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Sustainable procurement

Procurement, sustainable by design

 

The mission of Procurement is to contribute to ENGIE’s ambition to be the world leader in the transition to zero-carbon. Procurement, sustainable by design! Understanding and quantifying what really matters in the value chain is a key component of the Group’s strategy.

 

With an addressable spend of 21,1 billion euros in 2020*, of which 75% in Europe, ENGIE develops and maintains sustainable performance with around 140,000 active suppliers. Ability to catch suppliers’ best products, services and innovations is essential to act as an assembler of solutions and technologies aimed at delivering zero-carbon transition to end customers.

 

Procurement function manages supplier relations within a system of governance seeking to:

 

  • contribute significantly to the Group’s operational performance,
  • define a model in terms of the creation of synergies in the Group,
  • be an ambassador for suppliers with respect to the Group’s commitments on Health and Safety and on Environmental and Social Responsibility.

 

Our main commitments and requirements are defined in the Group's procurement policy

(*except energy)

Our ambition: Engaging with suppliers for a sustainable Business

 

Intrinsically procurement function, suppliers and subcontractors are essential stakeholders in the Group value chain.

 

The ENGIE Group Procurement Department has set the goal of implementing by 2030 CSR initiative covering procurement chain management in all entities controlled by the Group. In 2020, the Group Procurement Department set three CSR goals, which are rolled out throughout its management system:

 

  • Decarbonization of the main suppliers
  • CSR assessment of suppliers
  • Share of inclusive purchasing

 

Going forward: a new partnership with a CSR specialist to monitor ENGIE’s suppliers panel

 

ENGIE has partnered with EcoVadis to evaluate its Preferred Suppliers in order to monitor and measure the social and environmental performance of its supply chain.

 

By choosing Ecovadis, ENGIE uses its CSR expertise, online tools which will save time and resources for suppliers on CSR assessments and reporting thanks to:

  • Confidential and efficient CSR questionnaire and expert analysis
  • A CSR Scorecard which can be shared with their other clients as well
  • Tools for benchmarking and improving CSR practices

 

ENGIE sets targets for preferential & major suppliers, in particular on the onboarding rate and their assessment above a score of 45/100 “managed CSR risk” level.

 

EcoVadis has developed a methodology for assessing company CSR engagement against 21 CSR criteria covering Environment, Labor & Human rights, Ethics, Sustainable Procurement.

 

The Procurement approach in the Vigilance Plan

 

The Procurement approach is an integral part of ENGIE's Vigilance Plan. All the elements related to:

 

  • Procurement risk mapping
  • Supplier evaluation,
  • The Group's Procurement Policy and procurement risk management
  • The process implementation monitoring
  • The report on the deployment of the process are set out in the document below entitled "Responsible Purchasing: CSR Key Performance Indicators"