abengoa bioenergy - csr 2014

Transcription

ABENGOA
BIOENERGY
The global biotech ethanol company
2014 annual report
Corporate social responsibility report
ABENGOA
BIOENERGY
page 2
CSR report 2014
Index
01 Letter from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
02 In this report
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
03 Innovative technology solutions for sustainable development . . . . . . . . . . . . . . . . . . . . . .14
04 Abengoa Bioenergy in figures
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
05 Main achievements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
06 Strategy for a sustainable future
07Environment
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
08 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
09People .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
91
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
95
10 External verification report .
11 GRI G4 content index .
63
ABENGOA
BIOENERGY
CSR report 2014
01
Letter from
the CEO
page 3
ABENGOA
BIOENERGY
page 4
CSR report 2014 | 01 Letter from the CEO
G4-1, G4-2
Last year was a record breaking year for Abengoa Bioenergy. As a global biofuels
leader, we continued to place diligent focus on new commercial scale plants,
geographical expansion, technological investments, implementation of these new
technologies, and the pursuit of future bioproducts- all while exceeding our financial
forecast and production goals. We did not let the uncertainties of the industry’s
current environment impact our success.
Despite the changing landscape and market uncertainties, Abengoa’s presence in key
geographical areas with high visibility has allowed us to address market shifts and
industry changes. Our agility and flexibility has allowed us to grow and be profitable
despite these obstacles.
As the year took shape, we embraced new horizons and challenges with a revised
business model. These efforts have and will continue to guide us as we strive to
achieve future milestones. We have introduced various changes in our organization,
initiated key projects, implemented new tools to improve knowledge management,
applied emerging ideas into our operations and created greater efficiencies. It has
all been possible thanks to the hard work, commitment and effort of the entire
organization
Another significant milestone of 2014 was the much anticipated opening of the
Hugoton plant in Kansas, USA, one of the world’s first, second-generation cellulosic
ethanol plants. The inception of this innovative facility, which produces ethanol
from biomass, dates back ten years when our enzymatic hydrolysis research and
development began. Ultimately, we will produce a total output of 25 Mgal per year
using the proprietary enzymes developed by this talented research team. Our success
is due in part to many community supporters, construction crews, engineering
team, among others with noteworthy recognition to the Department of Energy’s
loan guarantee program that has tremendously impacted our ability to bring this
monumental project to fruition.
Our vision for the future remains focused and we look forward with the firm
conviction that we will take our company, and our industry, to the next level. Both our
commitment to ongoing research and technology development are pivotal objectives
in our day to day business. Development of new technological processes, use of
innovative feedstocks and the creation of new bioproducts will open doors into new
markets, allowing us to diversify our revenue and continue to position ourselves as an
industry leader. We are confident that our initiatives will further the bioenergy market
into a cleaner, more sustainable tomorrow.
Abengoa Bioenergy has spent the last ten years developing innovative technology
within second-generation biofuels and other bioproducts, with the ultimate goal of
achieving better performance and sustainability to meet the demands of the market.
Technological development is the foundation upon which each of these projects has
been built and has been reinforced with our commitment to develop renewable fuels
that will ensure a safer and cleaner tomorrow.
In 2014 we identified new opportunities while continuing to further existing projects.
A disruptive, innovative product was brought to market with the introduction of
our, “waste to biofuels” (W2B) technology at Abengoa’s demonstration plant in
Salamanca, Spain. This technology will forever change the way cities live as we create
a way to efficiently manage municipal solid waste. Not only will we eliminate a
chronic problem urban areas face, we will be able to turn this negative material into
renewable energy. This project will afford us great opportunity to impact the way in
which future cities are built and the carbon footprint of its citizens.
Javier Garoz Neira
Abengoa Bioenergy CEO
ABENGOA
BIOENERGY
CSR report 2014
02
In this
report
page 5
ABENGOA
BIOENERGY
page 6
CSR report 2014 | 02 In this report
G4-24, G4-25, G4-26, G4-27
Guiding principles of this report
Abengoa Bioenergy has been publishing its Corporate Social
Responsibility Report (CSRR) every year since 2003. The report provides
information on the company’s main activities and their impact, as well
as the goals and challenges it faces. The 2014 CSRR has been drafted
according to the parameters set by the new G4 Guidelines drafted by
the Global Reporting Initiative (GRI). The material issues contained in this
report, as shown below, were previously identified by an appropriate
procedure implemented in Abengoa Bioenergy. Thus, Abengoa Bioenergy
follows the principles of inclusivity, materiality and responsiveness of
the AA1000 Accountability Principles Standard (2008) for sustainability
assurance:
›› Inclusivity: Abengoa identifies its stakeholders and considers them
in designing its sustainability strategy, making the firm commitment
of providing responsible solutions in all relevant aspects of its
activities having an impact on them. In addition to maintaining an
open and permanent communication with them, the organization,
by means of its annual report, the organization tries to provide
in-depth responses to all their expectations and concerns. The
company has put a strategic CSR plan in place (CSRSP 2020)
defining the framework and guidelines to be followed in the field
of sustainability through a series of actions aimed at integrating its
stakeholders’ expectations into its long-term organizational strategy.
Additional information on stakeholders and the permanently open
communication channels with them can be found in the “People”
section of this report.
›› Materiality: the information included in this report covers all
aspects and indicators that reflect significant social, environmental
and economic impacts of the organization and any other
that may have a substantial influence and when if omitted or
distorted may have an impact on the decisions and actions of the
stakeholders of the reporting organization. To determine them,
and taking into account the G4 materiality principle, an analysis
of all relevant aspects has been carried out, which is detailed in
the relevant section of this chapter. Hence, Abengoa Bioenergy
guarantees that it has included and assessed all truly relevant
issues in a comprehensive and balanced manner, i.e. including
both positive and negative information. To this end it holds every
year a committee meeting on relevant issues, which conducts and
internal assessment of any relevant issues considered as such by the
company’s external stakeholders.
›› Responsiveness: Abengoa Bioenergy has put in place several
resources and tools to respond to the concerns and aspects most
relevant to its stakeholders. The organization has tried to provide
in its annual corporate social responsibility report the information
requested by these stakeholders in the most appropriate and
accessible manner for the, as to allow them to make informed
decisions. As in the case of the two principles above, the
organization takes care that such response is provide
in a comprehensive and balanced manner.
Abengoa Bioenergy reports its progress in compliance with the ten
principles of the United Nations Global Compact, which govern the
actions, activity and strategy of the organization as shown in section four
of this report “Sustainable development strategy”.
Likewise, Abengoa Bioenergy’s corporate social responsibility
management system is based on the guidelines provided by the
ISO 26000:2010 Standard for social responsibility.
In line with its commitment to improve, the company keeps working to
develop this report by including new reporting frameworks adding quality
and new contents to the reported information. Such is the case with the
progressive inclusion of the topics defined by the International Integrated
Reporting Council (IIRC), the organization that produces the guidelines
for integrated reporting with the purpose of integrating financial and
non-financial information in corporate annual reports.
ABENGOA
BIOENERGY
page 7
G4-22, G4-23, G4-28, G4-29, G4-30
Scope of this report
This report covers the period between January 1st and December
31st, 2014. The report has been published every year since 2003 as an
independent and specific report of the Abengoa Bioenergy business
group. Previously, all the activities involving production and marketing
of biofuels and their coproducts had been included as part of Abengoa’s
activities in its annual report.
The full report comprises three volumes:
›› Volumen 1 - Activity report
›› Volumen 2 - Legal and economic/financial report
›› Volumen 3 - Corporate social responsibility report
Abengoa Bioenergy’s annual report covers the activities and projects of
all the companies in the business group, in the three geographical areas
where the company operates. As new projects are developed and markets
are opened up in new countries, usually involving the establishment of
new companies, the corresponding information will be included in the
relevant area of activity.
Abengoa Bioenergy’s corporate social responsibility report (CSRR)
includes, with its usual reliability, transparency and consistency,
information and the most relevant changes regarding social, economic
and environmental impacts of the company’s activities, as well as any
other aspects that may be relevant for its stakeholders. There is a special
focus on the progress made in 2014 and the challenges and objectives
for the next years, with the 2020 horizon marked by the current CSRSP.
In this report, Abengoa Bioenergy fulfills it’s commitment to transparency
and explains its performance in the regions of the world where it
operates: Europe (Spain, France and The Netherlands), Brazil and the
United States.
Data corresponding to previous years have been included in order to
allow for comparability of reported data and information. In some cases,
2012 and 2013 data have been recalculated due to changes in the G4
guidelines so that information can be compared with that of 2014. Unless
otherwise stated in the text, all performance indicators included in this
report cover the activities in 2014 of all Abengoa Bioenergy subsidiaries
with a significant social, environmental and economic impact in which the
organization holds effective management control.
Internally, all these management guidelines and recommendations have
been included in a series of internal standards that are mandatory for all
Abengoa Bioenergy employees without exception. They are as follows:
›› Corporate social responsibility standard (NOC 10/003)
›› Human resources standard (NOC 04)
›› Legal affairs, risk analysis and insurance management standard
(NOC 03)
›› Quality and environmental management standards (NOC 05)
›› Consolidation, audit and tax management standards
(NOC 08)
As a technological and responsible company committed to its social and
natural environment, Abengoa Bioenergy wants to know the impact
of its activities on the environment. Therefore, within the framework
of Abengoa’s environmental policy, the company started a greenhouse
gas (GHG) emission reporting system in 2008 and since then it has been
implementing an environmental sustainability indicator system. The
combination of both initiatives places Abengoa and Abengoa Bioenergy
in a position of world leader in sustainability management.
All information is provided according to the aforementioned standards
and principles, as well as the national law of the countries in which
the company operates. Reviewing their application, implementation
and development is a top priority for Abengoa. Therefore, internal and
external audits have been conducted to certify compliance with all the
processes, standards and procedures for internal operation and control in
place to ensure transparency.
ABENGOA
BIOENERGY
page 8
G4-5,G4-8, G4-17, G4-18, ,G4-19, G4-20, G4-21, G4-28, G4-29, G4-30, G4-31, G4-32, G4-48, G4-DMA
In 2014 there have not been any significant changes in Abengoa
Bioenergy’s consolidation perimeter compared to previous years.
For any question regarding the content or other topics related to
the Abengoa Bioenergy 2014 annual report, please contact the
communication representative of Abengoa at the following addresses:
Contact
Saint Louis (EE. UU.)
Madrid
Seville
16150 Main Circle Drive, Suite 300
Chesterfield, MO 63017 - 4689 USA
Telephone: +1 636 728 0508
Fax: +1 636 728 1148
Paseo de la Castellana, 31 - 3 Planta
28046 Madrid, Spain
Telephone: +34 91 319 70 70
Fax: +34 91 308 52 42
Campus Palmas Altas
Parcela ZE-3 Palmas Altas
41014 Seville, Spain
Telephone: +34 95 493 70 00
Fax: +34 95 493 7012
You can also contact us at Abengoa Bioenergy’s corporate e-mail address:
abengoabioenergy@abengoa.com
Reporting focus on materiality
In the identification of topics that are material for Abengoa, the company
has adopted the content requirements set forth in GRI’s G4 Guidelines
for the drafting of this report. The Guidelines define the materiality
process as the identification of important issues thus resulting in an
increased relevance of two variables: the company’s value chain and the
geographical areas in which it operates. In 2014, Abengoa has carried out
a materiality analysis which builds on that of previous years considering
both variables.
This definition of material information is a formal procedure followed by
the company in managing CSR, and that additionally allows it to identify
what information is relevant enough to be included in its CSRR, what
information should be disclosed in other formats (e.g. its website) and
what information is not relevant.
The process started by considering the relevant topics included in
the previous year. Then new topics identified during the external
review process, the study of the public information reported by other
competitors operating in the same sectors as Abengoa, and the
questions raised by Abengoa’s 1 independent expert panel on sustainable
development were added. In addition to identifying new topics, the
purpose of this process is to specify the efforts made in conducting a
more in-depth analysis of the topics already defined as relevant by the
company to cover prioritization from different perspectives and assuming
different variables, such as the links integrating its value chain and the
geographical areas in which the company operates.
Note 1See Abengoa’s 2014 Corporate Social Responsibility Report. Available in
Abengoa’s website.
ABENGOA
BIOENERGY
page 9
G4-12, G4-48, G4-DMA
Innovation
* Enzymes production
Suppliers
Production System
Customers and users
Biodiesel
›› Raw material traders
Oil
Global
Biofuel:
refineries, industrial companies,
service station
Production of biodiesel
from oil
Europe, USA, Brazil
Glycerin
›› Agreements with raw
material producers
›› Farm management
Brazil
Feed sales:
cooperatives and livestock, feed
manufacturers
France
Sugar cane
Production of bioethanol
from sugarcane
Sugar
Sugar sales:
sugar manufacturers
Brazil
Bioethanol
›› Equipment suppliers
›› Enzymes and yeast
suppliers
Cereals
from cereals
Bioproducts
(biobutanol...)
Biofuel:
service station
Bioproducts sales:
Europe, USA
laboratories, etc.
›› Other chemicals
suppliers
DGS
Feed sales:
cooperatives and livestock, feed
manufacturers
Institutional Entities
Biomass and waste
from waste and biomass
Global
Bioethanol
Biofuel:
service stations
Electric power
Heat
Gas natural
Value chain of Abengoa Bioenergy.
Cogeneration
Electricity sale
Grid circuit
ABENGOA
BIOENERGY
page 10
G4-19, G4-DMA, G4-48
The next step was classifying the topics that had been identified based on
their importance for an organization such as Abengoa (sector). Moreover,
a methodology was developed to allow for external and internal
prioritization of the list of previously identified topics.
External prioritization was performed by means of an analysis of the
information considered important by different influencers and opinion
formers, taking into account the impact of each topic on the decisionmaking process of the company’s stakeholders, analyzing investor
requirements, including environmental, social and governance aspects,
by assessing the reputational crises arising in 2014. In selecting the
influencers involved in the consultation process, the company has
considered the different sectors in which it operates. Altogether, Abengoa
has set the priorities based on 20 organizations. Additionally, it has
considered a number communication channels with its stakeholders
(including clients, investors, suppliers and local communities).
Internal prioritization was carried out in the meeting of the relevant
issues committee held every year in Abengoa Bioenergy. Representative
employees of the different non-financial management areas, considering
diversity criteria (in terms of responsibility level, geographical area and
gender), make up the committee. The relevant issues committee carried
out the assessment on the importance, in terms of impact on the
business, of each topic on the different links of the value chain.
The following table shows the topics considered, as well as the links of
the value chain on which each of them impacts.
Relevant topics
Value chain
links
Risk of corruption, bribery, fraudulent practices and
money laundering
4
Financing
3
Adaptation of the company to the environment in
which it operates
4
Innovation
2
Relations with Public Administration
2
Environmental impact of facilities and farming
operations
3
Human rights
3
Safety and health of company and
contractors’employees
3
Aracting and retaining internal talent
2
Working conditions: work-family life balance, equal
opportunities at work, professional development,
etc.
2
Climate change
4
Communication with local communities
2
Identification and control of raw materials
1
Efficiency in the use of resources
3
Product and service quality
4
ABENGOA
BIOENERGY
page 11
G4-21, G4-DMA, G4-33,G4-48
The diagram below shows the results obtained from internal and external
prioritization. This provides the basis for determining the topics on which
exhaustive information (focus) must be provided and those that must
be included in the CSRR (report). The size of the spheres indicates the
number of times that each topic impacts on the value chain.
100 %
Fo
rt
po
po
s
cu
Re
Re
rt
75 %
in
o
D
25 %
ts
External relevance
or
ep
rr
he
ot
50 %
t
or
ep
tr
no
0%
0%
25 %
50 %
internal relevance
75 %
100 %
Information quality assurance: external
verification
Acting as an independent external verifier, the firm PwC has reviewed
the report in order to verify the application of the AA1000 Assurance
Standard (2008) and Version 4 of the Global Reporting Initiative Guide
(GRI G4), according to the materiality report with a reasonable degree of
assurance for all principal and additional indicators reported. Sufficient
proof was obtained to reduce the risk of material errors to an acceptably
low level. The methodology followed for the review process was defined
according to the terms of the ISAE 3000 standard. The report was drafted
according to the G4 Reporting Guidelines issued by GRI, following
the “Comprehensive” option. The GRI content index of this report is
based on, and is in line with, the General Standard Disclosure G4-32, as
confirmed by the GRI Content index service. Moreover, the full report has
been reviewed by Abengoa’s management.
ABENGOA
BIOENERGY
page 12
G4-7
Information on dependent companies
Dependent companies of Abengoa Bioenergy are those in which it holds the power to govern the financial and operation policies in order to obtain
profits from their operations:
Dependent companies
Company name
AB Bioenergy France, S.A.
% of nominal
74.79
Company holding the share
Abengoa Bioenergía Inversiones, S.A.
AB Bioenergy Hannover GmbH
100.00
Abengoa Bioenergía, S.A.
Abengoa Bioenergía Agroindustria Ltda.
100.00
Abengoa Bioenergía Brasil, S.A./Abengoa Bioenergia Santa Fe, Ltda.
Abengoa Bioenergia Agroindustria Trading US Inc.
100.00
Abengoa Bioenergía Agroindústria Ltda.
Abengoa Bioenergia Biodiesel, S.A.
100.00
Abengoa Bioenergía Inversiones, S.A./Ecoagrícola, S.A.
99.99
ASA Bioenergy Holding, A.G./Abengoa Bioenergía, S.A.
Abengoa Bioenergía Brasil, S.A.
Abengoa Bioenergia Inovações, Ltda.
100.00
ASA Bioenergy Holding, A.G.
100.00
Abengoa Bioenergía, S.A./Abengoa Bioenergía Nuevas Tecnologías, S.A.
Abengoa Bioenergía Nuevas Tecnologías, S.A.
100.00
Abengoa Bioenergía, S.A./Instalaciones Inabensa, S.A.
Abengoa Bioenergy Operations, LLC.
100.00
Abengoa Bioenergía San Roque, S.A.
100.00
Abengoa Bioenergia Santa Fe, Ltda.
100.00
Abengoa Bioenergía Brasil, S.A./Abengoa Bioenergia Trading Brasil, Ltda.
Abengoa Bioenergia Trading Brasil, Ltda.
100.00
Abengoa Bioenergía Brasil, S.A./Abengoa Bioenergía Agroindustria Ltda.
98.05
Abengoa, S.A./Sociedad Inversora Energía y Medio Ambiente, S.A.
Abengoa Bioenergy Biomass Funding, LLC.
100.00
Abengoa Bioenergy Technology Holding, LLC.
Abengoa Bioenergy Company, LLC.
100.00
Abengoa Bioenergy Developments, LLC.
100.00
Abengoa Bioenergy US Holding, LLC.
Abengoa Bioenergy Engineering & Construction, LLC.
100.00
Abengoa Bioenergy Funding
100,00
Abengoa Bioenergy Meramec Renew able, LLC.
Abengoa Bioenergy Germany
100.00
Abengoa Bioenergy Holdco, Inc.
100.00
Abengoa Bioenergy US Holding, LLC./ASA Bioenergy Holding, A.G.
ABENGOA
BIOENERGY
page 13
G4-3, G4-7, G4-EC2
Dependent companies
Company name
% of nominal
Company holding the share
Abengoa Bioenergy Hybrid of Kansas, LLC.
100.00
Abengoa Bioenergy Investments, LLC.
100.00
Abengoa Bioenergy Maple, LLC.
100.00
Abengoa Bioenergy Funding, LLC.
Abengoa Bioenergy Meramec Renew able, Inc.
91.00
Abengoa Bioenergy Netherlands B.V.
100.00
Abengoa Bioenergy New Technologies, LLC.
100.00
Abengoa Bioenergy of Illinois, LLC.
100.00
Abengoa Bioenergy of Indiana, LLC.
100.00
Abengoa Bioenergy of Kansas, LLC.
100.00
100.00
Abengoa Bioenergy Renew able Pow er US, LLC.
100.00
100.00
Abengoa Bioenergy Trading Europe B.V.
100,00
Abengoa Bioenergy Trading US, LLC.
100.00
Abengoa Bioenergy UK Limited
100.00
100.00
Abengoa US, LLC.
Abengoa Biotechnology Research, S.A.
100.00
Abengoa Bioenergía Nuevas Tecnologías, S.A./Abengoa Research, S.A.
Advanced Feedstock of Kansas, LLC.
51.00
Abengoa Bioenergy Trading US, LLC.
ASA Bioenergy Holding, AG.
99.98
ASA Bioenergy of Nebraska, LLC.
100.00
Biocarburantes Castilla y León, S.A.
100.00
Bioetanol Galicia, S.A.
100.00
Ecoagrícola, S.A.
100.00
Abengoa Bioenergía Inversiones, S.A./Ecocarburantes, S.A.
Ecocarburantes Españoles, S.A.
SAS Abengoa Bioenergia Biomasse France
95.10
100.00
ABENGOA
BIOENERGY
CSR report 2014
03
Innovative
technology
solutions for
sustainable
development
page 14
ABENGOA
BIOENERGY
CSR report 2014 | 03 Innovative technology solutions for sustainable development
page 15
G4-3, G4-EC2
Innovative technology solutions
for sustainable development
Our society is facing major challenges such as the scarcity of natural
resources, an increasing energy demand and climate change. It is
estimated that the world’s population will reach 9.6 billion people in
2050, which among other things, will mean an unequal competition
in the access to limited resources such as water or fossil fuels and a
significant increase in waste production.
This change of paradigm is forcing organizations to adapt their business
models to other more sustainable ones that ensure the use of less
resources and a more efficient management of them by means of new
technologies that do not compromise the ability of future generations to
meet their own needs.
Abengoa Bioenergy is applying innovative technology solutions for the
sustainable development of the energy and environmental sectors, adding
value for its stakeholders by means of management processes based on
the promotion of entrepreneurship, social responsibility, transparency and
rigor.
Mission, vision and values of Abengoa
Bioenergy
Mission
›› Contribute to the development of the sustainable fuels market for
transportation and of chemical bioproducts by using renewable raw
materials and green technologies that help reduce GHG emissions
and environmental impact.
›› Develop innovative technological solutions through continuous
investment in R&D that provides more efficient production
processes, raw material diversification and new product
manufacturing.
›› Create shareholder value, focusing our activities on creating
profitable and sustainable technological solutions.
›› Contribute to the personal and professional development of our
employees through ongoing training by establishing and monitoring
customized development targets and plans.
Vision
›› Become one of the leading global companies in the production
and marketing of biofuels and chemical bioproducts made from
renewable raw materials.
›› Be acknowledged as a leading global company in research and
development and recognized for our technological innovation in
converting biomass into fermentable sugars, bioethanol, biodiesel,
kerosene for aviation, chemical bioproducts as well as adapting firstgeneration assets to diversify the product portfolio.
›› Provide an optimal work environment to attract the most skilled
employees and further their performance excellence.
›› Attract the attention of, and be respected by, the global financial
community as a result of sustained growth and technological
innovation.
Values
›› Honesty in our relationship with clients, shareholders, partners and
colleagues.
›› Respect for individuals under all circumstances.
›› Prioritization of teamwork using corporate tools to encourage
information exchange.
›› Promotion of a flexible, mental attitude in order to adapt to
continuous change.
›› Protection, defense and improvement of the environment.
ABENGOA
BIOENERGY
page 16
G4-4, G4-EC2, G4-EN28
Business model and activities
The company’s industrial operations focus on the development of new
technologies in the production of biofuels and bioproducts, ensuring
the sustainability of raw materials and of the processes implemented
to produce them. Moreover, it is also a service company providing
global solutions, with strong commodity marketing and management
capabilities through its trading units: Abengoa Bioenergy Trading Europe
and Abengoa Bioenergy United States.
In this way, Abengoa Bioenergy is adapting its business model towards
a more sustainable one ensuring less use of resources and their efficient
management through new technologies that do not compromise future
generations. This allows it to address the new global paradigm resulting
from scarce of natural resources, increasing energy demand and climate
change.
Abengoa Bioenergy carries out its activities dividing its structure into four
major areas:
›› a) Operation: This area focuses on the production of biodiesel,
first-generation bioethanol and DGS in the plants located in Europe
and the United States, in addition to the second-generation plant in
Hugoton, Kansas.
›› b) Business development: The area in charge of research in new
feedstocks and new products.
›› c) Brazil: The area managing production of sugar and firstgeneration bioethanol in the plants of Sao Luiz and Sao Joao.
›› d) Abengoa biotechnology: It is in charge of the development of
second-generation enzymes to be used in production plants.
Regarding the production of biofuels, Abengoa Bioenergy develops its
activities in two types:
›› Those known as first-generation biofuels or processes use intensive
crops such as cereal seeds or sugar cane. To produce these biofuels
it is necessary to complete a process ranging from growing these
crops and harvesting them to the ulterior industrial production
process to obtain biofuels.
›› In turn, the second-generation arises as an alternative solution to
intensive farming or feedstock scarcity. Second-generation biofuels
use as feedstock residues from the first-generation process, such as
the straw left on the fields after the harvest, or sugarcane residue
after processing, as well as municipal solid waste or similar waste.
In 2014, Abengoa Bioenergy was operating 14 first and secondgeneration biofuel production plants, and it produced a total of
