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Sustainability From Procurement to Human Rights

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Having a sustainable Supply Chain and Procurement, based on the assessment of environmental, social, governance and supplier performance, has become a key factor for successful businesses and long-term growth.

When the Supply Chain and Procurement system is not working properly, or does not comply with ESG (environmental, social and governance performance) standards, companies are exposed to huge operational and reputational risks.

A value creating process that directly involves the supply chain in all its aspects should be developed in order to avoid such risks and guarantee balanced growth in all contexts in which a business operates (both emerging and more advanced countries).

Over the course of 2015, Enel launched its Sustainable Supply Chain Project through close collaboration between two of its functions, Global Procurement on the one hand and Innovation and Sustainability on the other, at both global and local levels. Thus a single selection process was created by standardising in all the countries in which we operate the criteria for assessing and monitoring suppliers from an ethical standpoint and, above all, in relation to the impact on the Company. In this way we integrate environmental, social and governance issues into our strategy, creating shared value with the local businesses working with us, in the spirit of the circular economy.

In order to achieve this result, the Global Procurement Division has set three main phases to integrate ESG standards into the supply chain process: Qualification System, General Terms and Conditions, Vendor Rating Process.

According to the UN Global Compact (the network of companies, associations and organisations set up in 1999 by then United Nations Secretary-General Kofi Annan to promote sustainable development across the world) , this model has become a benchmark for companies aiming to promote long-term sustainable growth while respecting the environment, communities and people. During the presentation of the 2016 report The State of Sustainable Supply Chains: Building Responsible and Resilient Supply Chains, the organization cited Enel’s project as an example of what companies can do in order to render more sustainable this important part of their business.

The supply and procurement process allows us to accurately assess whether those who work with us are aligned with the Group’s targets and sustainable growth strategy. To this end, starting from the tender qualification stage, a questionnaire is submitted to suppliers to assess their level of preparedness in regard to ethics, human rights, work practices, environmental sustainability and fighting corruption, as well as to safety in the workplace.

In compliance with governing laws, the qualifying process requires the presentation of a number of documents and adherence to the principles expressed by the Code of Ethics, by the Zero Tolerance of Corruption Plan and by the 231 Compliance Programme. Other requirements include observance of the ten principles of the Global Compact, with specific reference to the absence of any conflict of interest (including any potential conflict). An equally strong focus is on safety at work: accident indicators and OHSAS or similar certifications are assessed. In addition, for sectors with a high environmental impact, the supplier’s environmental performance is assessed and, where necessary, an environmental management system in accordance with the ISO 14001 standard is required.

Finally, the qualifying procedure is complemented by the Vendor Rating system, aimed at monitoring the performance of suppliers in terms of their proper conduct during the tender and quality, timeliness, and sustainability in performing the duties stipulated by the contract.

In order to make the whole process more sustainable and effective, Global Procurement applies cutting-edge technologies that make it possible to standardize the various systems and enhance best practices. Through the dedicated website, all Enel Group companies and suppliers can interact and share information and data, establishing a constant and positive dialogue with the businesses that work with us.

This open system makes it possible to grow together and create sustainable development for the environment and the communities involved.

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Flipflopi sets sail around Lake Victoria to raise awareness on pollution menace

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image source: theflipflopi.com

Flipflopi, the world’s first sailing boat made from 100% recycled plastic, is joining forces with the UN Environment Programme’s Clean Seas Campaign once more, this time embarking on an expedition by sailing around Africa’s largest freshwater ecosystem – Lake Victoria. The voyage aims to send an urgent message to the East Africa community on the need to end the unnecessary single-use plastic scourge that is threatening the region. 

The current state of Lake Victoria, supporting 40 million East Africans, through food supply and livelihoods, symbolises the catastrophic effects of human activities and climate change, among other issues, resulting in significant water pollution which threatens the health and livelihoods of communities.

A recent study estimated that 1 in 5 of the fish in Lake Victoria had ingested plastic. Another recent study ubiquitously recorded microplastics in surface waters in several sites of Lake Victoria. At the heart of the plastic waste problem is the linear ‘take-make-dispose’ model of consumption, as products get manufactured, bought, used briefly, and then thrown away. 

The Flipflopi is an initiative showcasing alternative uses of plastic waste and the possibilities of circular economy approaches. Over a three-week period, Flipflopi will sail from Kisumu, Kenya to several locations in Uganda and Tanzania, raising awareness and inspiring communities to adopt circular-waste solutions to beat plastic pollution.

