Food Services-ESG & Sustainability
ESG (Introduction)
Environmental, social and governance (ESG) criteria are three categories of non-financial performance indicators that can be used to better understand material risks and opportunities within an organisation across each of these categories. CBRE Procurement defines ESG as: (E) decarbonising the supply chain and environmental risk, (S) supplier diversity, and (G) responsible sourcing.
Catering, Food services, Café services, and Vending services can create material ESG risks and opportunities. It is therefore important that this category is proactively managed to ensure ESG compliance from all aspects.
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Food Services and ESG
The 3 Components of ESG
Environment:
There are several initiatives that can be undertaken by CBRE suppliers to minimise environmental degradation and excess carbon emissions.
When offering their services Supplier partner's should be considering:
- Minimising food waste
- Adopt an electric food delivery fleet
- Programs to reduce water usage
- Source food locally from sustainable suppliers
- Eliminate single use plastics and adopt biodegradable tableware
- Offer meat-free alternatives
Social:
Food services offers opportunities to engage diverse suppliers, social enterprises, and drive local skills development.
When offering their services Supplier partner's should be considering:
- Using Diverse partners
- Creating employment opportunities for people from disadvantaged backgrounds
- Using local suppliers and ingredients
- Innovative social enterprise models, where profits are reinvested in social programs
Governance:
Food services and its supply chain represent significant governance risks, especially in the area of modern slavery and safety.
Supplier partner's should be considering:
- The origins of high-risk modern slavery products, such as coffee, chocolate, palm oil, and fresh fruit and vegetables
- How to consistently manage their own suppliers to address modern slavery risk
- Programs to ensure food safety are diligently followed
For further information and updates on ESG please access the below links
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RFPs are a crucial part of the procurement process that enable CBRE to assess the ESG capabilities and credentials of our potential suppliers. ESG sections must be used in all procurement activities. A average weighting of between 5% and 20% depending on the type of procurement activity and its relative sustainability risk should be applied.
ESG questions have been embedded into the Zycus FOOD RFP template.
ESG & Sustainability
ESG (Going to Market-BIDs)
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Food Services and ESG
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You may access the RFP Template from the link below:
For additional questions please contact either the Global ESG Team of your Global Food Category Lead.
Please refer to the following pages related to Contracting and Transition
Ensuring supplier partner's are contractually obliged to achieve our ESG expectations helps us achieve our Global ESG goals.
The following model contract clause should be used in all procurement activities. However, it can be adapted and updated to reflect the unique ESG considerations of a particular industry, procurement activity, or supplier. Guidance should be sought from the ESG Procurement team and relevant Legal support if making considerable adjustments to the contractual wording.
ESG & Sustainability
ESG (Contracting)
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Ver 1.0 (Jun 22)
Contracting
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Contracting Clause (To be added to all Contracts)
Environment, Social, and Governance (ESG). The Service Provider shall make reasonable efforts to minimize negative and maximize positive ESG impacts created in the delivery of goods and/or services to CBRE and foresee any known or expected future changes in ESG regulations or requirements.
Supplier partner shall adopt an ESG policy, with supporting procedures, to ensure that it adheres with ESG requirements and best practice. Each year, Supplier partner will provide CBRE a report outlining how the Service provider:
1. Is managing important ESG matters
2. Is identifying what further action (if any) should be taken
3. Has improved in its implementation of the ESG Policy so far
4. Will improve its performance further and propose at least two new options for improvements to CBRE and our Clients
CBRE may occasionally request other information regarding developments in ESG best practice, requirements, policies, or procedures, which the Supplier partner must promptly comply with. If any breach of ESG policy or requirements has occurred; Supplier partner shall proactively and promptly inform CBRE.
In addition to the foregoing, and as may be amended by a set of KPI’s agreed upon by the Parties, the Service Provider further commits to the following ESG obligations:
a. Environment
1. With regards to carbon emissions, Supplier partner must provide the following data every 6 months:
Scope 1: Direct emissions from Supplier partner owned or controlled sources (e.g., emissions that are emitted on-site or by vehicles owned or controlled).
Scope 2: Indirect emissions from the generation of purchased energy (e.g., energy).
