2017 Activity and Sustainable Development Report

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2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT For over 70 years, we have applied our exceptional expertise at Teréga to developing and operating natural gas transport and storage infrastructures, enabling us today to design new solutions to meet the energy challenges of France and Europe.

How can the historical model, largely based on centralised and fossil production, be linked to the model of the future, with its zero carbon footprint based on the use of a diversified and largely renewable energy mix from more decentralised sources?

TIGF becomes

We believe gas is an energy of the future because it can help to accelerate the transition to tomorrow’s energy model.

We are working to make the future of gas visible today by becoming a driver of the energy transition and a major contributor to tomorrow’s energy model.

Our new brand identity symbolises our transformation, which is currently being driven by the IMPACTS 2025 plan, and enhances what we do. Closer to current and potential customers, with a better understanding of their expectations, by capitalising on the strength of our close relationships.

More efficient and responsible, with efficient infrastructures and activities that are highly secure, combined with a positive social and environmental track record.

More influential and visible, with the ambition to have a greater influence on debates over the future of energy and the key role of gas and gas infrastructures.

More open and innovative, with the extension of the geographical playing field, the development of activities with high added value beyond our historical activities and the integration of our facilities in “multi-energy” networks.

More agile together, with a team structure that promotes fluidity, cross-functionality, collaboration and anticipation of change. INTERVIEW WITH DOMINIQUE MOCKLY

Dominique MOCKLY Chairman and Chief Executive Officer of Teréga “AS AN ENERGY ‘IN TRANSITION’, GAS LIES AT THE HEART OF TECHNOLOGICAL CHANGE, MAKING IT A SOLUTION FOR THE FUTURE.”

2017 WAS PARTICULARLY RICH IN TERMS In this context, Teréga is asserting its po- seen as incompatible. That is why Teréga OF ENERGY DEBATES AND FOR THE sition as a European player firmly com- wants to speed up the pace of change, COMPANY YOU LEAD. WHAT DO YOU TAKE mitted to the energy transition and the both in terms of driving R&D and in terms AWAY FROM IT? key role of gas in this dynamic. As well of project support, in areas such as bio-

The past year was marked by several as being an energy of the transition, gas methane, CO2 enhancement using Power key moments from an energy and envi- is also an energy “in transition” – in other to Gas technologies or Natural Gas ronmental point of view. Internationally, words, gas is the natural ally of techno- Vehicles (NGV). This notion of “green mo- Donald Trump’s decision to withdraw logical change, making it a from the Paris Climate Agreement was a solution for the future. This “WE HAVE PUT IN PLACE major event. For all that, the Americans’ ambition lies at the heart decision does not fundamentally reverse of our industrial strate- EVERYTHING WE NEED TO the trend: the major powers remain firmly gy. Such is the goal of the ACHIEVE OUR OBJECTIVES committed to the fight against global IMPACTS 2025 plan, but warming. They are becoming increasingly also of our emission re- IN TERMS OF CARBON reliant on the major energy companies to duction and offsetting pro- ACCOUNTING BY 2020.” achieve the objectives that have been set. gramme BE POSITIF (Bilan Having organised the COP 21 in 2015 and Environnemental POSITIF, the One Planet Summit at the end of 2017, or Positive Environmental Track Record), bility” is something we strongly believe in! France is now driving this trend. At a na- which was consolidated in 2017 thanks to A car that runs on natural gas produces tional level, there has been no shortage the remarkable efforts of our teams and 30% less greenhouse gas emissions than of issues relating to energy, with the de- Executive Committee. a petrol car, and without releasing par- ferment of the target to reduce the share ticles. That makes it an efficient techno- of nuclear energy in the production of WHAT CHANGES ARE YOU REFERRING TO logical solution, alongside the electric electricity to 50% by 2025 and the passing AND HOW DO YOU INTEND TO ACHIEVE engine solution, for gradually replacing of a law at the end of the year on hydro- YOUR TARGETS IN THE AREA OF CARBON petrol and diesel cars, the sale of which carbons that brings our storage activities ACCOUNTING? is envisaged to cease by 2040. under regulation. These major technological advances are quite simply those that combine a concern for the environment with being economically relevant – two objectives that have at times, and for too long, been

4 TABLE OF CONTENTS

The Teréga network. P.4

Strategy. P.6

Governance. P.8

We also believe we can achieve our tar- Becoming fully integrated in the Euro- gets in terms of carbon accounting by pean energy market also means conti- TERRAIN 2020. For one simple reason: we have nuing with the major infrastructure & TERRITORY put in place everything we need to suc- works we have launched. I’m thinking in Trading Region France: ceed. We fully offset the impact of our particular of the STEP (South Transit East a game-changer. P.12 infrastructure works on fauna and flora. Pyrenees) project, a new bond of ener- RGM: towards a more fluid and homogeneous network. P.14 Any gas that happens to leak out during gy solidarity between France and Spain. interventions is systematically reinjected Taking full advantage of its strategic po- STEP: a European project in energy solidarity. P.16 into the network. And since 1 October sition between flows from the North Sea An exceptional period of last year, the electricity we consume and the Mediterranean basin, Teréga for Teréga’s storage activities. P.18 across all our sites is 100% renewable! aims to establish this major gas inter- The Lussagnet storage site connection project as the sym- is looking to the future. P.20

bol of the construction of a true Networks interventions: “IN 2018, WE WILL Europe of energy. a daily commitment. P.22 NEED TO ACHIEVE OUR Turning safety into “PARI”, NETWORKS GOAL OF BECOMING a winning wager! In 2017, we & RELATIONSHIPS launched the Prévention des Teréga puts its customers FULLY INTEGRATED IN Accidents et des Risques Indus- at the heart of its strategy. P.26 THE NATIONAL AND triels (Prevention of Industrial Teréga bolsters its role and institutional image. P.30 Accidents and Risks, or PARI, EUROPEAN ENERGY meaning “wager”) programme Total commitment to the environment. P.33 with the aim of achieving our MARKET.” PARI 2025: targeting “Zero target of “Zero accidents, zero accidents, zero snagging”. P.36 snagging” by 2025. The aim of An agile and effective organization HOW DO YOU ENVISION 2018? “PARI” is to consolidate the culture of of business support functions. P.38

In 2018, we will need to achieve our goal safety at Teréga and our partner com- Working towards equality at work and of becoming fully integrated in the na- panies based on an innovative inte- against all forms of discrimination. P.40 tional and European energy market. grated approach. Awareness of risks, Teréga is increasing the pace At a national level, there will soon be just specific training, use of new tools - this of its digital transformation. P.42 a single market, Trading Region France is our vision of safety in the future. To (TRF), effective as of 1 November of this realise these projects, I know I can count GAS: ACCELERATING year. We have all the tools we need to on high-quality teams fully committed to THE FUTURE Gas: a strong link meet this considerable challenge. This ensuring Teréga’s success. in the energy transition. P.46 year will also see our storage activities R&I: exploring coming under regulation. We will conti- new avenues. P.49 nue to apply the full range of our exper- Projects dedicated to achieving tise to achieving security of supply, a na- energy excellence. P.50 tional energy independence priority that is also a matter of concern to the daily lives of the French people. INDICATORS P.52

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 5 THE TERÉGA NETWORK

The Teréga network 5,055 KM OF PIPES 14% 16% OF THE FRENCH GAS OF THE TOTAL VOLUME OF TRANSPORT NETWORK FRENCH GAS IN THE TERÉGA NETWORK

24.5% OF FRENCH CAPACITY 6.5 GM³ TOTAL GAS STORAGE CAPACITY 2.84 GM³ MARKETABLE VOLUME

6 THE TERÉGA NETWORK

The Netherlands DUNKERQUE Norway

Russia

MONTOIR TERÉGA HAS BEEN Algeria GRTgaz Nigeria (North and South) Germany Switzerland PRESENT IN THE SOUTH-WEST OF FRANCE FOR OVER 70 YEARS.

Algeria Spain

BLAYE

AURILLAC LIBOURNE CASTILLON BASSENS BORDEAUX LA BATAILLE

ARCACHON SAUVETERRE- DE-GUYENNE

LA TESTE

MARMANDE FIGEAC ILLATS VILLENEUVE- FUMEL SUR-LOT RODEZ CAHORS

LALBENQUE CAPTIEUX

AGEN

MONTAUBAN

ST-AFFRIQUE CONDOM IZAUTE BESSENS ALBI

ST-SEVER DAX LUSSAGNET COUDURES GRENADE HAGETMAU AUCH TOULOUSE CASTRES

BAYONNE MIRANDE LIAS ROQUES

PAU REVEL ARCANGUES LACQ VIC-BIGORRE

CARCASSONNE TARBES BILLÈRE BARBAIRA BORDES CRUZY PAMIERS OSSUN BOUSSENS LOURDES LARRAU ST-GAUDENS ROQUEFORT

ST-GIRONS FOIX

LUCHON

PERPIGNAN

EXISTING NETWORK AMÉLIE-LES-BAINS MAIN ENTRY/EXIT HEAD OFFICE

STORAGE SECTORS

COMPRESSOR STATIONS REGIONS

BIOMETHANE INJECTION NETWORK MAINTENANCE STATION GROUP

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 7 A STRATEGIC PLAN FOR AN ENERGY SOURCE OF THE FUTURE Amid the radically changing energy market and uses of gas, Teréga has launched the IMPACTS 2025 plan to achieve its ambitions in tomorrow’s energy landscape. This strategic roadmap is structured around five priorities designed to establish the company as a key player in the European energy sector.

PRIORITY 1 PRIORITY 2 TO GUIDE CONSUMERS TO IMPROVE EFFICIENCY AND THE MARKET AND RESPONSIBILITY

As the energy transition unfolds, the gas market To become an energy source of the future, natural is undergoing major changes. Whether shippers, gas must maintain its competitiveness with other en- distributors or adjacent operators under contract, ergies, in particular by effectively managing the costs customers are faced with a wide range of ener- of developing and operating infrastructures. Teréga is gy options, in a context of increased competition. striving to become a leading light in effective resource That is why Teréga has set itself the target of im- management. This will enable us to continue develop- proving the quality of its customer relationships ing regulated activities, to develop new unregulated and of pre-empting their future energy needs to services and thus to remain competitive in our markets. build long-term business relationships with them. This sense of responsibility also involves establishing Guiding consumers and the market also means effective rules for the prevention of industrial accidents being more effective in attracting new customers. and hazards to achieve our target of “Zero accidents, How? By improving our understanding of their zero snagging”. Finally, our sense of responsibility also expectations and by developing an “à la carte” extends to a concern for the environment. That is why

service with the aim of offering global solutions to we are seeking to reduce the CO2 emissions generated tomorrow’s energy challenges. by our activities, our aim being to reduce as far as possible our impact on the planet and biodiversity.

8 PRIORITY 3 TO INCREASE OUR VISIBILITY

While remaining attached to its area of operation, Teréga is consolidating its position on the national stage and in the public debate with a view to increasing its standing and influence. The company also needs to make a name for itself at a European level because that is where the major challenges of the energy market lie. PRIORITY 4 In this radically changing market, our ambition is to TO SECURE secure recognition of the role of gas in the energy transition, to develop new uses of gas and to capital- AND ACCELERATE ise on the importance of infrastructures in the consol- idation of a true Europe of energy. All of this requires In the near future, gas will be far more than a fossil increased visibility among political and institutional fuel. The 2015 energy transition law sets ambitious decision-markers, in both Paris and Brussels. targets for the development of renewable gas, the aim being for it to cover 10% of national consumption by 2030. Faced with new horizons that are opening up, Teréga needs to accelerate the enhancement of its infrastructures and expertise. It will no longer be possible to consider gas in isolation since it is becoming a key element in increasingly diversified energy balances and mixes PRIORITY 5 to meet the needs and expectations of consumers. TO REINVENT THE The links between gas and electricity will multiply as a result of new technological advances, thanks COMPANY’S DNA in particular to technologies such as Power to Gas. The changing uses of gas also presage a real mo- In order to meet these challenges and play its full bility revolution. For example, the Cadre d’action part in tomorrow’s energy landscape, Teréga needs national pour le développement des carburants to carry out its own internal revolution. We need to alternatifs (National Policy Framework for the De- rethink our ways of working and move towards great- velopment of Alternative Fuels) has set a target of er agility. To do so, we are going to reinvent the com- 80 CNG (Compressed Natural Gas) stations by the pany’s DNA and renew our styles of management end of 2020 and 115 stations by the end of 2025, and of dealing with human resources by giving more compared to 40 at present. leeway to both individual and collective initiatives that contribute to the deployment of IMPACTS 2025, promoting horizontal schemes, integrating individual career paths in skills development programmes and developing working methods that draw on the full potential of digital tools.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 9

GOVERNANCE

BOARD OF DIRECTORS

Teréga is a société anonyme (public limited company) governed by a Board of Directors, which reflects its shareholding. Appointment of Dominique MOCKLY as Chairman of Teréga SA. The governance of Teréga has changed. Having been Chief Executive Officer since 31 July 2016, Dominique MOCKLY was appointed as Chairman of Teréga SA in November 2017 by a unanimous resolution.

