We develop our value chain to be efficient. Each link reflects our commitment to quality, ethics and sustainability.
GRI (3-3) Our value chain and sustainable supply allow us to be aligned with the corporate strategy, which seeks responsible, profitable and respectful growth. Likewise, we leverage our sustainability policy Celsia PermaneC to incorporate environmental, social and corporate governance variables and deliver high-value solutions to the organization that meet the needs and expectations of our teams
We work with our suppliers jointly, since they are our partners and, in that sense, it is essential for them to incorporate good practices into their processes, with a sustainable approach that adds value to the business ecosystem, through comprehensive ESG (Environmental, Social and Corporate Governance) risk management.
Our Management
GRI (3-3) Managing this stakeholder implies two-way growth. What we seek is to guarantee the sustainability of our supply chain through its development, adequate segmentation, timely management of risks that may arise, continuous improvement, and promotion and respect for human rights.
In 2023, we had contractual relationships with
between Colombia and Central America
were local
were local
We cause impacts and manage them through our value chain management and sustainable supply:
- We improve our processes for identification, selection and contracting to minimize risks throughout the chain.
- We contribute to developing our areas of influence by hiring local suppliers.
- We encourage sustainable purchases, prioritizing the local market for a positive impact on the cost of raw materials and the development of the national industry.
- We develop our suppliers to contribute to their performance and growth, strengthening our long-term relationships.
- We train our suppliers in environmental, social issues (human rights, Occupational Health and Safety, and others) and corporate governance.
- We pursue circular economy initiatives to reincorporate and take advantage of our products in the value chain cycle.
The development of these initiatives is framed in the guidelines of the Supply Chain, Code of Conduct for Suppliers,spaces for engagement and communication, and methodologies for identifying and assessing risks and opportunities.
Supply Chain
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planning
Purchase Negotiation
Trade
Logistics
Our sourcing 4.0 (digital transformation) and sustainable sourcing pillars:
- Strengthening the engagement and risk management model of the supply chain.
- Boosting simplification and digitization initiatives to enhance transforming the supply chain and ensure a greater contribution to the business strategy.
- Developing and promoting lines of action that promote creating social value for suppliers, ensuring their operation and employability.
- Developing new skills and competencies that allow us to address the challenges and opportunities that arise from new business models and global trends.
- Including environmental, social and corporate governance criteria in purchasing, logistics, planting and supplier management, through a sustainable sourcing maturity model.
Supply
Contributing to the growth of local suppliers and encouraging the development of the economy of each country in which we are present is essential for our company.
Risk Identification and Management in the Supply Chain
GRI (414-2) (409-1) (408-1) (407-1) (308-2) We identify risks based on comprehensive management methodologies and standards. The risk team deploys the methodology for the entire company with transverse probability and impact matrices, and there is a risk manager in each one of our teams.
For the supply chain, we perform the identification process annually, and the action plans are monitored quarterly. For each process, we carry out a workshop to identify and qualify risks and opportunities.
As a result of this process, we generate a report for each method, draw up six risk matrices with action plans to reduce their probability or impact, and evaluate the set of controls, treatment measures and environmental, social and corporate governance variables.
Significant Suppliers
For Celsia, significant suppliers are those that meet any of the following criteria:
- High purchasing volumes.
- Some kind of dependency.
- With whom we have a distribution operation contract.
- Those with gaps in social, environmental and corporate governance issues.
High risk in sustainability can affect the development and achievement of the company’s strategic objectives, with a look at ESG aspects.
ESG aspects
Sustainability in the Supply Chain
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KPI 1
Measure and evaluate ESG criteria in RFPs for contracting services.
KPI 2
% Average implementation of action plans applied to the risks identified in the supply chain.
KPI 3
% of supplier satisfaction with supply chain management.
Results of 3 key Indicators in Recent Years
Priorities in the Supply Chain Management Strategy
GRI (414-2) (409-1) (408-1) (407-1) (308-2)
- Continuously strengthening the engagement model with suppliers to promote collaborative work, integrate them into the Celsia strategy and culture, enhance their performance and compliance, and improve their contribution to the value chain.
- Supply Chain Risk Management, anticipating the materialization of risks through the formulation of strategies and definition of controls, monitoring their application and measuring their effectiveness.
