Sustainability Report 2018 Executive summary
Our company GRI Renewable Industries was founded in 2008 as an industrial supplier of towers, flanges and castings for the renewable energy sector. It applies the latest technology to provide high quality products and services worldwide. In 2015, the Japanese group Mitsui & CO Ltd was incorporated into the company’s shareholding as a partner, with the acquisition of 25% of the company. GRI Renewable Industries has a global corporate culture that retains the same values from the outset, but adapts to the local needs of each country, to current market conditions and to the demands of stakeholders. From the beginning the company presented a remarkable annual growth. 2018 was a stable year, where efforts were aimed at consolidating, integrating and adjusting the recent factories of Amarillo (Texas), Argentina and Seville (Spain), as well as starting up factories in China IV and India II. It is currently present in 8 countries with a total of 16 factories. GRI employs more than 3,500 professionals.
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Gri Renewable Industries Sustainability Report 2018. Executive Summary
mission
GRI Renewable Industries mission is to globally meet the needs of our customers considering their activity, the safety of our employees and the respect for the environment.
vision
Global and innovative leader in the manufacturing of wind turbine components, creating a more sustainable and emission-free future for everybody.
values Honesty
Humility Tenacity Work
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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GRI in 2018 figures
GRI Renewable Industries is committed to contributing to the economic, social and environmental progress of the countries in which it operates.
Milestones Development of our factories since 2008.
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2008
GRI Towers Galicia
2009
GRI Towers Brazil
2010
GRI Flanges Iraeta
2010
GRI Flanges China I
2011
GRI Flanges China II
2011
GRI Towers Turkey
2012
GRI Towers India I
2012
GRI Flanges China III
2013
GRI Towers Brazil (Cutting & bevelling)
Pontevedra. Spain Pernambuco. Brazil Guipuzcoa. Spain Shandong. China Shandong. China Bandirma. Turkey Kolhapur. India Shandong. China Pernambuco. Brazil Atlantis. South Africa Guipuzcoa. Spain Pernambuco. Brazil
2014
GRI Towers South Africa
2015
GRI Castings Zestoa
2015
GRI Flanges Brazil
2016
GRI Towers USA
Texas. USA
2017
GRI Towers Sevilla
Sevilla. Spain
2018
GRI Calviño Towers Argentina
2018
GRI Flanges China IV
Buenos Aires. Argentina Shandong. China
2018
GRI Towers India II
Kolhapur. India
Gri Renewable Industries Sustainability Report 2018. Executive Summary
81%
of expenditure on local suppliers
386 Turnover Million €
2,000
60
towers Production capacity
Investments Million €
8
Countries Presence
16
Factories in operation
Economic Contribution Through our activity we generate numerous benefits in the community around us. We dynamize local development by promoting employment in the area, the growth of new suppliers and businesses, as well as the improvement of infrastructures through the payment of local taxes, among others.
92%
professionals of local origin
3.8% Rotation
64%
% certification Ohsas 18001
3,530 Professionals
Social Contribution
48,866 Hours of training
Our activity requires the hiring of numerous local workers to whom we offer a stable employment, which increases the economy of the area and the purchasing power of families. In addition, we carry out numerous social action activities to improve the environment.
89% permanent contracts
86%
% certification ISO 14001
Environmental Contribution Our activity is directly related to the generation of renewable energy, so we indirectly contribute to mitigating the carbon footprint and the effects of climate change. In addition, we manage our plants to minimize our environmental impact
Emissions
135,707 Tn CO2
Emissions avoided
STEEL
245,485
100%
Tn CO2
288,220 MWh
RECICLABLE recyclable EconomĂa circular
energy consumption
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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Global presence
8
16
Countries
Plants
3,530 Professionals
USA SPAIN GRI Towers USA
BRAZIL
GRI Towers Brazil
GRI Flanges Brazil ARGENTINA
SOUTH AFRICA
GRI Towers South Africa GRI Towers plants GRI Flanges plants
GRI Calviño Towers Argentina*
GRI Castings plant *Not included in the scope of the report.
