11.1 Reporting principles
This is the third annual report published by Madrileña Red de Gas. It corresponds to the financial year 2022 and was published in June 2023.
This report has been drafted in compliance with GRI Standards, specifically the Universal Standards GRI 1: Foundation, GRI 2: General Disclosures 2021 and GRI 3: Material Topics 2021, the topic standards applicable to our material topics and the Sector Standard GRI-11: Oil and Gas Sector 2021.
The principles for drafting this report, as set out in GRI 1: Foundation 2021, are described below.
- Accuracy
The information contained in this report has been checked and is sufficiently detailed to allow an evaluation of the impacts caused by the activity carried out by MRG.
All the information provided covers the reporting period, as well as its evolution over the last three years (2020, 2021 and 2022). - Balance
The information presented fairly represents the positive and negative impacts of the organization, without bias. Trends that allow us to determine the evolution of the different topics over time are also presented.The priority of each topic is revealed by the degree of detail for each aspect.
- Clarity
The information is presented in an accessible and understandable manner, structured in the form of tables and diagrams and including graphic information to simplify reading and understanding. - Comparability
The information provided allows an analysis of the changes that have occurred in the company over time, as well as an analysis of the impacts with respect to other organizations. - Exhaustivity
The information provided is sufficient to be able to assess the impacts of MRG during the reporting period. - Sustainability context
The report has been prepared based on the materiality review carried out in 2022, considering the internal and external sustainability context, together with the opinion of our stakeholders. The structure and contents present the impacts of Madrileña Red de Gas on the axes of sustainability—society, the environment and the economy—together with the policies, strategy and actions that we are carrying out, always within the framework of our commitment to sustainable development - Punctuality
It includes the activities of Madrileña Red de Gas in the period between 01 January 1 and 31 December 2022, and it is expected to be published annually. - Verifiability
The information contained herein is recorded, compiled and analysed in such a way that its veracity and quality can be ensured. Ensuring application of the principles for the elaboration of reports presented above.
The point of contact for questions related to this report and the information presented herein is: sostenibilidad@madrilena.es
11.1 Update of information in 2021 report
- The list of LPG plants in protected natural spaces has been modified. There are three plants in Las Rozas that were not included in said list in the 2021 report, despite being in said spaces.
- The data for average training hours for women in the 2021 report has been modified due to a calculation error. The correct value is 38.5 hours (corresponding to 1771 hours, given to women during 2021, among the 46 women on the workforce in that year).
- The data referring to the average hours of training by job category, corresponding to 2021, have been modified. Due to an error in the interpretation of GRI 404-1 Average hours of training per year per employee, the average workforce throughout the year was taken as the basis for the calculations rather than the workforce indicated in GRI 2.7 Employees.
11.3 Table of Contents GRI
| Declaration of use |
Madrileña Red de Gas has drafted this report for the period between 01 January 2022 and 31 December 2022 in compliance with GRI Standards.
Madrileña Red de Gas’ Board of Directors, as highest governance body, has reviewed and approved this report by way of its chair and representative. |
| GRI 1 used | GRI 1: Foundation 2021 |
| Sector Standards applicable | GRI 11: Oil and Gas Sector 2021 |
| GRI standard/ Other source |
Contents | Location | Omission | GRI sector standard Ref. No. |
| General contents | ||||
| GRI 2: General Disclosures 2021 | 2.1 Organisational details | 2.1. About us | ||
| 2.2 Entities included in the organization’s sustainability reporting | 11.1. Reporting principles | |||
| 2.3 Reporting period, frequency and contact point | 11.1. Reporting principles | |||
| 2.4. Restatements of information | 11.2. Restatement of information in 2021 report | |||
| 2.5. External assurance | 11.4. External assurance | |||
| 2.6 Activities, value chain and other business relationships | 2.3. Our value chain 7. Supply Chain |
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| 2.7 Employees | 10.1. Our human assets | |||
| 2.8 Workers who are not employees | 10.1. Our human assets 10.5.8. Coordination of business activities |
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| 2.9 Governance structure and composition | 3.1. Corporate Governance 10.4.1. Diversity and workplace inclusion |
Incomplete information The number of other positions and significant commitments of each member and the nature of the commitments, under-represented social groups, as well as the relevant competencies for the impacts of the organization, are not available. Attempts will be made to compile this information for the next report. | ||
