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Committed to a sustainable supply chain

13

Teaming up with our suppliers

Sustainable supply chain

If we want to tackle climate change, we need everyone to do their part. As a company with over 4,000 suppliers, we are taking our responsibility in building a sustainable supply chain. By working closely with our suppliers and setting strict sustainability standards and clauses, we can further reduce our impact and contribute to a better world. KPIs

Result 2019

Result 2018

Percentage of suppliers screened using social criteria (incl. working conditions, human rights, etc.) who received a Silver or Gold recognition levelš

85%

87%

Percentage of suppliers screened using environmental criteria who received a Silver or Gold recognition level 1

75%

83%

100% contracts with CSR clause. 1 Based onthe EcoVadis assessment.

Proximus Group I Annual report 2019

Proximus is seen as a best practice company in managing the Corporate social responsibility (CSR) risks of our vendors. In 2019, the international non-profit organization CDP has included Proximus in its "Supplier Engagement Leader Board". Today 100% of our contracts have a CSR clause on social, ethical and environmental standards for our vendors. We have a leading position in EcoVadis (supplier sustainability ratings) and JAC (Joint Audit Cooperation, CSR assessment of suppliers in IT) with risk audits, assessments and scorecards of vendors. Together with our suppliers, we strive to improve social and environmental (SE) standards throughout the supply chain. This can be achieved by raising the suppliers’ SE performance and improving their supply chain management, while also increasing our own efficiency. We integrate SE standards on child labor, forced labor, health and safety legislation and protection of the environment into our purchasing processes. By so doing, we improve our brand image and improve the communities in which our suppliers operate. Those standards serve as a supplier selection criteria and are included in all contracts through our CSR clause. On a recurrent basis, our suppliers are asked to participate in an EcoVadis assessment. In 2019, scorecards were compiled for suppliers representing 32% of the total purchase amount. In 2019, a Silver or Gold EcoVadis recognition level was awarded to 85% (87% in 2018) of 143 suppliers assessed against various social criteria, and 75% (83% in 2018) against environmental criteria. Since 2018, Proximus itself has been awarded the EcoVadis Gold label.

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In our sourcing methodology for products and services, we introduced new standards for circular sourcing, focusing on standardization, reuse, refurbishing, recycling and avoiding virgin materials. Proximus is a member of the Joint Audit Cooperation (JAC), together with 16 other telecom operators representing over 50% of worldwide telecom turnover. In 2019, 84 on-site worldwide company audits were conducted in collaboration with JAC each of them resulting in an effective improvement or an action plan. Proximus conducted 5 audits out of 84 in 2019. We will audit 5 other suppliers in 2020. In 2020,

Proximus at a glance

Sustainability

every new supplier will have to complete a survey and reach a predefined level of compliance. We will further raise the importance of sustainability. With that goal in mind, we will continue the implementation of EcoVadis and JAC standards, by focusing on the circular economy in our use of products and by reducing the carbon footprint of procured goods. By 2021, we want to evolve from a company committed to CSR and Sustainability to a company that is truly using CSR and Sustainability as key differentiators in its choices of suppliers and in its activities.

Governance and Compliance

Appendix

Profile for Proximus

Proximus annual report - 2019  

Proximus annual report - 2019