CORPORATE SOCIAL 2016 RESPONSIBILITY 2 Corporate Social Responsibility 2016
2016 Corporate Social Responsibility Report// EULEN Group 3 Page 1 Message from the President 6
2 Message from the CEO 8
3 About this report 10 - Principles that govern this report 12 - Identification of material aspects and definition of contents 14 - Dialogue with our Stakeholders 18
4 EULEN Group 20 - EULEN Group Profile 21 - Our principles 25 - Business model and creation of value 27 - The EULEN Group in figures 28 - Management of risks and opportunities 37 - Legal Compliance and Code of Ethics 40 - Management responsibility 43
5 Strategy and “great company” sentiment 46 - Sustainable social and economic development 47 - R&D&I applied to processes and services 49 - Protection and respect for the environment 51
6 Main factors of success 54 - Cost efficiency 56 - International expansion 57 - Development of new lines of business 58
4 Page
7 Human capitals: our main asset 60 - Employment in EULEN Group 63 - Diversity and integration 70 - Development of our professionals 74 - Health, safety and well-being 78
8 Creation of value beyond our company 84 - Relationship with customers 88 - Responsible management of the supply chain 91 - Relationship with society 95
9 Management of the environmental impact of EULEN Group 98 - Commitment to Environmental Management 101
10 Our contribution to the community 110 - Labor integration and training of people at risk of social exclusion 114 - Support of social and sustainable projects 116
ANNEXES 119 Awards and Distinctions 120 External certifications and accreditations 122 GRI G4 Content Index 125 Independent assurance report 131
2016 Corporate Social Responsibility Report// EULEN Group 5 Message from the President
“Our strategy and commitments would not be truly valued by EULEN and our stakeholders if we were to not continue on the non-negotiable track of sustainability”.
It is my pleasure to present you with the This year, we also presented the 2016- Corporate Social Responsibility Report of EULEN 2021 Strategic Plan, which has required a Group for financial year 2016. Once again, comprehensive internal process of analysis and we find ourselves at our annual meeting with thought. After we made it through the long crisis responsibility, transparency and excitement period suffered by our country in recent years, to share our achievements as well as our which EULEN managed reasonably well thanks improvement points with you all. We are aware to its strength, diversification of services and that we only deserve your respect and trust if we internationalization, we now face the next five are fair, credible and honest. years with great enthusiasm.
It has truly been an important year in the history We have laid down several objectives in this of the company. It is now fully managed by period, all of them important for our future. We the second generation of our family, and the can sum them up as the following: Achieve true third generation is progressively deciding to standardization of our production and support join the company, following the saying that has processes, tackle digital transformation in our always defined us: “Experience is the mother of businesses, and promote the management values knowledge”. In other words, we like to put into and style of EULEN. By doing so, we will achieve practice our idea of what we think is the best way the true differentiation of our offer in comparison to get to know a company: work in all the job with our competitors. This will allow us to achieve positions you can, from the most basic ones to the established sales and margin economic senior management. objectives.
6 Following the standard that has been customary increase our presence in countries like the United in our business history, and that has allowed us States, Chile or Peru. We intend to go from €388 to keep our accounts permanently balanced, we million in sales outside Spain in 2016 to €740 aim to approach our objectives from a growth million in 2021, which represents an approximate position that is fundamentally organic, taking increase of 91%. Therefore, the International advantage of the synergies provided by our Area, which currently accounts for 25.5% of the extensive portfolio of services and solutions, group’s sales, will now have a weight of 32.9%, a which is quite possibly unique in the market, third of the total. and the great relationship we have with our customers. A healthy growth from within, which This strategy and these commitments would not is based on the knowledge of customer needs, be truly valued by EULEN and our stakeholders if of possibilities for improvement and increased we were not to continue on the non-negotiable efficiency in operations. And also based on our track of sustainability. We are going to continue ability to approach the analysis of these facts with to do this. We are aware of the role that a creative vision, trying to go beyond the usual companies play in achieving the ambitious thought pattern. and necessary goals of the 2030 Agenda for Sustainable Development. Consequently, we will If we analyze the history of EULEN, its creative make every effort to ensure that our contribution and innovative profile has been a constant to their fulfillment is relevant. pattern in the steps we take. I am proud to say that we have always been one step ahead in the Essentially, we do this by reducing our water world of services, whether giving professional and energy consumption, thus reducing our and intensive training to our cleaning operators, carbon footprint year after year, supporting or technicians, security guards and other staff in the assuming initiatives to help children and work 60’s, when this was unusual, or starting new and inclusion of the most vulnerable people, carrying unusual business lines, such as environmental out training actions for social groups who have and radiological protection, highly specialized not had the opportunity to receive it, signing electro-medical services or complete solutions cooperation agreements with governments to from the point of view of security convergence. assist them in achieving their development and inclusion objectives, or supporting local and Nowadays, we continue along the same lines: minority sports. We hope that they feel as though our Research, Development and Innovation EULEN is part of society and that we care about department, keeping our minds active and in it, because this is what we try to do each and close collaboration with specialists in each activity every day. We try to grow and advocate for rights, area, always attentive to the needs of our current freedom and well-being. Kind regards, and potential customers, generates several projects and services each year. The excitement of designing new services is only comparable to the enthusiasm of seeing them come true.
However, far from just settling with the option of internal growth, we want to complement this with the acquisition of other companies that María José Álvarez Mezquíriz give us a truly interesting added value. For this Executive President purpose, we have set aside an important budget. Our intention is to evaluate, in a special way, companies that contribute to our businesses with a technological view, as well as with operations in the international area. By doing this, our aim is to
2016 Corporate Social Responsibility Report// EULEN Group 7 Message from the CEO
“Increasingly, the future must be linked to international expansion. We are aware of the fact that we must reinvent ourselves constantly”.
Dear customers, dear friends: Every time I have to increased by more than €52 million (Δ 3.56%), face the challenge of trying to summarize a year of reaching €1,518 million, and the operating income our business in a couple of pages, I have a doubt: rose by €6.26 million (Δ 34.95%) reaching €24.18 million. Is it possible to condense twelve months’ worth of work, challenges, successes, dismay and joy in The figures mentioned above reaffirm my a few pages? And, above all, can we do it in a way conviction that we are on the right path and that that is interesting to anyone who reads them to we are moving forward with enough solvency. know a little more about EULEN, what concerns Our sector, the one for the provision of services us, how we do it, what our intentions are for the to companies, suffers the changes experienced future? The answer that always comes to mind is by our customers in the same proportion. For this the same one: we will try. And you will decide if we reason, we are a good meter of the performance have succeeded. of economy. I would like to start by telling you that this 2016 One of the first symptoms of recovery is probably has been a reasonably positive year, especially reflected by Temporary Work activity, which once considering that we, the Spanish nationals, were again experienced a more than significant growth just leaving what has surely has been our most in 2016 with a rise of 16.88%. Security is also difficult economic period of the last decades. recovering, albeit slowly, from the large decline in The Group significantly improved its results sales experienced between 2010 and 2014. This compared to the previous financial year: sales year, security has grown by 3.25%.
8 Both activities, as well as the increasingly However, EULEN is essentially a company formed powerful development of our businesses in by people. We are concerned about their well- the International Area, have made possible being, their training, the possibility of reconciling the important growth in sales that I referred to family and professional life. We also care for the earlier. construction of a safe working environment, where there is no place for bullying, where This year, the Group has made public its women and men are increasingly equally Strategic Plan for the period 2016-2021. In represented. it, we can see the importance we give to the geographical diversification of our sales, and We are totally and actively against child labor in to the implementation of new technologies in all of the countries where we operate, and we support of services. These are probably the two work tirelessly to include those who have it most main influences that currently enable us to be difficult in the labor market. We provide work the first services multinational in Spain, and one for former prisoners, women who are victims of of the largest in the world: people working in gender violence, prostituted or trafficked, people diverse and multicultural environments, aided by living with HIV, former elite athletes and disabled the best ad-hoc technology. people, allowing them to be self-sufficient and live with dignity. Increasingly, the future must be linked to international expansion. Each day, markets In Spain, our agreements with the Fundación become more competitive and we have to look Integra, the Spanish Red Cross, Caritas, for new niches that allow us to improve our Secretariado Gitano or Trabajando en Positivo, margins. The great advantage is that we perfectly are increasingly productive. The foundation know the conditions of the local markets because Fundación Calicanto in Panama, Gisell Eusebio in we are actually there, on-site; we do not operate the Dominican Republic, the Institute for Social remotely, we like to be close to our customers, Economy in Colombia, the Ministry of Women and this allows us to be in the state of the art of and Vulnerable Populations in Peru, the National each of the services we provide. Institute of Youth in Chile, and the Make-A-Wish Foundation, are also partners and friends in the We are aware of the fact that we must reinvent common path towards solidarity and the drive ourselves constantly, and for this reason, we to reduce inequalities. Along with them, we make the re-engineering of services our identity. enrich our human side, receiving much more Creative concern leads us to launch new services than we give. each year, to improve current ones or discard others, maybe temporarily, if we believe it is not Finally, I would like to thank all our employees, the right time yet. customers, suppliers and partners for their engagement in this exciting business venture. It is EULEN PROACTIVA, probably the most relevant on its way to being 55 years old, and it intends to project of 2016, was created to improve the keep going for many decades to come, with their global contract of services we provide to a support and with our work and enthusiasm. customer in terms of quality, cost, sustainability and control, offering new service proposals, Kind regards, integration of other services, technological advances, new management models and even new forms of joint business collaboration. We are implementing it with large customers with a satisfactory result. Therefore, we will continue to expand our target customer base in the coming Juan Ramón Pérez Sancho months. CEO
2016 Corporate Social Responsibility Report// EULEN Group 9 Jorge Dumitrache - SPAIN- Dumitrache Jorge
About this Ü Principles that govern this report Ü Identification of material aspects and definition of contents report Ü Dialogue with our Stakeholders (G4-22 G4-23)
10 (G4-22, G4-23) The preparation and publication of this Corporate Social Responsibility Report (hereinafter CSRR) aims to respond to the demand for information from EULEN Group’s stakeholders.
The 2016 CSRR gathers the main impacts and activities of EULEN Group through indicators of environmental, social and governance performance, of the results obtained and of the challenges that the Company faces in future.
In general, the performance indicators included in this Report are global; this is, for the Group in all the countries where it operates. When this is not the case, it is specifically indicated. This is a consequence of the company’s efforts to standardize functions and processes in order to move forward in the control and consolidation of information at a corporate level.
To make its understanding and reading easier, the scope corresponding to each piece of data is indicated in the corresponding section, table or diagram, as well as the necessary reformulations on information from previous years.
Continuing with the commitment to report according to the guidelines set forth by the Global Reporting Initiative (GRI), the 2016 CSRR has been prepared, for the second time, according to the G4 GRI Guidelines in accordance with the Comprehensive option. The 2016 CSRR has also been confirmed by GRI according to the “Materiality Disclosure Service”.
In line with the compliance with the principles that determine information quality, it is important to mention that, yet another year, EULEN Group has undergone a review process performed by an independent external expert. The verification scope for each of the reported indicators can be checked in Annex II: GRI G4 Content Index In any case, the geographical scope of the review refers to data from Spain, just as in previous years.
As a result of the latest updates in the area of sustainability, which took place at the end of 2015, EULEN Group started to analyze its contribution to the achievement of the Sustainable Development Goals (hereinafter SDGs) for the drafting of contents of the CSRR. In this sense, throughout the Report there are examples that show the direct relationship between EULEN Group’s activity and the different SDGs.
Currently, the Group is moving towards the standardization of criteria and systems for the transmission and publication of information. By doing this it intends to offer its stakeholders an entirely global performance.
2016 Corporate Social Responsibility Report// EULEN Group 11 PRINCIPLES THAT GOVERN THIS REPORT (G4-18) Principles related to the quality of this report
BALANCE The vision on the performance of the EULEN Group, which can be analyzed 1 by any stakeholder in the CSRR, is complete. This is because all indicators show both positive and negative COMPARABILITY impacts. The EULEN Group’s reporting path enables readers to assess the evolution of the company’s overall performance and management in 2 recent years. ACCURACY One of the challenges that EULEN Group faces is the accuracy of the 3 information. Therefore, in cases where some kind of estimation was needed, TIMELINESS it has been appropriately indicated. EULEN Group published its Corporate Social Responsibility Report every year. Currently, the company is working on moving the 4 publishing date forward. CLARITY The publication of the CSRR is a chance to access the wide range of Stakeholders of the company. 5 Therefore, it tries to meet their RELIABILITY expectations and needs in the most The information contained in the clear and concise way possible. 2016 CSRR has been subjected to an independent external verification by KPMG, just as in previous years. EULEN Group believes that 6 this process is an opportunity to improve the quality of its information systems.
12 Principles related to defining the contents of this report
Participation of Stakeholders
As part of the materiality process carried out in 2016, a stage of external evaluation of the material aspects was included through interviews with different stakeholders that have 1 a relationship with EULEN Group and whose feedback has been key for the Company to meet the needs and expectations of these groups.
Sustainability context
Based on the premise that sustainability impregnates the services that EULEN Group offers to society, the CSRR aims to reflect this premise, showing the information through the 2 impacts it generates in society.
Materiality
In 2015, EULEN Group carried out the formation of the process to identify the material 3 matters, including a first approach to the value chain of the company. To continue this exercise towards a greater depth of issues at a local level or in significant geographies, the Group has decided to perform the biannual update of this year. Therefore, a review of the material aspects will be carried out in 2017.
Exhaustiveness
Our company has been growing steadily, both regarding its service portfolio and the geographies where it operates. Consequently, the company works on the standardization 4 of the application of common criteria and procedures. For this reason, and despite the fact that information on all material indicators under exhaustive reach, the company has started to report the available information with a global coverage.
José Mª Vecino, Javier Pedroviejo, Julián Marín y Héctor Dacosta -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 13 IDENTIFICATION OF MATERIAL ASPECTS AND DEFINITION OF CONTENTS (G4-18 G4-19 G4-20 G4-21)
Financial year 2015 was an important turning point for EULEN Group in terms of its performance in Corporate Social Responsibility. Along this line, the materiality process was formalized incorporating a new methodology that includes additional variables to consider. The Company has decided to update the material aspects on a biannual basis, so in financial year 2017, this will be carried out for the second time.
Another of the determining factors in 2015 was the characterization of the company’s value generation chain. This analysis process is the starting point for the identification of the material aspects in the different levels of the organization, in line with the G4 version of the GRI recommendations.
Stage Stage 1 2 First approach to the Value Generation GRI Sustainability Reporting Guidelines Chain of EULEN Group in order to know version G4. how the company’s actions and activities Inclusion of other issues identified during are developed, generating value for its the analysis of external and internal customers. information.
Value chain Identification of design CSR issues
Stage Stage 3 4
As a result of the process, we attain a double-entry matrix that shows both the importance from an internal perspective and the relevance derived from the analysis of external sources.
External relevance of Internal prioritization the issues + of the issues It is important to bear in mind that the end objective of the materiality process is to identify potential opportunities or risks to the reputation and trust that stakeholders have placed in EULEN Group. 14 Inmaculada Aragonés, Xavi Sanfélix y Elena Fernández -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 15 (G4-19, G4-20 y G4-21)
As a first approach, the impacts that are generated in the value chain have been identified according to the eight main issues that emerged from the materiality analysis:
R&D&I
Environment Impacts generated in each point of EULEN Group’s value chain, Local Communities broken down by material aspect. Employees
Corporate Governance
Suppliers EULEN Group Customers
Advanced Work Practice Ethics and Integrity Relationship with Customers Social Commitment Efficient Environmental Management Extra-financial Objectives Corporate Governance Policies Sustainable Products and Services
16 (G4-19, G4-20 y G4-21) The external analysis consisted of press searches, information published by opinion leaders, benchmarking of companies similar to EULEN Group and interviews with different stakeholders (employees, customers, suppliers and organizations with whom the Group has some kind of relationship). As far as EULEN Group is concerned, the different company management departments prioritized each of these issues, giving rise to a matrix that reflects those that must be given special attention by the company:
MATERIALITY MATRIX Top 0 Material aspects for EULEN Group
Di ersity gender, disability, ethnicity, etc
Employee training In estment and impact on Health and safety of and education communities where the group operates employees and contractors
Optimization of resources
Energy efficiency Integration of ESG aspects in and reduction of emissions the business model and alue generation chain of the group Optimization of services and customer satisfaction management Fight against corruption Rele ance for sta eholders
Reinforcement of the Go erning Body’s responsibilities
- Rele ance for EULEN Group
EULEN team at La Sirena Romana -DOM. REPUBLIC-
2016 Corporate Social Responsibility Report// EULEN Group 17 DIALOGUE WITH OUR STAKEHOLDERS (G4-24 G4-25 G4-26 G4-27) In 2015, a good deal of work was done to get to know the most relevant issues for the Company —the Materiality Analysis—, which helped to detect the aspects that mattered the most to our Stakeholders.
Since then, progress has been made throughout 2016 in terms of involvement of all company levels. The group’s aim is to try and give response to these issues through the several meetings that are held with all of them, with different frequency.
Below is a chart with the different communication channels, face-to-face meetings and discussion and reflection tables where all issues related to material matters are dealt with. We must not forget that final decisions are made, where appropriate, by the ad-hoc Committees.
Customers
Complaints and claims Employees channel: Continuous
Meetings with employee Satisfaction surveys: Annual representatives: Continuous Direct contact: e-mail and phone Surveys: Monthly call: Daily Interviews with superiors: Annual Internal magazines: Quarterly
Suppliers
Evaluation surveys: Annual Interviews: occasional Direct contact: e-mail and Shareholders phone call: Daily
Ordinary/Extraordinary General Meetings: Annual/occasional Specific publications: occasional Corporate website: Continuous
Society
Participation in associations: Continuous Participation in specialized conferences and seminars: occasional Projects with NGOs: Continuous
18 Benjamín Caballero -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 19 Diego Jiménez -SPAIN-
Ü EULEN Group Profile Ü Our principles Ü Business model and creation of value Ü The EULEN Group in figures EULEN Group Ü International presence Ü Management of risks and opportunities Ü Legal Compliance and Code of Ethics
20 Ü Management responsibility EULEN GROUP PROFILE (G4-17)
With 54 years of experience, EULEN Group is a reference company in the provision of general services for companies and Public Authorities. Our activity covers a wide range of areas, with the common denominator of specialization: cleaning services, private security, auxiliary services (logistics, general and telemarketing), Facility Services & Management (FS&M), social and healthcare services, maintenance, temporary work and environment-related services.
The above services are broken down into approximately 60 lines of activity that attempt to cover the full spectrum of services that a customer may need, except those that are their main corporate purpose. These services range from energy efficiency to the management of social and healthcare centers, through the agro- food and pharmaceutical, cleaning or the design, installation and maintenance of security systems.
We are, therefore, a Group characterized by offering labor-intensive services, supported by the most advanced technology, designed and organized from the specialization of each of them. And also with quite a large part of self-execution, subcontracting only very specific small areas. This way, we manage to preserve the culture and values of EULEN throughout the life cycle.
Since it was founded in 1962, the company has continued to grow outside its borders, achieving a direct presence in 14 countries in financial year 2016.
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EULEN and ile ra il 1 80 1 87 ra ia 1 7
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between formed GMBH: Company * IDEAFM
2016 Corporate Social Responsibility Report// EULEN Group 21 EULEN Group is a family-owned company founded by David Álvarez Diez in 1962. It is comprised by 100% Spanish capital, incorporated as a Group of Companies with EULEN, S.A. as its parent. In recent years, the company has grown at a constant pace, mainly in the American continent. The international expansion started in 1997, and EULEN Group is currently present in Spain, Portugal, USA, Colombia, Costa Rica, Chile, Jamaica, Mexico, Panama, Peru and the Dominican Republic, the United Arab Emirates, Oman and Qatar.
EULEN GROUP COMPANIES AROUND THE WORLD Portugal EULEN PORTUGAL DE SEGURANÇA, S.A. Colombia ALFALIMPA, SERVIÇOS GERAIS EULEN COLOMBIA, S.A. FLEXIPLAN RECURSOS HUMANOS E EMPRESA DE TRABALHO TEMPORARIO, S.A. United States
EULEN AMERICA,INC AMERICAN SALES AND MANAGEMENT ORGANIZATION LLC
Jamaica Panama EULEN PANAMÁ, S.A. SEGURIDAD EULEN, S.A. Spain EULEN, S.A. EULEN SEGURIDAD, S.A. Oman FLEXIPLAN, S.A. E.T.T EULEN SERVICIOS SOCIOSANITARIOS, S.A. COMPAÑÍA INTERNACIONAL DE PROTECCIÓN, INGENIERIA Y TECNOLOGÍA, S.A. (PROINSA) Mexico INSTITUTO EULEN DE FORMACIÓN, S.A. EULEN INTEGRA, S.A. EULEN MÉXICO, S.A de C.V. CODELCO MERCANTIL, S.A. EULEN MEXICO DE SERVICIOS, S.A. EULEN CENTRO ESPECIAL DE EMPLEO, S.A. EULEN DE SEGURIDAD PRIVADA, CORUMBA PATRIMONIO, S.L. S.A. de C.V. EULEN FLEXIPLÁN, S.A. de C.V. Qatar / UAE EULEN MIDDLE EAST, LLC EULEN MANAGEMENT & FS Costa Rica EULEN COSTA RICA, S.A. SEGURIDAD EULEN, S.A. Dominican Chile Republic GRUPO EULEN CHILE, S.A. EULEN CHILE, S.A. EULEN DOMINICANA DE EULEN SEGURIDAD, S.A. SERVICIOS, S.A. INSTITUTO EULEN DE EULEN DOMINICANA DE Peru CAPACITACIÓN, S.A. SEGURIDAD, S.R.L. EULEN DEL PERÚ, S.A. EULEN SOCIOSANITARIOS, S.A. EULEN DEL PERÚ DE SERVICIOS COMPLEMENTARIOS, S.A. EULEN DEL PERÚ DE SERVICIOS GENERALES, S.A. EULEN DEL PERÚ SEGURIDAD, S.A.
22 EULEN Group's top international markets are Chile, the US and Mexico, which account for 60% of employees and 67% of sales outside Spain.
Portugal EULEN PORTUGAL DE SEGURANÇA, S.A. Colombia ALFALIMPA, SERVIÇOS GERAIS EULEN COLOMBIA, S.A. FLEXIPLAN RECURSOS HUMANOS E EMPRESA DE TRABALHO TEMPORARIO, S.A. United States
EULEN AMERICA,INC AMERICAN SALES AND MANAGEMENT ORGANIZATION LLC
Jamaica Panama EULEN PANAMÁ, S.A. SEGURIDAD EULEN, S.A. Spain EULEN, S.A. EULEN SEGURIDAD, S.A. Oman FLEXIPLAN, S.A. E.T.T EULEN SERVICIOS SOCIOSANITARIOS, S.A. COMPAÑÍA INTERNACIONAL DE PROTECCIÓN, INGENIERIA Y TECNOLOGÍA, S.A. (PROINSA) Mexico INSTITUTO EULEN DE FORMACIÓN, S.A. EULEN INTEGRA, S.A. EULEN MÉXICO, S.A de C.V. CODELCO MERCANTIL, S.A. EULEN MEXICO DE SERVICIOS, S.A. EULEN CENTRO ESPECIAL DE EMPLEO, S.A. EULEN DE SEGURIDAD PRIVADA, CORUMBA PATRIMONIO, S.L. S.A. de C.V. EULEN FLEXIPLÁN, S.A. de C.V. Qatar / UAE EULEN MIDDLE EAST, LLC EULEN MANAGEMENT & FS Costa Rica EULEN COSTA RICA, S.A. SEGURIDAD EULEN, S.A. Dominican Chile Republic GRUPO EULEN CHILE, S.A. EULEN CHILE, S.A. EULEN DOMINICANA DE EULEN SEGURIDAD, S.A. SERVICIOS, S.A. INSTITUTO EULEN DE EULEN DOMINICANA DE Peru CAPACITACIÓN, S.A. SEGURIDAD, S.R.L. EULEN DEL PERÚ, S.A. EULEN SOCIOSANITARIOS, S.A. EULEN DEL PERÚ DE SERVICIOS COMPLEMENTARIOS, S.A. EULEN DEL PERÚ DE SERVICIOS GENERALES, S.A. EULEN DEL PERÚ SEGURIDAD, S.A.
