11.1 Reporting principles
This is the third annual report published by Madrileña Red de Gas. It corresponds to 2023 and was published in June 2024.
This report has been prepared in accordance with GRI Standards, especially the Universal Standards GRI 1: Fundamentals 2021, GRI 2: General Contents 2021 and GRI 3: Material Topics 2021, the applicable Thematic Standards in accordance with our material topics, and the Sector Standard GRI-11 Oil and Gas Sector 2021.
The principles for the preparation of this report, as set out in GRI Standard 1: Fundamentals 2021, are described below.
Accuracy
The information contained in the report has been checked and is sufficiently detailed to enable an assessment to be made of the impacts caused by the activities carried out by Madrileña Red de Gas.
All information provided covers the reporting period and its evolution over the last three years (2021, 2022 and 2023).
Balance
The information presented fairly represents the positive and negative impacts of the organisation, without bias. Trends are also presented to show the evolution of the different themes over time.
The priority of each topic is evident in the level of detail for each aspect.
Clarity
The information is presented in a way that is accessible and understandable, structured in the form of tables and diagrams and including graphical information to simplify reading and comprehension.
Comparability
The information provided allows analysis of the changes that have occurred in the company over time, as well as analysis of the impacts with respect to other organisations.
Completeness
The information provided is sufficient to be able to assess the impacts of Madrileña Red de Gas during the reporting period.
Sustainability context
The report has been prepared based on the materiality review conducted in 2023, considering the internal and external sustainability context, together with the voice 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 covers the activities of Madrileña Red de Gas in the period from 1 January to 31 December 2023, and is expected to be published annually.
Verifiability
The information collected is recorded, compiled and analysed in a way that ensures its accuracy and quality, thereby ensuring application of the reporting principles outlined above.
The contact point for questions relating to this report and the information presented is: sostenibilidad@madrilena.es
11.1 Information update
- With regard to the type of working hours in the 2022 and 2021 reports, we consider “short-time workers” to be included in “full-time” workers. However, in order to avoid misinterpretation, we have decided to present the data separately for all years, as shown in Section 10.1 Our human capital. (GRI 2-7 Employees 2021)
- During calculation of the ratio of total annual compensation and the ratio of the percentage increase of the highest paid person in the organisation to the median of all employees, this is the first year in which the Management category is included in the calculation of both ratios. (GRI 2-21 Annual total compensation ratio 2021)
- With regard to the amount of non-hazardous waste generated during the previous year (2022), due to a transcription error, a total of 4240 tonnes was reported, when the correct value should be 46,240 tonnes. This error has already been corrected in this report, as have the calculations associated with it. (GRI 306-3 Waste generated 2020)
- With regard to the nationality of our workforce, the value of 5% published for the year 2022 also included employees who, although born outside Spain, already have Spanish nationality. We believe it is more convenient not to consider these cases within this percentage, so in section 10.5 Commitment to Diversity, Equity and Inclusion in governing bodies and employees, we show the data corresponding to 2020, 2021 and 2023 considering this criterion. (GRI 405-1 Diversity of governance bodies and employees 2016)
11.3 GRI Content Index
| Declaration of use |
Madrileña Red de Gas S.A.U. has prepared this report in accordance with the GRI Standards for the period from 1 January 2023 to 31 December 2023. The Board of Directors of Madrileña Red de Gas, as the highest governance body, has reviewed and approved this report through its chairman and representative. |
| GRI 1 used | GRI 1: Foundation 2021 |
| Sector Standards applicable | GRI 11: Oil and Gas Sector 2021 |
Please refer to the pdf version of this sustainability report document for the exact location of the contents mentioned in the GRI index on the pages indicated there.
