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Strategy for Integrated Land Management

May 7, 2024

Ecopetrol Group Strategy for Integrated Land Management

The Strategy for Integrated Land Management is aimed at contributing to territorial development and business sustainability along the value chain of each business line of the Ecopetrol Group. This is achieved by building relationships of trust with stakeholders present in the territories and by making investments that translate into shared prosperity, within a security framework for respect and promotion of human rights. This general purpose is structured through an orderly set of activities grouped in three mission and one cross-cutting component.

The strategy is implemented through the following mission components:

  • Relationship with Society, Community, and Government: to build and consolidate relationships of trust based on respect for life and other fundamental rights and permanent social dialogue intended to reach joint visions of the territory, seeking comprehensive solutions to territorial conflict situations.
  • Creation of social value: contribute to territorial development through strategic, relevant, and impactful investment, promoting sustainability, inclusion, and territorial peace, through the value chain, in line with local, regional, and national government commitments and Sustainable Development Goals - SDGs. Also, through management of partnerships and identification of business models that involve community participation.
  • Physical security with a Human Rights approach: managing the security of people, infrastructure, and operations within a framework of corporate Huan Rights due diligence.

The three components are cross-cutting for financial and administrative planning, risk management, continuous improvement, and excellence, and are coordinated through an operating model for territorial management, composed of processes and sub-processes. (See image)

Image. Components of the Strategy for Integrated Land Management

Source: Vice-Presidency of Sustainable Territorial Development

At the same time, this strategy has cross-cutting approaches understood as integrating guidelines in the three (3) components:

 

  • Fair Energy Transition: addresses the proactive management of the territory, which considers social-labor reconversion, sustainable alternatives for petroleum territories, and democratization of energy resources and their management in an associative framework, in line with climate change challenges and commitments to reduce greenhouse gas emissions and decarbonize economies.
  • Diversity and Inclusion: commitment to equity and non-discrimination, recognizing and respecting diversity in all its expressions and promoting collective awareness on the value of difference in achieving peace and reconciliation.
  • Innovation and Technology: addresses the integrated management of the territory from an innovation perspective, understood as the capacity to create and disseminate new rules and practices to strengthen the mentality for change and generate solutions to problems in an effective and sustainable manner, adding value to the communities, with the support of technology.

 

I) RELATIONSHIP WITH SOCIETY, COMMUNITY AND GOVERNMENT

The Ecopetrol Group recognizes a decided, inclusive, and permanent relationship with Society, Community and Government stakeholders, as a strategic component in the integrated land management for building and consolidating long-term trust relations, agreeing shared visions of the territory, building local development agendas, and transforming the conflict.

It proposes the strengthening of communication spaces as participative, inclusive, and propositive approaching and strategic dialogues, plus access to information in a transparent and timely manner. Furthermore and, in line with SosTECnibility® and the principle of innovation and technology, new social dynamics in the digital era imply reconsidering the way of interacting, incorporating the use of technological and social innovation tools intended for iterative updating of territorial characterization and a permanent communication with the stakeholders in the territory.

Actions are considered within the framework of five mission subcomponents and a cross-cutting component: i) dialogue and social agreement, ii) citizen participation and commitment management, iii) internal coordination, iv) institutional and community strengthening, v) territorial planning, vi) monitoring, analysis, and prospection.
 

II) CREATION OF SOCIAL VALUE

The Ecopetrol Group recognizes that the development and growth of its value chain has contributed to the creation of social value, evidenced in the growth, development, and transformation of the regions, working hand in hand with national and local authorities, and with various partners. All of the foregoing is intended to create sustainability, inclusion, territorial peace, and improvement of the quality of life of the people. Such contribution in the long term will consolidate high levels of trust.

The criteria that guide the materialization of Ecopetrol Group’s contribution to the country’s territorial development imply: i) contribute to the development and future vision shared with various actors in the territory, ii) make efforts especially concentrated in the rural areas, so as to support the closing of gaps, iii) ensure that the contributions are aligned with the cross-cutting approaches contained in this strategy, and iv) building and planning through participative planning and social dialogue processes.

The Ecopetrol Group is committed to the 2030 Agenda and the Sustainable Development Goals – SDGs of the United Nations. It recognizes the comprehensiveness and interdependence of all the SDGs and, therefore, although it recognizes that there are some on which it has greater impact, it considers them a comprehensive, coherent agenda. (See image)

Image. Sustainable Development Goals

Source: PNUD, 2016

 

The contribution of the Ecopetrol Group to the creation of social value is materialized through social investment for territorial development, which is planned, structured, and executed through a portfolio of investments for territorial development, as well as through community business models, alliances for development, and management of corporate foundations. The social value created is continuously measured, assessed, promoted, and communicated.

Social investment for sustainable territorial development

The Ecopetrol Group's social investment is the business practice that, in accordance with the corporate bylaws, allows making contributions intended to accompany an integrated management of the territory, while contributing to the territorial development of the areas where the Group's companies have an interest, or in regions of the country where such contributions are aligned with the business strategy.

Social investment is materialized through projects that are identified, agreed upon, and prioritized through spaces of social dialogue with the stakeholders of the territory, in accordance with shared visions and agendas for coordinating efforts around defined collective purposes. In this sense, initiatives and projects must be identified as per the aforementioned guiding criteria. Also, these must be proposed, structured, and executed in accordance with planning standards, institutional competencies, technical thoroughness, and implementing risk management and controls. The creation of social value is focused on three objectives, referred to as strategic options:

a) Dynamization of local economies

Contribute to the diversification and dynamization of local economies and the promotion of productive employment, strengthening territorial vocation and capacity of the various sectors of the economy, with special emphasis on the rural, community, and popular economy. All of the foregoing for encouraging inclusive rural development, promoting entrepreneurship, and consolidating micro, small and medium-sized enterprises, green businesses, social innovation initiatives through the generation of capacities, added to strengthening road and community infrastructure to encourage trade, connectivity, and rural and urban social cohesion.

b) Education

To develop interventions to improve quality, coverage, and school retention, primarily, but not limited to, the Ecopetrol Group's areas of interest, and thus generate social capital and convey culture and democratic value. Similarly, it is necessary to promote the creation of skills for working with the premise of adapting capabilities to face energy transition challenges.

c) Closing gaps in access to public services

To have the technical, scientific, and technological capacity to promote access to basic services such as natural gas, energy, potable water and sanitation, thus leveraging the justice of energy transition, understanding corporate purposes and objectives and in the territories where the greatest gaps are evident. Similarly, and being aware that contributing to the full exercise of rights promotes the quality of life and well-being of the population, the Ecopetrol Group encourages access to health services and actions aimed at promoting it to create conditions for enjoyment of their rights.

 

III) PHYSICAL SECURITY FOCUSED ON HUMAN RIGHTS

The Ecopetrol Group defines the Enabling Plan as an instrument aimed at implementing a preventive and anticipatory model for managing the security of people, infrastructure, and operations, whose core is the cultural principle of "Life First". (See image)

Image. Physical Security and Human Rights Management Enabling Plan

Source: Vice-Presidency of Sustainable Territorial Development

 

The pillars that support the management of this plan are:

  • Management in the protection of people: define and implement a physical security model focused on protecting the lives of workers during the performance of their duties.
  • Management in the protection of the Nation's critical and strategic infrastructure: define and implement cost-effective solutions and delay barriers to have self-protected assets to prevent and/or reduce the security impact on people and operations in the territory. The management in the protection of the Nation's critical and strategic infrastructure is fundamental, as these assets guarantee the country's supply, the provision of essential public services, and constitute the fundamental pillar of energy security.
  • Management for the viability of the operation: Making viable the development of the company's operations, projects, and new ventures to support the energy transition, the well-being of the communities, and the provision of essential public services to all Colombians.

Mission components

A decisive, inclusive, and permanent relationship with stakeholders - Society, Community, and Government - allows us to build long-term relationships of trust, agree on shared visions of the territory, build local development agendas, and transform the conflict situation.

This component proposes the strengthening of democratic, participatory, inclusive, proactive, and strategic communication spaces, through social dialogue and access to information in a transparent and timely manner, relying on principles of social innovation and incorporation of technological tools aligned with the company's SosTECnibilidad® Strategy.

This component is also developed from the following subcomponents: i) dialogue and social agreement, ii) citizen participation and commitment management, iii) internal coordination, iv) institutional and community strengthening, v) territorial planning, vi) monitoring, analysis, and foresight.

Subcomponents

1. Dialogue and social agreement

According to Ecopetrol Group's guide for social dialogue, this is a concerted, democratic, and inclusive process conducted between Ecopetrol Group companies and social actors in the territory. It is aimed at building trust and managing interests based on common objectives and shared visions of the territory, allowing to address problems in an assertive and constructive manner, contributing to the sustainable development of the territories where it is present.

The social dialogue processes are intended to strengthen the following:

  • Trust building: these are spaces for rapprochement, mutual recognition, and exchange of ideas on common interest themes, which may lead to the agreement of a future dialogue agenda.
  • Development shared vision: spaces to build consensus around common aspirations and goals for the sustainable development of a territory to align efforts and resources among dialogue participants.
  • Conflict transformation: these are spaces that are convened to identify, prevent, resolve, and transform conflicts that may arise between Ecopetrol and the Group companies with the social actors in the territory

The social dialogue must take place within the framework of respect and promotion of legality and human rights, transparency and good faith, active listening and recognition, reciprocity, solidarity, responsibility in democratic, plural, and inclusive spaces.

Dialogue and social agreement fostered by Ecopetrol to build relationships of trust.

Within the framework of dialogue and social agreement at the national level, Ecopetrol conducted 57 social dialogue processes and 71 relationship initiatives in 2023, interacting with 834,275 people, seeking to build relationships of trust, strengthen the social fabric, consolidate a culture of legality, respect, and promotion of human rights, coordinate efforts focused on sustainable development and peace in the territory, added to strengthening cultural heritage and traditions, promoting sports, recreation, health, and pedagogy concerning industry, energy transition, and regional coordination with the aim of making the company viable in the territory.

The following is a summary by region:

Within the framework of dialogue and social agreement at the national level, Ecopetrol conducted 57 social dialogue processes and 71 relationship initiatives in 2023, interacting with 834,275 people, seeking to build relationships of trust, strengthen the social fabric, consolidate a culture of legality, respect, and promotion of human rights, coordinate efforts focused on sustainable development and peace in the territory, added to strengthening cultural heritage and traditions, promoting sports, recreation, health, and pedagogy concerning industry, energy transition, and regional coordination with the aim of making the company viable in the territory.

The following is a summary by region:

 

Table. Dialogue processes and social agreement by region 2023

 

Region

Social dialogue processes

Relationship initiatives

Andean South Pacific

12

16

Orinoquía

19

16

Caribbean

8

9

Piedemonte

5

18

Central

13

12

TOTAL

57

71

 

Source: Vice-Presidency of Sustainable Territorial Development, Dialogue and Relationship Management

In the 57 social dialogue processes promoted by Ecopetrol, 191 dialogue spaces were held with communities and local institutions, aligned with trust building (46.1%), development shared vision (10.5%), and conflict transformation (43.5%).

 

Table. Number of participants per social dialogue process by region 2023

 

Region

Total number of participants by stakeholder

Community

Non-government institutions

Guilds

Authorities/ institutionality

Contractors / Affiliates

Andean South Pacific

906

0

120

78

62

Orinoquía

1,171

2

54

34

319

Caribbean

613

1

0

2

0

Piedemonte

988

8

10

145

139

Central

461

17

2

87

56

Total

4,139

28

186

346

576

Source: Vice-Presidency of Sustainable Territorial Development, Dialogue and Relationship Management

Likewise, in the 71 relationship initiatives conducted by Ecopetrol, it was possible to interact with 829,000 people in 1,417 spaces, with the community and the local authorities and institutions being the main social actors involved.

