£9bn Olympic budget will have ethical basisJuly 2008
Suppliers of products and services for the 2012 Olympic Games in London will have to follow sustainable procurement guidelines.
In autumn the London Organizing Committee of the Olympic Games will publish a Sustainable Sourcing Code covering the 5000 business deals expected to be generated by Olympic procurement, including sponsorship. The code will apply to the entire £9billion ($17.65bn) budget.
The committee has also joined the Supplier Ethical Data Exchange (Sedex), in which members swap information on their contractors' performance. It said joining Sedex, which is already used by about 170 companies, including Cadbury Schweppes, Chiquita Brands and Northern Foods, should improve its ability to manage supply chain risks. Observers expect that licensees and key suppliers, if not already members, will sign up to Sedex.
The code will ask suppliers and licensees of London 2012 to 'identify, source and use environmentally sound and socially responsible practices'. It is not yet finalized but is likely to require suppliers to aim at fulfilling the base code of the Ethical Trading Initiative, an alliance of companies and civil society.
In addition, suppliers will be expected to use products and materials with recycled content, minimize packaging, maximize energy efficiency in manufacture, and ensure that non-polluting and non-toxic materials are used. Businesses are being asked to offer their views on the code's wording.
Sustainable procurement was identified as a priority by the Commission for a Sustainable London 2012, the official assurance watchdog.
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