abengoa bioenergy - Abengoa Bioenergía
Transcription
abengoa bioenergy - Abengoa Bioenergía
ABENGOA BIOENERGY The global biotech ethanol company 2012 Annual Report Corporate Social Responsibility Report 2012 Corporate Social Responsibility 1 ABENGOA BIOENERGY Index Letter from the CEO ................................................................................................................................................................ 5 Our business ........................................................................................................................................................................... 8 Global presence ................................................................................................................................................................. 11 Production plants............................................................................................................................................................... 12 Key figures ........................................................................................................................................................................ 12 Our activities ...................................................................................................................................................................... 15 Main achievements ............................................................................................................................................................ 21 Our products ..................................................................................................................................................................... 23 Awards and recognition..................................................................................................................................................... 28 Policies and management model ........................................................................................................................................... 30 Corporate Social Responsibility Policy ................................................................................................................................. 31 Stakeholders ......................................................................................................................................................................... 33 Dialogue channels ............................................................................................................................................................. 33 Our shareholders ............................................................................................................................................................... 37 Shareholding structure....................................................................................................................................................... 37 Principles of the Global Impact .......................................................................................................................................... 39 Occupational health and safety .......................................................................................................................................... 41 Our customers ................................................................................................................................................................... 48 Comunication .................................................................................................................................................................... 48 Our suppliers ..................................................................................................................................................................... 49 Greenhouse gas inventory ................................................................................................................................................. 51 Responsible purchasing system .......................................................................................................................................... 51 Environment .......................................................................................................................................................................... 53 Policy, compromise and objectives ..................................................................................................................................... 54 Main environmental indicators ........................................................................................................................................... 56 Environmental impact control, awareness, and minimization ............................................................................................. 57 Products and services ......................................................................................................................................................... 67 Fines and sanctions ............................................................................................................................................................ 67 Environmental expenditure ................................................................................................................................................ 68 Community ........................................................................................................................................................................... 69 Programmes ...................................................................................................................................................................... 70 Partnerships and agreements ............................................................................................................................................. 71 Conferences ...................................................................................................................................................................... 73 Asociations ........................................................................................................................................................................ 73 Transparency and fight against the corruption ................................................................................................................... 74 Economic performanceCreation of value ........................................................................................................................... 75 Corporate governance........................................................................................................................................................... 78 Board of directors .............................................................................................................................................................. 79 Board committees .............................................................................................................................................................. 79 Remuneration and other provisions ................................................................................................................................... 82 Risk management model ................................................................................................................................................... 83 Additional information .......................................................................................................................................................... 85 CSR report principles and scope ......................................................................................................................................... 86 External verification ........................................................................................................................................................... 88 Information on dependent companies ............................................................................................................................... 89 External verification reports ................................................................................................................................................... 91 2012 Corporate Social Responsibility 2 ABENGOA BIOENERGY Index GRI index .............................................................................................................................................................................. 95 2012 Corporate Social Responsibility 3 ABENGOA BIOENERGY Index 2012 Corporate Social Responsibility 4 ABENGOA BIOENERGY Index Letter from the CEO 2012 Corporate Social Responsibility 5 ABENGOA BIOENERGY Letter from the CEO We have been one of the global biofuel leaders for the past several years. We have built plants when rivals went out of business. We have increased our technology investment when others folded. We have entered new geographies when others downsized. But the market conditions have changed. Market instability has affected margins across the board and the ability to achieve consistent results has been affected. The record drought affected very negatively the grain market and created a challenging year for ethanol producers. Inventory levels remained high while gasoline demand continued to disappoint. More importantly, the market has made companies reconsider their modus operandi. Amid this difficult environment, Abengoa Bioenergy is embracing the challenge. Market conditions have been very challenging which paradoxically has been beneficial for our business strategy. The reason is that it expedited the process that has already begun for Abengoa Bioenergy: the transformation from a global biofuel leader to a biotech company that would go beyond biofuels. More importantly it signaled the need for a new business model which will reduce market dependency and bring more stability and consistency to our business. But we already knew the challenge was coming; our vision for the future has not changed. What is also the same is our core competency remains our focus on technology. What is different is how we are going to get there, how we will change the way we operate today. In the process, we need to maintain our current time-to-market leading position in technology, which will take a lot of effort and resources. We continue to seek solutions based on technology to boost our profits in the short term and build the base for future growth. Given the current market conditions, over the next couple of years, we are exploring options to adapt 1G assets to have flexibility in a low margin environment. Our priorities focus on W2B and biobutanol as key start projects Abengoa is willing to invest in to boost our margins in the short run. Thus, we will leverage our 1G assets in terms of already acquired and new feedstock sourcing, technology, production, logistics as well as marketing and trading. At the same time, we would tap into new markets with new products and diversify our revenue stream while exploring new technology processes and new areas of feedstock that would give us more both flexibility and stability. The construction start of our first biomass-to-ethanol commercial plant at Hugoton has been a milestone in our development as the project will showcase our ability to bring technology to the market in a commercial scale size plant at an economically viable way. We are making tremendous progress in the construction of the plant and we expect the project to be a reality in 2013. On a broader scale, we are working towards providing a one-stop biotech solution to our customers. New 2G projects and bioproducts also remain priorities for us over the longer term, following the implementation of the efficiency plans which will streamline operations and makes us leaner as an organization. The idea is to have these projects offered to third parties which would create a brand new revenue source while capitalizing on the progress we would have achieved by the time we open Hugoton. The new business model that is emerging for Abengoa Bioenergy will reposition the company in the direction of concessiontype growth model. We will leverage technology development, focus on less-commodity-based margin while also build high technological barriers. On a macro level, it would leverage Abengoa’s knowhow and network while reducing equity requirements. Allowing for one-stop solutions through the value chain, our approach will mitigate market risk, will provide access to thirdparty capital and allow for asset rotation, all key elements of the concession-type infrastructure. By combining engineering, procurement, construction, finance, equity and O&M, the model will provide concession model revenues that include technology fees O&M service fees, etc. in addition to induced business for Abengoa. For Abengoa Bioenergy, the model will 2012 Corporate Social Responsibility 6 ABENGOA BIOENERGY Letter from the CEO allow the use of technology for agricultural biomass and bagasse conversion as well as technology applied for solid municipal waste. The plan is no doubt ambitious but with great potential benefits that will change the way we do business. The model will also allow us to think differently about our business and how we should mitigate the risk elements that affect our operations and profitability. Over the next 5-10 years, Abengoa Bioenergy should be able to produce a multitude of fuels and bioproducts from a variety of feedstock including waste, cereal, cane, energy crops and to provide one-stop biotech solutions to third parties. The company will continue to diversify its revenue stream and continue to secure feedstock in an economic and operationally efficient manner to increase its profits while being able to access multiple markets. Hopefully, the company would be a pioneering leader in W2B and biobutanol production as well as planned the construction of new 2G facilities after Hugoton and bioproduct production. 2012 Corporate Social Responsibility 7 ABENGOA BIOENERGY Our business Our business 2012 Corporate Social Responsibility 8 ABENGOA BIOENERGY Our business Our business Abengoa Bioenergy carries out industrial production activities in the energy sector. It develops biofuels for transportation, as well as bioethanol and biodiesel among others, plus chemical bioproducts which use biomass (cereals, sugar cane, cellulose biomass, oleaginous seeds, etc.) as raw material. Biofuels are used in the production of gasoline additives (ETBE) as well as in direct mixtures with gasoline or diesel oil. Abengoa Bioenergy is also developing new biofuels (kerosene for aviation and biodiesel from sugar). The chemical bioproducts will be identical to those produced at present by the petrochemical industry in terms of functionality but, in turn, they will be more sustainable and will focus on immediate replacement within the already existing markets. As sources of renewable energy, biofuels and chemical bioproducts reduce CO2 emissions and enhance the safety and diversification of the energy supply, thus decreasing the dependence on fossil fuels used in the automotive, aviation and petrochemical industries and improving compliance with the Kyoto Protocol. Current market situation The new regulations of United States and the European Union require the biofuel industry to comply with strict sustainability criteria. Within this context, markets are focusing on improving the existing first-generation biofuels and their management, as well as on developing the new generations of biofuels. These regulations refer both to the reduction of greenhouse gas (GHG) emissions in the biofuel life cycle and to the certification of the origin of the raw material used in its production. In order to address the legal demands, valid for the first and second-generation biofuels, Abengoa Bioenergy has implemented accountability and verification systems for greenhouse gas (GHG) emissions and raw material certification systems, which allow differentiating between biofuels that are sustainable and those that must be rejected, in the battle against climate change. In terms of second-generation, the development of the enzymatic hydrolysis technology allows converting agricultural waste, wood waste and other potential energy crops into ethanol, without affecting the ecological balance or the food chain. At the same time, second-generation biofuels have a strong potential for reducing emissions compared to the fossil fuels that they replace. Such technology represents the most state-of-the-art and feasible technological solution among all of those being currently investigated. 2012 Corporate Social Responsibility 9 ABENGOA BIOENERGY Our business Historic 2012 Corporate Social Responsibility 10 ABENGOA BIOENERGY Our business Global presence The global biotech ethanol company Abengoa Bioenergy is the leading European biofuel producer (with a production capacity of 396 Mgal) and one of the main producers in United States (380 Mgal) and Brazil (62 Mgal), with a total installed production capacity of 839 Mgal distributed among 14 plants, in five different countries of three continents. Furthermore, it is constructing the world’s first secondgeneration (2G ) commercial plant. Abengoa Bioenergy Biomass of Kansas will have the capacity to produce 25 Mgal per year of bioethanol as from corn stover, wheat straw, and switch grass. In 2012, Abengoa Bioenergy has started a thorough process to create value for its shareholders. The company has identified opportunities that will allow the diversification of bioproducts and the production of higher value-added biofuels and compounds, thus generating greater environmental benefits. 2012 Corporate Social Responsibility 11 ABENGOA BIOENERGY Our business Design production capacity Production plants Ecocarburantes Españoles Bioethanol: DGS: Electricity: Bioetanol Galicia Bioethanol: DGS: Electricity: Biocarburantes de Castilla y León Bioethanol: DGS: Electricity: Abengoa Bioenergía San Roque Biodiesel: Gliceryne: Abengoa Bioenergy France Bioethanol: DGS: Abengoa Bioenergy Netherlands Bioethanol: DGS: Electricity: Abengoa Bioenergy Corporation Colwich Bioethanol: DGS: Abengoa Bioenergy Corporation Portales Bioethanol: DGS: Abengoa Bioenergy Corporation York Bioethanol: DGS: Abengoa Bioenergy of Nebraska Bioethanol: DGS: Abengoa Bioenergy of Illinois Bioethanol: DGS: Abengoa Bioenergy of Indiana Bioethanol: DGS: Abengoa Bioenergia São Luiz Bioethanol: Sugar: Electricity: Abengoa Bioenergia São João Bioethanol: Sugar: Electricity: Abengoa Bioenergy Bioethanol: Biodiesel: DGS: Sugar: Gliceryne: Electricity: 40 Mgal 110,000 t 204,000 MWh 50 Mgal 130,000 t 204,000 MWh 55 Mgal 120,000 t 140,000 MWh 60 Mgal 18,500 t 65 Mgal 145,000 t 125 Mgal 360,000 t 400,000 MWh 25 Mgal 70,000 t 30 Mgal 75,000 t 55 Mgal 145,000 t 90 Mgal 230,000 t 90 Mgal 230,000 t 90 Mgal 230,000 t 24 Mgal 285,000 t 172,000 MWh 38 Mgal 360,000 t 201,500 MWh 782 60 1,845,000 645,000 18,500 1,316,500 Mgal Mgal t t t MWh Note: approximate figures. Abengoa Bioenergy New Technologies pilot plants not included. 2012 Corporate Social Responsibility 12 ABENGOA BIOENERGY Our business Key figures Income Abengoa Bioenergy´s income has been practically stable in relation to the previous year, overcoming operational difficulties. (1M = 1,000,000) EBITDA Thanks to the diversification of products and raw materials as well as the proper management of our productive assets, Abengoa Bioenergy has managed to obtain an EBITDA over 91 M€ despite of the adverse economic and market conditions. Technological investment Abengoa Bioenergy strongly advances in the commercialization of cellulosic ethanol technology and continues to bet on the development of new technologies, along with the U.S. Department of Energy, the Spanish Ministry of Industry and the European Union Framework Program. In 2012, the investment registers an outstanding increase with the ongoing of the construction of the second generation bioethanol plant in Hugoton. 2012 Corporate Social Responsibility 13 ABENGOA BIOENERGY Our business GHG Emissions reduction The use of over 665.5 Mgal of biofuels traded by Abengoa Bioenergy reduces CO2-equivalent emissions by approximately 2.89 Mt, equivalent to the annual emissions of approximately 786,000 vehicles (1 Mgal = 1 million gallons) (1 Mt = 1 million tons) Sources: 1.Well-To-Wheels Analysis of future automotive fuels and powertrains in the European context 2. European Parliament and Commission directive relative to the promotion of the use of energy from renewable sources. Production of biofuels Abengoa Bioenergy currently has fourteen bioethanol and biodiesel production plants, distributed between Europe (Spain, France and Holland), United States and Brazil. Throughout 2012, the production of biofuels of the company reached 665.6 Mgal. (1 Mgal/y = 1 million gallons per year) (1 ML/y = 1 million liters per year) Production of electricity Some of the company’s bioethanol production facilities have cogeneration systems, which with a good use of sugar cane bagasse and other fuel generate the steam and electricity necessary to operate the bioethanol plants. The production of electrical energy throughout the year 2012 has been of 1,316 GWh approximately. 2012 Corporate Social Responsibility 14 ABENGOA BIOENERGY Our business Our activities Abengoa Bioenergy is a benchmark company in the development of new technologies geared towards the production of biofuels,biochemical products and the sustainability of raw materials, channeling to such end a tremendous amount of resources into research. The presence of a trading division means that the company is also a service provider capable of offering global solutions, with impressive capacity for marketing and managing commodities, reliably backed by its global production and raw material procurement capacities and highly efficient operations – cornerstones that afford reliability and critical mass, which are key to optimum business development. The combination of international trading and cellulosic bioethanol technology capacities of Abengoa Bioenergía, along with the agricultural, productive and local trading capacities gives rise to very important synergies that will make it possible to achieve significant growths in the bioethanol global market and have the technology that will enable obtaining lower costs per liter of ethanol. Abengoa Bioenergy contributes to sustainable development by marketing fuel compounds obtained from renewable sources (biofuels) through the use of environmentally-friendly technologies that help bring about a net reduction in polluting emissions, for use in both public transportation and private vehicles. The company develops innovative technological solutions through continuous R&D investment. These solutions are put into practice in production processes, allowing the company to enjoy the same production costs as for conventional fossil fuels, while affording our DGS coproduct a distinct competitive edge. Abengoa Bioenergy honors its commitment to creating value for shareholders and contributes to the personal and professional development of its employees through continuous training and by setting up and overseeing individualized plans. Abengoa Bioenergy creates new opportunities for sustainable rural development by providing incentives for energy crops and the creation of farming industries, thus helping to maintain employment and income levels in rural areas. Bioethanol and biodiesel are renewable and clean energy sources which, for some time now, have proved to be a reliable and effective replacement for gasoline and diesel fuel in vehicle engines, while also helping to diversify and improve the security of the energy supply. Their use, either in a pure state or blended with fossil fuels, reduces CO2 emissions, slows down climate change, and reduces the emission of polluting agents into the environment. The business unit covers the management of the following companies: Europe Biocarburantes de Castilla y León, S.A. Bioetanol Galicia, S.A. Bioetanol Galicia Novas Tecnoloxias, S.A. Ecoagrícola, S.A. Ecocarburantes Españoles, S.A. Abengoa Bioenergía, S.A. Abengoa Bioenergía Biodiésel S.A. Abengoa Bioenergía Inversiones, S.A. Abengoa Bioenergía Nuevas Tecnologías, S.A. Abengoa Bioenergía San Roque, S.A. 2012 Corporate Social Responsibility 15 ABENGOA BIOENERGY Our business Abengoa Bioenergy France, S.A. Abengoa Bioenergy Germany GmbH. Abengoa Bioenergy Hannover GmbH. Abengoa Bioenergy Netherlands, B.V. Abengoa Bioenergy Trading Europe, B.V. Abengoa Bioenergy UK Limited. Asa Bioenergy Holding, AG. SAS Abengoa Bioenergía Biomasse France. United States Abengoa Bioenergy Biomass of Kansas, LLC. Abengoa Bioenergy Corporation. Abengoa Bioenergy Engineering & Construction, LLC. Abengoa Bioenergy Funding. Abengoa Bioenergy Holdco, Inc. Abengoa Bioenergy Hybrid of Kansas, LLC. Abengoa Bioenergy Investments , LLC. Abengoa Bioenergy Maple, LLC. Abengoa Bioenergy Meramec Renewable, Inc. Abengoa Bioenergy New Technologies , Inc. Abengoa Bioenergy of Illinois, LLC. Abengoa Bioenergy of Indiana, LLC. Abengoa Bioenergy of Kansas, LLC. Abengoa Bioenergy of Nebraska, LLC. Abengoa Bioenergy of SW Kansas, LLC. Abengoa Bioenergy Operations , LLC. Abengoa Bioenergy Outsourcing, LLC. Abengoa Bioenergy Renewable Power US,LLC. Abengoa Bioenergy Technology Holding , LLC. Abengoa Bioenergy Trading US, LLC. Abengoa Bioenergy US Holding, Inc. Brazil Abengoa Bioenergia Agroindustria Ltda. Abengoa Bioenergia Agroindustria Trading US Inc. Abengoa Bioenergia Brasil. Abengoa Bioenergía Inovaçoes Ltda. Abengoa Bioenergia Santa Fe Ltda. Abengoa Bioenergia Trading Brasil Ltda. The company’s activities can be grouped in 6 major areas: Grain procurement 2012 Corporate Social Responsibility 16 ABENGOA BIOENERGY Our business Bioethanol origination Production Bioethanol, DGS, and sugar trading Cogeneration New technologies Grain procurement A key element in the good results of the activities developed by the Bioenergy business group is the acquisition of cereal grain as raw material. Currently, the most important grain cereal for the production of bioethanol in Abengoa Bioenergy’s plants are wheat, barley, corn and sorghum, not only for the alcohol yield, but also for their great proteic proportion, highly valued in the feedstock sector (DGS). As for biodiesel production, the most used oils are soy and palm. Throughout its brief history, Abengoa Bioenergy has managed to acquire great experience, both in important purchases of grain in the market, and in the making of contracts directly with farmers, thus ensuring that the group’s plants have the amount of cereals they need. Similarly, the company’s experts have great knowledge of the applicable regulations to operate in the European Union and within the American Government. In Abengoa Bioenergia Brasil the company grows sugarcane while maintaining sustainable rural development methods, biodiversity, and regional economic growth. Through the subsidiary company Abengoa Bioenergia Agricola, production plants supply is assured, both establishing contracts with land owners, carrying out the necessary tasks for a combined use of the land, and with farmers, providing the necessary resources and advice for best performance. Abengoa Bioenergía has developed internal capabilities that have also allowed it to diversify the procurement of raw material for its 2G plant in Hugoton. In this case, the plant will obtain agricultural waste that currently has no value for the farmer and from other energy crops in marginal areas which up to now have been abandoned. Abengoa Bioenergía has developed internal capabilities that have also allowed it to diversify the procurement of raw material for its 2G plant in Hugoton. In this case, the plant will obtain agricultural waste that currently has no value for the farmer and from other energy crops in marginal areas which up to now have been abandoned. Bioethanol origination In addition to Abengoa Bioenergy’s own bioethanol production capacity, which is marketed by the trading subsidiaries, bioethanol origination from third party producers is also a large part of the business, adding the additional capacity to a common pool, which allows for a greater flexibility and competitiveness towards the clients portfolio. Production The main product, bioethanol, is produced in the plants in Europe, United States and Brazil. Obtained from cereal grain and sugar cane, through chemical processes and treatments, bioethanol is used to produce ETBE (a gasoline additive), or for its direct mixing with gasoline, with different percentages of bioethanol, the most common being e85, e15, e10 and e5 (gasoline with percentages of bioethanol of 85, 15, 10, and 5 % respectively). 