Supply chain management & procurement
committed to engaging and collaborating with our partners and suppliers to drive positive change.
Engaging with Partners to drive positive change
“For more than a decade, our leading procurement processes have been driven by our pledge to being a socially and ethically responsible company. We believe in leading by example when it comes to sustainable procurement practices. We have incorporated the UN Global Compact into our supplier selection, and strive to work with like-minded responsible suppliers and partners. MCI is a sustainability awareness advocate and is committed to helping the Meeting and Events industry to create a lasting legacy.”
Jodie Torriani, Head of Global Hotel Procurement & Strategic Sourcing
EcoVadis CSR Assessment
EcoVadis evaluated MCI’s sustainability performance according to 21 criteria across four categories, cutting across, environment, labour and human rights, ethics and sustainable procurement practices. Our sustainability policies, initiatives and results were analysed following international CSR standards, including the Global Reporting Initiative, United Nations Global Compact, and ISO 26000. EcoVadis assesses more than 65’000 companies in 200 categories and 160 countries.
In 2019, MCI achieved an EcoVadis score of 58 out of 100 points, placing us in the top 17% of suppliers in the management consultancy segment, with a “silver” status rating.
We are keen to further improve transparency across all our operations. We will continue to engage with our stakeholders and suppliers to increase our positive impact across everything we do.
Managing our Supply Chain
At a strategic level, the sustainability of our supply chain is managed by our Group Procurement Teams and our HQ Sustainability Team. Driving our commitment across the supply chain, each primary office has a Local Procurement responsible.
Our environmental, social and ethical requirements are communicated to our supply chain through the MCI Supplier Code of Conduct. Compliance with this policy is a core component of our group and local preferred supplier agreements.
All new group and local preferred suppliers must sign and comply with this Supplier Code of Conduct. All contract renewals must also include it.
Scale of Supply Chain
In 2019, MCI contracted for €362 million of direct services with third parties to manage the clients operations, without considering the indirect spend on behalf of our clients where MCI is acting as an agent.
Our largest category of procurement is hotels which account for more than half of our total spend. Venues, Food, Audio Visual, Transport, Temporary Staffing, Décor and Destination Management Services make up the rest.
The good news is that many suppliers around the world are committing to environmental and social practices and this, in turn, helps us deliver more sustainable events.
Of course, we can always do more, and we are engaging with our suppliers and partners to define together how we can accelerate improvements across the value chain.
An initial assessment of our suppliers is done through our internal event audit tool. Further evaluations of supplier compliance against our Code of Conduct are conducted on a random and specific basis. For high profile more significant events, our Global Sustainability team can be involved to assess and audit performance. For the majority of suppliers, our local and group procurement teams are provided with tools to allow them to evaluate performance.
Key risks that have been identified in audits include the management and impact of water, food and beverage, third supply chain, health and safety and compliance.
We deliver an average of 6,500+ projects a year, working with more than 50,000 suppliers, which makes it a challenge to assess all of them.
We have identified supplier assessment as an area where we need to improve and create more rigorous procurement processes.
In 2019, we created a TaskForce consisting of our Global Procurement Director, our Group Internal Controller & Data Protection Officer, Our Group Sustainability Team and one member of our Executive Team.
A risk mapping and interviews with several Business Heads were conducted. We have defined a 5-year strategy with the following main actions:
- Sustainability requirements are fully embedded in the sourcing from the outset for all medium to large spend category contracts (tracking done through our internal event audit tool).
- Assessment of supplier/partner capabilities and performance is supported by the use of internally developed digital tools.
- Contract management is prioritised based on sustainability risk and opportunity.
Due diligence processes, tools and training will be rolled out in 2020
Training our Talents and Partners
Sustainability 101 is part of our Onboarding programme for all new talents joining the company.
In 2019, we delivered 17 online or face to face sustainability training, that addressed sustainable sourcing, operational and sales practices as well as event production.
We conducted 9 workshops and keynote sessions for our suppliers and industry peers, engaging +700 people, sharing our knowledge and searching for new ways to collaborate.
Sustainability Supplier of the Year
To successfully integrate sustainability into our operations collaboration with our partners and suppliers is vital.
To recognise – and thank – our suppliers and partners for their contributions to help us improve sustainability performance and implementation, we created in 2019 the “Sustainability Supplier of the Year” award.