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Sustainable supply chain
Sustainable supply chain
Sustainable supply chain
We work to improve our supply chain control and supervision systems using sustainable criteria.
Aligned with the Sustainable Development Goals
SDG 12: Responsible production and consumption
We work to increase the systems of control and supervision of the supply chain according to environmental, security and human rights criteria, following the lines of action outlined in the Sustainability Plan.
Our activity in the countries and territories in which we operate is oriented toward creating value for local suppliers. In line with our commitment to them, 84.07% of the budget consumed in 2018 has been devoted to these suppliers, understood as those that have been established in Spain and Portugal.
Main results in 2018
2.746 millions of euros for procurement of materials and services.
5.210 suppliers that provided services to Endesa.
919 suppliers rated in last 4 years.
100% of the contractors in Spain and Portugal who have received Occupational Health and Safety Training.
In order to promote responsible management in the supply chain, we have an integrated procurement process, which requires suppliers to be rated following sustainability criteria (environmental, social, ethical, integrity, human rights) in addition to technical and economic criteria, before the tender process and contract formalisation. Finally, once the service has been provided, its level of compliance and performance is assessed in that presentation.
This process is even more important for the suppliers considered as critical, either for their volume of purchases, supplying products or essential services for carrying out our economic activity due to the environmental or social risk derived from our activity they perform and the potential reputation or legal impact for the company.
Integrated procurement process in Endesa
1. Business line needs plan
All requirements of each business line will be set down in the procurement plan.
2. Supplier Rating System
Evaluation of environmental, social and ethical aspects among others.
3. Purchase request management
The needs are processed by the Procurement Area to be able to start bidding.
4. Tender process
Each buyer contacts the possible suppliers and reports the technical and commercial specifications that will be required.
5. Contract formalisation
Once the bid reception and appraisal process has ended, the contract will be signed by two parties to start the contracted work.
6. Service provision
7. Supplier rating
Performance appraisal of the suppliers once the works have been performed.
Before provision of service
During provision of service
After provision of service
Process of classifying providers
The supplier qualification process contains sustainability requirements through which it is determined whether a supplier meets the requirements to work with Endesa:
- Assessment of compliance with Human Rights standards
- Assessment of compliance with Environmental Standards
- Assessment of compliance with Occupational Safety standards
Objectives of the supplier qualification system
% verifications that include aspects of sustainability in the supplier qualific action process:
Human rights
- 2016: 0%
- 2017: 49%
- 2019: 80%
- Target 2021:100%
Environment
- 2016: 15%
- 2017: 69%
- 2018: 80%
- Target 2021: 100%
Occupational Health and Safety
- 2016: 55%
- 2017: 70%
- 2018: 80%
- Target 2021: 100%
Within the process of evaluating the sustainability requirements, in-depth audits are expected to be carried out that may even include “on site” visits to verify compliance with the requirements demanded to work with Endesa.
This process is complemented through the Vendor Rating system, which is intended to monitor the performance of suppliers during the provision of service period. The score obtained in the process may serve as an incentive for future bidding processes and to maintain the contractual relations.
Through these systems (classifying suppliers and Vendor Rating), Endesa establishes a continuous dialogue with its suppliers and allows identifying opportunities for improvement, which require the implementation of action plans by the suppliers to maintain the classification, and therefore, to continue being a supplier for Endesa. These plans may incorporate actions intended to improve the environmental behaviour in the provision of service, to guarantee the strict compliance and respect for human rights or deploy safety management systems of its workers with the maximum rigour and excellence.
More information: Access to Portal One, the Enel Group’s global portal for suppliers: