abengoa bioenergy - Abengoa Bioenergía

Transcription

ABENGOA BIOENERGY
2010 Annual Report
Corporate Social Responsibility Report
Index
Letter from the Chairman ................................................................................................................................. 2
Our company ..................................................................................................................................................... 5
Company Profile ............................................................................................................................................... 6
Our Products ...................................................................................................................................................12
International Presence .....................................................................................................................................20
Key Figures .....................................................................................................................................................21
Policies and Management Model ..................................................................................................................23
Corporate Social Responsability Policies ..........................................................................................................24
Mission, Vision and Values ..............................................................................................................................24
Management Model ......................................................................................................................................25
Stakeholders ....................................................................................................................................................27
Communications Channels .............................................................................................................................28
Our Shareholders ............................................................................................................................................32
Our Employees ................................................................................................................................................33
Our Clients .....................................................................................................................................................42
Our Suppliers ..................................................................................................................................................43
Environment ....................................................................................................................................................47
Policies, Compromise and Objectives .............................................................................................................48
Main Environmental Indicators .......................................................................................................................49
Community ......................................................................................................................................................61
Policies, Strategy and Objectivess ....................................................................................................................62
Programes ......................................................................................................................................................63
Partnerships and Agreements ........................................................................................................................64
Transparency and Fight Against Corruption ....................................................................................................67
Economic Performance ..................................................................................................................................69
Creation of Value............................................................................................................................................70
Corporative Governance.................................................................................................................................72
Board of Directors ..........................................................................................................................................73
Board Committee ...........................................................................................................................................74
Risk Control Management .............................................................................................................................77
Additional Information ...................................................................................................................................82
CSR Report Principles and Scope ....................................................................................................................83
Independent Assurance Report on the 2010 Corporate Social Responsibility Report........................................91
Informe de revisión independiente sobre el diseño y aplicación efectiva del Sistema de Gestión de Riesgos ....96
GRI Index ..........................................................................................................................................................97
Should any discrepancies be found between the Spanish and the English version, the information contained on the Spanish
issue has prevalence over the English. The Spanish version can be found within the corporate webpage:
www.abengoabioenergy.com.
ABENGOA BIOENERGY
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2010 Corporate Social Responsibility Report
Letter from the Chairman
ABENGOA BIOENERGY
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Climate change is an unquestionable fact. The rise in temperatures, mainly caused by the continuous emissions
of greenhouse gases into the atmosphere, is causing an increasing loss of natural habitats and biodiversity, as
well as climatic catastrophes unprecedented in recent history. These emissions are largely caused by the use of
fossil fuels, non-renewable sources of energy that also contribute to atmospheric pollution and acid rain. In the
search for new sources of alternative energy for transport, biofuels are the main and most viable alternative to oil
derivatives, both in the short and medium term.
Abengoa Bioenergy currently has an installed biofuel production capacity of over 3,100 million liters, distributed
between fourteen plants in Europe and North and South America. The export volume has considerably increased,
currently including numerous countries from the Northern Hemisphere. Investment in R&D has increased with
respect to the previous year, maintaining the company’s commitment to new technologies to generate ecological
fuels and the commitment to sustainability in all activities and products.
This year we have achieved important milestones in all the geographic areas that the company operates in. The
production targets set have been reached and the marketing activities have been considerably increased in
accordance with the company’s strategic plan. R&D investments have given good results and the viability of
second generation biofuels is already a reality.
The company’s production capacity has significantly increased from the start of the year. If at that time we spoke
of the two new bioethanol plants in Indiana and Illinois that duplicated our production in the US, this year we
have started operations in one of the world’s largest bioethanol plants, at 480 ML, located in Europoort, in
Rotterdam. Due to its technical characteristics, production capacity and strategic location, this plant is vital for
the company’s aims of consolidating itself as Europe’s, and one of the world’s, main bioethanol traders and
producers. Likewise, operations have commenced at full capacity in Spain at the biodiesel plant in the province
of Cadiz. In Brazil, in the month of July, we have completed the expansion project which, likewise, almost
doubles sugar bioethanol production, increasing our weight in this country and our global potential.
Additionally, following the model of our European plants, electric cogeneration from sugar cane bagasse systems
have been added to the production plants, which further increases operation sustainability and the total output
of our activities.
For years, the company has devoted a large part of its resources to the analysis and increase of sustainability of all
activities performed and end products produced. Society and governments on a global level have started to act
in the same direction, which more than demonstrates that the path that Abengoa Bioenergy has taken in this
field is what other companies and industries must undertake in the immediate future. Sustainability, the
cornerstone of the company’s strategic plan, on which the entire range of activities and objectives in the short,
medium and long-term are based, has reached unprecedented global relevance. In Abengoa Bioenergy we can
see how sustainability drives our efforts in the different R&D projects on which we are working, such as second
generation bioethanol, the hybrid concept of cereal and biomass plants or biorefinery. The biomass plant project
on a commercial scale continues providing significant technological improvements, which we will soon be able to
put into the total production process, once we start building the hybrid plant in collaboration with the US
Department of Energy. This will be the largest commercial production plant of bioethanol from biomass to date.
Its risk management program has allowed it, against a decidedly complex economic backdrop, to maximize
generation of the cash flows required in order to fund the growth of technological development activities while
also supporting organic growth. This risk mitigation program, developed some years ago, has prevented the
company from being exposed to the extreme situations in which some of its competitors have found themselves
immersed.
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It is a fact that from 2011 on, with the approval of the Renewable Energy Directive (RED), a sustainability
certificate system will be implemented that will measure the impact of the production of this type of energies,
including biofuels. Abengoa Bioenergy has responded to the EU’s proposal to the renewable energy sector,
having presented the first Voluntary Standard which will come into force on 31 December 2010. This standard
establishes requirements to comply with RED criteria throughout the production chain, from agricultural
production until the end consumer, with a global geographic scope. In the US and Brazil, advances are also being
made in this field and there are similar initiatives that will soon provide the basis for a similar legislation.
Our future goals remain unchanged with respect to previous years, the sustainability of our products being the
main objective. The consolidation of production, marketing and research activities will be essential and it is still
present in the company’s strategic plan. The company will continue to devote the necessary resources to
performing all its activities following the best practices, optimizing all processes insofar as possible to cause the
minimum social and environmental impact.
Until now, we have gained critical mass with the commissioning of the new plants, consolidating ourselves as
one of the global biofuel players. We are going to use all of this potential and our outstanding position to
become even stronger, keeping our position as the leading company in the biofuel sector which we have
become. We will continue to provide society with sustainable solutions for climate change, offering our
ecological and renewable products. We are currently enjoying one of the best periods in the company’s history
and we are going to take advantage of this boost to increase our sales and exports, and optimize and consolidate
all our operations, within our strategic plan.
Abengoa Bioenergy has strengthened its commitment to social responsibility and human rights, through the
development and implementation of its sustainability policies and expanding this involvement and the
involvement of its customers and suppliers for sustainable global development. Likewise, this report has been
prepared in accordance with the principles of the GRI in its version G3 and AA1000 AS. The aim is to present to
stakeholders and the rest of society the company's performance and its targets for the coming years. Information
may be obtained and expanded upon via the established communication channels, and more directly on the
company's website: www.abengoabionergy.com.
Javier Salgado Leirado
Chairman and CEO of Abengoa Bioenergy
ABENGOA BIOENERGY
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Our Company
Our Company
ABENGOA BIOENERGY
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Our Company
Company Profile
Abengoa Bioenergy is a benchmark company in the development of new technologies geared towards the
production of biofuels 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.
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Our Company
Companies and Subsidiaries
In 2010 the business group included administration of the following companies:
Companies
United States
Spain
Abengoa Bioenergy Corporation
ABC Issuing Company, Inc.
Abengoa Bioenergy Biomass of Kansas, LLC
Abengoa Bioenergy Engineering & Construction, LLC
Abengoa Bioenergy Funding, LLC
Abengoa Bioenergy Hybrid of Kansas, 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 Operations, LLC
Abengoa Bioenergy Outsourcing, LLC
Abengoa Bioenergy Renewable Power US, LLC
Abengoa Bioenergy Technology Holding, LLC
Abengoa Bioenergy Trading U.S., LLC
Abengoa Bioenergy U.S. Holding, Inc.
Abengoa Bioenergía, S.A.
Abengoa Bioenergía Inversiones, S.A.
Abengoa Bioenergía Nuevas Tecnologías, S.A.
Abengoa Bioenergía San Roque, S.A.
Biocarburantes de Castilla y León, S.A.
Bioetanol Galicia Novas Tecnoloxias, S.A.
Bioetanol Galicia, S.A.
Ecoagrícola, S.A.
Ecocarburantes Españoles, S.A.
Europe
AB Bioenergy Hannover GmbH
Abengoa Bioenergy France, S.A.
Abengoa Bioenergy Germany GmbH
Abengoa Bioenergy Netherlands, B.V.
Abengoa Bioenergy Trading Europe, B.V.
Abengoa Bioenergy UK, Ltd
ASA Bioenergy Holding A,G
Brazil
Abengoa Bioenergia Brasil S.A.
Abengoa Bioenergia Agroindústria Ltda.
Abengoa Bioenergy’s activities cover five major areas:
“ Procurement of raw materials
“ Bioethanol sourcing
“ Production
“ Marketing of bioethanol, DGS and sugar
“ New Technologies
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Our Company
Procurement of Raw Materials
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 Bioenergy Brazil the company grows sugarcane while maintaining sustainable rural development
methods, biodiversity, and regional economic growth. Through the subsidiary company Abengoa Bioenergy
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.
Bioethanol Origination
Capacity for the bioethanol production, the commercial side of which is handled by the trading companies, is
complemented by their additional task in the field of sourcing third-party bioethanol to be added to the volumes
produced at the company's own plants, in order to provide greater flexibility, supply capacity and competitiveness
with regard to the customer portfolio.
Production
Bioethanol, is produced in plants in Europe and the US, and more recently in Brazil. Bioethanol is obtained from
cereal grain, through chemical processes and treatment, to produce either ETBE (a component of all types of
gasoline), or for direct blending with gasoline, obtaining biofuels, mainly e85 (a mixture of 15% gasoline and
85% bioethanol), but also as e10 (90% gasoline and 10% bioethanol). The DGS co-product is obtained during
the bioethanol production process. This is a compound with a high protein content resulting from the extraction
of the starch in cereals, and it is ideal for the production of animal feed.
The production of bioethanol from sugar cane also returns sugar as a co-product. This sugar is processed to make
it suitable for human consumption, and for further use in producing other food products.
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Our Company
Currently, Abengoa Bioenergy owes 14 bioethanol and DGS producing plants distributed throughout Europe, the
United States, and Brazil, which provide a total installed production capacity of 820 Mgal per year,
approximately. Additionally, the company also has two plants under construction or in project, in Europe and the
US.
Marketing of Bioethanol, DGS and Sugar
Abengoa Bioenergy has established offices in key places for global bioethanol trading, in Rotterdam, The
Netherlands, with immediate access to Europoort and exports; in St. Louis, USA, in the heart of the main cereal
production and cattle breeding area in the country; and in São Paulo, Brazil, the birthplace of the bioethanolfrom-sugarcane production. From all these Abengoa Bioenergy meets the demand for bioethanol, DGS, and
sugar from European, American, and Brazilian markets.
Market fluctuations, political conditions in the different geographical areas and other factors affecting company’s
activities, both in terms of acquisition of raw materials, and in production of marketed products, are carefully
analyzed from the global point of view, in order to obtain a better vision of global markets. Meticulous analysis
and risk management yield a greater performance of the production processes, always within the scope of
sustainable development, respecting the environment, human rights and the community, as one of its principles.
Abengoa Bioenergy offers its clients the option of selecting the solution that best meets their needs, providing
the necessary reliability and flexibility in the different bioethanol supplies carried out.
New Tecnologies
Abengoa Bioenergía aims to establish a leadership position in the Bioenergy industry and develop sustainable
solutions for the transport sector and biomass-derived bioproducts.
Our activities are focused on developing biofuel production technologies from lignocellulosic biomass, especially
bioethanol via enzymatic hydrolysis and gasification and catalytic synthesis of alcohols in the production of high
added value bioproducts.
For this purpose, we have pilot facilities (0.11 million galons per year capacity) in York (Nebraska, US), and
demonstration facilities (1.32 million galons per year capacity) in BCyL (Salamanca, Spain), biochemistry
laboratories in BCyL and Seville, and a laboratory with bench scale plants in the University of Seville for testing
and improving catalysts.
Furthermore, we are developing the first commercial project for second-generation ethanol production in
Hugoton (Kansas, US), which will have a capacity of 26,455,000 galons per year and that has received
considerable support from the US Department of Energy for its development.
In Europe, our activities are supported by European Commission aid within the framework programs (Abengoa
Bioenergía Nuevas Tecnologías is the sixteenth company that has received most support in the 7th Framework
Program), from the Government of Spain in several programs and from different local organizations.
This support demonstrates the quality of the company’s R&D programs, since they must be assessed by third
parties and the results obtained are excellent.
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Our Company
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, 2010 has been a year full
of successes.
Europe
The most significant milestones achieved in Europe during 2010 have been:
Start-up of a plant at the Europoort in Rotterdam, the Netherlands, capable of producing 127 Mgal (480 ML)
of bioethanol and 360,000 t of DGS per year.
Operaciones en la planta de biomasa de Babilafuente, Salamanca, permitiendo mejoras de procedimientos de
producción e identificación de nuevas enzimas.
Production of 210 Mgal of bioethanol.
Production of 600,000 t of DGS (corn, wheat and barley).
Purchases of 2,900 t of biomass (wheat straw) for the BCyL bioethanol plant.
Start-up of the grain intake system from the jetty, including the 600 m conveyor belt of Abengoa Bioenergy
Netherlands in Europoort.
Promotion and expansion of the networks of direct blending biofuels (e5, e10 and e85) service stations, with
30 supply points and 198,000 gallons distributed.
Modification of the loading bays in the CLH logistical system (dedicated to storage, transportation and
distribution of fuels) that makes it possible to make gasoline and bioethanol blends.
Sourcing of more than 40 Mgal of bioethanol from third parties.
Start-up of the Lignocellulosic Ethanol Demonstration (LED) project, funded by the European Commission and
developed by a consortium of five companies from four different countries headed by Abengoa Bioenergy.
€13.6 M subsidy granted by the Spanish Ministry for Science and Innovation as part of the CENIT program for
the Sustainable Biorefinery Project.
Involvement in the incorporation of the new ePure European renewable ethanol association.
265 Mgal of bioethanol distributed in the European market, an increase of 21% compared to 2009.
Consolidation of the bioethanol exports pool, managing a volume of 142 Mgal, 43% above the volume of
the 2009 pool.
Implementation of procedures for the acquisition of raw material (cereals and vegetable oils) certified
according to the sustainability requirements established in the Renewable Energy Directive.
Supply of the first quantities of certified cereal to the bioethanol plants.
100% bioethanol deliveries providing the sustainability certification according to the proprietary system
developed by Abengoa Bioenergía as per the legal requirements in force and the contractual conditions of
our clients during 2010.
Staging of the IX World Biofuels Conference.
Abengoa Bioenergía San Roque secures ISO 9001, ISO 14001 and OHSAS 18001 certification.
ABENGOA BIOENERGY
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Our Company
United States
For Abengoa Bioenergía, this has been a year of consolidation and growth in the United States. During 2010, the
company reached the following achievements in the United States market:
Commissioning with total loading of a plant in Mount Vernon, Indiana, capable of producing 88 Mgal (335
ML) of bioethanol and 230,000 t of DGS per year.
Commissioning with total loading of a plant in Madison, Illinois, capable of producing 88 Mgal (335 ML) of
bioethanol and 230,000 t of DGS per year.
Lease of a new 2.6 Mgal (10 ML) capacity storage terminal in Houston by Abengoa Bioenergy Trading US.
Abengoa Bioenergy initiates ethanol and DGS export activity by barge along the Mississippi and Ohio rivers.
Implementation of the STOP program, resulting in improvements to on-site work safety and staff
performance.
Southwestern Illinois award presented to Abengoa Bioenergy of Illinois.
