04. SUSTAINABLE COMMITMENTS

Rexel's teams contribute to building a sustainable world. Inscribed in the Group's DNA, their convictions are implemented each day, inspiring Rexel's strategy and approach to innovation, as well as how it operates in its various markets. At the heart of the electrical industry's value chain, the Group is committed to controlling its environmental footprint, and raising its customers' awareness of the issues involved in the energy transition. Corporate responsibility thus lies at the very heart of Rexel's value creation approach.

Bertrand de Clermont Tonnerre, Directeur du développement durable de Rexel Bertrand de Clermont Tonnerre,
Sustainable Development Director at Rexel

“The health crisis strengthened our conviction that the evolution toward a constantly more sustainable and thus more resilient business model will be essential to all long-term value creation goals. Energy management by itself can account for 40% of the reduction in greenhouse gas emissions necessary to be in compliance with the Paris Climate Accords. And considering Rexel's prominent position at the heart of the electricity value chain, it is our responsibility to take action and to mobilize our stakeholders to build a sustainable future together.”

Ambitious climate objectives

As a signatory of the UN Global Compact since 2011, Rexel is committed to respecting and promoting its principles of complying with human rights and work standards, preserving the environment, and fighting corruption throughout the value chain.
Acting with ethics and integrity in every situation, recognizing and developing the skills of its 24,000 employees, building trust-based relationships with all of its stakeholders, reducing its environmental footprint, promoting energy management, and fighting fuel poverty thanks to its Foundation are the priority actions of the Group’s responsibility roadmap.
As an actor in the energy transition, Rexel has set ambitious environmental objectives aligned with a 2030 goal that goes well below the +2°C of the Paris Climate Accords and has been validated by the Science-Based Target initiative (SBTi).

A sustainability-linked financing

On April 27, 2021, in order to strengthen its commitment to reducing its greenhouse gas (GHG) emissions, Rexel successfully placed €300 million of its Sustainability-Linked Bonds by tying its financing conditions to meeting its direct and indirect emissions-reduction targets.
Rexel recently obtained the most favorable interest rate in its history of 2.125%, which will be increased by 25 bps as of June 2024 should the Group miss its interim environmental targets by the end of 2023. The relevance and ambition of these two targets have been rated as ‘advanced’ by independent CSR expert Vigeo Eiris. They are:
– a 23% reduction in GHG emissions related to the consumption of products sold per euro of sales (scope 3), by 2023 as compared to 2016.
– a 23.7% reduction in GHG emissions related to the energy consumption of its operations (scope 1 and 2), by 2023 as compared to 2016.
The success of this sustainable bond issuance, which is testament to investor confidence in Rexel’s commitments and its determination to continuously improve its environmental performance, led the Group to place an additional €100 million bonds on May 7, 2021.

2030 Commitments

These latest sustainability-linked bond placements are part of Rexel’s long-term climate commitment strategy. Moreover, the Group’s 2030 objectives have been established in line with the Paris Agreement on climate change, and having been approved by the Science Based Target initiative (SBTi) aim to help limit global warming to less than +2°C by the end of the century.

In particular, the Group is committed to reducing:
– by 35% the greenhouse gas emissions (GHG) related to the energy consumption of its operations (scopes 1 and 2) by 2030, as compared to 2016.
– by 45% per euro of sales, the greenhouse gas emissions (GHG) related to the use of its products (scope 3) by 2030, as compared to 2016.

The four pillars of Rexel's
sustainable development strategy

  • INVOLVING AND SUPPORTING EMPLOYEES

    Attract and retain talents and promote equal opportunity. Stimulate employee engagement and employability. Accelerate diversity and inclusion.

  • IMPROVING ENVIRONMENTAL PERFORMANCE

    Commit to the environment. Set an operational example. Support sustainable resource management.

  • PROMOTING RESPONSIBLE PRACTICES IN THE VALUE CHAIN

    Develop trust-based relationships from suppliers to customers. Create value for customers. Foster energy progress.

  • Top 100
    Rexel is 1st in its sector and 11th worldwide in the “Global 100” Corporate Knights ranking of the most sustainable companies.
  • An organized environmental approach

    Rexel relies on its Environmental Charter to support the operational implementation of its strategy. Regularly updated to include the company’s latest changes, it has been deployed throughout the subsidiaries. It presents the Group’s three environmental commitments: improve the environmental performance of its buildings, reduce the environmental footprint of its operations, and develop and promote energy-efficient solutions.

    Rexel is pursuing and amplifying its sustainable development commitments. “The Group intends to reduce the direct emissions of its activities, but also to enable its best practices to permeate the industry. The aim is thus to have a positive impact on the 600 million tons of CO2 emissions across the entire value chain” says Bertrand de Clermont Tonnerre, Sustainable Development Director of Rexel.

    In parallel, Rexel continues to implement its Environmental Management System (EMS), which was created in 2013 and defines and documents the procedures that aim to control the environmental impact of its activities and to manage its improvement plans.

    Several subsidiaries have also undertaken the ISO 14001 certification process, which attests to their commitment to continuously improve their environmental approach.

