Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance

Social Achievements

• Implementation of gender diversity policies in the selection of board members, resulting in 20% female representation on the board and 43% among independent directors.

Governance Achievements

• Review and adaptation of Company Corporate Governance rules to the recommendations contained in the Unified Code of Good Governance.
• Establishment of an Audit and Compliance Committee and an Appointment, Compensation and Corporate Governance Committee.
• Annual assessment of the Board's operation and the quality of its work.
• Implementation of a policy for gradual and progressive renewal of independent directors.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Unified Code of Good Governance (CNMV)

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Governance

Environmental Achievements

• ISO14001 certification of centers and implementation module of legal environmental requirements in uncertified buildings
• Energy efficiency measures
• Green IT initiative
• Smart mobility

Social Achievements

• Promoting diversity and equality
• Women and leadership Program actions
• Increases their agreements with other companies for the effective integration of professionals with disabilities
• Procedures and applications for internal communication (Open Dialogs, My Questions, Indra Community…)
• Special training and development programs
• Junior training plan
• Technological reorientation plan

Governance Achievements

• Corporate Governance Report that complies with the transparency good practices recommendations
• Continual update of the compliance program
• Extension of the program to the international level, adapted to legal requirements and local characteristics
• Risk management system

Climate Goals & Targets

Environmental Challenges

• Improving data generation, aggregation, and consolidation systems to improve the quality of information presented in the Annual Report
• Improving Corporate Responsibility and Sustainability communication
• Improving the documentation for implementing responses and monitoring the feasibility of each action identified

Mitigation Strategies

• Working on improving its information systems
• Formalization of the process for developing the Sustainability Master Plan
• Formalization of the Plan will allow the implementation and adaptation of the corporate CSR policies in the countries where this is necessary
• Continuing the consultation process and making progress in including the value creation chain in the prioritization process, both internally and externally

Supply Chain Management

Responsible Procurement

• Supplier assessment and pre-approval
• Committee for monitoring risk situations detected in the supply base
• Supplier audits integrated with approval model
• Environmental assessment of suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (comprehensive option), AA1000 APS (2008), UN Global Compact, IIRC Framework

Certifications: ISO 14001

Third-party Assurance: KPMG Asesores, S.L.

Environmental Metrics

ESG Focus Areas

• Governance
• Talent Management
• Innovation
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• 3% Reduction in Hazardous Toner Waste in La Coruña and other certified centers.
• 3% Reduction in Electrical Energy Consumption in La Coruña and other certified centers.
• 3% Reduction in Paper/Cardboard Waste in Barcelona BPO and other certified centers.
• 3% Reduction in Paper Consumption in Erandio and other certified centers.
• 3% reduction in water consumption in Ferrol and other certified centers.
• 3% reduction in natural gas consumption in San Fernando de Henares and other certified centers.
• 3% reduction in hazardous waste: RAAE in Aranjuez and other certified centers.
• Separation of organic waste-packaging in Sevilla Caymasa and other certified centers.
• Reduction in energy consumption in Calle 96 Colombia and other certified centers.
• Waste reduction in Calle 96 Colombia and other certified centers.

Social Achievements

• Launched a flexible remuneration program in Spain, utilized by 42% of employees.
• Continued the Sumando Capacidades Internship Program in Spain, helping disabled students enter the job market (59 interns since 2010).
• Implemented new work-life balance measures in Colombia, including Indra +, flexible time and space, and Family Support.
• Continued measures aimed at achieving a work-life balance in Spain and Colombia.
• Implemented special training programs for high-potential employees in Chile and Colombia.
• Ran new editions of postgraduate courses for employees in Spain, in conjunction with the Polytechnic University of Madrid.
• Ran the third GeneSYS project in Spain to foster internal entrepreneurship (110 participants, 26 ideas generated).
• Held the second Internship Program in Chile for employees who make an outstanding contribution (65 employees benefited).

Governance Achievements

• 100% of Board of Directors scope in 2015.
• Improved its carbon footprint management and reduction of CO2 emissions (CDP score of 82 C).

Climate Goals & Targets

Environmental Challenges

• Non-compliance with environmental goals in several certified centers (e.g., Torrejón de Ardoz, Barakaldo, Ciudad Real).
• Data limitations in reporting certain social and human rights metrics.