COMPOSITION OF THE BOARD OF DIRECTORS OF TERÉGA SA

PAOLA BOROMEI CHRISTOPHE LE CORNEC NICOLAS MACHTOU

DOMINIQUE MOCKLY PAUL PERONA FRANCO PRUZZI

ETHICS CODE A Code of Ethics was adopted in February 2015 and circulated to all staff. The code is designed to apply to all Teréga staff, but also to any person contributing, whether in France or overseas, to achieving the objectives of the Teréga group. This reference document reminds us of the ethical principles and values that must inspire and guide the actions of all Teréga staff. One particular focus is the prevention of corruption and the defence of human rights. It is made up of directives and policies. In the area of corruption prevention, Teréga is putting in place measures consistent with the law of 9 December 2016 on transparency, the fight against corruption and the modernisation of economic life, also known as the Law Sapin II.

10 EXECUTIVE COMMITEE

MICHEL BOCHE GILLES DOYHAMBOURE BRUNO TOSTAIN Infrastructure Projects Division Chief Business Chief Security - Health -

1 and Regulation Officer Safety - Environment Officer 4 8

DOMINIQUE BOQUILLON Communication and Institutional VALÉRIE LE GARS DANIEL WIDERA Relations Director Chief Human Resources Officer Chief Transformation, Digital

2 and General Secretary and Performance Officer 5 9

PAOLA BONANDRINI Chief Officer Operating DOMINIQUE MOCKLY ROBERTO ZINGONI

3 Chairman Chief Financial and Chief Executive Officer and Purchasing Officer

6 10

JÉRÉMY PERROT Head of Strategy and Innovation

2 7 6 3 1 10 9 8 4 5

CERTIFICATIONS ISO 14001 – Environmental management system ISO 50001 – Energy management system ISO 9001 – Quality management system (odorisation of supplied gas, maintenance and regulatory audit of volume conversion devices)

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 11 ACROSS ALL THE SOUTHERN AREAS, OUR TEAMS DESIGN, BUILD AND MAINTAIN THE NATURAL GAS TRANSPORT AND STORAGE INFRASTRUCTURES.

TERRAIN & TERRITORY

The Trading Region France is the end result of the development TRADING of a single gas market begun in 2005. Though eagerly anticipated, REGION the introduction of France’s new single market area, scheduled for late 2018, is also a major FRANCE: challenge. Teréga is preparing for its operational deployment A GAME- through consultation and with a range of new tools to enable its customers to make optimum CHANGER use of it.

From 1 November 2018, there will be just one single market area in France – the TRF (Trading Region France) – entailing a single market place.

14 rading Region France (TRF) will area of the TRS led to the early imple- succeed Trading Region South mentation, in the winter of 2017-2018, of 1 NOVEMBER T (TRS) on 1 November 2018. The some of the regulations planned for the 2018 result will be both a more competitive TRF. In this context, a new incentivising French market integrated with the main market mechanism known as locational LAUNCH OF THE NEW European and global marketplaces and spread was used. Traded on the electron- SINGLE MARKET greater security of supply. Launched in ic trading platform PEGAS, this innovative 2016 in collaboration with the other key product is designed to encourage cus- players in the French market, the consul- tomers to change their supply scenarios tation on the new single market for gas in order to relieve a known congestion continued in 2017 with the specific aim of front. The initial purchases of locational defining its operating rules. spread, made in November and Decem- ber, have proved promising. The teams at the Direction Commerce et Régulation (Trade and Regulation Man- New market tools agement Team, or DCR) played a key role To support customers in getting to grips in the consultation process to ensure cus- with the new mechanisms governing the tomers are provided with logistical ser- single gas market, Teréga has designed vices of the highest quality. Their progress an original learning tool called Game of prompted the Commission de Régulation Flows. Developed in collaboration with GRTgaz, this solution is based on serious game principles. THE RESULT WILL BE Nominated for the Innovation A MORE COMPETITIVE Awards at the World Gas Con- ference, which will take place FRENCH MARKET in June 2018 in Washington DC (US), this fun training tool is INTEGRATED WITH currently for the exclusive use THE MAIN EUROPEAN of our staff and customers. AND GLOBAL Pivotal co-construction phases MARKETPLACES. 2017 was a year rich in discussions with the GRTgaz network de l’Énergie (French Energy Regulatory manager in the context of the coopera- Commission, or CRE) to carry out a major tion agreement established to operate public consultation, resulting in the publica- the TRS on a shared management basis. tion in October 2017 of a ruling on the oper- The agreement is due to be extended in ating conditions for the creation of the TRF. 2018 to cover the operation of the TRF.

Controlling the impact of residual Finally, in late 2017 we began developing congestion and construction work application solutions and data exchange A detailed study was conducted of the interfaces dedicated to the TRF in our in- rules governing the mechanisms for man- formation system. These tools are due to aging residual congestion and the pub- become operational on 1 November 2018 lication of reductions in capacity due to for the launch of the new single market. construction work programmes. The re- In actual fact, the new market will be- duction of their impact has been the focus come operational five days earlier, on of long and sometimes difficult discus- 27 October, with the publication of the sions, not least because their application first vigilance index (index D-5) as part could have a significant impact on the of the monitoring of residual congestion operating procedures governing access in the TRF. Throughout 2018, we will also to transport and storage infrastructures. be holding regular meetings with our customers to support them through this Early implementation transformation of the market. The episodes of congestion seen during the winter of 2016-2017 in the South-East

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 15 TERRAIN & TERRITORY

The Renforcement Gascogne Midi (RGM) project involves RGM: TOWARDS the construction of a pipeline 61.8 km in length A MORE connecting Lussagnet in the Landes to Barran in the Gers, with the installation FLUID AND of a new compressor station in Barbaira (Aude). HOMOGENEOUS A strategic project, RGM will serve to increase distribution capacity as NETWORK part of the merger of the North-South markets through INTERVIEW WITH MATHIEU RUSSAC the creation of the Trading RGM Project Manager Region France. Corporate Social Responsibility (CSR) standards at the site have been exemplary. Project leader Mathieu RUSSAC provides a greater insight into the RGM project.

Cladding operation WORK ON THE ROUTE at the RGM site. D’ARTAGNAN

As the first European horse-riding trail, the Route d’Artagnan connects Lupiac in the Gers, the home village of the famous musketeer, to Maastricht in the Netherlands. According to Alain LIBÉROS, president of the Association Européenne de la Route d’Artagnan (European Association for the Route d’Artagnan, or AERA), “[the trail] symbolises the revival of the spirit of the musketeers at the service of the promotion of European citizenship, solidarity, diversity and friendship among the peoples of Europe”. Having been asked to do so by the commune during the meetings held with elected representatives to prepare for the Renforcement Gascogne Midi, it has been an honour for Teréga to be involved in such a convivial and dynamic project, highlighting both deep local integration and a resolutely European commitment – two shared ambitions.

16 WHAT IS THE AIM OF THE extensive consultation with all the relevant RENFORCEMENT GASCOGNE actors in the areas affected by the project, MIDI PROJECT? including elected representatives, local res- 61.8KM The aim of this major national gas transpor- idents, farmers and industrialists. Our ap- OF UNDERGROUND tation network is to ensure the nationwide proach has paid dividends since we have GAS PIPELINES distribution of gas. The infrastructures link- signed reciprocal easement agreements ing northern and southern France have suf- with all of the owners of the various plots fered from congestion. One consequence of land through which the pipeline passes. of this has been a difference in distribution We have also developed sustainable re- 900MM IN PIPE DIAMETER prices between the two regions. In short, lationships with the 20 affected communes through the Renforcement Gascogne Midi and their mayors. With their ears always representing, in terms of raw materials, project, Teréga is providing a solution to re- close to the ground, the Teréga teams have 20,000 tonnes of steel, 20% of which is recycled lieve congestion in the network and iron out been reaching out throughout the project regional price differentials. RGM will also to local residents through public meetings lead to increased transit capacity, improve and regular newsletters updating residents 1.20M exchange flows and contribute to greater on the progress of the work. Close engage- MINIMUM BURIAL DEPTH security of supply. ment with local residents enables us to be responsive and to provide quick answers 85 BARS WHAT IS THE MAIN STRENGTH tailored to their questions and grievances. MAXIMUM PRESSURE OF THE PROJECT? Its main strength is its territorial integration, WHAT IS THE ECONOMIC IMPACT which is both respectful of local populations OF THE PROJECT AT A LOCAL LEVEL? 1 ADDITIONAL and environmentally friendly. The RGM pro- The companies in charge of this construc- COMPRESSOR ject draws on our expertise in biodiversity tion site have recruited over 10% of the compressor at the Barbaira compressor station, with a power of 7 MW preservation, water management and the workforce from the surrounding areas. Their reduction of the environmental footprint. employees live close to the route of the 1 INTERCONNECTION GRID Our approach is based on three core prin- pipeline, generating additional income for at Lussagnet local restaurants, hotels, garages 4 NEW OR MODIFIED and shops. The economic impact BLOCK-VALVE STATIONS “WE HAVE DEVELOPED arising from the construction of in the communes of Sion, Castillon- Debats, Barran and Auch (North) the infrastructure in the regions SUSTAINABLE of Nouvelle-Aquitaine and Occit- RELATIONSHIPS WITH anie is currently estimated at 10% of the total cost of the project. JULY 2017: ALL THE ACTORS IN start of construction work WHAT ARE YOU MOST PROUD OCTOBER 2018: facility put into service THE AREAS AFFECTED OF? What makes me most proud is BY THE PROJECT. ” seeing a close-knit team succeed in delivering an infrastructure of ciples: avoiding difficult or challenging ar- this scale within such a short time frame, all eas by opting for the routes with the least thanks to our skill and experience in man- impact, reducing environmental impacts aging complex, multidisciplinary projects, through specific technical solutions such whether in relation to administrative engi- as the dry crossing of waterways (conser- neering or the construction of engineering vation fishing, substrate restoration and works. The key ingredient of our expertise construction of bypasses) and, as a last re- is the sheer human energy we’re able to sort, off-setting. As part of these off-setting harness. Every person involved in the pro- measures, Teréga has acquired 8 hectares ject is proud to be involved in this collective of mature woodland and 3 hectares of wet- endeavour – you can see that, and it’s very lands of major ecological significance in an exciting. effort to promote biodiversity.

IS CONSULTATION KEY? Human, economic and agricultural activities have been a major focus. True to our culture of dialogue, we have engaged in

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 17 TERRAIN & TERRITORY

A cross-border pipeline system designed as part of a major gas STEP: transmission network, STEP (South Transit East Pyrenees) will connect A EUROPEAN the networks of France and Spain. Leading the project on the French side, Teréga will build a gas pipeline PROJECT 120 km in length in the east of the departments of the Aude and IN ENERGY Pyrénées-Orientales. This major project will connect Teréga’s existing compressor station in Barbaira SOLIDARITY (Aude) to the Spanish border in the most accessible part of the Pyrenees (Pyrénées-Orientales).

Teréga’s existing pipeline close to the Château d’Aubiry in the commune of Céret.

18 his project achieves the objectives formal decisions by the authorities. On 5 Key deadlines in 2018 set for energy solidarity and the July 2017, the CNDP appointed two spon- The announcement of the chosen foot- T construction of a true European sors to ensure the debates were properly print has been made after the CNDP has energy market while ensuring greater se- conducted, transparent and genuine. On reviewed the sponsors’ report in March curity of gas supply, improved exchange 4 October 2017, the CNDP approved the 2018. Technical studies of the fauna and flows and price competitiveness. The communication plan and timetable pro- flora, topography and land will then be- studies were launched at the request of posed by Teréga. gin on the chosen footprint. In 2018, Teré- the French, Spanish and European au- ga will also be submitting an application thorities following the Madrid Declara- Understanding the impacts for investment to the competent authori- tion of 2015. On 23 November 2017, the of the project ties, along with a grant application to the STEP project was formally listed as a The period of public consultation ran European authorities. Project of Common Interest (PCI) by the from 22 November 2017 to 23 January 2018 European Commission. in the two departments of the reduced study area. The focus of the consulta- Regional benefits tion was on the options for the pipeline’s Designed for the benefit of the affected route, providing an opportunity to set out areas, STEP will secure, strengthen and the benefits of the “Avoid, reduce, off- improve the operation of the regional gas set” method. As a responsible developer, network of the Aude and Pyrénées-Orien- Teréga applies this approach as part of 120K M OF PIPES tales. The project could also enable new its efforts to integrate environmental con- communes to be connected to a natural siderations, right from the conception of 2 DEPARTMENTS gas network. Teréga has also begun a the project and routes with the least im- (Aude and feasibility study for biomethane deposits pact. At this stage of the project, Teréga Pyrénées-Orientales) as part of efforts to promote the devel- is focused on locating a route that avoids opment of other projects throughout the areas of environmental, human, social 7 OR 8 BLOCK-VALVE study area. The project may also help to and security significance. The second STATIONS promote the development of digital ac- stage will involve identifying measures cess locally. aimed at reducing the impact on areas that cannot be avoided. Any indication Voluntary consultation that such measures are insufficient will €290M From a very early stage, Teréga engaged immediately trigger the purchase of com- COST ESTIMATED in discussion and meetings with local ac- pensatory areas. The public meetings (French section) tors in the affected areas, with over 140 have served to highlight concerns over meetings having taking place by late No- agriculture, the environment, consultation vember 2017. In the wake of these meet- and energy transition. Teréga will provide ings, Teréga decided to make a voluntary answers and commitments in response to 16 MEETINGS (PUBLIC, referral to the Commission Nationale these questions after the publication of LOCAL AND CLOSING) du Débat Public (French National Com- the CNDP’s assessment report. Based on mission for Public Debate, or CNDP) to the views collated to date, the East foot- NEARLY 370 PEOPLE give greater structure to the consultation print appears to be the footprint with the process and to seek public input, there- least impact and the greatest opportuni- OVER 500 CONTRIBUTIONS by enriching the project ahead of any ties for the affected areas. OVER 1,600 VISITORS visitors to the website

MID 2019 THE KEY DATES Submission of the 2021 OF THE PROJECT administrative Start of construction work file

1 st quarter of 2019 2020 END OF 2022 Definition of the Public inquiry Facility put into service provisional route

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 19 TERRAIN & TERRITORY

In 2017 (the last year in negotiated regime mode), Teréga set a record AN for commercialised technical capabilities and subscriptions. EXCEPTIONAL At the market’s request, in 2018 Teréga’s service offering will be adapted to meet the new regulatory PERIOD FOR requirements. TERÉGA’S STORAGE ACTIVITIES

Lussagnet storage center.