2016 Corporate Social Responsibility Report// EULEN Group 23 The internationalization strategy of EULEN Group involves the formation of partnerships to reach other geographies where it is not currently present. For this reason, they incorporated the Berlin-based company ideafm GmbH in 2015, 50% owned by the prestigious German Group DUSSMANN.
This operation, alongside the agreement with other partners, allows EULEN to provide Facility Services & Management (FS&M) in 32 countries around the world, including practically all of Europe and America, as well as China, Vietnam, UAE, Qatar and Oman in the Asian continent.
• Austria • Lithuania • Belgium • Luxembourg • Czech Republic • Morocco • Estonia • Poland • France • Portugal • Germany • Romania • Hungary • Spain • Ireland • Switzerland • Italy • United Kingdom • Latvia
• China • Hong Kong • Argentina • Vietnam • Brasil • Colombia • Abu Dhabi • Costa Rica • Dubai • Chile • Oman • Dominican Rep. • Qatar • Jamaica • Mexico • Panama • Peru • U.S.
Geographical scope of ideafm GmbH.
24 OUR PRINCIPLES
EULEN Group is governed by a series of values that arise from its mission and vision. These values are applied throughout the Company, and they must lead its behavior in the performance of their professional activity. These Mission principles include respect for The provision of general services that human rights and current labor and society demands based on the creation environmental standards, the adoption of value, ethical and social commitment, of a proactive attitude of dialogue and and respect for the environment transparency towards all stakeholders.
Vision The delivery of general quality services that contribute to the improvement of development and well-being of people.
Values • Corporate Social Responsibility. • Economic results. • Respect for the environment. • Workers’ development. • Feeling of belonging.
2016 Corporate Social Responsibility Report// EULEN Group 25 Below is the Group’s Decalogue of Corporate Responsibility Principles, which integrates the Company’s Mission, Vision and Values, and some key indicators that illustrate performance in these areas:
Principles KPI’s
Faith in private initiative, as the engine of the eco- EULEN contribution: 1 nomy and a source of collective prosperity. € 488.8 Million
2 Respect for the current laws. No. of breaches/Penalties: 0
Sensitivity to social deprivation and actions based No. of breaches of the Code of on criteria of professional ethics, guidelines to our 3 Ethics: behavior. 0
The constant attention to the demands that society No. of countries where EULEN has makes for our services, the cornerstone of our 4 a commercial presence: business plan. 32
Customer satisfaction, with a commitment to quality, 5 our objective when offering our services and legiti- Satisfaction surveys results: 7.71 mate justification for business profit.
Creation of new marketing brands: The vocation of creative innovation and leadership, 6 characteristic traits of our culture. Emission offsetting (EULEN Forest)
Maintaining economic solvency and effective mana- 7 gement of our resources, foundations of our econo- EBITDA: € 38.4 Million mic project and guarantee for its continuity.
Joint responsibility in the management and orde- No. of Committees directly red delegation of duties, bases of our management 8 dependent on the Management: style. 4
The training and development of our employees, active policies for reconciling work and family life No. of training hours: 9 611,836 and respect for the principle of equality, pillars of Hours of training/employee: 7.1 our Human Resources policy.
Respect for the environment and the application Carbon Footprint reduction: of preventive measures that guarantee the health -1.5% of direct emissions 10 and safety of our employees, the framework for the reduction compared to 2015. development of all our activities.
26 BUSINESS MODEL AND CREATION OF VALUE
Integrated Global solutions for HR Services and Employment
FS&M Cleaning Au iliary ser ices Maintenance The En ironment Public health services Security EULEN Group Temporary Wor Employment agency Security consulting Relocation agency Sur eillance Staff recruitment and HR consulting services Security systems Training for companies Integration into the job market Intelligence Cyber security Comprehensi e Security Control Centre CCSI Critical Infrastructure Protection Airport Security Maritime safety Telecare Security patrols Home Care *Remote video surveillance Assistance Education, leisure and free time Social and Healthcare Training Assistance and reintegration Management of centers Innovative services Ser ices for companies Hospital healthcare and home healthcare assistance Emergencies, catastrophes and medical transport
Silvia Lopera -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 27 THE EULEN GROUP IN FIGURES
From the materiality analysis, a series of key indicators have been identified that summarize the performance of EULEN Group in the three dimensions —economic, social and environmental— on which Corporate Responsibility is based. Below we can see the main figures and their relationship with the Sustainable Development Goals defined at the United Nations Conference of Parties COP21 (Paris, December 2015).
SOCIAL DIMENSION
INDICATOR 2016 SDGs
EMPLOYEES 86,206 CREATION OF NET GLOBAL EMPLOYMENT OPEN-ENDED -324 CONTRACTS SPAIN 53.38%
VOLUNTARY TURNOVER RATE SPAIN 12.04%
DIVERSITY IN EULEN GROUP ESPAÑA 3.01% People with disabilities
TOTAL NUMBER OF NATIONALITIES 117
EQUAL OPPORTUNITIES Women in Management positions 29.7% Women in workforce 53.3%
TRAINING OFFERED (hours) 611,836
Hours of training per employee 7.1
ABSENTEEISM INDEX 0.6%
WORK ACCIDENT SEVERITY INDEX 0.74‰
WORK ACCIDENT INCIDENTS INDEX 56.6‰
INVOLVEMENT OF EULEN IN THE DEVELOPMENT 14 OF LOCAL COMMUNITIES IN COUNTRIES WHERE IT IS PRESENT
28 ECONOMIC DIMENSION (DATA IN THOUSANDS OF EUROS)
INDICATOR 2016 SDGs
SALES 1,517,932 America 366,954 EMEA 1,150,978
EBITDA 38,374
NET RESULTS 14,086
TOTAL CONTRIBUTION 488,784 - Tax contribution: 224,665 - Social Security contribution: 264,119
TOTAL PURCHASE VOLUME 122,000
LOCAL PURCHASES 48%
ENVIRONMENTAL COSTS AND INVESTMENTS IN SPAIN 1,570
R&D&I PROJECTS (SPAIN) 13
2016 Corporate Social Responsibility Report// EULEN Group 29 ENVIRONMENTAL DIMENSION
INDICATOR 2016 SDGs
WATER CONSUMPTION (m3) 12,931
GENERATION OF WASTE (Tm) 988 Hazardous waste 41 Non-hazardous waste 947
FUEL CONSUMPTION Diesel (l) 43,696 Natural Gas (m3) 39,459 Fleet vehicles and machinery (l) 4,142,577
CARBON FOOTPRINT (tCO2eq) 13,133 Direct emissions (taking into account fluorinated gasses) Indirect 11,201 emissions (scope 2) 1,084 Indirect emissions (scope 3) 848
Juan Carlos Areales -SPAIN-
30 In July 2016, the nonprofit organization Bertelsmann Stiftung and the UN Sustainable Development Solutions Network jointly produced the SDG Index and Dashboard - Global Report, which shows the sustainable performance of 149 countries based on the Sustainable Development Goals.
EULEN Group is active in 14 countries, located within the index with certain criticality regarding the achievement of the Sustainable Development Objectives. As a result, the Company shows its commitment to establish itself in countries where business opportunities and a wide margin of social and environmental contribution coexist. This is part of its CSR Strategy and the roadmap for the contribution to sustainable development.
POSITION 25º 30º 34º 42º 49º 53º 55º 56º 70º 74º 77º 81º 91º 92º
a o a .S. al tar es U at xic eru Spain Chile P Qa ta Ric anama Oman Portug Me P Jamaic epublic Cos Colombia ab Emir an R
ed Ar Dominic Unit
Source: SDG INDEX AND DASHBOARDS - GLOBAL REPORT; Bertelsmann Stiftung; July 2016.
By way of example, the table below shows the performance of three countries in Latin America where EULEN Group has a significant presence, in relation to specific indicators. Through its activity, the company contributes to the generation of value and opportunities in these countries.
SDG Indicators Mexico Colombia Chile
Enrolment in Primary 96.1 87.7 92 Education (%)
Unemployment rate (%) 4.3 10 6.4
R&D expenses (% GDP) 0.4 0.2 0.4
CO emissions per person 2 3.9 1.6 4.6 (tCO2/capita)
Table: Key development indicators for Latin American countries where EULEN Group has a significant presence. Source: SDG Dashboard. United Nations.
Bad performance. Average performance. Good performance.
2016 Corporate Social Responsibility Report// EULEN Group 31 MILESTONES CHALLENGES CHILE • Education leveling program: The first • Expand the education leveling program group of EULEN Chile graduated, thus to employees who need basic or primary completing their secondary education. education leveling. • Inclusive continuous training: For • Start the Work Program with the senior employees with disabilities, and employees of the company. The aim is to Chilean sign language courses for generate a social and work diagnosis of other employees in the Metropolitan employees that are over 70 and that work Region. for EULEN in the Metropolitan Region. • Functional literacy program: • Repeat the inclusive continuous Continuation of the program for training program in other regions of the employees who request it country, like Viña del Mar, San Antonio or Valparaíso. • Awareness-raising for suppliers: Spaces and partnerships have been promoted with suppliers to allow the incorporation of diversity and inclusion as everyday work practices.
Strategy: The management of Social Responsibility in Chile is aimed at improving the opportunities and working environment of professionals, fundamentally in three key aspects: employment inclusion through the recruitment of people with disabilities, the development of skills to improve their employability, and initiatives that improve their quality of life.
Carlos Seals Baeza is an employee from the city of Coronel who currently serves as Recruitment and Selection Assistant. Carlos started in Eulen as security supervisor. Featured Unfortunately, he suffered an accident that resulted in irreversible damage to his spine. case In 2016, the CSR area analyzed the place where the employee performed his work activities and decided to make a series of modifications so that he could work from home.
Currently, Carlos continues to meet his responsibilities in better conditions; he truly contributes to his family and our company.
32 MILESTONES CHALLENGES COLOMBIA • Strengthening relationships • Minimize the error margin in data with external stakeholders and collection processes, automating support promotion of Corporate Social and production processes as much as Responsibility. possible. • Management of CSR expectations • Identify the true differentiating factors from feedback received internally and transmit them both to the internal and externally. customer and to the customer. • EULEN Colombia strengthened as • Attract talent and maintain it, so that a reference in the application of they provide the “extra mile” needed for diversity and employment inclusion our services. criteria.
Strategy: In recent years, social responsibility within EULEN Group Colombia has become a fundamental tool to boost the sustainability and competitiveness of the Company. Specifically, EULEN Colombia’s strategy on Social Responsibility is based on: • Training: to increase the performance and motivation of people. • Company-employee relationship: as an exercise of workers’ union and social rights. • Equality: regarding opportunities and gender equity. • Health and Safety: ensuring a safe and healthy work environment. • Human Rights: respect and promotion of human rights.
Donation of food:In 2016, EULEN Colombia S.A. actively participated, at a national level, in the day of food donation carried out on a corporate scale as a solidarity project, joining the challenge to fight hunger. The company managed to collect 155 Featured kilos of food, which were donated to the Colombian food bank. case Fight against cancer: Campaign to collect plastic caps (100 kilos) to donate them to Fundación Sanar. EULEN Colombia also issued a check for this foundation, for an amount of 4,500,000 pesos as additional support.
2016 Corporate Social Responsibility Report// EULEN Group 33 MILESTONES CHALLENGES MEXICO • Re-certification in ISO 9001 and ISO • Successfully accredit ISO 9001 and 14001 version 2008, and preparation ISO 14001 Certification in their 2015 for the 2015 version. version. • LAU Certification (Single Environmental • To continue the green initiatives License). Preparation for Federal through the “Sé verde” (Be green) Environmental Certification (LAU 2017). Campaign with the aim of generating • Environment: Green initiatives were an awareness and environmental continued in compliance with the culture in the company. Integrated Management Policy. • Preparation and implementation of • Quality of Working Life: Initiatives OSHAS 18001 Certification Phase 1 have been carried out such as flexible (or equivalent). scheduling to promote a better quality • Enable the Code of Ethics of life for employees. Course through electronic means • Business Ethics. Continuation in the (e-learning). dissemination of the Code of Ethics and • Re-certification of Business Alliance Corporate Values. for Secure Commerce (BASC). • Program to promote the hiring of people from vulnerable communities.
Strategy: EULEN Group in Mexico focuses its CSR strategy on improving the social, economic and environmental context, with the aim of optimizing its competitive situation and business value. The Corporate Social Responsibility at EULEN Mexico is based on: • Compliance with current legislation. • Practical work, strategies and business management systems. • Commitment and involvement of all employees. • Participation in initiatives and associations.
Project for the inclusion of people with disabilities in the work environment. EULEN Mexico has a Program for Assistants with disabilities at the International Airport of its capital. This program has great social impact and relevance Featured within the company. The Assistants are part of the security service and provide case guidance services related to flights, airlines and commercial services to users and passengers. This program was implemented in 2008, and it is still in force in favor of equality and the inclusion of the most disadvantaged. The program has been possible thanks to the collaboration agreement with the Humanist Foundation for the Assistance of the Disabled (FHADI).
34 MILESTONES CHALLENGES PERU • Basic school graduation of 29 EULEN • To expand, in 2017, the “EULEN Apuesta employees under the “EULEN por Ti” program to exceed the number Apuesta por Ti” program. of 100 graduated employees since the program started (2015).
Strategy: EULEN Peru manages corporate social responsibility mainly through its Integrated Management System, which covers aspects of quality, environment and health and safety at work. This Integrated System is comprised of procedures that establish the necessary guidelines for the fulfillment of the different objectives.
The “Eulen Apuesta por Ti” program provides basic educational services to adults who did not have access to regular basic education, and who are interested in making Featured their studies compatible with their work activities. In coordination with the Ministry case of Education, specifically with the UGEL No 3 and CEBA Miguel Grau, Eulen employees and their families can access free training to complete their primary or secondary education. These classes are given at EULEN headquarters, after working hours, so that the employee can continue their studies without compromising their work performance.
MILESTONES CHALLENGES PANAMA • Development of services in new • Strengthening of the maintenance sector. sectors such as: cleaning in thermal • Development of specialized cleaning: power plants, hospital cleaning and industrial, hospital, shopping centers, etc. maintenance in photovoltaic plants. • Development of the FS in the property • Increase of temporary work business management sector or in support of FM by 30%. companies. • Increase of visibility as a Facility Management company and expansion of the FS service.
Strategy: It focuses on establishing possible agreements and partnerships with other companies to offer more complete Facility Services & Management. Additionally, it is sought to make agreements with suppliers that generate added value for the company (both for the customer and for the environment). Social Responsibility in Panama is based on fraud prevention, service quality control and hiring of staff in vulnerable situations.
2016 Corporate Social Responsibility Report// EULEN Group 35 MILESTONES CHALLENGES UNITED STATES • Collaboration with charities. • Implement CSR programs that involve OF AMERICA Implementation of programs for the the employees. homeless and people with fewer • Continue to work with organization resources. (Chapman Partnership and dedicated to social and environmental Feeding South Florida) causes. • Volunteer program for the managers • Adapt CSR strategies that result of the International Airport of Ft. in a better brand positioning and a Lauderdale- waste collection in the responsible company image. airport surroundings. • Evaluate possible improvements of • Social inclusion. Local hospice at benefits for employees (insurances, the airport of Long Beach on Girls in well-being programs, update of Aviation Day. revenues, etc.). • Participation in Make a Wish Foundation.
Strategy: EULEN America pursues a solid, organized and growth-oriented business model. In doing so, Corporate Social Responsibility plays an important role, as it is integrated into the Company’s policies and procedures. In particular, matters relating to human rights and the environment are of particular relevance, being strategic factors for EULEN America.
Chapman Partnership During 2016, the marketing department of EULEN America was part of the “Womenade” Executive Committee of the Chapman Partnership. This Committee is formed by women Featured from all walks of life united by one commitment: to increase social awareness and to case help women and children rebuild their lives with the funds that are raised. Since 1995, Chapman Partnership’s mission is to provide a comprehensive service to empower homeless residents to become self-sufficient. The center offers a comprehensive and holistic approach through services and partnerships. Chapman Partnership is the private-sector partner of the Miami-Dade County Homeless Trust.
MILESTONES CHALLENGES PORTUGAL Promotion of equal employment • Supporting employees with psychosocial opportunities: problems. • Hiring 15 long-term unemployed • Continuing to promote equal employment people. opportunities and gender equity. • Hiring 7 people who formed a single- • Promoting balance between work and parent family. family life.
Strategy: EULEN Portugal follows the principles of Corporate Social Responsibility of EULEN Group. These are based on respect for all principles and legislation on matters of labor, health and safety at work, and the environment. Some of the procedures implemented are related to the following issues: • Hiring of employees. • Labor legislation in force. • Occupational Risk Prevention. • Management of suppliers and purchases. • Quality Management System, Environment, and Occupational Health and Safety. • Prevention of harassment at work.
36 MANAGEMENT OF RISKS AND OPPORTUNITIES
Carrying out an appropriate process of identification and management of risks and opportunities is a priority for the EULEN Group. This process allows the company to respond to the risk, to determine its impact and frequency, and ultimately, to determine the necessary mitigation measures. In 2016, the Risk Map of Spain was updated and approved by the Group’s Management in accordance with a Risk Management Procedure, aimed at identifying risks that may arise within the organization. This procedure is published on the intranet and is available to all employees. It should be noted that, after its implementation in Spain, it has started to expand in countries with a higher turnover. This way, in 2016 EULEN Group has a Risk Map in most of the countries where it is present (Spain, Portugal, Mexico, Dominican Republic, Colombia, Peru and Chile). This map is designed and updated periodically. Currently, efforts are being made to extend the scope to the rest of the countries following the developed Procedure, which will allow the standardization of the criteria in the evaluation and analysis of risks. Likewise, this year we have designated those responsible for risk controls, the employees involved, the description of the controls to be implemented, the possible improvement actions and the indicators that will be used to measure the effectiveness of such controls. For the elaboration of these Risk Maps, an inventory of risks was sent to those managers who were potentially responsible for their control. Such inventory allowed the identification of new risks, classifying, analyzing and evaluating risks (probability and impact) and defining the controls to be implemented.
Risk management process EULEN Group follows a specific process for risk management, which allows them to identify, measure, evaluate, prioritize, control and manage the risks to which it is exposed. This way, they can decide how those risks are assumed, mitigated or avoided.
Risk Risk analysis Risk evaluation Risk treatment Monitoring and identification (Preparation of the (Hierarchy) (Action plans) review of risk risk map) treatment plans Classification It allows us to know: Through the risk map, • Measures to reduce or Ensure the effectiveness of according to: • Risk level. the main risks are eliminate the risk. the measures that have been • Origin organized hierarchically taken. • Probability of Nature in order to: • materialization. • The Internal Audit • Cause • Determine the risks on Department will monitor • Impact on the which action needs to and review the risk • Type of impact: company. economic, be taken. management plans operational, • Establish priorities in (periodically): reputational, the treatment of risks. - Effectiveness of the measures . personal or Define actions that • - Tolerable residual risk levels environmental. need to be taken. - Implementation of new measures.
2016 Corporate Social Responsibility Report// EULEN Group 37 Result of the company’s risk map
RISKS Why is it a risk for EULEN Group and how The trend of our environment does it manage it?
The services sector is highly pro-cyclical. Worse Impairment of macroeconomic conditions: Despite economic growth can translate into a decline of the best forecasts of global economic growth of the demand, price pressure and reduction of margins. International Monetary Fund (IMF), economies, both From EULEN Group, we work to strengthen advanced and emerging, continue to be exposed to relationships with customers and make sure that tensions that can lead to a decrease in demand. our services meet their needs to mitigate the possible effects of a fall in their budgets.
The concurrence of more competitors leads to Increasing the commoditization of some services: greater competition for price, putting downward Certain auxiliary or environmental services have pressure on prices. The Company’s response low entry barriers that are favoring the emergence is the commitment to innovation to increase of new competitors, as well as the relocation of the differentiation of its services and customer activities to regions with relatively cheaper cost satisfaction, as well as a commitment to introduce structures. efficiency measures in the provision of services.
For EULEN Group, as for the rest of the companies in the sector, the modifications on the subrogation could be a risk in two senses: • In the event of acquiring a contract from a previous supplier without staff subrogation, EULEN Group would have the challenge of attracting new professionals in the market and training them to ensure the highest quality in the provision of the service. To do so, EULEN Changes in labor regulations referred to the Group has selection and training policies that subrogation of staff. allow the fast integration of professionals. • If the Company cannot renew the contract with a customer, and the subrogation figure does not exist, the challenge of absorbing the team of professionals will be prioritized, without it affecting the profitability of the company. To minimize the risk of this happening, the Company seeks to strengthen relationships with its customers and maximize their satisfaction.
Shortage of qualified professionals in emerging countries: The qualification of professionals, in In countries with this type of shortage of qualified terms of academic certificates, and also skills and profiles, EULEN Group may find it difficult to competences, are key to the provision of certain have adequate resources for the provision of its services, as they allow to ensure quality and services, either directly or through its supply chain. customer satisfaction. In some emerging economies, For this reason, the company intends to maintain a the availability of this kind of professionals is limited, professional differential offer for its employees and which leads to high employee turnover and wage apply strict supplier selection criteria. tensions.
38 OPPORTUNITIES
Why is it an opportunity for EULEN Group The trend of our environment and how does it manage it?
Development of demand for services in Latin EULEN Group has the necessary portfolio of America: The process of economic development services and abilities to continue developing its of emerging economies typically involves a presence in the region, and to take advantage process of “outsourcing” of the economy. In this of the opportunities that arise in the different case, the services sector takes on greater weight areas of Facility Services, Cleaning, Maintenance, in response to the growing need for a production Security and Environment. system and a more developed middle class.
As we have already mentioned, EULEN Group grows at the same pace as services Ageing of the population in advanced economies, are innovating and evolving towards sectors and particularly in Spain: The low birth rates of increasing demand. EULEN Servicios recorded in the last decades have led many Sociosanitarios, Social and Healthcare services, emerging economies to develop a relatively old is a clear example. It is a service with a growing population pyramid, which sets up a new playing demand, and nowadays it has different lines of field for the provision of services. activity, from Telecare and Home Care Assistance, to the Management of Healthcare Centers.
EULEN Group has the skills and knowledge (technical and customer-related) to develop a range of services in the area of intelligence Increased need for intelligence or cybersecurity and cybersecurity that respond to the needs services by customers in response to emerging of customers. To take advantage of these threats to logical infrastructures and data. opportunities, and as described in chapter 5.2, the company is dedicating significant resources to the innovation and development of new offerings in these areas.
Responsible management as an element In an environment where there is a certain of differentiation before customers and commoditization of services, as mentioned professionals: Increasingly, economic agents above, the management responsible of the (customers, professionals) enrich their organizations can contribute to develop a decision criteria with social or environmental differential proposal in the market and to considerations, so they require organizations to position itself favorably before the competitors. incorporate these issues into their management EULEN is an advanced company in sustainability. and strategy.
