REPORT 2014 We Thank the Teams That Supported the Elaboration of This Sustainability Report

SUSTAINABILITY REPORT 2014 We thank the teams that supported the elaboration of this Sustainability Report:

President General Secretary VP of Administration VP of Public Services and Regulation VP of Equity Portfolio and Planning VP of Special Projects VP of Finance VP of Transmission VP of Internal Auditing Subsidiaries Directorate Directorate-General of Subsidiaries SUSTAINABILITY Directorate of Subsidiaries’ Corporate Affairs Directorate of External Relations REPORT 2014 The Grupo Energía de Bogotá Foundation

Edition Design and Layout Integrated Management System Management .Puntoaparte Bookvertising External Relations Directorate Empresa de Energía de Bogotá Bogotá, March 2015 www.eeb.com.co Advisors BSD Consulting Ltda.

Cover design and chapters Sistole

Photographs EEB’s Photobank EEB Sustainable Management Report 2014

Commitment Commitment Commitment Commitment Commitment Commitment 1 2 3 4 5 6

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trillion, i.e. a 17.72% above the recorded at De- Bogotá during the period of peak demand in 2014; Message to our Stakeholders cember 31, 2013. (V) The adjudication to the Company of three ma- Meanwhile, stock performance reflected an in- jor UPME projects, namely: Bolívar - Termocarta- crease of 17.24% in the year, with a closing price gena (220 kV) and associated transmission lines, of COP 1,700 per share. Sogamoso – Norte – Nueva Esperanza (500 kV) The good performance of the Company, reflect- and associated transmission lines and the Rio Cor- ed in its financial strength, has enabled EEB to im- doba Project ( 220 kV) with a total investment of prove its investment grade ratings by major rating USD 321 million. Once these projects come into op- agencies: Fitch Ratings has upgraded the corpo- eration, these three projects will enable the Com- As President of the Company and its Board of Di- rate rating from ‘BBB- ‘ to ‘BBB’ with a stable out- pany to achieve a share of 14.6% in the National rectors, I present this Executive Summary of the look, Moody’s affirmed the Baa3 corporate rating Transmission System (STN). management report for 2014 which includes its and upgraded its outlook from stable to positive, most relevant indicators, for example: financial while Standard & Poor’s upgraded the debt rating performance, growth, sustainability and the major from ‘BB+’ to ‘BBB- ‘with a stable outlook. milestones of our subsidiaries. This is with the understanding that the details of these and other cor- ˦˦ Concerning growth, the acquisition of 31.92% the porate aspects of business management, such as International Gas Transportation company (Trans- human resource management, legal issues and in- portadora de Gas Internacional, “TGI”) the main gas novation, among others, will be elaborated in the transporter in Colombia should be highlighted; this Management Report annexed to this paper and particular transaction has enabled EEB achieve own- which was elaborated under the GRI-4 guidelines ership of 99.97% of the shares of that company, fu- (sustainable global trend reports). In this regard, it ther consolidating the Group. includes the Integral Management Report of 2014, Other achievements are related to (i) The thusly, complements the Progress Report that was agreement between EEB and the Financiera de De- presented to the General Stockholders Meeting held sarrollo Nacional (the National Development Finan- on 23 December 31 of the same year and that cov- cial Institute) for the comprehensive structuring ered the period up to October 2014. of the first Bogota metro line; (ii) the entry into operation of the new Thessaly 230 kV Substation Outstanding Milestones and associated transmission lines, which guarantee Ricardo Roa Barragán the evacuation of the energy generated in the fu- President ˦˦ In regard to financial performance, the fig- ture El Quimbo Hydroelectricity Plant, with the re- Empresa de Energía de Bogotá S.A. ESP ures reflect a positive evolution of the Company’s quired quality, safety and reliability levels ensured; strength with a net income of USD 981 million, (iii) The putting into commercial operation of the 16.28% higher than that registered on December Alférez 220 kV Substation and associated transmis- Dear stockholders and other stakeholders of the Empre- 31, 2013, with an EBITDA of COP 1 55 billion. On sion lines; (iv) The putting into commercial oper- Gustavo Petro Urrego sa de Energía de Bogotá, (the Bogota Energy Company, a consolidated basis, EBITDA reached COP 2.57 ation of the Static Reactive Power Compensation President of the Board of Directors or “EEB”), the headquarters of the Grupo Energía de Bo- trillion, reflecting a growth of 44.83%, while con- - SVC Tunal Project, which reduces the risk not be- Empresa de Energía de Bogotá S.A. ESP gotá (the Bogota Energy Group or “GEB”): solidated operating income amounted to COP 2.3 ing able to meet electricity demand in the city in

6 7 About EEB and 1 the Grupo Energía 2 3 EEB Sustainable Management Report 2014 de Bogotá

Our model of Global Responsibility is moving to- On the other hand, the relevant results of our inter- Bogotá (EMB, or the “Bogota Mobility Compa- “2015 will be a year in which we wards strengthening social fabric, initiatives, the national subsidiaries can be summarized as follows: ny), was created with the aim of participating in focus on a better execution of our promotion of conservation and the preservation the execution of mass public transportation proj- of biodiversity, support for culture and generat- ˦˦ Contugas, on April 30, 2014, put its infrastruc- ects for both passengers and cargo which require investment planes and projects, as ing opportunities through the GEB Foundation (la ture into operation, in compliance with the BOOT electrical infrastructure to operate. well as the implementation of in- Fundación Grupo Energía de Bogotá (in terms of contract, which was signed with the Peruvian ternal management strategies that culture, health, education, access to basic ser- state. By the end of the year, it had 29,283 con- In short, we have focused our efforts on furthering our encourage further consolidation and vices, etc.). nected users. consolidation as one of the leading energy groups in ˦˦ With regard to the milestones of our do- ˦˦ Cálidda continues to consolidate its growth in Colombia and Latin America, working with high qual- recognition of the Business Group mestic subsidiaries, we can highlight: (i) the Peru. By the end of 2014, it had 255,005 regis- ity standards and good business practices, thus con- we represent” strengthening the transportation of natural gas tered clients, 55.6% more that those reached by tributing to the development and quality of life in the by the entrance into operation of the Sabana the end of 2013. communities where we operate and fulfilling our com- natural gas compression station by TGI, which ˦˦ EEBIS Perú currently contributes providing en- mitments to our various stakeholders. Ricardo Roa Barragán guarantees fulfilling the Capital District and the gineering, supervision, supervision and back of- As we are a company with a majority public share- surrounding municipalities’ growth of demand fice services to companies that are part of GEB. holding (headed by the Capital District), this impos- until 2022, not to mention TGI’s acquisition of ˦˦ Trecsa put into the operation part of the infra- es an even greater challenge to generate economic, a 7.78% stake in the Pacific Pipeline project structure of the Transmission Expansion Plan social and environmental value for the benefit of our ˦˦ In the area of sustainability, we highlight two which aims to transport heavy petroleum from PET-01-2009 by powering the San Agustin, La stakeholders and society at large. very representative landmarks: (i) the inclusion of the Eastern Plains to Buenaventura to markets Vega II, El Rancho and Pacific substations. Also, We cordially invite you to know the details of our the Company for the third consecutive year in the in the Asian Pacific and the west coast of North in December, the first 100 km transmission line, management. Dow Jones Sustainability Index (DJSI) in the cat- America; (ii) Given the activity distribution of located between the Chixoy II plant and substa- egory of emerging markets, thus positioning the electric energy, the Cundinamarca Energy Com- tion Augustine, was energized. Regards, Company among the leading companies in regard pany (La Empresa de Energía de Cundinamarca, ˦˦ EEBIS Guatemala is focusing its activities on to the sustainability of its business management “EEC”) continues to fulfill its investment plan to the implementation of three fundamental proj- and activities; and (ii) the Investor Relations rec- improve the quality and reliability of its distri- ects for the development of the country’s electri- ognition by the Bolsa de Valores de Colombia (the bution system, giving greater emphasis to the cal system such as: South Pacific Ring, Cempro “BVC” or the Colombian Stock Exchange), during recovery of energy losses This investment is re- and Genor with an estimated investment of USD the implementation of best practices in investor reflected in the substantial improvement of com- 130 million. lations and the disclosure of information required pliance with the target loss metric, which stands ˦˦ EEB Energy RE, a GEB subsidiary that allows Ricardo Roa Barragán by the BVC, which facilitated the Company’s en- at 9.93% as of December 2014, the lowest lev- direct access to the global reinsurance market; President trance into the BVC’s COLIR Index. el in its history. during 2014, it undertook the placement of Mate- Empresa de Energía de Bogotá S.A. ESP rial Damage and Sabotage, and Terrorism policies for EEB, TGI, Cálidda and Contugas. Optimiza- tion of the Captive’s profits stands out, which, in

1. The COLIR is an index comprised of shares of companies that have received the Issuers Recognition - IR (or IR Recognition) from the Bol- 2013, reached USD 531,690 and USD 812,001

sa de Valores de Colombia (the “BVC” or the Colombian Stock Exchange) as per the Circular issued by the Bolsa de Valores de Colombia, by the close of 2014. Gustavo Petro Urrego

and which are part of COLEQTY, where the free float of shares determines their participation in the index. For more information regarding ˦˦ As part of the strategy to diversify the Group’s President of the Board of Directors

COLIR and IR, please see: http://www.bvc.com.co/IR business portfolio, the Empresa de Movilidad de Empresa de Energía de Bogotá S.A. ESP

8 9 About EEB and 1 the Grupo Energía 2 3 EEB Sustainable Management Report 2014 de Bogotá

About our report For the 214 Sustainable Management Report, for the first time, we took out a limited assurance based on the ISAE 3000 standard by an independent third party; this role was played by PricewaterhouseCoopers for seven of our material indicators and for our dec- It is the sixth published report and the third that we have laration of the level of “in accordance” level per the produced in our quest towards elaborating an integrated Guidelines for the Preparation of Sustainability Reports report in line with the IIRC. This version covers social, of Global Reporting Initiative (GRI), G4 version. This environmental and economic management for the peri- exercise strengthens the commitment of senior man- od between January 1 and December 31, 2014. agement and the Company to the quality and trans- We wish to clarify for the reader that a management parency of the information reported. report was presented with a closing date of October 31, See the PricewaterhouseCoopers Limited Assur- 2014, was presented at the last Ordinary Shareholders’ ance Report in Chapter 3 (annexes). Meeting held on December 23, 2014. Thus, this is the second management report generated for 2014, in which the complete management of the year is presented. The following international guidelines served as the basis for the drafting of this Sustainability Report: ˦˦ Global Reporting Initiative (GRI) - G4, the “in accordance” option. ˦˦ International Integrated Reporting Council (IIRC). ˦˦ Communication of Progress of the Global Compact of the United Nations. ˦˦ Blueprint for Corporate Sustainability Leadership of the Global Compact of the United Nations.

In this document you will find references that are made for each GRI indicator as follows: For the Empresa de Energía de Bogotá (the “EEB,” or the Bogotá Energy Company), the Sustainable Man- In EEB, we deliver relevant information in G4.28 agement Report is the most important tool to consoli- a timely and clear manner to Stakeholders, date and demonstrate its performance. This document as established in our Global Responsibility

covers its operation in terms of the business of elec- G4.28 and Communications policies. In addition, as part of our sustainable management, we trical transmission and the management of the Equi- undertook the following activities:

G4.33 ty Portfolio and its geographic scope of operations in Reference example of the GRI G4 indicators Colombia, except for the specific information financial that are reported in the Management Report performance of its subsidiaries abroad.

10 11 About EEB and the Energía de Bogotá Group

1. Profile of the Empresa de Energía de Bogotá SA ESP (the Bogota Eneergy Company or “EEB”)

2. Profile of the Grupo Energía de Bogotá (the Bogota Energy Group or “GEB”)

3. Corporate Mission and Vision

4. The GEB’s Shareholding structure and organizational structure

5. External Initiatives, awards and recognitions

EEB Sustainable Management Report 2014 About EEB and 1 the Grupo Energía 2 3 de Bogotá

1. Profile of the Empresa de Energía de Bogotá SA ESP (the Bogota Energy Company or “EEB”

The EEB is the parent company of the Grupo Energía de Bo- gotá (the Bogota Energy Group) which has the following business areas:

˦˦ The service power transmission through networks operating at voltages of 230 and 500 kilovolts (kV); connected to the National Transmission System; and the coordination, control and supervision of the operation of transmission assets. ˦˦ The growth and maximization of its equity portfolio; and developing investment opportunities in operating assets or projects in the energy sector.

Currently, the transmission business has 1,504 km of 230 kV circuits and 16 substations located throughout Colombia in the departments of Cundinamarca, Bolivar, Meta, Valle del Cauca, Huila, Nariño and Putu- There is more information mayo; with its equity stock portfolio, it controls oper- on the EEB at: ating subsidiaries, as is described in the next section. http://www.eeb.com.co/

15 EEB Sustainable Management Report 2014

2. Profile of the Energía de Bogotá Guatemala 3 Group

The GEB is a multinational leader in the energy sector that creates value for its shareholders and stakeholders through sustainable and profitable Colombia business management. Through its parent compa- 1 ny, Empresa de Energia de Bogota SA ESP (BSE) controls nine operating subsidiaries which participate in the entire energy chain comprising the generation, transportation, marketing and distribution of electricity as well as the transportation and distribution of natural gas.The Group is characterized by its strength and growth; it seeks to contribute Perú 2 to the development of the countries in which it operates: Colombia, Guatemala and Peru. Based in Bogotá DC, it leads projects that strengthen the entire organization, contributing to its competitiveness and productivity at both national and international levels, and it supports the growth of energy demand in an efficient and responsible manner. Due to its public-private model, the GEB is one of the largest conglomerates in Colombia and is the result of a successful business strategy based on The Business Group diversification and integration of services around is comprised of electricity and natural gas. Due to its concept of 1,785 employees Global Responsibility, the Group works closely with all stakeholders, generating economic, social and environmental value for each and every one by implementing sustainable management practices There is more information and support of a committed, innovative and effi- about the GEB at: cient team. http://www.grupoenergiadebogota.com/

16 About EEB and 1 the Grupo Energía 2 3 EEB Sustainable Management Report 2014 de Bogotá

The EEB is present throughout the whole chain of electricity and natural gas sectors, through its subsidiaries and A company that provides services in engi- (non-controlled) participated companies: neering, electrical studies, and manage- EEBIS (EEB Ingeniería y Servicios ment and implementation of electricity Guatemala S.A. y EEB Ingeniería transmission projects as well as the trans- y Servicios Perú S.A.C.) The largest natural gas transport company in Colombia. portation and distribution of natural gas, It holds nearly a 50% market share and has a 3,957 km in both Peru and Guatemala. pipeline network, covering the Atlantic Coast, the Ande- TGI (Transportadora de Gas an region, Barrancabermeja, Apiay, Yopal and the Sa- Internacional S.A. ESP) bana de Bogotá. Established in 2010, it has the aim of developing the most important infrastructure project in Guatemala, which includes building and operating some 850 km of transmission Company responsible for the distribution of natural gas in the department of Lima and Trecsa lines, 12 new substations and the expansion of 12 existing electrical substations in 15 the Constitutional Provence of Callao in Peru. In 2014, it surpassed 250,000 residential (Transportadora departments, 74 municipalities and 340 communities. In 2014, it put following transmis- customers, thus fulfilling the concession granted by the Peruvian State for the construc- de Energía de sion works into commercial operation: the Pacific Substation and its connecting lines, the Calidda (Gas Natural de tion and operation of the distribution system of natural gas for a period of 33 years, Centroamérica S.A.) San Agustín Substation, 230/69 kV, 150 MVA and its connecting lines, the extension of Lima y Callao S.A.) starting in 2000. The Group has had control of the company since February 2011, when 69 kV El Rancho Substation and the San Augustine-Rancho 69 kV line, and the La Vega it acquired a 60% stake through the investment vehicle of EEB Peru Holding Ltd., which 2 Substation and its connecting lines, the Chixoy 2 - San Agustín Line as well as the ex- is 100% owned by EEB. pansion of the Chixoy 2 substation.

EEC is a company that distributes power in 76 municipalities in the departments of Cundinamarca (69), Toli- ma (4) and Meta (3); it serves about 280,000 regulated The Empresa de Movilidad de Bogotá S.A. ESP was created in Febru- customers. The Group has had control of the company ary 2014 to participate in partnership with third parties that are spe- EEC (Empresa de Energía since February 2009, when it acquired an 82.3% stake cialized in designing systems for mass transit, freight or other uses de Cundinamarca through the Distribuidora Eléctrica de Cundinamarca S.A. that include electrical infrastructure. Its range of services includes the S.A. ESP) ESP (DECSA S.A. ESP) investment vehicle, of which 51% design, construction, financing, operation and maintenance required EMB S.A. ESP (Empresa de belongs to the GEB and 49% to Codensa. for the implementation and operation of electric mobility projects, in- Movilidad de Bogotá S.A., ESP) cluding the commercialization of energy required.

Contigugas is a company that has a thirty-year concession for the transportation and distribution of natural gas in the department of Ica, Peru. In 2014, the successful- Contugas ly completed the commissioning of the Ica Regional Gas (Contugas S.A.C.) Pipeline, which turned this area into the First Decentral- It is a subsidiary of the Group that gives it direct ac- ized Gas Energy Region of Peru, providing natural gas cess to the global reinsurance market; it is intended for homes, shops, service stations (NGV) and industries. to optimize costs and insurance coverage of GEB’s EEB Energy RE subsidiaries.

18 19 About EEB and 1 the Grupo Energía 2 3 EEB Sustainable Management Report 2014 de Bogotá

In addition, BSE has shareholding in: 2,5 % 40 % 40 % stake in stake in stake in Activity: power generation, construction 16,2 % stake in Red de Energía del Consorcio projects and commercialization of Perú (REP) Transmantaro S.A. energy solutions. (CTM)

Activity: operation of the electricity trans- Activity: Running an electric grid to join the mission grid in Peru at the voltage levels of Central North and South transmission sys- Activity: the provision of the public utility ser- 220, 138 and 60 kV. tem in Peru. Construction, operation and main- vice of electricity and complementary electrical tenance of power transmission networks and 25 % activities such as generation, transmission, dis- stake in systems development activities and telecom- tribution and marketing, as well as the provi- munications services. sion of related public service activities.

Activity: distribution and marketing of natural gas; exploration, production, generation, transmission and / or transmission, distribution and marketing of any type of energy. 51,5 % 1,67 % 51,5 % stake in stake in stake in

Activity: The distribution and sale of 15,6 % electricity; the execution of all related and Activity: electricity transmission, telecom- Activity: electricity transmission, telecom- stake in complementary activities, related to the dis- munications transport, road concessions, op- munications transport, road concessions, op- tribution and marketing of energy. eration and management of markets and eration and management of markets and construction of infrastructure projects. construction of infrastructure projects.

Activity: the purchase, sales, transport, distribution, exploitation and exploration of natural gas, oil and hydrocarbons in general.

20 21 * Controlled portfolio companies ** Associated | Particpated (uncontrolled) companies Value Chain │ Electricity G4.12

1. Generation 2. Transmission 3. Distribution 4. Commercialization The large-scale electricity is traditionally obtained from Transmission is performed through a network of power The transmitted energy is received and distributed to end Commercialization involves the purchase and sale of hydroelectric and thermoelectric power plants, which are lines transporting large amounts of power which are users. The distributors charge for the energy, including all electricity in the wholesale market and its sale for oth- responsible for converting energy into electrical energy interconnected via substations located at both gener- the value chain, and then the amounts related to all ac- er operations in that market or end users. produced. The energy obtained usually has a voltage of 3 ation centers, as well as where they are reduced and tivities are delivered so all companies participating in the kV to 20 kV, these energy levels are then processed rais- distributed to end users. This is the business of BSE process may be paid. ing their voltage level up to 220 kV and 500 kV (in the and ISA (Colombia), Trecsa (Guatemala), REP CTM The distribution process also involves a process of The EMB will proved the case of Colombia). This is the principal business area of Peru and Peru. transformation of energy to a voltage of 110 V which electrical component for Emgesa and Isagen (Colombia). that used in homes and commercial areas and 220 V for public transport in Bogotá (electric buses industrial areas. This is the principle business activity of for Transmilenio, SITP, Codensa, Meta and DECSA- Electrificadora EEC (Colom- commuter trains, etc.). bia).

Generating companies Transmission companies Distribution and commercializing companies

Company Percentage of Participation Company Percentage of Participation Company Percentage of Participation Company Percentage of Participation

2,5%** 100%* REP Perú 40%** 82,34%*1

51,5%** 95,5%* 100%* CTM Perú 40%** 51,5%**

95,29%* 1,67%** 16,2%**

¹ Since February 2009, the company has been part of the Group due to the acquisition of an 82.3% stake through the investment vehicle of Distribuidora Eléctrica de Cundinamarca S.A. ESP (DECSA S.A. ESP), 51% which belongs to the GEB and 49% to Codensa. 23 * Controlled portfolio companies ** Associated | Particpated (uncontrolled) companies Value Chain │ Natural Gas

1. Extraction/Production 2. Transport 3. Distribution/Commercialization Exploration involves the identification and localization After extraction and processing, the gas must be The final step is to distribute the gas in quantities of areas containing hydrocarbons through explorative transported to distributors through pipelines, through suitable for residential and commercial consump- geophysics. Once hydrocarbons deposits have been which the gas is transported taking advantage of the tion. Companies that undertake the commercializa- found, the next step is production, which involves the pressure difference. This business area corresponds tion and distribution of natural gas must charge for extraction of natural gas from underground to the sur- our subsidiaries TGI (Colombia), Cálidda and Contu- the service and pay the production and transport face using different equipment and methods, natural gas (Peru). companies for the product. gas. After removing the gas, it must be processed to Another way of transporting gas is making liquid (Liq- This business area corresponds to Cálidda and meet end use requirements. uefied Natural Gas) and packaging it in ships, which Contugas (Peru) and Gas Natural Fenosa and Promi- corresponds to TGI, Gas Natural Fenosa and Promi- gas (Colombia). gas (Colombia).

Transportation companies Distribution and commercializing companies

Company Percentage of Participation Company Percentage of Participation Company Percentage of Participation ¹ In April 2014, the Empresa de Energia de Bogota SA ESP completed the purchase of 31.92% of Transportado- ra Gas International (TGI), which was carried out by Citi 99,97%*1 Venture Capital International (CVCI) through Inversiones 75%* 25%** en Energía Latinoamérica Holdings S.L.U., a special pur- 25% pose investment vehicle domiciled in Spain, Latin Ameri- ca Energy Investment Holdings SLU. 15,6%** 60%* 100%* 40% About EEB and 1 the Grupo Energía 2 3 EEB Sustainable Management Report 2014 de Bogotá

3. Mission and CORPORATIVE VALUES Corporative Vision These values give meaning to the Code of Ethics and are the basis of corporate strategy.

INSTITUTIONAL MISSION Transparency Integrity The Company will undertake The Bogota Energy Group has mainly public capital; it generates econom- It will act with firmness, fairness, management in an objective, honesty, consistency and sincerity. ic, social and environmental value for its shareholders, Bogotá DC and other clear and verifiable manner. stakeholders through the relevant participation in the national and international energy sector; this participation is characterized by its global responsibility, world-class practices and a committed, innovative and efficient team.

VISION

Trust / Confidence The Group will be recognized as a group leader in sustainabili- By experiencing values, it will ty: be a model in the generation of economic, social and envi- generate trust; trust is the result of an ethically correct act. • ronmental value.

It will be located at the top level of shareholder value. Respect Equity • It will interact in recognition of It will act with justice, equality and fairness, collective interests, individual seeking a positive and inclusive social impact diversity, sustainability of natural and make our management objective, • It will be the first business group in energy transport. resources and institutionalism. clear and verifiable.

• It will be the most competitive distributor of natural gas in Peru PROJECTIONS It will be among the top five electricity transmission companies • in Latin America In 2024, the Company will have an EBITDA that will be between USD 2.6 billion and higher than USD 5.2 It will demonstrate its considered and strategic participation billion, which will be income with social, economic and • in activities in the energy chain as well as in associated services sustainable profitability.

26 27 About EEB and 1 the Grupo Energía 2 3 EEB Sustainable Management Report 2014 de Bogotá

EEB’S ORGANIZATIONAL STRUCTURE 4. Shareholding and Organizational (as of December, 2014)

Structure of EEB Figure 2. EEB’s Organizational structure

General Assembly of Shareholders

More information on Tax Auditing corporative governmenten can be found at: SHAREHOLDER COMPOSITION http://www.eeb.com.

Board of Directors co/empresa/gobierno- corporativo EEB is a joint stock company, incor- go de Comercio), the private law as President Ricardo Roa Barragán porated as a jointly owned public util- it relates to corporations, as per Law General Secretary ity company, under household utility 142 of 1994. In compliance with this The Grupo Energía de Hugo Zárrate services regulations, the rules set Law, the Capital District is the princi- Bogotá Foundation Natalia García de Castro forth in the Commercial Code (Códi- pal shareholder. 4% Subsidiaries Directorate Victoria Sepúlveda Directorate of 1% Internal Audits Figure 1. The Structure of EEB’s Shareholder Composition Sandra Aguillón 4% Directorate-General of Subsidiaries’ Gabriel Rojas Directorate of External Relations Capital Distrito Directorate of Subsidiaries’ Sheilla Namén Pension and Severance Pay Funds Corporative Affairs Fabiola Leal Ecopetrol Corficolombiana Investment funds Others VP VP of Finance of Transmission Felipe Castilla Ernesto Moreno VP VP of Special More information on the of Administration Projects Américo Mikly (E) Juan Martín VP VP shareholding structure Zuluaga 7% of Equity of Public of the Company can be found at: Portfolio and Services and http://www.eeb.com.co/empresa/quienes- Planning Regulation Álvaro Torres Javier de Quinto somos 8% 76%

28 29 EEB Sustainable Management Report 2014

5. External Iniciatives, Awards AWARDS AND DISTINCTIONS

and Distinctions During 2014 the Company obtained the following awards:

EEB was included for the third In September 2014, BSE was included for the third 1 consecutive year in the Dow consecutive year in the Dow Jones Sustainability In- Jones Sustainability Index. dex (DJSI) in emerging markets. EXTERNAL INICIATIVES sarrollo Tecnológico del Sector Eléctrico CIDET – Ini- ciativa Colombia Inteligente; EEB receives IR recognition In September 2014, EEB received the IR recognition ˦˦ The Colombian Committee of the WEC – COCME 2 for good investor relations from the Bolsa de Valores de Colombia (BVC) for com- (World Energy Council – Comité Colombiano del practices. panies that are listed on the public stock market and Consejo Mundial de Energía). stand out for having high standards of disclosure of information to their investors, among other practices . As a result, the Company was also included in the BVC COLIR index, along with other Colombian major secu- The Company belongs to the following guilds and as- rities issuers. sociations: Standard and Poor’s (S & P) In August 2014, Standard and Poor’s (S & P), the ˦˦ National Association of Public Utilities (Asociación Na- 3 upgraded the credit rating international agency, upgraded the credit rating for cional de Empresas de Servicios Públicos y Comuni- of corporate debt Empresa the corporate debt of the Empresa de Energía de caciones (“ANDESCO”)); de Energia de Bogota SA Bogotá SA ESP (EEB) from BB+ to BBB-, which cor- ˦˦ Colombian Association of Electric Energy Distributors ESP (EEB). responds to its investment grade. (Asociación Colombiana de Distribuidores de Energía eléctrica (“ASOCODIS”)); Likewise, we are members of the following social, eco- Moody’s raises EEB’s In August 2014, the Moody’s international rating ˦˦ Association of Human Talent (“ACRIP”); nomic or environmental initiatives: 4 rating outlook from stable agency confirmed EEB‘s investment grade as Baa3. ˦˦ World Energy Council, (“WEC”); to positive BSE level. ˦˦ Regional Energy Integration Commission (Comisión ˦˦ Signatories of the Global Compact of the United de Integración Energethics Regional (“CIER”)),; Nations since 2009. Fitch raised the credit rating In October 2014, the Fitch agency Ratings upgraded ˦˦ Connect Bogotá Región; ˦˦ Signatories of the Business for Peace Platform of 5 of EEB and TGI to ‘BBB’ with the EEB’s credit rating from “BBB-” to “BBB”, which ˦˦ Local Network of the Global Compact in Colombia; the Global Compact since 2013. a stable outlook. implies an improvement in the level of investment of ˦˦ Regional Center of the United Nations Global Com- ˦˦ Participants in the Measurement of Corporate the Company and the ability to meet its long-term pact; Transparency Public Utilities initiative since 2007. obligations. ˦˦ Cluster Bogotá Sabana Electric Energy (Clúster de ˦˦ Part of the Global Compact LEAD, we are the only Energía Eléctrica de Bogotá – Sabana); Colombian member. In September 2014, EEB ranks among the six compa- ˦˦ The Research and Development Center of the Elec- ˦˦ Participants in the index Dow Jones Sustainabili- 6 Measurement of Corporate nies with less risk of corruption, according to the Trans- trical Sector Coporation – the Colombian Inteligent ty. In 2014 the company was included for the third Transparency for Public parency Measurement of Public Utilities Companies Iniciative (Corporación Centro de Investigación y De- consecutive year. Utilities Companies. carried out by Transparency for Colombia.

30 31 Integral management

1. Our understanding of corporative sustainability.

2. Good governance, ethics, risk management and human rights

3. Commitment 1: Create value for shareholders.

4. Commitment 2: Provide a service with world-class standards.

5. Commitment 3: Care and respect the environment.

6. Commitment 4: Improve the quality of live in the communities were we operate.

7. Commitment 5: Be a great place to work.

8. Commitment 6: Have a sustainable value chain.

EEB Sustainable Management Report 2014 Understanding of 1 2 corporative sustainability 3

1. Our understanding of corporative sustainability

fe in the c f value fo y of li ommu tion o r shar alit niti rea eho qu es Involvement C lde he wh rs t er with ve e ro w p e stakeholders m o I pe ra te

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B Global a

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Figure 3. Model of the GEB’s Global Responsibility

In the Energía de Bogotá Group, Corporate Sustainability For 2015 and in the medium term, the Company has is understood to be the generation of economic, social and defined as strategic project is updating of sustainability environmental value for stakeholders. This is materialized guidelines for the Group. Thus, management approach- through the Macro Policy of Global Responsibility and its es, commitments and priorities will be updated accord- management model, which are intended to create a cul- ing to current realities and context of the performance ture of sustainability that goes beyond enterprise bound- of the Group as well as the projection of its business. aries and means the companies act as responsible citizens. The Company’s Global Responsibility scheme is a The Company has assumed Six Commitments with its constant flux, inspired by waves of energy and re- stakeholders and society in general. Each of these guides flecting the management of the Six Commitments. the Company’s day-to-day management, seeking to fulfill A central and fundamental point is the involvement the mission and business objectives. The following chap- of stakeholders, which is a factor that streamlines ters will report how each commitment has been managed. management.

35 Understanding of 1 2 3 EEB Sustainable Management Report 2014 corporative sustainability

1.1 INVOLVEMENT WITH STAKE- For more information about Global Re- 1.2 THE UPDATING OF HOLDERS sponsibility, please see: MATERIAL MATTERS IN 2014 http://www.eeb.com.co/responsabilidad- global/que-es-responsabilidad-global In EEB, relevant information is delivered to stakeholders The Company understands that the management of sus- The updating of this area, in addition to defining sustain- G4.17 in a timely and clear manner, as has been established in For more information about rleetions with tainability and communication should be addressed stra- able management priorities, has created a more focused

G4.24 the Global Responsibility, government and Corporative stakeholders, please see: tegically: recognizing the impact that business has on strategic report. Communications policies. http://www.eeb.com.co/responsabilidad-glob- Stakeholders and aligning their expectations with the Thus, as a first step, various external and internal al/relacionamiento-con-grupos-de-interes strategy. Therefore, the Company has identified materi- sources were analyzed to understand the most rele-

al aspects by understanding of the expectations of Inter- vant matters for the Company and the sector while G4.23 We understand our est Groups, and has linked them to its business strategy taking into account stakeholders’ perspectives. These

G4.27 clients to be generators, and relevant industry issues. sources included: transporters (market peers) This group of stakeholders is comprised of EEB’s and distributors, such as shareholders; Bogotá D.C. is the Colombian National the principal shareholder. Internal sources External sources Interconnected System

Interviews with key areas of the organization areas Dialogs with stakeholders 2013 clave de la organization

Massive communications Clients Shareholders Management Report for the period The resident population media that cover the Dow Jones Sustainability Index 2014 Results January to October 2014 in the Company’s Company’s zones of zones of influence. influence Communities Communication media GRI guidelines and sector protocol Corporative Strategic Plan 2014-2018 for Electrical Utilities

Representatives of the Environmental Authorities Bodies that are in Sector Regulatory bodies Global Responsibility Model Global Compact (LEAD and Business 4 peace) charge of protecting in the sector and preserving natu- Suppliers Employees ral environments Sustainable Management Report 2013 Communication methods

Company that provide the They represent the Referencing external international Reputation Survey 2013 Company with the goods Company’s human and national companies and / services necessary for talent. the Company’s operations.

Figure 4. Our stakeholders. Table 1. Bases consulted for updating the materiality exercise of the Company.

36 37 Understanding of 1 2 3 EEB Sustainable Management Report 2014 corporative sustainability

The analysis of these sources yielded a list of relevant issues that should be prioritized according to their im- Matters of medium importance portance. This prioritization was validated and approved 1 by EEB’s President’s Committee. 22. Health and safety at work Peers 6 By the end of the process, we had obtained a list of 23. Reduction of discharges and waste 2 matters of high importance (material things), which cor- 24. Planning and response to emergencies responds to the basic issues for the development of the and disasters GRI structure and contents of this report. The remaining is- 25. Providing access to energy services 4 sues (medium and low importance) are listed below but 26. Renewable Energy 3 not developed further in this report. 27. Lobby / públic policy 22 13 28. Tax Policy Media 12 5 29. Water 11 Matters of greatest importance 30. Sustainable procurement 10 8 31. Assessments and audits of suppliers 23 15 1. Fight against corruption 32. expansion and new business 2. Ethics and Good governance 24 19 14 9 7 3. Development of human talent Global Compact 4. Biodiversity

External Perspective 25 5. Employee welfare Matters of low importance 15 6. Respect for and promotion of human rights 33. Discrimination at work 29 26 7. Social Investment in communities where the 34. Diversity 16 it operates 35. Freedom of association DJSI 8. Managing relationships with the community 36. Smart grids 27 17 18 9. Supporting the development of Bogotá 37. Growing energy demand 10. Innovation in business management and the 36 20 28 30 energy sector 11. Growth and profit maximization 33 21 Dialogs 12. Climate Change Strategy 2013 35 13. Operational eco-efficiency Material Issues Matrix 34 31 14. Air Emissions 37 32 15. Attracting and retaining human talent Thus, in this Management Report management is clear 16. Risk and crisis management with regard to Global Responsibility commitments and Internal Perspective 17. efficient contractual processes the prioritization of material matters, which are to be

18. Work environment found in the following subsections. CSP Internal Model of Previous Internal 19. Quality and reliability of service Interviews Responsibilitiy reports Context 20. Coexistence of communities with infrastructure 21. Management of knowledge Figure 5. The Company’s material matters matrix.

38 39 Good governance, Ethics, Risk 1 2 3 EEB Sustainable Management Report 2014 management and Human Rights

2. Good governance, ethics, risk management and human rights

The EEB has a decision-making structure that is transparent and trustworthy to protect shareholders’ interests, properly manage risks and crises, and promote the struggle against corruption and respect for human rights in all of the Com- pany’s relations.