- Alignment as partners of change to our Supply 4.0 strategy and to the trends that impact the company’s businesses, providing solutions to the main needs of our customers.
- Incorporating sustainable supply as a fundamental pillar throughout the supply chain: including ESG requirements in RFP purchases, developing suppliers with an ESG focus and segmenting suppliers into different channels to properly manage this stakeholder.
- An operating model transformation to provide efficient and differentiated solutions, leveraging the growth of the company and the needs of our customers.
ESG Assessment
GRI (308-1) (414-1)
Selection
We have a supplier selection process in which we evaluate the offers to suppliers participating in a negotiation process. The weight of ESG variables is 30% and includes the evaluation of supplier risk (financial), OHS (good occupational health and safety practices and leadership commitment) and sustainability (sustainable purchasing). This model applies to all those we invite to participate through RFP processes (Request for Proposal).
Sustainable purchasing criteria are circular economy, carbon footprint, gender equality, vulnerable population, human rights, ML/TF, certifications and environmental enablers.
Assessment
The ESG criteria (environmental, social and governance) we take into account are:
0-10%
Financial
35-50%
Economic
35-50%
Technica
0-10%
OHS
0-10%
Sustainability
This margin is variable according to the type of contracted good/service.
Supplier Development
We seek the development of our suppliers through continuous improvement and the strengthening of their organizational structure, in order to increase productivity, two-way business competitiveness, risk mitigation, supply chain consolidation and the building of long-term relationships. The development initiatives are aligned with Celsia PermaneC’s Sustainability strategy, where we cover the following fronts:
- Supplier Development Program with ESG focus through a third party.
- Training for our suppliers according to the needs identified in each period.
- Human Rights.
- YEC School (Yo Elijo Cuidarme) is aimed atstrengthening management and performance in occupational health and safety.
- Environmental vertical development through an ally where environmental legislation, carbon footprint and environmental impacts are strengthened.
- Socio-environmental induction for suppliers of the farm maintenance operation.
Number of suppliers developed in the development lines
ESG objectives in supply chain management
Comprehensive risk management in the supply chain.
Applying the comprehensive risk management model allows us to mitigate supply chain risks and market impacts, identify opportunities and develop engagement models that adapt to the reality of the business and obtain the necessary information to define the focus of intervention and development. The methodology is also useful for assessing the risks associated with supply chain projects and highlighting weaknesses in processes, to define action plans that minimize their probability and/or impact.
Incorporating sustainable practices to guarantee efficiency in processes, transparency and mitigation of socio-environmental impacts, thereby maximizing economic benefits.
- We incorporate sustainable practices in all business processes as a long-term commitment that contributes to the Sustainable Development Goals: economic growth, social inclusion and environmental protection.
- We promote the development of our stakeholders, identifying their priorities and good ESG practices, to achieve higher quality in their services and products, and, in this way, continue working responsibly and with a focus on the environment and the community.
- We support the circular economy through regular workshops, in which we collect ideas to use materials better and extend the life cycle of products, repairing, renewing and recycling them.
Main Results
GRI (3-3)
We maintained a positive result of 91% in the Supplier Satisfaction Survey.
We developed 30 suppliers in environmental matters, with a partnered consultant, focused on three fronts: carbon footprint, environmental impacts and regulations, with a total of 20 hours, virtually.
We held the First Supplier Meeting as Grupo Empresarial Argos with a focus on diversity, equity and inclusion.
We held a Virtual Talk for our suppliers about sustainable purchasing, gender equality, the compliance program, and other topics.
We held three editions of the Virtual Supplier Bulletin, with relevant and current information.
We applied the Ethical Climate Survey for our suppliers, to get to know their vision of our processes and the importance of transparency.
We updated the Code of Conduct for suppliers, in which we included the topic of biodiversity.
We strengthened the sustainable sourcing guidelines, among which there are ESG issues in our chain and with our suppliers. We disseminated this strategy internally and externally.
Fifteen suppliers participated in the new mentoring cycle, with support from a partnered consultant from Fundación Grupo Argos.
We updated the communication channels with suppliers for warehouse management and created other supply warehouses: Teams, SABE and PACo chatbot for our suppliers.
We are implementing the logistics model, in accordance with the prioritization of needs and budgets: infrastructure, procedures and skills development.
We made improvements to the Tallyapp app for taking physical inventories, in order to be timelier and more reliable with the information. Now we are implementing the same app for contractor inventories.