Economic development award (EDIE) presented to Abengoa Bioenergy of Illinois.
Abengoa Bioenergy Operations receives the Chemical Safety Excellence Award for the second year running.
Finalización de la auditoría ISO inicial de las sociedades Abengoa Bioenergy of Illinois, Abengoa Bioenergy of
Indiana y Abengoa Bioenergy Trading US.
Environmental Protection Agency (EPA) approved 15% ethanol blends (E15)
Producción de 326 Mgal de bioetanol.
Producción y venta de 825,000 t de DGS.
Brazil
Commencement of operations of two cogeneration plants in Brazil, the São João and São Luiz plants, with a
total installed capacity of 140 MW.
Expansion of the production capacity of sugar and ethanol of the São João plant in Brazil in more than 50%.
Previously, ethanol production reached 13 Mgal per year and it currently exceeds 34 Mgal per year.
Incorporation of Abengoa Bioenergía Trading Brasil for the specific management of the marketing of
bioethanol and sugar produced in Brazil.
Production of 41 Mgal of bioethanol.
Production and sale of 352,000 t of sugar.
Organization of the first Environment Week (in Spanish, SIMA) in Brazil.
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Our Company
Our Products
Our products are the result of the fermentation of the sugars in organic matter and supply various energy and
food markets. Practically all our products are sold in bulk (except for the sugar sold in Brazil) and are distributed
to their final destination in containers and tankers, maintained and monitored in accordance with the most
rigorous inspections, including certificates demonstrating compliance with the applicable goods and
environmental regulations. Containers are reused almost entirely for subsequent deliveries, thereby eliminating
the need for recycling and the consumption of materials, while increasing their sustainability and extending their
life cycle.
Main Products
Bioethanol
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 Bioenergy Brazil 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. Its main advantages compared to fossil fuels are the following:
Renewable origin.
Biodegradable.
Higher dependency 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.
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Our Company
Biodiesel
Biodiesel is a renewable fuel formed by long-chain fatty acid methyl or ethyl esters. If the esters making up diesel
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, in
relation to diesel derived from oil, 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 clean source of fuel, renewable and for household use.
It helps reduce dependence on oil.
It can be used in all diesel engine vehicles, without any conversion, adjustment or special modification
needed.
It is easy to produce and store.
It emits between 40% and 80% less GHG than fossil fuels.
It increases engine lubricity and the fire point, the risk of explosion due to gas emissions being reduced
It is biodegradable and non-toxic.
It improves the air quality in urban areas.
It does not pollute water.
It reduces the production of waste.
The production of biodiesel creates new opportunities for sustainable rural development within the framework of
a farming policy more directed at the market, since it promotes the development of energy crops and the
creation of farming industries, helping maintain employment and income standards in the rural world.
DGS
DGS or Distillers Grains Solubles is the co-product resulting from obtaining bioethanol by converting cereals
starch through fermentation into bioethanol and its subsequent extraction through distillation. The
abovementioned co-product is a source of vegetable protein, energy, fiber and vitamins, used as animal feed.
Aware of its implications, the DGS undergoes strict quality controls that guarantee both its nutritional properties
and those derived from enforcing current Food Safety legislation. As a result of this, Bureau Veritas certified DGS
against an internal reference, covering all food quality and safety requirements in force in Europe. Work is also
being conducted to obtain a European specification for the product.
Sugar
Abengoa Bioenergia Brasil obtains sugar from sugar cane grinding. 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. Currently,
Abengoa Bioenergy Brazil has an estimated 645,000 t of crystal sugar production destined to export and trade in
the domestic market.
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Our Company
Electricity
The set-up at a number of processing plants involves cogeneration units, making them self-sufficient in terms of
electricity and also allowing them to export their surplus. This is the case at the plants in Spain, which have a total
installed power of 70 MW.
The electricity is generated using natural gas turbines. This electricity serves on a marginal basis to substitute
electrical generation at coal and oil-fired power stations.
A similar situation will apply at the new facilities in the Netherlands. Abengoa Bioenergia Brasil also generates
electricity by burning the bagasse obtained from sugarcane milling. This then feeds the boilers which generate
steam for process use and electricity generation.
Two bagasse-fired cogeneration units are currently under construction, with a capacity of 70 MW each, capable
of being expanded up to 140 MW. In this case the emissions associated with combustion are nil, since they will
again be captured during the process of growing the sugarcane, thereby producing clean, renewable energy.
New Technologies
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, Gasification and
Catalysis, Enzymes, Bioproducts, Algae and Sustainability
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.
ABENGOA BIOENERGY
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Our Company
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 2010 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 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.
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Our Company
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.
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
ABENGOA BIOENERGY
16
Our Company
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.
Bioenergy Sustainability Standard
The Renewable Energy Directive (RED) establishes sustainability criteria for biofuel production, which will be
compulsory from December 2010. This sustainability regime obliges economic operators to:
Check that the production areas of raw materials are not located in protected areas.
That the biofuel has a savings of Greenhouse Gas (GHG) emissions above pre-established thresholds.
That the information associated to the biofuel can be traced to the raw material it came from, by a Mass
Balance System.
Abengoa Bioenergy has decided to enhance the initiatives that it has been promoting in recent years in the area
of sustainability, by the development and implementation of a Voluntary Scheme whereby it can demonstrate
compliance with the RED sustainability requirements in its biofuel production and distribution operations in
Europe.
The RED Bioenergy Sustainability Assurance scheme (hereinafter RBSA standard) thus becomes a powerful tool
for making compliance with all RED requirements more flexible, so that once approved by the European
Commission (EC), all Member States must recognize a biofuel produced under this standard, irrespective of its
transposed domestic developments.
Standard RBSA establishes requirements for compliance with the RED criteria throughout the production chain,
from agricultural production to the end consumer with a global geographic scope.
Among other innovative aspects, the Standard includes two specific developments, in order to facilitate the
operation to the suppliers:
The development of technological systems to calculate GHG emissions (in particular agricultural operations)
from the geographically averaged values.
The development of sustainable maps, which make it possible to qualify a region determined as sustainable
under RED.
ABENGOA BIOENERGY
17
Our Company
The RBSA standard is currently (February 2011) being evaluated by the EC. The procedures and main systems
stipulated in the Standard are already operative in the Abengoa Bioenergy’s European companies.
Biofuel sustainability
Abengoa Bioenergy’s strategy in relation to climate change is described in its mission and vision, where it
establishes as fundamental objective of its operations the ‚contribution to the sustainable development of the
fuel market for transport by the use of renewable energy and technologies that respect the environment and
reduce carbon emissions‛.
This commitment to innovative technological solutions that mitigate the effects of climate change is mainly based
on reducing Greenhouse Gases (GHG), which the use of biofuels makes possible to achieve in comparison with
the use of fossil fuels.
Bioethanol generated from cereals produced by Abengoa Bioenergy generates savings in GHG emissions around
35-65 % based on the Lifecycle Analysis developed following the criteria established in the Directive for the
Promotion of Renewable Energies (Directive 28/2009/EC). This value could reach up to 75 % in the case of
bioethanol produced in Brazil from sugar cane.
In the case of bioethanol produced from cellulosic biomass, the emissions savings will be even greater. In both
cases, the production of these biofuels will entail a saving in fossil fuel.
Note: similar figures in terms of emissions and fossil energy savings are obtained in biodiesel production.
But this fight by Abengoa Bioenergy against the effect of climate change would not be complete if it is not
tackled from the respect, preserving the basic pillars of sustainability, both in the current situation, which is
determined by the production of conventional biofuels from cereals and oleaginous seeds (so-called ‚first
generation‛), and in the company’s foreseeable development outlook, which will be marked by the technological
coming of age of ‚second generation‛ biofuels. Below, we indicate how tackling climate change from a
sustainability standpoint makes it possible to reduce the possible negative incidence in the areas indicated in the
question.
From an environmental perspective (ecological), in addition to the mentioned GHG emission reduction, the supply
of raw material in Abengoa Bioenergy’s operations mainly comes from consolidated agricultural suppliers, who
observe good agricultural practices (such as, for example, those regulated in Europe through the Common
Agricultural Policy), covering from reduction of water pollution, to soils or the atmosphere, up to the good
treatment of animals or the efficient use of fertilizers to cite just a few.
Abengoa Bioenergy requires its raw material suppliers to guarantee the source of agricultural production, which
in addition to allowing its control makes it possible to calculate the GHG emissions associated to its supplies.
These data will make it possible in the future to discriminate suppliers depending on their better environmental
behavior.
From a social perspective, Abengoa Bioenergy requests all its suppliers to comply with a Social Responsibility
Code (based on the ten principles of The Global Compact) promoting the adoption in its supply chain of good
social practices, including respect for labor rights, equal treatment, no slavery, etc.
ABENGOA BIOENERGY
18
Our Company
And from an economic perspective, the use of biofuels involves a general reduction in foreign energy
dependence, in addition to local support for the sectors of agricultural protection and technological development
in the communities where it operates. This gives a strong boost to its economic activity and, ultimately,
stabilization of employment and social wellbeing.
In short, the leitmotiv that marks Abengoa Bioenergy’s strategy is its commitment to technology as a solution to
the remains of climate change in the transport sector, the following being the main aspects of this strategy:
Its products (bioethanol and biodiesel) allow a considerable reduction of GHG emissions and fossil fuel
consumption, being a viable alternative to fossil fuels in the transport sector for reduction of GHG emissions.
This strategy is aimed from the respect held for the pillars of sustainability in all its operations, both current
and future, no transitory solutions are acceptable.
The use of raw materials from consolidated suppliers that respect good agricultural practices (ecological
impact), the promotion of social aspects through adhesion to the Code of Social Responsibility and the
reduction of foreign energy dependency and promotion of the local production fabric in sectors as necessary
as agriculture or technological research, which provide its products (economic impact); make it possible to
reduce any potential negative incidents associated to first-generation fuels generated by Abengoa Bioenergy.
The second generation biofuels will inherit and maintain this respect to sustainability in the fight against
climate change.
ABENGOA BIOENERGY
19
Our Company
Global Presence
Abengoa Bioenergy is Europe’s largest biofuel producer (400 Mgal production capacity), and one of the largest in
the US (370 Mgal), and Brasil (50 Mgal), with a total of 820 Mgal production installed capacity annually,
distributed among 14 plants, in five different countries from three different continents.
Abengoa Bioenergy, present in seven countries on three different continents, currently has 13 plants producing
bioethanol and other byproducts derived from the process, and one biodiesel production plant, in Europe (Spain
and France, and the Netherlands from 2010 onwards), North America (the USA) and South America (Brazil). They
supply the needs generated on global bioethanol markets practically anywhere in the world, wherever demand
arises. Most sales are made in the countries where production currently takes place, along with Sweden.
ABENGOA BIOENERGY
20
Our Company
Key Figures
1,575.2 M€
Income
1500
Abengoa Bioenergy’s income has increased significantly
mainly due to the operations startup of the plants in Indiana,
Illinois and Rotterdam, the expansion of the plant in São João
and São Luiz, and the greater volume of marketing and
trading activities.
(1M = 1,000,000)
1000
1,575
500
830
1,010
0
2008
EBITDA
250
By means of geographical and raw materials diversification and
in spite of the world economic crisis, our risks management
policy, and the successful operation of our assets, Abengoa
Bioenergy has been able to obtain an EBITDA over 212 M€.
2009
2010
212 M€
200
150
212,0
100
50
131,5
90,7
0
2008
2009
2010
29.5 M€
Technological Investment
Along with the US DOE (Department of Energy), the Spanish
Ministry of Industry and, the 7th European Union Framework,
Abengoa Bioenergy further advances towards the
commercialization of cellulosic ethanol, and the development
of new technologies.
30
20
10
21.4
25.5
29.5
0
2008
ABENGOA BIOENERGY
21
2009
2010
Our Company
GHG Emissions Reduction
2.64 Mt CO2-eq
3
The use of over 600 Mgal of bioethanol traded by Abengoa
Bioenergy reduces CO2-equivalent emissions by
approximately 2.64 Mt, equivalent to the annual emissions
of approximately 700,000 vehicles.
2
(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.
2.64
1
1.45
1.82
0
2008
1.000
Installed Capacity
2009
2010
820 Mgal/y = 3,140 ML/y
800
Our capacity to produce biofuels soars to 820 Mgal total
per year, distributed through Europe, USA, and Brazil
New Technologies biomass plants not included), after the
operations startup in the new plant located in
Rotterdam, and the consolidation of the operations in
Brazil.
600
200
(1 Mgal/y = 1 million gallons per year)
(1 Ml/y = 1 million liters per year)
820
400
675
450
0
2008
Training
2009
2010
206,100 h
200
150
X 1000
One of the biggest assets of the business unit is its
employees. For this reason, the company applies a great
effort to assure their professional and personal development.
This year the employees received a total of 206,100 hours of
training.
100
196
206
2009
2010
136
50
0
2008
ABENGOA BIOENERGY
22
Stakeholders
Policies and Management Model
ABENGOA BIOENERGY
23
Stakeholders
Policies 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, Vision and Values
Mission
Contribute to the sustainable development of the transportation fuel and the biochemical products
market through the use of renewable energy (biofuels) and green technologies which reduce carbon
emissions.
Development of innovative technological solutions through ongoing investment in R&D to make
production
processes more efficient and to create unique, high-value animal feed byproducts.
Creation of shareholder value.
Contribution to the personal and professional development of our employees through ongoing training
and the
establishment and monitoring of individual development plans and goals.
ABENGOA BIOENERGY
24
Stakeholders
Vision
Be one of the flagship companies worldwide in the production and sale of bioethanol from renewable
sources.
Be recognized as a leading global company in research and development, famed for technological
innovation in the conversion of biomass into bioethanol.
Provide an optimum working environment in order to attract the best possible employees and maintain
excellence in
our activities.
Attract the interest and respect of the financial community through sustained growth and technological
innovation.
Values
Honesty in relationships with clients, shareholders, associates and co-workers.
Respect for all people under all circumstances.
Focus on teamwork by utilizing corporate tools that favor the sharing of information.
Promote flexibility and mental attitude necessary 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.
ABENGOA BIOENERGY
25
Stakeholders
These planks are based on a management model defined by Abengoa and have three aspects:
Corporate Social Responsibility (CSR), which has become a central factor in measuring the future
performance of companies and ensuring the ongoing viability of their operations. CSR entails
understanding that results improve to the extent that companies are able to forge relationships of trust
with their stakeholders. In this regard, Abengoa is unflinchingly committed to developing a sound CSR
policy capable of permeating all levels of the organization and which is taken on board during the
strategic planning process..
Managerial transparency and rigor. Professional integrity, legality and rigor are some of the core aspects
underpinning the company, and are expressly envisaged in its list of values. In fact, these values can be
seen as an intrinsic part of Abengoa’s identity, for the company is fully aware that an organization can
only truly flourish if it embraces these ideals.
Championing the culture of enterprise. Abengoa invests heavily in innovation in order to adapt to the
changing world in which we live, even though this entails assuming inherent risks, seeing as though the
company is convinced that the greatest risk is not assuming any risk at all. Guided by this approach, it is
essential for each and every member of the company to embrace the enterprise culture and to be ready
to pursue and grasp new opportunities for improving their work as these arise.
ABENGOA BIOENERGY
26
Stakeholders
Stakeholders
ABENGOA BIOENERGY
27
Stakeholders
Stakeholders
Communication Channels
Abengoa Bioenergy is aware of the importance for its business and its growth of all those stakeholders with
which it has a relationship. For this reason, in addition to providing them with constant, transparent and accurate
information about the activities it pursues, the company attempts to foster dialogue with all such parties through
various communication channels suited to the specific characteristics of each group, while also developing new
channels in response to what must be a dynamic process enriching both parties.
Dialogue, understood as a process of listening and communication, is essential in order to achieve the integration
of expectations of stakeholders within the company's strategy.
Abengoa's main stakeholders are our employees, our customers, our suppliers, our shareholders and society at
large. Abengoa Bioenergy's commitment to each of these is based on the constant, straightforward and direct
dialogue, which the company has been fostering and encouraging for years.
