116

CHAPTER 4 Responsible management

Globally, in 2019 around 84% of the con- tracts were with national suppliers in our locations with significant operations, with nearly 38% of the amount contrac- ted from local suppliers or locally imple- mented. We only contract with non-do- mestic suppliers for highly specialised goods, equipment or services that are dependent on multinational technology, such as catalysts, industrial chemicals, specialised control equipment and sys- tems or licences. In this sense, our co- mmitment is to continue developing plans to promote local contracting. To do so we identify the suppliers and evaluate them, and we assess the impact of local con- tracting on Cepsa and identify those con- tracts that could be managed locally.

As a result of this process, several areas of action with local suppliers have been identified, such as:

Identify new areas of contracting with local suppliers with a good perfor- mance evaluation.

Communicate areas of improvement to suppliers with lower scores, follow up and provide training in safety, tech- nical or management issues as appro- priate.

Establish locally manageable con- tracts and orders by defining supply and service lines where these can be achieved.

Include in the procurement decision the assessment of the local compo- nent, integrating this criterion in the strategy and awarding committees.

Make available the services that Cep- sa contracts with advantageous con- ditions (mutual benefit).

Our objective is to maintain transparent, stable and lasting relationships with our suppliers based on trust and mutual be- nefit, for which a specific area has been established within the procurement unit exclusively and transversally dedicated to the management of these relationships.

The principles that govern these relation- ships are set out in our Supplier Relations Guide, which also establishes the objec- tives and guidelines on which we rely.

In 2019, a series of webinars were held for Cepsa's suppliers by the procurement area and the Ethics and Compliance Office in order to convey to Cepsa's active suppliers the values and ethical princi- ples on which the relationship should be based. Cepsa wants to ensure through this measure that third parties who su- pply goods or services are aware of and respect our standards.

SUPPLIER RELATIONSHIP MANAGEMENT

WEBINAR FOR OUR SUPPLIERS

+800

Suppl ier ma

nagem ent //

Comm unicat

ion // A ction p

lans Registration and approval

Performance assessment

Audit

Segmentation and risk map

More information about our relationship with suppliers