| GRI STANDARD / OTHER SOURCE |
CONTENT | LOCATION | OMISSION | REF. No. FOR GRI SECTOR STANDARD |
| General contents | ||||
| GRI 2: General Content 2021 | 2.1 Organisational details | Page 6 | A grey cell indicates something that does not apply. This is only applicable to the columns "Omission" and "Ref. no.” of the GRI Sector Standard | |
| 2.2 Entities covered by sustainability reporting | Page 146 | |||
| 2.3 Reporting period, frequency and point of contact | Pages 146 and 147 | |||
| 2.4 Updating information | Page 147 | |||
| 2.5 External verification | Page 158 | |||
| 2.6 Activities, value chain and other business relationships | Pages 96, 97 and 98 | |||
| 2.7 Employees | Pages 124 and 125, | |||
| 2.8 Non-employee workers | Page 126 | |||
| 2.9 Governance structure and composition | Pages 9, 10, 11, 12, 14, 16, 17 | |||
| 2.10 Appointment and selection of the highest governance body | Page 11 | |||
| 2.11 Chairperson of the highest governing body | Page 11 | |||
| 2.12 Role of the highest governance body in overseeing the management of impacts | Pages 12, 13, 14, 15, 22, 35 | |||
| 2.13 Delegation of responsibility for impact management | Pages 13, 15, 20, 23, 24, 32, 50 | |||
| 2.14 Role of the highest governance body in sustainability reporting | Pages 13 and 15 | |||
| 2.15 Conflicts of interest | Page 24 | |||
| 2.16 Reporting critical concerns | Pages 25, 26, 32, 121, 122, 123 | |||
| 2.17 Collective knowledge of the highest governance body | Pages 13, 14, 31 | |||
| 2.18 Performance evaluation of the highest governing body | Information not available. There is currently no procedure in place to evaluate the performance of the highest governance body in overseeing the management of the organisation's impacts on the economy, the environment and people. In 2023, proposals have been presented and analysed within the Board to improve the process of evaluating its performance, through internal self-assessment and external verification to be undertaken in future years. | |||
| 2.19 Remuneration policies | Pages 16, 17 | |||
| 2.20 Process for determining remuneration | Pages 16, 17 | |||
| 2.21 Total annual compensation ratio | Pages 133, 134 | |||
| 2.22 Sustainable development strategy statement | Pages 4, 5 | |||
| 2.23 Commitments and policies | Pages 19, 20, 21, 22, 32, 33 "https://madrilena.es/sostenibilidad/ |
|||
| 2.24 Mainstreaming commitments and policies | Pages 19, 20, 22, 99, 100 | |||
| 2.25 Processes for remedying negative impacts | Pages 117, 118,119, 120, 121, 122, 123 https://madrilena.es/compromiso/ |
|||
| 2.26 Mechanisms for seeking advice and raising concerns | Pages 25, 26, 32, 33, 52, 100, 121, 122 "https://www.canaldedenuncias.com/es/madrilena |
|||
| 2.27 Compliance with legislation and regulations | Page 19 | |||
| 2.28 Membership of associations | Pages 65, 66, 68, 70, 102, 123, 140 | |||
| 2.29 Approach to Stakeholder Engagement | Pages 32, 33, 38, 50, 51, 52, 74, 114, 117, 119, 121, 122, 127, 128, 138 | |||
| 2.30 Collective bargaining agreements | Page 126 | |||
| Material topics | ||||
| GRI 3: Material topics 2021 | 3-1 Process for determining material issues | Pages 35, 36, 37, 38 | ||
| 3-2 List of material items | Page 39 | |||
| Ethics and compliance | ||||
| GRI 3: Material topics 2021 | 3-3 Management of material issues | Pages 18-31 | ||
| GRI 409: Forced or compulsory Labour 2016 | 409-1 Operations and suppliers with significant risk of cases of forced or compulsory labour | Page 100 | 11.12 Forced labour and modern slavery | |
| GRI 414: Social evaluation of suppliers 2016 | 414-1 New suppliers that have passed selection filters according to social criteria | Page 102 | ||
| GRI 205: Anti-corruption 2016 | 205-1 Operations assessed for corruption-related risks | Pages 26, 27, 28, 29 | 11.20 Anti-corruption | |
| 205-2 Communication and training on anti-corruption policies and procedures | Pages 30, 31 | |||
| 205-3 Confirmed cases of corruption and actions taken | Page 24 | |||
| Sustainability governance | ||||
| GRI 3: Material topics 2021 | 3-3 Management of material issues | Pages 10-18, 34-36, 47-50 | ||
| GRI 2: General Contents 2021 | 2.9 Governance structure and composition | Pages 9, 10, 11, 12, 14, 16, 17 | ||
| Own | Letter from the President | Pages 4, 5 | ||
| Own | Sustainability Master Plan | Pages 47-50 | ||
| Climate adaptation, resilience and transition | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 57-70 | ||
