CORPORATE SOCIAL RESPONSIBILITY REPORT 2012 - Inima RSC/CORPORATE SOCIAL...It is most satisfying for...

Headquarters: Quintanavides 17, Edif. 3, 3ª Planta, 28050 Madrid, Spain / Tel: +34 910 505 250 / http://www.inima.es

CORPORATE SOCIAL RESPONSIBILITY REPORT 2012

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INDEX

4 - Letter from the General Manager

6 - Who we are

16 - Structure and organization

22 - Vision and Values

26 - Managing sustainability at GS Inima

34 - Great innovation 36 - Sustainability of the water cycle, the basis of GS Inima’s business 40 - Hydraulic infrastructure, key to the management of climate risks 42 - Generating competitive advantages through environmental commitment 54 - Green innovation, a differentiating value

60 - Great challenge: 62 - Sustainable growth that generates economic valor 64 - GS Inima’s risk management model 66- Maximum customer satisfaction: basic goal

68 - Great partnership 70 - Shared growth in the supply chain 73 - Towards an honest and transparent business model 74 - A responsible company in the communities where it operates 80 - Creating a safe workplace 84 - Developing a team for a sustainable future

92 - About this Report

96 - Annex I – Index of GRI content

106 - Annex II – GRI Application Level

Letter from the General Manager

It is most satisfying for me to be able to present GS Inima Environment’s first Corporate Social Responsibility Report, which signifies a major milestone for us in a year that has witnessed far-reaching changes.

2012 has also been especially important for us due to the acquisition of our company by GS E&C, the leading group in South Korea’s engineering, construction and environmental sector. In this way, GS Inima has become the GS E&C subsidiary specialized in the environmental activities associated with water treatment and the commercial window for its internationalization outside of Asia.

This new reality presents itself as a great opportunity for us. Belonging to a global group, with a sound organizational and financial structure, will enable us to become a leading international company in the environment sector, with a capacity for growth in emerging markets.

At GS Inima Environment, we are aware of the need to adapt our strategy, not only to the internal changes that have taken place in our company, but also to an environment and a society in continuing evolution. For this reason, we are focusing our efforts on the international projection of our organization. At the same time, we seek diversification in the services we provide, wagering on new environmental businesses with high added value, such as solid waste management integrated water cycle management or the development of renewable energies.

We feel certain that this new situation, despite posing a great challenge for us, will enable us to grow stronger and to use the opportunities that these changes offer us as a lever for increasing the confidence of our stakeholders and, in the end, for enhancing improve reputation. Therefore, at GS Inima Environment we strive day after day to move one more step ahead in our business responsibilities but also in those responsibilities of an ethical, environmental and social nature.

Our wager on corporate social responsibility is reflected in the commitments acquired and the most significant initiatives carried out during 2012 in social and environmental terms.

On the environmental plane, we strive to unite technology and the protection of the environment. We seek to achieve a sustainable development based on technological innovation driving a low carbon, environmentally friendly model. In this aspect, the design of the Vigo Wastewater Treatment Plant, using the most innovative technologies, has succeeded in reducing environmental impact, making it possible to minimize electricity consumption and the production of water treatment residues.

At the same time, in the context of social issues, we understand that, in the communities where we operate, we should make a significant effort in awareness-raising and education on the relevance of water in society, as well as on its proper use and management. In this regard, the Ribeirão Preto Wastewater Treatment Plant in Brazil receives visits by educational institutions in the framework of the Health Clean Water for All program, having attended to more than 58,000 school children since its implementation.

This commitment to social responsibility is also reflected in our workers, our most valuable capital. Our employees embrace the importance of being committed to our parent company, proud of belonging to it, and understand the personal and professional enrichment that this process of change is signifying for all of us. Moreover, our employees value the fact that this will bring with it fresh opportunities for business, for expansion, for learning and for cultural exchange.

