Green Procurement
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Green Procurement

Last updated Nov 23, 2014

The Procurement and Contracting Unit (PCN) of Ecopetrol´s Shared Services Department is responsible for the acquisition of goods and services nationally, regulated by Ecopetrol´s contracting manual which is available publicly on the link.

The PCN has adopted a Supply Methodology as a systematic model for the strategic procurement of goods and services required by the organization. Their process begins with the planning of these, which identifies those that are of high impact in the organization and entail a high level of expenditure.

Additionally, there are market-referencing methodologies, to thus be able to define the best procurement strategy that leads to the best deal, and it is then implemented and monitored during execution.

Although Ecopetrol does not quantify the weight and volume of materials used due to range of measurements that this implies, the total amount purchased is quantified as well as the number of processes, purchases and contracts through which their supply is ensured. Thus, business was conducted with 1,339 contractors for a value of $12,406 million for direct charge and $1,399 million for specific purpose, through 14,870 processes: 8,172 purchases and 6,698 contracts by means of which 82,466 materials were acquired. This represents 2% less than in 2010 when 84,350 materials were acquired within 13,655 processes, 9,663 purchases and 3,992 contracts, which are set out in the following graph:

ECOPETROL´s Green Procurement Strategy (hereinafter ECGreen) incorporates the environmental impact of the supply chain within the sustainability vision and business strategy of the company, and aims to reduce it.
This strategy was conceptualized based on the European Union´s Green Public Procurement (GPP), introducing some differentiated elements in response to Ecopetrol´s strategic framework:
a) It is intended as an element that, while contributing to sustainable development, impacts on the company´s entry and participation in new markets and its competitiveness within them.
This implies constantly updating in relation to international trends in terms of regulation, best practices, materials and environmental technologies in production processes, as well risk mitigation due to previous experiences.
b) Includes analysis of the environmental, economic and social impacts of the life cycle of goods and services, within the criteria to be considered in the definition of the most suitable good or service within the company´s supply strategy.
c) Incorporates a Supplier Environmental Training Program, in order to gradually raise the level of requirements placed on them in terms of supplies/processes/environmental traceability, in order to reduce the gap in relation to international requirements and standards, facilitating their entry and participation in external markets and leveraging the State´s efforts in terms of competitiveness. 
Honors and Awards

In 2011, ECOPETROL´s ECGreen was awarded the Green Vendor Rating Award, awarded by the Technical and Scientific Committee of the International Forum Buy Green1, which enables the company to use the following logo in its corporate communications: 

The award aims to publicly recognize efforts and best practices in Green Procurement and Green Supply Chain in Italy and abroad. It was awarded to ECOPETROL because of the effectiveness in implementing its green procurement strategy.

1. The International Forum Buy Green is organized annually by the local Agenda 21, Adescoop (Agency for the Social Economy of Italy) and other public and private entities. The Italian Ministry of Environment participates in the Scientific and Technical Committee.