The value of partnership
Suppliers involved in the CDP supply chain initiative
In 2020, Snam provided work to 541 companies, signing 1,338 supply contracts worth approximately € 1,832 million
Snam’s Supplier Portal – a web platform that facilitates information exchange – 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” project, which aims to identify and enhance existing and potential knowledge, practices, initiatives capable of simultaneously creating competitive value for the company and its stakeholders, Snam shares value by providing corporate know-how through a ‘knowledge sharing’ approach. 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 2020, Snam worked with 541 companies, stipulating about 1,338 supply contracts worth approximately € 1,832 million (96% in Italy) 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
- 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 Group's goal is to increase the number of suppliers from the Third Sector on the Vendor List by 20% by 2023 (compared to 2019).
More generally, in 2020, there were 26 companies belonging to the Third Sector registered in the Snam Supplier Register, a significant increase in number compared to the 7 companies of the previous year. They provided services for more than Euro 200,000, mainly in the areas of green care and maintenance and catering.
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 2020, the company extended the scope of its analysis by inviting the most significant suppliers in terms of procurement and the most strategic suppliers in the transport sector to provide their data, covering 75% of total procurement. The response rate to the questionnaire has further increased compared to 2019, from 56% to 60%.
Snam obtained a CDP - Supply Chain score of A-, demonstrating its commitment to engaging its suppliers on issues related to reducing emissions and developing sustainability strategies. These activities will help the Group to better define its Scope 3 emission reduction strategy.
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 2020 alone, more than 7,200 users registered on the portal (+37% compared to 2019), belonging to more than 2,200 suppliers (+9% compared to 2019). This year too, the portal was used to ensure constant and transparent communication with suppliers, who received a total of over 25,000 e-mails (+6% compared to 2019).
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
05 May 2021 - 11:17 CEST