For 2017, the main challenges of EULEN Group are: • To continue to treat the identified risks in countries where there is a Risk Map approved by the Management, implementing the controls and verifying their effectiveness. Subsequently, the process of updating the existing risks will continue so that it is a continuous improvement process. In countries where the Risk Map has not been developed, EULEN Group has the objective of implementing it, in accordance with the established Procedure (USA, Costa Rica and Panama).
2016 Corporate Social Responsibility Report// EULEN Group 39 LEGAL COMPLIANCE AND CODE OF ETHICS The recent introduction of criminal liability of companies in Spanish legislation arises as a result of growing social concern for the absence of a solid culture of compliance and business ethics between companies. The management of compliance should therefore be a strategic issue in organizations, as it can have a high impact on their reputation and brand image. Demonstrating due diligence, implementing efficient internal control mechanisms, as well as ensuring transparency in management, are keys to success that provide a significant competitive advantage and reaffirm the commitment of organizations towards responsible management. The control mechanisms established in the EULEN Group, the channels through which communications are carried out and the training given to professionals of the company on this matter, are detailed below.
CONTROL MECHANISMS EULEN’s regulatory system includes standard N-0015/830 on Crimes Prevention System in the Companies of the group. This standard was published in 2015, and it serves as the management mechanism for possible breaches associated with behaviors that are not in line with the company’s value and that may be considered fraudulent or corrupt. This Compliance system allows the identification and control of legal risks of each business area, as well as the establishment of procedures to ensure the compliance with regulations in force in each country of the Group. This standard, the compliance of which relies on the Commission on Crime Prevention, was implemented in Spain as an adaptation to the reform of the 2015 Criminal Code. It is currently being implemented internationally with the aim of reaching all countries at the beginning of 2018. In 2016, EULEN Group’s Criminal Risk Map was completed. This map is independent of the Company’s Risk Map and is expected to be approved in 2017 as an annex to the report of the Crime Prevention Committee. Regarding the subcontracting of services, it is expected to add clauses in EULEN Group’s contract model, under which the subcontractor is required to comply with all applicable regulations in crime prevention in each of the countries where the company operates. In those contract models proposed by the client, EULEN Group signs 100% of the contracts that include this type of clauses. On the other hand, the Company has its own Code of Ethics, which was published in 2013 and approved by the highest Governing Body. The body responsible for ensuring compliance with the Code of Ethics is the Ethics Committee of EULEN Group. This Committee is formed by the Director of HR, the Director of the Corporate Area of Organization and Control, the Director of Legal Advice and the Director of the Production Area. The Code of Ethics includes the principles and guidelines of conduct to be followed by all professionals of the Company, as well as the commitment to act in accordance with values that ensure a responsible and respectful behavior towards the law in force.
40 All employees of the Group must know and show their consent in this regard. They are also obliged to comply with them from the moment they join the Company. In this sense, any employee of the Group or its Stakeholders may report alleged breaches of the Code of Ethics that they detect in Group companies or among their employees. Therefore, suppliers, subcontractors and customers must also follow the principles of the Code.
TRAINING In 2016, different training courses have been given in relation to the Code of Ethics and the Crime Prevention System. Throughout 2017, the objective is to give two in-person sessions for each geographical area and an online course that allows extending the training to all indirect professionals.
COMPLAINTS CHANNEL The Company has a complaints mailbox that is available to all its employees. This mailbox can be used to communicate, in a confidential way, all those actions that may be imply a breach of the company’s Code of Ethics. Throughout 2017, they plan to create a complaints mailbox on the Group’s corporate website, giving other stakeholders the possibility to communicate. It should be noted that, in 2016, there have been no significant incidents of breaches of the Code of Ethics or offences that entail criminal responsibility for the company. At the first sign of a breach, EULEN Group takes the necessary measures to prevent the incident from becoming severe and resulting in criminal responsibility for the company. As for mechanisms to prevent corruption in countries where EULEN Group is present, we can mention the following:
Chile: Adherence to the United Nations Global Compact principles and alignment with the Chilean Government’s Probity Agenda to raise the transparency standards that citizens legitimately claim.
Colombia: In 2016, the Secretariat of Transparency of EULEN Group Colombia created the map of Corruption Risks. At the same time, the Anti-Corruption and Anti-Bribery Policy has been designed, approved and disseminated in order to comply with the provisions of the Criminal Code, the Anti-Corruption Statute and the Code of Ethics. In this regard, awareness-raising and training sessions have been held for employees in order to strengthen corruption prevention.
USA: Every year, all employees must carry out an online course based on EULEN Group’s Code of Ethics. The aim of the course is to provide employees with an approach based on ethical values, such as prevention of corruption and fraud.
Mexico: Attainment of the re-certification by BASC - Business Alliance for Secure Commerce. The main objective of this certification is to promote, within its associates, the development and execution of preventive actions aimed at avoiding the illegal commercialization of goods.
2016 Corporate Social Responsibility Report// EULEN Group 41 On the other hand, in 2016 the course on Code of Ethics was delivered through the platform @prende. The main objective of this course was to establish solid bases to adequately resolve an ethical dilemma, always in line with the Company’s values.
Peru: Peru has several control mechanisms such as the Control and Security Management Policy and specific Procedures for Risk Management and Critical Events. Efforts are also being made to implement a Crime Prevention Model for bribery, money laundering and terrorist financing, as part of a requirement of legal regulations in Peru.
Portugal: A series of fraud prevention measures have been established, such as the requirement of double signature in banking transactions, restrictions on access to information available on the server or the impossibility to install software that is not approved by the IT Department of EULEN Group.
42 MANAGEMENT RESPONSIBILITY
The Management of EULEN Group is entrusted, by agreement of the General Meeting of Shareholders, to a Sole Director who is, in turn, the Executive President of the Group. As a Director, she has the functions and powers granted to her by law. In their Executive function, they are responsible for approving corporate strategies designed to achieve the objectives set forth in the Company’s action plans, ensuring they are met. Likewise, within the scope of Corporate Social Responsibility, the approval and follow-up of the Code of Ethics and the Integrated Management Policy (Environmental, Quality and Health and Safety Management) are of their competence, as well as the review and approval of the Corporate Social Responsibility Report, prior to its publication. The Shareholders’ Meeting reviews and, where appropriate, annually approves the Company’s accounts and the management performed by the Directors. The Notes to the Consolidated Annual Accounts and the Management Report as of 31 December 2016, details the remuneration of the Senior Management.
ADMINISTRATIVE BODY Legal Advice
Human EXECUTIVE Resources PRESIDENCY Secretariat Economic General Financial
CEO ICT Development of services and R&D&I Marketing
Organization and Institutional relations Control and CSR
International Security Operations
Directorate General Sub-directorate General Sub-directorate General SPAIN, PORTUGAL and NORTH AMERICA and SOUTH AMERICA MIDDLE EAST CENTRAL AMERICA
- SPAIN - U.S. - Chile - Portugal - Mexico - Colombia - UAE - Panama - Peru - Oman - Costa Rica - Qatar - Dominican Rep. - Jamaica
2016 Corporate Social Responsibility Report// EULEN Group 43 Main Committees and Decision-making Bodies
Members Purpose
President, Executive Vice- president, Directorate General CORPORATE Relevant matters of the company’s Spain and Portugal, Sub- MANAGEMENT Governance, remuneration and directorate General North and COMMITTEE appointments. South America, Corporate Areas.
Directorate General Spain and Portugal, Sub-directorate MANAGEMENT General of FS&M, Safety, COMMITTEE Relevant matters of the Company’s Temporary Employment, Social FOR SPAIN AND Management within its scope. and Healthcare Services, Activity PORTUGAL Directorates.
The heads of the Departments of Internal Audit, Legal Advice, COMMITTEE National Headquarters of ON LEGAL Ensure compliance with the Crime Economic Control of Exploitation, COMPLIANCE Prevention System. Organization, Tax Advice, AND CRIME Economic-Financial Area and Data PREVENTION Protection.
Corporate directorates of HR, Interpret the Code of Ethics, Organization and Control, ETHICS receiving and managing all Directorate of Legal Advisory, and COMMITTEE complaints that any employee a Production SDG. makes.
The Corporate Social Responsibility Management is coordinated in a transversal way with the different areas of the Company. The CSR strategy has the involvement of the Corporate HR Area in relation to the social dimension, and of the Corporate Area of Organization and Control in relation to the environmental responsibility of EULEN Group.
44 Wilfredo Labio -PERU-
2016 Corporate Social Responsibility Report// EULEN Group 45 Rosalia Alarcón with user Emma Villamil -SPAIN-
Strategy and Ü Sustainable social and economic development Ü R&D&I applied to processes and services “great company” Ü Protection and respect for the environment sentiment
46 SUSTAINABLE SOCIAL AND ECONOMIC DEVELOPMENT
EULEN Group’s strategy is based on the economic sustainability of its companies, the integration of people at risk of exclusion and the stability of employment.
EULEN GROUP’S PROGRESS UP UNTIL TODAY In order to achieve this strategy, the company has overcome many obstacles since its origins (economic crises, local currency fluctuations, and late payment of public and private customers, among others). Despite this fact, EULEN Group has managed to grow steadily in both sales volume and number of employees, as shown in the following diagrams:
Employees Sales in thousands of euros
90000 2000 86,532 86,206 81,743 75000 1500 1,517 1,466 60000 1,343 58,419 1000
45000 878 42,457
500 591 30000
22,294 309
15000 0 1995 2000 2005 2010 2015 2016 1995 2000 2005 2010 2015 2016
As specified in chapter 7 of this report, the company’s commitment to labor integration of people in groups at risk of exclusion goes beyond compliance with the law on labor integration of people with disabilities. In Spain, EULEN Group has 3.01% of people within this group in its workforce.
2016 Corporate Social Responsibility Report// EULEN Group 47 2017-2021 STRATEGIC PLAN In June 2016, the Group presented its Strategic Plan for the period 2017-2021, within the framework of the annual directors’ convention. The company intends to increase sales by 50%, to 2.25 billion euros, and double the profit to surpass 32 million euros. To achieve this, it will strengthen its external presence, intensify the selective policy of customer portfolio and invest more resources in the qualification of its staff and modernization of systems.
Above all, the group’s growth will be organic, through the awarding of new contracts. However, the company also plans to increase in size with purchases, counting on an initial allocation of 80 million euros.
Its aim is for international markets to increase their share of results in a relevant way, especially in the USA, where EULEN Group is already present in five states. In 2021, the company intends to invoice 740 million outside Spain, which represents an increase of more than 100%. In Spain, the strategic plan aims to reach 1,510 million in 2021.
The main figures and objectives of the 2017-2021 Strategic Plan are:
SALES PROFIT + 50%, up to €2,250 million +100%, up to €32 million
INVOICING OUTSIDE PURCHASES SPAIN Initial allocation of €80 million + 100% up to €740 million
In addition to sales growth and improved profitability, the company is targeting:
• Digital transformation. • Standardization of processes at a corporate scale. • The reinforcement of its distinctive aspects (Quality in the execution of services, respect for the environment, social responsibility and training of employees). • Movement towards its own Management style, specially focusing on the valuesof the Group (Professional integrity, respect for laws, giving priority to people, a long-term project).
These last two aspects are perfectly in line with the objective of enhancing Corporate Responsibility as an element of internal cohesion. Also with the aim of increasing and consolidating the feeling of pride in belonging, and of transferring our engagement with society to our customers and employees, specifically expressing the nature and scope of the actions carried out for this purpose.
48 R&D&I APPLIED TO PROCESSES AND SERVICES
EULEN Group integrates innovation into its business model to improve competitiveness and efficiency, and to position the company favorably with respect to its main sector competitors. EULEN Group is immersed in a continuous process of exploration and development of new services, with the aim of accessing new markets and meeting the growing needs and demands of customers. As a new approach towards innovation, the group has applied: • Scientific discipline that allows creating new service concepts that add value to customers and society as a whole. • Technical discipline that allows improvement towards better and more productive services.
CHALLENGE COMPLETED 13 R&D&I Throughout 2016, the group has worked on 13 innovation projects, which are projects in different stages of development. The Service Design projects will be detailed managed in 2016 further on.
EULEN PROACTIVA PROGRAM, INNOVATION OF SERVICES FOR LARGE COMPANIES
It is a service for large companies that seeks to anticipate the future needs of customers and the sector to which they belong. The aim is to analyze the service provided to the customer and propose a new action plan that includes the proposed improvements that will be provided to them (technical studies, design workshops, new services ...). Subsequently, the execution of these actions will be coordinated. In 2016, the program has been applied to several customers, providing a high added value.
CHALLENGE COMPLETED During 2016, EULEN Group has improved the system created for service design. Its objective is to identify new services with potential, to design them and to integrate the necessary technology and offer the best to its customers. In its development, the group uses its own methodologies and tools, created by the R&D&I department of EULEN Group. These methodologies and tools are: • Service representation system (MRS). • Analytical project (DSP). • Design table. As an example, the five Designed Services stand out (service models created to provide useful, quality and more effective solutions). These were developed in 5 Designed 2016 for its customers. Services developed in 2016
2016 Corporate Social Responsibility Report// EULEN Group 49 2017 CHALLENGES EULEN Group is committed to making a difference in the offer of the services it provides, compared to others of less value in the market. Currently, the innovation in the group is focused on the creation of sustainable employment, new practices and systems that allow maintaining the efficiency of the services without destroying net employment. For 2017, the main challenges of EULEN Group are: • Expand the Designed Services. In 2017, the Designed Services will be expanded, with the aim of reaching 10 new services which will materialize, in general, throughout the entire company. • Strengthen EULEN Proactiva and apply the process to the main customers of the Group.
PROTECTION AND RESPECT FOR THE ENVIRONMENT
For EULEN Group, the protection of the environment is an essential aspect to achieve the sustainable development of its activities. In an environment of increasing concern about the short- and medium-term consequences of degradation of the natural environment and climate change, EULEN Group cannot stand aside, and it has an obligation to minimize the impact of its activities on the environment. EULEN Group’s environmental management is based on the sustainable use of resources, the reduction and optimization of consumption, and the reduction and offsetting of its carbon footprint of both the Group and its main customers through its environmental services. The Group’s commitment to sustainable management is reflected, for example, in the renewal of ISO 14001 certification in 6 of the 14 EULEN countries (Spain, Portugal, Mexico, Peru, Colombia and the Dominican Republic). Major environmental investments have also been made in 2016 to renovate the fleet, luminaires, air conditioning systems, or for the purchase of efficient cleaning equipment, as described later on in chapter 9. This way, the Group ratifies its commitment to its Quality and Environmental Management Policy, which ensures the highest possible degree of satisfaction to its customers. This Policy is based on value creation, ethical commitment, environmental protection, pollution prevention and mitigation of and adaptation to climate change.
50 Álvaro López Pinel -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 51 52 The activities of EULEN Group can be intensive in certain environmental aspects, such as water or chemical consumption. Therefore, the measurement, management and reduction of consumption are crucial acts of responsibility in the Group. In order to improve the management of its environmental impact, in 2016, EULEN Group designed a new computer application that allows it to efficiently manage its environmental performance. In 2015, the XXI International Conference on Climate Change (also known as COP21) was held in Paris. Its aim was to reach a global agreement to reduce greenhouse gas emissions and limit global warming to below 2 degrees Celsius by 2100, with respect to the pre-industrial era. In this respect, EULEN Group firmly believes that, far from being a potential threat, the agreement represents a growing opportunity for environmental services in order to improve the environmental performance of its customers. In this regard, the company has started to design and offer different services of inventory, calculation, management and offsetting of CO2 emissions through forests used as carbon sinks. It has also started to offer GHG Reduction Plans, making its own contribution towards the achievement of the COP21 objectives.
OUTSTANDING CHALLENGE In 2016, steps were taken to create the so-called “EULEN Forest” (Bosque EULEN) in the municipality of Colmenar Viejo (Spain). This carbon sink forest is intended to capture CO2 emissions derived from the activity of the entire Group. Once the necessary administrative procedures are completed, it is expected to officially capture CO2 before the first quarter of 2017 in the municipality of Colmenar Viejo (Spain). The forest will have an area of more than three hectares, and a continuance period of 30 years. It will be officially registered in the Registry of carbon dioxide absorption projects of the Ministry of Agriculture and Fisheries, Food and Environment (MAPAMA) With this initiative, framed within the Corporate Responsibility Plan of EULEN Group, steps continue to be taken to strengthen the Group’s engagement in taking care of the environment.
2016 Corporate Social Responsibility Report// EULEN Group 53 Main success Ü Cost efficiency Ü International expansion factors Ü Development of new lines of business
54 Since David Álvarez founded the Central Cleaning Company El Sol in Bilbao (Spain) in 1962, and its evolution towards the current name of Grupo EULEN, 54 years have passed. During these years, the business strategy has been based on the contribution of value to society as a whole. Throughout its history, EULEN Group has successfully overcome stages of political, social and economic uncertainty, without its solid foundations being affected. The key to this success is based on the values of the company, transmitted by its founder, and on the following strategic factors that have allowed for the consolidation and development of the Group’s activities:
• Cost efficiency • Innovation and Development of new lines of business • International expansion
LINES OF ACTION 2016 MILESTONES
• Increase in sales by 3.56% and net profit for the year by 65.3%.
• Increase in earnings per employee by 2.4%. Cost efficiency • Improvement of structure cost ratio on sales by 1.8%.
• Reduction of the ratio between financial debt and EBITDA by 2.6%, compared to 2015.
• Creation of the calculation services and offsetting of the carbon footprint of the Development of new lines Group’s customers. of business • Creation of the EULEN PROACTIVA service.
• During financial year 2016, the Group continued its consolidation in Portugal, the United Arab Emirates and Qatar. Creation of International expansion two new companies: EULEN Management & Facilities Services LLC and EULEN Services LCC in the Middle East.
2016 Corporate Social Responsibility Report// EULEN Group 55 COST EFFICIENCY
The optimization of the processes is a key element in EULEN Group’s strategy. It is mainly focused on attaining competitive advantages in cost efficiency, without compromising the quality of the service provided to the customers. The high competition existing in the sectors where EULEN Group carries out its activities requires: constant innovation of services, a continuous analysis of customer needs, a detailed study of market evolution and a correct provision of extraordinary expenses.
2016 has been a reasonably good year in terms of economic and financial results. Sales volume increased by 3.6%, reaching 1,517 million euros. In terms of productivity, the ratio of earnings per employee has also increased (2.4% compared to 2015).
Net turnover (In thousands of euros)
1600000
+3.6% 1,517,932 1450000 +5.6% 1,465,695
1,387,859 1300000
1150000
1000000 2014 2015 2016
Regarding the gross operating profit (EBITDA margin), growth compared to 2015 is of 16.4%, while net profit for the financial year increased by 65.3%:
EBITDA and consolidated profit/loss for the financial year (In thousands of euros)
45000
37,710 38,374
33750 32,975
22500
13,176 14,086 11250 8,520
0 2014 2015 2016
EBITDA
56 The ratio between direct and structural costs in relation to sales figures shows a percentage decrease of 0.1% and 1.8%, respectively.
Another economic figure worth mentioning is the decrease in the ratio between financial debt and EBITDA by 2.6% compared to 2015, a symptom of the company’s financial health. Finally, the consolidated cash flow at the end of the financial year increased by 62.2%.
INTERNATIONAL EXPANSION
In 2016, EULEN Group continued its expansion and consolidation in different countries, such as Portugal, the United Arab Emirates and Qatar.
Ah the start of 2016, EULEN Group set up a new company in Abu Dhabi, EULEN Management & Facilities Services, with its local partner Ahmed Almazrouei Group (AAG). The objective of the new company is to be able to operate throughout the UAE area, as well as to take a step further in the Group’s internationalization plan. The Company provides Facility Services & Management (cleaning, security, maintenance and environment, auxiliary services and other services not included in the core of its customers) in a market with great opportunities for outsourcing and that has had significant growth in recent years.
In 2015, EULEN Group had carried out the last expansion operation through the partnership with the German Group Dussmann to create the international joint venture ideafm GmbH. In 2016, this agreement was consolidated and preferential collaboration agreements were concluded. These allowed the group to expand its services in Europe, currently reaching 33 countries.
With regard to sales figures, the increase in the international area was of 8.04%, representing 25.5% of the Group’s total (24.5% in 2015).
Ricardo Pérez -DOM. REPUBLIC-
2016 Corporate Social Responsibility Report// EULEN Group 57 The breakdown of sales by geographies is shown below:
NORTH AMERICA 191,373 (+5.4%) EMEA 1,150,978 (+2.1%)
SOUTH AMERICA 175,581 (+11.9%)
EMEA: Spain, Portugal and Middle East. NORTH AMERICA: Costa Rica, United States, Jamaica, Mexico, Panama and Dominican Republic. SOUTH AMERICA: Chile, Colombia and Peru.
These figures show the growth experienced in almost all geographical areas, with Peru (31.7%) and Colombia (15.5%) at the head in the South America region, and the USA with (8.7%), Costa Rica (23.7%) and the Dominican Republic (28%) in North America and Central America.
DEVELOPMENT OF NEW LINES OF BUSINESS
EULEN Group is a company in constant search for solutions and services that respond to the demands and expectations of society, as well its current and future customers. Research and development in the company are fundamental pillars to be able to develop new lines of business, in line with these expectations (see chapter 5.2). As a result of this task of designing and researching new services and collaborating with stakeholders, in 2016 the group developed the service for the calculation and offsetting of customer’s carbon footprint. This service covers a new demand for services based on the search for solutions by companies concerned about the impact of their operations on the environment. On the other hand, it also responds to the commitment of the Companies with the fulfillment of the Sustainable Development Objectives, specifically with SDG 13, Climate Action.
Furthermore, worth mentioning is the EULEN PROACTIVA service, which consists on improving EULEN Group’s global service contract with its customers, in terms of quality, cost, sustainability and control. The aim is to offer new service proposals, integration of other services, considering technological advances, new management models and even new ways of joint business collaboration.
58 This service has already been introduced in several large accounts in 2016 and is expected to be extended in subsequent financial years.
The evolution and distribution of the different activities of EULEN Group are shown below:
2016 2015
191,621 163,941 raba o e poral 165,282 175,475 Ser icios Sociosanitarios 855,709 830,556 305,320 Se uri a 295,723
acility Ser ices ana e ent
163 941 TemporaryTraba o Temporal Work 175 475 PublicSer icios health Sociosanitarios services 830 556 295 723 SecuritySeguridad
Facility Ser icesServices & Management
It should be noted that, another year, sales of services under the Facility Services and Management (FS&M) umbrella account for more than half of the invoicing (56.4%), although in comparison with 2015, the service that has experienced the greatest increase is Temporary work (+16.9%).
Distribution of consolidates Variation 2014 2015 2016 sales by activity* 2015-2016
Facility Services & Management** 794,847 830,555 855,709 +3.03%
Security 293,101 295,724 305,320 +3.25%
Public health services 165,304 175,475 165,282 -5.81%
Temporary Work 134,608 163,941 191,621 +16.88%
TOTAL 1,387,860 1,465,695 1,517,932 +3.56% * In thousands of euros. ** Facility Services & Management includes: Cleaning, Auxiliary Services, Maintenance, Environment-related services and others.
2016 Corporate Social Responsibility Report// EULEN Group 59 Juana María Vives -SPAIN- Juana María Vives
Human Capital: Ü Employment in EULEN Group Ü Diversity and integration Our main asset Ü Development of our professionals Ü Health, safety and well-being
60 For EULEN Group, human capital is their main and most important asset. For this reason, the company believes that having a team of employees who are qualified and committed to the excellence model that the company aims for are key to their business success.
Therefore, EULEN Group’s human resources management is aimed at guaranteeing quality working conditions, a healthy and sage work environment and equal opportunities for all groups.