ABENGOA BIOENERGY
28
Stakeholders
In order to develop and promote a process enjoying a stable balance, Abengoa has channels in place for
communication and listening, in accordance with the needs and expectations of each of the aforementioned
stakeholders. The most significant are listed in the table below:
Communication Channels (I)
Shareholders
Company dialogue channels with the
stakeholders
Dialogue channels of the
stakeholders to the company
Bioenergy Website
Public presentations
World Bioefuels Conferences
External whistleblower channel.
Press campaign advertising biofuel defense
Participation in APPA
Telephone
E-mail
Post
Annual Report
Press releases
Employees
Customers
Abengoa and Abengoa Bioenergy websites
Intranet: Connect@
Intranet: Connect@
Suggestion box
Employee portal
Employee self-service
Employee self-service
People Center
Welcome manual
IRP (problem solving)
People Center
AM (improvement actions)
Internal bulletin
Campus Abengoa (e-learning)
Safety and Health Committee
Human resources liaison (GIRH)
Company Committee
Safety and Health Committee
Human resources liaison (GIRH)
Company Committee
Campus Abengoa (e-learning)
Mailing
Internal whistleblower channel.
Annual Report
Work climate and satisfaction surveys
Customer visits to plants
Satisfaction surveys
Attendance of promotional events organized by both parties
Periodic meetings
Advertising Campaign supporting the biofuels
Scheduled conferences
Post
Annual Report
ABENGOA BIOENERGY
29
Stakeholders
Communication Channels (II)
Suppliers
Company dialogue channels with the
stakeholders
Dialogue channels of the
stakeholders to the company
Security Management System tool.
Supplier audits
Security Management System tool.
Supplier portal
Procedures to receive information and opinion from
the suppliers
Procedures to mesure the
External whistleblower channel.
Bioenergy Purchases Department
Society
Annual Report
Visits to production plants: universities, institutes, residents
Fairs,
Forums
and Conferencies
Visits to
production
plants: universities, institutes,
residents
E-mails
E-mails
Press Releases
Fairs, Forums and Conferencies
Community
Public Presentations
Annual Report
Press Releases
For Abengoa, the dialog channels listed above constitute an ideal instrument for ensuring the mutual exchange
of information with stakeholders. In 2010, the company developed two new communication tools for its
stakeholders to directly express their opinions to the company: The external whistleblower channel, which serves
as a vehicle to report any potential irregularities, incidents involving non-compliance or conduct that violates the
ethics, legality and norms governing the company; and the opinion survey, which is a companion to the online
edition of this report, and enables readers of this document to bring to the attention of the company their
opinion on the contents treated herein.
Some of the dialog channels Abengoa makes available to its stakeholders are managed directly by the heads of
the departments involved through their customary ongoing stakeholder rapport. However, the ultimate aim is for
all opinions, suggestions, considerations and complaints received on a daily basis by Abengoa interlocutors to
have a bearing on company strategy. Therefore, all information is carefully analyzed, and the conclusions reached
are addressed throughout the organization.
ABENGOA BIOENERGY
30
Stakeholders
Operational Structure of the Organization
Abengoa Bioenergía
President: Javier Salgado Leirado
United States
Europe
Brazil
Abengoa Bioenergía
Abengoa Bioenergia Brasil
Abengoa Bioenergy Engineering &
Construction
Abengoa Bioenergía San Roque
Abengoa Bioenergia Agroindústria
Abengoa Bioenergy of Illinois
Abengoa Bioenergy of Nebraska
Abengoa Bioenergy Netherlands
Abengoa Bioenergy Trading
Europe
Abengoa Bioenergy Outsourcing
Abengoa Bioenergy UK
Abengoa Bioenergy Trading US
Biocarburantes de Castilla y León
Abengoa Bioenergy of Indiana
New Technologies
Abengoa Bioenergía Nuevas
Tecnologías
Abengoa Bioenergy New
Technologies
Abengoa Bioenergy France
Abengoa Bioenergy Biomass of
Kansas
Bioetanol Galicia
Ecoagrícola
Ecocarburantes Españoles
Changes in Size, Structure and Ownership during 2010
(For a complete list of companies please refer to Annexes I and IV of Volume 2, Legal, Economic and Financial
Report, 2010)
Changes in Size, Structure and Ownership
Company
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Abengoa
Bioenergía Agrícola Ltda.
Bioenergía Agroindustria Ltda.
Bioenergía Centro-Oeste, Ltda
Bioenergía Centro-Sul, Ltda
Bioenergía Cogeração, S.A.
Bioenergía Brasil
Bioenergía Santa Fe, Ltda.
Bioenergía São João, Ltda.
Bioenergía São Luiz, Ltda.
Bioenergía Brasil, Ltda.
Bioenergia Trading Brasil Ltda.
Bioenergy Meramec Renewable, Inc.
ABENGOA BIOENERGY
31
2009
2010
100,00%
100,00%
100,00%
99,97%
99,99%
100,00%
100,00%
99,99%
99,00%
100,00%
100,00%
99,99%
100,00%
100,00%
83,81%
Stakeholders
Our Shareholders
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 Estructure
The shareholding structure of Abengoa Bioenergía, S.A. was at December 31, 2010 as follows:
Shareholding Structure
Abengoa, S.A.
80.58%
Sociedad Inversora en Energía y Medio Ambiente, S.A.
16.72%
Other
ABENGOA BIOENERGY
2.7%
32
Stakeholders
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. 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 2010 Abengoa Bioenergy had an average workforce of 5,187, distributed across the three geographical areas
where the company operates: the United States, Europe and Brazil. Average staff turnover was 0.55%.
Staff Composition
%
Total
13%
591
9%
429
78%
3,679
Europe
0.34%
2
United Stated
3.96%
17
Brazil
0.19%
7
Employees
31%
1,470
Operators
69%
3,229
Geographical Area
Europe
United Stated
Brazil
Turnover
Contract Type
Position
Male
Female
Total
Executives
Managers
Engineers and Graduates
Assistants and Professionals
Operators
84
345
191
471
2,987
5
56
87
157
316
89
401
278
628
3,303
4,078
621
4,699
Total
ABENGOA BIOENERGY
33
Stakeholders
Universal Principles
Abengoa Bioenergy undertakes in its working practice, and demands in the professional actions of its employees,
compliance with the UN Universal Declaration of Human Rights and the corresponding protocols, along with the
international conventions approved by that body and by the International Labor Organization (ILO) regarding
social rights (in specific terms, the UN Convention on the Rights of the Child, the UN Convention on the
Elimination of All Forms of Discrimination against Women, along with all specific instruments regarding child
labor, forced labor, health and safety at work, freedom of association, discrimination, disciplinary practices,
working hours and remuneration). It likewise abides by the Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy of the ILO, and the OECD's Guidelines for Multinational
Enterprises.
Abengoa Bioenergy maintains a policy of recruiting, hiring, training and promoting the most qualified individuals,
irrespective of their race, religion, color, age, gender, civil status, sexual orientation, national origin, physical or
mental disability, and expressly and actively rejects any form of discrimination. In accordance with the social
responsibility commitments entered into through its adhesion to the UN Global Compact and through its own
Code of Conduct, Abengoa Bioenergy is currently developing a social responsibility management system in
accordance with the international model SA 8000, guaranteeing continuous improvements in the company's
social performance.
Abengoa Bioenergy is committed to a model of Corporate Social Responsibility whose policy is based, among
other aspects, on equal conditions and opportunities irrespective of gender, religion, origin, age, etc. With the
CSR policy it includes the Equality Master Plan through which it actively rejects all type of discrimination, direct or
indirect, due to reasons of sex and actively promotes equal opportunities of treatment between women and men.
Therefore, Abengoa Bioenergy safeguards and promotes equality between men and women, applying this
principle in all its human resources policies, such as recruitment, selection, training, performance measurement,
promotion, remuneration, working conditions, balance between family and working life, communication and
prevention of harassment.
In another order of things, but no less important, its policy also ensures that the conditions for the balance
between personal and working life are created. Likewise, it ensures the mechanisms to guarantee compliance
with the social and labor law in force in each country, including the commitments acquired through sector or
territorial collective agreements or the company’s own agreements signed with the workers or their
representatives.
Furthermore, within the Corporate Social Responsibility Policy, Abengoa Bioenergy offers its workers a
communication system with total guarantee of confidentiality to report any type of situation that could be
classified as harassment, when there is evidence of discriminatory situations.
Additionally, in accordance with the occupational safety and health policy and the Common Management
Standards, occupational safety and health committees have been established, formed by the company
management, the managers from each area and the technicians from the occupational safety and health service.
ABENGOA BIOENERGY
34
Stakeholders
Professional Development
The environment in which any company currently intervenes has characteristics and peculiarities defined by a
constant evolution and change that makes it necessary to intensify competences for its development. Abengoa
Bioenergy, in order to mark the difference, considers it a priority to make said competence into one of the
determining parameters to guarantee in all cases, innovation, flexibility and reactivity.
The Competence Management Model, as Human Resources Management model of Abengoa Bioenergy,
responds to the company’s needs to generate value and clearly competitive advantages through people, a
competitive advantage that it is hard to imitate; its employees, therefore, being one of its most important assets
in maintaining a market leadership trend, which makes attraction, creation and retention of talent top priority. Its
whole selection process, whether internal or external, is also based on said Model.
Therefore, Abengoa Bioenergy considers training to be a systematic and ongoing process through which it aims
to develop, enrich, enhance or modify the conceptual, attitude and procedural competencies of our employees
through training actions. From the standpoint of Competencies Management, training is designed to improve
technical and generic competencies of people at work through enriching knowledge, developing competences
and skills and improving capabilities. The excellent performance of an organization requires ongoing training and
updating. Therefore, Abengoa Bioenergy is making an enormous effort to devote resources to qualifying its staff
in the different areas where this is necessary.
Finally, Abengoa Bioenergy always behaves in these management processes 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, the effective
abolition of child labor and, finally, the elimination of all discrimination as regards 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.
Once of the most important assets of the business group is its employees. For this reason, it makes a great effort
to guarantee both their professional and personal development. To achieve this it has implemented ambition
training plans in accordance with the current competencies plan. The program carried out in Abengoa Bioenergy
is structured in five segments, depending on the nature of the content offers and the desired results:
Corporate training, which transmits corporate culture; company values and principles, and
management system. It also covers key aspects of company strategy; understanding of risks and business,
and the vision of leadership.
General training, aimed at employees’ professional enhancement in any discipline related to their
position, mission, function, and duties.
Training in occupational risk prevention, based on health and safety standards in the workplace and
the use of protective elements.
Languages, as a key component in Abengoa’s model of ongoing international growth.
Professional practices, carried out through the company’s grant program.
Detection of training requirements is a process which very actively involves both the professionals receiving the
training and their line managers. Of particular importance in this process is the People Center, an integrated,
multi-language and universal computerized management system which deals with all human resources processes
simultaneously, including training.
ABENGOA BIOENERGY
35
Stakeholders
Professional Programs
Abengoa Bioenergía, en su modelo de desarrollo profesional, ha diseñado un conjunto de itinerarios
As part of its professional development model Abengoa Bioenergy has devised a set of professional pathways,
based in turn on training pathways, with the aim of shaping professionals highly qualified in key business
disciplines, and aligned with its corporate culture and best market practice. The following programs are currently
being implemented: Project Director Program and Project Manager Program.
Management Development Program
Aside from these specific career paths, Abengoa Bioenergy requires a program for key individuals allowing it to
guarantee a highly skilled team capable of undertaking strategic challenges at any given time, to which end it has
implemented an Executives Plan. Employees receive specific training allowing them to expand their management
skills and abilities. This program corresponds to a twofold need: to identify potential executives and to develop
the management talent of the leaders of tomorrow.
The Potential Executives Program believes that in order to create executives one must make the role attractive,
make such positions available to the most able and those who achieve the levels of attitude, skill and ability in
order to perform with excellence in such tasks.
The goals set for 2010 were surpassed, with complete and balanced training programs being delivered in
accordance with the company's strategic aims, and with a clear impact on corporate commitment to the
environment, social responsibility, sustainable development and human rights. Constant attention is paid to
information and training on serious illnesses, for employees and their surrounding family. The fight against stress
in the workplace is one of the cornerstones of our training program.
Over the course of 2010, the company's medical service provided practical recommendations on avoiding Type A
(H1N1) flu. In accordance with the varying impact of different illnesses, talks and seminars have been staged in a
number of countries dealing with acute respiratory illnesses, parasitosis, hypercholesterolemia and HIV. A number
of workshops have also been established to raise awareness about the consequences of the emotional and
mental stress caused by various factors: professional, personal and family.
Abengoa Bioenergy has an executive development program and a specific system to assess their performance
based on the 360º methodology. In 2010, more than 20 company professionals are participating in the program.
Furthermore, the company has a competencies management model in its companies that enables the integration
of people with the strategic objectives of each one of them, of the annual assessment of their performance and
their development. In 2010, 17.94% of employees were taking part in a performance assessment program.
ABENGOA BIOENERGY
36
Stakeholders
Future Goals and Objectives
Manager Training Program. In 2011, 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.
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.
Abengoa Bioenergy works non-stop in Safety and Health issues to guarantee the best conditions in the
performance of their work. 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 the group assigns safety and
health training to each one of its employees in order to adapt the behavior and strengthen respect and
knowledge of the safety and health rules and their application.
Training
Training
Language
Corporate
Occupational Safety and Health
General
Professional Practices
Total
Participants
Hours
354
21,397
34,932
15,017
59
13,081
25,538
76,217
69,633
21,630
71,759
206,099
Professional practices include employee bursaries. The average number of hours' training delivered per individual
in 2010 was 43.86.
During 2010 the total percentage of absenteeism at Abengoa Bioenergy (disciplinary, illness, accident and both
justified and unjustified absence) was 3.48%. Absenteeism as a result of common illnesses was 1.55%, and as a
result of occupational accidents 0.13%. Levels of occupational accidents at Abengoa Bioenergy are extremely
low in comparison with the data for related sectors, and bearing in mind the company's activities: the incidence
rate is 62.27 (number of accidents involving time off work out of the average workforce); serious accidents stand
at a level of practically 0.23 (number of days lost per thousand hours worked).
ABENGOA BIOENERGY
37
Stakeholders
No specific training courses were delivered during the period in the field of anti-corruption policy and procedures
at the organization. Training courses did, however, deal with the company's Common Management Systems,
including presentations on specific procedures for corruption risk management and for the establishment of anticorruption policies at companies.
Through its training actions dealing with the company's Mandatory Compliance Standards, Abengoa Bioenergy is
engaged in courses addressing all employees on which they receive training about the Abengoa Professional
Code of Conduct, updating and disseminating behavioral values, with a specific focus on the company's anticorruption policies The Human Resources Standard (04-005) includes the aforementioned Code of Conduct
There is a computer application based on these Common Management Systems which can be consulted by all
users at any time, providing greater information in the field of the organization's anti-corruption procedures.
The Abengoa Professional Code of Conduct may also be consulted via the intranet, available to all employees,
and also on the company's public website. The entire organization is informed of all changes to the code without
exception and without delay.
Abengoa Bioenergy had a total of 4,699 employees (31-Dec-2010), of which 4,002 had permanent contracts and
697 had temporary 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.
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.
Throughout 2010, no incident of discrimination has been registered through Abengoa Bioenergy’s information
channels. Neither have episodes related to violation of the rights of indigenous people been observed
ABENGOA BIOENERGY
38
Stakeholders
Salaries (€)
Minimum
Wage
Graduate
(%)
Administrative
(%)
Operator
(%)
265
633
1,152
1,303
943
194%
315%
174%
192%
340%
188%
162%
155%
123%
201%
152%
149%
135%
143%
176%
Brazil
Spain
France
Holanda
United States
Note: the Minimum salary data of the USA have been calculated bearing in mind a sample of states where
Abengoa Bioenergy is present. * The data from Brazil and the USA have been calculated in 12 payments. The
data of Spain, France and the Netherlands have been calculated based on 14 payments.
Local Executives
Executives
Total
Local
%
Europe
31
29
94%
United States
Brazil
24
35
23
26
96%
74%
Total
90
78
87%
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.
