Naturgy will ask its suppliers to measure their carbon footprint in contracting procedures

  • The company includes this sustainability approach when bidding for purchases with a high risk of climate change and a contract value of more than 500,000 euros.
  • With this initiative, the energy company aims to reduce the carbon footprint of its supply chain by enabling suppliers to take measures that allow them to reduce their carbon emissions.
  • Naturgy continues to develop its decarbonisation strategy focusing on reaching net zero emissions by 2050, in line with the Paris Agreement.

Henceforth, it will be a mandatory part of the bidding process for Naturgy to demand that those suppliers with high climate change risk measure their carbon footprint whenever the amount of the contract exceeds 500,000 euros. In such cases, more than a hundred suppliers will be obliged to present a carbon footprint certificate as a mandatory requirement that will be technically evaluated.

To implement this new sustainability approach, Naturgy established two phases. Firstly, over the past year and on a voluntary basis, as part of their technical offer, suppliers were invited to include a certificate in which an accredited entity verified the measurement of their carbon footprint. This information could be valued positively by Naturgy when awarding a contract. From this year onwards, and for purchases of more than 500,000 euros with a particular level of climate change risk, this certificate will be mandatory.

In addition, since January last year, depending on their climate change risk or the amount of the contract for which they are bidding, certain suppliers have been required to report annually to the company on their performance in achieving climate objectives by completing the CDP Supply Chain questionnaire.

With this step forward in the fight against climate change, the energy company aims to reduce the carbon footprint of its supply chain and extend its social and environmental commitments to the entire value chain. In addition, the company will help the SME ecosystem with which it collaborates to implement Environmental, Social and Governance (ESG) criteria in its management model. In this respect, the company has joined the “Intake programme: Sustainable Suppliers” of the UN Global Compact Spain to provide training in sustainability issues to SME suppliers of the companies promoting the programme.


Commitment to sustainability and energy transition

The excellent service Naturgy provides to its customers would not be possible without the collaboration of a supply chain that is committed and aligned with its values and purpose. During 2022, Naturgy has worked with close to 6,000 suppliers and contractors. More than 80% of the purchases presenting high risk in ESG issues was audited and the objective is to reach 95% in 2025.

In 2021, Naturgy presented its new 2025 Strategic Plan, which promotes its role in the energy transition and decarbonisation with the ambitious objective to achieve carbon neutrality by 2050, and an installed capacity of renewable resources close to 60% by 2025.

In terms of the environment, the company significantly reduced its total Greenhouse Gas (GHG) emissions, which were 16.5% less than in 2021, especially Scope 3 indirect emissions. As a result, the company’s total carbon footprint has been reduced by 24% compared to 2017, bringing forward the reduction target set for 2025.

The company’s performance in social, environmental and good governance issues has been recognised by the most renowned rankings and standards in the world, including CDP, FTSE4GOOD and Ecovadis, and has been awarded best energy company in the world at the Global Energy Awards 2021, by S&P Global Platts.