The State of Anti-Corruption in the Supply Chains Highlights of - PowerPoint PPT Presentation

Webinar Series The State of Anti-Corruption in the Supply Chains Highlights of the EcoVadis Study on 20,000 Companies Document Classification: EcoVadisConfidential

Speakers Riley Scherer Melina Goncalves Bettina Grabmayr Senior Manager, Business Senior CSR analyst Senior CSR analyst Development, Sponsorship Fulfillment, & Expo Sustainable Brands EcoVadis EcoVadis 2 Document Classification: EcoVadisPublic

Agenda Introduction 1 The State of Anti-Corruption in the Supply Chain 2 3 Q&A Conclusion 4

About EcoVadis

EcoVadis: the Global CSR Ratings Network 300+ MNCs / Brands 50,000+ Suppliers ● ● ● 12,000 buyers ~1.5Tn$ spend 70% SMEs 190 categories 150+ countries 5 Document Classification: EcoVadisConfidential

A Robust Methodology: 21 CSR Criteria Covered LABOR & SUSTAINABLE ENVIRONMENT ETHICS HUMAN RIGHTS PROCUREMENT Policies - Actions - Results • • • Energy Consumption & GHGs Employee Health & Safety Corruption • Supplier Environmental • • • Water Working Conditions AnticompetitivePractices Practices • • • • Biodiversity Social Dialogue ResponsibleInformation Supplier SocialPractices • • Local & Accidental Pollution Career Management Management • Materials, Chemicals, & Waste & Training • • Product Use Child Labor, Forced Labor & • Product End-of-Life Human Trafficking • • Customer Health & Safety Diversity, Discrimination & • Harassment Environmental Services & • External StakeholderHuman Advocacy Rights 6 Document Classification: EcoVadisPublic

Report on management of corruption issues > Corruption is a global issue • Multiple scandals in Brazil, Argentina, Italy, China etc. in 2018 • All industries impacted • Corruption cases have political impacts Multiple questions raised > • Do anti-corruption regulations have positive impacts? • Are corporate anti-corruption programs improving? • Are there differences related to regions, industry or company sizes? > EcoVadis data sheds new light on corporate anti-corruption efforts • About 20,000 assessments of companies’ anti-corruption management systems conducted per year • Complements other indices, such as Transparency International’s Corruption Perception Index (perception of corruption level in public sector) with data on private sector. 7 Document Classification: EcoVadisPublic

New EcoVadis Study available 8 Document Classification: EcoVadisPublic

Highlights of the EcoVadis Study on 20,000 Companies

Study data : 20,000 company assessments over 2 years Analysis of 20,000 EcoVadis assessments conducted between January 2017 and June 2018 12 industries 138 countries broken down 2 companysizes in 5 regions - Construction - SMEs (25-999 employees) - North America - Power generation & transmission - Large (1000+ employees) - Latin America & Caribbean - Finance & Insurance - Europe - ICT - China - Legal & consulting - AMEA (excl. China) - Heavy Manufacturing - Light Manufacturing - Extraction & Mining - Pharmaceutical, Chemicals & Healthcare - Real estate - Transport & Storage - Wholesale & Retail 11 Document Classification: EcoVadisConfidential

The EcoVadis approach is a management system assessment POLICIES ACTIONS RESULTS 25% 40% 35% + + 1. Policies 3. Measures 6. Reporting Anti-corruption policy, Code ofConduct Measures and actions implemented Reporting on key performance (e.g. whistleblower procedure, trainings, risk indicators (KPIs) 2. Endorsements assessments) 7. 360 ° News External endorsement of CSRinitiatives 4. Certifications Positive developments, Certifications and labels (e.g. ISO37001) condemnations, controversies 5. Coverage Level of deployment/dissemination of measures and actions 12 Document Classification: EcoVadisConfidential

Assessment: EcoVadis Rating Model Third-Party Professionals Site audits, workers voice,proprietary databases Company Management System Policies,Actions, Results Validation Scorecard CSR experts are involved Ratings, benchmarks,strengths Stakeholders throughout the assessment & improvement areas and NGOs, trade unions, process in order to ensure that resources judicial authorities, gov’t results are relevant and sanction lists, international organizations, socialmedia accurate 13 Document Classification: EcoVadisPublic

Scoring Scale Partial approach on corruption 100 OUTSTANDING - issues Innovation 85 Average Score of Ethics Theme: 84 ADVANCED Opportunity - 65 42.2 Significant room for improvement on 64 MODERATE Engaged - /100 management of corruption issues for 45 companies 44 PARTIAL Medium Risk - 25 24 High Risk INSUFFICIENT - Average score conceals disparities 00 14 Document Classification: EcoVadisConfidential

Results by Industry Best performing industries : Power generation &transmission (50.2/100) Finance & Insurance (49.9/100) Real estate(47.7/100) Worst performing industries : Wholesale & Retail (39/100) Transport & Storage (40.5/100) Light Manufacturing(41.2/100) 15 Document Classification: EcoVadisConfidential

Results by Region Best performing region: North America (45.7/100) Worst performing region: China(32.6/100) 16 Document Classification: EcoVadisConfidential

Best Practices Adoption Most common best practice : Whistleblower procedure Least common best practice : Corruption risk assessment 3rd party due diligence 17 Document Classification: EcoVadisConfidential

Correlation between average EcoVadis country scores and CPI country scores Singapore CPI country scores and EcoVadis CPI Country Score country scores not always correlated Japan (e.g. Japan or Singapore) Companies that operate in a low risk environment at home might not be well prepared when operating abroad CPI country scores are not the only indicators to consider when assessing Average EcoVadis Ethics Score by Country the risk level of companies of a specific country. 19 Document Classification: EcoVadisConfidential

Sustain 2019 - March 11-12, Paris > 40+ speakers (in 2018) • Senior execs from leading companies (GSK, Air France, LVMH, Ferrero, Toyota, Solvay … ) • Experts & NGOs (UNGC, GRI, WWF, ILO, BSR … ) > 18 sessions • Keynotes, panel discussions, lightning talks and interactive workshops > Discount code • Webinar attendees get a special discount code to attend SustaIn. Email us at Marketing@ecovadis.com Ignite Change! ecovadis.com/ecovadis-sustain-2019/ 2 Document Classification: EcoVadisPublic 0

Questions? Document Classification: EcoVadisConfidential

THANK YOU Contact: sales@ecovadis.com Ready to learn more about how EcoVadis can help you to create value and manage risk? Book 30 minutes to explore it together. Document Classification: EcoVadisPublic