2.1 Good governance rectors and Managers as well as advisors, professionals, employees, investors and suppliers. It also seeks ˕˕ WHY IS IT IMPORTANT? to fulfill the stated objectives and that they are undertaken within the Company’s corporative values. Good Governance is critical to EEB as proper management affects economic and social growth, ensuring sus- HOW DO WE DO IT? tainable development, increases the Company’s value, prevents or reduces the risk of financial crisis, creates The Company bases its good governance on its val- better relations with all stakeholders and generates ues, its Code of Good Governance and its Corpo- greater investment opportunities. In short, it enables rate Governance Policy, which are reference points decision-makings based on criteria related to business to guide actions and manage its business. convenience. Moreover, it relies on a model of organizational The Company’s corporative government is com- management that contributes to the organization’s prised of shareholders, members of Board of Directors, growth, sustainability and competitiveness and con- the President, Vice Presidents, Secretary General, Di- sists of three pillars:

40 41 G4.40 G4.38 42 to fulfill strategic objectives. of tion authority theorganization tounite andhelp duties, which are essential for the proper delega- as wellnon-negotiableandbindingrights users. Theseguidelinesdefine behavioral patterns its employees, investors, suppliers, customers and thatmake units andbusiness iaries and uptheGEB that shouldguidethemanagement of all subsid- Corporate correspond to the framework policies systems. tion of sustainable management and management ed Management System, handles the coordina which, by means of the risk; Vice-President, and the Administrative porate to related managesissues which Planning, the Vice-Presidency of Equity Portfolio and Cor and the market in a timely and accurate manner; nating informationtoshareholdersandinvestors tor Relations, which is responsible for dissemi- major role: the company. However, the following areas play a CorporativeThe government areasof crosscutsall ˦ ˦ ˦ Corporative Policies ˦ ˦ ˦ customer satisfaction. are consistent with the needs and contribute to activities, ensuring that products and services Processes: They enable the development of the achievement of itsstrategic objectives. ment of themanagementof theCompany and People: of resourcesandorganizationalefforts. term, ensuring value creation and alignment ing businessgoalsinthemediumandlong Strategy: EEB They are fundamental to the develop- Financial Management and Inves- Sustainable ManagementReport Defining the way forward to achiev Management Integrat- 2014 - - -

but by decisionof seventy percent(70%)of repre- sions concerningissuesnot includedintheagenda, call. The extraordinary meeting may not make deci- headquarters, on the day and time indicated in the seen orurgentneedsof company, inthecompany’s dinary be held as assemblies required will by unfore least one quarter of the subscribed capital. Extraor quested by a number of shareholders representing at will convene a General Meeting of Shareholders as re tor of society. In anyaddition, of the above bodies of the Board of Directors, the President or the Audi- or extraordinary assembly. composition of the Board of Directors at an ordinary rectors in the call. Only shareholders can change the time determined by the President or the Board of Di- first three months of each year, at the place, date and will be held in the Company’s headquarters within the the shares present at the meeting. Regular meetings the attendees, as agreed by an absolute majority of dinary or extraordinarybe chaired byand will one of the quorum established by its by-laws and the law. or registry their representatives or agents, meeting posed of shareholders registered in the share est organ of corporative government; it is com The General Assembly of Shareholders is the high General AssemblyofShareholders ing Committees. Board of Directors and the Good governance and Audit pany are theGeneral Assembly of Shareholders, the that The bodies ensure governanceGood of the - Com structure Corporative andfunctionsofgovernment Extraordinary assemblies will be verified by the call The meetings of the General Assembly may be or ------to all members and not participate either directly and statutory regulations, provide equal treatment tent, they must ensure strict compliance with legal account.To into interests shareholders’ ing thatex and diligence. They act in the interests of EEB, tak as such, must demonstrate their good faith, loyalty, pendent by law. tive main alternates, of which 25% must be inde- respec their (9)memberswith composed ofnine is reappointed or removed from office at any time. It period of two (2) years and the members may be that reflectstheproportionateshareholdingfora senting aquarter of thesubscribed shares. so requestedby anumber of shareholdersrepre- Assembly whenever it so deems necessary or when and his / her the alternates, and Generalcalling pointing and removing the Company’s President trative policies,managing corporate business,ap- normative- adminis functions establishing include itoring andevaluating theCompany’s policies.Its Board ofDirectors isresponsiblefor issuing,mon- As thesecondbodyof Corporate Government, the Board ofDirectors tional newspaper. nitely. Likewise, the call is published in a major na- the termof thecall andiskept onthepage indefi- tual meeting. This information is available during sideration, and information necessaryfor theac together with the agenda to be submitted for con- ers willbe published on the Company’s website the agenda exhausted. sented shares, itmay address other issues once Members of Board of Directors are directors and, The Board of Directors is composed in a manner The call for the General Assembly of Sharehold 1 2 management andHumanRights Good governance, Ethics, Risk - - - - - of itsduties. Board withsupportandadviceintheperformance Governance which were created to provide the Auditternal ofGood andtheCommittee Committee ligion orpoliticalphilosophicalopinion. to sex, race, national or family origin, language, re any memberswithout ofits tion due discrimination and sustainability. TheAssemblycarriesoutelec ment, control and ensure the Company’s growth by theshareholderstoprovide strategic manage- environmental issues, whose members are elected edge of and experience in economic, social and plinary bodyof greatvalue, endowed withknowl- be a conflictof interest. sonal interestsinactsthat couldbeconsideredto or inrepresentationofthirdparties tofurtherper Finally, the Board has two committees: the In- The Board ofDirectors isa collegial,interdisci- gobierno-corporativo http://www.eeb.com.co/index.php/empresa/ tors, pleasesee: tions andpowersoftheBoardDirec For moreinformationregardingthefunc gobierno-corporativo http://www.eeb.com.co/index.php/empresa/ please see: the GeneralAssemblyofShareholders, For moreinformationonthefunctionsof corporativas http://www.eeb.com.co/empresa/politicas- cies, pleasesee: For moreinformationoncorporativepoli - 3 - -

- - - 43 G4.41 Good governance, Ethics, Risk 1 2 3 EEB Sustainable Management Report 2014 management and Human Rights

The Committee has a Chairman, while the Sec- uations and they refrain from participating in matters retary is the company’s Secretary General. The that may lead to the same. Doubt concerning acts in- latter keeps detailed minutes of the Committee’s volving conflicts of interest does not absolve members decisions in compliance with the Law. These deci- Board of Directors from abstaining in the respective sions are taken by simple majority. The Committee activities. meets whenever its members deem necessary and Annually, Board members deliberately fill out a is convened by its Chairman, at least once a year. survey, designed by the company, to identify potential conflicts of interest as well as a question- Internal Audit Committee naire in accordance with Law 964 of 2005. In this document, each member of the Board declares if The Internal Audit Committee advises the Board of they belong to other boards than that of the EEB, Directors in fulfilling its supervisory responsibilities and in what capacity; if they act as legal represen- in terms of the preparation, presentation and dis- tative or if they exercise any management position closure of financial information in compliance with in these other companies, and provide these com- the law. In addition, the Internal Audit Committee panies’ names; if they are majority shareholders issues a written report on possible economic oper- or have control in decision-making in any company, ations that are planned, while verifying that they they should provide its name; likewise, the should are carried out under market conditions and do not give information if they are an employee or director infringe the equal treatment of shareholders. This of a foundation, association or company receiving body is composed of all the independent members significant donations from the Empresa de Energía of the Board of Directors, which actually appoints de Bogotá SA ESP. them to the Committee. They must also state whether: To ensure adequate support, the Committee di- rects and monitors internal control procedures so ˦˦ They are an employee or officer of the Empresa de that they correspond to the Company’s objectives, Energía de Bogotá SA ESP or of its subsidiaries, af- goals, strategies and needs, and they also comply with the objectives of internal control, such as efficiency and effectiveness in operations, sufficien- cy and reliability of financial reporting. Additionally,

Our President’s Committee: it monitors compliance with the Company’s Inter- For more information about the Commit- From left to right: Committee of Good governance nal Control policies, principles, models and meth- tee of Good governance please see: Victoria Irene Sepulveda (Managing Director of Subsidiaries), odologies, in consideration of the GEB’s corporate http://www.eeb.com.co/index.php/empresa/ Samir Angarita (Advisor to the President), Sandra Milena Aguillón (Director of Internal Audit), Ernesto Moreno (Vice-Pre- This is a body appointed by the Company’s Board guidelines and policies. gobierno-corporativo sident of Transmission), Fabiola Leal (Director of Corporate of Directors to support management in regard to Affairs Subsidiaries), Ricardo Roa (President), Felipe Castilla (Financial Vice-President), Alvaro Torres (Vice President of the compliance, implementation, monitoring and Managing conflicts of interest For more information about the Internal Common Stock Portfolio and Corporate Planning), Américo enforcement of the Company’s Good Governance Audit Committee, please see: Mikly (Administrative Vice President), Hugo Zárrate (Secretary Code. Three Board members act on the Commit- The members of the Board of Directors are careful http://www.eeb.com.co/index.php/empresa/ General), Sheilla Namen (Director of External Relations) and Gabriel Rojas (Technical Director of Subsidiaries). tee, and, at least, one member will be independent. and responsible for publicizing conflict of interest sit- gobierno-corporativo

44 45 G4.37 46 purpose. ty and use assets reasonably held for social that end, this they observe the duty of confidentiali situations whichpresent conflicts of interest. To loyalty, i.e., they have the responsibility to report Company are obliged to act with due diligence and terest. Directors, managers and employees of the coverCode ofEthics - ofin conflicts and define VII of Governancethe Good Title andthe Code ˦ ˦ ˦ ˦ ˦ ˦ ˦ ˦ of a committee created by it. member ofBoardDirectorsorasa Energía de Bogotá SA ESP, other than fees as a They receive any payment from the Empresa de Directors. Energía de Bogotá SA ESP sits on the Board of which a legalrepresentative of the Empresade They aretheadministrator ofacompany in from that advisory service. ing revenues oftheassociationorsociety come so, they must state what percentage of operat by deBogotáSA deEnergía theEmpresa ESP. If panies belonging to the business group formed Empresa de Energía de Bogotá SA ESP or coming services tothe If they are shareholders of tion or company rendering advisory or consult They arepartners or employees of an associa trol bodies. ESP or the administrative, management or con vote of theEmpresa de Energía de Bogotá SA ment, they manage, direct or control a majority fy whether, either directly or through an agree- Bogotá SA ESP, inwhichcasetheyshouldclari- de deEnergía ofEmpresa They areshareholders pointment as a member of Board of Directors. been within the year immediately preceding ap filiates or controlling companies, or if they have EEB Sustainable ManagementReport 2014 ------that all investors have the righttoequal treat holders. stake all between ofinformation theflow facilitate - uses its phone lines and email taining two-way communications. In this regard, it timely and accurate manner by permanently main ing informationtoinvestors andthemarket ina Management, whichisresponsiblefor disseminat with its different Stakeholders. improve the Company’s communicative interactions channels of communication and action are used to various Stakeholders. usedexisting Thus,properly thatbuildtrustwiththeportunities fordialogue massive as processes as the information well op- system,integratingcommunication the Company’s hasserved This action. nal theCompany’s todefine the Communication Policy for internal and exter parent into account. tegic objectives of both the Group and EEB as its processes taking with compliance the while stra- tion between all those involved in the Company’s munications to ensure the proper flow of informa- to be follow in terms of internal and external com- responsible for defining guidelines and procedures The Directorate of External Relations isthe area Communication withStakeholders Article 69 of the Good Governance Code ensures Additionally, EEB on relies its Investor Relations The Directorate basedon aplan hasestablished transparencia http://www.eeb.com.co/empresa/etica-y- More informationisavailableat: to ([email protected]) to - - - - ˦ ˦ ˕ closure takes place. ery timeasituationorevent thatissubjecttodis- of relevant information reports tothe market ev byvided theCompany, theprovision togetherwith financial, commercialandoperational reportspro- ing EEB must be public, with quarterly disclosed ment. Therefore,allrelevant informationconcern- shareholders and suppliers, among others. financial servicesthatareprovided toinvestors, icy, publictendersoffered by the Company and laws and policy, the auditing manual, supply pol- provide access to tools such as procurementby- liable information. We must emphasize that they ernized to provide a platform withserious and re-

1. nal communication: 2. ˦ ˦ ˕ or to their first working session. In this regard, 100% members appointed of pri with newly of Directors, we carried out training sessions After each modification of the Company’s Board majority and minority shareholders. guaranteed we which in ofboth theparticipation Five general shareholders’ meetings were held The followingmechanismsare usedfor exter These twospaceswereredesignedandmod- WHAT DIDWEDOIN2014? The Group’s webpage: The EEBwebpage:http://www.eeb.com.co formation. players, where they can access exclusive in- dedicated toinvestors andfinancial market the Grupo Energía deBogotá with a section The webpageconsolidatesinformation on http://www.grupoenergiadebogota.com/ 1

management andHumanRights Good governance, Ethics, Risk

- - - ˦ ˦ ˦ ˦ tion S). TGI bonds international (Rule 144A / Regula- defined in contracts for the issuance of EEB and disclosure requirementsoffinancialresultsas Similarly, the Company the with has complied the time of exercising rights. inherent political theCompany’s orholding selling, orat securities forthemarketcial comestopurchasing, it when ance in a timely manner, information that is cru- sufficient informationaboutitselfanditsissu- the Company hasdisclosedtruthful, clear, and ance with Decree 2555 of 2010. In this regard, Superintendent in compli Financial Colombian sending regularandrelevant informationtothe deValorestro Nacional or yEmisores, “RNVE”), of Securities and Issuers (in Spanish: el Regis- We permanently updated the National Registry minutes. their attendance was registered in the meeting to every memberoftheBoard Directorsand tion necessary wasfor decision-making given nance Code. In addition, provided the informa established intheBylaws andtheGoodGover eration were issued in accordance with the rules mation toitsmembersand,ingeneral, itsop- meetings. Noticesofmeetingsproviding infor (14) times, twelve (12) of which were regular 31, 2014, the Board of Directors met fourteen During theperiodfrom January 1toDecember in theirnew roles. to their responsibilities, obligations and rights Company and,inparticular, everything relating were provided with information to relating the over, new members of the Board of Directors and Procurement Manual, among others. More- bylaws, Good Governance Code, Code of Ethics ternal regulations, a document that includes its they were issued a copy of the Company’s - in 3 - - - - 47 G4.58 G4.57 G4.56 Good Corporate Governance 48 ˕ ˕ their employees and stakeholders. encourage thecommitmentof theGroup’s companies, transparency in administration and management that tion, promotingcorporative values, and consolidating chestrate coordinated actions against fraud and corrup Different mechanisms have beenimplementedto or having a zero tolerance for fraud andcorruption. ical behavior and compliance with the law as well as by maintaining thehigheststandardsoftransparency, eth- characterized by be should significance and size such of it does business. It is recognized that an organization holders andguidetheCompany inthemarkets inwhich stake with relations in pillars ture; theyarefundamental - against corruption are key elements of organizational cul- fight the and ethics Bogotá, de Energía Grupo the For AGAINST CORRUPTION 2.2. ETHICSANDTHEFIGHT CHALLENGES ˕ ˕ HOW DOWEIT? WHY ISITIMPORTANT? EEB Sustainable ManagementReport ˦ ˦ that may be relevant of 2014) in everything try Code. Circular 028 - (New Coun Colombia Business Practices in New Code of Best ommendations of the Implement the rec 2014 - - - ˦ behavior: cilitate reportingof fraud, corruptionorunethical party and provides the following mechanisms to fa protection. manner,independent receive and will support and complaint received is handled in a transparent and this mechanismeffectively and toensurethatany the Ethics help Channel to Manual, which manage Committee of Ethicsof each individual company). dilemmas (complaints are reported monthly to the ethical concerning clarification seek to and quiries the GEB. Likewise, the channel can be used for in- resents a detriment to any company that belongs to corruption, or illegal or improper conduct that rep- tect, investigate and remedy any event of fraud or ness is carried out. stakeholders, as well as the markets where its busi- gard to relations between the Company and its guidelines for behavior and rulesof conductinre- ˦ 2015. to theCompany during iaries in2015 ment in GEB subsid Corporative govern- these best practices Implement someof This channel is managed by an independent third down There inare protocols laid also internal It has an ethical channel intended to prevent, de The Code of Ethics establishes and develops - ˦ ˦ ry reforms the necessary statuto Code, and implement porate Governance Updating the Cor - - - - Table 2.Complaintsreceived throughtheCompany’s EthicsChannelin2014. ˦ ˦ necessary. tive, preventive anddisciplinaryactionasmay be through theethicalchannelanddeterminecorrec to ensure the investigation of complaints received meet quarterly or as needed. Auditingof Internal andtheSecretaryGeneral, who oftheCompany,posed ofthePresident theDirector tained in the Code of Ethics. The Committee is com - strengthening of ethical behavior standards con which aims to contribute to the implementation and seen in Table 2. ceived through Channel the as Ethics EEB can be As ofDecember 31,2014,14complaintswerere- ˦ Total numberofcomplaintsreceived by the ˦ ˦ ˦ Free hotlineforColombia. Link ontheCompany’s website. This Committee has among its main functions Additionally, there is also an Ethics Committee, Email address. Events notdefinedascomplaints Consults andEthicalDilemmas Total applicablecomplaints Misappropriation ofAssets 1 Ethics Channel Work-other Concept Others 2 management andHumanRights Good governance, Ethics, Risk Quantity - - 14 3 6 5 1 2 2 Group’s companies. remediate fraud and corruption in and against the Its purposeistoprevent, detect,investigate and Antifraud PolicyandAnti-Corruption forms. Theseinclude: icy of zero tolerance for fraud or corruption in allits specific tools that promote their commitment to a pol- In addition, the Group’s companies have different quire internalaction.Onecomplaintisunder Four complaintswereclosedanddidnotre These correspondtocomplaintsconcerning transparencia http://www.eeb.com.co/empresa/etica-y- More informationisavailableat: other companies. Observations All wereclosed. evaluation. 3 -

49 G4. SO5 G4. 51 - - 3 The formats of adhesion to the Code of Ethics and Ethics of Code the to adhesion of formats The declaration of conflicts of interest were delivered to that those so HumanResources, Management of the alsocould sessions training these attend not did who fill them out. These declarations shall be made annually and this office will responsiblefor organizing them. ˦ ˦ chain, ethical guidelines were ex in the value Moreover, and suppliers through talks or plained to 45 contractors office This Management. Supply of office the by ganized web- published the Supplier Manual on the Company’s eth- with associated documents summarizes which site, thepublication, this to addition In Company. the in ics or229 and recipients, email 508 to emailed was Manual these mails. read recipients opened and of 45% - Good governance, Ethics, Risk Ethics, governance, Good Rights Human and management 2 1 There were 19 sessions of talks related to the to the related talks of 19 sessions were There to adherence which covered Ethics Campaign, EB the Code of Ethics, strengthening the mechanisms Company. the in ethics to related documents and considered to be a didactic way was This training to promote the Code of Ethics among employees and for them to declare their possible conflicts 67% of em- of interest. They were attended by of Committee, Presidential the including ployees, which 100% of its the Code members accepted of of declarations subsequent the made and Ethics conflicts of interest. ˦ the ethical channel; attendance statistics and cov the ethical channel; attendance statistics that say weThus,can werealso recorded. erage 2014: for ˦

G4.SO4 - - Initially, this campaign was carried out in the the in out carried was campaign this Initially, out carried Directorate Auditing Internal The The Directorate of Internal Auditing prepares the the prepares Auditing Internal of Directorate The Policies and procedures for Policies and procedures and training to combat communication corruption In 2012, the year in which the ethical channel channel ethical the which in year the 2012, In were Anti-Corruption and Policy Anti-fraud and em- many trained actively Company the launched, including allof those on the President’s ployees, - cam awareness an 2014, and 2013 In Committee. prevention the concerning out carried was paign FinancingTerrorism and of Laundering Money of (AMLFT) using the film clubformat and showing called the campaign was “Home Alone;” the movie a adapting didn’t“I AMLFT,“ prevent to how know to be conveyed. dialog message that was to the Rooms were adapted for the screening of the film to out handed were materials campaign-related and tick (movie environment theater movie a resemble and popcorn). et, soda, and then was Bogota subsidiaries (EEB and TGI) extended to the Cálidda and Contugas affiliates in sessions of talks in Guatemala. Five and Trecsa Peru to MLFTrelated out were carried EEB in prevention which contractors, in-house and employees new for contributors. the invited 70% of were attended by con- and employees at aimed campaigns training of money prevention on ethical behavior, tractors of use the and terrorism of financing and laundering desired level of maturity in terms of risks, controls risks, controls in terms of maturity of desired level and corruption. fraud to containingPlan,aspects different Audit Annual Au Annual The review. for priority the determine dit Plan 2014 up to December 2014 was fulfilled 100%. by - - 2014 Report Management Sustainable EEB With the recommendations thus generated, Cor With the recommendations thus generated, Analysis and identification of risks Analysis and identification related to fraud and corruption porate Planning defined action plans to achieve the the achieve to plans action defined Planning porate In 2012, with the support of a specialized firm, the the firm, specialized a of support the with 2012, In of control and risks identify to worked Company process- internal sensitive in corruption and fraud and validated, were risks identified the 2013, In es. - val was controls respective their of operation the the to related issues to different led This idated. standardization of the descriptions of said risks and quantity the streamlining the as well as controls, de- of lines three the of strengthening the risks, of control system as well as the fense of the internal risks. IT need to identify The Anti-Money Laundering and Financing of and Financing Laundering The Anti-Money Manual ( (SIPLA) Terrorism Board Company’s the by approved was Manual The August of 1507 No. in Minutes stated as Directors, of of Circular 060 with External in compliance 2013, 15, This Superintendent. Financial Colombian the of 2008 Manual contains the policies, controls and procedures mon of risk the prevent to Company the by adopted ey laundering and terrorist financing to the investor stakeholders. and The Manual of Anti-Money Laundering Financing of Terrorism Best Practices the law, by required actually be not may it while Even has implemented this Manual based on bestCompany andlaundering money of risk the mitigate to practices the for controls applicable including financing, terrorist may with whom the Company Stakeholders various dealings. have 50 Good governance, Ethics, Risk 1 2 3 EEB Sustainable Management Report 2014 management and Human Rights

˕˕ WHAT DID WE DO IN 2014? explain general concepts of internal control and ˦˦ Limited growth of operations in GEB target coun- responsibility of everyone involved. tries. ˦˦ The ETICAEB campaign was carried out in the var- ˦˦ In order to move towards best practices to miti- ˦˦ Loss of relevant business opportunities for the ious Group companies. By 2014, its main objec- gate the risk of money laundering and financing Group’s growth. tive was to promote adherence to both the Code of terrorism, the EEB compliance officer has made ˦˦ Unanticipated or anticipated regulatory changes of Ethics and the Conflict of interest statement. extended the Company’s procedures and controls that cause the decrease in revenue in portfolio In this regard, information and documents relat- to subsidiaries so that they also adopt such prac- companies (controlled and uncontrolled). ing to the campaign were shared with employees tices and develop synergies within the companies ˦˦ Restrictions on project finance transactions or in- and stakeholders in the various meetings. These that make up the Energía de Bogotá Group. vestment. materials included the ETICAEB seed in order to ˦˦ Fall of the value of debt instruments issued by plant values in all actions performed inside and ˦˦2.3 RISK AND CRISIS MANAGE- EEB. outside the Company. MENT ˦˦ Obtaining a meager level of profitability and / or ˦˦ In compliance with the provisions of paragraph dividends from companies in the portfolio. 2.2.3 of External Circular 060 of 2008, issued ˕˕ WHY IS IT IMPORTANT? ˦˦ Contingencies of great impact concerning the by the Colombian Financial Superintendent, the continuity of critical operations of the Group com- Compliance Officer’s Report was presented to the The Company’s integrated risk management contrib- panies. Board of Directors in 2014. utes to the fulfillment of the corporate vision and prin- ˦˦ Failure of projected demand. ˦˦ As part of the opening of the campaign concern- ciples, ensures business continuity, helps to mitigate ˦˦ Inclusion of Empresa de Energía de Bogotá in ing self-regulation, messages were transmitted on and / or decrease uncertainty and protects GEB re- AMLFT restrictive lists. the corporate blog posts as well as on screens in sources from material risk. On a general level, we ˦˦ Disrespect for human rights enshrined in the Uni- the Company and its subsidiaries’ installations to have identified the following risks: versal Declaration of Human Rights and the principles of the ILO. ˦˦ Negative impact on reputation. ˦˦ Rulings against Group companies in any jurisdiction. ˦˦ Access to confidential information by internal or CHALLENGES ˦˦ Continuing the implementation of the self-reg- external entities. ulation campaign and the reinforcement of ˦˦ Internal or external fraud events. Ethics and the Fight against Corruption topics such as the Code of Ethics, the An- ti-Fraud and Anti-Corruption Policies, as well ˕˕ HOW DO WE DO IT? as the prevention of Money Laundering and Terrorism Financing, hoping to reach coverage Comprehensive risk management is part of the Cor- of 100% of employees. porate Strategic Plan; there are also a Risk Manage- ment Policy and Risk Management System, which establish guidelines for the identification, mitigation, control and monitoring of risks that make up the system.

52 53 Good governance, Ethics, Risk 1 2 3 EEB Sustainable Management Report 2014 management and Human Rights

The evaluation of the impact of risks of the criteria The leading area of integrated risk manage- mentioned in Figure 6 for EEB. ment is the Vice President of Equity Portfolio and Corporate Planning, which is responsible for:

PEOPLE BUSINESS OPERATIONS ˦˦ Propose strategies and guidelines for integrated This evaluates the impact on the physical This evaluates the impact caused risk management in the corporate group. integrity of workers, contractors and the by the strategic objectives and ˦˦ Orient areas, managers and risk managers in the population located in the zone of influence processes. identification, assessment and / or updating of of the Group’s operations. risks and controls. ˦˦ Follow up on controls periodically. ˦˦ Promote the creation of a culture of risk management throughout the organization and apply the treatment to follow in case a risk materializes.

In Figure 7 the risk governance structure is presented.

Presidency and Board of Directors

Internal Audit image o

ECONOMICS repuTaTiOn This evaluates the impact This evaluates the impact on the lessening of the on the Group’s image and Area responsible for risk management Group’s EBITDA. reputation.

Directors

COMMERCIAL OR CLIENTS Risk Managers This evaluates the impacts of the Group’s operational revenue. Employees

Figure 6. Criteria for assessing the impacts of risks in the Company. Figure 7. The structure of risk governance.

54 55 G4.14 56 CHALLENGES ˕ avoid the materialization of saidrisks. of plementation established controls, in order to management methodology and follow-up in the im risk of implementation and definition the in ress ManagementIndex,wecan see theRisk prog- With ˦ ˦ ˦ ˦ ˦ activities: of the following implementation Should a risk materialize, the policy includes ˦ ˦ ˦ ˦ ˦ ˕ trols. If needed, update the risk assessment and con- al andpreventive. Track the effectiveness of controls, both remedi- tions tomitigaterisk. ac preventive or controls implement and Define tions tominimize impact. ac corrective or controls implement and Define image, etc.). terms, economic consequences(in real andits risk Identify the cause that led to the existence of the Risk andCrisis HOW DOWEASSESSIT? Management EEB Sustainable ManagementReport ˦ ˦ levels. management atall tify, and control risk toiden- organization ing the culture in the Continue strengthen 2014 - - - -

˦ ˦ ˦ defined by theGroup: identified. public order, implementationtimes,amongothers,are theenvironment, ical construction, thesocio-political stage of the project are identified, concerning the phys- tually starts the construction process, all risks for each project, the moment in which EEB is awarded it and ac in itsanalysisoftheopportunity. Ifitisaconstruction or project, it performs an identification of potential risks When EEB decides to venture into a new business area ˦ mitigation measures to avoid the materialization of risks: as implemented and defined are controls following The ˦ ˦ ˦ Identifying project risks ˦ ˦ ˦ able risks. agement and insur Integrate risk man- opportunities. investment in odology Implement risk meth- Risk: internalorexternalfraud events. EEB has identified the following risks among those Cause: lackofcontrolinoperations. holders, otherstakeholders. share- entities, control andopinion thepublic with confidence and image loses GEB Consequence: - ˦ ˦ and processes. in thestrategic maps dance with changes Update risks in accor - - rialized. To date, the risk of corruption in EEB has not mate ˦ ˦ ˦ ˦ ˕ ˦ ˦ ˦ ˦ ˕ business opportunitieswere identified. Methodological guidelines forriskanalysisof leaders insubsidiaries who managerisks. others. Likewise, training was organized for agement, External Relations, Auditing, among concerned specific processes,specifically Man- were aimed at the managers of each area and and itssubsidiaries. These training activities tion ofplansandcontrolsrisksintheCompany gy for the identification, assessment and defini- Training was carried to explain the methodolo- ect risks. Inclusion of PMI methodology in identifying proj- strategy, specifically: and plans tegic key processes for compliance system in accordance with changes in the stra- management madetotherisk Adjustments were • • • • • • • WHAT DIDWEDOIN2014? of fraud. company positions toreduce the likelihood The separation offunctionsbetweenvarious of fraud. company positions toreduce the likelihood The separation offunctionsbetweenvarious they materialize. Liability in regard to Company risks should ERA RiskManagement Tool. Tables for theassessment of risk. and definition of risks and controls. Methodology for identification, assessment The GEB Risk ManagementPolicy. 1 2 management andHumanRights Good governance, Ethics, Risk - ˕ ˕ Compact of the United Nations, especially inrelation Nations,especially Compact of the United agement based on the of ten the principles Global In theGroup, man- their acceptanddirect companies ly, theCompany mustrespond. the rights of indigenous peoples, for which, ultimate- of security forces and discrimination and violation of order to avoid cases and of child forced labor, abuse ty suppliers,contractors toworkwith and partners in of human and labor rights, creating the responsibili there may chain, supply ofviolations risk beincreased uation orre-victimize thoseaffectedby it. ly careful in itsactions in order not to worsen the sit by armed actors; making the Company beparticular posed in regard to the risks and dangers presented ex and vulnerable it making conflict, in country a in of theCompany may establishwiththem. bond that employees or third parties acting onbehalf due the its transmission infrastructure or the type of violated in regard to their rights. This can occur either some stakeholders may feel particularly affected and have a significantimpact on the environment and that each and every one of its businesses and projects The Empresa de EnergíaBogotá understands that OF HUMANRIGHTS 2.4 RESPECTFORANDPROMOTION ˦ ˦ ˦ ˦ ˕ ˕ To that extent, theCompany isaware thatinits The Company alsohas the challenge of operating tions. Process risks were updated by the different sec assessment. risk table tothenew sessed according Business continuity risks were reviewed and reas HOW DOWEIT? WHY ARETHEYIMPORTANT 3 ------57 Good governance, Ethics, Risk 1 2 3 EEB Sustainable Management Report 2014 management and Human Rights

to the promotion and protection of human and labor ˕˕ WHAT DID WE DO IN 2014? rights. Additionally, they follow the work carried out by the Local Network of the Global Compact and the Busi- ˦˦ The identification of risk scenarios raised in the ness for Peace guidelines. light of processes and threads of the Company To manage this issue on an internal level, have de- was completed. As a result of this project, risks fined mechanisms such as the definition of contractual related to human rights were formatted within clauses that contractors welcome the ten principles of the map of corporate risks. the Global Compact. Additionally, we have identified a ˦˦ During 2013, the implementation of the plan of risk linked to the issue of human rights within corpo- action resulting from the identification of busi- rate risk map in order to give greater mainstreaming ness impacts in terms of human rights; in 2014, and strengthen management in this regard. progress was made in defining corporate risk This topic has been approached from the highest in- and identification of the controls for the same. stances of government and the same controls as those In 2015, the Company plans to advance its work administrative and operational fronts of the Company plan, and it will review risk controls on human will be applied. rights and monitor their compliance and results.

CHALLENGES ˦˦ DevelopDesarrollar a work un planplan dewith trabajo associat -˦˦ Monitorear˦˦ Monitor implementation la implementación and outcome edcon corporate los controles risk controlsasociados in termsal y elof resultado periodic risk de management los reportes reports. Respect for and Promotion of ofriesgo human corporativo rights, in en which derechos scenari - periódicos˦˦ Strengthen de gestión the management de riesgos. on hu- Human Rights oshumanos, demonstrating en el que the lackse alineen of respect ˦ ˦ Fortalecerman rights la gestión during 2015,en dere basedon forlos escenariossaid controls de areirrespeto implemented con chosthe humanos Colombia durante Guidelines el 2015, initiative is- andlos controles aligned to que mitigate se implemen or eliminate- consued base by en the la iniciativaIdeas for GuíasPeace Foun- saidtan pararisk. mitigar o eliminar el Colombia,dation. de la Fundación Ideas riesgo. para la Paz.

58 59 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

3. Create value for shareholders

The Bogotá Power Company seeks to generate economic value for shareholders through business expansion and investment in the energy sector in the Americas, the growth and consolidation of its subsidiaries, and sustainable and responsible profit maximization in order to give in-

creasing benefits for development back to the Bogotá.

For detailed financial information see chapter 3. Financial Statements

3.1 GROWTH AND MAXIMIZING porate Strategic Plan (CSP), which sets goals and PROFITS WHY IS IT IMPORTANT? projects or initiatives to be undertaken by each of the partners. ˕˕ HOW DO WE ASSESS IT? The CSP is defined for five years; its targets guide the corresponding financial planning, which permits Growth and maximization of profits contribute to- the verification of the consistency of the figures, poli- ward the consolidation and sustainability of business cy compliance and any restrictions that might be set. in the long run, enabling the Company to a source of In parallel with financial planning, the portfolio of generating economic, social and environmental val- business and investment opportunities (or pipeline) ue for its shareholders and other stakeholders. Like- is defined; this is designed to identify and prioritize wise, at the industry level, they are oriented toward business opportunities in both initiatives involving the consolidation of the energy sector with interna- developmental stages of projects (greenfield) and the tional projections for the country to strengthen ener- acquisition of ongoing projects (brownfield). gy independence, to the extent that the connection Commitment 1 between supply and demand for energy is viable. ˕˕ HOW DO WE DO IT? ˕˕ HOW DO WE ASSESS IT?

In EEB, management objectives of growth and prof- System efficiency is evaluated by monitoring the it maximization begin with the definition of the Cor- goals of the CSP, a process that is measured on a

60 61 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

quarterly basis. Corrective action plans are defined ˦˦ Definition of strategy and prioritization of in- PERSPECTIVE DESCRIPTION PERFORMANCE COMPLIANCE QUALIFICATION as deviations are detected. vestments. ˦˦ Implementation of the portfolio investment Financial and Financial perspective In 2014, the financial Dividends were distributed A grade of 5 out Economic measure the permanent results related to pro- to shareholders in a timely of 5 was achieved Corporative Strategic Plan model in parent company and subsidiaries. and growing generation fitability and revenue manner. The Group’s EBITDA (Source SIG). ˦˦ Analysis of investment proposals in line with the of value and dividends growth were success- and EVA indicators surpas- The Corporative Strategic Plan defines how the cor- growth strategy. for shareholders and the fully achieved. sed established targets for sustainable growth of 2014 due to good financial porate vision will be; it comprises strategic objec- ˦˦ Advising the parent company and subsidiaries business. management of the opera- tives, indicators, initiatives, projects and indicators, for the formulation of strategic plans (Mission, ting businesses and compa- which are formulated and developed for all areas Vision, Strategy, Strategic Map: objectives, in- nies in the stock portfolio. of the organization. dicators, targets, initiatives and projects). In EEB management permanently monitors com- ˦˦ Adjustments in the Corporate Planning process pliance of the Corporate Strategic Plan (CSP), along according to methodological changes. four lines: ˦˦ Quarterly follow-up of both the parent company’s and subsidiaries’ plans. ˦˦ Financial and economic. ˦˦ Strategic Meetings (RAE) for making decisions ˦˦ Customer, market and business. that contribute to fulfilling the Group’s goals. Customer, The customer perspecti- In 2014, satisfactory Recognition of the EB Group A grade of 4,3 out market and ve measure compliance results were achieved as a world-class group in of 5 was achieved ˦˦ Corporate Processes. ˦˦ CSP Update Meeting with the participation of the business with the value proposal, for the increase of 2014 produced satisfactory (Source SIG). ˦˦ Learning and growth. subsidiaries; RAE learning to update the CSP. recognition of the busi- volume of transported results, the percentage of ness group as world-class gas belonging to TCI, income grew due to invest- with global responsibility, increase of Cálidda’s ments as well as the income In 2014, adjustments were made to the strategic Financial Management as well as the growth of customers, and impor- of projects that entered into goals in consideration of the growth strategy along opportunities in target tant distinctions were operation. these four lines. Table 3 shows the results. The planning and management of resources is lead countries to deal with the given to the Company needs of energy demand. by the Finacial Vice-Presidency of the Energía de ˕˕ WHAT DID WE DO IN 2014? Bogotá Group in order to guarantee the registration, preparation and timely submission of financial As part of the Corporate Strategic Plan, and in line information, and, thusly, optimize its use, facilitate with the Company’s growth strategy, the New Busi- easy access to local and international sources of ness Development Model was implemented. This funding through two-way communication with fi- project aims to identify and develop initiatives to nancial markets, and provide reasonable, under- acquire businesses that are up-and-running or pro- standable information to its users. moting energy projects that will enable the Com- The Vice-Presidency relies on the Management pany to achieve its growth targets, and have risk of Financial Planning and Insurance, as well as that levels and rates of return, which are more favor- of Finance and Investor Relations, Accounting and able to shareholders. Treasury, which are directly involved in the Compa- Similarly, in 2014 the following activities related ny’s growth and expansion in consideration of the to Corporate Planning were carried out: following activities:

62 63 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

PERSPECTIVE DESCRIPTION PERFORMANCE COMPLIANCE QUALIFICATION

Corporate The internal process In 2014, satisfactory In 2014, the Company A grade of 4,3 out Budgetary management. Management of accounts receivable. Processes perspective is aimed at results were achieved closed growth projects re- of 5 was achieved Financial projections. Accounts receivable. making the EB Group be for strategic objectives garding the transmission of (Source SIG). recognized as a world- aimed at growth, com- electricity and gas and port- Financial analysis. Temporary Investments. Financial Resource class group that is inno- petitiveness as well as folio companies, the Empre- Insurance management. Planning and management vative, has global res- the sustainability of sa de Movilidad de Bogotá Insurance ponsibility, with business the company and its S.A.S. ESP subsidiary was processes strategically business. founded in Colombia, we ca- aligned to contribute to rried out prefeasibility, fea- the growth and compe- sibility and FEED studies for Banks and bank reconciliations. titiveness of current and gas thermal plants in Colom- Financing and Operation future business. bia and the Marcona plant in Investor relations. Tax management. Investor logs Peru. Debt structuring and Management. Relations Fixed assets and inventories. Additionally, the Regula- Control body reports. tory Intelligence System, the Integrated Risk Management Petty cash. Model, the International Fi- nancial Reporting Standards, the Group Identity Manual were implemented; likewise we continued with the implementation of the of Infor- mation Security System, the Business Continuity System and the Foundation’s pro- Figure 8. The Activities that correspond to the Financial Vice-Presidency grams of strategic priorities with communities.

˦˦ The budget and projections of the Company and ˦˦ Planning the legal and tax obligations of the Com- The learning and growth In 2014, progress was In 2014, the competency A grade of 3 out the Group. pany and ensuring timely compliance of the same. perspective is aimed made in the develop- model was defined, com- of 5 was achieved ˦˦ The evaluation of financial risks and their coverage. ˦˦ Monitoring the accounting and tax management of at strengthening the ment of human talent, prising of: core, Group (Source SIG). managerial and techni- sustaining organiza- Leadership Model, improve- ˦˦ The management of financing of EEB and the sub- all Group companies nationally and internationally. cal skills of employees tional climate and the ment and internalization of sidiaries of the Group. in accordance with the implementation of Corporative values, in the ˦˦ Relations with investors and shareholders, in which These Activities contribute to growth and maximizing Learning and Challenges of EB Group technological tools. Programa Super Bien (Super growth and achieve organizatio- Measurements of work Good Program) activities; direct communication on the performance of the the results of the Company and the Group, as they nal culture that is inno- environment, measu- this program is designed to Company and its subsidiaries is promoted. enable: vation-oriented towards ring skills and knowle- create balance in family, per- ˦˦ Monitoring cash flow and surplus management, ac- ˦˦ Accessing resources for financing EEB and its productivity, business dge management will sonal and work life, as well and is aligned with GEB’s be carried out in 2015. as in the implementation of counts receivable, accounts payable and debt. subsidiaries in terms of financial efficiency and strategy . the corporate information ˦˦ The development of quality financial information of optimization, in banking, capital and multilater- technology model. the Company and the Group from individual and al markets. consolidated financial statements. ˦˦ Strengthening strategic communication with Table 3. Results of Corporative Strategic Plan for 2014. ˦˦ Managing the implementation of International Finan- the financial and capital markets, strengthening Note: These results are presented with a final date of December 31, 2014. cial Reporting Standards (IFRS) in Group companies. confidence in regard to EEB and its subsidiaries,

64 65 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

allowing them to engage with local and interna- During 2014, there was an anticipated closing reduced net income from COP 1.38 trillion at the margin of 65.6%, reflecting a growth of 44.83% tional investors and shareholders. date of October 31, 2014, with another for the pe- close of October 31 to COP 0.98 trillion as of De- compared to December 2013, which reflects high- ˦˦ Keeping users, investors and shareholders in- riod from November 1 to December 31, 2014. cember 31, 2014, 16.28% higher than that regis- er dividends and interest earned (COP 1.62 trillion) formed of activities to be carried out by the Com- For the period January - October, growth in tered on December 31, 2013, with an EBITDA of and higher operating revenues (COP 2.31 trillion). pany and the Group in order to demonstrate the operating revenues associated with the transmis- COP 1.55 trillion only for EEB. At the consolidat- The composition of EBITDA by company type management’s performance. sion business, dividend income, implementation ed level, EBITDA reached COP 2.57 trillion with a (subsidiaries and affiliates) can be seen in Figure 9. ˦˦ Managing and controlling the Company’s resourc- of financial strategies to efficiently manage finan- es for optimum and efficient management. cial resources and increased investments have all ˦˦ Managing the proper placement of temporary prodcued remarkable results. Operating revenues 2,81% surpluses, for greater financial benefits. from power transmission business had a higher lev- 0,59% ˦˦ Recognizing all financial transactions effected by el than budgeted, COP 96.179 million compared to TGI 0,57% the Company, to provide timely and quality finan- projected COP 91 billion 678 million, representing Decsa/EEC 3,01% cial information to investors, shareholders and an increase of 5%. Additionally, dividend income Cálidda, Contugas & EEBIS Pe 4,52% the public in general and thus supporting deci- exceeded the budget by COP 570.036 million. 31,20% Emgesa sion-making. The financial management of subsidiaries includ- 17,37% Codensa ed the structuring and implementation of TGI’s div- Gas Natural For EEB, managing and keeping all users aware of idend policy concerning shareholders for about COP Promigas information on commercial, financial and operation- 517 billion. This allowed for a more efficient capital ISA, REP & CTM al performance has increased levels of confidence structure, both individually and as a group. Others in both investors and shareholders. During the last In October 2014, EEB reported a net income of EEB Transm, Trecsa & EEBIS Gt seventeen years, the Company has maintained a COP 1.38 trillion, representing an increase of 63.7% virtuoso rate of financing, characterized by low- compared to the close of 2013. Due to management er capital costs and greater ease of obtaining re- and the optimization of financial resources, EEB es- sources for growth projects. This performance has tablished a dividend policy for the January-October boosted trading in its securities in the local and in- 2014 period of over COP 1.1 trillion, the Compa- ternational capital market, as it reflects the gener- ny’s highest dividends ever generated, reflecting its ation of value and maximizing profits for interest growth, strength and financial results for the bene- group formed by shareholders and investors. fit of its many stakeholders. During the period November 1 to Decem- Financial performance in 2014 ber 31, 2014, there was a peso devaluation of

nearly 17%, increasing the rate of exchange from 2,91% EEB remains a financially strong company with ex- COP 2050.52 to COP 2392.46 to USD for the same 31,02% 6,11% cellent EBITDA margins, both operationally and net dates. This resulted in an increase in expenses for in front of comparable companies, thus maintain- stock method by COP 528 billion originated mainly ing a level consistent with its investment grade debt in the exposure caused by the devaluation of finan- Figure 9. Composition of EBITDA by company type (subsid- rating, due to the cash generation produced by in- cial debt of the IELAH and TGI subsidiaries, gener- iaries and affiliates). vestments in subsidiaries and affiliated companies. ating an accounting loss of USD 399 billion, which

66 67 G4.EC1 68 **This figurecorrespondsto the allocationofprofitsandreservesavailabletoshareholders. *This figurecorrespondstothe donationsmadebytheCompany,whichin2014were made onlytoGEBFoundation. Table 4.Economic value generated the Group’s EBITDA has risen to COP 1.49 trillion, in It is important to note that, in the last three years, (Figures inmillionsofCOP) shareholders)** (reservations - Appropriations amortizations -other) (depreciation - Reinvestment Community* Suppliers andcreditors charges) - contributionsand Government (Taxes Pensioners Contributors operational) (operational andnon- Net incomereceived Total distribution Stakeholders EEB Sustainable ManagementReport 989.298 690.701 139.774 989.298 56.774 46.199 28.358 24.052 3.440 2012 69,82% 14,13% 5,74% 0,35% 4,67% 2,87% 2,43% 2014

- 1.145.060 ber 2014,itwas USD2.57billion. December 2011, it was COP 1.08 and trillion Decem- 1.145.060 843.560 140.199 41.748 59.696 27.682 29.260 2.915 2013 73,67% 12,24% 3,65% 0,25% 5,21% 2,80% 2,56%

- 1.457.249 1.457.249 980.855 206.207 144.452 59.583 26.992 37.745 1.415 2014 67,31% 14,15% 4,09% 0,10% 9,91% 2,73% 2,59% - 1 2 Create value forshareholders Commitment 1:

3 69 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

INVESTMENT TYPE PRESENT VALUE YIELD. INVESTMENT TYPE PRESENT VALUE YIELD.

