PRINT
The development of a responsible and sustainable supply chain is part of a broader corporate vision that actively enhances and protects social and environmental responsibility, fully integrating them into the strategic guidelines.
Our suppliers are an active part of this strategy and they are asked to share the Purchasing Policy, the primary goal of which is to affirm the Group’s commitment to strengthening the development of solid and long-lasting relationships with its partners in order to pursue a common goal of sustainable development together.
The core aspects of our Purchasing Policy are:
The awareness of the supply chain's strategic nature and the need to coordinate a vast and diversified network of suppliers make the search for long-term partner relationships, characterized by transparency, collaboration and mutual respect, essential.
In order to strengthen the link with suppliers and transmit to them our values, principles and responsibilities, we have drawn up the Suppliers’ Code of Ethics, approved by the Board of Directors, which focuses on three environmental, social and governance (ESG) issues:
The importance of the relationship with suppliers is underlined by the fact that our product is highly customized since it is designed and engineered to the specific needs of the individual customer.
This entails active management of make-or-buy procurement strategies for every single phase of development and implementation of the naval job, while maintaining constant synergy with our partners in the continuous search for high value added solutions.
As regards the shipyard, approximately 80% of the finished product is made with the contribution of suppliers: we work de facto as a system integrator, taking responsibility for the shipbuilding project as a whole.
For us business integrity and the ethical and professional honesty and fairness aspects tied to it are a constant guideline. We are aware that corporate reputation is a strategic asset that should be valued and protected, also so as not to compromise the trust placed in us by our stakeholders. To this end, during the qualification process we implement a risk-based verification model, including, for cases considered at higher risk, resorting to enhanced due diligence, also extended to the ultimate beneficiary, as to ensure that our supply chain leans towards more extensive compliance with regard to anti-money laundering, contrasting the financing of terrorism, international sanctions, as well as the highest standards of prevention and combating of corruption, also if there are changes in the relationship with the supplier, in line with the Company’s Anticorruption Policy.
Given the current historical moment and the importance of the supply network for the shipbuilding sector, we are committed to supporting our supply chain from a financial perspective as well.
With the aim of facilitating access to credit for our suppliers, we have entered into a series of reverse factoring agreements with some of the leading Italian financial operators, providing the supply chain with the possibility of monetizing receivables due from the Parent Company and/or its main subsidiaries before their natural due date, at predefined economic conditions.
We have also transformed existing agreements with some credit institutions into ESG-linked reverse factoring agreements to offer an immediate return to suppliers who have already undertaken a sustainability path and to raise awareness of the supply chain on the importance of this issue, aligning the various stakeholders on common ESG objectives throughout the supply chain.
Supplier qualification and monitoring process
Management and the continuous improvement of a pool of trusted suppliers are essential in order to achieve the goals we have set for ourselves in economic and sustainability terms.
This is why we have developed a rigorous qualification and performance monitoring process of the performance of strategic suppliers, based on the evaluation of economic, technical, social, environmental and reputational aspects (with particular reference to integrity and the fight against corruption). To make the oversight active and effective, the maintenance of the expected requirements is verified and renewed even in case of detected changes in the relations with the supplier, such as developments in strategic relevance and changes in company structure.
We believe that the selection of innovative and reliable suppliers, willing to build together a common success, starting from a high value-added, commitment and flexibility are the essential requirement for a lasting relationship.
We monitor the supply chain using a life cycle management approach to reduce the environmental and social impact of a product or service over its entire lifetime to a minimum. In particular, sensitivity towards and respect for the environment are spread along the whole production chain, and this has led to increasing exchanges of information and documents with suppliers.
The main problems are examined through cross-involvement within Supplier Observatory the body that gathers the different functions and departments.
The Observatory closely monitors critical suppliers and is called upon to make decisions after examining these critical issues, which may lead to the identification of improvement plans for the individual supplier and, where necessary, to the definition of timescales and methods for phasing out the supplier.
WHICH OBJECTIVES DO WE HAVE ON THIS TOPIC?
