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Vendor rating

We constantly monitor the performance of suppliers to promote excellence throughout the entire supply chain of the Group.

We evaluate and monitor the performance of our suppliers to encourage their improvement and suggest development and growth actions.

  • Objective

    To monitor the technical, organizational, and managerial capacity, as well as the ethical, economic-financial reliability and compliance of the Group's suppliers, to achieve continuous improvement and ensure an increasingly high-quality level.

  • Who is involved

    All suppliers on the Italgas Vendor List who already have at least one contract in execution.

What happens in this phase?

Before awarding a contract or order, the Italgas Group conducts compliance and reputation checks. The Evaluation Team at Italgas ensures all necessary investigations to identify non-compliance with Italgas’ requirements and alignment with the Group’s Code of Ethics.

For suppliers with an active contract or order, the Italgas Group conducts further periodic checks, the so-called Vendor Rating 360°, based on the following indices:

  • Operational Index;
  • Sustainability Index;
  • Financial Solidity Index.

Operational Index

It is the supplier evaluation system based on three questionnaires, divided by commodity types (Goods, Works, Services) that analyze aspects of Quality, Team, Respect for Deadlines, Propensity for Digitalization, and Partnership, and consequently assigns an overall score (0-100) to each supplier.

A Vendor Rating below 60 could result in measures against the supplier that may vary depending on the severity. In addition to evaluation through feedback, the HSE structure of Italgas Technical Audit constantly monitors on-site activities through audits and inspections at construction sites, related to quality, environment, health, and safety aspects, as well as the regular execution of works.

  • Sustainability Index

    The Sustainability Index originates from an assessment process dedicated to ESG themes and is consolidated through the completion of a questionnaire during the onboarding phase, evaluated and validated annually by an external provider, which allows each supplier to obtain a certificate. The purpose is to determine the general and specific level of Sustainability, as well as to provide a summary of certifications in the various ISO management systems. Based on the score obtained in the questionnaire, the supplier receives an evaluation or "Sustainability Index," which forms part of the total supplier rating. If the rating is below the predetermined threshold, the supplier will not be admitted to the subsequent qualification phases. In case of a medium-low rating, targeted development plans and training paths will be provided, including ESG audits on desk or on-site, to identify areas for improvement and monitor performance in the short and long term.

  • Financial Solidity Index

    Similar to the Sustainability Index, the monitoring of the Financial Solidity Index is also carried out through an external provider, which annually analyzes economic and financial aspects of all suppliers subjected to the Qualification or Renewal process. If the rating is below the predetermined threshold, the supplier will not be admitted to the subsequent qualification phases. The most complex cases are further investigated by the Evaluation Team.

Vendor Rating Monitoring

Supplier performance management is regulated by the “Supplier Regulation” and monitored through technical and operational audits, which ensure adequate working conditions and compliance with standards.

The monitoring of identified indices and criteria is carried out periodically to have an always updated evaluation of the performance of suppliers on the Vendor List.

The overall score assigned to the supplier is determined by the sum of each indicator (Operational Score, Sustainability Score, Financial Solidity Score), weighted equally.

For each individual indicator, a score is assigned that contributes to defining the supplier’s overall score, which is determined based on the achievement of a minimum required threshold.

Audits and Inspections

Technical visits and on-site audits, even during the Vendor rating phase.
The Italgas Group constantly monitors supplier performance through on-desk and on-site qualification, process, and ESG audits, as well as construction site inspections on HSE topics.

The audit process takes place both during the qualification phase and the renewal phase, is on-site, and is required for Strong Level Commodity Groups.

The checks, entrusted to third-party companies according to the ISO/IEC 17021-1:2015 standard, include ESG audits to analyze human rights, working conditions, consumption, and environmental impacts. At the end of the audits, any critical issues are classified into three levels (Minor, Severe, Critical), with an action plan shared and monitored with the supplier to evaluate its effectiveness.