Environmental Commitment

Green Supply ChainManagement: The model in detail

Gorane IbarraDerio, 15th November 2013

Stages in Green Supply ChainManagements Model:

Legal requirements and

environmentalprocedures

EnvironmentalManagement

systems

Environmental information of

the product

Eco-designof the

components

InternalSystematics

of Eco-design management

External systems for

environmentalrecognition

Environmentalinformation

Basicgreen

purchasing

Advancedgreen

purchasing

Excellentgreen

purchasing

ENVIRONMENTAL MANAGEMENT OF THE

ACTIVITY

PROCUREMENT OF CORPORATE SUPPLIES AND SERVICES

PRODUCT SUPPLY CHAIN(BUSINESS)

ENVIRONMENTAL MANAGEMENT OF THE

ACTIVITY

Legal requirements and

environmentalprocedures

EnvironmentalManagementsystems

Environmental information of

the product

Eco-designof the

components

InternalSystematics

of Eco-design management

External systems for

environmentalrecognition

Environmentalinformation

Basicgreen

purchasing

Advancedgreen

purchasing

Excellentgreen

purchasing

ENVIRONMENTAL MANAGEMENT OF

THE ACTIVITY

PROCUREMENT OF CORPORATE SUPPLIES AND SERVICES

PRODUCT SUPPLY CHAIN(BUSINESS)

ENVIRONMENTAL MANAGEMENT OF

THE ACTIVITY

àAIM: To achieve a solidworking base

àAGENTS INVOLVED:Suppliers

àThe internal management ofthe activity is dealt with

àService quality andcompetitiveness

Environmental Management of the Activity:

à To ensure compliance with the legal requirements and that the administrative procedures are up-to-date.

àConstantly evolving environmental legislation: current and future legislation.

àBasic situation to continue advancing in environmental protection and responsibility.

Legal requirements and environmental proceedings

Environmental Management of the Activity:

àTo implement an environmentalmanagement system (internalise andsystematise)

àTo ensure ongoing improvement andintegration with the general management activity of the organisation

This gives the organisation:•Legal compliance•Monitoring of the negative impacts on the environment•Improved environmental performance

Environmental management systems

Environmental Management of the Activity:

Support for small and micro-enterprises of thesupply chain in environmental legislationIn line with the family spirit that Vicinay Cadenas wants to maintain, many of its supply chain companies are small and micro-enterprises, sometimes with scarce internal resources to be able to dedicate themto the sustainable management of the company.

With the aim of supporting and transferring to these companies basicconcepts of environmental legislation and procedures as well as theactual internal environmental management that they couldimplement in their companies, it has held a first working meeting withits main suppliers. The companies that attended it were: Mecanizado Cigor, Mecanizados San Miguel, Talleres Sopuerta, EISSEN, EIT Getxo, EBI, RAZYA.

At this meeting, carried out with the presence of Ihobe, all the support tools available in the "Eco-efficiency Programme for Basque Companies 2014" were made available to the participating companies.

Environmental Management of the Activity:

Support for small and micro-enterprises of thesupply chain in environmental legislation

With the aim of guaranteeing the application of environmental policies throughout itssupply chain, Gamesa expects an active commitment in environmental matters from itssuppliers. This includes he establishment of and adherence to an environmentalmanagement system according to the ISO 14001 standard or equivalent, including:

− The participation of the supplier in the guarantee to avoid the use oflimited-use substances in new products.− Communication to subcontracted companies of environmentalawareness Plans in the management of windfarms.− Environmental audits.

Information on GHG emissions and actions to advance in the calculationof the scope 3 carbon footprint according to ISO 14064 is currently beingextended to the supply chain.

Environmental Management of the Activity:

Legal requirements and

environmentalprocedures

EnvironmentalManagement

systems

Environmental information of

the product

InternalSystematicsof Eco-design management

External systems for

environmentalrecognition

Environmentalinformation

Basicgreen

purchasing

Advancedgreen

purchasing

Excellentgreen

purchasing

ENVIRONMENTAL MANAGEMENT OF THE

ACTIVITY

PROCUREMENT OF CORPORATE SUPPLIES AND SERVICES

PRODUCT SUPPLY CHAIN(BUSINESS)

ENVIRONMENTAL MANAGEMENT OF THE

ACTIVITY

Eco-designof the

components

àAIM: To improve the supplies or services directly related to the business of the "sector-driver" company

àAGENTS INVOLVED: The entire supply chain (LIFE CYCLE vision) and

à Increased competitiveness

àChange of philosophy: Change in the way of working or even of the product itself (gradual work proposal)

Product Supply Chain:

à Positioning in markets with an environment-friendly product: transparency, quantifying and with quality data, properly processed and contrasted.

à The aim is that the environmental information or data provided is reliable, of quality and with traceability.

Environmental product information.Product Supply Chain:

àWith direct work with suppliers: More reliable and quality data

à Supplier participation essential

à The aim is to improve the product environmentally, in all the stages of its life cycle.

