5. Ethics 5.2 Responsible value chains GEODIS occupies a key position in global value chains and makes use of numerous suppliers and subcontractors. The risk of noncompliance by these suppliers and subcontractors on ethical, social or environmental issues could expose the Group to legal action and have an impact on its performance and its ability to satisfy its customers. Anticipating these risks is therefore a matter of responsibility and exemplarity for the Group, which must be vigilant not only in its role as an employer, but also as a customer. Depending on the country and on the services provided, GEODIS teams may assign part of the work to subcontractors, provided that the latter comply with the third-party management program, which includes but is not restricted to ethical and compliance issues. 5.2.1 Third-party integrity verification procedure GEODIS has introduced a third-party integrity verification process called “Know Your Business Partner” to supplement the verification procedures prescribed by local legislation. This was launched in 2015 and consists of a policy attached to the Code of Ethics, a Supplier Code of Conduct and two questionnaires. The objective is to ensure that the third party in question respects the same level of commitment as GEODIS in terms of ethics and compliance. The “Know Your Business Partner” process includes a detailed review of the third party under consideration, using a risk-based approach. This system is structured around the risks identified in GEODIS’s corruption risk mapping. Third parties potentially presenting a high risk in terms of the Group’s risk maps are analyzed in depth and are subject to enhanced due diligence measures (including questions about their compliance program, shareholding and ultimate beneficial owner) and integrity checks against external databases, which may result in the imposition of remedial measures. In addition, third parties are obliged to accept the terms of the Supplier Code of Conduct (aligned with those of the Code of Ethics and the principles of the United Nations Global Compact), which includes the right for GEODIS to conduct audits at sites and reminds suppliers and subcontractors of the existence of the Group’s whistleblowing system, which allows them to report any shortcomings. Third parties deemed to present a high risk are also required to undergo compliance training provided by the Group Compliance Department and/or members of the network of specialists. This training enables GEODIS to ensure that third parties understand its ethical and compliance standards and expectations. In 2023, 300 “high-risk” third parties completed compliance training (the number in 2022 was 233). In 2023, the Group rolled out a pilot for supplier evaluation and qualification with the Coupa RPMA (Risk & Performance Management Advanced) tool. The Risk Assess module provides an automatic score on the supplier’s financial health and selects any events that may have generated unfavorable press coverage for the Company. If the initial score provided by Risk Assess is deemed insufficient, the supplier is sent another, more in-depth analysis questionnaire, including social and environmental criteria. For suppliers most at risk, the Group uses the Altares IndueD platform, which specializes in compliance issues. This test phase focuses on new direct and indirect suppliers managed by the Group’s Strategic Suppliers Department and also by the Distribution & Express line of business. The aim of this pilot phase is to confirm the use of the Coupa RPMA tool before a gradual roll-out to all the Group’s regions and lines of business. In addition, the thresholds of eligibility will be progressively reduced to eventually include all the Group’s new suppliers. 5.2.2 Actions for reducing the social and environmental impact of subcontracted services The Group is committed to taking social and environmental issues into account in its purchasing policy for services and wants to build long-term, balanced and sustainable relationships with its suppliers and subcontractors. The Distribution & Express line of business has set up a system for its subcontractors operating in Low Emission Zones (LEZs) to support efforts to decarbonize its entire value chain. Through a collaborative approach, the Group provides its partners with concrete means to speed up their energy transition. For example, following an extension in 2021 to its scope of activity, GEODIS Equipment, an internal fleet rental service provider, now also provides rental services to external customers. The Group can therefore offer its subcontractor partners a sustainable low-carbon transport rental solution, available in both natural gas (bioCNG) and electric versions. GEODIS can provide its partners with a fleet of 3.5- and 12-tonne vehicles, using an adapted rental service contract. At the same time, the Group also gives its subcontractor partners access to its network of low-carbon refueling infrastructures (CNG stations and electric charging terminals) at favorable rates. 86 - 2023 ACTIVITY AND SUSTAINABILITY REPORT
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