LEGRAND / 2018 Registration document

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CORPORATE SOCIAL RESPONSIBILITY AND DECLARATION OF EXTRA-FINANCIAL PERFORMANCE

ACTING ETHICALLY TOWARDS SOCIETY

4.3.2 – Issue no. 4: Ensuring responsible purchasing

R 4.3.2.1 FUNDAMENTAL PRINCIPLES AND ORGANIZATION

Focus: Legrand France, with Responsible Supplier Relationships certification, listening closely to its suppliers. In 2009, Legrand – through the CNA (French National Purchasing Council) – helped draft the “Responsible Supplier Relationships” Charter and was one of its first signatories. In 2012, Legrand was one of the first four companies in France to receive this certification, which was renewed in 2015 after an audit by ASEA, an approved consultancy. To factor in the commitments of its new 2019-2021 CSR roadmap and therefore maintain its proactive approach with respect to the new requirements of the “Responsible supplier relationships and purchasing” certification that has been part of the ISO 20400 process in France since 2017, Legrand will renew its commitment to this certification in spring 2019. The community of certified entities has created working groups that aim to make constant progress in terms of responsible practices with respect to suppliers. In 2018, Legrand took part in the “Actively listening to suppliers” working group and implemented its conclusions by carrying out a survey of 274 European suppliers with the help of the Wavestone consultancy. The aim was to gain an accurate picture of Legrand’s supplier relations from the point of view of suppliers, across 10 themes including the overall relationship, quality, logistics, communication, CSR and innovation. The results showed that 69% of suppliers surveyed regard Legrand as a solid partner, with the average “overall relationship” score being 3.62 out of 4. As regards CSR, suppliers regard Legrand’s commitments as robust and express a desire to do more work on common CSR issues. Procedure Formally, the Group manages its responsible purchasing strategy with its suppliers via its Purchasing Quality Management System (QMS), and specifically through: W Purchasing Specifications: a contractual document containing Legrand’s requirements for its suppliers, particularly in terms of compliance with the regulations and standards in force for both environmental and social matters. The document includes the Ten Principles of the Global Compact; W General Purchasing Conditions, which include a supplier mediation process in the event of a dispute;

Faced with the internationalization and globalization of its markets, Legrand – a signatory to the Global Compact – is committed to building the principles of sustainable development into its decision- making and its supplier relations, even though suppliers might potentially have a broad range of social and environmental practices. The Group Purchasing Policy establishes the principles of sustainable, balanced and mutually beneficial relations with suppliers, in line with Legrand’s values. Legrand’s responsible purchasing strategy is based on the principle that the Group’s ethical, environmental and social rules also apply to its suppliers and subcontractors, who are selected and managed in accordance with those rules. Legrand therefore expects its suppliers to subscribe to the same standards of responsibility as it does. For example, because Legrand is a member of the Global Compact, the Group’s suppliers are also encouraged to comply with the Global Compact’s principles. 60% of purchases from the Group’s panel are from suppliers that embrace these principles. The responsible purchasing policy is overseen by a Purchasing Department that uses a matrix structure and is ISO 9001 certified (Quality Management System). A sustainable purchasing manager within the Purchasing Department is responsible for monitoring and implementing responsible purchasing rules. The Group Purchasing Department produces reports on the amounts of purchases by supplier and by purchasing category. The Group’s purchases of rawmaterials and components represent around 32% of its sales. All purchases are made with two main types of suppliers: W Group suppliers, who, as major players in their market and key Legrand partners, support the Group in its international projects. Corporate buyers, Lead Quality Specialists and users establish a close, privileged and sustainable relationship with them. At the end of 2018, the Group was working with 450 Group suppliers satisfying multi-site and multi-country needs and accounting for around a quarter of the Group’s total purchases; W local suppliers that meet the specific needs of a site or Strategic Business Unit (SBU) and are managed by buyers at the sites or in the SBUs concerned.

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REGISTRATION DOCUMENT 2018