Value chain

Supply Chain sustainability

The Supply Chain team at TELUS plays a vital role in carrying out TELUS’ strategic initiatives – collaborating across business units, working with suppliers and service providers ensuring the right products and services are deployed across our network in a safe and cost-effective manner. TELUS selects partners that are in alignment with our values of putting our customers and communities first.

In 2018, we have deepened our third-party relationships, leveraging our distributor capabilities to reduce operating complexity. We brought our warehousing and refurbishment operators under one roof to reduce freight and turnaround times. We have also broadened the portfolio of goods that we are sending for refurbishment, reducing environmental impacts and lowering operational costs.

Supplier Code of Conduct

We award business to suppliers who demonstrate a strong commitment to sustainable development. This involves adhering to ethical, privacy, labour, health and safety, and environmental principles that align with ours and ensure the well-being of our customers, suppliers’ employees, contractors and communities. Our Supplier Code of Conduct (SCOC) is fundamentally aligned with TELUS’ commitment to continue being a leading corporate citizen. All TELUS’ procurement contractual templates, including our standard purchase order Terms and Conditions, include an obligation to comply with the SCOC. The SCOC goes beyond legal compliance, drawing upon internationally recognized standards to advance social and environmental responsibility and business ethics.

In 2018, we relaunched our SCOC to ensure it reflects best in class practices and TELUS’ leadership in this field. A cross functional team of subject matter experts from our Environment, People and Culture, Security, Data and Trust, Sustainability, Legal, and Supply Chain teams were involved in a comprehensive review of the previous SCOC, including a significant effort in benchmarking, to ensure the updated version is best in class and fit for purpose.

The updated version of the SCOC has further granularity around key obligations such as responsible sourcing of materials, including reviews for conflict minerals. More robust language around privacy and information security and a new section on Accessibility and Supplier Diversity has been included to align with TELUS’ sustainability commitments. The SCOC is recognized by our stakeholders as significantly stronger than the previous version and reflective of future state needs.

Monitoring our critical suppliers’ Corporate Social Responsibility

TELUS monitors the corporate social responsibility of its critical suppliers by partnering with globally recognized organizations that offer insights to evaluate a variety of factors within our existing supplier base. In 2018, we worked with EcoVadis using their global sustainability rating system that combines expertise and technology to deliver easy-to-understand supplier Corporate Social Responsibility (CSR) Scorecards. These scorecards address critical issues, including environment, labour practices and ethics on a global scale. TELUS’ critical suppliers are assessed through a questionnaire, sector-based benchmarks and third- party reporting to manage risks, reduce costs and drive innovation in the supply chain.

The scorecard also contains detailed qualitative information, allowing TELUS to easily understand issues and provide clear feedback to suppliers on critical improvement areas.

In 2018, we followed up with 19 critical suppliers who were assessed in 2017. Four of these suppliers were identified as medium risk. We launched a follow-up campaign and initiated corrective action plans to address theme-specific issues. None of the four suppliers identified had deficiencies related to fair business practices.