Fair and real cost pricing

Producing consumer goods or food can have a negative effect on people and the environment through bad working conditions, depleted soil and vanishing nature. These social and environmental costs are often not included in the price of products. Working for a better world means paying a fair, real cost price for products.

This is why, from now on, we aim to only purchase products for which the costs of treating the planet and people responsibly are included throughout the entire value chain. By setting an example through our choice of non-monetary prices, we can positively influence the entire value chain, from suppliers to our price winners.

“There is just no other way for us: our mission, vision and company culture all require us to be a frontrunner in corporate social responsibility. On top of that, cooperation in sustainable procurement provides new ideas and business opportunities”, Imme Rog, Managing Director Dutch Charity Lotteries.

Results 2012
 

Code of conduct for suppliers in 2012

In 2010, the Charity Lotteries set themselves the objective of developing a code of conduct for suppliers. All suppliers from whom we purchase more than 10,000 euro worth of goods and services, such as office supplies, coffee, tea but also non-monetary prizes, should commit to this code. Suppliers must satisfy the procurement criteria on human rights and labour, health and safety, environmental impact and ethics. The code is based on internationally accepted guidelines such as the Ethical Trading Initiative, the United Nations Global Compact, the Universal Declaration of Human Rights and the guidelines of the International Labour Organisation.

In 2012, the Charity Lotteries started implementing the code of conduct for suppliers. First step was to ask all our main suppliers to commit themselves to our code. In October that year the Dutch lotteries and Novamedia sent the code to 318 main suppliers and at the end of 2012, already 40% of these suppliers had committed themselves to the code. Additionally, suppliers from the Swedish and British lotteries have also been approached to sign the code of conduct. In The United Kingdom, 32% of significant suppliers have signed the code to date. The People’s Postcode Lottery has also developed a ‘code of conduct tracker’ which monitors if suppliers approach the 10,000 euro spending limit. In November 2012 the Swedish Postcode Lottery sent the code to 43 of its suppliers and received 35 signed codes in return.

“Our code of conduct for suppliers is one tool to tackle both social and environmental issues along the value chain and minimize the negative impact from goods and services. It also forms the basis for closer cooperation with business partners and potential social progress”,

Annsie Kumlin, Head of CSR for the Postcode Lottery in Sweden

 

FSC paper use
 

The Charity Lotteries are approaching their ambition to use only FSC paper. People's Postcode Lottery has increased the use of FSC paper during 2012, with the Direct Marketing team sourcing mainly FSC paper. People's Postcode Lottery have been using solely FSC paper since June 2012. It is the aim of The Dutch Charity Lotteries to carry through the positive trend as well. This will be done by consciously considering which paper (weight and volume) to use for each mailing or activity. And although the Swedish Postcode Lottery already uses 96% FSC paper, they are working on ensuring that all Direct Marketing paper mailings will be FSC in future. Non-FSC stationery paper is the major cause for Novamedia not to meet their target. That is why in 2012, Novamedia worked together with its office supplies vendor to search for sustainable alternatives for the most popular stationary products. The supplier offered an overview of sustainable alternatives which in turn are now the preferred products to order.

Highlight 2012
 

Sustainable prizes: a box filled with organic products

One example of a sustainable prize handed out by the Dutch Postcode Lottery is the 25,000 grocery boxes with 100% organic products of the brand Puur & Eerlijk (‘Pure and Fair’) by the largest retailer in The Netherlands, Albert Heijn. As we have the ambition to hand out more sustainable prizes, we organised a pilot together with Albert Heijn to hand out a box of with healthy, tasty goods to winning participants. It was a success with more than 85% of the boxes being picked up at local stores. Additionally, a charity also benefited as the boxes that were not picked up were donated to the ‘Voedselbank’ (‘Food bank’).

Krijn Smits, Procurement Officer Prizes at the Dutch Postcode Lottery:

The boxes contain products approved by some of our beneficiaries, such as Fairtrade Original, the Animal Welfare Protection Agency and Fairtrade Max Havelaar. Together with Albert Heijn, we have the ambition to make the sustainable choice the regular and easy choice. We are currently evaluating the pilot together. For Albert Heijn, the logistics of this prize is particularly challenging. If we find good solutions for this, I am pretty sure we will continue and expand this cooperation considerably in 2013.”

Sharing a socially aware breakfast

Since moving into the new office in Edinburgh city centre, the team at People’s Postcode Lottery have been treated to breakfast each morning served in the new kitchen space. As well as providing a nutritional start to the day, the team is encouraged to spend time in the kitchen area socialising with colleagues. The food is supplied and delivered by a local organisation called Social Bite, a social business that invests 100% of its profits into supporting charities across the world who aim to tackle various social issues. Furthermore, as we try not waste any food, employees at the Dutch Charity Lotteries are provided a free breakfast if they enter the office before 8 am.

Goals 2013
 

All lotteries and Novamedia

  • To use 100% FSC certified paper

 

Dutch Charity Lotteries

  • 60% of our significant suppliers commit themselves to the code of conduct for suppliers

 

Swedish Postcode Lottery

  • All significant suppliers commit themselves to the code of conduct for suppliers

 

People’s Postcode Lottery

  • All significant suppliers commit themselves to the code of conduct for suppliers

 

Novamedia       

  • All significant suppliers commit themselves to the code of conduct for suppliers by 2015

 

Some of our suppliers have questions regarding our code or refer to their own code of conduct or CSR policy. Together with them, we look for solutions. After all, the final aim of the code of conduct for suppliers is to fully eliminate non-sustainable practices from the supply chain. In 2013 we will develop a registration system in the Netherlands to make sure the status of the different suppliers can be registered and monitored centrally.