Report Sustainability 2019 · 2020. 9. 11. · Sustainability Report 2019 tChapter 1 - Our...

Sustainability Report 2019

1

Report 2019

Sustainability

ACKNOWLEDGEMENTS

This report had the active participation of all areas in the organization.Management Colombia - Peru Reinaldo Rodríguez

Human Resources and Social Responsibility Management Mario Ardila Sarmiento

Preparation of the report: Andrea Gómez B.Yenny Romero S.

Style Layout:Communications Team Masa and Stork

Photographs:Image Bank Masa and Stork

ABOUT THIS REPORT

Masa and Stork presents its third sustainability report, gathering our administration from January 1 to December 31, 2019. This report has been prepared pursuant to the Global Reporting Initiative – GRI standards, it is not externally verified and the information reported refers to the oil & gas, mining, energy and agricultural sectors of our operations in Colombia.

In order to ensure the accuracy of the material aspects and methodological guidelines, this report was validated by Colom-bia Peru Management and the Strategic Committee.

The report presents the management and performance in economic, social, environmental and other topics deemed funda-mental for the relationship with our stakeholders. With this report, Masa and Stork renders account and provides a tour that allows understanding and learning about our administration.


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CONTENT:

01 MASA AND

STORK Page 12

02 SUSTAINABLE

GROWTHPage 34

03SOCIAL

STRENGTHENING Page 54

04ENVIRONMENTAL

FOOTPRINTPage 82

05TABLE OF

CONTENTS GRI Page 96


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We are facing difficult times that challenge us each day to be more innovative by creating opportunities in the midst of the crisis; likewise, situations like the one we are living invite us to reflect on our purpose and performance both individually and at an organization level. In this sense, sus-tainability reports are a valuable tool for analyzing and as-sessing our role as an organization to be able to go beyond the mere rendering of our services, generating true value for our stakeholders.

Welcome to Masa and Stork:

In 2019, along with safety, we achieved all the goals proposed to continue positioning ourselves as one of the most outstand-ing regions of Stork worldwide.

We achieved important objectives proposed for the year, in addition to commercial and financial goals, including the implementation of the DMS, the RUC certification and the implementation of our first clusters. On the other hand, US$7.36 million in savings were reported, generating effi-ciencies in different processes, thanks to the correct man-agement of operations and the supply chain we are currently working on.

Our leader team began to grow with the program ILEAD that prepares the leaders required by Masa and Stork to build the future. Likewise, we are strengthening our wel-fare strategies and benefits to provide our employees the acknowledgement they deserve for their work with passion and dedication. Our team is the Company’s main asset and

Reinaldo RodríguezColombia and Peru

Director

MESSAGE FROMTHE DIRECTOR

for that reason we are increasingly focusing on their care, growth and promotion.

Safety is the company’s main value, promoting the actions of each worker, every day and everywhere. And that is what we seek through “LISTO, Más allá de cero,” raising awareness and a culture of safety.

This year, in the Latam Region, we received more than 200 nomi-nations in the 4 categories of the annual safety awards. This shows how Masa and Stork employees have safety embedded in their DNA and they live it daily as main inspiration in everything they do.

Likewise, and aligned with the culture of Connecting and Collab-orating being promoted by our parent company worldwide, the knowledge management platform Knowledge Online (KOL) was launched this year in order to share experiences and ask for help from Stork employees anywhere around the world. Aligned with this initiative, organization experts worldwide were also appoint-ed (SMEs), including eighteen Colombians and seven women.

On the other hand, concerning the relationship with the union, the year closed on a positive note with the renewal of the collec-tive bargaining agreements with the unions USO, Sintramasa and Sintramace, privileging dialogue as the only way to settle conflicts and achieve agreements that allows us to continue to be sustainable, competitive and achieve benefits for all parties.

In conclusion, 2019 was a year with excellent achievements at a national level that positioned the company in a very important place before all stakeholders.

“2019 was a year with

excellent achievements at a national level that positioned

the company in a very

important place before all the stakeholders.”

Employees

6.958

Negotiationof three (3)

Collective BargainingAgreements

CommercialAgreements

43

OperatingRevenue

COP 975.623M

EnvironmentalAccidents

0

OrderIntake

COP 1.305.161

Customers

16EBITDA

9.6%

Man-HoursWorked

20.443.481

Departments wherewe are presents

17Municipalities where

we are present

78

Training Hours

20.272


10 11

Our results are evidence of our commitment to excellence

OUTSTANDINGRESULTS 2019

OURChapter 1

ORGANIZATION

15

Sustainability Report 2019 • Chapter 1 - Our Organization

14

OUR ORGANIZATION

In 2007, Stork Technical Services inter-ested in expanding its presence in South America, acquired 70% interest in Masa, a Colombian company. In 2011, Stork ac-quired the remaining 30% interest in Masa and in 2016, Fluor Corporation Company acquired Stork. For further information about the history of our company, you can visit our website: www.stork.com and read the past sustainability reports.

Today, Masa and Stork is recognized by our customers as a strategic ally for the operation and maintenance of its assets.

In the territories where we are present, the communities, governments and lo-cal providers support our transparent management and value creation. Our employees are proud of belonging to this great company that provides them opportunities for their personal and pro-fessional development.

During 2019, there were no significant changes in the capital structure, share-holding structure, or new associations substantially affecting or modifying the organization and its stakeholders.

OUR PURPOSE

We are an organization that is well connected, informed, diversified and based on data in order to continuously improve the performance of our customers and establish standards of excellence.

The combinationof Fluor and Stork is

specially positioned toprovide integrated solutions

that cover the entire lifecycle of the assets that add

value to the business, bystrengthening the

competitive positionof our customers.

Masa and Stork is recognized by our customers as a strategic

ally for the operation and

maintenance of their assets.

Founded in 1912,it is a global engineering,

acquisition, manufacturing,construction and maintenance

company that designs, builds and keepscapital e�cient facilities for its customers

in six continents. For more than a century, Fluorhas provided services to its customers when o�ering

innovative and integrated solutions around theworld. Based on Irving, Texas, Fluor ranks 149th in

the FORTUNE 500* list with revenues of USD19.2 trillion as of December 31, 2018

with more than 56,000 employeesaround the world.

Founded in 1827, it has widerecognition around the world and broad

experience in the comprehensive managementof assets in sectors such as energy,transportation and petrochemical.

Likewise, it diversi�ed its businessesby getting involved in aerospace activities,

technical services for the maintenanceof facilities in the industry and

construction sectors.

Founded in 1983 in Huila,Mecanicos Asociados

was born to provide maintenanceservices in the pumping station DINA,

Puerto Salgar and Campo Tello.Having an important track record,

Masa is consolidated in thecountry in the mining and

hydrocarbon sectors.

Fluor owns100% of Stork

Stork owns100% of Masa

WHO WE ARE

We are a company with a high trackrecord, credibility and national andinternational support.

We quickly react to the operationalneeds of our customers worldwide.

We are �exible, proactive and provideintelligent solutions for the long term.

We behave in accordance with thehighest ethical standards.

Our actions are consistent withour values and principles

The current and future wellbeingof people are very important

to us, regardingour employees, customersand communities where

we work and live

We treat everyone with dignity, respectingeach other's point of view and sharingknowledge and resources to achieve

excellence, deliver value and growindividually and collectively.

We strive to deliver qualitysolutions that

are �t for purpose withunparalleled value.

Team

Work

Exce

llen

ce

Safety

Integrity

Custom

er G

uid

ance


16 17

WHAT IS IMPORTANT TO US

To “Be the benchmark of the industry, every day and everywhere,” Stork’s corporate values allow us to be one in what we believe in, in how we work, in the language we use, and in the messages we convey between ourselves and those around us.

Our transformation pillars drive us towards

an organizational structure focused on:

Inn

ova

tio

n

Lean

Exce

llen

ce

Gro

wth

19


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MaintenanceStork provides a full service customized solution for the maintenance ofindustrial facilities that improve the reliability and performance of the plant.

Plant Stoppages and ShutdownsStork manages plant stoppages or shutdowns for full services of any sizeand for any industry, including complementary personnel and (rental) equipment.

Construction and Modi�cationsStork’s integrated engineering capacities allow construction activities, fromsmall to medium, for the modi�cation of production facilities or expansionof customers’ facilities.

Manufacturing and Repair of EquipmentFrom pumps and valves to gear boxes, turbines and complete powergeneration facilities. We design, manufacture and repair both Stork originalequipment and third-party equipment, around the world.

Operations Stork’s operation services assume the operational responsibility of theproduction process and support customers, from the management of materials,manufacturing processes to packaging and shipment of products.

Business DevelopmentIt consists in the activities required for customer management and administrationof the commercial relationship of agreements under performance or projected.

WHAT WE DO

We provide concrete bene�tsto all our customers:

Reducinginactivity

Improvingsafety

Increasinge�ciency

Reducing costs

Extending theuseful life

Facilitating innovativesolutions

Maximizing returnon investment

Reducingemissions

-

+

+

-CO2

-

+

+

+

Mining

Location: Cesar y La Guajira

Customers: Drummond, Cerrejón

Oil & Gas

Location: Bolívar, Cesar, Santander, Norte de Santander, Arauca, Meta, Casanare, Antioquia, Risaralda, Valle del Cauca, Putumayo, Nariño, Caldas, Huila, Tolima

Customers: Cenit, Ecopetrol, Cepsa, Equion, Oxy, Gran Tierra Energy, Hocol, Odl, Bicentenario

Energy

Locations: Meta, Casanare, Huila

Customers: Ecopetrol, Ocensa

Re�nery and Chemicals

Location: Santander, Bolívar Customers: Re�nería de Barrancabermeja, Re�nería de Cartagena

21


20

OUR PRESENCE IN THE MARKE T

In Colombia we work with customers in

the oil & gas, refineries, chemical,

agrochemical, energy and

mining sectors.

