SGN has been recognised by CDP for our work engaging with our suppliers to tackle climate change.
We are among the top 8% assessed for supplier engagement on climate change globally, based on our 2022 CDP disclosure. We’ve also been graded A, in CDP’s Leadership band, which means CDP view us as implementing current best practices. This is higher than the European regional average and higher than the oil and gas storage and transportation sector average, both grade C.
CDP evaluates organisations’ engagement with their suppliers on climate change. Purchasing organisations have the potential to incentivise significant environmental changes through engagement with their suppliers. By evaluating supplier engagement and recognising best practice, CDP aims to accelerate global action on supply chain emissions.
In March 2022, we issued our Sustainable Procurement Supplier Code which aims to engage with and support at least 80% of our supply chain on environment, social and governance (ESG) topics. This includes working with our supply chain to assess, monitor and establish a baseline of embodied carbon in purchased goods, and ultimately establish targets for improvements. We have also invited the majority of our suppliers to join the Supply Chain Sustainability School, which provides them with a range of resources to improve across the ESG spectrum.
These include suppliers such as Morrison Energy Services, a part of M Group Services, who we’ll be collaborating with on a significant gas diversion project in Dunkeld, Scotland. They’ll be installing a new 15km intermediate pressure gas pipeline as part of an 18-month contract after demonstrating our shared environmental commitments and respect for the local areas of outstanding natural beauty.
We are committed to achieving relationships with suppliers that are mutually beneficial, promote best practices and continuous improvement. We’re also working collaboratively with the other gas distribution companies to streamline processes for suppliers and share learning, in particular in relation to embedding the principles of circular economy and measure and reduce embodied carbon.
Our CDP performance comes following the announcement last month that we have achieved the Taking Action tier of the Carbon Trust’s Route to Net Zero Standard for our carbon emissions reductions.
Carolina Karlstrom, Head of Sustainability at SGN, said: “CDP’s recognition of our supplier engagement further demonstrates our commitment to achieving net zero by 2045. We’re proud to be above the industry average and look forward to continuing to collaborate with our suppliers to push for greater change.”
Glenn Norman, Director of Morrison Energy Services Gas Business Unit, said: “SGN demonstrate a care and concern for carbon saving and environmental matters by placing these issues at the heart of their tendering process. In this way, they are able to select suppliers that show sensitivity and respect for the community and environments in which they operate. We look forward to developing our already excellent relationship with them and collaborating on a wide range of projects throughout this and future price control periods.”