Mitigation Strategies

• Reconsidering non-compliant environmental goals for the next year.
• Working to improve information systems to gather more comprehensive data.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• Listed on the Dow Jones World Sustainability Index (DJSI World) for the tenth year in a row.
• Entered the FTSE4Good Index.
• Named the company with the best reputation in the consulting sector by MERCO.
• Received an award at the 19th Human Capital Awards for Human Resources Management.
• Recognized as the most attractive business services company to work for in Spain by Randstad.
• Received the award for “Best performance in Communication management” by Pronoticias Group.
• Awarded the Silver Medal by ITECBAN CMD for its Door2Door digital solution.
• Received the Best Joint Marketing Award 2015 from Huawei.
• Named Architectural Excellence Security Partner of the Year by Cisco.
• Named one of the best partners in Spain at the Oracle Partner Executive Forum Awards.
• Received the Socially Responsible Company award in Mexico for the second year running.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Ethics and Compliance
• Shareholder and Investor Relations
• Client Relations
• Talent Management
• Supplier Relations
• Innovation
• Social Commitment
• Environmental Sustainability

Environmental Achievements

• Reduced GHG emissions per employee by 63% from 2013 to 2017 (exceeding the 26% target for 2020)
• 54% of electricity consumed in 2017 came from sources with net zero greenhouse gas emissions
• Reduced diesel fuel consumption by 36%, electricity consumption by 2.2%, and total energy consumption by 2% compared to 2016

Social Achievements

• Increased workforce by 17% in 2017 (mainly due to Tecnocom acquisition)
• Smart Start program recruited 664 young talents in Latin America and over 1700 in Spain
• Invested €1.5 million in social action initiatives
• 34% of workforce are women
• Won the Human Capital Prize granted by Wolters Kluwer in the Training and Development category
• Received the Codespa XIX Price in the Solidarity Company category for work done to improve social and employment integration of people with disabilities in Latin America

Governance Achievements

• Increased female presence on the Board of Directors
• Implemented a new specialized operational and organizational model to improve agility and strategic flexibility
• Updated the Criminal Risk Prevention Model
• Updated the Code of Ethics and Legal Compliance
• Maintained high attendance rates at Board and Committee meetings (92.30% for the Board)

Climate Goals & Targets

Environmental Challenges

• Significant challenges in meeting strategic and business objectives in a demanding market
• Cybersecurity risks
• Mismatch and tension in energy prices due to increased carbon restrictions
• Deterioration in facilities due to climate events
• Regulations imposing tariffs or reductions on emissions

Mitigation Strategies

• Implemented a 2018-2020 Strategic Plan focusing on operational specialization, product portfolio development, commercial transformation, and productivity improvement
• Strengthened cybersecurity protection and monitoring systems
• Improved energy efficiency of facilities and data processing centers
• Developed technology for forecasting and alerting regarding climate events
• Developed products and services to improve clients' operational efficiency and reduce emissions

Supply Chain Management

Supplier Audits: 40% of suppliers evaluated by environmental criteria (2017)

Responsible Procurement

• Indra's Code of Ethics and Legal Compliance
• 2017-2021 Production Subcontracting Plan
• Supplier Day
• Tender portal and Bid Module
• Supplier Management Model
• Environmental requirements for suppliers (REACH and RoHS)
• Occupational Health and Safety Procedures
• Clause on conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Deterioration in facilities and buildings due to climate events

Transition Risks

• Mismatch and tension in energy prices due to increased carbon restrictions
• Regulations imposing tariffs or reductions on emissions

Opportunities

• Improving energy efficiency of facilities
• Developing technology for forecasting climate events
• Developing products and services to reduce clients' emissions
• Developing information systems for carbon emission control and reporting

Reporting Standards

Frameworks Used: GRI Standards, AA1000 APS (2008 version), UN Global Compact

Certifications: ISO 9001:2015, ISO 14001, ISO 27001, UNE 166002:2014, CEN/TS 16555, CMMI level 3 and level 5, TMMi level 3

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16

Indra's products, services, and innovation contribute to various SDGs

Sustainable Products & Innovation

• City Landscape Manager
• InGrid Active Grid Management
• iTEC air traffic management system
• InShield DIRCM system
• SuitAir RAS platform
• Minsait IoT Platform Sofia2

Awards & Recognition

• Dow Jones Sustainability World Index (12 years)
• FTSE4Good Index (3 years)
• Oekom “Status Prime” rating
• MSCI ESG rating “A”
• 2017 PREVER award
• Integra Foundation Volunteering Prize
• 2017 enerTIC award
• Global Data Center Dynamics Award (DCD)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity
• Governance

Environmental Achievements

• 73% CO2 emissions reduction per employee since 2013 (scope 1 + 2)

Social Achievements

• 35% women on staff
• 82% local providers
• 31% women on the Board of Directors
• 92% professionals trained on Code of Ethics and Legal Compliance

Governance Achievements

• Commitment to set a science-based target through the Science Based Targets initiative

