2018 Corporate Responsibility Report
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Proposed actions 2018   Planned actions 2019
New organisational model of the group.
Application of the new People Model.
Scale up the use of People Analytics in the preparation of diagnostics and in taking decisions that concern people.
DigitalTEAM. New ways of working project.
Implement new methods of working and new ways of collaboration that run alongside the business evolution.
Launch of the Transformational Leadership Academy.
Consolidate the digitalisation of talent management towards a justin- time model.
Naturgy in-house Communication Plan focused on: corporate priorities, the executive role in communication, and fostering participation.
Level of fulfilment:
Finalised Major progress Intermediate progress Little progress Not started

Commitment to people

The Naturgy People Model

During 2018 the people management strategy at Naturgy has revolved around the transformation and creation of value, as set out in the company’s roadmap. The empowerment of people is one of the levers that drives the transformation the company is introducing. In this regard, management of people has focused on defining its management model, bridging the new strategic targets with people and simplifying processes to accompany the creation of value.

Naturgy’s people model is conceived as a dynamic ecosystem that allows people to be part of the company’s evolution. This model integrates three large areas –commitment and loyalty, training and reward–, where there is convergence of a series of axes and their associated processes that ensure consistency and solidity.

Summary of awards obtained in 2018

Seals and certifications

Rankings

Awards

Workforce

Naturgy offers its employees stable, quality employment together with a solid, structured and attractive professional career, where 98% of the positions have open-ended contracts. The company has a global model of homogeneous selection for all the businesses and countries where it operates, enabling it to ensure best practices in the identification, recruitment and retention of talent.

The rigour and professionalism of the people that form part of Naturgy, the interest in ongoing learning and selfdevelopment, the innovative spirit, as well as the sustainable commitment and involvement in the corporate objectives, are features of the profile of professionals in all geographies and businesses. In this regard, we can highlight the fact that 84% of employees declare they have a high level of commitment to the company.

Team key items

Naturgy performs its activity in morethan 27 countries. At the close of 2018,the company was operating throughthe direct involvement of 12,7001persons, of which 52.5% performedtheir activity in Europe, 46.1% inAmerica and the remaining 1.4% inother continents.

31% of the workforce was made upby women and 69% by men, and hadan average age of 43.9 years, withan average seniority of 14.2 years,considering that the company carriedout a centralized management of itspersonnel policies (12,508 employees).

1. Workforce at the year-end with centralisedand non-centralised management due to thepercentage of participation.

Staff index (Number of employees) 

NB 1: the companies consolidated through the equity method and which do not provide a headcountbreakdown would total 4,085 employees, distributed as follows: Colombia 1,451, Argentina 862, Spain 757,Egypt 148, Kenya 79, Moldova 707 and Puerto Rico 81.

 

Breakdown of staff by professional category and gender (%) 

Talent management

In 2018, Naturgy’s new people model defines the management of talent as one of its three strategic axes, where the leadership model, the assessment and segmentation of professionals to adapt their development to the different profiles, as well as the processes of identification and development of successors, are key parts of the attraction, loyalty and commitment of people.

New organisational model of the group

Talent management has been one of the elements that has defined the implementation of the new organisational model, as an element of corporate transformation. The changes have been sweeping and overarching, with the aim of reducing the scope of control and complexity, avoiding the overlapping of functions, giving the business units full responsibility, optimising the support they receive from corporate functions, as well as bringing the organisation into line with the new Strategic Plan.

Staff promoted (%)

Talent attraction

Naturgy has a pool of young professionals with sound technical and management training.

Talent attraction initiatives

Professional practices programme

Naturgy has partnerships with leading universities and higher educational institutions in the different countries where it operates, with special relevance in Spain. These partnerships enable the company to select young people for work experience. Every year, the Group as a whole provides training to more than 125 university students and more than 100 Vocational Training (VT) students or equivalent.

Dual VT

Naturgy’s commitment to Dual VT has continued in 2018 with the addition of a fifth vocational training centre. This year there were 133 students enrolled between the first and second course of the four centres sponsored by the company, who together with the 27 students that had already completed the first graduation in previous years, make up a total of 160 people trained in our vocational training cycles. During the 2018-2019 course there will be more than 140 students enrolled in the Naturgy training cycles.

