Naturgy has based itself on the Global Reporting Initiative (GRI) standards, more popularly known as the GRI Standards, in compiling this 2018 Corporate Responsibility Report.
The company believes that the report has been prepared in accordance with the comprehensive option of GRI Standards. The Materiality Disclosures methodology has been applied for yet another year. This methodology reviews the definition of material issues, their scope and the information on the commitment of the interested parties.
One new item, in 2018 and prior to approval of Law 11/2018 on non- financial reporting and diversity, was an analysis of materiality carried out in accordance with the recommendations of Royal Decree-Law 18/2017, aligned with the company’s commitments and corporate responsibility strategy and integrating the analysis of the degree of compliance with the Sustainable Development Goals in the countries where the company has a presence.
Furthermore, we have identified material issues at events and news through the KPMG Eye on Earth and Buzzsumo tools, which captures information from more than 300,000 different sources, including digital newspapers of 190 countries worldwide, websites of multinationals or governmental webs.
The material issues identified at the corporate level are those that:
Are of greatest relevance from the standpoint of corporate responsibility and reporting.
Can promote a more significant change in terms of economic, environmental and social impact.
Are considered most relevant to the stakeholders of the company.
Naturgy has identified eleven material issues of the utmost importance. It has also identified 15 other matters of interest.
|#||Issue identified||Nature of the issue|
|Issues of utmost importance||1||Emissions and climate change.||Environmental.|
|2||Occupational health and safety.||Social.|
|3||Access to energy.||Social.|
|4||Development of the communities and social action.||Social.|
|5||Innovation and sustainable technology.||Economic.|
|6||Customer care and satisfaction.||Economic.|
|8||Talent retention and attraction.||Social.|
|9||Energy efficiency and consumption.||Environmental.|
|10||Assessment of the supply chain.||Economic.|
|11||Diversity and equal opportunities.||Social.|
|Other issues of interest||12||Responsible purchasing.||Economic.|
|13||Employability and employment.||Social.|
|14||Health and safety of consumers and of society.||Social.|
|16||Management of leaks, effluent and waste.||Environmental.|
|17||Assessment of human rights.||Social.|
|21||Socio-economic and environmental compliance.||Economic.|
|22||Political influence and lobbying.||Economic.|
|23||Indirect economic impacts.||Economic.|
|24||Materials used, recycled and reused.||Environmental.|
|25||Freedom to join a union and management of relations with workers.||Social.|
|26||Cybersecurity and information security.||Economic.|
For the updating of material issues
carried out in 2018, we have followed
the 33 specific standards defined by
GRI and they have been adapted to the
company’s own characteristics.
Furthermore, for the prioritisation and definition of material issues we conducted interviews with different areas of the company and with external stakeholders, and have included other inputs, both internal and external.
For each of the eleven material issues identified, Naturgy has collected, identified and analysed the following information in its materiality study:
In the identification and prioritisation of material issues, the following sources were taken into consideration:
Naturgy has identified the relevance of each material issue in each country in which it operates. These issues are identified according to the agenda of each country, taking into account the degree of achievement of the Sustainable Development Goals in these countries and establishing the key targets on which the company must focus through commitments at local level to help achieve these.
The company analysed the following countries: Australia, Algeria, Argentina, Belgium, Brazil, Chile, Costa Rica, Dominican Republic, Egypt, France, Germany, India, Ireland, Italy, Jamaica, Japan, Jordan, Luxembourg, Morocco, Mexico, the Netherlands, Oman, Panama, Pakistan, Peru, Portugal, Puerto Rico, Singapore, South Africa, Spain and UK.
In order to respond to the GRI
Standards, a map of material issues
that identify what represents a
material issue for Naturgy and where
it is relevant is provided. As regards
the latter criterion, Naturgy identifies
the materiality of the issue from three
|#||Material issues for Naturgy||GRI Standard related to the material issue||Nature||Stages of the value chain where the material issues have greatest impact||Impact of the aspect inside and/or outside the organisation by stakeholder||2018 Corporate Responsibility Report chapter that deals with the issue|
|1||Emissions and climate change||305: Emissions.||EN||Society and administrations.||Responsible management of the environment.|
|2||Occupational health and safety||403: Occupational health and safety.
EU25: Number of injuries and fatalities to the public involving company activities.
|SO||Employees and suppliers.||Health and safety.|
|3||Access to energy||EU26: Percentage of population unserved in licensed distribution or service areas.
EU27: Number of residential disconnections for non-payment.
EU28: Power outage frequency.
EU29: Average power outage duration.
EU30: Average plant availability factor by energy source and by regulatory regime.
|SO||Customers, society, administrations and regulatory bodies.||Commitment to society.|
|4||Development of the communities and social action||413: Local communities.
EU22: Number of people physically or economically displaced and compensation.
OG10: Number and description of significant disputes with local communities and indigenous people.
