Our Group's life-cycle perspective goes beyond traditional distinctions of direct and indirect environmental impacts. We have adopted a holistic, integrated approach to analyzing all of our organization's activities to ensure we understand and mitigate the effects of our procurement practices.
While sourcing is not particularly relevant to the financial industry, our Group understands that it must take into account the inflows of material and energy to our operations and commercial practices.
At UniCredit, procurement is based on sustainable models: suppliers must meet certain minimum sustainability requirements and are selected in compliance with the standards of various conventions of the International Labour Organization relating to fundamental human rights including child labour, freedom of association, working conditions, health and safety. Suppliers must also comply with the standards of our Environmental Policy. On the supplier level, the criteria are integrated into an overall supplier evaluation system.
UniCredit has been working toward harmonizing its procurement systems to ensure that goods and services acquired by our Group comply with our sustainability and environmental conservation policies.
These changes will be implemented in stages as we extend and expand our current pilot projects, define detailed environmental standards for purchasing, improve our approach to supplier selection, develop training programs for purchasers and product end-users, and expand our dialogue with suppliers.