2012 Corporate Social Responsibility 17 ABENGOA BIOENERGY Our business At Abengoa Bioenergia San Roque biodiesel is produced from soy and palm raw vegetable oils. This plant is annexed to Cepsa's refinery to which it supplies biodiesel (FAME). In this way, fuel composed of 5% biodiesel and 95% diesel is obtained. Another product obtained in Abengoa Bioenergia Brasil is sugar from sugar cane crops. This is carried out in the agroindustrial units of Saõ Luiz and São João, in the state of São Paulo. The same extraction equipment (same grinders) and auxiliary systems are used for both the production of sugar and the production of bioethanol from sugar cane. As a co-product from the process of producing bioethanol from cereals the so-called DGS is obtained, a high protein compound, resulting from the removal of the cereal starch which turns out to be optimal for the manufacture of livestock food. Another co-product from the process of obtaining bioethanol from sugar cane is sugar cane bagasse, which is used as fuel in power cogeneration plants which are annexed to the bioethanol production plants. Marketing of bioetanol, DGS and sugar Abengoa Bioenergía has offices at strategic points for the global trading and export of bioethanol, located in Rotterdam, Holland, with immediate access to the Europoort; in St. Louis, USA, in the heart of the main area for grain production and livestock breeding in the country; and in Sao Paulo, Brazil, in the main area for the production of bioethanol from sugar cane. From all of these regions, the demand generated in the European, American and Brazilian markets is met, both for bioethanol, as well as for DGS and sugar. Market fluctuations, political conditions in the different geographic zones, and other factors affecting the company's activities, both in terms of the acquisition of raw materials and in the production of marketed products, are analyzed in detail from a global point of view, with the aim of obtaining a better vision of the world market. A thorough analysis and risk management means an improved process performance, always within the context of sustainable development, respecting the environment, human rights and the community as one of its maxims. Considering all of this, Abengoa Bioenergía has the opportunity to optimize supplies to different markets thanks to the management of the export and import decision and, therefore, it offers its clients the option of choosing the solution that best suits their needs, providing the necessary reliability and flexibility in the supply of bioethanol. Cogeneration Some of the current bioethanol production facilities are equipped with co-generation systems that by using either natural gas or sugar cane pulp generate the vapor and the electricity required to operate the bioethanol plants. At present, the cogeneration systems of the plants in Spain, Holland and Brazil, produce a greater amount of electricity than the plant's needs, the excess being fed to the electricity grids of each country, leading to greater profitability and sustainability of the facilities. 2012 Corporate Social Responsibility 18 ABENGOA BIOENERGY Our business New technologies Abengoa Bioenergía Nuevas Tecnologías (ABNT) began its operations in 2003 with the purpose of positioning Abengoa Bioenergía as the leading innovator in the Bioenergy industry. The mission is to develop leading edge technological processes for the production of bioethanol and co-products. The team of engineers and scientists, together with other R&D centers, universities and industrial partners, develops innovative processes in order to increase the bioethanol yield in dry mills, improve the quality of co-products, develop new co-products and develop the biomass technology for the production of ethanol and co-products. Likewise, it leads the conceptual design and regulatory surveillance in terms of sustainability of the three geographic locations of Abengoa Bioenergía. As part of the business strategy, Abengoa Bioenergía Nuevas Tecnologías will develop and register the intellectual property to provide technology to third parties under management agreements. The mission of Abengoa Bioenergía Nuevas Tecnologías consists of developing and demonstrating sustainable technological solutions through science and innovation, in order to meet Abengoa Bioenergia’s strategy plan targets, which include the following: Developing and marketing biomass technologies at competitive prices. Developing evaluation processes of the urban solid residues for the production of biofuels. Developing and implementing catalytic processes for the production of biofuels and bioproducts. Administering management systems (technological procedures and solutions) that ensure the compliance with the sustainability requirements of biofuels. Developing and marketing technology for the production of added value chemicals from lignin, sugars and ethanol. Promoting the development of energy crops. Developing the biomass market. Develop and improve new enzymes for cellulose breakdown. Carrying out techno-economic analysis and advanced life cycles of the CO2 capture plant by producing micro-algae. 2012 Corporate Social Responsibility 19 ABENGOA BIOENERGY Our business Developing final programs for the use of biofuels. Changes in size, structure and ownership during 2012 For a complete list of companies please refer ‛Dependent companies information‛ 2012 Corporate Social Responsibility 20 ABENGOA BIOENERGY Our business Main achievements This has been a year of consolidation and growth for Abengoa Bioenergy, in the US, Europe, and Brazil. Contrary to expectations, due the the global crisis, which has influenced all company’s activities, 2012 has been a year full of successes. Europe The most significant milestones achieved in Europe during 2012 have been: Completion of the construction and commissioning of the Ecoalga Project pilot plant. Consolidation of the operations in Abengoa Bioenergy Netherlands in Europoort, Rotterdam, Holland. Promotion and expansion of the direct blending biofuel (e85) service station network, with 31 supply points and 211 Mgal ditributed in Spain. Development of the ethanol direct blending in Spain. Consolidation in the sales for higter ethanol blends (e10) in Europe, particularly in France, Germany and Finland. Agreement with the oil operation company Total ACS (France) in order to produce second-generation bioethanol to be used for motor sport competitions. Team sponsorship of a in the Spain rally championship. Abengoa Bioenergy will supply the e85 bioethanol for the first and single racing car in the country propelled by a biofuel. 100 % delivery of bioethanol, providing Abengoa Bioenergy’s biofuel sustainability certification. Distinguished with the ‚Sustainable Biofuels Award‛ for the sustainable development in the execution of the RBSA (RED Bioenergy Sustainability Assurance) certification system. First delivery of biofuels, certified under Abengoa Bioenergy's plan, to the German market. Awarding, with the participation of other companies, of the Bio-Andalus project addressed to the experimental development of bioproducts in Andalusia, Spain. Awarded the prize of the Spanish Independent Commission for Safety and Hygiene at Work in the Chemical Industry and Similar (COASHIQ) by Bioetanol Galicia for the achievements in the reduction of on-site accidents. Celebration of the ‚XI World Biofuels Conference‛. Participation in the ‚2012 BP Forum on Energy and Sustainability‛. Received the favorable audit report SA8000 that certifies the total of Abengoa Bioenergy companies in Europe in this International Social Responsibility Standard. Continuation of the STOP program, obtaining an improvement in on-site work safety at the facilities of Abengoa Bioenergy Europe, as well as in personnel performance. Production of 295 Mgal of bioethanol. Production of 715,803 t of DGS (corn, wheat and barley). Increase in the direct sales of SGD to global target markets. United States For Abengoa Bioenergía, this has been a year of consolidation and growth in the United States. During 2012, the company reached the following achievements in the United States market: Fulfillment of more than 50 % of the construction milestones in the new production facility of Abengoa in Hugoton, Kansas., cuya apertura está prevista en 2013. Selection of Abengoa Bioenergy as one of the e15 producers authorized in USA. 2012 Corporate Social Responsibility 21 ABENGOA BIOENERGY Our business Successful validation of 2G technology in the pilot plant of York, Nebraska, with an average of more than 272 L of ethanol per ton of dry biomass residue. Improvement of the logistical flexibility and increase of the storage capacity to 3.5 Mgal at the Houston terminal. Optimization of barge traffic by the Mississippi and Ohio rivers in order to increase the export activity of both ethanol and DGS (Distillers Grains with Solubles).. Renewal of the ISO 9001, ISO 14001 and OHSA 18001 certifications for all the companies of USA. Implementation of the RBSA program in ABC York, ABI and ABIL to facilitate the classification of ethanol supporting the sustainability initiatives. Obtained the prize ‚Norfolk Southern Railroad Chemical Safety Award‛ by Abengoa Bioenergy of Illinois. The award "Greater St. Louis Top 50‛has been obtained. This award recognizes Abengoa Bioenergy as one of the most outstanding companies located in St. Louis for the fourth consecutive year. Obtained the certification of the greenhouse gas inventory system of Abengoa Bioenergy companies in USA according to the ISO-14064 standard. Participation in 2012 Biomass Conference in Washington, D.C. Successful implementation of the Social Responsibility Program SA 8000 at Abengoa Bioenergy in United States. Continuation of the STOP program, obtaining an improvement in on-site work safety at the facilities of Abengoa Bioenergy United States, as well as in personnel performance. Production of 305 Mgal of bioethanol and 840,707 t of DGS. Abengoa Bioenergía joins the new coalition "Fuels America". Brazil During 2012, the company reached the following achievements in Brazil market: Consolidation of the operations of the two cogeneration plants in Brazil, making a total installed capacity of 140 MW. Start of the operation of the new cane crushing plant São Luiz, in Brazil, increasing the capacity up to 3.5 Mt per year. Selection of Abengoa Bioenergy Brazil by the Banco Nacional de Desarrollo Económico y Social de Brasil (BNDES – National Bank for Economic and Social Development in Brazil) for developing a second-generation ethanol plant based on sugar cane. Conclusion in the Project Direction Program (DPA) 2012 by Abengoa Bioenergy Brazil. Execution of the implementation of the STOP Program in Abengoa Bioenergy Brazil. ISO 14001 and OHSAS 18001 certifications of the Abengoa Bioenergy São João cogeneration plant. ISO 14064 certification for the inventory of greenhouse gas (GHG) emissions. Set up of 'Proyecto Renovación' in Abengoa Brazil that qualifies sugar cane farmers to develop other activities. Obtained the National Commitment Seal in Brazil for improving the work conditions in the sugar cane. Production of 27.5 Mgal of bioethanol. Production of 411,875 t of sugar. 2012 Corporate Social Responsibility 22 ABENGOA BIOENERGY Our business Our products Bioethanol Today, we can state that Abengoa Bioenergy is a worldwide reference in the development of first-generation bioethanol and production of bioethanol as from biomass (2G). This year we have worked on a greater development of techniques and mechanisms for the production of second-generation bioethanol, that is, production of bioethanol as from agricultural waste, wood waste and other potential energy crops, without affecting the ecological balance or the food chain. First-generation bioetanol Bioethanol is obtained on an industrial scale from cereal fermentation, prior enzyme hydrolysis and after a distillation process which eliminates volatile impurities generated during the process, followed by another dehydration process which helps eliminate excess water from distillation. Under these conditions, bioethanol is directly mixed with petrol in an 85% proportion (e85) and becomes a renewable substitute for petrol. Abengoa Bioenergia Brasil obtains bioethanol from sugar cane juice fermentation collected after sugar cane grinding and subsequent distillation. Bagasse, the fuel of the power generation system, is separated during grinding; and vinasse, used as fertilizer in sugar cane plantations, is separated during fermentation. Distilled bioethanol is the fuel used in "flex" engines, which run on both gas and bioethanol, or any blend of both. Second-generation bioetanol Compared to the traditional process to produce ethanol as from cereals, where the starch content is used, the production of ethanol as from agricultural waste requires a complex and intensive process to release the polymeric sugar structures present in the cellulose and hemicellulose, which account for 30% to 50% and from 20% to 35% of the plant material, respectively. The enzymatic hydrolysis process fractions the biomass into its most important components and hydrolyses the carbohydrates into simple sugars for the fermentation of the ethanol. 2012 Corporate Social Responsibility 23 ABENGOA BIOENERGY Our business Its main advantages compared to fossil fuels are the following: Renewable origin. Biodegradable. Higher independency on oil imports; its use contributes to increase energy autonomy and diversification. Cleaner fuel in polluting emissions such as sulphur oxide and particles. Contribution to local economies growth and income distribution, generating jobs in rural areas. Reduction of GHG emissions that overheat the surface of the earth and accelerate climate change. Easy to obtain and store. The bioethanol supplied by Abengoa Bioenergy to its clients in Europe meets the strict sustainability standards required under european directives thanks to implementation in the supply chain of its own voluntary certification system, already approved by the EU Commission, called RBSA, or by complying with the specific requirements of some members states, such as Germany under BioOrdinance certification. e85 e85 is a biofuel produced by combining 85 % bioethanol with 15 % gasoline. The main advantage of e85 is its bioethanol content: the high percentage gives the fuel a higher-octane grade and better engine performance. This partially compensates for the lower LHV, reducing consumption differences. Bioethanol and gasoline can also be mixed to any proportion, and mixed fuels are legal in Spain, which makes fuel logistics extremely simple compared to other alternative means of energy for the automobile industry. Furthermore, the high bioethanol content (renewable) appreciably reduces fossil fuel consumption and significantly contributes to reducing greenhouse gas emissions and reducing energy dependence. The fact that e85 is different from gasoline means that a car designed to run on gasoline cannot use e85; vehicles designed specifically for this biofuel must therefore be used. These technologies are marketed under the name FFV. Most manufacturers in Brazil (Fiat, Ford, Volkswagen Peugeot, Renault, etc.) provide FFV technologies (Flexible Fuel Vehicles, FFVs capable of running on any mixture of gasoline and ethanol up to 85 %) in their different models, as do most US manufacturers Biodiesel Biodiesel is a renewable biofuel formed by long-chain fatty acid methyl or ethyl esters. If the esters that compose the biodiesel are methylic, they are called FAME (Fatty Acid Methyl Ester). It is obtained through the chemical reaction of methanol (or bioethanol) with vegetable oils (rape, sunflower, soy, palm). It does not contain sulfur and, compared to oilderived diesel, greenhouse gas emissions are reduced (including CO2), as well as carbon monoxide (CO) emissions and emissions of particles and other polluting products. Advantages: It is a cleaner source of fuel, renewable and for household use. Reduces oil dependency It can be used in all diesel engine vehicles, without requiring conversions, adjustments or special regulations in the vehicle engine. 2012 Corporate Social Responsibility 24 ABENGOA BIOENERGY Our business Easy to produce and store. It emits 40-80 % less greenhouse gases than fossil fuels. It increases engine lubrication and the flash point, thus reducing the danger of explosions due to gas emissions. It is biodegradable and non-toxic Improves air quality in urban areas. Does not pollute water. Reduces waste production. Biodiesel production creates new opportunities for sustainable rural development within the framework of a more marketoriented farming policy, since it promotes the development of energy crops and the creation of agribusiness, helping maintain employment and income levels in rural areas. DGS DGS or Distillers Grains with Solubles is the co-product resulting from obtaining bioethanol by converting the starch from cereals through fermentation into bioethanol and its subsequent extraction by distillation. This co-product is a source of vegetable protein, energy, fiber and vitamins, and is used as animal feed. Aware of the implications this entails, DGS undergoes strict quality controls that guarantee both its nutritional properties and those arising from enforcing current food safety legislation. DNV has certified the European companies under scheme GMP+B2 scheme, a certification recognized as a good manufacturing practice. This scheme guarantees the production of animal feed (DGS) as a raw material under good health and safety quality. Sugar Abengoa Bioenergia Brasil obtains sugar from sugar cane grinding. The liquid is separated from bagasse during grinding. This sugar cane juice undergoes necessary filtration and chemical processes to neutralize its pH. The product in its solid state (crystal sugar) is obtained through distillation and subsequent centrifugation. The crystal sugar production of Abengoa Bioenergia Brasil is allocated to exportation and sale in the domestic market. Electricity The configuration of some process plants includes cogeneration units that make them self-sufficient in terms of electricity and allows them to export any surplus. This is the case of the plants located in Spain. Electricity is generated through a natural gas turbine. In the Spanish case, this electricity marginally replaces the production of electricity in coal and fuel plants. Since cogeneration systems also have a thermal use of the turbine gases either for steam production and / or drying of the DGS, the energetic performance altogether is much higher than if the two processes were implemented separately. A similar situation occurs at the new facilities in Holland. 2012 Corporate Social Responsibility 25 ABENGOA BIOENERGY Our business Likewise, in Abengoa Bioenergia Brasil, electricity and steam are generated as from the combustion of bagasse obtained after the sugar cane grinding process. Carbon dioxide, CO2 CO2 is a product of cereal fermentation. Currently, CO2 is supplied to gas companies for its use in industry or greenhouses. In the USA, CO2 is captured from the process in the facilities of York, Nebraska, and Colwich, Kansas, and it is sold to drinks and frozen food companies. Besides, in USA, Abengoa Bioenery forms part of the PCOR (Plains CO2 Reduction), an organization led by the University of North Dakota, devoted to searching and developing solutions for CO2 sequestration on an industrial scale. The plant in Holland supplies the CO2 production to greenhouses. In Europe, Dutch facility supplies the CO2 production to greenhouse. In addition, CO2 capture projects are being developed in French facility and two Spanish facilities (Galicia and Castilla y León). New tecnologies Abengoa Bioenergía has the aim to develop innovative technological solutions through ongoing investment in R&D, seeking more efficient production processes and animal feed co-products, unique and with high value to be recognized as world leaders in the production of biofuels and the development of innovative technological solutions that contribute to sustainability of the transport sector and in manufacturing biochemical products. Therefore, our R&D activities are included in technological lines that cover the fundamental aspects to achieve the development of new ways of producing biofuels and bioproducts, for which purpose we have teams of engineers and technologists highly specialized in process development and biochemistry with the capacity to improve enzyme producing organisms and optimizing fermentation processes. Abengoa Bioenergy New Technologies, the company through which Abengoa Bioenergía manages its R&D activities, has a series of technologies on which it focuses all its effort and which give rise to products in different areas that can be used by the company or licensed to third parties: enzymatic hydrolysis, catalysis, enzymes, bioproductos, algae. Product responsibility Every one of Abengoa Bioenergy's companies has in place a process-focused management system supporting and implementing the organization's policies and strategies, with a view to continuous improvement in accordance with the requirements laid down in international regulations. Within this context, the management system, along with its control and monitoring mechanisms, guarantees the evaluation during every phase of the product and service life cycle of any impact on customers’ health and safety. In its constant commitment to quality in all the operations it performs, and in particular the products it markets, the information channels available to Abengoa Bioenergy recorded no incidents during 2012 as a result of any breach of legal regulations or voluntary codes in terms of the impact of products and services on health and safety throughout their life cycle, nor any regarding the information and labeling of the products and services distributed in accordance with the type of outcomes of such incidents. In accordance with international regulations and internal specifications, all legal requirements of every kind must be identified where they apply to each of the companies and their products and services. Abengoa Bioenergy has furthermore established 2012 Corporate Social Responsibility 26 ABENGOA BIOENERGY Our business a periodic evaluation of compliance with all the requirements in place, and in the event of any breach requires registration of this in the corporate problem-resolution (IRP) and improvement action (AM) applications for supervision and monitoring Among the products released by Abengoa Bioenergy we distinguish three main products: Bioethanol. Whatever the means of transport, ethanol comes with the corresponding materials safety sheet along with a bill of lading. As the product is shipped in bulk, no labeling is required, although the container must be identified in accordance with the terms of the ADR regulations for the transportation of hazardous goods by road, or under RID in the case of rail. DGS. This is shipped in bulk and therefore need not be labeled. However, given its condition as animal feed the product must be released with documentation including, among other details, the issuer and the party responsible for marketing sale, the technical name of the product, the GMO declaration (where applicable) the protein content and batch traceability. Sugar. This is shipped in bulk, with documentation which includes, among other details, those of the issuer and party responsible for commercial sale, the technical product name and batch traceability. Committed to Innovation Abengoa Bioenergy is a technological company that applies innovative solutions for sustainable development in the energy sector, from renewable resources. The recognition of our leadership within the Bioenergy industry is based on the development of innovative technological processes for producing biofuels, especially bioethanol and its coproducts, through an important investment effort in Research, Development and Innovation (R&D&i) technologies and in a permanent value creation strategy, by the generation of new options, defining current and future businesses according to a structured procedure. Abengoa Bioenergy’s commitment includes, in addition to Research and Development and innovation in the Bioenergy industry, innovation in management systems which enable improving the organization and efficiency of resources available through innovation in management. Abengoa Bioenergy aims to establish a leadership position in the bioenergy industry and become a worldwide producer of renewable energy. It is Abengoa Bioenergy ‘Nuevas Tecnologías’ (ABTN) mission and ultimate goal to achieve this vision with the development of manufacturing technologies and the implementation of the best and most efficient operating practices. ABNT takes up the leading role of R&D in Abengoa Bioenergy, which considers the master lines to develop its Strategic Plan and focuses the launching of projects and R&D initiatives within the company’s objectives. Plan objectives include: Improving the current dry-mill ethanol process yields. Identifying and managing new sources of raw material. Developing and marketing competitive technologies for biomass conversion. Developing technology for the production of enzymes used in the lignocellulosic biomass hydrolysis. Developing microalgae CO2 capture technologies with a dual purpose. 