More than 50% of open-ended contracts.
3.01% of workforce Employment in Diversity and members with EULEN Group integration some kind of disability in Spain.
HUMAN CAPITAL Our main asset
Health, safety Development and well-being of our professionals
39% of the workforce 611,836 hours of employee covered by OHSAS 18001 training. Cerficaon.
2016 Corporate Social Responsibility Report// EULEN Group 61 Lines of action 2016 Milestones 2017 Challenges
International harmonization • Progress in the corporatization of the HR area. • Standardize the collection of HR management indi- of management Creation of the HR department in the Dominican cators between all countries where EULEN Group Republic. has employees. • Publication of EULEN Group’s hiring policy. • Creating a Committee of people to manage the hu- • Development of the project “Proyecto EULEN 2020 man capital of the Company. Attracting major talent Future People” focused on Young Graduates. The number of internships and hirings has amounted to 43 young people.
• Hiring 224 people with some kind of disability from • Extending the Special Employment Centers (CEE) Special Employment Centers (CEE). network with a new center in Catalonia. Diversity and integration • Extending the remuneration policy to all EULEN Group. • Equality plan – definition of follow-up.
Development of our • Evaluation of potential. Progress in countries (50% • Extend the program for the evaluation of potential: professionals of the workforce in Chile). Remaining 50% in Chile and starting the Program in Mexico.
• First Code of Ethics corporate course - for 100% • Develop the EULEN Group Mentoring School in or- of employees in the structure - in all the countries der to guide the new members and facilitate their Promotion of training where the group is present. integration into the Company. • Training provided internally (own resources) to • Expand training in e-learning format so that it can 100% of security staff. be accessed by all employees of all services. • Increase of training hours by 14.75%. • Start the activity of the EULEN Corporate Univer- • Definition of EULEN Corporate University and sity, as a transmitter of the training strategy of the presentation to the Senior Management. company, focused on staff within the organizational structure.
Certification of • Maintain the OHSAS certification in all the activity • Extension of OHSAS Certification to other geogra- Management Systems carried out in Spain. phies and business lines: Cleaning, Auxiliary Servi- ces, Security and Temporary Work in Portugal. • Integration of certificates in 9001, 14001 and OH- SAS, so that all processes are the same.
Updating of management • Complete implementation of the document • Adaptation of the “Hércules” tool to new lines of tools management tool “Hércules” for information and business: Redesign of document templates, prepa- management of occupational risk prevention. ration of compliance reports and integration into • Design of document templates on labor accidents the Corporate Regulatory System. that include relevant information.
Reinforcement of • Launch of awareness campaigns aimed at • Continuity of employee awareness campaigns. prevention of occupational preventing cardiovascular and cerebrovascular • Launching of a campaign on “Postural Ergonomics” diseases diseases, through mobile device applications (App). in Spain for all employees, direct and indirect. • Conducting of a 1.5-hour course on ORP awareness directed to middle managers.
Reduction of resource • Full digitalization of the internal magazine consumption: paper “Nosotros”, with multimedia and browsable contents
• Design of the new Employee Corporate Portal, Updating of corporate tools adapted to the company’s digital corporate image, as well as social networks and websites.
Employee participation in • Launching of a campaign along with “Banco de social causes Alimentos”, for the collection of food among employees.
62 El empleo en EULEN
EL CAPITAL HUMANO EMPLOYMENT IN EULEN GROUP Nuestro principal activo
As of 31 December 2016, the total workforce of EULEN Group had 86,206 professionals, 0.38% less than in 2015, mainly due to the decrease in the workforce in the geographical area of Iberia.
2016 2015
55.14% 44.86% 56.6% 43.4% (47,538) (38,668) (49,169) (35,310)
Employees in Spain. Employees in Spain. Internaonal employees. Internaonal employees.
Region* 2014 2015 2016 Var. %
EMEA 51,141 51,222 49,655 -3.06%
North America 16,114 16,223 16,833 3.76%
South America 17,224 19,087 19,718 3.31%
TOTAL 84,479 86,532 86,206 -0.38% * EMEA: Spain and Portugal * North America: Costa Rica, United States, Jamaica, Mexico, Panama and Dominican Republic. * South America: Chile, Colombia and Peru.
2016 Corporate Social Responsibility Report// EULEN Group 63 Main indicators of EULEN Group’s workforce composition
FINAL WORKFORCE IN EULEN (% OF EMPLOYEES BY GENDER)
CONSOLIDATED NATIONAL INTERNATIONAL
60 60 60
56.72% 53.34% 50.81% 45 45 45 46.66% 49.19% 43.28%
30 30 30
15 15 15
0 0 0 Male Female Male Female Male Female
FINAL WORKFORCE IN EULEN (% OF EMPLOYEES BY AGE)
CONSOLIDATED NATIONAL INTERNATIONAL
14.78% 20.64% 28.91% 24.62% 27.84% 32.41%
50.45% 52.81% 47.54%
F30 30-50 G50
FINAL WORKFORCE IN EULEN (NO. OF EMPLOYEES PER CONTRACT TYPE AND GENDER)
CONSOLIDATED NATIONAL INTERNATIONAL
100 100 100 Inde nido Inde nido
Temporal Temporal 75 46.75% 40.49% 75 52.88% 41.83% 75 40.32% 38.60%
15.682 15.682 15.682 50 50 50
53.25% 59.51% 47.12% 58.17% 59.68% 61.40% 25 25 25
0 0 0 Male Female Male Female Male Female
Temporary contract Open-ended contract
64 FINAL EULEN WORKFORCE BROKEN DOWN BY PROFESSIONAL CATEGORY AND GENDER
CONSOLIDATED NATIONAL INTERNATIONAL
100 100 100 HOMBRES 11.20% HOMBRES 43.66% 90 28.66% 90 90 47.56% 38.45% 55.25% 80 46.48% 80 MUJERES 59.93% 43.42% 80 MUJERES 50.37% 70 70 70 70.27% 63.60% 71.77% 68.37% 64.50% 60 60 60
50 50 50
40 71.34% 40 88.80% 40 52.44% 61.55% 56.34% 30 30 30 36.40% 53.52% 40.07% 56.58% 44.75% 35.50% 49.63% 20 20 20 29.73% 28.23% 31.63% 10 10 10
0 0 0 t t t s s s s s s ee ee ee ctor ctor ctor ators ators ators Di re Di re Di re Oper Oper Oper echnicians echnicians echnicians e employ e employ e employ v v v stra stra stra Middle Managemen Middle Managemen Middle Managemen Admini Admini Admini Management and T Management and T Management and T
Men Women
30000
25000 9,569 9,272
20000
15000
19,828 15,203 17,690 16,268 FINAL WORKFORCE IN EULEN SPAIN 10000 NO. OF EMPLOYEES PER SHIFT TYPE AND GENDER 5000
4,346 4,308 0 MujerFEMALE MALEHombre MujerFEMALE HombrMALE e 2015 2016
Full-me employment Part-me employment
2016 Corporate Social Responsibility Report// EULEN Group 65 ADDITIONS TO EULEN SPAIN
240000
186250
237,420
132500 223,114
78750
31,755 31,721 25000 New Hires No. of hirings
2015 2016
Note 1 New hires: Staff that works in the company for the first time. Note 2 Number of new hires: Additions to the company, whether it is their first time working in it or not.
ADDITIONS TO EULEN SPAIN BROKEN DOWN BY GENDER
17000
16,506 16,685
15250 15,249 15,036
13500
11750
10000 2015 2016
Women Men
66 VOLUNTARY TURNOVER IN EULEN SPAIN (PERCENTAGE DISTRIBUTION BY AGE) 020406080100
6.78% G50 8.40%
47.63% 30-50 54.10% 237.420
45.59% F30 223.114 37.40%
2015 2016
VOLUNTARY TURNOVER IN EULEN SPAIN (% OF VOLUNTARY TURNOVER BY GENDER)
15
13.80% 12
10.61% 10.93% 9 8.74%
6
3
0 2016 2015
Women Men
2016 Corporate Social Responsibility Report// EULEN Group 67 Company-employee relationship For EULEN Group, carrying out the correct management of its employees’ legal representation is essential to improve their conditions and expectations.
For this purpose, the company is present in the main business associations and regularly participates in workers’ union forums, assuring its employees the right to collective bargaining.
During 2016, the percentage of employees of EULEN Spain under a collective agreement exceeded 97%. The rest of the employees remained under the Workers’ Statute.
Collective bargaining Forums with workers’ unions
• More than 60 collective • Address the situation of the bargaining through Business sector, analyze its problems Associations. and propose actions for its • Some examples are: ASPEL, promotion and improvement. APROSER, ASEJA, ASERPYMA, • Some examples are: AMI ASEMPLEO and the CEOE. • The State Observatory of the Cleaning Sector for buildings and premises. • The Private Security Sector Observatory.
The EULEN Group conducts its business in an ethical framework committed to respect for human rights and the principles of the Global Compact, to which it belongs since 2003. This is reflected in its Code of Principles and Values, which governs the relations of EULEN Group with all its Stakeholders. As a guarantee of its commitment to employees, EULEN Group has the following: • Equality plan. 7-year-old program aimed at promoting equality in all strata of the organization. ₋₋ In 2015, following the negotiation of this Plan with the most representative unions at a state level, the 2016-2020 Equality Plan of EULEN, S.A. was signed. ₋₋ In 2016, a system of internal and transversal monitoring has been carried out by the area coordinators, responsible for the compliance and monitoring of the Plan. ₋₋ The objective for 2017 is the appointment and definition of the line of work of these coordinators. • Prevention plan for all types of harassment. In Spain, EULEN Group has an ambitious Anti-Harassment Plan that exceeds what is required by law. This Plan establishes the necessary measures to prevent, avoid and eradicate workplace harassment. Likewise, it includes the detail of those actions that will be object of prosecution and sanction in case they occur. In 2016, the scope has been extended to more geographies, specifically to Latin America and Portugal. • Hiring Policy. Published at the end of 2016 in EULEN Spain. It establishes the basic hiring principles that are present in the culture of the company, but that were not formally included up until this date. The Plan takes into account
68 aspects such as hiring minors and nepotism. The objective is to extend it to other countries in 2017. As for the minimum period of notice in Spain, this is the one marked by the Workers’ Statute, except for improvements that may be included in the collective bargaining agreement in each case.
Internal communication with employees EULEN Group believes that communication with all employees must be fluid and transparent. To do this, it has different means that aim to keep workers informed of everything that happens in the company, and ultimately promote the feeling of belonging to the organization. The main communication tools used are:
• Internal magazine “Nosotros”, which is published quarterly and in digital format. It is a magazine for employees of the organizational structure and retired staff of the company, which reports on social and employee activities, as well as on the areas and countries in which the company is located. It contains articles, interviews, reports, etc. • Internal newsletters “Entre Nosotros”, destined to the direct staff of the company. It is published in printed format. It is also comprised of articles, interviews, reports, etc., that speak of acknowledgements to employees, thank you letters to customers, visits and internal activities of the company. • Employee Corporate Portal, operating since 2012 for all employees worldwide. Employees can access the Global Directory of employees to contact any colleagues in the 14 countries in which they are present, as well as the offices of the Group. In addition, “communities” can be created for the exchange of knowledge among employees.
These internal communication channels also provide an opportunity to bring the company’s values, mission and corporate strategy closer together. They also serve to directly share news about awareness campaigns, certifications, agreements signed with other companies or prizes and awards that have been granted to the 5 Sobre nosotros company. En un número más de la revista, recogemos los cuantiosos agradecimientos al trabajo diario FELICITACIONESde nuestros equipos de tra DE NUESTROS CLIENTES bajo. Así, nuestros compañeros de facility en Zamudio han recibi do la felicitación de Vodafone por los trabajos realizados, “re calcando lo dispuestos que habéis estado todos a colaborar, sin poner impedimentos ni pegas, y siempre con comentarios - profunda implicación en dar lo mejor de sí mismos y aportar constructivos. Primero por el trabajo bien hecho y segundo su parte, grande o pequeña, en el complejo engranaje que se por la satisfacción del cliente. Muchas gracias a todos por el puso en marcha para combatir el fuego”. Fuera de EULEN esfuerzo extra.” - - Asimismo, con motivo de la celebración de la Patrona e Ins En lo que se refiere a tituciones Penitenciarias en el día de la Merced, nuestra em madura, ha recibido la medalla de la Cruz Blanca de la Guardia presa ha sido galardonada con la entrega de una placa como Civil por el mérito al trabajo,seguridad siendo la única civil que recibió Reconocimiento al Grupo EULEN, que fue entregada por el Co esta distinción en esta ocasión. , Rosa Díaz, gestora en Extre mandante General de Melilla. De igual manera, la Guardia Civil del Aeropuerto de Melilla Por su parte, Airbus también nos ha enviado una felicitación ha felicitado a la vigilante de Seguridad Maite Aragón por de - - para nuestro personal de telecomunicaciones de manteni tectar a través de un escáner unos objetos sospechosos en el miento - interior del equipaje de mano, que resultaron ser tabletas de por el buen trabajo realizado en la unidad móvil del cliente. También, Vodafone nos ha felicitado por la actuación Ballet Nacional de España hachís. para “solucionar los problemas de insonorización del grupo - El Director del Aeropuerto de La Palma nos ha transmitido su electrógeno en el centro de Atocha, tanto por la rapidez para El Ballet Nacional de España (BNE) muestra todos los estilos del baile de nuestro felicitación por el operativo relativo al incendio porque “a to terminarlo en fecha, como por la efectividad de los trabajos”. país en los más destacados teatros del mundo a través de muy distintos espec dos los niveles la respuesta ha sido más que adecuada, de - - El Departamento de Calidad de Berlys ha dado la enhorabuena táculos que abarcan lo clásico y la vanguardia en “Suite Sevilla” o el folclore en mostrando cada trabajador, cada colectivo y cada empresa una nuestros compañeros de “Sorolla”. toría correctamente, “con comentarios muy positivos respecto Gira 2016-2017: http://balletnacional.mcu.es/index.php/es/giras al estado de limpieza de la limpieza planta. Es verdad que se realizó un refuerzo importante, pero a ver si podemos mantener las - al haber superado la audi zonas en este estado después de la limpieza a fondo realizada. - Enhorabuena por vuestro trabajo y que sigamos manteniendo - la planta en este estado.” - LA PREVENCIÓN ES COSA DE TODOS
Corporativo Basada en la biografía ‘Max Perkins: Editor of Genius’ de A. Scott Berg. Se trata de la ópera prima de Michael Grandage, que fue director artístico del aclamado Teatro Donmar Warehouse de Londres desde 2002 has- ta 2011, cuando sucedió a Sam Mendes. Estreno: NÚMERO 15 - NOVIEMBRE 2016 Género: 2 de diciembre Drama, biografía, historia El editor de libros “ Gracias al trabajo de inteligencia podemos evitar que las empresas tengan crisis de imagen”
U2 : Nuevo álbum Uno de los discos más esperados del próximo año es el nuevo álbum de la banda U2, quienes ya María Luisa Díaz, confirmaron el lanzamiento de “Songs of experience”, el cual también tendrá la segunda parte de analista de inteligencia de su gira durante el 2017. Este nuevo álbum llega como la segunda parte de “Songs of innocence”, lanzado en el 2014. EULEN Seguridad
En el Centro de Control de Villaverde de EULEN en Ma- drid, dentro de la Unidad de Inteligencia, cada día se re- caban miles de datos. Una ingente cantidad de informa- ¿Cómo desarrolláis el trabajo de in ción que es necesario procesar para filtrar lo que tiene teligencia y qué objetivos perseguís? valor de lo que no. Una vez separado el grano de la paja, Nuestra misión fundamental es ayudar a María Luisa Díaz, analista de inteligencia, elabora los in- la dirección de las empresas a tomar de- formes que se enviarán a las compañías que utilizan esa cisiones de calado para el futuro de las - operadores. Para ello tenemos herramieninformación- para asesorarse en la toma de decisiones. organizaciones, identificando los riesgos tas automáticas de obtención de informa- para reducir la incertidumbre en esa toma ción que nos ayudan a barrer la Red en de decisiones. Éstas pueden estar relacio- busca de contenidos que pueden ser re- nadas con proyectos de internacionaliza- levantes para nuestros clientes. Esta infor- Además de para clientes externos, ¿ha ción, operaciones de fusión y adquisición, mación puede alojarse en espacios web o céis labores de inteligencia también reestructuración de compañías, etc. Para en redes sociales y lo analizamos todo. El para EULEN? poder identificar estos riesgos, el procedi- 5% restante procede de fuentes humanas coordinamos algunos proyectos internos miento tiene dos niveles. El primero es la Efectivamente, también con las que trabajamos por medio de en- con el Departamento de Marketing, re- - obtención y el procesamiento de informa- trevistas o contactos puntuales. lacionados sobre todo con el posiciona- ción, donde los operadores realizan unas miento de mercado de EULEN y las acti- primeras cribas para separar los datos ¿Es tan importante monitorizar las re vidades que desarrolla la competencia. útiles de los que no. Después, los analis- des sociales para vuestro trabajo? Des- También trabajamos en proyectos ad hoc tas nos encargamos de tratarla en función de luego. Hay muchas empresas que están en los que intentamos aportar nuestras de los intereses de las empresas para las realmente interesadas en saber qué es capacidades y conocimientos para solven- que trabajamos y elaboramos informes lo que se dice de ellas en estos medios - tar problemas específicos, o apoyando la analíticos especializados, que son los que sociales, porque así pueden anticipar- labor de otras empresas y personas del contienen el valor añadido del trabajo de se a posibles crisis reputacionales que Grupo. inteligencia. tendrían un impacto importante en sus resultados. Esta información también es Ya para terminar, ¿qué significa para ti ¿De dónde obtenéis toda la información sensible cuando una empresa, por ejem- trabajar para EULEN? EULEN me dio la con la que trabajáis? Aproximadamente plo, está buscando socios y quiere cono- oportunidad que me hacía falta, así que el 95% la sacamos de fuentes abiertas de cer cuáles son sus valoraciones entre el estoy muy agradecida. Terminé la carrera Intenet, servicio del que se encargan los público, lo que la gente opina de ellos. Si de Ciencias Políticas en 2010, en plena sabes de antemano que una empresa con crisis, y después de cursar dos masters y la que te vas a aliar puede traerte proble- atravesar por una etapa de mucha incer- mas de imagen, quizá debieras buscar otro tidumbre no conseguía estabilizar mi si- compañero de viaje. tuación, así que cuando me llamaron para trabajar aquí fue una gran noticia. Además, me encanta lo que hago y estoy rodeada de gente fantástica con la que da gusto trabajar.
2016 Corporate Social Responsibility Report// EULEN Group 69 Remuneration policy The Remuneration Policy of EULEN Group is based on the following bases:
• A Fixed Remuneration System that compensates the employee for the performance of his job with fixed and consolidated amounts. The objective is to ensure internal equity and external competitiveness through the use of salary studies. • A Variable Remuneration System that works as a tool to direct employees toward the strategic objectives that the Company considers necessary for the development of the business. These are based on a Management by Objectives program that integrates economic, management and personal objectives, remunerating the employee for the achievement of these objectives. • A Flexible Remuneration Plan which makes it possible to adjust how part of the remuneration is paid depending on the personal and family needs of the employee, in a voluntary and individualized way. It allows the employee to replace part of their salary in cash for the contracting of certain products and/or services that have an advantageous tax treatment. ₋₋ In 2016, the preparation and start-up of a new product was made available within the Flexible Remuneration Plan in Spain. This is the “Group Savings Insurance linked to Retirement”, which allows employees to allocate part of their annual gross cash remuneration to pay a premium in a group savings insurance for retirement, contracted with Insurance Companies.
• Corporate Benefits that position the image of EULEN Group in the sector and the market, and which help guarantee certain basic needs of employees. In 2016, EULEN employees have benefited mainly from the categories of “vacations and travel”, “food and supermarkets”, and other categories such as items promoted exclusively by EULEN and “food and supermarkets”.
On the other hand, the Notes to the Consolidated Annual Accounts of the Company and the Consolidated Management Report, both dated 31 December 2016, detail the remuneration of the Senior Management.
Diversidad e integración
EL CAPITAL HUMANO DIVERSITY AND INTEGRATION Nuestro principal activo
In order to create a fair and rewarding environment that favors the personal and professional growth of employees, EULEN Group supports, through its Corporate Social Responsibility strategy, equal opportunities for all groups, especially the labor integration of people at high risk of exclusion.
70 The commitment to diversity by EULEN Group is based on the following points:
Gender diversity EULEN Group is committed to equality and diversity, and therefore applies this principle in all its human resources management policies: hiring, selection, training, performance measurement, promotion, remuneration, working conditions, reconciliation of family and work life, communication and prevention of harassment.
In 2016, women represented more than half of the workforce of EULEN Group (53.3%). To promote the role of women in the company, initiatives are developed to favor their access to Management positions. An example of this is the Presidency of the company, which is held by a woman.
46.7% 53.3%
Opportunities for young people
In 2016 Fundación Transforma SPAIN has developed the Multicompany Program, with the collaboration of several companies where EULEN Group is present. It is the first collaborative economy program in Spain. The participating companies share resources, and their talents, offering young people more diverse and rewarding development experiences. The program’s objective is the self-development of young people, as well as the knowledge and understanding of other realities with the rest of the team.
As for EULEN Group, our colleagues Emma Real González and Rafael Benítez Morales participated in the IX edition. Taking part as mentors were Marta Velayos Asiaín and Juan Carlos Moya García, accompanying young people in their development. Finally, Natalia Roldán Fernández and Jorge González Seoane, as directors of the Group.
Incorporation of people with some type of disability into the workforce
As of 31 December 2016, EULEN Group in Spain had 1,430 professionals with some type of disability in their workforce, which represents 3.01% of the Group’s workforce in Spain.
For EULEN, favoring the integration of this group and promoting their professional development is a priority. For this reason, it develops initiatives such as the provision of sign language courses for those employees who request it.
2016 Corporate Social Responsibility Report// EULEN Group 71 The following indicator reflects the evolution of this group in the company during the last three years:
PEOPLE WITH DISABILITIES IN THE WORKFORCE (NO. AND PERCENTAGE OF EMPLOYEES) 012345
2016 3.01%
2015 2.99%
2014 3.34%
PEOPLE WITH DISABILITIES IN THE SPECIAL EMPLOYMENT CENTERS OF EULEN GROUP (NO. OF EMPLOYEES) 50 90 130 170 210 250
6,78% 2016 223 8,40%
2015 177
2014 99 223.114
Labor integration of people at risk of social exclusion
Through collaboration with Fundación Integra, EULEN Group contributes to the hiring of people at risk of social exclusion with the 138 people hired aim of improving their financial stability, their personal autonomy and from groups with self-esteem. During 2016, 138 people from groups with a risk of social risk of exclusion. exclusion were hired.
72 Proof of the commitment of EULEN Group is the fact that in 2015 the company received a recognition by Fundación Integra for reaching the number of 1,500 hirings of groups at risk of social exclusion, since they started collaborating around fifteen years ago. This figure has now reached a total of 1,733 people. On the other hand, people over 45 are another group that faces several problems when it comes to joining the employment market. In this case, EULEN Group serves as an example, with more than 22,000 employees over 45 in its workforce, representing 47.2% of the total. In addition, the company takes part in different campaigns to raise awareness and include women who are victims of gender violence through public bodies, such as the Ministry of Health, Social Services and Equality, or by social entities such as Fundación Integra.
Incorporation of non-Spanish nationality people into the workforce of the company
Regarding non-Spanish nationality staff, in 2016, EULEN Group had a total of 1,783 employees in Spain, representing 3.71% of its workforce.
