Universal Registration Document 2024

Glossary

ESRS S2  VALUE CHAIN WORKERS

The European CSRD regulations and the ESRS require companies to explain their interactions with different social groups. These interactions vary depending on the industry, business sector and company. In this respect, given that it provides intellectual services activities to companies and in view of the priorities resulting from the double materiality analysis, Publicis Groupe focuses on employees in the so-called supply chain.

4.3.9 Focus on employees in the supply chain

For Publicis Groupe, employees in the upstream value chain are mainly the employees of our suppliers, namely:

  • those seconded to our offices as part of an on-site service;
  • those who regularly work with our teams on projects for our clients;
  • those working on products and services purchased by the Groupe and its subsidiaries. [SBM-3-11 (b)]

The ESRS SBM-3-11 requirements on value chain impacts, including the supply chain, are the subject of an analytical work by the Procurement Department. The objective is to identify, by category of supplier, the structure of the relations between the various partners in each value chain to identify the due diligence needed to specify the Company’s role of influence in order to avoid any significant adverse impacts that could occur.  [SBM-3-11 (c)]

The CSR for Business Guidelines highlight the Company’s desire to build a partnership with its suppliers in order to ensure an attractive business relationship for all parties. As part of multi-year contracts, annual reviews are provided to address CSR metrics and their progress; for example, the measurement and reduction of carbon emissions or participation in social innovation projects, such as Working With Cancer. See Section 4.3.10.3 on the “Enhanced ESG Program.”  [SBM-3-11 (d)]

4.3.9.1 Procurement impacts, risks and opportunities – in brief
Impact type Risks Opportunities Policies and organization Mitigation measures & major actions

Impact type

Responsible purchasing Suppliers have a key role in building a more sustainable world The type of purchases made by the Groupe generate positive or negative economic & social impacts, which may affect supplier employees

Risks

  • The main risk lies in unbalanced relationships with suppliers that could jeopardize the Groupe’s activities and projects for clients
  • Environmental or human rights risks could affect supplier employees

Opportunities

Working in trust with partners promotes innovation and the co- construction of products and services, regardless of the size or activity of the suppliers

Policies and organization

  • Janus - Values
  • CSR for Business Guidelines

Mitigation measures & major actions

  • As part of due diligence (see Section 4.3.11.2), in the financial analysis of the relationship with the supplier, particular attention is paid to the weight that the Groupe represents for suppliers. Above 20%, ad hoc monitoring is carried out by buyers
  • The CSR program for monitoring strategic suppliers, “Enhanced ESG Program,” assesses the issues and enables the supplier to provide sufficient advance warning if difficulties may arise
  • Social audits are launched in the “Facilities Management” category (see Section 4.3.10.3)
4.3.9.2 Procurement Policy CSR for Business Guidelines

The CSR for Business Guidelines Policy, the Code of Conduct for suppliers, is a contractual appendix which is binding on the supplier regardless of the country. This public document (on the Groupe’s website) establishes 17 key points and reciprocal commitments in terms of sustainability, relating to social, ethical and environmental issues. This policy is subject to an annual review between the Groupe Procurement and Groupe CSR Departments in order to adjust the levels of requirements and take into account regulatory changes. This policy indicates “zero tolerance” in terms of forced labor, modern slavery or child labor. This same “zero tolerance” is applied to situations of discrimination and harassment in all their forms. This policy also contains the channels available for whistleblowers, including the external and independent platform. [S2-1-16, S2-1-18]

The 17 points are as follows:

  1. CSR commitment – Human rights section;
  2. Business ethics – Labor law & Fundamental Freedoms;
  3. Anti-corruption and fight against fraud;
  4. Data Protection and security;
  5. Environmental impacts;
  6. Net Zero target;
  7. Accessibility;
  8. CSR assessment (by a third party) or CSR self-assessment;
  9. Supplier diversity;
  10. Sustainable value chain;
  11. Confidentiality of all information;
  12. Contractual relationships to avoid risks;
  13.  Economic relationships to avoid a situation of dependency;
  14. Compliance with competition rules;
  15. Right to conduct an audit;
  16. Incident reporting and whistleblowing system;
  17. Joint CSR actions. [S2-1-17 (a) To (c)]