2012 Corporate Social Responsibility 27 ABENGOA BIOENERGY Our business Improving the life cycle of biofuel production facilities with the capture of CO2 produced in them. Using the biomass generated as raw material in biofuel production. Developing advanced biorefinery concepts. Increasing the value of by-products. Demonstration programs for ethanol end uses. The engine and vehicle of the previous objectives is sustainability. Therefore, it constantly develops innovative solutions that allow it to meet the increasing challenges arising in this field. Thus, sustainability certification is a crucial activity to turn the effort made into its processes and products, besides allowing it to anticipate future regulatory demands and respond to requests from its customers and the market that involve guarantees of a good environmental and social behavior of the products they use. For this purpose, in current and future production processes, it is developing advanced technological solutions in order to guarantee the traceability of raw materials, including the calculation of the energy intensity and greenhouse gas emissions associated to the growth, harvesting, transportation and use besides modeling systems for the management of its products’ sustainable origins. Its progress in sustainability is completed with the life cycle analysis of its products and coproducts according to the most advanced methodologies and software, and with the support to all the Bioenergy companies through the conceptual development and management of the tools necessary, not only to establish improvement objectives but also tackle the high current Sustainability requirements with guarantees. In assessing new projects, Abengoa Bioenergy bears in mind different aspects of financial character when determining the suitability of the option chosen from among the alternatives offered, analyzing, among other things: Technical feasibility, selecting an alternative that guarantees: - An appropriate supply of raw materials, - Access to energy infrastructures (electricity, natural gas, water) both for supply and evacuation - The existence of a logistics network to dispatch products In biofuel production, the proximity of facilities using CO2 in their processes is an additional factor. Environmental suitability, performing the studies and analyses necessary or each one of the existing alternatives that guarantee that project development will make it possible to maintain a suitable environmental quality with respect to the pre-operational situation in the recipient environment. Integration and social development, with those projects with a positive acceptance in the local community taking precedence, considering the priority of promoting local employment and technological development of the areas where they are located. All these aspects are fully integrated within the impact guarantee and assessment systems associated to the projects’ operation, once performed. Awards and recognition The Spanish Independent Commission for Safety and Hygiene at Work in the Chemical Industry and Similar (acronym in Spanish, COASHIQ) recognizes the work of the sector’s companies that have achieved the best results for reduction in workplace accidents and has awarded a prize to Bioetanol Galicia for offering improvements in terms of workplace safety in the chemical industry and similar. 2012 Corporate Social Responsibility 28 ABENGOA BIOENERGY Our business With the excellent results achieved by Bioetanol Galicia regarding workplace accidents during the year 2012, this Abengoa Bioenergy company has been one of the chemical companies awarded a prize during the ceremony held on June 20 in Tarragona. On March 28, 2012, Abengoa Bioenergy has been distinguished for the second time with the Sustainable Biofuels Award, in the category of Sustainable Bioethanol because of the development of the RED Bioenergy Sustainability Assurance (RBSA) Standard. The Sustainable Biofuels Awards have been created to acknowledge the tremendous innovative work that is developed in terms of sustainability and renewable biofuels. With this new award, Abengoa Bioenergy strengthens its commitment to sustainable development as a fundamental pillar of the company, trying to offer competitive and sustainable alternatives to the market. For the eleventh consecutive year, on May 2012, the World Conference on Biofuels ‚World Biofuels 2012‛ was held at the Hospital de los Venerables, headquarters of the Focus-Abengoa Foundation in Seville. Abengoa Bioenergy has been recognized as ‚Top 50‛ company in the St. Louis area for the fourth consecutive year. The ‚Greater St. Louis Top 50‛ is an annual program of awards granted by the St. Louis Regional Chamber and Growth Association (RCGA) to give prizes to the best companies of the St. Louis region. The award to Abengoa Bioenergy was mainly based on its leading position in the ethanol industry, committed to an aggressive growth throughout the world, as well as on its leadership in the development of new and improved technologies regarding the production of ethanol, including cutting-edge technologies in second-generation biofuels. On June 13, 2012, Abengoa Bioenergy of Illinois (ABIL) received the ‚Norfolk Southern Railroad Chemical Safety Award ‚. The award is granted every year to recognize those companies and facilities that ship, without incidents, throughout the year more than 1,0000 rail cars of merchandise containing federally regulated hazardous material through the Norfolk Southern rail network. The Norfolk Southern Railway is a Class I rail network in United States, owned by the Norfolk Southern Corporation. The company operates around 32,000 route km in 22 eastern states. To achieve these numbers, Abengoa Bioenergy of Illinois has safely loaded ethanol 24 hours a day and 7 days a week. ABIL loaded over 2,000 rail cars and 3,600 trucks and safely transported more than 322 ML of ethanol in 2011. After being audited and recognized for its actions in the economic, social and environmental development and for the interest of all its employees in the improvement of work conditions upon sugarcane cultivation, Abengoa Bioenergy Brazil received the National Commitment Official Seal of the Brazilian government, given by the president Dilma Rousseff, ministers and trade union leaders belonging to worker commissions. 2012 Corporate Social Responsibility 29 ABENGOA BIOENERGY Polícies and management model Policies and management model 2012 Corporate Social Responsibility 30 ABENGOA BIOENERGY Polícies and management model Corporate Social Responsibility Policy Our main aim at Abengoa Bioenergy is to be recognized as global leaders in biofuel production and the development of innovative technological solutions contributing to sustainability of the transport sector and in the manufacture of biochemical products. This aim can only be achieved if the development of all our activities is closely tied to the basic pillars of sustainability: Respect for the environment Social development Financial returns In order to fulfill the aforementioned principles at Abengoa Bioenergy we have defined the following sustainability actions in our mission, vision and values, encompassing and guiding all our initiatives: Value creation. Raw material certification. Reduction of greenhouse gases. Personal and professional development of employees. Efficient use of natural resources. Mission Contribute to the sustainable development of the fuel market for transportation and of chemical bioproducts by using renewable raw materials and green technologies that help to reduce carbon emissions and the environmental impact. Develop innovative technological solutions through continuous investment in R&D that provide more efficient production processes, raw material diversification and new product manufacture. Create shareholder value, focusing its activities on creating profitable and sustainable technological solutions. Contribute to the personal and professional development of its employees through ongoing training and by establishing and monitoring customized development targets and plans. Vision Become one of the leading worldwide companies in the production and marketing of biofuels and chemical bioproducts made from renewable raw materials. Be acknowledged as a leading global company in research and development and be well-known thanks to its technological innovation in converting biomass into fermentable sugars and then into bioethanol, biodiesel, kerosene for aviation as well as chemical bioproducts and in adapting first generation assets to diversify the product portfolio. Provide an optimal work environment in order to attract the best possible employees and maintain their excellence. Attract the attention of and be respected by the financial community as a result of sustained growth and technological innovation. 2012 Corporate Social Responsibility 31 ABENGOA BIOENERGY Polícies and management model Values Honesty in our relationship with clients, shareholders, partners and colleagues. Respect for individuals under all circumstances. Prioritization of teamwork using corporate tools to encourage information exchange. Promotion of a flexible, mental attitude in order to adapt to continuous change. Protection, defense and improvement of the environment. Management model Growth at Abengoa Bioenergy is based on five strategic planks: Creation of new businesses helping to combat climate change and contribute towards sustainable development. Maintenance of a highly competitive human team. Permanent strategy of value creation through the generation of new options, defining current and future businesses in accordance with a structured procedure. Geographical diversification in markets with the greatest potential. Efforts to invest in research, development and innovation programs. 2012 Corporate Social Responsibility 32 ABENGOA BIOENERGY Stakeholders Stakeholders 2012 Corporate Social Responsibility 33 ABENGOA BIOENERGY Stakeholders Dialogue channels Abengoa Bioenergy’s relationship with its stakeholders (employees, customers, suppliers, society, shareholders and the communities where the company conducts its activities) is brought to bear within a context of transparency and trust based on ongoing and honest two-way communication. Communication is key to engaging stakeholders as participants in company performance and its commitment to sustainable development. The primary aim of this communication is to strengthen the company’s relationships with all of its stakeholders, and to uphold the commitments undertaken with each one of them. Achieving unity of effort in pursuing common interests is an essential part of addressing the present and future challenges facing the company. Talking to stakeholders: Abengoa is fully aware of the specific characteristics of each of its stakeholders and of their needs, and therefore establishes different channels of dialog in order to communicate with them. 2012 Corporate Social Responsibility 34 ABENGOA BIOENERGY Stakeholders Dialogue Channels Stakeholders Company-stakeholders dialogue channels Stakeholder-company dialogue channels Shareholders Abengoa and Abengoa Bioenergy's website. World Biofuels conferences. Press campaign advertising biofuel defence. Public presentation. Quarterly report publication Investor relations department. Shareholders assistance mailbox Satisfaction surveys. Public presentations. Investors and analysts meeting Quarterly presentation of results via audio and visual systems accessible from Abengoa's website. Q&A session following results presentations. Tours of the company´s facilities for investors External whistleblower channel. Annual report. Opinion survey Interviews CSR mailbox ([email protected]) Quarterly presentation of results via audio and visual systems accessible from Abengoa's website. Q&A session following results presentations. Annual report. Press releases. Employees Employee self-service Corporate intranet: conecct@ Employee self-service Welcome manual People Center. IT tool for employees. Two-monthly gazette. Spokespeople from Human Resources. Health and safety committee. Workers commitee. Equal treatment and opportunities committee Departamental seminars and talks Mailing Online training throught the Abengoa Campus. Annual report. 2012 Corporate Social Responsibility 35 Abengoa an Abengoa Bioenergy's website. Stakeholder mailbox. Corporate intranet: conecct@ Suggestion box Employee self-service Surveys on satisfactions and working an enviromenty IT troubleshooting application Improvement actions (IA) IT tool. Online training. Assesment surveys. 360º executive feedback program Social welfare for employees. Spokespeople from Human Resources. Internal whistleblower channel Health and safety committee. Workers commitee. Equal treatment and opportunities commitee Openday Annual report. Opinion survey Assesment interviews CSR mailbox ([email protected]) ABENGOA BIOENERGY Stakeholders Dialogue Channels Stakeholders Suppliers Local communities Company-stakeholders dialogue channels Stakeholder-company dialogue channels Abengoa and Abengoa Bioenergy's website. Satisfaction survey Structured process for measuring supplier effetiveness. Tool from the security management system. Periodic visits to suppliers. Annual Report LinkedIn and Twitter Structured process for measuring supplier effetiveness. IT troubleshooting application Improvement action (IA) IT tool. Tool from the security management system. Stakeholders mailbox External whistleblower channel Annual Report. Opinion survey Interviews CSR mailbox ([email protected]) Abengoa and Abengoa Bioenergy's website. Annual Report Communication department CSR department. Production plant visits: NGOs, universities and organizations Openday Trade shows, forums and conferences. Focus-Abengoa's website Press releases CSR department. Production plant visits: NGOs, universities and organizations Openday CSR mailbox ([email protected]) Assessment of beneficiaries of social programs and initiatives External whistleblower channel Annual Report. Opinion survey Interviews Stakeholders mailbox Trade shows, forums and conferences. Corporate blog Society Abengoa and Abengoa Bioenergy's website. Annual Report Communication department CSR department. Focus-Abengoa's website Production plant visits: NGOs, universities and organizations Openday Trade shows, forums and conferences. Corporate blog LinkedIn and Twitter 2012 Corporate Social Responsibility Corporate blog 36 Press releases Communication department CSR department. Production plant visits: NGOs, universities and organizations Openday Trade shows, forums and conferences. Stakeholders mailbox Corporate blog CSR mailbox ([email protected]) External whistleblower channel Annual Report. Opinion survey Interviews LinkedIn and Twitter ABENGOA BIOENERGY Stakeholders Our shareholders The share capital as of December 31, 2012 and 2011 is 149,522 thousand euros, composed of 2,990,436 shares with a nominal value of 50 euros each , fully subscribed and paid. Abengoa Bioenergía, S.A. was incorporated on May 20, 2002, its capital stock represented by 1204 registered shares with a face value of 50.00 Euros each, with 1203 shares being subscribed by Abengoa, S.A. and 1 by Sociedad Inversora en Energía y Medio Ambiente, S.A. (a company fully owned by the former). On September 19, 2002 the General Shareholders Meeting unanimously agreed to convert the company from a corporation into a limited liability company. Abengoa, S.A. subsequently decided to group together all investments connected with biofuels under the name of Abengoa Bioenergía, to which end: On December 16, 2002 the capital stock was increased by 119,756,050.00 Euros by means of a non-monetary contribution comprising the shares which Abengoa, S.A. held in various companies. Sociedad Inversora en Energía y Medio Ambiente, S.A. did not subscribe in this rights issue, which was fully taken up by Abengoa, S.A. On December 31, 2002 the capital stock was again increased by 29,705,550.00 Euros through a non-monetary contribution comprising shares which Sociedad Inversora en Energía y Medio Ambiente, S.A. held in various companies. Abengoa, S.A. did not subscribe in this rights issue, which was thus fully taken up by Sociedad Inversora en Energía y Medio Ambiente, S.A. On January 1, 2004 the General Shareholders Meeting unanimously ruled to convert the company from a Limited Liability Company into a Corporation, this resolution being recorded with the Companies Register of Seville on October 7, 2004, from which date onwards it acquired the name of Abengoa Bioenergía, S.A. Shareholding structure The shareholding structure of Abengoa Bioenergía, S.A. was at December 31, 2012 as follows: Communication with shareholders takes place regularly within the context of Abengoa, S.A.'s actions and through the channels of information established for this purpose. 2012 Corporate Social Responsibility 37 ABENGOA BIOENERGY Stakeholders The corporate website (http://www.abengoabioenergy.com), published in Spanish, English and Portuguese, serves as an excellent tool for communication with all stakeholders, including shareholders. It is permanently updated in order to include all relevant information, and to keep shareholders and other stakeholders fully informed at all times. Our employees In 31st December 2012 Abengoa Bioenergy a workforce of 4.354, distributed across the three geographical areas where the company operates: the United States, Europe and Brazil. Average staff turnover was 0.53%. Spanish law allows workers to return to their job following a period of parental leave. In 2012, 174 parental leaves and 32 maternity leaves were requested. Of which, 100% of the men and 97% of the women who requested the maternity leave have returned to their duty. Staff 2012 Region Europe United States % 14% 8% Total 624 346 Brazil Position Employees Male Workers Male Employees Female Workers Female Rotation Europe United States Brazil 78% 3,384 17% 69% 8% 6% 742 3,017 328 267 0.09 % 0.09 % 0% 4 4 0 Staff by age and gender 20-30 31-40 41-50 51-60 >60 Europe 172 285 120 39 8 United States 77 100 79 66 24 Brazil 1147 1049 722 395 71 Staff by region and gender Male Executives Managers Europe United States Brazil 30 11 28 53 40 173 Female Engineers Engineers Assistants Assistants and other and other and Technicians Intern Executives Managers and Technicians Intern college college professionals professionals graduates graduates: 93 36 207 12 1 26 62 68 23 13 49 22 144 6 1 8 12 36 15 2 44 145 2666 0 0 20 21 58 229 0 2012 Corporate Social Responsibility 38 ABENGOA BIOENERGY Stakeholders Principles of the Global Impact Abengoa Bioenergy adheres the criteria and systems of Abengoa related to Principle of the Global Impact Since 2005, Abengoa and Abengoa Bioenergy , as a subsidiary of Abengoa, have been publishing an annual progress report on the Global Compact website in which the company reports to its stakeholders on its ongoing implementation of the 10 principles, underscoring the year-to-year goals and objectives set. Principle 1. Businesses should support and respect the protection of internationally proclaimed fundamental human rights within their sphere of influence. Abengoa has undertaken in its labor practices the Universal Declaration on Human Rights of the United Nations and aligns professional conduct with all of its protocols, in addition to international agreements approved by the UN and, in relation to labor rights, by the International Labour Organisation (ILO). Principle 2. Businesses should make sure that they are not complicit in human rights abuses. Abengoa’s Common Management Systems, which contain rules that are binding on all employees and apply throughout the organization, without exception, set forth the company’s guidelines and policies on the protection of human rights. To guarantee the integrity of those who may have an influence on company activities, Abengoa requires all providers to sign up to the Social Responsibility Code (SRC) for suppliers and subcontractors, which includes eleven clauses based on the principles of the United Nations Global Compact and inspired by the international SA 8000 Standard. In 2011, Abengoa developed a system of responsible purchasing that will be implemented in four stages and whose fundamental objectives are to incorporate sustainability criteria into supplier assessments and to standardize and endorse these processes, which currently vary due to the diverse characteristics of the suppliers contracted and the variety of company activities. Abengoa analyzed approximately 17,500 suppliers in terms of human rights-related risk over the course of the year. Principle 3. Businesses should uphold freedom of association and the effective recognition of the right to collective bargaining. Within an open atmosphere of ongoing dialog, Abengoa supports the free association of its workers and considers this an inalienable right. Principle 4. Businesses should support the elimination of all forms of forced and compulsory labor. Abengoa’s Common Management Systems establish the company’s guidelines and policies on recruitment, as well as employee procedures and working conditions, all of which are intended to ensure efficient work and a suitable personal and professional life balance. In the SRC is included a specific clause to prohibit coercive hiring practices. Principle 5. Businesses should support the abolition of child labor. Abengoa condemns all forms of child labor, in accordance with the terms specified under Convention 138 of the International Labor Organization (ILO) concerning minimum age. In the SRC, an agreement was reached to include the prohibition of child labor as a contracting prerequisite and a specific requirement to comply with the norms o the International Labor Organization. Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation. Abengoa has its own Equality Framework Plan, which applies to all company personnel, and which seeks to ensure equality in the treatment and opportunities between men and women, while preventing any situation that may imply or constitute direct or indirect labor discrimination for reasons of gender. In 2009, a work harassment whistleblower protocol was put in place at Abengoa to deal with any potentially discriminatory situation occurring within the company. This protocol addresses whistleblower procedures and defines situations that could constitute harassment. It is applied in accordance with the principles of confidentiality, credibility and timeliness in order to ensure and protect the privacy, dignity and rights of company employees. 