To promote the cultural integration of employees of different nationalities, the company offers an online course called “Diversity Management”, which deals with the different nationalities that make up the Group, and also the “Welcome Manual” translated into several languages (French, Arabic, Romanian and English) with the aim of adapting non-Spanish speaking groups as effectively as possible.
The following indicator reflects the evolution of this group in the company during the last two years:
PEOPLE WITH DISABILITIES IN THE WORKFORCE (NO. AND PERCENTAGE OF EMPLOYEES) 012345
1,763 2016 3.75%
1,662 2015 3.40%
1,622223.114 2014 3.31%
2016 Corporate Social Responsibility Report// EULEN Group 73 ELE CCAPITAPITAL HUMANHUMANOO DEVELOPMENT OF OUR PROFESSIONALS NuestrNuestro principalprincipal activactivo
DESARROLLO DE NUESTROS PROFESIONALES
Proper management and development of talent is one of the strategic bases of EULEN Group, as it strengthens its main asset: its employees.
EULEN Group is aware that in order to have the best professionals in the sector, training is essential, as it undoubtedly helps to offer a differentiated service and of true value to the customers. Based on this premise, the Company has specific talent development programs that foster the professional growth of employees and, ultimately, the sustainability of EULEN Group as a generator of employment and opportunities.
Training and education of employees 2016 has been a key year in terms of training activity in EULEN Group. Its excellent path in recent years has allowed the consolidation of what has been learned and the beginning of a new stage, where the training strategy has been defined for the next years. In this new training strategy, the main novelty has been the differentiation of the two organizations that will govern future training:
• EULEN Training Institute (IEF).
The training of EULEN Group employees is managed through the EULEN Training Institute (IEF), which identifies areas where training is required. Accordingly, this institute establishes the annual plans, organized in different training blocks. The annual training plans establish the training roadmap that each employee must follow in each professional stage. This allows them to develop skills and competences that ensure a proper professional development within EULEN Group:
• EULEN Corporate University (UCE). Throughout this year, an internal consultancy project has been carried out to establish the foundations of what will be the EULEN Corporate University from 2017 onwards.
The EULEN Corporate University is, in short, an evolution of the EULEN Training Institute. It is aimed at the training of indirect staff within the organization’s structure. Its main purpose is to support the achievement of the Company’s strategies.
Online training platform @prende: EULEN Group has an online training platform called @prende. Here, all employees have access to a catalogue of more than 400 training courses, videos, action plans and varied training tools that include specific training on services, skills, computer tools, etc. During 2016, more than 7,000 students have taken part. 48,174 people trained in Spain, 15.6% more than in 2015
74 Below are the main programs carried out this year:
INCORPORATION OR INITIATION IN THE COMPANY Introductory Training Program: Introductory training is given before the employee is finally incorporated into the job position. This training tries to provide a “learning path”. These training programs are customized according to the profile of the employee and their position. The training syllabus is designed according to the needs and requirements of the position to be covered. It can last from three days to three weeks, for in-person classes, complemented with online training.
Program for Young Graduates: This is one of the most valued programs by the Company. In this program, structured and complete knowledge on the company is provided to young people who enter it. In 2016, two programs have been given with a total of almost 50 attendees, who received training under the following training modules for three weeks: Organization and Company, Technical Training and Code of Ethics, and Training in Skills. After classroom/online training, the participants take an Immersion Program in different Departments of the Company.
Training on the Code of Ethics of EULEN Group: During 2016 and early 2017, all the indirect staff of EULEN Group received in-person or online training on the Group’s Code of Ethics, with the exception of Mexico, which conducted it in early 2017. The course is structured in the following sections: general concepts, case studies and ethical dilemmas
MATURITY Training Program in Office Tools and Corporate Systems: This training is ongoing inside the Company. From traditional software packages, to specific programs that are used internally. All of them are introduced with previous training, carried out in “cascade” mode in order to reach the last corner of the Company that needs this system. During 2016, one of the implemented modules was the VIVO program, an internal software of the Company.
Service Management Program (SMP): During 2016, the 4th class of the Service Management Program (former EULEN Supervision School) was carried out. The assessments received in this fourth edition, in line with previous years, reached a high score (9.03 out of 10).
Program for managers: New training module for direct staff called “Alineando personas en un mundo VUCA1 ” (Aligning people in a VUCA world 1), which serves as a complement to technical training. The objectives of the course are mainly two: On the one hand, to strengthen the motivation and leadership of the managers and, on the other hand, to help connect the services provided by EULEN Group with the realities of a world in constant change. In 2016, 61 employees were part of this initiative, and their feedback on the program was excellent.
Technical Schools: This program, which is offered only in online format, is available to students and covers four areas related to: cleaning, maintenance, environment and auxiliary services. It has been carried out with the Directors of each Department (regarding content and teaching staff) grouping all the internal knowledge in those matters.
1 VUCA: Volatility, uncertainty, complexity and ambiguity.
2016 Corporate Social Responsibility Report// EULEN Group 75 Technical Office Program: This training program is intended for Coordinators and Technicians in Offers of Facility Services. The objectives of this program are to increase efficiency and effectiveness in the development of offers, to share and exchange knowledge and experience, and to provide different solutions adapted to the customers’ needs.
Series of Conferences: In 2016, another round of talks called “Las conferencias de los jueves” (Thursday conferences) has been held. The aim is to promote informal training to help expand non-technical knowledge and foster a collaborative spirit.
School for Internal Trainers Program: In 2016, the development of the EULEN Trainers Program (ProFE) has been carried out, and it will be launched in 2017. This Program consisting of 12 modules will provide more training resources to the internal trainers of EULEN, thus responding to their needs.
CONSOLIDATION PROMOCIONA Program: This project aims to promote women’s access to Senior Management, Boards of Directors and other management positions. For this purpose, EULEN Group collaborates with the CEOE, the Ministry of Health, Social Services and Equality, the Norwegian Embassy, the prestigious business school ESADE and EEA Grants. There are already four female students who have had access to these programs.
DIRIGE Management Development Program: In 2014, the Design of the Management Development Program called DIRIGE was concluded, and the group chose the Business School (ESADE) to start their collaboration. During 2015, the first call was carried out with very good results. This year, 2016, the second call was also held with the same excellent results.
Universitas SENIORIBUS: In collaboration with the University of San Pablo CEU, the Company’s staff was offered the possibility to attend a course or individual subjects taught at this University. This program is intended for people over 50 years old.
Below we can see the distribution of hours of training for employees:
1% 11%
36% 52%
Mixed i ta resencialIn-person course
Remote istancia course E-learningE-Learning
76 Distribution by type of training 2016 offered (Spain) Mixed 11% Remote course 1% In-person course 36% e-learning 52% 611,836 hours of Training offered by region training offered in all of 2016 (hours) EULEN Group in 2016 EMEA 355,792 South America 135,515 North America 120,529
TOTAL 611,836
DEVELOPMENT AND TALENT EVALUATION PROGRAMS Development program: Leadership school These workshops are aimed at those professionals who EULEN believes has certain characteristics that make them possible candidates to promote to positions of greater responsibility: • Positive performance evaluation • Economic results that support them • Identification of potential after the relevant evaluations The aim is to provide the essential resources so they can acquire the necessary skills and develop their potential. The program has four gradual stages: 1. Self-knowledge: To demonstrate their leadership ability, the employee must start by learning about himself/herself. To do so, the employee undergoes a reflective process to acquire self-knowledge, to learn about their qualities, characteristics, beliefs and emotions with the help of the facilitator. 2. People Management Tools: These tools are focused on learning and experiencing techniques and resources that help the employee listen, empathize, voice, and decide on which is the most effective style of behavior. 3. Case Workshops: These are learning and experimentation spaces where participants are subjected to different work situations. In these cases, they assess how the employee assumes the situations that arise, as well as how the employee decides to act, make decisions and take responsibility for the results. The resolved cases are integrated as future contents to serve as practice in other workshops. 4. Transforming Leadership: To delve into the characteristics that a person must have and that generate significant changes in the Organization, they put into practice the skills that the employee must acquire when treating others, focused on obtaining two indispensable elements: impact and influence.
2016 Corporate Social Responsibility Report// EULEN Group 77 Development program: Mentor school For EULEN Group, the best way to convey knowledge, motivate the employee and help them become more productive, is through the example of people who have stimulated learning in their teams. Therefore, to ensure that the best practices and messages of the Organization are transmitted to the following generations, the Mentor School was created. Among the positive aspects of this program, we can highlight the following: • Motivation and recognition • Increase of professionalization and responsibility • Performance in the job position according to a common culture and philosophy • A less hasty and more planned and strict learning culture • Tangible economic and commercial results
Evaluation of Potential It allows learning about the capacities and motivations of the Group’s employees, to identify internal candidates, and to work in development programs that prepare them to carry out positions of greater responsibility in the future. Since 2013, EULEN Group has carried out these assessments in the following groups: operating staff, technicians, salespersons, middle managers and directors.
During 2016, the potential of up to 95% of the staff belonging to the organizational structure in Spain has been evaluated, under the modality of Assessment Center.
Performance evaluation The Performance Evaluation process is the instrument used by EULEN Group to verify the degree of fulfillment of its employees’ individual goals. Every year, performance evaluations are carried out by competencies, 180º to 100% of the employees that form part of EULEN Group’s structure in the 14 countries where it is present.
The process is carried out through a performance management tool via the Website, accessible from any device with an Internet connection. Using this tool, the employee must carry out their self-assessment, the evaluation of a colleague, and that of their own team. In the same way, the interviews of feedback carried out after the evaluation and the commitments of improvement assumed are also collected.
ELE CCAPITAPITAL HUMANHUMANOO HEALTH, SAFETY AND WELL-BEING NuestrNuestro principal activo Seguridad, salud y bienestar
EULEN Group undertakes the prevention of occupational risks as a commitment based on the protection and well-being of people; much more than a mere obligation derived from the applicable legislation. With this purpose, the company focuses its management on continuous improvement, in order to guarantee health and safety conditions that are beyond those specified by law.
EULEN Group has a Policy on the Prevention of Occupational Risks that affects all the company’s activities. In accordance with the provisions of this policy,
78 occupational risks are evaluated periodically and, as a result, actions are taken to raise the level of safety throughout the hierarchical line and in each of the stages of the production chain.
The company also promotes the configuration of a safe working environment and the well-being of its employees through training in Occupational Risk Prevention and awareness campaigns.
Training in the prevention of occupational risks During 2016, EULEN Group has provided training in the field of Occupational Risk Prevention to its employees (27,438 trained workers), aimed at detecting, anticipating, evaluating, controlling and reducing the various risks that result from their activities. In Spain, the areas provided for in the training plan are:
• Training under article 19 of law on Occupational Risk Prevention. hours of • Basic level training (Annex IV Royal Decree 39/1997). 288,297 training offered in ORP • Training for emergencies. in 2016. 17% more than in 2015 Awareness campaigns for employees EULEN Group has launched awareness campaigns through the main internal communication channels, in order to warn and inform employees about aspects relevant to the company, such as road safety or the correct use of chemicals, among others.
The main communication channels of these campaigns are usually documents attached to the payroll, articles in newsletters, magazines and/or on the Corporate Employee Portal.
The main awareness campaigns carried out in 2016 were:
Preventive Culture: En 2016, se ha continuado con la realización de campañas enfocadas a reforzar la cultura preventiva en la compañía como:
• Integration, “+ attitude”; • “Your ATTITUDE makes the difference” (Ability-power + Attitude-will); • Safety comes first: STOP, THINK, ACT.
Road safety: During 2016, EULEN Group continued to develop reinforcement campaigns during festivities, long weekends and/or seasons, with messages such as “Driving in winter” and “Work done by ALL”.
Health promotion: In 2016, campaigns for the prevention of cardiovascular and cerebrovascular diseases aimed at healthy habits were continued, providing information on “apps” that are on the market (Healthy menus, stop smoking, exercise, etc.) and “EULEN Group Cuida de ti” (EULEN Group takes care of you) (Offers in gyms, EULEN Club, TOMS, etc.).
Sharing vehicle: This initiative intends to remind of the advantages of sharing vehicle and facilitate contact between drivers through a virtual bulletin board, where employees can indicate the available seats in their vehicle (source/ destination, schedule, routes) or look for vacancies in another vehicle.
2016 Corporate Social Responsibility Report// EULEN Group 79 Featured case In 2016, a study of musculoskeletal disorders was carried out for the Cleaning activity, alongside the Mutual Insurance Company than partners with the Social Security “MC Mutual”, prior to the implementation, in different centers, of a behavior and awareness campaign.
Move Properly, Live Better!
Improvement of gestures and postures to prevent musculoskeletal disorders.
Occupational Risk Prevention Management Systems EULEN Group considers it a priority to ensure the highest level of safety for all its employees. For this purpose, it promotes safe and healthy work environments, and provides a framework that allows the organization to identify and control its health and safety risks, reduce the potential for accidents and ensure compliance with the law. This system is based on the following two pillars: COMMITMENT on behalf of the Prevention Service of EULEN Group to: • Provide a safe and stable environment • Continuously update the occupational risk prevention measures • Respect the regulations in force in all places where its activity is carried out • Comply with the Occupational Health and Safety aspects of the Conventions (provincial, state or sector) • Collaborate with all the units to fulfill their mission
DEFINITION OF RESPONSIBILITIES in preventive matters: definition and documentation of the responsibilities, functions and competencies of the system components, on behalf of the Group’s Management. COMMUNICATION to ensure correct information to all system participants, through standards, procedures, forms and instructions published in the regulatory system that is available to employees.
80 HEALTH AND SAFETY COMMITTEE, At the quarterly meetings held in each province, where the workers’ union delegates and the technical heads of the prevention department of the company take part, they deal with matters that the consider appropriate depending on the needs of each service.
Hercules Application Designed by the Joint Prevention Service of EULEN Group, the application is intended for the integration of prevention throughout the organization, and to ensure compliance with the requirements in prevention for all employees who carry out their job in Spain. It should be noted that, in 2016, the application was updated as a result of the design work carried out by EULEN Group’s Joint Prevention Service, together with the ICT department as the developer of the application. Improvements included in the update: • Adaptation to the requirements of our customers and the labor administration/ authority to obtain a better response. • Optimization of the volume of documentation to be delivered to workers, without compromising the quality of the information • New features that allow a better use of the application. • Saving time and costs.
Certifications EULEN Group aims to ensure the correct identification, management and control of the risks to which its employees are exposed, as well as compliance with the applicable legislation. For this purpose, EULEN Group has been subjected to external audits under the OHSAS 18001 standard, in order to verify that the procedures and practices that are carried out on ORP adequately conform to the requirements of OHSAS and are appropriately implemented. The OHSAS 18001: 2007 certification has been renewed for the following activities in Spain: • Cleaning • Maintenance • Security • Environment • Auxiliary Services Within the framework of the Management System, EULEN Group has documented procedures that establish guidelines, which are even more demanding than the current Spanish applicable law, on the management of health and safety of employees.
Accident rates The rates2 which are detailed below, allow us to assess the performance of the organization with respect to the accident rate recorded in Spain in 2016.
Through the digital platform Delt@ (acronym for Electronic Reporting of On-the-job Accidents, in Spanish), each on-the-job accident suffered by its own employees, and declared by the Mutual Insurance for Work Accidents and Occupational Diseases, is registered and notified to the Public Administration. The request and collection of the data will be conditioned, in the case of contractors, to those responsible for the contract.
2016 Corporate Social Responsibility Report// EULEN Group 81 In 2016, the incidence rate and the severity rate of work accidents increased, mainly due to an increase in activity in the companies: Corumba Tourism S.L, EULEN Centro Especial de Empleo S.A., EULEN Seguridad, EULEN S.A., and UTE LISAN, resulting in an increase in accidents at work and in number of days of leave from these companies.
TOTALS* BY SEX**
Occupaonal accident incidence rate (T) Occupaonal accident incidence rate (T) 60 80 70 50 61.42 60 52.84 52.82 40 50 46.4 30 40 30 20 49 57 20 10 10 4 02 0 2015 2016 2015 2016
Occupaonal2 disease incidence rate (T) Occupaonal1 disease incidence rate (T) 1.07 1.1 0.52 0.73 0.85 3,0 0.25 2 0 0 2015 2016 2015 2016
Accident1,5 severity incidence rate (T) Accident1 severity incidence rate (T) 0.65 0.76 0.75 0.72
0,10 0.69 0.74 0,30 0,0 0 2015 2016 2015 2016
0,05 0,15 Occupaonal disease severity rate (T) Occupaonal disease severity rate (T) 0.012 0.013 0.02 0.01 0.02 0.01 60 0,00 2015 2016 0,00 50 2015 2016
40,000000 Occupaonal40 accident frequency rate (T) Occupaonal accident frequency rate (T)
30 33,333333 35.02 27.94 32.25 30.1330.12 20 26.46 2015 2016 26,666667
Occupaonal disease frequency rate (T) 20,000000 2015 2016 1 0.42 0.48 Occupaonal disease frequency rate (T) 2015 2016 3,0 1 0.61 0.63 -2 0.14 0.3 Rate of1 absenteeism (%) 2015 2016
6 -2 0.61 Rate of absenteeism (%) -5 0.56 1,5 0 2015 2016 6 0.53 0.61 0.62 0.58 3 -5 0,0 Fatalies 2015 2016 3 11 0 Fatalies 2015 2016 11 0 2 2015 2016
Women Men
* Lost days are those in which the employee suffers some kind of disability, forcing them to cause work leave during a period longer than a work day, counting natural days. ** Data for financial year 2015 have been modified because calculations of rates by gender were being made on the total rate and as a percentage of gender (man, woman), instead of on the total corresponding to each gender.
2 Calculation formulas: Incidence Rate = (No. of accidents with leave / No. of employees)*1,000 Severity Rate = (No. of shifts with leave/No. of employees*Worked hours)*1,000 Frequency Rate = (No. of cases/ (No. of employees*Worked hours)*1,000,000 82 Absenteeism Rate = (No. of total leave days/Worked days)*100 Reconciliation of family and work life for the improvement of well-being EULEN Group is aware that supporting the reconciliation of work and family life of its employees leads to an improvement in work performance and a greater commitment to the company. Therefore, it promotes different measures that improve work reconciliation, as set forth in its Code of Ethics.
Among the initiatives that EULEN offers its employees, within its organizational structure, to reconcile personal and work life, are the following:
• Flexible schedule • Compressed work week • Intensive workday in the summer season • Flexible holidays • Sabbatical period • Temporary workday reduction • Acquisition (purchase) of additional holidays
Medical-Social Counseling Hotline EULEN Group offers its employees a telephone counseling and advice service - Medical-Social Counseling Hotline - managed by professionals through asmedit®. Employees can make any inquiries related to the medical, psychological, dietary/ nutritional and social fields. This service is available from 9 to 19 hours from Monday to Friday, except in the case of medical and social fields, which are available 24 hours a day, 365 days a year.
During 2016, this service has handled a total of 771 queries, distributed as follows:
Social 42.93%
Medical doctor 40.34%
Psychological 12.32%
Dietary 4.41%
2016 Corporate Social Responsibility Report// EULEN Group 83 Cleiner Chamaya -PERU- Creation of value Ü Relationship with customers beyond our Ü Responsible management of the supply chain company Ü Relationship with society
84 100% of new suppliers have signed and accepted EULEN Group’s Integrated Management Policy and Code of Conduct in 2016
EULEN Group bases its business model on ethics and transparency in the management of relations with its stakeholders, and on the creation of mutual value through its operations.
The Group extends its principles and values along its value chain, through responsible management of the supply chain, establishing links with its customers beyond the commercial relationship, and through commitment towards the society in which it operates.
Proof of this commitment is the application of the requirements of its Code of Ethics to suppliers, subcontractors, customers and all those who have legal relationships with EULEN Group.
7.71 Rate of customer sasfacon, Relationship which is 3.5% higher than with customers in 2015.
CREATION O VALUE Responsible Relationship management with society of the supply chain
The launch of a communicaon campaign to aract young talents 76.41% in purchases from approved 2020 EULEN suppliers. Future People
2016 Corporate Social Responsibility Report// EULEN Group 85 Lines of action 2016 Milestones 2017 Challenges
Relationship with • Sectorisation and Specialization of our servi- • Implementation of a new trading system Customers ces. with a triple purpose: • Implementation of the planned stages of the » Sectorisation of the Commercial Mana- new Strategic Plan. gement. » Implementation of a work system that promotes cross-selling. • Specialization of the sale according to the type of customer. • Definition of an integral service model that provides a differential value to its custo- mers, allowing the integration of several activities into a single service.
Updating of management • Digitalization of the supplier approval tools process. • Automatic process for the accounting and payment of suppliers - 100% of invoices managed with optical character recognition (OCR). • Update of the AS400 Purchases Module in a more visual format in the Windows environ- ment (Front of Purchases).
Reduction of emissions • Efficient management system of the vehi- cle fleet (routes, maintenance and purcha- se of new vehicles).
Efficiency in resource • Development of a centralized machinery management park as part of the fixed asset manage- ment system.
Promotion of the EULEN • Consolidation of the use of corporate • Increase the number of followers on cor- Group brand on Social profiles on Social Networks (Facebook and porate profiles of Social Networks, through Networks and digital LinkedIn), social, support or information recruitment campaigns (advertising). platforms posts and direct and instant communication • Conclude the plan for international web with users. platforms. • Analytics and positioning of EULEN Group’s content on Internet search engines. • Improvement of the web communication channel with users. • Improvement of the company’s image through multimedia contents (3 videos) and commercial material (23 brochures).
86 Lines of action 2016 Milestones 2017 Challenges
External promotion of • Launching of a communication campaign to attract young talents, promoting quality employment in this group. • Launching of an awareness campaign on the International Day against gender vio- lence regarding the company’s accession to this remembrance day, along with em- ployees, society and customers. • Promotion of a cultural project together with the Cathedral of Cuenca and the Jun- ta de Castilla-La Mancha: La poética de la libertad. Reinforcement of the • Develop a communication plan for new image of EULEN Group social projects (AUARA and Tapones Fun- towards social causes dación Seur).
upporting CSR • Presence in 50 forums and events related • Accession to FORÉTICA. initiatives to CSR, compliance, gender violence and • Renewal of the commitment as a partner equality. of the United Nations Global Compact in • Presence in six meetings organized by UN- Spain, and extend it to other countries. Global Compact. • Registration of the 2016 Corporate Res- • Registration of the 2015 Corporate Respon- ponsibility Report on the Platform of the sibility Report on the Platform of the Minis- Ministry of Labor, Social Affairs and Equa- try of Labor, Social Affairs and Equality. lity. • Signing of a collaboration agreement with OXFAM INTERMON for the responsible purchase of products.
Arantxa Galián -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 87 RELATIONSHIP WITH CUSTOMERS
For EULEN Group, customer satisfaction is a strategic objective that directly influences the evolution of the business and the continuity of the Company over time. EULEN Group intends to remain the first choice for its customers, thanks to excellent and innovative services that meet their needs and expectations.
In an increasingly competitive environment, the opinion of the buyer when it comes to the choice of different products or services is becoming more decisive. When making a purchase decision, the opinions other customers have on a service are valued. This is why EULEN Group must focus its efforts on promoting excellence in the execution of all the services that are part of its portfolio.
On the other hand, it is essential to be recognized as a company that generates trust in society, that plays an important part in the development of people, showing respect for the environment and, in general, honesty and transparency.
EULEN Group offers products and services to more than 7,000 customers, both from public administrations and the private sector. The customer portfolio distribution in the last financial year is as follows:
Sectoral distribuon of customers Distribuon of customers by categories
Transport, communicaons and public services 22% 20% Official organizaons
Finance, insurance and Real Estate 31% 21% 23% Retail 69% Others* 7% 2% Manufacturers 5% Services Public administraon
* Wholesalers, several and natural persons, construcon and Private sector contracng, agriculture, forestry, livestock and fishing, and mining.
