APC 2007 Annual Report Download - page 90

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Location of main new suppliers
2007
China 130
South America 46
India 44
Improvement plans –
Planet & Society Barometer
Make 60% of total purchases from
suppliers who support the Global Compact.
2005 2006 2007
Rating 2 /10 2.66 /10 4.16 /10
Performance 12% 16% 25% 
Schneider Electric makes 80% of its purchases from 2,300
suppliers and sub-contractors. Purchasing volumes ex-
ceeded 9 billion in 2007.
Monitoring working conditions
among sub-contractors and suppliers
Schneider Electric uses a certification process called
Schneider Supplier Quality Management to select new
suppliers. The process is based on a questionnaire com-
prising nine sections, one of which concerns the environ-
ment and sustainable development.
The Group evaluates suppliers’ performance in the areas
of labor relations, social accountability (SA8000), environ-
mental protection (ISO 14001), compliance with the Re-
striction of Hazardous Substances (RoHS) directive and
support for the
Global Compact.
In 2007, the questionnaire was used to evaluate 375 new
suppliers, primarily in emerging markets.
Improving working conditions
among sub-contractors and suppliers
Support for the Global Compact is a major criterion in the
selection of new suppliers. The Group deployed a Global
Compact communication plan in 2007 comprising direct
and mail contacts to encourage its 300 key suppliers to
become signatories. As of December 31, 2007, 45% of
Schneider Electric’s partners had signed the Global Com-
pact or the Electronic Industry Code of Conduct (EICC).
Training for purchasing teams
As part of the program to internationalize the purchasing
function, the Group continued measures initiated in 2006
to recruit and develop skills in emerging markets during the
year, primarily in Asia and Eastern Europe.
Training new team members in internal processes and
methods is critical to maintaining a uniform purchasing
strategy worldwide. So far, more than 200 purchasing
agents have been introduced to the approach.
In 2007, the percentage of purchases from Global Com-
pact signatories rose to 25% from 16% in 2006.
In 2007, 63% of the workforce in France received some
type of training.
An average 23.4 hours were devoted to training in 2007.
The number of programs offering a diploma or certification
was twice as high as in previous years.
The Schneider Electric Industries/Schneider Electric France
corporate agreement on training signed in December 2005
was deployed starting in 2006.
In 2007:
270 managers and 70 human resources directors were
trained in managing employability in a 32-session course.
45 action plans to develop employability were launched.
77 day-long sessions to profile talents and professions
were organized at 45 sites.
The goal is to meet with employees and encourage them
to play an active role in their career development by fo-
cusing on Schneider Electric’s skills sets, external skills
sets and the support system for future growth.
Between January 2006 and December 2007, the Group
organized 81 Talents and Professions sessions.
Relations with
sub-contractors and suppliers
Framework
Sustainable development holds companies up to stake-
holders’ expectations. As a Global Compact signatory,
Schneider Electric takes sustainable development issues
into account when selecting suppliers. The Group encour-
ages suppliers and their subcontractors to join the Global
Compact themselves. By asking suppliers to meet its di-
rect requirements and make a public commitment, the
Group exposes them to the principles of sustainable de-
velopment. This approach also reflects Schneider Electric’s
commitment to promoting human rights, in accordance
with Global Compact Principle 1 (Businesses should sup-
port and respect the protection of internationally pro-
claimed human rights) and Principle 2 (Businesses should
make sure that they are not complicit in human rights
abuses).