Through an environmental responsible Supply Chain Management, Ecopetrol seeks to promote the efficient use of resources by extending the goods and services life cycle required and reduce the environmental impact of its operations. Thus, the supply chain process has developed the following mechanisms:
ENVIRONMENTAL CRITERIA AS SUPPLIERS´ SELECTION FACTORS: Establishes and includes environmental criteria as a factor for supplier selection into procurement strategies to minimize the impact generated by the acquisition of goods and services.
GREEN CLAUSES: Ensures compliance with environmental obligations during contracts´ execution.
USE OF NON-REQUIRED ASSETS: Maximizes the valuation of assets not required by Ecopetrol, through ensuring the compliance of Circular Economy Model Principles.
RESALE AGREEMENTS: Reuse of goods not required by Ecopetrol, through resale agreements or " buy backs". During the supply planning, the repurchase of acquired goods can be ensured, guaranteeing the proper closure of material´s life cycle.
MATERIALS SHOWCASE: Prolongs the use of materials, guaranteeing its correct use and avoiding costs for new materials purchase.
As well, the Supply Chain Process has deployed plans and policies to ensure the sustainable management of its suppliers.
FROM COMMITMENT TO REALITY:
- Establishment of environmental criteria for 55 goods and services which represents 57% of annual spent.
- Ecopetrol improved the quality of its emissions inventory through the information compilation of 234 suppliers to integrate it in the greenhouse gas (GHG) emissions estimations. These suppliers represent 40% of spent and 45% of total emissions from the supply chain and services function (373,559 tCO2e). Additionally, 104 suppliers, which represented 21% of spent, disclose their information regarding the decarbonisation plans and their GHG emission reduction goals during the execution of contracts with Ecopetrol.
- Development of the decarbonisation clauses taking into account the different markets’ maturity levels in terms of decarbonisation, so 3 types of clauses were designed:
- Mature markets: The selection process seeks for the highest GHG emission reduction goal.
- Hybrid markets: Mature and immature suppliers in terms of decarbonisation, these clauses encourage suppliers to estimate their emissions and formulate a plan to reduce their emissions during the contract execution.
- Immature markets: These clauses encourage suppliers to identify their emission sources and the actions they can take to reduce GHG emissions.
- Reduction of 76,829 tCO2e, which corresponds to 9.2% of the total emissions of the GHG inventory for the supply chain and services function; This reduction is 863% greater than what was achieved during 2021. 56% of the emissions reduced corresponded to mitigation levers such as energy efficiency, incorporation of low-emission vehicles in the operation and circular initiatives. The remaining 44% corresponded to offsetting emissions through the acquisition of carbon credits by suppliers, mainly in projects associated with Natural Climate Solutions that provide social co-benefits for the country.
- 34,176,254 kg of waste were sold, of which 94% corresponded to ferrous waste that was fully used in the steel industry, increasing by 5% compared to 2021.
- The sale of $52.4 milliards COP of non-required goods, increasing by 68% compared to 2021.
- 98% use of ferrous waste managed by circular economy was achieved.
- The first supply chain circularity model was launched, which allowed the transformation of 173,462 kg of ferrous waste in 348 racks, 8 cantilever and 100 cleaning points, with a 100% circularity indicator and generating avoided costs of $401 million COP.
- $10.8 milliards COP of costs avoided due to dismantling (48%), Associated sales (38%) and materials showcase (14%).
- Income of $3 milliards COP for repurchasing of turbo machinery equipment to manufacturers, extending its useful life.
- Use of 5,771 tons of waste from the categories of administrative services which corresponds to 76.5% of the total waste generated in the operation.
- About 5.7 tons of waste were used, corresponding to 76.5% of the total waste generated in the food services, maintenance and non-industrial civil works, cleaning, accommodation, cleaning, and cafeteria, thanks to initiatives such as the use of demolition and construction waste in fills and embankments, recycling, composting, among others.
- The guidelines for the use of Construction and Demolition Waste were determined, going from a use level of 4% in 2021 to 56% at the end of 2022 in works and maintenance at non-residential facilities.
- In organic waste, a 92% use was achieved in food, cleaning, lodging, and cleaning services, through practices such as composting.
- Commercial agreements were formalized for the implementation of circular initiatives in fireproof equipment, sheets, scrap metal, plastics, valves, and wood, demonstrating triple impact benefits, since 100 regional jobs were achieved, 3,000 tCO2e and 27,000 m3 of water were reduced, and $11.2 milliards COP was obtained.
- Ecopetrol received special recognition as Chemical Leasing Frontrunners at the Global Chemical Leasing Award 21 from the United Nations Industrial Development Organization -UNIDO-, thanks to the long-term commitment to the business model for the management of sustainable chemicals, which consists of going from the purchase of chemical products to the payment for their service, allowing the efficient use of chemical products , minimizing waste, prolonging the life cycle of the chemical product, and in general the efficient use of resources.
An 8.8% decrease in water withdrawal was achieved in non-industrial facilities intervened, thanks to good water use practices. By 2022, 179 water meters have been installed in non-industrial facilities, which have allowed continuous monitoring of water consumption and compliance with goals by type of facility.
3.267 suppliers received awareness-raising communications around Ecopetrol's water neutrality strategy.
- 57% water use reduction in drilling operations through water recirculation initiatives.
- 60% fuel consumption reduction required for workover equipment due to the implementation of LessFuel technology.
- 2.313 TCO2 reduction through new technologies in electric submersible pumps.
- 84% native land use reduction.
- Use of soundproof equipment reducing impact on the environment.
- Adequate disposal through “Blue Points Program” for expired medications and post-consumer products, collecting 5 tons of medication waste.
- 100% use of compostable and biodegradable bags, reducing the use of 19 million plastic bags, which is equivalent to 29 tons of plastic.
- Implementation of reusable fridges, reducing the use of approximately 1.500 styrofoam refrigerators.
Learn more about these programs below:
Environmental program for the supply chain and services