Vilmorin & Cie - Annual report 2017-2018

ANNUAL REPORT Vilmorin & Cie 133 2017-2018 4 4.4.2. Making stakeholder dialogue a source of wealth Dialogue with stakeholders is a fundamental component of the Group’s CSR approach. It allows us to progress in understanding the challenges and motivations of others. Even difficult topics can be addressed in a direct and transparent way. The objective is to promote innovation and creativity, mobilize employees, strengthen the Company's image and reputation, and prevent and manage risks. 4.4.2.1. Partnerships, participations and joint ventures Over the years, Vilmorin & Cie has established numerous scientific collaborations with public and private research laboratories all over the world. These partnerships are set out in detail in Part 1, on page 40. In addition to these partnerships, equity investments are sometimes made or joint ventures formed. The Franco-German joint venture Genective was created with the seed company KWS to develop traits* of GM* corn. In vegetable seeds, Vilmorin & Cie holds a stake in Keygene (Netherlands) in the field of plant biotechnology*. Vilmorin & Cie has also created joint ventures and acquired minority but significant interests throughout the world (AgReliant in North America, Seed Co in Africa, Hengji Limagrain Seeds in China, AGT in Australia, etc.) that open up new avenues for breeding*, production and marketing of field seeds. 4.4.2.2. Involvement in discussions related to the challenges faced by seed companies Vilmorin & Cie is involved interprofessionally and with professional representative bodies at national level – with the GNIS (National Interprofessional Group on Seeds and Seedlings) and the UFS (French seed association for seed companies and plant breeders) – and at European level – through the ESA (European Seed Association) – as well as internationally through the ISF (International Seed Federation) . In this capacity, it participates actively in agricultural debates, particularly in relation to seed production: protecting living organisms, access to genetic resources* and the use of plant biotechnologies* in the field of scientific research. Vilmorin & Cie has been, and continues to be, at the forefront of discussions related to intellectual property in plant matters. It has been a tireless advocate in debates related to the respective use of Plant Breeders’ Rights and patents for a fair balance between the two systems of protection for plant innovations. Vilmorin & Cie defends a balance that protects intellectual property, without prohibiting the use of innovation as a source of other creations. In terms of plants, creating new varieties cannot be achieved without access to existing plants. This commitment can be illustrated by two major legal decisions for which Vilmorin & Cie's contributions were decisive: the recognition of the breeder's exemption in European patent law and the non- patentability of essentially biological processes. Many initiatives have also been undertaken by the Business Units. Most of them have developed constructive dialogue with stakeholders in their area of operation, for example on water management. In addition, they organize visits and meetings, particularly with farmer multipliers*, to seek shared avenues for improvement together. In the Netherlands, the Business Unit Hazera has engaged with the SkyLark Foundation . This foundation was created in 2006 in the Netherlands by farmers and the agri-food industry with the goal of supporting and promoting the development of sustainable agriculture. Soil fertility and preservation are viewed as the foundation for the development of sustainable agriculture. Eight other criteria are also taken into consideration: biodiversity, water, energy, crop protection, the local economy, human capital, product value, and nutrients. The Foundation is furthering knowledge and encourages training and exchanging best practices for the benefit of farmers. Hazera joined the SkyLark Foundation as a technical partner in growing onions. This enables Hazera's specialized teams to participate in the meetings related to the sustainable production of onions, and more generally, in all meetings dealing with sustainable agriculture. 4.4.2.3. A responsible purchasing policy to consolidate relations with suppliers Convinced that supplier relations are an important lever for creating value, the Group’s Purchasing department has been developing its processes since 2014 to integrate socio-environmental criteria based on its own sustainable purchasing standards. In this context, in 2016, the Group’s buyers signed the “Responsible Supplier Relations” charter and were trained in the practice of responsible purchasing by AFNOR . The department has also set up a Request For Information (RFI) system for all its active suppliers in order to better understand them and identify any inherent risks. The RFI provides information on the organization, strategy, financial data, quality policy, risk management, CSR, progress plans, supply chain organization and motivation to develop partnerships with the Group. The RFI also identifies innovations and evolutions in supplier production capacity that reduce costs. In a contract, the supplier commits to submitting a progress plan within 6 months of the contract's start. An annual review of progress plans is presented to the Steering Committee. The results for 2017-2018 show that out of 173 active suppliers, 77.5% (74.1% in 2016-2017) are engaged in a CSR approach and 68.2% (62.7% in 2016-2017) have ISO certification (14001, 9001, etc.). In fiscal year 2017-2018, three supplier audits were carried out to make sure the best practices of the supply chain were applied. In order to evaluate the relevance of the offers in terms of sustainable development, a first analysis of the suppliers’ CSR policy is used to classify them according to five levels of 4.4. Building new patterns of relationship and creating value Social, environmental and societal INFORMATION