DBS procures products and services from more than 6,000 suppliers, predominantly in Singapore and Hong Kong. Approximately 80% of our expenditure are for professional, real estate, sales and marketing, IT outsourcing and corporate services.
Our approach to sustainable sourcing revolves around the following objectives:
We seek to influence our supply chain towards sustainable practices through the DBS Sustainable Sourcing framework, which we developed in 2015. Central to the framework are the DBS Sustainable Sourcing Principles (SSP), which outline our expectations of all suppliers, regardless of value or volume of purchase, in four key areas – human rights, health and safety, environment sustainability, business integrity and ethics.
In addition to the SSP, we conduct a sustainability risk materiality assessment to identify spend categories with high ESG risks. The assessment takes into account the supplier’s manufacturing process, service delivery, business volume and industry-specific guidelines, and is reviewed every two years to ensure relevance. For competitive tenders in high-risk categories, up to 10% of the supplier selection criteria are attributed to sustainability considerations. This reflects our position that, all else being equal, we will always award our business to more sustainable products and services.
DBS will continue to work with our suppliers and stakeholders to fine-tune the DBS Sustainable Sourcing framework and drive improvement in our supply chain.