Groupe Renault - 2019 Universal Registration Document

RENAULT: A RESPONSIBLE COMPANY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 24, 2020

GROUPE RENAULT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

ETHICS AND GOVERNANCE

Regular evaluation procedures for suppliers and subcontractors  DV2b  To regularly evaluate its suppliers and subcontractors, Groupe Renault uses: purchasing processes which incorporate CSR criteria into P selecting suppliers and subcontractors to enter its panel but also for awarding new contracts; an Internet platform (through an external solution) to assess P suppliers’ and subcontractors’ CSR policies and actions, and to incorporate the CSR performance of suppliers into purchasing decisions. For all subjects relating to the content of these documents, any uncorrected non-compliance could result in measures being taken that may include the termination of relations with the Company in question. serious infringements  DV3b  In 2018, in the context of mitigating risks and prevent serious infrigement, Groupe Renault carried out 45 social audits of supplier sites performed by three external companies in six countries, including Algeria, China, India, Romania, Russia and Turkey. The audits showed that in 2018, for all reports produced by external auditors, of non-compliance was identified in the areas of health and safety and working conditions. The main areas of non-compliance were fire detection systems, electrical installations, lack of access to certain emergency exits and non-compliance with minimum wage legislation. The countries with the greatest number of non-compliance cases were Turkey, India and China. In 2019, there was a specific emphasis on the monitoring of corrective action plans put in place by the suppliers with the lowest scores in the 2018 audits, with mandatory re-auditing for these suppliers. In addition, a comprehensive new CSR audit campaign (human rights, working conditions, environment, business practices, etc.) with 36 other suppliers at “significant” risk was conducted in 2019 by an accredited external audit firm. The main non-compliances identified by these audits fall into the fields of health & safety, effluent and waste management, together with those concerning management systems. The highest numbers of CSR non-compliances were recorded in India and in Turkey. The implementation of corrective actions for these suppliers will be closely monitored in 2020. Finally, in 2019, extra-financial performance has been strengthened by a greater weighting in the Purchasing department’s decision- making processes, for all Group suppliers, based on three ESG (Environmental, Social and Governance) focus areas. 2.5.2.4 Actions to mitigate risks and prevent 2.5.2.5

implementing the fundamental social rights mentioned in chapter 1 of the Framework Agreement in their own companies and encourages them to do likewise with their own suppliers. If necessary, corrective action plan are put in place with the support of Groupe Renault; Renault Green Purchasing Guidelines (June 2018). This document P is distributed to all Groupe Renault suppliers, and describes requirements in matters of environmental management, policies on chemicals and recycling; Groupe Renault policy on the Supply of cobalt and minerals from P conflict-affected and high-risk areas (2019). This policy provides suppliers and their subcontractors with details of products that may contain such minerals, and the Group’s expectations as regards human rights and child labor in the supply chain. The purchasing function also has a dedicated Code of good conduct which complements Groupe Renault’s code of ethics. This document is available on the Group’s intranet site. It is aimed at all managers and employees in the Purchasing department and the Alliance Purchasing Organization (APO), and at anyone who is in contact with suppliers and/or who has an influence on purchasing activities within Groupe Renault and/or for Groupe Renault. The code applies to all Groupe Renault purchasing processes and, in particular, to compliance with Renault’s strategy, to selecting suppliers, reviewing performance and, more generally speaking, to any contact or communication with suppliers. Supplier risk mapping to identify, analyze and prioritize risks  DV1b  Under the law on the duty of vigilance (section 2.1.6), Groupe Renault uses in particular a mapping of the risks of suppliers with whom an established commercial relationship exists. In terms of risks relating to human rights and fundamental freedoms, health and safety of persons, the environment, ethics and compliance, two areas have been singled out for analysis: risks relating to families of purchases; P parts. The families of purchases have been classified according to P risks; services. The families of purchases have been included in a P nomenclature produced by an external service provider based on the criteria of the law on the duty of vigilance; country risks. The mapping used was produced by an external P service provider based on the criteria of the law on the duty of vigilance. The combination of these two risk factors has enabled supplier and subcontractor sites to be ordered according to four levels of criticality: “low”, “medium”, “high” and “very high”. For those parts production facilities or service provision entities representing the highest potential risks and which have never undergone a CSR assessment, or for which the CSR assessment is not at the required level, external companies carry out audits on the ground. In order to reduce the risks, these sites are audited based on a triennial plan (2018/2019/2020). 2.5.2.3

02

227

GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019