The value of partnership
Suppliers involved in the CDP supply chain initiative, the program that makes suppliers aware of the climate changes underway and to act responsibly for their reduction
In 2021, Snam provided work to 780 companies, signing 1,959 supply contracts worth approximately € 1,517 million
Snam’s Supplier Portal – a web platform that facilitates information exchange and best practices sharing – has been updated
For Snam, creating value partnerships with its suppliers means first and foremost relating to them in a transparent manner and, once the supply relationship has commenced, involving them in achieving long lasting performance through mutual growth.
Based on the “Shared Value” approach, Snam shares value by providing corporate know-how through knowledge sharing. This process aims to support companies in the supply chain throughout a continuous improvement process which, on the one hand, increases their competitiveness and, on the other, increases the reliability of the partnership with Snam, thus benefitting the final quality of the service provided.
Businesses that want to provide goods, works or services to Snam Group companies have to share our passion for sustainable innovation and our commitment to reducing social and environmental risks and impact throughout the supply chain.
In 2021, Snam worked with 780 companies (494 SMEs), stipulating about 1,959 supply (of which 63% in favour of SMEs) contracts worth approximately € 1,517 million (of which 1,312 million in Italy and over 611 million in favour of SMEs) divided between goods, labour and sevices.
Shared Value approach implementation to relationship with suppliers
- Introduction of the Social Supply Chain Policy
- Suppliers' performance evaluation by means of HSE requirements
- The implementation of an "Ethics and Integrity Agreement" with suppliers, to reinforce their commitment towards Snam's core values
- the organization of workshop for suppliers, particularly dedicated to knowledge sharing and training in order to share good practices with particular reference to decarbonisation
- the diffusion of legality protocols in areas at greatest risk, to spread the new culture by affirming the universal principles of legality throughout the supply chain
- the creation of a Supplier Portal, to facilitate the exchange of information, with a focus on sustainability issues
WHAT THE VALUE OF PARTNERSHIP MEANS: THE SOCIAL SUPPLY CHAIN POLICY
Under the scope of its own sustainable development model the Company is committed, not only to disseminate the sustainable development goals (SDGs) promoted by the UN, but also to steer corporate activities so that they contribute to their achievement. The supply chain activities also strive towards an inclusive growth and in 2018 the Company published a social supply chain policy through which it is committed to open and sustain the involvement of social businesses in its supply chain, promoting opportunities of collaboration through networks and consortia of social enterprises.
The publication of a specific policy formally promotes the attention which Snam focuses on the third sector, in line with the sustainable development processes in the supply chain.
The involvement of social cooperatives in the supply chain, in accordance with methods that are obviously in line with Snam processes and provisions in this area, also represents an opportunity for development in the areas and local communities in which the Company operates and where these cooperatives have stronger roots.
Snam therefore recognises the role of business organisations which relate to the social economy and the third sector and which play a role in labour policies and social inclusion, in order to promote the employment of weaker and socially disadvantaged groups. With this line of reasoning, it promotes potential opportunities for collaboration through networks and consortia of social enterprises and fosters the inclusion of social enterprises as sub-contractors, also through the introduction of reward mechanisms in the criteria for evaluating bids. Snam also encourages its suppliers to define policies that include social cooperatives and enterprises in their supply chain.
The ESG scorecard target regarding the presence of suppliers from the Third Sector in the Snam's vendor list was reached ahead of schedule.
Actually, in 2021, there were 83 companies belonging to the Third Sector registered in the Snam Supplier Register, a significant increase in number compared to the 26 companies of the previous year. Snam has provided work worth 2.5 million euros to these companies, mainly in the areas of providing research services and green maintenance.
Read the Social Supply Chain Policy
WHAT THE VALUE OF PARTNERSHIP MEANS: CDP Supply Chain
Snam continued with the involvement of a selection of its strategic suppliers in the CDP (former Carbon Disclosure Project) - Supply Chain programme, which started in 2019.
The CDP Supply Chain Program stems from the awareness that a company's environmental impact does not end within the company's perimeter, but also extends to its suppliers and employees, with whom it has established a lasting partnership. The purpose of the programme is to collect data from suppliers on their greenhouse gas emissions into the atmosphere (Scope 3 emissions), with the aim of raising awareness of climate change and working responsibly to reduce them. Through its participation in the CDP Supply Chain Program, Snam seeks to understand the emissions of suppliers caused by the Group's activities.
In 2021, the company has further extended the scope of its analysis, inviting the most significant suppliers in terms of procurement and those most strategic to the business to provide their data. The response rate to the questionnaire has further increased compared to 2020, from 60% to 74% (99 suppliers participated of the 130 invited). The score was further improved and reached the highest level A in 2021, recognising the commitment to engaging suppliers on issues related to reducing emissions and developing sustainable strategies.
WHAT THE VALUE OF PARTNERSHIP MEANS: the survey about sustainability and decarbonisation
The direct involvement of suppliers in 2021 was characterised by a multi-pronged dialogue, which will be complemented in the future by training activities, technical webinars and working groups. Supplier involvement is designed to provide each operator in the chain with the most suitable approach, taking due account of the heterogeneity of Snam’s supplier base and the different sensitivities and specific skills on sustainability issues.
During the year, a survey was carried out (314 suppliers were involved, of which 226 participated, corresponding to 84% coverage of the 2018-2020 procurement), which revealed that:
- 76% have adopted their own Code of Ethics;
- 23% draw up an annual Sustainability Report;
- 21% members of international sustainability initiatives;
- 72% have an Environmental Management System (ISO 14001 certification);
- 33% have defined sustainability strategies;
- 35% have implemented direct action to mitigate climate-changing emissions;
- 17% have measurable targets for reducing greenhouse gas emissions;
- 25% report their greenhouse gas emissions annually.
WHAT THE VALUE OF PARTNERSHIP MEANS: THE SUPPLIERS' PORTAL
Activated in 2013, the Portal is the most important way of implementing Snam’s procurement policy and of making an additional contribution in terms of transparent, traceable and complete information available to current and potential suppliers.
It contains information, details, best practices and documents updated with the processes and procedures regulating qualification and procurement activities.
In 2021 alone, more than 9,070 cumulative users registered on the portal (+25% compared to 2020), belonging to more than 3,365 suppliers (+47% compared to 2020). This year too, the portal was used to ensure constant and transparent communication with suppliers, who received a total of over 15,338 e-mails.
WHAT THE VALUE OF PARTNERSHIP MEANS: THE LEGALITY PROTOCOLS
As part of the activities relating to the construction of the “Pedemontana Veneta” toll expressway and the Protocol signed between the Region of Sicily, Regional Council for Energy and Public Utility Services, the Ministry of the Interior, the Prefectures of the Sicilian provinces and Confindustria Sicily, Snam signed a protocol with the Prefecture of Caltanissetta with regard to the area of Gela.
By signing the protocol, Snam continued its objective of diffusing the legality protocols as part of the agreement between Snam Rete Gas and Consorzio Stabile SIS Società Consortile per Azioni.
This aim of this experiment, carried out with the involvement of public and private partners, is to:
- prevent the risk of corruption in the interests of legality
- support the fight against organised crime
- promote ethical behaviour in the relationships between the various players
- foster the development of fair, ethical and meritocratic local entrepreneurship.
By signing this document, Snam undertakes to ensure that its suppliers and sub-contractors also comply with its provisions, with a view to effectively preventing the infiltration of organised crime.
>Find out more on the page Third-party relationships
03 May 2022 - 10:20 CEST