Domestic Public Debt Bonds 4.055.655.127 7,54% Republic of Colombia 5.269.891 6,58%

Ordinary Bonds 11.815.515.367 9,34% Economic Development Agency 10.863.315 7,49%

Collective portfolio management 417.717.364 3,09% Ecopetrol Bonds 257.916 7,82%

Bank Term Deposit Certificates 53.779.542.034 4,56% Time Deposits 149.771.801 0,36%

Savings Accounts 1.699.184.933 3,89% Deutsche Bank AG, London Branch 144.344.617 6,53%

TOTAL 71.767.614.825 5,49 TOTAL 310.507.540 3,24

1% Bank Term Deposit Certificates 0% Deutsche Bank AG, 16% Savings accounts 4% London Branch

Domestic Public Debt Bonds 2% Corporación de Ordinary Bonds Fomento Andina Collective portfolio management (the Andean 6% Development 48% Corporation) 2% Republic of Colombia Time Deposit Ecopetrol

75% 46%

Figure 10. Investment Portfolio in COP 2014 Figure 11. Investment Portfolio in USD

70 71 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Investment grade rating Management of Finance and Investor Relations have With price appreciation of 17.24% ... EEB shares closed 2014 contributed to the positive performance of the share at COP 1,700 In 2014, there was some improvement in investment price during 2014 (Fig. 12). This is reflected in an grade ratings issued by major agencies. increase of 17.24% by year end with a closing price H of COP 1,700 per share. 1.800 25.000 At the international level: Similarly, in what was probably one of the most important events for the Company during 2014, the E ˦˦ FFitch Ratings has upgraded the corporate rating acquisition of IELAH, an investment vehicle 31.92% from ‘BBB-’ to ‘BBB’ with a ‘stable’ outlook. of which is owned by TGI, as well as the announce- M ˦˦ Moody’s affirmed the corporate rating as Baa3 and ment by Ecopetrol of its intention to sell its stake in 1.700

upgraded its outlook from ‘stable’ to ‘positive’. EEB. 20.000 ˦˦ Standard & Poor’s upgraded the debt rating of ‘BB The greater liquidity of the stock meant that it re- +’ to ‘BBB-’ with a ‘stable’ outlook. mained part of COLCAP, the most important indicator of the Colombian market, which is composed of L 1.600 At the local level: the twenty shares with the greatest market capitalization indicator. This shows just how much better G 15.000 ˦˦ Fitch Ratings has maintained the highest credit rat- was the stock performance of the Company in rela- B ing of ‘AAA (col)’ with ‘stable’ outlook. tion to other market players.As with equity investors, the Company maintains ongoing communication with I 1.500 Share Price bondholders, as much with EEB as with TGI as well as Cálidda. Thanks to this effort, it has managed to A C The Group’s financial performance and adequate fi- maintain investor confidence and position these debt 10.000 nancial communications strategy implemented by the instruments in the higher states of market prices. K 1.400

A A 2.01.14 COP 1,450 H 02.09.14: EEB receives IR Recognition, issued by the F B 27.05.14 1st payment of dividends, Colombian Stock Market17.11.14: UPME adjudica a EEB

total amount: COP 196,844,435,244 I 17.11.14: UPME awards EEB the Rio Cordoba Project 5.000

C 08.05.14: UPME adjudica a EEB proyecto 1.300 Sogamoso-Norte J 19.11.14:Ecopetrol decides to sell 7% of EEB shares J D 20.05.14: UPME awards EEB the Bolivar D

project K 27.11.14: 3rd of dividends, total amount: COP E 02.07.14: TGI, a subsidiary of Bogota 196,844,435,244

Energy Group acquires 7.78% of the L 23.12.14 : EEB declared dividends in the amount of 1.200 0 Pacific Pipeline rights COP 1.1 trillion. With a dividend per share of 119.90, F 26.06.14: 2do pago de dividendos, payable in 2 installments on 06/25/15 and 10/28/15. Jul-14 Oct-14 Jan-14 Jun-14 Apr-14 Feb-14 Mar-14 Dec-14 Sep-14 Nov-14 Aug-14 May-14 monto total: COP 196,844,435,244

G 07.07.14:EEB acquires 31,92% of shares M 30.12.14 COP 1,700 Figure 12. Valuation of EEB shares in 2014 in TGI M Note: EEB is part of the basket of stock of the principal local equities indices: Colcap, Coleqty, Colir.

72 73 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Figure 13. EEB Shares –COLCAP Index 2014. Figure 15. TGI Bond Price 2014. Source: Bloomberg Source: Bloomberg

Standarized to January 2, 2014, last price Last price 105.477 120 Maximum on September 6, 2014, 109.068 109.000 EEB OK Equity 117,24 Average 106.496 117,24 COLCAP Index 93,87 Minimum on June 2, 2014, 103.524 115 108.000

110 107.000

105 106.000 100 105.477 105.000 95 93,87

90 104.000

85 103.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Figure 14. EEB Bond Price 2014. Figure 16. Cálidda Bond Price 2014 Source: Bloomberg Source: Bloomberg

Last price 97.967 Last price 106.760 Maximum on March 9, 2014, 100.793 101.000 Maximum on September 6, 2014, 109.888 Average 97.227 Average 107.561 Minimum on March 2, 2014, 93.221 Minimum on March 2, 2014, 103.524 110.000 100.000

109.000 99.000

108.000 97,967

97.000 107.000 106,760 96.000 106.000

95.000 105.000

94.000 104.000

93.000 103.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

74 75 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Figure 17. Empresa de Energía de Bogotá S.A. ESP New Cover 2014. New Cover 2014 ˕˕ WHAT DID WE DO IN 2014? ˦˦ The development of a new model for the consolidation of financial projections, which permited the Financial management and insurance incorporation and updating of individual projections

Associated brokers restart EEB planning of EEB and of each of its subsidiaries, as well as cover, recommendation: increase of investment projects in which the Group partici- participation in the portfolio ˦˦ The Company formulated the methodology for as- pates or plans to participate. sessing counterparty limit for temporary cash investments in local and foreign currency, which was Management of finance and investor applied during the year. relations Securities assessors start EEB ˦˦ A model was developed to determine the amount of cover, recommendation; increase participation in the portfolio efficient coverage for Cálidda billing, which presents ˦˦ EEB closed the acquisition of 31.92% of the Bancolombia very short-term exposures to fluctuations in the PEN shares of TGI, worth USD 880 million, to buy restarts EEB cover, / USD exchange rate (less than thirty days). the special purpose vehicle Inversiones en En- recommendation: buy ˦˦ Support for TGI operations by foreign exchange ergía Latino América Holdings S.L. (IELAH), 1750 risk hedging in order to limit potential losses from based in Spain, by which The Rohatyn Group

1730 adverse movements in the exchange rate, for a no- (formerly CVCI) maintained its investment in tional amount of USD 150 million. TGI. To this end, EEB capitalized the Transpor- 1710 ˦˦ Management policies for disloyalty and financial tadora Gas Iberoamericana SL (TGISL) company risks, contractual liability, life, among others. Cur- by USD 264 million; this is vehicle constituted 1690 Last price rently, work continues in bolstering the Group’s risk in Spain by EEB for this transaction. This capi-

1670 placement in the insurance market through EEB tal contribution totaled USD 616 million in short- Energy Re Ltd., incorporated as a captive compa- term intercompany loans obtained by TGISL, to 1630 ny for this purpose. complete the total transaction value of USD 880 ˦˦ Between 2013 and 2014, bank guarantees were million. 1610 managed for more than COP 100 billion to se- ˦˦ Through its investment vehicle IELAH, EEB dis-

1590 cure obligations under the tendering and award- bursed the resources of a long-term syndicat- ing of calls for UPME. Likewise, foreign subsidiaries ed loan signed with international banks, led by 1570 were supported with the constitution or renewal of BBVA, Itau, Scotiabank, for an amount of USD stand-by guarantees with international banks by 645 million. This money was intended to repay 1550 about USD 35 million. short-term intercompany loans granted to IELAH 1-Oct 8-Oct 15-Oct 22-Oct 29-Oct 5-Nov 12-Nov 19-Nov 26-Nov 3-Dec 10-Dec 17-Dec 24-Dec 31-Dec 7-Jan ˦˦ There were improvements made to EEB’s capital by EEB and some of its subsidiaries to finance structure BSE, formulating the scheme for pay- the purchase transaction of 31.92% of TGI. ment of the highest dividend in the Company’s his- ˦˦ Trecsa received the disbursement of a loan tory (COP 1.1 trillion, an increase in the dividend granted by Citibank Guatemala to the amount Likewise, EEB has managed to maintain good share ated coverage of shares during 2014 which is most per share of 86%). of $ 87 million, with a term of one year, which performance, which is why analysts recommend satisfactory for the Company, as it highlights the ˦˦ The optimization of available cash in the subsidi- will be used to complete that company’s invest- buying EEB shares or increasing their importance work carried out by the Group’s Management of Fi- ary TGI for COP 517,000 million was carried out in ment in the electricity transmission project be- in share portfolios. Similarly, equity analysts initi- nance and Investor Relations. a timely fashion. ing carried out by EEB in Guatemala.

76 77 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

˦˦ The Syndicated Loan Agreement executed on ˦˦ During 2014, 24 investor reports were prepared • Global Emerging Markets Corporate Confer- about possible communication problems with the September 30, 2013, between Contugas SAC, and published, 8 for EEB, 8 for TGI and 8 for Cálid- ence, organized by JP Morgan. Company advisors and for the information of the the signatory banks and Fiduciaria Bogotá da. These reports are sources of valuable infor- • Bonds and Loans Conference · CFO’s, organized website, which was expected to be clear and acces- S.A.as administrative and security agent up to mation for existing and potential investors as they by GFC Conferences. sible. This meant that 100% of respondents stated USD 310,000,000.00, was increased by USD contain a detailed and concise analysis of the finan- • London – BTG Pactual IV Latin Opportunities that they would recommend the Company. 32,000,000.00, of which was disbursed USD cial, operational and business results of the Group’s Conference, organized by BTG Pactual. ˦˦ Likewise, share price reflects in part the manage- 24,000,000.00 in December 2014, the remain- non-controlled companies and their investment. To • II Conferencia de Larrainvial, organized by Lar- ment of the areas of investor relations. In fact, it ing USD 8,000,000.00 is projected to be dis- complement the information disclosed in the re- rainvial Colombia. is used as a metric to evaluate the financial com- bursed in March 2015. The proceeds of this loan ports, ten teleconferences with quarterly and an- • Energy and Infrastructure Forum, organized by munication strategy and to increase investor con- were used to partially finance the works associ- nual results were held with a participation of more Santander in New York. fidence through timely, accurate and complete ated with the Ica Regional Gas Pipeline Project, than 120 market players. • Mexico Investors Forum 2014, organized by announcements. developed by this company in Peru. ˦˦ EEB in the Colombia Inside Out event, organized LatinMarkets in Mexico City. ˦˦ On October 28, 2014 EEB granted a loan to Con- by the Colombian Stock Market; the Company un- tugas of USD 11.5 million. This loan bears an veiled its strategy and expansion plans for analysts ˦˦ The first version of the survey of the relationship annual interest of 6% and repayment thereof and investors in the US and the UK. Likewise, the with investors was carried out; aggregate results is subject to prior repayment of the syndicat- Company also attended specialized international were positive for all questions. Among other things, ed loan. forums, including: initially investors and stakeholders were asked

78 79 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Treasury Management the control bodies (General Accounting Office of • The parameterization of the SAP system was year 2013, which showed a positive balance of the Nation, the Superintendent of Public Utilities, carried out to manage financial information in COP 7 billion 646 million. In regard to the wealth ˦˦ Monitoring and follow-up procedures and trea- the Financial Superintendent, the Bogota District accordance with legal requirements to han- tax, created by Law 1430 of 2010 for the period sury operations of the subsidiaries, TGI, Con- Department of Finance and the Bogota Comptrol- dle multi accounts using three ledgers (IF- 2011-2014, during 2014 the Company paid 19 tugas, Cálidda, Trecsa, EEB GAS S.A.S and EEB ler); and the continuous monitoring of the finan- RS-GAAP FINANCIAL and COL). billion 607 million. Peru Holdings Ltd., EEC, EEBIS Guatemala and cial statements of the subsidiaries of the Group. • the inventory and technical appraisal of fixed ˦˦ During 2014, profit margins for service agree- EEBIS Peru. ˦˦ In accordance with the provisions of Law 1314 assets was carried out in accordance with ments were updated, in accordance with the ˦˦ Management capitalization of TGI Spain for the of 2009 and Regulatory Decree 2784 of Decem- IFRS requirements. The loading of the fig- Transfer Pricing Policy, which defines the costs sume of USD 264 millon. ber 2012, the Company began the process of ures provided by the study was undertaken of the provision of services between companies ˦˦ During the period January - December 2014, convergence of accounting principles general- for each of the fixed assets that make up the in the Group. Also, the information report was COP 4.29 billion was saved in financial costs, ly accepted in Colombia with the International database in the SAP system. elaborated for the tax authorities and the values mainly in dividend payments. Financial Reporting Standards (IFRS). The De- • The actuarial calculations of pension benefits of transfer pricing and supporting information ˦˦ Updating credit quotas with local financial insti- cree defined the scope and regulatory frame- to employees in accordance with the require- were handed in promptly to the DIAN in 2014. tutions to cover cash needs arising from the new work for the preparation of financial information, ments of IFRS were carried out. Thus, the obligation of reporting of all transac- expansion projects at local and international lev- schedule of implementation of the new regulato- • The approval of the Board of Directors was tions with related companies was fulfilled. el, worth COP 2 trillion. ry accounting framework and periods of prepara- obtained to present preliminary opening bal- ˦˦ Structuring short-term operation by combining tion of financial information under IFRS. In this ances according to IFRS accounting proce- Management of subsidiaries cash (USD 209.1 million), intercompany loans sense, the Technical Board of Public Accountan- dures proposed by the administration to the (USD 552.4 million) and local banks (USD 118.5 cy (el Consejo Técnico de la Contaduría Pública body of control and surveillance (Superin- The management provided by the Subsidiaries Di- million) for the acquisition of 31.2% of TGI for or CTCP, for its initials in Spanish) gave Strate- tendent of Public Services). According to the rectorate manages is oriented toward growth and USD 880 million. gic Guidance, ranking Colombian companies into above, and in compliance with Resolution profit maximization and may be summarized as fol- ˦˦ In order to mitigate currency risk in the purchase three implementation groups. EEB was classified 20141300033795 of 30 July 30, 2014, issued lows: of 31.2% of TGI, hedging transactions (forwards) as Group 1 and therefore the mandatory transi- by the Superintendent of Public Services, the were closed for USD 260 million. tion period began on January 1, 2014, and the Company submitted a Preliminary Opening ˦˦ Coordinating and integrating the parent com- ˦˦ During 2014, temporary investments were ad- issuance of the first comparative financial state- IFRS Statement of Financial Position, accord- pany’s activities with subsidiaries as well as be- ministered of an average of USD 261 million and ments under IFRS will be December 31, 2015. ing to the progress of the convergence pro- tween the latter. COP 151 billion 845 million pesos, with an aver- ˦˦ During 2014, we continued with the preparation cess and schedule for the application of the ˦˦ Strengthening corporate institutions through age return of 4.48% for dollars and 4.84% for and adaption activities of technical and human International Financial Financial Reporting building awareness and appropriation of policies, pesos. As of December 31, 2014, investments resources to advance the convergence process Standards (IFRS), as well as for the assests practices and corporate guidelines. of USD 310 million and COP 71.768 billion were with International Financial Reporting Standards conciliation as well as a summary of signifi- ˦˦ Monitoring, management and ongoing evaluation maintained. (IFRS) in accordance with legal requirements cant accounting policies applied at the time. of the performance of the subsidiaries. listed below: ˦˦ Strengthening communication channels with Accounting and Tax Management ˦˦ In regard to taxation, strict compliance with the each of the subsidiaries. • The main areas of IFRS impact on the finan- regulations in effect at the time of liquidation ˦˦ Ensuring compliance with the promise of value of ˦˦ Analysis reports of the individual and consolidat- cial statements of the Colombian subsidiaries and payment of taxes in the territories where it the Group’s current and future business. ed financial statements for EEB were prepared in (TGI and EEC) and EEB were evaluated, so carries out economic activities. compliance with established cut-off dates, with that the most appropriate policies and proce- ˦˦ In April 2014, the Company submitted its income Monitoring the management of subsidiaries in 2014 all requests for financial information required by dures were defined to mitigate impact. and complementary tax returns for the taxable was conducted through different reports: business

80 81 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

analysis reports and ex-post evaluations; valuation of and analyze the performance of the stock portfolio based Subsidiary Achievements in 2014 goodwill (impairment test) in accordance with IFRS; on technical, commercial and financial information. consolidated management report of the portfolio com- The description of the most important milestones of DECSA-EEC To improve the quality and reliability of the distribution system, the company carried out panies; and monitoring reports presented to the boards the subsidiaries in 2014 (controlled and non-controlled) an investment plan for COP 56 billion 965 million mainly oriented toward the Energy Loss of directors. The purpose of these reports is to evaluate is presented below: Recovery Plan, this investment is reflected in the achievement of the target loss rate, which presents a substantial reaching 9.93% as of December 2014, which was the lowest level to date. EEC demand grew 4.31% between 2013 and 2014, and the number of customers amoun- Subsidiary Achievements in 2014 ted to 276,135, of which 276,124 correspond to regulated customers (residential, commercial, industrial and official) and eleven (11) unregulated clients. Trecsa began operation of the Transmission Expansion Plan PET-01-2009, one of Guatema- Trecsa la’s most important energy infrastructure projects, providing power to the Pacific Substa- Information reported to the Board of Directors in December 2014 tion on April 20, which will increase the reliability of the electric system and the connection Assets: COP 611 billion 730 million of new electricity generation projects as well as industrial, commercial and residential Operating revenues: COP 310 billion 574 million users to the system and expanding coverage to new Guatemalan towns. During the last quarter, Trecsa energized the following substations: San Agustin, La Vega II, El Rancho and TGI The General Assembly of Shareholders approved the proposed distribution of profits of 130 Pacific; it also provided energy to 100 km of the first transmission line of 100 km, located billion (100% of the profits of 2013), which was paid to minority shareholders on April 24 between the Chixoy II plant and the San Augustine Substation, in the municipality of San and to the majority shareholder on May 26. Agustín, and Acasaguastlán in the department of El Progreso. A 7.78% stake was acquired in the Pacific Pipeline, a project that aims to transport heavy The overall project progress records a value of 82%, which is 49% in respect to the phy- oil from the Eastern Llanos region to Buenaventura, in order to export it to markets in Paci- sical progress of construction. The construction of transmission lines is 96% complete in fic Asia and the west coast of North America. terms of design and 1075 civil works have been finished, 1024 mounted, 536 kilometers are The Company started the commercial operation of the compressor station to increase available lines while 192 are hung. Regarding substations, there has been a 98% advance transportation capacity of the La Sabana natural gas pipeline. in terms of design and civil works at 19 substations are being carried out, with testing of 11 Fitch Ratings upgraded the corporate credit rating and issuer from “BBB-” to “BBB” with substations is currently underway. a “stable” Outlook. The availability of transmission infrastructure that Trecsa will provide will deliver the The General Assembly of Shareholders approved the proposed distribution of profits of energy required by the country’s households, businesses and industries. 516.532 billion, corresponding to profits for the period January-August 2014. Also during 2014, the Voluntary Projects for Community Benefit (PVBC) improved 20 The international certification in internal quality auditing granted by the International schools, 15 public spaces, 8 projects for water distribution, 3 community centers, 3 impro- Institute of Internal Auditors (IIA) was obtained. TGI was established as the first company vements of housing and 1 productive project, giving a total of fifty one (51) projects. in the district and in the Group to achieve this recognition. The Great Place to Work Institute recognized TGI as one of the best places to work in Information reported in audited financial statements in 2014 Colombia. TGI was positioned at number eleven in this ranking, which is made up of 32 or- Assets: USD 376 million ganizations in different economic sectors. Income from power transmission: USD 0,28 million Information reported in audited financial statements in 2014 Assets: COP 5 trillion Operating revenues: COP 960 billion 346 billion

82 83 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Subsidiary Achievements in 2014 Subsidiary Achievements in 2014

Contugas The Commercial Operation of the Contugas infrastructure started on April 30, 2014, af- REP Perú REP placed bonds for USD 20 million as part of the Seventh Issue of Series A of the Third ter signing the final certificate with the Ministry of Energy and Mines oferu P and Enbridge Program of Corporate Bonds at a fixed annual nominal interest rate of 3.75% and an amorti- Technology Inc., an international inspector, that certifies that the work has met applicable zing term of seven years. standards, thusly declaring the natural gas system suitable for service. At the General Meeting of Shareholders it was agreed to distribute cash dividends for The company already has 29,283 enabled customers (with over 34,000 sales and more than USD 14 million. 33,000 built indoor facilities). Approximately 99% of customers are residential, the remaining EExtension No. 13. It consists of the construction of the 220 kV Substation Pariñas - Re- 1% correspond to the industries, generators and service stations. actor R-10 of 20 MVAR and the 220 kV cell connection of the Talara substation to the Pariñas substation. This project presents progress of 93.98% and it is estimated that it will enter into Information reported in audited financial statements in 2014 operation in the first half of 2015. Assets: USD 411 million Extension No. 14. This consists of the construction of the Reque substation and the insta- Operating revenues: USD 29,9 million llation of an additional 100 MVA in the Trujillo Norte transformer substation. This project has progressed 78.78% and its entry into operation the first half of 2015 is estimated. Extension No. 15. It consists in expanding the capacity of the 220 kV San Juan-Chilca, Ventanilla-Zapallal transmission line and the installation of the fourth 220 kV Ventanilla- Cha- Cálidda Osinergmin, the regulator, published the final decision establishing the distribution tariff for varría circuit and the enlargement of the associated substation. This project shows progress Cálidda for the period from May 8, 2014, to May 7, 2018. The process of determining the of 70.02% and its entry into operation is estimated for the first half of 2015. average distribution rate represented increase of 15.3% for the company compared to the Extension No. 16. Construction of the new Amarilis substation, expanding the capacity average rate of the previous tariff period. of the 138 kV Paragsha II-Huánuco Transmission Lines from 45 to 75 MVA substation and An agreement for the redistribution of transport capacity between power generator Ede- the link between the Huánuco Substation and the Amarilis Substatoin, an alternative for the gel and Cálidda was signed; the latter has the option of receiving three MMscfd of additional output of Paragsha Substation. This project presents progress of 59.92% and it is estimated capacity. Similarly, an agreement with the electrical generator Kallpa (870 mW) was signed, that it will start to operate in the first half of 2016. whereby the company increased its firm distribution contract volume to 11 MMscfd firm and According to the Merco Persons Report 2014, prepared by the Business Monitor of Corpo- its interruptible distribution volume to 33.5 MMscfd. In addition, Cálidda increased its firm rate Reputation Monitor (Merco), the first monitor of worldwide reputation verified and audi- transportation capacity with Transportadora de Gas del Peru (TGP) by 36 MMscfd. ted by KPMG, REP ranks among the top 100 companies with talent and second in the field of A network of 1.2 km of steel and 65 km of polyethylene networks was constructed, and energy and being an attractive place to work. 87.7 km network of polyethylene was fitted out, entering new districts such as Callao and The availability of infrastructure (99.6%) transmission that REP provides allows it to deli- Santa Anita. ver the energy required by the country’s households, businesses and industries. Cálidda has 255,005 registered customers, 55.6% more than that registered by the end of 2013; of which, 98% corresponds to residential customers; the remaining 2% corresponds to Information reported in audited financial statements in 2014 commerce and industry, service stations and generators. Assets: USD 520 million Operating revenues: USD 130 million Information reported in audited financial statements in 2014 Assets: USD 695 million Operating revenues: USD 512 million

84 85 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Subsidiary Achievements in 2014 Subsidiary Achievements in 2014

CTM Perú The Banco de Credito del Peru disbursed a loan of USD 100 million to CTM aimed at prepaying Emgesa Emgesa’s General Assembly of Shareholders decreed dividends for 100% of net income for the Trujillo-Chiclayo Trust, and payment of the remaining amounts related to the construction 2013 equivalent to COP 870 billion 141 million, of which COP 450 billion 465 correspond to of the Trujillo-Chiclayo transmission line. EEB and will be paid in three equal installments. The company opened the Trujillo-Chiclayo-Piura Transmission Line at 500 kV, which requi- Emgesa stated that the Colombian Financial Superintendent authorized the increase the red an investment of USD 128 million and comprises 327 km of line, with which means that global quota of the Program for Issuing and Placement of Ordinary Bonds to COP 850 billion, CTM has over 1,000 km circuits in operation at this voltage level, with a total investment of bringing the total overall quota program to COP 2 trillion 75 billion. USD 500 millions. Within this program, the company announced the placement of the sixth tranche up to Also, the company was awarded the design, financing, construction, operation and main- COP 590 billion and, in addition, the Board of Directors at its meeting authorized the expan- tenance of the Transmission Line 220 kV and Substation Friaspata-Mollepata Orcotuna sion of the global quota of the mentioned to COP 315 billion, reaching a total of COP 3 trillion 220/60 kV project. 65 billion. Of note is the signing of a 30-year Concession Agreement by CTM with the Peruvian gover- Emgesa has an international rating of BBB with a stable outlook by Standard & Poor’s and nment to build and operate the La Planicie-Industriales 220 kV transmission line and associa- by Fitch, with a local rating of AAA issued by the latter. These ratings were confirmed on May ted substations, representing an investment of more than USD 35 million. 12 and 13, 2014. By year end, the Machu Picchu-Abancay-Cotaruse 220 kV transmission line presented phy- The term for the 2012 Program for Issuing and Placement of Ordinary Bonds was autho- sical progress of 94.44% and should start commercial operation in the first half of 2015. It is rized to be modified from two to four years. Natural Gas decreed COP 268 billion 274 million estimated that the Mantaro-Montalvo 500kV transmission line has made physical progress of profit distribution for the year 2013 to be paid during 2014, while the distribution of 100% of 19.96% and its commercial operation is expected at the end of 2016. The Santa Teresa-Su- reserves on May 15, 2014, was also decreed. riray 220 kV transmission line presented a cumulative progress of 95.59% and commercial The General Assembly of Shareholders approved the distribution of profits for the period operation is expected to start in early 2015. January 1 to October 31, 2014, to the amount of COP 210 billion 273 million; the payment of The availability of transmission infrastructure (99.5%) provided by CTM means that it can the same is approved do it in a single amount on December 29, 2014. deliver the energy required to homes, businesses and industries. The accumulated investment of the El Quimbo project is USD 861 million, and there has been progress of 84,9%. Information reported in audited financial statements in 2014 The cumulative investment in the El Quimbo project is USD 861 million and has made Assets: USD 952 million 84.9% progress. Operating revenues: USD 99 million Emgesa’s energy sales are made through long-term contracts (47%), contracts with unregulated customers (20%) and sales on markets and others (33%). Emgesa’s generation accounted for 21.2% of the total system and was greater than that of 2013.

Information reported in audited financial statements in 2014 Assets: COP 11 trillion Operating revenues: COP 3 trillion

86 87 Commitment 1: 1 2 3 EEB Sustainable Management Report 2014 Create value for shareholders

Subsidiary Achievements in 2014 Subsidiary Achievements in 2014

Codensa The Colombian Financial Superintendent authorized the increase of the global quota issue Gas Natural Fitch confirmed the AAA (Col) rating with a stable outlook. of the Program of Issuing and Placement of Ordinary Bonds by Codensa in COP 185 billion, Fenosa The placement term of the 2012 Program of Issuing and Placement of Ordinary Bonds was bringing the total overall quota program to COP 785 billion. authorized to be modified the term placement bond issued in, two to four years. Natural Gas Codensa’s Assembly declared dividends for 100% of the net profit of 2013, equivalent to decreed COP 268.274 million profit distribution for the year 2013 to be paid during 2014, and COP 535 billion 910 million, of which COP 277 billion 944 million correspond to EEB. the distribution of 100% of reserves on May 15, 2014 was also decreed. Fitch Ratings has confirmed Codensa’s national, long-term rating to be AAA (Col) with a The General Assembly of Shareholders approved the distribution of profits for the period stable outlook. January 1 to October 31, 2014 to the amount of COP 210 billion 273 million; a single pay- The General Assembly of Shareholders approved the distribution of profits by COP 352 ment of the same is approved for December 29, 2014. billion 236 million for the corresponding period from January to August 2014, of which COP The company recorded a total of 1,992,876 customers, gas sales were 2,105 mm3; of the- 182. Billion 755 million will be paid to EEB in 2015. se Customers, 99% is represented by the residential and commercial sectors Codensa has 2,772,352 customers, of which about 90% belong to the residential sector; the remainder is comprised of industrial, commercial, official customers, among others. The Information reported in audited financial statements in 2014 loss rate reached 7.19%. Assets: COP 1.7 trillion Operating revenues: COP 1.5 trillion Information reported in audited financial statements in 2014 Assets: COP 5 trillion Operating revenues: COP 3 trillion

Electrificadora EMSA has a base of 274,184 customers (it should be noted that 86% of these belong to the del Meta residential sector, the remaining percentage covers commercial, industrial, government cus- (EMSA) tomers, unregulated, among others), which is 5.6% higher in comparison than in 2013. Energy sales amounted to 68.0 GWh, 6.4% higher than that recorded in 2013. A distribution loss indicator was annualized at 12.80% was recorded. EMSA continues to provide 100% of the electricity service to the La Macarena municipality, Meta department.

Information reported in audited financial statements in 2014 Assets: COP 542 billion 615 million Operating revenues: COP 343 billion 505 million

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Subsidiary Achievements in 2014 Subsidiary Achievements in 2014

Promigas On March 25, 2014, Promigas decreed dividends COP 207 billion 289 million, of which COP EEBIS EEBIS Guatemala focused activity on three projects: 61 billion 658 million correspond to share dividends. Guatemala South Pacífic Ring: This project involves the construction of 90 km of transmission lines, On March 25, 2014, Promigas decreed dividends of COP 207 billion 289 million, of which 4 new substations and the expansion of 3 existing ones, which will be undertaken with five COP 61 billion 658 million correspond to share dividends. sugar mills located in the southwest of the country. The Sociedad Port El Cayao company (SPEC), a company in which Promigas has a 49% The corresponding agreement was legalized and made official on July 11, 2013. The level stake in, was awarded the tender for the construction and operation of the first of importing of investment in the Project amounts to USD 50 million. and regasification of liquefied natural gas (LNG) in Colombia. The plant will have a regasifica- On technical matters, the process began for contracting construction services, the installation capacity of 400 MMscfd and it is planned that operations will start as of 2016. tion and commissioning of substations and tenders for the procurement of transmission lines Similarly, Promigas was awarded construction of Bosconia gas pipeline by Gases del Cari- services. be, which is worth COP 101 billion 500 million, and has a length of 260 km in steel and 90 km Environmental and archaeological rescue activities were completed on the site of the Ma- in polyethylene. dre Tierra Substation, as well as environmental studies by the Ministry of Environment and Fitch confirmed its AAA (Col) and F1 (Col) long and short-term ratings of Promigas SA ESP. Natural Resources. On September 23, 2014, Promigas declared dividends for COP 228 billion 078 million, of In terms of easement, the mills are defining the average price to pay for easement on land which COP 112 billion 325 million correspond to share dividends. owned by others. In December 2014, progress of 36.1% had been made. Of total gas transported up to December 2014 (368 MCFPD), 55% was used by the ther- CEMPRO: EEBIS was notified by Cementos Progreso (Cempro) of the acceptance ofits moelectric sector, 29% by industry and the remaining is represented by the domestic sector offer for the construction of assets to connect to the Guatemalan National Interconnected and CNG. System, involving the construction of a substation with an interrupter and half configuration The implementation of Promigas’ investment projects is progressing as planned. and 2x50 MVA transformation, and approximately 15 km of double circuit transmission lines of 230 kV, with a total estimated investment of USD 19.9 million; it shows 4% of progress. Information reported in audited financial statements in 2014 GENOR: In its first year of operation, EEBIS Peru had sales of USD 3.5 million. Assets: COP 3,1 trillion EEBIS Peru is studying the structuring of energy projects in Peru for potential opportunities Operating revenues: COP 405 billion 254 million for the Group, highlighting the Termomarcona (600 MVW combined cycle) project. The company has concentrated its operations in providing engineering, monitoring, supervision and back office services to GEB subsidiaries. EEBIS Peru has supported Contugas in the supervision of nearly 19,000 enabled connections.

Information reported in audited financial statements in 2014 Assets: USD 37,2 million Operating revenues: USD 747.262

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Subsidiary Achievements in 2014 CHALLENGES cation of EEB’s strategic financial with investors and Management of EEBIS Perú In its first year of operation, EEBIS Peru had sales of USD 3.5 million. the financial market in general as well as strengthen- subsidiaries EEBIS Peru is studying the structuring of energy projects in Peru for potential opportunities ing policies and processes in subsidiaries. For this, it for the Group, highlighting the Termomarcona (600 MVW combined cycle) project. attempts to continue implementing global best prac- The company has concentrated its operations in providing engineering, monitoring, super- tices for disseminating information to the market, vision and back office services to GEB subsidiaries. EEBIS Peru has supported Contugas in the expanding monitoring specialist analysts, incorpo- supervision of nearly 19,000 enabled connections. ˦˦ The development of a capital investment plan of rating foreign financial institutions, actively partici- around USD 800 million for 2015 within the strate- pating in a bigger number of non-deal international Information reported in audited financial statements in 2014 gic growth target of the group. roadshows and establish mechanisms that measure Assets: USD 3 million ˦˦ Acquisition opportunities are being evaluated in the perception of EEB held by investors. Similarly, an Operating revenues: USD 3,5 million countries like Mexico, Chile, Peru and Brazil, among international market whose conditions of uncertainty others. and volatility generate expectations of rising inter- Table 5. Management of controlled and non-controlled subsidiaries in 2014. ˦˦ In regard to opportunities for development and con- est rates, it is a challenge for Management to access struction, the UPME calls for 500 kV transmission finance resources for EEB in conditions of efficiency lines in 2015. and financial optimization. ˕˕ WHAT DID WE DO IN 2014? ˦˦ Updating strategic maps according to the guidelines ˦˦ Treasury Management has the challenge of modern- in both the Corporate Group and its subsidiaries. izing process pertaining to management, operations ˦˦ During 2014 deals worth USD 1,374 million were ˦˦ A better definition of the operational and governance and administered resources. This is to ensure greater closed in the field of electricity and gas, some of structure of EEC SA ESP. profitability, monitor and minimize exposure to risk these are in Peru and Guatemala. ˦˦ Optimize the structure of subsidiaries’ investment in the placement of surplus liquidity and stable finan- ˦˦ Of the UPME calls for open transmission projects vehicles. cial optimization that may be established. Addition- in which the Company participated in 2014, it ˦˦ Comply with the goal of enabled connects per the ally, it must implement synergies in the treasuries of was awarded three projects, the most note-wor- Contugas BOOT contract and the increase of cus- the companies comprising the Group, in the quest for thy of which is the contract for the design, con- tomer base. efficiencies in resource management. struction, operation and maintenance of the ˦˦ Comply with the commercial operation of the Plan of ˦˦ The Management of Accounting has the challenge Sogamoso-Norte_Nueva Esperanza 500 kV trans- the Energy Transport System PET 1 2009 project. of completing the implementation of International mission line. It is the first time the company will ˦˦ Continuation of the implementation of Cálidda’s op- Financial Reporting Standards (IFRS) and the issu- work on the development of a 500 kV project. erational, commercial and financial strategy to reach ance of the first audited financial statements under ˦˦ The good financial performance of companies in 455,000 connected users in 2016. the new accounting regulatory framework in Colom- the equity portfolio was also reflected in 2014, ˦˦ The Management of Financial Planning has the chal- bia on December 31, 2015. Similarly, the system- where most uncontrolled decreed dividends for lenge of implementing a system that will streamline atization of the consolidation process of the Group’s BSE. In this regard, the third quarter of 2014 the process of budget planning and raise awareness financial statements has been proposed in order to these amounted to COP 892 billion 317 million. of projections with information concerning subsidiar- provide financial information in a more optimal man- Likewise, controlled and operating companies ies and the Vice Presidency of the Equity Portfolio in ner with higher standards of quality and reliability to generated increased revenues for the Group. terms of new business. improve consolidation times, while allowing a more ˦˦ The Management of Finances and Investor Relations efficient analysis of the financial statements of the has challenges such as consolidating the communi- Company and its subsidiaries.

