Relations with suppliers

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As stated in its Code of Ethics, Terna considers as priorities transparency and fairness in its relations with suppliers (2,314 contracted in 2011). Suppliers that satisfy conditions of non-involvement in illegal activities, compliance with safety standards, respect for human rights and organizational and professional solidity, are welcomed to compete on quality and price as equals. Procurement is normally carried out on the basis of the outcome of tenders that ensure equal opportunity and the utmost transparency to the participating companies. The objective of purchasing at the lowest cost for the level of quality and security required is always integrated with also checking the requirements of suppliers with regard to ethical, social, and environmental aspects.

In general, all procurement contracts include clauses regarding the supplier’s commitment to comply with Terna’s Code of Ethics and its 231 Organizational Model. 

HR2Since 2008 Terna has required suppliers to sign a specific “Integrity Agreement” obliging them to base their conduct to the principles of honesty, transparency, and fairness and committing them to avoiding conduct that could limit competition.

Furthermore, as of 2010, Terna introduced in its procurement contracts a specific clause that obliges suppliers to provide the Company with detailed information regarding all its sub-contracts, with the objective of preventing the risk of criminal infiltration through contractors, hires, supplies, or other kinds of services for the construction of the infrastructures of the National Transmission Grid (NTG), implementing the Memorandum of Understanding signed with the Finance Police.

With regard to tenders, one of the criteria provided for in the selection of suppliers is the UNI EN ISO 9001 quality certification as a guarantee of an efficient corporate management and organizational system. Terna also requires substantiated procedures adopted for the protection of the environment and of the health and safety of workers as a criterion in selecting its contractors. As part of the revision of the contractual documentation carried out in 2010, contracts now include clauses to ensure the utmost protection of the personnel used by contractors, and failure to do so will result in the termination of the contract.

During 2011, the focus on sustainability was expressed also in attributing technical points for awarding tenders.

The most important areas for Terna’s core business are supplies, contract work and services regarding electricity transmission, telecommunications and Information Technology. Only companies considered suitable on the basis of the supplier qualification system are included in the register of qualified companies and are allowed to take part in the tenders held by Terna for their respective product categories.

Scrupulous management of the ethical, social, and environmental aspects in compliance with Terna’s policies is a condition for inclusion in the register of suppliers for companies that belong to the product categories subject to qualification.