Corporate Social Responsibility Report 2010 1

Corporate Social Responsibility Report 2010

Contact details: Compañía Logística de Hidrocarburos CLH, S.A. Direction of Communication and Institutional Relations C/ Titán nº 13. 28045 Madrid E-mail address: [email protected] Telephone no.: (+ 34) 91 7746000 Fax no.: (+ 34) 91 7746001 CLH Corporate Social Responsibility Report 2010 Index

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Index Message from the Chairman 5 The CSR scorecard 7 A look back at 2010 through its milestones 8 The CLH Group corporate culture 13 1. The CLH Group: leader in oil product transportation and storage 15 1.1. Profile of the Group 15 1.2. Areas of activity 16 2. Value generation 18 2.1. A source of wealth for the company and its interest groups 19 2.2. Economic value generated 20 2.3. Economic value distributed 20 2.4. Indirect economic value 21 2.5. The CLH Group and value generation through its suppliers 22 3. Corporate Social Responsibility in the CLH Group 24 3.1. The CLH Group and its Corporate Social Responsibility strategy 25 3.2. Dialogue with interest groups 26 3.3. Good Corporate Governance Model in the CLH Group 28 3.4. Risk management model 33 3.5. Ethics and integrity 35

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4. Customer focus and quality management 36 Index 4.1. Commercial offer in the CLH Group 37 4.2. Volume of activity 39 4.3. Operational improvements 40 4.4. Quality management and continuous improvement 41 4.5. Continuous improvement in CLH Aviación 46 4.6. Safety in product transportation 48 4.7. Data protection and commercial communications 48 5. Our commitment to people 50 5.1. X-ray and evolution of the staff 51 5.2. Handling and attracting talent 53 5.3. Reconciling working and family life 55 5.4. Developing human capital. Our commitment to training 56 5.5. Career development 57 5.6. Internal communication 59 5.7. Collective bargaining 59 5.8. 2nd Opinion Poll on people in the CLH Group. Relying on the opinion of everyone 59 5.9. Occupational health and safety 60 6. Commitment to society 64 6.1. The contribution made by our company 65

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Index 7. Commitment to the Environment 70 7.1. Respect for the environment and its resources 71 7.2. CLH Group environmental management policy 71 7.3. Environmental costs and investments 73 7.4. Environmental indicators 73 7.5. Waste management 76 7.6. Climate change 76 7.7. Dumping management 78 7.8. Protection of soils and underground water 79 7.9. Management of biodiversity 81 7.10. Impacts deriving from product transportation 82 External verification report 84 GRI contents index 86 How the report was prepared 106 Glossary of terms 112

Previous CLH Corporate Social Responsibility Report 2010 Message from the Chairman

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Message from the Chairman

I am both pleased and proud to present you The difficult economic climate and the with the fourth CLH Corporate Responsibility international financial crisis have had a huge Report, in which we aim to give our interest impact on the sectors where there is a demand groups an account of the main challenges our for oil products, being accompanied by a company faces in the economic, social and reduction in their consumption. For example, environmental spheres. consumption of gasolines and diesels fell by 1.2% compared with 2009, and the total in light This Report has been prepared taking into products fell by 0.8%. As a result, operating consideration the guidelines and principles income has fallen by 1% compared with 2009, included in the 2010 Guide for preparing reaching a figure of 585.9 million euros. sustainability reports from Global Reporting Despite these difficulties, operating profit Initiative (GRI) 3, and portrays a fair and increased by 1.1% and reached 226 million balanced view of our performance and the key euros. relevant issues in corporate responsibility taking into account the activity areas in which we operate and the CLH Group characteristics. In our company, we are convinced that corporate responsibility is a role model that allows us to attain our business goals, while also building the social trust necessary for making our project a credible and long-lasting one. This is why we have set ourselves ambitious goals that we will be working on in the next few years to increase the economic, social and environmental value of our company, and you will find detailed information about them as you read through this Report. CLH Corporate Social Responsibility Report 2010 Message from the Chairman

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Our commitment to quality and excellence has In the environmental field, I would particularly to encourage you to continue moving forward received its reward with the EFQM (European like to mention that the Energy Efficiency Plan with renewed motivation, to make the Foundation for Quality Management) 500+ seal has been put into operation, its aim being to CLH Group a committed company and one that granted by AENOR and the Spanish Club for reduce the use of natural resources while is admired by its interest groups. Excellence in Management. The CLH Group promoting the use of more environmentally I invite you to read the Report you have before also obtained recognition for using the “Madrid friendly technology and processes. This plan you in the conviction that its contents will serve Excelente” mark at its facilities in the seeks to reduce energy consumption by 13% to reveal our firm commitment to Corporate Autonomous Region of Madrid. Our and avoid 21,700 million tons of CO emissions 2 Responsibility and also our achievements in this commitment to innovation has enabled us to being released into the atmosphere. area. complete the process for implementing a 2010 has been witness to the strengthening of management system that has obtained the plan for relations with local communities, certification according to the requirements of through a travelling exhibition that aims at the UNE 166002 standard, which is granted by bringing the company’s image closer to the AENOR. public at large and promoting free-flowing The commitment to good governance and dialogue with interest groups. Over 9,000 integrity passed its most important milestone in people visited the exhibition which lasted for 2010 when the Board of Directors approved two and a half months, during which time it the Code of Conduct, an instrument through visited 27 towns in various Autonomous which we help to create a business culture Regions. José Luis López de Silanes based on integrity and transparency. Besides The milestones we have achieved form the this, during January and February the second Executive Chairman sound basis from which we propose meeting opinion poll was carried out, with the result that the new challenges that our group will be 86.9% of the interviewees said they were facing. Success will be the result of the satisfied or very satisfied with the CLH Group dedication and efficiency of everyone who as a place to work. forms part of it. I would therefore like to extend my special thanks to everyone who is part of the CLH Group, and also to the different interest groups that have worked in association with us all through this year, for the work they have done throughout 2010, a particularly demanding year. At the same time, I would like CLH Corporate Social Responsibility Report 2010 Cuadro de mando de RSC

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The CSR scorecard

2008 2009 2010 2008 2009 2010

Economic dimension Social dimension Operating profit (thousands of euros) 224,966 223,467 226,015 Number of employees 1,787 1,678 1,673 Net profit (thousands of euros) 162,487 177,664 151,185 Average age of employees (years) 48.1 46.5 45.6 Operating revenues (thousands of euros) 588,487 591,707 585,922 Average employee length of service (years) 22 21 20 Economic value distributed (thousands of euros) 612,731 579,818 510,408 Staff turnover (unsought staff loss) (%) 0.5 0.2 0.4 Operating expenses (thousands of euros) 363,521 368,240 359,907 Investment in training (euros) 1,020,200 1,005,511 1,010,945 Investments (thousands of euros) 160,438 137,738 120,288 Average training hours 38 37 33 Dividend (thousands of euros) 246,480 224,173 155,257 % of employees receiving formal assessment of 32% 34% 34% Total Assets (thousands of euros) 1,828,199 1,899,643 1,952,939 performance % of employees covered by collective bargaining 87% 87% 87% Activity Data agreements Deliveries from Facilities (thousands of tons) 39,221 36,989 36,797 Total frecuency rate (TFR CLH Group) 24.4 13.9 12.3 Withdrawals by land sector operators (thousands of tons) 33,181 31,404 30,931 Safety training (Hours) 12,859 12,033 12,945 Withdrawals by aviation sector operators 4,500 4,123 4,296 (thousands of tons) Environmental dimension Withdrawals by marine sector operators 1,540 1,462 1,570 Environmental investments (millions of euros) 4.8 7.9 13.9 (thousands of tons) Direct energy consumption (Gigajoules/year) 443,607 438,663 484,079 Indirect energy consumption (Gigajoules/year) 1,004,045 945,321 932,269 Activity in transport systems Water consumption (m3) 49,356 191,095 165,590 Oil tankers (thousands of tons) 2,187 2,319 2,183 SOx emissions (tons) 296 272 351 Pipelines (thousands of tons) 24,747 22,704 22,368 Volatile organic compound emissions (tons) 817 762 720 Material resources Particle emissions (tons) 19 19 21.9 Number of storage facilities 37 37 38 NOx emissions (tons) 303 290 339 Number of airport facilities 29 29 29 Hazardous waste generation (tons) 4,772 3,682 3,484 Number of chartered oil product tankers 2 2 2 Non-hazardous waste generation (tons) 136 283 97 Number of customers and survey assessment CO2 emissions (tons) 31,452 31,015 34,443 Number of CLH S.A. customers 33 35 33 CO2 emissions in road transport (tons) 3,378 5,845 3,036 Number of CLH Aviación customers 12 10 10 Spills with environmental affection 8 3 1 (1) Average assessment CLH S.A. customers 3 3 Average assessment CLH Aviación customers 3 3 (1)

(1) The surveys are every two years as from 2010. CLH Corporate Social Responsibility Report 2010 A look back at 2010 through its milestones

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A look back at 2010 through its milestones 2010. Reaffirming our commitments

Collaboration agreement “We Move Energy” travelling The CLH Group celebrates the with INDRA to promote the exhibition International Year of Biodiversity internationalization of the CLH The aim of the exhibition was to bring the CLH commemorated the International Year business model company’s image closer to the public at of Biodiversity with a tree planting activity large and establish free-flowing dialogue in which volunteers from the company, The two companies signed an agreement with the various interest groups. accompanied by family members and for working jointly on the structuring, friends, took part. marketing and implementation of the CLH Between December 2010 and February business model in other countries and 2011, the “CLH, We Move Energy” campaign Working in collaboration with the United companies. visited 27 towns where the company has Nations Environment Programme’s “Let’s some kind of infrastructure, in the plant for the planet” campaign, the The services offered by CLH and INDRA autonomous regions of Castile and León, CLH Group organized a tree planting that include projects for strategic advice; Extremadura, Andalusia, Castile-La Mancha, made it possible for a large area of Parque consultancy on making improvements in Madrid, Murcia and Aragón. de los Cerros, in Alcalá de Henares (Madrid), operations, organization and processes; and to be reforested. the implementation of information systems. Over 9,000 people visited the exhibition, which was installed in a specially adapted This action is part of the social action plan The aim is the structuring, marketing and bus in which information panels and touch known as “We move our most valued energy”, implementation of the CLH business model in screens had been set up, besides a lecture through which the company encourages third countries and companies in the oil sector room area where a teacher was on hand to voluntary work among its employees and in order to help to develop and improve their give an enjoyable, educational explanation of gives its cooperation to projects related to logistics activities worldwide, and also in other the company’s main logistics activities social integration, the environment, education sectors where the company’s logistics model or culture. may prove useful. CLH Corporate Social Responsibility Report 2010 A look back at 2010 through its milestones

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Changes in the CLH body of New infrastructures shareholders New storage facility in Arahal A new pipeline 150 kilometres long for reinforcing supply to central Spain The BBK savings bank joined the CLH CLH opened a new facility in Arahal (Seville) body of shareholders after purchasing a 5 with a storage capacity of over 184,000 The company inaugurated a new pipeline per cent stake in the company from Repsol. cubic metres, which required an investment 150 kilometres long between Arahal (Seville) BBK purchased from Repsol the 5% stake of 30 million euros. and Adamuz (Cordoba), in the context of the project for duplicating the southern section in CLH that this oil company held indirectly The plant has 6 tanks intended for storing of the Rota-Zaragoza pipeline. This through Petronor, in order to position itself in gasoline, diesel and aviation kerosene. Most construction work involved an investment of the oil product storage, logistics, of the plant’s capacity will be devoted to the 36 million euros and has made it possible to transportation and distribution sector which storage of strategic fuel reserves. is such a strategic one for the economy, reinforce the supply of oil products to central besides improving its competitiveness. Expansion and improvement of facilities Spain. Repsol continues to hold a shareholding Apart from the new plant in Arahal, in 2010 stake of 10% in CLH. the CLH Group placed nearly 337,000 m3 of new storage capacity in service at various facilities in its logistics network, the most important of them being Loeches, Cartagena, Alcázar de San Juan, Barcelona and Gijón. Besides this, CLH Aviación carried out expansion and remodelling work at the airport facilities in La Rioja, Murcia, Ibiza and Santiago de Compostela. CLH Corporate Social Responsibility Report 2010 A look back at 2010 through its milestones

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Visits to CLH facilities CLH presence at Energy Trade CLH stays among the 100 best Fairs and Congresses companies to work for The CLH Group has continued to promote institutional relations and has received Throughout the year, the CLH Group has The company holds 72nd place in the Merco visits from various public figures and kept up an active presence at symposiums People ranking, which is based on over bodies. and congresses related to the energy sector. 7,500 surveys carried out on different sectors of society. Representatives from the National Centre for The president of CLH, José Luis López de the Protection of Critical Infrastructures Silanes, was a participant at the National The CLH Group achieved 72nd place in the (CNPIC), which is attached to the Ministry of Energy Congress in Valladolid and took part in 2010 Merco People Report that was the Interior, visited the plants in Son Banya several symposiums, such as the meetings of prepared by the Spanish Corporate and Porto Pi in Palma (Majorca), and various the Spanish Committee of the World Energy Reputation Monitor (MERCO), promoted by members of the Ministry of Defence were Council, and the meeting organized by the the consultancy firm Villafañe y Asociados shown around the pipeline facility in La Gas System Monitoring Committee. and the Institute for Analysis and Research. Muela (Zaragoza). Among others to visit the For the fourth year running, the company Key representatives of the company also company were Mario Flores, the Autonomous appears in this ranking which uses a attended other specialized forums, such as Region of Valencia’s Minister of thorough methodology for identifying the the “Energy Transportation” conference which Infrastructures and Transport; Juan Ignacio 100 best companies to work for in Spain. de Lema, President of AENA (Spanish was organized by the Royal Academy of Airports and Air Navigation); Antonio Cejalvo, Engineering, in conjunction with CLH and the In addition, CLH stood in 70th place in the the Valencian Autonomous Government’s ICAI School of Engineering; the forum on new 2010 MERCO report which analyses the Director General of Energy; and Francisco energies in transport, which the Basque companies with the best reputation in the Faraco, Director of the Autonomous Region Energy Authority held in Bilbao; and the country, moving up eight places compared to of Murcia’s Industry and Energy Area. “Cepsa and Biofuels” conference, which was the 2009 classification, and José Luis López organized by the Polytechnic University of de Silanes stood at 59th place among the Madrid’s Higher Technical School of Mining most prestigious leaders and executives in Engineering. the Merco Leaders index, having moved up eleven places since the previous ranking. On the international scene, CLH was present at the COPEX congress which was held in Brussels; the World Biofuels Markets Conference and Exhibition in Amsterdam, and the Platts 3rd Annual European Oil Storage Convention, which took place in Budapest. CLH Corporate Social Responsibility Report 2010 A look back at 2010 through its milestones

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The Board of Directors Cooperation with institutions approves the CLH Code of Commitment to musical education “San Millán de la Cogolla” Foundation Conduct sponsorship The CLH Group holds a partnership The Code of Conduct is applicable to agreement with the Albéniz Foundation for The company has signed a collaboration everyone in the company and takes its promoting the training of young talent in the agreement for sponsoring the “San Millán de inspiration from the Mission, Vision and world of music. Through the terms of this la Cogolla” Foundation, an institution that Values of CLH, the rules of Good agreement, each year the company endows promotes social, economic, cultural and Corporate Governance and the principles a tuition fee scholarship at the “Reina Sofía” tourist development in this town. Higher School of Music. The first student to of the United Nations Global Compact Membership of the IREC Board of Trustees receive a CLH scholarship was the violinist The Code includes guidelines and rules of Eszter Stankowsky. The CLH Group has joined the board of conduct that regulate rights and liberties, trustees of the Catalonia Institute for Energy Historical Archive of Hydrocarbons non-discrimination and rejection of Research (IREC), a reference centre in workplace mobbing, the use and protection In 2010, CLH and the Spanish Energy research into energy efficiency and of company assets, occupational health and Commission (CNE) continued working renewable energies. safety, conflicts of interest and influence together on the recovery of the Historical peddling, transparency and confidentiality, Archive of Hydrocarbons. Early in the year, sustainability, environmental protection and an exhibition of some of the most important New certifications safety of the facilities. documents found to date was put on at the European Seal of Excellence 500+ An Ethics Committee has been set up in head offices of the CNE. Besides this, the order to promote this set of rules, CNE web page has created a section in The CLH Group was awarded the EFQM disseminate them and ensure they are which the main collections can be consulted European Seal of Excellence 500+ after complied with. The committee members are: in digital format. successfully passing an assessment carried the Director of Communication and out by AENOR (the Spanish Association for Institutional Relations, Pedro Martínez, who Standardisation and Certification) and the also acts as chairman; the director of Human Spanish Club for Excellence in Management Resources, Juan Bonilla; the assistant (CEG). The award represents the maximum director of Legal Consultancy, Pedro possible distinction for quality given by this Recalde; and the assistant director of body. Only 34 other companies and Auditing, Manuel Docampo. institutions in Spain hold this seal, and just two of them belong to the energy sector. CLH Corporate Social Responsibility Report 2010 A look back at 2010 through its milestones

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UNE 166002 Certificate for the R&D&i Awards and distinctions consultancy firm drew up a study on the Management System finance departments of almost 2,000 A proven track record companies that operate in Spain in order to The UNE 166002 certificate is given in be able to decide on the award of these recognition of the work carried out by the The president of CLH, José Luis López de prizes. company for boosting its activities in Silanes, received the Senior Management research, development and innovation. In the Forum’s Gold Master Award and obtained “Madrid Excelente” quality mark last three years, the CLH Group has devoted the “Former Student with the most relevant The Autonomous Region of Madrid has 6.6 million euros to projects of this type, the impact on society” prize, awarded by the granted the CLH Group the “Madrid most important of them being improvement Former Students Association of the Higher Excelente” quality mark, a distinction with of the systems for pipeline logistics planning School of Industrial Engineering (ETSII) at which it recognizes the commitment to and simulation for programming, both long the Polytechnic University of Madrid (UPM). excellence made by the best Madrid-based term and daily, and the development of Prizes awarded to CLH Aviación companies and their active contribution to advanced control and operation applications, the economic and social development of the besides highly-developed management tools The airline operator Delta Airlines awarded region. for pipeline integrity. CLH Aviación the ‘Grand Slam’ prize in recognition of the excellence of the service Accreditation given to the Central Product Renewal of the ISO 9001 and 14001 provided at Barajas airport, and also for the Laboratory by the International Automobile certificates safety and respect for the environment Federation The CLH Group successfully passed the demonstrated in its activities. The company The CLH Central Laboratory was included in follow-up audits carried out by AENOR for also took part in the 2nd Company the list of 42 analysis laboratories recognized continuing to hold the ISO 9001 quality Environmental Contest organized by Madrid- by the FIA (International Automobile certificate and the ISO 14001 environmental Barajas airport, together with 90 other Federation) for analysing the fuels used in management certificate. The auditing team organizations, and obtained third prize. both national and international motor racing highlighted the remarkable involvement of “Actualidad Económica” prize for the 100 competitions, making it the only Spanish senior management and other people in the best financial experts centre to be included in this group. company regarding compliance with the Environmental Management System, and also The CLH Group general director of Finance the creation and promotion of various and Economy, Jesús Alba, was elected for activities for achieving continuous the third year running as one of the 100 best improvements, such as suggestions from chief financial officers in Spain by employees, improvement groups and “Actualidad Económica” magazine. This innovation projects. weekly publication and the KPMG CLH Corporate Social Responsibility Report 2010 The CLH Group corporate culture

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The CLH Group corporate culture

Mission

“The CLH Group’s mission is the distribution of Safety liquid fuels in a way that is continuous, efficient and safe. We work so that every day we do our Excellence job better in the firm belief that we are Efficiency providing society with an important service.” CLH Values Commitment

Vision Trust

“The vision of the CLH Group is to collaborate Integrity in economic, environmental and social progress, Responsibility provide our customers with an excellent service, guarantee earning power for our shareholders, develop employment advancement for our employees and the reconciliation of their personal and professional lives. With all of this, Corporate values we aim to be an international referent in the distribution of energy, collaborating towards its Efficiency Commitment responsible use, looking after the safety of people and protecting the environment, and “The fulfilment of our mission is our greatest “We feel we are a part of CLH and this is why cooperating in the prosperity of the places contribution to society. To carry it out as we try to exceed the expectations of those where we have business units. With all of this, it efficiently as possible contributes to improving around us. We honour our commitments and do is also our aim for our employees to feel proud the quality of life of those around us. This is our best to attend properly to the needs of our of forming part of the company, aware of its why we place special emphasis on achieving customers, to produce results for our social relevance and the importance of their our targets quickly and efficiently.” shareholders and partners, and to be work.” increasingly more useful to society.” CLH Corporate Social Responsibility Report 2010 The CLH Group corporate culture

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Responsibility Excellence Trust

“We know how to take responsibility for our “We look for improvement all the time. This is “Our organization is sensitive to social trends actions in relation to all our interest groups. We why we reward creativeness and the generation and perceptions at all times. We believe that in are self-critical, we learn from our mistakes and of new ideas that help the organization to grow. the long term, our ability to prosper runs parallel we believe that merit gives the measure of the We apply the best technology available at all with the ability to inspire trust, respect and people in the organization. We act with times and innovate in the development of our admiration among those with whom we interact: corporate responsibility criteria that are in processes, with the aim of being one step customers, shareholders, employees or society coherence with our aim of sustainable growth, ahead of our customers’ needs and the new as a whole. We are particularly aware of the because we understand the importance of demands of society.” importance of demonstrating our commitment looking after the natural environment, improving in the places where we operate facilities, and of safety and contributing to the improvement of Safety the need to dedicate the greatest of care to the communities we serve.” protection of the natural environment.” “The safety of people, the facilities and the people around them is at the core of our decisions. Maintaining safety standards forms an unavoidable part of our processes.”

