Wolseley Annual Report 2009
Responsible business
We are committed to working within the laws and regulations of all jurisdictions in which we operate and to comply with our Code of Ethics. We will encourage our suppliers to meet similar standards.
The Group’s Code of Ethics sets out a number of fundamental principles which all Group companies and employees are required to follow. The Code sets expectations for fair competition, compliance with laws (including anti-trust laws), avoiding bribery and conducting business with integrity with customers, suppliers and other stakeholders.
In the competitive markets in which we operate, it is vital to ensure that we conduct our business responsibly and continually reinforce with our employees, customers and suppliers the principles by which we operate. With this in mind, a review of the Group Code of Ethics is currently being conducted, intended to refresh its content and reinforce the standards to which the Group adheres. Our intention is to introduce the updated Code by the end of 2009, together with individual new policies and training on the prevention of fraud and corruption. The Group has an established competition law compliance programme and improved training materials have been developed which will be used with employees in the coming year.
Timber sourcing
Sourcing timber from sustainable and well-managed forests is important to Wolseley. Many of our customers, including governments, demand legal and sustainable timber and our sourcing practices in this area help to ensure our reputation for supplying high quality products. We are committed to the elimination of illegally logged timber from our supply chain.
In support of our global timber policy, which sets out Wolseley’s commitment to the responsible purchasing of forest products, our timber procurement process includes a global risk assessment system that identifies the legal and sustainable status of the timber products we purchase. The system provides a risk assessment of product information from our suppliers, including details of species and country of origin, and captures supporting documentary evidence. This information is verified for Wolseley by an independent third party.
The system is particularly valuable where timber is sourced from forest areas where credible certification schemes do not currently operate, which may pose a greater risk of non-compliance with our policy. Where high-risk products have been identified, we have worked with our suppliers to improve control processes or identify alternative products. Where there has been no demonstrable improvement, we have ceased purchases and removed the product from sale.
| FY 2009 (cubic metres) |
FY 2008 (cubic metres) |
FY 2007 (cubic metres) |
|
|---|---|---|---|
| Total timber purchases1 | 2,051,000 | 2,351,000 | 2,997,000 |
| Total certified2 | 77% | 76% | 65% |
1 This year’s timber data does not include data relating to Stock Building Supply (see Environment). Data above relating to FY 2008 and FY 2007 has been restated to allow consistent comparison.
2 Timber sourced from forests certified by recognised sustainable forestry schemes such as FSC, PEFC, SFI, CSA and MTCS.
FSC Forest Stewardship Council
PEFC Programme for the Endorsement of Forest Certification schemes
SFI North American Sustainable Forestry Initiative
CSA Canadian Standards Association (Sustainable Forest Management Standard)
MTCS Malaysian Timber Certification Scheme
The reduction in the Group’s timber purchases this year, compared to previous years, is almost entirely due to the contraction of the markets in which we operate.
Wolseley operates chain of custody schemes in its European businesses that provide independently certified verification of the ownership of products throughout the supply chain. Documentation to support the chain of custody is captured by our risk assessment system. Certification schemes have made the identification of sustainable timber much clearer for our customers.
Wolseley is an active member of the UK Timber Trade Federation (“TTF”), with which it has worked in close collaboration since 2004, helping to introduce the TTF’s Responsible Purchasing Policy in 2006. From October 2009, all TTF members must demonstrate as a condition of membership a commitment to a process of due diligence in the supply of timber. Wolseley’s timber risk assessment system meets this requirement.
Our aim is to be certain that all our timber is obtained from legal sources and from suppliers operating responsible forest management practices. Where we cannot be certain, we encourage our suppliers to make efforts to improve their own practices and work towards credible certification. This helps us to ensure that, as well as being compliant with all applicable laws, our timber is sourced from sustainable forests.
Other product sourcing
A pilot project is underway in Wolseley UK to begin the process of verifying our suppliers’ practices against our ethical sourcing standards. To achieve this, we will seek assurances from our suppliers regarding a number of social measures, including in relation to labour standards. It is intended that in time, the lessons learned from this UK project can be used to implement similar initiatives in other parts of the Group.