Annual Report - EDP

: performance :3.7. suppliersThe performance of its suppliers is crucial tothe EDP Group’s success. A relationship withsuppliers based on trust, collaboration and thecreation of shared value results in the jointcapacity to innovate, strengthen Corporate SocialResponsibility policies and improve the quality ofservice provided to customers. This will, in turn,significantly contribute to helping EDP maintainits leading position in the areas it operates inand promote the competitiveness factor in themarkets in which it is present.In 2012, the EDP Group overall procurementreached EUR 2,872 Million. This figure doesn’tinclude fuel purchase, since this process is a keyfactorin the energy sector business3.7.1. overallprocurementGiven the size, types and recurrent nature of manyof the EDP Group purchases, the company hasa very positive influence on the local economy,in that it can help advance the quality andcompetitiveness of the economic agents in theareas in which it operates. The distribution of theprocurement activity is more or less in line withthe Group business in the countries in which itoperates. Accordingly, in 2012 purchases fromforeign suppliers accounted for only 13% of totalprocurement.Local suppliessupplyers 2012turnover(EUR Million)LocaL(%)Foreign(%)Portugal 1,216 92 8Spain 281 94 6Brazil 387 100 0EDPR 988 72 28In 2012, around 59% of our suppliers that suppliedgoods and services worth more than EUR 75,000were registered in the Supplier RegistrationSystem (see Good Practices). Of these, 60%have quality management systems in place thathave been certified by independent bodies. Withregard to environmental and safety managementsystems, 36% and 30% of the companies arecertified, respectively.3.7.2. FuelsThe strategy adopted by the company for coaland gas procurement is essentially based onestablishing long-term contracts, with short-termconsultation processes being launched to coverany additional needs that may arise.The contracts agreed upon provide a degreeof comfort in legal terms and in terms of creditrisk, liquidity, material adverse alterations andnon-performance provisions. In order to reduceexposure to operational risks, the company seeksto address the need to follow best practices inits contracts. By way of example, in the specificcase of coal, automatic sampling is carried out andonly ships aged 20 and younger may be used inthe shipping of coal. In line with the InternationalMaritime Organisation (IMO) recommendations andthe European Union regulatory framework, CO 2emission threshold limits for the maritime transportof coal also apply.GEOGRAPHIC DISTRIBUTION OF PROCUREMENT OPERATIONS9%13%78%52%6% 2% 2% 8%30%GLOBALEUROPEPORTUGALSPAINGERMANYUNITED KINGDOMEUROPEUSABRAZILROMENIAOTHERSMAJOR CERTIFIED SUPPLIERS (%) 201273805761434729343130139Portugal *Spain **BrazilEDPRISO 14001(a) OHSAS 18001(a) ISO 9001(a)(a) Number of Suppliers registered with the Corporate Supplier Registration System of the EDP Group.* Values referring to EDP companies, except EDP Renewables.** Values referring to HC Energía and Naturgas.EDP - Annual Report 201279