Case study: How Enagás promotes social, economic and environmental responsibility in its supply chain
As a global leader in the development and maintenance of gas infrastructures and the operation and management of gas networks, whose customers include transmission companies, shippers, distributors and the direct consumers in the market, dealing effectively with social, economic and environmental risks in its supply chain is a top priority for Enagás Tweet This!.
This case study is based on the 2017 Annual Report by Enagás 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/ 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.
Abstract
Abstract
As Spain’s main natural gas operator, Enagás currently works with 1,356 approved suppliers. Responsible supply chain management is, thus, highly important. In order to promote social, economic and environmental responsibility in its supply chain Enagás took action to:
- conduct supplier assessments
- apply a supplier approval process
- assess suppliers based on both internal and external evaluation
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) Enagás has identified;
- How Enagás proceeded with stakeholder engagement, and
- What actions were taken by Enagás to promote social, economic and environmental responsibility in its supply chain
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2017 Annual Report Enagás identified a range of material issues, such as ethics and integrity, infrastructure security, compliance, environmental accidents and incidents, management of climate change. Among these, promoting social, economic and environmental responsibility in its supply chain stands out as a key material issue for Enagás.
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:
Stakeholders must be consulted in the process s 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 Enagás engages with:
To identify and prioritise material issues Enagás engages in dialogue and collaboration with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Regulatory bodies (state, local and international) | · Regular meetings (face-to-face, telephone, email) · Corporate website |
| Investors (fund managers, rating agencies, analysts)
| · Regular meetings (face-to-face, telephone, email) · Corporate website · Shareholder Office · Free shareholder helpline · Electronic mailbox · Meetings with minority shareholders and analysts |
| Employees (professionals, social organisations) | · Regular meetings (face-to-face, email) · Corporate Intranet · AzulyVerde in-house magazine · Ráfagas e-bulletin · In-house communication campaigns · Ethics Channel · Workplace climate surveys and associated improvement plans · Interactive coffee for employees with the CEO |
| Customers (distributors, shippers, transmission companies, direct consumers in the market)
| · Account managers · Regular meetings (face-to-face, telephone, email) · Main Control Centre · SL-ATR · Spanish Gas System Follow-up Committee · Corporate website: SL-ATR 2.0 portal and SITGAS portal · Customer newsletter · Meetings with customers (Shippers’ day) · Customer satisfaction surveys and associated improvement plans |
| Partners (business, strategic business and management of companies) | · Coordinators of affiliates · Regular meetings (face-to-face, telephone, email) · Audit Committees |
| Media and social media
| · Regular meetings (face-to-face, telephone, email) · Corporate website · Permanent telephone service to the media · Media attention email inbox · Social media |
| Suppliers (critical and non-critical) | · Regular meetings (telephone, email) · Corporate website: supplier portal · Supplier attention email inbox |
| Financial institutions | · Regular meetings (face-to-face, telephone, email) |
| Associations and foundations (from the energy / gas sector, from social, environmental, ethical (sustainability) areas, in education and culture, health and development cooperation) | · Regular meetings resulting from participation in groups and forums (face-to-face, telephone, email) |
What actions were taken by Enagás to promote social, economic and environmental responsibility in its supply chain?
In its 2017 Annual Report Enagás reports that it took the following actions for promoting social, economic and environmental responsibility in its supply chain:
- Conducting supplier assessments
- Enagás carries out supplier assessments for the following:
- product and/or service quality
- financial situation, civil liability, economic dependence on Enagás
- health and safety
- ethics and compliance
- human rights
- environment: emission intensity, environmental impact, environmental safety
- Applying a supplier approval process
- Enagás implements a supplier approval process, based on the following requirements:
- capacity and resources to satisfy technical, quality, environmental and safety requirements
- compliance with the principles of the United Nations Global Compact and the Universal Declaration of Human Rights
- certifications for suppliers of specific products or services for quality, environment and occupational risk prevention
- Assessing suppliers based on both internal and external evaluation
- Enagás assesses its suppliers on the basis of both an internal and external evaluation. The internal evaluation includes:
- a questionnaire to assess reliability
- an electronic questionnaire on ESE (environmental, social and ethical) issues
- consultation on ethics and compliance
- an electronic questionnaire on climate change management
- environmental audits on construction sites
- documentary safety audits on suppliers carrying out work on installations
- The external evaluation includes:
- an electronic questionnaire on financial and ESE issues
- audits on financial and ESE aspects
Supporting the SDGs (Sustainable Development Goals)
Enagás’s actions for promoting social, economic and environmental responsibility in its supply chain correspond to the following SDGs:
- SDG 5 Achieve gender equality and empower all women and girls
- SDG 7 Ensure access to affordable, reliable, sustainable and modern energy for all
- SDG 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- SDG 9 Build resilient infrastructure, promote sustainable industrialization and foster innovation
- SDG 13 Take urgent action to combat climate change and its impacts
- SDG 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development
Which GRI Standards have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken
2) Disclosure 414-2 Negative social impacts in the supply chain and actions taken
78% 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.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, IEMA, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
References:
1) This case study is based on published information by Enagás, 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) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page
3) https://g4.globalreporting.org/Pages/default.aspx
4) https://www.globalreporting.org/standards/gri-standards-download-center/
Note to Enagás: 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.