Global Reporting Initiative Reports

Percentage of new suppliers that were screened using environmental criteria

Please note this response is cross-referenced for 308-1 and 414-1.

Interpublic Group (IPG) is committed to operating as sustainably as possible, and we expect the same from our suppliers. To ensure suppliers adhere to our standards for sustainability, we have adopted a Supplier Code of Conduct. The Code communicates our expectations related to legal and regulatory compliance, conducting business practices with integrity, and employment practices that promote human rights, equal opportunity, and a safe and healthy work environment.

IPG expects its vendors to share its commitment to supplier diversity and implement diversity, equity, and inclusion programs that provide opportunities for minority and women-owned suppliers. IPG’s vendors must cooperate with our commitment to encourage and recognize joint ventures and subcontracting of work between majority suppliers and minority-owned and women-owned suppliers.

IPG’s progress in doing business with underrepresented and economically disadvantaged communities is an important metric. IPG contracts with companies owned by women, racial and ethnic minorities, veterans, people who are disabled, and are members of the LGBTQ+ communities. In the United States, IPG and our agencies for several years have maintained an overall diversity spend level of 20%*, and 5% specifically on Black-owned businesses. This data is a percentage of overall supplier spend and is pulled directly from our internal accounts payable systems. IPG agencies also work with organizations such as FREE THE WORK, which helps to identify women, people of color, and members of other underrepresented groups.

In late 2020, IPG launched the Source-to-Pay (STP) Transformation Program, a new management initiative around supplier criteria. The goal of this project is to produce and maintain a list of vetted, preferred third-party vendor that is readily available to all of our companies. The criteria for selecting preferred vendors will relate to capability, credibility, price, and diversity and inclusion criteria as well as human rights, and environmental impact.

Agency use of the tool will be mandatory and any request for use of a third-party supplier not on the preferred list will require certain rational and related approvals. The Preferred Vendor portal will be maintained on SAP software, available directly to our agencies, and integrated with our SAP ERP system.

The first stage in producing the list of preferred vendors will begin with the vendors already vetted in our system, focusing on the U.S. and Canada. The initiative will then expand globally. As this initiative is rolled out over the next two years, it will provide IPG and its agencies with a much higher degree of visibility and improved vendor options. IPG will be able, in turn, to select and promote vendors based on the criteria most important to IPG, including diversity and inclusion, human rights, and environmental impact factors.

* Diverse supplier spend represents all of the following categories:

• Minority Business Enterprise (MBE)
• Women Business Enterprise (WBE)
• SBA 8(a)
• Self-Certified Small Disadvantaged Business (SC-SDB)
• Disadvantaged Business Enterprise (DBE)
• Woman-Owned Small Business (WOSB)
• HUB Zone (HUBZone)
• Veteran Owned Business (VET)
• Service Disabled Veteran (SDVET)
• Lesbian, Gay, Bisexual, Transgender (LGBT)
• Disabled
• Small Business Enterprise (SBE)