Reducing environmental, social and ethical risks in its supply chain is one of Alstom’s main priorities.
With a wide range of sites worldwide, Alstom favours purchases from local, generally medium-sized companies. Alstom has a highly diverse pool of suppliers. It is therefore necessary to prioritise the assessment of suppliers representing a particularly high risk to the Company. Alstom conducts a CSR risk mapping of its suppliers on an annual basis based on three criteria:
- family of products;
- supplier country;
- volume of purchases by Alstom.
To measure their sustainable development performance, suppliers undergo an assessment based on environmental, social and ethical criteria, including their own requirements passed on their own suppliers. The assessments are conducted by EcoVadis, a company specialising in sustainable development evaluations. The evaluation system relies on United Nations Global Compact, the ISO 26000 standard as well as the Global Reporting Initiative guidelines.
When the evaluation results are not in line with Alstom’s requirements, the suppliers are required to set up and implement an action plan to remedy the identified weaknesses. In the event that a non-compliant supplier declines to put in place corrective actions or to commit to progress, Alstom may decide to terminate the commercial relationship.
As of 31 March 2017, more than 480 suppliers have a valid evaluation which is less than three years old, representing 60% of the Company’s purchasing volume done with these identified “at risk” suppliers.
Railsponsible : an initiative from the rail industry
Officially launched on 4 March 2015, Railsponsible is an initiative on railway sustainable procurement that was founded by Alstom, SNCF, Nederlandse Spoorwegen (NS), DB, Bombardier and Knorr-Bremse.
The Vice President Sourcing of Alstom has chaired the Committee of Railsponsible, during fiscal year 2016/2017.
This initiative aims at improving the sustainable development of the supply chain through a common approach and the sharing of best practices, tools and processes.
Under this framework, the members use the same supplier evaluation platform – EcoVadis – in order to measure their CSR performance. There are plenty of advantages to be derived from this initiative, for both the suppliers and the members. Once the evaluation has been carried out, a supplier may decide, on the request of one of the partner companies, to make his score visible to the rest of the members of the initiative.
Through its access to the supplier evaluations that are not necessarily derived from the risk mapping, Alstom benefits from a better overview of the CSR performance of the supplier and gains time and efficiency in doing so.
Between March 2015 and March 2017, over 550 suppliers have been evaluated and have a valid evaluation via the EcoVadis platform.