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CSR Report 2014
ABENGOA
SOLAR
Innovative technology solutions for sustainability
page 2
ABENGOA
SOLAR
Index
01 	 Letter from the CEO	 3
02 	 About this report	 5
03 	 Solar technology for sustainability	 15
04 	Milestones	 25
05 	 Abengoa Solar in figures	 27
06 	 Transparency and anti-corruption	 30
07 	 Commitment to sustainability	 37
07.1 	 Supporting our team’s talent	 38
07.2 	 Connecting with the social environment	 50
07.3 	 Responding to the demand of energy	 68
07.4 	 Managing the available natural resources	 76
08 	 External verification	 81
09 	Appendices	 87
10 	 GRI G4 Content Index	 93
11 	 Risk Management report according to ISO 31000	 110
CSR Annual Report 2014 Index
page 3
ABENGOA
SOLAR
G4-1, G4-2, G4-13
It is a pleasure for me, and the team that makes up Abengoa Solar, to
share with you the company’s annual results. From many perspectives,
2014 was an excellent year. In regards to project development, as
well as plant operation and maintenance, Abengoa Solar was able
to maintain its growth while consolidating its worldwide leadership
position in the solar thermal sector. Additionally, the company
incorporated many interesting options to our offer in the area of
photovoltaic technology.
2014 has been a particularly relevant year due to the consolidation of
our Operations and Maintenance (O&M) division. With the start of the
commercial operation of Mojave Solar in California (U.S.), which has
an installed capacity of 280 MW and has recently started selling its
power production to Pacific Gas and Electric, we have strengthened our
position as the largest operator of solar thermal electric plants in the
world. At the close of the year Abengoa Solar operated a portfolio of
1,591 MW of solar thermal installed capacity, including both parabolic
trough technology and tower technology plants. Our company is the
only operator with more than five years of experience in the operation
of both technologies. Due to their excellent design, high quality
construction and the hard work of our experts in O&M, our plants
reached more than 2,000 GWh last year. Given the large portfolio of
assets in operation under its responsibility, Abengoa Solar has been able
to implement an innovative and efficient program of standardization
and benchmarking that allows for continuous improvement in all our
plants. The experience curve, resulting from the monitoring of the
plants and the thorough optimization and automation of processes,
provides unlimited benefits.
We have also increased our presence in the world. In 2014, we
started the construction of Atacama 1 Complex in Chile, which will
be the largest solar complex in Latin America. Atacama 1 will mark
a milestone, not only in terms of solar generation capacity on the
continent, but it is also the first plant to combine a 110 MW solar
thermal plant with molten salts tower technology and 17 hours of
thermal storage with a 100 MW photovoltaic plant with a single axis
tracking system. This solar complex will be able to generate clean and
affordable energy 24 hours a day and, for the first time, solar energy
will be able to supply baseload power to an electric system in a way
that is competitive with conventional sources. This flexibility permits our
clients to meet their peak demand at any time of the day or night.
Moreover, in 2014 we were able to secure financing, sign the power
purchase agreement for, and start construction of Xina Solar One, our
third power plant in South Africa. Xina Solar One will feature parabolic
trough technology, with an installed capacity of 100 MW and a storage
system that allows for continuing electricity generation for up to
five hours without receiving solar radiation. Thanks to this sustained
development, the construction of our plants in South Africa will have a
high percentage of local content, which both enriches the region and
generates high-quality jobs.
In line with the continuous growth and development of our projects in
2014, we focused on asset rotation within Abengoa’s capital recycling
strategy. Solana, Mojave, Solabén 2 and 3, and Solacor 1 and 2 were
sold to Abengoa Yield, with Abengoa Solar remaining as operator,
allowing for an early return on investment that provides for continued
investment in new projects.
CSR Annual Report 2014 01 Letter from the CEO
page 4
ABENGOA
SOLAR
G4-1, G4-2, G4-13
All of our projects are possible thanks to our continuous and dedicated
efforts towards the development of our own technology. All of our
plants are built with Abengoa’s technology, either independently or by
means of strategic agreements with technology partners, leaders in
their sectors. Many of their components are also proprietary technology
that we manufacture for third parties, thereby generating an added
value to our R&D investments. Likewise, the operation of our plants
is carried out using devices and tools developed in our R&D centers in
Spain and the United States. The development of these tools relies on
the extensive experience of our operators, allowing us to increase the
quality of our O&M services and differentiating us in the marketplace.
Similarly, our efforts in technology development have led us to a
position where we can offer innovative thermal storage solutions to our
clients. In the coming years, the development of these storage systems
will significantly change the configuration of electric systems in the
most developed economies in the world.
But apart from that, Abengoa Solar has the vocation to affect
sustainable economic development in the communities where
it is present. In 2014, the company consolidated its responsible
management model, which established guidelines for a business
committed to economic, social and environmental concerns. Every
year, we attract local-talent to and stimulate wealth in these
economies by prioritizing local supply chains: a formula for added
value. At the same time, the excellence of our innovations has
permitted us to reduce the negative impacts produced by our activity
and maximize the positive impacts.
The company has encouraged relationships with local communities
where it develops its projects. In 2014, we began to apply London
Benchmarking Group’s (LBG) criteria for social action measuring, which
permits us to place a value on our social investment return. Abengoa
contributed to the development of infrastructures, education and the
conservation of cultures. Responsible management is reinforced by the
strict control that the company maintains at its facilities. For this reason,
the Corporate Social Responsibility division of the company has, since
2011, provided a risk analysis to identify facilities which are vulnerable
in ESG (Environmental, Social and Governance) and to put into practice
individual action plans that permit these facilities to mitigate the risks
which have been identified.
As an example of our commitment to meet the highest standards of
transparent management, our accounts have been audited under the
Public Accounting Oversight Board (PCAOB) standards. Our internal
control system is audited according to the audit standard No. 5 of the
PCAOB. Our Corporate Social Responsibility annual report is audited
externally under the guidelines established by norms ISAE 3000 and
AA1000.
Finally, I would like to publicly offer my gratitude to each and every
person who is part of the excellent team of professionals at Abengoa
Solar, and to all of our collaborators and partners in the projects
currently under development, for the work done during the past year.
The degree of efficiency and excellence reached is only possible with a
committed team that works every day to become even better. And of
course, my acknowledgement goes out to our clients for the trust they
place in Abengoa Solar technology solutions for a sustainable world.
CSR Annual Report 2014 01 Letter from the CEO
CSR Annual Report 2014 page 5
ABENGOA
SOLAR
02
About this
report
CSR Annual Report 2014 | 02 About this report page 6
ABENGOA
SOLAR
G4-15, G4-28, G4-29, G4-30, G4-32
Principles governing this report
Abengoa Solar’s Corporate Social Responsibility Report (CSRR) describes
its main activities and impacts, its strategy and business model, the
changes to its scope and structure as well as its goals and challenges.
This year, for the first time, the CSRR has been prepared in accordance
with the Global Reporting Initiative (GRI) G4 guidelines in accordance
with the comprehensive option (exhaustive).1
The company also adheres
to the principles of the AA1000AS international sustainability assurance
standard from AccountAbility2
, and continues to be committed to
upholding the principles of the United Nations’Global Compact, which
govern the company’s actions, activities and strategy.
Note 1	 GRI G4 (guide): new guide published by Global Reporting Initiative for
preparing sustainability reports.
Note 2	 AA1000AS standard: international sustainability assurance standard based
on the principles of inclusivity, relevance and responsiveness.
This year, for the first
time, the CSRR has been
prepared in accordance
with the GRI G4 guidelines.
“
CSR Annual Report 2014 | 02 About this report page 7
ABENGOA
SOLAR
G4-15, G4-25, G4-26
Principle
Who
defines it? How is it defined? How does Abengoa Solar apply it?
Inclusiveness/
Stakeholder
engagement
AA1000
(APS)/ GRI
This refers to the way in which the
company takes into account stakeholder
engagement when designing and
developing its strategy.
Abengoa Solar considers stakeholder(1)
engagement at every level of the organization:
›› In the design of its business strategy and when preparing the Corporate Strategic CSR Plan, which can
be consulted in detail in Abengoa’s CSR Report(2)
.
›› In the course of its business, through the different consultation channels in place(3)
.
›› In preparing the CSRR, including the recommendations of the Independent Panel of Sustainability
Experts (PIEDS) and through the consultation processes carried out as part of the procedure for
determining materiality.
Moreover, the company continuously works to improve the consistency and uniformity of its channels and
communications across the whole organization, in order to strengthen these consultation processes.
Relevance/
Materiality
AA1000
(APS)/GRI
The company must provide relevant
information to its stakeholders – in other
words, information that influences their
decisions and that has an impact on the
business.
As described below in this same section, Abengoa Solar participates in the annual consultations that Abengoa
carries out with its stakeholders, enabling it to update its materiality analysis accordingly.
In the coming years, the company also plans to further develop the analysis of the information related to the
most relevant issues, by geographical area and according to the risks associated with each region.
Responsiveness AA1000
(APS)/GRI
This refers to the way an organization
addresses stakeholder issues that affect
its performance in terms of sustainability.
In addition to the responses provided to stakeholders via the channels established by the company for this
purpose, Abengoa Solar considers its CSR Report to be an essential tool for addressing stakeholder concerns.
The report therefore provides in-depth coverage of the issues deemed most significant by the company’s
stakeholders and the Independent Panel of Sustainability Experts (PIEDS). Abengoa Solar also forms part
of Abengoa’s CSR Strategic Plan, which contains impact and performance targets for 2020 that can be
consulted in Abengoa’s CSRR.
Sustainability
context
GRI The CSRR should present the
organization’s performance in the wider
context of sustainability.
Throughout this report, Abengoa Solar evaluates its performance in the context of its contribution to its
stakeholders, the communities where it is present and the environment. During 2014, it has also carried out
various communication and promotional activities of sustainability-related issues in order to raise awareness
among its stakeholders and society in general about the imminent need to achieve progress based on
sustainable economic growth that will enable future generations to enjoy the same resources as the current
generation.
Completeness GRI The report should include issues that
reflect the company’s main impacts
in relation to CSR, as well as their
corresponding degrees of coverage.
During the past two years, Abengoa Solar has sought to identify the relevant issues and their level of
coverage. It has therefore taken into account its entire value chain (from suppliers to clients) in the
prioritization process and has begun to include the main regions in which the company operates in each
point along the chain.
Principios que rigen los contenidos del informe
(1) More information in Chapter 7.1. Supporting our team’s talent.
(2) The “CSR Strategy” chapter of Abengoa’s CSR Report can be found at http://www.abengoa.com/web/es/gestion_responsable/informe_rsc/.
(3) More information in chapter 7.2. Connecting with the social environment.
CSR Annual Report 2014 | 02 About this report page 8
ABENGOA
SOLAR
G4-15, G4-27
Principles regarding the quality of the information
Principle
Who
defines it? How is it defined? How does Abengoa Solar apply it?
Balance GRI The report should reflect both the
positive and negative aspects of the
organization’s performance.
Abengoa Solar continues to work towards providing the information (both positive and negative) resulting
from its management processes. Furthermore, as an example of this transparency, the company participates in
the annual evaluation by the PIEDS panel that Abengoa voluntarily undergoes.
Comparability GRI The organization should systematically
select, compile and disclose information
so that it is comparable with other
organizations and to show its
performance over time.
Indicators deemed most relevant by the company are reported so that information can be compared with its
main competitors. The report also presents comparable data for the past three years to provide readers with
historical information about the company’s performance.
Accuracy GRI The information should be expressed in
a way that is sufficiently accurate and
detailed for stakeholders to assess the
organization’s performance.
The independent review that this report has undergone ensures the accuracy of the quantitative data as well as
the relevance of the evidence and context of the qualitative information.
Timeliness GRI The organization should present its CSRR
on a regular basis so that stakeholders
have access to the information and can
make informed decisions.
Abengoa Solar annually publishes its CSRR in April. The company also reports key indicators for the CSR area
together with its financial information in the Responsible Management Balance Sheet that Abengoa publishes
every six months. These are verified by an independent external firm as part of the company’s commitment to
providing up-to-date information to stakeholders.
Clarity GRI The organization should make the
information available in a manner that
is accessible and understandable to
stakeholders.
Given the complexity of its business, this year the company has made efforts to explain its activities in a
graphical format, using clear, simple and understandable language.
Reliability GRI The organization should compile,
analyze and publish the information
and processes used to prepare the CSRR
in order to adhere to the criteria on
materiality and quality.
Abengoa is one of the few companies in the IBEX 35 to have reviewed its CSR indicators with a reasonable
level of assurance, demonstrating the reliability and internal control established in the organization’s reporting
systems.
CSR Annual Report 2014 | 02 About this report page 9
ABENGOA
SOLAR
G4-24, G4-25, G4-26
Abengoa has further consolidated its relationship with its stakeholders,
using tools that enable it to connect with them via one-to-one and
collective communication channels. Similarly, the organization is
developing specific channels that enable it to address the individual needs
of each stakeholder group. During 2014, Abengoa Solar has worked
on developing internal procedures that govern its relations with each
stakeholder group, identifying their needs and levels of satisfaction as
well as establishing the communication channels available for each one.
›› Employees
›› Financial institutions
›› Associations
›› Clients
›› Local administrations
›› The Media
›› Shareholders and
investors
›› Local communities
›› Society
›› Suppliers
›› Regulatory and national
and supranational
governmental bodies
Abengoa Solar’s
stakeholders
ABENGOA
SOLAR
The organization is
developing specific
channels that enable it
to address the individual
needs of each stakeholder
group.
“
CSR Annual Report 2014 | 02 About this report page 10
ABENGOA
SOLAR
G4-13, G4-17, G4-18, G4-22, G4-23
Scope of the information included in the
CSRR 2014
Unless stated otherwise in the text or in the reported data, all the
information and performance indicators included in the CSRR refer
to activities performed in 2014 by the companies that are effectively
controlled by Abengoa Solar and that have a significant social,
environmental and economic impact both inside and outside of the
organization. Data relating to previous years is also included to enable
comparisons of the reported information.
The scope of consolidation in 20143
is not the same as 2013 due to
acquisitions and divestments carried out during the year.4
Focusing the report on materiality
To identify the issues that are significant for Abengoa Solar, the company
has adopted the content requirements established by the GRI G4 guide
in preparing this report. This guide defines the materiality process,
identifying what is important and where it is important, which increases
the relevance of two variables: the company’s value chain5
and the
main geographical areas where it is present. Abengoa Solar participated
in the materiality analysis that Abengoa carried out in 2014, which
brings together all the sectors in which it operates (water, energy and
construction). The study is a continuation of the analysis from previous
years, taking both variables into account.
This process of defining material information involves a formal procedure
Note 3	The scope of consolidation for 2014 can be found in Appendix I.
Note 4	 The economic, social and environmental performance of those assets that have
been sold during the year has been included in this report for the period that these
assets belonged to the company.
Note 5	 Value chain: set of actions and activities that make up a company’s productive
process, encompassing both the organization itself and the agents that are involved in
the life-cycle of the products and services that the company provides to the market.
CSR Annual Report 2014 | 02 About this report page 11
ABENGOA
SOLAR
G4-18
that the company uses in its management of CSR. It further enables to
identify which information has sufficient relevance to be included in the
CSRR , which must appear in other media (such as the website), and
which information is not relevant.
The process got underway by taking the issues determined to be
relevant in the preceding year and adding in other new issues identified
during the external documentation process. The company also paid
close attention to public information concerning best practices in CSR
reporting and issues, and the questions from the Independent Panel of
Sustainability Experts (PIEDS). In addition to identifying new issues, the
purpose of this process is to focus efforts on delving deeper into matters
that the company has already identified as relevant, in order to prioritize
them from different perspectives and to incorporate different variables,
such as the components that make up the company’s value chain and the
regions in which the company performs its activities.
The next step was to classify the identified issues based on their
importance to a company like Abengoa (sector). A methodology was
also developed that enables the list of previously identified issues to be
prioritized both internally and externally.
The external prioritization was carried out by analyzing the information
deemed to be important by different opinion makers and leaders, taking
into account the influence of each issue on the decision-making by the
company’s stakeholders, analyzing the requirements of investors who
take into consideration environmental, social and governance (ESG)
aspects, and by studying the reputational crises that arose during 2014.
The different sectors in which the company operates were taken into
account when selecting the opinion makers and leaders to consult. In
total, priorities were established based on 20 organizations.6
Note 6	 Direct interviews with opinion makers and documentary analysis were carried
out for the prioritization process.
CSR Annual Report 2014 | 02 About this report page 12
ABENGOA
SOLAR
0%
25%
50%
75%
100%
0% 25% 50% 75% 100%
FocoReportarReportar en
otros
informes
No reportar
Relevanciaexterna
The communication channels that the company has with stakeholders
(including clients, investors, suppliers and local communities) were also
taken into account. The internal prioritization was carried out individually
in each of the company’s sectors in order to gauge materiality within
the context of each division. Once again, Abengoa Solar assembled its
Committee on Relevant Issues. The Committee consists of employees
from every area that manages non-financial information within the
company, taking in account diversity criteria – by level of responsibility,
geography and gender. The Committee assessed the importance of each
issue at the different points along the value chain, in terms of the impact
on the business.
Phase II: External assessment of relevant issues
External identification and prioritization of issues and
interviews held with endorsers.
Phase I: identifiying relevant issues
Based on examination of materiality from the preceding year, issues
defined by IPESD, issues included in the SCSRP by SASB(1)
and those
analysed in Phase II.
Phase III: Internal prioritization of issues
Prioritization of issues by the company’s management team.
(1) SASB: Sustainability Accounting Standards Board.
Ongoing process of change
to assess the relative
importance of issues
within the value chain and
the regions in which the
company operates. Endorsers Abengoa
consultation
Investors Press analysis
CSR Annual Report 2014 | 02 About this report page 13
ABENGOA
SOLAR
G4-19, G4-20, G4-21, G4-23, G4-27
The diagram shows the results of the internal and external
prioritization which identifies the issues for which comprehensive
information must be included (“Focus”) and those that must be
published in the CSRR (“”), as well as the number of times that
each issue impacts the components of the value chain, which is
represented by the size of the spheres.7
The company continues to work
on identifying the main geographical areas in which the “focus”
issues are of greater relevance.
Note 7	 The focus area is the section located in the upper right quadrant of the diagram.
The relevance assigned to each of the issues internally and at each point
of the value chain is shown below
0%
25%
50%
75%
100%
0% 25% 50% 75% 100%
FocusReportReport on
other
information
Non report
Internal relevance
Externalrelevance
Relevance
Impact on
the value
chain
Need for a stable legal framework Focus 5
Truthfulness and communication of correct
information to investors Focus 5
Impact on local communities Focus 5
Technology protection Focus 5
Adaptation to the environment in which the
company operates Focus/ Report 5
Risk of corruption, bribery, fraudulent practices and
money-laundering Report 5
Financing Report 3
Relations with public administrations Report 1
Presence in conflict zones Report 3
Human rights Report 4
Innovation Report 2
Working conditions: Work-family life balance, equal
opportunities at work, professional development,
etc. Report 3
Attracting and retaining talent Report 3
Health and safety of employees and
contractors Report 4
Climate change Report 5
Identification and control of the source of raw
materials Report 1
Product or service quality Report 5
Product and project design taking into account their
life cycle Report 3
Women in senior management positions Report 5
Interdependence of the brand image in its different
businesses Report 5
Reducing waste generation Report in
other reports 2
Biodiversity Report in
other reports 1
Communication with local communities Report in
other reports 3
CSR Annual Report 2014 | 02 About this report page 14
ABENGOA
SOLAR
Process and functions of
the Independent Panel of
Sustainability Experts (PIEDS)
Abengoa has voluntarily carried out an additional transparency exercise since
2007 by undergoing the annual evaluation by the Independent Panel of
Sustainability Experts (PIEDS), in all of the sectors in which it operates and
Abengoa Solar is included in this process.
