We have been engaging with our suppliers via the Carbon Disclosure Project (CDP) for years. We have also started with training and supplier engagements, where we were expecting a limited number of suppliers reporting any data via the CDP platform. Every year we have been extending the number of suppliers that we approached with training and requests to submit data on climate change and carbon emissions. We do not only monitor the percentage of responding suppliers, but we also check the quality of their input, connected to the transparency of scope 1 and 2 emissions disclosures, emissions reductions activities defined and followed, as well as commitments on Renewable Electricity (RE100) or Scientific Based Targets (SBTs). Additionally, we are participating in the SBT project of CDP – engaging our key suppliers in China.
To incentivize our suppliers, Signify has a supplier dedicated program called Tritium, which rewards suppliers based on their performance against criteria linked to Signify’s strategic priorities, including Climate action. The better the supplier’s performance, the higher it scores and the more beneficial the relationship becomes for the supplier. Examples of incentives offered as part of the program are recognition through the Supplier Awards, a preferred business relationship and a higher level of engagement with Signify through, for example, the innovations workshops or a joint management agenda. This communicates clearly to suppliers that Signify is truly committed to sustainability and is fully willing to do its part in helping the supplier to improve.