Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Argentina's economic instability and potential for government intervention.
• Inflation's impact on costs and ability to adjust tariffs.
• Questionable credibility of Argentine economic indices.
• Argentina's limited access to international financing.
• Significant fluctuations in the Argentine Peso's value.
• Potential for social unrest and government responses.
• Government measures to reduce imports.
• Government intervention in the electricity sector.
• Electricity transmission constraints.
• Difficulty collecting payments from CAMMESA.
• Dependence on natural gas supply for thermal plants.
• Potential for poor hydrological conditions affecting hydroelectric plants.
• Operational difficulties limiting electricity generation.
• Potential loss of controlling interest in HINISA.
• Third-party claims on Piedra Buena's real property.
• Potential fines for Piedra Buena's lack of seawater concession.
• Difficulty renegotiating transmission tariffs.
• Potential disruptions to transmission capacity.
• Potential rejection of revenue redetermination requests by ENRE.
• Increasing competition in non-regulated transmission activities.
• High leverage of Transener.
• Incomplete legal transfer of properties for Transener and Transba.
• Difficulty adjusting distribution tariffs to reflect cost increases.
• Failure to negotiate tariff improvements for Edenor.
• Legal challenges to distribution tariffs.
• Energy shortages affecting electricity delivery.
• Fines and penalties for distribution business.
• Difficulty controlling energy losses in distribution.
• Potential foreclosure of Edenor's Class A shares.
• Potential default by the Argentine Government.
• Material labor liabilities from outsourcing.
• Limited attachment of Edenor's assets.
• Potential actions by EASA's creditors.
• Potential loss of exclusivity to distribute electricity.
• Challenges integrating EMDERSA and AESEBA acquisitions.
• Restrictions on capital movement out of Argentina.
• Limitations on ADS holders' ability to receive dividends.
• Fewer shareholder rights under Argentine law.
• Difficulties exercising voting rights for ADS holders.
• Potential shareholder liability for certain votes.

Mitigation Strategies

• Hedging currency risk by converting Pesos to US Dollars and investing outside Argentina.
• Negotiating agreements with partners and regulators.
• Seeking government approvals for acquisitions and divestitures.
• Implementing cost-cutting measures.
• Filing administrative and judicial claims to address tariff issues.
• Maintaining comprehensive insurance for facilities.
• Developing alternative sourcing strategies.
• Negotiating new collective bargaining agreements.
• Implementing measures to reduce energy losses.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Argentine GAAP

Third-party Assurance: Price Waterhouse & Co. S.R.L.

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Economic performance
• Environmental performance
• Social performance

Environmental Achievements

• Reduced greenhouse-gas emissions by -1.4% year-on-year.
• Reused 465,000 m3 of water.
• Achieved a greenhouse-gas intensity in power generation lower than the grid (0.39 tCO2/MWh vs 0.535 tCO2/MWh).
• Commissioned PEMC, a 100 MW wind farm, contributing renewable energy to the national grid.

Social Achievements

• Incorporated into Bloomberg’s Gender-Equality Index.
• Joined ByMA’s Sustainability Index and Corporate Governance Panel.
• Social investment reached more than 37,000 people with over AR$70 million investment.
• 39 vacant positions were filled internally.

Governance Achievements

• Joined ByMA’s +GC Panel for high corporate governance standards.
• Approved Compensation and Nomination Policies.
• Implemented an Integrity Program.

Climate Goals & Targets

Environmental Challenges

• Economic instability in Argentina.
• Gas demand deficit.
• Unstable gas price dynamics.
• Structural issues in the gas sector.

Mitigation Strategies

• Asset portfolio restructuring.
• Focus on power generation expansion and unconventional gas reserves development.
• De-risking plan for Vaca Muerta blocks.
• Coordination with subsidiary TGS for Vaca Muerta gas pipeline development and shale gas monetization.

Supply Chain Management

Supplier Audits: Annual external audits; monitoring process to minimize risks from contractor firms.

Responsible Procurement

• Supplier evaluation and selection process; consideration of environmental management issues in strategic contracts; implementation of SAP Ariba for procurement management.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy projects.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (environmental management), OHSAS 18001 (occupational health and safety management), ISO 9001 (quality management) in some assets, ISO 50001 (energy management) in CTGEBA

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Alignment with SDGs through various initiatives, including renewable energy projects, education programs, community investment, and responsible resource management.

