Generali Group

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          Purchasing procedures

          To generate a long-lasting competitive advantage in terms of service, quality, costs and social and environmental responsibility, we aim to foster a system of efficient management of purchasing procedures.

          Accordingly, we identify and use the most reliable suppliers that can provide high quality products and services to the group within the constraints of Generali’s social and environmental guidelines.

          We identify and select suppliers worldwide through a series of clear, precise and non-discriminatory procedures, using criteria that are objective, well-documented and transparent, based on the quality of the products and services offered. In doing so, we also take into account compliance with international ethical principles on labor and human rights, as well as the environmental impact of approaches to production and supply.

          ACCREDITATION

          The accreditation of suppliers in the main countries in which we operate takes place via an online platform (One Procurement Tool). This process allows suppliers to enter their business details and to view and acknowledge Generali Group documents. At this stage, we ask suppliers to complete a series of questions to verify their credentials; information required includes whether the supplier is in possession of environmental and social certification, and whether they have an environmental policy, or participate in any initiatives that focus on safeguarding the environment. To check the accuracy of the information, we leverage on external international Infoproviders that provide us with specific data on financial and economical company status, reputational risks and third party links. Constant monitoring of these topics is actively in place to ensure the screening update to detect any possible change. Special procedures have been detailed in the Group Procurement Purchasing Guidelines in order to manage possible issues or negative scorings/hits from the Infoprovider. Depending on the severity of the issue, an escalation process, involving the Group and the Supplier must be activated.

          A dedicated Group Policy entitled “Group Policy for Environment and Climate” has been widely distributed, defining the guidelines to be followed internally and externally, in order to ensure proper business decisions, taking into consideration such topics.

          Diversity and Inclusion have been increasingly recognized as Group priority. The importance is such that it forms a foundation to the company strategy, which in practice supports a diverse and inclusive workplace, leveraging the positive effects of diversity in achieving a competitive business advantage.  The main areas of focus are cultural, age and gender diversity. The Group has implemented a plan with ambitions to be achieved for each of the clusters, as well as inclusion, which is key to making diversity work. Promotion of LGBT and disability inclusion are also at the heart of the activities to be implemented over the next two years.

          During the selection process and in a bid to encourage suppliers to adopt socially responsible & sustainable behavior, we regard strongly those with social and environmental certifications or policies. In particular, the introduction of environmental factors in the assessment of our suppliers is in line with the objectives set out in the Generali Group Policy for the Environment and Climate.

          We give each supplier in the Suppliers Portal a qualification score and, where necessary, evaluate them on the basis of service and quality indices. We then combine these metrics to determine whether or not the supplier remains on the ‘approved’ list. Qualified suppliers under these standards can participate in the procurement process and can be selected to provide their services or goods to the Group.

          We follow Green Procurement standards when buying goods and services, choosing those that have a lower impact on human health and the environment when compared to other products and services used for the same purpose.

          To promote green purchasing behavior across all the countries in which we operate, we have launched a process involving all suppliers and purchase representatives with the aim of:

          • providing guidelines and methodological support for the introduction of green procurement criteria
          • applying environmental assessment and qualification criteria
          • encouraging correct application of the Code of Conduct
          • recognizing efforts made and results achieved, encouraging the adoption of further sustainable practices

          In addition, in some cases during the supplier selection process and when making purchasing decisions, we favor cooperatives or organizations with a social purpose, in order to support their efforts in providing assistance to disadvantaged people.

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