Sustainable sourcing
We pride ourselves on being mindful of the impact we make on our world—this extends to how we engage with and drive impact through our supply chain. We know that our supply chain has associated risks and opportunities when it comes to social and environmental performance. That is why we are committed to upholding and expanding our sustainable sourcing practices.
Our commitment
We’ll work with our suppliers to understand their sustainability practices and use this information when making purchasing decisions. We’re committed to improving our screening, evaluation, and review of new and existing suppliers against sustainability criteria and incorporating our findings into our supplier selection process. Our sustainability criteria may include topics related to climate action and environmental commitments, compliance with human rights and fair labor principles, diversity, equity, and inclusion commitments, among others.
Our commitment contributes directly to the following UN Sustainable Development Goals:
Supplier diversity program
Principal values doing business with diverse suppliers. Through our supplier diversity program, we actively support and facilitate the purchase of products and services from businesses owned or operated by individuals representing people of color, women, members of the LGBTQ+ community, veterans, or individuals with different abilities. We are an active member of the Financial Services Roundtable for Supplier Diversity, a group dedicated to building strong supplier diversity practices in the financial services industry.
In 2022, our goal was to source 9% of eligible U.S. spend with diverse vendors. We made progress but fell short of our goal, spending 7.4% with diverse vendors. Our 2023 goal is to source at least 5.8% of eligible spend in the U.S. from diverse suppliers, amounting to $53.2 million through tier one and tier two spending.
Targets and highlights
2023 targets
Supply chain management
Educate our supply chain on the importance of considering diverse suppliers. Increase the overall direct and indirect use of diverse suppliers within our supply chain by encouraging our top 100 suppliers to share their quarterly spend totals with diverse suppliers which will improve transparency.
Inclusion
Include progress toward supplier diversity goal as a metric of the Diversity Index, which is a metric toward employee incentive pay.
Diverse suppliers
Build and maintain a robust and qualified diversity spend pipeline through industry peer group participation and partnerships with national diversity credentialing organizations.
Our 2023 goal is to source at least 5.8% of eligible spend in the U.S. from diverse suppliers, amounting to $53.2 million through tier one and tier two spending.
2022 highlights
We continued working with the Financial Services Roundtable for Supplier Diversity, benefiting from its benchmarking survey and supplier-development committee.
We focused on tier two reporting from non-diverse suppliers and improved communication on timing and reports.
We updated our Global Supplier Code of Conduct, which includes more robust expectations and guidelines for suppliers related to environmental, social, and governance performance, including human rights.
Expectations
We expect all suppliers, vendors, and businesses we do business with to comply with our Global Supplier Code of Conduct, and/or our Global Code of Conduct.
Related Topic
Environmental impact
To foster a more secure world, we must be mindful of our impact on it.
