Stakeholder Capitalism Metrics (SCM) Index
A World Economic Forum (WEF) and International Business Council (IBC) led initiative.
Starting January 2021, Ecopetrol will report using the WEF/IBC Stakeholder Capitalism Metrics. which were released September 2020. Ecopetrol is currently working on strengthening its information and reporting mechanisms to fully comply moving forward with these set metrics.
2020 Integrated Sustainable Management Report
20F
THEME | # | SCM METRICS AND DISCLOSURE | SCM sequence | Where to find | ||||
PRINCIPLES OF GOVERNANCE- Core | ||||||||
Governing | 1 | Setting purpose | Ch 1, Pg. 24. | |||||
purpose | The company's stated purpose, as the expression of the means by which a | |||||||
business proposes solutions to economic, environmental and social issues. | WEF 1 | |||||||
Corporate purpose should create value for all stakeholders, including | ||||||||
shareholders. | ||||||||
Quality of | 2 | Governance body composition | Ch 1, Pgs. 29, 35, 39 | |||||
governing | Composition of the highest governance body and its committees by: | and 44. | ||||||
body | competencies relating to economic, environmental, and social topics; | |||||||
executive or non-executive; independence; tenure on the governance body; | WEF 2 | |||||||
number of each individual's other significant positions and commitments, and | ||||||||
the nature of the commitments; gender; membership of under-represented | ||||||||
social groups; stakeholder representation. | ||||||||
Stakeholder | 3 | Material issues impacting stakeholders | Ch 1, Pg. 25. | |||||
engagement | A list of the topics that are material to key stakeholders and the company, | WEF 3 | ||||||
how the topics were identified and how the stakeholders were engaged. | ||||||||
Ethical | 4 | Anti-corruption | Ch 1, Pgs. 53, 54, 55, 57 | |||||
behaviour | 1. Total percentage of governance body members, employees and business | and 59. | ||||||
partners who have received training on the organization's anti-corruption | ||||||||
policies and procedures, broken down by region. | ||||||||
a) Total number and nature of incidents of corruption confirmed during | WEF 4 | |||||||
the current year but related to previous years; and | ||||||||
b) Total number and nature of incidents of corruption confirmed during | ||||||||
the current year, related to this year. | ||||||||
2. Discussion of initiatives and stakeholder engagement to improve the | ||||||||
broader operating environment and culture, in order to combat corruption. | ||||||||
1
Ethical | 5 | Protected ethics advice and reporting mechanismsA description of | Ch. 1, Pgs. 52 and 56. | ||||
behaviour | internal and external mechanisms for:1. Seeking advice about ethical and | ||||||
lawful behaviour and organizational integrity; and2. Reporting concerns | WEF 5 | ||||||
about unethical or unlawful behaviour and lack of organizational integrity. | |||||||
Risk and | 6 | Integrating risk and opportunity into business process | Ch. 1, Pg. 62. | ||||
opportunity | Company risk factor and opportunity disclosures that clearly identify the | ||||||
oversight | principal material risks and opportunities facing the company specifically (as | ||||||
opposed to generic sector risks), the company appetite in respect of these | WEF 6 | ||||||
risks, how these risks and opportunities have moved over time and the | |||||||
response to those changes. These opportunities and risks should integrate | |||||||
material economic, environmental and social issues, including climate change | |||||||
and data stewardship. | |||||||
THEME | # | SCM METRICS AND DISCLOSURE | SCM sequence Where to find | ||||
PRINCIPLES OF GOVERNANCE- Expanded | |||||||
Governing | 1E | Purpose-led management | Ch 0, Pg. 12; Ch 1, Pg. | ||||
purpose | How the company's stated purpose is embedded in company strategies, | WEF 1E | 24. | ||||
policies and goals. | |||||||
Quality of | 2E | Progress against strategic milestones | NA | ||||
governing | Disclosure of the material strategic economic, environmental and social | ||||||
body | milestones expected to be achieved in the following year, such milestones | ||||||
achieved from the previous year, and how those milestones are expected to | |||||||
or have contributed to long-term value. | WEF 2E | ||||||
2
Quality of | 3E | Remuneration | Ch 4, Pg. 146. | |||||
governing | 1. How performance criteria in the remuneration policies relate to the | |||||||
body | highest governance body's and senior executives' objectives for economic, | |||||||
environmental, and social topics, as connected to the company's stated | ||||||||
purpose, strategy and long-term value. | ||||||||
2. Remuneration policies for the highest governance body and senior | ||||||||
executives for the following types of remuneration: | ||||||||
- Fixed pay and variable pay, including performance-based | WEF 3E | |||||||
pay, equity-based pay, bonuses and deferred or vested | ||||||||
shares | ||||||||
- Sign-on bonuses or recruitment incentive payments | ||||||||
- Termination payments | ||||||||
- Clawbacks | ||||||||
- Retirement benefits, including the difference between benefit | ||||||||
schemes and contribution rates for the highest governance | ||||||||
body, senior executives and all other employees | ||||||||
Ethical | 4E | Alignment of strategy and policies to lobbying | Ch 1, Pg. 69. | |||||
behaviour | The significant issues that are the focus of the company's participation in | |||||||
public policy development and lobbying; the company's strategy relevant to | WEF 4E | |||||||
these areas of focus; and any differences between its lobbying positions and | ||||||||
its purpose, stated policies, goals or other public positions. | ||||||||
Ethical | 5E | Monetary losses from unethical behaviour | Ch 1, Pg. 57. | |||||
