Approach to Supply Chain
Equitrans attributes part of our success to the dedication and performance of our supply chain, including all third-party providers involved in our business such as contractors, vendors, and suppliers. When selecting a provider, Equitrans involves organizations from the local operating area and also seeks those groups with diverse ownership backgrounds. We believe the perspectives obtained through the inclusion of companies with varying backgrounds in our supply chain positions us as a more effective business, capable of impacting a wider range of communities. Additionally, a diverse supply chain helps to drive innovation, safety, and economic value for the minority and local communities in which we engage.
Similar to our employees, we strive to give voice and value to minority and locally owned businesses. We select and manage third-party organizations that believe in and abide by Equitrans’ Core Values and respect for human rights. We also prioritize suppliers that focus on safety performance and compliance, diversity and inclusion, and environmental stewardship.
Supply Chain Integrity & Ethics
Prior to entering into a contract, Equitrans provides suppliers with our Code of Business Conduct & Ethics (Code) to ensure our standards and expectations are clear. Our Code details Equitrans’ standards on ethical behavior and actions as well as resources to address any Code questions or concerns. In 2020, Equitrans utilized a total of 1,119 suppliers, with 847 of those suppliers having received an annual compliance letter from our Legal and Compliance team. The list of supplier recipients is based on certain criteria, such as excluding suppliers with a spend of less than $10,000 and/or law firms that must follow their own Code of Conduct as part of their licensing. Our letter refreshes suppliers on Code obligations and standards when operating on Equitrans sites.
Should an instance of non-compliance with our Code occur, Equitrans’ Compliance Network undergoes an investigation to identify the root cause. Our Compliance Network responsibilities include ensuring conformity with laws, regulations, and our Code in all areas of our business. Suppliers who are non-compliant with Equitrans’ requirements are subject to immediate remedial action or contract termination. In 2020, Equitrans terminated 50% of our contracts with firms whose labor payment practices were identified as having a negative social impact. The remaining balance of the contracted firms successfully remediated deficiencies and achieved compliance with Equitrans’ standards.
Diversity in Our Supply Chain
Equitrans encourages diversity and inclusion through all areas of our organization, including our supply chain. We know a diverse blend of sourced providers helps to better the overall economy and improve the well-being of our local suppliers and communities. Equitrans defines a local supplier as any materials or service provider who receives payment in one of our primary operating states of Pennsylvania, West Virginia, or Ohio. When sourcing a product or service, Equitrans accentuates the inclusion of local suppliers as we look to reduce our environmental footprint and gain valuable insight in the operating area’s culture. Local suppliers reduce our environmental footprint by providing Equitrans with local natural resources and technology.
We also look to include diverse-owned organizations, when feasible. Since 2018, Equitrans’ share of expenditures awarded to minority-, women-, and veteran-owned businesses has steadily increased year-over-year, and we will continue to seek opportunities to build on our existing supplier base while establishing new relationships with diverse suppliers. Further diversification of our supply chain allows us to positively impact the environmental, social, and governance (ESG) criteria on which Equitrans focuses in all aspects of our business.
Evaluating Our Supply Chain
Equitrans manages and selects suppliers based on ability to follow Equitrans Code, standards, safety, and ESG best practices. Equitrans does not tolerate non-compliant suppliers. Should Equitrans find a compliance issue, we work diligently with the provider to resolve and reestablish compliance. If resolution cannot be obtained, Equitrans will terminate the supplier contract, as we take our Code and safety standards seriously and expect all contractors and suppliers to uphold our values. Equitrans tracks, analyzes, and reviews supply chain data on a routine basis to identify gaps and areas of improvement, and we continue to identify ways to increase diversity in our sourcing activities.
Approach to Human Rights
At Equitrans Midstream, upholding human rights is critical for creating sustainable value for our Company and the communities in which we operate, and we are committed to safeguarding dignity and respect for all people throughout our value chain. We recognize that the nature of our business activities and existing operational footprint do not generally encounter a significant risk of negatively impacting the basic principles of human rights. Regardless, this does not diminish our commitment to respect human rights in all our actions with employees, local communities, customers, and other stakeholders.
Equitrans promotes the preservation of human rights through:
- Promoting inclusion
- Having zero tolerance for discrimination
- Protecting employees’ rights to form unions and collectively bargain
- Prohibiting the use of modern slavery, human trafficking, forced labor, and child labor
- Guaranteeing fair work hours, compensation, and benefits
We will conduct appropriate due diligence to ensure we maintain that commitment and strive to create open channels of communication with anyone potentially impacted by our activities. For more details regarding our commitment to human rights, please see our Human Rights Policy.