SUSTAINABLE PURCHASING POLICIES FOR THE ENTIRE SUPPLY CHAIN 4.3. Social and environmental standards for purchasing 4 ASSESSMENT BY AN EXTERNAL COMPANY To supplement the supplier assessment process and make it more strengthening, the Group has embarked on an assessment of its entire supplier base using criteria relating to the environment, workforce, ethics and subcontracting chain. It has outsourced this assessment to an external company, EcoVadis. The first step was to identify supplier risks more clearly. The Group informed its suppliers that this evaluation was a prerequisite for remaining in the panel and that a corrective action plan would automatically be required for providers that were not up to the necessary standard. In 2015, 214 supplier groups were evaluated, or 52% of the value of purchases. The aim is to evaluate over 80% of purchases by the end of 2016. CSR PERFORMANCE OF PSA SUPPLIERS ASSESSED BY AN EXTERNAL COMPANY (ECOVADIS) Compliant Minor non-compliance Major non-compliance Overall performance Environmental performance Social performance Ethical performance Subcontracting chain management 56% 65% 57% 37% 36% 38% 30% 36% 53% 53% 6% 5% 7% 10% 11% PSA’s suppliers outperformed other suppliers assessed by EcoVadis, with average scores of 46 and 41 respectively. The PSA supplier base evaluated by EcoVadis was found to have a more advanced CSR maturity than other suppliers assessed by EcoVadis. Distribution of CSR assessments of PSA suppliers vs EcoVadis Supplier distribution 35% 30% 25% 20% 15% 10% 5% 0% 0-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85-94 95-100 AUDITS OF SUPPLIERS AT RISK For suppliers identified as “at risk” according to the CSR country, product or process criteria, social and environmental audits are conducted by an external company. Based on the Group’s values, an audit table has been put together and covers the following topics: CSR policy, human rights, working conditions, health and safety at work, environment and the management system. These audits provide a snapshot of how the supplier is performing in terms of the PSA reference document and the local statutes and regulations. The specifications stipulate that the audit must be carried out by local auditors who speak the language of the audited site and are fully au fait with the laws, regulations and practices applicable to the site. The external auditor draws up an audit report on each occasion. The report describes any non-compliances encountered and grades them according to four classifications (critical, core, minor and observations only), each requiring corrective action plans. Supplier CSR performance PSA supplier base All suppliers assessed by EcoVadis Source: If no satisfactory solution can be found to a critical or core noncompliance, a disengagement plan may be put in place, after consultation with the Group’s internal players affected by the decision. If necessary, an audit may be carried out to check the action plan has been implemented. Since 2008, 68 social and environmental audits have been performed at Tier 1, 2 or 3 suppliers. PSA GROUP - CORPORATE SOCIAL RESPONSIBILITY - Strategic Guidelines, Commitments and Indicators 2015 149
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