Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Inclusion and Diversity
• Workforce Well-being
• Community Investment
• Ethical Conduct

Environmental Achievements

• Received recommendation for ISO 50001:2011 certification at Maipú plant for energy performance improvement.
• Four plants in Chile certified under ISO 14001 environmental management standard.

Social Achievements

• Launched Inclusion and Diversity Policy (PID).
• Women AVANZA Program supported 19 entrepreneurs.
• Internship program for students with disabilities.
• Partnership with Fundación Portas for youth mentoring.
• Sponsored 6 social organization projects through Comunidad Mujer.
• Achieved 17th place in Great Place to Work ranking in Chile.
• Ranked 6th in Best Company for Working Fathers and Mothers.
• Successfully concluded two collective bargaining processes in Chile.

Governance Achievements

• Formalized registration in Chile’s Securities Registry.
• Successfully completed first placement of bonds in Chile.
• Implemented a system of annual bonuses aligned with market compensation policies for executives.

Climate Goals & Targets

Environmental Challenges

• Alleged price collusion investigation in Peru (Lima Gas subsidiary).
• Postponed IPO due to unfavorable market conditions.
• Flood in Atacama region damaged Copiapó plant.

Mitigation Strategies

• Initiated internal investigation with external support in Peru.
• Maintained investment plan despite IPO postponement.
• Activated Crisis Committee and provided aid to affected workers and communities in Atacama.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• First place 2015 National Customer Satisfaction Award (cylinder gas category)
• 6th place in Best Company for Working Fathers and Mothers
• CIO Club distinction for technological project

Environmental Metrics

ESG Focus Areas

• Environment

Environmental Achievements

• Four LPG plants (Antofagasta, Concon, Coquimbo, and Rancagua) certified to ISO 14001:2004 for Environmental Management System since 2008/2009.
• Measuring carbon footprint since 2011; mitigation measures planned for 2015.

Climate Goals & Targets

Environmental Challenges

• Supply of raw material (LPG) in Chile, Colombia, and Peru.
• Variations in international LPG prices affecting realizable value of inventories.
• Administrative fine imposed by the Superintendency of Electricity and Fuels for breach of obligation to continually monitor fuel quality (under appeal).

Mitigation Strategies

• Network of suppliers in Chile (ENAP Refinerías S.A., Gasmar S.A., imports from Argentina and Peru, and sea imports since March 2015).
• Contracts with Oxiquim S.A. for LPG receiving, storage, and dispatching facilities in Quintero Bay (operational since March 2015).
• Purchase quotas with Ecopetrol S.A. in Colombia.
• Contracts with PetroPeru and Pluspetrol in Peru.
• Hedging against variation in sale price of inventory stored at Quintero maritime terminal through LPG price swaps and currency forwards.
• Appeal filed against administrative fine.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 14001:2004

Environmental Metrics

ESG Focus Areas

• Cleaner energy access
• Safety
• Customer experience
• Economic development
• Ethics and compliance
• Employee quality
• Environmental impact mitigation
• Stakeholder relations

Environmental Achievements

• Reduced carbon footprint through LPG and NG sales, replacing higher-emission fuels like firewood and paraffin.
• 1.1 tons of electronic waste recycled.
• 80% of grills at Fiesta de la Chilenidad used LPG instead of coal, reducing waste by over one ton.

Social Achievements

• Successfully completed collective bargaining agreements with unions in northern and central Chile.
• Launched a complaints line in all three operating countries.
• Strengthened the Ambassadors Network in Chile (6,800 ambassadors).
• Assisted Cabildo Indígena San Francisco in accessing LPG subsidies in Colombia.
• Recognized 13 outstanding contractors in Chile.

Governance Achievements

• Maintained a strong corporate governance structure.
• Implemented a compliance plan focusing on employee training and regulatory compliance.

Climate Goals & Targets

Environmental Challenges

• Highly competitive LPG market.
• Supply chain risks (LPG supply, natural gas supply).
• Regulatory risks (changes in gas services laws, antitrust regulations).
• Accident risks (handling, storage, and transportation of flammable materials).
• Reputation risks (damage from products, non-compliance).
• Climate change related risks (reduced demand for fossil fuels).

