Sustainable supply chain driving our business

Working with our c. 3,500 suppliers and partners is key to achieve a stable, resilient and transparent supply chain and to ultimately improve the global ESG path.

To achieve our ambition, Galp is focused on the following drivers:

  • ESG as primary criteria for managing all our suppliers
  • Act for change, together with our suppliers

Galp is engaging with suppliers to share, act and cascade on its own supply chain to our Code of Ethics and Conduct and to the fundamental principles of the Sustainable Procurement Policy, updated in 2022:

  • Respect for human rights and working conditions
  • Acting with transparency and integrity
  • Assume quality as a critical success factor
  • Protection of the environment, people, and assets

The relationship with our business partners is built on known policies, codes and practices, aligned with the highest ethical, social, environmental, and quality standards. Besides including sustainability criteria clauses in its purchase contracts, Galp also has processes in place to assess and manage the ESG risks of the supply chain.

ESG as primary criteria for managing all our suppliers

Sustainability is embedded into every step of the procurement process. We have developed a supply chain programme (supported by Supply4Galp platform) that makes it possible to better evaluate our value chain, from registration and qualification to contracts and monitoring.


We are conducting a sustainable supply chain program, initially targeting strategic suppliers and involving collaboration across various teams within the Organisation. The program aims to strengthen our path towards a responsible and transparent supply chain, and is currently focused on three key priorities:

  • Enhancing our understanding of Galp’s supply chain ecosystem
  • Updating and reinforcing ESG criteria integrated throughout the supply chain process
  • Improving the ESG assessment phase within the supply chain

This program will increase the effectiveness of our process and better address current and potential ESG-related risks and opportunities in the supply chain. We also anticipate that it will spur on our suppliers to advance their ESG practices even further.

Risk management in the supply chain

Galp has a risk management methodology that involves distinct stages, namely the process of selection, qualification and performance assessment of our suppliers of goods or services.

With the objective of better managing our supply chain and the inherent risks associated to it, Galp tender qualification process and risk assessment procedures have improved significantly. By including a reference supplier evaluation platform connected with our Procurement platform: Supply4Galp, resulting in a more automatic, integrated, and agile process. GDPR and Cybersecurity risk are managed through One Trust platform, connected, with S4G and automatized, for tender processes containing such risks, as well as action plans to mitigate such risks. Compliance assessments, prior to the contracting of suppliers, with the objective of identifying potential red flags, corruption, money laundering, in accordance with law requirements of KYS and due diligence.

The new hybrid model which combines financial and non-financial information available in the market, the one provided by our partners, the available knowledge in our systems and the introduction of risk levels into the stratification model, means greater scope in monitoring several risk areas in our supply chain, namely ESG, Cybersecurity, GDPR, Business Continuity and HSE.

Risk is managed in the supply chain through several practices, namely:

  • Assessing the supplier’s financial strength in the qualification process and in the procurement processes, whenever justified
  • Monitoring information on the supplier's economic situation
  • Tender qualification and evaluation of suppliers for services with risk in HSE, cybersecurity, GDPR and business continuity framed within the risks associated with each procurement process
  • Audit and evaluation of services rendered in terms of ESG
  • Conducting questionnaires, through S4G procurement platform, Procurement Catalyst and Achilles, on social risks (mandatory for new suppliers)

ESG Survey

All our suppliers receive a survey with ESG criteria that will contribute to their overall qualification. Our survey is divided in different topics covering matters such as:

  • Assuring that our suppliers have their own Code of Conduct
  • Stakeholders Engagement (e.g., community investment, diversity inclusion programs, work-life balance)
  • Energy and Environmental Management (e.g., environmental goals and action plans to achieve them)
  • Supply chain (e.g., purchasing policy, ethics, environment, safety, quality, and social requirements)
  • Communication and Transparency (e.g., channels to transparently provide their information)
  • Safety and Health (e.g., certifications, health and safety policy, training, number of work accidents)
  • Environment (e.g., certifications, training, performance monitoring, ecoefficiency procedure, biodiversity areas, ecological materials)
Galp will reinforce its ESG supply chain assessments, working with specialized entities as a complement of its supplier’s evaluation and decision process.