Climate Goals & Targets

Environmental Challenges

• High debt generating difficulties on external financing
• Ongoing deep operational issues
• Non-reliable analytical accounting and lack of control of onerous projects
• Profitability de-prioritization
• Lack of focus on cost efficiency
• Excessive risk assumption in commercial bids
• Some products at too early stage, generating onerous projects
• Contractual and legal conditions without enough self-protection
• Lack of focus and high risk assumed implementing excessively tailor-made solutions in international unfamiliar environments
• Weak control and risk management during projects execution

Mitigation Strategies

• Much more reliable balance sheet after write-offs
• Sustainable cash generation
• Healthy P&L and balance sheet
• Portfolio rationalisation and development of more standardised and packaged solutions
• Evolve proprietary products, strengthening our position in the Smart Transport market by taking them to the next technological step by gradually growing CapEx
• New organisation and team
• New governance model
• Improved commercial processes
• New commercial plans on existing clients and prioritised geographies
• Restructured organisation and new team already in charge
• New operational plan improving control and risk management
• Reduction of non-personnel expenses
• Internal processes improvement and new workplace model
• Capex investment reorientation and Balance Sheet adjustments

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Human Rights
• Supply Chain Sustainability
• Innovation

Environmental Achievements

• Reduced CO2 emissions by 26% vs. 2019
• Achieved 88% renewable energy globally in 2022 (100% in Spain)
• Reduced Scope 3 emissions by 25% vs. 2019
• Increased hazardous waste recycling rates to 78% in 2022 (Spain)

Social Achievements

• Narrowed the wage gap to 3%
• Increased percentage of women hired with STEM profiles
• Increased percentage of young women hired (aged 30 and below)
• More than 19,000 new hires in 2022 (34% women)
• Over 1 million hours of training provided

Governance Achievements

• Ranked #1 globally in sustainability for IT Services sector by DJSI for the second consecutive year
• Recognized as “Gold Class” by S&P Global Sustainability Yearbook for a third consecutive year
• A-List company for Climate Change action in the CDP index
• Inclusion in the Bloomberg Gender Equality Index
• Senior management incentives tied to ESG objectives
• 97% of professionals and 100% of suppliers trained in ethics and compliance
• 0 critical cybersecurity incidents
• 0 Human Rights complaints (forced labor, child labor, human trafficking)

Climate Goals & Targets

Environmental Challenges

• High inflation in Europe
• Geopolitical polarization and deglobalization
• Supply chain disruptions

Mitigation Strategies

• Improving operational efficiency
• Optimizing debt costs
• Wage restraint measures (compensated by non-monetary benefits)
• Diversifying supply chain
• Advance purchases of materials
• Developing local capacity through partnerships

Supply Chain Management

Supplier Audits: 70% of critical suppliers assessed using ESG criteria (2022)

Responsible Procurement

• Code of Ethics and Legal Compliance
• Supplier Sustainability Policy
• ESG risk assessment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, business disruptions

Transition Risks

• Stringent climate regulations, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation, TCFD recommendations

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 31000, ISO 37001 (several subsidiaries)

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

Indra's solutions and services contribute to these goals through various initiatives

Sustainable Products & Innovation

• Air traffic management systems
• Rail transport solutions
• Intelligent traffic systems
• Satellite communication systems
• Digitalization technologies

Awards & Recognition

• DJSI World Index #1 in IT Services (2021, 2022)
• S&P Global Sustainability Yearbook Gold Class (3 consecutive years)
• CDP A-List for Climate Change (2022)
• Bloomberg Gender-Equality Index (3 consecutive years)
• Top Employer Institute certification (Indra and Minsait)
• Generations Awards
• Stevie Awards

Environmental Metrics

ESG Focus Areas

• Corporate social responsibility
• Environment
• Diversity and integration
• Human Rights
• Combating corruption and bribery

Environmental Achievements

• Broad compliance with targets for the reduction of emissions and the use of renewable energy
• Indra’s Eco-design Pilot

Social Achievements

• Reduction of the gender pay gap at a global level
• Update to the Modern Slavery Statement
• Strengthening of the mechanisms used to manage ESG risk

Governance Achievements

• Approval by the Board of Directors of Information Security, Privacy and Intellectual Property Rights Policies
• Approval by the Board of Directors of the Health and Safety Policy, Environmental Policy and the update to Human Rights Policy

Climate Goals & Targets

Environmental Challenges

• Meeting the requirements of various ESG indices and complying with new EU Taxonomy and CSRD/CSDD Directives

Mitigation Strategies

• Continuous monitoring of performance on indices (DJSI, FTSE4Good, Sustainalytics, ISS, MSCI, CDP), implementation of new policies, and preparation for new regulations

Supply Chain Management

Responsible Procurement

• Updated annual declaration against slavery and people trafficking covering the Company’s own operations and its supply chain

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy

Third-party Assurance: Deloitte