During this process, the company works continuously with the Panel so
that each evaluation contributes a greater added value to the company
and to ensure that it is not carried out as a mechanical or systematic
evaluation process. Consequently, in 2014 the PIEDS panel decided to carry
out evaluations that were more focused on the company’s CSR policy and
performance, instead of being based on the information published in reports
from previous years. At the meeting of the Panel held in October in Madrid,
Abengoa presented the responses to each of the recommendations made by
its members following an exhaustive analysis of the company’s policies and
progress in CSR matters.
8
Note 8	 The report of recommendations can be found in Abengoa’s CSR Report as well
as on the company’s website.
Corporate Social Responsibility
Management System
Abengoa’s CSR Management System9
aims to provide control over
information to facilitate responsible management that seeks to minimize
the negative impacts associated with the company’s activities, while
increasing the positive impacts. The starting point for the system is
Abengoa’s mission, vision and values and encompasses the policies
defined by the company as well as the public commitments undertaken
throughout its history. This system has also been designed in accordance
with the international ISO 26000:201010
standard and its compliance is
verified annually by an independent third party.
Note 9 Social Responsibility Management System: Among the different tools that it
has, it contains a set of indicators in the three areas of CSR (social, environmental and
economic) for managing the company’s performance.
Note 10 ISO 26000:2010: International standard that includes the guidelines for all
types of organizations in the areas related to social responsibility, the environment,
human rights and consumer rights.
CSR Annual Report 2014 page 15
ABENGOA
SOLAR
03
Solar
technology,
sustainable
business
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 16
ABENGOA
SOLAR
G4-3, G4-15, G4-16, G4-56, G4-57, G4-58
The world today needs solutions that push towards sustainable
development and responsible management. This business concept is
applied by the company as a model, which acts as the basis for defining
its mission, vision and the values that shape its actions.
Mission
Abengoa is the world’s leading company for generating electricity from
solar thermal power, as well as offering photovoltaic products. Our
mission is to maintain this leadership in the STE sector, while further
developing our activities in the field of photovoltaics, all based on our
competitive advantage and sustained growth. This growth must be driven
by technological leadership and a unique business model, focused on the
complete integration of the business, from technological developments
and the development and manufacturing of components, through project
development and construction, to ownership and operation of facilities.
Vision
To supply increasingly efficient solar technology that makes us
competitive in terms of power generation compared to conventional
sources by 2020, including the cost of CO2
emissions.
Our values
Abengoa Solar’s management and business model are based on the
following values:
›	Integrity
		 Abengoa Solar strives to operate in an honest way in everything it
does, both within the organization itself and in the communities
where it is present.
› Legal compliance
		 Every action performed by the company must be legally compliant to
ensure the legal security of its actions and to reduce risk.
› Professional diligence
		 Involvement and complete commitment to all of the company’s
activities are essential qualities for the organization’s success.
› Reliability
		 Discretion and prudence govern Abengoa Solar’s relationships with
its stakeholders and are fundamental for building trust and creating
better communications and relations between the organization and
its surrounding community.
› Quality
		 Excellence forms part of every product and service that the company
offers.
The company also applies the 10 principles of the Global Compact.1
Note 1	 Abengoa publishes its progress report on the Global Compact website every
year.
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 17
ABENGOA
SOLAR
G4-34, G4-35, G4-36, G4-37, G4-38, G4-39, G4-48
Organizational structure
Board of Directors
Chairman D. Javier Benjumea Llorente
CEO D. Armando Zuluaga Zilbermann
Director D. José Dominguez Abascal
Director* D. Manuel Gasset Loring
Director* D. Javier Salas Collantas
Director D. Manuel Sánchez Ortega
Director D. Santiago Seage Medela
Director* Dª. Guadalupe Sundheim Losada
Director* D. Bernardo Villazán Gil
Director D. Armando Zuluaga Zilbermann
Non-director Secretary D. Fernando de las Cuevas Terán.
*Independent directors
Management team
CEO Armando Zuluaga
Spain Antonio González Casas
USA Frederick Redell
Europe, Africa and Abu Dhabi Michael Geyer
Middle East, Asia and Australia Craig Windram
Technical General Secretary David Gámez
Technical General Secretary, USA Hank Price
General Secretary Fernando de las Cuevas
Financing Javier Albarracín
Administration David Fernández
General Manager O&M Eduardo Duque
Engineering Miguel Ángel Cruz
Construction supervision Lara Álvarez
Internal Audit Sara Migueláñez
Human Resources Pablo Barrasa
Quality, EH&S and Environment Antonio de la Torre
Platforms Management
Solúcar/ Écija Manuel Carlos González Corralejo
El Carpio / Castilla La-Mancha José Emilio Camacho
Extremadura Rafael Sánchez
Solana Scott Nolan
Mojave Solar Nicholas Potrovitza
Kaxu Solar One Thorsten Rauch
Shams-1 Borja Sanz
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 18
ABENGOA
SOLAR
G4-5, G4-6, G4-7, G4-8, G4-9, G4-12, ID1, ID3
Global company
Abengoa Solar, S.A. is the parent company of a group of companies
(hereafter called “Abengoa Solar” or the “Group”), which at the end of
2014 consisted of 245 companies: the parent company, 221 subsidiary
companies, 9 associated companies and 8 companies in joint businesses.2
The Group’s companies also participated in six joint ventures and own
shareholdings of less than 20 % in other companies.
The company has a distinct global character that is expressed through its
employees in the 15 countries where it is present.
Note 2	 More information in Appendix III “Scope of consolidation of Abengoa Solar”.
Value generation: business lines
Innovation is the main driver of value in the organization. The effort we
invest in innovation every year enables us to maintain our technological
leadership in the solar industry.
The company works to improve the performance in STE and photovoltaic
technology, which understood as Development projects. During 2014,
the company has conducted development projects with an investment of
29.426 thousand euros. These assets are basically related to the Solúcar
plant in Seville, Spain.
These assets are based on the operation and testing of STE technologies.
Apart from this aforementioned investment, the company conducts other
research activities that are registered in annual results. The total amount
for the year 2014 is 33.089 thousand euros.
In STE technology, the construction of Khi Solar One, the first commercial
plant of its type, and the construction of Atacama 1 that combines tower
technology (110 MW) with photovoltaic (100 MW) and a thermal storage
system using molten salts, are two key areas for the development of solar
technology. This has supposed a total investment in R&D of 318.839
thousand euros for the year 2014.
Lastly, Abengoa´s Solar innovation activities are protected by patents to
ensure its leadership. At the end of 2014, Abengoa Solar had made 182
patent applications, 14 % more than in 2013.
United States
Spain
Germany
Italy
Algeria
Saudi
Arabia
South Africa
India
China
Australia
United Arab
Emirates
Morocco
Mexico
Brazil
Chile
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 19
ABENGOA
SOLAR
Business lines
Abengoa believes in research and development as the seed that will
generate excellence in the medium and long-term. It is therefore
committed to a portfolio of proprietary solar technologies, as well as
developments through strategic alliances with specialized companies in
the sector. To create this technology portfolio, Abengoa makes significant
investment –both financially and in terms of human capital– which is
monetized through the sale of that technology to group companies and
third parties once the technology has been proven.
Consequently, Abengoa is positioned along the whole solar technology
value chain (both STE and photovoltaic), from creating and developing
the most advanced technologies, through to commercializing mature
technologies and supplying products for operating, maintaining and
optimizing solar plants, as well as the components for constructing solar
plants, ensuring the best performance in the market.
Furthermore, as the world’s leading company in terms of installed STE
capacity, it has accumulated extensive knowledge of operating and
maintaining plants which enables it to make improvements to plant
design, construction and operating methods. Abengoa is therefore
the leading company for operating and managing STE plants, both
proprietary and for third-parties, obtaining maximum performance from
these facilities while continuously applying improvements based on its
experience.
The company is also among the top of the national and international
rankings for power generation, which it has achieved thanks to a
combination of the aforementioned knowledge, demanding work
standards, a set of tools specifically developed to provide this service to
our plants and complete dedication to health and safety regulations.
G4-9
Business lines
›› Development of new
solar technology (STE and
photovoltaic) ›› Industrialization of new
technologies
›› Development of solar
plants
›› Manufacturing and
sales of solar plant
components
›› Operation and
maintenance (O & M) of
solar plants
›› Ownership of solar plants
of installed power
2,283 MW
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 20
ABENGOA
SOLAR
G4-4, G4-8
Most significant projects in 2014
Mojave Solar, USA
Mojave Solar is one of the largest parabolic trough plants in the world.
With a gross installed capacity of 280 MW, it is capable of producing
enough energy to supply clean power to approximately 91,000 homes
in Harper Dry Lake, California. This was one of the most important solar
projects in the USA in 2014, when the plant came into operation.
KaXu Solar One, South Africa
KaXu Solar One is South Africa’s first STE plant and the largest parabolic
trough plant in the southern hemisphere. It will provide clean and stable
power to the South African power network, preventing the emission of
300,000 tons of CO2
into the atmosphere every year.
With an installed capacity of 100 MW, it is capable of generating
electricity to supply some 80,000 homes. The plant includes a 2.5 hour
molten salts thermal storage system that enables it to generate power
before the sun comes up and after it has set.
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 21
ABENGOA
SOLAR
G4-4, G4-8
Solana, USA
Solana is the largest parabolic trough plant in the world. Located in the
state of Arizona, it has an installed capacity of 280 MW and a storage
system that enables it to operate at full capacity for six hours during the
night. These features allow it to supply enough clean power to satisfy
the demand from 70,000 US homes. Solana completed its first year of
commercial operation in 2014.
Atacama 1, Chile
The Atacama 1 complex comprises a 110 MW STE plant with 17.5 hours
of thermal storage using molten salts and a 100 MW photovoltaic plant.
It is a pioneering initiative that will supply clean power 24-hours a day
at prices that are competitive with fossil fuels. This complex will prevent
the emission of 864,000 tons of CO2
per annum. Abengoa began
constructing of both the STE plant and the photovoltaic plant in 2014.
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 22
ABENGOA
SOLAR
G4-4, G4-8
Abengoa’s vertical integration in STE projects
Abengoa is fully capable of developing, manufacturing and supplying all
of the non-conventional core components for STE plants. This capability
prevents it from being dependent on third parties; it reduces supply risk;
and enables it to offer the most competitive features in the market.
Furthermore, in order to offer the most competitive prices and to reduce
transport costs (both financial and environmental), Abengoa is capable of
setting up solar components factories in the regions where projects are
carried out, boosting the economy of these regions.
Storage R&D
Abengoa has identified storage as one of the differentiating elements of
its products and services in the energy market. The company is therefore
committed to developing storage systems. Accordingly, Abengoa,
together with the National Renewable Energy Laboratory (NREL) and the
Colorado School of Mines (CSM) in the USA, is developing a new storage
technology for thermo-electric plants. The program will last for two years
and has received € 1.3 million in investment from the US Department of
Energy.
Abengoa Solar is leading the systems integration work and the technical-
financial analysis, focusing on the commercial potential of this technology
in future solar plant projects
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 23
ABENGOA
SOLAR
G4-4, G4-8, G4-PR6
Products and services
Components for plants
Abengoa Solar can design, manufacture and develop key components for
proprietary or third-party solar plants.
Tower heliostast
Parabolic trough
collectors
HCPV Modules
Trackers for
photovoltaic modules
The new ASUP 140 heliostat offers improved efficiency and can reduce the cost of the
solar field by 30 %.
The E2 collector, designed by Abengoa, includes improvements for a more efficient
assembly and better operating performance and can be purchased directly or as part of a
turnkey solar field project.
New SpaceTube® collector:
SpaceTube® wide-aperture collector.
M300™ Module: It has a concentration
factor of 1,000x, as well as operating
efficiency greater than 30 %.
M300S™ Module: It offers a concentration
factor of 1,300x, improved thermal
performance and the highest level of
operating efficiency in the market.
M35™ Module: It has a concentration
factor of 500x and high efficiency.
T140™ Tracker: It has a surface area of
144 m² and is specifically designed for
HCPV modules.
T30™ Tracker: This model with 54 m²
of surface area, high precision tracking
and high wind resistance, can be installed
without using concrete.
Tornasol™ Tracker: With a surface area
of 8 m², its low visual impact makes it the
best HCPV option for roofs and areas where
other trackers may create visibility problems.
O & M services
Abengoa offers external clients different lines to meet their specific needs:
›› Integral O&M management of STE plants
›› Specific subcontractor services in O & M.
›› Specific products: components, optimization and outsourcing.
CSR Annual Report 2014 | 03 Solar technology, sustainable business page 24
ABENGOA
SOLAR
G4-4, G4-8, G4-PR6
O & M equipment
Condor reflectometer
Mini Incus
spectrophotometer
Cleaning vehicles
SFMA
Test bed for tubes
The Condor reflectometer is an innovative portable instrument used to measure the
reflectivity of the mirrors of the solar field, with a high degree of accuracy.
The Mini Incus device evaluates the optical properties of the receiver tube to improve
power generation and increase the associated revenues.
Abengoa Solar sells cleaning vehicles for heliostats and for parabolic trough mirrors.
Tool for classifying, monitoring and managing solar fields from mobile devices. Created
to optimize the management and monitoring of incidents and cleaning works on a
solar field, improving real-time information and saving time and resources.
High precision service for comprehensively evaluating the optical and thermal properties
of the receiver tubes of parabolic trough collectors. It can provide a comprehensive
breakdown of the performance of any receiver tube using a contactless system.
Industrial applications
Abengoa Solar supplies clean power generated by the sun to industrial clients around the world.
PT-1 parabolic trough collectors: it operates at a wide range
of temperatures (up to 250ºC), and it is built in aluminum for a
longer lasting and greater reliability.
Abengoa Solar also offers the RMT, a smaller version of PT-1,
specially designed for its installation in rooftops.
CSR Annual Report 2014 page 25
ABENGOA
SOLAR
04
Milestones
CSR Annual Report 2014 | 04 Milestones page 26
ABENGOA
SOLAR
Start of construction of
Atacama 1 in Chile, which will
have 17.5 hours of storage.
Solana, the world’s largest
parabolic trough plant with
a capacity of 280 MW,
completes its first year of
operation.
Commissioning of Mojave
Solar in the Mojave Desert,
California (USA), which will
generate sufficient power to
supply 91,000 homes with
clean energy.
Commissioning of KaXu Solar
One, the first STE plant to
come into operation in South
Africa.
Extension of O&M services for
STE plants: Creation of a new
vertical area that manages
resources across all solar
platforms and offers know-how
to third parties.
Commissioning of the high
concentration photovoltaic
plant in Coquillon, France,
belonging to Compagnie
Nationale du Rhône (CNR), for
which we supplied the high
concentration photovoltaic
modules.
Contract for 950 GWh/year of
power in Chile, which Abengoa
will produce from a combination
of STE and photovoltaic plants.
Implementation of the
PE&C (People, Education
and Communities) social
development program in
South Africa and Chile.
Signing of the agreement
with the Native American
tribe, San Manuel Band of
Mission Indians, to protect
indigenous culture.
Solana has received the
Governor’s Award for Energy
& Technology Innovation as
well as the President’s Award
in the 34th edition of the
Arizona Forward Environmental
Excellence awards. These
awards recognized the
innovative nature of the plant
as well as the important
environmental benefits that
it contributes to the State of
Arizona.
Solana, in Arizona, has also
been awarded the Energy
Storage North America (ESNA)
Innovation Award, in the
commercial-scale projects
category.
Open Days for the community
and employees at the Solúcar
platform. Open days for the community
and employees at the KaXu
Solar One and Khi Solar One
plants (South Africa).
Development of new thermal
storage technology in
collaboration with the US
National Renewable Energy
Laboratory (NREL) and the
Colorado School of Mines.
Signing of a 20-year power
purchase agreement with the
South African Department of
Energy for the Xina Solar One
project; closing of the financing
for the project; and start of its
construction.
Signing of five new
collaboration agreements
that will improve the
municipalities where we are
present.
CSR Annual Report 2014 page 27
ABENGOA
SOLAR
05
Abengoa Solar
in figures
CSR Annual Report 2014 | 05 Abengoa Solar in figures page 28
ABENGOA
SOLAR
EBITDA in 2014
in fixed assets
in consolidated revenues
of local suppliers on
average in our main
locations
invested in R&D&i
patent applications
of installed power
295.9 M€
2,087.9 M€
563.5 M€
More than 90%
351.92 M€
182
2,283 MW
G4-DMA (desempeño económico), G4-9, G4-EC1, ID1, ID3
CSR Annual Report 2014 | 05 Abengoa Solar in figures page 29
ABENGOA
SOLAR
local managers
of training on
sustainable
development and
climate change
CO2
emissions prevented
in H&S training
in social investment
of corporate
volunteering
in 2014
99 %
664 hours
623,704 t
13,298 hours
293.5 k€
332 hours
1,562 employees
G4-DMA (desempeño económico), G4-9, G4-EC1
CSR Annual Report 2014 page 30
ABENGOA
SOLARABENGOA
SOLAR
06
Transparency and
anti-corruption
CSR Annual Report 2014 | 06 Transparency and anti-corruption page 31
ABENGOA
SOLAR
G4-DMA, G4-56, G4-57, G4-58, G4-SO3, G4-SO4
Over the last few years, Abengoa Solar has worked hard to improve its
processes according to criteria that ensure information transparency
and establishing controls to combat corruption. Best practices ensure
that the values that govern the company’s corporate culture are applied,
such as honesty, integrity, good judgement and professional
diligence, which are considered essential to the company’s reputation
and success.
Practices for preventing corruption
Abengoa Solar has mechanisms and procedures in place to prevent and
detect fraudulent and corrupt practices. These mechanisms have been
incorporated into the Common Management Systems, which are
continually updated and ensure a balance between the best business
opportunities and appropriate risk management. All company employees
periodically receive information and training about the procedures to
follow and the channels available for reporting any irregular activities they
identify.
The organization has a variety of instruments for preventing
corruption: National and international laws, the recommendations of
national and international regulatory bodies and the company’s Code
of Conduct define the company’s course of action from a preventive
standpoint, while the Whistleblower Channel and other detection
mechanisms, such as audits, enable the company to pinpoint potentially
fraudulent activities.
Anti-corruption law
Abengoa Solar is subject to local and international anti-corruption
legislation, particularly the US Foreign Corrupt Practices Act (FCPA). This
law applies to all companies that operate in the US, regardless of their
country of origin, and supplements the internal control requirements
established under Section 404 of the Sarbanes-Oxley Act.
The FCPA forbids bribes and payments to foreign government officials
intended to influence any act or decision resulting in undue advantage,
and not only applies to companies’ activities in the USA, but throughout
the world.
Abengoa Solar’s common management systems are devised to ensure
and oversee compliance by all its employees, senior managers and
directors with the provisions of any legal regulations related to anti-
corruption practices that are applicable to Abengoa, including the FCPA.
Abengoa Solar also provides training to its employees as a strategic way
of disseminating and raising awareness about the anti-corruption policies
that the company should apply. In 2014, a total of 664 hours of training
on anti-corruption policies was provided.
The company also demands the same standards and practices from its
supply chain through its Social Responsibility Code, which all company
suppliers are required to observe. This code includes a clause that
expressly prohibits any type of corrupt practice that benefits Abengoa.
