SUSTAINABLE VALUE CHAIN

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

Regular supplier purchasing and management report 2018-2019 [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 2018

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

€ 7.753 BN yearly

purchasing in equipment, materials, works and services⁽¹⁾.

85%

purchasing from local suppliers.

+23,300

suppliers.

15 days

of average supplier payment⁽²⁾.

⁽¹⁾ Excluding energy and fuel purchases.

⁽²⁾ The information has been prepared in accordance with Law 15/2010, of 5 July.

AWARDS

We promote and reward excellence in our suppliers,

celebrating the Global Supplier of the Year Awards. In 2018, Prizes were awarded in 12 categories, with the winning companies coming from eight countries.

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 FOR CSR

Ethics, compliance, diversity, respect for human rights, quality, environment and occupational safety in order to work to criteria that sets us apart when it comes to tendering or contracting with them.

CSR scoring classification level⁽¹⁾

71.5%

27.5%

1.0%

99%

Amount to A+/A suppliers

⁽¹⁾ RSC Score 2018. On the volume of purchase analyzed in 2018 (89% of the total purchase of the group): "A +" suppliers above average. "A" suppliers within the average. "B" suppliers below average.

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.

Countries

+2,700

Suppliers

Languages

INNOVATION

Innovation program with suppliers

Access financing

Spin-off program

Iberdrola innovative purchasing

€270 M

in R&D activities in 2018^*

^(*) Data at the close of 2018.

CHALLENGES

(Short and medium term)

1. Improvement of the supplier sustainability assessment model (currently CSR scoring) and actions to increase the percentage of our purchasing volume awarded to suppliers whose Social Corporate Responsibility has been analysed.

2. Review of the supplier carbon footprint measurement methodology from suppliers to assess Scope 3.

3. Preparation of a protocol for company social auditing at the first level of contracting.