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Supply Chain Management Strategy

Jun 1, 2023

Supply Chain Sustainability Strategy (T-ESG®)  

To guarantee the correct sustainable management of the T-ESG ® capacity, the Supply Chain Process, has focused its efforts on the development and strengthening of the following aspects:

REACTIVATION, GROWTH AND
SUSTAINABILITY OF REGIONAL
ECONOMIES

SUPPORT CLEAN ENERGY
GENERATION STRATEGY

SCOPE 3 EMISSIONS DATA
CAPTURE AND MEASURE

CIRCULAR ECONOMY

SMART SYSTEMS FOR ENERGY MANAGEMENT IN COMPANY’S FACILITIES

Through these aspects, the Supply Chain contributes to Ecopetrol’ s strategy about climate change impact, water neutrality, sustainable territorial development, renewable energy, and fuel quality.

Aiming to achieve these objectives, the Supply Chain Process developed initiatives which contribute to:

 

  1. Generate a sustainable economic development of territories, promote local employment, strengthening inclusive labor linkage, providing opportunities for people with disabilities, youth, ethnic groups, victims of armed conflict and women.

  2. Greater participation and support for entrepreneurs through the initiative of diverse productive entrepreneurs contracting, contributing to the development of MSMEs, generating inclusive, non-oil&gas jobs (without exclusive dedication to Ecopetrol).

  3. Develop environmental awareness among suppliers through the Supply Environmental Agenda that focuses on 4 thematic aspects: Decarbonization, Waste and Materials, Water and Biodiversity, and 2 transversal fronts: Supply and Information and technology.

Considering that Technology has a main role in the implementation of the T-ESG® strategy, the Supply Chain Function manages high-level knowledge of macro trends, sectors and industries, through the prospective analysis of external and internal variables, framed in the co-creation of scenarios that support decision-making in negotiation and/or procurement strategies, generating solutions that transform the way supply chain strategies are approached.

To ensure compliance with the commitments in terms of sustainability (T-ESG®), the Supply Chain Process outlined the following objectives:

Guarantee a healthy, clean and safety operation (HSE):

Measure safety performance indicators such as Total Recordable Incident Frequency (TRIF) and implement campaigns to strengthen the HSE culture in the Company.

Energy Transition:

Support the diversification of low-emissions businesses through strategic coverage of supply needs.

T-ESG®:

Generate value through sustainability:

Environmental management:

  • Greenhouse gases (GHG) emissions reduction (scope 3: suppliers)

  • Suppliers decarbonization

  • Waste management

Economic and inclusive growth:

  • Generation of diverse and inclusive jobs

  • Local contracting of goods and services (Ecopetrol and Suppliers)

  • Participation of entrepreneurial businesses in the supply chain

 

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