Investment in integrated land management

The sustainable territorial development portfolio makes the implementation of the Strategy for Integrated Land Management viable, with investments in its three mission components. The investment executed in 2023, for each of these components, is detailed as follows:

Table. Investments by mission component Ecopetrol 2023

(Millions of pesos)

Source: Vice-Presidency of Sustainable Territorial Development

Note: In addition, more than $450 million pesos in sponsorship (commercial initiatives) were executed for fiscal year 2023.

Execution of social and relationship investment

In 2023, social and relationship investment projects and initiatives (strategic/voluntary and mandatory) were executed for $366,233 million pesos (see graph). There is a 20% increase in the amount executed as compared with the previous period, due to the increase in the budget allocated for fulfillment of commitments and investment plans for Sustainable Territorial Development in the territories.

Graph. Execution of social and relationship investment Ecopetrol 2017 to 2023
(Millions of pesos)

Source: Vice-Presidency of Sustainable Territorial Development

The strategic (voluntary) and mandatory investment executed during 2023 is classified within the following investment lines and other investments (see chart), generating impact on different dimensions of local development in the territories (see table below).

Graph. Social and relationship investment Ecopetrol 2023

(Millions of pesos)

Source: Vice-Presidency of Sustainable Territorial Development

Table. Ecopetrol 2023 results by social and relationship investment line *

Source: Vice-Presidency of Sustainable Territorial Development

* Certified Goals 2023

Ecopetrol’s strategic investment is crafted through the identification of opportunities to contribute to local development within the framework of defined social investment guidelines. Projects and initiatives are prioritized through consultation with stakeholders, including national, departmental, and local governments, as well as civil society and communities. These projects are meticulously formulated and structured as integral components of the company’s comprehensive territorial management plans, ensuring the viability of operations.

Additionally, mandatory investments encompass those required by Ecopetrol to fulfill social obligations stipulated in contracts with the National Hydrocarbons Agency – ANH (for its acronym in Spanish) and mandated by environmental authorities as part of permit and licensing processes. These investments also include obligations stemming from prior consultation processes, undertaken not only for legal compliance but also as opportunities to enhance the socioeconomic conditions of the region.

Compared to 2023, there was a significant increase in the Public and Community Infrastructure investment line with an additional investment of more than $42,600 million pesos, where the project Construction of the U’WA Intercultural Thought Center, Cubará (Boyacá) stands out with an execution of $12,367 million pesos for the Piedemonte region. In the Inclusive Rural Development investment line, there was an increase with an additional investment of more than $13,200 million pesos, of which the Food Supply Network of Meta – FAO Phase 2 project stands out, with an execution of $8,037 million pesos for the Orinoco and Eastern regions.

In terms of regional distribution, investments in the Central region standout, totaling over $100,000 million pesos. This was primarily allocated to the construction and adaptation of the sedimentation, disinfection, removal, and sludge treatment process systems for the Potable Water Treatment Plant – PWTP of the urban aqueduct in the district of Barrancabermeja (Santander), with an execution of $22,294 million pesos. Moreover, the Piedemonte region saw significant investment, surpassing $75,700 million pesos, predominantly allocated to the Yopal (Casanare) tertiary road maintenance project, with an execution of $6,896 million pesos. Similarly, the Orinoquía region witnessed substantial investment, exceeding $60,500 million pesos. This was mainly directed towards projects such as the Improvement of the Santa Bárbara rural district road in Guamal (Meta), with an execution of $6,761 million pesos, and the Improvement of the Malocas Park of the Llanera Culture in Villavicencio (Meta), with an execution of $6,500 million pesos. (See graph for visual representation).

Graph. Regional view of social and relationships investment Ecopetrol 2023

(Millions of pesos)

Source: Vice-Presidency of Sustainable Territorial Development1

In 2023, Ecopetrol allocated $27,310 million pesos through the public works for taxes mechanism, primarily towards investment lines in Education, Sports, Health, and Public and Community Infrastructure. Notably, significant investments were made in projects such as the Endowment for various school environments in official school residences across 13 non-certified municipalities in the department of Meta, with an execution of $8,586 million pesos. Additionally, funds were directed towards the Improvement of infrastructure and equipment in educational institutions in the department of Putumayo, totaling $5,189 million pesos. These projects collectively account for 50% of the total expenditure under this mechanism.

Graph. Regional view of social and relationships investment Ecopetrol 2023

(Millions of pesos)

Source: Vice-Presidency of Sustainable Territorial Development

Table. Ecopetrol 2023 results of public works for taxes *

Source: Vice-Presidency of Sustainable Territorial Development

*Certified goals 2023

Programs for the Benefit of Communities 
The investments made through the Programs for the Benefit of Communities - PBC are a direct contribution of the companies of the hydrocarbon sector, through sustainable social investment, derived from the exploration and production contracts and agreements, and technical evaluation, signed with the National Hydrocarbons Agency –ANH (for its acronym in Spanish). 

In compliance with the contractual obligation of the PBC, Ecopetrol formulated social investment projects, agreed with the communities, aligned with the social policies of the Government, and in compliance with the Sustainable Development Goals - SDGs and the goals established for Colombia in the National Council for Economic and Social Policy - CONPES (for its acronym in Spanish) 3918 of March 15, 2018, and the Poverty Measurement Indicators – IMP (for its acronym in Spanish).

In 2023, 30 PBCs with 74 social investment projects were approved and are currently underway, for a value of $29,661, million pesos. Among the approved projects, the following stand out:

• 36% are for strengthening production (Decent work and economic growth of families - SDG 8).
• 32% are for the strengthening of Community Action Boards (Partnerships to achieve the goals - SDG 17).
• 14% are for the improvement of educational institutions (Education with quality - SDG 4).

For the definition of these projects, citizen participation and consultation processes were carried out between the communities and the company, which allowed us to identify needs and prioritize projects, seeking to benefit 14,961 people in the departments of Casanare, Meta, Santander, Cesar, Putumayo, Cundinamarca, Antioquia, and Huila.

In 2023, $10,208 million pesos were executed in Programs for the Benefit of the Community - PBC, aimed at promoting the viability, impact, sustainability, and promotion of social investment with a focus on sustainable development. Ecopetrol coordinates and generates synergies between mandatory social investments such as PBC and strategic investments (voluntary). Thus, it promotes and facilitates the confluence of mechanisms and sources of social investment available together with local and national governments, to enhance the impact of such projects in the communities.

Table. Execution of investments in Programs for the Benefit of the Community by region 2023

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

The main projects being performed in 2023 include improvement and maintenance of the San Isidro de Chichimene educational institution in Acacías (Meta), provision of school kits in the departments of Huila and Putumayo to promote school retention, improvement of multifunctional facilities in Cacayal, Betania and Caño Grande (Meta), construction of a recreational-sports stage in the village of Santa Teresa in Puerto Wilches (Santander) and electrification of rural districts of the Floreña field - Phase II in Yopal (Casanare).