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80% of our procurement is for services, while the rest is mainly accounted for by goods and equipment. We rigorously control current contracts and subcon- tracting authorisations to ensure that
the businesses we work with are com- pliant with all their legal obligations and our health and safety and environmental requirements.
most of our suppliers are domestic, i.e., domiciled in the same country as the Cepsa company that contracts them. We encourage our companies in each of the geographies where we operate to engage local or locally based suppliers. Localis- ing procurement makes it easier for us to control risks in each country. No supplier has been detected that involves very high risk by reason of location.
by working with local suppliers, we cre- ate value for our host communities, by enhancing their capabilities and contrib- uting to local economic development. In 2017, about 87% of our procurement came from domestic suppliers at loca- tions where we have significant opera- tions, with more than 42% of the value being awarded to local or locally based
suppliers, who in turn accounted for over 30% of all our suppliers.
In Spain, where we carry out a signifi- cant portion of our business, 55% of our suppliers are domestic, and together ac- count for 64% of expenditure managed by Purchasing. Over 50% of procurement is awarded to local or locally based suppli- ers in the areas where our activities are located (Site Palos, Site San Roque and Site Tenerife).
Our internationalisation has prompted us to carry over this commitment to local de- velopment to the rest of countries where we operate, and we have risen to the chal- lenge of creating specific development plans for each geographical region.
1 Europe includes: Austria, belgium, Denmark, France, germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, United kingdom and Switzerland. 2 Africa includes: kenya, morocco and Nigeria. 3 Americas includes: Argentina, brazil, Canada, Colombia, United States, Panama and Peru. 4 Asia and Oceania includes: Australia, bahrain, China, United Arab Emirates, India, Japan, malaysia, New Zealand, Singapore and Thailand. 5 Segment v suppliers are excluded (outside the scope of purchasing management). 6 The reported information refers to purchases made by the Purchasing and Contracting Department, excluding purchases of crude oil and other raw materials.
CONTRACT vALUE by gEOgRAPHICAL AREA 1, 3, 4, 5, 6 NO. OF SUPPLIERS by gEOgRAPHICAL AREA 1, 2, 3, 4, 5, 6
64% Spain
11% Europe 11.7%
Europe
0.2% Africa
9% Asia and Oceania
10.1% Asia and Oceania
16% Americas
22.6% Americas
55.4% Spain
2017 ANNUAL AND CORPORATE RESPONSIbILITy REPORT