• PROJECT 3017161 "COMPREHENSIVE SERVICE OF PRODUCTION FACILITIES AND RESPONSE TO EMERGENCIES INTHE FIELDS OF THE REGIONAL VICE-PRESIDENCY OF ECOPETROL S.A."

Recognition: For the safe actions of the torque team for optimization of the operationimplementation of depressurization valve.

Customer: ECOPETROL S.A.Recognition: Our customer highlighted the Company’s participationin SemanaSO in Rubiales Field and Sur Field.

Recognition: For the commitment during the assurance of the equipmentmaintenance activities in Rubiales Field Coordination and Injection.

Actively participate in the safety observance program.

Demonstrate leadership in safety talks.

Attitude to correct and implement the di�erent safety actions.

Leader in HSE, road safety, environmental protection, evidenced with facts.

Promotes HSE in its working teams, it is a visible leader in these matters.

Constantly implements initiatives tending to avoid and prevent incidents.

It is a promotor within its work team of the HSE policies.

• CEPSA PROJECT

• Rubiales Field

Ecopetrol held the Semanazo 2019, during which a group of 25 people from the communityparticipated in the complementary course on safety with the purpose of strengtheningeducation on this subject and generating a positive impact among the inhabitants of the region.Through this activity it was possible to certify 12 persons in comprehensive administrationof HSE in the construction sector, through the National Learning Service (SENA).

Customer: ECOPETROL S.A.

National Contractor for: being socially responsible in managing the environment.

• Teca- Cocorná FieldCustomer: ECOPETROL S.A. - OXY

CONTRACTORS AWARD 2019

Occidental de Colombia, Teca Cocorná Field recognizesMecánicos Asociados SAS:

With special mention for its outstanding performance and commitment toHSE and social responsibility during 2019.

We have been recognized for our work, receiving in 2019 the following distinctions:

ACHIEVEMENTS AND RECOGNITIONS

CONGRATULATIONSWe are proud to say that other stakeholders

recognize our work.

Coal Handlingmanagement recognizesMecánicos Asociados S.A.

1. For generating value indevelopment of tools forthe monitoring and controlof legal requirements andinternal standards applicablein critical controls.

The CerrejonMaintenanceDepartmentrecognizesMecánicosAsociados S.A.

1. For its achievementof �ve (5) years withoutrecordable accidentsin the portion of theCompressed Airagreement. 2016

The Vice-Presidency ofCerrejon Maintenancerecognizes Mecánicos Asociados S.A.

2. For its high level of commitment and performancein Safety, participating in the achievement of 3 millionman-hours without recordable injuries or high potentia incidents in the Maintenance Vice-Presidency.

3. For providing world-class support outstandingin its empowerment and leadership in generatingBacklog of failures found in the caterpillars andidentifying elements not adequate for thecomponents (door seals) that increase theirtimes between failures.

23


22

25


24

The central axis of Mecánicos Asociados (Masa) and Stork Holding B.V. Sucursal Colombia to achieve their results is the systematic handling of quality management, safety and occupational health, the environment and process safety, having world-class performance principles that support our certi-fications, accreditations and stamps granted by internationally recognized organizations.

CERTIFICATIONS, ACCREDITATIONS AND STAMPS

Masa & Stork has Corporate Governance aligned with the values, principles and corporate objectives ad-dressed to facilitate compliance with the strategy, the goals proposed and the applicable legal standards, going beyond the expected results. This system meets the set of standards, policies and good practices, un-

der which the managers, leaders, coordinators and em-ployees relate to the stakeholders, in order to maintain credibility and trust.

The governance bodies in charge of leading the enforce-ment of corporate governance are:

CORPORATE GOVERNANCE

OHSAS 18001: 2007:Occupational Health

and SafetyManagement

System

Certi�cations

Accreditations

Stamps

ISO 9001: 2015:Quality Management

System

ISO 14001: 2015:EnvironmentalManagement

System

ISO/IEC 17025:2005:Evaluation in accordance with its calibration laboratory

NATIONALBOARD (NR) R

ASME U ASME S NATIONALBOARD (NB)

Our Board of Directors, whose main members are located in the Netherlands, includes representatives of the shareholders who constitute the highest authority of Corporate Governance in each and every one of the Com-pany’s affairs.

Shareholders Assembly

Board of Directors

Colombia and PeruDirector

MAIN MEMBERS ALTERNATE MEMBERSTaco de Haan Alejandro Escalona

Sandeep Sharma Reinaldo RodríguezPatric Jansen Camilo González


26 27

Currently, the referred organ is composed as shown below:

During 2019, Jorge Estada left and his position on the Board of Directors was filled by Alejandro Escalona, this being the only change in the Board of Directors during 2019.

Regarding the organization structure, during 2019 there were changes in the Supply Chain Management and HSE Management, which scope was Colombia and Peru and they became LATAM Directors, responding to the strategic assurance of the business in the Region.

In addition to the Board of Directors, where the main business decisions of the company are made, the following management committees exist:

• LATAMREACHSTEERINGCOMMITTEE• STRATEGICTEAMCOMMITTEE• LATAMPRMFINANCIALCOMMITTEE

RegionalRepresentative

of LATAMRisks

Legal Director ICT LATAMDirector

Colombia PeruDirector

HSEQ Manager HumanResourcesand Social

ResposibilityManager

Operation andMaintenance

Manager

ConstructionProject

Manager

SafetyManager

FinancialDirectorLATAM

Regional Director of

BusinessDevelopment

Group Management TeamNetherlands

VP LATAMAlejandro Escalona

Reinaldo Rodríguez

Mario Ardila

Luis Medina

Alirio UribeAstrid Campo

Catherine SosaPedro Novoa

Holger Camacho Luis GonzálezEdgar Alvarado

PSCMManager

Rubby Vidal

Camilo González


2928

At Masa and Stork, we base our stakeholder relationship model on a constant, open and participatory process of dialogue to achieve long-term relationships based on credibil-ity, respect, justice, trust and mutual benefit.

In 2019, we updated our relationship process, which allowed us to update the value promise with each of our stakeholders for corporate management. In order to strength-en the Social Responsibility management of our organization, we start from:

The prioritization of our stakeholders allows us to understand the needs and impacts caused on those who become our neighbors of the operation to efficiently manage their needs before our company. Below we list our stakeholders and the value promise that as a company we have assumed in the framework of a relationship of mutual benefit.

SUSTAINABILITY STRATEGY OF MASA AND STORK

Identification and prioritization of Stakeholders

Permanent understanding anddialogue with our partners.

Evaluation and feedback of the relationships

ORGANIZATION’S COMMITMENT TO STAKEHOLDERS

We generate economic valuein an environment of trust,

growing with protability, applyingthe best Corporate Governance

practices and adequately managing risks.

RelationshipChannels:

SHAREHOLDERS

• Representation in the Corporate Governance bodies• Meetings

Meet our customers’ needs andexpectations by becoming a partner

and strategic ally for life.


CUSTOMERS

• Satisfaction measurement system• Commercial network

We contribute to the strengtheningof spaces for dialogue that favor

the business objectives, as well asthe local and national needs.


GOVERNMENTAND SOCIETY

• Participation in regional meetings• Attendance to meetings and control requests

We ensure the right to freedom ofassociation of all our employees,

always looking for an openand constructive dialogue


UNION

• Periodic monitoring meetings• Ethics Line

We recognize and respect cultural,political, economic and social diversity

of the territories and communities wherewe work, looking to generatemutual benet relationships


COMMUNITIESAND CIVIL SOCIETY

• Periodic meetings• Customer service o�ces• PQRFS channel• EmailWe look for the

strengthening and alignmentin responsibility issues


PROVIDERS

• Providers Portal• Ethics Line

We promote the personal andprofessional development ofemployees through a balance

between work and family life, in safeand inclusive work environments.


EMPLOYEESAND FAMILY

• Ethics Line• Intranet, email, direct communication• PQRSF Channel• Coexistence Committee • JOHSC


30 31

Starting from the results ob-tained with the measurement of the stakeholders’ expec-tations, we made an analysis around the strategy of Masa and Stork and our business objectives taking into account that the Company can only manage the issues that are directly related to the impacts of our work.

The material issues of Masa and Stork are listed below:

In order to determine the content of this report, in 2019 we made a diagnosis of the Social Responsibility model of the organization with respect to the relevant and priority issues of the stakeholders, the Stork and Fluor policies, international standards, global risks, our customer needs and trends in the market sectors where we are present.

MATERIALITY ANALYSIS

We selected the followingstakeholders:

Bogotá

La Guajira

Huila Meta

Casanare

MagdalenaMedio

We identi�ed theregions whereour operationshave moreimpact:

• Employees

• Customers • CommunitiesAnd Civil Society

• LocalAuthorities

• LocalProviders

• Union

This exercise resulted in the identi�cationof more than 74 important aspectsfor stakeholders.

We conducted103 interviews101 surveys

PRIORITIZATION:We prioritize and align the expectations of stakeholders with 5 strategic lines for the organization

Strategic and corporateobjectives alignmentReputational consolidation Risk mitigationOperating continuityImpact on the SDGs

on a scale of 1-5, which alloweddetermining the 21 materialsubjects to be managedby Masa and Stork.

They wereRATED

VALIDATION: After prioritization, the material issues were taken to the Steering Committee for their review and approval.


