Evaluation of supplier CSR risk

Objectives:
  • Heighten supplier awareness as to CSR and incite them to establish and maintain good practices linked to the environment and social and human rights;
  • Initiate, where appropriate, partnerships or measures for improvement in CSR.
  • Factor in CSR criteria when selecting suppliers;
Priorities:
  • Integrate the broadest possible spectrum of expenses in the evaluation of CSR;
  • Factor in CSR ratings (minimum 3%) when selecting suppliers.
Highlights ( at December 31, 2008) :
  • 532 suppliers listed in the database
  • Supplier expenditure represents an annual budget of € 2.1 billion
  • 80% have a rating of above 5/10
The methodology behind supplier CSR evaluations was formalised in 2006 and is based upon a map of CSR risks assessed by the Purchasing Department. The map identifies 49 high-risk products and services along with 90 low-risk products and services. Depending on the nature of the risk involved, suppliers are required to answer one or both of the following two types of questionnaire:
  • A "standard" questionnaire for "low-risk" products and services made up of ten general questions used to evaluate a supplier's CSR commitments,
  • An "individual" questionnaire for "high-risk" products and services which must be completed along with the standard questionnaire.
The e-sourcing tool "Tool@achats" which is used to manage purchasing files online now features a CSR-specific consultation procedure which is used to send out standard/individual questionnaires, either when dealing with purchasing requests or for ratings. A database has also been created within the e-Sourcing tool which is updated as and when supplier CSR evaluations are validated by the purchasers. Using this database ensures that suppliers are not sent the same questions several times a year. Upon the launch of a call for tenders, the purchaser extracts the CSR rating of a candidate supplier from the database. If a supplier has not yet been rated, a questionnaire is sent at the same time as the call for tenders.
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