Sustainable supply chain

We support our supply chain throughout the purchasing process, involving it in meeting the Sustainability Objectives to which Endesa is committed.

Aligned with the Sustainable Development Goals

SDG 12: Responsible production and consumption

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Raising awareness of the commitment to sustainability among all our suppliers is a responsibility that Endesa undertakes during the comprehensive purchasing process, as established in the 2023-2025 Sustainability Plan. A sustainable supply chain is essential to achieving the decarbonisation and electrification objectives.

Throughout the purchasing process there are different milestones in which the supplier certifies its level of commitment to sustainability.

Purchasing process

Pre-contract

1. Procurement needs plan. All needs of each business line are included in the Procurement Plan.

2. Supplier Qualification Process. Assessment of compliance with technical, economic, financial, legal, ethical and honorability requirements in order to ensure an adequate quality and reliability level in case of the contract awarding.

Milestone sustainability! The fllowing aspects are evaluated: enviromental, human rights, occupational health and safety.

3. Need / purchase request management. The business line´s needs reach the Procurement Unit, from where the acquisition process begins.

4. Awarding Process. Each buyer contacts the invited suppliers and communicates the technical and commercial specifications.

Milestone sustainability! Sustainability criteria related to the object of the tender are requested.

5. Contract formalization. Once the award is concluded, the contract is signed so that it can be executed.

Milestone sustainability! The supplier´s commitment to sustainability requirements ir verified and the Compliance Plan is designed.

During the execution of the ccontract and at the end of it

6. Supplier Performance Evaluation. Through the Suppliers Performance Management system, the suppliers´s performance is monitores during and at the end of the contract.

Milestone sustainability! Sustainability commiment follow-up.

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One of the main milestones in the purchasing process is the Qualification of Suppliers, during which compliance with technical, economic, financial, legal, ethical and good reputation requirements is assessed in order to guarantee an appropriate level of quality and reliability in case a contract is awarded.

During this process the supplier's compliance with regard to the following aspects of Sustainability is also verified: Environmental, human rights and occupational health and safety. Endesa believes that the actions of suppliers, in addition to guaranteeing the required quality standards, should be accompanied by a commitment to adopt best practices in the above-mentioned aspects.

100% of supplier qualification processes include occupational health and safety, human rights and environmental requirements.

Endesa also requests suppliers to comply with requirements related to the SDGs in its bidding processes, including a carbon footprint certificate and compliance with certain social criteria (recruiting local staff, promoting women's employment, recruiting people at risk of social exclusion, recruiting disabled people). The sustainability requirements to which the supplier is committed during the bidding process are included in the contract.

Assessment process

Within the process of assessing sustainability requirements, it is planned to conduct in-depth audits which may include "on-site" visits to verify compliance with the requirements demanded to work with Endesa.

Endesa also has a system to monitor the performance of its suppliers (called Supplier Performance Management) during the purchasing process and the execution of the contract in order to verify compliance with the established requirements.

Main results in 2022

In 2022, the total volume contracted was €4,139 million, 28% more than in 2021.

Number of suppliers

1,971

Value of purchases from suppliers

4,139

(million euros)

Purchases made from qualified suppliers

% volume of purchases

Raitings made

2,102

1,566 new suppliers qualified

Commitment to local suppliers

Endesa's activity in the countries and territories in which it operates aims to create value for local suppliers, having contracted 81% of the total amount (€3,345 million) with this group in 2022.