Abengoa Water Corporate Social Responsability - Annual Report

2 / Corporate Social Responsability / 2013 Annual Report ABENGOA WATER

I write these lines with the mind set

on a date, March 22, World Water

Day, celebrated every year since 1994

following the United Nations

Conference for Environment and

Development held in Rio de Janeiro in

1992 (Rio Summit). This is especially

true when this year, 2014, the slogan

of the day is Water and Energy, an

inseparable combination that

highlights the importance concerning

the production, treatment and

management of water as a model for

sustainable development and

responsibility to ensure its availability

not only in time but also in quality

and quantity sufficient for the

population.

Against this background Abengoa

Water, with a progressive

international presence in several

countries and sales in markets outside

Spain, contributes daily, on a drop by

drop basis, to ensure sustainability of

water resources while, at the same

time, consolidating a growth strategy

based on innovation, sustainable

development and the reduction of

social, economic and environmental

risks.

To become worldwide models in the

water sector we focus our activity on

strategic lines of business

development related to desalination,

new markets in water treatment,

geographical diversification, widening

our range of activities, exploiting

synergies and providing services to

other companies within Abengoa, as

well as innovation and development

of in-house technologies.

Global assessment of the results for

2013 is positive. This is thanks not

only to our strong commitment to R&D

within a sustainable management

model but also to the commissioning

of the plant in Qingdao (China),

achieving sales growth of 21.4 M€

and representing a percentage

increase of 42.3 % over the previous

year; a consolidated turnover of

72 M€.

In the same way, last year’s 2013

consolidated EBITDA is 37.2 M€, with

a percentage increase of 218 % over

2012. Thus, the profitability, defined

as the ratio of EBITDA over sales is

51.7 % in 2013 which, compared to

2012, represents a differential of 28.6

percentage points and reflects the

robustness and stability of Abengoa

Water’s business model.

In 2013 the potential production

capacity of Abengoa Water has been

to 224.5 Mm3 of water per year, with

an actual production of 102.17 Mm3

in 2013, higher than that of 2012. In

2013 the potential global production

capacity was obtained from the five

operating plants in Skikda (34.65

Mm3 per year), Honaine (25.03

Mm3 per year), Chennai (33.98

Mm3 per year), Almeria (4.65 Mm3 per

year), Cartagena (1.07 Mm3 per year)

and Qingdao (2.79 Mm3 per year).

R&D plays a key role in the water

sector, both in improving the

production process efficiency and in

the development of new

technologies. Today we have a strong

portfolio of R+D+i projects and

initiatives, some of which will become

future business as technologies are

developed and their feasibility is

tested on a commercial and industrial

scale. Having invested in 2013 a total

of € 4.7 million in 2013, following the

same line as the previous year,

demonstrates our clear commitment

to innovation and R&D+i in water

treatment technology.

The Abengoa Water team brings

experience, know-how and value in

both the technologies employed and

the business model as we try to have

(and keep) the best talent committed

to the vision and mission of the

organization. At the end of 2013

Abengoa Water has 391 employees, a

considerable increase compared to

the 369 that made up the staff in

2012.

As relevant events for Abengoa Water

in 2013 we could highlight the

Honaine desalination plant in Algeria,

which started operations on July 12,

2012 and has remained in production

ever since. With a capacity of 200,000

m³/day, this is now the largest

desalination plant in operation of

Abengoa.

We must also emphasize the

importance of reactivating the

construction of the desalination plant

in Ténès in the same country, which

will begin operation and maintenance

during the summer of 2014. Also

notable is the commissioning in

January 2013 of the desalination plant

in Quigdao (China), with a capacity of

100,000 m3/day and the satisfactory

progress of construction in Ghana of

the Nungua desalination plant which,

with an investment of 96 M€, will

have a capacity of 60,000 m3/day

creating about 400 direct and

indirect jobs during the 24 months of

construction.

In 2013 we were awarded the

"Global Water Awards" organized by

01 | Chairman’s report

Corporate Social Responsability / 2013 Annual Report / 3ABENGOA WATER

the prestigious publication Global

Water Intelligence (GWI) and the

International Desalination Association

(IDA).

And looking to the future, some of

the strategic goals to achieve in 2014

are to successfully accomplish the

construction within time and design

of the new plant in Ghana, to start

operating the plant in Ténès, to

allocate new projects in Morocco, the

United States and Ghana, to obtain

satisfactory results on pilot plant

experimental campaigns and to

advance in project tender process

relating to water reuse solutions.

In 2013, as in previous years, we have

submitted our internal control system

to an independent evaluation process

and our Annual Report incorporates

independent verification assessments

on financial statements through the

internal control system SOX

(SarbanesOxley).

Corporate social responsibility (CSR) is

one of the pillars of the present and

future strategy of Abengoa Water.

Therefore, we continue to pursue the

development and implementation of a

Master Plan in this field, the ultimate

aim of of which is the planning,

design and incorporation, of values

and actions, that are an integral part

of our strategy, into our everyday

activities, culture and organization. In

2013 Abengoa Water staff has

participated in donating time with 19

hours completed and 672 volunteer

hours of solidarity holidays.

We have improved the knowledge of

psychosocial risks of the company

with the ultimate goal of designing

actions to promote sustainability of

the organization at all levels. Also in

the Sustainability and CSR Committee

we attempt to identify and learn

relevant issues about the organization

based on a participatory process of

internal and external assessment,

based on our stakeholders.

As an important part of company

management, we also manage gas

emissions that are known to cause the

greenhouse effect (GHG) and, to this

end, carry out a specific plan that

seeks to measure and audit our

emissions as well as those of our

suppliers annually. With this

information, we plan actions to

reduce them. Our Carbon Footprint

analysis accurately reports the

environmental impact of our

organization in terms of our

performance with relation to climate

change. Emissions have been further

reduced compared to last year and we

are currently working to calculate and

manage our future Global Footprint.

Carlos Cosín Fernández

Chairman & CEO of Abengoa Water


In the near future we can envision a fact, which is intimately linked to climate change: water scarcity. This is a problem that

affects primarily areas experiencing greater desertification and aridity but that, according to the prediction of the global

climate change, could be extended to other, currently fertile territories.

Added to this problem is the current lack of water treatment plant, and the fact that industries are large consumers of water

and depend on this resource for their normal operation, this makes water management as critical an issue for their survival as

is the supply of energy.

Large investments are needed to upgrade existing facilities and develop new infrastructures with which the problems of

scarcity and pollution of water resources can be alleviated. Countries and governments do not usually have the financial

resources to address these problems and on many occasions the solution cannot wait. Water is needed. This opens a huge

market opportunity for companies in the private sector that, through public-private partnerships, want to invest in water

management. This means that infrastructure can be built using private equity and under concession, and here is where the

work of Abengoa Water comes in.

In this context, Abengoa Water bases its activity in five strategic developement axes:

1. Desalination; growing, consolidating and improving market position in desalination and in the geographical areas where

we already operate.

2. Development in new markets, strengthening our position in new markets such as wastewater treatment and purifica-

tion, reuse, as well as the outsourcing of industrial water.

3. Geographic diversification

4. Expansion of activity typology

5. Development of in-house technologies

The work, performance and scope of Abengoa Water is structured under four main lines of activity:

• Managing the concessions of water treatment plants, including design and construction phases. (AW Concessions).

• Operation and mantenance of water treatment plants(AW Services).

• Water treatment solutions (AW Processes&Systems).

• Development of new technologies through R&D+i (AW Technologies).

02 | Abengoa Water’s Profile

2.1 Abengoa Water and the sustainable water management.


Abengoa Water has its registered office and its headquarters in the Campus de Palmas Altas, Abengoa in Sevilla (Spain)

located at C/ Energía Solar nº 1, CP 41014. There is also a work centre in Madrid (Spain) located in the Paseo de la Castellana,

43, 4ª Planta, CP 28046, and a technology centre and R&D+i centre in the Town of Dos Hermanas in Seville (Spain), Bda.

Fuente del Rey, extension C/ Don Remondo s/n, CP 41703.

Internationally, the company has offices in the USA (Austin, Texas), China (Beijin and Dailian), the UAE (Abu Dhabi) and Chile

(Santiago de Chile) and six concession offices in Algeria (Skikda, Honaine y Ténès), China (Qindao), India (Chennai) y Ghana

(Nungua).

Abengoa Water’s mission is to promote, develop, and operate water treatment plants, using cutting edge technology as a

vector of growth and consolidation, with the aim of creating customer value, promoting resource sustainability and

contributing to our employee’s personal and professional development in the communities where it operates.

The vision of the company is based on achieving international example in the water market, managing property assets, and

expanding reuse and industrial outsourcing while at the same time reaching a leading position in R&D desalination,

potabilisation, water treatment and water reuse technologies.

Among the most essential values of Abengoa Water are honesty and respect for the stakeholders involved in its activity, along

with the protection, defense and improvement of the environment, biodiversity and carbon footprint .

Abengoa Water’s value-added chain

2.2 Mission, vision and values

Water treatment

plants

Source of income

Plant Design and

construction

Sale of desalinated

water

Operation and maintenance

services

Desalination plants

Brackish water desalination plants

Industrial water plants

AlgeriaChinaIndiaGhana

AlgeriaIndiaSpain

Programmes under development:·Desalination·Water treatment and reuse·Membranes·Sustainable solutions

Lines of activity

Water treatment

plants

Operation and maintenance

Development of new

Technologies


Professionalism and sustainability form the foundation for Abengoa Water’s activity and growth, maintaining a permanent and

transparent digalogue with its various stakeholders (employees, customers, suppliers and community).

Abengoa Water ‘s management and growth model is based on:

• A business development model that seeks to develop solutions that help to create a more sustainable world.

• Maintenance and consolidation of a highly competitive human team..

• Development of a permanent strategy of value creation through the generation of new opportunities as well as defining

current and future business in a structured manner.

• Geographical diversification in markets with the highest potential.

• Investment in research, development and innovation activities.

These three aspects are supported by three management vectors:

• Transparency and rigor in management.

• Corporate Social Responsibility.

• Promotion of innovative and entrepeneurial spirit.

Company management is structured according to a functional organization that follows the company’s values and

developement lines:

2.3 Management, transparency and rigor

Abengoa Water

Corporate Services

AW Concessions(AWC)

AW Services(AWS)

AW Processes andSystems (AWP&S)

AW Technologies(AWT)

Desalination

Treatment & Reuse

Municipal

Industrial(Outsourcing)

EPC Supervision

Processes

AW Systems / Products

Membranes

Water treatment

Desalination

Sustainability

Business Development

USA China Rest of the World


Abengoa Water has implemented and certified an integrated quality management system (according to the international stan-

dard ISO 9001), an environmental management system (ISO 14000) and an occupational Health and safety system (OSHAS

18001) as effective tools for continuous improvement.

