3.3.3.2 EDF, a company with a responsible attitude to its providers
3.3.3.2.1 Responsible subcontracting
EDF’s subcontracting policy focuses on three main themes: providing providers with visibility and ensuring long-term supply partners; helping the Group improve its subcontracting practices by defining criteria to support decision-making in terms of strategy, economics, skills and social impact; developing socially-responsible subcontracting practices, particularly via the new Global Framework Agreement on the EDF group’s Corporate Social Responsibility (Article 4) signed on 19 June 2018 and the agreement signed on 19 October 2006 on socially-responsible subcontracting at EDF.
Group CSR agreement commitments
The Group may be required to use subcontractors with employees under contracts drawn up in a country other than the one in which it operates. In this case, particular attention is paid to human rights, working conditions, housing conditions and employee health and safety.
EDF group implements a compliance plan, including a map of the risks identified in relation to its suppliers and subcontractors, a risk assessment, and the risk mitigation measures taken.
At EDF, subcontracting is mainly used for industrial and commercial activities, and for information systems.
2019 was consistent with the trends seen in 2018 in terms of the types of business activities that were outsourced, with the exception of real estate management activities, for which the Company has adapted its business model. It now uses Property Managers for tertiary sites and Pilot Facility Management for tertiary buildings on industrial sites (Dalkia EN subsidiary).
In the industrial field
The improvement measures launched in 2015, reflected in the Progress Charter signed in June 2016 between EDF and the Professional Organisations representing the Group’s subcontractors, continued in 2019. Specifically, support for subcontractors, in place since 2017, will continue at the Flamanville 3 work site, with a view to reducing the workload. Support for subcontractors at sites being closed down is organised with local stakeholders. Personalised support was given to Fessenheim subcontractors in 2019.
In the field of Information Systems
In 2019, the Company continued to implement its industrial strategy in the IT field which determines the subcontracted share. This is particularly demonstrated by the proactive decision in favour of “Open Source” – unrestricted and free – software as well as the implementation of a fast-track contracting procedure with start-ups, which are vectors for innovation. Vigilance regarding training conditions and service provider turnover has been maintained, particularly as the total number of suppliers in the IT field continued to increase.
In the commercial field
In an increasingly competitive context, the Sales Division continued to use outsourcing to deal with variations in workload and cover extended hours, with value-creating tasks being directed towards internal consultants. EDF’s customer relations centres are located in mainland France, whether operated internally or externally, and are certified for customer relations and business development activities. Its in-house centres have chosen the “Afnor CSR Commitment” label.
3.3.3.2.2 Responsible purchasing
Procurement strategy
EDF works with around 12,800 suppliers each year.
The Group Purchasing Department manages EDF’s purchases, excluding fuel purchases and a portion of tertiary, IT and telecommunications purchases for certain subsidiaries. This totalled more than €8 billion in orders in 2019 (compared to 7 billion in 2018), excluding suppliers belonging to the EDF group, broken down as follows: €4.7 billion in engineering and production purchases, €2.2 billion in tertiary and services purchases and €1 billion in IT and telecom purchases.
In 2019, EDF’s top five suppliers accounted for 11.3% of the total amount ordered by EDF (excluding fuel purchases), and the top ten accounted for 18.1% of that amount. They are listed below, in alphabetical order: Alstom Power Service, Assystem Engineering and Operations, Capgemini Technology Services, CWT France, Endel SAS, Onet Technologies TI, Orano Démantèlement et Services, Sopra Steria Group, SPIE Nucléaire and Westinghouse Électrique France SAS. Suppliers are considered strategic based on a criterion of non-substitutability and the purchasing volume. EDF implements suitable monitoring actions.
In 2019, 95.23% of its purchases were made in France, 0.84% in the Netherlands, 0.7% in Germany, 0.6% in Switzerland, 0.44% in Singapore, 0.34% in the United Kingdom, 0.24% in Spain, 0.23% in Portugal, 0.22% in the United States, 0.21% in the Czech Republic, 0.17% in Belgium, 0.16% in Italy, 0.13% in Lebanon, 0.11% in Japan, 0.11% in Morocco and 0.27% in more than 50 other countries in Europe and worldwide.
Responsible purchasing practices
EDF’s policy
EDF’s responsible purchasing policy is at the heart of the Group’s social and environmental responsibility practices in its supply chain. It is structured by the Group Purchasing Department, which sets the general framework and manages the Purchasing function while respecting the management independence of network managers.
Under the Group Purchasing policy, as updated in 2019, its suppliers are required to comply with the Group’s values and all contracts must include environmental, social and human rights clauses. Suppliers may not take part in any tendering procedures unless they have signed a compliance undertaking(1), relating to bribery and corruption, money laundering, terrorist financing and conflicts of interest. The “Sustainable Development Charter between EDF and its suppliers”(2) forms one of the contract documents making up each contract and is binding on all suppliers and their own value chain. Even when these mechanisms are not directly applied, the major subsidiaries use equivalent methods of commitment adapted to their specific industrial or geographic characteristics. For example, all of EDF Renewables qualified suppliers have signed its sustainable development charter.
The Group Purchasing policy encourages local sourcing and value creation in the regions(3). More than 95% of purchases are made in France. Through this policy, it has a long track record of giving preference to relationships with SMEs and using the sheltered worker sector and structures for integration through economic activity. EDF makes full use of the new possibilities offered under Directive 2014/25/EU, allowing certain purchases to be reserved for sheltered programmes. In 2019, EDF’s purchases from the solidarity sector amounted to €11.3 million.
(1) https://www.edf.fr/sites/default/files/Lot%203/FOURNISSEURS/HOMEPAGE/Nos-processus/20190501_edf-declaration-et-engagement-de-conformite.pdf.
(2) https://www.edf.fr/sites/default/files/Lot%203/FOURNISSEURS/ACHAT%20RESPONSABLE/charteddedffournisseursv2042014.pdf.
(3) See section 3.3.1.2.6 "Creation of value in the regions".