 

Table. Number of participants per relationship initiative by region 2023

Region

Total number of participants by stakeholder

Community

Non-government institutions

Guilds

Authorities/ institutionality

Contractors / Affiliates

Andean South Pacific

8,946

28

297

586

129

Orinoquía

38,771

20

151

436

401

Caribbean

8,485

1,238

350

491

0

Piedemonte

701,065

5

75

38

0

Central

67,165

10

50

263

0

Total

824,432

1,301

923

1,814

530

 

Source: Vice-Presidency of Sustainable Territorial Development, Dialogue and Relationship Management

 


2. Citizen participation and commitment management

Citizen participation is a fundamental right underpinning Colombian democracy and one of the purposes of the Government (Articles 2 and 40 of the Political Constitution of Colombia), which grants the possibility for all citizens to participate and actively intervene in the control of public administration.

To maintain relationships of trust with the stakeholders, it is necessary for Ecopetrol to identify, recognize, and fulfill the commitments that have been acquired in the regions where it operates. Hence, it is necessary to manage commitments up to their conclusion.

Commitment management consists in ensuring their compliance as derived from Ecopetrol's interaction with its stakeholders. This implies the registration, monitoring, and fulfilling of commitments set out in the responses given to Petitions, Complaints, Claims and Suggestions – PQRS (for its acronym in Spanish), as well as those agreed upon in engagement scenarios. Said management is regulated in the procedure for the management of commitments with stakeholders and the instructions for the management of commitments with Society, Community, and Government. It is measured with the indicator of commitments management with stakeholders, which accumulated results in 2023 reach 100%. Its evolution in the past 5 years is as follows:

Graph. Management of commitments with stakeholders from 2019 to 2023

 

Source: Citizen Participation Office


3. Internal coordination

With the aim of contributing in a coordinated manner to a comprehensive management of the territory, actions are implemented by the companies of the Ecopetrol Group, as well as between cross-sectional areas and business lines and segments, which seek to establish dialogue and internal processes to align and provide coherence to their actions in the territories. Furthermore, they intend to nurture the principle of strategic planning from a multidisciplinary vision, ensuring integrity in the way of approaching the territory, considering the particularities and mission objectives of each business line.

Similarly, Ecopetrol has strengthened its relations and coordinated work with contractor companies, guilds, affiliates, and partners, seeking to improve their management in the territory.

4. Institutional and community strengthening

In 2023, institutional and community strengthening becomes relevant as a lever for the relationship with stakeholders, Society, Community and Government, with the aim of developing organizational and communicative capacities in the territory for the building of shared visions, the transformation of conflicts, and the promotion of long-term relationship modes. The qualification of community and institutional interlocutors contributes to consolidate conditions for constructive social dialogue, added to the creation of social and institutional capital, the deepening of democracy, citizen participation, peace, and collective building of the public setting in the territory.

In this vein, through alliances, coordination, and synergies with the public and private sectors, civil society and/or international cooperation, and within the framework of concurrence with pertinent public policies, the plan is to establish mechanisms that enable community organizations, ethnic groups, and other social collectives to strengthen their organizational capacity relying on experience, good practices, and relevant methodologies generated by the Ecopetrol Group and other organizations.

In 2023, 51,611 people benefited from programs and projects intended for institutional and community strengthening. Projects completed in 2023 included the strengthening of youth leaders in Puerto Wilches (Santander) in partnership with the United Nations Office on Drugs and Crime - UNODC, whose main result was the training of 180 young people as community leaders, and the provision and strengthening of the Women's Houses in the department of Huila, with 1,600 beneficiaries.

Finally, within the framework of the Co Crea mechanism, the Crea Sonidos (Creating Sounds) project was supported, which seeks to ensure that new musical talents are not only known by the music industry and the public, but also to train beneficiaries by providing them with tools to protect their patrimonial rights, and conduct administrative and cultural management, so that music becomes a sustainable enterprise for promoting local culture.

5. Territorial planning

Planning in the territory is based on annual territorial characterizations based on mapping and systemic analysis of variables inherent in the identity and context of each region, analysis of national and regional dynamics, conflict trends in previous years, and the study of territorial impacts, benefits, risks, and opportunities. Based on the foregoing, the Integrated Land Management Plans are built and coordinated with the projects and assets operational plans.

Hence, in 2023, integrated land management plans for 2023 - 2026 were set up for 10 territories, in an exercise led by the Vice-Presidency of Sustainable Territorial Development, in coordination and with the active participation of cross-cutting, support, and business areas.

6. Monitoring, analysis, and foresight

To strengthen decision-making tools, based on identification, description, analysis, and foresight, the monitoring, analysis, measurement, and follow-up of critical variables that may impact the territories are performed, as well as of incidents and alarms, to enable the anticipation and knowledge building to thus achieve an informed decision-making. Likewise, a systematic knowledge of the setting is developed from the monitoring and assessment of alarms and incidents, identifying causes, situations and territorial dynamics leading to the establishment and orientation of regional and national Setting Situational Analysis Spaces – EASE (for its acronym in Spanish) aimed at internal coordination and decision making at regional and national level.

With respect to the analysis and foresight for prevention and anticipation, through the Business Environment Observatory, the description, understanding, reflection, analysis, and foresight of the dynamics of the setting in which the Ecopetrol Group operates are performed, thus allowing planning, prevention, informed decision making, and resolution of conflicts that may affect the business activity.

Energy communities

The National Development Plan 2022 - 2026 Colombia, world power of life, defines that "users or potential users of energy services may establish energy communities to generate, commercialize, and/or efficiently use energy from Non-Conventional Renewable Energy Sources – FNCER (for its acronym in Spanish), renewable fuels, and distributed energy resources".

Ecopetrol, in its leadership role in the Fair, Equitable, and Inclusive Energy Transition in Colombia, and in line with its interest in exploring new models of community participation in renewable energy projects, has collaborated with the Institute for Planning and Promotion of Energy Solutions - IPSE (for its acronym in Spanish), the Mining and Energy Planning Unit - UPME (for its acronym in Spanish), the Ministry of Mines and Energy - MME (for its acronym in Spanish), Hocol and Cenit, in the consolidation of a portfolio of projects with the potential to become Energy Communities.