ABENGOA BIOENERGY
39
Stakeholders
Code of Conduct
Abengoa Bioenergy is, as a subsidiary of Abengoa, governed by the same Code of Conduct as its parent
company (see http://www.abengoabioenergy.com). The principles of this code are based on:
The highest standards of decency, integrity and sound judgment on the part of employees, executives
and company directors.
Full, fair, accurate, timely and intelligible presentation of the periodic reports which Abengoa Bioenergy is
required to submit before the public authorities and to its parent company, Abengoa.
Compliance with the applicable laws, standards and regulations.
Approach to actual or possible conflicts of interest.
Guidance allowing employees, executives and company directors to inform Abengoa Bioenergy of such
conflicts.
Duty of the highest level of confidentiality and fair treatment within and outside Abengoa Bioenergy.
The corporate culture and the Common Management Systems.
A service vocation in performing operations.
Dedication to projects under development.
Professional responsibility in actions.
Quality in both internal and external actions.
Actions taken in accordance with knowledge, common sense, professionalism, order and responsibility.
Information confidentiality, to be used exclusively for the purpose of Abengoa Bioenergy's business
objectives.
Labor Regulations
All workers at Abengoa Bioenergy are subject to the application of supra-corporate labor regulations in
accordance with the nature of their activities and the countries where they operate. In addition to the legal
provisions of each country, regulatory protection by means of collective sector or regional agreements plays a
particularly important role, along with individual agreements at the company itself, signed with workers or their
unit or trade union representatives.
Such agreements include clauses specifying, among other particulars, the minimum period of notice, in
accordance with the job in question and the country. It should in particular be mentioned in this regard that the
Code of Conduct applies to all, and is based on a view that the decency, integrity and sound judgment of
employees, executives and directors are essential for the company's reputation and success in terms of their
relationship with customers and potential customers, with colleagues, the competition, public authorities, the
media and all other individuals and institutions with which the company comes into contact.
Mention should likewise be made of the application of Abengoa Bioenergy's principles and commitments as
highlighted at the outset of this chapter.
Abengoa Bioenergy thus respects and supports the free association of its workers, which it views as an
inalienable right. Dialogue with workers' representatives is, meanwhile, ongoing, and they are informed of all
aspects of relevance to them.Abengoa Bioenergy rejects forced labor and child exploitation, supporting all
initiatives intended to eradicate child labor.
ABENGOA BIOENERGY
40
Stakeholders
Abengoa Bioenergy guarantees all its workers, as a basic employment right, prior information about any
structural or organizational change taking place at the company, whether individually or through their
representatives, in accordance with the notice periods established in law and in collective agreements.
Over the course of 2010 no incident of discrimination was detected by means of the communication channels
established by the company. Abengoa Bioenergy likewise rejects forced labor and child exploitation, supporting
all initiatives intended to eradicate child labor.
Family and Work Life Balance
Abengoa, and by extension its business groups, and in particular Abengoa Bioenergy, has introduced a series of
initiatives intended to make the working environment more humane and pleasant, increasing the quality of life at
work and allowing workers to balance their family and professional lives.
In 2010, the company has implemented various actions to favor the conciliation of family and professional life.
The following initiatives stand out:
Flexible Compensation (FC) Plan for Abengoa company employees in Spain, including daycare
vouchers, health insurance, training, and computer equipment.
Work schedule flexibility at the company’s main office locations.
Employee social assistance. Abengoa has a social action department, through which employees can
receive advice, support and orientation; raise doubts or seek follow-up on specific family, medical, social
or economic problems. The Focus-Abengoa Foundation, through GIRH, also has social funds available to
provide economic aid to employees in situations of need.
Free transportation service to the Campus Palmas Altas headquarters from various locations in the city
of Seville.
Medical service to enhance employee healthcare coverage at work facilities with a headcount of over
300. The company’s major worksites have specific medical facilities staffed by specialized personnel and
equipped with the latest in modern technology.
Subsidized daycare service at the main company work locations.
Gymnasiums at the company’s major work facilities, equipped for physical exercise and providing areas
for group activities, including dance, aerobics, step aerobics, pilates, etc.
Employee benefits are enjoyed by all company personnel, regardless of the contractual relationship. Management
procedures require that all Abengoa employees have life and disability insurance coverage, and the companies in
each country are responsible for taking out these policies for all employees.
ABENGOA BIOENERGY
41
Stakeholders
Our Costumers
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.
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.
Communication
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. All this goes hand-in-hand with strict compliance with
contracts, ensuring that Abengoa Bioenergy is a byword for reliability in all regards.
Factors such as the recent Corporate Image Change in Brazil, improvements to the Customer Service
Department, a strategic training plan focusing on the development of the company's professionals and highly
competitive prices (given the company's position as a producer and distributor of ethanol) are all key factors
allowing it to capture a substantial share of customers at all points of sale.
Customer Privacy
Abengoa Bioenergy is covered by Abengoa's principles and systems regarding Customer Privacy.
Abengoa guarantees the validity, integrity and security of all information it handles, with a particular focus on all
aspects regarding the personal data of customers. With the aim of guaranteeing security measures for
information systems and communication, a security policy declaration has been issued, applicable to all Abengoa
firms and companies. This declaration provides information on the introduction of an Information Security
Management System, as the tool intended to achieve security objectives, based on confidentiality, integrity and
availability.
The Security Management System explicitly sets out all aspects regarding policy, regulations and obligations on
information system users, irrespective of whether or not they are Abengoa employees. This system develops the
policy for use of Information Systems, the handling of incidents connected with security, password policy, security
at the workstation, anti-virus protection, wireless networks, system administration, perimeter security, personal
data protection and information classification.
ABENGOA BIOENERGY
42
Stakeholders
The information channels available to Abengoa Bioenergy did not during 2010 record any claim connected with
respect for privacy or the loss of the personal data of customers at Abengoa companies. Nor were any fines
issued on the basis of a breach of regulations regarding the supply and use of the products and services offered
by each of its companies.
Our Providers
Five basic guidelines define the relationship with suppliers and reinforce the Procurement strategy:
Outsourcing
Leadership
Globalization
Local development
Integration
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 wellknown 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.
ABENGOA BIOENERGY
43
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.
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.
Purchases to Local Providers (M€)
Purchasing Total volume
Local
Suppliers(%)
Brazil
360
97%
Switzeland
0,7
42%
4
100%
Spain
919
91%
France
0,2
78%
United Kingdom
0,1
100%
The Holanda
206
37%
United States
638
85%
2,128
85%
Germany
Total
ABENGOA BIOENERGY
44
Stakeholders
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 SA 8000, 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.
Code for Abengoa Bioenergy Suppliers and Subcontractors
(Established by Abengoa in accordance with the Abengoa Professional Code of Conduct)
1. All applicable laws and standards of the company where operations are performed must be fulfilled.
2. Human rights must be respected, and no employees may suffer harassment, physical or mental punishment or
any other form of abuse.
3. 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.
4. Forced or imposed labor may not be employed, and employees must be free to leave their job having first
given sufficient notice.
5. Child labor may not be employed, and in specific terms ILO standards must be respected.
6. The rights of employees to associate freely must be respected.
7. All employees must be provided with properly safe and hygienic working conditions.
8. Activities must be performed in accordance with respect for the environment and compliance with the relevant
legislation in the country in question.
9. 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.
10. 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.
11. 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.
Abengoa Bioenergy promotes its shared culture, values and corporate identity fostering the utmost respect for
Human Rights within its social context, and requires that those companies working with it fully comply with this
principle. Abengoa Bioenergy categorically rejects any form of forced labor or child exploitation, and supports
initiatives intended to eradicate such practices.
Abengoa Bioenergy verifies by means of contractual clauses that suppliers faithfully comply with the number of
working hours in accordance with the legal terms applicable to their workers. Abengoa Bioenergy has a very
strict internal policy to ensure compliance with the employment standards and laws in every country where it
operates, and also offers additional benefits over and above the legally established minimums. Compliance with
this policy is subject to strict control and verification by the company. Practically all the company's investment
agreements, along with those signed with its leading distributors and contractors, are subject to analysis with
ABENGOA BIOENERGY
45
Stakeholders
regard to human rights by means of the procedures laid down in the Common Management Systems, fulfillment
of which is mandatory for all employees. A system is being introducedduring 2010 to monitor and analyze
compliance with the aforementioned code by suppliers.
ABENGOA BIOENERGY
46
Environment
Environment
ABENGOA BIOENERGY
47
Environment
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.
In accordance with these principles, Abengoa Bioenergy is engaged in the development of biofuel production
and technological development for transport, including bioethanol and biodiesel, using biomass (cereal,
sugarcane, cellulosic biomass, oil-bearing seeds) as raw materials. Biofuels are used in the production of ETBE (a
gasoline additive) and for direct mixture with gasoline or diesel. Given their status as renewable energy sources,
biofuels reduce CO2 emissions and contribute to the security and diversification of energy supply, reducing
dependence on the fossil fuels used in automotive transport and assisting in the fulfillment of the Kyoto Protocol.
Abengoa Bioenergy manufactures and sells bioethanol, a renewable substitute for gasoline, obtained from cereal
and used as a biofuel. Bioethanol production reduces the consumption of fossil fuels and the emission of many
tons of GHGs into the atmosphere, since most of the CO2 emitted by vehicles has previously been fixed by cereal
plants during their growth. The manufacture of bioethanol also gives rise to other byproducts which are
particularly appealing from the environmental perspective, such as distillers grain with solubles, high-protein
compounds used in animal feed. Its main advantages are as follows:
Domestically produced renewable source of fuel.
Greater independence from oil imports.
Increases the octane level of fuel at a low cost.
Can be used by practically all vehicles.
Easy to manufacture and store.
Reduces acid rain.
Improves urban air quality.
Reduced water pollution.
Less waste.
ABENGOA BIOENERGY
48
Environment
In addition to these developments Abengoa Bioenergy is involved in improving the life cycle at its production
plants and is taking the action required (Monitoring Committee and other studies) to achieve optimization.
Abengoa Bioenergy has meanwhile completed construction in Cadiz, Spain, of a biodiesel production plant which
will use untreated vegetable oil as its raw material. Biodiesel is a renewable biofuel obtained through the
chemical reaction of methanol (or bioethanol) with vegetable oils (rape seed, sunflower, soy, palm). It contains no
sulfur, and compared with oilbased diesel reduces emissions of greenhouse gases (including CO2), carbon
monoxide (CO), particles (PM) and other pollutants.
Bioethanol and biodiesel are clean, renewable sources of energy which help reduce soil pollution thanks to their
biodegradable, non-toxic nature. Their use reduces energy dependence on fossil fuels and contributes to the
security of energy supply. Biodiesel production creates new sustainable rural development opportunities within
the context of a more marketfocused agricultural policy, as it assists in the development of energy crops and the
creation of agri-industries, helping maintain levels of employment and income in the rural world.
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. As a result, in 2008 as part
of the Abengoa environmental policy, the company introduced a greenhouse gas (GHG) emissions reporting
system, and between 2008 and 2009 implemented an environmental sustainability indicators system. These two
initiatives together, place Abengoa and Abengoa Bioenergy worldwide at the forefront in sustainability
management.
During 2010, the implementation of the computer application that combines the existing reporting tools has
been finalized. It has been designed to obtain the information reliably and immediately. It is integrated by the GRI
(Global Reporting Initiative) indicator system, the Greenhouse Gas effect (GHG) inventory, the Environmental
Sustainability Indicators (ESI) and any other indicator defined to measure the performance level of the company I
the areas of work detailed in the Master Plan and in those taken from the Relevant Matters of the CSR.
Through this system, the company knows the impact it has on the environment and communities where it is
present, since the application permits the daily management of information in terms of sustainability by
simplifying the reliable information capture process and its documentation, which facilitates the review and
consolidation of data.
ABENGOA BIOENERGY
49
Environment
Office Paper Consumtion
Abengoa Bioenergy is implementing a number of plans to reduce the paper used in its offices .
Paper
2009
2010
Paper (t)
Recycled Paper (t)
Cardboard (t)
4.68
1.18
0.45
12.47
1.3
0.12
Total (t)
6.31
13.89
Raw Materials
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 12.36%
Raw Materials
2009
Vegetal Oils
Biomass
Sugarcane
Cereal
Wine Alcohol
Vinasse
ABENGOA BIOENERGY
70,360
1,029
4,111,150
3,153,237
15,653
1,722,690
50
2010
(t)
(t)
(t)
(t)
(t)
(m3)
1,742
5,201,195
3,070,990
9,809
1,401,854
(t)
(t)
(t)
(t)
(t)
(t)
Environment
Chemical Products
Chemical Compounds
Citric Acid
Clorhidric Acid
Phosphoric Acid
Sulfamic Acid
Sulfuric Acid
Ammonia
Sulfur
Lime
Bleach
Sodic Metilate
Chemicals
Caustic Soda
ABENGOA BIOENERGY
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
51
2009
2010
132
860
612
27
9,770
1,570
242
3,518
582
1,241
13,711
9,620
240
1,758
319
40
11,420
3,380
4,006
652
2,604
29,889
9,719
Environment
Other materials and compounds:
Other Materials and Compounds
2009
Fats
Antibiotics
Enzymes
Yeasts
Other Salts
Brine
Filter Cake (Torta de Filtro)
Calcareous
P ota ssium chloride
Monoammonium phosphate
Plaster
Silicon
Bleaching sand
Fertilizer
Biocides
Nutrients
Fertilizers
Molasses
Other Biocides
Urea
Methanol
Lubricant Oils
Wood
Metals
Plastics and polymers
Spares
ABENGOA BIOENERGY
52
(t)
(t)
(t)
(t)
(t)
(m3)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
(m3)
(t)
(t)
(m3)
(t)
(t)
(t)
(t)
(t)
(t)
(t)
2010
3
2
4
19
2,811 58,896
85
283
911
344
0
188
15,582 103,179
- 14,109
926
781
856
547
319
561
48
72
22
21,656 19,542
270,299 254,005
179
4,987
9,784
14,438
13
20
2
0
161
49
30
39
105
Environment
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).
Energy Consumption
Direct Energy Consumption (GJ)
Petroleum by product
2010
3,777,021
Natural Gas
19,484,827
Other
174,912
Coat by product
0
Biofuels
178,826
Biomass
11,701,313
Total
35,316,899
Indirect Energy Consumption (GJ)
Coat
Fuel-oil
96,987
Gas
1,182,656
Biomass
Residue
Remains
2010
1,748,699
52,204
26,103
(1)
575,259
Total
3,681,908
Total Energy Consumpiton (GJ)
38,998,808
Energy 2010
Intermediate Energy Purchase (GJ)
Electrical energy
Thermal energy
1,609,305
1,417,828
Energy Production (GJ)
Electrical energy
Thermal energy
6,506,012
3,263,724
In the Abengoa Bioenergy information system no initiatives have been detected for saving energy due to the
conservation and improvements in efficiency and no initiatives have been identified to provide products and
efficient services in energy consumption or based on renewable energies.
ABENGOA BIOENERGY
53
Environment
Water
The main sources for uptake are groundwater and third-party supply, the main use being that involved in
bioethanol production processes themselves.
Water 2010 (m3)
Water capture (m3)
2010
River Water
Well Water
Grid Water
Acquired steam (t)
7,837,198
5,919,389
4,225,076
58,215
The amount of recycled and reused water has been 248,624,701 m3, which is 1.378% with respect to the total
volume of water used in Abengoa.
Abengoa Bioenergy’s information system does not show that any of the sources used for 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
Affected areas by facilities
Project
Protection Status
location with
respect to the
protected area
Abengoa Bioenergy Corporation - York
Adjacent to
Abengoa Bioenergy Agroindustry - São João
Within
Abengoa Bioenergy Agroindustry - São João
Within
Abengoa Bioenergy Agroindustry - São Luiz
Within
Protection status
maintained per the
Comprehensive Plan and
Environmental
Assessment
Type of
operation
Attribute of the
protected area
Total protected
area (hectares)
Protected area
affected
(hectares)
Production
Freshwater ecosystem
38
38
Protected
Offices
Freshwater ecosystem
0.04
0.04
Under recovery
Extraction
Terrestrial ecosystem
1,462
1,462
Under protection. Not
possible to determine
protection status.
