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The trend shown by the accident indices confirms the effectiveness of the policies adopted in past years with regard both to company employees and contractor employees.
Nevertheless, two serious accidents that resulted in the loss of human life occurred in 2006: an Edison employee was killed in an accident while in transit and a contractor employee lost his life while working at a hydroelectric power plant. We are deeply saddened by and sorry for these accidents, which, however, provide fresh momentum to our commitment to proceed rigorously along the path to prevention.
One of the reasons for our success is the involvement of the entire organization and the empowerment of all employees. This approach was emphasized in the intensive training programs provided in 2006, which targeted primarily Prevention and Protection Services Officers and Managers and exceeded the requirements of the applicable laws. Jobsite assistants were also
Nevertheless, two serious accidents that resulted in the loss of human life occurred in 2006: an Edison employee was killed in an accident while in transit and a contractor employee lost his life while working at a hydroelectric power plant. We are deeply saddened by and sorry for these accidents, which, however, provide fresh momentum to our commitment to proceed rigorously along the path to prevention.
One of the reasons for our success is the involvement of the entire organization and the empowerment of all employees. This approach was emphasized in the intensive training programs provided in 2006, which targeted primarily Prevention and Protection Services Officers and Managers and exceeded the requirements of the applicable laws. Jobsite assistants were also
instructed on the importance of prevention. Safety training accounted for 30% of total training hours in 2006, about the same as in the previous year. In 2006, as the new computerized risk assessment method adopted pursuant to Legislative Decree 626/94 became more established, the Group’s Divisions have began to assess, on an ongoing basis, the risks entailed by their activities and to identify priority areas that need improvement based on consistent criteria.
A noteworthy project involved the performance of extraordinary maintenance to avoid the dispersion of asbestos fibers in the work environment at the Piombino and Porto Marghera power plants.
Safety Training
| 2003 | 2004 | 2005 | 2006 | |
| Total training hours | 24,786 | 26,768 | 25,093 | 25,505 |
Occupational Accidents in 2006
| Number of | Number of | Hours | Accident | Serious accident | |
| accidents* | work days lost | worked | frequency index | index | |
| Edison employees | 17 | 268 | 4,033,912 | 4.2 | 0.07 |
| Contractor employees | 26 | 8,990 | 4,446,870 | 5.8 | 2.02 |
SUPPLIERS: PARTNERS
IN OUR GROWTH
IN OUR GROWTH
Cooperation, transparency and strict compliance with contractual conditions are the guiding principles that govern our daily transactions with suppliers of goods and services.
Edison’s Code of Ethics requires all employees to comply with internal procedures in qualifying and evaluating suppliers and to refrain from discriminating among suppliers, based on objective, clearly stated, transparent and documentable criteria.
Because we are open to trying alternative solutions, we are responsive to innovative proposals that are compatible with our environmental and safety concerns.
In 2006, the Group’s total outlays for purchases of goods and for construction contracts exceeded 522 million euros. Italian suppliers accounted for 92% of total purchases (84% in 2005); 8% went to companies in other countries. There are currently 2,413 qualified suppliers (1,959 on the Vendor List for regular purchases and 454 in the Supplier Register, which is reserved for items that are strategic and/or critical from a quality, environmental or safety standpoint).
With regard to the stability and longevity of supplier relationships, it is worth noting that 59% of suppliers received orders in both 2005 and in 2006, as well as in the previous period.
In 2006, invoices representing 54% of purchases were paid within 60 days of the invoice date (44% in 2005), and invoices representing 91% of purchases were paid within 90 days (91% in 2005).
In past years, the number of disputed items was always very low, and there were no disputes in 2006.
Edison’s Code of Ethics requires all employees to comply with internal procedures in qualifying and evaluating suppliers and to refrain from discriminating among suppliers, based on objective, clearly stated, transparent and documentable criteria.
Because we are open to trying alternative solutions, we are responsive to innovative proposals that are compatible with our environmental and safety concerns.
In 2006, the Group’s total outlays for purchases of goods and for construction contracts exceeded 522 million euros. Italian suppliers accounted for 92% of total purchases (84% in 2005); 8% went to companies in other countries. There are currently 2,413 qualified suppliers (1,959 on the Vendor List for regular purchases and 454 in the Supplier Register, which is reserved for items that are strategic and/or critical from a quality, environmental or safety standpoint).
With regard to the stability and longevity of supplier relationships, it is worth noting that 59% of suppliers received orders in both 2005 and in 2006, as well as in the previous period.
In 2006, invoices representing 54% of purchases were paid within 60 days of the invoice date (44% in 2005), and invoices representing 91% of purchases were paid within 90 days (91% in 2005).
In past years, the number of disputed items was always very low, and there were no disputes in 2006.
Quality of Supplier Relations
In 2006, Edison and a number of major Italian companies took part in the Sustainability and Integrity in Supplier Relations Project promoted by the Procurement Executive Circle (PEC). In addition to contributing to the development of procurement management guidelines that are consistent with best practices and international criteria for corporate social responsibility, Edison agreed to perform an assessment of its implementation of these guidelines. The assessment was carried out by means of a questionnaire that measured the effectiveness of the Company’s procurement policies and practices.
The results of this survey will be published in the spring of 2007.
In 2006, Edison and a number of major Italian companies took part in the Sustainability and Integrity in Supplier Relations Project promoted by the Procurement Executive Circle (PEC). In addition to contributing to the development of procurement management guidelines that are consistent with best practices and international criteria for corporate social responsibility, Edison agreed to perform an assessment of its implementation of these guidelines. The assessment was carried out by means of a questionnaire that measured the effectiveness of the Company’s procurement policies and practices.
The results of this survey will be published in the spring of 2007.
The main aspects of the system that governs the Group’s relationships with its suppliers are reviewed below:
- The supplier qualification and control procedures require the input of the Purchasing, Environmental Protection, Safety and Quality, Accounting, Engineering, and Production Departments.
- The qualification of the Group’s suppliers includes verification of compliance with environmental, quality and safety requirements. Verification is currently carried out through the review of documents such as those containing the accident indices of contractors, which are compared with the relevant industry averages.