Service quality In order to ensure the quality of the services offered to its customers, EULEN Group has implemented a quality management system according to ISO 9001: 2008, implemented in seven countries (Spain, Portugal, Mexico, Peru, Chile, Colombia and the Dominican Republic), which represent 92% of Group sales.
This system includes both the correct administration of the services offered to the customer, as well as the communication and relationship with its stakeholders, to ensure continuous improvement in quality management.
88 During the last quarter of 2016, the necessary steps were taken to make the transition to the new 2015 version in the EULEN Group countries certified under this Standard, therefore adjusting the Group’s Quality Management System to its new requirements. In this regard, adaptation efforts have focused on the following aspects of the new standard: • Customer focus. • Leadership. • Commitment to people. • Managing relationships and understanding the needs and expectations of the company’s stakeholders. • Focus on processes. • Commitment to continuous improvement. • Decision-making based on evidence.
In should be noted that during 2016, as in 2015, there were no significant sanctions or incidents regarding non-compliance with regulations and voluntary codes related to the impact of products and services on health and safety during their life cycle.
Similarly, there have been no significant fines for noncompliance with laws and regulations in 2016, concerning the provision and use of products and services of the organization.
Beatriz Gómez -SPAIN-
2016 Corporate Social Responsibility Report// EULEN Group 89 Customer satisfaction Customer satisfaction in relation to the services offered is based on the measurement of indicators of service delivery and perceived quality.
In 2016, the Company continued the Globalized Customer Satisfaction campaign in the seven countries where the Group is ISO 9001:2008 certified.
Therefore, according to the campaign carried out between November 2016 and February 2017, the Customer Satisfaction Index (CSI) of the Group was 7.71, compared to 7.46 obtained in 2015.
It is worth mentioning the improvement in customer satisfaction results in Colombia, Chile and Peru, countries where good performance has led to a continuous increase in satisfaction since 2014.
Increase of 3.35% in the Customer Satisfaction Index (CSI) compared to 2015
2015 Customer 2016 Customer Variation COUNTRY Satisfaction Index Satisfaction Index 2015-2016 % EMEA 7.56 7.37 -3% North America 7.72 7.58 -2% South America 6.78 7.45 +10%
TOTAL 7.46 7.71 +3.35%
On the other hand, the company provides its stakeholders with a channel for complain management, compliments and customer service from the corporate website of EULEN Group: www.eulen.com.
Accessibility to the services EULEN Group has the duty and responsibility of making their services, facilities and communications accessible to the whole of the society, especially for those groups that are more vulnerable. The company works each day to improve the accessibility of documentation provided to customers, the digitization of manuals, the adaptation of documents to Braille language, and applying the standards of the State Reference Centre for Personal Autonomy and Technical Aid (CEAPAT) to improve accessibility to websites and documentation. In this sense, in 2016 EULEN Group has focused its efforts on the adaptation of its services, mainly regarding to aspects: • Adaptation of social and healthcare services for the elderly or disabled. • Adaptation to people with training deficits, promoting basic education among employees who did not have access to it. This action has been carried out mainly in the Latin American countries of the Group.
90 LOPD As in previous years, in 2016 the Group did not receive any requests or reports from the Spanish Data Protection Agency, nor has there been any significant sanction regarding leaks, theft or loss of personal data. Regarding the Organic Law on Data Protection, EULEN Group applies security and control measures to prevent any kind of incident that could violate the privacy rights of all stakeholders working with the Company.
RESPONSIBLE MANAGEMENT OF THE SUPPLY CHAIN
Aware of the impacts that arise along the value chain —in terms of human rights, working conditions and other social and environmental impacts— EULEN Group ensures responsible management of its supply chain, a key factor in its business commitment. To tackle this complicated challenge, the organization extends the requirements of its Code of Ethics to suppliers, subcontractors, customers and all those who have legal relationships with EULEN Group.
The responsible management of EULEN Group’s supply chain is mainly structured according to two aspects:
Local supply EULEN Group believes in local supply as an opportunity to build relationships with the community, while it brings other advantages with it, such as reduced transport costs and, in turn, reduced emissions.
For the company, local suppliers are those that operate in the geography where the EULEN Group carries out its activity. In Spain, the percentage of purchases from local suppliers, compared to the total number of approved suppliers, has increased in the last three years, as we can see from the following chart:
PURCHASES FROM LOCAL SUPPLIERS 1
223 114
201 201 2016
2016 Corporate Social Responsibility Report// EULEN Group 91 Strict control of suppliers of goods and services In terms of the strictness when it comes to contracting goods and services, EULEN Group takes into account responsible purchasing criteria. With this purpose, the Group has an approval system to know, verify and monitor the responsible performance of companies that provide products or services for the activity of EULEN Group. In addition, the company makes sure that all suppliers, contractors and subcontractors with whom it works, comply with its policies through the internal purchase process. This allows them to identify areas that need improvement, as well as to favor those suppliers whose performance meets the requirements demanded by EULEN Group. The following diagram summarizes the stages of the approval process that any supplier or subcontractor has to pass before they start their business with EULEN Group.
Approval Process Key Indicators • 122.05 million in total purchases. Total purchases from suppliers • 48% in purchases from local suppliers Supplier approval requirements • Product / Service • Personal qualification • Quality and Environment • Provisions on Employment Matters
• €93.25 million in purchases from approved Approved suppliers suppliers*. Requirements for approved suppliers • 76.41% of purchases from approved suppliers*. • Acceptance of the Integrated Management 100% of new suppliers signed the Code Policy • of Ethics and accepted the Integrated • Signing of the Code of Conduct Management Policy. • Completing the form on Safety Conditions and Technical Features
• 168 assessments to critical suppliers in 2016. Start of its activity with EULEN Group
Annual assessments to critical suppliers • Adaptation to company standards • Meeting delivery times • After-sales service • Delivery of requested amounts • Overall satisfaction with the Supplier • Price
Audits to approved suppliers • Internal Audit Department • EULEN Group customers
* Occasional or timely purchases that do not correspond to services of subcontractors or investments, are not subjected to the approval process.
92 A) Approval requirements for suppliers of goods and services Approval is the process used by EULEN Group to establish the requirements that suppliers must meet in order to supply products or services. This process takes place before the commercial activity begins. Although most of the purchases are carried out through the approval process used in the company, certain occasional or timely purchases that do not correspond to services of subcontractors or investments, are not subjected to the approval process described in this chapter.
Some significant figures show the importance that the approval process has in the company:
• The volume of purchases from approved suppliers is of 93.25 million euros (76.41% of total purchases). For the approval of suppliers, EULEN Group establishes some previous requirements that must be met. These requirements are applicable to all items and materials referred to as “consumables”, purchases of machinery and all the contracting and/or subcontracting of works or services, as well as the purchase of items that EULEN Group acquires from third parties.
Specifically, the Group requires the submission of the following: • Approval of the product or service, procedures, processes and equipment. • Staff qualifications. • Management systems: Quality, Environment, Energy Efficiency, ORP and Data Protection. • Compliance with labor provisions in force. After receiving the requested documentation, the Procurement Department carries out, through a digital questionnaire, an evaluation that analyses different aspects that will condition the initial acceptance of the supplier:
• Environmental and energy management. • ORP management systems. • Percentage of workforce members with some kind of disability. In addition, as part of the acceptance process, the Audit Department prepares reports on the environmental, energy, quality and ORP performance of the suppliers and subcontractors analyzed. They are also provided with a copy of the Company’s Integrated Management Policy.
B) Requirements for approved suppliers Upon acceptance, approved suppliers, contractors and subcontractors of EULEN Group are required to sign and accept the “Integrated Management Policy” and the “Code of Ethics” of EULEN Group. In 2016, 100% of new suppliers of the company signed these documents, accepting to:
• Stock up with products that generate the least possible amount of waste. • Prioritize products that have eco-labeling or environmental quality guarantee marks. • Prioritize herbicides and slow-release pesticides. • Buy products with energy efficiency certificate marks.
2016 Corporate Social Responsibility Report// EULEN Group 93 • Having specifications and operating instructions in situations of environmental risk for cleaning products, paints, etc. • Not exceed the limits established by law in terms of emissions and discharges. • Comply with the established legislation on noise emissions by certain equipment for outdoor use.
In the event of possible non-compliance, suppliers will be assessed from an environmental point of view.
Suppliers of chemical products must ensure the correct labeling and packaging of the chemicals they supply, in accordance with current regulations. They must also provide the Procurement Department of EULEN Group with the technical product information, correct form and conditions of use and safety features:
• Safety Data Sheet - updated according to current regulations. • Technical Data Sheet. This information will be available to all employees, through the Employee Corporate Portal.
According to Spanish law, dumping, discharge or uncontrolled disposal of waste is prohibited. In the event of the disappearance, loss or escape of any waste, the competent authorities in the corresponding Spanish Autonomous Community shall be notified immediately.
In this regard, EULEN Group has internal procedures that define the conditions of storage and treatment of waste (hazardous and non-hazardous).
During 2016 there were no breaches of regulation and voluntary codes related to information and labeling of products and services that have derived in fines, sanctions or warnings.
C) Assessments and audits to suppliers The Procurement Department conducts an annual assessment of a representative sample of critical suppliers (defined by the company according to purchase volume and according to the Technical Divisions of each line of business), to exercise proper control over the supply chain. These assessments are made up of qualitative and quantitative evaluations, and they enable action and decision making. The criteria considered in this assessment are: • Product in line with company standards • Meeting delivery times • After-sales service • Delivery of requested amounts • Overall satisfaction with the Supplier • Price
94 During 2016, a total of 168 assessment were carried out to suppliers working with the company, which is an increase of 26.6% compared to 2015.
26.6% more evaluations to suppliers than in 2015
In order to ensure continuous compliance with the requirements, the accepted supplier can be audited both by the Internal Audit Department of EULEN Group and by the company’s customers. In 2016, none of these audits have been performed.
RELATIONSHIP WITH SOCIETY In order to bring the image of the Corporate Brand, as well as the different lines of business and specific services, closer to its main stakeholders, EULEN Group carries out several marketing, communication campaigns and events to inform about relevant facts for the company and move towards greater transparency.
Communicative actions During 2016, EULEN Group has continued to develop its communication strategy based on the development of four types of activities. In a complementary way, these help the company to know about external opinion and increasingly search for more means to be closer to all its Stakeholders.
Media impact analysis Press Releases
702 news articles that refer to EULEN 36 press releases about: Group. • awards and distinctions, • agreements with other companies, • agreements for employment and training
Awareness-raising campaigns Events
Dissemination of awareness-raising 5 events: campaigns through: • total attendance of 181 companies • social networks. and 295 people, • website. • satisfaction index of attendees to events of 8.6 out of 10, on average.
2016 Corporate Social Responsibility Report// EULEN Group 95 Once again, it should be noted that this year, no cases of non-compliance with the regulations or voluntary codes related to marketing communications have been identified or registered.
EULEN Group in the media The following are examples of important publications that refer to EULEN Group. News:
La Vanguardia, 11/01/2016
Expansión, 22/06/2016
Expansión, 28/06/2016
El País, 22/06/2016
96 Supporting CSR initiatives EULEN Group actively collaborates with several organizations that are renown in the field of Corporate Social Responsibility. The presence of the Group in CSR events has been significantly higher in 2016, allowing to increase the visibility of EULEN Group as a company that is highly involved in sustainability. Some of the most important events are: • Presence in 50 forums and events related to CSR, compliance, gender violence and equality. • Participation in the 6 meetings organized by UN-GLOBAL COMPACT in 2016 • Participation in the course “Hambre Cero: es posible” (Zero hunger is possible) Network Spain organized by the Universidad Complutense de Madrid in collaboration with FAO WE SUPPORT (Food and Agriculture Organization of the United Nations), which took place in July at Euroforum, El Escorial.
As an important milestone, the Group registered the 2015 Social Responsibility Report on the Platform of the Ministry of Employment and Social Security of Spain, which was recently created for the publication of CSR reports. Regarding the 2016 CSR Report, it will be equally registered on the above- mentioned Platform. In 2017, the Group plans to sign up as a partner of Forética, an association of companies that promotes the integration of social, environmental and good governance aspects in the strategy and management of companies. Likewise, the Group will renew its commitment to the UN Global Compact by extending its commitment to other countries where EULEN is present. During 2016, the 2020 EULEN Future People project has been started. This is a recruitment project that allows the professional development of newly graduated people. The purpose of this initiative is to generate awareness of a brand with social values within a young audience in search of employment, as well as to attract talent and provide their first professional experience. The project was carried out through different means: Specific website of the project with all the information about the positions offered, the philosophy and the values of the company. • Display advertising on the corporate website and on the web of the Psicotec consultant, which developed the selection of staff. • Several posts on the social networks of the consultant and EULEN Group. • Advertising campaign on LinkedIn with 150,000 impressions. The results were very positive, achieving around 10,000 visits to the project website. Out of these visits, over 1,000 came from EULEN Group’s website. Likewise, the most significant impact has been generated on the profiles of social networks, reaching more than 120,000 impressions, or people reached, through the posts that have been published. Among these impressions, more than 2,000 positive reactions have been generated.
2016 Corporate Social Responsibility Report// EULEN Group 97 Álvaro López -SPAIN-
Environmental Ü Commitment to Environmental Management Ü Efficiency in the Consumption of Resources impact management Ü Reduction of Emissions
98 EULEN Group remains firmly committed to protecting the environment, preventing pollution and adapting and mitigating climate change. At the same time, climate change represents a growing opportunity for environmental services.
The Group’s goal is to offer services that commit to the environment and sustainability as a sign of identity and a differentiating element, based mainly on two fundamental pillars:
• The sustainable use of resources throughout their life cycle, through optimization of consumption, reuse and responsible waste management. • The reduction and offsetting of CO2 emissions through the application of energy efficiency measures, both in our facilities and those of our customers.
In this sense, the organization’s Environmental Management System constitutes an essential part of EULEN Group’s activity. The company focuses its efforts on the continuous improvement of its environmental performance by measuring and analyzing environmental indicators associated with the significant environmental aspects identified in its activities.
EULEN Group’s activity takes into account three lines of action:
ISO 14001 re-cerficaon process in 6 of the 14 countries where EULEN Group Commitment is present to environmental management
COMMITMENT TO SUSTAINABLE DEVELOPMENT Reduction Sustainable of emissions use of resources
Reducon of total CO2 Reducon of electricity emissions by consumpon by
1.5% compared to 2015. 17.1% Reducon of paper consumpon by 1.3%
* The scope of the quantave data of the Environment chapter corresponds to the offices of EULEN Group in Spain, excluding work centers and EULEN Flexiplán.
2016 Corporate Social Responsibility Report// EULEN Group 99 Lines of action 2016 Milestones 2016 Challenges • Start of the adaptation processes of the new • Attainment of the new version of ISO version of ISO 14001:2015. 14001:2015 certification in six countries. Commitment • Renewal of ISO 50001 certification for • Implement EULEN Group’s environmental to EULEN, S.A. at the Vizcaya headquarters. management system in three new countries: environmental • Design of a new computer application for the • Panama, Costa Rica and USA. management Management of Environmental Performance • Conclude the implementation of the Indicators of EULEN Group. computer application for the Management of Environmental Performance Indicators.
• Promotion of circular economy and • Comply with the consumption reduction goals sustainable management in our customers set for 2017: 10% in water, 3% in electrical with four initiatives: Reuse of pruning debris, energy, 5% in the purchase of paper, 4% in adaptive irrigation systems, reuse water and hazardous waste and 9% in non-hazardous use of mulching in the conservation of green waste Sustainable use areas. • Continue and expand the environmental of resources • Acquisition of 145 scrubbing machines that awareness campaign of the Group, launched have eco-efficient devices and technologies, in 2008, as well as extending it to all countries and a bio-chopping machine for the use of where EULEN Group is present. plant remains. • Implementation of environmental training through a specific course for all staff of the Group’s organizational structure.
• Preparation of Energy Audits, in compliance • Participate in the International Congress on with Royal Decree 56/2016 in six buildings of Climate Change and calculate the Carbon EULEN Group, as well as in three buildings of Footprint of the event. our customers. • Continue the progressive renovation of • Implementation of energy efficiency the machinery park in the cleaning activity measures carried out at the headquarters, replacing it with machinery that has eco- other facilities and at a customer center. efficient devices and technologies. • Renovation of the fleet by replacing • Obtain the Certificate of Conformity for the conventional vehicles with 6 electric Classification of Energy Service Providers, vehicles, in conservation activities of green according to the AENOR Specification EA055. areas. • Continue the project “Inventory, calculation • Registration of EULEN, S.A. in the Carbon and offsetting of CO2emissions”, started in Footprint, offsetting and CO2 absorption 2016 by EULEN Group. projects registry of the MAPAMA, at a state • Create the EULEN Forest (Bosque EULEN) as Reduction of level, and with the Spanish Group for Green a compensatory measure to capture the CO2 emissions Growth. emissions reported by EULEN Group. • Registration of EULEN, S.A. in the Registry of • Implement environmental policies related Energy Service Providers of the Directorate to chemicals and reduce the volume of General of Industry (DGI) of the Community packaging waste as a result of these policies. of Madrid and at a state level. • Provide training to staff specialized in handling • Performance of Inventory, calculation and replacing fluorinated gases: exceed 20 and offsetting of CO2 emissions at the courses and 150 trained employees. headquarters and at our customers’ premises. • Design of the Integrated Service of vegetation covers for customers. • Use of 3.7% of concentrated chemical and 0.2% of organic chemical of the total units of product consumed in 2016, in the provision of cleaning services in facilities.
100 COMMITMENT TO ENVIRONMENTAL MANAGEMENT
EULEN Group’s environmental management is handled by the company’s Quality and Environment Department , based on the Group’s Integrated Management Policy on Environment, Quality and Health and Safety.
Integrated Management Policy EULEN Group’s Integrated Management Policy was revised in 2016 and communicated to the main stakeholders (employees, customers, suppliers and society) through various communication channels, including EULEN Group’s website, the intranet, and through the commercial agreements signed with suppliers and subcontractors.
The Integrated Management Policy gathers the different lines of action in Environmental Management (ISO 14001), Quality Management (ISO 9001) and Occupational Health and Safety Management (OHSAS 18001), allowing the Group to obtain synergies between the three systems, achieve a global vision of management and align this integration with its business strategy. Through this Integrated Management Policy, EULEN Group remains firmly committed to protecting the environment and preventing pollution.
ISO 14001 management system In 2001, the environmental certification program was started in the Group in accordance with ISO 14001, whose scope in 2016 covers the company’s environmental management in six countries: Spain, Portugal, Peru, Mexico, the Dominican Republic and Colombia. These countries represent approximately 85% of EULEN Group’s invoicing.
Through the environmental management system, EULEN Group aims to improve its environmental performance through the implementation of environmental policies and objectives, the identification of significant environmental aspects and the establishment of systematic processes and controls aimed at continuous improvement. This system is not only a management tool but a decision-making tool for the Senior Management.
In this sense, during 2016 the company initiated the necessary actions to make the transition to the new 2015 edition of ISO 14001 Certification in the six EULEN Group countries certified under this international standard. Efforts in relation to the new requirements have been focused on the following points: environmental awareness of its stakeholders, reinforcement of the circular economy perspective or the life cycle of our services, and identification and prevention of associated environmental risks related to our activity.
The six EULEN certified countries are expected to be certified under the new version of the Standard during the first half of 2017.
On another hand, we have the renewal of ISO 50001 certification on energy management systems for EULEN, S.A. at the Vizcaya headquarters.
2016 Corporate Social Responsibility Report// EULEN Group 101 Environmental costs and investments (G4 EN31) In 2016, EULEN Group’s effort towards environmental management has resulted in a 239% increase over 2015 in environmental expense and investment.
This increase is mainly due to the investments made in the renewal of the fleet, change of luminaires and expenditure on less polluting chemical products.
Variación Environmental costs and investments (€) 2015 2016 2015/16 (%) Waste collection and treatment by 27,237 29,581 8.6% authorized managers
Installation of monitoring systems for 0 3,853 NA electricity consumption
Expenses for audits and/or environmental 42,137 45,803 8.7% certificates*
Consultancy on environmental legislation 2,930 3,930 34.1% and registration with environmental associations
Expenses for less polluting chemical products 0 381,267 NA (ecological and concentrated)
Environmental training 280 5,100 1,721.4%
Total Environmental Expense 72,584 469,534 546.8%
Purchase of sustainable cleaning 360,425 821,963 128.1% machinery
Renovation of the fleet of vehicles 0 95,073 NA incorporating electric vehicles
Acquisition of bio-chopping machines 0 7,441 NA
Replacement of the luminaire system in the 29,797 95,455 220.3% delegations of Madrid and Barcelona
Replacement of the air conditioning system 0 74,684 NA in the Company’s Headquarters
Replacement of the lighting system in the 0 5,666 NA Company’s Headquarters
Total Environmental Investment 390,222 1,126,166 182%
TOTAL (ENVIRONMENTAL COSTS AND INVESTMENTS) 462,806 1,569,816 239.2% * The expenses indicator for environmental audits and/or certifications has undergone changes in the calculation method. These expenses have been applied retrospectively to the 2015 information. UA: Unavailable; NA: Not applicable.
102 If we take into account the average investment in the 2011-2015 period, the inves- tment in 2016 was 113% higher:
2011 2012 2013 2014 2015 2016
Environmental costs 1,332,275 542,381 803,482 810,871 462,806 1,569,816 and investments (€)*
Average environmental costs and investments: 790,363 €
*The data corresponding to 2015 has undergone changes with respect to the figure reported in the 2015 CSR Report.
EFFICIENCY IN THE CONSUMPTION OF RESOURCES
In all its activities and services, EULEN Group seeks to optimize consumption of resources and raw materials, promoting efficiency and sustainability.
Paper consumption In 2016, EULEN Group’s paper consumption has been reduced by 1.3% compared to 2015. In this sense, the company continues to work on the sustainable use of this resource and the promotion of digitization. As a novelty, in 2016 the electronic signature was implemented for the contracting of flexible remuneration services by employees, as described in the suppliers’ chapter. In addition, EULEN Group only purchases FSC and PEFC certified paper or paper with the European ecolabel.
Consumption and measures Variation 2014 2015 2016 to mitigate impact 2015/2016 (%)
Paper consumption (Kg)* 56,024 55,045 54,326 -1.3%
* Paper consumption for 2014 and 2015 has been recalculated due to the use of more precise calculation criteria.
Water consumption In 2016, water consumption increased slightly in spite of the initiatives developed by the company in the efficient management of this resource. Environmental awareness campaigns for employees regarding sustainable water use will become more intensive in subsequent years with the aim of reducing water consumption. Likewise, eco-efficient machinery will continue to be acquired and the obsolete and water- consuming machines will be discarded. This way, these replacements will be reflected in the water consumption figures.
Variation Water (by source)* 2014 2015 2016 2015/2016 (%) Tap water (m3) 7,849 7,976 7,994 +0.2%
Well water (m3) 4,850 4,718 4,937 +4.6%
TOTAL 12,699 12,694 12,931 +1.9% * Water consumption has been recalculated for 2014 and 2015 due to increased availability of invoices.
