BMF Supply Chain Assurance Proposal Gets Competition Watchdog Green Light

PROPOSING to use a single supply chain assurance provider to give environmental, social and governance (ESG) information about construction products, the Builders Merchants Federation has got a green light with informal guidance from the Competition and Markets Authority (CMA).

The Builders Merchant Federation (BMF) wants to set up a supply chain scheme that will introduce standardised ESG information about products sold through its merchant members.

BMF Supply Chain Assurance Proposal

Led by Travis Perkins, the BMF proposes using a single provider of supply chain assurance services called Verisio.

Verisio would develop a standard ESG questionnaire for suppliers of construction products sold by merchants. The questions are to obtain information about the environmental impact of the products’ production in a standardised format.

It will help the merchants’ customer businesses to integrate carbon footprint information into procurement processes, and to report to their supply chain customers on carbon emissions.

It is also hoped that the single preferred platform will help suppliers avoid having to put more resources into providing supply chain information for multiple merchants and assurance providers.

Travis Perkins has been using Verisio for the past four years and helped to develop the questionnaire.

Consistent and Comparable ESG Information

The BMF now wants to extend the same service across its membership. This is because it says that merchants are increasingly under pressure to demonstrate robust, objective and audited supply chain assessments.

However, because BMF wants all of its 535 merchant members to use the same assurance platform to produce consistent and comparable information, concerns about competition law were raised.

Following BMF raising the matter with the CMA, the CMA has issued guidance on ‘green agreements’, so that other sectors will be able to use it. The CMA also advised that it would not expect to take enforcement action on the BMF proposal.

>> Read more about BMF in the news