6.1. Neighboring communities to power plants

6.1. NEIGHBORING COMMUNITIES TO OUR POWER GENERATION PLANTS

((GRI 413-1, 103-1, 103-2, 103-3) T : Progress and social welfare

In the Energy Business Unit we promote responsible social management in the communities around our power generation plants. We also ensure the efficient use of natural resources, minimizing any impact that could be generated on the environment, while promoting the quality of life of the communities. The social management we carry out is a strategy for the sustainability of the company, especially as it is a practice that creates shared social value. We consider it to be a primary factor in ensuring business continuity, because many of our power plants are located in rural or semi-rural areas, with populations whose basic needs are not covered, in most cases. That is why, it is important for us to have a good relationship with the communities in our environment and to create bonds with the different social actors in our value chain. For this reason, it is essential to keep the social license in the areas where we operate. We have keep relations and communication between the community and the company. In addition, we have an Integrated Management System Policy, based on ISO 9001, ISO140001 and OHSAS1800,1 standards, which consider the effects of plant operations on the social environment. Two of our operations in Guatemala are certified under this three standards and three of our wind power plants have two standards (ISO14001 and 45001); while the rest of our operations are standardized. We are committed to creating bilateral agreements related to the community and the company, so that Community investments have a positive long-term impact. As good neighbors, social investment goes beyond philanthropy or charity, because they are practical and strategic. We make commitments to the development and social change of nearby communities, as we help them improve their quality of life and create relationships that remain over time. That is why we created a document in which the guidelines for the social management of the projects and operations of the Energy Business Unit have been established, which applies to all the countries in which we operate. The manual has seven action axes, applied to all the social efforts we carry out:

Governance the system of CMI Energy management by which the commitment with ethics and the law fulfillment is shown, of the Code of Conduct and Ethics, and the policies implemented by CMI. Internal Audience all the actions appointed to the CMI Energy human talent, including Employees and their family groups, the stockholders, officials, and directors, including the Human Resources Policies. Environment the CMI Energy permanent commitment, established in their Management Policy with the sustainable use of natural resources and the pollution prevention. Suppliers it means the CMI Energy compromise to stimulate, value and evaluate que responsible behavior of their activity through the Contractors, Consultans or suppliers according to the Hiring Policy. Marketing the CMI Energy commitment to build, develop and mantain trustable relationships with its clients. Communities the CMI Energy compromise to encourage and support the communities’ development in economic, social, and environmental matters. It involves the communities closer to the influence zone of its plants. Public policy the CMI Energy commitment to align their interest with the public interest, which influences and contributes with the sustainable development of the country where they operate..

((GRI 413-1, 103-1, 103-2, 103-3) Through donation agreements with several municipalities of the populations close to our operations and with their own activities, we serve their needs directly and indirectly as we allocate economic resources for this item. To achieve this goal, at the beginning of each year, we hold community meetings or assemblies to prioritize the investments that will be implemented. The company and the community build the plans together; and sometimes, with a third member, the State, with a share of the investment. All the agreements have been monitored and their closure at the end of the year is performed in a public event, so that the actions implemented are of general knowledge. In each operation, we have a work team with high values of responsibility and diligence to properly manage the community relationship. In this way, we promote sustainable development in its three dimensions: Economic, environmental and social equity. For this reason, we design and implement social programs based on the different stages of the person’s development, to contribute to the development of children, adolescents, youth and the community leadership. On the other hand, we make investments aimed at improving infrastructure and services for health, education and community development. This chapter describes the social management of each of the countries in which we operate, which in turn fall into four major issues: • Investment in infrastructure • Employment generation • Social programs • Constant relation We also generate employment options that allow families to earn better economic incomes. When we have vacancies available, we post them on social media, so that the communities are aware and can participate in the process if they meet the requirements of the desired profile, thus providing direct employment in the communities neighboring our plants. We also support the generation of productive ideas that allow communities better self-management and economic diversification, combined with an approach to the booming centers in the region. Our social management is assessed through community interactions, attention to complaints and measuring progress while developing investment projects and the execution of the corresponding budgets. Likewise, our evaluation and monitoring system for filing requests, and complaints is carried out in accordance with the internal procedure of Communications, Participation and Consultation, which is part of the SIG. It includes various mechanisms for filing complaints, such as a complaint box, a telephone line, and directly with company representatives in the communities. Investment in infrastructure and services is a financial support, with materials for building and improving basic infrastructure for the communities. With this type of support, we create the minimum conditions of access to services for the communities with which we guarantee human rights, education, health, recreation and entrepreneurship training, among others.