sustainable sourcing july 2011. nov 2011 sustainable development – sourcing
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Sustainable sourcing July 2011
Nov 2011
Sustainable development – Sourcing
Alstom sustainable development sourcing risk approach
CSR charter CSR assessments and audits of suppliers
SuppliersImprovement
Target : no supplier representing risk
Communication Learning People
Monitoring/reporting
Content
Implementation
Agenda
1st topic Sustainable sourcing : content Page 3
2nd topic Sustainable sourcing : implementation Page 21
3rd topic Page
4th topic Page
5th topic Page
Sustainable sourcing July 2011
What is sustainable sourcing for Alstom ?
Environment : get suppliers who prove they take care about environment through their products and process
Social : get suppliers who care about social conventions, namely working conditions and human rights, or who are in advance on social conditions
Ethics : get suppliers who respect fair business practises
Find suppliers who hold their own suppliers to these same standards
Alstom aims to have suppliers at least respectful with the international conventions and possibly good or best in class in :
Alstom aims at developing partnerships with suppliers capable to commit on these requirements and has set up objectives and measurement
Sustainable sourcing July 2011
Alstom sustainable development sourcing risk approach
CSR charter and/or contractual clause
CSR assessments of suppliers
Suppliers AuditsSuppliersDevelopment
Objectives
Target : no supplier representing risk
Charter 80%
Assessments 40%
Internal audits
Audits
Charter for sustainable development
• Principle : compliance with ILO ( International Labour Organisation) and other international conventions in particular with− Labour standards− Ethics− Environmental protection− Occupational health and safety
The acceptation of the charter by the supplier is a pre-requisite to any order from Alstom
The acceptation of the charter by the supplier is an Alstom’s instruction
Sustainable sourcing July 2011
Alstom sustainable development sourcing risk approach
CSR charter and/or contractual clause
CSR assessments of suppliers
Suppliers AuditsSuppliersDevelopment
Objectives
Target : no supplier representing risk
Charter 80%
Assessments 40%
Internal audits
Audits
Sustainable development assessment : Who
• Objective : −Every strategic supplier−Suppliers in main RFQ−Suppliers in risky countries or providing risky
commodities
Target : Suppliers representing 40% of Alstom’s spend should be assessed ( 3 years target).
Sustainable sourcing July 2011
Sustainable development assessment : constraints
Purchaser view
− High number of suppliers to address− Low awareness of complex and changing regulation.− Difficulty to set up questionnaires adapted to the different commodities− Time dedicated
Suppliers view
− Many different questionnaires to answer− Questionnaires often non adapted to the commodity− Some XL non convivial files− Few feed-back from the assessments. Necessity to industrialise our process
and Decision for cross-
sectors to out-source all suppliers SD
assessments to ECOVADIS
Sustainable sourcing July 2011
EcoVadis Scientific Committee(Includes members of GRI, WBCSD, INSEAD, HEC, CDAF, …)
Partners
EcoVadis
Technology CSR Research
“Companies should use databases such as EcoVadis that collect supplier audit data and provide buyers with a one-stop tool for evaluating suppliers against a
set of sustainability criteria”
United Nations Environmental Programme– Sept. 2008
Sample Customers
Sustainable sourcing July 2011
21 CSR indicators
Energy & GHG (CO2)Water
Biodiversity Local Pollutions
Materials, Chemicals, Waste
Product Use Product End of Life
Customer Health & SafetySustainable Consumption
Health & SafetyCSR Promotion
Working Conditions Labor Relations
Training & Career Management
Child & Forced Labor Non Discrimination
Fundamental Human Rights
Corruption & Bribery Anti-competitive practices
Fair & Responsible Marketing
Suppliers Environmental performanceSuppliers Social practices IV. SUPPLY CHAIN
26 000
I. ENVIRONMENT II. SOCIAL III. ETHICS
Policies - Actions - Results
Elements of CSR management systems taken into account
POLICIES
• Mission Statement / Policies• Endorsement of External CSR
Initiatives
ACTIONS
• Measures / Actions• Implementation / Coverage
• Certifications / Labels
RESULTS
• Reporting / KPI’s• 360 : Controversies /
Condemnations / Awards
Sustainable sourcing July 2011
A specific evaluation questionnaire is generated based on the supplier purchasing category, size and main countries of operations, and sent by email.
