Purchasing
In 2008, RBC spent $4.7 billion on goods and services from
international, national, regional, and local suppliers of
all sizes.
Goods and Services Purchased
| 2008 |
$4.7 billion
|
| 2007 |
$4.4 billion
|
| 2006 |
$3.9 billion
|
Practices and Highlights
We promote fair purchasing practices and strive to support,
wherever possible, the communities in which we operate. RBC
does not link our client relationships to our vendor relationships,
recognizing that open competition based on value must be the
basis for all successful relationships.
We are a founding member of the Canadian Aboriginal and Minority
Supplier Council. RBC has been a member of the Council's U.S.
affiliate, the National Minority Supplier Development Council,
since 2002. In 2009, we will implement a new responsible procurement
policy, which will increase the due diligence regarding social
and environmental factors in our procurement activities.
Policies
Our Procurement Group is responsible for sourcing significant
products and services. Our procurement policies are inclusive
and aim to promote sustainable business practices and economic
development where possible and appropriate. We consider and
rank social and environmental policies and practices among
other criteria when awarding contracts through our Requests
for Proposal (RFP) process. To maintain the highest standards,
we review our purchasing guidelines annually.
As appropriate to a specific RFP, our Procurement Group may
ask prospective vendors to detail extensive corporate and
financial information, including the declaration of conflicts,
lawsuits or administrative complaints and charges, industry
experience, and references.
When a potential vendor approaches RBC, they are required
to supply us with information about their social and environmental
policies and practices. The results of all inquiries are ranked
and weighted, and are considered when Strategic Sourcing selects
the vendor and/or products. The RFP covers a potential supplier's:
- Labour standards/employment practices
- Occupational health and safety record
- Internal environmental policies and practices
- Human rights performance and record
- External audits/assurance (e.g., AA1000)
- Ability to provide information security/physical security
- Ability to provide accessibility for people with disabilities
(for information technology suppliers re: applications,
software, etc.)
- Manufacturing process, disposal, packaging, product use
and maintenance of the product. After we award business
to a specific vendor, we ask them to sign a legal Supplier
Agreement that includes comprehensive, explicit clauses
covering warranties, indemnities, confidentiality and disclaimers.
Enterprise-Wide Policy
While we subject our purchases to environmental screening,
we recognize the need to formalize an enterprise-wide policy
to address the environmental and social impacts associated
with our procurement activities. In 2008, we developed the
RBC Responsible Procurement Policy (in draft as of October
31, 2008) that will increase the acquisition of environmentally
and socially preferable products and services.
Learn
more.