The company has received numerous international awards for its rigor and quality in the industry, among which we cabn high-

light the “Global Water Awards“ organized by the prestigious Global Water Intelligence (GWI) and the International Desalina-

tion Association (IDA), as being tone of the most important companies in reverse osmosis thechnology in terms of capacity.

The most significant market recognitions achieved to date include:

• International Developer of Hydraulic Infrastructures; Desalination Deal of the Year. Beni Saf (Algeria).

• Desalination Plant of the Year 2007. Phase I & II Cartagena (Spain).

• Desalination Company of the Year 2009. GWI.

• Desalination Deal of the Year 2010. Qingdao (China).

• Honorable Mention in the category “Water Company of the Year 2011”.



Desalination Plant of the Year 2007.

Cartagena phase I & II (España).

Desalination Deal of the Year 2010. Qingdao

(China).

Desalination Company of the Year 2012. GWI.

International Developer of Hydraulic

Infrastructures; Desalination Deal of the Year. Beni Saf (Argelia).


Mención de honor en la categoría “Water

Company of the Year 2011”.



Abengoa Water is present in four of the five continents with clients located in USA, China, Magreb, Middle East, India, Latin

America and Subsaharian Africa.

Abengoa Water provides innovative solutions for private clients, mainly related to industrial sectors of mining, fuel (oil & gas)

and all those who require water resources for the developement of their production processes. On the other hand, in the public

sector, Abengoa Water works with agencies and authorities in countries in which there is significant demand for new

infrastructure development related to the water sector.

2.4 Presencia internacional

2%

0,5%Office

Project

Staffdistribution

1%

21%

58%

0,5%8%

9%

%

Sales by geographical areas (millions of euros)

19.6 20.0

Spain EMEA Asia Rest of countries Total

23.225.3

6.1

26.5

1.7 0.20

51

722012*

2013

(*) 2012 data differ from

those published in the

report of that year, in

accordance with the

changes in the

consolidation criteria of

the 10 IFRS accounting

rules affecting CCAACC


Main magnitudes

increase of total sales over 2012

million of EBITDA

million invested in R&D and innovation

R&D projects under

development

patents applied for

people dedicated to R&D and innovation

42% 37.2 4.7 34 5 40

reduction of Carbon footprint (label) compared

with 2012

Over 100 million cubic meters of potable water

generated

Average hours of training for

employees of the company

Abengoa Water

employees, 5.90 % more than in 2012

volunteer hours

10% 100 132 391 672

2.5 Abengoa Water’s relevant figures

Economic Dimension

Environmental Dimension Social Dimension


Economic Data (millions of euros) 2013 2012 (*)

Sales 72.0 50.6

EBITDA (*) 37.2 11.7

Net Profit after taxes 3.8 3.4

Net Cash Flow 39.5 30.7

Total Assets 620.2 546.3

Own Resources 42.8 40.0

Net financial Debt -360.7 -387.4

Margen Operativo (% EBITDA / sales) 51.7 % 23.1 %

Return of Equity (ROE) 8.8 % 8.5 %

Return of Assets(ROA) 0.6 % 0.6 %

EBITDA/employees (K€) 0.1 0.0

Sales/employees (K€) 0.2 0.1

Sales by lines of activity (millions of euros) 2013 2012 (*)

Promotion of water treatment plants (AW Concessions) 40.3 26.5

Operation and maintenance (AW Services) 16.7 15.5

Development of new technologies R&D+i (AW Technologies) 15.0 8.5

Total 72.0 51

(*) EBITDA: Earnings before interest, tax, depreciation and amortization.

(*) 2012 data differ from those published in the report of that year, in accordance with the changes in the consolidation criteria of the 10 IFRS accounting rules

affecting CCAACC

Economic magnitudes breakdown


Corporate Social Responsibility (CSR) is a key strategic factor in the development of Abengoa Water’s activity at all levels, and

has been one of the pillars of its strategy since its foundation.

CSR is fully aligned with our activity from the approach of policy, management model, behaviour and management system of

the company, considering each and every one of its dimensions:

• Legal dimension, fully respecting current legislation in each and every one of the actions of the company.

• Economic dimension, creating value and sustained growth.

• Human Dimension, protecting human rights.

• Social dimension, supporting the development of the communities where Abengoa Water is present.

• Environmental dimension, respecting and ensuring environmental protection.

03 | Corporate Social

Responsibility

The Corporate Social Responsibility of Abengoa Water is based on:

• The Code of Professional Conduct (defined at Abengoa level)

• The corporate governance structure.

• The sustainable development model.

• Internal and external audit of all its divisions and performances.

• A policy of supporting the communities where it operates.

The benefits of the strategic approach to CSR are multiple, such as better management of reputation, attracting and retaining

talent; greater competitiveness, better market positioning, increased operational efficiency and cost reduction; not to mention

improving the relationship with the supply chain and the community, reducing environmental risks, access to a greater number

of sources of capital and the generation of opportunities.

Abengoa Water has continued working during 2013 to achieve sustainable growth together with the integration of CSR in its

activity, working to ensure that the possible impact of its activity is positive for society and the environment through ethical

behaviour that contributes to the welfare of all in alignment with our business model.

3.1 Our policy and main aspects in CSR


Relations with our stakeholders are a key milestone and focus our efforts on improving the efficiency of the channels of

dialogue and communication with them.

Bearing in mind the perception and opinion of our stakeholders, we have identified key aspects of CSR based on Abengoa

internal procedure (see section 6.1.), which has led to a number of issues relevant to the organization:

• Work practices:

- Attracting and retaining talent.

- Diversity and equality of opportunities.

- Freedom of association.

- Stable employment.

- Conciliation Work / Family.

• R&D; improved efficiency and new business lines. Development of differentiating technologies that contribute to

competitiveness.

• Human Rights.

• Involvement of communities and local authorities in decisions affecting plant location.

The Master Plan sets the framework and guidelines to be followed in CSR by defining strategic actions that integrate the

expectations of stakeholders and enable us to develop our capabilities and business model.

The Plan is organized and structured around the three horizons of Mckinsey that allows simultaneous operation of three

scenarios depending on the degree of development and implementation of each of the areas.

In Abengoa Water we have been working since 2012 on developing our CSR Master Plan, taking as its starting point the CSR

Master Plan of Abengoa. This defines thematic work areas and lines of work, objectives and expected results. This Plan was

prepared in 2013 in its first edition (June), and it will undergo updates whenever considered necessary in order to improve

management and social responsibility.

Our commitment to social responsibility is articulated in this document and we try to adapt the concepts to the reality of our

business. In this plan we analyze the relevance and application of these areas and lines of work in Abengoa Water, assessing

the degree to which they have been achieved and defining different actions for each of the lines of work as well as

responsibilities, deadlines, monitoring indicators, resources and deliverables.

Our CSR Master Plan is subject to quaterly review and monitoring (quarterly) to assess the level of compliance, goals, actions

and status of indicators on this regard.

3.2 CSR Master Plan


The plan includes a total of 62 executable actions, of which 29 % are under analysis, 6 % are in progress or have been started

and 65 % have been developed and implemented in the company.

Abengoa Water is a company with a presence in several countries and with a significant number of employees and related

companies, all of which require a commitment to transparency in management and governance. This is the foundation of the

relationship with stakeholders and creates added value, improves communication with third parties, seizes opportunities and

optimizes strengths.

Thus Abengoa Water is committed to fluid communication with all of its stakeholders by appropriate communication channels.

Abengoa Water provides a set of tools and procedures to ensure the development of its activities in accordance with all laws,

values, norms, procedures and standards that may apply and that are generated either by them or by others.

In this respect, there is an accessible Code of Conduct for all employees on the Abengoa website and Connect@ and, since

2007, established complaint channels available in accordance with the requirements of the Sarbanes-Oxley Law: internal

channel for employees via intranet. There is also an external channel available to third parties (accessible online) so that they

can report suspected irregularity or fraudulent acts contrary to the Code of Conduct.

Abengoa Water has also designed training processes for staff that analyzes psychosocial risks of the organization and

periodically conduct surveys of employees’ working environment. These are designed to establish their perception about the

ethical, integrity and compliance climate in the organization.

Likewise, our company has a specific system for determining the level of compliance of the organization with situations where

sanctions have been received and/or significant fines (both of criminal and administrative character) related to issues such as

environment, marketing communications, supply and use of products and services, privacy and leaking of customer data,

monopolistic anti-competitive practices related to indigenous rights violation incidents, accounting fraud, corruption,

discrimination in the workplace , etc.

Abengoa Water considers, treats and manages aspects and issues related to CSR, analyzes and solves the notifications that may

be received through the ethical channel. It should be noted that there were no notifications received in 2013.

3.2.1 Integrity and compliance. Transparency and good governance


Abengoa Water carries out a plan of action and dialogue with all the stakeholders with whom it interacts.

The main direct stakeholders of Abengoa Water are their own employees, customers, suppliers, local communities in which it

operates, and society in general, including the media, government and public bodies, either in the status of contractors, as

legislators or as sources of funds.

Abengoa Water provides resources and efforts to generate a sustainable relationship of trust with its stakeholders through

various communication channels to suit the characteristics of each of them while, at the same time, creating and/or developing

new ones in response to a constantly evolving environment.

The channels of dialogue with Abengoa Water stakeholders are shown below, as well as those channels available through

Abengoa.

3.2.2 Dialogue with stakeholders

Channels of dialogue with Employees

From AW to Stakeholder Stakeholder to AW

Website and Business units Website and Business units

Corporative Intranet: Connect @ Corporative Intranet: Connect @

Employee Website Employee Website

People centre People centre

Manual host HR partner

Internal Newsletter Social Responsibility Committee

Social Responsibility Committee Commission for Equal Treatment and Opportunity (Abengoa)

Commission for Equal Treatment and Opportunity (Abengoa) Online tranining

Online tranining through Campus Abengoa Internal reporting channel

Annual Report E-mail

E-mail Evaluation surveys

360 manager feedback Programme

Laboral climate surveys

Social asistance for employee

In this context, in 2013, Abengoa Water relied on the Abengoa website to inform suppliers and contractors about the Code of

Conduct and the possibility of using the complaints mechanisms that are stated within it.