The definition of this initial portfolio enables the Ecopetrol Group to determine its role and level of involvement, the dimensioning of technical, legal, and financial variables, and the impact and return of this mechanism. This portfolio would have an impact on nearly 30,000 people with access to renewable energy for the transformation of their territories.

By the end of 2023, six energy community projects with socio-environmental benefits were structured, with their implementation phase starting in 2024. In the medium term, it is expected to consolidate a high social impact and self-sustainability line.

The following departments with possibility of implementing energy communities have been identified:

  • La Guajira
  • Putumayo
  • Nariño
  • Sucre
  • Meta
  • Bolívar
  • Cauca
  • Santander
  • Norte de Santander

On the other hand, the Energy Communities Forum was held with face-to-face participation of 90 people, and 160 connected via streaming; the panels included experts who shared the opportunities and challenges that communities, national government institutions, and companies find in the energy communities mechanism defined in the 2022-2026 National Development Plan. This forum resulted in the creation of a multi-stakeholder working group intended to strengthen the impact of energy communities in Colombia and to positively influence public policies associated with energy communities based on the reality of the territory.

 

Ecopetrol conducts social investment projects in different regions of the country, which are aligned with its corporate strategy and intended for contribution to the sustainable development of the territories where it operates.

Social investment takes the form of voluntary and mandatory projects, which are identified, agreed upon, and prioritized in social dialogue spaces and are formulated, structured, and executed with technical rigor. The creation of social value is focused on three objectives, referred to as strategic options:

  • Dynamization of local economies.
  • Education.
  • Access to public utilities.

The strategic options are deployed in 5 investment lines, contained in the Company's Territorial Development Portfolio:

  1. Education, Sports, and Health.
  2. Inclusive Rural Development.
  3. Entrepreneurship and Business Development.
  4. Public and Community Infrastructure.
  5. Public Utilities (water, electricity, and gas).

Investment lines

Strategic option: Education

Education and sports ('Ecopetrol Educa' - Ecopetrol Educates)

Investment in this line is aimed at promoting quality, higher education coverage, and school retention; additionally, job training to generate capital and social mobility facilitate the transmission of culture, promote equity, peaceful conflict resolution, diversity and inclusion, and democratic values. As a goal for 2024, Ecopetrol aimed to benefit 626,333 children and young people; however, this goal was surpassed in 2023, reaching 736,252 beneficiaries with a compliance of 118%, equivalent to 9.6% of the enrollment of the country's public elementary and middle school institutions. Included below are the following statistics of the beneficiaries:

  • 49.5% are women
  • 50.5% are men
  • 5.5% are indigenous
  • 2.5% correspond to blacks and Afro descendants
  • 6.4% are Venezuelans
  • 1.6% are students with disabilities

In 2023, 150,203 students benefited from initiatives such as the following:

Greater retention: implementation of actions for children to remain in the school system, and make good use of their free time:

 

  • Provision of school furniture: in 2023, a provision of school furniture was provided to benefit more than 65,549 students from public educational centers in the departments of La Guajira, Meta, Putumayo, Cundinamarca and Huila.
  • Provision of school kits: in 2023, 67,527 kits were delivered to students and teachers at educational centers in Ecopetrol's area of interest in the departments of Meta, Casanare, Arauca, Cundinamarca, Santander, Norte de Santander, Antioquia, Putumayo, La Guajira, Bolívar (Cartagena, together with Reficar).
  • Musical schools: using music schools as a strategy for children to remain in the classroom is a mechanism implemented by Ecopetrol since 2017. This has resulted in over 98% of the beneficiaries remaining in the educational system. In 2023, in partnership with the Fundación Nacional Batuta, we continued executing projects that have benefited 2,609 children and young people in Villavicencio, Acacías, Castilla La Nueva, Guamal and Puerto Gaitán (Meta); Aguazul, Yopal, Tauramena (Casanare); Santa María (Boyacá); and Ubalá and Medina (Cundinamarca). Furthermore, Ecopetrol supported the Music strategy in the borders, which benefited 1,704 children and youth. In discussions with the current National Government, it has been determined that this strategy contributes to the Comprehensive Training Centers Program of the Ministries of Education, Culture and Equality.
  • Provision of technology for public educational institutions: in the first quarter of 2023, the partnership with Computadores para Educar concluded, which benefited more than 2,100 students in 8 municipalities, with comprehensive digital interventions in 21 educational centers to provide them with internet access.

 

Better quality: promotion of teacher training, provision of teaching material, and monitoring for the appropriation and sustainability of investment.

 

  • Ecopetrol Goes to School program: this initiative seeks to promote educational quality through the distribution of educational material relative to the oil industry. In 2023, a third phase was performed, which benefited more than 6,500 students, with emphasis on hydrocarbon exploration. It is expected that this program will provide children and young people with more tools to debate and make proposals related to industry issues, relying on truthful information.
  • Teachers' training, and delivery of educational material to encourage teachers to update themselves and have better educational material in the classrooms: 20,592 students and teachers from educational centers in the country were benefited in 2023.

Greater coverage: expansion of the offer in higher education, and improvement of the educational infrastructure:

  • Expanded coverage to higher education: Ecopetrol promotes training for employment and encourages the best students from the regions in which it operates, through the following initiatives
    • In the 37 years of the Bachilleres Ecopetrol program (Ecopetrol High School Graduates), a total of 1,761 scholarships have been granted. In 2023, 94 new scholarships were awarded in a ceremony presided by the president of the company, in addition to 140 in the current cohorts. Of the total number of beneficiaries, 54% are men and 46% are women.
    • Since this year, the beneficiaries are selected through a national public call for applications, which gives priority to students from rural areas of the country, that is, who have completed their basic secondary education, in institutions of the rural-official sector, from ethnic communities, from Ecopetrol's areas of interest, and from other social investment programs of the company.
    • Through the Utopia program of La Salle University, Ecopetrol supported 40 students, of which 13 graduated in 2023, in the undergraduate Agronomy Engineering program. This program seeks to train leaders on skills for the transformation of their regions, as the graduation paper of the beneficiaries must materialize in projects that contribute to the rural development of their places of originIn partnership with the SENA, to promote technical and technological training and certification by competencies and training for employment and entrepreneurship, interventions are being conducted in Barrancabermeja (Santander) and Cartagena (Bolivar), which will certify beneficiaries with training on work at heights and confined environments at the National Center for Teaching and Research in Construction Techniques - NCCER.
    • In alliance with the Tecnológica de Bolívar University, 12 scholarships were awarded in 2023 to promising young people from areas in the surroundings of the Cartagena Refinery. These scholarships complement the support to 22 other young people have been granted Boomeranng scholarships from the Traso Foundation.