Awards & Recognition

• Bloomberg Gender-Equality Index; ByMA’s Sustainability Index and Corporate Governance Panel; +GC Panel; CTGEBA’s ‘Technology Transmission’ award from EPRI.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Lower gas sales for power generation
• Drop in prices and volumes sold of hydrocarbons, petrochemical products and spot energy
• Extension of tariff freeze and beginning of the RTI renegotiation
• Access restrictions to the Single Free Foreign Exchange Market (MULC) and regulatory uncertainty

Mitigation Strategies

• Commissioning of new power generation units priced under PPA
• Plan Gas.Ar to promote Argentine natural gas production, reduce imports, and provide supply chain predictability
• Adherence to the unified dispatch of fuel supply agreements for thermal power plants
• Sale of controlling stake in Edenor to focus on power generation and unconventional natural gas reserves

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Renewable Energy
• Water Management
• Waste Management
• Biodiversity
• Human Capital
• Diversity & Inclusion
• Community Development
• Governance
• Ethics & Integrity
• Risk Management
• Supply Chain Sustainability

Environmental Achievements

• Reduced GHG emissions (scope 1 and 2) by 12.7%
• Increased recyclable non-hazardous waste to 26.1% of total waste
• Increased reused water by 11.1%
• Implemented ISO 55001 (Asset Management) certification across all power plants
• Progressed towards ISO 50001 (Energy Management) certification

Social Achievements

• Launched the Plurales Program to promote diversity and inclusion
• Implemented the Sumá Bienestar Program for employee well-being
• Continued the Young Talent Program with 11 new professionals and 97% retention rate
• Maintained a low employee turnover rate of 4.7%
• Provided 58,542 training hours

Governance Achievements

• Corporate Governance Code received a positive rating from the CNV for the second consecutive year
• Updated Code of Conduct
• Implemented a Business Risk Management Policy
• Strengthened cybersecurity measures

Climate Goals & Targets

Environmental Challenges

• Financing investments in renewable and efficient energy projects
• Macroeconomic and regulatory context
• Pandemic restrictions
• Climate change risks (emissions, water scarcity)
• Supply chain disruptions

Mitigation Strategies

• Issued first Green Bond
• Issued International Renewable Energy Certificates (IRECs)
• Implemented Plan Gas.Ar for natural gas production
• Implemented integrated management policy
• Developed alternative sourcing strategies
• Strengthened risk management processes
• Implemented COVID-19 prevention and mitigation protocols

Supply Chain Management

Supplier Audits: 115 suppliers assessed in 2021

Responsible Procurement

• Code of Conduct
• Inclusive Procurement Program
• Supplier environmental assessment
• QHSE requirements in contracts

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Expansion of renewable energy portfolio

Reporting Standards

Frameworks Used: GRI Standards (2016, Exhaustive), SASB Standards (Oil & Gas, Electric Utilities), UN Global Compact

Certifications: ISO 55001 (Asset Management), ISO 14001 (Environmental Management), ISO 45001 (Occupational Health and Safety), ISO 9001 (Quality Management)

Third-party Assurance: Price Waterhouse & Co. S.R.L. (Limited Assurance)

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Pampa's initiatives contribute to these goals through various programs in education, renewable energy, employment, community development, responsible resource management, climate action, biodiversity conservation, and partnerships.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Special mention in ACDE Enrique Shaw Award
• EIKON award for Financial or Investor Communications
• Award to the Best Electricity Company (Fortuna magazine)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented ISO 50001 certification in power generation, developing usage and consumption matrices to set atmospheric emissions reduction goals and use resources efficiently.
• In PGSM, implemented infrared-camera leak detection, reducing losses and improving work environment.

Social Achievements

• Accompaniment in Educational Paths Program recognized by CEADS, supporting 1,546 students.
• Labor placement training for 1,271 young students, including professional practices and workshops.

Governance Achievements

• Joined ByMA's +GC Panel, demonstrating commitment to best corporate governance practices.
• Implemented various corporate governance policies, including Integrity Program, Code of Conduct, and Policy against Fraud, Corruption and other Irregularities.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic context in Argentina, including high inflation and currency devaluation.
• Delays in payments from CAMMESA to generators and hydrocarbon producers.
• Pricing disparity between ‘new’ and legacy energy in power generation.

Mitigation Strategies

• Proactive liability management, including a successful exchange offer for notes maturing in 2023.
• Ongoing investment in power generation to handle record demand, focusing on renewable and highly productive thermal energy.
• Implementation of Plan Gas.Ar to increase natural gas production and reduce reliance on imports.

Supply Chain Management

Responsible Procurement

• Responsible Inclusive Purchases program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 55001, ISO 50001

UN Sustainable Development Goals

• SDG 4
• SDG 7
• SDG 8
• SDG 12
• SDG 17

Social investment initiatives aligned with SDGs 4, 7, 8, 12, and 17.

Awards & Recognition

• CEADS recognition for Accompaniment in Educational Paths Program