The Group has strong local roots in the countries where it operates thanks to its direct activities, as well as its purchases. Its extensive use of local suppliers and subcontractors is in line with the Group’s commitment to supporting sustainable socio-economic development across its regions. The Group is also committed to promoting balanced relationships with its suppliers and subcontractors over the long term, thanks in particular to constructive and continuous dialogue.
The study conducted by the sustainable development consultancy Utopies© in 2019 on the socio-economic impacts of VINCI’s activities in France found that direct Tier 1 suppliers make up the bulk of the supply chain for the Group’s Energy and Construction businesses as well as its Concessions business. For instance, in France, 57% of VINCI’s suppliers are Tier 1 for all categories of purchases combined, with this figure rising to 82% for suppliers in the construction sector. The study will be carried out again based on the data for 2021.
At central level, and in each of its projects, VINCI also promotes a partnership-based approach with its suppliers and develops close relationships with small and medium-sized enterprises (SMEs). The Utopies© study found that 54% of purchases across the Group and its business lines are done with microbusinesses and SMEs. Concerning the key categories of purchases for Group companies’ activities, such as temporary employment agencies or construction equipment hire firms, the Group’s strategy is based on approving as many local and regional partners as possible in order to build a strong nationwide network and work with businesses that are deeply rooted in local economies. In its selection and bidding processes, the Group prefers suppliers with strong roots in their regions. Currently, 65% of the Group’s approved suppliers in France are SMEs with a nationwide footprint, and this is true for the Group’s network of local companies as well.
65% of the Group’s approved suppliers are SMEs or microbusinesses
VINCI is also committed to taking into account and working with social integration structures, social enterprises and other organisations that specifically employ people with disabilities. In 2021, 44% of VINCI’s approved temporary employment agencies were companies based throughout France whose mission includes promoting integration through temporary jobs. Alongside this, VINCI Insertion Emploi (ViE) has developed a new support service for the VINCI Autoroutes entities (programme management departments of Escota and ASF) to help with their socially responsible purchasing. This is a voluntary initiative by these subsidiaries, which take social commitments into account when they place their contracts (purchasing supplies, work, etc.), especially for partner selection or by working with people on integration programmes, thus promoting collaboration with social and solidarity economy (ESS) organisations in each region.
Lastly, this commitment to balanced, constructive and long-lasting relationships with suppliers and subcontractors is also reflected in the economic dependence indicator set up to ensure that suppliers are not put at risk by VINCI accounting for too high a percentage of their revenues. This indicator is reviewed each year, and special attention is paid to SMEs. If a supplier seems to be too dependent, a progress plan is put in place to encourage them to diversify their customer portfolio. More specifically, this indicator is monitored in cases when a contract is not renewed or when businesses are consulted for a new tender. Various actions are developed and the suppliers concerned are provided with support to help them find equivalent solutions and ensure their economic independence.
● Approach to identify and assess purchasing-related risks
In terms of the principles making it possible to define responsible purchases, VINCI considers that respect for human rights and international labour standards within its supply chain is essential. The Group also tends to look for innovative solutions that support the environment, climate and the energy transition with a view to not only preventing risks, but also further strengthening the environmental performance of its purchases. To achieve this, social and environmental criteria are incorporated into specifications and framework agreements at Group level, and factored in when selecting suppliers and products. They take into account the environmental impact of products and services, the workforce-related arrangements for producing or providing them, and the social commitments made by suppliers. For the categories of purchases that are most strategic, due to their volume or potential risks, specific analyses are carried out in order to assess suppliers based on their issues and stakes.
The Group Purchasing Coordination unit conducts supplier assessments that factor in social and environmental performance, and the Group’s buyers have an individual target for including these criteria in each contract they negotiate. A dedicated committee with representatives from the teams focused on non-financial aspects and from the sustainable purchasing team works on each tender in order to carry out an in-depth analysis of the specific features of each category of purchases concerned, to map its risks and to assess suppliers through a specific sustainability questionnaire that is adapted to the issues involved and added to the general questionnaire covering all types of purchases.