behaviour | Total amount of monetary losses as a result of legal proceedings associated | |||||||
with fraud, insider trading, anti-trust,anti-competitive behaviour, market | WEF 5E | |||||||
manipulation, malpractice or violations of other related industry laws or | ||||||||
regulations. | ||||||||
Risk and | 6E | Economic, environmental, and social topics in capital allocation | Ch 1, Pg. 41; Ch 2, Pg. | |||||
opportunity | framework | 74. | ||||||
oversight | How the highest governance body considers economic, environmental and | WEF 6E | ||||||
social issues when overseeing major capital allocation decisions, such as | ||||||||
expenditures, acquisitions and divestments. | ||||||||
3
THEME | # | SCM METRICS AND DISCLOSURE | SCM sequence | Where to find | ||||||
PLANET- Core | ||||||||||
Climate | Greenhouse gas (GHG) emissions | Ch. 5, Pg. 223. | ||||||||
Change | For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous | |||||||||
oxide, F-gases etc.), report in metric tonnes of carbon dioxide equivalent | ||||||||||
7 | (tCO2e) GHG Protocol Scope 1 and Scope 2 | WEF 7 | ||||||||
emissions. | ||||||||||
Estimate and report material upstream and downstream (GHG Protocol | ||||||||||
Scope 3) emissions where appropriate. | ||||||||||
Climate | TCFD implementation | Ch. 5, Pgs. 204, 222, | ||||||||
Change | Fully implement the recommendations of the Task Force on Climate-related | and 234. | ||||||||
Financial Disclosures (TCFD). If necessary, disclose a timeline of at most | ||||||||||
8 | three years for full implementation. Disclose whether you have set, or have | WEF 8 | ||||||||
committed to set, GHG emissions targets that are in line with the goals of | ||||||||||
the Paris Agreement - to limit global warming to well below 2°C above | ||||||||||
preindustrial levels and pursue efforts to limit warming to 1.5°C - and to | ||||||||||
achieve net-zero emissions before 2050. | ||||||||||
Nature loss | Land use and ecological sensitivity | Ch. 5, Pg. 251. | ||||||||
9 | Report the number and area (in hectares) of sites owned, leased or managed | WEF 9 | ||||||||
in or adjacent to protected areas and/or key biodiversity areas (KBA). | ||||||||||
Freshwater | Ch. 5, Pgs. 210 and 217. | |||||||||
availability | ||||||||||
Water consumption and withdrawal in water-stressed areas | ||||||||||
Report for operations where material: megaliters of water withdrawn, | ||||||||||
10 | megaliters of water consumed and the percentage of each in regions with | WEF 10 | ||||||||
high or extremely high baseline water stress, according to WRI Aqueduct | ||||||||||
water risk atlas tool. Estimate and report the same information for the full | ||||||||||
value chain (upstream and downstream) where appropriate. | ||||||||||
4
THEME | # | SCM METRICS AND DISCLOSURE | SCM sequence | Where to find | ||||||||
PLANET - Expanded | ||||||||||||
Climate | Paris-aligned GHG emissions targets | |||||||||||
Change | Define and report progress against time-boundscience-based GHG | |||||||||||
emissions targets that are in line with the goals of the Paris Agreement - to | ||||||||||||
limit global warming to well below 2°C above pre-industrial levels and | ||||||||||||
pursue efforts to limit warming to 1.5°C. This should include defining a date | ||||||||||||
7E | before 2050 by which you will achieve net-zero greenhouse gas emissions, | WEF 7E | Ch 5, Pgs. 223 and 228. | |||||||||
and interim reduction targets based on the methodologies provided by the | ||||||||||||
Science Based Targets initiative, if applicable. | ||||||||||||
If an alternative approach is taken, disclose the methodology used to | ||||||||||||
calculate the targets and the basis on which they deliver on the goals of the | ||||||||||||
Paris Agreement. | ||||||||||||
Climate | ||||||||||||
Change | Impact of GHG emissions | |||||||||||
8E | Report wherever material along the value chain (GHG Protocol Scope 1, 2 & | WEF 8E | NA | |||||||||
3) the valued impact of greenhouse gas emissions. Disclose the estimate of | ||||||||||||
the societal cost of carbon used and the source or basis for this estimate. | ||||||||||||
Nature loss | Land use and ecological sensitivity | |||||||||||
Report for operations (if applicable) and full supply chain (if material): | ||||||||||||
- Area of land used for the production of basic plant, animal or mineral | ||||||||||||
commodities (e.g. the area of land used for forestry, agriculture or mining | ||||||||||||
activities). | ||||||||||||
- Year-on-year change in the area of land used for the production of basic | ||||||||||||
plant, animal or mineral commodities. | ||||||||||||
Note: Supply-chain figures can initially be estimated where necessary | ||||||||||||
9E | based on the mass of each commodity used and the average mass | WEF 9E | NA | |||||||||
produced per unit of land in different sourcing locations. | ||||||||||||
- Percentage of land area in point 1 above or of total plant, animal and | ||||||||||||
mineral commodity inputs by mass or cost, covered by a sustainability | ||||||||||||
certification standard or formalized sustainable management program. | ||||||||||||
Disclose the certification standards or description of sustainable | ||||||||||||
management programs along with the percentage of total land area, mass | ||||||||||||
or cost covered by each certification standard/program. | ||||||||||||
Nature loss | ||||||||||||
Impact of land use and conversion | ||||||||||||
10E | Report wherever material along the value chain: the valued impact of use | WEF 10E | NA | |||||||||
of land and conversion of ecosystems. | ||||||||||||
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Ecopetrol SA - Empresa Colombiana de Petroleos published this content on 26 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2021 18:20:06 UTC.