EcoVadis evaluation questionnaire C
ou
ntr
ies
Siz
e
Mechanical subcontracting
Casting of Metals
Rolling Stock
Road Freight
Co
mm
od
ity
Sustainable sourcing July 2011
EcoVadis Scoring and Analysis
ONLINEQUESTIONNAIRE
SUPPLIER SUPPORTING DOCUMENTS
360°(PRESS, NGO, TRADE UNIONS…)
SUPPLIER SCORECARD
ECOVADIS ANALYSIS TEAM
REGULATIONS MONITORING
ECOVADIS CSR ANALYSIS PLATFORM
PUBLICDOCUMENTS
Sustainable sourcing July 2011
Example on EcoVadis Plateform (fake)
Sustainable sourcing July 2011
Alstom sustainable development sourcing risk approach
CSR charter and/or contractual clause
CSR assessments of suppliers
Suppliers AuditsSuppliersDevelopment
Objectives
Target : no supplier representing risk
Charter 80%
Assessments 40%
Internal audits
Audits
Audits
Two types of audits have been developed as part of sustainable sourcing toolkit
• Light audits (or Internal audits) conducted by Alstom − A sustainable development part was developed with Alstom
qualiticians to complete qualification audits. Already 170 audits have been conducted.
• In-depth audits (or External audits) conducted by a third party : SGS− These physical audits are done by local auditors. These
on-site audits can be ordered • when EcoVadis is not adapted to the supplier ( small supplier in
emerging country), • when Alstom’s buyers or qualiticians fails to realize an action plan
due to lack of info, • when Alstom’s buyers or qualiticians have a suspicion of non
compliance.
Sustainable sourcing July 2011
Alstom sustainable development sourcing risk approach
CSR charter and/or contractual clause
CSR assessments of suppliers
Suppliers AuditsSuppliersDevelopment
Objectives
Target : no supplier representing risk
Charter 80%
Assessments 40%
Internal audits
Audits
Improvement action plans
• Suppliers considered non-compliant will be required to implement action plans or will no longer be able to work with Alstom
• Alstom provides support to our suppliers to improve their sustainable development level− Provide free information to the supplier on its SD
performance and strengths and weaknesses − Advice on the main improvement to undertake− Provide reassessment possibility− Training available on web
Sustainable sourcing July 2011
Status at March 2011
Criteria IndicatorActual FY10/11
Charter accepted Coverage 4 500
Assessments Number 808
Coverage 34%
Audits Number 170
Non compliant suppliers "closed"
Score suppliers 46
Sustainable sourcing July 2011
Agenda
1st topic Sustainable sourcing : content Page 1
2nd topic Sustainable sourcing : implementation Page 21
3rd topic
4th topic Page
5th topic Page
Sustainable sourcing July 2011
Change management
• Communication− Intranet : a dedicated portal our intranet− Web site and adapted presentation
www.alstom.com about us/corporate responsibility/sourcing− Transport supplier’s day; Power newsletter…− Instructions− Newsletter
Sustainable sourcing July 2011
Change management
• Communication− Intranet : a dedicated portal our intranet− Web site and adapted presentation
• www.alstom.com about us/corporate responsibility/sourcing− Transport supplier’s day; Power newsletter…− Instructions− Newsletter
• Trainings :− E-learning (general info), 1500 people already trained, available on Intranet− Training on EcoVadis and action plans, 3 hours learning through Webex : 400 sourcingmanagers trained. − E-learning on ethics
Sustainable sourcing July 2011
Change management
• Communication− Intranet : a dedicated portal our intranet− Web site and adapted presentation
• www.alstom.com about us/corporate responsibility/sourcing− Transport supplier’s day; Power newsletter…− Instructions− Newsletter
• Trainings :− E-learning (general info), 1500 people already trained, available on Intranet− Training on EcoVadis and action plans, 3 hours learning through Webex : 400
sourcing managers trained. − E-learning on ethics
• People− Roadmaps for evaluation of sourcing people− Highlight on best practices
Sustainable sourcing July 2011
www.alstom.com
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