SOURCING & PROCUREMENT SUSTAINABLE CHARTER
Introduction Essilor International has an excellent reputation and is recognized as a responsible company by several major rating agencies in economical, social and environmental terms. Our sourcing & procurement sustainability policy is based on the respect of our suppliers and the quality of their product and service offerings. With this, we aim at ensuring the sustainability of Essilor International global performance in the respect of our values and principles in economical, social and environmental terms. We consider this approach as a continuous improvement process. This sourcing & procurement sustainability policy is aligned with the following documents: Essilor International Principles & Values Essilor International Global Sourcing & Procurement policies UN global compact of which Essilor International is signatory This sourcing & procurement sustainability policy and charter will be released to all group suppliers and employees involved in the Sourcing & Procurement process. 2
Application of the Charter For the Sourcing & Procurement function, agreement and respect of this charter is fully part of the supplier evaluation process (as well as competitiveness or supply performance). All main points of our Sourcing & Procurement sustainability policy are included in Essilor International Global Sourcing & Procurement policy as well as in Group General Conditions. A committee in charge of following up the respect of this charter will be put in place and will report once a year to the executive committee of the Group. Essilor International employees and suppliers can refer cases to this committee in the last instance. By default, Essilor International employees and suppliers can communicate confidentially with this committee by using the following email address: GlobalSourcingAndProcurement@essilor.fr In a continuous improvement mindset, each supplier is encouraged to inform his counterpart within Essilor International (or by default to the email address mentioned above) about: Its initiatives aiming at complying to key principles outlined in this charter Any roadblock in the interpretation or execution of the principles outlined in this charter 3
Role of Essilor International Employees Local, Regional or Central Sourcing & Procurement professionals as well as all employees involved in the Sourcing & Procurement process should assess their suppliers and potential supplier-related risks. As part of their mission, they promote the principles of this charter in their relationships with suppliers in particular: Develop the concept of «Sustainable Sourcing & Procurement» Respect contractual agreements, information confidentiality and intellectual property Respect free competition and fairness of supplier selection Develop a sustainable relationship with key suppliers in order to mitigate potential dependency risks Respect bribery prevention group policy Inform direct hierarchy about any potential conflict of interest situation with a supplier In general, respect the principles of this charter 4
Respect of Principles by Essilor International Suppliers Essilor International is signatory of UN Global Act and expects its suppliers to be aware, comply to and promote its principles in their sphere of influence. Essilor International also expects its suppliers to be aware and to comply to Essilor Group Principles and Values which can be found on Essilor Corporate website. Essilor International encourages its suppliers to contribute to Essilor commitments to comply to all these principles. 5
APPENDIX 6
APPENDIX GLOBAL COMPACT 10 PRINCIPLES Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Labour Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies. 7 Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.