Supply chain sustainability
Sustainability is integral to our procurement process. By actively engaging with suppliers to learn and share sustainable practices, we seek to enhance our business methods and operational efficiency. This proactive approach allows us to effectively manage risks, minimize impacts, and enhance overall value across our supply chain. We work to foster business opportunities and promote the growth of local and diverse suppliers within our supplier network.
As an organization committed to sustainable development, we recognize the critical role that suppliers play. Engagement with suppliers is a fundamental aspect of our sustainability strategy. We collaborate with our suppliers to assess their sustainability practices and look for alignment with our values and objectives. Through dialogue, we foster a shared commitment to environmental stewardship and community well-being.
We regularly engage our suppliers through business reviews and supplier audits to:
An important element of our strategy is ongoing engagements with key suppliers where we collaborate with them on our strategic sustainability objectives. Read more here.
In 2024 ConocoPhillips conducted annual supplier engagements, featuring one-on-one discussions with each third party to address common themes and challenges. Suppliers were selected based on the relative impact of emissions associated with the goods and services they provide, such as chemicals, pumping equipment, oil country tubular goods, and EPC (engineering, procurements and construction). These engagements were hosted by ConocoPhillips’ Supply Chain, Sustainable Development, Low Carbon, and Commercial teams.
The primary focus of these engagements was on sharing sustainability strategies and key learnings and challenges in estimating supply chain emissions. Emphasis was placed on strategic partnerships, data transparency, and the importance of data and category definitions.
Overall, the engagements in 2024 reflected a deeper collaboration with suppliers, covering data management, and strategic initiatives with the ultimate aim of addressing and reducing emissions across the supply chain.
Through our annual Supplier Recognition Awards, we honor suppliers who uniquely contribute to our business in a positive manner. Read more about our 2024 winners.
The supply chain function contributes to the company’s Sustainable Development commitments by integrating sustainability into our processes and procedures. We engage with suppliers and contractors through our Quarterly Business Reviews, Supplier Relationship Management, sourcing events and supplier audits, leveraging insights from these engagements to continuously enhance internal processes for managing suppliers.
We endeavor to conduct all contracting and procurement activities in a responsible manner in accordance with our Supply Chain Policy and applicable laws. We require suppliers to comply with certain requirements as a condition of business and to be guided by the principles and standards set forth in the and their own ethics and conduct policies. Our Code of Business Ethics and Conduct: Expectations of Suppliers is reviewed annually and updated as applicable. The document provides added clarity to our suppliers regarding our expectations in the areas of: Integrity, Labor and Human Rights, Health, Safety and Environment, and Sustainable Development.
Our contract templates incorporate requirements for export compliance and the U.S. Foreign Corrupt Practices Act among other requirements. ConocoPhillips prohibits any form of money laundering and follows all domestic and international laws governing money laundering. ConocoPhillips strives to prevent money laundering through procurement policies, vetting, due diligence and payment鈥痯rocesses.
We prioritize enhancing supplier capability and capacity in our procurement processes and expect our suppliers to follow suit. We highly value purchasing goods and services locally and are dedicated to giving local contractors and suppliers the chance to engage in projects and operational needs, typically through a competitive bidding process. We actively seek opportunities to develop local suppliers and encourage local hiring to meet our business requirements. Read more about how we are creating shared value in communities.
At ConocoPhillips we view Supplier Diversity as a proactive business process that provides diverse suppliers equal access opportunity to provide materials and services to our company. We believe that long-term success and diverse supplier inclusion go hand in hand.
We do business with qualified minority, woman, disabled, LGBTQ+ or veteran-owned small business enterprises, as well as global, local and Indigenous suppliers around the world. This approach attracts qualified suppliers, stimulates local economic development, and creates long-lasting social and economic benefits in our stakeholder communities. In the U.S., our 2024 Supplier Diversity spend totaled $1,113 million with Indigenous businesses, businesses owned by veterans, minorities, women, members of the LGBTQ+ community, service-disabled people and historically underutilized businesses. An additional $1.038 million was spent with small business enterprises.
In 2024, ConocoPhillips was an active corporate member of 11 national and local supplier diversity nongovernmental organizations in the U.S. These organizations promote and support development, mentorship, and scholarship programs that contribute to building capabilities and supporting growth of minority business enterprises.
ConocoPhillips also continued as an active corporate member of the American Petroleum Institute Supplier Diversity Task Force, with the primary focus of supporting its Blue Wave business training program. The objective of this program is to upskill minority-owned businesses to better position them to compete in the oil and gas industry.