Sustainability in the supply chain

We ask our suppliers to ensure their business model is sustainable and responsible over time. We are committed to supporting them on their path.

To ensure the integrity and sustainability of the Group’s supply chain, the commitment of all players involved is essential

Increasing attention to sustainability issues and the need to measure, manage and mitigate ESG (Environmental, Social and Governance) risks drive us more and more to promote and encourage responsible business not only for the Group, but above all for our suppliers.

To become part of our supply chain it is necessary to endorse the Group’s Code of Ethics, as well as the Code of Ethics of the Italgas Suppliers and the Ethics and Integrity Agreement, in compliance with our Organisational Model 231.

Moreover, we require you to meet important criteria in terms of human rights and work by accepting the Italgas Policy on Human Rights, health and safety, environmental protection and the ethical and meticulous management of the business.

Our priority objectives include continuous monitoring of the environmental, social and governance impact on the entire supply chain, supporting our partners in their growth process.

Being a sustainable supplier

We are on the frontline to provide our partners with the support they need to integrate the sustainability criteria required in their business and to strengthen their performance in terms of sustainability. 

Becoming a responsible supplier means proactively meeting the requirements in three different areas.

ISO Certifications

 

In order to maintain a constant and high-quality level, we require suppliers to have specific ISO Certifications. These confirm the creation, application, and maintenance of a management and work organization system consistent with specific reference standards recognized internationally.

During the qualification phase and to participate in the tender procedure, we require the following certifications:

  • ISO 9001 on quality management systems.
  • ISO 14001 or EMAS on environmental management systems.
  • OHSAS 18001/ISO 45001 on health and safety management systems.

Their mandatory nature is a requirement of product classes with a high level of complexity, but it may represent a bonus requirement for qualification and participation in tender procedures. The certificates must be issued by the Accredited Organisation “Accredia” or equivalent in the case of Foreign Certifying Bodies.


2021/2022 objectives

  • 100% – ISO 9001 for critical suppliers
  • +5% of suppliers with specific ISO/ year

We have launched a suppliers awareness campaign for them to also obtain certifications that are not yet mandatory:

  • SA8000 on social responsibility.
  • ISO 37001 on management systems for the prevention of corruption.
  • ISO 50001 on energy management systems.
  • ISO 27001 on information security.

We periodically ask our suppliers to update all their certifications on IT4Buy. We aim to increase the percentage of suppliers that are qualified and in possession of ISO certifications, constantly monitoring the environmental, social and governance impact on the entire supply chain.


The advantage of ISO Certifications for suppliers

  • Highlight and optimize the company’s commitment to the continuous improvement of its standards.
  • Participate and obtain a higher score in tender procedures.
  • Increase the market value in terms of credibility and image.
  • Involve employees in the improvement of processes and create a company culture based on sustainability and solid and measurable impact.

Our reporting

Year 2021

 

Certifications
year (2021)

 

Critical suppliers (no.)

 

Total qualified suppliers of Italgas (no.)

 

Critical suppliers (%)*

 

Qualification renewal contribution amount (%)

Total suppliers (nr.)3371,935
Total Supplier  (nr.) – w/o limitation**2371,641
ISO 900122887996%54%
ISO 1400118558378%36%
OHSAS 18001 (ISO 45001)18056176%34%
ISO 50001397716%5%
ISO 37001368915%5%
SA8000 (NEW)5013921%8%
ISO 27001 (NEW)10704%4%

*Critical suppliers (high level of complexity, ranking “A” and “B” until 2020, “Strong” from 2021).

**Note “limitation”: suppliers who have had qualification limitations following integration into the group of new companies are excluded.

 

Year 2020

 

Certifications
year (2020)

 

Critical suppliers (no.)

 

Total qualified suppliers of Italgas (no.)

 

Critical suppliers (%)

 

Qualification renewal contribution amount (%)

Total suppliers (nr.)3261,602
ISO 900130562494%39%
ISO 1400115839548%25%
OHSAS 18001 (ISO 45001)15137046%23%
ISO 5000125428%3%
ISO 3700126498%3%
SA8000 (NEW)337910%5%
ISO 27001 (NEW)2321%2%

*Critical suppliers (high level of complexity, ranking “A” and “B” until 2020, “Strong” from 2021).

 

Year 2019

 

Certifications
year (2019)

 

Critical suppliers (no.)

