In all our operations, we seek to do business with diverse companies and are committed to giving them equal and impartial opportunity. This approach stimulates local economic development and enhances our long-term business performance by improving supplier responsiveness, competition and sustainability.

Our total expenditures to small businesses and to businesses owned by veterans, women and minorities in the United States totaled $1.8 billion in 2007 and $2.2 billion in 2008. To encourage the inclusion of diverse suppliers in our U.S. procurement activities, we have set annual goals to increase this level of business. In 2007, we met our goal to increase expenditures with minority-owned and women-owned business enterprises by 20 percent. Our goal for 2008 called for a 25 percent increase and was met through total expenditures of more than $700 million.

Our supplier diversity program extends to active participation in organizations that support the development of smaller local businesses in the United States. We are corporate members of the National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise National Council (WBENC).  And at our Alliance refinery in Belle Chasse, La., our chief procurement officer and business manager hold board seats on NMSDC regional councils, and our director of supplier diversity and the purchasing superintendent hold board seats on WBENC regional councils.

In 2008, the company was recognized by the St. Louis Minority Supplier Diversity Council for demonstrating innovative approaches to drive inclusion of minority-owned businesses in the area. Internally, we recognize supplier diversity through our Supplier Diversity Leadership Awards program, which recognizes individuals, teams and business units who demonstrate superior leadership in promoting global supplier diversity. Winners in 2008 included the ConocoPhillips procurement functions for the Wood River refinery in Roxana, Ill., the Russia and Caspian region, the U.S. Lower 48 production area, and the Los Angeles refinery.

The company is committed to developing supplier diversity worldwide. Currently, each business unit outside the United States has its own program in place. To leverage corporate synergies and provide program consistency, ConocoPhillips is reviewing an expansion of the U.S. program to all of its worldwide businesses. 

Sustainable Procurement Activities
Our global procurement services (GPS) group is contributing to our nine sustainable development commitments through strategic sourcing, inventory management, our Procure to Pay process, our contract system, recycling and reclamation, and improved energy and material efficiency programs. We are developing a GPS sustainable development position that will drive sustainable purchasing; this position will be communicated with internal stakeholders and suppliers. Finally, we are looking at tools to help these groups more easily consider and integrate sustainable development metrics in conducting their purchases and in evaluating our supply chains.