Similarly, Abengoa reinforces its internal controls in all business segments
through the Fraud Prevention and Detection Unit – a division of the
Internal Audit team that monitors compliance with this law. In 2014,
some 15 financial audit reports were issued, in addition to legal audits,
among Abengoa Solar’s companies, which included reviews and risk
analyses related to corruption, among other aspects.
Honesty Integrity Good
judgement
Professional
diligence
+ + +
of tranings on
anti-corruption policies
664 hours
CSR Annual Report 2014 | 06 Transparency and anti-corruption page 32
ABENGOA
SOLAR
G4-DMA, G4-56, G4-57, G4-58, G4-HR3, G4-SO3, G4-SO4
Code of conduct
Abengoa Solar has a code of professional conduct that defines
working relations for employees, senior managers and directors
within the company, as well as stakeholder relations. The general
aim of the code is to increase transparency and professional diligence
by establishing standards of conduct expected from all Abengoa
employees. The code is available on the company’s intranet and the
corporate website so that it is accessible to anyone that wishes to
consult it. It is available in the company’s working languages: English,
Spanish and Portuguese.
The company promotes application of the conduct described in the
code as the corporate culture, applicable to the whole Abengoa Solar
team. When new employees join the company, they are provided with
a welcome manual that lays out the guidelines that should define
their relations and conduct. Moreover, every employee receives specific
training on this matter to ensure that they can comply and to
promote ethical conduct among every member of the organization.
The code is continuously updated to implement best practices.
Employees are immediately informed of any changes that are made, via
the company’s communication channels.
Whistleblower channel
The whistleblower channels are an essential part of Abengoa Solar’s
commitment to anti-corruption. They are accessible to all of the
company’s stakeholders and represent the mechanism through which
they can anonymously report any irregular conduct they identify.
CSR Annual Report 2014 | 06 Transparency and anti-corruption page 33
ABENGOA
SOLAR
G4-DMA, G4-56, G4-57, G4-58, G4-HR3, G4-SO3, G4-SO4
In effect and operational since 2007, these whistleblower channels were
devised in accordance with the specific requirements of the Sarbanes-
Oxley Act:
›› Internal: available to all employees to report any complaints or
claims concerning financial statements or other reports, accounting
matters, internal controls over the financial information reported,
auditing matters or breaches of the Code of Conduct.
›› External: intended to enable anyone outside the company to report
irregularities, fraudulent acts or conduct that contravenes the Code
of Conduct. This channel is available on Abengoa’s website.
In accordance with the whistleblower channel, which defines the
parameters and conditions for handling all information received, there
is a specific guarantee ensuring total confidentiality for people that use
the tool, allowing information to be submitted anonymously without
any risk of reprisal for claims made in good faith. The policy dictates that
the response protocol must be initiated within 48 hours from the
moment that the claim is made.
In addition to the whistleblower channels, any infraction can be directly
reported to the compliance officer, supervisors, managers and duly
authorized personnel.
Audits for preventing and detecting fraudulent activities
In 2012, Abengoa created the Fraud Prevention and Detection Unit,
which operates across every division of its business, tasked with
identifying and mitigating the main fraud-related risks to which
the company is exposed and investigating any claims received through
the available channels. The tasks associated with the preventive audits
in relation to fraud are conducted according to an action plan which
includes the geographical regions and business segments that are most
susceptible to fraud, as well as a review of those areas entailing greater
risk in the financial statements. The Unit prepared 15 preventive audit
reports in 2014.
Additionally, to reinforce its anti-fraud efforts, Abengoa joined the
ACFE Corporate Alliance (Association of Certified Fraud Examiners)
on November 1, 2014. The association helps companies by providing
tools and specific training aimed at combatting fraud and corruption,
and also provides resources for obtaining CFE (Certified Fraud Examiner)
accreditation for internal auditors involved in detecting fraud and non-
compliance.
In relation to the prevention of financial risks, fraudulent activities and
money-laundering, Abengoa Solar’s policy on investments made in tax
havens is based strictly on justified business and economic criteria that are
wholly independent of other motivations, such as obtaining tax benefits or
tax exemptions. Abengoa Solar does not operate in any of the countries
classified as tax havens by Spain’s National Tax Authorities (AEAT).
In other short of things, Abengoa Solar does operate in other regions
that, although not included in the AEAT’s list of tax havens, are
considered by international organizations and observatories to be
territories with taxation systems that are more favorable than the system
in Spain. It has subsidiaries in Delaware (USA), The Netherlands and
Luxemburg. These decisions are strictly based on economic or business
grounds or to simplify the corporate or administrative management
process and are never related to reasons of tax evasion, money
laundering or the financing of illegal activities.
CSR Annual Report 2014 | 06 Transparency and anti-corruption page 34
ABENGOA
SOLAR
G4-46, G4-56, G4-57, G4-58
Risk management
Abengoa Solar defines the guidelines for its business based on diligent
management of the associated risks in order to create value and
improve the company’s competitiveness. Risk management begins
with the identification and parameterization of any project prior to its
commencement, establishing its tolerance to risk and the likelihood
of occurrence. When moving forward with a project, the risk function
defines the most appropriate mitigation measures for each type of risk.
The Global Risk Management System enables the company to control
and determine risks and is intended to establish a common risk culture
to help the company achieve objectives in this area and to allow it to act
and adapt accordingly.
In 2014, the main changes implemented in relation to risk management
policies were as follows:
›› Classification of countries where the company operates according
to the risk they pose in terms of environment/security, political risk,
sovereign rating, transparency index and natural risks. The measures
to be applied to each country have been defined according to their
rating, and these must be implemented in order to do business in
them..
›› Implementation of a risk analysis methodology with respect to
climate change so that all activities can be evaluated and treated
accordingly so as to support the sustainability of the business in line
with corporate policy.
›› Reinforcement of analysis and control measures in order to
prevent the undertaking of tasks and businesses that may violate
international rules and damage the interests of Abengoa Solar and
its stakeholders.
Universal Risk Model
The Universal Risk Model is used to gauge the level of risk according
to the probability and impact of each risk in every category (strategic,
financial, legal and operational risk). It also provides online risk maps
through automatic real-time connection with the company’s information.
The objective is to obtain a comprehensive risk assessment, designing an
efficient response system.
Risk measurement is carried out across the whole of Abengoa Solar, by
company and by relevant geographic region, and is reviewed every six
months. This allows specific action plans to be designed for those risks
that exceed the tolerance thresholds defined in each case.
The Universal Risk Model is being adapted so that the model, apart from
providing the risk map information, will help to obtain and monitor the
indicators that each business unit deems significant for its daily business
management, increasing the efficiency of the system.
Consolidation of CSR risks
One of the risks that form part of the Universal Risk Model is the CSR
risk. This risk was modified in 2013 introducing the results of the annual
CSR risk analysis carried out in the corresponding plants. The analysis is
carried out from a dual perspective: One approach assesses 		
27 risks depending on the type of facility, while the other is taken
from a third-party perspective. One of the new developments in
2014 has been the participation of five opinion leaders that represent
the facility, or five people with access to the opinion of the community
in question, who take a survey, included in the third-party perspective
approach, which the people responsible for analyzing the questionnaire
subsequently use as an input.
Once the risk analysis has been carried out, a mitigation plan is created
for the analyzed facilities. In 2014, five of Abengoa Solar’s facilities were
analyzed and mitigation plans were drawn up for two of them based
on the detected risks. Work is currently being carried out to prepare
mitigation plans for the remaining facilities analyzed.
The Universal Risk Model
is used to gauge the level
of risk according to the
probability and impact of
each risk.
“
CSR Annual Report 2014 | 06 Transparency and anti-corruption page 35
ABENGOA
SOLAR
G4-DMA, G4-46, G4-SO1
The CSR risk area of the Universal Risk Model therefore enables to
present more consistently the impact on EBITDA and the probability
of occurrence, while also improving the ongoing dialogue with the
stakeholders, in relation to the projects that affect them.
The risks that are included in the CSR risk analysis are grouped into six
main areas:
›› Labor practices
›› Health and safety
›› Supply chain
›› Social commitment and local impact
›› Environmental management
›› Ethics, integrity and compliance
KPI evolution:
In 2014 a total of 164 risks were analyzed at Abengoa Solar’s facilities,
compared to 36 examined in 2013.
Risk mitigation
The company applies the controls needed to maintain the different
identified risks within the established limits, determining the strategy
to be followed for each one. The risk mitigation systems are applied at
different levels:
›› Business-level: each and every procedure (legal, financial,
procurement, quality, corporate social responsibility) contains
measures for mitigating the inherent risks, and it is obligatory to
apply these measures.
›› Project-level: each company project is preceded by a risk
analysis and quantification, which extends to all project phases
(development, construction and operation). No project is undertaken
without conducting this risk analysis, verifying that all potential risks
have been taken into account and approval received from those in
charge at all decision-making levels.
›› Strategic-level: measuring risks through the Universal Risk Model
requires and allows action plans to be defined so that risks are
maintained at the tolerance level established in each case.
The system compiles the lessons learned, which enables feedback from
the risk management system and the application of measures for new
projects or businesses according to past experience.
Committees on risk management
Abengoa Solar’s management monitors the evolution of risks in great
detail. A monthly review by a chaired committee enables the evolution
of risks to be periodically analyzed and supports correct decision-making
for the business. Furthermore, Abengoa Solar’s participation in corporate
review procedures enriches the management system and mitigation of
the risks defined in the Universal Risk Model.
0
0
1
2
3
4
1
R 32 - 2014
R 32 - 2013
2 3
Impact
Probability
4 5 6
CSR Annual Report 2014 | 06 Transparency and anti-corruption page 36
ABENGOA
SOLAR
G4-DMA, G4-SO6, G4-SO7, G4-SO8
Compliance
In 2013, Abengoa set up a Corporate Compliance Program1
in every
business area with the aim of preventing, detecting, and sanctioning any
conduct that could result in corporate or employee liability. It comprises
the self-regulating programs voluntarily put in place by the company to
adapt to legal requirements, to further illustrate its hallmark commitment
to ethical conduct, and to prevent and detect unlawful conduct.
The Corporate Compliance Program has been developed based on the
Open Compliance and Ethics Group (OCEG)2
model, as a concept of
management excellence for key corporate governance processes, risk
management and compliance.
In 2014, Abengoa implemented the policy relating to this area in a
specific Obligatory Compliance Rule (NOC by its Spanish acronym) and
its associated control processes. It also developed four specific programs
to categorize the actions carried out under the Corporate Compliance
Program framework:
›› Anti-trust Compliance Program
›› Data Protection Compliance Program
›› Anti-corruption Compliance Program
›› Criminal Matters Compliance Program
Note 1	 Further information can be found in chapter 6.2 “Corporate governance, risk
management and compliance” of Abengoa’s Corporate Social Responsibility Annual
Report.
Note 2	OCEG: organization that promotes a system for integrating good governance,
compliance, risk management and ethics in companies.
CSR Annual Report 2014 page 37
ABENGOA
SOLAR
07
Commitment to
sustainability
CSR Annual Report 2014 page 38
ABENGOA
SOLAR
07.1
Supporting our
team’s talent
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 39
ABENGOA
SOLAR
G4-DMA
1,562 employees
comprise our team
In a changing and highly competitive environment, companies search for
aspects that differentiate them in a sustainable way over time. Abengoa
Solar, with technological development and operations at its core, is
committed to attracting, developing and retaining talent as one of the
company’s most powerful tools for achieving business success.
Every year Abengoa Solar strives to improve its systems to ensure
that it attracts the best talent and it prepares annual personal training
plans for employees that enable them to develop their capabilities and
skills, providing the company with the best professionals. Our teams are
managed using an integral management system that encompasses all HR
processes, which ensures the effective implementation of its policies related
to human capital.
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 40
ABENGOA
SOLAR
Our Team
In 2014 the company’s projects led to a 22 % increase in the global
workforce compared to 2013, rising to 1,562 employees. Likewise, the
company’s local hiring policy improves its knowledge of the countries
where we are present and ensures better adaptation to the environment.
Spain
68.05 % 21 % 95 %
North America
20.36 % 17 % 100 %
Latin America
0.90 % 29 % 100 %
Africa
5.06 % 24 % 100 %
Middle East
4.67 % 22 % —
Asia
0.58 % 11 % 100 %
Oceania
0.06 % — —
Europe
0.32 % 60 % —
—
Employees: % of the total
Women: % per region
Local managers: % of the total
There are no management personnel in this region
G4-DMA, G4-9, G4-10, G4-EC6, G4-LA12
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 41
ABENGOA
SOLAR
G4-10
The average age of the workforce is 36. The distribution by age range
shows how the company’s team is consolidating.
Abengoa Solar also improved the quality employment contract ratio for
its personnel in 2014, with permanent contracts accounting for 53 %
of the total, 2 % more than in 2013, reflecting the positive trend since
2012, with 49 % temporary contracts.1
In 2014 the number of female employees fell by two percentage points
compared to the previous year, from 22 % in 2013 to 20 % in 2014.
The percentage of female executives and managers was 17 % in
2014. Abengoa has set targets to improve the ratios of female executives
and managers, which apply to all of its business areas, including solar
Note 1	More information in the Appendix II “Social dimension”.
power. The company has set a target for 2020 of 20 % women in senior
management roles and 35 % in middle management. For reaching this
goal, these objectives will be implemented in the different areas of the
company, including Abengoa Solar.
2012
34 %
15 %
7 %
2 %
1 % 1 %
44 %
Age
20-30
Age
31-40
Age
41-50
Age
51-60
Age
+60
30 %
16 %
6 %
46 %
28 %
18 %
5 %
45 %
0 %
10 %
20 %
30 %
40 %
50 %
2013 2014
Distribution by contract type Women/Men
Distribution by contract type Women/Men
Indefinite Temporal Internship position
Man 643 578 25
Women 164 131 21
Men Women
Senior managers 34 4
Middle managers 120 27
Engineers and other
degree holders
361 152
Assistant and
technicias
73 62
Operators 633 50
Interns 25 21
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 42
ABENGOA
SOLAR
Employee commitment
Abengoa Solar is aware that business excellence is achieved through the
work of a talented and committed team. The company therefore pays
special attention to employee turnover indicators. In 2014 turnover was
6.5 % compared to 1.9 % the previous year. Of these departures, 1 %
was deemed to be critical and mostly related to employees in the 40-50
age bracket.
The turnover ratio of critical employees by gender was 0.22 % for men
and 0.15 % for women.
To identify possible areas for improvement, the company uses
questionnaires and interviews with employees that voluntarily decide to
leave the company. Relative to return workers after enjoying maternity
leave and paternity leave, it is observed that the percentage of employees
who took up their posts amounts to 98 %, similar to that of previous
years.
Training
Abengoa Solar is committed to continuously developing the knowledge
and professional skills of its team as a way of ensuring success in the
highly competitive solar sector.
Training plans
To respond to the training needs of the workforce, Abengoa Solar prepares
annual personal training plans based on each employee’s competence
analysis as part of the company’s Strategic Plan.
Abengoa Solar invests significant resources in training its employees as one
of its key objectives in the area of human resources. This is reflected in the
increase in the number of training hours provided as well as higher quality
courses. A total of 192,962 hours of training were given during the year,
27 % more than in 2013.
The training provided by the company covers general issues as well as
specific training plans for different professional categories and functions.
Abengoa Solar fully supports mobility and access to training for all its
employees, encouraging skills development via online training. In 2014,
50,285 hours were dedicated to online courses, 36 % more than in 2013.
The distribution of training hours by training category in 2014 and the
evolution compared to 2013 is as follows:
G4-DMA (empleo), G4-LA1, G4-LA3, G4-LA9, G4-HR2
Parental leave
  Nº of employees who
excercised their right to
parental leave
Nº of employees who returned
to work following parental
leave
Nº of employees who
remained their post after
twelve months
Men 39 39 37
Women 15 14 13
2014
2013
Total 2013
151,490 hours
14,090
23,211
13,298
52,82135,718
64,680
89,542
11,750
23,122
16,220
Total 2014
192,962 hours
Languages
Corporate
EH&S
General
Professional
practices
of skills development
trainings
192,962 hours
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 43
ABENGOA
SOLAR
G4-DMA, G4-LA10
Additionally, Abengoa Solar benefits from the training programs that
Abengoa offers to the whole organization, participating in the success
achieved by Abengoa University. Since 2012, Abengoa University has
been a catalyst for strengthening the strategic capabilities of Abengoa’s
managers, developing their skills to high levels of excellence.
Abengoa Solar has systems that enable it to measure the effectiveness
of its training plans, identifying whether they are aligned with students’
needs in terms of improving their performance as well as business results.
In 2014 this exercise revealed an employee global satisfaction score of
3.14 out of 4.00 for the training provided.
Internship program
Abengoa Solar also promotes talent among those looking for their
first opportunity in the employment market by offering the chance to
acquire practical experience that will effectively use their professional
skills while sharing the values and principles of the organization’s
corporate culture.
Every year the company signs various agreements with different higher
education institutions. The training integration model provides interns
with a personal tutor who supports their personal and professional needs.
A total of 79 students participated in this program in 2014. Moreover,
this work experience was supplemented with 93,456 hours of
theoretical training, which strengthens and complements the abilities
developed during the practical part of the program.
Grants for Vocational Education
Abengoa Solar is also committed to offering professional development
opportunities for those enrolled in vocational education at centers
close to its solar plants, which enables it to strengthen local talent and
encourages local hiring in the community. In 2014, the company signed
five agreements with vocational education centers and provided more
than 1,450 hours of work experience at solar plants.
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 44
ABENGOA
SOLAR
G4-DMA, G4-LA10, G4-LA11
Attracting and retaining talent
Obtaining and retaining the best talent in the company is essential
for achieving business excellence. Abengoa Solar makes significant
investments in tools that enable it to successfully implement its policy for
attracting and retaining talent.
The current market highlights the impact that teams can have on
the company’s business. Abengoa Solar therefore tries to strengthen
the mechanisms available and to develop new ways that allow us to
attract the best professionals. In 2014, the company has boosted its
presence on the internet and social networks as well as improving its
online positioning, which has resulted in an increase in the number of
professional applications received via digital media.
The company also measures employee satisfaction using the workplace
satisfaction survey, which it carries out every two years. This tool
enables the company to discover employees’ perceptions, identify areas
for improvement and undertake initiatives designed to improve conditions
for employees, helping to retain the company’s talent. In 2014, a total of
755 surveys were completed, with 72.1 % participation.
Marie Curie Postdoctoral Fellowship
Abengoa Solar is a technology company that seeks out the best talent
for its proprietary technology research and development and innovative
solutions that improve existing solutions, as the key to its competitive
advantage in the sector.
In 2014, the company awarded the prestigious Marie Curie
Postdoctoral Research Fellowship, promoted and financed by the
European Commission, thanks to the participation of Abengoa Solar
NT in the European R&D Mantodea project. The fellowship allows the
selected person to participate in the research and development of an
Abengoa project associated with the European Union during a two year
period.
Evaluation
tool
Who is
it for?
What does
it involve?
Scope of the
evaluation
Performance
management
All
employees
Every employee is
evaluated annually
by his or her direct
superior based on a
previously defined
competency profile,
according to position and
responsibilities.
1,022 people were
evaluated using
this system over the
course of the year.
360º
Feedback
Personnel on
the Executive
Development
Program
Participants include
superiors, colleagues,
collaborators and
the individual being
evaluated, and the
review is carried out by
having all participants
complete identical
questionnaires.
In 2014,
51 managers were
evaluated, involving
293 people
including superiors,
colleagues and
collaborators.
Executive
Intercom-
munication
Program
Executives
and
managers
Program for ascertaining
staff perceptions of their
own personal and career
development.
A total of 88 people
participated in the
program in 2014.