Offices
20
20
Within
Under recovery/
protection status.
Production
5
5
Within
Under recovery/
protection status.
Extraction
1,805
1,805
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.
ABENGOA BIOENERGY
54
Environment
GHG Emissions
GHGs (Greenhouse Gases) are the main cause of global warming and climate change. A reduction in GHG
emissions will serve to slow down warming and so achieve less substantial climate change. Abengoa Bioenergy is
undertaking a campaign at all its offices and facilities to supervise and quantify such emissions.
GHG emissions (t CO2-eq)
Direct emissions
Direct emissions from biomass (1)
Indirect emissions (2)
Other emissions (3)
Total emissions
2009
2010
827,770
1,841,602
275,836
38,151
1,849,817
1,795,486
410,928
79,451
2,983,359 4,135,682
(1) According to the GHG Protocol Corporate standard
(2) Including emmisions from electrical, thermal and vapor acquired energy
(3) Including emissions associated with work-related travel, work commutes, losses in the transmission of
electrical power and emissions in the value chain of fuels consumed for the generation of acquired electrical
power
Calculation of greenhouse gas (GHG) emissions has taken into account direct emissions from all sources owned
by Abengoa (combustion, process, transportation and fugitive emissions), indirect emissions through electrical,
heat or steam energy acquired, indirect emissions from business trips, travel to work, losses in the distribution
and transportation of electrical energy and emissions throughout the value chain of fuels consumed for the
generation of electrical energy ackquired. Emissions corresponding to biomass from combustion or processes are
likewise reported separately from the above.
The calculation of emissions was performed in accordance with the IPCC and GHG Protocol methodologies,
employing wherever possible specific fuel emission factors; in other cases national GHG inventory values for the
countries where our activities take place, and lastly generic values published by the IPCC.
For Abengoa Bioenergy the inventory of greenhouse gas emissions is a complete and mature instrument
guaranteeing its responsibility regarding climate change.
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 36 kg.
Initiatives implemented to reduce greenhouse gas emissions include reducing 2% of the emissions from the
burning of sugar cane straw. The reductions reached with this initiative are 20,790 t CO2.
ABENGOA BIOENERGY
55
Environment
Athmosferic Emissions:
Atmospheric Emmisions (t)
NOX
SOX
CO
HCL
COV
Partícle
Total (t)
2009
2010
2,938
3,629
168
10,370
0
3,384
7
192
9,345
20
3,149
2,759
37,942
19,093
Discharges
Discharges (m3)
Discharges to sewer networks
Discharges to external treatment facilities
Discharges to surface water masses
Discharges from land infiltration
Dispersed or undefined land discharges
Third-party delivery for Abengoa
Third-party delivery for reutilization
Total
ABENGOA BIOENERGY
2009
2010
2,456
375,206
2,756,841
102
4,512,403
-
762,368
0
2,327,084
18
773,273
0
3,651,584
7,647,008
56
7,514,328
Environment
Waste
Hazardous Waste (t)
Ground or underground deposit
Land incineration
Permanent deposit
Combination or previous mixture
Prior storage
Treatment in terrestrial environment
Dumping at specially designed sites
Biological treatment
Physico-chemical treatment
Utilization as fuel or other means of producing energy
Exchange of residue to subject to operations
Waste accumulation for use in subsequent operations
Solvent recovery or regeneration
Recycling or recovery of metals and metal compounds
Recycling or recovery of other inorganic material
Recovery of elements used to reduce contamination
Regeneration or other new use of oils
Deep injection
Utilization of waste obtained from operations
Recycling or recovery of organic substances that are not utilized as solvents
1
1,093
0
3
181
0
111
0
14
108
0
8
50
12
16
55
27
0
0
8
Total
1,685
Non-Hazardous Waste (t)
Physico-chemical treatment
Ground or underground deposit
Permanent deposit
Prior storage
Treatment in terrestrial environment
Dumping at specially designed sites
Biological treatment
Utilization as fuel or other means of producing energy
Soil treatment, resulting in agricultural benefit or ecological improvement
Waste accumulation for use in subsequent operations
Recycling or recovery of organic substances that are not utilized as solvents
Recycling or recovery of metals and metal compounds
Recycling or recovery of other inorganic material
Recovery of elements used to reduce contamination
Combination or mixture
Utilization of waste obtained from operations
Exchange of residue to subject to operations
Land incineration
Solvent recovery or regeneration
0
267
59
126
6,000
402
30
0
2,978
389
16,378
635
1,104
1,605
14
55
0
168
1
Total
30,210
ABENGOA BIOENERGY
57
Environment
Accidental Spillages
In 2010, 1 accidental spill due to Abengoa’s activity has been recorded through the information channels, which
has involved a total cost of €50,563. There was no relevant impact as immediate actions were taken and
correction works were immediately started. The spill was contained and the waste was eliminated by an external
subcontracted company. The waste generated was treated by the authorized manager.
Accidental Spills (€)
Substance
Spilled
Company
Recovery
cost
Oil
Abengoa Bioenergía San
Roque, S.A.
50,563
Description
Tank switch malfunction
during ship
unloading. Spilling
extending to the
beach
Solution
Making sure that
the rainwater outlet
valve is closed
during ship
unloading
The existence of water resources or habitats affected by water spillages from its own activity has not been
recorded.
Transport of Hazardous Waste (t)
In accordance with our Environmental Management Policy, all those companies that generate hazardous waste
perform a thorough identification and monitoring process of these wastes and their quantities in all transport
operations, to the authorized agents, whether belonging to Abengoa Bioenergy or external companies.
Hazardous Waste Transportation (t)
Country
France
Brazil
Spain
United States
TheNetherlands
Entry of
waste into
the country
118
_
_
_
_
Exit of waste
Waste
Waste
from the
imported
exported
country internationally internationally
_
_
_
148
19
11
1.450
_
_
_
_
_
_
_
_
The assessment of the impact of the transport of products, goods and materials forms part of our environmental
management systems. In this aspect, no significant impacts due to this have been detected in the Abengoa
Bioenergy information system.
ABENGOA BIOENERGY
58
Environment
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 2010 as a result of a breach of laws and regulations. At the Abengoa corporate level the term
"relevant or significant material" has been defined as any contingency in excess of €50,000.
Initiatives to mitigate environmental impacts
In order to reduce GHG emissions in all company activities, business trips have been reduced, only making those
that are strictly necessary and thus saving on emissions due to business journeys, by promoting
videoconferencing, webex in long-distance committees and meetings and promoting online training, in addition
to the use of the fleet of vehicles consuming 2nd generation e85 in the offices of Santiago de Compostela,
Madrid and Barcelona .
Initiatives have also been implemented in order to reduce indirect energy consumption. These initiatives are
related to journeys to/from work, such as, for example, providing public buses to the workplaces for employees,
and related to the value chain of products and services, performing an efficient management of the supplier
portfolio.
Environmental Disbursement
Measuring the expenses for environmental mitigation and protection allows Abengoa to assess the efficiency of
its environmental initiatives. Below, we itemize the correction costs and environmental prevention and
management costs.
ABENGOA BIOENERGY
59
Environment
Environmental Expenditures (€)
Correction Expenses
Waste treatment and disposal
1,098,747
Emissions treatment
8,570
Expenses for purchasing and utilizing emissions certificates
Amortization of specific equipment, maintenance,
materials and services necessary for operation
0
49,089
Environmental responsibility insurance
1,243
Cost of remediation-cleanup and decontamination
114,228
Outside environmental management services
0
Environmental prevention and management expenses
Personnel dedicated to training and instruction
Outside environmental management services
3,350
572,228
Outside
management
Personnel
for activitiessystem
arising certification
from environmental
management
652,057
Costs of implementing cleaner technologies
271,431
Other environmental management costs
Environmental training
41,187
85,805
0
Amortization of specific equipment, maintenance,
materials and services necessary for operation
17,927
Cost of remediation-cleanup and decontamination
0
Environmental responsibility insurance
12,009
Emissions treatment
0
Waste treatment and disposal
1,034,693
Expenses for purchasing and utilizing emissions certificates
1,908,987
ABENGOA BIOENERGY
60
Community
Community
ABENGOA BIOENERGY
61
Community
Community
Policy, Strategy and Objectives
Abengoa 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.
The Focus-Abengoa Foundation guides, channels and complements the social action of Abengoa. Its actions
generate social assets that help to develop the surrounding communities, entrench the company within society
and foster activities among employees, while also spurring on research and helping to disclose and disseminate
the scientific and cultural resources and assets of the foundation. Since 1982, the foundation has been engaged
in general initiatives to help serve the community in five key areas: Aid and assistance, culture, education,
research, and the welfare of employees, which have effectively become the social force driving Abengoa
forward.
Main Projects
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 essentiallyin 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 .
ABENGOA BIOENERGY
62
Community
Human Rights
As a subsidiary of Abengoa (which signed up to the Global Compact in September 2002), Abengoa Bioenergy
ensures compliance with the 10 essential principles set out in the Compact.
These principles are based on universal conventions and declarations: two refer to human rights in accordance
with the Universal Declaration of Human Rights; four involve employment rights, based on the ILO Declaration on
Fundamental Principles and Rights at Work, three are environmental, with reference to the Rio Declaration on
Environment and Development, while one addresses the fight against corruption, on the basis of the UN
Convention against Corruption.
All actions are essentially underpinned by respect for the fundamental rights of people and their environment, to
which end Abengoa Bioenergy and all its subsidiaries:
Support and respect the protection of internationally proclaimed human rights within their sphere of
influence.
Guarantee that companies are not complicit in human rights abuses.
Support freedom of association and the effective recognition of the right to collective bargaining.
Support the elimination of all forms of forced and compulsory labor.
Support the effective abolition of child labor.
Support the elimination of discrimination in respect of employment and occupation.
Maintain a precautionary approach to environmental challenges.
Foster initiatives to promote greater environmental responsibility.
Encourage the development and diffusion of environmentally friendly technologies.
Combat all forms of corruption, including extortion and bribery.
Programes
During 2010, Abengoa Bioenergy has started an infrastructural project for common public benefit in Brazil. It has
developed a renewable energy cogeneration project for the community. The positive aspects include job creation,
increase in power capacity and increase in tax collection for the community. The investment allocated to this
project is over €310 M and there are no current or planned negative impacts through the information channels
Abengoa Bioenergy has available.
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 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 2010 Abengoa Bioenergy
dedicated approximately € 81,000 to programs involving social, cultural, educational and research developments.
ABENGOA BIOENERGY
63
Community
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:
ABENGOA BIOENERGY
64
Community
Social Actions
Company
Country
CRS Activity
Abengoa Bioenergía Nuevas Tecnologías, S.A
Spain
Abengoa Vuela Program
Spain
Patron Saint festivities in the locality of Cordovilla
Spain
Patron Saint festivities in the locality of Huertas
Bioetanol Galicia, SA
Spain
Donation to the As Mamoas cultural association
Spain
Patron Saint festivities in Teixeiro
Spain
Sponsorship of the I International Occupational Risk Prevention
conference, organized by the Science Faculty of the Lugo Campus
Ecocarburantes Españoles, SA
Spain
Collaboration with bordering neighborhood associations and support for a
children’s football team in Murcia
Abengoa Bioenergy Netherlands, B.V.
TheNetherlands
Vlaggenparade (flagh parage)
Abengoa Bioenergy Corporation France, S.A.
France
ABF signed an agreement with the ‚Handi’réseau‛ association, which
works to find employment for disabled workers - €14,000 donated to CSRrelated associations
Abengoa Bioenergía Nuevas Tecnologías, S.A
Spain
Sponsorship of the International Conference on Lignocellulosic Ethanol;
From Demonstration to Market Deployment
Abengoa Bioenergy of Illinois, LLC
USA
External social action carried out over the course of the annual reporting
period: Chilean Club of Chicago, Arch House Community Home, Granite
City APA, Phoenix Crisis Center, Madison Parks and Recreations, Madison
Volunteer Fire Department
Abengoa Bioenergy of Indiana, LLC
USA
Housing and other living expenses provided to an employee whose home
was destroyed by fire
Abengoa Bioenergy of Nebraska, LLC
USA
Abengoa Bioenergy Corporation - Colwich
USA
Sponsorships: City of Ravenna - Rescue Squad, Ravenna Public Schools Parents interested in Kids, Ravenna High School, Nebraska 4-H
Foundation, Ravenna Chamber of Commerce, Nebraska Tractor Pullers
Association, Litchfield Scholarship Fund, Ravenna Public Schools Scholarships, Breast Cancer Awareness, Ravenna Public School academic/athlete programs, Exchange Student programs, City of Ravenna
Fire Department, Ravenna High School Trap Club.
Charitable contributions : St. Annes Altar Society, Amercian Red Cross,
Quivira Council - Boy Scouts, Renwick Schools - St. Marks Grade School,
Renwick Schools - Andale Elementary, Kraus Foods - Donations for Local
Citizens, Fire Department and Park, City of Colwich, Andale High School,
St. Joseph School, y Renwick Schools - Colwich Grade School
Abengoa Bioenergy Corporation - York
USA
Europe
United States
USA
Adopt-A-Family: Holiday gifts purchased for less fortunate people living in
our community
4 employees participated in a charity 4-H Trap Shoot
Brazil
Abengoa Bioenergia Agroindústria Ltda
Brazil
Wheelchair donated to the child of an operator (sugarcane cutter)
suffering from cerebral palsy
Brazil
Donation of 300 liters of alcohol per month to the Catholic Church (Santa
Rita de Cássia parish) of the city of Santa Cruz das Palmeiras. The parish
is involved in a project tied up with human development.
Brazil
Donation of structure to assemble tents for events (quermesse festivals) for
the Catholic Church (Santa Rita de Cassia parish) of Santa Cruz das
Palmeiras. The parish organizes these festivities to raise money for its
social work.
ABENGOA BIOENERGY
65
Community
Because of the nature of the inversions and operations of Abengoa Bioenergy, the operations inthe communities
have a permanent characther and it aims specially a long term relation with the communities.
Conferencias
In the month of May, for the ninth consecutive year, ‚The World Biofuels 2010‛ Conference has taken place, at
the Hospital de los Venerables, the headquarters of the Focus-Abengoa Foundation in Seville
The sustainability of the life cycle of biofuels and the process of procuring raw materials to produce them; the
mechanisms for verifying their sustainability; the globalization of the biofuels markets; the raw materials and the
current situation of the conversion technologies used to produce second generation biofuels were the main
issues that were tackled in this new edition of the World Biofuels
The conference analyzed the sustainability of biofuels in terms of reducing greenhouse gases; changes in the use
of cultivation land recently approved in the USA and the European Union; as well as the level of definition and
implementation of the accounting and verification systems for these emissions, and the certification systems for
raw materials. The source and the cultivation of raw materials for biofuels has become one of the determining
factors in their sustainability. During the course of the conference, the availability of agricultural resources (new
land and the increase in crop yields) and water resources will also be analyzed ” neither of which should lead to
deforestation or loss of biodiversity. The debate will also look at how to ensure that the effects of indirect land
use change (iLUC) on greenhouse gas emissions become a requirement for sustainability, once the scientific and
technical community reaches a consensus on the methods for comprehensively, reliably and verifiably measuring
these effects.
In addition, representatives from the main biofuels producers’ associations in the USA, Brazil and the European
Union will analyze the evolution of the bioethanol and biodiesel markets in 2009, in which demand has
continued to grow at high rates. The second half of 2008, when the raw material prices significantly fell despite
the high consumption of biofuels, showed that growth in this market had no effect on the prices of cereals and
oil seeds, which remained stable in 2009, and in some cases even declined by a considerable amount.
Cellulose biomass (agricultural, forestry and urban by-products, and new crops and dedicated tree species) are
seen as one of the raw materials of the future for the introduction of second generation biofuels in the market.
Representatives from the most important companies in the sector will report on their experiences using these
materials and the technology costs for converting biomass (cereal straw and maize by-products) into cellulose
bioethanol, based on the experiences of the pilot plants in Spain and the USA, as well as their vision of the
industrial and commercial viability of these technologies and their implementation periods in the market.