Bogotá

La Guajira

Huila Meta

Casanare

MagdalenaMedio


• Employees



• LocalProviders

• Union






They wereRATED



Bogotá

La Guajira

Huila Meta

Casanare

MagdalenaMedio


• Employees



• LocalProviders

• Union






They wereRATED



32 33

MATERIALITY CATEGORY MATERIAL ISSUES COVERAGE OF THE MATERIAL ISSUE SUSTAINABLE DEVELOPMENT GOALS AFFECTED

FINANCIAL

FINANCIALPERFORMANCE

Financial strategy and performance INTERNAL

Risk Management INTERNAL

Operational Excellence INTERNAL / EXTERNAL

STRATEGIC SUPPLY Participation of local markets EXTERNAL

SOCIAL

Occupational Health and Safety

PEOPLE (Culture of self-care and safe behavior) INTERNAL

PROCESSES (Process Safety) EXTERNAL

FACILITIES (Safe working spaces) EXTERNAL

ETHICS AND TRANS-PARENCY

Culture of ethics, integrity and compliance (People) INTERNAL / EXTERNAL

Anti-corruption (providers) INTERNAL / EXTERNAL

EMPLOYEES AND WORKPLACES

Employability (Stability) INTERNAL

Growth and development INTERNAL

Wellbeing INTERNAL

Union Relations EXTERNAL

Equity, inclusion and diversity INTERNAL

COMMUNITIES

Citizen participation INTERNAL / EXTERNAL

Social initiatives (Improvement of skills, social infrastructure, solidarityactions and education) EXTERNAL

Relations with the surroundings EXTERNAL

Human Rights INTERNAL / EXTERNAL

MOL Prioritization and Contracting EXTERNAL

ENVIRONMENTALPROTECTION AND

CARE FOR THEENVIRONMENT

Actions on climate change INTERNAL / EXTERNAL

Protection and care of the environment INTERNAL / EXTERNAL

SUSTAINABLEChapter 2

GROWTH

Sustainability Report 2019 • Chapter 2 - Sustainable Growth

36 37

ECONOMICPERFORMANCEStork’s global ambition is to be “the industry benchmark, every day, everywhere,” and 2019 has shown how to be-come one in the Colombian market. By presenting our cus-tomers with a wide range of integrated and innovative solu-tions, maintaining high levels of quality and always focusing on the optimization of resourc-es, we have achieved a constant improvement of our financial indicators and became strate-gic partners in the growth of our customers.

The financial strategy behind the 2019 results is based on five premises (the five “c’s”):

After a period of transition and adaptation to the new market conditions in recent years, Stork Colombia was able to optimize its

operational results during 2019 while maintaining its market share. This is reflected in a stable income level compared to 2018 (COP

975.623B in 2019 vs COP 974.962B in 2018), but generating a net result of 4.4% in 2019, compared to 0.8% in 2018.

PILL

ARS

5 C’s of �nance

CONSISTENCY AND TIMELINESS

CASH ASAPPROACH

Optimization ofthe processes

of accountspayable and

accounts receivable,which allowedstrengthening

the cash positionof the company.

PEOPLE

PROCESSES SYSTEMS

REPORTS

COMMITMENT ANDVALUE ADDED

Synergies andoptimization of

structures with the“regionalization”

of severalinternal processes,

allowing thestandardization

at a corporate level.

COMPLIANCEAND CONTROL

Timeliness andconsistency inmanagement

information thatfacilitates the correct

decision-makingprocess.

MINIMUMCOMPLEXITY

Implementationof new

managementsystems

(SAPbyDesign)

Optimizing ourbalance, byimproving thecompany’s cashposition anddecreasingleverage levels

Diversi�cation ofour portfolio

Increasingparticipation inmining andopening new marketslocally and regionally


3938

Among the main actions carried out by the organization to achieve these excellent results, we have:

2019 marked an important milestone, given the expiration of two of the company’s main agreements, which were suc-cessfully replaced by new agreements of the same magnitude, allowing us to continue with a strengthened agreement backlog that ensures stable income generation for the years to come.

This renewal of agreements led to an increased investment in assets and materials for its start-up, generating increases in the levels of debt and financial cost for the organization. However, Stork managed to keep its indebtedness levels (Total liability / Total asset) below 75%.

The results of our financial performance for 2019 are as follows:

2020CHALLENGE

2020 presents new chal-lenges for the organization, which include the volatili-ty of oil prices as one of the main challenges to face. For this, Stork wants to focus the 2020 efforts on:

MASA STORK TOTALCOLOMBIA

FINANCIAL KPI’s 2018

Operating Income 868.164 106.798 974.962

Order Intake 1.262.607 372.970 1.635.577

Operating Margin 4,8% -5% 3,8%

EBITDA Margin 7,2% -4.8% 5,9%

Net Margin 1,2% -2.4% 0,8%

% of Indebtedness 74,3% 55,8% 72,3%

Debt / EBITDA 5,69x -6,38x 6,77x


2019

825.487 150.136 975.623

1.199.162 105.999 1.305.161

8,9% -2,2% 7,2%

11,7% -2.0% 9,6%

4,5% 3,9% 4,4%

75,6% 62,7% 73,6%

4,07x -20,03x 4,83x


DISTRIBUTED ECO-NOMIC VALUE 2018

Wages and fringe benefits 472.035 74.421 546.456

Payment of financial interests 14.788 967 15.755

Payment of taxes 16.896 943 17.839


2019

420.894 97.997 518.891

18.410 1.645 20.054

3.913 4.808 8.720

*MASA includes results from local consortia and participation in Peru. Figures in Million Colombian Pesos - COP

Implementation oflean processes, whichallowed us to reach arecord year inoperational margins,with an EBITDA of9.6% (compared to5.9% in 2018)

Continue with thetimely monitoringof operational costcontrol, protectingour margins, aprogram initiatedin 2018

Optimization ofresources andimplementationof synergies


40 41

RISK MANAGEMENTRisk management is an integral part of our company and its main objective is to protect the business profitabili-ty and generate conscious growth by supporting excel-lence and generating innovative mitigation strategies for the organization.

For Masa and Stork, risk management is fundamental, as it supports the consolidation of strategic alignment through the Risk Appetite Policy. Over the years, we have managed to identify and secure the strategic risks that affect sustainability of the organization and its projects to generate:

Mitigation actions of thedetected risks

Business andoperational continuity

Reputationconsolidation

In 2019, we focused on

the first two, giving greater

importance and level to the process,

supporting the decision-making

process in key proposals for the

organization.

We classify threetypes of risks:

- Strategic risks and/orbusiness risks.- Project risks.

- Process risks.

2020 CHALLENGE


42 43

The risk process has evolved within its three fundamental objectives:

This provides a new level of risk management process, challenging us to meet new objectives:

•Business continuity.

•Risk management as part of operational excellence

• Conduct quality analyses that serve as early warnings for the organization.

• Encourage a risk mentality among the members of the organization. In 2019 we substantially improved the actions of mitigation, having applicable and achievable action plans with a real im-pact on the projects. In addition, the assurance of the performance, profitability improvement and assurance of people’s safety standards were achieved.

Contribute morein the searchof FLUOR´S MINDSET.

Continue toidentify risks inprocess areas tocomplementoperational risks.

Detect mitigationactions applicable

within the operation. Greatermanagementinvolvement tostrengthen the riskmanagementculture throughoutthe organization.

Control thecontingency

of risks withinthe operations.

SupportCoordinationCompliance


44 45

In 2019, PSCM fulfilled its objectives

We provided transparency in our competitive processes through Intelcost’s virtual offers tool, increasing competitive processes by more than 300% compared to 2018.

We strengthened our collaborative relationships with our main contractors establishing framework agreements and through regional meetings with providers.

We implemented innovative technologies such as RFID in 30% of our tools.

We implemented the demand planning strategy for CENIT’s CIM Stations, trying to maintain a balance between an optimal level of inventory and the availability of materials to meet O&M

requirements.

We continued to work on the decentralization of our activity through the creation of solution centers (Stork@clientsites); we have consolidated and implemented our center of operations in

the South West zone located in Manizales, and in the Central Zone in the city of Barrancabermeja. These solution centers have the objective of providing services and solutions in sites near the projects/bases of our customers, to improve response times and ensure the development of

sustainable relationships with the environment.

MASA AND STORK MÁS LOCAL

In our approach to further de-velop and empower our local providers and as part of the economic development of the Barrancabermeja region, we held the first provider meet-ing entitled “Masa and Stork más local”.

This event, which was sup-ported by the Barrancaber-meja Chamber of Commerce, focused on strengthening our current providers and identi-fying potential new providers. In this way, the organization strengthens the focus on sus-tainability, participation and integration of the supply chain.

50

Totalpreregisteredparticipants

183 83

Totalbusinessconferenceparticipantsand newproviders

Totalprovidersparticipatingat the discussionsession

From the meeting we can highlight the consolidation of trust between the company and providers and the identification of new business opportunities,

of which two have already materialized.

Decrease of2,9%

Gasto anual con terceros

Year 2018$404.544

billions pesos

Year 2019$393.159

billions pesos

During 2019, annual expen-diture with third parties amounted to $393.159 bil-lion pesos with a decrease of 2.9% compared to the pre-vious year 2018 ($ 404.544 billion pesos), savings asso-ciated to the cost efficiencies incorporated through the process of provision of goods and services.

STRATEGIC SOURCING

We have participants from different sectors of the economy: Metalworking industry, rental of machinery, tools and equipment, cargo and passenger transportation, hardware shops, external workshops, Personal Protection Equipment (PPE), electrical, specialized technical services, food and other important general ser-

vices in the industry.

East$120.277

North$25.745

Center$116.247

West$48.021

South$11.832

Administration$33.279

Transversal$37.759

Contracting of Goods and Services by Areas

Amounts in billion pesos


4746

As part of our commitment to our areas of influence, during 2019 we engaged more than 200 new providers, most of them belonging to the regions where we operate, strengthening support synergies and generating more strategic allies. The pur-chases of goods reached $ 138.391 billion and acquisitions of services reached $254.535 billion.

Our organization privileges the acquisition of goods and services in the regions where we operate. 28.4% of contracting was done locally, 57.2% nationally and only 14.4% was done internationally. In other words, 85.6% of the procurement of goods and services was done supporting local providers in the different regions of Colombia.

Consolidated COP (Billions) %

Goods 138.391 35,2%

Services 254.535 64,7%

Others 234 0,1%

Total 393.160 100,0%

The acquisition of goods and services for the year 2019 was distributed as follows: 91.5% of acquisitions was made for the various projects in the regions.

