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United Nations Global Compact

In addition to the tools described above, Abengoa adheres to global initiatives such as the UN Global Compact, whereby signatory companies undertake to manage their operations in accordance with ten principles based on universal declarations and conventions in four key areas: human rights, the environment, labor standards and anti-corruption.

Abengoa has been a signatory to the Global Compact since 2002, and since 2005 has been publishing an annual progress report on the Global Compact website, informing its stakeholders of the performance, challenges and objectives the company sets itself each year in relation to its principles.

Human rights

Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights within their area of influence.

Labor practices at Abengoa and the professional conduct of all employees are governed by the protocols and rules enshrined in the Universal Declaration of Human Rights (UDHR) of the United Nations, in other international agreements approved by the UN and, with regards to labor rights, by the International Labour Organization (ILO).

Principle 2. Companies must make sure that they are not complicit in human rights abuses.

The Common Management Systems governing the company and applicable throughout the entire organization establish guidelines and policies relating to the protection of human rights. These rules and principles also extend to all Abengoa suppliers, who must sign the company’s Social Responsibility Code (SRC) for suppliers and subcontractors. This code contains eleven clauses rooted in the principles of the UN Global Compact and inspired by the international SA8000 standard.

Labor standards

Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Abengoa supports the freedom of association of its workers, which it considers an inalienable right, within a climate of permanent and open dialog.

Principle 4. Businesses should support the elimination of all forms of forced and compulsory labor.

The Social Responsibility Code for suppliers contains a clause that expressly prohibits forced labor and the forced recruitment of employees.

Principle 5. Businesses must support the effective abolition of child labor.

Abengoa vehemently denounces all forms of child labor, in accordance with the terms of ILO Convention 138 on the minimum working age. Likewise, the Social Responsibility Code for suppliers expressly prohibits the use of child labor and requires suppliers to honor the provisions of the ILO.

Principle 6. Businesses should support the elimination of discrimination in respect of employment and occupation.

Abengoa has its own Framework Equality Plan, which extends throughout the company and aims to guarantee equal treatment and opportunities between men and women, while helping to prevent any situation that could constitute direct or indirect labor discrimination based on gender. The company also has a workplace harassment whistle-blowing protocol in place to address any situation that could be considered discriminatory within the company.

Environment

Principle 7. Businesses should support a precautionary approach to environmental challenges.

Abengoa has a clearly defined sustainability policy embedded in the company’s strategy and reflected in a host of different tools: a risk management system, which includes environmental aspects; the GHG Inventory, which allows the company to design specific plans to lower emissions; and an Environmental Management System, which allows the company to measure its environmental impact through eleven environmental factors. All this enables Abengoa to gauge its performance and establish targets on the path to improvement.

Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility.

Abengoa guarantees the sustainability of all its products and processes and demands all suppliers to report the emissions associated with the products and services acquired from them, effectively meaning suppliers are required to report the emissions associated with each order Abengoa places. The company is therefore infusing its policy and culture of fighting climate change throughout the entire supplier chain.

Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies.

Abengoa is a company that applies technologically innovative solutions geared towards sustainable development. The task of championing and rolling out these technologies requires us to use sources with a low environmental impact that help boost energy efficiency. In 2012, Abengoa invested a total of 91.3 M€ in innovation.

Anti-corruption

Principle 10. Businesses should work against corruption in all its forms, including extortion and bribery.

Abengoa combats corruption through its Code of Professional Conduct, which governs actions and labor relations within the company and with stakeholders.