We made eight engagement visits with suppliers.
We maintained the Equipares Gold seal in the internal audit of the Gender Equality Management System, awarded by ICONTEC in 2022, which ratified the improvements in executing our practices.
We documented all supplier development activities carried out in recent years. Moreover, different company teams joined the Supplier Development worktable to add efforts, capacities and needs to this stakeholder.
We included six suppliers from the internet, commercial and T&D business to the YEC School.
We had contractual relationships with 2,614 suppliers.
We held the first Celsia Experience Day for our suppliers, with a group of 27 people, to take a tour of some facilities and learn more about our good energy.
Lessons Learned
GRI (3-3) Among our lessons learned, we must highlight the implementation of sustainable sourcing and positive response from the bidding suppliers that participate in the RFP (sustainable purchasing) processes this year. This shows that the majority have initiatives or some ESG program, which will allow us to work more in line with our objectives in sustainability and the development of awarded suppliers in matters that still need improvements.
Topic / Indicator | Own indicators | CSA S&P Indicator | SASB indicator | GRI indicator | TCFD | External assurance |
|---|---|---|---|---|---|---|
Local suppliers | C-AS1 | 1.7.5 | – | 2-6, 204-1 | – | |
Risk management – Significant suppliers | – | 1.7.5 | – | – | – | |
Risk management – Suppliers with high sustainability risk | – | 1.7.6 | – | 414-2, 409-1, 408-1, 407-1, 308-2 | – | |
Negative social impacts in the supply chain and measures taken | – | 1.7.6 | – | 414-1 | – | |
New suppliers that have passed selection filters in accordance with environmental criteria | – | – | – | 308-1 | – | |
Suppliers that have passed selection filters in accordance with ESG criteria and were evaluated as having high sustainability risks (social, environmental and economic criteria and impacts). | C-AS2 | 1.7.4 | – | – | – | |
Number of critical level 1 and non-level 1 suppliers in the reporting year | C-AS4 | 1.7.5 | – | – | – | |
Verification of the Supplier Development Plan on ESG matters | C-AS3 | 1.7.4 | – | – | – |
The Equipares Gold Seal
Which highlights companies and organizations that correctly implement the gender equality management system. They also recognized the work performed with our suppliers.
The ANDI and its Foundation, in partnership with USAID and Portafolio
Recognized us as one of the 21 inspiring companies of 2023, for the Energy in Development program, which aims to train women technologists in industrial electricity, in partnership with the SENA.
Celsia Internet
Received recognition for its contributions to connectivity, within the framework of the Meeting on Digital Transformation and Innovation in the Industry.
The “First 50” Seal for Celsia Central America
Awarded by the Ministry of the Environment, for its leadership in defining its voluntary commitment to carbon neutrality by 2050.
Strengths of the quality system in the Internal Audit, May 2023:
- Initiative in the decentralization of purchases and sustainable purchases.
- Circular economy initiatives.
ABS-QE maintains the certification of the Asset Management System for the companies Celsia Colombia and Cetsa
Effectively implemented, maintained in accordance with defined requirements and achieving its objectives.
Sustainable supply: Including environmental, social and corporate governance variables throughout the supply chain, from the conception of needs to our suppliers adopting good practices.
ESG: Environmental, social and corporate governance matters.
Development for suppliers: Programs or initiatives, selection criteria for suppliers of goods, services and contractors, continuous improvement and strengthening of the topics that make up the organizational structure of this stakeholder, aligned with the engagement and management strategies, and sustainable supply.
Purchasing decentralization: An initiative to provide faster purchasing requirements: direct, plural (applies to certain teams) and recurring.
Circular economy: new designs and business models, new products and services, and the optimization of resources to get the most out of our business.
Maturity model: The degree to which a company, team or area assimilates or integrates good practices regarding the management of various programs or projects. It includes factors such as measuring tools and evaluation criteria.
Significant suppliers: Those with invoicing of greater than COP 10,000,000,000, an operating distribution contract (COD, for the Spanish original), with some type of dependency and with ESG risks.
RFP: Request for Proposal.
YEC: A program created by Celsia in OHS matters for suppliers and employees, to internalize safety as a non-negotiable value and implement safe practices.
ML/TF: Money laundering and terrorist financing.