à ACV tool to identify the Environmental taxes.

à With agents from all the supply chain the possibilities for improvement are significantly enhanced.

Component eco-designProduct Supply Chain:

à Environmental improvement achieved = aggregation of the individual environmental improvements achieved

à The implications of each action with respect to the entirety of the subject product's life cycle are visualised

à The aim is to internalise the methodology of eco-design so that it is not a one-off action.

à Anchor eco-design in the product design and development process through an Eco-design Management System

à Commitment to eco-design of both the supplier and the sector-driving company becomes established.

à Reference: UNE-EN ISO 14006International standard

Eco-design management internal systematicsProduct Supply Chain:

à It is NOT about working on environmental improvement but on COMMUNICATION and the CREATION OF VALUE

à The best environmental recognition system is studied:

à How to optimise these systems working with the supply chain

• Recognition of the own company (internal management) • Recognition of the product

External systems for environmental recognitionProduct Supply Chain:

Ecodesign of an electrical substationand all its components in Ordizia

This ambitious project, in addition to an internal training phase for Iberdrola staff, included two other intermediaryphases of hands-on work with suppliers, focusing on theelements which make up the substation. Incoesa, Adhorna, ABB, Arteche, Ingeteam Power Technology andZIV Aplicaciones y Tecnología joined Ormazabal in participating in these supplier-engagement activities.

The work of these suppliers consisted of simulating the components individually in differentLife-Cycle Analysis software tools to identify their main environmental impacts and thenproposing ways to improve each one of these components. Iberdrola collected all theinformation to achieve a global vision of the substation before and after the proposals.

Product Supply Chain:

Product Supply Chain:

Product Supply Chain:Eroski promotes the consumption of sustainableproducts through environmental certificates

Eroski reinforces its commitment to sustainable consumption by includingenvironmental guarantees in its products.

Such is the case of the FSC sustainable wood products, having received in 2010 the FSC International Partner Award for its commitment in the sale andpopularisation of FSC products, which guarantee a responsible use of forestresources, MSC sustainable fishing products or organic cotton.

Eroski joined the WWF Sustainable Fishing Initiative to receive the MSC certificate in 2010, seeking to ensure that its sources of fish and shellfish weresustainable and environment-friendly. It has been the first Spanish distributioncompany to have products with the MSC eco-label on its fishmonger counter in the fresh foods section.

Eroski currently has ten seafood references with the MSC eco-label, includingspecies such as Skrei cod from northern Norway, South African hake and Alaska pollock.

Legal requirements and

environmentalprocedures

EnvironmentalManagement

systems

Environmental information of

the product

Eco-designof the

components

InternalSystematics

of Eco-design management

External systems for

environmentalrecognition

Environmentalinformation

Basicgreen

purchasing

Advancedgreen

purchasing

Excellentgreen

purchasingENVIRONMENTAL

MANAGEMENT OF THE ACTIVITY PROCUREMENT OF CORPORATE

SUPPLIES AND SERVICES

PRODUCT SUPPLY CHAIN(BUSINESS)

ENVIRONMENTAL MANAGEMENT OF THE

ACTIVITY

à AIM: To procure the products with the best environmental features.

à To establish a relationship (bilateral communication) with suppliers to achieve an improvement of the quality–environmental quality–price ratio

à AGENTS INVOLVED: Suppliers, manufacturers and distributors

à In principle, it does not affect the business product of the organisation

à It enriches other management or recognition systems of the organisation

Supplies and services procurement:

à Transfer to the supplier of this line of action

à This line does not only approach criteria at the moment of purchase: prior reflection and good subsequent operational practices

à Offer the supplier the opportunity to participate in the process and to contribute at all stages, even submitting their own offers

Environmental information about supplies and services

Supplies and services procurement:

à Purchasing or contracting increasinglyenvironment-friendly products or services.

à Strategy to advance in the amount ofrequirements.

à Study and measure both the economic andenvironmental impact that this action can bring.

à Deploy Good practices among the workers.

Level: basic

Level: Advanced

Level: excellence

Criteria for green private purchasing

Supplies and services procurement:

Supplies and services procurement:

Green purchases in the Corporatesupplies and services of Euskaltel

Since the beginning of its activity, Euskaltel Has Implemented an EnvironmentalManagement system for its activity, to which end it has worked with its suppliers in order to communicate its policies regarding environmental and green purchasingaspects.

Thus, it has worked on the criteria applicable to goods and services purchased in a number of fields with its suppliers:

−Identification of legal requirements and environmental procedures−Management Systems of the Suppliers must directly related to Euskaltel's service−Products and services not so related to the services provided, though highly visible regarding its public image

Euskaltel established a system to communicate the requirements along the supplychain by using information sheets for each supplier that list the requirements to be taken into account. These sheets are given to the suppliers, requesting them tocommit themselves to comply with the criteria set out.