How Queen Elizabeth II’s death has impacted procurement
From Royal Warrants and Charters to supply chains and sustainability, the death of a monarch means big changes and challenges for procurement. After more than seven decades on the throne, Queen Elizabeth II’s death introduces both challenges and opportunities for our profession.
As the UK and the rest of the world mourn the passing of Queen Elizabeth II, few people’s thoughts will be on how this event will impact procurement and supply chains. But the Queen’s death, and the ascension to the throne of her son, King Charles III, has set in motion a chain of events that will have a significant impact both now and into the future.
Given the length of Queen Elizabeth’s reign, few companies and even fewer people will have dealt with these changes before, or have processes in place to mitigate them. For many it will be a case of learning as they go, arriving at a time when many UK and international businesses are still under pressure thanks to major disruptions to supply chains caused by recent global events.
However, even with all the challenges that face individuals and businesses in this situation, there are new opportunities that will present themselves with a new monarch on the throne. King Charles III has long been seen as ahead of his time with regard to the environment. Could he prove to be the global leader who can drive sustainability and change at this most critical of times?
Business under pressure
The UK economy, as with others globally, has been facing significant challenges in recent months – the cost of living crisis; inflation at a 40-year high; and the country on the precipice of another recession. The two additional Bank Holidays in the UK, firstly for Queen Elizabeth II’s Diamond Jubilee then for her funeral, have had a detrimental impact on businesses and are likely to cause a further decline in GDP.
The Queen’s death put on hold plans by the UK’s new Prime Minister, Liz Truss, to provide support for both households and businesses facing huge utility bills this winter. With Parliament suspended during the period of national mourning, plans for supporting businesses were delayed until the 21st of September, and are unlikely to come into force for a number of weeks.
In the face of this, businesses are having to rein in their own spending, with procurement going back to the drawing board again to help reduce costs and ensure that supply chains can operate as smoothly as possible. The full impact on businesses won’t be seen for another couple of months, but with a recession likely, it could be a winter of discontent for many.
Royal Warrants – changes and challenges
Another change facing many businesses is the loss of their Royal Warrant and the impact it may have on their operations and supply chains. If you are not familiar with the concept of a Royal Warrant of Appointment, it is “a document that appoints a company to the Royal household, which allows the holder to use the Royal Arms in connection with their business, with many opting to display it on packaging and in marketing material”.
In the UK, it allows organisations to use the Royal Coat of Arms on packaging and marketing materials, along with the wording, “By Appointment to…”. Monarchs may choose products that they enjoy, or have traditionally been supplied to the Royal Family by a specific supplier. However, upon the death of a monarch, all Royal Warrants are immediately cancelled, and businesses must stop using them within two years.
This is the case for more than 600 products, services and organisations following the death of Queen Elizabeth II. While organisations are able to reapply for Warrants, there are certain conditions that must be met in order to be approved, and there are changes that will still have to be made to packaging and marketing materials even if organisations are successful.
For procurement, this means changes within the supply chain too, and tenders for services that will most certainly not have been included in budgets for this year. For small businesses and wider supply chains, not being reappointed could have a detrimental impact on incomes if they are no longer seen as prestigious.
Not only this, but there may be further work required by organisations to prove environmental and sustainability credentials. According to The Royal Warrant Holders Association, “applicants are required to demonstrate that they have an appropriate environmental and sustainability policy and action plan.”
While the focus on sustainability isn’t new for Royal Warrants, it’s very likely that there will be an increasing focus on this for the Royal Household, but also, thanks to the new King, for the country as a whole.
Sustainability – the changing of the guard?
One thing King Charles III has long been held in high regard for is his focus and record on environmental management and sustainability. As far back as the 1960s and 1970s, Prince Charles, as he was then, chose to focus on the issues facing the UK on pollution, natural resources, and climate change.
The King brought in organic and sustainable farming practices as his private residence at Highgrove House in the mid 1980s, receiving full organic status in 1994. He even converted his Aston Martin to run on 85% bioethanol, something that has earned him further plaudits, even if such a solution is beyond the general public.
King Charles has spoken extensively about sustainability and carbon footprints, including his own, delivered the opening speech at the COP26 Climate Conference last year, is the patron of the Campaign for Wool and launched the Sustainable Markets Initiative in 2020. The King is a man with some serious environmental credentials which are likely to underpin many activities now he is on the throne.
The question is, how far can and will he go, and who will follow his lead? Either way, King Charles III could be the figurehead that the fight for sustainability and against climate changes has been looking for. He is in a position to wield power, influence decision-making and inspire other leaders and individuals around the world, and can help take the fight to where it needs to be and ensure others do likewise.
Are we looking at the new King of Sustainability? Only time will tell.
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