Group key performance indicator
In terms of purchases from SMEs located in France, the target range is between 22% and 26% of purchases by EDF and the distribution network manager, Enedis (1). The methodology associated with this indicator is described in section 3.6 “Methodology”. For 2021, this figure stands at 24.9%, within the target range.
Annual rate of procurement from SMEs in France (%)
- 2019 : 22.5
- 2020 : 23.4
- 2021 : 24.9
- Target : Between 22 and 26
3.4.2.3.2 Sustainable and balanced relationships
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 Procurement Department, which sets the general framework and manages the Purchasing function while respecting the management independence of network managers.
Improving the quality of supplier relations
| Strategic Supplier Manager |
As part of the reorganisation completed in late 2020, the GPD created new jobs to further improve the quality of its supplier relations. These new jobs included the position of Strategic Supplier Manager, the key point of contact for some 40 suppliers identified as strategic. The Manager establishes a trust-based relationship, encourages strategic alignment between EDF group entities and its suppliers, and facilitates the setting up of productivity and innovation partnerships on a win/win basis. Procurement Category Managers are responsible for relations with other suppliers. |
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| Responsible Suppliers and Procurement Charter |
On 2 December 2021, the Group’s Senior Executive Vice-President, New Nuclear Projects and Engineering signed the “Responsible Suppliers and Procurement” Charter in the presence of France’s junior Minister for Industry, who reports to the Minister for the Economy, Finance, and Recovery, at the 2021 World Nuclear Exhibition. Updated in October 2021, the Charter seeks to uphold the quality of client and supplier relations, as well as the values of solidarity, ethics, and trust. (2) |
| Responsible Supplier and Procurement Label (RFAR) |
On 30 November 2021, under the auspices of France’s Ministry for the Economy, Finance, and Recovery, for the third time running the accreditation Committee endorsed EDF by awarding the Group its Responsible Supplier and Procurement Label (Relations Fournisseurs et Achats Responsables, RFAR) for a three-year period. First secured in 2015, the Label, accompanying the ISO 20400 standard, recognises companies that maintain balanced, sustainable relations with their suppliers. |
Supplier policy
| Supplier Policy and Responsible Procurement |
The new supplier policy adopted in October 2021 to replace the Group Procurement Policy has a special focus on the Group’s commitment to maintaining robust, sustainable partnerships with its suppliers. It details the Group’s raison d’être and its CSR commitments with respect to responsible procurement, the use of sheltered and disability-friendly suppliers, local engagement, and supplier awareness-raising. The responsible procurement policy remains central to this approach, with the systematic inclusion of environmental, social, and human rights-related clauses in agreements. |
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| When implementing purchasing contracts, the Group Procurement Department ensures that financial balance is maintained with respect to suppliers, in particular through compliance with payment deadlines and pricing analysis and structuring actions. Each buyer shall sign the mandatory ethical undertaking which lists the principles to be complied with in relationships with current and prospective suppliers. |
(1) Enedis is an independently managed subsidiary.
(2) EDF was one of the first signatories of the Responsible Supplier Relations Charter. The goal of the action plan to ensure suppliers are paid more quickly, rolled out following an inspection by France’s Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) in 2019, is ongoing in 2021.