SUSTAINABLE MANAGEMENT REPORT We Thank the Teams That Supported the Drafting of This Management Report

SUSTAINABLE MANAGEMENT REPORT We thank the teams that supported the drafting of this management report

» Presidency

» Sustainable Development Management

» Internal Audit Management

» Planning and Performance Management

» Vice Presidency of Operations

» Vice Presidency of Commercial Development Credits » Legal and Compliance Vice Presidency

» Vice Presidency of Construction

» Financial Vice Presidency

» Supply and Services Management

» Communications Management

» Human Affairs Management

Edition: Planning and Performance Management

» Communications Management

Photograph: Photo bank, TGI S.A. ESP

Consulting, drafting and design: CREO consultores SAS

In furtherance of the provisions of Law 603 of 2000, TGI S.A. ESP declares that in 2018, it has strictly complied with the rules on protection of intellectual property and copy- rights while developing its activities, especially in the acquisition of software licenses.

FIELD COLLABORATOR Mariquita, Tolima Contents 03 02 01 05 04 Corporate Governance sustainability Creation ofshared valueand Organization Profile About thisreport 5.5 Riskmanagement 5.4 Ethicalandtransparentaction 5.3 HowdoesTGI assessitscommitment vis-à-visthisissue? 5.2 5.1 4.2 4.1 3.2 Transportadora deGasInternacional 3.1.1 3.1 Message from thepresidents 5.4.2 2018InitiativesandProjects 5.4.1 Anti-corruptionmanagement 5.3.1 Governancestructure 5.2.2 5.2.1 2018InitiativesandProjects 3.2.4 Sectorcontext 3.2.3 Businessopportunitiestoexpandthesystem 3.2.2 Gaspipelinenetworkandtransportcapacity 3.2.1 Value proposals Profile of Grupo Energía Bogotá. ProfileofGrupoEnergíaBogotá. Whyisitrelevant? Strategic engagementwithourstakeholders Howisitmanaged? Materiality Morethan120yearsofhistory 2019Challenges 38 18 14 32 40 40 40 49 46 36 45 42 42 34 8 47 41 20 20 24 25 23 22 21 06 07 10 08 09 Economic valuegenerated 6.3 HowdoesTGI assessitscommitmentvis-à-visthisissue? 6.2 Howisitmanaged? 6.1 7.3 7.2 7.1 and efficiency Operations withintegrity, reliability Construction ofthevalueproposal 9.3 9.2 9.1 results-driven Team withtalent, motivation and Growth andmarket development 10.2 HowdoesTGI assessitscommitmentvis-à-visthisissue? 10.1.1 Howisitmanaged? 10.1 8.3 HowdoesTGI assessitscommitmentvis-à-visthisissue? 8.2 8.1 6.3.1 Mainfinancialresults Whyisitrelevant? 7.2.1 2018InitiativesandProjects Whyisitrelevant? 9.2.2 2019Challenges 9.2.1 10.2.3 Training anddevelopment 10.2.2 Benefitsforworkers 10.2.1 Employment 8.2.2 2019Challenges 8.2.1 2018InitiativesandProjects Howisitmanaged? HowdoesTGI assessitscommitmentvis-à-visthisissue? HowdoesTGI assessitscommitment vis-à-visthisissue? Whyisitrelevant? Whyisitrelevant? Howisitmanaged? Howisitmanaged? Whyisitrelevant? 2018InitiativesandProjects 90 66 54 82 74 80 80 84 84 84 68 68 86 69 69 94 99 58 56 56 92 92 93 87 97 76 76 76 57 11 Occupational safety and health 102 15 GRI content index and data tables 142

11.1 Why is it relevant? 104 11.2 How is it managed? 104 11.2.1 2018 Initiatives and Projects 105 11.3 How does TGI assess its commitment vis-à-vis this issue? 105 11.3.1 Representation of workers in formal committees worker health and safety 106 company 11.3.2 Health and safety issues addressed in formal agreements with unions 106 11.3.3 Occupational Safety and Health Indicators 107

12 Territory transformation 110

12.1 Why is it relevant? 112 12.2 How is it managed? 112 12.2.1 2018 Initiatives and Projects 115 12.2.2 2019 Challenges 121 12.3 How does TGI assess its commitment vis-à-vis this issue? 123

13 Development of contractors and suppliers 124

13.1 Why is it relevant? 126 13.2 How is it managed? 126 13.3 How does TGI assess its commitment vis-à-vis this issue? 127 13.3.1 Suppliers 127

14 Environmental Responsibility 130

14.1 Why is it relevant? 132 14.2 How is it managed? 132 14.3 How does TGI assess its commitment vis-à-vis this issue? 133 14.4 Environmental Management 133 14.4.1 Water 133 14.4.2 Power 134 14.4.3 Biodiversity 135 14.4.4 Emissions 137 14.4.5 Residues 140 2018 Sustainable ManagementReport 8

Message from the presidents TRANSPORTADORA DE GAS INTERNACIONAL (TGI). 2018 HAS BEEN A YEAR FULL OF GOOD NEWS FOR THE 102-14GRI rational results. rational results. the ability of our team to continue with positive ope- also commitsustothebondholders,whotrustedin payment ofinterestsforthenext10years.Thisresult the companysavings for 11.25 million dollarsin the former oneat5.70%. Thisoperationgeneratesto the offer. Thefinalratewas5.55%,improvingthe 750 milliondollars, reaching a demand of 3.5 times lombian corporatebondsin2018,foranamountof completed thelargestinternationalissuanceofCo- remained investmentgradeandwesuccessfully in 2018reached137milliondollars.Ourriskratings in Colombiaandstandsoutforitsnetprofit,which pany, whichremainsasoneofthelargestcompanies During 2018weconfirmedthestrengthofourcom- trate atwork. discipline that each of our 424 employees demons- people, care, superiorperformanceand operational ment Report areachievedthankstothepassionfor The resultspresentedinthisSustainableManage- tors andcontractors. sion thatincludeszeroincidentsamongcollabora- goals andwehavesetanevenmoreambitiousvi- lities. We haveprogressedsatisfactorilywithour our employeesandcontractors.We hadzerofata- outstanding resultsinaccidentpreventionamong The first,andmostimportant,isthatweachieved

Through thegenuine, Development StrategyDevelopment design ofourSustainable fundamental inputsfor the communities, we identify continue to build withthe relationship thatwe transparent andpermanent WITH THE COMMUNITIES GENUINE ENGAGEMENT Manizales, Caldas 9 The acquisition Consolidating our Key Issue, where we decla- of carbon credits re that TGI creates and provides “Midstream” hydrocarbon solutions to large users, produ- corresponding global standards, sharing experiences and influen- cers and energy market developers, connec- to 12 thousand cing the national agenda of natural gas promotion. ting sources with consumption centers through natural long-term relationships and intensive business 741 From the social perspective, and in accordance with gas-powered buses will be tons is part of our in capital, we develop projects and strategic ini- the guidelines of the Grupo Energía Bogotá, through incorporated into Transmilenio: tiatives that allowed us to: compensation plan. the genuine, transparent and permanent relationship more clean air for Bogotá. that we continue to build with the communities, we Expand the benefits of natural gas; we expanded identify fundamental inputs for the design of our Sus- our operational capacity by 57 million cubic feet tainable Development Strategy with four clear sco- per day (MMpcd) and increased the reliability pes of action: the corporate strategy of climate resi- and supply in the service provision. The Cusiana lience, the transformation of territories towards the - Apiay - Ocoa projects, which include the gas use of cleaner energies, the promotion of their use compression stations of Villavicencio and Para- among different social actors, and the promotion of ses and heavy vehicles dedicated to natural to the VNG system. During the first quarter of 2019 tebueno, have contributed to this achievement; innovation and collaboration in the sector as a path gas, with the incorporation of 741 gas-powe- we will reach 40 vehicles with this system, meeting Zarzal - La Tebaida Loop, which adds 37 km of towards a sustainable economy. gas pipeline and impacts the regions of Valle del red buses for Transmilenio as a remarkable our goal of having 100% of the operation and mainte- Cauca and Quindío; and the subfluvial crossing aspect: more clean air for Bogotá. nance fleet using natural gas. Furthermore, TGI also In 2018, we undertook a process to assess the operates with natural gas: we carried out the conver- company’s leaders, aimed at strengthening skills to in the Magdalena River, with which we guarantee Secondly, we identified a potential increase sion of four backup plants in the operational allow us us to fulfill corporate objectives and to be service reliability in the interior of the country. in natural gas demand of around 100 MMc- work centers, to Bi-Fuel systems. promoters of change management. We carry out fd to be used in industry, cities, mobility and Regarding the business perspective, we had a process of reflection, definition and promotion generation. From the above we have alre- One of the most relevant advances in important advances in the promotion of the use to the attributes of our organizational culture. The ady managed to activate a significant con- relation to the market in 2018 was the of natural gas. In the first place, thanks to the passion for people, for caring, for superior perfor- sumption percentage of nearly 20% and we way we relate to the sector, giving a articulated work of the natural gas chain, where mance and for operational discipline guides our are proposing actions to ensure the thermal new momentum to the natural gas we actively participate with companies, authori- organizational culture and will allow us to continue consumption of natural gas. agenda in the country with actions ties, regulators and other actors, we managed fulfilling our goals. such as the TGI 2018 Gas for Pro- to consolidate in Colombia cities such as Pal- This increase in demand also leads to our mira, Medellín and Manizales a fleet of 831 bu- gress Forum, the campaign “Use commitment to support the identification of Gas, is Natural”, and the promotion new sources of natural gas supply for the of joint efforts with different ac- country. We support the National Govern- tors in the chain. We also con- ment in its promotion of exploration in the solidate our sectoral ties in different modalities, on and offshore and the international arena with also in its reliability policy for domestic su- our active participation in pply, with the new gas import infrastructure the International Gas Union in the Colombian Pacific. (IGU), which allow us to give a global perspecti- And, third, but not least, we carry out corpora- ve to the challenges and te coherence actions. Since 2018, TGI moves discussions that we ad- with Vehicle Natural Gas (VNG). We carried dress locally, adopting 11 10 out the conversion of 20 vehicles from TGI

ASTRID ÁLVAREZ HERNÁNDEZ Chairman of the Board of Directors TGI S.A. ESP.

2018 Sustainable Management Report At the environmental level, we generated a specific compensation plan, which included the acquisition We are a company where sustainable of carbon credits corresponding to 12 thousand tons and the evaluation of compensation options, such development is part of its DNA: we as support for sustainable land use alternatives with transport a competitive energy, ally of the communities in the areas of influence of the company and the habitat banks, among other ecosystem the air and the quality of life. services projects.

As we achieve great results, in 2018 we also faced important challenges and we managed to overco- me them. Particularly in two events: in January, in Ballena, Guajira; and, in June, in Páez, Boyacá. The experience, skills and availability of the company’s team were tested and, in both cases, we timely addressed the contingencies, and we rapidly repaired and recovered the service, with zero incidents, and with the corresponding mitigation of the impact on the service provision.

We are a company where sustainable development is part of its DNA: we transport a competitive energy, we are ally of the air and the quality of life, and we do so following the principles of the Global Compact and assuming our contribution to the achievement of the Sustainable Development Goals (SDG).

We are proud to contribute to the economic growth of the country, the welfare of its inhabitants and contribute to make the world a cleaner and more competitive place. We are pleased to put at your disposal this Sustainable Management Report, where not only the results are set out, but also the experiences and learning achieved in 2018.

CATALOG “Banned species, 13 12 protection for progress”

JAIME ORJUELA VÉLEZ President (acting) TGI S.A. ESP.

2018 Sustainable Management Report About this report

Eighth Sustainable Management Report presented by TGI GRI 102-56

For TGI, it is important to perform the external verification of the figures and the content of this document and that is why the Top Management of the GRI 102-50 Company has designated the Internal Audit Management to manage this process.

This document includes the main data of the activities developed by the The external verification was carried out by the firm KPMG Advisory, Tax & Transportadora de Gas Internacional S.A. ESP (TGI) throughout 2018, in the Legal SAS. The External Verification Report is included in the annex. period between January 1 and December 31, in addition to analyzing the impacts and contributions of the operation in economic, social and environ- GRI 102-53 mental matters.

The point of contact for questions and / or related concerns is Carolina Bo- GRI 102-51, 102-52 nilla Portilla, who can be contacted via email at [email protected]

TGI presents this reporting exercise for the eighth consecutive year, thus giving continuity to the last report published in March 2018, which analyzed the performance corresponding to the year 2017.

GRI 102-45, 102-32

The report gives an account of the financial figures of TGI S.A. ESP and has been reviewed and approved by the president of the company, the Presi- dential Committee and the Corporate Governance Committee of the Board of Directors. It also sets out the actions and initiatives implemented as a contribution to the Sustainable Development Goals (SDG), where TGI can generate the greatest impact and which also respond to the corporate commitment to the Ten Principles of the United Nations Global Compact.

GRI 102-54

The contents have been selected and included in accordance with the GRI, Global Reporting Initiative standards, in their essential option, which can be identified by the numbered labels throughout the report. 17 16

Administrative Area Collaborator Bogotá, D.C.

2018 Sustainable Management Report Organization Profile

More than 25 years of experience behind us

3.1 Profile of 19 18 Grupo Energía Bogotá...... 20 3.2 Transportadora de Gas Internacional...... 21

2018 Sustainable Management Report 3.1 Profile of Grupo Energía Bogotá 3.2 Transportadora de Gas Internacional More than 120 years of history GRI 102-1, 102-2, 102-3, 102-4

The Grupo Energía Bogotá has come a long way to position itself as one of the main con- TGI creates and provides solutions for intermediate activities of the glomerates of the energy sector in Colombia, Peru, Brazil and Guatemala. --midstream-- hydrocarbon industry to large users, producers and energy market developers, connecting sources with consumption It has presence throughout the energy chain of electricity transmission, generation and centers, through long-term relationships and capital-intensive busi- distribution, and natural gas transportation and distribution through its own companies and nesses. participation in large companies of the two sectors. This is how it safely and reliably operates and maintains an exten- In Colombia, it is number one in natural gas transportation with our company Transportado- sive network of 3,994 kilometers of gas pipelines in Colombia with ra de Gas Internacional S.A. ESP (TGI) and number two, in transmission of electrical power. 193,911 hp compression capacity, and more than 291 km of gas pipelines in Peru, in partnership with GEB, bringing natural gas to the # 1 In Peru, it is number one in the distribution of natural gas with the companies Gas Natural different sectors of the economy. in transportation of natural gas with our company de Lima and Callo S.A. - Cálidda y Contugas SAC and is a leader in electricity transmission. Transportadora de Gas TGI is a --public and private-- mixed organization, belonging to the In Brazil, with the company Gebbras, it has 1,100 km of transmission lines that carry power Internacional (TGI) public services sector, with headquarters in Bogotá. to the city of Sao Paulo.

And in Guatemala it is number one in transmission of electric power with the companies Transportadora de Energía de Centroamérica S.A. (Trecsa) and EEB Ingeniería y Servicios Figure 2. Map of operations of TGI, geographic coverage of gas pipeline network S.A. (Eebis). GRI 102-6 Figure 1. GEB Presence We bring wellbeing and More than * 99,2% progress to nearly 65% gas of the elecrtric 25 transportation power distribution of the Colombians using years of asset availabilit * experience market natural gas Guajira of the electric power transmission market We operate * of the natural gas transportation and maintain market of the elecrtric power generation 3.994 99,6% market We bring natural gas km of gas maintenance pipelines plan execution Trecsa * through GrupoEnergíaBogotá of the electric power market of the natural gas distribution 15 market Departments in Colombia Bucaramanga

We connect 8 Medellín Km thermal plants with Ballena - Barranca 771 Centro Oriente 1.092 razil Mariquita - Cali 797 Bogotá Cupiagua MW1.299 de potencia La Sabana 150 21 20 Boyacá - Santander 305 efectiva Armenia Gebbras Cusiana - La Belleza 406 of the electric GrupoEnergíaBogotá of the electric power market power Morichal - Yopal 13 transmission We have a Cali Cusiana - Apiay - Usme 409 market committed human Neiva Sur de Bolívar 51 team of Total 3994 GrupoEnergíaBogotá 424 of the natural TGI supporters Source: GEB S.A. ESP. gas market

*By pipe section length (km). By gas volume 1 In english: horse power. In spanish: caballos de fuerza. transported, TGI’s market share is 56%

2018 Sustainable Management Report Source: GEB S.A. ESP. 3.2.2 Value proposals 3.2.1 Gas pipeline network and transport capacity TGI provides its service through its defined value proposal for each of the business units with which it develops its competitive strategy: GRI 102-4; 102-7 77° W 76° W 75° W 74° W 73° W 72° W

Ballena » Major cities: destined to contribute to the construc- » Industry: aimed at promoting more competitive Manaure N tion of cleaner, more comfortable and more competi- and environmentally friendly industries hand in hand Maicao

tive urban centers for its inhabitants. To achieve this, with distributors. For this, it knows about industrial RIOHACHA LA GUAJIRA A Albania TGI works hand in hand with the distributors, develo- processes and technologies, which are intensive in Hato Nuevo 11° N 11° N Infraestructura Barrancas ping initiatives to promote gas consumption on two terms of the use of gas-operated energy and advises Fonseca Distracción main fronts: its customers by suggesting changes that represent Estaciones de compresión San Juan Del Cesar ATLANTICO El Molino A ECG Hato Nuevo more efficient operations and with lower emissions 5 unidades de compresión: 13.775 HP Villanueva Distritos B Urumita B ECG La Jagua del Pilar La Jagua Del Pilar of CO2 and particulate matter. 4 unidades de compresión: 14.200 HP I Centro Operacional - Barrancabermeja HOUSEHOLD AND VEHICLE VI ECG Casacará C 7 unidades de compresión: 11.760 HP La Paz MAGDALENA VALLEDUPAR II Centro Operacional - Gualanday TRADE TRANSPORT San Diego ECG Curumaní » Midstream: develops projects in a comprehensive D 4 unidades de compresión: 14.200 HP III Centro Operacional - Sabana 10° N 10° N ECG Norean Agustín Codazzi and flexible way so that the production of natural gas E 5 unidades de compresión: 15.545 HP C IV Centro Operacional - Villavicencio Casacará ECG San Alberto » Generation: responsible for supplying gas as a is viable and connects to the market, offering natural F CESAR V Centro Operacional - Paipa 4 unidades de compresión: 14.200 HP Becerril ECG Barrancabermeja source of generation for assets that are part of the VI Centro Operacional - Valledupar gas solutions as an efficient energy for the refining G 7 unidades de compresión: 10.560 HP La Jagua De Ibirico

ECG Vasconia Chiriguaná VII Centro Operacional - Manizales back-up to the electric system. It is a unit that thinks and production of hydrocarbons. H 5 unidades de compresión: 14.470 HP

ECG Puente Guillermo D VIII Centro Operacional - Buga about a highly seasonal business, which generates I 8 unidades de compresión: 23890 HP Curumaní El Banco mainly at times of drought. This leads to a highly » Shared Energy Infrastructure: effectively ope- J ECG Miraﬂores SUCRE Chimichagua 9° N 6 unidades de compresión: 22.055 HP 9° N Pailitas rates the current infrastructure, while executing ECG Padua flexible and creative unit as to the way it designs pro- K 5 unidades de compresión: 8.400 HP Tamalameque Pelaya the CAPEX of the 4 businesses. Simultaneously, ECG Apiay BOLÍVAR ducts and contracts, taking advantage of a profound L 3 unidades de compresión: 1.237 HP regulatory knowledge of the business. it is responsible for the geoexpansion and inter- ECG Mariquita La Gloria M 2 unidades de compresión: 1.600 HP E CÓRDOBA Noreán connection of Colombia with other gas markets. ECG La Sabana Gamarra N 2 unidades de compresión: 21.456 HP Aguachica ECG Paratebueno O 3 unidades de compresión: 5.040 HP Río De Oro NORTE DE In 2018 TGI served the following sectors: ECG Villavicencio SANTANDER 8° N P 2 unidades de compresión: 2.760 HP 8° N San Martín F GRI 102-6 San Alberto La Esperanza 2 Rionegro Table 1. Sectors served by TGI in 2018 Sabana De Torres San Pablo

Puerto Wilches Cantagallo G I Market Barrancabermeja 7° N T 7° N Recipient Yondó (Casabe) 784 MPCD Regulated Non-regulated Simacota San Vicente De Chucurí ANTIOQUIA Puerto Parra of capacity SANTANDER ARAUCA Traders Traders - Cimitarra

Distributors Distributors Homes, shops, industry Vélez H Chipatá Santana Vasconia Belén San José Chitaraque 6° N Puerto Boyacá De Pare Barbosa 6° N Cerinza Guavatá Togüí Jesús Moniquirá Santa Rosa De Viterbo La Belleza María I Floresta Industrial Industrial Substitution of coal, cogeneration, cofiring Puente Duitama CHOCÓ Florián Guillermo Arcabuco Nobsa Otanche Albania Santa Sotaquirá Tununguá Sofía PaipaTibasosa Saboyá Villa De Leyva Pauna Cómbita Tuta Sogamoso Briceño Chiquinquirá Sutamarchán Sora Oicatá Puerto Salgar CALDAS Tinjacá NA Thermal Power generation Sáchica Motavita V Simijaca TUNJA Susa Ráquira Samacá Cucaita La Dorada Fúquene Guaduas BOYACÁ Ventaquemada Victoria Jenesano Ramiriquí Morichal Ubaté Lenguazaque CASANARE NA VNG Mobility Marulanda M Mariquita CALDAS Sutatausa Zetaquira J Manzanares Cucunubá Cusiana YOPAL Neira K Tausa Aguazul Honda III Miraﬂores MANIZALES Padua Fresno Cogua Nemocón Herveo Falan CUNDINAMARCA Páez Palestina Zipaquirá Marsella 5° N La Celia Villamaría VII Armero (Guayabal) N Gachancipá 5° N Chinchiná Tocancipá Tauramena Lérida Tabio Balboa Dosquebradas Sopó Tenjo Cajicá Líbano Ambalema Chía Monterrey Source: TGI S.A. ESP. Santa Rosa De Cabal Facatativá Pereira Madrid Ansermanuevo Zipacón Cota RISARALDA Venadillo Funza Sabanalarga Cartago Bojacá Filandia Mosquera Quimbaya Obando Salento Circasia Alvarado Soacha Barranca De Upía Villanueva La Unión Montenegro ARMENIA La Chipaque Calarcá Victoria Piedras Cáqueza O 23 Our current service portfolio is comprised of: Other non-regulated services. Roldanillo La Tebaida Zarzal QUINDIO 22 II BOGOTÁ D.C. Une Quetame Paratebueno Caicedonia IBAGUÉ Fosca TGI is the largest Gualanday Sevilla Coello Restrepo Cumaral » Parking and / or gas loan. Guayabetal Bugalagrande Espinal GRI 102-7 Andalucía P natural gas San Luis Guamo » Marketing of balance accounts. Tuluá VILLAVICENCIO L TOLIMA Apiay 4° N VIII San Pedro Acacías 4° N Buenaventura VICHADA Buga Saldaña » Crossing of balance accounts. VALLE DEL CAUCA Puriﬁcación Guamal IV transporter in Regulated Gas Transportation Services. Cubarral Guacarí Coyaima » Interruptible transportation. Dagua Ginebra Colombia El Cerrito

Natagaima » Rolling parking. Palmira San Martín Yumbo META Granada » Parking in industrial sector on weekends. Candelaria Pradera CALI

Aipe » Dehydration. 1:3.800.000 HUILA » Gas outside of RUT specifications. 3° N Km 3° N 2 The types of clients are broken down in annex 1, included at the CAUCA NEIVA 0 30 60 120 180 240 CAQUETÁ GUAVIARE end of the document. 77° W 76° W 75° W 74° W 73° W 72° W Source: TGI S.A. ESP.

2018 Sustainable Management Report 3.2.3 Business opportunities to expand the system

TGI will continue developing the projects of interest defined by UPME and will work to ensure the definition and incorporation of other expansion projects in the New Long-term Supply Plan.

