NEOPOST_REGISTRATION_DOCUMENT_2017

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Corporate social responsibility

Social, societal and environmental information

they have to say about key processes and to respond quickly to any customer dissatisfaction. To support Neopost's digital transformation, two initial surveys on digital applications were conducted and the findings used to improve the Group's products, solutions, and related services. These customer satisfaction and loyalty surveys were also extended to all major applications in 2017. In addition, we are conducting a survey of our traditional customers' appetite for digital. On top of the actions carried out at Group level, many initiatives are implemented at local level by distribution entities. Commercial companies regularly communicate with their customers about company news and new offerings by sending emailings or newsletters. Throughout the year, they also organize events to present new products and solutions, and participate in trade fairs, conventions and conferences, which offer several opportunities to talk to their customers. In 2017, 66% of the entities completed studies or questionnaires related to CSR topics notably within the context of calls for tenders for customers, and for the purposes of audits or to fulfill legal obligations. This particularly concerns topics such as Human Rights (the fight against modern slavery in particular), ethics, working conditions, the environment, health and safety. Lastly, the Group wants to strengthen the protection and security of its customers' data and is preparing the implementation of the General Data Protection regulation as part of a working group that meets several times a year. Respect for intellectual property rights is also specified in the Group's Code of Ethics. Neopost extends its CSR and ethics commitments to all of its partners, which must comply with applicable laws and regulations, the conventions of the International Labor Organization and the Group's responsible purchasing policy. It is for this reason that the Supplier Code of Conduct developed in 2016 has been distributed among the Group's supplier network, as has the Policy against Modern Slavery and Human Trafficking. Neopost seeks to forge mutually beneficial partnerships with its suppliers, and to conduct responsible, ethical and sustainable business with them. The Group endeavors to work only with partners who share its values and have ethical standards equivalent to its own. Suppliers are selected carefully, fairly and equitably. They are chosen according to an established purchasing strategy, or via Relations with subcontractors and suppliers  and Responsible Purchasing Policy

call for tenders, or based on their ability to fulfill the Group's requirements in terms of quality, price, service, reliability, technology, safety, the environment and ethical values. The Group also endeavors not to create a situation of mutual dependency with respect to sales, technology and know-how. Neopost’s relations with its suppliers are based on frequent discussions and contact during which their mutual interests are reviewed and discussed. They take into account their respective corporate strategies and the volume of business in the short and medium term, while making sure that all regulatory, environmental and social constraints are respected. In accordance with its purchasing policy, Neopost puts particular emphasis on ensuring suppliers meet its requirements through discussions, site visits, audits and performance evaluations conducted by its teams. An audit is carried out during the selection process and may be repeated at a later date, if necessary. All of our OEM partners report annually to the Group focusing mainly on HSE (health, safety and the environment) to assess their performance in these areas. All of our OEM suppliers are ISO 9001, ISO 14001 and OHSAS 18001 or SA 8000 certified. In 2015, CSR audits were conducted at OEM partners in Asia (China and Malaysia) to study their CSR practices. These CSR audits covered issues such as forced labor, child labor, working hours, employment contracts and remuneration, training, discrimination, local economic development, and charitable initiatives.

Responsible procurement

82% Of suppliers evaluated in 2017 comply with the requirements of our Suppliers Code of Conduct

In addition, the Group launched an initial evaluation campaign with its main production suppliers in 2017. As such, 116 suppliers representing approximately 80% of the purchasing revenue were assessed. Of these, 82% met the requirements of the Supplier code of conduct. An action plan is required from suppliers which do not fully comply with the rules of the Group Supplier Code of Conduct. A second campaign will be launched in 2018 to assess 131 other suppliers and thus cover more than 99% of the amount of production purchases. Finally, with regard to the regulation of conflict minerals, a project policy is being drafted at the Group level.

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REGISTRATION DOCUMENT 2017 / NEOPOST