2018 Corporate Responsibility Report
Español Català
Proposed actions 2018   Planned actions 2019
Energy vulnerability social action.
Consolidating the Energy Rehabilitation Solidarity Fund and obtaining sufficient resources to refurbish the maximum number homes of vulnerable groups.
Energy and smart mobility to improve air quality.
Strengthening and extending training in vehicular natural gas at vocational training centres.
Launching actions to support dissemination of the Vulnerability Plan and the promotion of energy efficiency.
Approval of the General Procedure of Sponsorship and Donations and its introduction in all countries and societies.
Reviewing and updating the General Regulation on Sponsorship and Donations.

Level of fulfilment:
Finalised, Major progress, Intermediate progress, Little progress, Not started

Economic contributions

The aim of the contributions to social programmes is to increase the company’s commitment to the local community. The programmes to which these resources are therefore allocated form part of the business development strategy. In 2018, they totalled Euros 11.01 million.

In order to measure the results, Naturgy has tools for assessing the reputation of the social programmes it carries out. As in previous years, in 2018 it continued to use the London Benchmarking Group methodology (LBG), which offers an overall view of social investment and enables a comparison of the results obtained with those of other companies.



Breakdown by type of action (%)

Motivation for initiatives (%)*

Area of action (%)*

Evolution of contributions
(euros million)

Creation of wealth and well-being where the company operates

Naturgy develops its commitment to society through four main lines of action, aligning with the company’s core activities.

Lines of action
Sponsorship, patronage and donations Social action. Latin America Integrated Operational Centre (COIL) Relationship with communities. Social impact Energy vulnerability
Cultural
Social
Energy and environment
Naturgy Foundation
Inclusive business
Responsible consumption
Talent promotion
Corporate Governance
Environmental man
Infrastructure
Products and services
Employment
Skills and trainingn
Suppliers
Taxes
 

Naturgy actively collaborates with prestigious national and international sectoral and business institutions, in which it participates with its experience, know-how and resources.

It is also part of the governing bodies of the business federations for the electricity and gas sectors, Unesa and Sedigas respectively, of the International Chamber of Commerce (ICC) and the Spanish Energy Club. Naturgy is a member of Forética and of the Spanish Association for the UN Global Compact. The company also takes part in the Foundation for Renewable Energy & Environment and in the Corporate Excellence Centre for Reputation Leadership.

 

Contribution to society (euros million)

Corporate income tax.
Intangibles investments.
Contribution to GDP by country (%)

2016.
2017.
2018.
Note: The contribution to GDP of the companies of Colombia, Italy, Kenya, Moldova and South Africa that appear as 0, are as part of the divestments produced in those countries.

 

 

Resilience

Companies must be prepared to cope with crisis scenarios that may endanger their goals or society itself (supply of essential services, fires, discharges, etc.). In this context, cooperation with public and private entities is essential.

Naturgy has a resilience model with which it anticipates and deals with situations of crisis by reducing their impact on the business, customers and society. This model includes the implementation of Crisis Management Plans (CMPs) and education and training programmes for Crisis Management Committees and teams involved, and a relationship with affected stakeholders.

Naturgy currently has CMPs in Morocco, Egypt, Kenya, Moldova Chile, Brazil, Mexico and Spain. Five crisis simulations were carried out in 2018, the aim of which was to ensure the effective action of teams and to verify the operability and coherence of the protocols set out in the CMPs.

Action against energy fraud

Energy fraud deserves a special mention. Aside from the economic impact it can cause the company, it also implies:

  • Reduced tax collection.
  • Higher energy costs for end users.
  • Unfair competition between companies.
  • Risk for public safety from illegal connections.

In 2018, there were 1,699 cases of investigation and anti-fraud action in Argentina, Brazil, Colombia, Panama, Mexico, Spain and Moldova. Of these actions, 1,428 cases corresponded to planned investigations and anti-fraud projects in the field of electricity and gas distribution, and a further 271 cases were instigated at the request of the different areas and businesses of the company.

These actions led to the recovery of significant volumes of energy through billing for the energy defrauded, reducing fraud in the sphere of electricity and gas distribution, more specifically 2.89 GWh of electricity, which led to an amount recovered of Euros 0.388 million and 5.31 million m3, equivalent to Euros 4.522 million.

This programme demonstrates the company’s proactiveness and firm commitment against criminal conduct and corruption.

Energy vulnerability

Naturgy performs its activity in areas where the energy supply does not reach the entire population. The company considers it a priority to reach the people that live in these areas. This is why it actively works in developing its distribution networks to offer these populations a service under safe conditions.