Integrity

“Our conduct is irreproachable in everything we do, and this is based on honesty and rectitude. In particular, we create a favourable job environment that works on the basis of respectful collaboration with people’s rights and dignity. As a result, we are a company where a long, attractive, gratifying professional career can be developed.” CLH Corporate Social Responsibility Report 2010 The CLH Group: leader in oil product transportation and storage

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1. The CLH Group: leader in oil product transportation and storage

1.1. Profile of the Group Efficiency and continuous improvement are the characteristics that set the activities of the The CLH Group, which comprises Compañía CLH Group apart, and in its history of over Logística de Hidrocarburos and its subsidiary 80 years they have enabled it to adapt to the CLH Aviación, is the leading company in the demands of the world around it and guarantee transportation and storage of oil products in the the supply of fuels to society, offer its Spanish market. employees a satisfactory work environment, provide its customers with an excellence Structure of the CLH Group corporate capital service and give its shareholders a suitable as at 31/12/2010 return on investment. The CLH Group has one of the largest and 14% Cepsa most efficient integrated oil product 10% Repsol YPF 1% transportation and storage networks in the 5% 10% Disa* 5% 14% world, comprising over 4,000 kilometres of 10% Oman Oil 5% pipeline, 38 storage facilities and 29 airport 10% AMP Capital Investors 5% facilities. 10% 5% BP Oil 5% Galp These infrastructures are available to all oil 5% 5% Novacaixagalicia product operators doing business in Spain, 5% 10% 5% Deutsche Bank aviation companies and other national and 5% Her Majesty The Queen in Right of Alberta 5% international bodies responsible for the 5% Public Sector Pension Investment Board management of strategic reserves, such as 5% 10% 5% Stichting Pensioenfonds Zorg en Welzijn Corporación de Reservas Estratégicas de 5% 10% 5% Global Salamina Productos Petrolíferos (CORES), the public 5% Bilbao Bizkaia Kutxa entity responsible for Spain’s strategic oil 1% Others reserves.

* On 18 March 2011, Marthilores S.L.U. acquired the 10% equity holding that was owned by Disa. For more information about significant direct and indirect equity holdings, see the 2010 CLH Group Management Report and Annual Accounts. CLH Corporate Social Responsibility Report 2010 The CLH Group: leader in oil product transportation and storage

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1.2. Areas of activity The CLH Group has at its disposal 38 storage Biofuels facilities that are distributed across the Spanish The company has facilities where it is possible The CLH Group carries out its activities in two territory of the Peninsula and the Balearic to store and supply diesel with biodiesel and main areas: Islands, with a fuel capacity of 7.4 million cubic gasoline with bioethanol, in order to meet the metres, and most of them are operational • CLH: transports, stores and distributes oil new requirements of the market and continue around the clock for 365 days of the year. products, mainly gasolines, diesels, keeping up the high efficiency of the company’s kerosenes and fuel oils. One of the company’s characteristics is that it logistics system, from the economic and offers instantaneous product accreditation. This environmental point of view. • CLH Aviación: offers services for the storage, means its customers can make use of their distribution and into-plane supply of aviation The start-up of these facilities makes it possible products at different destinations immediately fuels and lubricants. to continue cooperating in the implementation after they have delivered them at a source of the PANER drawn up by the Spanish facility that is a long way away from the government. In this respect, during 2010 CLH 1.2.1. Basic logistics activities destination facility. distributed over 1.6 million cubic metres of The CLH Group has over 4,000 kilometres of Also, another activity is the incorporation of the biofuel, of which 1.2 million cubic metres were pipeline, through which it connects the eight additives and markers required by current biodiesel and 0.4 million cubic metres were Spanish fuel-producing refineries in the legislation, and also those developed by the bioethanol in the form of ETBE (ethyl tertiary Peninsula, and the major receiving ports, with different operators for improving or butyl ether). most of its storage facilities. differentiating the quality of their oil products. The plants that are not linked up with this pipeline network and the ones located in the 1.2.2. New business areas Balearic Islands are supplied by means of Strategic and security storage tankers that are on charter from reputable shipowning companies that offer full guarantee, The CLH Group devotes an increasingly while the medium-sized and small airport percentage of its storage capacity to facilities are supplied by means of tank truck. Corporación de Reservas Estratégicas de Productos Petrolíferos (CORES) and to the oil During 2010, deliveries of products from the companies so they can maintain the minimum company’s facilities totalled 36.8 million tons of fuel reserves required by law. oil products, mostly gasolines, diesels, fuel oils and aviation kerosene. CLH Corporate Social Responsibility Report 2010 The CLH Group: leader in oil product transportation and storage

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1.2.3. Other activities Metrology

Supplies to aircraft The CLH Metrology Unit provides services for This laboratory is fitted with equipment for fuel the calibration, verification and adjustment of characterization that is practically unique in the CLH Aviación has 29 facilities, located at most equipment that measures the volume, sector. It also has a sophisticated samples and of the Spanish airports in the Iberian Peninsula temperature, pressure and density of oil results management system that is integrated and the Balearic Islands, and offers storage, products, in order to guarantee the reliability of into the CLH systems, thereby making it distribution and into-plane supply services for the quantities supplied to the end customer. possible to control and make instantaneous aviation fuels and lubricants. In 2010 it exchange of information regarding the This work is carried out at the Metrological performed over 350,000 aircraft refuelling characteristics of all products stored and Verification Laboratory in Loeches (Madrid), the operations and supplied aircraft directly with distributed by the CLH network. around 3 million cubic metres of aviation fuel. only one in Spain that is accredited in the area of calibration by the Spanish accreditation body Such are the technological characteristics of CLH Aviación also provides advice and technical ENAC, and one of the most complete and the CLH Central Laboratory that in 2010 it was assistance for the installation and maintenance complex in Europe. This Metrology Laboratory is selected by FIA (the International Automobile of distribution networks for various types of an international benchmark in its field, and Federation) as the only Spanish laboratory to aviation fuel. The CLH Aviación facilities are designs and manufactures most of the systems be included in its list of recognized laboratories equipped with technologically advanced it uses for carrying out these controls. During around the world for performing analysis of the resources that guarantee product quality and 2010 this Unit performed near 3,400 fuels used in national and international motor safety in supply operations. calibrations. racing competitions. Service station maintenance Laboratory It also holds collaboration agreements with universities and vocational training centres for CLH provides technical assistance and CLH operates a network of laboratories that carrying out research work, organizing undertakes integral maintenance work for has over 60 years’ experience and enjoys great specialized courses and for training students service stations. It also carries out remodelling prestige in the sector. Their main activities during their practical study period. During 2010 and refurbishment work to bring them into line focus on the quality control analyses it received over 30,000 samples and carried out with current legislation. During 2010, the established in fuel and biofuel specifications, over 127,000 tests. company continued providing its services to a and on researching into incidents occurring in large number of service stations that includes logistics and in the market. It also carries out filling stations, yachting harbours and railway environmental tests and testing of the stations. characterization and conduct of materials and additives using instrument-based analytical techniques. CLH Corporate Social Responsibility Report 2010 Value generation

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2. Value generation

Challenges for 2010 Degree of compliance 2010 milestones Challenges 2011

Sustained growth in Ebitda. High • Sustained growth in Ebitda. • Ending of the Strategic Plan 2007-2011. • Decrease Operating expenses. Decrease Operating expenses. High • To continue with the policy of • Change of version of the purchase competitive prices. management computer system, extending it to the management of Change of version of the purchase High contracts with suppliers. management computer system, extending it to the management of contracts with suppliers.

Our approach

The creation of value for its shareholders and satisfaction for its interest groups are of key importance for the CLH Group, which is firmly committed to transparent management based on relations of trust and cooperation. CLH Corporate Social Responsibility Report 2010 Value generation

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2.1. A source of wealth for the The corporate capital of Compañía Logística de All the company shares have identical contents company and its interest groups Hidrocarburos CLH, S.A. is 84,070,140 euros, as regards rights and obligations and their represented by 70,058,450 shares each with a distribution into classes corresponds solely to nominal value of 1.2 euros, fully subscribed and their representation by means of registered paid up and distributed into three classes: certificates in the case of class C shares, and by means of accounting entries, in the case of • Class A, comprising 90,000 bearer shares. class A and D shares. • Class C, comprising 68,279,401 registered 2.54% of the company shares, corresponding shares. to classes A and D, are listed on the four • Class D, comprising 1,689,049 bearer Spanish stock exchanges, although in 2010 shares. shares in the company were only traded on the Madrid stock market, which can be considered a normal situation. The number of securities traded in that year was 122,505.

Origin of CLH Group earnings in 2010 CLH Group Evolution of operating income Millions of euros

700 1.4% 0.5% 11.1% 600 588 592 585.9 11.1% Air sector. Supply to airports 500 10.9% 10.9% Air sector. Supply to aircraft 400 73.9% Land sector 300

0.5% Charters 200

73.9% 1.4% Marine sector 100

0 2008 2009 2010 CLH Corporate Social Responsibility Report 2010 Value generation

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2.2. Economic value generated 2.3. Economic value distributed

The results for 2010 are a reflection of the Thousands of euros CLH Group’s commitment to keeping up return on investment and the creation of value. Added Value 2008 2009 2010 Supplies 171,424 154,477 168,191 • Operating revenues of 585.9 million euros, Remuneration of capital (Dividends) 246,480 224,173 155,257 1.0% less than in 2009. Staff costs 125,594 123,708 119,653 • Investments of 120.3 million euros in 2010 Payments to governments (taxes + fines) 69,233 77,460 67,307 for the expansion and improvement of Added value 612,731 579,818 510,408 facilities. • Operating profit amounted to 226.0 million euros, meaning an increase of 2.5 million, or Economic value distributed Variation in wealth flows 2008-2010 1.1%. In percentage Thousands of euros • Net profit of 151.2 million euros, which is 2010 300,000 14.9% less compared to 2009. Profit from 13.2 246,480

13.4 2009 224,173 trading and financial transactions was 0.9 250,000 33.0 million euros higher than in 2009, and the 11.3 2008 26.6 177,664

28.0 171,424 200,000 168,191

outcome in Other gains and losses was 38.2 162,487 20.521.323.4 155,257 154,477 million lower than in 2009 due to the 151,185 150,000 125,594 123,708

reversion to results that was carried out in 119,653 40.2 2009 in respect of provisions set up to cover 38.7 100,000 77,460 69,233

tax liabilities. 67,307 30.4 • The listed share price as at 31 December 50,000 2010 was 28.83 euros. 0 Results for the year Supplies Remuneration of capital (dividends) Staff costs Payments to governments (taxes + fines) 2008 2009 2010 CLH Corporate Social Responsibility Report 2010 Value generation

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2.4. Indirect economic value Index of CLH service prices CLH has held prices practically constant In addition to creating direct economic value, • The CLH Group pricing policy has meant a since 2005 the CLH Group creates indirect economic value reduction in the price of the company’s in the social setting in which its operations are services in constant terms since 2005, which Index (2005 = 100) carried out. The main indirect impacts of the directly affects the fuel prices paid by end 150 company were as follows: consumers. 110 • The CLH Group’s oil product logistics system • One of the CLH Group’s aims is to make 100 100 stands out for its integrated nature and an intensive use of the pipeline network in order excellent optimization of the use of available to minimize transport costs. In this way there 50 98 assets and resources, providing a high level is a decrease in transportation by road or

of safety and efficiency in the storage and sea, which gives rise to a decrease in 0 transportation of oil products which is contaminating emissions. It is estimated that 2005 2010 beneficial to consumers as a whole. the CLH pipeline network represents a Constant terms Current terms reduction of 400,000 tons of CO emissions • The high level of efficiency achieved by the 2 released into the atmosphere. The actual average price in 2010 for basic logistics of CLH Group in the management of its gasolines and diesels was ¤7.83 m3 (equivalent to logistics system means that the average cost • On the other hand, the diversification process ¤0.0078/litre). of fuel storage and transportation services is started by the CLH Group in order to be able less than one eurocent per litre, which means to receive, store and dispatch biofuels is Weight of CLH logistics in the final prices of less than 1% of the fuel prices paid by end making it easier for products of this type to automotive diesel and 95-octane gasoline in Spain consumers. be used nationwide. The impact of the CLH service on final prices is less than 1.0%

• Similarly, the adaptation of infrastructures for (%) controlling sulphur content has made it 1.5 easier to introduce products with low sulphur

content which are, therefore, less pollutant. 1.0

0.7 0.7

0.5

0 Automotive diesel 95-octane gasoline CLH Corporate Social Responsibility Report 2010 Value generation

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2.5. The CLH Group and value generation through its suppliers

The CLH Group uses management procedures Centralized purchases are those which possess Both generic information regarding suppliers that make it possible for each purchase to be any of the following characteristics: and the initial requirements for approval are made in a rational, efficient and economic way included in the RePro system. This system • Technical specification and standard use for that integrates with the general budgets and belongs to the Achilles Group, which specializes the whole of the company. corporate purchasing policies. The aims of in supplier information management, and was these policies are: • Those intended for use in investments for agreed by some of the major Spanish and fixed assets. Portuguese companies that operate in sectors • To unify purchasing criteria. such as electricity, gas, petroleum and water, • Those that have some kind of corporate • To hire services and make purchases in a besides the naval sector, in order to be able to identification or image. way that is transparent and economically have the use of a tool that enables them to efficient. In addition to centralized purchases, other record their suppliers and contractors in a way decentralized or local purchases are also made that is efficient, permanently updated, objective The Purchasing and Warehouse Unit is for the purpose of acquiring goods or and non-discriminatory. responsible for centralized management of consumables for a lower value and which are purchases at corporate level. Besides this unit, With RePro, suppliers register just once for all charged against the expense budget. purchase management duties may be the user companies in the system. The delegated to any other unit in the company, The CLH Group uses a list of “Approved information provided by the supplier is therefore particularly in cases where, because their Suppliers of Materials” regarding whom, apart structured and up to date and is the same for purchases are so specific, they have always from verifying that they comply strictly with all everyone. It is one of the channels used for handled this themselves. the requirements established by law, a regular complying with regulations relating to check is made on their reliability through the classification systems that are established in following parameters: compliance with delivery Law 48/98 on contracting procedures for the dates, compliance with the required quality water, energy, transport and standard and compliance with the required telecommunications sectors. control of quantity. In the case of service providers, the assessment criteria are: Quality, Safety and Environment. CLH Corporate Social Responsibility Report 2010 Value generation

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A supplier must first be assessed in order to be • Prevention of discrimination (on grounds of CLH Group awards for purchase of materials approved by the CLH Group. As a general rule, gender, religion, etc.) and hiring of services(1) suppliers of critical materials for basic logistics Thousands of euros • Disciplinary practices. undergo assessment before the first purchase 250,000 is made and are subjected to continuous • Daily working hours. 231,087 assessment after that, with the dual aim of 200,000 198,190 • Remuneration. guaranteeing their ability to supply in 150,000 145,478 accordance with the specified requirements • Harassment and abuse in the workplace. and verifying compliance with these 100,000 Systems were introduced during 2009 for requirements over time. streamlining communications with suppliers and 50,000 All suppliers and contractors must adhere to users placing orders. The orders are sent 0 the CLH Group safety policy. Safety criteria are simultaneously to the supplier and also, for 2008 2009 2010 therefore used for assessing and selecting the information and follow-up purposes, to the contractors that work for the CLH Group, and centres requesting materials and equipment (1) This information is out of the scope of the review. they are required to comply with the same through electronic mails in PDF format, which safety regulations as CLH workers. also remain accessible for subsequent consultations. Besides this, in 2010 51.6%(1) of the most important contractors and suppliers of materials The implementation of this system has speeded During 2010, 96.64% of the purchases made and equipment were assessed from the up and improved the authorization circuit, by the CLH Group were carried out in Spain. viewpoint of their social responsibility, analysing attaching the necessary information for this in This is because 100% of the company’s aspects such as: electronic format for revision and possible activities are carried out on Spanish soil, inspections, besides which paper format is meaning that most purchases are made in the • Adherence to some international standard in dispensed with. With this in view, the suppliers areas where the company operates, with the the sphere of corporate responsibility are required to send technical information, aim of contributing to the development of the • Prevention of forced, child or compulsory reports, etc. in electronic format and avoid local communities. labour printed catalogues wherever possible. • Freedom of association and collective bargaining CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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3. Corporate Social Responsibility in the CLH Group

Degree of Challenges for 2010 compliance 2010 milestones Challenges 2011

Publication and verification of the High • Publication and verification of the third • Updating of the Corporate Social third Corporate Responsibility Corporate Responsibility Report. Responsibility Outline Plan. Report. • Approval of the Code of Conduct by • Publication and verification of the the Board of Directors. fourth Corporate Responsibility Approval of the Code of Conduct by High Report. the Board of Directors. • Set-up of the Ethics Committee. • Publication and distribution of the To continue disseminating the High new pack of Mission, Vision and Corporate Social Responsibility Values. Outline Plan. • Circulation of the Code of Conduct.

To continue making the Mission, High • Implementation of the ethical code Vision and Values known and mailbox. applying them.

Our approach

With more than 80 years of history behind it, not only does the CLH Group wish to be recognized as the leading company in the Spanish market for the transportation and storage of oil products, but also for the excellence of its processes and services and for its contribution to the wellbeing of the societies it serves. CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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3.1. The CLH Group and its Corporate Social Responsibility strategy

The CLH Group Corporate Social Responsibility The 2007-2011 Corporate Social model seeks to establish relationships of trust Responsibility Outline Plan is the CLH Group with its interest groups and its aim is to turn the programme for implementing its Corporate company into a leader in the transportation, Responsibility Policy. This Plan consists of six storage and distribution of fuels, generating action areas, in which all areas of the company value for society. are involved.