The commitment to the inclusion of young people in the business has allowed the company to renew in 2018 the seal of entrepreneurship and youth employment strategy.

On boarding

Based on results of the Employee Experience Project developed during 2017, the company has worked on the redefinition and optimisation of the on-boarding process, the purpose of which is to accompany the new professionals that join the organisation. During 2018, the new model has been put into practice resulting in an improvement of the employee experience.

Type of contract (%)

 Permanent contract men.
  Permanent contract women.
  Temporary contract men.
  Temporary contract women.

New recruitments by gender and age group

 Men.
 Women.
  Total.

Talent development

At Naturgy, talent management is a homogeneous function in all businesses, and is governed by shared objectives defined in the leadership model. This framework, targeted at achieving the Group’s results, defines the competences and expected behaviour of Naturgy professionals, based on the principles of ethics, collaboration, equal opportunities and respect for difference.

The tools for talent management, used for the purpose of finding out about professionals, promoting their development and optimising mobility and promotion, are built around four pillars: evaluation, development, succession and job posting.

The in-depth organisational transformation in 2018 has meant that 87% of the management team has changed functions. Of these changes, 44% have taken place between different departments, that is, transversal mobility. Also, during 2018, a total of 853 vacancies have been filled through the mobility process.

Talent management also ensures the incorporation of external talent, guaranteeing that we attract high potential professionals through programmes such as the Management Staff, which in 2018 had more than 75 professionals from 14 nationalities, of which 60% have been promoted to management positions and 12% occupy positions of structure.

New Employee Value Proposition (EVP) – Protagonists of change to build the future

We are designing a challenging project: we are protagonists of the transformation, we face challenges every day, in every business, in every country, in every corner. We are designing a future and innovative project in which to grow as people and professionals.

The energy comes from the team: many people and just one team. A professional and diverse team that shares inspiration and learning. A team to lean on to grow, to imagine the future and to achieve it.

Contributing value thanks to employees: believing in their energy, responsibility and autonomy as the key to our business. Believing in their daily effort to make an impact on our customers and in the search for a more sustainable and prosperous society.

Leading our own destiny as the key to our destiny as a company, as a team and as people. Spearheading the change is in the hands of all those who make it possible for Naturgy to be real.

Within the framework of the transformation started by Naturgy in 2018, the adaptation of the Employee Value Proposition (EVP) has been a priority task to refocus the employer branding policy and synchronise it with the people model. The new EVP incorporates the attributes and reasons that define Naturgy as a place to work.

This adaptation has been made by addressing the four basic axes of any value proposition: remuneration, attraction, commitment and reputation, and has involved Naturgy employees in all geographies. The process starts with the analysis of the company’s Strategic Plan, the main trends and practices in employer branding within the sector and the IBEX 35, and the economic and social context linked to sustainability.

Rotation index and voluntary rotation index (%) (*)

 Rotation
 Voluntary rotation.
(*)Rotation: layoffs/average staff. Voluntary rotation: voluntary layoffs/average staff.
NB: the breakdown of this indicator according to geographical location is available in the appendix to this report.

 

Rotation indices according to gender and age group (%) (*)

Rotation index Voluntary rotation index
18-35 Men 16,96 6,26
Women 15,67 6,27
36-50 Men 9,46 1,82
Women 8,46 2,32
>50 Men 35,02 0,79
Women 28,25 0,37
(*) Rotation: layoffs/average staff. Voluntary rotation: voluntary layoffs/average staff.
NB: the breakdown of this indicator according to geographical location is available in the appendix to this report.

Diversity and equal opportunities

For Naturgy it is essential to promote diversity and equal opportunities in an environment of respect, understanding and ongoing dialogue. There is a special focus on gender diversity targets, on the inclusion of individuals with various disabilities and extending this commitment to suppliers and collaborating companies.

Integrated Diversity Plan

In 2018, the company’s commitment to diversity remained strong, consolidating the Integrated Diversity Plan which brings together specific initiatives for people management, classified into three areas: gender, disabilities and age.

