Enterprise Solutions for Sustainable Supply Chains

Our company has a spend of around EUR 10 bn per year, with around 70 000 suppliers. One of our purchasing specificities is linked to the diversity of our activities and geographies we work with. And therefore brings a degree of complexity when managing purchasing categories and during the implementation of our procurement strategies.

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Back in 2012, one first-tier telecom operator customer requested us to fill in the questionnaire as a supplier and then a second one. We soon saw the benefits of joining the EcoVadis program. It is a very well-known platform for CSR evaluation and other customers were also asking to see our assessment. Plus the fact that we got good results encouraged us to communicate this more widely to our customers.
Sustainability assessments are now part of our management system and are planned at the end of the yearly cycle of activities, programs, training, audits, awareness and reviews. This has also proved very useful for our IPO because the Hong Kong Exchange market is very demanding when it comes to sustainability. We had a number of initiatives in place before but EcoVadis helped us structure them and create value for our customers.

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We at procurement have to help our sales organization with bids to our customers or clients or potential clients. Certainly, we've seen recently that more clients are asking for a sustainability criteria or even an EcoVadis score within the bid package that we're putting back. In the UK, we won a public sector bid. The difference was the fact that we had a CSR score and a sustainability program that we could reference and that they recognized.

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The benefit of working with EcoVadis is their expertise and their support to train our procurement colleagues and helping us to redefined our processes to understand the risks and proactively address them.

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EcoVadis is a good guideline for the suppliers to develop their processes and performance, diminishing the long term supply risk [for Becker's Group]

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For me, as a CSR director, it is very important to have this kind of tool to engage people in the strategy. We send the score to the partners that ask us to be evaluated by EcoVadis, and we also give this score to the other partners who have not asked us to be evaluated. This gives us an external approval, external approach of what we do, and this is something very important.

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We adopted the EcoVadis platform because it was one of the longest established assessment platforms with a good robust approach to assessing and reviewing performance in the sustainability area. Also, we had one of our key clients who was requiring us to complete it as a supplier, and this basically gave us a really good synergy to adopt a program, which not only was satisfying our clients, but which also was helping us internally to drive sustainable thinking and embedding a sustainable approach to business within each of our organizations. The thing that we really like about the EcoVadis platform is a template which each of our businesses can adopt and can use to help them for their own purposes, for their own priorities within their particular country, within their particular market and it gives them their own local ownership.

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In 2012, all the evaluations were conducted in-house and our sustainable development team looked at several companies that could support us. EcoVadis was the most advanced among them and the one we decided to go for. And last year, when it was time to renew our contract, we looked again at what's available in the market and decided to continue with EcoVadis. One of the things we really appreciate is the support we receive from the experts who work with us to help us improve.

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The scorecard feedback is relatively easy to use and understand and includes integrated corrective actions. The format highlights focus areas which is helpful when talking with buyers about a supplier’s performance.

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The key advantages and benefits of the EcoVadis methodology are that it is extremely flexible, so it can adapt to the supplier profile across industries, geographies and sizes. Additionally, it not only provides a score, but it provides a basis for suppliers to drive an improvement program. The suppliers are therefore able to show us and themselves how much they have improved in terms of sustainability performance.

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It was in great interest to us as an organization to have EcoVadis come in and look at exactly what we are doing to give us some opportunities to learn what we can improve upon, as well as what we are doing well and maybe create opportunities to enhance those aspects of our program.

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Sustainability reporting is fully included in Faurecia key performance indicators and monthly reviews. As we assess our suppliers we adjust their key performance indicators to match our sustainability maturity levels.

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EcoVadis has become a strategic tool for us and a way to structure what we do. And also a way to engage our teams. From a business point of view, a lot of our clients who know EcoVadis ask for EcoVadis Rating. It certainly helps create a common ground with our clients as well. I think we are looking forward in the future to do the same with our suppliers and to create this very interesting positive chain, from brands all the way down to farmers or suppliers in our other fields.

