CORPORATE RESPONSIBILITY account the risks that might affect the stakeholders functional divisions at the Group headquarters that and those which could result from the stakeholders’ assist the entities in implementing these controls. activities. They wil l then be classified by impact, This system is monitored and supervised by Rexel’s probability of occurrence and level of risk control, Audit and Risk Committee. in relation to various factors: impact on reputation, Also, following the positive results of a pilot project operating impact and customer impact, volume rolled out in 2013 and 2014, the Rexel Group decided of procurement, nature of the procurement family to roll out as from 2015 a platform on a global scale (type of product families, strategic supplier), etc. in order to question and assess its suppliers’ CSR This risk assessment wil l be carried out by using (Corporate Social Responsibility) performance. statistical tools for each product family and each country and will be complemented by bibliographic Beyond the platform, the assessment process follows research and interviews with internal and external a structured methodology and timetable to ensure its experts for the most specific types of risk to Rexel. success. For each supplier, a team is set up to integrate The 2018 Annual Report will present the main risks a person from the Group’s Sustainable Development identified as well as their assessment. Department who guarantees compliance with the method and the person responsible for the supplier in countries. This team has an objective of external (ii) Procedures for the periodic assessment of communication and education with suppliers and the situation of subsidiaries, subcontractors or internal communication with all purchasing teams. suppliers with whom an established business The Group has set itself a coverage target of 80% of relationship is maintained, in view of risk mapping its direct purchase volume (in value) for these CSR 4 The Rexel Group has established, since several years, performance assessments in 2020. At the end of measures to identify and prevent serious violations 2017, 47% of the 2017 direct purchase volume were of human rights and fundamental freedoms, health assessed. Al l of the suppl iers assessed received and safety, and the environment in the subsidiaries personalized feedback on their performance and, and all the value chain. where appropriate, the areas for improvement. The Rexel Group and its branches network are a In addition to these assessments, in order to ensure decentralized structure based on the accountability that the social and environmental contractual of the entire reporting chain (see paragraph 2.3.3 clauses entered into are applied, Rexel carries out “Internal Control and Risk Management Procedure” on-site audits for certain targeted suppliers. In 2017, of this Registration document). The revised 2017 Rexel carried out 18 on-site audits or visits. Following Internal Control Procedures Manual includes controls these audits, a progress action plan is set up. In the related to ethics, employee health and safety, as well event that the findings of the audit do not make it as compliance with laws relating to the environment possible to ensure that the contractual clauses are and civil liberties and human rights. The assessment complied with, Rexel terminates the partnership system is based on the subsidiaries’ annual self- with the supplier. assessment of the implementation of these controls In view of the findings of the risk mapping, the Group and the implementation of action plans to improve could be led to: control. •Amend the internal control procedure; A network of “ethics correspondents” was put in place to drive the Rexel Group’s ethics policy. These •Review the procedure, frequency of evaluation correspondents are appointed by the country heads and audit of the subsidiaries and the entire value and perform this function over and above their chain; and other duties. They make sure all Group employees •Focus on-site assessments and audits on suppliers receive a copy of the Ethics Guide, take all necessary and/or countries that wi l l have emerged as measures to implement the Rexel Group’s ethical priorities in terms of risks. principles and practices, and respond to any queries that may be addressed to them. (iii) Appropriate actions to mitigate risks In addition to the self-assessment performed by the or prevent severe harm subsidiaries, risk mitigation actions are carried out In addition to the above-mentioned suppl ier by internal and/or external audits, as well as by the assessment actions, the Rexel Group requires all of REXEL 2017 – REGISTRATION DOCUMENT 163