SUSTAINABLE SUPPLY CHAIN: 2018-2022 Sustainability Plan objectives and targets
| Commitments | Objectives | Description/ Target | Benefits | Status | Timetable |
|
Promotion and support of a responsible supply chain that shares our values and is based on long-lasting relationships founded on integrity, transparency and respect |
Code of Ethics for suppliers |
Draft a document containing a set of rules, principles and conduct in terms of sustainable procurement, in compliance with international standards and best practices |
Develop a sustainable supply chain, improve positioning on the market and image. Guarantee coverage of risks associated with sustainability |
Fincantieri has drawn up the Suppliers' Code of Ethics approved by the Board of Directors of Fincantieri S.p.A., a document that defines the values and principles of conduct that suppliers must refer to and adopt in order to pursue a development that integrates competitiveness, environmental sustainability and social responsibility, capable of establishing a long-term partnership based on integrity, honesty and mutual transparency. |
2019 |
|
Organise meetings and opportunities for dialogue with suppliers as well as training on sustainability issues |
Send a questionnaire on sustainability issues (and organise meetings) to suppliers identified as priority/strategic
Send the questionnaire to 100% of strategic suppliers |
Increase engagement with suppliers in order to identify best practices and common initiatives on sustainability issues |
During 2019, we organized our first sustainability meeting session with the participation of 23 strategic suppliers. Sustainability has steered these meetings, during which topics such as the Sustainability Plan and related objectives were presented, with particular emphasis on those concerning the supply chain. Moreover, in order to increase our partners’ awareness of and involvement in social and environmental issues, a fact-finding questionnaire was sent out in 2019 to a panel of 75 suppliers considered significant, with the aim of studying the actions and the governance model adopted. |
2019 |
|
|
Development of the supplier engagement path through workshops on sustainability issues |
Organize workshops involving a panel of strategic suppliers to share a path of sustainability, training and discussion on ESG issues
|
Share and develop common initiatives on sustainability issues. Identify existing best practices with a view to embarking on a shared growth path |
In 2020, a remote workshop on sustainability issues was developed and 54 strategic suppliers participated. |
2020 |
|
|
Implementation of an action plan to promote the dissemination of the Suppliers' Code of Ethics |
Define an action plan to disseminate the Suppliers' Code of Ethics that will follow these stages: 2020: • Launch the request for suppliers' of Fincantieri S.p.A. to adhere to the Suppliers' Code of Ethics • Review of sustainability audit checklists for the implementation of the criteria on compliance with the Suppliers' Code of Ethics 2021: • 1st half: Testing on a sample of 5 suppliers audited using the revised sustainability audit checklists • 2nd half: Monitoring the adoption and verification of compliance with the Code by 100% of audited suppliers
100% active suppliers of Fincantieri S.p.A. |
• Ensure the dissemination of the principles, values and responsibilities of the Company through the acceptance and adoption of the Code • Contribute to the development of a responsible and sustainable supply chain • Ensure Environmental, Social and Governance (ESG) risk coverage |
In 2020, the phases of requesting Fincantieri S.p.A.’s suppliers to comply with the document and of revising of the sustainability audit checklists for the implementation of the relevant criteria. In 2021, a pilot test n a sample of 5 audited suppliers was carried out though a sustainability checklist and the monitoring and verification of the adoption of compliance with the document of 100% of suppliers of Fincantieri S.p.A. considered strategic and subject to audits during the year. |
2020-2021 |
|
|
Launch of the Sustainable Supply Chain project |
Launch a Sustainable Supply Chain project in order to integrate sustainability criteria into the supply chain and ensure adequate risk management
The activity will be divided into the following stages: • Evaluation of processes based on ESG criteria within the quality and supplier management systems • Comparison with market benchmarks • Identification and mapping of ESG risks in the supply chain • Development of a system to collect information and mapping of ESG certifications • Definition of supplier monitoring KPIs, also according to a sustainability logic • Identification of areas of action and preparation of the improvement plan
100% of strategic suppliers registered in the Supplier Register of Fincantieri S.p.A. |
• Identify and manage ESG risks in the supply chain • Monitor any critical aspects of the supply chain through specific KPIs • Mitigate the reputational risk associated with supply chain management • Increase the supplier base's level of knowledge regarding to sustainability issues |
A Sustainable Supply Chain project was launched with the aim of integrating sustainability criteria into the supply chain and ensuring an adequate risk control. During 2021, activities of analysis of the Environment, Social and Governance (ESG) criteria were carried out within the context of the quality and supplier management system, furthering the analysis through a market benchmark, collection of ESG information and certifications, risk analysis, definition of KPIs for monitoring and of an action plan. |
2021 |
|
|
Deliver a training course on sustainability and responsible procurement principles to employees who interact directly with suppliers |
Develop an e-learning training module on sustainable procurement for employees who interact directly with suppliers in Italy
100% of Italian buyers |
Raise awareness and train staff on sustainability issues in order to improve relations with suppliers on these specific topics |
A training course on sustainable procurement was developed for procurement staff working for the Group's main Italian subsidiaries. The total length of the training was of 7 hours for each resource involved. The delivery reached the set target of 100% buyers from Fincantieri S.p.A. and its main subsidiaries and recorded an excellent level of appreciation and participation. |
2022 |
AchievedHuman Rights: 2018-2022 Sustainability Plan objectives and targets
| Commitments | Objectives | Description/ Target | Benefits | Status | Timetable |
|
Commitment to creating the socio-economic conditions to ensure respect for human rights throughout the value chain |
Conduct annual audits to assess and monitor the most critical suppliers in terms of human rights, health and safety and the environment |
Conduct annual audits at suppliers' premises on behalf of the organization (second party audit) a tool for an informed management of the supply chain
100% of Fincantieri S.p.A.'s priority suppliers (120) by 2023, of which at least 40 per year. |
Ensure that the level of compliance is aligned with Fincantieri's standards and observance of a sustainable supply chain |
In 2022, despite the maintenance of the pandemic emergency status, the target of 40 sustainability audits per year at supplier sites was successfully achieved. From 2019 to 2022, we were able to carry out 113 audits on those of priority suppliers to Fincantieri S.p.A.. The seven audits that were not carried out due to the pandemic were included in the target for the next 2023-2027 Sustainability Plan. |
2023 |
Work in progressRelated Topics
Economic Responsibility
Economic value for stakeholders
The Bridge for Genoa
Economic satellite businesses
Business Model