OUR SUPPLY CHAIN
The performance of suppliers is essential for the success of EDPR. The company bases its relationship with suppliers on trust, collaboration and creation of shared value, and this results in a joint capacity to innovate, strengthen sustainability policy and improved quality of operations. This significantly contributes to EDPR keeping the leadership in its areas of operation and it is a factor inducing competitiveness in the markets in which it
EDPR carried out a study to characterize its Supply Chain, including the analysis of the exposure to economic, social and environmental risks. Through this study, EDPR aims to identify areas where should focus its improvement activities in order to significantly reduce its exposure to risk and optimize impacts.1
At EDPR, 89% of the external spend is concentrated on purchases of good and products (including turbines) and other supplies for energy generation, construction works and other services related to O&M.
SUSTAINABLE MANAGEMENT OF THE SUPPLY CHAIN
EDPR has defined policies, procedures and standards to ensure the several aspects that fill in with the sustainability of the supply chain, as well as the management and mitigation of environmental, social or ethical risks.
EDPR has defined a procurement policy, in order to guarantee the integration of sustainability requirements inpurchases exceeding 500.000€ (policy 0090 and 0080).The company takes into account the specific criteria stated at the procurement policy. Suppliers should adopt the 10 principles of the UN Global Compact, be aligned with EDPR Code of Ethics, be EH&S certified o equivalents, and accomplish with other technical, quality and economical/financial solvency.”
~80% (2) of the purchases at Corporate and Europe, and 66% (3) of the suppliers in North America are aligned with Global Compact criteria and EDPR’s Code of Ethics.
(1) Analysis performed by PwC using ESCHER (Efficient Supply Chain Economic and Environmental Reporting) tool, based on 2014 purchasing data. Data presented in this chapter resulting from this study is marked with an *.
(2) % is based on # of transactions. In Corporate and Europe the Procurement Team requires UN Global Compact and Code of Ethics to be signed by all suppliers directly managed.
(3) % is based on suppliers above 500k euros that were screened using labour practices criteria, human rights criteria and criteria for impacts on society.
EDPR works with mature suppliers and companies that look to meet the demanding requirements on quality, environment and prevention, as well as to comply with the economical/financial solvency requirements.
The rule “pass or fail” is applied to providers. If they do not meet the main requirements set by EDPR they will not be selected to provide services.
Contracts contain specific clauses regarding to the criteria of service quality, the adoption of the 10 principles of the UN Global Compact, adherence to the EDPR’s Code of Ethics and the requirements for health, safety and environmental management.
EDPR suppliers in reprosystem
For all suppliers considered critical, EDPR secures from the bidding to the time of providing the service (work execution or maintenance) that aspects of technical quality, economical/financial solvency, health, safety and environmental management are suitable. One of the requirements is for providers to have quality, environmental, health and safety management certificates.
MANAGEMENT AND MITIGATION OF ENVIRONMENTAL, SOCIAL OR ETHICAL RISKS
EDPR monitors Critical suppliers during their services delivery, taking into account aspects as quality, safety, health and environment. EDPR also ensures the compliance with standards, commitments and procedures of EDPR in all value chain.
The relevant aspects for EDPR in relation to sustainability in the supply chain are: Health and Safety, Respect for the Environment, Ethics, Local Development and innovation.These aspects are expressed in Procurement Manual.