“This Lake, Nam Lolwe, matters to me. It must matter to us all.  Investing in research and development on blue economy investments, improving the health of the lake and riparian environment while ensuring that investments are ‘lake friendly’ from inception are amongst my priorities” said Governor of Kenya’s Kisumu County Anyang’ Nyong’o. 

“The COVID-19 pandemic has accelerated the need to address the myriad environmental crises, which can only be done through regional and global consensus on key issues like single-use plastic, and climate change,” said Joyce Msuya, Deputy Executive Director of the UN Environment Programme (UNEP). “Flipflopi is a great African example of the circular economy in action; we are proud to see it start this new journey around Lake Victoria, a shared resource that we must do all we can to protect.”

Flipflopi’s Lake Victoria expedition will include several stops along the lake engaging community leaders, conservationists, business leaders and policymakers, demonstrating alternate uses of waste plastic and other circular waste models calling for an end to single-use plastics.  

“Flipflopi was built to show the world that it is possible to make valuable materials out of waste plastic, and that single-use plastic really does not make sense,” said Ali Skanda, co-founder of the Flipflopi project and builder of the world’s first recycled plastic dhow. “By sailing around the lake, we aim to inspire people to create their own waste-plastic innovations and adopt circular solutions that will build greener businesses, whilst also taking plastic out of the environment. Together with communities across the Lake Victoria region we hope to bring awareness and innovative solutions to beat pollution and support a green recovery in East Africa”

Flipflopi is an example of innovative circular solutions applied at a national level to the pollution challenge.  In Kisumu on the shores of Lake Victoria, CIST Africa are making hand sanitizer from invasive water hyacinth. 

Innovators like Sanergy are turning Nairobi’s untreated organic waste into organic fertiliser for crops, feed for livestock, and fuel briquettes for energy.  In Uganda, the women who set up Reform Africa are turning plastic waste into sustainable and waterproof bags, whilst providing school children in rural areas with bags for free. In Tanzania, a collective of local artisans known as ‘Made by Africraft’ are introducing youth and the unemployed to developing sustainable handicrafts to create a livelihood. 

Flipflopi, the Clean Seas Campaign and partners aims to showcase green innovations as they sail around the lake, and inspire communities and businesses to act against plastic pollution.

As part of the expedition, the Flipflopi expedition will launch a petition calling for a regional ban on single-use plastics.

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Can financial institutions invest in ocean health?

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New, pivotal guidance published today by the UN Environment Programme Finance Initiative (UNEP FI) provides a market-first, practical toolkit for financial institutions to take immediate action on their lending, investment and underwriting activities which negatively impact ocean health.

The ocean covers 70% of the earth’s surface, holding 97% of all water and 80% of all life forms. Major ocean sectors such as tourism, shipping, fishing, aquaculture and marine renewable energy collectively contribute to a ‘blue’ economy, estimated at a global gross value added of USD 1.5trn in 2010. This is projected to double in size to USD 3trn by 2030, with some ocean industries set to grow faster than the global economy (OECD, 2016).

However, ocean health is under existential threat. Faced with the triple crises of pollution, nature loss and climate change, two-thirds of our oceans have been negatively altered by human activity; leaving industries, businesses and livelihoods exposed. With existing financing still largely directed towards unsustainable sectors and activities, it is critical that all sectors of the blue economy are rapidly transitioned towards sustainable pathways.

Banks, insurers and investors have a major role to play in financing this transition to a sustainable blue economy, helping to rebuild ocean prosperity and restore biodiversity to the ocean. Through their activities, and client relationships, financial institutions have a major impact on ocean health and hold the power to accelerate and mainstream the sustainable transformation of ocean-linked industries. They thereby play essential roles in wider ocean governance, engaging in public-private partnerships, and propelling local-to-global actions for sustainability.  

“Momentum is building as more banks, insurers and investors wake up to the realisation that their financial activities can have a sizeable impact on ocean health, creating a negative feedback loop for key ocean industries such as shipping, fishing, tourism and marine renewables” said Eric Usher, Head of UN Environment Programme Finance Initiative (UNEP FI).

“A new sustainable pathway for the blue economy is thus both an environmental and economic necessity. This critical new guidance provides a practical toolkit for financial institutions to understand their impact and discover how a new sustainable finance approach can help them identify key risks and opportunities in ocean-linked sectors” he added.