20 nacted on 30 December 2017, the Flawless performance new law putting an end to the Teréga will continue to develop the re- 30 DECEMBER E exploration and exploitation of lationship of trust built with its customers 2017 conventional and non-conventional hy- and the market as a whole over recent drocarbons in France will provide for the years by taking advantage of the oppor- NEWLY REGULATED regulation of natural gas storage under tunities created by the introduction of the STORAGE ACTIVITIES. article 12. Storage capacities will be sold Trading Region France, the new single by auction. The positive or negative differ- market, on 1 November 2018. This relation- ence between the proceeds of the auc- ship of trust was built on the strength of tions and the regulated revenue of storage a tailored service offer, but also on the operators, determined by the Commission availability of the services offered. This 99.8% reached 99.8% in 2017. LEVEL OF TRUST Our customers have of Storage customers TERÉGA PLACES always benefited from the capabilities CUSTOMERS AND acquired in Teréga’s NATIONAL storage facilities, thanks to the techni- SECURITY OF SUPPLY cal performance of our engineering work AT THE HEART OF ITS and the availability of the company’s in- PRIORITIES. stallations. Our flawless availability has de Régulation de l’Énergie (French Ener- meant that our customers have been able gy Regulation Commission, or CRE), will to take advantage of major economic be offset by the natural gas transmission opportunities during physical tensions on network use tariff, also known as the ATRT the European networks and markets and (third-party access to the gas transporta- to optimise their supply strategy. tion network) tariff. The arrangements for the implementation of the regulation and Now more than ever, in the new context of the conditions governing the sale of nat- sales by auction with zero reserve prices, ural gas storage for the 2018-2019 period performance and technical availability are set by the CRE’s ruling of 22 February will be key decision-making criteria for 2018. The scope of the storage capabilities Teréga’s customers. Technical efficiency, included in the Regulated Asset Base is es- the pursuit of an ambitious development tablished by the Programmation Plurian- plan and awareness of customers’ needs nuelle de l’Énergie (Multi-Year Energy Pro- in this new environment will remain vital gramme, or PPE). It is expected to undergo to the future success of the company’s revision before the end of 2018. storage activities.

New commercial levers Teréga has been supporting this reform for many months and is responding to this historic shift by maintaining its commitment to placing customers and national security of supply at the heart of its priorities. Subject to approval by the CRE, the new commercialisation framework will curtail the commercial creativity for which Teréga has always been known. Teréga’s commercial teams have therefore been exploring new levers as part of our commitment to ensuring full stocks, a key requirement for maintaining standards of technical performance.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 21 TERRAIN & TERRITORY

Nearly a quarter of France’s gas storage capacity is concentrated THE in Teréga’s underground natural gas storage facilities located LUSSAGNET in Lussagnet and Izaute in the Aquitaine Basin. In late 2017, the Lussagnet concession STORAGE SITE was extended to 2043. To secure supply and increase storage IS LOOKING performance, Teréga has added two new wells on site. TO THE FUTURE

The SMP 104 drilling rig during setup.

he underground natural gas storage facility located in Lussagnet T (Landes) is operated as part of a storage concession granted by the Ener- gy Minister and sanctioned by the French Mining Code. A decree of 25 March 2003 had authorised the operation of the Lus- sagnet storage facility until 1 January 2018.

Concession extension application launched in 2014 In 2014, ahead of the deadline and by way of anticipating potential difficulties in the application process, Teréga put together a multidisciplinary team tasked with preparing an application to extend the concession for a further 25 years, bringing together specialists in Permitting Services, Operations, Storage, Geosciences, Law, Se- curity, the Environment and Finance. Their teamwork and commitment meant that the extension application was delivered to the Ministry of Energy on 31 March 2015.

Coordinated by the Prefect for the Landes, the local processing of the application ran smoothly. At the end of the public inquiry held between 17 December 2015 and

22 22 January 2016, the inquiry commissioner reach a decision on the extension of the management of the drill site, the latter en- issued an unreserved recommendation in concession - amounting, in effect, to an trusted to external contractors. favour of extending the concession, not- implicit rejection of the application. How- Based in Lussagnet, Teréga’s Well Drilling ing that “the benefits that have been set ever, a favourable opinion issued by the team was integrated on site with the Stor- out outweigh the examined drawbacks”. Conseil d’État (France’s Council of State) age Operation and Security and Environ- The administrative departments consult- on 17 October 2017 finally offered hope of ment teams. The close-knit set-up allowed ed also responded favourably to Teréga’s a happy outcome to the application. In for optimal management of the design request, recognising the suitability of the the end, the Lussagnet concession was constraints and the full range of opera- company’s technical and financial capa- officially extended for a further 25 years tional interfaces that are inherent to this bilities and the quality of the measures tak- by a decree of 8 December 2017. The kind of project. Teréga’s engineering team en to monitor the environmental impact of favourable ruling was a just reward for also works in close contact with our oper- Teréga’s activities. Teréga’s targeted, proactive mobilisation ations, ensuring high standards of opera- around this long-term project, all thanks tional responsiveness. Proactive mobilisation to the commitment and professionalism Teréga’s support functions have played Filed with the Ministry in June 2016, the ap- of the company’s teams. Teréga is now an important role in ensuring the smooth plication was then assessed by the Bureau licensed to operate the underground running of the operations. Their expertise Exploration et Production des Hydrocar- storage facility in Lussagnet until 1 Janu- has contributed to ensuring the successful bures (Office for the Exploration and Pro- ary 2043. conclusion of contracts, compliance with duction of Hydrocarbons or BEPH, which regulations, good security management, has since been renamed the Bureau des Two new wells in Lussagnet sound management of drill cuttings, effec- Ressources Énergétiques du Sous-Sol, or tive administrative management and the Office for Subsurface Energy Resources). Two further wells were drilled at the Lus- preparation of the Plan Général de Co- Following a favourable recommendation sagnet storage site in the second quar- ordination (General Coordination Plan, or issued on 23 February 2017 by the Con- ter of 2017. The undertaking was both a PGC), among other matters. seil Général de l’Économie, de l’Industrie, response to the growing demand for de l’Énergie et des Technologies (France’s flexibility from shippers and a preventive New drilling plans for 2018 General Council for the Economy, Indus- measure against potential downtime on As part of the WELL54 project, in 2018 try, Energy and Technologies, or CGEIET), certain wells. Teréga will be drilling two new injection the application encountered two obsta- and production wells at the Lussagnet site, cles: first, a risk of non-compliance with Deadlines met to be followed by two further wells in 2019. European competition law and, second, The drilling campaign for the two new in- Building on the 2017 campaign, these new delays caused by the legislative elections jection and production wells (LUG-75 and operations will be managed along the and the change of minister. Faced with LUG-76) was carried out between early same lines, with the added benefit of the May and mid-July 2017 using the lessons learned from last year. In addition, SMP 104 device, amid good secu- two workovers are planned for 2018, with THE WELL DRILLING rity conditions and within budget. at least a further two to follow in 2019. The well drainage operations car- As one of the company’s core activities, EXPERTISE OF THE ried out in November 2017, focus- the well drilling expertise of the Lussagnet ing on brine production and gas Storage Department represents a major LUSSAGNET STORAGE conditioning before handover to performance lever for Teréga. DEPARTMENT the operations team, meant that the wells were ready to be put into REPRESENTS A MAJOR service in late 2017, as scheduled.

PERFORMANCE LEVER In-house expertise FOR TERÉGA. Successful completion of the work was down to Teréga’s own well-drilling specialists. The entire the threat of a blocked application and operation was managed internally by our uncertainty over the extension of the con- small team of experts, in full compliance cession, our teams were able to pre-empt with established business rules and Teré- the challenges, maintaining close rela- ga policy, from the supervision of well en- tionships with the ministry’s processing gineering and the selection of equipment services and harnessing their resources in and materials (lining, wellhead, comple- an effective and targeted manner. tion, etc.) and drilling rig to the choice of By May 2017 (the statutory deadline for oil and gas service companies (cemen- such applications), the Minister had yet to tation, screwing, well logging) and the

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 23 TERRAIN & TERRITORY

Every day, Teréga’s intervention teams work NETWORK to ensure the smooth operation, maintenance INTERVENTIONS: and surveillance of the 5,000 km of pipework across our network - A DAILY a daily management operation that is key to COMMITMENT maintaining the security and performance of the network.

Maintenance operation.

24 s the guarantors of the integ- The sound management of the opera- rity and maintenance of our tion of the gas pipeline determines its A facilities, our operations and performance 75% maintenance teams monitor the securi- Gas distribution, supply and injection GREENHOUSE GAS ty and availability of the infrastructures must be carried out in compliance with EMISSIONS at all times to ensure the continuity and contractual obligations. In 2017, the out- avoided in 2017 during maintenance work quality of our gas distribution services. standing level of availability of Teréga’s on the pipes infrastructures meant that we were able As field operators, these outstanding to provide the best quality of service to professionals are the face of Teréga na- our customers, with no interruption of tionwide. Every day, they travel for kilo- supply, all thanks to the efficiency of our metres along our network of pipes, both systems and the professionalism of our on foot and by car. Their duties include operations teams. -8% carrying out planned maintenance work, EVOLUTION monitoring changes in the environment, Improving the reliability of our facilities OF THE NUMBER OF UW supervising the integrity of our facilities remains a daily objective to reduce net- between 2016 and 2017 and identifying and responding to acts work failures and optimise security. Our of vandalism committed on the pipes. approach is driven by a constant quest for continuous improvement. PREVENTION IS THE New procedures have been implemented to limit decompres- MOST EFFECTIVE sion and the greenhouse gas emissions into the atmosphere MEANS OF REDUCING which they cause during main- THE RISK OF tenance work on the pipes. In 2017, we were able to avoid 75% SNAGGING. of these leaks. With their focus squarely on customer service They are aided in their work by aerial and satisfaction, our operators forge surveillance of the infrastructures to help close links in the field and perform their them identify potential threats. duties on the ground for Teréga with one core value at the forefront of their minds: In 2017, we continued with the pro- to guarantee security in the broadest gramme implemented since 2015 to re- sense of the term for workers, installa- duce the number of Undeclared Works tions and the environment. (UW) carried out by third parties, which can affect the integrity of the pipes. UW fell by 8% compared to 2016. What this shows is that prevention is the most effective means of reducing the risk of snagging. To date, nearly 28,000 letters have been sent to local residents as part of the information and awareness campaign conducted in the affected areas.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 25 WE HAVE INTENSE AND INVOLVED RELATIONS WITH OUR CUSTOMERS, OUR STAFF AND OUR PARTNERS – YET ANOTHER DIMENSION OF OUR NETWORK.

