Design Delight Studio

NN Group Advances Sustainable Procurement to Reduce Supply Chain Emissions

NN Group, a leading international financial services company, is intensifying efforts to foster sustainability through its procurement processes. Recognizing its significant annual spend and diverse supplier base, NN Group aims to leverage its purchasing power to drive positive environmental impacts, particularly focusing on reducing carbon emissions linked to its operations.

Focus Areas & Emission Sources

The group’s largest carbon footprint categories from procurement include IT, consultancy, and facility management services. Over two-thirds of related emissions originate from suppliers serving NN Group’s Dutch business units and staff departments, underscoring a key area for sustainability initiatives.

Transition to Supplier-Specific Emissions Reporting

Currently, NN Group employs a spend-based method to estimate emissions from purchased goods and services. The company plans to transition to supplier-specific emissions reporting, allowing for more accurate monitoring of each supplier’s progress in reducing greenhouse gas (GHG) emissions. With upcoming regulatory requirements like the Corporate Sustainability Reporting Directive (CSRD), and voluntary disclosures from suppliers, NN Group will increasingly gather actual emissions data to inform its assessments.

Responsible Procurement Strategy & Supplier ESG Engagement Programme

Launched in 2024 for Dutch operations and set to expand internationally by 2026, NN Group’s responsible procurement framework integrates sustainability criteria within supplier management. A centerpiece is the Supplier ESG Engagement Programme, designed to evaluate suppliers’ net-zero targets, transition plans, and emissions transparency.

The goal is to engage at least 35% of suppliers by spend by the end of 2025, encouraging those falling short to enhance their climate actions. For new contracts, NN Group suggests measurable improvement plans like emission reporting and setting net-zero commitments, which are reviewed upon contract renewals.

Collaborative Approach to Decarbonization

Rather than limiting partnerships exclusively to low-carbon suppliers—which could hasten NN Group’s supply chain decarbonization but hinder broader market transformation—the company emphasizes collaboration. NN Group actively works with higher-emission suppliers to support their emission reduction journeys, balancing clear minimum expectations and timelines with constructive engagement. Contract renewals may be contingent on sufficient progress toward agreed sustainability targets.

Commitment to Climate Action Transparency

NN Group details its ambitions and climate-related initiatives, including sustainable procurement practices, in its latest Climate Action Plan, reinforcing its role in driving sustainable change within its operations and the wider economy.

About NN Group:
Active in 10 countries with services spanning pensions, insurance, banking, and investments, NN Group serves approximately 19 million customers. The company is headquartered in Amsterdam and publicly traded on Euronext Amsterdam (ticker: NN).

For more insights on NN Group’s sustainability initiatives and procurement strategy, visit their Climate Action Plan and official newsroom.

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