Responsible supply chain management
The Red Eléctrica Group undertakes the responsible management of its value chain as a sustainability priority, starting with our own people all the way through to our suppliers and customers.

Our suppliers constitute a key stakeholder group for the Company and, therefore, we believe it is necessary to carry out a sustainable management of our supply chain, promoting responsible practices and applying sustainability criteria in all supply chain processes. All of this is reflected in our Corporate Responsibility Policy and as one of the priorities defined in our 2030 Sustainability Commitment. Said commitment has been designed taking into account that the priorities and actions of our company contribute significantly to the achievement of the Sustainable Development Goals.

Red Eléctrica has a responsible supply chain management model that is managed based on the principles of non-discrimination, mutual recognition, proportionality, equal treatment and transparency, and follows the guiding principles laid down in a framework of legislative directives and internal Company codes, policies and regulations.

Our responsible supply chain management model
Framework
Law 31/2007 Code of Ethics and Professional Conduct Supplier code of conduct Procurement policy Sustainability policy Guide for the prevention of corruption Internal regulation
Levers for ongoing improvement
Strategic plan of the Red Eléctrica Group Transformation and resources master plan (Corporate Department) Procurement master plan Audits Assesments Customer and supplier satisfaction surveys Objectives and projects
Pillars

Continuous search for the lowest expected overall cost

  • Search for efficiency, effectiveness, and simplification of processes
  • Implementation of sourcing strategies to optimise own resources

Transparency and the separation of functions within the management processes

  • Centralised management of the supply chain through the separation of functions
  • Existence of a specific independent department for suppliers
  • Maximum communication with the supplier in all processes
  • Open/transparent supplier qualification process
  • Processes in systems (traceable and auditable)

Ethical management and the development of suppliers and subcontractors

  • Communication channels available to suppliers: ASA + Dígame + Compliance and whistle-blowing channel
  • Campaigns for extending the Company’s principles and policies to suppliers
  • Specific development plans resulting from their supervision and monitoring
  • Development of medium to long-term partnerships.

Minimisation of the risk associated with the procurement processes

  • Identification of legal / business / technical / sustainable impacts and risks and categorisation of associated suppliers
  • Establishment of requirements that mitigate said impacts and continuous verification of said requirements in:
    • The supplier selection process and the awarding of contracts
    • The qualification, subcontracting and corporate monitoring of suppliers
  • Acceptance of the Supplier Code of Conduct and verification of compliance with said Code through business audits
  • Wide range of suppliers

Free and fair competition

  • Selection of candidates taking into account the need to ensure sufficient competition
  • Ensuring free and fair competition throughout the award process

 

Extending sustainability principles throughout the supply chain

The Red Eléctrica Group extends its commitment to sustainability to all links in its value chain and has an express commitment to the responsible management of the supply chain, which includes the requirement that its suppliers take on the Group’s principles, priorities, strategy and objective in terms of sustainability. Furthermore, it pursues to convey the importance and active role each supplier plays in the Group's commitment to sustainability, as well as the importance of having everyone pulling in the same direction.

Red Eléctrica voluntarily adheres to various initiatives and professional associations that allow their commitment to sustainability to be strengthened and extended to its to suppliers, noteworthy among these initiatives, is its pledge to the principles of the United Nations Global Compact United Nations Global Compact.

As a company, we continue to focus on the areas of occupational health and safety, the environment and the respect for human rights. The Company monitors the accident severity and frequency ratio of its contractors and has implemented measures to guarantee the safety of all the people who carry out their activity in our facilities.

Within the 2030 Sustainability Commitment, our Climate Change Plan contains a specific objective related to the reduction of emissions associated with the supply chain (Scope 3) and the involvement of our suppliers in Red Eléctrica's commitments. As the first step, we have developed a methodology for measuring emissions associated with the supply chain and will continue to advance in determining the maturity of our suppliers in reducing emissions and setting goals, and we will help them to calculate and verify their carbon footprint. In addition, the Company continues conducting social audits in order to verify correct compliance with the Supplier Code of Conduct.

The Red Eléctrica Group will also continue working on all the initiatives included in the Circular Economy Roadmap 2030 which establishes and sets priorities in alignment with the agents in the value chain, measures to reduce the consumption of raw materials in production, the use of recycled, renewable and biodegradable materials and searches for ideas to make use of these at the end of their working life.

Red Eléctrica has made a guide available to all of its suppliers to help them incorporate sustainable aspects into their business management.

 

Our suppliers talk about us

 

As part of our commitment towards shared value creation with all our stakeholders, we regularly carry out perception studies to enable us to improve our relations with them.

In 2020 we asked our suppliers to find out how they evaluate the supply chain, the corporate reputation of the Group and the most important aspects of sustainability, and exceptionally, we have also asked their opinion about the company’s response to the COVID-19 health crisis. The results were are follows.

  • Level of participation: 61.8%, which guarantees the reliability of the survey
  • Overall satisfaction level: 7.6 out of 10
  • Evaluation of services: 7.8 out of 10
  • Corporate reputation of Red Eléctrica: 8.4 out of 10
  • Response of Red Eléctrica to the COVID health crisis: 7.9 out of 10

 

Thank you for taking part and helping us to improve every day!

If you are interested you can see the full report (link to the PDF) (Available only in Spanish)