For Groupe Renault, there are three reasons why establishing long-term relationships with suppliers is vitally important: efficiency, quality and corporate responsibility. For this reason, the role of extra-financial selection criteria (environmental, social and governance) in the supplier selection process increases year on year.
The Group strives to develop channels of communication with its suppliers that are constructive and built on trust, respect and transparency; principles enshrined in the “Alliance Purchasing Way”.
In recent years, Groupe Renault has implemented voluntary policies in areas such as human rights, labour law, compliance, safety, quality and the environment.
In this way, in partnership with our suppliers, we are committing ourselves to a philosophy of shared progress. The “Renault-Nissan Guidelines for Supplier CSR” are distributed to all Purchasing Department staff worldwide, as well as suppliers. They are a reminder of Groupe Renault’s social and environmental commitments, and a formal statement of the expectations the Group has for its suppliers.
These guidelines are also accompanied by the “Global Framework Agreement”.
This framework supports the implementation of continuous improvement initiatives throughout the procurement and manufacturing chain for our products.
1 - Human rights and working conditions
2 - Regulatory and ethical compliance
3 - The environment
4 - The implementation throughout the entire supply chain
Regular assessments are conducted by external bodies. Where our partners have not achieved the expected level, we require them to implement action plans to ensure that they adhere to our guiding principles.
Upstream of the supply chain, with reference to raw minerals, we are making daily changes to our risk prevention policy in respect of basic social rights. These risks are specific to this domain, and are based on OECD guidelines. This is all informed by a single goal: to play a part in building responsible supply chains. Every year since 2018, in the interests of transparency, Renault has been sharing/revealing its cobalt supply chain.
a. SUPPLIER RISKS
Groupe Renault maps its supply chain (row 1) to enable it to rank its supplier sites in order of extra-financial risk. A programme whereby external firms audit high-risk supplier sites is then implemented.
b. MATERIAL RISKS
Groupe Renault produces a map of material risks based on CSR criteria. This makes it possible to prioritise medium-term actions to be undertaken for sensitive supply chains. Actions are taken in compliance with OECD Due Diligence Guidance for Responsible Supply Chains for minerals from conflict-affected and high-risk areas: Third edition.
Every year, more than 80% of Groupe Renault’s purchase demands are covered by an extra-financial assessment in the domains of working conditions and basic social rights, regulatory and ethical compliance, environment and responsible supply chain management.
An initial level of assessment is carried out at group level. Next, depending on the results, a second level of assessment is carried out at potentially high-risk supplier sites by certified external audit firms.
Following the on-site audits, particular attention is paid to following up corrective action plans implemented by the lowest-ranking suppliers, with mandatory re-auditing required.
Groupe Renault also joins forces with other companies to undertake collective initiatives to increase the impact of the actions undertaken. For example, Renault is a member of the “Responsible Minerals Initiative” (RMI, USA) and an active participant in working groups on Cobalt and Mica. In addition, Groupe Renault is a member of the Child Labor Initiative (CLP) of the ILO (International Labor Organization of the United Nations).
Since 2018, Groupe Renault has been conducting audits on certain suppliers, using independent external audit firms. These audits cover basic social rights, working conditions, the environment, business practices, etc., and their aim is to assess risks and prevent any serious breaches in these areas throughout its supply chain.
At all of the 82 supplier sites audited since 2018, top priority in the assessment was given to basic social rights and working conditions.
Nearly 50% of identified non-conformities related to working conditions,
others were environmental issues (32%),
basic social rights (13%) and business practices (5%).
Starting in 2019, Groupe Renault has implemented a system for tracking corrective action plans being followed by the lowest-ranking suppliers, with mandatory re-auditing required.
As a result of its commitment to basic social rights, and in particular to the fight against child labour in its minerals and materials supply chains from high-risk countries, Groupe Renault has since 2017 been focusing its efforts on cobalt – a mineral used in electric batteries.
An audit firm specialising in this sector was mandated to conduct comprehensive mapping of its supply chain and also on-site audits of identified actors. So far, 17 audits have been conducted at each level of the supply chain, leading back as far as a number of small-scale mines in the Democratic Republic of Congo (DRC). No critical non-conformities have yet been identified, and tracking of corrective action plans is underway.
Groupe Renault has been holding an annual awards programme since 2017. These awards recognise particularly high-performing suppliers in five priority areas for Renault, including Responsible Purchasing. In 2019, prizes went to two suppliers: APEX JSC (Russia) and ERMETAL OTOMOTIV (Turkey) for their excellent extra-financial performance