1,700,915 m3 of ethanol and 103,474 m3 of biodiesel.
Innovative technology solutions
Abengoa Bioenergy contributes to sustainable development with the
marketing of sustainable biofuels and bioproducts focused on the
immediate substitution of its analogues from non-renewable resources,
such as fossil fuels and oil-derived products. All of the company’s
production activities are carried out within the framework of its respect
for the environment and its fight against climate change.
In addition to pursuing sustainability in the products it manufactures,
the company also pursues sustainability in feedstocks and production
processes, trying to reduce its environmental impacts and the emissions
of greenhouse gases from its activities.
Abengoa is responsible for all aspects of their business including the
environment, personal and professional development, and its employees.
The company provides ongoing training to them and it establishes and
monitors individualized plans. The basis for the success of this business
model rests fundamentally on its people, since the organizations’
presence in sectors requiring such high level of specialization makes
it essential to count on the best professional. Most of the projects are
managed and coordinated by in-house staff, capable of contributing their
experience and knowledge to achieve the organization’s goals.
ABENGOA
BIOENERGY
page 17
G4-4, G4-9, G4-EC2
R&D and innovation principles and structures in Abengoa
Bioenergy
Our products
Bioethanol
The development of innovative technological solutions means that a
continuous investment in research, development and innovation and a
substantial amount of resources is devoted to it. This, we can fulfil our
commitment of creating value for our shareholders.
The importance of R&D and the high level of specialization it requires
have led us to concentrate these activities in a specific company:
Abengoa Bioenergía Nuevas Tecnologías (ABNT) established in early
2003. The purpose of this company is to concentrate all R&D activities,
generating know-how and technology for the entire business group
that will later implement them in the production units across the
different geographic areas, leading to improved performance and better
adaptation to the sustainability and regulatory requirements to meet
demand. Abengoa Bioenergía Nuevas Tecnologías’ engineer and scientist
team in coordination with other R&D centers, universities and industrial
partners is developing innovative processes to increase ethanol yield
from grain, develop and optimize the technology for production of
second-generation ethanol and its coproducts, develop new added value
products and produce biofuels from urban solid waste.
In 2014 Abengoa Bioenergy invested 21.8 M€ in R&D&I, an amount that
accounts for 1.24 % of its total revenues, with 107 employees working
in R&D&I. Nine patent applications have been registered in 2014, with a
total of 64 patents registered between 2008 and 2014.
Acquisition on new knowledge, research and development of technology
are fundamental premises for the company to achieve the targets set
forth in its strategic plan.
Abengoa Bioenergy is a global reference in the production of both first
and second-generation bioethanol.
First-generation bioethanol is obtained from the fermentation of the
starch extracted using previous treatment from grain (wheat, corn,
barley). It is then concentrated by distillation to a level close to 96 %
purity and finally dehydrated to obtain bioethanol at almost 100 %
concentration. The latter is used for direct blending with gasoline (E85,
85 % ethanol and 15 % gasoline) or the production of ETBE.
In Abengoa Bioenergy Brazil, bioethanol is obtained from the
fermentation of the molasses produced during the sugar production
process from sugarcane or from the juice generated during sugarcane
harvesting. On the other hand, bagasse is separated and used as fuel for
energy production and the vinasse from the distillation process is used
as fertilizer in sugarcane plantations. The biofuel produced is used in
gasoline blends and the hydrated bioethanol as fuel for flexi-fuel cars.
Waste management has become a major problem in large cities all over
the world. Abengoa Bioenergy has developed a new municipal solid
waste (MSW) management model by means on enzymatic hydrolysis and
fermentation treatment, as well as the recycling of all useful materials
for reuse, achieving a minimization of the environmental footprint
and a reduction of dependency from fossil fuels by producing secondgeneration bioethanol. This can also be produced from agricultural waste
by means of a complex process to release the sugars present in cellulose
and hemicellulose.
ABENGOA
BIOENERGY
page 18
G4-4
As compared to fossil fuels the advantage of bioethanol is that it is of
renewable origin, it is biodegradable, it provides independency from oil
imports, its combustion reduces emissions of sulfur gases and particles,
it reduces GHG emission contributing to fighting climate change, and
furthermore, it contributes to the development of local economies
creating new jobs in rural areas.
compounds, such as sulfur oxides. It is therefore cleaner that diesel from
mineral oil, it is renewable and reduces dependency from fossil fuels.
This biodiesel can be used in any diesel engine and does not require any
adjustments in the engine.
DGS
All the bioethanol supplied by Abengoa Bioenergy to its clients in
Europe meets the strict sustainability criteria established by the European
directives. This is verified by means of several certification schemes,
among them its own scheme approved by the European Commission.
This scheme, called RBSA (RED Bioenergy Sustainability Assurance)
guarantees the sustainability of the entire product marketed by Abengoa
Bioenergy in Europe. Likewise, the bioethanol supplied by the company to
its clients in the United States and Brazil meets the specific sustainability
standards of these countries.
E85
E85 is a fuel blend made up of 85 % bioethanol and 15 % gasoline.
Although its Lower Heating Value (LHV) is smaller, it has got a higher
octane index thanks to its ethanol content and therefore it increases
engine performance. Moreover, it reduces greenhouse gas emissions and
fuel consumption. Since ethanol can be blended with gasoline at almost
any rate, blending logistics are quite simple. This fuel does not work in
cars provided with standard gasoline engines and therefore it only can
be used in vehicles with specifically designed engines, known as flexifuel vehicles (FFV), which can run on any ethanol-gasoline blend. This
technology is currently offered by a majority of automobile manufacturers
in Brazil and North America.
Biodiesel
Biodiesel is a biofuel obtained from the reaction of methanol with fatty
acids from vegetable oils, such as rapeseed, sunflower, soybean or palm
oil. The result of this reaction is a fuel made up by methyl or ethyl esters
that does not contain any sulfur and reduces the emissions of greenhouse
gases, carbon monoxide, particulate matter (PM) and other polluting
DGS (distiller’s grains with solubles) is the coproduct resulting from the
production of bioethanol by grain fermentation.
This coproduct has got a high protein, energy, fiber and vegetal vitamin
content and therefore, its main use is its incorporation into animal feed.
Since it is introduced into the food chain, strict quality controls have been
established to ensure its nutritional properties and food safety, always in
compliance with all applicable legislation.
.
ABENGOA
BIOENERGY
page 19
G4-4, G4-9, G4-19, G4-EN28
Sugar
Electricity
Abengoa Bioenergy Brasil obtains sugar from sugarcane grinding. The
juice is separated from bagasse, which is used as fuel for electricity
generation, and then it undergoes filtration, neutralization, evaporation
and crystallization processes. It is finally centrifuged to obtain solid-state
sugar. The product obtained in Brazil is exported or sold in the domestic
market.
In its processing plants in Spain, the company produces electricity using
natural gas turbines for self-supply and the surplus is exported to the
grid. Hot gases resulting from cogeneration are used to produce steam
and dry DGS increasing overall energy performance. This cogeneration
process is also in place on the plant located in the Netherlands.
In turn, Abengoa Bioenergy Brasil generates the electricity and steam
used in the processing plants by combustion of the bagasse separated
from the juice in the production of sugar from sugarcane.
Carbon dioxide
Carbon dioxide is a greenhouse gas generated during the fermentation
process to produce bioethanol. This gas is captured and sold to gas
companies who use it in the industry or in greenhouses.
In the US, CO2 is captured in the York (Nebraska) facility. It is sold to
beverage and frozen food companies. The Netherlands facility supplies
CO2 to greenhouses near the plant. In France, the Abengoa Bioenergy
France plant in Lacq supplies the carbon dioxide it produces for multiple
applications (beverage carbonation, cooling and freezing), thus replacing
CO2 from petrochemical units. This plant captured 45,253 tons of CO2
in 2014. Likewise, Biocarburantes de Castilla y León (Spain) has started
capturing the CO2 from fermentation reaching a total of 14,000 tons.
Sugarcane plantation.
ABENGOA
BIOENERGY
page 20
G4-20
Innovation for sustainable development
›› Industrial-scale production of 2G enzymes for both straw and
W2B.
›› Development of new technologies; use of MSW.
›› Development of proprietary enzymes.
In order to solve waste management problems and to produce clean
biofuels, Abengoa Bioenergy has developed a solution that achieves an
efficient management of the organic fraction of urban solid waste and
the sustainable production of energy by means of the waste to biofuels
(W2B) technology.
The goal of the waste-to-biofuels project is to develop an integrated
solution for municipal solid waste (MSW) management that allows the
conversion of the organic fraction of the MSW into biofuels and energy
and provides a more sustainable and efficient alternative to traditional
waste disposal, by landfill. The W2B project framework comprises
all R&D&I stages, from lab research to improve and optimize biofuel
pretreatment and conversion processes, to validating pre-industrial scale
technology and ultimately integrated commercial plant design.
The W2B technology decreases landfill management time, which
minimizes the environmental footprint in the treatment of waste per Km
travelled by 70 % (thus reducing significantly particle and greenhouse
gas emissions). Moreover, it maximizes recovery of the organic fraction of
urban solid waste and prevents the discharge into landfills of more than
80 % of waste.
Application of the W2B technology to the more than 24 Mt of USW
produced in Spain every year would lead to the production of 2,100 ML
of bioethanol, which would replace the use of 1,900 ML of gasoline,
31 % of the total amount consumed in Spain.
Conversion of waste into bioethanol is an innovative way to valorize
waste providing benefits to all. Therefore, the W2B technology brings
together technological innovation and social responsibility
.
Abengoa Bioenergy has a license from Dyadic for the use and
modification of an organism that produces enzymes, which converts
cellulose into sugars; a critical and necessary step in enzymatic hydrolysis
technology.
Abengoa Bioenergy has a highly qualified team of engineers, chemists
and biochemists who are working to further develop this technology
by tackling the adaptation of the organism for the production of an
optimum enzymatic cocktail, and the fermentation process necessary
in its industrial procurement. The York, Nebraska pilot facility and
Biocarburantes Castilla y León demonstration plant are critical for the
development of enzymes and allow Abengoa Bioenergy to have a global
test base. Currently, our enzyme cocktail presents a saccharification
power similar to other commercial solutions in the market. However,
Abengoa Bioenergy continues to work on improving this cocktail and
its production at commercial-scale, in order to guarantee an efficient
and consistent supply of enzymes for operations at our Hugoton plant.
This enzyme cocktail is under development to be used in other 2G
applications, such as the production of biofuels from MSW or from
sugarcane residues. Abengoa Bioenergy has developed this solution,
alongside our enzymatic hydrolysis technology, to be used in our facilities
and in third-party plants for the production of bioethanol.
›› Research with corn stover proves that it does not have any
food value.
Years ago, Abengoa Bioenergy started its research in the field of second
generation biofuels. It focused its research on corn stover, which was left
behind in the fields after the corn harvest and did not add any value to
ABENGOA
BIOENERGY
page 21
G4-8, G4-13
the process. Studying this feedstock showed that it could be a source of
lignocellulosic biomass, which, after pre-conditioning and processing,
could be turned into biofuel. Moreover, this solution would dissociate
biofuel production costs from grain rice fluctuations and could settle the
fuel vs. food controversy which blamed biofuels for grain and food price
increases, as they were used as feedstock..
›› In addition to the fundamental role the plant plays in demonstrating
the commercial feasibility of cellulosic ethanol, its success provides
us with a platform for the future development of other bioproducts
reducing the use of oil, such as bioplastics, biochemical and jet-fuel.
Main projects in 2014
The most relevant projects of the company in 2014 were the following:
›› Hugoton, Kansas plant: On October 17, 2014, Abengoa
Bioenergy celebrated the official opening of the second-generation
cellulosic ethanol production plant in Hugoton, Kansas some 90
Km southwest of Dodge City. The new industry-leading biofuels
plant, developed by Abengoa, was completed in late August and
started producing cellulosic ethanol at the end of September, with
a production capacity of up to 25 million gallons per year. The plant
produces ethanol using only second-generation (2G) biomass as
feedstock, i.e. non-edible agricultural residues such as stems and
leaves, which do not compete with grain for food. The state-of-theart facilities also include an electric energy cogeneration plant that
allows it to operate as a self-sufficient renewable energy producer. It
uses residual biomass solids from the ethanol conversion process to
generate up to 21 megawatts (MW) of electricity; an amount that
is enough to meet its electricity demand and export the clean and
renewable energy surplus to the local community in Stevens County.
The commissioning of the Hugoton plant marks the first commercial
operation of the enzymatic hydrolysis technology patented by
Abengoa, which transforms biomass into fermentable sugars
which are then converted in ethanol. Hugoton is one of the first
commercial-scale plants in the country and is a showcase of the
current momentum of the cellulosic ethanol industry as a source of
alternative sustainable fuel, significantly reducing greenhouse gas
emissions and increasing energy independence.
Hugoton, Kansas plant, USA.
ABENGOA
BIOENERGY
page 22
G4-8, G4-13
›› Municipal solid waste treatment plant for the generation of
biofuels: The waste to biofuels (W2B) technology demonstration
plant located in Salamanca has been operating since 2013. It can
process 25,000 tons of municipal solid waste (MSW) and produce
up to 1.5 ML of second-generation bioethanol per year, by means of
an enzymatic hydrolysis and fermentation process.
›› Agreements with local governments for the sale of W2B plants
and technology: The W2B project originated as a solution to the
steady population growth and the increasing per-capita production
of municipal solid waste. Therefore, this solution is presented to the
different municipalities interested in implementing a sustainable
and environmental-friendly MSW treatment, far away of the current
incineration or landfill disposal options. To this end Abengoa
Bioenergy is working together with interested municipalities providing
them with information on our technology package and how our
end-to-end W2B solution can solve their waste concerns. Offers have
already been submitted to US cities, and information packages have
been sent to other cities all over the world such as Abu Dhabi, Korea
and Toronto. On an international level, Abengoa has raised interest in
municipalities of Barcelona, Seville and Murcia.
Municipal solid waste treatment
plant for generation of biofuels.
›› CO2 capture by Linde, in the Biocarburantes de Castilla y
León facilities: In 2002, Abengoa signed an agreement with
Linde for the capture of CO2 from the fermentation process at the
Biocarburantes de Castilla y León facility. This project includes the
capture and liquefaction of the CO2 produced during the sugar
fermentation process in the production of ethanol; it was tested in
September and October 2014 and it was finally commissioned in
November. The CO2 capture facilities have a total capacity of 64,000
tons per year, which accounts for 40 % of the total emissions into
the atmosphere of Abengoa Bioenergy’s plant in Babilafuente,
Salamanca (161,621 tons of CO2 expected for 2014).
ABENGOA
BIOENERGY
page 23
G4-6, G4-8, G4-LA2, G4-SO2
Global presence map
Abengoa Bioenergy is the leading European biofuel producer (with a production capacity of 396 Mgal) and one of the main producers in the United
States (380 Mgal) and Brazil (67 Mgal), with a total installed production capacity of 782 Mgal distributed among 14 plants across five different countries
and three continents. This past year was a banner year for Abengoa as we commissioned one of the world’s first commercial-scale second-generation
cellulosic plants in Hugoton, Kansas (USA). This plant will have the capacity to produce up to 25 Mgal per year of bioethanol from corn stover, wheat
straw, and switch grass, along with up to 21 MW of electricity. Surplus electricity will be sold back to the local power grid.
In 2014, Abengoa Bioenergy continued to create value for its shareholders. The company identified opportunities that will allow for diversification of
bioproducts and the production of higher value-added biofuels and compounds, thus generating new alternative fuel sources and creating greater
environmental benefits.
France
Netherlands
Spain
USA
Brazil
ABENGOA
BIOENERGY
page 24
G4-6, G4-8, G4-SO2
Annex A:
geographical areas where Abengoa Bioenergy operates
Europe
››
››
››
››
››
››
››
››
››
Brazil
Biocarburantes de Castilla y León, S.A.
Bioetanol Galicia, S.A.
Ecoagrícola, S.A.
Ecocarburantes Españoles, S.A.
Abengoa Bioenergía Biodiésel S.A.
Abengoa Bioenergía Nuevas Tecnologías, S.A.
Abengoa Bioenergía San Roque, S.A.
››
››
››
››
››
››
››
››
Abengoa Bioenergy France, S.A.
Abengoa Bioenergy Germany GmbH.
Abengoa Bioenergy Hannover GmbH.
Abengoa Bioenergy Netherlands, B.V.
Abengoa Bioenergy Trading Europe, B.V.
Abengoa Bioenergy UK Limited.
Asa Bioenergy Holding, AG.
SAS Abengoa Bioenergía Biomasse France.
Abengoa Bioenergía Agroindustria Trading US Inc.
Abengoa Bioenergy Biomass of Kansas, LLC
Abengoa Bioenergy Biomass Funding, LLC
Abengoa Bioenergy Company, LLC
Abengoa Bioenergy Developments, LLC
Abengoa Bioenergy Engineering & Construction, LLC
Abengoa Bioenergy Funding, LLC
Abengoa Bioenergy Hybrid of Kansas, LLC
Abengoa Bioenergy of Illinois, LLC
Abengoa Bioenergy of Indiana, LLC
Abengoa Bioenergy Investments, LLC
Abengoa Bioenergy of Kansas, LLC
Abengoa Bioenergy Maple, LLC
Abengoa Bioenergy Meramec Holding, Inc.
››
››
››
››
››
››
››
››
››
››
››
››
››
››
Abengoa Bioenergy Meramec Renewable, Inc.
Abengoa Bioenergy of Nebraska, LLC
Abengoa Bioenergy New Technologies, LLC
Abengoa Bioenergy Operations, LLC
Abengoa Bioenergy Outsourcing, LLC
Abengoa Bioenergy Renewable Power US, LLC
Abengoa Bioenergy Technology Holding, LLC
Abengoa Bioenergy of Texas, LLC
Abengoa Bioenergy Trading US, LLC
Abengoa Bioenergy US Holding, LLC
Abengoa Biotechnology, LLC
Advanced Feedstocks of Kansas, LLC
SAS Abengoa Bioenergía Biomasse France.
USA
››
››
››
››
››
››
››
››
››
››
››
››
››
››
››
››
››
››
››
Abengoa Bioenergía Agroindustria Ltda.
Abengoa Bioenergía Brasil S.A.
Abengoa Bioenergía Inovaçoes Ltda.
Abengoa Bioenergía Santa Fe Ltda.
Abengoa Bioenergía Trading Brasil Ltda.
ABENGOA
BIOENERGY
page 25
G4-6, G4-8
Annex B:
nominal production capacity
Ecocarburantes Españoles
Bioetanol Galicia
Biocarburantes de Castilla y León
Planta de Biomasa Lignocelulósica
Abengoa Bioenergía San Roque
(1)
Abengoa Bioenergía France
Abengoa Bioenergy Netherlands
Abengoa Bioenergy Corporation Colwich
Abengoa Bioenergy Corporation Portales
Bioethanol:
210 ML
DGS:
145,000 t
Bioethanol:
340 ML
DGS:
230,000 t
Bioethanol:
340 ML
DGS:
230,000 t
Bioethanol:
95 ML
Bioethanol:
340 ML
204,000 MWh
DGS:
230,000 t
Bioethanol:
5 ML
Bioethanol:
110 ML
Biodiesel:
225 ML
Sugar:
365,000 t
Glycerin:
18,500 t
Electricity:
172,000 MWh
Bioethanol:
250 ML
Bioethanol:
145 ML
DGS:
145,000 t
Sugar:
305,000 t
Bioethanol:
480 ML
Electricity:
201,500 MWh
DGS:
360,000 t
Bioethanol:
3.2 BL
Electricity:
375,000 MWh
Biodiesel:
225 ML
Bioethanol:
95 ML
DGS:
1,820,000 t
DGS:
70,000 t
Sugar:
670,000 t
Bioethanol:
115 ML
Glycerin:
18,500 t
DGS:
75,000 t
Electricity:
1,336,500 MWh
Bioethanol:
150 ML
DGS:
75,000 t
Electricity:
180,000 MWh
Bioethanol:
195 ML
DGS:
110,000 t
Electricity:
204,000 MWh
Bioethanol:
200 ML
DGS:
150,000 t
Electricity:
(1) Plant located in the Biocarburantes de Castilla y León facilities and managed by Abengoa Bioenergía Nuevas Tecnologías.
Abengoa Corporation York
Abengoa Bioenergy of Nebraska
Abengoa Bioenergy Illinois
Abengoa Bioenergy Biomass of Kansas
Abengoa Bioenergy of Indiana
Abengoa Bioenergía Brasil São Luiz
Abengoa Bioenergía Brasil São João
Abengoa Bioenergy
ABENGOA
BIOENERGY
G4-13
Annex C:
changes in size, structure and ownership
in 2014
For a comprehensive list of companies, please see section “Information
on dependent companies”. There have not been any changes in size,
structure and ownership in 2014.
page 26
ABENGOA
BIOENERGY
CSR report 2014
04
Abengoa
Bioenergy in
figures
page 27
ABENGOA
BIOENERGY
page 28
CSR report 2014 | 04 Abengoa Bioenergy in figures
G4-9
Economic dimension
2,137 M€
2,029
2,138
2014
2013
2012
Revenues
Revenues have remained fairly stable with figures comparable to those of
the previous year overcoming operational difficulties.
(1M = 1,000,000)
271 M€
241
EBITDA
91
Thanks to our product and feedstock diversification, as well as to proper
management of productive assets, Abengoa Bioenergy has managed
to obtain an EBITDA EBITDA 1 of more than 271 M€ in spite of adverse
economic and market conditions.
Note 12014 EBITDA corresponding to the consolidated industrial activity of 2014.
2014
2013
2012
ABENGOA
BIOENERGY
page 29
G4-EC7, G4-EN18
Technological investment
276 M€
Abengoa Bioenergy is making strong progress in the marketing of
cellulosic ethanol and continues to bet on the development of new
technologies along with the U.S. Department of Energy, the Spanish
Ministry of Industry and the European Union Framework Program. In
2014 investments reached 276 M€, a substantial increase over the
previous year.
207
192
2014
2013
2012
4.29
4.40
2013
2012
4.791 Mt CO2 eq
Environmental dimension
Reduction of GHG emissions
The use of the 476.72 Mgal of biofuel marketed by Abengoa Bioenergy
has led to a reduction in greenhouse gas emissions of around 4.791 Mt
of CO2 equivalent compared to the reference fossil fuel.
(1 Mgal = 1 million gallons)
(1 Mt = 1 million tons)
Source:
1. Directive of the European Parliament and the Council on the promotion of the use of energy
from renewable sources.
2014
ABENGOA
BIOENERGY
page 30
G4-EN28
Production of biofuels
782 Mgal/ y = 2,960 ML/ y
728
665,6
623
Abengoa Bioenergy currently has fourteen bioethanol and biodiesel
production plants, distributed between Europe (Spain, France and
Holland), United States and Brazil. In 2014, the company’s production of
biofuels reached an historical record of 782 Mgal.
2014
2013
1,579 GWh
1,472
2012
2011
1,548
1,236
Production of electricity
Several of the company’s bioethanol production facilities have
cogeneration systems, which with sugarcane bagasse and other fuels,
generates the steam and electricity necessary to operate the bioethanol
plants. The production of electrical energy in 2014 was estimated at
1,579 GWh.
2014
2013
2012
2011
ABENGOA
BIOENERGY
G4-LA1, G4-LA9
Social dimension
2014
Average no. of training hours
per person
82.66
Total no. of employees
4,465
Investment in community
engagement (€) (1)
92,933
The number of employees has decreased by 7 % over 2014.
(1) The figure of investment in community engagement has been calculated for 2014 by means
of the proprietary tool of the London Benchmarking Group (LBG) methodology.
page 31
ABENGOA
BIOENERGY
CSR report 2014
05
Main
achievements
page 32
ABENGOA
BIOENERGY
CSR report 2014 | 05 Main achievements
page 33
G4-14
Main achievements
2014 has been a year of challenges for Abengoa Bioenergy in the United
States, Europe and Brazil. Each of the three geographies have brought
their own unique dynamics; the United States managed better margins
than European operations, while Brazilian sugar prices were less desirable
than in the past. However, the company’s risk management systems were
successful in its efforts, and helped make 2014 profitable.
Europe
2014 European operational milestones:
›› Direct blending of ethanol with petrol begins in Spain
›› Increased sales of DGS in global markets
›› Improved sales of high blend ethanol (E10) in Europe (France,
Germany and Finland)
›› Delivery of 100 % bioethanol to customers
›› Organization of the XIII World Biofuels conference
›› Exportation of 68 Mgal of ethanol to markets in Africa, Middle East
and Asia
›› Began commercialization of corn dust as animal feed
›› Started construction of a corn oil facility in Abengoa Bioenergy
France
United States
The United States regulations on ethanol blend levels remain uncertain,
but Abengoa Bioenergy was able to fulfill market needs. During 2014,
the company achieved the following:
›› Commissioned Abengoa Bioenergy’s first second-generation
commercial-scale ethanol plant in Hugoton, Kansas
›› Successfully produced electricity from biomass at Abengoa
Bioenergy’s Hugoton, Kansas plant and sold excess power to the
local Stevens County grid
›› Successfully produced and marketed industrial grade ethanol at the
York, Nebraska facility for sale in Asian markets
›› Renegotiated more favorable credit and payment terms with key
grain supplier-partners
›› Successfully sold receivables on the NYSE’s Receivables Exchange
(TRE) as an alternative to factoring
›› Optimized barge traffic on the Mississippi and Ohio Rivers, in order
to increase export activity of both ethanol and DGS (Distillers Grains
with Solubles)
›› Factored 100 % all sales
›› Renewed ISO 9001, ISO 14001 and OHSA 18001 certifications for
all US companies
›› Continuation of the RBSA program at Abengoa Bioenergy Company
York, Abengoa Bionergy of Indiana and Abengoa Bioenergy of
Illinois to facilitate the classification of ethanol, supporting its
sustainability initiatives
›› Maintained the certification of Abengoa Bioenergy’s US companies’
greenhouse gas inventory system in accordance with the ISO-14064
standard
›› Renewed the Social Responsibility Program SA 8000 at Abengoa
Bioenergy in United States
›› Continuation of the STOP program, improved on-site work safety at
all US facilities
ABENGOA
BIOENERGY
CSR report 2014 | 05 Main achievements
Brazil
Although pricing has not been the most favorable, the company has had
a banner year due to an effective and successful risk management and
cost reduction plan. Main achievements in the Brazilian market were:
›› Maximized operations of two Brazilian cogeneration plants, with
a total installed capacity of 140 MW (due to the high prices of
electricity)
›› Abengoa Bioenergy (Brazil), was selected by the Brazilian
Development Bank (BNDES) and the Funding Authority for Studies
and Projects (FINEP) to develop a plant using second-generation
technologies for ethanol production with sugarcane waste as its
primary feedstock
›› Continued “Paja” project activities in the São Luiz plant
›› Continued DuPont’s STOP program in the industrial and agricultural
facilities
›› Recertified Abengoa Bioenergy Brazil’s plants with ISO 9001
›› Maintained ISO 14001 and OHSAS 18001 certifications for
cogeneration in the Abengoa Bioenergía São João and Abengoa
Bioenergía São Luiz plants
›› Maintained ISO 14064 certification for greenhouse gas (GHG)
inventory
›› Maintained the Certificado Etanol Verde (Green Ethanol
Certification), guaranteeing compliance with Brazilian agrienvironmental protocol
page 34
›› Renewed RBSA (RED Bioenergy Sustainability Assurance) certification
for ethanol exports to Europe, guaranteeing compliance with
