TD spent $4.4 billion on goods and services from suppliers across North America in 2010.
We have a North American Strategic Sourcing Group that is responsible for setting out the overall framework for supplier selection and management at TD. This group uses a disciplined process for the selection of significant suppliers and provides support and expertise to all TD businesses for their sourcing initiatives, assisting with evaluating, negotiating and structuring supplier arrangements both before and after contract awards.
Suppliers are screened according to wide-ranging criteria, including their social and environmental responsibility. We consider their privacy and security policies and standards, insurance coverage, ethical standards, equal opportunity and non-discrimination policies. TD uses a policy that addresses the environmental performance of suppliers and the products we purchase from them.
TD also has supplier policies including Outsourcing and External Supplier Risk Management policies in Canada and a Supplier Risk Management Policy in the U.S., which collectively outline a comprehensive due diligence process for supplier relationships and arrangements, including conflict of interest considerations, technology risks and a supplier’s culture and compatibility with our Guiding Principles, business objectives, strategies and service philosophies.
Sustainability Rating Pilot
As supplier relationships become more global, we recognize the need for increased governance. To help manage and monitor the activities of our suppliers we are conducting a pilot with a sustainability rating agency focused on supply chain management.
The agency assesses suppliers against a set of criteria that are aligned with the UN Global Compact, Global Reporting Initiative and ISO 26 000 and cover 21 environmental, social, ethical and supply chain sustainability indicators. The pilot has a two-fold objective:
- To provide TD with sustainability assessments for approximately 20% of our supplier spend; and
- To promote continuous improvement as we better understand TD’s own assessment against the rating criteria.
A Fair and Transparent Process
The selection methodology we use when sourcing is designed to be fair and transparent for our supplier community. Suppliers that are not successful are offered the opportunity for a debriefing session so they may better understand the rationale for our decision and take steps for improvement if necessary.
Currently, we do not survey suppliers on their overall satisfaction in doing business with TD; nor do we track or set requirements for spending on local suppliers at our major locations of operation.
We look for suppliers who share our environmental values. Our Environmental Procurement Policy includes environmental criteria and performance standards that our suppliers must meet.
During the RFP (request for proposal) process, suppliers are asked to complete a questionnaire describing their own environmental policies, management systems and recycling practices. The completed questionnaires may be referred to TD Environment, who provide recommendations on supplier selection, based on environmental performance.
In 2010, we achieved our goal of using a minimum post-consumer recycled content of 30% in copy, print and fax paper.
We have also been working with our office supply vendors in their development of a “sustainability index” to make the purchasing of green office products easier to understand and apply.