Based on these premises, we are building our corporate social responsibility management model around three major lines of action: the continuing pursuit of

excellence in management, internationalization and the entry into new markets with the use of R&D as a key springboard for becoming leaders, on a worldwide scale, in environmental services.

To underpin these ethical, environmental and social commitments, we are concentrated on the development of a Corporate Responsibility Master Plan, through which the company’s own marks of identity in this area will be defined. The main goal of the Master Plan is to formalize our commitments and immediate targets in the context of Corporate Social Responsibility, with a view to strengthening the capacities necessary for addressing the challenges and opportunities ahead.

While the Master Plan is being formalized, we have made an effort to give recognition to the activities carried out to date and to publish this document. I invite you to read our first Corporate Responsibility Report, which I hope will be of useful to know with our performance and the commitments we have acquired in this area.

José Antonio MembielaGENERAL MANAGER

GS Inima Environment, S.A.

Letter from tHe GenerAL mAnAGer / 5

Who we are

Process Building. Alicante II SWRO. (Alicante, Spain)

GS Inima, a pioneer in the water sector with the construction of the first desalination plant in the world, began to operate as a company specialized in water treatment in 1955. Today, it is the company with the longest track record in reverse osmosis desalination in Spain, and one of the few in the world with references in desalination plants with a production capacity equal to or greater than 200,000 m³/day.

In 1968, the company commenced the construction of the first desalination plant in the world in Cape Verde (Africa), and one year later did so in Fuerteventura (Spain). However, it was not until thirty years later, in 1997, when it began its true international expansion with its entry into the Chilean market and, later, in Brazil. During those years, the company led the construction of the largest desalination plant in Europe in Carboneras (Spain) and in Latin America in Antofagasta (Chile). That decade of expansion culminated in the finalization of the construction in 2007 of Los Cabos, the first desalination plant to produce water for human consumption in Mexico.

After that, GS Inima consolidated its presence abroad with the construction, in 2009, of the first desalination plant for producing drinking water in the United States, in Massachusetts, and at the end of 2011, with the Mostaganem desalination plant (Algeria), the largest in Africa.

On may 31th 2012, the GS E&C group, a world leader in the engineering, construction and environment sector, purchased Inima from the OHL Group, incorporating the company GS Inima Environment S.A. (hereinafter, GS Inima).

GS E&C, founded in 1969, with the name of Lackhee, groups together the activities of the Holding in engineering, construction and environment. GS E&C has a sound financial structure, backed by the most important international rating agencies. In this structure, GS Inima has become consolidated as the GS E&C company specialized in the environmental activities associated with water treatment.

At the present time, GS Inima is specialized in the full range of environmental activities tied to water treatment processes: desalination plants (seawater and brackish water), wastewater treatment plants (urban sewage and industrial wastewater), drinking water purification plants and sludge treatment plants.

GS Inima carries out these activities, both in the public as well as in the private market, by participating in all phases of the project, ranging from the design of a plant, through its technological development, construction and financing, to its maintenance and operation.

• Optimization of all of theaspects of the design of the infrastructure fir the construction of all kinds of plants; desalination (seawater and brackish water,) sewage (urban & industrial wastewater) potable water purification and sludge treatment.

• The provision of innovative solutions its engineering processes based om in.house experience and know how acquied to date.

• Engineering works performed in relation to 100% of the concessions projects granted

• Optimization of the project financial recources.

• Capacity for negotiating and concluding attractive financing term.

• Experience in the implementation of complex financial strauctures.

• Construction & management of projects.

• The construction of all kinds of plants: desalination (seawater and brackish water), sewage treatment (urban and industrial wastewater), drinking water purification and sludge drying.

• Extensive operation and maintenance of the capacities on a world sacale.

• Capacity for providing an Integrate water Treatment service.

• Optimization of the operation of the plants.

• Operation of all of the concessions of projects awarded, as well as of facilities of third parties.

