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ECOVADISCONFIDENTIAL– DocumentClassification:Public
Standards&ToolstoEvaluate
your Suppliers
1
January 2018
ECOVADISCONFIDENTIAL– DocumentClassification:Public
EcoVadis- WhoWeAre
2
basedin128differentcountriesand150differentindustry sectors
200 40,000 subscribersmultinationalcompanies
Worldwide Offices:
Employees480+ 42+
Nationalities
Paris NewYork Tunis Mauritius Warsaw HongKong
48%vs 52%21+
Languages
ECOVADISCONFIDENTIAL– DocumentClassification:Public
70%SMEs● 150categories● 128+countries12,000buyers ● ~1Tn$spend
40,000+Suppliers200Companies/Brands
3
EcoVadisnetwork– aGlobalCSRRatingsNetwork
ECOVADISCONFIDENTIAL– DocumentClassification:Public
DriveimprovementsinSustainabilityofglobalsupplychains
4
• 50newenterprisesjoinedtheinitiative,andmorethan8000neworganizations
joinedournetworkassuppliers(40000enterprisesintotal)
• The networkeffectacceleratethenumberofcompanieswhorequestCSRRatingsand
measurableimprovementsinsustainabilitypracticesoftheirbusinesspartners
• HurricanesHarvey/IrmaremindusthatClimateChangewillsoonhavedevastating
impacts.
• Corporateactions(asillustratedbythe« WeAreStillIn »initiative)areabigpartofthe
solution
• Ratingsareacriticallevertostrengthentheirimpact,acrossthehundredsof
thousandsofcompaniesparticipatinginglobalsupplychain.
SustainableProcurementContext
ECOVADISCONFIDENTIAL– DocumentClassification:Public
6
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
ECOVADISCONFIDENTIAL– DocumentClassification:Public
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
7
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
ECOVADISCONFIDENTIAL– DocumentClassification:Public
8
Whatareyourcurrentchallenges?
Getting100’sofBuyersTOINTEGRATE
CSRRISK intodecisions&process
Audits/compliancealoneareunableto
DRIVEIMPROVEMENTS
andlastingchangeinsupplierpractices
SCALINGUPtothousandsofsuppliers
whilecontrollingthecostsofyourprogram
PressuretoDETECTPROBLEMS
earlier,
andavoidBRANDDAMAGE
!
ECOVADISCONFIDENTIAL– DocumentClassification:Public
9
Procurementisevolving
Price
Quality
On-TimeDelivery
Sustainability
10
Highlightsfrom2017EcoVadis /HECBarometer
ECOVADISCONFIDENTIAL– DocumentClassification:Public
Thesurvey’spopulationconsistedof
120companies
• 75%basedinEurope• 25%inFrance• 18%inU.K.• 12%inU.S.
11
Companieswithannualrevenuesof
atleast500millionEuros
• 25percentabove25billion€• 42%between5billionand25billion€• 34percentunder5billion€
Mainactivitysectorsrepresented• 14%fromthemanufacturingsector
• 13%retail&consumergoods
• 12%services• 9%ICT/Telecommunications
Summaryofthestudy
ECOVADISCONFIDENTIAL– DocumentClassification:Public
12
Sustainable Procurement Drivers
Whencomparingtoour2013study,thisyearwe
seeaconvergencebetweentheUSand
Europe onthesametopthreedriversandprioritiesforSPprograms:Brand
Reputation,RiskMitigation,andCompliance.
ECOVADISCONFIDENTIAL– DocumentClassification:Public
Whatisthevalueofevaluatingyoursuppliers?