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3.2. SUPPORTING BOGOTA’S Lighting Committee, and the District Commissions By signing the previously mentioned agreement, it project, EEB, through its Financial Engineering has DEVELOPMENT of Science, Technology and Innovation. was agreed that the FDN, in addition to making prog- worked on the design, development, agreement and In addition, the GEB Foundation, within its four ress regarding management, run the administrative, the signing of the Cooperation Agreement. This was ˕˕ WHY IS IT IMPORTANT? strategic pillars, focused on strengthening partner- legal and financial activities to develop comprehensive signed by EEB with FDN to joint efforts between them ships with district authorities, which meant that it project structure. The work of the FDN goes from the and the other participating entities of the PLMB proj- EEB, as a company in the decentralized sector of the increased range and impact on communities in the conceptualization of the most efficient project financ- ect to develop the Integral Interadministrative Struc- district administration with special links to Secretary District during 2014. ing and contracting model to accompanying the award- turing Convention, as instructed. of Habitat, is responsible for collaborating with the ing and signing of the contract for execution scheme. On December 26, 2014, the signing and conclu- objectives set out in urban planning regulations, in ˕˕ HOW DO WE ASSESS IT? As a key player in the process, the Ministry of Public sion of both agreements were made official. To date, development plans and other instruments that guide Finance signed a letter of intent addressed to the May- work has been carried out on interagency coordi- management zoning in provision of public service de- Monitoring the quality, relevance and impact of joint or and the IDU which pledged to support and finance nation, development schedule, the work plan, the livery and management of urban and rural areas. actions with the district is carried out with the same 50% of the process. formalization of team work and other activities re- Under the abovementioned regulations, the Com- auditing of projects, cost-benefit assessment, the In this context, in order to formalize their par- quired to give formal implementation of the conven- pany participates in the city project planned by the respective reports and field visits with communi- ticipation and leadership in the development of this tions start. District Administration. Likewise, it contributes to the ty interview. development of Bogotá incorporating goals of the De- velopment Plan into its Corporate Strategic Plan which First Bogota Metro Line Project (PLMB) the company can support. These are related to innovation projects, improving the quality of public ser- The Capital District and the State have joined forc- vices and mobility. es to work on the project for the construction of the first metro line in Bogotá (PLMB for its initials ˕˕ HOW DO WE DO IT? in Spanish). EEB has been entrusted by the District to take leadership, coordination and communication To carry out these purposes, EEB has assigned the between all entities of the District Government and Management of Public Services to manage relations other stakeholders throughout the process of struc- with the District and its institutions, in order to cen- turing the project. tralize the different activities to ensure timely and To develop this, the Financial Engineering Man- proper management of all issues that are handled agement, the Vice President of Equity Portfolio and together with the city. Corporate Planning have worked closely and active- Likewise, delegated participation in the different ly in the preparation, negotiation and signing of in- instances of the Coordination System of the Capital ter-administrative agreements signed between the District Administration has been delegated in order Institute of Urban Development (IDU, its initials to ensure the coordination for the implementation in Spanish) and the National Development Finance of the District’s intersectoral policies and strate- (FDN its initials in Spanish), which began the pro- gies. Thus, the Company participates in the Inter- cess of integral structuring of PLMB, whose final sectoral Public Service Commission, the Committee product is the opening of the tender and award of of Administrative Habitat Development, the Public the actual construction project.

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Initiatives undertaken by the Grupo Energía de Bogotá Foundation Concert commemorating the 25th anniversary of the rights of children

The Elimination of Barriers Program Target Take children from vulnerable populations to great works and high level theatrical presentations. Target Provide documents (identity cards) to the homeless and recyclers of the area of influence of the Foundation in Bogotá. Ally The Teatro Mayor Julio Mario Santo Domingo theater, Unicef, Cantando Contigo. Ally National Civil Registry and Department of Social Integration. Results This activity was carried out on August 17, 2014, and was attended by a total of Results There have been five days of registration and identification to benefit 854 recyclers, 1,000 children, young people and adults belonging to the Colombian Autism League the homeless and other members of vulnerable groups. Tiempo de Juego Foundation, and the District Institute for the Protection of Children and Youth (IDIPRON). During the gala, a video related to the rights of children was Strategic axis Projects with communities. screened.

Importance We work to be a business group that is close to the community, that contributes to Strategic axis Communication for Development. for the Group social development and that guarantees human rights.

Importance for The recovery of citizen status and the right to basic health services, education, the Importance Communication strategies and information to the community that can generate Beneficiaries Capital District’s social, housing, and credit life programs as well as the opportunity for the Group trust, closeness and presence in the children of Bogota were put into operation. to have a stable job, reduce problems with the police, participate in elections, and undertake proceedings before courts and notaries. Importance for Enjoyment of cultural and artistic spaces where, in addition to receiving training on Beneficiaries energy issues, children can appreciate high quality performances that take them away from their everyday surroundings and bad habits that may surround them.

One hundred thousand children to the Theater

Target Educate children from vulnerable populations in Bogotá in art, as well as take them to great works and theatrical presentations. The Obraztsov Puppet Central Theater Functions - Gulliver’s Travels

Ally The Teatro Mayor Julio Mario Santo Domingo and the Teatro Villa Mayor theaters. Target Take children from vulnerable populations to great works and high level theatrical Results 67,679 vulnerable children saw national and international shows free of charge in presentations. the Teatro Mayor Julio Mario Santo Domingo and the Teatro Villa Mayor theaters. In addition, 9,146 children took part in the training school that was offered within the Ally The Teatro Mayor Julio Mario Santo Domingo Theater. program to the general public. As part of the energy training and support of the Teatro la Vereda Theater, the Results The event held on September 21, 2014, was attended by 1,200 people, including children took part and went to the works also had the opportunity to see the video 700 children from the Institute for the Protection of Children and Youth (IDIPRON) on the care of energy made by the Foundation. and 400 children and adults from the Suba and Usaquén neighborhoods.

Strategic axis Communication for Development. Strategic axis Communication for Development. Importance Communication strategies and information to the community that can generate trust, for the Group closeness and presence in the children of Bogota were put into operation. Importance Communication strategies and information to the community that can generate for the Group trust, closeness and presence in the children of Bogota were put into operation. Importance for Enjoyment of cultural and artistic spaces where, in addition to receiving training on Beneficiaries energy issues, children can appreciate high quality performances that take them Importance Enjoyment of cultural and artistic spaces where, in addition to receiving training on away from their everyday surroundings and bad habits that may surround them. for Beneficiaries energy issues, children can appreciate high quality performances that take them away from their everyday surroundings and bad habits that may surround them.

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Social Christmas materials to account for cultural diversity in its About the Teatro Mayor Julio Mario Santo Domingo areas of influence and promote other forms of Target Ensure access of vulnerable population in the Bogotá catchment and adjacent communication for development. In that sense, The Theater is 23 thousand square meters, consist- area to large-scale works to be presented in public spaces, as part of the Social Christmas program, which is coordinated by the District Secretariat of Culture. more than 37 functions were performed in the ing of a mega library with up to 150,000 books. It is a villages of the area of influence, including the cultural space that specializes in concerts, shows and Mochuelo Alto and Quiba neighborhoods, locat- theatrical and important operatic productions. Ally The Teatro Mayor Julio Mario Santo Domingo Theater. ed in the south of Bogotá.

Results The GEB Foundation made a contribution of 200 million pesos that together ˦˦ 11,000 safe water heaters were delivered to XIV Iberoamerican Theater Festival 2014 with TGI, totaled 500 million pesos, for city dwellers could enjoy the Globe live low-income families (strata 1 and 2) through the spectacle performed by the Close Act Company – the Netherlands, which was purchase invoice. Thanks to this social structure, By means of an investment of USD 1,500 million, EEB presented during from December 11 to 15 at the Simon Bolivar Park for free. stratum 1 pays 10% while stratum 2 pays 20%, and the GEB participated in the XIV Iberoamerican

Strategic axis Communication for Development. while the remainder of the price is assumed by a Theater Festival of Bogotá with a strong presence of trust created between Gas Natural and the GEB the corporate image. At the time of going to press Importance Communication strategies to build trust with the community of Bogotá are put Foundation is moving forward with a new proj- time the following results can be highlighted: for the Group into operation. By participation in the activities promoted by the Mayor of Bogo- tá, relations with the various District bodies are strengthened. ect with Gas Natural for domestic gas applianc- es which improve household income through gas ˦˦ More than one million spectators consumption. The goal is to define this project ˦˦ 300 live functions Importance Enjoyment of world-class cultural events in city parks completely free of charge. for implementation in 2015. ˦˦ 2,000 artists and thousands of spectators for Beneficiaries ˦˦ 5 continents, 26 countries were represented with Brand positioning in Bogotá culture Brazil as the special guest scenarios ˦˦ 42 international live projects in living and 6 street performances During 2014, the Company was present, through its ˦˦ 40 Colombian companies participated brand positioning, in various events and scenarios ˦˦ 3 co-productions that promoted culture, knowledge and entertain- ˦˦ children’s plays ment in the city of Bogotá. This is one of the actions ˦˦ 24 national Street groups In addition to these initiatives: taken to generate greater value for stakeholders. ˦˦ 29 theaters, 9 parks and 2 community centers

˦˦ Discussions have taken place with entities such Teatro Mayor Julio Mario Santo Domingo as the National Service of Learning (SENA, its Theater initials in Spanish) the Colombian and the Minute For more information about the theater, of God University to create a scholarship fund for Since 2010, we have worked jointly with the Teatro please see: young people from vulnerable populations in Bo- Mayor Julio Mario Santo Domingo to not only ensure http://www.teatromayor.org/ gotá, and the restructuring the methodology of the sustainability of the Theater’s activities, but also Seed Scientists and Grant Program. contribute to the positioning of Company’s image For more information about the Iberoamer- ˦˦ A communication strategy was established to en- and social mission. Through this alliance, all tick- ican Theater Festival, please see: sue development that is sensitive to cultural di- ets are subsidized for an inclusive cultural space. http://festivaldeteatro.com.co/ versity. For this, the Company adjusted teaching In 2014, the Company provided COP 1,293 million.

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˦˦ 4 unconventional spaces: Palacio de los Deportes, ˦˦ 91% of visitors expressed a sense of pride for the Coliseum El Campin, National University Cabaret initiative in Bogotá. Tent About the Christmas Route About the XIV Iberoamerican Theater Festival in Bogotá In total, the route had 100 km of lit cables, 167,000 MINILED extensions, as well as 12 million light bulbs; Version XIV Iberoamerican Theater Festival in Bogotá about 7.5 kilometers of roads and more than 120,000 was held from April 4 to 20, 17 days of the best the- square meters of parks and plazas were illuminated. As ater in the world; it was attended by over more than a novelty, the Christmas lights reached two new places: 1,200 artists, 40 international projects and over 300 the 20 de Julio Plaza and the Lourdes Plaza. This celebra- theater performances performed by representatives tion was a partnership between the Secretariat of Culture, of 25 invited countries on five continents. The guest Recreation and Sports and its subordinated entities -the of honor was Brazil. General Secretariat of the Town Hall, the District CIT High Council, the District Institute of Tourism and companies: The Bogota Christmas Route 2014 the Aqueduct of Bogota, the Telecommunications Com- pany of Bogota, EEB, the Transportadora de Gas Inter- Between November 28, 2014 and January 7, 2015 the nacional, Codensa and Colpatria. Company was present, through the positioning of its image, in the Bogotà Christmas Route. This initiative Jorge Eliécer Gaitán Theater was part of the holiday agenda under the slogan “At Christmas many things happen, live them in Bogotá”, In 2014 ,the Group supported, positioning its image, led by the Mayor, which was intended to create cul- the staging of 13 cultural, artistic and musical func- tural and arts scenarios for the celebration of the hol- tions; around 1,745 people attended these functions idays. The relevant facts are as follows: and they represented a contribution by the Group of COP 500 million. ˦˦ The Group, through the EEB and TGI companies, has invested a total of USD 2 billion 017 million About the Jorge Eliecer Gaitán Theater (USD 1,500 million and COP 517 million respectively). This is a metropolitan, public theater; it is a symbolic ˦˦ The lighting was 100% LED, with 228 hours of ex- and traditional space known for its history and memo- posure and was lit during the foregoing period from ry. It has the largest stage in the city, which has been Más información sobre la Ruta de la Navidad: 6:00 pm until 12:00 am. renovated and modernized to offer the best infrastruc- http://www.rutadelanavidad.com/ ˦˦ It was attended by around 196,278 visitors at the ture to both artists and audiences. parks where the Group’s brand was present: el Vir- In its programming includes music, dance and the- Más información sobre el Teatro Jorge rey Park and the National Park. ater performed by domestic and groups of tradition, Eliécer Gaitan: ˦˦ 75% of park visitors where there was brand pres- as well as companies exploring new trends and lan- http://www.idartes.gov.co/index.php/escenarios/ ence were satisfied with the lighting. guages in the current landscape of the performing arts. teatro-jorge-eliecer-gaitan

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High Level Dialogs: “Implementing Rio + Más información sobre los diálogos en: Through participation in the Boards of Codensa and and the modernization project of LED lighting tech- 20 Decisions and the Promotion of Cities, http://www.rio20bogota.idu.gov.co/ Natural Gas, EEB tracks the state of the provision of nology, in which the zones to be favored with the Transport and Sustainable Tourism” electricity, street lighting and natural gas services pro- change to advanced LED technology with the instal- vided by these companies in Bogotá, in order to en- lation of 10,000 lights in accordance with the es- The Company has been involved with the different dis- sure quality services for the city’s best interests. tablished schedule. trict bodies involved in the Innovation Ring Project; Additionally, this Management elaborates a month- the aim is to establish physical space for undertaking ˦˦ Sustainable tourism (national and local policies, ly report on the behavior of the demand for both elec- Mobility productive, economic activities and urban processes hotel services, competitiveness, solid waste man- tricity and natural gas in Bogota and Cundinamarca in in a context of innovation and sustainability. It also is agement, cultural heritage, image of city, etc.). order to understand the behavior of these variables in In relation to the issue of human mobility, EEB has part of the Innovation City Initiative, led by the Cap- the context of the city and the region. implemented several activities to advance the intro- ital’s public services companies; it seeks to support The Innovation Ring duction of electric transport and, thus, make a contri- innovation projects for the city from the perspective Street lighting bution to a cleaner environment; these include: of providing public services. The Company has been involved with the different dis- It is important to highlight the development of in- trict bodies involved in the Innovation Ring Project; the The service of public lighting, while not provided di- ˦˦ A new GEB subsidiary was created which is innovative projects for the city, such as clean mobility, aim is to establish physical space for undertaking pro- rectly by EEB, as the Company forms part of the Cap- tended to develop the electric component for green buildings and environmentally friendly, urban ductive, economic activities and urban processes in a ital District and simultaneously is a shareholder of mass transit systems for passengers, cargo or waste management, development of intelligent vir- context of innovation and sustainability. It also is part of the service operator enables it to coordinate actions other uses. tual networks, among others, bring development and the Innovation City Initiative, led by the Capital’s pub- to seek a better provision of this service. This is why ˦˦ Evaluation of comprehensive feasibility of Bo- growth opportunities for citizens, improving the qual- lic services companies; it seeks to support innovation the company participates in the District Committee of gotá Elektrika PPP projects, Tram Trains in the ity of life and the city’s visibility as a place of progress projects for the city from the perspective of providing Public Lighting, which was created by Decree 500 of Western corridors (Estación de la Sabana - Fa- that the attention of new investors and businesses. public services. 2003 and aims to: catativá) and Southern corridors (Estación de la It is important to highlight the development of in- Sabana - Soacha). About the dialogs novative projects for the city, such as clean mobility, ˦˦ Approve the annual program of public lighting ˦˦ Active participation in High level Rio +20 dialogs, green buildings and environmentally friendly, urban works of the Special Administrative Unit of Pub- promoting electric mobility in the city of Bogotá. The dialogs took place in Bogotá’s Plaza de los Arte- waste management, development of intelligent vir- lic Services. ˦˦ Promotion of electric mass transport through sanos on August 10, 11 and 12, 2014. Looking gen- tual networks, among others, bring development and ˦˦ Ensure implementation and enforcement of the the development of performance studies of the erate models for public policy that will be a reference growth opportunities for citizens, improving the qual- Single Public Lighting Manual for Bogotá, DC. first electric hybrid bus manufactured by the point for cities throughout the world. Some of the ity of life and the city’s visibility as a place of progress ˦˦ Analyze and approve the proposed amendments to Higer-Siemens companies, which have been ap- activities included high-level dialogues, parallel ses- that the attention of new investors and businesses. the Single Public Lighting Manual that are submit- proved for operation in Integrated Public Trans- sions and special sessions, which developed the fol- ted by public or private bodies. Thus, it participates port System of Bogotá. lowing themes: Improving the quality of public services in discussions concerning the status and improve- ˦˦ Coordination and participation in the first pi- ment of the service, according to the projects and lot project for shared Assisted Electric Bikes, in ˦˦ Cities and efficient use of resources (energy, wa- On the issue of improving the quality of public services goals established by the Special Administrative Unit agreement with other agencies, including the ter, waste, habitat, sustainable housing, buildings for electricity and natural gas, EEB and its Manage- of Public Services. District Secretariat of Environment, Department friendly to the environment, etc.). ment of Public Services coordinate actions to achieve of Mobility and the District Institute for Recre- ˦˦ Transport and sustainable mobility (development better provision of these services in areas that are During 2014, EEB participated actively in updat- ation and Sport, among others. guided by sustainable transport, land use, trans- considered relevant with Codensa and Natural Gas, ing the Single Public Lighting Manual, in monitor- ˦˦ Technical support in the process of structuring portation systems, infrastructure, access, etc.). and in which the District has identified needs. ing the various public lighting infrastructure works the first line of the Bogotá Metro.

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˦˦ Maintaining an active participation in ˦˦ Actively participating in the planning CHALLENGES the development of Innovation Ring and execution of the Strategic Oper- Support for the Project for the city and the Innova- ation Innovation Ring Bogotá @ 21 development tion City agreement with other utili- project. of Bogotá ties of the Capital District, in which all ˦˦ Strengthening Social programs for participating public service companies the city of Bogotá, especially for vul- to make contributions to the advance- nerable children, young people and ment of the project. the homeless. ˦˦ Continuing being actively involved in ˦˦ Establishing a fund for Educa- the development of the electric en- tion, Training and Entrepreneur- ergy cluster for Bogotá and its sur- ship through strategic alliances with rounding region particularly with IDIPRON and academic institutions. regard to the development of ini- The initiative will allow youth from tiatives that have been identified in vulnerable populations in Bogotá to priority areas: human talent, techno- obtain professional qualifications. logical development (R+D+i), regula- ˦˦ Continuing with the Elimination of tions and business strengthening, all Barriers program, which will allow two aimed at increasing the competitive- thousand homeless people, recyclers ness of the industry located in Bogo- and their families to obtain their iden- ta and its hinterland. tity cards for free in alliance with the ˦˦ Further carrying out studies of inter- National Civil Registry. This will facili- ˦˦ The Management of Public Service has implement- Sabana. This will enable the increase of productivity, est to the city on issues related to tate access to basic services in health, ed a pilot program for the use of electric bikes by capacity for innovation and stimulate the creation of public services. education and social benefits at the EEB and TGI employees, which has produced ex- new businesses. national level. cellent results as more and more employs want This initiative has come from business people in to use the bicycle due to the advantages of speed the industrial sector, the public sector (the city’s Sec- that they offer, as well to take advantage of for retariat of Economic Development and the national physical activity. Productive Transformation Program, PTP), universities and the Technical Secretariat of the Chamber of Electrical Energy Cluster Commerce of Bogotá. Likewise, the EEB has been involved in previous EEB participated in shaping the Bogota-Sabana de Bo- meetings to define defined the scope of the cluster, gotá power cluster, which seeks to increase competi- its value proposition and strategic issues that need to tion in the electricity sector of Bogotá and the Bogota be implemented.

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Commitment 2: Commitment with world-class a service Provide standards The EEB guarantees the delivery of services in an efficient, reli efficient, an in services of delivery the guarantees EEB The added generate to safety, and quality with manner, timely able, with in accordance acting always prices, competitive at value world-class standards. 2 1 How do we do it? WHY IS IT IMPORTANT? ˕ ˕ About the Company’s electricity transmission business Provide a service with world- with a service 4. Provide class standards EEB has 1,504 km of 230 kV circuits and assets in 16EEB territory, Colombian the throughout located substations - Val Meta, Bolivar, Cundinamarca, of departments the in and Nariño. Putumayo Huila, Cauca, le del del 4.1 Calidad y confiabilidad servicio a providing with comes that responsibility the Given that ensure to EEB the for it is essential service, public quality, highest the with compliance in performed is this standards to ensure the satisfac reliability and safety expect tion of customers, end users and Company’s ed returns. ˕ ˕ 2014 Commitment 2 Report Management Sustainable EEB 106 Commitment 2: 1 2 Provide a service with world-class 3 EEB Sustainable Management Report 2014 standards

The value chain for the transmission business is de- The Company is governed by Laws 142 and 143 of 1994, The Transmission Control Centre (TCC) is respon- scribed below (Fig. 18). which allowed the formation of a new format for the na- sible for the coordination, supervision and control tional electricity sector. In this regard, the institutional of the operation of the transmission system, which Ministry of the framework under which it operates is as follows: has assets in 16 220 kV and 230 kV substations. Market Environment and Regulation Ministry of Mines operation and As a national transmitter, the Company interacts Sustainable and Control and Energy management Development with the Clearing and Accounts Manager of the Na- Institutional Framework tional Transmission System, which carries out the ANLA and Autonomous UPME CREG SSPD XM invoicing and liquidation of revenue from the pro- Regional Corporations Management vision of this service. Ministry of Mines and Energy - Presidency Similarly, contracts are managed for connections Environmental licensing Expansion Plan of the Selection of Management of EMP of the Company’s own assets with other companies Electronic Sector – investors and Planning with community UPME - CAPT in the National Transmission System, as well as re- Public calls interventory Permits and easements Regulation quests for connection of the Company’s assets to CREG the National Transmission System.

Consultancy EEB CNO - CAC - CAPT

Control and Supervision ˕˕ HOW DO WE ASSESS IT? Preparation and SSP Project study, presentation Operation of design, supplies, of offers for Transmission Maintenance Dismantling Operation and Market The Integrated Management System (IMS) con- licenses and transmission Projects Managment │ XM sists of twenty (21) processes and one hundred construction projects ten (110) procedures for electricity transmission

˦˦ Management ˦˦ Management of ˦˦ Management ˦˦ Management ˦˦ Management and management of the equity portfolio focused of Planning and Engineering and of Engineering of Maintenance of Maintenance New Business Construction and Construction In order to ensure the provision of an adequate ser- on continuous improvement and the search of in- ˦˦ Management ˦˦ Management ˦˦ Management of ˦˦ Administrative ˦˦ Management of Operations of Operations vice through transmission lines and substations, the novation. The IMS is certified by: i) international Engineering and and Financial of Operations ˦˦ HSE Management ˦˦ HSE Management Construction Management following activities were undertaken: standards ISO 9001: 2008, ii) environmental stan- ˦˦ Management ˦˦ Contractors ˦˦ GEB Foundation ˦˦ General Sectretary ˦˦ Management of Maintenance dards ISO 14001: 2004, iii) occupational safety and of Engineering ˦˦ Contractors ˦˦ VF ˦˦ HSE Management ˦˦ Remote operation, in real time, of all transmission health OHSAS standards 18001: 2007, iv) the man- ˦˦ Project ˦˦ VPAPC ˦˦ GEB Foundation Management assets from the EEB Control Center as well as lo- agement of energy ISO 50001: 2011 v) in National ˦˦ Contractors ˦˦ HSE Management cal backup operations. Quality Standard NTCGP 1000: 2008. ˦˦ Supply Management ˦˦ Planning, scheduling and execution of the infra- Similarly, two cycles of internal audits of IMS ˦˦ General Secretary structure’s electromechanical maintenance, civil took place, an external audit by Bureau Veritas Cer- ˦˦ Contractors and easements transmission infrastructure. tification (whose result was zero non-conformities), ˦˦ Operation and maintenance of the communications and audits of key contractors.

Provide a quality and reliable power transmission service to our customers system. Additionally, the performance of the electrici- (network operators, generators, transmitters) ensuring asset availability. ˦˦ Restoration of infrastructure in case of emergency. ty transmission activity is measured by indicators, ˦˦ Continuous improvement of the management, presented in Table 6. operation and maintenance processes of trans- Figura 18. Value chain for EEB’s electricity transmission business. mission infrastructure.

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Indicator Unit To Dec. 2012 To Dec. 2013 To Dec. 2014 Target

Infrastructure availability % available 99,93 % 99,94 % 99,94 % > 99,9% time

Income compensation for % maintenance 100 % 100 % 100 % 90% maintenance implementation

Income compensation for % of revenue 0,0294% 0,0860% 0,0257% < 0,5% lack of availability

EBITDA Margin % of revenue 69,49% 67,51% 70,17% > 61,8%

Operating margin % of revenue 54,15% 51,93% 56,08% > 45,6%

Table 6. Performance of the EEB’s Electricity Transmission activit.

˕˕ what did we do in 2014? ˦˦ of the external audit undertaken to obtain the Bureau Veritas Certification: Likewise, certifica- ˦˦ Implementation of the Static Var Compensator in tion of the EEB Integrated Management System the Tunal and Thessaly substations, in expanding under ISO 50001:2011 for energy management the Altamira substation, the Thessaly-Altamira was maintained according to the Bureau Veritas transmission line and the reconfiguration of the external audit. Bethany-Jamondino transmission line. ˦˦ Strengthening EEB’s Integrated Management ˦˦ Availability and quality rates were maintained System as the GEB parent company to standard- complying with the business value proposition, ize management systems at the corporate level, the expectations of the communities in the area which stood out as the area of greatest integra- of influence as well as social environmental re- tion by McKinsey & Company Inc. in the Inte- quirements. gration Contract. ˦˦ Recertification of the Integrated Management ˦˦ We managed to have zero serious and fatal ac- System under the National Quality Standard cidents and occupational diseases caused by our NTCGP 1000:2008, international quality stan- business operation and administration, through dards ISO 9001:2008, Environmental ISO the implementation of management system plan 14001:2004, Workplace Health and Safety in health and safety. OHSAS standards 18001:2007, the Bureau Ver- ˦˦ Definition of a strategy to protect information itas Certification due to an external audit. 2011 about critical infrastructure for the transmission energy management, according to the results of electricity.

110 111 EEB Informe de Gestión Sostenible 2014

This section will be underground Transmission expansion projects

In order to increase market share in transmission ac- Río Cordoba Bolívar tivity in the National Transmission System and meet Cartagena the expansion needs of the system, the Company For more information on EEB’s business of actively participates in the UPME Public Calls to se- electricity transition, please see: lect the investors who will undertake the design, con- http://www.eeb.com.co/transmision-de- Northern Zone struction, operation and maintenance of the projects electricidad identified in Reference Expansion Plans for Electricity Generation-Transmission, which are approved by the Ministry of Mines and Energy. The geographical location of transmission infrastructure in Colombia is presented below. Sogamoso This project will be Catíos undertaken with double Medellín circuit transmission towers Bogotá Central Zone EEB 230 kV transmission line Existing network of 230 kV, property of EEB La Virginia Norte Chivor EEB 500 kV transmission line Torca Noroeste Chivor Bacatá Basillas La Mesa Circo Armenia SVC Tunal Guavio San Marcos Nueva Guaca San Esperanza Mateo Paraíso Alférez

La Reforma Tesalia San Bernadino

Altamira t rojec o P Southern Zone nd Jamondino na er F n a S e th Bogotá D.C. f o

n o i Madrid t a c o L

Villavicencio Acacias ECUADOR

San Castilla la Fernando Nueva Project

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Thus, the Company developed and put into service in 2014, three projects for the National Transmission System, which are described below: UPME 05-2009 Description: The 230 kV Thessaly Substation Project and the Thessaly-Altamira 230 S/E Tesalia kV,Transmission Lines, the Reconfiguration of the Bethany-Jamondino 230 KV Transmission UPME 01-2010 Description: The Alférez 230 kV Subestación Project withy 1.4 km of associated trans- Project and Line and the Thessaly-Alférez 230 kV Transmission Line, the expansion of the Altamira S/E Alférez mission lines located to the south of Santiago de Cali city, in the Valle del Lili area, El associated 230 kV Substation. The municipalities that are part of the area of influence of the project 230 kV Project Hormiguero hamlet, Valle del Cauca region. transmission are: Thessaly, Paicol, Gigante, El Agrado, El Pital, Tarqui, Altamira, Iquira, Teruel, Palermo Benefits:With this project the power supply in Valle del Cauca is guaranteed to fulfill the lines and Santa María, in Huila; Planadas and Rio Blanco, in Tolima; and Florida, Candelaria and region’s internal demand while strengthening the connection with the Regional Transmission Santiago de Cali, Valle del Cauca. System. The initiative allows adding new users, especially industrial ones, and promotes economic growth in the region. The project received an environmental license, issued by Benefits: the National Environmental Licensing Authority (ANLA), by Resolution 0563 of June 7, 2013. Progress: On February 24, the project entered into commercial operation and it was recei- • AIt will ensure the transmission of energy for future generation at the El Quimbo Hy- ved a visit from the Ministry of Mines and Energy on February 25, which was the start of the droelectric (Regional Transmission System) with the required levels of quality, safe- project. ty and reliability. • It will improve the reliability of power supply in the country and the region. • It will increase the energy security and stability of the Colombian electricity system, Static Var Description: In the Transmission Expansion Plan 2013-2026, UPME identified in the need to all the while contributing significantly to the energy independence of Colombia. Compensator install a flexible alternating current transmission system or FACTS device, a Static VAR Com- • It will allow the reduction of operating costs of the electricity service. Tunal 230 kV pensator (SVC for its acronym in English) at 230 kV with 240 capacitive MVARs, 60 inducti- • It will create jobs for local workers in its areas of influence during the construction Project ve MVARs; with an entry date into operation of no later than December 2014, it is intended and operation phases, and increase demand for goods and services. to mitigate risks of not being able to serve electricity demand in Bogotá in peak demand • During its operation, it will cooperate with sustainable development through the GEB periods of the year due to delays in Nueva Esperanza Project under way. The Company was Foundation by coordinating, initiating, developing and leading programs and projects assigned the Project by means of an extension mechanism, per Resolution 063 of 2013 of that will contribute to progress and improvement in social, economic, cultural and ed- the CREG. ucational conditions along the Foundation’s three programmatic lines: training programs, productive projects and environmental initiatives. It is mainly composed of the following elements: • Transformer 230 kV connection Progress: On December 16, 2014, the Company began operation of the Thessaly substa- • Thyristor-controlled reactor tion, the extension of the Altamira substation, the Thessaly-Altamira transmission line and • Thyristor Power Capacitors the reconfiguration of the Bethany-Jamondino Line. • Harmonic Filter Regarding the 230 kV Transmission Line Thessaly-lieutenant, it is awaiting the approval • Control and protection system of the environmental license by the National Environmental Licensing Authority (ANLA) to Award Date: June 21, 2013 proceed with the construction of the transmission line. Operation Date: December 20, Likewise, the Ministry of Mines and Energy extended the term of putting the Tesalia-Al- Benefits: risk reduction in the attention to peak demand in 2014 and the following years in férez stretch of the Project into operation until November 28, 2015. situations of contingency or criticality in the operation of the interconnected system. Progress: The Tunal SVC entered commercial operation on November 30, 2014, three weeks before the deadline. Table 7. Projects that will be put into operation in 2014

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Moreover, the Company has made in the implementation of the following projects awarded to expand the Na- tional Transmission System in recent years, through the UPME Public Call mechanisms:

UPME 02-2009 Description: The 230 kV Armenia Substation Project and Associated transmission lines. Armenia Project Presently under way in the municipalities of Circassia and Finlandia in Quindio and Dos- and associated quebradas, Santa Rosa de Cabal and Pereira in the Department of Risaralda. transmission Benefits: This project seeks to ensure the supply of energy to the Coffee Region in lines coming years. Since the completion of the project, EEB has pledged to reduce environmental impacts in areas that correspond to the La Marcada Natural Regional Park, the Soil Conservation District of Barbas-Bremen, and the Coffee Cultural Landscape. For this reason, during construction, we have opted to use a helicopter to lay electric wires, which prevents opening gaps in existing forest cover in the areas where the project crosses. It will be one of the first transmission lines in Colombia to use this method in its construction, all in the name of the protection of ecosystems and biodiversity of the environment. In addition, the project was designed so that it will not cause affect wildlife species whose inhabit the forests in the Soil Conservation District of Barbas-Bremen, such as howler monkeys and the Cauca guan. With this in mind, the following measures were implemented: • Preventing the interruption of the howler monkeys’ habitat. • The arrangement of tower sites in disturbed areas whose current use is for live- stock pastures. • Conductor heights are sufficient so as to not affect existing woodlands, and associated fauna • An environmental public hearing was held on August 15, 2013, in the municipality of Finlandia (Quindio dept.). This initiative, which responded to guidelines for citizen participation, was moderated by the ANLA and it was attended by representatives of regional organizations such as the Quindo departmental government, the Regional Autonomous Corporations (CARDERs) and CRQ, mayors, human rights defenders, communities and NGOs Environmentalists in the region, among others. Those present expressed their concerns regarding the project, while the Company presented the benefits of the initiative, the environmental impacts that it would represent and proposed management measures of the same.

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UPME 02-2009 Progress: The Armenia Substation project and associated transmission lines recei- UPME 03-2010 S/ Due to the notification of the resolution concerning the Analysis of Environmental Alter- Armenia Project ved the respective environmental license with the ANLA. Likewise, the Ministry of Es Chivor II, Norte, natives to all participants in the process and wait for possible internal appeals against and associated Mines and Energy extended the deadline its entry into operation, due to problems Bacatá Project the ANLA, the Analysis of Environmental Alternatives had not been approved by the end transmission lines during the project implementation phase, the opposition of the Quindio Governor and associated of the year, therefore it was not possible to continue with licensing activities until the and the various legal actions taken against the project by different stakeholders and transmission lines pronouncement of ANLA. regional institutions during the year, making the new official date of entry into ope- By December 31, 2014, the project presents a real execution of 38.2% in comparison ration of the Project April 9, 2015. with the estimated figure of 60.7%. The project had make progress of 72.08% as of December 31, 2014, in comparison with 76.02%, which was scheduled for the same date, representing 95% compliance. UPME 05-2012 Description: The Cartagena-Bolivar UPME-05-2012 Project development is part of the Cartagena- Reference Expansion Plans for Electricity Generation-Transmission 2012-2025, adopted Bolívarn Project by the Ministry of Mines and Energy, through Resolution 18 0423 of March 21, 2012. The UPME-05-2012 call is for the design, procurement of supplies, construction, ope- UPME 03-2010 Description: The UPME-03-2010 Norte Project development is part of the Reference Ex- ration and maintenance of the second 220 kV circuit between the Cartagena and Bolivar S/Es Chivor II, pansion Plans for Electricity Generation-Transmission 2010-2024, adopted by the Ministry substations and expansion of the same. The Cartagena-Bolivar line has a length of Norte, Bacatá of Mines and Energy, through Resolution 182215 of November 22, 2010. about 22 km and includes an underground section of approx. 4 km. and associated The UPME-03-2010 public call is for the design, acquisition of supplies, construction, transmission operation and maintenance of Chivor II and Norte 230 kV Substations and the expansion Benefits: lines of the 230 kV Bacatá Substation and approximately 160 km of associated 230 kV double • It will improve the reliability of energy supply in the department of Bolivar and circuit transmission lines. the north of the country. Award Date: April 16, 2013 • It will permit the reduction the operating costs of electricity service in the country. Operation Date: October 31, 2015 • It will increase energy security and stability of the Colombian electricity system. • It will support the development of the area of influence of the project. Benefits: • In the long term (2018 onwards), the demand for energy in Bolivar area will ex- • It will ensure the transmission of energy for future generation at the El Quimbo Hy- ceed its import limit, so it is proposed to increase the area’s import limit with the droelectric (Regional Transmission System) with the required levels of quality, safe- second 220 kV Cartagena-Bolivar circuit. ty and reliability. • In the medium term, the Cartagena Refinery will generate growth in industri- • It will improve the reliability of power supply in the country and the region. al demand. • It will increase the energy security and stability of the Colombian electricity sys- • Considering new generation projects in the area, the new circuit would permit the tem, all the while contributing significantly to the energy independence of Colombia. proper evacuation of all power generated during dry periods. • It will allow the reduction of operating costs of the electricity service. • It will support development in the project’s area of influence. Progress: The project is in the study and design phase. The contract for carrying out environmental studies was signed and preparation of the Analysis of Environmental Progress: By December 31, 2014, the project had a backlog of 231 working days due Alternatives was initiated. Procurement processes are under way for the: to delays in the issuing of the environmental license that are not attributable to EEB. The • Design of air section of the line. Analysis of Environmental Alternatives was filed at the ANLA on October 31, 2013, and • Design of civil works of the underground section of the line. was approved by the same and the Company was notified by resolution on November 25, • Design and supply of electric cable underground section of the line. 2014. • Design of the Cartagena and Bolivar Substation words.