Strategic option: Dynamization of local economies

Inclusive rural development ('Ecopetrol al Campo' - Ecopetrol to the countryside)

Investment in this line seeks to link rural communities to productive chains, based on taking advantage of market opportunities, strengthening capacities in the territory, plus sustainable use of natural resources. As a goal for 2024, Ecopetrol has proposed to benefit 4,475 small producers; by 2023, it benefited 12,562 producers, reaching the goal ahead of schedule with a compliance of 2.8 times what was planned. This translates into prosperity with strategic, relevant, and impactful social investment, promotion of sustainable territorial development, inclusion, and territorial peace, in line with the commitments of the local, regional, and national government and the Sustainable Development Goals - SDGs, joining efforts with national and international allies.

In 2023, 19 projects were completed, involving 8,641 peasant families in the departments of Bolívar, La Guajira, Santander, Norte de Santander, Arauca, Casanare, Boyacá, Meta, Cundinamarca, Huila, and Putumayo. The following projects are to be highlighted in the inclusive markets and sustainable use components:

  • The program aimed at building rural entrepreneurial capacities, confidence, and opportunity - El Campo Emprende - is an initiative led by the Ministry of Agriculture and Rural Development and Ecopetrol, which in 2022 and 2023 supported the structuring and co-financing of more than 422 associative rural enterprises in 33 municipalities and 11 departments to improve living conditions, income, and employment in the Colombian countryside. The program has benefited 4,465 rural families, with more than 70% participation of rural youth and women. This program also contributed to strengthen institutional coordination and compliance with the objectives of the Government's National Development Plan, in promoting public-popular initiatives for agro-industrial transformation.
  • The Sustainable Agribusiness Model Program - MAS Meta, implemented in partnership with the Los Andes University, was aimed at supporting the consolidation of agribusinesses of producer organizations in the department of Meta and their link to value-added markets, contributing to the sustainable development of production chains and territorial development in economic, social, and environmental terms. In 2022 and 2023, 20 producer organizations and 320 peasant families from 8 municipalities in the department of Meta increased their sales by more than $500 million pesos in the fruit, coffee, and cocoa lines, which were commercialized under more than 10 new developed and registered brands. Further, over 250 people were trained and graduated in agri-food programs in the CAMPUS MAS platform. In addition, thanks to the optimization of their productive systems, 246 tons of CO2 equivalent per year were avoided, and 85 million liters of water were efficiently used.
  • Within the framework of implementation of the Comprehensive Agricultural Solutions Program - Agrosol, which purpose is to strengthen family farming and food security, 7 projects were completed, aimed at providing technical assistance, training, and support to productive systems among rural inhabitants of the departments of Meta, Boyacá, Putumayo, Norte Santander, Casanare, Arauca, and Santander. The deployment of this program in the Piedemonte region is to be highlighted, where it has had a positive impact on the strengthening of the productive vocation, the development of sustainable cattle farming, with more than 578 peasant families, plus the relationship between Ecopetrol and the communities in areas of interest.

In addition, 26 projects involving 6,000 rural families, 45% of whose participants are women and 38% are rural youth, continue to be implemented with the aim of contributing to close the gaps between the commercial opportunities of the territory and the productive capacities of rural families, within a framework of economic, social and environmental sustainability, in partnership with the Food and Agriculture Organization of the United Nations - FAO, the United Nations Office on Drugs and Crime - UNODC, the Society for International Development Cooperation - SOCODEVI (for its acronym in Spanish), the Ministry of Agriculture and Rural Development, the Governor's Office of Huila, and 5 framework contracts with operators of the Integrated Agricultural and Livestock Solutions - Agrosol program.

Among the projects now being implemented, a new agreement was signed with the Food and Agriculture Organization of the United Nations - FAO to support the consolidation of the agrifood system in Acacías, Castilla La Nueva, Guamal, Villavicencio, Cubarral and Puerto Gaitán (Meta) as a transforming axis for territorial rural development with the inclusion of family peasant organizations, sustainable production systems, agribusiness, and efficient logistics. This continues the success achieved in the first phase of the previous agreement with the Meta Food Supply Network, which was recognized by the United Nations as a "Unique and innovative experience in Latin America and the Caribbean". This second phase will expand coverage to more than 2,700 peasant families and 33 organization in these 6 municipalities. In the first months of execution, sales for over $200 million pesos have been achieved in local, regional, and institutional markets.

In May 2023, the III Oil and Agriculture Forum "Together for Development" was held in Villavicencio (Meta); it was attended by more than 250 representatives of producers' organizations, allies, territorial entities, Ecopetrol officials, and other regional stakeholders. At the same event, the ECO Chocolates brand was launched, which is produced by rural organizations supported by Ecopetrol and the MAS Meta program, and commercialized by the Ecopetrol Store.

In 2023, four new cacao processing plants were inaugurated in El Castillo, Granada, and Acacías (Meta), as part of the Agroemprende Cacao program, in partnership with SOCODEVI, strengthening the productive and commercial capacity of 10 producer organizations and more than 1,000 peasant families.

In 2023, several producer organizations supported by Ecopetrol received national and international recognition for the quality of their products, including the national Cacao de Oro and Expocafé Orinoquía awards, and the international Cocoa of Excellence award in Paris.