Responsibility and Trust Integrity Efficiency Relations with the Ethics and integrity Environmental community and management and interest groups protection

Action plan Commitment Excellence Safety Attracting and Control and safety in Occupational health Restoration of value retaining talent the facilities and safety Interest groups Reinforcement Company New actions • Policies and • Customers codes • Employees • Strategic Plan • Shareholders

• Mission, Vision Answers

Expectations • Society Communication and Values instruments Web Public presence Report CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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There is a specific area in the CLH Group for • To promote and monitor the plans of action 3.2. Dialogue with interest groups managing Corporate Social Responsibility in provided for in this Outline Plan and to keep the company, the Communication and the administrative and management bodies In line with its Corporate Social Responsibility Institutional Relations Management, which of the company informed about their strategy, throughout 2010 the CLH Group has receives cooperation and advice from the progress. kept up an active presence in bodies and Corporate Social Responsibility Committee and associations related to the energy sector. • To verify compliance with the external is supervised by the Management Committee. commitments undertaken by the CLH Group For example, the company is a member of the The following are among the duties of the in relation to Corporate Social Responsibility. top organizations for professionals in the Corporate Social Responsibility Committee: energy sector, such as the Spanish Energy Club • To support the Communication and (Enerclub) and the Spanish Association for • To review the focus of the Outline Plan and Institutional Relations Management in Energy Economics (AEEE). It is also an the action programmes that form part of it. identifying and engaging in dialogue and associate member of a wide group of business cooperation with the different interest associations, including the CEOE groups. (Confederation of Employers and Industries of • To collaborate in the preparation of the Spain), the Spanish Círculo de Economía, the Corporate Social Responsibility Report. Spanish Businessmen’s Circle, the American Chamber of Commerce, the Luso-Spanish Likewise, and within the framework of this Chamber of Commerce and Industry, the IE Corporate Social Responsibility strategy, in Business School, the Institute of Directors- 2007 the CLH Group became a member of the Administrators and the Association for United Nations Global Compact which involved Management Progress. its undertaking to support and develop the ten principles of this pact in relation to respect for human and labour rights, the environment and anti-corruption practices. As a result, and as part of its commitment, each year the CLH Group draws up a Progress Report in which it reports on the progress being made by the company in this field. CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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Besides this, and pursuing a spirit of continuous Besides this, key representatives of the Among others to visit different company improvement, this year the company also joined company also took part in other specialized facilities were the Autonomous Region of the board of trustees of the Catalonia Institute events, such as the forum on new energies in Valencia’s Minister of Infrastructures and for Energy Research (IREC) and has continued transport, which the Basque Energy Authority Transport, the President of AENA, the Valencian to work in association with the National Energy held in Bilbao, the “Cepsa and Biofuels” Autonomous Government’s Director General of Commission on the recovery of the Historical conference, which was organized by the Energy, the Director of the Autonomous Region Archive of Hydrocarbons. Polytechnic University of Madrid’s Higher of Murcia’s Industry and Energy Area, and the Technical School of Mining Engineering or the manager of Malaga Airport. CLH contributed to the sponsoring of events in “Energy Transportation” conference which was the sector, such as the seminar entitled “Energy During 2010, the company attended to over organized by the Royal Academy of Policies and sustainability: the European one hundred journalists asking for information Engineering, in conjunction with CLH and the challenge”, which the Spanish Energy Club about the CLH Group and its future projects, ICAI School of Engineering. (Enerclub) held in Seville, or the conference besides which press conferences and meetings given by the Sultanate of Oman’s Ministry of On the international scene, CLH was present at with the media were organized for giving Trade and Industry, which was organized in the World Biofuels Markets Conference and publicity to the company’s economic results and Madrid by the New Economy Forum (Foro de la Exhibition in Amsterdam, the Platts 3rd Annual its main projects. Nueva Economía) in association with The Wall European Oil Storage Convention, which took In this regard, “El Nuevo Lunes”, a newspaper Street Journal Europe. place in Budapest, and the COPEX congress devoted to economic affairs, has once again which was held in Brussels. The company also held a new meeting of the recognized the CLH Group communication Club for Excellence in Management (CEG) In 2010 the CLH Group continued promoting policy and has ranked the company as one of Forum at its head office, and hosted a meeting institutional relations and received visits from the top 20 private companies with the greatest of the 6 Sigma committee of the Spanish various public figures and bodies, such as the degree of reporting transparency. Also, in its Association for Quality (AEC) at the central National Centre for the Protection of Critical section devoted to assessment by the media, products laboratory. Infrastructures (CNPIC), representatives of the the Spanish Corporate Reputation Monitor’s Ministry of Defence and from the Aragonese 2010 Merco Report considers CLH to be the The CLH Group has kept up an active presence Association of Service Station Operators. second best-rated company in the oil sector for in forums and congresses during 2010. The its transparency and approachability. chairman, José Luis López de Silanes, spoke at the Valladolid National Congress of Energy and The company also has a corporate web page, participated in various events, such as the one of the Group’s main communication tools, meetings of the Spanish Committee of the which registered around 50,000 visits during World Energy Council and the one held by the 2010. Gas System Monitoring Committee. CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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3.3. Good Corporate Governance Model in the CLH Group

One of the pillars in the corporate social • The functioning of the General Meeting of The administrative structure of CLH is responsibility strategy of the CLH Group is the Shareholders. established in the Articles of Association and set of corporate governance practices that have guarantees the presence of representatives of • The composition and duties of the been implemented. These measures are the vast majority of shareholders on the Board administrative bodies. directed at achieving the company’s strategic of Directors. This means that actions for targets through the implementation of the best • The corporate governance regulations. consultation with the shareholders promote good governance practices in listed companies. free-flowing dialogue that has a direct effect on • Relevant information of interest regarding the processes for decision-making by the The internal regulations that govern the actions the CLH Group. supreme administrative body of CLH. of the CLH Group in the area of good governance are contained in the Articles of Association, the General Meeting of Shareholders Regulations, the Board of Directors Regulations and the Internal Regulations for Conduct in the Securities General Meeting of Shareholders Market. The circulation of good governance contents is a priority issue for the CLH Group, and so the Board of Directors use of its web page (www.clh.es) has been promoted as a tool for offering accessibility to these contents and ratifying its commitment to Audir Committee Appointments and transparency. Remuneration Committee This web page contains a section called “Information for Shareholders and Investors” in Management Committee which the following can be consulted: • The corporate capital structure and the

company’s shareholders. Corporate Social Responsibility Human Resources Strategy Quality Operations CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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3.3.1. General Meeting of Shareholders 3.3.2. The Board of Directors

The General Meeting of Shareholders is the The Board of Directors holds powers on Also, its composition, powers and operation are supreme governing body of the company and matters relating to management of the regulated by the CLH Articles of Association holds powers for deciding on the matters that company and acts as its representative. With and the Board of Directors Regulations and the affect the company and which are not attributed the exception of matters that are set aside for Regulations governing Conduct in the by law or by the Articles of Association to the decision by the General Meeting, the Board of Securities Market. authority of another company body. It will Directors is the supreme decision-making body In order to optimize the process, the Board of necessarily meet within the first six months of of CLH. Directors has set up the following committees each calendar year in order to assess the The criterion applied in the actions it internally as complementary administrative performance of the company, approve the undertakes is maximization of the company bodies: annual accounts and decide on allocation of the value, both in the long and the short term, by results. The organizing and running of the Audit Committee, with the aim of supervising supervising the performance of business General Meeting, and the shareholders’ the performance of internal audits, requesting activity and assuring its future viability. exercise of their rights at the time it is and receiving information regarding external convened and held, are regulated in the audit, and guaranteeing the accuracy of General Meeting of Shareholders’ Regulations, information in relation to the shareholders and which complete the provisions of the law and financial markets. the Articles of Association. Appointments and Remuneration Committee, whose aim is to report on or present proposals in respect of the appointments to office and remunerations of Board Members, the members of the executive committee and Board Committees and the executives of the company. CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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Board of Directors as at 31 December 2010

Chairman - Mr. José Luis López de Silanes Busto Chief Executive Officer Members Mr. Daniel Micheal Agostino Mr. Hamed Sloom Mubarak Al Athobi Mr. Ahmed Hassan Al-Dheeb Mr. José Eulogio Aranguren Escobar Mr. Mario Armero Montes Mr. Raimundo Baroja Rieu Mr. Alfredo Antonio Barrios Prieto Mr. João Pedro Leitão Pinheiro de Figueiredo Brito Mr. Demetrio Carceller Arce Mr. Pedro Fernández Frial Global Noray, S.L. (represented by Mr. Miguel Iraburu Elizondo) Global Ramayana, S.L. (represented by Mr. José Luis Palomo Álvarez) Global Winche, S.L. (represented by Mr. Guillermo Briones Godino) Mr. Philip Bernard Holder Kartera 1, S.L. (represented by Ms.. Alicia Vivanco González) Mr. José Luis Pego Alonso Mr. Dominique de Riberolles Mr. Juan José Rodríguez Fidalgo Mr. Robert Edward Verrion Secretary Mr. Luis Valero Quirós CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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3.3.3. Management Committee 3.3.4. Unified Code of Good Conduct

The Management Committee is an internal During 2010 the CLH Group has followed the The modification of article 14 includes the legal steering and control body incorporating other corporate governance recommendations changes relating to the minimum advance lower-ranking committees with powers for included in the Unified Code of Good Conduct, notice for publishing the announcement controlling certain specific functions: which was approved on 22 May 2006 by the convening the General Meeting of Spanish Securities and Investments Board • Strategy Committee. Shareholders and, as regards the right to (CNMV), without prejudice to the special request a complement to the calling of the • Human Resources Committee. features arising from the company’s ownership General Meeting of Shareholders, it reproduces structure and administration. In this respect, • Operations Committee. the legal right held by all shareholders who special mention should be made of the represent at least 5% of the CLH corporate • Quality Committee. maximum participation that the shareholders capital, because this is potentially of interest for have in the management of the company since • Corporate Responsibility Committee. the shareholders and in line with the best the Articles of Association stipulate that every corporate governance practices. shareholder with equity holdings of 5% or more are guaranteed a presence on the Board of The regulation of directors’ remuneration as laid Directors, meaning that practically all the down in the Articles of Association has, in turn, shareholders, which currently hold 99.15% of its also been adapted to the reality of the company, corporate capital, are represented on this body. to the most recent corporate governance regulations and to the legal requirements in this On the other hand, it was agreed by the regard. The new wording of article 27 of the General Meeting of Shareholders, held on 15 Articles of Association links the remuneration December 2009, to modify certain of the of the Board of Directors to the profits obtained Articles of Association, one of them being by the CLH Group, thereby helping to align the article 14, relating to the convening of the interests of the directors more fully with those General Meeting of Shareholders, and article of the shareholders. 27, which deals with the remuneration of the directors, the purpose in both cases being to adapt their wording to changes in the law and to recommendations as regards Corporate Governance. CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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The above-mentioned article also establishes a 3.3.5. Participation in the development of The CLH Group makes its voice heard on the specific salary for holding office on the board of public policies issues that affect it through its membership of directors, which is separate from the different the Spanish Energy Club and the Spanish types of compensation that may be payable to The CLH Group belongs to a number of Committee of the World Energy Council. The board members who perform executive duties, important organizations in the hydrocarbon following are among the important issues that using for this purpose a formula that is identical sector, through which it states its position on the company has focused its attention on: or similar to that used by most listed various public matters that affect it. • Projects for regulations relating to the legal companies. In any case, the article itself For example, the General Secretary of CLH is a specifications of products. establishes that these remunerations shall be member of the Hydrocarbons Advisory Board at reported on in the Report and the Annual the Spanish Energy Commission (CNE), the • Biofuels. Corporate Governance Report, thereby public regulatory body attached to the Ministry • Minimum security reserves. complying with the transparency that must of Industry, Tourism and Trade. As a member, he necessarily be observed in this regard. represents the interests of liquid hydrocarbon The CLH Group participates in the Joint Inspection Group (JIG) through CLH Aviación. In short, the modification of both articles was storage and logistics companies. These This is an organization that was created by the adopted after carrying out a comparative study companies also defend their common interests majority of the oil companies in order to of the way these aspects are regulated in the through ASTERQUIGAS, the Spanish promote and guarantee quality control and articles of association of the principal Spanish Association of Bulk Receiver Terminals for efficiency in aviation fuel facilities, developing a listed companies, and is considered to be in line Chemicals, Liquids and Gases, to which CLH global standardization for good practices in with the best corporate governance practices. also belongs. aviation equipment. The CLH Group also holds membership of CEOE, the Spanish Confederation of CLH Aviación also belongs to IATA, an Employers’ Organizations, and is a member of association created in 1945 to promote and various committees in this body, such as the control services linked to airline companies. Its Committee for Social Responsibility in mission consists of representing the industry in Business, the Environment Committee and the order to obtain the improvements that are Energy Committee. possible in a global economy, providing its members with professional support. CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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3.4. Risk management model CLH Group risks The Risk Control and Management System established by the CLH Group is based on the methodology of the Committee of Sponsoring Organizations of the Treadway Commissión

(COSO II), which covers all relevant areas and Strategic Operational Reporting/financial Compliance processes in each of the Organizational Units. The CLH Group seeks to achieve the following objectives through this methodology: • To identify and assess the key risks in each business. on the Group’s operations (e.g. system The company therefore assesses: • To know the risks that must be assumed and failures, occupational and environmental the risks to be avoided for developing the • Inherent risks (risk that is present for CLH accidents, shortcomings in the processes, business. in the absence of any action taken by the etc.). Management for changing the probability of • To draw up the necessary plans of action for • Reporting/Financial Risks: Those that the risk occurring or its impact). reducing the main risks. directly affect aspects of information • Residual risks (risk that remains even after In accordance with this methodology, the reported to the company and/or third parties the Management has implemented a CLH Group has arranged the risks into four (false information given to investors, response to that risk). The most important of groups: shareholders, etc.). This category also these latter risks are related to safety in includes financial risks (e.g. credit, market, • Strategic Risks: Those that are considered product storage and transportation, the liquidity, etc. risks). to be key for the Group and which must be safety of staff and the environment, solvency managed proactively and as a priority (e.g. • Compliance Risks: Those that affect and liquidity, and also risks related to deciding on investments, entering new compliance with internal or external compliance with the targets established in segments, generational change-over process, regulations in respect of third parties the Group’s Strategic Plan. etc.). (compliance with safety and environmental rules, presentation and payment of taxes, • Operational Risks: Those that affect compliance with the law on protection of operational management, and which may personal data, etc.). come to have a significantly disturbing affect CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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The CLH Group has developed a risk The Risk Map Technical Secretary’s Office called Sociedad de Prevención de management procedure that is adapted to its supports the organizational units in their work Fraternidad Muprespa, with which activity and its associated risk profile. It has also for monitoring and control of corporate risks, by agreements for the Ergonomics and established continuous monitoring of the risks ensuring due compliance and also monitoring Psychosociology and Medicine in the in each process and unit in the organization. the plans of action established regarding risks Workplace (Health Monitoring) specialities The Management Committee is notified of their until they have been placed at a tolerable level. have been signed, a medical coordinator status and management through the This Secretary’s Office is also responsible for: having been provided by CLH (medical communication channels established in the service Manager). • Integrating risks by taking their current procedure. interrelationships into account. • There is a Safety Management System that The Management Committee is responsible for includes both prevention of occupational • Regular updating of the risk map. proposing to the Board of Directors, through risks and industrial safety. The company is the Audit Committee, the risk profile assumed • Ensuring that information about risks flows in seeking to obtain the OHSAS 18001:2007 by the Group, and also for carrying out follow- the direction of the bodies responsible for certificate (Phase I of the certification audit up of the risks, establishing the appropriate controlling them (Management Committee, has been passed) in order to guarantee measures for guaranteeing their proper control Audit Committee and Board of Directors), maximum safety in all the facilities, while and management. and from there to the units responsible for ensuring that all our activities are carried out managing the corresponding processes or with special attention paid to protecting the projects. health and safety of people. The most relevant control systems in the The target that has been established is “Zero organization are: Accidents” of any type that may affect our employees, contractors, suppliers, customers, • On prevention matters, the CLH Group shareholders and the community in general. organization has its own prevention service that operates jointly for CLH, S.A. and CLH Aviación, S.A. , each assuming its own specialities in Safety in the Workplace and Industrial Health and Hygiene. The Group also appoints “designated workers” for isolated cases of assistance on prevention issues. There is also an arrangement with an outside prevention service, the company CLH Corporate Social Responsibility Report 2010 Corporate Social Responsibility in the CLH Group

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• The organization also has an Environmental • The Group has developed a broad control The purpose of this Code is: Management System (certified by AENOR system related to management of excise • To endeavour to achieve professional, ethical, according to the ISO 14001 standard) which taxes in order to eliminate any error in the responsible conduct on the part of the endorses the presence of different application of current regulations and the company’s employees in the performance of environmental criteria in all its activities and corresponding tax payment demands. The their activities and discharge of their duties. during their entire life cycle. In this way, harm management of financial risks, such as to people and damage to property and the market, credit and liquidity risk is, in turn, • To create a business culture based on the natural environment are guarded against. managed through sensible policies that do integrity of their conduct, that is in harmony not compromise the aims of the company. with the corporate reputation of the • There is an Integrity Management Plan for CLH Group. infrastructures with annual monitoring of goals and objectives, that implements the 3.5. Ethics and integrity The CLH Group Code of Conduct is applicable internal rules and procedures required for to the members of the company’s administrative carrying out operational work efficiently and During 2008, the CLH Group started work on and management bodies, and to all employees safely. This plan is being drawn up in designing a Code of Conduct in accordance in the companies that form the CLH Group. The accordance with the API (American with the best international practices. The CLH Group also will promote the code among Petroleum Institute) Regulations which focus document was approved by the Corporate its suppliers, contractors and co-workers, in on storage facilities and oil pipelines. Social Responsibility Committee and the order to create a link and provide guidelines for Management Committee. The Corporate Code conduct that conform to the principles and • A Succession Plan has been designed for of Conduct was finally approved at the Board values contained in this Code. complying with the generational change-over Meeting held on 27 July, and so a mechanism target established in the Strategic Plan. This is now established for employees to have the plan is in the process of being implemented use of confidential communication channels on and has made it possible to identify the key this matter. positions which will require replacement staff in the short term and during the next few This Code is also published on the web page years. A training plan has been drawn up for and on the corporate portal and has been covering these jobs so that the future notified to the CNMV. managers can acquire the necessary abilities and skills for taking on the new tasks assigned to them. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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4. Customer focus and quality management

Degree of Challenges for 2010 compliance 2010 milestones Challenges 2011

To obtain European excellence 500+ High • Obtaining European excellence 500+ • Consolidation of the CLH central recognition, in accordance with the recognition. laboratory as a reference centre in EFQM model fuel technology. • Obtaining the licence to use the Madrid Excelente quality mark. • Maintenance of all quality certificates Implementation of a management High and accreditations, as well as system for innovation • Obtaining certification of the R&D&i business Excellence recognitions. system according to the requirements Design and implementation of Selection of an additive for improving High of the UNE 166002 standard. actions for improvement in all the critical properties of biofuels spheres of management and activity. (behaviour under cold conditions) • Adoption of the CLH specifications for allowing the increased presence of • Systematization and promotion of a biofuels in fuels for transport, Increase of the hydrant network at High global project initiative and targets maintaining quality guarantees for the Malaga airport. for improvement/ reengineering in all end user. company processes, encouraging the • Maintenance of all quality certificates use of “lean management” and “seis according to ISO 9001 ISO/IEC sigma” tools. 170225, obtaining specific certification for the Barcelona storage facility according to the port authority manual requirements.

Our approach

Excellence in the service provided to its customers is fundamental for the CLH Group. One of its aims is, therefore, to guarantee society with a safe fuel supply that focuses on efficiency and quality in service. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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4.1. Commercial offer in the CLH Group

The company offers a wide range of services • Integrated System for Operators (S.I.O): Several facilities have also been adapted for related to fuel storage and transportation, This system provides operators with all the storing bioethanol and making blends of besides the supply of fuels for aviation. real-time information necessary for the gasoline with this biofuel at the time tank performance of their activity, while also trucks are loaded. • Access to facilities: The conditions for allowing them to carry out a number of third-party access to storage and transport • CLH Aviación services: CLH Aviación is operations directly from their own offices: facilities existing in Spain, which include the currently present at 29 Spanish airports in registration and consultations of orders and CLH facilities, are established in Article 41.1 the Iberian Peninsula and the Balearic customers, movements and consultation of of Law 34/1998, of 7 October, on the Islands, providing storage, distribution and their product account balances, and Hydrocarbons Sector. This law establishes into-plane fuelling services for aviation fuels consultation about carriers and tank trucks. that the owners of fixed oil product storage and lubricants. It also gives advice and and transportation facilities, which are • Additivation: CLH offers its customers the technical assistance for the installation and authorized in accordance with the provisions possibility of adding the additives of their maintenance of distribution chains for various of article 40 of this law, must permit third- choice to the products dispatched from its types of aviation fuel. CLH Aviación supplies party access through a negotiated procedure, facilities. These additives are automatically turbofuel (JET A1), aviation gasoline (AVGAS under technical and economic conditions that added in the loading arm. CLH assesses and 100LL) and aviation lubricants at airports. are non-discriminatory, transparent and selects quality and antifreeze additives for objective, applying prices that they must improving product quality. make publicly known. • Biofuel services: With the aim of satisfying its customers’ requirements, CLH incorporated loading-arm biodiesel and bioethanol blending logistics services into several facilities. The biodiesel services currently offered are blends of fatty acid methyl esters (FAME) with diesel prior to tank truck loading in proportions of up to 5%, and in-line blends in different proportions from 5% up to 30%, which the customer can request for dispatch in each cargo loaded. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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• Service station maintenance: CLH offers measurement of the quantities received and internal movement of products. Technical technical assistance for the integral delivered is backed up by an assurance competence in this field is backed up by maintenance of service stations. This work system that is also supported by a metrology accreditation from the Administration in the encompasses both service station laboratory accredited in accordance with the area of volume, and by ENAC (the Spanish maintenance and technical assistance, such ISO/IEC 17025 standard. accreditation body) in its range of operations as their adaptation. For achieving this, the • Analysis laboratory services: The • Product identification: Because of the company has 22 workshop vehicles that are management of fuel technology and quality is nature of the CLH business, the services fitted out with the latest equipment and one of the distinguishing strengths of the provided by the company are subject to electronics and metrology laboratories for CLH Group, whose prestige and reputation requests for information. In this respect, the carrying out this activity, and offers their are recognized on a nationwide and ADR (European Agreement on the Carriage services around the clock for 365 days a European level. The CLH Group has achieved of Dangerous Goods by Road) regulations year. this with a network of laboratories for make it compulsory to identify the products • Supervision of deliveries: The oil carrying out product analysis and being transported and the risks arising from companies deliver products to CLH through characterization. This network is formed by them: the national refineries or through imports by seven laboratories that are coordinated from – The tank trucks that are loaded at CLH tanker from foreign refineries. There is a the Central Laboratory in Madrid. It holds facilities use a system of plates identifying CLH team working at each of the eight accreditation according to the ISO/IEC the type of substance and the associated refineries that are distributed throughout 17025 standard and has one of the most risk. Spanish peninsular territory (La Coruña, complete analysis services portfolios in the Tarragona, Cartagena, Puertollano, Huelva, sector. – In addition, the delivery notes, which serve Algeciras, Bilbao and Castellón), that is in as accompanying commercial • Metrology and calibration services: permanent contact with the refinery staff and documentation, have the safety measures Another of the skills that set CLH apart is its has first-hand control of the quality and in the event of an accident occurring technical ability in the field of metrology. It quantity of the products, besides which all printed on the back. operates a metrology unit that provides products that are imported by tanker are services for the calibration, verification and analysed before being unloaded. CLH adjustment of equipment used in measuring performs analysis on 100% of the products volume, temperature, pressure, density, and that enter its system, which ensures that all length and transmission of electrical signals, the products entering its logistics system in order to guarantee the reliability necessary comply with the quality standards established in an activity such as quantity control in all by contract. Besides this, accuracy in the processes for the receipt, delivery and CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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4.2. Volume of activity

