SUPPORT SUPPLIERS IN
THEIR DECARBONIZATION TRAJECTORY
ENGIE has set up, with its suppliers, a proactive policy aimed at assisting them in reducing their carbon
footprint. This partnership approach is in line with the Group’s ambition to become a Net Zero Carbon
company by 2045.
DECARBONIZE THE VALUE CHAIN
To achieve the Group’s decarbonization
goals by 2030, the Procurement
department is mobilizing its suppliers,
who are essential stakeholders in
the Group’s value chain. ENGIE has set
a goal to have 100% of its 250 Top
Preferential Suppliers (excluding energy
suppliers) certified or aligned with
Science-Based Targets by 2030.
For this reason, the Group expanded
its approach to assist in the
decarbonization of all its preferential
suppliers (618) and major suppliers (945),
who represent 38% of the non-energy
purchasing volume. In 2022, ENGIE
prepared an inventory of the “carbon
maturity” of its 400 largest suppliers.
On November 24, 2022, during its
first Supplier Day, ENGIE brought
400 suppliers together with the Group’s
Chief Executive Officer Catherine
MacGregor. There were many questions
about sustainability in general,
and decarbonization in particular,
as elements in the purchasing road
map, but also about securing supply
chains and the need for its relocation,
innovation, digitization and health
and safety.
REDUCE RISKS THROUGH A PLAN
TO SECURE SUPPLIERS
ENGIE also decided to modify its
portfolio of suppliers to reduce its
sourcing risk One of the solutions to
reduce risks secure purchases and
control supply chain challenges includes
the relocation of the value chains
In the same spirit ENGIE decided to
support two major sector initiatives
the European Solar Initiative aimed at
developing the industrial solar power
ecosystem in Europe by 2025 as well
as the Wind Europe association that
promotes the development of wind
power on the European continent
STRENGTHEN VIGILANCE
The Procurement segment contributes
to a reduction of the risks within
the supply chain through rigorous
management of its suppliers.
These suppliers must, therefore, apply
ENGIE’s ethics and CSR requirements,
i.e. respect the right to work and human
rights, offer equitable and decent
compensation, and provide a safe
working environment.
The Group decided to reinforce its
Due Diligence policy on its solar supply
chain in order to identify suppliers
that may be involved in human rights
violations. In China, an action plan was
deployed in the Group’s supply chains
with new contract clauses aimed at
fighting the forced labor of the Uyghurs.
A search was also launched to find
alternatives in all areas where ENGIE
is exposed. In addition, the traceability
of supplies, already implemented
in the United States to comply with
the requirements of the Uyghur
Forced Labor Prevention Act (UFLPA)
,
will soon be applied to at-risk
purchasing categories worldwide in
order to select responsible suppliers.
DEVELOP INCLUSIVE PURCHASING
AND WORK FOR THE JUST TRANSITION
Purchasing also participates in the Just
Transition. In this regard, particular
attention is paid to inclusive or solidarity
purchases.
In line with the commitments made by
the GT3 working group of the
Collectif
d’entreprises pour une économie
plus inclusive,
Purchasing has set up
mechanisms to facilitate “inclusive”
purchases, which are monitored by one
of the Group’s non-financial indicators.
In 2022, the Group defined an Inclusive
Purchasing Policy in France directed at
suppliers who hire and provide lasting
income to people with disabilities
or long-term unemployed workers.
This policy will be adapted in other
countries in 2023 in accordance with
local regulations and culture.
To learn more, see the Just Transition
Notebook.
At Carrier we are committed to supporting Engie
in its strategy to decarbonize and provide innovative
HVAC Heating Ventilation Air Conditioning
and control solutions to make a difference in
the market and for the planet
Didier Genois
Vice President and Managing
Director CARRIER HVAC
Europe Carrier
2023 INTEGRATED REPORT - 45