ANNUAL REPORT 2016 Our Mission We take care of our community by managing everybody‘s water transparently, efficiently and sustainably. USTAINABILITY S C O M E C M I N T E M L L E E N C T X E Our Values P R O Y C X I N M E I R T A Y P S N A R T 2016 Annual Report Canal de Isabel II Our Commitments To be a benchmark public company and to be the driving force behind 1. the Autonomous Community of Madrid. 2. To work towards managing the full water cycle in Madrid. To lead the way in addressing the challenges facing the sector and any 3. regulatory advances. To maintain, innovate and plan our infrastructures and services, adapting 4. to society‘s future needs. To minimise the environmental impact of all our processes, favouring the 5. efficient use of resources and energy, and pushing towards renewable generation. To increase the satisfaction of our customers and users, ensuring a level 6. of excellence in the quantity, quality and continuity of the service. To ensure affordable and socially responsible rates, encouraging savings 7. in consumption. To strengthen the digital transformation for a more “hands-on” 8. management. To practise rigorous and transparent financial management, ensuring the 9. appropriate economic balance, financial autonomy and sustainability of the company. To support our professionals by attracting, retaining and encouraging 10. talent. 3 2016 Annual Report Canal de Isabel II Canal de Isabel II in 2016 2016 6 January 26 February 8 March Launch of the free mobile app Canal creates a new website Canal de Isabel II with which customers and (http://www. celebrates International users can manage any issues canalciclointegraldelagua.es/en/) Women‘s Day with an related to water consumption, where multimedia content event at the Central Offices like sending metre readings, about the integral water that is directed at all the revising the status of their water cycle can be viewed. The company‘s employees. bill, or reporting breakdowns or website features 360º views, leaks, among other things, and virtual tours of our most receive tips on how to save water. representative facilities, technical documentation, and lots more. 10 March 22 March 9 and 10 April The Autonomous Community As part of the World Water Open days: close to 300 citizens of Madrid reinforces Canal‘s Day celebrations, Canal offers visit Canal‘s key infrastructures. workforce and promotes free tickets for the exhibition In addition to the El Atazar equalisation of working “Cleopatra and the Fascination reservoir, which was visited by conditions, consolidating of Egypt”, hosted by the Arte the company‘s president, the the stability of its employees Canal exhibition centre. Control Centre, the La Reguera by authorising the filling of treatment plant in Móstoles and 162 permanent job positions. the Torrelaguna drinking water Canal and the Works Council agree treatment plant were also opened to harmonise working conditions. to the public. 4 2016 Annual Report Canal de Isabel II 4 May 5 May 8 May The Board of Directors of Canal Organisation of the “Solidarity At the Arte Canal Centre, the de Isabel II appoints Rafael Prieto Coffee” at the Canal Central exhibition “Cleopatra and Martín as the new CEO of the Offices in collaboration with the the Fascination of Egypt” company. In late January, Prieto Spanish Cancer Association. closes its doors after more had taken over the management of Employees donated 895.20 than 200,000 visitors saw the public entity Canal de Isabel II. euros, an amount that was the exhibition and more than matched by the company for a 20,000 children participated total of 1,790.40 euros. in its free workshops. 29 May 1 June 1 June - More than 6,000 runners take Canal announces that it has 30 September part in the 37th edition of achieved an energy surplus in the “Water Race” organised May, beating its own record. Canal applies the seasonal by the Canal Sport Club, in the Canal was able to produce water tariff for all Madrid 5- or 10-kilometre races through enough electricity to guarantee residents in order to the streets of Madrid.. Part of its needs (28,000 MWh) and encourage the sensible use the registration fee goes to also had a surplus of 2,000 of this resource during the the Spanish Federation of Rare megawatts per hour (MWh) to summer period. Diseases. feed into the grid. 5 2016 Annual Report Canal de Isabel II Canal de Isabel II in 2016 11 and 12 15 June 18 June 13 July June Closing ceremony of The awards ceremony of By resolution of the Audit The Oxfam Intermón Canal Sport 2016: the Microvideos contest, Committee and the Board of Trailwalker hundreds of workers organised by Canal Educa, Directors, Canal de Isabel competition is held from the company is held. This initiative sought II filed a complaint with with the participation attended the event, to promote sustainability the Public Prosecutor‘s of Canal employees. which began with the and the environment Office regarding possible awarding of prizes among students in the irregularities in the to the winners of all latter years of primary acquisition of the Brazilian categories and ended school, secondary company Emissão by with several draws and school, baccalaureate its subsidiary Soluciones a concert. and vocational training Andinas de Agua. This programmes in the complaint would give rise Community of Madrid. to “Operation Lezo”, which is being investigated by Spanish High Court No. 6. 