Inclusive integral gas supply model (Argentina)

Argentina continues to develop an inclusive model to allow impoverished neighbourhoods access to the gas network. Thus, in 2018, Naturgy, reached an agreement with the National State within the framework of the Comprehensive Tariff Review agreed, to extend the gas network in around a dozen neighbourhoods in the districts of Moreno, Tigre, José C. Paz and Zárate, adding a total of 231,319 metres of network to benefit 11,388 homes.

Aware of the limitations in accessing credit to adapt the internal gas facilities of impoverished homes, at Naturgy we have been working on introducing proposals that allow these homes to gain access to the service. Thus, it has set up credit facilities in collaboration with the municipality of Pilar, with the Ministry of Housing through the “Procrear Better Home” programme, thanks to which 7,146 households remain connected to the network and more than 6,000 works are in progress. It also partners Banco Ciudad, allowing 115 households to be connected and with more than 626 in process.

Providing vulnerable customers with access to energy

Naturgy is sensitive to the different issues and situations that can cause difficulty in paying for the supply. For this reason, the company uses a range of mechanisms to ensure the supply is not cut off, thus protecting vulnerable customers. These mechanisms include payment by instalments, applied in specific situations.

The company has always pursued a proactive policy against energy poverty, which covers more than 94% of its customers in Spain, based on agreements and on cooperation and information from the municipal social services.

To date, the administrations have forwarded the company's 26,562 cases of vulnerable customers, from 885 towns and cities throughout the country, and we have managed to prevent cutting-off the supply because of non-payment.

In 2018, in Spain, Naturgy carried on signing agreements to protect vulnerable customers with different administrations to prevent cutting off customers that social services had reported as being vulnerable.

Energy Vulnerability Plan in Spain

Together with the Foundation, during 2018 Naturgy has continued implementing the Energy Vulnerability Plan throughout Spain to protect vulnerable customers.

The plan aims to intensify the actions that were already being carried out, to systematise the management of vulnerable customers and strengthen collaboration with government and third sector organizations.

To do this, Naturgy has launched a specific package of 20 measures with a financial endowment of Euros 4.5 million and a team of 60 employees. The initiatives are both of an operational and social nature, allowing us to conduct comprehensive monitoring and development towards energy vulnerability.

With this plan, the company seeks to give a proactive response, focused on the generation of adapted solutions that optimise savings in the homes of families at risk of energy vulnerability. 2018 indicators include:

  • Naturgy is protecting 26,562 customers from 885 localities.
  • 142,000 calls to customer service from vulnerable customers were attended to.
  • 75,160 emails have been managed with social services.
  • 406 rehabilitation projects of vulnerable homes for improving the energy efficiency through the Foundation’s Solidarity Fund have been processed.

A massive telephone counselling action has been carried out with vulnerable customers to explain the best method of contracting.

Relationship with communities

Naturgy, under its Human Rights Policy, makes a firm commitment to respect local communities. To achieve this commitment, the social impact that company activities may have on communities and contributing to improving the living conditions of these communities are key aspects for evaluation.

Naturgy has a method based on the Measuring Impact methodology of the World Business Council for Sustainable Development (WBCSD) and the aim is to define initiatives and programmes for the effective management of social impacts associated with the company’s business.

The company currently prioritises the performance of social impact assessments in those locations where the company is looking to carry out new investment projects. These assessments measure a range of impacts, including the impact on human rights.

As a result of these social impact assessments, Naturgy implements programmes adapted to the needs of the communities, with the aim of improving the quality of life of the people around them. The most outstanding programmes take place at:

  • Bujagali hydroelectric plant (Uganda).
  • Bií-Hioxo wind farm (Mexico).
  • Naco Nogales combined-cycle power station (Mexico).
  • Durango combined-cycle power station (Mexico).
  • Hermosillo combined-cycle power station (Mexico).
  • Nairobi thermal power station (Kenya).
  • Torito hydroelectric power station (Costa Rica).
  • La Joya hydroelectric power station (Costa Rica)
  • CGE (Chile)
  • Sobral I photovoltaic plant (Brazil).

Sobral I photovoltaic plant (Brazil)

Since the start-up in 2017 of the Sobral I photovoltaic plant, located in the municipality of São João do Piauí, the implementation of the Quilombola Basic Environmental Project (PBAQ) is being carried out as a measure of mitigation and compensation for the impacts that the plant may cause quilombolas communities in the territories of Riacho dos Negros and Saco/Curtume.