During 2010, the weak economic and financial Because of greater activity in the aviation and Increase in our strategic reserves storage situation of the environment has been mirrored bunker fuel sectors (which are more related to capacity offer in sectors where there is a demand for oil foreign trade), growth in biofuel incorporation products, giving rise to reduced consumption of services, strategic and security oil stocks An outstanding item this year is the important these commodities. This was the case at a storage and the increase in differentiated increase in demand for security storage on the national level where consumption of gasolines additivation and other services, the company part of some of our customers and for CORES and diesels fell by 1.2% compared with 2009, managed to reach year-end with similar (Corporación de Reservas Estratégicas de and by 0.8% in the total for light products. earnings to those achieved the previous year. Productos Petrolíferos), the public entity responsible for Spain’s strategic oil reserves. Withdrawals of oil products from CLH Group facilities totalled 36.8 million tons in 2010, Activity in Aviation New service for bioethanol in loading arm which represents a fall of 0.5% compared with During 2010 the increase of 4.2% in kerosene the 37.0 million tons recorded the previous year. withdrawals is mainly due to the start of CLH has adapted nine facilities during the year Withdrawals in the land sector, also stated in recovery in air traffic, which had declined to enable them to add bioethanol to 95-octane tons, fell by 1.5% compared with 2009. On the significantly in previous years. Passenger traffic gasoline in the loading arm. These plants were other hand, there were increased withdrawals in from most of the airports supplied from CLH fitted with installations for receiving and storing the aviation and marine sectors, which were facilities has exceeded the numbers recorded bioethanol, and also with pumping equipment, 4.2% and 7.4% up, respectively. Biodiesel in the previous year, even when the incidents lines and blenders in the tank truck loading services were also strengthened and recorded that occurred in 2010, such as the cloud of ash arms. a heavy increase in 2010. caused by the Eyjafjallajokull volcano, the air traffic control incidents that occurred in Spain and France, or the closure of European airports due to the cold snap that occurred at the end of the year, are taken into account. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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The biodiesel content in automotive fuel Expansion of bunker fuel capacity on Isla 4.3. Operational improvements increases to 7% Verde - Algeciras

The new specifications included in Royal Great progress has been made in expanding Changes in tax legislation-Adaptation of the Decree 1088/2010, of 3 September, increased the Isla Verde storage facility in Algeciras, Sole Logistics Tax Warehouse (DFLU) tax the maximum biodiesel (FAME) content in which specializes in bunker fuel. Part of the return form unlabelled automotive diesel from 5% to 7%. new storage capacity was put into service in The company made a great effort to materialize the third quarter of the year, and the rest will The innovations introduced by Royal Decree this increased FAME content as soon as become available throughout 2011. This 191/2010, of 26 February, which modifies the possible, adding the possibility of making expansion will help our customers to compete Regulations for Excise Tax on Hydrocarbons, complementary blends of 2% in the tank truck under better conditions in the demanding forced customers to adapt their operations to loading racks to the stocks that had a content bunker fuel market that exists in the Straits of the requirements of the new regulations. of 5% . This CLH initiative was very warmly Gibraltar area. Given this situation, CLH offered new solutions welcomed in the market and practically all to the operators, who demanded that additional customers requested this service. Special operations developments be carried out on the computer applications that support the Tax Authorities’ New differentiated additivation in red diesel Other special services carried out in 2010 Sole Logistics Tax Warehouse (DFLU) tax and heating oil were: return form, as these taxes have a considerable • Storage and loading of fuel oils, removed impact for oil product operators. The extension of differentiated additivation for from the two power stations in Catalonia, into red diesel and heating oil came into operation tanker in Tarragona. This meant making a in December and has now been extended to all specific tank truck unloading installation for CLH facilities. this task. • Leasing a 12,700 m3-capacity tank at the Rota facility to the Ministry of Defence for storage of the fuel used by ships belonging to the Spanish Navy. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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Changes in specifications External assessment of the level of 4.4. Quality management and implementation of the EFQM The new specifications for gasolines and continuous improvement diesels have had considerable consequences in In the assessment carried out by AENOR on The CLH Group has achieved the excellence the company’s processes. This becomes more the level of implementation of the EFQM, 500+ seal, which is the maximum recognition notable in the determination of the base customer sub-criteria were one of the aspects of the European Foundation for Quality gasoline for subsequent incorporation of awarded the most points. Management (EFQM) . bioethanol, indeterminacy of the sulphur in red Regarding annual surveys, which were carried diesel and the saturated monoglyceride content Through this model, not only is the company out in 2007, 2008 and 2009, it was decided in blends of automotive diesel with FAME at committed to its economic, financial and not to carry one out in 2010 as this was 7% and the way in which these monoglycerides customer satisfaction objectives, but also it considered superfluous and was postponed are determined. undertakes a commitment to long-term until 2011, when it will be decided whether to competitiveness and viability based on All these issues have given rise to numerous carry out a global survey or measure specific satisfying the needs and expectations of all its meetings with customers and other interested aspects of management. interest groups and on respect for the groups, such as the Spanish association of environment and the social environment. biofuel producers and the association of Implementation of the customer service operators. These talks have looked for monitoring working group consensus on the measures to be adopted and acceptance of the procedures agreed on. A database was developed throughout 2010 in order to gather all the requests from customers that were collected in meetings held with them or in express requests. These needs are discussed with Operations and Resources Managements in the Customer Service Monitoring Working Group in order to provide the best possible solution and share these needs with the rest of the organization. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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The continuous improvement process in the CLH Group

CLH includes in its quality policy the target Systems for improvement actions Improvement groups of continuous improvement and performance on a par with the best in all its Consolidation and promotion of the kaizen 2010 saw the creation and functioning of activities and processes, this becoming a (a Japanese word meaning ‘change for the improvement groups, both those of a stable reality in a series of specific initiatives: better’) initiative for management of all and “ad hoc” creation nature, for solving reactive and proactive improvement actions problems or taking isolated improvement that emerge in any sphere of the company. actions. Suggestions system The information systems tool that provides The “APORTA” initiative has been support to this methodology has been Management through processes consolidated as a corporate initiative for implemented and it has been fully encouraging staff participation through a operational during 2010, being considered a A more in-depth look has been taken at formal suggestions management system. In sound approach but one that is naturally management through processes that is 2010, prizes were awarded to the best subject to continuous improvement cycles. clearly directed towards continuous suggestions in 2009: improvement with the focus on effectiveness, System for innovation projects efficiency and service quality. • Proposed system for identifying tank truck Actions have been designed for the compartments. A suggestion that has The system for management of innovation deployment of these systems in an given rise to a working group and to the projects was consolidated during 2010 in ascending and descending direction, so that development of a pilot project for the sphere of R&D&i system certification. optimizing the solution and assessing the they reach all levels of the organization. best technology available. Initiatives have also been taken for Implementation of the management through promoting continuous improvement projects, processes approach is hoped to be • Proposed sample-taking system for by designing initiatives for standardization of completed during 2011. improving sample taking in heavy products, the corporate systems for managing these which has been introduced in the facilities projects. that handle these products. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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4.4.1. Main lines of quality management and The recognition that has been achieved places In line with this commitment of the company to continuous improvement the company among a small group of firms that Excellence systems, in 2010 CLH Group also hold this maximum recognition of Excellence in obtained recognition for using the “Madrid Guarantee of Excellence Management which, among other aspects, Excelente” quality mark for its facilities and CLH Group includes in its quality policy the means that the company possesses: activity in the Autonomous Region of Madrid. target of continuous improvement and • Well-designed approaches that are firmly Product quality performance on a par with the best in all its implemented for each and every one of the In 2010, the ISO/IEC 17025 accreditation activities and processes, both strategic and management aspects of the company. operational or related to support, all with the awarded by ENAC was renewed for the fuel aim of satisfying its interest groups. • Clear focus on results both at the level of analyses carried out at its central laboratory. internal performance and key results for the This accreditation endorses the technical As a management tool for all these excellence organization and its interest groups. competence of the tests carried out by the initiatives, in 2006 it implemented the European laboratory. Foundation for Quality Management, EFQM, • Focus on continuous improvement and excellence model, and in 2008 it obtained innovation. In accordance with the wishes of the company’s major customers, the strategy for maximizing European excellence 400+ recognition, • Commitment on environmental, safety and the use of bioethanol in gasolines has been awarded by the Club for Excellence in prevention matters and contribution to defined, this resulting in the establishment of a Management. In 2010 CLH obtained European improving the social environment in which it base gasoline specification which, besides Excellence 500+ recognition, awarded by operates. AENOR and the Club for Excellence in complying with the requirements of Royal Management, achieving a score of between • An interest in and commitment towards each Decree 1088/2010 on fuel specifications, 550 and 600 points. of the people who form part of the permits the addition of ethanol in the tank truck organization. loading arm. This measure not only contributes to the use of bioethanol as a fuel, but also • Continuous comparison with the best in all makes it possible for customers to comply with aspects of management, first seeking their quota obligation. performance that is on a par with the best in order to become a benchmark in The optimization of fast methods for management. characterizing biofuels and their blends at storage facilities also continued during 2010, thereby allowing this service to be introduced and complying with the subsequent legal requirements for use. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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CLH has, in turn, assessed and selected a new consolidated its systems for management Metrological control additive for improving the behaviour of diesels through processes and for participation and CLH has a metrology unit that manages its own in cold conditions. This new additive improves continuous improvement. calibration and measurement laboratories in the behaviour even for diesels containing 7% of In 2010, it also obtained the quality certificate variables associated with the quantification of biodiesel, meaning that the legal specifications for the Barcelona storage facility, issued by the static and dynamic volumes of oil products. on the use of biofuels are complied with Port Authority in accordance with the without the CLH quality standard being During 2010, CLH renewed the accreditations requirements this body’s bulk liquids quality impaired. awarded by ENAC according to the ISO/IEC manual. 17025 standard for the performance of Competence in environmental analyses Commitment to innovation calibrations and tests in its oil product volume CLH Group has implemented an environmental metering system. This accreditation validates During 2010, CLH completed the management system that is certified by the technical competence of the organization in implementation process for its innovation AENOR in accordance with the requirements of activities and functions related to oil product management system, which was certified by the ISO 14001 standard. metrology. AENOR in accordance with the requirements of During 2010 CLH Group updated all the the UNE 166002 standard. This technical competence guarantees analysis methods and included the most precision in the measurements of the quantities This system includes the best market practices important ones in the scope of accreditation of oil products received and delivered by the and endeavours to cover all spheres of according to ISO/IEC 17025, this representing company, thereby satisfying one of the quality innovation, ranging from products and services, a guarantee of technical competence in the attributes that is most important for customers processes and operations, to management control analyses it carries out. and other interest groups, such as the systems. The innovation management system administrations. Process and service quality supports the formal commitment of the CLH Group to innovation as a factor for During 2010, the company continued working One of the aims is to give customers the customer satisfaction and keeping up results in in association with the Polytechnic University of guarantee of a continuous, homogeneous the short term, and also as a factor for Madrid in the sphere of activity of the CLH quality standard in the services provided. CLH competitive success in the medium and long Chair in metrology, where a multi-annual project also honours its commitment to constant term, thereby overcoming market and related to the measurement of static volumes improvement in the processes and services environmental restrictions and difficulties. has been completed and work has started on a provided so that they add the maximum value at pioneer project related to the measurement of all times for its customers and for society, with dynamic volumes using positive displacement the minimum consumption of resources. With a metering. view to achieving these aims, during 2010 CLH CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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The company has also executed its own Biofuels New services projects for improving measurement systems, 2010 saw completion of the process carried Negotiations were carried out and investments procedures and equipment, such as those for out in coordination with the major customers made where necessary to meet demands for calibrating the prover meters that control the and interest groups for making it possible to service made by individual customers in isolated quantities entering the CLH pipeline network. increase the penetration of biofuels in the cases such as, for example: Service station maintenance Spanish market, in accordance with the new • Receipt of heavy fuel oils by tank truck in quality regulations laid down in Royal Decree The quality assurance target in this service Tarragona, their storage and shipping by 1088/2010 and in the different regulatory continues in place. With this aim in view, the tanker. provisions related to the promotion and /or area has implemented its own quality mandatory use of biofuels. • Integration of the TERQUIMSA tanks into management system which has been certified the Sole Logistics Tax Warehouse, with by AENOR in accordance with the ISO 9001 At the present time, the infrastructures, important benefits for customers using that standard. This certification remained valid in procedures, quality control systems and infrastructure. 2010 and the methodology for identifying information management systems make it customer requirements in this service, possible to meet the needs and expectations • The development of infrastructure and assessing and improving satisfaction, continues notified by customers and other interest groups. procedures for connection to other terminals, to be used. thereby increasing the flexibility of the Reengineering of the bunkering process country’s global logistics system, with Reengineering of the bunkering process was operational and cost benefits for the carried out during 2010 by a working group, customers. this initiative clearly focusing on identifying the • In addition, the necessary action has been needs of customers and interest groups, taken to meet the needs stated by or meeting those needs and creating value. identified in new customers, such as the design and implementation of biodiesel storage and blending services. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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4.5. Continuous improvement in CLH Aviación

Regarding continuous improvement activities in 4.5.1. Satisfaction interviews carried out 4.5.2. Conclusions of the interviews held CLH Aviación, action has been taken on two with CLH Aviación customers between CLH Aviación and its main fronts: customers: opportunities for improvement Customer satisfaction is one of the greatest • To speed up the notification of orders placed concerns of CLH Aviación, whose customers The following courses of action for by customers, providing them with a system are not always the end users (mainly airline improvement, expansion and start-up were through which they can fill them in directly companies) because the commercial carried out throughout 2010 in order to provide and even be able to send the information relationship is basically established with the oil service to our customers at the different airport directly to the airports in real time. operators which are, in turn, the owners of the facilities: product. • To develop a new and more flexible system • Start-up of the fuel facility in La Rioja. for conducting operations that provides the CLH Aviación offers services for the storage, • Start-up of the second hydrant network supervisor responsible for them with more distribution and into-plane supply of aviation re-siting and increase in the number of pit information that is more accurate so they can fuels and lubricants. It also provides advice and positions at the new terminal in Malaga be carried out more speedily, thereby technical assistance for the installation and airport. avoiding delays in service provision. maintenance of distribution networks for various types of aviation fuel. • Complete overhaul and adaptation of the Malaga airport facility to the new CLH Aviación keeps up a close relationship requirements of the airport. with the end users (airline companies) so as to be able to analyse their level of satisfaction. • Completion of alterations and start-up at the Throughout 2010 the company held a series of airport facility in Santiago de Compostela. meetings with the different customers in order to ask them how satisfied they were with the service provided, and also about any new requirements they had. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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• Complete overhaul and adaptation of the Another important action carried out in the This new version of the SIADA system will airport facility in Ibiza with replacement of the context of continuous improvement is the make it possible for better optimization of the pumping and tank extinguishing system, development of a new airport information human and material resources at the airports replacement of all the unloading and loading system (SIADA) (version three), which will where it is installed, which will result in better equipment, and automation of this latter replace the present system at Madrid/Barajas, customer service by guaranteeing a more process. All the pipes in the installation were Barcelona and Palma (Majorca) airports, and immediate provision of service. replaced, leaving all the main lines will subsequently be extended to Malaga and On the other hand, work has continued on accessible. Alicante airports. developing customer order applications so as to • Work has begun on alterations to the airport The SIADA system is a tool for planning and integrate them more fully into the CLH Group facility in Alicante. This refurbishment assisting in decision-making, that makes it systems. This process has been undertaken in includes its total adaptation (tanks, reception, possible to integrate the tasks related to two phases and enables a faster, more reliable loading area, fire defence and auxiliary aircraft fuel supply into a single screen. This management of orders, besides improving the services) and connection to the existing system is equipped with the functionality information available to customers on orders hydrant and its extension to the existing necessary for making an initial planning that have been carried out. terminals. Around 40% of the work was schedule for human and material resources, as carried out in 2010 and the new hydrant is well as for monitoring, in real time, any incidents expected to come into operation by the end that occur in aircraft fuel supply operations. of 2011. With version three of this new SIADA system, the following improvements will be achieved: • Technical support and maintenance in CLH. • Equalization of work at different airports. • Exploitation of the SIGA system potential. • SIGA-SIADA interfaces are not required. • Integrated, synchronized solution. • No remote maintenance is required. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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4.6. Safety in product In addition, five new refuelling units for Lastly, authorization has been obtained from the transportation kerosene have been placed in service, all of administration in some autonomous regions for them with the documentation necessary for applying the special procedure for carrying out The CLH Group has an extensive network of oil circulating on public thoroughfares. On the ADR (European Agreement concerning the pipelines for transporting products, linking the other hand, work has started on alterations to a International Carriage of Dangerous Goods by reception points to most of the company’s series of 5 dispenser vehicles to which the Road) tests for the case of aircraft supply storage facilities. This network is fitted with a latest innovations in safety and efficiency will vehicles. control system that is sophisticated from the be added. This type of vehicle is thus adapted to present requirements, permitting the addition operational and safety point of view, and is 4.7. Data protection and connected via satellite, which allows efficient, of safety elements that improve the quality of safe and environmentally friendly management. transport at the airport, the safety of people and commercial communications the into-plane service for these products. The automation of product receipt at Barcelona The company’s commercial information is Airport and its integration into the CLH pipeline The extension of 36 pit positions in the hydrant handled through the Integrated System for control system became operational during network at Malaga airport, corresponding to 12 Operators (SIO), which allows the privacy and 2010. This same system has also been new aircraft parking places, has become confidentiality of customer data to be designed for the receipt by pipeline that is operational through another initiative. The traffic controlled. being restructured at the airport facility in of tank trucks loaded with fuel across this The CLH Group has not identified any breach Alicante. airport’s apron is therefore reduced, and operations can be carried out using dispenser of the regulations or voluntary codes relating Besides this, the facilities in Malaga and Ibiza vehicles that do not have storage capacity. The to marketing communications, including have been restructured by automating percentage of supplies using this method has advertising, promotion and sponsorship, during processes and thereby incorporating greater increased as a result of this extension. 2010. safety measures in the product movement Similarly, no breach of the regulations or operations that are carried out there. The incorporation of devices known as “deadman” (immediate shut-off button) in tank voluntary codes has been identified either in truck loading and unloading as an additional relation to the information the CLH Group safety element has been completed, the aim reports regarding services rendered during being to reduce the risk of spills during these 2010, neither has it received any claim in operations. relation to respect for the privacy or personal particulars of its customers. CLH Corporate Social Responsibility Report 2010 Customer focus and quality management

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Practical case

Promoting the use of The use of biofuels in the transport sector is A study was then organized to determine the biofuels in the transport being promoted from different Administrations best strategy to implement, with the aim of and social groups. One of the courses of maximizing the incorporation of biofuels, and sector action for providing an answer to this demand it was decided that the ideal scenario included is the use of bioethanol in blends with bioethanol blending at 9 CLH facilities. automotive gasoline. With this in mind, CLH Lastly, the projects for engineering and the created a working group with its customers to building works necessary for making assess customer needs and expectations and bioethanol blending possible were to design a satisfactory service. undertaken, in accordance with the service As a result of agreement reached with that had been designed. customers, a quality specification for the base The operational and control procedures for gasoline that permits blends with ethanol was attaining the necessary service quality and established, thereby complying with the product quality levels were developed. The specifications established by Royal Decree pilot tests required were carried out 1088/2010 for gasolines that reach the end subsequently, and by the end of December consumer. 2010 the nine planned facilities were in a position to offer the bioethanol blending service. CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5. Our commitment to people

Degree of Challenges for 2010 compliance 2010 milestones Challenges 2011

Negotiation of new Collective Medium • Performance, dissemination and • Negotiation of CLH and CLH Bargaining Agreements in CLH and assessment of the 2nd Opinion Poll Aviación Collective Bargaining CLH Aviación. among people in the CLH Group. Plan Agreements. of Action with people. • Negotiation of Equality Plans. Negotiation of the Equality Plan. Medium • Negotiation and agreement regarding • Renewal of the EFR Certificate. the Employment Plan for CLH Dissemination and assessment of High Aviación. the 2nd Opinion Poll among people in • Implementation of new system of Evaluation by Competencies: “Better the CLH Group. Plan of Action with • Development of a new system of yourself Project”. people. Competencies.

Negotiation and agreement High regarding the Employment Plan for CLH Aviación.

Development of a new system of High Competencies.

Sustainable reduction in the number High of accidents compared with 2009.