Figure 4. Projects in the Colombian natural gas infrastructure of interest to TGI. Transitory Plan of Supply, Res. MME 40006 January 2017

Entry Date

Bidirectional Yumbo - Mariquita *09/ 2023 Natural gas fields

Third party gas pipelines IPAT Mariquita-Gualanday Loop 01/ 2020 City Gate TGI Bidirectional Barranca-Ballena 01/ 2020

Refineries Ramal-Jamundi Compressor 01/ 2020 Compression Stations Field collaborator Entry Date Mariquita, Tolima Pacific Regassification *09/ 2023 Selection Plant Buenaventura-Yumbo Gas Process *09/ 2023 Pipeine 3.2.4 Sector context

CREG will define who executes and how it is paid Change in the World Energy Matrix International climate change mitigation policies have coal. Furthermore, some scenarios show that coal would have a generated a variation in the global energy matrix ba- decrease in energy demand with respect to 2016. However, in New gas pipeline or loop sed on efforts to limit greenhouse gas (GHG) emis- the case of crude oil, growth is marginal in each of the long-term New or bidirectional compression sions and achieve a market approach that transitions scenarios. These changes in the energy matrix require large investments given the emergence of new business opportunities, LNG Regassification to a low carbon economy. This affects the distribution of the matrix in the different scenarios, projec- which must be leveraged by state policies that encourage the ting significant growth in the penetration of renewa- use of clean energy sources. 3 To be defined in new reslution ble energies and gas, the latter with lower emissions compared to other hydrocarbons and fuels such as 25 24 Source: TGI S.A. ESP. Considering the above, the development of markets and the assurance of sources of natural gas supply is promoted, in the transition between conventional energies such as coal, diesel and gas to renewable energies. At the international level, TGI will continue to seek and analyze opportunities for growth and globalization in synergy with Grupo Energía Bogotá.

2Source: UPME, Energy price projection for electric generation, 2018-2040.

2018 Sustainable Management Report Figure 5. Natural gas reserves The projections and assumptions of the UPME high scenario include natural gas con- Analysis of the sumption variables in cities, the value added of the manufacturing industry, the price GPC 457,066623 index and the demand for electricity, the response of several segments of the energy Natural Gas sector 6000 system to changes in the prices and levels of demand in the transport sector, available Possible technologies, among others. Natural gas is promoting processes of accelerated energy 5000 substitution throughout the world, because it is a resource To ensure this scenario, starting in 2021, the main results of the competitive strategy having those hydrocarbons characteristics, such as sto- currently implemented by TGI in the development of demand and the assurance of 4000 853,095816 rage, transport and adaptability for various uses through Probable sources in the management carried out by its business units must be obtained. different applications and processes, but also produces 3000 minor emissions to the atmosphere, has competitive re- ductions and high reserves in the world, making it the ideal 2000 3896,02575 substitute for many of the current energy sources. Proven 1000 Regarding the availability of natural gas in Colombia against Supply-demand balance of natural gas the estimated demand, there is a need to establish alterna- 0 tives to increase the natural gas supply and strengthen the Figure 7. Natural gas supply vs. demand balance supply, allowing to solve the supply uncertainties related Reserves at 31 December 2017 to this activity in the medium and long term, should no new Source: UPME, Energy price projection for reserves of natural gas be incorporated, in order to ensure 1.600 supply security and the reliability of the natural gas service. electric generation, 2018-2040. 1.400 1.200 1.000 800

GBTUD 600 Natural gas demand 400 200 Figure 6. Natural gas demand projection by sector 0 1.400 jul. - 25 mar.-27 jul. - 20 jun. - 18 ago.-27 abr. - 19 abr. 1.200 oct. - 21 nov. - 18 nov. jun. - 23 dic. - 25 abr. - 24 abr. dic. - 20 sep. - 19 sep. oct. - 26 ene. - 18 ene. feb. - 25 feb. feb. - 20 feb. nov. - 23 nov. may. - 21 may. sep. - 24 sep. mar. - 22 mar. ene. - 23 ene. ago. - 22 ago. may. - 26 may. 1.000 Residential Tertiary 800 Industrial Petrochemical + Compressors GNVC Oil bearing

GBTUD 600 Thermoelectric High Esc 400 source: MME, UPME, CONCETRA. 200 From the “Analysis of supply and reliability of the natural gas sector”, it is possible to 0 conclude the generation of a supply imbalance since 2022, where it may be required to import natural gas to provide security in the supply and reliability on the energy system in the country. 27 26 jul. - 25 mar.-27 jul. - 20 jun. - 18 ago.-27 abr. - 19 abr. oct. - 21 nov. - 18 nov. jun. - 23 dic. - 25 abr. - 24 abr. dic. - 20 sep. - 19 sep. oct. - 26 ene. - 18 ene. feb. - 25 feb. feb. - 20 feb. nov. - 23 nov. may. - 21 may. Regarding the supply needs for gas transportation service provision, as of the year sep. - 24 sep. mar. - 22 mar. ene. - 23 ene. ago. - 22 ago. may. - 26 may. 2023-2024, the system must be supplied from the Atlantic coast and / or the Pacific Regasification Plant4. Residential Tertiary Industrial Petrochemical + Compressors GNVC Oil bearing Thermoelectric High Esc Source: UPME. Low Esc 4 Source: Production Declaration, Ministry of Mines and Energy 2018. Growth percentage of volume transported of 1.66% UPME. TGI information on contracts and volumes transported.

2018 Sustainable Management Report Figure 9. Transportation of liquefied natural gas

Source: Gas Strategies. Figure 8. TGI supply analysis 69.1% Indigenous

MPCD 10.7% LNG 600 20.2% International 400 pipeline Trade

New sources 200 USA 735 Russia 636 Other Asia 345 0 Iran 224 Europa del Este 181 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Other Europe & Eurasia 179 Canadá 176 Global gas production Qatar 176 is dominated by the Current Ballena Cusiana Porvenir Cusiana AP China 149 United States and Other Middle East 149 Russia. Iran, Canada Other Africa 134 Source: UPME, Energy price projection for electric generation, 2018-2040. production. and Qatar are also Norway 123 important producers UE 118 and have the largest Australia 114 gas reserves in the Figure 10. Global natural gas Figure natural 10. Global Saudi Arabia In the national context, Colombia currently has 111 world. Alageria 91 a regasification plant located on the Atlantic Other North America 41 coast. Likewise, among the projects adopted by the Ministry of Mines and Energy and identi- It is clear that an additional supply via li- Bcm 0 100 200 300 400 500 600 700 fied in the Gas Natural Provision Transition Plan, quefied natural gas (LNG) gives high cer- the commissioning of a new regasification plant tainty of supply, and requires the presen- Source: UPME, Energy price projection for electric generation, 2018-2040. located in the Colombian Pacific is considered. ce of interested agents willing to agree on agreements to ensure the financing of the regasification infrastructure from the demand side. However, the growing USA 740 EU467 demand for less polluting, more econo- Russia 425 mic and reliable sources of energy is Other Asia 412 The global demand for ...the growing demand for less making LNG a source of great relevan- gas is also dominated China 240 ce for the future of many countries, as a by the US (An increase polluting, more economic and Other Europe & Eurasia 220 guarantee of supply and as evidence of Iran 214 of 18% in the last 10 reliable sources of energy is less polluting operations against traditio- Other Middle Ease211 years). The Chinese nal fossil fuels5. making LNG a source of great Other North America 203 market has tripled natural gas natural South & Central America 179 since 2007, while relevance for the future of many Russian demand has 28 África 142 29 countries Japan 117 dropped by 1%.

Figure 11. World demand for demand for Figure 11. World Saudi Arabia 111

Bcm 0 100 200 300 400 500 600 700

Source: UPME, Energy price projection for electric generation, 2018-2040.

5Source: UPME, Energy price projection for electric generation, 2018-2040. 6Source: Gas Strategies

2018 Sustainable Management Report Markets with growth opportunities Figure 13. Mobility in Colombia by type of fuel 250,000

200,000 The added value of the industrial sector represents more than 30% of the gross domestic product and its value chain includes other sectors such as services, transport, primary feedstock and the supply of electricity and water. For this reason, several studies have addressed industrial productivity and its participation in na- 150,000 tional production. However, the studies focused on the energy consumption of the industry are scarce, and per day Barrels have been carried out with two different approaches: first, there are macro-focused investigations, carried out primarily by the government, aimed at planning the supply of fuel at the national level. Secondly, research 100,000 has been carried out with a micro focus, which analyzes the energy consumption of a sector or a particular company, and seeks alternatives to increase energy efficiency.6 50,000

Figure 12. Evolution of the fuels used in industrial production in Colombia Mobility Industrial 0 2011 2017 2013 2014 2012 2015 2016 2010 2007 2003 2004 2008 2005 2006 2009

Fossil diesel Biodiesel Basic gsoline Carburetant alcohol VNG, basic gasoline equivalent 100 Other 80 Source: UPME, Energy price projection for electric generation, 2018-2040. Oil 60 Natural Gas 40 Currently, the automotive sector in Colombia uses oxygenated gasoline (mixtures of

GBTU/Año Coal basic gasoline and fuel alcohol), diesel-biodiesel and vehicular natural gas (VNG); the latter is a self-propelled fuel in Colombia for more than 20 years, along with ethanol 20 Bagasse since 2005 and biodiesel since 2008.

0 The rate of penetration of the new technology with VNG depends on the technical 1976 1986 2006 2016 2017 change, but also on the replacement of the current fleet. If the environmental and fis- cal standards internalize the costs assumed by society for air pollution, the process of migration to clean energy will be very dynamic.

Source, UPME, 2017. TGI calculations. NATURGAS and other entities suggest increasing the consumption of VNG to massive public transport, where the price difference gains special relevance and where there is a clear interest of some local administrations to reduce the pollution index in their cities.

by 2030 an Natural gas can gain its share in the matrix, replacing coal (environmental benefits), increase of bagasse (sugar mills) and electricity (cogeneration). The UPME projects 3 scenarios of industrial gas demand growth, by 2030 an increase of 25% is expected. 25% 31 30 is expexted

7Fuente: Concentra, Consumo industrial de gas natural en Colombia.

2018 Sustainable Management Report Creation of shared value an sustainability

The aspects that are most relevant for each stakeholder are presented in this sustainable management report.

Strategic engagement with our stakeholders ...... 34 Materiality ...... 36 4.1 Strategic engagement with our stakeholders Table 3 Engagement mechanisms, frequency of contact and relevant issues for the TGI S.A. ESP Content of the Stakeholder group Engagement channel Frequency Key issues related management GRI 102-40; 102-42; 102-43; 102-44 report Information on the In 2018, we strengthened the spaces and channels management of the Sustainable management company, behavior of the Chapter, Economic value of relationship with our stakeholders, in order to ex- Annual report action, achievements and generated pand and improve the management of the impacts challenges in financial of our activities, giving continuity to the joint creation matters. of value and optimizing the response we give to the Corporate governance Management of the expectations of the different actors with whom we report. Shareholders and company and compliance interact, all under the framework of sustainable and Corporate governance report Annual investors with the regulatory Corporate governance responsible management. framework. chapter

Table 2. TGI S.A. ESP Stakeholders Quarterly results report Quarterly Financial, commercial and Sustainable management operative issues. report Results Conference Quarterly Grupos de interés TGI S.A. ESP Management of the Corporate governance company, financial, Environmental Board of Directors Results and annual reports Permanent chapter and sustainable Supporters Contractors Communities Clients commercial and authorities management report Board of operational issues. Directors Shareholders Investors Financial entities Suppliers Control entities Chapter, Economic value Requirement response Permanent Financial issues generated

Source: TGI S.A. ESP. Financial entities Quarterly results report Quarterly Financial, commercial and Sustainable management operative issues. report In 2017 we reviewed our group map and identified Results Conference Quarterly those that are listed in Table 3 as the key actors of our activities, with the purpose of strategically design Forum TGI 2018 Gas for Prospects for the supply Chapter Growth and Clients Annual spaces and contents that allow us to maintain a cons- Progress and use of gas market development tant communication, characterized by transparency Operational issues, and clarity, whereby relations of mutual benefit, ge- labor relations, health Collaborators and Internal communication Sustainable management nerate synergies and provide a timely and adequate Permanent and safety, ethical contractors channels report response to the impacts generated by our activities. management and corporate governance As a result of this engagement approach and the Operational issues, Authorities and control Reports and response to Sustainable management contacts we constantly maintain with the represen- Permanent environmental, social and bodies requirements report tatives of the different stakeholders, we gather the regulatory management concerns, issues and aspects that are most relevant Gatherings, meetings Operational issues, Territory transformation to each group, which are presented in this sustaina- Communities Informative, bulletins, web Permanent environmental, social and chapter ble management report, both through the material page regulatory management 35 34 issues and in the other contents that are analyzed Operational issues, Chapter Development Meetings, visits, bulletins, and developed in this document. Suppliers Permanent environmental of contractors and web page management suppliers

Source: TGI S.A. ESP.

2018 Sustainable Management Report 36 2018 Sustainable Management Report

4.2 Materialidad “Social legacy”, isnowcalledTransformation ofterritories. company’s socialrelations;asaresultofthesefactors,thematerialissueknown mation ofTerritories chapter, whichalsodescribesthestrategicfocusthatguides the frameworkofsharedvalueregeneration,aprocessdescribedinTransfor- Development strategythatseekstogivenewmeaningtheactionsofTGI under During 2018andinlinewiththeGEB,weworked onthedesignofSustainable report. results ofthisanalysisprocesswillbepublishedinthenextsustainablemanagement committee, theboardofdirectorsandsustainabledevelopmentcommittee. The clients, whichwillalsoincludevalidationwithinternalbodiessuchasthepresidency the participationofexternalaudiencesassuppliers,communityrepresentativesand riality, whicharebeinganalyzedbythestakeholders, inaprocessthathasconvened management and the activities deployed in each of the topics that make up our mate- In thissustainablemanagementreportwegivecontinuitytothemonitoringof During 2018 andinlinewith value regeneration the framework of theshared to theactionsofTGI under seeks to give newmeaning Development strategy that design oftheSustainable the GEB,we worked onthe ENERGÍA PARA LA PAZ GRI 102-46;102-47GRI Planadas, Tolima Source: TGI S.A. ESP Team withtalent, motivationandresults-driven Development ofsuppliers andcontractors Operations withintegrity, reliability and Growth andmarket development Environmental responsibility Economic valuegenerated Territory transformation Corporate governance Material Subjects efficiency Table 4.Materiality Selection, monitoring andcomprehensive evaluation of Action for climate change /emissionsmanagement Regulatory management (regulatory framework) Extension ofgood sustainabilitypractices Priority insafety andoccupational health Promotion andrespect ofhumanrights Compliance withlegal requirements Comprehensive assetmanagement Ethics, transparency andintegrity Development ofnewmarkets Human talent development Indirect economic impacts Human talent wellbeing Creation ofsocialvalue Presence inthemarket Economic performance Operational efficiency Ecosystem protection Risk management Norm compliance Growth projects Local suppliers Quality service Descriptores Human rights suppliers Residues Noise 37 Corporate Governance

95% of the company’s activities were evaluated on risks associated with corruption

Governance structure ..... 42 Anti-corruption management ...... 45 Risk management...... 49 40 2018 Sustainable ManagementReport

5.1 Why is it relevant? bility overtimeofTGI. continuous growthandthesustaina- with theapplicableregulation, way, weseektoensurecompliance formed andtransparentprocess.This that decision-making becomes an in- nisms; toolsthatprovidekey inputsso trol architectureandfollow-upmecha- These principlesalsodirectourcon- relationships. stakeholders andprojectlong-term ments establishedwiththecorporate allows ustorespondthecommit- te valuesofGrupoEnergíaBogotá, ethics that,alignedwiththecorpora- tions inaframeworkofintegrityand ty andexcellence, wedevelopopera- racterized bytheircontinuity, reliabili- providing midstreamsolutionscha- To fulfilltheobjectiveofcreatingand GRI 103-1 Projects Initiatives and 5.2.1 2018 corresponding trainingforthe useoftheplatform. addressing thesubjects.All users receivedthe tings and allowa greater scope and depth when factors thatfacilitatethedevelopmentofmee- as thequalityandconfidentialityofinformation, efficient way, ensuringuserinteraction,aswell cess documentsanddatainamoredynamic Bogotá. This mechanism allows members to ac- its Committees,inlinewiththeGrupoEnergía ging theinformationofBoardDirectorsand » Corporate Affairs Division. Corporate Affairs Division. Legal and Compliance Vice Presidency and the work teams of TGI, under the leadership of the ge andacontinuoustransformationwithinthe cation ofthismodelhasinvolvedaculturalchan- comply withthebusinessobjectives.Theappli- king andmattersofgreaterrelevanceinorder procedures thatguidestrategicdecision-ma- within thecompany, throughspecificrulesand of the instrumentsadopted in previous years nance modelismaterializedintheappropriation The implementationoftheCorporateGover- decision-making process. tion for our shareholders and the integrity of our transparency andequityinaccesstoinforma- in CorporateGovernance, inordertoensure Bank of Latin America (CAF), as good practices and Development(OECD)the of theOrganizationforEconomicCooperation cial SuperintendenceofColombia,theprinciples At TGI, weobservetheguidelinesofFinan- managed? managed? 5.2 How isit

Incorporation ofatechnologicaltoolformana- GRI 103-2 Bogotá, D.C. BOARD OFDIRECTORS, TGI S.A.ESP. ness in the decision-making process. ness inthedecision-makingprocess. a higherlevelofargumentationandcomplete- sessions, hasprovideddepthtothedebatesand thanks tothefrequencyandintensityofwork through asupportandadvicedynamicthat, have createdvaluefortheBoardofDirectors » exceeding 95%oftheregulationsadopted. reports presentedbytheGEBshowcompliance Grupo EnergíaBogotá.Thequarterlymonitoring regulations adoptedbyTGI asasubsidiaryof » Shareholders’ Assembly. and its Committees, as well as in the General for makingdecisionsintheBoardofDirectors » ce withthelinesofGrupoEnergíaBogotá. » related parties. flicts ofinterestandthepolicyoperationswith » ces. just itscomponentswiththebestrelatedpracti- »

Formalization of the processes and procedures Formalization oftheprocessesandprocedures Reform ofthecompany’s bylawsinordertoad- The standardizationofthewebsiteinaccordan- Approval ofthepolicyadministrationcon- The specific committees, as advisory bodies, The specificcommittees,asadvisorybodies, Compliance with the Corporate Governance Compliance with the Corporate Governance

Challenges 5.2.2 2019 approved throughout 2018. approved throughout2018. subsidiary, andinaccordancewiththepolicies the democratizationprocessofGEBforTGI asa ce instrumentsofTGI, evaluatingtheimpactof » corporate governanceprocess. on the concept of quality of information in the additional variablesinthereport,withemphasis nance standards,TGI asasubsidiary, willinclude » induction andreinductionofcollaborators. porate parameters,withemphasisonthespacesof cilitates the disclosure and socialization of the cor- ned todevelopacommunicationsstrategythatfa- and proceduresofcorporategovernance, itisplan- cision-making culturealignedwiththeprocesses »

With the aim of promoting the adoption of the de- Review andupdateoftheCorporateGovernan- Faced withcomplianceCorporateGover- 41 Table 5. TGI Board of Directors Composition 5.3 How does TGI assess its commitment Board of Board mem- Directors’ Issues Board mem- Board mem- Board mem- Board mem- Board mem- Board mem- vis-à-vis this issue? ber number Principal ber number 2 ber number 3 ber number 4 ber number 5 ber number 6 ber number 7 1 GRI 103-3 Members

As part of TGI’s Integrated Management System, the ac- » Internal Audits and Grupo Energía Bogotá audits. José Fernan- Astrid Álvarez Moisés Rubin- Álvaro Villas- Héctor José Diana Margari- Daniel Rodrí- tions regarding Corporate Governance are analyzed and Name do Montoya » Internal control system. Hernández stain Lerner ante Losada Fajardo Olarte ta Vivas Munar guez Ríos assessed in detail, a follow-up that is complemented by Carrillo mechanisms such as: » Quarterly and annual evaluation of Grupo Energía Board Chairman Yes No No No No No No Bogotá to assess compliance with the corporate Independent governance regulations adopted by TGI. No Yes No Yes No Yes Yes (yes/no) » Self-evaluation of the Board of Directors. Which shareholder do GEB N/A GEB N/A GEB N/A N/A you represent? Desarrollo GRI 102-18, 102-22, 102-23 Company where Base Property Doblefer S.A. y GEB Empresarial GEB Ecopetrol GEB Group Serifer S.A. you work Ltda. General Shareholders’ Assembly Board of Directors. Vice President, Legal and Re- Legal Repre- a) comprised of: b) President CEO Low Emission Advisor gulatory Vice Partner Job Title sentative Generation President The Board of Directors of TGI is composed Years as a Board of seven members, two women and five 2 years 2 years 10 months 1 year 10 months 1 year 2 years Member Grupo Energía Minority men, three of whom are employees of Grupo Corporate Audit Commit- Bogotá S.A. ESP shareholders Energía Bogotá, the main shareholder with Audit and Risk Operative Financial and Audit Financial and Governance tee Corpo- (formerly Empresa a 99% share. Committee(s) Committee Committee Investments Committee Investments Committee rate Governan- de Energía de Financial and Compensa- Committee Corporate Committee to which you Compensa- ce Committee Bogotá S.A. ESP). Investments tions Commi- Operative Governance Operative belong tions Commi- Compensations Committee ttee Committee Committee Committee ttee Committee ADMINISTRATIVE AREA COLLABORATOR Bogotá D.C. Number of 5.3.1 Governance Governance 5.3.1 structure companies where you participate as 5 3 4 1 3 4 0 a member of the Board of Directors Name of the Emgesa, TGI, Pe- Codensa, TGI, companies TGI, GOT MGE Codensa, TGI, tecor SAS TGI, Calidda, Grupo Inmobi- (Brasil). Em- TGI Not applicable. where you Calidda and Serrano Gómez Emgesa liario Valor and gesa, Calidda participate as a Trecsa Pretecor Ltda M001 SAS member of BoD Name of non-profit Asociación Corporación entities in which Amigos del Not applica- para la De- Not applicable. Not applicable. Not applicable. Not applicable. Parque 80 and you participate ble. mocracia Luis Fundación 43 42 as a member of Carlos Galán management Parque 80 bodies Percentage of meetings at- 9 of 13 (69%) 11 of 13 (85%) 10 of 13 (77%) 13 of 13 (100%) 7 of 13 (54%) 13 of 13 (100%) 13 of 13 (100%) tended vs. Board Meetings held

2018 Sustainable Management Report Aspectos Junta Directiva Miembro de Miembro de Miembro de Miembro de Miembro de Miembro de Miembro de Miembros Junta núm. 1 Junta núm. 2 Junta núm. 3 Junta núm. 4 Junta núm. 5 Junta núm. 6 Junta núm. 7 principales

Extensive experience in strategic Main concerns reported to advising to It has areas of national and expertise inclu- Experience in Extensive the Board international ding marketing, restructuring Experienced knowledge More than ten He has ex- companies. commercial processes and in market in financial years of expe- perience in Designed and and business business re-en- recovery, de- matters. He rience in deve- consulting and GRI 102-34 implemented development, gineering and velopment and has occupied lopment and legal advice in a new strate- operations and development management the Financial investment in the structuring gic sourcing pipeline and of real estate of distribution Management the renewable and design of Competencies model in gas pipeline management networks, In 2018, through evaluations and corporate monitoring mechanisms, the following as- of companies energy sector. public policies, and experience Ecopetrol management. focused on the comprehensi- pects associated with the sustainable management of the company were identified, such as Manu- He has served the normative related to eco- that achie- He stands out structuring and ve restructu- facturas Eliot as director and budgetary which were communicated to the Board, and analyzed and managed as described below. ved annual for his ability management ring of compa- nomic, envi- S.A. (Pat Primo of Business viability of savings of to provide of investments, nies, cultural ronmental and Group), Film- Development institutional over 150 mi- direction and and project transformation social impacts. tex S.A. and in compa- organization llion dollars. to be success- development. of companies. Carulla S.A. He nies: Acciona models, and in Table 6. Main concerns reported to the Board Specified the ful in complex Participated in 33 years of also worked as Energía in the implemen- transforma- situations the acquisition cumulative ex- an advisor in Mexico and tation of stra- tion of the experienced in and restruc- perience in the the Accounting Grupo ECOS in tegic supply Empresa de several functio- turing process hydrocarbons and Financial Panama. models. Acueducto de nal areas and of the Amper industry. area of Ficitec. Bogotá, achie- in multicultural Group of Spain. ving greater environments. business Number Nature Mechanisms used to address and solve the concern efficiency with high quality. Are you a When reviewing the gas produc- The administration, following the guidelines of the Corporate Governance of TGI, shareholder of tion figures published by the first presented the issue to the corresponding internal instances. Next, it was Not applica- 1 Ministry of Mines and Energy, presented to the Financial and Investment Committee of the Board of Directors Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. a major supplier ble. there is evidence of a decline in and finally to the Board of Directors. The TGI strategy was reviewed taking into or customer? the main sources of natural gas. account the critical concern presented. Which one? Civil Enginee- ring Studies Source: TGI S.A. ESP. from the Pontificia Chemical Universidad Engineer from Javeriana, the Universi- GRI 102-16/ ODS 16 with a Mas- Bachelor dad Nacional ter's degree in in Business de Colombia, Industrial Eco- Lawyer from International Administration with studies at nomist from the Colegio The corporate values that are part of the DNA of TGI and that direct the actions and decisions of Relations and Manage- International the Universi- Mayor de all the members of the company are: from the ment from the Bachelor of Institutions in: dad de los An- Nuestra Seño- Universi- University of Science in finance, opera- des in Bogotá, ra del Rosario, Architect from ty of Ohio; Salamanca, Chemical En- tions, leader- Colombia and specialist in the Universidad Studies specialization with a Master's gineering from ship, strategic Master in Busi- Public Mana- de los Andes. in Integrated in Strategic the University planning, mar- ness Adminis- gement from Environmental Management of Tulsa. keting, crisis Respect: tration from the Univer- Integrity: Management of Human management, the University sidad de los Transparency: Equity: and spe- Resources and corporate of New York. Andes. cialization International restructuring, 45 44 in Strategic Trade. corporate go- we interact Procurement vernance, cor- recognizing collective and Supplier porate social we proceed with justice, Management responsibility. interests, individual we carry out our we act with equality and impartiality, at the Univer- Ethical and diversity, sustainability management in an firmness, rectitude, seeking a positive and sidad de los of natural resources objective, clear and honesty and inclusive social impact. Andes. and institutional verifiable manner. coherence. Declaration 5.4 action transparent approach. of conflicts of Yes Yes Yes Yes Yes Yes Yes interest

Source: TGI S.A. ESP.

