Bunnings works with more than 3,500 suppliers of goods not for resale (GNFR) and service providers to support our operations and adopts a risk-based approach when partnering with these suppliers to collaboratively manage risk and uphold its ethical sourcing commitments.

Bunnings’ approach to the ethical procurement of GNFR and services is built upon its Code of Conduct, which is embedded into standard terms of trade and conditions which mandate compliance.

For certain high-risk industries, assessments are completed to determine the inherent risk level and the subsequent ethical sourcing controls. For example, semi-skilled domestic labour such as security guards are deemed high-risk due to:

1. the prevalence of vulnerable migrant workers engaged within this industry;
2. the challenges in appropriately managing the use of subcontracted labour; and
3. the complexity of the Australian and New Zealand industrial relations systems relative to the resources of these businesses, many of which are small businesses. 

To assist with mitigating these risks, Bunnings has strengthened the ethical sourcing controls for the procurement of security guard services to include:

1. Pre-qualification: determining potential security guards providers ability to meet the expectations of the Code of Conduct via capability assessments, with responses rated and forming a key consideration into the awarding for Bunnings business;
2. Subcontractor transparency and assessments: if a security guard provider is approved to use subcontractors, Bunnings co-designs controls with the security provider for the engagement of subcontractors. These controls include risk and capability pre-qualification assessments, supported by frequent reporting to Bunnings. In the year, 135 subcontractors were approved for the delivery of security guard services;
3. Independent audits: Bunnings engages a third-party to audit the primary security vendor using a sample-based methodology to verify compliance with Bunnings ethical sourcing requirements; and
4. Independently monitored helpline: like Bunnings team members, in-store service providers, including security guards, can choose to raise concerns anonymously via Speak Up.

Similar ethical sourcing controls are adopted for other high-risk service providers across Bunnings’ supply chains and operations.

Bunnings remains committed to sourcing GNFR and services in an ethical manner and will continue to evolve this approach with the aim of working with high-risk service providers to improve their business practices.