There are 12,000 EDP suppliers in dozens of countries, across all areas of the group. The EDPartners program embodies their importance in EDP's strategy, a common journey that benefits society as a whole.
Did you know that there are almost as many EDP partners and suppliers as there are employees? There are more than 10,000, in dozens of countries, mainly Portugal, Brazil and Spain. The suppliers are involved in all kinds of activities linked to the group and are essential to EDP's strategy, but also to the communities and countries where they operate, being mainly local partners rather than external suppliers.
The impact of the relationship between EDP and its suppliers goes far beyond commercial relations, and the EDPartners program ensures that joint commitment translates into sustainable growth for all. From registration and qualification to performance evaluation; from the application of ESG principles (Environmental, Social and Governance) to listening, training and sharing knowledge at conferences, the EDPartners journey is a commitment that brings together the entire Procurement area.
"The EDPartners program emerges as a part of EDP's strategy, aware that our success will only be possible through the development of partnership ties with our supply chain," explains Carlos Mota Pinto, director of the Global Procurement Unit (UPG). EDP is a leader in the energy sector and has a clear vision of its role in society and of what the contact with its stakeholders should be. Through EDPartners, according to Carlos Mota Pinto, "EDP strengthens relationships and identifies areas for improvement and development, in collaboration with its partners, by sharing good practices, establishing joint projects and aligning processes".
Sustainability is a key driver in relations with partners
Because the energy transition must be a clear objective and choosing Earth a common purpose, promoting sustainability in the relationship with suppliers is a strategic vector of EDP's business. It is based on establishing relationships of trust and partnership, guided by shared principles such as ethics, transparency and cooperation. Always striving for excellence in what is done, in how it is done and in the future potential to do it. EDP Group's management approach has sustainability as a core value and the supply chain is capable of upholding this ambition.
"We believe that by creating opportunities for our suppliers, we maximize our contribution to society by sharing values such as innovation, prevention and safety, and sustainable development."
EDPartners Journey: a holistic view of the supply chain
Coordinated by the Global Procurement Unit, the EDPartners program takes a holistic approach to supplier management, vital for ensuring sustainability and competitiveness. Its journey encompasses Registration, Qualification, ESG Assessment, Contractual Performance Evaluation and Listening and Engagement. A continuous improvement of the supply chain through the identification and development of all areas of action involving EDP's relationship with suppliers.
Embodying the defined sustainability strategy, EDPartners emerges as a structured and systematic program, whose application and integration facilitates the selection of suppliers and consequently the development of the supply chain.
1. Supplier Registration System
A single platform concentrates all the relevant information for the Procurement activity, bringing together all types of financial, economic, environmental and social data - information and documentation entered by suppliers - which allows a risk profile to be obtained in real time for different situations. Decision-making is quick and based on quality information, properly validated by third-party sources.
For EDP, this approach to risk management translates into the creation of various scores (financial, operational and compliance) and alerts, the results of which are obtained by analyzing the information submitted by the supplier. For the supplier, it means having a single platform for sending documentation to EDP. In addition, the possibility of accessing an ESG Roadmap provides them with knowledge of their level of alignment with the EDP Group's sustainability objectives for the supply chain, making it easier to continue or strengthen their overall performance.
2. Supplier Qualification System
This platform helps assess the profile, capacity and suitability of the supplier and its supply of goods and services for EDP group's procurement needs. Various technical, environmental and economic-financial criteria are determined and published, promoting the selection of suppliers through principles of equality and transparency for candidates.
If a specific EDP Procurement category requires certain parameters, the Supplier Qualification System (SQF) allows only suppliers who meet these requirements to be selected for negotiation. And knowing the SQF criteria in advance enables suppliers to adapt their actions or characteristics to this system.
3. ESG Assessment
Maintaining compliance with sustainability targets based on ESG criteria is one of EDP's major goals, an essential pillar for a strategy focused on the energy transition, on choosing Earth at all times, leaving no one behind. To this purpose, it is essential that suppliers, regardless of their size or field of activity, are increasingly aligned with these principles, enshrined in the EDP Supplier Code of Conduct.
The ESG Assessment program consists of scheduled audits at the supplier's premises, to verify the information entered and draw up improvement plans. ESG Assessments are an important mechanism for involving and sharing new objectives and good practices in the supply chain.
4. Contractual Performance Evaluation
To ensure the continued good performance of suppliers and the close relationship with EDP, contractual measurement and quantification is carried out through the document Sustainability in the Supply Chain - Procedures Protocol. This model assesses both sustainability and operational criteria, seeking to keep them aligned with EDP's global vision and strategy.
The decentralized process makes it possible to motivate contract managers, with the aim of strengthening involvement and partnerships with their supply chain. Together with the suppliers, with specific plans and verifiable results, areas for improvement and development are identified, the ones that will have a positive impact on the entire value chain.
5. Listening and Involvement
EDP Group recognizes that partners are fundamental to increasing the ambition of sustainability, with success being a common catalyst, a multiplier of positive results. EDPartners encourages the sharing of good practices, initiatives and the development of projects, based on the alignment of processes and the pursuit of excellence. Various initiatives seek to find out the suppliers' vision of the way EDP works in different areas and to identify new opportunities for further analysis and possible implementation. Training or information sessions - whether individual, sectorial or EDP-wide - also ensure that cooperation is strengthened.
This fifth phase of the journey includes the EDPartners Talks, informal conversations that provide valuable insight into EDP's operation in several areas, such as enhancing competitive advantages and knowledge of EDP's strategic plan or innovation in processes and negotiation. More specifically, the EDPartners ESG Talks are sharing sessions that help to identify the ESG maturity level of suppliers, allowing us to learn about good practices that already exist and to further promote sustainable purchasing. "By aligning ourselves with the maturity levels of our suppliers, addressing the growing ESG concerns of the market, we strive to produce mutually beneficial initiatives to accelerate a more sustainable and resilient supply chain," explains Margarida Martins de Almeida, Suppliers and Sustainability manager. EDP's goal is to have 100% of ESG compliant suppliers by 2026.
EDPartners: a global program of proximity
The EDPartners program covers more than 10,000 suppliers from different areas, both specific localized needs as well as purchases with a global scope; both small and medium-sized companies and large global players with a vast presence. Supplier management is carried out by the Global Procurement Unit, which liaises directly with the different areas of the corporate center.
The implementation of the program and its initiatives by the UPG is carried out directly in Portugal and Spain, and is also coordinated with the teams in Brazil. These three geographies comprise approximately 60% of EDP's suppliers, but the distribution of partners, essential to the group's operation, extends to dozens of countries where the search for close, long-lasting and sustainable relationships is a constant objective.
We choose Earth with our partners.
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