The PBAQ is a programme of actions resulting from dialogue and the participation of the communities according to the criteria of the Palmares Cultural Foundation, which is responsible for monitoring the implementation of the same. The actions carried out in 2018, as part of the PBAQ, have been:

  • Mobilization of the social technical team necessary to carry out continuous communication with the community.
  • Meetings and actions for outreach and dialogue with the Neighbourhood Committee of the Quilombola Community.
  • Recovery of access roads to the Quilombola communities of Elisiê and Estreito.
  • Recovery of the freshwater canal located in Saco/Curtume.
  • Installation of a solar pump kit in the well of the Quilombola community of Riacho do Anselmo.
  • Construction of a learning centre in the community of Malhada.
  • Signing of a collaboration agreement with the Sul do Piauí Training Academy, thanks to which 40 training grants in occupational safety and nursing will be awarded during the 2019/20 academic year.

Bií-Hioxo wind farm (Mexico)

It is a wind energy generation project that produces 234 MW. It comprises 117 wind turbines and is located in Juchitán de Zaragoza, Oaxaca, (Mexico).

Naturgy, according to its firm commitment to respect human rights and specifically the traditional ways of life, has consistently worked with the community. Thus, it has launched programmes that respond to the needs of the community and contribute to improving their living conditions. The lines of ac tion are: health, education, infrastructure, productive projects and the environment.

It is important to mention that following the 2017 earthquakes that occurred in the Isthmus region, the population and the area were left highly affected, with ensuing new and different needs. Faced with this, the following projects were launched: debris removal, reconstruction of the social fabric through workshops and consultations, extraordinary earthquake support to home-owners and collaborators, participation within the Oaxaca-AMDEE Fund to support fire-fighters, school infrastructure and training of medical and psychological personnel.

Programmes derived from the Bií-Hioxo wind farm project (Mexico) in 2018
Support to local development Acquisition of material to carry out activities in fishing communities, and improvement of the road infrastructure from Vicente Beach.
Relationship and social activities with those leasing their lands Relationship and social activities with those leasing their lands, to encourage clear and fluid dialogue.
Social and educational activities for the community Environmental education workshops, leisure and sports activities, psycho-emotional and health workshops with more than 600 beneficiaries.

Social action in Latin America

Naturgy believes that its community investment programmes have to focus on the geographical areas where it has a presence and must develop in tandem with the corporate activity. To meet this target, the Latin America Integrated Operational Centre (COIL) for Management of Community Investment Projects was created in 2011. Under the motto “Energy to Grow”, it implements three kinds of projects.

Inclusive business

Initiatives that promote the inclusion of the most disadvantaged social sectors through the implementation of inclusive programmes such as the Energy of Flavour programme and the Training Classrooms programme.

Responsible consumption

Projects targeted at providing knowledge about energy in general, safety and efficient use, of both gas and electricity. In addition, they seek to raise awareness among the different target publics about the importance of preserving the environment. As part of this pillar, the following traditional programmes were carried out: Responsible Gas Consumption programme and Sowing the Future programme.

Talent promotion

Projects that foster the studies and access to employment for the children and relatives of collaborators in Naturgy Argentina. Of particular note: Planning your Future programme, Natural Vocation programme and Summer Internship programme.

Patronage and sponsorship

The resources assigned to cultural, social and environmental programmes pays special attention to those community projects that generate greater value for society, while also strengthening the Company’s commitment to positive integration in each community and country where the group operates.

Through the General Regulation on Sponsorship and Donations of Naturgy, the general management principles are established for sponsorships and donations by the company and to define the processes that regulate and control its development. The main lines of action are:

  • Educational initiatives: a wide range of collaboration, participation and sponsorship initiatives with different educational entities in Spain and Latin America.
  • Social action focused on underprivileged groups: promotion of education, cultural wealth, health, research and the inclusion of the more underprivileged collectives through social investment.
  • Promotion of music, theatre and films: Contributing to the development of culture with initiatives such as a series of musical events and artistic seasons.

Corporate volunteers and employee participation

Naturgy has defined the corporate volunteering programme objectives in three areas– corporate, employees and the environment– and an integrated structure of committees that includes both the areas of people as well as communication and the environment of all countries that form part of the programme (Argentina, Brazil, Colombia, Spain, Mexico, Moldova, Panama and the Dominican Republic).

Throughout 2018, employees have spent more than 7,757 hours volunteering, featuring participation by 1,267 employees worldwide. Globally, a total of 32 environmental volunteer actions, 49 social volunteer actions were carried out along with three energy volunteer actions.