27 July 22 August 25 August Canal signs a project with the Fight against fraud: Canal Canal launches a new service Vicente Ferrer Foundation acquires high-resolution that allows citizens to find to install showers and satellite imagery to update information about any toilets in 276 homes in the the inventory of parks, green interruption in the water supply district of Anantapur (India). areas and swimming pools in the the company‘s website. The aim Through Canal Voluntarios, Autonomous Community (about of this initiative is to expand Canal employees will design 2,400 km2) to evaluate the water the company‘s communication and supervise the project. used in each area and detect channels with its customers and More than 500,000 people possible fraud. users. have gained access to drinking water and sanitation thanks to this charitable initiative. 6 2016 Annual Report Canal de Isabel II 4 October 5 October 6 November 15 - 17 November The new Pelayos de la Organisation of the For the sixth consecutive year, the Canal participates in the iWater Presa Drinking Water “Solidarity Coffee” at United Nations Global Compact integral water cycle fair, held Treatment Plant (DWTP), Canal‘s central offices gives an Advanced grade to in Barcelona, announcing its which connects several in collaboration with Canal de Isabel II‘s Annual innovation projects. Some of municipalities from the the Spanish Red Cross. Corporate Report. This is the the themes presented by the so-called “south-west Employees donated highest rating given by the world‘s company‘s technicians include corner” to the supply 601.93 euros, an amount largest voluntary corporate social extreme rainfall management, system, comes into that was matched by the responsibility initiative. This remote detection of fraud, the service. With this initiative, company for a total of distinction recognises the quality “social tariff”, the use of reclaimed Canal completes the 1,203.86 euros. of the information provided by water, the water-energy binomial, connection of the entire companies in their annual reports. the treatment plant as an urban Autonomous Community mine or the management of to the general supply unregistered water. system. 1 December 2 December 20 December Canal launches an alert protocol The Works Council and Canal The Autonomous Community in case of lack of water supply Management reach an agreement of Madrid reports that, for the for customers considered to to return to the historic model and second consecutive year, it will be “sensitive”. There are 7,000 provide the company with its own freeze water tariffs and extend the “sensitive” contracts, including collective bargaining agreement. social tariff to non-contributory hospitals and health centres, The text, which is the result of several pension recipients, a measure that nurseries, schools or universities, months of negotiations, addresses will benefit some 39,000 Madrid hotels, mass consumer industries the commitment expressed by residents. The social tariff implies the or nursing homes. Canal alerts President Ángel Garrido and the free consumption of 25 m3 of water the affected customer 48 hours in demands of workers‘ representatives every two months and the reduction advance of a scheduled interruption to provide a framework that regulates of the fixed quota by 50%. In this way, so that its negative impact can be and improves the working conditions families facing financial problems will minimised. of its 2,500 workers. pay just 4 euros a month for 411 litres of water per day. 7 2016 Annual Report Canal de Isabel II CONTENTS CANAL DE ISABEL II IN 2016 4 MESSAGE FROM THE CHAIRMAN OF THE BOARD 11 MESSAGE FROM THE CEO 12 OUR COMPANY Main figures in the Autonomous Community of Madrid 2016 16 Our business: the water cycle 18 1 Organisation of our public company 25 OUR CONTEXT The value of water 29 AND FUTURE Context in which our sector operates CHALLENGES Internationally 30 2 Us and our sector in Spain 32 Our main challenges 34 OUR MISSION AND Canal‘s missions, values and commitments 39 COMMITMENTS Our stakeholders 40 3 Communication channels with our stakeholders 42 8 2016 Annual