Scope 3: All other indirect emissions not included in Scope 1 and 2 that occur in the value chain of the Supplier, including both upstream and downstream emissions. (e.g., all emissions generated suppliers, middle-men, and consumers of a product or service that aren’t accounted for in the first two scopes)
2. With regard to the foregoing Scope, Supplier commits achieve the following outcomes (“Expected Outcome”):
a. Reduce annual energy consumption by __ %, waste by ___ % and water by ___ %;
b. Provide reliable quarterly reporting of energy consumption; and
c. Propose quarterly sustainability initiatives.
b. Social
1. Supplier partner shall, to the extent it is not a diverse company being at least a 51%-owned, managed, and controlled by an underrepresented group (“Diverse Supplier”), adopt a Supplier Diversity Program, including the ability to identify Diverse Supplier partner's, monitor spend, develop existing Diverse Supplier partner's, and add new Diverse Supplier partner's. Supplier partner should set annual targets to achieve 20% Diverse Supplier spend
2. Supplier partner shall participate in CBRE’s Tier 2 Diverse Supplier Program, including:
a. provide CBRE with a 2nd Tier Supplier Diversity Participation Plan by December 1 of each year, outlining Service Provider’s success and challenges over the previous year and plans to achieve 20% diverse spend in the coming year
b. Submit quarterly Diversity Results Reports, outlining the spend with all Diverse Suppliers both direct and indirect by the 15-day following the close of each quarter, electronically into CBRE’s Tier 2 reporting portal, or via another mutually agreed format.
c. Governance
1. Supplier partner will adhere to CBRE’s Supplier Code of Conduct and manage Service Providers supply chain in accordance with its requirements. Service Provider must understand the inherent governance risks in providing their products and or services to CBRE and CBRE Clients and work with CBRE and CBRE’s recommended service providers to offset the inherent risks such as compliance, health and safety, cyber security, modern slavery and so on.
2. Supplier partner must register, if not already registered, in CBRE’s ESG compliance tools, including Supplier Shield (CBRE’s global due diligence platform) and EcoVadis (CBRE’s third party sustainability performance management tool), with costs to be borne by Supplier partner but not more than US$3,000 per annum.
Once onboarded, suppliers must be actively managed to ensure they meet their contractual and promised ESG goals and standards.
Managing existing suppliers
Food services suppliers must have KPIs and expectations aligned to the specific contract and the questions from the RFP.
The following is a set of supplier expectations aligned to the standard CBRE Food Services ESG RFP template.
ESG & Sustainability
ESG (Transition)
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Transition
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Environmental
ESG Commitment (Level 1)
ESG Component
ESG Commitment (Level 2)
The supplier partner agrees to provide evidence that they are conducting initiatives within their own operations that positively contributes to the environment.
The supplier partner commits to minimising or replacing the use of palm oil with more sustainable alternatives.
Environmental
As a minimum, all products containing palm oil must be RSPO certified.
Supplier partner must provide non-meat alternatives and must set targets to reduce the amount of meat products purchased.
Environmental
Supplier partner should source raw materials from local suppliers and support social enterprises where possible. Supplier should also favour seasonal sourcing in the locality of sites where CBRE operates
Environmental
Supplier partner should actively promote animal welfare practices within their supply chain.
Environmental
Supplier partner must manage their water consumption and contribute to the water consumption reduction objectives of the building where they operate.
Environmental
Supplier partner must tightly manage food waste and should collaborate with local food share charities and/or the building's waste management companies to divert their waste to food digesters or any other systems transforming waste into energy.
Environmental
Supplier partner commits to minimising use of plastic and working with their own suppliers to minimise plastic waste through alternative biodegradable or compostable material.
Environmental
Supplier partner should disclose any additional procedures or innovations to accelerate the elimination of waste to landfill.
Environmental
Supplier partner agrees to disclose if they source their raw materials from BRCGS Global Food Safety Standard accredited suppliers.
Social
Supplier partner agrees to disclose the relevant health and safety and Food handling training they have provided their workforce on a yearly basis.
Social
Supplier partner agrees to promote wellness through healthy and sustainable diets that positively impact people and planet.
Social
Supplier partner must disclose their gender pay gap reports when available.
Social
Supplier partner should screen their own supply chain for environmental and societal practices.
Governance
Supplier partner must provide annual reports on the following for each CBRE contract:
- Volume of Palm Oil contained in products (actual, % RSPO, % non-RSPO, annual change)
- Meat use (actual by weight, annual change, ratio of meat to non-meat)
- Average food milage (kilometres, annual change)
- Products disaggregated by certifications (%)
- Water consumption of products purchased (actual, annual change)
- Packaging FSC® certified (%)
- Packaging certified biodegradable/compostable (%)
- Packaging disaggregated by materials (%)
- Plastic use by single-use and multi-use (weight, annual change)
Governance
Preference given to supplier partner's who disclose they prioritise and promote Organic, Fair Trade, and/or any other relevant local certifications depending on the territory of operations (e.g. Soil Association in Europe).
