Procurement

MOL Group is committed to implement the principle of „product stewardship” on the highest level in its procurement processes through the quality and parameters of the purchased products and services. Consequently, the purchased products should satisfy the strictest quality criteria.

Sustainability in the supply chain of MOL Group

MOL
Group
Impact

  • Total number of suppliers at group level: 25,713
  • Contracts with local suppliers in E&P international in 2017: EUR 46 million
  • Number of hours worked by outsourced filling station staff in 2017: 21.9 million
  • Number of houers worked by contractors of MOL Group in 2017: 31.4 million

Divisions

E & P

Refining &
Petchem

Logistics

Retail

Key
suppliers

Drilling,
well services,
maintenance

Crude supply,
Maintenance

Transportation

Fuel stations,
non-fuel
suppliers

Sustaina-
bility
impacts

Health&Safety,
Labour
practices,
Economic
impacts

HSE

Road safety,
fuel efficiency

Labour practices

 
 
 
 
 
 
 
 
 
 

The Procurement organisation is responsible for securing the high quality services, on the expected high levels, for MOL Group units, as internal clients. The Procurement organisation was designed and established in such away that it can give efficient support to the Group in implementing this function: every procurement category is rendered to a senior or leading procurement officer, and he is responsible for all procurement transactions in a given area and manages and controls the works of sub-ordinate procurement officers, thus facilitating the most favourable technical and business terms and conditions for MOL.

This structure can ensure the required degree of transparency, efficiency and dynamism in respect of reactions onto market conditions.

1. Suppliers Relations Management:

We have launched and rolled out new initiatives on the past 1-2 years in MOL aiming at further developing cooperation with suppliers and facilitating the implementation of MOL’s efforts related to sustainable development. We have the following key initiatives:

  • We will prepare a standard criteria system for activities with risk exposure. We wish to ensure trouble-free cooperation and to filter out incompetent suppliers prior to the selection process, thus we will hold a preliminary control of the relevant compliance criteria.
  • Development of the HSE criteria system and ensuring compliance with such criteria in MOL for suppliers offering services for HSE-critical operations (pre-contracting competence analysis, and on-site audit held during the delivery of supplier’s services).
  • Further development of the presently applied suppliers’ evaluation system, including that this evaluation system will be supplemented with HSE criteria. With this we will support the successful development of suppliers’ performance in the area of HSE-based expectations.
  • We will organise annual Suppliers Forum for our potential suppliers, where two-way communication will be secured, in addition to presenting MOL expectations.

2. Local suppliers

MOL at present does not have a general guideline which sets out statutory rules for applying local suppliers in areas of major operations (Hungary, Slovakia, Romania, Austria, Croatia, and Serbia). However, existing technology, license (e.g. in IT services) or non-stop availability (e.g. for maintenance materials) may require contracting of local suppliers.

Ratio of local suppliers* in the countries mentioned above is nearly 80% of the total non-hydrocarbon procurement value.

*Suppliers registered in the given country

3. Business Partner Ethics

Responsible Supply Chain

MOL Group as a multinational company enters into relationships and conduct business with thousands of suppliers from more than 40 countries. We are committed to build and maintain a responsible and sustainable supply chain, that’s why our interactions with our suppliers are based on compliance with all relevant laws and regulations and the highest ethics standards. We support our suppliers to comply with them, and they are required to behave in a responsible and sustainable manner.

We particularly emphasize

  • to avoid and prohibit corrupt practices in all circumstances, whether in dealings with government officials or representatives of the private sector,
  • to respect the human rights of others and to condemn human rights abuses in any form,
  • to comply with the relevant health, safety and environmental protection laws, legal and MOL Group regulations,
  • to comply with the norms of fair competition.

We ask of our suppliers

to get acquainted with MOL Group’s ethical standards and follow these requirements all times, and extend them to their own supply chain. Please, find the detailed norms in MOL Group Code of Ethics and Business Conduct, the most important requirements for suppliers in the Business Partner Code of Ethics. We expect partners to immediately inform MOL Group on a breach of the Code of Ethics and Business Conduct and the implementation of corrective actions regarding any activity performed in connection with MOL Group operations.

to demonstrate – in proportion to size, complexity and risk environment – efforts in upholding these principles by having adequate compliance measures in place, i.e. own code of conduct/ethics, policy or other type of management commitment and means to uphold it. To support our partners in this, we publish a free Template Code which can be used and tailored to create and implement own Codes, and should be disclosed publicly and rolled out to own employees and business partners.

If the Business Partners Code of Ethics is permanently or substantially breached

in course of operation of our partners (i.e. by own employee conduct or by their suppliers or sub-contractors, intermediaries, proxies or agents), MOL Group reserves the right to apply corrective measures up to and including termination of business co-operation in accordance with the applicable law. Such breach can be determined in accordance with the principles stated in the MOL Group Ethics Council Rules of Procedure (Appendix of the MOL Group Code of Ethics and Business Conduct) by MOL Group Ethics Council.

If non-compliance or breach emerge, our partners shall co-operate in clarification. As part of this co-operation MOL Group companies participating in the clarification may ask for verification and if there is a reason for concern, for corrective measures by the following means:

  • Self-Assessment: e.g. fill in a questionnaire, conduct internal investigation or solicit information from a third party, e.g. a data provider or public information on compliance.
  • Certifications/Statements: e.g. certification or statement confirming compliance.
  • On-Site Audits: MOL Group or a third party acting on MOL Group’s behalf may contact business partners and ask for permission to verify compliance on site.