The feedback regarding the Suppliers' social and environmental responsibility was used as a parameters in the suppliers' pre-qualification and qualification stage. The e-sourcing Portal involves a registration phase in which candidates are asked to view Intesa Sanpaolo's Organisational, Management and Control Model (Legislative Decree 231/2001), Internal Code of Conduct and Code of Ethics. Should the registered members then become our suppliers, the contractual clauses to be signed include the Supplier's commitment to adhering to the principles contained in the abovementioned documents.

During the registration process, the supplier is required to complete a questionnaire dedicated to social and environmental responsibility and upload the appropriate documentation to certify the fulfilment of the stated commitments.

At the end of 2015, there were 7,511 suppliers registered in the Portal in Italy, up by 40% compared to 5,300 in 2013. The suppliers who completed the registration and answered the questions on socio-environmental issues were: 4,366 in Italy, 238 in Croatia, 417 in Serbia and 175 in Slovakia.

An in-depth analysis of answers on social and environmental responsibility showed the following: 11% declare publication of a social and environmental report, 3% hold SA 8000 certification, 18% have a code of ethics or policies describing their social commitment, 12% hold environmental certifications and 7% have an environmental policy. Data in Italy all on the increase compared to 2014 that in any event show how the awareness raised by our Group on the subject for many years has now pushed our suppliers to be more sensitive to these issues. In foreign countries, although it started later in the awareness of its suppliers, it shows a good percentage of coverage of CSR issues.

Situation of answers to the social and environmental questionnaire as at 31/12/2015 Italy No. of suppliers %
The company publishes a social, environmental or sustainability report 477 10.9%
Presence of SA8000 certification 147 3.3%
The company has a code of ethics or policies describing its commitment 802 18.3%
The company holds environmental certifications 540 12.3%
The company has an environmental policy 324 7.4%

Situation of answers to the social and environmental questionnaire as at 31/12/2015 Slovakia, Serbia and Croatia No. of suppliers %
The company publishes a social, environmental or sustainability report 140 16.9%
Presence of SA8000 certification 9 1.1%
The company has a code of ethics or policies describing its commitment 238 28.7%
The company holds environmental certifications 121 14.6%
The company has an environmental policy 150 18.1%

In 2015, all Italian suppliers surveyed received a letter urging them to update the information and documentation uploaded on the Portal to prove the achievement of the commitments undertaken in the social, environmental and ethical area. The declarations made by suppliers and subcontractors were verified through a sample tracking system that focused on the contracts deemed most critical and/or important. The checks on compliance with social criteria required on the one hand, the review of the documentation certifying the technical suitability of the companies (registration in the Chamber of Commerce, Trades and Agriculture, submission of the Chamber of commerce company registration, the Certificate of Social Security Compliance) and on the other hand, the review of economic and capital strength and the absence of prejudicial events pending upon the Supplier.

The investigations on the fulfilment of the environmental commitments undertaken, such as energy efficiency, were instead aimed at verifying compliance with the contractual clauses following the regulatory changes.

Another line of action, which contributes to strengthening the broader activity of supplier monitoring, regards technical assessment of performance in the realm of ICT supplies of the ICT Systems Department. The initiative, based on a survey conducted internally within the same Department, is in its fifth year of operation and extends to a group of suppliers that in 2015 represented approximately 86% of orders by ICT Systems Department, for a total of approximately 283 suppliers assessed. The process involved the submission to 145 colleagues of a questionnaire for the assessment of suppliers in electronic format, distinguishing the evaluation on the basis of four categories according to type of service / product purchased (application services, infrastructure services, hardware and maintenance, software licences and maintenance). The answers to the questionnaires helped to identify any areas for improvement and to rethink the relationship with the supplier from a strategic point of view. In parallel, in the cases where the findings showed a failure to meet the contracted service levels, specific warning letters were sent to suppliers (57 letters in 2015).

At the level of office equipment purchases, it should also be mentioned that the Rules for the purchase of office equipment provide as a tender awarding criterion that the supplier be in possession of an environmental certification such as ISO 14001, ISO 9001 and EMAS. Compliance with the requirement is verified by a statement issued by the manufacturer and/or by the documentation accompanying the product targeted at the user which shows the availability of certification for the Company. Alternatively, a copy of the certification from the accredited certifying body is accepted.

It should be noted that, in view of the recent reorganisation of the Procurement Department, participation in training seminars organised by the consortium ABC Procurement and Cost Management were planned with the aim to investigate, including in the form of thematic insights, the issues of Corporate Social Responsibility and Corporate Sustainability. In 2015 sixteen colleagues attended the workshop dedicated to social, environmental and ethical responsibility, called: “Responsabilità e pensiero sistemico” (Responsibility and systemic thinking), which will be replicated during 2016.

Lastly, the assessment of suppliers who register with the Portal has allowed us to set the bases for an approach increasingly oriented towards mitigation of the risk deriving from management of the supply chain. In 2015 a pilot project was conducted with the company EcoVadis specialising in the evaluation of social responsibility and environmental performance of the supply chain aimed at triggering a virtuous suppliers' qualification process. The project involved 57 suppliers belonging to different product categories for a total turnover of around 668 million euro. The response rate was very good, and none of the suppliers assessed were found to be exposed to "high risk" according to the EcoVadis framework.

Based on this positive experience it was decided to launch an internal working group, coordinated by the Supplier Qualification Coordination and Monitoring Office, aimed at integrating the e-sourcing Portal with a section devoted to the evaluation of socio-environmental risks, which allows to rank suppliers according to these types of risk and its monitoring over time.

In 2016, a contract board review will be launched to update the contractual clauses to the regulatory changes in the social, labour law and environmental areas and to standardise the contract templates on the basis of the newly defined product categories.

The International Subsidiaries also are increasingly sensitive to these issues in relation to their local suppliers. Banca Intesa Beograd, for example, has introduced a CSR questionnaire in the tender invitation letters, divided into 5 areas: governance, customer relationship, workplace, environment and community. The scores obtained in CSR practices are of key importance in the supplier selection process.

Banca Intesa Russia, on the other hand, uses a preliminary CSR questionnaire whose answers, combined with the other criteria, form the supplier’s overall rating.

The Hungarian CIB Bank, during the supplier selection process, in the event of equivalent offers, gives priority to suppliers with better practices from an environmental responsibility point of view. This approach is communicated to the supplier upon invitation to tender. For some contracts, based on the procurement type, it requires suppliers to make their operations transparent in terms of employment and payment practices. For other types of supply, occasional inspections are envisaged, when needed.