The case for CSR/ Sustainability Reporting Done Responsibly


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Home / case studies / Case study: How Atlantica promotes sustainability across its supply chain

Case study: How Atlantica promotes sustainability across its supply chain

With a large majority of its business in renewables, Atlantica is one of the few companies worldwide with a strategy and business model focused on sustainable infrastructure, to lead the world’s energy transition towards clean energy and sustainable water. Atlantica has a Supplier Code of Conduct, and expects its suppliers to adhere to it and commit to operating to the highest standards of corporate conduct.

This case study is based on the 2019 ESG Report by Atlantica published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

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Atlantica seeks to select its suppliers preferentially, based on the social and environmental impacts of their products or services  Tweet This!, so as to effectively promote sustainability principles among them. In order to promote sustainability across its supply chain Atlantica took action to:

  • implement a Supplier Code of Conduct
  • promote compliance

What are the material issues the company has identified?    

In its 2019 ESG Report Atlantica identified a range of material issues, such as occupational health and safety, economic and financial performance, asset management, climate change, GHG emissions. Among these, promoting sustainability across its supply chain stands out as a key material issue for Atlantica.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Atlantica engages with:

To identify and prioritise material topics Atlantica engaged with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Employees

 

 

 

·      Face-to-face meetings video or phone calls

·      ESG Report

·      Website Content

·      Whistleblower Channel

·      Social Media

·      Internal Intranet Communications

·      Internal Training with Q&A

Suppliers ·      Face-to-face meetings video or phone calls

·      ESG Report

·      Website Content

·      Whistleblower Channel

·      Social Media

Customers ·      Face-to-face meetings video or phone calls

·      ESG Report

·      Website Content

·      Whistleblower Channel

·      Social Media

Business Partners ·      Face-to-face meetings video or phone calls

·      ESG Report

·      Website Content

·      Whistleblower Channel

·      Social Media

Local Communities

 

·      Face-to-face meetings video or phone calls

·      ESG Report

·      Website Content

·      Whistleblower Channel

·      Social Media

Investors

 

 

 

·      Face-to-face meetings video or phone calls

·      ESG Report

·      Website Content

·      Whistleblower Channel

·      Social Media

·      Earning Presentations with Q&A

What actions were taken by Atlantica to promote sustainability across its supply chain?

In its 2019 ESG Report Atlantica reports that it took the following actions for promoting sustainability across its supply chain:

  • Implementing a Supplier Code of Conduct
  • Atlantica has a strong commitment to operating to the highest standards of corporate conduct and seeks to work with third parties who operate under principles that are similar to those set in its Code of Conduct. Accordingly, Atlantica has a Supplier Code of Conduct that it expects its suppliers to adhere to. Atlantica includes its requirements in its contractual arrangements with suppliers and understands that some suppliers may face significant challenges in immediately meeting every aspect of the Code. In this sense, Atlantica’s commitment is also to working together over time to help those suppliers achieve adherence with this Code.
  • Promoting compliance
  • In 2019, Atlantica reinforced the environmental certification of its suppliers through a two-step process:
    • Internal homologation process: Atlantica’s internal compliance team reviews the suppliers’ financial information, environmental initiatives, tax compliance, and bank account certificates, etc.
    • External homologation process: Atlantica has engaged the services of an external provider, Ecovadis, to evaluate its key suppliers in terms of: (i) environment, (ii) fair labour and human rights, (iii) ethics, and (iv) sustainable procurement. Ecovadis applies an in-house methodology built on international Corporate Social Responsibility (CSR) standards including the Global Reporting Initiative, the United Nations Global Compact, and the ISO 26000 and issues a rating per supplier. This evaluation is renewed on a yearly basis enabling Atlantica to periodically monitor and pinpoint suppliers’ improvements in terms of i) environment, (ii) fair labour and human rights, (iii) ethics, and (iv) sustainable procurement. In 2019, Atlantica certified, through Ecovadis, suppliers representing approximately 60% of its annual expenses.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 414-1 New suppliers that were screened using social criteria

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified & IEMA recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified & IEMA recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

  • Identify your most important impacts on the Environment, Economy and Society
  • Begin taking solid, focused, all-round sustainability action ASAP

 

References:

1) This case study is based on published information by Atlantica, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Atlantica: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.