Sustainable sourcing July 2011
Sustainable development – Sourcing
Nov 2011
Alstom sustainable development sourcing risk approach
Target : no supplier representing risk
Content
CSR charter
CSR assessments and audits of
suppliers
Suppliers
Improvement
Implementation
Communication
Learning
Monitoring/reporting
People
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 ?
Alstom aims to have suppliers at least respectful with the
international conventions and possibly good or best in
class in :
 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 at developing partnerships with suppliers
capable to commit on these requirements and has set up
Sustainable
sourcing July 2011
objectives
and
measurement
Alstom sustainable development sourcing risk approach
Target : no supplier representing risk
CSR charter and/or contractual
clause
CSR assessments of
suppliers
Suppliers Audits
Internal audits
Objectives
Audits
Assessments 40%
Charter 80%
Suppliers
Development
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 prerequisite 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
Target : no supplier representing risk
CSR charter and/or contractual
clause
CSR assessments of
suppliers
Suppliers Audits
Internal audits
Objectives
Audits
Assessments 40%
Charter 80%
Suppliers
Development
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
Suppliers 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
− Many different
questionnaires to answer
− Questionnaires often non
adapted to the commodity
− Some XL non convivial files
− Few feed-back from the
assessments.
Sustainable sourcing July 2011
Necessity
to industrialise our process and
Decision for cross-sectors to
out-source all suppliers SD
assessments to ECOVADIS
EcoVadis
“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
EcoVadis Scientific Committee
(Includes members of GRI, WBCSD, INSEAD, HEC, CDAF, …)
Partners
Technology
CSR Research
Sample Customers
Sustainable sourcing July 2011
21 CSR indicators
I. ENVIRONMENT
Policies - Actions - Results
Energy & GHG (CO2)
Water
Biodiversity
Local Pollutions
Materials, Chemicals, Waste
Product Use
Product End of Life
Customer Health & Safety
Sustainable Consumption
II. SOCIAL
Health & Safety
CSR Promotion
Working Conditions
Labor Relations
Training & Career Management
III. ETHICS
Corruption & Bribery
Anti-competitive practices
Fair & Responsible Marketing
Child & Forced Labor
Non Discrimination
Fundamental Human Rights
Suppliers Environmental performance
Suppliers Social practices
IV. SUPPLY CHAIN
26 000
Elements of CSR management systems
taken into account
POLICIES
• Mission Statement / Policies
• Endorsement of External CSR
Initiatives
RESULTS
• Reporting / KPI’s
• 360 : Controversies / Condemnations
/ Awards
ACTIONS
• Measures / Actions
• Implementation / Coverage
• Certifications / Labels
Sustainable sourcing July 2011
Commodity
EcoVadis evaluation questionnaire
Road Freight
Mechanical subcontracting
Rolling Stock
Countries
Size
Casting of Metals
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 Scoring and Analysis
REGULATIONS
MONITORING
ONLINE
QUESTIONNAIRE
SUPPLIER SUPPORTING
DOCUMENTS
ECOVADIS CSR ANALYSIS PLATFORM
ECOVADIS ANALYSIS TEAM
Sustainable sourcing July 2011
PUBLIC
DOCUMENTS
360°(PRESS, NGO,
TRADE UNIONS…)
SUPPLIER SCORECARD
Example on EcoVadis Plateform (fake)
Sustainable sourcing July 2011
Alstom sustainable development sourcing risk approach
Target : no supplier representing risk
CSR charter and/or contractual
clause
CSR assessments of
suppliers
Suppliers Audits
Internal audits
Objectives
Audits
Assessments 40%
Charter 80%
Suppliers
Development
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
Sustainable sourcing July 2011
of info,
Alstom sustainable development sourcing risk approach
Target : no supplier representing risk
CSR charter and/or contractual
clause
CSR assessments of
suppliers
Suppliers Audits
Internal audits
Objectives
Audits
Assessments 40%
Charter 80%
Suppliers
Development
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
Indicator
Charter accepted
Coverage
Assessments
Number
Coverage
Sustainable sourcing July 2011
Actual
FY10/11
4 500
808
34%
Audits
Number
170
Non compliant suppliers "closed"
Score
suppliers
46
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 sourcing
managers 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