Purchasing fuel is a strategic activity for the Group, since it plays a leading role in guaranteeing the security and continuity of thermal energy production. The selection of fuel suppliers is done by assessing economic and financial aspects of the counterparties and the possession of the technical and commercial prerequisites. Suitable counterparties are subsequently included in specific Vendor Lists. Purchase contracts signed with such suppliers are subject to the rules adopted by the Group regarding the Code of Ethics and the Zero Tolerance of Corruption Plan, to which suppliers must adhere.

Fuel purchases 2017: around 4.7 billion euro (UM: mil euros)

GasCoalOil

(1) The 2016 figures have been restated due to the new calculation method applied.

In relation to purchases by sea from the international market, a check is made that suppliers are not on specific Black Lists of the UN, European Union and the US Office of Foreign Assets Control (OFAC), lists which respectively identify individuals or organizations connected with terrorist organizations, organizations subject to financial sanctions by the EU and so-called SDN (Specially Designated Nationals) organizations which are subject to sanctions by the United States for accusations, among other things, of terrorism or drug-trafficking. Finally, in order to mitigate the risks from fuel transport by sea, Enel has adopted a tool to assess and select the transporters used, known as vetting. Vetting is a recognized industry standard for oil transport, but for some years Enel and a small number of operators have started to apply the same methodology also in the sector of dry bulk transport (minerals, coal, cereals).

Bettercoal (bettercoal.org)

Enel, together with major European power utilities, is actively engaged in Bettercoal, a global initiative to promote continuous improvement of corporate responsibility in the international coal supply chain. Bettercoal has published a code of conduct based on existing and agreed social responsibility standards in the mining sector. It establishes in detail the guidelines that mining companies can refer to in defining their social, environmental and ethical policies. In addition to the growing presence of Bettercoal in several forums related to the sustainability of coal and the supply chain, the initiative has become an example of cooperation aimed at improving socially responsible practices in the supply chain.

The Bettercoal Code conveys to the suppliers members’ expectations regarding their practices with reference to four macro categories (management, ethical commitment and transparency, human and labor rights and environmental performance), promoting continuous improvement. For more information, visit www.bettercoal.org.