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Gri Renewable Industries Sustainability Report 2018. Executive Summary
GRI Towers Sevilla
GRI Flanges Iraeta
GRI Castings Zestoa
GRI Towers Galicia Headquarters
GRI Towers Turkey
TURKEY
CHINA INDIA
GRI Flanges China I
GRI Flanges China II GRI Towers India I GRI Flanges China III
GRI Towers India II*
GRI Flanges China IV*
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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Values, ethics and risk management GRI Renewable Industries has several risks inherent to its activity and to the different countries where it operates. For this reason, since 2015 the company has had a General Internal Control Framework, in which the following policies stand out.
Code of Ethics and Conduct
VALUES
Honesty Humility Tenacity Work
Sustainability Policy
Harassment prevention guidelines and action protocol
Behavioral guidelines to offers of incentives, gifts or invitations
Clients GRI Renewable Industries’ success is based on its ability to identify and meet the needs of its customers We work with highly qualified innovation teams, focused directly on product improvement, process efficiency and cost reduction, while upholding high quality and safety standards. All our factories are certified under the international quality standards ISO 9001 and EN1090.
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Customer proximity is a fundamental aspect, which is why we are committed to personalization and constant improvement of the service through our specialized sales teams, tailored to each type of business, client, country and product, allowing us to provide more targeted coverage.
Gri Renewable Industries Sustainability Report 2018. Executive Summary
We contribute to the achievement of Sustainable Development Goals from an economic, social and environmental point of view, which reinforces our Human Rights commitment.
The Global Compact Principles
Anticorruption
Sustainable Development Goals
Economic
Human Rights and Labor Standards
Social
Environment
Environmental
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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SDG 13.2.
SDG related to the project At GRI Renewable Industries we consider that this program is directly aligned with SDG 13.2. “ To advance in the different initiatives against climate change”. In addition, through our activity, we also generate positive impacts on the following SDG:
SDG 15.2.
SDG 17.17.
By 2020, promote sustainable management of all types of forests, end deforestation, recover degraded forests and increase afforestation and reforestation globally.
Encourage and promote effective partnerships in the public, public-private and civil society spheres, drawing on the experience and resource strategies of partnerships.
“One Tower One Tree” Project
CO2 avoided by reforestation projects
With the aim of offsetting part of the CO2 emissions derived from our processes, through reforestation projects that contribute to absorbing the CO2 emitted.
KPI: To equal or exceed each year the number of towers manufactured with the number of trees planted.
In order to contribute to the fight against climate change, we estimate the emissions avoided according to the number and type of species planted.
KPI: To increase annually the CO2 avoided through
SDG
Result In 2018 we planted a total of 2,710 trees in Spain, which is 71% more than the number of towers manufactured (768 towers).
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Gri Renewable Industries Sustainability Report 2018. Executive Summary
reforestation plans, with the objective of avoiding 100 tons/year by 2022.
SDG
Result In 2018 we added 13 t/year, which with the 53 t/year of 2016 and 2017, represent a total of 66 t/year.
SDG 9.4.
SDG related to the project GRI Renewable Industries believes that many of our design and innovation initiatives are directly aligned with SDG 9.4. “By 2030, we will be modernizing infrastructure and reconverting industries to be sustainable, using resources more effectively and promoting the adoption of clean and environmentally sound industrial technologies and processes, and getting all countries to take action according to their respective capabilities. In addition, through our activity, we also generate positive impacts on the following SDG:
SDG 7.3.
SDG 8.2.
By 2030, double the global rate of energy efficiency improvement.
Achieve higher levels of economic productivity through diversification, technological modernization and innovation, including focusing on high value-added and labor-intensive sectors.
SDG 17.17. Encourage and promote effective partnerships in the public, publicprivate and civil society spheres, drawing on the experience and resource strategies of partnerships.
Product innovation Aimed at increasing the number of projects focused on improving our products (new materials and designs, etc.).
KPI: To develop new, more efficient and versatile products for the development of new sites.
SDG RESULT Rocket project and Protos project
SDG 12.2. Achieve sustainable management and efficient use of natural resources by 2030.
Innovation in process Aimed at improving our production processes, having a highly competitive industrial model.
KPI: To define improvement projects in our facilities that allow to reduce the consumption of natural resources, to be more efficient and competitive.
SDG RESULT Improvement in processes of welding, painting, pre-grit blasting and doors.
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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SDG 4.4.
SDG related to the project At GRI Renewable Industries we believe that our recruitment and team building initiatives are directly aligned with SDG 4.4. “By 2030, we will significantly increase the number of young people and adults who have the necessary skills, particularly technical and professional, to access employment, decent work and entrepreneurship. In addition, through our activity, we also generate positive impacts on the following SDG:
SDG 8.8.
