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Learn about Transparency in the Supply Chain
Engaging with Suppliersfor Sustained Success
José Figueiredo SoaresCorporate Sustainability and Environment OfficeEDP Energias de Portugal, SA
Learn about Transparency in the Supply Chain
Agenda:
EDP in brief
Managing for sustained success
Building trust with stakeholders
Suppliers relationship management
Transparency in the supply chain
Conclusions
Trustof shareholders, customers, suppliers and other stakeholders;
Excellencein the way we implement;
Initiativedemonstrated through behavior and attitude of our people;
Innovationwith the objective of creating value within the various areas in which we operate
Sustainabilityaiming at improving the quality of life of current and future generations.
Learn about Transparency in the Supply Chain
In brief:
A global energy providing company,leader in creating value, innovation and sustainability
Vision
Values
In brief (2009, aprox.):
12 096 employees20 624 MW installed capacity76 590 GWh distributed energy10,9 million clients12,2 billion€ turnover3,3 billion€ EBITDA
Learn about Transparency in the Supply Chain
Implementing a strategy:
Steered
GrowthGreater
EfficiencyControlled
Risk
Learn about Transparency in the Supply Chain
Strategic guidelines 2010-2012, concerning Sustainability:
Improve integrationof sustainability and environmental
management intoGroup’s managementand control systems
Identify best practicesand promote internal and
external partnerships
Improve internal skillson environmental responsibility
and risk management
Develop a corporate cultureof excellence in
sustainability performance
Improve knowledge on stakeholders’ expectations
and assess Group's performancevis a vis those expectations
Learn about Transparency in the Supply Chain
Summary of 2009 performance indicators:
10.393 10.751
13.46811.796
2006 2007 2008 2009
Direct economic value generated
7.419 7.893
10.089
7.797
2006 2007 2008 2009
Economic value distributed
Summary of 2009 performance indicators:
163.471 157.897 163.783
118898
2006 2007 2008 2009
Environmental Investments Environmental Costs
Summary of 2009 performance indicators:
0,00
2,00
4,00
6,00
8,00
1 2 3 4
76
68
64
72
67
63
78
70
66
Sat
isfa
ctio
nw
ithco
man
y
Sat
isfa
ctio
nw
ith w
ork
area
Mot
ivat
ion
2006 2008 2009
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
EDP performance: 2004-2009 evolution(points)
• 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;
• 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).
Building Trust
by improving performance reporting
1997GRI 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
2008200720062005
(…)
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 disclosedits CO2 management approach and resultsunder CDP project. EDP scored #17 global, #8 Europeand #1 Portugal.100% assessment in “scopes 1 and 2 reporting”;“energy use reporting” and “public reporting”.
GRI OS 2004, 2005, 2008, 2009, 2010 LBG Partner since 2008 WBCSD and BCSD Portugal, member since
2004 Instituto Ethos (Brazil) Global Compact
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
• Distribution of Procurement activity (not including energy) in the EDP Group by nature and geography
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
• Registration
• Pré-
qualification
• Qualification
• Monitoring
•
Optimization
• Integration•
Performance
assessment
& reporting
HC Energia
EDP
EDP Gás
Energias do Brasil
Naturgás
EDPR - EU
Horizon
SRFSuppliers
Registration System
Supplier
Sinergie SAPSQF
Supliers QualificationSystem
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.
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).
Services and products
with strategic relevance
or technical specificities .
High value contracts.
Non relevant commoditiesNon relevant commodities
Strategic relevance
Nível BásicoNível Básico
“Repro” level
Tech
nic
al com
ple
xit
yBasic level
more information inhttp://www.edp.pt/en/fornecedores/Pages/HPFornecedores.aspx
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
ISO 9001
ISO 14001
OHSAS 18001
59 %
28 %
28 %
Certified management
systems
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 developmentand economic growth;
Opportunities to cooperate on technological, product andmarket innovation;
Impact that strategic suppliers have on EDP's sustainabilityperformance (eg. legal compliance, service quality,health&safety, environmental management, etc.).
After joining GRI’s GANTSCh initiative, EDP launchedits CValor Project, and invited its suppliers to participate.Five of them answered positively and received trainingon measuring and reporting on their sustainabilityperformance 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:
To respond to suppliers stated interest in cooperate with EDP on sustainability initiatives, in a non contractual, voluntary context;
To enhance the value and exemplarity of this initiative, giving it an international visibility;
To learn about perceived benefits by EDP’ SME suppliers in implementing GRI guidelines on sustainability reporting;
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
To increase trust in client-supplier relationship
Learn about Transparencyin 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 overallquality of the work was of very good standard.
Evaluation of the preliminary results :
Learn about Transparencyin 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
To get detailed information:
www.edp.pt
Learn about Transparencyin the Supply Chain
Thank you for your attention!jose.figueiredosoares@edp.pt
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