Informal guidance on Builders Merchants Federation’s supply chain initiative
The CMA has issued informal guidance to Builders Merchants Federation on its proposal relating to the industry using a recommended single supply chain assurance services provider.
Documents
Details
The Competition and Markets Authority (CMA) has provided informal guidance to Builders Merchants Federation (BMF) in relation to a proposed environmental sustainability agreement. The informal guidance has been issued as part of the CMA’s ‘open-door’ policy, which is set out in the CMA’s Green agreements guidance.
BMF is a trade association that represents the interests of merchants and their suppliers of building materials and services in the UK and Ireland.
What this informal guidance is about
The request relates to a proposal developed by BMF to recommend that the industry use a single provider of supply chain assurance services to administer a standard environmental, social and governance (ESG) platform. Under the proposal, BMF would select a company called ‘Verisio’ to provide the single preferred platform initially – with a competitive process being held to determine future providers on an ongoing basis at regular intervals. The stated objective of the proposal is to make it easier for merchants to assess the impact of their supply chains by providing ESG information on a consistent basis and for suppliers to improve their processes and policies. BMF considers that the single preferred platform will help suppliers avoid having to put increasing resources into providing information on their supply chains to multiple merchants and assurance providers. As part of the proposal, BMF will work with Verisio to develop a standard ESG questionnaire, with input from its members and non-members, to test that it genuinely represents their needs. This questionnaire will be made available to the wider industry, including other supply chain assurance providers.
BMF approached the CMA in the early stages of developing this proposal to help it assess any potential competition law risks prior to implementation.
Based on the information provided by BMF, the CMA has advised that we would not expect to take enforcement action in respect of the proposal.
Why the CMA has published this informal guidance
The CMA has published this informal guidance to support similar agreements by other businesses and industries so that they may proceed with greater confidence as to how to remain on the right side of competition law.
How to contact the CMA
Send any requests for informal guidance to: sustainabilityguidance@cma.gov.uk