The qualification process and the monitoring of suppliers

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The qualification process enables Terna to assess suppliers with regard to their compliance with the law, their technical, organizational, and economic solidity, and their respect for the ethical, social, and environmental requirements of Terna’s policy as expressed in the Company’s Code of Ethics.

Among other things, the qualification requirements include:

  • the application of conditions regarding rules and wages that are not lower than those provided for by the collective-bargaining agreements applicable for the same kind of work;
  • the application of laws regarding environmental protection and occupational safety;
  • the existence of substantiated procedures, adopted for the protection of the environment and of the safety and health of workers.

The purpose of the monitoring is to ascertain whether the requirements are maintained throughout the three years in which the qualification is valid.

Such monitoring includes the use of IT systems to continuously screen information such as, for example, reports by the Company’s departments, external ones, or news reported by the media. In particular, the vendor rating info sheets written by the engineers who locally supervise the construction sites of qualified companies are used to analyze the latter’s performances monthly, enabling Terna to promptly take action and disseminate the information recorded among its Operating Areas. During 2011, the Company monitored 749 supplier performances.

During 2011, in compliance with the laws on the waste tracking system – SISTRI – a new merchandise sector was created named “Waste management” that defines the technical-quality requirements that business must have to be qualified and included in the supplier register. This activity regards collecting, transporting, storing, recovering and disposing of special hazardous and non-hazardous wastes produced by Terna.

In line with the objective of continuously improving qualification, the last three years marked a consistent increase of the sectors and qualified businesses, as well as of the monitoring conducted.

In the event their conduct is not in compliance with the qualification requirements, suppliers may be warned or temporarily suspended from the supplier register. In the most serious cases, cancellation is provided for. Following an analysis of their noncompliance, in 2011, 2 suppliers were temporarily suspended while none were cancelled from the supplier register. The entire company qualification process – from the initial qualification to the monitoring of actual conduct and to the infliction of sanctions – is entrusted to Terna’s Company Qualification Committee, which consists of eleven members of the Top Management and an independent external Chairman with recognized legal and technical expertise.

 Procurement and suppliers 2011 2010 2009
 N. of suppliers under contract 2,314 2,316 2,308
 Procedures adopted for awarding contracts (1)      
 European tenders 51 53 58
 Non-European tenders 35 35 27
 Without tender 14 12 15
 Qualification      
 Companies qualified for entry in supplier register (2) 353 260 180
 Supplier categories subject to qualification 41 40 36
 % purchases from qualified suppliers (3) 43 48 39
 N. of monitoring 749 593 263
(1) This is the percentage on amounts awarded excluding non-traditional activities. (2) Considering also the qualified companies that are associated in consortiums, in 2011 the total companies qualified for entry in the supplier register would equal 372. (3) Only orders with amounts of over 500,000 euro

Sustainability in criteria for awarding tendersEN18

Vehicle Fleet Tender

As part of the tender for purchasing the operational vehicle fleet for awarding the technical points also included the best vehicle performance based on eco-sustainability. The aspects rewarded included criteria regarding Antipollution Approval (EURO 4/EURO 5), Consumption – C (liters/100Km) and Emissions – E (CO2 (g/Km). The companies awarded the tender were also requested to provide a forestation certificate for total neutralization of the pollution produced from the total of the vehicles included in the tender.

Gara Autoparco

Ticket Tender – Meal plan

Awarding the tender for supplying tickets and meal plans included among the aspects rewarded implementing ecosustainable Projects.

Supplying furniture and furnishings

Awarding the tender for supplying furniture and furnishings is based on the most competitive offer. The technical points will be awarded on the basis, among others, of demonstrated “Ecosustainability”, including in the technical documentation envelope the following documents: ISO Certifications, FSC Certification, Ecologic Panel Certification, etc.

Tender for architectural planning and designing of the new power station in Capri

In areas having a particular landscape value, Terna specifically focuses on the environmental impact and on installing its works in the ecosystem.

Within this context, the tender for the architectural planning of the new power station in Capri was of particular interest and all the most prestigious architectural firms were invited to participate.

The project’s predominant requirements that were rewarded, were “the project’s reduced landscape impact” and the “completeness and analytical aspects of the landscape impact analysis”, in addition to aesthetic and functional aspects. 

Special attention was devoted to selecting materials and details proposed, that not only met specific architectural choices, but were also aimed at reducing building site time frames as well as maintenance.

Even the choice of the “greenery”, that is the second natural element on which the project is inspired, included typical vegetation belonging to the local ecosystem that favored the use of evergreen shrubs and plants to guarantee the constant mitigation effect during the year and reduce maintenance activity. The planned irrigation system allows optimizing the use of water without waste.