Reducing environmental, social and ethical risks in its supply chain is one of Alstom’s main priorities.
With 105 sites distributed over 60 countries, Alstom is both a local and global actor. This geographical proximity fosters long-term partnerships with customers and suppliers while increasing Alstom’s industrial agility. The Company works with a panel of over 15 000 suppliers worldwide covering rolling stock, signalling, digital mobility solutions, infrastructure, maintenance and modernisation activities, and representing a yearly purchasing volume of 6.1 billion Euros. This worldwide supplier base located for 56% in Europe and for 44% in the rest of the world is aligned with Alstom footprint and business.As a consequence, in order to deliver continuous operational excellence it is necessary to assess in priority the suppliers which represent a particularly high level of environmental, social and ethics risks to Alstom.
As a consequence, in order to deliver continuous operational excellence it is necessary to assess in priority the suppliers which represent a particularly high level of environmental, social and ethics risks to Alstom.
- 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 2018, more than 510 suppliers have a valid evaluation which is less than three years old, representing 65% of the Company’s purchasing volume done with these identified “at risk” suppliers. By 2020, Alstom aims at having 80% of the spend done with "at risk" suppliers to be covered by an assessment.
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 2018, over 850 suppliers have been evaluated and have a valid evaluation via the EcoVadis platform.