Increasing supply-chain sustainability
Eneco takes its social responsibility very seriously. This is why we strive to make the chain in which we operate to supply products and services to our customers as sustainable as possible from start to finish, in collaboration with our suppliers.
Eneco prefers to do business with suppliers who share our passion in the area of sustainability. We are convinced that a shared focus on quality and sustainability leads to optimisation and innovation.
Eneco’s aim is a completely sustainable procurement process. To this end, we strived to purchase at least 90% of our expenditures in 2015 from suppliers who meet our sustainability criteria. The final result was 93%.
Eneco’s core activities, the production, supply and distribution of energy and energy-related services, are linked to a number of different product and service supply chains.
In connection with our supply activities, we supplement the sustainable energy produced by our own production facilities with energy that we purchase on the market. In addition, we conclude purchase contracts with the owners of wind farms. The gas that we use for our gas plant is purchased on the market or by means of long-term purchase contracts. Our gas storage facility is used to guarantee the continuity of supply and to have more control over the price at which we purchase the gas.
Origin of our suppliers
Eneco identifies the following procurement categories:
- Assets, Equipment & Services (54%). This includes goods and services for the construction and maintenance of distribution networks and for the construction of wind farms, such as wind turbines, services provided by contractors and parts and materials.
- ICT and CPE&S (16%). This includes all ICT-related purchases and consumer robotics such as Toon and smart meters.
- Services (30%). These are all 'non-product-related' purchases, including marketing and communications, call centres, facilities and professional services.
Selection of sustainable suppliers
Suppliers, and the suppliers of our suppliers, play an important role in the realisation of our mission. In addition to ensuring that our own operations are sustainable, we also strive to guarantee sustainability in the entire supply chain.
Eneco assumes responsibility in the supply chains in which it operates by selecting suppliers on the basis of their performance in the area of sustainability in addition to factors such as quality, service and price. In connection with achieving our ambition, Sustainable energy for everyone, we require a certain level of corporate social responsibility from our suppliers.
This is recorded in the agreements included in our Supplier Code of Conduct, which must be signed by all our suppliers. In addition, we expect companies that supply products and/or services to Eneco to an amount of 10,000 euros or more on an annual basis, to achieve the level of Starter or higher in our Sustainability Scan. This scan is used to establish whether a supplier meets our criteria in areas such as:
- taking into account the product life cycle;
- taking into account recycling possibilities;
- prohibiting child labour;
- reducing the impact of the production process and logistics on the environment as much as possible.
Results in 2015
The instruments for measuring the sustainability of our suppliers have been further optimised in 2015. Our Supplier Code of Conduct was expanded and is now better in line with our One Planet Thinking ambition. Consequently, the Sustainability Scan will no longer be used in 2016. In order to add substance to the dialogue on sustainability with our suppliers, we have contracted an independent third party that carries out sustainability audits of our strategic suppliers. Based on these audits, we draw up action plans, which are primarily aimed at reducing carbon emissions.
We also carried out a CO2 Hotspot Analysis in 2015, which was used to determine the procurement category that is likely to generate the highest carbon emissions. The aim is to achieve a significant reduction of carbon emissions, in particular in relation to the identified hotspots. To start with, a pilot sustainability scan of the contracting sector, the largest carbon emissions hotspot, will be carried out in 2016.
Carbon emissions compensation and GOs
The following overview shows the countries in which we compensate carbon emissions or purchase Guarantees of Origin (GOs) in the form of credits and certificates.
Certificates, Guarantees of Origin
Belgium, United Kingdom, Norway, France, Italy, Austria, Finland, Denmark
Number of used GOs (GWh) 2015
Carbon emission reduction credits
These credits relate to various countries and projects. Our involvement varies from 'purchasing' credits to co-development of projects (for example in the form of prepayment, guaranteed price/ purchase, investing time and/or paying the costs related to registration of the project).
Verified Emission Reductions
Verified Emission Reductions (VERs) are credits for emission reductions achieved with projects that are not certified under the two project-based 'flexible mechanisms' of the Kyoto Protocol (i.e. Clean Development Mechanism (CDM) and Joint Implementation).
Eneco is engaged in a number of activities involving Verified Emission Reductions (VERs). VERs are generally used for voluntarily offsetting CO2 emissions by individuals, households, companies or other entities. Gold Standard, Verified Carbon Standard and Reducing Emissions from Deforestation and forest Degradation (REDD) are different VER-standards/types.
Countries where we obtain CDM credits are South Africa, Colombia, China, Thailand, Sri Lanka, Georgia, India and Bhutan.
Countries where we purchase GS credits are Ghana, China, India, Uganda, Taiwan, Turkey and Nepal.
We purchase VCS credits in Mexico.
Countries where we purchase REDD credits are Papua New Guinea, Zambia, Ghana, Mali, Kenya and Peru.