Solidarity Day
 

Created in 1997 and managed by the employees. It involves participants voluntarily donating a one-day fraction of their annual salary to projects targeted at promoting education and teaching children and young persons in those countries in which Naturgy operates.

For the Solidarity Day event, the company donates an amount equal to the amount donated by employees and assumes all management costs, so that 100% of the amount raised can be used for the annual selected project. Close to 1,500 employees around the world took part in this initiative. In 2018 these employees donated Euros 240,000 from their salaries and the company gave an additional contribution for the same value, as well as assuming the management costs of the association. From the outset, Solidarity Day has raised Euros 2.5 million in donations from employees, and the company has provided an equal sum.
In 2018, Solidarity Day financed the education of over 330 school, technical and university students as part of the ordinary projects being implemented in Argentina, Brazil, Colombia, Morocco, Mexico, Moldova, Nicaragua, Panama, Chile and Portugal.

The proceeds raised by Solidarity Day in 2018 will be used for new educational projects in Brazil, set to begin in 2019.

Naturgy Foundation

As in previous years, the foundation placed in the top spots of the transparency ranking carried out by the Compromiso y Transparencia Foundation.

The core axes of the Foundation are based on training, dissemination and awareness in the field of energy and the environment.

During 2018, fifteen seminars have been held in Spain, among other presentations on these subjects, with participation by more than 1,667 people. One new item this year has been the commencement of two new action lines as part of the “energy and technology” and “smart energy and mobility” sphere.

The forecast for 2019 is to continue developing these action lines through seminars, forums and training, with the signing of collaboration agreements with companies and Autonomous Regions.

The Energy Vulnerability Plan, a programme that started in 2017, has become a priority issue for the Foundation. In this area, agreements have been renewed with entities from the third sector, such as Cáritas and the Red Cross, and new ones have been added with different entities.

During 2018, the energy volunteer programme “Energy advice in homes” was consolidated. A total of 481 volunteers took part and more than 1,200 families that attended the energy consultancy workshops received an energy efficiency kit, 437 families were catered to in their own homes and, of these, 108 express rehabilitations were carried out.

The training activity of the Energy School has also grown, training social workers from public entities and NGOs in energy issues, to improve the life quality of vulnerable people. Throughout the year, the school gave a total of 832 sessions with 9,361 attendees, of which 60% are families.

In relation to the agreement signed with Cáritas, more than 450 actions have been developed both at centres and homes belonging to the entity and in the homes of families served, from which more than 8,000 people have benefited.

We can highlight the following actions within the Vulnerability Plan:

  • Creation of the Energy Rehabilitation Solidarity Fund, to finance improvements at vulnerable homes through donations from individuals and a contribution from the Foundation.
  • Job Circle project: training course for long-term unemployed people, which aims to refurbish fifteen homes and has the commitment from businesses to recruit 25% of participants.
  • Social entrepreneurs: the purpose of which is to enable Naturgy employees to encourage initiatives promoted by not-for-profit organisations and which are related to energy and the environment. In 2018, the beneficiary project of the first edition of the contest in Spain was “Custodiando el bosque atlántico en el río Mandeo (Galicia)” (Looking after the Atlantic Forest on the River Mandeo).

The Foundation also has an ambitious education and outreach programme in the field of energy, which has the mission of transferring to society the values of efficiency, responsible energy consumption and knowledge of industrial heritage, as well as promoting technological and scientific vocations for a better future for all.

In 2018, with the aim of giving new impetus to its educational activity and facilitating access to its teaching programme throughout the territory, the Foundation has multiplied its participation in numerous innovative and flexible events adapted to different types of public. In 2018, educational and informative activities, in addition to the Travelling Energytruck exhibition, generated 217,940 users.

At international level, specifically in Algeria, Argentina, Brazil, Chile, Morocco, Mexico, Panama and South Africa, seminars and programmes were developed to promote the rational use of energy resources and encourage sustainable development.

 

Activities of the Naturgy Foundation. Spain
2018 2017 2016
Active agreements with autonomous regions 24 24 24
Seminars/courses held 19 19 20
Seminars carried out: First Export programme 0 16 28
Budget allocation in acts (% out of total) 50 20 45
Publications 1 1 0
Articles about energy and the environment 2 3 0


International activities of the Naturgy Foundation
2018 2017 2016
Activities 12 15 17
International activities budget (% out of total) 12 14 24
Countries in which it operates 7 9 11

 

Refer to the www.fundacionnaturgy.org website for in-depth information about the activities of the Naturgy Foundation..

 

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