Relations with suppliers

We adopt a structured and responsible approach to managing relationships with suppliers, integrating ESG criteria into all stages of the procurement process: qualification, tendering, contract management and performance evaluation. The selection of suppliers is carried out through a rigorous qualification process that checks their adherence to our corporate values and compliance with standards in health, safety, human rights, anti-corruption and environmental protection. We also commit to supporting suppliers in the continuous improvement of their ESG profile, through awareness-raising initiatives, training, and risk monitoring. Their involvement is further strengthened by the inclusion of contractual clauses aimed at promoting sustainable practices and integrating sustainability criteria into the evaluation of their performance.
 
Over time, we have built solid and lasting relationships with our suppliers, capable of generating value not only in the short term but also in the long term. This approach ensures stability in the procurement process and stimulates growth for the company and the local territory. In particular, we pay great attention to local suppliers: 97% of spending is directed to national suppliers, with whom we establish long-term collaborations, also through multi-year contracts, in full compliance with the 231 Model and the Code of Ethics, thereby contributing to the economic development of the territories in which we operate.

In the supplier qualification process, we request information across all ESG areas, with a particular focus on:
 

• Adoption of sustainability goals and related reporting;
   
  
• Adoption of policies on Diversity & Inclusion and human rights;
   
  
• Evaluation of their suppliers based on sustainability criteria, calculation of GHG emissions, use of renewable energy, commitment to research and innovation and involvement in sustainability projects partnerships.
   
  

We carry out this assessment through two different types of evaluations, each with varying levels of detail. Specifically, through the specialized platform of a partner, we administer a detailed questionnaire with over thirty questions to strategic suppliers. At the end of the assessment, we provide the supplier with a summary report of their ESG profile, along with the average industry score. The results of the ESG evaluation contribute to the supplier’s qualification or renewal assessment, alongside technical, HSEQ, financial and integrity & reputation evaluations.
 
We adopted a screening procedure and ESG risk assessment for our suppliers, which includes considerations related to country risk, company size and industry sector. With the aim of guiding the supplier through a process of improvement, we are committed to ensuring that the assessment is also an opportunity to raise the supplier’s awareness. For this reason, following the assessment, the supplier receives a summary report of their sustainability profile, which provides them with a benchmark of their ESG performance against industry peer, as well as references to the relevant thematic modules — identified as areas for improvement — available on the Sustainable Procurement Academy. 
Over the course of the year, training workshops were conducted for our employees involved in procurement, focusing on the company’s ESG strategy, sustainability objectives, and the educational tools made available to SME suppliers (such as the Sustainable Procurement Academy).

We rely on values of transparency and respect in our relationship with suppliers, with policies and procedures to ensure compliance with industry standards and fair practices throughout the value chain. We are committed to applying strict administrative procedures for supplier payments, avoiding delays that could compromise financial stability, especially for SMEs.