SUSTAINABLE VALUE CHAIN

The Iberdrola group ensures a fair, transparent and ethical value chain

 Regular supplier purchasing and management report 2019-2020 [PDF]

We are presenting the latest Purchasing Report of the company, which includes, among other information, its purchasing processes for equipment, materials, construction work and services processed through the Purchasing and Insurance Division, as well as the policies and procedures and sustainability principles that govern purchasing management and supplier relations.

 Infographic Contribution to sustainability [PDF]

Suppliers are strategic Stakeholders within the Iberdrola group, and as such as they are considered our business partners. The Purchasing and Insurance Division engages the supplier from the very first contact with the group and maintains a proactive attitude towards the external requirements and the development of new capacities. At all times, the company seeks to guarantee a fair, transparent and ethical value chain.

Purchases and Supplier management
CONTRIBUTION TO GROUP SUSTAINABILITY IN 2019
The high volumes of purchases made by the Iberdrola group drive growth in the countries where the company signs contracts, favouring business, industrial and social development in the regions by creating jobs along the entire supply chain.
FIGURES
€ 20,000 MN yearly
purchasing in equipment, materials, works and services.(1)
89 %
purchasing from local suppliers.
+ 22,000
suppliers.
13 days
of average supplier payment.(2)
(1) Including energy raw materials.
(2) The information has been prepared in accordance with Law 15/2010, of 5 July.
AWARDS
JOINED BY OUR VALUES
We promote and reward excellence in our suppliers,
celebrating the Global Supplier of the Year Awards. In 2019 a total of five local events were held and attended by almost 1,000. The prize for the best CSR performance was awarded at all of them.
DIALOGUE AND SATISFACTIONDIALOGUE AND
SATISFACTION
Transparent and comprehensive behaviour
8.18/10(*)
(*)Supplier Satisfaction Survey.
EXCELLENCE AND COMMITMENT
(sustainable management model for the supply chain)
WE ASSESS OUR SUPPLIERS' ESG CRITERIA
Our NEW assessment system is divided into the three main areas of sustainability:
Environmental, Social and Governance (ESG) criteria.
Information assessed
ENVIRONMENTAL (40%)
  • Existing policies
  • Management Systems
  • Greenhouse Gases
  • Biodiversity
  • Climate Change
  • Water Management
SOCIAL (30%)
  • Human rights
  • Diversity
  • Management Systems
  • Contribution to Society
  • Reporting and transparency
GOVERNANCE (30%)
  • Existing policies
  • SDG
  • Ethics and Compliance
  • Sanctions
  • Stakeholders
  • Supply Chain
WE PROMOTE THE COMPLIANCE OF HUMAN RIGHTS
FROM OUR SUPPLIERS
Online awareness module 'Together for sustainable development' accessible
to all suppliers, their employees and Stakeholders.
INNOVATION
Innovation program with suppliers
Access financing
Spin-off program
Iberdrola innovative purchasing
€~280 M
in R&D activities in 2019(*)
(*) Data at the close of 2019.
CHALLENGES
(Short and medium term)
1. Continue the digital transformation and change of model begun in 2019.
2. Conduct the 7th Supplier Satisfaction Survey.
3. Award the global prizes to the outstanding suppliers.
4. Draw up the action lines for the supply chain as part of the Iberdrola group 2020-2022 Sustainable Development Plan.
Procurement, driving and leading its own change
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