Relations with suppliers

As stated in its Code of Ethicsi, Ternai puts transparency and fairness first in its relations with suppliers (2,316 contracted in 2010). Suppliers that satisfy conditions of non-involvement in illegal activities, observance of safety standards, respect for human rights, and organizational and professional solidity are welcomed to compete on quality and price as equals. Procurement is normally carried out on the basis of the outcome of tenders that ensure equal opportunity and the utmost transparency to the participating companies. The objective of purchasing at the lowest cost for the level of quality and security required is always integrated with also checking the requisites of suppliers with regard to ethical, social, and environmental aspects.

In general, all procurement contracts include clauses regarding the supplier’s commitment to observe Terna’s Code of Ethics and its compliance program pursuant to Legislative Decree 231/01 .    

Since 2008 Terna has required suppliers to sign a specific “Integrity Agreement” obliging them to conform their behavior to the principles of honesty, transparency, and fairness and committing them to avoiding behaviors that could limit competition.

Furthermore, implementing the Protocol of Understanding signed with the Finance Police in 2010 Terna introduced in its procurement contracts a specific clause that obliges suppliers to provide the Company with detailed information regarding all its sub-contract, with the objective of preventing the risk of criminal infiltration through contractors, hires, supplies, or other kinds of services for the construction of the infrastructure of the National Transmission Grid (NTG)i.
With regard to tenders, one of the criteria provided for in the selection of suppliers is the UNI EN ISO 9001 quality certification of 2008 as a guarantee of an efficient corporate managerial and organizational system. Terna also requires documented procedures adopted for the protection of the environment and of the health and safety workers as a criterion in selecting its contractors.       
The most important areas for Terna’s core business are supplies, contract work, and services regarding electricity transmission, telecommunications, and information technology. Only companies considered suitable on the basis of the supplier qualification system are included in the register of qualified companies and are allowed to take part in the tenders held by Terna for their respective product categories.

Scrupulous management of the ethical, social, and environmental aspects in keeping with Terna’s policies is a condition for inclusion in the register of suppliers for companies that belong to the product categories subject to qualification.    

In 2010, 48% of the suppliers with contracts amounting to more than 500,000 euro had gone through the qualification process, an increase over the 39% of the previous year.