Our Sourcing network is a major player in the CSR strategy of the Societe Generale Group, carrying its values and working to ensure that its Environmental and Social commitments are achieved. Initiated as of 2006, the sustainable sourcing policy of the Group materializes through long-term actions plans involving all the stakeholders of the value chain (requestors, buyers and suppliers).
Recognition of our commitments and our approach to responsible sourcing
- 2007: 1st bank to sign the SME Pact
- 2010: the Charter of Responsible Supplier Relations which includes 10 requirements contributing to building a balanced and sustainable relationship between the major signatories and their suppliers. Following the signing, an internal mediator was appointed (i.e. the General Secretary of the Group, contact information below) and a clause promoting the use of mediation was included in our contracts.
- 2012: "Responsible Supplier Relations" label awarded to Societe Generale SA (France) from "Médiation Inter-entreprises", "Médiation des Marchés Publics" and CDAF (Compagnie des Dirigeants et Acheteurs de France). This label certifies, further to an on-site audit of our practices carried out by a rating agency, that our organisation and managing actions give reasonable guarantee of compliance with the objectives and commitments defined in the requirements of the Label.
- 2013: The Group is a founding member of the Charter of Best Practices for procurement of private security services (guarding, cash transportation, remote surveillance), created under the auspices of the Interior Ministry.
- 2014: Signatory of the "La Belle Compétition charter” for tenders with Communication agencies.
- 2015: Considering the results of the annual follow-up evaluation, the Awarding Committee decided to renew the "Responsible Supplier Relations" label for Societe Generale for 3 years. To date, only 37 of the 1600 signatories of the Charter are certified with this label.
- 2016: Societe Generale was awarded the Prompt Payment Prize for corporations during the 3rd edition of the “Prompt Payment Conference and Awards” under the patronage of French President François Hollande, and supported by Emmanuel Macron, the Minister for the Economy, Industry and Digital Sector in June 2016.
A new responsible sourcing actions plan: the 2018 Positive Sourcing Program
For the practices of the Group to remain a reference in sustainable purchasing, a 2016-2018 actions plan was implemented. This fourth actions plan was developed taking into account the feedbacks of over 700 partners and suppliers and is based on the expertise gained by the Group over the past 10 years.
Carrying the values of the Group and in line with the Culture & Conduct programme and with its Environmental and Social commitments, the 2018 Positive Sourcing Program is based on virtuous sourcing practices which must be followed to achieve the objectives set for 2018. It has two goals:
- Improving CSR risk management during the sourcing process;
- Increasing sourcing diversity while contributing to improving the territorial and environmental footprint of the Group.
The operational implementation of the Positive Sourcing Program is in progress in France and internationally. This plan follows the implementation of the internal instruction "Conducting Responsible Sourcing" appended to the Global agreement on fundamental rights signed in June 2015 with UNI Global Union, showing the Group's intent to implement it across all Group entities.
Improving CSR risk management during the sourcing process
Over the years, Societe Generale's practices related to the consideration for environmental and social aspects developed to form a base of virtuous practices. The goal is to strengthen these practices and make them automatic, to mitigate the CSR risks in our sourcing processes:
- Compliance with the Responsible Sourcing charter
Since April 2017, the preferred suppliers of Societe Generale and all suppliers invited to tenders (in France and worldwide), have gradually been informed about the Responsible Sourcing charter. This Responsible Sourcing charter is a joint initiative by French companies of the "Banking & Insurance" sector who want to associate their suppliers in the implementation of due diligence measures in their CSR initiatives (Corporate Social Responsibility).
In line with the Societe Generale Code of conduct, it lays down all the CSR commitments and obligations of the Group, and the expectations towards suppliers in terms of compliance with sustainable development standards.
The mutual commitments laid out in the Responsible Sourcing Charter are based on the fundamental principles of the United Nations Global Compact in the field of human rights, working conditions, the environment and the fight against corruption. The CSR clause included in all contract templates of the Sourcing Division in France includes a reference to the Responsible Sourcing Charter.
- The KYS (Know Your Supplier) plan
During the requests for proposals and throughout the contract term, suppliers are evaluated against international standards and those of the Societe Generale Group through regular checks on three aspects of risk management:
Compliance: checking suppliers' compliance with the international regulations relating to embargoes and sanctions. For French suppliers only, collection and verification of legal documents by a specialising and independent organization,
Operational: assessment of suppliers' financial situation and default risk, via specialized and independent agencies. Checks on the economic dependence with our Group and implementation of actions plans when necessary;
Reputation: assessment of suppliers' reputation through the analysis of public information including key words on environmental and social themes related to the respect of human rights and governance.
In addition, for the most critical suppliers, an assessment of performance in the areas of the environment, social practices, business ethics and subcontracting by an independent third party will be required.
- Introduction of mandatory environmental and social criteria in RFPs
In 2006, the Groupe designed a map of environmental and social risks (E&S) to assess the intrinsic CSR risks of every sourcing category. To mitigate and control the risks when purchasing products or services pertaining to risky categories, the Group includes environmental and social requirements in the requests for proposals. These environmental and social criteria are assigned a minimum 3% weight according to the exposure of the sourcing categories to CSR risks. Tools were developed in 2016 to gradually make these practices systematic in all purchasing processes led by the Corporate Sourcing Division.
- Corrective actions plans in the event of insufficient performances, and on-site audits for risky sourcing categories
The Sourcing Division encourages its suppliers to engage in continuous progress by inciting those identified as risky to implement a corrective actions plan. A process to provide support in the implementation of these corrective actions plans was defined to help suppliers improve their non-financial performance. In addition, since 2015, this process also includes measures for on-site audits which complement the system for our most critical suppliers.
