Within Canacol, the supply chain assumes a foundational role in the realization of our sustainability objectives. We firmly uphold the belief that our value chain stands as a significant conduit through which we can drive positive outcomes for Colombia. At each stage of engagement with our goods and services suppliers, we conscientiously incorporate holistic environmental, social, and corporate governance (ESG) strategies. These strategic integrations are designed to implement and uphold the sustainability standards prevalent in the oil and gas sector. This underscores our unwavering commitment to the practice of responsible and ethical principles.
To maintain the highest standards of transparency across our value chain, we have instituted a Code of Conduct and Ethics for Suppliers of goods and services. This Code is structured around a definitive set of guiding principles, encompassing:
For further information, please refer to the Code of Conduct and Ethics for Suppliers of Goods and Services.
Canacol promotes and implements ESG with its suppliers of goods and services based on the company's three strategic ESG pillars:
These programs are overseen by the ESG Committee of the Board of Directors, and their execution is managed by the Company's Executive team.
The ESG programs for suppliers of goods and services include the following actions:
These actions allow Canacol to identify and promote good sustainability practices of its suppliers of goods and services, ensuring compliance with standards, good performance and long-term relationships in our supply chain.
To learn more about our ESG practices for suppliers of goods and services, consult the 2022 ESG Report.
When acquiring goods and services from various suppliers, Canacol recognizes the need to establish an effective system for supplier management. This system focuses on assessing the capabilities of goods and services suppliers to meet the increasing demand for and quality of products, while still achieve objectives and fostering trusted relationships between parties.
Canacol establishes comprehensive criteria for the equitable and transparent selection, evaluation, and auditing of goods and services suppliers. These standards encompass the supplier’s capacity to support commercial operations while integrating sustainability considerations. These encompass facets such as business integrity, social responsibility, human rights, health and safety, and environmental management, all aligned with the framework outlined in the Code of Conduct and Ethics for Suppliers of Goods and Services.
Canacol's supply chain strategy is aligned with the most stringent ESG standards. Our supplier assessment and selection protocols adhere to the mandates outlined within the ISO 14001 standard, in addition to conforming to Canacol’s own meticulously crafted Environmental Quality Plan. Suppliers within our network are obliged to provide explicit declarations concerning their strategies aimed at mitigating potential environmental risks and societal impacts. These declarations encompass a comprehensive spectrum of contingency plans, structured programs, defined procedures, and requisite certifications.
Canacol organizes weekly Service Quality Management (SQM) meetings with its suppliers. The aim of these meetings is to effectively communicate business objectives, policies, orientations, and methodologies. Additionally, they provide a platform for valuable knowledge exchange and constructive dialogue between our suppliers and the Company.
Canacol values transparent and collaborative relationships with its goods and services suppliers. Our commitment to fostering trust within our supply chain is underpinned by a rigorous selection process for bidders, scrutinizing their alignment with our standards and prerequisites. Our evaluation framework for suppliers encompasses a comprehensive assessment of technical, commercial, health and safety, environmental, quality, and governance facets. Within this context, our evaluation processes for pivotal strategic suppliers of goods and services encompass a range of initiatives, including but not limited to:
Canacol's management structure for goods and services suppliers has been designed to ensure a rigorous risk management approach aimed at preempting and mitigating potential business disruptions. In pursuit of this objective, Canacol conducts evaluations of its principal supplier cohorts. These evaluations culminate in a classification process that hinges on two critical factors: ESG considerations and overall business relevance.
The assessment of suppliers’ ESG risk is contingent upon sector-specific risks. The evaluation of ESG aspects encompasses a spectrum of topics, such as project timelines, quality standards, air quality preservation, greenhouse gas emissions, water usage and disposal, waste management, energy consumption, anti-corruption efforts, fair competition, labor relations, human rights, and health and safety protocols, among others.
The selection of our suppliers of goods and services is underpinned by the correlation between their operational scope and our criticality map. We categorize our operations into four levels of criticality: strategic, tactical, transactional, and routine.
For further information, please refer to the 2022 ESG Report.
Canacol has established comprehensive supplier evaluation and audit programs aimed at risk management, the formulation of mitigation strategies, and the evaluation of performance guided by jointly developed mitigation plans. These evaluations encompass considerations of production and delivery quality, quantity, and safety, aligned with Canacol’s fundamental requisites and the minimum mandates of labor and environmental regulations. Furthermore, these assessments encompass adherence to recognized standards such as ISO 9001, ISO 14001, and ISO 45001, tailored to the specific nature of the goods or services to be contracted, in addition to strict compliance with our anti-corruption policy.
Canacol has formulated an audit and evaluation plan specifically tailored for strategic suppliers operating within high-risk domains. These domains encompass activities with potential for significant impact on the respective suppliers and neighboring communities, consequently carrying substantial implications for the client in terms of business operations and corporate reputation. The clear objective outlined within this plan is to conduct audits and evaluations for 100% of the strategic suppliers associated with the high-risk operational category.
To assess suppliers’ sustainability performance, the following types of evaluations are conducted:
For further information, please refer to the 2022 ESG Report.