Saint Gobain - Registration document 2016

RISKS AND CONTROL

2. Internal control

178

SAINT-GOBAIN

- REGISTRATION DOCUMENT 2016

WWW.SAINT-GOBAIN.COM

Corporate departments

2.2.4

defining internal control strategies and procedures in their

responsible for setting up an internal control structure and

area. To this end, they:

Compagnie de Saint-Gobain’s corporate departments are

internal processes;

identify and analyze the main risks associated with their

the Internal Control Reference Framework;

define appropriate controls based on those described in

controls within their area;

inform and train the employees responsible for internal

the results of internal audits.

analyze any internal control weaknesses or incidents and

internal control system within the Company entities.

The corporate departments are also responsible for the

Corporate departments

Main responsibilities

Reference standards and/or measures

2016 key figures

and Medical Department

Safety (EHS) Department

Environment, Health and

Promote and coordinate

Group EHS policy

principles

reference framework

Monitor the application of EHS

EHS reference framework and standards

Integrated EHS audits

Self-diagnostic tool

OSHAS 18001 and ISO 14001 standards

° 43 “12-step” audits

Industry audits:

° 135 “20-step” audits (1)

Distribution audits:

° 448 ESPR audits (2)

Department

Information Systems

information systems and

Define Group policy for

computer network security

annual self-assessment plan

Promote and coordinate an

practices

Develop rules and best

Minimum security rules

Technical standards

Development standard for secure web

applications

Note on the Cloud

Datacenter security rules

ITAC reference bases

SAP users control tool

See chapter 7, section 2.4.4, General

security

doctrine on information systems

Purchasing Department

Purchasing program, an

Manage the World-Class

approach focusing on

department

purchasing performance,

supplier innovation

professionalization and

multi-country purchasing

Execute multi-business and

purchasing activities in France

conduct multi-business

function in France and

Coordinate the purchasing

ISO 9001 standard with certification in

Energy for Saint-Gobain Purchasing

Raw Materials, Precious Metals and

Control Reference Framework (14 risks,

Purchasing process of the Internal

38 controls to be applied)

purchaser actions in 2016

Completion of 12,000 individual

technical purchases

24 internal audit assignments on

countries

63 Buy/Techs executed in 20 different

Risk and Insurance

Department

Define Group policy for

or distribution sites

property damage at industrial

insurance and monitoring its

Define Group policy for

implementation

programs

Steering centralized insurance

Prevention/ protection reference base

“Risks Grading” self-assessment tool

Doctrine memos

Risks and Insurance Intranet

485 site visits by prevention engineers

Risk Grading self-assessment

1,357 sites that have performed their

911 assessments of Building Distribution

ESPR audits

Sector sales outlets by, including 289

22 prevention training sessions

Regular field inspections

Department

Treasury and Financing

Define policy for financing,

banking relationships for the

market risk control and

entire Group

- for subsidiary activities

- for DTF activities

Procedures reference base

Daily reports (DTF) and monthly reports

(subsidiaries and DTF)

112,813 internal/external foreign

exchange transactions per year

per year

25,816 internal/external transfers issued

Financial Control Department

operating performance

of the Group’s results and

Implement continuous control

Participate in drawing up the

reviews

budget and quarterly budget

figures at all levels of the

Oversee monthly results

organization

Closely analyze and validate

restructurings

capital expenditure plans and

the financial consequences of

divestment, merger and

investment, acquisition,

Dashboards

Permanent relationship with

Delegations and Sectors

controllers

Oversight of the network of Group

tools

Implementation of common analysis

corporate departments and Sectors

Group reference base and notices to

Sectors and Delegations

Over 200 meetings per year with

participation of 150 employees

15 training sessions with the

215 DAC (Credit Authorization

Requests)

have been completed

58 planned acquisitions, 34 of which

70 divestments and mergers completed

Audits following a 12- and 20-step schedule for the Group’s industrial activities.

(1)

ESPR (Environment, Safety, Prevention of Risks) audit: specific to the Building Distribution Sector.

(2)