Purchases and tenders for goods and services

Works, service and supply contracts (mil euros)

Enel manages relations with its suppliers in a fair, transparent and collaborative way, promoting long-term partnerships. A global strategy with the aim of maximising value creation in its various forms (security, savings, time, quality, performance, revenue, flexibility, risk reduction) and improving stakeholders’ end-to-end experience.

Enel carries out structured analyses and monitoring of the procurement process. In particular, it conducts a risk assessment on 100% of the procurement merchandise categories. The main identified risks concern economic, environmental, social and reputational aspects. 95% of Tier 1 suppliers (approximately 10,000 suppliers(1)) were considered “critical suppliers” based on their strategic nature related to the business, purchase volumes and potential economic, social and environmental impacts. The Enel Group’s relations with its suppliers undergo basic steps to ensure that the best partners are selected and that contracts are executed to the highest sustainability standards.

(1) “Tier 1” suppliers are those with active contracts as of December 31, 2019 of more than 25 thousand euros.

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In each stage of the procurement process, there are specific committees made up of representatives both of the purchasing department and Business Lines, with the task of assessing and monitoring supplier performance.

Moreover, individual country-specific units (“Contract Controls Area”) have been set up to carry out checks on the responsible management of the supply chain and assess and manage risks relating to joint and several liability.

In recent years, Enel has held several meetings with contractors on sustainability issues to exchange different ideas and approaches.