Universal Registration Document 2023

4. Corporate Social Responsibility Non-Financial Performance - AFR

4.3.9.3 Supplier Diversity

Publicis Groupe works with a large number of local SMEs and VSEs, and recognizes that diversity among suppliers is essential because it is a source of innovation and agility. As such, and in compliance with the legislation in force in each country, the Groupe encourages so‑called "diverse suppliers" (led by an ethnic minority, women, LGBTQ+, disabled people, etc.) to participate in tenders, as well as suppliers from the social and solidarity economy or social entrepreneurs. This proactive approach is conducted in many countries, such as the United States and Canada (companies run by minorities), the United Kingdom and India (companies managed by women or with disabled employees) and in South Africa. In France, the Groupe works with companies in the Social and Solidarity Economy, and sheltered‑workshop organizations and companies (ESAT and EA).

The Groupe continues to focus on women‑led companies through its partnership with WEConnect International, which gives access to several thousand companies managed by women in many countries. In the United States, Publicis Groupe has had its own unique ecosystem for several decades, with various agencies certified as diverse suppliers, such as Burrell, specializing in African‑American consumers. Based in Chicago, it is minority‑owned & women‑owned. Rauxa was also founded and is managed by a woman. Conill and La Communidad are two agencies with Latin American managers and teams. Finally, in 2021, Publicis Groupe announced a joint‑venture between its agency Le Truc in New York and Retrospect, an experimental design and technology studio that focuses on the cultural differences related to various African‑American communities. The Groupe is attentive to this commitment to these suppliers:

  • direct management of a portfolio of suppliers which are Diverse Supplier certified, with which relationships of trust have existed for many years. For example, the American agencies have been working for decades with a portfolio of more than 1,300 accredited suppliers, of which 35% are women‑owned (WBE) and 25% minority‑owned (MBE). In South Africa, the Groupe works with a network of 380 minority‑owned suppliers;
  • the deployment of an external tool providing access to a database of several thousand certified and qualified suppliers in relation to the needs of agencies and teams. This tool makes it possible to draw up a selection of suppliers to be approached according to the opportunities. The platform also makes it possible to immediately identify suppliers who have already worked with one of the Company’s subsidiaries;
  • these supplier diversity issues are processed within a Steering Committee, which meets monthly, chaired by the Groupe Secretary General, supervised by the Director of Shared Platforms (Re:Sources) and coordinated by the Chief Procurement Officer. The progress made shows an improvement of +42% in the amount spent in the US

market with these various suppliers since 2021 and +20% compared to 2022. This Steering Committee also monitors partnerships with dedicated organizations such as the NMSDC (National Minority Supplier Diversity Council) or the WBENC (Women Business Enterprise National Council) in the United States, around their respective support programs for suppliers in the process of certification.

4.3.10 Duty of Care Plan

In accordance with law No. 2017‑399 of March 27, 2017 on the duty of care required for parent companies and contracting companies, transposed in article L. 225‑102‑4 of the French Commercial Code, Publicis Groupe has drafted and implemented a plan comprising duty of care measures for the identification of risks and prevention of serious infringements in the areas of human rights and fundamental freedoms, health, personal safety and the environment, resulting from the Company’s activities and those of the companies it directly or indirectly controls, as well as the activities of subcontractors or suppliers. This plan includes:

  • a mapping of risks for their identification, analysis and prioritization;
  • procedures for assessment of the situation of subsidiaries, subcontractors or suppliers with which the Groupe has an established business relationship, with regard to risk mapping;
  • appropriate actions to mitigate risks or prevent serious harm;
  • a mechanism for alerting and collecting alerts relating to the existence or occurrence of risks;
  • a system for monitoring the measures implemented and assessing their effectiveness.
4.3.10.1  Governance and scope

The dedicated Steering Committee on Duty of Care, set up in 2017, is made up of members of the Internal Audit, Risk Management and Internal Control Department, as well as the CSR, Procurement, Human Resources and Legal Departments. This Committee reports to the Groupe’s Secretary General, a member of the Management Board. The Steering Committee meets annually, and thematic working sessions are organized in smaller committees The mapping of the Duty of Care risks and the progress of the actions implemented as part of the Duty of Care plan were presented to the Strategy and Risk Committee and the Supervisory Board in September 2023. The Duty of Care plan covers all the activities of Publicis Groupe and its subsidiaries, as well as those of its subcontractors and suppliers with which it has an established commercial relationship.