Sustainable Procument Guidleines

Sustainable Procurement Guidelines

Disclaimer:

These guidelines are provided for informational purposes only and do not constitute legal or professional advice. The user assumes full responsibility and risk for the use of these guidelines. These guidelines are not legally binding, rather they lay out a series of positive practice approaches for Scenic Group and its suppliers to embrace to be able contribute towards the global sustainable development agenda. Any reproduction, distribution, modification, or public display of the content of this document without the express written consent of Scenic Group is strictly prohibited.

Introduction

The purpose of these guidelines is to outline Scenic Group’s approach to sustainable procurement and to provide a clear framework for internal and external stakeholders to navigate, interact with, and apply these guidelines.

Sustainable procurement for us at Scenic Group, is the process of purchasing goods and services in a way that considers the economic, environmental, and social impacts of those purchases whilst maintaining exceptional quality.

These Sustainable Procurement Guidelines apply to both our employees and our suppliers to encourage positive action that seeks to address each of the focus areas defined in the Scenic Group Cherish the Planet Manifesto.

Sustainable Procurement Overview

At Scenic Group we are committed to sustainable procurement when purchasing goods and services through taking into account the economic, environmental, and social impacts of those purchases.

ENVIRONMENTAL

Minimise Impacts

This includes assessing the environmental impact of products or services such as their carbon footprint, water use, and waste generation, and choosing options that minimise these impacts.

Social Responsibility SOCIAL

This includes considering the social impact of products or services such as labour practices, human rights, and diversity and inclusion, and choosing options that promote social responsibility and ethical behaviour.

ECONOMIC

Value for Money

This includes considering the economic impact of products or services such as their cost, quality, and value for money, and choosing options that provide the best overall economic outcome for the organisation.

UN Sustainable Development Goals

The UN Sustainable Development Goals (UN SDGs) are a suite of 17 interrelated global goals.

Whilst our sustainable procurement practices will indirectly contribute to each of the 17 goals, these procurement guidelines have been developed to demonstrate how we can directly contribute towards eight of these global goals.

Our Objectives

Reduce Emissions

Scenic Group is committed to reducing those greenhouse gas emissions associated with our with our procurement practices and supporting the transition to a low carbon economy.

Minimise Waste

At Scenic Group we aim to responsibly minimise waste generated through our procurement activities and contribute towards a more circular economy.

Source Locally

Through sourcing locally Scenic Group is committing to promoting sustainable develop, supporting local economies and creating a more resilient supply chain.

Reduce Emissions

52% of our emissions are indirect.*

The largest contributor to our overall emissions footprint at Scenic are those indirect Scope 3 emissions.

These indirect emissions are not under our operational control but are closely related to our activities.

By working collaboratively with our suppliers using this guideline we can reduce those Scope 3 emissions.

*Based on 2019 data

Reduce Waste

Minimising waste makes sense.

Minimising waste makes sense to us.

As a company we are committed to exceeding our compliance obligations when it comes to managing waste.

By reducing the amount generated in the first place, we are minimising the impacts and the costs associated with managing that waste.

Source Locally

Supporting local economies to thrive.

We believe that maintaining our premium standards can be directly coupled with creating benefit for the local communities that we visit.

Where quality and accessibility can be met, we are committed to using local suppliers.

Not only does this enhance our guest experience and have a positive economic impact for those communities, it can also reduce transport related emissions.

What is our approach to Sustainable Procurement?

Guiding Principles Procurement Factors

Scenic Group Objectives Procurement Streams Engagement

The guiding principles are foundational and underpin Scenic Group's approach to Sustainable Procurement. Our six guiding principles are located on page 12 of this document. Through adopting sustainable procurement practices we can each contribute towards Scenic Groups sustainability objectives and the UN SDGs.

Details of our objectives and the UN SDGs can be found on pages 6 and 7 of this document.

The suite of six procurement factors provide a standard set of considerations relate to all purchases made by Scenic Group and its employees.

Details of the procurement factors can be found on pages 13 through to 16.

Procurement streams are additional considerations for specific types of purchases. Details of the procurement streams can be found on pages 17 through to 49.

We can engage with our suppliers on sustainable procurement through consultation and by asking them to complete the Scenic Groups Supplier Self Evaluation Form. A link to the Scenic Group Supplier Self Evaluation Form can be found here.