NETWORKS & RELATIONSHIPS TERÉGA PUTS ITS CUSTOMERS AT THE HEART OF ITS STRATEGY

Teréga provides a n 2017, Teréga increased its involve- example, their visit to the RGM (Renforce- ment with business partners and re- ment Gascogne Midi) pipeline construc- personalised service offer I gional players by holding multiple tion site provided them with an insight into ever more tailored to consultation meetings and customer con- the key role that this flagship project will the needs of its customers. ferences, notably in Paris. play in France’s future single gas market. This approach is based on In Paris, Teréga offered double the num- Teréga is also committed to supporting ber of training days compared to the 2017 biomethane producers in optimising their understanding customers’ edition of its Training Session programme. approach to the provision and storage economic and business These thematic workshops devoted of this energy source. Teréga is planning priorities, constantly to the mechanisms of transport and stor- to extend these services to users of other age services and operational business fossil fuels to establish natural gas and focusing on the quality management (programming, allocation, biomethane as transition fuels, by setting of the services provided balancing, billing, etc.) provide support out their benefits for heating, industrial and maintaining close to Shipping customers and help them processes and sustainable mobility. By business relationships. in the day-to-day management of their ensuring product quality, Teréga is pro- business. viding biomethane producers with ac- The success of the 2017 edition in terms cess to a new pool of consumers, with no of participation confirmed the interest of strings attached and no seasonality and Shipping customers in our innovative and across a far wider area. educational workshops, which is why they are being offered again in 2018. Teréga is also bolstering its presence in the field. Our ambitious new programme of field visits and a new conference format will offer our customers a new perspective on our gas infrastructures. For

28 2017 SATISFACTION SURVEY

As a market-driven business, Teréga regularly assesses the quality and performance of its services among its customers to ensure their expectations are being met. The biennial satisfaction survey carried out in the autumn of 2017 measured changes in levels of satisfaction with its service offer among Shipping customers. (as a percentage of satisfied or very satisfied customers)

OVERALL SATISFACTION The increased flexibility of our storage services WITH TERÉGA is very popular with our storage customers. • 100% of customers are satisfied The quality of operational and business ex- or very satisfied with Teréga changes is recognised. The proportion of very satisfied customers is 58%, representing a significant increase (+19% compared to 2015). DIGITAL INTERFACE • Our IS publishing portals: 84% • Percentage of mobile app users: 30% PERCEPTION OF TERÉGA • Content and ergonomy • Reliability: 100% of mobile application: 85% • Transparency and The level of perceived improvements to the non-discrimination: 94% current customer interface remains limited. • Dynamic adaptation Our customers are awaiting the new Customer by Teréga: 83% Web portal planned for 2018. • Response to customers’ needs: 95% • Service improvement: 49% • Innovation: 80% SUPPORT THROUGH MAJOR CHANGES • Actor in the energy transition: 34% • Quality of the support provided The business and innovation dynamic by Teréga: 98% is on the up. • Level of consultation with Teréga: 97% Our services are clearly perceived • Access to information: 93% to have improved. Our customers rely on Teréga to support and guide them through the major structural changes happening in 2018 (storage regulation PRODUCTS AND SERVICES and launch of the new marketplace). • Products and new services in flexible storage: 100% • Transport services: 96% • Business and operational relationships: 96%

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 29 NETWORKS & RELATIONSHIPS

A new business structure A responsible and sustainable terms of Health, Safety and the Environ- To meet these challenges, Teréga rede- purchasing policy ment (HSE). signed its regional strategy in 2017, pro- Safety in particular is a major priority, at moting closer relationships with local In 2017, Teréga made purchases total- all levels. We are careful to list compa- energy players and taking a more active ling €204 million, with local purchases nies with an established safety culture, role in the implementation of the Plans of works and services representing the demonstrated generally by a MASE cer- Climat-Air-Énergie Territoriaux (Regional bulk of these. Our supplier relationships tification (Manuel d’Amélioration Sécu- Climate-Air-Energy Plans). In particular, are characterised by high expectations in rité des Entreprises, or Corporate Safe- our sales representatives have redoubled ty Improvement Manual) or equivalent their efforts on the ground, seeking to be standards such as OHSAS 18001, and we more in tune with consumers so they can TERÉGA encourage companies that have gone make the most out of their use of natural down this path. gas and biomethane in the future. The PROMOTES end result of this transformation will be HSE certification Teréga’s new “Territoire” (“Territory”) struc- CLOSER Teréga has put in place its own HSE cer- ture, to be implemented in 2018 and 2019. RELATIONSHIPS tification system. Certification, which is mandatory for any supplier whose activ- WITH LOCAL ities pose a risk to our facilities and staff, is a guarantee of good risk manage- ENERGY PLAYERS. ment, thereby contributing to our “Zero accidents, zero snagging” target. In 2017, Teréga issued HSE certificates to 186 businesses, 88 of which were MASE-certified. By year end, 43% of HSE-accredited suppliers were MASE-certified. Our focus on safety also extends to our suppliers’ sub- contractors, who are required to hold this certification and to implement our HSE standards at work sites, if their intervention requires it.

30 Minimal impact Local impacts TERÉGA LAUNCHES Teréga also seeks to reduce its suppli- As a major socio-economic player in ITS AMBASSADORS’ ers’ environmental impact. Right from the the South West of France, in 2017 57% of CLUB design and drafting of specifications, we our purchases were from local suppliers, Teréga has launched an lay down specific environmental stand- representing €116 million paid to 536 lo- important programme to ards which are systematically assessed, cal suppliers. Beyond the contracts we overhaul its online customer whether in terms of business travel man- have entered into, these local purchas- interface. The development agement, use of consumables, waste es support regional economic activi- of a new digital platform management or energy consumption ty and contribute to the emergence of will provide customers with projects that create both direct innovative functionalities and indirect jobs - key drivers of tailored to their operational TERÉGA SEEKS social and societal development. efficiency needs and performance requirements. TO REDUCE In 2018, Teréga will be increasing Our customer-focused approach has led us to its commitment to CSR by sign- ITS SUPPLIERS’ involve customers upstream. ing the Relations Fournisseur Re- Teréga has invited them sponsables (Responsible Supplier ENVIRONMENTAL to join its Ambassadors’ Relations) charter of the Conseil Club. This new forum is an IMPACT. National des Achats (French Na- opportunity to exchange tional Purchasing Council). views on the needs surrounding the use of when purchasing heavy equipment. To the future portal. It enables ensure compliance with these standards, customers to become we are able to turn to suppliers holding actively involved in developing a tool they use specific certifications or accreditations, on a daily basis. such as Imprim’Vert or Eco-Collectoor Thanks to its constructive in the case of drink distributors. As far as discussions and friendly food waste is concerned, Teréga relies on atmosphere, the first edition the proactivity of its suppliers. of the Ambassadors Seminar held in Paris was a major hit with participants, who had volunteered to test the new solution. Other co-creation events will be proposed throughout the project.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 31 NETWORKS AND RELATIONSHIPS

TERÉGA BOLSTERS ITS ROLE AND INSTITUTIONAL IMAGE

INTERVIEW WITH MARIE-CLAIRE AOUN Head of the Institutional Relations Department

In a market undergoing WHY DID YOU DECIDE TO CREATE and climate matters, working in synergy significant change, Teréga is A DEPARTMENT FOR INSTITUTIONAL with Teréga’s various departments and in RELATIONS? partnership with our shareholders. strengthening its engagement In order to fulfil the objectives of the Paris at a regional, national and Climate Agreement, the pace of the ener- CAN YOU GIVE US SOME PRACTICAL European level in order to gy system transition needs to be stepped EXAMPLES OF THE MEASURES YOU increase its visibility and up. Teréga is keen to play an important HAVE TAKEN? role in this transition. We have the benefit There has been significant institutional contribution to the energy of deep regional integration in the South focus in recent months around the STEP debate as an independent West of France, but until now we had project (see p. 16). The project perfectly il- transport network manager suffered from a lack of visibility among lustrates the integration of Teréga at a re- actively involved in renewable national and European institutions. We gional level and its European dimension. therefore created the Department of In- We chose to involve the Commission Na- energies. A new department stitutional Relations with the aim of forg- tionale du Débat Public (French Nation- - the Institutional Relations ing and structuring long-term relation- al Commission for Public Debate), which Department - has been ships with all of the bodies involved in held a consultation between November the energy sector, whether at a regional, 2017 and January 2018. The decision to created to structure and national or European level. Drawing on call for a prior consultation led us, at a coordinate the overall our strategic geographical position, our very early stage in the project, to devel- strategy. aim is to raise awareness of our activities, op close links with the many stakeholders unique selling points and perspective as in the affected areas in order to discuss a private, independent French gas trans- the impact of the project at a local port and storage provider. In a context of significant regulatory change, it was becoming increasingly important to bolster our visibility and increase our contribution to the public debate on energy

32 A NOTED INTERVENTION AT THE GAS CONGRESS

In September 2017, Teréga attended the Gas Congress, a major event jointly organised by Expogaz and the Association Française du Gaz (French Gas Association). From 2018, the congress will be held annually over a single day, focusing on the topic of renewable gases.

During the three days of the Jean-Loup MINEBOIS, Teréga’s exhibition, the Teréga stand drew Trading and Regulation Director, many visitors and was a big success. hosted a debate on the future Many parliamentarians were met by of underground natural gas storage the senior management team and and its contribution to national senior institutional relations managers. security of supply. During the various scheduled lectures and round tables, company The plenary lecture by Carole DELGA, staff contributed to reflections on the President of the Occitanie region, future of energy in France. provided an opportunity for the Teréga team to highlight their regional Our Managing Director, Dominique commitment. MOCKLY, emphasised the need to increase commitment to the energy Finally, Dominique MOCKLY and transition, setting out our innovative Marco ALVERÀ, Managing Director initiatives in this area, including of SNAM, presented their view and the BE POSITIF programme (Bilan analysis of major trends in the energy Environnemental POSITIF, or Positive sector during a lunch conference Environmental Track Record). sponsored by Teréga. The political guests, representatives of the gas sector, researchers and Teréga shareholders present at the event were able to exchange views with the parliamentarians who had accepted their invitation.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 33 NETWORKS AND RELATIONSHIPS

HOW WOULD YOU DESCRIBE YOUR level. We have also intervened at na- ACTIVITIES IN SUPPORT OF THE TERÉGA IS CONTINUING tional and European levels, engaging in ENERGY TRANSITION MOVEMENT? WITH ITS SPORT particular with the Commission de Régu- As a low emitter of greenhouse gas- SPONSORSHIP AND lation de l’Énergie (French Energy Reg- es, natural gas has a key role to play in CULTURAL PATRONAGE ulation Commission), the Ministère de la the energy transition. To meet the objec- ACTIVITIES Transition écologique et solidaire (French tives of the Paris Climate Agreement and • In 2017, the company Ministry for Ecological and Inclusive Tran- achieve carbon neutrality, Teréga also maintained its sponsorship sition) and the European Commission to plans to support the development of re- partnership with Section discuss the costs and benefits of the pro- newable gas, notably biomethane and Paloise Béarn Pyrénées ject and their spread between the various Power to Gas. Here too, our institutional (Pau’s rugby union club), countries involved, particularly France strategy operates at three levels. the Élan Béarnais basket- and Spain. We will be pursuing our initia- At a regional level, we are involved in the ball club and Billère Hand- tives at all three levels in 2018, STEP hav- Schémas régionaux d’aménagement, de Ball, the three major sports ing been identified as a European Project développement durable et d’égalité du clubs of the Pau urban of Common Interest in November 2017. territoire (Regional Planning, Sustaina- area. The Teréga brand ble Development and Territorial is displayed on players’ Equality Programmes) alongside shirts, sports facilities and “TO BOLSTER local players, with the aim of re- social networks. Through ducing our carbon footprint. this initiative, we are able OUR VISIBILITY At a national level, we are con- to reach a wider audience, tributing to the revision of the Mul- AND INCREASE OUR at regional, national and ti-Year Energy Programme, a key European levels. CONTRIBUTION TO management tool of the energy • As part of its transition for the State, by setting commitment to its region THE PUBLIC DEBATE” out our objective - an objective of operation, Teréga has shared with other infrastructure teamed up with the city of Following the introduction of regula- operators - of achieving 30% of renew- Pau in two flagship events: tions to govern the storage of natural able gases in final gas consumption by the Grand Prix motor gas - another major action point - we 2030. race, held every year in approached legislators and regulators Finally, at a European level, we contin- the streets of the city, and to set out our industrial model of under- ue to be involved in the Gas for Climate the 4 Étoiles de Pau, the ground gas storage and enhance our consortium, created by nine European only four-star eventing competitive and high-performance ser- companies in June 2017. The consortium competition to be held in vice offering dedicated to ensuring secu- recently published a study showing that France. rity of supply for the end consumer. the use of renewable gases would enable • Teréga also supported A common feature of all these structur- Europe to achieve net zero greenhouse Concert’o, the patrons’ al matters is that we cooperate with the gas emissions by 2050 while saving over club for the Orchestra operations teams to promote the core 140 billon euros a year compared to a of Pau Pays de Béarn. messages of the company, the aim being “100% electricity” scenario. to establish a dialogue of trust with our institutional stakeholders.

