**Brussels**: Yettel’s Sustainability Manager Margita Kolcheva outlined essential strategies for building a sustainable supply chain, highlighting the significance of ESG principles and supplier engagement in light of new EU directives. Emphasising collaboration, Yettel aims to navigate environmental and social challenges alongside its partners.
Environmental, social, and governance (ESG) sustainability has emerged as an imperative for businesses, particularly in the context of constructing responsible and transparent supply chains. The evolving landscape of societal expectations and regulatory frameworks necessitates that companies engage actively with ESG principles. The recent implementation of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Union marks significant steps towards integrating these principles into supply chains.
At the ESG&Friends event, Margita Kolcheva, Sustainability Manager at Yettel, underscored the importance of these directives, describing the due diligence process as “a kind of compass for companies, helping them navigate the value chain and become even more sustainable.” Over the past year, Yettel has been formulating a comprehensive plan to involve its suppliers in ESG-related matters, which forms a vital component of its five-year sustainability strategy. Central to this initiative is the Supplier Code of Conduct outlined by e& PPF Telecom Group, which aims to uphold high standards in social, environmental, and ethical practices.
In assessing the environmental and social risks of its suppliers, Yettel has instituted a rigorous evaluation process. Partner companies are required to complete detailed questionnaires concerning their carbon footprint, environmental protection initiatives, labour conditions, and adherence to human rights. Kolcheva noted, “In the surveys, we require suppliers to provide more information than would have been necessary for implementing the directive, but this is important to us as a responsible company”. She highlighted that this approach not only aids in addressing corruption and workplace safety but also fosters dialogue beyond legal obligations.
During her presentation, Kolcheva shared five strategies from Yettel aimed at initiating a sustainable supply chain, reflecting on the experiences gained from supplier assessments and engagements.
Firstly, it is imperative for companies to start the ESG dialogue internally. ‘Preparation Starts Within the Organization’ as Kolcheva emphasises, indicating that employees, particularly in procurement, should be well-informed about the significance of ESG practices. At Yettel, approximately one-third of the procurement team participates in the ESG Academy at Sofia University “St. Kliment Ohridski”, training them to handle supplier interactions proficiently.
Secondly, establishing ‘Personal Contact’ with suppliers has proven instrumental. Yettel discovered that initial engagement through standard emails rarely yielded positive results, prompting the company to shift towards personal meetings. This approach aims to inform suppliers of the significance behind ESG practices, thereby fostering trust and encouraging long-term partnerships.
The third strategy promotes ‘Realistic Expectations’, recognising that many suppliers may not immediately meet ESG standards. Kolcheva articulated that responses like “I don’t know” or “I don’t have such a document” should be considered acceptable as it signifies a willingness to grow. She stated, “This is truly a marathon, and my appeal is to start as early as possible, so you have time to improve together with your suppliers”.
Furthermore, Yettel intends to provide ‘Support for Small and Medium Enterprises’, acknowledging that smaller companies frequently encounter challenges in meeting ESG benchmarks due to limited resources. The larger firms therefore have a responsibility to engage these suppliers through partnerships rather than imposing unattainable demands.
Lastly, the principle of an ‘Individual Approach for Better Results’ recognises the variance among suppliers. Kolcheva noted that uniform ESG requirements could inadvertently hinder smaller suppliers from compliance, reinforcing the necessity for flexibility in expectations.
According to Kolcheva, approximately 90% of Yettel’s carbon footprint is attributed to its suppliers’ activities and the subsequent use of its products by consumers, highlighting the urgency for collaborative efforts in achieving sustainability. The overarching notion is that a sustainable supply chain cannot be realised in isolation; it requires shared accountability and a forward-thinking strategy, revolving around open communication and mutual commitment throughout the value chain.
Source: Noah Wire Services
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