Social
We are focused on investing and working to improve the lives of our employees, contractors and the communities around our operations. SierraCol Energy is committed to social prosperity.
Environment,
Social and Governance
SierraCol Energy is committed to the best ESG performance, creating value for all our stakeholders. Sustainability for SierraCol Energy means operating responsibly and generating economic, social and environmental value in a consistent way.
Our ESG Framework
E : We protect the environment and promote the sustainable usage of natural resources in our business operations. We are committed to achieving our carbon-neutral goals and adapting to climate change.
S : We are focused on investing and working to improve the lives of our employees, contractors and the communities around our operations. SierraCol Energy is committed to social prosperity.
G : We are convinced of the importance of solid governance to create value and we work continuously to improve it. Our governance system provides oversight on what we do, ensuring compliance with legal requirements and stringent international standards.
Environment
Social
Governance
Environment
Environment
We protect the environment and promote the sustainable use of natural resources in our business operations. We are committed to achieving our carbon-neutral goals and adapting to climate change.
SierraCol Energy operations are developed in harmonic coexistence with the social and natural environment
Our environmental and energy transition efforts are based on rigorous work, monitoring, compliance with regulations, and close work with authorities to support a lower carbon business. Responsible water usage and waste management, biodiversity protection, and maximising resources’ value through a circular economy plan, while identifying and managing business risks and opportunities, have been our environmental approach.
OUR ENVIRONMENTAL PILLARS:
Climate
change
Climate change
Taking action towards carbon neutrality
In SierraCol Energy, there is genuine concern about the effects of climate change.
- We strive to quantify, reduce and mitigate our emissions, and are committed to aligning our actions with the Paris Agreement and National Climate Change Policy by articulating efforts to address and manage climate change associated risks.
- We evaluate the climate risk and define plans to adapt our operations, seeking to reduce the vulnerability of our infrastructure and, to the extent possible, to our neighbouring communities.
- We are developing an organizational culture committed to climate change mitigation and adaptation.
Climate change
SierraCol Energy has set ambitious goals related to energy efficiency and transition programmes that include:
- Reduction of carbon emissions by 50% by 2023
- Aspiration to be carbon neutral by 2030
- Reduction of methane and other fugitive emissions
- Routine gas flaring elimination by 2025
- Evaluation and implementation of new low carbon technologies
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Our carbon footprint
performance
GHG Emissions
Thousand metric tons CO2e
GHG: greenhouse gases
COG GHG emissions were included from 2020
Scope 2 emissions were calculated and updated using the latest emission factor published in Resolution 320 2022 issued by the Colombian government’s Mining and Energy Planning Unit (UPME) and the latest version of the API Compendium
Carbon Intensity Trend
kg CO2e / boe
Net emissions and net carbon intensity include 387,920 MWh I-REC certificates redemption for 2022 and La Cira Infantas carbon credits transfers (70,298 tCO2e) for 2021.
Scope 2 emissions were calculated and updated using the latest emission factor published in Resolution 320 2022 issued by the Colombian government’s Mining and Energy Planning Unit (UPME) and the latest version of the API Compendium
Sustainability Frameworks
We align our operations and policies to national and international frameworks.
Achieving excellence is not only about complying with legal requirements; it is essential to implement the highest standards and guidelines to enhance the processes and conduct our business ethically, transparently and efficiently.
Water management
We are committed to a holistic water management process, conducted with high-quality standards that meets all statutory legal requirements. Water is an essential shared resource for communities, local ecosystems and our operations.
We transform more than 2 million barrels of water per day produced from our operations into fresh water that contributes to the stability of the ecosystems, enhancing the water quality and decreasing water stress.
Sustainability Frameworks
We align our operations and policies to national and international frameworks.
Achieving excellence is not only about complying with legal requirements; it is essential to implement the highest standards and guidelines to enhance the processes and conduct our business ethically, transparently and efficiently.
Circular economy
The circular economy allows affordable, reliable, resilient, and sustainable business development over time through the efficient use of natural resources (water, energy, and materials). Responsible waste management is one of the most important lines of action in SierraCol Energy ́s environmental management.
Our circular economy pillars are aligned with the National Circular Economy Strategy (ENEC) and the Ellen McArthur Foundation
“Keeping products and materials in use”
“Plan before starting in order to prevent waste and pollution “
“ Recovery and regeneration of materials”
Sierracol Energy’s enhances efforts for the circularity in its operations
Water
Based on our integrated water strategy pillars: (i) water quality, (ii) water use efficiency, (iii) water access and sanitation for communities, and (iv) research and development. Reducing water consumption and increasing water reutilization and recirculation is a priority. For more information, please visit the SierraCol Energy website under ESG/Water Management.
Materials
In order to reduce consumption of raw materials and be aligned with sustainable development goals, SierraCol Energy promotes reutilization, recycling, and recovery of materials and waste since the acquisition of products until their use ends.
