The Hera Group Sustainability Report for 2011 contains figures for the three areas of responsibility: economic, social and environmental. Focus on commitments made, the results obtained and the outlook for the future. Contents Letter to stakeholders................................................................................................................................................ 4 The Report .................................................................................................................................................. 5 Reading this Report .................................................................................................................................................. 5 Drawing up this report .............................................................................................................................................. 7 About us .................................................................................................................................................... 11 Hera today............................................................................................................................................................... 11 History .................................................................................................................................................................... 11 Services managed ................................................................................................................................................... 12 The mission and values........................................................................................................................................... 13 Managing sustainability.......................................................................................................................................... 14 The instruments of governance............................................................................................................................... 22 Governing Corporate Social Responsibility............................................................................................................ 28 Dialogue with stakeholders...................................................................................................................... 36 Hera’s stakeholders................................................................................................................................................. 36 Main dialogue and consultation initiatives ............................................................................................................. 37 Dialogue on the Sustainability Report .................................................................................................................... 39 Results and Value added.......................................................................................................................... 41 Operating results..................................................................................................................................................... 41 Allocation of value added ....................................................................................................................................... 47 Workforce ................................................................................................................................................. 52 Objectives and performance ................................................................................................................................... 52 Breakdown.............................................................................................................................................................. 53 Turnover ................................................................................................................................................................. 57 Diversity and equal opportunities ........................................................................................................................... 59 Training and professional development.................................................................................................................. 63 Pay, salaries and bonuses........................................................................................................................................ 69 Health and safety .................................................................................................................................................... 73 Industrial relations .................................................................................................................................................. 78 Internal communication .......................................................................................................................................... 82 Recreational associations........................................................................................................................................ 84 The internal climate survey..................................................................................................................................... 85 Other dialogue and consultation initiatives............................................................................................................. 90 Customers ................................................................................................................................................. 92 Objectives and performance ................................................................................................................................... 92 Breakdown.............................................................................................................................................................. 93 Tariffs and billing ................................................................................................................................................... 96 Service quality ...................................................................................................................................................... 107 Quality of drinking water...................................................................................................................................... 112 Service safety and continuity................................................................................................................................ 116 Customer relations................................................................................................................................................ 122 Customer satisfaction survey ................................................................................................................................ 129 Other dialogue and consultation initiatives........................................................................................................... 132 Shareholders ........................................................................................................................................... 134 Objectives and performance ................................................................................................................................. 134 Breakdown............................................................................................................................................................ 134 Corporate Governance and safeguards for shareholders....................................................................................... 138 Distribution of dividends ...................................................................................................................................... 139 Stock exchange share performance....................................................................................................................... 140 Relations with investors and financial analysts..................................................................................................... 143 Financial Institutions ............................................................................................................................. 145 Suppliers.................................................................................................................................................. 148 Objectives and performance ................................................................................................................................. 148 Breakdown............................................................................................................................................................ 149 Operations within local communities.................................................................................................................... 151 Qualification and selection of suppliers................................................................................................................ 154 Contract management ........................................................................................................................................... 160 Supplier relations.................................................................................................................................................. 163 Public Administration...........................................................................................................................