E.ON’s commitment to social impact through ethical and sustainable procurement

In a world where sustainability, transparency, and social value are increasingly non-negotiable, our procurement practices help ensure that our operations reflect our values.

We recently spoke with David Elson, from E.ON’s global Supply Chain Management team, to explore how E.ON approaches ethical procurement across regions, working collaboratively with suppliers and delivering meaningful impact through strategic partnerships. We hear from him below:

Defining ethical procurement at E.ON

Ethical procurement at E.ON focuses on integrating social responsibility, regulatory compliance and sustainability into every aspect of the supply chain. This means working only with suppliers who align with our Supplier Code of Conduct, ensuring fair labour practices and avoiding any association with slavery or human trafficking as outlined in legislation such as the Modern Slavery Act 2015.

But it doesn’t stop at compliance. E.ON also seeks to balance operational efficiency with social and environmental responsibility. By embedding ethical considerations into procurement decisions, we contribute to our broader corporate social responsibility goals — supporting fair labour practices, promoting sustainable sourcing and encouraging suppliers to adopt environmentally friendly products and processes.

Transparency is another key pillar. Through regular monitoring, audits, and supplier reviews, we track performance, identify gaps, and drive continuous improvement. In the UK specifically, social value has become a formal part of our approach. Since 2021, government contracts have required a minimum 10% social value weighting, prompting E.ON’s Supply Chain Teams to prioritise social impact as a core procurement criterion.

Regional approaches and global alignment

Across all E.ON regions, ethical procurement is a shared priority. While the UK’s regulatory framework has created a strong emphasis on measurable social value outcomes, other regions interpret and implement ethical procurement based on their local laws and cultural contexts. Despite these differences, the underlying principles — sustainability, human rights, and accountability — are universally upheld.

Partnering with suppliers to improve ethical practices

Ethical procurement is a shared journey, which is why E.ON works closely with suppliers to raise standards and deliver better outcomes together. Through our Supplier Relationship Management (SRM) framework, we regularly assess supplier performance on metrics that include ethical conduct, sustainability, innovation and service delivery. Where there are areas for improvement, we co-develop action plans to address them.

Our approach also includes ongoing development initiatives such as Human Rights Due Diligence assessments and detailed supplier performance reviews. These help us proactively manage risk while promoting ethical growth and innovation across the value chain.

Ethical procurement in action

Two recent projects highlight how E.ON’s procurement strategy delivers real world impact.

The first was a global tender conducted in 2024 for the supply of merchandise and promotional items across 10 regions. The evaluation process focused heavily on sustainability, local sourcing and value for money. All items were required to be sourced and fulfilled within each country to reduce emissions from shipping and support local economies. Prominate was selected as our Group partner, and the benefits have been clear — reduced carbon footprint, cost savings, and enhanced sustainability reporting through packaging and labelling requirements.

The second example is our strategic partnership with Segen Limited, the UK’s leading distributor of solar PV and energy storage systems. Working closely with Segen, we’ve been able to integrate more sustainable practices into our operations. This includes sourcing ethically produced solar equipment, eliminating the use of polystyrene packaging, and using zero-emission vehicles for delivery. Together, we’re also advancing a circular economy mindset by reducing single-use materials and optimising logistics through AI.

What’s next for ethical procurement?

The future of ethical procurement in the energy sector is being shaped by several key trends.

Sustainability expectations are rising — driven not only by regulations but also by consumers demanding more responsible business practices. At the same time, advances in technology, particularly AI and data analytics, are offering new ways to optimise procurement strategies and enhance transparency.

Regulatory frameworks are evolving rapidly, requiring agility and constant reassessment of supply chain practices. Geopolitical tensions continue to impact global procurement resilience, making it even more important to factor ethical and sustainability performance into sourcing decisions. Meanwhile, investments in decarbonisation and net-zero targets are influencing how and where companies source their goods and services.

Social value is becoming a long-term focus as well. In initiatives like our 15-year partnership in Coventry, E.ON is exploring new opportunities with suppliers to support local employment, offer apprenticeships, and provide work experience for students — showing how procurement can create lasting community benefits.

Making important decisions every day

At E.ON, ethical procurement is not just a business requirement — it’s a reflection of who we are. By championing responsibility, integrity and collaboration in every procurement decision, we’re helping to build a cleaner, fairer and more resilient energy future.