APC 2010 Annual Report Download - page 61

SUSTAINABLE DEVELOPMENT
RESPECT FOR THE ENVIRONMENT ANDFOR ETHICS, MOTORS OF ECONOMIC PERFORMANCE
3 Relations with subcontractors and suppliers
What is at stake
As a Global Compact signatory, Schneider Electric takes sustainable
development issues into account when selecting suppliers. The
Group encourages suppliers and their subcontractors to join the
Global Compact themselves. By asking suppliers to meet its direct
requirements and make a public commitment to the UN, the Group
exposes all of its supplier partners to the principles of sustainable
development. This is even more signifi cant given that the volume of
Schneider Electric purchases represents over 50% of its revenue,
i.e. EUR11.5billion in 2010.
This approach also refl ects Schneider Electric’s commitment to
promoting human rights in accordance with the Global Compact’s
Principle1 (Businesses should support and respect the protection of
internationally proclaimed human rights) and Principle2 (Businesses
should make sure that they are not complicit in human rights abuses).
2010 Objectives and Results
A priority objective was set in the Planet & Society Barometer
over the duration of the 2009-2011 One program: make 60% of
purchases from suppliers who have signed the Global Compact.
At year-end 2010, 42% of our purchases were from suppliers who
had signed the Global Compact’s 10 Principles or the EICC. This
represents an increase of 9points compared to year-end 2009.
Main action plans
The sustainable development purchasing approach is based on the
following four actions:
1. Publication of our commitment to sustainable purchases in
the Supplier’s Guide
Schneider Electric has published a charter for its suppliers, called
the Supplier Guide Book, which details its expectations in terms of
its suppliers. In particular, this charter includes a large paragraph on
the commitments of our suppliers to sustainable development in the
following four areas: the environment, working conditions, respect
for ethics and human rights.
2. Integration of the sustainable purchases approach into the
selection of new suppliers
Schneider Electric uses a certifi cation process called Schneider
Supplier Quality Management to select new suppliers. The process
is based on a questionnaire comprising nine sections, one of which
concerns the environment and sustainable development.
The Group evaluates suppliers’ performance in the areas of labor
relations, social accountability (SA8000), environmental protection
(ISO 14001), compliance with the Restriction of Hazardous
Substances (RoHS) and REACH directives, and support for the
Global Compact.
3. Required Commitment to the Global Compact by
Subcontractors and Major Suppliers
Commitment to the Global Compact is one of the criteria for
consideration as a major supplier of Schneider Electric. In accordance
with a public commitment to the United Nations, a statement on the
importance of joining the Global Compact is made by the Schneider
Electric purchase pilot to each major supplier of Schneider Electric.
4. Additional Assessment of Suppliers
In 2010, the Group decided to go a step further by implementing a
process to assess the sustainable development performance of a
limited number of suppliers.
The assessment was conducted on the basis of a scorecard
(Ecovadis) fully aligned with the Global Compact.
This external process is a simple solution and the fi rst step towards
the creation of a database that can be shared with suppliers. This is
an important sign, both internally and with regard to our suppliers.
Suppliers and Sustainable Offers
Implementation of Specifi c Organisations to Trace Conformity
with REACH and RoHS by our Suppliers
The REACH and RoHS regulations have led to the implementation
of transverse retrofi tting projects for the different links of the supply
chain. These projects therefore require a huge effort from our
purchasing department to ensure that our suppliers comply with
these regulations.
To fi nd out more, see the Eco-design section, p. 68.
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 59
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