World Commerce & Contracting
Climate Impact & Sustainability Data (2020, June-September 2021)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Governance
Governance Achievements
- Initiated reforms to address poor value for money in government outsourcing, including a more rigorous process for deciding whether to outsource.
Climate Goals & Targets
Environmental Challenges
- Poor value for money from outsourcing in some areas.
- Low competition in some service markets.
- Lack of commercial skills in some government bodies to manage outsourced contracts.
- Difficulties in integrating outsourced services.
- Unsustainable outsourcing models in crises (e.g., COVID-19 pandemic).
Mitigation Strategies
- Developed the Outsourcing Playbook for more rigorous outsourcing decisions.
- Insourcing of underperforming services (e.g., probation).
- Government intervention during the COVID-19 pandemic to support key services and contractors.
- Recommendations for improved contract management and commercial skills development.
- Recommendations for better integration of services.
Supply Chain Management
Responsible Procurement
- More rigorous process for deciding whether to outsource (Outsourcing Playbook).
Climate-Related Risks & Opportunities
Reporting Period: June-September 2021
Environmental Metrics
ESG Focus Areas
- Environmental, Social, and Governance (ESG)
Climate Goals & Targets
Environmental Challenges
- Skills development and retention
- Deployment and adoption of advanced technology
- Availability of funding
- Operational workload
- Establishing data to indicate value/contribution
- Salary levels/attracting and retaining talent
- Existing skills
- Inflexible models
- Lack of dedicated and fully-trained resources
- Erratic technology deployment
- Early stage implementation of simplification initiatives
Mitigation Strategies
- Adoption of contract management tools and software
- Skills development
- Development of new or revised terms or standards
- Simplification initiatives
- Increased role in risk management/governance
- Contract analytics
- Segmentation of supplier relationships
- Knowledge management systems
- Revised measurements
- Increased external benchmarks, research