Sustainable purchasing

Sustainable purchasing

Groupe Renault is committed to a policy of sustainable purchasing
As a key player in the global automotive sector, Groupe Renault works with thousands of companies. Our suppliers are in fact essential partners and contributors to our sustainable procurement policy. 

BUILDING A SUSTAINABLE SUPPLY CHAIN WITH OUR SUPPLIERS

Establishing long-term relationships with suppliers is a triple imperative for Groupe Renault in terms of performance, quality and corporate social responsibility. The Group is committed to developing a constructive dialogue with each of its suppliers, based on trust, respect and transparency, principles that are enshrined in the Alliance Purchasing Way.

chaîne-approvisionnementIn recent years, Renault has been committed to a common approach to progress on respect for human rights, labor law, compliance, safety, quality and the environment.

The document “Renault-Nissan CSR Guidelines for Suppliers” is regularly updated and distributed to all staff of the Procurement Department worldwide, as well as to suppliers. It outlines Renault's social and environmental commitments and formalizes the Group's expectations towards its suppliers. In addition, these guidelines are part of the Global Framework Agreement. This framework thus encourages making continuous improvement throughout the supply and manufacturing chain of our products.

MAKING PROGRESS TOGETHER 

progresser-ensembleIn order to make better progress together, we support our suppliers in four key areas:

  • Working conditions and human rights,
  • Regulatory and ethical compliance,
  • The environment,
  • Sustainable supply chain management.

Regular evaluations of our suppliers are carried out by external organizations. If our partners are not up to expectations, we ask for action plans to be put in place to ensure that they comply with our guiding principles.

Upstream in the supply chain and with regard to minerals, we are constantly strengthening our policy of preventing human rights risks.  These risks are specific to this area and are based on OECD guidelines. All of this is done with one goal in mind: to help build sustainable supply chains. For the first time in 2018, Renault has communicated regarding its cobalt supply chain.

Beyond the supply chain, the Group has also taken a global approach, particularly when designing its products, to reduce the impact of our industry on the environment. For example, by reusing electric batteries, recycling materials or acquiring an interest in Ionic Materials (American company that develops materials for cobalt-free batteries) we are actively participating in reducing this impact.

CORNERSTONES OF OUR SUSTAINABLE PROCUREMENT POLICY

Groupe Renault's sustainable procurement policy is based on principles shared by all stakeholders in the supply chain. Our four pillars are:  

Action plan for 2018

Our concrete actions

1. Suppliers' csr evaluation

Each year, approximately 80% of Groupe Renault's procurement volume is covered by an assessment in the areas of working conditions and human rights, regulatory and ethical compliance, the environment, and sustainable supply chain management. These evaluations are conducted by certified third-party firms.

2. Creation of supplierS mapping

Renault is mapping out its supply chain (rank 1) in order to rank its supplier sites based on CSR risks. An audit plan on high-risk supplier sites is then carried out by outside firms. By the end of 2018, the Procurement Department realized a total of 45 audits.

3. Creation of material mapping

Renault is also mapping out material risks. This enables us to prioritize the actions to be taken, over the medium term, in sensitive supply chains. Actions are undertaken on the basis of OECD principles.

4. Participation in collective initiatives

Groupe Renault also partners with other companies in collective initiatives to increase the impact of its actions. For instance, Renault is a member of the Responsible Material Initiative (RMI) and the Responsible Cobalt Initiatives (RCI).

5. "SUSTAINABLE PROCUREMENT" Award

Each year, Renault presents “Supplier Awards”. These awards recognize particularly high-performing suppliers in five priority areas for Renault, including Sustainable Procurement. In 2018, three suppliers were awarded: HANKOOK TIRE CO LTD; HP; HENKEL.

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