European Union directives on renewable energy sources
›› Renewed RFS2 (Renewable Fuel Standard) certification for ethanol
exports to the United States, guaranteeing compliance with
Environmental Protection Agency (EPA) requirements
›› Renewed LCFS (Low-Carbon Fuel Standard) for ethanol exports
to California (US), guaranteeing compliance with California Air
Resources Board (CARB) requirements
›› Continuation of the “Renovation” project in Abengoa Brazil to
qualify sugarcane harvesters for other activities
›› Consolidated sugar trading activities, with a total volume of
300,000 tons
ABENGOA
BIOENERGY
CSR report 2014
06
Strategy for
a sustainable
future
page 35
ABENGOA
BIOENERGY
page 36
CSR report 2014 | 06 Strategy for a sustainable future
G4-EC2
Strategy for a sustainable future
In a global scenario of incremental energy consumption and an urging
need to reduce emissions, Abengoa ranks among the world leaders in
renewable energy generation by turning challenges into opportunities.
Abengoa successfully does this through the development of innovative
new technologies that respond to problems posed by the present
environmental and resource crisis. The company firmly believes in the
need to achieve a clean energy generation system, free of CO2 emissions,
and it contributes its technology and leading position in innovation to this
goal.
Responsible management in Abengoa
Abengoa has maintained the commitments assumed by the organization
in the previous SCSRP to align them with the new challenges faced by the
business, contributing to the creation of new opportunities..
The 2020 SCSRP has been designed as a support tool for the proper
management of any impact the company’s activity may cause on
society and on the environment considering the specific features of the
geographies in which it operates. Furthermore, it intends to reinforce
the position achieved by Abengoa in recent years in the field of CSR to
become a leader in the implementation of responsible management best
practices.
In this regard, the company has major competitive advantages:
›› Strong commitment of the company’s governing bodies, which is a
significant driver of progress in this field.
›› High level of maturity of the tools implemented for timely
monitoring of the indicators and objectives established in all the
geographies where it operates.
Abengoa Bioenergy applies innovative technology solutions for
sustainable development with a social and environmentally-friendly
business model. The company’s commitment ensures a performance
that contributes to economic development and social progress of the
communities in which it operates, and at the same time, mitigates its
environmental impacts. To this end, Abengoa uses powerful strategic and
management tools and goals that guide ongoing improvement targets
within a sustainability strategy.
Abengoa Bioenergy will implement the H2020 objectives defined by
Abengoa as part of its strategic corporate social responsibility plan in all
its areas of operation.
2020 strategic corporate social responsibility plan
Tools for sustainable and responsible management
In 2014, Abengoa completed the design of its new strategic corporate
social responsibility plan 1 (SCSRP) defining the framework and guidelines
of the company in this area by means of a whole set of actions aimed
at integrating the expectations of its stakeholders into its organizational
strategy, identifying specific goals and designing specific actions to
strengthen its links with the community. The new SCSRP has a six-year
horizon reaching until 2020 and replaces the previous one which had
been drafted in 2008.
In order to manage its performance appropriately Abengoa Bioenergy has
a sustainability management integrated system (SMIS), a tool developed
by the company to compile all the outcomes associated to social,
environmental and economic impacts of its activities in order to obtain
reliable and consistent information to improve decision-making, establish
improvement targets, mitigate negative impacts and report information
to stakeholders.
Note 1For further information about the SCSRP, you can consult the Abengoa
Corporate Social Responsibility report, 2014, Chapter 5, “Company Strategy “, page 36
ABENGOA
BIOENERGY
page 37
The SMIS is made up of three management systems connected to the
different dimensions of CSR: greenhouse gas management system
(environmental dimension), environmental management system
(environmental dimension) and corporate social responsibility system
(social environmental and economic dimension).
Independent external entities audit the SMIS on an annual basis to ensure
the truthfulness of the information reported. These independent review
process are carried out with a reasonable assurance level.
Quality
Quality is a basic pillar for sustainability management in Abengoa
Bioenergy. Therefore, a process quality approach has been implemented,
covering the company’s entire value chain, from feedstock suppliers to
end clients, and including production processes. Its quality management
system has allowed Abengoa Bioenergy to achieve final product
standards exceeding both the levels required by clients and any applicable
regulations enforced. All of this is possible thanks to an ongoing
improvement process.
Moving forward in quality improvement has been possible thanks to
the certification under the international ISO 9001 quality management
standard which has been obtained by Abengoa Bioenergy and has been
maintained by all its subsidiaries during 2014. Abengoa’s goal for 2015
is to achieve the +500 seal of the European Foundation for Quality
Management (EFQM).
Abengoa Bioenergía San Roque
Abengoa Bioenergía San Roque has received the European excellence
400+ seal, as accredited by the Management Excellence Club. This is an
international acknowledgement awarded by an external company, which
recognizes organizations for their excellence in management and for the
quality of the services they provide.
After eighteen months of work a report was produced with information
on the plant’s activity over the last five years. It was submitted to and
evaluated by members of the Management Excellence Club, who verified
the criteria required to achieve this recognition. Finally, the audit was
successfully completed, exceeding the 400 points required to achieve the
European excellence 400+ seal awarded by the EFQM.
This process towards excellence, driven by the plant’s management,
required a thorough review of the management’s internal work and
capabilities.
In conclusion, in this path towards excellence it is expected that all work
processes be based on a total quality management system that ensures
ongoing improvement in management and achievement of excellent
results in overall organizational performance, its clients, individuals
and the community in which it operates. This has to be achieved by a
leadership that drives policy and strategy and that will become true by
means of individuals alliances, resources and processes.
The step taken by Abengoa Bioenergía San Roque will be the first
in a process, that all other Abengoa Bioenergy plants will gradually
implement, that further demonstrates the company’s commitment to
ongoing improvement of activities and processes.
ISO 17025: conformity assessment
As a proof to third parties of its technical competence, Abengoa
Bioenergy has taken a further step in its top quality standard meeting
one of the company’s priority targets: improving its competitiveness and
productivity, generating confidence among its clients.
The ISO 17025 standard accredits that an analytic chemical laboratory is
technically competent and capable of producing technically valid results.
It demonstrates the technical competence of the staff, facilities and
ABENGOA
BIOENERGY
page 38
G4-15, G4-HR6, G4-HR7
environmental conditions, validated analysis methods, equipment and
reliable procedures; and that it is capable of producing reliable testing
and calibrating results. It includes quality assurance systems and operates
an effective quality and ongoing improvement system.
In 2014, Biocarburantes de Castilla y Leon got the ISO 17025
accreditation for conducting tests for density, water content, chloride
and sulfate in ethanol, according to the European (EN) and American
standards (ASTM). Previously, this same accreditation had been obtained
by the laboratory of the Abengoa Bioenergía San Roque plant for glycerin
tests.
The progress achieved by the laboratories of Biocarburantes de Castilla
y León and Abengoa Bioenergía San Roque will be continued and
complemented by the laboratories in other Abengoa Bioenergy plants as
a demonstration of their commitment of ongoing improvement of their
activities and processes. The goal for 2015 is to obtain this accreditation
for the laboratories of the Bioetanol Galicia and Ecocarburantes Españoles
plants.
United Nations Global Compact
Abengoa Bioenergy subscribes Abengoa’s criteria and systems with
regards to universal principles. Every year since 2005, Abengoa has
published a progress report in the UN Global Compact website where it
reports its progress in the implementation of the Compact’s ten principles
and underlines the challenges and targets it faces every year to its
stakeholders.
Principle 1
Businesses should support and respect the protection of internationally
proclaimed rights, within their sphere of influence.
Abengoa assumes in its employment practices and in the professional
activities of its employees this principle, the United Nations declaration of
human rights and its protocols, as well as the international conventions
adopted by this international organization, and in the matter of social
rights, those of the International Labour Organization (ILO).
Principle 2
Business should make sure that they are not complicit in human rights
abuses.
Biocarburantes de Castilla y León laboratory personnel.
The company’s common management systems include binding rules
for all employees and are applied across the organization without any
exception. They establish the company’s guidelines and policies regarding
the protection of human rights. In order to guarantee the integrity
of all those who may influence the organization’s activities Abengoa
requires all its suppliers to accede to the social responsibility code (SRC)
for suppliers and subcontractors, which contains eleven clauses based
on the principles of the United Nations Global Compacts inspired in the
SA 8000 international standard. Moreover, in 2011 Abengoa developed
a responsible procurement system which is being implemented in four
ABENGOA
BIOENERGY
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G4-15, G4-HR6, G4-HR7
stages. Its fundamental objectives include: sustainability criteria in supplier
evaluations, respect for human rights, and standardization of processes
which may currently differ based on the different characteristics of the
suppliers and of the company’s activities.
Principle 3
Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining.
Abengoa openly supports the freedom of association of its employees as
it considers this an inalienable right.
Principle 4
Businesses should uphold the elimination of all forms of forced and
compulsory labor.
Abengoa’s common management systems establish the company’s
guidelines and policies on recruitment, as well as employee procedures
and working conditions, all of which are intended to ensure efficient
work and an adequate personal and professional life balance. It was
decided to include in the SRC a specific clause to ban coercive hiring
practices.
Principle 5
Businesses should uphold the effective abolition of child labor
Abengoa strongly rejects all forms of child labor, in accordance with
the terms specified under Convention 138 of the International Labor
Organization (ILO) concerning minimum working age. It was decided to
include in the SRC a specific clause to ban the use of child labor and a
specific requirement to comply with the rules of the International Labor
Organization.
Principle 6
Businesses should uphold the elimination of discrimination in respect of
employment and occupation.
Abengoa has its own Equality Framework Plan, which applies to all
company personnel, and which seeks to ensure equal treatment and
opportunities for men and women, and to prevent any situation that
may imply or constitute direct or indirect labor discrimination on grounds
of gender. In 2009, a mobbing reporting protocol was put in place at
Abengoa to deal with any potentially discriminatory situation within the
organization.
This protocol addresses reporting procedures and defines situations that
could constitute harassment or mobbing. It is applied in accordance
with the principles of confidentiality, credibility and timeliness in order
to guarantee and protect the privacy, dignity and rights of company
employees.
Principle 7
Businesses should support a precautionary approach to environmental
challenges.
Abengoa has got a sustainability policy that is clearly defined under
internal rules and regulations, in addition to a risk management system
that includes environmental aspects, a greenhouse gas (GHG) emissions
inventory, specific emission reduction plans for all its business groups, and
an Environmental sustainability indicator system. All of them allow the
company to detect and prevent environmental risks, evaluate business
sustainability and set improvement targets.
ABENGOA
BIOENERGY
page 40
G4-HR6, G4-HR7
Principle 8
Principle 10
Abengoa bases its business and management model on innovative
technologies for sustainable development, thus ensuring the sustainability
of not only its products and services, but also its processes. Since the
implementation of the greenhouse gas inventory in 2008, Abengoa
has required all of its suppliers to report the emissions attributed to the
products and services acquired by the company and suppliers must report
the emissions associated to every order placed by the company. In this
manner the company expands down its supply chain the corporate policy
and culture of combating climate change.
Abengoa fights corruption through its code of professional conduct,
which governs the actions and relations at work of Abengoa’s employees,
managers, directors, and all of its stakeholders. This code demands the
highest standards of honest and ethical conduct; it includes procedures
for dealing with personal and professional conflicts of interest. Moreover,
it requires adequate and precise communication in all the periodical
reports Abengoa has to submit to regulatory authorities and compliance
with all applicable laws, codes and regulations; it addresses misuse or
misapplication of assets and business opportunities; and it demands
maximum confidentiality and fair treatment both in Abengoa and outside
and immediate internal reporting of violations of the code and any other
illegal behavior.
Businesses should undertake initiatives to promote greater environmental
responsibility.
Principle 9
Businesses should encourage the development and diffusion of
environmentally friendly technologies.
Abengoa applies innovative technology solutions for sustainability in the
energy and environment sectors, generating electricity from renewable
resources, converting biomass into biofuels and producing drinking water
from sea water. Our dedication to entrepreneurship, social responsibility
and transparent, effective management are the hallmarks of Abengoa’s
mission to employ science and engineering to the betterment of human
lives and the world in which we live. The organization is permanently
committed, through its innovation policy and strategy, to promoting
sustainable use of resources and raw materials covering their entire life
cycle. It focuses its efforts on renewable energy-related innovations.
Promotion and implementation of these technologies are based on using
lower environmental impact sources and increasing energy efficiency.
Businesses should work against corruption in all its forms, including
extortion and bribery.
In 2010 Abengoa implemented an external reporting channel, in addition
to the already existing internal one and its purpose is to report any
irregularity, non-compliance or behavior which fails to meet the ethical
standards, regulations and rules governing the organization. Furthermore,
Abengoa enforces the US Foreing Corrupt Practices Act (FCPA), which
regulates the actions of all companies operating in the US and makes it
unlawful for businesses and their managers, directors, employees and
agents to pay, promise to pay, offer or authorize payment of anything of
value to any foreign official, foreign political party, official of international
organizations, etc. in order to secure any improper advantage.
ABENGOA
BIOENERGY
CSR report 2014
07
Environment
page 41
ABENGOA
BIOENERGY
page 42
CSR report 2014 | 07 Environment
G4-SO1, G4-SO2
Environment
According to United Nations data, in 2030 the global demand of drinking
water will increase by 40 % and the world’s population will amount to
8.49 billion people. Moreover, estimates indicate that in all developing
regions most of the population will live in urban areas, which will increase
the need for energy generation and transmission, access to drinking
water and waste management and reuse.
Additionally, a notable increase of raw materials demand is expected;
this will especially affect input-intensive companies since access to and
consumption of raw materials will experience substantial changes.
However, this will also mean an opportunity for companies developing
reuse processes and for the generation of new materials from residues,
as it is the case of Abengoa Bioenergy, and the production of secondgeneration (2G) biofuels from municipal solid waste.
This chapter discusses how Abengoa Bioenergy performs the
management and effective use of natural resources for the production of
biofuels and byproducts, such as DGS and CO2.
Managing impacts on the environment:
global footprint
In 2013, Abengoa set out to develop an internal standard referred to
as the Global Footprint for the purpose of being able to determine
the main impacts of its activities, quantify these impacts toward
improved management thereof and establish commitments to improved
performance.
The standard is structured around a set of indicators with the capacity
to evaluate the impact of a project on the natural, social and economic
environment while at the same time enabling the company to
anticipate future impacts of projects with similar characteristics and set
improvement targets.
Abengoa considers that the main impacts of its operations are linked to
the following factors:
›› Environmental dimension:
°° Raw materials used and consumption of recycled materials.
°° Water withdrawal, reuse and efficiency.
°° Consumption, reuse and efficiency of primary and
intermediate energy.
°° Waste generated and valorization.
°° GHG emissions generated by scope.
›› Economic and social dimension:
°° Purchases made from local suppliers.
°° Local employees (from the country and region) with respect to
the total number of employees hired.
°° Negative impacts on local communities.
°° Investment in external social engagement.
°° Accident rate and frequency.
In 2014, the company carried out the first calculation of the Global
Footprint standard, once it had completed the development of the
internal norm that includes the procedures and tools needed to calculate
the global footprint in accordance with international standards (ISO
14001, ISO 14067, ISO 50001, ISO 26000, SA8000, GRI G4 and OHSAS
18001) and which establishes the reference values for each indicator.
These values will be adapted in 2015 to the different project types and
locations.
This calculation has been made for all Abengoa Bioenergy’s facilities that
have a significant impact on any of the three areas mentioned above.
The objective for 2015 is completing the second calculation of the
standard global footprint after incorporating benchmark parameters
adjusted to the different types of project.
ABENGOA
BIOENERGY
page 43
G4-EN1, G4-EN2, G4-SO1
In order to achieve our goal of reducing the global footprint it is
essential to have reliable systems providing information on the impact
of the organization’s activities on the environment. The success of
the Global Footprint project is based on the coordinated work of the
quality, sustainability and CSR departments and the managers of the
business group’s projects and production plants. To this end, two specific
tools are available in the integrated sustainability management system
(SMIS), which provide information related to environmental impact: The
environmental management system (EMS) and the greenhouse gas (GHG)
management system.
›› The environmental management system (EMS) defines 11 factors
(raw materials, energy, water, discharges and spills, waste,
emissions, biodiversity, transport, products and services, odors
and noise) to provide information related to the impact of the
organization’s activities on the environment, which allows it to
establish reduction targets and areas subject to improvement.
›› The GHG management system was developed by Abengoa in
2008 and its role is to measure the GHG emissions associated with
the organization’s products and services. Its results are subject
to external verification on an annual basis and allow for the
establishment of annual reduction targets and labelling products
and services with their carbon footprint.
Moreover, the company has sourcing tools to manage all the data and
information related to the company’s social and economic aspects, which
help to complete the calculation process and thus involve other company
departments in the improvement process.
Main basic environmental
contents
The values of all worksites, their associated activities and all the projects
in which Abengoa Bioenergy has management control have been
included in the calculation of environmental impacts. All basic indicators
have been calculated based on specific measurement and calculation
protocols in order to standardize implementation criteria.
Environmental impact control, awareness
and minimization
Some of the most relevant activities in the minimization of environmental
impacts are prevention, environmental management, discharge and waste
inspection, internal and external audits, certification by relevant entities,
employee training and use of clean technologies, among others.
As far as the use of raw materials is concerned, the main year-to-year
differences are due to the differences in the production of bioethanol and
coproducts. Changes in the way materials are grouped according to the
new information classification and management contents, pursuant to
the new basic contents established by the new GRI G4 guidelines, must
be taken into account.
Office paper use
Several initiatives are being implemented in Abengoa Bioenergy to reduce
paper use in offices, such as monthly monitoring of the paper used by
employees, which has been implemented in some offices and has been
very successful as shown in the data corresponding to successive years.
Moreover, we are working to increase the use of recycled paper.
ABENGOA
BIOENERGY
page 44
G4-EN1, G4-EN2
Paper used (t)
2012
2013
2014
Paper (t)
23.25
6.28
2.23
Recycled paper (t)
19.67
1.27
5.36
2.16
–
–
45.09
7.55
7.59
Cardboard (t)
Total
The increase experienced in the amount of feedstocks used is due to
higher production in the plants in operation. The most significant increase
has taken place in sugarcane and grain consumption, as it was the case
in 2013.
Chemical products
Chemical products (t)
Raw materials
2012
2013
2014
133.70
41.88
55.06
1,396.37
1,085.22
1,040.80
244.00
172.33
54.74
30.78
39.82
1.61
Abengoa Bioenergy keeps a strict control of the raw materials consumed
and natural resources used for the production of biofuels, sugar and
animal feed. The main feedstocks used are grain, sugarcane and oilseeds.
Additionally, production processes also consume energy and water; these
inputs are also strictly accounted for.
Citric Acid
A list of the feedstocks and substances most heavily used in biofuel and
coproduct production is shown below. A large number of substances is
used, most of them in small quantities. The percentage of such materials
that is valorized reaches 4.25 %.
Sulfuric Acid
9,792.51
12,809.31
10,468.70
Ammonia
1,359.92
2,219.62
2,168.94
–
–
–
4,496.12
4,137.00
5,127.75
478.04
926.29
1,009.73
2,154.49
1,553.56
1,447.66
44,468.00
187,318.17
50,277.97
8,560.49
8,082.25
4,877.01
Hydrochloric Acid
Phosphoric Acid
Sulfamic Acid
Sulfur
Quicklime
.
Bleach
Raw materials (t)
Sodium Methylate
2012
2013
2014
128,610.08
87,383.12
83,015.53
607.51
21.11
4,437.99
Sugarcane
4,851,562.65
5,366,273.68
5,804,711.43
Grain
5,048,674.48
4,787,280.61
5,898,738.80
0.00
–
–
280,189.44
325,728.36
405,855.05
10,309,644.16
10,566,686.88
12,196,758.80
Vegetable oils
Biomass
Wine alcohol
Vinasse
Total
Other Chemicals
Caustic Soda
ABENGOA
BIOENERGY
page 45
G4-14, G4-EN1, G4-EN2
Other materials and compounds (t)
The reduction in the use of chemicals (other chemicals) over 2013 is due
to a different production scenario, as well as to different reporting criteria
from previous years, since they are now are reported on purchase rather
than on use basis, as well as to changes in the categories included in
“other chemicals”.
Other materials and compounds
Other materials and compounds (t)
2012
2013
2014
Fats
7.68
18.50
21.49
Antibiotics
2.92
3.72
5.09
1,506.14
3,617.66
2,947.68
179.66
157.05
76.34
–
–
–
422.00
–
14.19
Filter cake
–
–
–
Limestone
27,395.75
19,523.90
23,444.70
Potassium Chlorate
–
213.94
95.86
Monoammonium Phosphate
–
157.11
0.00
Gypsum
–
–
–
Silicon
333.20
228.90
205.80
Bleaching Earth
191.79
101.47
94.11
–
–
–
Biocides
1.30
11.59
14.82
Nutrients
40.00
29.08
25.51
Fertilizers
25,821.43
30,184.59
22,110.36
Enzymes
Yeasts
Other salts
Brine
Compost
2012
2013
2014
Molasses
–
–
–
Other Biocides
–
–
–
Urea
12,081.50
16,439.99
7,874.05
Methanol
12,499.53
8,538.52
9,047.15
Oils and lubricants
40.97
17.77
7.14
Wood
92.17
–
–
Metals
66.20
–
–
Plastics and polymers
10.48
79.16
96.19
–
–
–
Spares
Energy
Abengoa seeks to contribute to mitigating the consequences of climate
change by producing clean, emission-free energy and promoting
maximum efficiency in company operations.
Abengoa promotes the execution of measures aimed at optimizing
energy efficiency in all company operations, as well as the use of
renewable energy sources. Abengoa Bioenergy consumes energy both in
its production processes and in its offices in one way or another.
Biofuel plants in Europe and the United States consume energy mainly
in the form of natural gas. The plants in Brazil use the combustion of
bagasse (sugarcane residues after extracting the sugar contained in the
plant) that are used as a renewable energy source from biomass. The
amount of energy consumed in 2014 was slightly higher than in 2013
due to production increases in several plants in Europe and the start of
operations in other plants in the United States, such as Colwich or the
commissioning of the Hugoton plant.
.
ABENGOA
BIOENERGY
page 46
G4-EN3, G4-EN4, G4-EN6, G4-EN7
Direct energy consumption (GJ)
Energy 2014
2012
2013
2014
603,447.24
656,459.23
684,613.74
25,081,198.26
23,611,845.79
26,504,547.94
1,261.81
1,063.46
24,560.29
–
–
–
Biofuels
222,950.08
63,041.22
5,582.58
Biomass
14,628,447.80
15,306,724.90
16,688,242.52
Total
40,537,305.18
39,639,134.60
43,907,547.07
Petroleum
products
Natural Gas
Other
Coal products
Additionally, facilities and worksites consume intermediate energy in
the form of electricity and thermal power. Over the last three years,
consumption figures were as follows:
Intermediate energy consumption (GJ)
2012
2013
2014
Electricity
1,909,278.00
1,862,779.91
1,925,071.77
Thermal
1,576,212.00
1,431,353.23
1,358,553.19
Total
3,485,490.00
3,294,133.14
3,283,624.96
Energy production, one of the pillars of Abengoa’s business model, allows
it to contribute actively to climate change mitigation and the transition
to an emission-free energy model. Total energy production from different
energy sources in 2014 was 578,046,832 GJ, distributed as follows:
Direct energy production (GJ)
Biofuels
57,175,927
Biomass
7,061.97
Electricity
3,116,148.02
Thermal
2,465,208.98
Another fundamental aspect of fulfilling Abengoa’s sustainability
policies and objectives is the implementation of measures to promote
energy efficiency and emissions abatement in company operations and
processes.
Below, there is a list of the most relevant initiatives implemented in 2014:
Savings initiatives 2014
Initiative
Benefit
Energy saving by means of changes
introduced in the purification
column feeding system
Reduction of
consumption of up to
5,463.91 MWh HHV of
natural gas
Maintaining the energy
management system (UNE-EN ISO
50001)
Reduction of CO2
emissions into the
atmosphere
Adjustment of operation conditions
of fermentation, equipment,