• Brandprotection
• Supply chain disruptions
• Fines+litigations
ManageRisks
13
• Improved TCO
• Reduced over-specification
• Reduced consumption
ReduceCosts
• Product/Servicedifferentiation
• Accessnewmarkets
• Income from recycling projects
IncreaseRevenue/Innovation
ECOVADISCONFIDENTIAL– DocumentClassification:Public
14
Sustainable Procurement Leaders– Enhanced Benefits
“Idobelieveinthecorrelationbetweensustainabilityandinnovation.Whenasupplier
demonstratestheircommitmenttoCSR,theyaredemonstratingtheirabilitytolookforward- thattheyhavealong-termvision.Ithinkthisisfundamentaltothecapacity
forinnovation.”Top5BeveragesCompany
Keyelements forasuccessful SPProgram
ECOVADISCONFIDENTIAL– DocumentClassification:Public
Acomplex challenge…
CO2footprints
Buyers Suppliers
● Time-consuming● Noreliableindicators● Notscalable ● Duplicateefforts● Nostandards● Littlefeedback
16
ECOVADISCONFIDENTIAL– DocumentClassification:Public
Simple&Standarized Solutions
17
Buyers Suppliers
● Reliableindicator● Actionablescorecards● Leverageonsuppliers ● Identifyimprovementareas● Competitionbenchmark● Reduceadministrativeburden
Reliable
Ratings
ECOVADISCONFIDENTIAL– DocumentClassification:Public
CSRCategoryRiskMapping
Allcategoriesscreenedinordertoassessthe
inherentrisklevelsforsuppliers
EcoVadis CSRRating
Evaluationoflargenumber ofsuppliers athigh
risk levels
CorrectiveActionPlan
Monitoringtheperformanceofevaluated
supplierswithintheEcoVadis platform
On-siteAudit
EcoVadis Auditmoduleformonitoringon-site
auditsoflimitednumberofsupplierswithsevere
risklevels
18
Entiresupplieruniverse
Filteredbycategory/countryrisk
Highriskcategories&countries:
RatedbyEcoVadis
LowormediumRiskRatingOngoing
PerformanceMonitoring
HighRiskRatingOn-site
~50000suppliers
~3 000suppliers
~500suppliers
~50suppliers
Asmarter way todeploy
ECOVADISCONFIDENTIAL– DocumentClassification:Public
19
Maintools toboost Sustainable Procurement
"Theauditandtheself-assessmentquestionnairesweregettingheavy.Inaddition,thisapproachdidnotgiveusthedesiredresults.Witharobustevaluationsolution,wehavereducedthevolumeand
optimizedthequalityofourauditprogram."
Companyrankedamongthetop20industrialconglomerate
companies
ECOVADISCONFIDENTIAL– DocumentClassification:Public
20
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
ECOVADISCONFIDENTIAL– DocumentClassification:Public
21
GlobalSupply ChainCoverage is Expanding
“Multi-tiervisibilityandtraceabilitytotheoriginsofoursupplychainsandtransparentreportingonthistoourstakeholdersis
rapidlybecomingarequirementforus”.Top5Pharmaceutical
Company
ECOVADISCONFIDENTIAL– DocumentClassification:Public
22
Supplierperceptionsandengagement
“Ibelievethatsupplierengagementandawareness
campaignscanonlybesuccessfulifallpartsofthebusinessthatinteractwith
suppliersarealigned,otherwiseyouaredestinedtosendmixedmessagesthatwillputyourlevelofcommitment
inquestion.”
- 10MedicalEquipmentCompany
ECOVADISCONFIDENTIAL– DocumentClassification:Public
23
CSRis built into aday today job
Strategyisgloballycraftedbutlocallydeveloped
throughadiverse
CEO&CPOcommitmentandfullsupport
IntegrateassessmentintoRFP’sandcontracts
Trainingsandsupportforbuyersandsuppliers
CSRisbuiltinsuppliermanagementprocess
ECOVADISCONFIDENTIAL– DocumentClassification:Public
24
CaseStudy Atos:Howtoengagewith suppliers
EcoVadis scoreincludedinoneach
supplieroverallassessment
CSRcontractclause:Suppliercharter
DirectCSRdiscussionwithSuppliers(It’s
crafteddependingontheirCSRmaturity)
MinimumEcoVadis scoredefinitionforkey
suppliers
ECOVADISCONFIDENTIAL– DocumentClassification:Public
25
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
ECOVADISCONFIDENTIAL– DocumentClassification:Public
26
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
ECOVADISCONFIDENTIAL– DocumentClassification:Public
28
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
ECOVADISCONFIDENTIAL– DocumentClassification:Public
29
Assessment should be supplierspecific
ActivitiesofcallcentersManufacturingofpaper
andcardboard
TheCSRrisk evaluation
should be focused onthe
material elements for
each supplier
ECOVADISCONFIDENTIAL– DocumentClassification:Public
30
KeyElements foraReliable Rating
CSRexpertsneed
tobeinvolvedin
theassessment
processinorderto
ensurethatresults
arerelevant
ECOVADISCONFIDENTIAL– DocumentClassification:Public
CSRRatings:EcoVadis Example
31
32
ThankYou!
AlejandraMiranda
M.+33781895547
NicolasDussert
M.+33632558406