SDG 10.3.
Protect labor rights and promote a safe and secure working environment for all workers, including migrant workers, in particular migrant women and persons in precarious employment.
Ensure that there are equal opportunities and reduce inequality of outcomes, including the elimination of discriminatory laws, policies and practices and promoting appropriate legislation, policies and measures in this regard.
Local Employment
Hours of Training
Aimed at creating local wealth in the countries in which we operate, through stable local hiring, the payment of decent wages, with legal working hours and shifts.
The qualification and training of our professionals contributes to their professional development and promotion, thus improving their options for the future.
KPI: Maintain the average of
KPI: Improve and adapt training plans and hours received by employees.
fixed/stable contracts >80%.
SDG
RESULT In 2018 the percentage of local employment reached 92%. In addition, employees with permanent contracts account for 89% of the total.
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SDG
RESULT In 2018 the performance evaluation methodology was improved and a total of 48,866 hours of training were given, 14% more than in 2017.
Gri Renewable Industries Sustainability Report 2018. Executive Summary
Relationship and communication with stakeholders GRI Renewable Industries engages in constant dialogue with its stakeholders through a variety of communication channels, as summarized below:
• Audits • Supplier Portal • Supplier Initial Assessment (SIA) • Quality system
• Leading the Change • Interdepartmental meetings with management. • Works Council and Health and Safety Committees • Briefings with senior management • Sustainability report • E-Mail, social networks and website
• Visits to the facilities • Client audits • Periodic meetings • “B2B Platforms” available at some clients • Social networks and website
Employees
Clients
Suppliers Media • Social channels • Corporate website • Press room • Press releases to the media
Local communities and administrations
Competition
Stakeholders
• Forums and associations • Specific collaborations
• Meetings of the Board of Directors • Ordinary and informative communications
• Agreements and settlements with local authorities • Licenses, permits and authorizations • Consultation periods in Environmental Impact Assessments • Participation in social action. 3rd sector
Materiality analysis Summary of material matters
Material Matters Risk-control framework
Relationship with the client. Communication and response mechanisms
Data protection, cybersecurity and intellectual property risks
Attracting and retaining talent
Compliance: availability of an ethical and anti-corruption framework
Safety and health management
Supplier certification. Aspects related to sustainability
Environmental management
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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Economic
DimensiOn Growth and global presence In 2018, the GRI Flanges China IV and GRI Towers India II plants came into operation.
GRI Flanges China IV
2,000 TOWERS Production capacity
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GRI Towers India II
386 Turnover Million €
Gri Renewable Industries Sustainability Report 2018. Executive Summary
60 CAPEX
Million €
Supply chain
PROCUREMENT 2018 data
WAREHOUSES
PURCHASING
SUPPLIER QUALITY
LOGISTICS
• Evaluation and approval 100% suppliers. • Expenditure on suppliers exceeded 500 million euros, of which 81% corresponded to local agents.
Innovation • ”Innovation and University Training Centre Elcano” project at the Port of Seville. • Project of R&D Center in Turkey within the facilities of GRI Towers Turkey.
Process Improvement At GRI Renewable Industries we believe that technological investment and continuous improvement through innovation is part of our culture and brings us important benefits, including quality as excellence, employee safety and better control of results (data collection, analysis and management). • Industry 4.0 and in the digitalization of the manufacturing process in all its phases. • Improvements in welding processes, robotic painting system, automatic pre-grit blasting systems and automatic system for the door frame.
Product improvement In terms of flanges: focused on the development of new flanges with larger cross-sections through new, more flexible and efficient jointing technologies. In terms of towers: focused on the development of new lighter towers, which allows for cost reduction and improved logistics. Gri Renewable Industries Sustainability Report 2018. Executive Summary
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SOCIAL / People DimensiOn
At GRI Renewable Industries, we have an international workforce that is highly qualified, competent and committed to the company’s mission and values, which contributes to sustainable growth. In 2018, the staff at GRI Renewable Industries is made up of more than 3,500 professionals.