Governance
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Procurement managers are encouraged to actively engage and communicate with their suppliers. Particularly, when having a review of your suppliers, make sure you are relaying the following message:
If you [supplier] provide high quality services and/or products and collaborate to achieve our ESG goals and ambitions, by hitting your ESG KPIs, you will improve the likelihood of building a long term preferred or strategic partnership. As a result, CBRE would assist you in growing your business with clients who are also ESG focused. We would do this by:
· Providing you access to our procurement and ESG tools and resources
· Promoting your products/services internally with budget holders, and with clients
· Assisting you in gaining competitive opportunities to grow your business to offset the potential increase in costs and efforts associated with ESG related activities.
ESG & Sustainability
ESG (Comms and FAQ)
Ver 1.0 (Jun 22)
What to Communicate to your Supplier
Q & A- What to do if your Supplier partner has questions
The following is a list of typical questions or issues your Supplier partner's may have for you when you discuss the new ESG requirements CBRE is implementing, along with suggested responses;
Supplier partner does not want to commit to ESG requirements:
Choosing not to commit to CBRE’s ESG requirements would go against CBRE’s net zero commitment for 2040, our Supplier Code of Conduct, our ESG contract clause, and our client’s expectations.
This creates ESG risk for CBRE and its clients – for example, this could lead to CBRE needing to pay extra to offset emissions associated with your activity and your product/service. This would lead to a higher cost of business with you as a vendor and will endanger a longer-term relationship with your organisation.
Supplier partner does not want to sign up to EcoVadis or the sustainability assessment platform:
EcoVadis is an easy way for you to start on your sustainability journey, giving you and your clients visibility over your ESG maturity and risks. If you are already underway in your sustainability journey, EcoVadis would help you benchmark your organisation against other suppliers and competitors.
CBRE uses Ecovadis assessments of our suppliers as the baseline of supplier partner's sustainability journey. We require our suppliers to build up to date profiles in EcoVadis so that we can advise our clients that we are working on making sure we have a more sustainable supply chain with lower risks and is more fit for purpose.
Supplier partner does not want to pay to sign up to EcoVadis:
We understand there is a small cost associated with signing up, but this will help you better align with our sustainability journey and objectives, which means we would be able to continue doing business with you. EcoVadis is fast becoming an industry standard, with many of your large existing or potential clients using the platform – so the effort you put into building your profile for CBRE can be leveraged for other business relationships.
Supplier partner does not understand what scope 1, 2 and/or 3 emissions are:
A company’s GHG emissions is generally classified into three “scopes”:
Scope 1: Direct emissions from Supplier partner owned or controlled sources (e.g., emissions that are emitted on-site or by vehicles owned or controlled)
Scope 2: Indirect emissions from the generation of purchased energy (e.g., energy)
Scope 3: All other indirect emissions not included in Scope 1 and 2 that occur in the value chain of the Supplier, including both upstream and downstream emissions. (e.g., all emissions generated suppliers, middle-men, and consumers of a product or service that aren’t accounted for in the first two scopes). This includes emissions associated with purchased goods and services, capital goods, transportation and distribution, waste generated in operations, business travel, employee commute, leased assets, processing of sold products, use of sold products, end-of-life treatment of sold products, franchises, and investments
Supplier partner does not meet one or more of the required ESG KPIs (e.g., supplier does not have a Modern Slavery commitment):
We understand that you may be at the beginning of your sustainability journey, and therefore you do not currently meet this requirement. CBRE encourages all our suppliers to disclose plans to develop [KPI] to meet the requirement by next year. In the interim, please provide us with a declaration of conformity (written self-claim) on this subject/those subjects.
CBRE is building resources to assist you to build out a full suite of ESG policies and processes that meet our expectations. Please engage with our ESG sustainability team to find out more. Procurement managers should provide equal opportunities for improvement and education on behalf of the supplier. If suppliers do not comply or refuse to collaborate and/or comply after their issues have been addressed (see FAQS above), procurement managers may be required to terminate or choose not to renew expiring contracts and seek alternative suppliers.
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Confidential & Proprietary | 2022 CBRE Inc.