Integrated Diversity Plan initiatives and tools
Gender Continuity of the specific development plan for female talent with the following areas of action: incorporation of talent, promotion of leadership (Take the Lead, Hazte Visible (Become Visible), Mentoring) and online training in diversity (Women Empowerment, inclusive leadership and diversity management).
Disability As regards integration and accessibility of people with different capabilities, the Management of Naturgy acts as an impetus for a range of actions targeted at standardising management of functional diversity: Familia Plan, Capacitas Plan, Aflora Plan and Bequal Plus Certificate.
Age Naturgy works generational diversity through directed and planned actions: Junior Talent, acceleration of talent, monitoring of mobility and promotion.
Take the Lead and Hazte visible (Become Visible)

The programmes have been designed to promote a global and diverse vision with senior and middle management of the company, to empower them in their leadership role with their personal and professional brand.

The objectives pursued by these programmes are:

  • Connect participants with the need to lead their career and encourage them to be the protagonists of their development.
  • Develop a strong personal brand, in line with the professional vision and purpose.
  • Build a shared vision and discover the attributes, values and skills that define and make each female director unique.
  • Increase the visibility of the group of female middle managers and enhance their networking in the organisation.

The impact and degree of satisfaction of the programmes are:

Women in management posts (%)

2016: 25,7

2017: 26,2

2018: 28,3

Average salary of men and women by professional category. Spain

 Men.
 Women.
NB 1: the breakdown of this indicator according to geographical location is available in the appendix to this report.
NB 2: the difference in salary shown by the results is in line with the context of the sector and generated mainly by the company's past gender make-up, which means greater average seniority of men in comparison with women.
NB 3: data is calculated on fixed pay.

 

Employees with disabilities (%)

Spain: 2,40

Flexibility

Naturgy is committed to promoting an appropriate work-life balance through a significant number of flexible employment measures, services and benefits adapted to employees' needs.

The EFR Global certificate, reviewed in 2018, recognises Naturgy as a benchmark for the new socio-labour and business culture, thanks to the corporate and local measures it offers in matters of work-private life reconciliation and the services it provides to its employees, such as the Time Bank.

 

Comparison of employees with maternity/paternity leave with those who made use of this right


Flexibility and support for the personal environment

Employee satisfaction

Knowing employee satisfaction and the value they place on the actions and the products that the company makes available to them is a key element of Naturgy's commitment to people.

Tools such as the climate survey, conducted every two years, give rise to actions and improvement plans that are reflected in the results of subsequent years. Currently, the commitment percentage is around 84% –this result has been obtained separately for men and women–, and the figure is above the benchmark average.

Employee Care Service (SAE)

The service, introduced in Spain and Latin America, has celebrated its sixth anniversary in 2018, consolidating itself as a single and centralised point of contact between the employee and the organisation.

The SAE allows the consolidation of global and unique models in terms of care for professionals during their life cycle in the company. The service has a multichannel approach, thanks to the online platform, and personalised attention that is accessible from any device.

2018 has been a year of growth in the SAE, with the incorporation of new services and the technological evolution of the tool to improve functionality and the employee’s experience.

Currently, the NPS of the service is 67.21%, 121,164 requests from employees have been answered and 90.22% of the requests have been resolved within the deadline.

Culture and Employee Experience

Within the framework of Naturgy’s transformation, and accompanying the strategic vision of the company, the empowerment of people is one of the three key levers, together with customers and shareholders, in the creation of value.

The Naturgy culture frames the processes of the people model from consistency, global approach and leadership, giving meaning and projection to the transformation towards value creation.

In recent years, the implementation of new ways of working through flexible methodologies (scrum, design thinking or lean start-up), new technologies and open innovation environments have allowed us to make important strides in adapting the Group’s culture.

Likewise, during 2018, the analysis of the Naturgy culture was updated. Analysis based on the Denison model diagnosis and in line with the messages of Senior Management, focusing on the concept of transformation as a key element and giving meaning to the 15 words that have been identified as the structure on which to build the Naturgy culture model.

The analysis has been completed with the involvement of employees in all geographies and has resulted in the Naturgy keys: team, innovation and ways of working.

