Suppliers

Policy and Approach

GPT's Supplier Policy sets out our commitments and approach to managing our suppliers. In tandem with our Procurement & Expense Management Policy and our Supplier Code of Conduct, these Policies ensure that our approach maintains strong probity, risk management and commercial viability while also delivering sustainable outcomes and social value through our procurement practices and supply chain management.

We are committed to being a sustainable business and aspire to be an overall positive contributor to our communities, people and the environment. This commitment depends on the performance of our suppliers and we work in partnership with them in sourcing goods and services in the development and operation of our assets and in our corporate business activities.

Many of our key suppliers become representatives of GPT through their engagement with our guests, customers, site users and communities, and so we aim to build long-term, collaborative partnerships with organisations that share our values and that are willing and capable of helping us achieve our aspirations. We expect our suppliers to share our commitment to sustainability and to be able to demonstrate how they fulfil this commitment.
 

Supplier Code of Conduct (SCOC)

GPT's Supplier Code of Conduct outlines our fundamental expectations of suppliers and their suppliers regarding the activities in the production and delivery of goods and services supplied to us. The SCOC aligns with GPT’s values, purpose and strategy, as well as internationally recognised standards and appropriate codes of practice, and addresses our expectations regarding people, environment, community, sustainability, corporate governance and supply chain matters. 

By becoming a supplier to GPT and accepting and abiding by the SCOC, suppliers affirm that they are committed to working with GPT and are aligned to its values, purpose and strategy.

Suppling to GPT

GPT values the partnership we have with our suppliers and takes its commitments to supply chain Environmental, Social and Governance (ESG) principals seriously. As part of our supplier management framework each step of the procure to pay process considers our ESG principals and objectives. As a supplier and partner to GPT who wishes to engage with us,  you will be assessed across a number of key ESG, business relevance and performance measures.

Supplier Tender Pre-qualification 

GPT's Supplier Pre-qualification Survey is used in  large and medium value procurement  as a tool in the selection of suppliers suitable for tender. Potential suppliers respond to the survey, which has weightings assigned to defined ESG , corporate and risk based objectives. Suppliers that meet our minimum required ESG benchmarks may be considered to participate in the tender. Suppliers are excluded from the tender and contracting process where minimum ESG credentials are not met or required by GPT.  

Supplier On-boarding & screening

In July 2022, GPT implemented the supplier management system ‘Felix’. The SaaS system is an online portal that requires new and existing suppliers to register their company credentials and compliance documents with GPT. 

In addition to providing company details, suppliers are required to respond to a questionnaire covering all areas of ESG and compliance including; privacy, health & safety, cybersecurity, social procurement, modern slavery, environment and quality controls. Suppliers are required to upload current compliance documents, including insurance certificates, bank details, workers compensation documents, quality and environmental management certificates on to the platform.  These documents are validated by GPT prior to the approval for any supplier.  

Following supplier approval, GPT buyers are authorised to raise purchase orders and procure from the supplier.  Felix automatically sends email notifications to the supplier 30 days in advance of compliance certificate expiry. Supplier compliance documents that become invalid or expired will result in the supplier being suspended and GPT buyers will be prevented from procuring from you.

Ongoing Supplier management

For significant supplier relationships, GPT undertakes regular supplier reviews. GPT uses these meetings to discuss and review supplier performance metrics, service delivery levels, strategic and operational initiatives, modern slavery grievance, resolution and reporting mechanisms, ESG reporting and to ensure continued alignment to GPT’s Supplier Policies and Code of Conduct.

In 2022, GPT conducted 589 asset level supplier meetings. Suppliers were rated on a scale across multiple measures by GPT buyers where a mathematical score is calculated for the supplier. This score is used to benchmark performance across like suppliers, to monitor progress over time and to drive continual improvement across all our suppliers. Consistent failure to meet contractual KPIs may result in breach notices to the supplier with possible termination where breaches are not remedied.

In addition to supplier reviews, GPT conducts an annual survey of Significant Suppliers. In December 2022 this  survey assessed our suppliers’ approaches to risk, modern slavery, health & safety and relationship management practices. This survey canvasses multiple areas of ESG management, including indigenous supply, social procurement, environment and quality ISO Certification and modern slavery protocols. The outcomes of these surveys are published in our annual sustainability report.
 

Delivering positive outcomes in collaboration with our suppliers

Supporting small business health through invoicing and payment on time

The Payment Times Reporting Act 2020 (the Act) came into effect on 1 January 2021. The Act requires GPT to report to the Payment Times Reporting Regulator on its payment performance in respect of small business suppliers. Small business as defined by the Act includes any business with an annual turnover of less than $10 million in the reporting year. The scheme is designed to: 

• Increase transparency around large business payment performance 
• Help small businesses decide who to do business with 
• Create incentives for improved payment times and practices, and
• Help the public make decisions about the large businesses they procure from.

