Climate Change Data

Environmental Metrics

ESG Focus Areas

• Good Governance
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• Reduced diesel consumption by 104.7%
• Reduced water consumption by 10.3%
• Reduced hazardous waste generation by 21.9% and recycled 62.6% of it
• Recycled 64.4% of non-hazardous waste
• Achieved an A- rating in the CDP Supplier Engagement Rating (SER) for climate change, exceeding sector and global averages.

Social Achievements

• Provided 57,786 training hours (+17% over 2021), averaging 21.9 hours per employee
• Maintained 86% permanent contracts
• 25% of staff are women
• 80% of purchases from local providers
• Zero reports of human rights violations
• First Global Family Day event

Governance Achievements

• Launched the Internal Control over Financial Reporting System (ICFR) project
• Launched a climate change risk assessment project aligned with TCFD recommendations
• Implemented a risk management system across regions
• Completed a gap analysis of ISO 37001 compliance with excellent results
• Approved an internal procedure for related-party transactions

Climate Goals & Targets

Environmental Challenges

• Geopolitical risks
• Sustainable supply chain management
• Rising raw material prices and supply chain disruptions leading to high inflation
• Rising interest rates and currency market volatility
• Changing customer demands and increasing environmental/sustainability regulations
• Cybersecurity and compliance risks
• Attracting and retaining talent
• High staff turnover in certain regions (Mexico and Turkey)

Mitigation Strategies

• Implementation of a risk management system
• Multi-year projects for ICFR and TCFD
• Focus on front-line management
• Strengthening supply chain resilience
• Talent development and retention programs
• Flexibility and work-life balance measures
• Work disconnection policy

Supply Chain Management

Supplier Audits: 100% of suppliers assessed

Responsible Procurement

• Environmental, safety, and social responsibility criteria in supplier evaluation
• Commitment to human rights, fair wages, working hours, and no forced/child labor
• Respect for the environment and compliance with local laws
• Sustainable sourcing of materials
• Conflict-free minerals sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Sea level rise
• Reduced water availability
• Loss of biodiversity
• Changes in land and soil productivity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy integration

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, IEC 62443

Third-party Assurance: Ernst & Young, S.L.

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Arteche's initiatives contribute to these goals through various programs and actions related to education, gender equality, renewable energy, economic growth, innovation, sustainable cities, responsible consumption, and climate action.

Sustainable Products & Innovation

• Products with organic biodegradable insulating fluids
• Eco-designed products and packaging

Awards & Recognition

• A- rating in CDP SER
• Award for the most sustainable family company in the energy sector (Forbes-Credit Suisse)
• Sustainable Competitiveness Award in Transparency and Good Governance category (BBK-EL CORREO)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Diversity & Inclusion
• Corporate Governance
• Human Rights
• Supply Chain Responsibility

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 39.3% vs 2021
• Increased renewable energy consumption to 33.8% (+19% vs 2022)
• Recycled 57.8% (+8% vs 2022) of hazardous and non-hazardous waste
• Launched ZEPAS (Zero Emission Portable Auxiliary Source)
• Developed world’s first transformer over 400 kV with eco gas insulation
• BIOAT project to replace conventional mineral dielectric fluid with a biodegradable one in instrument transformers

Social Achievements

• Increased women in the workforce to 26% (+1% vs 2022)
• Increased women in management positions to 28.1% (+0.3% vs 2022)
• Increased hours of training per person to 26.14h (+19% vs 2022)
• Implemented various work-life balance programs
• Launched Sumando Energías Solidarity Race

Governance Achievements

• Incorporated a new independent director, increasing Board diversity
• Revised internal regulations, approving an Investment Policy, a Directors’ Remuneration Policy, and a Policy for the recruitment of directors and diversity on the Board of Directors
• Continued implementation of the Internal Control over Financial Reporting System (ICFR)
• Continued climate change risk assessment project following TCFD recommendations
• Integrated Compliance & Sustainability Officer into the Management Committee

Climate Goals & Targets

Environmental Challenges

• Changing customer trends towards more sustainable products
• Managing the impact of organic and inorganic growth on the supply chain and operations
• Impact of geopolitical risks on supply chains and material costs
• High interest rates and risks in certain hyper-inflationary economies
• Regulatory risks from sustainability regulations
• Attracting and developing talent
• Increased levels of turnover
• Cybersecurity and compliance risks

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented risk management system to regions and management of risk indicators
• Incorporated ESG risks into overall risk management system
• Developed actions and controls to mitigate risks
• Implemented training programs
• Incorporated annual targets on specific sustainability indices in financial agreements

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct requiring compliance with laws and regulations, respect for human rights, fair wages and working hours, no forced or child labor, respect for the environment, and conflict-free minerals

Climate-Related Risks & Opportunities

Physical Risks

• Storms
• Floods
• Fires
• Heat waves
• Sea level rise
• Reduced water availability
• Loss of biodiversity
• Changes in land and soil productivity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Access to sustainable financing
• Market differentiation through strong corporate values
• Entry into new markets through climate change mitigation and adaptation products

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, EU Taxonomy

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

Arteche's initiatives contribute to these goals through the development of sustainable energy solutions, promotion of innovation, and reduction of greenhouse gas emissions.

Sustainable Products & Innovation

• ZEPAS
• SF6-free transformer
• Transformer with biodegradable oil
• High-voltage current transformer with reduced carbon footprint

Awards & Recognition

• Trophées Fournisseurs of RTE (best supplier)
• Grand Atlas Award for Export 2022 from DHL
• Nominations for Innovation Star in the Small and Mid Cap Awards of the European stock exchanges