2012 Corporate Social Responsibility 39 ABENGOA BIOENERGY Stakeholders Principle 7. Businesses should support a precautionary approach to environmental challenges. Abengoa has a sustainability policy that is clearly defined under internal rules and regulations, in addition to a risk management system that includes environmental aspects, a Greenhouse Gas (GHG) Emissions Inventory, and specific emission reduction targets for all business groups, and specific Environmental Indicator system. All of this helps to detect environmental risks, present them, evaluate business sustainability, and set improvement targets. Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility. Abengoa bases its business and management model on innovative technologies for sustainable development, thus ensuring the sustainability of not only products and services, but also processes. Since the introduction of the Greenhouse Gas Inventory in 2008, Abengoa has required all of its suppliers to report the emissions attributed to the products and services acquired by the company, and therefore suppliers are under the obligation to provide information on the emissions associated with every order placed by the company. This enables the company to convey its policy and culture of helping to combat climate change to its supply chain. Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies. Abengoa is an international company that applies innovative technological solutions for sustainable development in the energy and environment sectors, generating energy from the sun, producing biofuels, desalinating sea water, and recycling industrial waste, while bringing long-term value to its shareholders through a management model that champions enterprise, social responsibility, transparency, and rigor. Abengoa upholds an ongoing commitment, through its innovation policy and strategy, to promoting sustainable use of resources and raw materials that spans their entire life cycle. Abengoa focuses efforts on innovation involving renewable energies. The drive towards and implementation of these technologies are based on sources characterized by low environmental impact and higher energy efficiency. Principle 10. Businesses should work against corruption in all its forms, including extortion and bribery. Abengoa fights corruption through its Code of Professional Conduct, which governs the conduct and working relations of Abengoa employees, directors and officers with all stakeholders. This code demands the highest standards of honor and ethical conduct, includes procedures for dealing with personal and professional conflicts of interest, and requires suitable disclosure in the reports which Abengoa must present on a regular basis to government bodies; requires compliance with applicable laws, standards and regulations; addresses improper use or poor application of assets and business opportunities; demands maximum confidentiality and fair treatment both inside and outside of Abengoa; and demands immediate internal communication of failure to comply with the code, as well as appropriate communication of any illegal conduct. 2012 Corporate Social Responsibility 40 ABENGOA BIOENERGY Stakeholders Occupational health and safety Abengoa’s occupational risk prevention policy is compliant with the various occupational health and safety regulations prevailing in the countries where the company operates, and is designed to integrate occupational risk prevention with the company’s mainstream strategy by means of training and awareness-raising. In accordance with the company’s prevention policy and its common management systems, all Abengoa Group entities have set up occupational risk and occupational health prevention committees, comprising senior management, department heads and dedicated prevention officers. The committees are in charge of tracking and monitoring implementation of the system. In 2012, an occupational risk prevention officer was appointed at business group level. His brief is to integrate, bolster and improve Abengoa’s prevention capability. In addition a new management committee was created for the prevention of labor risks, a fundamental tool to guarantee an ideal communication and coordination in this matter worldwide. Abengoa Bioenergy labor policy and its commitment to employees In accordance with the corporate citizenship commitments acquired through adherence to the United Nations Global Compact in 2002, and the undertakings made under the organization’s own Code of Conduct, Abengoa abides by a laborrelated citizenship policy founded on a management system inspired by the SA8000 international standard, which assures ongoing improvement in the company’s corporate responsibility performance. The commitments under that standard include: Integrating labor-related corporate citizenship with the company’s corporate strategy. Assuring compliance with applicable law and other commitments in this area. Promoting the principles of the Global Compact in the company’s sphere of action: partners, suppliers and contractors. Promoting and fostering the personal and professional development of the people who make up the Abengoa organization through the creation of suitable working conditions and the promotion of continuing training. Recruiting, hiring, training and promoting the most qualified individuals, regardless of race, religion, color, age, gender, marital status, sexual orientation, nationality, or physical or mental disability. Assuring appropriate preventive culture in accordance with occupational risk prevention policy. Creating the necessary conditions to support employees’ work-life balance. Assessing and reviewing the company’s citizenship performance, reporting transparently on citizenship-related matters, and setting in motion programs for ongoing improvement. Integrating the management of social and labor responsibility in the corporate strategy of the company. Assuring compliance with applicable law and other commitments in this area. Promoting the principles of the Global Compact in the company’s sphere of action: partners, suppliers and contractors. Recruiting, hiring, training and promoting the most qualified individuals, regardless of race, religion, color, age, gender, marital status, sexual orientation, nationality, or physical or mental disability. Assuring appropriate preventive culture in accordance with occupational risk prevention policy. Creating the necessary conditions to support employees’ work-life balance. Assessing and reviewing the company’s citizenship performance, reporting transparently on citizenship-related matters, and setting in motion programs for ongoing improvement. Abengoa Bioenergy is certified by SAI (Social Accountability International) in the international standard SA8000 in all the countries in which it operates: United States, France, Spain, Netherlands and Brazil. 2012 Corporate Social Responsibility 41 ABENGOA BIOENERGY Stakeholders Professional development The environment in which any company currently intervenes presents characteristics and peculiarities defined by a constant evolution and change that demands intensifying the competence for its development. In order to mark the difference, Abengoa Bioenergy considers it a priority to turn said competence into one of the determining parameters to ensure, in all cases, innovation, flexibility and reactivity. The competence management model, as HR (human resources) management model of Abengoa Bioenergy, responds to the company´s need to generate value and clearly competitive advantages through people. This competitive advantage is difficult to imitate, therefore, the employees are one of the most important assets to maintain a market leadership trend thus making the attraction, creation and retention of talent a top priority. In turn, its whole selection process, either internal or external, is based on said model. Therefore, Abengoa Bioenergy considers training to be a systematic and ongoing process by which it aims at developing, enriching, enhancing or modifying the conceptual, attitude and procedural competencies of the employees through training actions. From the point of view of competencies management, training is designed to improve the technical and generic competencies of people at work through enriching knowledge, developing skills and strengths and improving capabilities. The excellent performance of an organization requires ongoing training and updating. Thus, Abengoa Bioenergy is making a great effort to devote resources to train its personnel in the different areas where this is necessary. Finally, Abengoa Bioenergy gets involved in these management processes always from a position of respect for the protection of human rights and labor rights, respect for the freedom of association and the effective recognition of the right to collective bargaining, the elimination of all kinds of forced or compulsory work, the effective abolition of child labor and, finally, the elimination of all discrimination regarding employment and occupation. With this, it adapts its labor practices and the professional action of its employees to the Universal Declaration of Human Rights of the United Nations and its protocols, as well as the international agreements approved on social rights. Training Training is vital to the development of Abengoa’s people. Every year, a training plan is designed to meet staff training needs, combining face-to-face and online methodologies so as best to satisfy employee requirements. The Abengoa training plan embraces all topics required for the company to have in place a team of highly qualified professionals who are committed to the Abengoa culture. Highlights include the following programs: Corporate training: aimed at fostering the Abengoa culture: its values, principles and management model. The corporate topics address key issues such as the company’s strategy, risk model, businesses and leadership vision. General training: aimed at improving each employee’s professional skills in any of the disciplines relating to his or her job. Occupational risk prevention training: to reinforce awareness at all levels of the importance of supporting and abiding by occupational safety requirements and using protective equipment. Environmental management training: to help employees understand the organization’s commitment to sustainability. Environmental performance training: relating to the systems supporting the company’s environmental performance: Integrated Sustainability Management System (ISMS) and ISO 14064. Online training on the greenhouse gas inventory. Language training: as a key element in an environment of ongoing international growth and globalization. Internships: implemented via the interns program. 2012 Corporate Social Responsibility 42 ABENGOA BIOENERGY Stakeholders Trainning Languages Corporate Prevention General Professional Practice Attendees 748 7,939 21,255 13,67 107 Total 43,719 Hours 17,665 26,717 272,751 89,563 60, 253 466,949 The training of professional practice includes the employees that are in practice. In 2012 Abengoa Bioenergy taught an average of 107 training hours per person. Abengoa Bioenergy has an executive development program and a specific system for performance assessment based on the 360° methodology. In 2012, more than 125 professionals of the company were taking part in the program. Besides, the company has a Competence Management Model that allows the integration of individuals in accordance with the strategic objectives of each of them, of their annual performance assessment and of their development. In 2012, more than 33 % of the employees where taking part in a performance management program. This year, the objectives set forth have been achieved and exceeded resulting in a complete and balanced training activity focusing on the strategic objectives of the company and having a clear impact on the corporate commitment with the environment, social responsibility, sustainable development and human rights. The concern for informing and training employees and their families on serious illnesses is constant. The fight against stress in the workplace is one of the cornerstones of our training program. Professional programs In its professional development model, Abengoa Bioenergy has designed a set of professional pathways based, in turn, on training pathways that aim at shaping professionals highly qualified in the key business disciplines, aligned with the corporate culture and the best market practices. The following programs are currently being implemented: project director program and project manager program. Executive development program Regardless of the specific professional programs, Abengoa Bioenergy requires a program for key individuals allowing it to guarantee a highly skilled team capable of undertaking the strategic challenges at any given time. To this purpose, it has an executives plan. The employees receive specific training that allows them to expand their executive competencies and skills. This program responds to a twofold need: identify potential executives and develop the executive talent of the leaders of tomorrow. The executive program believes that, in order to create executives, one must make the role attractive, make such positions available to the most capable and those who achieve the levels of attitude, skill and ability to undertake such tasks with excellence. 2012 Corporate Social Responsibility 43 ABENGOA BIOENERGY Stakeholders Future goals and objectives Manager training program. In 2012, the company will continue forward in its firm commitment to improving manager training programs through a new content focus and quality enhancement, backed by collaboration from the best business schools. Enhance Abengoa University´s alumni community (Alumni). Reinforce and deploy the flexible compensation concept, broadening scope to include new companies and expanding the range of products offered. Promote the scholarship and grant program. Professional practices constitute the ideal vehicle for attracting and developing future employees. Online training. Boost and develop new methodologies and make training more accessible to better serve today’s mobility needs. Occupational risk prevention. Keep making progress within a zero accident rate culture and establish procedures to enable global exchange of expertise, experiences, objectives, and improvement measures. Occupational social responsibility: deeply address our commitment with the social responsibility management system, in accordance with the SA 8000 international model, which ensures an ongoing improvement in the social performance of the company. Abengoa Bioenergy works non-stop in safety and health matters in order to guarantee the best conditions in the performance of their activities. Companies has been certified in Standard OHSAS 18001, in this sense, it is currently developing improvements within the Management Systems to maximize the guarantees of risk reduction for its employees. For a better commitment and awareness of the entire staff, each company forming part of the group assigns safety and health training to each one of its employees in order to adapt the behavior and strengthen the respect and knowledge of the safety standards and their application. Occupational accidents During 2012, the total percentage of absenteeism in Abengoa Bioenergy (disciplinary proceedings, illness, accident, and justified and unjustified absences) is of 4.68 %. The absenteeism deriving from common illness is of 1.98 %, whereas the total for occupational accidents is of 0.22%. The rates of occupational accidents in Abengoa Bioenergy are remarkably low compared to the figures from similar sectors and taking into account the nature of the company´s activities. Thus, the incident rate is of 3,028 (number of accidents entailing medical leave for every one thousand workers exposed in a year) and the serious incident rate is of 0.27 (number of working days lost for every one thousand working hours). Every year, Abengoa Bioenergy offers all its employees courses on the Common Management Systems (NOC), where an explanation is provided on the standards and rules that govern the company and information regarding updates is given, making special emphasis on the anti-corruption policies and the Code of Conduct. There is a computer application based on these Common Management Systems, which can be queried by all users at any time, providing greater knowledge in the field of the organization's anti-corruption policies and procedures. Likewise, the Professional Code of Conduct of Abengoa is available for querying both in the intranet, to which all employees have access, and in the company's external website. The changes to said code are informed to the entire organization without exception or delays. 2012 Corporate Social Responsibility 44 ABENGOA BIOENERGY Stakeholders Local managers Total Local % Europe 31 21 68% United States Brazil 12 28 11 19 92% 68% Total 71 51 72% Involvement and commitment of all employees to ongoing improvement of the prevention system at each Abengoa company continue to constitute the cornerstones to the management system. In order to verify the safety conditions under which the activities of the work centers and worksites are carried out, visits were conducted to assess occupational health and safety conditions. Based on deficiencies and anomalies observed, the corresponding Troubleshooting Report (TSR) and Improvement Action (IA) systems were generated. In addition, workshops were organized to raise personnel awareness of the consequences that emotional and mental stress brought on by different factors (work, family-related, etc.) can have on their health. Retribution policy Abengoa Bioenergy had a total of 4,354 employees (31-Dec-2012), of which 1,287 had permanent contracts and 3.034 had temporary contracts and 33 had intern contracts. The ratio between the standard initial salary paid by Abengoa Bioenergy and the local minimum salary is substantially higher in those countries where the number of employees with higher status within the organization is greater, taking into account in the different professional categories. There are no differences in the initial salary figures for men and women for posts of equal responsibility, as both are based on salary tables established in accordance with the collective bargaining agreements which apply or the internal salary scales at Abengoa Bioenergy, which make no distinction on the basis of gender. Salaries (€) Country Spain France Netherlan ds United States Brazil Statutory Minimum 8,990 17,100 Average annualy salary by category Administrative Graduate Operator staff 29,134 17,521 13,529 30,058 19,323 18,430 Percentage paid above statutory Administrative Graduate Operator staff 324 195 151 335 215 205 17,364 69,004 14,121 17,364 768 157 193 11,703 34,418 27,230 13,320 383 303 148 3,292 5,275 3,928 3,924 59 44 44 Note: Figures for the United States have been calculated taking into account a sample of states where Abengoa Bioenergy is located. Figures for Spain calculated on the basis of 14 annual salary payments. Figures for the United States and France calculated on the basis of 12 annual salary payments and Brazil calculated on the basis of 13.3 annual salary payments. 2012 Corporate Social Responsibility 45 ABENGOA BIOENERGY Stakeholders Another major contribution generated by Abengoa Bioenergy in those countries where it operates is the professional and talent development of its executives, attracting and retaining the best human resources. Most of the company's executives are drawn from the local community where significant operations take place. There were no reports in 2012 via Abengoa’s information channels of any discrimination related incidents, nor is there any record of incidents involving infringements of the rights of indigenous people. In addition to the direct economic value which Abengoa Bioenergy generates and distributes among its stakeholders, it furthermore generates relatively significant indirect economic value in those societies where the company operates, although these effects are very difficult to quantify, despite their undoubted importance Abengoa Bioenergy has undergone an increasing growth in the number of employees motivated by opening and commissioning new production plants in the different geographies. It is expected that the business consolidation strategy offers less opportunity for growth in terms of workforce. However, the company is pursuing an active strategy to retain talent that makes it possible to strengthen the basic pillars of the business, which undoubtedly has a positive effect on offering clear stability in labor issues. Proof of this are the itineraries and training plans that are annually integrated and make the set of workers participate, thus providing the necessary knowledge and skills, specific-technical-generic, for a better use of competencies. Code of conduct Abengoa Bioenergy as a subsudiary of Abengoa, has the same Abengoa's code of conduct (see the website www.abengoabioenergy.com) This Code of Conduct: Requires the highest standards for honest and ethical conduct, including proper and ethical procedures for dealing with actual or apparent conflicts of interest between personal and professional relationships; Requires full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed or submitted by Abengoa with governmental agencies or in other public communications made by Abengoa; Requires compliance with applicable laws, rules and regulations; Addresses potential or apparent conflicts of interest and provides guidance for employees, officers and directors to communicate those conflicts to Abengoa; Addresses misuse or misapplication of Abengoa’s property and business opportunities; Requires the highest level of confidentiality and fair dealing within Abengoa and outside Abengoa; and Requires prompt internal reporting of violations of this Code of Conduct and proper reporting of any illegal behavior. Protection of human rights As an international business, Abengoa advocates sustainable growth on the basis of respect for Human Rights within the organization, throughout its value chain, and to the extent of its influence. The company accordingly rigorously opposes forced labor and child labor, and supports all initiatives aimed at eradicating these issues. In the awareness of its responsibility to abide by and ensure compliance with Human Rights, Abengoa submits all its operations to assessment and review in terms of their impact on human rights. 2012 Corporate Social Responsibility 46 ABENGOA BIOENERGY Stakeholders Along these lines, as a product of the importance the company lends to upholding human rights, training is also conducted in this area for subcontracted security personnel. The percentage of personnel trained in this area over the year totaled 30 %. In 2012, no complaints relating to human rights were received via formal channels. Nor were any activities or incidents detected involving risks as to discrimination, freedom of association, child labor or forced labor. To assure protection of human rights for all its employees, all persons within the company are covered by supra-company labor regulations, independently of the nature of their activities or of the countries where such activities are carried out. Furthermore, as applicable under the national legal system of each country, special emphasis is placed on the collective bargaining agreements of the industry, territory, or those of the company itself, signed up to by workers, or their union representatives, depending on each case. Abengoa abides by and supports its workers’ freedom of association, which the company regards as an inalienable right. Via ongoing dialog with workers’ representatives, Abengoa keeps employees informed about all topics that may be of their concern. In addition, the company assures employees that they will be informed prior to any structural or organizational change, whether individually or via employees’ representatives, pursuant to the notice periods prescribed by law and collective bargaining agreements, by way of a fundamental labor right. Abengoa abides by these principles in its labor practices and assures that its employees’ actions are in alignment with the United Nations Universal Declaration of Human Rights and its Protocols. Training is one of Abengoa’s most powerful tools in the prevention of human rights violations. Training is used to make employees aware of Abengoa’s corporate culture and the values of the organization, as set out in its code of conduct. Social benefits For Abengoa it is crucial to achieve a pleasant work environment, undergirded by a healthy relationship with employees. That is why the company provides its people with a range of social benefits in support of a good work-life balance, bolstering the commitment between company and employee, including: Scholarships. Life and accident insurance. Canteens at workplaces with large numbers of employees. Flexible pay for Abengoa Group employees in Spain, including kindergarten vouchers, medical insurance, training and IT equipment. Workplace gym fully fitted for physical exercise and with areas for group activities. Subsidized childcare facilities at the main work centers. Medical department to improve employees’ healthcare coverage, at workplaces employing more than 300 people. Pension plans are designed in compliance with the specific features of each jurisdiction in which Abengoa operates, with reference to the local laws in effect in each region. Social support. The La Antilla complex in Huelva, Spain, offers affordable summer accommodation to all employees. Flexible working hours at the main work centers. Employee social assistance: Abengoa has a social welfare department in place to keep track of personal, familyrelated, social or economic problems. Similarly, the Focus- Abengoa Foundation has a social fund set up to provide economic support to struggling employees. Free shuttle service to the central Campus Palmas Altas headquarters from various stops in the city of Seville. 