Our approach

The CLH Group business project becomes a reality thanks to the commitment of its human team. The company therefore aspires to offer its employees a satisfactory working environment and an attractive professional career through its policies for training and career development, attracting and retaining talent, and occupational health and safety. CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.1. X-ray and evolution of the staff

People management in the CLH Group is an far away from their places of origin to be able CLH Group No. of employees essential aspect in the company’s corporate to do their job much closer to home. social responsibility strategy. To achieve this, the Maternity protection is also established so that company promotes responsible management in 2,000 if the job entails working under circumstances the different business units under the premises 1,787 that might have a negative effect on the health 1,678 1,673 of ethical conduct contained in the Mission, 1,500 of the pregnant woman or the foetus, the Vision and Values. working conditions are changed or the person The fundamental values of the CLH Group in concerned can move to another job, without 1,000 human resources management are based on this affecting the salary conditions the the right to non-discrimination for reasons of employee is acknowledged to hold. 500 race, nationality, ethnic origin, age, religion, The protection of workers who are particularly gender or civil status. In this respect, no sensitive to work-related risks, because of their 0 incident of discrimination or forced labour has own personal characteristics or physical 2008 2009 2010 been known in the CLH Group during 2010. condition, including those who are officially Besides this, a favourable atmosphere is acknowledged as having a physical, mental or created for the reconciliation of working and sensory disability, is also specifically family life through the various measures that guaranteed. promote diversity and non-discrimination, as The total number of employees in the included in the company’s collective bargaining CLH Group amounted to 1,673 (permanent + agreements. An important point worth temporary) at the end of 2010, which is 0.3% mentioning is the possibility of requesting less than in the previous year. There is also a extended leave of absence of up to three years total of 220 employees in a situation of partial when as child is born or in the case of child retirement as a result of the application and adoption. development of the Replacement Plan that the Similarly, and with a view to help increase company started up in 2007, after being agreed employee satisfaction, a voluntary transfer plan with the trade union representatives. was set up to allow people who were working CLH Corporate Social Responsibility Report 2010 Our commitment to people

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In 2007, the CLH Group began a process for market in recent years. This fact is being Staff diversity 2008 2009 2010 rejuvenating its workforce, which had been noticed more clearly in the latest recruitments % International 0.4 0.4 0.5 agreed with the trade union representatives. made in the company, particularly in technical employees The reason behind the preparation of this plan jobs. Average age 48.1 46.5 45.6 was the low rate of staff turnover and recruitment experienced by the company in the previous fifteen years, all of which were positive circumstances but did, however, result in the average employee age being over 50 years. CLH Group Percentage distribution by gender The application of this plan is having the following direct, quantifiable result: 100% 88 88 88 80% • A significant rejuvenation of the workforce, situating the average age at 45.6 years at 60% the end of 2010. 40%

• Renewed teams that are aligned with the 20% new corporate culture. 12 12 12 Men 0% Women • Increase in the average training and 2008 2009 2010 professional level

• Elimination of redundancies and optimization CLH Group Percentage distribution by professional category of workforces. 100% • Decrease in absenteeism. 55.5 55.0 56.1 80% An essential part in the achievement of this plan has been the success that the partial 60% 33.7 35.2 35.0 retirement plans and replacement contracts Manager 40% agreed with the trade unions. Another Technical staff noteworthy fact attributable to this process is 20% 10.1 Administrative staff 9.1 8.3 increased staff diversity, mainly due to the Specialists and increased number of women joining the labour 0% 0.7 0.7 0.7 cualified workers 2008 2009 2010 CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.2. Handling and attracting talent

The CLH Group is aware of the importance of CLH Group, permanent staff who left in 2010 having the best professionals in a sector such as the energy sector which is so competitive, Gender Age groups and so it makes an effort to offer its employees Women Men <30 years 30-50 years >50 years a quality job while also allowing them to develop Turnover in absolute terms 10 59 2 4 63 their professional career. Turnover Rate 5.3% 4.8% 1% 1% 8.7% Throughout the year, the company has strengthened its relations with vocational Talent retention training and university teaching centres and holds 66 and 17 collaboration agreements, 2008 2009 2010 respectively, with them. These agreements have Average Length of Service 22 21 20 involved students from these centres spending Turnover (unsought departures) 0.50% 0.20% 0.40% their study period for gaining practical experience at CLH Group facilities. Participation in the Erasmus Recruiting Project region of Madrid (Regional Ministry for average length of service of employees in the is important in this aspect as it has allowed 20 Employment, Women and Immigration). CLH Group. university students from different degree In 2010, the number of employees with The starting salary paid in the CLH Group subject areas to be granted scholarships after permanent job contracts increased until it (the starting salary that must be offered to a their international university experience, and reached 85% of the workforce. Moreover, this full-time employee in the lowest professional receive practical training in the company. percentage rises to 93% if replacement and job group and level) was 17,307.17 euros per Another noteworthy initiative is participation in experience contracts, which clearly have a high annum, which represents double the minimum various employment trade fairs, which aim to chance of becoming permanent, are taken into inter-professional salary approved by the help newly qualified young people find a job, for consideration. Of the 246 temporary contracts, Government, which was 8,866 euros per example: the 4th Employment Fair, organized by 71 are replacement contracts and 62 are job annum in 2010. Besides this, in the CLH Group the Autonomous Region of Madrid, experience contracts. the basic salary is the same for all employees in INDUFORUM 2010 (Industrial Employment each professional group and performance level. There are two clear facts that reveal the high Fair) and the 5th Vocational Training level of talent retention in the company: the low Employment Fair, organized by the Autonomous rates of unsought staff turnover, and the CLH Corporate Social Responsibility Report 2010 Our commitment to people

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CLH Group Percentage distribution by contract type Staff recruitment CLH Group

2008 2009 2010 100% Total Local % Total Local % Total Local % 83 85 80% 81 CLH 88 84 95 91 87 96 101 99 98 CLH Aviación 57 55 96 10 8 80 13 13 100

60& Total CLH Group 145 139 96 101 95 94 114 112 98

40%

20% 19 17 15 One of the top priority aspects in the selection The CLH Group offers its employees a large processes carried out in the CLH Group is the variety of social benefits, some of the most 0% 2008 2009 2010 recruitment of people who were either born or important being kindergarten ticket vouchers, live in the same geographical area as they are schooling assistance for children up to the age Permanent Others going to work. In 2010, 98% of all contracts of 24, study assistance for employees, help in signed by the company were completed locally, house purchase, advances on salary, subsidised CLH Group Average employee age this measure achieving the following: holiday programme, meal allowance and help (years) for handicapped family members. • It helps in reconciling working and family life. 22 21 20 The company also provides paid paternity and • Less time is spent travelling between work maternity leave, besides leave for serious illness and home. of family members, moving house or time off • There is more loyalty and stability among the work for sitting important examinations in employees. accordance with the provisions of current legislation. Employees are paid their full salary when on maternity or paternity leave, CLH complementing the public benefits they receive. 2008 2009 2010 CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.3. Reconciling working and family life

Being aware of the challenge that reconciliation • Recognized employment conditions are The CLH Group continues working on new of working and family life means, and the need honoured when a long period of leave is projects that contribute to providing families to develop more flexible work environments, taken. with support and helping its employees to find a through its human resources policy the better balance between their working and • Life and accident insurance. company offers its employees a package of family life. In 2010, an economic assistance measures that encourage reconciliation of • Health insurance with advantageous plan was established through Human working and family life, and so all employees conditions. Resources Management for any employees can enjoy the following advantages: wishing to take part in team sports • Possibility of redeployment after a centre has competitions (municipal, inter-company, in aid • The possibility of part-time work. been restructured or closed down. of charity, etc.). This initiative is designed to • Shorter working hours (with proportional • Public welfare payments are complemented encourage playing sport and enjoying the reduction in salary). in cases of sick leave taken because of benefits derived from this, as besides promoting illness or an accident. a healthy way of life, it also helps to encourage • Paternity leave that is longer than that personal relations and communication between established by law. • Maternity and paternity leave can be take on the employees full salary. • Extended leave of absence for looking after The policy designed to favour voluntary family members. • Flexitime at head office. transfers in order to allow families to be • Flexible holiday calendar. In recognition of its human resources policy, in reunited or closer together also continued 2008 the company obtained the Family- during 2010. Responsible Company (EFR) certificate which Lastly, CLH has a “meetings model” for moving is awarded by the +Family Foundation. This is a ahead with the culture of reconciliation and the private, independent organization that endorses efficient management of time. This model also the company as one that is committed to aims to improve the productivity and efficiency promoting the reconciliation of personal, family of work meetings since it values, respects and and working life. The company also successfully optimizes everyone’s time, which brings tangible passed the maintenance audit carried out in and intangible benefits to the company and its 2009. Besides this, and ratifying its employees. commitment, CLH takes an active part in the EFR Forum of this foundation. CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.4. Developing human capital. The following are among the management skills • Study assistance: The company is also Our commitment to training training programmes that the company offers committed to its employees’ initiative and its employees: offers financial assistance to enable them to undertake the studies they consider to be of Through its human resources policy, the • The “Lead in order to motivate” training interest and applicable for the company. CLH Group has drawn up a programme for programme for managers: this is the professional career development whose aim is consolidation of a training skills programme to promote the professional development of its that started in 2006. In its first phase it was employees. The aim of this programme is addressed to all technical employees with Investment in training in the CLH Group threefold: leadership responsibilities, and since 2009 it Euros has been extended to middle management. • To equip the company with the best trained 2008 2009 2010 human resources for tackling the complex, Its purpose is multiple: to strengthen their ability to manage people, equipping them Investment per 546 568 593 innovative and ever-changing technological, employee economic and business reality. with communication tools, involving them in the message transmission chain and making Total 1,020,200 1,005,511 1,010,945 investment • To develop professional skills for doing an an in-depth study of the mechanisms of efficient job. motivation. The combination of these • To motivate its employees in personal and job elements aims at improving the level of Average training hours terms through a real possibility of career employee satisfaction and optimizing team management. development and economic promotion, 2008 2009 2010 through the appreciation of their experience • Managerial development programme for CLH 39 40 35 and ability to fulfil the objectives marked out employees with high potential. The CLH Aviación 34 29 28 by the company. company finances 100% of the cost of these Total CLH Group 38 37 33 During the last five years, the CLH Group has programmes at business schools. gradually increased its investment on training • Training plan for new recruits: Besides per employee, which was 4.5% higher in 2010 being heavily weighted on the theoretical than it was in the previous year. The total side, the design of the initial training plan has investment on training was over one million practical, personalized scope and introduces euros in 2010, which is a significant amount in the figure of the personal tutor and other relation to the company’s turnover and staff measures. volume. CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.5. Career development

The CLH Group actively promotes the During 2010, a total of 60 people were Testimonies from 2 scholarship holders development of its employees both within their promoted to positions involving greater who recently joined the CLH staff: professional group and in promotion to higher responsibility. In addition, a further 10 groups through periodically setting promotion employees were promoted to a higher • Beatriz Guirao, final year of chemical and development activities which they must professional group, and there were others who engineering. Central Laboratory complete successfully. This enables the moved up to a higher level of development by I chose CLH because during my Erasmus employees to demonstrate the degree of ability complying with the procedures defined in the year I took part in a biodiesel production achieved, an assessment being made of their collective bargaining agreements. project that I found very interesting, and experience and recognition given to the quality Lastly, the CLH Group makes regular because I decided to focus my training in of their performance. assessments of the performance and career the direction of the energy sector. This The company also takes trade union development of its employees. In 2010, a scholarship is a really attractive one because participation into account through a Joint formal performance assessment was carried it means you can combine it with studies, so Committee for Classification and Career out on 34% of the CLH Group employees. you broaden your knowledge and job Development for providing information, making experience has been gained before finishing consultations and monitoring professional the degree course. promotion and development processes. This • Ricardo Gutiérrez, final year of industrial Committee comprises six members, three engineering. Operations control appointed by the company and the other three by the trade union sections. Sharing in the experiences of the Erasmus study period can be very beneficial for companies. Apart from that, the possibility of CLH Group performance assessments learning more by working is tremendously valuable. there’s no doubt about it, but one 2008 2009 2010 of the most remarkable aspects I’ve noticed Average Active Workforce (a) 1,867 1,771 1,704 so far is the wonderful atmosphere that runs Number of employees who underwent formal assessment of 606 598 586 through the company, and its excellent work performance and review during the period (b) environment.

Percentage of employees who underwent formal assessment 32% 34% 34% of performance and review during the period (b/a) CLH Corporate Social Responsibility Report 2010 Our commitment to people

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Practical case

Recruiting Talent: The CLH Group is firmly committed to a 20 young people were chosen through a “Erasmus Recruiting” policy for attracting and retaining talent, as it selection process that was as thorough and is aware that being a benchmark company in demanding as the one used with any its sector of activity means having the best candidate wishing to work in CLH. During Through the “Erasmus Recruiting” professionals. One of its strategic targets in 2009 and 2010 they joined different project, the CLH Group has offered recent years has been, and still is, to departments with a very competitive 20 students the opportunity to continue with the generational change-over interneeship scholarship lasting for six complement their academic training of its staff, which makes it necessary to months and with flexible working hours. with a valuable experience. explore the best sources of recruitment in Each intern was assigned a tutor who search of young, well qualified staff who are supervised their training and helped them in enthusiastic about work. their activities. The “Erasmus Recruiting” project, which is The experience was more far-reaching than carried out in association with other top- a traditional scholarship and provided the ranking companies in the Spanish labour participants with the kind of know-how that market and the PeopleMatters consultancy can only be acquired in the real world of firm, has become the ideal shop window for business. 30% of them are now part of the selecting young professionals and opening CLH workforce. the labour market door for them. The success of “Erasmus Recruiting” has exceeded all expectations and the 2011 edition, in which the CLH Group will be participating again, is already under way. CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.6. Internal communication 5.7. Collective bargaining 5.8. 2nd Opinion Poll on people in the CLH Group. Relying on the During 2010, the CLH Group continued There are two company collective bargaining promoting communication with its employees agreements in the CLH Group to which all opinion of everyone through holding communication meetings, employees are subject, with the exception of nd which were attended by around 120 company those who, because of the characteristics and The “2 Opinion Poll on people in the employees. The contents of these meetings are responsibilities of their job, have their working CLH Group” was held during January and shared with the other employees through conditions included in an individual contract and February 2010, an important participation meetings held with their superiors, the internal are therefore excluded from the collective level of 73.2% being achieved. magazine and through the corporate portal. agreement. The trade union sections and staff In this consultation, 90.2% of those who filled representatives in the CLH Group have their Also, the “Breakfasts with the Chairman” in the survey form said they were satisfied or activity guaranteed, as it is protected by programme, in which 93 people participated very satisfied with CLH as a place to work. This Spanish laws and the Company Collective last year, offers those attending the opportunity figure is even higher than the one obtained in Bargaining Agreement, acting in accordance of getting first-hand news about the strategy the previous survey which was held in 2007. with these rights. 87% of all CLH Group and aims of the company and making proposals employees fall under the collective bargaining and suggestions. agreement system. A new collective bargaining Besides this, four “executive encounters” were agreement started being negotiated in 2010. held throughout 2010 in which the executives were able to hold talks with outstanding representatives of Spanish business society. Collective bargaining

2008 2009 2010 Employees covered Employees covered Employees covered by collective by collective by collectiv e bargaining bargaining bargaining agreements % agreements % agreements %

CLH Group 1,558 87% 1,455 87% 1,451 87% CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.9. Occupational health and safety

One of the main targets of the company’s The efforts made during the last few years in Strategic Plan is to reduce the number of the area of occupational prevention have made occupational accidents. With this aim in mind, it possible for a progressive reduction to be the CLH Group believes in promoting a sound achieved in the Total Accident Frequency Rate culture of prevention that is integrated into all (TFR) in the CLH Group compared with other fields of activity of the firm. The company works years. to guarantee the safety of everyone who forms part of the organization and the activities The aim of the CLH Group’s Occupational carried out in it. Hazard Prevention Plan is to guarantee the health and safety of the people who play a part CLH Group TFR Evolution (Total Frequency Rate) in the company’s activities, and everyone who forms part of the Group is under the obligation to know its contents and apply them. 40 The CLH Group considers that maintaining the 35 maximum level of safety in its facilities is a 30 priority matter, both for its own staff, the staff 25 24.4

employed by contractors, and also for the 20

environment in which the CLH Group carries 15 13.9 12.3 out its activities. 10

To achieve this aim, all the company’s 5

infrastructures are designed and operate with 0 strict respect for the regulations in force and 2008 2009 2010 comply with the most demanding of national and international parameters. CLH Corporate Social Responsibility Report 2010 Our commitment to people

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The CLH Group’s Occupational Health and Accident frequency rate Safety Policy is documented in the company regulations that are published on the corporate 2008 2009 2010 intranet. The company also has a Prevention CLH CLH Aviación CLH CLH Aviación CLH CLH Aviación Plan that is one of the tools for managing and Accident frequency rate 6.94 35.25 4.79 17.35 5.15 22.38 integrating safety into all the CLH Group with sick leave activities. Accident severity rate 0.24 1.1 0.14 0.41 0.19 0.75

5.9.1. Safety management system

The CLH Group has a Safety Management Absenteeism rates. Percentage System that encompasses all aspects of the organization that have repercussions on people, 2008 2009 2010 assets and the environment as regards the CLH risks involved in the company’s own activities or Total Common Contingencies 4.4 3.3 3.5 any that are directly related to it. Total Work Accidents 0.2 0.2 0.2 Total Absenteeism 4.6 3.5 3.7 In November 2010, phase I was carried out in Compañia Logística de Hidrocarburos, S.A. and CLH Aviación CLH Aviación, S.A., with AENOR, S.A. , for Total Common Contingencies 7 7.1 6.1 certification of the health and safety system in Total Work Accidents 0.9 0.5 0.6 accordance with the OHSAS 18001:2007 Total Absenteeism 7.9 7.5 6.6 standard. CLH Group Total Common Contingencies 5.2 4.3 4.1 Total Work Accidents 0.4 0.2 0.5 Total Absenteeism 5.5 4.5 4.5 CLH Corporate Social Responsibility Report 2010 Our commitment to people

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5.9.2. Prevention activities

The CLH Group has carried out various • “Acerca”, the CLH internal magazine, is • Work continued on the monitoring of initiatives in the area of occupational hazard consolidated as an information vehicle for accidents at the facilities, with a letter of prevention with the aim of minimizing the circulating news about actions carried out, congratulation being sent to all facilities that number of accidents. The following actions are the corporate intranet and the training have been accident-free. noteworthy in this regard as they help towards department, and the creation of the • During 2010, the CLH Group continued creating in the company a preventive, proactive suggestions system through “Aporta” (Make developing its “Zero is Possible” project. This culture that is always one step ahead in order your contribution), the corporate portal. project is based on organizing courses, both to eliminate or reduce the risks that can give • At the “Internal communication meetings” in the facilities and at head office, for training rise to accidents: held with company management, talks in occupational risk prevention through • Effort made for communication and followed by debates were organized under “behavioural workshops”. Members of the circulation through periodic publications on the heading of “Towards a new safety chains of command (such as facility the corporate portal: culture” and “Guide to visible commitment by managers), staff from the Prevention, the safety leader in the CLH Group”. Environment and Industrial Safety Sub- Department, including technical staff from the Prevention Service, took part in this 20-Jan-2010 Poster about equipment lock-out initiative. 01-Feb-2010 Risk of falling from a height 10-Feb-2010 Safety contact: Manual staircases and risk of falling from a height 15-Apr-2010 Safety Guide no. 2 - Circular cutting and grinding tools 11-May-2010 Safety Guide no. 3 - Lifting platform operator 09-Jun-2010 Excess weight and obesity prevention campaign 18-Jun-2010 Safety contact: “Protection against mechanical risks” 02-Jul-2010 Safety contact: Occupational road safety 21-Oct-2010 “Vertical ladders” poster 03-Dec-2010 Safety contact: Protection against inhaling and contact with harmful substances 29-Nov-2010 Health and Safety in the Workplace Manual, 2010 Edition 15-Dec-2010 Keep in touch: The walkie-talkie 20-Dec-2010 Safety contact: “Use your helmet” CLH Corporate Social Responsibility Report 2010 Our commitment to people

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The CLH Group also has emergency plans Employee representation in the risk prevention • “Stratification of cardiovascular risk” whose purpose is to safeguard the health and systems is organized through the prevention campaign with the aim of reducing the safety of people and identify situations with delegates who are present at all work centres prevalence of cardiovascular risk among potential risk that can occur at the facilities. If where there are more than 6 employees. In CLH workers, since it is the primary cause of any incident should occur, the emergency plans addition, there is a Local Health and Safety death in Spain. make it possible to organize the courses of Committee at all centres where there are more There are also various programmes for helping action to be taken by the human and material than 50 workers, with equal representation. The its employees and their families in the resources available for dealing with it. They also Joint Committee for Health and Safety is the prevention of illness, among which the most establish the internal and external equal representation body, at company level, for important are: communication channels for reporting the CLH and CLH Aviación. incident and, if necessary, requesting help. • Educating for health: in the “Acerca” internal magazine, which is sent to the home of all The company has different kinds of emergency 5.9.3. Training in occupational health and employees to be shared with their families. plans depending on the type of facility they safety All issues include an article on habits for a have been designed for. There are plans for The CLH Medical Service plays an active role in healthy lifestyle and prevention of serious storage facilities, airport facilities, the pipeline occupational health and safety and, among illnesses (“Take note” section) and another network and, of course, the plan for evacuating other activities, has carried out two on risk prevention in “It’s worth your while”. its head office. A marine contingency plan has occupational health campaigns that were also been developed for action to be taken at • Annual medical check-up for employees. published on the corporate portal: seaport terminals if the case arises. During this annual check-up, the • “Excess weight and obesity prevention” Occupational Medical Service, which is part campaign with the aim of reducing the of the Prevention Service, detects any prevalence of body weight changes among ailments the employee may be suffering from the company’s employees, demonstrating an and gives the necessary advice, according to important positive effect that is not limited the pathology and whatever its origin. solely to the work environment but is good In addition, work has been going on for a whole for the general health of the population. year to prepare a new Health and Safety in the Workplace Manual that is much more didactic, applicable and graphic. CLH Corporate Social Responsibility Report 2010 Commitment to society

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6. Commitment to society

Degree of Challenges for 2010 compliance 2010 milestones Challenges 2011

To continue developing the plan for High • “We Move Energy” exhibition. • To continue with “Together, we move relations with local communities. our most valued energy” project. • Collaboration with 8 associations through the “Together, we move our • Second edition of the “We Move “Together, we move our most valued High most valued energy” project. Energy” exhibition. energy” project. • To continue developing the plan for relations with local communities.

