Prologis collaborates with supply chain to deliver social value

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Prologis UK has formally demonstrated its commitment to social value by requiring all of its suppliers to sign-up to a Supply Chain Social Value Charter (SCSVC)

Launched during Responsible Business Week 2018, the Supply Chain Social Value Charter specifically commits Prologis suppliers to developing and agreeing a Social Value Action Plan (SVAP) built around a set of Themes, Outcomes and Measures (TOM’s).

Since 2012, The Social Value Act has required public authorities to take into account social and environmental value when they choose suppliers, rather than focusing solely on cost; however, this is believed to be the first time a property company has created a Supply Chain Social Value Charter which requires suppliers to actively consider, demonstrate and measure social value at every stage of their involvement with a project.

Maurice Dalton, Head of Project Management for Prologis UK, has been working with the company’s supply chain to deliver this initiative and believes the SCSVC will help capture and demonstrate the already positive contribution being made by Prologis and its supply chain towards local communities and the environment.

Dalton said: “At Prologis we don’t just build industrial logistics parks, we also aim to build long-lasting relationships with our customers and the local community. We have a long-standing and trusted relationship with our supply chain and our Social Value Supply Chain Charter provides a framework in which our entire supply chain can join with us to deliver more value to the communities where we are based and where we are building.

“We knew from our ongoing relationship with our supply chain that many of our trusted partners were already ‘doing the right thing’ when it came to promoting local skills and employment and building safer and greener communities. This Charter is simply a way of strengthening and demonstrating the positive outcomes which arise from our shared mutual values.”

Guy Battle CEO of The Social Value Portal – which helps companies measure and manage the contribution their organisations and supply chain makes to society – added: “As far as I’m aware, no other property company has a supply chain charter specifically related to social value and the fact that this has been enthusiastically embraced by the entire supply chain is testament to the relationship Prologis has built with its partners over the years.

“Building a more sustainable and inclusive society is among today’s most significant challenges and what’s exciting about this initiative is the ability for Prologis and its suppliers to actually measure and attach a financial value to the environmental and societal benefits their combined activities bring.”

Suppliers will develop a Social Value Action Plan which will be bespoke to their business and reflect their specific capabilities. Each supplier will be required to sign-up to a minimum set of commitments and targets for each contract and will have the ability to extend or adapt these commitments as the development or the contact evolves. Commitments might include:

  • creating more opportunities for local employment, training and apprenticeships;
  • creating jobs for those furthest from the job market (eg. Those not in education, employment or training (NEETs) or people with disabilities);
  • engagement with local schools and work placements;
  • volunteering in the community;
  • working with local businesses to help build the capacity of the local supply chain during construction and occupation.

In order for the overall social value of a project to be measured, suppliers will be given access to a social value portal where they can view and manage individual projects and enter data. This data will enable Prologis to evaluate and predict the social value contribution for a development both during construction and throughout the lifetime of the project.

Steven Smith, Managing Director at Benniman Construction said: “The process of feeding information into the social value portal has highlighted just how much we are already contributing to society as a business and has also highlighted some areas for improvement.

“The process really encourages companies to source goods and labour locally and is also helping us identify a charity partner with whom we can build a long-term relationship.”

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