Enginnering Financing Construction Operation &Manintenance

WHo We Are / 9

1955

Foundation

First desalination plant in the world Cape VerdeAfrica

First desalination plant in SpainFuerteventura

Foundation of Sedma(a LaIn subsidiary)

The largest desalination plant in EuropeCarbonerasSpain

First Prize at the IDA Congress for “Technological Innovation inDesign” Los Cabos SWROMexico

1968 1970 1990 1991 1998 1999 2001 2002 2007 2009 2011 2012

Foundation of INI-MedioAmbiente

PrivatizationMerger ofInima & Sedma

Strong focus oninternational expansionAricaChile

The largest desalination plant in Latin AmericaAntofagastaChile

OHL increases its investment in Inimato 100%

First desalination plant for producing drinking water in MexicoPromoaqua

The largest thermal sludge drying plant in SpainMetrofangSpain

First sewage treatment plant with electricity generation(cogeneration by biogas)in Brazil(RibeirãoPreto)

MexicoSpainBrazilAlgeria

First desalination plant for producing drinkingwater in the U.S. AquariaU.S.A

The largest desalination plant in AfricaMostaganemAlgeria

GS E&C purchased Inima from OHL Group incorporating the company GS Inima Environment.GS E&C, leader in South Korea’s engineering and construction sector

EXCLUSIVITY IN SPAIN INVESTMENT ABROAD CONSOLIDATION ABROAD

Acquisition of AmbientExpansion in Brazil

WORLD LEADER IN DESALINATION CONCESSIONS

Who we are

Llanura Manchega DWTP. (Cuenca, Spain)

Process Building. Hialeah BWRO. (Miami, U.S.A.)

WHo We Are / 11

WHo We Are / COnSTRUCTIOn / 10

COnSTRUCTIOn

The design, technological development and construction all belong to the first phase of the projects in which GS Inima takes part. Up to the present time, the company has participated in the construction of:

• 130 urban wastewater treatment plants (WWTP) with a flow of more than 2,500,000 m3/day.

• 7 potable water treatment plants (PWTP) with a capacity of more than 850,000 m3/day.

• 17 plants for the treatment of reused water, tertiary treatments including filtration, microfiltration, Reverse Osmosis, reversible electrodialysis and disinfection with a capacity in excess of 150,000 m3/day.

• 190 industrial wastewater treatment plants (IWWTP) with a flow of more than 290,000 m3/day.

• 26 seawater and brackish water desalination plants with more than 930,000 m3/day.

WORLD-WIDE PROJECT LOCATION

GS Inima OPERATES PLANTS IN ALGERIA, BRAZIL, SPAIN, THE UNITED

STATES, MEXICO AND PORTUGAL

International

Nacional

Total

CONCESSION EPC O&M11

3

14

3

10

13

0

14

14

· Granollers WWTP· Granollers Thermal Drying of Sludge· Crispijana Vitoria-Gasteiz WWTP· Tarazona WWTP· Illescas WWTP· Júcar WWTP· Valmojado WWTP· Oropesa-Cabanes WWTP· Alicante II SWRO· Carboneras SWRO· Poniente Almeriense WWTP· Alacantí Norte WWTP· Vallbona WWTP· Rioja WWTP

SPAIN

· Ponte da Baia WWTP

PORTUGAL

· Mostaganem SWRO· Cap Djinet SWRO

ALGERIA

· Ain M´Lila WWTP

ALGERIA

· Taunton River BWRO

U.S.A

· Hialeah BWRO

U.S.A

· Los Cabos SWRO· Ensenada SWRO

MEXICO

· Ribeirão Preto WWTP· Caiçara WWTP· Campos do Jordäo WWTP· Mogi Mirim WWTP· Sertãozinho WWTP· São José dos Campos WWTP

BRAZIL

· Metrofang Thermal Drying of Sludge· Bioreciclaje de Cádiz MBT· Cádiz-San Fernando WWTP

