Fuel procurement

Fuel purchases (mil euros)

fuel_purchases

Suppliers of solid and liquid fuel are selected through the “Know Your Customer” process, which evaluates each party’s reputational and financial aspects and possession of the appropriate technical and commercial requirements. It is also checked that the suppliers are not on any specific “Black Lists” of the United Nations, European Union or OFAC (Office of Foreign Assets Control). These are lists that identify individuals or organisations associated with terrorist associations, organisations under EU financial sanctions, and the so-called Specially Designated Nationals (SDNs) which are subject to United States sanctions on terrorism or drug trafficking charges amongst others. To assess the sustainability aspects of coal sources, an internal process has been established to prove that the requirements in line with the Group’s standards on occupational health and safety, environment and human rights have been fulfilled. Purchase contracts agreed with each supplier are subject to the principles adopted by the Group with regard to the Code of Ethics and Zero Tolerance of Corruption Plan, with which suppliers must comply. Enel reserves the right to terminate contracts in severe cases of non-compliance with said principles. Lastly, to mitigate risks arising from shipping fuels, Enel has adopted a tool to vet the carriers it uses. Vetting is a recognised industry standard for oil transportation; but for a few years now, Enel and an increasing number of operators have already begun to apply this method also for transporting bulk cargoes.

Together with major European electric utilities, Enel is actively engaged in Bettercoal – a global initiative to promote the continuous improvement of corporate responsibility in the international coal industry. Bettercoal has released a code of conduct based on existing and agreed standards of social responsibility in the mining sector.

Read More