DNFP 2020

2020 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 37 The means of control: Being aware that the law does not define the relevant frames of reference and applicable standards, the due diligence plan retained by DESCOURS & CABAUD is designed to target effectiveness and includes various measures that are carried out either by ourselves or by subcontractors. These measures are described below: 1. A team of 20 people, established in Shanghai for over 15 years, is responsible for implementing and maintaining a reactive policy of qualification of suppliers that applies to the whole of Asia. This policy is implemented through on-site audits conducted by a dedicated team of inspectors/auditors and by third parties. As part of this mission of qualification, new audit models will be rolled out during 2021 so as to further reinforce due diligence concerning SCR criteria. This team now includes a manager who is specifically responsible for coordinating and managing Quality Control. The general purchasing conditions (updated in 2020) that apply to our relationship with these suppliers include specific clauses concerning their obligations in terms of CSR criteria. In addition, a Suppliers’ CSR Code of Conduct has been introduced with the Group’s Asian suppliers, relating to respect for Human Rights, ethical business practices (primarily the fight against bribery), and reduction of the environmental impact of their activities. During the course of 2020, employees based in the Shanghai office participated in training sessions to raise their awareness of the need to prevent the risk of bribery. 2. Quality audits carried out at the manufacturers’ factories. 3. The carrying out in 2019, by an independent organism (ECOVADIS), of a map of CSR risks used to identify them, to analyse them and to place them in order by degree of importance. This ordering is conducted by category of purchase and by country, and is used to determine the degree of exposure of each supplier, in terms of its geographical location and sector of activity. It made it possible to audit the purchases made from 234 suppliers exercising different activities (with 18 different categories in accordance with the international ISIC classification) and established in 28 countries. The results of this mapping have revealed variable levels of CSR risk, leading us to improve our purchasing process, both for our current suppliers and for the new ones. This approach is conducted in parallel through a CSR assessment campaign on the part of our main suppliers, divided over 3 years and starting in early 2019. 4. Regular assessments of the situation of suppliers and subcontractors with whom we have an established business relationship, with respect to the risk mapping. 5. Factory visits conducted for an on-site evaluation, reviewing some of the points raised in the Supplier Qualification Sheet (SQS) and which are the subject of a report. Key performance indicator: The indicator concerns the main suppliers (with purchases totalling over 100,000 US dollars). Their evaluation is conducted through audits by our local teams by means of an evaluation grid. The aim is to conduct 100% of all evaluations through this panel of suppliers. % of suppliers evaluated (volume of purchases > 100,000 US dollars) 50% 60% 70% 80% 90% 100% 110% 2019 2020 97% 95% Target 100%