3.1 Sustainability Strategy

There are six lines of work that define the strategy of Madrileña Red de Gas for a sustainable future.

3.2 Mission, Vision and Values

Our mission

To meet the energy needs of our customers with the best possible conditions. We want to achieve operational excellence in customer service and in the permanent improvement of management practices and offer our shareholders maximum profitability and value for the company.

Our vision

Working together to provide more comfort to a greater number of customers, growing our team and shareholders, for the benefit of society. It is also part of our vision to maintain a relevant presence in the forums and areas of reference, to get achievements and business excellence that differentiate us from our competitors and to be respectful of the values, principles and ideals of all the actors in society with whom we have a relationship.

Our values

• Integrity
  Permanent attention to the sensitivities and social needs where all our actions are governed by values such as honesty, integrity and dignity.
• Safety
  We want to continue improving the safety of the operations we carry out and achieve appropriate levels of occupational health and safety, continuously improving accident prevention and continuing to work to ensure the protection of the personal data of our customers and employees.
• Human capital
  We carry out innovation programmes for the education and training of our staff. We foster a corporate culture that prioritizes the well-being of people and collective leadership.
• Customer orientation
  We pursue operational excellence in customer service, fulfilling our commitments, being decisive and efficient. We are committed to investing in artificial intelligence tools, digitization, process automation and the development of information systems aimed at improving the service we provide to our customers and collaborators.
• Improvement
  We work permanently to achieve internal improvement through process optimization and cost efficiency, as conditions to remain competitive and create wealth for both the company and for our customers. We adopt a proactive approach in the management of corporate risks that may arise, maintaining and improving, at the same time, the quality and safety levels of our operations.
• Focus on results
  We are committed to consolidate a positive and stable evolution of the company over time and to achieve results through the motivation and commitment of the team to the projects and challenges set, adopting growth strategies focused on profitable and sustainable expansion in our territory and in adjacent areas.

3.3 Corporate Social Responsibility Policy

Madrileña Red de Gas has a substantial influence on economic development, quality of life, sustainability and environmental protection by playing a leading role, as a company in the energy sector within the natural gas distribution chain, in the regional area of the Community of Madrid.

Corporate responsibility is understood and assumed by Madrileña Red de Gas as the set of strategic actions developed by the Company to establish trustworthy, stable, solid and mutually beneficial relationships with its stakeholders, among whom are the following:

• Shareholders and investors
• Customers
• Local communities
• Competent authorities
• Collaborators and suppliers
• Employees
• Society as a whole

Madrileña Red de Gas has integrated corporate responsibility into its strategy and positioning, as part of our corporate values. We are aware that the Company’s acceptance and financial success can only be sustainable if it makes an active, credible and tangible contribution to the outcome of the challenges facing our society. Thus, the Management of Madrileña Red de Gas establishes criteria for good governance of the Company and a Code of Ethics of mandatory compliance for all employees, as a means to achieve these outcomes.

The “Mission, Vision and Values” manifesto of Madrileña Red de Gas includes the general commitments assumed by the Company with the current stakeholders, in summary:

• Integrity
• Safety
• Customer orientation
• Focus on results
• Improvement

Madrileña Red de Gas has a scorecard of indicators for monitoring the Corporate Responsibility Policy aligned with the Company’s business plans, based on a criterion of transparency, establishing objectives in this area and reporting their degree of compliance.

The policy is reviewed periodically to ensure its correct adaptation to the reality and circumstances of MRG.

3.4 Stakeholder Engagement

At MRG, the commitment and continuous dialogue with stakeholders is a key factor in guaranteeing the success of the business. This allows us to align business management with the needs and expectations of all parties in some way involved in the Company and thus offer great added value to our customers, MRG team members and other stakeholders.

Through a procedure to determine context, risks and opportunities, MRG identifies the internal and external aspects that define the organization, taking into account the needs and expectations of stakeholders.

The process entails, as a first stage, the delineation of the relationship with stakeholders, based on a prior identification of these groups, an assessment of their needs and expectations, and their analysis and prioritization in order to establish which of them become requirements and relevant aspects for sustainability.

These requirements and relevant aspects are considered within the context analysis phase, as factors to be taken into account, therefore, to define the Company’s strategy.

The results of this process are approved by the Board of Directors and lead to the drawing up of an Action Plan, and are taken into account for the definition of the strategic objectives.

As a result of this process, the stakeholders, and their needs, expectations, requirements and relevant aspects are defined, and the communication channels or mechanisms are identified as described below.

3.5 Materiality Analysis

Following on from the process of determining the context, risks and opportunities, MRG identifies and prioritizes the most relevant material issues for sustainability according to their importance for MRG and its stakeholders.

This year, as a starting point for the identification and prioritization of these aspects, a proprietary materiality analysis methodology has been applied, thus establishing a tool to identify the sustainability issues that should form part of MRG’s management priorities.

As a result of this methodology, MRG has identified and defined 13 material aspects, the management of which is reflected throughout the different chapters of the report.

Following the analysis carried out, MRG has set the objective for 2021 to further develop the materiality analysis methodology by increasing stakeholder participation with new perception studies and analysis of relevant aspects.

In 2015, world leaders adopted a set of global goals to eradicate poverty, protect the planet and ensure prosperity for all as part of a new sustainable development agenda. Each goal has specific targets to be achieved by 2030.