Sustainable supply chain

We are working to build up our supply chain control and supervision systems in accordance with sustainable criteria.

Aligned with the Sustainable Development Goals

SDG 12: Responsible production and consumption

We are working to build up our supply chain control and supervision systems in accordance with environmental, security and human rights criteria and the action lines set out in the Sustainability Plan.

Our activity in the countries and territories in which we operate is geared towards creating value for local suppliers. In line with our commitment to them, 82% of the budget used in 2019 was earmarked for these suppliers, i.e., those in Spain and Portugal.

Main results in 2019

Purchase of

2.427

billion of materials and services

Services provided

6.115

by suppliers to Endesa

Suppliers qualified

1.118

in the last 4 years

Health and safety training

100%

contractors trained in Spain and Portugal

In order to promote responsible management in the supply chain, we have a comprehensive procurement process, which requires suppliers to be qualified on sustainability (environmental, social, ethical, integrity, human rights) and technical and economic criteria prior to the tendering process and the formalisation of the contract. Lastly, once the service has been provided, their level of compliance and performance is evaluated.

This process is even more important for the suppliers who are considered to be critical, either because of the volume of purchases made, because they supply products or services that are essential to our economic activity or because of the environmental or social risks involved in their activity and the potential reputational or legal impact on the company.

Integrated procurement process in Endesa

before provision of service

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 contracts the possible suppliers and reports the technical and comercial specifications that will be required
5. Contract formalisation

Once the bid reception and appraisal process ha ended, the contract will be signed by two parties to start the contracted work

During provision of service

6. Service provision

After provision of service

7. Supplier rating

Performance apparaisal of the suppliers one the works have benn performed

Supplier qualification process

The supplier qualification process contains sustainability requirements that determine whether a supplier meets the requirements to work with Endesa:

Evaluation of compliance with human rights regulations.
Evaluation of compliance with environmental regulations.
Evaluation of compliance with occupational safety regulations.

Objectives of the supplier approval system¹

% assessed qualified suppliers as of December 31

Environmental

2017: 69%
2018: 80%
2019: 89%
2020 a 2020: 100%

Human rights

2017: 49%
2018: 80%
2019: 89%
2020 a 2020: 100%

Occupational Health and Safety

2017: 70%
2018: 80%
2019: 89%
2020 a 2020: 100%

Accessible version

Notes

1.: Objectives established according to the new Enel Group system for verifying sustainability aspects during the supplier approval process

As part of the process of evaluating the sustainability requirements, it is planned to carry out in-depth audits, which may include site visits to verify compliance with the requirements needed to work with us.

This process is complemented by the Supplier Performance Management system, which is aimed at monitoring the performance of suppliers during the service provision period. The score obtained in this process can serve as an incentive for future tenders and to maintain contractual relationships.

For more information, see the Enel Group’s global supplier website.