Microsoft initiates sustainability reporting for vendors

Microsoft is asking its vendors in its supplier ecosystem to start reporting how well they are committed to adhering to social and environmental practices.

The Redmond tech giant says it plans to start requiring a cross section of suppliers for Xbox and other divisions to report to Microsoft on the adherence to the requirements spelled out in Microsoft's Vendor Code of Conduct. Microsoft said the move will help improve sustainability practices in Microsoft’s supply chain.

Microsoft said it is taking the steps in response to a shareholder proposal from New York City Comptroller John C. Liu on behalf of the New York City Pension Funds.

A spokesman for Liu’s office told me Thursday that, as an institutional investor, overseers of the New York City Pension Funds want to make sure investments are protected from an adverse affects on company revenue that could be brought on by labor, environmental or other issues involving Microsoft. Liu has sought similar reporting requirements from Wal-Mart’s supply chain.

The Microsoft Vendor Code of Conduct (pdf, 5 pages) covers ethical business practices and regulatory compliance. The code of conduct addresses areas such as kickbacks, insider trading and environmental practices.

Read more on TechFlash.com.

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