34 NETWORKS AND RELATIONSHIPS

TOTAL COMMITMENT TO THE ENVIRONMENT

INTERVIEW WITH LAETITIA MAHENC Head of Environmental and Corporate Responsability Division

As part of the BE POSITIF CAN YOU TELL US WHAT BE POSITIF IN WHAT WAY IS THE PROGRAMME programme, Teréga is (BILAN ENVIRONNEMENTAL POSITIF) ORIGINAL? working to achieve a zero IS ALL ABOUT? BE POSITIF goes way beyond our legal The aim is to ensure that, through our ac- obligations. To my knowledge, no other environmental footprint across tivities, gas has a positive impact on the company in the French energy sector has all the company’s activities environment. The objective of the pro- taken such a proactive approach. This by 2020 and to create gramme is to gradually reduce our en- ambition is changing the culture of the environmental value from vironmental footprint in order to achieve organisation. The continuous improve- zero impact by 2020, and beyond that to ment of our environmental protection 2025, a voluntary initiative create environmental value. This will be practices has become second nature. By in line with its vision of a achieved, for example, by rebuilding and creating value, the programme is chang- sustainable future. enhancing the ecosystems through which ing our values. This day-to-day commit- our work sites pass and by conducting ment is shared by all our employees, unit- an ambitious policy to offset all our emis- ed around collective progress benefiting sions. Based on the “Avoid, reduce, offset” society as a whole. method, this initiative encompasses the management of greenhouse gases and HOW DO YOU GET STAFF INVOLVED? the promotion of renewable energies as In June 2017, we launched the BE POSITIF sources of supply. Teréga’s commitment group on the company’s social network to the environment applies at all levels available on the Intranet. This discus- of the organisation and feeds into all our sion forum already has nearly 290 mem- activities. bers, over half of Teréga’s workforce.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 35 (NGV) in Teréga’s vehicle fleet by renew- ing part of the fleet, with five vehicles running on natural gas. At our facilities, we have enhanced the technical config- urations that enable us to limit emissions caused by works-related decompression, Through it we disseminate information resulting in a reduction of 5,400 tonnes of TERÉGA IS ROLLING OUT THE ARO about the management of CO2 emissions CO2 equivalent for 2017. The decision to and the impact of our activities on biodi- purchase a mobile recompression cham- (“AVOID, REDUCE, versity, particularly during construction ber means that we will be able to recover OFFSET”) INITIATIVE works. Above all, it drives collective intel- approximately 80% of methane emissions ACROSS ALL ITS ligence in the creation of environmental related to pipeline works by reinjecting PROJECTS value by promoting the daily dissemina- the gas pumped into the works to avoid it tion, sharing and implementation of ideas. being released into the atmosphere. The first stage - avoidance - is primarily implemented A number of innovative proposals from our during pre-construction staff have been implemented or are under AND WHAT ABOUT THE FUTURE? studies. It involves diverting the Our aim is to generate our provisional route away from “CREATING own renewable energy for multiple sensitive areas through our own use, whether from areas of lesser impact. Specific ENVIRONMENTAL solar panels or by increasing measures (conservation our use of biomethane. We electrofishing, soil remediation, VALUE CHANGES are also looking at increas- etc.) are then put in place at ing our offsetting by partici- the work site during a second OUR VALUES.” pating in certified voluntary stage aimed at residual impact mitigation. The final stage carbon offsetting schemes. - environmental offsetting - study, such as the installation of beehives Finally, we are enhancing synergies with ensures there is no net loss on unused land in our gas network or the Research & Innovation (R&I) to make Teré- of biodiversity, if the two first creation of company gardens. ga an incubator of new technologies ca- stages were not enough. pable of optimising our energy efficiency WHAT WERE THE MOST NOTEWORTHY while fitting into the company’s global ACHIEVEMENTS OF 2017? strategy. Examples of this include testing

In October, we transferred all of our elec- CO2 sequestration technologies and re- tricity supply contracts to renewable en- searching innovative solutions for manag- ergy. 100% of the electricity that supplies ing our rights of way to promote their role our buildings and industrial facilities is as ecological corridors. now generated with almost no direct CO2 emissions, meaning that 3,400 tonnes of

CO2 are now offset every year. We have also introduced Natural Gas Vehicles

36 WHEN BIODIVERSITY FLOURISHES IN WOODLAND

On 22 September 2017, Teréga inaugurated 32 hectares of woodland planted as an environmental offset site in the Béarn communes of Urdès and Doazon in the Pyrénées-Atlantiques, in the presence of the Office National des Forêts (France’s National Forests Office, or ONF) and the mayors of both villages.

The purpose of this natural site is to mechanised work will be prohibited promote the habitat of several protected between 1 April and 31 July, the sensitive species following the works carried out period for the life cycles of the species, at the Béarn Artery site, including three and access to the forest will be prohibited birds (the middle spotted woodpecker, to motorised vehicles throughout the year. the spotted flycatcher and the Eurasian bullfinch) and three bats (the western All of this was explained to the barbastelle, the common noctule and schoolchildren of the two villages invited the lesser noctule). to the event, during a day of discovery in a convivial atmosphere co-run by To promote their development, the Conservatoire d’Espace Naturel the creation of three old-growth forest (Conservatory of Natural Spaces), the areas will allow trees to grow, without ONF and the Lacq Odyssée association, silvicultural intervention. The density of with the support of a programme trees conducive to biodiversity (senescent, promoting awareness of biodiversity in standing dead, etc.) will also be local forests launched on the same day. increased to six trees per hectare. Lastly, The plan is to hold similar events every year.

ENVIRONMENTAL PARTNERSHIPS

• Since 2013, Teréga has been a partner •Teréga has signed an agreement with the of the “Végétal local et Vraies messicoles” Conservatoire Végétal Régional d’Aquitaine (“Local Plants and Real Cornfields”) (Aquitaine Regional Plant Conservatory) for programme alongside the Fédération des the conservation of a range of ancient and Conservatoires Botaniques Nationaux local varieties of fruit trees. (Federation of National Botanical •Teréga has also signed multi-annual Conservatories) and the Conservatoire partnership programmes with the Botanique National des Pyrénées et Conservatoires Régionaux des Espaces de Midi-Pyrénées (National Botanical Naturels Midi-Pyrénées et Aquitaine Conservatory of Pyrénées and Midi- (Regional Natural Space Conservatories Pyrénées). The aim of this programme is of Midi-Pyrénées and Aquitaine). These to guarantee the local origin of plants by agreements focus in particular on the means of the “Végétal local” and “Vraies differentiated management of certain messicoles” certifications. areas by Teréga.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 37 NETWORKS AND RELATIONSHIPS PARI 2025: TARGETING “ZERO ACCIDENTS, ZERO SNAGGING”

-50% EVOLUTION OF THE NUMBER OF UNDECLARED WORKS OF THE MOST DANGEROUS KIND (AT A DISTANCE OF LESS THAN 5M) OVER THE LAST 5 YEARS

Safety is a core value at n 2017, Teréga launched the PARI haviours at all levels of the organisation. Teréga and its absolute 2025 (Prevention of Industrial Acci- Teréga is involved in a number of spe- dents and Risks) programme (PARI cific working groups devoted to safety, priority. To ensure the safety I meaning wager). The wager? To achieve a particularly within the Safety Academy, of our staff, partners and target of “Zero accidents, zero snagging” an initiative of the Institut pour une Cul- facilities every day, we apply by 2025. PARI 2025 promotes a culture of ture de Sécurité Industrielle (Institute for a structured and systematic safety among all Teréga’s staff and part- a Culture of Industrial Safety, or ICSI), to ner companies through an integrated ap- develop digital resources dedicated to approach that is embedded proach combining risk awareness, specif- promoting a culture of safety by sharing in all our processes. ic training, simplified guidelines and the experiences around high-risk activities deployment of new tools. with other companies. Teréga also sits on The programme is based on three pil- the Board and is a member of the Steer- lars. Technical safety is ensured and ing Committee of the MASE Sud-Ouest maintained by tailored measures and (MASE South-West) management system solutions: failure sensors, automatic pro- (Manuel d’Amélioration Sécurité des En- tection systems, etc. Safety management treprises, or Corporate Safety Improve- systems enable the implementation of ment Manual). The Steering Committee procedures and rules that contribute to is responsible for the HSE certification of ensuring safety on the ground. Human companies that volunteer for membership and organisational factors are inte- of MASE Sud-Ouest. grated from conception to operation to create conditions conducive to safe be-

38 28,000 PREVENTION NOTICES SENT OUT SINCE 2016

de Réseaux, or Notice of Works Near to Networks) and take stock of their application. They are organised in collaboration with regional and national public works authorities, the Directions Régionales de l’Environnement, de l’Aménagement et du Logement (General Directorates for the Environment, Planning and Housing, or DREAL), the Direction Générale de la Prévention des Risques (General Directo- rate for Risk Prevention, or DGPR), the major network operators and, occasionally, some prefectures. In 2017, eight damage prevention meetings were held in the Occitanie region. In 2018, the initiative will be extended to the Nouvelle-Aquitaine region. Nearly 200 network operators, project managers and companies working on behalf of regional authorities and undertaking construction and public works take part in each of these events. These initiatives serve to enhance the reputation and visibility of Teréga as a major player in the damage Going further in the prevention of or DT) and Déclarations d’Intention de prevention reform. third-party risks Commencement de Travaux (Notices of Intent to Begin Works, or DICT), which Nearly 28,000 prevention notices Third-party companies with no contractu- number over 12,000 a year, and the more Since 2016, Teréga has sent out annual al relationship with Teréga and that carry than 5,000 on-site meetings held to mark notices to the owners of the plots of land out works in the vicinity of the company’s and stake out pipelines. This focus on im- located on the pipeline route to remind 5,000 km gas network represent the most provement is continuing in 2018. them of their regulatory obligations to significant industrial risk to our facilities. file notices before starting work. These Snagging that causes a pipe leak is the Hosting of anti-damage symposiums notices are relayed by notaries, farming most feared incident. Industrial risk management is to a large unions, authorities commissioning works extent the responsibility of the third-par- and authorities responsible for issuing New “third-party work” procedures ty entities behind the works, with Teréga’s building permits. In 2017, the internal “third-party work” works being essentially confined to the management procedures were re-ex- private sector. To raise their awareness in Tangible results amined and re-drafted in collaboration relation to prevention, Teréga is actively The number of undeclared works (UW) of with operators, as part of Teréga’s risk involved in running training round tables the most dangerous kind (at a distance of mitigation policy. The implementation of and workshops. Aimed at contractors and less than 5 m) has fallen by 50% over the new tools has improved the quality and construction and public works companies, last five years. This remarkable result en- reliability of the documents drafted by the purpose of these symposiums on the courages us to pursue and intensify these our sector staff in dealing with Déclara- prevention of damage to networks is to initiatives, which are vital to the effective tions réglementaires de projet de Travaux address developments in DT-DICT regula- dissemination of the Third-Party Works (Regulatory Notices of Proposed Works, tions (Déclaration de Travaux à Proximité Culture of Safety.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 39 NETWORKS AND RELATIONSHIPS AN AGILE AND EFFECTIVE ORGANISATION OF BUSINESS SUPPORT FUNCTIONS

In 2017, Teréga radically he evolution of the business sup- departments and their collaboration changed the structure port functions is based on in- with the operations functions. Function- creased specialisation, which al links have been established with the of its business support T serves to promote the introduction of key functions of communication, security functions with the more efficient procedures. and digital, creating a new management creation of a new approach combining hierarchical and digital hub and a new Two new departments cross-functional management. The role of the Direction Hygiène, Sécu- The efficiency and agility of the business HSE initiative serving to rité, Environnement (Health, Safety and support functions will ensure the success enhance operational Environment Department, or HSE) in the of the IMPACTS 2025 plan by enabling efficiency. area of safety and security was bolstered the operations departments to focus all following the integration of operational se- their energies on the company’s strategic curity, which had previously been attached priorities. to the Direction des Opérations (Opera- tions Department, or DOP). The Direction A collaborative approach to security Transformation, Digital et Performance The collaborative and cross-functional (Transformation, Digital and Performance work of the operations and HSE teams Department, or DTDP) was created to fo- is the foundation of our approach to cus our efforts on developing and enhanc- prevention. Every Teréga employee and ing data and implementing digital solutions partner plays a role in prevention. The that will allow for increased responsiveness identification and reporting of risks en- and efficiency. The restructuring of both countered in their daily activities contrib- departments was conducted with a view ute to building a safer and more reliable to ensuring they provide optimal support to work environment. Every day, they rely on the operations departments. the HSE teams, who put in place solutions for the assessment and management of Functional agility risks as part of a structured and system- New operating procedures have been atic process of continuous improvement put in place to promote cross-functional aimed at guaranteeing the safety of cooperation between business support workers and facilities.

