Circular economy initiative for ENEL suppliers engagement

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NEED

Enel is a major player in the energy sector. A huge supply chain is needed to ensure optimal performances which are a key requirement to stay on the cutting edge in the market.

Energy sector can lead the transition towards circular economy models relying on renewable and sustainable technologies for power production. In such a framework the Procurement plays a key role in rewarding suppliers that implement sustainable practices to deliver goods and services; this rewarding scheme can start only with a robust and validated metric for sustainability assessment laying behind it.

For this reason, in early 2018, Enel launched the Circular economy initiative for Enel suppliers engagement. The project aims at boosting circular economy along the supply chain to ensure a continuous improvement which bring benefits either to suppliers and buyers. Suppliers are asked to obtain an additional qualification based on sustainability criteria.

RESPONSE

LCE supports Enel in developing the metric which feeds the qualification process. The LCA methodology as been used to map selected sectors in the Enel portfolio from environmental point of view. The outcome is a comprehensive sustainability overview of the sector state of the art, which Enel can use as a benchmark to set threshold to be met by suppliers.

To ease suppliers participation to the project, an online platform, the Enel sustainability qualification tool, has been developed. This hub can be used by suppliers from all over the world to provide environmental information according to LCA outcomes.

OUTCOMES

In early 2019 Enel will publish 5 Qualification Protocols for the sectors involved in the first wave of the initiative. These third-party certified documents contain guidelines about which information the suppliers have to provide to obtain the qualification. More information are available HERE.

The online webtool will store all the information and will be then used to deeper analyse the supply chain from sustainability perspective to spot out some improvement areas.

GEOGRAPHICAL COVERAGE

  • Enel is a global energy group and its supply chain is widely spread: suppliers engaged in 2018 edition of the project are located worldwide. Same coverage will occur in future iteration of the initiative.