INTEGRATED REPORT 2023
INTEGRATED REPORT 2023
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RENREN
Investidores Energia
THE NETWORK OF ALL NETWORKS
www.ren.pt
In a world where environmental and social challenges require decisive action, we have reaffirmed our unwavering commitment to building a sustainable future.
Committed to the transition to a decarbonized economy, we have reaffirmed our role as agents for positive impact for people, the country and everywhere where we operate. For present and future generations.
This is our responsibility.
This is our commitment.
COMMITMENT
IN ACTION
We recognize that our concerns regarding equality and inclusion are reflected
in the Report and in our practices set out herein. For this reason, we have chosen not to provide a breakdown of information by gender.
INTEGRATED | 2. | Strategy and risk management | 75 | |
I | 1. | Our activity | 18 | |
MANAGEMENT REPORT | 3. | Governance and ethics | 98 | |
4. | Our contribution | 113 | ||
5. | Proposed allocation of net income | 213 |
CONSOLIDATED AND | 7. | Demonstrations individual financial and annex | 311 |
6. | Demonstrations consolidated financials and annex | 216 |
II | INDIVIDUAL ACCOUNTS |
III | CORPORATE | 8. | Information on shareholder, structure, | |
organization and corporate governance | 372 | |||
GOVERNANCE REPORT | 9. | Assessment of corporate government | 438 | |
Annex to the governance report | 450 |
ANNEXES | 1. | Legislation on energy | 474 |
2. | GRI table | 476 | |
3. | IIRC table | 495 | |
4. | SASB table | 496 | |
5. | TCFD table | 498 | |
6. | CMVM table | 503 | |
7. | European environmental taxonomy | 506 | |
Glossary | 522 | ||
Contacts | 528 |
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- INTEGRATED MANAGEMENT REPORT
COMMITMENT
TO RESULTS
We transform challenges into achievements, shaping a more sustainable world for future generations.
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ABOUT
THE REPORT
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This Integrated Report brings together the reporting of financial, non-financial/ sustainability, and corporate governance information regarding all REN Group companies. By consolidating the economic, social, and environmental information considered to be most relevant for the company and our stakeholders, together with our corporate governance practices, the report provides a transparent picture of REN's commitments and legal obligations in these areas.
This report, covering the period from
1 January to 31 December 2023, follows the Integrated Reporting (IR) guidelines for the preparation of integrated reports and consists of four main parts:
- Integrated Management Report, which includes our activity, strategy, commitments, risk management, governance and our performance and contribution to sustainable development;
- Consolidated and Individual Accounts;
- Corporate Government Report, which also includes the Remuneration Report; and
- Annexes, including alignment with sustainability reporting standards/ guidelines.
The consolidated and individual financial statements for the financial year and the social and environmental content of this report were approved by the Board of Directors at their meeting of 21 March 2024. It is the Board of Directors' opinion that this information accurately and suitably reflects the financial position of the Group and its different subsidiary companies and provides a balanced overview of its policies, organization, practices, and operating results in areas of sustainability considered to be most relevant, in compliance with the reference Standards and Directives
as implemented.
GRI 2-2 | GRI 2-3 | GRI 2-4 | GRI 2-5 |
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REN seeks to adopt the best practices in financial,non-financial and corporate governance reporting.
The sustainability information was audited by EY (Ernst & Young, Audit & Associados, SROC , S.A.), in accordance with the principles of Standard ISAE 3000 (International Standard on Assurance Engagements 3000) and with reference to GRI standards (2021 version) and the AA1000AP standard. This check provides a limited level of assurance with respect to reliability.
REPORTING OF FINANCIAL INFORMATION
which have been implemented in the EU, should be understood as forming part of Financial Reporting Standards.
The individual financial statements were drawn up in accordance with Portuguese law, including Decree-Law No 158/2009 of 13 July 2009, updated by Decree-Law No 98/2015 of 2 June 2015 and by Ministerial Implementing Order No 220/2015 of 24 July 2015, and in accordance with the structural concept, accountancy standards, financial reporting (NCRF) and other requirements applicable
MANAGEMENT INTEGRATEDREPORT
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REPORTING OF
NON-FINANCIAL/ SUSTAINABILITY INFORMATION
REN has prepared its reporting of non- financial/ sustainability information in accordance with internationally recognized standards and guidelines:
Principles of the AA1000AP standard(AccountAbility Principles - 2018: Inclusion, materiality, response capability, and impact);
UNGC (United Nations Global Compact) principles;
GRI (Global Reporting Initiative) standards, an international standard for the development of sustainability reporting;
SASB Standards(Sustainability Accounting Standards Board);
TCFD Recommendations(Task Force on Climate-RelatedFinancial Disclosure) on the disclosure of financial information related to climate risks and opportunities);
CMVM (Portuguese Securities Market Commission) reporting modelfor the disclosure of non-financialinformation; and
EU Taxonomy regulation(Regulation No 2020/852).