6 Guiding Principles

Based on the philosophy of the ISO 20400 Sustainable Procurement Standard, this guideline focuses on six key principles:

Accountability & Transparency

Ethical Behaviour

Through defining our sustainability objectives and communicating these with our stakeholders we are promoting transparency and are committed to holding ourselves to account.

In line with our Code of Conduct we are committed to conducting all our activities in an ethical and responsible manner.

Sustainability

As an organisation with a global footprint, our procurement activities are designed to support sustainable development through conserving resources and promoting social and economic development within the regions that we operate.

Collaboration & Engagement

Continuous Improvement

With this guideline and our supplier evaluation form we are committed to engaging with our suppliers and other key stakeholders to promote sustainable procurement practices.

At Scenic we are committed to the principle of continuous improvement and regularly review of our procurement activities to ensure that we are meeting our sustainability objectives.

Integration

We are committed to ensuring that sustainable procurement considerations are integrated into our business and considered at all stages of the procurement process.

Procurement Factors

This section focuses on six key sustainable procurement factors that are applicable to all types of Scenic Groups' purchasing activities.

QUALITY

SAFETY

COMPLIANCE

Product Quality

Long-term durability

Customer satisfaction

Product safety

Worker safety

Transportation safety

Legal compliance

Ethical behaviour

Managing risk

FAIR

LABOUR Workers rights

Worker wellbeing

Supply chain transparency

LOCATION

Local economies

Transportation emissions

Supply chain transparency

DIVERSITY & INCLUSION

Supplier diversity

Inclusive practices

Measuring impact

PRODUCT

LIFECYCLE

Carbon footprint

Circularity

Repairability

Quality and Safety

At Scenic Group we will not compromise on safety or quality.

Product Quality

It is important to ensure that the product or service do not pose a risk to the users or the environment. Check the product safety standards and verify with your supplier that testing and monitoring is undertaken.

Durability

Customer Satisfaction

Consider the lifespan of the product and the types of materials used during the production process. Selecting products that are less likely to require replacement will contribute towards reduced waste.

Does the product or service meet Scenic Group expectations. This can be assessed through assessing supplier performance and seeking customer feedback.

Product Safety

Ensure the product or service meet the required quality standards. Verify with the supplier that they have conducted the necessary quality assessments.

Worker Safety

Consider the safety of the workers involved in the production of goods or provision of services. Assess the suppliers compliance with health and safety standards and verify workers receive appropriate training.

Transportation Safety

Consider the safety of transportation methods used. Assess transportation safety standards and verify suppliers have implemented safety measures such as secure packaging and handling.

Managing Risk

Manage risks related to legal and ethical requirements through conducting risk assessments on suppliers and the supply chain. Implement risk management strategies to address identified risks.

Supply Chain

Transparency

Promote supply chain transparency and accountability through requesting suppliers to disclose supply chain practices through the Scenic Supplier Self Evaluation Form.

Transparency practices through the Scenic Supplier Self Evaluation Form.

Impact to disclose supply chain practices through the Scenic Supplier Self Evaluation Form.

supporting local communities though using local repair services and businesses that in turn will create job opportunities and promote skills development.

Fishing & Harvesting

Processing and Packaging

Transportation & Export

Import & Distribution

Fishing activities often involve the use of fossil fuel-powered vessels, which emit greenhouse gases (GHGs) during their operation.

Retail & Consumer Purchase

Consumption & Waste Management

Processing facilities require energy for cleaning, cutting, and packaging the fish. Processing can generate waste such as fish trimmings, scales, and packaging materials.

Case Study: Product Lifecycle of a Fish

Transporting fish overseas involves the use of transportation modes like shipping or air freight, which contribute to energy emissions and carbon dioxide (CO2) emissions.

Consider you are on board a vessel in Portugal and you include on the menu Australian Barramundi.

Storage and distribution facilities, such as warehouses or refrigerated storage, require energy for temperature control and maintenance.

What are the processes that occur during the sourcing, delivery and disposal of waste associated with choosing that fish?

Retail stores and foodservice outlets consume energy for refrigeration, lighting, and other operations.

Proper waste management is essential, including responsible disposal of fish scraps and packaging waste.

Then consider sourcing a local Sea Bass from Portuguese waters.

How many of the processes can be eliminated to reduce energy, emissions and waste?

High End Experience

As a provider of luxury cruises and tours at Scenic Group we procure a wide range of goods and services to provide a high-end experience for our guests and support our everyday operations.

