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Our suppliers are also subject to a series of sustainability checks, both during the qualification and vendor rating stages.
The action taken by TIM to verify suppliers varies depending on the riskiness of the supplier and the value of the purchase, ranging from simple to complex questionnaires and document checks to specific audits on sustainability matters.
We have classified our procurement markets in accordance with these parameters:

  • the geographical areas of reference and the risks connected with them;
  • the potential impact on the environment and on the society of the suppliers' activities and of the products/services supplied throughout their entire life cycle, including risks relating to violations of human, employment and environmental rights;
  • the impact on the reputation of TIM as a customer.


By relating the spending to the specific purchase market, with the risk index calculated on the basis of these parameters, we have divided our purchase markets into four categories, identifying the most critical ones in terms of sustainability and economic impact. Suppliers belonging to the classes at greatest risk are the subject of sustainability audits carried out by third party companies specialising in the sector. These audits are repeated periodically to monitor the implementation of any corrective actions and, if the results are positive, to verify that the standard of performance found is being maintained. The tools developed and used for the Domestic BU have been explained and transferred to the Brazil BU.


Another sustainability performance verification activity involving suppliers is the Joint Audit Cooperation, which aims to:
 

  • verify the degree of sustainability of the most significant suppliers/sub-suppliers;
  • contribute to the growth of sustainability amongst suppliers/sub-suppliers;
  • disseminate a sustainability culture through training and capacity building activities.

 

Between 2010 and 2017, thanks to the gradual increase in the number of members of JAC, 366 audits were carried out – including 89 in 2017(1) alone - in production plants (suppliers and sub-suppliers) located in Asia, Central and South America, North Africa and Eastern Europe. The checks were carried out through international specialised companies selected by competitive tender and related to a total of more than 816,000 workers. The suppliers included in the audit campaign belonged to the user devices and appliances, network appliances and IT equipment production sectors.

The table below shows the non-conformities recorded during audits on Group suppliers, including those relating to Human Rights(2)

 

 

(1)  262 of TIM suppliers, of whom 52 in 2017 alone.

(2) The totals are subject to amendment due to the calculation of checks carried out overlapping a period of two years.

  2017 2016 2015

Environment

22 (11) 31 (23)

27 (22) 

Discriminations

8 (6) 3 (2)

5 (3) 

Business ethics

18 (14) 67 (61) 38 (35)

Forced labour

7 (3) 6 (4) 8 (7)

Child labour

2 (2) 7 (6) 7 (5)

Freedom of association

1 (0) 8 (8) 2 (2)

Working hours

45 (29) 49 (36) 33 (27)

Salaries

10 (9) 17 (13 22 (18)

Disciplinary proceedings

2 (1) 4 (4) 5 (4)

Health and safety

103 (59) 188 (167)

130 (115)

(data relating to suppliers also operating for the Brazil BU is given in brackets)