Saint Gobain - Registration document 2016

4 AN EFFICIENT AND RESPONSIBLE GROUP 2. Operational excellence policies

already in place to suppliers in order to favor the suppliers’ commitment. The Responsible purchasing policy integrates also a continuous training program of purchasing managers on the anti-bribery, work conditions of suppliers’ employees, forced labor or child labor. A constant information on the sustainable development stakes are also communicated. Principles of Conduct and Action, with a specific attention to and external, of the objectives and principles of this policy. To draw up and convey the Group’s Responsible Purchasing Policy within the Building Distribution Sector, a rigorous and methodical measure has been introduced. The aim is to obtain acceptance by all the parties involved, both internal It is initially applied to distribution Category Managers, whose role is to express the customer’s needs in terms of products and solutions, to then select the best suppliers meeting these needs in the best possible way. Finally, they have to ensure the availability of these products and solutions in the Sector’s distribution network. In order to do this, all the Category Managers are initially trained in Responsible Purchasing before signing the Purchasers Charter. They thus undertake to observe the principles of integrity, professionalism, spirit of service, policy has been applied in two stages. The first stage, between 2012 and 2013, concerned the “Strategic Partners”. The second stage, launched in 2014, concerned the “National Strategic” suppliers. responses given, a constructive exchange takes place with the supplier in order to jointly draw up action plans incorporated within a measure for continuous improvement, with characterized, quantified and planned commitments. The standards and rules. They also undertake, within the scope of the Sector’s Responsible Together program, to complete a self-assessment questionnaire every two years. Based on the Charter, agree to scrupulously monitor the requirements of responsible development with regard to the environment, social policy, legality and compliance of the products and manufacturing processes with the national and international confidentiality and competition law and to disseminate the Responsible Purchasing Policy among their suppliers. The partner suppliers, who are signatories to the Suppliers The suppliers known as “Strategic Partners” are those with whom a strong international partnership is built year after year; the “National Strategic” suppliers are those on whom the Sector’s brands rely nationally. At the same time, risk mapping takes place and the Building Distribution Sector conducts factory audits on selected suppliers whose aim is to assess in particular their management system and the environmental, social and legal recommendations on compliance with an expected effective date or paths for improvement. aspects of the production activities and to examine their production capacities in terms of volume and quality. These audits also relate to the supply chain upstream. Following an audit, the supplier receives a report as well as Trade responsible purchasing b)

mapping the CSR risks; ‹

the risks; evaluating the CSR performance of suppliers to classify ‹ building common progress plans with suppliers. ‹ This general framework is adapted by the operational teams based on the specific features of the trade and non-trade was reviewed in 2016, in a coordinated way. Risks connected to the country of origin and risks connected to the purchase categories are integrated. The risk on human rights, in particular the fight against the forced labor and the child Following this process, the methodology to map CSR risks purchases and incorporates the strategy for the development of long-term partnerships with suppliers. constructive dialogue for improvement. evaluated to determine priorities for action and engage a evaluation is based on international and recognized sources. The risks connected to suppliers are then identified and labor and those connected to bribery are specially evaluated. The risks of purchasing categories integrate the environmental performance in particular the carbon and water footprints and health and safety. The mapping improvement plans. constant dialog with the supplier and leads to the establishment of action plans and CSR performance on site is organized. The entire approach falls within a allow the identification of suppliers “at risks”. Depending on the level of risks identified, the supplier is answering to a questionnaire based on documentation verified and evaluated by a third party and, depending on the results; a social audit This CSR risk analysis deployed in the non-trade purchasing The Responsible Purchasing Policy is applied to non-trade suppliers via the R-Net online platform, a private website totally dedicated to the subject of Responsible Purchasing. Suppliers have access to R-Net to acknowledge receipt of the Saint-Gobain Suppliers Charter, to send essential supporting documents electronically (wood certificates, quality certificates, ISO standards), to answer self-assessment questionnaires, to obtain all information on Saint-Gobain’s Responsible Purchasing guidelines and to access details of their CSR evaluations or, where appropriate, the social audits. The 2017-2021 objective is to assess the CSR performance of almost all suppliers deemed to be a CSR risk and achieving annual consolidated net sales of more than €100,000 with the Group. With regard to social audits, the objective is to the agreed periods. conduct around 40 to 50 audits a year, mainly in the emerging countries. These audits may lead to de-listings if the corrective plans necessary are not implemented within The department of non-trade purchasing initiated in 2016 a program to audit on site the suppliers identified at risk by the Group purchasing managers. Firstly, the program is deployed in emerging countries (Brazil, China, India). The objective is to propose an alternative to the CSR risk evaluation tools Non-trade responsible purchasing a)

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016