Page 32 - EniFor2016_Performance_eng

30 Eni for 2016 | Sustainability Performance

Relations with vendors,

customers and consumers

Procurement by geographical area in 2016
Rest of
Ratio Africa Americas Asia Italy Europe Oceania
Number of suppliers used (number) 2,097 825 625 3,160 3,231 103

Total procurement (€ million) 3,069 501 464 7,022 2,208 -15 (a)
- of which goods (%) 4 20 19 13 23 10
- of which works 37 5 19 14 19 <1

- of which services 59 75 62 73 58 90
(a) The negative volume of procurement in Oceania is due to the closure of a contract worth 47 million euros, which is partially offset by the remaining volume of
contracts issued in the period.

Relations with vendors 2014 2015 2016
Procurement by macro-class (€ million) 24,068 20,350 13,249
- works 4,286 1,061 2,664
- services 16,749 15,452 8,875
- goods 3,033 3,837 1,710
Supplier Concentration top 20 (%) 36 35 21
Number of suppliers used (number) 13,145 11,380 10,041
Qualification cycles performed during the year 14,664 9,540 27,473
- of which with negative results (%) 15 17 14
Checks carried out following negative feedback (number) 480 719 933
and consequent actions taken of which:
- suspensions 114 128 162
- revocations 37 40 8
- alert status 329 551 763

In 2016, 10,041 vendors throughout the world worked with iii) trade union freedom of association and collective
Eni with a total trade value of €13.25 billion. bargaining.
Eni considers the respect for and protection of human In addition to these activities, which are an integral part of
rights at every stage of relations with suppliers. Therefore the procurement process, a supplier assessment program has
suppliers are subjected to a structured assessment, aimed been pursued for years on suppliers that carry out high risk
at checking and monitoring their compliance with the activities or operate in critical Countries, to check that they
main ILO standards and, in particular: actually comply with the main ILO standards in the field.
i) commitment to the promotion and observance Suppliers assessments are an integral part of the Vendor
of workplace health and safety conditions, Management System (VMS), which qualifies vendors
ii) observance of the prohibition against forced labour through the evaluation, verification and monitoring of their
and exploitation of child labour, technical, organizational and management capabilities,