Year to March 31st 2008 NHS Supply Chain...

Year to March 31st 2008NHS Supply Chain Sustainability Report

...An introduction to our Sustainable Development Agenda

Delivering value to the NHS


Contents

1. Chief Executive’s Welcome

2. Who is NHS Supply Chain?

3. Sustainable Development

4. Sustainable Operations

5. Sustainable Procurement

6. Social & Community

7. Performance Highlights

8. Assurance

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Chief Excecutive’s Welcome


Welcome to our first Sustainability Report. We have put this report together to enable us to share with you the efforts we are making to identify, measure and manage the impacts our business has on both the environment and society.

Our agenda is in its infancy and we freely admit there is a long way to go in some areas. In others, such as the consideration given to the environmental impact of our operations, we have made great headway in implementing initiatives that have resulted in tangible impact reduction. We are working hard to ensure that sustainability becomes an integral part of our day to day business activities.

During this report, we will share with you our programmes, progress and future objectives.

We welcome any feedback you may have on this report. Please direct any comments to our Sustainability Manager, [email protected]

Eddie AstonCEONHS Supply Chain

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Who is NHS Supply Chain?

NHS SC is part of the DHL Exel Supply Chain (DESC).

The Express part of the business provides courier and express services to businesses and private customers. It can draw on the world’s most extensive network, embracing 220 countries and territories. The business is structured according to the regions in which we operate: Europe, Americas, Asia Pacific, EEMEA.

Within the Global Forwarding, Freight business, we carry goods by rail, road, air and sea.

DHL ranks amongst the world’s leading providers of air and ocean freight, contract logistics and overland freight transport in Europe.

Together, we are the worlds leading logistics company, with 500,000 employees in almost every major community on planet earth. As such, we recognise our responsibility to use our core compotencies to benefit society and protect the environment.

DPWN are listed in the FTSE4Good Index, KLD Global Climate 100 SM Index & the Global 100 Most Sustainable Corporations in the World.

DPWN produces its own Sustainability Report. Therefore, this report focuses purely on NHS Supply Chain.

NHS Supply Chain

As of 31st March 2008, NHS SC employed 1,652 people throughout its organisation. It has six main distrubtion centres in Alfreton, Bridgewater, Bury St Edmonds, Maidstone, Normanton and Runcorn. During 2008, a further distribution centre will be opened in Rugby.

NHS SC provides a range of services to NHS trusts including procurement, logistics, e-commerce, customer & supplier support and customised supply chain solutions. We aim to make a difference to the NHS by creating new value in the supply chain.

NHS SC’s activities are regulated by both NHS Business Services Authority (NHS BSA) and DHL, with a robust governance structure.

NHS Supply Chain is owned and managed by DHL. DHL‘s parent company is Deutsche Poste World Net. DHL is split into three clear divisions, Global Forwarding, Express and Supply Chain & Corporate Information Solutions.

!DPWN Company Structure (part)

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Our Team

Sustainable Development

To manage the work streams effectively, we have a team of people with responsibility for sustainable development:

Sustainable development is high on the agenda at NHS SC. Within the first few months of its inception,NHS SC worked closely to develop a Memorandum of Understanding now with the NHS Business Services Authority (NHS BSA) to enable us to support Government policy on programmes such as ‘Sustainable Development in Government’ (SDiG) which was announced in June 2006.

Our agenda is aligned to Government SOGE targets where appropriate but as these are aimed prinarily at office based operations, some targets were modified by agreement to be more relevant to NHS SC operations.

We have developed a sustainable development strategy and a range of policies to help us deliver results that support Government targets, such as the UK’s objective to become a European leader in sustainable procurement.

DHL operates a global Climate Protection Programme; ‘Go Green’. Go Green has been translated locally by all companies within the group. This report focuses on NHS SC’s sustainability agenda which encompasses DHL’s programmes, Government programmes and it’s own.