Additionally, this year, REN began to solidify reporting in line with the Corporate Sustainability Reporting Directive (CSRD), in the form of a correlation table between GRI Standards and ESRS (European Sustainability Reporting Standards).
The consolidated financial statements were drawn up on the assumption that operations are to continue using the accounting books and records of the companies included in the consolidation see Part II - Consolidated and Individual Accounts. This accounting information is maintained in accordance with accountancy standards in effect in Portugal, adjusted during the consolidation process so that the consolidated financial statements are in accordance with International Standards on Financial Reporting as implemented throughout the European Union, in effect for financial years starting on 01 January 2023.
Both the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the International Accounting Standards (IAS), issued by the International Accounting Standards Committee (IASC) and respective interpretations - IFRIC and SIC, issued
by the International Financial Reporting Interpretation Committee (IFRIC) and Standard Interpretation Committee (SIC),
to the financial year ending 31 December 2023 see Part II - Consolidated and Individual Accounts. The accounts were also audited by Ernst & Young, Audit & Associados, SROC, S.A.
CORPORATE GOVERNANCE REPORTING
The information for reporting on corporate governance is drawn up in accordance with that set out in legislation and in the regulations to which REN is subject and as a company issuing shares traded on the regulated market.
The report was drawn up in accordance with the recommendations set out in regulations in force and in the Code of Corporate Governance of the Portuguese Institute of Corporate Governance (IPCG) and respective interpretation standards. In this regard, the report also includes an analysis of compliance with the IPCG code, providing details of
the terms of implementation for each recommendation.
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MATERIALITY
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Every two years, REN conducts a materiality review, a process deemed relevant to identify material issues, both for the purposes of reporting non-financial information and for the corresponding strategic planning.
In 2023, we conducted our latest materiality review, which formed the basis for updating our sustainability approach see chapter 2.1 Strategy.
The list of topics for the materiality assessment resulted from a review of REN internal information, as well as from external sources. The external sources consulted include some of the requirements of the double materiality from the European sustainability reporting standards (ESRS), GRI and SASB Standard guidelines, as well as an analysis of reference peers.
From a list with a total of 27 environmental, social and governance topics, 13 were identified as material (compared to the 20 material topics identified in the 2021 process). Among the 13 material topics, we categorized
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MATERIAL
ISSUES
IDENTIFIED
eight as extremely significant and five as significant, based on their impacts on people, the environment, and REN's capacity to create value. Details of this assessment, including the materiality matrix, are publicly accessible on our websitefor further reference.
Furthermore, when reviewing the sustainability strategy, four additional material topics were identified during an internal workshop.
MATERIALITY REVIEW PROCESS
IDENTIFICATION OF THE TOPICS AND IMPACTS OF THE ORGANIZATION
- Through benchmarking and analysis of the main sustainability trends
PRIORITIZATION OF TOPICS FOR IMPACT
- Direct stakeholder consultation process
PRIORITIZATION OF BUSINESS-RELEVANT TOPICS (FINANCIAL)
- Through direct consulting of internal stakeholders to analyse the relevance of the topics
MATERIALITY MATRIX
- Consolidation of the results and positioning of the different topics, through the materiality matrix
APPROVAL AND INTEGRATION OF THE TOPICS IN THE SUSTAINABILITY APPROACH
- Approval of the topics by top management (Executive Committee)
- Review of the sustainability approach
GRI 3-1 | GRI 3-2 | GRI 3-3 |
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MATERIAL TOPICS
MATERIALITY | |||||
GRI/ ESRS | |||||
TOPIC | DESCRIPTION | FINANCIAL | IMPACT | LOCATION | INDICATOR |
EXTREMELY SIGNIFICANT MATERIAL TOPICS
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Economic performance
Operational excellence
Risk and crisis management
Operational safety and emergency preparedness and response
Efficient management of financial resources and enhancing REN's economic growth through sustainable practices, demonstrating a resilient, environmentally responsible business model based on fair and inclusive growth.
Processes through which REN ensures the uninterrupted supply of electricity and gas, meeting quality and safety criteria, maintaining the balance between supply and demand in real time.
Incorporation of a governance model and robust risk and crisis management processes which consider different scenarios, enabling greater adequacy and responsibility in decision making, in order to better meet the short, medium and long-term interests of stakeholders, safeguarding the continuity of operations.
Ability to solve emergency situations, through the definition of robust processes and practices, which enable the early detection of an incident, the adequate allocation of human and technical means and, consequently, a faster and effective restoration of normality.
4.1 Financial performance | GRI 201-1 | |
1.2 Electricity | - | |
1.3 Gas | ||
2.3 Risk management | GRI 2-25 | |
ESRS 2 | ||
1.2 Electricity | GRI 403-2 | |
1.3 Gas | ||
4.5 Human capital |
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Integration of renewable energies
Respect for human rights
Contribution and implementation of measures and projects to integrate renewable energy into the national electricity grid, in line with the EU-European energy and climate policies and strategy, as an active agent in combating climate change and the decarbonization of the industry.
