Sustainable business is an essential requirement in meeting future challenges. In keeping with this vision, Enel Procurement today means a sustainable supply chain, circular economy, digital innovation and creating value that's shared with suppliers. All of this is in line with the sustainable development goals of the UN, which Enel has adopted.
From the very first phase of Supplier Qualification, Enel carefully selects companies for collaboration, by assessing aspects related to health and safety, the environment, human rights and ethics, as well as technical, economic, financial and legal ones and good repute.
With respect to tendering procedures, the Group has defined a series of reward factors – “sustainability K factors” – connected to social, environmental and health and safety aspects and circularity. This includes, for example, carbon footprint calculation and corresponding mitigation actions, the use of low-emission vehicles, a commitment to developing projects that benefit society and employing personnel who are unemployed or making use of a redundancy fund or benefits or young first-time workers and taking part in projects that reuse products or parts of them.
The circular economy is a business model that can generate competitiveness, combining innovation and sustainability. A Circular Procurement strategy has as its target the purchase of goods, works or services that reduces impact on the environment and the production of waste over their life cycle.
The “Circular Economy Initiative for Suppliers Engagement” project
This initiative to promote supplier engagement is based on the Environmental Product Declaration (EPD) and its target is to objectively quantify, certify and communicate impact over the whole supply life cycle (water consumption, CO2 emissions, impact on soil, etc.). It also involves the use of an IT instrument to aggregate the data and define the reference parameters for the sector and the improvement targets.
The project allows Enel to measure the impact of its own business on the world's resources and then mitigate it, and it allows suppliers to be involved in activity that checks the eco-efficiency of the production cycle and have references for establishing improvement actions.
Health and safety in the procurement process
Every phase of the procurement process is characterised by attention to people's health and safety. This is demonstrated by a series of tools, such as mapping of merchandise categories by risk class and the adoption of qualification requirements which in high-risk cases involve: a visit to the company's production site; the definition of a single contractual document (“HSE TERMS”) governing the supplier's obligations with respect to these aspects; the development of tools for collaboration (e.g. Safety Support) that enable the supplier to identify areas of improvement and define an action plan to be followed jointly.
Also within the Supplier Performance Management system, targeted at monitoring supplier performance, the safety index has a significant effect on appraisals of the company's global performance.
There is also a specific Group policy (the Stop Work Policy), according to which any hazardous situation or unsafe behaviour must be stopped and reported in a timely fashion.