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UPME 05-2012 By December 31, 2014, the project presents a real implementation of 5.87% in com- Proyecto UPME 06- Benefits: The project will improve system conditions, as there is depletion of the Cartagena-Bolívar parison with the estimated figure of 7.00%. 2014 Río Córdoba Foundación-Rio Cordoba 110 kV line capacity, due to growing demand connection at Project Award Date: May 19, 2014 the Santa Marta-Gaira-Rio Cordoba- Fundación 110 kV substations link which can lead Operation Date: March 7, 2017 circuit overloads and the failure to supply demand. The connection is an alternative to the impossibility of OR Electricaribe to reinforc UPME 05-2012 Description: The project consists of the design, procurement of supplies, construc- the network at the Regional Transmission System level due to the costs of easements S/Es Sogamoso tion, testing, operation and maintenance of the works defined in the Reference Expan- in the area. – Norte – Nueva sion Plans for Electricity Generation-Transmission 2013-2027, adopted by Resolution Progress: The project is in the study and design phase. A request was sent to the Esperanza Project 90772 of the Ministry of Mines and Energy of September 17, 2013, as follows: ANLA to establish if this project requires the preparation of an Analysis of Environmen- and associated Construction of the new 500 kV Norte substation composed of two (2) 500 kV line tal Alternatives, as the length of line sections is only 400 meters. ANLA has not yet transmission bays; two (2) 500/230 kV transformer banks of 450 MVA each; two (2) 500 kV trans- answered. lines formation bays. Procurement processes under way: Construction of a 500 kV single circuit Sogamoso - Norte transmission line, • Preparation of Environmental Impact Assessment (EIA) and the licensing Construction of a 500 kV single circuit transmission line Norte – Nueva Esperanza, process. Installation of one (1) line bay at the Sogamoso 500 kV substation. • Design of the Rio Cordoba substation. Installation of one (1) line bay in the Nueva Esperanza 500 kV substation. Installation of two (2) transformation bays in the Norte 230 kV substation. By December 31, 2014, the project presents a real implementation of 2% of an esti- Installation of inductive reactors of 120 MVAr each, at the ends of the Sogamoso - mated 2.1%. Norte 500 kV line. Installation of inductive reactors of 80 MVAr each, at the 15 ends of the Northern – Award Date: October 16, 2014 Nueva Esperanza 500 kV line. Operation Date: November 30, 2016

Award Date: May 7, 2014 Operation Date: September 30, 2017 Table 8. National Transmission System expansion projects awarded in recent years

Progress: The project is in the phase of environmental studies and the presentation By 2015, EEB will continue its business value proposi- The main channel of communication concerning of the Analysis of Environmental Alternatives is scheduled by the ANLA in February tion, managing its expansion projects presently under transmission between the Company and its custom- 2015. By December 31, 2014, the project presents progress of 6.06 % in comparison construction and participating in new UPME calls for ers is the Annual Satisfaction Survey. This initiative with the figure of 6.12% that was scheduled. new expansion projects for the National Transmission allows us to understand customers’ perception of the System, especially those related to Caribbean Coast services and care we provide, among other things. UPME 06-2014 Description: eThe Río Córdoba UPME-06-2014 Project development is part of the Re- 500 kV Reinforcement Project, the South-west 500 The latest polls show a significant improvement in Río Córdoba ference Expansion Plans for Electricity Generation-Transmission 2013-2027, adopted by kV Reinforcement; and the Ituango - Medellín 500 kV the perception of our services, demonstrating that we Project the Ministry of Mines and Energy with Resolution 90772 of September 17, 2013. substations and associated transmission lines. continue on the path of consolidating the our business The UPME-06-2014 call covers the design, procurement of supplies, construction, ope- and providing our best service. ration and maintenance of the 220 kV Rio Cordoba Substation and two sections of double Customer service As for requests and complaints, it is important to circuit 220 kV line of approx. 400 meters to connect the substation to the existing Santa note that the electricity transmission business by its Marta-Foundación double-circuit line. The Company understands that its clients are genera- very nature (link between generation and distribution) tors, transporters (market peers) and energy distrib- has no direct customers in the sense of end users. utors, as with the national grid. However, expectations and concerns of actors and-

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stakeholders are recognized and managed through the discussion of the regulatory proposal to be surveys and dialogues. issued by the CREG in 2015. CHALLENGES ˦˦ Identify the risks and opportunities ˦˦ Lead the implementation of tools to ˦˦ Regulatory Management Participation in in the regulatory framework for in- measure regulatory impact in some Quality and reliability Regulatory Management studies required for filing a motion for recon- vestment in countries that are de- of the Group’s subsidiaries. of service sideration against the Osinergmin Resolution fined as strategic. In 2014 regulatory management was focused on the No. 086-2014 -OS/CD. This motion was filed in following activities: the case of Cálidda, a subsidiary of the Group in Peru; according to the setting of the Single Dis- ˦˦ Analysis and comments regarding the pro- tribution Tariff for the period 2014-2017. Neither posal made by the CREG to calculate the Cálidda nor the Board of Directors agreed with it. discount rate (WACC). It will apply to the ac- A response in the form of an increase in the Fixed tivities of transport and distribution of fuel gas Price Distribution was finally allocated. and LPG transport via pipelines, transmission ˦˦ Analysis of regulatory frameworks in the and the distribution of electricity in the National target countries of the Group. The analysis of Transmission System. regulatory frameworks in countries where invest- ˦˦ Participation in the study for the analysis ment opportunities identified was undertaken. of methodologies for payment of electrici- They were incorporated in financial assessments ty transmission and distribution activities. and considered the specificities of the regulated ˦˦ The development of the payment systems and 4.2 INNOVATION IN BUSINESS The study is being carried out with the support activity for which investment may be considered. procedures to encourage and promote the mech- MANAGEMENT AND THE ENERGY of an international consultant with the hope that ˦˦ Analysis of regulatory restrictions for par- anisms of response to demand and smart grids SECTOR the CREG will reconsider the modification of the ticipation in new business. Relevant analyzes will continue. investments payment scheme and ensure the were performed to identify possible restrictions ˕˕ WHY IS IT IMPORTANT? stability in earnings of companies in the sector. of horizontal and / or vertical integration that Perú ˦˦ National Grid Expansion Plan. The Ministry of may eventually prevent the Company from par- The global economy requires organizations to stay Mines and Energy repealed the decree that had ticipating in future business. ˦˦ The process of internal procurement of natural ahead of international trends, and be alert to oppor- been previously issued, which directly assigned gas in residential buildings will be defined accord- tunities and challenges of an increasingly competitive some National Grid projects to ISA SA. Thus, Colombia ing to the pricing promotion mechanisms. world. It is through knowledge management, inno- projects are allocated by public calls, which has ˦˦ The procedure for implementing the Energy So- vation and the development of new skills, that com- enabled the Company to successfully participate ˦˦ During 2015 the discussions on alternatives will cial Inclusion Fund in the interests of the growth petitiveness and sustainability can be guaranteed in in these calls. begin to provide reliability to the natural gas ser- of the natural gas pipeline network will be issued. markets where the Company operates, providing dif- ˦˦ Analysis of the methodological basis for the vice delivery chain. ˦˦ Regulation of Marketing of Compressed Natural ferentiated value to its stakeholders. payment of natural gas transportation ac- ˦˦ A new remuneration scheme for the sale of elec- Gas (CNG) and Liquefied Natural Gas (LNG) will Given that energy is the driving force behind the tivities. During 2013, according to CREG rules, tricity will be defined. be amended. development and transmission business, it is a fun- the Company’s Regulatory Management hired a ˦˦ The methodology and the discount rate (WACC) ˦˦ Registration of Gas Installers will be regulated. damental part of the GEB Foundation’s programs, as specialist to carry out a study analyzing differ- will be defined for transmission and distribution of ˦˦ Technical Competence Requirements and Criteria can be seen in the “Energy for life” slogan Energy for ent alternatives for gas transportation payment. electricity activities as well as for transport activi- for the Evaluation of candidates to be certified as Development and the efforts of the Group to link its This study will serve as a basis for addressing ties and distribution of natural gas. natural gas installers will be issued business strategy and the Group’s subsidiaries’’ prac-

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tices of Corporate Sustainability with the energy needs Finally, the third axis, operated by the Management present in communities, hoping to find new ways to of Public Services, under the leadership of senior man- improve their quality of life by optimizing their use of agement through the Innovation Committee focuses this resource. on the functional structure of the system and ensures strategic coherence of its initiatives, supporting the ˕˕ HOW DO WE DO IT? project implementation, and supporting the planning and implementation of the innovation program. The Since 2012, EEB, in fulfillment of its mission to gen- operational management of innovation projects and erate economic, social and environmental value for priority issues, with the support of consultants to fa- Bogotá DC and its other interest groups, has been pro- cilitate the use of tools for creativity, the identification moting activities 2012, promoting actions that promote of opportunities responses to challenges. and facilitate and systematic technical innovation in management, products and the provision of services. WHAT DID WE DO IN 2014? These are aimed at fulfilling its strategic objectives and positioning of EEB as a global benchmark for innova- During this year, progress was made in strengthening tive practices. the pillars of culture of innovation, strengthening al- Consequently, a management system is structured liances, and identifying strengths, opportunities and around three innovation development axes: strategic lines for implementation. During 2014, the following activities were implemented: ˦˦ The management of a culture of innovation. ˦˦ The first version of the Créalo Awards was held for intelligent networks and the definition of pi- ˦˦ The management of networks and alliances. ˦˦ By decision of the Presidency, the formation of the projects associated with treasury quota manage- lot projects. ˦˦ Process management and results. EEB Innovation Committee, a body led by senior ment and the monitoring of biodiversity through management to manage and monitor the innova- the use of electronic devices. • Connect Bogotá. This alliance promotes the The first axis, the management culture of innovation management system. ˦˦ EEB continues to strengthen the network of stra- strengthening of innovation capacities and tion is led through the Créalo (Believe) Program and ˦˦ The implementation of the first year with a team of tegic allies for innovation and knowledge manage- opportunities for alliances between universi- the Award for Innovation and Creativity, linking it to leaders to define a path of innovation in addition to ment, and is part of the following networks whose ties and companies. EEB has been a found- leadership programs, knowledge management and carrying out surveys and interviews for a diagnosis contributions totaled COP 54 million in 2014: ing member since 2011 and has participated capacity building and skills. of innovation to identify the organization’s oppor- in technological missions and approaches with The second axis is intended to increase cooper- tunities and challenges for the successful imple- • Intelligent Colombia. This is an agreement universities, through the wheels of innovation ation for the creation, collaboration, the transfer of mentation of the innovation management system. with the purpose of ensuring the EEB’s par- and he Connectec. knowledge, enhance skills, capital resources, tech- ˦˦ The Créalo Program provides the framework for ticipation as a member of the dirc committee nological and human resources to ensure better re- strengthening the culture of innovation, thirty-four of this initiative, which aims to analyze and ˦˦ Bases and methodology were developed for the sults compared to the objectives. Therefore, in this EEB and TGI employees were trained in the use of generate recommendations on key aspects of Group’s First Technical Meeting: Learning and area, a strategy of contact, recognition of and devel- tools to foster creativity and innovation. Four ses- Intelligent Networks, its use for optimal use knowledge for innovation in order to provide a fo- oping relationships with potential linkage networks sions were held to teach how creativity has a meth- of energy, and its application for specific proj- rum for the exchange of best practices between and allies to meet the needs of the Company or od and how to implement it for both organizational ects in Colombia. EEB is involved in the op- the technical teams that are active in the Group’s present opportunities. and personal challenges. erational node to exchange its experience in subsidiaries. The event was designed to make

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progress in the construct of an innovation man- ˦˦ Participating in research and development initia- tion, Energy and the City of the Future” for documents agement system for the Group. The event will tives that strengthen the value chain for the effi- that in addition to having solid theoretical content, will take place in 2015. cient provision of public services in the city. contribute toward the transformation and construction ˦˦ EEB participated in Connectec Energía, a strate- ˦˦ Providing spaces for innovation and entrepreneur- of an “intelligent city”. gy led by Connect Bogotá REgion with the aim of ship in areas that strengthen and create value The prize closed its call on September 30, and re- promoting university-industry alliances to work to- for stakeholders involved in the provision of pub- ceived a total of twenty participating documents relat- gether on issues and challenges pertaining to the lic services. ed to the energy sector and gas. Of these, seventeen energy sector. Due to this strategy, five research ˦˦ Promoting and facilitating public-private and aca- pertained to the undergraduate category, eight to proposals were received and are being studied by demic alliances for innovation and entrepreneur- master’s degrees and two to doctorates. On October the Company’s Transmission area; they are the re- ship in public services. 28, the GEB foundation held the ceremony at the José sults of two particular challenges posed: Param- ˦˦ Managing resources for promoting innovation and Celestino Mutis Botanical Gardens, awarding a total of eterization of Transmission Lines for a Dynamic entrepreneurship initiatives in the city. eight graduation projects. System and Optimizing Performance of Static Var The award winners were: received Compensator. PIn order to develop these areas, the Company active- ˦˦ With an investment amounting to USD 130 million, ly participates in the Bogota-Sabana de Bogotá power Undergraduate Degree Category progress was made in developing actions for inno- cluster, the District Commission of Science and Tech- vation and process optimization. nology Bogotá and the Alliance for Innovation of the ˦˦ First place: Juan Felipe Chaves, Los Andes Uni- City, which is promoted with ETB, EAB-ESP and TGI. versity. Fractal method in the model of leader Innovation City: A commitment to an Regarding the latter, during 2014, the Management propagation for the evaluation of lightning in trans- Innovative Bogotá of Public Services prepared the proposal to launch the mission line design. Innovation Program Intelligent Bogota, at the request ˦˦ Second Place: Camilo José Cubides and Omar Andres ˦˦ Third place: Luis Fernando Mulcue, International In order to promote the proactive, committed and of the Board. Camacho, District University of Bogotá. Evaluation of University of Andalusia. Development tools for the coordinated participation of EEB and the GEB in the This proposal, led by EEB, seeks to promote har- the use of Synchrophasors for calculating radial dis- design and simulation of photovoltaic systems in provision of public services for electricity and natural mony between the companies that provide public ser- tance to fault in electrical transmission lines. Colombia. gas in the city of Bogotá, the Vice-President of Public vices concerning the identification and development ˦˦ Third Place: Jaime Pinzón Casallas, District Univer- Services and Regulation, through the Management of of high-impact projects for the city that represent in- sity of Bogotá. Energy Characterization of the Luis Ph.D. Category Public Services, participate in promoting high-impact novation, sustainability and entrepreneurship. Thus, a Alejandro Suárez Copete Building in the Francisco projects for the city based on the criteria of innova- concept paper and memorandum of intent, were draft- José de Caldas District University. ˦˦ First place: Eduardo Gómez Luna, University of Val- tion and shared value. ed which will facilitate the implementation of this ini- le. Obtaining Response in Frequency from In-Ser- This management is intended to consolidate EEB tiative during 2015. Master’s Degree Category vice Transformers being using Transient Signal and the GEB as relevant actors in the transformation Analysis. of Bogotá, as well as to promote innovation and en- Eight Version of the Fabio Chaparro ˦˦ First place: Carlos Arrieta, University of Antioquia. ˦˦ Second Place: David Florez, Pontifical Xavierian trepreneurship in the city through projects, alliances, Award Experimental Evaluation of a Stabilized Combustion University. Power Supplies for the Study and Effi- processes and areas for development that are part of Burner on the Surface of a Porous Medium Using cient use of DBD Excimer UV Lamps. the Science and Technology Policy, as well as in pro- The new version of the Grupo Energía de Bogotá, Fa- Natural Gas and Natural Gas Mix-Syngas. grams and strategic operations in the city led by the bio Chaparro Prize is intended to encourage research ˦˦ Second place: Dany Mauricio López, University of The Foundation identified thre (3) research progjects District Administration. and innovation in the energy sector. Thus, for the first Valle. Optimal Management of Electric Power in Mi- as posible seed projects which will led to social de- Thus, Bogotá Power Company has betted on: time the award had a special category called “Innova- crogrids, Based on Computational Intelligence. velopment of local communities:

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˦˦ Power Supplies for the Study and Efficient Use of The GEB Foundation actively participated in the de- ects that are committed to finding solutions for issues Empresa de Movilidad de Bogotá SAS ESP (EMB) or DBD Excimer UV Lamps. sign and development of this event and provided re- of interest to the country. Investments totaling COP The Bogotá Mobility Company. ˦˦ Development tools for the design and simulation of sources for logistics. 530 million have been made in the last three years. Through the projects in which it participates, the photovoltaic systems in Colombia. Investment: COP 35,000,000 in 2014. EMB seeks to: ˦˦ Experimental Evaluation of a Stabilized Combus- Electrical Mobility tion Burner on the Surface of a Porous Medium Dialogs on Energy and Development ˦˦ Promote increased electricity demand in the trans- Using Natural Gas and Natural Gas Mix-Syngas. EEB, through its Vice President of Special Projects, port sector in general, thusly reducing mobility In 2014, two (2) dialogs on energy and development manages and implements projects related to elec- costs, improving the environment and optimizing Additionally, TGI expressed interest in developing were held with academic support: tric mobility that are currently under evaluation by the use and remuneration of the existing electri- the project Experimental Evaluation of a Stabilized the District and Regional Directors. cal infrastructure. Combustion Burner on the Surface of a Porous Medi- ˦˦ Energy and Development: Los Andes University To channel the participation of EEB in electrical mo- ˦˦ Contribute to the sustainable development of the um Using Natural Gas and Natural Gas Mix-Syngas, participated in this event which addressed the issue bility, in February 2014, the Company constituted the city by exploring new clean technologies and im- which was the winner in the Master’s degree cate- of innovation, energy and the city of the future. Ex- gory in order to install around 2,500 eco-efficient pert speakers in innovation and energy efficiency at- stoves for families who are part of the area of influ- tended such as Oriol Balaguer, Spain; Fabio Fantuzzi ence of the Galán-Yondó pipeline as social strategy and Claudio Bianchini, Italy; the District Secretary for the legalization of illicit connections that have of Planning Bogotá, Gerardo Ardila; Dean of Engi- occurred with this pipeline. neering at Los Andes University, Eduardo Behrentz; ˦˦ Develop the strategy the city; promote ˦˦ Actively participate in Investment: COP 95,443,675 as well as EEB’s own Juan Martin Zuluaga and Javi- CHALLENGES and actions needed to the development of the planning and exe- er De Quinto, respectively, the Vice-President of New Innovation make the EEB a major high-impact projects cution of the Strategic Eco-hackathon Business and the Vice-President of Public Services. in Business player in the transfor- in the short and medi- Operation Innovation Management and Around 170 people attended the event. This space mation of Bogotá, that um term; and contin- Ring Bogotá @ 21 the Energy Sector To develop the alliance with the José Celestino Mu- opened the doors for the Group’s involvement in the truly encourage inno- ue the management, project. tis Botanical Garden, the First Eco-hackathon was current discussion of the Bogotá Innovation Ring and vation and entrepre- promotion and sup- ˦˦ Implement the Ed- held; its aim was to promote proposals for tech- make contact with the main actors of that discussion. neurship in the city, port of the consolida- ucation, Innovation, nological applications that facilitate access to the through the promotion of networks for Science and Technol- knowledge of Bogotá’s biodiversity and contribute Percentage contributed by the Foundation: 40% tion of projects, alli- innovation of the city, ogy program in the to participatory environmental management. Investment: COP 60,000,000 ances, processes and especially the Bogo- Group’s areas of in- The event, held between 20 and 21 Septem- spaces for its devel- ta-Sabana de Bogotá fluence. ber 20 and 21, 2014, convened about fifty people, ˦˦ The importance of energy for development: opment, in the frame- power cluster. ˦˦ Develop a bank of in- including developers, systems engineers, environ- Vicente Albeniz, director of the Department of work of the Strategic ˦˦ Promote manage- novation as a frame- mental, designers, botanists and people interested Science in the Colombian School of Engineering Operation Innovation ment activities and work to identify new in environmental sustainability. Nineteen propos- attended the Grupo Energía de Bogotá’s Fabio Ring in Bogotá. exchange of knowl- projects, building als in total were received, of which three concerned Chaparro Award Ceremony. ˦˦ Strengthen the alli- edge to promote inno- project methodology biodiversity, five were on energy, and five on -or ance for innovation vation in the Group’s given by the PMI. chids, while six dealt with sustainable tourism were Additionally, the EEB has participated, together with with other actors in management. presented. the National University of Colombia and other compa- Percentage contributed by the Foundation: 32% nies in the Colombian energy sector, in research proj-

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˦˦ Evaluation of participation in Tren Tran- • Meet the performance and efficiency of electric vía– Southern and Western Corridors, PPP vehicles and electric infrastructure required for initiatives with public funds which seek the con- operation. struction and operation of a light rail system (LRT) to the south and west of the city, where As a first pilot EEB-Codensa in conjunction with Sie- there are currently railroad tracks. It is pres- mens-Higher have tested a 12-meter bus (standard) ently subject to a feasibility assessment, it is Series Hybrid type supported by the National Universi- expected that bidding will be opened for the sec- ty. Currently, it is in partial implementation phase and ond half of 2015. is scheduled for development during 2015. ˦˦ Coordination and participation in the Electri- cally Assisted Bicycles (BAE) Pilot Plan for sharing, to be implemented at the Nation- al University in conjunction with the Institute of Recreation and Sports (IDRD), Secretariat of Mobility (SDM), Secretariat of Environment plementing pilot projects to develop local solutions (SDA), National University (UN) and the Grupo to improve mobility. Energía de Bogotá Foundation, in order to com- ˦˦ Responsibly promote changes in mobility through bine efforts as well as administrative, technical, initiatives that improve the quality of real service logistical, intellectual and technological resourc- to users. es to jointly develop a coordinated and associ- ˦˦ Contribute to the development of mass electric ated implementation of Phase 1 of a Pilot for ˦˦ Work toward EEB par- • Promote the applica- lot programs that EEB transport, managing regulatory changes and facil- shared bicycles of different technologies to es- RETOS ticipation in PPP proj- tion of new electric is presently heading. itating the development of electrical infrastructure tablish indicators for the mobility, performance Electrical Mobility ects of electric mobility mass transit technolo- • Work toward EEB par- required. and efficiency of BAE, electrical infrastructure, in the city of Bogotá and gy applicable to local ticipation in PPPs for charging systems and standards, regulation and obtain approval for the needs to increase fu- the electrification of ˕˕ WHAT DID WE DO IN 2014? incentives for implementation in Bogotá DC. It is same. ture demand for elec- Transmilenio routes, expected that Plan will be launched in the first The strategic line tricity trains and trams. ˦˦ Evaluation of participation in Bogotá Elék- quarter of 2015. raised in 2013 will be • Advance the neces- trika (PPP), caimed at commissioning electric ˦˦ Buses and Electric Vehicles Pilot Plan: as part continued in 2015. In sary steps to imple- vehicles for Transmilenio Phases I and II, in com- of the fulfillment of the Technology Improvement order to achieve its ment the bicycle, bus, pliance with Decree 477 of 2013 Technology Im- Plan (Decree 477 of 2013), pilot projects were fulfillment, the Com- and electric vehicle pi- provement Plan. The Company participates in this implemented in the provision of electric technol- pany will: project through in this project is through the EMB ogies for mass transit intended to: to coordinate the development of the electrical part / vehicle charging infrastructure. Currently, • Promote the development and application of it is undergoing feasibility assessment and the new electric bus technologies. opening of an abbreviated bidding process for the • Standardize systems load power. first half of 2015 is expected. • Encourage the participation of new suppliers.

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5. Care and Respect for the Environment

In EEB we seek to plan, construct and maintain our infrastructure in harmony with the environment, mitigate our operations environmental impact and add value to the environment.

5.1 BIODIVERSITY

˕˕ Why is it important?

The Company undertakes operations respecting biodiversity as a matter of tremendous importance. This is a factor that generates new sources of revenue by forming closer relations with the community through restoration activities in sensitive ecosystems. This has characterized EEB as a responsible and committed to the conservation of biodiversity in Colombia company. Commitment 3 In addition, managing biodiversity has positively impacted the relationship between the company For more information on eco-efficiency, and the regional environmental authorities as well please visit the following webpage: as the everyday life of community monitors and in- http://www.eeb.com.co/responsabilidad- habitants of the area of influence. global/gestion-sostenible/boletin-ambiental

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Area Percentage ˕˕ HOW DO WE DO IT? Ecosystem Description (ha) (%)

EEB acts in accordance with the terms of its Cor- censes (ANLA for the Spanish initials), which in turn Andean Forest Part of a large block of habitat called the Eastern Andean 35,21 30,15 porate Environmental Policy. It is for this reason performs the periodic monitoring of compliance of Orobiome. Its intervention has been classified as mo- that it quantifies the impact generated by its ac- the measures for biotic management. derately low, and representative samples of populations tivities on ecosystems. Also, it is developing man- On the other hand, EEB’s designated environ- vulnerable to extinction are kept. agement plans for the mitigation of these impacts, mental auditing performed the follow-up of EEB implementing tools for the development of impact contractors’ environmental obligations during the studies such as the general methodology for the operational phase, verifying compliance of each of presentation of environmental studies and Manu- the measures laid down in the Environmental Man- al for Assigned Biodiversity Loss Compensation. In agement Plan and verifying compliance by tracking Sub-Andean Including both the Central and Eastern Cordillera cloud 49,31 42,23 addition, the Company acts as an active agent in the proposed indicators. Forest forests. These are part of the district of eastern cloud

the preparation of the Plan of Action of the National G4.EN11 forests of Caquetá-Cauca-Putumayo-Nariño and Putuma- Policy for the Integrated Management of Biodiver- Representative Ecosystems yo Alto district. sity and Ecosystem Services, led by the Alexander von Humboldt Institute. The most representative ecosystems in the Compa- The vegetation on the edges of easements is ny’s area of influence o are the sub-Andean forests managed with an ecosystem approach, applying in- (49.31 ha, 42.2% of natural ecosystems) located Basal Forest It has a very heterogeneous floristic composition and is 31,08 26,62 spection criteria and specific management measures within the jurisdiction of the departments of Hui- characterized by the presence of numerous species of for areas of high biodiversity (that are adjacent to la, Cauca, and the Protected Forest Reserve of the palms and soles of large (macrophyllous) giant leaves protected areas and hotspots). Upper Mocoa River in the department of Putumayo. (megaphyllous) and. In addition to its role as a clima- Next in importance is the Andean forest (35.21 te regulator, its complexity and diversity make it a rich ˕˕ how do we assess it? ha, 30.2%), located in Huila (Pitalito); Santa Rosa source of biodiversity, germplasm and genetic resources. (Putumayo); and Pasto (Nariño), followed by bas- Within the Vice-Presidency of Transmission, those al forest ecosystems (31.08 ha, 26.6%) distributed responsible for the implementation, execution and in the province of the Amazon, in the department Paramo An endemic ecosystem of the northern Andes with a high 1,17 1,00 monitoring of programs that make up the Physical of Putumayo, and the warm area of Huila. Last is variety of biotic availability, where about 60% of vascu- and Biotic Management Plan are the environmen- the páramo (1.17 ha, 1%), which is located within lar plants are endemic and this makes it one of the most tal management of UPME and the HSE area in the the boundaries of Putumayo and Nariño. The exten- vulnerable ecosystems in the country. It has a high level headquarters in Bogota, as well as offering techni- sion of existing natural ecosystems along the line is of endemism in amphibians, reptiles, birds, mammals cal support in the offices located in Pitalito (Huila) 22%; Huila represents 21%, Cauca 61%, Putumayo terrestrial vertebrates and vascular plants, much higher and Pasto (Nariño). 42% and only Nariño 12%; these percentages are than elsewhere in the world. In 2014, the Company implemented the En- given based on total department. vironmental Management System. The annual or Below is the description of the most important semi-annual Environmental Compliance report was ecosystems occurs in terms of biodiversity, areas Total 116,77 given to the National Environmental Authority Li- and percentages for cover:

Table 9. Ecosystems in terms of biodiversity, areas and coverage percentages.

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Zones of High Value for Biodiversity

Protection Geographical location Type of operation Area in km² Value for diversity Status

Protected Forest Jurisdiction of San Francisco and Transmission of 300,34 km² Due to its size and the degree of biodiversity conservation, wildlife and flora indices are Protected forest Reserve of the Upper Mocoa municipalities in the Putumayo electrical energy at high. In the area currently there are vulnerable and endangered species such as the poiso- reserve. Mocoa River department, Andean region. 230 kV. nous frog Epidobates ingeri, y and plant species such as achapo (Cedrelinga catanaeformis) and cumin (Aniba sp.), which increases the strategic nature of the reserve. However, within the reserve are human settlements that cause pressure on resources. It has regional conservation status.

Protected Forest Department of Nariño, in the Transmission of 499,15 km² Within this reserve is the Laguna de la Cocha, one of the largest and well preserved lakes Protected Forest Reserve of the Laguna jurisdiction of Pasto in the Andean electrical energy at in the northern Andes, considered as the largest reservoir of fresh water in Nariño depart- Reserve. de la Cocha, Cerro Region. 230 kV. ment. The Laguna de la Cocha is the recipient of several rivers and streams, and is the Patascoy source of Guamués river (a tributary of the Putumayo River, in the Amazon Basin). Corota Island is a wildlife sanctuary of wildlife, Andean forest orobiome; predominant species include Weinmannia tomentosa, Colombian pine, Tibouchina lepidota, and palm wax; páramo ecosystems include the presence of frailejones such as Espeletia hartwegiana, Blechno loxensis, Calamagrostis spp., Hypericum spp. and Festuca spp.

The Eastern Forest, Andean Region, Department of Transmission of 131,43 km² Due to the environmental services it provides to Bogotá, it is a strategic area, which UICN: IV - Protec- Bogotá Cundinamarca, to the east is Bogotá electrical energy at include the recharge and regulation of aquifers, soil protection, scenic value, oxygen ted Forest Reserve. city. 230 kV. supply to the city, regulation of climate and provision of water to different communities. It is estimated that about 64% of the area under forest cover is in good condition and that it preserves important ecological values in both flora and fauna.

Protected Forest Jurisdiction of the municipality Transmission of 39,95 km² Protecting a landscape of significant biodiversity value, represented by the páramo and UICN: VI - Protec- Reserve of Páramo of Guasca, in the department of electrical energy at sub-páramo, the Reserve shows clear damage to the There are obvious changes in the cool ted Forest Reserve. Grande Cundinamarca, Andean Region. 230 kV. cold rain forest due to the development of agricultural activities, including potato crops and dairy farming. Some vegetation is in good condition in areas of broken terrain and that are difficult to get to as well as in the margins of waterways connected to the Chingaza Natural National Park to the south.

Table 10. Zones of High Value for Biodiversity

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Significant Impact on Biodiversity

EAmong the significant impacts of the operation is In order to mitigate permanent, but reversible impact, G4.EN12 the possible introduction of invasive species, pests EEB is carrying out 1: 10 Reforestation. or pathogens, reducing species populations, habitat conversion or ecological changes outside the range of natural variation.

Potentially affected species

Geographic location Identified species at risk of extinción of the habitat

Tropical Between 0 and 1,000 masl. • Ara militaris VU. • Panthera onca N T. Rain • Anthocephala floriceps VU. • Lontra longicaudis DD. Forest • Aburria aburri N T. • Myrmecophaga tridactyla VU. • Phlogophilus hemileucurus VU. • Tapirus terrestris VU. • Heliodoxa gularis VU. • Tayassu pecari VU. • Micromonacha lanceolata VU. • Ateles belzebuth EN. • Speothos venaticus N T. • Lagothrix lagothricha VU. • Leopardus wiedii N T. • Mazama americana DD.

Sub- Between 1,000 and 2,000 • Ognorhynchus icterotis EN. • Dacnis hartlaubi VU. Andean masl. • Vulthur gryphus N T. • Atlapetes fuscoolivaceus N T. Forest • Tinamus osgoodi VU. • Spizaetus isidori VU. • Leptotila conoveri EN. • Aburria aburri N T. • Grallaria alleni VU. • Odontophorus hyperythrus N T. • Atlapetes flaviceps EN. • Phlogophilus hemileucurus VU. • Leptosittaca branickii VU. • Micromonacha lanceolata VU. • Ara militaris VU. • Tapirus pinchaque EN. • Hapalopsittaca amazonina VU. • Leopardus tigrinus VU. • Anthocephala floriceps VU. • Tremarctos ornatus VU.

Andean Between 2,000 and 3,000 • Ognorhynchus icterotis EN. • Atlapetes fuscoolivaceus N T. Forest masl. • Tinamus osgoodi VU. • Eriocnemis derbyi N T. • Leptotila conoveri EN. • Spizaetus isidori VU. • Leptosittaca branickii VU. • Odontophorus hyperythrus N T. • Grallaricula lineifrons N T. • Tapirus pinchaque EN. • Grallaria rufocinerea VU. • Tremarctos ornatus VU. • Andigena hypoglauca N T. • Pudu mephistopheles VU. To understand IUCN’s “Categories of • Hapalopsittaca amazonina VU. • Leopardus tigrinus VU. Threat”, plese visit: • Atelopus ignescens EX. http://www.iucnredlist.org/ (VU, NT, EX, DD, EN) Table 11. Species potentially affected by the Company’s operation.

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Protected or Restored Habitats G4.EN13 Restauración verified What the Type of Geographical Área of by independent intervention Restauración verified What the Forest Location Protected Space Type of Geographical Área of third parties consists of by independent intervention Forest Location Protected Space third parties consists of

Tropical Altamira 4,18 ha Magdalena Regional Autono- Isolation and enrichment. Dry Municipality, mous Corporation, Town Hall Andean Department of An alliance with Corpoa- Forest Huila. and Community Action Com- Forest Nariño: Pasto (8,22 mazonia exists for the con- mittee, the rural settlement of ha) servation of an area of 17 El Grifo. ha in the upper Putumayo Department of River Basin. Cauca: Santa Rosa (1,9 ha) Andean Departments 62,05 ha Magdalena Regional Autono- Isolation and enrichment, Forest of Huila, Cauca, mous Corporation, Valle del biodiversity monitoring Putumayo y Department of Cauca Autonomous Regional and entry into the Regional Nariño. Huila, Pitalito, Corporation, Corpornariño, System of Protected Areas, (2,64 ha), Palestina property owners, Community complying with require- 8,3 ha), Timaná Action Committees. ments of the National Envi- Tropical Departments 5,7 ha Valle del Cauca Autonomous Isolation and enrichment. (2,14 ha) ronmental Authority. Rain of Putumayo y Regional Corporation, Com- Forest Cauca Department of munity Action Committees. Department of Putu- Putumayo: Mocoa mayo: San Fran- (3,2 ha) cisco (17,14 ha), Santiago (2,83 ha), Department of Cau- Mocoa (1,67 ha) ca: Santa Rosa (2,5 ha).

Table 12. Protected or Restored Habitats.

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˕˕ WHAT DID WE DO IN 2014? ˦˦ The Company remains committed to the conser- published in The IUCN Red List of Threatened Spe- location of 803 vascular and nonvascular epiphytes, vation of Andean bear (Tremarctos ornatus) and cies-International Union for Conservation of Nature according to the requirements established in Res- ˦˦ Within the Protected Forest Reserve to the east mountain tapir (PHVA), two of the most threat- y Apéndices CITES, during transfer, storage, reloca- olution 1427 of 21 October 2013 issued by the Di- of Bogotá, the Company obtained a logging per- ened mammals in Colombia, by supporting local tion, maintenance and monitoring activities during rectorate of Forests, Biodiversity and Ecosystem mit from the CAR-Cundinamarca for the felling of organizations. In the Department of Putumayo, the construction of the following projects: Services (DBBSE), part of the Ministry of Environ- 1,228 trees patula pine (non-native and invasive with support from Corpoamazonia and the WWF, ment, Housing and Territorial Development. species) in the South Corridor-Bogota System Bo- monitoring activities are carried out using cam- • Thessaly Substation 230 kV Project, Thessa- gotá. These trees presented a risk to the proper era traps, launching Field Manual for Communi- ly-Altamira 230 kV Transmission Line. ˦˦ Environmental Management of Tominé Res- operation of the lines. This intervention had a pos- ty Monitoring and the Amigos del Oso (Friends of • Reconfiguration of Bethany-Jamondino 230 ervoir: The present Tominé reservoir is the wa- itive impact, considering that a portion of a planta- the Bear) meeting. The latter brought together kV Line. ter reserve of the Bogotá Plateau that has the tion of alien species was removed, to be replaced nearly 1,000 community youth workers and lead- • Expansion of 230 kV Altamira Substation. largest capacity, availability and quality. It is by a compensatory reforestation with native spe- ers of schools from the catchment area who are • Works that are part of the UPME Call 05, considered one of the most important reserves cies, which will improve the ecological conditions dedicated to the conservation of the two species. 2009. for Bogotá, as it permits: of the sector and increase the rate of biodiversity. ˦˦ The project was implemented to support the mon- ˦˦ We furthered the protection of biodiversity in 53.9 itoring of the Andean bear, which identifies move- The rescued specimens were relocated in in the Ep- • The improvement of water quality in the main ha, by maintaining a 33,695 individual specimens ment patterns and habitat use of this species and iphytes Relocation Area Relocation epiphytes (ARE) tributary (Tominé River) through a natural fil- from ecologically important species. Of these, its relationship with the abundance of small mam- located in the La Guasimilla Finca, located in the ter at its entrance comprised of macrophytes 26,513 specimens correspond to endangered spe- mals. Likewise, the possibility of man-bear conflict town of Altamira, Department of Huila, with the represent in the reservoir. cies worldwide and / or national scale as follows: was managed through community conservation 1,630 of Quindio wax palm (Ceroxylon quindiuense) agreements in the town of Gachetá (Cundinamar- 22,103 oak (Quercus humboldtii) and 2,780 Colom- ca). An alliance was formed between the Com- bian pine (Podocarpus oleifolius) . The remaining in- pany, the GEB Foundation, the WII Foundation, dividual specimens correspond to dominant species the Foundation for Sustainable Territorial Devel- of terrestrial natural ecosystems with low represen- opment (Fundesot) and the Regional Autono- tation in Colombian territory: 3,532 maco (Poute- mous Corporation of Guavio (Corpoguavio. The ria lucuma), 35 peanut (Brunellia subsessilis) and GEB Foundation gave 13%, while EEB provided 1,000 mano de oso (Oreopanax parviflorium). 23.96%. During 2014, there were four briefings ˦˦ The EEB handled the planting and maintenance of on planning and assisted reforestation, two train- 2,256 trees with native species in the Protected For- ing session on the implementation of reforesta- est Reserve to the east of Bogotá, not to mention tion, ten hectares were reforested 9,070 trees of 900 trees of native species in the Cárpatos Forest 19 different species were per hectare. Reserve, located in the La Conception rural settle- The Environmental Coordination Management Proj- ment located in the municipality of Guasca, Cundi- ects (UPME) implemented for species of vascular and namarca. This corresponds to 800 individual plants nonvascular epiphytes that are protected according from Baccharis latifolia, 600 Baccharis bogotensis, to Resolution 0213 of 1977, issued by the INDER- 600 Myrcianthes leucoxyla, 300 Senna multiglandu- ENA, and to those that are included in national lists losa, 320 Viburnum triphyllum, 320 Morella pubes- of threatened species (according to Resolution 0192, cens and 260 Myrcianthes leucoxyla. 2014) and listed internationally (according to listings

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• The provision of water to the Bogotá River to lution 0776 of 2008 issued by the National Authori- Progress made in the environmental management programs during 2014: satisfy different environmental demands of the ty of Environmental Licenses, has permitted linking aqueduct, agriculture as well as the genera- to stakeholders (about 2,500 people) to processes Program 1. Hydraulic Sustainability of the Reservoir tion of power. for the recovery, conservation and protection of this • The pumping of water surpluses from the Bo- strategic water resource. gotá River to control flooding in rainy periods, The Environmental Management Plan was carried Project 1. Tominé The operation of the reservoir was maintained in accordance with the provisions as it is the only reservoir north of Bogotá that out by means of six programs, twenty projects and a Reservoir Operation of the program and the guidelines issued by the CAR, which has helped to re- can do so. contingency plan aimed directly and / or indirectly at gulate the excess water that the Bogotá River occassionally presents in order to • The provision of water to the Bogotá River to the recover of the affected resource, which is main- prevent flooding and improve the river quality for further purification. reduce concentrations of some contaminants ly due to the excessive use of agrochemicals in the that predominate in dry periods, especially sol- upper basin, the lack of optimization of wastewater Project 2. Removal 82.72 acres of water buchón (a plant) were removed for a total of 1175.56 id contaminants, in order to contribute to the treatment by the inhabitants of the municipalities in of aquatic vegetation hectares since 2005, with the goal of keeping the water mirror of the reservoir water purification that takes place in the Tib- the area of influence and vegetation affected within clear of vegetation. itoc plant, thus benefitting different commu- the reservoir flood level. nities, including all Capital District residents. For this, EEB and EMGESA joined forces to imple- Project 3. Removal of With the aim of reducing the supply of nutrients to the reservoir of Tominé, ment operational strategies, environmental and social acacias in the floodplain caused by the decomposition of woody vegetation, 387.23 hectares of acacias The approval of the Tominé Reservoir Environmental technical management with a cumulative investment and 132,84 hectares of gorse were removed. In compensation, a total of 12,277 Management Plan in operation, by means of Reso- of USD 26,025,092,246 since 2008: individuals of native tree species has been planted from 2012 to 2014.

2008 Project 4. Waste EEB continued its comprehensive waste plan, which provides for the removal, Management Project in the storage and disposal of conventional waste (usable and unusable) and dan- 2.265.000.000 operation and maintenance gerous. Liquid waste generated by domestic wastewater bathrooms and sinks of the reservoir continues to be treated with grease traps, anaerobic wells and subsequently with a disposal field. 2009 2010

2.462.479.114 3.475.232.603 Project 5. Project manage- EEB and its contractors store chemicals and implements according to the best ment of chemicals in the practices for the proper handling of chemicals, in accordance with established operation and maintenance procedure established. of the reservoir 2011 2012 2013 2014 Project 6. Promotion of EEB, in compliance with Resolution No. 681, 2013, which regulates fishing 3.987.997.628 4.580.000.000 4.329.321.608 4.925.061.293 regulation of fishing in the activity, in conjunction with the fisheries authority to control fishing gear and reservoir methods, access to the premises, and sustainable use of this resource. There are twenty-seven 2014 authorized artisanal fishermen.

Figure 19. Investment made to implement management strategies for the operational, environmental and social management in Tominé.

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Project 7. Regulation of In order to ensure entry into land where the reservoir is located and that are ow- Program 2. Social and Inter-Institutional Management of the Reservoir access to land ned by BSE, and the proper use of the same with minimal environmental impact, 97,361 linear meters of fencing have been built and maintained. The development of this project promotes community participation in social Proyecto 12. Participación projects and encourage the local population’s responsibility for the proper use Project 8. Billboards giving Until 2014, there were nineteen informative billboards on the perimeter of the de la comunidad en la of Company premises and the promotion of a stable foundation of measures information about the reservoir that warned about its importance, environmental control and risk sostenibilidad del embalse for the prevention, control and mitigation of environmental impacts in the area Reservoir and its uses prevention. of influence. In 2014, two projects were launched: one for the formation of an association of recyclers in the town of Guatavita as well as an Ethno-tourism Project 9. Public Pier EEB promoted the management to facilitate access to and use of the reservoir project due to archaeological finds. in Guatavita by a public jetty in Guatavita, in concordance with the provisions of the environmental and regional and municipal authorities. Project 14. Control These projects have gradually managed to phase out grazing. Project 10. Management During 2014, we continued with the training, coaching and drills with internal of grazing in Reservoir By 2014, there were nine associations comprising 330 members. An important result to control wildfires in the staff and the community about fire control. river zones is the decrease of the dumping of organic matter into the reservoir and the erosion of land area of direct influence surrounding soil.