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 45
ABENGOA
SOLAR
G4-DMA, G4-11, G4-LA4, G4-LA8, G4-LA12, G4-HR2, G4-HR3, G4-HR5, G4-HR6, G4-HR7
Protection of human rights
To ensure that its employees’ rights are protected, every person working
for Abengoa Solar is subject to supra-company employment regulations,
regardless of the nature of their activities or the countries in which
they work. In addition to each country’s legislation, the regulations are
especially important thanks to the collective bargaining agreements of
the sector, territory or the company itself, signed with workers, their
representatives or unions, as appropriate.
Abengoa also guarantees that employees will be previously informed
of any structural or organizational change that occurs in the company,
as a basic labor right, whether at an individual level or via their
representatives, within the notice periods established by legislation and in
collective bargaining agreements.
The whole organization is expected to take the initiative in improving
business processes, working and environmental conditions, and problem-
solving. To that end, the company promotes the use of different channels
and IT tools, such as Abengoa Easy Management; suggestions via the
Employee Portal; and satisfaction surveys.
To prevent incidents related to human rights breaches, the company
provides training courses about human rights and anti-corruption
matters. In 2014, a total of 1,328 hours of training were given to
company employees on these subjects.
Diversity and equal opportunities
Abengoa Solar makes an explicit commitment to equal opportunities and
non-discrimination regardless of gender, race, color, religion, opinion,
nationality, economic status or any other circumstances.
These principles are expressly stated in the company’s different policies
(regarding hiring, recruitment, training, performance review, promotion,
remuneration, working conditions, family-work life balance, prevention of
harassment, etc.).
To ensure equal treatment and opportunities with respect to gender,
and to prevent any situations that might constitute labor discrimination,
whether directly or indirectly, Abengoa created its own Equality
Framework Plan in 2008. This applies throughout the company and
compliance is evaluated using the established channels and by annual
visits to companies to verify compliance with the SA 8000 guidelines.
As part of this plan, the organization has a protocol for reporting
workplace harassment to deal with situations that could be considered
as discriminatory. In addition, Abengoa Solar takes part in the Equality
Committee organized by Abengoa’s corporate area, which is tasked with
monitoring gender equality issues at a global level. In 2014, the Equality
Committee met twice for the purpose of analyzing and evaluating the
company’s status and to draw up measures to achieve the 2020 target set
by Abengoa in this area.2
Similarly, Abengoa Solar is committed to fully integrating disabled people
into the company through its social responsibility work. The company
is working to incorporate disabled people into social and working life
by promoting employment, integration and accessibility. To this end, it
supports initiatives aimed at offering employment integration for groups
that suffer from exclusion due to various reasons and it prioritizes people
above their limitations.
Note 2	 Further information is available in Abengoa’s Corporate Social Responsibility
Report.
in trainings on human
rights issues
664 hours
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 46
ABENGOA
SOLAR
G4-DMA, G4-EC5, G4-LA12, G4-LA13, G4-HR3
Remuneration policy
The company’s remuneration policy strictly complies with all legislation
and ensures equal pay and equal treatment and opportunities between
men and women, in line with the principles of equality and non-
discrimination required by the company’s policies and commitments.
Employee remuneration is set in line with the salary scale and legislation
of each region where Abengoa Solar operates.
The following table shows the percentage paid above the minimum
wage for the categories of degree holders and administrative staff, as an
indicator of the competitive salaries offered by the company.
2014 % paid above the minimum wage, by category
Country Degree holders Administrative staff
Spain 184 % 39 %
USA 128 % 68 %
Africa 519 % 395 %
Chile 340 % 118 %
The company’s remuneration policy offers supplementary variable
remuneration to certain employees, which is used to reward professionals
in the company according to their performance and the degree of
achievement of their personal targets. A total of 46.7 % of employees
benefit from variable remuneration, based on targets.
Overage monthly salary Men (€) Women (€)
Entry level graduate in Spain 1.838 1.838
Entry level graduate in USA 2.220 2.220
Entry level graduate in South Africa 1.123 1.123
Entry level graduate in Chile 1.450 1.450
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 47
ABENGOA
SOLAR
G4-DMA, G4-DMA, G4-EC3, G4-LA2, G4-LA5
Employee benefits
Abengoa Solar offers numerous benefits to its employees, which
contribute to improving their quality of life. These benefits consist of a
wide range of services and advantages that are adapted to each region
and workforce.
Some of the benefits offered to company employees are listed below.
Occupational health and safety
Ensuring optimal working conditions with regards to occupational
health and safety is a top priority for the company. Abengoa therefore
implements occupational health and safety systems that are regularly
audited by authorized entities that certify the degree of compliance
with legislation and their effectiveness. These systems are based on four
pillars:
›› Principles of Abengoa’s Occupational Health and Safety Policy
›› Legal provisions that apply in the country where the company
operates
›› Contractual specifications of the company’s clients in this area
›› Requirements of the norm OHSAS 180013
, international standard on
occupational health and safety management systems.
Abengoa Solar has certified all of its solar facilities and offices in Spain
under the OHSAS 18001 standard.
In 2014, work was carried out to develop and implement IT tools, such
as Abengoa Easy Management (AEM), which represent a major
step forward in terms of controlling occupational risks in companies,
work centers and at works sites, and especially in the construction and
commissioning of Abengoa’s major projects.
In order to achieve continuous improvement in health and safety
matters, the company convenes its health and safety committee every
month, which involves senior management and occupational health and
safety managers who analyze accident ratios, their evolution and the
implementation of reduction plans. Moreover, the activities included in
the Walk and Talk program regularly examine work processes, striving to
improve how they are managed.
Note 3	 OHSAS 18001: International certification for occupational health and safety
management systems.
Restaurant services
at the
headquarters in
Seville (Spain).
Medical service
to improve
employee
healthcare at work
centers with more
than 300 people.
Gymnasium
at the
headquarters in
Seville (Spain).
Kindergarten
service
at the
headquarters in
Seville (Spain).
Free transport
services at the
headquarters
in Seville
(Spain).
Tax advice.
Free financial
and tax advice
for employees
in the USA
La Antilla summer residence
available to all company
employees, at subsidized prices,
during the summer months in
Huelva (Spain).
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 48
ABENGOA
SOLAR
G4-DMA, G4-LA6, G4-HR4
The company believes that training is a key tool for effectively
implementing a culture of prevention in its working practices. To this
end, in 2014 Abengoa Solar provided a total of 13,298 hours of
occupational health and safety training to its employees, 13 % more
than in 2013.
The company has numerous communication channels for strengthening
the preventive culture within the organization. The company’s technical
staff exchange their experiences and best practices via the Colabora
platform, while the monthly publication of health and safety newsletters
also helps to disseminate the message throughout the whole workforce.
Awareness initiatives:
›› Fourth edition of “Safety Day”. For the first time, in 2014
personal protection equipment suppliers took part in various hands-
on sessions in order to maximize the effectiveness of use of their
equipment.
›› Awards for the best initiatives related to health and safety
submitted by employees.
›› Recognition of teams that have obtained the best safety records at
their solar facilities.
›› Awareness messages placed in strategic locations at solar plants.
›› Regular safety warnings that demonstrate the most common
failings and accidents, accompanied by the corresponding
preventive measures. This system, implemented at all operational
solar plants, receives common feedback information, reducing the
risk of duplicating incidents at other plants.
Abengoa Solar continues to develop resources that contribute to
achieving the targets set in its “zero accident” policy, based on
supervision, monitoring and training.
Thankfully there were no fatal accidents in 2014.
Health and safety indicators
Frequency
rate
Severity
rate
Nº of work-related
accidents with medical
leave of more than
one day
2014 17.84 0.13 16
2013 26.14 0.13 14
2012 14.56 0.10 5
Working days
lost due to
accidents
Total
absenteeism for
illness (%)
Total absenteeism
for work-related
accidents (%)
2014 344 0.79 0.12
2013 269 0.59 0.12
2012 177 0.46 0.11
CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 49
ABENGOA
SOLAR
G4-DMA, G4-LA6, G4-LA7
Some activities, due to the country where projects are located or the
associated processes, may result in employees being exposed to certain
risks or contagious diseases for which the company establishes various
preventive measures.
These diseases include malaria, cholera or tuberculosis, which
pose the greatest risk to employees. To prevent them, Abengoa Solar
vaccinates personnel that are temporarily or permanently based in
countries at risk of these and other diseases; specific medical checks and
tests are carried out; and training is given on preventing and contracting
these diseases.
In relation to occupational diseases, legionnaire’s disease can be
contracted in working environments for anyone working in laboratories.
Abengoa Solar implements risk minimization plans as well as providing
continuous training and prevention and monitoring of these and
other diseases. Chemical treatments are also employed to prevent
the appearance of this disease as well as obligatory use of protective
equipment.
in H&S training
13,298 hours
CSR Annual Report 2014 page 50
ABENGOA
SOLAR
07.2
Connecting
with the social
environment
CSR Annual Report 2014 | 07.2 Connecting with the social environment page 51
ABENGOA
SOLAR
The current trend is to carefully scrutinize companies’ performance in
relation to their environment, their capacity to interact with stakeholders
and the inclusion of stakeholders’ opinions in their decision-making.
The increase in the understanding of the concept of impact –whether
positive or negative– and the management of these impacts directly
affects the stability of a business. Furthermore, companies’ capacity to
influence their supply chain and the involvement of clients in decision-
making requires a management model and a business strategy that are
connected to the social environment.
Abengoa Solar uses different communication channels to connect with
its stakeholders4
, which enable us to create stable mutual relationships,
communicate information about the company and identify the
expectations of the social and economic agents that the company
interacts with.
This chapter will analyze the main actions carried out by the company
within the framework of its relations with its suppliers, clients, the
communities where it operates and society in general, as well as the way
in which it works to minimize any negative impacts and boost the positive
effects.
Note 4	 A map of Abengoa Solar’s stakeholders can be found in chapter 2, “About this
report”.
CSR Annual Report 2014 | 07.2 Connecting with the social environment page 52
ABENGOA
SOLAR
G4-26
From Abengoa to suppliers:
›› Abengoa Solar website.
›› Structured procedure for measuring
supplier efficiency.
›› Safety management system tool.
›› Visits to suppliers.
›› Annual report.
›› Social networks.
From suppliers to Abengoa:
›› Satisfaction surveys.
›› Structured procedure for receiving
information and opinions from
suppliers.
›› Abengoa Easy Management (AEM)
software for managing the company’s
decision-making and action plans.
›› Safety management system tool.
›› Stakeholder contact e-mail.
›› External whistleblower channel.
›› Opinion poll from the Annual Report.
›› Interviews.
›› CSR contact e-mail (rsc.solar@
abengoa.com).
›› Social networks.
From Abengoa to society:
›› Abengoa Solar website.
›› Annual report.
›› Focus-Abengoa Foundation website.
›› Press releases.
›› Corporate Social Responsibility
Department.
›› Meetings with NGOs and educational
institutions.
›› Open days.
›› Trade fairs, forums and conferences.
›› Corporate blog.
›› Social networks.
	
From society to Abengoa:
›› Press releases.
›› Communication Department.
›› Corporate Social Responsibility
Department.
›› Meetings with NGOs, the media and
educational institutions.
›› Open days.
›› Trade fairs, forums and conferences.
›› Stakeholder contact e-mail.
›› Corporate blog.
›› CSR contact e-mail (rsc.solar@
abengoa.com).
›› External whistleblower channel.
›› Opinion poll from the Annual Report.
›› Opinion poll.
›› Interviews.
›› Social networks.
From Abengoa to local communities:
›› Abengoa Solar website.
›› Annual report.
›› Focus-Abengoa Foundation website.
›› Press releases.
›› Corporate Social Responsibility
Department.
›› Meetings with NGOs and educational
institutions.
›› Open days.
›› Trade fairs, forums and conferences.
›› Corporate blog.
›› Social networks.
From local communities to Abengoa:
›› Communication Department.
›› Corporate Social Responsibility
Department.
›› Meetings with NGOs and educational
institutions.
›› Open days.
›› Trade fairs, forums and conferences.
›› Corporate blog.
›› CSR contact e-mail ( rsc.solar@
abengoa.com).
›› Assessment of beneficiaries of social
action programs.
›› External whistleblower channel.
›› Opinion poll from the Annual Report.
›› Interviews.
›› Stakeholder contact e-mail.
›› Social networks.
From Abengoa to clients:
›› Abengoa Solar website.
›› Focus groups with clients.
›› Safety management system tool.
›› Publicity and marketing.
›› Trade fairs, forums and conferences.
›› Periodic visits to clients.
›› Annual report.
›› Social networks.
From clients to Abengoa:
›› Focus groups with clients.
›› Satisfaction surveys.
›› Problem Resolution Report software.
›› Abengoa Easy Management (AEM)
software for managing the company’s
decision-making and action plans.
›› Safety management system tools.
›› Stakeholder contact e-mail.
›› CSR contact e-mail (rsc.solar@
abengoa.com).
›› Product training days.
›› External whistleblower channel.
›› Opinion poll from the Annual Report.
›› Interviews.
›› Social networks.
								 Communication channels with stakeholders5
Note 5	 The identified stakeholders have been grouped into four main social and economic groups for the purpose of publishing the communication channels diagram.
CSR Annual Report 2014 | 07.2 Connecting with the social environment page 53
ABENGOA
SOLAR
G4-DMA, G4-EN33
Outsourcing: This makes
it possible to focus on
improving knowledge,
improving the performance
of the core business and
incorporating highly
professional service by
directly involving suppliers
in day-to-day operations.
Leadership: The
continuous search
and contracting of the
leading suppliers in their
sector ensures innovative
solutions that contribute
improvements, with
a strong technology
component, which
enables Abengoa Solar to
maintain its high levels of
competitiveness and quality.
Globalization: Contracting
common suppliers across
different production centers
leads to a more developed
and uniform service with
standardized scopes.
These synergies facilitate
the application of global
solutions that translate into
cost optimization when
managing and developing
the company’s service and
procurement process.
Local development:
Focusing on developing
and involving local suppliers
ensures coverage of the
most essential and basic
needs, with the subsequent
flexibility in relation to
consumption and response
times. All of this has a
positive impact on the
commercial and industrial
growth of the regions
where we operate and
ensures close relations with
these regions.
The integration of
proposed improvements
from suppliers leads to
continuous progress
in productivity and
performance. Setting
prices based on results is a
basic principle of business
commitment, but must
be accompanied by the
integration of human rights
and business ethics into the
policy on environmental
safety.
Every year Abengoa Solar works with its supply chain to maintain its
relationships based on trust and mutual benefit which, in addition to
ensuring the quality of its products and services, promotes its culture
of responsible management and encourages ethical conduct between
members of the supply chain.
Supplier relationships are governed by five basic guidelines:
Responsible commitment to the
supply chain
CSR Annual Report 2014 | 07.2 Connecting with the social environment page 54
ABENGOA
SOLAR
G4-DMA, G4-EN33, G4-HR1
Supply chain management
Abengoa Solar is aware of its responsibility in the supply chain and
understands the importance of implementing and promoting high levels
of social responsibility across all of its activities, including the promotion
of the principles of the Global Compact, the Universal Declaration of
Human Rights, the Global Reporting Initiative (GRI) and the company’s
own code of conduct, ensuring compliance with these and committing to
uphold a relationship of trust and mutual benefit with its suppliers.
It therefore provides its suppliers and contractors with the necessary
resources to comply with these principles by providing advice and
requiring them to sign up to the following initiatives, among others:
Supplier emissions reporting for the greenhouse gas
management system (GHG)
Abengoa Solar requires all its suppliers to sign an agreement to
implement a greenhouse gas emissions reporting system (GHG), through
which all suppliers are required to report the CO2
emissions associated
with each order placed by the company. If a supplier does not have this
information, the company allows it six months to implement a system
that enables it to report the emissions associated with the products and
services it supplies.
To ensure a responsible commitment between the parties, breaches in
GHG reporting lead to measures that temporarily block new requests with
the supplier until the reporting data has been correctly sent. Repeated
breaches could lead to the supplier’s definitive exclusion from the supply
chain. In 2014 authorization was withdrawn from four authorized
suppliers due to deficiencies in their GHG emissions reporting.
Abengoa Solar helps suppliers to calculate their emissions and offers
them continuous training that enables them to record their environmental
impact in terms of CO2
.
Signing of the Abengoa Social Responsibility Code
To manage its business with the highest degree of integrity and utmost
respect for those that may be affected by its activities, Abengoa Solar
requires all of its suppliers to sign the Social Responsibility Code for
Suppliers and Subcontractors, which contains 11 clauses based on the
principles of the United Nations’ Global Compact and inspired by the
international SA8000 standard.6
By signing this agreement, the supplier not only agrees to manage its
business based on the code, but also to be fully prepared to submit to an
audit or another type of inspection by Abengoa to verify compliance with
these principles.
In 2014, 135 new suppliers signed the Social Responsibility Code.
Labor Social Responsibility Policy and implementation of a
management system
Abengoa’s Labor Social Responsibility management system has been
designed according to the SA8000 standard, which means that 100 %
of Abengoa Solar’s companies have implemented a certifiable system in
accordance with this standard.
One of the objectives of this management system is to require suppliers
and contractors to comply with Abengoa Solar’s guidelines on labor social
responsibility, establishing evaluation and selection procedures based on
social responsibility criteria and developing control mechanisms to ensure
compliance with this policy.
Note 6	 SA8000: Voluntary certification of employment conditions.
In 2014,
135 new suppliers
signed the Social
Responsibility Code.
“
CSR Annual Report 2014 | 07.2 Connecting with the social environment page 55
ABENGOA
SOLAR
G4-DMA, G4-EN32, G4-LA14, G4-HR4, G4-HR5, G4-HR6, G4-HR9, G4-HR10, G4-HR12, G4-SO9
Responsible Procurement System
To fulfill the commitments regarding its supply chain, Abengoa continues
to develop a system for responsibly managing its purchases, which
Abengoa Solar is incorporating into its management model. This process
has been designed to be undertaken in different stages depending on the
level of criticality.
The system includes sustainability criteria in supplier evaluations and
consists of tools and procedures that enable Abengoa to analyze the level
of risk of its suppliers. By conducting corporate internal audits, Abengoa
tries to prevent conduct that may run contrary to the performance
principles established by the company.
The system is being implemented in the three stages: supplier evaluations,
critical supplier audits and supplier ratings.
1. Supplier evaluations: risk identification and management
Abengoa Solar treats supply chain sustainability as a management
framework that enables it to mitigate risks and identify opportunities. It is
therefore a key element for the company’s reputation.
Higher risk suppliers are analyzed every year to evaluate the supply chain
in Abengoa Solar’s operations, monitoring suppliers’ involvement and
acceptance of corporate policies, determining risk levels and establishing
mitigation measures.
This analysis takes into account different variables, such as the supplier’s
country, the nature of the product or service supplied or the type of
activity it carries out, as well as more subjective aspects derived from
the company’s knowledge of its suppliers. To determine the level of risk
of the supplier’s country, Abengoa uses recognized international indices
for human rights (child labor, discrimination and freedom of association,
among others), corruption and observance of political and civil rights.
One of the improvements made this year included changes to the
aspects analyzed, in order to include new social and environmental
aspects, increasing the number of criteria to consider when performing
evaluations from 7 to 19.
In 2014, a total of 782 suppliers were analyzed, none of which were
identified as high risk suppliers.7
2. Supplier audits
The aim of this phase is to determine the degree to which Abengoa
Solar’s suppliers comply with the principles set out in the Social
Responsibility Code. To achieve this, an auditing procedure was created
to define the aspects to be reviewed and establish the scope of the work
according to the degree of supplier criticality, allowing analyses to be
carried out via self-assessment questionnaires or via remote or in-person
audits that include visits to the supplier’s facilities.
