Standards & Tools to Evaluate yourSuppliers Archivos/ECOVADIS... · Sustainable Procurement...

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Standards&ToolstoEvaluate

your Suppliers

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January 2018

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EcoVadis- WhoWeAre

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basedin128differentcountriesand150differentindustry sectors

200 40,000 subscribersmultinationalcompanies

Worldwide Offices:

Employees480+ 42+

Nationalities

Paris NewYork Tunis Mauritius Warsaw HongKong

48%vs 52%21+

Languages

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70%SMEs● 150categories● 128+countries12,000buyers ● ~1Tn$spend

40,000+Suppliers200Companies/Brands

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EcoVadisnetwork– aGlobalCSRRatingsNetwork

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DriveimprovementsinSustainabilityofglobalsupplychains

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• 50newenterprisesjoinedtheinitiative,andmorethan8000neworganizations

joinedournetworkassuppliers(40000enterprisesintotal)

• The networkeffectacceleratethenumberofcompanieswhorequestCSRRatingsand

measurableimprovementsinsustainabilitypracticesoftheirbusinesspartners

• HurricanesHarvey/IrmaremindusthatClimateChangewillsoonhavedevastating

impacts.

• Corporateactions(asillustratedbythe« WeAreStillIn »initiative)areabigpartofthe

solution

• Ratingsareacriticallevertostrengthentheirimpact,acrossthehundredsof

thousandsofcompaniesparticipatinginglobalsupplychain.

SustainableProcurementContext

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GLOBALREGULATIONSENGAGINGBUSINESSESTOCOMPLYTOSUSTAINABILITY

California

Transparency Act

FCPAUS

ESGDisclosureEU

Devoirde VigilanceFrance

UK

Modern SlaveryFrance

LoiSapin II

2010 2010 2016 20172014 2015

Chine

Environmental LawUK

Bribery Act

Conflict MineralsUS

Regulations areproliferating

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Duediligenceonsupplychain:1. Nationalinitiatives

2. Europeaninitiatives :

- Regulation (EU)n°995/2010 ontimberoperatorsthatselltimberandby-

products.

- « Greencard»initiative uniting8Europeanparliaments (Estonia,Lithuania,Slovakia,Portugal,UK,Italy,Greece and France)askingtheEuropenCommissiontodraftalawon

companiesdutyofcareatEuropean

level

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UK

Modern

SlaveryAct

(2015)

Sweden

NGOand

parliamentary

meeting(2016),

review of

nationalCSR

plan(2017)

Switzerland

« Initiative

multinationales

responsables »aiming

atmodifying

legislation

(2016)

Germany

Nationalplanof

action

« Businessand

human rights »

(2017)

Austria

Netzwerk

Soziale

Verantwortung

(2017)France

Devoirde

vigilance

(2017)

European Context

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Whatareyourcurrentchallenges?

Getting100’sofBuyersTOINTEGRATE

CSRRISK intodecisions&process

Audits/compliancealoneareunableto

DRIVEIMPROVEMENTS

andlastingchangeinsupplierpractices

SCALINGUPtothousandsofsuppliers

whilecontrollingthecostsofyourprogram

PressuretoDETECTPROBLEMS

earlier,

andavoidBRANDDAMAGE

!

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Procurementisevolving

Price

Quality

On-TimeDelivery

Sustainability

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Highlightsfrom2017EcoVadis /HECBarometer

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Thesurvey’spopulationconsistedof

120companies

• 75%basedinEurope• 25%inFrance• 18%inU.K.• 12%inU.S.

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Companieswithannualrevenuesof

atleast500millionEuros

• 25percentabove25billion€• 42%between5billionand25billion€• 34percentunder5billion€

Mainactivitysectorsrepresented• 14%fromthemanufacturingsector

• 13%retail&consumergoods

• 12%services• 9%ICT/Telecommunications

Summaryofthestudy

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Sustainable Procurement Drivers

Whencomparingtoour2013study,thisyearwe

seeaconvergencebetweentheUSand

Europe onthesametopthreedriversandprioritiesforSPprograms:Brand

Reputation,RiskMitigation,andCompliance.

