Groupe Renault - 2020 Universal Registration Document

232 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 02 ETHICS AND GOVERNANCE GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY Supplier risk mapping to identify, 2.5.2.3 analyze and prioritize risks DV1b Under the law on the duty of vigilance (section 2.1.6), Groupe Renault uses in particular a mapping of the risks of suppliers with whom an established commercial relationship exists. In terms of risks relating to human rights and fundamental freedoms, health and safety of persons, the environment, ethics and compliance, two areas have been singled out for analysis: risks relating to families of purchases; P parts. The families of purchases have been classified according to P risks, services. The families of purchases have been included in a P nomenclature produced by an external service provider based on the criteria of the law on the duty of vigilance; country risks. The mapping used was produced by an external P service provider based on the criteria of the law on the duty of vigilance. The combination of these two risk factors has enabled supplier and subcontractor sites to be ordered according to four levels of criticality: “low”, “medium”, “high” and “very high”. For those parts production facilities or service provision entities representing the highest potential risks and which have never undergone a CSR assessment, or for which the CSR assessment is not at the required level, external companies carry out audits on the ground. In order to reduce the risks, these sites are audited based on a triennial plan (2018/2019/2020). Regular evaluation procedures for 2.5.2.4 suppliers and subcontractors DV2b To regularly evaluate its suppliers and subcontractors, Groupe Renault uses: purchasing processes which incorporate CSR criteria into P selecting suppliers and subcontractors to enter its panel but also for awarding new contracts; an Internet platform (through an external solution) to assess P suppliers’ and subcontractors’ CSR policies and actions, and to incorporate the CSR performance of suppliers into purchasing decisions. For all subjects relating to the content of these documents, any uncorrected non-compliance could result in measures being taken that may include the termination of relations with the Company in question. Thus, the management of suppliers' CSR risk is integrated into overall risk analysis, just as financial risk or strategic risk is integrated into overall risk analysis. In 2020, the analysis and management of suppliers' CSR risks has been deepened on the panel of the Top 500 Parts (BOP) and the Top 200 Services (NBOP) suppliers, covering 88% of global purchasing amount. Actions to mitigate risks and prevent 2.5.2.5 serious infringements DV3b In the context of mitigating risks and prevent serious infrigements, Groupe Renault has commissionned 82 social, environmental and ethics audits of supplier sites since 2018, performed by external companies in six countries, including Algeria, China, India, Romania, Russia and Turkey. Specific emphasis was given to the monitoring of corrective action plans put in place by the suppliers with the lowest scores, with mandatory re-auditing for these suppliers. In 2020, Groupe Renault continued to monitor the progress of corrective actions taken by suppliers who obtained insufficient results in audits. In Turkey, several suppliers were successfully re-audited, although for one of them a special monitoring plan was put in place because the level achieved was insufficient. However, the coronavirus pandemic has had many consequences on follow-up activities, including the cancellation of a new audit campaign. Professional whistle-blowing DV4 2.5.2.6. See section 2.1.5, “Professional whistle-blowing.” System for monitoring the measures 2.5.2.7 implemented and evaluating their effectiveness DV5b Groupe Renault traditionally measures the CSR performance of its suppliers through two main criteria: percentage of direct purchase volume of parts, services & P equipments covered by a CSR assessment; percentage of total purchase volume of parts, services & P equipments covered by a high or very high grade CSR assessment. In 2020, with the refocusing of efforts on the Top 500 parts suppliers and the Top 200 service providers, two new indicators were created to expand the number of suppliers assessed: the number of parts, services and equipment suppliers subject to a P CSR assessment; the number of parts, services and equipment suppliers whose CSR P score reflects high or very high performance.