The supply chain is considered as an integral part of the sustainability process since the products and services purchased impact the quality of services offered and Iren Group’s reputation.
The policies adopted by the Group in managing the Covid-19 emergency had also repercussions on the management of relations with suppliers and led to the definition of a policy to support contractors in order, in particular, to recognise their direct and indirect safety costs. For contracts subject to measures for the protection of health and safety of workers in temporary or mobile construction sites (Title IV of the Italian Legislative Decree 81/2008) specific Covid-19 containment devices were identified, and their prices were defined and included in the contracts signed.
In addition, other interventions have been implemented in support of contractors, such as the granting of extensions of the contractual deadline, the non-attributability of delays in the execution of contracts and, consequently, the non-application of penalties, the recognition of price increases of materials and the payment of what was carried out before the suspension of activities (Italian Prime Ministerial Decree 22/03/2020).
Iren Group, which has always been attentive to its impact on the environment and on the communities, is also committed to monitoring and reducing its indirect environmental and social impacts, through the adoption of policies for the selection and control of the supply chain: environmental, social and safety criteria and standards are integrated into the supplier evaluation and selection system.
With the aim of pursuing a growth strategy based on the values of its Code of Ethics and committed to achieving the Sustainable Development Goals of the UN 2030 Agenda, the Group adopts a structured procurement process that is consistent with the principles of free competition, equal treatment, non-discrimination, transparency, proportionality and publicity, in the cases provided for by law, as well as inspired by compliance with regulations on human and workers’ rights, health and safety, and environmental protection, to which the utmost importance is given. The process is also based on the traceability of information, by means of suitably profiled IT systems, on the rotation of suppliers, in order to guarantee the best competitive dynamics aimed at effectiveness and efficiency, and on the segregation of duties.
The Group’s online Procurement Portal, through which public procedures and invitation to tender procedures are managed, and the Supplier Register, divided into product categories which are functional to business needs, allow for better monitoring of the supply chain, which is a strategic aspect in the management of Group’s business activities.
The Group has adopted various tools to broaden supplier involvement in the sustainable development approach
The Procurement Portal constitutes an important opportunity for economic operators interested in becoming suppliers of the Group, by increasing opportunities for involvement. To guarantee absolute transparency and disclosure concerning engagement rules, the rules for admission to the Supplier Register, the participation rules for managed negotiation events and the general conditions of use for the platform are published on the Portal. A technical assistance service for the use of the portal is also provided for economic operators who request it.
All parties involved in any capacity in the procurement process are required, each within the scope of their jurisdiction, to scrupulously comply with the provisions of the law, the Group’s Code of Ethics, Model 231 and Company procedures, particularly concerning the transparency and traceability of transactions and the confidentiality of any information they become aware.