Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer experience
• Business diversification
• Energy resource management
• Talent development and OSH
• Conservation of ecosystems and contribution to society
• GHG emissions
• Energy consumption
• Waste management
• Environmental compliance
• Supplier relations
• Social investment

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Percentage of purchases from local suppliers
• ESG criteria for supplier selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: Deloitte Asesores y Consultores Ltda.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Resource Management
• Conservation of Ecosystems
• Contribution to Society
• Employee Well-being
• Corporate Governance
• Ethics and Transparency

Environmental Achievements

• 89.17% reduction in the intensity of GHG emissions compared to 2015.
• Eliminated energy generation with solid fossil fuel (coal) at the Colón Thermal Complex.
• Avoided the emission of 319,077 Tons of CO2eq through renewable energy generation projects.
• Optimized 237.3 million m3 of water through increased efficiency in turbines and new technologies.
• No mercury emissions due to the cessation of fossil fuel generation at the Bahía Las Minas Plant.

Social Achievements

• 97% employee commitment assessment.
• 50,202 hours of Occupational Health and Safety training for employees and contractors.
• 100% of contractors trained in Occupational Health and Safety topics.
• 389,914 people benefitted through social investment in Colombia and Central America.
• 100% of employees trained in the Code of Conduct.

Governance Achievements

• 100% of Board of Directors members informed and trained on information use, transparency, preventing corruption and money laundering.
• Zero cases of corruption and bribery in the last four years.
• No cybersecurity incidents in 2021.

Climate Goals & Targets

Environmental Challenges

• Regulatory changes that may include taxes on the use of natural gas.
• Extreme seasons of drought impacting stock prices and company income.
• Regulatory changes not facilitating the development of low-emission technologies.
• Extreme climatic variability affecting resource use.
• Not obtaining environmental licenses for wind and solar projects.
• Limited access to economic or financial resources for project development.
• Cost variability of new technologies to implement conventional non-renewable energies.
• Network unavailability, client non-compliance, public order problems, epidemiological risks, and difficulty paying the service due to socioeconomic conditions.

Mitigation Strategies

• Climate change strategy including mitigation, compensation, and adaptation actions aligned with Grupo Argos.
• Exploration of new businesses like demand management, AMI, electric mobility, and hydrogen research.
• Detailed presentation of climate change management strategy to the Board of Directors.
• Qualitative and quantitative valuation of climate risk, using catastrophic models and Monte Carlo simulation.
• Development of virtual channels for client service, on-site activity management, billing, and collection.
• Follow-up of process structuring to collect payment for services rendered.
• Development of the Orange School for clients.

Supply Chain Management

Supplier Audits: 23 relationship visits to suppliers in 2021

Responsible Procurement

• Strengthening the relationship model with suppliers
• Continuity in the management of supply chain risks
• Boosting simplification and digitalization initiatives
• Development and promotion of action lines that promote the creation of social value for suppliers
• Development of new skills and competencies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme seasons of drought
• Extreme climatic variability

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Tax benefits
• Carbon markets
• Sustainable credits
• Tradable quota market
• Tax on carbon
• Generation from hydrogen
• Certificates of origin for renewable energy

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: Null

Third-party Assurance: Deloitte & Touche Ltda.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB

Third-party Assurance: BDO Audit S.A.S BIC

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: BDO Audit S.A.S BIC