Sanofi works closely with its suppliers and is committed to selecting goods and services that are produced and provided in compliance with demanding environmental, social, and ethical standards which are set out in the Sanofi Suppliers' Code of Conduct. Social responsibility is promoted in the sourcing and utilization of materials and services.
Sanofi's procurement teams are expected to meet the standards set out in the Supplier Relationships Charter, which builds on the Sanofi Code of Ethics in their commercial relationships with suppliers and governs issues related to invitations, gifts, meetings and correspondence. Sanofi is committed to carefully monitoring the quality of raw material and the practices of our suppliers.
Sanofi is a member of the Pharmaceutical Supply Chain Initiative (PSCI) which aims to improve the practices of suppliers in the pharmacy sector by defining common requirements, carrying out support programs and training for suppliers, and pooling audits.
In November 2020, PSCI hosted its first virtual annual general meeting. 45 member companies and partners thus shared a stimulating session on supply chain resilience in a (post) COVID-19 world. This meeting also allowed the definition of the new strategy as well as the announcement of the board of directors of PSCI for 2021.
Sanofi is also a member of the Together for Sustainability initiative (Tfs) , a global program that aims to assess and improve the sustainable sourcing practices of suppliers by conducting assessments and audits, the results of which are shared among members on a collaborative platform. online.
The Responsible Purchasing approach requires suppliers to respect Sanofi's commitments in terms of human rights, health, safety and the environment via the Suppliers code of conduct. This code of conduct was updated in 2020 by including a data privacy subject and asking suppliers to also engage their suppliers. Additionally, anti-corruption due diligence is performed before engaging with risky suppliers.
All of the 250 purchasing categories were assessed in 2018 and rated in relation to their inherent risk in terms of health and safety (score from 1 to 4), the environment (score from 1 to 4) and human rights (score from 1 to 4). The inherent risk is the external risk linked to the commercial activity, regardless of its country of operation, that the suppliers of the considered purchasing category may infringe the health and safety of persons or the human rights of their workers, or to the environment.
In 2020, we assessed 212 suppliers. Of these, 180 were reassessed, 54% of which improved their score following a corrective action plan.
Sanofi is engaged to promote supplier diversity as showcased by the numerous initiatives worldwide upholding the development of regional and local territories, the establishment of well-balanced partnerships with small and medium sized suppliers, and the enforcement of ethical and CSR best practices.
In France, Sanofi engages with Small and Medium Sized Enterprises
In France, we ratified the national “Charter of intercompany relations between large contractors and small/medium-sized enterprises (VSE-SMEs).” This charter sets out the commitments for responsible purchasing and aims to build mutual trust and promote innovation between suppliers and customers.
In the U.S., we aim at promoting a supplier base that mirrors our patient base
The Supplier Diversity Initiative was created to develop mutually profitable business relationships within the communities we live and serve, while promoting continued innovation and an entrepreneurial spirit, creating value for our business. It is reflective of our workforce, patients, customers and supplier base. Economic inclusion and job creation within diverse groups will lead to better access to medicine and improvements in healthcare.
We, at Sanofi Procurement, are committed to doing everything possible so that the relationships with our suppliers are governed by mutual trust while respecting our respective rights and obligations.
In order to formalize this commitment, Sanofi has placed an Internal Mediation role outside the Procurement organization. Suppliers may apply for Internal Mediation as a last recourse after having exhausted all other means to solve the difficulties that have been encountered during the business relationships with Sanofi.
The Mediation key tasks are to:
Facilitate the coming together of the parties with neutrality, impartiality, and confidentiality to help them identify a solution
Defend the agreement and not the parties. In this respect, the Mediator is neither judge nor arbitrator and does not give an opinion on the outcome of the dispute
Relay internally the problems that are raised and the solutions provided as part of an approach for continuous improvement The Internal Mediation process undertakes to respond within a maximum period of one month from the date of receipt of the request.