Suppliers of change

Snam considers its suppliers to be an essential component of its business model and therefore maintains an ongoing dialogue with them with a view to responsibility, sustainable development and the production of value throughout the supply chain. In particular, its supply chain must ensure transparency and compliance with the criteria of sustainability and free competition. All activities are therefore geared towards sustainable and inclusive growth of the entire supply chain: Snam promotes good social responsibility practices towards its suppliers, such as respect for legality, combating corruption, ensuring safe working conditions and protecting human rights.

Suppliers are required not only to meet quality, price and reliability requirements, but also to share Snam’s commitment to protecting the principles of social and environmental responsibility. For this reason, Snam’s suppliers must formally undertake to conform their conduct to the contents of the Snam Code of Ethics and the Ethics and Integrity Pact (including subcontractors). In addition, in July 2020, Snam implemented a new process aimed at gaining a deeper knowledge of its suppliers, including a new category of verification in addition to the reputational one: “Compliance Verifications”, which involve carrying out analyses also on the financial soundness of suppliers (or potential suppliers), as well as on their suitability and adequacy, both from a technical point of view and in terms of HSEQ.

In addition, to further protect the integrity of its supply chain, Snam allocates all of its procurement through contracts that contain explicit sustainability-related clauses (ESG factors). Integrating suppliers into the procurement process and raising their awareness of sustainability issues is an essential part of Snam’s continuous improvement process, as the sharing of know-how, best practices and information guarantees the creation of value according to a common vision.

Following the decarbonisation objectives included in Snam’s Strategic Plan and the intention to take action to reduce Scope 3 emissions from the supply chain, systematic action has been taken to raise awareness of sustainability issues among suppliers. In particular, during the year, a number of questionnaires were administered in order to understand which initiatives to implement in the future with a view to reducing emissions: the questionnaires are aimed above all at mapping the impact on the climate of the supply chain (with particular reference to greenhouse gas emissions, also with a view to future involvement in actions aimed at further reducing the Group’s indirect emissions), to sound out suppliers’ knowledge of these issues and to map out good sustainability practices in the conduct of their activities.

The results show that land protection, health and safety, human capital development and anti-corruption are the sustainability issues on which suppliers are most active. This suggests that Snam’s suppliers pay attention to all the main areas relating to the environment, social and governance.