boilers, evaporators and blending
tanks in plants
Reduction of energy
consumption of all the
production process
equipment
Saving or
investment
(€)
3,256
ABENGOA
BIOENERGY
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G4-DMA, G4-EN6, G4-EN7, G4-EN8, G4-EN9, G4-EN10, G4-EN30,
Several initiatives related to business travel and commuting to work have
been implemented in order to reduce indirect energy consumption, such
as contracting buses for employee transport and promotion of the use of
bicycles as a sustainable and healthy transport means. Moreover we have
carried out a more efficient management of the supplier portfolio.
Water: efficient use
2012
2013
2014
River water
8,993,795
8,084,540
10,348,474
Underground water
3,871,654
3,923,772
5,890,558
Mains water
2,645,927
2,977,408
2,549,253
Used water
Water is a basic natural resource with unequal distribution and access
worldwide. Water management at Abengoa therefore focuses on
efficient water use, avoiding competition with human consumption and
minimizing the impact on protected water bodies.
Biofuel production processes account for most of the water used by
Abengoa Bioenergy. It comes mainly from surface water and third party
supply.
The company’s top sustainability policy priority is the reduction of the
amount of water used which can be partially achieved by reusing it in all
activities not requiring drinking water quality.
Water used by type of use (m3)
2013
2014
14,936,814
22,286,148
Refrigeration
16,316
29,956
Sanitation
32,589
29,589
Process
Water use by source (m3)
3,557,407
“Used water” refers to the industrial process water reused in Brazil
as fertilizer in the farmland of the farming companies of Abengoa
Bioenergia Brazil.
The amount of water reused in processes has been 134,224.82 m3,
accounting for 0.6 % of the total volume of water used in Abengoa
Bioenergy. If we include the “used water” used as fertilizer by the
farming companies in Brazil the share rises to 16 % of the total amount
consumed for all purposes.
Abengoa identifies the origin of all its water sources to verify that none
of them is included in the Ramsar list of wetlands. Moreover, in 2014 no
especially sensitive source or any source accounting for more than 5 % of
the total annual consumption was recorded.
Regarding water consumption reduction initiatives, the following should
be noted:
›› The bioethanol plant Ecocarburantes Españoles, located in Murcia
(Spain), developed a modification on the water outlet resulting in
a decrease of tank inflow by 4 m3/h. This action had a cost of €
25,200.
›› Bioethanol plants in Brazil implemented actions to reduce their
water consumption by 1 m3 per ton of processed sugarcane, which
required an investment of € 155,085.
ABENGOA
BIOENERGY
page 48
G4-EN11, G4-EN12, G4-EN13, G4-EN14
Biodiversity
Abengoa Bioenergy does not carry out any operations on owned, managed or leased land located in rich biodiversity areas. The only exceptions to this
premise are the following:
Affected biodiversity areas
Country of location
of the protected
or high-value
biodiversity area
Affected protected
area (ha)
Total protected
area (ha)
Position of
facilities
regarding
protected area
Type of
operation
Type of
protected area
Protection status
Affected
species and
risk levels
Brazil
0.34
1.64
Inside
Extraction
Sweetwater
ecosystem
Permanent
conservation area
Not measured
for the period
Brazil
0.20
0.20
Inside
Extraction
Sweetwater
ecosystem
Permanent
conservation area
Not measured
for the period
United States
0.14
0.45
Contains part of it
Production
Sweetwater
ecosystem
Wetland
Bats mussels,
snails and
turtles
Abengoa Bioenergy’s information system has not identified any significant impacts on biodiversity in protected natural spaces or unprotected areas with a
high biodiversity, resulting from activities, products and services in protected areas and in non-protected areas with a high biodiversity. No effect to species
included in the IUCN Red List has been identified; therefore no strategies or actions have been implemented for managing impacts on biodiversity.
ABENGOA
BIOENERGY
page 49
G4-DMA, G4-EN15, G4-EN16, G4-EN17, G4-EN30
GHG emissions
Emissions resulting from Abengoa Bioenergy’s activities are accurately
detailed and classified by the results of the greenhouse gas (GHG)
emissions inventory Abengoa has been calculating since 2008. It is
managed by an integrated in-house tool called SMIS (sustainability
management integrated system). The analysis is structured based on
scope and sources and it includes the emissions from biomass operations.
This register has been widely disseminated so that other companies can
also put the focus of their climate change policies at the center of their
activities and interests.
The following elements have been considered in GHG emission
calculations:
›› Direct emissions from all Abengoa Bioenergy’s sources (combustion,
process, transport and fugitive emissions).
›› Indirect emissions from steam, electric and thermal energy
purchased and those from home-work commuting.
›› Losses in the distribution and transport of electric energy and
emissions along the value chain of the fuels consumed in the
generation of purchased electric energy.
emissions and abatement reports. The information shown below is the
same that has been included in the GHG emissions report verified by
AENOR in 2014.
GHG emissions (t CO2-eq)
Emissions
2012
2013
2014
Direct emissions
1,707,006
1,514,706
1,589,456
(scope 1)
1,707,006
1,514,706
1,589,456
Direct emissions from
Biomass (scope 1)*
2,916,564
2,998,862
3,444,618
Indirect emissions
(scope 2)**
369,390
339,596
348,570
Indirect emissions
(scope 3)***
76,745
98,550
57,586
Supplies (scope 3)
2,566,956
2,296,556.6
235,1371.7
Note *: According to the GHG Protocol corporate standard.
Note **: Including emissions from purchased steam, electric and thermal energy.
Note***: Including emissions from business travel (2,277.05 t), home-work commuting
(1,663.64 t), losses in electric energy transport (13,664.27 t), emissions along the value chain of
fuel consumed in the generation of purchased electric energy (39,981.16 t).
Likewise, emissions from the combustion or processing of biomass are
also accounted for.
The calculation of emissions has followed the methodologies set forth
by the Intergovernmental Panel on Climate Change (IPCC) and the GHG
Protocol. Where possible, fuel-specific emission factors have been used;
in some cases values of the national GHG inventories of the countries in
which Abengoa Bioenergy operates have been included, otherwise the
generic values published by the IPCC have been used.
Abengoa’s emissions management system is verified every year externally
according to the ISO14064 Standard, an international environmental
certification that provides creditability & assurance to greenhouse gas
The greenhouse gas inventory is a tool that guarantees Abengoa
Bioenergy’s responsibility and efficiency in combating climate change.
All Abengoa subsidiaries in all geographic areas demonstrate their
commitment by the full accounting of their emissions as opposed to
other local scope footprint analysis techniques.
ABENGOA
BIOENERGY
page 50
G4-EN15, G4-EN16, G4-EN17, G4-EN19, G4-EN20, G4-EN21
Other atmospheric emissions
Emissions measurement in Abengoa Bioenergy’s inventory has clear
advantages as compared to other instruments, since it is:
By having a detailed knowledge of its emissions Abengoa can set
quantitative reduction targets assessing progress and effectiveness of
implemented actions. Emissions other than CO2 are as follows.
›› Comprehensive in their consolidation perimeter and scopes.
›› Subject to internal and external verification.
It is therefore a global model supporting emission reduction targets and it
also involves suppliers in climate protection policies.
Atmospheric emissions (t)
The maturity of the emissions management system within the SMIS tool
has allowed for the establishment of emission reduction plans and the
development of CO2 labelling of the products and services we supply. The
most relevant data for 2014 are listed below:
Initiatives to reduce greenhouse gas emissions
Elimination of sugarcane straw burning after harvest
(Abengoa Bioenergia Brasil)
Estimated reduction
(t CO2-eq)
40,474.98
Reuse of CO2 from fermentation. 30 % reduction
of direct CO2 emissions from biomass operations as
compared to 2012 (Abengoa Bioenergy France)
28,000
Capture of CO2 from fermentation (Biocarburantes
de Castilla y León)
14,000
Reduction of natural gas consumption (Biocarburantes
de Castilla y León, Ecocarburantes Españoles,
Abengoa Bioenergy Indiana)
8,594
2012
2013
2014
NOx
5,435
5,925
3,872
SOx
212
248
291
CO
9,647
14,757
10,160
HAP
–
32
32
VOC
3,321
333
432
Particles
1,993
2,161
2,801
Other
16,698
3,712
4,791
Total (t)
37,307
27,169
22,378
Emissions of ozone depleting substances in 2014 were zero. This is due
to the fact that ozone depleting substances are limited to the amounts
used in refilling refrigeration equipment during preventive or corrective
maintenance; therefore, such amounts depend on the requirements
detected during such activities.
ABENGOA
BIOENERGY
page 51
G4-DMA, G4-EN22, G4-EN23, G4-EN24,G4-EN25, G4-EN26
Discharges and spills
No incidents involving discharges or spills with environmental impacts
have been recorded in Abengoa Bioenergy’s information system in 2014.
Therefore, there have been no costs in sanctions of damage mitigation
measures.
Abengoa Bioenergy is aware of the fact that proper environmental
management requires an adequate treatment of effluents or process
water in its facilities in order to minimize its environmental impacts.
To this end all the companies that, due to their activities, may have a
negative impact on the status of the water they use have implemented
an adequate treatment before they are discharged into a water stream
or sanitation network. All discharges are subject to permits and they are
controlled by regulatory entities to ensure conformity.
The following table shows the effluents and wastewater discharges from
the activities of Abengoa Bioenergy.
2012
2013
2014
792,852
722,640
605,430
–
–
–
4,435,889
2,926,849
3,382,532
Discharges to land infiltration (m3)
–
–
–
Diffuse or undefined land discharges (m3)
–
–
–
Delivery to other Abengoa companies (m3)
–
–
–
3,395,939
3,540,232
3,582,872
825,158
2,259,249
2,938,105
9,449,838
9,448,970
10,508,939
Discharges to sanitation networks (m3)
Discharges to external wastewater treatment facilities (m3)
Discharges to surface water bodies (m )
3
Delivery to third parties for reuse (m3)
Discharges to the environment (steam) (t)
Total
Abengoa Bioenergy, being part of Abengoa, manages its daily activities
with a focus on minimizing waste generation. Its priorities are recycling
and reuse over any other option, as well as using waste for energy
production rather than disposing it in landfills. Controlling the waste it
produces enables the company to reduce it and improve the efficiency of
its production processes.
Next there is a summary of the most significant waste produced by
Abengoa Bioenergy in its activities classified according to its final
destination and to whether they are hazardous or not.
Discharges (m3)
Type
Waste
Non-hazardous waste
Non-hazardous waste (t)
Type
2012
2013
2014
351,783.48
2,213.98
782.60
Composting
1,382.02
356.33
1,400.49
Incineration
2,100.74
34.15
30.46
Recycling
5,274.11
4,353.39
3,337.83
Reuse
–
390.12
9,148.15
Lanfill
179.75
165.50
1,119.24
Other
9,835.05
6,934.79
7,749.22
Total
370,555.14
14,448.27
23,567.99
Onsite storage
ABENGOA
BIOENERGY
page 52
G4-EN23, G4-EN25, G4-EN26, G4-EN27, G4-EN28
Products, services and transportation
Hazardous waste
Abengoa provides an exhaustive control over the impacts of its activities
until the end of life of the products and services provided: biofuels and
DGS.
Hazardous waste (t)
Tipo
2012
2013
2014
Onsite storage
3.53
8.13
3.12
Composting
–
–
852.14
Incineration
86.19
56.02
7,695.46
454.20
171.11
151.33
–
170.86
135.87
0.09
0.10
0.05
Other
468.46
2,480.36
225.61
Total
1,012.45
2,886.58
9,063.56
Recycling
Reuse
Landfill
The changes over previous years are mainly due to changes in plant
production requirements, changes in waste treatment processes and
differences in classification and sorting out; therefore, a strict comparison
to previous years is not possible.
Inadequate transport of hazardous waste, especially to countries lacking
domestic regulations and infrastructures to treat them, may entail a risk
both to human health and to the environment. Therefore, the company
guarantees that these activities are carried out by certified waste
managers and analyzes carefully its hazard level and final destination. In
2014, 2.35 tons of hazardous waste were transported in Spain and 19.48
tons in Brazil.
Due to their specific nature, it has not been possible to identify initiatives
aimed at mitigating the environmental impact of the products and
services sold and placed in the market that can be recovered at the end
of their useful life and no specific measures have been implemented to
reduce the potential impact of such products and services.
Notwithstanding, concerning the recovery of products and packaging
placed in the market in 2014, 3,386.5 t of carbon dioxide from
fermentation have been captured and marketed, replacing carbon dioxide
from fossil sources.
In 2014 no significant impacts have been identified in the Abengoa
Bioenergy information system resulting from transportation of products
and other material goods used for the organization’s activities or from
employee transportation.
RBSA Certification
The RBSA Scheme has been designed as a mechanism to verify
compliance with Directive 2009/28/EC on the promotion of the use of
energy from renewable sources.
The development and ulterior approval of the RBSA by the European
Commission has evidenced the efforts devoted by Abengoa Bioenergy
to date to promote the production of sustainable fuels. Likewise, the
fact that it was among the first ones approved in the European Union
is a proof of its commitment to the promotion and use of renewable
energies.
ABENGOA
BIOENERGY
page 53
G4-EN27
The RBSA Scheme applies at global scale: its scope covers all types
of biomass and preprocessed biomass, as well as all type of biofuels.
The Scheme identifies and defines the different economic agents. This
includes all the elements in the biomass / feedstock supply chain, biofuels
processing units or conversion plants and all the elements in the biofuel
supply chain. The economic agents that make up the biomass supply
chain are: Agricultural Production Units, First Collector Suppliers and
Intermediate Biomass Suppliers. All economic operators in each area must
show proof that they comply with the requirements of the RBSA Scheme
before they start operating under it. The RBSA Scheme lays down all the
binding sustainability criteria every economic agent must meet, and also
establishes a recurrent certification system for compliance levels.
The transposition of the Renewables Directive is expected to come into
force in Spain in 2015. This should lead to an increase in the production
and marketing of RBSA biofuel in the country.
In 2014, Abengoa Bioenergy continued working with the same high
standards and technical quality it has evidenced in previous years. One of
the new action lines of the company will be the progressive adaptation of
the scheme and its technology solutions to new regulatory developments
in the field of second-generation biofuels and biofuel quality. In parallel to
maintaining and improving the RBSA Scheme we will continue certifying
new feedstocks and calculating greenhouse gas (GHG) emissions for the
new technologies the industry is developing.
Finally, the RBSA Scheme will keep adapting to include any requirements
demanded by the market, always retaining its high standards and
rationality. Where necessary, any new regulatory aspects will be
incorporated into it in order to qualify feedstocks and biofuel for legal
purposes. Likewise, work with other Voluntary Schemes will continue
to ensure consistency, coherence and guarantee in complying with the
Renewables Directive and its implementation at national level.
Throughout the next year of operations, the RBSA Management Team will
keep focusing its efforts along the two same lines it has worked in: on
the one hand, providing the necessary support to already certified agents
so that they can expand their scope if they so choose; and on the other,
continuing work in our RBSA Dissemination Plan in those areas that show
a high potential for expansion. We will keep monitoring already certified
agents to address any potential incidence and improve both the Scheme
and its management process.
Some of the top priority geographic areas in our dissemination plan are
other European grain-producing countries, such as Bulgaria, Romania and
Russia. We will make emphasis on those areas in which the technology
developments in the Scheme can provide benefits to local producers
(Brazil, United States, etc.).
On the other hand, we consider that the update of the Biofuel Quality
Directive in Germany, which will reward biofuels with lower greenhouse
gas emissions, will place our Scheme in a privileged position: our
emissions calculation tool optimizes data sources for calculation and
provides a greater detail as far geography is concerned; therefore, it
results in emission values for feedstock which are lower and closer
to the real values than the default values published by the European
Commission.
On the other hand, we intend to incorporate into the RBSA standard the
protection of human rights of the workforce employed in gain farming,
something that Abengoa Bioenergy has already implemented for the
suppliers of all the materials procured by the company.
ABENGOA
BIOENERGY
page 54
G4-DMA, G4-EN29, G4-EN31
Noise
Noise pollution occurs when there is an excessive noise that alters the
normal conditions of a given environment. Unless properly controlled this
type of pollution can severely damage people’s quality of life. Abengoa
Bioenergy conducts periodical noise measurements in its facilities to keep
a strict control of its noise emissions.
According to the information contained in Abengoa Bioenergy’s
information register, no noise pollution incidents were recorded in 2014
and no noise mitigation initiatives had to be implemented.
Odor
The concept of odor pollution has gained importance in recent years.
Despite not entailing risks for people’s health, this type of pollution
causes discomfort that has an impact on people’s quality of life.
In 2013, continued complaints for bad odors led to sanctions imposed by
the authorities and to an increase of the political pressure, associated to
high media attention in television, social media and journals. This led to a
negative image of Abengoa Bioenergy Netherlands and some local policymakers even requested the closure of the plant to the environmental
authorities. The lack of transparent communication with stakeholders
ended up in a problem with the entire community.
In 2013, Abengoa Bioenergy Netherlands started to develop a
communication strategy focusing on all stakeholders (press, residents,
policy-makers and authorities) being aware of the negative impact of its
poor communication, and this campaign continued in 2014. Abengoa
is a company with a great environmental value, but this is barely known
in the Netherlands. Only some small groups know that the company is
committed to sustainable development. As opposed to other companies,
Abengoa Bioenergy Netherlands has no followers in the Dutch society
and media. Companies with similar impacts enjoy much greater support
thanks to their closer relationship to policy-makers, media and the
community. Therefore, Abengoa Bioenergy Netherlands has decided to
change its communication strategy seeking a more open and proactive
communication with the community.
The purpose of the new communication strategy was to disclose to the
community the solution of the bad odor problem, showing to society
and authorities that Abengoa Bioenergy Netherlands is environmentally
responsible. It has succeeded in both reducing the political pressure on
the plant and mitigating the risk of its temporary closure.
Although all of these actions have quickly achieved a positive and
constructive result, Abengoa Bioenergy Netherlands was fined
€ 1,260,000 in 2014 for the same odor problem, after a total of 234
complaints were received.
Environmental expenses and investments
Evaluation of the costs derived from environmental mitigation and
protection enables Abengoa to assess the efficiency of its environmental
initiatives and decide where to focus its environmental investments.
ABENGOA
BIOENERGY
page 55
G4-EN31
Environmental expenses and investments in 2014 are detailed below:
Environmental expenses and investments (€)
Type
2012
2013
2014
1,194,903
898,087
1,093,516
Emission management, treatment
and measurement
119,318
1,005,564
5,510,266
Costs from purchase and use of
emission certificates
446,841
128,905
209,595
Depreciation of specific equipment;
maintenance, materials and services
required for their operation
87,732
75,951
75,951
Environmental liability insurance
51,399
72,348
46,588
Cleaning expenses, including spill
remediation expenses
2,619
7,358
8,723
415,631
709,218
495,102
Staffed employed in education and
training
17,911
20,926
14,769
External certification of
environmental management systems
66,820
50,917
60,103
481,214
837,265
531,200
0.0
25,360.7
27,224.2
567,365
991,138
1,383,866
10,011
1,298
3,252
–
12,000
–
Waste treatment and disposal
External environmental management
services
Staff allocated to general
environmental management
activities
Cleaner technology installation
expenses
Other environmental management
expenses
Environmental training
Research and development
ABENGOA
BIOENERGY
CSR report 2014
08
Corporate
governance
page 56
ABENGOA
BIOENERGY
page 57
CSR report 2014 | 08 Corporate governance
G4-34, G4-35, G4-36, G4-37, G4-38, G4-39, G4-40, G4-41, G4-42, G4-43, G4-44, G4-45, G4-46, G4-47, G4-49, G4-50, G4-52, G4-53, G4-55, G4-LA12
Board of directors
Board meetings
The board of directors of Abengoa Bioenergy was established in July
2007. As of end of 2014 it was made up by a president, ten directors
and a non-board member secretary, ensuring a diverse and plural
composition.
The board’s committees meet as often as required to fulfill their duties,
and at least twice a year. The meetings are called by the president, either
on its own initiative or upon request of any of its members. Committee
meetings are valid whenever all its members are present and they decide
to hold a committee meeting. However, if a member cannot attend a
meeting he can delegate his/her vote on any other director.
Javier Benjumea Llorente
President
Javier Garoz Neira
CEO
Manuel Alejandro Blanco Losada
›› Director
›› Appointments and compensation
committee
›› New technologies committee
Juan Verde Suárez
›› Director
committee
Javier Rupérez Rubio
›› Director
committee
›› Audit committee
Marcos Ramírez Silva
›› Director
Luis Solana Madariaga
›› Director
committee
Heather R. Zichal
›› Director
Santiago Seage Medela
Director
Manuel Sánchez Órtega
Director
Salvador Martos Barrionuevo
Non-board member secretary
Decisions shall be approved by a majority vote of attending directors.
The board’s committees are made up by three non-executive directors
designated by the board of director for a period not longer than four
years. The members’ mandate can be renewed for one period of the
same duration.
The secretary of the board of directors acts as secretary of the committee.
Board meetings
›› Appointments and compensation committee
Appointments and compensation
The tasks and competences of the appointments and compensation
committee are the following:
›› Reporting to the board of directors appointments, reelections,
cessations and compensations of the board and its members, as
well as the general compensation and incentive policy for board
members and senior managers.
ABENGOA
BIOENERGY
page 58
G4-34, G4-35, G4-36, G4-37, G4-38, G4-39, G4-40, G4-41, G4-42, G4-43, G4-44, G4-45, G4-46, G4-47, G4-49, G4-50, G4-52, G4-53, G4-55
›› Providing previous reports on all the proposals submitted by
the board of directors to the general shareholder meeting for
appointment, retirement of resignation of board members including
the cases of cooptation by the board of directors.
›› Drafting an annual report of the activities of the appointment and
compensation committee’s activities.
›› Assessing the competency, knowledge and experience required for
board members the board; defining the aptitudes and skills required
from candidates to fill vacancies, and assessing the time and
dedication required for proper performance of their obligations.
›› Submitting proposals to the president on appointments and
dismissals of senior managers of the board.
›› Reporting on director and senior management compensation policy.
›› Reporting to the board on the individual compensation of each
director and the approval of the agreements entered into by the
company with each director.
›› Ensuring compliance with the compensation policy established by
the company.
›› Advising the president or CEO, especially on matters connected to
executive directors and senior managers.
›› Analyzing the proposals made by directors in order to take into
account potential candidates to fill vacancies in the board, as well as
potential candidates for vacant positions in the company
Appointments and compensation
›› Mr. Juan Verde Suárez (president)
›› Mr. Javier Rupérez Rubio
›› Mr. Luis Solana Madariaga
›› Mr. Manuel Alejandro Blanco Losada
Audit committee
The tasks and competences of the audit committee are the following:
›› Reporting annual accounts as well as any quarter and half-year
financial statements that have to be submitted to the parent
company, shareholders, financial institutions, public and private
organizations, etc.; such reports shall include information on internal
control systems, control of compliance through internal audits, and,
where applicable, accounting criteria.
›› Reporting to the board any changes in accounting criteria, including
any on and off-balance sheet risks.
›› Providing information at the general shareholder meeting on any
matter raised by shareholders within their area of competence.
›› Proposing to the board of directors the appointment of external
auditors.
›› Supervising internal audits. The committee shall have full access
to the internal audit and shall be heard during the selection,
designation, renovation, dismissal and appointment processes of its
manager and in the establishment of his/her compensation. It shall
also report the budget of this department.
›› Being aware of the corporate financial reporting process and the
internal control system processes.
›› Meeting with external auditors to receive information on any
matters that may cause them to enter into a conflict of interests, as
well any other issue related to the implementation of the financial
auditing process.
›› Summoning any other board members deemed appropriate to
committee meetings, and providing them with information on the
agreements made by the audit committee.
›› Drafting an annual report of the audit committee’s activities, which
shall be included in the management report.
ABENGOA
BIOENERGY
page 59
G4-34,G4-35, G4-36, G4-37, G4-38, G4-39, G4-40, G4-41, G4-42, G4-43, G4-44, G4-45, G4-46, G4-47, G4-52, G4-53, G4-55
Audit committee
›› Mr. Javier Rupérez Rubio (president)
›› Mr. Marcos Ramírez Silva
›› Mr. Luis Solana Madariaga
›› Ms. Heather Zichal
New technologies committee
The tasks and competences of the new technologies are the following:
›› Reporting to the board of directors on the status of new technology
developments in biofuels.
›› Providing information in advance on all proposals the board of
directors may submit to the general shareholder meeting for
decisions on new applicable technologies.
›› Reporting and advising on new technology investment policies.
›› Drafting an annual report of the activities of the new technologies
committee’s activities and of new developments in the field.
New technologies committee
›› Mr. Luis Solana Madariaga (president)
›› Mr. Marcos Ramírez Silva
›› Mr. Javier Rupérez Rubio
›› Mr. Javier Verde Suárez
›› Mr. Manuel Alejandro Blanco Losada
›› Ms. Heather Zichal
The tasks and competences of the appointments and compensation
Comittee are the following:
›› Reporting to the board of directors appointments, reelections,
cessations and compensations of the board and its members, as
well as the general compensation and incentive policy for board
members and senior managers.
›› Providing previous reports on all the proposals submitted by
the board of directors to the general shareholder meeting for
appointment or cessation of board members including the cases of
cooptation within the board of directors.
›› Drafting an annual report of the appointment and compensation