 

Naturgy culture keys

Team: cohesion, collaboration, leadership, enthusiasm

Innovation: evolution, digitalization, flexibility

Working methods: flexible, collaborative, simplicity

 

Currently, Naturgy has several crosscutting projects underway, which allow employees to visualise the cultural keys, such as the implementation of cloud tools, the adaptation of workspaces to collaborative and flexible models, or DigitalTEAM and LEAN projects that promote transformation in order to provide collaborative and digital ways of working, efficiency and flexibility in businesses.

 

15 key words

Corporate University

Training is one of the key areas of the people model. The training and development plan is instrumented through the Corporate University, as this is a strategic lever of transformation that serves the business to build the future, create value and achieve the goals set out in the Strategic Plan.

The Corporate University's mission is to help develop professionals that make Naturgy’s vision a reality. Its aim is to ensure adequacy between the job position and the person, the acquisition of expertise linked to new needs of the organisation and the development of skills and abilities related to the Naturgy leadership and culture model.

2018 has seen consolidation of the introduction of Evolution as an on-line training platform and the new training model based on three levers: employee experience, personalisation of the training available and centralised global operations.

The Corporate University’s management model responds to the training needs through its two academies:

  • The Tech Academy guarantees the transfer of specific technical knowledge in each business, thus permitting its efficient development and ensuring quality and uniformity in all countries. Among the most relevant programmes: General Data Protection Regulation, Digital Transformation of Technical Services, Smile Project and new Law of Public Sector Contracts.
  • Transformational Leadership Academy: focused on transformation through the leadership of the executive and management team, strengthening its role as natural accelerators of organisational and cultural change. It offers a diversified and personalised training proposal managed through partnerships with the best national and international centres. Among the most relevant programmes: Take the Lead, Transformational Leadership, Savia 4.0, Avanza Programme and Innovation Programme.

Evolution of training hours per employee

NB 1: in 2017 there is a decline in average hours per employee, and generally in all indicators of training, through the consolidation of data in Chile, with a training volume that is less than the rest of the Group; and through a reduction of the number of cross-cutting programmes company-wide compared to previous years, and for the interruption of the corporate university's activity for three months while the new platform was implemented.

Corporate University's figures 2018
Satisfaction surveys answered 43.204
Participants' average satisfaction (0–10) 8,3
Average degree of application of knowledge and skills in the job (%) 77%
Number of programmes with evaluation of application 38
Average perception index (0–10) 8,0

 

Naturgy training indicators [404-1]

2018 2017 2016
Staff trained (%) 91,0 93,7 87,4
Training hours per employee  49,9 38,4 51,0
Total course hours  645.311 613.623 889.625
   Men 438.412 430.995 656.880
   Women 206.899 182.628 232.746
Annual investment in training (euros)  10.454.626 14.322.806 14.014.713
Investment in training per person (euros) 809,2 897,4 803,1
Attendees 93.379 97.604 138.872
Online hours 204.622 176.995 330.213
People who were trained through the online channel (%) 77,1 69,3 69,7
Participants’ degree of satisfaction (out of 10)  8,3 8,4 9,0
Net Promoter Score (NPS) 35,6 35,9

 

Training hours per employee and professional category

  Management team Middle managers Technicians Operators
Staff trained (%) Men 88,7 94,8 92,5 86,1
Women 89,3 91,6 93,3 93,6
Total 88,9 94,1 92,8 88,3
Training hours per employee 49,9 86,7 54,3 48,2 39,2
Total course hours 645.311 113.262 137.823 204.617 189.609

Compensation and remuneration

The concept of reward is the third of the areas on which the Naturgy model of people is built and aims to provide a framework for classification, compensation, benefits and work environment, which drives and aligns professional performance with the strategy of Naturgy.

Remuneration policy

The remuneration policy is governed by equity on an internal scale and competitiveness from the market point of view. There are two remuneration models, one for employees included in the collective bargaining agreement and another for employees not included.

In 2018, a new professional classification model has been implemented for those employees who are excluded from the agreement and the process of evaluating the positions of the new structure has begun.

Variable remuneration

The annual variable remuneration has been transformed into a structure of uniform objectives for the whole group, with metrics differentiated according to the business unit, corporation or project to which it belongs. The aforementioned metrics include economic-financial objectives, as well as safety and quality issues. In addition, a qualitative objective that measures the “how” in the achievement of the objectives is valued.