OG11: Number of sites that have been decommissioned and sites that are in the process of being decommissioned.
|SO||Society.||Commitment to society.|
|5||Innovation and sustainable technology||OG2: Total amount invested in renewable energy.||EC||Customers.||Avant-garde and sustainable innovation / Service excellence.|
|6||Customer care and satisfaction||417: Marketing and labelling.||EC||Customers.||Service excellence.|
EU13: Biodiversity of offset habitats.
OG4: Number and percentage of significant operating sites in which biodiversity risk has been assessed and monitored.
|MA||Society.||Responsible management of the environment.|
|8||Talent retention and attraction||102-7: Size of the organization (number of employees).
102-8: Information on employees and other workers.
404: Training and education.
|SO||Employees and suppliers.||Interest in people.|
|9||Energy efficiency and energy consumption||302: Energy.||EN||Customers and society.||Responsible management of the environment.|
|10||Assessment of the supply chain||102-9: Supply chain.
102-10: Significant changes to the organization and its supply chain.
308: Supplier environmental assessment.
404: Training and education.
414: Supplier social assessment.
|EC||Suppliers.||Responsible supply chain.|
|11||Diversity and equal opportunities||401: Employment.
405: Diversity and equal opportunities.
|SO||Employees and suppliers.||Interest in people.|
This report contains the consolidated
financial and non-financial data of
Naturgy, referring to all the activities
carried out during 2018 as a global gas
and electricity operator, although they
show peculiarities in some chapters.
As a consequence of the divestment process of the mining business in South Africa formalised in 2018, and described in Note 11 “Non-current assets and disposable groups of items held for sale and discontinued operations” of the consolidated annual accounts, the 2017 consolidated profit and loss statement and the trading figures for 2017 have been restated, for comparative purposes with the information concerning 2018, in application of IFRS 5.
In 2018, this information on discontinued activities refers to companies in Moldova, Kenya and South Africa. The companies in Kenya and South Africa were sold prior to the year-end, which has entailed an additional difficulty in obtaining non- financial information with regard to certain indicators. For the purpose of clarifying the scope used in the indicators and to provide the best transparency possible, in each chapter of the corporate responsibility report we will use a footnote to specify those indicators for which we have been unable to obtain data from some of these countries.
In the field of human resources, the information reported corresponds to the countries in which Naturgy is present and has incorporated companies with hired personnel assigned to them and where the company performs centralised management of its human resources policies, except for the number of employees and the percentage of men/women, which take into account all Group employees according to consolidation scope. The indicators that represent the evolution over the year, will include the information from the companies held for sale, provided that the opposite is not specified in a footnote, while the indicators that represent information at the year-end will not include information about these companies.
The information included in the environment section refers solely to those companies or activities in which the participation is equal to, or greater than, 50%, that have the capacity to influence environmental management and which have a significant capacity to impact environmental data, considering the global data.
With regard to compliance, the report shows the fines greater than Euros 60,000 imposed against the company in 2018 which were final judgements in channels of administrative review.
The complete list of companies making up Naturgy at 31 December 2018 appears in Annex I of the consolidated annual accounts, “Companies of Naturgy”.
Furthermore, the changes in the scope of consolidation are described in Annex II to the consolidated annual accounts.
The company prepares its report in
accordance with the GRI Standards,
and includes the applicable additional
information required by the “Utilities”
and “Oil and gas” supplements. The
company believes that the report has
been prepared in accordance with the
comprehensive level of GRI Standards.
This report has also been drawn up
in accordance with the AA1000
AP (2018) Standard and the United
Nations Guiding Principles Reporting
The consideration of the principles set out in the following table ensures that the information satisfies the guarantees required by the foregoing standards.
The integrity, sound and truthful
nature of the information given in this
report are maintained by the policies
and procedures included in Naturgy
internal control systems and their
purpose includes guaranteeing the
correct presentation of the company's
information to third parties.
In the said policies and in accordance with the Global Reporting Initiative recommendations, Naturgy conducts an annual external verification of the contents of its report.
This review is made by an independent expert, EY, which reviews the adaptation of the contents of the Corporate Responsibility Report to the provisions laid down in the Global Reporting Initiative Guidelines and the AA1000 AP (2018) Standard.
As a result of this process, an independent review report is drawn up to include the goals and scope of the review, as well as the verification procedures used and the corresponding conclusions, which can be consulted in the “Additional information” chapter of this report.
In addition to this Corporate
Responsibility Report, in 2018 Naturgy
is publishing the Integrated Annual
Report, the Corporate Governance
Report and the Audit and Control
Committee Report, all pertaining to
Furthermore, special mention must be made of the fact that Naturgy publishes corporate responsibility reports in Argentina, Brazil, Chile, Mexico, and Panama.
Readers can send their doubts, queries or requests for information to the company's website, https://www.naturgy.com/inicio
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