Sustainable supply chain program

The strategic role of sustainability throughout the supply chain.

The quality of products is closely tied to the quality of suppliers. This is why the entire supply chain is subject to a structured process which includes sustainability among the requirements taken into account for their qualification. The Sustainable Supply Chain Program was set up in 2012 with the aim of mapping supplier performances as well as their awareness about topics related to sustainability. According to the program, all suppliers, except for those providing services, are required to complete an annual questionnaire made up of 65 questions, subdivided into 5 macro areas: Ethics & Compliance, Human Rights, Health & Safety, the Environment and Energy. After receiving the self-assessment questionnaires, Magneti Marelli analyses the documentation obtained and identifies which companies are the most important from a strategic point of view.

In addition, if the supplier comply with particular socio-enviromental requirements, he acquires a “bonus “ that will increase his quality performance evaluation, one of the criteria taken in consideration for sourcing decision . On site audits are also part of the Sustainability Program, cause it is crucial to check the consistency and the veracity of the answers provided in the questionnaire. Another key element is reflected in the fact that this process provides Magneti Marelli with more detailed knowledge of its suppliers and consolidates relationships, fostering a mutual opportunity for growth. Magneti Marelli does not simply analyse and verify the answers but encourages activities towards its suppliers, which promote their involvement and awareness-raising in order to solve critical aspects. The Sustainable Supply Chain Program is an initiative which, aims at fully considering sustainability performances as a selection criterion in decisions regarding sourcing, and reinforces Magneti Marelli’s role as a “promoter of sustainability” throughout the value chain.