SUPPLIERS ENGAGEMENT PROGRAM: SUSTAINABILITY AS A STRATEGIC VALUE OF THE SUPPLY CHAIN

In recent years, sustainability has taken a central role in business strategies, evolving from initiatives focused on reducing carbon footprints and managing risks, to a key driver for creating value across the entire supply chain.

Estimates indicate that 90%* of the ESG (environment, social, governance) impact of a business is linked to its supply chain. 

Sustainability is set to drive significant changes and redefine the role of the purchasing function: from an activity focused on costs, efficiency and risk management, to that of a strategic partner capable of enhancing business resilience.

In 2024, Coesia launched a program in collaboration with EcoVadis to raise awareness among its suppliers on ESG topics. 

The main phases of the program include:

• mapping of potential ESG risks conducted in 2024 on approximately 11,000 partners, with 5% of them identified as high-risk suppliers;

• supporting suppliers, starting with high risk ones, in developing an improvement plan in 2025 to accelerate their progress towards ESG maturity;

• gradual extension of the program across the entire supply chain, adopting an approach based on priorities and continuous improvement.

The tools for change and the concrete actions implemented by Coesia to strengthen its commitment to sustainability are:

• inclusion of ESG assessments in the supplier qualification processes and the assignment of new contracts;

• launch of a dedicated ESG training program for all Group purchasing managers;

• publication of an updated Supplier Code of Conduct, which builds upon the ethical standards outlined in the Coesia Code of Ethics. The revised Supplier Code of Conduct defines clear guidelines that suppliers must adhere to in their commercial interactions with the Group. Partners wishing to continue collaborating with Coesia and sharing its commitment to sustainability are required to fully comply with the principles set out in the Supplier Code of Conduct, which is explicitly referenced in both orders and contracts.

Sustainability is no longer an option but a necessity to tackle global challenges and drive change. In this context, the Group’s procurement function serves as a strategic driver, capable of promoting sustainable practices and building resilience throughout the entire supply chain. 

*Source: "How to Drive Sustainable Supply Chains", World Economic Forum, 2020.