NHS SC’s sustainability programme embraces three key areas:

• Sustainable Operations;• Sustainable Procurement; and • Social & Community activities

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Sustainable Operations

Since August 2000, NHS SC (formerly NHS Logistics) has improved its environmental performance through certification to ISO 14001, the International Environmental Management System Standard. Having a systematic management system in place ensures that we are working towards our Government environmental targets and that we consider the environment in our day to day activities. Improving environmental performance not only ensures we are doing our bit to make a cleaner and healthier environment but it also makes good business sense. Reducing waste to landfill, energy consumption, waste arisings and improving fuel efficiency of our vehicle fleet all reduce costs. ISO 14001 is in place at all 6 of NHS SC distribution centres.

Government TargetsIn 2005 the Government published ‘Securing the Future’ which set out its strategy on Sustainable Development. Within the document the Government defines ‘Sustainable Development’ as ‘ensuring a better quality of life for everyone, now and for generations to come’.

Our annual environmental management programme covering the period April 2007 to March 2008 set objectives and targets to improve our environmental performance in line with:

• ‘Targets for Sustainable Operations on the Government Estate’, • Ensuring we are managing our significant environmental impacts; and • Working to support the wider DHL environmental initiatives.

Our programme included targets in the areas of energy, waste, transport, water, procurement, communication, and training & awareness.

A Memorandum of Understanding was developed between NHS SC and NHS Business Services Authority to formalise and monitor our work in this area. Through quarterly meetings, performance is reviewed and reported against agreed criteria:

• Climate Change & Energy • Sustainable Consumption and Production• Biodiversity• Additional Initiatives• Sustainable Procurement

Monitoring our progress

Our Environmental Management Programme has been monitored internally since October 2007 through the Environmental Steering Group. Representatives from key areas of the business including HR, Operations, Sustainability, Environment & Compliance attend the meeting on a quarterly basis.

Aims:NHS SC aims to ensure that it minimises the adverse impact on the environment of its operations by:• Reducing the use of natural resources and raw materials in all activities• Improving water, energy and fuel efficiency• Reducing emissions, waste and pollution

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Sustainable Operations Continued

!The chart shows the most common non-confrormaties and observations. All issues arising from these audits have been reviewed and actioned.

The Distribution Centre Health, Safety and Environment (HSE) Advisors also complete monthly site environmental checks covering site management and waste disposal issues. In addition Environmental Review Meetings have taken place at all sites with the Distribution Centre Controllers and HSE Advisors to:a) identify site specific environmental improvements;b) refer to monthly data on utility readings and waste tonnage by type.

NHS SC received four Third Party external surveillance visits from United Registrar of Systems Ltd across four distribution centres during the period which raised four issues i.e. two discrepancies, one potential non-conformance and one opportunity for improvement, all these issues have been addressed. The Certification Body – United Registrar of Systems Ltd is also subject to audit by the Accreditation Body – United Kingdom Accreditation Service (UKAS).

As part of the requirements of ISO 14001 a programme of internal audits were conducted to monitor both site performance and compliance with the environmental management system.

The results of the audit covering July 2007 to December 2007 are illustrated in the chart below:

COSHH storage

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Progress against key objectives April 2007 to March 2008Below is a table summarising progress against each of the objectives:-

The Environmental Management programme is monitored on a quarterly basis through the Environmental Steering Group.

EnergyEnergy consumption is measured and reported monthly. Our distribution centres in Alfreton and Normanton have achieved an annual 2% decrease whilst Bury St Edmonds, Bridgwater and Runcorn have seen a 1% increase in consumption over the previous year. Degree days measured over the same period have on avarage increased by 1.45% which indicates outside temperature decreases and correlates to increased utility consumption at these 3 sites.

Energy efficiency measures across the distribution centres has encompassed investment in PIR lighting in staff changing rooms and the installing of time release pressure switches in less frequently used areas such as stairwells to ensure that energy is only consumed as and when its required.

The overall reduction has been achieved through improved management of energy use, ensuring that close down procedures are in use. Capital investment is required to make further reductions in key areas of warehouse lighting and in energy management systems to manage heating boiler controls. This will be progressed further during 2008/9.