New challenges

In order to consolidate and strengthen the culture of compliance and integrity of the company, some new challenges arise

such as:

- Inclusion of a clause in contracts informing about the Code of Conduct and the ability to use reporting mechanisms.


In this process of dialogue Abengoa Water considers the proposals and recommendations of the Independent Panel of Experts

on Sustainable Development (IPESD), which is composed of independent professionals of international renown in the

environmental, social and economic areas. Their results and conclusions are considered in the analysis of Relevant Matters by

Abengoa (see paragraph 6) that are subsequently incorporated into the procedure governing the identification of these relevant

issues in Abengoa Water.

New challenges

- Prepared detailed map of stakeholders with update and communication procedure.

- Critical prescribers perception and confidence assessing procedure

Channels of dialogue with Customers


Website and Business units Stakeholder mailbox on corporative website

Customers working days Customers working days

Fairs, forums and conferences Fairs, forums and conferences

Advertisement and marketing Regular visits to customers

Annual report Satisfaction surveys

Channels of dialogue with Providers


Website and Business units Stakeholder mailbox on the website and business Display Units

Suppliers working days Suppliers working days

Fairs, forums and conferences Fairs, forums and conferences

Annual report Satisfaction surveys

Channels of dialogue with Society


Website and Business units Stakeholder mailbox on the website and business Display Units

Fairs, forums and conferences Communication department

Attendance and participation in meetings with universities and schools Fairs, forums and conferences

Annual report Attendance and participation in meetings with universities and schools

Focus Abengoa Foundation website Social group visits to plants

Press releases

Social group visits to plants


Abengoa Water has a CSR risk assessment system that allows identification of key environmental and social risks. This

evaluation system, developed by Abengoa, allows the consolidation of risk management at all facilities, identification of risks,

while promoting dialogue and resolution of conflict between management and stakeholders.

Any investment made is accompanied by a risk analysis with the corresponding measurement and evaluation of these issues;

this in order to minimize potential impacts of contingencies regarding the business model.

In 2013 Abengoa has reviewed the risk of CSR included in the Universal Risk Model, introducing as inputs for calculation the

results of the CSR risk analysis performed annually in relevant facilities for the organization and evaluating, from three different

perspectives, the nature of the facility itself, the failure to meet the targets and the perception by others. A total of 27 risks

associated with the most relevant areas of the organization have been analyzed.

In this context, in 2013 Abengoa Water has also carried out an analysis of psychosocial risks in the organization in order to

clarify the situation in the field, and if necessary, propose actions for improvement.

3.2.3 Risk Management

To maintain a good reputation is essential for Abengoa Water and therefore, as it is stated in Abengoa’s Code of Conduct that

governs working relationships within the company amongst its members and between them and their stakeholders, values such

as honesty, integrity and good judgment of employees and directors stand for the success of the organization.

Given its international character, Abengoa Water takes great care to avoid extortion, fraud and bribery, following the provisions

of U.S. law on corrupt practices abroad, U.S. Foreign Corrupt Practices Act (FCPA), a complement to the requirements

established by the section 404 of Sarbanes Oxley (SOX).

Also, as discussed in section 3.2.1, we made available to employees a specific complaint channel (through the Abengoa

website), which serves as a tool to raise any possible irregularity in this regard.

During 2013 we have planned and provided information and carried out specific training activities for all staff on common

management systems within Abengoa Water. These have highlighted specific procedures for managing corruption risk and

have resulted in the establishment of anti-corruption policies. A computer application, based on these common systems and

that can be accessed by all users (employees) at any time, has also been developed.

3.2.4 Fight against corruption


As a part of its strategy towards the goal of sustainable development Abengoa Water places emphasis on:

• Service to its customers.

• Professional and personal development of its employees.

• The development of sustainable water solutions with total respect and care for the environment.

• The growth of the communities where it operates.

• The offer of new services, technologies and innovative solutions for the management of water resources.

The business processes are carried out by an integrated management system (GIS), which since 2012 holds the triple certifica-

tion by AENOR, an independent entity accredited by ENAC (Spanish National Accreditation Entity):

- UNE EN ISO 9001: 2008 for quality.

- UNE EN ISO 14001: 2004 environmental management.

- OHSAS 18001: 2007 on Occupational Health and Safety and Improving Health and Safety conditions for workers.

Regular auditing by internal auditors as well as by AENOR and Corporate Auditors (Abengoa) and within the framework of

this management system, ensures that its operation, performance, and management of information is complete, transparent

and truthful.

Abengoa Water follows the GRI (Global Reporting Initiative) guidelines for defining, monitoring and measuring parameters of

sustainability of the company, and maintains an updated sustainability indicator panel, based on this scheme, that serves for

monitoring and measuring the performance of the company and the SGI.

Using this monitoring panel (where we can find the ISA - Environmental Sustainability Indicators), we obtain reliable informa-

tion on social, environmental and economic aspects, parameters that assist in strengthening management efficiency, impro-

ving decision making and minimizing associated risks.

04 | Our commitment;

Sustainable Development


4.1 With our stakeholders

People are the principal value-generating asset and fundamental wealth of the organization and, therefore, Abengoa Water

places high importance in creating ideal conditions for staff development in order to promote talent and achieve excellence.

4.1.1 Employees

2012

2013

Engineersand graduates

ProfessionalAssistants

Workers Intern workers TotalDirectors Managers

391369

1413

124126

4847

1048681722520

Human capital professional categories

184(31-40 years)

88(20-30 years)

3(>60 years)

19(51-60 years)

83(41-50 years)

279(Male)

98(Female)

2013 staff

(*) Intern workers not included.


As of December 31, 2013, Abengoa Water staff amounted to 391 people, including trainees, a number significantly higher

than in 2012.

The employee rotation (voluntary off periods) in 2013 was 2 more than 2012 in which there were none; a positive aspect of

management.

As for the number of executives per country, there are 15 based in Spain and 5 located outside Spain; a maintenance of overall

levels.

Talent atracción, developement and preservation

Abengoa Water works to attract, develop and retain talent ensuring it has the profiles required for the implementation of its

strategy and objectives.

Abengoa Water encourages and facilitates internship programs through agreements with universities, vocational training

institutes and business schools, through Abengoa Foundation FOCUS and in specialized professional networks used as a

recruiting tool to identify talent.

There is a full program of management skills for performance evaluation and professional development of all employees.

Assessment is undertaken using a computer application called ‘People Center’; a programme based on 23 established

competencies.

Abengoa Water actively participates in identifying potential managers and, once identified, assists them in the process of

developing their talent through the Executive Development Program, a complement to the Intercom Plan, a process that

enhances talent identification programs and professional projection profiles.

We also have a specific system of evaluation methodology based on a 360-degree feedback for Managers, a feature that is

implemented for everyone.

In 2013 a psychosocial risks assessment in collaboration with a group of external experts and the university was undertaken. In

this study, aspects of labour and social climate in the organization were identified and this provides the basis for the planning

and execution of improvement actions.

15Spain

1USA2

Algeria

2China

0 in India y Ghana

Geographical area


Abengoa Water, based on the monitoring of its CSR Plan actions and challenges during 2013, has considered to address the

challenge posed in 2012 by introducting a Tutor figure for new incorporations. Thus the objective is achieved by the company’s

organizational structure.

New Challenges

- Establishment of an action plan for the worst valued items in the climate survey.

- Development of professional itineraries.

- Extension of competency management to companies in USA.

Training

Staff training is one of essential aspects of company policy with a total of 23,173.61 hours of training provided during the year

2013. 97 % of this was performed within the company Abengoa Water, which represented an average of 131.59 hours of

training per company employee.

Training modalities or types that are carried out are:

• Corporate training: training activities are designed to increase the level of corporate knowledge and protocols for employees,

with the transmission of both the culture and the values of Abengoa.

• Technical training: training actions aimed at developing the expertise, skills and abilities that allow staff to adapt to new

technologies and new knowledge.

• Generic training: training activities aimed at developing generic skills, abilities, attitudes and personality traits necessary for a

better adaptation to present and/or future activities and situations.

• Environmental training: specific training activities in the area of environmental management of the company.

• Training in quality: specific training activities on quality management.

• Administration and finance training: Specific training activities in the area of financial knowledge.

• Prevention of accidents at work training: training aimed at reducing workplace accidents in the companies and improving

safety conditions in the workplace.

• Language training: training aimed at the acquisition, improvement and / or upgrading of language skills in professionals.

• Specific training: training for each area of knowledge of the various divisions and departments of company performance such

as business development, organization, management, design, construction, operation and maintenance, concessions,

innovation and solutions, etc.


Note: To calculate the average number of training hours per employee in the preceding table, hours of professional internship

have not been taken into account and the average staff data does not include information on interns.

Abengoa Water has its own courses catalogue tailored to its own needs and objectives which prioritizes e-learning .

New challenges

- Training in social responsibility and sustainable development in our work centres, based on the information pack about water,

Abengoa Water and sustainable development.

This challenge was proposed in 2012 CSRR but remains for this period as it is in the process of development (structure design).

Its completion is planned for the end of 2014.

Work policy

As part of Abengoa's accession to the United Nations Global Compact and under the Code of Conduct, Abengoa Water

operates under a policy of job responsibility, integrated in its management model that ensures continuous improvement in

social performance with particular commitment to:

• Integrating work social responsibility management into the corporate strategy of the company.

• Ensuring compliance with the applicable legislation and any other legal commitment in this area.

• Promoting the principles of the Global Compact in its scope.

• Promoting and fostering personal and professional development of company employees and encouraging the creation of

suitable working conditions as well as promoting a culture of lifelong learning.

• Recruiting, hiring, training and promoting qualified professionals to carry out their professional activities, regardless of race,

religion, colour, age, sex, marital status, sexual orientation, nationality and physical or mental disability.

• Ensuring an adequate safety culture according to the policy of prevention of occupational risks of the company and its

management system, OHSAS.

• Creating the necessary conditions to facilitate a positive balance between the personal and professional lives of employees.

• Evaluating and revising the social behaviour of the company, transparently reporting on it, and establishing continuous

improvement programs.

Abengoa Water has the figure of the Employee Coordinator, who acts as a representative for the workers and provides a

mechanism to channel and address issues regarding employees to the president of the organization. There is also an ethical

Training type Assistants training actions Hours carried out

Languages Training 73 5,334.50

Corporate training 1,679 5,019.36

Occupational Risk Prevention Training 373 1,314.50

General training 965 11,505.25

General Total 3,090 23,173.61


channel and, as has been discussed in previous sections of this document, an employee website through which suggestions,

contributions and improvements proposed by the staff are centralized and managed.

