ESG Risk Analysis Across Supply Chains for Enel Green Power
- Client Name
- Enel Green Power
- Location
- Global
- Mining advisory
- ESG advisory
Challenge
Modern supply chains are a labyrinth of interconnected operations spanning multiple regions and numerous suppliers. Renewable energy components and products rely on an intricate network involving minerals such as cobalt, lithium, nickel, and other materials from various corners of the world.
Understanding the ESG impacts and consequences of one’s own operations and products quickly becomes a daunting task. Having visibility of these risks is crucial to ensure ethical business practices along value chains and to comply with increasingly demanding regulation. This is why Enel Green Power approached RCS - now part of SLR.
By offering supply chain assessments tailored to the needs of companies like Enel, RCS provides comprehensive insights into the intricacies of raw material supply chains.
Solution
- Firstly, RCS Global collaborated very closely with Enel Green Power to select all product categories to be included in the assessment.
- Next, the team supported Enel in gathering all the information necessary to understand the potential origin of these products, and all the associated materials required for their manufacture.
- Using an assortment of tailored ESG parameters, RCS carefully arranged a framework focused on highlighting ESG risk hotspots based on country, mineral, and segment within Enel’s supply chains.
- Afterwards, building on SLR’s digital expertise, the RCS team presented Enel with an array of options from our suite of digital development services.
- In a streamlined process, while the platform was being developed, the RCS team conducted comprehensive research on every single ESG indicator for multiple countries, focusing on several minerals and segments of the supply chain, including downstream manufacturing.
Impact
Enel Green Power now counts with a digital tool coherent with their needs and expectations.
The platform supports their procurement team in the assessment of ESG risk hotspots across a wide spectrum of their products. These are components and product categories that are critical for the deployment of renewable energies and therefore a core part of their business.
The client can now confidently deliberate on the various options for the responsible sourcing of such components and can navigate regulatory pressures with trustworthy intelligence.