Sustainability REPORT 2017
ry Executive Summa
brands and products GRI Renewable Industries S.L. was founded in 2008 as the main provider of towers, flanges and castings for the renewable energy sector. We use cutting-edge technology to supply high quality
products and services all around the world. In 2015, the Japanese group Mitsui & CO Ltd was integrated as a partner, with the acquisition of 25% of the Company.
Milestones
Development of our factories since 2008
GRI Towers Brazil
2010
2011
2012
2013
2015
2018*
2017
2015
2014
2012
2011
2010
2009
2008
GRI Flanges China II
GRI Flanges China I
GRI Flanges Brazil
GRI Towers South Africa
GRI Towers India
GRI Flanges China IV
GRI CalviĂąo Towers Argentina
2016
2017
2018*
Memoria de Sostenibilidad 2016
GRI Towers Galicia
GRI Flanges Iraeta
GRI Towers Turkey
GRI Flanges China III
GRI Towers Brazil (Cutting and Beveling)
GRI Castings Zestoa
GRI Towers USA
GRI Towers Sevilla
GRI Towers India II
*Factories under construction
2
GRI Renewable Industries Sustainability Report 2017. Executive Summary
GRI in figures Turnover
383,916 Thousand of €
Expenditure in local suppliers
81%
Capex
99,019
6 Ongoing R&D
Projects
4
Net equity
324,851
Thousand of €
Reforestation projects
Thousand of €
Tower production Presence in
8
countries
987 Operational facilities
Employees
3,418
tons CO2
348,254 avoided
Under construction facilities
2
14
professionals
GRI Renewable Industries Sustainability Report 2017. Executive Summary
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Worldwide Presence
SPAIN 4
Head offices. Madrid GRI Towers Galicia GRI Towers Sevilla GRI Flanges Iraeta GRI Castings Zestoa
USA 1
731
404
GRI Towers USA
BraZil 2
512
GRI Towers Brazil GRI Flanges Brazil
GRI Towers plants GRI Flanges plants
ARGENTINA
GRI Castings plants
1
Plant under construction *Not included in the scope of the report.
4
GRI Renewable Industries Sustainability Report 2017. Executive Summary
100
GRI Calviño Towers Argentina*
14
8
Operational facilities
Countries
2
3,418
Under construction facilities
Employees
turKEY 1
246
GRI Towers Turkey
CHINA 4
895
GRI Flanges China I GRI Flanges China II GRI Flanges China III GRI Flanges China IV
India 2
355
GRI Towers India I GRI Towers India II
SOUTH AFRICA 1
275
GRI Towers South Africa
GRI Renewable Industries Sustainability Report 2017. Executive Summary
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misSion, vision and values The Company has developed a global corporative culture that has kept the same values and principles since its origin, but which are adapted to the local necessities of each country, to the current market conditions and to the requests of stakeholders. 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.
MISSION
Risk management
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 has varying risks inherent to its activity and to the different countries in which it operates. For this reason, it counts with a General Internal Control Framework since 2015, which includes: • Internal Control Committee and Policy • Array of Entity Levels Controls • Risk and Control Matrix for each key business process
Corporate policies
Code of Ethics and Conduct
6
Sustainability Policy
GRI Renewable Industries Sustainability Report 2017. Executive Summary
Harassment prevention guidelines and action protocol
Behavioral guidelines to offers of incentives, gifts or invitations
Governance The governing bodies of the company are the General Shareholders’ Meeting and the Board of Directors, the highest body of governance, supervision decision-making and control of the company. As of December 31, 2017, the Board of Directors of the Company comprises of six members, namely:
Secretary Mr. Francisco José Riberas Mera
Member Mr. Mario Ruiz Escribano
President Mr. Juan María Riberas Mera Member Mr. Javier Imaz Rubalcaba
Member Mr. Hiroki Ishihara
Member Mr. Noboru Katsu
Relation and communication with stakeholders GRI Renewable Industries has constant dialogue with its stakeholders through the various communication channels, as are detailed below:
SUPPLIERS »» »» »» »»
Audits Criteria for subcontractor’s selection Supplier Initial Assessment (SIA) Quality Sistem, Monitoring and Measurament
Media »» »» »» »»
Social Networks Website Press Office Press Release
EMPLOYEES »» Leading the Change »» Interdepartament Meetings with management in each of our work sites »» Business and Health & Safety Committees »» Informative meetings with the CEO »» Sustainability report »» Email »» Social Networks and website
SHAREHOLDERS »» Meeting with the Board of Administration »» Ordinary and informative communications
Competence
CUSTOMERS »» »» »» »»
Visit’s to installations Audits conducted by customers Periodic meetings B2B platform available for customers »» Social Networks and website
some
LOCAL COMMUNITIES AND AUTHORITIES »» Agreements with local authorities »» Licenses, permits and authorization »» Consultation time for Environmental Impact Assessment »» Social Action activities
»» Forums and associations »» Specific collaborations
GRI Renewable Industries Sustainability Report 2017. Executive Summary
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Materiality study For this identification, we have amplified and improved our methodology to gather information and representativeness of our stakeholders through technological data and information analysis tools, having the direct cooperation of the management, employees, customers and providers, through the as-
External
Sectorial Benchmark
Internal
Management opinion
Press analysis Press analysis
sessment and the perception of the identified topics. The study identified several aspects that we grouped into 20 topics. We weigh these 20 topics to identify those most relevant to our stakeholders and to the company.
