy and target in place and that these are regularly reviewed with annual progress reports.
An additional requirement outlined by the Code is that 60% of its supply chain (by spend) has a Carbon Disclosure Project (CDP) climate change score.
SSEN’s RIIO-ED2 target is to have 80% of its supply chain signed off the Code by the close of RIIO-ED2 in 2028.
“Our Sustainable Supplier Code is the ultimate guide to collaborative working with our supply chain through the RIIO-ED2 price control,” added Shirley Robertson, head of strategic planning and sustainability distribution at SSEN.
“We are excited to build strong and ambitious relationships with our suppliers to enable the crucial step change required heading into RIIO-ED2 to deliver our sustainability ambitions, whilst also supporting our suppliers on their net zero journey and ultimately building a better planet for all.”
SSEN has said that the Code is its first iteration for RIIO-ED2 and that annual updates will be conducted and yearly targets adjusted according to maturity and supply chain engagement.