Mitigation Strategies

• Diversified LPG supply chain (sea imports, local suppliers).
• Long-term supply agreements for natural gas.
• Strict safety procedures and insurance coverage.
• Compliance with regulations and internal compliance plan.
• Monitoring of climate change legislation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Multiple suppliers for LPG in Chile (Enap Refinerías S.A., Gasmar S.A., Argentina, Peru, sea imports).
• Purchase quotas with Ecopetrol S.A. in Colombia.
• Agreements with Petroperú and Pluspetrol in Peru.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Reduced demand for fossil fuels due to climate change regulations.

Opportunities

• Increased demand for LPG as a cleaner alternative to firewood.

Reporting Standards

Frameworks Used: Null

Certifications: OHSAS 18001:2007 (13 plants in Chile, 4 in Peru, 15 in Colombia), ISO 9001 (15 plants in Colombia)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Great Place to Work (Chile)
• Hall of Fame of Great Brands in Chile
• Employers for Youth (EFY) ranking (Chile)
• Best Customer Experience (BCX) research (Chile)
• Praxis Xperience Index (PXI) ranking (Chile)
• MERCO Talento Chile 2017 (Chile)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Lower consumption of industrial customers in Chile leading to decreased LPG sales.
• Asset impairment provision related to the LNG project in Peru due to exclusivity and anticipated payments.
• Supply risk of LPG in Peru due to high concentration of supply capacity in Lima.
• Competition with other energy sources (natural gas, firewood, diesel, paraffin, electricity) in LPG markets.
• Regulatory risk from amendments to the Gas Services Law in Chile.
• Risk of litigation, penalties, and fines due to business operations.
• Potential negative impact from regulatory, political, economic, and social conditions in operating countries.
• Risks associated with acquisitions, including integration difficulties and regulatory approvals.
• Risks of production, storage, and transportation of gas, including accidents and environmental damage.
• Risk of insufficient insurance coverage for losses.
• Risk of regulatory changes for climate change mitigation, potentially reducing demand for fossil fuels.

Mitigation Strategies

• Credit policies with limits and monitoring of client financial background.
• Cash deposited in high credit rating banks; diversified investments in financial institutions.
• Solvency analysis of counterparties.
• Proper management of assets and liabilities; relationships with major financial institutions; periodic cash flow projections.
• Hedging strategies for exchange rate and indexation unit risks; forwards for purchase operations.
• Monitoring of the outlook for interest rates; 98.30% of financial debt at fixed rates.
• Multiple suppliers for LPG in Chile (Enap Refinerías S.A., Gasmar S.A., imports from Argentina and Peru); agreements with Oxiquim S.A. for LPG reception, storage, and dispatch.
• Purchase quotas with Ecopetrol S.A. for LPG in Colombia; agreements with other local players and sea imports.
• Agreements with Petroperú and Pluspetrol for LPG in Peru; imports from Bolivia.
• Transferring LPG cost variations to selling prices; maintaining LPG inventories; hedging for inventory realization risk at the maritime terminal.
• Long-term agreements with suppliers for natural gas in Chile and Peru; supply agreements with distributors in Colombia.
• LNG supply agreements with several suppliers, including "take or pay" clauses.
• Inclusion of profitability restrictions in the evaluation of natural gas projects.
• Compliance with relevant regulations; procedures in place to avoid penalties and fines.
• Permanent monitoring of regulatory, political, economic, and social conditions.
• Detailed analysis of acquisitions by multi-disciplinary teams; external consultants if necessary.
• Safety measures including training, emergency response procedures, awareness actions, and certifications (OHSAS 18001:2007, ISO 9001).
• Insurance coverage consistent with industry standards.
• Permanent monitoring of climate change legislation.

Supply Chain Management

Responsible Procurement

• Agreements with multiple suppliers for LPG and natural gas.

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes to reduce greenhouse gas emissions; increased competition from alternative energy sources.