Our suppliers are also subject to a series of sustainability checks, both during the qualification and vendor rating stages.
The action taken by TIM to verify suppliers varies depending on the riskiness of the supplier and the value of the purchase, ranging from simple to complex questionnaires and document checks to specific audits on sustainability matters.
We have classified our procurement markets in accordance with these parameters:
- the geographical areas of reference and the risks connected with them;
- the potential impact on the environment and on the society of the suppliers' activities and of the products/services supplied throughout their entire life cycle, including risks relating to violations of human, employment and environmental rights;
- the impact on the reputation of TIM as a customer.
By relating the spending to the specific purchase market, with the risk index calculated on the basis of these parameters, we have divided our purchase markets into four categories, identifying the most critical ones in terms of sustainability and economic impact. Suppliers belonging to the classes at greatest risk are the subject of sustainability audits carried out by third party companies specialising in the sector. These audits are repeated periodically to monitor the implementation of any corrective actions and, if the results are positive, to verify that the standard of performance found is being maintained. The tools developed and used for the Domestic BU have been explained and transferred to the Brazil BU.
Another sustainability performance verification activity involving suppliers is the Joint Audit Cooperation, which aims to:
- verify the degree of sustainability of the most significant suppliers/sub-suppliers;
- contribute to the growth of sustainability amongst suppliers/sub-suppliers;
- disseminate a sustainability culture through training and capacity building activities;
- share tools to address common and relevant international issues, such as climate change or circular economy.