2012 Corporate Social Responsibility 47 ABENGOA BIOENERGY Stakeholders Abengoa’s employee benefit scheme is managed through the Focus-Abengoa Foundation, which handles the overall management of the schemes and focuses its attention wherever the company is present and wherever most needed. Employee benefits are applied equally among all Abengoa workers, regardless of whether they work full or part-time. Future goals and challenges Improving competences for team management, conflict resolution, and general executive skills. Executive information in the all geographical areas and creation of new programs in support of company activities. The setup of the advanced safety management program. Implementatión of the flexible remuneration plan in all countries where the company is present. Preparation PHDA (Abengoa's executive skills program ) in Europe in English The setup of the DTA program– Abengoa´s technical director. Our customers The management systems established, in accordance with international standards and internal requirements as described in the specifications defining how to assess the maturity of these systems, lay down the need for the introduction of structures to measure customer satisfaction, capable of analyzing customer needs and expectations. In order to assess customer satisfaction, satisfaction surveys are regularly conducted, these being handled by the plant quality departments. These surveys are not annual, given the nature of the actual business, but rather are performed at set intervals depending on the company's strategy and objectives. In late 2012 they began to perform customer satisfaction surveys presented their results in the first quarter of 2013. These surveys are conducted to further advance our quality and service. The surveys were conducted over 30 clients portfolio of Abengoa Bioenergy in Europe. Because of its importance we highlight the following customers who made our satisfaction survey: BP, Cepsa, Ecofuel, Lyondell, Repsol, Total and Acciona, Cargill, Galp, Meroil, Petronor and Esergui, Nanta, Cefusa and Feed Alliance. This analysis concludes by establishing specific action plans and objectives in order to meet expectations and to improve customer satisfaction. The company's senior management also takes this into consideration when establishing and defining the strategy at each company. Comunication A service vocation is one of the aspects which Abengoa Bioenergy considers to be of vital importance. It therefore establishes direct channels of communication between the technical and commercial departments and customers with the aim of establishing a close relationship, thereby allowing it to receive any relevant comments and suggestions. One of the aspects most highly valued by customers is product quality, as a result of the strict controls applied to raw materials prior to their arrival at the plant, with regard to strict compliance with the applicable quality parameters, in line with the regulations in force, throughout the supervision of processes, stored products and, ultimately, the batches released. 2012 Corporate Social Responsibility 48 ABENGOA BIOENERGY Stakeholders All this goes hand-in-hand with strict compliance with contracts, ensuring that Abengoa Bioenergy is a byword for reliability in all regards. Our suppliers The base of the Purchases strategy is focused on the direct integration of the suppliers in the operations through the application of their experience and technology. The implementation of the best solutions proposed by the suppliers enables us to minimize risks, optimize costs and deadlines. All of the contracts and investment agreements with out suppliers and distributors include clauses that have been analyzed in the area of human rights. Guidelines Six basic guidelines define the relationship with suppliers and reinforce the Procurement strategy: Outsourcing Leadership Globalization Local development Integration Quality Outsourcing The outsourcing of the services identified as supplementary to production guarantees the maximum optimization of operations. Outsourcing allows the company to concentrate on improving the knowledge in key activities, increasing the performance of the business, incorporating the most professional service through the direct involvement of the supplier in day-to-day operations. Services such as labor specialized in the different areas of maintenance and utilities, as well as the supplies and application of critical products, are among the sectors subjected to outsourcing due to the specific experience, technology and training required. Leadership The continuous quest and the contracting of the leading suppliers in their sector guarantees innovative improvement solutions with an important technological component, which allows maintaining competitiveness and quality. The supply of critical products and the maintenance of essential units draw on suppliers of well-known success and proven experience. Globalization All purchases are subject to globalization. The contracting of shared suppliers in the different production centers allows incorporating the most developed and homogeneous service with standardized scopes that offer a corporate procedure and a balanced growth across the various production plants. These synergies facilitate the application of global solutions, which result in a cost optimization both in management and in the development of the service and supplies. 2012 Corporate Social Responsibility 49 ABENGOA BIOENERGY Stakeholders Local development In turn, the fact of focusing on the development and involvement of local suppliers guarantees the coverage of the most elementary and basic needs, with the consequent flexibility in the consumption volumes and response times thus having a positive impact on commercial and industrial growth in the geographical areas of operation, guaranteeing a close and social relationship. Local suppliers Brazil Germany Spain France United Kingdom Netherlands United States Total purchase volume in k€ 264,889 27 1,077,878 177,63 81 728,827 1,193,941 Local suppliers(%) 97% 99% 80% 56% 100% 70% 97% Integration The integration of suppliers' improvement proposals allows the continuous enhancement of productivity and performance. Result-based pricing is a fundamental principle of business commitment. This commitment will also include the integration in the environmental safety policy, the respect for human rights and the business ethics. Quality The quality of our providers is a key factor in ensuring that the services and supplies received by our production plants are in accordance with the expected levels. From purchases, in collaboration with quality and HR, a series of systematic visits/audits to providers take place each year to review aspects of the social corporate responsibility and sustainability, quality, purchases, traceability and product control, as well as logistics of the latter to ensure appropriate management and supply to the customer. Social responsibility and sustainability Since June 2008, Abengoa Bioenergy, as part of the sustainability policy of Abengoa and all its business groups, requires its suppliers, including raw material suppliers, to sign a Code of Social Responsibility (CSR) based on international standard SA8000, made up of 11 clauses. Through adhesion to this CSR, Abengoa Bioenergy promotes among its suppliers the observance and compliance with the established social and environmental regulations and compliance with all aspects of social responsibility set forth in the Global Compact, covering the company's entire productive processes, and thereby imposing an obligation on suppliers to sign up to said code in writing. Abengoa has implemented an inventory of GHG (greenhouse gas) emissions, therefore we request our clients to submit the emissions derived from the products / services acquired / contracted. Day by day we continue focusing on the continuous improvement in the sustainability field, thus, we still require from our suppliers their commitment in this sense. 2012 Corporate Social Responsibility 50 ABENGOA BIOENERGY Stakeholders Greenhouse gas inventory Since the introduction of the Greenhouse Gas Inventory, Abengoa requires all of its suppliers to report the emissions associated with the products and services acquired by the company (Greenhouse Gas Emissions Reporting System Implementation Agreement), and therefore suppliers have the obligation to provide information on the emissions linked to every order placed by the company. In order to facilitate adaptation of all providers to these purchasing requirements, there is a transition period in which suppliers undertake in writing to implement an emissions reporting system. This transition period has a maximum duration of six months, after which Abengoa providers that have not provided data on their emissions or who have not expressed their commitment to implementing a reporting system are excluded as Abengoa suppliers. Only in exceptional cases may special authorization be granted, in which case the companies affected must carry out an estimation of the emissions derived from the product or service provided. Code for Abengoa Bioenergy suppliers and subcontractors Abengoa requires its providers to ratify the (SRC) as a way of promoting observance of and compliance with social and environmental regulations. Abengoa professional code of conduct: All applicable laws and standards of the company where operations are performed must be fulfilled. Human rights must be respected, and no employees may suffer harassment, physical or mental punishment or any other form of abuse. Salaries and working hours must at least fulfill the laws, rules and standards applicable in this regard in the country in question, including minimum salaries, overtime and maximum working hours. Forced or imposed labor may not be employed, and employees must be free to leave their job having first given sufficient notice. Child labor may not be employed, and in specific terms ILO standards must be respected. The rights of employees to associate freely must be respected. All employees must be provided with properly safe and hygienic working conditions. Activities must be performed in accordance with respect for the environment and compliance with the relevant legislation in the country in question. All products and services must be supplied in a manner ensuring that they comply with the quality and safety criteria specified in the relevant contractual terms, and must be safe for their intended use. No fraudulent means may be employed in order to secure the supply of goods and services to Abengoa Bioenergy, such as the payment of bribes. Abengoa Bioenergy's suppliers and subcontractors must guarantee that their own suppliers and subcontractors in turn comply with the obligations set out in the above points. Responsible purchasing system In 2012, Abengoa developed a system of responsible purchasing that will be implemented in four stages and which primarily seeks to incorporate sustainability criteria into supplier assessments and to unify and standardize these processes, which currently differ due to the diverse characteristics of the company’s chosen suppliers and the variety of company activities. This 2012 Corporate Social Responsibility 51 ABENGOA BIOENERGY Stakeholders process comprises four stages: preliminary diagnostic of the purchasing system, supplier analysis, critical supplier audits and, finally, supplier assessment or rating. Implementing the system has required collaboration among Abengoa’s different purchasing departments in order to carry out an exhaustive diagnostic study of the existing purchasing system (phase 1), in addition to selecting evaluation criteria in keeping with the particular features of each company activity and carrying out risk analysis to determine suppliers posing a greater threat in terms of CSR-related risk (phase 2). Variables taken into account in conducting this analysis include the supplier’s country of origin, supply nature, degree of visibility and solvency risk. 2012 Corporate Social Responsibility 52 ABENGOA BIOENERGY Environment Environment 2012 Corporate Social Responsibility 53 ABENGOA BIOENERGY Environment Policy, compromise and objectives The natural resources available on our planet are limited, and over-consumption or irresponsible exploitation may make development unsustainable. We therefore now more than ever need a new global social focus and local action on the environment. Companies, as central players within the social context, must make their contribution by providing innovative solutions helping us to meet the challenge of sustainable development. Abengoa Bioenergy, which has since the very outset been committed to sustainable development and combating climate change, incorporates within the achievement of its company objectives a policy of focusing not only on ensuring that its products and services contribute towards sustainable development, but also that they are generated in a sustainable manner, contributing to economic progress, social fairness and preservation of the environment. The rational use of natural resources and conservation of the environment are the tools currently available in order to build a more sustainable world. For Abengoa Bioenergy, such sustainability is based on two principles, first, the development of technologies serving to provide clean sources of energy, and second an impact on social commitment and environmental education. Abengoa Bioenergy carries out industrial production activities in the energy sector. It develops biofuels for transportation, as well as bioethanol and biodiesel among others, plus chemical bioproducts which use biomass (cereals, sugar cane, cellulose biomass, oleaginous seeds, etc.) as raw material. Biofuels are used in the production of gasoline additives (ETBE) as well as in direct mixtures with gasoline or diesel oil. Abengoa Bioenergy is also developing new biofuels (kerosene for aviation and biodiesel from sugar). The chemical bioproducts will be identical to those produced at present by the petrochemical industry in terms of functionality but, in turn, they will be more sustainable and will focus on immediate replacement within the already existing markets. As sources of renewable energy, biofuels and chemical bioproducts reduce CO2 emissions and enhance the safety and diversification of the energy supply, thus decreasing the dependence on fossil fuels used in the automotive, aviation and petrochemical industries and improving compliance with the Kyoto Protocol. On the other hand, Abengoa Bioenergy devotes a part of its efforts and resources to support activities that have an impact on the improvement of quality of life and training of individuals. Bioethanol is obtained on an industrial scale from cereal fermentation, prior enzyme hydrolysis and after a distillation process, which eliminates volatile impurities generated during said process, and another dehydration process, which allows eliminating excess water coming from distillation. Under these conditions, bioethanol is used for a direct mix with petrol in an 85 % proportion (e85) becoming a renewable substitute for petrol. Abengoa Bioenergia Brasil obtains bioethanol as from sugar cane juice fermentation collected after sugar cane grinding and subsequent distillation. Bagasse, which is the fuel of the power generation system, is separated during grinding, and vinasse, used as fertilizer in sugar cane plantations, is separated during fermentation. On the other hand, Abengoa Bioenergy operates a biodiesel production plant in Cádiz that uses untreated vegetable oils as raw material. Biodiesel is a renewable biofuel formed by long chain methyl or ethyl fatty acid esters; in the case that the esters forming the biodiesel are methyl, these are known as Fame (Fatty acid methyl ester). It is obtained in the chemical reaction of methanol (or bioethanol) with vegetable oils (rape seed, sunflower, soy and palm). It does not contain sulfur and, compared with the oil-based diesel, it reduces the greenhouse gas (GHG) emissions (CO2, among other) as well as emissions of carbon monoxide (CO), particles (PM) and other polluting products. Bioethanol and biodiesel are clean and renewable sources of energy, which help reduce soil pollution due to their biodegradable, non-toxic nature. Their use reduces energy dependence on fossil fuels and contributes to the security of 2012 Corporate Social Responsibility 54 ABENGOA BIOENERGY Environment energy supply. Their production creates new sustainable rural development opportunities within the context of a more market oriented agricultural policy, since it promotes the development of energy crops and the creation of agroindustries, helping to maintain levels of employment and income in the rural areas. Sustainability The rational use of natural resources and conservation of the environment are the tools currently available in order to build a more sustainable world. For Abengoa Bioenergy, such sustainability is based on two principles, first, the development of technologies serving to provide clean sources of energy, and second an impact on social commitment and environmental education. Abengoa Bioenergy carries out industrial production activities in the energy sector. It develops biofuels for transportation, as well as bioethanol and biodiesel among others, plus chemical bioproducts which use biomass (cereals, sugar cane, cellulose biomass, oleaginous seeds, etc.) as raw material. Biofuels are used in the production of gasoline additives (ETBE) as well as in direct mixtures with gasoline or diesel oil. Abengoa Bioenergy is also developing new biofuels (kerosene for aviation and biodiesel from sugar). The chemical bioproducts will be identical to those produced at present by the petrochemical industry in terms of functionality but, in turn, they will be more sustainable and will focus on immediate replacement within the already existing markets. As sources of renewable energy, biofuels and chemical bioproducts reduce CO2 emissions and enhance the safety and diversification of the energy supply, thus decreasing the dependence on fossil fuels used in the automotive, aviation and petrochemical industries and improving compliance with the Kyoto Protocol At Abengoa Bioenergy we have as a main objective to become recognized as world leaders in the production of biofuels and in the development of innovative technology solutions that contribute to the sustainability of the transportation sector and in the manufacturing of biochemical products. This objective can only be achieved if the development of all our activities is closely tied to the basic pillars of sustainability: Respect for the environment. Social development. Economic benefit. To comply with the aforementioned principles at Abengoa Bioenergy we define the following sustainability actions in our mission, vision and values, which meet and direct all of our activities: Value creation. Certification of raw materials. Reduction of greenhouse gas emissions. Personal and professional staff development. Efficient use of natural resources. From an environmental point of view, Abengoa Bioenergy contributes to society mainly through biofuels. They are a renewable source of fuels, which, bearing in mind their life cycle, imply saving greenhouse effect gas emissions and favor, therefore, global warming reduction. In addition, the company conducts a strict environmental control on the development of its activities, not only based on emissions control, but on all possible impacts of environmental externalities. Therefore, facilities are designed from the beginning of the projects addressing the effect of the location on biodiversity, conducting the corresponding environmental impact assessments and optimizing the use of natural resources and energy. 2012 Corporate Social Responsibility 55 ABENGOA BIOENERGY Environment During its life, productive centers are furnished with facilities that enable strict control, cleaning and dumping reduction, the latter being the focus of most of the efforts on achieving maximum reutilization of natural resources. To ensure the environmental management system, companies are certified under the ISO 14001:2004 standard, maintaining an open and transparent communication with local authorities. As a leader in the development of sustainable solutions for transportation and according to the mission, vision and values of the company, Abengoa Bioenergy is developing a huge effort to find and develop more sustainable solutions for the transportation sector. Since its birth, the company has focused its strategy on the development of technologies that contribute to Sustainable Development, among which are: Production of biofuels from lignocellulosic biomass. Development of alternative technologies for the generation of renewable electricity. Development of systems for producing lignocellulosic biomass under sustainable schemes, avoiding deforestation and the use of high biodiversity areas. Demonstration projects of hybrid production systems to bring the technology to commercial scale. Improvement of the life cycle of the facilities and production processes, increasing CO2 emissions savings in the transport sector. Development of their own certification Standard (RBSA) to demonstrate the sustainability of the biofuels produced this Standard was approved by the European Commission in July 2011. Develop processes for the valorization of urban solid residues fractions for biofuels production Develop and apply catalytics processes for biofuels and bioproducts production Develop and improve new enzymes for the degradation of cellulose. The main objective is to be a reference as a world leader in the production of biofuels, developing innovative solutions and advancing in the technology of biorefinery, basing all activities on respect for the environment, social development and economic sustainability. Main environmental indicators As a technologically-focused and responsible company committed to its social context and to the environment, Abengoa Bioenergy aims to ascertain the impact of its activities on the natural world. Calculation of Abengoa’s environmental indicators takes into account work facilities, their associated activities, and all projects promoted directly by the company. Taken into consideration for other projects were the main figures deriving from company operations, excluding raw material inputs, consumption and waste attributable to the developers of these projects, and likewise excluding activities involving maintenance or operation conducted at customer facilities and procurement between Abengoa Bioenergy companies. In order to enhance the reliability of the environmental indicators, improvements have been made to the computing tool developed in 2010 to gather and add the data subject matter of analysis. All the indicators have been calculated as from the specific protocol of measurement and calculation in order to homogenize application criteria. Some values of previous years have been corrected in accordance with the new revised classification criteria. Due to the nature and diversity of Abengoa Bioenergy activities, it is possible to observe the most relevant concepts associated to the different environmental aspects since it is not worth to make a full-scale relationship of all of them. Therefore, the data available has been added and 2012 Corporate Social Responsibility 56 ABENGOA BIOENERGY Environment consolidated in a way to provide a concise and real image of the organization´s environmental impact based on the different activities developed. In terms of material consumption, the main consumption differences between 2011 and 2012 can be attributed to the change in the production volume of bioethanol and, consequently, of the co-products in 2012 with respect to 2011. Besides, it must be considered that some material groups have changed in accordance with new revised classification criteria. Environmental impact control, awareness, and minimization The following, among others, are some of the most significant activities that have been carried out in order to minimize environmental impacts: prevention-related initiatives, environmental management, effluent and waste inspections, internal and external audits, certification by authorized entities, employee training, and the use of clean technologies. Office paper consumption Abengoa Bioenergy is implementing a number of plans to reduce the paper used in its offices. Paper P a pe r ( t) Re cycle d pa pe r ( t) Ca rtón ( t) Total 2010 2011 2012 12.47 1,3 0,12 13.89 64.05 0.58 0.75 65.38 23.25 19.67 2.17 45.09 Raw Material Abengoa Bioenergy produces biofuels, sugar and animal feed, employing various raw materials, mainly cereal, sugarcane and vegetable oils. Its production processes also consume energy and water. With the aim of achieving the least possible environmental impact and optimizing all company processes, strict supervision of the consumption of these raw materials and natural resources is applied. The raw materials and substances most heavily used in the process of producing biofuels and their byproducts are listed below. The number of substances employed is extremely large, most being used in insignificant quantities.The percentage of used materials which are reused materials has been 0.006 % 2012 Corporate Social Responsibility 57 ABENGOA BIOENERGY Environment Raw materials (t) Ve