Our supply chain
Transurban directly engages more than 1,700 suppliers across our Australian and USA operations. This includes buying of goods and services required for our business and the procurement of major, contractor-managed infrastructure development projects.
Our total supply chain spend in FY17 was more than $1.2 billion, with:
- Around 60 per cent of spending with our top 10 suppliers by spend
- Close to 70 per cent of the total annual spend related to capital expenditure (for example, major infrastructure projects)
Transurban’s Supplier Sustainability Code of Practice sets governance, community, environmental management, social responsibility and supply chain criteria for all suppliers working with Transurban. Our tender and contract management processes include environmental, sustainability and safety expectations specific to each contract.
In FY17, we contributed to the working group for the development of a new International Guidance Standard (ISO 20400) - Sustainable Procurement. Since its release in April 2017, we have reviewed our procurement practices against the Guidance Standard, and we are taking action to align our practices with the new standard.
Major project supply chain
When working with contractors on major road development projects, Transurban uses independent infrastructure sustainability benchmarks to ensure that we are designing, building and operating high-quality assets.
Infrastructure Sustainability Ratings
In Australia, Transurban uses the Infrastructure Sustainability Rating Tool developed by the Infrastructure Sustainability Council of Australia (ISCA) to evaluate sustainability across a project’s lifecycle.
This tool rates infrastructure projects against industry environmental, social, economic and governance benchmarks. The IS rating scheme provides independently verified assessments of each project’s overall quality and sustainability, and ensures that project activities that go beyond business-as-usual are identified and implemented.
Transurban is an ISCA member, and we contributed to the development of the original IS rating tool. We aim to achieve an Excellent IS rating (or higher) for all of our major Australian development projects. Projects using the IS rating scheme at June 2017 are:
- NorthConnex (Leading IS Design Rating awarded)
- Gateway Upgrade North (Excellent IS Design Rating awarded)
- CityLink Tulla Widening Project (Excellent IS Design Rating awarded)
- Logan Enhancement Project (Excellent rating required in project contract)
- West Gate Tunnel Project (Excellent rating required in project contract)
In the USA, we are similarly committed to using independent sustainability ratings for new assets, and have identified the Envision Sustainability Rating Tool for use in future USA projects. There are currently no Envision ratings underway.
Transurban has long-term partnerships with a range of social enterprises that support local employers and small businesses and/or provide training and career opportunities to disadvantaged people.
In Australia, Transurban has partnered with Ability Works Australia since 2011. Ability Works Australia employs, trains and supports people with disabilities. To date, Ability Works mailroom employees have processed more than one million Transurban items. Employees have also tested more than 500,000 e-TAGs for reuse, refurbishment or recycling.
In the USA, we support the Small, Women-owned and Minority-owned Business (SWaM) Procurement Initiative and the Disadvantaged Business Enterprise (DBE) Program. This year, Transurban and its partners awarded more than US$5.2 million (AUD $6.8 million) in contracts to SWaM and DBE entities working as suppliers to the 495 Express Lanes, 95 Express Lanes and 395 Express Lanes. During the lifetime of the assets to date through construction and operation, Transurban USA, our partners and contractors have collectively awarded over US$777 million in contracts to SWaM and DBE entities.