GPT has seen an improvement in our small business payments over the last two years as a result of Management efforts to improve the procure to pay process, training, the implementation of real time payment dashboards and the roll out of targets into GPT buyer KPIs for the year. Our purchasing and onboarding terms and conditions were also updated to reflect the requirement for suppliers to send their invoices with the correct purchase order number identified on the invoice to GPT’s invoicing email address, invoice@gpt.com.au

GPT is committed to paying all suppliers within agreed payment terms after the receipt of a valid invoice. Suppliers are required to provide their invoices within 7 days of the issue date identified on the invoice.  For the 12 months ended 31 December 2022, 92% of all suppliers (both large and small business) were paid within the agreed terms based on the date the invoice was correctly received. When compared to the due date on the invoice, 72% of all invoices  were paid within agreed terms.  Suppliers provided the invoice late (in excess of 7 days  from the invoice date) 34% of  the time.

Over the last 4 years, suppliers on average were paid as per the following table: 

Delivering continuous improvement in environmental management and performance

GPT's Supplier Code of Conduct aligns our suppliers' activities in the production of goods and provision of services with our environmental objectives such as our climate change and resilience objectives. To enable us to understand our suppliers' capability to deliver in alignment with our objectives, we encourage, engage and track the implementation and maintenance of Environmental Management Systems (EMS) by suppliers, in particular those suppliers that have a direct impact on GPT's asset environmental performance.  In addition, we encourage suppliers to have EMS aligned and certified with a recognised standard, such as ISO14001.
 
We track this KPI through the supplier registration process in Felix and through our tender pre-qualification stage for major services. In addition, through our ongoing contractor management and engagement forums, such as our Supplier Survey Assessment we are able to continually assess our suppliers. The results of our annual Supplier Survey over the last three years with regard to Environmental Management systems and Safety Systems are:

¹note: Supplier surveys are sent to GPT’s Significant suppliers where GPT has purchased in excess of $1 million in any year and/or the supplier is from a high risk category for modern slavery. Participation in the survey is voluntary

As at May 2023, for suppliers that have been registered and approved in Felix, a total of 248 suppliers have provided ISO14001 certification and 363 are ISO9001 certified. This reflects 17% and 25% respectively of all approved general suppliers.

Delivering continued action and performance on First Nations Reconciliation

GPT's Supplier Code of Conduct aligns our suppliers' support and action on social objectives such as First Nations Reconciliation and Indigenous Procurement. As part of our social sustainability objectives to increase supplier action on reconciliation and our own Reconciliation Action Plan (RAP) targets, we track the creation of Reconciliation Action Plans by suppliers, the endorsement of these plans by Reconciliation Australia and publication of the plans and performance. We also have a target for all of our top 10 (by spend) Specialist Services Suppliers to have RAPs.

We track this KPI through our supplier registration process and targets through confirmations at tender pre-qualification stage for major services and ongoing through contract management and engagement forums, such as our Supplier Survey Assessment. The results of our annual Supplier Survey over the last three years with regard to Reconciliation Action Plans are:

¹note: Supplier surveys are sent to GPT’s Significant suppliers where GPT has purchased in excess of $1 million in any year and/or the supplier is from a high risk category for modern slavery. Participation in the survey is voluntary 

We recognise the important role and meaningful opportunities procurement with First Nations owned businesses provides in Australia. We believe that through Aboriginal and Torres Straight Employment and through indigenous procurement, GPT can influence greater social outcomes for indigenous peoples.  Our annual survey indicates that below outcomes for Aboriginal and Torres Strait Islander employment over the last three years:

¹note: Supplier surveys are sent to GPT’s Significant suppliers where GPT has purchased in excess of $1 million in any year and/or the supplier is from a high risk category for modern slavery. Participation in the survey is voluntary 

In 2021, GPT  became a member of Supply Nation – a non-profit organisation focused on growing First Nations business through supplier diversity. Being a member of First Nations provides access to a range of services that are provided by First Nations businesses.

We work with a range of First Nations-owned businesses, including Supply Nation registered and certified organisations, and in 2021 we spent more than $5.5 million with First Nations owned businesses. We have incorporated reconciliation matters into our supplier tender pre-qualification questionnaire and our supplier registration process to provide supply chain partners with the opportunity to share details about their reconciliation objectives, First Nations employment initiatives, procurement strategies and other relevant activities. Favourable recognition is given to potential suppliers that can demonstrate their reconciliation commitments. 
 

Assessing and addressing modern slavery risk

GPT released its fourth Modern Slavery Statement in October 2023 which sets out the actions we have taken during 2022-2023 and propose to take in the future to assess and address modern slavery risks in our business. As one of Australia’s largest diversified property groups, we are well placed to influence and effect change with our suppliers, partners and other stakeholders.

We have established a comprehensive foundation to delve deeper into this issue, notably through our association with the Cleaning Accountability Framework and our modern slavery assurance program, aimed at uncovering and addressing modern slavery concerns.

GPT maintains an independent program for modern slavery assessments. These assessments are undertaken randomly across our key contractors and are focused on understanding and remediating modern slavery risks across our supply chain.

The focus of these assessments includes:

• Employees rights to work
• Pay and conditions
• Award classification
• The use of subcontracting
• Modern slavery awareness
• Excessive working hours and conditions
• Accessible grievance mechanisms
• Appropriate remediation processes

Respecting the human rights of everyone that we engage with, directly and indirectly, is an important part of GPT’s responsibility to uphold high ethical standards in our business practices and decision-making.