Key Objectives

Reduce by 16% the kilowatt hours of energy (gas and electricity) used per 1,000 lines sold by 31st March 2008 from a baseline of 2002/ 2003

Purchase 100% of electricity used in the distribution centres from renewable sources (supply permitting)

Reduce water consumption by 7% across all distribution centres by 31st March 2008, relative to 2004/05 (including box wash use)

Reduce carbon emissions from our fleet vehicles by 5% relative to quarter 1 2005/06 mpg values by vehicle type by 31st March 2008

Increase the amount of waste recycled to 60% of waste arisings by 31st March 2008.

Reduce the waste arisings per 1,000 lines supplied from all distribution centres by 2% by 31st March 2008 relative to 2004 / 2005 levels

Progress

A reduction of 20% per 1000 lines on a 2002/2003 baseline.

100% of electricity is purchased from renewable sources

A reduction of 9% has been achieved but due to changes within the network portfolio, this has been measured on a 2006 / 2007 baseline

A 4.33% reduction was achieved. Work is continuing in this area

Waste recycling amounted to 70% of waste arisings. Therefore exceeding the original target by 10%

Waste arisings per 1,000 lines has been reduced by 58% to 0.0632 tonnes ✓

✓

✓

✓

✓

✓

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TransportIn addition to the miles per gallon improvements the following reductions in kilometres and litres of fuel per annum have been achieved:-

WasteRecycling across all distribution centres has continued to improve by 19%. Runcorn did not achieve its local recycling target so to address this, a new office recycling scheme has been introduced.

Alfreton and Bury St Edmunds have achieved increases in the amount of waste recycled by 19% and 10% respectively. This means that Alfreton now recycles 73% of waste arising and Bury has achieved 63%.

The new waste management contract with DHL’s Environmental & Compliance Solutions business was introduced just before the end of the year, timely & accurate data will provide a sound base from whichto take this forward.

WaterThe amount of water used per tote box washed continues to vary greatly across all distribution centres. An average consumption of 6.5 litres of water is used to clean one tote box against a target of 4 litres.

Measures are in place to make greater use of tote boxes and secondary packaging to reduce both tote box usage and hence water consumption. Initiatives at Maidstone distribution centre have involved restricting the number of tote boxes used to 540 per day and instead, using secondary packaging. Water usage for tote wash purposes has decreased by 2m³ or 2,000 litres.

The use of water within the tote box wash machines accounts for 39% of the total water used across all distribution centres. Regional Operations Managers are investigating the differences across sites to enable us to share best practice to reduce water consumption across the business.

Initiative• Miles avoided through the introduction of backhaul

arrangements

• Reduced fuel usage through the introduction of

backhaul arrangements

• Reduced C0² sub-script emmisions as a result of fuel

reductions by backhaul arrangements

Impact

152,813 miles

645,826 litres

1,434,946 kg

Programme• Improved MPG travelled on

2007/2008 usage of 14 mpg

• Reduce fuel usage across

distribution fleet by use of

nominated carriers, on-going

vehicle utilisation

• Improved carbon emission reduction

by 2% on 2007/2008

Reduction

0.072mpg

95,985 litres

451,736 kg

-1.30%

-4.18%

-4..18%

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• 204,000 plastic vending cups have been recycled and are then turned into various stationary items such as pens, pencils & rulers and sold by the recycling.• A recycling rate of 1500 drinks cans per month

Environmental Management SystemThe ISO 14001 (2000) Management System was reviewed during the course of the year. NHS SC’s Environmental Policy has also been updated. Operational procedures are updated annually by the Environmental Steering Group. The register of Environmental Aspects and Impacts was reviewed tore-assess the significance of our environmental impacts and to ensure that where the impact is considered to be ‘significant’, NHS SC has direct control over it, and it is considered in the overall Environmental Management Programme.

The Register of Legal and Other Regulations were kept up-to-date using Croner’s Environmental Handbook as our source of information. Changes in operational procedures were made to record any correspondence of an environmental nature, in accordance with the environment regulations 2004. In the year to March 2008, twenty four pieces of correspondence were received, responded and closed.

