Sustainable suppliers
Creating value by responsibly managing relationships with key suppliers along our business path
We promote the development of an increasingly sustainable supply chain, both through a procurement process that integrates sustainability elements and by strengthening partnerships with suppliers, supporting them in acquiring skills and awareness on the key topics of sustainability and workplace Health & Safety.
Risks in the value and supply chain are carefully monitored and mitigated through preliminary analyses and document requests that enable customers and suppliers to be assessed in depth and in compliance with regulations.
Code of Ethics, 231 Model and Conflict Minerals Policy
The supply chain is a strategic element for business operations. Suppliers are required to consult and approve the Group’s Code of Ethics promoting a transparent relationship and shared growth, which is essential to ensure responsible behaviour in line with our values. Specifically, the Group’s Code of Ethics includes a specific section dedicated to relations with Suppliers, which must be managed according to principles of maximum collaboration, openness and professionalism, as well as based on respect for the principles of transparency, equality, loyalty, fairness and competition. Each Supplier is required to comply with the principles set out in the Group's Code of Ethics, which is essential for establishing and maintaining the contractual relationship.
Suppliers must also undertake to read and comply with the Organizational Model pursuant to Legislative Decree 231/2001 (231 Model) adopted by the Group, or they must demonstrate that they have their own Code of Ethics with principles consistent with those of the Sesa Group. Knowledge and compliance with 231 Model (by suppliers) promotes a more aware and sustainable supply chain, ensuring responsible conduct, preventing unlawful practices, and promoting a shared ethical culture throughout the entire value chain.
Finally, we have adopted a Conflict Minerals Policy, with the aim of promoting a supply chain free from minerals extracted, processed, or traded in conditions of armed conflict and human rights violations. The policy seeks to support a more sustainable value chain by encouraging all involved parties to operate in full respect of human rights.
The selection of new suppliers based on sustainability criteria
We apply principles of fairness and transparency in our relationships with suppliers by adopting selection procedures conducted impartially and in accordance with rules that include the assessment of quality, technical and professional suitability, ethical and behavioral aspects, compliance with applicable regulatory standards, and cost-effectiveness in the supply of goods, services, and works.
The selection of new Suppliers must be based on criteria of transparency and fairness and aimed at identifying counterparties capable of best reconciling business needs in terms of cost/performance, while limiting, as far as possible, the company’s potential exposure to risks. As part of the supplier selection process, Sesa Group companies appropriately assess, depending on the business relationship, the counterparties’ characteristics—including through specific self-certifications—such as economic and financial solidity and reliability, by consulting public and/or system databases or using certified information services.
Suppliers that show inadequate performance are subject to corrective actions and may also be suspended or placed on a Black List in the event of poor performance and/or negative information or following significant events, including: unethical behavior; serious environmental or occupational health and safety incidents; serious non-compliance identified through audits or on-site inspections; failure to maintain the documentation required to meet legal obligations related to workplace safety; or a documented irregular position with respect to legal obligations.
EcoVadis, the sustainability rating of suppliers
EcoVadis is one of the leading international platforms for eco-sustainability ratings which, by leveraging the influence of global supply chains, supports companies in their ESG development by enabling them to monitor the sustainability performance of suppliers. The assessment model is based on internationally recognized standards, including GRI (Global Reporting Initiative), UNGC (United Nations Global Compact), and ISO 26000.
The evaluation analyzes supplier performance across four areas: environment, labor and human rights, ethics, and sustainable procurement. Following the assessment, EcoVadis assigns a score to the partner and provides access to a dedicated platform where analysis elements, strengths, and identified areas for improvement are available. The platform also allows companies to benchmark their performance against others in the same sector, share improvement plans, and receive feedback from stakeholders. The medal recognition system (bronze, silver, gold, or platinum) further facilitates an immediate understanding of the sustainability level of the assessed companies. The use of EcoVadis promotes a supplier selection and monitoring process based on consistent ESG criteria, contributing to the development of a more responsible and transparent supply chain.
In addition to using the platform for supplier assessment, we also submit our Group to the same evaluation process. Our policies and actions allowed Sesa to achieve the Platinum medal in 2025. This medal represents the highest level awarded by EcoVadis and places Sesa among the top 1% of the most sustainable companies certified globally.
Relevance of ESG criteria: Certifications and Supplier Health and Safety
Our priority targets include constantly monitoring the environmental, social and governance impact across the entire supply chain and increasing the percentage of suppliers with ISO certification. The main certifications required of our suppliers are: ISO 9001 for quality management systems, ISO 14001 or EMAS for environmental management systems, and OHSAS 18001/ISO 45001 for health and safety management systems.
Workplace safety is another key aspect of our relationship with our suppliers, which is why we take steps to ensure the protection of workers throughout the supply chain, in line with the requirements of our Code of Ethics and our sustainability goals. In addition to awareness-raising and training initiatives, audits and inspections are carried out regularly to verify compliance with safety standards by contractors and subcontractors.
Supplier audit activities as of April 30, 2025:
We evaluate and classify suppliers through a structured process based on criteria such as: turnover, supply risk (depending on the complexity of finding alternatives), financial solidity and level of dependence, technical and managerial capabilities, sustainability, quality and punctuality of deliveries.
In our classification system, we also distinguish between strategic suppliers (characterised by high turnover and supply risk) and suppliers with high ESG risk, identified through analysis of specific risks related to country, sector and commodity. Risk mitigation measures are in place for each type.
To prevent risks related to the protection of human rights and the health and safety of workers along the supply chain, Sesa has introduced specific measures: from qualification for access to the supplier register, to the conduct of verification audits, to the definition of dedicated development plans.
70%
Strategic suppliers subject to audit
90%
Strategic suppliers with high sustainability risk subject to audit
75%
Total suppliers subject to audit