    Furthermore, some of them have also committed to the implementation of energy management systems that meet the ISO 50001 standard. These subsidiaries represent 15% of all of the Group’s sites and 8% of the Group’s on-site energy consumption. Since 2018, Austria and the UK have implemented a very well-structured approach by obtaining four certifications (ISO 14001, ISO 9001, ISO 50001, and OHSAS 18001).

Reporting, a tool to manage environmental policy

Rexel relies on a network of 74 environmental correspondents divided between its subsidiaries. These experts are tasked with managing environmental reporting (see Statement of Extra-Financial Performance).
Rexel wants its environmental reporting to meet the following requirements: cohesiveness (ensure that the data are comparable and established according to standard rules), exhaustiveness and exactitude (the data reported accurately reflect reality), materiality (the data take into account the most important issues), transparency and verifiability (the data sources and methods of calculation and estimation are available and easy to access).

Employees trained in environmental issues

The Sustainable Development department raises awareness among all Rexel employees about environmental and societal issues. A comprehensive e-learning module on energy efficiency is available on the Rexel Academy training platform. It presents, according to three levels of expertise, the main issues and principles of sustainable development with videos, practical cases and quizzes. The aim of this program is to help employees improve their knowledge, strengthen their expertise, and increase their confidence when speaking about energy efficiency.
In 2020, 10,775 employees received training in environmental issues and 8,325 in energy efficiency and/or renewable energy solutions.

Optimizing sites’ energy consumption

As part of a continual improvement approach to the energy performance of its sites, Rexel precisely measures and manages their consumption. This includes the generalization of LED lighting, as well as the modernization of heating, ventilation, and air conditioning systems.
The Group has renovated the lighting equipment in its offices, buildings and logistics centers in Germany, Italy, Portugal and the Netherlands, in order to install low-energy technologies.
The Tournefeuille distribution center in France (11,000 square meters) was retrofitted with motion detectors in 2020: the number of lighting fixtures was reduced by 11% and more energy-efficient ones were installed. This intelligent lighting adapts to the activity of the logistics center, regulates itself autonomously, requires no maintenance and is programmed according to usage.
Thanks to the integrated lighting management system, the number of lighting hours has been reduced by 40%. All of these measures have resulted in a reduction in energy consumption estimated at 312,487 kWh per year, or a saving of 22 tCO2, with the added bonus of a return on investment before 3 years.
The new lighting equipment will not only reduce Rexel’s energy consumption, but also considerably improve the visual comfort of its employees and customers.
Another example is the regional distribution center Cestas 2 in Gironde (France), a BREEAM (Building Research Establishment Environmental Assessment Method) certified building, guaranteeing very low energy consumption and limited impact on the environment, thanks especially to the installation of 729 solar panels enabling a 20% reduction of the energy bill. Cestas 2 also meets ICPE regulations (Installation Classified for the Protection of the Environment) regulations, thus reflecting the Group’s commitment to sustainable and responsible energy consumption practices.

Reducing the carbon footprint of transports

The Group’s activities involve continuously optimizing logistics, from suppliers to customers. The Group relies on its logistics centers and on a flexible organization that enables Rexel to optimize its procurement according to its customers’ needs. Furthermore, Rexel’s commercial activity requires the presence of its salespeople among its customers on a daily basis, at the heart of its territories. Rexel thus effectively reduces the environmental impact of its transports by streamlining its organization and its processes.
For sales travel, most subsidiaries have a fleet of vehicles, either their own or long-term leased. Sustainable management of the fleet makes it possible to limit fuel consumption and its associated emissions.
For many years, Rexel’s indirect purchasing department has deployed framework agreements to streamline the fleet of company vehicles (cars and light utility) and improve its environmental performance. Thanks to partnerships signed with long-term leasing companies and certain automobile manufacturers, the Group accompanies its subsidiaries in the implementation of this policy and encourages them to monitor performance indicators (fuel consumption, CO2 emission rates per kilometer).

Reducing waste

Around 50 million tons of electrical and electronics equipment are discarded every year across the globe (according to the estimation of the United Nations Environment Program), with only 10% reaching a recycling facility. Reducing the waste generated in its branches or in its logistics centers to the bare minimum and proposing solutions to its customers for the collection and recycling of products are Rexel’s two priorities in terms of sustainable resource management.
Within the framework of its commitment to the circular economy, Rexel seeks to reduce the quantity of waste generated by its activities and to facilitate their recovery and recycling. The Group encourages all of its branches, logistics centers, and subsidiary headquarters, particularly through its Environmental Charter, to:
– implement a selective sorting system for paper, cardboard, plastic, and wood waste for recycling or reuse.
– ensure that specific waste (like batteries, IT and electrical equipment) is taken in for processing and recycling in an environmentally friendly way.
– take part in gathering and recovering certain specific customer waste, such as electrical and electronics equipment or “WEEE.”