Retribution policy

The remuneration system Abengoa Water meets legal requirements and takes into account the capacity, performance and

quality of work. It also ensures equal treatment and opportunities for staff not making differences of gender, job category or

geographical location.

The following table shows the percentage difference between the initial average salary compared to local minimum wage

(SMI), considering different professional categories for companies. Which account for over 80 % of the workforce.

Social benefits

In order to achieve an appropriate climate or work environment for appropriate commitment to the organization, both full-time

and part-time staff are provided with social benefits that promote an equitable work-life balance within the framework

established for such purpose by Abengoa.

Among the benefits offered in 2013 we note:

• Life and accident insurance.

• In-house catering on the Palmas Altas campus.

• Scholarships.

• Flexible Compensation Plan for employees of Abengoa companies in Spain. This includes childcare checks, health insurance,

training opportunities and computer equipment.

• Gyms to practice physical exercise and spaces for group activities, as well as organizing and participating in internal tourna-

ments and other sporting activities.

• Subsidized child care at the Palmas Altas campus.

• Medical Service to improve health cover for employees in workplaces with more than 300 people.

• Permission of absence with guaranteed job reinstatement after a period of maternity or paternity leave. During 2013, 100 %

of the employees who requested maternity or paternity leave have returned.

• Pension Plans are designed taking into account the peculiarities of each of the countries in which the company operates,

Spain 9,034.2 29,761.4 17,028.0 24,326.0 229.4 188.5 242.1

Algeria 2,058.1 4,573.45 - 4,573.5 222.2 - 222.2

India 555.2 5,554.87 2.063,2 1,904.5 1,000.6 371.6 343.1

Miw Graduate Administrative Operator Graduate Administrative OperatorAssitant Assitant

2013 Average wage paid per month

Categories income €

Percentage paid

Above Miw


applying the rules of each region.

• Social care.

• Summer Residence in La Antilla (Huelva), available at affordable prices for all employees.

• Flexible hours in the main work centres.

• Employee social assistance: through the social action department, for tracking personal, family, social, or economic problems.

• Social Fund to financially assist employees in times of need, through the Focus- Abengoa Foundation.

• Free shuttle between the Palmas Altas campus with several points in the city of Seville.

Human Rights Protection

The international projection and strategy of Abengoa Water make it necessary to look after adequate respect for human rights

within the organization, both within its value chain and the areas of influence in which it operates.

In this sense, the company prohibits forced labour and child exploitation and supports any action to eradicate this practice

within its power. Abengoa Water undergoes continuous evaluation and review of all its operations, especially in measuring its

impact on human rights, and does so in the more than 14 companies operating in continents where activities are implemented.

All employees are under the scope of labour regulations, regardless of the nature of the activity or countries where they are

located. In a complementary manner, and apart from being under local legal protection in each country of operation, policy

cover is particularly important. This is materialized by means of collective agreements in the sector, territorial agreements or

pacts signed with the workers, unit representatives or trade unions, as appropriate.

Water Abengoa respects and supports the free association of workers, which is considered a right and which it promotes and

guarantees through dialogue and permanent information to its representatives in each division or department.

Prior information of any structural, functional or organizational change is guaranteed and available to employees, either

individually or through their representatives or guardians of areas, according to the notice periods set out in legislation and

collective agreements.

Abengoa Water assumes all these principles into their working practices and has established internal mechanisms to look after

the performance of its employees according to the Universal Declaration of Human Rights of the United Nations and its

protocols.

Training is one of the most important tools we have to prevent incidents related to the violation of human rights. This is

implemented by investing in schemes to inform employees of the corporate culture as well as the mission, vision and values of

the organization and the Code of Conduct.

The protection of fundamental human rights is integrated into the procurement process in which suppliers and subcontractors

sign a voluntary adherence to a Code of Social Responsibility (CRS ), which specifies and communicates the policy on the

matter.

During 2013 there have been no claims, incidents or complaints in the field, no activities involving risks on discrimination,

freedom of association, child labour or forced labour, or violation of human rights detected and/or related cases with the

violation of the rights of the population of places, territories and communities in which the company operates.


New challenges

-Initial Diagnosis to implement and certify SA 8000 standard in the organization.

Health and safety

The company integrates the occupational risk prevention in its strategy and applies it in all areas, organizational levels as well as

with staff, subcontractors and business lines.

The policy of risk prevention of Abengoa Water is drawn up to comply with industry regulations applicable in the communities

and countries in which the company operates.

Abengoa Water has implemented a method for risk assessment in all workplaces. This has been developed with input from all

employees as well as a specific system for control of contractors.

Under the prevention policy of Abengoa Water and Common Management Standards, a Prevention Committee exists as a

monitoring and control body composed of company management, responsible persons for each area, and technicians from

preventative service. The committee, which meets quarterly, sets objectives, analyzes the evolution of workplace accidents

together with the corresponding statistical indicators in the field, and does the annual Planning of Preventive Activities (PAP),

based on the results of risk assessment, reports on problem solving (IRPs), improvement actions (AMs), the internal and external

audits reports and the implementation of new legislation.

Awareness, information and training of staff is encouraged, in order to build a strong safety culture, which is evident with the

achievement of the internal goal of zero accidents in 2013.

Some of the most relevant aspects or indicators in this regard in 2013 are:

• The incidence rate of accidents is 0, a considerable improvement on 2012.

• The severity index is 0, lower than that obtained in 2012.

• Absenteeism resulting from accidents stood at 0.0013 %, down from 0.02 % in 2012.

• The total percentage of absenteeism was 1.88 %, slightly exceeding the 2012 figure (1.15 %).

• The common disease -related absenteeism was 0.85 %, down from 1.08 % in 2012.

Many training activities in the field of security and ORP have been carried out during 2013, a feature which reflects in the

former good results, such as emergency Plan, Road Safety, Biological Agents, risks at plants PVD, etc.


As mentioned in section 2, Abengoa Water serves customers located in Spain and many other countries including United

States, China, North Africa, Middle East, India, Latin America and sub-Saharan Africa.

The company works for private clients, organizations and public authorities in areas and countries where there is a significant

demand for the development of new water-related infrastructure. Abengoa Water has the appropriate tools for the

management of its clients’ portfolios, among which stands the implementation of the computer application ‘Business

Development’. Through this tool negotiations with each client are coordinated by taking advantage of the great potential for

synergy between Abengoa companies. Through this management model we avoid duplication, anticipate and channel

customer needs to group companies and thus improve the effectiveness of the treatment of our clients.

Client satisfaction

It is a company maxim to always try to meet customer expectations as their satisfaction is critical to ongoing business

development.

In Abengoa Water, besides guaranteeing innovative and reliable products, solutions and services, also implement, adapt and

improve systems and tools that reveal the expectations, opinions and satisfaction of our clients; this with the ultimate aim of

improving client perception.

For this purpose the following systems and tools are used:

• Customer satisfaction questionnaires.

• Questionnaires regarding the internal perception of staff satisfaction.

• Periodic internal and external (client/staff) meetings.

• Analysis of incidents, complaints and claims both internally and via customers' claims.

New challenges

In order to strengthen customer relations and feedback, Abengoa Water plans, within the framework of its CSR and

Management Systems Plan, to conduct a detailed review of systematic measurement of customer satisfaction with the aim of

improving efficiency and adaptability within the context of the relationship with each type of client.

Guarantee of compliance with requirements and agreements

Thanks to the tenets of the company GIS, mechanisms for identification, assessment, planning, control and monitoring have

been established. These mechanisms ensure compliance assessment of all industrial legal requirements applicable in each case,

as well as others of different nature that have been made and / or agreed with the client.

During the course of 2013 there have been no incidents of non-compliance with regulations and/or voluntary codes between

the company and its customers.

4.1.2 Clients


Communications , marketing and privacy

Abengoa Water considers this aspect not only as a key element for its activity but also as an essential means of communication

to project its corporate image and professional behaviour towards all external stakeholders.

The company has implemented an internal control procedure for external communications, details of which are contained in

the GIS system of the organization. This control system implies the existence of a chain or flow of internal approvals and

authorizations arriving, ultimately, to the president of the company and this ensures that these are aligned with company

strategy.

Abengoa Water guarantees validity, integrity and security of the information in its possession, especially that of a personal

nature relating to clients. To do this we have a security policy that protects all Abengoa Water companies.

During 2013 no incidents, complaints or problems have been identified regarding the privacy of customer data and / or

communications with clients.

In this context, Abengoa Water has communicated its performance and commitment in 2013 with regard to social

responsibility by publishing the performance information for the 2012 SCR report on the company’s website.

Abengoa Water has procedures that enable the management and control of its corporate reputation throughout the supply

chain and these also contribute to improve relations of trust between the company and its suppliers.

Abengoa Water providers generally belong to the construction management industry (Abeinsa 100 %). Other services, of

which up to 30 % is provided by companies belonging to the Abengoa Group of companies, are also provided. Other services,

such as those provided by lawyers and consultants, are externally sourced.

The company has specific procedures by which it manages purchases and it annually evaluates the behaviour and performance

of suppliers, who must be previously approved under criteria of social responsibility, sustainability and risk.

In 2013 no provider has been detected as being of critical risk so no specific audit has been applied to suppliers.

Importance of suppliers in developing

Abengoa Water is aware of the importance of suppliers in order to improve the level of competitiveness and market example

and ensure high added value, rigor and quality of the services provided to the end customer.

In this respect Abengoa Water promotes the integration and alignment of its suppliers in the activities, policies and

commitments of the company.

Abengoa Water seeks involvement of suppliers in the preparation of offers to customers, both in business development and in

meetings and presentations with customers that related to our solutions and proposals.

In Abengoa Water a key factor is participation of local suppliers in the implementation of their projects. This, in turn,

contributes to local economic development, the creation of local employment and population stability.

4.1.3 Suppliers


Code of Social Responsibility for Suppliers

Since 2012 Abengoa Water requires its suppliers to adhere to the Code of Social Responsibility (CRS) for suppliers and

subcontractors. This includes several clauses based on the principles of the UN Covenant, which are inspired by the

international standard SA 8000.

No incident or claim arising from any breach of the standards required from our suppliers and subcontractors with respect to

corporate social responsibility have been detected during 2013.

New challenges

In order to enhance quality supplier relationships, as well as ensuring their implication in sustainable development and in the

management and control of our corporate image we consider actions such as:

- Creation of a website section for suppliers which contains CSR information and other material related to this.