The management by objectives for managers and employees not included in the agreement, and variable remuneration for commercials, are methods in place at Naturgy as incentives for employee involvement in achieving the company’s targets and direct share in results.

 

Breakdown of personnel costs
(euros million)
2018 2017 2016
Wages and salaries 882 877 823
Social Security costs 123 134 128
Defined contribution plans 36 44 42
Defined benefit plans 9 9 9
Share-based payments 5 - -
Work carried out for the company’s fixed assets (115) (122) (109)
Others 70 67 81
Total 1010 1009 974

Social benefits and flexible remuneration

The remuneration package of Naturgyemployees is supplemented with asocial benefits system, which includes apension plan and other social benefits.On the international stage and inaccordance with the legal frameworksof each country, Naturgy has agreedto the introduction of social benefitsand reconciliation measures withemployees’ representatives.

In 2018, a flexible offer without salarysubstitution has been established,enabling the employee to personalisetheir overall remuneration. Thus,depending on the cost of theircurrent benefits, employees may beable to select the benefits that theythemselves establish.

In addition, employees in Spain havea flexible compensation system thatallows them to design the compositionof the remuneration package using theexisting product offer.

In the case of Spain, the Joint PensionPlan for Employees of the Naturgygroup is a defined contribution planfor retirement and defined benefitsin the event of death or incapacitywhilst actively working. Employeesare automatically added to the plan assoon as they are registered.

The Plan currently has a net worthof around Euros 500 million, whichis distributed among approximately6,300 active employees (99% of theworkforce), and more than2,000 beneficiaries.

In the international arena, the Group’spolicy is based on the provision ofretirement savings instruments anddeath and disability coverage whilst anactive worker, taking into account theparticularities and social welfare needsof each country.

 

Performance management and Management by Objectives (MbO) indicators (*) 


(*) Percentage of participants in the MbO system. The breakdown by gender for this indicator is available in the appendixof this report.

Labour relations

Naturgy, through its Code of Ethics, establishes the principles and behaviour guidelines that govern the performance criteria of all employees. In accordance with these, and with international legislation and the prevailing legal framework of each country where it is present, Naturgy respects the values of their respective cultures and is committed to compliance with applicable labour regulations.

Naturgy places a particular focus on the freedom to join a union, fundamental rights, collective bargaining and the culture of the agreement. Thus, in Spain, various agreements have been signed with the representation of workers in matters such as the Workers’ Pension Plan.

In the international arena, 26 negotiation processes have been completed, among which the following stand out: Chile (seven collective bargaining processes), Panama (two collective bargaining agreements) and Mexico (seven negotiations, between salary agreements and collective bargaining negotiations).

As a global result, 32 collective agreements have been reached in all areas in which Naturgy is present.

Within the scope of all societies in which Naturgy operates in 2018, there are a total of 62 unions with representation in all spheres of action, seven in Spain and 55 internationally.

Finally, it should be pointed out that, at 31 December 2018, there had been a total of 15,493 visits, enquiries and downloads of “Employment Information” on Naturalnet across the group, and 98,134 enquiries, incidents and requests through the Employee Care Service, dealt with directly by the service or through the different People Organization and Culture Departments in all countries where it is implemented.

For further information about people, please consult here.

Internal communication

Naturgy has a range of communication channels for employees, such as the corporate Intranet, Naturalnet, and the magazine Natural, which is distributed internationally and the social network Yammer. During 2018 a new channel, Naturalnews, has been launched, which operates as Naturgy’s digital newspaper. In 2018, this channel has been operational in Argentina, Spain, Mexico and Panama, and it is expected that by 2019 it will be incorporated into the remaining countries.

The transformation carried out by the company during 2018 has had an intense communication campaign. In the section of awareness campaigns, the most prominent issues were the Commitment to Health and Safety, energy volunteering, cybersecurity, compliance, customer experience and the fight against gender violence.

In addition, numerous initiatives have been introduced in 2018 to encourage active employee participation and closeness to Senior Management, through face-to-face dialogues such as the Dialogue Programme with more than 1,200 participants.


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