Sustainability Report 2006
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1 2 Contents The Report .................................................................................................................................................. 7 Reading this Report .................................................................................................................................................. 7 Drawing up this Report............................................................................................................................................. 9 About us .................................................................................................................................................... 13 Hera today............................................................................................................................................................... 13 History .................................................................................................................................................................... 13 Services managed ................................................................................................................................................... 15 Mission, Charter of Values and Code of Ethics...................................................................................................... 16 Managing sustainability.......................................................................................................................................... 19 The instruments of governance............................................................................................................................... 24 Dialogue with stakeholders...................................................................................................................... 33 Mapping Hera stakeholders .................................................................................................................................... 33 Engagement initiatives............................................................................................................................................ 34 Results and Value Added......................................................................................................................... 45 Operating results..................................................................................................................................................... 45 Allocation of value added ....................................................................................................................................... 49 Workforce ................................................................................................................................................. 52 Objectives and performance ................................................................................................................................... 52 Breakdown.............................................................................................................................................................. 53 Turnover ................................................................................................................................................................. 56 Diversity and equal opportunities ........................................................................................................................... 58 Training .................................................................................................................................................................. 60 Pay, salaries and bonuses........................................................................................................................................ 65 Health and safety .................................................................................................................................................... 68 Industrial relations .................................................................................................................................................. 70 Internal communication .......................................................................................................................................... 72 Cultural associations............................................................................................................................................... 73 Customers ................................................................................................................................................. 75 Objectives and performance ................................................................................................................................... 75 Breakdown.............................................................................................................................................................. 76 Tariffs and billing ................................................................................................................................................... 77 Service quality ........................................................................................................................................................ 85 Quality of drinking water........................................................................................................................................ 87 Service security....................................................................................................................................................... 91 Customer relations.................................................................................................................................................. 96 Shareholders ............................................................................................................................................. 98 Objectives and performance ................................................................................................................................... 98 Breakdown.............................................................................................................................................................. 99 Corporate Governance and safeguards for shareholders....................................................................................... 100 Distribution of dividends ...................................................................................................................................... 101 Stock exchange share performance....................................................................................................................... 102 Relations with investors and financial analysts..................................................................................................... 104 Financial Institutions ............................................................................................................................. 106 Suppliers.................................................................................................................................................. 108 Objectives and performance ................................................................................................................................. 108 Breakdown............................................................................................................................................................ 109 Operations within local communities.................................................................................................................... 112 Qualification and assessment of suppliers ............................................................................................................ 113 Terms of business ................................................................................................................................................. 114 Supplier relations.................................................................................................................................................. 115 Public Administration............................................................................................................................ 116 Objectives and performance ................................................................................................................................. 116 Breakdown............................................................................................................................................................ 116 Innovation and technological development........................................................................................................... 117 Dialogue with municipalities ................................................................................................................................ 119 Relations with authorities ..................................................................................................................................... 120 Local Communities................................................................................................................................. 122 Objectives and performance ................................................................................................................................. 122 Breakdown...........................................................................................................................................................