The conference ended with an analysis of the use of biofuels obtained from algae as fuel for the aviation
industry, as well as the expected time horizon for their commercial implementation.
ABENGOA BIOENERGY
66
Community
Associations
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. In Europe, Abengoa Bioenergy is a member of eBio - European Bioethanol Fuel Association,
the main association fighting for the promotion and increased integration of biofuels in the transport sector. It
also belongs in the United States to the RFA - Renewable Fuels Association, which promotes policy, legislation
and R&D initiatives to improve and increase the production and use of bioethanol. Lastly, in Brazil it is party to
UNICA - União da Indústria da Cana-de-Açúcar (the Sugarcane Industry Union), the main aim of which is to
champion the sustainable development of the sugarcane bioethanol industry.
Transparency and the Fight against 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.
In addition to the provisions of this Code of Conduct and other Abengoa policies, Abengoa Bioenergy
employees working with any public authority body in any country are under an obligation to be familiar with, to
understand and to observe the laws and regulations applicable to the conduct of business with such bodies. In
the event that a national, state or local public authority body should have adopted a more stringent policy than
that of Abengoa regarding gifts and gratuities, Abengoa Bioenergy's employees and representatives must comply
with the said stricter policy. In specific terms, the US Foreign Corrupt Practices Act (hereinafter also "FCPA"),
makes it a crime for companies or their officers, directors, employees or representatives to pay, promise, offer or
authorize payment of any item of value to any foreign leader, foreign political party, foreign political party leader,
candidates for foreign political office or heads of international public organizations for the purpose of securing or
continuing business.
Similar laws have been or are being introduced in other countries. Payments of this nature run directly counter to
Abengoa's policy, even if a refusal to make them could lead to the company losing out on a business
opportunity. The FCPA also requires that companies maintains precise records, files and accounts and devise an
internal accounts supervision system capable of providing reasonable guarantees that, among other aspects, the
company's records and archives provide reasonable detail as to operations and disposals of assets. Abengoa
ABENGOA BIOENERGY
67
Community
Bioenergy will not supply or encourage anyone to supply any type of incentive to any Public Authority employee
or any supplier subject to a governmental or non-governmental contract or sub-contract in order to secure any
contract or commercial advantage.
The decency, integrity and sound judgment of the employees, executives and directors of Abengoa is essential for
the reputation and success of the company. It Professional Code of Conduct governs the actions and working
relations of its employees, executives managers and company directors with customers and potential customers,
with colleagues, the competition, public authority bodies, the media and all other individuals or institutions with
which the company comes into contact. Such relationships are essential in order to achieve the continued success
of Abengoa Bioenergy and of each of its subsidiaries.
The Abengoa Code of Conduct, which likewise applies to Abengoa Bioenergy, demands the highest standards of
decency and ethical behavior, including appropriate and ethical procedures in order to deal with actual or
potential conflicts of interest between professional and personal relationships; it demands full, fair, accurate,
timely and intelligible presentation of the periodic reports which Abengoa Bioenergy is required to submit to
public authority bodies and all other communications undertaken; it demands compliance with the applicable
laws, standards and regulations, deals with actual or potential conflicts of interest and provides guidelines
allowing employees, executives managers and company directors to inform the company of such conflicts; it
covers the improper use or wrongful application of Abengoa Bioenergy's corporate opportunities and assets;it
demands the highest level of confidentiality and fair treatment both within and outside the company; it lastly
requires immediate internal notification of any breaches of the Code of Conduct, and appropriate disclosure of
any unlawful conduct.
Over the course of the financial year the Abengoa Bioenergy Internal Audit Department issued 239 audit reports,
including, among other aspects, the results of reviews and analyses of risks connected with corruption at those
companies classified as being material, while six legal audits were performed, which, although they do not
involve specific risk analysis for control systems, serve to supplement audit reports and are able to detect
situations which could potentially be classified as corrupt. No incident related to corruption has been recorded in
2010 through the information channels Abengoa Bioenergy has available and nor have any incidents related to
corruption or significant sanctions arising due to breach of laws and regulations. Abengoa 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 control procedure of external communications included in the internal
company standards. All responsible parties of areas involved in the content of the communication must authorize
and complete the information, so that it is unified and is truthful and complete, which guarantees that the
communications generate do not violate the company’s principles and values nor go against its Code of Conduct.
No claim in the organization’s companies has been made through the information channels that Abengoa had
available in 2010, with respect to this issue.
Abengoa Bioenergy is likewise involved in all scientific, technological and cultural activities undertaken in the
areas, cities and regions where it operates, bearing in mind that in general any activity which could be considered
as lobbying is not performed directly by Abengoa Bioenergy, but through its support for the various professional
associations which exist in each of Abengoa Bioenergy's operational sectors. In the United States the company
undertakes lobbying activities through the professional association "Cornerstone Government Affairs", and the
organizations ‚Renewable Fuels Association‛, ‚Association of Nebraska Ethanol Producers‛ and ‚Kansas
Association of Ethanol Producers‛. During 2010, no contributions have been made to political parties or related
institutions.
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68
Economic Performance
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69
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 2010, 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).
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We below quantify the direct economic value generated and distributed, in accordance with the methodology
developed by Global Reporting Initiative (GRI).
Direct Economic Value Generated and Distributed 2010 (k€)
Net sales
Other operating revenue
Financial revenue
Profits of associated companies
Profit from discontinued activities
Economic Value Generated (EVG)
Raw material costs
External partners
Employee benefit costs
Operating costs
R&D costs
Financial costs
Dividends (from consolidated cash flows balance)
Taxes paid (Income Taxes)
Investments in the Community
Economic Value Distributed (EVD)
Economic Value Retained = EVG - EVD
Significant Financial Subsidies received from Government as Capital Subsidies
Significant Financial Subsidies received from Government as Operating Subsidies
Significant Financial Subsidies received from Governments
1,575,153
118,079
3,121
0
0
1,696,353
1,133,623
2,685
111,436
238,090
14,399
156,493
24,047
-74,182
0
1,606,591
89,762
30,617
17,728
48,345
Paid Taxes by Countries (k €)
Brazil
-7,292
Switzeland
0
Germany
-5,033
Spain
4,261
France
1,208
United Kingdom
-278
TheNetherlands
14,668
United States
5,594
Total
ABENGOA BIOENERGY
13,129
71
Corporate Governance Report
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Corporate Governance
Board of Directors
The current Board of Directors was established in July 2007. It is currently formed by twelve members, eleven
Board members and a Non-board member Secretary, of a diverse composition facilitating delegation, attendance
and the adoption of resolutions with a minimum quorum guaranteeing multiple and plural representation on the
Board of Directors.
The Chairman of the Board is currently Mr. Javier Salgado Leirado, who is also CEO of Abengoa Bioenergy.
Members of the Board
The current members of the board are independent and do not hold any executive position at Abengoa
Bioenergy companies, except for the President, as stated above:
President
D. Javier Salgado Leirado
Directors:
D. Álvaro Fernández de Villaverde, Duque de San Carlos
Mr. Charles Wellesley, Lord Douro
D. Ricardo Martínez Rico
D. Ramón de Miguel Egea
D. Amando Sánchez Falcón
D. Santiago Seage Medela
D. Carlos Sebastián Gascón
D. Luis Solana Madariaga
D. Cándido Velázquez-Gaztelu Ruiz
D. Daniel Villalba Vila
Non-Board Member Secretary
D. Salvador Martos Barrionuevo
Senior Management
The following individuals are members of the senior management team but do not sit on the Board of Directors :
Ignacio García Alvear - Director General Financiero
Joaquín Alarcón de Lastra ” Director de Desarollo Corporativo
Francisco Antonio Morillo León - Director General Técnico
Juan José Lallave ” Director Corporativo de Tecnologías de la Información
Antonio José Vallespir de Gregorio ” Chief Ejecutive Officer
Salvador Martos Barrionuevo - Vicepresidente Ejecutivo Bioetanol Estados Unidos
Juan Taín Varela - Vicepresidente Ejecutivo Abengoa Bioenergia Brasil
Pedro Carrillo Donaire - Vicepresidente Ejecutivo Trading Europa
Brian Burke - Vicepresidente Ejecutivo Trading Estados Unidos
Ginés de Mula González de Riancho - Vicepresidente Ejecutivo Ecoagrícola
Gerson Santos-León - Vicepresidente Ejecutivo Nuevas Tecnologías
ABENGOA BIOENERGY
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Board Committees
Following on from the establishment of the Board of Directors, the need was perceived to establish dedicated
committees to deal with and provide a faster response in decision-making regarding specific issues. On March 25,
2009 the meeting of the Order Directors approved the creation of the following committees with the following
members:
Appointments and Remuneration Committee
Charles Wellesley, Lord Douro (President)
Carlos Sebastián Gascón
Daniel Villalba Vila
The Appointments and Remuneration Committee is made up of three non-executive directors appointed by the
Board of Directors for a maximum period of four years, which may be renewed for maximum periods of the same
duration. The Secretary of the Committee is the Secretary of the Board of Directors.
The duties and powers of the Appointments and Remunerations Committee are as follows:
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.
Analyze the requests that any Board member may formulate for the consideration of potential candidates to
fill the vacant positions in the Board, as well as the vacant positions in the Company.
The Appointments and Remunerations Committee meets as often as required in order to perform the
aforementioned duties, at least twice per year, and whenever convened by the President, on his own initiative or
at the request of any of its members, while meetings of the Appointments and Remunerations Committee are
deemed to have been validly convened if, all members being present, they rule that a meeting should be held.
ABENGOA BIOENERGY
74
The required quorum for the Appointments and Remunerations Committee is the majority of its members.
Attendance may be delegated to another board member. Resolutions are deemed validly passed by a vote in
favor by the majority of Committee members present.
Audit Committee
Ricardo Martínez Rico (President)
Daniel Villalba Vila
Álvaro Fernández de Villaverde
Ramón de Miguel Egea
The Audit Committee is made up of three non-executive company directors appointed by the Board of Directors
for a maximum period of four years, which may be renewed for a maximum period of the same duration. The
Secretary of the Committee is the Secretary of the Board of Directors.
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.
The Audit Committee meet as often as required in order to perform the aforementioned duties, at least twice per
year, and whenever convened by the President, on his own initiative or at the request of any of its members,
while meetings of the Appointments and Remunerations Committee are deemed to have been validly convened
if, all members being present, they rule that a meeting should be held.
ABENGOA BIOENERGY
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The required quorum for the Audit Committee is the majority of its members. Attendance may be delegated to
another board member. Resolutions are deemed validly passed by a vote in favor by the majority of Committee
members present.
New Techonologies Committee
Luis Solana Madariaga (Presidente)
Carlos Sebastián Gascón
Ricardo Martínez Rico
Ramón de Miguel Egea
The New Technologies Committee is made up of three non-executive company directors appointed by the Board
of Directors for a maximum period of four years, which may be renewed for a maximum period of the same
duration. The Secretary of the Committee is the Secretary of the Board of Directors.
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.
The New Technologies Committee meets as often as required in order to perform the aforementioned duties, at
least twice per year, and whenever convened by the President, on his own initiative or at the request of any of its
members, while meetings of the New Technologies Committee are deemed to have been validly convened if, all
members being present, they rule that a meeting should be held.
The required quorum for the New Technologies Committee is the majority of its members. Attendance may be
delegated to another board member. Resolutions are deemed validly passed by a vote in favor by the majority of
Committee members present.
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Risk Control Management
Abengoa Bioenergy’s Risk Management Model is based on the Abengoa´s policy and comprises two core
elements:
Common Management Systems (NOC)
These comprise the internal rules governing Abengoa and the approach to assessing and controlling risks. They
represent a common and shared culture when managing Abengoa business, in that they share accumulated
knowledge and define criteria and guidelines for the entire organization.
The systems envisage a host of specific procedures covering any action that could be seen as a risk for the
company, regardless of whether it has economic or financial implications. They are available electronically to all
employees, irrespective of geographic location or job category.
Obligatory Compliance Procedures- SOX
Obligatory Compliance Procedures (OCP) are employed to mitigate risks relating to the reliability of financial
information. The company adopts a system combining control procedures activities in key areas for the company,
the ultimate aim being to ensure the reliability of financial information and prevent fraud.
ABENGOA BIOENERGY
77
As a product of our firm commitment to transparency, and so as to continue guaranteeing the reliability of the
financial information prepared by the company, we have continued to strengthen our internal control structure
and to tailor it to the requirements prescribed by Section 404 of the North American Sarbanes-Oxley Act (SOX).
Following on from previous years, the company has once again this year voluntarily submitted the internal control
system for the entire group to an independent audit entrusted to an external auditing firm in accordance with
PCAOB (Public Company Accounting Oversight Board) auditing rules.
The approach to risk management, which comprises a raft of common beliefs and attitudes, is contained within
and applied through Abengoa’s Risk Management System, which is based on the Universal Risk Model.
Objectives
The responses designed and included within the compulsory compliance norms (Normas de Cumplimiento
Obligado, or NOC) and the OCP aim towards one of the following risk management scenarios:
Elimination. Complete elimination of the risk.
Reduction and control. Reduction of the risk to the fullest
extent possible by adopting strategic or security-related
measures (diversification of supply, quality systems,
maintenance, prevention, etc.).
Transfers to third parties. Transfer the risk to an insurance
firm or third party (supplier,subcontractor, etc.), without
Abengoa assuming any liability in relation thereto.
Financial withholding. Assumption of the risk, if it has not
been controlled in any other way
In 2008 the company drew up a Corporate Social Responsibility Steering Plan covering all areas and introduced at
all companies, adapting its CSR strategy to the social reality of the various communities where Abengoa
Bioenergy has a presence. Corporate social responsibility, understood as the integration within company strategy
of the expectations of stakeholders, respect for the law and consistency with international operational standards,
is one of the cornerstones of Abengoa Bioenergy's culture. The company reports to stakeholders on its
performance in various aspects of CSR by means of a report complying with the GRI standard for the drafting of
sustainability reports. This report is verified externally as part of the company's commitment to transparency and
thoroughness.
In 2002 Abengoa signed the United Nations Global Compact, an international initiative the aim of which is to
encourage organizations to voluntarily commit to social responsibility by applying ten principles based on human,
employment and environmental rights and the fight against corruption. In 2008 the company also signed up to
the United Nations Caring for Climate initiative. As a result, Abengoa, and as a consequence 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
78
Remuneration and Other Provisions
The remunerations paid out to the members of the Board during fiscal year 2010 to all members of the parent
company’s Board of Directors has been 180 thousand Euros as remuneration and 19 thousand Euros in expenses.
No advances or credits were granted to members of the Board of Directors during the 2010 fiscal year. The
company had in place no obligations on behalf of members of the Board of Directors in any regard at the close of
the 2010 fiscal year.
Remmunerations (k €)
Attendance fees and other retributions as member
19
Retribution as member of Board committees
180
Total
199
Neither are there advances or credits granted to the members of the Board of Directors as a whole, nor
obligations assumed as guarantees, with the exception of those detailed in note 2.19 of Volume ” Legal and
Economic-Financial Report 2010.
Additionally, during fiscal year 2010, the remuneration paid to the company’s senior management (including the
remuneration for their Senior Management duties to those that also form part of the company’s Senior
Management) has come to 4,172 thousands of Euros (4,429 thousands of Euros in 2009)
Since July 19, 2003, the date of entry into force of Act 26/2003, modifying the Securities Market Act (24/1988,
of July 28, 1988), and the Consolidated Text of the Corporations Law, with the aim of reforming transparency at
corporations, the members of the Board of Directors have held no stakes in the capital stock of companies
engaged in activities identical, analogous or complementary to that which constitutes the corporate purpose of
the parent company. They have likewise not engaged, except as described below, in activities on their own
account or that of a third party involving operations analogous or complementary to the corporate purpose of
Abengoa Bioenergía, S.A. Meanwhile, there were no companies in 2009 subject to application of horizontal
consolidation under the terms of Section 42 of the Spanish Commercial Code.
ABENGOA BIOENERGY
79
Benefits to Employees
Shares plans
Abengoa Bioenergía S.A., as parent company of the group, has entered into a number of obligations regarding
share-based incentives programs for executives and employees. These programs are tied to the fulfillment of
management objectives over the forthcoming years. Where there is no active market for the shares associated
with a program the proportional part of the personnel expense is recorded with reference to the repurchase
value established in those programs.
