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.

The aim of our activity in the countries and regions where we operate is to create value for local suppliers. In 2020, we collaborated with 4,867 suppliers, including the total number of suppliers subject to delegated purchases. The value of purchases from suppliers was down by 10% compared with 2019, amounting to Euro 2,176 million.

Main results in 2020

Number of suppliers

4.867

of Endesa in Spain and Portugal

Value of purchases from suppliers

2.176

(million euros) in Spain and Portugal

Purchases made from qualified suppliers

% volume of purchases

Raitings made

1.326

934 new suppliers qualified

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.

Quantitative KPIs and targets¹

% assessed qualified suppliers as of December 31

Environmental

2018: 80%
2019: 89%
2020: 100%
2021 a 2023: 100%

Human rights

2018: 80%
2019: 89%
2020: 100%
2021 a 2023: 100%

Occupational Health and Safety

2018: 80%
2019: 89%
2020: 100%
2021 a 2023: 100%

Accessible version

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 behavior 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.

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

Notes

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.