SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

An efficient and responsible Group Operational excellence policies

The Responsible Purchasing policy also integrates a continuous training program of purchasing managers on the Principles of Conduct and Action, with a specific attention to anti-bribery, work conditions of suppliers’ employees, forced labor or child labor. A constant information on the sustainable development stakes are also communicated. In 2017, the Department of Non-Trade Purchasing issued a “Best Practices” brochure for all purchasers, to remind them of the CSR best practices to be built into the whole of the purchasing process. This document incorporates the recommendations of the new ISO 20400 Sustainable Procurement standard. Trade Responsible Purchasing b) The Group’s Responsible Purchasing policy applies to trade purchasing within the Building Distribution Sector according to the same principle of risk assessment, identification and mitigation. It is initially disseminated at the level of distribution category managers, whose role is to express customer’s needs in terms of products and solutions, to then select the best suppliers meeting these needs in the best possible way. Finally, they have to ensure the availability of these products and solutions in the Sector’s distribution network. In order to do this, the first stage of internal stakeholder buy-in involves training and communication. Category managers are trained in Responsible Purchasing before signing the Purchasers Charter. They thus undertake to observe the principles of integrity, professionalism, spirit of service, confidentiality and competition law and to disseminate the Responsible Purchasing policy among their suppliers. In addition, a specific e-learning module was launched in late 2017 in order to reach a larger number of purchasers while taking a pragmatic approach. A community of internal players in the field provides a forum for discussion of the challenges of sustainable development and purchasing. The partner suppliers, who are signatories to the Suppliers Charter, commit to scrupulously monitor the requirements of responsible development with regard to the environment, social policy, legality and compliance of the products and manufacturing processes with the national and international standards and rules. They also undertake, within the scope of the Sector’s "Responsible Together" program, to complete a self-assessment questionnaire every two years and to provide the documents that demonstrate their buy-in for the principles of the Suppliers Charter. At the same time, the Building Distribution Sector conducts factory audits on selected suppliers whose aim is to assess in particular their management system and the environmental, social and legal aspects of the production activities and to examine their production capacities in terms of volume and quality. These audits also relate to the supply chain upstream.

Following an audit, the supplier receives a report as well as recommendations on compliance with an expected effective date or paths for improvement. Starting from 2018, the Building Distribution Sector will be part of the Group’s supplier audit program in order to undertake additional audits of certain suppliers, identified on the basis of the new risk mapping.

Purchases based on the 2.2.3 competitiveness factor Non-trade Purchases a)

Non-trade purchases are divided into five overall families: production purchases, investment purchases, transport purchases (on sales and on supplies), energy purchases and general purchases (general expenses, non-production services, etc.). The high number of non-trade suppliers reflects the great diversity of Saint-Gobain’s activities. The non-trade purchases rely on a community of more than 640 professional purchasers, trained in purchasing practices based on the various categories of purchases and positioned within the various levels of the Saint-Gobain organization: Group, General Delegations, Activities, countries, companies and sites. This collaborative and professional community of purchasers operates at the service of the Group’s operations and is recognized as a key factor of the Group’s competitiveness and innovation. A specific leadership program has been developed, World Class Purchasing (WCP), in order to strengthen the industry and improve the contribution made by the Purchasing Department to Saint-Gobain’s performance, particularly in the field of responsible purchasing. Trade Purchases b) Trade purchases are purchases of products made by the brands and entities of the Building Distribution Sector with a view to meeting and serving customer requirements throughout their path. The Building Distribution supplier portfolio comprises 26,000 suppliers from more than 50 countries distributed over 15 markets, reflecting the various markets of customers of the Building Distribution Sector brands. An annual segmentation of purchases makes it possible to identify the “Strategic Partner” suppliers with whom a strong international partnership is built year after year; the “National Strategic” suppliers on whom the Sector brands rely nationally; and the “Niche” suppliers who contribute particular products that are essential for the product mix of a region.

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