2016 Corporate Social Responsibility Report// EULEN Group 103 Energy consumption In its strategy for mitigation and adaptation to climate change, in 2016 EULEN Group carried out several initiatives in matters of luminaires and air conditioning that have allowed to improve the energy efficiency of both the company and its customers: • At the headquarters of EULEN Group, the office air-conditioning system has been replaced by a more energy-efficient one (Variable Refrigerant Volume technology with two pipes) that uses a refrigerant with lower atmospheric heating capacity (the R-410a instead of R-22). On the other hand, the group has replaced of halogen lamps with LED lights in bathrooms and corridors, along with the installation of presence detectors. • At the offices of EULEN Group in Madrid and Barcelona,the lighting system has been replaced by a more energy-efficient LED system. • 3,143 luminaires were replaced by LED technology at the Pórtico Shopping Centre in Madrid. One of the main services in 2016 has been the design of the Integral Service of vegetation covers. This service consists of the design, construction and maintenance of covers and vertical gardens with the aim of integrating the buildings both into the landscape and the environment. These works offer customers the possibility of reducing their carbon footprint, of becoming more energy efficient and improving the habitability of the property.
At the same time, different initiatives have been carried out within the company, which have not only optimized consumption, but also improved efficiency in different environmental aspects. Worth mentioning is the acquisition of six electric vehicles for conservation activities in green areas, the incorporation of the consumption control system and instant mileage in vehicles. This control system, allows to prevent and correct habits or behaviors that are not in line with the environmental policy of the company.
As a result of these initiatives, in 2016 the group has managed to reduce electricity consumption by 17.1%, 50% of the consumption of diesel in the facilities and 18% in the consumption of diesel for machinery. In overall terms, EULEN Group’s total energy consumption was 1.1% lower than in 2015, and 6% lower compared to 2014.
104 Variation Energy consumption* 2014 2015 2016 2015/2016 (%)
Diesel (GJ) 1,767 1,716 1,587 -7.5%
Diesel for vehicles (GJ) 137,241 132,000 135,338 +2.5%
Diesel for machinery (GJ) 19,736 16,929 13,829 -18.3%
Natural Gas (GJ) 1,405 1,076 1,409 +31%
Electricity (GJ) 13,483 13,081 10,838 -17.1%
TOTAL 173,632 164,802 163,002 -1.1% * Energy consumption has been recalculated for 2014 and 2015 due to increased availability of invoices.
Variation Electricity* 2014 2015 2016 2015/2016 (%) CElectricity consumption 3,745,403 3,633,745 3,010,576 -17.1% (KWh)
* Electricity consumption has been recalculated for 2015 due to increased availability of invoices.
Variation Fuel* 2014 2015 2016 2015/2016 (%)
Diesel (liters) 48,650 47,250 43,696 -7.5%
Fuel for machinery (Liters) 548,095 470,141 384,047 -18.3%
Natural Gas (m3) 39,324 30,116 39,459 +31%
Fuel for vehicles (liters) 3,811,363 3,665,805 3,758,530 +2.5
* Energy consumption has been recalculated for 2014 and 2015 due to increased availability of invoices.
2016 Corporate Social Responsibility Report// EULEN Group 105 Waste management and registration EULEN Group seeks to ensure, at all times, the control of the management of waste arising from the development of its activities, promoting circular economy and recycling, and the reuse of materials whenever it is feasible.
In 2016, the waste generated has increased by 20.8%, attributable to the increase in activity and turnover of EULEN Group. 96% of the waste generated by the Group is non-hazardous waste, with pruning and mowing waste being the most significant kind. In order to mitigate the impact of the generation of this type of waste, the reuse of pruning remains will be promoted through chipping, as it has been implemented for several customers during 2016.
Variation Type of waste* 2014 2015 2016 2015/2016 (%)
Hazardous waste (Tm) 56 31 41 +32.2%
Non-hazardous waste (Tm) 586 787 947 +20.3%
TOTAL 642 818 988 +20.8%
* The total amount of waste managed has been recalculated for 2014 and 2015 due to increased availability of waste collection records.
During 2016, 45.2% of the waste produced with R code has been sent to recovery, regeneration, reuse or recycling.
Promotion of circular economy EULEN Group aims to generate smart, sustainable and integrated growth by supporting the change towards an economy that is efficient in the use of resources. This way, it takes part in the “Europe 2020” strategy promoted by the European Commission, which has resource efficiency as a main pillar of the European economic strategy. In this regard, in 2016 EULEN Group undertook several initiatives for the sustainable use of its customers’ resources: • Reuse of the pruning remains through chipping in the conservation service of green areas, in the municipalities of Salamanca, Logroño and Aranda de Duero, as well as in the Port Authority of Las Palmas and in the SOLVAY plant, in Cantabria: The service has replaced the shipment of pruning remains to the landfill through reuse, based on the application of the chippings in shrub beds. It is a natural weed control substance, which also contributes to the loss of soil heat, favoring plant growth. On the other hand, EULEN Medio Ambiente is incorporating, in the majority of its services, bio-choppers that use the pruning remains as compost for fertilizer. • Adaptation of irrigation systems to improve the efficiency of water use in the conservation service of green areas, in the municipalities of Salamanca, Logroño, Palma de
106 Mallorca and Valladolid: The service involved the replacement of traditional irrigation elements with sprinklers and diffusers, incorporating nozzles that prevent fogging and therefore, provide a better use of water. In turn, by incorporating anti-drainage valves, the loss of water by pressure drops in the network is limited. Humidity and rain sensors have also been incorporated, linked to new remote irrigation management applications. • Reused water in the conservation service of green areas, in the municipalities of Valladolid, Logroño and Palma de Mallorca: Incorporation of the new networks of recycled water in the irrigation systems of the green areas. To do so, small adaptations of the irrigation elements are established, such as addition of filters and adjustment of irrigation emitters. All this has been reflected in the incorporation of purple to sprinklers and manholes, to identify these spaces where water is used. • Application of the mulching gardening technique in the Service of conservation of green areas, in the municipalities of Salamanca, Logroño, Aranda de Duero and in the SOLVAY plant, in Cantabria: This is a gardening method based on the mowing and shredding of grass remains, which are spread over grassy areas acting as fertilizer and as a supply of organic matter, minimizing the use of chemical compost. The new lawn-mowing teams of EULEN Medio Ambiente are incorporating this technology.
Reduction of emissions EULEN Group measures its CO2 emissions associated with the company’s activities using a methodology based on the GHG Protocol and the ISO 14064 Standard, which allow the calculation of direct and indirect emissions distributed in Scope 1, 2 and 3. The company’s emissions inventory takes into account emissions from fuel consumption in the heating of buildings, vehicles and their own machinery, emissions from electricity consumption, emissions from fluorinated gases from refrigeration equipment, emissions from paper consumption and emissions generated by trips made by company employees. In this sense, the following initiatives related to the Carbon Footprint of EULEN Group should be mentioned: • Emissions inventory at the EULEN Headquarters (Madrid) and creation of the
EULEN Forest (Bosque EULEN) as a compensatory measure to capture the CO2 emissions reported by the Group.
• Implementation of the CO2 Plan for the Reduction of Emissions from the vehicle fleet of the Environmental Department. This plan is registered in the Ministry of Environment for the 2016-2020 time frame, linked to the reduction of EULEN’s carbon footprint registered in the Spanish Office of Climate Change. At the same time, in its strategy to contribute to the improvement of the environmental performance of its customers, EULEN Group developed the following inventory, calculation and offsetting of its customers’ CO2 emissions or “Carbon Footprint”: • Calculation of the carbon footprint and offsetting of the “42 Annual Meeting of the Spanish Nuclear Society” held in the city of Santander in October 2016, through the inventory of emissions generated during the 3 days of the congress. The meeting was concluded with the planting of 400 trees to offset the emissions generated.
2016 Corporate Social Responsibility Report// EULEN Group 107 • Carrying out a technical session with customers and potential customers to present the new business line of Integral Management of Carbon Footprint. This session was held in Hayedo de Montejo in November of 2016. Inventory of the carbon footprint generated by the gardening service of the City of Salamanca. • In 2016, as a result of the various projects and initiatives listed throughout this
chapter, the group has managed to reduced its total CO2 emissions by 1.5%. The decline in indirect emissions (consumption of electricity, paper consumption and business travel), as well as the lower consumption of fluorinated gases from refrigeration equipment and consumption of diesel in facilities, explain this decline compared to 2015.
EULEN GROUP EMISSIONS Variation 2014 2015 2016 2015-16 (%) (Tm CO2 eq)*
Facility boilers 195 176 203 +15.3%
Company vehicles and machinery 11,240 10,664 10,995 3.1%
Fluorinated gases ND 81 3 -96.3%
Scope 1 (Direct emissions) 11,435 10,921 11,201 +2.6%
Electricity 1,498 1,453 1,084 -25.4%
Scope 2 (Indirect emissions) 1,498 1,453 1,084 -25.4%
SCOPE 12,933 12,375 12,285 -0.7%
Paper consumption 58 52 51 -1.9%
Travel 959 906 797 -12.1%
Scope 3 (other indirect emissions) 1,017 958 848 -11.5%
TOTAL 13,950 13,333 13,132 -1.5%
* Direct + indirect.
UA: Unavailable.
108 Santiago Ezquerra -SPAIN- 2016 Corporate Social Responsibility Report// EULEN Group 109 Our contribution to Ü Labor integration and training of people at risk of social exclusion the community Ü Support of social and sustainable projects
110 EULEN Group is a company that is aware of the needs of society and is committed to initiatives to positively influence the development of the environment and the communities in which it operates.
The Company believes that enterprises have a special obligation to contribute to the achievement of the Sustainable Development Goals (SDGs), adopted by the United Nations member countries in 2015, because of their ability to generate employment and contribute to progress. These goals were signed with the aim of eradicating poverty, protecting the planet and ensuring stability and prosperity for all as part of a new 2030 sustainable development agenda.
The Company, given its activity and values, is aware of its role as an employer, and diligently assumes responsibility for compliance with the SDGs specified in the table on the following page, in the development of different lines of action and social commitment.
The SDGs are quite interconnected, so the performance in one of them necessarily has consequences in the others. Therefore, it can be said that companies in general and EULEN in particular, can carry out actions that promote a large number of them.
However, some companies will have it easier than others when it comes to acting in SDGs. This will depend on their corporate purpose, geographic location, business philosophy or Social Responsibility priorities.
2016 Corporate Social Responsibility Report// EULEN Group 111 At EULEN, we believe that our main strengths are related to people, their training and their inclusion in the labor market, guaranteeing the absence of inequalities of any kind and the respect of their rights. This is why we make a special effort to contribute to the following SDGs and their specific milestones:
OBJECTIVE MILESTONE
• By 2030, significantly increase the number of young people and adults who have the necessary skills, in particular technical and professional, to access employment, decent work and entrepreneurship. • By 2030, eliminate gender inequalities in education and to ensure equal Ensure inclusive, equitable and quality access to all levels of education and vocational training for the vulnerable, education and promote lifelong including people with disabilities, indigenous people and children in learning opportunities for all situations of vulnerability. • By 2030, ensure that all young people and a considerable proportion of adults, both men and women, are literate and have basic notions of arithmetic.
• Ensure the full and effective participation of women and equal opportunities Achieve gender equality and for leadership at all levels of decision-making positions in political, economic empowering all women and girls and public life.
• Maintain per capita economic growth in accordance with national circumstances and, in particular, gross national product growth of at least 7% per annum in least developed countries. • Achieve higher levels of economic productivity through diversification, technological modernization and innovation, among other things by focusing on high added value and labor-intensive sectors. • By 2030, achieve full and productive employment and decent work for all Promote sustained, inclusive and women and men, including young people and people with disabilities, as well sustainable economic growth, full and as equal pay for work of equal value. productive employment and decent Adopt immediate and effective measures to eradicate forced labor, put an work for all • end to contemporary forms of slavery and human trafficking, and ensure the prohibition and elimination of the worst forms of child labor, including the recruitment and use of child soldiers. And by 2025, put an end to child labor in all its forms. • Protect labor rights and promote a safe and risk-free working environment for all employees, including migrant workers, in particular migrant women, and people in precarious employment.
• By 2030, promote and foster the social, economic and political inclusion of all people, regardless of age, sex, disability, race, ethnicity, origin, religion or Reduce inequality in and between economic status or other conditions. countries • Ensure equal opportunities and reduce inequality of outcomes, including the elimination of discriminatory laws, policies and practices, and by promoting appropriate legislation, policies and measures in this regard.
• Improve the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and exchange knowledge, Strengthen the implementation expertise, technology and financial resources to support the achievement of means and regenerate the Global the Sustainable Development Goals in all countries, particularly in developing Partnership for Sustainable ones. Development • Promote and foster the establishment of effective partnerships in the public, public-private and civil society spheres, taking advantage of the expertise and resource mobilization strategies of partnerships. The contribution of EULEN Group to the community revolves around two different lines of action, on which the milestones and future challenges are reported, as shown below:
Lines of action 2016 Milestones 2017 Challenges • Start of the collaboration with Fundación • To increase the integration of more than Trabajando en Positivo, for the labor 40 people of Fundación Trabajando en integration of those affected by HIV-AIDS in Positivo into the staff of the Group. Labor integration Spain. • Increase the number of employees hired and training of • Collaboration with Fundación Integra, which from Fundación Integra. people at risk of materialized with the incorporation of 138 • Increase the total number of EULEN Group social exclusion employees. volunteers. • Participation of 30 Group volunteers in the training and support of disadvantaged groups.
• Funding of events with social educators by • Extend the funding of initiatives to EULEN Peru, for the promotion of reading promote culture to other countries. among families in Lima. • Study the sponsorship of new leisure and • EULEN extended the sponsorship of the cultural activities. Rowing Club San Nicolás de Portugalete • Carry out the third collaboration with (Vizcaya), Spain, and the cycling club JIRA- Make-A-Wish. BIRA. • Extend the campaign “Tapones para una • Second collaboration in the Christmas nueva vida” (Bottle caps for a new life) to campaign, Make a Wish “Estrellas de la all offices of EULEN Group and Flexiplán. Support of social Ilusión”. and sustainable • Promote charity sporting events. • Signing of the Agreement with Fundación projects Extend the agreement with AUARA to all SEUR to implement the project “Tapones • offices of EULEN Group in Spain, and to para una nueva vida”. its customers, with the aim of sharing to • First EULEN charity race, on a corporate the largest extent possible the differential level, in collaboration with the Spanish value associated with the consumption Federation of Food Banks. of drinking water under social and • Signing of the Agreement with AUARA, a sustainable principles. social enterprise whose dividends are used entirely in projects related to drinking water.
2016 Corporate Social Responsibility Report// EULEN Group 113 LABOR INTEGRATION AND TRAINING OF PEOPLE AT RISK OF SOCIAL EXCLUSION
EULEN Group maintains a firm commitment towards the most disadvantaged groups (people with disabilities, immigrants, people at risk of social exclusion and young people). In this sense, the Group has been working with Fundación INTEGRA for 12 years. This Foundation has been working since 2001 towards the reinsertion and the integral development of the groups at risk with which it works. In 2016, 138 employees from this Foundation were incorporated into the company. In 2016, EULEN Group has started a collaboration with Fundación Trabajando en Positivo, following the signing of the Collaboration Agreement in 2015. This Foundation works specifically and jointly with various entities whose main aim is to eliminate existing discrimination in the workplace towards people with HIV. Since the signing of the agreement, 105 employees have been incorporated through this Foundation. EULEN Group in Spain maintained several recurring projects in 2016, such as the collaboration with the Red Cross in the EntornoSur project for the fight against discrimination, or the agreements on the labor insertion of women who are victims of gender violence with Caritas, the Red Cross and Secretariado Gitano. On the other hand, EULEN Group promotes corporate volunteering as a lever for social involvement and reinforcement of employees’ sense of belonging. Throughout 2016, 16 employees of the Group participated in different volunteering activities in Spain. The involvement of the employees has been carried out through 49 workshops given by Fundación Integra. In these workshops, people from different vulnerable groups are aided to develop and improve their CVs or face job interviews, giving candidates the tools to increase the chances of success in the search for employment. EULEN Chile renewed its distinction Sello Inclusivo granted by the National Disability Service until 2018.
Belen Piñeiro con la usuaria Paloma Sánchez -SPAIN- 114 In addition, in 2016 the company provided training for the awareness of suppliers, with the aim of incorporating diversity and inclusion into everyday work practices. Internally, the Group continued with the training program for workers in situations of disability and expanded the inclusion plan in region IV of Coquimbo. As for EULEN Colombia, it extended the partnership with the Institute for Social Economy (IPES), which began in 2014. Its purpose is to support decent work of employees by formalizing their jobs. In 2016, EULEN America (USA) started its collaboration with the charities Chapman Partnership and Feeding South Florida. Through different programs, these institutions seek to provide suitable food, health, education and employment to homeless and people with fewer resources. With the aim of favoring vulnerable communities, EULEN Mexico implemented a program in 2016 to encourage hiring in modest communities and villages surrounding the Braskem Idesa company, to which it offers its services. In the selection processes, the recruitment of people living in these communities is actively promoted, establishing a minimum of 23% of the workforce. Located in one of the poorest and most remote municipalities of the state of Veracruz, a transportation system was implemented for the benefit of 100% of the workforce and, in turn, for the promotion of well-being in the employee’s quality of life. Another project in favor of the inclusion of people with disabilities in EULEN Mexico is the Programme for Assistants at the Benito Juárez International Airport, in Mexico City. The Assistants, who are part of the security and surveillance service, provide guidance to users and passengers related to flights, airlines and commercial services. This program was implemented in 2008, it continues to be highly successful and has an impact in favor of equality and inclusion.
Manpower is the main raw material of EULEN Group. The Group develops multiple programs in all countries, especially in Latin America, promoting employment contracts that improve the conditions established in the regulations and applicable legislation. This way, the employee has all the benefits guaranteed by the social structure of each country.
EULEN Group develops different EULEN Group’s workforce is mainly EULEN Group focuses its efforts training programs for those with composed of women. However, the on the reduction of inequality, fewer resources. These programs Group’s equality policies focus on generating employment in groups at aim to promote employability, self- the middle and higher categories, so risk of exclusion, allowing them to esteem and satisfaction, preferably that this equality is reflected in all provide a decent way of life through in Latin American countries where levels of the company. work. EULEN Group his present.
2016 Corporate Social Responsibility Report// EULEN Group 115 SUPPORT OF SOCIAL AND SUSTAINABLE PROJECTS
Initiatives focused on improving health and food safety EULEN Group collaborates with non-profit associations and foundations by supporting social projects that aim to improve the conditions of the communities where the Company carries out its activities. In 2016, the Group collaborated for the second time in the Christmas campaign Make a Wish “Estrellas de la Ilusión”, with the participation of the structural staff from 11 countries. As a company, EULEN Group contributed with the same amount of money donated by its employees, so that they were able to pay for 10 wishes of children. In Mexico, for example, the fundraising went to the wish of a girl with cerebral palsy, who was able to fulfill her greatest wish at 8 years old: to visit the beach and swim with the fish. Another important milestone in 2016 was the signing of the agreement with Fundación SEUR, in the implementation of the project “Tapones para una nueva vida”. This project consists of the collection and recycling of plastic caps. The money raised through their sale is intended to finance the medical material of children with serious health problems. As part of its contribution to the community, EULEN Panama took advantage of the renovation of the chairs in the training room of a customer to donate them to a state school called “El Japón”. It is a school with very few resources where EULEN Group contributes socially, at zero cost to the company. On the other hand, also in 2016 the agreement was signed with AUARA, a socially responsible company certified by Social Enterprise Mark that dedicates 100% of its profits to the provision of drinking water for people who do not have it. With the margins obtained from the sale of water bottles, AUARA finances water supply projects in countries such as Haiti, Cambodia, Malawi or Sierra Leone. Another outstanding initiative was the creation of the first EULEN charity race, with the slogan “kilometers for food”, which has subsequently developed as a success story. In Mexico, EULEN participated in World Food Day through the development of a campaign aimed at its employees. Its aim was to raise awareness and strengthen solidarity in the fight against hunger, malnutrition and poverty. As a result of this campaign, a total of 945 kilos of food were collected nationwide. EULEN Colombia also joined the challenge of fighting hunger by collecting 155 kilos of food. Furthermore, EULEN America (USA) was a member of the “Womenade” executive committee of the Chapman Partnership organization. This committee, composed of women from all walks of life, comes together to raise funds from events and recruitment to help residents, mostly disadvantaged women and children. Other international foundations and NGOs that EULEN Group participates with are Fundación Gisell Eusebio in the Dominican Republic, the Fundación Calicanto in Panama, the Institute for Social Economy IPES in Colombia, and the Ministry of Women and Vulnerable Populations in Peru.
116 EULEN Group participates in partnerships with other agents with whom it interacts in order to achieve synergies between the different stakeholders it interacts with in its activity. The objective of these partnerships is to adopt measures to guarantee the fulfillment of the Sustainable Development Goals.
Many of the social projects EULEN Group wishes to raise EULEN Group seeks not only to supported by EULEN Group seek awareness among its employees ensure a healthy life and well-being to indirectly reduce poverty in the fight against hunger and among its employees, but also through the creation of jobs and malnutrition of people in need, shows its support for projects that opportunities for all people, with through initiatives with organizations promote access to clean water and special attention to groups of high that want to combat the lack of sanitation, i.e. initiatives to improve vulnerability and at risk of exclusion. food and water in disadvantaged hygiene and health conditions of communities. people.
CASE STUDY
In 2016, EULEN Group developed the charity project called “Kilometers for food”, clearly joining the challenge of fighting hunger (SDG 2). The challenge was to collect one kilo of food per kilometer travelled by EULEN Group employees, and 100 kg of food per delegation. With this purpose, a group of members of the EULEN runners club prepared to complete this same goal of food collection by kilometers. The group ran the equivalent of five half marathons in five days, coinciding with the last five stages of the Camino de Santiago, reaching over 100 km. Finally, 7,893 kilos were collected among the 1,836 indirect employees (belonging to the organizational structure), representing an average of 4.3 kilograms per employee. The corporate project was implemented in all the countries where EULEN is present, establishing collection points where food can be delivered at each delegation. This food was donated to the Spanish Federation of Food Banks, Food Bank of Colombia and other similar institutions.
7,894 KG O OOD COLLECTED BETWEEN ALL COUNTRIES
2016 Corporate Social Responsibility Report// EULEN Group 117 Promotion of culture, education and local sports EULEN Group firmly believes that culture defines the identity traits of society and that its promotion allows progress in the strengthening of its values. Therefore, it allocates economic resources and shows its commitment through the establishment of sports and cultural partnerships. EULEN Group has agreements with universities and other study centers that offer students different tools to improve their incorporation into the employment world. Some examples of these collaborations are Universidad Pablo de Olavide (Seville), the European School of Management and Business (EUDE) or Universidad CEU Cardenal Herrera University (Valencia). In turn, the Group collaborates with Fundación Comillas to fund scholarships for students in the final years of their degree. Within this agreement, the Group allocated €9,450 in 2016. On the other hand, the Group actively participates in the plan for entrepreneurs, Plan de Emprendedores Educa 2020, whose objective is to disseminate and support the entrepreneurial culture throughout Spain. As for EULEN Peru, it funds and organizes events in parks and towns of Lima, where families participate, with the help of educators and social workers in order to promote reading. Approximately half of the attendees are children of EULEN employees, thus promoting the feeling of pride in belonging. Also in Peru, within the program “EULEN Apuesta por Ti”, employees and their families can access completely free education to finish their primary or secondary studies, in the case of employees who did not have the chance to access education in the past. These classes are given after working hours, so that the employee can continue their studies without compromising their work performance. In the promotion of minority sports, EULEN Group extended the sponsorship of the Rowing Club San Nicolás de Portugalete (Vizcaya), Spain, and signed a three-year agreement at the end of 2016 with the cycling club Jira-Bira. This agreement is a result of social commitment developed by both parties and the values provided by cycling, and which are subscribed by EULEN: sacrifice, improvement, commitment and team work.