committee’s activities.
›› Assessing the competency, knowledge and experience required at
the board; defining the skills and tasks required from candidates to
fill vacancies, and assessing the time and dedication required for
proper performance of their obligations.
›› Reporting the appointments and dismissals of senior managers
proposed by the CEO to the board.
›› Reporting to the board on gender equality issues.
›› Reporting to the board on director and senior management
compensation policy.
›› Reporting to the board on the individual compensation of each
director and the approval of the agreements entered into by the
company with each director.
›› Ensuring compliance with the compensation policy established by
the company.
›› Advising the president or CEO, especially on matters connected to
executive directors and senior managers.
›› Analyzing the proposals made by directors in order to take into
account potential candidates to fill vacancies in the board, as well as
potential candidates for senior management positions.
ABENGOA
BIOENERGY
page 60
G4-51, G4-52, G4-53, G4-55, G4-SO3, G4-SO4, G4-SO5, G4-SO7
Compensation and other benefits
Transparency and fight against corruption
The total amount paid in 2014 for board membership to the directors of
the parent company accounted for € 262,000 in terms of compensation
and € 5,000 in terms of allowances. The company has not undertaken
any obligations or credits for any concept towards the members of the
board of directors at the end of the 2014 fiscal year.
Abengoa Bioenergy complies with the criteria and systems of Abengoa
regarding transparency and fight against corruption, and has decided to
include in its professional conduct code a specific statement of accession
to the United Nations convention against corruption approved by the UN
General Assembly in 2003.
Amounts paid to the board of directors (K€)
Allowances for attendance to
meetings and other benefits as
directors
Compensation for
membership to
committees of the board
of directors
Total
5
262
267
No advanced payments or credits have been made to the members of the
board of directors. Likewise, no obligations to them have been assumed
in the form of guarantees.
Additionally, in the 2014 fiscal year the compensation paid to the
company’s senior management (including compensation for their work as
senior managers of those members of the board of directors that are part
of the senior management of the company) accounted for € 3,878,000
(€ 3,023,000 in 2013).
In 2013 and 2014 there have not been any direct or indirect conflict of
interest situations according to the terms set forth in article 229 of the
Spanish Corporations Act.
The aim of this convention is to promote and strengthen measures aimed
at preventing and combating corruption more effectively; promote,
facilitate and support international cooperation and technical assistance
in the prevention of and fight against corruption, including the recovery
of assets; promote integrity, accountability and due management of
public affairs and public assets.
Last year the internal audit department of Abengoa Bioenergy issued
99 audit reports, including results of reviews and analyses of risks
related to corruption in the companies classified as material. Likewise,
seven legal audits have been carried out, and although they do not
include specific analysis and risk control systems, they complement
audit reports and help to detect situations that may be classified as
corruption. Abengoa Bioenergy has not recorded, through its information
sources, any incident related to corruption; there have been no incidents
related to monopolistic or anti-competition practices and no significant
sanctions have been imposed in 2014 for non-compliance with laws and
regulations.
ABENGOA
BIOENERGY
page 61
G4-52, G4-53, G4-55, G4-PR9, G4-SO3, G4-SO4, G4-SO5, G4-SO6, G4-SO7, G4-SO8
Abengoa Bioenergy has not acceded to any standard or voluntary code
on marketing, advertising or other promotional or sponsorship activities,
but it has a demanding and strict internal control procedure for external
communication, which is set forth in the company’s internal regulations.
This control system implies the implementation of a chain of internal
authorizations that ultimately reach the company’s president. All relevant
department managers must authorize and complete all information to
be disclosed, which ensures that all the communication issued by the
company complies with the corporate principles and values and do not
infringe its code of conduct.
Public position of the company
Abengoa Bioenergy becomes involved in scientific technological and
cultural events that are of interest for the company and are held in the
areas, cities or regions where the company operates.
Likewise, lobbying or similar activities are carried out only by supporting
the professional associations existing in each of the geographic areas
where Abengoa Bioenergy operates.
No contributions, either in cash or in kind, have been made in 2014
to political parties or institutions connected to them in any of the
geographical areas in which Abengoa operates.
No corruption incidents have been detected in the activities of the
company in this field. There have been no incidents related to
monopolistic or anti-competition practices. In the reporting year no fines
or sanctions have been recorded for non-compliance with laws and
regulations.
Risk control and high management
standards
Being a subsidiary of Abengoa, Abengoa Bioenergy’s risk management
structure is based on three fundamental pillars:
›› Common management systems, which are useful to mitigate
business risks.
›› Internal control procedures on financial reporting designed
according to SOX (Sarbanes-Oxley Act), to mitigate the risks
associated to financial information reliability.
›› Abengoa’s universal risk model, is used to measure the company’s
risk exposure based on its likelihood and its impact on all categories
(strategic, legal and operational risks). It provides online risks maps
by means of automatic connection to information in real time.
These elements make up an integrated system allowing for proper
management of risks and controls at all organizational levels. It is a life
system that is undergoing constant changes to stay aligned with the
business reality.
Abengoa Bioenergy has implemented its internal control system of
financial reporting according to the US Sarbanes Oxley (SOX) standard.
Moreover, it has a risk management system whose design and effective
implementation has been carried out under ISO 31000, and has been
audited both at corporate level and for the different business groups, as
in the case of Abengoa Bioenergy. On the other hand, Abengoa has an
anticorruption compliance system in addition to the one mentioned in the
strategy section above, a Corporate Social Responsibility Strategic Plan
(PERSC) with the 2020 horizon and impact reduction targets.
ABENGOA
BIOENERGY
page 62
G4-14
Risk mitigation plans
A corporate social responsibility (CSR) risk assessment was carried out
in 2014 in order to identify, supervise and control potential risks in
CSR matter affecting Abengoa Bioenergy’s facilities. This assessment
is carried out on an annual basis to find out the specific risks affecting
each of the facilities considered to be material. In 2014, seven facilities
of Abengoa Bioenergy were considered to be material for the purpose of
such assessment: four of them are located in the United States (Abengoa
Bioenergy Biomass of Kansas, Abengoa Bioenergy Indiana, Abengoa
Bioenergy Illinois and Abengoa Bioenergy Corporation-York) and two in
Europe (Ecocarburantes Españoles and Abengoa Bioenergy France).
The risk analysis comprises a set of 27 risks related to relevant aspects in
responsible business management, such as labor practices, occupational
health and safety, supply chain, social commitment and local impact,
environmental and ethical management, integrity and compliance. These
27 risks have been assessed by plant managers and their stakeholders
by means of a questionnaire, in which risks are rated as high, medium
and low both internally and externally, and we have requested additional
information the reason for such rating.
Abengoa Bioenergy established plans with mitigation and prevention
measures for the risks that have been identified. A risk mitigation plan
was implemented in 2014 in the Abengoa Bioenergy Netherlands plant,
which included the following actions:
›› Internal meetings to discuss corporate social responsibility matters,
such as environment, safety and health, as well as to enhance
knowledge on the company’s internal NOC rules among Abengoa’s
employees.
›› Dialogue plan with employees to design mitigation actions for risks
related to workers.
›› Meetings and external lectures on the company’s activities, the
importance of biofuels for the preservation of the environment, etc.
›› Leisure time activities with employees outside of the plant to
enhance community spirit, such as barbecues, sports evenings,
family days and special open doors days for employee relatives.
›› Open doors days for groups from local communities, schools and
University of Rotterdam students, to introduce them to Abengoa’s
commitment to the environment.
›› Improving the company’s perception through news pieces in local
media, reports and publication of data and results highlighting
the benefits the company provides to the local and the overall
environment.
›› Abengoa Bioenergy Netherlands has promoted an employee
stabilization and retention plan to retain talent, including conversion
of temporary employment contracts into indefinite contracts,
retention plans for critical positions and a bonus plan.
›› To mitigate the risks identified in the field of occupational health
and safety and within the Rainbow project, in addition to training
actions and emergency plans, Abengoa Bioenergy Netherlands
›› To address the risk of negative perception by the community due
to the odor problem, and to improve plant performance a RTO
(thermal oxidation equipment has been installed. It is already
in operation and work to close fermentation valves has been
completed in 2014.
The purpose of these plans is to mitigate the risks that have been
identified and structure the dialogue between the company and the main
opinion-makers in the risk matters that have been identified.
ABENGOA
BIOENERGY
CSR report 2014
09
People
page 63
ABENGOA
BIOENERGY
page 64
CSR report 2014 | 09 People
G4-57
Dialogue channels
Abengoa Bioenergy’s relationship with its stakeholders (employees, customers, suppliers, shareholders, society and local communities where the company
has operations) continues to develop through transparent and trust-based communication channels.
The key to ensuring the company’s stakeholders embrace its commitment to sustainable development and performance is communication.
The primary aim of Abengoa’s communication efforts is to strengthen the company’s relationship with, and uphold commitments to, all its stakeholders.
By achieving this aim, Abengoa and its stakeholder work together in pursuit of common interests, which is an essential part of addressing the present and
future challenges of the company.
Society:
commitment to meeting the
needs of present and future
generations through products
and services that ensure
sustainable development.
Local communities:
commitment to the
sustainable development and
growth of the communities
where Abengoa is present and
operates.
Shareholders:
Customers:
commitment to creating
sustainable value.
commitment to achieving
maximum satisfaction through
quality products and services.
Employees:
Suppliers:
commitment to attracting,
retaining and developing
talent and reconciling
professional and personal life.
commitment to maintaining
a supply chain that generates
the highest levels of trust and
mutual benefit.
ABENGOA
BIOENERGY
page 65
G4-57
Talking to our stakeholders
Abengoa Bioenergy is fully aware of the specific characteristics each of its stakeholders and
therefore establishes common and specific channels for dialogue in order to communicate
with each of them.
Company-stakeholder
dialogue channels
Stakeholder-company
dialogue channels
›› Abengoa’s and Abengoa
Bioenergy’s corporate websites
›› World Biofuels Conferences
›› Press advertising campaign to
defend biofuels
›› Public presentations
(roadshows)
›› Publication of quarterly reports
›› Quarterly presentation of
results via audio and video
systems accessible from
Abengoa’s website
›› Query space following the
presentation of results
›› Annual report
›› Press releases
›› Investor relations department
›› Shareholder mailbox
›› Satisfaction surveys
›› Public presentations (roadshows)
›› Meetings with analysts and
investors
›› Quarterly presentation of results
via audio and video systems
accessible from Abengoa’s
website
›› Query space following the
presentation of results
›› Investor visits to company
facilities
›› External whistleblower channel
›› Opinion surveys
›› Interviews
›› CSR mailbox
(rsc@abengoa.com)
Corporate social media:
Abengoa blog, Twitter,
Linkedin, Facebook, Youtube,
Instagram, Pinterest, Google +,
Slideshare
Abengoa blog, Twitter, Linkedin,
Facebook, Instagram, Pinterest,
Google +, Slideshare
Stakeholder
Employees
Shareholders
Stakeholder
Company-stakeholder
dialogue channels
Stakeholder-company
dialogue channels
›› Abengoa’s and Abengoa
›› Corporate intranet: Connect@
›› Employee self-service
›› Welcome manual
›› Two-monthly gazette
›› Human Resources
spokespersons
›› Health and Safety Committee
›› Works council
›› Equal treatment and
opportunities committee
›› Departmental seminars and
talks
›› Mailings
›› People Center: IT tool for
employees
›› Colabora: internal cross
communication tool
›› Online training through
›› Campus Abengoa
›› Corporate and business group
websites
›› Stakeholder mailbox
›› Corporate intranet: Connect@
suggestion box
›› Employee self-service
›› Satisfaction and work climate
surveys
›› Abengoa Easy Management
(AEM) computer application
›› Colabora: internal cross
communication tool
›› Online training
›› Assessment surveys. 360º
manager feedback program
›› Employee social welfare
›› Human Resources spokespersons
›› Health and Safety Committee
›› Works council
›› Equal treatment and
opportunities committee
›› Open days
›› Evaluation interviews
›› CSR mailbox
(rsc@abengoa.com)
ABENGOA
BIOENERGY
page 66
G4-57
Local communities
Company-stakeholder
dialogue channels
Stakeholder-company
dialogue channels
›› Abengoa and Abengoa
›› Structured procedure
for measuring supplier
effectiveness
›› Security management system
tool
›› Regular visits to suppliers
›› Satisfaction surveys
›› Structured procedure for
receiving supplier information
and opinions
›› Abengoa Easy Management
(AEM) computer application
›› Security management system
tool
›› Interviews
›› CSR mailbox
(rsc@abengoa.com)
Slideshare
›› Abengoa and Abengoa
›› Focus-Abengoa Foundation
website
›› Corporate Social Responsibility
Department
›› Meetings with NGOs and
education institutions
›› Open days
›› Fairs, forums and conferences
Slideshare
›› Communication Department
Department
›› Meetings with NGOs and
›› Open days
›› Corporate blog
›› CSR mailbox
(rsc@abengoa.com)
›› Evaluation of social action
program beneficiaries
›› Interviews
Stakeholder
Society
Suppliers
Stakeholder
Company-stakeholder
dialogue channels
Stakeholder-company
dialogue channels
›› Corporate website
Department
›› Focus-Abengoa Foundation
website
›› Meetings with NGOs, media
and education institutions
›› Open days
Department
›› Meetings with NGOs, media and
›› Open days
›› CSR mailbox
(rsc@abengoa.com)
›› Interviews
Slideshare
ABENGOA
BIOENERGY
page 67
G4-9, G4-LA1, G4-LA12
8.1. Our team
Our employees
At the end of 2014, Abengoa Bioenergy had a workforce of 4,465
employees, distributed among three geographical areas in which the
company operates: the United States, Europe and Brazil. The average
critical turnover was 0.79 %.
Workforce by age group
Workforce 2014
Region
%
Total
Europe
15 %
687
US
10 %
462
Brazil
74 %
3,316
Male employees
16 %
720
Male workers
69 %
3,102
Female Employees
8%
336
Female Workers
7%
307
Europe
0.15 %
1
US
0.65 %
3
Brazil
0.00 %
0
Position
Turnover (critical)
*NOTE: The figure includes trainees. The number of male employees, excluding trainees, would
be 698 and the number of female employees 303.
<20
20-30
31-40
41-50
51-60
>60
Europe
3
163
323
135
53
10
United
States
1
116
144
104
78
19
Brazil
61
1,016
1,062
699
412
66
ABENGOA
BIOENERGY
page 68
G4-DMA, G4-10, G4-EC6, G4-LA1, G4-LA5, G4-LA7, G4-LA12, G4-HR5
Breakdown by region and gender
Country
Men
Women
Senior
managers
Line
managers
Engineers
and
graduates
Assistants
and
professionals
Workers
Trainees
Senior
managers
Line
managers
Engineers
and
graduates
Assistants
and
professionals
Workers
Trainees
Europe
37
52
111
32
213
18
6
36
72
58
23
29
United
States
22
44
65
25
216
4
4
7
18
29
24
4
Brazil
6
41
111
152
2,673
0
0
8
19
46
260
0
In 2010, Abengoa launched its external whistleblower channel to
complement the existing internal whistleblower channel. This channel is
used to report any irregularity, breach or conduct contrary to the ethics,
law and rules governing the organization. Abengoa adheres to the US
Foreign Corrupt Practices Act (FCPA), which regulates the activities of
all companies operating in the US and criminalizes companies, officers,
directors, employees and representatives of these companies that pay,
promise, offer or authorize the payment of anything of value to any
foreign official, foreign political party, officials of public international
organizations, etc. in order to obtain any improper advantage.
Health and safety
Abengoa Bioenergy´s occupational risk prevention policy complies with
the various health and safety regulations in force in the countries where
the company operates, while at the same time promoting the integration
of occupational risk prevention as part of the company’s overall strategy
through awareness-raising and training.The assessment of risks associated
to the different activities of the company leads to specific action plans
aimed at preventing occupational accidents and/or diseases among our
employees. Thus, in case of detection of any substantial risk immediate
corrective action is implemented in work processes or in facilities.
In accordance with the company’s prevention policy and common
management systems, all Abengoa Bioenergy companies have set up
occupational risk prevention and occupational health committees, led by
the management in order to integrate occupational risk prevention at all
levels of the organization. In 2012, the company set up an occupational
risk prevention management committee, which plays a key role in
ensuring optimal communication and coordination in this matter in all the
geographical areas where the company operates.
Main achievements in the United States
In 2014, the Abengoa Bioenergy of Illinois plant completed 365 days
without lost time or accidents and without injuries; the total number of
days without incidents has reached 468 (still ongoing).
Since the commissioning of the plant in 2010, Abengoa Bioenergy of
Illinois has worked carefully to improve its safety performance. Various
safety tactics have been implemented and have been welcomed by
employees and all of them were completed at the expected deadlines.
Main achievements in Europe
The 2014 COASHIQ award for excellent occupational safety in the
chemical industry was awarded to Abengoa’s Ecocarburantes Españoles
facility.
ABENGOA
BIOENERGY
page 69
G4-10, G4-EC6, G4-LA5, G4-HR5
Due to the excellent results achieved by Ecocarburantes Españoles in the
field of occupational safety in 2013, Abengoa Bioenergy was one of the
chemical companies receiving an award at the event held on June 10th
in Girona during the 87th general meeting of COASHIQ. The COASHIQ
awards recognize the work of safety and health departments and are
a clear reflection of best practices by the departments in charge of
preventing occupational accidents.
with direct application in occupational risk prevention, covering from
legal provisions to practical cues; the second provides basic instruction on
how to act in case of accidents and/or emergencies.
Communications
In the corporate context, communication is the matrix which brings
together all organizational practices. Strategic management of health and
safety communications requires a coherent integration of the different
contents, programs and tools existing in the company. An efficient flow
of information on occupational risk prevention allows employees to gain
a consistent perception of what safety means and prevents the circulation
of contradictory messages within the organization.
Risk assessment
In order to prevent or minimize risk situations inherent to our activities
it is necessary to have the best possible knowledge on the nature and
severity of the risks that may arise at work, as well as the prevention
measures that must be implemented to control them.
David Galindo, Manager´s Plant of Ecocarburantes Españoles
received a diploma from COASHIQ.
Training and preventive culture
The company recognizes the necessity to create and develop occupational
risk prevention culture and awareness; therefore, it has included in
its training plans a specific section pertaining to occupational safety
comprising of both generic and specific material. All our collaborators
are include in the training plans that have been specifically designed to
suit the job they perform at the company. There are two main groups of
training courses: the first one focuses on providing specific knowledge
Procedures
Prevention plans are designed to prevent the occurrence of accidents.
They include a series of procedures and instructions that describe how
to perform activities or tasks in a safe manner. These documents are
the pillars of preventive action and build on the approved corporate
occupation health and safety policy. Therefore, their dissemination and
correct implementation are key to ensuring effectiveness.
ABENGOA
BIOENERGY
page 70
G4-10, G4-51, G4-52, G4-53, G4-EC6, G4-LA3
Rainbow Project
With the start of the Rainbow project in 2013, a series of action
lines were determined that have been continued in 2014, seeking to
strengthen safety in Abengoa Bioenergy’s industrial facilities; an initiative
that continued throughout 2014. The project’s scope included the
company’s three key geographical areas: Brazil, Europe and United States.
As a part of the project, each site implements specific actions ranging
from physical changes in facilities, to implementation of procedures, or
training plans for employees that focusing on furthering health and safety
measures.
The implementation of the Rainbow Project in Abengoa Bioenergy
Netherlands has led to the establishment of the necessary structures
in the field of occupational health and safety resulting in the following
important improvements in 2014:
›› Elimination of specific risks associated to safety Capex actions:
improvements in the access to facilities to prevent risk of falling.
›› Completing and updating the P&IDs in the facilities.
›› Performance of Hazop and SIL studies in the sections required by
occupation safety authorities.
›› Improving the access control and surveillance system.
›› Completing industrial safety signaling.
›› Review and optimization of the MOC (Management of change)
process.
›› Legal inspections applicable to equipment and facilities.
›› Review and optimization of the Lock Out-Tag Out (LOTO) procedure.
Abengoa Bioenergy’s labor policy and commitment to
employees
In accordance with the corporate social responsibility commitments
acquired through adherence to the United Nations Global Compact in
2002, and the undertakings made under the organization’s own Code
of Conduct, Abengoa abides by a Corporate Social Responsibility policy
integrating a management system inspired by the SA8000 international
standard, which guarantees on-going improvement in the company’s
social responsibility performance. The commitments under the standard
include:
›› Integrating the management of occupational social responsibility in
the company’s corporate strategy.
›› Guaranteeing compliance with applicable legislation and other
commitments in this area.
›› Promoting the principles of the Global Compact in the company’s
sphere of action: partners, suppliers and contractors.
›› Fostering and promoting the personal and professional development
of the people in Abengoa, promoting the creation of suitable
working conditions and on-going training. Recruiting, hiring,
training and promoting the most qualified individuals, regardless
of race, religion, color, age, sex, marital status, sexual orientation,
national origin and physical or mental disability. Assuring an
adequate preventive culture in accordance with the occupational
risk prevention policy.
›› Creating the necessary conditions to allow employees to achieve a
work-life balance. In 2014, 154 paternity leaves and 41 maternity
leaves were requested. Of these, 100% of the men and 98% of the
women who requested leave have returned to work.
›› Assessing and reviewing the company’s social performance,
reporting transparently on corporate social responsibility matters,
and implementing on-going improvement programs.
›› Abengoa Bioenergy is certified by Social Accountability International
(SAI) under the SA 8000 international standard in all countries in
which it operates: United States, France, Spain, Netherlands and
Brazil.
ABENGOA
BIOENERGY
page 71
G4-DMA, G4-10, G4-51, G4-52, G4-53, G4-EC6, G4-LA9, G4-LA10
Professional Development
The environment in which any company currently operates presents
characteristics and peculiarities marked by constant evolution and change,
requiring them to become more competitive in order to develop. In order
to make a difference, Abengoa Bioenergy considers it a priority to turn this
competition into one of the determining parameters to ensure innovation,
flexibility and responsiveness at all times.
The competence management model, as Abengoa Bioenergy’s HR (Human
Resources) management model, responds to the company’s need to create
value and clear competitive advantages through people. Since competitive
advantage is difficult to imitate, its employees are one of the most important
assets in order to maintain the company’s market leadership trend; hence,
attracting, creating and retaining talent is a top priority. In turn, its entire
internal and external selection process is based on this model.
Therefore, Abengoa Bioenergy considers training to be a systematic and ongoing process through which it aims to develop, enrich, enhance or modify
the conceptual, attitudinal and procedural skills of its employees through
training activities. In terms of skills management, the training is designed
to improve the technical and general skills of people at work by enriching
knowledge, developing skills and strengths and improving capabilities. The
excellent performance of an organization requires on-going training and
updating. To achieve this, Abengoa Bioenergy is making a substantial effort
and dedicating resources to training its personnel in the different areas where
such training is required.
Finally, Abengoa Bioenergy is involved in these management processes
always from a position of respect for the protection of human rights and
labor rights, respect for freedom of association and the effective recognition
of the right to collective bargaining, the elimination of all kinds of forced
or compulsory labor, the effective abolition of child labor and, finally, the
elimination of discrimination regarding employment and occupation.
In this way, it aligns its labor practices and the professional performance of
its employees with the Universal Declaration of Human Rights of the United
Nations and its protocols, as well as existing international agreements on
social rights.
Training
Training is essential for the development of Abengoa Bioenergy’s people.
For this reason, every year a training plan is designed to meet staff training
needs, combining attendance-based and online methodologies in order to
adapt to the training requirements of workers.
Abengoa’s training plan covers all the necessary topics required to train a
team of highly qualified professionals committed to the Abengoa culture.
Noteworthy programs include the following:
›› Corporate training: aimed at conveying the Abengoa culture: its values,
principles and management model. The corporate topics address
key issues such as the company’s strategy, risk model, businesses and
leadership vision.
›› General training: aimed at improving each employee’s professional skills
in any of the disciplines related to his or her job.
›› Occupational risk prevention training: to increase awareness at different
levels on the importance of promoting and respecting occupational safety
conditions and using protective equipment.
