Climate Change Data

Environmental Metrics

ESG Focus Areas

• Equal opportunities
• Access to clean and modern energy sources
• Inclusive and sustainable economic growth and decent work
• Inclusive and sustainable industry
• Innovation, sustainable cities and communities

Environmental Achievements

• Renewed ISO 14001 certifications for several companies
• Implemented various equipment recycling and reuse procedures
• Reduced power consumption in machines at Ikusi
• Replaced 693 luminaires with LED lights at Uniblok factory
• Reduced natural gas consumption at Uniblok factory by 3%
• Replaced heating diesel with natural gas at Ormazabal's Loeches factory
• Replaced all luminaires with LED lights at Aislantes Sólidos
• Optimized photovoltaic installation at Aislantes Sólidos factory
• Ormazabal Zhuhai received the “Green Company Award”

Social Achievements

• Launched the Arco program for junior profiles
• Launched the Velatia Integration Programme
• Developed a Total Reward System
• Developed a Diversity and Social Inclusion Policy
• Continued collaboration with Lantegi Batuak Foundation
• Continued collaboration with UNICEF
• Continued collaboration with Novia Salcedo Foundation
• Continued collaboration with Save the Children Foundation

Governance Achievements

• Implemented measures to limit risks associated with concentration of power in the Board of Directors
• Established an Ethics Channel for confidential reporting
• Continued membership in the United Nations Global Compact
• Developed a Protocol on Prevention and Action against Workplace Harassment

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the business environment
• Economic recession in Mexico
• Mexican government's drastic investment cuts
• Tensions arising from the economic environment (projects halted, trade war with the United States, exchange rate fluctuations, etc.)
• Slow progress in the Colombian market
• Difficulty in attracting talent outside Spain
• Fall in sales due to reduction in turnover of Hewlett Packard

Mitigation Strategies

• Developed a risk map prioritizing risks based on probability of occurrence and impact
• Implemented ISO 45001 certifications to mitigate occupational safety risks
• Deployed an employer branding project to reduce difficulty in attracting talent
• Defined key indicators that are constantly monitored by the group’s management
• Implemented measures to improve the working climate
• Defined a commitment-based sustainability model
• Implemented measures to improve energy efficiency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier approval process requiring written undertaking to comply with Procurement Policy and Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2016), core option

Certifications: ISO 14001, ISO 45001, WORLDCOB-CRS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 5, SDG 7, SDG 8, SDG 9, SDG 11

Velatia's strategy focuses on addressing the complexity of the challenges defined by the Sustainable Development Goals with innovative responses and positive impacts in areas such as energy transition, digitalisation, cities and transport.

Sustainable Products & Innovation

• Smart transformers, smart grid solutions, eMobility solutions, eco-designed electric substations

Awards & Recognition

• Bizkaired Business Award, Basque Prize for Advanced Management, WORLDCOB-CSR certification, Green Company Award, Top Ten Integrator Gold, Cisco Partner Awards

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Human Capital Management
• Ethics and Corporate Governance
• Impact on Society
• Economic Performance and Customer Relations
• Partnerships and Responsible Relations with Partners and Suppliers

Environmental Achievements

• Reached 58% reduction in Scope 1 and 2 emissions intensity compared to 2019.
• 42% of energy consumed from renewable sources.
• Started measuring Scope 3 emissions.
• Implemented tree planting initiatives offsetting approximately 300t of CO2 over 40 years.

Social Achievements

• Launched Due Diligence project on human rights.
• Deployed Leadership Model in the organization.
• Deployed performance assessment process and Individual Development Plans (IDPs).
• Successfully developed ARCO and Integration programs for attracting and integrating young talent.
• Implemented Digital Disconnection Policy.

Governance Achievements

• Approved a Digital Disconnection Policy.
• Extended criteria for supplier approval to encourage incorporation of ESG criteria.
• One complaint received through the Ethics Channel, categorized as “Fraud / Conflict of interests / Corruption”, duly analyzed and resolved.

Climate Goals & Targets

Environmental Challenges

• Rising inflation, high interest rates, rising energy prices, rising commodity costs and supply shortages.
• Disruptions in global supply chains.
• Cybersecurity risks.
• Talent management risks.
• Human rights risks.
• Environmental risks (climate change).

Mitigation Strategies

• Developed alternative sourcing strategies.
• Deployed new tools and services to reduce cybersecurity risks (multi-factor authentication, SD-WAN).
• Deployed Leadership Model and IDPs to address talent management challenges.
• Launched Human Rights Due Diligence process.
• Integrated climate-related risk management into general risk analysis.
• Implemented measures to improve energy efficiency (photovoltaic panels, office refurbishment).

Supply Chain Management

Responsible Procurement

• Extended criteria for supplier approval to encourage incorporation of ESG criteria.
• Quality Manual and Code of Ethics provided to critical suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11

Velatia's efforts focus on access to energy, promotion of digitalization, contribution to socio-economic development, investment in innovation, equality, and diversity in people management.