Our suppliers are our partners — we work with over 1,000 of them globally, dealing with purchases from aircraft and fuel to office supplies and uniforms – across the 189 destinations which we serve. We envision a sustainable supply chain within the Cathay Pacific Group, and working with our suppliers is key to delivering products and services to our customers sustainably.
We work with our suppliers on a supply chain sustainability compliance process as part of our risk management process. Many of our suppliers are companies that also report publicly on their sustainability performance and hold similar values towards corporate responsibility as ourselves.
In order to deliver products and services that are sustainably sourced, we need to work with our suppliers. Developing a sustainable supply chain is a challenge due to the large amount of items we purchase, each with varying specifications. In some cases, we may not have leverage on all our suppliers and have limited influence on the sustainability attributes of these materials. Moreover, our specifications need to meet very strict safety standards, particularly if we are taking these items onboard. We are determined to find solutions to these challenges:
- We participate in best practice sharing sessions locally and internationally: Cathay Pacific was a member of the Swire Sustainable Purchasing Working Group between 2007 and 2014, which looks at synergies within the Swire Group in embedding sustainable purchasing practices in the Swire Pacific companies. We were a founding member of the Hong Kong Green Purchasing Charter in 2008. In 2013, we were also one of the founding participants of the inaugural Sustainable Lifestyles Working Group launched by non-profit sustainability organisation Business for Social Responsibility and sustainability communications firm Futerra.
- We trial and use alternative materials and implement these across the Cathay Pacific Group: We often assess the performance of alternative materials. Once it passes the trial phase, we implement the material across the whole Group. For example, when we decided to switch all office paper to sustainably- sourced material, we assessed different options from recycled paper to paper made from FSC sources. Since our initial purchase of sustainable office paper in 2008, currently the majority of office paper, marketing collaterals in Hong Kong, training materials, inflight magazines and team newsletters have switched to FSC or recycled paper.
- We are developing guidelines and sustainable specifications for a number of items: we developed a number of guidelines that set out the sustainable specifications we need to consider in our purchases. We now have guidelines for airport lounges, IT equipment, paper, plastic and printing. We aim to develop more guidelines to support decision-making with our purchasing team.
Our purchasing practices are of the highest professional and ethical standards. Most of the purchasing requirements for both Cathay Pacific and Dragonair are managed by the Airline Purchasing & Aircraft Trading Department. In addition to our anti-bribery expectations with all our staff, we require our purchasing staff to comply with our additional anti-bribery guidelines outlined in our Purchasing Ethics Policy.
We aim to encourage our suppliers to improve on their sustainability practices through capacity building and sharing knowledge on best practices as part of our approach to sustainable procurement. Our purchasing teams understand the need to consider sustainable purchasing and responsible supply chain practices in buying decisions. We require our suppliers to provide clear, accurate and appropriate reporting of their progress in achieving our Supply Chain Sustainability Code of Conduct objectives.
Supply Chain Sustainability Code of Conduct
Since the launch of our Supply Chain Sustainability Code of Conduct in 2007, suppliers to Cathay Pacific must provide clear, accurate and appropriate reporting of their progress toward achieving our objectives contained in this Code. These include:
- Legal and regulatory compliance
- Environmental management
- No use of forced and child labour
- Appropriate compensation and working hours
- Health and safety in the workplace
- No discrimination against employees
- Upholding human rights in the workplace
- Having high ethical standards
- Extending social responsibility to their subcontractors and service providers
- Maintaining documentation and permitting our inspection
In developing and revising the Code, we took account of the International Labour Organization’s core conventions and other applicable and recognised labour standards, referred and benchmarked against the United Nations Global Compact.
Timeline for Working with Our Supply Chain
Identified the need for a more coordinated approach to sustainability in our supply chain
Developed and launched our Code of Conduct
First questionnaires sent to Hong Kong-based suppliers
Launched online tool for suppliers to complete questionnaire regarding their compliance with our Code. New suppliers are contractually committed to meeting our Code of Conduct
Revised Code of Conduct to include ethics
First publication of the Supply Chain Sustainability Newsletter distributed to local and outport suppliers
Outport-based suppliers asked to complete questionnaire for the first time
Development of a framework for supply chain compliance checking
The Corporate Social Responsibility Code of Conduct renamed as the Supply Chain Sustainability Code of Conduct
It is our goal to ensure that we establish sustainable sourcing practices throughout our operations. We started embedding these practices by understanding the consumption of resources across different business units. To understand how we can achieve our sourcing goals, commonly procured items were identified and areas where there is potential for reduced usage were assessed. More information is provided in the Waste Management section of our report.