LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Acting ethically towards Society

W Systemformonitoringmeasuresandevaluatingeffectiveness: each year the Group evaluates all commitments made within the framework of the above priorities and publishes the results annually in the Registration Document. Furthermore, the set of indicators linked to the Group’s priorities and commitments are audited by an independent third party, which in 2017 was Deloitte et Associés. Legrand is therefore already compliant with the provisions of the “Duty of Care” law, since the vigilance plan has been in place and has been published since 2014. In addition, the Group publishes an annual report on the implementation of the plan covering three key themes. Group priority 2014-2018 To support 100% of higher-risk suppliers in implementing an improvement plan for environmental issues, fundamental rights in the workplace, and business ethics. Key performance indicator: the completion of overall risk analyses (2014); the percentage of suppliers with CSR risks covered by adequate action plans (from 2015 onwards). Annual targets:

representing more than 90% of the Group’s purchases. Each one has appointed a local representative to monitor actions relating to the responsible purchasing policy, in line with the Group’s strategy; W of the 215 suppliers monitored, 66 have action plans that are complete or near-complete (non-material residual risk), covering about 50% of purchases made with suppliers exposed to CSR risks; W of the 149 suppliers under analysis: 32 have already been audited and action plans are in place. No critical issues such as child labor were detected during these audits; W on-site audit results: no serious disparities such as child labor were detected during the audits. The action plans mainly highlight the need to produce periodically the necessary documentary information (environmental certificates, for example), the formalization of Health/Safety procedures (for example, hazard warning notices in factories, reminders to wear safety masks, gloves and footwear, preparation of an evacuation plan and associated drills, better chemicals storage, etc.). In 2017, a pilot initiative was carried out with Bureau Veritas and four suppliers in India and three in China. The suppliers, previously audited by Legrand’s local teams, were audited again by Bureau Veritas according to the SMETA social audit methodology. In India, this experiment revealed that Legrand’s local teams (purchasing/QSE experts) were mature enough to support suppliers on health and safety and environmental aspects, and that action plans were being implemented effectively. In October 2017, an awareness-raising session on these topics was organized at the Legrand plant in Sinnar with four local suppliers. In 2018, the deployment of the Human Rights Charter will make it possible to continue making visible Legrand’s commitments and its audit methodology on these aspects to continue to clarify the Legrand audit methodology on these aspects. The pilot with Bureau Veritas will be extended to other suppliers; W since 2015, five cases have resulted in a plan for withdrawal and removal from the Group’s list of suppliers. The suppliers considered as remaining vulnerable from a CSR perspective at the end of 2017 (because they have not yet been included in the verification process or they were working with an action plan that was not very advanced) represented less than 5% of the Group’s total purchases. The list of suppliers identified as exposing the Group to CSR risks may change depending on discussions with the Group’s subsidiaries and as action plans are refined. Involving and training buyers Parties involved in supplier relations, buyers, quality controllers, designers and experts apply the principles of the CSR strategy through purchasing procedures. One of the commitments of the purchasing policy is skills development for all stakeholders within the purchasing function. The induction module for new buyers includes a specific section on CSR with, in particular, an introduction to the code of ethics and procedures. Since 2015,

2014 2015 2016

2017

2018

Support for suppliers presenting risks

100% identified,

25% 50% 75% 100%

2017 achievement: The CSR risk analysis carried out in 2014 made it possible to establish the baseline and list of action plans to be implemented. It is refined as and when the procedure is rolled out. At the end of 2017, 87% of higher-risk suppliers were covered by an action plan.

2014 2015 2016

2017

2018

Target achievement rate*

100% 124% 131% 116%

*

Calculated against annual targets.

For 2017, the results of this analysis of suppliers at risk in terms of CSR were as follows: W 247 suppliers considered exposed to CSR risks were identified for the Group; W 215 are monitored by an action plan, i.e. as a minimum the documentary audit has been carried out. The remaining 32 will be included into the process in 2018, as they were only recently identified; W the 215 action plans were introduced for around 20 countries (including Australia, Brazil, China, Colombia, Egypt, France, Germany, Hungary, India, Italy, Mexico, Netherlands, Poland, Portugal, Russia, Turkey, United Kingdom and United States),

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REGISTRATION DOCUMENT 2017 - LEGRAND