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“Gibson Dunn is proud to partner with EcoVadis to conduct a detailed review and action oriented assessment of the Firm’s supply chain. As a thought leader in the area of ESG, Gibson Dunn is rightly held to the high standards our clients expect when managing risks and proactively responding to sustainability concerns. Through our EcoVadis engagement, we are able to work collaboratively with our suppliers to ensure our supply chain appropriately aligns with Gibson Dunn’s values in sustainability.”

Besides the metrics, EcoVadis provides a point of entry for discussion with our suppliers, enabling dialogue about innovation. These can potentially result in joint opportunities, creating a competitive advantage for Henkel or simply securing supply.

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Rewarding sustainability improvement is our aim and the key message in our new sustainability campaign. We encourage clients across all sectors to improve their sustainability performance and we offer them incentives to do so. Companies can benefit from a sustainability rating and now an improved rating can result in lower cost of funding.

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By partnering with our suppliers, we can strengthen the social, environmental and economic performance of our supply chain, reducing our collective footprints and strengthening our companies as well. EcoVadis helps us to map our supplier conformance to J&J Responsibility Standards.

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We have more than 70.000 suppliers, and I'm just talking about tier one. Knowing this very large scope, I need people around me to help me drive my action plans.

New regulations can be helpful because until recently sustainability was something that each LVMH House had to approach on its own. Now, with Sapin II and "Devoir de vigilance" (Duty of Care) regulations, especially in France, the group as a whole is also responsible for what happens at the subsidiary level. This means we need to create more links between what can be done at House level, the business line level, or at the group level. It also strengthens all the synergies we want to create between our subsidiaries. This is a very positive thing for us. The advice I would give about using EcoVadis is that it can help you to make a quick and fairly accurate mapping of the suppliers who are at risk

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We use the EcoVadis assessment as our common standard to educate local teams about global client expectations, discover areas of potential risk, and identify good practices to share across the organization.

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We have found EcoVadis to be extremely efficient and useful to manage most of our service and indirect materials suppliers. Through EcoVadis we are able to get a deep understanding of our suppliers' practices.
Aligned with Nestlé Responsible Sourcing, EcoVadis gives suppliers a unique way to demonstrate their sustainability performance by building on what they already have.
For buying organizations such as Nestlé, the EcoVadis platform is one of the tools we use to avoid duplication and to ensure effective collaboration on responsible sourcing with our strategic suppliers.

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We are first in Italy, and I presume in Europe, in the railway sector, introduced to the EcoVadis rating as awarding criteria in our public tenders. Now, the next step will be the whole group introducing this evaluation as an awarding rating, not only us, but also the train operating companies and the other two main company of the group.

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It starts with the strategy we ask every buyer and every commodity to have. When they have a strategy, every supplier who are part of it must already have a CSR rating. This means that before any call for tenders is launched, CSR is part of it. And then, of course, we keep in mind that when each buyer presents something to the whole group, they want to make a call for tenders, CSR must be in order.

If you look at our vehicles, more than 90% of what they are made of is purchased....This is why we are working in the purchasing department to ensure that all the vehicles on the street are produced in a sustainable way. Here we really have a very big job to do. There’s also something for us in it, it's a pleasure to do that and we really feel empowered to do it to really drive the industry in that. I think this is a natural thing to do.

UPM has a rather large supply base. We have over 25,000 suppliers, and we source a lot of different raw materials. For us, it's crucial to know where the risks are. We need tools that help us decide where to focus our actions.

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We were evaluated EcoVadis for several years due to our customers' request. Three years ago, we took the decision at the executive committee level to choose Ecovadis as the internal reference for our sustainability initiatives. That allowed us to structure our CSR system because the EcoVadis reference framework covers all of the CSR issues and, on the other hand, it also allowed us to align the different subsidiaries with the group's strategy and ensure that the deployment of this strategy was both measurable and aligned with the group's strategies.

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