GRI Conference - 28 May - Figereido Soares - Learn About Transparency in the Supply Chain
Learn about Transparency in the Supply Chain Engaging with Suppliers for Sustained Success José Figueiredo Soares Corporate Sustainability and Environment Office EDP Energias de Portugal, SA
Learn about Transparency in the Supply Chain Agenda: <ul><li>EDP in brief </li></ul><ul><li>Managing for sustained success </li></ul><ul><li>Building trust with stakeholders </li></ul><ul><li>Suppliers relationship management </li></ul><ul><li>Transparency in the supply chain </li></ul><ul><li>Conclusions </li></ul>
Learn about Transparency in the Supply Chain Trust of shareholders, customers, suppliers and other stakeholders; Excellence in the way we implement; Initiative demonstrated through behavior and attitude of our people; Innovation with the objective of creating value within the various areas in which we operate Sustainability aiming at improving the quality of life of current and future generations. In brief: A global energy providing company, leader in creating value, innovation and sustainability Vision Values
In brief (2009, aprox.) : 12 096 employees 20 624 MW installed capacity 76 590 GWh distributed energy 10,9 million clients 12,2 billion€ turnover 3,3 billion€ EBITDA
Learn about Transparency in the Supply Chain Implementing a strategy: Steered Growth Greater Efficiency Controlled Risk
Learn about Transparency in the Supply Chain Strategic guidelines 2010-2012, concerning Sustainability: Improve integration of sustainability and environmental management into Group’s management and control systems Identify best practices and promote internal and external partnerships Improve internal skills on environmental responsibility and risk management Develop a corporate culture of excellence in sustainability performance Improve knowledge on stakeholders’ expectations and assess Group's performance vis a vis those expectations
Learn about Transparency in the Supply Chain Summary of 2009 performance indicators: Direct economic value generated Economic value distributed
Summary of 2009 performance indicators: Tf total 2006 2007 2008 2009
Environmental Dimension ( Weight: 36%) Summary of 2009 performance indicators: +4% EDP Sustainability Index (points) +6% ~0% Economic Dimension ( Weight: 33%) +7% Social Dimension ( Weight: 31%)
Recognition of the company’s performance and of the maturity of its economic, social and environmental management <ul><li>In 2009, EDP was listed on the DJSI, for the second consecutive year, ranking only 2 points below the world leader in the electricity sector; </li></ul><ul><li>EDP improved its performance from “Silver Class”, in 2009, to “Gold Class”, in 2010, in the worldwide “Sustainability Yearbook 2010” published by SAM (Sustainable Asset Management). </li></ul>EDP performance: 2004-2009 evolution (points)
Building Trust by improving performance reporting 1997 GRI Guidelines adoption 2001 2002 Institutional, Corporate Governance and Sustainability Report National award National award National award National award 1º Report on Environmental Performance 1º Sustainability Report 2003 2004 2008 2007 2006 2005 (…) 2009
Building Trust by measuring, benchmarking and disclosing management systems performance For the second consecutive year, EDP was rated #1 in Portugal, by Accountability Rating Portugal, Sair da Casca . In 2009, EDP was also rated #2 in the Iberian Peninsula outperforming on “Management and Governance Systems”. EDP’s CSR practices are regularly assessed internationally
Building Trust by measuring, benchmarking and disclosing management systems performance For the first time, in 2009, EDP disclosed its CO2 management approach and results under CDP project. EDP scored #17 global, #8 Europe and #1 Portugal. 100% assessment in “scopes 1 and 2 reporting”; “ energy use reporting” and “public reporting”.