40 THE EFFICIENCY For our partner companies, we draft tailored HSE guidelines AND AGILITY OF THE setting out the standards to be observed at every work site. BUSINESS SUPPORT This document enables us to conduct rigorous assessments FUNCTIONS WILL ENSURE of the services provided by THE SUCCESS OF THE contractors and to monitor the application of the proposed IMPACTS 2025 PLAN. measures on the ground. This initiative forms part of our collaborative approach, which In 2017, this collaborative approach also extends to the specific support we enabled several developments to be for- provide to certain companies to contrib- malised: ute to the long-term improvement of their •the revision and updating of certain safety practices at our work sites. procedures with the aim of adapting A cross-functional working group con- them to our changing activities and or- sisting of specialists in safety, operations, ganisation, such as the policy governing procedures, training and IT has devel- the organisation, execution and man- oped a virtual reality operations simu- agement of operations at storage sites or lator. This tool reproduces intervention the procedure governing interventions on situations similar to those experienced by transport infrastructures; our technicians. It will soon enable them •the development of new measures to learn and develop skills in a secure en- aimed at prevention and the improve- vironment. ment of several existing processes, after risk and hazard analysis; •the introduction of a poster campaign illustrating safety policies and procedures relevant to different work situations.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 41 NETWORKS AND RELATIONSHIPS WORKING TOWARDS EQUALITY AT WORK AND AGAINST ALL FORMS OF DISCRIMINATION

ur policy to promote equality currently being negotiated and relating Teréga is actively committed in the workplace and gender to gender equality in the workplace will to a policy of equality in O non-discrimination aims to provide for the implementation of aware- the workplace and gender ensure equal pay for workers with equiv- ness-raising and training measures in the non-discrimination, and of alent skills, experience, qualifications areas of gender equality in the workplace and responsibilities, both at the point of and non-discrimination for staff in charge integration and retention recruitment and throughout their careers. of recruitment and managers. of persons with disabilities. We are committed to paying the same rates of annual salary increase to men Teréga is implementing many measures and women. We support equal opportu- to promote equality in the workplace nities by providing access to training and and non-discrimination of disabled career opportunities regardless of gen- persons. We facilitate their workplace der. The implementation of these commit- integration and retention. We provide ments contributes to achieving our am- day-to-day support to existing bition to increase the representation of employees from the moment they are women in the operations professions. recognised as a disabled worker or their In 2017, women represented 25% of Teré- disability worsens. ga’s total workforce. For the same length In 2017, Teréga achieved the target it had of service, the salaries of men and wom- set for itself: to meet its regulatory obli- en on the same pay scale were identi- gations, with the total number of persons cal. The proportion of salary increases with disabilities employed directly or indi- granted to women was also similar to rectly by the company representing more that granted to men. A new agreement than 6% of its total workforce. Teréga has also entered into a new agreement relating to the integration of persons with disabilities. This agreement reaffirms Teréga’s commitments NEW PROJECTS FOR 2018 in the area of equal treatment and the non-discrimination of persons with dis- • A signatory of the Charte Entreprises et Quartiers (Businesses and abilities, both at the point of recruitment Neighbourhoods Charter), a project initiated by the French Ministry of and throughout their careers. The doc- Territorial Equality and Housing and supported by CREPI, Teréga has just ument lays out the support and finan- committed to supporting the economic and social development of cial assistance measures implemented, priority neighbourhoods in the city of Mont-de-Marsan in the department depending on the type of disability. of the Landes. It also provides for the implementation of • In early 2018, Teréga’s General Resources Department hosted a school student with a mental disability for a two-week work experience awareness-raising and training measures placement to provide him with an insight into the daily life of a business. to promote equality in the workplace and The experience provided our staff with a fresh perspective on disability, non-discrimination for staff in charge of offering an opportunity for mutual enrichment. recruitment and managers.

42 A TAILORED TRAINING POLICY

In the face of an ever-changing gas market and constantly evolving professions, adapting In 2017, Teréga carried out a number Our staff have also conducted several employees’ skills is an absolute of schemes with partners to promote the exploratory interviews on behalf of CREPI priority. Teréga has responded integration of persons with disabilities with people returning to work, again with to this challenge with a bold and provide assistance to those returning a view to offering professional support training policy, which is a to work. to job seekers. Teréga also offers staff driver of performance for the the opportunity to get involved in a sup- company, based on training Integration of those furthest from the port programme aimed at helping peo- priorities defined in line with the company’s strategic and labour market. ple far from the labour market to regain operational objectives. As a member of FACE (Fondation Agir self-confidence and return to the world The priorities chosen for the Contre l’Exclusion, or Foundation for Ac- of work. In 2017, through the CREPI and 2017-2021 period with a view tion Against Exclusion) since 2011 and of FACE associations, two of our employees to establishing a tailored CREPI (Club Régional d’Entreprises Parte- supported two job seekers over a period training plan aim to develop naires de l’Insertion, or Regional Club of of three to six months. the acquisition of skills in Businesses Championing Integration) core business activities, since 2014, Teréga works actively with Integrating persons with disabilities knowledge of collaboration both organisations on a range of integra- Since 2009, Teréga has been a member tools, the deployment of tion schemes. of the “On dit Cap” business club, which digital identity, human support of transformations, security, brings together 32 companies across the compliance with regulatory In 2017, Teréga collaborated on the region. Created by the Cap Emploi asso- requirements and professional “Journée FACE à l’entreprise” (“FACE-ing ciation, this network of companies aims skills. Forming part of the training the Company Day”) integration workshops to share good practice with a view to plan, the training courses organised by FACE. These opportunities facilitating the training and recruitment provided at Teréga are guided for exchange serve to raise awareness of persons with disabilities. In 2017, Teré- by these priorities. For example, of the codes and behaviours expected of ga took part in the one-day “Rencon- in 2017, Teréga developed staff job seekers in recruitment interviews and tres handicap et maintien dans l’emploi” skills in areas such as the culture workplace settings. Teréga will continue (“Disability and Retention Encounters”) of safety and HSE management, with this support and advice initiative event organised by the association, con- consideration of the environment in business activities, new IT in 2018 by helping ten or so job-seekers, ducting several recruitment interviews on tools, technical equipment and notably through workshops. the day. material, languages, regulation and team management.

DISABILITY WEEK: AN EDUCATIONAL EVENT

From 13-19 November 2017, as it in place to promote the of specific equipment. does every year, Teréga held a integration and retention of Teréga staff received an disability awareness week aimed persons with disabilities within the information leaflet published at all company staff. The purpose company, which include adapting specifically for the occasion. of the event was to give our workplace conditions, arranging They were also invited to attend employees a greater flexible working hours, designing events tackling disability understanding of different ergonomic workstations, through a quiz game at the disabilities and to break down providing administrative support headquarters of Volta de Pau prejudice towards them. when applying for disabled (Pyrénées-Atlantiques), at the The week was also an opportunity worker status and offering Lussagnet industrial site (Landes) to communicate about Teréga’s financial assistance for a move and in Bordeaux, Pau, Toulouse disability policy, and specifically to a more suitable principal and the surrounding areas. about the support measures put residence or to fund the purchase

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 43 NETWORKS AND RELATIONSHIPS TERÉGA IS INCREASING THE PACE OF ITS DIGITAL TRANSFORMATION

Information systems (IS) have digital future. By integrating based on a SATAWAD approach (Secure a key role to play in the energy the most innovative technolo- AnyTime AnyWhere Any Device). This tech- gies, Teréga will introduce new nological shift began with the internal transition. Digital A applications and services in which tech- launch of the collaborative platform G transformation impacts the nology will take a back seat in favour of Suite by Google Cloud, a new collabora- entire energy value chain, an unrivalled user experience: augment- tive Intranet, reZo, including a corporate ed reality, artificial intelligence, machine social network Workplace by Facebook. from production to customer learning, connected things, etc. relationships. In 2017, Teréga launched the development The restructuring of the Transfor- PRIORITY WAS of future IS solutions for its mation, Digital and Performance Department (DTDP) enables these natural gas transport and digital projects to be carried out GIVEN TO storage activities. Within this more quickly and more nimbly by THE DEVELOPMENT digital innovation initiative, ensuring resources are deployed the security, agility, availability in line with Teréga’s strategic pri- OF COLLABORATIVE orities. It enables the full potential and integrity of data are offered by advances in new tech- TOOLS. major areas of focus. nologies to be realised, with the development of specific applications dedicated to our core business and In 2018, Teréga faces two major challeng- the use of market standards for our busi- es to further enhance this operational ness support functions. fluidity: to improve the exchange and quality of data with customers and stake- Collaborative tools holders and to facilitate field operations In 2017, priority was given to the develop- by simplifying access to information and ment of collaborative tools that simplify by deploying the most suitable digital access to, and the exchange and secure equipment. cross-functional sharing of, information at workstations and in mobile settings,

44 STAR: A NEW BUSINESS PLATFORM

Teréga’s new cloud strategy is based on new-generation architectures and technologies. Launched in 2017, the first stage of its deployment involves building an agile new information system around its business activities. This is the STAR (Storage and Transport Application Redesign) programme. The new Web portal will be the most visible part of the programme. Comprehensively redesigned to improve customer experience using the very latest technologies, this interface will provide players in the gas market with access to the private and public information they need in a simple, ergonomic and highly secure format.

REZO: THE NEW “COLLABORATOR EXPERIENCE”

On 18 July 2017, Teréga launched reZo, a new internal information HACK IN ADOUR and collaboration platform that promotes the dissemination Since July 2017, Teréga has of information. This digital been a member of La Mêlée workplace enables individuals Adour, a network structure to collaborate in a fluid, supporting innovative local cross-functional environment. businesses in their use of digital It embodies the company’s work technology. Its working parties philosophy: collaborative, agile tasked with studying the matter and simple. In November 2017, and exchanging views with 170 people took part in this Teréga received the honorary players in the energy sector 48-hour-long innovation award for internal social and infrastructure suppliers will marathon, resulting in eight media tools from the COM-ENT help Teréga to develop its future projects. The initiative enabled (Communication & Entreprise, projects. As part of this, Teréga Teréga to exchange views with or Communication & Enterprise) contributed to the organisation local players in the energy association, which is composed of “Hack in Adour”, the first sector, to experiment with a of communication professionals, regional Hackathon aimed “massive” co-working initiative in recognition of the originality at designing and developing and to identify talented of its project. innovative solutions to respond individuals. One of these to the challenges of the energy individuals is now a member transition across the region. of our team!

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 45 GAS IS OUR ACCELERATOR OF THE FUTURE. WE ARE INVENTING ITS FUTURE APPLICATIONS TODAY AND ARE USING IT TO DRAW THE NEW HORIZON OF ENERGY.

GAS: ACCELERATING THE FUTURE GAS: A STRONG LINK IN THE ENERGY TRANSITION

The energy sector has been uch are the challenges of the of gas consumed nationally could be of undergoing major changes energy transition. The term “tran- renewable origin (biomethane, synthesis for several years. It faces a S sition” refers to changes in an gas and hydrogen), i.e. 90 TWh, provided energy system dominated by fossil fuels the necessary support mechanisms are number of unprecedented towards a decarbonised system consist- put in place. challenges: the drastic ent with the ambitions of the Paris Cli- reduction of greenhouse gas mate Agreement. How can the historical Conditions satisfied model, based on centralised and fossil Significant past investments mean that we emissions to combat global production, be linked to the model of the now have at our disposal a network of se- warming, the creation of future, based on renewable and diversi- cure, flexible gas infrastructures well inte- a single European energy fied energies from decentralised sources? grated into their environment and supply- market, an increasing Because of its characteristics, gas has an ing a large part of the country’s regions. important part to play in this transition, as These offer an unrivalled energy trans- number of players, increased the stable energy link between fluctuat- port and storage capacity and, therefore, regulation and digital ing production and consumption. major flexibility to cope with fluctuations transformation. in demand. An ambitious scenario In 2017, convinced of the role that gas and gas infrastructures need to play in meeting these significant challenges, Teréga teamed up with all the network operators to give a joint presentation at the Multi-Annual Energy Programme (PPE) workshops, setting out a scenario that goes further than the targets set by France’s Law on Energy Transition for Green Growth (LTECV) of August 2015. According to this scenario, by 2030 30%

48 OBJECTIVES OF THE 2015 LAW ON ENERGY TRANSITION FOR GREEN GROWTH (LTECV)

10% OF TOTAL GAS CONSUMPTION TO COME FROM RENEWABLE 32% GASES BY 2030 OF RENEWABLES ENERGY BY 2030

-40% REDUCTION IN GREENHOUSE GAS EMISSIONS COMPARED TO 1990

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 49 GAS: ACCELERATING THE FUTURE

CO₂ CAPTURE Networks and multi-energy at the the synergy between different sectors heart of the equation of activity in the same region. For exam- The energy transition should lead to ple, the use of green gases as alternative greater integration and complementarity fuels (bioNGV) secures the consumption of energies. In this approach, gas infra- of locally produced gas. CO₂ TRANSPORT structures are already capable of providing balancing services to electricity grids. Towards synthetic methane The transformation of gas and electrici- The transformation of the energy mix ty networks into integrated multi-energy is just one of the ways in which the more systems involves Power To Gas technolo- global challenge of managing green-

gy, which enables surpluses of renewable house gases and CO2 can be addressed. electrical energy to be converted into hy- Through the methanation reaction, gas CO₂ STORAGE drogen (electrolysis of water), which is it- can be used to recycle and recover CO2 self converted ultimately into natural gas – a process that offers a long-term solu- (methanation reaction). tion for the management of greenhouse STORAGE… AND In order to pre-empt this transformation, gas emissions. To pre-empt and effective- TRANSFORMATION Teréga is actively pursuing its investment ly appropriate these technological solu- Teréga is involved in an in the partnership around the Jupiter 1000 tions of the future, Teréga has launched active programme pilot project, which should lead to the a number of partnerships around this

of post-capture CO2 technical validation of the promise of technology, resulting in the production of transformation into methane Power to Gas technology and the hydro- synthetic methane from there combina- in order to demonstrate gen energy vector as solutions for the fu- tion of carbon dioxide and hydrogen. that it can go full circle. ture. This approach, involving a new syn- Forward-looking! ergy between existing energy models, will Clean mobility need to be accompanied by changes in Whether natural or renewable, gas allows the associated economic models, making in particular for the deployment of mobil- it one of the concurrent challenges of the ity solutions with low greenhouse gas and energy transition. particulate emissions. It offers a virtuous answer to global challenges, such as Storage of biomethane global warming, and to more local public To extend the storage po- health challenges. GAS AND GAS tential inherent to gas chain infrastructures and thereby Gas and gas infrastructures are key el- INFRASTRUCTURES support the development of ements of the ongoing energy transition, ARE KEY ELEMENTS renewable energies, and of lying at the heart of the challenges of biomethane in particular, in the future: greenhouse gas management, OF THE ONGOING 2017 Teréga, together with waste recycling, renewable energy pro- Storengy, authorised the duction, the circular economy and clean ENERGY TRANSITION. injection of first-generation mobility. biomethane into its underground storage facilities. This decision is the result of several years of research and analysis carried out in partnership. It represents an important milestone that confirms the compatibility of renewable energies with existing infrastructures. The injection of renewable gases from anaerobic digestion consolidates the circular economy dynamics based on