- Development of an information dossier on water, Abengoa Water and sustainable development, which is also oriented

towards our suppliers. This was proposed in 2012 SCR report and remains a challenge for 2014 as it is still in the pipeline.

Abengoa Water is committed to sustainable development in conjunction with the local communities in whose territory it

operates and in which it develops projects including the construction and operation of plant and other sustainable solutions.

We should highlight here the contribution made by local businesses to the value and supply chain of Abengoa Water. This, in

turn, promotes their expansion, consolidation and progress and often results in increased staff hiring rates, internationalization,

etc.

Of vital importance is the fact that Abengoa Water projects contribute to managing a scarce local resource in a sustainable way

and this helps to meet a basic need for water availability in these areas as well as encouraging development.

As an example of this we can cite the construction of the desalination plant in Nungua in Ghana (Africa) whose completion is

scheduled for summer of 2014. This project involves the investment of € 96 million which will result in the production of

60,000 m³/day of drinking water for the local population. The project will create about 400 direct and indirect jobs in the 24

months of construction work.

Abengoa Water channels a part of its social action resources through the Focus- Abengoa Foundation. Since its inception in

1982, the Foundation has been integrated into the essence of Abengoa and is the active instrument for managing the social

work of all companies in the Group of Companies, including Abengoa Water. The foundation is involved in integration and

social reintegration projects. This is also carried out in cooperation with activities related to the defence of our environmental

heritage and other activities related to technological and social development.

In 2013 Abengoa Water participated in Abengoa programs of staff time donation (tasks package) and solidarity holidays.

In this sense, we have collaborated in donating time with 19 hours completed and a total of six tasks. 672 volunteer hours on

solidarity holidays have also been donated. Almost 50 % of all hours devoted to distance volunteering within Abengoa

correspond to Abengoa Water, the company that has fewer employees when compared to the rest of the companies within

the Group.

4.1.4 Community


As for solidarity holidays, members of Abengoa Water travelled to Brazil in the summer of 2013, where they worked in a girls

orphanage in Rio de Janeiro. By all accounts, it was a very positive and rewarding experience for the volunteers, not only for the

opportunity to work on tasks within the orphanage and to spend time playing with the girls, but also to learn about another

culture and the living conditions of other people.

Also of interest is company membership and implication in numerous associations, offices, institutions and agents linked to the

community in the different countries where it operates as well as at international level. The following can be cited:

- International Desalination Association

(IDA)

- Colorado River Water Users Association

- Texas Water Recycling Association

- National Association of Clean Water

Agencies (NACWA)

- National Association of Water Companies

(NAWC)

- International Water Association (IWA)

- European Innovation Partnership on Water

(EIP)

- Cluster Eureka Acqueau (Acqueau)

- Water Supply and Sanitation Technology

Platform (WssTP)

- Spanish Technological Platform of

Environmental Technologies (Planeta)

- Spanish Technological Water Platform

(PTEA)

- Technological Association for Water

Treatment (ATTA)

- Spanish Association of Water Supply and

Wastewater (AEAS)

- Spanish Association for Desalination and

Reuse (AEDyR)

- Water Reuse Association (WRA)

- Texas Water Conservation (TWCA)

- Texas Desalination Association (TDA)

- San Antonio Hispanic Chamber of

Commerce

- American Water Intelligence

- Centa (Sevilla)

- Official Spanish Trade Chamber in China,

(office in Pekin)

- European Chamber of Commerce

- Water working group at the European

Chamber of Commerce

- China Desalination Association (CDA)

- Seawater and Brackish water Desalination

Branch, the Membrane Industry Association

of China (MIAC)

Members of Abengoa Water in the orphanage of the Sisters of Good

Counsel, Rio de Janeiro (2013)


New challenges

One of our principal challenges, therefore, is the development of lines of social and/or environmental support aligned with our

mission, vision and values, so we consider actions such as:

- Definition of the process used to carry out surveys in the communities where the company operates.

- Getting to know staff proposals on CSR in the many communities the company operates.

- Development of a social aid program under the corporate volunteer program of Abengoa.

• Improvement of environmental management

Abengoa Water maintains a strong commitment to the improvement of its environmental performance. This is reflected in the

management policy and materialized in the GIS system, which is aimed at improving the environmental impact of company

activities.

The integrated management system (according to international standard ISO 14001:04) allows the company to define the

impact of its activities, to reduce risk and create opportunities through the use of technologies to prevent, mitigate or remedy

such impact.

Abengoa Water seeks the use of natural resources in a rational manner and promotes environmental sustainability of

products, services and processes by conducting a pre- start-up investment and environmental analysis study.

Under the SIG proposed improvements, Abengoa Water conducts internal audits and sets objectives with executives in

environmental and sustainability matters and coordinates management in all workplaces, projects, plants and activities.

Abengoa Water is aware of the need and importance that all members of the organization know the impact their activity has

on the environment, both in normal operation and potential abnormal situations. Therefore all training in environmental

management is integrated into the overall process of formation within the company. This is through periodic training which

also involves a systematic evaluation of effectiveness. In 2013 we planned environment training for the staff, which will be

undertaken in 2014.

In addition, and as previously mentioned, since 2012 Abengoa Water has employed and maintains a set of indicators related to

sustainability including environmental aspects. This is known as Environmental Sustainability Indicators System (ISA), which is

being incorporated into the GIS to improve the management of the business.

The objective of this system is to obtain reliable data on relevant quantitative and qualitative indicators in sustainability; this for

correct management and also for communication in a transparent manner to the stakeholders in the company.

The indicator system (ISA) provides environmental groups information about parameters such as water, energy, odour, noise,

effluent, soil and aquifers, emissions, raw materials, products and services, waste, transport and biodiversity.

Abengoa Water periodically updates its environmental policy on the corporate website, establishing and/or maintaining goals

and plans to improve information about environmental aspects such as emissions, water consumption and energy efficiency,

among others.

4.2 Commitment to the environment, climate change and biodiversity


• Fight against climate change and GHG emissions

The fight against climate change and its relation to water scarcity is one of the fundamental pillars on which the company

commitment to sustainability rests. In this context, this positioning reflects its policy of the integrated management system.

Climate change is understood in Abengoa Water from two points of view: on one hand, in relation to managing the impacts of

this phenomenon by the company, and the other hand, as enhancement of the Abengoa Water’s commitment in finding

solutions to help solve the problem of global warming.

Abengoa Water applies an internal standard provided by the Abengoa Group that allows analysis and definition of GHG

emissions from their activities and also a mechanism for monitoring both direct and indirect emissions, including those of

suppliers and subcontractors. For Abengoa Water GHG emissions are an integral part of the mix of variables and criteria that

are measured during the promotion or initiation of activities, projects and feasibility studies.

The purpose of this inventory is to have an understanding of the generation of GHG emissions that cause climate change and

also to assess the company’s performance vs competition, identify improvement opportunities, reduce risks, assess the

environmental performance of suppliers and to tag products and services of the company through the amount of GHG

emissions per unit of product or service, expressed in CO2 equivalent. In other words, definition of the carbon footprint of com-

pany activities.

Abengoa Water’s carbon footprint was 3.02 kg CO2/m3 of desalinated water in 2013, lower than that obtained in 2012 (3.33

Kg CO2/m3), thus following a progressive reduction trend since 2011, a year in which it stood at 3.37 Kg CO2/m

3.

This indicator is measured according to the parameters and requirements of internationally recognized GHG Protocol with the

systematic inventory being verified by an independent third party (AENOR) according to ISO 14064 international standard.

New challenges

- Extension of carbon footprint calculations to other products/services, as they are developed.

- Calculation of global footprint, based on Abengoa’s own procedures and guidelines.

• Biodiversity improvement and preservation

Abengoa Water is aware that the loss of biological diversity is one of the most important issues facing the world today and that

companies such as Abengoa are important players in this process.

Abengoa Water manages its impact on natural areas and on the biological diversity of those places in which it operates right

from the initial stages of business development and design management to the end of the useful life of plants and facilities.

This management process is conducted throughout the process of initial construction and during later operational and

production processes.

In this sense the concept is reflected in the integrated management system policy and based on the stated commitment to

sustainable development and community care, which implicitly includes the care and conservation of biodiversity including

natural areas, ecosystems, flora wildlife inherent natural values, etc..

Abengoa Water considers and monitors the impact of its activity on biodiversity in its internal procedure for the identification

and evaluation of environmental aspects and, in the project phase, pursuing a relentless pursuit of compliance with this

procedure especially with regard to the potential impact on sensitive areas and always taking into account the sectorial

regulations applicable in each case and in the countries where it operates.


As a consequence of regulatory approval processes for facilities, it has been necessary to meet, during construction and/or

operation, with environmental factors related to biodiversity, such as the development of landscape integration plans and/or

implementation of reforestation as well as actions focused on the protection of plant and animal species, etc. Also in this sense,

it is considered vital to develop plans for monitoring desalination brine discharge conditions, a process that Abengoa Water

designs and carries out with the rigor and all necessary follow-up actions whenever it has been required in each case and

situation under legal imperative.

New challenges

- Preparation of the biodiversity map .

- Study and planning of proposed CSR actions related to biodiversity.

These challenges were proposed in the 2012 CSR report. During this year, no progress has been made so, in 2014, they still

remain in the analysis, methodology and planning phase.

• Value of major environmental indicators

This section shows the magnitudes of the main environmental indicators of Abengoa Water, which have been calculated based

on specific protocols for measurement and calculation for each indicator. Due to the nature of the activities of Abengoa Water,

the most important concepts associated with various environmental aspects are presented. It is not the intention to make an

exhaustive list of all of them but to aggregate and consolidate the available data so as to provide as accurate an impression of

the organization’s environmental impact as possible.

