Supplier evaluations / Responsible Procurement Collaborative Platform

Our new responsible procurement approach allows us to demonstrate that Procurement is strongly committed to reinforcing the CSR approach and achieving significant results by:

  • optimizing the CSR suppliers’ evaluation process by aligning it with procurement organization and needs and by avoiding the time and administrative burden of CSR questionnaires for suppliers and buyers;
  • strengthening compliance, risk management and transparency in regard to the evaluation process with our suppliers by systematically addressing CSR matters as a more and more valuable asset in the suppliers’ relationship management;
  • being focused on suppliers’ performance by better monitoring corrective action plans; and
  • measuring the CSR suppliers’ performance and delivering relevant KPI.

To make this approach more efficient for both Sanofi and our suppliers and to strengthen its integration into the Company’s risk-management and compliance processes, we made the choice of having a single and dedicated process based on CSR international standards.

We have entrusted this mission to our external partner, ECOVADIS, in order to benefit from proven CSR expertise as it operates a web collaborative sustainability rating platform enabling us to get an evaluation of our suppliers’ CSR performances.

We believe that this collaborative process will demonstrate our capability, jointly with our suppliers, to reflect on our CSR commitments and indeed fulfill Sanofi requirements as related to its strategic and operational procurement practices. We consider CSR assessment to be a constitutive element of the suppliers’ global performance measurement and a necessary step for supplier selection.

The supplier’s assessment is based on four themes and 21 criteria, which are:

  • environment: energy and GHG, local pollution, water, biodiversity, materials/chemicals/waste, product use, product end of life, customer health and safety, sustainable consumption;
  • labor practices and human rights: fundamental human rights, child and forced labor, non-discrimination, health and safety, working conditions, labor relations, training and career management;
  • fair business practices: corruption and bribery, anti-competitive practices, fair and responsible marketing; and
  • responsible supply chain: supplier’s environmental performance and supplier’s social practices.

Once the evaluation is completed, the CSR performance of each supplier is ranked from one (high risk) to hundred (high opportunity) at global and at thematic levels. The supplier’s score results from the collection and analyses of multiple data: self-assessment questionnaires that are customized according to the supplier’s industrial sector and size, supporting documentation (codes, charters, policies, certifications, dashboard, reporting) and information coming from NGOs, trade unions and media.

In addition to the quantitative results, strengths and weaknesses are highlighted and allow suppliers to create mandatory corrective action plans that feed into the system if the score does not meet Sanofi’s CSR requirements, which are a:

  • global score below or equal to 34 (out of 100);
  • thematic score (environmental, social and business ethics) below or equal to 20 (out of 100), regardless of the global score.

In practice, we will work with the supplier to formalize realistic corrective action plans for severe weaknesses. If significant violations are identified that cannot be resolved, Procurement may decide to conduct audits on site that are either internally or externally driven and may terminate the relationship.

The CSR evaluation should allow suppliers to:

  • meet our CSR expectations to be qualified and included in sourcing decisions;
  • benchmark and position themselves against sector peers by having a complete evaluation on their CSR performance;
  • benefit from a shared and transparent evaluation process allowing them to create and monitor their corrective actions;
  • re-use and communicate results to their own clients to enhance and develop the image and reputation of their company in the marketplace; and
  • avoid time-consuming paper-based evaluation questionnaires and facilitate the mobilization of their internal resources.

Distribution of suppliers enrolled in the 2012 supplier evaluation campaign

(By procurement domain and region)

In 2012, over 350 suppliers selected to be CSR-evaluated representing over 20% of the turnover associated to the 34 CSR highly risky procurement categories.

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