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Sustainability Report / 2018 Transelec Sustainability Report / 2018 Sustainability Report / 2018 1 Transelec Sustainability Report / 2018 Introduction 03 • In 2018 04 • Our General Manager’s vision 05 • Our path over the last ten years 06 Transelec at a glance 06 • 10 years reporting sustainability 07 • Who are we? 08 • Where and how do we operate? 09 • The electricity route 11 Our sustainability focus 12 • Context, challenges and our response 13 • Sustainability Policy 16 • Contribution to Sustainable Development Goals (SDGs) 17 Most important sustainability issues 18 A. Business management, innovation and service quality 19 B. Governance and integrity 34 C. People 45 D. Our communities 54 E. Environment 62 Annexes 71 • About this report and material topics 72 • Sustainability performance summary 73 • GRI Content Index 77 2 Transelec Sustainability Report / 2018 01. Introduction What inspires us? Our Mission To lead the power transmission business in Chile by appropriately meeting the country’s needs and our customers’ requirements by developing efficient, quality solutions and appropriate system operation while upholding high occupational health and safety standards. We create sustainable value for our shareholders and communities, creating relationships of trust and operating sustainably with the environment and with society. 3 Transelec Sustainability Report / 2018 In 2018¬ AWARDS AND DISTINCTIONS IN 2018 Business management, Governance and People Our Communities Environment • Chilean Engineers Association innovation and service quality integrity 2018 National Prize, Companies category. • China Southern Power Grid International • We updated our Sustainability Policy • We made substantial headway with • We renewed four Collaboration • Even considering the fact that we purchased a 27.8% interest in Transelec from and published our Cybersecurity initiatives designed to consolidate Agreements with the local are currently managing 15 projects in This award was presented to the Canadian fund Brookfield Infrastructure Policy. our Safety Culture Model with OHS communities of Rucaco, Nogales, development stages, for the second Transelec for our contribution to Partners in March. plans designed with a preventive Juan Huenchumil Quintupil and consecutive year we had no incidents • We extended our Crime Prevention focus and a focus on critical risks. Polpaico. or fines due to non-compliance with the Chile’s development and its • We commissioned the new 2 x 220 kV Lo Aguirre Model to the Transelec Group We achieved the best accident index environmental commitments. The inhabitants’ quality of life. – Cerro Navia high voltage power transmission operation in Peru. in the history of Transelec. • Our reputation with our same record holds true for our assets in line in November in order to strengthen the communities reached a "Good" operating stages. power transmission system in central Chile. • We hosted the first meeting • We implemented our internal level based on the Reputation • Third place in the PROhumana between directors and collaborators. recruitment portal in order to Institute scale. • Our preventive focus prevented • During the tender for the National Electricity The Board of Directors explained facilitate internal mobility at intervention in 23.7 hectares of native Corporate Sustainability System (SEN) Upgrade Plan, Transelec was how it works and its responsibilities Transelec. • Thanks to an early citizen forest in the Pichirropulli-Tineo Project Ranking awarded the project for the new aerial crossing to the different Committees and participation process with an which reduced the original cutting at Canal de Chacao, a project that includes collaborators shared different • We implemented our diversity indigenous focus, agreements surface area by 22%. We were one of seven companies a crossing spanning between the district of projects of interest under way at the and inclusion policy and strategy were reached with three first that received awards for Llanquihue and Isla Grande de Chiloé, as well as company. and started our “Adding Energy” nations communities during • The Innovation Program enabled us a new substation at Ancud. program. the Pichirropulli – Tineo project to develop an application to ensure their outstanding sustainable • We continued with the training environmental evaluation in a period environmental compliance at our management performance. • The “2018 Connecting Conversations” cycle, program for all collaborators • We successfully reached an of six months. This was the fastest operations. which was hosted in Santiago, Concepción and regarding the Crime Prevention agreement regarding a new indigenous citizen participation Talca, addressed challenges and opportunities Model, Compliance Officer duties, collective contract with the process ever completed in Chile. • We launched the “ConSuma Conciencia” • Innovación Best Place to for the energy of the future. use of the Ethics Hotline and Transelec S.A. Workers Union Environmental Responsibility Program guidelines for preventing corruption, (SITRAT), which represents 67.1% • Our “Ideas with Energy” education to encourage collaborators to take care Innovate ranking • We achieved 40 initiatives in our innovation among other issues. of all personnel employed by the program celebrated its 10th of energy and material resources while We were ranked among the 50 portfolio and we were incorporated as members Company. anniversary. The program has raising awareness regarding the impact of the UC Center for Innovation. benefited over 6,000 children, of human activity on the environment. most innovative companies in • We conducted the fifth OHI providing education about Chile. This award is presented by • We undertook seven digital transformation (Organization Health Index) survey renewable energy and innovation. • We have started to study the impacts of projects in order to strengthen safe and reliable and our score came to 80 points, and vulnerability to climate change for GFK Adimark and the Universidad management of our operation and we have placing us in the upper tenth decile • Seven social investment projects our infrastructure, as well as appropriate Adolfo Ibáñez Center for continued to implement the Zero Failure Culture for this survey at a global level for regarding access to energy and mitigation and adaptation measures initiative, which aims to reduce the outages rate the second time in a row. renewable energy helped us to move to ensure power supply security and Innovation, Entrepreneurship and and consequently provide a better service to our forward with our promise to “Unite continuity together with experts from Technology (CIET). customers. Chile with Energy”. Pontificia Universidad Católica de Chile. Public-private working tables, theft detection • • In a one-of-a-kind initiative for Chile, technology and a campaign for raising Transelec, SURA and VTR created a awareness regarding electrical risks for the carpooling system (Súbete) for its community were the different initiatives we collaborators based on a smartphone implemented in order to ensure power supply application. continuity and contribute to public safety in our surrounding area. 4 Transelec Sustainability Report / 2018 Ten years have gone by since Transelec of new business models, incorporating new created by legislation, be developed in keeping published its first sustainability report. How stakeholders and allowing stakeholders with stringent safety and quality standards Our General has the company changed throughout this currently operating in the sector to take on in order to satisfy customer expectations. ¬ time period? new roles. Our commitment to research, innovation and development (R+I+D) is therefore absolute, in Ten years ago we were starting a lot of things At another level, digital transformation is now Manager’s Vision that our success and survival depend on it. and moving into a new ownership scheme. an imperative for us. It is the engine that will We were a fledgling company. We are now a enable us to stay at the lead of the industry and What are your priorities in terms of consolidated company and run risk of falling to ensure our success in tomorrow’s electricity sustainability? prey to our own success. markets. One priority in this area is service quality. Three government administrations have Adapting to climate change is another major This means providing uninterrupted service come and gone. Chile has matured and our challenge. The impact of acute, chronic effects by means of a robust system, pillars for the shareholders have changed. Capital from the is increasingly evident and this affects the way sustainability of our business. Although other side of the world was injected into the we see the business and our current and future Transelec has an extremely low interruption company. We are currently experiencing a deep- operations. time record for power supply in Chile (3.3%), we rooted transformation of the power market In addition, society is more and more demanding hope to bring this level even lower in order to stemming from technological change and global and citizenry is increasingly empowered. provide a better global standard, applying smart electrification. Transelec has therefore consolidated a digital tools, better managing risk and further These are all opportunities, challenges different mutually beneficial community relations developing this focus in our organizational from what we faced ten years ago. All of this model that considers early participation culture. leads us to make a strong
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