The audit phase is used when suppliers are identified as being significant
risk.
3. Supplier ratings
The last phase of this process consists of rating suppliers based on
the evaluation performed. This enables Abengoa Solar to reward best
practices and exclude suppliers that fail to comply with the requirements
established in the Social Responsibility Code.
Abengoa Solar may end its relationship with any supplier that
demonstrates “non-compliance”, unless problems are corrected. In 2014,
the company did not have to terminate any supplier relationships.
Note 7	 High risk supplier: suppliers that are at risk of breaching the Social Responsibility
Code having been analyzed according to specific variables, such as country of location,
type of product or service supplied, type of activity or labor practices.
analyzed in 2014
782 suppliers
CSR Annual Report 2014 | 07.2 Connecting with the social environment page 56
ABENGOA
SOLAR
G4-DMA, G4-EC9, G4-EN32, G4-LA14, G4-SO9
In addition, every year the company performs internal evaluations of
suppliers that account for 80 % of billing, analyzing their relationship
with the company, their level of commitment, the quality of the product
or service supplied and any unresolved claims. During this process,
improvement opportunities and weak points are identified that are
managed by the company.
Local suppliers
Working with local partners enables the company to strengthen and
support a local and stable economy, helping to improve living conditions
in the regions in which it operates by creating direct and indirect
employment and indirectly attracting investment.
Country Local suppliers (%) 2014 Local suppliers (%) 2013
Spain 88 % 91 %
USA 93 % 87 %
In 2014 a total of 66 % of purchases were made from local suppliers.
Entering new markets creates challenges when trying to obtain high-tech
components locally, which has affected the overall figures compared to
2013. Supply chain in South Africa
South Africa is one of the company’s strategic countries
in terms of its natural resources. In 2014, local purchases
accounted for more than 90 % of the total. To create local
wealth, Abengoa Solar is currently developing an economic
stimulus program that will directly impact the region’s
business sector.
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
Abengoa Solar's CSR Report
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Abengoa Solar's CSR Report

  • 1. CSR Report 2014 ABENGOA SOLAR Innovative technology solutions for sustainability
  • 2. page 2 ABENGOA SOLAR Index 01 Letter from the CEO 3 02 About this report 5 03 Solar technology for sustainability 15 04 Milestones 25 05 Abengoa Solar in figures 27 06 Transparency and anti-corruption 30 07 Commitment to sustainability 37 07.1 Supporting our team’s talent 38 07.2 Connecting with the social environment 50 07.3 Responding to the demand of energy 68 07.4 Managing the available natural resources 76 08 External verification 81 09 Appendices 87 10 GRI G4 Content Index 93 11 Risk Management report according to ISO 31000 110 CSR Annual Report 2014 Index
  • 3. page 3 ABENGOA SOLAR G4-1, G4-2, G4-13 It is a pleasure for me, and the team that makes up Abengoa Solar, to share with you the company’s annual results. From many perspectives, 2014 was an excellent year. In regards to project development, as well as plant operation and maintenance, Abengoa Solar was able to maintain its growth while consolidating its worldwide leadership position in the solar thermal sector. Additionally, the company incorporated many interesting options to our offer in the area of photovoltaic technology. 2014 has been a particularly relevant year due to the consolidation of our Operations and Maintenance (O&M) division. With the start of the commercial operation of Mojave Solar in California (U.S.), which has an installed capacity of 280 MW and has recently started selling its power production to Pacific Gas and Electric, we have strengthened our position as the largest operator of solar thermal electric plants in the world. At the close of the year Abengoa Solar operated a portfolio of 1,591 MW of solar thermal installed capacity, including both parabolic trough technology and tower technology plants. Our company is the only operator with more than five years of experience in the operation of both technologies. Due to their excellent design, high quality construction and the hard work of our experts in O&M, our plants reached more than 2,000 GWh last year. Given the large portfolio of assets in operation under its responsibility, Abengoa Solar has been able to implement an innovative and efficient program of standardization and benchmarking that allows for continuous improvement in all our plants. The experience curve, resulting from the monitoring of the plants and the thorough optimization and automation of processes, provides unlimited benefits. We have also increased our presence in the world. In 2014, we started the construction of Atacama 1 Complex in Chile, which will be the largest solar complex in Latin America. Atacama 1 will mark a milestone, not only in terms of solar generation capacity on the continent, but it is also the first plant to combine a 110 MW solar thermal plant with molten salts tower technology and 17 hours of thermal storage with a 100 MW photovoltaic plant with a single axis tracking system. This solar complex will be able to generate clean and affordable energy 24 hours a day and, for the first time, solar energy will be able to supply baseload power to an electric system in a way that is competitive with conventional sources. This flexibility permits our clients to meet their peak demand at any time of the day or night. Moreover, in 2014 we were able to secure financing, sign the power purchase agreement for, and start construction of Xina Solar One, our third power plant in South Africa. Xina Solar One will feature parabolic trough technology, with an installed capacity of 100 MW and a storage system that allows for continuing electricity generation for up to five hours without receiving solar radiation. Thanks to this sustained development, the construction of our plants in South Africa will have a high percentage of local content, which both enriches the region and generates high-quality jobs. In line with the continuous growth and development of our projects in 2014, we focused on asset rotation within Abengoa’s capital recycling strategy. Solana, Mojave, Solabén 2 and 3, and Solacor 1 and 2 were sold to Abengoa Yield, with Abengoa Solar remaining as operator, allowing for an early return on investment that provides for continued investment in new projects. CSR Annual Report 2014 01 Letter from the CEO
  • 4. page 4 ABENGOA SOLAR G4-1, G4-2, G4-13 All of our projects are possible thanks to our continuous and dedicated efforts towards the development of our own technology. All of our plants are built with Abengoa’s technology, either independently or by means of strategic agreements with technology partners, leaders in their sectors. Many of their components are also proprietary technology that we manufacture for third parties, thereby generating an added value to our R&D investments. Likewise, the operation of our plants is carried out using devices and tools developed in our R&D centers in Spain and the United States. The development of these tools relies on the extensive experience of our operators, allowing us to increase the quality of our O&M services and differentiating us in the marketplace. Similarly, our efforts in technology development have led us to a position where we can offer innovative thermal storage solutions to our clients. In the coming years, the development of these storage systems will significantly change the configuration of electric systems in the most developed economies in the world. But apart from that, Abengoa Solar has the vocation to affect sustainable economic development in the communities where it is present. In 2014, the company consolidated its responsible management model, which established guidelines for a business committed to economic, social and environmental concerns. Every year, we attract local-talent to and stimulate wealth in these economies by prioritizing local supply chains: a formula for added value. At the same time, the excellence of our innovations has permitted us to reduce the negative impacts produced by our activity and maximize the positive impacts. The company has encouraged relationships with local communities where it develops its projects. In 2014, we began to apply London Benchmarking Group’s (LBG) criteria for social action measuring, which permits us to place a value on our social investment return. Abengoa contributed to the development of infrastructures, education and the conservation of cultures. Responsible management is reinforced by the strict control that the company maintains at its facilities. For this reason, the Corporate Social Responsibility division of the company has, since 2011, provided a risk analysis to identify facilities which are vulnerable in ESG (Environmental, Social and Governance) and to put into practice individual action plans that permit these facilities to mitigate the risks which have been identified. As an example of our commitment to meet the highest standards of transparent management, our accounts have been audited under the Public Accounting Oversight Board (PCAOB) standards. Our internal control system is audited according to the audit standard No. 5 of the PCAOB. Our Corporate Social Responsibility annual report is audited externally under the guidelines established by norms ISAE 3000 and AA1000. Finally, I would like to publicly offer my gratitude to each and every person who is part of the excellent team of professionals at Abengoa Solar, and to all of our collaborators and partners in the projects currently under development, for the work done during the past year. The degree of efficiency and excellence reached is only possible with a committed team that works every day to become even better. And of course, my acknowledgement goes out to our clients for the trust they place in Abengoa Solar technology solutions for a sustainable world. CSR Annual Report 2014 01 Letter from the CEO
  • 5. CSR Annual Report 2014 page 5 ABENGOA SOLAR 02 About this report
  • 6. CSR Annual Report 2014 | 02 About this report page 6 ABENGOA SOLAR G4-15, G4-28, G4-29, G4-30, G4-32 Principles governing this report Abengoa Solar’s Corporate Social Responsibility Report (CSRR) describes its main activities and impacts, its strategy and business model, the changes to its scope and structure as well as its goals and challenges. This year, for the first time, the CSRR has been prepared in accordance with the Global Reporting Initiative (GRI) G4 guidelines in accordance with the comprehensive option (exhaustive).1 The company also adheres to the principles of the AA1000AS international sustainability assurance standard from AccountAbility2 , and continues to be committed to upholding the principles of the United Nations’Global Compact, which govern the company’s actions, activities and strategy. Note 1 GRI G4 (guide): new guide published by Global Reporting Initiative for preparing sustainability reports. Note 2 AA1000AS standard: international sustainability assurance standard based on the principles of inclusivity, relevance and responsiveness. This year, for the first time, the CSRR has been prepared in accordance with the GRI G4 guidelines. “
  • 7. CSR Annual Report 2014 | 02 About this report page 7 ABENGOA SOLAR G4-15, G4-25, G4-26 Principle Who defines it? How is it defined? How does Abengoa Solar apply it? Inclusiveness/ Stakeholder engagement AA1000 (APS)/ GRI This refers to the way in which the company takes into account stakeholder engagement when designing and developing its strategy. Abengoa Solar considers stakeholder(1) engagement at every level of the organization: ›› In the design of its business strategy and when preparing the Corporate Strategic CSR Plan, which can be consulted in detail in Abengoa’s CSR Report(2) . ›› In the course of its business, through the different consultation channels in place(3) . ›› In preparing the CSRR, including the recommendations of the Independent Panel of Sustainability Experts (PIEDS) and through the consultation processes carried out as part of the procedure for determining materiality. Moreover, the company continuously works to improve the consistency and uniformity of its channels and communications across the whole organization, in order to strengthen these consultation processes. Relevance/ Materiality AA1000 (APS)/GRI The company must provide relevant information to its stakeholders – in other words, information that influences their decisions and that has an impact on the business. As described below in this same section, Abengoa Solar participates in the annual consultations that Abengoa carries out with its stakeholders, enabling it to update its materiality analysis accordingly. In the coming years, the company also plans to further develop the analysis of the information related to the most relevant issues, by geographical area and according to the risks associated with each region. Responsiveness AA1000 (APS)/GRI This refers to the way an organization addresses stakeholder issues that affect its performance in terms of sustainability. In addition to the responses provided to stakeholders via the channels established by the company for this purpose, Abengoa Solar considers its CSR Report to be an essential tool for addressing stakeholder concerns. The report therefore provides in-depth coverage of the issues deemed most significant by the company’s stakeholders and the Independent Panel of Sustainability Experts (PIEDS). Abengoa Solar also forms part of Abengoa’s CSR Strategic Plan, which contains impact and performance targets for 2020 that can be consulted in Abengoa’s CSRR. Sustainability context GRI The CSRR should present the organization’s performance in the wider context of sustainability. Throughout this report, Abengoa Solar evaluates its performance in the context of its contribution to its stakeholders, the communities where it is present and the environment. During 2014, it has also carried out various communication and promotional activities of sustainability-related issues in order to raise awareness among its stakeholders and society in general about the imminent need to achieve progress based on sustainable economic growth that will enable future generations to enjoy the same resources as the current generation. Completeness GRI The report should include issues that reflect the company’s main impacts in relation to CSR, as well as their corresponding degrees of coverage. During the past two years, Abengoa Solar has sought to identify the relevant issues and their level of coverage. It has therefore taken into account its entire value chain (from suppliers to clients) in the prioritization process and has begun to include the main regions in which the company operates in each point along the chain. Principios que rigen los contenidos del informe (1) More information in Chapter 7.1. Supporting our team’s talent. (2) The “CSR Strategy” chapter of Abengoa’s CSR Report can be found at http://www.abengoa.com/web/es/gestion_responsable/informe_rsc/. (3) More information in chapter 7.2. Connecting with the social environment.
  • 8. CSR Annual Report 2014 | 02 About this report page 8 ABENGOA SOLAR G4-15, G4-27 Principles regarding the quality of the information Principle Who defines it? How is it defined? How does Abengoa Solar apply it? Balance GRI The report should reflect both the positive and negative aspects of the organization’s performance. Abengoa Solar continues to work towards providing the information (both positive and negative) resulting from its management processes. Furthermore, as an example of this transparency, the company participates in the annual evaluation by the PIEDS panel that Abengoa voluntarily undergoes. Comparability GRI The organization should systematically select, compile and disclose information so that it is comparable with other organizations and to show its performance over time. Indicators deemed most relevant by the company are reported so that information can be compared with its main competitors. The report also presents comparable data for the past three years to provide readers with historical information about the company’s performance. Accuracy GRI The information should be expressed in a way that is sufficiently accurate and detailed for stakeholders to assess the organization’s performance. The independent review that this report has undergone ensures the accuracy of the quantitative data as well as the relevance of the evidence and context of the qualitative information. Timeliness GRI The organization should present its CSRR on a regular basis so that stakeholders have access to the information and can make informed decisions. Abengoa Solar annually publishes its CSRR in April. The company also reports key indicators for the CSR area together with its financial information in the Responsible Management Balance Sheet that Abengoa publishes every six months. These are verified by an independent external firm as part of the company’s commitment to providing up-to-date information to stakeholders. Clarity GRI The organization should make the information available in a manner that is accessible and understandable to stakeholders. Given the complexity of its business, this year the company has made efforts to explain its activities in a graphical format, using clear, simple and understandable language. Reliability GRI The organization should compile, analyze and publish the information and processes used to prepare the CSRR in order to adhere to the criteria on materiality and quality. Abengoa is one of the few companies in the IBEX 35 to have reviewed its CSR indicators with a reasonable level of assurance, demonstrating the reliability and internal control established in the organization’s reporting systems.
  • 9. CSR Annual Report 2014 | 02 About this report page 9 ABENGOA SOLAR G4-24, G4-25, G4-26 Abengoa has further consolidated its relationship with its stakeholders, using tools that enable it to connect with them via one-to-one and collective communication channels. Similarly, the organization is developing specific channels that enable it to address the individual needs of each stakeholder group. During 2014, Abengoa Solar has worked on developing internal procedures that govern its relations with each stakeholder group, identifying their needs and levels of satisfaction as well as establishing the communication channels available for each one. ›› Employees ›› Financial institutions ›› Associations ›› Clients ›› Local administrations ›› The Media ›› Shareholders and investors ›› Local communities ›› Society ›› Suppliers ›› Regulatory and national and supranational governmental bodies Abengoa Solar’s stakeholders ABENGOA SOLAR The organization is developing specific channels that enable it to address the individual needs of each stakeholder group. “
  • 10. CSR Annual Report 2014 | 02 About this report page 10 ABENGOA SOLAR G4-13, G4-17, G4-18, G4-22, G4-23 Scope of the information included in the CSRR 2014 Unless stated otherwise in the text or in the reported data, all the information and performance indicators included in the CSRR refer to activities performed in 2014 by the companies that are effectively controlled by Abengoa Solar and that have a significant social, environmental and economic impact both inside and outside of the organization. Data relating to previous years is also included to enable comparisons of the reported information. The scope of consolidation in 20143 is not the same as 2013 due to acquisitions and divestments carried out during the year.4 Focusing the report on materiality To identify the issues that are significant for Abengoa Solar, the company has adopted the content requirements established by the GRI G4 guide in preparing this report. This guide defines the materiality process, identifying what is important and where it is important, which increases the relevance of two variables: the company’s value chain5 and the main geographical areas where it is present. Abengoa Solar participated in the materiality analysis that Abengoa carried out in 2014, which brings together all the sectors in which it operates (water, energy and construction). The study is a continuation of the analysis from previous years, taking both variables into account. This process of defining material information involves a formal procedure Note 3 The scope of consolidation for 2014 can be found in Appendix I. Note 4 The economic, social and environmental performance of those assets that have been sold during the year has been included in this report for the period that these assets belonged to the company. Note 5 Value chain: set of actions and activities that make up a company’s productive process, encompassing both the organization itself and the agents that are involved in the life-cycle of the products and services that the company provides to the market.
  • 11. CSR Annual Report 2014 | 02 About this report page 11 ABENGOA SOLAR G4-18 that the company uses in its management of CSR. It further enables to identify which information has sufficient relevance to be included in the CSRR , which must appear in other media (such as the website), and which information is not relevant. The process got underway by taking the issues determined to be relevant in the preceding year and adding in other new issues identified during the external documentation process. The company also paid close attention to public information concerning best practices in CSR reporting and issues, and the questions from the Independent Panel of Sustainability Experts (PIEDS). In addition to identifying new issues, the purpose of this process is to focus efforts on delving deeper into matters that the company has already identified as relevant, in order to prioritize them from different perspectives and to incorporate different variables, such as the components that make up the company’s value chain and the regions in which the company performs its activities. The next step was to classify the identified issues based on their importance to a company like Abengoa (sector). A methodology was also developed that enables the list of previously identified issues to be prioritized both internally and externally. The external prioritization was carried out by analyzing the information deemed to be important by different opinion makers and leaders, taking into account the influence of each issue on the decision-making by the company’s stakeholders, analyzing the requirements of investors who take into consideration environmental, social and governance (ESG) aspects, and by studying the reputational crises that arose during 2014. The different sectors in which the company operates were taken into account when selecting the opinion makers and leaders to consult. In total, priorities were established based on 20 organizations.6 Note 6 Direct interviews with opinion makers and documentary analysis were carried out for the prioritization process.