SPAIN

· Lagares-Vigo WWTP· Algeciras WWTP· Alnazcóllar WWTP· Cebolla WWTP· El Franco WWTP· Lezuza WWTP· Llanura Manchega DWTP· Moncofa SWRO· Torralba WWTP· Torrox WWTP

SPAIN

Granollers WWTP (Barcelona, Spain)

OPeRATIOn AnD MAInTenAnCe

At the present time, GS Inima has more than 50 potable water treatment plants, seawater and brackish water desalination plants, networks of pipes and pumping stations in operation and maintenance with a capacity of more than 1,150,000 m3/day.

The company also operates a Thermal Sludge Drying plant in Spain with a 10 t/day capacity.

COnCeSSIOnS

GS Inima manages 14 plants under concession with a capacity of more than 720,000 m3/day in five countries on three continents. The activities of the company under contracts of this kind include the operation of a plant for the thermal drying of sludge, with a capacity of 125 t/day, while another facility performs operations relating to the management of urban solid wastes with a capacity of 997 t/day.

WHo We Are / 13

WHo We Are / OPeRATIOn AnD MAInTenAnCe / COnCeSSIOnS / 12

China

RussiaUnited Kingdom

ItalyArmenia

Taiwan

Kazakhstan

Turkey

EAUOman

QatarKuwait

Iran

Egypt

VietnamCambodia

IndiaThailand

SingaporeIndonesia

Bahrein

AlgeriaSpain

Poland

Saudi Arabia

Ecuador

USA

Colombia

Canada

ChileBrazil

Mexico

GS Inima Environment DelegationsGS Inima Environment Subsidiaries

GS E&C SubsidiariesGS E&C Delegations

China

RussiaUnited Kingdom

ItalyArmenia

Taiwan

Kazakhstan

Turkey

EAUOman

QatarKuwait

Iran

Egypt

VietnamCambodia

IndiaThailand

SingaporeIndonesia

Bahrein

AlgeriaSpain

Poland

Saudi Arabia

Ecuador

USA

Colombia

Canada

ChileBrazil

Mexico

GS Inima Environment DelegationsGS Inima Environment Subsidiaries

GS E&C SubsidiariesGS E&C Delegations

DELEGATIONS MAPS

WHo We Are / 15

neW BUSIneSS MODeLS

Being a part of GS E&C, a leader in the sector of major engineering and construction works with a financially sound structure, has placed GS Inima in an advantageous position for advancing in the development of new areas of business with growth potential and, in all cases, associated with the environment.

The added value and specialized knowledge in the field of water treatment has made it possible for GS Inima to enjoy a recognized standing in the communities where it has a presence. The strategic trend is to add the activities of management and distribution to complete its services in order to offer an integrated management of the water cycle.

GS E&C’s experience in the incineration of sludge and solid wastes (waste-to-energy) represents an opportunity for developing these services in the markets where GS Inima is already present. The aim is to contribute towards reducing the large number of landfills existing at the present time and to minimize the manual handling of wastes, generating electricity at the same time.

In the long term, GS Inima has its sights set on the development of renewable energy facilities, particularly solar photovoltaic facilities in rural areas of Latin America where communities do not have access to electricity; in addition, GS Inima is interested in the search for synergies that will enable desalination operations in the same places.

GS Inima maintains a strong presence and international activity in the water management sector. At the present time, the company operates plants in Spain, Brazil, Mexico, Algeria, the United States and, more recently, in Portugal. The company also has a presence in the Middle East, Eastern Europe and other Latin American countries, enabling it to maintain a stable business activity in four countries in America and Africa.

This determined focus on internationalization has helped the company to identify new markets with a high potential for development, such as Asia, the Middle East and North Africa, where GS Inima intends to expand its operations, using as leverage the credentials of GS E&C in Asia and the Middle East. These markets are characterized by the existence in the medium term of greater water supply and treatment needs, where technologies such as desalination and tertiary treatments can play a key role in furthering social and economic development.