2018 Sustainable Management Report Figure 14. Antifraud and Anti-corruption Program

or Asset Lau n Prevention m f nde ptio Po te ri ru lic ys ng or y S a In coherence with this behavioral horizon, we have c e n d iv d linked ourselves with the United Nations Global n s T a n e d e r Compact, an adhesion that implies observing its ten u r a h o r e r principles in all our action plans and initiatives in or- r F i p This document includes s der to contribute to the promotion and respect for d t n Applies to all GEB companies, m the policies, controls and F a o i

Human Rights; generate safe, inclusive, diverse work n l and it sets out the parameters of C

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forms of corruption.

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TGI, as part of the Grupo Energía Bogotá, has a Code e e

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of Ethics that includes the behavior and performance i I o

place within companies. n guidelines expected by the members of the compa- ) el nies that are part of the GEB in their relations and daily nn ha and commercial activities with the different company C ic h stakeholders. Additionally, TGI employees ratify their t E commitment to the code annually, and through the Administered by an form “Declaration of conflict of interest”, they express independent third party, in their concerns in this regard, which are analyzed and order to ensure objectivitty and raised to the Corporate Ethics Committee in case of transparency of the mechanism; requiring a more thorough analysis. this resource seeks to receive and administer enquiries, concerns and denouncements related to the company’s activity.

Source: TGI S.A. ESP.

The company has a Policy on Internal Control and Prevention of Fraud and Corruption that is published at: https://www.tgi.com.co/nosotros/gobierno-corporativo/politicas, as well as with the telephone line 01 800 518 2937 and the email: [email protected] In 2018 FIELD COLLABORATOR Mariquita, Tolima In case of any breach of the Code of Ethics, or the Policy of Internal Control and Prevention of Fraud and Corruption, sanctions will be applied according to the severity of the fault. These 95% are verbal reprimands, suspension of one up to 2 months, or if the case requires, termination of the company’s of the contract for just cause. activities were evaluated on risks In 2018, 95% of the company’s activities were evaluated in risks associated with corruption associated with through audits and Management System indicators for the prevention of the risks of fraud, corruption through 5.4.1. Anti-corruption management bribery and corruption, which operates in accordance with self-regulation guidelines and audits. compliance with international standards on the matter.

GRI 102-17, 205-1 47 46 Antifraud and It groups the instruments and activities whereby the situations To strengthen the management of ethics in the company, du- Anti-corruption and behaviors associated with fraud and corruption events are 2018 Initiatives ring 2018 the campaign “Brilla con luz propia” was carried out, prevented, detected and investigated. Figure 12 shows how the which included three phases: Program program is composed. and Projects » Presentation of videos with situations related to the Code of Ethics and publication of pieces of communication that reite- GRI 205-2 rated messages related to the integral and transparent management.

2018 Sustainable Management Report » Presentation of videos performed with dramatized In the framework of the campaign “Brilla con luz propia” we also Table 9. Employees trained in anticorruption procedures The commemoration of the International situations and everyday examples that allow to un- conducted training with 45 in-house contractors: and policies by department. Day Against Corruption on December 9 derstand the ethical concepts. was carried out through the internal corporate communication channels and re- » Face-to-face training entitled “How privileged are Table 7. In-house contractors trained by department iterated the integrity and transparency we?”, which sought to sensitize employees about Department No. of Participants messages. the benefits they have as employees and the current Santander 20 status of life, which is not worth putting at risk due Department No. Participants With our clients, suppliers and contrac- to irregular situations. These sessions were comple- Meta 12 tors, we carried out the “Give Yourself Santander 7 Peace” no gift campaign in which, throu- mented by messages related to the Code of Ethics. Tolima 19 Meta 7 gh an email and pieces of communica- Cundinamarca 150 tion, we remind you that administrators Tolima 8 Valle del Cauca 8 and collaborators cannot give or receive gifts and entertainment, unless it is about Cundinamarca 5 Caldas 5 promotional items destined to image po- Valle del Cauca 3 Boyaca 15 sitioning and brand recall, in accordance Caldas 5 with the provisions of our Code of Ethics. Cesar 25 On average, Boyaca 5 La Guajira 9 Cesar 5 Total 263 63% Total 45 of the employees were trained 5.5 Risk management

Table 8. Employees trained in anti-corruption policies and procedures by job category GRI 102-15

The integral risk management allows us to know gic objectives. Hence, in 2018, the following results the uncertainties of the environment to which the were achieved: TGI company is exposed during the execution of the Employees » Outstanding compliance of the corporate stra- Employees informed by strategy and the fulfillment of the corporate objec- informed and Total Employees trained tives, in the midst of a globalized environment that tegic objectives. email broadens the spectrum of growth opportunities and, trained employees » Promotion of risk management culture at all le- in turn, the range of risks that the operation faces. Number % Number % vels of the organization through workshops and This context implies managing the control of multiple field visits by socializing the corporate risk matrix. Top Management 14 5 36 % 9 64 % adverse situations that may arise, and which involve compliance with regulation in the short term, survival » Operational continuity of the business, with an Mid-Management and sustainability at present, and the exploitation of 39 17 44 % 22 56 % indicator of 99.25% availability of the gas trans- opportunities in the medium and long term. Advisor port system. To achieve these purposes, we have adopted at Process for identifying the company’s strategic 189 61 32 % 128 68 % » Professional TGI a risk management policy that establishes the risks, which will allow the establishment of pre- commitments and action framework for the integral vention plans and the promotion of a risk mana- 177 73 41 % 104 59 % Support management of strategic, operational, project and gement culture within the organization in 2019 insurance risks and the steps for the identification, 2 49 48 Total 419 156 37 % 263 63 % assessment, control and monitoring of the risks and impacts associated with compliance with our strate- Source: TGI S.A. ESP. During 2018, no strategic risk materialized. The control actions implemented to mitigate the risks were effective and solid and allowed to maintain the 2017 compliance standard.

8The payroll of TGI S.A. ESP employees includes 448 jobs. By September 2018, date of training, the company had 419 active employees and the remaining jobs were vacant

2018 Sustainable Management Report Table 10. Actions to mitigate strategic risks of TGI in 2018

Risk Matrix » Attendance at events organized by the CREG on regulatory changes. » Send observations, comments, proposals to the regulator. Regulatory changes » Monitoring, associations and governmental entities of the sector. In TGI, risks are classified into two broad categories: unfavorable to the interests of » Development of the rates file. strategic risks the emerging risks, which are grouped » Monitoring, analysis and evaluation of the overall impact of regulatory the company. initiatives depending on the results obtained from the identification, assessment, control and monitoring of the risks and impacts of the company; thanks to this clas- » Monitoring the status of the project according to the MMCV (Maturity Model sification, it is possible to design mitigation actions Failure to achieve the promise and Value Creation.) that reduce the impact thereof. » Follow-up of risk response plans through the Risk Management Indicator. of value of the investment » Performance evaluation report to contractors. (Communications and early projects of TGI due to alerts to controllers, PAR services.) » Lessons learned based on ex post evaluation of the projects and / or phase deviations in scope, time or closure. Figure 15. Risk and impact matrix, 2018 cost. » Monitoring of safety and occupational health indicators to contractors.

» Follow-up to the accident rate of contractors and action plans for major RC# 2018 RISKS MATRIX Impact impact accidents. » Implementation of the Contractors Program. 1 Regulatory Changes Unfavorable To The Corporate Very low Low Medium High Very High » Follow-up on the accident rate of TGI and the action plans with the greatest Interests 1 2 3 4 5 impact. Work accidents that affect the » Implementation of the Safe Infrastructure Plan. Failing To Achieve The Value Promise Of Investment 2 5 5 3 1 health of employees » Bi-monthly inspection of maintenance tools.

Projects Of Tgi Due To Scope, Time Or Cost Reviations 5 » Inspection of protection systems against falls and confined spaces. 6 4 6 » Inspection Checklist for compliance with the HSEQ Manual.

Very High Very 8 Work-Related Accidents Affecting Employees’ Health 7 3 » Training of the HSEQ Manual to auditors focused on how to conduct fol- 1 low-up. No Business Operational Continuity 3 4 4 High 2 2 Social Incidents In The Execution Of Tgi Operations 13 11 » Compliance with maximum operational and minimum contractual pressures in transportation systems. 5 And Projects 11 4 7 9 » Compliance with the Maintenance Plan, Integrity Plan, Reliability Plan and Possible Sanctions By The Environmental Authority 3 8 2 Maintenance Strategy.

6 Medium 12 12 10 10 » Compliance indicators, gas pipeline availability and operational reliability

Failure To Comply Financial Plan Probability No operational continuity of (compression stations and gas pipelines). 7 the business » Walk-through and inspection of the Right of Way . Fraud And Corruption 2 » Monitoring of gas quality (operation) and corrosive gases (integrity). 8 Low 13 » Compliance with security plans. Failure To Comply With The Value Promise In The 9 » Follow-up on the implementation of the requirements of the Business Con- Incorporation Of New Businesses tinuity Plan. 1 » Emergency attention times. 10 Commercial Management Weaknesses Very low 11 Safety Vulnerability And Information Integrity » Monitoring of the matrix of early warnings of possible social incidents. (Map Inherent risk/ of actors.) RI# RC# Controlled risk Lack Of Adequate And Motivated Human Capital To Uncontrolled risk / Proven risk Social incidents in the » Follow-up to materialized social incident attention. (Minutes and / or sup- 12 Achieve The Strategy assessment assessment execution of TGI operations and ports of the attention.) projects » Report of registration, control and monitoring of Social PQRS (questions, 13 Economic Losses Or Reputation Affectation Due To Source: TGI S.A. ESP. claims and complaints). Unfavorable Judicial Decisions » Clearance of the closing of the contract of the projects.

50 » Monitoring and control of environmental regulations. 51 » Legal requirements matrix automation. Sanctions of the environmental » Monitoring and control of environmental requirements in the field during authority the activities of the business life cycle. » Development and implementation of the strategy of the hierarchy of mitigation.

9In accordance with the RUT and the ICONTEC NTC 5747 and NTC 3728 norms

2018 Sustainable Management Report » Compliance with the financial risk mitigation strategy (debt / EBITDA). Failure to comply with the » Compliance with indicators (covenants) to maintain the risk rating at acceptable Financial Plan levels. » Management of OPEX and CAPEX before the presidency committee.

» Follow up on the reports of the ethical channel, program to strengthen culture. » External evaluations for some of the critical processes focused on fraud and corruption. Fraud and corruption » Include as part of the scope in the audit programs the function segregation evaluation. » Program to strengthen the ethical culture of the company’s employees and adherence to the code of ethics.

» Compliance with the strategic initiatives of TGI’s UEN (cities and mobility, Failure to comply the promise thermal generation, industry, midstream to producers and energy infrastructure). » Application of investment policy and procedure. of value in the incorporation of » Identification of growth opportunities for the company: GreenField and new businesses BrownField. » Monitoring the status of the company’s project portfolio.

» Timely attention (15 business days) of the requests made by the senders, generated from the administration of commercial contracts. » Compliance with the Customer Relationship Program. Weaknesses in commercial » Strengthening of external and internal customer communication channels. » Attention of contractual disputes in its initial stage (direct agreement) and subse- management quent delivery to the Directorate of Judicial Processes. » Compliance with the PEC Strategic Plan aligned with the New Strategy of TGI (cities and mobility, thermal generation, industry and oil sector). » Updating and preparation of documents required for commercial management.

» Compliance with the implementation schedule of the information security Vulnerability in the security model as a result of the PETI. » Vulnerability monitoring and analysis program (e.g. segregation of SAP Etical and integrity of systems and hacking functions). information. » Scheme of information, database and network encryption. » Protocol for transfer and destruction of information. ADMINISTRATIVE AREA COLLABORATORS » Compliance with the Annual Training Plan. Bogotá D.C. Not having the right and » Turnover rate of the positions considered critical for the achievement of the motivated human capital to objectives and strategy. » Labor Environment Index. We have adopted at TGI a risk policy achieve the strategy » Implementation of the performance management model. that establishes the commitments Economic losses or » Having an updated procedure for the provision of judicial contingencies in accordance with IFRS 37. and action framework for the reputational involvement » Implement a computer system for the efficient control of procedural actions management thereof, as well as due to unfavorable judicial within the cases that the company faces. » Implementation of Litigation service manual for Grupo Energía Bogotá, the steps for the identification, decisions pursuant to the needs of TGI. 53 52 assessment, control and monitoring of the risks and impacts Source: TGI S.A. ESP. associated with compliance with our strategic objectives.

2018 Sustainable Management Report Economic value generated

COP $137 million net profit

Main financial results ...... 58 Direct economic value generated and distributed ...... 60 56 2018 Sustainable ManagementReport

6.1 Why is it relevant? GRI 103-2GRI managed? 6.2 GRI 103-1GRI ght the following: ght thefollowing: guarantee financialstrengthamongwhichwehighli- With thisinmind,weimplementedprocessesthat tribution totheorganizationalsustainability. pment of new businesses, thus providing a key con- our presence in the market and promote the develo- pital allows us to supporttheoperation,consolidate The strategicmanagementofrisksandeconomicca- elaboration ofthebudgetanditssubsequentmo- » affecting theriskratings. vestment and expansion projects of TGI, without ensure thenecessaryliquiditytoundertake thein- profile anda lowerfinancingcost; theseelements instruments thatallowtohavealongermaturity when obtaining,prepayingorrefinancingdebt » priate structures. that, inbothcases,thecompanyhasappro- of taxplanning;asaresulttheseactions,wefind investment capital(equity),aswelltherevision tablish theappropriatecombinationofdebtand timal capitalstructurewasrevised,seekingtoes- »

Optimization ofthedebtprofilecompany, In ordertomaximizefinancialefficiency, theop- From the budgetary perspective, the correct From thebudgetary perspective, thecorrect How isit perspective, points out the following objectives: perspective, pointsoutthefollowingobjectives: To achievethispurpose, thestrategicmapofTGI, initsfinancial satisfy theexpectationsof differentstakeholders. income andstrengtheningourpositioninthemarket, inorderto nancial evaluationofprojectsaimedatincreasingthecompany’s fitability andprofitstotheinvestor, aswelltocarry outthefi- gotá-- aimsattheefficientuseofresourcesandmaximize pro- policies, bothexternalandthosedictatedbyGrupoEnergía Bo- observance ofnorms,regulationsandcurrentapplicable --characterized bythecontinuousmonitoringofindicators, the The developmentofadequatefinancialandriskmanagement » the execution ofpreventiveactions. enabling theproactiveidentificationofrisksand on thefulfillmentofcorporategoals,while costs andexpenses,allowstohaveaclearvision nitoring and control, both in the income lines and tional and financial performance. tional andfinancialperformance. the differentstakeholders oncommercial,opera- to investors, convey confidence and offer clarity pany’s website, aswellthequarterlycallswith » situation. may begeneratedonthecompany’s financial to minimizetheiroccurrence and the effects that possible risksthatmayariseinthisarea,seeking » responsible. ned byTGI S.A.ESP, orbythosewhoarelegally company, aswellthepropertyinterestsow- assets, theoperationandpersonnelof surance policiesthatsafeguardandprotectthe risks associatedwiththeoperation,throughin-

In TGI, we manage the correct insurance for the In TGI, wemanagethecorrectinsurancefor Also, fromthetaxpointofview, weidentifythe The periodicpublicationofresultsonthecom- GRI 103-3GRI vis thisissue? commitment vis-à- TGI assessits does 6.3 How Dynamize profitable growth. rried outinaccordancewithColombianlegislation. banks forpaymenttosuppliers.Theimplementationoftheelectronicbillingprogramwasalsoca- Grupo Energía Bogotá, to the Colombian authorities and for the encryption ofthe files sent to the currency, fortheprocessofconversiontopresentation currencyforreportingpurposestothe se ofautomatingthecalculationsmadeforforeigncurrencyvaluation,underdollarfunctional From the accounting perspective, we implemented improvements to the SAP system with the purpo- in approximately 3.5times,afactthatdemonstratestheconfidence ofthemarket inthecompany. The issuanceofthebondwaspositivelyreceivedbyinvestors,asitoverburdened(bidtocover) were inthe2022bond. » to thecompanysavingsfor11.25milliondollarsinpaymentofinterestsnext10years. » » Decreaseinfinancialexpenseasaconsequenceoflowerrate. Thisoperationwillgenerate The 2028bondreflectsthedegreeofinvestment TGI, byeliminatingclauses(covenants)that Extension oftheexpirationtermmaindebtinstrumentcompany efficiency. Maximize financial financial supported. of riskintheinvestmentsmade byTGI’s treasuryteamis team oftheGEB,withwhich the assessmentoflevel Additionally, wehaveaprocedurelinked tothefinancial ders ofthesyndicatedloan. vestors, bondholders,riskratingagenciesandstakehol- On aquarterlybasis,wepreparefinancialreportsforin- value lossesareevaluated. the Audit andRiskCommittee, inwhich possibleasset ttee oftheManagementandBoardDirectors, Board ofDirectors,theFinancialandInvestmentCommi- pany. Thisfollow-upisdonethroughthemeetingsof allow measuringthefinancialperformanceofcom- and reviewthefinancialstatementsindicatorsthat periodically monitorthegoalsestablishedinbudget, To verify progressinmeetingtheobjectives,atTGI we rated, thefollowingareidentified: 2028 andarateof5.55%.Amongthebenefitsgene- of 5.70% andtheissuanceofanewbond toexpirein redemption ofthebondsexpiringin2022andrate 750 milliondollarsstandsout,whichimpliedtheearly the DebtManagementOperationforanamountof gh actions,amongwhichthesuccessfulexecution of promoted theachievementoftheseobjectivesthrou- torates (FinancialPlanning,AccountingandTreasury) In 2018,theFinancialVicePresidencyanditsdirec- 57 58 2018 Sustainable ManagementReport

expenses costs and Analysis of 6.3.1 Main financial

Source: TGI S.A. ESP. results Profit andLossStatement Depreciation, andprovision amortization Depreciation, andprovision amortization RESULT OFCONTINUOUS OPERATIONS ADMINISTRATION EXPENSES * Figures presented* Figures inUSD RESULTS BEFORE TAXES OPERATIONAL RESULTS Gas transport service Exchange difference General expenses Personal services Financial income Financial Operation costs Other expenses Other Financial Costs Financial GROSS PROFIT Other income Other Equity Tax Profit tax EBITDA (Cost) Taxes Net which involvedaninvestment of4.2milliondollars. cio; aswellanincreasein thereceiptofBOMTMariquita-Cali, for theoperationofcompressors ofParatebueno andVillavicen- million dollars.Likewise, therewasanincreaseinpersonnelrequired chnics andintegrityoftheinfrastructure thatrepresentedavalueof1 the feesoriginatedbyconsultanciesindesignsandstudies ingeote- out byTGI for theassuranceofassetintegrityandreliability, aswell as 5.7 million dollars due to the implementation of action plans carried assigned inmaintenanceandrepairorderscontracts, whichwas The increaseinoperatingcostsduring2018isexplainedby thevalue Table 11.Profit andLossStatement -148.992 239.899 264.263 140.231 -25.456 149.733 323.888 -80.033 -90.035 413.255 -12.933 -11.140 12.802 -6.052 -9.502 -3.216 -1.871 1.092 -3.177 1.954 -862 2017 -102.863 -164.819 249.334 136.756 153.370 -33.453 276.911 328.979 -18.080 441.730 -81.594 -16.615 -3.646 -3.928 -7.799 5.876 2.660 5.906 4.239 2018 -30 0 US$ variation 12.648 -15.827 -12.827 -10.142 -6.940 -7.998 -3.476 28.476 9.434 4.784 -1.747 3.637 5.092 17.172 3.952 -7.113 1.871 -430 -751 832 % Variation -100,0 % -132,8 % 438,0 % 202,3 % -96,6 % -79,2 % 31,4 % 28,9 % 62,3 % 23,6 % 10,6 % -2,5 % 14,2 % 13,4 % 74,9 % 4,8 % 2,4 % 3,9 % 6,9 % 1,6 % EBITDA personnel derivedfromthereceiptofBOMTMariquita-Cali. personnel requiredfortheoperationofVillavicencioandParatebueno stations;aswelltheincreasein tage higherthanthatofrevenuesduetotheincreaseincostsexplainedprevioussection,and However, thegrowthinEBITDA wasnegativelyimpactedbytheincreaseincostsandexpensesapercen- meaning anincreaseof1.6% equivalentto$5.1 million dollars. ses andtheequitytaxfromoperatingincome, wentfrom$323.9millionin2017to329.0 millionin2018, The EBITDA ofthecompany, whichexcludes depreciation,amortization,provisions,otherincomeandexpen- Source: TGI S.A.ESP. COLLABORATORS AREA

USD mm ADMINISTRATIVE 221,7 2010 Bogotá D.C 257,1 2011 . 289,2 Figure 16.GrowthFigure inEBITDA, 2010-2018 2012 359,0 2013 EBITDA 372,1 2014 361,1 2015 355,1 2016 323,9 2017 329,0 2018 59 Direct economic value generated Operational Income and distributed Operating income in 2018 reached $441.7 million, Operating income in 2018 GRI 201-1 Y 102 - 7; ODS 2 Y 8 which represents an increase of 6.9% compared reached $441.7 million, to last year. On the one hand, the fixed charges, Table 12. Direct economic value generated and distributed that is to say, those that are remunerated in the which represents an investment, amounted to $ 260.9 million dollars, increase of which means an increase of 6.8% with respect * The figures are presented in USD 2017 2018 Variación $ Variación p.p to 2017. The increases are explained by the adjustments in the Producer Price Index (IPP) of Economic value generated 6,9% the United States and also the income from the Cusiana Phase III expansion project (which was Operational Income 413.054.586 441.730.447 28.475.861 6,8 % started-up at the end of June 2017) along with Financial income 12.801.983 2.659.885 -10.142.098 6,1 % the operation kick-off of the Cusiana-Apiay-Ocoa project, which began operations in January 2018. On the other hand, the fixed charges in Colombian Total Income 426.056.569 444.390.332 18.333.764 11,7 % pesos (COP) that are destined for administration, operation and maintenance (AOM) expenses, rea- Distributed economic value ched an amount of US $147.2 million; that is, there was a 6.1% growth compared to the prior year. This Operative costs 54.213.496 62.723.969,15 8.510.473,15 15,69% variation is explained by the increase in consumer prices (IPC in Colombia or CPI in english) that was Salaries and benefits of employees 18.772.378 24.826.200,48 6.053.822,48 32,24% applied for 2018, corresponding to 4.09%, in addi- Payments to capital providers 89.583.706 106.264.309,08 16.680.603,08 18,5 % tion to the TGI projects.

Payments to the government 6.455.424 4.946.357 -1.509.067 -23,4 % Figure 18. Operational Income, 2010-2018 Community investments 627.167 946.818 319.651 33,7 %

Total distributed economic value 169.652.171 199.708.261,65 30.056.090,65 18,48% 465,5 468,0 Economic value withheld 439,1 432,9 441,7 390,8 413,3 338,1 TOTAL 256.404.397 244.682.070,40 11.722.326,60 4,57% 294,1

Source: TGI S.A. ESP.

