In accordance with our strategic objective of making the areas of influence where we operate competitive territories, the Company continued to work on the implementation of a strategy focused on generating local economic development, consolidating a diversified local Company system that generates revenue and employment for the territory, and creates viable, profitable and sustainable companies in the long-term. This development arises from two perspectives: the promotion of corporate initiatives, through the Local Supplier Development Program which supports the creation and strengthening of local companies that provide goods and services to our value chain through the technical assistance and creation of capacity on administrative, financial, productive and operational issues, and implementation of productive projects that allow communities to have other sources of revenue.
During 2017, we implemented 23 projects in the Orocué, Tauramena, Monterrey, San Luis de Palenque, Trinidad, Maní (Casanare) Puerto Gaitán y Cabuyaro (Meta) and San Pedro and Los Palmitos (Sucre) municipalities, benefiting close to 38,000 people.
With the objective of strengthening agricultural activity at the municipalities, we supplied a Machinery Bank, supporting the Municipality of San Pedro, Sucre. With the supply of this bank, the people have access to equipment to plow their lands, strengthening and returning to their true vocation.
In the same manner, we strengthened the level III dressmaking M.E.G (Mujeres Emprendedoras de Guarupay- “Entrepreneurial Women of Guarupay”) project at the San Miguel de Guarupay village, municipality of Cabuyaro, Meta, through the delivery of sewing machines, training in design and decoration in high fashion, and other elements that strengthen this activity.
As a result, M.E.G. now makes clothing for clients from different companies in the hydrocarbons sector that are connected to the municipality of Cabuyaro, Meta, and for clients that bring their patterns or that choose them from a magazine or catalogue. With the execution of this project, 14 vulnerable women, victims of armed conflict in the local community council were benefited.
We also promoted productive projects that diversify the communities reliance on the oil industry activities such as sustainable rural production programs that deliver basic elements adapted to the productive conditions of the families’ lands, thereby seeking to improve family revenues. In the La Embajada local community council, municipality of Cabuyaro, Meta, we strengthened the productive cores of 40 families (100% of the village), through the delivery of chickens, pigs, multicultural and livestock material.
At the La Culebra local community council, municipality of Orocué, Casanare, we strengthened the poultry cores through delivery of 725 laying chickens to 25 families (100% of the village), thereby enhancing the poultry activities, promoting activities different from the hydrocarbons industry and generating another source of employment. Also, at the Guafal Pintado local community council, Maní, Casanare, we strengthened the poultry and pork productive cores and improved land conditions for 68 families (100% of the village), improving their daily activities and revenue.
Execution of Social Projects
During 2017, we executed 129 social projects in Colombia and Peru within the following areas:
Contracting of Local Skilled Labour
In 2017, we contracted 1,092 local individuals in Colombia for skilled work, which represents 47% of the total workforce, compared to 659 local individuals contracted in 2016, exceeding the requirements of the Decree 1668 of 2016. In Peru, we contracted 93 local individuals for skilled work, meeting our commitment to the communities.
Contracting of Local Unskilled Labour
In 2017, we contracted 3,597 local individuals in Colombia for unskilled work, compared to 1,945 in 2016, fully meeting the requirements of Decree 1668 of 2016. In Peru, we contracted 217 local individuals for skilled work, meeting our commitments to the communities.
In 2017, we purchase US$10,574,145 of local goods and services in Colombia, compared to US$8,251,633 in 2016. In Peru, we purchased US$130,979 of local goods and services. With these initiatives and the creation of consortiums between local companies and regional and national contractors, we contributed significantly to the local economic development of these communities, within a scenario of reduced extractive activity.
Management of Blockades
Due to the good relationships between our team the communities, we were able to enter into mutually beneficial agreements with local communities allowing operations to continue unaffected.
For 2017, the cost per barrel for our social investment in Colombia was US$0.09, and in Peru was US$0.93, complying with our social commitments and voluntary social investment.
Frontera’s goals and action plan to advance SDG #11 over the next 5 years is focused on productivity of the local economic fibre, development of human capital, strengthening of the social and institutional fibre, and quality infrastructure.
We will continue to structure and evaluate social project initiatives to ensure they are sustainable, measurable and have impact, comply with obligations with regulatory entities and in turn are aligned with Frontera’s corporate social investment framework.
In line with SDG #17, Partnerships for the goals, we will continue to generate strategic alliances aligned with the social investment framework and national, departmental and municipal development plans that allow for the execution of investment actions for the benefit of the communities present in our areas of operations. We will continue to position the Company through execution of emblematic projects that involve participation of other areas and stakeholders.
Continue to Generate Alliances with key government institutions, local authorities and communities to identify development projects that contribute to the regions where we operate. To help overcome poverty in Colombia (SDG #1), we will lead processes such as those included in Decree 2099 of 2016, which allowed the implementation of social projects with resources from the 1% environmental compensation and investment and the development of social projects with taxes in Colombia and Peru.
We will also Develop positive communication tools (SDG#9) that are accessible and proactive and have a digital focus.
Frontera is a proud member of the UN Global Compact (Canada, Colombia, and Peru). The success our sustainability initiatives and commitment to the SDGs are advanced through our partnerships with governments, communities, unions, sustainability organizations, and all of our internal and internal and external stakeholders. Partnerships for the goals is a key element in the advancement of all SDGs.
a. Aligned to the Sustainable Development Goal (SDG) # 5 “Gender Equality”, Frontera works with the Ministry of Labor and the Colombian Presidential Council for the Equity of Women, with the support of the United Nations Development Program, attending to its functions as equal mechanism of the Certification Program of Equal Employment “EQUIPARES”.
b. Aligned to the Sustainable Development Goal # 17 “Partnerships to achieve the goals”, Frontera potentiates social investment in public-private partnerships (Municipalities Halls, Departmental Government , Colombian family welfare institute (ICBF), Ministries, Universidad del Norte, Caribbean University Corporation, Presidency of the Republic, National Federation of Cattlemen (FEDEGAN), Business for Peace , GRI, others) to maximize the impact and generate sustainable projects.
Frontera communicates and measures our impact towards the SDGs through our annual sustainability report. Our report is structured using the Global Reporting Initiative Disclosure Index (“GRI”), with an external independent audit of the report by KPMG.
We communicate our social investments and SDG commitments externally through social media, our website, and sustainability focused events, as well as internally through our communications platform ‘Frontera Digital’, where we engage with employees on working towards our goals together.