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Relations with suppliers

 

Standard and sustainability criteria used by us in ours relations with our suppliers

In its relations with suppliers (2,148 contracted in 2018) Terna places primary importance on transparency and fairness, as indicated in its Code of Ethics and in compliance with Model 231 and the Integrity Pact (validated by Transparency Italia), and asks its suppliers to adopt behaviour (summarised in the document “Principles of Supplier Conduct”) that is coherent with legal and ethical principles and respects human rights and environmental protection.

Although a prevalent proportion of suppliers are Italian (93% in 2018), in other cases, the supplier is always subject to screening relative to its country of origin. In cases of countries at risk as regards respect for human rights or corruption, further targeted investigations are carried out.

For the sectors subject to qualification, in addition to stringent technical, legal and correctness requirements, in some cases specific social and environmental requirements have also been introduced, such as, for example, the ISO 14001 and OHSAS 18001 certifications. In particular, the requirement for such certifications has been introduced for the "plant cutting", "painting supports" and "HV glass insulators" sectors, with the intention to extend the requirement to all sectors relating to contracted works by 2020.

KPI Supply Chain

Obligatory qualification requirements - certifications
Description:
The certification of environmental and occupational health and safety management systems has always been an important factor in the qualification procedure. Given the importance of quality management of both of these aspects for suppliers who carry out contracted works for Terna, between 2017 and 2020 these certifications will become obligatory prerequisites for qualification
Metrics
% of suppliers in the “works” sector in possession of the environmental and occupational health and safety certifications.
Trend
Suppliers certified according to ISO 14001
2015: 67%; 2016: 74%; 2017: 83%; 2018: 91%

Suppliers certified according to OHSAS 18001
2015: 63%; 2016: 71%; 2017: 81%; 2018: 91%
Target
100%
Year/reference period
2020
Progress
The programme was launched in 2017, along with the definition of the target for 2020. In 2018, certifications for both aspects were made obligatory for two of the seven sectors.
Use of ESG criteria in tenders - tree cutting
Description:
Use of ESG criteria in tenders in the “tree cutting” sector:
  • Possession of certifications ISO 14001 and OHSAS 18001
  • EMAS registration
  • Use of low-emission vehicles and machinery
  • Use of environmentally friendly oils and compounds
Metrics
% of tender value > € 1 million with the use of ESG criteria
Trend
2015: 0.0%; 2016: 0.0%; 2017: 100%; 2018: 100%
Target
100% of tenders
Year/reference period
2017-2019
Progress
The programme was launched in 2017 and achieved a result of 100%, in line with the target.
Use of ESG criteria in tenders - soil bioengineering
Description:
Use of ESG criteria in soil bioengineering tenders (mitigation of visual impact):
  • Possession of certifications ISO 14001 / EMAS
  • Use of low-emission vehicles and machinery
  • Use of environmentally friendly oils
Metrics
% of tenders with use of ESG criteria
Trend
2015: 0.0%; 2016: 0.0%; 2017: 100%; 2018: no tenders
Target
50% of tenders
Year/reference period
2017-2019
Progress
The programme was launched in 2017 and achieved a result of 100%, in line with the target, while in 2018 no tenders were held.
Use of ESG criteria in tenders - hardware equipment
Description:
Use of ESG criteria for tenders to purchase hardware equipment:
  • Low energy consumption
Metrics
% of tenders with use of ESG criteria
Trend
2015: 0.0%; 2016: 0.0%; 2017: 100%; 2018: 50%
Target
50% of tenders
Year/reference period
2017-2019
Progress
The programme was launched in 2017 and achieved a result of 50% in 2018, in line with the target.