Purchasing policy, reflecting a responsible company
In 2015, Eiffage centralised the purchasing departments of the Construction, Energy and Infrastructures divisions into a single operational department attached to head office.
his new organisation has several goals :
- select suppliers based on objective criteria, in particular for their ability to provide relevant and innovative solutions to the group,
- strengthen management of the purchasing policy by professionalising the function and developing expertise by purchasing family,
- continue to integrate sustainable development criteria by forming long-term partnerships and regularly checking suppliers' CSR practices.
The APRR purchasing function was also revamped in 2015 with the creation of the Purchasing and Organisation department within the finance department, which also seeks to boost competitiveness and streamlined processes.
The purchasing code of conduct – co-written in 2009 by group purchasing, the general commission on risks and controls and the sustainable development department – highlights specific aspects of the purchasing function's practices. The code sets out behavioural rules and ethical standards, as well as Eiffage’s expectations of its suppliers and subcontractors.
Incorporating sustainable development criteria
Relations with suppliers
Over the past four years, Eiffage has been conducting a CSR assessment of its suppliers using the ACESIA platform, one of the sector’s reference tools. This audit was relaunched in 2015 for strategic suppliers.
The responsible purchasing policy developed in collaboration with the group's environment managers is applied to product categories such as office supplies, telephony, waste, site accommodation and work clothes. Furthermore, in a difficult economic context, the purchasing network strengthened its relations with stakeholders. The redistribution of value to stakeholders is a key element of Eiffage’s CSR strategy, with suppliers and subcontractors being mainly concerned. The purchasing network’s basic mission to develop balanced relationships with its suppliers and subcontractors continued, with the main aims being to strengthen contractual relations by developing an improvement plan and multi-year commitments, defining and monitoring economic, social and environmental performance indicators, and implementing innovative initiatives. For each purchasing category, a preferred supplier list is used to ensure an appropriate level of monitoring.
The Group purchasing department is committed to a goal of 50% coverage of suppliers under framework contracts by 2017 (compared with 35% in 2014), in particular via deployment of its new Group strategy.
The Purchasing department, Eiﬀage Construction and the Sustainable Development department worked together on a library of products with remarkable environmental and health-related characteristics – such as organically sourced materials with low embodied energy – and a visual illustrating the performance of each one. The inclusion of organically sourced products in the division's purchasing catalogue was centred on insulating, floor coverings and paints, and items related to the Smartseille ecodistrict project in Bouches-du-Rhône.
A responsible approach
As regards waste management service, environmental audits are carried out once a year at Eiﬀage Construction to assess the performance of service providers working under framework contracts. In the event of non-conformance, verbal and then written instructions may be given to the relevant service provider. The criteria implemented in audits are related to regulations (sourcing, brokerage, etc.) and the environment (degree of recycling, waste sorting efficiency and site cleanliness, etc.) as well as quality of services (reporting, compliance with deadlines, etc.).
A new supplier qualification system was studied in 2015. This system will be used to assess suppliers with respect to a number of criteria, including CSR, and to allocate performance ratings.
Carbon emissions commitment
Reducing carbon emissions from employee travel remains a key facet of the greenhouse gas emissions plans developed by the Group’s divisions.
Average carbon emissions for cars fell to 98 gCO2/km in 2015 and, at the end of 2014, the fleet included 65 hybrid vehicles and 48 electric vehicles.
The principle of responsible purchases is targeted by awareness-raising campaigns and training among APRR and AREA purchasing staff. As soon as purchase requirements are established, buyers identify services – especially those involving labour-intensive tasks – which may be supplied by the disability-friendly, sheltered workshop sector. They then call for bids which are assessed on the basis of various criteria including those specified in company disability policy. The two companies are looking to develop partnerships in the long term, as illustrated by a new contract signed with ESAT Hors-Murs in 2015 for the supply of an employee for AREA.
Eiffage Construction has established ongoing relations with 45 partners from the supported and sheltered sector: the group's local entities outsource a portion of green space maintenance, building renovation and cleaning services to them. The division is continuing work on the referencing of quality structures with the twofold aim of doubling the number of units that benefit and increasing the value added of services provided.
New lease of life
As it is mandatory to wear long-sleeved work clothes on all Eiffage Route Méditerranée work sites to help prevent potential physical and chemical injuries, this regional division donated, in 2015, its short-sleeved T-shirts to teams at Association Varoise de Sport Adapté. This association promotes the integration of people with mental disabilities through the practice of sports.
Paper resources: raising employees’ awareness
In 2015, the Purchasing department ran a specific campaign on paper printing and consumption. Its goal of reducing the group's volume of printed matter by more than 40% is designed to get employees to rethink their daily habits in this area, which can seem insignificant when in fact it represents an important source of savings.
The Group continued to promote awareness and professional development of buyers in 2015. The specialised Master Spé training courses in purchasing – “Creating performance” for buyers and “Managing performance” for managers – rolled out in Eiffage University, have enhanced the capabilities of 150 employees in line with the needs of the new organisation.
All purchasing employees will have followed, on average, three out of six training modules jointly supervised by experienced purchasing managers.
At the beginning of 2016, the Purchasing department set up the new Lodace Sourcing tool specially designed for the Eiffage purchasing function. This completes the Lodace Spend data analysis tool and replaces the various contract management tools previously used at divisions.