1 Social and environmental management - 2018 Sustainability Report Social and environmental Corporate citizenship Corporate citizenship The social responsibility model of Grupo EPM promotes actions that are directly related to its role as public utility provider. Moreover, either directly or through Fundación EPM, it takes actions that meet the needs of the communities in the areas where it operates: social investment, programs, and contributions to public policies that are part of the concept of corporate citizenship. This way, it promotes, among communities, their development, inclusion in the urban dynamics, economic activities, and access to information and cultural, educational, social, job, and financial opportunities. 2 Related stakeholders Community Owner Government Partners Actions • Christmas lighting • Events and sponsorships • Fundación EPM • City projects GRI standards disclosures and EPM indicators 203-1 Infrastructure investments and services supported. 203-2 Significant indirect economic impacts. Scope and coverage Businesses Water Sanitation Electricity Gas Social and environmental management - 2018 Sustainability Report Social and environmental Territory Colombia - Antioquia Colombia - Caldas Colombia - Quindío Colombia - Risaralda Colombia - Santander Colombia - Norte de Santander Colombia - Malambo, Atlántico Chile Guatemala Panamá 3 Companies Empresas Públicas de Medellín - EPM Central Hidroeléctrica de Caldas - CHEC Electrificadora de Santander - ESSA Empresa de Energía del Quindío - EDEQ Centrales Eléctricas del Norte de Santander - CENS Empresas Varias de Medellín - Emvarias Aguas Regionales EPM Aguas Nacionales EPM Empresa de Aguas del Oriente Antioqueño Aguas de Malambo Aguas de Antofagasta - Adasa Empresa Eléctrica de Guatemala - Eegsa Elektra Noreste - ENSA Social and environmental management - 2018 Sustainability Report Social and environmental Christmas lighting Christmas lighting is an annual project run by Grupo EPM that contributes to the construction of a civic culture, the promotion of values, and the preservation of the community traditions, and allows families to get together and enjoy the city. Due to the Hidroituango contingency, the Christmas lighting for the city of Medellín was carried out with a lower budget but with the same coverage. Innovation was the focus, as new materials such as fiber optic and interlaced plastic fabric were also used, in order to replace the traditional metallic paper. 4 To give life to the 2018 Christmas lighting called “Colombia, magical paradise of lights at Christmas”, a team of 219 people, including professionals and artisans, worked throughout the year. Some of the main figures of EPM 2018 Christmas lighting include: 35,000 figures, 26 million LED bulbs, 11 tons of metallic paper, 158 tons of iron, 798 kilometers of rope light, 254 fiber posts, 64 moving structures, and 275 1000- watt projectors. Moreover, the 6th edition of the “Turn on the joy” contest was developed, and the following 14 municipalities were the winners in terms of design, construction, assembly, maintenance, and removal of the Christmas lighting: Arboletes, Belmira, Caracolí, Concordia, Cocorná, Copacabana, Frontino, Guatapé, San Vicente, Salgar, Santa Bárbara, Santa Fe de Antioquia, Santo Domingo, and Tarazá. Management in 2018 Grupo EPM emphasized the protection of natural resources as the theme of the Christmas lighting. It was a perfect opportunity to highlight the country’s richness and diversity of fauna and flora. The “Turn on the joy” contest brought together communities from different regions in Colombia to recreate their Christmas traditions. The increase in the coverage of the Christmas lighting in several municipalities is highlighted. As for the affiliates of Grupo EPM: CENS: in the 2018 “Turn on the joy” business strategy held by CENS, the municipalities of Chinácota, Santo Domingo de Silos, Cacota de Velasco, Los Patios, and Ragonvalia were the winners. Social and environmental management - 2018 Sustainability Report Social and environmental CHEC: the Christmas lighting in the city of Manizales and ten rural settlements included 1,416 flat figures and 234 volumetric figures. A total of 45 thousand meters of LED rope light, 8 thousand units of 8-meter mini LED light extensions, and 70 light projectors on trees all around the city were used. EDEQ: Its 2018 Christmas lighting called “Quindío, Christmas paths” was the company’s strategy to foster the environmental and tourism component of the region based on three lines of work: “Turn on the joy”, public lighting loyalty campaign, and support to tourism in the region. For the Christmas lighting and decoration of ten of the twelve municipalities in the department, 920 figures were installed, along with 450 thousand bulbs and 8 kilometers of LED rope light. In the “Turn on the joy” contest, the winning municipalities were Quimbaya, Filandia, and La Tebaida. 