Ansaldo STS has conducted an initial mapping of its supply chain with respect to compliance with Environmental, Social and Governance (ESG) criteria.

Indeed, the standard purchase order model includes general supply conditions, compliance with the code of ethics and, when vetting new suppliers, Ansaldo STS gathers information on their compliance with quality, hygiene, health and safety in the workplace standards and their environmental policies, by requiring ISO 9001, ISO 14001 and OHSAS 18001 certification (see Vetting and eligibility of suppliers). Ansaldo STS applies these characteristics as preferential requisites and they are considered in the supplier’s eligibility score. The mapping showed:

SUPPLIER MAPPING201620152014
Number of suppliers in the register by direct and indirect product types (2010-2016) 15,025 17,059 16,112
Total active suppliers 3,250 2,983 3,072
Number of suppliers covering 80% of the value of orders 190 192 203
Qualified suppliers (Classes A and B) 124 166 198
of which:      
ISO 14001 certified suppliers 17 13 30
OHSAS 18001 certified suppliers 15 7 17

Mapping is the first step in the definition of the specific sustainability policy for the supply chain. The main guidelines of this policy will be:

  • audit activities on site suppliers, including a review of sustainability performance, with technical controls on products for suppliers of materials;
  • collaboration between Ansaldo STS and suppliers in product design;
  • activities to inform suppliers about sustainability issues;
  • the extension of annual monitoring activities to suppliers classified in the A category.

Monitoring of social and environmental impact

Since 2014, Ansaldo STS has been involved in testing TenP - the sustainable supply chain self-assessment platform, designed by the Global Compact Network Italy Foundation (of which Ansaldo STS is a founding member) to assist member companies to collect information on their suppliers’ sustainable performance. The intention is to identify common solutions to improve the supply chain’s sustainability.

As part of this project, Ansaldo STS selected an accredited number of suppliers which it invited to complete an online survey about sustainability issues such as respect for human rights, labor conditions, the environment and anticorruption.

In 2016 and 2017, it will analyze the feedback of this survey and define an action plan to improve sustainability.

The digital platform

In 2018, the Procurement digital platform will be implemented, which will bring benefits in terms of:

  • environmental sustainability, as the tool will eliminate a portion of printed copies that are made for orders and contracts, through digital exchange of documents and digital signature;
  • risk management, as the use of the platform will ensure compliance with company procedures;
  • business continuity, as it will enable the monitoring of the suppliers’ performance and will reduce the risk of business disruption as digital data repository;
  • risk mitigation for the financial assessment of suppliers.