50 GAS: ACCELERATING THE FUTURE R&I: EXPLORING NEW AVENUES

50 EMPLOYEES DRAWN FROM R&I IN BRIEF ALL OF TERÉGA’S FUNCTIONS, COMMITTED TO MEETING NEEDS ON THE GROUND €4M INVESTED IN 2017

IMPACTS 2025 OVER 30 INNOVATION PLAN PROJECTS DEDICATED R&I will implement the new OVER 10 TO TRANSPORT IMPACTS 2025 Innovation PROJECTS ACTIVITIES Plan to adopt a vision and DEDICATED structure consistent with TO STORAGE the objectives of Teréga’s ACTIVITIES strategic plan. A cross- functional working group was set up in late 2017 to co- construct a roadmap around five objectives: hrough its Research and Inno- In addition to ensuring that innovations • to define a common vision vation (R&I) activities, Teréga is are effectively supervised and support- and ambitions within R&I; T developing new technological ed through to industrial maturity, it also • to restructure the major solutions to improve the operational contributes to the renewal of the project themes around the and environmental performance of the portfolio. business plan; company’s natural gas transport and To ensure success, R&I relies on part- • to identify and prioritise storage activities. Its teams are also fos- ners offering diverse and complemen- structural R&I projects; tering an innovation dynamic designed tary skills, while ensuring that only the • to define an effective to promote the company’s long-term best are chosen: universities, start-ups, communication strategy; strategy, with the focus on two major industrial companies, players in the • to identify resource topics of the future: the energy transi- gas sector, etc. Together, they conduct needs and determine the structure to be put in place. tion and digital transformation. joint research and collaborate closely Responsive to operational require- on projects, promoting the exchange ments, R&I seeks to develop solutions of different specialisms and territorial that have a practical application in appropriation. Through its approach to Teréga’s infrastructures and the servic- innovation, Teréga is ready to meet the es offered to customers. In recent years, energy challenges of the future, at the this strategy has led to the successful service of its local customers. completion of a number of projects that have served to create value for Teréga.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 51 GAS: ACCELERATING THE FUTURE

As a supporter of applicative research, Teréga promotes projects PROJECTS that are capable of being deployed at its facilities at the end of a DEDICATED development process lasting around three years. 2017 saw the launch and operational implementation TO ACHIEVING of a number of significant projects. ENERGY EXCELLENCE

52 New remote surveillance and Start of the construction of the Power to to enrich the biogas derived from anaer- maintenance technologies dedicated Gas Jupiter 1000 programme obic digestion and on the development to serving operations The construction of the Power to Gas of a programme of hydrogen production Teréga has laid the ground for trialling Jupiter 2017 demonstrator programme and instant conversion to methane from three pilot schemes on new augmented began in late 2017. Carried out in part- CO2 derived from other processes. reality technologies: assistance in lock- nership with GRTgaz, CNR, Port de Mar- out/tagout of the electrical substation seille-Fos, McPhy, Atmostat, Leroux & Development of a new system of radar of a compressor station, visualisation of Lotz, RTE and CEA Tech, this project will monitoring of storage cover underground networks and equipment serve to validate the hydrogen and syn- Regular monitoring of the cover of un- maintenance support. Alongside this, a thetic methane injection technologies in derground natural gas stocks is vital to digital system of pressure readings was the network. Teréga has harnessed its ensure their security and impermeability. developed to replace the obsolete man- expertise in industrial security to conduct Currently Teréga is continuously mon- ual readers and improve operational ef- the risk assessment of the injection station itoring the pressure of the cover using ficiency. After a year of testing on a de- and organise the analysis of facility risks. pressure gauges connected by cables, livery station, it is in the process of being Teréga has also put in place the provision in the monitoring wells, at depths of 300 rolled out to all priority stations. of gas analysis and CO2 compression to 500m. A new non-intrusive technique equipment. The facility is due to become based on radar waves provides an al- Use of fibre optics for the detection operational in late 2018. ternative to these costly measurement of leaks, undeclared works and ground systems. Developed in collaboration with movements near to works Launch of the RINGS (Recherche sur Antea Group, the new solution is based Teréga carried out a first campaign of l’Injection de Nouveaux Gaz dans les on the novel use of a traditional surface measurements along 48 km of pipeline Stockages de gaz naturel, or Research radar. using the promising technological solu- on the Injection of New Gases into tion developed by the Pau-based start- Natural Gas Storage Facilities) project up Febus Optics. Teréga is also involved Teréga is studying the behaviour of hydro- as principal sponsor in one of the projects gen and biomethane in deep aquifers to of the CITEPH (Consultation pour l’Inno- ensure their effective storage. Conducted vation Technologique dans les domaines in collaboration with UPPA (University of des énergies, or Consultation on Techno- Pau and Pays de l’Adour) and Storengy, logical Innovation in the Energy Fields) the research conducted on these “new programme alongside Total and Saipem. gases” will enable the identification of The aim of this project is to develop more contacts between the stored gas, the wa- efficient technology by combining and ter of the aquifer and the reservoir rock in optimising three types of measurements order to define their limit of acceptability in a single cable. in underground storage facilities.

Reducing greenhouse gas emissions Launch of two new methanation R&I tested four techniques for limiting projects decompressions and the emission of Teréga is contributing to the development greenhouse gases caused by pipeline of the hydrogen and biomethane sector maintenance work: recompression of by taking part in collaborative projects gas, flaring, reduction of pressure by lo- dedicated to methanation. This technol- cal consumption and use of a temporary ogy enables the production of synthetic connection. After trials and modelling, methane from hydrogen derived from Teréga developed a decision support surpluses of renewable electricity and tool that determines the emission reduc- CO2 from other processes, such as an- tion technique best suited to each type of aerobic digestion. Launched for a period works. of three years in partnership with start- ups, public R&D laboratories, universities and other industrial companies, the two projects focus on the construction of a demonstrator of biological methanation

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 53 INDICATORS INDICATORS FINANCIAL INDICATORS

REVENUE EVOLUTION

Teréga’s 2017 revenue amounted to €471m, compared to €467m €471 M in the 2016 financial year. TERÉGA’S 2017 REVENUE

REVENUE

Revenue for the Transport activity, amounting to €294m, activities was slightly lower than the 2016 revenue of €297m. This result is explained by the introduction of the ATRT6 tariff and, in particular, the lower rate of return on assets, €294 M compensated by the implementation TRANSPORT of the investments made. Revenue for the Storage activity, amounting €471 M to €177m* was up on 2016, when it amounted €177 M to €170m. This increase is explained by sales STORAGE growth and by an increase in subscriptions to the new “injection-racking” offer. * €186m, including intra-group sales from storage to transport.

INVESTMENT FIGURES

Totalling €152m, investments in transport €152 M activities in 2017 included development TRANSPORT investments, such as the Renforcement Gascogne Midi project, and investments €177 M in modernisation, safety and maintenance. €25 M Investments related to the Storage activity STORAGE amounted to €25m and were mostly investments in modernisation, safety and infrastructures.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 55 INDICATORS MARKET INDICATOR

136,274 GWH QUANTITY OF GAS 55 16 TRANSPORTED NUMBER NUMBER OF TRANSPORT OF STORAGE SHIPPERS SHIPPERS 33,112 GWH SUBSCRIBED STORAGE CAPACITY

100% TOTAL CONSUMPTION SUBSCRIBED STORAGE CAPACITY/AVAILABLE CAPACITY

23,417GWH FOR PUBLIC DISTRIBUTION

28,212GWH 4,795GWH FOR INDUSTRY

56 INDICATORS SAFETY INDICATOR

The actions taken by Teréga in the area of safety the zero lost-time accident frequency rate to 5.1, focus on the prevention of work site accidents and an increase compared to last year. the prevention of major accidents. These apply In terms of safety at our work sites, “high-potential” to both Teréga staff and the staff of Contractor events - i.e. potentially serious events - have been Companies (CC). the subject of surveys, in-depth analysis and shared The significant works activity in 2017 resulted in initiatives. This approach is a key factor of progress a 48% increase in the number of hours worked for reducing the level of risk of our activities. by contractor companies compared to 2016. In terms of third-party works, the actions taken over Proportional to the number of hours worked, the last five years have had a positive impact, the results bring the lost-time accident frequency with the number of Undeclared Works (UW) rate to 2.5, a decrease compared to 2016, and reducing by 50%.

2.5 +48% LTAFR OF HOURS WORKED FOR CONTRACTOR COMPANIES -50% IN THE LAST FIVE YEARS, UNDECLARED WORKS (UW) 1,700 BY THIRD PARTIES HAVE REDUCED DAYS WITH NO LOST-TIME ACCIDENTS AT THE LUSSAGNET STORAGE SITE 4 HIGH-POTENTIAL EVENTS

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 57 INDICATORS

SAFETY INDICATOR

RECORD OF LOST-TIME ACCIDENT FREQUENCY RATE (LTAFR) AND SEVERITY RATE (SR)

5 0,16

4,5 0,14 4 0,12 3,5

3 0,1

2,5 0,08

2 0,06 1,5 0,04 1 0,02 0,5

0 0 LTAFR 2012 2013 2014 2015 2016 2017 SR

TERÉGA+CC LTAFR TERÉGA LTAFR TERÉGA+CC SR TERÉGA SR

TRENDS IN UNDECLARED WORKS (UDW) AT A DISTANCE OF LESS THAN 5 METRES

The snagging of one of Teréga’s high-pressure pipelines in the commune of Bourriot-Bergonce (Landes) in February 2017 caused an unignited gas leak. The section was immediately secured and isolated by the Teréga teams. The incident resulted in no injuries, and its management by the operations teams, in collaboration with the emergency services, served to ensure that public distribution was not affected. The integrity of our facilities remains a priority requirement for everyone. 100 100

90 90 85 90 80 80 80

70 70 65 70

60 58 60 55 60 53 50 50 50 42 40 40 40 2015 2016 2017

30 Number of incidents of snagging 30 30 of Teréga infrastructures by third parties 2 1 1 20 20 20

10 10 10 2015 2016 2017

0 Number of work-related illnesses reported to the Social Security authority 0 3 0 0 2012 2013 2014 2015 2016 2017 0

58 INDICATORS ENVIRONMENT INDICATOR

Greenhouse gas

In 2017, greenhouse gas (GHG) emissions totalled GHG EMISSIONS (IN TCO2 EQ) 129,173 tCO2eq.* The focus of our teams on venting posts, particularly 250,000 during works, meant that we were able to maintain a strategy of optimisation and to reduce our GHG 200,000 emissions significantly during these operations. In this very positive context, it is important to note the negative impact on our environmental indicators of 150,000 snagging by a third party on the Bourriot-Bergonce (Landes) pipeline, as well as a significant incident affecting the main electric compressor at the 100,000 Sauveterre-de-Guyenne (Gironde) station. Following this incident, Teréga used emergency turbochargers to ensure an uninterrupted supply of gas and meet 50,000 our public service obligation. Both incidents contributed to ending the overall decrease in GHG emissions that had been achieved 0 since 2012. 2012 2013 2014 2015 2016 2017 The compressor stations in Mont (Pyrénées- TRANSPORTATION OF FLARING Atlantique), Barbaira (Aude) and Lussagnet (Landes) STAFF, BUILDING UTILITIES, FACILITIES: AERIAL SURVEILLANCE, are subject to the European Union Emissions Trading ELECTRICITY HEAVY MACHINERY Scheme (EU ETS). The emissions generated by these FACILITIES: ACCIDENTAL, VALVE NATURAL GAS stations in 2017 totalled 28,582 tCO eq. AND AU/DU EMISSIONS 2 COMBUSTION FUGITIVE EMISSIONS * To calculate GHG, Teréga uses a GWP (Global Warming Potential) VENTING for methane over 100 years of 34%, in compliance with the 5th report of the IPCC.