Figure 17. Direct economic value generated and distributed USD mm

Revenue 2010 2011 2012 2013 2014 2015 2016 2017 2018 444 Salaries Income and fringe VER Source: TGI S.A. ESP. benefits for Community employees investments Capital 244 Regarding the variable charges in USD, the amount equivalent to the ave- payment to rage daily volume transported during 2018 was 446.3 million Colombian Operational 32,24% suppliers 33,7% costs pesos, which represents a variation of 3.8% compared to the previous Payments to 15,69% 18,5% year. This means that the variation in income from variable charges was $ 61 60 government 2,922 million dollars. -23,4% On the other hand, the income received for complementary services during 2018 presented a variation of 0.5 million dollars; in other words, there was an increase of 10.2% compared to 2017. Source: TGI S.A. ESP.

10 Economic value withheld: calculated as economic value generated, less distributed economic value.

2018 Sustainable Management Report PAYMENTS TO CAPITAL PROVIDERS ECONOMIC VALUE WITHHELD Table 13. Variable charges in USD The payment to fund providers remained stable in The decrease in the Economic Value withheld is mainly relation to 2017, presenting a variation of only 0.1%; due to the increase in “payments to capital providers” as a unlike the payments to the Government that pre- result of the debt management operation, which involved 2018 US$ variation % Variation sented a decrease of 23.4% due to the fact that in the payment of a premium of USD 14.25 million to the hol- 2017, a capital tax payment was made, which was not ders of the Bonds maturing in 2022 for the early redemp- Gas transport service applied for 2018. tion thereof.

Fixed charge in USD 260.886 244.294 16.593 6,8 % COMMUNITY INVESTMENTS Fixed charge in COP 147.155 138.736 8.419 6,1 % Community investments showed an increase of 33.7% in relation to 2017, reflecting the company’s Variable charge in USD 27.801 24.880 2.922 11,7 % commitment to strengthen the genuine relationship with our stakeholders and the restructuring of our bu- Supplementary Services 5.888 5.345 543 10,2 % siness strategy with a focus on Sustainable Develop- TOTAL INCOME 441.730 413.255 28.476 6,9 % ment, under the design of a new strategy in the field aligned with the GEB. Supplementary Services

Parking 556 1,113 -558 -50,1 % Figure 19. Rating to TGI by Moody’s, Fitch and S&P Gas dehydration 1,130 1,199 -70 -5,8 %

Balance accounts reconciliation 1,838 1,382 456 33,0 %

Occasional charges 0 1 -1 -90,8 % The Baa3 rating is confirmed. Reserve premium 0 0 0 N/A Stable perspective to bond issuance expiring at 2028. Other 2,364 1,649 715 43,4 % The credit profile of the company benefits from a high TOTAL SUPPLEMENTARY INCOME 5,888 5,345 543 10,2 % Moody's proportion of income coming from the contracted capacity and moderate leverage. Source: TGI S.A. ESP.

The BBB rating is confirmed; steady perspective that reflects the Operative costs business strength, steady generation of cash flow and expectation of moderate increase in the mid-term leverage. Fitch Operating costs presented an increase TGI’s exposure to regulatory risk is considered moderate. of 15.6% with respect to 2017, mainly due to the implementation of action plans The good relation of TGI with the parent company, Grupo Energía carried out by TGI in order to be up-to- Bogotá is considered positive. date with the current safety regulations, SALARIES AND BENEFITS OF integrity risk management and assurance EMPLOYEES of the reliability of the infrastructure and, this way, collect part of a lag reported in The salaries and benefits of employees previous years. Furthermore, there was had a 31.9% growth in relation to 2017 due The BBB rating is confirmed and a steady perspective, thanks 63 62 an increase in fees originated by consul- to the increase in personnel required for to which TGI remains the most important subsidiary of Grupo tancies in designs and studies of geote- the operation of the Paratebueno and Vi- Energía Bogotá (GEB). chnics and infrastructure integrity. llavicencio compressors; as well as due to S&P Stability and predictibility of the cash flow of the company, the reception of the BOMT Mariquita-Cali, thanks to the institutional and regulatory framework. which began at the end of August 2017 and which was maintained during 2018.

Source: TGI S.A. ESP

2018 Sustainable Management Report Table 14. Investment in emergency attention works

6.3.2 Financial implications, GAS PIPELINE VALUE

opportunities and risks due to climate BALLENA-BARRANCABERMEJA 1.285.002.632 change BOYACA-SANTANDER 654.537.235 LA BELLEZA - COGUA 636.998.807

GRI 201-2 MARIQUITA GUALANDAY 142.197.533

In terms of opportunities, during 2018 TGI carried out CUSIANA APIAY BOGOTA 3.919.283.125 the review and analysis of the evolution of the Niño MARIQUITA CALI 2.586.687.513 phenomenon and its impact on the provision of the gas transport service for the year 2019, and in terms LA BELLEZA - VASCONIA 124.367.041 of risks, we deployed preventive measures to avoid materialization of risks associated with the Climate TOTAL $ 9.349.073.886 and External Forces threat, through maintenance activities, which include: Source: TGI S.A. ESP.

Effort relief Right-of-way inspections

Air Crossings Inspections Geotechnical Maintenance Plans

The financial implications derived from climate change in the company are associated with the investment we make every year to address incidents that affect the integrity of the infrastructure and the continuity of the service; these situations result from threats related to the climate and external forces, among other factors, which include the movement and instability of soils, landslides and bottom undermining by the 65 64 currents of water bodies and damages by third parties. In 2018, the investment for this concept amounted to $ 9,349,073,886

FIELD COLLABORATOR Manizales, Caldas

2018 Sustainable Management Report Operations with integrity, reliability and efficiency

104,7% compliance with the goal in the income impact decrease indicator

67 66 Initiatives and Projects ... 69 Operational indicators .... 70

2018 Sustainable Management Report 68 2018 Sustainable ManagementReport GRI 103-2 GRI managed? 7.2

How isit 7.1 Why is it relevant? of contractual commitments. of contractualcommitments. of long-termrelationshipsandthefulfillment the needs of customers, the strengthening ability ofthecompanytotimelyrespond This issuehasahighincidenceonthe reasonable levelforthecompany. permanently assessingthatallrisksareata public, ourcustomersortheenvironment, No adverseeffectsonitsemployees,the availability andbestindustrypractices. with the highest standards of quality, and reliablenaturalgastransportservice, plans, aimedatprovidingacontinuous,safe preventive actions,detectionandmitigation define managementstrategiesanddevelop infrastructure isexposed,assessrisks, identify thethreatstowhichitstransport Integrity managementatTGI aimsto 90% of 2018 covered plan attheend The Inspection of thetotal gas pipelines.

GRI 103-1GRI to guarantee the transport of gas. to guaranteethetransportof gas. identified inthefindingsplan, inordertocontribute the facilitiesandpromoting correctivemeasures and 2018,wasaimedatupdatingthediagnosisof sive evaluationandmaintenanceplanthat,in2017 progress inexecution istheproductofanaggres- red 90%ofthetotalgaspipelines.Thisquick sion planwascreatedthat,bytheendof2018,cove- ture inspectiongoalswereestablished,andarevi- Based onthedefinitionofstrategy, theinfrastruc- tenance management. strategic objective of TGI: achieve an efficient main- tive disciplinethatensuresthefulfillmentofP3 damental purposetheimplementationofanopera- the VicePresidencyofOperations,hashadasfun- The IntegrityManagementPlan,designedin2017by natural gas. natural gas. TGI’s leadershipinthetransportationof have contributedtotheconsolidationof ensured thereliabilityofsupplyand asset managementstrategies,whichhave Operations designs maintenance and For thisreason,theVicePresidencyof and billing, affecting the company’s income. also generatetheinterruptionofcontracts because thesuspensionsinservice related totheprofitabilityof theoperation, The availabilityofthesystemisdirectly 7.2.1 2018 Initiatives andProjects » to addressincidentsinatimelymanner. se processandthesigningofinternalserviceagreements,whichguaranteeresources time indicatorshowedasignificantreduction,relatedtotheoptimizationofrespon- » nance abovetheproposedgoal. » national level. ming processofpreventiverepairsandtheconservationinfrastructureat achievement isassociatedwiththeimprovementsimplementedinprogram- » service withareducedimpactintheavailability. which fulfilledwiththeattentionofeventsandmanagedrecovery the experience, thecompetencesandavailabilityofincidentattentionteam, Páez, departmentofBoyacá,ineventstakingplaceJune. Thesesituationstested emergencies of Ballena,inthedepartmentLa Guajira,reportedinJanuary;and Despite the increase in the number of emergencies, in 2018 the average attention Despite the increase in the number of emergencies, in2018 the average attention Intermsofoperationalefficiency, wemanagedto execute thebudgetformainte- We highlighttheresponseandrecoveryofservicewithoutincidentin Compliance with99.6% ofthemaintenanceplandesignedforyear. This 2019 Challenges documents for integrity and standardization. documents forintegrityandstandardization. » lines inspectedundertheILI(In-LineInspection)inspection methodology. ponding to11%,percentagethatcompletestheinspection ofallgaspipe- » model foragaspipelineandimplementationoftheintegrity software. » systems. in nationalandinternationalstandardsapplicabletothegastransportation portation andaretheresultofananalysisrecommendationsmade ce to the bestpractices and internationalstandardsin natural gastrans- These planning,monitoringandcontroltoolshavebeenbuiltwithreferen- and efficiency. points, allowsmanagingtheintegrityofinfrastructurewithopportunity the establishmentofresponsiblepersons,proceduresandspecificcontrol detailed plan isestablishedwithspecific goals andmilestonesthat,through ted theappropriationofconceptoperationaldiscipline, wherebya The implementationoftheIntegrityManagementprogramalsorepresen- Design of the Asset Management Plan, through the construction of master Design oftheAssetManagementPlan,throughconstruction ofmaster Integrity Management Plan: validation and delivery of the optimized risk Integrity ManagementPlan:validationanddeliveryofthe optimizedrisk Development ofthelastsectioninfrastructureevaluation, corres- 99,6% Compliance with the year. plan designedfor of themaintenance 69 Table 15. Average monthly availability of gas pipelines’ transport capacity

Month Average availability per month Activities carried out

Jan-18 100.00% No scheduled maintenance was carried out.

Tuning work of control loops in the Paratebueno EC were car- Feb-18 99.97% ried out, which affected the transport capacity.

Mar-18 100.00% No scheduled maintenance was carried out.

Scheduled maintenance to cut and connect the 2 "Albania 7.3 How does TGI assess its commitment branch in Quebrada Canutillo and cause-effect matrix testing Apr-18 99.94% works in the Compressor Station of Paratebueno, which affect- vis-à-vis this issue? ed transportation capacity. May-18 100.00%

Jun-18 100.00% No scheduled maintenance was carried out. COLLABORATORS ADMINISTRATIVE AREA Jul-18 100.00% Bogotá D.C. Aug-18 100.00% GRI 103-3 Sept-18 100.00% Scheduled works were carried out without affecting the trans- TGI’s internal control system establishes monitoring mechanisms for the targets and indicators, such as audits for com- Oct-18 100.00% port capacity. pliance with the integrated management system and internal operational or control audits. Nov-18 100.00% Faced with the objectives of the Corporate Strategic Plan (PEC), the indicators related to the availability of the service allow to monitor the effectiveness of the implemented action plans and to evaluate the inspection, maintenance and Dec-18 100.00% emergency attention protocols. Source: TGI S.A. ESP.

The service continuity index and the operational reliabi- Figure 20. Average monthly availability of gas pipelines’ transport capacity lity index are no longer part of the objectives included in Operational the Corporate Strategic Plan and were replaced by the income impact decrease indicator, which aims to measu- 100,010% indicators 2018 re the reduction percentage in the income caused by the 100,000% execution of scheduled maintenance by TGI and which generate supply suspensions; the fulfillment of the goal 99,990% in this indicator for 2018 was higher than 104.7%. 99,980% 99,970% 99,960% 99,950% This indicator measures the availability of transport ca- 99,940% pacity of gas pipelines, taking into account the impact of 71 70 99,930% Availability of gas scheduled maintenance. 99,920% pipeline systems 99,910% (%) jul-18 jun-18 oct-18 feb-18 abr-18 sep-18 nov-18 mar-18 ago-18 ene-18 may-18

Source: TGI S.A. ESP.

2018 Sustainable Management Report Status of Pipeline Inspections Mitigation Threats- Third Party Damages

The area inspected in 2018 using the MFL-ILI technique was 23%, which, compared to the In 2018, 5 collaboration agreements were signed with third-party infrastructure, which have target set at 20%, represents a compliance of 115%. a common area of influence with our gas pipelines, to ensure an adequate definition of technical terms. Compared to 2017, there is a reduction in the number of agreements, related to the re-statement technical terms.

Table 16. Strategic objective follow-up of infrastructure integrity This management is carried out to avoid damages by third parties and define the safe coexistence of projects with the infrastructure of TGI S.A. ESP avoiding damages to facilities, the environment and the community. Strategic Target 2018 Compliance Projects Specific objectives Objectives (%) percentage Figure 22. Coordination Agreements Signed

Ensure the Percentage of area inspected Integrity management infrastructure with ILI tool throughout the 20% 115% 25 22 program. integrity. transport infrastructure.

20 Source: TGI S.A. ESP. 15 Figure 21. Graph of the infrastructure area inspected 2018 9 10 6 5 6 5 5 1 1

4 0 3 3 2014 2015 2016 2017 2018 TOTAL 2

Figure 23. Projects Managed 250 200 mar-18 abr-18 may-18 jun-18 jul-18 ago-18 sep-18 oct-18 nov-18 dic-18 200

Area Inspected (%) 150 127 Source: TGI S.A. ESP. Table 17. Activities of other inspections 100

In 2018, inspections of the Right of Way 52 Executed/ Executed Goal 50 (RoW) were carried out in 3782 km, co- Activities 73 72 rresponding to 98% of execution with res- (2018) 0 pect to the scheduled routes in the year. Inspection of Air Crossings 22 crossings / 23 0

The goals of other inspections during CIPS: 1076 km/863 Km 2018 were fulfilled as follows: Cathodic Protection System DCVG: 409 Km/ 100Km 2015 2016 2017 2018 Inspection POTENTIAL TAKE ON / OFF: 4465 poles / 3000 INSP URPC: 185/ 107

Source: TGI S.A. ESP. Source: TGI S.A. ESP.

2018 Sustainable Management Report Construction of the value proposal

COP $ 130.853 MMCOP invested in infrastructure projects

Initiatives and Projects ... 76 Product Description...... 78 76 2018 Sustainable ManagementReport of thenaturalgastransportsector. business opportunitiesbeyond theregulatoryframework offers arobustplatformwhich challengeistoseeknew those involvedandinterested ineachphase, and nes, amongotheraspects,thedeliverablesofprocess, planning, execution, closureandtransfer. Thistooldefi- project mustgothroughtoreachitsstructuring,selection, value creation,wherebywestandardizethephasesthata » 8.2.1 2018 Initiatives and Projects Design and implementation of a maturation model and Designandimplementationofamaturationmodel 8.1 Why is it relevant? of ouractivity. ment environmentalandsocialaspects proactive managementoftheenviron- transport requiredbythemarket, allow tely meetsthevolumesofnaturalgas the operationalinfrastructureadequa- that, in addition to guaranteeing that raised theneedtogeneratestrategies growing influenceofstakeholders have The dynamicsofthemarket andthe quality service. se ofvalueareliable, continuousand cost-effective manner, fulfillingthepromi- ral gas transport capacity in a timely and projects, withtheexpansionofnatu- growth, maintenanceandimprovement pates, throughthemanagementofTGI’s The ConstructionVicePresidencypartici- TGI INFRASTRUCTURE Paratebueno, Meta GRI 103-1GRI equipment andconstructionof encapsulatedFLARE. lar construction systems,soundproofing of compression and environmentalsetting,through innovationinmodu- plemented newtechnologies, morefriendlytothesocial of projects,whichare:scope, timeandcost,thisproject im- evaluation, controlandmonitoringinthetriplerestriction environmental, economicandsocial.Inadditiontothe ging positiveimpactsinthethreeareasofsustainability: tions -Paratebueno andVillavicencio-focusedonmana - »

Construction andstart-upoftwonewcompressionsta- new technologies of the sector in our infrastructure. new technologiesofthesectorinourinfrastructure. fuel such as natural gas, and the implementation of strategies: theexpansionofuseacleanerfossil we generateasacountrytotheatmosphereintwo demand, promotesthereductionofemissionsthat respond to the prospects of increasing natural gas tinuity, which in addition to ensuring our ability to sidency tobusinessexpansionandoperationalcon- This compositionguidestheactivityofVicePre- with theotherareasofTGI. and managesinstitutionalgrowthprojectstogether this VicePresidency, sothat,articulateditmatures Management andtheAssurancein effectively implementedin2018placedthisProject The operationalreorganizationplannedin2017and managed? 8.2 How isit GRI 103-2 GRI in a forthcoming book. in aforthcomingbook. recovery processofthepieces willbepresented for the company andtheresults of therespectful that thedevelopmentofthisprojectrepresented Quimbaya culture. The additionalinvestment skeletal remainsand150ceramicutensilsofthe heritage ofthenation;13tombs“cancel”, 5 ments, whichweredeliveredtothecultural was abletoanalyzemorethan300,000 frag- As a result, the team of project archaeologists order toplantheirextraction. identify thetypeofpiecesandtheirposition,in penetration radars-GPR,whichallowedto NE-type unmanned aerial vehicles and ground technologies suchas:overflightswithDRO- of thisproject,itwasnecessarytoimplement construction ofagaspipeline. Forthesuccess technical andoperationalcharacteristicsinthe tion protocols,wemanagedtocomplywiththe rescuing the pieces following all the conserva- time ofoneyear;inthisperiod,additionto were adequatelytreatedinanunprecedented of 37 sites of archaeological interest, which a highlevelofcomplexityduetothediscovery man groupsoftheQuimbayaethnicgroup. With cultural heritageoftheregionoccupiedbyhu- challenge intheprotectionofhistoricaland nia Loop (Zarzal-La Tebaida), withanimportant » ConstructionandcommissioningoftheArme- ce noise emissions. ce noiseemissions. sor unit with state-of-the-art technology to redu- meters inheightandthepurchase ofacompres- ting ofperimeternoiserefractionscreens10 construction ofasoundproofingsystemconsis- in thethreeareasofsustainability, throughthe bic feetandimplementingacoordinatedaction transport capacityofoursystemby17millioncu- the PuenteGuillermostation,expanding » ecosystem oftheMagdalenaRiver. lombian departments,andtheprotectionof ing servicesupplyin84municipalitiesof8Co- without suspendingtheoperation,guarantee- at thecrossingpointwithMagdalenaRiver of pipelinetheCentral-Easterngas municipal levels,allowedTGI toreplaceasection of RiskManagementattheirdepartmentaland the control entities and the authorities in charge months and,throughanactionarticulatedwith an interventionplanthat,inarecordtimeoffour factors wereanalyzedandstudiedtodevelop ment wasimplemented,whereallthepossible River. Inthisprojectanappropriateriskmanage- » SubfluvialCrossingProjectoftheMagdalena Construction of the ninth compression unit at Construction oftheninthcompressionunitat The construction and La Tebaida, Quindío THE QUIMBAYA CULTURE ARCHAEOLOGICAL PIECE OF region. and cultural heritage ofthe protection ofthehistorical challengeimportant inthe Tebaida), represented an Armenia Loop(Zarzal -La commissioning ofthe 77 » Safe Infrastructure Project through the adaptation of the Bunkers of the Ballena - Barrancabermeja gas pipe- Project Armenia Loop (Zarzal - La Tebaida) line. As part of the action plan and opportunity management for improvement in occupational safety, this pro- Increase the transported capacity of gas to the municipalities ject was carried out in order to reduce the risk levels to of Caicedonia and Sevilla (Valle del Cauca), La Tebaida, Calarcá, Objective which employees who perform maintenance and opera- Montenegro, Armenia, Quimbaya, Filandia, Circasia and Salento tion work are exposed in pipeline valves, where adjust- (Quindío). ments were made to improve ventilation conditions and Budget executed in 2018 $14,225 MMCOP ($4.97 MMUSD) allowed to reduce the confined space condition of the highest level of risk type 1, to a lower level of risk type Works executed in 2018 Start-up of the Zarzal - La Tebaida gas pipeline 3. This factor has a positive impact on response times, Capacity increase reached in 2018 8.3 MMSCFD thanks to the possibility of direct intervention that does not require the involvement of the fire department, nor % of execution at the close of December 2018 100% the use of specialized assisted ventilation equipment, elements that, in addition, reduce maintenance costs. Deployment of technology and specialized processes to guarantee the adequate rescue of 37 sites of archaeological interest of the Social and environmental impacts managed in During the year, 14 facilities of this type were modified. Quimbaya culture, along with the construction of the gas pipeline. 2018 Implementation of geotechnical and environmental protection actions. TGI INFRASTRUCTURE. Puente Guillermo, Santander Project Magdalena River Crossing

Ensure the reliability of the Central-Eastern gas pipeline to Table 18. 2018 Product Description Objective guarantee transport to the shippers of 84 municipalities in the south and west of the country.

Budget executed in 2018 $16,332 MMCOP ($5.71 MMUSD)

Project Cusiana Phase III Construction of a new subfluvial crossing of the Magdalena River by Works executed in 2018 means of the Horizontal Directional Drilling PHD method, network Increase transportation capacity of interconnection and operational start-up. Objective natural gas in the Cusiana-Vasconia Gas Pipeline by 20 MMSCFD to Capacity increase reached in 2018 Not applicable meet the shippers’ requirement.

Budget executed in 2018 $8,829 MMCOP ($2.92 MMUSD) % of execution at the close of December 2018 100%

Final activities of the adjustments in the compression stations of The articulated action between the control entities and the Works executed in 2018 Puente Guillermo, Miraflores and Vasconia authorities in charge of Risk Management at their departmental and municipal levels, allowed TGI to carry out the replacement Social and environmental impacts managed in of the gas pipeline crossing on the Magdalena River, without Capacity increase reached in 2018 20 MMSCFD 2018 suspending the operation, guaranteeing the supply of the service in % of execution at the close of December 2018 100% 84 municipalities in 8 Colombian departments and the protection of the ecosystem of the Magdalena River. With this expansion, it is possible to satisfy the demand of the Social and environmental impacts managed in service for the municipalities of the Mid-Magdalena, the Coffee 2018 Growing area and the cities of Medellín and Cali. Project Cusiana Phase IV

Increase transportation capacity of natural gas in the Cusiana- Project Cusiana – Apiay – Ocoa Objective Vasconia Gas Pipeline by 58 MMSCFD to meet the shippers’ requirement.

Increase the transportation capacity of natural gas by 32 MMSCFD Budget executed in 2018 $62,296 MMCOP ($20.32 MMUSD) Objective between Cusiana and Apiay, allowing to meet natural gas transportation requests from Cusiana, Apiay and Villavicencio. Construction of the ninth compression unit and soundproofing Works executed in 2018 system consisting of perimeter noise refraction screens, 10 meters Budget executed in 2018 $29,171 MMCOP ($10.29 MMUSD) high. 79 78 Commissioning of two new compression stations in Paratebueno Works executed in 2018 Capacity increase reached in 2018 17 MMSCFD and Villavicencio % of execution at the close of December 2018 52.26% Increase in capacity reached in 2018 32 MMSCFD With the purchase of a compressor unit with cutting-edge % of execution at the close of December 2018 100% Social and environmental impacts managed in technology and the construction of the soundproofing system, New more friendly technologies to the social and environmental 2018 hearing emissions are reduced, mitigating the social and setting were implemented, through innovation in the modular environmental impacts of the operation of the station. Social and environmental impacts managed in construction systems, soundproofing of the compression and 2018 Construction of three 30-inch Loops and a total length of 38 km, construction equipment of FLARE, the latter reducing the Works that will be executed in 2019 in the sections Porvenir - Miraflores, Puente Guillermo - La Belleza atmospheric emissions of the new station. and Puerto Romero - Vasconia

2018 Sustainable Management Report 8.2.2 2019 Challenges

» Construction of the project to replace the branches » Execution of the Ballena-Barrancabermeja bidirec- of the southern region of Bolívar, which guarantees tionality project. the supply of the domestic service demand in the municipalities of Puerto Wilches, Galán, Yondo, Can- » Renewal of the City Gates in the entry centers of tagallo and San Pablo. the gas pipeline network of TGI to the cities with the highest volumes of consumption. » Construction of the Cusiana phase IV project, which will increase the transportation capacity of the Cusia- » Continuity of the Safe Infrastructure project through na - La Belleza gas pipeline by 58 million additional the adaptation of the bunkers with the characteriza- cubic feet per day, through the construction of three tion of all the structures of this class in the country. 30-inch Loops in a total area of 38 km.