Workforce by country
Turkey South Africa
7%
Type of contract
>50 years
China
USA
Workforce by age 9%
30%
Temporary
≤30 years
11%
23%
Brazil
6%
11%
9% India
10%
Spain
>30 ≤50 years
27%
Permanent
68%
89%
Origin of employees
Gender
No Local
8%
Men
88%
Women
12%
Local
92% 16
Gri Renewable Industries Sustainability Report 2018. Executive Summary
SOCIAL / Health and Safety DimensiOn
IPRL: Excellence system for health and safety management The IPRL represents the internal health and safety standard developed by GRI Renewable Industries. It defines common Health and Safety criteria applicable to all the group’s production centers. It is therefore an excellent reference framework for risk management and opportunities for improvement. IPRL shows a performance with a score from 0 to 100 and a weighted average of three criteria that are developed into 89 factors.
Rates 30%
Working conditions 35%
H&S Management 35%
3 FACTORS
57 FACTORS
29 FACTORS
GRI Towers Turkey and the GRI factories in Brazil reached the level of EXCELLENCE in IPRL and low occupational accidents.
SOCIAL / Local Community DimensiOn
One of the priorities of GRI Renewable Industries is to support local development in the areas where we are present. To this end, collaboration agreements have been established with non-profit entities with which we develop corporate and local activities, mainly in the areas of education, sport, health and culture. Collaborations at the corporate level:
Collaborations at a local level:
17%
Economic development and social welfare Culture
6% Environment
21%
Education
28% Health and sport
28%
Gri Renewable Industries Sustainability Report 2018. Executive Summary
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Environmental
DimensiOn
Our work is carried out under the umbrella of an Integrated System and a Quality, Environment and Health and Safety Policy, certified under the ISO 14001 standard. Steel is the main raw material, 100% recyclable. Therefore, we focus on the “Circular Economy” referring to the entire life cycle, from production and consumption to waste management (reuse, recycle and recover) including the secondary raw materials market, in a closed cycle.
Reducing the weight and quantity of material used
Steel can be reused or reconverted in many ways
Through innovation, we have achieved significant reductions in the weight of our structures, resulting in significant savings in raw materials.
Ratios of reuse have great potential for further growth. 1 ton of recycled steel saves on average: 1,400 kg of iron ore / 740 kg of coal / 120 kg of limestone
Steel is the most recycled material in the world It does not lose properties during the process. The high value of the scrap, its magnetic properties and its affordable recovery allow for recycling.
A large part of the steel products can be remanufactured Wind farms can be restored while practically maintaining their original value.
Emissions and climate change At GRI Renewable Industries we care about fighting climate change and contribute through the following Sustainable Development Goals (SDG):
SDG 7
SDG 13
Ensure access to affordable, reliable, sustainable and modern energy for all
Take urgent action to combat climate change and its impacts
Energy is central to nearly all the great challenges and opportunities facing the world today. Whether it’s for employment, security, climate change, food production or to increase incomes. Universal access to energy is essential.
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Climate change affects every country on every continent. It has a negative impact on the economy and lives of individuals, communities and countries. In the future the consequences will be even worse. People are now undergoing the consequences of climate change, which include changes in weather patterns, rising sea levels and more extreme weather events. Greenhouse gas emissions caused by human activities increase this threat. In fact, emissions have never been so high.
Gri Renewable Industries Sustainability Report 2018. Executive Summary
Avoided emissions Reforestation: One tower, one tree GRI Renewable Industries committed itself in 2015 to minimizing these impacts through reforestation, with the goal of matching, as far as possible, the number of trees planted with the number of towers manufactured. In 2018, as a result of these plantations, it has been estimated that 525 tons of CO2 will be absorbed over the next 40 years, which corresponds to 13 tons per year.
GRI Towers Galicia
Headquarters Madrid
GRI Flanges Iraeta y GRI Casting Zestoa
GRI Towers Sevilla
Production of Towers In 2018, the company manufactured more than 700 towers, with which we estimate that our contribution to climate change amounts to a total of 245,472 tons of CO2 avoided.
Balance
By measuring its carbon dioxide (CO2) emissions, GRI Renewable Industries helps to improve the communication of its impacts and specific data collection, with a goal of setting possible improvement targets.
CO2 Produced
CO2 Avoided
135,707 tons CO2/year
245,485 tons CO2/year
BALANCE 109,777
tons CO2/year avoided Gri Renewable Industries Sustainability Report 2018. Executive Summary
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