At Ovintiv, we take an integrated multi-basin approach to supply chain management. Our supply management team is woven into all levels of our organization, from corporate operations to our field teams.
We work hard to build transparent, long-term relationships with our suppliers to create a competitive environment that drives innovation. We want to know who we are working with and how they run their organization. This often means being on the ground in the field, touring their shops and looking for opportunities to spur innovation. We also recognize the importance of supporting the communities and businesses in our operating areas to ensure there is a local presence and, in some cases, to foster new investment.
From an operational perspective, we are committed to ensuring our suppliers share our high safety standards. We maintain a Supplier Code of Conduct as well as a Service Provider EH&S Expectations Manual that aligns with our Business Code of Conduct and sets forth our expectations both from a business perspective as well as on important social issues, such as human rights. Suppliers must maintain integrity, transparency and compliance in all that they do.
Ovintiv’s Supply Chain Management team is committed to furthering environment, social and governance progress. We have developed an internal dashboard that helps track new technology being piloted by suppliers, identify ways we can minimize our environmental footprint and integrate social considerations into our sourcing selection process. For example, Ovintiv utilizes production casing sourced from Vallourec’s manufacturing facilities in Ohio that are powered by 100% low carbon electricity. By selectively sourcing tubular products from this supplier, Ovintiv was able to avoid more than 16,000 metric tons of CO2 emissions in 2021.
Understanding our Supply Chain
In the face of post-pandemic supply chain disruptions and increasing geopolitical uncertainties across the world, our Supply Management team has embraced our value of agility by proactively identifying and mitigating risks to our procurement of necessary goods and services. This includes engaging with category managers and key suppliers to capture their insights about current and potential disruptions to Ovintiv’s supply chain as well as gathering and integrating known trade barriers or restrictions on tariffs into our analysis and decision-making.
In the spirit of innovation, we created our Global Supply Dashboard. It provides a high-level snapshot of the location of our main suppliers and any associated risks or barriers to trade. This enables us to identify and mitigate potential supply disruptions, decreasing exposure for both Ovintiv and our suppliers to the ever-changing global supply chain.
Setting Expectations for Safety
Our safety leadership is of utmost importance, so once a supplier has been approved for work, we routinely monitor performance to ensure our high expectations and safety standards are met. We engage with our suppliers through:
Annual Service Provider Excellence meetings with over 150 suppliers to discuss EH&S expectations, perform lookbacks on incidents and ask for feedback
Quarterly EH&S Key Performance Indicator (KPI) reviews to ensure suppliers are continuing to meet our EH&S standards with regards to quality, operability and reliability
Monthly engagement to discuss ongoing EH&S efforts
Routine audits to evaluate process safety practices to make sure they are appropriately managing risks to prevent catastrophic failures
Pre-project orientations to check equipment, brief crews on Ovintiv’s Service Provider EH&S Expectations manual and ensure crews have required training
In addition to tracking these assessments to maintain a performance history on our suppliers, we use ISNetworld to further evaluate supplier safety programs and performance. ISNetworld allows Ovintiv to verify that our suppliers have acknowledged and adopted the required EH&S procedures before starting work.
Partnering to Prevent Human Trafficking
Ovintiv is a sponsor of Truckers Against Trafficking (TAT), an organization that works to disrupt human trafficking networks by asking truck drivers to look for and report signs of human trafficking. Truckers are the eyes and ears of our roads, driving on highways that often act as transportation paths for traffickers.
With operations across North America, we are in a unique position to positively drive change. Our relationships with our suppliers provide a platform to raise awareness about this issue and encourage our partners to support TAT’s efforts to combat human trafficking.