Raw materials consumption (Tonnes) 2013 2012

Total 12,849.47 12,324.29

Construction activities (Tonnes) 2013 2012

Oil/fats/waxes 0.09 0.03

Prestacion (Tonnes) 2013 2012


Other waste materials 0.001 0.01

Paper 1.615 3.60

Non-renewable chemical product 0.00269 0.01

Raw Materials


Productive processes (Tonnes) 2013 2012


Other waste materials 0.01 0.02

Minerals 1.239 1.21

Non-renewable chemical product 11,348.00 11,147.30

Renewable chemical product 1,496.00 1,169.50

Covering 0.1398 0.14

R&D (Tonnes) 2013 2012

Non-ferrous metal No data available No data available

Other waste materials No data available No data available

Plastics No data available No data available

Direct consumption of energy (Terajoules) 2013 2012

Natural Gas 0.183 0.14

Oil 37.74 1.73

Indirect consumption of energy (kW/hour) 2013 2012

Electric Energy 249,850,307 226,175,371

Volume of recycled and reused water (m3) 2013 2012

Use/process 699.84 717.12

Energy

Total water collection by sources (m3) 2013 2012

Network water 2,215.93 2,150.70

Sea water 168,103,473.00 151,085,993.90

Water


Expenditure and environmental investments (€) 2013 2012

Other costs No Data 171.24

Environmental training 4,831.00 1,590.00

External certification for management systems 13,926.00 21,301.00

External services No Data 14,130.70

Staff/activities 90,000.00 90,000.00

Waste disposal/treatment (*) 4,570.26 No Data

Total weight of managed waste (Tonnes ) 2013 2012

Not dangerous 20.061 11.76

Harmful No Data 1.06

Hazardous for environment (*) 4.74 1.22

Toxic No Data 0.00

Water discharge (m3) 2013 2012

Descharge into surface water bodies (brine) 90,995,538 72,726,819.71

Delivery to third parties for reuse (water product) 76,065,404 70,649,432.00

2013 2012

Verified total emissions 243,734.24 235,192.16

Emissions, discharges and waste

Biodiversity and environmental management

Total emissions of greenhouse gases (Tonnes CO2)

(*) Data related to amounts of harmful and hazardous managed together.

(*) Data related to other costs and external services costs.


• Environmental Initiatives

Throughout 2013 several initiatives designed to make our business and development model more sustainable in environmental

matters have been developed.

In order to reduce GHG emissions in all activities of the company as well as saving emissions from travel to work or for remote

meetings, the company has promoted videoconferencing and telecommittees. As part of ongoing professional development

the company also promotes online learning.

In this regard, and in addition to measures quoted above including the mobility plans and technologies that promote sustaina-

bility in Campus Palmas Altas (Seville), sustainability in the R&D+i at Dos Hermanas (Seville) can also be highlighted. This facility

is is equipped with a solar energy collection system and DHW heating system, the use of thermal inertia of the soil, rainwater

collection for irrigation, use of recycled and reclaimed materials, and a control system of facilities for energy saving, emissions

inventory and CO2 compensation through energy audit performance plans.

During 2013, Abengoa Water identified and evaluated several objectives within their environmental management program.

These included:

• Increase environmental training for staff (in all centres and plant).

• Reducing emissions from electricity consumption per m3 of water produced. In the year 2012 to 2013 energy demand has

been reduced by 10 %.

• Reduction of energy consumption and improvement of efficiency in plants.

• Reduction of water consumption by use of recycled rain in the R&D+i centre of Dos Hermanas.


R&D+i plays a key role in the water sector, both from the standpoint of improving the efficiency of current production

processes and in the development of new technologies for water treatment .

Abengoa Water's vision is based on a strong and determined commitment to innovation, research and development in areas

related to water such as desalination, purification, treatment and reuse.

Abengoa Water’s management policy defines its direction in the matter and considers innovation as a key tool for sustainable

business development and differentiation as well as improvement and increased competitiveness.

In order to achieve this, Abengoa Water works with top professionals in developing new technologies through its R&D+i.

Today in Abengoa Water there is a strong portfolio of projects and initiatives R&D+i, many of which may become future

businesses when the technologies have been fully developed and their feasibility tested on both an industrial and commercial

scale.

We have a strategic plan for R&D+i that defines the overall technology strategy and vision of the organization and under

which we define and develop a series of programs for R&D+i. Using the latest knowledge and technological advances in the

industry, it is from this that many innovative projects are developed. Our R&D+I plan is also the main driver for the present

and future development of the company as we continue to focus on developing technology to support and propel the main

part of our business plan. This, in turn, provides added value to our activities and strengthens our business development

objectives.

Aim

Generation of knowledge and the development of in-house technology based on four research programs that focus on

desalination, treatment and water reuse, membranes and sustainable solutions.

Human Capital and Means

These achievements are only made possible through the efforts of a team of about 40 researchers including specialists in

membranes, desalination and water treatment.

We have an R&D+i centre of about 3,000 m2 located in Seville (Dos Hermanas) with leading research facilities, laboratories

and a centralized telematic control. There is also a monitoring centre for operational plant.

Investment in R&D+i

Last year the company’s total investment in R&D+i stood at € 4.7 M and covered a combination of 34 projects, thus

maintaining overall investment of 2012 in 25 ongoing projects. This highlights the company’s clear commitment towards

innovation in its activity.

05 | Technological innovation

as a competitive strategy


Patents

The relevance and importance for Abengoa Water of its R&D+i activity makes it necessary to ensure the protection of the

intellectual rights of these developments and ongoing research and we are actively seeking legal recognition to ensure an

adequate level of protection of intellectual rights.

The organization already has rights on several important developments applied for. At the end of 2013 this includes a total of

five patents applied for and two patents granted.

Prioritary Patents

2010

1

2011

14

7

01

7

14

34

0

1414

1

5

2012 2013

0

1414

1

6

Patent applications Accumulated patent applications Patent granted Accumulated patent granted

Patents

2010

1

2011

14

7

01

7

14

34

1416

1

5

2012 2013

6

1420

1

6

2

Patent applications Accumulated patent applications Patent granted Accumulated patent granted

Evolution of patent status in Abengoa Water


The successful completion of the project TECO by Abengoa Water, as project Leader and Coordinator, is an example of its

leadership in this field. With a budget of € 18 M (49.34 % funded by the CDTI Ingenio 2010 Programme), the main objective

was the generation of knowledge and the development of technologies and processes for the complete water cycle. This

assists in ensuring the availability and quality of water supply and sustainability and provides solutions and an adequate

response to the problems of water scarcity, increasing untreated water discharge and waste disposal, and its relationship to

the worsening climate which is directly related to the planet’s rising population.

New challenges

- To diagnose the feasibility for the UNE 166002 implementation and certification.


This document is presented as the second annual sustainability report of Abengoa Water, the most recent published in 2013

concerning activities in 2012. The information the report contains concerns the company's principal business activities during

2013 and relates in particular to social, economic and environmental activities that are promoted under the internal rules of

the organization. This includes the principles of both the Global Agreement, which governs the activities of all Abengoa

Group companies, as well as the laws of the countries in which Abengoa Water operates.

A review of its report’s application, implementation and development is a priority for the company and therefore internal and

external audits are carried out to verify compliance and adequacy as to processes, standards and operating procedures; this to

ensure transparency.

We have defined a reporting system that aims to efficiently obtain reliable consolidated data about the organization,

especially that concerning relevant CSR indicators, in order to communicate it to our stakeholders. To ensure reliability of the

information obtained, data is required to be systematically consistent, must be traceable and reproducible, accurate and

thorough in identifying and considering data sources. All of this is subject to our internal control system that ensures the

prevention, detection and minimization of errors.

This report has been prepared taking into account the principles governing the AA1000 Assurance Standard (2008), which

include inclusivity, materiality (see definition below) and responsiveness; as well as the four principles regulated by GRI:

materiality, implication of stakeholders, sustainability context and completeness. Both the principles of the AA1000 and the

GRI are interrelated and are based on the principle of materiality.

This Sustainability Report will be reviewed externally by an independent entity to verify the application of the AA1000

Assurance Standard (2008) and the Global Reporting Initiative Guide version 3.1 (GRI G3.1) according to level A+, and

generally taking into account some of the considerations of the recent GRI guide 4. The review will apply the principles of

AA1000 (2008) Accountability Standard, with the degree of expected assurance (high), including the verification reports at

the end of this document as Annex B, which will detail the scope of the work performed as well as the conclusions.

The report will eventually be entirely revised by Abengoa Water management and Global Reporting Initiative, who will qualify

the report according to those standard levels. The certificate obtained shall also be included in Annex B of this report.

• Materiality (GRI) and Relevance (AA1000)

Materiality refers to the relevance of information within the context of sustainability for the company. Information is

considered material whose omission or distortion can decisively influence the stakeholders of the reporting organization.

Sustainability reports are not only focused on one particular interest group, but on several of them, and therefore contain very

heterogeneous information. Abengoa Water has taken into account the analysis of materiality in the preparation of this report

06 | Preparation and review

of the report

6.1 Process and principles of preparation and review


in order to reflect the integrated activities of the company in economic, social and environmental issues and in a way that

meets the expectations of the audience and contributes to building trust among stakeholders.

During 2013 a materiality analysis has been conducted with a selection of relevant CSR issues and procedures based on two

approaches of analysis that overlap to arrive at the final result. In this process external factors, being related to the

expectations of Abengoa Water’s stakeholders and the importance they attach to the different cases, are particularly

important. Also important are the internal factors that determine the issues of importance for the business, the management

of the company and the achievement of the objectives in business strategy. Using both perspectives is essential for compliance

with the principle of inclusiveness defined by AA1000 AS (2008).

The relevant issues analysis was based on an internal procedure developed by Abengoa that defines the methodology for their

preparation and in which the initial selection of relevant issues of Abengoa Water is made from a study of transcendent

factors, the main ones being:

• International reporting standards, mainly GRI and AA1000 AS (2008).

• Analysis of best practices of leading companies in the fields of energy and environment.

• Socially responsible investors. Analysis of ratios such as the FTSE4Good and DJSI identifies relevant issues for

investors and shareholders.

• International initiatives like the Global Compact of the United Nations and the Caring for Climate.

• Analysis of the readers reaction to earlier reports; this received through the communication channels available for

the purpose and directed to the Business Group concerned.

• The Mass media.

• Consultants.

• Questions and recommendations raised by IPESD (Independent Panel of Experts on Sustainable Development).

• Interviews with stakeholders. We have taken into account the main subjects from 13 out of 22 interviews

conducted with stakeholders.

• Internal commissions on relevant matters from different business areas of the Abengoa Group of companies.

• Analysis of the results extracted from the CSR risk assessment conducted in 52 facilities of Abengoa.

• Historical topics covered in previous Abengoa Water reports.

• Relevant issues identified in previous Abengoa Water reports.

• Regular quarterly monitoring of CSR Master Plan of Abengoa Water.

The list of relevant issues identified was considered by a Commission composed of 13 members from different areas of

Abengoa Water and chaired by the members of the Committee on CSR & Sustainability.

After analyzing the materiality of the issues presented both of internal and external origin (from stakeholders), and taking into

account the nature and dimension of each aspect and input from the Committee to correlate the items to the reality of the

company, the Commission developed a list of 11 factors:

- Internships (attracting and retaining talent, diversity and equal opportunities, freedom of association and permanent

jobs). This includes consideration of work-life balance.

