Our Suppliers

Business integrity, safety and environmental stewardship are some of our main priorities. Pioneer recognizes there are inherent risks when working with third-party suppliers, and we strive to work with companies that share our high standards and values. In a continued effort to mitigate risks, Pioneer policies, programs and goals are communicated to suppliers starting with their initial set-up as a Pioneer service provider and reinforced through ongoing performance management conversations.

Aligning our Values

Pioneer conducts its operations in a manner that seeks to protect business integrity, individual safety and our environment; we expect our suppliers to do the same. Pioneer has developed a set of policies to help drive this alignment.

• Sustainable Procurement Commitment – Outlines standards for assessing suppliers’ commitment to sustainability, ESG and corporate social responsibility
• Supplier Code of Conduct – Aligns with and complements Pioneer’s Code of Business Conduct and Ethics and provides additional clarity to our suppliers regarding: values, human rights, sustainability, compliance, anticorruption and antibribery, conflicts of interest, and safety and environmental considerations
• Supplier Diversity Commitment – Defines the criteria to be recognized as a “diverse suppler” and expands our supplier base by increasing partnerships with diverse suppliers to collaboratively strengthen our communities
  • In 2022, Pioneer spent $155 million with our diverse suppliers, and we plan to continue this investment in the future
• Additionally, we developed a standard Master Service and Sales Agreement that contractually obligates our suppliers to comply with our Code of Business Conduct and Ethics, including our Human Rights Policy and Human Rights Commitment

Pioneer Actions:

• Commitment to train Supply Chain Management staff to understand and communicate a focus on sustainability and related policies and encourage our suppliers to have their own sustainable procurement commitment
• Commitment to assess major suppliers through an extensive prequalification process based on the specific work type
• Conduct quarterly evaluations with suppliers on KPIs, such as safety, cost, performance and ESG
• Conduct supplier audits at least once every three years, or more frequently at our discretion, to verify compliance with our policies and expectations. Performance improvement plans will be instituted for any suppliers not meeting our expectations
• Utilize risk mapping and ESG assessments of our critical supply base to monitor risk and progress
• Host a Supplier Relationship Management program to assist in identifying supplier strengths and areas of opportunity

Supplier Actions:

• Pioneer standard sourcing and contract templates include suppliers’ obligations to participate in contractor safety meetings, provide root cause analysis and perform thorough HSE reporting.
• Suppliers are expected to keep accurate and detailed books and records relating to goods and services provided to Pioneer. These books and records shall be made available to Pioneer for audits.
• Suppliers are expected to share our goals of corporate sustainability, diversity and social responsibility.

We champion collaboration and continuous improvement alongside our business partners and work upfront with suppliers to set expectations, ensure accountability and aid innovation.

Supplier Onboarding

Pioneer is continuing to onboard our suppliers to EcoVadis, a widely accepted ESG and Business Sustainability rating platform.

We have integrated an ESG component into our standard contract award process, and our decision matrix scorecard includes ESG grading as a component to a bidder’s overall score. EcoVadis helps us inform our sustainability risk mapping by providing an unbiased baseline that enables collaboration between Pioneer and our suppliers. The supplier scores provided by EcoVadis are utilized by our Supply Chain Management team when awarding work as part of our Supplier Relationship Management program.

Supplier Diversity Commitment

Pioneer continually seeks to do business with suppliers who align with our high standards of safety, environmental and operational performance, ESG-related commitments, and our RESPECT values. In 2022, 25% of our Supply Chain Management managed spend was attributed to suppliers based in the Permian Basin. Additionally, 85% of our Supply Chain Management managed spend was attributed to suppliers headquartered in Texas or whose goods are manufactured in-state. As a company, we recognize the importance of supporting the local community by using suppliers critical to providing employment in the region. Pioneer values our relationship with a diverse set of suppliers.

Emphasizing Sustainable Procurement

Pioneer works with suppliers to find new ways to reduce environmental impact and risk, while creating more sustainable operations. In many cases, we have achieved these goals through automation, improved technology and a focus on the overall economics and engineering of a given project. Our Supply Chain Management sourcing team has been trained on Pioneer’s sustainable procurement policies. Our Supply Chain Management employees collaborate with other departments to seek innovative solutions to reduce waste and realize potential cost savings. For example, Pioneer has, through collaboration between departments, developed multiple equipment reuse programs, including test separators, electronic submersible pump equipment, valves and wellheads – resulting in a total reuse savings of $52 million in 2022. Another success story comes from collaboration between Supply Chain and Drilling, where a casing thread protector recycling program was developed in September 2021. Since its inception, 3 million pounds of plastics have been diverted to this innovative recycling program. In 2022, Pioneer began sourcing a portion of our sand supply from localized sand mines, which reduces truck count, miles driven and resulting GHG emissions due to their closer proximity to the wells supplied. In 2022, Pioneer reduced approximately 1.8 million miles of sand trucking by using sand from a local mine on 28 wells.

For additional Supply Chain information, visit PXD.com > Operations and Innovation > Suppliers.