ge ta l oils Bioma ss S uga rca ne C e re a l Wine a lcohol Vina sse 2010 2011 2012 -1,742 5,201,195 3,070,990 9809 1,041,854 160,882 970 4,364,770 5,991,561 --- 128,610 607.5 4,851,562.7 5,048,674.5 -280,189.4 Chemical compounds Chemical compounds (t) C itric A cid C hloridic A cid P hosphoric A cid S ulfa mic A cid S ulfuric A cid A monia c S ulfu Lime Ble a ch S odic M e tila te Othe r C he mica ls C a ustic S oda 2010 2011 2012 240 1,758 319 40 11,420 3380 -4,006 652 2,604 29,889 9,719 269 6,073 340 466 76,137 40,347 -3,640 9,349 2,760 26,353 387,525 134 1,396 272 31 13,509 1,517 -4,496 984 2,154 44,468 11,490 Other materials and compounds Other materials and OtherOther materials and compounds (t) (II) (t) materials and compounds compounds (t)(II) (I) als and compounds (t) (II) 2010 2 19 58896 283 344 188 103179 14109 ride 926 n phospate 781 856 547 319 -- 2011 2012 2010 2010 2 2 20 20 1 1 20 0 1 1 2 22 17 1917 2012 2200112210 1 2 7,677 2 7,677 7.68 2,921382 2.92 2,921382 17 71,244 1,506.14 71244 1506,14348 58896 71244 1506,14348 11,961 179.66 11961 179,659918 283 11961 179,659918 Fats Fa ts 2 Fats 7,677 17 Antibiotics 2,921382 A ntibiotics Antibiotics 19 19 E71244 nzyme s 58,896 Enzimes 1506,14348 58896 Enzimes Ye a sts 283 11961 Yeasts 179,659918 283 Yeasts Othe r S a ls 5,34 344344 3,190 5.34 3190 Other Sals Other Sals 3443190 31905,34 5,34 Brine 188 376 422.69 376 Brine 422,688982 188 376 422,688982 188 -376 -422,688982 Filte r ca k e Brine 103,179 -- Filter Cake -103179 --103179 --C a lca re ous Filter Cake 14,109 22,693 27,394.75 Calcareous 27394,745 14109 22693 27394,745 P22693 ota ssium chloride 926 758 Calcareous 14109 22693 --27394,745 758 Potassium chloride -- phospha te 758 M onoa mmonium 781926 857 Potassium chloride 926 758 --P la857 steMonoammoniun r 856781 8,147 --phospate 857 Monoammoniun phospate 781 857 -S8147 iliconPlaster 547856 537 333.20 -8147 -Plaster 856 8147 -Ble537 a ching sa333,2 nd 319547 301 191.79 Silicon 537 333,2 Silicon 547 -537 -333,2 C ompost -301 Bleaching 191,787 sand Bleaching sand -- Compost -Compost 2012 Corporate Social Responsibility 319 -- 58 319 -- 301 -- 191,787 301 --- 191,787 -- ABENGOA BIOENERGY Environment Other Other materials materials and and compounds compounds (t) (t) (II) 2010 Biocide s Fats N utrie nts Antibiotics Fe rtilize rs Enzimes M ola sse s Yeasts 2 0 1 12 0 1 0 2 0 1 22 0 1 1 2012 72 3772 1.32 7,677 -- 68 19 40.23 17 2,921382 19,542 28,115 58896 25,821.43 71244 1506,14348 254,005 131768 283 -11961 179,659918 -- -344 9784 216,620 188 Othe r BiocideOther s Sals -3190 5,34 U re a Brine 12,081.5 376 422,688982 M e tha nol Filter Cake 14,438 16,345 103179 12,499.53-- -- Lubrica nt OilsCalcareous 20 249 14109 40.97 22693 27394,745 Wood Potassium chloride -- -926 92.17 758 -- M e ta ls Monoammoniun phospate 49 260 781 66.20 857 -- P la stics y P olyme rs Plaster S pa re s Silicon Othe r ma te riaBleaching ls sand 39 104 856 10.48 8147 -- 105 100 547 32.3 537 333,2 -- -319 7,450.16 301 191,787 -- -- -- Compost Energy Abengoa Bioenergy's plants and offices consume energy in one way or another in production and office processes. The energy required to power bioethanol production at the plants mainly uses gas as a source of energy in Europe and the United States, while operations in Brazil also employ the combustion of bagasse (the remnants of the sugarcane plant following sugar extraction). Direct energy consumption (GJ) 2010 Biofuels Biomass Coal derivatives Petroleum derivatives Naturalgas Others Total 2012 Corporate Social Responsibility 178,826 11,701,313 -3,777,021 19,484,827 174,912 35,316,899 59 2011 2012 708,914 222,950.08 9,295,080 14,628,447.80 3,555 -2,267,153 603,447.24 27,727,567 25,081,198.26 1,102 1261.81 40,003,371 40,537,305.18 ABENGOA BIOENERGY Environment Indirect energy consumption (GJ) Electricity Thermal Total 2010 2011 2012 1,342,196 1,418,136 2,760,332 1,973,052 1,642,065 3,615,116 1,909,278 1,576,212 3,485,490 The figures for indirect energy consumption in 2010 and 2011 has been included this year due to a new report criteria. Primary energy consumed by power consumption (GJ) Coal Fuel oil Gas Biomass Waste Remainder Total 2010 1,748,699 96,987 1,182,656 52,204 26,103 572,259 3,678,908 2011 1,924,958 145,155 1,567,040 60,691 30,127 741,956 4,469,927 2012 1,793,866 136,307 1,110,221 118,104 12,330 1754367 4,925,195 Energy produced, purchased and sales in 2012 is disclosed as follows: Energy 2012 Energy produced (GJ) Biofuels 50,181,482 Biomass 2,413,080 Energy sold (GJ) Biofuels 50,624,287 Biomass 2,571,085 Gas natural 2 Electric Thermal 4,737,145 2,299,132 Electric Thermal 3,643,072 494 The difference between the biofuel that is produced and sold is due to the purchase of gasoline for the production of different commercial mixtures of ethanol and the buy-sell transactions undertaken throughout the year to meet some specific peak demand of bioethanol. The table below shows the results of proactive efforts to increase energy efficiency through technological process enhancements and other savings measures realized in 2012. 2012 Corporate Social Responsibility 60 ABENGOA BIOENERGY Environment Energy-saving initiatives Initia tive S a vings or inve stme ne ts ( €) 28.53 % reduction in spending on purchase of energy 142,127.43 Gas turbine change. Better process efficiency 2,927,617 Reduction of energy cost due to fluctuation in rates and taxes 54,134.09 52.27 % reduction in spending on purchase of energy 136,427.05 19.79 % reduction in spending on purchase of energy 8,215.87 54.93 % reduction in spending on purchase of energy 31,161.40 Reduced consumption due efficiency cogeneration 85,204.17 Initiatives were in turn implemented with the aim of lowering indirect energy consumption. These initiatives involve business travel and commutes to and from work facilities and include, for example, facilitating bus service for employee transportation, and efficiently managing the supplier portfolio. Water The company’s policy on sustainability prioritizes reduction at source by minimizing the amount used or through reuse of the resource for activities in which potability is not a key factor. The main sources for uptake are round water and third-party supply, the main use being that involved in bioethanol production processes themselves. Water withdrawal (m3) Rive r wa te r We ll wa te r Grid 2010 2011 2012 7,837,198 5,919,389 4,225,076 7,029,148 4,929,392 7,311,336 8,993,795 3,871,654 2,645,927 The amount of recycled and reused water has been 123,905 m3, which is 0.798% with respect to the total volume of water captured in Abengoa Bioenergy. Abengoa Bioenergy’s information system does not show that any of the sources used for 2012 Corporate Social Responsibility 61 ABENGOA BIOENERGY Environment water uptake are included in the Ramsar list of wetlands or can be considered as especially sensitive. Neither is there any record that the annual consumption is more than 5% of the volume of sources affected. Biodiversity The company's operations take place mainly in areas where there is no land owned, administered or leased within biodiversity-rich habitats. This principle fails to apply only in the following exceptions: Most significant biodiversity impacts in protected areas or with high biodiversity CountryCountry where the protected area or that of high value to biodiversity is located Protected Area affected (hectares) Total protected area (hectares) Facility location in relation to the protected area Brazil 0.34 1.64 Brazil 0.2 Brazil 361.52 Type of operation Nature of the protected area Protection status Species affected and degree of Within Extractive Freshwater ecosystem permanent conservation area Risk 0.2 Within Extractive Land ecosystem permanent conservation area Not mesured for the period 758.87 Within Production Land ecosystem permanent conservation area Not mesured for the period Abengoa Bioenergy’s information system has not identified significant impacts on biodiversity in protected natural spaces or unprotected areas of high biodiversity, derived from activities, products and services in protected areas and in areas of high biodiversity values in areas outside the protected areas. Neither were species included in the UICN Red List identified, consequently, no strategies and actions have been developed for managing impacts on diversity. GHG emissions The results of the Abengoa greenhouse gas (GHG) inventory in 2012 provide a complete picture of the emissions derived from company activity; a structured analysis according to the scopes and different sources, which also includes emissions from biomass operations and the differences. This inventory was accordingly disseminated out of a desire for other companies to also be able to situate their climate change policies at the core of their activities and interests. Computation of GHG emissions took into account the direct emissions of all sources under the possession of Abengoa (combustion, process, transportation and emission leaks), indirect emissions from electrical power, thermal energy and acquired steam and the indirect emissions resulting from work commutes, losses in the distribution and transmission of electrical power, and emissions in the value chain of fuels consumed for generating acquired electrical power. Emissions linked to biomass combustion or processing are likewise reported. 2012 Corporate Social Responsibility 62 ABENGOA BIOENERGY Environment Emissions are calculated in accordance with the methodologies of the Intergovernmental Panel on Climate Change (IPCC) and the GHG Protocol, using, whenever possible, specific fuel emission factors; and in other cases, national GHG inventory values of the countries in which Abengoa activities are carried out, and, as a last resort, generic figures published by the IPCC. GHG emissions (t CO2-eq) Emissions 2010 2011 2012 Direct emissions 1,849,817 1,960,843 1,707,006 Direct emissiions Biomass(1) 1,795,486 2,461,962 2,916,564 410,928 420,020 369,390 79,451 106,322.9 76,744.5 Indirect emissions ((2) Other emissions (3) In 2012, emissions associated to products and service acquired (scope 3) are 2,566,956 t, this figure was not included within 2010 Corporate Social Report and 2011 Corporate Social Report (1) According to the GHG protocol corporate standard. (2) Includes emissions from acquired electricity, thermal energy, and steam. (3) Includes exclusively emissions derived from work-related travels (1,704 t), commuting trips to work (1,110 t), loss in transportation of electric energy (27,046 t), and emissions from the supply value chain of fuels used for the generation of purchased electric energy (76,464 t). For Abengoa Bioenergy, the greenhouse gas emissions inventory is an instrument for ensuring responsibility and efficiency in the struggle against climate change. In contrast to other techniques for analyzing the local carbon footprint, the complete accounting of emissions engages all Abengoa companies, in all geographies. Emission measurement in the Abengoa Bioenergy inventory has clear advantages over other instruments: it is thorough, in terms of both the consolidation perimeter and scopes; it is verifiable both internally and externally; it constitutes a global model upon which to base reduction targets; and it binds suppliers to climate preservation policies. Emissions of ozone-layer-depleting substances are insignificant given the volume of Abengoa Bioenergy's activity and are confined to the quantities loaded into cooling equipment during preventive or corrective maintenance operations, with the quantity being certified by the service provider. The total figure for such emissions during the entire year stood at only 1370 kg. Initiatives to reduce GHG emissions Initiatives to reduce GHG emissions Capture of CO 2 released during the production process for sale to green house (ABN) Improving the efficiency of boliers (BCyL) Installation of higher performance turbines (EE) Using renewable electricity (BG) Improvement in the process (ABIL) 2012 Corporate Social Responsibility 63 Estimated reduction (t CO 2 -eq) 120,000 58,089 30,196 11,642 11,467 ABENGOA BIOENERGY Environment Listed below is an example of the most significant initiatives carried out over the course of 2012. Atmospheric emissions Atmospheric emissions (t) 2010 2011 2012 NOX 3,629 3,838 5,435 SOX 192 161 212 CO 9,345 2,229 9,647 HCL 20 0 0 COV 3,149 2,161 3,321 Partícles 2,759 801 1,993 -- 19 16,698 19,094 9,209 37,306 Others Total (t) Wastewater discharge and spills In companies in which, due to the nature of their business, the state of water utilized is negatively altered, suitable treatment is undertaken, with final quality being within the limits established under legal requirements, prior to discharge into a public water source. All discharge operations are likewise authorized and controlled by the pertinent authorities. Discharges (m3) Dischargues Effluents discharged to sewer networks Effluents discharged to outside treatment facilities Effluents discharged to surface water masses Effluent discharges from land infiltration Dispersed or undefined land discharges Delivery for other Abengoa companies Third-party delivery (steam) Discharge into the environment (steam) Total 2010 2011 2012 762,368 1,385,907 792,852 -- -- -- 2,327,084 3,294,624 4,435,889 18 -- -- 773,273 -- -- -- -- -- 3,651,584 1,797,377 3,395,939 -- 1,305,017 825,158 7,514,327 7,782,925 9,449,838 In 2012, 1 m3 of vegetable raw oil was discharged to a water resource in the south of Spain. This information has been registered due to Abengoa Bioenergy's information system. Waste 2012 Corporate Social Responsibility 64 ABENGOA BIOENERGY Environment As part of its normal course of business, Abengoa generates many different types of waste, most of which are monitored through the different environmental management systems implemented in each company. Here the most significant are shown according to final destination. Hazardous waste Hazardous waste (t) Type 2010 2011 Ground or underground deposit 1 26 4 Treatment in soil -- 30 0.0004 Deep injection -- -- -- Surface reservoir 2012 -- -- -- 111 1 0.09 Release into a water body except seas/oceans -- -- -- Release into seas/oceans including sea-bed insertion -- -- -- Biologic treatment 0 0 0 Dumping at specially designed sites Physico-chemical treatment 14 259 447 Land incineration 1,093 0 0.06 Incineration at sea -- -- -- Permant deposit -- 1 -- 108 237 86 Recycling or recovery solvent 50 98 142 Recycling or recovery of other organic substances that aren't used as solvent 8 0 0.01 Recycling or recovery of metals and metal compounds 12 41 36 Recycling or recovery of other inorganic material 16 38 186 -- -- -- 55 -- 0.02 Utilization as fule or other means of producing energy Regeneration of acids or bases Recovery of elemens used to reduce contamination Recovery of components from catalysts -- -- -- Regeneration or other new of oils 27 79 89 Soil treatment, resultin in agricultural benefit or ecological improvement -- -- -- Utilization of wast obtained from operations -- -- -- Other 192 68 21 Total 1,687 878 1012 Non-hazardous waste 2012 Corporate Social Responsibility 65 ABENGOA BIOENERGY Environment Non-hazardous waste (t) Type Ground or underground deposit Treatment in soil 2010 2011 2012 267 168,332 147,282 83,510 6,000 88,685 Deep injection -- -- -- Surface reservoir -- 28 14 402 126 166 -- -- -- Dumping at specially designed sites Release into a water body except seas/oceans Release into seas/oceans including sea-bed insertion -- -- -- 30 77 72 -- 1,565 2,726 Land incineration 168 16 6 Incineration at sea -- -- -- 59 -- 120,992 Utilization as fuel or other means of producing energy -- -- 2,094 Recycling or recovery solvent 1 -- -- 16,378 24,708 4,306 Biologic treatment Physico-chemical treatment Permant deposit Recycling or recovery of other organic substances that aren't used as solvent Recycling or recovery of metals and metal compounds Recycling or recovery of other inorganic material Regeneration of acids or bases Recovery of elemens used to reduce contamination Recovery of components from catalysts Regeneration or other new of oils Soil treatment, resultin in agricultural benefit or ecological improvement Utilization of wast obtained from operations 635 857 684 1,104 611 285 -- -- -- 1,605 -- 0.02 -- -- -- -- -- -- 2,978 2,963 1,075 55 168 307 Other 529 3,973 7,037 Total 30,211 292,109 370,555 In accordance with our environmental management policy, all companies that generate hazardous waste conduct an exhaustive process of identifying and monitoring these types of waste and their quantities in all operations involving transportation to authorized agents, whether they belong to Abengoa or to outside companies. 2012 Corporate Social Responsibility 66 ABENGOA BIOENERGY Environment Hazardous waste transportation (t) France Incoming domestic -- Outcoming domestic 145 Waste imported -- Waste exported -- Brazil -- 697 -- -- Spain -- 5 -- -- United States -- 0.14 -- -- Country Products and services Integration of environmental considerations associated with product and service design helps to lower risk and mitigate ensuing environmental impacts. A design that is favorable to the environment helps us take a more proactive stance in mitigating the level of product and service impact, identifying new business opportunities, and boosting technological innovation. In certain activities, the environmental impacts of products and services that occur during utilization and at the end of their useful life may be of equal or greater importance than those resulting from manufacturing and pose an ever growing environmental challenge. In this regard, no significant impacts derived from transportation of products or other material goods used for company activities or in transporting personnel were identified through the Abengoa reporting system. Nor were any significant quantities of recovered products, containers or packages identified. During 2012, Abengoa Bioenergy has implemented significant initiatives in order to mitigate environmental impacts associated to products and services. Within the frame of the Renewable Energy Directive, the company has developed the RBSA (RED Bioenergy Sustainability Assurance) standard that allows proving the compliance with the Directive´s requirements in terms of any raw material and production process, from the agricultural production to the commercialization of the biofuel, including the industrial transformation processes. The RBSA standard establishes the operating requirements for all the economic agents that participate in it, and for its own management and maintenance, and it defines the highest quality levels in the certification processes and independent audit of the information supplied. Besides, this system includes innovating methodology developed by Abengoa Bioenergy, mainly for the calculation of greenhouse gas (GHG) emissions and the development of sustainable maps, with the purpose of facilitating an efficient and strict implementation in the supply chains of these new sustainability requirements. Fines and sanctions The company's main product is bioethanol, the use of which as a fuel for transportation significantly reduces GHG emissions in comparison with fossil fuels. Abengoa Bioenergy maintains its dedicated commitment to the environment and aims to perform all its production and commercial activities within the context of global sustainability. In its production processes Abengoa Bioenergy makes efforts to recycle and process as much waste as possible in order to minimize the environmental impact. The information channels available to Abengoa Bioenergy recorded no significant fine or non-monetary penalty over the course of 2012 as a result of a breach of laws and regulations. 2012 Corporate Social Responsibility 67 ABENGOA BIOENERGY Environment Environmental expenditure Measuring the expenses for environmental mitigation and protection allows Abengoa to assess the efficiency of its environmental initiatives. Below, we itemize the costs and environmental investments. Environmental Expenditure (€) Type 2010 2011 2012 2,133,440 1,259,510 1,194,903 8,570 94,935 119,318 1,908,987 1,913,744 446,841 67,016 91,009 87,732 13,252 27,677 51,399 Cost of remediation - cleanup and decontamination 114,228 22,934 2,619 Third-party environmental management services 572,228 716,668 415,631 3,350 2,000 17,911 41,187 64,133 66,820 Personnel for activities arising from environmental management 652,057 526,462 481,214 Costs of implementing cleaner technologies 271,431 4,086 0 85,805 388,970 567,365 Environmental training -- 1,380 10,011 Research and development -- 22,858 -- Waste treatment and disposal Emissions treatment Expenses from purchasing and utilizing emissions certificates Depreciation of specific equipment, maintenance, materials and services necessary for operation Environmental liability insurance Personnel dedicated to training and instruction Third-party management system certification Other environmental management costs 2012 Corporate Social Responsibility 68 ABENGOA BIOENERGY Community Community 2012 Corporate Social Responsibility 69 ABENGOA BIOENERGY Community Policies, strategies and objectives Abengoa Bioenergy has embraced a commitment to growing alongside the communities in which it operates, fostering the creation of ties that reinforce the company’s long-term relationship with society, while abiding by and promoting human rights within its sphere of influence. Company development cannot be approached from the standpoint of economic growth alone, but must also integrate the perspectives of its members, endeavoring to guarantee them the potential to pursue a rewarding life. Abengoa believes that the best way of meeting their expectations is to forge close ties between the company and society, while maintaining continuous and fluid dialog with stakeholders, achieved through clear and transparent communication and by championing actions that help people progress. Abengoa pursues mutual progress for the company and the community alike by developing and promoting initiatives that contribute towards balanced growth and to reinforcing the ties that bring the company and society together. Through the Focus-Abengoa Foundation, the company guides and channels its relationship with the community by creating initiatives that generate tangible and intangible assets and contributing to local engagement by establishing roots, while at the same time promoting scientific and cultural research and dissemination of foundation heritage. The strategic orientation of the Focus-Abengoa Foundation serves companies through which Abengoa conducts its business activities. Since its inception in 1982, Focus-Abengoa has been engaged in pursuits of general interest in four major areas: aid and assistance, culture, education and research, and employee welfare. The foundation has thus effectively become the social force driving Abengoa forward. The foundation understands culture as a hallmark of advanced societies that plays an essential role in social development and progress. Business activity must transcend the economic dimension and play a role in addressing social and environmental challenges. The pursuit of Abengoa Bioenergy's activities is associated with economic and social benefits for the communities where it operates. Neither would make any sense unless they were achieved in line with respect to the environment. Given its aim to respect the environment Abengoa Bioenergy works to minimize the environmental impact of its industrial activities essentially in three regards: Natural resources By supervising and reducing emissions and waste generated By protecting biodiversity in the areas where it operates The company optimizes the use of process chemicals in order to reduce consumption without affecting production performance. As for energy, processes have been optimized in order to reduce electrical consumption, and thereby reduce greenhouse gas (GHGs) emissions. All emissions at production centers are monitored with the aim of minimizing them as far as possible, complying with and surpassing the requirements laid down in the legislation in place in the company's operational areas. This ultimately results, in accordance with the guarantee offered by ISO 14001 certification, in environmentally friendly installations which protect biodiversity in their locations, on the basis, of course, of environmental impact studies guaranteeing that any impact which production plants may have on the environment is minimized. Programmes During 2012, Abengoa Bioenergy didn´t work on any infrastructural project for common public benefit through commercial, in-kind, or pro bono engagement so there are no current or planned negative impacts. Furthermore, it has promoted and carried out activities and actions with general interest goals, aimed at education, cultural and scientific work. Abengoa Bioenergy believes in the innovative company as an instrument that is necessary and effective 2012 Corporate Social Responsibility 70 ABENGOA BIOENERGY Community for progressing towards a society committed to sustainable development. On the other hand, it participates in the actions that Abengoa promotes, principally through its Focus-Abengoa Foundation. All these initiatives aim to contribute to contextual improvements not only in economic but also in social and environmental terms, and hence the interest and well-being not only of the people who work at the company but of all individuals, organizations and communities in the surrounding sphere. During 2012 Abengoa Bioenergy dedicated approximately 265,008 € to programs involving social, cultural, educational and research developments. The companies belonging to Abengoa Bioenergy incorporate within their daily business the values of corporate social responsibility that form an intrinsic and natural element of the company's strategy, culture and organization. To this end they foster and contribute to the development of the following activities: Contribute to organizing training courses as well as for study and research. Collaboration with universities. Participation in fairs and congresses Support to environmental awareness initiatives. Collaboration with an association that worked for integration and employment of disabled workers Support in the organization of local festivals Sponsorship of equipment for youth and local sports events and teams Conference sponsorship Support for civic organizations and institutions to promote projects devoted to human development and social work. Improvement in maintaining services in those areas where the plants are located In the United States social responsibility and community development initiatives are a priority for Abengoa Bioenergy. Every year a series of activities are planned to promote the good name of the company and provide it with public recognition through activities of a social nature. These efforts include contributions to civic and charitable organizations, involvement with local schools and universities, participation in events, improvements in the safety and appearance of production plants and environmental awareness-raising. In Brazil initiatives are implemented and planned to guarantee social development and a sound education system as the foundation for future generations, along with an infrastructure network and the corresponding developments in order to guarantee optimum working conditions in the local communities where the company is established. Meanwhile, the pursuit of our activities is intended to favor the development of suppliers, promoting the outsourcing of services and allowing for industrial growth in the area. Partnerships and agreements In 2002, Abengoa signed the United Nations Global Compact. This agreement involves, on the one hand, supporting and respecting the protection of human rights and, on the other, in the area of labor rights: elimination all forms of discrimination at work and occupation, as well as all kind of forced or obligatory work, effectively abolishing child labor, respecting freedom of association and the effective recognition of the right to collective bargaining. And in 2007 the company also signed up to the United Nations Caring for Climate initiative. As a result, Abengoa Bioenergy has implemented a greenhouse gas (GHG) reporting system which will serve to account for its greenhouse gas emissions, establish the traceability of all supplies and certify the products and services it offers. Abengoa Bioenergy works with local communities and populations in undertaking a number of social projects: 2012 Corporate Social Responsibility 71 ABENGOA BIOENERGY Community External social actions Country Brazil Society I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil Spain I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil I10- Abengoa Bioenergía Brasil D15- Bioetanol Galicia, S.A E55- Biocarburantes de Castilla y León, S.A G13- Abengoa Bioenergía San Roque, S.A France F84- Abengoa Bioenergy, S.A Netherlands G18- Abenoga Bioenergy Netherlands, B.V Issues Asociations National AIDS campaign "Together project". To promote and defend the employee's quality of life and dignity Flu and tetanus vaccination "A newborn child adopts project". 