Following the ISO 20400 recommendations on responsible purchasing, Legrand has integrated social responsibility into its purchasing process: a purchasing decision is not made based on pricing criteria alone, but also quality, environmental, corporate and social criteria. Legrand even goes the extra mile by taking into account the "life cycle cost". This change to the position of the buyer requires staff awareness and training, throughout the world.
In accordance with ISO 20400 recommendations concerning responsible purchasing, Legrand continues to incorporate social responsibility into its purchasing processes, particularly by taking the life cycle cost into account. This involves an awareness and training campaign for all employees involved in the purchasing approach, all over the world.
According to the principle that the ethical, environmental, and societal rules enforced by Legrand also apply to its suppliers and subcontractors, Legrand expects the latter to uphold the same standards of social responsibility. The Group supports suppliers identified as at-risk in CSR terms, as part of a continuous improvement process, by deploying an in-depth vigilance plan.
OUR RESPONSIBILITY IS TO RAISE AWARENESS AND PROVIDE TRAINING, WHILE TAKING INTO ACCOUNT THE " life cycle cost"
Goals for 2021
- Train 1,000 employees in the purchasing and decision-making process
- Implement a “life cycle cost” approach on 100% of the purchases concerned
OUR RESPONSIBILITY IS IDENTIFYING AND ASSISTING SUPPLIERS WITH CSR RISK EXPOSURE
The responsible purchasing approach is based on the principle that the ethical, environmental, and societal rules applied by Legrand also apply to its suppliers and subcontractors. Legrand expects suppliers to uphold the same standards of social responsibility, particularly the Global Compact. The Group supports them through a continuous process to improve their environmental, corporate and social performance. Suppliers who are at-risk in terms of CSR are particularly targeted, and are subject to a specific identification procedure and monitoring.
More than 60% of the Group panel's purchases are with suppliers who share the principles of the Global Compact.
450 document audits carried out since 2019 with suppliers with CSR risk exposure
Goal for 2021
Improve the situation for 100% of suppliers identified as at-risk in CSR terms
3 questions for Karine Alquier-Caro, Executive VP Purchasing
How is the buyer's job changing?
Today, the buyer is expected to play a leading role in creating value, not only for the company but for the internal-external ecosystem: to understand Legrand's challenges and how to respond to them, to innovate in partnership with suppliers, to support them to advance the whole ecosystem with regard to these challenges, etc. CSR is a strategic issue for Legrand. The buyer has both a duty of care concerning the activities of its suppliers and a medium/long-term vision regarding the choice of suppliers.
What does Legrand mean by a risky supplier in terms of CSR?
This is a supplier whose activity may pose an environmental risk or a risk to health and safety at work for its employees. Under French law, Legrand is liable for any breaches committed by a supplier of a Group subsidiary abroad. This can include human rights, health and safety at work or environmental protection. European regulations are also likely to evolve in this manner. The methodology deployed by Legrand also takes into account risk factors related to the country where the supplier is located and the level of the supplier's dependency on Legrand. Risky suppliers in terms of CSR are subject to special monitoring governed by the Group's CSR roadmap. The priority consists of identifying these suppliers and supporting them with a continuous environmental, social and corporate performance improvement process.
Why integrate the life cycle cost concept?
To take into account CSR aspects in cost analyses and bid comparisons. For example, the best working conditions, commitments to reduce CO2 or commitments to the circular economy will be valued when analysing supplier offers. This type of analysis is recommended by ISO 20400. This process is also part of its purchasing Quality Management System