0

10%

20%

30%

40%

50%

60%

50.000

100.000

150.000

200.000

250.000 57,2%

28,4%

14,4%

National Local International

224.814

111.716

56.730

COP (Billions) %

5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000

Rental of equipmentCommunication services

Surveillance servicesMedical services

Repair of machinery and vehiclesAccommodation

Specialized technical servicesInsurance

Lease of propertiesConstruction services

TaxesMaterials

Cargo transportationVehicle rental

Equipment repairs

Other servicesFood services

Personnel transportationIntercompanies

Specialized technical servicesRental of machinery

Goods and Services by Type of Provider

0

10%

20%

30%

40%

50%

60%

50.000

100.000

150.000

200.000

250.000 57,2%

28,4%

14,4%

National Local International

224.814

111.716

56.730

COP (Billions) %

5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000

Rental of equipmentCommunication services

Surveillance servicesMedical services

Repair of machinery and vehiclesAccommodation

Specialized technical servicesInsurance

Lease of propertiesConstruction services

TaxesMaterials

Cargo transportationVehicle rental

Equipment repairs

Other servicesFood services

Personnel transportationIntercompanies

Specialized technical servicesRental of machinery

Main Categories of ExpenditureThe main categories of expenditure in 2019 are represented in the following graph:

During 2019, we focused on generating value in the supply chain with savings and efficien-cies of approximately COP 20 billion represent-ed in savings of COP 6 billion, avoided costs of COP 11 billion and 4 billion in operational effi-ciencies and cash generation from the sale of non-productive assets.

2020 CHALLENGESustainability Report 2019 • Chapter 2 - Sustainable Growth

4948

Green Supply ChainDuring 2019, we changed from cardboard cups

to reusable cups, thus saving 3,000 cups per month from implementation.

Inventory management

We will implement the de�ned logisticsnetwork model and ensure the inventory

management through the SAP Bydesign tool.

Development, strengtheningand management of local providers

We will develop long-term framework agreements withlocal providers that will allow us to strengthen

our collaborative relationships, meet our customers’expectations and strengthen local businesses.

Transparency and ethicsin our supply processes

Progress in the decentralizationof the supply chain and assetmanagement Stork @ClientSites

Supply chain virtualization

Tool marking

Implementation of“Green Supply” Initiatives

We will continue to promote the use of theIntelcost tool through which we will guarantee

the contracting process and compliancewith the legal requirements of our providers.

We will implement new solution centers inthe cities of Cartagena and Villavicencio,

continue with the consolidation of the centersin Manizales and Barrancabermeja and contribute

to the reduction of our carbon footprint.

We will implement the purchase plan,expediting and performance evaluation

modules through the Intelcost tool.

We will continue with the tool markingprocess to allow their proper management

through RFID and/or Bluetooth

We will identify initiativesto reduce our environmental

impact in our operations


50 51

BUSINESS CONTINUITYThe company’s business continuity focuses on guaranteeing the safety of all employees so that the activities carried out in the different environments where we operate are conducted in a safe and controlled manner, thus contributing to business continuity.

PERSONS ASSETS

OPERATIONS

PROTECTION

OPE

RATIONAL PREVENTION

TRAIN

ING

CRISIS AND CONTINUITY

RESP

ON

SIBL

E PA

RTIE

S

POLICY

VOLUNTARY PRINCIPLES

IN SAFETY AND

HU

MA

N RIG

HTS

STANDARD

PROTECTION

CONTIN

UITY

MO

NITORING

ENVIRONMENT

The operational model for Incident Manage-ment, Emergency Support, Crisis Management and Business Continuity provides support and response through teams made up of the tac-tical, operational and strategic levels. The ob-jective of the model is to identify, evaluate and adequately respond to risk situations in the en-vironment and operations, which may escalate to a crisis.

We identify and assess the risks in the environment

for control implementation.

We also encourage the

commitment of each employee to ensure their

safety: self-care culture.

CrisisManagement

TeamCMT

Netherlands

EmergencySupport and CrisisManagement Team

EMTBogotA

Emergency Response TeamERT

With the implementation of the operational model for safety and the system for crisis management and business continuity, the following achievements were accomplished during 2019:

Zero safety incidents directlya�ecting people.

Creation and disclosure of the“Emergency Support and Crisis

Management Plan” and the “EmergencySupport, Crisis Management and Business

Continuity System Handbook (SGECC)"for Colombia.

Integration of operational and supportprocesses, through the members of the

Emergency Support and CrisisManagement Team - EMT.

136 Trainings in safety andself-care carried out in

2019 at the national level.2,824 trained workers.

2018

384�ndings

2019

184�ndings

70Non-conformities

(37%)59

Observations

(32%)55

Improvementopportunities(31%)


52 53

ETHICS, INTEGRITY AND COMPLIANCEOn a global, regional and national level, integrity and ethics are part of the DNA of the entire Masa and Stork team.

Our Code of Business Conduct and Ethics is the guideline to ensure the highest standards of transparency. This Code is complemented by three corporate policies:

Thus, we ensure that we conduct our business activities in a fair and honest manner, and we interact ethically with each person involved, including our employees, customers, pro-viders, governments and communities.

Last year, in addition to the Annual Certification of Ethics, which was addressed to 100% of the company’s non-craft population, talks were held on the different compliance pol-icies for each agreement. Also, training in “US-Export Com-pliance” was carried out, addressed to the managers of each country and to the members of the teams that participate in the procurement chain and payment of services and/or goods from abroad.

During 2019, an internal communications campaign was car-ried out, with special emphasis on the gift and hospitality policy, taking advantage of the Christmas season, aimed at all workers. The topics discussed were:

Anti-corruptionand Bribe

Policy

DataProtection

Policy

Gifts andHospitality

Policy

When reports are made in our different channels about any possible infringement of our code, the corresponding investiga-tion is carried out immediately and protecting the reporting person.

During the year 2019, we received 33 reports different, which have

been investigated and closed in its entirety.

During 2019, 3 cases of possible fraud were reported, which were

investigated and closed, without evidence that the indicated facts had

occurred.

Gifts andhospitality

Bribery

Generalawareness

Con�ictof interest

Anti-corruption Con�dentialinformationprotection

Fair treatmentwith theworkers

INTERNAL AUDITSDuring the year in question, we had internal audits with a dedication of 1,100 auditor hours, covering 19 Masa projects, 5 Stork projects, 13 cross-sectional areas and 2 consortium projects, for a total of 39 audits. As a re-sult, the general compliance percentage of the Integrat-ed Management System IMS of the company went from 96% (reached in 2018) to 90% (reached in 2019), still in a state of compliance with the established internal goal, but generating a feedback framework for the improve-ment of the organization.

Similarly, in 2019 there was a significant reduction in the number of findings compared to the previous year.

The findings found in the current year were distributed as follows:

HAND IN HAND WITH OURChapter 3

STAKEHOLDERS

Sustainability Report 2019 • Chapter 3 - Hand in hand with our Stakeholders

56 57

HAND IN HAND WITH OURSTAKEHOLDERSBeing the industry benchmark every day, everywhere reaffirms our commitment as an organization to generating value for each stakeholder. We seek to transcend the rendering of services, as we are aware of the importance of contributing to the construction of our society.

As a result, the company deems corporate social responsibility as an essential part of the business strategy.

Addvalue for

Stakeholders

Resp

ect

Fair

Dialogue

relatio

nship

smanagement

Permanent presents

Impl

emen

tatio

n of

resp

onsi

ble

soci

alpr

actic

es

Identi�cation ofinterests and needs

in the territory

Transparency

Timely risk

During 2019, we focused our efforts on consolidating our Corporate Social Responsibility Model and its programs, so that every day our actions reflect a preventive and anticipatory management of the risks associated with our projects.

We seek to identify, control and minimize risks, interests and expectations that allow an adequate and sustainable relationship with each stakeholder in the territory.

We manage our relationships through face-to-face and virtual channels that allow stakeholders to reach us and re-solve the various issues that arise.

MEETINGSDuring 2019 we held approximately 1,262

meetings with our stakeholders throughout thenational territory. These relationship spaces

allow us to survey the most relevantexpectations that arise, related to

the activities of our projects.

Communities779

Local authorities139

Customers168

Unions71

Workers71

Local providers34

EARLYWARNINGS

364 Nationwide alerts, corresponding toconcerns and unconformities,which were timely managed.

Communities250

Others12

Unions85

Workers12

Local providers5

Center(MagdalenaMedio)Llanos (Meta)

PiedemonteCostero (Nariño)


58 59

The constant and timely relationships have allowed us to strengthen our presence and decrease social conflict in the territories.

We are the customer’s strategic ally in the environment management. For the reported period, social incidents in the territory amounted to 125, with a total of 24,148 man-hours lost, which correspond to 99.8% of operational continuity.

The areas with the greatest social conflict were:

We seek to minimize the generation of expectations in communities and other actors neighboring our projects, in line with the social relationship strategy of our customers,

delivering timely, true and clear information before, during and at the end and closing of our projects.

Our citizen attention channels received a total of 713 PQRSF (requests, complaints, claims, suggestions and con-gratulations).

PQRSF received

2018 312

2019713

YEAR

During 2019, we received PQRSF of different categories, divided as follows:

10

599

79

241

Congratulation Request Complaint Claim Suggestion

Employees receivedtraining on

the procedure

Trainedprojects68 914

Prioritization and hiring oflocal labor

We understand that the generation of job opportu-nities is a relevant matter for our communities, local authorities, customers and other actors. At Masa and Stork we are convinced that legality and regulatory compliance allows us to establish fair and dignifying relationships with our stakeholders. For this reason, we strictly comply with the labor standards and laws applicable to our work.

The increase in PQRSF is due to the effort we have made to position this channel as an important means to know

and respond to the requirements of our stakeholders.

During 2019, we developed various trainings on this tool, which strengthened its use and understanding:


60 61

During 2019, our projects far exceeded the provisions of law concerning the engagement of qualified local

labor, with a 79% compliance indicator.2.

977

2.48

7

3.34

12.

820 3.

260

2.59

9 2.99

52.

384

3.16

52.

774

3.46

22.

