The Group's total purchases amounted to over EUR 6.5 billion in 2015, which makes the Sourcing function a key actor in the Group's CSR strategy. Pursuing a responsible sourcing policy works towards the fulfilment of Societe Generale's commitments in relation to contributing to economic and social development and in relation to limiting its environmental impact.
Since 2006, Societe Generale has been developing its responsible sourcing policy with the implementation of multi-year action plans initially called the Ethical Sourcing Program (ESP), then the Sustainable Sourcing Program (SSP).
With the Sustainable Sourcing Program coming to an end in 2015, a new multi-year Responsible Sourcing policy is presently in the process of being defined, calling on the input of a wide panel of stakeholders (key influencers, purchasers, suppliers – 706 of whom participated in Societe Generale’s responsible sourcing survey). Its operational roll-out will take place, in France and abroad, over the next three years (2016-2018). This plan's goal, among others, is to systematically integrate environmental and social criteria upstream from the sourcing process.
On the other hand, the “Conducting a Responsible Sourcing Policy” instruction has been appended to the Global Agreement on Fundamental Rights signed with UNI Global Union in June 2015, demonstrating the Group’s intention to implement it throughout the Group
CSR evaluation of suppliers, products and services
Every purchasing category is subject to an RSE risk evaluation according to 4 pillars: Environment, Social, Business Ethics, and Suppliers.
All suppliers invited to participate in a bidding process (launched in France) are interviewed by Ecovadis, an independent player recognised for its expertise in sustainable development, and their CSR commitments and actions. Since 2011 a total of 2,687 suppliers have been invited to take part in this evaluation. In 2015, the purchasing scope that the evaluated suppliers represented amounted to EUR 2.5 billion.
Furthermore, at the end of 2015 the Group launched the Know Your Provider (KYP) project, in order to complete the analysis on compliance and conformity.
The principle of E&S evaluations of providers has also been implemented in Germany, Italy, the Czech Republic, Great Britain, Luxembourg and the United States, by means of internal questionnaires.
The Group encourages suppliers in a process of continuous progress by urging those identified as presenting a risk (an Ecovadis rating that is below or equal to 30/100) to implement a remedial action plan. Up until the end of 2014 the suppliers concerned were invited, on a voluntary basis, to define a remedial action plan via the EcoVadis platform. Since the beginning of 2015 a remedial action plan management and monitoring process has been put in place in order to help suppliers to improve their extra-financial performance, with the qualitative objective of obtaining an average rating of 50/100 for all the suppliers that have been evaluated by the Group.
The Sustainable Sourcing Program (SSP 2011-2015) is established through systematic actions carried out in France and impacts buyers, contracts and suppliers.
Supporting the development of SMEs
In 2015, more than 60% of the Group's purchases in France were done through SMEs and mid-cap suppliers. 214 SME suppliers were invited to respond to the supplier survey and EUR 4.9 million in purchases were done through the adapted sector.
Societe Generale is a signatory of the SME Pact since 2007 and of the inter-company mediation charter since 2010. The awarding of the “Responsible Supplier Relations” label shows the implementation of a continuous improvement process and the establishment of a climate of mutual trust with suppliers, especially SMEs.
Committed to an innovative approach and the simplification of its processes, Societe Generale decided to go above and beyond the legal obligation to pay its bills in 60 days and committed to paying its French suppliers in less than 30 days.
Further information on our Sourcing policy