Entrepreneurship and business development ('Ecopetrol Emprende' - Ecopetrol Entrepreneurs)

The purpose of investment in this line is to strengthen the business fabric in the areas of interest by developing capacities for entrepreneurship and innovation, to favor income generation and formal employment. Ecopetrol has set the goal to reach 5,878 beneficiaries in 2024. By 2023, 20,420 entrepreneurs, MSMEs and young people had benefited, reaching the goal ahead of schedule with a compliance of 3.5 times what was planned, of which 8,670 were benefited in 2023.

  • Entrepreneurial Development

Among the most relevant initiatives in 2023, the consolidation of the 'Ecopetrol Emprende' national program stands out, which is conducted in partnership with CREAME, a Business Incubator, which intends to support economic reactivation and diversification through specialized business support for the modernization of businesses, renovation or acquisition of machinery, adoption of technology, materials and supplies, and connection with sources of financing and commercial scenarios. In its third year, this program has reached 46 municipalities in 12 departments and will benefit 4,110 entrepreneurs and MSMEs with the generation of an entrepreneurial mindset and culture, of which 2,840 are receiving specialized business support and solutions. Of the beneficiaries, 48% are women, 19% are young people between 18 and 28 years of age, 16% are victims of the conflict, and 6% belong to ethnic populations. 34% of them carry out their businesses in rural areas. Some of the achievements that stand out since it started are:

  • The entrepreneurs and MSMEs have generated sales amounting to $230 billion pesos.
  • The increase in formal employment has increased by 10%.
  • 46% of entrepreneurships (business ideas) have been formalized.
  • 85% have improved their use of social networks and digital skills to connect globally.
  • Their sales increased by 35%, while their costs decreased by 13%, which translates into greater income generation.

In 2023 the, National, Orinoco, Barrancabermeja (Santander), Yacopí (Cundinamarca), Villavicencio (Meta), Uribia, Manaure, and Riohacha (La Guajira) versions of the program were completed, benefiting 1,015 entrepreneurs and MSMEs.

On the other hand, the implementation of the second phase of the 'Reactívate INN' program began in partnership with the Cartagena Chamber of Commerce, which, in 2024, will reach 1,084 beneficiaries from different economic sectors. The execution of this project is underway, providing support to the MSMEs to improve their productive and commercial operation, and to young entrepreneurs by providing them with innovative business ideas for their materialization.

In addition, the program to strengthen 90 craftsmen in Uribia, Manaure, and Riohacha (La Guajira) was completed and the project "Positioning Uribia as the indigenous capital of Colombia" is underway, in partnership with the Magdalena University, which seeks to strengthen the business fabric and generate income and quality jobs for tourism service providers and craftsmen in Uribia (La Guajira). This project provided training for 70 craftswomen who received kits to strengthen their activities, 135 tourism providers were trained, and the Forum for Promoters of the Solidarity Economy and the Uribia Color and Wayuu Art Craft Fair were held to promote business skills and identify opportunities.

  • Promotion of innovation and entrepreneurship mentality, skills development

It intends to train young people in the mentality and culture of entrepreneurship and innovation, contribute to the generation of soft and hard skills, overcome inequality gaps, and motivate them to become agents of change in their territories; in 2023, 7,655 young people benefited. Through the alliance with the UNLAB 4.0 Innovation Laboratory of the National University of Colombia, the implementation of the Youth 4.0 Innovating and Transforming Territories program continued, benefiting 4,611 young people between 14 and 28 years of age in Puerto Wilches (Santander), Tauramena (Casanare) and Villavicencio (Meta); the program 'Sacúdete con los Jóvenes del Territorio' (Shake with the Youth in the Territory) was also completed, benefiting 3,044 young people in 10 municipalities.

On the other hand, 115 girls were trained in STEM subjects as part of the She Is Astronaut program, in partnership with the She Is Foundation. This program seeks to empower and motivate girls so that, through training and development of technical skills, they can break gender stereotypes and inspire other girls to generate a change of mentality towards equality and appreciation of education. Furthermore, 15 girls had the opportunity to participate in an immersion week at the Nasa Space Center in Houston (USA).[1]

 

Public and community infrastructure ('Ecopetrol Construye' - Ecopetrol Builds)

Infrastructure is a basic condition for improving competitiveness, increasing productivity, generating more and better jobs, achieving higher levels of social wellbeing and reducing differences between regions; therefore, investment in this area seeks to improve land intercommunication conditions to facilitate commercial exchange, reduce travel times and transportation costs; moreover, it seeks to create spaces for coexistence, participation, education, sports, and recreation.

  • Road Infrastructure

Ecopetrol has set the goal of reaching 958 km of intervened roads in 2024. As of 2023, 906.41 km have been intervened, i.e. 95% of the goal set, of which 197.93 km correspond to projects completed in 2023, which benefit more than 95,708 people, contributing to dynamism of the regions, access to better land mobility conditions, and generation of employment, mostly local.

These projects include direct investments such as the reconfiguration of 57.66 km of tertiary roads in the village of El Morro in Yopal (Casanare) with 3,676 beneficiaries, maintenance of 19.38 km of tertiary roads in Cubará (Boyacá) and Toledo (Norte de Santander), with 27,531 beneficiaries, maintenance of 5.20 km of the tertiary road network in San Vicente de Chucurí (Santander), with 290 beneficiaries, among others.

It is important for Ecopetrol to promote transformation towards the circular economy, in which the project for improvement, conditioning, and execution of works at the Ricaurte Station of the Transmilenio Mass Transportation System of Bogotá stands out, with the implementation of plastic recycling technologies for use in infrastructure, which participated in the 'Lazos de Sostenibilidad' (Sustainability Links) awards, obtaining the first prize in the sustainable services category.

Additionally, the progress and final results of the agreement between Ecopetrol and the Industrial de Santander University - UIS, focused on the research project "use of the technology called Bituminous Binding Material – MBL (for its acronym in Spanish) for the improvement of the low traffic road network", through the demonstration in a relevant environment and real setting, using a test train to bring it up to Technology Readiness Levels - TRL 4 to 6. In this phase, it was possible to verify that the physical-chemical and mechanical characteristics of the oily waste product meet the technical and environmental requirements for its use, enabling moving to the next stages of the research process.

