Coupled with the high visibility and healthcare regulatory scrutiny already needed to be a leader in pharmaceuticals, the entire Sanofi sustainable supply chain and procurement function faces a big challenge to carry out these beliefs and commitments throughout their supply chain.
Drivers and Challenges
Sanofi Sustainable supply chain and CSR strategy is built on four key areas: Patients (safety and access to healthcare), Ethics (ethics in R&D and business ethics), Environment (pharmaceuticals in the environment) and People (workforce development), with Human Rights as a foundation of the CSR approach. Within this context they identify four levers that structure the responsible procurement strategy:
- Compliance with regulations
- Risk management to secure sourcing and protect the Group’s reputation
- Drive innovation with suppliers, where they see an opportunity to differentiate their value chain.
- Set KPIs and deliver quantifiable CSR results– (ex: they seek to be positioned in the top ranking of the DJSI rating)
A specific challenge they face as a globalized procurement function spread across seven regions and 80 countries:
- How to cover all risks represented by a wide supplier base in a highly exposed industry?
- How to implement the same CSR standards and practices amongst all suppliers, considering their specificities (global suppliers, local suppliers, strategic suppliers etc.)?
Best practices: Adapting a Mature Program Sanofi began to pursue their sustainable procurement initiative as early as 2007.
In 2011 they selected EcoVadis as a strategic partner of their suppliers’ CSR performance evaluation process. A pilot was launched in 2011 as a group initiative. As results began to emerge in 2012, the program was expanded and evolved to be a central part of their Supplier Relationship and Risk Management.
- 33.8B Euro in revenue (2014)
- 13B Euro spend (2014)
- 110,000 employees
- DJSI (9yrs), FTSE4Good, Vigeo
- UN Global Compact, GRI
EcoVadis stats snapshot
- >550 suppliers assessed
- Category and country risk mapping
- 67% of Suppliers meeting Sanofi score expectations