SUPPORT SUPPLIERS IN

THEIR DECARBONIZATION TRAJECTORY

ENGIE has set up, with its suppliers, a proactive policy aimed at assisting them in reducing their carbon

footprint. This partnership approach is in line with the Group’s ambition to become a Net Zero Carbon

company by 2045.

DECARBONIZE THE VALUE CHAIN

To achieve the Group’s decarbonization

goals by 2030, the Procurement

department is mobilizing its suppliers,

who are essential stakeholders in

the Group’s value chain. ENGIE has set

a goal to have 100% of its 250 Top

Preferential Suppliers (excluding energy

suppliers) certified or aligned with

Science-Based Targets by 2030.

For this reason, the Group expanded

its approach to assist in the

decarbonization of all its preferential

suppliers (618) and major suppliers (945),

who represent 38% of the non-energy

purchasing volume. In 2022, ENGIE

prepared an inventory of the “carbon

maturity” of its 400 largest suppliers.

On November 24, 2022, during its

first Supplier Day, ENGIE brought

400 suppliers together with the Group’s

Chief Executive Officer Catherine

MacGregor. There were many questions

about sustainability in general,

and decarbonization in particular,

as elements in the purchasing road

map, but also about securing supply

chains and the need for its relocation,

innovation, digitization and health

and safety.

REDUCE RISKS THROUGH A PLAN

TO SECURE SUPPLIERS

ENGIE also decided to modify its

portfolio of suppliers to reduce its

sourcing risk One of the solutions to

reduce risks secure purchases and

control supply chain challenges includes

the relocation of the value chains

In the same spirit ENGIE decided to

support two major sector initiatives

the European Solar Initiative aimed at

developing the industrial solar power

ecosystem in Europe by 2025 as well

as the Wind Europe association that

promotes the development of wind

power on the European continent

STRENGTHEN VIGILANCE

The Procurement segment contributes

to a reduction of the risks within

the supply chain through rigorous

management of its suppliers.

These suppliers must, therefore, apply

ENGIE’s ethics and CSR requirements,

i.e. respect the right to work and human

rights, offer equitable and decent

compensation, and provide a safe

working environment.

The Group decided to reinforce its

Due Diligence policy on its solar supply

chain in order to identify suppliers

that may be involved in human rights

violations. In China, an action plan was

deployed in the Group’s supply chains

with new contract clauses aimed at

fighting the forced labor of the Uyghurs.

A search was also launched to find

alternatives in all areas where ENGIE

is exposed. In addition, the traceability

of supplies, already implemented

in the United States to comply with

the requirements of the Uyghur

Forced Labor Prevention Act (UFLPA)

,

will soon be applied to at-risk

purchasing categories worldwide in

order to select responsible suppliers.

DEVELOP INCLUSIVE PURCHASING

AND WORK FOR THE JUST TRANSITION

Purchasing also participates in the Just

Transition. In this regard, particular

attention is paid to inclusive or solidarity

purchases.

In line with the commitments made by

the GT3 working group of the

Collectif

d’entreprises pour une économie

plus inclusive,

Purchasing has set up

mechanisms to facilitate “inclusive”

purchases, which are monitored by one

of the Group’s non-financial indicators.

In 2022, the Group defined an Inclusive

Purchasing Policy in France directed at

suppliers who hire and provide lasting

income to people with disabilities

or long-term unemployed workers.

This policy will be adapted in other

countries in 2023 in accordance with

local regulations and culture.

To learn more, see the Just Transition

Notebook.

At Carrier we are committed to supporting Engie

in its strategy to decarbonize and provide innovative

HVAC Heating Ventilation Air Conditioning

and control solutions to make a difference in

the market and for the planet

Didier Genois

Vice President and Managing

Director CARRIER HVAC

Europe Carrier

2023 INTEGRATED REPORT - 45

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