Promotion of human rights (e.g., fight against child labour, modern slavery) throughout the value chain, through the practices implemented to ensure that such rights, particularly with regard to labour relations and rights, are respected in the organization as well as up and downstream.
1.1 Context
1.2 Electricity
1.3 Gas
4.2 Responsible supply chain management
4.5 Human capital
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GRI 408-1;409-1;410-1
ESRS S1
Significant impact | Moderate impact | Low impact |
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MATERIALITY | |||||
GRI/ ESRS | |||||
TOPIC | DESCRIPTION | FINANCIAL | IMPACT | LOCATION | INDICATOR |
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Occupational health | Management and promotion of the health and safety of REN employees in all | |
and safety | company activities and operations, through different mechanisms and initiatives, | |
more specifically those set out under the Occupational Health and Safety | ||
Management System. | ||
Health and safety | Prevention and mitigation of health and safety risks in communities located | |
of surrounding | near REN infrastructure, taking appropriate action. | |
communities |
SIGNIFICANT MATERIAL TOPICS
4.5 Human capital | GRI 403-1 | |
to 403-10 | ||
ESRS S1 | ||
4.4 Communities | GRI 416-1 | |
4.6 Natural capital | to 416-2 |
INTEGRATED MANAGEMENT
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Anti-corruption
Ethics and conduct
Climate change
Energy efficiency
Implementation of anti-corruption practices, through codes, policies, procedures and control and investment in awareness and training on relevant matters to ensure the integrity of operations and transactions carried out by REN.
Establishing solid relationships, characterized by high levels of trust, achieved by implementing policies and practices consistent with the values and principles of the organization when dealing with issues such as privileged information, corruption and related infringements, discrimination, environmental compliance, anti-competitive behaviour, and corporate social responsibility.
Monitoring of greenhouse gas emissions directly attributable to the organization and throughout the value chain and promotion of eco-efficiency in the development of projects, seeking to be an active agent in the fight against climate change and to ensure adaptation and resilience of activities with respect to climate change.
Generate the same amount of energy using fewer resources (natural or otherwise) resulting from the implementation of energy efficiency measures, including process improvement and equipment modernization in relation to REN's activities and operations.
3.3 Ethical culture and fight against corruption
3.3 Ethical culture and fight against corruption
4.6 Natural capital
4.6 Natural capital
GRI 205-1 to 205-3
ESRS G1
GRI 2-23 to 2-27 and 205-1 to 205-3
ESRS G1
GRI 305-1 to 305-7
ESRS E1
GRI 302-1 to 302-5
ESRS E1
Significant impact | Moderate impact | Low impact |
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MATERIALITY | |||||
GRI/ ESRS | |||||
TOPIC | DESCRIPTION | FINANCIAL | IMPACT | LOCATION | INDICATOR |
Management of human | Attracting and managing talent effectively, development of knowledge and skills | 4.5 Human capital | GRI 2-7;2-21; | ||
capital and training | in alignment with operational needs, fostering training practices, promotion of | 2-30;202-1; | |||
REN values and recognition of employees through career progression. | 401-1 to 401-3; |
404-1 to 404-3;
406-1;407-1;
408-1 and
409-1
ESRS S1
RELEVANT MATERIAL TOPICS
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Biodiversity and | Implementation of best practices for the protection, conservation and | |
forestry | restoration of biodiversity and natural ecosystems. | |
Sustainable supplier | Responsible management of risks and opportunities related to the supply chain, | |
chain | namely through mechanisms to ensure the mitigation of negative social and | |
environmental impacts, guaranteeing alignment with REN's principles of ethics | ||
and conduct. |
4.6 Natural capital | GRI 304-1 | |
to 304-4 | ||
ESRS E4 | ||
4.2 Responsible supply chain | GRI 204-1; | |
management | ESRS G1 |
Diversity, equality, and | Diversity and equal opportunities through organizational practices that foster | 4.5 Human capital | GRI 405-1 | ||||||||
inclusion | the fight against discrimination and an inclusive and safe environment, as a | to 405-2 | |||||||||
factor in improving operational efficiency and promoting innovation. | ESRS S1 | ||||||||||
Community | Investment in culture, education, and support for local communities, based | 4.4 Communities | GRI 203-1 | ||||||||
involvement | on policies of proximity supported by initiatives with added social value and | to 203-2; | |||||||||
and support | participation by employees in corporate volunteer actions. | 413-1 to 413-2 | |||||||||
ESRS S3 | |||||||||||
Significant impact | Moderate impact | Low impact |
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REN - Redes Energéticas Nacionais SGPS SA published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 17:07:04 UTC.