We have separated these goods and services into five key procurement streams:

Food and beverages

Hospitality and client services

Technology and equipment

Professional services

Supplies and materials

For ease of use this guideline document focuses on general sustainability considerations that apply to all procurement streams and then specific aspects for each stream separately.

1.Food and Beverage

"Working with our suppliers we offer high-quality dining options and premium beverage choices to our guests."

We are committed to procuring fine ingredients that are locally sourced to create gourmet menus that catch the essence of the region.

Seasonal

Work with local suppliers to provide insight into what is currently in season. Build relationships with local suppliers who can provide seasonal produce.

Plan menus based on seasonality, incorporating seasonal fruits and vegetables and providing education to guests about the benefits of eating seasonally.

Offer a rotating menu that changes with the seasons allowing for the use of fresh seasonal ingredients that are at their peak.

Fresh and Local

Reduce transport emissions through planning menus based on local and regional cuisine.

Develop partnerships that promote local entrepreneurship and provide education on safe work practices.

Identify local communities and charities that would benefit from receiving excess food supplies. Grow ingredients onboard, including fresh herbs, that complement and contribute to our cuisine.

Responsible

Ensure animal welfare considerations are integrated into menus and culinary practices. Prioritise products that meet animal welfare certifications.

Reduce food waste through increasing a-la carte dining options and incorporating more live stations into existing buffets.

Reduce waste through sourcing goods with minimal packaging, donating excess food to local charities and composting food waste.

Conscious Beverages

Select suppliers who source their ingredients ethically, such as fair trade coffee, organic teas and sustainably harvested fruits and vegetables for juices and cocktails.

Procure certified energy efficient beverage equipment such high efficiency coffee makers, refrigeration units and dishwashers.

Source beverages locally to reduce the environmental impact of transportation and support local communities. This can include locally brewed beer, locally sourced wines and spirits and locally grown produce for cocktails and juices.

Animal Welfare Certifications

Below are a suite of globally recognised animal welfare certifications for both Scenic Group purchasers and providores to consider for land based animal products.

Animal Welfare Certifications

Below are a suite of globally recognised animal welfare certifications for both Scenic Group purchasers and providores to consider for aquatic based animal products.

2.Hospitality & Guest Services

"As a luxury cruise and tour provider we place a high priority on our guest services and amenities."

Our guest services and amenities include high end accommodations, entertainment, spa services and recreational activities.

Responsible Tour Providers

We consider accessibility for guests with disabilities and ensure that our suppliers are committed to accessibility and can provide a range of experiences that meet the needs of all Scenic Group guests.

As a luxury tour provider Scenic Group are committed to reducing the potential environmental impact of our activities, including damage to ecosystems or wildlife, air and water pollution and carbon emissions.

We work with local guides to provide tours that are culturally sensitive and respect the cultural and social practices of the communities that we visit.

Conscious Stays

As a luxury tour provider it is essential that those hotels we partner with provide exceptional service and maintain highs stands of quality throughout all aspects of the guest experience.

We work with our hotel partners to ensure that they have in place policies and management systems for environmental management, social responsibility and health and safety.

We expect that our hotel partners can demonstrate their commitment to sustainable practices such as reducing energy and water usage, managing waste responsibly and sourcing sustainable products.

Eco Friendly Amenities

We are committed to purchasing luxury products that are made from environmentally friendly and sustainable materials.

When purchasing products for our guests we are committed to minimising waste and will seek to procure products that can be recycled or that are biodegradable.

We also are committed to working with our suppliers to ensure reduced waste through sourcing goods that have minimal packaging or packaging that is recyclable or biodegradable.

Single Use Plastic

We have eliminated all single use plastic from our onboard guest experience. We provide all guests with complementary refillable stainless-steel water bottles and filtered water stations and have removed plastic straws.

3.Technology & Equipment

"We rely on advanced technologies and equipment to operate our vessels and provide a range of guest services."

Through investment in efficiency, digitisation and advanced treatment systems we can minimise our environmental impacts even further.

Energy and Emissions

We are committed to investing in energy efficient equipment on board all of our vessels and at our office locations, including LED lighting, efficient heating, ventilation and air condition systems. Through minimising energy consumption we are also reducing any associated GHG emissions.

We are committed to reducing the emissions associated with the transportation of equipment purchased by considering and minimising where possible the transportation distances.

ENERGY STANDARDS

Below are a suite of globally recognised energy standards for equipment.