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Whatisthevalueofevaluatingyoursuppliers?

• Brandprotection

• Supply chain disruptions

• Fines+litigations

ManageRisks

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• Improved TCO

• Reduced over-specification

• Reduced consumption

ReduceCosts

• Product/Servicedifferentiation

• Accessnewmarkets

• Income from recycling projects

IncreaseRevenue/Innovation

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Sustainable Procurement Leaders– Enhanced Benefits

“Idobelieveinthecorrelationbetweensustainabilityandinnovation.Whenasupplier

demonstratestheircommitmenttoCSR,theyaredemonstratingtheirabilitytolookforward- thattheyhavealong-termvision.Ithinkthisisfundamentaltothecapacity

forinnovation.”Top5BeveragesCompany

Keyelements forasuccessful SPProgram

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Acomplex challenge…

CO2footprints

Buyers Suppliers

● Time-consuming● Noreliableindicators● Notscalable ● Duplicateefforts● Nostandards● Littlefeedback

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Simple&Standarized Solutions

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Buyers Suppliers

● Reliableindicator● Actionablescorecards● Leverageonsuppliers ● Identifyimprovementareas● Competitionbenchmark● Reduceadministrativeburden

Reliable

Ratings

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CSRCategoryRiskMapping

Allcategoriesscreenedinordertoassessthe

inherentrisklevelsforsuppliers

EcoVadis CSRRating

Evaluationoflargenumber ofsuppliers athigh

risk levels

CorrectiveActionPlan

Monitoringtheperformanceofevaluated

supplierswithintheEcoVadis platform

On-siteAudit

EcoVadis Auditmoduleformonitoringon-site

auditsoflimitednumberofsupplierswithsevere

risklevels

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Entiresupplieruniverse

Filteredbycategory/countryrisk

Highriskcategories&countries:

RatedbyEcoVadis

LowormediumRiskRatingOngoing

PerformanceMonitoring

HighRiskRatingOn-site

~50000suppliers

~3 000suppliers

~500suppliers

~50suppliers

Asmarter way todeploy

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Maintools toboost Sustainable Procurement

"Theauditandtheself-assessmentquestionnairesweregettingheavy.Inaddition,thisapproachdidnotgiveusthedesiredresults.Witharobustevaluationsolution,wehavereducedthevolumeand

optimizedthequalityofourauditprogram."

Companyrankedamongthetop20industrialconglomerate

companies

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Sector InitiativesCollaboration among companies within an industry sector has proven to be a powerful lever to drive sustainable supply chain efforts forward. A Sector Initiative represents a group of companies in a common business sector, sharing tools to assess and improve sustainability sourcing practices within their global supply chains to meet their CSR objectives. Following that objective, these companies have joined forces to share their suppliers' audit and/or assessment results in one platform.Vision

• Streamline message into the market• Create and facilitate standardized approaches• Achieve awareness and application of CSR

standards in the market

Mission

• Harmonize CSR practices • Provide common tools• Monitor performance and improvement• Align on assessment (and audit) standards

EcoVadis & Sector Initiatives

Together For

Sustainability (TfS) is a

collaborativeinitiative

within thechemical

sector

Railsponsibleisa

collaborative initiativefor

therailwaysector

RBIisacallaborative

initiativeinthe

Beauty/Cosmetic sector

19members (6

foundingmember

companies)

6foundingmember

companies

4members

companiesusing

EcoVadisto evaluate

their suppliers

4700+

supplier

assessments;

- sharing

- auditsofsuppliers

Evaluation and

monitoringof CSR

performanceof

supplierswithinthe

railwayindustry

withcommon

processesand tools

SharingofCSRbest

practicesamongits

members

https://tfs-initiative.com/ http://railsponsible.org/ http://responsibleb

eautyinitiative.com/

2012 2015 2017

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GlobalSupply ChainCoverage is Expanding

“Multi-tiervisibilityandtraceabilitytotheoriginsofoursupplychainsandtransparentreportingonthistoourstakeholdersis

rapidlybecomingarequirementforus”.Top5Pharmaceutical

Company

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Supplierperceptionsandengagement

“Ibelievethatsupplierengagementandawareness

campaignscanonlybesuccessfulifallpartsofthebusinessthatinteractwith

suppliersarealigned,otherwiseyouaredestinedtosendmixedmessagesthatwillputyourlevelofcommitment

inquestion.”