›› Environmental management training: to help employees understand the
organization’s commitment to sustainability.
›› Environmental performance training: relating to the systems supporting
the company’s environmental performance: Integrated Sustainability
Management System (ISMS) and ISO 14064. Online training on the GHG
Inventory.
›› Language training: languages are considered to be a key element in a
continually growing global environment.
›› Internships: implemented through the trainees program.
ABENGOA
BIOENERGY
page 72
G4-DMA, G4-51, G4-52, G4-53, G4-EC6, G4-LA9, G4-LA10, G4-LA11
Training
Training
Corporate training
General training
Language training
Risk prevention training
Internships
Total
Participants
Hours
7,382
26,304
16,530
110,280
1,547
17,244
79,240
336,996
63
66,598.4
104,762
490,824
In the above chart, the value for internships include the trainee
employees. In 2014, the average number of training hours was 82.7
hours, excluding internships and trainees.
Abengoa Bioenergy has an executive development program and a
specific system for performance assessment based on the 360-degrees
methodology. In 2012, some 100 professionals from the company were
taking part in the program.
The company also has a competence management model in place at its
companies allowing the integration of individuals in accordance with
the strategic objectives of each company, their annual performance
assessment and their development. In 2014, around 28 % of employees
took part in a performance management program.
The objectives set for this year have been achieved, resulting in complete
and balanced training activities in line with the company’s strategic
objectives, with a clear impact on the company’s commitment to the
environment, social responsibility, sustainable development and human
rights. The concern for informing and training employees and their
families on serious illnesses is constant. Fighting occupational stress is one
of the cornerstones of our training program.
Professional programs
In its professional development model, Abengoa Bioenergy has designed
a set of career paths based, in turn, on training plans that aim to develop
highly-qualified professionals in key business disciplines, aligned with the
corporate culture and best market practices. The following programs are
currently being developed: project managers program, project supervisors
program, industrial managers program, technological managers
program, management skills program, management development
program, management communication program, intensive management
communication program, worksite managers program, management
of direct implementation, alumni program and Abengoa international
management forum.
Executive development program
Independently of the specific professional programs, Abengoa Bioenergy
needs a program for key individuals to ensure that it has a highly skilled
team capable of undertaking strategic challenges at any given time. For
this purpose, it has designed a special executive development program.
Employees receive special training that allows them to broaden their
executive competencies and skills. This program responds to two needs:
the identification of potential leaders and the development of the
executive talent of the leaders of tomorrow.
The executive development program focuses on making the role of
manager attractive and within reach of only the most talented individuals
who are able to develop the capabilities, skills and attitudes required to
undertake such tasks with excellence.
Future goals and challenges
›› Executive Training Program. Since 2012, continuing its strong
commitment to improving manager training programs, the company
has adopted a new focus on contents and quality improvement,
supported by collaboration with the best business schools.
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›› Strengthen Abengoa University’s alumni community.
›› Continue to strengthen and deploy the concept of flexible
compensation, broadening its scope to include new companies and
expand the range of products offered.
›› Strengthen the scholarship program. Internships are the ideal vehicle
for attracting and developing future professionals.
›› Online training: strengthen and develop new methodologies,
making them more accessible, in order to better cater for current
mobility needs.
›› Occupational risk prevention: further progress a culture of zero
accidents, and establish procedures to enable the global exchange
of experiences, goals and improvement measures.
›› Occupational social responsibility (OSR): deepen our commitment to
the social responsibility management system, in accordance with the
SA 8000 international model, which ensures on-going improvement
in the company’s social performance.
Abengoa Bioenergy works tirelessly in health and safety matters to
guarantee the best conditions in the performance of its activities. Its
companies have received OHSAS 18001 Standard Certification. In
this respect, the company is currently making improvements to its
management systems in order to maximize the reduction of collateral
risks for its employees. To strengthen the commitment and awareness
of its entire workforce, each company in the group provides health and
safety training to each employee in order to adapt their behavior and
strengthen compliance with and knowledge of safety standards and their
application.
Occupational accidents
During 2014, the total percentage of absenteeism at Abengoa Bioenergy
(disciplinary proceedings, illnesses, accidents and justified and unjustified
absences) was 2.68 %. Absenteeism deriving from common illness
was 1.66% whereas total absenteeism due to industrial accidents was
0.11 %. The occupational accident rates in Abengoa Bioenergy are
remarkably low compared to figures for similar sectors and taking into
account the nature of the company’s activities. Thus, the absenteeism
frequency rate is below the average values for the industry in each
geographical area (number of lost-time accidents per million hours
worked); and the seriousness of accident rate is less than 0.15 in Europe
and the US (number of working days lost for every thousand hours
worked).
Every year, Abengoa Bioenergy offers all its employees courses on the
common management systems (NOC), in which the rules governing the
company are explained and information on updates is provided, with
special emphasis on anti-corruption policies and the code of conduct.
There is a computer application based on these common management
systems that all users can access at any time and which they can use to
broaden their knowledge of the organization’s anti-corruption policies
and procedures. Likewise, Abengoa’s professional code of conduct can be
consulted both on the intranet, to which all employees have access, and
on the company’s public website. Modifications to this code are notified
to the entire organization without exception or delay.
The involvement and commitment of all employees to the on-going
improvement of Abengoa’s risk prevention system continue to be the
cornerstone of its management system.
In order to evaluate the occupational health and safety conditions in
which the different activities are conducted, visits were carried out to
workplaces and works. Reports on deficiencies and anomalies detected
are generated in the Abengoa Easy Management (AEM) software
program.
For the company, combating occupational stress and preventing illnesses
suffered by employees as a result of their activities is a priority and a
concern that the company attempts to prevent and reduce through
training programs, informative lectures and recommendations on healthy
habits in the company newsletter.
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Abengoa’s remuneration policy
Abengoa Bioenergy had a total of 4,465 employees (Dec 31, 2014), of
which 3,589 were permanent employees, 821 had temporary contracts
and 55 were trainees.
contribution made by Abengoa Bioenergy in countries where it operates
is the professional and talent development of its executives, attracting
and retaining the best human resources. Most of the company’s
executives are drawn from the local communities where significant
operations are carried out.
Minimum wage
Country
Minimum wage
Local managers
% Minimum wage
Graduate
Administrative
Operator
Graduate
Administrative
Operator
Region
Total
Local
%
Europe
43
43
100 %
24
22
92 %
Spain
9,034
30,301
16,926
14,284
335
187
158
United States
France
17,345
30,769
19,780
18,919
177
114
109
Brazil
6
3
50 %
Netherlands
17,942
31,426
27,477
17,942
175
153
100
Total
73
68
93 %
United States
10,985
43,866
26,090
22,176
399
238
202
3,015
4,910
7,242
3,573
163
240
119
Brazil
Note: the minimum wage figures for the US have been calculated taking into account a sample
of states in which Abengoa Bioenergy is present.
* Figures for Spain have been calculated on the basis of 14 annual salary payments. Figures
for the US and France have been calculated on the basis of 12 annual salary payments and for
Brazil on the basis of 13.3 annual salary payments.
The ratio between the standard starting salary paid by Abengoa
Bioenergy and the local minimum wage is substantially higher in those
countries where the number of employees with higher status within
the organization is greater, taking into account different professional
categories. There are no differences between the initial salary figures
for men and women occupying positions of equal responsibility, as both
are based on the pay scales established in accordance with collective
bargaining agreements or the internal salary scales at Abengoa Bioenergy,
which make no distinction on the basis of gender. Another major
In 2014, Abengoa Bioenergy’s information channels reported no
discrimination-related incidents, nor was there any record of incidents
involving infringements of the rights of indigenous people.
In addition to the direct economic value generated and distributed by
Abengoa Bioenergy among its stakeholders, the company also generates
relatively significant indirect economic value in those societies where it
operates, although these effects are very difficult to quantify, despite their
undoubted importance.
The company pursues a talent retention strategy to be able to represent
the business’ basic pillars, which undoubtedly has a positive impact
because it provides a great stability. Proof of it are the training itineraries
and plans that are provided every year to all employees, teaching them
the knowledge and specific, technical and generic skills need to make a
better use of their competences.
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Code of Conduct
As an Abengoa subsidiary, Abengoa Bioenergy follows the same code of
conduct as its parent (see the website www.abengoabioenergy.com).
Honesty, integrity and character of the employees, managers and
directors of Abengoa is fundamental for the company’s reputation and
success.
This code of conduct governs all work actions and relations of the
employees, managers and directors of Abengoa with clients, potential
clients, colleagues, competitors, governmental bodies, media and all
other people and institutions the company relates to. Where this code of
conduct refers to Abengoa, Abengoa S.A. and all its subsidiaries shall be
included in such reference.
This code of conduct:
›› Demands the highest standards of honor and ethical conduct,
including appropriate and ethical procedures for dealing with real or
potential conflicts of interest in professional and personal relations.
›› Requires communication to be full, fair, precise, timely and
intelligible in the regular reports that Abengoa is required to submit
to governing bodies, as well as in all other communications made by
the company.
›› Requires compliance with applicable laws, standards and
regulations.
›› Addresses real or potential conflicts of interest and provides
guidance for employees, executives and directors to communicate
the aforementioned conflicts to Abengoa.
›› Addresses improper use or poor application of Abengoa’s assets and
business opportunities.
›› Demands maximum confidentiality and fair treatment inside and
outside Abengoa.
›› Demands immediate internal communication of non-compliances
with this code of conduct, as well as the appropriate communication
of any illegal conduct.
Social benefits
For Abengoa Bioenergy it is essential to achieve a pleasant work environment
underpinned by a strong relationship with its employees. For that reason, the
company provides its people with a range of social benefits in support of a
good work-life balance, bolstering the commitment between company and
employee. The most important company benefits are:
››
››
››
››
››
››
››
››
Life and accident insurance.
Canteens at workplaces with large numbers of employees.
Flexible pay for Abengoa group employees in Spain.
Workplace gym with all the necessary equipment for physical
exercise and areas for group activities in Spain.
Subsidized childcare facilities at the main work centers.
Medical department to improve employee healthcare coverage, at
workplaces with more than 300 employees.
Pension plans: they are designed taking into account the specific
characteristics of each country in which the company operates, in
accordance with applicable local regulations.
Free shuttle service between the Palmas Altas Campus and various
parts of the city of Seville.
Protection of human rights
As an Abengoa subsidiary, Abengoa Bioenergy (a party to the Global
Compact since 2002) works to ensure compliance with the 10 basic
principles set forth in the aforementioned compact.
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These ten principles derive from universal declarations and conventions:
two on human rights, based on the Universal Declaration of Human
Rights; four on labor, inspired in the ILO declaration on fundamental
principles and rights at work; three on the environment, with the support
of the Rio declaration on environment and development; and one on
fighting corruption, based on the United Nations Convention against
corruption.
Respect for the fundamental rights of individuals and their environment
is the main pillar of Abengoa, Abengoa Bioenergy and its subsidiaries in
their activities:
›› Support and respect the protection of internationally proclaimed
rights, within their sphere of influence.
›› Business should make sure that they are not complicit in human
rights abuses.
›› Uphold the freedom of association and the effective recognition of
the right to collective bargaining.
›› Uphold the elimination of all forms of forced and compulsory labor.
›› Uphold the elimination of all forms of child labor.
›› Uphold the elimination of discrimination in respect of employment
and occupation.
›› Support a precautionary approach to environmental challenges.
›› Undertake initiatives to promote greater environmental
responsibility.
›› Encourage the development and diffusion of environmentally
friendly technologies.
›› Work against corruption in all its forms, including extortion and
bribery.
As an international business, Abengoa Bioenergy advocates sustainable
growth based on respect for human rights within the organization,
throughout its value chain and in its area of influence. Accordingly, the
company firmly rejects forced labor and child labor, and supports all
initiative aimed at eradicating these problems.
Aware of its responsibility to respect human rights, Abengoa Bioenergy
evaluates and reviews its suppliers, measuring their impact on human
rights.
In this respect, and given the importance the organization attaches to
respect for human rights (HR), it also provides training on human rights
to subcontracted security personnel, with 58% of personnel receiving
human rights training during the year.
In 2014, no complaints relating to human rights were received through
formal claims channels and there were no reports of activities or incidents
involving risks in relation to discrimination, freedom of association, child
labor or forced labor.
To ensure the protection of employee rights, all persons within company
are covered by supra-company labor regulations independently of the
nature of their activities or the countries where these activities are carried
out. Furthermore, pursuant to legislation in force in each country, special
emphasis is placed on collective bargaining agreements in the industry,
territory or the agreements adopted by the company itself, signed with
the workers, their union representatives or trade unions accordingly.
Abengoa Bioenergy respects and supports the free association of
workers, which the company regards as an inalienable right. Through
on-going dialogue with workers’ representatives, Abengoa Bioenergy
keeps employees informed on all matters that may be of their interest.
Likewise, the company also guarantees employees’ basic labor right to
be informed prior to any structural or organizational changes that take
place in the company, either individually or through their representatives,
and in accordance with the notification periods prescribed by law and in
collective bargaining agreements. Abengoa Bioenergy, through Abengoa,
abides by these principles in its labor practices and ensures that its
employees’ actions comply with the United Nations universal declaration
of human rights and its protocols. In this sense, training is one of the
most powerful tools available to Abengoa Bioenergy to prevent incidents
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involving human rights violations since it invests in this training to ensure
that employees are aware of Abengoa’s corporate culture and the values
of the organization contained in its code of conduct.
8.2. Communities
Policy, strategy and objectives
Abengoa Bioenergy is committed to growing alongside the communities
in which it operates by strengthening its ties with those communities
and promoting respect for human rights within its sphere of influence.
Society’s development cannot be understood from the standpoint of
economic growth alone, but must also integrate the perspectives of its
members, endeavoring to guarantee them the opportunity to pursue
full and rewarding lives. Abengoa Bioenergy believes that the best way
to meet their expectations is by forging close ties between the company
and society, while maintaining a continuous and fluid dialogue with its
stakeholders, achieved through clear and transparent communication,
and by championing actions that help individuals to progress. The
company is committed to a joint development of the company and the
community alike, undertaking and promoting actions that foster their
balanced growth and forge stronger ties between the company and
society.
The Focus-Abengoa Foundation directs, channels and complements the
social action of Abengoa Bioenergy by developing activities that generate
tangible and intangible assets, contributing to local engagement by
establishing roots and promoting the research and dissemination of the
foundation’s scientific and cultural heritage. Focus-Abengoa’s strategic
orientation is placed at the service of the societies in which Abengoa
Bioenergy develops its business activities.
Since its inception in 1982, Focus-Abengoa has engaged in public interest
work in four major areas: welfare, culture, education and research and
social action for employees, which has effectively become the “social
energy” of Abengoa. The foundation considers that culture is a hallmark
of advanced societies and plays a key role in social development and
progress. Entrepreneurial activities must go beyond the economic
dimension and play a role in resolving social and environmental problems.
The activities pursued by Abengoa Bioenergy entail associated
economic and social benefits for the communities in which they are
carried out. Both are meaningless unless they are achieved respecting
the environment. In this desire to respect the environment, Abengoa
Bioenergy strives to minimize the environmental impact of its industrial
activities in three main areas:
›› Natural resources.
›› Controlling and reducing emissions and waste generated.
›› Protecting biodiversity in the areas where it operates.
The company optimizes the use of process chemicals in order to reduce
their consumption without undermining production performance. In
terms of energy, processes have been optimized in order to reduce
electricity consumption and thus reduce greenhouse gas (GHG) emissions.
All emissions from production centers are controlled in order to minimize
such emissions as far as possible, complying with and surpassing the
requirements laid down in legislation in force in the places where the
company operates. The final result, with the guarantee offered by ISO
14001 certification at all production facilities in Europe, USA and Brazil,
are environmentally-friendly facilities that protect biodiversity in places
where the company operates, naturally based on environmental impact
studies to ensure that the potential environmental impact production
plants might have is reduced to a minimum. In 2014, we obtained ISO
14001 certification for all our plants in Brazil, where we have invested
heavily to minimize environmental impacts.
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Social action programs
During 2014, Abengoa Bioenergy promoted and carried out generalinterest activities and actions focusing on educational, cultural and
scientific work. Abengoa Bioenergy believes in the innovative company
as a necessary and effective instrument for advancing towards a society
committed to sustainable development. It also participates in the actions
that Abengoa Bioenergy promotes mainly through its Focus-Abengoa
Foundation.
All these actions aim to foster not only economic but also social and
environmental improvements, and hence the interest and well-being
of not only the people who work in the company but all local people,
organizations and communities. During 2014, Abengoa Bioenergy set
aside approximately € 92,933 for external social actions through social,
cultural, and educational and research programs.
Abengoa Bioenergy has not undertaken any public infrastructure
investments through commercial commitments, on a pro bono basis or in
kind; hence, there are no current or anticipated adverse impacts.
Social responsibility and community development initiatives are a priority
for Abengoa Bioenergy. Each year, the companies belonging to the
Abengoa Bioenergy group incorporate corporate social responsibility
values in their daily activities and integrate these values in a natural
manner in the company’s strategy, culture and organization. They plan
and carry out initiatives that guarantee social development and a proper
education system as the basis for future generations, as well as a network
of infrastructures. The development of these infrastructures ensures
optimal working conditions in the local communities where the company
operates. For this purpose, the following activities are developed and
promoted:
›› Contribution to the organization of training courses and to study
and research initiatives.
›› Collaboration with social organizations and youth groups to
encourage and promote community activities.
›› Support to employees and communities with their family incomes
and economies through vocational courses.
›› Support to environmental awareness-raising initiatives.
›› Support to the organization of local festivities.
›› Support to school organizations and sports activities.
›› Support to civic organizations and institutions to promote projects
dedicated to human development and social work.
›› Support to disability organizations.
›› Promotion and defense of the quality of life and dignity of workers.
›› Clothes collection campaign.
In turn, the aim of our activities is to support the development of
suppliers and thus favor the outsourcing of services and drive local
industrial growth.
Partnerships and agreements
Europe
›› Mandeo River Sponsorship: contribution to the surveillance and
control of the Mandeo River. Bioetanol Galicia abstracts process
water from the river and after the ethanol production process
discharges the water into it. The plant’s employees made three
surveillance visits to the river on a voluntary basis in 2014.
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›› Organizational support and sponsorship:
°° Mesa: the objective is to associate companies in the Bearn and
Soule regions of France, to find aid for the food bank. This will
be carried out by Abengoa Bioenergy France which is located
in the Lacq area.
°° Freedmindland Association by the operators of Abengoa
Bioenergy of France to support them in their music projects.
This action is targeted at Abengoa Bioenergy of France
employees and is not included in the London Benchmarking
Group (LBG).
›› Support to the Vivre Ensemble associations for disabled people.
These associations are based in the Laqc area and develop projects
for the disabled.
›› Collaboration for the festivities of the local patron saint of Huerta
and Cordovilla: financial contribution to the Fairs of Huerta and
Cordovilla, towns located near our Biocarburantes de Castilla y Leon
facilities.
›› Sponsorship of the Babilafuente youth sports team, continuing
the collaboration started in 2013 in the municipality where the
Biocarburantes de Castilla y León plant is located.
›› Contributed funds for the refurbishment of the Huerta and
Babilafuente Town Halls.
›› Gave a grant to the World Wildlife Fund for the “100 Companies
for forest” campaign, for forest recovery in Doñana National Park.
This action was promoted by Ecoagricola and is located in Seville.
›› Contributed to the Confraternity of Holy Week in San Roque.
›› Sponsored of the World Port Days of Rotterdam: financial
contribution to pay for buses, tourist guides, etc. for citizens
and visitors of Rotterdam. This could improve the perception of
our company in Rotterdam after the odor problems in Abengoa
Bioenergy Netherlands.
›› Collaboration with Deltalinqs in educational days for scholars and
students in the Rotterdam harbor area. It also includes the ESR
mitigation plan to manage them favorably in the facilities.
United States
›› Support to school organization and sports activities in the areas of
Madison and Mount Vernon.
›› Support to the Ravenna Ball Association and Boy/Cub Scouts.
›› Support to the local food Banks: Love in Action Food Pantry and
OASIS Food Pantry, which are Catholic charities supplying food to
citizens of St. Charles, MO County. Volunteers collect food and
devote some of their free time to distribute it among persons in
need.
›› Collaboration and support to community participation at:
Rotary Foundation, American Heart Association, Madison Police
Department, Kansas 4-H Foundation, Memorial Hall drainage, Mary
Crowley Cancer Research Center in honor of Les Cornelius, St Louis
Green Business Challenge.
›› City of Ravenna: donated to community service projects with a
direct impact of people. The city of Ravenna services 1,300 people
in the area. Services include: protection against fire, emergency
services, public parks, crime prevention, etc.
›› Support to the 4-H Community that enables young people to
achieve their full employment and learning potential in collaboration
with youth and adults. 4-H fosters education for life using a
learning-by-doing approach. 4-H is present in all 93 counties of the
State of Nebraska.
Brazil
Abengoa Bioenergy Brazil has planned a series of activities based
on corporate social responsibility actions designed to integrate the
company into local communities. These activities aim to contribute to
the improvement of economic, social and environmental conditions and
support the interests and well-being of not only the company’s employees
but the rest of the community.
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The most significant projects launched in 2014 were the following:
›› Living schools project: promotes culture and education, while
encouraging sports activities for the development of children and
teenagers.
›› “Adopt a letter” project: promotes the solidarity among the
collaborators of Abengoa Bioenergy Brazil through letters adopted
in post offices from surrounding cities.
›› Positive incomes: support to employees and communities to boost
family incomes and economies through vocational training courses.
›› Play project, children’s day: collection and distribution of toys to
children in need.
›› Financial support to and sponsorship of organizations.
›› Winter clothing campaign, collection of coats and purchase of new
blankets for delivery to surrounding communities.
›› Internal journal project: broaden communication of company
policies, standards and developments through an internal
newsletter.
›› Zero Accident safety campaign: project focused on rural employees,
specifically during harvest. Those groups that have not have any
accident since the beginning of the harvest will receive award.
