Supplier risk

 Objectives

Make sure that suppliers are effectively committed to sustainable development, in compliance with the Group's action principles.

 Benefits

• Improve the social and environmental performance of tier 1 and tier 2 suppliers. This factor contributes to long-term partnership relations.
• Integrate the Group's social and environmental requirements in supplier selection criteria.

 Resources

In 2005, the Purchasing Division drafted and validated an action plan for 2006-2007 with a view to checking supplier compliance with the Group's sustainable development requirements. The plan comprises the following measures:
1) Supplier commitment to respecting the Group's environmental and social requirements, particularly the global framework agreement on the corporate social responsibility of PSA Peugeot Citroën.
2) More in-depth mapping of high-risk suppliers, and tracking procedures based on a questionnaire to verify the compliance of suppliers identified as representing a risk.
3) If necessary, organisation of an audit on the premises of these suppliers, to set a corrective action plan.

 Steps in progress

• 2004: First supplier mapping process, cross-referencing product/process/country risks
• 2005: Definition of the principles and verification methods
• 2006 : Formal definition of the social and environmental requirements of PSA Peugeot Citroën
• 2007 actions:
  - Gradual commitment to respect Group standards obtained from all suppliers
  - In-depth risk mapping with a questionnaire sent out to all suppliers concerned
  - Audit firm selected and resources identified with a view to carrying out any necessary audits
  - Group purchasing teams receive education/training in the new processes