The document presented information on supplier diversity in Europe. It defined supplier diversity as seeking to ensure all businesses have a fair opportunity to compete for places in a supply chain, including those led by underrepresented groups. It discussed the limited access underrepresented suppliers often face, relevant EU and national legislation, and business benefits to procurement. Finally, it outlined the current state of supplier diversity and future drivers like changing demographics and demands for diversity data.

1. Supplier Diversity in
Europe
Integrating Cities Conference
9 March 2012
Strategic thinking
on equality and
mobility

2. What is MPG?
• An independent policy ‘think-and-do-tank’ with over 15 years of experience
• Mission: to contribute to lasting and positive change resulting in open and
inclusive societies by stimulating well-informed European debate and
action on migration, equality and diversity, and enhancing European co-
operation between and amongst governmental agencies, civil society
organisations and the private sector.
• Four primary activities:
• Gathering, analysing and sharing information
• Creating opportunities for dialogue and mutual learning
• Mobilising and engaging stakeholders in policy debates
• Establishing, inspiring and managing expert networks

3. Examples of MPG’s recent and current work
• Migration News Sheet
• EU Immigration Portal
• MigNet – Immigration Network
• Value Migration
• Migrant Integration Policy Index (MIPEX)
• European Website on Integration
• Migrant Voices
• Immigrant Citizens Survey; Access to Citizenship
• European Anti-discrimination Legal Network
• Anti-discrimination Awareness-Raising & Training
• Mapping the Anti-discrimination Framework

4. Agenda
• Definition of Supplier Diversity
• Business Drivers for Supplier Diversity
– Limited access to supplier diversity
– Current EU and national legislation
– Business benefits for procurement
– Changing demographics
• customer base
• profile of underrepresented businesses
• Present State of Play and What’s on the Horizon

5. Definition of Supplier Diversity
• Not a quota system
• Addressing inequalities in visibility and access to information
• Seeks to ensure that all businesses have free and fair opportunity to compete for places in a
supply chain.
• … including small and medium-sized enterprises led by people from under-represented
groups, i.e.:
• Women Owned Businesses: A woman owned business is an independent business concern that is at least 51% owned
and controlled by one or more women; and whose management and daily operation is controlled by one or more of the
women owners.
• Ethnic Minority Owned Businesses: An ethnic minority owned business is an independent business concern that is at
least 51% owned and controlled by one or more ethnic minorities; and whose management and daily operation is controlled
by one or more of the ethnic minority owners
• LGBT Businesses: An LGBT owned business is an independent business concern that is at least 51% owned and
controlled by one or more Lesbian, Gay, bisexual or transgender people and whose management and daily operation is
controlled by one or more LGBT owners.
• Businesses Owned By Persons With Disabilities: A business owned by persons with disabilities is an independent
business concern that is at least 51% owned and controlled by one or more; and whose management and daily operation is
controlled by one or more persons with disabilities, or is a major employer of persons with disabilities.
• Businesses Owned By Young People: A business owned by young people is an independent business concern that is at
least 51% owned and controlled by one or more young person; young persons are aged between 18 and 35, and whose
management and daily operation is controlled by one or more young persons.
• Suppliers from other under-represented or protected groups as protected by the European Union Discrimination Directive
2000..

6. Limited Access to Markets:
Imperfect Information
• SMEs often lack the relevant information and capacity to bid for public or
private sector contracts.
• There is a lack of awareness among large purchasing organisations of the
potential minority supplier base and an inability of these SMEs to identify and
exploit opportunities in mainstream consumer markets.
• There is a perception among established ethnic minority entrepreneurs that
contract opportunities were not being made available to them even though
they have the capability to deliver contracts
• Studies have found evidence of racial discrimination in the awarding of
contracts in particular sectors.

7. EU Procurement and Anti-
Discrimination Law
• The European Commission estimates that public procurement globally accounts for about 17%
of EU gross domestic product - a sum equivalent to half the GDP of Germany
• The EU’s Procurement Directives allow for consideration and inclusion of social issues in public
procurement, for example in relation to SME access to sub-contracting
– Public sector clients may require private sector suppliers to push certain social obligations
through their supply chains e.g. social issues, equalities and sustainability
– Permitted activities are detailed in the EU’s procurement guide “Buying Social: A Guide to
Taking Account of Social Considerations in Public Procurement”
• The EU Discrimination Directives 2000 lay down minimum common standards in EU Member
States’ laws in the field of discrimination on the grounds of racial or ethnic origin, religion or
belief, disability, age and sexual orientation.
• There is a very real possibility that an allegation of indirect discrimination will made by a
potential supplier against a large purchasing organisation in the near future.