| GRI 201: Economic performance 2016 | 201-2 Financial implications and other risks and opportunities arising from climate change | Incomplete information. No information is available on the costs of measures taken to manage risk or opportunity. An attempt will be made to collect this information for the next report. | 11.2 Climate Adaptation, Resilience and Transition | |
| GRI 305: Emissions 2016 | 305-5 Reduction of GHG emissions | Pages 104-106 | ||
| Own | Adherence to the Emission Reduction Initiative: OGMP 2.0 | Pages 57-63 | ||
| Green energy promotion and innovation projects | Pages 64-70 | |||
| Asset Integrity and Critical Incident Management | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 82-85 | ||
| GRI 306: Effluents and waste 2016 | 306-3 Significant spills | No significant spills have occurred during 2023. | 11.8 Asset integrity and critical incident management | |
| Own | Evolution of emergency care times | Page 85 | ||
| Cybersecurity | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 73-81 | ||
| Own | Developments in Personal Data Protection activities | Page 74 | ||
| Information Security in our supply chain | Pages 75, 76 | |||
| Maturity level assessment based on Deloitte's CyberIndustrial Strategy Framework (CISF) v2.0 | Pages 78, 79, 80 | |||
| Economic and financial risks | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 71, 72 | ||
| Own | Annual audit of accounts | Page 72 | ||
| Regulatory risks | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 55, 56 | ||
| GRI 2: General Contents 2021 | 2.28 Membership of associations | Pages 59, 65, 66, 68, 70, 102, 123, 140 | ||
| Own | Adherence to the Emission Reduction Initiative: OGMP 2.0 | Pages 57-63 | ||
| Economic and financial value creation | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 86-88 | ||
| GRI 201: Economic performance 2016 | 201-1 Direct economic value generated and distributed | Pages 86, 87 | ||
| Own | Net turnover (thousands of €) | Page 86 | ||
| EBITDA (thousands of €) | Page 86 | |||
| Balance sheet at 31 December 2023 (M €) | Page 87 | |||
| Distribution network development and extension | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 88-95 | ||
| GRI 203: Indirect economic impacts 2016 | 203-1 Investments in infrastructure and supported services | Page 113 | ||
| Own | 2023 registrations by type of market | Page 89 | ||
| Own | Evolution of natural gas supply points | Pages 89-90 | ||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 115-123 | ||
| Own | % Implementation of Maintenance Plan | Page 116 | ||
| Number of communications with the client | Page 122 | |||
| Management and number of complaints and claims | Pages 121-123 | |||
| Evolution of customer satisfaction indexes: CSAT (Customer Satisfaction Score) and GMB (Google My Business) | Pages 117, 118 | |||
| Extending ESG criteria to the supply chain | ||||
| GRI 3: Material Topics 2021 | 3-3 Management of material issues | Pages 99-102 | ||
| GRI 409: Forced or compulsory Labour 2016 | 409-1 Operations and suppliers with significant risk of cases of forced or compulsory labour | Page 100 | 11.12 Forced labour and modern slavery | |
| GRI 414: Social evaluation of suppliers 2016 | 414-1 New suppliers that have passed selection filters according to social criteria | Page 102 | ||
| GRI 407: Freedom of association and bargaining collective 2016 | 407-1 Operations and suppliers where the right to freedom of association and collective bargaining may be at risk | Page 100 | 11.13 Freedom of Association and Collective Bargaining" | |
| 408: Child Labour 2016 | 408-1 Operations and suppliers with significant risk of child labour cases | Page 100 | ||
| GRI 308: Environmental assessment of suppliers 2016 | 308-1 New suppliers that have passed selection filters according to environmental criteria | Page 102 | ||
| 308-2 Negative environmental impacts on the supply chain and measures taken | Pages 100-102 | |||
| GRI 414: Social evaluation of suppliers 2016 | 414-1 New suppliers that have passed selection filters according to social criteria | Page 102 | ||
| 414-2 Negative social impacts on the supply chain and measures taken | Pages 100-102 | |||
| Emissions, pollution and combating climate change" | ||||
| GRI 3: Material Topics 2021 | 3.3. Management of material issues | Pages 103-109 | ||
| GRI 302: Energy 2016 | 302-1 Energy consumption within the organisation | Pages 108, 109 | 11.1 GHG emissions | |
| 302-2 Energy consumption outside the organisation | Information not available. An attempt will be made to collect this information for the next report. | |||
| 302-3 Energy intensity | ||||
| GRI 305: Emissions 2016 | 305-1 Direct GHG emissions (Scope 1) | Pages 104-106 | 11.1 GHG emissions | |