652

3.59

22.

851

4.07

73.

369

2.71

72.

034 2.

493

1.79

9

2.03

1

1.34

1

24

1

Jan

% Compliance

Feb Mar Apr May Jun Jul Aug Sep Oct Nov

84% 84% 80% 80% 88% 77% 79% 76% 75% 72% 66%

# Total Employees # Total AI Employees

30%Compliance

by Law

During 2019, we offered spaces and growth opportunities to people from different regions such as professionals in training and interns:

Professionalsin trainingin regions

69

Apprenticeshipagreements

215

Respect and Promotion of Human RightsMasa Stork has a permanent commitment to the respect and promotion of Human Rights. In 2019, we continued to comprehensively develop the implementation of standards and requirements adopted by MASA STORK for Human Rights management.

PolicyStatement:

We have a Corporate Policyon Human Rights that makes

visible for our stakeholders ourcommitment to the correctperformance in HR matters.

This policy is in line withColombian legislation, the

Universal Declaration ofHuman Rights, the

guidelines de�ned bythe International LaborOrganization (ILO) and

the United Nationsguiding principles.

DueDiligence:

We identify animprovement

opportunity in themanagement of due

diligence in Human Rights,in order to prevent actions

that violate the rightsof our workers,

communities andother stakeholders.

We are working on theimplementation of thedue diligence system

that allows thecompany to

prevent, mitigateand compensate

the impacts caused byour presence in

the territory.

Training:We focus our e�orts on

training our employees onHuman Rights topics:

training activities

were carried out

156on Human

Rights

Human Rights

3.385employees

received training onCompany and

During 2019, no requirements (Complaints and/or Claims) were received for matters associated

with infringements or violations of Human Rights by the organization or

its contractor companies.

The engagement indicator for unskilled labor is maintained in all our projects with 100% compliance with the provisions of law.

They recognized the importance of our program and highlighted the needto continue this excellent work.

Re�neria de Cartagena Cerrejón ECP VRO

CHILDRENIMPACTED

2 0 1 9

We want to share with you the 2019 results of our MAX LISTO Corporate Social Responsibility program and show you how we contribute to the education of children in the regions.

FIGURES TERRITORIES VISITED:Neiva Albania Puerto Gaitán Villavicencio PáezPasacaballos Monterrey La Cristalina Hato Nuevo PapayalDinaAipe Resguardo RubialesGuacirco San JorgeCupiagua

GUAJIRA

ATLÁNTICO

CORDOBA

ANTIOQUIA

CHOCO

QUINDÍO

RISARALDACALDAS

TOLIMA

HUILA

CAQUETÁ

AMAZONAS

VAUPÉS

GUAVIARE

GUAINÍA

VICHADA

META

CASANARE

ARAUCA

BOYACÁ

SANTANDER

CUNDINAMARCA

VALLE DELCAUCA

CAUCA

SUCRE

BOLÍVAR

NARIÑO

NORTE DESANTANDER

MAGDALENA

CESAR

PUTUMAYO

1.819

1.969

17

MODULES IMPLEMENTED

AGREEMENTS IMPACTED: RECOGNITION BY CUSTOMERS:

Rights and dutiesof children

Road safety

Environment

Hand care

Electrical Risk2018 DURING

WE ACHIEVED

12AGREEMENTSIMPACTED

Volunteering:Expansion ofthe corporatevolunteerprogram thatallows impactingmore areas andstakeholders.

We continue tostrengthen theCSR culture insidethe organizationand at all levels, inorder to ensureour ethical andresponsible actionbefore ourstakeholders.

Sustainability:Strengthen ourcompany’s CSR froma sustainabilityapproach to turnour area into amanagementthat allows us todevelop and givegreater scope toour administration.


62 63

In line with the respect for the rights of our employees, in 2019 we strengthened our commitment to union organizations through an open and constructive dialogue, which allowed the execution of three collective bargaining agreements.

Own Unions:

In the mining operations developed by Masa and Stork in the carbon complex of El Cerrejón in La Guajira.

- SINTRAMASA- SINTRAMACE

Industry Unions:

•UniónSindicalObreradelaIndustriadelpetróleo(USO)

SOLIDARY ACTIONS

During 2019, we continued to develop our Max LISTO Program intended to support the education of children belonging to the communities neighboring our projects in matters such as environment, rights and duties and self-care.

2020CHALLENGE


6564

Our employees are the driving force that allows us to be benchmarks of the industry, reason why attracting and se-lecting the best personnel is a challenge we face in each front of our operation. Likewise, we seek to provide work environments in which the safety, health and well-being of our employees are guaranteed to meet the expecta-tions of all our stakeholders.

2019 was one of the most challenging years for person-nel recruitment, selection and hiring process for our or-ganization. We closed the year with a total engagement of 12,464 people, having made more than 8,000 job offer publications in more than 20 Public Employment Agen-cies and SENA nationally, receiving more than 90,000 ap-plications and allowing the assessment of approximately 30,000 people across the country.

We are working on attracting the best talent and being the number one option in the labor market, allowing all people close to our operations to see us as a solid and reliable work source, where they can grow and fulfill their professional and personal dreams.

12.464 engagements

8.000 job offer publications

20 public employment

agencies and SENA90.000 applications30.000 assessments

7.867

6.315

315 320 186 215 61 110

Work or Project Indenite Apprenticeship Fixed term

2018 2019

Types of Employment Contracts

The decrease in the number of active personnel versus the results shown in 2018 is due to the completion of the PMA and TNA Consortia.

Having equal hiring in all the company areas is a challenge to make progress in the sustainable development goals. There-fore, for Masa and Stork, having an inclusive, capable and equitable workforce is an important aspect for which we strive every day in the processes we perform.

Gender Distribution

886

7.543

811

6.147

2018

Female

2019

Male

EMPLOYEES AND WORKPLACESOur hiring model is framed within commercial

agreements with a specific term according to the needs of our customers, so the contract modality for specific project or

work predominates.


66 67

We have employees with extensive experience, who give us their knowledge and skill, thus strengthening our skills and respon-siveness to the expectations of our customers.

Age Distribution

2.2821.927

5.053

4.273

1.094758

18 to 30 years 31 to 50 years over 50 years

2018 2019

Personnel Turnover Index

7%

5%26%

CONSORTIA

In 2019, consortia presented the highest personnel turnover index due to the termination of the PMA and TNA commer-cial agreements.

PERFORMANCE MANAGEMENT

During 2019, the main objective was focused on developing leadership skills and understanding the leader role within our organization.

Likewise, and focused on our workforce, efforts were made in relation to the assurance of technical skills in order to guarantee the talent required to meet our contractual commitments and ensure the quality of our services.

This leader should be: main change mobilizer, central axis of all processes,key player of a good results management,promoter of an appropriate work environment, basis of the company’s future

During this year, 661 of our employees used their profiles for the first time on our new performance platform, which al-lowed the assessment of all of them. With this, we make sure that all employees are focused on results and understand the value they add with their own efforts.

At Stork, we understand that being the benchmark of the industry involves planning our organization according to its talent, ensuring its performance, developing it comprehensively

and continuously training it to maintain its skills updated and innovation-oriented, looking for better ways to do things.

@FOX

Total employeesassessed for

performance.

661

Total employees assessed for performance,distributed by �eld and administrative

229Operative

189Admon

45Project

Managers

133Supervisor

65FieldAdm

38Leading

Participantsof Others

Main training programsdeveloped in the year

with coverage

32Leading

Participants ofLeaders


68 69

TRAINING AND EDUCATION

The 2019 efforts focused on:

- Training and development ofleadership skills

This objective was implemented through the ILEAD pro-gram. The Leadership Institute (LPI) located in the Neth-erlands established the career line for our organization’s leaders, identifying and structuring programs that de-pend on the leadership expectations they work on.

During 2019, two groups called Leaders of Others were held, a program addressed to leaders in charge of teams and having direct management responsibilities over people. These first two groups were held in Alba-nia (Guajira) and 38 supervising leaders of our opera-tion participated.

Likewise, two programs were developed for the second level referred to as Leaders of Leaders, i.e. people who have management and responsibility over other organi-zation leaders (Leaders of Others). In these programs, 32 leaders from all regions participated.

The program will allow us to differentiate our current and desired leadership level as clear as possible, allow-

ing everyone to speak the same language and under-stand the different challenges that a leader faces to manage results from the human team. That is why 2019 was the beginning of a transformational journey for Stork together with the development and strengthen-ing of its leaders.

- Assurance of technical skills required

Within our interest in establishing mechanisms that en-sure that our employees have the knowledge and techni-cal and soft skills required to facilitate their performance, we created a second focus, related to the design of skill development programs with which we seek to boost the professional career and technical knowledge of our em-ployees. During 2019, an investment was made in train-ing for almost 10 billion pesos in programs associated with the different topics and technical disciplines that we are responsible for, achieving a participation of a total of 7,852 trained employees.

In each agreement, and according to the specific needs of each of them, the training plans were carried out with

internal and external experts through the transfer of

technical knowledge, both in person and virtual

WELL-BEING

Education Aid

For Masa and Stork, the development and constant training of our employees is always a priority. For this reason, within the policies and procedures of Human Resources, we have educational benefits that aim to support and encourage employees to pursue an education related to their work, contributing to their performance and strengthening their skills, which in turn will contribute to the achievement of the company’s objectives. Through this benefit, our employees have been able to access courses, workshops, seminars, diplomas and updates 100% sponsored by the organization.

Total trainedemployees

7.852 20.272

Total trained employees, by managementor operation

7.783Operativefunction

69Adm. function(Bogota and Neiva)

Total hours of trainingand education

9.160.798.484

Amount in $ invested bythe organization in training

and education of employees

Finally, the company also sponsors language programs for up to 4 million pesos for those employees who, because of their roles and responsibilities of the current position or potential short-term positions, require being fluent in this language.

In addition, we have been supporting studies related to specializations and University or Technical undergraduate programs, as well as MBAs,

with up to 80% of the value according to the academic performance obtained by the beneficiary and with a two- or three-year forgiveness

regarding the program.


70 71

TELEWORK

Since 2016, we have implemented our Telework program, focused on increasing productivity and quality of life of our workers through a greater work-life balance. Currently, we have 29 people enrolled in the program in the city of Bogota, 19 are women and 10 are men. With this work modality, we seek to decrease our impact on the environment, reducing emissions.

Our main objective as an organization is to maintain and strengthen a flexible working environment that allows us to exponentially increase the satisfaction and well-being of our employees. For this reason, our greatest challenge in 2020 will be to increase by 50% the number of workers enrolled in the telework program in the city of Bogota and implement it in the city of Neiva and in the administrative offices of our operations nationwide.

This is how we make progress in the fulfillment of our challenges:

men

employeesenrolled in

the teleworkprogram29 19

women10

2020CHALLENGE

OCCUPATIONAL SAFETY AND HEALTH The good performance in HSEQ in 2019 was due to the visible management leadership that the organization has been building day by day, framed within a process of cultural transformation with the permanent participation of operation-al areas such as O&M and P&C, transversally supported by the functional areas, gradually achieving a set objective that is to reach an HSEQ-SP “on line”.

2018 -2022 HSEQ Map

2018

2019

2020

2021

2022

30/60/90 PlanDiagnosis

Standardizationof cultureand skilldevelopment

Consolidation andreference LATAM ToolBox (SORs)ISO 45001ISO 14001ISO 9001Ruc

Validation,improvementand alignmentLATAM

Referencesource inlocal andinternationalindustry

1. 2019 HSEQ MANAGEMENT INDICATORS:

In 2019, 33 recordableevents were reportedthat directly a�ected

the accident rateindicators.

Of these events, 11were incapacitating, 8 had a

temporary reallocation offunctions for the a�ected

workers, and 14 hadmedical treatment.

In 2019, 154 casesclassi�ed as �rst aidand 6 cases with no

treatment werereported.

The monthly averageworking population during

2019 was 7,800 peoplewith 20,443,481

man-hours worked.

Entrenar y capacitar a nuestros líderes en competencias claves para una gestión integral eficiente a través del programa corporativo I-LEAD.

Fortalecer nuestros procesos de inducción a nuevos colaboradores para asegurar y facilitar su proceso de adaptación.

Continuar con el desarrollo de los mapas de talento, planes de sucesión y evaluaciones de desempeño, a fin de garantizar la sostenibilidad de la organización hacia el futuro.

Se dio inicio a la implementación del programa en Colombia. Sin embargo ésta será un iniciativa que continúe al menos durante 5 años más para involucrar a todos los líderes de la organización.

Durante 2019 se hizo un relanzamiento del programa de inducción y se ajustaron los diferentes temas y políticas. Este proceso continuará en 2020 cuando se piensa lanzar un kit con recursos y materiales para los nuevos empleados.

Con la implementación de FOX se facilitará el proceso de gestión de desempeño y la identi�cación de talento. Para los años que vienen se deberá seguir trabajando en este sentido de forma que los procesos sean cada vez más entendidos por la organización y los mismos empleados.

Assurance of the performance managementprocess and the implementationof the talent management process, notonly in management positions but also inthe operation, under the 9BOX methodology.

Consolidation of a national training anddevelopment program that includes both

soft and technical skills and facilitatesthe assurance of technical competency.

Increase the number of teleworkers to60 employees enrolled in the city ofBogota and 40 employees in the city of Neiva.

men

employeesenrolled in

the teleworkprogram29 19

women10


72 73

Statistical data to determine the TCIR, DARTand FAV indicators

FAT

LTI

RWC

MTC

FAC

NT

UCA

HiPo

MHW

KM Driven

0

11

8

14

154

6

15.278 - 46 NM

4

20.443.481

20.284.375

In terms of occupational accidents, the company measures the administration with two indicators. On the one hand, the indicator called TCIR that relates the man-hours worked and the number of record-able events (FAT fatality, LTI lost time event, RWC restricted work event and MTC medical treatment event), and on the other hand, the DART indicator that relates the man-hours worked and events that include restriction or days of absence (LTI and RWC).

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

TCIR GOAL TCIR

0,11

0,15 0,19

0,200,20

0,23 0,230,23

0,30 0,330,320,35

For Masa and Stork, the accident goal is zero (0); however, a tolerance level is set for the TCIR indicator which for 2019 was 0.35. The chart shows that the final result, for this indicator, was below the tolerance level set.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

DART GOAL DART

0,11 0,11

0,14

0,12

0,10

0,17

0,15 0,14

0,18

0,20

0,19

0,13

The tolerance set for the DART indicator in 2019 was 0.13. The chart shows that the result for 2019 was 46% higher than expected, due to 19 events recorded with absence or restriction days, however none of these events was high potential.

TCIR Indicator Behavior DART Indicator Behavior


7574

As part of our efforts to promote a culture of self-care and protection, the commitment of our managers brought transfor-mation in the organization’s approach to HSEQ topics. This ranged from the understanding of the needs for improvement in management, to the solution of each of the problems. Thanks to this management, it was possible to strengthen the following aspects:

Management leadershipwith a high level of

commitment to HSE

Supervisionin work

planning

Positive relationshipwith the customerfor work execution

Higher level of skillsin the supervision

line, HSE and workers

Strengthening thepersonnel recruitment

process to ensurecompetent employees

in the operation.

Supervisors inconstant growth

of their skills

The strengthening of processes allows us to gradually grow as the

level of awareness, leadership, follow-up and control is

leading the organization to grow and be a benchmark

in the industry.

Monthly meetings organized by the LATAM Vice-Presidency

were held, which allowed standardizing processes in the

region, motivating the regional managements in improvement and strengthening of the HSEQ

commitment.

While the management level was strengthened, the company continued to develop tools supporting the HSEQ manage-ment with various objectives:

•Improvethemanagementofreportsofacts,unsafeconditionsandquasi-accidents.•EncourageandrecognizetheperformanceofworkerswhohavedoneextraordinarythingsinHSEQ.•ImproveHSEQperformancebyworkingstartingwithpeople’sbehavior.

APP REPORTS

To improve the management of reports of acts, unsafe conditions and quasi-ac-cidents, the company took advantage of the current technological developments. To achieve this, a mobile application was created, where a person can make a report, take a photo of the situation or condition, offer an idea for a possible solution and the project management learns in real time of the reported event. This tool has allowed several achievements, highlighting the im-provement of the risk management process and the improvement in the ease and ac-cess to the tool.

By the end of 2019, 589 people had downloaded

the application and made 748 reports


76 77

LISTO AWARDS,BEYOND ZERO

Desde 2016, cada año Masa y Stork Since 2016, every year Masa and Stork joins the global celebration of HSE in Stork. For this edition, four categories were recog-nized where all Masa and Stork employ-ees of the LATAM Region were able to nominate their outstanding colleagues in HSE innovation, incident prevention, HSE hero and best team of the year.

This recognition highlights the work of our leading employees and example within their contracts in HSEQ topics, and promotes a safety culture based on taking care of each other and caring about their health.

A total of 205 nominees were registered, 74% of them from

Colombia, 18% from Peru and 8% from Trinidad &Tobago.

In the end, all countries were winners in some category, and regional awards

and awards from the Stork Global Presidency were awarded.

HSE Week

For the third year in a row, the company participated in HSE Week, a Fluor flag-ship program, which was held from May 6 to 10, 2019 in different projects in re-gions such as Meta, Casanare, Cesar and Magdalena Medio, mainly.

HSE Week’s motto was “Together, we are ... healthier, safer, greener.”

In this event, our employees were able to share through fun activities the impor-tance of safety and teamwork to obtain better results and achieve the goals set, al-ways with safety as the first pillar.

BEHAVIORAL SAFETY

Masa and Stork’s HSE management is based on prevention. The company fo-cuses on the behavior of its employees during the execution of their activities and the understanding that safety de-pends on each individual. Our focus is on self-care.

This program achieved the recognition of our clients Ecopetrol, Cerrejón and Hocol.

This flagship program of our company takes advantage of all HSE transversal management, since the main focus for prevention is always on the person. In the uphill task of accident prevention, the company bet on improving peo-ple’s behavior during the execution of the work. This is where efforts were concentrated for inspiring discussions from management and supervision, al-ways supported by the concept of self-care in the workshops on safe and con-scious behavior.

The training covered topics such as road safety, hand care, electrical risk, process safety, operational discipline, tool handling, reporting unsafe acts and conditions, work permits and risk analysis, with a focus on improving leadership using positive and perfor-mative psychology.

In this program 4,500 people participated in the safe and

conscious behavior workshop, 60 project managers were trained

and 120 observers made 320 observations.


78 79

ROAD SAFETY

Road safety management is measured by two indicators: the first relates to the total road accidents frequency (FAV-T) and the second to the serious events frequency (FAV-G).

In 2019, the company reported a total of 20,248,375 kilometers traveled and 43 road accidents, giving an FAV-T result of 1.97, below the target of 3.57.

Fav G TARGETFav G

0,250,20

0,26 0,230,20 0,18 0,16 0,15

0,36

0,00 0,00 0,00 0,00

Fav T TARGETFav T

2,96 2,52 2,10 2,25 2,272,01 2,36 2,16 2,17 2,02 1,97

3,57

3,23

Of the total road events recorded, 3 were qualified as high potential caused by overturning in mining areas, with material consequences only. These events affected the FAV-G indicator, obtaining as a final result 0.15, below the proposed tolerance.

During 2019, a special travel assurance plan was carried out in the main projects where road risk demands more re-sources due to its criticality level. The main component of this assurance was the involvement of management in the control of road safety aspects such as driver, vehicle and behavior. This plan resulted in a decrease in high potential accidents, a result that was leveraged by the following facts:

Assurance of 100% of the activities in vehiclesand drivers. 336 drivers observed

and 167 vehicles checked.

Management's commitment to carry outobservations of driver behavior,

13 observations on average per Manager for Cerrejón.

98% of drivers retrained on site.

40 vehicles were stopped and sub-standardconditions corrected.

57% of drivers trained in 3 di�erent training modules.

2020CHALLENGE


80 81

MANAGEMENT OF PREVENTIVE AND OCCUPATIONAL MEDICINE

The administration of preventiveand occupational medicine during

2019 focused on both strengtheningthe team and implementing

technologies that improved theresponse capacity of the company's

needs. With this redesign of thestrategy, the following

was achieved:

Assurance for the timelyattention of workers whosu�ered health events, achievingreturn in adequate conditions totheir homes and workplaces.

Improvement of promotion andprevention programs accordingto the current epidemiologicalneeds of the operations.Accordingly, the monitoring ofcardiovascular diseases was framedin a new system of epidemiologicalsurveillance.

Improvement of the processesfor monitoring the health statusof the working population.

Improvement in themanagement of medical information through thedigitalization anddecentralization of thecompany's medical information.

ABSENTEEISM AND MORBIDITY

In 2019, a total of 20,443,481 man-hours of work were reported, of which 175,064 hours were reported as absenteeism due to events of common and occupational origin. The absenteeism rate for the company was 0.86%.

The most relevant information on absenteeism and morbidity is:

PROCESS SAFETY MANAGEMENT

Masa and Stork’s Process Safety Program aims to reduce the risk of major accidents through the application of good in-dustry practices.

To achieve this, standards and practices recognized by the hydrocarbon industry are used to guide and control all activ-ities that impact on asset integrity, design, construction, and operational and maintenance practices.

The guidelines of this SP program have been included in the company’s IMS (Integrated Management System) with the aim of establishing a system with an integrated approach to risk management.

The implementation of this first phase during 2019 allowed the training of around 1,000 employees in the fundamen-tals of process safety, operational discipline and in different tools of the operational integrity model. This brought as a benefit the increase of process safety event reports and their management.

Of the total number of hoursof absenteeism in 2019,

96.5% were due to commonillness, 2.3% to occupational

disease and 1.2% tooccupational accidents.

On average, about

workers per month174

had a sick leave out ofa total of 7,500.

The cause of medicalleave that generated

most absenteeismduring 2019 was related to

musculoskeletalproblems.

Reporting of processsafety events anddevelopment and

closure of SP eventinvestigations.

Training of operationpersonnel in the

fundamentalsof process safety andoperational discipline

Visit of �eld specialiststo elaborate thediagnosis to the

facility with focuson process safety

Development ofthe process safetyplan for the term

Monthly monitoringof the progress of the

SP plan and its indicators

This program has allowed the company to implement stan-dards (good operational and maintenance practices) that con-tribute to avoid catastrophic accidents, being our organization one of the few companies in Colombia that has a team dedicat-ed to the implementation of the program under international guidelines of the CCPS (Center of Chemical Process Safety).

Strengthening the Process Safety culture and the understanding of hazards and risks will make it possible to reduce the probability of loss of containment of any fluid that could generate accidents to people, material damage, environmental pollution and affect the communities surrounding the operations (catastrophic accidents).

The implementation of the process safety program includes several stages:

For 2020 the challenge is to strengthen the compa-ny through regional alignment in HSEQ with the dif-ferent international and local standards in which the company is certified. The main challenge for this peri-od is to achieve a total migration from OHSAS 18001 to ISO 45000.

The strengthening of the involvement of all manage-ments in aspects of HSEQ will have as main scenar-io the realization of inspiring conversations by the managers, achieving with this tool a greater approach with the work force.

OUR ENVIRONMENTALChapter 4

FOOTPRINT

Sustainability Report 2019 • Chapter 4 - Our Environmental Footprint

84 85

ENVIRONMENTAL MANAGEMENTMasa and Stork is a company determined to work to generate positive results, with challenging objec-tives and strict compliance with Colombian regulations. During 2019 we focused on meeting national and international standards, thanks to which we achieved:

Zero (0) NON-conformities in our environmentalmanagement systems ISO 14001/2015 andColombian Safety Council RUC Guide.

Zero (0) sanctions or requirements from regional autonomouscorporations, clients or certifying entities.

Zero (0) environmental accidents that will signi�cantly orirreversibly a�ect the ecosystem.

The identification and assurance of environmental requirements in each business line, operational con-trols focused from prevention, mitigation, correction and compensation allow our management of en-vironmental issues to have excellent results.

OUR RESULTS

2019 FOSSIL FUEL CONSUMPTION

During 2019 there was a decrease in fossil fuel

consumption compared to 2018, with 106,186 fewer gallons of diesel

and 3,968 fewer gallons of gasoline consumed.

Gasoline

Diesel 2018 2019CONSUMPTION

2018 2019CONSUMPTION

4 .449

827.627721.441

8.417

The decrease in fuel consumption was due to the analysis and imple-mentation of activities to optimize the use and equipment of vehicles in operations:

● Review of the number of vehicles supporting each agreement.● Renewal of the vehicle fleet with the rental provider.● Agreements with local providers for the rental of vehicles and equipment.● Control of the use of vehicles in operations.

AVERAGE KM TRAVELLED PER VEHICLE DURING 2019

YEAR KM TRAVELLED VEHICLE NUMBER KM / VEHICLE

2017 17.723.184 633 27.998

2018 22.099.581 953 23.189

2019 20.669.229 907 22.788


86 87

1,430,352 million kilometers less were

travelled than in 2018 thanks to the optimization of the

vehicle fleet, reducing the rate of fuel consumption per kilometer travelled.

Gasoline

Diesel

2015 2016 20182017 2019

Gallons of diesel consumed

Gallons of diesel consumed

1.113

7.358

2.040

4.449

8.417

2015 2016 20182017 2019

7.407 2.316

414.373

721.441827.627

With the reduction in fuel consumption, 1,144 tons

of Co2 emissions were avoided.

2019 Energy consumption:808,374 Kwh

The use of the energy resource is done in all our locations, whether they are administrative or operational head-quarters. In most of our projects, the client is the one who provides us with this resource. As one of our objectives is to be an ally for our clients, we strive to design energy management and savings plans for the efficient use of the resource, performing:

● Training● Equipment functionality inspections ● Electrical connection inspections

(Kwh)

2015 2016 20182017 2019

191.370

804.105

601.754

808.374732.874

RATIONAL AND EFFICIENT USE OF ENERGY

Energy consumption of the last 5 years

In 2019, 10.3% more Kwh was consumed than in 2018. This situation is explained by the increase in our op-erations under the new CENIT – Líneas Agreement and their bases in Medellin, Manizales, Pereira, Yumbo, Buenaventura and Ricaurte, where we have our own headquarters with consumption records by base.

The variables taken into account for the measurement of the energy indicator were the number of services/maintenance executed by Masa and Stork, the number of employees and the number of man-hours worked, which are directly proportional to the number of projects of the company in Colombia.

The administrative headquarters in Neiva had the highest energy consumption due to the number of people working there, which on average is 130 persons/month.

(Kwh)

Admón.Bogotá

Admón.Neiva

Admón.Yopal

Ecopetrol- VCR

Ecopetrol- VRO

CENIT- Líneas

Tabarca MarcoConstrucciones

ODL -Bicentenario

89.493

202.520

60.461

4.281

91.007,86

131.102,25

34.240,614.830 6.954

Energy consumption per project during 2019


88 89

COMPREHENSIVE WATERMANAGEMENTAt Masa and Stork, we seek savings and efficient use of water, so we develop management plans with activities for the pres-ervation of water and we involve all our employees seeking to control the consumption sources and the volume used in the activities that need this resource.

To calculate this indicator, the number of employees and the man-hours worked were taken as variables.

Our operations require water resources for different activities:

● Hydrostatic tests● Washing areas (workshops, offices)● Cleaning of equipment and tools

Water consumption in 2019: 5,294 m3

Consumo de agua doméstica por proyecto año 2019

Admón.Yopal

ConsorcioTurnaround

Ecopetrol- VCR

Ecopetrol- VRO

CENIT- Líneas

1.581

177425

40

458,5

854,9

102 208,5

Admón.Neiva

MarcoConstrucciones

ODL -Bicentenario

Domestic water consumption (m3) in 2019

Neiva’s administrative headquarters generates the highest water consumption with 41% of the company’s total. We are currently carrying out awareness campaigns and imple-menting different activities that allow us to save:

● Area inspections of the hydraulic connections.● Preventive maintenance of water conveyance systems.● On-site training for visitors.

In areas such as the administrative headquarters in Bogotá, it is not possible to measure consumption because the build-ing administration has a global measurement system with a pro rata charge per square meter.

Water consumption of the last 5 years (m3)

M3 de Agua consumida

1.374

3.102,92,823,12

3.382,74

5,294

2015 2016 2017 2018 2019

In 2019, 1,911 m3 more water was consumed than in 2018 due to the increase in the administrative bases of the CENIT – Líneas Agreement located in Medellin, Manizales, Pereira, Yumbo, Buenaventura and Ricaurte.


90 91

The company understands its role in the proper final disposal of waste generated in operations. Once the activities of reduction, reuse or use of materials have been carried out, our last option is final disposal.

MANAGEMENT OF SOLID DOMESTIC, RECYCLABLEAND HAZARDOUS WASTE

We also carry out a rigorous follow-up of the providers in

charge of this important task.

By the year 2020 we expect to perform:

● Characterization of the processes● Quantify and consolidate input use● Establish the carbon footprint of these consumables● Establish actions to reduce and/or mitigate the volume of hazardous waste and thus minimize our carbon footprint

The waste generated by our activities is mainly scrap, plastics and cardboard; scrap being the great dif-ferentiator because, due to its volume and weight, it intensifies the amount of waste between periods.

Quantity of usable waste from the last 5 years

(Kg)

2015 2016 20182017 2019

12.55916.384

49.931

6.680

35.922

Total amount of waste for use in 2019:

6,680 KgIn 2019, 29,242 kg

less were generated than in 2018.

