REN Redes Energeticas Nacionais SGPS S A : ESG Results 2023

SUSTAINABILITY OVERVIEW 2023

COMMITMENT

IN ACTION

SUSTAINABILITY HIGHLIGHTS

MESSAGE FROM THE CHAIRMAN

At REN, we are committed to drive change, enable positive impact and create value to all stakeholders.

In 2023, the company made significant advances in sustainability by:

• Successfully enhancing the renewable energy production, incorporating substantial new capacities in hydro, wind, and solar energy. This effort led to the setting of multiple national records for renewable energy output;
• Overcoming severe climate challenges thanks to robust infrastructure and preparedness, ensuring reliable energy delivery;
• Remaining committed to sustainable investments and operational efficiency, despite high taxes affecting financial flexibility;
• Engaging stakeholders to refine its sustainability strategy, aligning with the Sustainable Development Goals and addressing climate change challenges, emphasizing its dedication to sustainable and responsible business practices. This approach highlights the importance of adaptability and stakeholder engagement in advancing sustainability goals; and
• We are adhering to ever-more stringent non-financial reporting directives and have seen our short-term emission reduction targets approved by the Science-based Target Initiative.

Rodrigo Costa

OUR YEAR

JAN

EMPLOYMENT,

EQUALITY AND

SUSTAINABILITY

Joined the pact to promote youth employment.

Recognized in the Bloomberg

Gender-Equality Index.

Green financing of

150 million euros.

APR

FIRST

INTEGRATED

REPORT

Publication of the first integrated Report,

awarded with the gold medal prize at the the Davey Awards.

MAR

NETWORK TRANSFORMATION AND ESG EXCELLENCE

REN and three partners sign an agreement to drive the transformation of the gas network to hydrogen.

MSCI ESG rating upgraded from "A" to "AAA".

MAY

RECOGNITION, INNOVATION AND PROXIMITY

Gold Medal from the League of Portuguese Firefighters.

1st self-consumption plant installed at the Sines LNG Terminal.

Stakeholder consultation and

materiality analysis.

AUG

INFORMATION

SECURITY

Certification of the information security management system in

accordance with ISO 27001.

JUL

ENVIRONMENT

Charter of commitment to biodiversity.

For the first time, solar energy

production reached 10% of electricity consumption in a single month.

JUN

DIGITAL PRESENCE

AND RECOGNITION

Launch of the new corporate website.

Auctions of guarantees of origin achieve record annual revenue.

REN in the top 10 places in the

Brand Finance "Value of Sustainability Perception".

SEP

MEETINGS AND

TRANSFORMATIVE

COALITIONS

First event "Encontros com Futuro" (Meetings with a Future),

in partnership with the Público newspaper.

REN is a founding member of the Med OCEaN the Offshore Coalition for Energy and Nature in the Mediterranean.

OCT

SUSTAINABLE

EXCELLENCE

Certification of Portgás asset

management system in accordance with ISO 55001.

"Wellbeing Award" bestwowed by Workwell.

Transemel wins bid to build and operate two new substations and a power line in southern Chile.

Wind energy with record supply of 69% of electricity consumption

in mainland Portugal.

DEC

COMMITMENT

Review of REN´s approach to sustainability.

Circular economy strategy.

Approval of emissions reduction targets by 2030 by the Science Based Target Initiative.

OGMP 2.0 "Gold Standard" Award for continuous commitment to reduce methane emissions.

Signed onto the anti-corruption call to action of the United Nations Global Compact initiative.

Record production of electricity from renewable energy sources (31.2 Twh).

NOV

RENEWABLE ENERGY

PRODUCTION RECORD

Mainland Portugal reaches a record of 149 consecutive hours of renewable energy production, exceeding industrial and residential consumption throughout the country.

ACCELERATING OUR SUSTAINABILITY COMMITMENT

PROGRESS TOWARDS OUR TARGETS

Environmental		Social

1/3 of women in 1st line	33% in 2023
management positions by 2030

-55%1

CO2 emissions

by 20301

-45% in 2023

Governance

Increasing ESG weight in managers'

performance metrics

Achieve carbon
neutrality by 2040	On track

100% of new bond emissions to be green

1 Baseline 2019; Target updated from 50 to 55,3% following the committed submitted and approved by the Science Based Target initiative.

SUSTAINABILITY PERFORMANCE AT A GLANCE

Environment

Social

Governance

4,322,497		72,273		65%
Energy consumption (GJ)		GHG emissions (S3; tCO2eq)		Revenues aligned	1 pp
2022: 3,646,260	676,237 (19%)	2022: 84,343	-12,070(-14%)	with EU Taxonomy
141,916				2022: 64%
	2,0		83%
GHG emissions		Intensity of GHG		Capex aligned
(S1 & S2; tCO2eq)		emissions (tCO2/GWh)		with EU Taxonomy
2022: 165,475	-23,559(-14%)	2022: 2.1	-0,16(-7%)	2022: 78%	5 pp
33%		74%		684 k€
Women in		Employees with flexible		Investment in the
management positions		working schedule		community
2022: 29%	4 pp	2022: 73%	1 pp	2022: 323 k€	374 k€ (107%)
47%		33%		15%
Board independence		Women on the Board		ESG linked to
2022: 43%	4 pp	2022: 36%	-3 pp	compensation for the	0 pp
				Executive Committee

2022: 15%

OPERATIONAL HIGHLIGHTS

Electricity

Gas

Transportation

Gas

Distribution

50.7 TWh		2.26%		9,409 km
Consumption		Energy transmission losses		Line length
2022: 50.4 TWh	0.3 TWh (0.6%)	2022: 1.83%	0.4 pp	2022: 9,424 km	-15 km (-0.2%)
60.6%		0.39 min*		98.4%
Renewables in			Combined
	Average interruption time
consumption supply			availability rate
11.3 pp	2022: 0.08 min	0.31 min	-0.3 pp
2022: 49.3%	2022: 98.7%
49.0 TWh		100.0%		1,375 km
Consumption	-12.8 TWh (-20.7%)	Combined availability rate	0.0 pp	Line length
2022: 61.8 TWh	2022: 100.0%	2022: 1,375 km	0 km (0.0%)
5.7 TWh		98.9%		6,485 km
Gas distributed		Emergency situations with		Line length
2022: 6.0 TWh	-0.3 TWh (-5%)	response time up to 60 min	0.2 pp	2022: 6,316 km	169 km (2.7%)
	2022: 98.7%

• Excludes interruptions by fortuitous of force majeure and exceptional events.

ENVIRONMENTAL HIGHLIGHTS

	INDICATOR	UNIT	2023	2022	YoY
	Greenhouse gas (GHG) emissions
	Scope 1	tCO2eq	29 437	32 104	-8%
	Scope 2	tCO2eq	112 479	133 371	-16%
	Scope 3	tCO2eq	72 273	84 343	-14%
	Total (scope 1, 2 and 3)	tCO2eq	214 189	249 818	-14%
	Intensity of scope 1 and 2 emissions	tCO2/ GWh	1,30	1,41	-7%
	Intensity of scope 1, 2 and 3 emissions	tCO2/ GWh	1,97	2,13	-7%
	Non GHG emissions
	Total	kg	53 014	50 915	4%
	Water management
	Total water withdrawal	m3	102 678	109 762	-6%
	Sea water withdrawal (returned in its entirety)	m3	111 062 444	127 935 431	-13%
	Waste management
	Total waste generated	t	3 377	5 236	-36%
	Total waste recovered	%	100	98	2 pp
	Certification
	Companies certified with ISO 14001	%	98	98	-
	(in relation to the number of employees)

Approval of near-term targets by the SBTi

REN has elevated its commitment to reducing greenhouse gas (GHG) emissions. They aim for a 55.3% reduction in scope 1 and 2 CO2 emissions by 2030 from 2019 levels, an improvement over the prior target of a 50% reduction. This target is in line with the Paris Agreement's ambitious 1.5°C scenario. Additionally, REN plans to cut indirect scope 3 emissions by 25% and scope 3 category C.11 emissions by 42% by 2030, using 2021 as the reference year

Circular economy strategy

We've established a circular economy strategy with a focus on carbon neutrality, encompassing circular purchasing, asset management, natural capital management, circularity monitoring, and education

ENVIRONMENTAL HIGHLIGHTS

EU ENVIRONMENTAL TAXONOMY

BUSINESS VOLUME	CAPEX	OPEX
	15%	21%
	2%
	25%

	1%	29%
34%
36%
1%

65%	64%	83%	78%	71%	75%
2023	2022	2023	2022	2023	2022
Aligned proportion	Ineligible proportion		Eligible and non-aligned proportion

Biodiversity and natural capital

The company established a biodiversity strategy with four key action areas to better incorporate biodiversity in its operations. These areas include mitigating and monitoring biodiversity impacts, promoting and restoring biodiversity, engaging in research and innovation, and focusing on communication and knowledge sharing

Also, REN made new commitments for the 2023- 2025 period under act4nature Portugal.

Decarbonization

REN has a phased programme to install photovoltaic and thermal self consumption power units (UPAC), both in electricity as well as gas infrastructure. In 2023, important projects were completed for the installation of photovoltaic UPAC and thermal solar in three GRMS, that resulted in the installation of 1.5 MW of installed power.

SOCIAL HIGHLIGHTS

	INDICATOR	UNIT	2023	2022	YoY
	Employment
	Employees	No	748	719	4%
	Female employees	%	25.1	25.3	-0.2 pp
	Gender pay gap	%	-1.81	-1.70	6%
	Internal recruitment rate	%	44.0	37.5	6.5 pp
	Employee turnover	%	6.9	6.9	-
	Absenteeism rate	%	2.0	2.1	-0.1 pp
	Training
	Total training hours	No	37 726	36 738	3%
	Average number of training hours	No	51	52	-2%
	Employees with training	%	100	100	-
	Health and safety
	Non-fatal accidents with lost days REN	No	2	2	-
	Non-fatal accidents with lost days CSP1	No	24	14	71%
	Fatal work-related accidents REN	No	0	0	-
	Fatal work-related accidents CSP1	No	0	0	-

1 CSP - contractors and service providers.

Evolution of the organization model

2023 was marked by progress toward a more robust organizational model able to meet the challenges posed by the rapid energy transition and decarbonization. This progress included the short and medium-term succession strategy, the streamlining of our talent capture and management programmes, as well as the reformulation of our training and professional development model. The main goal was to establish solid new foundations to master essential and emerging skills in the industry.

SOCIAL HIGHLIGHTS

	INDICATOR	UNIT	2023	2022	YoY
	Health and safety
	Accident frequency index REN	No	1.6	1.6	-
	Accident frequency index CSP1	No	7.6	5.1	49%
	Accident severity index REN	No	96.7	96.5	0.2%
	Accident severity index CSP1	No	398.7	282.3	41%
	Certification
	Companies certified with ISO 45001	%	98	98	-
	(in relation to the number of employees)
	Community
	Community investment	k€	670	323	107%
	Vehicles donated	No	7	16	-56%
	REN volunteers	No	254	86	195%
	Volunteering hours	No	1,525	881	74%

1 CSP - contractors and service providers.

Safety culture

In 2023 we continued to pursue our safety culture programme, based on the slogan "Everyone's safety is everyone's responsibility", with the goal of reducing the risk of accidents and preventing the occurrence of near-accidents, accidents and occupational diseases.

Well-being

REN's well-being programme (NÓS programme) was recognized in 2023 with the Well-being Award from Workwell, in the category of companies with 251 to 1,000 employees.