  • 12. CSR Annual Report 2014 | 02 About this report page 12 ABENGOA SOLAR 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% FocoReportarReportar en otros informes No reportar Relevanciaexterna The communication channels that the company has with stakeholders (including clients, investors, suppliers and local communities) were also taken into account. The internal prioritization was carried out individually in each of the company’s sectors in order to gauge materiality within the context of each division. Once again, Abengoa Solar assembled its Committee on Relevant Issues. The Committee consists of employees from every area that manages non-financial information within the company, taking in account diversity criteria – by level of responsibility, geography and gender. The Committee assessed the importance of each issue at the different points along the value chain, in terms of the impact on the business. Phase II: External assessment of relevant issues External identification and prioritization of issues and interviews held with endorsers. Phase I: identifiying relevant issues Based on examination of materiality from the preceding year, issues defined by IPESD, issues included in the SCSRP by SASB(1) and those analysed in Phase II. Phase III: Internal prioritization of issues Prioritization of issues by the company’s management team. (1) SASB: Sustainability Accounting Standards Board. Ongoing process of change to assess the relative importance of issues within the value chain and the regions in which the company operates. Endorsers Abengoa consultation Investors Press analysis
  • 13. CSR Annual Report 2014 | 02 About this report page 13 ABENGOA SOLAR G4-19, G4-20, G4-21, G4-23, G4-27 The diagram shows the results of the internal and external prioritization which identifies the issues for which comprehensive information must be included (“Focus”) and those that must be published in the CSRR (“”), as well as the number of times that each issue impacts the components of the value chain, which is represented by the size of the spheres.7 The company continues to work on identifying the main geographical areas in which the “focus” issues are of greater relevance. Note 7 The focus area is the section located in the upper right quadrant of the diagram. The relevance assigned to each of the issues internally and at each point of the value chain is shown below 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% FocusReportReport on other information Non report Internal relevance Externalrelevance Relevance Impact on the value chain Need for a stable legal framework Focus 5 Truthfulness and communication of correct information to investors Focus 5 Impact on local communities Focus 5 Technology protection Focus 5 Adaptation to the environment in which the company operates Focus/ Report 5 Risk of corruption, bribery, fraudulent practices and money-laundering Report 5 Financing Report 3 Relations with public administrations Report 1 Presence in conflict zones Report 3 Human rights Report 4 Innovation Report 2 Working conditions: Work-family life balance, equal opportunities at work, professional development, etc. Report 3 Attracting and retaining talent Report 3 Health and safety of employees and contractors Report 4 Climate change Report 5 Identification and control of the source of raw materials Report 1 Product or service quality Report 5 Product and project design taking into account their life cycle Report 3 Women in senior management positions Report 5 Interdependence of the brand image in its different businesses Report 5 Reducing waste generation Report in other reports 2 Biodiversity Report in other reports 1 Communication with local communities Report in other reports 3
  • 14. CSR Annual Report 2014 | 02 About this report page 14 ABENGOA SOLAR Process and functions of the Independent Panel of Sustainability Experts (PIEDS) Abengoa has voluntarily carried out an additional transparency exercise since 2007 by undergoing the annual evaluation by the Independent Panel of Sustainability Experts (PIEDS), in all of the sectors in which it operates and Abengoa Solar is included in this process. During this process, the company works continuously with the Panel so that each evaluation contributes a greater added value to the company and to ensure that it is not carried out as a mechanical or systematic evaluation process. Consequently, in 2014 the PIEDS panel decided to carry out evaluations that were more focused on the company’s CSR policy and performance, instead of being based on the information published in reports from previous years. At the meeting of the Panel held in October in Madrid, Abengoa presented the responses to each of the recommendations made by its members following an exhaustive analysis of the company’s policies and progress in CSR matters. 8 Note 8 The report of recommendations can be found in Abengoa’s CSR Report as well as on the company’s website. Corporate Social Responsibility Management System Abengoa’s CSR Management System9 aims to provide control over information to facilitate responsible management that seeks to minimize the negative impacts associated with the company’s activities, while increasing the positive impacts. The starting point for the system is Abengoa’s mission, vision and values and encompasses the policies defined by the company as well as the public commitments undertaken throughout its history. This system has also been designed in accordance with the international ISO 26000:201010 standard and its compliance is verified annually by an independent third party. Note 9 Social Responsibility Management System: Among the different tools that it has, it contains a set of indicators in the three areas of CSR (social, environmental and economic) for managing the company’s performance. Note 10 ISO 26000:2010: International standard that includes the guidelines for all types of organizations in the areas related to social responsibility, the environment, human rights and consumer rights.
  • 15. CSR Annual Report 2014 page 15 ABENGOA SOLAR 03 Solar technology, sustainable business
  • 16. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 16 ABENGOA SOLAR G4-3, G4-15, G4-16, G4-56, G4-57, G4-58 The world today needs solutions that push towards sustainable development and responsible management. This business concept is applied by the company as a model, which acts as the basis for defining its mission, vision and the values that shape its actions. Mission Abengoa is the world’s leading company for generating electricity from solar thermal power, as well as offering photovoltaic products. Our mission is to maintain this leadership in the STE sector, while further developing our activities in the field of photovoltaics, all based on our competitive advantage and sustained growth. This growth must be driven by technological leadership and a unique business model, focused on the complete integration of the business, from technological developments and the development and manufacturing of components, through project development and construction, to ownership and operation of facilities. Vision To supply increasingly efficient solar technology that makes us competitive in terms of power generation compared to conventional sources by 2020, including the cost of CO2 emissions. Our values Abengoa Solar’s management and business model are based on the following values: › Integrity Abengoa Solar strives to operate in an honest way in everything it does, both within the organization itself and in the communities where it is present. › Legal compliance Every action performed by the company must be legally compliant to ensure the legal security of its actions and to reduce risk. › Professional diligence Involvement and complete commitment to all of the company’s activities are essential qualities for the organization’s success. › Reliability Discretion and prudence govern Abengoa Solar’s relationships with its stakeholders and are fundamental for building trust and creating better communications and relations between the organization and its surrounding community. › Quality Excellence forms part of every product and service that the company offers. The company also applies the 10 principles of the Global Compact.1 Note 1 Abengoa publishes its progress report on the Global Compact website every year.
  • 17. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 17 ABENGOA SOLAR G4-34, G4-35, G4-36, G4-37, G4-38, G4-39, G4-48 Organizational structure Board of Directors Chairman D. Javier Benjumea Llorente CEO D. Armando Zuluaga Zilbermann Director D. José Dominguez Abascal Director* D. Manuel Gasset Loring Director* D. Javier Salas Collantas Director D. Manuel Sánchez Ortega Director D. Santiago Seage Medela Director* Dª. Guadalupe Sundheim Losada Director* D. Bernardo Villazán Gil Director D. Armando Zuluaga Zilbermann Non-director Secretary D. Fernando de las Cuevas Terán. *Independent directors Management team CEO Armando Zuluaga Spain Antonio González Casas USA Frederick Redell Europe, Africa and Abu Dhabi Michael Geyer Middle East, Asia and Australia Craig Windram Technical General Secretary David Gámez Technical General Secretary, USA Hank Price General Secretary Fernando de las Cuevas Financing Javier Albarracín Administration David Fernández General Manager O&M Eduardo Duque Engineering Miguel Ángel Cruz Construction supervision Lara Álvarez Internal Audit Sara Migueláñez Human Resources Pablo Barrasa Quality, EH&S and Environment Antonio de la Torre Platforms Management Solúcar/ Écija Manuel Carlos González Corralejo El Carpio / Castilla La-Mancha José Emilio Camacho Extremadura Rafael Sánchez Solana Scott Nolan Mojave Solar Nicholas Potrovitza Kaxu Solar One Thorsten Rauch Shams-1 Borja Sanz
  • 18. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 18 ABENGOA SOLAR G4-5, G4-6, G4-7, G4-8, G4-9, G4-12, ID1, ID3 Global company Abengoa Solar, S.A. is the parent company of a group of companies (hereafter called “Abengoa Solar” or the “Group”), which at the end of 2014 consisted of 245 companies: the parent company, 221 subsidiary companies, 9 associated companies and 8 companies in joint businesses.2 The Group’s companies also participated in six joint ventures and own shareholdings of less than 20 % in other companies. The company has a distinct global character that is expressed through its employees in the 15 countries where it is present. Note 2 More information in Appendix III “Scope of consolidation of Abengoa Solar”. Value generation: business lines Innovation is the main driver of value in the organization. The effort we invest in innovation every year enables us to maintain our technological leadership in the solar industry. The company works to improve the performance in STE and photovoltaic technology, which understood as Development projects. During 2014, the company has conducted development projects with an investment of 29.426 thousand euros. These assets are basically related to the Solúcar plant in Seville, Spain. These assets are based on the operation and testing of STE technologies. Apart from this aforementioned investment, the company conducts other research activities that are registered in annual results. The total amount for the year 2014 is 33.089 thousand euros. In STE technology, the construction of Khi Solar One, the first commercial plant of its type, and the construction of Atacama 1 that combines tower technology (110 MW) with photovoltaic (100 MW) and a thermal storage system using molten salts, are two key areas for the development of solar technology. This has supposed a total investment in R&D of 318.839 thousand euros for the year 2014. Lastly, Abengoa´s Solar innovation activities are protected by patents to ensure its leadership. At the end of 2014, Abengoa Solar had made 182 patent applications, 14 % more than in 2013. United States Spain Germany Italy Algeria Saudi Arabia South Africa India China Australia United Arab Emirates Morocco Mexico Brazil Chile
  • 19. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 19 ABENGOA SOLAR Business lines Abengoa believes in research and development as the seed that will generate excellence in the medium and long-term. It is therefore committed to a portfolio of proprietary solar technologies, as well as developments through strategic alliances with specialized companies in the sector. To create this technology portfolio, Abengoa makes significant investment –both financially and in terms of human capital– which is monetized through the sale of that technology to group companies and third parties once the technology has been proven. Consequently, Abengoa is positioned along the whole solar technology value chain (both STE and photovoltaic), from creating and developing the most advanced technologies, through to commercializing mature technologies and supplying products for operating, maintaining and optimizing solar plants, as well as the components for constructing solar plants, ensuring the best performance in the market. Furthermore, as the world’s leading company in terms of installed STE capacity, it has accumulated extensive knowledge of operating and maintaining plants which enables it to make improvements to plant design, construction and operating methods. Abengoa is therefore the leading company for operating and managing STE plants, both proprietary and for third-parties, obtaining maximum performance from these facilities while continuously applying improvements based on its experience. The company is also among the top of the national and international rankings for power generation, which it has achieved thanks to a combination of the aforementioned knowledge, demanding work standards, a set of tools specifically developed to provide this service to our plants and complete dedication to health and safety regulations. G4-9 Business lines ›› Development of new solar technology (STE and photovoltaic) ›› Industrialization of new technologies ›› Development of solar plants ›› Manufacturing and sales of solar plant components ›› Operation and maintenance (O & M) of solar plants ›› Ownership of solar plants of installed power 2,283 MW
  • 20. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 20 ABENGOA SOLAR G4-4, G4-8 Most significant projects in 2014 Mojave Solar, USA Mojave Solar is one of the largest parabolic trough plants in the world. With a gross installed capacity of 280 MW, it is capable of producing enough energy to supply clean power to approximately 91,000 homes in Harper Dry Lake, California. This was one of the most important solar projects in the USA in 2014, when the plant came into operation. KaXu Solar One, South Africa KaXu Solar One is South Africa’s first STE plant and the largest parabolic trough plant in the southern hemisphere. It will provide clean and stable power to the South African power network, preventing the emission of 300,000 tons of CO2 into the atmosphere every year. With an installed capacity of 100 MW, it is capable of generating electricity to supply some 80,000 homes. The plant includes a 2.5 hour molten salts thermal storage system that enables it to generate power before the sun comes up and after it has set.
  • 21. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 21 ABENGOA SOLAR G4-4, G4-8 Solana, USA Solana is the largest parabolic trough plant in the world. Located in the state of Arizona, it has an installed capacity of 280 MW and a storage system that enables it to operate at full capacity for six hours during the night. These features allow it to supply enough clean power to satisfy the demand from 70,000 US homes. Solana completed its first year of commercial operation in 2014. Atacama 1, Chile The Atacama 1 complex comprises a 110 MW STE plant with 17.5 hours of thermal storage using molten salts and a 100 MW photovoltaic plant. It is a pioneering initiative that will supply clean power 24-hours a day at prices that are competitive with fossil fuels. This complex will prevent the emission of 864,000 tons of CO2 per annum. Abengoa began constructing of both the STE plant and the photovoltaic plant in 2014.
  • 22. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 22 ABENGOA SOLAR G4-4, G4-8 Abengoa’s vertical integration in STE projects Abengoa is fully capable of developing, manufacturing and supplying all of the non-conventional core components for STE plants. This capability prevents it from being dependent on third parties; it reduces supply risk; and enables it to offer the most competitive features in the market. Furthermore, in order to offer the most competitive prices and to reduce transport costs (both financial and environmental), Abengoa is capable of setting up solar components factories in the regions where projects are carried out, boosting the economy of these regions. Storage R&D Abengoa has identified storage as one of the differentiating elements of its products and services in the energy market. The company is therefore committed to developing storage systems. Accordingly, Abengoa, together with the National Renewable Energy Laboratory (NREL) and the Colorado School of Mines (CSM) in the USA, is developing a new storage technology for thermo-electric plants. The program will last for two years and has received € 1.3 million in investment from the US Department of Energy. Abengoa Solar is leading the systems integration work and the technical- financial analysis, focusing on the commercial potential of this technology in future solar plant projects
  • 23. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 23 ABENGOA SOLAR G4-4, G4-8, G4-PR6 Products and services Components for plants Abengoa Solar can design, manufacture and develop key components for proprietary or third-party solar plants. Tower heliostast Parabolic trough collectors HCPV Modules Trackers for photovoltaic modules The new ASUP 140 heliostat offers improved efficiency and can reduce the cost of the solar field by 30 %. The E2 collector, designed by Abengoa, includes improvements for a more efficient assembly and better operating performance and can be purchased directly or as part of a turnkey solar field project. New SpaceTube® collector: SpaceTube® wide-aperture collector. M300™ Module: It has a concentration factor of 1,000x, as well as operating efficiency greater than 30 %. M300S™ Module: It offers a concentration factor of 1,300x, improved thermal performance and the highest level of operating efficiency in the market. M35™ Module: It has a concentration factor of 500x and high efficiency. T140™ Tracker: It has a surface area of 144 m² and is specifically designed for HCPV modules. T30™ Tracker: This model with 54 m² of surface area, high precision tracking and high wind resistance, can be installed without using concrete. Tornasol™ Tracker: With a surface area of 8 m², its low visual impact makes it the best HCPV option for roofs and areas where other trackers may create visibility problems. O & M services Abengoa offers external clients different lines to meet their specific needs: ›› Integral O&M management of STE plants ›› Specific subcontractor services in O & M. ›› Specific products: components, optimization and outsourcing.
  • 24. CSR Annual Report 2014 | 03 Solar technology, sustainable business page 24 ABENGOA SOLAR G4-4, G4-8, G4-PR6 O & M equipment Condor reflectometer Mini Incus spectrophotometer Cleaning vehicles SFMA Test bed for tubes The Condor reflectometer is an innovative portable instrument used to measure the reflectivity of the mirrors of the solar field, with a high degree of accuracy. The Mini Incus device evaluates the optical properties of the receiver tube to improve power generation and increase the associated revenues. Abengoa Solar sells cleaning vehicles for heliostats and for parabolic trough mirrors. Tool for classifying, monitoring and managing solar fields from mobile devices. Created to optimize the management and monitoring of incidents and cleaning works on a solar field, improving real-time information and saving time and resources. High precision service for comprehensively evaluating the optical and thermal properties of the receiver tubes of parabolic trough collectors. It can provide a comprehensive breakdown of the performance of any receiver tube using a contactless system. Industrial applications Abengoa Solar supplies clean power generated by the sun to industrial clients around the world. PT-1 parabolic trough collectors: it operates at a wide range of temperatures (up to 250ºC), and it is built in aluminum for a longer lasting and greater reliability. Abengoa Solar also offers the RMT, a smaller version of PT-1, specially designed for its installation in rooftops.
  • 25. CSR Annual Report 2014 page 25 ABENGOA SOLAR 04 Milestones
  • 26. CSR Annual Report 2014 | 04 Milestones page 26 ABENGOA SOLAR Start of construction of Atacama 1 in Chile, which will have 17.5 hours of storage. Solana, the world’s largest parabolic trough plant with a capacity of 280 MW, completes its first year of operation. Commissioning of Mojave Solar in the Mojave Desert, California (USA), which will generate sufficient power to supply 91,000 homes with clean energy. Commissioning of KaXu Solar One, the first STE plant to come into operation in South Africa. Extension of O&M services for STE plants: Creation of a new vertical area that manages resources across all solar platforms and offers know-how to third parties. Commissioning of the high concentration photovoltaic plant in Coquillon, France, belonging to Compagnie Nationale du Rhône (CNR), for which we supplied the high concentration photovoltaic modules. Contract for 950 GWh/year of power in Chile, which Abengoa will produce from a combination of STE and photovoltaic plants. Implementation of the PE&C (People, Education and Communities) social development program in South Africa and Chile. Signing of the agreement with the Native American tribe, San Manuel Band of Mission Indians, to protect indigenous culture. Solana has received the Governor’s Award for Energy & Technology Innovation as well as the President’s Award in the 34th edition of the Arizona Forward Environmental Excellence awards. These awards recognized the innovative nature of the plant as well as the important environmental benefits that it contributes to the State of Arizona. Solana, in Arizona, has also been awarded the Energy Storage North America (ESNA) Innovation Award, in the commercial-scale projects category. Open Days for the community and employees at the Solúcar platform. Open days for the community and employees at the KaXu Solar One and Khi Solar One plants (South Africa). Development of new thermal storage technology in collaboration with the US National Renewable Energy Laboratory (NREL) and the Colorado School of Mines. Signing of a 20-year power purchase agreement with the South African Department of Energy for the Xina Solar One project; closing of the financing for the project; and start of its construction. Signing of five new collaboration agreements that will improve the municipalities where we are present.
  • 27. CSR Annual Report 2014 page 27 ABENGOA SOLAR 05 Abengoa Solar in figures
  • 28. CSR Annual Report 2014 | 05 Abengoa Solar in figures page 28 ABENGOA SOLAR EBITDA in 2014 in fixed assets in consolidated revenues of local suppliers on average in our main locations invested in R&D&i patent applications of installed power 295.9 M€ 2,087.9 M€ 563.5 M€ More than 90% 351.92 M€ 182 2,283 MW G4-DMA (desempeño económico), G4-9, G4-EC1, ID1, ID3
  • 29. CSR Annual Report 2014 | 05 Abengoa Solar in figures page 29 ABENGOA SOLAR local managers of training on sustainable development and climate change CO2 emissions prevented in H&S training in social investment of corporate volunteering in 2014 99 % 664 hours 623,704 t 13,298 hours 293.5 k€ 332 hours 1,562 employees G4-DMA (desempeño económico), G4-9, G4-EC1
  • 30. CSR Annual Report 2014 page 30 ABENGOA SOLARABENGOA SOLAR 06 Transparency and anti-corruption
  • 31. CSR Annual Report 2014 | 06 Transparency and anti-corruption page 31 ABENGOA SOLAR G4-DMA, G4-56, G4-57, G4-58, G4-SO3, G4-SO4 Over the last few years, Abengoa Solar has worked hard to improve its processes according to criteria that ensure information transparency and establishing controls to combat corruption. Best practices ensure that the values that govern the company’s corporate culture are applied, such as honesty, integrity, good judgement and professional diligence, which are considered essential to the company’s reputation and success. Practices for preventing corruption Abengoa Solar has mechanisms and procedures in place to prevent and detect fraudulent and corrupt practices. These mechanisms have been incorporated into the Common Management Systems, which are continually updated and ensure a balance between the best business opportunities and appropriate risk management. All company employees periodically receive information and training about the procedures to follow and the channels available for reporting any irregular activities they identify. The organization has a variety of instruments for preventing corruption: National and international laws, the recommendations of national and international regulatory bodies and the company’s Code of Conduct define the company’s course of action from a preventive standpoint, while the Whistleblower Channel and other detection mechanisms, such as audits, enable the company to pinpoint potentially fraudulent activities. Anti-corruption law Abengoa Solar is subject to local and international anti-corruption legislation, particularly the US Foreign Corrupt Practices Act (FCPA). This law applies to all companies that operate in the US, regardless of their country of origin, and supplements the internal control requirements established under Section 404 of the Sarbanes-Oxley Act. The FCPA forbids bribes and payments to foreign government officials intended to influence any act or decision resulting in undue advantage, and not only applies to companies’ activities in the USA, but throughout the world. Abengoa Solar’s common management systems are devised to ensure and oversee compliance by all its employees, senior managers and directors with the provisions of any legal regulations related to anti- corruption practices that are applicable to Abengoa, including the FCPA. Abengoa Solar also provides training to its employees as a strategic way of disseminating and raising awareness about the anti-corruption policies that the company should apply. In 2014, a total of 664 hours of training on anti-corruption policies was provided. The company also demands the same standards and practices from its supply chain through its Social Responsibility Code, which all company suppliers are required to observe. This code includes a clause that expressly prohibits any type of corrupt practice that benefits Abengoa. Similarly, Abengoa reinforces its internal controls in all business segments through the Fraud Prevention and Detection Unit – a division of the Internal Audit team that monitors compliance with this law. In 2014, some 15 financial audit reports were issued, in addition to legal audits, among Abengoa Solar’s companies, which included reviews and risk analyses related to corruption, among other aspects. Honesty Integrity Good judgement Professional diligence + + + of tranings on anti-corruption policies 664 hours
  • 32. CSR Annual Report 2014 | 06 Transparency and anti-corruption page 32 ABENGOA SOLAR G4-DMA, G4-56, G4-57, G4-58, G4-HR3, G4-SO3, G4-SO4 Code of conduct Abengoa Solar has a code of professional conduct that defines working relations for employees, senior managers and directors within the company, as well as stakeholder relations. The general aim of the code is to increase transparency and professional diligence by establishing standards of conduct expected from all Abengoa employees. The code is available on the company’s intranet and the corporate website so that it is accessible to anyone that wishes to consult it. It is available in the company’s working languages: English, Spanish and Portuguese. The company promotes application of the conduct described in the code as the corporate culture, applicable to the whole Abengoa Solar team. When new employees join the company, they are provided with a welcome manual that lays out the guidelines that should define their relations and conduct. Moreover, every employee receives specific training on this matter to ensure that they can comply and to promote ethical conduct among every member of the organization. The code is continuously updated to implement best practices. Employees are immediately informed of any changes that are made, via the company’s communication channels. Whistleblower channel The whistleblower channels are an essential part of Abengoa Solar’s commitment to anti-corruption. They are accessible to all of the company’s stakeholders and represent the mechanism through which they can anonymously report any irregular conduct they identify.