Project 11. Environmental In 2014, there was greater participation and environmental management Program 3. Promotion of inter-agency coordination and social participation for environmental recovery of the Tominé reservoir Management Project in pe- aimed at taking better care of the reservoir by clubs in the area. EEB ripheral clubs located in EEB continued the monitoring the implementation of environmental measures, reservoir properties training club personnel in different matters, proceedings before the autho- Project 15. Promotion of controlling sewage discharges of sewage. rities, legal compliance, security and emergency care brigades. Project 16. Promotion of the construction and proper operation of plants treating domestic sewage from flowing into the reservoir from local municipalities. Project 13. Assessment of The Company undertook limnological monitoring demonstrating the good water water quality in the Tominé quality conditions of the reservoir during 2014,. This, especially, was due to the Project 17. Promotion of the control of agricultural, mining and farming practices that ne- reservoir greater control implemented by the environmental authorities of the treatment of gatively impact the reservoir. wastewater discharges. Likewise, there was an improvement of water quality of the Tominé tributary passing through the containment area by using water-buchón Description of Project During 2014, as part of the management of these projects, the follow-up and as biofilter. 15,16 and 17. control of the main activities of natural and legal persons in the area of influence of the reservoir was carried out, this showed significant progress in Project 22. Removal of tree Considering the risk that individual trees could fall, in order to avoid possible municipal administrations regarding the control of waste generated as well as or shrub vegetation above to roads, infrastructure or the general community, the Company requested of practices that, eventually, de to a lack of monitoring and control by environ- the flood risk area with a permission to fell 64 trees from the environmental authorities, and, in compen- mental authorities could generate negative impacts on water resources risk of falling sation, planted 2,080 trees that are native species.

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Program 4. Employment generation through the campaign: Income generation opportunities from activities related to the maintenance of the reservoir

Project 18. For operation and maintenance of the reservoir, natural and legal persons were hired as determined by the actual service: 64% of the municipality of Guatavi- ta, 10% of Sesquilé, 3% of Guasca and 22% of other areas were hired in 2014, giving employment to ninety-eight people.

Program 5. Environmental Education

Project 19. Coordinate In 2014, the joint actions of the reservoir under CIDEA management (Inter-ins- actions by the Tominé titutional Committee for Environmental Education) of the municipalities in the reservoir related to the area of influence was promoted by the active participation in their public calls implementation of public and working toward institutional strengthening. policy on environmental education in the area of influence

Program 6.

Projects 20 and 21. Since the implementation of the Environmental Energy Plan in Tominé, inter-ins- Information management titutional meetings have been held with municipal authorities, environmental and communication authorities and the community to work towards the fulfillment of environmental for inter-agency and social activities to create knowledge concerning the fulfillment of the en- coordination. Information vironmental and social activities related to the Reservoir, as well as strengthen and communication of relations regarding the handling requests, complaints and / or claims. These environmental management meetings attended by about 2,500 people. for the Tominé Reservoir

Table 13. Progress made in the six programs that correspond to the Environmental Management Plan of the Tom- iné Reservoir in 2014.

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Among the activities undertaken by EEB and ˦˦ Mosquito Control: With the action taken since Emgesa in the reservoir are the following: 2005, catches of 91,756 was reduced to 84 in 2014, which is mainly attributed to spraying and • Cleaning and leveling of the reservoir tails. cutting of grass and the removal of water. • Total removal of water bichón. • Implementation of forced aeration. On the other hand, during the recover of the res- • Control of larvae and mosquitoes. ervoir, some things should be highlighted, such as • Program for the monitoring of mosquitoes. thereturn of some species of ecologically import- • Programs for water and air quality monitoring. ant birds like the hawk, which is at the highest lev- • Control of mosquitoes. el of the food chain and, as such, shows variation in • Air quality studies. prey and especially to the conditions of ecosystem quality. Another of these species is the coot, which More information is given below regarding progress is linked to reed marsh vegetation or open water made in 2014 in the areas of: ecosystems. These species, along with others that have returned, are good bioindicators of the state ˦˦ Total removal of water-buchón from the water of these ecosystems. mirror: Total removal of water-buchón and off-sho- tes from the water-mirror.

˦˦ Environmental management in the Muña This situation caused EEB and Emgesa, in Reservoir: The Muña reservoir, owned by Emge- compliance with Resolution No. 506 of March sa since 2007, was built by the Empresas Uni- 28, 2005 issued by the Regional Autonomous ˦˦ Continuing working for monitoring under the juris- kV Substation, the Thes- das de Energía Eléctrica (now EEB) in 1943 to Corporation of Cundinamarca, to carry out en- CHALLENGES the protection and con- diction of the Corporation saly-Altamira 230 kV store the waters of Muna, Aguas Claras and the vironmental actions during the last ten years servation of (Tapirus pin- for the Sustainable Devel- Transmission Line; the re- Biodiversity Bogotá Rivers to use them for power generation worth COP 23.776.000.000, with a annual bud- chaque) and Andean bear opment of Southern Ama- configuration of the Betha- in the Canoas, Salto, Laguneta and Dario Valen- get of approx.. COP 2.1 billion. (Tremarctos ornatus) clas- zonia (Corpoamazonia) and ny-Jamondino 230 kV line; cia plants. On March 28, 2014, the First Section of the sified by the International Corpoguavio Colombia, as and expansion of the Al- The increase in population in Bogotá and lo- Colombian Council of State Council issued a Union for Conservation of well as the Ideas for Peace tamira 230 kV Substation.. cal municipalities on the Bogotá River as well as ruling, stating that EEB is not polluting the Bo- Nature (IUCN) as Endan- Foundation. ˦˦ Continue to maintain the development of different industries, have grad- gotá River, neither is it responsible for the riv- gered (EN) and Vulnerable ˦˦ Initiate the implementation copies of vascular and ually changed the water quality of the river and er’s environmental and ecological catastrophe. ( VU) to extinction, respec- of the Plan Compensation non-vascular epiphytes re- now there is a complete absence of dissolved ox- However, in that decision, it ordered Emgesa tively. for loss of biodiversity in located to the La Guasimil- ygen. The Muña Reservoir is no longer a place for and the Regional Autonomous Corporation of ˦˦ Strengthen community or- the project area of influ- la Finca located in the town recreation and leisure tourism and has become a Cundinamarca (CAR) to coordinate with EEB in ganization for community ence of the Thessaly 230 of Altamira. source of negative environmental impacts, due to the performance of all of the necessary activi- the mosquito population, odors, landscape degra- ties for the operation and maintenance activi- dation and conflicts with communities. ties Muña reservoir.

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5.2. AIR EMISSIONS AND CLIMATE assets, such as floods, landslides, forest fires, and used to evaluate business strategy, investment decisions Within the analysis of the reduction of nega- CHANGE disruption of ecosystems, among others, which can and the objectives of eco-efficiency. tive impacts, the Company has established mea- affect both operations and stakeholders. As part of the Company’s commitments to sustain- sures aimed at reducing emissions from projects ˕˕ WHY IS IT IMPORTANT? For this reason, we have a strategy to help reduce ability, it began to develop its Comprehensive Plan on that encourage the use of bicycles by employees our emissions and ecological footprint that is critical Climate Change in 2013, to quantify the Company’s and promote sharing vehicles on the road. Also, The management of air emissions is essential for to EEB and is also an opportunity to continue in the greenhouse gas emissions and implementing actions to the Company seeks to encourage the optimization the Company, on the one hand, because in the search for best practices and implementation of mea- mitigate these emissions and compensation alternatives. of maintenance management in substations, sig- Group’s operations greenhouse gas emissions such sures awareness and prevention of climate change. In addition, EEB has a processes oriented toward nificantly reducing SF6 gas leaks today in normal as CO2, CH4, N2O, HFCs, PFCs, and SF6 are gen- Environmental Partnerships and Health and Safety at conditions, to reduce leakage in comparison from erated, not to mention that the Company’s carbon ˕˕ How do we do it? Work Management, aimed at generating guidelines previous years. footprint can be reduced by mobilizing employees, to formulate, implement and monitor the program of To carry out the control and monitoring of en- substation maintenance and leaking gas emissions. EEB manages its climate change strategy based on its environmental and energy management and, also, vironmental and energy management are held, as In addition to the above, we have identified risks Corporate Environmental Policy, which analyses the include the process of institutional environmental are risk analysis and controls, environmental per- associated with climate change leading to potential Company’s ecological footprint and ensures that climate management, defining the activities related to the formance evaluations, analysis of opportunities and negative impacts on the Company’s business and change figures as part of the environmental variables management of climate change. synergies, and internal and external audits.

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Climate Change Strategy Among the measures that are being advanced for ˦˦ Quantification of emissions in tons of CO2 eq. for the identification and evaluation of the overall risks business flights. Climate change strategy is based on: of the Company are:

Direct Emissions of Greenhouse Gases G4-EN15 ˦˦ Quantification of greenhouse gases emissions for (Scope 1) Low Emission Operations EEB in direct and indirect emissions. ˦˦ Total Inventory of greenhouse gas emissions, The total direct GHG (Greenhouse Gas) in tons of • Measurements of all carbon footprints of the Group’s subsidiaries. Scope 1, 2 and 3. CO2 for 2014 was 2102.06 tons CO2 eq. / Year, • Establishment of strategies and objects to reduce emissions. ˦˦ Diagnosis of constraints and opportunities for mea- compared with the data reported for 2013 to

suring the carbon footprint for the EB Group. 1011.12 tons CO2 eq. / Year, an increase of 108% Environmental Compensation ˦˦ Strategy for Climate Change was defined and im- could be seen. This value is mainly due to leakage plemented to start in 2015. of SF6 gas in substations. • Compensation for loss of biodiversity in development projects. ˦˦ Quantification of emissions in tons of CO2 eq. To be able to calculate the carbon footprint, • Footprint Offset Projects focused on watershed protection and biodiversity. (Equivalent) for SF6 leaks. measurements taken in 2011 were used as the

˦˦ Quantification of emissions in tons of CO2 eq. by base, according to the identified variables, and Being a dynamic agent of change power consumption EEB SA ESP. to date:

• Initiatives to change patterns of behavior among employees and other stakeholders. • Comunication. Emissions 2011 2012 2013 2014 • Promotion of government / NGOs / Global Compact initiatives to develop adaptation strategies for climate change. SF6 leaks in substations 1.482 604 979 2.045,10

Emissions of CO2, CH4 and N20 in mobile 18 9 18 33,79 combustion

Emissions of CO2, CH4 and N20 in stationary 3 2 0,1 1,73 combustion

Fugitive-other emissions. Risks and Opportunities presented by EEB includes non-company related environmental Emissions and / or 10,5 10,2 14,02 21,43 Climate Change factors in its business risks relate to its transmis- extinguishers. sion infrastructure from project feasibility and de-

G4.EC2 Total ton CO2 e/año 1.513,5 625,2 1.011,12 2.102,06 The Company is performing different measurements to sign, to operation and maintenance of the actual identify and evaluate the risks posed by climate change. built infrastructure. Table 14. Scope 1 Measurements.

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emissions from burning fuels during elecricity gen- Reducing Emissions of Greenhouse G4-EN19 eration. Gases The emission factor for electricity (FE) is updated each year, as it is established in accordance with If 2013 data is compared (455.46 Ton of CO2 eq. the consumption of fossil fuel for electricity gener- for a quantity of 270 employees) in 2014 (491.32 ation in each country. Ton of CO2 eq. for a quantity of 326 employees) and the data is calculated per capita, the value Other indirect emissions of greenhouse obtained is 1.68 Ton of CO2 eq. per employee for gases (Scope 3) 2013 and 1.51 Ton of CO2 eq. 2014, indicating that there was a decrease of 10%. This value re- G4.EN17 Other indirect emissions that were generated for flects the different initiatives that have been im- 2014 were 491.32 tons of CO2, mainly correspond- plemented in the company, such as campaigns to ing to the combustion produced by fuel vehicles and promote the use of bicycle, carpooling, no paper, the displacement of workers by different means. among others.

Ton C02. Scope Inventory 2011 2012 2013 2014

The company is analyzing information for deci- For the control of information, the Company has fo- sion-making aimed at redefining the baseline in cused on operational control by implementing a sys- Alcance 1/ Scope 1 1.513,50 625,20 1.011,12 2.102,06 accordance with the growth in personnel, infrastruc- tem of tracking and monitoring, an example is the ture and transport has emerged primarily during SF6 inventory carried out in the substations.

2013 and 2014. Alcance 2/ Scope 2 44,00 23,40 107,77 119,09 For all measurements, the company uses the Indirect emissions of greenhouse gases reference point of the provisions of Protocol Green- to generate energy (Scope 2) house Gases WRI and WBCSD [1] and the NTC- Alcance 3/ Scope 3 351,20 206,20 455,46 491,32 ISO 14064-1 Guide. This part of ISO 14064 details By 2014, indirect GHG emissions were generated G4.EN16 the principles and requirements for the design, de- due to the consumption of purchased electricity for velopment and management of inventories of GHG offices, with a total of 119 metric tons of equiva- Total 1.908,70 854,80 1.574,35 2.712,47 (Greenhouse Gas) for companies and organizations, lent CO2. This calculation is obtained by multiply- and for reporting these inventories. With the imple- ing the purchased electricity consumption by the mentation of this methodology, the intention is to factor of electricity by 2014, which is 200 gCO2 / understand the Group’s collective footprint. kWh according to the XM source. This includes CO2 Table 15. Total emissions

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˕˕ what did we do in 2014? by employees and points of origin of travel in • Implementation of the ABOX software, a man- • In the medium term (3 years), we expected to the city, which enabled us to identify mobility agement system for electronic records that ma- reduce paper consumption by 50%. ˦˦ During 2014, progress was made to support to patterns and transport use. nagenes all types of electronic files. This tool is • Currently, the project is in the phase of stabi- subsidiaries for the inventory of greenhouse gas • As a result of this initiative 42 shared trips integrated with Office and e-mail. lizing the tool, which involves a tuning process. emissions, especially concerning the training and were made: 66% with one passenger, 17% • By 2014, two awareness campaigns were car- reporting of information through a tool generated with four, 11% with two and 6% with three ried out using the Entérate and blog platforms, ˦˦ Optimizing the management and maintenance of by the Group companies due to GAIA consulting. people. as well as the information screens. equipment and vehicles: preventive maintenance, ˦˦ Strengthening the process for the planning, imple- • Around 120 people were trained. periodic operational inspections, among others. mentation and monitoring of the Environmental and ˦˦ During the pilot project using electric bicycles, “I Energy Management System, according to the guide- move by bike,” during December, there was an lines established in the ISO 14001 and 50001 stan- awareness day, induction and test drive, which had dards. 26 collaborators. The average daily use is 6 users, ˦˦ Car-pooling who travel 510 km, and, therefore, represent a reduction of 151 kg of CO2. ˦˦ Establish a standard inventory of panels) for solar power generation, • Held from 27 to 31 October, this activity was in- ˦˦ Zero Paper Campaign: This Project has been divid- CHALLENGES Greenhouse Gases for Group compa- which will supply 2% demand re- tended to point out the means of transport used ed into 12 phases: nies, using the tool generated in 2014. quired for company offices at the Cal- Atmospheric emissions and ˦˦ Update the 2011 base line to view le 73 headquarters. climate change Challenges for medium and long term ˦˦ Definition of the mid-term project of for the reduction and management of use electric bicycles for the transpor- atmospheric emissions. tation of workers based on measure- ˦˦ Supply, installation, testing and comments of the pilot program that began • Phase 1. Compilation information and technical, organizational missioning of photovoltaic cells (solar in late 2014. and legal requirements. • Phase 2. Analysis requirements, processes, procedures with- holding tables documentary. • Phase 3. Inventories information systems - Analysis of integration. • Phase 4. Research potential methodologies Management Sys- tem for Electronic Document File. • Phase 5. Functional requirements. • Phase 6. Model Selection. • Phase 7. Implementation of the protocol. • Phase 8. Design of pilot tool. • Phase 9. Gradual Implementation. • Phase 10. Stabilization. • Phase 11. Follow-up and control. • Phase 12. Audits and continual improvement.

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6. Improve the quality of life of the communities where we operate

The Company seeks to strengthen its relationships with communities in its areas of influence by investing in the economic and social development of these communities and by the timely and adequate management of the impact generated by operating activities of the Group companies there.

6.1 SOCIAL INVESTMENT IN COMMUNITIES WHERE WE OPERATE

˕˕ WHY IS IT IMPORTANT?

Social investment projects are aimed at improving the quality of life of communities where the Company has influence. In addition to facilitating relations between the EEB and these stakeholders, they contribute to the success of its operations: thus ensuring that all projects have a positive impact on local communities and build trust between communities and Group companies, providing quality structures that generate a sense of belonging among the communities in the area of influence. These projects are undertaken according to the Commitment 4 needs identified with the communities, the Social Re- sponsibility Policy and, where appropriate, with the development plans of the different municipalities. They are intended to be aligned the needs of communities, local authorities and NGOs with the GEB’s interests.

163 G4 EC7 - EC8 164 ˕ ˕ ˕ ˦ ˦ visits to carryoutcommunity interviews. taken, together with the elaboration of reports and field under is analysis cost-benefit addition, In audits. ect favor in actions proj- measuredin is ofthecommunities The monitoringof thequality, relevance andimpactof are productive and provide community benefit. for them volunteercalls in to participate projects that invite and communities with dialog and fieldwork take eas of the country, members of the Foundation under each projecttoenhanceitsresults. target interest groups and has strategic partners for tation, the Company uses approaches participatory to for Development). For project definition and- implemen opment, Project with communities and Communication strategic Devel Management,Human areas(Knowledge and support during project implementation. are voluntary and are reflectedin money, expert advice aligned tothe core of itsbusiness: energy. Investments from the Group for impact projects that are increasingly haspresence.Itreceivesthe Group donation anannual cle for generating assets social in where communities through the GEB Foundation, whichisthe main vehi- The EEB makes and manages investmentits social ˦ ˦ ˕ ˕ ˕ tation tation and sustainability strategy of the Group’s The EEB participated in the design, implemen influence oftheGroup’s subsidiaries. 175,000 people from in the communities area of In 2014theFoundation more than benefited When the GEB installs infrastructure in different ar The projects of the Foundation are based on four What didwedo2014? HOW DOWEASSESSIT? how doweit? EEB Sustainable ManagementReport 2014 - - - - - ˦ ˦ worked on: According tocommunity requests,theEEB has cluding: water resources and improvement of roads, in- infrastructure,ed tosocial improving accessto these projects were started and they are relat the 2014 UPME projects were approved. Eight of of influence of area the in communities the by toring of theseprojects. team for structuring,implementationandmoni- establish and guidelines define to launched and created was Committee Benefit Community for Projects Volunteer the purpose this For Benefit. companies’ Volunteer Projects for Community • • • • • • In total, eighteen projects were submitted and thetechnical component for recruitment ties in non-interconnected areas was identified Energy: concept oftheGroupincommunity. ficiency, all the while generating a much better quality andresourceef with plemented criteria It is intended that the above projects are im- (Risaralda). gel and Membrillal (Quindio) and Las Mangas • La Concha, ElRoble, and La Julia(Quindio). venir (Risaralda); Crystalline, Leaves Wide, Viejo (Huila); Planadas, El Rodeo and El Por ty centers, schools, sports facilities), in Hato provision of infrastructuresocial (communi Construction, improvement, adaptationand pinal and TheGalda (Department of Huila). Improvements inhousing:Sidewalks ElEs- aqueducts (Department of Huila). Improvements to and the Grifo ZapateroEl

Improvements to access roads: in El Ver El in roads: access to Improvements Energy demand in three communi------• • area of influence pertaining to theEnergía de Social infrastructure: schools. five install to undertaken was study sibility of drinking water. Likewise, a technical fea companies that have problems in the supply tions in the area of direct influence of the GEB Water: taic energy solutions in2015. was organized for the provision of photovol- 1 We identified ten educational institu- 2 Communities in theCommunities - operates communities wheretheCompany Improve quality oflifethe Commitment 4: ˦ ˦ - thatare lo institutions so that the educational project aimedatgenerating energysolutions this end, we worked on the design of a pilot and intelligentlightpoles,among others.To of communities through cells, solar light bulbs use ofenergytoimprove thelivingconditions The Company identified an action plan for the provements in social infrastructure. SA ESP made eleven requests for im Bogotá

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cated in non-interconnected areas and are located main cultural activities for the preservation and Social Investment Projects in the Group’s areas of influence comply with the strengthening of their cultural heritage, examples specifications defined in the Basic Services for -Ba include the Carnival of Forgiveness, where three sic Education program. thousand people benefited. ˦˦ Alliances were forged and training methodologies ˦˦ Agreements with indigenous communities were of scientific thought were systematized. This was signed to support the development of two produc- achieved by automating the Seed Program for Sci- tion projects: chagras (a traditional, indigenous entific Development initiative led by the Commit- agricultural unit) and crafts. In this way the EEB tee for the Democratization of Information (CDI supported indigenous communities in the area of Colombia). This project provided the Foundation influence of the Trecsa subsidiary in Guatemala, with the necessary tools to implement its own pilot through the marketing of handicrafts made by six- program, the Seed-Innovation, Science and Tech- ty indigenous women from Santo Domingo, Xena- nology program. coj and Sacatepéquez. ˦˦ The Company signed a mutual cooperation agree- ˦˦ The Company involved workers in social investment between GEB Foundation and the Fundación ment through the Uno Más (One More) volunteer Centro Internacional de Pensamiento Social y program, in which thirty-five Group employees par- Económico (The International Center of Social and ticipated in the Foundation’s activities, both inter- Economic Thought or CISOE for the Spanish-lan- nally and in communities in the area of influence. guage initials) for the preparation of the document In total we performed 260 hours of volunteer ac- Strengthening the competitiveness of the cocoa-chocolate production chain in the municipalities of Energy, Development and Equity: the use of wom- tivities: Medina and Ubalá, the Department of Cundinamarca en’s time. This document is intended to understand Department of Cundinamarca, Fundación Endesa, Corpoguavio, Municipality of Medi- Allies the benefits of energy to reduce the gender gap. • Registration and packaging recreational and na, Municipality of Ubalá. ˦˦ The EEB leveraged resources from alliances with educational material to be delivered in the organizations, local authorities and volunteers, Group’s area of influence. Percentage invested by the GEB Founda- 12% such as the mayors of Funes, Nariño, Palestine, • Accompanying the opening of Mochuelo Alto tion Huila, Medina, Ubalá and Gachetá, Cundinamarca, Scientists Club program in Ciudad Bolivar. Project achievements 87 producers benefited with: as well as with bodies like Corpoguavio, National • Delivery of recreational and educational ma-

Committee of Coffee-Growers, Fundesot and Fru- terial Fusiandoy, Putumayo. • 100 hectáreas were covered with a density of 900 of cocoa, seedlings 900 plantain tas del Macizo to enhance project implementation • Accompanying children who are the Founda- tres and 240 other species. • Delivery, advice and check the status of seedlings. and results. tion’s beneficiaries on a visit to Macanú Park. • 100% of farms received 100% of plaintain corms (900). ˦˦ Support was given to projects in accordance with • Seed for a day: children’s visit to the Scien- • Identification of properties, 412 advisory and monitoring visits, 25 ECA workshops. the values of indigenous peoples located in the tist Seed Project. • Socio-business support. co mmunities in the Company’s area of influence. • Logistical support for the Rights of Children **Note: 86% of farms received 450 cocoa seedlings and 14%, 900. Proof of this was the support provided to the Ca- concert held in the Teatro Mayor Julio Mario Importance for parties • This project is in line with the Group’s overall responsibility policies, strengthening mentsá community in San Francisco, and the In- Santo Domingo Theater. relations in the neighborhood and the development of communities in the area of gas in Santiago and San Andres, in Sibundoy • Logistical support for the “Eco-hackathon” influence. Valley, Putumayo, to help members carry out the event held at the Botanical Garden. • In the community, it generated business opportunities and improved the quality of life of 87 families in the region.

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Life-saving water heaters in Bogotá Establishing systems for coffee production using sustainable practices under the concept of a sustainable integrated farm in the municipalities of Gacheta, Ubalá, Zone B, Medina, Gachalá and Montecristo, Allies Gas Natural belonging to the jurisdiction of Corpoguavio, in the Department of Cundinamarca

Percentage invested by the GEB Founda- 50% Allies Corpoguavio, National Federation of Coffee-Growers tion Percentage invested 29% 11.587 clients had water heaters installed and inpected in the period from 2010 to by the GEB Founda- Project achievements 2014. tion

Project achievements • 77 producers benefited: 24 in Gachetá, 16 in Ubalá Zone B, 10 in Gachalá, 8 in • It is in accordance with the policies of global responsibility, and is relevant to busi- Ubalá, and 19 in Medina. ness. • 64.1 hectares planted with 7,061 seedlings, which corresponds to an implementa- Importance • For the 11,000 families benefiting from the project, the social return was reflected tion rate of 98.7% compared to the planned 65 hectares. for parties in substitution of more efficient heaters that mitigate risk and reduce emissions of • Construction of 71 drying yards (parabolic systems): 21 in Gachetá, 10 in Ubalá carbon monoxide. Zone B in Ubalá 10, 10 in Medina and 20 in Gachalá. • Delivery 8 of ecological stoves and fire-wood areas: 4 in Medina and 4 in Ubalá area B. Delivery of 300 Yopo tree species (a species native to Medina) per beneficiary for fire-wood areas, giving a total of 2,400 delivered plants. • Installation of 10 sets of wastewater treatment, reducing the impact of wastewater from washing coffee. • Es importante para el GEB acompañar la ejecución de programas y proyectos de • 6 social business development workshops related to the project were held (3 in desarrollo sostenible en sus áreas de influencia. Importancia para las Gachetá, 1 in Ubalá, 1 in Ubalá B and 1 in Medina). • Para las familias beneficiadas, el retorno social se ve reflejado en la posibilidad de partes • 79 group events to strengthen community organization and implementation of mejorar sus ingresos, y en el hecho de estar mejor capacitados en temas contables good agricultural practices in coffee agroforestry systems were held (includes y productivos. tours, demonstration methods, courses, field days and meetings). • 5-hectare forest block system that benefited nine farmers: 6 in Medina, 2 in Ubalá B and 1 in Gachetá. 6,390 seedlings were delivered. • Establishment of 3,000 linear feet of living fences, which benefited 16 farmers (10 in Gachalá, 3 in Gachetá, and 2 in Ubalá). • Installation of 6 mechanical drying systems (2 in Ubalá, 2 in Medina, 1 in Gachalá and 1 in Gachetá). • Training for 262 farms to obtain the 4C Seal (Common Code for the Coffee Com- munity). (29 in Gachalá, 151 in Gachetá, 32 in Ubalá B, and 50 in Medina).

Importance • It is important for the Group to participate in the construction of social assets. It for parties is also key to be present during the implementation of social development projects in areas of influence, focusing on the most relevant features of the areas where communities are located. • Communities improve their quality of life, exploit their full potential and dignify their quality of life by installing green stoves. Also, there was a reduction of the impact caused natural vegetation, thanks to fire-wood areas. Finally, thanks to the training and infrastructure received, the quality and competitiveness of the community’s coffee increased.

168 169 Commitment 4: 1 2 Improve quality of life of the 3 EEB Sustainable Management Report 2014 communities where the Company operates

Strengthening of vegetable gardens in Chorrillo, Muesas and Guespud del Municipality of Aldana, Nariño

Allies Municipality of Aldana

Percentage invested by the GEB Founda- 86% tion

Project • 25 beneficiary families. achievements • Training in producing clean crops, in order to incentivize the protection and conservation of the environment, and reduce the use of agrochemicals. • Production of healthy crops and of excellent quality for human consumption. • Promotion of native crops, using seeds from the region. • Employment opportunities and generating resources for the beneficiary families, through the production of their products. • Growth of a culture of entrepreneurship culture with small producers to improve the productivity and competitiveness. • Decrease in production costs. • Contribution to the Millennium Development Goals, regarding the eradication of ex- treme poverty: the project has contributed to reducing hunger and allowed revenue generation in low-income communities • Generation of productive employment and decent work. • Development of organic fertilizers with kitchen waste and crops. • The production of organic insecticides. • Soil preparation for planting native plants and seedlings of vegetables and fruit. • Improvement in production, with the selection of good quality seed, organization and site preparation. • Efficient use in solid waste management harvest to prevent the spread of pests and disease. Strengthening the municipal nursery in the Municipality of Funes, Nariño, to promote the diversity of • Improving the image of the Foundation and the Group held by the communities and production systems and improving the agricultural sector leaders in the area. Allies Municipality of Funes, Nariño

Percentage invested by the GEB Foundation 38%

Logros del proyecto 370 families from the greater are of Funes Municipality, Importance • Such projects facilitate and strengthen the relationship with communities and Nariño, were benefited:80 from Guapuscal Bajo, 160 for parties authorities, through dialog and active participation in the development of sustainable and productive social projects. families from Alto Guapuscal, 70 families from Vega and • To the beneficiary families in the Municipality of Aldana, the project allowed 60 families from Terrero. them to improve their quality of life, generate decent employment and organize and plan the orchards, without wasting physical spaces and making better use of Importance for parties It consolidated the relationship with the communities natural resources. and authorities through dialog and active participation in the development of sustainable social projects. This improved their quality of life and ensuring their basic rights, while promoting the diversity of production systems and improving the agricultural sector.

170 171 Commitment 4: 1 2 Improve quality of life of the 3 EEB Sustainable Management Report 2014 communities where the Company operates

6.2 management of community ˕˕ how do we assess it? relations Management is evaluated through the following indica- ˕˕ WHY IS IT IMPORTANT? tors, used to measure the efficiency and effectiveness of the management of socio-economic component of ˦˦ Implement the Education, Innova- ˦˦ Eighteen Volunteer Community Often the perception held by communities of infrastruc- project development: CHALLENGES tion, Science and Technology Pro- Benefit Projects were approved by ture projects is distorted and contrary to reality. This gram in GEB’s areas of influence, the Governing Council. can rejection of and malaise toward the Company’s ˦˦ Response to requests from stakeholders. Social Investment in communities providing teaching materials and ˦˦ Continue to forge alliances with lo- projects and representatives and is why maintaining ˦˦ Induction and training for staff involved in the proj- where the company training for children in science, cal, regional, national and / or in- good relations with communities is of key importance ect. operates technology and innovation in the ternational organizations that will for the Group: it helps build trust and enduring rela- ˦˦ Information and education workshops given to area of influence. increase the benefits provided by tionships, all the while promoting the harmonious co- communities in the area of direct influence. ˦˦ Strengthen relationships with GEB the productive projects support- existence between the Company and communities. ˦˦ Delivery of project information leaflets. in their programs of social manage- ed by the Foundation, to strength- The relationship with communities allows us to ˦˦ Frequency of delivery of project newsletters. ment. en their capacity, sustainability and carry out projects with direct communication, that ˦˦ Continue to support productive development. are transparent, timely, effective and consistent with In Colombia, the Plan for the Expansion of the Na- projects in accordance with the cul- ˦˦ Support the improvement of the both corporate values and the uses and customs tional Transmission System is regulated by the gov- tural vision of indigenous peoples in conditions of schools in the catch- of the communities in different regions. Communi- ernment through the Ministry of Mines and Energy: the communities in the area of in- ment area with access to energy ty relations are intended to provide clarity regard- the environmental planning and management of se- fluence. EEB implement a project to (solar cells) and water (filter) un- ing projects and their scope, identify and assess lected projects in the Expansion Plan occur in ac- strengthen cultural identity through der the Basic Services for Basic Ed- impacts, and reflect on management measures to cordance with environmental regulations (Law 99 chagras (a traditional, indigenous ucation Program. prevent, correct, mitigate, compensate or strength- of 1993 and Decree 2820 of 2010), which provides agricultural unit) and other spaces ˦˦ Develop a project with a productive en them. guidelines for minimum public participation involving to improve food security in the in- and social approach with communi- Analysis of Environmental Alternatives and Evalua- digenous community of Santiago, ties in the rural area of Bogotá that ˕˕ how do we do it? tion of the Environmental Impact Study. Additionally, Department of Putumayo. Likewise, are part of the area of influence of communities have mechanisms such as the Environ- a craft project will be supported in the EEB’s infrastructure. The EEB constantly engages with communities through mental Public Hearing for citizen participation and San Francisco, Department of Pu- community action boards; Municipal and Departmen- conflict resolution. tumayo. tal Government authorities; indigenous authorities; The Company conducts impact assessments based military and police authorities; The Prior Consultation on the activities of the UPME projects making use of area of the Ministry of the Interior; Ministry of Culture participatory processes associated with the Environ- in relation to cultural heritage and archeology; atten- ment Management Plan. Assessment and monitor- tion to rights of petition; requirements of the National ing of the environmental impact of this Plan as well Environmental Authority Licenses (ANLA) for environ- as management measures during the construction mental licensing; Proceedings of socialization of proj- phase of projects. Evaluation results become visible ects; and reception and care of requests processed through environmental licenses, information book- stakeholders in the PAC or through the social manag- lets on the Environmental Management Plan (UPME er in the field. 02-2009) and environmental records.

172 173 174 ˦ ˦ ˦ ˦ ˦ activities included: with theparticipationofethnicgroupsinvolved; knowledge toanalyze thefeasibility oftheproject communities, seeking to establish a dialog based on the indigenous with tools educational established ities of the project. To this end, the Company applied efforts on presentingthevarious its focused all activ Indigenous Reservation, Las Mercedes), the EEB Within the prior consultation scenario (the Nasa Prior ConsultationRelations ˦ ˦ ˦ ˦ ˦ to have harmony with the páramo spirits, with Religious rituals in the Meridiano Páramo, Tolima, electrical infrastructure projects. Booklet for communities giving an overview of the phasesofconsultation are described. construction stagesof theproject,scopeand the describing identification, impact on Booklet indigenous and peasant territories. tin projectimplemented fromadifferent perience ex testimonial of video andanalysis Presentation by the project during its different phases. community or ethnic group that may be affected Spoken maps to identify places of interest for the EEB Sustainable ManagementReport The installment of the pri installment The cedes (Herrera,Tolima). Las Mer- Reservation, Indian or consultation process, Nasa 2014 - - cio-cultural impacts. ment measures for the páramo to the mitigate so- the traditional doctorsprofferedalternative manage- nity and positive and negative impacts. Furthermore, own perspective, the characteristics of the commu- On the one hand, they identified, in the light of their territory, communities participated in different ways. During theworkofgatheringbaseline information ˦ ty action boards.In2014,mailboxes wereinstalledin tatives, police inspectors and presidents of communi - initiative has brought EEB closer to municipal represen ca, which are part of the so-called Central Corridor. This Sopo and La Calera, in the Department of Cundinamar ities of Gachalá, Ubalá, Gachetá, Guatavita, Guasca, This initiative in is being the implemented municipal Stakeholders System forRequestsmadeby ˦ of Valle delCauca. the periences with Nasa Kwes ReservationKiwe Spiritual Tour of thepáramo andexchange ofex nous communities. traditional doctorsandothermembersofindige- - partment ofTolima. the Reservation Las Mercedes, in the De People, theNasaIndigenous with project tion process for the Thessaly - Alférez tographic archive of the prior consulta- pho- arepartoftheEEB’s These images - - - - -

G4 - SO11 workshop in February 2015. ter, while the latter willbe addressed in a community let by to replied was first The received. were quest the initiative. An individual as well as a collective re plus twenty community action board presidents about avita), inspectors Mámbita and police Montecristo, two municipal representatives (Gachetá and Guat the five boxes installed in 2013. alá Sector B) and Montecristo (Gachalá), in addition to Gachetá as well as in police inspections in Mámbita (Ub- requests made by stakeholders in the Municipality of of attention the for office Ombudsman’s Municipal the ˕ ˦ ˦ sures, talkingmaps. Identification ˦ ˦ ˕ During year, weheldinformation sessionswith secretaries office) and public servants (Councilors, (Councilors, servants public and office) secretaries mayors, (governors, officials public authorities, rial Overtures and informative meetingswithministe- tional civilandecclesiasticalauthorities. meetings on projects with local, provincial and na and organized information, holding explanatory The Company made overtures with communities What didwedo2014?

of 1

impacts

and 2

management

mea - - - - - operates communities wheretheCompany Improve quality oflifethe Commitment 4: ˦ ˦ ˦ ˦ ˦ ˦ ˦ ˦ nicipalities). lic and members of the Colombian Federation of Mu Representatives totheHouse,SenateofRepub- Emgesa, Codensa, Aguas delHuila). progressed inter-enterprisein (Hocol, relations and Chambers of Commerce in the project) and ic associations (Camacol, Committee of Coffee econom- regional with The held discussions EEB were organized. endangered speciesand relocationofepiphytes tive equipment (PPE), as well as the protection ior in work areas, proper use of personal protec transmission linesandcommunities,safebehav the need for good practices of conduct around Training days were organized for employees on proper managementof solid waste. and fields, electromagnetic sidewalk, the or region ture, andenvironmental tothe ofimportance issues aspects of coexistence with the electrical infrastruc certain concerning Influence Direct of Area the in Training sessions were organized with communities on the progress of projects and works in progress. Informative newsletters targeted at communities Council agement measures.

of elders, identification of man - 3 175 - - - - Commitment 4: 1 2 Improve quality of life of the 3 EEB Sustainable Management Report 2014 communities where the Company operates

˦˦ Photographs were taken of the construction pro- authorities; ANLA resolutions granting the envi- cess of interconnection projects, testimonial vid- ronmental license and removing prohibitions; pro- eos of indigenous and peasant communities and cedure and format for the reception and attention local authorities to record and explain about the to requests made by stakeholders in the Area of RETOS ˦˦ Socializar el Sistema de ˦˦ Socializar para el 2016 al 70% experience of living with the EEB’s electrical infra- Direct Influence; chart of the Company’s envi- Atención de Solicitudes de de las comunidades del AID Gestión de relaciones structure projects. ronmental management structure; organizational con la comunidad Grupos de Interés, con el 90% durante la elaboración del EIA ˦˦ For projects under construction, environmental chart of control and monitoring of environmental de los Presidentes de Juntas del proyecto Sogamoso (UPME records (2009, Thessaly-Altamira and UPME 02- compliance in the construction of infrastructure de Acción Comunal que hacen 01-2013). 2009, Armenia UPME 05) were delivered to the projects; and installation of bulletin boards in the parte del área de influencia del Town Halls and the community action boards. Points of Citizen (PAC) with relevant information Corredor Central. These reports contained statements made by about the project and its progress.

6.3 COMMUNITIES’ COEXISTENCE which is led by the GEB Foundation. Additionally, WITH infrastructurE from the Vice-Presidency of Transmission and HSE Management implement actions that match the ˕˕ why is it important? components of social management of environmental management plans. The passage of the transmission infrastructure high In 2014, management focused on the analysis of voltage power transforms not only the landscape the communications received by people living in the but also how communities relate to their environ- vicinity of power transmission infrastructure belong- ment. Different settlements adapt differently to ex- ing to EEB. As communities perceive impacts main- isting and operating infrastructure so the EEB should ly due to easements, the analysis tends to deal with give permanent support to communities for them legal and property matters, generating sufficient ele- to interact safely with transmission lines and pre- ments to deliver the most relevant answers to stake- vent accidents. holders.

˕˕ how do we do it? ˕˕ HOW DO WE ASSESS IT?

