Evaluation of supplier CSR risk

Objectives
  • to heighten supplier awareness of the importance of CSR and encourage them to establish and maintain good practices linked to the environment and social and human rights,
  • to initiate, where appropriate, joint measures to improve CSR,
  • to factor in CSR criteria when selecting suppliers.
Measures
The aim of the methodology behind CSR evaluations which was formally introduced by Societe Generale in 2006 was to integrate the broadest possible spectrum of expenses in the evaluation of CSR.
The department e-Sourcing tool, "Tool@chats", is used to process files on line. Evaluations are based on a questionnaire of ten standard questions used to assess a supplier's CSR commitments, either at the time a product or service is purchased or when they are rated, and the tool's database is updated as and when CSR evaluations are validated by the purchasers.
When an invitation-to-tender is sent out, the purchaser is able to consult the existing CSR rating of a candidate in the database. If a supplier has not yet been rated, a questionnaire is sent at the same time as the invitation-to-tender.
Once the evaluation is complete, the supplier's CSR rating is factored into the selection criteria (at least 3%).
Highlights in 2010
  • Over 900 suppliers listed in the database,
  • Supplier expenditure accounted for over € 3 billion,
  • 75% of suppliers had a rating of 5/10 or above.