  • 33. CSR Annual Report 2014 | 06 Transparency and anti-corruption page 33 ABENGOA SOLAR G4-DMA, G4-56, G4-57, G4-58, G4-HR3, G4-SO3, G4-SO4 In effect and operational since 2007, these whistleblower channels were devised in accordance with the specific requirements of the Sarbanes- Oxley Act: ›› Internal: available to all employees to report any complaints or claims concerning financial statements or other reports, accounting matters, internal controls over the financial information reported, auditing matters or breaches of the Code of Conduct. ›› External: intended to enable anyone outside the company to report irregularities, fraudulent acts or conduct that contravenes the Code of Conduct. This channel is available on Abengoa’s website. In accordance with the whistleblower channel, which defines the parameters and conditions for handling all information received, there is a specific guarantee ensuring total confidentiality for people that use the tool, allowing information to be submitted anonymously without any risk of reprisal for claims made in good faith. The policy dictates that the response protocol must be initiated within 48 hours from the moment that the claim is made. In addition to the whistleblower channels, any infraction can be directly reported to the compliance officer, supervisors, managers and duly authorized personnel. Audits for preventing and detecting fraudulent activities In 2012, Abengoa created the Fraud Prevention and Detection Unit, which operates across every division of its business, tasked with identifying and mitigating the main fraud-related risks to which the company is exposed and investigating any claims received through the available channels. The tasks associated with the preventive audits in relation to fraud are conducted according to an action plan which includes the geographical regions and business segments that are most susceptible to fraud, as well as a review of those areas entailing greater risk in the financial statements. The Unit prepared 15 preventive audit reports in 2014. Additionally, to reinforce its anti-fraud efforts, Abengoa joined the ACFE Corporate Alliance (Association of Certified Fraud Examiners) on November 1, 2014. The association helps companies by providing tools and specific training aimed at combatting fraud and corruption, and also provides resources for obtaining CFE (Certified Fraud Examiner) accreditation for internal auditors involved in detecting fraud and non- compliance. In relation to the prevention of financial risks, fraudulent activities and money-laundering, Abengoa Solar’s policy on investments made in tax havens is based strictly on justified business and economic criteria that are wholly independent of other motivations, such as obtaining tax benefits or tax exemptions. Abengoa Solar does not operate in any of the countries classified as tax havens by Spain’s National Tax Authorities (AEAT). In other short of things, Abengoa Solar does operate in other regions that, although not included in the AEAT’s list of tax havens, are considered by international organizations and observatories to be territories with taxation systems that are more favorable than the system in Spain. It has subsidiaries in Delaware (USA), The Netherlands and Luxemburg. These decisions are strictly based on economic or business grounds or to simplify the corporate or administrative management process and are never related to reasons of tax evasion, money laundering or the financing of illegal activities.
  • 34. CSR Annual Report 2014 | 06 Transparency and anti-corruption page 34 ABENGOA SOLAR G4-46, G4-56, G4-57, G4-58 Risk management Abengoa Solar defines the guidelines for its business based on diligent management of the associated risks in order to create value and improve the company’s competitiveness. Risk management begins with the identification and parameterization of any project prior to its commencement, establishing its tolerance to risk and the likelihood of occurrence. When moving forward with a project, the risk function defines the most appropriate mitigation measures for each type of risk. The Global Risk Management System enables the company to control and determine risks and is intended to establish a common risk culture to help the company achieve objectives in this area and to allow it to act and adapt accordingly. In 2014, the main changes implemented in relation to risk management policies were as follows: ›› Classification of countries where the company operates according to the risk they pose in terms of environment/security, political risk, sovereign rating, transparency index and natural risks. The measures to be applied to each country have been defined according to their rating, and these must be implemented in order to do business in them.. ›› Implementation of a risk analysis methodology with respect to climate change so that all activities can be evaluated and treated accordingly so as to support the sustainability of the business in line with corporate policy. ›› Reinforcement of analysis and control measures in order to prevent the undertaking of tasks and businesses that may violate international rules and damage the interests of Abengoa Solar and its stakeholders. Universal Risk Model The Universal Risk Model is used to gauge the level of risk according to the probability and impact of each risk in every category (strategic, financial, legal and operational risk). It also provides online risk maps through automatic real-time connection with the company’s information. The objective is to obtain a comprehensive risk assessment, designing an efficient response system. Risk measurement is carried out across the whole of Abengoa Solar, by company and by relevant geographic region, and is reviewed every six months. This allows specific action plans to be designed for those risks that exceed the tolerance thresholds defined in each case. The Universal Risk Model is being adapted so that the model, apart from providing the risk map information, will help to obtain and monitor the indicators that each business unit deems significant for its daily business management, increasing the efficiency of the system. Consolidation of CSR risks One of the risks that form part of the Universal Risk Model is the CSR risk. This risk was modified in 2013 introducing the results of the annual CSR risk analysis carried out in the corresponding plants. The analysis is carried out from a dual perspective: One approach assesses 27 risks depending on the type of facility, while the other is taken from a third-party perspective. One of the new developments in 2014 has been the participation of five opinion leaders that represent the facility, or five people with access to the opinion of the community in question, who take a survey, included in the third-party perspective approach, which the people responsible for analyzing the questionnaire subsequently use as an input. Once the risk analysis has been carried out, a mitigation plan is created for the analyzed facilities. In 2014, five of Abengoa Solar’s facilities were analyzed and mitigation plans were drawn up for two of them based on the detected risks. Work is currently being carried out to prepare mitigation plans for the remaining facilities analyzed. The Universal Risk Model is used to gauge the level of risk according to the probability and impact of each risk. “
  • 35. CSR Annual Report 2014 | 06 Transparency and anti-corruption page 35 ABENGOA SOLAR G4-DMA, G4-46, G4-SO1 The CSR risk area of the Universal Risk Model therefore enables to present more consistently the impact on EBITDA and the probability of occurrence, while also improving the ongoing dialogue with the stakeholders, in relation to the projects that affect them. The risks that are included in the CSR risk analysis are grouped into six main areas: ›› Labor practices ›› Health and safety ›› Supply chain ›› Social commitment and local impact ›› Environmental management ›› Ethics, integrity and compliance KPI evolution: In 2014 a total of 164 risks were analyzed at Abengoa Solar’s facilities, compared to 36 examined in 2013. Risk mitigation The company applies the controls needed to maintain the different identified risks within the established limits, determining the strategy to be followed for each one. The risk mitigation systems are applied at different levels: ›› Business-level: each and every procedure (legal, financial, procurement, quality, corporate social responsibility) contains measures for mitigating the inherent risks, and it is obligatory to apply these measures. ›› Project-level: each company project is preceded by a risk analysis and quantification, which extends to all project phases (development, construction and operation). No project is undertaken without conducting this risk analysis, verifying that all potential risks have been taken into account and approval received from those in charge at all decision-making levels. ›› Strategic-level: measuring risks through the Universal Risk Model requires and allows action plans to be defined so that risks are maintained at the tolerance level established in each case. The system compiles the lessons learned, which enables feedback from the risk management system and the application of measures for new projects or businesses according to past experience. Committees on risk management Abengoa Solar’s management monitors the evolution of risks in great detail. A monthly review by a chaired committee enables the evolution of risks to be periodically analyzed and supports correct decision-making for the business. Furthermore, Abengoa Solar’s participation in corporate review procedures enriches the management system and mitigation of the risks defined in the Universal Risk Model. 0 0 1 2 3 4 1 R 32 - 2014 R 32 - 2013 2 3 Impact Probability 4 5 6
  • 36. CSR Annual Report 2014 | 06 Transparency and anti-corruption page 36 ABENGOA SOLAR G4-DMA, G4-SO6, G4-SO7, G4-SO8 Compliance In 2013, Abengoa set up a Corporate Compliance Program1 in every business area with the aim of preventing, detecting, and sanctioning any conduct that could result in corporate or employee liability. It comprises the self-regulating programs voluntarily put in place by the company to adapt to legal requirements, to further illustrate its hallmark commitment to ethical conduct, and to prevent and detect unlawful conduct. The Corporate Compliance Program has been developed based on the Open Compliance and Ethics Group (OCEG)2 model, as a concept of management excellence for key corporate governance processes, risk management and compliance. In 2014, Abengoa implemented the policy relating to this area in a specific Obligatory Compliance Rule (NOC by its Spanish acronym) and its associated control processes. It also developed four specific programs to categorize the actions carried out under the Corporate Compliance Program framework: ›› Anti-trust Compliance Program ›› Data Protection Compliance Program ›› Anti-corruption Compliance Program ›› Criminal Matters Compliance Program Note 1 Further information can be found in chapter 6.2 “Corporate governance, risk management and compliance” of Abengoa’s Corporate Social Responsibility Annual Report. Note 2 OCEG: organization that promotes a system for integrating good governance, compliance, risk management and ethics in companies.
  • 37. CSR Annual Report 2014 page 37 ABENGOA SOLAR 07 Commitment to sustainability
  • 38. CSR Annual Report 2014 page 38 ABENGOA SOLAR 07.1 Supporting our team’s talent
  • 39. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 39 ABENGOA SOLAR G4-DMA 1,562 employees comprise our team In a changing and highly competitive environment, companies search for aspects that differentiate them in a sustainable way over time. Abengoa Solar, with technological development and operations at its core, is committed to attracting, developing and retaining talent as one of the company’s most powerful tools for achieving business success. Every year Abengoa Solar strives to improve its systems to ensure that it attracts the best talent and it prepares annual personal training plans for employees that enable them to develop their capabilities and skills, providing the company with the best professionals. Our teams are managed using an integral management system that encompasses all HR processes, which ensures the effective implementation of its policies related to human capital.
  • 40. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 40 ABENGOA SOLAR Our Team In 2014 the company’s projects led to a 22 % increase in the global workforce compared to 2013, rising to 1,562 employees. Likewise, the company’s local hiring policy improves its knowledge of the countries where we are present and ensures better adaptation to the environment. Spain 68.05 % 21 % 95 % North America 20.36 % 17 % 100 % Latin America 0.90 % 29 % 100 % Africa 5.06 % 24 % 100 % Middle East 4.67 % 22 % — Asia 0.58 % 11 % 100 % Oceania 0.06 % — — Europe 0.32 % 60 % — — Employees: % of the total Women: % per region Local managers: % of the total There are no management personnel in this region G4-DMA, G4-9, G4-10, G4-EC6, G4-LA12
  • 41. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 41 ABENGOA SOLAR G4-10 The average age of the workforce is 36. The distribution by age range shows how the company’s team is consolidating. Abengoa Solar also improved the quality employment contract ratio for its personnel in 2014, with permanent contracts accounting for 53 % of the total, 2 % more than in 2013, reflecting the positive trend since 2012, with 49 % temporary contracts.1 In 2014 the number of female employees fell by two percentage points compared to the previous year, from 22 % in 2013 to 20 % in 2014. The percentage of female executives and managers was 17 % in 2014. Abengoa has set targets to improve the ratios of female executives and managers, which apply to all of its business areas, including solar Note 1 More information in the Appendix II “Social dimension”. power. The company has set a target for 2020 of 20 % women in senior management roles and 35 % in middle management. For reaching this goal, these objectives will be implemented in the different areas of the company, including Abengoa Solar. 2012 34 % 15 % 7 % 2 % 1 % 1 % 44 % Age 20-30 Age 31-40 Age 41-50 Age 51-60 Age +60 30 % 16 % 6 % 46 % 28 % 18 % 5 % 45 % 0 % 10 % 20 % 30 % 40 % 50 % 2013 2014 Distribution by contract type Women/Men Distribution by contract type Women/Men Indefinite Temporal Internship position Man 643 578 25 Women 164 131 21 Men Women Senior managers 34 4 Middle managers 120 27 Engineers and other degree holders 361 152 Assistant and technicias 73 62 Operators 633 50 Interns 25 21
  • 42. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 42 ABENGOA SOLAR Employee commitment Abengoa Solar is aware that business excellence is achieved through the work of a talented and committed team. The company therefore pays special attention to employee turnover indicators. In 2014 turnover was 6.5 % compared to 1.9 % the previous year. Of these departures, 1 % was deemed to be critical and mostly related to employees in the 40-50 age bracket. The turnover ratio of critical employees by gender was 0.22 % for men and 0.15 % for women. To identify possible areas for improvement, the company uses questionnaires and interviews with employees that voluntarily decide to leave the company. Relative to return workers after enjoying maternity leave and paternity leave, it is observed that the percentage of employees who took up their posts amounts to 98 %, similar to that of previous years. Training Abengoa Solar is committed to continuously developing the knowledge and professional skills of its team as a way of ensuring success in the highly competitive solar sector. Training plans To respond to the training needs of the workforce, Abengoa Solar prepares annual personal training plans based on each employee’s competence analysis as part of the company’s Strategic Plan. Abengoa Solar invests significant resources in training its employees as one of its key objectives in the area of human resources. This is reflected in the increase in the number of training hours provided as well as higher quality courses. A total of 192,962 hours of training were given during the year, 27 % more than in 2013. The training provided by the company covers general issues as well as specific training plans for different professional categories and functions. Abengoa Solar fully supports mobility and access to training for all its employees, encouraging skills development via online training. In 2014, 50,285 hours were dedicated to online courses, 36 % more than in 2013. The distribution of training hours by training category in 2014 and the evolution compared to 2013 is as follows: G4-DMA (empleo), G4-LA1, G4-LA3, G4-LA9, G4-HR2 Parental leave   Nº of employees who excercised their right to parental leave Nº of employees who returned to work following parental leave Nº of employees who remained their post after twelve months Men 39 39 37 Women 15 14 13 2014 2013 Total 2013 151,490 hours 14,090 23,211 13,298 52,82135,718 64,680 89,542 11,750 23,122 16,220 Total 2014 192,962 hours Languages Corporate EH&S General Professional practices of skills development trainings 192,962 hours
  • 43. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 43 ABENGOA SOLAR G4-DMA, G4-LA10 Additionally, Abengoa Solar benefits from the training programs that Abengoa offers to the whole organization, participating in the success achieved by Abengoa University. Since 2012, Abengoa University has been a catalyst for strengthening the strategic capabilities of Abengoa’s managers, developing their skills to high levels of excellence. Abengoa Solar has systems that enable it to measure the effectiveness of its training plans, identifying whether they are aligned with students’ needs in terms of improving their performance as well as business results. In 2014 this exercise revealed an employee global satisfaction score of 3.14 out of 4.00 for the training provided. Internship program Abengoa Solar also promotes talent among those looking for their first opportunity in the employment market by offering the chance to acquire practical experience that will effectively use their professional skills while sharing the values and principles of the organization’s corporate culture. Every year the company signs various agreements with different higher education institutions. The training integration model provides interns with a personal tutor who supports their personal and professional needs. A total of 79 students participated in this program in 2014. Moreover, this work experience was supplemented with 93,456 hours of theoretical training, which strengthens and complements the abilities developed during the practical part of the program. Grants for Vocational Education Abengoa Solar is also committed to offering professional development opportunities for those enrolled in vocational education at centers close to its solar plants, which enables it to strengthen local talent and encourages local hiring in the community. In 2014, the company signed five agreements with vocational education centers and provided more than 1,450 hours of work experience at solar plants.
  • 44. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 44 ABENGOA SOLAR G4-DMA, G4-LA10, G4-LA11 Attracting and retaining talent Obtaining and retaining the best talent in the company is essential for achieving business excellence. Abengoa Solar makes significant investments in tools that enable it to successfully implement its policy for attracting and retaining talent. The current market highlights the impact that teams can have on the company’s business. Abengoa Solar therefore tries to strengthen the mechanisms available and to develop new ways that allow us to attract the best professionals. In 2014, the company has boosted its presence on the internet and social networks as well as improving its online positioning, which has resulted in an increase in the number of professional applications received via digital media. The company also measures employee satisfaction using the workplace satisfaction survey, which it carries out every two years. This tool enables the company to discover employees’ perceptions, identify areas for improvement and undertake initiatives designed to improve conditions for employees, helping to retain the company’s talent. In 2014, a total of 755 surveys were completed, with 72.1 % participation. Marie Curie Postdoctoral Fellowship Abengoa Solar is a technology company that seeks out the best talent for its proprietary technology research and development and innovative solutions that improve existing solutions, as the key to its competitive advantage in the sector. In 2014, the company awarded the prestigious Marie Curie Postdoctoral Research Fellowship, promoted and financed by the European Commission, thanks to the participation of Abengoa Solar NT in the European R&D Mantodea project. The fellowship allows the selected person to participate in the research and development of an Abengoa project associated with the European Union during a two year period. Evaluation tool Who is it for? What does it involve? Scope of the evaluation Performance management All employees Every employee is evaluated annually by his or her direct superior based on a previously defined competency profile, according to position and responsibilities. 1,022 people were evaluated using this system over the course of the year. 360º Feedback Personnel on the Executive Development Program Participants include superiors, colleagues, collaborators and the individual being evaluated, and the review is carried out by having all participants complete identical questionnaires. In 2014, 51 managers were evaluated, involving 293 people including superiors, colleagues and collaborators. Executive Intercom- munication Program Executives and managers Program for ascertaining staff perceptions of their own personal and career development. A total of 88 people participated in the program in 2014.
