Seeding Energies, sustainability for suppliers

Published on Thursday, 2 November 2017

“Enel shapes its own purchasing processes on pre-contractual and contractual behaviour oriented towards reciprocal loyalty, transparency and collaboration in order to have a resilient and responsible supply chain”

– Seeding Energies – Sustainability Report 2016

Sustainable Supply Chain Project

As part of this approach, in 2015 we launched the Sustainable Supply Chain Project for a resilient and responsible supply chain that includes the mitigation of impacts and is capable of adapting to external factors that involve the value chain.

There are three fundamental aspects of sustainability on which the project is focused: the environment, safety and respect for human rights. In 2016, in line with the main international standards and best practices, the requisites that suppliers must satisfy were defined. Our goal is to be working with 100% qualified suppliers by 2019.

Promoting the culture of ethics and responsibility

The suppliers are constantly monitored on issues such as, health and safety, inclusion and diversity, safeguarding privacy, social security compliance, freedom of association, potential legal issues and ethical policy.

We also request that our suppliers adhere to the principles expressed in documents such as the Code of Ethics, the Zero Tolerance of Corruption Plan, the Compliance Program and the Organizational and Management Model (relating to the requisites of the legislation D.Lgs. 231/01, which our Group was the first to enact in Italy in 2002), in addition to the ten principles of the Global Compact.

For the trade categories with a high environmental impact (29% of the categories) additional conformity to ISO 14001 is requested, while for goods that involve high risks concerning health and safety, the suppliers are evaluated after a detailed examination of the company performance on safety (e.g. OHSAS 18001 certification). In 2016, moreover, specific contract contests were launched involving evaluation criteria linked to sustainability, further confirming our constant commitment to pursuing environmental goals.

“The global system for the qualification of suppliers enables an accurate evaluation of businesses that intend to participate in the supply procedures”

– Seeding Energies – Sustainability Report 2016

Also in 2016, the new operating practices on the subject of the verification of “requisites of good repute” for suppliers were established for the whole group in order to promote a culture of respect for the rules and ethics and to consolidate the system of control through a more incisive approach to countering corruption, with a particular focus on activities considered to be more sensitive.

Furthermore, Enel promotes the adoption by suppliers of responsible forms of behaviour in terms of safety and sustainability. For this reason, in 2016 we organised events such as the “Safety Personalized Plan”, for contractors in order to share good practices concerning health and safety and initiatives to promote the SME Integrity Kit (Tools for Company Integrity) with the aim of promoting the values of propriety, loyalty and responsibility among Italian small and medium sized firms.

From a linear economy to a circular economy

The circular economy is fundamental for the promotion of sustainable reform. Enel has made this economic model its own, pursuing development to reduce the impact on the planet and its resources. Global Procurement has risen to the challenge launching the project on the “Environmental Product Declaration” (EPD). Its aim is the objective quantification of the data relating to the entire life cycle of supply in terms of consumption of water, emissions of CO2 into the atmosphere, impact on the soil, etc.

The EPD Project is part of a vast Enel programme to make sustainable construction sites a model for the activities of construction and restructuring of power plants in which every detail is shaped to safeguard the environment, promote the rational use of resources, pay specific attention to health and constantly monitor activities in terms of environmental performance. In one word, sustainability.

The entire model is characterised by a strong inter-functional interaction beginning with the Business Development phase, a moment in which, through context analysis, action plans for mitigating impacts can be developed for implementation on the construction sites. The purpose of this is to maximise the positive effects on the territory in accordance with the CSV approach, thus enabling the project to meet the requirements of the site and those of the local contexts that we are involved in.

The supply of fuels

A strategic activity for the Group, the purchase of fuels (around 4 billion euro in 2016) has an important role in ensuring the security and continuity of thermoelectric production, all our suppliers, in line with the policy of the Group, must follow the rules of the Code of Ethics and the Zero Tolerance of Corruption Plan, reference to which is included in the purchasing contracts.

For purchases from foreign markets, moreover, checks are made in order to establish that the supplier is not on a black list compiled by UN, EU and US OFAC (Office of Foreign Assets Control): these lists identify individuals and organisations connected to terrorist groups and organisations subject to economic and financial sanctions by the European Union or the United States for crimes such as terrorism or drug trafficking.