2022 Universal Registration Document

2.2 Relations with suppliers and subcontractors

2.2.1 Group-wide approach to promote responsible purchasing

Purchasing is a crucial source of performance for the Group. It is understood that purchasing processes must always seek to optimise costs, secure supplies and manage risks effectively, while building long-lasting relationships with strategic partners. This approach is aligned with the Group’s objective for all-round performance. The Group’s environmental, social and ethical objectives through purchasing will only be achieved by working closely with our stakeholders and being a responsible partner.

For several years, the proportion of purchases has remained stable, representing 57% of the Group’s revenue at end-2022 (56% at end-2021), excluding the Cobra IS acquisition. They include €14.9 billion for materials (€10.7 billion in 2021), €6.7 billion for external services (€5.5 billion in 2021) and €11.8 billion for subcontracting (€9.8 billion in 2021).

Percentage of revenue allocated to purchases

In 2022, VINCI continued rolling out its responsible purchasing approach, aiming to take into account workforce-related, social, ethical and environmental factors when selecting its partners. The criteria for responsible purchasing and the various actions to take these criteria into account are set out in the Group’s responsible purchasing guide.

The governance for purchasing teams was adapted in 2022 to ensure that this approach could be deployed at various levels within the Group:

• A VINCI Purchasing Committee is sponsored by an Executive Committee member, as the Group Purchasing Correspondent, and brings together the various purchasing correspondents from across the Group and VINCI representatives from the functional teams concerned (specialists in workforce-related, social and environmental aspects, ethics and legal issues). The Group Purchasing Coordination Director acts as this committee’s coordinator and secretary. The committee meets four times a year and has a mission to define and oversee the implementation of the Group’s purchasing policy.
• The Purchasing Directors Committee implements the decisions taken by the VINCI Purchasing Committee. Made up of purchasing directors and managers from each of VINCI’s business lines and divisions, it is responsible for coordinating the various initiatives and actions across the business lines. The Group Purchasing Coordination Director is responsible for coordinating this committee and serves as its secretary.

In addition, dedicated cross-business correspondents are in place to support Group companies and operations:

• A Group Purchasing Coordination unit, which reports to the Group Purchasing Correspondent, has been realigned around four core categories of purchases (temporary employment, energy, vehicles, travel and telephony) for which it is now a dedicated hub with expertise in these areas. This unit supports the operational teams and works closely with the functional teams concerned and the purchasing departments in the business lines and subsidiaries through an extensive network of buyers. It also puts in place framework agreements for approved suppliers, liaising with their local internal users. It ensures that the Group purchasing guidelines are correctly applied by the business lines. Its mission also includes developing and maintaining the data consolidation and information sharing tools at Group level.
• Purchasing Pivot Clubs in six French regions and the main countries where the Group operates, linked to the executive Pivot Clubs, whose role is to help improve purchasing synergies and to promote and implement the Group purchasing policy at local level.
• A Sustainable Purchasing Committee, which supports the purchasing departments in the Group’s business lines and divisions, has a mission to ensure that purchasing processes factor in non-financial aspects, while also overseeing cross-business projects or actions bringing together the purchasing teams and the teams focused on workforce-related, social and environmental issues and ethics. This committee is made up of purchasing directors and managers from each of VINCI’s business lines and divisions. The VINCI Sustainable Purchasing Manager is responsible for coordinating this committee and serves as its secretary, in addition to liaising between the Group purchasing teams and the teams focused on non-financial aspects (workforce-related, social and environmental issues and ethics).

2.2.2 Sustainable and long-lasting relationships with local suppliers and subcontractors

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.