<ul><li>GRI OS 2004, 2005, 2008, 2009, 2010 </li></ul><ul><li>LBG Partner since 2008 </li></ul><ul><li>WBCSD and BCSD Portugal, member since 2004 </li></ul><ul><li>Instituto Ethos (Brazil) </li></ul><ul><li>Global Compact </li></ul>Partnering to develop knowledge: To acquire knowledge and support its strategies, EDP maintains partnerships with a large variety of organizations (universities, NGO’s, professional and technical entities, etc), in all geographies where it operates. Some of these, are relevant knowledge centers for sustainability management:
Deepening stakeholders’ engagement: The materiality matrix
<ul><li>Distribution of Procurement activity (not including energy) in the EDP Group by nature and geography </li></ul>Managing the supply chain: 2009 Procurement activity in EDP Group (not including energy) totalled circa € 3,3 billion
Managing the supply chain: EDP has about 30 000 suppliers, 11 000 of which are included in our SRM (suppliers relationship management) system, due to their relevance to the business. Selection Assesse- ment Develop- ment <ul><li>Registration </li></ul><ul><li>Pré-qualification </li></ul><ul><li>Qualification </li></ul><ul><li>Monitoring </li></ul><ul><li>Optimization </li></ul><ul><li>Integration </li></ul><ul><li>Performance assessment & reporting </li></ul>
HC Energia EDP EDP Gás Energias do Brasil Naturgás EDPR - EU Horizon Supplier Managing the supply chain: EDP has about 30 000 suppliers, 11 000 of which are included in its SRM (suppliers relationship management) system, due to their relevance to the business. SRF Suppliers Registration System Sinergie SAP SQF Supliers Qualification System
Managing the supply chain: distinction between strategic and non strategic suppliers, based on the value of the contracts involved, technical or commercial particularities of certain contracts/markets or the relevance of the product/service to be supplied to EDP's strategical or operational objectives (including sustainability in a broad sense). Non relevant commodities Strategic relevance Nível Básico “ Repro” level Technical complexity Basic level more information in http://www.edp.pt/en/fornecedores/Pages/HPFornecedores.aspx Services and products with strategic relevance or technical specificities . High value contracts.
Learn about Transparency in the Supply Chain Building Trust within the supply chain: In 2009, 46% of the suppliers in Portugal, Spain and Brazil with contracts over € 75 k, were registered in EDP’s SRF. A significant part of them already report the existence of certified management systems 59 % 28 % 28 % Certified management systems ISO 9001 ISO 14001 OHSAS 18001
Building Trust within the supply chain: Given the continuity of EDP’s presence in the markets and the volumes and levels of technicity of the services and products purchased, influences within the supply chain are bidirectional and significant. Among them: etc.). EDP's capacity to promote/enforce good practices, both social and environmental, and to drive sustained social development and economic growth; Opportunities to cooperate on technological, product and market innovation; Impact that strategic suppliers have on EDP's sustainability performance (eg. legal compliance, service quality, health&safety, environmental management, etc.).
After joining GRI’s GANTSCh initiative, EDP launched its CValor Project, and invited its suppliers to participate. Five of them answered positively and received training on measuring and reporting on their sustainability performance using the GRI G3 Guidelines. Building Trust within the supply chain: Transparency in the Supply Chain: EDP’s CValor Project
Building Trust within the supply chain: Main objectives of CValor Project were: <ul><li>To respond to suppliers stated interest in cooperate with EDP on sustainability initiatives, in a non contractual, voluntary context; </li></ul><ul><li>To enhance the value and exemplarity of this initiative, giving it an international visibility; </li></ul><ul><li>To learn about perceived benefits by EDP’ SME suppliers in implementing GRI guidelines on sustainability reporting; </li></ul><ul><li>To promote sustainability performance and commitments disclosure as a mean of maturing management systems, in domains that are critical to EDP’s own performance; and </li></ul><ul><li>To increase trust in client-supplier relationship </li></ul>
Learn about Transparency in the Supply Chain Building trust within the supply chain: Considering the mean maturity level of the participants’ management systems, project duration and structure (number and frequency of workshops) were adequate. Although, in order to maximize possible benefits, early participation of suppliers representatives should be encouraged by the support team. With some exceptions, we observed a slow gradual development in the initial stages of the project. Also, the number and the hierarchy involved, were not always enough to provide a guarantee of continuity and integration of sustainability reporting. Nevertheless, despite the motivations of the participants being rather different, the overall quality of the work was of very good standard. Evaluation of the preliminary results :
Learn about Transparency in the Supply Chain Conclusion: In conclusion, GANTSCh/CValor Project was a positive step forward in adding value to EDP, concerning its engagement with suppliers, as part of its global stakeholder engagement strategy. Initial expectations were entirely met and this provides us with renewed confidence to hold a second edition of this project. For that purpose EDP is already actively looking for interested parties among its suppliers.
Learn about Transparency in the Supply Chain To get detailed information: www.edp.pt
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