  • 45. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 45 ABENGOA SOLAR G4-DMA, G4-11, G4-LA4, G4-LA8, G4-LA12, G4-HR2, G4-HR3, G4-HR5, G4-HR6, G4-HR7 Protection of human rights To ensure that its employees’ rights are protected, every person working for Abengoa Solar is subject to supra-company employment regulations, regardless of the nature of their activities or the countries in which they work. In addition to each country’s legislation, the regulations are especially important thanks to the collective bargaining agreements of the sector, territory or the company itself, signed with workers, their representatives or unions, as appropriate. Abengoa also guarantees that employees will be previously informed of any structural or organizational change that occurs in the company, as a basic labor right, whether at an individual level or via their representatives, within the notice periods established by legislation and in collective bargaining agreements. The whole organization is expected to take the initiative in improving business processes, working and environmental conditions, and problem- solving. To that end, the company promotes the use of different channels and IT tools, such as Abengoa Easy Management; suggestions via the Employee Portal; and satisfaction surveys. To prevent incidents related to human rights breaches, the company provides training courses about human rights and anti-corruption matters. In 2014, a total of 1,328 hours of training were given to company employees on these subjects. Diversity and equal opportunities Abengoa Solar makes an explicit commitment to equal opportunities and non-discrimination regardless of gender, race, color, religion, opinion, nationality, economic status or any other circumstances. These principles are expressly stated in the company’s different policies (regarding hiring, recruitment, training, performance review, promotion, remuneration, working conditions, family-work life balance, prevention of harassment, etc.). To ensure equal treatment and opportunities with respect to gender, and to prevent any situations that might constitute labor discrimination, whether directly or indirectly, Abengoa created its own Equality Framework Plan in 2008. This applies throughout the company and compliance is evaluated using the established channels and by annual visits to companies to verify compliance with the SA 8000 guidelines. As part of this plan, the organization has a protocol for reporting workplace harassment to deal with situations that could be considered as discriminatory. In addition, Abengoa Solar takes part in the Equality Committee organized by Abengoa’s corporate area, which is tasked with monitoring gender equality issues at a global level. In 2014, the Equality Committee met twice for the purpose of analyzing and evaluating the company’s status and to draw up measures to achieve the 2020 target set by Abengoa in this area.2 Similarly, Abengoa Solar is committed to fully integrating disabled people into the company through its social responsibility work. The company is working to incorporate disabled people into social and working life by promoting employment, integration and accessibility. To this end, it supports initiatives aimed at offering employment integration for groups that suffer from exclusion due to various reasons and it prioritizes people above their limitations. Note 2 Further information is available in Abengoa’s Corporate Social Responsibility Report. in trainings on human rights issues 664 hours
  • 46. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 46 ABENGOA SOLAR G4-DMA, G4-EC5, G4-LA12, G4-LA13, G4-HR3 Remuneration policy The company’s remuneration policy strictly complies with all legislation and ensures equal pay and equal treatment and opportunities between men and women, in line with the principles of equality and non- discrimination required by the company’s policies and commitments. Employee remuneration is set in line with the salary scale and legislation of each region where Abengoa Solar operates. The following table shows the percentage paid above the minimum wage for the categories of degree holders and administrative staff, as an indicator of the competitive salaries offered by the company. 2014 % paid above the minimum wage, by category Country Degree holders Administrative staff Spain 184 % 39 % USA 128 % 68 % Africa 519 % 395 % Chile 340 % 118 % The company’s remuneration policy offers supplementary variable remuneration to certain employees, which is used to reward professionals in the company according to their performance and the degree of achievement of their personal targets. A total of 46.7 % of employees benefit from variable remuneration, based on targets. Overage monthly salary Men (€) Women (€) Entry level graduate in Spain 1.838 1.838 Entry level graduate in USA 2.220 2.220 Entry level graduate in South Africa 1.123 1.123 Entry level graduate in Chile 1.450 1.450
  • 47. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 47 ABENGOA SOLAR G4-DMA, G4-DMA, G4-EC3, G4-LA2, G4-LA5 Employee benefits Abengoa Solar offers numerous benefits to its employees, which contribute to improving their quality of life. These benefits consist of a wide range of services and advantages that are adapted to each region and workforce. Some of the benefits offered to company employees are listed below. Occupational health and safety Ensuring optimal working conditions with regards to occupational health and safety is a top priority for the company. Abengoa therefore implements occupational health and safety systems that are regularly audited by authorized entities that certify the degree of compliance with legislation and their effectiveness. These systems are based on four pillars: ›› Principles of Abengoa’s Occupational Health and Safety Policy ›› Legal provisions that apply in the country where the company operates ›› Contractual specifications of the company’s clients in this area ›› Requirements of the norm OHSAS 180013 , international standard on occupational health and safety management systems. Abengoa Solar has certified all of its solar facilities and offices in Spain under the OHSAS 18001 standard. In 2014, work was carried out to develop and implement IT tools, such as Abengoa Easy Management (AEM), which represent a major step forward in terms of controlling occupational risks in companies, work centers and at works sites, and especially in the construction and commissioning of Abengoa’s major projects. In order to achieve continuous improvement in health and safety matters, the company convenes its health and safety committee every month, which involves senior management and occupational health and safety managers who analyze accident ratios, their evolution and the implementation of reduction plans. Moreover, the activities included in the Walk and Talk program regularly examine work processes, striving to improve how they are managed. Note 3 OHSAS 18001: International certification for occupational health and safety management systems. Restaurant services at the headquarters in Seville (Spain). Medical service to improve employee healthcare at work centers with more than 300 people. Gymnasium at the headquarters in Seville (Spain). Kindergarten service at the headquarters in Seville (Spain). Free transport services at the headquarters in Seville (Spain). Tax advice. Free financial and tax advice for employees in the USA La Antilla summer residence available to all company employees, at subsidized prices, during the summer months in Huelva (Spain).
  • 48. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 48 ABENGOA SOLAR G4-DMA, G4-LA6, G4-HR4 The company believes that training is a key tool for effectively implementing a culture of prevention in its working practices. To this end, in 2014 Abengoa Solar provided a total of 13,298 hours of occupational health and safety training to its employees, 13 % more than in 2013. The company has numerous communication channels for strengthening the preventive culture within the organization. The company’s technical staff exchange their experiences and best practices via the Colabora platform, while the monthly publication of health and safety newsletters also helps to disseminate the message throughout the whole workforce. Awareness initiatives: ›› Fourth edition of “Safety Day”. For the first time, in 2014 personal protection equipment suppliers took part in various hands- on sessions in order to maximize the effectiveness of use of their equipment. ›› Awards for the best initiatives related to health and safety submitted by employees. ›› Recognition of teams that have obtained the best safety records at their solar facilities. ›› Awareness messages placed in strategic locations at solar plants. ›› Regular safety warnings that demonstrate the most common failings and accidents, accompanied by the corresponding preventive measures. This system, implemented at all operational solar plants, receives common feedback information, reducing the risk of duplicating incidents at other plants. Abengoa Solar continues to develop resources that contribute to achieving the targets set in its “zero accident” policy, based on supervision, monitoring and training. Thankfully there were no fatal accidents in 2014. Health and safety indicators Frequency rate Severity rate Nº of work-related accidents with medical leave of more than one day 2014 17.84 0.13 16 2013 26.14 0.13 14 2012 14.56 0.10 5 Working days lost due to accidents Total absenteeism for illness (%) Total absenteeism for work-related accidents (%) 2014 344 0.79 0.12 2013 269 0.59 0.12 2012 177 0.46 0.11
  • 49. CSR Annual Report 2014 | 07.1 Supporting our team’s talent page 49 ABENGOA SOLAR G4-DMA, G4-LA6, G4-LA7 Some activities, due to the country where projects are located or the associated processes, may result in employees being exposed to certain risks or contagious diseases for which the company establishes various preventive measures. These diseases include malaria, cholera or tuberculosis, which pose the greatest risk to employees. To prevent them, Abengoa Solar vaccinates personnel that are temporarily or permanently based in countries at risk of these and other diseases; specific medical checks and tests are carried out; and training is given on preventing and contracting these diseases. In relation to occupational diseases, legionnaire’s disease can be contracted in working environments for anyone working in laboratories. Abengoa Solar implements risk minimization plans as well as providing continuous training and prevention and monitoring of these and other diseases. Chemical treatments are also employed to prevent the appearance of this disease as well as obligatory use of protective equipment. in H&S training 13,298 hours
  • 50. CSR Annual Report 2014 page 50 ABENGOA SOLAR 07.2 Connecting with the social environment
  • 51. CSR Annual Report 2014 | 07.2 Connecting with the social environment page 51 ABENGOA SOLAR The current trend is to carefully scrutinize companies’ performance in relation to their environment, their capacity to interact with stakeholders and the inclusion of stakeholders’ opinions in their decision-making. The increase in the understanding of the concept of impact –whether positive or negative– and the management of these impacts directly affects the stability of a business. Furthermore, companies’ capacity to influence their supply chain and the involvement of clients in decision- making requires a management model and a business strategy that are connected to the social environment. Abengoa Solar uses different communication channels to connect with its stakeholders4 , which enable us to create stable mutual relationships, communicate information about the company and identify the expectations of the social and economic agents that the company interacts with. This chapter will analyze the main actions carried out by the company within the framework of its relations with its suppliers, clients, the communities where it operates and society in general, as well as the way in which it works to minimize any negative impacts and boost the positive effects. Note 4 A map of Abengoa Solar’s stakeholders can be found in chapter 2, “About this report”.
  • 52. CSR Annual Report 2014 | 07.2 Connecting with the social environment page 52 ABENGOA SOLAR G4-26 From Abengoa to suppliers: ›› Abengoa Solar website. ›› Structured procedure for measuring supplier efficiency. ›› Safety management system tool. ›› Visits to suppliers. ›› Annual report. ›› Social networks. From suppliers to Abengoa: ›› Satisfaction surveys. ›› Structured procedure for receiving information and opinions from suppliers. ›› Abengoa Easy Management (AEM) software for managing the company’s decision-making and action plans. ›› Safety management system tool. ›› Stakeholder contact e-mail. ›› External whistleblower channel. ›› Opinion poll from the Annual Report. ›› Interviews. ›› CSR contact e-mail (rsc.solar@ abengoa.com). ›› Social networks. From Abengoa to society: ›› Abengoa Solar website. ›› Annual report. ›› Focus-Abengoa Foundation website. ›› Press releases. ›› Corporate Social Responsibility Department. ›› Meetings with NGOs and educational institutions. ›› Open days. ›› Trade fairs, forums and conferences. ›› Corporate blog. ›› Social networks. From society to Abengoa: ›› Press releases. ›› Communication Department. ›› Corporate Social Responsibility Department. ›› Meetings with NGOs, the media and educational institutions. ›› Open days. ›› Trade fairs, forums and conferences. ›› Stakeholder contact e-mail. ›› Corporate blog. ›› CSR contact e-mail (rsc.solar@ abengoa.com). ›› External whistleblower channel. ›› Opinion poll from the Annual Report. ›› Opinion poll. ›› Interviews. ›› Social networks. From Abengoa to local communities: ›› Abengoa Solar website. ›› Annual report. ›› Focus-Abengoa Foundation website. ›› Press releases. ›› Corporate Social Responsibility Department. ›› Meetings with NGOs and educational institutions. ›› Open days. ›› Trade fairs, forums and conferences. ›› Corporate blog. ›› Social networks. From local communities to Abengoa: ›› Communication Department. ›› Corporate Social Responsibility Department. ›› Meetings with NGOs and educational institutions. ›› Open days. ›› Trade fairs, forums and conferences. ›› Corporate blog. ›› CSR contact e-mail ( rsc.solar@ abengoa.com). ›› Assessment of beneficiaries of social action programs. ›› External whistleblower channel. ›› Opinion poll from the Annual Report. ›› Interviews. ›› Stakeholder contact e-mail. ›› Social networks. From Abengoa to clients: ›› Abengoa Solar website. ›› Focus groups with clients. ›› Safety management system tool. ›› Publicity and marketing. ›› Trade fairs, forums and conferences. ›› Periodic visits to clients. ›› Annual report. ›› Social networks. From clients to Abengoa: ›› Focus groups with clients. ›› Satisfaction surveys. ›› Problem Resolution Report software. ›› Abengoa Easy Management (AEM) software for managing the company’s decision-making and action plans. ›› Safety management system tools. ›› Stakeholder contact e-mail. ›› CSR contact e-mail (rsc.solar@ abengoa.com). ›› Product training days. ›› External whistleblower channel. ›› Opinion poll from the Annual Report. ›› Interviews. ›› Social networks. Communication channels with stakeholders5 Note 5 The identified stakeholders have been grouped into four main social and economic groups for the purpose of publishing the communication channels diagram.
  • 53. CSR Annual Report 2014 | 07.2 Connecting with the social environment page 53 ABENGOA SOLAR G4-DMA, G4-EN33 Outsourcing: This makes it possible to focus on improving knowledge, improving the performance of the core business and incorporating highly professional service by directly involving suppliers in day-to-day operations. Leadership: The continuous search and contracting of the leading suppliers in their sector ensures innovative solutions that contribute improvements, with a strong technology component, which enables Abengoa Solar to maintain its high levels of competitiveness and quality. Globalization: Contracting common suppliers across different production centers leads to a more developed and uniform service with standardized scopes. These synergies facilitate the application of global solutions that translate into cost optimization when managing and developing the company’s service and procurement process. Local development: Focusing on developing and involving local suppliers ensures coverage of the most essential and basic needs, with the subsequent flexibility in relation to consumption and response times. All of this has a positive impact on the commercial and industrial growth of the regions where we operate and ensures close relations with these regions. The integration of proposed improvements from suppliers leads to continuous progress in productivity and performance. Setting prices based on results is a basic principle of business commitment, but must be accompanied by the integration of human rights and business ethics into the policy on environmental safety. Every year Abengoa Solar works with its supply chain to maintain its relationships based on trust and mutual benefit which, in addition to ensuring the quality of its products and services, promotes its culture of responsible management and encourages ethical conduct between members of the supply chain. Supplier relationships are governed by five basic guidelines: Responsible commitment to the supply chain
  • 54. CSR Annual Report 2014 | 07.2 Connecting with the social environment page 54 ABENGOA SOLAR G4-DMA, G4-EN33, G4-HR1 Supply chain management Abengoa Solar is aware of its responsibility in the supply chain and understands the importance of implementing and promoting high levels of social responsibility across all of its activities, including the promotion of the principles of the Global Compact, the Universal Declaration of Human Rights, the Global Reporting Initiative (GRI) and the company’s own code of conduct, ensuring compliance with these and committing to uphold a relationship of trust and mutual benefit with its suppliers. It therefore provides its suppliers and contractors with the necessary resources to comply with these principles by providing advice and requiring them to sign up to the following initiatives, among others: Supplier emissions reporting for the greenhouse gas management system (GHG) Abengoa Solar requires all its suppliers to sign an agreement to implement a greenhouse gas emissions reporting system (GHG), through which all suppliers are required to report the CO2 emissions associated with each order placed by the company. If a supplier does not have this information, the company allows it six months to implement a system that enables it to report the emissions associated with the products and services it supplies. To ensure a responsible commitment between the parties, breaches in GHG reporting lead to measures that temporarily block new requests with the supplier until the reporting data has been correctly sent. Repeated breaches could lead to the supplier’s definitive exclusion from the supply chain. In 2014 authorization was withdrawn from four authorized suppliers due to deficiencies in their GHG emissions reporting. Abengoa Solar helps suppliers to calculate their emissions and offers them continuous training that enables them to record their environmental impact in terms of CO2 . Signing of the Abengoa Social Responsibility Code To manage its business with the highest degree of integrity and utmost respect for those that may be affected by its activities, Abengoa Solar requires all of its suppliers to sign the Social Responsibility Code for Suppliers and Subcontractors, which contains 11 clauses based on the principles of the United Nations’ Global Compact and inspired by the international SA8000 standard.6 By signing this agreement, the supplier not only agrees to manage its business based on the code, but also to be fully prepared to submit to an audit or another type of inspection by Abengoa to verify compliance with these principles. In 2014, 135 new suppliers signed the Social Responsibility Code. Labor Social Responsibility Policy and implementation of a management system Abengoa’s Labor Social Responsibility management system has been designed according to the SA8000 standard, which means that 100 % of Abengoa Solar’s companies have implemented a certifiable system in accordance with this standard. One of the objectives of this management system is to require suppliers and contractors to comply with Abengoa Solar’s guidelines on labor social responsibility, establishing evaluation and selection procedures based on social responsibility criteria and developing control mechanisms to ensure compliance with this policy. Note 6 SA8000: Voluntary certification of employment conditions. In 2014, 135 new suppliers signed the Social Responsibility Code. “
  • 55. CSR Annual Report 2014 | 07.2 Connecting with the social environment page 55 ABENGOA SOLAR G4-DMA, G4-EN32, G4-LA14, G4-HR4, G4-HR5, G4-HR6, G4-HR9, G4-HR10, G4-HR12, G4-SO9 Responsible Procurement System To fulfill the commitments regarding its supply chain, Abengoa continues to develop a system for responsibly managing its purchases, which Abengoa Solar is incorporating into its management model. This process has been designed to be undertaken in different stages depending on the level of criticality. The system includes sustainability criteria in supplier evaluations and consists of tools and procedures that enable Abengoa to analyze the level of risk of its suppliers. By conducting corporate internal audits, Abengoa tries to prevent conduct that may run contrary to the performance principles established by the company. The system is being implemented in the three stages: supplier evaluations, critical supplier audits and supplier ratings. 1. Supplier evaluations: risk identification and management Abengoa Solar treats supply chain sustainability as a management framework that enables it to mitigate risks and identify opportunities. It is therefore a key element for the company’s reputation. Higher risk suppliers are analyzed every year to evaluate the supply chain in Abengoa Solar’s operations, monitoring suppliers’ involvement and acceptance of corporate policies, determining risk levels and establishing mitigation measures. This analysis takes into account different variables, such as the supplier’s country, the nature of the product or service supplied or the type of activity it carries out, as well as more subjective aspects derived from the company’s knowledge of its suppliers. To determine the level of risk of the supplier’s country, Abengoa uses recognized international indices for human rights (child labor, discrimination and freedom of association, among others), corruption and observance of political and civil rights. One of the improvements made this year included changes to the aspects analyzed, in order to include new social and environmental aspects, increasing the number of criteria to consider when performing evaluations from 7 to 19. In 2014, a total of 782 suppliers were analyzed, none of which were identified as high risk suppliers.7 2. Supplier audits The aim of this phase is to determine the degree to which Abengoa Solar’s suppliers comply with the principles set out in the Social Responsibility Code. To achieve this, an auditing procedure was created to define the aspects to be reviewed and establish the scope of the work according to the degree of supplier criticality, allowing analyses to be carried out via self-assessment questionnaires or via remote or in-person audits that include visits to the supplier’s facilities. The audit phase is used when suppliers are identified as being significant risk. 3. Supplier ratings The last phase of this process consists of rating suppliers based on the evaluation performed. This enables Abengoa Solar to reward best practices and exclude suppliers that fail to comply with the requirements established in the Social Responsibility Code. Abengoa Solar may end its relationship with any supplier that demonstrates “non-compliance”, unless problems are corrected. In 2014, the company did not have to terminate any supplier relationships. Note 7 High risk supplier: suppliers that are at risk of breaching the Social Responsibility Code having been analyzed according to specific variables, such as country of location, type of product or service supplied, type of activity or labor practices. analyzed in 2014 782 suppliers
  • 56. CSR Annual Report 2014 | 07.2 Connecting with the social environment page 56 ABENGOA SOLAR G4-DMA, G4-EC9, G4-EN32, G4-LA14, G4-SO9 In addition, every year the company performs internal evaluations of suppliers that account for 80 % of billing, analyzing their relationship with the company, their level of commitment, the quality of the product or service supplied and any unresolved claims. During this process, improvement opportunities and weak points are identified that are managed by the company. Local suppliers Working with local partners enables the company to strengthen and support a local and stable economy, helping to improve living conditions in the regions in which it operates by creating direct and indirect employment and indirectly attracting investment. Country Local suppliers (%) 2014 Local suppliers (%) 2013 Spain 88 % 91 % USA 93 % 87 % In 2014 a total of 66 % of purchases were made from local suppliers. Entering new markets creates challenges when trying to obtain high-tech components locally, which has affected the overall figures compared to 2013. Supply chain in South Africa South Africa is one of the company’s strategic countries in terms of its natural resources. In 2014, local purchases accounted for more than 90 % of the total. To create local wealth, Abengoa Solar is currently developing an economic stimulus program that will directly impact the region’s business sector.