Energy and emissions
Our strategy to reduce carbon footprint focuses on identifying optimal alternatives for energy use and management of both greenhouse gases (GHG) and non-GHG. For more detailed information, please visit the SierraCol Energy website under ESG/Climate Change.
Social
SierraCol Energy develops projects that have a positive impact on the lives of communities located in the surrounding areas by applying responsible business practices. These projects are based on a symbiotic relationship between social and business aspects.
Number of initiatives
Specifically, five circular economy opportunities are being implemented:
Purchase of local products
Reuse of electronic waste
Reuse of plastic waste
Scrap metal utilisation for social projects
Use of drilling cuts
Sustainability Frameworks
We align our operations and policies to national and international frameworks.
Achieving excellence is not only about complying with legal requirements; it is essential to implement the highest standards and guidelines to enhance the processes and conduct our business ethically, transparently and efficiently.
Biodiversity Management Program (BMP)
SierraCol Energy is committed with the protection of the environment, respect for life, and ecosystem services through the implementation of the Biodiversity Management Program (BMP). This program is based on conservation actions, strategies for sustainable use of natural resources, contribution to knowledge, risk management, and alignment with international and national standards. The pillars of the BMP are:
Contribute to
“Nature-Positive”*
Knowledge Management
Community Participation
Decision-making through the mitigation hierarchy framework
*Nature-Positive: As defined by the World Economic Forum is an approach that enriches biodiversity, stores carbon, purifies water and enhances the resilience of our planet.
BMP Commitments
Development of a Biodiversity Plan for Priority Areas
Implement the mitigation hierarchy framework
Meet Biodiversity Management Program’s targets and goals
Consider local threats to biodiversity beyond our operations and activities
Biodiversity Management Program (BMP)
Sustainability Frameworks
We align our operations and policies to national and international frameworks.
Achieving excellence is not only about complying with legal requirements; it is essential to implement the highest standards and guidelines to enhance the processes and conduct our business ethically, transparently and efficiently.
In January 2023, SierraCol Energy received an ESG Risk Rating of 27.3 and was assessed by Sustainalytics to be at medium risk of experiencing material financial impacts from ESG factors.
Social
Our commitment to social responsibility includes the management of four key material social topics: communities, human rights, health and safety, and human talent. The strategy is aimed at developing safe and reliable operations to build constructive relations with all stakeholders.
OUR SOCIAL PILLARS:
Communities
Human rights
Health and safety
Human talent ~/working-with-us
Communities
Our Communities
We are deeply committed to improving the living conditions of our neighbouring communities.
Our social management programmes include careful planning of community investment, the development of a proactive relationship programme with our stakeholders, proper land management, and the administration of job opportunities with focus on promoting local labour and contractors, among others. We contribute by creating economic, environmental and social value, generating taxes, royalties, jobs, goods and services, connectivity and community investment that help improve lives and build a better future for society.
2022
figures
6.4m
*Community investment
63%
of goods and services purchased originated in national and local suppliers and contractors
417m
in purchases from Colombian suppliers
6.4m
*Community investment
63%
of goods and services purchased originated in national and local suppliers and contractors
417m
in purchases from Colombian suppliers
80m
in purchases from local (surrounding municipalities) suppliers
31.2m
Purchases from local (surrounding municipalities) suppliers for USD $31.2 million
970
total suppliers and contractors, including 660 national companies and 173 local companies
250m
taxes paid and estimated royalties
80m
in purchases from local (surrounding municipalities) suppliers
970
total suppliers and contractors, including 660 national companies and 173 local companies
250m
taxes paid and estimated royalties
* This figure corresponds to the gross community investment executed in the Caño Limón area, Central Llanos and La Cira Infantas.
Social and human development
Family, community & productive infrastructure
Economic diversification
Financial inclusion
Environmental sustainability
Social and human development
Social and human development
In Arauca, the community investment is executed through El Alcaraván Foundation, which is an institution created by Ecopetrol and SierraCol Energy for the benefit of our communities.
Family, community & productive infrastructure
Family, community & productive infrastructure
In Arauca, the community investment is executed through El Alcaraván Foundation, which is an institution created by Ecopetrol and SierraCol Energy for the benefit of our communities.
Economic diversification
Economic
diversification
In Arauca, the community investment is executed through El Alcaraván Foundation, which is an institution created by Ecopetrol and SierraCol Energy for the benefit of our communities.
Financial inclusion
Financial inclusion
In Arauca, the community investment is executed through El Alcaraván Foundation, which is an institution created by Ecopetrol and SierraCol Energy for the benefit of our communities.
Environmental sustainability
Environmental sustainability
In Arauca, the community investment is executed through El Alcaraván Foundation, which is an institution created by Ecopetrol and SierraCol Energy for the benefit of our communities.
