Air Liquide strives to build long-lasting and balanced relationships with its suppliers, in an environment of mutual trust.
Towards a long-term partnership
The Group attaches great importance to the ability of its suppliers to offer long-term partnerships and to ensure a high level of safety, reliability, competitiveness and innovation, while guaranteeing that ethics and sustainable development are also taken into account.
Sustainable procurement policy
These principles are set out in the following documents:
The Procurement Code of Conduct, translated into several languages, which applies to all Group employees engaged in Procurement activities
The Sustainable Procurement policy, updated in 2018, lays out the guidelines to be applied by the procurement departments to integrate ethical, social and environmental aspects in their procurement processes, and defines the prevention approach for the related supplier risks. A CSR commitment clause (covering compliance with the Supplier’s Code of Conduct, safety, and the environment) is included in the contract templates used by the Procurement teams and signed by suppliers
Our requirements to suppliers
The Supplier’s Code of Conduct aims to promote and enforce practices relating to human rights, ethics, the protection of the environment and safety.
Air Liquide expects each of its suppliers to respect the Group's ethical principles and to ensure that this Code of Conduct is respected by all their employees and subcontractors.
As part of its supplier monitoring approach, the Group classes its critical suppliers according to seven main criteria including, in particular, the supplier’s business, the amount of average expenditure with the supplier, and the supplier’s dependency ratio to Air Liquide.
Among its critical suppliers, 1,200 present a critical CSR risk for the Group. The aim is to assess their CSR performance through to 2020. Corrective action plans are regularly implemented for those with an unsatisfactory score. In 2018, more than 230 suppliers were assessed.
A recognized sustainable procurement approach
In April 2018, Air Liquide received recognition from EcoVadis in the “Sustainable Procurement: Stakeholder Engagement” category. These awards recognize best-in-class practices and commitment to founding sustainable procurement programs.
Since 2015, a network of correspondents from the Group’s main procurement organizations has been set up and is used as a local intermediary for the implementation of the sustainable procurement approach.
Since 2016, a sustainable procurement category has been introduced in our “Air Liquide Procurement Awards” to promote the best initiatives in this field and increase their visibility within the Group. Thirteen projects were submitted in this category in 2018.
In May 2018, Air Liquide China and E&C China provided sustainable procurement training to around one hundred Chinese suppliers during a “Suppliers Day” in partnership with EcoVadis. Three suppliers received the “Air Liquide China 2017 Excellent CSR Supplier Award”.