Our approach

The CLH Group’s commitment to society becomes a reality through solidarity initiatives in which the company’s employees participate, and various projects for collaborating in the sphere of society and the environment in areas where it has a presence. CLH Corporate Social Responsibility Report 2010 Commitment to society

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6.1. The contribution made by our company

6.1.1. Our relationship with the community 6.1.2. Minimizing the impact of pipelines To make this work easier, the company has published explanatory leaflets that include the The CLH Group honours its commitment to The CLH Group monitors all its pipelines precautions to be taken in the vicinity of the promote relations with the communities where continuously in order to guarantee their safety. pipelines, particularly when external activities or the company carries out its activities, with a The company has a Pipeline Safety Plan that work must be carried out in the adjacent area, view to learning about the concerns of its carries out regular, thorough vigilance over providing a CLH Group contact telephone interest groups and offering them a service that them. A sophisticated satellite-connected number in case it should be necessary for the is both excellent and sustainable. Therefore, system is used for this, thereby ensuring company to intervene. when any building works are planned the management that is safe and efficient. CLH company holds fluid dialogue with the local also keeps a regular close watch over all its 6.1.3. Guaranteeing a safe supply to society communities that are directly involved, and is infrastructures with the use of aircraft, foot receptive to their suggestions while these patrols and vehicles. The CLH Group is nearing the end of its 2007- works are being carried out. 2011 Strategic Plan, whose aim has been to The company also keeps up a flexible CLH has also assumed the commitment to improve its infrastructure network. With one relationship with the local authorities and the make a continuous effort to carry out its year left to go before its completion, the owners of the land through which the pipelines activities with the least possible impact. So company has invested over 560 million euros in run, in order to explain the characteristics of when the time comes for executing a project, all the last four years for expanding its storage these infrastructures to them and be able to layouts are considered in order to select the plants, erecting new ones and building more count on their cooperation in case of necessity. one that is most environmentally friendly. kilometres of pipeline. The company has this concern for the In this connection, in 2010 the CLH Group environment at the forefront in all building opened a new storage facility in Arahal (Seville works undertaken for improving its province) with a capacity of 184,000 cubic infrastructures, and also when new storage metres that are mainly intended for the storage facilities, such as the ones in Burgos or of part of Spain’s strategic fuel reserves. Salamanca, are built. The construction work for these projects is under way and, when completed, it will be possible to recover the land currently being occupied in order to devote it to other urban uses. CLH Corporate Social Responsibility Report 2010 Commitment to society

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In 2010 the CLH Group placed nearly 6.1.4. Contribution to the Spanish 6.1.5. Social action in the CLH Group 337,000 m3 of new storage capacity in service Government’s Renewable Energies Plan at various facilities in its logistics network, the As part of its Corporate Social Responsibility most important of them being Loeches, The CLH Group continues working on the policy, in 2010 the CLH Group participated in a Cartagena, Alcázar de San Juan, Barcelona and adaptation of its logistics system to the group of projects related to the environment, Gijón. Besides this, CLH Aviación carried out transportation and storage of biofuels, and has culture, education and care initiatives that are in expansion and remodelling work at the airport invested over 25 million euros in order to harmony with its Mission, Vision and Values, and facilities in La Rioja, Murcia, Ibiza and Santiago manage them in a similar way to traditional with the ten principles of the United Nations de Compostela. fuels. The company currently has 13 facilities World Compact. adapted for storing and distributing biodiesel, In 2010, 48% of the company’s social action These projects join those carried out by CLH and also a further 9 plants where gasolines budget was devoted to activities for circulating Aviación, which opened the newly remodelled with bioethanol can be stored and distributed. airport facility in La Rioja, completed the information about the importance of protecting adaptation and transfer of the plant at San CLH promotes the implementation of a more the environment, 28% went to cultural Javier airport in Murcia, besides completing the sustainable energy model through these sponsorships, 16% to pro-integration work and work for remodelling the airport facilities in Ibiza initiatives and continues collaborating in the 8% to education. and Santiago de Compostela. development of renewable energies. The company has also extended its transport network by bringing into service the new 150-kilometre long pipeline between the towns of Arahal and Adamuz (Cordoba), which forms CLH Group Distribution of Social Action expenditure in 2010 part of the project for duplicating the southern section of the Rota - Zaragoza pipeline.

8% 8% Education 28% 16% 16% Care and integration

48% Environmental protection

28% Sponsorships 48% CLH Corporate Social Responsibility Report 2010 Commitment to society

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6.1.6. Commitment to education and culture Real Foundation, the Friends of the Prado The CLH Group collaborated with “Solidaridad Museum Foundation, the Royal Association of Internacional” (www.solidaridad.org) in the The CLH Group also carries out activities in the Friends of the Reina Sofía National Museum emergency work undertaken by this association sphere of education and culture, which is and Art Centre and the “Pro Rebus Academiae” that enables basic goods to be sent to area. It another of the pillars that support its Corporate Foundation, which is attached to the Spanish also gave assistance to “Aldeas infantiles SOS” Social Responsibility policy. Royal Academy of Engineering. (www.aldeasinfantiles.es) in rebuilding the village this NGO has in Haiti, so that the 400+ CLH also holds agreements with the Besides this, in 2010 the company signed refugee children there could have the necessary Autonomous Regional Government of La collaboration agreements with prestigious resources to be given schooling and the Rioja’s Ministry of Education, Culture and Sport cultural organizations, such as the San Millán opportunity to develop. and with various vocational training centres to de la Cogolla Foundation and the Albéniz enable their students to carry out practical Foundation, which it supports for promoting the CLH was also one of the companies to take training at the Group’s facilities. training of young musicians, and joined the part in the football tournament organized for In association with the National Energy board of trustees of the Catalonia Institute for charity by the NGO “Acción contra el hambre” Commission, the company has continued Energy Research (IREC). (www.accioncontraelhambre.org). As a result of working on recovery of the Historical Archive of the money raised through registration fees, it Hydrocarbons which aims at bringing the 6.1.7. Together, we move our most valued was possible for child nutrition projects to be history and evolution of the Spanish oil sector energy carried out in the 40+ countries where this closer to the public at large. The part played by organization works. Four years ago, the CLH Group developed the CLH in this project is to compile and put in The solidarity projects undertaken this year sponsorship and social action plan known as order all the documentation it has kept over the include other initiatives, such as the work done “Together, we move our most valued energy”, last 80 years, as a continuation of the activity in association with the Caico Foundation (www. through which it collaborates in solidarity started by CAMPSA in 1927. fundacioncaico.org) in organizing music therapy projects run by associations and non- sessions for sick children; the help given to On the other hand, and with a view to government organizations in which its Cáritas Santa Teresa (www.caritas.es) in disseminating Spain’s environmental wealth, the employees take part. company has published “La España rural”, a organizing a summer camp for young people new book in the series dedicated to the Among the initiatives carried out in 2010, the with no resources; or the assistance offered to protection of the environment. aid given to Haiti after the earthquake that the Torrejón de Ardoz Fibromyalgia Association devastated the country early in the year was the (www.fibromialgiatorrejon.org) in organizing a In the area of culture, for some years now the most important. few days in which people suffering from this CLH Group has worked in association with pathology could get together and learn various cultural institutions, such as the Teatro relaxation techniques. CLH Corporate Social Responsibility Report 2010 Commitment to society

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Practical case

We move energy

In its Plan for Relations with Local The exhibition was installed in a specially members of local and autonomous regional Communities, one of the company’s most adapted bus that had been fitted out with institutions, such as Civil Protection, the important projects in 2010 was the “CLH, information panels, four touch screens and a police force or the fire brigade, who were We Move Energy” travelling exhibition. lecture room where a teacher gave an received by one or more CLH enjoyable, didactic explanation of the representatives, usually facility managers The CLH Group put this exhibition on the company’s activity. and area managers. The local and road at the end of the year with the aim of autonomous regional media were also bringing the company’s image closer to the The exhibition was parked in key, central invited to be there. public at large and promoting fluid dialogue locations in each of the towns that had been with its main interest groups. selected, staying for an average of one to The “CLH, We Move Energy” exhibition three days in each place depending on the proved very popular and received more than Lasting for around two and a half months, number of inhabitants. of 9,000 visits. Among those who came the exhibition visited 27 towns where the along to see the exhibition there were 3,300 company has some kind of infrastructure, in At each stopping place it was open to primary school pupils and over 1,000 the autonomous regions of Castile and León, anyone interested in learning more about secondary school students, all accompanied Extremadura, Andalusia, Castile-La Mancha, the logistics service that CLH engages in by their teachers. A large number of local Madrid, Murcia and Aragón. and special attention was paid to teachers dignitaries, such as mayors, town councillors and students from nearby schools, for whom and representatives of other autonomous visits were arranged, and also other groups regional and state bodies also attended, related to the Group’s activity. besides members of neighbourhood An opening ceremony was organized in each associations, representatives of the local and of the towns and was attended by mayors autonomous administrations and members and municipal councillors, as well as by other of law enforcement bodies. CLH Corporate Social Responsibility Report 2010 Commitment to society

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6.1.8. Higher education: a valuable asset for In order to further students’ knowledge about the future oil product logistics, the Group organizes periodic visits by students from different CLH is one of the companies to participate in schools of engineering and other education the “Erasmus Recruiting” programme which centres, using them to explain how the enables young university students to use a infrastructures of the Group operate. scholarship to train in the company in order to develop their academic knowledge. Also, with the aim of supporting technological research in the micro-robotics sector, CLH finances final year projects on this subject that are carried out by students undergoing vocational training. Besides this, CLH, in conjunction with the Polytechnic University of Madrid, is the creator of the CLH Chair in Hydrocarbon Metrology, and in 2010 it sponsored the Master’s Degree in Pipe Engineering offered by the University of Zaragoza. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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7. Commitment to the Environment

Degree of Challenges for 2010 compliance 2010 milestones Challenges 2011

Presentation of the EMAS-III High • The second follow-up audit for ISO • To successfully pass the audit for declaration for four storage facilities 14001 certification was successfully renewal of the Environmental and two airports, to the passed. management system in accordance administrations. with the ISO 14001 standard. • Drafts audit EMAS. Application and extension of the High • Completion of landscape restoration • Work has started on R&D&i projects: 1,000 trees for 2009 campaign, with on the land formerly occupied by the New techniques for environmental 1000 more trees for 2010 as an Somorrostro storage facility. recovery of soils and valuation and element for reducing the CO 2 utilization of tank bottom residues for • Completion of soil remediation work emissions of the group. energy purposes. on the land formerly occupied by the Improvement of storage facility High Santurce storage facility. • Monitoring of the CLH recycles and lighting efficiency. 1,000 trees for the CLH Group programmes. Reduction of electricity consumption High in pumping equipment.

Use of paper from sustainably High managed forests.

Our approach

The CLH Group assumes commitments for being recognized as a company that is committed to the environment, thereby aligning itself with the concerns of society and other interest groups. To achieve this, the company encourages solutions for reducing the use of resources, technologies and processes in a way that is respectful and responsible towards the natural and social environment, all of which serves to guarantee the sustainability of its activity. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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7.1. Respect for the environment 7.2. CLH Group environmental and its resources management policy

The activities of the CLH Group have little The CLH Group environmental policy has a As part of its sustainable development strategy, environmental impact, as the transportation of broad field of application: it is used from the the CLH Group includes criteria related to the oil products is largely carried out using its outset of any project, through environmental environment in all its activities with the aim of extensive pipeline network. impact studies (which influence the entire preventing damage to people and property, and development and decision-making process) minimizing environmental impact and effects on The company also has an environmental policy with the aim of correcting or reducing possible climate change, by respecting biodiversity and that is part of its sustainable development future environmental impacts. In this respect, the social environment. These activities include: strategy. Manuals and procedures are therefore the CLH Group studies diferent routes, used in order to control all aspects of its • supplies locations and possible alternatives before industrial activity and contribute towards starting a new project and selects the one with • transportation (basically through the pipeline achieving a top level proactive culture for the least impact. network; other methods also), protection of the environment. In addition to the preliminary study carried out • receipt, storage and dispatch of fuels, before starting any building work, full • fuel supply to shipping vessels, monitoring during execution is also provided for, applying internal procedures for control of • storage, transportation and supply of fuels contractors. This allows the use of corrective and packaged lubricants to aircraft. measures for making it possible to minimize their impact. More specifically, when pipeline construction work is completed, the land is suitably restored to its original state, replanting the affected area with vegetable cover. What is more, subsequent controls are carried out in order to check on and guarantee that the measures adopted are working properly. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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This commitment is reflected in the 11 Also in 2010, the CLH Group carried out 7.2.1. Innovation projects principles that form its environmental environmental controls for “monitoring” the management policy. These principles have been environmental authorizations and permits at its An aspect that stands out in the Innovation and included in the CLH Group Environmental facilities in the Autonomous Region of Catalonia sustainable development policy of the Group is Management System since 2006. in accordance with autonomous regional the continuous search for the best available environmental legislation (for the facilities in environmental techniques applicable to the The Environmental Management System Lleida, Girona, Barcelona and Tarragona and the company’s activities. For this reason, a series of establishes the CLH Group Environmental El Prat and Gerona airport facilities). R&D&i activities and projects have started, Management Policy and the rules and among which the following can be highlighted: procedures that implement it and guarantee its On the other hand, the company has carried out fulfilment, all of which is in accordance with different projects of environmental interest, one • Research and development of microbiological current legislation, the company’s corporate of the most important being the adaptation of procedures for soil decontamination, with a aims and its environmental commitment. several storage facilities for introducing the view to equipping CLH with guidelines, blending of gasoline with bioethanol into the microbiological tools and biotechnological In July 2008, the CLH Group obtained national logistics system. products that have been tested and can be certification in the ISO 14001 standard for its used in its forthcoming land clean-up works Environmental Management System as a The CLH Group received the following and make it possible for the recovery of its guarantee for the effective application of the accreditations in 2010 in recognition of the hydrocarbon-polluted sites to be done more principles included in its policy. The aim of this environmental management it had carried out: economically. system is to manage the company’s activities in • Gold Seal for Excellence in EFQM the most efficient and environmentally friendly • Study for the valuation and utilization for management, in which CLH Group way. Reaffirming continuity in environmental energy purposes of residues from tank environmental management formed an management, a second follow-up audit was bottom cleaning, with the aim of minimizing important part of the report. carried out during 2010 and the certificate was managed waste and using it as additional renewed. • Second prize in the Autonomous Region of fuel. Madrid’s Environment 2010 awards, given by the Madrid Chamber of Commerce for the environmental management carried out by the company in the Autonomous Region of Madrid. • ‘Madrid Excelente’ quality certification in which the environmental management of the Group at the facilities in Madrid is also highlighted. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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7.3. Environmental costs and 7.4. Environmental indicators investments 7.4.1. Direct energy consumption During 2010, the CLH Group invested 13,857 bioethanol for blending with gasolines at million euros in various environmental projects, several facilities. The company’s direct consumption of energy which represents an increase of 75% On the other hand, the current costs borne in during 2010, resulting from transportation compared with 2009. Investments regarding 2010 by the CLH Group in underground water activities and heating steam boilers, amounted environmental items were mainly spent on: and soil remediation activities amounted to 1.9 to 484,079 gigajoules, which represents an installation of motorized valves and leak million euros due to the project from previuos increase of 10.35% compared with 2009. detectors in the pipeline, as well as pipe section years that ended in March. replacements and, in general, improvements for This increase is due to the fact that a new guaranteeing its integrity; adaptation of the tanker with larger capacity has been brought water networks and systems for effluent into service for transporting fuel. treatment and control and temporary storage of waste, prevention of soil contamination at the storage facilities and the introduction of

CLH Group Evolution of environmental investments CLH Group Expenditure on remediation of underground CLH Group Direct Energy Consumption (Millions of euros) water and soils (Millions of euros) (Gigajoules/year)

16 7 500,000 484,079 6.5 13.9 443,607 14 6 438,663 400,000 12 5 10 4 300,000 8 7.9 3.4 3 6 200,000 4.8 2 1.9 4 100,000 2 1

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7.4.2. Indirect energy consumption the installation of private electricity meters in 7.4.3. Water consumption each of the pipeline pumps and integration of Indirect consumption of energy during 2010 the information into the PLC and Scada. In The company only uses water in its operations represents a reduction of 1.4% compared with this way, the dispatching operator knows for sanitary purposes, for generating steam 2009. what the energy consumption of the and in testing fire-fighting systems. Water consumption in 2010 amounted to Savings in indirect energy consumption were operations he carries out is, besides which a 165,590 m3, representing a decrease of 13% achieved thanks to the following initiatives: subsequent analysis of the pumping modes can be made using real data. compared with 2009(1). • Different types of operation depending on On the other hand, the CLH Group only carries refinery and import delivery plans. • Improved pipeline pumping planning: energy efficiency criteria are followed in all pipeline out underground water harnessing at facilities • Improvement in the metering of pump pumping schedules in order to minimize that fall outside the area covered by municipal consumption in the pipeline: completion of energy consumption. Endeavours are made water supply networks. The use of water to keep consumption stable (the most collection is limited to sanitary purposes, and is efficient option from the energy point of equivalent to a very small collection of water view) and additive (flow enhancer, that that does not affect the local hydrodynamics. CLH Group indirect energy consumption reduces friction of the product as it travels (Gigajoules/year) through the pipe) is injected at the most 1,200,000 appropriate points along the pipeline route. 1,004,045 1,000,000 945,321 932,269 • Use of frequency changers in the pipeline 800,000 pumping sets which optimize electricity

600,000 consumption both in terms of operation in continuous cycles and in start-up operations. 400,000

200,000 • Solar energy is used for supplying line valves in the pipeline. This has been done by 0 introducing the necessary equipment for 2008 2009 2010 (1) supplying six line valves with solar energy in This information doesn´t include the consumptions of S.F. Albuixech; S.F. La Coruña; S.F. San Roque; A.F. Badajoz; the pipeline layout route. This is the first step A.F. Córdoba; A.F. La Rioja; A.F. Mahón; A.F. Son Bonet; for studying the feasibility of supplying power A.F. Torrejón; A.F. Vigo; P.F. Adamuz; P.F. Almodóvar; P.F. Ariza; P.F. Ballobar; P.F. Coria; P.F. Mora de Toledo; P.F. Muskiz; to the Group’s facilities by means of P.F. Palencia; P.F. Poblete; P.F. Palleja; P.F. San Adrián; renewable energies. P.F. Sta Perpetua. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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7.4.4. Emissions released into the • The emission of particles in suspension atmosphere amounted to 21.9 tons, which represents an increase of 15% compared with 2009. The emissions into the atmosphere that are generated by the CLH Group are extremely • The emission of NOx amounted to 339 tons, limited, as it does not carry out any which shows an increase of 16% compared manufacturing or energy generation processes. with 2009. Besides this, the CLH Group is carrying out a number of activities aimed at minimizing and controlling emissions of volatile organic NOx emission SOx emission compounds (VOCs) due to the storage and (tons) (tons) loading of gasolines. 350 400 339 The main cause of emissions of SOx, NOx, 351 300 296 CO2, CH4 and particles in suspension is internal 300 303 272 290 combustion engines, both stationary and in the 200 vehicle fleet. The emissions arising from fuel 250 consumption in the tankers that are chartered 100 by the company, and the steam boilers used for 200 0 heating the heavy fuel oil stored at the 2008 2009 2010 2008 2009 2010 Barcelona, Cartagena, Huelva, Algeciras and Gijón facilities, are also considered. Volatile Organic Compound emission Particle emission The main data referring to 2010 were the (tons) (tons) following: 1,000 25 • The emission of SOx was 351 tons, which is 817 21.9 800 762 20 19 19 an increase of 28% compared with 2009. 720 600 15 • The emission of VOCs amounted to 720 400 10 tons, which shows a reduction of 5% compared with 2009. 200 5

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This increase is due to the fact that a new Each facility and work centre segregates all the Each year, the use of the company’s pipeline tanker with larger capacity has been brought waste generated according to its nature, and it network for transporting fuel avoids 400,000 into service for transporting fuel. is stored in areas specially prepared for the tons of CO2 being released into the purpose until it can be delivered to an atmosphere, these emissions being the authorized manager. equivalent of such transport being carried out 7.5. Waste management with the use of tank trucks. Besides documenting each type of waste that The CLH Group produces very limited is delivered to an authorized manager, the A clear aim in the CLH Group’s environmental quantities of hazardous waste because it does facilities submit an Annual Hazardous Waste management is to improve energy efficiency in not carry out any manufacturing or materials Producer Statement to the Environment Board the transportation activities it carries out using transformation processes. The waste that is of the appropriate autonomous region. This pipelines. The CLH Group adds the latest produced is basically the result of periodic statement specifies the amount of hazardous additives for product transportation via pipeline, cleaning of the storage tanks and the waste produced, its nature, the final destination thereby reducing friction as far as possible. The hydrocarbon-polluted water treatment systems. and the name of the authorized manager. effect of this is to increase the pipeline’s transportation capacity, reduce the energy In 2010, the CLH Group managed 3,454 tons consumed in pumping the products, and as a of hazardous waste and 97 tons of non- result, the aim of reducing greenhouse gas hazardous waste, making a total of 3,551 tons emissions is tackled. of waste.