Human rights
Human Rights:
We are committed to respecting and promoting human rights involving all stakeholders
All of the Company’s operations are performed in a manner that provides security to its personnel, and respects Colombian and international laws related to human rights.
Our internal policies, processes and procedures are guided by the:
We promote and respect the Human Righs along our value chain
Universal Declaration of Human Rights
United Nations Guiding Principles on Business and Human Rights
International Labour Organization (ILO) Convention 169 on Fundamental Principles and Rights at Work
We promote and respect the Human Righs along our value chain
As part of our operational due diligence, we conduct human rights impact assessments.
We proactively engage with multi-stakeholder initiatives that aim to support human rights to generate positive impact, not only in the communities where we operate, but more broadly in society.
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Grievance Mechanisms
Through our Inquiries Response System SAI (as per the Spanish acronym) we receive and manage the suggestions, petitions, complaints and/or claims of the communities and other stakeholders.
Communities Coordinator
Edificio Torre Once 93 – Calle 93A # 10-54 Bogotá Colombia
Switchboard: +57 (601)3454155
Health and safety
Grievance Mechanisms
Through our Inquiries Response System SAI (as per the Spanish acronym) we receive and manage the suggestions, petitions, complaints and/or claims of the communities and other stakeholders.
Grievance mechanism
Communities Coordinator
Edificio Torre Once 93 – Calle 93A # 10-54 Bogotá Colombia
Switchboard: (57 1) 606 9339 – (57) 3508716064
SAI@sierracol.com
www.sierracolenergy.com
Health and Safety
Health and Safety are considered a fundamental pillar of SierraCol Energy’s practices.
The Company integrates programmes aimed at preventing and mitigating incidents and reducing risks for employees, contractors and neighbouring communities. Employees’ and contractors’ health is essential to SierraCol.
Every year we arrange occupational health tests and epidemiological surveillance programmes to prevent or control health conditions. We implement innovative health campaigns aimed at promoting healthy lifestyles.
SierraCol Energy is continually working on building and strengthening a robust culture that enables all workers to perform their jobs in a safe and healthy environment. This culture is based on the following pillars:
• Behaviour-based safety
• Operational discipline
• Contractor management
• Permit to work
• Management of change
• Stop work authority
• Occupational health programmes
• Process safety and asset integrity
• Behaviour-based safety
• Operational discipline
• Contractor management
• Permit to work
• Management of change
• Stop work authority
• Occupational health programmes
• Process safety and asset integrity
• Operational discipline
• Contractor management
• Permit to work
• Management of change
• Stop work authority
• Occupational health programmes
• Process safety and asset integrity
Total
Recordable
Incidents
Rate
Total Recordable
Incidents Rate
Incidents Rate
Labour Hours (million)
TRIR
SierraCol Energy continually works to strengthen and build a robust safety culture that enables all workers to perform their jobs in a safe and healthy environment.
This culture is based on the following pillars:
Human talent ~/working-with-us
Governance
Solid Governance
to Create
Value
Solid Governance to
Create Value
Our governance system provides oversight on what we do and how we do, ensuring compliance with legal requirements and stringent international standards
Our Board of Directors is engaged in the continuous improvement of our governance. We evaluate and adjust corporate policies and procedures
to guarantee responsible, transparent and sustainable business growth, ensuring the creation of value for our stakeholders.
Our Integrated Operational Management System (MS) establishes policies, procedures, standards and guidelines, permanently updated to fulfil international standards. Our MS also seeks further alignment with sustainable development goals. We are prepared to make decisions and build our future with a sustainable management approach.
Sustainable
Management Approach:
Sustainable Management Approach:
- Our Board of Directors oversees ESG.
- We believe that the ethical requirements established in our business code of conduct guides our way to do business.
- We participate in the Extractive Industry Transparency Initiative (EITI).
We are improving our Management System by aligning its content with the IOGP 510 model and incorporating elements of the ISO 14001 and ISO 26000 standards and the standards of the World Bank, the IFC, Equator Principles and local regulations.
Integrated
Operational
Management
System (MS)
Continuous improvement
Leadership
Risk management
Implementation
Integrated Operational Management< System (MS)
Publications
Equal Opportunities Policy
Political Contributions, Lobbying and Other Political Activities Policy
Anti Bribery and Corruption Policy
Diversity, Equity and Inclusion Policy
SierraCol Energy Diversity, Equity and Inclusion Statement
SIGO
TCFD 2021
TCFD 2022
Anti-Bribery and Corruption Policy
Política sobre Contribuciones Políticas, Cabildeo y otras Actividades Políticas
Política contra el Soborno y la Corrupción
Política de Diversidad, Equidad e Inclusión (DEI)
Declaración de Diversidad, Equidad e Inclusión (DEI)
SIGO
TCFD
TNFD 2023
Anti-Bribery and Corruption Policy