8.3 How does TGI assess its commitment vis-à-vis this issue?

GRI 103-3

The Model of Maturation and Value Creation involves specific process and results indicators, such as compliance with milestones and deadlines; we have also established high-level measurement and control tools, in aspects that range from budget, execution, process, delivery times and dates, which allow us to evaluate the fulfillment of the value promise of each project and the commissioning date, an element that affects the economic aspects, given the fines and cost overruns, and the reputation of the organization.

The Model also includes a risk map composed of 5 phases:

Table 19. Phases of the Maturation and Value Creation Model

Phase Initiative Alternatives Project Execution Closing

Risk workshop Qualitative, not Analysis of high level If the contractor Characteristics Monthly follow up. Closing reports. very specific. risk. is defined, it is included. The Model of Maturation and Value Alternatives are 80 To action plans Includes materialized Creation involves specific process 81 selected and for It is done when it is to mitigate the risks, implemented projects with a already formalized defined risks. The contingency plan and and results indicators, such as Observations more formal offer, as a project for the progress and exe- status of environ- qualitative analysis is company. cution percentage mental and social compliance with milestones and included is calculated. issues. deadlines

Source: TGI S.A. ESP.

2018 Sustainable Management Report Growth and market development

8,1 The general perception of customers against the quality of TGI service

Initiatives and Projects ... 84 Quality of service measurement results ...... 88 84 2018 Sustainable ManagementReport managed? managed? 9.2 How isit 103-2 GRI pliance of contractual commitments are evidenced. pliance ofcontractualcommitments areevidenced. the actionsandsynergiesexecuted toensurecom- clients inthedifferentregions ofthecountry, where llow-up to the execution of the relationship plan with reports andvolumestransported, aswellthefo- The controlactivityhasasinputthemonthlyincome tions aredefinedaroundthecompetitivestrategy. se totheneedsofclientsismonitoredandac- forums, instances in which the company’s respon- cial committeesandinternalexternalbusiness Commercial Development,whichleadsthecommer- and market developmentistheVicePresidencyof The area responsible for customer management 9.1 Why is it relevant? term business relationships. term businessrelationships. tual termsandtostrengthenlong- tisfaction, compliancewithcontrac- risks associatedwithcustomersa- same time, reducetheincidenceof growth ofthecompanyand,at the sector, tothepermanenceand consolidation ofTGI’s positionin These activitiescontributetothe Gas emissions. air qualityandreduceGreenhouse energetic contributiontoimprove titive world,andwhichrequirean needs ofanincreasinglycompe- and designingsolutionstosuitthe local market, accessingnewniches strengthening theleadershipin this, wedevelopactionsaimedat ket atthelocallevel;toachieve sumption andthenaturalgasmar- which seekstostrengthencon- element ofTGI’s businessstrategy, ve thepurposessetoutinfirst mercial managementaimstoachie- tionship withcustomers,thecom- In additiontomanagingtherela- 103-1GRI Significant milestoneswereobtainedintermsof: TheTGI 2018ForumeventwasheldonNovember7with » » » » Positioning of TGI as promoter of the gas industry and con- Designoftheportfolio of commercial products not regula- Call: Ithadahighlevel,interpretedasaneventthatexcee- Quality of lecturers and topics: The panelists managed to Quality oflecturersandtopics:Thepanelistsmanagedto and Projects and Projects 9.2.1 2018 Initiatives gthens the systematization of processes. gthens thesystematizationofprocesses. » » a scoreof4.7 points(outof5). energy sector).Theoverallbalanceoftheeventobtained ders of:government,senders,unions,industryandthe the participationofmorethan270people. (Firstlevellea- of naturalgasinColombia. neration ofalliancesthatcontributetothedevelopment solidation ofthecompanyasarelevantactorforge- ted forindustryandthermalgenerators. its business lines: its businesslines: mercial Developmentpromotedthefollowingactionsin ter credibilityofTGI inthesector. together thegroupofhigh-levelguests,generatinggrea- ded theexpectationofpreviousyearsandthatbrought pany andthesector. contents giventhemomentexperiencedbyourcom- providing currentinformation,reinforcingtherelevant lly, themostrelevanttopicsforsectorwereexposed, meet theexpectationsofattendeesandadditiona- Updateofthecommercialsystem,anactivitythatstren- Furthermore, during2018theVicePresidencyofCom- include: and theconversionofvehiclestoVNG.Mainresults mass transportsystems,dedicatedcorporatefleets of gasandthearticulationactionsthatemphasized management emphasized the promotion of the use of TGI and the other agents in the sector. The year’s a commercialschemewiththelearningandleverage ring theyearbecauseitachievedincorporationof line, specificallyin NGV, wasthemostadvanced du- Natural Gas(NGV) andresidentialsegments.This » Large cities.Itincludesthecommercial,Vehicular for Transmilenio: morecleanairforBogotá. contributed totheincorporation of741gasbuses managed tosecurethecommercial conditionsthat »

Together withotheractorsinthe gaschain,we Hatonuevo, Guajira La TGI INFRASTRUCTURE ned toTGI. analysis, itwasrecommended thatthecompressorbecalledJamundíBranchCompressor anditsfirstoptionwasassig- and theothertransporter, identifyingthattheremaybemorebeneficiaryusersthan thoseinitiallyevaluated.Fromthis It isimportanttonotethatthe ElCerritocompressorprojectwasre-evaluatedbytheUPME, usingtheargumentsofTGI » Faced with the quality of the gas transportation service, Facedwiththequalityofgastransportationservice, cesses, as well as adjusting processes and generating cesses, aswelladjustingprocessesandgenerating to theorganizationandstandardizationofbusinesspro- some improvementopportunitieswereidentifiedthatled their implementation. ces thatallowthegenerationofsharedvaluethrough in ordertodesignaportfolioofproductsandservi- sis ofthethermalsector, tounderstandtheirneeds, were focusedonmappingtheindustryandanaly- in thesector. it is necessary to promote alliances with other actors the Bogotásavannah;forsuccessofinitiative, characteristics ofnaturalgasthatreachesthearea frastructure ofTGI, whichseekstobenefitfromthe liquefied petroleumgasprojectthatwillusethein-

» » systems. plants intheoperationalworkcenters,toBi-Fuel was allowed. approximately 19millioncubicfeetperday(MMpcd) Holcim that represent an incremental volume of tries suchasPerenco, Cemex,Argos,Kronosand of theserviceforusenaturalgasinindus- bia suchasPalmira, MedellínandManizales. tural-gas operatedvehiclesinothercitiesofColom- other actorsintheincorporationofanother90na- » » » in 2019. operation andmaintenancefleetusingnaturalgas system, meetingourgoalofhaving100%the quarter of2019wewillreach40vehicleswiththis to thevehiclenaturalgassystem.Duringfirst » Industry and thermal generation. In 2018, activities Industry and thermal generation.In2018,activities Midstream. In 2018, we managed to structure a Midstream. In2018,wemanagedtostructurea We carriedouttheconversionoffourbackup We alsoparticipatedactivelywithdistributorsand We carriedouttheconversionof20TGI vehicles Through thedistributorsordirectly, theprovision » In regulatory matters, relevant topics were managed Inregulatorymatters,relevanttopicsweremanaged and willbeimplementedin2019. dback withcustomers.Anactionplanwasestablished monitoring protocolsfortheirimplementationandfee- zational growth: to supportthedevelopmentofmarkets andorgani- » » » We updatedthetarifffileatJune 30, 2018,inorder IntheTransitory NaturalGasSupplyPlan,weconti- Among the actions of Normative Useful Life, the AmongtheactionsofNormativeUsefulLife, the port service is issued. port serviceisissued. logy fortheremunerationofnaturalgastrans- (CREG) canenforceoncethenewtariffmethodo- that theEnergyandGasRegulation Commission to bepreparedtimelydelivertherequirements social andenvironmentalmatters. challenges wehavefacedinconstruction,both presented, showingboththepositivethingsand and UPME,wheretheprogressofeachprojectwas a priority;likewise, weheldmeetingswithCREG the information of theIPAT projects thatTGI has as lity andsupplyofthesector. Thisway, wefurnished jects considerednecessarytoguaranteethereliabi- nued withactionsthatallowtheadoptionofpro- 4,808,350. tion ofthisgaspipelinewentfrom$1,391to CREG Resolution 106of2018,wherethevalua- out by the company. The result is obtained in ments basedonthedetailedengineeringcarried which wasappealedbyTGI fortechnicalargu- re CREGnotifiedresolution003of2018, Galán-Yondó gaspipelineweremanaged,whe- mission. Furthermore, aspectsrelated to the trative actionof17assetswassenttotheCom- request for the commencement of the adminis- 85 9.2.2 2019 Challenges 9.3 How does TGI assess its commitment We also held several meetings among » Households and businesses. Define a focus for commercial action the different entities and agents of the that allows the definition of strategies to be implemented in an vis-à-vis this issue? sector, aimed at ensuring that the Pa- articulated manner with the agents of the sector. cific’s import infrastructure benefits the greatest number of users. To achieve » VNG. To look for the increase of the volume through the develo- this goal, we promoted workshops with pment of cases of dedicated fleets according to opportunities GRI 103-3 the main international traders and mee- identified through a mapping with greater coverage. tings with entities, guilds and agents, to understand the needs and design a pro- » Industry. To advance in the understanding with the other actors At TGI, we receive feedback on our activities through posal for the Government. of the system, in order to promote the joint work with producers customer relations spaces, generated through works- and distributors for the materialization of the designed products hops and training sessions that provide information of and services. It is also necessary to develop cases of industries interest for monitoring the implemented action plans identified as incremental demand. and that allow us to know first hand the perception that TGI has set itself the customers and shippers have of our products and servi- challenge of improving » Develop an agenda for the construction and application of tax and ces. Likewise, in the company we apply a service quality response times and regulatory benefits cases that promote the use of natural gas.. measurement tool, which provides objective and quan- strategically allocating » Midstream. In conjunction with the operations and regulation tifiable monitoring data and key inputs to address the resources that support areas, it is necessary to work on the development of alternatives opportunities for improvement and maximize the positi- the standards and for the remuneration of the Ballena-Barrancabermeja gas pipe- ve results of management. service protocols. line, and also in the design of the new businesses and services portfolio, complementary to the transport activity.

» In terms of quality of service, TGI has set itself the challenge of improving response times and strategically allocating resources that support the standards and service protocols that were struc- MASSIVE TRANSPORTATION VEHICLE DEDICATED TO NATURAL GAS tured in 2018. Bogotá D.C.

87 86

2018 Sustainable Management Report Quality perception Results 2017 2018

This indicator emphasizes 3 fundamental axes:

Quality of service measurement 1. Quality of people: interest and service attitude; advice and technical level of the TGI people. 8,4 8,1 results 2. Management given to the requests: agility to solve the requirements, transparency and process times. 3. Commitments and day-to-day service: compliance with the agreed commitments and the effectiveness or Our monitoring system is a tool that evalua- quality of the interaction results. tes the management carried out in the daily maintenance of the relationship with cus- Total respondents 88 99 tomers, with the objective of having quanti- The perception that clients have of their Source: National Consulting Center. tative and qualitative information about the relationship with TGI is measured throu- effectiveness of the implemented activities gh an annual survey, contracted with the and obtaining inputs that guide the design of National Consulting Center (CNC), and in new strategies and actions. 2018, 99 surveys were carried out, repre- COLLABORATORS ADMINISTRATIVE AREA Bogotá D.C. senting a response rate of 41%. It is important to note that the base of possible The general perception of contacts of our 47 clients, went from 168 in 2017 to 240 in 2018, a factor that affects the quality that the client the reduction of the response rate by 9 has with respect to TGI percentage points. The main aspects me- still relates to levels of asured in the survey and its results are: excellence.

In 2018, 99 surveys were conducted, which represent a Table 20. Results of the perception survey on the relations- response rate of hip of clients with TGI 41%

Expectation fulfillment Results In general terms, according to the surveying entity, the general perception of the quality that the client has with respect to TGI is 2017 2018 still on levels of excellence because the score of 8.1 is within the “Excellent” range. Question: You would say that your relationship with TGI: 1. Exceeds your expectations 14 % 2 % Table 21. Quality perception scale 2. Meets your expectations 77 % 84 % 9 % 3. Is below your expectations. 12 % 89 88 Quality perception scale 4. Does not know, does not respond. 2% Poor Fair Excellent Total respondents 88 99 1 2 3 4 5 6 7 8 9 10

Source: National Consulting Center.

2018 Sustainable Management Report Team with talent, motivation and results-driven

15.967 Hours of training for employees

Employment...... 94 Training and development ...... 99 92 2018 Sustainable ManagementReport

10.1 Why is it relevant? TGI. perform individuallyandcollectivelyin regarding the activitiesandrolethey company, improvingpersonalsatisfaction nership ofthecollaboratorstowards while strengtheningthesenseofow- ration, minimizingtheincidenceofrisks, of productivityandefficiencyintheope- PEC contribute to maintaining high levels with the14strategicobjectivesof and theindividualdevelopmentplans The alignmentofthesetrainingspaces ment ofcorporategoals. of eachmembertheteamtofulfill- ration andmake visiblethecontribution nical andsoftskillsrequiredbytheope- follow-up actionstostrengthenthetech- performance, weundertooktrainingand is effectiveandmaintainhighlevelsof In ordertoensurethatthiscontribution tegic Plan(PEC)indicators. with thefulfillmentofCorporate Stra- achievement of the goals that contribute provide fundamentalelementsforthe ded bythecompany’s operationsand created inresponsetothe needs deman- tions and leadership in TGI have been Each oneoftheroles,hierarchicalposi- 103-1GRI applied toallcollaboratorsofthecompany. measurement spacesandthepsychosocialsurveys Management andwhichareanalyzedthroughthe actions thatareexecuted bytheHumanResources gotá guidesthetalentmanagementactivitiesinTGI, The HumanResources Policy ofGrupoEnergíaBo- GRI 103-2GRI managed? 10.2 How isit Projects Initiatives and 10.2.1 2018 »

» » Based on measurements of the work environment Basedonmeasurements of thework environment Socialization at the national level of the strategic Socializationatthenationallevelofstrategic ConstructionoftheOrganizationalCulture. Adiag- and process. team membersandtheimportanceofeachrole greater understandingbyallstrategicplanning The purposeofthesespaceswastogenerate to theachievementofcorporateobjectives. map andthecontributionthateachactivitymakes designed a training program strategically aligned designed atrainingprogram strategically aligned junction withthecorporate vicepresidencies, spaces. Asaresult,theresponsible area,incon- that thecompanyhadbeenassigning fortraining tion indicatedinsufficiencyvis-à-vis theresources out inthecompany, since theemployees’ percep- sibility ofthespacesandtrainingprogramscarried Management identifiedtheneedtoimprovevi- and psychosocialsurveys,theHumanResources ment plans. ning skills,closinggapsanddesigningdevelop- corresponding actionplansintermsofstrengthe- achieve the objectives of the PEC and design the set outthebehaviorsandattributesneededto te goals.Theseactionsprovidedinformationto what isrequiredfortheachievementofcorpora- culture, identify the desired one and describe nostic toolallowedustocharacterizetheexisting

» » » The lack of connection with the activities and the leaders of the administrative areas, manifested by the Thelackofconnectionwiththe activitiesandtheleadersofadministrativeareas,manifested bythe Thelowinvestmentintraining, coachingortrainingspacesthatsomeemployeesperceive. In conjunction with the GEB, we began the assessment In conjunction with the GEB, we began the assessment GRI 103-3GRI ted in2019. of all groupleaderswillbebuilt, which will be implemen- preparing thisreport,theindividualdevelopmentplans of thisanalysis,whicharebeingreviewedatthetime were evaluatedandinterviewed.Basedontheresults consultant, staffemployeesinmanagementpositions process forcompanyleaders.Throughaspecialized plan wascommunicatedtoallteammembers. tributions ofeachspacetoachievethegoals.Thetraining with theobjectivesofPEC,whichemphasizescon- of thecompany. action plans, in conjunction with the different instances tention bythearea,inadditiontogenerationof opportunities forimprovementthatrequirespecialat- ment aspectsthathavebeenpositiveandwhatarethe measured withthepurposeofidentifyingmanage- In termsofsatisfaction,theworkenvironmentindexis commitment vis-à-visthisissue? 10.3 How doesTGI assessits Manizales, Caldas FIELD COLLABORATOR collaborators inthefieldoperations. operation. intheand efficiency high levels ofproductivity contributes to maintaining objectives ofthePEC plans withthe14strategic individual development The alignmentofthe reon, suchas,forexample: that thecompany’s employeeshavethe- Resources area,aswell as the perception promoted and developed by the Human luating theeffectivenessofactivities This toolprovidesinputsthatalloweva-

» » Strategic allies. The members of the Human Ma- Synchronization of the activities and benefits of Synchronization of the activitiesandbenefits of ce throughvisitsandfrequentcontacts. application procedures,makingagreaterpresen- man Managementissues,suchasdocumentand the activitiesandprocessesrelatedtoHu- different companyheadquarterstofollowupon nagement teamassumedthefollow-upof the collaborators of the operation in the field.. the collaboratorsofoperationinfield.. the collaboratorsofadministrativeareaswith 93 At TGI, we intend to continue advancing in the consolidation of a team with Table 22. Number of employees by gender and job category talent, motivation and results-oriented and to achieve it we have established as short-term goals: Top man- Mid-man- Profession- Advisor / Support Totales agement agement al

» Closure of the performance assessment pro- » Technological implementation of support pla- cess for the company’s leaders, execution of tforms for human management processes, Total the individual development plan. in order to improve the efficiency of management. » Construction of the map of positions and cri- 2017 3 10 6 20 1 8 66 129 20 160 96 327 423 tical talents, input for the design of corporate » Implementation of organizational culture succession plans. . plans. 2018 5 10 7 16 1 6 61 133 22 163 96 328 424

» Performance appraisal process for execution Source: TGI S.A. ESP. and support charges.

» Agreement with the union within the fra- Table 23. Total number of collaborators by age mework of the collective bargaining and socialization of the results of the process. From 18 to From 31 to From 41 to From 51 to Above 61 Totals 30 years 40 years 50 years 60 years years 10.4 Employment Total 13 16 42 130 28 119 12 55 1 7 96 327 423 GRI 102-7; 102-8; 405-1 2017 2018 13 18 40 130 31 118 11 56 1 6 96 328 424 Figure 24. Total number of collaborators by gender11 Source: TGI S.A. ESP.

96 Table 24. Total number of new hires. Women

327 GRI 401-1 Men 423 Age range Bogotá Mariquita Villavicencio Totales colaborators 2017 424 From 18 to 30 years 1 1 2 4 colaborators From 31 to 40 years 1 2 1 1 3 8 2 2018 96 From 41 to 50 years 2 1 5 From 51 to 60 years 1 1 2 95 94 Women Above 60 years 0 Source: TGI S.A. ESP. 328 Men Totals 4 6 2 1 6 19

Source: TGI S.A. ESP.

11Los 424 colaboradores reportados en 2018 tienen contrato a término indefinido y jornada completa.

2018 Sustainable Management Report Table 25. Total number of withdrawals. Table 26. Turnover and hiring rates

GRI 401-1 2017 2018

Total number of collaborators at the beginning 355 423 Age ranges Bogotá Totales of the period Total number of collaborators at the end of the 423 424 period Income 91 19 23 From 18 to 30 years 1 1 2 Withdrawal 18 New hires rate 25,63% 4,49% From 31 to 40 years 4 6 10 10.5 Benefits for workers Staff turnover rate 14,65% 4,37%

From 41 to 50 years 0 3 3 Source: TGI S.A. ESP. From 51 to 60 years 1 1 2 WORKERS IN FIELD In 2018, the company reduced both the turnover rate and the hi- GRI 401-2 / ODS 8 Buga, Valle Above 60 years 0 1 1 ring of new labor compared to 2017, aspects that reflect not only the consolidation and soundness of the business model, but also the Totales 6 12 18 confidence on the part of the employees in TGI and the commitment Table 28. Mandatory social benefits for full-time employees of the company to guarantee the labor stability of its work team.

Source: TGI S.A. ESP. As part of the strategy to consolidate talent management, the company has a package of work benefits for its MANDATORY FRINGE BENEFITS 2017 2018 employees that exceeds the requirements of the law, thus guaranteeing Social Securty yes yes positive results in the perception of Table 27. Direct employees covered by collective Pension fnd yes yes Freedom of agreements workers’ welfare, generating a sense of ownership for the company and guaranteeing healthy levels of coe- Other: Severance Fund association Service Premiums yes yes 2018 xistence and work climate. Vacations

GRI 102-41 Total employees of the organization* 424 Source: TGI S.A. ESP.

Grupo Energía Bogotá has voluntarily adhered to Total employees covered by collective agreements** 317 the United Nations Global Compact, which is why it Table 29. Voluntary social benefits for full-time employees ensures compliance with its 10 principles, thus per- % employees covered by collective agreements 75% manently requesting contractors to express their knowledge and acceptance in the development of Prestaciones sociales voluntarias 2017 2018 any contracting process and previous subscription of Source: TGI S.A. ESP. a contract. Life Insurance yes yes * Total employees approved per plant: 448, 424 of which are In 2018, TGI did not evidence any complaints made recorded as active at December 31, 2018. Medical insurance yes yes by workers of contractors and subcontractors, regar- Marriage aid yes yes ding the violation or limitation to freely exercise the **Corresponds to the employees covered by the totality of the 97 96 right of association, freedom of association and co- benefits included in the collective agreement established be- Food aid yes yes llective bargaining. tween TGI and Sintraelecol. Vacation Premium yes yes 100% of the employees of TGI are covered by extension in three (3) benefits approved by the Board of Directors: Health Policy, Flexible days yes yes Educational Assistance and Salary Increase. Other: Results bonus yes yes

Source: TGI S.A. ESP.

2018 Sustainable Management Report Table 30. Use of benefits

2017 2018 10.6 Training and development

ODS8 423 424 Total employees12 In 2018, the Human Talent Management of TGI designed a training program in In the period reported, there was an accordance with the needs required for the development of operations, strate- increase in both the number of emplo- Employees using the benefits 311 309 gically aligned with the objectives of the PEC, which places special emphasis yees and the number of training hours on the contributions of each space in the achievement of the company goals. compared to the 2017 figures, an as- Percentage of benefit use 69% 73% pect that reflects once again the com- The foregoing, in response to the results obtained in the measurements of work pany’s commitment to breed a team environment and the psychosocial surveys applied by the company to its em- of excellence, which allows not only to Source: TGI S.A. ESP. ployees, which identified, as an opportunity for improvement, the need to in- guarantee an adequate management form in a timely manner all the members of the work team, the different training in the development of its operations, schedule and the training spaces, so that the commitment and resources that but to set a goal of success in the fulfi- the company invests in training a talented team become even more visible. 10.5.1. Maternity and llment of the PEC objectives. paternity leave

GRI 401-3 Figure 25. Number of trained employees and training hours

Table 31. Maternity and paternity leave

2017 2018

MATERNITY OR PATERNITY LEAVE

Employees entiled to maternity or paternity leave 1 8 3 2 344 Employees who enjoyed maternity or paternity leave 1 8 3 2 employees 17 more 15.967 5.522 Employees who went back to work after completing their 1 8 3 2 trained than 2017 training more than maternity or paternity leave hours 2017 Employees who remain in the organization 12 months after 1 8 3 2 completing their maternity or paternity leave

Work return rate 100% 100% 100% 100% Source: TGI S.A. ESP. Retention rate 100% 100% 100% 100% 98 99

Source: TGI S.A. ESP.

ADMINISTRATIVE AREA COLLABORATOR Bogotá D.C. 12Total employees approved per plant: 448, 424 of which are recorded as active at December 31, 2018.

2018 Sustainable Management Report Performance Evaluation Average annual training hours per employee GRI 404-3 As part of the activities programmed annually Table 33. Percentage of employees evaluated by by TGI, which it plans to use to achieve exce- gender and job category13 GRI 404-1 / ODS8 llence in the development of its operations, the company has a measurement plan that allows 2018 evaluating 100% of employees in aspects re- 344 employees received training in 2018, corresponding to lated to job performance, individual skills and GENDER / LABOR 82% of the active workforce as of November 30. The avera- abilities and the ability to work as a team. CATEGORY ge training hours for TGI employees in 2018 was 45.2, which % represented an increase of 14 hours compared to the avera- This way, like in 2017, in 2018 TGI evaluated Top management 3 10 100% ge for 2017. 100% of its employees in all the labor catego- Mid- ries that make up its hierarchical structure, an 4 19 100% activity that as a result allowed, in addition to management managing the Development Plan for the next Coordination 16 54 100% year, being a benchmark of the benefits and Table 32. Average training hours per employee work plans for the team. Execution 45 66 100% Support 24 171 100%

Total 92 320 100%

Source: TGI S.A. ESP. 2018 TOTAL COLLABORATORS ADMINISTRATIVE AREA WBogotá D.C. Labor Training hours Average Training hours Average Training hours Average category

Top 186 26,5 933 55 1.119 41 Management Mid- 420,5 60 1.968,5 73 2.389 66,5 Management

Coordination 778,5 51,6 4.080 66,8 4.858,5 59,5

Execution 2.332,5 47,5 2.129 34,9 4.461,5 41,5

Support 1.813 90,6 1.326 14,73 3.139 53

Total 5.530,5 57,6 10.436,5 40,6 15.967 38

101 100

Source: TGI S.A. ESP.

13According to the organization’s policy related to the performance evaluation, the employees subject thereto must have been engaged with the company for minimum 6 months at the time of the evaluation; therefore, the report presented was prepared with the head count of the personnel that fulfilled this condition and, so the distribution thereof by levels. The above does not mean that the number of personnel with performance evaluation should be equal to the number of people hired at December 31, due to the personnel turnover.

Furthermore, the support is not obtained from SSFF because at the date of preparation of this report, the evaluation process has not been closed and the result in the number of people evaluated could vary due to the turnover effect.

2018 Sustainable Management Report Occupational safety and health

0 fatalities and occupational diseases among collaborators and contractors

Initiatives and Projects ... 105 IRepresentation of workers in formal committees worker health and safety company ...... 107 104 2018 Sustainable ManagementReport

11.1 Why is it relevant? safety andhealthculture. the development of a sustainable flexibility andadequatebasesfor gh jointwork,generatestrength, of thecompanyandwhothrou- who arepartofthestrategicallies management ofitscontractors, lopment ofTGI, butalsoforthe factor forthegrowthanddeve- (SST) hasbecomenotonlyakey Occupational HealthandSafety its workers andstakeholders. vel, aswelltherecognitionof tional, national,governmentalle- recognition ofTGI attheinterna- in productivityandpromotethe dicators andsignificantadvances factors that are reflected in the in- gas pipelinesatthenationallevel- the operationandmaintenanceof trol ofthehazardsgeneratedby the risk assessmentandthecon- has abearingonthereductionof Management System (SG-SST) Occupational SafetyandHealth The execution ofactivitiesthe tices. following thebestindustryprac- to guaranteehighperformance tractors; beingthisacommitment dents amongitsworkers andcon- occupational diseasesandacci- te self-careandthepreventionof and corporate culture to promo- which isreflectedinitsstrategy tem representsapriorityforTGI, pational Health and Safety Sys- The management of the Occu- pational AccidentFrequencyIndex. in themeasurementofasingleindicatorOccu- and accidentprevention-aprocessthatisreflected company, withthepurposeofstrengtheningsafety self-care amongemployeesandcontractorsofthe tegrate leadershipmanagementandthecultureof For 2019, wehavesetourselvesthechallengetoin- and reduceaccidentsduetounsafeactsinTGI. the exposuretoriskofworkinconfinedspaces projects basedonbehaviors,whichaimtoreduce we execute infrastructureandsafetyenhancement cator, coveringbothemployeesandcontractors through theLost TimeIncidentFrequency(LTIF) indi- To achieve thesepurposes,wemonitorouractivities vention ofworkaccidents. the parties assurance for the workers and the pre- gue andjointwork,whichaimedtoachieveamong cipation ofthecompany’s leadersinspacesofdialo- through interventionsbythepresidentandparti- contractor companies,generatingvisibleleadership, In 2018,TGI strengthenedthemanagementwith Committee onOccupationalSafetyandHealth. fulfillment ofthe System objectivesandtheJoint and theavailabilityofresourcesforsatisfactory tion oftheSGSST, throughtheiractiveparticipation company havebeencommittedtotheimplementa- Management. However, alltheemployeesof te, whichbelongstotheSustainableDevelopment Management System throughtheHSSubdirectora- TGI administerstheOccupationalHealthandSafety managed? managed? 11.2 How isit luated through: luated through: tems; theeffectivenessofSST managementiseva- prevention and epidemiological surveillance sys- pational diseaseswithinTGI, throughthepromotion, is themitigationofwork-related accidentsandoccu- The mainpurposeofOccupationalSafetyandHealth commitment vis-à-vis thisissue? 11.3 How doesTGI assessits » » » » Internalauditsscheduled by theIntegratedMa- Programofcriticalactivitiessuchasheights,confi- Strategic Road SafetyPlan (PESV inspanish):all ContractorManagement:weexecute 100%ofthe 18001 and ISO 14001 standards. 18001 andISO14001standards. with therequirementsof ISO9001,OHSAS trative workcenters,inorder to verifycompliance nagement System inalloperationaland adminis- was 95%. was 95%. established. Thecomplianceoftheseprograms generated, andnewoperationalcontrolswere order tomitigaterisks;newprocedureswerealso ded activities,trainingandpersonnelcoachingin ned spaces,loadliftingandelectricalrisk:itinclu- compliance ofthisprogramwas96%. procedures according tolegalrequirements.The the frameworkofthisinitiative, wealsoupdate preparation andbasicnationaltrafficrules.Within fensive driving and driving test, basic mechanics, were trainedinroadsafetyissuessuchas:de- underwent psychosensometricexaminationsand employees whodrivethecompany’s vehicles pose of preventing accidents. pose ofpreventingaccidents. contractors and contract inspectors with the pur- out 100%oftheInterventionPlanenvisagedfor 1072 of2015andResolution 1111of2017. We carry à-vis thelegalframeworkdevelopedfromDecree Action Planaccordingtothediagnosismadevis- Projects Initiatives and 11.2.1 2018 » » » » » Emergency response and assistance system: we Emergencyresponseandassistancesystem:we Quarterlyfollow-upoftheAnnual SST Plan,plan- Externalauditsofcompliancewithlegalrequire- Internal audits scheduled by the internal control Internal audits scheduled by the internal control ExternalauditsbytheBureau Veritas certifying compliance ofthisprogramwas85%. the emergencyplansandriskmanagement.The ters andintheoperativeworkcenters,updatesof members, drillsintheadministrativeheadquar- develop activitiessuchastrainingforbrigade grams are evidenced. grams areevidenced. pliance and monitoring of the activities of the pro- ned at the beginning of the year, where com- body ments inSST by the company and by contractors. by thecompanyandcontractors. ce withlegalrequirementsandSST performance area to demonstrate themanagement, complian- INFRASTRUCTURE PROJECT BUNKERS SAFE 105 » Due compliance with the SST regulations.

Considering the main objective of SST, the effectiveness » Delivery of personal protection elements for the respective activities according to the current regulations. of the management is assessed each month, mainly The main purpose of through the accident rate indicators, which include the Occupational Safety and » Periodical occupational exams carried out frequency index, severity index, LTIF, absenteeism, pre- health is the mitigation valence rate and incidence of occupational diseases; the results are presented each month to the Presidency of work-related accidents Committee and to the Board of Directors. and occupational diseases 11.3.3 Occupational Safety and Health within TGI. Indicators

GRI 403-2

We monitor the indicators of accidents, occupational disease and absenteeism of direct collabora- 11.3.1 Representation of workers in tors and contractors on a monthly basis, with the aim of guiding the actions towards the promotion formal committees worker health and of care and prevention in the company. For the calculation of the indicators that are regulated by Resolution 1111 of 2017 of the Ministry of Labor, the constant used is 240,000 and for the calculation of the international LTIF indicator, a safety company constant of 1,000,000 is used.

Table 34. Distribution of the employees represented in Table 35. Accident rate distribution of TGI by category and gender GRI 403-1 the TGI Health and Safety Committees 2017 2018 TGI’s commitment to Occupational Committee Distribution TOTAL Safety and Health is reflected in the Indicator Direct collaborators Contractors Direct collaborators Contractors active participation of workers in the 4 per company formal committees; in 2018, 39 em- Male Women Men Women Men Women Men Women ployees, corresponding to 9% of the 4 per employees 424 active employees as of Decem- COPASST 31 Number of Employees 328 96 987 177 328 96 811 313 ber 31, represented the company in 23 “Oversight” two committees whose main objecti- representatives in each Hours worked 597.861 181.537 1.930.790 328.900 683.671 192.918 2.587.124 694.908 operational work center ves are health and safety. Days worked 70.211 21.298 227.152 38.694 80.432 22.696 304.673 79.015 Coexistence Committee 4 per employees 8 Days of absence due to 12 2 304 7 24 0 159 0 work accidents Source: TGI S.A. ESP.

Total work accidents 6 1 28 4 12 1 27 0

Occupational accident 2,4 1,3 3,5 2,9 4,2 1,2 2,5 0,0 11.3.2 Health and safety issues frequency rate

Occupational accident addressed in formal agreements with 4,8 2,6 37,8 5,1 8,4 0,0 14,7 0,0 severity unions GRI 403-4 Source: TGI S.A. ESP. 107 106 Within the framework of the Collective Labor Agreement between TGI and the Sindicato de Trabajadores de Energía de Colombia SINTRAELECOL, 10 chapters were developed, of which one, spe- 14To calculate and build the SST indicators (Frequency Index, Severity, occupational disease and Absenteeism) of the direct TGI collaborators, it cifically chapter VII, is dedicated to occupational health and safety, is necessary to have the monthly information sent by the Payroll area of the company (structure, overtime, permits to work, medical leave due to common illness) and the ARL (report of work accidents). As for the calculation and construction of the SST indicators of the contractors; they which means that 10% of the document cares about these issues. send an Excel format each month, designed by TGI; it is used for them to report each month the requested data (man hours worked, common and As a result of the Convention, compliance with the following actions occupational diseases, medical leave cases, work-related accidents, among other data), in order to consolidate and unify information. The GRI related to health and safety was agreed: 403-2 indicator rates broken down by region are not included, since they are not statistically representative for the operation of TGI.

2018 Sustainable Management Report Table 36. Absenteeism distribution of TGI by category and gender Table 37. Number of work accidents of direct collaborators by gender 12 2017 2018 8 Indicator Direct collaborators Contractors Direct collaborators Contractors 6 6

Men Women Men Women Men Women Men Women

Number of medical leave 65 29 207 17 44 26 328 159 1 1 due to common illness Men

Days lost due to 270 65 853 49 187 87 2.211 739 Women occupational disease15 2016 2017 2018 Occupational disease 0 0 0 0 0 0 0 0 frequency rate Fuente: TGI S.A. ESP.

Labor absenteeism rate 3.845,57 3.051,9 3.755,19 1.266,34 2.324,94 3.833,24 7.256,96 9.352,69 due to illness In order to prevent accidents within the company and to monitor the results obtained by the contractors, we carried out several activities, including:

Source: TGI S.A. ESP. » Inductions to contractors on issues related to occupational health and safety, with 599 contractors trained in Bogota from 55 companies; and 918 contractors trained in the The lost days index refers to those working days in which the districts, stations and ROW of 80 companies. employee actually stops working because of diseases of common origin. In 2018, the rate of lost days for direct employees » Follow-up to the action plans carried out in the 5 contractor companies that reported registered a decrease of 11% compared to 2017, a situation that medical leave cases for work-related accidents in 2018. led to a reduction in the percentage of absenteeism equivalent for the same concept. In 2018 » Training for professionals responsible for the health and safety of contractor companies. there were no fatalities or In 2018, there were no fatalities or occupational illnesses in both occupational illnesses in » Training for contract auditors with TGI. direct collaborators and contractors. both direct collaborators and » Awareness in accident prevention led by the president of TGI. Of the 13 work accidents reported in 2018 among direct collabo- contractors. rators of the company, 4 were medical leave cases and generated 24 lost days.

Of the 27 work accidents reported in 2018 among workers of contractor companies, 12 were medical leave cases and genera- COLLABORATORS IN ted 159 lost days16. With the aim of preventing accidents and occupa- FIELD Mariquita, Tolima tional diseases of our contractors, we manage our efforts to carry out monitoring and compliance activities against legal requirements such as: HSEQ induction to 1517 workers from 135 contractor companies; follow-up visits to the action plans of the companies that presented medical leave cases and training to 109 108 contract auditors.

15The days lost correspond to the number of days that the worker really stops working in his working hours and working days, from the first day of disability; on the other hand, the days of medical leave are the total days that the occupational doctor allocates to the worker, these are calendar days including Saturday, Sundays and holidays.

16 To learn more about occupational health and safety indicators, see the annexes to this report.

2018 Sustainable Management Report Territory transformation

More than $ 3.575 millon Voluntary social investment 2018

Sustainable Development Strategy...... 113 Initiatives and Projects ... 115 We recognize that the company’s Social Management Plan » Understanding the challenges of sustainability and has been the key path for our social management to be part the need for businesses to adapt to these challen- of a Due Diligence and also to generate value for our stake- ges to rethink the Group’s businesses and generate holders. However, after a thorough exercise of self-analysis value therefrom. and recognition of our challenges, we consider it fundamental 12.1 Why is it relevant? to start a restructuring of what Sustainability means for TGI. » Sustainable development is not a center of responsibility foreign from the business, but is an issue that That is why in 2018, in line with the GEB, we undertook the de- concerns the entire company and is immersed in its GRI 103-1 sign of a Sustainable Development strategy that seeks to give day-to-day activities, always seeking alignment with a new meaning to the actions of TGI under the framework of corporate strategy. The activities set out in the Social Management Plan of TGI, aim, in addition to complying with the the shared value generation, which is characterized by: legally established, to create shared value with the communities that inhabit the areas of influence » The Sustainable Development Strategy focuses on of the company, thus contributing to the viability of operations, as expressed by the Corporate the development of actions designed for the common Sustainability Policy. benefit and development of the territories that impact and the businesses of the Group and its companies. This way, Community Development is consolidated as a material issue for the organization, as it seeks to go beyond compliance with the law, generating value for its stakeholders and, at the same time, strengthening the reputation of the company. The structure of TGI’s Sustainable Development Strategy is composed of the following elements: At TGI, we are aware of the consequences that our activities have on the social environment during the stages of construction, operation and maintenance of the gas pipelines, so we are committed to act within the framework of due diligence, attending in a timely and appropriate manner the GENUINE ENGAGEMENT WITH impacts that we previously know. THE COMMUNITIES La Guajira

GRI 103-2 Sustainable Development Strategy The relationship that we manage with the » Guarantee the construction, operation and communities seeks to go in line with the maintenance of the projects of TGI S.A. ESP, principles of the Global Compact and the within the framework of the generation of Sustainable Development Goals (SDG) of shared value. Figure 24. Sustainable Development Strategy the United Nations, as TGI is recognized as a strategic ally for the solution of the social and » Timely prevent, mitigate and attend the social economic problems of the communities that risks generated by the development of the inhabit the territories where it is present. projects. To turn TGI into a sustainable business that delivers economic, environmental and social Purpose benefits in furtherance of its Core Activity The Social Management Plan establishes as » Facilitate two-way communication as a strate- a goal to comply with the requirements esta- gic mediator for the company to carry out its blished by the current regulatory framework work with the least possible impact for exter- and generate parallel actions of social res- nal stakeholders. Brand influence Operations Sustainable brand ponsibility to prevent, reduce, control and / » Manage, support and / or establish strategic or mitigate, in a timely and efficient manner, components local and regional alliances to help solve the Governance Products and services the social impacts generated by the opera- social and economic issues identified in the tion and maintenance of the infrastructure of area of influence of the pipeline, promoting the gas pipeline system by TGI. Objectives the sustainable development of the popula- 3. Progress include: 2. Territory 4. Climate 113 112 tion neighboring its operation. 1. Collaboration hub connections transformation resiliency Action focus through energy » Enhance the two-way opportunities and bene- 12.2 How is it managed? 12.2 How fits generated by the development of projects. Initiatives Initiatives Initiatives Initiatives Initiatives (Guiding concepts: innovation and collaboration)

Manage normative and regulatory changes needed as development facilitator of the four Regulatory management: points of focus that comprise the strategy

2018 Sustainable Management Report Components 12.2.1 2018 Initiatives and Projects

GRI 413 - 1

In terms of Sustainability, the restructuring of our » With programs that are sustainable over Strengthen the brand Develop sustainable business strategy with a focus on Sustainable Deve- time. Products and Brand Influence influence to achieve a product strategies aimed lopment is one of the main milestones in 2018 and, sustainable system at promoting the positive services within the framework of this new vision, we highli- » Through collaborative models with allies. impact of using natural ght some aspects that materialized that new path gas towards Community Development. » The reorientation of the strategy by understanding natural gas and biogas as opportunities to bring pro- » Implement a territorial intervention model, which is gress to the territories where we are present. based on the following principles: » Generation of dialogue scenarios with external » Generate long-term prosperity focused on stakeholders in the territories where we operate, the water-energy-food triad. in order to know the impacts that the operation or projects may generate and also address them in a » With initiatives consistent with the business. Develop actions with timely manner. Transform TGI’s TGI’s stakeholders » Empowering communities. operations by integrating to promote the use Governance Operations the entire value chain, of clean energies, thus promoting health, protect nature and resilience and society achieve community and environment progress on the basis of Building trust with the Epinayuu and blossoming transparency, integrity and leadership Ipuana indigenous communities

Our operation includes the Ballenas gas compressor station, located in the jurisdiction of the El Pájaro district, municipality of Manaure in the department of La Focus of action Guajira, where more than 578 km of the main line of the gas pipeline that transports natural gas to Barran- cabermeja in the department of Santander begin, ac- companied by 31 branches, totaling an additional 200 3. km of the gas pipeline that runs through the depart- 1. 2. Progress 4. ments of La Guajira, Cesar, Magdalena, Santander and Collaboration Territory connections Climate Norte de Santander. hub transformation through resiliancy Apart from the programs contemplated in our Social energy Management Plan, from 2011 to 2017, TGI invested a total of $ 457,068,328, which were allocated to projects with a shared value approach, resources distribu- Promote innovation Develop business capacities Strengthen the capacities Being a progress ted in risk management initiatives, education, produc- and collaboration in the aimed at the search of a of communities in the areas enabler in areas tive projects and public services. energy and different thriving business, adaptable of influence of TGI, aimed not interconnected system institutions or to change, which delivers at a sustainable economy through adequate 114 organizations for the process, economic, 115 that fosters diversification of clean energy solutions execution of common environmental and social local development dynamics, for each territory actions aimed at the generation of new jobs and benefits. sustainable business the improvement of quality economy of life, always under the basis of transparency, integrity and leadership Source: TGI S.A. ESP. CRAFTWORK OF COMMUNITIES- La Guajira

2018 Sustainable Management Report In 2018, within the framework of the development of 6. Support and strengthening of Army activities, territorial security its own and regular pipeline maintenance activities, some points to be intervened were identified, spe- » Delivery of weekly water tanker truck (6m3): $ 3,840,000 (90-day cifically between PK 00 and PK 4 + 500. However, cost) internal conflicts between the Wayuu indigenous » Delivery of daily refreshments: $30,060,000 (90-day cost) communities bordering the pipeline- the ipuana and shed, there is no doubt that situations such as the National Army, Mechanized epinayuu clans - did not allow the planned mainte- one described above, in addition to other significant » Delivery of fuel: $12,672,000 (90-day cost) Infantry Battalion No. 6, $64.147.220 nance activities. The two communities presented situations, lead us to think and give a new meaning Cartagena their conditions to carry out the maintenance acti- our relationships as a company and as a business » Delivery of autonomous reflectors: $1,765,220 vities and, in view of the high demands, the social group, to redefine our actions in our territory and our » Power Plant: $810,000 sub-directorate of TGI tried to undertake a strategy vision regarding the sustainability of both our busi- for the intercultural dialogue process that would ness and the context in which we operate. » Corrective truck maintenance: $15,000,000 allow the conclusion of social investment projects in these communities, which would also allow the nor- In this sense and with the purpose of advancing in mal development of the operation activities. the implementation of the “Territory Transformation” 7. Caprino Project with Wayuu Foundation - establish sheep and goat herds for reproduction that contribute to the establishment focus of the Sustainable Development Strategy, Epinayú clan of a breeding stock that seeks a better economic development of $150.000.000 After many weeks of dialogue and agreement with which implies: “Enhancement of the capacities of the Murralein community communities present in the areas of influence of TGI indigenous communities, through community participation in the both clans and having the support and accompani- development of sustainable productive projects. ment of local and departmental institutions, we were with a view to a sustainable economy that encoura- 8.ALogistical training support for members of the epinayú community - able to comply with the maintenance activities that ges the diversification of local development dyna- Epinayú clan $3.881.241 were necessary for the operation, but also for the sa- mics, the generation of new jobs and the improve- strengthening labor skills for the community. fety of all the parties that converge in the territory. ment of the quality of life, always on the basis of of Ipuana clan Transparency, integrity and leadership”, in 2018, we 9. Construction of community kiosk for community strengthening $33.103.347 Despite our guidelines and the effort that the com- promoted a series of actions in the department of La Alitayén Community pany makes to comply with what has been establi- Guajira, which include: Epinayú clan 10. Support of craft project strengthening - backpacks and Wayuu dolls $7.000.000 Murralein community ADI Communities, Valve 1 Massitchi (23 dwellings) Anaripa (27 dwellings) Table 38. Voluntary social investment, department of La Guajira17, 2018 Uluwalao (11 dwellings)

11. Clean energy project support: Solar Kits provision Lancelia (61 dwellings) $99.765.000 Tronjomana (19 dwellings) Action Allies Value Maspara (31 dwellings)

Epinayú clan Panerrakat (63 dwellings) Communities: Mashpa (28 dwellings) Sichen 1. Agreement: preventive maintenance of 10 water extraction windmills Takapulet TOTAL $476.860.714 with mechanical system, to be carried out in the Wayuu indigenous Winsiralamana $85.048.830 communities of the Ballena - Barrancabermeja Gas Pipeline, located in Villa Luz the El Pájaro Township of the Municipality of Manaure - Guajira. Calabacito Source: TGI S.A. ESP. Calabacito 1 Balermana Puruluain 2. Delivery of a weekly water tanker truck until the end of maintenance, Ipuana clan $4.320.000 14 m3 per week Alitayen Community Costo a 90 días 3. Delivery of threads for the community women - strengthening of the Ipuana clan $13.595.076 ipuana community handicraft project Alitayen Community 117 116 4. Strengthening sheep goat productive project - support through the Ipuana clan $10.000.000 provision of sheep (100 goats) Alitayen Community

5. Sociocultural and behavioral manual with the Wayuu people Epinayú clan

GENUINE ENGAGEMENT WITH 17For more information about social investment, refer to the annexes to this report THE COMMUNITIES La Guajira

2018 Sustainable Management Report » Sensitivity within the company and all the personnel involved as to how to relate to a collective legal subject, having a particu- Transforming territories in the Pacific- lar worldview and appropriation of its environment. Inspiration Phase Table 39. Pacific Area activities TGI and GEB support the project and participate in was sought to empower the community to intervene the bidding for Regasification Infrastructure in the and to foster collaborative relationships with allies. Colombian Pacific, because they consider it strate- The essential purpose is to be able to consolidate Actions undertaken Aliados gic to give the Pacific region and the center and sou- a genuine relationship with the territories where TGI th of the country access to an energy that is allied S.A. ESP intervenes, based on existing knowledge Ethnic communities of the rural district of La Delfina (Greater Community Embellishment activity of the rural area of with competitiveness, quality of life and progress; in and experience and thus be able to contribute to the Council of the upper middle basin of the Dagua River and the Embera Buenaventura this sense, an anticipated engagement process was development of our operations and projects in a fa- Chamí Indigenous Community) carried out as part of the sustainable development vorable environment. Support cultural activities of the strategy and its focus transforming territories in the municipalities of the AID - Celebration of Loboguerrero Community Council area of influence, allowing a broader knowledge of the day of the Loboguerrero child. the area to be intervened. Sponsorship Forum “Cali, Epicenter of Fund for the Integral Development of the Pacific Peace” Through the application of territory intervention, it Sponsorship Forum “Buenaventura es Buenaventura Inter-guild Committee The above, defined in the following aspects: Ahora”

Source: TGI S.A. ESP. 2. 4. Figure 25. Social projects RGP Definition and Development training of of strategic 5. » 600 children from 0 to 11 years benefited 1. interlocutors. alliances. Permanent Recognition of the 3. Information and presence. Loboguerrero – » Positive image projection of TGI territory. communication Dagua children’s channels. party » Genuine engagement with communities in the project area 01

Achievements Benefits and impacts: » Enhancement of community areas of interest. Settlement and Community Council Social climate » IIdentification of particular community dynamics for » References for methodological route of prior con- Volunteerism management » Dissemination of engagement strategy of each community, from the organizational structure sultation, and building a true intercultural dialogue for to embelish dwellings in TGI in base organizations and representativeness, as well as their interests and the consultation processes in the following stages of Environment Buenaventura expectations; determining the possible risks of the the project. As well as identifying other ethnic com- monitoring project to structure the action plans and intervention munities not certified by the Min of the Interior, which of each one of the stages thereof. In addition to the have no national registry yet, but this does not exclu- 02 identification of relevant information such as quality de the development of an intercultural dialogue with Community and of life, citizen security and economy, which allows all the communities present in the territories. institutional understanding the different rural dynamics of Buena- acknowledgement ventura, as well as analyzing different factors of the » Identification of strategic alliances for the imple- 119 118 living conditions of its inhabitants. mentation of social management and shared value Sponsoring of » 1300 attendees programs that respond to the real interests of the Institutional Forums » Positive image projection of TGI » Easy access to the commissions for engineering communities. “Buenaventura is activities and environmental studies to be developed now” “Cali, Peace » Community Empowerment, to be linked as part of » Strategic engagement with stakeholders in the territory, which also includes a change of po- Epicenter” sition with respect to the project, in reference to the the solutions to their needs, and understanding that refusal raised by some communities to enter the terri- companies are an ally with whom you can establish tory, due to the negative experiences of the past with synergy and efforts for them solution thereof. 03 other companies. Source: TGI S.A. ESP.

2018 Sustainable Management Report Thus, this type of actions and changes in our management, allows us to better understand the environment Other issues identified in 2018 where we operate and also to create mechanisms and response tools within the framework of sustainable management.

Within the framework of the new vision of Sustainable Development for TGI, we identified other In line with this purpose, in 2018 we also carried out: issues needed to strengthen the company’s social management and contribute to the execution of a responsible operation, in line with due diligence. Among those other actions, we highlight: Table 41. Activities carried out in 2018 Early Alert System Creation OBJECTIVE ACTIVIDADES ESPECÍFICAS

In 2018, the Social Subdirectorate made a sector com- Number of materialized social incidents (early not ma- Mapping of civil society organizations, international parative study of indicators used by other companies naged alerts) / Number of early alerts identified. organizations, financial institutions, government institutions, to analyze aspects related to social conflict. Based on private companies, among others, that can be part of the Identification of allies to structure strategic alliances and finally identify possible sites to develop a pilot project in beneficiary the results, a new indicator was proposed that allows Early warnings are defined as those latent actions that project / social diagnosis of potential communities that benefit from the project. communities of the project. greater knowledge and brings us closer to a deeper un- could materialize in a social incident. Ideally, the alerts derstanding of the environment where we conduct our identified in each operational area should be reported operations in a bidirectional manner, which means that on a monthly basis and, for each alert that is reported, there should be an identified actor (map of actors) as not only the risks that can bring the appropriate mana- Meetings with organizations identified in the mapping. gement of social conflict can be identified, but it is also well as an action plan for the alert to reduce its level possible to know those possible risks that derive from or for it to no longer being considered an alert. If the the company activities on the communities that inhabit alert is materialized in a social incident, the failure in Actions for the preparation of a draft with the evaluation of Construction of possible strategic alliances. technical, financial and social viability the territory in which we conduct operations. the implemented action plan should be reviewed in order to establish lessons learned. Preparation of a draft design with the evaluation of technical, The indicator includes: financial and social viability.

With the finalized inputs (social diagnosis and study of strategic Pilot project structuring. alliances), make adjustments to the design of the initial project. To facilitate the measurement, we create the following levels of alerts:

Table 40. Alert levels in the Early Alert System

Source: TGI S.A. ESP. LEVEL

1. Hazardous 2. Discretionary 3. Stand-by In the 2018 Strategic Plan, the Social Management area committed to go beyond what is established in the Social 12.2.2 2019 Management Plan (PGS) and to carry out actions aimed at reducing the number of social incidents that impact Complaints or disagreements Complaints or disagreements of any Challenges the development of the projects. In that regard, we plan Complaints or disagreements of any external of any external stakeholder external stakeholder (community, to work within the framework of a Gas access initiative 121 120 stakeholder (community, owner, authority, (community, owner, authority, etc.) owner, authority, etc.) manifested for communities, in order to generate shared value to the etc.) manifested verbally or in writing, 2 manifested verbally or in writing, verbally or in writing, 3 or 4 times by times by the actor. stakeholders, as established by the Sustainability Policy more than 5 times by the actor. the actor. of the company and that of Grupo Energía de Bogotá.

Source: TGI S.A. ESP.

2018 Sustainable Management Report Table 42. 2019 short, medium and long-term goals

Medium-term goals Long-term goals 12.3 How does TGI assess its Short-term goals 0 to 2 years 3 to 5 years More than 5 years. commitment vis-à-vis this issue?

Position Biogas as Transformation of territories framed in the triad Actions based on the shared value principle. an input of circular GRI 103-3 of prosperity: water, energy and food. economies. In 2018, the following monitoring mechanisms were applied to evaluate the effectiveness of Social Management programs: Hub of radical collaboration: being a catalyst for the adoption of gas technologies in industry Transition vision towards a future thinking about long- and mobility. Position TGI as a technological » Internal Control Audit » Stakeholders perception survey carried out by the term impacts. reference and an integrator between the private National Consulting Center (CNC), which measured company and the academy. » Monthly monitoring of the PGS work. the evolution of the opinion indicators through the application of a survey measuring the social impact » Verifications and follow-up of improvement ac- of the programs that make up the Social Manage- tions suggested by the SGI. Sustainability understood as an element that adds ment Plan. value to the business strategy. » Feedback from stakeholders.

Alignment of strategic sustainable development The Petitions, Complaints, Claims and Requests (PQRS) Attention System that is part of the Information and Com- approaches with strategic focuses of the Group and the companies. munication Program of the Social Management Plan, seeks to timely address those concerns or possible claims that external stakeholders have in relation to the activities carried out by TGI.

Systemic vision that allows to evaluate impacts and opportunities in the entire value chain of the businesses in which it participates. GENUINE ENGAGEMENT WITH THE COMMUNITIES La Guajira Source: TGI S.A. ESP.

122 123

2018 Sustainable Management Report Development of contractors and suppliers

$246.982 million pesos paid to suppliers and contractors

Initiatives and Projects ... 126 Suppliers...... 127 126 2018 Sustainable ManagementReport 13.2 How isitmanaged? ciples andthemechanismsto presentrelatedconcerns. and contractingparameters,reiterates theitsgoverningethicalprin- the company, wherethe company alsopublishesitsrequirements ded inTGI thespacestopresentsupplier portfoliostotheareasof ning therelationshipwiththisstakeholder group, in2018 weexpan- cation tonewcompaniesandindividualscontinuestrengthe - active baseofcontractorsandsuppliers,toexpandtheir communi- In ordertostrengthentheappropriationoftheseparameters bythe tainability Strategy. principles establishedintheStrategic SupplyModelandintheSus- performance andsocialmanagement,whicharealigned withthe terms ofcompetitiveness,quality, health,safety, environmental ppliers andcontractorstoobservethecorporaterequirements in The Strategic Supply Policy ofTGI presentstheguidelinesforsu- 13.1 Why is it relevant ket opportunities. based oncost,risk,impactandmar- ses fromitsplanningtoacquisition effectiveness ofthesupply proces- lopment Management,seekingthe sidency andtheSustainableDeve- dination withtheFinancialVicePre- manner; therefore, itworksincoor- the right time and in an appropriate tracting needsofthecompanyat tisfying theprocurementandcon- leads theactivitiesthatallowsa- pply andServicesManagement operational responsibility, theSu- In aframeworkofefficiencyand Plan (PEC). jectives oftheCorporateStrategic te significantlytoachievetheob- their goods and services, contribu- neurs andsupplierswho, through the engagement of local entrepre- for thetransportofnaturalgasand operate; wedoitthroughsolutions dynamics oftheareaswherewe tional economy and the productive In TGI, wegenerate value tothe na- » Kick-off ofthepilotprojectfordevelopment » » Useofatechnologicaltoolthatallowsthede- » Applicationoftheperformanceevaluationtool Bogotá D.C. COLLABORATOR ADMINISTRATIVE AREA The GEB andTGI held the Supplier Excellen- of economic dynamics in the regions. of economicdynamicsintheregions. merchants andcontributetothediversification of thecompanywithlocalbusinessmenand ve seekstostrengthenthedirectrelationship nable Development Management. Thisinitiati- Foundation andincoordinationwiththeSustai- siana operation,inpartnershipwiththeFundes of suppliersintheareainfluenceCu- award tothebestproviderindevelopment. In 2018,theSMEEcotechnosSAS receivedthe given torewardthebestsuppliersofyear. program oftheGEBandTGI, andawardswere this space, atalkwasgivenonthecompliance sistance of 298 suppliersandcontractors. In ce event, onDecember 10, 2018, with theas- reducing our environmental impact. reducing ourenvironmentalimpact. butes bothtotheprocesstransparencyand mat forthepresentationofoffers,whichcontri- without involvingany document inphysical for- velopment ofvirtualprocurementprocesses, bility andqualityaspects. environmental management,socialresponsi- dustrial safety, occupationalhealthandrisks, assessment in the technical, administrative, in- to suppliers,whichincludesthecompliance and Projects 2018 Initiatives cation by the Supply and Services Management. cation bytheSupplyandServicesManagement. the performance evaluation tool that are pending publi- In 2018,TGI compiledthefirstresultsofapplication Control System andtheInternalAudit Management. Presidency, theinstancesarticulatedwithInternal in additiontohavingtheContractingCommitteesof Integrated ManagementSystem (SIG)anditsindicators, The companymonitorsthesupplyactivitiesthrough vis thisissue? commitment vis-à- TGI assessits 13.3 How does out virtually. ting toolsothatthe entire selection and contracting process canbe carried the systematizationprocess,withimplementationofcross-contrac- optimization ofthecompany’s contractingprocessesandthecontinuityin the goalofestablishingaclassificationbycategoriesthatcontributesto As challengesfor2019, theSupplyandServicesManagementhassetitself Methodology Identify needs 1

Identify vendors Policies and regulation 2 Figure 28.TGIFigure Strategic SupplyModel Planning1. Organizational Organizational structure 3 Supply model Implement Axes Selection strategy Axes 2. Information Information systems

Execution comply with. comply with. the procurementprocesswhateveryprovidermust the CorporateContractingManual,whichalsodetails planning andphysicalmanagement,expressedin nomy, speed, impartiality, publicity, transparency, the principlesofequality, morality, efficiency, eco- For theselectionofsuppliers,wetake intoaccount with thecompanyforfirsttime. ganizations, establishedcommercialagreements to 414 contractors; 36% of this group, that is, 149 or- represented paymentsfor$246,982millionpesos a figurethatalsocoverstheagreementsandwhich During 2018,TGI subscribedatotalof287contracts, 102-9, 204-1GRI 13.4 Suppliers 3. Coaching and Coaching and

training Termination Execute contract Execute

5 4.

stakeholders Vendors and 6 contract Close 127 Table 43. Environmental and social criteria for measuring the performance of suppliers In the planning stage of the contracting processes, we try to identify suppliers from the areas where contract objects will eventually be executed, who will be invited to participate in the competitive processes; this action allowed us to register 80% of local suppliers in 2018, who received payments totaling $190,009 million pesos. Environmental issues Aspectos sociales These data show that 76.9% of the company’s supply budget is used for payments to local suppliers. Compliance with the environmental regulation applicable to all contract stages. No events taking place, with a negative impact in the Application of programs or operational controls in environmental social environment, which imply contract execution Figure 29. Distribution of TGI contractors and suppliers by category aspects and impacts for the development of contract activities. affectation. Periodical training (minimum once per month) to personnel Evidence of regional labor hiring. assigned to service provision in environmental aspects and impacts associated with contract development. Compliance with obligations acquired with subcontractors. 19% Other obligations established in M-ASI-002 HSEQ and Social manual Assets and for Contractors Rev. 8 available at: https://www.tgi.com.co/grupos- equipment de-interes/informacion-proveedores

18% Works and Source: TGI S.A. ESP. maintenance 63% Works and maintenance

As of December 31, 2018, total of 498 suppliers were performance-assessed to deter- Figure 30. Distribution of the payment made to TGI suppliers mine compliance with Environmental Manage- ment, which is equivalent to 78% of the total of the suppliers that were contracted by TGI after the implementation of the Performance Eva- luation Instructions for Suppliers - Contractors in March 2017. 23% As an organization attached to the United Na- Foreign tions Global Compact, Grupo Energía Bogotá and its subsidiaries verify the observance of 77% the 10 principles regarding respect for human rights, labor practices, environmental impacts Local WILDLIFE IN TGI INFRASTRUCTURE La Jagua del Pilar, Cesar and the fight against corruption; this commitment demands our requesting contractors Source: TGI S.A. ESP. to express their knowledge and acceptance Suppliers that obtain a poor rating in these aspects will not be inclu- of the parameters established by the Global ded in processes that require an invitation, in accordance with the Compact in furtherance of contracting proces- convenience and risk analysis carried out by TGI. If the score range ses, and after signing a contract. is at a regular level, companies and individuals will not be invited to In this same sense, in 2018 there were no participate in direct offer requests. Environmental and social criteria 129 128 complaints by workers of contractors and sub- 308-1, 407-1, 414-1 Elements such as the performance rating can be used as an evalua- contractors regarding violations or limitations tion criterion or tie-breaker criteria, as decided and specified in the to exercise their right of association, freedom The company does not include an evaluation of environmental and social offers contracting process documents. of association and collective bargaining. within its selection processes; however, aspects of this type are taken into account for the renewal of the contracts of the suppliers, according to the results obtained according to the qualified aspects in the performance evaluation. The- se criteria are: 18The figure corresponds to the contracts that were evaluated in their entirety (498 of 635) as of December 31, 2018.

2018 Sustainable Management Report Environmental Responsibility

24,6% was the percentage of reduction in energy consumption compared to 2017

Environmental Management ...... 132 Programs and initiatives..137 132 2018 Sustainable ManagementReport Source: TGI S.A. ESP. Climate Change andEnergyEfficiency Monthly continuous follow-up of field emissions to develop the greenhouse gasreport. sources andverification of Identification of emission Identification ofemission Awareness spaces for Management Program 14.1 Why is it relevant? carbon footprint. GRI 103-1GRI port activity. maximize thepositiveaspectsoftrans- stakeholders andidentifyopportunitiesto where webuildtrustingrelationshipswith ciency andgenerationofsustainablevalue, framework ofregulatorycompliance, effi- allowed ustoundertake ouroperationina tuations intheprovisionofservicehas This focusontimelydetectionofrisksi- of theCorporateStrategic Plan(PEC). mitments andachievementoftheobjectives operation, compliancewithcontractualcom- ties, inordertoensuretheavailabilityof necessary, compensate affected communi- the processespresentinganomaliesand,if activities, mitigateadverseeffects,correct negative consequencesofthecompany’s vironment allowsustopreventthemost generated bytheTGI operationontheen- The strategicmanagementoftheimpacts collaborators. Table 44.Environmental strategies developed by TGI in2018 proyecto de Reforestación, por certificado Compensación deemisionesatravés del corresponding to 12thousandtons. habitat banks,suchasecosystemic use ofsoilwithcommunities and support alternativessupport ofalternate Evaluation ofoffsetoptionsto Acquisition ofcarboncredits service projects. ICONTEC TGI in2018 developed by strategies Environmental re andsoundpressurelevels. CO2 andmethaneemissionsintotheatmosphe- mitigation againstourmostsignificantimpacts: of strategiesaimedatensuringthehierarchy lines, during2018weemphasizedtheexecution ment Policy oftheGEB;basedontheseguide- the OccupationalHealth,SafetyandEnviron- impacts ontheenvironmentinTGI isguidedby and theenvironment,managementof zero accidentsandnoeffectonpeople, assets To ensurethedevelopmentofanoperationwith managed? 14.2 How isit GRI 103-2, 102-11GRI implementation ofoffseting impact characterization and with involuntary emissions of themitigationhierarchy Strategy design,together and theimplementation estimation of emissions estimation ofemissions actions, environmental to outin2019 carry the through engagement Environmental noise management pilots. protection forprogress” Catalog “Bannedspecies, ORNITHOCEPHALUS 2018 wemayhighlight: negative effect.Amongtheactionsimplementedin te monitoringofoperations,inordertoavoidany of ouractivitiesontheenvironmentandadequa- tant achievementsinthemanagementofimpact Thanks tothesestrategies,weaccomplishedimpor- » ImplementationoftheEnvironmentalRequire- » Standardization oftheenvironmentalmanage- » Updating of contingency plans, now risk mana- » UpdatingofallEnvironmentalManagementPlans » Determinationofthescope, technicalandecono- requirements assignedtotheirmanagement. for alltheemployeesofcompanywhohave tal thatisontheintranetasanelectronicservice pany by the environmental authorities. It is a por- monitor the requirements imposed on the comments Attention System (SARA) tocontroland tenance anddismantlingphases. stations, duringtheconstruction,operation,main- TGI networkofgaspipelinesandcompression ment measuresfortheexpansionprojectsof regulator. gement plans,inlinewith the requirementof authority. thening therelationshipwithenvironmental compliance withcurrentregulationsandstreng- (PMA) oftheoperationcenters,guaranteeing tivities. are allocatedtoconservationandrestorationac- mechanism throughwhichareasoftheterritory mic feasibilityofhabitatbanksasacompensation Management 14.4. Environmental as follows: cubic metersofwatercollectedduring2018,distributed underground sourceswerecollected,foratotalof5,156 blic utilities and 2,077 cubic meters of water captured by In 2018, a total of 3,079 cubic meters of water from pu- Water rating Committee. ning areaandtheBoardofDirectors,throughOpe- and indicatorsofthemanagementtoStrategic Plan- the environmentalsub-directoratereports progress Likewise, aspartofthefollow-uptoPECobjectives, the InternalAudit Managementandexternalverifiers. tools formeasuringprogress,whichareappliedbyboth the ISO14001and50001standards,whichincludes System thatrespondstotheparametersestablishedby We haveanEnvironmentalandEnergyManagement 103-3GRI this issue? commitment vis-à-vis TGI assessits 14.3 How does GRI 303-1GRI 133 Table 46. Energy consumption from non-renewable Table 45. Distribution of centers according to water collection method sources of TGI in 2018 The total energy consumption of the organization in 2018 was Source Total Unit of Measure Water from the aqueduct Water taken from underground sources 1.597.677,08 Barrancabermeja Natural Gas 1.587.595,16 Gigajoules Gigajoules Gualanday Source TGI S.A. ESP. Cogua Paipa In addition to monitoring the rational use of energy, in TGI we direct the actions of the organization to improve Valledupar energy performance without this implying an impact on the levels of productivity of the company or the quality of Villavicencio the service, within a framework of regulatory compliance and responsible management in environmental and social Manizales Hatonuevo matters. Buga Mariquita Miraflores Within the scope of the SGE based on ISO 50001 we keep the following offices certified. Norean Padua Paratebueno Figure 32. Headquarters of TGI within the scope of ISO 50001 through the SGE Villavicencio Sabana Bogotá Administrative Headquarters Source: TGI S.A. ESP. ECG Mariquita ECG Sabana Bogotá

Figure 31. Distribution of water collected by TGI source in 2018

ECG ECG Puente ECG Padua Miraflores21 Guillermo21 36% Water collected by underground source Source: TGI S.A. ESP.

64% Water collected by aqueduct 14.5.1. Biodiversity

Source: TGI S.A. ESP. GRI 304-2 / ODS 15

In TGI, we aim to achieve an adequa- In 2018, the management of environmental compensation obligations fo- te management of biodiversity and its cused on the recovery and protection of areas located in strategic zones in The consumption of electrical power within ecosystem services, for the wellbeing order to preserve the water resource and maintain the biological corridors the company in 2018 was 10,081,918 Giga- of communities, the conservation and that serve as habitat for wildlife species such as the spectacled bear; In Power 135 134 joules, a figure that represents a reduction of recovery of ecosystems through the ma- conjunction with the Regional Autonomous Corporation of Chivor (COR- 24.6% compared to 13,371.82 Gigajoules re- nagement of mandatory environmental POCHIVOR), priority was given to properties in moorland areas, as they are GRI 302-1 19 gistered in 2017 . investments (compensation and invest- strategic ecosystems of national importance, areas of water springs and ment of 1%) and the dialogue on matters water supply areas for neighboring communities. of environmental protection with the stakeholders in the territories.

19 The amount of electrical energy consumed by TGI is taken from the invoices issued by the power companies and corroborated with the 20 daily reading made from the meter. The unit of measurement recorded in the invoices is in kWh (kilowatt hour) and the conversion factor Gigajoules is 0.0036 Gigajoules. TGI does not use renewable sources in relation to energy consumption and the management of the used is from kWh to Gigajoules is 0.0036 Gigajoules. TGI does not use renewable sources in relation to energy consumption and the ma- company is not related to energy generation or trading. nagement of the company is not related to energy generation or trading. 21ECG Miraflores Available from 2019

2018 Sustainable Management Report Emissions

GRI 305-1, 305-2, 305-3 We developed the project to purchase properties in hierarchy, the conservation of biodiversity and its the Mamapacha and Bijagual moorlands, whereby ecosystem services and the agenda for the construc- One of the most important challenges we have as- gases emitted, measured in CO2 equivalent mass by 600 hectares were acquired that will be used for tion of social peace. sumed, consistent with the purpose of properly ma- direct or indirect effect of the organization. forest and environmental reserves. With the protec- naging the impacts of our operation, is to identify, Also, in the area we develop protection actions for tion of this area, the availability of water resources quantify and offset our emissions. To achieve this, we From these data we build the Report of Greenhouse banned species, through the implementation and is guaranteed, the polluting actions are counteracted worked in 2018 in the design of a strategy for the ma- Gases for the period from January to December 2018, execution of the compensation program for lifting at the source and the subsistence of flora and fauna nagement of involuntary emissions and environmen- a document that will be verified by an external entity and transfer of these species, developing actions species such as the spectacled bear (Tremarctos or- tal noise, framed in the mitigation hierarchy. in accordance with the aforementioned standard, in natus), spoon (Myrsine guianensis), tinajo (Cuniculus of floristic enrichment of 8 ha with species of eco- order to obtain the corresponding certification. taczanowskii), clogs (Nasua nasua), deer (Odocoileus logical importance in forests that offer water servi- During the period covered by this report, and in virginianus), yellow-bellied parakeet (Pyrrhura callip- ces for the municipalities of Páez, Zetaquira, Puente compliance with norm NTC-ISO 14064-1:2006, we In 2018, a total of 109,419.28 tons of CO2 were gene- tera), frailejón (Espeletia sp., And Espeletia uribei, Nacional, Jesenano and Florián, establishment and monitored the emissions generated by our activities rated, taking into account the emissions of scope 1, Espeletiopsis corymbosa), chite (Hypericum mexi- maintenance of fern (Cyathea divergens) and oak through a monthly report prepared by each opera- scope 2 and scope 3. canum), rosemary (Diplostephium rosmarinifolium). (Quercus humboltii), study of flora and fauna in the tional center, quantifying the amount of greenhouse Bijagual and Merchán sub-region, training in banned It is important to mention that the actions that histo- species directed to women in the area of influence of rically have been undertaken to comply with these the pipeline, construction of 10 school nurseries and obligations have been oriented to the protective re- study of the banned flora in the areas of influence Figure 33. Emissions forestation and the purchase of properties. These of the gas pipeline, for the preparation of catalogs, actions are being reconsidered by more cost-effec- brochures and booklets. tive measures, within the framework of the mitigation

108.820,90 In 2018, we promoted the elaboration of the “Spe- 238,98 tons of CO2 in 359,4 tons of CO2 in cies in closed areas, protection for progress” catalog tons of CO2 in scope 1 scope 2 scope 3 Protected or as part of the compensation program for the remo- (direct emissions) (Other indirect emissions) val of tree and epiphytic banned species, which is (indirect emissions) restored habitats aimed at joining efforts for the care and conservation of natural resources in Colombia. This project was developed in the departments of Casanare, Boyacá and Santander and included the participation of environmental authorities, educational institutions and GRI 304-3/ ODS 15 neighboring communities. Source: TGI S.A. ESP. TGI trained its employees in the Climate Change and Energy Efficiency Program, based on the Green House Gas Protocol and The Climate Reality Project, in order to identify opportunities for improvement in the mitigation of climate change and environmental awareness. In 2018, 7 workshops were held with the participation of 77 collaborators in Villavicencio, Manizales, Miraflores, Ibague, Paipa, Barrancabermeja and Buga.