7.6. Climate change

The CLH Group assumes responsibility for and a commitment to making a continuous effort to reduce greenhouse gas emissions. The company’s main greenhouse gas emissions

refer to CO2, NOx and CH4, which are caused by the use of fossil fuels in the different internal combustion engines. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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The CLH Group CO2 emissions during 2010 The CLH Group has started up an Energy Besides this, the automatic operations control totalled 34,443 tons, which is 11% more than Savings and Efficiency Plan to reduce the use system (remotely controlled pipeline valve in 2009. Fluctuations in CO2 emissions are of natural resources and to continue developing actuators) has been optimized by installing a essentially due to variations in annual product the use of more environmentally friendly more efficient version, thereby achieving deliveries and the different types of operation technologies and processes. greater reliability in fuel reception operations by according to refinery and import delivery plans. pipeline in addition to energy savings. This plan, which started being applied in 2009 On the other hand, 2010 saw a continuation of and is expected to continue in force until 2013, Other measures provided for in the Energy the investment process for adapting the aims to bring down the company’s electricity Savings and Efficiency Plan refer to the logistics and operational network of the consumption by 13% and avoid 21,700 tons of improvement of lighting efficiency in the company for the storage and distribution of CO2 emissions being released into the storage plants. Here, the luminaires currently in biofuels (bioethanol) in accordance with the atmosphere. use will be replaced with low-consumption aims provided for Renewable Energies. elements. One of the most important projects planned is the construction of a new supply system to Work has also started on installing new systems meet the needs of Madrid-Barajas airport from for regulating voltage in the exterior lighting the storage facility in Torrejón de Ardoz systems of the company’s facilities, this being (Madrid). This building work will make it expected to bring savings in the electricity possible to eliminate the storage tanks at the consumed by those lighting systems and an airport and shorten the route currently taken by improvement in any possible light pollution the fuel until it reaches Barajas. caused by the present systems. Similarly, work has started on putting new higher performance motors and pumps into the pipeline pumping stations and in the loading area pumping systems. The company is also installing frequency changers in the tank truck loading area supply systems. These devices make it possible to adjust the power of the pumps to product flow requirements, instead of pumping at a fixed rate, which will mean a saving in the energy consumption of these pieces of equipment. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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The CLH Group has carried out an analysis for • The significant increase in temperature could 7.7. Dumping management identifying the risks and opportunities arising give rise to a decrease in the consumption of out of climate change, and has drawn the heating oil with the resulting reduction in Any dumping generated by the CLH Group is following conclusions: activity. very limited, since no production process generating this is carried out. The main cause • The gradual inclusion of other energies for of dumping is the rainwater that collects in the 7.6.1. Risks transport, such as hydrogen, natural gas, different drainage systems in the facilities batteries and solar energy may give rise to • Restrictions on the use of petroleum-based depending on zonal sensitivity. reduced consumption of oil products. fuels are likely to bring with them an increase The water networks in the facilities are suitably in the use of biofuels, and so the CLH Group segregated (sewage water, rainwater and water must invest heavily in adapting its facilities to 7.6.2. Opportunities that is likely to contain traces of hydrocarbons). these new products. • The use of biofuels is generating a demand The facilities have a dissolved hydrocarbons for facilities in which to store them. This may continuous measurement control system that mean a business opportunity for CLH. redirects the analysed water back again to the treatment system if it fails to comply with the • The creation of new biofuel blending services specified criteria. Besides this, the closed circuit makes the offer of services provided by CLH purge systems that have been installed an attractive one, thereby encouraging considerably minimize the pollutant load that is agreement between biodiesel producers and sent to the treatment systems. oil operators.

CLH Group CO2 emissions (Tons)

35,000 34,443 31,452 31,015 30,000

25,000

20,000

15,000

10,000

5,000

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This means that the CLH Group is able to 7.8. Protection of soils and ensure that waste water is suitably treated so underground water as to comply at all times with the parameters stated in each facility’s dumping permit. The protection of soils and underground water Besides this, the plan has resulted in the Most of the waste water that comes from the at the CLH Group facilities is one of the top CLH Group carrying out environmental recovery CLH Group facilities goes to the sewers in corporate priorities. projects, whenever necessary, on land where it has carried out activities or that may have been municipal drainage networks. The The CLH Group also carries out an exhaustive affected by spills: administration in question carries out joint control of any product spill and is ready for studies with CLH on feasibility and the taking immediate clean-up action if there has • Somorrostro: Currently in the process of consequences that dumping from such facilities been any infiltration of the subsoil. landscape recovery of the land according to might have. When these studies reveal that the project approved by the Coasts On the other hand, since 2003 the company there are no risks or that the water is Department. acceptable for the ecosystems in the area, the has been developing a research plan designed administration grants CLH the appropriate to provide detailed information about the • Santurce: Currently under way, under the dumping permits, specifying a series of environmental situation of the land occupied by supervision of the Basque Country’s conditions and analyses to be performed. CLH each of its facilities Environmental Authority. takes samples and carries out the • Mahón. Work is expected to start during corresponding analyses in accordance with the 2011. dumping permit that has been obtained. • Burgos. Work is expected to start during 2011. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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Soil contamination prevention 1. Tank-filling control systems to prevent 6. All underground tanks that are installed systems accidental overfill. have double walls. 2. Regular checks on the tightness of 7. There is a network of piezometers for underground tanks and ground-level tank controlling and monitoring underground bottoms in order to guard against and water at all storage facilities. detect possible leaks in plenty of time. 3. Waterproofing of areas where accidental spills are likely to occur (inside spill walls and pump rooms). 4. Computer system for control of pipeline leaks. 5. High density polythene sheeting is installed on the base and beneath the bottom of all newly built ground-level tanks. In that way, the soil is made impervious to possible breakages and possible leaks can be detected immediately, this forming a modern, efficient system for detecting leaks in tank bottoms. CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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7.9. Management of biodiversity

The CLH Group carries out environmental Ibiza in order to temper the visual impact of the The variable volume (dispersion distance) is impact studies in all its projects and facilities located there used to identify the proximity of an HCA construction work, assessing various layout along the length of the pipeline. Proximity is The CLH Group commitment to the protection routes and alternatives so that all building work based on the maximum volume that can of biodiversity also makes itself evident through has the least possible environmental potentially be spilled at a given point as a the dissemination of Spain’s biological wealth. repercussions. result of an accident. All pipeline segments For several years now it has been publishing a that are included in an HCA have an area of During 2010, the Statements of Environmental series of books that make it possible for the direct impact and another of indirect impact Impact for the following projects were reader to get to know some of the special according to the stipulations of the boundary published: features of Spain’s landscapes. analysis, and the coordinates of these • Expansion of capacity in the Almódovar Environmentally sensitive areas are defined in indirect impact points must therefore be storage facility and the Torrejón de Ardoz- the chapter entitled “Plan for Identifying High taken into account and included in the Barajas Airport pipeline. Consequence Areas (HCA)” of the Pipeline databases. Integrity Plan. The CLH Group uses specific risk • Besides this, the following Environmental • Analysis of transport: the pipeline analysis software for this in order to determine Impact Studies are being processed: segments are assessed in order to determine the affected area that is associated with Expansion of the Rivabellosa storage facility. whether the contents of a breakage might possible spills. The types of HCA impact and the possibly migrate towards an HCA. Specific • New facility at the port of Bilbao. assessments to be performed are as follows: considerations are made for the two existing During 2010, the CLH Group continued with • Identification of direct impact areas: transport mechanisms, by land or water. The implementation of the “1,000 Trees Campaign” segments of the pipeline that are physically three specific analyses of transport include: project, which has been carried out at the located inside an HCA. analysis of the terrain, direct hydrographic company’s facilities. The project provides for basin analysis and indirect hydrographical • Identification of indirect impact areas: a the planting of native trees according to the basin analysis. boundary analysis is carried out using location of each facility. information about the pipeline flow, valve Each species was selected according to closing times, spacing between valves and scientific criteria, taking into consideration the elevation profiles, in order to calculate the weather conditions in the surrounding area. maximum spill volume that could be Besides this, the project has included the generated. creation of green ‘screens’ in Motril, León and CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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7.10. Impacts deriving from The CLH Group adheres to the policy of product transportation reporting all spills. When an accidental spill occurs, the company immediately activates the At the present time, the CLH facilities are measures necessary for reducing the effects it mainly supplied through the oil pipeline might have on the environment, studying the network, which is the safest and most type of terrain and its characteristics and environmentally-friendly means of transport, establishing the most suitable system for clean- which has made it possible for CO emissions 2 up and recovery, so that it can be returned to its to be reduced considerably since the use of original state in the shortest possible time. other alternative means of transport is minimized. CO2 emissions caused by CLH Group road transport operations in 2010 amounted to 3,996 tons, representing a reduction of 32% compared with 2009. This decrease is due to the decline in activity (refuelling units, movement of light equipment and movement of tank trucks).

CLH Group CO2 emissions in road transport (tons)

7,000

6,000 5,845

5,000

4,000 3,996 2008 2009 2010 3,488 3,000 Spills with environmental affection* 8 3 1 2,000

*In 2010, the CLH Group modified the criteria for recording spills in accordance with practices in the sector, these being spills that affect 1,000 the environment and involve over 0.2 tons of oil. Therefore, and to make comparability between the last three years possible, the data for 0 spills that occurred in 2008 and 2009 have been recalculated according to these new criteria. 2008 2009 2010 CLH Corporate Social Responsibility Report 2010 Commitment to the Environment

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Practical case

Research and development CLH is developing guidelines, The results obtained will provide the of microbiological microbiological tools and biotechnological Company with a new, more environmentally products that have been tested and can be friendly clean-up methodology for assessing procedures for soil used in its forthcoming clean-up works, and reusing the treated materials, that is in decontamination allowing the recovery of its sites that have line with European Waste Management affected by hydrocarbon pollution. Directives. This project will last over a period of two years in order to develop bioremediation and bioaugmentation processes for soil decontamination on a larger scale than in a laboratory. An experimental plant is being built at the Tarragona Storage Facility for this purpose, and different types of soils and contaminants will be treated there using different methodologies. 84

External verification report CLH Corporate Social Responsibility Report 2010 External verification report

85 86

GRI contents index CLH Corporate Social Responsibility Report 2010 GRI contents index

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GRI contents index

Standard disclosures Part I: Profile Disclosures

If applicable, Profile Cross-reference/ indicate the part Reason for isclosure Description Reported Direct answer not reported omission Explanation

1. Strategy and Analysis 1,1 Statement from the most senior decision-maker of Fully 5-6 the organization. 1,2 Description of key impacts, risks, and opportunities. Fully 5-6, 22-23, 28-35, 37-38, 43-47, 70-72. Graphics on pages 18, 24, 36, 50, 64, 70

2. Organizational Profile 2,1 Name of the organization. Fully 1 2,2 Primary brands, products, and/or services. Fully 16-17, 37-38 2,3 Operational structure of the organization, including Fully 15 main divisions, operating companies, subsidiaries, and joint ventures. 2,4 Location of organization's headquarters. Fully 1 2,5 Number of countries where the organization Fully The CLH Group carries out operates, and names of countries with either major its activities exclusively in operations or that are specifically relevant to the Spain. sustainability issues covered in the report. 2,6 Nature of ownership and legal form. Fully 15-17 2,7 Markets served (including geographic breakdown, Fully 15-17 sectors served, and types of customers/ beneficiaries). 2,8 Scale of the reporting organization. Fully 7 CLH Corporate Social Responsibility Report 2010 GRI contents index

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If applicable, Profile Cross-reference/ indicate the part Reason for isclosure Description Reported Direct answer not reported omission Explanation

2,9 Significant changes during the reporting period Fully 8-12, 15 regarding size, structure, or ownership. 2,10 Awards received in the reporting period. Fully 8-12,15

3. Report Parameters 3,1 Reporting period (e.g., fiscal/calendar year) for Fully 108-113 information provided. 3,2 Date of most recent previous report (if any). Fully 5, 6, 108-113 3,3 Reporting cycle (annual, biennial, etc.) Fully 108-113 3,4 Contact point for questions regarding the report or Fully 1 its contents. 3,5 Process for defining report content. Fully 108-113 3,6 Boundary of the report (e.g., countries, divisions, Fully 108-113 subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. 3,7 State any specific limitations on the scope or Fully 108-113 boundary of the report (see completeness principle for explanation of scope). 3,8 Basis for reporting on joint ventures, subsidiaries, Fully 108-113 leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. 3,9 Data measurement techniques and the bases of Fully 108-113 calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. CLH Corporate Social Responsibility Report 2010 GRI contents index

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If applicable, Profile Cross-reference/ indicate the part Reason for isclosure Description Reported Direct answer not reported omission Explanation

3,10 Explanation of the effect of any re-statements of Fully 108-113 information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/ acquisitions, change of base years/periods, nature of business, measurement methods). 3,11 Significant changes from previous reporting Fully 108-113 periods in the scope, boundary, or measurement methods applied in the report. 3,12 Table identifying the location of the Standard Fully 86-107 Disclosures in the report. 3,13 Policy and current practice with regard to seeking Fully 84-85 external assurance for the report.

4. Governance, Commitments, and Engagement 4,1 Governance structure of the organization, including Fully 28-32 committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. 4,2 Indicate whether the Chair of the highest Fully 93-95 Annual Corporate governance body is also an executive officer. Governance Report CLH 2010 4,3 For organizations that have a unitary board Fully 80-82 Annual Corporate structure, state the number of members of the Governance Report highest governance body that are independent CLH 2010 and/or non-executive members. 4,4 Mechanisms for shareholders and employees to Fully 28-32, 59 provide recommendations or direction to the highest governance body. 4,5 Linkage between compensation for members of Fully 119-123 Annual Corporate the highest governance body, senior managers, and Governance Report executives (including departure arrangements), and CLH 2010 the organization's performance (including social and environmental performance). CLH Corporate Social Responsibility Report 2010 GRI contents index

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If applicable, Profile Cross-reference/ indicate the part Reason for isclosure Description Reported Direct answer not reported omission Explanation

4,6 Processes in place for the highest governance Fully Any conflicts of interest that body to ensure conflicts of interest are avoided. may possibly arise in the highest governance body are regulated through the internal regulations for conduct on matters relating to the securities market and through the Board of Directors Regulations. 4,7 Process for determining the qualifications and Fully 91-93, 105-106 Annual expertise of the members of the highest Corporate Governance governance body for guiding the organization’s Report CLH 2010 strategy on economic, environmental, and social topics. 4,8 Internally developed statements of mission or Fully 13-14 values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 4,9 Procedures of the highest governance body for Fully 24-26, 33-35, 70-72, 76-78 overseeing the organization's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 4,10 Processes for evaluating the highest governance Fully 91-93 Annual Corporate body's own performance, particularly with respect Governance Report to economic, environmental, and social CLH 2010 performance. 4,11 Explanation of whether and how the precautionary Fully 108-113 approach or principle is addressed by the organization. 4,12 Externally developed economic, environmental, and Fully 25-26, 71-72 social charters, principles, or other initiatives to which the organization subscribes or endorses. CLH Corporate Social Responsibility Report 2010 GRI contents index

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If applicable, Profile Cross-reference/ indicate the part Reason for isclosure Description Reported Direct answer not reported omission Explanation

4,13 Memberships in associations (such as industry Fully 26-27 associations) and/or national/international advocacy organizations in which the organization: • Has positions in governance bodies; • Participates in projects or committees; • Provides substantive funding beyond routine membership dues; or • Views membership as strategic. 4,14 List of stakeholder groups engaged by the Fully 25 organization. 4,15 Basis for identification and selection of Not Does not exist The CLH Group carried out a process of stakeholders with whom to engage. consultation with its stakeholders in the framework of the preparation of the report for the stated year. In 2011, the CLH Group is updating its CSR Outline Plan, and so it is hoped that an answer can be given to this indicator 4,16 Approaches to stakeholder engagement, including Fully 25-27 frequency of engagement by type and by stakeholder group. 4,17 Key topics and concerns that have been raised Fully 26-27, 108-113 through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. CLH Corporate Social Responsibility Report 2010 GRI contents index

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Standard Disclosures Part II: Disclosures on Management Approach (DMAs)

If applicable, To be Cross-reference/ indicate the part Reason for reported G3 DMA Description Reported Direct answer not reported omission Explanation in

DMA EC Disclosure on Management Approach EC Fully 19 Aspects Economic performance Fully 19-21 Market presence Fully 16-17 Indirect economic impacts Fully 21

DMA EN Disclosure on Management Approach EN Fully 71 Aspects Materials Not Not material CLH is a service company that engages in the storage, transportation and distribution of oil products. Its activity does not involve production processes and, as a result, does not involve raw materials or packaging. Energy Fully 73-73 Water Fully 74 Biodiversity Fully 81 Emissions, effluents and waste Fully 75 ,78-79, 82 Products and services Fully 71-72 Compliance Fully 71-72 Transport Fully 82 Overall Fully 71 CLH Corporate Social Responsibility Report 2010 GRI contents index

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If applicable, To be Cross-reference/ indicate the part Reason for reported G3 DMA Description Reported Direct answer not reported omission Explanation in

DMA LA Disclosure on Management Approach LA Fully 50 Aspects Employment Fully 51-54 Labor/management relations Fully 51-54 Occupational health and safety Fully 60-63 Training and education Fully 56-58 Diversity and equal opportunity Fully 52, 54-55

DMA HR Disclosure on Management Approach HR Fully 23, 51 Aspects Investment and procurement practices Fully 22-23 Non-discrimination Fully 51 Freedom of association and collective bargaining Fully 59 Child labor Fully 51 Forced and compulsory labor Fully 51 Security practices Fully 51 Indigenous rights Fully 51

DMA SO Disclosure on Management Approach SO Fully 35, 65 Aspects Community Fully 65 Corruption Fully 35 Public policy Fully 32 Anti-competitive behavior Fully 35 Compliance Fully 35

DMA PR Disclosure on Management Approach PR Fully 49 Aspects Customer health and safety Fully 49 Product and service labelling Fully 49 Marketing communications Fully 49 Customer privacy Fully 49 Compliance Fully 49 CLH Corporate Social Responsibility Report 2010 GRI contents index

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Standard disclosures Part III: Performance Indicators

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Economic

Economic performance EC1 Direct economic value generated and distributed, Fully 19, 20 including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. EC2 Financial implications and other risks and Partially 76-78 Quantitative estimate Not available This information was not available 2013 opportunities for the organization's activities due to of financial at the time of preparing the Report. climate change. implications EC3 Coverage of the organization's defined benefit plan Partially 54 Estimated amount in Not available This information was not available 2013 obligations. pension payment at the time of preparing the Report. obligations. EC4 Significant financial assistance received from Fully The CLH Group did not government. receive any significant financial assistance from the Spanish government during 2010.

Market presence EC5 Range of ratios of standard entry level wage Fully 53 compared to local minimum wage at significant locations of operation. EC6 Policy, practices, and proportion of spending on Fully 22-23 locally-based suppliers at significant locations of operation. EC7 Procedures for local hiring and proportion of senior Fully 54 management hired from the local community at significant locations of operation. CLH Corporate Social Responsibility Report 2010 GRI contents index

9/19 95

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Indirect economic impacts EC8 Development and impact of infrastructure Fully 65-66 investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. EC9 Understanding and describing significant indirect Fully 21 economic impacts, including the extent of impacts.

Environmental

Materials EN1 Materials used by weight or volume. Not Not applicable CLH is a service company that engages in the storage, transportation and distribution of oil products. Its activity does not involve production processes and, as a result, does not involve raw materials or packaging. EN2 Percentage of materials used that are recycled Not Not applicable CLH is a service company that input materials. engages in the storage, transportation and distribution of oil products. Its activity does not involve production processes and, as a result, does not involve raw materials or packaging.

