It gives me great pleasure, for another year, to present our annual sustainability report, which allows us to share our challenges, undertakings and progress in the sustainability field with stakeholders, and the drafting of which has required significant internal consultations.

As a company dedicated to the distribution of natural gas, 2022 was clearly affected by the war in Ukraine. Thus, we had to contend with a huge increase in gas prices, which reached record levels in August, and the clear vulnerability of Europe due to its energy-dependence in a wholly unexpected scenario. This reality, together with Europe’s firm commitment to combat climate change, has accelerated the energy transition process.

Madrileña Red De Gas has played a key role in the energy transition process for a number of years. We have taken in part in innovative projects of interest in this field, the medium- to long-term aim of which is to transform our natural gas distribution network to one for renewable gases, such as H2, as a clear alternative in this transition. The energy crisis and the increase in social and governmental awareness show us that we are on the right path. In 2022 we have consolidated projects that we had started to launch in previous years. We hope that, for us, the energy transition is an opportunity rather than a risk.

Also in 2022, we have reached important milestones in our sustainability strategy. We have once again applied for a GRESB 2022 Infrastructure Sustainability rating, obtaining the highest “five-star” classification for the second year running, with an excellent outcome in the international benchmarking: we were rated in second position in the European gas infrastructure company rankings, and were the leaders in Spain, with a score of 96 out of 100.

We would also like to highlight our efforts to establish sustainable financing instruments. For the first time, we have reaffirmed our commitment to sustainability via our main financial institutions, by entering into a loan agreement linked to sustainability performance, thereby improving our average debt costs and strengthening our competitive position. This bond is linked to the score obtained in the GRESB ratings.

In 2022 we have also undertaken an in-depth review of our sustainability-related materiality. To that end, we have taken into account a double-materiality approach, looking at both the importance of material aspects as regards their impact on the environment and stakeholders and their impact on our business. In that regard, we have taken into account the opinion of our stakeholders, who we have invited to participate as part of an interview- and questionnaire-based process.

This double-materiality approach has clearly led to the renewal of our list of relevant aspects. The studies conducted to obtain the materiality and their findings should allow us to update our sustainability strategy in 2023 and define our Sustainability Master Plan 2023–2026.

Other elements that I would like to highlight as part of our efforts in 2022 include the sign-off of our Equality Plan 2022–2026, which aims to continue our improvements in applying the principle of equality between men and women, the certification of our Information Security System as per standard ISO 27001, and the verification our first scope 3 carbon footprint report.
With regard to our commitment to Human Rights, this is clearly reflected in our Code of Ethics, although during 2022 we have started to work on a Human Rights Policy, which we hope to implement in 2023, to set out our commitment to respect and promote said rights in all our operations, as well as a Sustainable Purchasing Policy.

In this report we present all the progress made in 2022, and hope that it proves useful and of interest for all our stakeholders, allowing them to gain greater insight into our commitment to sustainable development.

 

Pedro Mielgo