Furthermore, it is worth to highlight the signing of the cooperation agreement for intervention of 43 km on the road to the Rubiales rural district, in Puerto Gaitán (Meta), a partnership that was consolidated with the National Road Institute - INVIAS (for its acronym in Spanish), the Meta Governor's Office, the Meta Infrastructure Agency, plus operators in the area, such as Frontera Energy, Tecpetrol, CEPSA, HOCOL.

 

  • Community interest public infrastructure

In 2023, the construction of 13 new infrastructures, and intervention to enhance 21 structures were completed, benefiting 276,903 inhabitants of Ecopetrol's areas of influence.

Support to education must be highlighted through the construction of 9 institutions, and improvement of another 12 educational infrastructures, which benefited 3,071 students; these projects include: improvement of 6 rural educational institutions in Rionegro (Santander), which benefited 182 students; improvement of the Kennedy School and the Gibraltar School in Ubalá (Cundinamarca), with 173 students benefited; the conditioning of the rural agricultural educational institution in the village of Mingueo in Dibulla (La Guajira), which benefited 1,058 students; improvement of 2 educational centers in Cúcuta (Norte de Santander), with 24 students benefited, and the construction of new classrooms in the Henry Daniels school in Castilla La Nueva (Meta), benefiting 310 students.

In addition, support for the children's community and women heads of household through an agreement with the Abu Dhabi Fund for Development and the Colombian Presidential Agency for International Cooperation - APC-Colombia (for its acronym in Spanish), with whom the construction of 8 Child Development Centers - CDI (for its acronym in Spanish) was achieved in Condoto and Acandí (Chocó), Curillo (Caquetá), Tibú and Abrego (Norte de Santander), Palmira (Valle del Cauca), Mitú (Vaupés) and Yopal (Casanare), benefiting 835 early childhood students.

Likewise, the promotion of healthy lifestyles and sports practice is highlighted through intervention projects in parks and sports facilities, including the construction of a playground and bio-healthy area in the rural district of Alta Floresta in San Miguel (Putumayo) with 116 beneficiaries, the construction of a roof and bleachers in the rural district of Cuatro Bocas in San Martín (Cesar) with 541 beneficiaries, the construction of a covered sports complex in the rural district of Peñas Blancas in Neiva (Huila) with 550 beneficiaries and the improvement of the sports complex in the rural district of San Francisco, village of Guacirco, in Neiva (Huila) with 600 beneficiaries.

Lastly, with the aim of strengthening the capacity of local authorities in the formulation and structuring of projects, five feasibility studies and designs were delivered to leverage investments as follows: improvement of 6 km of the tertiary road network in Tauramena (Casanare), improvement of 22.7 km of tertiary roads in Tame (Arauca), construction of a community hall in the rural district of Tisquirama in San Martín (Cesar), construction of a roof for a multi-purpose court in the rural district of La Unión in Acacías (Meta), and construction of a sports center in the rural district of Caño Grande in Castilla La Nueva (Meta).

 

Strategic option: Access to public utilities

This line seeks to improve access and coverage in basic provision of essential public utility services for communities in the areas of influence to thus raise levels of quality of life and close existing gaps related to unsatisfied basic needs.

Ecopetrol Agua y Vida (Ecopetrol Water and Life) - Potable water and basic sanitation

Ecopetrol has proposed to benefit 1,329,704 people by 2024 with access to potable water and basic sanitation. As of 2023, 813,129 people have been benefited, which is equivalent to 61% of the goal, of which 15,019 benefited in 2023. It is to be noted that, in this period, the execution of projects that contribute to close the gap related to potable water access in rural areas was completed, including the construction of the Altos de Pompeya Potable Water Treatment Plant – PWTP in a rural area in Villavicencio (Meta), which benefited 1,329 people.

Similarly, seven projects are underway, which will benefit more than 660,000 people; these include, without limitation, subprojects 2 and 3 of the metropolitan aqueduct of Cúcuta, which will improve access to potable water in Villa del Rosario and Los Patios (Norte de Santander), the replacement of distribution networks of the urban aqueduct of Villa del Rosario (Norte de Santander), which in 2023 benefited 2,020 people; the construction of the Wastewater Treatment Plant - WWTP San Silvestre; and the sludge treatment system of the urban aqueduct in Barrancabermeja (Santander); the expansion and optimization of the urban Potable Water Treatment Plant - PWTP in Guamal (Meta), which in 2023 benefited 11,670 people; the construction of 1 production center and 6 public stockpiles in the rural area of Manaure (La Guajira); and the construction of the Altamira Potable Water Treatment Plant - PWTP in Puerto Lopez (Meta).

On the other hand, with the aim of strengthening the capacity of territorial entities in the formulation and structuring of projects through the provision of technical assistance for studies and designs, Ecopetrol completed 4 studies and designs of aqueduct systems to benefit nearly 3,993 people:

  • Studies and designs for the construction of the supply network of the Sabanas del Rosario rural district in Castilla La Nueva (Meta).
  • Studies and designs for the construction of the aqueduct system of Centro Poblado of the Arizona rural district in Puerto Caicedo (Putumayo).
  • Studies and designs of the new adduction line of the inter-rural districts aqueduct of Tibú (Norte de Santander).
  • Prefeasibility studies and designs for the construction of the aqueduct system of the La Esmeralda rural district in Acacías (Meta).

Ecopetrol Conecta (Ecopetrol Connects) - Energy and gas

This line of investment contributes to close gaps in access to public energy and gas services, in order to reduce energy poverty and promote inclusive growth in the regions where the company operates. Currently, 1.6 million Colombians cook with firewood; thus, the Ecopetrol Group has set a goal of connecting 300,000 new households to gas service by 2040 and contributing to closing gaps by 2.11%.

Ecopetrol has proposed to connect 34,448 households to gas networks by 2024. Up to 2023, 32,576 households have been connected to gas service, i.e. 95% of the goal, of which 14,202 households were connected in 2023 in Barranquilla (Atlántico), San Vicente de Chucurí (Santander), Aguazul (Casanare), Puerto Rondón, Fortul, Saravena, Arauquita and Cravo Norte (Arauca), Guamal and Villavicencio (Meta) and La Plata, Garzón and Gigante (Huila).