A “green” strategy
throughout the value chain

  • ACT RESPONSIBLY IN THE GROUP'S OPERATIONS

    Be a leader in terms of reducing the CO2 emissions of Rexel's operations:
    - fleet of hybrid and electric vehicles,
    - reduction of energy consumption in the Group's buildings,
    - reduction of non-recyclable waste.

  • BE AN ADVISER TO REXEL'S CUSTOMERS

    Offer the right value proposal by promoting a green offering.
    Help the Group's customers reduce their CO2 emissions.

  • BE AN INFLUENCER IN THE GROUP'S PARTNERSHIPS

    Collaborate with Rexel's suppliers to create and promote green labels via a reciprocal commitment.

Mobilizing suppliers and partners

The Group requires its suppliers, at the signature of their contracts, to comply with its standards in terms of rejecting forced and child labor, wages and advantages, health and safety, non-discrimination, respect and dignity, freedom of speech and of association, and the environment. In accordance with Rexel’s Ethics Guide, its suppliers commit to respecting these principles and especially the rules of the International Labor Organization.
To strengthen the trust-based relationships established between Rexel and its partners, a Sustainable Supplier Charter was produced in 2020. It formalizes the commitments that Rexel expects from its suppliers, service providers, and sub-contractors in terms of ethics, respecting human rights, protecting workers’ rights, respecting the environment, and complying with all applicable laws and regulations. It also reminds them of Rexel’s commitments to them.
This Charter was deployed in 2021 to the suppliers and employees concerned.

  • 350
    suppliers, i.e. 77% of the Group's direct purchases, have received an evaluation questionnaire via the EcoVadis platform since the beginning of the process, to identify their level of engagement in this approach
  • EcoVadis, a CSR supplier evaluation platform

    Since 2015, Rexel has used a CSR performance assessment process among its suppliers in order to anticipate and manage the risks involved in their activities. The process is based on management and monitoring procedures throughout the value chain. Since 2017, this process has been a key component of Rexel’s response to the French duty of vigilance law.
    The Group’s approach relies on the use of a shared platform that enables the collection of the social, ethical, and environmental data of its primary suppliers. The initiative makes it possible to counter the risks involved in respecting human rights and basic freedoms, work conditions, and the environment.
    Every supplier receives an individualized response from Rexel’s teams following the evaluation. If necessary, corrective and improvement actions can be established.
    This exacting evaluation tool makes it possible to improve the transparency and traceability of Rexel’s value chain and to limit risks. Data collection makes it possible to compare performances via common indicators and to share the results with all of the stakeholders. The goal is to initiate a collective momentum of continual improvement and to promote a relationship model based on trust and integrity.

PEP, a standardised management tool

The Product Environmental Profile (PEP) is an environmental standard created by suppliers for their electric, electronic and HVAC (heating, ventilation and air-conditioning) products. Based on reliable, quantified, multi-criteria data (impact on climate change, total energy consumption, impact on the depletion of natural resources and freshwater use), Rexel teams establish the environmental impact of the distribution, installation and use of each product. Rexel encourages its suppliers to create PEPs so that it can inform customers and guide them to the most environmentally efficient products.

Supporting customers and raising their awareness

Rexel raises its electrician customers’ awareness of the issues related to the energy transition and offers them solutions, eco-efficient services, and training to help them reduce their emissions as well as those of end-users.
The Group and its teams provide them with information about the efficiency of the solutions on a daily basis in addition to developing tools that make it possible to calculate the CO2 emissions of the products used on a worksite, a building, a project, etc.
To limit the environmental impact of its customers’ major projects, Rexel offers comprehensive provision management services in order to consolidate deliveries in advance, optimize transport, and reduce the associated impact.
Furthermore, while only 10% of the 50 million tons of electrical and electronic equipment discarded every year around the world enters a recycling facility, Rexel provides its customers with product collection and recycling solutions.

REXEL joins Valobat

The Group is one of the 26 product and material manufacturing companies to have participated in founding the future eco-organization Valobat, which aims to advance the recycling of construction waste. To meet this challenge, Valobat will offer construction companies a multi-material recovery solution for waste collected separately at nearby collection points.
The eco-organization will also develop recycling facilities.

Selecting responsible and eco-efficient products

In close collaboration with its suppliers, Rexel works to reduce its environmental impact by gathering environmental information on products. Rexel thus launched a responsible offering that allows its customers to obtain a product sustainability score.
Rexel offers a wide range of eco-efficient products for the construction, renovation, and maintenance of buildings, as well as energy consumption management tools.
Furthermore, the Group helps installers to promote energy savings by providing them with energy audit tools and digital applications that facilitate the implementation of energy-efficient solutions. The Group also accompanies them in the development of more efficient energy solutions by calculating the environmental impact of products bought by each customer (e.g. the collaboration with Elektroskandia Norge, with the calculation of the environmental impact of the cable installation).
Rexel is also present on the electric vehicle market and offers full packages, sized according to the number of vehicles to charge. Complementary user services enrich these offerings, such as geolocation, reserving a charging station, or paying online.

The extra-financial performance of the Group

The Group’s CSR performance is widely recognized, as shown by its presence in multiple CSR indices and its voluntary commitments: