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Sustainability controls on suppliers

05/04/2017 - 04:45 PM

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Suppliers are subject to a number of checks on their sustainability performance. Some of such checks are are carried out together with other general evaluations. For example:
 

  • during the qualification stage, potential suppliers are subject to economic screening, product/service screening, but also to controls on compliance with environmental and labor norms, as well as on their  position concerning Law 231 (on bribery and other offences). At this stage, the supplier must commit itself to the principles of the Code of Ethics of TIM;
  • in the process of vendor rating, during and after delivery of service/product, aspects of health and safety and compliance with environmental norms are rigorously evaluated. This evaluation is then taken into account of in the supplier's overall rating. A low rating is contractually tied to penalties and may, in some cases, result in the termination of the contract.

Other controls are specific to certain aspects of sustainability:

  • in the qualification phase the supplier is expected to answer a specific questionnaire on its sustainability performance
  • audits on Health and Safety and on Environment are carried out regularly (by TIM's department which is responsible for Health, Safety and the Environment within the company) on specific types of suppliers which are considered at risk (for example, network suppliers)
  • specific environmental audits are carried out for suppliers involved in Telecom Italia's processes covered by the environmental certification
  • audits conducted in cooperation with other telecom operators in the framework of an international initiative called Joint Audit Cooperation (JAC) - of which Telecom Italia is a founding member - whose aim is to evaluate the social and environmental performance of suppliers operating in developing countries. In all cases, should the audit yield non-conformities, a process is run for the management of the non conformities which, in the most critical cases, includes a follow-up audit to verify the closure of the non conformity.

For all the non-conformities encountered, specific corrective action plans were drawn up that established resolution procedures and timetables amongst others.

The table below shows the non-conformities recorded during audits on Group suppliers, including those relating to Human Rights.Data in brackets refer to suppliers who also work for the Brazil BU.

  2016 2015 2014

Environment

31 (23) 27 (22)

14 (12)

Discrimination

3 (2)

5 (3)

2 (2)

Business ethics

67 (61)

38 (35)

18 (18)

Forced labour

6 (4) 8 (7)

5 (4)

Child labour

  7 (6)

7 (5)

8 (8)

Freedom of association

8 (8)

2 (2)

2 (2)

Working hours

49 (36) 33 (27)

23 (20)

Wages

17 (13) 22 (18)

6 (3)

Disciplinary practices

4 (4)

5 (4)

4 (3)

Health & Safety

188 (167) 130 (115)

79 (68)