We have now set environmental objectives for 2008/09 within our Sustainable Operations Programme which will maintain progress against the key areas previously identified. Work will continue with each distribution centre to achieve site specific targets and we are confident, with the other actions identified in the management programme that NHS Supply Chain will continue to show improvement in its environmental performance.

Additional AreasAs well as the key targets within the business plan we also had some additional areas within our Environmental Management Programme. Progress on a number of these is given below.

Training and AwarenessDuring 2007/8, the following initiatives have been progressed:

HSE advisors delivered ‘introduction to environment’ as part of the operational induction programme to all new starters. During 2008/9 this will be extended to cover all parts of the sustainable development agenda.

The local environment team at Maidstone distribution centre have achieved the following:

Created and distributed environmental awareness posters with different messages for the notice boards sporting our very own Eco Jo as designed by employees. Eco Jo appears on all environmental related communications.

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Increase the % of waste recycled from our distribution centres to 65% of waste arising by 31st March 2009. This target has been exceeded during the year to March 31st 2008 so will therefore be reviewed and updated accordingly.

Reduce total waste arising from all distribution centres by 2% by 31st March 2009 relative to 2008 / 2009 levels

Reduce the kilowatt hours of energy (gas and electricity) use from our distribution centres per 1000 lines supplied by 18% by 31st March 2009 relative to 2002 / 2003 levels

Review projects that require capital investment to reduce energy consumption in areas such as warehouse lighting.

Reduce water consumption by 8% per employee across all distribution centres by 31st March 2009 (including tote box wash use).

Reduce carbon emissions from our fleet vehicles by 31st March 2009

Reduce the environmental impacts of staff travel through implementations of Green Travel plans where possible.

Ensure we that communicate with stakeholders and work with them where appropriate through implementation of internal and external communications plans.

Ensure we are complying with responsibilities under the waste electrical and electronic equipment (WEEE)regulations

Ensure that the SSSI at the Maidstone Distribution Centre is managed according to Natural England Standards

Instate updated environmental training for Health Safety and Environmental Advisors to cascade down to staff

Establish NHS SC Scope 1 & 2 carbon footprint during 2008.

Waste reduction

Energy management

Water management

Transport

Staff travel

Communication and working with Stakeholders

Compliance with the Waste Electrical and Electronic Equipment Regulations

Biodiversity

Training and development

Participate in the DPWN’s GoGreen Climate Protection

Programme

2008/09 TargetsEnvironmental Aspect Aim and objective

The 2008 / 2009 targets that we will work towards during the coming year are detailed in the table below. Progress will be reported in our next annual sustainability report.

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Sustainable Procurement

Our challenge as an organisation is to incorporate sustainable procurement in to day to day activities so it becomes the norm and not the exception. We have begun to do this through achieving level 1 of the flexible framework and implementing relevant OGC quick wins: both of which are targets within MOU.

As there can naturally be an overlap between of sustainable and ethical procurement practices, we have interpreted the key phrases below for the purposes of our sustainable procurement agenda:

• Sustainable Procurement:A process where an organisation meets it’s procurement needs whilst considering external social, environmental and economic factors (in line with SPTF).

• Ethical Sourcing: (a sub-set of sustainable procurement)The assumption of responsibility by a company for the labour and human rights practices within its supply chain (as defined by the Ethical Trading Initiative).

• Fairly Traded:Products purchased after direct negotiation with the grower/producer to establish a ‘fair price’ for the product, for example - coffee, buyers are committed to paying a price and following procedures which meet the needs of third world producers, for example small growers even when the world market is below that price, to ensure a ‘living wage’ can be paid to workers.

Our agenda is still in its infancy, and has so far concentrated primarily on ethical sourcing. We have been focused on establishing contact with suppliers both directly and through trade associations to understand the supply chain in relation to points of maunfacture and increase visibility beyond first tier suppliers. In particular we are working with the Association of British Healthcare Industries on our baseline questionnaire and also the British Medical Association in work relating to its recently published briefing paper: Ethical Trade in Surgical Instruments: bringing change to the supply chain.

For a lot of suppliers to the NHS, this agenda is relatively, if not completely new and our focus for 2009 is to continue to build relationships to ensure we satisfy Government requirements to procure ethically in the most efficient way possible by avoiding duplication of effort.

