Supplier compliance with CSR commitments is primarily ensured by a mechanism prioritising assessments based on risk mapping covering all of EDF’s purchasing categories, limited to the purchases covered by the Group Procurement Department.
| Enhancing the supplier risk map |
On this basis, the Group Procurement Department enhanced the performance of its risk analysis, implemented in particular in accordance with the “Duty-of-Care” Act. The new method takes into account all aspects of CSR (environment, working relations and conditions, human rights, ethics and compliance). Its ultimate aim is to determine the degree of residual risk and identify actions for the supplier. The risk analysis encompasses all procurement categories, covering some 11,000 suppliers. |
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Inherent risks and residual risks (2) are assessed per purchasing categories on a scale of 1 to 4: low, material, major or critical risk. Risk assessment is based on the business of the supplier; their geographical location is also a significant risk assessment component.
Any critical residual risk in the assessed segments can be secured using countermeasures implemented prior to contracting, the contractual clauses and contract monitoring.
Major residual risks have been identified in the various sectors of purchasing, mainly concerning safety, ethics, waste, the use of rare materials and human rights. 15% of the purchasing segments analysed are classified as having a major residual risk, 50% are classified as having a material residual risk and 35% are classified as having a low residual risk.
The largest procurement categories in financial terms for which major residual risks are deemed to remain include the following:
Some less financially significant categories are also included, such as airline tickets. More than 97% of its purchases are made in France and 98.5% in Europe.
In 2021, supply chain-related human rights risks were clarified for the procurement of textiles, IT hardware, Instrumentation & Control, and solar panels with respect to the risk of forced labour.
Supplier monitoring includes a CSR strand and starts with an internal assessment of services. Supplier monitoring is mainly carried out by the Division or Contract Management, which uses Performance Assessment Sheets and Supplier Assessment Sheets.
| 2021 | |
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| Number of internal assessments of services | Number of internal assessments of services 2021 ~11,000 |
| Number of suppliers assessed | Number of suppliers assessed 2021 ~1,500 |
These audits are completed and documented by the supplier and then systematically verified by an independent body, French standards agency AFNOR. Questionnaires cover the entire scope of CSR; some are custom-designed to take issues specific to a given category into account. In 2021, most questionnaires were addressed to suppliers in at-risk categories (mobility and nuclear facility service providers). Some suppliers have also been interviewed following a request by Procurement Category Managers (accommodation). In the last quarter of 2021, the GPD developed a specific human rights questionnaire with AFNOR. This questionnaire was sent out to suppliers with a contract in progress belonging to procurement categories listed in international reports on failures to observe human rights and/or specifically named therein in the fields of textiles, electronics, Instrumentation & Control, and IT. In 2021, EDF Renewables sent out a supplier questionnaire on human rights in respect of solar panel procurement.
At the end of 2021, 3,000 suppliers were questioned using the Acesia platform, and nearly a thousand of them have been controlled. In 2021, the assessments were “satisfactory” for 63% of the audited questionnaires. The decision to evaluate a supplier is based in particular on the supplier risk map, business line and purchaser requirements, and contracts in progress.
This tool makes it possible for purchasers and suppliers to share an approach of continuous improvement in Corporate Social and Environmental Responsibility.
| 2021 | |
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| Verified documentary assessments verified (completed or in progress) | Verified documentary assessments verified (completed or in progress) 2021 139 |
(1) This monitoring is performed from supplier qualification onwards. For example, EDF Renewables assesses its suppliers of strategic wind and solar energy equipment in its qualification processes, comprising selection criteria in all CSR fields. A Chinese turbine supplier that qualified for the very first time was only selected for its ISO 14001-certified plants.
(2) Residual risks are the risks remaining after countermeasures have been adopted.