Leveraging best practice based on input from more than 50 pioneering institutions and experts, this guidance sets out pathways to sustainable growth across five key ocean sectors, chosen for their established connection to private finance. It presents a detailed breakdown of which activities to seek out as best practice, which activities to challenge, and which activities to avoid financing completely due to their damaging nature.

“Decades of unsustainable consumption and production is leading to environmental risks and losses in natural capital, eroding the ocean’s resource base. Without engagement by financial institutions, we will not be able to change the course to sustain a healthy ocean and unlock its enormous potential. 1$ of sustainable ocean investments can yield 5x higher global benefits” said Leticia Carvalho, Head of the Marine and Freshwater Branch, UN Environment Programme.

“This new guidance can help financial institutions invest in good ocean governance at local, regional and global levels. In a nutshell, making sustainable blue economy opportunities too hard to resist” she added.

This guidance provides decision-makers across banking, insurance and investment with a science-based and actionable toolkit, giving easy-to-follow recommendations on how to approach financial activity related to:

  • Seafood, including both fisheries and aquaculture as well as their supply chains;
  • Ports;
  • Maritime transportation;
  • Marine renewable energy, notably offshore wind; and
  • Coastal and marine tourism, including cruising.

It builds on the foundation of the Sustainable Blue Economy Finance Principles – a keystone for financing activities in the blue economy, supported by a community of over 50 institutions worldwide with a collective total asset size of over USD 6trn.

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Duck conservation takes flight in Jamaica

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On January 20, 2021, the day of the inauguration of American president Joe Biden, two ducks named “Joe” and “Kamala” took flight from a remote wetland near Negril, Jamaica. And, like their namesakes, the fowl will be the focus of international attention.

That’s because Joe and Kamala are West Indian whistling ducks, the rarest duck species in the Americas, with fewer than 20,000 remaining, found only in the northern Caribbean. Conservationists released the pair, which were outfitted with GPS trackers, into the wild on 20 January, kicking off a study to learn more about their species and, researchers hope, ensure their survival.

BirdsCaribbean is a partner of the United Nations Environment Programme (UNEP). The whistling duck study is supported by UNEP’s Integrating Water, Land and Ecosystems Management in Caribbean Small Island Developing States (IWEco) project.

With one million species are at risk of extinction, biodiversity is a key priority of the UN Environment Programme (UNEP).  Ecosystems are fundamental to human health and prosperity, availing food and water, regulating temperature, stimulating economic growth, putting roofs over heads and clothing on backs. As ecosystems degrade, so do human lives.

As the world faces the stark reality that none of the Aichi targets were met and prepares for a new, ambitious post-2020 framework, the issue is more urgent than ever.  In fact, biodiversity loss and ecosystem collapse are ranked among the top five threats to humanity in the coming decade.

Whistling ducks’ long-term survival has been threatened by the destruction of their wetland habitats, as well as climate change, pollution, poaching and predators. Little is known about the large waterbird that is between the size of a large duck and a goose, has a long neck, and is mostly brown in colour, but may have black-and-white patches on its neck and flanks. The duck’s characteristic features is its distinctive whistling call.

“We are thrilled with the launch of this exciting project,” said Lisa Sorenson, the Executive Director of BirdsCaribbean. “I expect it will lead to major improvements in our knowledge of the ducks’ movements and habitat use.”

The trackers attached to Joe and Kamala  are expected to plot their positions every hour to within a few metres and will help the scientists to know about the species, their migration patterns, nesting sites, feeding zones and roosting locales. Researchers are aiming to use the information gathered through the initiative to plan for the species’ recovery.

Led by UNEP with the backing of the Global Environment Facility, IWEco is helping 10 Caribbean countries manage their water and land resources while safeguarding biodiversity. A key part of the project has been the protection and monitoring of endemic species, like West Indian whistling ducks.

As one of the three founding Global Environment Facility partners, UNEP has been working on conservation projects supported by the facility for almost 30 years.

“Together, UNEP and the Global Environment Facility have successfully worked to address global transboundary issues since 1992, and we look forward to further strengthening and implementing actions for nature,” said Sinikinesh Beyene Jimma head of UNEP’s GEF International Waters Unit.

And while biodiversity targets have not been met, evidence indicates that efforts have produced results. Where action was taken, habitat loss was controlled and decades of degradation were reversed.

UN Environment

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