In 2019 an optimal use of recyclable waste was obtained, thanks to their awareness of the life cycle analysis by the employees and the follow-up of separation at source.

In order to characterize the waste, the company implemented management plans in its operation so that employees can identify the separation method according to the applicable color code, tem-porary storage and final disposal.

Generation of HazardousWaste (RESPEL)The Tello Generation Center is the project with the highest report of RESPEL with a production of 9,886 kg, which represents 50.9% of the com-pany’s total RESPEL. The mechanical, electrical and instrumental maintenance of the power generation equipment produces used oil and batteries. The disposal of RESPEL is done by the client and atMasa and Stork we control the vol-ume generated month by month.

RESPEL Waste generation year 2019: 20394 Kg

The completion of the PMA

Consortium project and the

reduction of oil at the Dina and Tello generation centers helped to achieve a reduction of 2267 kg in hazardous

waste in 2019 compared to 2018.

Amount of waste generated bytype during 2019

(Kg)

Respel0

5000

10000

15000

20000

Usable Organic

WASTE TYPE QUANTITY YEAR 2019 (Kg)

RESPEL 20,394

USABLE 6,680

ORGANIC 8,257

80% of the projectshad recreationalsessions in which

our employeeswere trained

to learn the originof the inputs used

daily and theprocesses of

�nal disposal.

Product lifecycle

At the Bogotá o�ces,Yopal and VRC,

a metal cup was givento each employee in

order to minimizeconsumption in cafeteria,thus eliminating 38,850

single-use plasticunits. This is

a contributionof the organization,for the conservation

of land�lls,soils and a contribution

so that the oceansreceive less

contaminating plastic.

Replacementof single-use

plastics

This campaign wascarried out withthe objective of

generating awarenessamong our

employees to avoidcolor printing, dueto the highly toxic

materials of theinks and their prolonged

decomposition time.

Preventing colorprinting

During 2019, Masa andStork focused on

monitoring and measuringfossil fuel consumption,starting with diesel fuel

and electricity.

With this measurement wewant to establish data

to form baselines, whichin 2020 will allow thecompany to generate

its �rst GHG (Greenhouse Gas)report and thus, establish

the measurement ofCarbon Footprint

in order to analyze andestablish reduction

alternatives.

Emissions Control

Emisiones de TON de CO2

2015 2016 20182017 2019

767,15 1024,05

4.214,69

7.945,008.594,05


92 93

ENVIRONMENTAL CAMPAIGNS

During 2019 the meetings and training with the employees of our projects, focused on explaining, understanding and consolidat-ing the concept of emissions generation and how we control them at Masa and Stork. Sim-ilarly, the restructuring of the vehicle fleet helped to improve our emissions results.

CO2 emissions in 2018: 8,594 TON Equivalents

CO2 emissions in 2019: 7,945 TON Equivalents

Co2 emissions of the last 5 years (ton)

The companychallenges itself in2020 to continue

reducing GreenhouseGas (GHG) emissions.

Challenge

Collection of informationto limit the creation

of the carbonfootprint calculator

according toindustry standards

Challenge

Six-month report withconclusions and

opportunities for improvement in the

reduction of emissions.

Challenge

Having a corporate carbonfootprint calculator

Challenge

Investing in environmentalsustainability projects.

Challenge

To invest inenvironmental

sustainability projectsthat will lead us to be a

benchmark in the industry

Challenge

O�set 22.2% of emissions for Masa, 58.8% forStork and 28.1% for the consortia

Challenge

This is how we move forward in meeting our challenges

During the year 2019 no emission o�sets weremade in terms of tree planting due to

the lack of budget to implementsuch activities. For this reason, in 2020 the

company plans to develop a decarbonizationproject in its projects in Colombia

Progress

In 2018, 1,960 tree species were planted in a large jointcampaign with our client ECOPETROL in the Meta

area, thus o�setting 8.9% of the emissions for Masa,111.9% for Stork and 27.8% for consortia.

Progress

To reduce energy consumption and achieve the correctclassi�cation of waste in the Neiva and Bogotá o�ces through

the promotion of conscious and coherent behavior byemployees to generate an environmental culture.

Challenge

Behavioral changes were generated among ouremployees in pursuit of sustainable and e�cient

work environments, transforming energy consumptionpractices and proper waste separation

Progress

Implementation of strategies to develop modelsthat identify percentages of reduction in

the company's carbon footprint.

Challenge

Structuring of the project with established objectives anddeliverables stipulated through a work schedule

Progress

2020 CHALLENGESustainability Report 2019 • Chapter 4 - Our Environmental Footprint

94 95

Continuing with the achievement of good results and the search for innovation, at the end of 2019, the company turned to the search for strategies that would lead it to environmental sustainability scenarios. For this reason, we are carrying out a rigorous process of research into the Carbon Footprint and how to manage it by 2020. Thanks to this process, we defined our challenges for the following year:

Sustainability Report 2019 • GRI Table of Contents

96 97

102-13 Association memberships

Member of the Board of Directors of the Colombian Chamber of Petroleum Goods and Services (CAMPETROL)Member of the Board of Directors of the Colombian Safety Council (CCS)Member of the Contractors Committee of the Colombian Safety Council (CCS)Member of Holland House of the Colombo-Dutch Chamber of CommerceMember of the Bureau Veritas Certification 2018 Impartiality Committee

98

STRATEGY

102-14Statement by senior executives responsible for decision making

In addition to the Board of Directors, in which the main business decisions of the company are made, there are the following management committees:LATAM REACH STEERING COMMITTEESTRATEGIC TEAM COMMITTEELATAM PRM FINANCIAL COMMITTEE

26

ETHICS AND INTEGRITY

102-16 Values, principles, standards and rules of conduct 16

102-17 Advisory mechanisms and ethical concerns 52

GOVERNANCE

102-18 Governance structure

Main:Taco de HannSandeep SharmaPatric Jansen

Alternates:Alejandro EscalonaReinaldo RodriguezCamilo González

27

GENERAL CONTENTS

General Basic Contents Indicator description Comments Page(s)

COMPANY PROFILE

102-1 Name of the company Mecánicos Asociados SAS. 1

102-2 Activities, brands, products and services

Stork Technical Services Holding B.V Colombia Branch.

18

102-3 Location of the headquarters Energy, oil, mining 98

102-4 Location of operations

The company's headquarters are located in the city of Bogotá, Cundinamarca, Colombia. Carrera 7 # 156 - 10 floor 25

21

102-5 Ownership and legal form Our market presence 26

102-6 Markets served

Mecánicos Asociados S.A.S is a Simplified stock corporation (SAS). Stork Technical Services Holding B.V Colombia Branch, is a branch of a foreign company

21

102-7 Size of the organization 10

102-8 Information on employees and other workers 64

102-9 Supply chain 44

102-10Significant changes in the company and its supply chain

For 2019 there were no significant changes in the company in relation to its size, structure, supply chain, among others.

98

102-11 Precautionary Principle or Approach 9

102-12 External initiatives

The company has not adhered to any external environmental and/or social initiatives and/or certifications.

98

GRI TABLE OF CONTENTS


98 99

STAKEHOLDER ENGAGEMENT

102-40 List of stakeholders 29

102-41 Collective bargaining agreements 62

102-42 Identification and selection of stakeholders 30

102-43 Approach to stakeholder engagement 30

102-44 Key issues and concerns mentioned 29

REPORTING PRACTICES

102-45Entities included in the consolidated financial statements

Mecánicos Asociados S.A.S, Stork Technical Services Holding B.V Colombia Branch.

Stork Group ConsortiumTABARCA Consortium

98

102-46Definition of report contents and subject coverage

32

102-47 List of the material issues 32

102-48 Restatement of information No restatement was made -

102-49 Changes in reporting Not applicable -

102-50 Reporting period January 1 to December 31, 2019

102-51 Date of last report Dec 31, 2018 -

102-52 Reporting Cycle Annual -

102-53 Point of contact for questions about the report

Sustainability Management CSR Leader [email protected]

-

102-54

Statement on the preparation of the report in accordance with GRI standards

5

102-55 GRI Table of Contents 98

102-56 External verification This report is not externally verified 5

MATERIAL ISSUE 1: SUSTAINABLE GROWTH

103-1 Explanation of the material issue and its coverage 37

103-2 Management approach and its components 38

103-3 Evaluation of the management approach 38

201-1 Direct economic value generated and distributed 39

203-2 Significant indirect economic impacts 39

204-1 Expense ratio on local suppliers 48

205-1 Operations evaluated for corruption-related risks 40

Own Business Continuity 50

MATERIAL ISSUE 2: ETHICS, INTEGRITY AND COMPLIANCE




205-2Communication and training on anti-corruption policies and procedures

53

205-3Confirmed cases of corruption and measures taken

53

206-1

Legal actions related to unfair competition and antitrust practices and against free competition.

53

MATERIAL ISSUE 3: COMMUNITIES




412-2Employee training on human rights, policies or procedures

61


100 101

413-1

Significant investment agreements and contracts that include human rights clauses or that have undergone human rights assessments

61

MATERIAL ISSUE 3: EMPLOYEES AND WORKPLACES




401-2Full-time employee benefits not provided to temporary or part-time employees

Not applicable -

404-1 Average hours of training per year per employee 69

404-2

Programs to improve employee skills and transition assistance programs

67

404-3

Percentage of employees receiving regular performance and career development reviews

67

MATERIAL ISSUE 3: OCCUPATIONAL SAFETY AND HEALTH




403-1Workers' representation on safety and health committees

JOHSC Coexistence Committee Road Safety Committee

98

403-2

Types and rates of injuries, occupational diseases, lost days and absenteeism, and number of work-related deaths

72

Propio Management for process safety 81

MATERIAL ISSUE 4: PROTECTION AND CARE OF THE ENVIRONMENT




302-1 Energy consumption in the company 87

306-2 Waste by type and disposal method 90

306-4 Transport of hazardous waste 91

307-1Non-compliance with environmental laws and regulations

92

104

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