- Improving payment of supplier invoices with the "30-day payment term" system
In 2014, Societe Generale made a drastic choice to become able to pay its suppliers in less than 30 days, by far exceeding the requirements of the regulations. To meet this challenging target, Societe Generale considerably simplified its approval process and implemented innovating solutions like dematerialising invoices, whereby the date of issue of the invoice by the supplier is closer to the date when it is received by accounts payable.
Societe Generale was awarded the Prompt Payment Prize for Corporations during the 3rd edition of the “Prompt Payment Conference and Awards” under the patronage of French President François Hollande, and supported by Emmanuel Macron, the Minister for the Economy, Industry and Digital Sector in June 2016.
- Inclusion of a Sustainable Development clause in the agreements
A CSR clause is included in all the contract templates of the Sourcing Division in France and includes a reference to the Responsible Sourcing Charter.
- Raising the buyers' awareness on CSR issues
A specific "Responsible Sourcing" course is included in the internal training program designed for the newly employed buyers. Awareness sessions on sustainable development are provided to all the buyers on a regular basis.
In addition, all the managers and team members of the Sourcing Division have CSR targets.
Managing risks in our sourcing processes
As part of the 2018 Positive Sourcing Program and in line with the CSR strategy of the Group, three priorities were defined:
PRIORITY 1: CONTRIBUTING TO THE GROWTH OF SMES AND MICRO-ENTERPRISES
SME's are major players in the French economy. Societe Generale intends to facilitate these companies' access to the Group's deals and establishes mutual trust with all its suppliers. The plan is to increase by 20% our 2015 spending with SMEs and Micro enterprises within the end of 2018.
Societe Generale, the first bank to sign the SME Pact in 2007, continues to strengthen its commitment to innovating SME's. Several actions are taken within the Group: including calls for expertise, sponsorship, win-win partnerships and the Supplier Survey. The Supplier Survey is an annual evaluation of the quality of Societe Generale's relations with its SME suppliers.
More than 30% of the Group's purchasing is made every year with French micro-enterprises and SMEs. Thereby facilitating access to the deals of the Group, Societe Generale contributes to developing the regional economy, within a framework of mutual trust with all its suppliers.
PRIORITY 2: ESTABLISHING OURSELVES AS THE LEADING PARTNER OF THE SOCIAL ECONOMY SECTOR
The plan is to double our 2015 spending with suppliers from the social economy sector within the end of 2018.
Close collaboration between the Mission Handicap unit of the Group and the Sourcing Division ensures that, whenever it is possible, the supported employment sector is included in the supplier sourcing process. In addition to the increased involvement with the sheltered sector, the Positive Sourcing Program extends the scope of action to partnerships with "social integration" companies and other players of the Social Economy Sector.
For example, a project was initiated to increase the use of social businesses to provide us with IT services. The goal of this initiative is twofold: to support the social business in professionalizing its IT network, and to increase the use of these suppliers in strategic activities for the bank in relation to the digital transition which represents a significant spending volume for Societe Generale. The project should enable Societe Generale to maintain, or even increase, its expenditure with the supported employment sector.
PRIORITY 3: CONTRIBUTING TO THE CORPORATE CLIMATE TARGET SET FOR 2020
The Group is engaged in the energy transition and circular economy with the goal of reducing by 20% its emissions of CO2 per occupant within 2020, in relation to 2014, making the fight against climate change a major focus of its environmental policy. For Societe Generale itself, it materializes in the development of Green IT, the improvement of the energy performance of buildings and the improvement of the environmental performances of all the products and services purchased by the Group.
The goal, through sourcing, is to always look for innovating products and services with environmental added value based on a documented analysis of the environmental impacts (CO2 emissions and environmental efficiency).
This new actions plan is part of an ongoing progress approach.
Our suppliers testify:
“The acceleration of the growth of Eva Group was allowed thanks to Societe Generale, already in Asia and Hong Kong then in France, over three years ago now.
Right now, we all need to constantly adjust the value offering, combining acute technical expertise and advisory in the fields of cyber security, network infrastructures and software development, to best help our international clients in their digital revolution.
For a SME like EVA group to grow you need a sustainable partnership with Societe Generale but also a joint CSR approach where values are shared, such as professionalism, attention to customers and employees, commitment, integrity and a vision that promotes entrepreneurial spirit combining human resources, an agile organisation and innovating technologies.
In the future, we will grow together, take up challenges whether in our good or bad times, all the while ensuring profitable growth, consistent with our common values. Our subsidiaries, BSSI in cyber security, Siclo in software development in Vietnam and the creation of an entity in Dakar, Senegal should enable us to achieve this goal.”
Robert TRAN VAN LIEU, Associate Director, Eva Group, April 2017
“As a leader of work environment solutions, Lyreco implemented a CSR strategy that is based on the intent to be a company where sustainability is an everyday concern, at all levels, for all decisions.
Societe Generale, a key client of Lyreco, regularly contacts us for the implementation of new projects; their CSR requirements enrich our respective approaches and ensure continuous progress for our two businesses in this area.
That is how in 2016, good environmental performances were achieved: virtually all papers ordered from Lyreco are recycled, more than two of three writing products are "green" pens and 35% of IT cartridges ordered are remanufactured cartridges.
It is the result of a joint effort in perpetual evolution.”
Daniel LEONI, Head of Quality, Safety, Sustainable Development, Lyreco, April 2017
In the event of a dispute, you can contact the internal Mediator free of charge
at the following address:
Médiateur interne des relations Inter-Entreprises
Tours Société Générale
75886 Paris Cedex 18