Louis Vuitton 2015 Annual Report Download - page 37

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LVMH 2015
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Responsible partnerships
GROUP COMMITMENTS AND ORGANIZATION
In 2008, the Group established a Supplier Code of Conduct
that states its requirements in matters of social responsibility,
the environment, and the fi ght against corruption. The Supplier
Code of Conduct has been circulated to the Maisons of the
LVMH Group, and any collaboration with a partner means that
it must comply with all the ethical principles in the Code.
In 2012, the Group implemented a decision-making process
to identify suppliers that might need to undergo a social and
environmental audit. The methodology used enables each
Maison to identify its at-risk suppliers on the basis of several
criteria including the purchasing category, the degree of
fi nancial dependency for each supplier, the strategic impor-
tance of the products, and the supplier’s geographic location.
For example, shortly after joining LVMH in 2014, Loro Piana
completed its supplier risk assessment matrix using this
methodology proposed by the Group.
EXTERNAL AND INTERNAL SUPPORT ACTIONS
Driven by a desire to work hand in hand with our suppliers,
we assist them in implementing and complying with best
practices for the environment, labor and corporate citizenship,
while also increasing their awareness of issues of sustainable
development and responsible purchasing. A Supplier Day
was held in China in July 2015 and was attended by repre-
sentatives of the main Maisons as well as their suppliers with
production workshops in that country. The goals were to
present the responsible purchasing standards of LVMH and
its Maisons, hear feedback from suppliers who had achieved
improvements by working more closely with our Maisons,
and hold workshops so that participants could share best
practices.
Moreover, every year since 2005, an internal Suppliers
Sustainability Meeting has been held with members of the
Procurement, Sustainable Development, Legal and Internal
Control departments of the various Maisons.
AUDITING AND MONITORING OUR SUPPLIERS
In order to improve the performance of its supply chain, LVMH
also decided in 2014 to join Sedex, a non-profit organization
that promotes ethical and responsible improvements in supply
chain practices.
A total of 1,027 social and/or environmental audits were per-
formed on 877 suppliers in 2015. More than 90% of these audits
were managed by third-party specialists, and 561 were related
exclusively to social criteria. 42% of these audits showed
results in line with the Group’s standards.
As part of their quest for ongoing improvement in 2016, our
Maisons will continue to conduct supplier audits and follow
up on action plans, while developing their collaboration with
Sedex.
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“EXCELLENCE FOR LORO PIANA MEANS ALSO RESPECT,
AN ESSENTIAL INGREDIENT TO QUALITY. RESPECT FOR
THE WELL-BEING OF THE ANIMALS TOGETHER WITH LIFE
CONDITIONS OF THE LOCAL POPULATIONS. OUR MORE
THAN THIRTY YEAR EFFORTS IN PERU AND NOW ARGENTINA
TO SAFEGUARD VICUÑAS AND OUR COMMITMENT IN CHINA
AND MONGOLIA TO PROMOTE A SELECTIVE BREEDING
OF GOATS TO AVOID OVER POPULATION AND CONSEQUENT
DESERTIFICATION OF THOSE AREAS ARE ONLY TWO EXAMPLES
OF OUR APPROACH.”
Emanuela Carletti,
Purchasing Department Manager, Loro Piana