We are a global operator of essential infrastructure
Responsible supply chain management
Our suppliers constitute a key stakeholder group for the Company and, therefore, we believe it is necessary to carry out a sustainable management of our supply chain, promoting responsible practices and applying sustainability criteria in all supply chain processes.
Our commitment to sustainability is reflected in our Sustainability Policy and as one of the priorities defined in our 2030 Sustainability Commitment. Said commitment has been designed taking into account that the priorities and actions of our company contribute significantly to the achievement of the Sustainable Development Goals.
Our responsible supply chain management model
The Group has a responsible supply chain management model that is managed based on the principles of non-discrimination, mutual recognition, proportionality, equal treatment and transparency, and follows the guiding principles laid down in a framework of legislative directives and internal Company codes, policies and regulations.
Framework
Law 31/2007
Code of Ethics and Professional Conduct
Supplier code of conduct
Procurement policy
Sustainability policy
Guide for the prevention of corruption
Internal regulation
Levers for ongoing improvement
Strategic plan of the Red Eléctrica Group
Transformation and resources master plan (Corporate Department)
Procurement master plan
Audits
Assesments
Customer and supplier satisfaction surveys
Objectives and projects
Pillars
Continuous search for the lowest expected overall cost
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- Search for efficiency, effectiveness, and simplification of processes
- Implementation of sourcing strategies to optimise own resources
Transparency and the separation of functions within the management processes
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- Centralised management of the supply chain through the separation of functions
- Existence of a specific independent department for suppliers
- Maximum communication with the supplier in all processes
- Open/transparent supplier qualification process
- Processes in systems (traceable and auditable)
Ethical management and the development of suppliers and subcontractors
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- Communication channels available to suppliers: ASA + Dígame + Compliance and whistle-blowing channel
- Campaigns for extending the Company’s principles and policies to suppliers
- Specific development plans resulting from their supervision and monitoring
- Development of medium to long-term partnerships
Minimisation of the risk associated with the procurement processes
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- Identification of legal / business / technical / sustainable impacts and risks and categorisation of associated suppliers
- Establishment of requirements that mitigate said impacts and continuous verification of said requirements in:
- The supplier selection process and the awarding of contracts
- The qualification, subcontracting and corporate monitoring of suppliers
- Acceptance of the Supplier Code of Conduct and verification of compliance with said Code through business audits
- Wide range of suppliers
Free and fair competition
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- Selection of candidates taking into account the need to ensure sufficient competition
- Ensuring free and fair competition throughout the award process
The Group extends its commitment to sustainability to all links in its value chain and has an explicit commitment to the responsible management of the supply chain, which includes the requirement that its suppliers take on the Group’s principles, priorities, strategy and goals in terms of sustainability. Furthermore, it seeks to convey the relevant and active role each supplier plays in the Group's commitment to sustainability as well as the importance of having everyone pulling in the same direction.
The Company voluntarily adheres to various initiatives and joins professional associations in order to bolster the Company’s commitment to sustainability and extend it to its to suppliers, noteworthy among these initiatives, is its pledge to the Ten Principles of the United Nations Global Compact.
As a company, we continue to focus on the areas of occupational health and safety, the natural environment, the fight against corruption and the respect for human rights. Additionally, the Company monitors the accident severity and frequency ratio of its contracted service & goods suppliers and has implemented measures to guarantee the health and safety of all the people who carry out their activity in our facilities.
Within the Company’s 2030 Sustainability Commitment, our Climate Change Plan contains a specific target related to the reduction of emissions associated with the supply chain (Scope 3) and the involvement of our suppliers in the commitments. As the first step, we have developed a methodology for measuring emissions associated with the supply chain and will continue driving the necessary actions to determine the maturity of our suppliers in their fulfilment of the reduction of emissions, in addition to setting new goals. Furthermore, we work closely with them to help them calculate and verify their carbon footprint.
The Group will also continue working on all the initiatives included in the 2030 Circular Economy Roadmap which establishes and prioritises, in alignment with the agents in the value chain, measures to reduce the consumption of raw materials in the production processes as well as to promote the use of recycled, renewable and biodegradable materials. Moreover, it seeks to put in place initiatives to maximise use of the goods at the end of their useful life. In order to foster and promote the circular economy throughout the value chain, the Company has identified, and included in said Roadmap, the circular economy criteria related to the supply chain that it considers of greater relevance.
In order to transfer the Company's sustainability principles to the value chain, it has been established that the Supplier Code of Conduct be an intrinsic part of the contractual documentation. Compliance thereto is verified by conducting social audits on our suppliers.