“Procurement: a key lever of the energy transition”

Does the energy transition also depend on procurement?

Yes, procurement is one of the strategic levers of the energy transition. ENGIE is an integrator: we purchase the products and services that enable us to design decarbonized solutions for our clients. Our ability to source sustainable and innovative technologies is critical to achieving our ambitions. Given its scale and global footprint, ENGIE is among the major buyers capable of helping define new standards and driving decarbonization across the upstream value chain.

What does procurement actually represent at ENGIE?

ENGIE spends approximately 18 billion euros per year with external suppliers for infrastructure, equipment, services, and technologies. We work with a network of 80,000 suppliers, ranging from SMEs to major international corporations.
Our ambition is to be the customer of choice for our top suppliers. This requires clear strategic direction, greater long-term visibility, and partnerships built on excellence.

How do you identify your “best suppliers”?

They are partners who are competitive (because the energy transition must remain affordable, with projects delivered on time and on budget); reliable and trustworthy (because the energy transition is not a one-off initiative but a long-term industrial transformation); and finally, partners who demonstrate excellence, (with no compromise on safety or integrity).

How do you build supplier loyalty?

It requires providing visibility on our project pipeline and structuring high-value agreements (whether through capacity reservations, volume pooling, or demand planning) to encourage a reciprocal long-term commitment from suppliers.
This expectation also extends upstream into project development. Involving partners early, during strategic planning phases, allows us to co-build more resilient supply chain solutions, provided the relationship is grounded in genuine transparency. This approach is reflected in strategic agreements supporting large-scale solar developments in the Middle East and North Africa, as well as other initiatives enabling new opportunities in South Africa for transmission and distribution projects, and in India for our renewable projects.

In a context of rising geopolitical tensions, how does ENGIE secure its supply chains?

We integrate risk management directly into our procurement strategy. We need, first, to protect the competitiveness of our current projects (in terms of price, schedule, and quality); and second, to develop new options to secure the long-term supply of critical equipment.
This requires trade-offs. For example, in the electrical transformer market, some suppliers may appear highly competitive in the short term. But ensuring long-term execution requires durable partnerships with strategic suppliers.

Is ENGIE a responsible buyer?

Responsible procurement is a core pillar of our procurement strategy. We have built a sustainable procurement program around three dimensions: decarbonization, human impact, and inclusion. These priorities are directly embedded in our supplier selection processes and supplier engagement initiatives.
On inclusion, ENGIE committed three years ago to increasing its spending with inclusive suppliers in France by 30%. We significantly exceeded that goal, more than doubling such spending over the period. We have recently renewed this commitment at the French Inclusive Procurement Forum with a new three-year target.

How do you arbitrate when economic performance conflicts with ethical requirements?

Ethics always comes first, because it is—and will remain—our license to operate. That is why we apply the highest ethical and compliance standards to our suppliers and subcontractors. In line with the Group’s duty of vigilance, we must identify ethical risks linked to supplier activities before signing contractual relationships. Through a rigorous due diligence policy, strict qualification processes, and continuous supplier monitoring, we ensure that performance is delivered responsibly throughout our supply chain.

Can procurement help strengthen European economic sovereignty?

Energy must remain both available and affordable. Today, energy security has become a major priority for governments, strongly shaping expectations toward companies such as ENGIE.
We place security of supply at the heart of our priorities. From a procurement standpoint, our role is to maintain balanced and reliable supply chains despite constant disruptions. 

In practical terms, this means:

• diversifying our supplier base to reduce dependencies;
• securing access to critical technologies and industrial capacities;
• while continuing to leverage global competition and synergies to remain competitive and agile.

Ultimately, what dimensions does ENGIE’s procurement strategy encompass?

Procurement provides 360-degree value. Beyond cost, this includes performance, security of supply, sustainability and innovation. Procurement’s mission is above all to create value for ENGIE, for its clients, and for the broader ecosystem.