Continuous monitoring of supplier performance

In addition to our risk management practices and monitoring of the certifications in the supply chain, we conduct audits to suppliers or potential suppliers in the following areas:

  • Financial
  • Technical
  • Corporate social responsibility
  • Safety & Health
  • Environment
  • Business continuity
  • Contract SLA

These audits may be requested on suppliers in any activity corresponding to the qualification process and are based on previously defined requirements and comply with the applicable law in their respective geographies. Also, suppliers may voluntarily request an audit to their company.

Selection criteria for suppliers to be audited:

  • The need to deepen the knowledge about a company that provides a certain category of procurement
  • When there are doubts concerning an answer given by a company in the pre-qualification questionnaire, and we seek evidence thereof
  • Significantly negative progress of a supplier's performance assessment
  • When there are complaints to suppliers for non-compliance with technical specifications and contractually defined requirements
  • When the degree of contract risk in the HSE aspects exceeds the supplier's HSE risk level, either for ongoing consultation processes or for awards already made and whose supplying services are still ongoing
  • Significant turnover of the supplier

Galp performs regular audits of our tier 1 suppliers. These audits take into account the relevant legislation in the country where they were carried out. If a substantial issue is detected during an audit, Galp ensures that the supplier develops and implements a corrective action plan.

Galp’s target for 2023 was to conduct 60 on-site audits of suppliers. This was clearly exceeded as there were 72 on-site audits. For 2024, the target is to maintain 60 on-site audits.

We also seek to promote local development and prioritise contracts with local products and services – around 75% of our total procurement is locally-based.

Galp engaged with 3,574 suppliers of 1,109 of which were tier-1 suppliers and 523 critical1 suppliers.

1Critical suppliers are suppliers that fall into at least one of these criteria: > € 250k, with HSE, cyber-security, GDPR or business continuity risks; non-replaceable suppliers, suppliers of goods or services whose failure to supply or continue operations may affect the Galp Group’s activities, in areas such as legal compliance and the safety of people, assets and the environment.


In 2023, Galp made a total of € 1,022 million of purchases, distributed by 3,574 suppliers, of which 1,109 correspond to Tier 1 suppliers (suppliers with contracts exceeding €50 k).

  2020 2021 2022 2023
Suppliers (no.) 2,814 2,568 3,196 3,574
Purchase volume (€m) 543 492 673 1,022


At Galp, we continuously monitor the performance of our suppliers, service providers and other business partners.

Percentage of suppliers assessed

  2021 2022 2023
Tier 1 88% 93% 95%
Critical Non-Tier 1 90% 88% 91%


Percentage of suppliers assessed in the last 3 years

Over the past three years, 96% of Tier 1 suppliers have undergone assessments to evaluate their exposure to sustainability risks, exceeding the target. This trend demonstrates a steady rise in the number of suppliers assessed since 2021.

  2021 2022 2023 Target
Tier 1 88% 95% 96% 95%
Critical Non-Tier 1 90% 81% 91% 95%


Galp values suppliers who hold certifications in internationally recognized standards, as it considers them a guarantee of its commitment to consistently improve its sustainability performance. The number of certified suppliers has consistently risen since 2021. Added to this, in 2023, 10% of Galp’s critical tier 1 suppliers audited were certified.

ISO 9001 2,931 2,426 2,643 3,024
ISO 14001 1,640 1,389 1,540 1,808
OHSHAS 18001/ISO 45001 1,678 1,387 1,525 1,757
Other certifications 1,887 366 497 699

Act for change, together with our suppliers

We are confident in our ability to actively challenge our suppliers to improve their sustainability practices and enhance their sustainability path.

Corporate procurement initiatives

As part of our sustainability journey, particularly in the context of the supply chain dimension, our Global Procurement & Contracts team organised several initiatives, including a Convention called "2023 Procurement Bloom" on November 29-30th. This event addressed “Trust, Innovation and Partnerships”, as key success factors for coming year. Our Business Units and Corporate Center had the opportunity to exchange and align perspectives, learn from external experts, and strengthen bonds.

Relevant information and supporting materials are available on the Galp Global Procurement website, Supply4Galp.