In the case of programs where the share does have a market value, this expense is recognized in accordance
with the proportional part of the fair value of the financial asset on the date when granted.
Abengoa Bioenergy Shares plan
On 18 March 2004 SIEMA (group shareholder) started the ‚Shares Plan for Bioenergy Executives‛ whereby it sold
approximately 2% of Abengoa Bioenergía, S.A. shares to employees of said Group maintaining a preferential
repurchase option on the shares for a certain fixed price during a period of 5 years, which can be exercised in the
case that Bioenergy was not listed, otherwise the preferential option would expire. To finance the purchase, the
employees received a bank guarantee with maturity for the same period as the repurchase option guaranteed
with the shares. The repurchase option is conditional upon compliance with certain objectives regarding the
group’s strategic plan. On 19 April 2009, Abengoa Bioenergía, S.A. subrogated in its obligations and rights
related to the ‚Shares Plan for Bioenergy Executives‛, renewing the plan and acquiring ownership of the credit
the employees had with the bank, keeping the same conditions regarding interest rate, as well as the option of
repurchase with respect to the shares. The main terms after renewal of the Plan are as follows:
The Plan’s duration is extended five years, expiring on 31 December 2013.
The Plan is aimed at a specific group, covering executive board members and members of the management
team. The total volume of shares sold to these executives and which are pledged represents 2.7% of Abengoa
Bioenergía, S.A.’s current share capital. The valuation of the plan’s liabilities is established at a maximum,
determined in accordance with the maximum amount of revaluation assured of the action in the event that
certain events are not fulfilled.
At the end of this period, this payment is not within the scope of the NIIF 2, with the remuneration coming to an
amount of 5,733 thousand Euros in total recognized as a liability in accordance with the proportional
consolidation of conditions in each fiscal year.
Abengoa Shares plan
On 2 February 2006, Abengoa (Parent group that Abengoa Bioenergy belongs to) set a Share Acquisition Plan or
Plan in motion. This was approved by the Abengoa Board of Directors on 23 January 2006. The Plan, which is
available under the same terms for all participants, is available for members of the executive management of
Abengoa and its subsidiaries. According to the Plan, the participants will have the right to purchase up to
3,200,000 Abengoa shares.
ABENGOA BIOENERGY
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Depending on the specific conditions of the plan in Abengoa, a payment plan is considered based on shares to
be paid in cash, in accordance with NIIF 2, since the company compensates the participants for their services in
exchange for assuming risk in the shares market. By using the loan guarantee, Abengoa guarantees the
participants, until the end of the plan period, that no personal losses shall occur in relation to a change in prices
of the shares acquired. In this sense, Abengoa assesses and recognizes a liability based on the share value at the
end of each notification period. After expiry of the Plan, employees can sell the shares to amortize the individual
loan or can amortize the loan as they please.
The compensation cost is recognized in the period of service required (the rights acquisition period), and is
determined by reference to the fair value of a hypothetical purchase option granted by the company to the
participant of rights that are not those of the market. For these purposes, the calculation bears in mind a number
of shares that can become exercised (or rights are acquired), which are updated at year-end, recognizing the
impact of the revision of the original estimates, where appropriate, in the Consolidated Results Account.
The fair value of the options awarded to the Abengoa Bioenergy executives during the determined financial year
in accordance with the Black-Scholes valuation model was 7,273 thousands of Euros in 2010 (7,516 thousands of
Euros in 2009) recognizing staff costs during fiscal year 2010 of 311 thousands of Euros (a revenue of 2,364
thousands of Euros in fiscal year 2009). The main data necessary for the valuation model were the share price, an
estimated yield per dividend, an expected life of the option of 5 years, an annual interest rate as well as a market
volatility of the share.
Variable Remuneration Plans
The Board of Directors of Abengoa, S.A. approved on July 24, 2006 and December 11, 2006 the 'Plan Dos'
Extraordinary Variable Remuneration Executives Plan, at the proposal of the Remuneration and Appointments
Committee. This Plan applies to 29 Abengoa Bioenergy executives, involves a total of €8.13 million over a
duration of five fiscal years, from 2007 to 2011, the condition applied being the fulfillment on a personal basis of
the goals set out in the Strategic Plan and ongoing employment at the company during the period in question,
among others.
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Additional Information
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82
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 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.
To comment on any issue regarding the content or other aspects of the Abengoa Bioenergy 2010 Annual Report,
please contact Abengoa Bioenergy's Head of Communication at the following addresses:
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Contacts
Saint Louis (USA)
Madrid (Spain)
Sevilla (Spain)
16150 Main Circle Drive, Suite 300 Paseo de la Castellana, 31 - 3 Plat.
Chesterfield, MO 63017-4689
28046 Madrid, España
Estados Unidos
Teléfono: +34 91 319 70 70
Teléfono: +1 636 728 0508
Fax: +34 91 308 52 42
Fax: +1 636 728 1148
Campus Palmas Altas
Parcela ZE-3 Palmas Altas
41014 Sevilla, España
Teléfono: +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.
The reliability of information demands that systematic records be held of consolidated data, that they be
traceable or reproducible, precise and comprehensive in the identification and consideration of data sources.
Effective internal checks must also be performed to help foresee, detect and correct significant errors in the data
reported.
The firm PwC, as independent external auditors, has reviewed the Corporate Social Responsibility Report in order
to ascertain application of standard AA1000 Assurance Standard (2008) and the Global Reporting Initiative
Guide, version 3 (GRI G3) in accordance with level A. The methodology employed in the review was defined in
accordance with the terms of standard ISAE 3000 (International Standard for Assurance Engagements Other than
Audits or Reviews of Historical Financial Information). The review was performed with a reasonable level of
assurance for all performance indicators included in the GRI index, for which sufficient evidence was obtained in
order to reduce the risk of material error to an acceptably low level. The application of the principles of standard
AA1000APS (2008) by Accountability has also been reviewed, with a moderated grade of assurance
ABENGOA BIOENERGY
84
The Report has also been reviewed in full by Global Reporting Initiative and by the management of Abengoa
Bioenergy and its parent company, Abengoa, receiving a rating of "A+".
As method to determine the relevant matters, Abengoa has chosen the application of the three principles defined
by standard AA1000 AS (2008): inclusivity, relevance and capacity for response, as well as the four principles of
the GRI: materiality, stakeholders’ inclusiveness, sustainability context and completeness. These
principles are interlinked, from which purpose materiality is chosen as an axis on which the other three rest.
ABENGOA BIOENERGY
85
Relevant CSR Matters in 2010
Matters
Monitoring indicator
Inclusion of non-financial aspects in the assessment of new projects
2.2
Corruption and transparency in contract awarding
Environmental objectives
Verification of environmental data
Water consumption
Energy consumption
Atmospheric emissions
Research into technologies for sustainability
Production and management of waste
Production and management of discharges
CO2 emissions
CO2 emission reduction targets
Assessment of carbon-related risks
Biodiversity management
Impacts derived from agricultural activity
Biofuel sustainability
Health and safety performance
Accident reduction targets
SO2, SO3, SO4
P8C2I3
3.13
EN3, EN4, EN8, P8C5I2,
EN3, EN4, EN8, P8C5I2,
EN16, EN17, EN19, EN20, P7C7I2,P8C9I1
2.2, P9C2I2
EN22,EN24,P8C10I1, P7C2I2,P8C10I1
EN21, EN23, P8C10I1, P7C2I2, P8C10I1
EN20, P7C2I2, P8C6I1
EN20, P7C2I2, P8C6I1
P8C2I4
EN11, EN12, P7C2I2
EN12
2.2
LA7, LA8, P4C2I2, P2C2I1
LA7
HR4, P6C2I1, P6C2I3, P6C1I1, P6C2I1,
P6C3I1
4.14, P1C3I1, P3C2I1, P3C3I1, P6C1I1,
LA1, LA2
LA1, LA2, LA3, LA10, LA11, LA12, L11,
L12, L13, LA14
Promotion of diversity and gender equality
Existence of confidential channels for employees
Job creation
Labor stability policies.
Technical training courses for potential employees
LA10,LA11,LA12
Developing strategies to certify the source of raw materials to
guarantee it does not compete with human consumption and
developing 2G biofuels
Restriction to business growth due to the limitations of the
legislation and regulations
Guaranteeing compliance of all suppliers and subcontractors with
the UN Universal Declaration of Human Rights
Commitment to R&D projects and, in general, to innovation and the
concept of efficiency throughout the organization
Home-work balance with respect to time, devotion and stress at
work
Guaranteeing that the BU policies respect equal opportunities for all
employees in terms of gender, origin and age
ABENGOA BIOENERGY
86
2.2
PR1, PR2, PR3, PR4, PR5, PR6, PR7,
PR8,PR9, P1C4I2, P2C3I2, P3C2I1, P4C2I2
HR2
2.2
P1C1I1, P4C2I2
HR4, P4C2I2, P5C2I1, P6C2I2,P6C1I1,
P6C2I3
Information on Dependent Companies
In order to present information homogeneously, all companies included within consolidation are subject to the
evaluation principles and standards followed by the parent company.
Dependent Companies
Dependent companies are all those over which Abengoa Bioenergy has the power to direct their financial and
operating policies. In assessing whether the Group controls another organization, consideration is given to the
existence and impact of potential voting rights which can actually be exercised or converted, along with possible
agreements with other shareholders.
Dependent companies are consolidated by means of the Full Consolidation Method from the date when control
is transferred to the Group, and are excluded from the consolidation perimeter as soon as such control ceases.
The acquisition method is used in accounting for the acquisition of dependent companies. The cost of acquisition
is the fair value of the assets transferred, the asset instruments issued and the liabilities incurred or assumed on
the date of exchange, plus the costs directly attributable to the acquisition. The surplus of the cost of acquisition
over and above the fair value of Abengoa Bioenergy's stake in the identifiable net assets acquired is recognized
as Goodwill. If the cost of acquisition is less than the fair value of the net assets of the dependent company
acquired, the difference is recognized directly in the Income Statement.
ABENGOA BIOENERGY
87
Depending Subsidiaries
Subsidiary name
Abengoa Bioenergy France, S.A.
Abengoa Bioenergy Hannover GmbH
ABC Issuing Company, Inc.
Abengoa Bioenergía Agroindustria Ltda.
Abengoa Bioenergía Biodiesel S.A.
Abengoa Bioenergía Brasil
Abengoa Bioenergía Inversiones, S.A.
Abengoa Bioenergía Nuevas Tecnologías, S.A.
Abengoa Bioenergía Outsourcing, LLC.
Abengoa Bioenergía San Roque, S.A.
Abengoa Bioenergía Santa Fe Ltda.
Abengoa Bioenergia Trading Brasil Ltda.
Abengoa Bioenergy Biomass of Kansas, LLC.
Abengoa Bioenergy Engineering & Construction, LLC.
Abengoa Bioenergy Funding
Abengoa Bioenergy Germany
Abengoa Bioenergy Hybrid of Kansas, LLC.
Abengoa Bioenergy Investments , LLC.
Abengoa Bioenergy Maple, LLC.
Abengoa Bioenergy Netherlands B.V.
Abengoa Bioenergy New Technologies, Inc.
Abengoa Bioenergy of Illinois, LLC.
Abengoa Bioenergy of Indiana, LLC.
Abengoa Bioenergy of Kansas, LLC.
Abengoa Bioenergy of SW Kansas, LLC.
Abengoa Bioenergy Operations , LLC.
Abengoa Bioenergy Renewable Power US, LLC.
Abengoa Bioenergy Technology Holding , LLC .
Abengoa Bioenergy Trading Europe, B.V.
Abengoa Bioenergy Trading US, LLC.
Abengoa Bioenergy UK Limited
Abengoa Bioenergy US Holding, Inc.
Asa Bioenergy Holding, AG
Asa Bioenergy of Nebraska, LLC.
Bioetanol Galicia Novas Tecnoloxías, S.A.
Bioetanol Galicia, S.A.
Ecoagricola, S.A.
Ecocarburantes Españoles, S.A.
SAS Abengoa Bioenergia Biomasse France
ABENGOA BIOENERGY
%
69,00
100,00
100,00
100,00
100,00
99,99
100,00
100,00
100,00
100,00
100,00
100,00
97,30
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
83,81
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
99,98
100,00
100,00
60,00
90,00
100,00
95,10
100,00
88
O
Holder Company
w
Abengoa Bioenergy Operations, LLC.
Abengoa Bioenergía Brasil, S.A./Abengoa Bioenergia Santa Fe, Ltda.
Abengoa Bioenergía, S.A./Ecoagrícola, S.A.
Asa Bioenergy Holding AG./Abengoa Bioenergia, S.A.
Abengoa Bioenergía, S.A./Ecoagrícola, S.A.
Abengoa Bioenergía, S.L./Instalaciones Inabensa, S.A.
Abengoa Bioenergy Operation, LLC.
Ecoagrícola, S.A./Abengoa Bioenergía, S.A.
Abengoa Bioenergía Brasil, S.A./Abengoa Bioenergia Trading Brasil Ltda.
Abengoa Bioenergia Brasil, S.A./Abengoa Bioenergia Agroindústria, Ltda .
Abengoa, S.A./Sociedad Inversora Energía y Medio Ambiente, S.A.
Abengoa Bioenergy Technology Holding, Inc.
Abengoa Bioenergy Funding LLC.
Abengoa Bioenergy Technology Holding, LLC.
Abengoa Bioenergy Maple, LLC
Abengoa Bioenergy Maple, LLC.
Abengoa Bioenergy Operations,LLC
Asa Bioenergy Holding/Abengoa Bioenergía, S.A.
Abengoa Bioenergía, S.A./Ecoagricola, S.A.
Abengoa Bioenergía, S.L./ Ecocarburantes, S.A.
Abengoa Bioenrgia, S.A.
Associated Companies.
Associated companies are those companies over which Abengoa Bioenergy exerts significant influence but does
not have control, in general involving a stake of between 20% and 50% of voting rights. Investments in
associated companies are integrated by means of the Equity Consolidation Method and initially recognized at
their cost. The Group's investment in associated companies includes goodwill (net of any loss through cumulative
impairment) as identified upon the acquisition.
The stake in losses or gains subsequent to acquisition of associated companies is recognized in the Income
Statement, and their stake in movements of reserves subsequent to the acquisition recognized under the
reserves. Movements subsequent to acquisition are adjusted against the book value of the investment if the stake
in the losses of an associated company is equal to or greater than the stake in the company, including any other
unsecured accounts receivable, no additional losses are recognized unless Abengoa Bioenergy has entered into
obligations or made payments on behalf of the associated company.
Gains through transactions between the Group and its associated companies not performed with regard to third
parties are eliminated in accordance with the Group's percentage stake in those companies. Likewise, unrealized
losses are eliminated, unless the transaction offers evidence of a loss through impairment of the assets being
transferred. Where it proves necessary to guarantee uniformity with the policies adopted by the Group, the
accounting policies of associated companies are modified.
Joint Ventures
Joint ventures are those where investee companies are jointly managed by the company in question and by third
parties not tied to the Group in accordance with an agreement between the parties, with neither exerting greater
control than the other. Stakes in joint ventures are consolidated by means of the Proportional Consolidation
Method.
The Group combines its stake in the assets, liabilities, revenue and expenditure and cash flows of the controlled
entity line by line jointly with similar items in its own accounts.
It recognizes its stake in the profits or losses derived from the sale of Group assets to entities controlled jointly by
the party corresponding to other stakeholders. Meanwhile, the stake in profits or losses of the jointly controlled
entity derived from the purchase by any Group company of assets of the jointly controlled company are not
recognized until such time as those assets are sold to an independent third party. A loss is recognized in the
transaction immediately if it reveals evidence of a reduction in the realizable net value of current assets, or a loss
through value impairment. Where necessary in order to guarantee uniformity with the policies adopted by the
Group, the accounting policies of joint ventures are modified.