30 children were benefited and two members of the enviromental police "Internal talent project" Professional development and better quality of life Blood donation Internal newsletter. Participation in the areas of culture organizational, knowledge and projects of communication Health circuit project Pre-renovation project Renovation project "Alive school project". Abengoa Bioenergia Brasil helps 1800 children who live in the city of Santa Cruz das Palmeiras Focus foundation Interactive human resources projetc Winter clothes project "Bulling in the work" conference Conferences Schooling "Madeo River" sponsorship Collaboration between neigboring town halls "Venerable cofradia del Santisimo Cristo de la Humildad y Paciencia" sponsorship Sport activities, local and cultures events, disabled helps Brielle and Massluis town halls collaboration Because of the nature of the inversions and operations of Abengoa Bioenergy, the operations in the communities have a permanent character and it aims specially a long term relation with the communities. 2012 Corporate Social Responsibility 72 ABENGOA BIOENERGY Community Conferences World Biofuels 2012 For the eleventh consecutive year, on May 2012, the World Conference on Biofuels ‚World Biofuels 2012‛ was held at the Hospital de los Venerables, headquarters of the Focus-Abengoa Foundation in Seville. This cycle, defined in the Focus-Abengoa Forum on Energy and Climate Change, has become a reference forum among experts of the biofuel and biodiesel sector of the main global markets. During the conference, participants went over the main changes and advances in the sector during the last year, highlighting the major advances that have been developed in this field mainly in United States and Europe. They also studied the possible legal amendments that current markets require and they debated on the challenges and goals set for the next years, especially through bioproducts. The world conference on biofuels ‚World Biofuels 2012‛ aims to promote, through public discussions, a genuine open platform for the research, presentation and debate of ideas and results through those actions that are deemed to be appropriate at any given time based on the nature of the issues to be analyzed. 2012 Biomass Conference Abengoa Bioenergy also took part in the 2012 Biomass Conference event, held on July 2012 in Washington, D.C. Approximately 700 members of the advanced biofuel industry, scientists, academicians and other participants assisted to the event sponsored by the US Department of Energy (DOE). More than 80 speakers shared the last progresses in advanced biofuels. Asociations Abengoa Bioenergy is an active member of associations of renewable energy researchers and producers, leading and promoting the use of this type of fuel with the benefits which it offers in response to climate change. Its aims include publication and awareness-raising within society and the political establishment of the benefits of biofuels and the need for favorable legislation, this being vital in order to allow bioethanol and biodiesel to grow as substitutes for fossil fuels and as an option in fighting climate change. The company thus has a presence within the main associations in the three major geographical areas where it performs its activities. ePURE - European Bioethanol Renewable Ethanol RFA - Renewable Fuel Association UNICA - União da Indústria de Cana-de-açúcar Biotechnology Industry Association APPA Biocarburantes, Asociación de Productores de Energías Renovables (España) Asebio, Asociación Española de Bioempresas (España) Kansas Alliance for Bioenergy and Biorefining Amfep - Association of Manufacturers and Formulators of Enzyme products. 2012 Corporate Social Responsibility 73 ABENGOA BIOENERGY Community Transparency and fight against the corruption Abengoa Bioenergy subscribes to Abengoa's principles and systems in terms of transparency and anti-corruption. Last year a decision was reached to include within the Abengoa Professional Code of Conduct an express declaration of the company's adhesion to the United Nations Convention against Corruption, passed by the UN General Assembly in 2003. The aim of this text is to promote and strengthen measures to prevent and combat corruption more effectively; to promote, facilitate and support international cooperation and technical assistance in the prevention of and fight against corruption, including asset recovery; to promote the integrity, enforced accountability and due management of public assets and affairs. During this financial year, the Internal Audit Department of Abengoa Bioenergy has issued 113 audit reports that include, among other aspects, the results of reviews and analyses of risks connected with the corruption at those companies classified as being material, while nine legal audits were performed, which, although they do not have an analysis or specific risk control systems, they complement the audit reports and are able to detect situations which could potentially be classified as corrupt. Through the information channels that Abengoa Bioenergy has available, neither incidents related to corruption have been recorded in 2012, nor incidents related to monopolic practices or against free competition have happened, nor significant sanctions arising from breach of laws and regulations have occurred. Abengoa Bioenergy has not signed up for any standard or voluntary code related to marketing, advertising or other promotional or sponsorship activities, but has a demanding and strict internal procedure to control external communications included in the internal company standards. This control system implies the existence of a chain of internal authorizations that reach, as a last instance, the president of the company. All responsible parties of the areas involved must authorize and complete the information, which guarantees that the communications generated neither violate the company’s principles and values nor go against the Code of Conduct. Whistleblower channels Together with the audit committee, Abengoa manages a whistleblower mechanism, which was implemented in 2007 in accordance with the requirements of the Sarbanes-Oxley act. The company currently has two whistleblower channels in place: Internal: available to all employees via electronic mail or ordinary mail whereby they may report any irregularities in matters of accounting, auditing or breaches of the Abengoa code of conduct. External: enabling any third parties unrelated to the company to report irregularities, fraudulent acts or conduct that contravenes the Abengoa code of conduct via the corporate website Claims may be submitted with the petition of assurance of whistleblower confidentiality, and may also be sent in anonymously. Abengoa’s aim in creating these channels is to provide a specific means of communication with company management and governing bodies serving as an instrument for reporting any incident that potentially involves irregularity, non-compliance or conduct that runs contrary to the ethics, legality and norms governing the group. No claim in the organization’s companies has been made through the information channels that Abengoa had available in 2012, with respect to this issue. Abengoa also takes part in any scheduled scientific, technological or cultural events that may interest it in the cities or regions where it operates. Generally speaking, any activity considered lobbying is only undertaken with the backing of the different professional associations for the sectors of activity of Abengoa’s various business groups. In the USA, the company engages in lobbying through the following professional associations: Cornerstone Government Affairs, Renewable Fuels Association, Association of Nebraska Ethanol Producers, Association of Missouri Ethanol Producers and the Kansas Association of Ethanol Producers. In 2012, no contributions were made to political parties or related institutions. 2012 Corporate Social Responsibility 74 ABENGOA BIOENERGY Economic performance Economic performance 2012 Corporate Social Responsibility 75 ABENGOA BIOENERGY Economic performance Creation of value Abengoa Bioenergy is committed to a corporate strategy which focuses on the creation of long-term, sustainable value for all its stakeholders: suppliers, customers, shareholders, employees, society at large and those communities where it has a presence through its business groups. The generation of corporate value is therefore directly connected with the handling of each and every stakeholder group, along with the need to coordinate and strike a balance between the organization and stakeholders and among them through society. We must strive for a balance between maximizing the profits and interests of each group and the cost of obtaining such maximization, understood as any detriment to the profits or interests of one group compared with another. Abengoa Bioenergy creates value by administering its contribution to its stakeholders and the contribution which they make to it. The products and services sold by Abengoa Bioenergy create value for its customers to the extent that they respond to customer needs and certify their expectations in accordance with the evolution of its operational sector. The company generates value through quality and safety. Suppliers benefit through goods and services, with a positive impact on economic development. The creation of shareholder value is manifested through the payment of dividends and a continuous increase in the organization's share price. Abengoa Bioenergy creates value for its employees through training, motivation, salaries and a balance between professional development and personal growth. It creates value for society and those communities where it has a presence through sustainable development practices, protection of the environment, respect for human rights, economic development, job creation and the payment of taxes. In addition to the comprehensive economic and financial information set out in Volume 2, Legal and Economic/Financial Report 2012, this chapter also includes a series of indicators regarding the impact of Abengoa Bioenergy activities on those communities where it operates and on its stakeholders. We below quantify the direct economic value generated and distributed, in accordance with the methodology developed by Global Reporting Initiative (GRI). Taxes payment (k€) Country Brazil Switzerland Germany Spain France United Kingdom Netherlands United States Total 2012 Corporate Social Responsibility 2012 -11,551 0 3 5,290 11,948 188 -17,834 17,220 -29,176 76 2011 - 14,256 0 10 4,939 6,652 -1,734 6,135 1,746 ABENGOA BIOENERGY Economic performance Key figures (k€) 2012 Net revenues Other operating income Financial income Profits of associates Profit from discontinued operations Economic Value Generated (EVG) Raw materials expenses Third-party partners Expenses from employee benefits Operating costs R&D costs Financial charges Dividends Corporate income tax Investments in the community Economic Value Distributed (EVD) Economic Value Ratained (EVR)* Material financial government aid received as capital subsidies Material financial government aid received as operating subsidies Material financial government aid received 2012 Corporate Social Responsibility 77 2,137,579 100,044 45,515 2,283,138 1,739,775 -2,025 128,146 276,625 929 351,579 -156,015 2,339,014 -55,876 - ABENGOA BIOENERGY Economic performance Corporate governance 2012 Corporate Social Responsibility 78 ABENGOA BIOENERGY Corporate governance Board of directors The current board of directors was constituted in July 2007. In 2012, it was formed by nine members, eight board members, and one Non-board member secretary, which provide a diversified composition Javier Salgado Leirado President Alberto Aza Custodio Director Cándido Velázquez-Gaztelu Ruiz (see obituary) Director Javier Rupérez Rubio Director Juan Verde Suárez Director Luis Solana Madariaga Director Marcos Ramírez Silva Director Ramón de Miguel Egea Director Santiago Seage Medela Director Salvador Martos Barrionuevo Non-board member secretary Board committees The board committees shall meet as often as necessary to cover these duties, at least twice a year, and on all occasions when convened by the chairman, at its own initiative or at the request of any of its members. Meetings of the Committees will also be valid when, all members being present, they agree to hold a session. The board committees shall be considered validly constituted when the majority of the members are present. Attendance can be delegated to another board member. The resolutions shall be validly adopted when the majority of the members present in the committee vote in its favor. 2012 Corporate Social Responsibility 79 ABENGOA BIOENERGY Corporate governance The board committees are formed by three non-executive board members designated by the board of directors, for a maximum period of four years, renewable for maximum periods of the same duration. The Secretary of the board of directors acts as committee secretary. Board committees Appointments and Remuneration Committee Audit Committee New Technologies committee Appointments and remuneration committee The functions and competences of the Appointments and remunerations committee are the following: Report to the board of directors about new appointments, reelection, end of activity of any of the board members and their position, as well as the general policy of remunerations and incentives for the members and the senior management. Provide a preliminary report on all proposals to be presented by the board of directors to the shareholders for the appointment or end of activity or resignation of board members, even in the event of co-opting by the board of directors itself. Draw-up an annual report on the activities of the appointments and remunerations committee. Assess the competences, knowledge and experience of the board members, define the abilities and skills that candidates need to have in order to fill the vacant positions, as well as evaluate the time and dedication needed for an appropriate performance of their tasks. Report the new appointments and end of activity of the senior managers proposed by the chairman to the board of directors. Report the board of directors on miscellaneous matters. Report the board of directors of the remuneration policy of directors and senior managers. Inform the board of directors about the individual remuneration of the board members and the approval of Contracts that the company enters into with each counselor. Ensure the compliance with the remuneration policy established by the company. Seek for the chairman or CEO advice, especially in matters related to the executive directors and senior managers. Appointments and remuneration commitee D. Candido Valázquez-Gaztelu Ruiz (president) D. Ramón de Miguel Egea D. Luis Solana Madariaga D. Salvador Martos Barrionuevo (secretary of board of directors) 2012 Corporate Social Responsibility 80 ABENGOA BIOENERGY Corporate governance Audit committee The functions and competences of the audit committee are the following: Provide a report of the annual accounts as well as quarter and half-year financial statements, to be submitted to the parent company, shareholders, financial institutions, public and private organizations, etc., mentioning the internal control systems, supervision of compliance through internal audits, and, if applicable, the accounting criteria applied. Report to the board on any change in the accounting criteria and on-balance sheet risks and off-balance sheet risks. Inform at the general shareholders meeting about the matters raised by the shareholders with respect to their competence. Propose the appointment of external auditors to the board of directors so as to be presented at the general shareholders meeting. Supervise the internal audits. The committee will have full involvement in the internal audit. It will also report during the process of selection, appointment, removal and reappointment of the director and approval of his/her remuneration, and will have to inform the budget of the department. Be aware of the process of financial reporting and the internal control systems of the company. Meet with the external auditors in order to receive information about those matters that may imply a risk to their independent judgment and any other matter related to the auditing process. Summon the Counselors deemed appropriate to the meetings of the committee, so that they inform on the agreements being taken by the audit committee itself. Elaborate an annual report on the activities of the audit committee, which should be included in the management report. Audit commitee D. Javier Rupérez Rubio (president) D. Alberto Aza Custodio D. Ramón de Miguel Egea D. Salvador Martos Barrionuevo (secretary of board of directors) New technologies committee The functions and competences of the new technologies committee are the following: Report to the board of directors about the status of the new technological developments regarding biofuels. Report in advance, all the proposals that the board of directors may submit to the general meeting for the adoption of agreements corresponding to the new technologies applicable. Inform and give advice on the investment policy in new technologies. Prepare an annual report on the activities of the new technologies committee and related progress. 2012 Corporate Social Responsibility 81 ABENGOA BIOENERGY Corporate governance New technologies commitee D. Luis Solana Madariaga D. Alberto Aza Custodio D. Ramón de Miguel Egea D. Marcos Ramírez D. Javier Rupérez Rubio D. juan Verde Suárez D. Salvador Martos Barrionuevo (secretary of board of directors) Obituary Cándido Velázquez-Gaztelu Ruiz (Jerez de la Frontera, 1936 - Madrid, November 8th, 2012). Advisor of Abengoa Bioenergy from August 10th, 2010 until his death on November 8th, 2012. While he was part of the board of directors of Abengoa Bioenergy, he presided over the appointments and remuneration committee. He was born in Jerez de la Frontera in 1936; he graduated from the University of Granada University in law and social Studies. He held and MBA from IESE of Barcelona. He began his professional career teaching at a university level and, in 1961, he joined the business in managerial positions of Coca-Cola in Malaga. He held high responsibility positions in some of the most important multinational companies of the country. Likewise, he was president of Telefónica and top manager of Tabacalera, between 1982 and 1996. He was president of Accenture Advisory Board, advisor of several companies and president of the Association of Tobacco Companies (AET Asociación Empresarial del Tabaco). Remuneration and other provisions The remunerations paid out to the members of the Board during fiscal year 2012 to all members of the parent company’s Board of Directors has been 232 thousand euros as remuneration and 25 thousand euros in expenses. The company had in place no obligations on behalf of members of the Board of Directors in any regard at the close of the 2012 fiscal year. 2012 Corporate Social Responsibility 82 ABENGOA BIOENERGY Corporate governance Board of directors remmuneration (k€) Expenses 25 Remmuneration 232 Total 257 There are neither advances nor credits granted to the group of members of the Board of Directors. Additionally, during the fiscal year 2012, the remuneration paid to the company’s top management (including the remuneration for their functions as top management to those board members who also form part of the company’s Top Management) has come to 6,879 thousand euros (4,696 thousand Euros in 2011). Since July 19, 2003, the date on which the securities market law 26/2003 came into force, modifying Law 24/1988, of July 28, and the revised text of the corporations law, with the aim of reinforcing the transparency of limited companies, the members of the board have not held, except for those indicated below, shares in the capital of companies that carry out activities directly with the same as, similar or complementary nature to that which constitutes the corporate purpose of the parent company. Likewise, they have not carried out nor do they carry out activities on their own name or on behalf of any other party that are of a similar or complementary nature to the activity, which constitutes the corporate purpose of Abengoa Bioenergy, S.A. On the other hand, there were no companies susceptible to the application of the horizontal consolidation regulated in article 42 of the commercial code in either 2012 or 2011. Risk management model The risk management structure of Abengoa Bioenergía, as a subsidiary of Abengoa, is based on three fundamental pillars: Common management systems, wich are used to mitigate business risks. Internal control procedures on the elaboration of financial information designed in accordance with the SOX (Sarbanes-Oxley act), to mitigate the risks associated with the reliability of financial information. Abengoa’s risk universal model, which is a methodology that quantifies the company’s risk exposure through a dynamic system of impact and probability indicators. This tool helps managing, identifying, mitigating and monitoring business-related risks. These elements constitute an integrated system which enables an appropriate risk and control management at all levels of the organization. It is a live system which undergoes continuous modifications to be kept in line with the reality of the business. Once again, the company has put the internal control system through an independent evaluation system in accordance with the PCAOB audit regulations. 