Groupe Renault - 2020 Universal Registration Document

233 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 02 ETHICS AND GOVERNANCE GROUPE RENAULT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY CORPORATE GOVERNANCE FINANCIAL STATEMENTS RENAULT AND ITS SHAREHOLDERS ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021 ADDITIONAL INFORMATION In 2020, the CSR performance (Group level) of Groupe Renault's Top 500 parts and Top 200 services suppliers (representing approximately 88% of the total purchasing) was as follows: Parts (Top 500) Services (Top 200) Total 2019 Total 2020 Percentage of direct purchase volume covered by a CSR assessment (1) 93.7% 89.2% 84.1% 93.1% Percentage of total purchase volume covered by a high or very high grade CSR assessment (3 years) 85.9% 87.0% 74.8% 86.0% Number of direct Group suppliers covered by a CSR assessment (1) 378/500 151/200 405/700 529/700 High or very high CSR performance rate (less than 3 years) 303/500 144/200 338/700 447/700 CSR assessment: carried out by an independent third party within the last three years. (1) Moreover, in 2020, the average performance of the supplier groups assessed in the Top 500 parts suppliers on the: "Environment" was 57.6/100; P "Social & Human Rights" was 52.3/100; P "Ethics" was 49.0/100; P "Responsible Purchasing" (among our suppliers) was 45.0/100. P Specific work on the cobalt/electric 2.5.2.8 battery sector Mapping of minerals and materials risks Groupe Renault is particularly vigilant as regards to the origin of certain minerals and materials, for which risk mapping is also carried out. In the light of Groupe Renault’s commitment to human rights and fundamental freedoms, and particularly the fight against child labor in its supply chains of minerals and materials from high-risk countries, Groupe Renault works in priority since 2017 with the cobalt sector, as this mineral is used in electric batteries. The Group selected a specialist audit firm in this sector to fully map its supply chain and perform on-site audits for the identified stakeholders. Specific actions to mitigate risks and prevent claims In 2019 this specialist firm carried out 17 site audits for certain suppliers and subcontractors in the cobalt supply chain. Audits were conducted at each level of the supply chain, starting with cathode suppliers and even down to some small-scale mines in the Democratic Republic of the Congo (DRC). No critical cases of non-compliance were identified, and corrective action plans are being implemented. In 2020, the monitoring of action plans by cathode suppliers and certain refiners continued. Renault has been a member of the Responsible Mineral Initiative (RMI) since 2017. The RMI’s objective is to strive to implement a responsible supply chain for minerals and materials originating from Conflict Affected and High-Risk Areas (CAHRAs). RMI brings together the major players of the electronics and automotive industries. It meets monthly and the minutes of these meetings are sent to all of its members. In 2020, cobalt has been once again our main priority throughout this initiative. In 2020, Groupe Renault also joined the Child Labour Platform (CLP) of the ILO (International Labour Organization). The Child Labour Platform aims to identify obstacles to the implementation of ILO Conventions in production lines and in neighboring communities, to develop practical ways to overcome these obstacles and to coordinate collective action with its members and other partners. Purchasing contribution 2.5.2.9 to the reduction of CO 2 emissions in the supply chain Through the scope of its activities, the purchasing department (APO) is a major player in helping reduce greenhouse gas emissions in Groupe Renault's supply chain. APO is involved in each of the stages, whether for the purchase of parts and raw materials, transport services for parts or vehicles and energy. In 2020, Groupe Renault defined the terms of a program to strengthen the integration of climate change challenges into purchasing decisions. A local integration strategy EFPD14a 2.5.2.10 Local integration is a major element of Groupe Renault’s purchasing policy because it can improve the Group’s competitiveness, reduce its exposure to monetary fluctuations and contribute to the development of the regions where it is located. A local approach has numerous advantages leading to the reduction of costs. Thus, the local purchasing of parts can reduce transport and customs costs. This proximity also enables the Company to be more responsive, to adapt more quickly to changes in demand from its customers and to participate in local development and notably the local employment pool. To promote local integration, Groupe Renault has created dedicated teams, firstly in Russia, then in Brazil and India. These teams, from purchasing, engineering, sales costs and logistics, launch local calls for tenders to purchase parts that until then were imported. The localization rate is intrinsically connected with local regulations, currency exchange rates, the Group’s industrial activity (launching of new projects) and may vary on a year-to-year basis.