2013

Alstom Sustainable Sourcing

Process, expectations and added benefits for suppliers

Alstom, a world leader in transport infrastructure, power generation and transmission

Thermal & Renewable Power Equipment & services for power

generation

Transport Equipment & services

for rail transport

Grid Equipment & services

for power transmission

• 4 sectors

Sales 2012/13: €20,3 billion

• 93 000 employees • 100 countries

Alstom, a group committed to sustainable development

• Sustainable development has been defined as a “development that meet the needs of current generations without compromising the ability of future generations to meet their own needs” (Brundtland Report, 1987)

• Alstom publicly commits to contribute through its adhesion to UN Global Compact in 2008 and to World Business Council for Sustainable Development (WBCSD) in 2009 and specific initiatives linked to its activities

• Alstom’s way to Corporate Social Responsibility is defined in 9 priorities :

Its technology solutions : Green offer and Ecodesign

Its stakeholders : Customers needs, sustainable sourcing program, local communities

Its operations : Safety, ethics, people, environmental footprint

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What is sustainable sourcing for Alstom?

As part of its sustainable sourcing strategy, Alstom aims at developing partnerships with suppliers capable to commit to sustainable

development by setting up objectives and measurement regarding:

Environment: care about the environment through practices and offers

Social: respect international conventions (Human Rights and working conditions) and be proactive

Ethics: practice fair business

Supply chain: apply those requirements to own suppliers

Alstom’s sustainable development sourcing process

1. Charter and/or contractual clause

3. Suppliers Improvement

2. Evaluation of suppliers social responsibility

Charter

Evaluation

Improvement

1. Charter for sustainable development

Sign the charter implies the company’s compliance with ILO (International Labour Organisation) and other international conventions, in particular with:

− Labour standards

− Ethics

− Environmental protection

− Occupational health and safety

All Alstom suppliers have to adhere to the Charter

2. Assessments and audits of Alstom suppliers’ performance on sustainable development

− Assessments:

• All main suppliers and suppliers in high CSR risk category will be assessed

• To offer a mutualized solution to suppliers which allows them to share their result with several clients, assessments are outsourced to EcoVadis

• EcoVadis assess sustainable development performance via an on-line questionnaire and the analysis of the supporting documentation provided

• We aim to have all suppliers with a sustainable development rating around 60/100

− Audits: • Questions on SD have been integrated to qualification audit checklist

• Possibility of external audit on sustainable development issues

Suppliers having signed the charter accept to be evaluated on sustainable development criteria

EcoVadis Assessment Process

EcoVadis analyses Management System’s quality regarding 21 CSR criteria on 4 themes

Ecovadis scores theme depending on 7 management indicators at 3 different level

REPORTING/KPI 360°

Quality and level

of reporting

readily available

to stakeholders

Controversies, condemnations or

positive developments reported by

stakeholders representatives (i. e.

NGO's, Trade Unions, Press) that are

considered having impact on company's

CSR performance

RESULTS (40%)

MEASURES/ACTIONS COVERAGE CERTIFICATIONS

Measures and concrete

actions put in place to support

engagements, principles,

objectives and dissemination

of policies (e.g. training,

manual procedure, equipment

to reduce pollution)

Estimate on the level of

deployment/ dissemination

of measures and concrete

actions put in place

throughout the

organisation to support

policies

Quality of certifications

received (or in

preparation) for the

management system

and/or labels received

for the products/services

delivered

ACTIONS (35%)

MISSION STATEMENT / POLICY ENDORSEMENT OF EXTERNAL CSR INITIATIVES

Mission, value statements and/or

engagements and/or principles and/or

objectives and/or policies issued by the

company

Endorsement of External CSR Initiatives and/or

principles and/or active participation to

international/sector CSR initiative (e.g. UN Global

Compact, Electronic Industry Citizenship Coalition)

POLICY (25%)

EcoVadis Assessment: definition of basic to exceptional policies

EcoVadis Assessment: advises for a good scoring

The person answering the questionnaire should be the one in charge of Sustainable Development or Environment Health and Safety. It might be necessary to open access to the questionnaire to several persons (HR, Quality, EHS, Ethics…)

Provide a maximum of supporting documentation reflecting the company’s commitment to sustainable development to increase the probability to obtain a good score All formats (PDF, word, PowerPoint, Excel, JPG…) and all type (meeting’ minutes; certificats; training support presentation; print screen of intra/inter-net; photos of billsticking of internal procedures; mails; bills; ….) are accepted!!

If you think there is no document, ask internally how your company manage to deploy its policies and detail your answers

Advantages of Ecovadis for supplier

One unique interface to

3. Improvement action plans requested for non-compliant suppliers

Suppliers that do not answer to an evaluation or obtain a score too low are considered as non-compliant

− They will have to implement action plans in order to continue their relationship with Alstom

− Our sourcing manager (with the potential support of SQD) provide them support to improve their sustainable development level

Alstom’s sustainable development sourcing process

Our purchasers and auditors are trained in order to support you

1. Charter and/or contractual clause

3. Suppliers Improvement

2. Evaluation of suppliers social responsibility

Charter

Evaluation

Improvement

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