- 10MedicalEquipmentCompany

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CSRis built into aday today job

Strategyisgloballycraftedbutlocallydeveloped

throughadiverse

CEO&CPOcommitmentandfullsupport

IntegrateassessmentintoRFP’sandcontracts

Trainingsandsupportforbuyersandsuppliers

CSRisbuiltinsuppliermanagementprocess

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CaseStudy Atos:Howtoengagewith suppliers

EcoVadis scoreincludedinoneach

supplieroverallassessment

CSRcontractclause:Suppliercharter

DirectCSRdiscussionwithSuppliers(It’s

crafteddependingontheirCSRmaturity)

MinimumEcoVadis scoredefinitionforkey

suppliers

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CaseStudy Atos:Howtowork with theresults

•40minimunscorerequiredbyAtos.BelowthatCAPisneeded+reassessment

Keeptherelantionshipgoing

Encouragethedevelopmentofinnovativepartnerships

Lessthan30needtoperformCAP+reassessment,andifnotAtoswillsourceaway<30

<40

>40

>60

• Increaseinnumbersofsupplierslaunchedincampaignsin2016.Achievinganaverage

scoreof48

• Duringsupplierselection,EcoVadis scoreaccountsforatleast5to10%oftheSourcing

DecisionGrid.AhigherEcoVadis Scorecontributestoincreasedcontractallocation

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CaseStudy J&J:SupplierRecognition

J&JkeyelementsEcoVadis

Score

SustainabilityGoals

(Ecovadis Dashboard)

What’sinitfor

thesupplier

Highleanlevel

CIinstitutionalized

Supplierdiversity

+allelementsfromSilver

• ISO14001ANDOHSAS18000•Publiclyreportingof2outof6sustainabilitygoals

• 1innovationidea• LCAandplantoreducefootprint

Business

integration

UtilizesLeantools

Procurement'sprocess

Sharescoststructure

+allelementsfromBronze

• ISO14001OROHSAS18000•Publiclyreportingof2outof6sustainabilitygoals

Partnershipfor

newproducts

SupplierImprovementprocess

Supplierleanselfassessment

Selfreportingqualityandservicelevel

Multiyearplan

…

+allelementsfromcommitment

Businessvolume

linkedto

performance

BusinessContinuityPlanning,REACH,Verifiedsources,

Capacity,Financialstability,Norecallsduringlaunch,cGMP

marginal,Rootcauseinvestigationguidelines…

Long-term

agreements

andcontracts

Gold

Silver

Bronze

Commitment

Taking aCloser LookattheRatings

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ARobust Methodology:21Criteria

Policies-Actions-Results

4.SUPPLYCHAIN

Environmentalperformance

Socialpractice

3.ETHICS

Corruption&Bribery

Anticompetitivepractices

ResponsibleInformationMgt

2.SOCIAL

EmployeesHealth&Safety

WorkingConditions

SocialDialogue

CareerManagement&

Training

Child&ForcedLabor

Discrimination

FundamentalHumanRights

1.ENVIRONMENT

Energy&GHG

Water

Biodiversity

LocalPollutions

Materials,Chemicals,Waste

ProductUse

ProductEnd-of-Life

CustomerHealth&Safety

SustainableConsumption

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Assessment should be supplierspecific

ActivitiesofcallcentersManufacturingofpaper

andcardboard

TheCSRrisk evaluation

should be focused onthe

material elements for

each supplier

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KeyElements foraReliable Rating

CSRexpertsneed

tobeinvolvedin

theassessment

processinorderto

ensurethatresults

arerelevant

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CSRRatings:EcoVadis Example

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ThankYou!

AlejandraMiranda

amiranda@ecovadis.com

M.+33781895547

NicolasDussert

ndussert@ecovadis.com

M.+33632558406