8. EU Procurement Legislation and Social
Considerations
• Buying Social: A Guide to Taking Account of Social Considerations in Public
Procurement - Directorate-General for Employment, Social Affairs and Equal
Opportunities, Unit D.2 and the Directorate-General for the Internal Market and
Services Unit C.3
• http://ec.europa.eu/social/BlobServlet?docId=6457&langId=en
• SDE Handbook on Supplier Diversity in Europe (section on EU procurement
legislation):
http://www.migpolgroup.org/public/docs/Handbook on_Supplier_Diversity_in_Europe.p
or on the MPG Website:
http://www.migpolgroup.org/publications_detail.php?id=253
• European Website on Integration, Integration Dossier N Using Public
Procurement as an Element of Diversity and Equality Policies

9. UK Procurement, Equalities and
Anti-Discrimination Legislation
• Some local authority procurers have utilised the Local Government Act 2000 to include
social clauses in their tenders and contracts
– Under the Local Government Act 2000, ‘Well Being’ places and obligation on local authorities to work
towards the well-being of their communities, in relation to social, economic and environmental conditions
• The Equality Duty 2010 aims to embed equality considerations into the day to day work
of public authorities and to advance equality of opportunity between people from
different groups.
– The characteristics covered include: age, disability, gender reassignment, pregnancy and maternity, race –
this includes ethnic or national origins, colour or nationality, religion or belief (including lack of belief), sex
and sexual orientation.
• As evidence of compliance, public sector procurement and commissioning staff are
being asked to consider how they embed equality considerations in the organisation’s
relationships with suppliers (including those from the private sector), through
specifications and contract management.
• Some organisations are already doing this, e.g. The London Development Agency’s
CompeteFor Olympic Supply Chain Initiative which helps purchasers collect better data
on their suppliers, including ethnicity and Transport for London’s inclusion of supplier
diversity requirements in all of its contracts.

10. Business Benefits to Procurement
• Wider candidate pool brings wider choices which brings access to innovation
and flexibility into supply chains
• Aligns supply chains, products and services with an increasingly diverse
customer and client base
• Supports EU and national legislation on anti discrimination, equality and
diversity policies and internal equality and diversity policies
• Public (and private) sector organizations are including supplier diversity
requirements in tenders and contracts

11. Some Food for Thought:
Key Demographics
“Under-represented” groups across the
Profile of Small / Medium European Union
Sized Enterprises (SMEs)
(Less than 250 employees, turnover
People
not exceeding 50 million Euro) Foreign
Women with
born
Disabilities
• Play a pivotal role in the European
economy
• 99% (23 million) of all EU Enterprises Number of
are SMEs People 20.4 198.3 37
(millions)
• Employ 75 million people
• SMEs contribute over 55% of EU GDP
% of total
• Women entrepreneurs account for 5.4 52.5 9.8
population
22% of all SMEs in Europe
Source: European Network for SME Research (ENSAR):
2003 Survey Entrepreneur Characteristics

12. SME European Union Landscape
 49% of German Gross National Product is derived from SMEs
 SMEs employ 70% of all employees working in Private Business
 Approximately 25,000 companies in The Netherlands are owned
and run by under-represented ethnic entrepreneurs
 Self employed immigrants have in recent years tripled to 27,380
 Under-represented ethnic businesses now account for 9% of all UK
businesses
 Over 62,000 of these businesses are based in London – 19% of all
London businesses
 13% of Swedish entrepreneurs are immigrants
 80,000 firms are run by people from under-represented Ethnic societies

13. Underrepresented Businesses in
the UK
• Ethnic Minority Businesses (EMBs) account for 9% of all registered businesses
in the UK (over 212,000 businesses)
– London has the fastest growth rate in Europe in terms of the diversity of its
population and under-represented businesses
– Over 100,000 Black and Asian Minority Enterprises (BAMEs) are based in London
which accounts for 26.5% of all London businesses
– The number of BAMEs is predicted to double in some UK regions by 2020
• They contribute between £30 and £40 billion to the national gross value
added (GVA)
• The younger generation of BAMES are now increasingly involved in high-
value sectors including finance, business and professional services, IT and the
creative and media industries
• Women-owned businesses comprise approximately 16% of the business
stock and over one million women are self-employed

14. Underrepresented Businesses in
France
• Over 24% of SMEs are owned by women
– Expansion is rapidly increasing, as indicated by numbers looking for external
finance
• The disabled population is approximately 6% of total population
• Over 7.5% of businesses owned by immigrants
– Over 120,000 business are owned by immigrants
• Largest immigrant populations are from North Africa and Turkey
– Over 44% of self-employed foreigners are from the Maghreb
– Numbers of ethnic entrepreneurs is rapidly increasingly
• The French Government has used non-economic criteria in awarding public
contracts

15. Why Are the Current and Future
Drivers for Supplier Diversity
Current Drivers Current Drivers Future Drivers Future Drivers
 Addressing  EU General  Extension of EU  Strong links
inequalities through Discrimination General between the local
access to information Directives Discrimination and supplier
and visibility Directives to the diversity agendas
 EU Procurement Law
 External client supply of contracts  Increasing national
 UK Equalities
demand  Demands for data on and EU Government
Legislation and
 Rise of sustainable equality and diversity support for SMEs
Procurement Law
procurement and in procurement from  A recognised
 Diversity label in the public
SME agenda Accreditation in
France
 Reputation  Rapidly increasing Supplier Diversity
 Diversity Charter in external client
enhancement/risk
France and Germany demand from both the
mitigation
private and public
 Innovation of SMEs sectors

16. MPG Pilot: Anti Discrimination and
Equality in Procurement
• MPG Pilot on anti discrimination and equality in procurement issues
• Will involve 4 cities in 3 countries in Europe
• Timeframe: launch before the summer
• If cities are interested in joining the Pilot, they should contact Alex
Kirchberger, Programme Manager, MPG at Akirchberger@mpg.com

17. For further information, please contact
me at
bginsburg@migpolgroup.com
To download these slides go to :
http://www.migpolgroup.com/events_detail.php?id=339
Acting on equality and mobility
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