​

​

CBRE is focusing and encouraging responsible procurement by developing and rolling out a new supplier onboarding and screening process – Supplier

Shield. This will help us identify, manage, and mitigate supplier-related risks and enable a high level of compliance. The adoption of Supplier Shield will help

us:

• Advocate and encourage suppliers to abide by and exceed CBRE’s Supplier Code of Conduct, Labor and Human Rights, Ethics, Health and Safety requirements
• Integrate responsible procurement into supplier onboarding process and leverage supplier risk ecosystem (including our EcoVadis partnership)

Provide sourcing and supplier training, playbooks, toolkits, and case studies for suppliers and staff.

Environmental, social and governance factors are rapidly becoming critical considerations for all businesses around the world.​

​

ESG drivers:

• Evolving regulation: Many governments are regulating their economies to drive sustainable market behaviors by setting carbon emission budgets and regulating activities with negative impacts on society/ environment. Additionally, some local governments are regulating embodied and operating carbon emissions from buildings, particularly new builds by requiring sustainability ratings or emissions and energy efficiencies for any new buildings
• Consumer preference: Companies are responding to consumers gaining awareness of climate change and ESG related issues and changing their purchasing behavior around the world. Clients are increasingly seeking “green features” and deciding to do business with companies that align with their own climate action [AS(1] journeys

​

​

​

​

• Pressure to address social inequality: Climate change and broader environmental issues are exacerbating social inequalities globally and locally​

• Indicators of long-term return: Investment trends prove a strong correlation between ESG performance and long-term financial return. There is also a recognition that mitigation of sustainability risks is essential to secure long-term returns. Fund managers and investors are beginning to react accordingly

​

• The Paris Climate Agreement: A legally binding international treaty between governments on climate change with the goal of limiting global warming to below 2 (preferably 1.5 degrees Celsius), compared to pre-industrial levels

​

• Urgency of climate change: There is a growing urgency to act faster and harder on climate change related issues as climate change effects accelerate and become more visible

​

• Adoption of reporting and disclosure schemes : Numerous global organizations and alliances have formed and are starting to drive standardized transparency of key ESG issues in business reporting​

• COVID19 and supply chains: COVID-19 has revealed reliance on global supply chains as well as the fundamental focus/ need of human health​

• Corporate adaptation and adoption of net zero targets and climate action goals: Organizations are rapidly realizing that they need to adapt to the changing regulatory landscape and to consumer demands and are adopting their own climate goals. This results in increasing levels of ESG related contractual obligations between clients and suppliers.​

CBRE believes that with these drivers, new geopolitical, technology, trade and supply chain challenges / opportunities that we all need to be prepared for a

more turbulent world with larger business cycles. ​

CBRE manages its governance of supplier risks in the context of sustainable procurement is to identify, prioritize and manage the inherent risks related to

procurement activities. ​