Energy EN3 Direct energy consumption by primary energy Fully 73 source. Direct energy consumption corresponds to consumption of fossil fuels in transportation and boiler heating activities. CLH Corporate Social Responsibility Report 2010 GRI contents index

10/19 96

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

EN4 Indirect energy consumption by primary source. Fully 74 Electricity production sources correspond to the national energy mix. EN5 Energy saved due to conservation and efficiency Not Not available CLH has developed initiatives for 2013 improvements. reducing energy consumption in its facilities but does not yet have a method that enables it to quantify the reductions achieved EN6 Initiatives to provide energy-efficient or renewable Partially 73-74 Reductions achieved. Not available CLH has developed initiatives for 2013 energy based products and services, and energy efficiency in its facilities but reductions in energy requirements as a result of does not yet have a method that these initiatives. enables it to quantify the reductions achieved EN7 Initiatives to reduce indirect energy consumption Partially 74 Reductions achieved. Not available CLH has developed initiatives for 2013 and reductions achieved. energy efficiency in its facilities but does not yet have a method that enables it to quantify the reductions achieved.

Water EN8 Total water withdrawal by source. Fully 74 EN9 Water sources significantly affected by withdrawal Fully 74 of water. EN10 Percentage and total volume of water recycled and Fully CLH does not use recycled reused. water in its facilities

Biodiversity EN11 Location and size of land owned, leased, managed Partially 79-81 Neither size nor Not available This information is not available at 2014 in, or adjacent to, protected areas and areas of high location regarding the time of preparing the Report biodiversity value outside protected areas. protected areas nor characterization of the affected biodiversity. CLH Corporate Social Responsibility Report 2010 GRI contents index

11/19 97

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

EN12 Description of significant impacts of activities, Fully 79-81 products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN13 Habitats protected or restored. Partially 80-81 Neither size of Not available 2012 restored land nor collaborations with third parties EN14 Strategies, current actions, and future plans for Fully 80-81 managing impacts on biodiversity. EN15 Number of IUCN Red List species and national Not conservation list species with habitats in areas affected by operations, by level of extinction risk.

Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions Fully 75 by weight. EN17 Other relevant indirect greenhouse gas emissions Not Not available This information is not available as 2013 by weight. at the date of preparing the Report. EN18 Initiatives to reduce greenhouse gas emissions and Partially 76-77 Reductions achieved. Not available CLH has developed initiatives for 2014 reductions achieved. reducing greenhouse gas emissions but does not yet have a method that enables it to quantify the reductions achieved. EN19 Emissions of ozone-depleting substances by Not Not available This information is not available as 2012 weight. at the date of preparing the Report. EN20 NOx, SOx, and other significant air emissions by Partially 75 COP, CAP Not material Significant emission parameters are type and weight. reported given the activity of CLH. EN21 Total water discharge by quality and destination. Fully 78-79 EN22 Total weight of waste by type and disposal method. Partially 76 Breakdown of the Not applicable The waste generated at CLH final destination of facilities is delivered to an the waste generated. authorized waste manager. EN23 Total number and volume of significant spills. Fully 82 CLH Corporate Social Responsibility Report 2010 GRI contents index

12/19 98

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

EN24 Weight of transported, imported, exported, or Fully CLH does not transport treated waste deemed hazardous under the terms hazardous waste, as all the of the Basel Convention Annex I, II, III, and VIII, and waste generated at its percentage of transported waste shipped facilities is delivered to an internationally. authorized waste manager. EN25 Identity, size, protected status, and biodiversity Fully CLH is a service company value of water bodies and related habitats that engages in the storage, significantly affected by the reporting organization's transportation and distribution discharges of water and runoff. of oil products. Its activity does not involve production processes and, as a result, it does not carry out significant discharges of water.

Products and services EN26 Initiatives to mitigate environmental impacts of Partially 71, 75-76, 78-79 No impacts related to Not material Given the activity of CLH, the products and services, and extent of impact noise, use of information not reported does not mitigation. materials, are mean that it is not a significant reported. impact EN27 Percentage of products sold and their packaging Not Not applicable CLH is a service company that materials that are reclaimed by category. engages in the storage, transportation and distributiion of oil products. Its activity does not involve production processes and, as a result, it does not use raw materials or packaging.

Compliance EN28 Monetary value of significant fines and total Fully During 2010 neither fines number of non-monetary sanctions for non- nor significant sanctions have compliance with environmental laws and been produced. regulations. CLH Corporate Social Responsibility Report 2010 GRI contents index

13/19 99

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Transport EN29 Significant environmental impacts of transporting Partially 82 Information arising Not available At the time of preparing the Report, 2013 products and other goods and materials used for from transporting no information was available on the organization's operations, and transporting members of the impacts arising from transporting members of the workforce. workforce is not members of the CLH workforce. reported.

Overall EN30 Total environmental protection expenditures and Fully 73 investments by type.

Social: Labor Practices and Decent Work

Employment LA1 Total workforce by employment type, employment Fully 51, 53-54 contract, and region. LA2 Total number and rate of employee turnover by age Fully 51-53 group, gender, and region. LA3 Benefits provided to full-time employees that are Fully 54 not provided to temporary or part-time employees, by major operations.

Labor/management relations LA4 Percentage of employees covered by collective Fully 59 bargaining agreements. CLH Corporate Social Responsibility Report 2010 GRI contents index

14/19 100

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

LA5 Minimum notice period(s) regarding significant Fully In accordance with articles operational changes, including whether it is 13, 16, 49, 50 and 74.4 of its specified in collective agreements. collective bargaining agreement, CLH undertakes to inform the members of its workforce, or their representatives, of the implementation of any organizational changes that may affect them. The minimum notice periods vary according to the relevance of the measure adopted.

Occupational health and safety LA6 Percentage of total workforce represented in Fully 63 formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. LA7 Rates of injury, occupational diseases, lost days, Partially 61 Accident rates Not available At the time of preparing the Report, 2014 and absenteeism, and number of work-related referring to insufficient information was fatalities by region. contractors. available for answering this indicator for contractors. LA8 Education, training, counseling, prevention, and Fully 63 risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. LA9 Health and safety topics covered in formal Fully 63 agreements with trade unions.

Training and education LA10 Average hours of training per year per employee by Fully 56 employee category. CLH Corporate Social Responsibility Report 2010 GRI contents index

15/19 101

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

LA11 Programs for skills management and lifelong Fully 56, 57 learning that support the continued employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular Fully 57 performance and career development reviews.

Diversity and equal opportunity LA13 Composition of governance bodies and breakdown Partially 52 Minorities and age Not available This indicator is not available as at 2014 of employees per category according to gender, group the date of preparing this Report as age group, minority group membership, and other there are no formal procedures for indicators of diversity. obtaining this information LA14 Ratio of basic salary of men to women by Not Proprietary employee category. information

Social: Human Rights

Diversity and equal opportunity HR1 Percentage and total number of significant Not Not available The CLH Group has drawn up a 2012 investment agreements that include human rights Corporate Responsibility 2007- clauses or that have undergone human rights 2011 Outline Plan that includes the screening. courses of action designed to provide an answer to this indicator. HR2 Percentage of significant suppliers and contractors Fully 23 that have undergone screening on human rights and actions taken. HR3 Total hours of employee training on policies and Fully There is no training module procedures concerning aspects of human rights that takes these matters into that are relevant to operations, including the consideration although their percentage of employees trained. inclusion at a future date is not ruled out, since the CLH Group carries out its activities in Spain, a country where the risk of violation of human rights is not significant. CLH Corporate Social Responsibility Report 2010 GRI contents index

16/19 102

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Non-discrimination HR4 Total number of incidents of discrimination and Fully 51 actions taken.

Freedom of association and collective bargaining HR5 Operations identified in which the right to exercise Fully 59 freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

Child labor HR6 Operations identified as having significant risk for Not Not applicable The CLH Group carries out its incidents of child labor, and measures taken to activities in Spain, a country where contribute to the elimination of child labor. the risk of child labor is not significant.

Forced and compulsory labor HR7 Operations identified as having significant risk for Not Not applicable The CLH Group carries out its incidents of forced or compulsory labor, and activities in Spain, a country where measures to contribute to the elimination of forced the risk of forced or compulsory or compulsory labor. labor is not significant.

Prácticas de seguridad HR8 Percentage of security personnel trained in the Not Not applicable CLH has no security personnel organization's policies or procedures concerning under contract in its workforce. aspects of human rights that are relevant to operations.

Derechos de los indígenas HR9 Total number of incidents of violations involving Not Not applicable The CLH Group carries out its rights of indigenous people and actions taken. activities in Spain, where properties owned by indigenous people do not exist. CLH Corporate Social Responsibility Report 2010 GRI contents index

17/19 103

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Social: Society

Community SO1 Nature, scope, and effectiveness of any programs Fully 65-66, 69 and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

Corruption SO2 Percentage and total number of business units Fully None. In 2010 CLH approved analyzed for risks related to corruption. its Code of Conduct which is applicable to members of the company's administrative and management bodies, and to all employees in the companies that form the Group. SO3 Percentage of employees trained in organization's Fully None. No training has been anti-corruption policies and procedures. given regarding the CLH Code of Conduct, as it was only approved in 2010. SO4 Actions taken in response to incidents of Fully No incldents of corruption corruption. were recorded during 2010.

Public policy SO5 Public policy positions and participation in public Fully 32 policy development and lobbying. SO6 Total value of financial and in-kind contributions to Fully The CLH Group has not political parties, politicians, and related institutions made any financial or in-kind by country. contributions to political parties or related institutions CLH Corporate Social Responsibility Report 2010 GRI contents index

18/19 104

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Anti-competitive behavior SO7 Total number of legal actions for anti-competitive Fully In 2010, the CLH Group has behavior, anti-trust, and monopoly practices and not been involved in any their outcomes. lawsuit for causes related to monopoly practices and anti-competitive behavior.

Compliance SO8 Monetary value of significant fines and total Fully 35 number of non-monetary sanctions for non- compliance with laws and regulations.

Social: Product Responsibility

Customer health and safety PR1 Life cycle stages in which health and safety Fully 41-47 impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. PR2 Total number of incidents of non-compliance with Fully 48 regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Product and service labelling PR3 Type of product and service information required by Fully 46 procedures, and percentage of significant products and services subject to such information requirements. PR4 Total number of incidents of non-compliance with Fully 49 regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. PR5 Practices related to customer satisfaction, including Fully 46-47 results of surveys measuring customer satisfaction. CLH Corporate Social Responsibility Report 2010 GRI contents index

19/19 105

If applicable, To be Performance Cross-reference/Direct indicate the part not Reason for reported Indicator Description Reported answer reported Omission Explanation in

Marketing communications PR6 Programs for adherence to laws, standards, and Fully 49 voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. PR7 Total number of incidents of non-compliance with Fully 49 regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Customer privacy PR8 Total number of substantiated complaints regarding Fully 49 breaches of customer privacy and losses of customer data.

Compliance PR9 Monetary value of significant fines for non- Fully During 2010 neither fines compliance with laws and regulations concerning nor significant sanctions have the provision and use of products and services. been produced. 106

How the report was prepared CLH Corporate Social Responsibility Report 2010 How the report was prepared

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How the report was prepared

The fourth CLH Group Corporate Responsibility The principles applicable to the preparation of this Report were: Report was coordinated by the Communication and Institutional Relations Management, and the main areas of the company took part in its preparation. This report was prepared in accordance with the Global Reporting Initiative (GRI) G3 Guidelines, giving details of the profile of the Timeliness organization, the management approach in each GRI principles for GRI principles for defining contents defining quality of the chapter and the performance indicators that are information considered relevant, applying the criterion of materiality to the special features of the Accuracy Balance CLH Group. Process for preparing The CLH Group and GRI have given this the CLH Group Materiality Comparability Corporate Social Corporate Responsibility Report an A+ rating. Responsibility report In addition, the company decided to obtain, through the consultancy firm KPMG, an Materiality external verification of this self declaration on Sustainability Participation Completeness Clarity context study the application of the standard and to submit it to review by the GRI.

C C+ B B+ A A+

Self declaration Corporate Social Responsibility Report 2010 External verification

GRI Review CLH Corporate Social Responsibility Report 2010 How the report was prepared

2/5 108

Principle of materiality

“Information is considered material if its • The attention paid to the various aspects of omission or distortion in a Report can Corporate Responsibility by sector influence the decisions or actions of the associations that are considered significant. interest groups of the reporting organization. • The Corporate Responsibility issues in the Materiality refers to the importance or energy sector that are most valued by the relevance that the various aspects related to media and social organizations. sustainability have for the business” In 2008 the CLH Group carried out a materiality study in order to identify relevant issues in the sphere of Corporate Analysis of materiality Responsibility. This was done by categorizing them according to their age and risk. The following aspects in particular were analysed: To maintain conduct at They require special attention, average for the sector review and constant • The importance that institutional investors adjustment

attribute to aspects related to Corporate Generalized IV III Necessary Responsibility. Material issues Emerging III Urgent • The age of the issues, determined by the To look ahead, anticipate

attention paid by companies in the sector in Maturity in information changes, source of competitive They require urgent action and which the CLH Group operates. This was advantage meticulous monitoring

done by comparing the Corporate companies in the sector Benchmark Responsibility reports of several companies Relevance (exposure) in the sector that were representative for reasons of their size and presence in sustainability indexes.

Socially Sector prescribers Social prescribers Press analysis responsible investors CLH Corporate Social Responsibility Report 2010 How the report was prepared

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The following relevant issues were identified as a result of this study:

CLH Grouping of material issues

Management of intangibles Management of our impact on the environment and our emissions CSR management Environmental management system Brand management Other emissions Climate change Corporate Governance, ethics and relations with governments Use of resources / Efficiency Relations with Governments/ Public policy/ Lobbying Ethics and integrity Safety and impact on biodiversity Corporate governance Safety/ Transport and logistics Risk management Waste/leaks/spills Biodiversity/ Land occupation Value generation Financial matters Caring for people Shareholders Attracting and retaining talent Suppliers Developing Human Capital Labour practices Quality and service to customers Health and safety Innovation Management of customer relations Relations with the community Operations/ Transport and logistics Impacts on communities Relations with interest groups CLH Corporate Social Responsibility Report 2010 How the report was prepared

4/5 110

Sustainability context is useful for the company’s interest groups. As for coverage, the relevant information regarding “The reporting organization should present its CLH and its subsidiary CLH Aviación is performance in the broadest context of included. sustainability.” This report includes the performance of the Principle of comparability CLH Group in the economic, social and environmental spheres. Among its aims, the “All aspects and information should be company has assumed the commitment to selected, compiled and disclosed in a generate value responsibly with the consistent manner so that the interest groups environment and society, and therefore this are able to analyse the changes experienced document includes the main challenges that by the organization over time and also with affect the company in relation to sustainable respect to other organizations.” development. The information has been included in a way that allows the interest groups to interpret the Principle of completeness changes experienced by the organization over time. The evolution of data in respect of the “Coverage of material indicators and aspects previous year has been included for most of the and the definition of coverage of the report indicators. must be sufficient for reflecting significant social, economic and environmental impact and for enabling the interest groups to assess the performance of the reporting organization during the period covered by the report.” The coverage and scope of the information included in this report have been clearly defined, priority has been given to the facts that are considered relevant, and all significant events occurring during 2010 have been included, without omitting any information that CLH Corporate Social Responsibility Report 2010 How the report was prepared

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Principle of balance Principle of timeliness

“The report should reflect both positive and “The information shall be presented on time negative aspects of the organization’s and following a periodic calendar so that the performance in order to permit a reasonable interest groups may adopt decisions with the assessment of its general performance.” correct information.” In order to enable the interest groups to make a The CLH Group adheres to a formal reasonable assessment, both positive and commitment to report annually to its interest negative aspects are included, while at the groups on the company’s economic, social and same time presenting an unbiased picture of environmental performance. each of the issues included in the document. Principle of reliability Principle of accuracy and clarity “The information and procedures followed in “The information contained in the report preparing the Report must be gathered, should be accurate and sufficiently detailed in recorded, compiled, analysed and presented order to enable the different interest groups to so they may be subjected to examination and assess the performance of the reporting the quality and materiality of the information organization.” established.” “The information should be stated in a comprehensible and accessible way for the interest groups who are to use the report.” Tables, charts and diagrams that help to understand the information contained in the

Report have been included. Similarly, an attempt has been made to refrain from using technical terms that may prove unfamiliar to its interest The reliability of the data included in this groups. Report has been reviewed by KPMG. 112

Glossary of terms CLH Corporate Social Responsibility Report 2010 Glossary of terms

1/2 113

AA1000: International standard whose aim is to Biodiesel: Ester obtained through the reaction Central Dispatching: Centralized control post guarantee quality in the assessment and of an alcohol with the fatty acids resulting in CLH from which the company controls dissemination of social and ethical aspects from the hydrolysis of triglycerides, many of its product transport and storage of business management as well as vegetable oils or animal fats in the operations. accountability presence of a catalyst. CO: Carbon monoxide. (http://www.accountability21.net/). Bioethanol: Alcohol made by fermenting the CO : Carbon dioxide. Additive: A substance that modifies the sugar components of plant materials; it is 2 physical or chemical characteristics of the made mostly from sugar and starch crops. Dispenser: Mobile unit designed especially for product to which it is added. supplying fuel to aircraft at the airports Biofuel: Fuel made from organic material or where there are hydrant networks. ADR: European Agreement concerning the biomass. It includes primary energy International Carriage of Dangerous sources such as wood, and also by- Double-hulled vessel: A tanker in which the Goods by Road. product fuels such as methanol, ethanol bottom and sides of the cargo tanks are and biogas which come from primary separated from the bottom and sides of Airport facility: A plant where aviation fuel is elements after undergoing biological the hull by spaces varying between 1 and stored and from which its distribution to conversion processes, that is, anaerobic 3 metres wide or deep. These spaces the aircraft operating at that airport is fermentation or digestion. remain empty when the tanker carries carried out. cargo, but fill up with sea water on ballast Bunker: A variable proportion blend of diesel Aquifer: A geological formation in which voyages. and fuel oil used as fuel in marine diesel underground water is stored and circulates engines. European Foundation for Quality by using the porosity and configuration of Management (EFQM): An international the rock containing it. CDO (Chemical Demand for Oxygen): foundation based in Belgium that works Quantity of oxygen equivalent to that of BDO (Biological Demand for Oxygen): towards increasing the efficiency and the potassium bichromate consumed in Quantity of dissolved oxygen necessary for efficacy of European organizations through the oxidation of organic matter, either microbial oxidation of biodegradable strengthening and improving quality. At the dissolved or in suspension, contained in a matter in an aquatic atmosphere. It is used present time, its membership includes over sample of water. It is used to measure the to measure the concentration of 600 organizations, from multinationals and total concentration of organic matter biodegradable organic matter present in a important national companies to present in a sample of water. sample of water. universities and research institutions. CLH Corporate Social Responsibility Report 2010 Glossary of terms

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Gigajoule: 109 joules. The joule is a unit of ISO 14001: Certification standard for Thermal desorption: Process for treating energy in the International System of Units environmental management. waste products and soils that uses a heat (IS). Its symbol is J and it is equivalent to process for reducing the presence of Leachate: Liquid produced when water passes the product of one newton per metre. certain contaminants. through (infiltrates) any permeable Global Reporting Initiative (GRI): An material. It may contain both suspended Tracer: A substance with some kind of special international initiative aiming to provide a and dissolved material, generally both. feature (colouring matter, for example) that standard methodology for drawing up makes it easy to detect and which, when MARPOL (Marine Pollution): Name of the sustainability reports (http://www. added to another, allows the latter to be 1973 International Convention for the globalreporting.org/Home). identified and monitored. Prevention of Pollution from Ships,

Greenhouse gases: These are mainly CO2, modified by the Protocol of 1978. It is an United Nations World Compact: An initiative N2O and methane. When present in the international treaty signed by most that began in 1999 with the aim of making atmosphere in increased concentrations, countries that are related to the sea, Spain commitments of an environmental, labour this raises the temperature of the earth’s among them, and its rules are applied to and anti-corruption nature and the surface because the escape of the oil-carrying operations carried out at sea. protection of human rights widespread in infrared radiation emitted by this surface is the private business field. NOx: Nitrogen oxides. hindered. Volatile Organic Compounds (VOCs): Each (Oil) pipeline: A pipe for transporting oil or oil Hydrant: Fuel distribution network situated of the chemical compounds (alcohols and by-products. beneath the aircraft parking area at light ethers, benzene) that are present in airports. Refuelling Unit: A tank truck designed gasolines and which evaporate on coming especially for transporting and supplying into contact with the air. Hydrocarbon: Organic compound formed by fuel to aircraft at airports. carbon and hydrogen atoms that

comprises the main component of SO2: Sulphur dioxide. petroleum. SOx: Sulphur oxides. ISO: International Organization for Storage facility: A plant where oil products are Standardization. stored in tanks designed for this purpose ISO 9001: Certification standard for quality and where tank trucks collect oil products management. for distribution to end customers. Compañía Logística de Hidrocarburos CLH, S.A. Titán, 13 28045 Madrid (Spain) Tel.: + 34 91 774 60 00 [email protected] www.clh.es