Juan Ortiz -PERU-
118 María del Carmen Mulet y Vicente Estruch -SPAIN-
Ü Awards and Distinctions Ü External certifications and accreditations ANNEXES Ü GRI G4 Content Index Ü Independent and external verification report
2016 Corporate Social Responsibility Report// EULEN Group 119 AWARDS AND DISTINCTIONS
EULEN Group’s good work and performance in several fields, has earned it several awards and recognitions in 2016, throughout the geographies where EULEN carries out its activity. Some examples are: Renewal of the Sello inclusivo distinctive until 2018 in EULEN Chile, for their work in favor of integration of people with disabilities. The award was granted by the National Disability Service, dependent on the Ministry of Social Development of the Chilean Government. The team of EULEN America at the International Airport of Ft. Lauderdale, has received for the second year in a row the award Premio Triple Corona granted by Delta Airlines. Triple Corona is the highest achievement in Delta’s operational safety. It recognizes local operations and suppliers that show critical elements regarding team work, time management and operational excellence in the performance of a safe and timely activities. “Kms x Alimentos” (Kilometers for Food Campaign). Commitment to the most vulnerable social sectors. EULEN Group Mexico carried out a great support task by creating the “Kms x Alimentos” campaign, contributing to the fight against hunger. A total of 404 kg where collected. World Food Day (16 de October). Its aim was to strengthen solidarity in the fight against hunger, malnutrition and poverty. There was an excellent response from our employees at EULEN Mexico, who contributed 945 kg of food collected nationwide, with the help of Banco de Alimentos Cáritas, Alimentos Para Todos I.A.P and its several institutions, focused on the care of child nutrition. We were granted recognition for our participation.
EULEN INAPAM Partnership. Aligned with our organizational philosophy and constantly encouraging the inclusion of populations more prone to employment discrimination, EULEN Flexiplán in Mexico was once again recognized by the National Institute of Older Adults as a company promoting the integral development of older adults in the work environment.
120 Destruction and Recycling Certificate. As part of the green initiatives in Mexico, destruction and recycling containers were installed in the headquarters. Due to the excellent participation in this campaign, On Site (supplier of containers) granted us a recycling certificate, which recognizes EULEN Group for the saving of 506 kg of paper, which represent saving 9 trees, and generating an ecological impact of 13,409 liters of unpolluted water and 810 liters of oil saved.
Recognition from the Private Security National Committee (CNSP). EULEN Seguridad Privada in Mexico was recognized as Executive Manager in the 2016 period by the Private Security National Committee (CNSP), obtaining a distinguishing mark that adds value for our customers.
Make a Wish Mexico. Fund raising for Milagros Camarena, a girl with cerebral palsy who at the age of 8 suffered an accident that left her with third-degree burns, endangering her life. Milagros fulfilled her dream of visiting the beach and swimming with the fish.
A total of 110 applications were collected nationwide, collecting a grand total of $30,000.00 pesos (Thirty thousand pesos 00/100 m.n). We successfully managed to raise funds to fully cover Milagros’ dream!
Ministry of Labor and Social Security. In Mexico, together with the competent authorities, Flexiplán participated in an initiative to legalize cleaning work, in addition to building a relationship with the Ministry of Labor and Social Security as a company committed to the common well- being, meeting EULEN’s philosophy.
Recognition awarded to EULEN Panama by the Panamanian Association of Facility Management (APAFAM) one of its founding members.
2016 Corporate Social Responsibility Report// EULEN Group 121 EXTERNAL CERTIFICATIONS AND ACCREDITATIONS
ISO 9001:2015 (Spain, Portugal, Mexico, Dominican Republic, Colombia, Peru and Chile) The EULEN Group, in its commitment to Quality, is certified according to UNE-EN ISO 9001 since 1997. ISO 14001:2015 (SPAIN, Portugal, Mexico, Dominican Republic, Colombia y Peru) The company, as part of its commitment to the environment and to sustainability, has implanted UNE-EN ISO 14001 in all its offices and services since 2000.
EFQM (SPAIN) The EULEN Servicios Sociosanitarios business line has been recognized for Excellence with the 500+ level, according to the EFQM (European Foundation for Quality Management).
ISO 27001:2013 (SPAIN) EULEN Group has implemented a corporate information risk management system under ISO / IEC 27001 with the certification having been awarded in May 2009.
AENOR RP-CSG-029 (SPAIN) The business line EULEN Seguridad has this certificate of conformity for the System of professional and deontological management of Private Security services, granted by AENOR in June 2012.
ISO 22301:2013 The business line EULEN Seguridad has this certificate of conformity for the System of Business Continuity Management.
OSHAS 18001:2007 (SPAIN) The OHS management system of the EULEN Group has been subjected to external audit under the OHSAS 18001:2007 standard, in order to verify that the procedures and practices that are carried out on ORP and which are reflected in the Group's policy system, adequately conform to the requirements of OHSAS and are appropriately implemented. OHSAS 18001:2007 certification has been obtained in the activities of Cleaning, Maintenance, Security, Environment and Auxiliary Services.
UNE 158101; 158201; 158301; 158401 (SPAIN) The business line EULEN Servicios Sociosanitarios holds these certificates for the activities of Management of Residential Centers, Management of Day and Night Centers, Management of Telecare Services and Management of Homecare Services, respectively.
122 UNE 179002:2012 (SPAIN) The business line EULEN Servicios Sociosanitarios holds this certificate for the activities of Medical Transport Management.
ISO 50001: 2011 (SPAIN) In the delegation of EULEN Group in Bilbao, energy efficiency certification for energy, lighting and air conditioning systems has been implemented since 2012.
UNE-EN- 1176:2009 (SPAIN) Since 2010, the company has been certified to carry out the installation, inspection and maintenance work of children's play areas and their elements within the Environmental activity.
EN-UNE 16082:2012 (SPAIN) The business line EULEN Seguridad holds this certificate for airport security activities provided by the company.
AGREED QUALITY The business line EULEN Servicios Auxiliares has this certificate, issued for the activities of unloading and receiving goods, supply and evacuation of lines, preparation of orders and shipping and loading.
GRI G4 (comprehensive) The company, from its commitment to economic, environmental and social performance, has the external verification of the Corporate Responsibility Report by KPMG, according to the requirements of the international GRI G4 framework in its comprehensive compliance option.
2016 Corporate Social Responsibility Report// EULEN Group 123 GRI G4 Content Index
124 125 GRI G4 CONTENT INDEX ! If yes, include the page reference for the External Assurance externally assured. Indicate if the Standard Disclosure has been External Assurance Statement in the report. . There are also macros Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable In exceptional cases, if it is not possible to Explanation for Omission(s) has been omitted. explain the reasons why the information disclose certain required information, the reason for omission. Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Reason(s) for Omission(s) In exceptional cases, if it is not possible to disclose certain required information, provide Guidelines – Repor In excep Disclosures', where the requirements are listed from “a” to “z” under the column “Disclosure Requirements”. In order to report 'in accordance', an organiza Custom Content Index - 'in accordance' Comprehensive GENERAL STANDARD DISCLOSURES General Standard Disclosures STRATEGY AND ANALYSIS G4-1 G4-2 ORGANIZATIONAL PROFILE G4-3 G4-4 G4-5 G4-6 G4-7 G4-8 G4-9 G4-10 G4-11 G4-12 G4-13 G4-14 G4-15 G4-16 IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17 G4-18 G4-19 G4-20 G4-21 G4-22 G4-23 STAKEHOLDER ENGAGEMENT G4-24 G4-25 G4-26 G4-27 125 2016 Corporate Social Responsibility Report// EULEN Group 125 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable . 14.19 jurisdiction. Annual Accounts, which include the information on remuneration. annual compensation of the highest-paid person in the organisation paid person) is -7. third parties, whether shareholders, suppliers, employees, etc...may on the Code of Ethics. be taken by those affected to the relevant bodies within the The Management Committee has also been provided with training the company compared to the average annual compensation of the 2016 Tax Year 2016 Annual Back cover pp. 11, 123 pp. 123, 131 pp.43-44 p. 43 pp.43-44 p.18 pp.43-44 pp.43-44 pp.43-44 The articles of association contain the precautionary measure o f pp.43-44 There is a Corporate Management Committee that approves the pp. 43-44 p. 44 p. 44 p. 44 p. 44 pp. 18, 43-44 pp. 37-38, 43-44 Consolidated Annual Accounts 2016 p. 68 Consolidated Annual Accounts 2016 p. 68 The Annual Shareholders' Meeting approves the Consolidated The relationship between the highest total annual compensation in The relationship between the percentage increase in the total compared to the percentage increase of the total average annual staff as a whole (not including the highest-paid person) is submitting conflicts between the company and its partners to compensation for the staff as a whole (not including the highest- report and discusses social, economic and environmental issues. arbitration, without prejudicing the fact that the company's agreements that may be detrimental to the rights and interests of REPORT PROFILE G4-28 G4-29 G4-30 G4-31 G4-32 G4-33 GOVERNANCE G4-34 G4-35 G4-36 G4-37 G4-38 G4-39 G4-40 G4-41 G4-42 G4-43 G4-44 G4-45 G4-46 G4-47 G4-48 G4-49 G4-50 G4-51 G4-52 G4-53 G4-54 G4-55 126 2016 Corporate Social Responsibility Report// EULEN Group 126 ! ! ! ! ! If yes, include the page reference for the External Assurance externally assured. External Assurance Statement in the report. Indicate if the Standard Disclosure has been that may be recycled. In exceptional cases, if it is not possible to Not applicable Explanation for Omission(s) Grupo EULEN's activity does not has been omitted. include significant use of material explain the reasons why the information disclose certain required information, the reason for omission. Not applicable Reason(s) for Omission(s) The Standard Disclosure or part of the In exceptional cases, if it is not possible to Standard Disclosure is not applicable disclose certain required information, provide CATEGORY: ECONOMIC CATEGORY: ENVIRONMENTAL In exceptional cases, if it is not Not applicable Identified Omission(s) information, identify the information that has been omitted. possible to disclose certain required 8% above the Minimum Inter-professional Wage. may already be included in other reports prepared by the organization. In these The minimum wage for a Grupo EULEN employee in Spain in 2016 is pp. 40-41 pp. 40-42 pp. 40-42 Page Number (or Link) p. 48 Consolidated Annual Accounts 2016 pp. 6-8 pp. 51, 107 Consolidated Annual Accounts 2016 p. 27 Consolidated Annual Accounts 2016 p. 27 p. 48 Grupo EULEN does not differentiate between genders with regard In Spain, all Senior Management members are Spanish. p. 48 p. 91 pp. 100, 101 p. 103 pp. 100, 101, 104 p. 105 p. 105 Energy intensity stood at 0.107 GJ/thousands of euros in 2016. p. 105 pp. 104-105 pp. 100, 101 p. 103 p. 103 relevant information can be found. to the entry salary. circumstances, the organization may elect to add a specific reference to where the Information related to Standard Disclosures required by the ‘in accordance’ options ETHICS AND INTEGRITY G4-56 G4-57 G4-58 SPECIFIC STANDARD DISCLOSURES DMA and MATERIAL ASPECT: ECONOMIC PERFORMANCE G4-DMA G4-EC1 G4-EC2 G4-EC3 G4-EC4 MATERIAL ASPECT: MARKET PRESENCE G4-DMA G4-EC5 G4-EC6 MATERIAL ASPECT: PROCUREMENT PRACTICES G4-DMA G4-EC9 MATERIAL ASPECT: MATERIALS G4-DMA G4-EN1 G4-EN2 MATERIAL ASPECT: ENERGY G4-DMA G4-EN3 G4-EN4 G4-EN5 G4-EN6 G4-EN7 MATERIAL ASPECT: WATER G4-DMA G4-EN8 G4-EN9 Indicators 126 127 2016 Corporate Social Responsibility Report// EULEN Group 127 ! ! ! ! ! ! for watering purposes), the client or reusing. consumption comes from its supplies are used. With regards to the use of recycled water (mainly provides the resource. Most of the company's This information will be reported The company's activity does not generate a significant amount of offices, where municipal water packaging materials for recycling from 2020. unavailable The Standard Disclosure or part of the The information is currently The Standard Disclosure or part of the Standard Disclosure is not applicable Standard Disclosure is not applicable EULEN's activity. place in 2016. All Grupo EULEN offices stand on urban land and therefore all waste All Grupo EULEN offices CO2/thousands of euros in 2016. The total amount of emissions pp. 100, 101, 107 p. 108 p. 108 p. 108 The intensity of greenhouse gas emissions stands at 0.0087 Tn o f p. 108 NOx: 44.7 Tn pp. 100, 101, 106 p. 103 p. 106 There were no significant spills in 2016 deriving from Grupo Grupo EULEN does not have information regarding the destination No significant discharges deriving from the company's activity took pp. 100, 101 pp. 106-107 pp. 100, 101 No significant environmental fines or cases deriving from pp. 100, 101 pp. 104, 106-107 (scope 1, 2 and 3) were used for this calculation. environmental regulations have been received in 2016. SO2: 0.06 Tn of the waste generated. water (equivalent to urban water) are emptied into the municipal sanitation network. G4-EN10 MATERIAL ASPECT: EMISSIONS G4-DMA G4-EN15 G4-EN16 G4-EN17 G4-EN18 G4-EN19 G4-EN20 G4-EN21 MATERIAL ASPECT: EFFLUENTS AND WASTE G4-DMA G4-EN22 G4-EN23 G4-EN24 G4-EN25 G4-EN26 MATERIAL ASPECT: PRODUCTS AND SERVICES G4-DMA G4-EN27 G4-EN28 MATERIAL ASPECT: COMPLIANCE G4-DMA G4-EN29 MATERIAL ASPECT: TRANSPORT G4-DMA G4-EN30 MATERIAL ASPECT: OVERALL 128 2016 Corporate Social Responsibility Report// EULEN Group 128 ! ! ! ! CATEGORY: SOCIAL SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK Grupo EULEN is 0.85 per 1000. parental leave in returning to work. pp. 100, 101 pp. 102-103 pp. 85, 91-92, 100-101 pp. 92- 94 The main environmental impact of the company's activity and its pp. 100, 101 No significant environmental fines or cases deriving from pp. 61-62 pp. 66-67 pp. 68-69 Grupo EULEN supports the employees who take their corresponding pp. 68-69 pp. 69 pp. 78-79 pp. 80-81 pp. 81-82 The incident rate for diseases related to occupation at Grupo E ULEN pp. 80-81 p. 74 pp. 76-77 pp. 75-76 pp. 78-79 pp. 61-62, 70 pp. 28, 71 pp. 61-62, 70 There is no record that in 2016 any claims were made regarding any kind of social impact. supply chain are the emissions from vehicle use and the use of chemical cleaning products. environmental regulations have been received in 2016. is very low. The incident rate for diseases related to occupati on at G4-DMA G4-EN31 MATERIAL ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT G4-DMA G4-EN32 G4-EN33 MATERIAL ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS G4-DMA G4-EN34 MATERIAL ASPECT: EMPLOYMENT G4-DMA G4-LA1 G4-LA2 G4-LA3 MATERIAL ASPECT: LABOR/MANAGEMENT RELATIONS G4-DMA G4-LA4 MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-DMA G4-LA5 G4-LA6 G4-LA7 G4-LA8 MATERIAL ASPECT: TRAINING AND EDUCATION G4-DMA G4-LA9 G4-LA10 G4-LA11 MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY G4-DMA G4-LA12 MATERIAL ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN G4-DMA G4-LA13 MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES 2016 Corporate Social Responsibility Report// EULEN Group 129 unavailable unavailable The information is currently The information is currently SUB-CATEGORY: SOCIETY SUB-CATEGORY: HUMAN RIGHTS Ethics in 2016 p.75 in 2016 for unfair competition, monopolistic practices or a threat to free competition. pp. 85, 91-92 100% There is no record that in 2016 any claims were made regarding p. 69 There is no record that in 2016 any claims were made regarding pp. 40, 68 All Security division employees have received training on the Code of pp. 68, 91 New approved suppliers must sign and accept the requirements as pp. 112-113 pp. 114, 116-118 No operations have been carried out by the company in 2016 that pp. 40, 91 pp. 93-95 pp. 40-41 There are no confirmed cases of corruption in 2016, although one p. 40 There is no record of any lawsuits being filed against Grupo EULEN p. 40 There is no record of any fines or non-monetary sanctions being pp. 85, 91-92 76% of the suppliers with which the company works have been set of proceedings has been opened and is pending resolution. screened. The screening included social criteria. charged to Grupo EULEN in 2016 due to a failure to comply with social impacts. social impacts. defined in EULEN's Regulatory System. laws and regulations. have had a negative impact on local communities. G4-DMA G4-LA14 G4-LA15 MATERIAL ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS G4-DMA G4-LA16 MATERIAL ASPECT: SECURITY PRACTICES G4-DMA G4-HR7 MATERIAL ASPECT: ASSESSMENT G4-DMA G4-HR9 MATERIAL ASPECT: LOCAL COMMUNITIES G4-DMA G4-SO1 G4-SO2 MATERIAL ASPECT: ANTI-CORRUPTION G4-DMA G4-SO3 G4-SO4 G4-SO5 MATERIAL ASPECT: ANTI-COMPETITIVE BEHAVIOR G4-DMA G4-SO7 MATERIAL ASPECT: COMPLIANCE G4-DMA G4-SO8 MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY G4-DMA G4-SO9 130 ! ! This information will be reported from 2018. unavailable The information is currently SUB-CATEGORY: PRODUCT RESPONSIBILITY identified in our claim registration systems in 2016. There is no record that in 2016 any claims were made regarding pp. 40, 95 There is no record that in 2016 any claims were made regarding pp. 85-87 No significant sanctions or reprimands have been received in 2016 pp. 85-87, 91 p. 94 p. 94 p. 88 pp. 85-87, 95 The company does not sell products or services that are banned in p. 96 pp. 85-87 p. 91 pp. 85-87 No fines or other significant sanctions deriving from a failure to regarding a failure to comply with legal regulations or volunt ary social impacts. social impacts. codes relating to impacts on health and safety. comply in the provision and use of products and services have b een other markets, or are subject to stakeholder debate. G4-SO10 MATERIAL ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY G4-DMA G4-SO11 MATERIAL ASPECT: CUSTOMER HEALTH AND SAFETY G4-DMA G4-PR1 G4-PR2 MATERIAL ASPECT: PRODUCT AND SERVICE LABELING G4-DMA G4-PR3 G4-PR4 G4-PR5 MATERIAL ASPECT: MARKETING COMMUNICATIONS G4-DMA G4-PR6 G4-PR7 MATERIAL ASPECT: CUSTOMER PRIVACY G4-DMA G4-PR8 MATERIAL ASPECT: COMPLIANCE G4-DMA G4-PR9 2016 Corporate Social Responsibility Report// EULEN Group 131 KPMG Asesores, S.L. Pº. de la Castellana, 259 C 28046 Madrid Independent Assurance Report to the Management of Grupo EULEN (Free translation from the original in Spanish. In case of discrepancy, the Spanish language version prevails.) In accordance with our engagement letter, we performed a limited assurance review on the non- financial information contained in the Corporate Responsibility Report of Grupo EULEN for the year ended 31 December 2016 (hereinafter “the Report”). The information reviewed corresponds to the indicators referred in the GRI G4 Content Index with the symbol “”. Management responsibilities Grupo EULEN Management is responsible for the preparation and presentation of the Report in accordance with the Sustainability Reporting Guidelines version 4.0 (G4) of the Global Reporting Initiative, as detailed in section G4-32 of the GRI G4 Content Index of the Report. It is also responsible for compliance with the Materiality Disclosure Service, obtaining confirmation from the Global Reporting Initiative on the proper application of these. Management is also responsible for the information and assertions contained within the Report; for determining Grupo EULEN’s objectives in respect of the selection and presentation of sustainable development performance, including the identification of stakeholders and material issues; and for establishing and maintaining appropriate performance management and internal control systems from which the reported performance information is derived. These responsibilities include the establishment of appropriate controls that Management consider necessary to enable that the preparation of indicators with a limited assurance review would be free of material errors due to fraud or errors. Our responsibility Our responsibility is to carry out a limited assurance review, and to express a conclusion based on the work performed, referring exclusively to the information corresponding to 2016. We conducted our engagement in accordance with Standard ISAE 3000, “Assurance Engagements other than Audits or Reviews of Historical Financial Information”, the Standard ISAE 3410 “Assurance Engagements on Greenhouse Gas Statements”, issued by the International Auditing and Assurance Standards Board (IAASB) and with the Performance Guide on the revision of Corporate Responsibility Reports of the Instituto de Censores Jurados de Cuentas de España (ICJCE). These standards require that we plan and perform the engagement to obtain limited assurance about whether the report is free from material misstatement. KPMG applies International Standard on Quality Control 1 (ISQC1) and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the Internal Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. Limited assurance procedures carried out Our limited assurance engagement consisted of making enquiries of management and persons responsible for the preparation of information presented in the Report, and applying analytical and other evidence gathering procedures. These procedures included: KPMG Asesores S.L., a limited liability Spanish company and a member firm of the KPMG network of independent Reg. Mer Madrid, T. 14.972, F. 53, member firms affiliated with KPMG International Sec. 8 , H. M -249.480, Inscrip. 1.ª Cooperative (“KPMG International”), a Swiss entity. N.I.F. B-82498650 132 2 • Verification of Grupo EULEN´s processes for determining the material issues, and the participation of stakeholder groups therein. • Interviews with Management and relevant staff at group level and selected business unit level concerning sustainability strategy and policies and corporate responsibility for material issues, and the implementation of these across the business of Grupo EULEN. • Evaluation through interviews concerning the consistency of the description of the application of Grupo EULEN´s policies and strategy on sustainability, governance, ethics and integrity. • Risk analysis, including searching the media to identify material issues during the year covered by the Report. • Review of the consistency of information comparing GRI General Standard Disclosures with internal systems and documentation. • Analysis of the processes of compiling and internal control over quantitative data included in the Report, regarding the reliability of the information, by using analytical procedures and review testing based on sampling. • Review of the application of the Global Reporting Initiative's G4 Sustainability Reporting Guidelines requirements for the preparation of reports in accordance with comprehensive option • Reading the information presented in the Report to determine whether it is in line with our overall knowledge of, and experience with, the sustainability performance of Grupo EULEN. • Verification that the financial information reflected in the Report was audited by independent third parties. Our multidisciplinary team included specialists in social, environmental and economic business performance. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently the level of assurance obtained in a limited assurance engagement is lower than that of a reasonable assurance engagement. This report may not be taken as an auditor's report. Conclusions Our conclusion has been formed on the basis of, and is subject to, the matters outlined in this Independent Review Report. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusions. Based on the limited assurance procedures performed and the evidence obtained, as described above, nothing has come to our attention that causes us to believe that the Corporate Responsibility Report of Grupo EULEN for the year ended 31 December 2016 has not, in all material respects, been prepared and presented in accordance with the Sustainability Reporting Guidelines version 4.0 (G4) of the Global Reporting Initiative, as detailed in section G4-32 of the GRI G4 Content Index of the Report, including the reliability of data, adequacy of the information presented and the absence of significant deviations and omissions. Under separate cover, we will provide Grupo EULEN’s Management with an internal report outlining our complete findings and areas for improvement. Purpose of our report In accordance with the terms of our engagement, this Independent Assurance Report has been prepared for Grupo EULEN in relation to its Corporate Responsibility Report 2016 and for no other purpose or in any other context. KPMG Asesores, S.L. (Signed) José Luis Blasco Vázquez 22 September 2017 2016 Corporate Social Responsibility Report// EULEN Group 133