Suppliers as drivers for development

SUPPLIERS BY GEOGRAPHICAL AREA (%)

SUPPLIERS BY GEOGRAPHICAL AREA

AVERAGE VETTING PERIOD (days)

AVERAGE VETTING PERIOD (days)

SUPPLIES SUBJECT TO VETTING OUT OF THE TOTAL VALUE OF SUPPLIES (%)

SUPPLIES SUBJECT TO VETTING OUT OF THE TOTAL VALUE OF SUPPLIES

Edison has activated a vast and widespread network of suppliers with which it has, over time, forged transparent relationships based on mutual trust that look to the future by focusing on investments that can create long-term value.

Edison works with suppliers that guarantee the highest health and safety standards, respect for human rights, the fight against corruption and respect for the environment.

They are paid fairly for their work and on time, in exchange for a commitment to ever higher quality and efficiency.

In 2016, Edison reduced the total value of orders by approximately 3.8% on the previous year: this was mainly due to the Group’s reduction in operating costs.

All suppliers are vetted: suppliers and subcontractors, when they apply, commit to complying with the principles and values that are unwaiverable for Edison, reading and accepting the 231 Model, the code of ethics and the human rights policy (which they must sign as a binding condition to receive an order).

The percentage of purchases from qualified suppliers is around 93%, slightly up on the 2015 percentage. Tenders were held on the EDF Group’s tender portal, which also helps reinforce cooperation and the exchange of information and operating methods with other EDF Group companies.

In addition to the Sustainable Supply Chain Self-Assessment Platform, which went live in 2014 as part of the “TenP” (Ten Principles) project promoted by Fondazione Global Compact Italia to spread suppliers’ awareness of human rights, labour rights, the environment and the fight against corruption, projects were planned to increase the collection of information for the purposes of assessing suppliers’ sustainability policies during the vetting process, which in 2017 saw the updating of the supplier vetting portal.

Edison believes it is crucial to continue training its personnel working in procurement to best develop their specific expertise. Training has provided not only a deeper knowledge of the market, but also led to the increased integration of sustainability issues in the management of the supply chain.

In 2016, the financial monitoring process for suppliers was updated, with the introduction of certain anti-money laundering indicators.

With the Business Integrity Forum of Transparency International Italia, of which Edison is a member, the SME Integrity Kit was created to highlight the integrity, loyalty and responsibility of our suppliers and partners.

The kit, which includes the general charter of ethics, the whistleblowing system and integrity agreements, will be offered to small and medium supplier companies at no charge, in order to help them increase their contribution to integrity and transparency, with the aim of improving the private sector’s reputation throughout the country, fostering a spirit of emulation and shared use of good practices.