5. ETHICS Target 75% of strategic suppliers across the Group assessed by EcoVadis within the last three years by 2027. Evaluation of supplier risks GEODIS employs two methods for assessing supplier risks. The most critical suppliers or those most vulnerable to ethical and compliance risks (country, category of purchase, amount of expenditure) are subjected to an in-depth analysis and a compliance and business integrity questionnaire. They are also required to undertake specifi c training on the subject. Medium- and high-risk suppliers are asked to complete a shorter questionnaire. The CSR assessment is managed via the EcoVadis platform. Any service provider scoring below 45/100 is required to implement a corrective action plan. If no relevant actions are taken within a reasonable timeframe to improve the assessment, the supplier will be removed from the supplier database. In 2024, the Group expanded the scope of suppliers involved to new geographies and purchasing categories. Thus, 374 active suppliers are now assessed, including 303 so-called strategic suppliers and 71 main transport subcontractors across different businesses. The so-called strategic suppliers are those who have a direct contribution to the Group’s purchasing strategy, are critical to GEODIS’s business processes, and represent a recurring expenditure of more than €5 million within the Group’s scope. This category does not include suppliers and subcontractors of transport, logistics, customs, import/export, taxes, real estate, and insurance. Training In 2024, the Group’s Sustainability and Purchasing Departments launched a CSR supplier evaluation training program with the support of GEODIS University and the SNCF Procurement University. 17 purchasing professionals were trained during the year, and the program will continue in 2025. Results Percentage of strategic suppliers assessed by EcoVadis in the last three years 2022 50% 2023 49% 2024 63% First annual supplier survey GEODIS surveyed 1,650 partners and subcontractors in 2024. An online questionnaire, available in two languages, consisted of 20 questions (on the quality of business relations, satisfaction and recommendation, assessment of CSR approach and support for innovation). The response rate was 17%, with an overall satisfaction rate of 94%. The quality of supplier relations and timely payment were among the main strengths identifi ed by suppliers. On the other hand, communication and the response to calls for tender, as well as support for innovation, were identifi ed as areas for improvement. 5.2.1 Supplier payment terms GEODIS’s relationships with its suppliers and subcontractors are essential to the quality of its services and its long-term success. They are based on the principles of impartiality, fairness and loyalty, with respect for the independence and individual identities of its partners. GEODIS is committed to refrain from abusing its market position to secure preferential treatment or impose unfair conditions, and ensures that its suppliers and subcontractors are not placed in a situation of undue economic dependence. Practices regarding payment terms are outlined in the Book of Business Principles. Employees are expected to observe the following rules: ● respect legal payment terms (in France, 30 days for transport services); ● otherwise, limit payment terms to a maximum of 45 days following invoice date; ● refuse to accept credit lines. If payment is to be made in more than 45 days, prior approval must be sought from the GEODIS Group Investment Committee (for contracts worth more than €5 million). Results ● Average payment period in DPO (Days Payable Outstanding): 49.1 days as of end December 2024 (compared to 52.1 days as of end December 2023). ● Number of ongoing court proceedings due to late payment: 0. ● Number of legal actions brought against the Company for late payment: 0. Key fi gure ➔94% of suppliers responding to the 2024 GEODIS supplier survey said they were satisfi ed overall with their experience as a Group supplier. 90 - 2024 ACTIVITY AND SUSTAINABILITY REPORT
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