Major Achievements

• Introduced a Code of Conduct that suppliers must adhere to• Issued a baseline questionnaire to assess ethical standards across our top 45 and surgical instrument first tier suppliers• Commenced work with the Association of British Healthcare Industries (ABHI) to actively work with suppliers to ensure the baseline questionnaire addresses issues raised by its members and• Working with Ethical Trading Initiative and PASA to help develop an ethical procurement framework for both trusts and NHS SC to benefit from• Confirmed our participation in the work being driven by the British Medical Association (BMA) in relation to Ethical Trade in Surgical Instruments; bringing change to the supply chain.

Aims:NHS Supply Chain aims to reduce as far as possible, adverse environmental and social impacts occuring during the life cycle of products procured from manufacture to disposal - and ensure sustainable value for the NHS via a range of initiatives including:• Delivering specialist training to our procurement team• Intergrating an analysis of social and environmental impacts into all our procurement programmes• Working closely with suppliers during the procurement process to reduce the environmental impact of product aquisition

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Sustainable Procurement Continued

What is the Red Tractor Mark?

4. NHS Supply Chain promotes and encourages ‘best in season’ to ensure that the best quality and the freshest local produce is available for customers all year round. NHS supply chain has clear visible procurement calendars that detail what products are ‘best in season’ and when so that customers can actively ask for a specific commodity.

Focus on FoodNHS Supply Chain’s food team has made significant progress in this area and believes that working with suppliers in this way will lead to more cost effective long term supply routes.

Tenders are constructed and awards are made based on suppliers who can actively demonstrate that they have a good balance of both financial and non financial criteria in accordance with OJEU procedures. Several initiatives have been implemented to underpin the overall procurement strategy.

• SMEs feature heavily in NHS Supply Chain’s procurement landscape. SME’s are an integral part of ensuring that local employment supports the local economy and infrastructure. NHS Supply chain welcomes all enquiries from SME’s who have an equal opportunity of being awarded business as that of a large multi-national company.

• Reducing miles travelled by products reduces CO2 emission reduction through shorter journeys. This also reduces costs and is a key feature in NHS Supply Chain contracts. In some categories, regional and local suppliers sit under a national framework agreement, ensuring that customers can order in the confidence that their delivery is cost effective and environmentally friendly, through delivery consolidation where appropriate.

• NHS Supply Chain encourages its suppliers to demonstrate good farming methods, to show that they actively support or are actively working towards schemes designed to promote good farming standards. These standards ensure that the food produced is of a high quality and promotes the protection of the environment through Integrated Crop Management. In addition to assured produce, NHS Supply Chain encourages the membership of Assured Foods Standards which manages the Red Tractor mark. This ensures suppliers maintain food hygiene standards as well as promoting good practice in animal welfare and protecting the environment. The standard covers chicken, pork, lamb, beef, turkey, fruit, vegetables, salad, sugar and dairy.

What is Integrated Crop Management?

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The Red Tractor logo tells customers that food has been transported, produced, processed and packaged to a rigid set of assured standards. It also offers an endorsement of origin. All Red Tractor business are independently inspected to ensure that those standards are upheld throughout the food chain. In turn Assured Food Standards (AFS) govern the Red Tractor by licensing all those who use the mark. The Red Tractor can only be used by AFS licence holders and only on food that meets theRed Tractor standards.

Integrated Crop Management (ICM) is a “whole farm” system which involves managing crops but respecting the environment in a way that suits the local soil and climate. It safeguards a farm’s natural assets in the long term.

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All tea purchased through NHSSC is ethically sourced. 140 million tea bags are purchased each year, covering a range of certifying bodies such as The Ethical Tea Partnership, The Rainforest Alliance and Fair Trade.A range of fruit juices are also Fairly Traded.

What is The Ethical Tea Partnership?

• NHS SC support fairly trade initiatives to ensure that farmers in developing countries may also have a sustainable future. NHS Supply Chain deals directly with growers where possible to ensure that the supply chain is efficient and each link is cost effective.

