Assesments and Local Procurement

Close collaboration between our contractual partners (suppliers) and the Procurement Department in OMV Petrom is a key element for good supplier relationship management. We foster the partnering relationships with our suppliers through a standardized evaluation system making sure that we collect the feedback regularly, whereas the input from suppliers can make a difference using the diverse channels implemented so far such as supplier audits, supplier meetings, ESG assessments, and 360-degree evaluations. Since the implementation of a standardized concept focused on enhancing supplier quality management back in 2017, Procurement has assessed annually its strategic suppliers in the areas of environment, social and governance to raise awareness on the ESG agenda and OMV Petrom’s commitments to it, such as GHG reduction targets and environmental programs. In 2020, the Procurement Department assessed 16 strategic suppliers, hence reaching its goal to receive feedback on ESG elements from all its strategic suppliers by the end of 2020. Most of the suppliers in the scope of these assessments were in line with our requirements, and for identified areas of improvement (for example human rights), recommendations were agreed upon.

In order to meet the COVID-19 restrictions, suppliers meetings continued taking place online, ensuring an agile interaction with strategic suppliers and connection on a global level. We ran 360-degree questionnaires, the feedback was discussed on current open issues, insights were given and received on dedicated topics, and development-oriented action plans were agreed upon for 2021. Finally, we wanted to pay considerable attention to our climate change and carbon management plans along the supply chain and shared our strategic approach and examples to improve the carbon footprint, looking towards 2021 and beyond. In addition to building up a much greater level of understanding of the nature of carbon emissions from materials and services purchased by the Procurement Department in OMV Petrom, sustainability initiatives and insights of both parties were used as examples to improve environmental impact and limit its impact on climate change.

Due to the COVID-19 impact on our day-to-day activities, the Procurement Department has revised and defined a new supplier audit process. Supplier audits are organized in OMV Petrom during the pre-qualification process and/or during contract implementation. The audits aim is to measure the performance of our suppliers and define actions, which will enable them to optimize performance and meet our Company requirements. During the audits, we pay special attention to the financial stability of our suppliers, their strategic and organizational aspects, supply chain, and sustainability (e.g., human rights, carbon management, environmental management, certifications, social responsibility).

In 2020, Procurement Department performed 12 audits with sustainability topics covered. The suppliers selected are providing services and goods both for the Upstream and Downstream Business Units. All the audits have been performed remote due to the travel restrictions imposed by COVID-19. Ten of the suppliers assessed had follow-up measures in place which are in different implementation stages as agreed upon with suppliers. None of the audits performed showed actual or potential environmental and social impacts in the supply chain.