- Human Rights.

- Energy intensity of the desalination process. Energy efficiency of operations.

- Integration of renewable energy in desalination / purification process.

- R & D (improved efficiency, new business lines) differentiating technologies development that contribute to

competitiveness.

- Supply chain Management.

- Waste generated after desalination / purification management, brine and sludge recovery; ZLD.

- Water losses in transmission and distribution.

- Involvement of communities and local authorities in decisions affecting the plant location.

- Promotion of efficiency in water use by our clients. Municipal and Industrial Water reuse.


- Occupational Health along the whole value chain.

After the process of internal and external evaluation of these issues or factors, a matrix that ranks issues mainly as Focus (2

cases) and Report (2 cases), and is based on the existing procedure in this regard, is obtained.

Involvement of communities and local authorities in decisions a!ecting the plant location

Internships (attracting and retaining talent, diversity and

equal opportunities, freedom of association and permanent jobs)

FocusHuman Rights

Report

R&D (improved e"ciency, new business lines)

Inform in otherreports

Occupational Health along the whole value chain

Supply chain Management

Waste generated after desalination / puri#cation

management

Integration of renewable energy in desalination /

puri#cation process

Energy intensity of the desalination process. Energy

e"ciency of operations

Promotion of e"ciency inwater use by our clients

Water losses in transmission and distribution

0 % 25 % 50 % 75 % 100 %0 %

25 %

50 %

75 %

100 %

2013 Relevant Issues

Internal relevance

Exte

rnal

rel

evan

ce

As shown in the matrix, the relevant issues that influence the values of the organization are:

• Internships:

- Attracting and retaining talent.

- Diversity and equal opportunities.

- Freedom of association.

- Employment stability.

- Work-life balance.

• R & D; improved efficiency and new business lines, differentiating technologies development that contribute to

competitiveness.

• Human Rights.

• Involvement of communities and local authorities in decisions affecting the plant location.

All these relevant issues have been discussed in previous sections within this Report.


• Participation of stakeholders (GRI) and inclusiveness (AA1000)

These two principles require the reporting organization to identify its stakeholders, in order to take them into account when

designing the strategy and to detail how the organization has responded to their expectations and concerns.

Abengoa Water has adapted its approach to the analysis methodology of CSR matters followed by the Abengoa Group of

companies who, in the process of preparation and development of its CSR Master Plan, identified the main prescribers of key

stakeholders in order to check their expectations and perceptions. Consultation with stakeholders aims to promote the

importance of the identified challenges, the perceived performance of the company in each of the subjects and the state of

the art in those matters considered relevant.

Furthermore, and as already indicated in this report in section 3.2 .2, Abengoa Water has different communication channels

and mechanisms that are designed to maintain an open and ongoing dialogue with its stakeholders that lets us know their

needs and expectations.

• Sustainability (GRI)

Abengoa Water focuses all its activities on the development and application of water technologies to contribute to sustainable

development. This report evaluates the company’s performance related to consideration of its stakeholders as well as the

communities in which it operates, the environment, its contribution in reducing climate change and protecting biodiversity.

Abengoa Water places more emphasis is becoming more proactive in the communication and dissemination of the

importance of sustainability in its business development.

During 2013, activities such as training and information campaigns related to this have been carried out and have resulted in

the preparation of a dossier entitled “Water, Abengoa Water and Sustainable Development.” This dossier is of a

multifunctional nature and is directed to all our stakeholders. Other activities include online training in environmental matters

and procedures within the program and environmental objectives of GIS.

With this and other initiatives undertaken we aim to raise awareness among our stakeholders and within society at large

about the need to ensure that the establishment of a welfare state can only be achieved through sustainable economic

growth.

• Exhaustiviness (GRI)

Exhaustiveness refers to the adequate coverage of the indicators and material aspects, so that they reflect key social, econo-

mic and environmental impacts and allow stakeholders to assess the performance of the reporting organization during the

period covered by the report.

In this report we have tried to adequately reflect the implications, risks and challenges inherent in each line of business and

within the Abengoa Water management structure, so that it is accessible to a wide and diverse public. The document gives a

higher priority to some aspects than others; this according to the materiality matrix on the analysis of relevant issues, and

these issues have been illustrated with case studies and concrete examples.

We have developed a common structure for all chapters and sections in order to obtain uniformity in the presentation and to

facilitate comprehension of the text and the search for information.

Coverage or indicators, understood as the set of performance aspects, is inclusive of all places of work, companies and plant

under the management and responsibility of Abengoa Water (See Annex A, Scope of Consolidation).

42 / Responsabilidad Social Corporativa / Informe Anual 2013 ABENGOA WATER

• Responsiveness (AA1000)

The CSR Master Plan defines the framework and guidelines to be followed in terms of sustainability through a series of

actions that make up the expectations of the stakeholders in the strategy of the organization. Since 2012, Abengoa Water

has reinforced its CSR reporting system to include and maintain improvements in 2013 concerning the Integrated

Management System (IMS) and Indicators of Sustainability (ISA) that bring together all relevant information on sustainability,

thus facilitating measurement and control of the performance of the company.

In preparing this report, we have endeavoured to convey the information following the quality standards issued by GRI.

• Balance

The report reflects not only the strengths but also the areas for improvement (challenges) and permits a reasonable

assessment of the performance of the company thus facilitating the process of identifying relevant compliance issues.

• Comparability

The report must not only provide an analysis of developments and changes but must also permit a comparison with the

previous year and be able to analyze the evolution and history in the field of the business indicators and alterations in

calculation methods, etc.

• Accuracy

The report has been prepared with the aim of serving as a tool for assessing the performance of the organization.

• Reliability

A third party will verify the information in the report. The collected data is supported by relevant documentation and, in line

with its commitment to transparency, subject to the internal controls of the company. This reinforces what has been already

commented on concerning the reporting system of the company, the aim of which is to efficiently obtain reliable consolidated

data about the organization and apply internal controls that help prevent, detect and correct significant errors in the data

reported.

In preparing this report and the information it contains, we have applied the principles of quality issued by GRI.

6.2 Principles on the quality of information disclosed

Responsabilidad Social Corporativa / Informe Anual 2013 / 43ABENGOA WATER

In preparing this report we have taken into account the developments and approaches discussed in the 2013 CSR report, as

well as the results and issues covered in follow-up meetings of the Committee of CSR and Sustainability, and/or periodic

monitoring of CSR Master Plan. However, the structure, thematic content, communication style, and formats have been kept

consistent with the previous report of 2012.

However, changes to consider include:

- The new headquarters location (address) in Madrid.

- The results of the analysis of the relevant issues process, which is more oriented towards the reality of the organization.

- Creation and existence of its own website as a means to communicate achievements on CSR.

6.3 Significant changes in the report

For contact and further information on this report:

Rafael Llorente Olazábal

Person in charge of SIG and Sustainability

Campus Palmas Altas

C/ Energía Solar nº 1, Palmas Altas 41014 Sevilla

Phone: +34954937035 (37035) Cell: +34608883251 (57552) Fax: +34955413373

www.abengoawater.com

6.4 Contact


07 | GRI Index

Strategy and analysis Chapter Page

1.1 1Statement by the head for decision taking on the relevance of CSR for

the organization and its strategy.

2.3 2 / annex AOperational structure of the organization, including main divisions,

operating companies, subsidiaries and joint ventures.

1.2 3.2.1 / 3.2.3.Description of the main opportunities, risks and impacts

Organization profile Chapter Page

2.1 2Name of the organization

2.1 2Main brands, products and/or services

2.4 2Location of the main headquarters of the entity

2.5 2Number of countries where the organization operates, and names of

countries with either major operations or that are specifically relevant

to the sustainability issues covered in the report.

2.7 2Served markets: including geographical breakdown, the sectors it

supplies, the type of clients/beneficiaries.

2.6 2Nature of the property and legal form.

2.9 6.3Significant changes during the period covered by the report in size,

structure and property of the organization.

2.8 2/3Dimensions of the reporting organization

2.10 3 / annex CAwards received during the period covered by the report.


3.8 6 / annex A

Basis for reporting on joint ventures (joint ventures), subsidiaries,

leased facilities, outsourced operations and other entities that can

significantly affect comparability from period to period and/or

between organizations

3.9 6Data measurement techniques and the bases of calculations, including

assumptions and techniques underlying estimations applied to the

compilation and other information in report.

3.10 6Description of the effect of any changes in information provided in

earlier reports, and the reasons that caused them.

3.11 6Significant changes from previous periods in the scope, boundary, or

measurement methods applied in the report.

3.12 7Table identifying the location of the Basic Contents in memory.

3.13 6.1Policy and current practice with regard to seeking external assurance

for the report.

Parameters of the report Chapter Page

3.1 6.1Period covered by the information contained

3.2 6.3Date of the most recent previous report

3.3 6Report presentation cycle (annual, biennial, etc..).

3.4 CoverPoint of contact for matters regarding report or its content.

3.5 6Process of definition of the report content

3.6 annex ACovering of the report

3.7 6Limitations of the scope of the report


Goverance, commitments and participation of interest groups Chapter Page

4.1 2/3Governance structure of the organization, including committees under

the highest governance body responsible for specific tasks, such as

setting strategy or organizational supervision.

4.2 2Indicate whether the Chair of the highest governance body is also an

executive position and, if so, their function within the organization's

management and the reasons for it).

4.3 2Number of members of the highest governance body that are

independent or non-executive.

4.4 3.2.1 / 3.2.2.Mechanisms for stakeholders to provide recommendations or

indications to the highest governance body.

4.5Abengoa’s Corporate

Governance Report

Linkage between compensation for members of the highest

governance body, senior managers, and executives (including

departure arrangements) and the organization's performance

(including social and environmental performance).

4.6

Transparency and

rigor in management

by Abengoa

Processes in place to avoid conflicts of interest in the highest

governing body

4.7Abengoa’s corporate

governance report

Process for determining the qualifications and expertise of the

members of the highest governance body for guiding the

organization's strategy on social aspects.

4.8 2/3

Statement of the mission and values internally developed, codes of

conduct and principles relevant to economic, environmental and social

performance and the status of its implementation.

4.10

Transparency and

rigor in management

by Abengoa

Transparency and efficiency in the management of Abengoa

Procedures for evaluating the performance of the highest governance

body, particularly with respect to economic, environmental and social

performance.

4.11

Transparency and

rigor in management

by Abengoa

Description of how the organization has adopted a precautionary

approach or principle.