WHo We Are / neW BUSIneSS MODeLS / 14STRONG INTERNATIONAL PRESENCE. STABLE ACTIVITy IN 6 COUNTRIES ON 3 CONTINENTS.

STRUCTUREAND ORGANIZATION

Degasifying equipment and biofilter. Hialeah BWRO (Miami, U.S.A.)

José Antonio Membiela MartínezDirector and General Manager, GS Inima

In Jung SongDirector COPAINIMA

Myung Soo HuhChairman

Investment Commitee

Investment Commitee

Jung Ho RohDirector

Suk Joo KwonDirector

Sang Ryong WooDirector

Amelia Robles Martín-La BordaSecretary of the Board

GS Inima’s structure and organization

Following the purchase by the GS E&C group (whose head company is GS Engineering & Construction Corporation) on May 31, 2012, the Extraordinary General Shareholders’ Meeting, held as a Universal Meeting on June 20, 2012, unanimously agreed on GS Inima Environment S.A. as the company’s name.

The shareholder structure of GS Inima is comprised mainly by GS E&C with a 79.62% stake and by COPAINIMA, with 20.38%.

The structure and governance of GS Inima has been designed to generate value in the long term for its shareholders and to create an atmosphere of trust with customers, employees and the rest of the company’s stakeholders. In this regard, the members of the Board of Directors work in line with a common customer-focused philosophy and with the capacity to contribute real value to GS Inima. Made up by a highly competent and qualified team, GS Inima’s current Board of Directors was formed in June 2012.

MeMBeRS Of THe BOARD

At the present time the Board is comprised, in addition to its Secretary, by 6 Directors who contribute a diverse and plural composition, with international representation. Four belong to GS Engineering & Construction Corporation (GS Engineering & Construction Corp.), one to COPAINIMA, an investment partner, and finally, the sixth Director is the General Manager of GS Inima.

myung Soo Huh, Chairman

In addition to the office of Chairman of the Board of Directors of GS Inima, Myung Soo Huh has been the President (Standing Director) of GS Engineering & Construction Corp. since June 2013. Myung Soo Huh has pursued his professional career at GS Engineering & Construction Corp. (previously, LG) for more than 20 years. Since joining LG Electronics en 1981, he has held

A BOARD fOCUSeD On effICIenCy AnD InTeGRITy

During 2012, the Board of Directors met on one occasion. The evaluation of the quality and the efficiency of the operation of the Board, of its officers and of their responsibilities, the monitoring and supervision of the company’s strategy and the formulation of indications for the preparation of GS Inima’s first Corporate Social Responsibility Report stood out among the most relevant issues addressed during that meeting.

StruCture And orGAnizAtion / 19

a number of positions of responsibility: Executive Vice President and CFO of LG Engineering & Construction as well as President and CFO, President and COO and President and CEO of GS Engineering & Construction Corp. during several terms of office.

José Antonio membiela martínez, Director and General Manager (CEO) of GS Inima.

Mr. Membiela has a long track record as a Civil Engineer specialized in Hydraulic Works and Infrastructures in various companies in the sector, such as OHL, Dragados or Abengoa. MBA in International Business Management and MBA in General Management from the IESE, he has carried out his professional activity primarily in Spain, the U.S., Brazil and Morocco.

Sang ryong Woo, Director

CGO & President of GS Engineering & Construction Corp., MBA from yonsei University in Korea, he has held a range of positions within GS Engineering & Construction Corp., such as CEO & Executive Vice President & Head of Plant Division, CEO & Senior Executive Vice President & Head of Plant Division, CEO & President of GS Engineering & Construction Corp.

Jung Ho roh, Director

With experience as a mechanical engineer, Jung Ho Roh has pursued his professional career entirely within LG Engineering & Construction Corp, and later at GS Engineering & Construction Corp., holding a number of senior positions in the areas of project management and strategic planning. His current position is Head of Environment Division / Executive Vice President at GS Engineering & Construction Corp.