›› Christmas card design competition: to improve integration of
employees, children and company.
›› “Adopt a spring” project: environmental initiatives to drive
awareness among stakeholders on the need to preserve and restore
the environment.
›› Digital inclusion (computing): fostering the use of information
technologies and interactive communication and the in their work
and personal life.
›› In-house project days explaining corporate policies, standards and
development through and internal newsletter.
›› School inclusion: aimed at employees that left school to encourage
them to retake or start their studies.
Participants in the project of the school environment integrity.
Conferences
World Biofuels 2014
For the thirteenth consecutive year, the global biofuels conference
“World Biofuels 2014” was held at the Hospital de los Venerables, the
headquarters of the Focus-Abengoa Foundation in Seville.
This conference has become a reference forum for experts from the
biofuel and biodiesel industry and was attended by participants coming
from developed and emerging world markets. During the conference,
participants discussed the strategic European directives on biofuels, went
over plans to increase the role of these fuels in transport and discussed
the present and future problems faced by the industry among other
issues.
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Neste Oil, the Malaysia Innovation Agency, and Gol Linhas Aereas
Inteligentes.
The World Congress is an event that promotes collaboration and
open discussion amongst industry leaders on industrial biotechnology,
investment, policy, biobased products and renewable chemicals. During
the 2014 conference, a formal MOU (memorandum of understanding)
was signed between Biobased Delta and Bioindustrial Innovation
Canada to accelerate the international commercialization of advanced
technologies. In one of the important annual global conferences,
Abengoa Bioenergy participated and voiced our positioning and
accomplishments, showcasing our company as an innovator in a highly
technical and competitive industry.
Chapel of the Focus- Abengoa Fundation, World Biofuels 2014.
This activity is part of the Focus-Abengoa Forum on energy and climate
change, which promotes initiatives in the field of energy research and
the analysis of matters related to renewable energies and entrepreneurial
action. The Forum aims to contribute to the debate on the change of
energy model from a multidisciplinary perspective.
The world conference on biofuels “World Biofuels 2014” sought to
promote, through public debates, a genuine and open platform for
research, presentation and discussion of ideas and results through any
actions that are deemed appropriate at any given time based on the
nature of the matters analyzed
BIO’s 2014 World Congress on Industrial Biotechnology
Abengoa Bioenergy sponsored the gathering of industry experts at the
2014 World Congress on Industrial Biotechnolgy, organized by BIO
(Biotechnology Industry Organization) in Philadelphia, Pennsylvania (USA)
in May 2014. Abengoa Bioenergy’s CEO, Javier Garoz, participated in a
plenary panel that discussed new markets and opportunities for biofuels
investment. Mr. Garoz was joined by industry colleagues from Butamax,
Associations
Abengoa Bioenergy is an active member of associations of producers and
researchers in the field of renewable energies, leading and encouraging
the use of such fuels due to the benefits they offer in response to climate
change. Its objectives include the dissemination and raising of awareness
of society and the political classes with regards to the benefits of biofuels
and the need for favorable legislation, vital for the growth of bioethanol
and biodiesel as substitutes for fossil fuels and as an alternative to
combat change climate.
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In order to consolidate its voice and presence in the renewable energy
industry the company is present in the main associations in the three
geographic areas in which it operates:
›› Advanced Ethanol Council (which is a subsidiary of the Renewable
Fuels Association).
›› Biotechnology Industry Organization.
›› Fuels America Coalition.
›› ePURE - European Bioethanol Renewable Ethanol.
›› APPA Biocarburantes, Asociacion de Productores de Energias
Renovables (Spain).
›› NVDB - Nederlandse Vereniging voor Duurzame Biobrandstoffen.
›› SNPAA – Syndicat National Des Producteurs D’alcool agricole.
›› CTC - Centro de Tecnologia Canavieira.
›› Ridesa - Rede Interuniversitária para o Desenvolvimento do Setor
Sucroenergético.
Abengoa Bioenergy also participates in scientific, technological and
cultural events of interest to the company that are organized in areas,
cities or regions where it operates, bearing in mind that, in general, any
activity that could be classified as lobbying is done by supporting the
different professional associations present in each sector of activity of
Abengoa’s business groups. In the US, the company conducts lobbying
activities through the following professional associations: Cornerstone
Government Affairs, Renewable Fuels Association, Association of
Nebraska Ethanol Producers, Association of Missouri Ethanol Producers
and the Kansas Association of Ethanol Producers.
During 2014, no contributions were made to political parties or
institutions related to them.
Whistleblower channels
Abengoa Bioenergy, through Abengoa, manages a whistleblower
mechanism that was implemented in 2007 in accordance with the
requirements of the Sarbanes-Oxley Act; any claims are forwarded to the
audit committee. The company currently has two whistleblower channels
in place:
›› Internal: available to all employees via electronic or ordinary mail so
they can report any irregularities in matters concerning accounting,
auditing or breaches of the Abengoa code of conduct.
›› External: intended for any third party outside the company to report
irregularities, fraudulent acts or breaches of the Abengoa code of
conduct through the Abengoa website.
Claims may be submitted on guarantee of confidentiality to the
complainant or may be submitted anonymously. By creating these
channels, Abengoa has sought to provide a specific avenue of
communication with management and governing bodies in order to
communicate any irregularity, breach or conduct that contravenes the
ethics, regulations and rules governing this group.
Economic Performance
Creation of value
Abengoa Bioenergy is committed to a corporate strategy focused on
creating long-term, sustainable value for all its stakeholders: suppliers,
customers, shareholders, employees, society at large and communities
where it has a presence through its business groups. The generation of
corporate value is therefore directly related to the management of each
and every stakeholder group, along with the need to coordinate and
strike a balance between the organization and stakeholders, and among
them through society. A balance must be sought between maximizing
the returns and interests of each group and the cost of said optimization,
understood as the reduction of the benefits and interests of some groups
with respect to others.
ABENGOA
BIOENERGY
page 83
G4-9, G4-13, G4-16,G4-EC1, G4-EC4
Abengoa Bioenergy creates value by administering the value it
generates for its stakeholders and the value the latter contribute to the
organization. The products and services marketed by Abengoa Bioenergy
create value for its customers to the extent that they respond to customer
needs and meet their expectations according to the evolution of the
sector in which the company operates. The company generates value
through quality and security. Suppliers benefit through goods and
services, which has a positive impact on economic development. The
creation of shareholder value is manifested through the payment of
dividends and the continued increase in the value of the organization for
its shareholders.
Taxes paid (k€)
Country
2014
2013
Brazil
2,057
-5,983
–
–
32
1
Spain
9,711
7,020
France
7,436
12,360
30
14
-12,135
-9,503
3,316
7,232
10,447
11,141
Switzerland
Germany
United Kingdom
Netherlands
Abengoa Bioenergy creates value for its employees through training,
motivation, salaries and a balance between professional development and
personal growth. It creates value for society and communities where it
has a presence through sustainable development practices, protection of
the environment, respect for human rights, economic development, job
creation and the payment of taxes. In addition to the detailed economic
and financial information contained in Volume 2: Legal and EconomicFinancial Report 2014, this chapter also includes a series of indicators of
the impacts of Abengoa Bioenergy’s activities on the communities where
it operates and on its stakeholders.
United States
Total
Direct economic value (k€)
2014
Net sales
Details of the direct economic value generated and distributed is provided
below, in accordance with the methodology developed by the Global
Reporting Initiative (GRI).
2,136,660
Other operating income
80,109
Financial income
50,479
Profits of associates
–
Profit from discontinued operations
–
Economic Value Generated (EVG)
2,267,248
Raw materials costs
1,562,378
External partners
1,396
Employee benefit expenses
119,728
Operating expenses
302,074
R&D&I expenditure
4,168
ABENGOA
BIOENERGY
page 84
G4-9, G4-13, G4-16, G4-EC1, G4-EC4
Direct economic value (k€)
2014
Financial charges
464,489
Dividends from the consolidated cash flow statement
Taxes (income tax losses)
–
-103,811
Investments in the community
Economic Value Distributed (EVD)
Economic Value Retained (EVR) = EVG - EVD
–
2,350,422
-83,174
Material financial government aid received as capital
subsidies
–
Material financial government aid received as operating
subsidies
–
Material financial government aid received
–
8.3. Shareholders
The share capital as of December 31, 2013 and 2014, is € 149,522,000,
comprising 2,990,436 shares with a par value of € 50 each, fully
subscribed and paid.
On May 20, 2002, Abengoa Bioenergy was incorporated with a capital
stock represented by 1,204 registered shares with a face value of € 50
each, with 1 share being subscribed by Sociedad Inversora en Energía y
Medio Ambiente, S.A. and 1,203 shares being subscribed by Abengoa
S.A.
By virtue of the deed executed on November 18, 2002, the company was
transformed from a “Sociedad Anónima” (corporation) into a Limited
Liability Company.
Abengoa, S.A. decided to group all its biofuel-related investments under
Abengoa Bioenergy and on December 16, 2002, the extraordinary
general meeting agreed to make an initial capital increase through
non-monetary contributions amounting to € 119,756,000 by issuing
2,395,191 new company shares, identical to the existing shares, with a
par value of € 50 each. Sociedad Inversora en Energía y Medio Ambiente,
S.A. did not subscribe in this capital increase and the shares were fully
subscribed by Abengoa S.A.
On December 31, 2002, the Extraordinary Shareholders Meeting agreed
to increase capital stock again by € 29,706,000 through non-monetary
contributions, issuing 594,111 new company shares, identical to the
existing shares, with a par value of € 50 each. Abengoa, S.A. did not
subscribe in this capital increase and the shares were fully subscribed by
Sociedad Inversora en Energía y Medio Ambiente, S.A.
On January 1, 2004, the General Shareholders’ Meeting unanimously
resolved to transform Abengoa Bioenergy from a limited liability company
into a corporation. The company, by virtue of the deed dated September
17, 2004, was transformed from a limited liability company into a
corporation, thus changing its name to: Abengoa Bioenergy, S.A.
Abengoa S.A. maintains regular communication with its shareholders
by means of numerous communication channels. The corporate website
(www.abengoabioenergy.com), published in Spanish, English and
Portuguese is an excellent communication tool. It is constantly updated
and seeks to provide all the relevant information required to keep its
shareholders and stakeholders fully informed about the company’s
operations at all times.
ABENGOA
BIOENERGY
page 85
G4-12, G4-13, G416,G4-EC1
Shareholder structure
Guidelines
The shareholder structure of Abengoa Bioenergy, S.A. was, at December
31, 2014, as follows:
Six basic guidelines define the relationship with suppliers and reinforce
the strategy of the procurement department:
Shareholders
% Participation
2014
% Participation
2013
Abengoa S.A.
80.58
80.58
Sociedad Inversora en Energía
y Medio Ambiente S.A.
17.47
17.47
1.95
1.95
Other
Communication with shareholders takes place regularly within the
scope of Abengoa, S.A.’s activities and through the informative channels
established specifically for this purpose.
8.4. Suppliers
The strategy of the procurement department is based on the direct
integration of suppliers in the development of operations through the
application of their expertise and technology. The implementation of
the best solutions proposed by suppliers enables us to minimize risk and
optimize costs and deadlines.
All investment agreements and contracts with our suppliers and
distributors include clauses on human rights.
››
››
››
››
››
››
Outsourcing
Leadership
Globalization
Local development
Integration
Quality
By outsourcing services identified as complementary to production,
we are able to guarantee maximum optimization of operations.
Outsourcing allows the company to concentrate on improving knowledge
in key activities, boosting the performance of our core business and
incorporating the most professional service through direct supplier
involvement in day-to-day operations. Specialized services in the different
areas of maintenance and utilities, as well as supplies and the application
of critical products, are among the sectors subject to outsourcing due
to the necessary specific experience, technology and training provided
by the knowledge and experience gathered over many years by our
suppliers.
Leadership
The continuous search for and recruitment of leading suppliers in
the industry guarantees innovative improvement solutions with a
significant technological component, allowing the company to maintain
its competitiveness and quality. The supply of critical products and
the maintenance of essential units draw on suppliers with recognized
expertise and proven track records.
ABENGOA
BIOENERGY
page 86
G4-12, G4-13, G4-EC8, G4-EC9
Local suppliers
Globalization
All procurements are subject to globalization. The contracting of shared
suppliers in the different production centers allows the company to
incorporate the most developed and consistent service with standardized
scopes that provide a corporate procedure and balanced growth between
the different production plants. These synergies facilitate the application
of global solutions, resulting in cost optimization in both management
and development of the service and supplies.
Brazil
Switzerland
Germany
Spain
France
Local development
In turn, the focus on the development and involvement of local suppliers
guarantees the coverage of the most elementary and basic needs,
with the consequent flexibility in consumption volumes and response
times, thus positively impacting commercial and industrial growth in
the geographic areas of operation and ensuring a close and social
relationship.
United Kingdom
Netherlands
United States
Total volume of
procurements k€
Local suppliers (%)
283,663
97
1,772
4
12
100
1,051,777
94
162,632
89
111
99
349,899
77
1,849,276
71
Integration
The integration of suppliers’ improvement proposals enables an ongoing
improvement of productivity and performance. Result-based pricing is a
fundamental principle of commitment to the business, complemented by
integration in the environmental safety policy, respect for human rights
and business ethics.
Quality
The quality of our suppliers is a key factor in ensuring that the services
and supplies received by our production plants are in line with expected
levels. The procurements department, in collaboration with quality
and human resources, systematically conducts a series of annual visits/
audits to suppliers in order to review aspects related to corporate social
responsibility and sustainability, quality, procurements, traceability and
product control, as well as the corresponding logistics to ensure proper
management and delivery to customers.
ABENGOA
BIOENERGY
page 87
G4-HR1, G4-HR2
Social responsibility and sustainability
Since June 2008, Abengoa Bioenergy, as part of the sustainability
policies of Abengoa and all its business groups, requires its suppliers,
including raw materials suppliers, to sign a social responsibility code
(SRC) based on the SA 8000 international standard, consisting of 11
clauses. Through adhesion to the SRC, Abengoa Bioenergy encourages
its suppliers to observe and comply with established social responsibility
and environmental regulations, and with all social responsibility
aspects set forth in the Global Compact, covering the company’s entire
production processes, and thereby requiring all its suppliers to sign the
aforementioned code in writing.
Abengoa has implemented a GHG (greenhouse gas) emissions inventory
under which our suppliers are required to send us details of emissions
from acquired/contracted products/services. Our daily commitment
focuses on continuously improving sustainability and we continue to
require our suppliers to maintain their commitment in this regard.
Supplier audit - SA 8000,
Abengoa Bioenergy in Brazil
can contribute to ensure the resources needed to promote ongoing
improvement of labor practices.
The stakeholders are: the company’s employees, with regards to
matters related to commitments to health, safety, training, motivation
and personal and professional development; clients, regarding to
the commitment to achieve maximum client satisfaction through our
products and services; society, with the sustainable growth of all the
communities in which the company is present; and finally, suppliers, with
the commitment to establish a healthy relationship based on mutual
respect, trust and benefit.
The suppliers to which the company has conducted audits are those that
are critical to the company and are in a position to pose a significant risk
of non-compliance with the SA 8000 standard requirements. Audits are
conducted according to a program established on an annual basis.
In this way, certification contributes to the achievement of high level of
social responsibility by the company and is beneficial in social terms for all
stakeholders.
In accordance with the social responsibility commitments acquired as a
consequence of our accession to the United Nations Global Compact
and those derived from the organization’s code of conduct. Abengoa
Bioenergy Brazil implements a social responsibility policy leading to a
management system inspired in the SA 8000 international standard,
which ensures ongoing improvement in the company’s social and labor
performance.
Abengoa Bioenergy Brazil was certified under this standard in 2010,
which evidences the high level of social responsibility, based on the
fundamental pillars of Abengoa’s social responsibility policy.
The company values human beings and fosters participative
management, allowing stakeholders to expresses freely so that they
Button used by
the supplier
ABENGOA
BIOENERGY
page 88
G4-12, G4-HR1, G4-HR2
Greenhouse gas inventory
Since the introduction of the Greenhouse Gas Inventory, Abengoa
Bioenergy requires all its suppliers to report all their emissions associated
with goods and services acquired by the company (greenhouse gas
emissions reporting system implementation agreement) so that all
suppliers are required to provide information on emissions associated with
each order placed by the company.
In order to make it easier for all suppliers to adapt to these procurement
conditions, suppliers are required to agree in writing to implement
an emissions reporting system within a maximum transition period of
six months. Once this period has expired, any suppliers that have not
provided data on emissions or that have not expressed their commitment
to implementing a reporting system are excluded as Abengoa suppliers.
Only in exceptional cases may a special authorization be granted, in
which case the companies in question are required to estimate the
emissions deriving from the relevant product or service.
Social Responsibility Code for Abengoa Bioenergy suppliers
and subcontractors
Abengoa requires its suppliers to ratify the SRC as a way to promote
observance of and compliance with social and environmental regulations,
namely Abengoa’s code of professional conduct:
›› Forced or imposed labor may not be used, and employees shall be
free to leave their jobs with sufficient advanced notice.
›› Child labor may not be utilized and, in particular, ILO regulations
shall be fulfilled.
›› The freedom of association of all employees shall be respected.
›› All employees must be provided with proper occupational safety and
hygiene conditions.
›› Activities must be undertaken respecting the environment and in
observance of all legislation in force in the country concerned.
All products and services must be supplied so as to comply with the
quality and safety criteria specified in the appropriate contractual
elements, and must be safe for their planned use.
Fraudulent means, such as the payment of bribes, must not be used
to ensure the supply of goods and services to Abengoa Bioenergy
companies.
Responsible procurement system
In 2011, Abengoa developed a responsible procurements system in order
to incorporate sustainability criteria in supplier assessments and to provide
the company with tools and procedures to analyze the level of risk of the
suppliers with which the company works.
This system is implemented in four phases:
›› All laws and regulations applicable in the country where the
activities are undertaken shall be fulfilled.
›› Human rights must be respected and no employee may suffer
harassment, physical or mental punishment or any other form of
abuse.
›› Salaries and working hours must at least comply with the laws, rules
and regulations applicable in this regard in the country in question,
including minimum wages, overtime and maximum number of
working hours.
1.Initial diagnosis of the procurement system: the aim of this
first phase was gathering in-depth knowledge of the procurement
procedures in all of the group’s companies, since the wide
range of activities carried out by the company and the different
characteristics of contracted suppliers means that Abengoa has to
use a decentralized procurement system.
ABENGOA
BIOENERGY
page 89
G4-12
2.Supplier assessment: Abengoa conducts an annual analysis
of suppliers based on variables such as supplier location, type of
supply or type of activity. In 2013, as in previous years, the supplier
assessment was carried out, and audits were conducted to those
suppliers in which potential risk situations were detected.
3.Supplier audits: the aim of this phase is to determine the degree
to which suppliers deemed critical after the assessment guarantee
compliance with the principles set forth in the social responsibility
code (SRC).
4.Supplier scoring/rating: the final phase of this process consists of
the scoring of suppliers based on the analyses performed, allowing
best practices to be rewarded and the exclusion of suppliers who do
not meet the requirements established in the CSR.
During 2014, the company continued its work in the implementation
and roll-out of a platform for the registration and approval of suppliers
that will systematize all phases of the current responsible procurements
system.
Its main objectives are:
›› To establish a standard approval process for all Abengoa suppliers
incorporating sustainability criteria and covering the diverse
geographical areas and activities in our operations.
›› To reduce risks in the procurement of goods and services,
maintaining or improving the speed of such processes by creating
efficient administrative processes.
›› To perform more in-depth assessments of the supply chain in order
to evaluate each supplier and thus reward excellence or cancel
trade relations with non-performing suppliers. The purpose of this
classification model is to quantify the relative position of suppliers
based on their management in terms of corporate social responsibility
level, thus establishing a differentiating criterion to be applied in
tenders or when contracting services with suppliers.
›› To improve relationships with suppliers by facilitating communication
between both parties.
8.5. Customers
The management systems implemented in accordance with international
standards and the internal requirements describe the method for
assessing the maturity of these systems and establish the need to
implement customer satisfaction measurement systems capable of
analyzing their needs and expectations. In order to assess customer
satisfaction, satisfaction surveys are conducted periodically by plant
quality assurance departments. These surveys are not annual given the
specific characteristics of the business. Instead, they are performed at
established intervals in accordance with the company’s strategy and
objectives.
In 2013, the results of the surveys were received and revealed that the
high level of satisfaction reported in previous years had been maintained.
These surveys are conducted to make further progress in our quality and
service. The surveys were conducted to over 30 customers in Abengoa
Bioenergy’s portfolio in Europe and the United States. The following
important customers completed our satisfaction survey: BP, Cepsa,
Ecofuel, Lyondell, Repsol, Total, Siplec and Acciona, Cargill, Galp, Meroil,
Petronor and Esergui.
This analysis concludes by establishing specific objectives and action
plans to meet customer expectations and improve customer satisfaction.
Management also takes these surveys into consideration when
determining and defining the strategy of each company.
Communication with our customers
Abengoa Bioenergy considers the commitment to service to be of vital
importance. Direct communication channels are therefore established
between technical and commercial departments and customers in order
to forge a close relationship and thus receive any relevant feedback and
suggestions.
ABENGOA
BIOENERGY
page 90
G4-12
One of the aspects valued most highly by customers is product quality,
achieved through the application of strict controls on raw materials prior
to their arrival at the plant, in strict compliance with the applicable quality
parameters and in accordance with current regulations, during the control
of processes, stored products and ultimately the batches released. The
foregoing is achieved in strict compliance with contracts, ensuring that
Abengoa Bioenergy is synonymous with guaranteed performance at all
levels.
United States
›› Bioethanol
Alcotra, BioUrja, BP, Chevron, ExxonMobil, Flint Hills Resources, Koch Supply
& Trading, Marathon, Murex, Murphy Oil USA, QuikTrip, Shell, Thorntons and
Valero.
›› DGS
Cargill, Gavilon, Scoular, Adams Land and Cattle, ADM, The Rice Co., CGB,
Tyson and Pilgrim’s Pride.
List of customers:
Brazil
Europe
›› Bioethanol
BP, Shell, Total, Repsol, Cepsa, Lyondell, Ecofuel, Greenenergy, ConocoPhillips,
Kolmar and ExxonMobile.
›› Biodiesel
Cepsa, Repsol, Galp and Ecofox.
›› DGS
Nutreco, Nuter Feed, Arkady Feed, Glon Sanders, Cefusa, Sud Ouest Aliment,
Nanta, Piensos Unzúe, Cefetra, Avigase, Delagro, R&H Hall, De Heus and
Evialis France.
›› Glycerin
Nutreco, Cegeco, SAT Alia, EDF&Man, Piensos Juan Jiménez, Covap, Loiret &
Haentzens España, Gavilón, IPSpecialities and Ukrechemresource.
›› Cogeneration
Energy fed directly into the grid
›› Bioethanol
Petrobras, ALesat, Ipiranga, Simera, Gigante, G Petro, Copersucar, Monte
Cabral, Petronac and Raízen.
›› Sugar
Agrograin Ltda - ADM Group, Armajaro Trading Limited, Bunge, Cargill,
Copersucar, Czarnikow Sugar, Glencore UK, Noble Americas Corp, Louis
Dreyfus Sugar Company and Sucden - Sucres Et Denrees.
›› Cogeneration
Eletrobrás, CCE E, CEMAR-MA, COSERN, ESCELSA, RGE, Ligth, Elektro, Celpe,
CEAL, Celg, Bandeirante Energia S.A., CPFL Santa Cruz, CPFL Piratininga,
Companhia de Energia Elétrica – Palmas, Eletropaulo and Cemig.
ABENGOA
BIOENERGY
CSR report 2014
10
External
verification
report
page 91
ABENGOA
BIOENERGY
page 92
CSR report 2014 | 10 External verification report
A free translation from the original in Spanish. In the event of a discrepancy, the Spanish language version
prevails.
INDEPENDENT ASSURANCE REPORT ON THE
2014 CORPORATE SOCIAL RESPONSIBILITY REPORT
To the Board of Directors of Abengoa Bioenergía, S.A.:
For the purpose of this report, we have asked Management and the units of Abengoa Bioenergy which
have helped Abengoa Bioenergy to prepare and create its 2014 CSRR various questions and we have
applied certain procedures including, in general and amongst others, the following procedures:

Meetings with Abengoa Bioenergy’s staff and management to ascertain the procedures for
collecting information and the control environment for each of the selected indicators, the
management procedures, systems and approaches used when considering and complying with
AA10000APS (2008) principles, in order to obtain the information required for the external
review.

Analysis of the adaptation of the indicators included in the general and specific standard
disclosures of the GRI Content Index, to the GRI's G4 Guidelines and to the Internal Protocols of
the Integrated Sustainability Management System (ISMS) of Abengoa Bioenergy.

Analysis of the procedures for obtaining and for internal control and validation of the selected
indicators, including control reviews.

Review of the internal IT control environment in relation to information systems which support
the preparation and reporting of selected indicators.

Verification, by substantive testing applied to a sample, of the quantitative and qualitative
information of the selected indicators and whether they have been appropriately compiled from
the data provided by Abengoa Bioenergy’s sources of information. For financial information
included in the selected indicators, we have verified that it is obtained from Abengoa Bioenergy’s
2014 consolidated annual accounts, audited by independent third parties.

Verification that an independent third party has verified the data on energy consumption and
greenhouse gas emissions included in the selected indicators and whether such data are in line
with Abengoa Bioenergy’s internal NOC-05/003 standard, in accordance with the international
ISO 14064-3:2012 standard.

Assessment and sampling of management practices and documentation available regarding the
systems for participation by stakeholders and procedures for communications and responses to
material issues, and review of the opinions of external stakeholders and the Independent Panel of
Experts on Sustainable Development (IPESD).
Scope of the work
We have performed a reasonable assurance engagement on the following aspects of the 2014
Corporate Social Responsibility Report (hereinafter referred to as “2014 CSRR”) of Abengoa
Bioenergía, S.A. and its Group of Companies (hereinafter referred to as “Abengoa Bioenergy”) for the
financial year ending 31 December 2014:

the 2014 indicators regarding the general and specific standard disclosures proposed in the
“Sustainability Reporting Guidelines” of the Global Reporting Initiative (GRI) version 4 (G4)
(hereinafter referred to as “G4”) and referred to in the section entitled “GRI Index” of the
CSRR, reviewing that they are in line with the Internal Protocols of Abengoa Bioenergy’s
Integrated Sustainability Management System (ISMS),

the adaptation of the contents of the 2014 CSRR, so that it is in line with the principles of
inclusivity, materiality and responsiveness established in the “AA1000 AccountAbility
Principles Standard 2008” issued by AccountAbility, Institute of Social and Ethical
Accountability (hereinafter referred to as “AA1000APS (2008)”), as stated in the section
entitled “Principles governing this report” of the CSRR.
Responsibility of Abengoa Bioenergy’s Management
The preparation of the 2014 CSRR and the contents of the report are the responsibility of Abengoa
Bioenergy’s Management, which is also responsible for establishing, adapting and maintaining the
internal control and management systems where information is obtained and the systems for applying
the AA1000APS (2008) principles.
Our responsibility
Our responsibility is to issue an independent reasonable assurance report based on the work that we
have carried out in accordance with the guidance of the ISAE 3000 Standard “Assurance Engagements
Other than Audits or Reviews of Historical Financial Information” issued by the International Auditing
and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) for a
reasonable level of assurance. Furthermore, we have also carried out our work in accordance with
AA1000 Assurance Standard 2008 (hereon, AA1000AS (2008)), of AccountAbility, under a Type 2
high assurance engagement, which corresponds to reasonable assurance as per ISAE 3000.
We consider that the evidence which we have obtained provides an adequate basis for our conclusions.
Independence
We have carried out our work in accordance with the independence standards required by the Code of
Ethics of the International Federation of Accountants (IFAC).
In accordance with the International Standard on Quality Control 1 (ISQC 1), PwC has a global quality
control system which includes documented policies and procedures on the compliance of ethical
requirements, professional standards and applicable regulations.
The work has been carried out by a team of people specialised in the company’s social, environmental
and financial performance, with a wide range of experience in reviews of this type of information.
A reasonable assurance engagement consists of applying procedures to obtain evidence on the
processes and controls used to prepare the CSRR. The procedures selected depend on professional
judgment and include an assessment of the risks of material inaccuracies due to fraud or error. In
carrying out this risk assessment, we have taken into account relevant internal controls for adequate
preparation and presentation by the company of the information to be reviewed, to establish review
procedures which are appropriate in the circumstances.
PricewaterhouseCoopers Auditores, S.L., C/Concejal Francisco Ballesteros, 4, 41018 Sevilla, España
Tel.: +34 954 981 300 / +34 902 021 111, Fax: +34 954 981 320, www.pwc.es
R. M. Madrid, hoja 87.250-1, folio 75, tomo 9.267, libro 8.054, sección 3ª. Inscrita en el R.O.A.C. con el número S0242 - CIF: B-79 031290
Page 2 of 4
ABENGOA
BIOENERGY
page 93
CSR report 2014 | 10 External verification report
Conclusion
− Regarding the foundation principle of inclusivity, Abengoa Bioenergy’s Management has
established several procedures for the engagement and participation of its stakeholders, to
incorporate its expectations on the development of its corporate social responsibility strategy.
Responsiveness
Abengoa Bioenergy is currently creating a new Strategic CSR Plan (SCSRP), as part of Abengoa’s new
corporate Strategic CSR Plan, for forthcoming years up to 2020 whereby CSR will play an important
role in terms of the strategic development of its operations. Abengoa Bioenergy has continued to
improve its system for reporting CSR. We recommend that Abengoa Bioenergy continue with its work
on communication and transparency mechanisms for stakeholders, especially with suppliers and
contractors and with local communities and administrations where it operates, so that it can examine
the specific needs of each group carefully and make a proactive communication which focuses on the
answer and commitments of the organisation regarding material issues for key stakeholders. We also
recommend that in line with the new corporate SCSRP, Abengoa Bioenergy continue updating and
developing its CSR master plans at the level of both its business group and individual
companies/geographies and that it continue incorporating the changing expectations of the
stakeholders in the geographies where it has a presence, on material issues for these territories and
within the scope of its chain value.
− Regarding the principle of materiality, Abengoa Bioenergy’s Management has an adequate
structured system to identify and prioritise material issues for the organisation and its
stakeholders.
PricewaterhouseCoopers Auditores, S.L.
In our opinion, on the basis of the work which we have carried out:

The 2014 indicators regarding the general and specific standard disclosures, whose scope and
limitations in the review are stated in section “GRI Content Index” of the CSRR, have been
reliably and adequately prepared, in all significant aspects, in accordance with GRI's G4
Guidelines and the Internal Protocols of the Integrated Sustainability Management System
(ISMS) of Abengoa Bioenergy.

The 2014 CSRR has been prepared, in all material aspects, in accordance with the principles of
inclusivity, materiality and responsiveness established in the AA1000APS (2008). Specifically:
− Regarding the principle of responsiveness, Abengoa Bioenergy’s Management has established
several procedures to give appropriate responses to material issues and expectations of
stakeholders.
Recommendations
Mª Luz Castilla
During our review, some observations and recommendations have come to our attention which we will
present to Abengoa Bioenergy’s Management. Set out below is a summary of the main
recommendations regarding improvements in the application of the AA1000APS (2008) principles of
inclusivity, materiality and responsiveness, which do not alter the conclusions given in this report.
19 May 2015
Inclusivity
Abengoa Bioenergy has ongoing talks with its stakeholders via different communication channels and
has systematic mechanisms to ascertain their expectations and priorities. We recommend that
Abengoa Bioenergy continue looking into this matter, particularly focusing on those stakeholders who
are specifically relevant to its business activities and territories (Europe, the USA and Brazil). We also
suggest that Abengoa Bioenergy continue promoting, systematising and prioritising these dialogue
which enables the stakeholders to be directly involved in the development of a responsible and
strategic response to sustainability, by drawing up and implementing Corporate Social Responsibility
(CSR) master plans at Abengoa Bioenergy. We also recommend that Abengoa Bioenergy especially
prioritise engagement actions with suppliers, local communities and public administrations in
territories where it operates. We also recommend that it especially continue with promoting and
formalising specific channels and actions for engagement and identifying the expectations of suppliers,
contractors, local communities and administrations in territories where it operates.
Materiality
In 2014 Abengoa Bioenergy has reviewed and improved its procedures for analysing material issues in
line with the recommendations of GRI’s G4 Guidelines and has analysed the impact of these issues
throughout its value chain. Regarding these procedures, we recommend that Abengoa Bioenergy
continue making advancements to identify and communicate material issues, prioritising key
stakeholders for its business activities and territories. By prioritising key stakeholders, Corporate
Social Responsibility (CSR) master plans at the level of the business group and specific companies will
have greater focus, establishing specific actions for each case based on the materiality of each issue in
the different territories and their impact on the various points in Abengoa Bioenergy’s value chain.
Page 3 of 4
Page 4 of 4
ABENGOA
BIOENERGY
CSR report 2014
11
GRI G4
content index
page 94
ABENGOA
BIOENERGY
page 95
CSR report 2014 | 11 GRI G4 content index
General Standard Disclosures
Page
Omissions
External Assurance
Strategy and analysis
G4-1
4
✓ page 92
G4-2
4
✓ page 92
G4-3
15
✓ page 92
G4-4
16-19
✓ page 92
G4-5
8
✓ page 92
G4-6
23, 24 and 25
✓ page 92
G4-7
12 and 13
✓ page 92
G4-8
21-25
✓ page 92
G4-9
17, 28, 67, 83 and 84
✓ page 92
G4-10
68-71
✓ page 92
G4-11
76 and 77
✓ page 92
G4-12
9 and 85-87
✓ page 92
G4-13
26, 21, 22, 83, 84 and 85
✓ page 92
G4-14
33, 45 and 62
✓ page 92
G4-15
38 and 39
✓ page 92
G4-16
81 and 82
✓ page 92
Organizational profile
ABENGOA
BIOENERGY
page 96
Page
Omissions
External Assurance
Identified material aspects and boundaries
G4-17
8
✓ page 92
G4-18
8
✓ page 92
G4-19
8 and 10
✓ page 92
G4-20
8
✓ page 92
G4-21
8 and 11
✓ page 92
G4-22
7
✓ page 92
G4-23
7
✓ page 92
G4-24
6
✓ page 92
G4-25
6
✓ page 92
G4-26
6
✓ page 92
G4-27
6
✓ page 92
G4-28
7 and 8
✓ page 92
G4-29
7 and 8
✓ page 92
G4-30
7 and 8
✓ page 92
G4-31
8
✓ page 92
G4-32
8 Independent review report
✓ page 92
G4-33
11
✓ page 92
G4-34
57-59
✓ page 92
G4-35
57-59
✓ page 92
G4-36
57-59
✓ page 92
Stakeholder engagement
Report profile
Governance
ABENGOA
BIOENERGY
page 97
Page
Omissions
External Assurance
G4-37
57-59
✓ page 92
G4-38
57-59
✓ page 92
G4-39
57-59
✓ page 92
G4-40
57-59
✓ page 92
G4-41
57-59
✓ page 92
G4-42
57-59
✓ page 92
G4-43
57-59
✓ page 92
G4-44
57-59
✓ page 92
G4-45
57-59
✓ page 92
G4-46
57-59
✓ page 92
G4-47
57-59
✓ page 92
G4-48
8-11
✓ page 92
G4-49
57-59
✓ page 92
G4-50
57-59
✓ page 92
G4-51
60 and 70-74
✓ page 92
G4-52
57-61 and 70-74
✓ page 92
G4-53
57-61 and 70-74
✓ page 92
G4-54
74
✓ page 92
G4-55
57-61
✓ page 92
G4-56
75
✓ page 92
G4-57
64-66
✓ page 92
G4-58
82
✓ page 92
Ethics and integrity
ABENGOA
BIOENERGY
page 98
Information about the management approach and indicators
Page
Omissions
External Assurance
Category: economic performance
Economic performance
G4-DMA
8-11
✓ page 92
G4-EC1
78-85
✓ page 92
G4-EC2
15-17 and 36
✓ page 92
G4-EC3
76
✓ page 92
G4-EC4
83 and 84
✓ page 92
G4-DMA
8-11
✓ page 92
G4-EC5
74 and 75
✓ page 92
G4-EC6
68-74
✓ page 92
G4-DMA
8-11
✓ page 92
G4-EC7
29 and 77-80
✓ page 92
G4-EC8
77-80 and 86
✓ page 92
G4-DMA
8-11 and 42-43
✓ page 92
G4-EC9
86
✓ page 92
Market presence
Indirect economic impacts
Procurement practices
ABENGOA
BIOENERGY
page 99
Page
Omissions
External Assurance
Category: environment
Materials
G4-DMA
9-11
✓ page 92
G4-EN1
43-45
✓ page 92
G4-EN2
43-45
✓ page 92
G4-DMA
8-11
✓ page 92
G4-EN3
46
✓ page 92
G4-EN4
46
✓ page 92
G4-EN5
72 CSR Abengoa 2014
G4-EN6
46 and 47
✓ page 92
G4-EN7
46 and 47
✓ page 92
G4-DMA
8-11 and 47
✓ page 92
G4-EN8
47
✓ page 92
G4-EN9
47
✓ page 92
G4-EN10
47
✓ page 92
G4-DMA
8-11
✓ page 92
G4-EN11
48
✓ page 92
G4-EN12
48
✓ page 92
G4-EN13
48
✓ page 92
G4-EN14
48
✓ page 92
Energy
–
Water
Biodiversity
ABENGOA
BIOENERGY
page 100
Page
Omissions
External Assurance
Emissions
G4-DMA
8-11 (Materiality disclosures) and 49 (GHG emissions)
✓ page 92
G4-EN15
49 and 50
✓ page 92
G4-EN16
49 and 50
✓ page 92
G4-EN17
49 and 50
✓ page 92
G4-EN18
29 Abengoa in figures. It is calculated by the produced saving.
✓ page 92
G4-EN19
50
✓ page 92
G4-EN20
50
✓ page 92
G4-EN21
50
✓ page 92
G4-DMA
8-11 and 51
✓ page 92
G4-EN22
51
✓ page 92
G4-EN23
51 and 52
✓ page 92
G4-EN24
51
✓ page 92
G4-EN25
51 and 52
✓ page 92
G4-EN26
51 and 52
✓ page 92
G4-DMA
8-11
✓ page 92
G4-EN27
52 and 53
✓ page 92
G4-EN28
16, 19, 30 and 52
✓ page 92
G4-DMA
8-11 and 54
✓ page 92
G4-EN29
54
✓ page 92
Effluents and waste
Products and services
Compliance
ABENGOA
BIOENERGY
page 101
Page
Omissions
External Assurance
Transport
G4-DMA
8-11
✓ page 92
G4-EN30
47 and 49
✓ page 92
G4-DMA
8-11
✓ page 92
G4-EN31
54 and 55
✓ page 92
G4-DMA
120 and 124 CRS Abengoa 2014
✓ page 92
G4-EN32
124 CSR Abengoa 2014
–
G4-EN33
119 and 120 CSR Abengoa 2014
–
Overall
Supplier environmental assessment
Page
Omissions
External Assurance
Category: social performance
Labour practices and decent work
Employment
G4-DMA
8-11
✓ page 92
G4-LA1
31, 67 and 68
✓ page 92
G4-LA2
23 and 75
✓ page 92
G4-LA3
70
✓ page 92
ABENGOA
BIOENERGY
page 102
Page
Omissions
External Assurance
Labor/management relations
G4-DMA
8-11
✓ page 92
G4-LA4
76 and 77
✓ page 92
G4-DMA
8-11 and 68
✓ page 92
G4-LA5
68 and 69
✓ page 92
G4-LA6
73
✓ page 92
G4-LA7
68
✓ page 92
G4-LA8
76 and 77
✓ page 92
G4-DMA
8-11 and 71-73
✓ page 92
G4-LA9
31 and 71-73
✓ page 92
G4-LA10
71-73
✓ page 92
G4-LA11
72
✓ page 92
G4-DMA
8-11
✓ page 92
G4-LA12
57, 67, 68 and 74
✓ page 92
G4-DMA
8-11
✓ page 92
G4-LA13
74 and 75
✓ page 92
G4-DMA
120 and 124 CRS Abengoa 2014
✓ page 92
G4-LA14
–
G4-LA15
–
Occupational health and safety
Training and education
Diversity and equal opportunity
Equal remuneration for women and men
Supplier assessment for labor practices
ABENGOA
BIOENERGY
page 103
Page
Omissions
External Assurance
Labor practices grievance mechanisms
G4-DMA
✓ page 92
G4-LA16
–
Page
Omissions
External Assurance
Human rights
Investment
G4-DMA
8-11
✓ page 92
G4-HR1
87 and 88
✓ page 92
G4-HR2
87 and 88
✓ page 92
G4-DMA
9-11 and 42-43
✓ page 92
G4-HR3
74
✓ page 92
G4-DMA
8-11
✓ page 92
G4-HR4
78-80
✓ page 92
G4-DMA
8-11
✓ page 92
G4-HR5
68, 69 and 78
✓ page 92
G4-DMA
8-11
✓ page 92
G4-HR6
38-40 and 78
✓ page 92
Non-discrimination
Freedom of association and collective bargaining
Child labor
Forced or compulsory labor
ABENGOA
BIOENERGY
page 104
Page
Omissions
External Assurance
Security practices
G4-DMA
8-11
✓ page 92
G4-HR7
38-40
✓ page 92
G4-DMA
8-11
✓ page 92
G4-HR8
74 and 75
✓ page 92
G4-DMA
8-11
✓ page 92
G4-HR9
74
✓ page 92
Indigenous rights
Assessment
Supplier human rights assessment
G4-DMA
28, 120 and 124 CSR Abengoa 2014
–
G4-HR10
–
G4-HR11
–
Human rights grievance mechanisms
G4-DMA
8-11
✓ page 92
G4-HR12
76 and 77
✓ page 92
ABENGOA
BIOENERGY
page 105
Page
Omissions
External Assurance
Society
Local communities
G4-DMA
8-11 (Materiality disclosures)
✓ page 92
G4-SO1
42, 43 and 78-82
✓ page 92
G4-SO2
23, 24, 42 and 77
✓ page 92
G4-DMA
8-11
✓ page 92
G4-SO3
60 and 61
✓ page 92
G4-SO4
60 and 61
✓ page 92
G4-SO5
60 and 61
✓ page 92
G4-DMA
8-11
✓ page 92
G4-SO6
61
✓ page 92
G4-DMA
8-11 and 54
✓ page 92
G4-SO7
60 and 61
✓ page 92
G4-DMA
8-11 and 54
✓ page 92
G4-SO8
61
✓ page 92
G4-DMA
✓ page 92
G4-SO9
–
G4-SO10
–
Anti-corruption
Public policy
Anti-competitive behavior
Compliance
Supplier assessment for impacts on society
ABENGOA
BIOENERGY
page 106
Page
Omissions
External Assurance
Grievance mechanisms for impacts on society
G4-DMA
60 CSR Abengoa 2014
✓ page 92
G4-SO11
–
Page
Omissions
External Assurance
Product liability
Compliance
G4-DMA
8-11 and 54
✓ page 92
G4-PR9
61
✓ page 92

abengoa bioenergy - csr 2014

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