35 2024 DECLARATION OF NON-FINANCIAL PERFORMANCE _ DESCOURS & CABAUD At the end of this pre-qualification visit, a level of requirement is estimated and assigned to each supplier on a scale of 1 to 3, incorporating various criteria such as business volume, the industrial sector concerned or the country of production. Each level of requirement triggers its own specific controls. The supplier qualification policy therefore provides for several types of audits and controls to be carried out and followed up when business relationships are established. All the tools deployed in this respect are based on a site-by-site approach, as close as possible to the production plants, and pave the way for corrective action plans when the situation requires the support of a supplier. The rollout and renewal of audits, in line with the frequency defined by the policy, are continuing in 2025, with the aim of guiding strategic purchasing policy decisions by assigning compliance scores with the pillars of CSR, quality and reliability in business. In parallel, several initiatives were launched at the end of 2024 to update the supplier qualification policy and incorporate additional environmental and social criteria, as well as to create new reference standards where they enable a significant increase in requirements. KEY INDICATOR For 2024, the indicator covers the main suppliers based in Asia and with requirement levels 2 & 3 assigned according to DC GLOBAL SOURCING ASIA's own grid. The requirement levels vary from 1 to 3 according to the Group's level of engagement with respect to a supplier, including the volume of business done, but also taking into account the location, as well as the level of CSR maturity. Levels 2 and 3 represent the highest levels of engagement and risk for the Group. For this supplier segment, the target is to carry out a 100% evaluation of each production site involved in a business relationship monitored by DC GLOBAL SOURCING ASIA. In 2024, achievement of this target stood at 98.9%, with the shortfall due to the integration of a new production site belonging to an approved supplier that had already been audited at its other locations. % of Asian suppliers assessed (requirement level 2 and 3) Target 100% 0% 10% 20% 30% 40% 50% 60% 80% 70% 90% 100% 2022 2023 2024 92.5% 96% 98.9% QUALIFICATION OF ASIAN SUPPLIERS IN TERMS OF CSR MATURITY Identification of a potential supplier Requirement level 1 Prequalification visit by the DC GLOBAL SOURCING team Requirement level 2 DCA audit by the DC GLOBAL SOURCING team Requirement level 3 EcoVadis questionnaire + on-site HSE audit or Third-party CSR audit Pre-approval visit Supplier approved Assign a CSR control requirement level based on the: • Supplier's criticality level • DESCOURS & CABAUD Group's potential commitment to the business volume Supplier not approved Supplier not qualified Supplier qualified for the business relationship • Follow-up of action plans • Renewal audit every 1 to 3 years
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