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Human Rights in the Supply Chain

Apr 13, 2021

Our commitment in the supply chain

Through its internal labor regulations in contracted activities, Ecopetrol indicates the labor standards that all suppliers must abide by with their workers when performing activities for the company.

Through our policy, we expressly state our commitment to respect all Human Rights. The following elements are particularly relevant in the supply chain:

  • Decent, favorable and adequate working conditions.
  • Freedom of unionization and collective bargaining.
  • Equality in employment and occupation.
  • The abolition of any form of child labor.

We work in partnership with our suppliers

Our Operational Executive Vice President Alberto Consuegra opened the First Workshop on Human Rights Co-Creation, to talk with our suppliers and contract administrators about good business practices in Human Rights in our supply chain, as well as about risks, challenges and opportunities that companies have in this area.

Similarly, Ecopetrol holds Supplier Summits to highlight the importance of managing matters such as respect for the right to unionize and collective bargaining, among others.

 

Suppliers’ evaluation

Ecopetrol has defined a methodology and criteria to evaluate the effectiveness and efficiency of the performance of its contractors, seeking to have contractual relationships framed in compliance with national legislation and good practices in matters of sustainability and Human Rights.

We evaluate the performance of our contractors based on the following criteria:

  1. Operational Efficiency
  2. Contract deadlines
  3. Administrative Aspects
  4. HSE Aspects
  5. Environmental Management.

In order to evaluate the performance of our suppliers on relevant human rights issues, three of the aforementioned criteria address issues related to labor conditions, environmental management and community relations.

  1. Administrative Aspects: In contracts that involve labor exclusively for the same and / or supply of goods and services, or it is required to include the sub-criterion of delivery of documents, this evaluation criterion is mandatory.

Two types of indicators are included in this criterion: Compliance with Legal and Contractual Labor and Social Security Obligations.

If there is no breach

100%

If there is one (1) breach classified as High

80%

If there is one (1) breach classified as Very High or two (2) breaches classified as High

70%

If there are two (2) breaches classified as Very High or three (3) to four (4) breaches classified as High

50%

Three (3) or more breaches classified as Very High or five (5) or more breaches classified as High

0%

 

  1. HSE aspects: Contracts executed in Ecopetrol's facilities and under its operational control are evaluated. In M, H and VH risk contracts that exceed six (6) months of duration, it is mandatory to perform at least one annual audit.
     

Total Recordable Incidents Frequency (TRIF) (*).

Total Recordable Incidents Frequency (TRIF) (*).

The planner must define the limit during contract planning:

 

  • It can take as a limit for this indicator, the Frequency Index established for each Vice Presidency, Management or Department for the period in which the planning is performed. In case of affecting more than one Vice Presidency, Management or Department, the rate must correspond to the lowest value.

 

  • A different limit can be established, provided that it is below the Frequency Rates established for each Vice Presidency, Management or Department.  

 

If the TRIF < Defined limit, it will obtain 100% of the points.

 

 If the TRIF ≥ Defined limit, it will obtain 0 points.

 

 

Environmental Incidents for operational causes (EI)
 

Environmental Incidents for operational causes (EI)

(When applicable)

The maximum limit it every case in which this aspect applies will be Zero (0)

 

EI = 0 will obtain 100% of the points.

 

IA > 0 will obtain 0 points.

 

  1. Surrounding Managements:

The following aspects are considered within this criterion: i) Environmental incidents attributable to contractors, ii) Complaints and claims affecting the environment, and/or iii) Contractor's Environmental Plan for compliance with the Environment Management Strategy.

If there is no claim and/or complaint classified as valid

100%

If there is one (1) claim and/or complaint classified as valid

75%

If there are two (1) claims and/or complaints classified as valid

50%

If there are four (4) claims and/or complaints classified as valid

0%

 

 

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