Analysts´ reports
Employees’ opinion
Contractual obligations
Providers´ opinion Key aspects
Results: material aspects in GRI Renewable Industries
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1
Presence in new countries and the development of new products.
2
The commitment of senior management regarding sustainability and good governance.
3
Formal ethics and anti-corruption framework. Communication, rollout and complaint channels.
4
The formal framework for risk control and compliance. Communication, rollout and complaint hannels.
5
Talent attraction and retention. Training programs, professional development and performance reviews.
6
Health and Safety management for employees and subcontractors.
GRI Renewable Industries Sustainability Report 2017. Executive Summary
Economic DIMENSION Growth and global presence
This 2017 GRI Towers Sevilla and GRI CalviĂąo Towers Argentina have started operating and the construction of two new plants continues: GRI Flanges China IV and GRI Towers India II.
New plants in operation GRI Towers Sevilla
Gri CalviĂąo Towers Argentina
New plants under construction Gri Flanges China Iv
Gri Towers India Ii
GRI Renewable Industries Sustainability Report 2017. Executive Summary
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Balance Economic Value Generated (EVG) with a total of 393,497 thousand euros, distributed as follows: Economic Value Generated Thousand euros
Turnover
Economic Value Distributed (EVD) amounting to a total of 475,544 thousand euros, distributed as follows: Economic Value Distributed
2016
2017
Thousand euros
2016
2017
401,319
383,916
Operational costs
269,480
282,700
Financial revenue
4,207
3,463
CAPEX
72,634
99,019
Other revenue
3,702
6,118
Payment to capital providers
7,069
6,522
409,228
393,497
Taxes
28,236
21,628
Personnel
57,300
65,468
Total EVG
Investments in the community Total EVD
200
207
434,919
475,544
Supply Chain
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GRI Renewable Industries´ suppliers are an indispensable asset within the value chain, for their importance in project planning and in the project’s cost competitiveness.
• Evaluation and homologation of 100% suppliers (by SIA) in aspects related to the environment, health & safety, human rights and labor and social aspects.
The following areas are integrated in the ¨Supply Chain¨ corporate division: Procurement, Warehouses, Purchases (direct and indirect), Supplier Quality and Logistics.
• The total expenditure in providers in 2017 reached 514,347.41 euros, of which 81% corresponds to local agents.
GRI Renewable Industries Sustainability Report 2017. Executive Summary
INDUSTRY, INNOVATION AND INFRASTRUCTURE
GOAL 9.4. By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, all countries taking action in accordance with their respective capabilities.
Product innovation
GRI Incredibles 360!!
The developed projects are focused on providing our customers´ products with added value, bringing our own product development and meeting, among others, the high-quality standards and the cost adjustment requirements that the sector has been subject to for years.
Important campaign to inform to the company of the different initiatives and activities.
Processes innovation At GRI Renewable Industries, we believe that the investment in technologies and the continuous processes improvement report relevant benefits, amongst the ones it could be highlighted: the investigation of new production processes, quality excellence, occupational safety and the improvement in the data obtaining, analysis and management. Down below we summarize the main on-going initiatives: • Industry 4.0 implementation: • New methods of manufacturing: • Improvement of equipment • Lean manufacturing
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SOCIAL dimension Headcount
GRI Renewable Industries has an international, competent and highly qualified staff, who are committed to the mission and values of the company, which helps promote sustainable growth. From the Human Resources department, we take care to guarantee stable and quality employment, with growth and promotion opportunities for its employees. In 2017, the workforce of GRI Renewable Industries comprised of 3,418 (direct) professionals and 129 external (indirect) collaborators.