To manage the coexistence of communities with The Company monitors its own series of indicators to infrastructure, the Company uses AST-P-GS-002 as part facilitate the evaluation of its work on these issues, of its Social Policy and Social Management procedure, including:

176 177 178 EEB Sustainable ManagementReport 2014

G4 - SO11 Table 16.Indicatorsofthefollow-up oftheAttention System forStakeholder Requests ˕ ported totheGeneral reportedtoini also Secretariat Ministry ofMinesandEnergy. These cases werere- tions. These are issued byregulations, national the by the Technical Regulations - for Installa Electrical ment areas of power transmission, which is prohibited eleven cases of development of construction in ease Transmission, tomeet communicationswereissued Maintenance, an area within the Vice-Presidency of regulations. were managed withinthe timeframe established by areas closetopowertransmission lines. Responses private entities interested in implementingactions fected by its infrastructure as well as from public and munications received from of inhabitants the areas af Throughout 2014, the Company responded to com- Response toCommunications invasion ofeasements Number ofmanagedcases infrastructure in theareasofinfluenceEEB responded tolocalstakeholders Number ofcommunications for Stakeholder Requests informed oftheAttention System Percentage oflocalstakeholders ˕ Moreover, in coordination with the Management of WHAT DIDWEDO2014? Indicator 1 2 the Vice-PresidencyofTransmission andtheHSE. corresponding to100%ofthecaseseasementinvasion reportedto the HSEmanagement.Ten casesweremanagedataninternallevel, 100% ofthecasesreportedtoVice-PresidencyTransmission and Eleven casesweremanagedatanexternal level, correspondingto 100% ofcommunications. 77 communicationsreceived in2014wereanswered,equivalent to villages oftheCentral Corridor. ned to23presidentsofcommunity actionboards,representing50%of Stakeholder Requests fortheCentral Corridor. Theinitiative was explai level andinformthemabouttheusescopeofAttention System for 2 policeinspectors,toreach100%ofinstitutionalactorsatthelocal Information sessionswereheldwith2municipalrepresentatives and - - - operates communities wheretheCompany Improve quality oflifethe Commitment 4: ciliation process counted on the participation of the agreements through dialog. In its final phase, the con- as the parties didnotresorttocourts, butreached highlighted the Company’s attitude of conciliation, that was several years long,inwhichlocalresident sion lineofelectricity. move it to a area that was further from the transmis- the ownerofaproperty todemolishtheirhouseand gotá System), wherethe EBBmadeapayment to da, Cundinamarca (infrastructure referred to as Bo- The case tookplace inthe Municipality of Grana eas ofeasementforEEBinfrastructure. gota to control the issuance of building permits in ar was supplied to the Municipal License Bureaus of Bo tiate appropriate legal action. Finally, key information located inaneasement Agreement forthewithdrawalofahouse This case was theresultof a negotiation process Result 2014

- 3 179 - - - Commitment 4: 1 2 Improve quality of life of the 3 EEB Sustainable Management Report 2014 communities where the Company operates

Municipal Attorney, and agreements made under the was an intervention process of a property located Teatro a la Vereda parameters established by the Law and the Compa- under the easement of power transmission lines be- ny’s own guidelines. longing to EEB. The result was a local commitment Project 8,707 spectators benefited, thanks to the 43 functions that were performed not to take part activities that break the law, thus, achievements in the villages of the area of influence of the Group’s subsidiaries: there the Processes involving Communities in avoiding endangering the safety of the surround- community was made aware of environmental issues, care for the infrastruc- Bogotá ing community. ture and networks, risk control and energy for development.

In order to prevent unauthorized uses within the ar- Interaction with the Grupo Energía de eas of power transmission easement, EEB made ap- Bogotá Foundation Importance for The completion of this work is important to the GEB, as it allows com- parties munities to understand, identify, prevent and mitigate risks against infras- proaches with community leaders from the villages tructure through alternative media and entertainment. of Mochuelo Alto and Quiba, Guabal sector and the In addition to the eight meetings to follow up activ- For the beneficiary community, it was important because it allowed com- rural area of Ciudad Bolívar, in Bogota. In the first ities that took place in 2014, the GEB Foundations munity members to gain knowledge regarding the care of the infrastructure within atmosphere of integration with an activity that was highly formative case, the Company identified participatory use alter- contribution to educating communities about coexis- entertainment. natives of a property belonging to the Company lo- tence with the electrical infrastructure was particular- cated in the village, while in the second case, there ly important. Two activities were carried out:

Delivery of educational material about gas and electrical infrastructure*

Project achievements • We distributed 50,885 teaching materials, of which 36,288 were delivered to the beneficiaries in the area of EEB and UPME projects, 14,597 books were delivered CHALLENGES to TGI for distribution by social managers. Respond to 100% of pertinent communications that EEB re- Communities’ • The educational play materials consisted of: booklets, books, school kits, re- coexistence with ceives by the different communication channels from the op- newable energy kit, capes, colors and balloons. Infrastructure erating corridors. • This material covered: care for the environment and the electrical and gas infrastructure to prevent electrical and gas hazards, safety guidelines, warning signs and rules of behavior required in areas close to the transmission of energy and gas.

Importance for parties • The delivery of this material is critical for GEB, allowing communities to identify, prevent and mitigate the risks facing the infrastructure. • For the child beneficiaries, this material is important because, in addition to everything they need to do for their education, they learn about the importance of energy towers and gas pipes, and what care they should have are, in order to prevent accidents.

*The Project was not included within the limited assurance, undertaken by PwC.

180 181 Commitment 4: 1 2 Improve quality of life of the 3 EEB Sustainable Management Report 2014 communities where the Company operates

Premio Fabio Chaparro Cocoa Production Project Eco-hackathon

“I thank the Grupo Energía de Bogotá Foundation for “The truth is we are grateful, because this project “For Energy Cube, participating in the Eco-hackathon the honor to represent my fellow jury members at is an incentive that new generations have, peo- was the opportunity to meet around a mobile applica- the 8th Fabio Chaparro Award. The goal is to share ple have come from schools and colleges to cocoa tion, to rethink the city and how the citizens of Bogo- with you some thoughts about the mission of the cultivation, they are interested in taking, the ex- ta relate to it with its physicality, its environment and Testimonies about Foundation to support the Grupo Energía de Bogotá ample that is taking place in cocoa production in the technology the city offers. The philosophy of En- to identify, build and implement programs, projects five or ten years. We hope we continue to work so ergy Cube inspired us and the individual commitment the Foundation’s and actions potentializing its ability to promote so- you do not miss what we have build up to today”. of each of the four women in the group enabled the cial development through energy, through the pro- almost magical flowof possibilities and ways of work- management jection and appropriation of the results of research Marco Vacca ing very harmoniously, each in their role (design, pro- continuously being performed by university groups.” Cocoa Producer, San Roque gramming, create strategy, run), each committed without pressure within such an inspiring and motivat- Horacio Torres First Dialogo on Energy and Development ing space like the Bogota Botanical Garden. We were Emeritus Professor, National University of Colombia touched by the outcome and believe that this country The efforts we made in the day-to-day activities Creator and Jury Member of the Grupo Energía de Bogotá “The energy and sustainable development dialogs needs spaces like the Eco-hackathon, where creativ- involve many different people who act in different – Fabio Chaparro Prize are an area of great relevance to provide a level of ity and innovation take ownership of our knowledge. ways. We want to present their comments about our stringency to the debate associated with the im- work in 2014: portance of energy for the economic and social de- Participants: Camila Gaitán, Janina Mank, “I want to give special thanks to the Grupo Energía velopment of a country like Colombia debate. The Angélica Virgüez, Alejandra Aguirre. Volunteer de Bogotá Foundation for the recognition of receiving economic dynamics are directly associated with Energy Cube first place in the undergraduate category last Novem- the dynamics of energy consumption; and its dis- “For me, the most important part of a company is ber 28, 2014. tribution and access are a way to give quality of that you can really achieve integral growth as a per- This award is a recognition of my graduation proj- life, while they are a requirement for the econom- son. We learn and grow and professionally thanks ect and all the effort I made throughout my under- ic and social development of communities. It is in to the challenges we face every day carrying out graduate studies. It is a source of pride for those close this way that one can directly link these two pat- our functions, but what complements the value that to me, the institutions where I have studied passed terns. we acquired as professionals is the opportunity to and for my region. Thus, power consumption is an indica- grow as human beings. Each of the activities that From the various interventions on the date of tor of development. We need more devel- the foundation gives us the opportunity to develop award, I managed to retrieve an important message: opment in a context of responsibility and this dimension, which is often not valued enough in we must not forget the commitment we have as pro- sustainability, understanding that sustainabil- the workplace. As a former boss used to say, ‘you fessionals in the energy sector towards social devel- ity does not mean eating less or lowering the are as good a professional as you are as a person opment, in our quest for sustainable development and standard of living, rather consumption is asso- ...’ Greetings and thank you!” our commitment to the environment”. ciated with an effective and productive activity Juan Felipe Chaves that results in quality of life and development”. Liliana Rocío Rivera Gómez Electrical Engineer, Los Andes University Supply Management Advisor Winner in the undergraduate category of the 8th Grupo Eduardo Behrentz Volunteer of the “Uno Más” Program Energía de Bogotá – Fabio Chaparro Prize. Dean, Faculty of Engineering, Los Andes University.

182 183 Commitment 4: 1 2 Improve quality of life of the 3 EEB Sustainable Management Report 2014 communities where the Company operates

Support for indigenous communities Voluntary Projects for Community Benefit “[We want to] thank the Grupo Energía de Bogotá and “Through our foundation, the the Empresa de Energía the GEB Foundation for the connection that it has had de Bogotá, we are carrying out community benefit with the different activities we have carried out within projects to improve the lives of people who are part the indigenous Inga – Camentsá community council of the communities where our transmission lines are in the Municipality of San Francisco, Putumayo. These located. How do wedo it? By supporting the improve- activites have included the Indigenous Day of Carnival ment of homes, schools and buildings for community and the Day of the Dead: it is the only company that use. We go to the intervention site, we hear requests, has been aware for indigenous communities”. give technical advice and accompany processes. We believe this is the way of acting responsibly and with Segundo Chimdoy a social conscience: this is how development occurs”. Gobernor of the Indigenous Cabildo Indígena for the period 2014

Carlos E. Varón EV Arquitectos LTDA

‘Recyclathon’ “I, Horacio Cardenas Market, Legal representative Arambiental and Reciclatón ex officio, state that I am Funes-Nariño Agroforestry Nursery Project grateful to the Grupo Energía de Bogotá Foundation for the principle of opportunity that it gave to our or- “[I want] to thank the GEB Foundation, who, with ganization, for not only making us visible within the great affection and love for the countryside and cof- context of Bogotá but also within District entities. fee production, has been of such support to us, and The importance of this procurement project by Ar- has been of great benefit to farmers. Thanks to this ambiental and the Foundation has meant giving an company and this project, we managed to grow our opportunity to many of my fellow recyclers around coffee trees, we received goods, we have started to Bogotá. They were able to join us and carry out the produce. Thanks to this, I think the situation for us transport process, collection, separation and sale of peasants will change. recycled material, dynamic that was important to them and to me. Thank you.” We remain steadfast in this process: coffee is the future of the Municipality of Funes”. Sincerely, Horacio Cárdenas Mercado Legal Representative of Arambiental Luis Alfredo Ortiz Beneficiariy, San Miguel-Funes

184 185 Commitment 5: 1 2 3 Be a great place to work

7. Be a great place to work

The goal of the Empresa de Energía de Bogotá is to attract and retain the best talent and develop it by offering opportunities for growth, optimal working conditions and benefits, generating welfare for its employees and better results for the Company.

Model of Human Resource Management by Competences

By the end of 2014, a Model of Human Resource Man- agement by Competences was organized for all of the Group’s companies; it will be the navigation path for the development of actions focused on the Company’s employees. This model focuses on the workers them- selves and highlights their life plans as a main pillar for their own development. Twelve corporate guidelines were established that are focused on talent management unifying concepts between subsidiaries, facilitating communication and their interaction with the Group. Commitment 5 For more information about human management and health and safety in the workplace, please see: http://www.eeb.com.co/index.php/gestion-humana

187 Commitment 5: 1 2 3 EEB Sustainable Management Report 2014 Be a great place to work

7.1 ATTRACTING AND RETAINING THE HUMAN with stability and possibilities of internal mobility. t – Knowledge of M men ana At the end of 2014, EEB had a permanent staff of iron gem nv en k E t WHY IS IT IMPORTANT? 326 employees, of which 217 of these have indef- or ˕˕ W inite-term contracts while 109 have fixed-term. At EEB, we understand that all achievements are made During the year, 102 employees were hired, 37 of due to the efforts of our human talent. Therefore, we them with indefinite-term contracts and 65 with seek to attract and retain the best talent in the industry Fixed-term contracts. 1 2 Management of with a sense of belonging, the capitalization of knowl- ˦˦ Economic benefits, welfare and development are Selection by process and labor edge, stability in both policies and mission processes, all offered to all employees as a tool for attract- Competences relations while avoiding staff turnover, which causes instability, ing and retaining human talent; these include economic costs, loss of time, a knowledge drain and loans for graduate study (graduate diplomas or negatively affects of the mood of employees. There- master’s degrees) for them to obtain the exper- fore, it is critical for EEB for our staff to feel satisfied tise they require to perform their functions, ful- with their work, find opportunities for growth and want filling the conditions laid down in the guidelines Motivated 6 workers who 3 to be part of our team, helping to fulfill all of our stra- for performance management. Management of Management of permanently evolve development tegic objectives. ˦˦ Additionally, we acknowledge our employees’ ef- performance and are at harmony and human fort and commitment by giving them an annu- in their family and and profession work lifes ˕˕ HOW DID WE DO IT? al bonus that does not constitute salary, based Our workers’ development life projects Consolidation of on the performance and achievement of objec- Group the Group’s vision ˦˦ In line with the growth and expansion of GEB tives per corporate guidelines. This is authorized Strategy Our workers’ Group and its subsidiaries, transmission project by the Company’s Board of Directors; it exceed- Quality of Life 5 4 employees have permanent links to provide them ed 2900 million pesos (USD 2.9 billion) in 2014. Welfare and Management of Benefits compensation

Fixed-term Indefinite-term GA-LA1 Year Total O r ga l Men Women Men Women n de iz o at m io ip na h l c ers ultu ead re – s – L 2013 38 18 132 82 270 Corporative value

2014 63 46 138 79 326

Figure 20. Model of Human Resource Management by Competences Table 17. Total Workers by contract type and gender

188 189 Commitment 5: 1 2 3 EEB Sustainable Management Report 2014 Be a great place to work

Men Women Men Women Age (indefinite) (indefinite) (fixed) (fixed)

18 to 35 years 63 34 41 36

36 to 50 years 51 36 18 10

51 to 65 years 24 9 4 0

Table 18. Workers by age (2014)

2013 2014 Description Men Women Total Men Women Total

New hires 78 55 133 51 51 102

Terminated employees 6 9 15 4 11 15

Voluntary retirees * 12 4 16 10 8 18

Retirees due to 2 2 4 2 1 3 contract termination

Below is a detailed description of the composition strengthen their skills, so that they can continuously Table 19. Rotación de personal of staff: improve their performance and contribute positively * En el 2014 se pensionó un colaborador (hombre), el cual se incluye dentro de la categoría de retiros voluntarios. to achieving the organization’s goals. 7.2 development of human talent ˕˕ HOW DO WE DO IT?

2013 2014 ˕˕ WHY IS IT IMPORTANT? LThe management of human and professional development provided in the Company’s Development 12,62% 13,82% We encourage the individual, collective and orga- Model seeks to promote high performance teams, nizational development of our employees, in order improve the conditions of working life and increase Table 20. Staff Turnover* Index for staff with Indefinite Term contracts. to contribute to sustainability and corporate growth the level of employee satisfaction, based on a cul- * This turnover includes: voluntary retirement, pension arrangements and layoffs. is encouraged. For us at EEB, it is important to ture built with trust as well as the integration of stra-

190 191 Commitment 5: 1 2 3 EEB Sustainable Management Report 2014 Be a great place to work

Classification by compliance with targets

Unsatisfactory Satisfactory Outstanding Extraordinary G4 - LA11 Contract type % Total of # of workers 0-79 % of workers 80-100 % of workers 101-110 % of workers 111-120 % of workers compliance

Fixed-term 52 96% 2 3,8% 1 1,9% 17 32,6% 32 61,5%

Indefini- 191 100% 0 0 3 1% 52 27,2% 136 71,20% te-term

Table 21. Classification by compliance with targets.

tegic objectives with personal development goals. electricity sector; conducted (1) a diploma in senior ˦˦ Implementing the model of human encourage their growth, sustainability Similarly, the Company has a leadership model that management; and (14) fourteen seminars. CHALLENGES and organizational development in and competitiveness. Relevant factors identifies the level of development for each employ- Innovation in business the Group’s subsidiaries (2015-2017). such as employees’ family environ- management and the ee through the assessment of their competences. ˦˦ The measurement of the achievement of individ- Such a model will leverage the change ment as well as their personal and energy sector Also worth mention is the annual training program ual objectives was 100% for the 243 employees in management, organizational cul- professional life projects in order to which includes updating and strengthening of tech- who qualified for the definition of objectives. Each ture and innovation, and seeks to strengthen their very quality of life as nical and managerial skills, and specialized training. worker was evaluated and was given feedback and align the knowledge, skills and com- well as that of their families. This program is based on the results of the assess- improvement plans to strengthen his or her competencies of people with positions and ˦˦ Establish plans for succession and ment of competencies. petences concerning the Company’s strategic ob- processes. The aim is to put the right career within its development mod- During 2014, the participation and assistance of jectives. Staff receive recognition in the form of person in the right place according to el (2015-2017) using the criteria de- the Management of Human Resources in different a bonus that is not part of their salary based on their skills and project requirements; fined by the organization, as well as training programs were encouraged to allow staff to the results of their evaluations in accordance with as well as providing instruments for a employees’ high potential and perfor- perform and select the best training plan in accor- the level of achievement of the objectives were cultural change in the organization as mance. These plans are established dance with the responsibilities of each position. In awarded. well as for its very sustainability, thus according to the study of critical po- addition, as part of the evaluation of the content of ensuring the successful implementa- sitions and future leaders, which will the training courses, the real-life application of course 7.3 WORK ENVIRONMENT AND tion of our employees’ objectives in be defined at the organizational level content was included. EMPLOYEE WELFARE line with corporate strategy. and brought into line with the afore- ˦˦ Make use of virtual learning programs mentioned plans. ˕˕ WHAT DID WE DO 2014? ˕˕ WHY IS IT IMPORTANT? are easily accessible and available to ˦˦ Automate and optimize process per- employees in order to implement ef- formance management and devel- ˦˦ The Company organized (17) seventeen workshops The welfare of our employees and the working envi- fective development plans. opment (2015-2016) in the Cloud on topics of international contracts, conflict negoti- ronment are essential to achieve fulfill the Company’s ˦˦ Implement the strategic manage- platform, and undertake monitoring ation and audits; participated in (5) five congress- strategic objectives and for it to develop t. In a suit- ment model of human talent in the and control of management results. es on auditing, public service companies and the able work environment, employees are more efficient Group’s subsidiaries systematically to

192 193 Commitment 5: 1 2 3 EEB Sustainable Management Report 2014 Be a great place to work

and committed to their work. For this reason, we want ˕˕ WHAT DID WE DO 2014? to build a great workplace that offers the everything s W ue o our employees need to facilitate their development ˦˦ The EEB applied the results of the study of posi- al rk v e e n iv v as individuals, and give them an incentive to do their tions and salaries carried out per the addendum t ir a o r n o m best and improve constantly, helped by the provision to the collective labor agreement signed in 2011, p r e

o n of a healthy, harmonious space. making the appropriate adjustments for reclas- C t

sifications, naming update positions and adjust- C

HOW DO WE DO IT? ments for appropriate salaries. As a result of this o

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process, four workers were reclassified to a high- r

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Undertaking an annual measurement of the workplace er level and 40 received wage adjustment of a e

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is relevant to building trust and consolidating corpo- total of 48 workers pertaining to the collective p

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c e rate culture. The results enable us to identify employ- labor agreement in 2014. s ees’ perception of leadership style, interpersonal and ˦˦ The strategic model of Human Resources included group relationships and the organization’s practices to as key elements such as corporate values, lead- establish policies and guidelines in order to achieve a ership model, the relevant aspects of measuring favorable working environment in all its dimensions. workplace, corporate powers and the concept of Figure 21. Key elements included in the model of human management. Through survey, credibility, respect, fairness, camara- corporate culture. This information was dissem- derie, pride, confidence and work environment index inated throughout the organization. • Group Meeting: All Group employees attend to • Communications Committee: Attended by those are all assessed to understand the impact of activities ˦˦ Workshops on performance objectives were held publicize key issues of corporate events, en- responsible for subsidiaries’ communications, this and changes in employees’ perceptions. for all of the Company’s employees in interdisci- couraging integration and a sense of belonging. committee is intended to monitor communication The Management of Human Resources, which is plinary groups, which highlighted the importance One (1) Group meeting was held during 2014. actions and make them relevant. Six (6) Commu- responsible for measuring the work environment, to- of the daily work of each individual and their im- • Manager Meeting: Aimed at promoting leader- nications Committees met during 2014. gether with the Department of External Relations, de- pact on the overall performance of the organi- ship, tracking strategic goals and challenges, signs intervention campaigns aimed at highlighting the zation. Games and improvisation were used as and encourage integration based on the best • Media Platform: Responsible for coordinating, positive results of the measurement, while generat- accelerated learning mechanisms, which generat- practices of each subsidiary. During 2014, this managing and monitoring the Group’s blogs, ing a message of change and implementing individu- ed recognition and sensitivity toward other peo- mechanism was focused on the Group’s inte- Entérate, and Entérate tv, which are intended al actions necessary for each worker to have pride in ple by teamwork. gration project. There were three (3) meetings to publicize projects, initiatives and promote the corporate identity. ˦˦ The company designed an internal strategic group of managers during 2014 with the participation digital culture within the Group; additionally, it The priority is the implementation of activities that plan group to strengthen the culture of communi- of the Headquarters’ Presidency Committee and manages the EEB and Group’s websites. promote employees’ integral development, which cation. This has three axes, as described below: Managers of all subsidiaries. should encompass human, family and social elements. • Leaders Committee: Attended by team lead- ˦˦ Brand: Responsible for the coordination, design and In that regard, the Human Resources Management • Dialog: Intended to strengthen the building ers from each subsidiary. It is an integration brand management Group, seeking its positioning, established the Super Bien or Super Good Program, of trust relationships with employees, align- mechanism that promotes firsthand awareness standardization and unity. which offers spaces for the recreation and growth of ment with business strategy, coordination of of relevant issues in the Group, promote coor- The Group has a standardized and updated brand employees and their immediate family in order to actions and strengthening the sense of be- dination and teamwork. It is carried out in each manual, which gives parameters for the management strengthen the integration of the work team and pro- longing, it is comprised of the following ac- subsidiary. Four Leaders Committee meetings and use of the brand, its colors and different applica- mote good environment among employees. tivities: were held during 2014. tions. Each subsidiary has and applies its own manual.

194 195 Commitment 5: 1 2 3 EEB Sustainable Management Report 2014 Be a great place to work

˦˦ Recreation vacations in June for 29 children of em- ˦˦ Free courses were offered in crafts, desserts and ployees. snacks for employees twice a year at both office sites ˦˦ Christmas Activity held at Maloka for children of of Bogotá (Calle 73 and Calle 61) with an average TGI and EEBs’ employees aged between 5 and 12 participation of 15 people at each venue. years, attended by 53 children. ˦˦ The Christmas Novena was held together with TGI ˦˦ Christmas presents for the children of employees staff. of 0-12 years, 150 in total. ˦˦ Christmas hampers were given to 340 EEB em- 2.7.4 Management of Knowledge ployees and 14 mini-hampers were given to cleaning and catering staff. ˕˕ Why is it important?

Internal Activities We are committed to incorporating the very best, world-class practices, as well as being at the forefront ˦˦ Relaxation programs: body massages were given processes to change and transform production; EEB every two weeks at both office sites of Bogotá (Cal- recognizes the importance of knowledge management The Súper Bien (Super Good) Program ˦˦ Preparation and fitness training for employees by le 73 and Calle 61) between February and Novem- as a concept of interest that cuts across throughout participation in different sports: five-a-side football ber, with an average monthly participation of 60 the organization, which highlights its impact on oper- Within the framework of this Program, COP (20 people), volleyball (8 people), bowling (10 peo- people (30 in each site). ations and people. 517,228,646 was spent for the following activities: ple), swimming (10 people), tennis field (15 people) golf (8 people), tejo (5 persons), minitejo (5 Celebration of Special Dates people) and athletics (4). ˦˦ Participation of employees in internal sports cham- ˦˦ Delivery of 320 small gifts on birthdays to all em- pionships: the EEB Mundialito had 17 participat- ployees with fixed or indefinite-term contracts, col- ing teams, totaling 170 people. Bowling: 15 teams lege interns and SENA apprentices. giving a total of 60 people. Table tennis: 20 par- RETOS ˦˦ Build and disclose corporate guide- focused on the work environment ˦˦ Women’s Day (109 women), Men’s Day (175 men) ticipants. Work Environment line on employee welfare and ben- and employee welfare. Mother’s Day (51 mothers) Father’s Day (67) and ˦˦ Participation of employees in the National Games of and Employee efits. ˦˦ Build and disclose corporate guide- Welfare professional days, celebrating: accountants, engi- the Electricity Sector held in Cali: 49 employees par- ˦˦ Carry out the measurement of the line for measuring organizational cli- neers, lawyers, graphic designers, and secretaries. ticipated in football, volleyball, bowling, swimming, organizational climate in the first half mate that allows us to align Group ˦˦ The celebration of the EEB’s Anniversary with all tennis, golf, golf, shuffleboard, minitejo and athlet- of the year 2015. companies in order to unify the mea- EEB and TGI employees and contractors.. ics. The Company won in golf, and obtained four ˦˦ Build a baseline to formulate an ac- surement indicators and deploy a set ˦˦ Year-end party with all of the Company’s employ- gold medals in swimming and two gold in athletics. tion plan for continuous improvement plan. ees and contractors. Activities for our employees and their families Sporting Activities ˦˦ Ecological Walk for employees and their families in ˦˦ Space for sharing the World Cup held in Brazil in which 15 employees and their families participat- 2014. ed, giving a total of 47 people.

196 197 Commitment 5: 1 2 3 EEB Sustainable Management Report 2014 Be a great place to work

˕˕ How do we do it? Knowledge management is the primary mechanism for managing workers’ experiences, information and The Department of Human Talent is assigned to head the know-how, ensuring the sustainability of not just entire Knowledge Management Process in consideration the Company itself but also of the services it proof the Company’s corporate vision, strategy, methodolo- vides, while creating added value and competitive gy, processes and business environment. It will establish advantages. We have identified it as the key to in- the macro strategy that will integrate activities from the creasing efficiency and achieving higher levels of different areas within the Company in regard to knowl- service and quality, standardization of processes, edge transfer and innovation, within a clearly defined reducing costs, sharing of experiences and the iden- framework that includes systems, policies, strategic ob- tification of elements that generate innovation. jectives, processes, programs and resources.

˦˦ Construir la Política Corporativa en la que se RETOS den los lineamientos y enfoque para el Modelo Gestión del de Gestión del Conocimiento del Grupo de En- conocimiento ergía de Bogotá. ˦˦ Con base en la Política y el Modelo de Gestión, construir y divulgar un lineamiento corporativo de Gestión del Conocimiento que permita alinear a las empresas del Grupo, unificar con- ceptos, garantizar prácticas organizacionales y mitigar riesgos. ˦˦ Crear un modelo de aprendizaje organizacional y de emprendimiento interno que permita acel- erar la gestión del conocimiento y desarrollar competencias de innovación.

198 199 Compromiso 6 1 2 Contar con una cadena de valor 3 sostenible

8. Having a sustainable value chain

The Empresa de Energía de Bogotá seeks to prevent and mitigate the environmental, social and employment impacts of relationships with third parties in the value chain and rea- lize development opportunities with partners and suppliers for their own growth as well as the growth of their company.

8.1 EFFICIENT CONTRACTUAL ˕˕ HOW DO WE DO IT? ProcesSEs The Supply Management establishes and promotes ˕˕ WHY IS IT IMPORTANT? best practices with suppliers and contractors to strengthen the contractual process. During 2014, this Ma- EEB has an extensive network of suppliers and nagement accompanied the Company’s procurement contractors, who are considered to be its strategic and contracting processes, promoting a great variety allies, as their performance influences the achieve- of vendors, process agility and transparency. ment of the Company’s objectives. In 2014, there Likewise, during the year, the Company internally was a compliance rate of 75% in terms of the re- optimized the process service orders, while redesigned quirements according to the Company’s annual pro- the contractual process, reducing activities from 120 Commitment 6 curement plan. For this reason, it is is essential to to 56, thus obtaining a 50% relative reduction and develop lasting and trusting relationships with the- greater efficiency in the contractual process. se stakeholders, which result in improvements in Moreover, the EBB generated learning spaces for efficiencies, profitability, and synergies, while crea- their suppliers in order to strengthen its supply chain. ting shared values. One was the ABC of Contracting, an initiative that is

201 Compromiso 6 1 2 Contar con una cadena de valor 3 EEB Informe de Gestión Sostenible 2014 sostenible

part of the relationship plan intended to strengthen mance, so that they can understand how to become the competitiveness of suppliers when they present a supplier or contractor and may consult the Com- tenders and train them in the Company’s internal pany’s annual plan for procurement and contrac- policies and billing processes. ting, among others. Additionally, we are working every day to strengthen relations with suppliers, for which relationship and The summary of visits to the Company’s supplier development strategies were developed, and clear, webpage is summarized below: effective and timely communication mechanisms were

established. Section Visits

˕˕ HOW DO WE MEASURE AND EVALUATE Call for tenders 12.150 IT? Contractual Framework for Action 4.080

Annual Procurement Plan and Con- Internal indicators used by the Company to measu- 2.434 tracting re time, savings and effectiveness of their contractual processes showed that the performance regarding re- Events for suppliers and contractors 402 cruitment of 2014 was 74.50%. How to be suppliers of the EEB 293 But other mechanisms, such as the Corporate Stra- tegic Plan (CPS) and the Integrated Management Sys- Tabla 22. The summary of visits to the Company’s supplier tem were also used to keep track of achievements webpage. and management when consolidating a sustainable supply chain, which is one of the Company’s commit- Conversations with potential suppliers ments. The management has been recognized by the Dow Jones Sustainability Index (DJSI), which rated These spaces are intend to generate direct communica- initiatives in which the Company participated. These curement processes. Likewise, providers could gain the Supply Chain at 86/93 in the category of Emer- tion with potential suppliers as well as transmit general newsletters were sent to about five hundred suppliers, answers for their questions and concerns regarding ging Markets, representing an increase of four points information about processes to register suppliers, bu- and 50% of whom actually read them. procurement objectives as part of a framework of suc- with reference to 2013, that is to say, the Company siness opportunities with the Company and interaction cessful and pluralistic processes. was rated 68% above the industry average. mechanisms that have been established for that pur- Ethics Channel pose. Twenty-nine suppliers have been invited, of these Business Mini-Rounds Communications Mechanisms with some have already participated in invitations to tender. This is the communication mechanism that permits suppliers and contractors the reporting of fraud, corruption and improper or These spaces fostered transparency in the procure- Online Bulletin illegal conduct. ment process, democratization of supply, as well as Portal of suppliers and contractors on the the identification identifying new suppliers for goods Company’s website This communication mechanism was designed to pro- Meetings for the clarification of technical scope and services critical to the Group and the consolida- vide information on topics of interest to suppliers and tion of the supply network. The business mini-round This channel allows the Company’s potential and cu- contractors. During 2014, we sent three newsletters In 2014, the meetings for the clarification of the te- for the procurement undertaken by Geotechnics in rrent providers to know about its calls for tenders, reporting the Company’s achievements, the results chnical scope of services required by the Company 2014, was a great success. It was attended by the events and the framework of contractual perfor- of activities with suppliers and notes on events and intensified, thus achieving greater efficiency in pro- EEB and TGI Vice-Presidency of Transmission, so that

202 203 Compromiso 6 1 2 Contar con una cadena de valor 3 EEB Informe de Gestión Sostenible 2014 sostenible

both entities have a space for direct dialogue with During the 2014, EEB evaluated 134 suppliers, The program is being carried out through sessions de- as the model of global responsibility, communication me- suppliers. Sixteen companies specializing in the re- whose rating is reflected in Figure 22. signed to provide support on issues of corporate go- chanisms and opportunities for participation from su- quested service attended. vernance; they are taught by the Bogotá Chamber of ppliers. It also included a workshop, which emphasized Strengthening Suppliers Commerce and services are complemented by EEB (con- the importance of sustainability in the supply chain, in Evaluation of Suppliers and Contractors tractual requirements, management systems, sustaina- good practices, as well as in the current business cha- From the second quarter of 2014, the Company be- bility, etc.). In this program, there are nine participating llenges and contributions of each to the sustainability of In 2014, the Supply Management implemented a tool for gan implementing its Strengthening Providers Pro- SMEs from different sectors, such as office furniture, civil the Company’s value chain. the evaluation of suppliers and contractors; this new me- gram, which aims to: engineering, software development and software, and thodology has specific evaluation criteria for the type of promotional items, among others. Local Supply G4-EC9 good or service contracted. It also includes criteria rela- ˦˦ Accompany providers in implementing improve- ted to the environment, safety and health at work, risk ment plans in the short, medium, and long-term Día de los amigos EEB Whenever possible, the Company will promote and will prevention and social responsibility. Suppliers whose ra- to achieve the required standards. prioritize procurement and contracting in Colombia in ting is “fair” or “poor” will take part in the strengthening ˦˦ Contribute to strengthening country’s business cul- During 2014, the first version of Day for Friends of the order to contribute to its own sustainable growth and program for suppliers and contractors, implemented by ture. EEB was held. Thirty suppliers attended, including some the competitiveness of domestic industry. This com- the Supply Management in 2015. ˦˦ Form socially responsible suppliers. SMEs and other strategic and critical suppliers. This spa- mitment is demonstrated by the 275 local suppliers ce inaugurated the relationship strategy of Supply Ma- that EEB had in 2014, corresponding to 95.81% of its nagement with these stakeholders, covering topics such suppliers in the year. 22% 74%

In the short-term: ˦˦ Design and implement spaces in ac- CHALLENGES cordance with suppliers’ needs, iden- Excelent ˦˦ Improve the effectiveness and effi- tified through suggestions, concerns Good Having a supply ciency of the procurement process, in and comments collected in different Regular chain terms of time and activities. activities carried out with the Supplier Bad ˦˦ Continue and promote the mechanis- Relationship Program. ms implemented for communication 3% Long-term: with stakeholders.

1% ˦˦ Design a Recognition Program for su- ˦˦ Consolidate the Company’s Optimal ppliers. Supply Model, to make savings and reduce rework in procurement. Medium-term: ˦˦ Transform the Company into an inter- ˦˦ Extend relationship practices with su- national benchmark for managing the ppliers to subsidiaries. supply chain in the Dow Jones Sustai- ˦˦ Strengthen the Supplier Relationship nability Index measurements. Program and Supplier Development.

Figure 22. Results for suppliers evaluated in 2014

204 205 EEB Informe de Gestión Sostenible 2014

Thank you!

Intellectual property and Copyright

The Empresa de Energía de Bogotá S.A. ESP meets the standards of intellectual property and copyright in all the licenses installed in the Company. During 2014, no claims or penalties were presented by the authorities, or requests for violations or possible violations related to copyright. For this reason, financial statements do not record liabilities for these items.

Note: This report replaces the one published on March 6, 3015, and contains some minor adjustments in its content.

206 Annexes

1. Letter of Assurance from PwC

2. Table GRI

3. Table COP

4. Table Blueprint

5. Financial statements EEB

6. Consolidated financial statements of the Grupo Energía de Bogotá

EEB Sustainable Management Report 2014

1 2 3 Annexes

GRI Table EEB 2014

Additional essential Indicators subject Material Aspects “in conformity” options to PwC insurance

GRI G4 Indicator Location and / or comment Page

General Basic Content

Straegy and Analysis

A message for our stakeholders Statement from the Organization’s most senior decision-maker of the G4-1 Letter from the EEB President and the President 6 organization about the relevance of sustainability to it. of the Board of Directors

Profile of the organization

G4-3 Name of the Organization de la organization. Chapter 1: About EEB and the Grupo Energía de Bogotá 15

G4-4 Most important brands, products and services. Chapter 1: About EEB and the Grupo Energía de Bogotá 15

G4-5 Please where the Organization’s Headquarters are located. Chapter 1: About EEB and the Grupo Energía de Bogotá 15

G4-6 Number of countries where the Organization operates. Chapter 1: About EEB and the Grupo Energía de Bogotá 15

G4-7 Description of characteristics of ownership and its legal form. Chapter 1: About EEB and the Grupo Energía de Bogotá 15

Chapter 1: About EEB and the Grupo Energía de Bogotá Indication of markets served (with geographical breakdown by sec- 15, G4-8 Subchapter 2.4 Commitment 2: Provide a service with tors and types of customers and recipients). 112-113 world-class standards

G4-9 Size of the Organization Chapter 1: About EEB and the Grupo Energía de Bogotá 15

G4-10 Size of payroll Chapter 1: About EEB and the Grupo Energía de Bogotá 189

48 of the Company’s employees are part of the collec- G4-11 Percentage of employees covered by collective convention GRI Table tive labor convention, representing 14,76%.

G4-12 Description of the supply chain Chapter 1: About EEB and the Grupo Energía de Bogotá 22-23

No significant changes occurred during the period cov- G4-13 Significant changes GRI Table ered by the report

Indication of how the organization manages the principle of pre- G4-14 Subchapter 2.2.3 Risk and Crisis Management 52 caution, if applicable

Letters, principles or other external initiatives of economic, environ- G4-15 mental and social nature that the organization has signed or adopt- Chapter 1: About EEB and the Grupo Energía de Bogotá 30-31 ed.

Associations (e.g. industrial associations) and organizations of in- G4-16 Chapter 1: About EEB and the Grupo Energía de Bogotá 30-31 ternational or domestic promotion to which the organization belongs

Subchapter 2.4 Commitment 2: Provide a service with EU1 Installed transmission capacity 107 world-class standards

217 1 2 3 Annexes EEB Sustainable Management Report 2014

GRI G4 Indicator Location and / or comment Page GRI G4 Indicator Location and / or comment Page

Not applicable, the business of the Empresa de En- We continue our management reporting based on the Net generation of energy by primary sources and the regulato- EU2 ergía de Bogotá S.A. ESP is the transmission of elec- - Significant changes in the scope and coverage of every aspect com- Model of Global Responsibility, the Subchapters were ry regime G4-23 GRI Table tricity. pared to previous reports adjusted according to the update of materiality exercise in 2014.

The Empresa de Energía de Bogotá, due to its busi- Stakeholder participation ness model concerning the transmission of electricity, does not have residential, industrial, institutional and G4-24 List of stakeholder groups linked to the organization Subchapter 2.1.1 Involvement with stakeholders 36 EU3 Number of residential, industrial, institutional and commercial clients commercial clients as final clients. We consider our cli- - ents to be the operators of the transmission network. See Chapter 2, Subchapter 1. Our understanding of What the choice of stakeholders with whom the organization Works G4-25 Subchapter 2.1.1 Involvement with stakeholders 36 corporate sustainability is based on.