2012 Corporate Social Responsibility 83 ABENGOA BIOENERGY Corporate governance Abengoa Bioenergy has voluntarily implemented and audited SOX in accordance with PCAOB audit regulations, which apply to companies trading in the USA stock exchange market and, additionally, has a risk management system whose design and implementation is in accordance with ISO 31.000 and has been validated by an external auditor. Master plan: sustainability within the company’s strategy In 2008, Abengoa devised a CSR master plan, establishing the strategic lines for the entire company to follow in aspects relating to CSR in all its dimensions: economic, social and environmental. The Master Plan has been gradually entrenched throughout the different levels of the company and in the different regions in which Abengoa operates. Regular committees with the CRS and business-unit managers have been set up to track and monitor the plan. A Committee of skilled will also be set up in 2013, comprising the heads of the most important CSR divisions. This comittee will analyze and update the strategic lines of the current plan to bring them in line with the prevailing business, environmental and social situation. Also it will address address and respond to stakeholder expectations. In going about this task, the committee will rely on the recommendations of the Independent Panel of Experts in Sustainable Development (IPESD) and all the materiality analyses conducted over the last two years1. The various subject areas of the Master Plan are structured and managed through McKinsey’s three growth horizons, enabling the company to handle three scenarios simultaneously based on the extent to which each of the areas has been developed and integrated into the company. 2012 Corporate Social Responsibility 84 ABENGOA BIOENERGY Corporate governance Additional information 2012 Corporate Social Responsibility 85 ABENGOA BIOENERGY Adittional information CSR report principles and scope This report covers the period from January 1 to December 31, 2009. The report has been produced each year since 2003, as an independent report specific to the bioenergy business group. Activities involving the production and sale of biofuels and byproducts had previously been included among Abengoa's activities in its annual report The Abengoa Bioenergy annual report covers the activities and projects of all business group companies, as stated earlier (Stakeholders section) on the three continents where the company has a presence. As new projects are developed and markets opened up in new countries, generally involving the establishment of new companies, the corresponding information will be included in the relevant area of activity. The report has been written with the aim of creating a text which is easy to read and understand, avoiding any in-depth exploration of particularly technical issues. The contents have been defined on a correlated basis in accordance with the guidelines for the Abengoa report, adapting its structure to the inherent characteristics and requirements of Abengoa Bioenergy. The complete report comprises three volumes: Volume 1 - Activities report Volume 2 - Legal and economic/ financial report Volume 3 - Corporate social responsibility report The definition of the report contents identified all issues regarding Abengoa Bioenergy's activities within the global context, analyzing the worldwide economic and legal situation, how this affects the company's operations and in turn how its operations relate to the markets where the company has a presence and to its stakeholders. Additionally, to guarantee the quality of the report, great care has been taken to prepare it following the general principles defined in the G3.1 of the Global Reporting Initiative (GRI) guide, whose purpose is to define a common structure for the Corporate Social Responsibility Reports and guide about its content, scope and coverage which allows readers the chance to compare the different companies and guarantee the quality of information disclosed. When preparing the report, the principles of standard AA1000 AS have also been considered. This is the first global standard assuring sustainability, which provides quality and accuracy in the information contained in the IRSC, guaranteeing the transparency of Abengoa communications and contributing to generating trust among its stakeholders. The principles established under the standard require that the organization be actively involved with its stakeholders, identifying and fully understanding the sustainability aspects that will have an impact on performance for subsequent use of this knowledge in developing responsible business strategies and performance objectives. To comment on any issue regarding the content or other aspects of the Abengoa Bioenergy 2012 annual report, please contact Abengoa Bioenergy's head of communication at the following addresses: 2012 Corporate Social Responsibility 86 ABENGOA BIOENERGY Adittional information Contact Saint Louis (EEUU) 16150 M ain Circle Drive, Suite 300 Chesterfield, M O 630174689 Estado s Unido s Telepho ne: +1636 728 0508 Fax: +1636 728 1148 Madrid P aseo de la Castellana, 31- 3 P lat 28046 M adrid , España Telepho ne: + 34 91319 70 70 Fax: +34 91308 52 42 Sevilla Campus P almas A ltas P arcela ZE 3 P almas A ltas 41014 Sevilla, España Telepho ne: +34 95 493 70 00 Fax: +34 95 493 70 12 Contact may likewise be made by means of Abengoa Bioenergy's corporate e-mail address: [email protected] Abengoa Bioenergy, as a technological and responsible company committed to the social context and the environment would like to know the impact of its activity on the environment. Therefore, within the Abengoa’s environmental policies, in 2008 the company implemented a greenhouse gas (GHG) emissions reporting system, and from this year it has been implementing environmental sustainability indicators. The combination of both initiatives places Abengoa and Abengoa Bioenergy in a global leadership position in sustainability management. This environmental information is regulated by the company’s internal standards, by the principles of the global company and the legislations of the countries where the company operates. Review of its application, implementation and development is a key objective for Abengoa. Hence, internal and external audits have been carried out to check compliance of all processes, standards and procedures of action and internal control established and that guarantee their transparency. In order to facilitate communication on performance, Abengoa has established a reporting system intended to efficiently to ascertain reliable consolidated data for the organization in terms of relevant quantitative indicators regarding Corporate Social Responsibility, for proper administration and disclosure to the company's stakeholders. In 2012 Abengoa reinforced and enhanced the company’s CSR reporting system through the integrated sustainability management system, which combines all material information pertaining to sustainability, thus improving measurement and control of company performance. During 2012 there were no significant changes regarding the consolidation perimeter, despite the previous years. The ISMS is therefore audited internally on a regular basis at all levels in order to guarantee the reliability of the information contained in the system. In 2012 the following internal auditing, review and control procedures were performed: Corporate audits (on CSR, the greenhouse gas inventory, and system implementation). Control and monitoring visits (quality, environment, prevention, inventory, LSR and CSR). Audits conducted at business group-level. Review and control performed at company-level. 2012 Corporate Social Responsibility 87 ABENGOA BIOENERGY Adittional information External verification As an independent external verifier, the firm KPMG reviewed the report in order to check application of the AA1000 Assurance Standard (2008) and Version 3.1 of the Global Reporting Initiative Guide (GRI 3.1), according to the Level A requirements. The review was conducted with a reasonable degree of assurance for all principal and additional indicators reported, for which sufficient proof was obtained to reduce the risk of material error to an acceptably low level. The verification report outlines the scope of the work conducted, as well as the conclusions reached. The methodology followed for the review process was defined according to the stipulations of the ISAE 3000 standard. The report was also reviewed in its entirety by the Global Reporting Initiative and by Abengoa management, and received a grade of A+. Relevant matters As its method for determining relevant issues, defining contents, and ensuring the quality of the information contained in this report, Abengoa chose to apply the three principles defined under the AA1000 AS (2008) standard: inclusivity, materiality and responsiveness; as well as the four GRI principles: materiality, stakeholder inclusiveness, sustainability context and completeness. In 2012 Abengoa conducted an analysis of materiality through a procedure for determining relevant CSR matters, which is centered on two bases for analysis that subsequently intersect to obtain the final result: external factors (those related to the expectations of Abengoa’s stakeholders and the importance the latter attach to the different matters) and internal factors (which determine the significance of the different issues for the business, company management, and, ultimately, in meeting objectives envisaged under business strategy). The use of both perspectives is essential in fulfilling the principle of inclusivity defined under AA1000 AS (2008). 2012 Corporate Social Responsibility 88 ABENGOA BIOENERGY Adittional information 2012 relevant issues Issue Identifity number number Issues 1 2 3 4 5 6 1 2 3 4 6 7 Inclusion of ESG risks in risk management Legal risks and opportunities Awards and acknowledgements Renewable sector as economical driving System to ensure compliance with the code of conduct Anti-corruption measures 7 11 Mechanisms and analysis of projects posing threats involving infringement of human rights 8 9 12 13 Integration of customers' feedback Future of renewable energies 10 16 Intiatives to promote R&D 11 21 12 22 Energy consumption reduction targets Strategy, objectives and implemented measures to reduce CO2 footprint 13 27 14 35 15 36 16 37 Working climate and employee satisfaction surveys 17 18 38 42 Attraction and retention of talent management Health and safety systems 19 48 Integration of feedback from stakeholders 20 49 Assurance of supplier compliance 21 52 22 53 23 24 54 55 25 56 26 57 Improve the health and safety management To promote the biofuels of second generation and increase lobby to defend first generation. Business future: long term visibility of the business Reduce commodities risk Developing career plans for all the employees in accordance with a conciliation between work and family Occupational safety. The continuity of the Business Group Management of environmental incidents Promotion of diversity, non-discrimination, equal compensation between men and women, and professional/personal life balance Measures to promote the equal compensation between men and women, specially in high direction. Indicator EC2 EC2 IRSC 2011 IRSC 2011 HR3, SO3 HR3, SO3, SO4, SO5 HR3, HR4, HR5, HR6, HR7, HR11, SO2, SO3, SO4 PR5 EN6, IRSC 2011 Responsible management balance EN5, EN6, EN7 EN20 EN9, EN12, EN13, EN14, EN21, EN25 LA14, HR4, HR5, HR6, HR7, HR10, HR11 HR4, LA14, LA15 LA3, LA10 Y Manual de acogida LA3, LA10, LA11 LA9 HR1, HR2, HR3, HR4, HR5, HR6, HR7, HR8, HR9 HR1, HR2, HR3, HR4, HR5, HR6, HR7, HR8, HR9 LA8, LA10 Letter from the CEO Letter from the CEO Letter from the CEO LA3, LA15 Letter from the CEO Information on dependent companies Dependent companies are all those over which Abengoa Bioenergy has the power to direct their financial and operating policies. 2012 Corporate Social Responsibility 89 ABENGOA BIOENERGY Adittional information 2012 Corporate Social Responsibility 90 ABENGOA BIOENERGY External verification reports External verification reports 2012 Corporate Social Responsibility 91 ABENGOA BIOENERGY External verification reports 2012 Corporate Social Responsibility 92 ABENGOA BIOENERGY External verification reports 2012 Corporate Social Responsibility 93 ABENGOA BIOENERGY External verification reports 2012 Corporate Social Responsibility 94 ABENGOA BIOENERGY External verification reports GRI index 2012 Corporate Social Responsibility 95 ABENGOA BIOENERGY GRI index Indicator type Page Included in the report Statement from the most senior decision-maker of the organization - 6-7 yes Description of key impacts, risks, and opportunities - 6-7, 9-10 yes - 9 yes 15-19, 23-26 yes Code Definition Profile Strategy and Analysis 1. 1 1.2 Organizational Profile 2.1 Name of the organization 2.2 Primary brands, products, and/or services 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures - 15-16, 19-20 yes 2.4 Location of organization's headquarters - 11, 88 yes Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. - 11 yes 2.6 Nature of ownership and legal form. - 37 yes 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) - 2.8 Scale of the reporting organization. - 11, 13, 15-16, 19-20, 38 yes 2.9 Significant changes during the reporting period regarding size, structure, or ownership - 19-20 yes 2.10 Awards received in the reporting period - 28.29 yes - 87 -88 yes 87 yes 87 yes 88 yes - 87-90 yes 87-90 yes 87-90 yes 2.5 yes Report Parameters Report Profile 3.1 Reporting period (e.g., fiscal/calendar year) for information provided 3.2 Date of most recent previous report (if any) 3.3 Reporting cycle (annual, biennial, etc.) 3.4 Contact point for questions regarding the report or its contents Report Scope and Boundary 3.5 Process for defining report content. 3.6 Boundary of the report 3.7 State any specific limitations on the scope or boundary of the report 2012 Corporate Social Responsibility 96 ABENGOA BIOENERGY GRI index Code Definition Indicator type Page Included in the report 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations - 87 yes 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. - 87-88 yes 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement - 88 yes 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report - 88 yes GRI Content Index 3.12 Table identifying the location of the Standard Disclosures in the report. - yes Assurance 3.13 Policy and current practice with regard to seeking external assurance for the report. - 89-90 yes Governance, Commitments, and Engagement Governance 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. - 79-83 yes 4.2 Indicate whether the Chair of the highest governance body is also an executive officer - 79 yes 4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members - 79 yes 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body - 34-36 yes 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization's performance (including social and environmental performance) - 82-83 yes 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided - 79-83 yes 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity - 79-82 yes 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation - 31-32, 39-40, 51 yes 2012 Corporate Social Responsibility 97 ABENGOA BIOENERGY GRI index Indicator type Page Included in the report Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance - 79-83 yes Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance - 81 yes Code 4.9 4.10 Definition Commitments to External Initiatives Explanation of whether and how the precautionary approach or principle is addressed by the organization Externally developed economic, environmental, and social charters, 4.12 principles, or other initiatives to which the organization subscribes or endorses 4.11 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic - 74-75, 83-85 yes - 39-40 yes 74-75 yes - 34 yes - 34 yes - 34-36 yes - 89-90 yes Stakeholder Engagement 4.14 List of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to 4.15 engage Approaches to stakeholder engagement, including frequency of 4.16 engagement by type and by stakeholder group Key topics and concerns that have been raised through stakeholder 4.17 engagement, and how the organization has responded to those key topics and concerns, including through its reporting. 2012 Corporate Social Responsibility 98 yes ABENGOA BIOENERGY GRI index Definition Indicator type Page Included in the report EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments P 70,71, 77-78 yes EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change P 6-7 yes EC3 Coverage of the organization's defined benefit plan obligations P 41, 47 parciality Significant financial assistance received from government P 77, 00 yes Code Economic performance EC4 Market presence EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. A 45-46 yes EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. P 39-40, 50-52 yes EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation P 6-7, 3 yes P 70-71 yes Indirect economic impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement 2012 Corporate Social Responsibility 99 ABENGOA BIOENERGY GRI index Code Definition Indicator type Page Included in the report Environmental Materials EN1 Materiales Materials used utilizados by weight por peso or volume o volumen P 57-59 yes EN2 Porcentaje Percentagedeoflos materials materiales usedutilizados that are que recycled son materiales input materials. P 57 yes 59 60 yes yes Energy EN3 EN4 Direct energy consumption by primary energy source. Indirect energy consumption by primary source P P EN5 Energy saved due to conservation and efficiency improvements. A 60-61 yes EN6 Iniciativas proporcionar productosory renewable servicios eficientes en Initiatives para to provide energy-efficient energy based products and services, and reductions in energy requirements as a result of these initiatives P 60-61 yes Initiatives to reduce indirect energy consumption and reductions achieved P 60-61 yes P A A 61-62 yes 61-62 yes 61-62 yes P 62 yes P 62 yes A 65 yes A 62-70 yes A 62 yes EN7 Water EN8 Total water withdrawal by source EN9 Water sources significantly affected by withdrawal of water Percentage and total volume of water recycled and reused EN10 Biodiversity EN11 EN12 EN13 EN14 EN15 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Habitats protected or restored Strategies, current actions, and future plans for managing impacts on biodiversity Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk 2012 Corporate Social Responsibility 100 ABENGOA BIOENERGY GRI index Code Definition Indicator type Page Included in the report Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by weight P 62-63 yes EN17 Other relevant indirect greenhouse gas emissions by weight P 62-63 yes EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved A 63-64 yes EN19 Emissions of ozone-depleting substances by weight 62-63 yes EN20 NOx, SOx, and other significant air emissions by type and weight EN21 Total water discharge by quality and destination EN22 Total weight of waste by type and disposal method EN23 Total number and volume of significant spills P P P P P EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. 64 yes 64-65 yes 65-67 yes 64-65 yes A 67 yes A 65 yes P 68 yes P 67 yes P 67 yes A 67 yes A 68 yes Products and services EN26 EN27 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Percentage of products sold and their packaging materials that are reclaimed by category Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Transport EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Overall EN30 Total environmental protection expenditures and investments by type 2012 Corporate Social Responsibility 101 ABENGOA BIOENERGY GRI index Code Definition Indicator type Page Included in the report Social: Labor Practices and Decent Work Employment LA1 Total workforce by employment type, employment contract, and region, broken down by gender P 45 yes LA2 Total workforce by employment type, employment contract, and region, broken down by gender P 38 yes LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations A 47 yes P 47 yes P 47 yes P 47 yes A 43 yes P 43-44 parciality P 43-44 yes A 46 yes P 42-43 parciality A 42-43 parciality A 41-43 yes LA15 Return to work and retention rates after parental leave, by gender Labor/management relations LA4 LA5 Porcentaje de empleados cubiertos por un convenio colectivo Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements Occupational health and safety LA6 LA7 LA8 LA9 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious Health and safety topics covered in formal agreements with trade unions Training and education LA10 Average hours of training per year per employee by gender, and by employee category Programs for skills management and lifelong learning that support the LA11 continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career LA12 development reviews, by gender 2012 Corporate Social Responsibility 102 ABENGOA BIOENERGY GRI index Indicator type Page Included in the report P 79-80 parciality P 45-46 yes Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. P 51-52 yes HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken P 51-52 yes HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained A 46 yes P 46 yes P 46-47 yes P 39-40, 46-47 yes P 39-40 yes A 46 yes A 46 yes P 46 yes P 46 yes Code Definition Diversity and equal opportunity LA13 LA14 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation Social: Human Rights Investment and procurement practices HR1 Non-discrimination HR4 Total number of incidents of discrimination and corrective actions taken Freedom of association and collective bargaining HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights Child labor HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor Prevention of forced and compulsory labor HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor Security practices HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations Indigenous rights HR9 HR10 HR11 Total number of incidents of violations involving rights of indigenous people and actions taken Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments Number of grievances related to human rights filed, addressed and resolved through formal 2012 Corporate Social Responsibility 103 ABENGOA BIOENERGY GRI index Code Definition Indicator type Page Included in the report Social: Society Local communities SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs P 70-75 yes SO9 Operations with significant potential or actual negative impacts on local communities P 70-71 yes Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities P 70-71 yes P 74-75 yes P 44 yes P 74-75 yes SO10 Corruption SO2 SO3 SO4 Percentage and total number of business units analyzed for risks related to corruption Percentage of employees trained in organization's anti-corruption policies and procedures Actions taken in response to incidents of corruption. Public policy SO5 Actions taken in response to incidents of corruption P 36,74 yes SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country P 74 yes P 74 yes P 26 yes Anti-competitive behavior SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations Social: Product Responsibility Customer health and safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures P 26-27 yes PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes A 26 yes 2012 Corporate Social Responsibility 104 ABENGOA BIOENERGY GRI index Code Definition Indicator type Page Included in the report Social: Society Local communities SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs P 70-75 yes SO9 Operations with significant potential or actual negative impacts on local communities P 70-71 yes Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities P 70-71 yes P 74-75 yes P 44 yes P 74-75 yes SO10 Corruption SO2 SO3 SO4 Percentage and total number of business units analyzed for risks related to corruption Percentage of employees trained in organization's anti-corruption policies and procedures Actions taken in response to incidents of corruption. Public policy SO5 Actions taken in response to incidents of corruption P 36,74 yes SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country P 74 yes P 74 yes P 26 yes Anti-competitive behavior SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations Social: Product Responsibility Customer health and safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures P 26-27 yes PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes A 26 yes 2012 Corporate Social Responsibility 105 ABENGOA BIOENERGY GRI index Nº Indicador Tipo de Indicador Página Incluido en el informe P 26 yes A 26 yes A 48 yes P 74-75 yes A 74-75 yes P 26 yes Desempeño de responsabilidad del producto Etiquetado de productos y servicios PR3 Tipos de información sobre los productos y servicios que son requeridos por los procedimientos en vigor y la normativa, y porcentaje de productos y servicios sujetos a tales requerimientos informativos. PR4 Incumplimientos de la regulación y de los códigos voluntarios relativos a la información y al etiquetado de los productos y servicios, distribuidos en función del tipo de resultado de dichos incidentes. PR5 Prácticas con respecto a la satisfacción del cliente, incluyendo los resultados de los estudios de satisfacción del cliente. Comunicaciones de marketing PR6 Programas de cumplimiento de las leyes o adheyesón a estándares y códigos voluntarios mencionados en comunicaciones de marketing,incluidos la publicidad, otras actividades promocionales y los patrocinios. PR7 Incidentes de comunicación o marketing A Privacidad del cliente PR8 Reclamaciones en relación con el respeto a la privacidad y la fuga de datos personales de clientes. Cumplimiento normativo PR9 Multas yesgnificativas fruto del incumplimiento de la normativa en relación con el suministro y el uso de productos y servicios de la organización. 2012 Corporate Social Responsibility 106 ABENGOA BIOENERGY
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