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Fuel procurement

Purchasing fuel is a strategic activity for the Group, since it plays a leading role in guaranteeing the security and continuity of thermal energy production. The selection of fuel suppliers is done by assessing economic and financial aspects of the counterparties and the possession of the technical and commercial prerequisites. Suitable counterparties are subsequently included in specific Vendor Lists. Purchase contracts signed with such suppliers are subject to the rules adopted by the Group regarding the Code of Ethics and the Zero Tolerance of Corruption Plan, to which suppliers must adhere.

In relation to purchases by sea from the international market, a check is made that suppliers are not on specific blacklists of the UN, European Union and the US Office of Foreign Assets Control, lists which respectively identify individuals or organizations connected with terrorist organizations, organizations subject to financial sanctions by the EU and so-called SDN (Specially Designated Nationals) organizations which are subject to sanctions by the United States for accusations, among other things, of terrorism or drug-trafficking. Finally, in order to mitigate the risks from fuel transport by sea, Enel has adopted a tool to assess and select the transporters used, known as vetting. Vetting is a recognized industry standard for oil transport, but for some years Enel and a small number of operators have started to apply the same methodology also in the sector of dry bulk transport (minerals, coal, cereals).

Fuel purchases 2016: around 4 billion euro

Bettercoal (bettercoal.org)

In February 2012, together with other European utility companies, Enel set up Bettercoal. The Group’s commitment has taken shape both in the process of defining Bettercoal’s code, policies and governance systems and in implementing the code in its own mining operations and in transferring the Bettercoal standards to its own local coal suppliers who were initially excluded from the scope of Bettercoal, which, although it has a universal calling, at first focused on major coal exporters in Europe. During 2016 the initiative continued with the development of on site audit and the realization of a self-diagnostic process.
The Bettercoal code has been developed with the support of an independent group which represents the differing interest groups and consists of experts from civil society, the unions and the mining community. It involved a full public consultation process, which also included meetings with interested parties in South Africa, Colombia, Indonesia and Russia, and in all the main coal-producing countries. The code transfers to suppliers the expectations of Bettercoal members as regards their practices in 4 key areas: operations, ethical commitment and transparency, human and labor rights, and environmental commitment.

Reference SDGs: 
Main actionsTargets
% of approved suppliers evaluated for safety aspects: introduction of evaluation criteria for health and safety aspects for the main product groups100% by 2019
% of approved suppliers evaluated for environmental aspects: introduction of evaluation criteria for environmental aspects for the main product groups100% by 2019
% of approved suppliers evaluated for human rights or business ethics aspects for the main product groups100% by 2019
Sustainability Plan 2017-2019