4.12 3 / 4

Principles or social, environmental and economic programs developed

externally, as well as other initiatives to which the organization

subscribes or endorsed by it.

4.9

Transparency and

rigor in management

by Abengoa

Procedures of the highest governance body for overseeing the

identification and management on the part of the organization, of

economic, environmental and social performance, including relevant

risks and opportunities, and adherence or compliance with

internationally agreed standards, codes of conduct and principles


Chapter Page Observations

Economic performance

Profile Description

Economic performance

EC1 2

Direct economic value generated and distributed, including revenues,

operating costs, employee compensations, donations and other

community investments, retained earnings, and payments to capital

providers and governments.

EC2 2 / 4Financial consequences and other risks and opportunities for the

activities of the organization due to climate change.

EC3 4Compliance with obligations of the company with social programs

EC4 4Significant financial aids received from governments.

Profiles Description approach direction Chapter Page

DMA EC Management approach - EC 2 / 4

DMA LA Management approach - LA 2 / 3 / 4.1.1.

DMA HR Management approach - HR 3 / 4

DMA SO Management approach - SO 3 / 4

DMA PR Management approach - PR 3 / 4

DMA EN Management approach - EN 3 / 4.2.

4.14 3.2.2. / 4.1.Relationship with stakeholders included by the organization.

4.13 4.1.4Main associations to which it belongs (such as industry associations)

and/or national or international bodies to which the organization

supports as members at the organizational level.

4.15 3.2.2. / 6Basis for identification and selection of stakeholders with whom the

organization engages.

4.16 3.2.2. / 6Approaches adopted to the inclusion of stakeholders, including

frequency of engagement by type and category of stakeholder’s

group.

4.17

6/ Abengoa’s relevant

issues procedure

analysis

Main concerns and areas of interest that have arisen through the

participation of stakeholders and how the organization has responded

to them in the preparation of the report.


EC7 4Procedures for local hiring and proportion of senior management hired

from the local communities at locations of significant operation.


Market presence

EC5 4Range of the relations between initial standard wages and local wages

where significant operation is being undertaken.

Economic impact on the market

EC8 2 / 4Investment in infrastructures mainly for public benefit

EC6 3 / 4Policies, practices and proportion of expenditure corresponding to

local suppliers at locations of significant operations.


Social performance

Profile Description

Work practice and ethics in the workplace

Employment

LA1 4Breakdown of employees by type of employment contract and region

by gender

Information too

exhaustive for the aim

of this report

LA2 2 / 4Total number of employees and average employee rotation broken

down by age group, gender and region.

Information too


of this report

LA3 4Benefits provided to full-time employees that are not provided to

temporary or part-time employees, broken down by major operations.

LA15 4Levels of Return to work and retention after being off due to

parenthood, broken down by gender.

LA4 4Percentage of workets covered by a collective agreement.

LA5 4Minimum Period (s) of notice (s) regarding operational changes,

including whether it is specified in collective agreements.

Relationship companies/workers

LA6 4.1.1

Percentage of total workforce represented in formal joint health and

safety committees, established to help in monitoring and advise on

health and safety programs at work.

Health and safety at work


LA7 4.1.1Rates of absenteeism, occupational diseases, lost days, and number of

work related fatalities by region.

LA9 4.1.1Matters of health and safety covered in formal agreements with trade

unions.

LA8 3 / 4 4.1.1

Education, training, counseling, prevention and risk-control programs

in place to assist workforce members, their families or community

members regarding serious diseases.

LA12 4Percentage of employees undergoing regular performance and

professional development evaluations itemized by gender.

LA11 3 / 4 4.1.1

Programs for management of skills and on-going training to promote

the employability of workers supporting them in their management of

the end of their professional careers.

Health and safety at work

LA10 4.1.1Average hours of training per year per employee, by employee

category.

Training

LA14 4.1.1Relation between basic salary of men and women by employee

category.

LA13 2 / 4Composition of the government corporate organs and staff, itemized

by gender, age group, minorities and other diversity indicators

This indicator is reported in

Abengoa Annual Report

HR1 3 / 4

Percentage and number of relevant investment agreements including

human rights’ clauses or that have been object of analysis regarding

human rights.

HR24

4.1.3.

Percentage of the main distributors and contractors that have been

object of analysis regarding human rights and measures taken as a

consequence

HR34.1.1.Total hours of employee training on policies and procedures

concerning relevant aspects of human rights for operations, including

the percentage of employees trained.

Diversity and equal opportunities

Human rights performance

Work practice and ethics in the workplace




No discrimination

HR4 4Total number of discrimination incidents and measures taken.

Freedom of association

HR5 4.1.4Name of the organization

Child exploitation

HR6 4Activities identified carrying potential risk of child exploitation risk and

measures adopted for their elimination.

Forced works

HR7 3 / 4Operations identified as relevant risk to be origin of episodes of forced

works and measures adopted for their elimination.

HR8 3 / 4Training of workers on policies and practices concerning human rights

relevant to the development of activities.

Rights of native people

HR9 4Total number of incidents related to violation of native people rights

and measures adopted.

HR11 4Training on human rights of the safety staff.

HR10 4Percentage and total number of operations that have been object of

revisions and evaluations of impacts in terms of human rights.

SO1 4.1.4

Nature, scope and efficiency of programs and practices to evaluate

and manage the impacts of operations in communities, including

arrival, operation and exit of the company.

SO9 4 / 4.1.4Operations with real or possible relevant negative impacts in local

communities.

Society´s performance

Community


Corruption

SO2 3 / 4Position in public policies and participation in the development of the

same and “lobbying” activities.

Rule compliance

SO8 3 / 4Rule compliance

SO3 3 / 4Total Value of financial and in kind contributions to political parties or

related institutions, by countries.

SO4 3 / 4Actions caused by monopoly practices and against free competition,

and its results.

SO5 3.3.2Lobbyng

SO6 3.3.2Financing

SO7 3.3.2Legal actions

SO10 4 / 4.1.4Prevention and mitigation measures implemented in operations with

real or possible relevant negative impacts in local communities.

PR14

4.1.2

Stages of the life cycle of products and services that are assessed for

the purposes of improvement, the impact thereof on the health and

safety of customers, and percentage of significant products and

services subject to such evaluation procedures.

PR2 4

Incidents derived from non-compliance with regulations and voluntary

codes related to the impact of products and services on health and

safety during their life cycle, distributed according to the type of result

of such incidents.

Responsability performance of the product

Health and Safety of the client

PR3* 4

Types of information on products and services required by existing

procedures and regulations, and percentage of significant products

and services subject to such information requirements.

Services and product labelling



PR4 4

Breaches of regulations and voluntary codes concerning information

and labeling of products and services distributed according to the type

of result of such incidents.

PR54

4.1.2

Practices related to client satisfaction, including the results of the client

satisfaction studies.

Services and product labelling

PR6* 4

Programs of enforcement or adherence to standards and voluntary

codes mentioned in marketing communications, including advertising,

promotion and sponsorship.

PR7 4Marketing or communication incidents

Marketing Communications


PR84

4.1.2

Reclamations related to respect to privacy and clients data leaks from

clients

Client privacy

PR9 4

Significant fines for noncompliance with laws and regulations concer-

ning the provision and use of products and services of the

organization.

Rule compliance

EN1 4.2Materials used by weight or volume

Non-substantial data:

information too


of this report

EN2 4.2Percentage of materials used that are valued materials

Environmental performance

Materials

EN3 4.2Direct consumption of energy itemized by primary sources.Non-substantial data:

information too


of this report

Energy

EN4 4.2Consumo indirecto de energía desglosado por fuentes primarias.

EN5 4.2Energy savings due to efficiency improvements and preservation.


EN6 4.2

Initiatives to provide efficient products and services in the consumption

of energy or based in renewable energies, and reductions in energy

requirements as a result of these initiatives.

Non-substantial data:

information too


of this report

Energía

EN7 4.2

Initiatives to provide efficient products and services in the consumption

of energy or based in renewable energies, and reductions in energy

requirements as a result of these initiatives.

Capítulo Página Obervaciones

EN8 4.2Total water collection by sources

EN10 4.2Percentage and total volume of recycled and reused water.

EN9 4.2Water sources that have been relevantly affected by water collection.

Water

EN11 4.2

Description of land adjacent to or located within protected areas or

areas of high biodiversity. Indicate the location and size of land

owned, leased or managed with high biodiversity value in areas

outside protected areas.

EN12 4.2

Description of significant impacts on biodiversity in protected areas or

in non-protected areas of high biodiversity, arising from activities,

products and services in protected areas and areas of high biodiversity

value outside protected areas.

EN13 4.2Restored or protected habitats.

EN14 4.2Strategies and actions implemented and plannified for biodiversity

impact management.

EN14 4.2

Number of species, by level of extinction risk, included in the IUCN Red

List and on national lists with habitats in areas affected by operations,

by level of extinction risk.

Biodiversity


EN16 4.2Total emissions, direct or indirect, of greenhouse gases, in weight.

EN17 4.2Other indirect emissions of greenhouse gases and reductions achieved.

EN18 4.2Initiatives for the reduction of emissions of greenhouse gases and

reductions achieved.

EN19 4.2Emissions of dangerous substances from the ozone layer, in weight.

EN20 4.2Nox, Sox and other relevant emissions to air by type and weight.

EN21 4.2Total residual water discharge by quality and destination.

EN22 4.2Total weight of managed residues, according to treatment type and

method.

EN23 4.2Total number and volume of most relevant accidental runoffs.

EN24 4.2

Weight of residues transported, imported, exported, or treated

deemed hazardous under the Basel Convention Annex I, II, III, VIII and

percentage of transported waste shipped internationally.

EN25 4.2

Identification, size, protected status and biodiversity value of water

bodies and related habitats significantly affected by discharges of

water and runoff from the reporting organization.

Emissions, discharges and residues.


EN26 4.2Initiatives to mitigate environmental impact of products and services

and degree of reduction of that impact.

EN27 4.2Percentage of sold products and its packing materials that are

recovered at the end of its useful life, by categories of products.

Services and products

EN28 4.2Cost of significant fines and number of non-monetary sanctions for

noncompliance with environmental regulations.

Rule compliance


EN29 4.2

Significant environmental impacts of transporting products and other

goods and materials used for the organization's operations, and

transporting members of staff.

Transport

EN30 4.2Itemization by types of the total expenditure and environmental investments.

Biodiversity



Annexes

A.Consolidation perimeter


B.External verification reports and GRI certificates





C.Global Water Award 2013









Engineering

Abengoa Water Corporate Social Responsability - Annual Report