“Currently, our core objective is to maximize value creation in all forms and improve the purchase experience from start to finish for those involved in the supply chain: buyers, suppliers, service providers, and clients, offering ever more effective solutions for business.”
In line with Enel Group policy and with the goal of bolstering the achievement of SDG 12, the company is implementing a strategy to promote a sustainable supply chain based on three key pillars: inclusion of sustainability criteria in the supplier and service provider selection process (in areas such as the environment, health and safety, and human rights), promotion of the Circular Economy, and supplier and service provider capacity building.
Circular Economy Strategy
“The Circular Economy is an economic model that boosts competitiveness, combining innovation with sustainability. To this end a strategy known as Circular Procurement has been defined, with the goal of acquiring goods and services from our suppliers and service providers that reduce life cycle environmental impact, with a major drop in waste products,” says the division leader at Enel Chile, discussing the global strategy implemented by Enel Group in 2019.
Standards are verified at a number of stages, starting with Classification, where a shortlist of suppliers or service providers are selected, evaluating aspects such as integrity requirements, ethics, and human rights, as well as the constant important of health, safety, and the environment. Stage two comprises a Tender Process, evaluating the economic and technical benefits of each supplier’s offer. Higher scores are given to unique factors in each category: Social, Environmental, Health and Safety, Circular Economy, and Certifications. The final two phases are Contracting and Contract Management, with monitoring and evaluation of both suppliers’ performance and their compliance with contractual conditions, using the Supplier Performance Management (SPM) system. A new SPM was implemented in 2019, allowing real time monitoring using 6 measurement systems:
Seeking the commitment of Enel’s suppliers and service providers
Enel Chile, in line with the Enel Global Procurement philosophy, encourages suppliers and service providers to follow the corporation’s three pillars. The first, commitment to the Circular Economy, measuring and reporting the environmental impacts of their operations, implementing circular economy measures in their supply chains, or participating in Circular Economy projects; the second, the promotion of the Environmental Declaration System, designed for companies to calculate, report, and evaluate the environmental performance of their products or services to certify they eco-efficiency of their processes; and the third, the launch of Co-Innovation projects, to examine production processes, update purchasing methods, and/or co-design in line with the principles of the Circular Economy.
“Inspired by the Open Power vision that encourages us all to form part of a network that will provide new solutions to build a sustainable future, the SDGs, and the three pillars of action that we have defined - Social Sustainability, Circularity, and Innovation - we have developed and implemented a series of mechanisms that allow us to follow a pathway towards promoting the creation of a sustainable supply chain ecosystem that involves our suppliers and their subcontractors, while maintaining a virtuous two-way relationship with our suppliers and service providers.”
Working with small and medium-sized businesses and providing support during the pandemic
Enel has placed particular emphasis on doing business with local companies and workers where the company possesses facilities, contributing to SDG 8, on decent work and economic growth.
“We at Procurement have built spaces to allow local businesses and self-starters to participate in our purchasing processes. Differentiated qualification requirements have been specified for our suppliers and service provider depending on the risks to safety and integrity associated with each type of goods and services. We thus have stricter requirements for more complex services, and can be more permissive with others.”
During the final months of 2020, relations with suppliers and service providers have encouraged Procurement to act very quickly in response to the pandemic, with the need to adapt the acquisition strategy to prevent any impact on business and protect suppliers’ financial health.
“We have been monitoring the performance and availability of global suppliers and service providers engaged in providing the company with the materials, equipment, and critical services it needs for current projects, verifying possible delays in deliverables and working on alternative mitigation plans when necessary.”
Together with financial measures, contractors have been offered the chance to acquire personal protective equipment for their workers, under similar pricing conditions to those obtained by Enel on the global markets.
World Procurement Award 2020
In September 2020, Blue Note Milano hosted over 100 professionals and decision makers in the world of procurement to present the World Procurement Award 2020, recognizing the best projects, with Enel Group Global Procurement nominated in four categories and taking first place in Talent and Development. This was yet another opportunity for the company to showcase its ongoing efforts in improvement and innovation.
It comes as a result of the company’s work throughout the world in recent years, integrating sustainability into everyday activities as a key factor for creating value at every link in the production chain.
Enel Chile works every day with the mission of being a sustainable company, both in operations and in its dealings with companies that show and certify their commitment to safety and the environment.
To find out more about current work with suppliers and service providers:
- Enel Chile Sustainability Report 2019, and see page 245 in this link.
- Section Collaborate with Us.