| 2.10 Nomination and selection of the highest governance body | 3.1. Corporate Governance | Incomplete information The criteria used to nominate and select the members of the highest governance body are not available. Attempts will be made to compile this information for the next report. | ||
| 2.11 Chair of the highest governance body | 3.1. Corporate Governance | |||
| 2.12 Role of the highest governance body in overseeing the management of impacts | 3.1. Corporate Governance 3.5. Incorporation of ESG criteria into the business strategy |
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| 2.13 Delegation of responsibility for managing impacts | 3.1. Corporate Governance 3.5. Incorporation of ESG criteria into the business strategy |
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| 2.14 Role of the highest governance body in sustainability reporting | 1. Letter from the chairman 3.5. Incorporation of ESG criteria into the business strategy |
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| 2.15 Conflicts of interest | 3.2.4. Prevention of corruption and conflicts of interest | |||
| 2.16 Communication of critical concerns | 3.2.3. Complaints channel 3.4. Transparency and communication 6.6.1. Complaints and claims management |
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| 2.17 Collective knowledge of the highest governance body | 3.5. Incorporation of ESG criteria into the business strategy | |||
| 2.18 Evaluation of the performance of the highest governance body | Information not available. There is currently no procedure for evaluating the performance of the highest governance body as regards oversight of the management of the organization’s impacts on the economy, the environment and people. Attempts will be made to compile this information for the next report. | |||
| 2.19 Remuneration policies | 3.1. Corporate Governance | |||
| 2.20 Process to determine remuneration | 3.1. Corporate Governance | |||
| 2.21 Annual total compensation ratio | 10.4.2. Remuneration | Information incomplete. When calculating the ratios, the highest paid person (CEO) has been excluded, as established in this GRI, although departmental heads have also been omitted (because this information is not available). Attempts will be made to compile this information for the next report. | ||
| 2.22 Statement on sustainable development strategy | 1. Letter from the chairman 3.5. Incorporation of ESG criteria into the business strategy 4.1. Main milestones 2022 4.2. Materiality analysis |
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| 2.23 Policy commitments | 3.2.1. Human Rights Due Diligence 3.2.2. Code of ethics 3.5. Incorporation of ESG criteria into the business strategy 4.1. Main milestones 2022 4.4. Commitment with stakeholders https://madrilena.es/compromiso/ |
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| 2.24 Embedding policy commitments | 3.2. Ethical behaviour 3.3. Compliance |
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| 2.25 Processes to remediate negative impacts | 3.2.3. Complaints channel 6.6.1. Complaints and claims management |
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| 2.26 Mechanisms for seeking advice and raising concerns | 3.2.3. Complaints channel 3.4. Transparency and communication 6.6. Orientation to customer |
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| 2.27 Compliance with laws and regulations | 3.3. Compliance | |||
| 2.28 Membership associations | 4.4. Commitment to stakeholders 5.3. Regulatory risk 6.3. Network expansion: in the present but looking to the future 6.4. Striving for innovation, favouring the future of renewable gases 7.1. Ethics, confidence and transparency with our supply chain 8.3.1. Methane Emissions 8.3.3. Commitment to emissions reduction and energy efficiency 10.5.5. Dialogue with stakeholders |
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| 2.29 Approach to stakeholder engagement | 4.2. Materiality analysis 4.4. Commitment with stakeholders 6.6. Orientation to customer 9.2. Always close and willing to listen 10.2.3. Work environment 10.5.4. Consultation and participation 10.2.1. Labour Relations |
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| 2.30 Collective bargaining agreements | 10.2.1. Labour Relations | |||
| Material topics | ||||
| GRI 3: Material Topics 2021 | 3-1 Process to determine material topics | 4.2. Materiality analysis | ||
| 3-2 List of material topics | 4.2. Materiality analysis | |||
| Ethics and anti-corruption | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 3.2. Ethical behaviour | 11.12 Forced labour and modern slavery 11.20 Anti-corruption 11.22 Public policy |
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| GRI 205: Anti-corruption 2016 | 205-1 Operations assessed for risks related to corruption | 3.2.4. Prevention of corruption and conflicts of interest | ||
| 205-2 Communication and training about anti-corruption policies and procedures | 3.2.4. Prevention of corruption and conflicts of interest 3.3.2. Commitment, raising awareness and training |
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| 205-3 Confirmed incidents of corruption and actions taken | 3.2.4. Prevention of corruption and conflicts of interest | |||
| Legal compliance | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 3.3. Compliance | ||
| GRI 2: General Disclosures 2021 | 2.27 Compliance with laws and regulations | 3.3. Compliance | ||