Personnel by country
Brazil
26%
Spain
Gender hombres MUJERES
87% 13%
12
21%
USA
12% 7% Turkey
Main figures
15%
China
India
8%
10%
South Africa
Age 30~50 YEARS
64%
Contract
Employment
Permanent Temporary Full-time Part-time
93.8% 6.2% 99.8% 0.2%
GRI Renewable Industries Sustainability Report 2017. Executive Summary
Turnover
Training
average
hours
22.2%
42,212
SOCIAL dimension
Health and Safety
Our integrated management system (IMS) is based on the international standard OHSAS 18001. Because of this, and as a global company, we accept the commitment to implement a Health and Safety Management System at work as a funda-
mental part of our strategy, based on the constant evaluation of risks associated with our activity. Through this, we make the health and wellbeing of all workers a priority.
IPRL: excellence system for health and safety management The IPRL represents the internal safety standard for health and safety developed by GRI Renewable Industries itself, and which has been applied since the beginning of 2016.
Rates
Working conditions
H&S Management
3 FACTORS
57 FACTORS
29 FACTORS
30%
35%
35%
This year, two new plants have incorporated the IPRL index (GRI Towers USA and GRI Castings Zestoa). The Brazil factories and GRI Towers Turkey reached the level of EXCELLENCE in the IPRL.
SOCIAL dimension
Local Community
One of GRI Renewable Industries´ priorities is to support local development in the areas we have a presence. For this reason, collaboration agreements have been defined with nonprofit organizations with whom we carried out corporate and local activities, mainly related to sports, culture and education, among others. Corporate level collaborations:
GRI Renewable Industries Sustainability Report 2017. Executive Summary
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ENVIRONMENTAL DIMENSION At GRI Renewable Industries, we operate in an efficient and responsible way and we show our interest in the preservation of the environment. Our work is done under the umbrella of an “Integrated Management System” and a Quality, Environment and Health and Safety Policy. It´s certified under standard ISO 14001. Steel is our main raw material, 100% recyclable. The proposals to put the circular economy into practice relate to the complete product life-cycle, in a closed cycle, from its production and consumption to waste management (reutilization, recycling and recovery), the secondary raw material market included, in a closed cycle.
Emissions and climate change At GRI Renewable Industries we are concerned about the fight against climate change. Therefore, we have joined the sustainable development goals this year, and in particular the following ODS:
AFFORDABLE AND CLEAN ENERGY
Ensure access to affordable, reliable, sustainable and modern energy for all
Energy is key to almost all big challenges and opportunities that the world is currently facing. Whether it is for employment, safety, climate change, food production or to increase incomes, universal access to energy is essential.
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CLIMATE ACTION
Goal 7
Goal 13 Take urgent action to combat climate change and its impacts
Climate change affects all countries on all continents. It has a negative impact on the economy and on the lives of people, communities and countries. In the future its consequences will be even worse. People are feeling the consequences of climate change firsthand, which include changes in weather patterns, increasing sea levels and more extreme weather events. Greenhouse gas emissions caused by human activity increase this threat. In fact, emissions never have been this high.
GRI Renewable Industries Sustainability Report 2017. Executive Summary
Balance At GRI Renewable Industries we measure and communicate our carbon dioxide emissions (CO2) to be able to establish improvement objectives.
CO2 Produced
CO 2 Avoided
83,013 tons CO2/year SCOPE 1 23,160 tons CO2/year SCOPE 2 59,853 tons CO2/year
348,254 tons CO2/year
BALANCE +265,241
tons CO2/year
TOWERS PRODUCTION
348,239 tons CO2/year REFORESTATION
15 tons CO2/year
Tower Production
Reforestation
In the financial year 2017, the company manufactured a total of 987 wind towers, with which we estimate that our contribution to combating climate change amounts to 348,239 tons of avoided CO2 emissions in 2017.
GRI Renewable Industries committed in 2015 to minimize its impacts through reforestation, with the objective to match, as far as possible, the number of trees planted to the number of towers built. As a result of these plantings and based on the species that were planted, it is estimated that a total of 608 tons of CO2 will be absorbed over the next 40 years, which is equal to 15 tons per year.
Europe
23%
Asia
17%
America
49%
GRI Towers Galicia
Head offices. Madrid
GRI Flanges Iraeta
GRI Towers India I
Africa
11%
GRI Renewable Industries Sustainability Report 2017. Executive Summary
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Download the online version of the Sustainability Report on APP GRI Renewable Industries
www.leadingthechange.com www.gri.com.es