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Partner towards a sustainable supply chain

To achieve a more sustainable supply chain means collaborating with partners, to assess and identify risks, to negotiate and implement sustainable solutions. A more sustainable supply chain seeks to reduce and eliminate external environmental and social costs which are often excluded in price negotiations. The goal is to encourage more responsible behavior within our supply chain, in line with our ESG Scorecard.

TRUST

SUSTAINABLE PROCUREMENT

Effective supply chain management is a major contributor to Technip Energies’ success in project execution. At Global Sourcing & Procurement, we collaborate with our suppliers to instill the culture of ESG and deliver the associated roadmap unveiled in 2022.

Two ESG targets have been set for our supply chain: Supplier qualification integrates ESG

criteria. Beyond the traditional focus on technical and financial aspects, we will consider Environmental, Social and Governance factors systematically in supply chain qualification process. Criteria, such as the assessment of GHG emission, human rights due diligence and business integrity, will form a critical part. During the course of 2022, efforts have been deployed from both internal and external perspectives. Internally, supplier ESG questionnaire and working procedure have been prepared in lockstep with a variety of internal stakeholders, ranging from Compliance to HSE. Externally, a communication campaign, aiming to have a better grasp of our supply chain’s ESG maturity, with a prime focus on the environmental aspect, was launched in Q2 2022. About 70 suppliers across the globe were contacted and with nearly half of which we had a dialogue to exchange ESG ambitions and roadmap. Such dialogues promote our commitment to ESG and

Human Rights reviews completed for

selected suppliers and subcontractors

60% progress in integrating ESG criteria into supplier and

subcontractor qualification

pave the way for the deployment of ESG qualification which is scheduled to kick start in 2023. Looking ahead, ESG criteria will be incorporated as part of the supplier qualification process in 2023.

Key suppliers monitored and audited on ESG performance. To ensure compliance, suppliers’ commitment to ESG will be monitored and verified. Dedicated process and methodology will be defined in 2023 and the implementation is expected to start in the first quarter of 2024.

BUILDING A SUSTAINABLE SUBCONTRACTING CHAIN

At Global Construction, we partner with our subcontractors in charge of the execution of the works on construction sites for our EPC projects, aiming at building a responsible and sustainable global subcontracting chain. Three ESG targets have been set up to achieve this ambition: Integrate Technip Energies ESG criteria

into our prequalification process. To ensure that we select and qualify for projects subcontractors that match our ESG requirements and vision. In 2021, we began the development of a new prequalification application (“QualifyMe” apps), integrating in the main digital questionnaire all the new defined ESG criteria, and generating automated ESG reports and scoring, to support the decision-making at an early stage (bidder list constitution). The development was completed at the end of 2022 and full-

scale deployment (go live) is scheduled in Q1 2023, as per initial plan.

Monitor and audit in the field our subcontractors’ ESG performance. A specific work process will be defined and set up in 2023, aiming at defining and monitoring key ESG KPI’s as well as auditing at job site our subcontractors during project execution lifespan. Progressive deployment and implementation of our new monitoring and auditing work process will start early 2024, reaching steady-state by Q4 2024.

Establish an ESG council to continuously improve subcontractors’ ESG performance. This ESG council aims to become the think tank for our ESG innovation and implementation. This ESG council will work for the benefit of the complete subcontractor chain, enhancing ultimately the overall ESG performance. This council will be articulated around three main pillars: collecting feedback, sharing best practice and innovation, and standardizing best ESG-proven solutions. The implementation of the ESG council is planned for 2023 with a launch in 2024.

Human rights due diligence Protecting Human Rights lays the foundations for a more sustainable supply chain and is a fundamental Value for Technip Energies. Our goal is to put in place standards and processes to identify, prevent, and address Human Rights risks. The complexities of global supply chains highlight the importance of working hand

in hand with all stakeholders involved in the sector. Our Code of Business Conduct, which reflects our commitment to acting ethically and lawfully, recognizes human rights. We do not tolerate any form of modern slavery, child, forced, indentured, or involuntary labor, regardless of where we conduct business. It is our policy that our Code of Business Conduct be shared and discussed with our clients, suppliers, and business partners to better explain our rules of conduct and reinforce our culture of accountability. We aim to develop business relationships with like-minded subcontractors, suppliers, and business partners who are guided by a similar set of principles of business conduct and aspire to only do business with counterparties who respect human rights

and uphold labor laws. The Company endeavors to ensure compliance with human rights within the scope of its operations and in accordance with the following international human rights regulations and principles: The United Nations Guiding Principles on

Business and Human Rights; The 1948 Universal Declaration of Human

Rights; and The International Labor Organization’s

Fundamental Conventions. Human rights principles at Technip Energies encompass a broad range of topics, from prohibiting any form of child labor, forced labor or modern slavery; prohibiting discrimination in all forms; creating a working environment free from any form of harassment or

2022 key figures

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Ce fichier est un document d’exécution créé sur Illustrator version 2020.

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68 . ESG Roadmap and Performance

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