“Supplier selection is based on evaluating the quality and economic viability of services, technical and professional qualifications, respect for the environment and a high degree of social commitment, in compliance with rules prescribed by the relative standards and procedures”. (Hera Group Code of Ethics, art. 48)

Since 2006, the most economically advantageous method of bidding (detailed by art. 83 of Legislative Decree 163/2006) has been the principal method used by Hera Group to select suppliers: this involves assigning points during the evaluation of the quality of supplied goods, workplace safety and the suitable management of environmental factors. In 2008 the Group defined Guidelines for the selection of suppliers, detailing sustainability criteria consistent with the principals established in the Hera Group Code of Ethics.

In 2009 operational instructions were developed aimed at defining sustainability criteria for various product categories when purchasing goods, services and labour. The operational instructions established, based on the total amount and critical issues of each contract, a minimum number of sustainability criteria to consider when selecting a supplier. Contracts with an elevated impact on the environment, workplace safety and the quality of services provided to customers as well as long-term or large contracts were considered most critical.

Key environmental criteria included those concerning atmospheric emission and noise management, prevention, the reuse and recyclability of waste, energy efficiency and reduced use of dangerous substances. Social criteria included the adoption of a specific Code of Ethics, the inclusion of handicapped and disadvantaged employees and accident prevention while service criteria are determined by evaluating the quality of materials, work vehicles and equipment, professional qualifications and skills, technical services and productivity.

Of note among the tenders managed during the last two years was the contract for canteen services (launched with a new operator in April 2009), particularly as concerns sustainability criteria for technical elements. These elements were assigned 60 points out of 100 with reference to sustainability criteria such as the variety of the menu, organizational capacity, the use of raw materials from local suppliers, the sustainability of the cafeteria service (water and energy conservation, waste prevention and waste sorting, the promotion of tap water use) and the quality of the equipment and environment in corporate cafeterias.

In 2009 a considerable increase was also recorded in the amount of goods ordered from certified suppliers. This was due both to direct actions such as including certification as a mandatory requirement in calls for tenders and during the supplier qualification phase, as well the development of greater awareness within the business system concerning the importance of qualitative growth in competitiveness. As compared with 2007, a significant increase was recorded in the number of suppliers holding quality and environmental certifications (from 17% to 61%). Suppliers holding workplace safety certifications also doubled as compared with 2007 and those with social certifications tripled.

For additional information see the 2009 Sustainability Report