Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Occupational Health and Safety
• Social Value Creation

Environmental Achievements

• Reduced CO2e emissions by 6.47% to 62,322.2 tonnes (from 66,632 tonnes in 2017).
• Renewable power generation at Celeo's photovoltaic plants and Enerfín's wind farms resulted in savings of 495,500 tCO2 equivalent.
• Sent 15,945.460 tonnes of waste to recycling stations, avoiding the emission of 11,922 tonnes of CO2e.

Social Achievements

• Launched "Excellence in Safety" and "Talent" programs.
• Improved Injury Frequency Index to 4.6 from 8.5 in 2017 and Serious Injury Index to 0.16 from 0.46 in 2017.
• 46 internal promotion processes via the eTalent platform, of which 20% were covered by company employees.
• Increased permanent contracts to 60% from 55% in 2017.
• Various social projects through the Elecnor Foundation in Spain, Honduras, the Dominican Republic, Ghana, Chile, Uruguay, Angola, Nicaragua, and Cameroon.

Governance Achievements

• Achieved ISO 37001 certification for its anti-bribery management systems.
• Achieved UNE 19601 certification on criminal compliance management systems.
• Appointed a second Independent female Director to the Board.

Climate Goals & Targets

Environmental Challenges

• Currency depreciation in Brazil, the US, and Chile impacting sales.
• Increased competition in transmission tenders leading to narrow margins.
• Uncertainty in Brazil due to the new government's reforms.
• High level of competition in the maintenance market based on price.
• Budgetary constraints and political situation in Spain impacting public works projects.

Mitigation Strategies

• Strict debt control (reduced net corporate debt by 38%).
• Diversification of financing sources.
• Focus on profitable growth, internationalization, and operational excellence.
• Emphasis on service quality as a distinguishing factor in the maintenance market.
• Intense order intake during the first half of the year to meet production targets.

Supply Chain Management

Supplier Audits: 231 new suppliers approved in 2018; 32 suppliers reassessed.

Responsible Procurement

• Quality, Environment, Energy Management, Occupational Health and Safety, Compliance, R&D&i documents required from important suppliers.
• Code of Ethics requirements for suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 50001:2011, ISO 37001, UNE 19601

Third-party Assurance: Independent expert

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 4 (Quality education)
• Goal 8 (Decent work and economic growth)

Elecnor's projects and initiatives contribute to these goals through renewable energy development, climate change mitigation, social infrastructure projects, and job creation.

Awards & Recognition

• 5th Edition of the Internationalisation and Development Awards (COFIDES)
• Award for the Contracting Company with the Best Preventive Culture Rate (Almaraz Nuclear Power Plant)
• Forbes magazine's list of Spain's top 50 CEOs (Rafael Martín de Bustamante)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance

Environmental Achievements

• Obtained the “Calculo y Reduzco” seal awarded by the Spanish Office for Climate Change (OECC).
• Upholding the score of A- in the Carbon Disclosure Project (CDP), positioning the Group at the highest level in terms of sustainability, adaptation and mitigation of the impact of climate change.
• Established corporate emission reduction targets in line with science, approved by the Science Based Targets (SBTi) initiative.

Social Achievements

• Increased workforce by 917 (4.28%) to 22,348 employees.
• Commitment to zero accidents and zero tolerance to non-compliances with preventive measures.
• Various policies published on websites and intranet, including Sustainability Policy, Anti-Corruption Policy, Human Rights Policy, Equality Plan.

Governance Achievements

• Sustainability Committee met on 5 occasions.
• Board of Directors approved initiatives of the Elecnor Group’s Sustainability Strategy.
• Appointments, Remuneration and Sustainability Committee oversees ESG actions and policies.

Climate Goals & Targets

Environmental Challenges

• Increased global inflation impacting material and labor costs.
• Fluctuations in energy prices and oil prices.
• Regulatory risk affecting renewable energy.

Mitigation Strategies

• Hedging strategies for energy prices and exchange rates.
• Analysis of risks related to increased prices of materials consumed and labor costs.
• Close monitoring of regulatory risk affecting renewable energy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, UNE 166002

Third-party Assurance: AENOR

UN Sustainable Development Goals

• Goal 13

Elecnor fosters sustainable activity adapted to climate conditions and with the involvement of all persons belonging to the Group.

Awards & Recognition

• A- score in CDP
• “Calculo y Reduzco” seal

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Human Resources

Environmental Achievements

• Upholding an A- score from the CDP, positioning the Group at the highest level in sustainability, adaptation and mitigation of climate change impact.
• Joined the Science Based Targets (SBTi) initiative, establishing corporate emission reduction targets aligned with science.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased cost estimates for some Australian contracts due to Covid-19 delays and global economic instability (rising raw material prices, labor costs, logistics, and inflation).
• Potential penalties and other contingencies from project execution, mainly abroad.

Mitigation Strategies

• Seeking collaborative solutions with customers to maintain strategically important Australian projects.
• Booking provisions to cover potential penalties and contingencies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol, TCFD

Certifications: ISO 14001:2015, ISO 50001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Elecnor contributes to Goal 13 through renewable energy generation, energy efficiency, water, and environmental activities, and by reducing its carbon footprint.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Calculo y Reduzco seal (Spanish Office for Climate Change)