| Incorporation of ESG criteria into the strategy and decision-making | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 3.5. Incorporation of ESG criteria into the business strategy | ||
| Own | Letter from the chairman | 1. Letter from the chairman | ||
| Adaptation to climate, resilience and transition | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 5.2. Climate change and the energy transition: our main challenge | 11.2 Adaptation to climate, resilience and transition | |
| GRI 201: Economic performance 2016 | 201-2 Financial implications and other risks and opportunities due to climate change | 5.2. Climate change and the energy transition: our main challenge | Information incomplete. No information regarding the cost of the measures taken to manage risk or opportunity are available. Attempts will be made to compile this information for the next report. | |
| Own | Innovation and green-energy projects | 6.4. Striving for innovation, favouring the future of renewable gases | ||
| Integrity of assets and management of critical incidents | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 5.4. Integrity of assets and management of critical incidents | 11.8 Integrity of assets and management of critical incidents | |
| GRI 416: Customer Health and Safety 2016 | 416-1 Assessment of the health and safety impacts of product and service categories | 5.4. Integrity of assets and management of critical incidents | ||
| Cybersecurity | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 5.5. Cybersecurity and management of risks when treating information | ||
| Own | Certification Information Security Management System as per standard ISO 27001 | 5.5.1. Information Security and Personal Data Protection | ||
| Evaluation of the maturity level based on Deloitte’s CyberIndustrial Strategy Framework (CISF) v2.0 | 5.5.2. Cybersecurity | |||
| Re-evaluation of the maturity level of the OT (Operational Technologies) environment using the C2M2 standard | 5.5.2. Cybersecurity | |||
| Cybersecurity Action Plan 2022 | 5.5.2. Cybersecurity | |||
| Economic and financial risks | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 5.3. Economic, financial and fiscal risks | ||
| Own | Audit of annual accounts. | 5.3. Economic, financial and fiscal risks | ||
| Regulatory risks | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 5.1. Regulatory risk | ||
| GRI 2: General Disclosures 2021 | 2.28 Membership associations | 5.1. Regulatory risk | ||
| Creation of economic and financial value | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 6.2. Generating economic value | ||
| GRI 201: Economic performance 2016 | 201-1 Direct economic value generated and distributed | 6.2. Generating economic value | ||
| GRI 203: Indirect economic impacts 2016 | 203-2 Significant indirect economic impacts | 6.2. Generating economic value | ||
| Development and extension of the distribution network | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 6.3. Network expansion: in the present but looking to the future | ||
| GRI 203: Indirect economic impacts 2016 | 203-1 Infrastructure investments and services supported | 9.1. Facilitating access to energy | ||
| Own | Evolution of natural gas supply points | 6.3. Network expansion: in the present but looking to the future | ||
| Supply reliability and continuity | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 6.5. Reliability and continuity of supply | ||
| Own | Emergency response system and indicators | 6.5. Reliability and continuity of supply | ||
| Maintenance plan | 6.5. Reliability and continuity of supply | |||
| Orientation to customer | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 6.6. Orientation to customer | ||
| Own | Platforms for communicating with customers | 6.6. Orientation to customer | ||
| Evolution of the satisfaction score in customer surveys | 6.6. Orientation to customer | |||
| Extension of ESG criteria to supply chain | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 7.2. Ethics, confidence and transparency with our supply chain | 11.12 Forced labour and modern slavery 11.13 Freedom of association and collective bargaining |
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| GRI 407: Freedom of association and collective Bargaining 2016 | 407-1 Operations and suppliers where the right to freedom of association and collective bargaining may be at risk | 7.2. Ethics, confidence and transparency with our supply chain | ||
| 408: Child labour 2016 | 408-1 Operations and suppliers with significant risk of cases of child labour | 7.2. Ethics, confidence and transparency with our supply chain | ||
| 409: Forced or mandatory labour 2016 | 409-1 Operations and suppliers with significant risk of cases of forced or mandatory labour | 7.2. Ethics, confidence and transparency with our supply chain | ||
| ESG criteria in purchasing decision-making | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material topics | 7.3. Sustainable purchasing: shared goals and commitments | 11.12 Forced labour and modern slavery 11.13 Freedom of association and collective bargaining |
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| GRI 308: Supplier Environmental Assessment 2016 | 308-1 New suppliers that were screened using environmental criteria | 7.3. Sustainable purchasing: shared goals and commitments | ||