ABENGOA BIOENERGY
89
Awards and Honors
In 2009 Abengoa Bioenergy received the following awards and distinctions for the performance of its productive
and commercial activities:
Obtaining the Sustainable Bioethanol Award in the World Biofuels Markets conference for its efforts made in
sustainability, reduction and measurement of greenhouse gases and the environmental and social benefits of
its operations and technology.
Obtaining, for the second consecutive year, the CSX Transport Safety Award granted by CSX Transportation
for its safe loading and maintenance practices in the transport of hazardous substances.
Obtaining the Southwestern Illinois Award, in Illinois (USA), by Leadership Council of Southwestern Illinois, for
its leadership in sustainable biofuel technology.
Obtaining the award from the St. Louis Chamber of Commerce (USA) in the St. Louis Top 50 Awards for its
contribution to the regional economy.
ABENGOA BIOENERGY
90
Informes de la Revisión
ABENGOA BIOENERGY
91
ABENGOA BIOENERGY
92
ABENGOA BIOENERGY
93
ABENGOA BIOENERGY
94
ABENGOA BIOENERGY
95
Informe ISO 31000
ABENGOA BIOENERGY
96
ABENGOA BIOENERGY
97
GRI Index
GRI Index
ABENGOA BIOENERGY
98
GRI Index
GRI Index (I)
Índice GRI
Definition
Indicador
Cross-reference/Direct answer
Reported
3-4
3-4
√
√
Part Not Reported
Reason for omission
1. Strategy and Analysis
1,1
Statement from the most senior decision-maker of the
organization.
1,2
Description of key impacts, risks, and opportunities.
2. Organizational Profile
2,1
Name of the organization.
3
√
2,2
Primary brands, products, and/or services.
6
√
2,3
Operational structure of the organization, including main
divisions, operating companies, subsidiaries, and joint ventures.
12-19,73-78
√
2,4
Location of organization's headquarters.
9
√
2,5
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.
2,6
Nature of ownership and legal form.
2,7
Markets served (including geographic breakdown, sectors served,
and types of customers/beneficiaries).
2,8
Scale of the reporting organization.
2,9
2,10
20
√
32-33
√
9,12-14
√
7
√
31
89
√
√
83-84
√
83-84
√
Significant changes during the reporting period regarding size,
structure, or ownership.
Awards received in the reporting period.
3. Report Parameters
Reporting period (e.g., fiscal/calendar year) for information
3,1
provided.
3,2
Date of most recent previous report (if any).
3,3
3,4
Reporting cycle (annual, biennial, etc.)
83-84
√
Contact point for questions regarding the report or its contents.
83-84
√
3,5
Process for defining report content.
83-85
√
3,6
Boundary of the report (e.g., countries, divisions, subsidiaries,
leased facilities, joint ventures, suppliers).
83-84
√
3,7
State any specific limitations on the scope or boundary of the
report (see completeness principle for explanation of scope).
83-84
√
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.
84-86
√
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.
84-86
Partially
3,10
Explanation of the effect of any re-statements of information
provided in earlier reports, and the reasons for such re-statement
(e.g.,mergers/acquisitions, change of base years/periods, nature of
business, measurement methods).
83-84
√
3,11
Significant changes from previous reporting periods in the scope,
boundary, or measurement methods applied in the report.
83-85
√
3,12
Table identifying the location of the Standard Disclosures in the
report.
99-104
√
3,13
Policy and current practice with regard to seeking external
assurance for the report.
84-85, 92-95
√
ABENGOA BIOENERGY
99
Bases of calculations, Including
assumptions and techniques
underlying estimations applied to the
compilation of the Indicators and
other information in the report.
Proprietary information:
Detailed Information for
the purposes of the
report.
GRI Index
GRI Index (II)
Definition
Indicador
Reported
73-76
√
73
√
4,3
For organizations that have a unitary board structure, state the
number of members of the highest governance body that are
independent and/or non-executive members.
73
√
4,4
Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.
28-30
√
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).
4,6
Processes in place for the highest governance body to ensure
conflicts of interest are avoided.
4,7
Process for determining the qualifications and expertise of the
members of the highest governance body for guiding the
organization's strategy on economic, environmental, and social
topics.
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.
24-25, 34,40, 48-49
√
4,9
Procedures of the highest governance body for overseeing the
organization's identification and management of economic,
environmental, and social performance, including relevant risks
and opportunities, and adherence or compliance with
internationally agreed standards, codes of conduct, and principles.
74-78
√
4,10
Processes for evaluating the highest governance body's own
performance, particularly with respect to economic, environmental,
and social performance.
75
√
4,11
Explanation of whether and how the precautionary approach or
principle is addressed by the organization.
77-81
√
4,12
Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes
or endorses.
64-67
√
Part Not Reported
Reason for omission
4. Governance, Commitments, and Engagement
4,1
4,2
4,13
4,14
4,15
4,16
4,17
Governance structure of the organization, including committees
under the highest governance body responsible for specific tasks,
such as setting strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also
an executive officer.
_
74-78
List of stakeholder groups engaged by the organization.
Basis for identification and selection of stakeholders with whom
to engage.
Approaches to stakeholder engagement, including frequency of
engagement
type andthat
by stakeholder
group.through
Key
topics andbyconcerns
have been raised
stakeholder engagement, and how the organization has
responded to those key topics and concerns, including through its
reporting.
ABENGOA BIOENERGY
√
_
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.
67
√
28-29
√
28
√
28-30
Partially
28-30, 40-44
√
100
Too detailed information
for the purpose of the
report
Too detailed information
report
Including frequency of engagement by Too detailed information
type and by stakeholder group.
GRI Index
GRI Index (III)
Definition
Indicador
Reported
Part Not Reported
Reason for omission
Disclosure on Management Approach EC
DMA EC
Disclosure on Management Approach EC
3-4, 20, 70-71
Partially
Indirect economic impacts
Not Available: Too
detailed information for
the purpose of the report
DMA EN
Disclosure on Management Approach EN
3-4, 6, 24, 12-19, 34-38, 4858
Partially
Materials, Energy, Water (Estrategy ,
goals and Trainning)
We do not report on this
disclosure since the
information is too
DMA LA
Disclosure on Management Approach LA
6, 33-41
√
DMA HR
Disclosure on Management Approach HR
34-38, 40, 45-46, 62-64, 6768
Partially
Investment and procurement practices We do not report on this
(Goals)
disclosure since the
information is proprietary
DMA SO
Disclosure on Management Approach SO
67-68
Partially
Anti Competitive behavior
DMA PR
Disclosure on Management Approach PR
14-15, 42-43, 67-68
√
Reported
63, 70-71
√
3-4, 48-49
√
Indicador
Definition
Part Not Reported
Not Material: Too
Reason for omission
Economic performance
EC1
EC2
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.
Financial implications and other risks and opportunities for the
organization's activities due to climate change.
EC3
Coverage of the organization's defined benefit plan obligations.
EC4
Significant financial assistance received from government.
40-41
Partially
9-10, 70-71
√
Whether the pension's liabilities will
be fully covered and if not, provide an
explanation of the strategy and
Not Material: Too
possible timescale adopted by the
employer to work towards full
coverage; The level of participation in
retirement plans; The aggegrate totals
of plan coverage.
Market presence
EC5
Range of ratios of standard entry level wage compared to local
minimum wage at significant locations of operation.
39
√
EC6
Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation.
44
Partially
The factors that influence supplier
Not Material: Too
selection (e.g. costs, environmental
and social performance) in addition to
their geographic location.
EC7
Procedures for local hiring and proportion of senior management
hired from the local community at significant locations of
operation.
39
Partially
When there is a policy or there are
common practices: the definition of
'senior management' used.
EC8
Development and impact of infrastructure investments and
services provided primarily for public benefit through commercial,
in-kind, or pro bono engagement.
63
Partially
EC9
Understanding and describing significant indirect economic
impacts, including the extent of impacts.
ABENGOA BIOENERGY
_
101
Not Material: Too
Whether the organization conducted a
Not Material: Too
community needs assessment to
determine infrastructure and other
services need.
Not Material: Too
GRI Index
GRI Index (IV)
Indicador
Definition
Reported
50-52
50
√
√
Part Not Reported
Reason for omission
Environmental
EN1
EN2
Materials used by weight or volume.
Percentage of materials used that are recycled input materials.
Energy
EN3
Direct energy consumption by primary energy source.
53
√
EN4
EN5
Indirect energy consumption by primary source.
Energy saved due to conservation and efficiency improvements.
Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements as a
result of these initiatives.
53
53
√
√
53
√
Initiatives to reduce indirect energy consumption and reductions
achieved.
59
√
EN8
EN9
Total water withdrawal by source.
Water sources significantly affected by withdrawal of water.
54
54
√
√
EN10
Percentage and total volume of water recycled and reused.
54
√
EN11
Location and size of land owned, leased, managed in, or adjacent
to, protected areas and areas of high biodiversity value outside
protected areas.
54
√
EN12
Description of significant impacts of activities, products, and
services on biodiversity in protected areas and areas of high
biodiversity value outside protected areas.
54
√
EN13
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
EN15
species with habitats in areas affected by operations, by level of
extinction risk.
Emissions, effluents and waste
54
√
EN14
54
√
54
√
EN16
EN17
Total direct and indirect greenhouse gas emissions by weight.
Other relevant indirect greenhouse gas emissions by weight.
55
55
√
√
EN18
Initiatives to reduce greenhouse gas emissions and reductions
achieved.
55
√
EN19
Emissions of ozone-depleting substances by weight.
55
√
EN20
NOx, SOx, and other significant air emissions by type and weight.
56
Partially
EN21
Total water discharge by quality and destination.
56
√
EN22
Total weight of waste by type and disposal method.
57
Partially
EN23
Total number and volume of significant spills.
58
√
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.
58
√
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.
58
√
EN6
EN7
Water
Biodiversity
The weight of significant air emissions
Not Material: Too
(in kilograms or multiples such as
tonnes) for persistent organic
pollutants (POP).
Not Material: Too
How the method of disposal has been
determined.
Products and services
EN26
Initiatives to mitigate environmental impacts of products and
services, and extent of impact mitigation.
59
Partially
Report quantitatively the extent to
Not Material: Too
which environmental impacts of
products and services have been
mitigated during the reporting period.
EN27
Percentage of products sold and their packaging materials that are
reclaimed by category.
12
Partially
How the data for this Indicator has
been collected.
Not Material: Too
EN28
Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with environmental laws
and regulations.
59
Partially
Number of non-monetary sanctions.
Not Material: Too
EN29
Significant environmental impacts of transporting products and
other goods and materials used for the organization's operations,
and transporting members of the workforce.
58
Partially
The criteria and methodology used to
determine which environmental
impacts are significant.
Not Material: Too
Total environmental protection expenditures and investments by
type.
60
√
Compliance
Overall
EN30
ABENGOA BIOENERGY
102
GRI Index
GRI Index (V)
Indicador
LA1
Definition
Total workforce by employment type, employment contract, and
region.
LA2
Total number and rate of employee turnover by age group,
gender, and region.
LA3
LA4
LA5
LA6
Cross-reference/Direct
answer
Reported
33,38
√
33
Partially
Benefits provided to full-time employees that are not provided to
temporary or part-time employees, by major operations.
40-41
√
Percentage of employees covered by collective bargaining
agreements.
40-41
√
40-41
√
34
√
Minimum notice period(s) regarding significant operational
changes, including whether it is specified in collective agreements.
Percentage of total workforce represented in formal joint
management-worker health and safety committees that help
monitor and advise on occupational health and safety programs.
LA7
Rates of injury, occupational diseases, lost days, and absenteeism,
and number of work-related fatalities by region.
37-38
Partially
LA8
Education, training, counseling, prevention, and risk-control
programs in place to assist workforce members, their families, or
community members regarding serious diseases.
37-38
√
LA9
Health and safety topics covered in formal agreements with trade
unions.
LA10
Average hours of training per year per employee by employee
category.
LA11
Programs for skills management and lifelong learning that
support the continued employability of employees and assist them
in managing career endings.
LA12
Percentage of employees receiving regular performance and career
development reviews.
LA13
Composition of governance bodies and breakdown of employees
per category according to gender, age group, minority group
membership, and other indicators of diversity.
LA14
Ratio of basic salary of men to women by employee category.
HR1
Percentage and total number of significant investment agreements
that include human rights clauses or that have undergone human
rights screening.
HR2
Part Not Reported
Reason for omission
Total number of employees leaving
employment during the reporting
period broken down by gender./Total
number of employees leaving
period broken down by age group./Rate
Not Material: Too
of employees leaving employment
during the reporting period broken
down by age group./Total number of
employees leaving employment during
the reporting period broken down by
region./Rate of employees leaving
period broken down by region.
Independent contractors working onsite to whom the reporting organization
is liable for the general safety of the
working environment by region./Injury
rate (IR) by region./Occupational
diseases rate (ODR) by region./Lost day
rate (LDR) by region.
Not material: The Injury
and Lost day rate are
available in the report but
not by region.
Not Material: Too
_
Not Material: Too
Partially
Average number of hours of training
per year per employee category.
35-38
Partially
Whether transition assistance programs
to support employees who are retiring
or who have been terminated provide
Not Material: Too
any pre-retirment planning for intended detailed information for
retirees; any retraining for those
intending to continue working; any
severance pay
36
√
37
The percentage of employees in
minority groups./The percentage of
employees by age group (under 30; 3050; over 50)./The percentage of
Not Material: Too
individuals within the organization's
governance bodies in minority
groups./The percentage of individuals
within the organization's governance
bodies by age group (under 30; 30-50;
over 50).
73-76
Partially
38
√
45-46
Partially
Percentage of significant investment
Not Material: Too
agreements that include human rights
clauses or that underwent human rights
screening.
Percentage of significant suppliers and contractors that have
undergone screening on human rights and actions taken.
45-46
Partially
The percentage of contracts with
significant suppliers and contractors
Not Material: Too
that were either declined or imposed
performance conditions, or were subject
to other actions as a result of human
rights screening.
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.
37-38
Partially
The percentage of employees in the
reporting period trained in policies and
procedures concerning aspects of
human rights that are relevant to
operations.
Not Material: Too
HR4
Total number of incidents of discrimination and actions taken.
41
√
HR5
Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk,
and actions taken to support these rights.
40
√
HR6
Operations identified as having significant risk for incidents of
child labor, and measures taken to contribute to the elimination of
child labor.
34,41
√
HR7
Operations identified as having significant risk for incidents of
forced or compulsory labor, and measures to contribute to the
elimination of forced or compulsory labor.
34,41
√
N/A
Not Material: Too
HR8
HR9
Percentage of security personnel trained in the organization's
policies or procedures concerning aspects of human rights that are
relevant to operations.
Total number of incidents of violations involving rights of
indigenous people and actions taken.
ABENGOA BIOENERGY
_
38
103
√
GRI Index
GRI Index (VI)
Indicador
Definition
Cross-reference/Direct
answer
Reported
63-66
√
38
√
SO1
Nature, scope, and effectiveness of any programs and practices
that assess and manage the impacts of operations on
communities, including entering, operating, and exiting.
SO3
Percentage of employees trained in organization's anti-corruption
policies and procedures.
SO4
Actions taken in response to incidents of corruption.
67-68
√
SO5
Public policy positions and participation in public policy
development and lobbying.
68
√
SO6
Total value of financial and in-kind contributions to political
parties, politicians, and related institutions by country.
68
√
SO7
Total number of legal actions for anti-competitive behavior, antitrust, and monopoly practices and their outcomes.
SO8
Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with laws and regulations.
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.
PR2
_
68
√
12-15
√
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.
15
√
PR3
Type of product and service information required by procedures,
and percentage of significant products and services subject to
such information requirements.
15
√
PR4
voluntary codes concerning product and service information and
labeling, by type of outcomes.
15
√
PR5
Practices related to customer satisfaction, including results of
surveys measuring customer satisfaction.
42
√
PR6
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising,
promotion, and sponsorship.
68
√
PR7
voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes.
68
√
43
√
43
√
PR8
PR9
Total number of substantiated complaints regarding breaches of
customer privacy and losses of customer data.
Monetary value of significant fines for non-compliance with laws
and regulations concerning the provision and use of products and
services.
ABENGOA BIOENERGY
104
Part Not Reported
Reason for omission
Not applicable: Too
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