Quality and competitiveness are closely linked upstream and downstream of the supply chain.
The steel produced by Feralpi underpins various supply chains, but we in turn are users of the raw materials required for our business. This is why supply management and customer relationships are key factors.
Our day-to-day commitment is to collaborate with all partners in our supply chain, and be proactive in a process to raise awareness along the entire chain in terms of lasting, sustainable development.
The value chain: from raw materials to finished products
A synergy with local communities
We support the economic and socio-cultural development of local communities by prioritizing local suppliers. In doing so, we help generate local employment and economic well-being, fostering a positive impact on society. In 2024, 25.47% of our revenue was directed to local suppliers.
A sustainable and resilient supply chain
To adequately address the ongoing environmental and social transformations, companies are increasingly called upon to carefully assess the ESG impacts along their production chains. To mitigate risks and enhance operational efficiency, it is essential for companies to partner with suppliers who share their values and operate with respect for the environment, human rights, workers, and local communities. Adopting sustainable practices is a key driver for ensuring supply chain resilience in a global context of growing economic and geopolitical uncertainty.
Product quality and safety standard
The Group's products must meet various quality, safety, and regulatory standards, enforced through a rigorous supplier selection process. Quality is crucial across all sectors, particularly within the automotive supply chain. For this reason, the Group conducts strict product inspections and maintains robust quality risk management protocols.
Ferrous scrap: a special focus
Vertical integration, from scrap to pre-shaped products. Feralpi Group is one of the few operators capable of controlling every aspect of the value chain. To ensure the quality of scrap and reduce the risks of inadequate supplies that could compromise the final product, our suppliers are continuously monitored using specific indicators that assess the quality of the delivered material. Supplier qualification is essential to guarantee compliance with contractual requirements and meet customer expectations. High-quality suppliers help ensure transparency and regulatory compliance, improving market oversight and enabling more effective and targeted business operations.
Feralpi Group aims to strengthen the integration of ESG criteria into its supplier qualification process, with the goal of improving the assessment of their performance and promoting sustainable practices throughout its supply chain.
Creating value for stakeholder
Feralpi Group supports the sustainable development of the regions where it operates by creating shared value with its stakeholders. The Group's activities help strengthen the local socioeconomic fabric, both by supporting employment and growth along the value chain and by promoting cultural, social, and environmental initiatives.
Company and partners: A shared value
Partnership and sustainability
The Group is committed to ensuring safe and healthy working conditions for its suppliers and involving them in its ESG strategies to create a virtuous cycle of sustainability along the entire supply chain. We also build valuable relationships aimed at increasing supplier awareness of their impacts, fostering partnerships with sustainability goals that go beyond commercial objectives.
Supplier Due Diligence legislation
Feralpi Group is committed to strengthening its management practices across the entire value chain, staying ahead of regulatory changes—such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—and promoting increasingly integrated sustainability. During the year, the Human Rights Policy was updated, and the Supplier Code of Conduct was drafted. Both documents are scheduled for approval in the first half of 2025. Specifically, the Code of Conduct is intended to be a clear guide for the Group's suppliers, establishing the principles that govern our collaboration and setting clear expectations on key issues such as ethics, sustainability, safety, human rights, and environmental protection, thereby extending our responsibility to the entire supply chain. Adopting the Code not only builds business relationships based on shared values but also improves risk management within the supply chain through better-qualified, aware, and monitored suppliers.
Dialogue and supplier qualification
Since 2018, Feralpi has been mapping its suppliers, particularly those for scrap metal, evaluating them on sustainability aspects such as quality, environment, health and safety, and ethics. A detailed questionnaire allowed for the qualification of 95.2% of scrap suppliers in Italy in 2024. For non-Italian suppliers, Feralpi collects environmental information to ensure compliance with required standards.
Since 2023, Feralpi has organized meetings like the "Scrap Suppliers Dialogue" at its Lonato del Garda headquarters, engaging brokerage firms and scrap suppliers to discuss sustainability in procurement processes. These meetings aim to identify opportunities for improvement and reduce ESG risks, addressing topics like human rights, environmental protection, and anti-corruption. These events are ongoing to expand the number of suppliers involved, following the action plan initiated in 2022. In 2024, internal audits also continued at a selection of strategic scrap suppliers.
In pursuit of this commitment with other strategic suppliers, the Feralpi Value Alliance was launched in 2024. This project aims for integrated sustainability along the entire value chain, transforming the relationship with strategic suppliers into a partnership based on ESG criteria. Through a collaborative and strategic approach, the initiative seeks to improve the sustainability performance of the entire Feralpi Group ecosystem. The goal is to integrate "sustainability as a standard" into procurement processes, reducing ESG risks and identifying opportunities for continuous improvement.
Code of ethics and Human Rights Policy
Feralpi requires all suppliers to accept its Code of Ethics. The Group has also established a Human Rights Policy, sent to suppliers during the contracting phase, to promote human rights principles along the supply chain. This commitment includes observing local laws and developing codes of conduct that respect human rights. Feralpi collaborates with suppliers to ensure respect for human rights and engages with customers to extend this focus throughout the value chain.
We are convinced that a business's success is closely tied to the sustainable development of its operating context and that only through the full involvement of its stakeholders can a company truly understand its purpose.
With this in mind, we have defined a stakeholder engagement strategy aimed at promoting open and constructive dialogue, consolidating transparent, stable, and lasting relationships with all our stakeholders. The Group's entire organizational structure is involved in engagement initiatives, while the Sustainability and Communications Department coordinates and facilitates the dialogue, ensuring a strategic and integrated approach.
Sustainable Dialogues is Feralpi's sustainability network. This engagement initiative was created to address a key need for sustainable business development: having a network of stakeholders interested in cultivating an ongoing dialogue with Feralpi Group on topics related to sustainable development.
Interested in joining our Network?
The Network is open to all external stakeholders of the Group: • Shareholders and investors • Suppliers • Local organizations • Institutions and certification bodies • Media • Third Sector • Industry and market • Agents • Universities and research institutes.