137 136 14.5 2018 Programs and initiatives

In order to implement a process to manage the impacts gene- CATALOG Hierarchy of rated by our infrastructure during all stages of the business cy- “Banned species, cle, in 2018 we focused on promoting this project composed of protection for progress” Mitigation Project a sequence of phases that evaluate the characteristics of the effects generated and, through established criteria, guide the GRI 102-11 action plan.

2018 Sustainable Management Report Figure 34. Phases in the Hierarchy of Mitigation Project Management of Environmental Noise

Due to the nature of our activities, we Faced with this scenario, we performed a diagnosis of the environmen- generate levels of sound pressure tal noise in the operation, in which we classified the venues according COMPENSATION that have influenced the relations- to the state of the operation and the legal concerns and resources pre- hip with the communities living in the sented by the communities and / or local authorities regarding noise. CORRECT areas surrounding some operation Based on the application of the parameters of the mitigation hierarchy, MITIGATION centers. we generated a joint management strategy led by the Sustainable De- velopment Management. PREVENTION Measures taken to offset any residual adverse Activities aimed at effect, after the full improving degraded or implementation of the Implementation of Table 47. Diagnosis of environmental noise in the operation removed ecosystems three prior steps actions to reduce the Adoption of measures after the exposure to duration, intensity and/or to avoid impacts in impacts that cannot be dimension of the impacts the operation from completely avoided or that cannot be completely Scenario 1 Scenario 2 Scenario 3 the planning phase minimized. avoided. of expansion or intervention projects. Stations and active operational Stations and operational centers Stations and active operational centers centers in which NO type of that are NOT active, where NO type in which some type of resource has resource has been formalized of resource has been formalized by been formalized by the community or by the community or by an the community or by an authority Source: TGI S.A. ESP. by an authority regarding noise. authority regarding noise. regarding noise. During the year, the following actions were carried out, taking into account the stages of our business cycle: construction, operation and dismantling. Classification criteria Hatonuevo Jagua del Pilar Vasconia Curumaní Mariquita Figure 35. Actions executed according to the business cycle Barrancabermeja Sabana Paratebueno Casacará Puente Guillermo

centers Norean Padua San Alberto Stations and Miraflores Villavicencio Cogua PILOT: Padua soundproofing. Definition of an Environmental Standardization Design of a Risk PILOT: Purchase of properties in Puente Identification of Follow-up and of environmental Management Plan Guillermo. environmental impacts Monitoring plan managemet measures (PSM) Viability of sustainable use projects. (PMA) Social engagement strategy. Social engagement strategy. Family relocation program.

•Social engagement strategy.

Source: TGI S.A. ESP. and intervention Actions 139 138

The goal of this initiative, in 2019, is to advance in the implementation of the plans and ensure the application of the parameters of the mitigation hierarchy in projects and operations.

Source: TGI S.A. ESP.

2018 Sustainable Management Report » Noise reduction. In 2018, the Environmental Sub-Directora- » Contribute in the generation of continuous green te analyzed the proposal for the sowing mass that favors biodiversity. of live barriers and the implementation of sustainable production systems in the TGI » Serve as biological connector with all green areas. stations, with the participation of the communities in the area of influence. » Increase tree density by improving the environmental quality of the environment. This strategy, in addition to responding to the characteristics and phases of the » Generate zones of permeability and infiltration of company’s mitigation hierarchy, contribu- rainwater. tes to the strengthening of relations with the community and generates benefits, » Improve the environment landscape. including, among others: » Camouflage structures.

» Retain particulate material from fixed and mobile sources. With the mitigation hierarchy project, in En 2019 Residues we will advance in the implementation of the plans GRI 306-2 and in the application of the parameters in the projects and In 2018, the company generated a total of 629.41 tons of waste, classified according to the disposal operations. method and according to their characteristics as “hazardous” and “non-hazardous”. This year, 93% of the total waste generated was classified as “hazardous”, while the remaining 7% corresponds to “non-hazardous” waste.

Table 48. Total waste generated by TGI in 2018 by disposal method and type of waste

Non-hazardous Disposal method Hazardous residues residues

Safety landfill 11.57 tons -

Unclassified 579 tons -

Recycling - 30.46 tons

140 Landfill - 12.67 tons 141

Source: TGI S.A. ESP.

2018 Sustainable Management Report GRI content index and data tables GRI Content Index GRI 102-55

Omissions / GRI standard Content Location / Direct Response ODS Omissions / Observations GRI standard Content Location / Direct Response ODS Observations 3.2I nternational Gas Transporter 102-1 Company Name P.1 1 102-14 Declaration of senior 3, 7, 11, 16 executives responsible for P. 7 y 17 102-2 Activities, brands, 3.2 International Gas Transporter GRI 102: General Contents 2016 decision making products and services P.1 1 2. Strategy 102-15 Main impacts, risks and 3.2 International Gas Transporter P. 31 102-3 Location of the venue opportunities P.1 1

102-16 Values, principles, 3.2 International Gas Transporter standards and norms of P. 45 16 P.1 1 GRI 102: General Contents 2016 conduct 102-4 Location of operations 3.2.2 Gas pipeline network and 3. Ethics and integrity transport capacity P. 13 102-17 Advisory mechanisms P. 46 16 and ethical concerns TGI is a mixed company, 102-5 Ownership and legal incorporated as a stock company, in form accordance with the provisions of Law 142 of 1994. 102-40 List of stakeholders P. 34

3.2. Transportadora de Gas 102-6 Markets served GRI 102: General Contents 2016 Internacional p. 11 and 12 102-41 Collective bargaining P. 96 1. Company profile agreements

GRI 102: General Contents 2016 Total number of collaborators: p. 60 102-42 Identification and 5. Participation of stakeholders P. 34 Total number of operations: p.14 selection of stakeholders 102-7 Company Size 7 Y 11 Income: p. 40 102-43 Approach for Products and services provided: the participation of the P. 34 p. 13 stakeholders

102-44 Key issues and P. 34 102-8 Information about concerns raised P. 94 employees and other workers

145 144 102-9 Supply chain P. 127

This report does not present 102-10 Significant changes significant changes

2018 Sustainable Management Report Omissions / Material Subjects GRI standard Content Location / Direct Response ODS Observations Corporate governance

102-45 Entities included in P. 16 Omissions / the Financial Statements GRI standard Content Location / Direct Response ODS Observations

102-46 Definition of the contents of the reports and P. 36 103-1 Explanation of the the coverage of the subject material topic and its P. 40 16 Coverages

102-47 List of relevant topics P. 37 GRI 103: 2016 Management 103-2 The management P. 40 16 approach approach and its components

102-48 Information re- 103-3 Evaluation of the statement P. 42 16 management approach

102-49 Reporting changes 102-18 Corporate governance P. 42 structure

102-50 Period covered by the P. 16 102-22 Composition of the GRI 102: General Contents 2016 report highest governance body and P. 42 GRI 102: General Contents 2016 its committees 6. Practices for the preparation of reports 4. Governance 102-51 Date of last report P. 16 102-23 President of the P. 42 highest governing body

102-52 Reporting cycle P. 16 102-34 Nature and total P. 45 number of critical concerns

102-53 Contact point for P. 17 205-1 Operations evaluated questions about the report P. 46 16 for risks related to corruption

102-54 Declaration of report preparation in accordance P. 16 205-2 Communication and with the GRI Standards GRI 205: 2016 Anti-Corruption training on anti-corruption P. 47 16 policies and procedures

205-3 Confirmed cases of 102-55 GRI content index P. 144 During 2018 there were no cases of corruption and measures 16 corruption. taken 147 146 102-56 External verification P. 17

2018 Sustainable Management Report Growth and market development

Omissions / Economic value generated GRI standard Content Location / Direct Response ODS Observations

Omissions / GRI standard Content Location / Direct Response ODS Observations 103-1 Explanation of the material topic and its P. 55 Coverages 103-1 Explanation of the material topic and its P. 56 GRI 103: 2016 Management 103-2 The management Coverages P. 84 approach approach and its components

GRI 103: 2016 Management 103-2 The management P. 56 approach approach and its components 103-3 Evaluation of the P. 87 management approach

103-3 Evaluation of the P. 57 management approach Customer perception survey P. 88

201-1 Direct economic value P. 60 generated and distributed Team with talent, motivation and results-driven GRI 201: 2016 Economic performance 201-2 Financial implications and other risks and GRI standard Content Page / Response Omission ODS P. 64 opportunities arising from climate change 103-1 Explanation of the Operations with integrity, reliability and efficiency material topic and its P. 92 8 Coverages

Omissions / GRI standard Content Location / Direct Response ODS GRI 103: 2016 Management 103-2 The management Observations P. 92 8 approach approach and its components

103-1 Explanation of the material topic and its P. 68 103-3 Evaluation of the P. 93 8 Coverages management approach

GRI 103: 2016 Management 103-2 The management Se reportan los P. 68 approach approach and its components datos desglosados por edad y género 401- 1 New employee hiring pero no están P. 95 8 and staff turnover disponibles las 103-3 Evaluation of the P. 70 tasas desglosadas, management approach solo las tasas totales.

GRI 401: Employment 2016 401-2 Benefits for full-time employees, which are not P. 97 8 149 148 granted to part-time or temporary employees

401-3 Parental permission P. 98 8

2018 Sustainable Management Report Omisiones / Estándar GRI3 Contenido Ubicación / Respuesta Directa ODS Observaciones 404-1 Average hours of training per year per P. 100 8 employee 304-2 Significant impacts of activities, products and P. 135 15 GRI 404: Training and teaching services on biodiversity 2016 404-3 Percentage of GRI 304: 2016 Biodiversity employees who receive 304-3 Protected or restored periodic performance and P. 101 8 P. 136 15 professional development habitats evaluations * Considering the 403-1 Representación de economic purpose los trabajadores en comités and the nature of P. 106 8 formales trabajador empresa the operation of de salud y seguridad TGI, the company does not produce The contractor biogenic emissions data are presented by company and * The source of the not by region due emission factors to the impossibility GRI 403: Safety and occupational 403-1 Representation of and estimation of determining health workers in formal committees methodologies P.107 the indicator by 8 worker health and safety were: -FECOC 2016. zones or regions, 2016 company Emission factors given the monthly for Colombian employee turnover Fuels. Energy according to the 305-1 Other direct GHG Mining Planning P. 137 needs or projects emissions (scope 1) Unit. Ministry of in execution. Mines

403-4 Health and safety and Energy. issues addressed in formal P. 106 8 Colombia -GHG agreements with unions Protocol 2017. Emission Factors from Cross-Sector Environmental responsibility Tools, http:// ghgprotocol.org/ GRI 305: Emissions calculationtools. GRI standard Content Page / Response Omission ODS 2016 2006 IPCC Guidelines for National 103-1 Explanation of the Greenhouse Gas material topic and its P. 132 Inventories. Coverages The source of the emission factors GRI 103: 2016 Management 103-2 The management and estimation P. 132 approach approach and its components methodologies were: [1] Source: UPME 2018. Variables of 103-3 Evaluation of the P. 133 Generation and management approach 305-2 Indirect GHG emissions of the Colombian when generating energy P. 137 Electricity Market. (scope 2) Electric Power 302-1 Energy consumption Sub-Directorate, GRI 302: Energy 2016 P. 134 within the Company Generation Group. [2] US Department 151 150 of Energy, Council for Renewable 303-1 Water extraction by GRI 303: Water 2016 P. 133 Energy Education source and Worldwide Institute

305-3 Other indirect GHG P. 137 emissions (scope 3)

2018 Sustainable Management Report "The disposal method was decided by 306-2 Waste by type and GRI 306: 2016 effluents and waste P. 140 information method of disposal provided by the waste disposal contractor" TGI did not receive sanctions or non- monetary fines for 307-1 Failure to comply with GRI 307: 2016 Environmental non-compliance environmental legislation compliance with laws or and regulations environmental regulations during CLASSIFICATION SHIPPER CITY 2018 7 A&A Energy SAS Bogotá D.C. Territory transformation 8 Alcanos De Colombia S.A. ESP Neiva - Huila

GRI standard Content Page / Response Omission ODS 9 Efigas S.A ESP Manizales - Caldas

103-1 Explanation of the 10 Espigas S.A. ESP Floridablanca - Santander material topic and its P. 112 Coverages 11 Gas Natural Del Cesar ESP - Gasnacer Bucaramanga - Santander

GRI 103: 2016 Management 103-2 The management 12 Gas Natural Del Oriente S.A. ESP - Gasoriente S.A. ESP Bucaramanga - Santander P. 112 approach approach and its components 13 Gases De La Guajira S.A. Riohacha - La Guajira

103-3 Evaluation of the P. 123 14 Gases Del Caribe S.A. ESP Barranquilla - Atlántico management approach

15 Gases Del Cusiana S.A. ESP Yopal - Casanare 413 - 1 Operations with Trader - Distributor participation of the GRI 413: local communities 2016 local community, impact P. 115 16 Hega S.A. ESP Bucaramanga - Santander evaluations and development programs 17 Ingenieria Y Servicios S.A. ESP Bucaramanga - Santander

18 Metrogas De Colombia S.A E.S.P Floridablanca - Santander Attached table 1. TGI 2018 customers 19 Op&S Construcciones S.A. ESP Ibagué - Tolima 20 Promesa S.A. ESP Bucaramanga - Santander

CLASSIFICATION SHIPPER CITY 21 Proviservicios S.A. ESP Bucaramanga - Santander

1 Chipalo Energy Trading SAS ESP Barranquilla - Atlántico 22 Servigas S.A. ESP Neiva - Huila

23 Servingas S.A. ESP Ibagué - Tolima 2 Dinagas S.A. ESP Bogotá D.C. 24 Surgas S.A. ESP Neiva - Huila 153 152 3 Emgesa S.A. ESP Bogotá D.C. Trader

4 Kronos Energy S.A. ESP Bogotá D.C.

5 Simer Colombia SAS ESP Bucaramanga-Santander

6 Turgas S.A. ESP Bogotá D.C.

2018 Sustainable Management Report CLASSIFICATION SHIPPER CITY

25 Madigas Ingenieros S.A. ESP Acacias-Meta

26 Empresa De Energía De Casanare – Enerca S.A. ESP Yopal - Casanare Attached table 2. 27 Gas Natural S.A. ESP Bogotá D.C. Trader - Distributor - VNG Voluntary social investment 2018 28 Gases De Occidente S.A. ESP Cali - Valle del Cauca

29 Gases Del Llano S.A. Esp- Llanogas S.A ESP Villavicencio - Meta

30 GNI Gas Natural Industrial De Colombia S.A. ESP Bogotá D.C. MUNICIPALITY CONCEPT COP VALUE USD VALUE 31 Trader - Distributor - Thermal Empresas Públicas De Medellín E.S.P. Medellín - Antioquia

Comercializadora Energética del Oriente S.A. ESP - Mayor of San Alberto Municipal Art Workshops 10.000.000 3.510,75 32 Bucaramanga - Santander Enercor S.A. ESP Municipality of Albania, Trader - VNG Cultural recreational project 7.602.800 2.593,76 33 MC2 SAS ESP Bogotá D.C. Santander

34 Plexa SAS ESP Bogotá D.C. Municipality of Tunungua School adaptation material 40.000.000 14.172,49

35 Isagen S.A. ESP Medellín - Antioquia Maintenance materials for the Briceño Municipality of Briceño 37.208.586 12.391,87 Trader - Thermal road 36 Termoemcali S.A. ESP Palmira - Valle Municipality of Herveo Fire-Fighter equipment provision 45.000.000 16.504,86 37 Producer - Trader - Thermal Ecopetrol S.A. Bogotá D.C. Municipality of Manaure Maintenance 10 Windmills 120.713.005 42.379,52 38 Cogasen SAS ESP Bogotá D.C. Several Municipalities - Maloka Corporation of Maloka Strategy with Communities 967.231.507 42.379,52 39 Combustibles y Gases S.A. Armero Guayabal - Tolima Science

40 VNG Compañía De Combustibles De Colombia Ltda. Bogotá D.C. Municipality of La Belleza Culvert Construction in La Belleza 50.000.000 16.410,88

41 Organización Terpel S.A. Bogotá D.C. Municipality of Yondo Gasification due to irregular connections 102.154.418 33.426,72

42 Terpel Energía SAS ESP Barranquilla - Atlántico Municipality of Bogotá Tominé Park Project 1.945.917.416 675.748,03

43 Cenit Transporte y Logísitica De Hidrocarburos SAS Bogotá D.C. Maintenance of the Robles Rural District Robles Rural District 50.000.000 17.434,12 aqueduct – Association of Aqueduct Users 44 Industrial Fertilizantes Colombianos S.A. - Ferticol Barrancabermeja - Santander Asociación de Mujeres Productive Project Materials 159.993.858 55.194,13 Emprendedoras - ASOMEG 155 154 45 Mansarovar Energy Colombia Ltda. Bogotá D.C. Service center - 48 Provision of Equipment for Fire-fighters 40.000.000 14.670,98 municipalities 46 Producer - Industrial Perenco Colombia Limited Bogotá D.C.

Total 3.575.821.590 946.818 47 Thermal Termovalle SAS ESP Palmira - Valle

2018 Sustainable Management Report Attached tables 3. Collaborator indicators, health and safety Accident by region among direct TGI collaborators Total number of collaborators Base: districts / station / administrative head- Men Women by region quarters

Bogotá 1

2018 Distrito VII - Manizales 3 Sede M H Total Distrito II - Gualanday 1 Bogotá 74 132 206 Barrancabermeja 3 23 26 ECG Padua 1 Buga 1 8 9

Casacará 8 8 Distrito III - Cogua 1 Cogua 1 6 7 Cota 1 2 3 ECG Puente Guillermo 1 Curumaní 5 5 Gualanday 3 7 10 ECG Jagua del Pilar 1 Hatonuevo 8 8 Distrito I - Barrancabermeja 1 Jagua 13 13 Manizales 2 8 10 ECG Paratebueno 1 Mariquita 1 11 12 Norean 10 10 ECG San Alberto 1 Padua 7 7

Paipa 1 12 13 ECG Vasconia 1 Paratebueno 1 11 12 Puente Guillermo 1 10 11 TOTAL 12 1 Sabana 1 1 San Alberto 4 4 Valledupar 2 8 10 Source: TGI S.A. ESP. 157 156 Vasconia 9 9 Villavicencio 4 17 21 Totales 96 328 424

Source: TGI S.A. ESP.

2018 Sustainable Management Report Contractor Company Men Women

INSURCOL LTDA 1 MONTAJES JM 4 CONFIPETROL SAS 1 MONTINPETROL 3 Accident rate CONSORCIO RIP 2 ISMOCOL 5 by company SEGURIDAD ONCOR 1 MTI THOMAS 1 among ELITE LTDA 1 1 contractors . CENTRAL 2 EMMIS 1 APPLUS 1 INEMEC LTDA 1 FIDELITY 1 INERCO 1 TOTAL 27 0

Source: TGI S.A. ESP.

CONTRACTOR COMPANY LOST DAYS

INSURCOL LTDA 0 MONTAJES JM 0 CONFIPETROL SAS 0 MONTINPETROL 69 CONSORCIO RIP 33 Days lost by ISMOCOL 8 SEGURIDAD ONCOR 2 company among MTI THOMAS 3 CHAIR COMMITTEE TGI 2018 contractors ELITE LTDA 5 CENTRAL 3 EMMIS 0 See this report and its annexes in www.tgi.com.co APPLUS 21

INEMEC LTDA 0 159 158 FIDELITY 15 INERCO 0 TOTAL 159

1These data are presented by company due to the impossibility of determining the indicator by zones or regions, given the monthly employee turnover according to the needs or projects in execution.

2018 Sustainable Management Report Table Index Table 29. Table 28. Table 27. Table 26. Table 25. Table 24. Table 23. Table 22. Table 21. Table 20. Table 19. Table 18. Table 17. Table 16. Table 15. Table 14. Table 13. Table 12. Table 11. Table 10. Table 9. Table 8. Table 7. Table 6. Table 5. Table 4. Table 3. Table 2. Table 1. Voluntary socialbenefitsforfull-time employees Mandatory socialbenefitsforfull-timeemployees Direct employeescoveredbycollectiveagreements Turnover andhiringrates Total numberofwithdrawals. Total numberofnewhires. Total numberofcollaboratorsbyage Number ofemployeesbygenderandjobcategory Quality perceptionscale TGI Results oftheperceptionsurveyonrelationshipclientswith Phases oftheMaturationandValue CreationModel 2018 ProductDescription Activities ofotherinspections Strategic objectivefollow-upofinfrastructureintegrity Average monthlyavailabilityofgaspipelines’ transportcapacity Investment inemergencyattentionworks Variable chargesinUSD Direct economicvaluegeneratedanddistributed Profit and Loss Statement Actions tomitigatestrategicrisksofTGI in2018 department. Employees trainedinanticorruptionproceduresandpoliciesby category Employees trainedinanti-corruptionpoliciesandproceduresbyjob In-house contractorstrainedbydepartment Main concernsreportedtotheBoard TGI BoardofDirectorsComposition Materiality for theTGI S.A.ESP Engagement mechanisms,frequencyofcontactandrelevantissues TGI S.A.ESPStakeholders Sectors servedbyTGI in2018 97 97 96 96 95 95 95 95 89 88 80 78 72 72 71 65 62 60 58 51 49 48 48 45 43 37 35 34 22 Table 48. Table 47. Table 46. Table 45. Table 44. Table 43. Table 42. Table 41. Table 40. Table 39. Table 38. Table 37. Table 36. Table 35. Table 34. Table 33. Table 32. Table 31. Table 30. waste Total wastegeneratedbyTGI in2018bydisposalmethodandtypeof Diagnosis ofenvironmentalnoiseintheoperation Energy consumptionfromnon-renewablesourcesofTGI in2018 Distribution ofcentersaccordingtowatercollectionmethod Environmental strategiesdevelopedbyTGI in2018 suppliers Environmental andsocialcriteriaformeasuringtheperformanceof 2019 short,mediumandlong-termgoals Activities carriedoutin2018 Alert levelsintheEarlySystem Pacific Areaactivities Voluntary socialinvestment,departmentofLa Guajira2018 Number ofworkaccidentsdirectcollaboratorsbygender Absenteeism distributionofTGI bycategoryandgender Accident ratedistributionofTGI bycategoryandgender Safety Committees Distribution oftheemployeesrepresentedinTGI Healthand Percentage ofemployeesevaluatedbygenderandjobcategory Average traininghoursperemployee Maternity andpaternityleave Use ofbenefits 149 139 135 134 132 129 122 121 120 119 117 109 108 107 106 101 100 98 98 Figure Index Figure 29.Figure 28. Figure 27.Figure 26. Figure 25. Figure 24. Figure 23. Figure 22. Figure 21. Figure 20. Figure 19.Figure 18. Figure 17.Figure 16. Figure 15. Figure 14. Figure 13. Figure 12. Figure 11. Figure 10. Figure 9.Figure 8. Figure 7.Figure 6. Figure 5. Figure 4. Figure 3. Figure 2. Figure 1. Figure Distribution ofwatercollectedbyTGI sourcein2018 Distribution ofthepaymentmadetoTGI suppliers Distribution ofTGI contractorsandsuppliersbycategory TGI Strategic SupplyModel Social projectsRGP Sustainable DevelopmentStrategy Number oftrainedemployeesandtraininghours Total numberofcollaboratorsbygender Projects Managed Coordination AgreementsSigned Graph oftheinfrastructureareainspected2018 Average monthlyavailabilityofgaspipelines’ transportcapacity Rating toTGI byMoody’s, FitchandS&P Operational Income, 2010-2018 Direct economicvaluegeneratedanddistributed Growth inEBITDA, 2010-2018 Mobility inColombiabytypeoffuel volution ofthefuelsusedinindustrialproductionColombia World demandfornaturalgas Global naturalgasproduction Transportation ofliquefiednaturalgas TGI supplyanalysis Natural gassupplyvs.demandbalance Natural gasdemandprojectionbysector Natural gasreserves Projects intheColombiannaturalgasinfrastructureofinteresttoTGI Gas pipelinenetworkandtransportcapacity network Map ofoperationsTGI, geographiccoverageofgaspipeline GEB Presence 128 127 119 113 99 94 73 73 72 71 63 61 60 59 50 47 31 30 29 29 29 28 27 26 26 24 23 21 20 Figure 33. Figure 32. Figure 31. Figure 30. Figure Actions executed accordingtothebusinesscycle Phases intheHierarchyofMitigationProject Emissions Headquarters ofTGI withinthescopeofISO50001throughSGE 137 135 134 128 SUSTAINABLE MANAGEMENT REPORT