Responsible procurement

ITV spent £1.7 billion with over 18,000 suppliers and contractors in 2009. We are committed to responsible procurement. This involves treating our suppliers fairly and ensuring they act responsibly while providing us with high quality products and services.

Most of our procurement spend is associated with broadcast (including satellite transmission), production (including equipment hire, film stock, locations, post production and wages), and commissioning whole programmes. We also buy previously-filmed material (known as rushes) for use in news and other factual programmes.

As part of our commitment to protect the environment we ask our energy suppliers to provide us with a renewable energy tariff where possible.

Supplier performance

We expect all our suppliers to exhibit good environmental and social performance and treat their employees well. We assess potential suppliers on their corporate responsibility performance before entering into a contract with them. In 2009 we enhanced our responsible procurement process with the introduction of contract clauses that stipulate our expectations.

We regularly monitor suppliers’ performance. As part of our supplier review process, we have a two-way dialogue with them to discuss issues and identify areas for mutual improvement. If we identify any areas of concern, we require suppliers to take immediate action to remedy the situation.

ITV will cease trading with a supplier that acts illegally.

From 2010, we will require all key suppliers (those critical to our business and with whom we have a high value spend) to have, or be working towards, a diversity policy and strategy in place. We also expect our suppliers to implement environmental policies.

Fair treatment of suppliers

Impartial procurement

We behave impartially when procuring products and services from suppliers. All companies that are invited to bid for contracts receive the same information at the same time. For the most competitive contracts, we provide candidates with transparent information about where their bids rank against their competition.

Prompt payment

ITV has signed up to the Prompt Payment Code, under which we commit to paying suppliers on time, giving them clear guidance on payment procedures, and encouraging them to adopt the code for their own supply chains.

In 2009 we extended our payment terms for suppliers as part of a project to improve cash flow at ITV. We now commit to paying suppliers by the end of the month following the month in which we received their invoice. We recognise that this may cause genuine financial difficulty for some smaller companies, and evaluate its implications on a case-by-case basis.

From 1^st July 2010, we will pay all suppliers electronically, using the automated Bacs system. This will reduce the amount of paper we use, and help to cut ITV’s carbon footprint.