FAST FACTS

KENCO ANNOUNCES MAJOR EXPANSION OF PARTNERSHIP WITH RAINFOREST ALLIANCE

Kenco recently announced a major expansion of its work with the Rainforest Alliance which means that 75% of the beans for its entire freeze-dried coffee range is now sourced from Rainforest Alliance Certified (TM) farms. Kenco’s ultimate goal is to source its entire coffee range, which includes instant, roast & ground and foodservice coffees, from Rainforest Alliance Certified (TM) farms by 2010, as supply becomes available.

What is The Rainforest Alliance?

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The Ethical Tea Partnership exists to promote social responsibility in the tea trade. Its objective is to verify that, as a minimum, producers comply with local laws, union agreements and some international standards. This is validated by an independent monitoring programme open to all estates that supply its members.

The Rainforest Alliance is an independent international environment organisation that works with farmers to guide them towards sustainability, making a real difference to the lives of future generations. The Rainforest Alliance approaches sustainable farming in a holistic and balanced way by focusing equally on the environment, ethics and economics.

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What is Fairtrade?

Fairtrade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers and workers who have been economically disadvantaged or marginalised by the conventional trading system. Fairtrade is a tool for development that ensures disadvantaged farmers and workers in developing countries get a better deal through the use of the international Fairtrade mark.!

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Cadbury support the Cocoa Partnership, which is an ethical sourcing partnership between Cadbury and the farmers

Source: Cadbury’s

Cadbury announced the establishment of the Cadbury Cocoa Partnership to secure the economic, social and environmental sustainability of around a million cocoa farmers and their communities in Ghana, India, Indonesia and the Caribbean through:• Long-term commitment to improving farmer livelihoods and farming communities• Direct farmer involvement alongside NGO partners and governments• Support pledged by the Ghanaian President and the United Nations

This ground-breaking initiative, which will be carried out in partnership with the United Nations Development Programme (UNDP) and other partners, marks 100 years since Cadbury brothers first began trading in Ghana and aims to holistically support the development of sustainable cocoa growing communities.

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The sugar beet used in Silver Spoon sugars is sourced locally, with minimal “food-miles”, the avergae transport distance from farm to factory is only 30 miles. Source: Silver Spoon

The majority of the wheat used in Weetabix comes from sources local to the production facility, embracing the reality of “low food miles”. Source: Weetabix Paterson Arran is an independent food company in the UK who addresses the growing environmental concerns of palm oil harvesting. In the last few years, 90% of the rainforests in South East Asia have been destroyed as a result of palm oil harvesting. The destruction of these forests, which are home to orang-utans, is threatening their very existence. As with all of Paterson Arran’s palm oil free products, the Giant Cookies range carries an orang-utan friendly label on-pack and environmental information.

Source: Paterson Arran

These are just a few examples of sustainable considerations made by some suppliers of products to NHS SC.Procurement

SUSTAINABILITY PRINCIPLES IN ALL CATEGORIES

NHS SC discourages the use of unnecessary packaging whenever or wherever possible. In addition the use of recyclable or bio degradable packaging will assist suppliers in scoring highly on tender exercises. A recent packaging study at our Alfreton distribution centre has identified an opportunity to try to work in partnership with some of our suppliers to reduce the amount of packaging used during the course of 2009.

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In most cases, NHS Supply Chain deals with customers and suppliers electronically to reduce the amount of paper used.

Sustainable procurement is a key component of the Governments Public Sector Food Procurement Initiative. It’s a healthily and efficient way of working for any supply chain. NHS SC’s approach to sustainable procurement was recognised in a recent document produced by BPEX for a House of Lords select committee where it stated NHS Supply Chain’s commitment to purchasing British pork was the highest of any public sector organisations.

NHS Supply Chain remains committed to sustainable and ethical procurement and will continue to drive standards forward under the ethos of continuous improvement.