| 305-2 Energy-related indirect GHG emissions (Scope 2) | Pages 104-106 | |||
| 305-3 Other indirect GHG emissions (scope 3) | Pages 104-106 | |||
| 305-4 Intensity of GHG emissions | Page 107 | |||
| 305-7 Nitrogen oxides (NO ), sulphur oxides (SO ) and other significant air emissions | Pages 107-108 | 11.3 Emissions to air | ||
| GRI 416: Customer health and safety 2016 | 416-1 Assessment of health and safety impacts of product or service categories | Page 138 | ||
| GRI 305: Emissions 2016 | 305-5 Reduction of GHG emissions | Pages 104-106 | ||
| Own | Adherence to the Emission Reduction Initiative: OGMP 2.0 | Pages 57-63 | ||
| Green energy promotion and innovation projects | Pages 64-70 | |||
| Energy access and economic impact | ||||
| GRI 3: Material Topics 2021 | 3.3. Management of material issues | Pages 113-115 | ||
| GRI 201: Economic performance 2016 | 201-1 Direct economic value generated and distributed | Pages 86, 87 | 11.14 Economic impacts | |
| GRI 202: Market presence 2016 | 202-2 Proportion of senior executives recruited from the local community | Page 125 | ||
| GRI 203: Indirect economic impacts 2016 | 203-1 Investments in infrastructure and supported services | Page 113 | ||
| 203-2 Indirect economic impacts significant | Page 113 | |||
| GRI 204: Procurement practices 2016 | 204-1 Proportion of expenditure on local suppliers | Pages 98, 99 | ||
| Occupational safety and health | ||||
| GRI 3: Material Topics 2021 | 3.3 Management of material issues | Pages 137-145 | ||
| GRI 403: Health and safety at work 2018 | 403-1 Occupational health and safety management system | Page 138 | 11.9 Health and safety at work | |
| 403-2 Hazard identification, risk assessment and incident investigation | Pages 139, 142 | |||
| 403-3 Occupational health services | Page 144 | |||
| 403-4 Workers' participation, consultation and communication on health and safety at work | Pages 138-139 | |||
| 403-5 Training of workers on occupational health and safety at work | Pages 144-145 | |||
| 403-6 Workers' health promotion | Page 144 | |||
| 403-7 Prevention and mitigation of impacts on the health and safety of workers directly linked through business relations | Pages 142-143 | |||
| 403-8 Workers covered by an occupational safety and health management system | Page 138 | |||
| 403-9 Work-related injuries | Page 141 | |||
| 403-10 Occupational diseases and illnesses | Page 141 | |||
| Applicable GRI Sector Standards topics considered non-material | ||
| GRI Sector Standard | Topic | Explanation |
| GRI 11: Oil and Gas Sector 2021 | 11.17 Rights of indigenous people | Given MRG’s scope of action, the Autonomous Community of Madrid, where even its suppliers are mainly local, we consider that there can be no material impact. |
| 11.19 Unfair competition | As Madrileña Red de Gas’ business is regulated, unfair competition would be directly linked to corruption. | |
| 11.21 Payments to governments | Considering the regulations that apply to MRG in Spain, we would again be talking strictly about corruption. | |
| 11.22 Public policy | Spanish legislation does not allow direct promotion of public policies by private companies. As in the two previous requirements, this would be a case of corruption. | |
| Applicable GRI Sector Standards topics considered not material, but relevant | ||
| GRI Sector Standard | Topic | Explanation |
| GRI 11: Oil and Gas Sector 2021 | 11.4 Biodiversity | Following the dual materiality assessment and prioritisation process, according to our methodology, these topics proposed by the GRI 11 sector standard: Oil and Gas Sector 2021, and initially identified as relevant, have not turned out to be material for Madrileña Red de Gas. |
| 11.5 Waste | ||
| 1.6 Water and effluents | ||
| 11.7 Closure and rehabilitation | ||
| 11.10 Employment practices | ||
| 11.11 Non-discrimination and equality of opportunities | ||
| 11.15 Local communities | ||
| 11.16 Rights to land and resources | ||
| 11.18 Conflicts and security | ||
11.7 External assurance
To ensure compliance with the principles and guidelines specified by GRI and that the information contained herein is accurate, this report has been externally and independently verified by the auditing and certification entity Bureau Veritas S.A., with the secretary of the Audit and Risk Committee, representing the highest governing body, participating actively in this process.
This entity declares the conformity of this sustainability report with the principles and guidelines specified in the GRI Standards and the reliability of the information contained herein:
