3.1CULTURE

At Madrileña Red de Gas, we believe in people, in those who aspire to offer the best of themselves, professionals who strive to make the values of the company a reality in daily decision making: a reflection of our culture and, therefore, of our success.

It is these figures that have allowed us to continue onwards in 2018 to give the best of each one of us.

We are a flexible and dynamic company, with a clear vision about the importance of attracting and retaining professionals who contribute to making MRG a competitive company, prepared to overcome and manage the challenges that arise year after year.

In a world of work in which we are experiencing an unprecedented technological revolution, we are committed to adopting a human perspective in terms of each of the members of our team. Together, we are creating a business culture based on collaboration, closeness, improvement and continuous growth. A reflection of this is our headquarters: an open and bright space, without barriers or offices.

Another of our hallmarks is shown in the work-life balance. In this matter, MRG advocates a policy of trust, based on objectives and without fixed schedules. We want our professionals to have greater freedom when it comes to managing their personal and work time. We trust in their independence and planning capacity to achieve their objectives. This trust leads to an increase in productivity and efficiency.

The organization of working hours, characterized by flexibility, allows our professionals to meet the agreed annual hours in a more efficient way.

Similarly, MRG is characterized by stable employability, with one hundred percent permanent contracts. At the same time, it is committed to the gradual renewal and rejuvenation of its workforce. Therefore, in the last four years, average seniority has gone from 20 to 16 years in the 2018 financial year, and the average age of the worker has fallen by 6% in the same period.

In reference to renewal, MRG is committed to energizing its staff. New hires have averaged 7% of the annual workforce in the last four years. The average age of new hires in this period is 32 years.

In 2018 alone there were 11 new hires, which represented 9% of the total workforce. The average age of these hires was 36 years, and 55% were women.

In 2018, the stability and management of an adequate employment relations framework for the standardization of processes, and other issues of key importance for the company as a whole, have facilitated the signing of our second collective agreement. This agreement maintains the conditions of its predecessor and applies a new salary review system, based on non-linear equity and job performance, as it has been historically. The latter has been a great achievement for MRG, as it will boost motivation and productivity, align work with the company’s success and help attract and retain the talent of our professionals.

Health and sports are also important in our corporate culture. Therefore, we try to provide our team with greater balance and well-being by making a physiotherapist available to them, as well as the new introduction of Pilates classes.

On the other hand, within the scope of corporate social responsibility, and in our commitment to the environment, we have implemented a zero paper policy, focused on achieving a digital office. Also, another of the commitments adopted this year is the gradual reduction of the use of plastics in our offices.

Additionally, and in relation to sustainability policies, at MRG we offer all our professionals subsidies for the acquisition of natural gas vehicles.

100% of the Madrileña Red de Gas fleet has used alternative energies since 2015. Now our challenge is our suppliers (extended enterprise) and our families.

3.2PEOPLE

At Madrileña Red de Gas, we believe in sustainability and it is therefore necessary to maintain a strategy that allows us to be competitive and grow as a business. For this reason, we are committed to generational, experiential and also gender diversity.

In a sector traditionally occupied by men like the gas industry, the presence of women is increasing. This is the case of MRG, where we are proud to prioritize talent and skills above all when selecting our professionals. In addition, we promote gender equality, especially in executive positions, as can be seen in the development of our workforce during these years.

The gender diversity of the Board of Directors has grown to reach the current 29% of women versus 71% of men, with an age range between 40 and 59 years. Similarly, the total percentage of women in the MRG workforce has increased by 11 points over the last four years.

MEMBERSHIP OF THE BOARD OF DIRECTORS
(According to gender)

	Men	Women
Source: MRG.
2015	100%	0%
2016	89%	11%
2017	89%	11%
2018	71%	29%

At MRG, management positions form the bulk of the workforce (46% of the total), followed by the technical team (38%) and the executive team, which has 16% representation. In addition, during this year we have fulfilled our commitments to progressively rejuvenate the workforce and attract new talent to the team. The quality of the professionals that have joined MRG is remarkable: their different profiles and their experience in other sectors and businesses add extra value to the company.

This has been another year when we have strengthened company dynamism through the promotion of scholarships, offering professional opportunities to young people and responding to their concerns and needs.

3.3PROMOTE TALENT

Like many other companies, Madrileña Red de Gas has been changing and adapting to the demands of the sector and market during these years, because we know that success or failure depends on us. Also, to achieve the success of the company, it is essential to know each other and identify our strengths and weaknesses. This way we will be able to develop our project as competitive professionals, prepared to assume responsibilities, changes and challenges and keep growing as a company.

The people management model has been one of the issues that has distinguished us during 2018. It is a model based on the progress of the company through the development of the people who comprise it.

We are carrying out a series of evaluation processes for our employees that allow them to subsequently work on their individual development plans (IDP). They have been carried out gradually, in several stages and with different groups.

These processes, whose main objective is the alignment of personal growth and the achievement of MRG results in the short term, will continue to be implemented until the end of 2019. Once completed, the data obtained will allow us to measure and analyse the effectiveness of the process and implement the necessary improvements in order that it be of benefit to all of us. So far, a total of 953 hours has been invested, including evaluation, comments and improvements and training on the PDI process.

The involvement of professionals in the process is key and fundamental to the success of the procedure, since, for the development of their PDI, each worker has the support, guidance and help of their managers and colleagues, as well as the human resources management.

Similarly, the “Career conversations” initiative, established in 2018, has been well received by managers and collaborators. Our professionals have been able to transfer their expectations and professional motivations, something of vital importance for the company, since, once contrasted with what their direct managers believe may be more beneficial for their development, it allows us to establish the most appropriate channels through which they may be applied.

3.4FORCE FOR CHANGE

The training of our professionals plays a very important role in the evolution of Madrileña Red de Gas as an engine of change that leads us to face our daily challenges.

Knowing this, economic investment has been increasing annually until doubling what was invested in the early years. In 2018, we have invested more than 120,000 euros and 5,200 hours in training, received by 84% of employees with an average of 32 hours per employee.

The company evolves and with it training, as this must not only respond to current needs but also help prepare the professionals that MRG will need in forthcoming years. The experience has allowed us to have more information and resources to cover these needs more satisfactorily. That is how we have designed the 2018 Training Plan, emphasizing four fundamental aspects of that future: talent, business know-how, security and languages.

To achieve this, Madrileña Red de Gas has strongly committed to skills training, which has grown exponentially to quadruple the investment in 2018, if we compare it with other years.

In collaboration with the prestigious consultancy firm, Ackermann, we have designed Individual Development Plans (IDP) so that our professionals can work on the competencies that have been identified as necessary, providing 200 hours of training in «Learning Management», with specific training in different areas beginning in January 2019.

In addition, in line with the needs of the company, we have strengthened training in customer service, implementing a new concept of training through «Gamification», which has become something ludic that allows our professionals to enjoy and consolidate learning through video games, arousing greater interest on the part of employees in everything related to training.

In 2018, one in every three hours of training has been devoted to technical aspects. Providing our customers with quality service is a prime objective for Madrileña Red de Gas, therefore ad hoc courses have been delivered to respond to specific needs. Cross-training has also been emphasised amongst employees, through our most experienced professionals, in order that we can guarantee the company’s Know How.

The low accident rate for which we have been recognized is a cornerstone of Madrileña Red de Gas, and should remain so. For this reason, more than 25% of the total training budget for safety courses has been allocated this year.

Finally, we have dedicated 10% of the budget to language training, offering our professionals face-to-face training inside and outside the office, training through online platforms and also training via telephone. We have surpassed 1,200 classroom hours of face-to-face training, delivered two days a week throughout the year.

3.5INTEGRATED MANAGEMENT SYSTEM

During this 2018 financial year, our comprehensive risk management policy has been highlighted by the total integration of the LPG business. We have positively implemented the internal regulations on prevention, the management of quality legal and environmental requirements related to the dismantling of plants, and the consolidation of the plan to improve safety conditions at LPG plants, as well as the monitoring of the aspects of quality, environment and prevention in the development of the conversion projects and the maintenance of the supervision project of the contractor companies related to the LPG business.

On the other hand, we have continued with the project of adapting the management system for prevention, environment and quality to ISO 45001:2018, ISO 14001:2015 and ISO 9001:2015 standards. The implementation of the new documentation repository specifically for the integrated management system and, in a very special way, for the databases of the different projects managed from here, should also be highlighted.

Another of the main activities carried out during the current financial year has been the improvement of the criteria for reviewing contracts, in which new service level agreements have been incorporated for the management of prevention and the environment. The personal data protection clauses have been revised in depth in order that they adapt to the new regulations on the protection of personal data. We have also perfected the identification of legal requirements, differentiating by areas of activity, environment, industrial safety and occupational risk prevention.

3.6SAFETY AND RISK PREVENTION

Good performance in occupational risk prevention involves avoiding or minimizing the causes of accidents or occupational diseases in the workplace, which reverts to a safe job well done.

This commitment to preventive culture is reflected in the “Prevention Plan”. We have implemented a policy for serious accident prevention involving dangerous substances (R. D. 840/2015 – Seveso III). The management criteria to be applied in these cases are detailed in the “Safety management manual for serious accidents prevention” and in the other procedures.

In this sense, the most significant actions carried out in 2018 have materialized in the publication and dissemination of the internal emergency plans, after documentary verification of the approved inspection body and the subsequent implementation thereof, through the provision of training and undertaking of simulations. The internal regulatory audit for the serious accident prevention and the regulatory inspections of article 21 of R. D. 840/2015, performed by an approved inspection body, have also been carried out for all assets affected, in addition to the mandatory document review of the management system. Emergency drills have also been carried out to in order verify the suitability of the means and resources available.

Similarly, the LPG business has required various actions. Amongst the most relevant is the implementation of self-protection plans in 35 LPG plants affected by R. D. 393/2007, with storage capacities between 30 and 50 tons. Emergency drills have also been carried out with the active participation of the maintenance companies’ personnel and the first explosion protection documents of the LPG plants have been published and distributed. Amongst others, the installations affected by R. D. 840/2015 – Seveso III, with storage capacities of more than 50 tons, as well as the plants where the low voltage electro-technical regulation approved inspection body has carried out the respective inspections, may be highlighted.

The plan for the improvement of safety conditions in LPG plants has also been completed. This will include the installation of SCADA-type remote management systems and video surveillance cameras, fencing improvements, etc.

Madrileña Red de Gas has remained committed to the “Bonus” system established by R. D. 404/2010 for a further year, obtaining a reduction in contributions for professional contingencies through the reduction and prevention of work accidents.

The progressive reduction of the number of accidents at work is a priority objective and, for the second time, there has been a period of twelve consecutive months without non-in itinere accidents causing sick leave.

In relation to the Carriage of Dangerous Goods by Road (ADR), the safety adviser has made the respective annual visits to the LNG and LPG plants. The preventive and/or corrective measures that we must adopt have been extracted from their reports. In addition, the designations of the ADR managers for the casting processes have been regularized recurrently; the mandatory annual report is sent to the Ministry of Transport.

In addition, MRG has prepared and published a new internal standard «PRL-833 Management of safety in the carriage of dangerous goods by road», and revised the «PRL-829 Work permits» internal regulation in order to facilitate the identification of the activities in LNG and LPG plants in which a work permit is required.

Our policy of occupational risk prevention includes the training of workers in safety and risk prevention. In this sense, a total of 1,098 teaching hours have been delivered to a group of 69 workers, with a ratio of eight hours of prevention training per employee per year.

Similarly, 12 emergency drills have been carried out in LPG plants. Based on the information obtained in these drills, opportunities for improvement have been identified, as well as preventive and corrective measures.

On the other hand, the monitoring of documentation management has increased to 151 contractors and subcontractors and to 1,110 workers; the volume subject to supervision is greater than 10,200 documents.

In 2018, MRG has continued to implement documentary exchange actions with new contracts, and the identification of the parameters and documentary requirements that are subject to supervision has been reviewed, such as those related to jobs with electrical hazards. In this sense, and in view of the significant increase in subcontracting, a large number of validation processes have been carried out on the documentation of occupational risk prevention for subcontractors.

These documentary controls are completed through direct supervision in the field, which was already started in previous years, through which the effective application of a large number of preventive measures and the documentation provided are checked in order for them to be correct. The result of these visits to supervise activity is communicated to the contractors for their knowledge and implementation of improvements. In a complementary manner, periodic follow-up meetings are held with the supervisors in the field in order to promote the usual dialogue with the prevention technicians of the main contractors and establish effective communication channels.

In this financial year, we undertook about 235 operational monitoring visits, most of them aimed at processes related to the LPG business, emergency care and other processes in the areas of network operations, customer operations and expansion.

Additionally, in adherence to our policy of providing information on occupational risk prevention to interested parties, we have continued to improve the content available in our prevention information channel, enabling access to both our employees and the main contractors. This is how access to updated editions of occupational risk prevention information is guaranteed.

For activities that involve the execution of construction works, periodic monitoring of the health and safety managers’ activity is carried out. In order to improve the monitoring and supervision of the documentary requirements, we have launched technological initiatives in various collaborative environments where the parties involved can monitor project development. This initiative has revealed the high complexity involved in implementing documentation monitoring.

In the area of decommissioning the works of the LPG plants, the drawing up of plans for the hoisting of tanks and for specific tasks related to asbestos risk has been required.

Regarding risk prevention in activities with the potential presence of explosive atmospheres (ATEX), MRG has advised on the application of these policies to RMS (Regulation and metering stations) and LPG plants, and also regarding electrical inspections in ATEX-classified areas.

Also, through the approved inspection body, we have undertaken the mandatory five–year inspection visits to the LPG plants, in accordance with the low voltage electro-technical regulation.

Finally, periodic medical examination campaigns focused on different groups to cover a large number of workers have continued. To these must be added the prevention campaigns against specific illnesses (prevention of colon cancer, prostate, etc.).