Social risk management Social risk management

Social risk management

Social risk management

In compliance with our Social Management Policy and in accordance with international standards, we identify and evaluate the social risks that may be generated by our operations and activities to propose management measures in the Annual Community Relations Plans, which must be approved by General Management.

During 2022 there have been various situations of escalation of social tensions; however, through dialogue and the generation of consensus with social actors, carried out by the team of community relations supervisors in the different operations, we achieved the transformation of these events, channeling the expectations of local actors and encouraging the participation of the State sectors to reduce the effects on the company’s operational activities.

Social conflicts (comparative 2021-2022)

 20212022
Number of social conflicts5956
Number of social conflicts managed5136

Source: Sustainable Development Corporate Management.

To date, of the total conflicts in the environment of our operations, only 20 cases are in the process of management. Therefore, we managed to promote the consensual transformation of 36 disputes thanks to the strategies deployed, which have allowed us to move forward with the implementation of preventive measures in response to previous problematic situations before their escalation.

North Peruvian Pipeline (ONP)

  • In compliance with our procedures and guidelines for community relations, we continue to accompany the execution of operational activities, such as maintenance and contingency management, and we emphasize the following actions:
    • Coordination with a permanent intercultural approach with community authorities and local population for the entry and execution of tasks.
    • Accompaniment to operations and contractors in the management of employment and local suppliers.
    • Monitoring of contractors’ compliance with social management procedures.
    • Attention to complaints and claims.
  • We deploy strategies for the dissemination of information, dialogue and continuous relations with the population, community authorities, indigenous organizations and local institutions, in a timely and culturally appropriate manner.
  • We managed to make operations viable in 15 of the 17 contingencies registered during 2022.
  • We maintained our Local Labor Non-hire Policy for remediation work.

Talara Refinery

  • At the end of 2022, the labor force amounted to 2553 jobs: 96.7% was local unskilled labor (out of a total of 340), and the skilled labor force was 2213.
  • We obtained the revalidation of the certification of Compliance with the Equator Principles and Performance Standards of the IFC (International Finance Corporation), an institution belonging to the World Bank. This was possible thanks to the adequate implementation and compliance with the aforementioned standards, which allows mitigating the risk of generating reputational damage as a result of non-compliance with environmental and social legislation.

Our relationship actions with the population and local authorities are aimed at efficiently managing critical issues and generating favourable conditions for establishing dialogue and consensus, in order to generate shared value for the company and its stakeholders.