5 EPM Christmas lighting Indicator 2016 2017 2018 Direct jobs 310 286 219 Indirect jobs (street 350 350 350 peddlers) Beneficiaries 1,350 1,350 1,350 Investment (million COP) 12,000 15,000 10,000 Source: Vice Presidency of Power Transmission and Distribution. Christmas lighting - Energy affiliates of Grupo EPM Indicator 2016 2017 2018 Direct jobs 483 412 317 Indirect jobs (street 220 208 454 peddlers) Beneficiaries 1,973,169 2,010,627 1,942,143 Investment (million COP) 6,947 7,867 4,598 Source: Vice Presidency of Power Transmission and Distribution. GRI standards disclosures and EPM indicators 203-2 Significant indirect economic impacts. Scope and coverage Electricity management - 2018 Sustainability Report Social and environmental Territory Colombia - Antioquia Colombia - Caldas Colombia - Quindío Colombia - Norte de Santander Colombia - Santander Companies Empresas Públicas de Medellín - EPM 6 Central Hidroeléctrica de Caldas - CHEC Electrificadora de Santander - ESSA Empresa de Energía del Quindío - EDEQ Centrales Eléctricas del Norte de Santander - CENS Social and environmental management - 2018 Sustainability Report Social and environmental Events and sponsorships Grupo EPM develops and supports events and open advertising engagements that strategically aim at generating, supporting, and strengthening its relationships with the stakeholders, to seek the development of the regions where it operates and enhance the business group’s reputation. With a sense of social responsibility, local and regional initiatives having a positive impact on the community are supported by the organization. These initiatives address issues such as conservation of natural resources, technical issues to favor a sustainable culture, safe use of public utilities, and exploitation of recyclable materials, among others. They also contribute to the human, economic, cultural, social, and environmental development 7 processes of the territories where the Group’s companies operate. Management in 2018 Its participation in events and sponsorships allowed Grupo EPM to strengthen its relationship with the different stakeholders in 2018. Some of them include engagement in local and national events such as the Flowers Marathon, the Book and Culture Festival, and the Flowers’ Festival, and participation in city spaces that contribute to culture, such as engagement with the Museum of Antioquia, the Museum of Modern Art (abbreviated MAMM in Spanish), the Philharmonic Orchestra of Antioquia and the Explora Park, among others. In terms of events, the company developed activities for engagement with different stakeholders in the context of the Hidroituango contingency. Other events held with the community are also highlighted, including the United for Water program, the Buen Comienzo Festival, the “We are there for you” community encounters, and the visits of the World’s protector mission. Moreover, there were meeting spaces with the company’s suppliers and contractors, and besides participating in industry competitions, there was engagement in brand activation in commercial, cultural, environmental, and sports events such as Expoinmobiliaria, Let’s make music turn green, International Environmental Trade Fair, and UCI 2.1 Tour. Thanks to its innovative spirit in the use of renewable energies and sustainable mobility, EPM was the protagonist or participant in events such as Expo Solar, Innovate Yourself, CT+I Fair, and Mobility Fair. Social and environmental management - 2018 Sustainability Report Social and environmental EPM sponsorships Total number of 2016 2017 2018 sponsorships Local (only Medellín) 69 61 18 National 41 46 20 International 0 0 0 Source: Corporate Identity Management. 8 Investment in EPM sponsorships Contributions 2016 2017 2018 (million COP) Local (only Medellín) 7,153 4,022 2,371 National 3,187 3,867 4,835 International 0 0 0 Source: Corporate Identity Management. EPM events Number of events 2016 2017 2018 Commercial 145 111 27 Non-commercial 49 363 120 Source: Corporate Identity Management. Investment in EPM events Contributions 2016 2017 2018 (million COP) Commercial 1,635 706 147 Non-commercial 1,298 3,149 1,080 Source: Corporate Identity Management. As for the energy affiliates, CENS focused on supporting athletes from different disciplines such as gymnastics, rugby, and skating. Moreover, this affiliate allocated resources for different regional fairs, such as technology and construction fairs. CHEC engaged in the agenda of the Manizales Fair, and EDEQ supported the municipal festivities, mainly those related to sports and culture. As for ENSA, its participation in events such