Further, execution of 12 projects to increase gas service coverage are underway. Additionally, two new agreements were signed and started to be performed with the following territorial entities, to massify the gas service. 1) the department of Atlántico, which will benefit 4,000 households in 13 municipalities of the department, and 2) the municipality of Saravena, which will benefit 1,800 households. In addition, the first contracts were entered into for construction of electric power networks in the village of El Morro, Yopal (Casanare): 1) with the department of Casanare, which will benefit 111 users in five rural districts, and 2) with the municipality of Yopal, which will connect 175 users in nine rural districts.

Through the public works for taxes mechanism, the execution of projects continues for the implementation of photovoltaic solar solutions for 766 households to increase coverage of the electric power service in the rural area of ​​the Valle del Guamuez, San Miguel, and Orito municipalities (Putumayo), for which the Territorial Renovation Agency – ART (for its acronym in Spanish) issued Resolutions 546, 550 and 551 of August 23, 2022, approving their application on Ecopetrol's income tax.

Finally, two projects to implement the mechanism set out in Decree 1704 of 2021 were presented and followed up with the Ministry of Mines and Energy: "Expansion of fuel gas networks and connection rights for households of stratum 1 and 2 in the Canelo, Diamante, Jazmín and Almendro rural districts in Sabana de Torres (Santander)" and "Construction and expansion of natural gas piping, distribution and home connection networks for the Labrancitas rural district in Paz de Ariporo (Casanare)".

With these projects, we reaffirm our commitment to closing gaps related to access to essential public services, generating conditions for access to energy and the universalization of the service, positioning gas as the energy that drives a fair energy transition.

Health ('Ecopetrol Salud' - Ecopetrol Health)

Health investments are meant for actions that improve the quality of health care services and promote closing gaps in this area. Ecopetrol undertook the following projects in 2023:

  • Operation of the mobile health unit in the Middle Magdalena region: aimed at providing health care services closer to the vulnerable population, hand in hand with the oil industry trade union - Unión Sindical Obrera de la Industria del Petróleo – USO (for its acronym in Spanish), the mobile health unit was implemented to benefit 22,000 patients. It provides general medicine services, taking samples, promotion and prevention talks in rural districts of Cantagallo (Bolívar), Barrancabermeja, Puerto Wilches, Sabana de Torres, Yondó, San Vicente de Chucurí (Santander), and Rionegro (Antioquia).
  • Health workshops: an agreement is underway with the Rotary Club to offer workshops for cleft lip correction in Barrancabermeja (Santander). In May, the year's interventions were brought forward, treating 100 patients with cleft lip or burns. Health workshops were held in the Catatumbo Region with the support of the Operación Sonrisa Foundation (Smile Operation Foundation), which is benefiting 800 children and mothers of the Uwa indigenous community.

Public works for taxes

Public works for taxes is a mechanism created by the Colombian Government in 2017, which allows companies to pay up to 50% of their income and complementary tax through the direct execution of social impact projects in the Most Affected Areas by the Armed Conflict – ZOMAC (for its acronym in Spanish) which purpose is the construction, improvement, optimization, or expansion of infrastructure and the required endowment for the supply of road infrastructure, potable water and sewerage, energy, education, and public health services, among other sectors.

In 2023, the Ecopetrol Group continued to lead the implementation of the mechanism in Colombia, obtaining the largest participation in the country, with 32 new projects assigned in this term by the Territorial Renovation Agency – ART (for its acronym in Spanish) for $201,060 million pesos, which will benefit over 529,000 Colombians. With these projects, the Ecopetrol Group, since the creation of the program, has allocated a total of 91 projects, for a value of $758,668 million pesos, that is, 36% of the total projects allocated in the country.

During 2023, the Ecopetrol Group completed 9 projects for an amount of $79,050 million pesos, benefiting over 100,549 inhabitants of the country in 20 municipalities in 6 departments. The works include the improvement of 6.91 km of roads in San Martín (Meta) and Paz de Ariporo (Casanare), the construction of 3 vehicular bridges in Tibú (Norte de Santander), plus improvement of infrastructure and delivery of equipment to 83 educational centers in the departments of Arauca, Putumayo, Bolívar, and Meta.

[1] Science, Technology, Engineering and Mathematics

 

The Ecopetrol Group has an Enabling Plan to guide physical security actions with a focus on Human Rights - HHRR, complying with the Strategy for Integrated Land Management with the core being the cultural principle of "Life First".

The pillars supporting the management of the plan are:

    • Management in the protection of people: define and implement a physical security model focused on protecting the lives of workers during the performance of their duties.
    • Management in the protection of the Nation's critical and strategic infrastructure: define and implement cost-effective solutions and delay barriers to have self-protected assets and thus prevent and/or reduce the setting's security impact on people and the operation. It is worth noting that the management in the protection of the Nation's critical and strategic infrastructure is fundamental, as these assets secure the country's supply, the provision of essential public services for all Colombians, being a fundamental pillar of energy security.
    • Management for the viability of the operation: To enable the execution of the company's operations, projects, and new ventures to support the energy transition, the well-being of communities and the provision of an essential public service to all Colombians.

These pillars are managed through the analysis of security risks and identification of impacts on human rights, in accordance with the international standard of Voluntary Principles on Human Rights, through the definition of a methodological standard.

Likewise, the physical security and human rights risk analyses are the basis and roadmap for the implementation of action lines enabling management of the identified risks.

Included below are the action lines for security and Human Rights risk management:

    • Self-care and self-protection culture.
    • Implementation of voluntary principles standards.
    • Transparent relationships and security alliances.
    • Technological solutions for physical security.
    • Operational assurance and control.
    • Impact reduction model for third party events.
    • Crisis and Business Continuity Management System.

Image. Physical Security Management Enabling Plan Focused on Human Rights

Source: ​Vice-Presidency of Sustainable Territorial Development, Physical Security Management

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