Suppliers

In order to work with Enagás, the company has defined approval requirements in ethical, human rights, social and environmental areas, including observance of the principles of the United Nations Global Compact and the Universal Declaration of Human Rights. These requirements may vary depending on the level of risks associated to the Category that wants to be approved.

These require, among other things, the commitment of suppliers to comply with all the company’s corporate policies (Code of Ethics, Sustainability and Good Governance Policy, Health and Safety, Environment and Quality Policy and so on).

You can consult here the general contracting conditions/policies

A procedure through which Enagás promotes the implementation of continuous improvement processes in the development of its suppliers’ services. Enagás evaluates the performance and reliability of its supplier network on a regular basis by analysing aspects such as compliance with deadlines, technical quality, quality of the service provided and sustainability aspects. To this end, the professionals dedicated to purchasing management receive the required periodic training.

Critical suppliers are considered to be those belonging to families of products or services whose failure or malfunction has a high economic impact or are of high criticality for the business (critical components or services) and with a low number of suppliers (difficulty of substitution). Enagás has 233 approved critical suppliers, which accounted for 35% of the purchases made in 2022. We have also identified more than 70 indirect critical suppliers.

Prior to homologation, we conducted a systematic analysis of public information on potential suppliers to analyze their potential ESG risk based on the inherent risk of the country, considering public financial information and conducting consultations on aspects related to human rights, ESG aspects, ethics and compliance in reputational analysis platforms.

In order to extend the company's commitment to sustainability to our entire supply chain, we carry out periodic evaluations of our suppliers:

• Internal and external evaluations in the areas of human rights, ethics, financial, reputational, environmental and social aspects.
• Cybersecurity Scoring **
  
• Environmental audits of construction sites **
• Documentary and on-site safety audits of suppliers performing work at facilities**
• External audits in the areas of finance, ethics, environmental and social aspects in which practices related to ethics, human rights, labour (workforce structure, hiring of people with disabilities, etc.), safety, environment, stakeholder engagement, quality and transparency, among other aspects, are verified **
• Internal assessment on climate action **

For 100% of the evaluated suppliers identified as having a high ESG risk, action plans have been defined to mitigate these risks. These plans include guidelines for the implementation of the lines. Additionally, in 2023 we have disseminated among our suppliers a Global Compact learning journey to drive sustainability and business growth for small and medium-sized enterprises.

**The results of these evaluations are valid for two years.:

 Annual supplier assessment targets