Length of transmission lines and surface and ground distribution per Subchapter 2.4 Commitment 2: Provide a service with G4-26 Organizational focus on the participation by Stakeholders Subchapter 2.1.1 Involvement with stakeholders 36 EU4 107 regulatory regime world-class standards

Material Aspects and Cover Based on dialogs with stakeholders carried out in 2013, inputs obtained from other channels and oth- What key issues and problems have arisen from the participation of er measurements (reputation, effectiveness of inter- This annual report covers the activities of the Empresa G4-27 stakeholders; description of the assessment made by the organiza- GRI Table nal communication) material aspects were identified de Energía de Bogotá S.A. ESP en Colombia. Financial tion, including this report. List of entities included in the consolidated financial statements and the management of which can be seen in this pres- statements for the Company are presented, but con- G4-17 which of these entities has not been included in the sustainability re- GRI Table ent report. solidated financial statements are also attached, which port. include the performance of the subsidiaries that make up the Grupo Energía de Bogotá. Perfil de la memoria

Description of the process that was followed to determine the con- Subchapter 2.1.2 The Updating of Material Matters in G4-18 37 tents of the report and coverage of each aspect 2014 G4-28 Period covered by the report (e.g., fiscal or calendar year) About this report 10

List of material aspects identified during the process to define -re Subchapter 2.1.2 The Updating of Material Matters in G4-19 37-39 port contents 2014 G4-29 Date of last report (if applicable) About this report 10

Subchapter 2.1.2 The Updating of Material Matters in 2014 G4-30 Reporting cycle (annual, biennial, etc.). About this report 10 Subchapter 2.2 Good government, ethics, risk management and human rights Empresa de Energía de Bogotá Subchapter 2.3 Commitment 1: Create value for Provide a point of contact to address concerns that may arise about Gerencia del Sistema de Gestión Integrado shareholders G4-31 GRI Table the contents of the report Carrera 9 #73-44 Subchapter 2.4 Commitment 2: Provide a service with email: [email protected] world-class standards G4-20 Coverage of each material aspect within the organization 41-205 Subchapter 2.5 Commitment 3: Care and respect the environment Subchapter 2.6 Commitment 4: Improve quality of life G4-32 Option “in conformity” with the guide chosen by the organization. About this report 10 of the communities where the Company operates Subchapter 2.7 Commitment 5: Be a great place to work Subchapter 2.8 Commitment 6: Having a sustainable value chain For the 2014 Sustainable Management Report, we have take out limited insurance (for the first time) base don the ISAF 3000 standard by an independent The materiality exercise held in 2014 included review- third party, in this case by PricewaterhouseCoopers, ing various internal and external sources, and was infor seven of our material indicators ad non our dec- Policy and practices in force in the organization regarding external tended to compile the relevant issues in the energy G4-33 laration of essential conformity level per the Sustain- 10 G4-21 Coverage of each material aspect outside the organization 37-39 verification of the report sector, with reference to stakeholders, guilds / associ- ability Reporting Guidelines of the Global Reporting ations, among others. In this exercise no external cov- Initiative (GRI), version G4. This activity strength- erage limitations were identified. ens management’s commitment as well as that of the Company to quality and transparence of the reported information. Description of the consequences of the restatements of information No statements of information provided in earlier re- G4-22 GRI Table provided in earlier reports and their causes. ports

218 219 1 2 3 Annexes EEB Sustainable Management Report 2014

GRI G4 Indicator Location and / or comment Page GRI G4 Indicator GRI Aspect Location and / or comment Page

Government Specific Basic Contents

29 Commitment 1: Good Government, ethics and risk management G4-34 Governance structure of the organization Subchapter 2.2.1 Good Government 41

Ethics and the fight against corruption Description of the process of consultation between stakeholders and the highest governing body regarding economic, environmen- Policies and procedures for communication and The fight against Subchapter 2.2.2 Ethics and the fight G4-37 tal and social issues. If such consultation is delegated, to whom and Subchapter 2.2.1 Good Government 46-47 G4-SO4 48-52 training on the fight Against Corruption corruption against corruption describe the processes for exchanging information with the highest governing body Confirmed cases of corruption and adopted mea- The fight against Subchapter 2.2.2 Ethics and the fight G4-SO5 48-52 sures corruption against corruption Description of the composition of the supreme governing body and G4-38 Subchapter 2.2.1 Good Government 42-43 its committees Risk and Crisis Management

Describe the process of nomination and selection of the highest governing body and its committees, and the criteria on which the ap- In 2014 the methodology for risk management was strengthened and specific measurements were taken whose results G4-40 Subchapter 2.2.1 Good Government 42-47 Own pointment is based and the selection of members of the former, are confidential. We project that by 2015 a measurement will be made of the levels of implementation of controls that GRI Table indicator among others help the risks do not materialize.

Describe the process by which the highest governing body prevents Respect for and promotion of human rights G4-41 and manages potential conflicts of interest. Indicate whether con- Subchapter 2.2.1 Good Government 42-47 flicts of interest are communicated to stakeholders In our procurement processes, we in- Number and percentage of contracts and invest- form our suppliers about the Ten Princi- ment agreements that include human rights claus- Human rights / In- ples of the Global Compact, with which G4-HR1 GRI Table Indicate how often the highest governing body analyzes economic, es or that have undergone screening on human vestment we promote respect for human rights and G4-47 Subchapter 2.2.1 Good Governmen 42-47 environmental and social impacts, risks and opportunities. rights support the best practices in labor, environment and anticorruption.

There is an omission in the reporting of management indicators Own (specific basic contents of GRI) as currently the steps taken during Number of cases of discrimination and corrective Human rights / GRI Table G4-HR3 No cases were presented in 2014 GRI Table indicator the period reported. However, we do not have a specific indicator for actions taken Non-discrimination this. During 2015 we hope to define these indicators.

Identification of facilities and suppliers for which Human rights / Free- Ethics and Integrity freedom of association and the right to collective dom of association No risks of violations of the right to free G4-HR4 GRI Table bargaining may be infringed or threatened, and and collective bar- association were identified measures taken to defend these rights gaining

Describe the values, principles, standards and norms of the organi- Subchapter 2.2.2 Ethics and the fight against corrup- Identification of centers and suppliers with a sig- G4-56 48-52 zation, such as codes of conduct or ethical codes. tion nificant risk for incidents of child labor, and mea- Derechos Humanos / G4-HR5 In 2014, there were no risks of violations GRI Table sures taken to contribute to the abolition of child Trabajo infantil concerning child labor labor

Centers and significant suppliers with significant risk for incidents of forced labor, and measures Human rights / In 2014, there were no risks of violations Describe the internal and external advisory mechanisms to ensure G4-HR6 GRI Table Subchapter 2.2.2 Ethics and the fight against corrup- taken to contribute to the elimination of all forms Forced labor concerning forced labor G4-57 ethical and lawful conduct, and for matters relating to the integrity 48-52 tion of forced labor of the organization, such as helplines or advice.

Number of complaints on human rights that have Human rights/ griev- No complaints were presented concern- G4-HR12 been filed, addressed and resolved through formal ance mechanisms in GRI Table ing Human rights in 2014 grievance mechanisms human rights

Describe the internal and external mechanisms for reporting un- ethical or illegal conduct and matters relating to the integrity of the Subchapter 2.2.2 Ethics and the fight against corrup- Commitment 2: Create value for shareholders G4-58 48-52 organization, such as the staggered reporting to management con- tion trols, mechanisms or whistleblowing hotlines. Growth and profit maximization

Economic perfor- Subchapter 2.3.1 11 Growth and profit G4-EC1 Direct generated and distributed economic value 68 mance maximization

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GRI G4 Indicator GRI Aspect Location and / or comment Page GRI G4 Indicator GRI Aspect Location and / or comment Page

Support for Development of Bogotá Strategy for Climate Change

Development and impact of infrastructure invest- Indirect economic Subchapter 2.3.2 Support for Develop- Financial implications and other risks and oppor- G4-EC7 94-105 Economic Subchapter 2.5.2 Atmospheric emissions ments and types of services consequences ment of Bogotá G4-EC2 tunities for the organization’s activities due to cli- 154-161 performance and climate change mate change Significant indirect economic impacts and their Indirect economic Subchapter 2.3.2 Support for Develop- G4-EC8 94-105 scope consequences ment of Bogotá atmospheric Emissions

Results / Accomplishments of projects executed Subchapter 2.5.2 Atmospheric emissions Own Subchapter 2.3.2 Support for Develop- and / or completed in 2014 by the Fundación Gru- 96-98 and climate change indicator ment of Bogotá po Energía de Bogotá or with allies G4-EN15 Direct Emissions of Greenhouse Gases (Scope 1) Emissions 157 Additional information request per sector Commitment 3: Care and respect the environment protocol is not applicable due to the nature of our business

Reforestations $76.000.000 Subchapter 2.5.2 Atmospheric emissions Biodiversity monitoring: $ 23.000.000 and climate change $8.042.628 for disposal of dangerous Indirect Emissions of Greenhouse Gases from the waste generated by the company in the G4-EN16 Emissions Additional information request per sector 158 generation of electricity (Scope 2) vice-presidency of transmission. protocol is not applicable due to the na- $137.817.896 for environmental manage- ture of our business ment which covers campaigns, condition- ing of zones for separation and storage Breakdown of environmental expenditures and in- Environment / G4-EN31 of waste GRI Table vestments General Other Indirect Emissions of Greenhouse Gases Subchapter 2.5.2 Atmospheric emissions ($16.225.000 to construct a warehouse G4-EN17 Emissions 159 (Scope 3) and climate change $43.535.103 for PIGA video campaign + $20.000.000 GAIA + $28.247.793 to en- Subchapter 2.5.2 Atmospheric emissions close recycled plastic posts + $9.520.000 G4-EN19 Reduction of Greenhouse gas emissions Emissions 159 to sow aromatic plants in la Nube + and climate change $17.290.000 to buy and move ecological points + 3.000.000 GEI –GAIA training to Similar concession for CO2 gas emission, Not applicable. EEB is analyzing different subsidiaries) EU5 GRI Table ordered by the carbon trading system options to compensate its emissions

Biodiversity operational Eco-Efficiency

On the website of the Company information re- There is no information for compensation garding electricity consumption, materials areas. However, it is presumed that by management and waste and water resource man- re-introducing native species in the areas Own agement will be published. of compensation, via enrichment, the in- indica- GRI Table Biodiversity of the areas of compensation com- dex after compensation is higher. G4-EU13 Biodiversity GRI Table tors pared to the biodiversity of the affected areas Published on the webpage:http://www.eeb.com. We do not have further information to re- co/responsabilidad-global/gestion-sostenible/bole- port. We expect to make progress in the tin-ambiental measurement of this indicator in 2015.

Commitment 4. Provide a service with world-class standards

Operational sites owned, leased, managed to be Quality and reliability of service adjacent, contain or are located in protected ar- G4-EN11 Biodiversity Subchapter 2.5.1 Biodiversity 135-153 eas and unprotected areas of high value for bio- Monetary value of significant fines for noncompli- There were no fines for this reason diversity G4-PR9 ance with laws and regulations concerning the pro- GRI Table in 2014 vision and use of products and services

Description of significant impacts on biodiversity in Subchapter 2.5.1 Biodiversity protected areas or areas of high value in terms of bi- All our impacts on biodiversity are gener- G4-EN12 Biodiversity 135-153 Innovation in business management and energy business ological diversity not protected from activities, prod- ated in the installation and maintenance ucts and services of transmission lines

Results / Accomplishments of projects executed Own Subchapter 2.4.2 Innovation in business G4-EN13 protected or restored habitats Biodiversity Subcapítulo 2.5.1 Biodiversidad 135-153 and / or completed in 2014 by the Fundación Gru- GRI Table indicator management and energy business po Energía de Bogotá and allies

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GRI G4 Indicator GRI Aspect Location and / or comment Page GRI G4 Indicator GRI Aspect Location and / or comment Page

Commitment 5. Be a great place to work During 2014, no formal complaints filed with the Ministry of Labour. A claim for Attraction and retention of human talent the year 2013 was discussed during the period.

Subchapter 2.7.1 Attraction and reten- Number of complaints on labor practices have Grievance mecha- The EEB has a Committee on Labor Coex- tion of human talent G4-LA16 been filed, addressed and resolved through formal nisms for labor-relat- GRI Table istence with members representing both The Company’s area of Human Talent is grievance mechanisms ed complaints management and workers seeking ap- responsible for monitoring and manag- proaches and understandings of similar Total number and rate of hires and employee turn- ing the indicators pertaining to attraction G4-LA1 Employment 192-193 situations that due to confidentiality is- over, broken down by age group, sex and region and retention of human talent. sues cannot be reported

Additional information requested by sector protocol is not available. It will be considered for 2015. 22 workers may retire in ten years and collect their old age pension, this corre- Development of Human Talent Percentage of employees eligible to retire in the sponds to 6,6%. EU15 next 5 and 10 years broken down by job catego- GRI Table Percentage of employees receiving regular perfor- Training and Edu- Subchapter 2.7.3 Development of Hu- ry and region Of this percentage; 3,9 corresponds to G4-LA11 mance and career development reviews by gender 192-193 cation man Talent those who will retire in 5 years, 2,7 be- and professional category tween 6 and 10 years.

Work environment and employee welfare Management of Knowledge

For this area, the Company declares an All of our permanent administrative and omission given that currently it does not operational staff members benefit from report information indicator account. the following social benefits: During 2015 the guidelines to create a Social benefits are for full-time employees, and Own ● life assurance Indicator on knowledge management baseline for measuring progress in mate- GRI Table are not provided to temporary or part-time em- indicator G4-LA2 Employment ● cover for incapacity or invalidity, cov- GRI Table rial issue in the short and medium term ployees; figures are broken down by major oper- er by the basic health insurance plan in will be constructed, as defined in ations. Colombia. Subchapter 2.7.4 Management of Knowl- ● Paternity and Maternity leave edge. ● Obligatory pension fund Commitment 6. Improve quality of life of the communities where the Company operates

Social investment in communities were we operate

Seven (7) employees in total. (Four (4) female, and three (3) men exercised their right to maternity and paternity Development and impact of infrastructure invest- Indirect economic Subchapter 2.6.1 Social investment in leave, all (7) returned to work after the G4-EC7 163-172 ments and types of services consequences communities were we operate Levels or reincorporation to work and retention fol- end of their leave. Six (6) employees, G4-LA3 lowing maternity or paternity leave, broken down Employment three (3) female and three (3) male, re- GRI Table by gender turned to work after the end of their maternity or paternity leave and retained their employment twelve months after their reinstatement.

Significant indirect economic impacts and scope Indirect economic Subchapter 2.6.1 Social investment in G4-EC8 163-172 thereof consequences communities were we operate

Minimum notice periods for operational changes Relations between Currently there is no notice. In 2014 G4-LA4 and possible inclusion of these in collective agree- workers and manage- GRI Table there was no significant change ments ment Results/Accomplishments of projects executed Own Subchapter 2.6.1 Social investment in and/or completed in 2014 by the Fundación Grupo 163-172 indicator communities were we operate Energía de Bogotá or allies

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GRI G4 Indicator GRI Aspect Location and / or comment Page Advanced COP Table

Management of Community Relations Consult Location and / or comment Page

Number of cases of violation of the rights of Rights of indigenous G4-HR8 No cases were presented in 2014 GRI Table Profile of communication of progress de la (CoP) indigenous people and actions taken peoples

Format used for the COP The CoP is part of the Company’s Sustainability Report

Subchapter 2.6.2 Management of Com- Number of complaints on social impacts that have Complaint mecha- munity Relations What period of time does the COP cover? January 1 to December 31, 2014 G4-SO11 been filed, addressed and resolved through formal nisms due to social 173-181 Subchapter 2.6.3 Coexistence of commu- grievance mechanisms impact nities with infrastructure Statement from the CEO (or equivalent) expressing contin- A message for our stakeholders (Letter from the EEB President and the Presi- ued support for the Global Compact and renewing the com- dent of the Board of Directors) Coexistence of communities with infrastructure pany Commitment to the initiative and its principles.

Subchapter 2.6.2 Management of Com- Number of complaints about social impact which Complaint mecha- Description of actions and policies related to human rights 2.2.4 Respect for and promotion of human rights munity Relations G4-SO11 have been presented, deal with and resolved by nisms due to social 173-181 Subchapter 2.6.3 Coexistence of commu- formal complaint mechanisms. impact nities with infrastructure 2.2.1 Good Government / Corporative Policies / Employee policy Description of actions and policies related to labor principles Results/achievements of implemented and / or fi- 2.7 Commitment 5: Be a great place to work Own Subchapter 2.6.3 Coexistence of commu- nalized projects in 2014 by the Fundación Grupo 177-181 indicator nities with infrastructure Energía de Bogotá or with allies Description of actions and policies related to environment 2.5 Commitment 3: Care and respect the environment

Commitment 7: Having a sustainable value chain Description of actions and policies related to the fight against 2.2.2 Ethics and the fight against corruption Efficient contractual processes Corruption

2.2.2 Ethics and the fight against corruption Percentage of expenditure in areas with significant Description of actions and related business operations in con- G4-EC9 Procurement practices 4.7.1. Efficient contractual processes 205 flict areas and / or high risk policies operations corresponding to local suppliers 2.2.3 Risk and Crisis Management

Qualitative and / or quantitative measurement of results il- 2.1 Our understanding of corporate sustainability lustrating the extent to which targets / indicators have been Note: We did not include sectorial indicators of Electric Utilities protocol for all material respects, as there is not enough achieved GRI table information. We will analyze their inclusion in 2015. The annual Sustainability Report, available on the webpage: http://www.eeb. BSE shares its COP with stakeholders through: com.co/responsabilidad-global/gestion-sostenible/informes-de-gestion-sostenible

About this report Assessing the accuracy and completeness of the information

in its COP 2.1 Our understanding of corporate sustainability

About this report Standards of transparency and disclosure GRI Table

CRITERION 1: The COP describes implementation in corporate functions and business units

Allocate responsibility for the execution of the sustainability strategy (catering, corporate affairs, human resources, legal 2. Our Integral Management etc.) relevant corporate functions, ensuring that no function is 2.1 Our understanding of corporate sustainability in conflict with the Company’s commitments and objectives of 2.2.1 Good Government sustainability

Align strategies, targets and incentive structures with corpo- 2.1 Our understanding of corporate sustainability rate sustainability strategy in all business units and subsid- 2.3 Commitment 1: Create value for shareholders iaries.

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Consult Location and / or comment Page Consult Location and / or comment Page

Align strategies, targets and incentive structures with corpo- CRITERION 6: The COP describes robust commitments, strategies or policies in the area of labor standards 2.1 Our understanding of corporate sustainability rate sustainability strategy in all business units and subsid- GRI Table iaries Reference in the policies of the company earlier relevant inter- 2.2 Good government, ethics, risk management and human rights national labor standards (ILO conventions) and other interna- 2.7 Commitment 5: Be a great place to work Designing corporate sustainability strategy such that foster syn- tional legal instruments ergies between and within specific areas to properly manage 2.1 Our understanding of corporate sustainability the opportunity costs Reflection on the relevance of the labor principles for the com- 2.7 Commitment 5: Be a great place to work pany

Ensure that different corporate functions are coordinated to 2.1 Our understanding of corporate sustainability maximize performance and avoid unforeseen negative impacts 2.2.3 Risk and Crisis Management Written company policy to respond to national labor law, respect the principles of the relevant international labor stan- 2.7 Commitment 5: Be a great place to work dards in global operations, and dialogue with organizations CRITERION 2: The COP describes implementation in the value chain representing the (international, sectorial, national) workers.

Carefully analyze each segment of the value chain (upstream / 2.2.3 Risk and Crisis Management Inclusion in contracts with suppliers and other relevant part- downstream), when assessing risks, opportunities and impacts 2.8 Commitment 6: Having a sustainable value chain ners references to the principles of international labor stan- 2.7 Commitment 5: Be a great place to work dards applicable 2.2.1 Good Government / Corporative Policies (Supply and procurement) Communicate policies and expectations to suppliers and other Commitments and specific human resources policies in line relevant partners 2.7 Commitment 5: Be a great place to work 2.8 Commitment 6: Having a sustainable value chain with national development priorities and priorities related to 2.8 Commitment 6: Having a sustainable value chain decent work in the country of operation Implement monitoring and assurance mechanisms (eg .: audits / assessments) within the circle of influence of the compa- 2.8 Commitment 6: Having a sustainable value chain CRITERION 7: The COP describes effective systems for integrating labor principles ny to verify compliance

Risk assessment and impact on labor issues 2.7 Commitment 5: Be a great place to work Educate, train and implement other training between suppliers 2.8 Commitment 6: Having a sustainable value chain and other partners Mechanisms for dialogue with unions to regularly review the progress of the company’s management regarding labor stan- 2.7 Commitment 5: Be a great place to work CRITERION 3: The COP describes robust Commitments, strategies or policies in the area of human rights dards

Any policy, procedure, and relevant activity that the company Grievance mechanisms, communication channels and other plans to develop to meet this criterion, including objectives, time- 2.2.4 Respect for and promotion of human rights procedures (e.g. complaint mechanisms) available for workers 2.2.7 Commitment 5: Be a great place to work lines, metrics, and responsible staff to report, make suggestions or 2.2 Good government, ethics, risk management and human rights GRI Table seek advice, designed and managed in accordance with the CRITERION 4: The COP describes robust Commitments, strategies or policies in the area of human rights representative organization of workers

Any policy, procedure, and relevant activity that the company CRITERION 8: The COP describes effective mechanisms for monitoring and evaluation of the integration of labor principles plans to develop to meet this criterion, including objectives, time- 2.2.4 Respect for and promotion of human rights lines, metrics, and responsible staff Systems for monitoring and performance measurement stan- 2.7 Commitment 5: Be a great place to work dards-based performance measurement metrics Raise awareness internally and human rights training for man- 2.2.4 Respect for and promotion of human rights agers and employees. Dialogs with the representative organization of workers to regularly review progress and identify priorities for the future to- 2.7 Commitment 5: Be a great place to work Complaints mechanisms at the operational level for those po- 2.2 Good government, ethics, risk management and human rights gether tentially impacted by company activities. 2.2.4 Respect for and promotion of human rights

Processes to positively involve suppliers in facing challenges 2.7 Commitment 5: Be a great place to work CRITERION 5: The COP describes effective mechanisms for monitoring and evaluation of the integration of human rights (e.g. joint approach instead of a corrective approach) through schemes to improve working practices 2.8 Commitment 6: Having a sustainable value chain

Any policy, procedure, and relevant activity that the company plans to develop to meet this criterion, including objectives, time- 2.2.4 Respect for and promotion of human rights Results of the integration of the labor principles 2.7 Commitment 5: Be a great place to work lines, metrics, and responsible staff CRITERION 9: The COP describes robust Commitments, strategies or policies in the area of environmental management

Mechanisms legitimate, accessible, predictable, fair, trans- 2.2 Good government, ethics, risk management and human rights parent, consistent with human rights, a source of continuous Reference to relevant international conventions and other in- 2.2.4 Respect for and promotion of human rights 1. Chapter 1: About EEB and the Grupo Energía de Bogotá learning complaint, and based on engagement and dialog ternational instruments

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Consult Location and / or comment Page Consult Location and / or comment Page

Reflection on the relevance of environmental responsibility for Anticorruption policy concerning trading partners 2.2 Good government, ethics, risk management and human rights 2.5 Commitment 3: Care and respect the environment the company CRITERIO 13: La COP describe sistemas de gestión efectivos para la integración del principio de anti-corrupción Corporative Policies written on environmental liability 2.5 Commitment 3: Care and respect the environment

Support in the fight against corruption by the directors of the 2.2 Good government, ethics, risk management and human rights Inclusion of minimum environmental standards in contracts 2.8 Commitment 6: Having a sustainable value chain organization with suppliers and other relevant partners GRI Table

Develop risk assessment in areas with potential for corruption 2.2 Good government, ethics, risk management and human rights Commitments and targets for specific years. 2.5 Commitment 3: Care and respect the environment

CRITERION 10: The COP describes effective management systems to integrate environmental principles HR procedures that support anti-corruption commitments or policies, including communication and training for all employ- 2.2 Good government, ethics, risk management and human rights 2.2.3 Risk and Crisis Management ees Risk assessment and environmental impact 2.5 Commitment 3: Care and respect the environment Checks and balances to ensure internal consistency Commit- 2.2 Good government, ethics, risk management and human rights Impact assessment throughout the lifecycle of the products, ment to the Fight Against corruption 2.5 Commitment 3: Care and respect the environment ensuring strong environmental management policies Actions taken to motivate partners to implement anti-corrup- 2.2 Good government, ethics, risk management and human rights Creating inner awareness and training for managers and em- tion Commitments 2.5 Commitment 3: Care and respect the environment ployees on environmental liability Channels of communication (complaints) and monitoring 2.2 Good government, ethics, risk management and human rights mechanisms to report issues or seek advice Grievance mechanisms, communication channels and other 2.5 Commitment 3: Care and respect the environment procedures (e.g. complaint mechanisms) for reporting sus- CRITERION 14: The COP describes effective mechanisms for monitoring and evaluating the mainstreaming of anti-corruption principles. pected or seek advice on environmental impacts 2.6.2 Management of Community Relations

Processes for managing incidents 2.2 Good government, ethics, risk management and human rights CRITERION 11: The COP describes effective mechanisms for monitoring and evaluating the integration of environmental management principle Public legal cases related to corruption GRI Table (SO5 Indicator)

System monitoring and performance measurement based on 2.5 Commitment 3: Care and respect the environment Results of integration of anticorruption principle measures 2.2 Good government, ethics, risk management and human rights standardized performance metrics

CRITERION 15: The COP describes contributions of the main activity of the company’s objectives and UN affairs Monitoring and review of the results by the directives 2.5 Commitment 3: Care and respect the environment

Align the main strategy of the company with one or more ob- 1. Chapter 1: About EEB and the Grupo Energía de Bogotá Procedures for managing incidents 2.5 Commitment 3: Care and respect the environment jectives / relevant UN affairs 2.1 Our understanding of corporate sustainability

Develop relevant products and services or designing business 1. Chapter 1: About EEB and the Grupo Energía de Bogotá Audits or other steps to monitor and improve the environ- Not reported models that contribute to the objectives / UN affairs 2.1 Our understanding of corporate sustainability mental performance of companies in the supply chain

Adopt and modify operating procedures to maximize the con- 1. Chapter 1: About EEB and the Grupo Energía de Bogotá Results of the integration of environmental principles 2.5 Commitment 3: Care and respect the environment tribution to the objectives / UN affairs 2.1 Our understanding of corporate sustainability

CRITERION 12: The COP describe solid commitments, strategies or policies in the area of anti-corruption CRITERION 16: The COP describes strategic social investment and philanthropy

Establish publically a formal policy of zero tolerance of cor- 2.2 Good government, ethics, risk management and human rights Search for social investments and philanthropic contributions 2.3.2 Support for Development of Bogotá ruption that match the skills of the company or its operating context 2.6 Commitment 4: Improve quality of life of the communities where the Com- as an integrated part of its sustainability strategy pany operates Commitment to comply with all relevant anti-corruption laws, including the implementation of procedures to know the law 2.2 Good government, ethics, risk management and human rights and track changes thereto Coordinate efforts with other organizations and initiatives to 2.3.2 Support for Development of Bogotá amplify and not cancel out or unnecessarily duplicate the ef- 2.6 Commitment 4: Improve quality of life of the communities where the Com- forts of other contributors pany operates Statement of support for regional and international legal 2.2 Good government, ethics, risk management and human rights frameworks such as the UN Convention against Corruption 1.5 Participation in external Initiatives, awards and prizes

Take responsibility for the intentional or unintentional funding 2.3.2 Support for Development of Bogotá and respect local customs, traditions, religions, and priorities 2.6 Commitment 4: Improve quality of life of the communities where the Com- Detailed policies for high-risk areas concerning corruption 2.2 Good government, ethics, risk management and human rights relevant individuals and groups effects pany operates

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Consult Location and / or comment Page Consult Location and / or comment Page

The Board establishes a committee, when possible, or as- 2.2.1 Good Government CRITERION 17: The COP describes advocacy and involvement in public policy signed a board member responsible for corporate sustainability

Mensaje a nuestros grupos de interés The Board (or Committee), whenever possible, approves the

formal reports on corporate sustainability (communication on 2.2.1 Good Government Sobre este informe Publicly advocate the importance of actions taken in relation to progress) one or more objectives / UN affairs 1. Capítulo 1: Sobre EEB y el Grupo Energía de Bogotá CRITERION 21: The COP describes engagement with stakeholders 2.1 Nuestro entendimiento de la Sostenibilidad Corporativa

Publicly take responsibility for the impacts of the company in 2.1.1 Involvement with stakeholders A message for our stakeholders involvement with internal and external stakeholders 2.1.2 The Updating of Material Matters in 2014

Commitment by the directives of the organization to partici- About this report pate in summits, conferences, and other important public pol- Define strategies, objectives and policies of sustainability, in icy interactions in relation to one or more objectives / UN 2.1.1 Involvement with stakeholders 1. Chapter 1: About EEB and the Grupo Energía de Bogotá consultation with key stakeholders affairs 2.1.2 The Updating of Material Matters in 2014

2.1 Our understanding of corporate sustainability Consult with stakeholders to address dilemmas and challenges in implementing and invite them to participate actively in per- 2.1.1 Involvement with stakeholders CRITERION 18: The COP describes alliances and collective actions formance evaluation 2.1.2 The Updating of Material Matters in 2014

Join industry peers, UN entities and / or other stakeholders in Establish channels to engage employees and other stakehold- initiatives that contribute to solving common challenges and ers to hear their ideas, address your concerns, and to protect 2. Our Integral Management dilemmas locally and / or globally with emphasis on initiatives 1.5 Participation in external Initiatives, awards and prizes whistleblowers that expand the positive impact of the company in its value chain

CRITERION 19: The COP describes the Commitment and leadership of the General Manager

Mensaje a nuestros grupos de interés

The general manager provides explicit statements and publicly Sobre este informe demonstrates personal leadership on sustainability and Com- mitment to the Global Compact. 1. Capítulo 1: Sobre EEB y el Grupo Energía de Bogotá

2.1 Nuestro entendimiento de la Sostenibilidad Corporativa

A message for our stakeholders

The general manager promotes initiatives to improve sustain- About this report ability in the sector of the company and encourages the development of industry standards 1. Chapter 1: About EEB and the Grupo Energía de Bogotá

2.1 Our understanding of corporate sustainability

A message for our stakeholders

The general manager leads the executive team in the develop- About this report ment of corporate sustainability strategy, defining objectives and conducting monitoring implementation 1. Chapter 1: About EEB and the Grupo Energía de Bogotá

2.1 Our understanding of corporate sustainability

CRITERION 20: The COP describes the adoption of and supervision by the board of directors

The board of directors (or equivalent) assumes responsibility and supervision of the strategy and long-term performance in 2.2.1 Good Government corporate sustainability

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Blueprint Table Consulta Ubicación y/o comentario Pág

4. Implementation in the value chain

2.2.3 Risk and Crisis Management Consulta Ubicación y/o comentario Pág Analyze each segment of the value chain carefully in both di- 2.8 Commitment 6: Having a sustainable value chain rections when assessing risks, opportunities and impacts DIMENSION 1: Implement the ten principles in the strategies and operations

Communicate policies and expectations to suppliers and other 1. Coverage and integration between principles 2.8 Commitment 6: Having a sustainable value chain business partners relevant

Implement the ten principles of the UN Global Compact strate- 1.5 Participation in external Initiatives, awards and prizes gies and operations 2.1 Our understanding of corporate sustainability Implement monitoring and assurance mechanisms within the 2.8 Commitment 6: Having a sustainable value chain sphere of influence of the Company.

Designing a corporate sustainability strategy to exploit the synergy between the areas to be treated, and bear the respec- 2.1 Our understanding of corporate sustainability Educate, train and build other skills with suppliers and other 2.8 Commitment 6: Having a sustainable value chain tive sacrifices business partners.

Ensure that different corporate functions coordinate closely to 2.1 Our understanding of corporate sustainability DIMENSION 2: Take steps to support greater variety of goals and themes of the United Nations maximize yields and avoid any unexpected negative impact. 2.2.1 Good Government 1. Contributions core business goals and UN issues

2. Policies and procedures for strong management 1. Chapter 1: About EEB and the Grupo Energía de Bogotá Align core business strategy with one or more goals, and / or 2.1 Our understanding of corporate sustainability Assess risks and opportunities on a regular basis, both at com- relevant UN issues. 2.3 Commitment 1: Create value for shareholders pany level and at the level of the product, and follow up to en- 2.2.1 Good Government COP Table sure that the Company identifies the negative impacts that 2.2.3 Risk and Crisis Management may cause its operations and activities 1. Chapter 1: About EEB and the Grupo Energía de Bogotá 2.1 Our understanding of corporate sustainability Develop relevant products and services or designing business Develop strategies and policies specific to the context of the 2.3.2 Support for Development of Bogotá models that contribute to the goals and / or themes of the UN Company -at like situations for the future and set goals that 2.3 Commitment 1: Create value for shareholders 2.6 Commitment 4: Improve quality of life of the communities where the Com- are measurable in the short, medium and long term. pany operates

Educar a los empleados y lograr su participación mediante ac- 2.1 Our understanding of corporate sustainability Adopt and modify operating procedures to maximize the con- tividades de entrenamiento, desarrollo y adaptación de pro- 2.7 Compromiso 5: ser un excelente lugar de trabajo 2.3 Commitment 1: Create value for shareholders tribution to the goals and / or themes of the UN. cesos comerciales, y planes de incentivos bien establecidos COP Table

Implementar un sistema de seguimiento y medición del ren- 2. Investment and strategic social philanthropy 2. Nuestra Gestión Integral dimiento basado en medidas de rendimiento estandarizadas

Support social investments and philanthropic contributions that 2.6 Commitment 4: Improve quality of life of the communities where the Com- 3. Immersion in corporate functions and business units match the specialties of the Company and its operating context pany operates as an integrated part of its sustainability strategy. 2.3.2 Support for Development of Bogotá

Assign responsibility to implement sustainability strategies with relevant corporate functions (procurement processes, issues of 2.1 Our understanding of corporate sustainability Coordinate efforts with other organizations and initiatives to 2.6 Commitment 4: Improve quality of life of the communities where the Com- governance, human resources, legal department, etc.) and en- 2.2 Good government, ethics, risk management and human rights amplify-and not cancel or unnecessarily duplicate the efforts of pany operates sure that no function has a conflict with the Company’s com- 2.3 Commitment 1: Create value for shareholders other contributors. 2.3.2 Support for Development of Bogotá mitments and sustainability objectives.

Take responsibility for the intended and unintended effects of Align strategies, goals and incentive structures of all Business 2.1 Our understanding of corporate sustainability 2.6 Commitment 4: Improve quality of life of the communities where the Compa- the funding, and show respect for local customs, traditions, re- units and subsidiaries, with the corporate sustainability strat- 2.2 Good government, ethics, risk management and human rights ny operates ligion and priorities of relevant individuals and groups. egy. 2.3 Commitment 1: Create value for shareholders

2.1 Our understanding of corporate sustainability 3. Support and Commitment to public programs 2.2 Good government, ethics, risk management and human rights Assign responsibility for implementing corporate sustainabil- 2.3 Commitment 1: Create value for shareholders ity to a person or a group within each business unit and subsidiary. For each management material element in which the area responsible for man- Openly support the importance of action in relation to one or Letter from the EEB President and the President of the Board of Directors agement thereof within the Company should be more targets and / or UN issues. 1.5 Participation in external Initiatives, awards and prizes

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Gaining Commitment of the leaders of companies to partici- 4. Promotion and support of the UN Global Compact pate in summits, conferences and other important interactions Letter from the EEB President and the President of the Board of Directors of key public programs in relation to one or more targets and 1.5 Participation in external Initiatives, awards and prizes Promote the Global Compact with business partners, represen- 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact / or UN issues. tatives peers and the general public. Network)

4. Partnerships and Collective Action 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact Encourage suppliers and other business partners to join the UN Network) Develop and implement projects partnerships with public and Global Compact and take a leadership role to address issues 1.5 Participation in external Initiatives, awards and prizes 2.8 Commitment 6: Having a sustainable value chain private organizations (UN agencies, government, NGOs and related to the initiative. 2.6 Commitment 4: Improve quality of life of the communities where the Com- other groups) around central business issues, social invest- pany operates ment and / or support. Participate in activities to strengthen and promote the Glob- 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact Uniting industry participants, United Nations bodies and oth- al Compact. Network) er stakeholders, through initiatives to help solve common chal- 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact lenges and dilemmas locally and / or globally, with emphasis Network) on initiatives that expand the positive impact of the Company CROSS-CUTTING COMPONENTS in its chain value. 1. Commitment and leadership of executives DIMENSION 3: Engage with the UN Global Compact The Executive Director provides explicit statements and public- 1. Commitment networks and local subsidiaries ly demonstrate personal leadership of sustainability and Com- Letter from the EEB President and the President of the Board of Directors mitment to the Global Compact.

Help establish and operate at least one Global Compact Local 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact Network and help improve the performance of other compa- Network) The CEO promotes initiatives to improve sustainability in the nies through training, management, review of other partici- Company’s field of work and encourages the development of Letter from the EEB President and the President of the Board of Directors pants using COP, etc. industry standards.

Help subsidiaries to work with the Global Compact Local Networks The CEO drives the executive management team to develop 2.1 Our understanding of corporate sustainability Letter from the EEB President and the President of the Board of Directors and actively participate in events and activities. corporate sustainability strategy, set goals and monitor imple- 2.2.1 Good Government mentation.

Publish sustainability information related to each individual subsidiary separately or reference it explicitly in the Communi- 1. Chapter 1: About EEB and the Grupo Energía de Bogotá Establishment of sustainability criteria and principles of the Letter from the EEB President and the President of the Board of Directors cation on Progress from the Corporate Headquarters. Global Compact as part of the objectives and incentives for the 2.2.1 Good Government CEO and executive management team 2.3.1 11 Growth and profit maximization 2. Local and international labor groups

2. Adoption and supervision by the board of directors Participate in relevant working groups at the global or local 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact level and share experiences, networks, tools and best practices Network) The board of directors (or equivalent) assumes responsibility with other participants of the Global Compact. and supervision of the strategy and long-term performance in 2.2.1 Good Government corporate sustainability Take an active role in defining the scope and objectives of the 1.5 Participation in external Initiatives, awards and prizes (Local Global Pact new working groups where relevant Network) The Board establishes a committee, when possible, or assigned 2.2.1 Good Government a board member responsible for corporate sustainability 3. Initiatives by topics or sectors

The Board (or Committee), whenever possible, approves the Help drive one or more initiatives Global Compact and join formal reports on corporate sustainability (communication on 2.2.1 Good Government them, such as Caring for Climate, CEO Water Mandate, Princi- 1.5 Participation in External Initiatives (Local Global Pact Network y Business 4 progress) ples of Empowerment of Women and the Business Leaders Ini- Peace) tiative on Human rights. 3. Inclusion of interested parties

Publicly recognize responsibility of the Company’s impact on 2.1.1 Involvement with stakeholders Lead the process of developing new initiatives based on differ- internal and external stakeholders 1.5 Participation in External Initiatives (Local Global Pact Network y Business 4 ent sectors or issues within the Global Compact and the UN in Peace) general. Define sustainability strategies, objectives and policies, in con- 2.1.1 Involvement with stakeholders sultation with key stakeholders 2.2 Good government, ethics, risk management and human rights

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Consult with participants in resolving challenges and imple- 2.1.1 Involvement with stakeholders mentation dilemmas and invite them to participate actively in 2.2 Good government, ethics, risk management and human rights the review of performance.

Establish communication channels to hear the ideas and con- 2.1.1 Involvement with stakeholders cerns of employees and other stakeholders and to protect 2.2 Good government, ethics, risk management and human rights those who decide to denounce activities of their peers.

4. Transparency and Disclosure

Share sustainability information with all stakeholders and re- 2.1.1 Involvement with Stakeholders spond to questions and concerns of the participants. 2.2 Good government, ethics, risk management and human rights

Ensure that Communication on Progress covers all aspects of 2.1 Our understanding of corporate sustainability the Leadership Model and use, where appropriate, the frame- COP Table work of the Global Initiative on Communication.

Ensure that Communication on Progress covers all aspects of About this report the Leadership Model and use, where appropriate, the frame- COP Table work of the Global Initiative on Communication.

Ensure external verification of COPs or seek other methods of About this report verification conducted by external parties.

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