Supplier Management System
In 2020, Halliburton implemented a new supply chain management system – SAP Ariba Supplier Management – to improve overall automation in the procurement process, significantly increase our ability to assess ESG risks, and measure compliance within our supply chain.
The new system provides improved visibility on the performance of our suppliers in key areas, such as human rights, local content, environmental processes, carbon emissions and water sustainability. This system automatically enables more detailed assessments of suppliers based in countries designated as high risk for human rights issues, and enables us to capture information on supplier diversity on a global basis.
Our Supplier Conduct and Responsible Procurement Sustainability Commitment:
- Cultivate a sustainable supply chain through the continuous improvement of internal processes, performing proactive risk assessments and by working collaboratively with our diverse mix of local and global suppliers.
Evaluation, Training and Compliance
Halliburton is committed to ensuring that our suppliers comply with all applicable employment, labor and human rights laws. Our supplier expectations are clearly stated in our Supplier Ethics Statement and Supplier Ethics Letter; both can be found on the Supplier Relations section of our website.
During the onboarding process, Halliburton requires 100 percent of potential suppliers to undergo a risk evaluation process that covers environmental and social criteria, export controls and sanctions screening, as well as insurance verifications and safety training for onsite vendors.
We perform due diligence checks on all international non-commercial agents, such as customs brokers, freight forwarders, and immigration and visa agents. We evaluate critical suppliers annually on risks related to human rights, safety, quality, environment, economics, governance and corporate citizenship. Noncompliance with Halliburton standards, such as poor performance, unethical business practices and acts of corruption can lead to appropriate response actions up to and including termination of the relationship.
All employees of companies in our supply chain with access to Halliburton systems must complete training related to our COBC every two years. Training is also provided on topics including HSE standards, human rights and conflict mineral compliance. All European employees of our Procurement team must complete Ethical Procurement and Supply training from the Chartered Institute of Procurement & Supply, a globally recognized not-for-profit organization. This training enhances our employees’ ability to identify signs of human trafficking and forced labor, and to prevent other issues related to human rights abuses.
Our IAS group works with the Supply Chain division and our Global Ethics and Compliance group to conduct regular audits of our global supply chain to ensure compliance with COBC training and other key metrics. Audit findings, trends and insights are reported within the organization and to the Board committees as applicable.
We establish and foster relationships with local suppliers who can provide Halliburton with strategic and competitive advantages for our operations, while expanding the capacity and competency of national and local industry suppliers. Halliburton shapes local sourcing efforts to the specific governmental, cultural and economic needs of
We are committed to our local communities, which is illustrated in part by our high rate of local supplier procurement spend in the countries where we operate. In 2020, more than 84 percent of spend was with suppliers located within the region where we operate. Using local suppliers helped us achieve minimal disruption to our supply chain following the emergence of the COVID-19 pandemic.
Halliburton is a member of the Responsible Minerals Initiative and complies with the conflict minerals provisions in Section 1502 of the U.S. Dodd-Frank Act. As part of our commitment to ensuring that minerals are sourced in an ethical manner, our suppliers must provide Democratic Republic of the Congo (DRC) conflict-free materials to Halliburton, furnish information to assist in determining that the materials are DRC conflict-free, and respond to requests for information on supply sources. In 2020, a total of 2,447 suppliers were identified as in-scope and contacted as part of the Conflict Minerals campaign. Halliburton terminated relationships with suppliers who did not cooperate with our Dodd-Frank compliance requirements.
Modern Slavery and Human Trafficking
Halliburton performs due diligence on suppliers with respect to modern slavery and human trafficking. We require suppliers to contractually commit to protect and uphold the fundamental human rights of their employees as stated in the United Nations’ Universal Declaration of Human Rights.
Our supplier evaluation process includes an assessment of our suppliers’ policies and procedures regarding forced labor and human trafficking, wage deductions, and timely and accurate payment of wages for all workers. To ensure compliance, we conduct an evaluation of our highest-spend suppliers on an annual basis. We also perform an annual Slavery Risk Analysis that takes several different risk factors into consideration, including percentage of slavery in the country, vulnerability to slavery, and government response to slavery.
As part of our compliance with the UK’s Modern Slavery Act 2015, Halliburton previously issued questionnaires to over 1,100 existing suppliers and all new suppliers. This process assigns each supplier a risk level based on an evaluation of their questionnaire responses and other relevant data points.
In addition, over 90 percent of European Procurement employees have completed a training course that enhances their ability to identify signs of human trafficking and forced labor, and how to help prevent other issues related to human rights abuses. In the UK, our suppliers must complete a questionnaire to confirm their awareness of the UK’s Modern Slavery Act 2015 and to describe the controls in place to comply with the Modern Slavery Act 2015 within their businesses and supply chains.
Halliburton is a member of the Oil & Gas Trafficking Awareness Group (OGTAG), with our Global Sustainability Manager on OGTAG’s advisory board, demonstrating our commitment to preventing human trafficking in our supply chain and in the communities in which we operate.
Our new Supply Chain management system provides Halliburton with enhanced capabilities to identify and address modern slavery risks.