 

Total qualified suppliers of Italgas (no.)

 

Critical suppliers (%)

 

Qualification renewal contribution amount (%)

Total suppliers (nr.)3321,369
ISO 900130849793%36%
ISO 1400112815839%12%
OHSAS 18001 (ISO 45001)11613635%10%
ISO 50001-2018441%0,3%
ISO 37001-2011552%0,4%
ISO 37001 (NEW)552%0,4%
SA8000 (NEW)000%0%

*Critical suppliers (high level of complexity, ranking “A” and “B” until 2020, “Strong” from 2021).

 

Metric: Number and % of suppliers with the main certifications.

Target: 100% – ISO 9001 for critical suppliers, +5% ISO/ year, (target at constant scope)

Year/Period of reference: 2019 – 2022

 

 

Sustainability criteria in tender procedures

 

To increase the suppliers’ commitment, we have set important responsible sustainability criteria also during the tender phase. In 2018, we started with tender procedures for network construction and maintenance, awarding more points to bids that planned to use means of transport powered by gas or electricity, or at least Euro 5 vehicles (work vehicles). This commitment ensured that 100% of the suppliers met the requirements. To increase the coverage, we have started to analyze the minimum sustainability requirements and to add them to the evaluation of the bids, not only regarding construction and maintenance (which represent the core business and therefore most of the purchase value) but also in other areas in the public sphere.

In 2020, we added a score to tenders that require the use of company fleets (e.g. odorant distribution service bid), rewarding all suppliers that prove they replace their vehicle fleet in a sustainable manner. From 2021, we developed a scoring model that takes minimum sustainability requirements into account for all product categories, works and strategic services, including during the evaluation of bids.

In 2020, Italgas extended the rewarding criteria to the technical scoring of other tenders too, which envisage the use of company vehicles and cars where the supplier shows that it renews its fleet taking into account sustainability and in line with the CAMs (Minimum Environmental Criteria).

In 2021, Italgas developed and consolidated a scoring model that takes minimum sustainability requirements into account for all product categories, works and strategic services, including during the evaluation of bids. The new assessment criteria present in the offer model include: legality index (AGCM), injury rates (severity index and frequency index), direct and indirect CO2 emissions and sustainability report.

During tender processes, they are criteria that can ensure a better score depending on the levels certified.

 

2022 Targets

The aim for 2022 is to add additional assessment criteria to bids with particular attention paid to indirect emissions (Scope 3) and waste management.

 

Our reporting

Metric: % of tender bids using ESG criteria

Trend
2018
2%
201954%
2020100%
2021100%
2022100%

Target: 100% of the bids for network construction and maintenance, feasibility assessment to introduce “K sustainability” also to the other categories

Year/Period of reference: from 2019

 

Sustainability questionnaire

 

To achieve the Group objectives we are developing an Assessment process for ESG matters with a view to carrying out a series of ESG audits, for the growth and accountability of the suppliers.

The first step towards greater involvement of the supply chain is filling in the Sustainability Questionnaire during the application phase. The purpose is to determine the general and specific level of business sustainability and to offer a summary overview of the certifications in the various ISO Management Systems.

 

2021 Targets

  • 100% of the suppliers involved.
  • Include the questionnaire among the qualification requirements.
  • Start a training program on ESG matters.

Based on the score obtained the supplier receives a rating or “Sustainability Index”, which makes up the overall rating of the suppliers. If the rating is lower than the set threshold the supplier cannot be admitted to the subsequent phases of the qualification process. Average-low ratings will be subject to development plans, and an on-site audit will be carried out, to identify the areas of improvement and monitor performances in the short and long term.

In 2021, in addition to the new suppliers intending to become qualified, all suppliers have been involved with at least one active contract (598 suppliers as compared with the 245 suppliers involved in 2020).

 

Our reporting

Metric: % of suppliers who are qualified, strategic and at high sustainability risk (direct and indirect)

Trend
2019
32%
2020100%
2021100%
2022100%

Target: 100% of significant active suppliers qualified

Year/Period of reference: from 2019

 

Relations with suppliers: ethics and sustainability

We require suppliers to endorse and share our principles and values, complying with our model 231 and the principles of the code of ethics and the code of ethics of the Group’s suppliers.

Become a supplier

Do you want to grow alongside the Italgas Group? Our qualification process is easy, we guide you step by step.

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