2008/09 Targets• Roll-out the baseline questionnaire to increase visibilty within the supply chain in relation to sustainable procurement

to the full supply base working with trade organisations and suppliers directly

• Complete the generic risk assessment to prioritise future work in this area

• Train staff in the use of PASA’s Sustainable Procurement Risk & Opportunity User Tool (SPROUT)

• Implement PASA’s sustainable procurement risk of opportunity user tool (SPROUT) as a standard sustainable

procurement consideration across all categories

• Achieve level 2 of the flexible framework

• Continue to participate in external working groups to develop our internal agenda and support external initiatives.

• Work with suppliers to identify opportunities to reduce pkg

• Implement relevant Quick Win’s.

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Social & Community

Aims:NHS Supply Chain aims to show its commitment to our local communities and wider society by:

• Encouraging pride in our business• Developing our employees’ skills and core competencies• Encouraging and rewarding employee engagement at a national level• Supporting local communities and raising our profile within our local areas.

NHS SC currently support the charitable schemes operated by the DHL UK Foundation. The Exel Foundation supports DPWN’s international charities such as Unicef, but also provides opportunities for employees to support national or local charities that are particularly close to their hearts, through its ‘Match It’ programme.

INITIATIVES

Match It!The Exel Foundation is an independent charity that provides opportunities for employees to support national or local charities that are particularly close to their hearts, through its Match It! programme. Match It! provides employees and DHL pensioners with an opportunity to have their fundraising and volunteering efforts for UK registered charities, such as schools and not for profit community organisations (e.g. youth clubs) matched.‘Match It!’ works in two ways:• Employee groups who raise funds for charity can receive matched funding up to £1,000 or £2,000 if fundraising for children or young people and up to £1,000 for volunteering.• Individual employees can receive matched funding for up to £500 or £1,000 if fundraising for children or young people and up to £500 for volunteering.

During the year, NHS Supply Chain staff raised £11,713 for around 30 different charities of their own choice.

Outward Bound TrustThe DHL UK Foundation also works with Outward Bound. The Outward Bound Trust (OBT) works to give disadvantaged young people access to an Outward Bound experience in order to fulfil their potential through challenging outdoor experiences, raising self-esteem and preparing them to face the future with confidence.One member of staff was given a week off work to participate in the programme.

Trucks & Child Safety (TACS) schemeUnder the TACS scheme, employees, particularly drivers have the opportunity to train as demonstrators. Demonstrators teach school children from ages 7-11 on road safety and the dangers of large heavy goods vehicles. Trucks are taken to primary schools as key visual aids to a demonstration on safety around large vehicles.

Although transport for NHS SC is currently outsourced, we have linked into the scheme by providing ‘buddies’ from within NHS SC to take part in the training required and accompany other DHL business units on demonstrations.

Offender Training and Employment ProgrammeDHL provides training, mentoring and employment to offenders in the UK, twinning prisons and young offender institutes with sites. The aim of the scheme is to provide offenders with opportunities for employment and skills development pre and post release. This has been demonstrated to reduce offending rates on average from 70% to 7%. NHS SC hopes to pilot this programme at one of its distribution centres during the course of 2009.

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Learning & Development NHS Supply Chain is committed to ensuring that its employees fulfil their potential. It has its own internal training department who often use outside training companies and individuals to expand the range and depth of skills for the organisation’s staff. NHS Supply Chain also makes use of the skills provided by its own members of staff to deliver specialised and tailored training sessions.

The Prince’s TrustThe scheme helps disadvantaged young people between the ages of 18 and 25 get back into employment. The Get into Logistics scheme has been successfully piloted within DHL and we will be working with them to learn from their experiences with a view to trialling the programme within an NHS SC distribution centre.

Volunteer Reading SchemeThis programme trains volunteer members of staff to enable them to provide to support to local schools by helping children with their reading. Staff are released from work to conduct regular sessions with small groups of children to allow familiarity and confidence to grow.

GOVERNANCE

PolicyOur Social & Community policy is managed through a Corporate Social Responsibility group representing business units within specified DHL divisions and is implemented through our HR and Communications teams. Progress is reported to the business on a monthly basis.