| 308-2 Negative environmental impacts in the supply chain and actions taken | 7.3. Sustainable purchasing: shared goals and commitments | |||
| GRI 414: Supplier Social Assessment 2016 | 414-1 New suppliers that were screened using social criteria | 7.3. Sustainable purchasing: shared goals and commitments | ||
| 414-2 Negative social impacts in the supply chain and actions taken | 7.3. Sustainable purchasing: shared goals and commitments | |||
| Promotion of local purchasing | ||||
| GRI 3: Material Topics 2021 | 3.3. Management of material topics | 7.4. Promotion of local purchasing | 11.14. Economic impacts | |
| GRI 204: Procurement practices 2016 | 204-1 Proportion of spending on local suppliers | 7.4. Promotion of local purchasing | ||
| Emissions, pollution and fight against climate change | ||||
| GRI 3: Material Topics 2021 | 3.3. Management of material topics | 8.3. Atmospheric Emissions: measurement and reduction commitment | 11.1 GHG Emissions 11.3 Emissions to air |
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| GRI 305: Emissions 2016 | 305-1 Direct (Scope 1) GHG emissions | 8.3.2. Our carbon footprint: measurement and verification | ||
| 305-2 Energy indirect (Scope 2) GHG emissions | 8.3.2. Our carbon footprint: measurement and verification | |||
| 305-3 Other indirect (Scope 3) GHG emissions | 8.3.2. Our carbon footprint: measurement and verification | |||
| Own | Carbon footprint mitigation plan | 8.3.3. Commitment to reduce emissions and energy efficiency | ||
| Access to energy and economic impact | ||||
| GRI 3: Material Topics 2021 | 3.3. Management of material topics | 9.1. Facilitating access to energy | 11.14. Economic impacts | |
| GRI 201: Economic performance 2016 | 201-1 Direct economic value generated and distributed | 6.2. Generating economic value | ||
| GRI 203: Indirect economic impacts 2016 | 203-1 Infrastructure investments and services supported | 9.1. Facilitating access to energy | ||
| Occupational health and safety | ||||
| GRI 3: Material Topics 2021 | 3.3 Management of material topics | 10.5. Occupational Health and Safety | 11.9 Occupational Health and Safety | |
| GRI 403: Occupational Health and Safety 2018 | 403-1 Occupational health and safety management system | 10.5. Occupational Health and Safety | ||
| 403-2 Hazard identification, risk assessment, and incident investigation | 10.5.6. Hazard identification and risk assessment | |||
| 403-3 Occupational health services | 10.5.9. Health monitoring and promotion | |||
| 403-4 Worker participation, consultation, and communication on occupational health and safety | 10.5.4. Consultation and participation | |||
| 403-5 Worker training on occupational health and safety | 10.5.10. Health and safety training | |||
| 403-6 Promotion of worker health | 10.5.9. Health monitoring and promotion | |||
| 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | 10.5.8. Coordination of business activities | |||
| 403-8 Workers covered by an occupational health and safety management system | 10.5. Occupational Health and Safety | |||
| 403-9 Work-related injuries | 10.5.7. Work accidents | |||
| 403-10 Work-related ill health | 10.5.7. Work accidents | |||
| Topics in applicable GRI Sector Standards not considered to be material | ||
| Title GRI Sector Standard | Topic | Explanation |
| GRI 11: Oil and Gas Sector 2021 | 11.17 Rights of indigenous people | The scope of action of MRG, namely the Autonomous Community of Madrid, and the fact that its suppliers are essentially local, means that we consider this material impact to be non-existent. |
| 11.19 Unfair competition | As the business of Madrileña Red de Gas is regulated, unfair competition would be directly related to corruption. | |
| 11.21 Payments to governments | Given the regulations applicable to MRG in Spain, we would again strictly be speaking about corruption. | |
| Topics in applicable GRI Sector Standards not considered to be material | ||
| Title GRI Sector Standard | Topic | Location |
| GRI 11: Oil and Gas Sector 2021 | 11.4 Biodiversity | 8.5. Biodiversity |
| 11.5 Waste | 8.4.1. Waste | |
| 1.6 Water and effluents | 8.2. Resource use | |
| 11.7 Closure and rehabilitation | 7.5. Adaptation to changes in our value chain | |
| 11.10 Employment practices | 10.1. Our human assets 10.2. Conciliation, working conditions and well-being 10.3. Talent management |
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| 11.11 Non-discrimination and equality of opportunities | 10.4. Diversity, Equity and Inclusion | |
| 11.15 Local communities | 9.1. Facilitating access to energy 9.2. Always close and willing to listen |
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| 11.16 Rights to land and resources | 9.2. Always close and willing to listen | |
| 11.18 Conflicts and security | 9.2. Always close and willing to listen | |
11.7 External assurance
To ensure compliance with the principles and guidelines specified by GRI, and that the information presented herein is accurate, this report has been submitted to external and independent verification by the auditing and certification entity Bureau Veritas S.A, with the secretary of the Audit and Risks Committee actively participating in said process on behalf of the highest governance body.
Said entity confirms the conformity of this sustainability report with the principles and guidelines specified in the GRI Standards and the reliability of the information contained therein.
