Prosperity is an essential component of our SPEED Value System and goes beyond benefit to our business, generating direct and indirect value for our neighbors and to the economies of the territories and regions we operate in.
(103-1) The development of our operations requires goods and services with an important local component delivered by suppliers or contractors, who we consider as our strategic partners. As these partners are fundamental in GeoPark’s development and growth we do not only invite them to participate in commercial processes for the execution of our operational projects, and we also implement programs to promote their growth and ongoing improvement.
(103-2) Our management of suppliers and contractors is defined in our Corporate Supply Commitment, which establishes the rules, standards, parameters and processes for contracting goods and services. Through this commitment, we have transparent, efficient and effective procedures to contract with others competitively.
We have initiatives to strengthen the competitiveness of the value chain and develop the best possible performance standards from suppliers and contractors. Similarly, we promote the creation of decent employment opportunities, the payment of fair wages, the development of training and training processes, and programs that promote the growth of these important commercial partners and positively impact the economy of the territories we operate in.
At GeoPark we know that contracting goods and services creates high expectations in the areas we have activities in, so we focus on promoting the selection of local suppliers and contractors as part of our commitment to invigorate regional economies, boost competitiveness and promote sustainable development.
(103-3, 102-9, 204-1) IPIECA: SOC-14 and SOC-15 In 2020 we bought goods and services from 1,796 suppliers and contractors for approximately $274 million. Within this amount, local goods and services totaled some $64 million, of which 55% was in Colombia, 32.4% in Chile, 8% in Argentina, 3.6% in Brazil and 1% in Ecuador. By buying local goods and services in the territories we operate in, we invigorate economies and support local businesses.
GeoPark suppliers and contractors, 2018 – 2020
*In 2018 GeoPark did not have any activities in Ecuador.
(204-1) IPIECA: SOC-14 and SOC-15 In 2020 the acquisition of goods and services decreased to $274 million from $355.6 million in 2019, due largely to reduced operations as a consequence of the pandemic and the fall in oil prices.
(102-9) IPIECA: SOC-14 and SOC-15 Our commitment to the value chain is based on responsibly managing our suppliers and contractors, based on respect for the principles of decent, dignified work, a genuine interest in contributing to the growth and strengthening of local suppliers and contractors, and creating indirect benefits to the economies of the regions and countries we operate in.
In our operations in Colombia we created 2,413 local job opportunities in 2020 for workers from communities neighboring the Llanos 34 and
Juntos Sumamos is a socio-labor dialogue strategy that brings together representatives of contractor companies, local authorities, labor and social leaders to develop action plans that address the opinions and concerns of stakeholders regarding job development in our operations.
The strategy promotes agreements and partnerships to promote local employability, connecting different organizations and companies. More local labor has been hired because of these agreements and we have helped to standardize profiles of qualified labor, adjust working hours, and bring about greater equality and salary improvements. We also involved the Public Employment Service to a greater degree in the territories and made our Local Contracting Guide as a tool to standardize labor practices in accordance with the highest standards, such as those defined by the ILO.
In 2020 GeoPark’s labor management work aimed at ensuring that all contractors comply with their legal and labor obligations to guarantee their employees the right to decent and dignified work.
In Colombia, this program allowed us to follow up with and support more than 100 local GeoPark contractors, permanently monitoring their performance. We held 112 follow-up meetings with our local suppliers in 2020 and recorded 85% compliance in their labor obligations. When we identify opportunities for improvement, we always provide guidance to define the necessary actions and thus promote the growth of local employers.
A partnership between GeoPark and the Colombian Institute of Technical Standards and Certification (Icontec) led to five of the Company’s most significant contractors being awarded the Icontec Seal of Good Labor Practices. The certification recognizes high labor management standards in areas including hiring, salary, payments of social benefits, social security, and labor regulations.
Elsewhere, to extend best labor practices and contribute to a safe economic recovery we worked with nine of our local suppliers in 2020 on their certification process for the Bureau Veritas Safeguard Label, which GeoPark has held since June 2020.