Energie

In late November 2015 2016 2017 2017, Teréga and EDF Total consumption by the company (in GWh) 315 292 322 signed an agreement for the supply of Energy consumed/energy transported 0.30% 0.28% 0.24% electricity produced Methane emissions/energy transported 0.05% 0.04% 0.03% from renewable Solar energy generated (Lussagnet, Cugnaux energy sources. and Volta buildings) (in kWh) 153,883 143,276 153,402

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 59 INDICATORS

ENVIRONMENT INDICATOR

Water

SLAMPING IN 2017, NO SOIL OPERATIONAL SITES POLLUTION WAS AND BUILDINGS DETECTED

7,657 M 3 QUANTITY OF WATER FROM DRINKING WATER DISTRIBUTION NETWORKS

3 3 3,782 M TERÉGA MANAGES 14,456 M QUANTITY OF UNDERGROUND FRESH WATER SAMPLED 198 HECTARES OF OFFSET SITES 3,017 M 3 QUANTITY OF SURFACE WATER SAMPLED (EXCLUSIVELY STORAGE)

DISCHARGES NUMBER OF SITES SUBJECT TO AN VOLUME OF PROCESS WATER ACOUSTIC STUDY: 2 DISCHARGED INTO THE NATURAL ENVIRONMENT AFTER WATER TREATMENT AT LUSSAGNET (IN M3 )

3,079m3 3 3,000 2,693m3 2,773m Waste

2,000 In 2017, the company generated 3,836 tonnes of waste.

2015 2016 2017 1,000 Quantity of waste generated (in tonnes) 4,664 1,943 3,881

% reused 61% 89% 76% 0 2015 2016 2017

Water treatment is subject to regular checks. Such management serves to ensure compliance with regulations before 59% releases into the natural environment. AMOUNT INCIN- ERATED WITH WASTE-TO-ENERGY 10.7% WASTE AMOUNT PROCESSED GENERATION Amount of provisions and guarantees for IN OTHER WAYS environmental risks TREATMENT The Lussagnet site will require a provision 17.2% of €350,087. In line with the schedule set AMOUNT RECYCLED by a prefectural order, 80% of this amount 7.9% OR REUSED has accrued since July 2017. AMOUNT INCINERATED WITHOUT WASTE-TO- ENERGY GENERATION 5.2% AMOUNT PROCESSED IN LANDFILLS

60 INDICATORS HUMAN RESOURCES

Employment 554 35 18 PERMANENT TEMPORARY INTERNS STAFF STAFF

1 SECONDED FROM SNAM (not included in our staff numbers).

CHANGES IN STAFF NUMBERS

The gender split is mostly explained by difficulties experienced in recruiting 33 29 TEMPORARY ENTRANTS PERMANENT women to fill operations positions. STAFF STAFF Among executives aged under 40, women represent 47% of the population.

589 600 576 579 100% 1 TERMINATION OF TRIAL PERIOD

2 RESIGNATIONS 450 75% 434 441 439

50% 300 32 14 RETIREMENT TEMPORARY LEAVERS STAFF AT END OF 25.5% CONTRACT 24.7% 23.8% TERMINATION 25% 1 150 BY MUTUAL AGREEMENT 142 138 150 2 DEATHS

0 0% 2015 2016 2017

MEN WOMEN Teréga practises a proactive recruitment policy favouring young people in work-study schemes, representing 3.45% TOTAL of the staff taken into account. 17% of women were recruited PERCENTAGE OF WOMEN in technical roles within the Operations Department.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 61 INDICATORS

HUMAN RESOURCES

STAFF AGE PYRAMID

60 YEARS AND OVER 18 55 / 59 YEARS 12 60 50 / 54 YEARS 14 63 45 / 49 YEARS 23 79 40 / 44 YEARS 32 51 35 / 39 YEARS 29 62 30 / 34 YEARS 27 59 25 / 29 YEARS 8 33 -25 YEARS 5 14 40 20 0 20 40 60 80

WOMEN MEN

DISTRIBUTION OF STAFF BY GEOGRAPHICAL LOCATION

PARIS 3

BORDEAUX REGION 46 LUSSAGNET 57 BILLÈRE 19

PAU 365 PAU REGION TOULOUSE REGION 50 49 Training

RATE OF ACCESS TO 19,802 5.17% TRAINING BY GENDER NUMBER OF TRAINING IN TRAINING COSTS WOMEN 99% HOURS IN 2017 OF WAGE BILL MEN 97% (I.E. 2,829 DAYS)

RATE OF ACCESS TO TRAINING BY SOCIO-PROFESSIONAL CATEGORY 575 OETAM* 100% NUMBER OF STAFF EXECUTIVE 95% WHO UNDERWENT TRAINING (98%). * Ouvriers, employés, techniciens et agents de maîtrise, or Operatives, Staff, Technicians and Supervisors.

62 INDICATORS

Absenteeism Wage bill

36,701 K€ 36,750 K€ 37,567 K€ 839 days MATERNITY LEAVE 2015 2016 2017 243 days 4,627 days 6,493 PATERNITY LEAVE SICKNESS DAYS 7 18 days OTHER ABSENCES 66 days WORK-RELATED ACCIDENT

Organisation of working time

2015 2016 2017

Annual working time (number of hours worked – temporary and permanent staff) 836,215 8 5 0 ,957 820,295

Number of part-time employees 16 19 17

Number of teleworking employees (1 day/week) 0 11 12

Industrial relations

NUMBER OF NUMBER OF MEETINGS REPRESENTATIVES HELD IN 2017

Works council 12 13

CHSCT (Comité d’Hygiène, de Sécurité et des Conditions de Travail, or Health, Safety and Working Conditions 11 10 Committee)

Staff Representatives 20 10*

* Based on the schedule agreed with Staff Representatives. 2 3 COLLECTIVE BARGAINING AMENDMENTS TO AGREEMENTS COLLECTIVE BARGAINING SIGNED IN 2017 AGREEMENTS SIGNED IN 2017 The professional agreements in the area of health and safety remain in force.

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 63 INDICATORS CSR STRATEGY To carry out a materiality analysis is to translate management of the company. Conducted internally exhaustively the social, societal and environmental for the first time in 2017, the materiality analysis issues that impact Teréga’s activities on a daily basis, has highlighted the areas of action for which the non-consideration of which could adversely consideration of these issues must be viewed as affect its success. Critical analysis of these issues being crucial, a priority or simply needing to be shows that they are now fully integrated in the strengthened.

CRUCIAL AREAS PRIORITY AREAS AREAS TO BE STRENGTHENED

Safety and integrity Relationships with of facilities Performance institutional actors and continuity of service Support through New applications change Relations with the shareholders of gas Security of facilities, Local individuals and data Customer relationship acceptance culture Reputation

Human rights Development IMPORTANCE TO TERÉGA TO IMPORTANCE Innovation of infrastructures Regulatory Quality of life compliance in the workplace Social dialogue

Management of GHG Business ethics

Diversity and equal Digitalisation opportunities of the company Biodiversity Respect for property rights

Water resource management

Community engagement Responsible purchasing

Energy efficiency

Governance Environment Social PERFORMANCE OF TERÉGA

Materiality analysis and definition of CSR strategy

These action areas are reflected in pre-empting future challenges. The business activities and its development the IMPACTS 2025 business plan, CSR policy is therefore not separate strategy. which establishes and defines Teréga’s from other policies. Teréga’s policy is environmental and socio-economic structured around “Our commitments”, In this first iteration, the method used priorities. which deal with all themes relating to for the materiality matrix was limited As such, there is no disparity between corporate social responsibility. Teréga to Teréga’s intrinsic perimeter. As the the company’s CSR commitments and draws no distinction between its global initiative matures, the method will the material challenges previously policy and its CSR commitments, taking become more participatory, and will identified. The role of the Environment- the view that all of the company’s ultimately include a number of external CSR Department is also to perform a commitments should contribute to stakeholders. monitoring role with the aim of the sustainable development of all its

64 INDICATORS

Correlation table

Regulatory reference L.225-102-1 of the French Commercial Code Correspondence

1. Social information:

a. Employment

Total workforce and distribution of staff Human Resource Indicators by gender, age and geographical area

Hirings and dismissals Human Resource Indicators

Pay and pay trends Human Resource Indicators

b. Work organisation

Organisation of working time Human Resource Indicators

Absenteeism Human Resource Indicators

c. Health and safety

“Zero accidents, zero snagging” Health and safety conditions in the workplace PARI 2025 Human prevention

Work-related accidents, particularly their frequency and seriousness, and work-related illnesses Safety indicators

d. Industrial relations

Organisation of social dialogue, particularly procedures relating to informing, Human Resource Indicators consulting and negotiating with staff

Assessment of collective bargaining agreements, particularly in health and safety Human Resource Indicators

e. Training

Training policies implemented, particularly in the area of environmental protection Box “A tailored training policy”

Total number of training hours Human Resource Indicators

f. Equal treatment

Teréga: working towards equality in the workplace and against Measures taken to promote gender equality all forms of discrimination

Teréga: working towards equality in the workplace and against Measures taken to promote the recruitment and integration of persons with disabilities all forms of discrimination

Teréga: working towards equality in the workplace and against Policy to combat discrimination all forms of discrimination

2. Environmental information

a. General environmental policy

Total commitment to the environment The organisation of the company to take into account environmental matters and, where relevant, environmental assessment or certification initiatives Teréga presentation (certifications)

Resources devoted to the prevention of environmental risks and pollution Total commitment to the environment

The amount of provisions and guarantees for environmental risks, provided such information Environmental indicators is not liable to cause serious prejudice to the company in an ongoing dispute

b. Pollution

Measures to prevent, reduce or repair releases into the air, water and soil with Total commitment to the environment a serious impact on the environment

Consideration of all forms of pollution specific to an activity, particularly noise and light pollution Total commitment to the environment

c. Circular economy

Prevention, recycling and reuse measures and measures relating to other forms Environmental indicators of enhancement and elimination of waste

Actions to combat food A responsible and sustainable Purchasing policy

d. Sustainable use of resources

Water use and supply according to local constraints Environmental indicators

Consumption of raw materials and measures taken to improve their efficient use RGM: towards a more fluid and homogeneous network – key figures

2017 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT 65 INDICATORS

Regulatory reference L.225-102-1 of the French Commercial Code Correspondence

Total commitment to the environment Energy consumption, measures taken to improve energy efficiency R&I: exploring new avenues and the use ofrenewable energies Environmental indicators

Total commitment to the environment Use of soils Environmental indicators

e. Climate change

Significant sources of greenhouse gas emissions generated from the company’s activities, particularly Environmental indicators as a result of the use of the goods and services it produces

Measures taken to adapt to the effects of climate change Total commitment to the environment

Mid- and long-term voluntary targets to reduce greenhouse gas emissions Total commitment to the environment and measures taken to achieve them

f. Protection of biodiversity: measures taken to preserve or restore biodiversity; Total commitment to the environment

3. Societal information

a. Societal commitments to promote sustainable development

Impact of the company’s activities on employment and local development A responsible and sustainable Purchasing policy

STEP: a European project in energy solidarity Impact of the company’s activities on local populations PARI 2025: targeting “Zero accidents, zero snagging”

Teréga bolsters its role and institutional image Relations with social stakeholders and arrangements for dialogue with them Teréga puts its customers at the heart of its strategy STEP: a European project in energy solidarity

Total commitment to the environment R&I: exploring new avenues Partnership or patronage initiatives Teréga is continuing with its sport sponsorship and cultural patronage activities Teréga: working towards equality in the workplace and against all forms of discrimination

b. Subcontracting and suppliers

Consideration of social and environmental matters in the purchasing policy A responsible and sustainable Purchasing policy

In supplier and subcontractor relationships, consideration of their Corporate A responsible and sustainable Purchasing policy Social Responsability (CSR)

Teréga sells services to business customers, not to consumers as defined in the c. Fair trade practices: measures taken to promote consumer health and safety French Consumer Code

d. Information relating to the fight against corruption: actions taken to prevent corruption Teréga presentation – Ethics Box

e. Information relating to actions to promote human rights

Promotion and respect of the provisions of the core conventions of the International Labour Organization (ILO), relating: - to respecting freedom of association and the right to collective bargaining; - to the elimination of discrimination in respect of employment and occupation; Teréga presentation – Ethics Box - to the elimination of forced or compulsory labour; - to the effective abolition of child labour. Other actions taken to promote human rights.

66 Teréga Communication and Institutional Relations department, June 2018. Director of the Publication: Dominique Boquillon. Editor in Chief: Céline Dallest. CSR projet managers: Laëtitia Mahenc, Head of Environmental and Corporate Responsability Division, Agnès Baillot, Environnement Engineer. Design and production: . Photo credits: Éric Traversié, Luc Hautecoeur, Jean-Michel Ducasse, Arnaud Domergue, iStock by Getty Images. Headquarter: 40, avenue de l’Europe • CS 20522 • 64010 Pau Cedex • France 8, rue de l’Hôtel de Ville • 92200 Neuilly-sur-Seine • France Tél. +33 (0)5 59 13 34 00 • @Teregacontact • www.terega.fr