DNFP 2019

2019 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 28 > The means of control: The plan includes a number of measures, which are taken by ourselves or are outsourced. These measures more particularly include: • a team of 18 based in Shanghai for nearly 15 years is tasked not just with supplier sourcing but also with carrying out product quality controls, meeting specifications and participating in the oversight of CSR criteria. The framework agreements we have with suppliers include specific clauses relating to their obligations • quality audits carried out in manufacturers’ factories • in 2019, CSR risk mapping by an independent body (ECOVADIS) aimed at identifying, analysing and ranking the risks. This mapping is done by category of purchase and by country to determine a degree of exposure of each supplier, due to its geographical location and its business sector It involved purchases made with 234 suppliers carrying out different activities (18 categories according to the ISIC international classification) and established in 28 countries. The results of this mapping revealed variable levels of CSR risk. It will require us to change our purchase process, both with regard to current and new suppliers. This process is carried out in parallel with a campaign for the CSR assessment of our main suppliers, spread over 3 years and initiated at the beginning of 2019: • regular assessments of the situation of suppliers and subcontractors with whom we have an established business relationship, with respect to the risk mapping • DESCOURS &CABAUD's team in Shanghai sends each supplier an "SQS" questionnaire (supplier qualification sheet), which is updated at least every 3 years. It deals with questions relating to suppliers' offerings of responsible products, the inclusion of CSR criteria in the product life cycle and transport and packaging • works visits conducted for assessment on site review some of the points raised in the SQS and are the subject of a report > Key performance indicator: The indicator covers the main suppliers (purchase turnover of more than $100k). They are assessed through audits performed by our local teams using an assessment chart. The aim is to achieve a 100% assessment on these suppliers. % of suppliers assessed (purchase volume > $100k) 95% Target: 100%