Water Conservation

We prioritise our guests' comfort by providing essential services on board, including those that require water such as bathroom and spa facilities, as well as laundry, kitchen, and dining facilities. As part of our commitment to sustainability, we invest in water-efficient equipment for these facilities, ensuring that we reduce our water consumption while maintaining high-quality service standards.

When purchasing water treatment systems for our vessels we are committed to investing in advanced systems that reduce water usage on board, conserve freshwater resources and minimise ocean pollution.

Clean Water in Schools Case Study

Scenic Group has partnered with the Vina Capital Foundation to provide clean water filtration systems to disadvantaged primary and secondary schools in Vietnam. The partnership provides safe drinking water and will improve sanitation at the schools reducing the risk of water-borne diseases.

WATER EFFICIENCY STANDARDS

Below are a suite of globally recognised water efficiency standards for equipment.

Maintenance

At Scenic Group we employee certified marine engineers to maintain equipment onboard our vessels. As an organisation we are committed to repair over replacement. This approach extends the life of existing equipment, reduces waste and minimise the environmental impacts associated with manufacturing new equipment.

Our maintenance and procurement of service equipment is undertaken in accordance with the OEM specifications to ensure reliability and quality.

"We rely on a range of professional services to ensure we deliver the highest level of quality for our guest experience ."

We seek to work with professional service providers who share the Scenic Group commitment to sustainability and social responsibility.

Social Responsibility

At Scenic Group we are committed to evaluating our professional service suppliers based on their commitment to social responsibility, including labour practices, diversity and inclusion policies and demonstrated community engagement initiatives.

We expect that all of our suppliers will be compliant with the relevant laws and regulations applicable to their operations including compliance with Modern Slavery laws. This is managed through contractual conditions and self evaluation and reporting.

To ensure that our suppliers adhere to our sustainability standards, we ask them to complete the Scenic Group Supplier Self Evaluation Form. This helps them to reflect on their social performance and demonstrate their commitment to sustainable practices.

Environmental Responsibility

At Scenic Group we are committed to evaluating our professional service suppliers based on their commitment to environmental responsibility, including their carbon footprint, energy usage, waste management practices and sustainable sourcing policies.

We expect that all of our suppliers will be compliant with the relevant laws and regulations applicable to their operations including compliance with environmental laws.

To ensure that our suppliers adhere to our sustainability standards, we ask them to complete the Scenic Group Supplier Self Evaluation Form. This helps them to reflect on their environmental performance and demonstrate their commitment to sustainable practices.

5.Supplies and Materials

"Sourcing high quality, sustainable supplies and materials is critical for us at Scenic Group, to meet our guest expectations and reduce our environmental impact."

Supplies and materials are essential for our operations and maintenance, as well as for providing a luxury guest experience.

Uniforms

Consider supply chain transparency to ensure that suppliers are meeting social and environmental standards including ethical work practices ensuring compliance with labour laws and providing fair working conditions for their employees.

When selecting materials aim to purchase those materials that are sustainable such as organic cotton and recycled polyester. Also consider how hard wearing the materials are, select those that can withstand frequent washing and wear so uniforms last longer.

Consider end of life when purchasing uniforms, can they be repurposed or recycled to reduce waste and promote a circular economy.

Cleaning Products

Choose cleaning products that are eco-friendly and have minimal impact on the environment and human health. Look for products that are made from natural, biodegradable ingredients. Avoid cleaning products containing harmful chemicals.

When purchasing cleaning products consider packaging. Aim to choose products that are packaged in recycled or recyclable materials and with minimal packaging. Where available procure refillable options to further reduce waste.

Choose products that are effective as this will reduce the amount of product required and also the time and resources required during the cleaning process.

Office Supplies

Aim to be a paperless operation. Where paper is required choose products that have high recycled content and are certified by a globally recognised forest certification system, such as the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC). These certifications ensure that the wood used to make the paper comes from responsibly managed forests that prioritise biodiversity and protect the rights of local communities.

When purchasing other office suppliers look for products made from recycled or renewable materials with minimal packaging and preferably packaging that is made from recycled or recyclable content.

Consider end of life when making purchasing choices, how can the product be responsibly disposed of to reduce waste to landfill.

Eco Product Certifcations

Below are a suite of globally recognised certifications for eco-friendly cleaning products.

Sustainable Paper

Sourcing

Below are a suite of globally recognised certifications for sustainable paper based products..

For further information please contact: 1300 203 761 info@scenic.com.au www.sesg.co

Scenic Group partnered with independent sustainability advisor Sustainable ESG to bring you this document.