Monitoring and ReportingProgress against the Community & Social Action Plan will be monitored on an ongoing basis and reports will be submitted quarterly to the Business Services Authority. Communications ChampionsWhilst NHS Supply Chain has a company-wide policy relating to how it communicates with all its stakeholders, the organisation encourages involvement at a local (site) level, through a network of ‘Communications Champions.

The communications champion’s initiative is intended to provide a site-based resource whose role will be to provide a two-way communication channel between the site and the Stakeholder Relations team, giving consistency to both the message and the brand of NHS Supply Chain. The informal network of communications champions is managed by the senior HR business partner for engagement and development.

The role of the Communications Champion is not intended to be a paid but a core part of an employee’s role, however, it does carry with it a number of learning opportunities for the individuals involved as well as benefits to the local site.

Social & Community Continued

2008/09 Targets

• Identify and work with a national health related charity, chosen by our employees.

• Outward Bound 2008 to include NHS SC representatives

• Assess the feasibility of implementing the Offender Training and Employment Programme & The Princes Trust

• Implement the Volunteer Reading Scheme across other participating regions if the initial pilot proves successful

As other initiatives are identified, NHS Supply Chain will endeavour to support those that are feasible.

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There are also a number of DHL initiatives that NHS Supply Chain employees can benefit from:

(a) ‘Headstart’ - this programme is designed to develop highly capable employees who have the potential to go on to achieve senior manager positions. In preparation for a first management position, this programme is a 12 month development programme consisting of eight workshops. Successful candidates achieve an Institute in Leadership and Management level three qualification. For the 12 month duration of the programme, the candidate is seconded into two, six-month placements at other sites.

(b) ‘Next Steps’ - this scheme develops the skill set of current first line managers, to ensure a line of succession to support the growth agenda of the business. It is a 12 month programme that covers a series of management modules. Each candidate is assigned a mentor for the duration of the programme.

(c) My Learning World - is DHL’s own online training resource and has more than 400 resources to help employees to develop their business and management skills. Interactive courses offer more in-depth learning about key business and management subjects. These take between 1 and 4 hours to complete.

(d) Graduate Programme - this programme allows graduates to develop management experience through placements in real operational roles across the business. Support is provided by assigned mentors and graduate buddies. The graduate programme comprises five professional training modules, including a community project, all designed to increase fundamental management skills. This programme is offered annually to people who:• have a minimum 2.2 honours degree• are eligible and willing to live and work anywhere in the UK / Ireland• are flexible and able to relocate anywhere in the UK• are willing to work shifts, and who possess a UK or international driving licence.

(e) Learning Resource Centre – videos, DVDs, CD Roms, training games & kit, activity packs & books can all be borrowed. These cover all management subjects plus personal development e.g. language courses.

(f) Business NVQs - in Administration, Customer Services and Warehouse & Distribution. This is a scheme that offers funded NVQs to staff who have less than five GCSE’s. We gain the funding from the Learning and Skills council via Train to Gain and last year secured £56,000.

Social & Community Continued

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Performance Highlights

In addition to the achievements detailed within the report, a handful to draw your attention to are:

• Six all distribution centres ISO14001 certified

• Maidstone distribution centre received a DHL Environment Award for its efforts in implementing local environmental initiatives;

• Commissioning a hybrid vehicle trial at Park Royal hub;

• NHS SC established its own environmental steering group involving representatives from across the network from all tiers of the workforce;

• HSE advisors delivered ‘introduction to environment as part of the operational induction programme to all new starters; and

• HR induction programme now covers NHS SC’s sustainability agenda

• Achieved level 1 flexible framework

We look forward to updating you again on this years activities in our next annual report. We will have much more to tell you about our carbon footprint work and the other programmes we have mentioned along with details of our work in relation to achieving level 2 flexible framework.

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Assurance

As this is our first report, recognising that we still have a long way to go, we decided not to pursue external assurance verification at this stage.

Due consideration has been given to the AA1000 reporting principles:

• Materiality;• Completeness; and • Responsiveness

and they have been followed as far as we are able at this stage. All data reported is auditable and has been wholly represented.

Once our programme is more established and fully embedded into the business, this decision will be reviewed.

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Year to March 31st 2008 NHS Supply Chain...

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