Suk Joo Kwon, Director

MBA from the University of Washington, Suk Joo Kwon holds the office of Senior VP in Financial Principal,

Auditing, Global Marketing Dept. S-Project TFT of GS Engineering & Construction Corp. Since joining the company, he has held a range of senior positions in different areas, such as General Manager, Strategic Planning Dept., at LG Cable Company and, later, General Manager, Treasury, Accounting, IR Dept., and Vice President, Global Strategy, Development Dept. of GS Engineering & Construction Corp.

in Jung Song, Director

In Jung Song has extensive experience in the Corporate Finance sector, as CEO & Senior Partner in a number of the leading investment banks in South Korea such as IMM or CKD Venture Capital Corporation. He has a broad knowledge of this area, having completed several post-graduate programs at the University of Seoul.

Amelia robles martín-La Borda, Secretary of the Board

From the very start, GS Inima has given particular attention to possible situations of incompatibility and/or conflicts of interest on the part of its Directors.

STEERING COMMITTEE ORGANIZATIONAL CHART

Investment Committee

C.G. Choy / GS E&CS. J. Kwon / GS E&C

J. A. Membiela / GS Inima

GENERAL MANAGER

J. A. Membiela

Manager Concession

L. González

Manager O & M

M. Marcos

ManagerCorporate

Services

A. López

ConstructionDelegation

Spain

L. G. Palomino

ManagerLegal

A. Robles

ManagerR&D

A. Ordóñez

ManagerTechnical

Department

J. Canals

Delegations

Mexico

M. Pariente

Chile

M. Sepúlveda

Brazil

P.R. Oliveira

USA

M. Pariente

Algeria

P.P. Iglesias

Manager CommercialDepartment

Q&E-LRP & CSR

C. Torroja

ManagerEstructured Financing

M. Verde

ManagerAdministration

& HR

J. A. Marchante

ManagerPlanningControl

& Cash Office

C. Roh - GS E&C

CHIEF FINANCIAL OFFICER

S.J. Kwon - GS E&C

CHIEF MARKETING OFFICER

C.G. Choy - GS E&C

Board of Directors

Steering Committee Steering Committee GS E&C Supervisors / Support

Investment Committee

C.G. Choy / GS E&CS. J. Kwon / GS E&C

J. A. Membiela / GS Inima

GENERAL MANAGER

J. A. Membiela

Manager Concession

L. González

Manager O & M

M. Marcos

ManagerCorporate Services

A. López

ConstructionDelegation

Spain

L. G. Palomino

ManagerLegal

A. Robles

ManagerR&D

A. Ordóñez

ManagerTechnical

Department

J. Canals

Delegations

Mexico

M. Pariente

Chile

M. Sepúlveda

Brazil

P.R. Oliveira

USA

M. Pariente

Algeria

P.P. Iglesias

Manager CommercialDepartment

Q&E-LRP & CSR

C. Torroja

ManagerEstructured Financing

M. Verde

ManagerAdministration

& HR

J. A. Marchante

ManagerPlanningControl

& Cash Office

C. Roh - GS E&C

CHIEF FINANCIAL OFFICER

S.J. Kwon - GS E&C

CHIEF MARKETING OFFICER

C.G. Choy - GS E&C

Board of Directors

Steering Committee Steering Committee GS E&C Supervisors / Support

GS Inima COMMITTeeS

In addition, GS Inima has two committees, the Investment Committee and the Steering Committee.

The Investment Committee is made up by the Director and General Manager (CEO) of GS Inima, Jose Antonio Membiela, the Director, Suk Joo Kwon, and the Marketing Manager of GS Engineering & Construction Corp., C.G. Choy. The Committee’s duties include the establishment of the company’s financial strategy in concession projects, as well as the setting of the purchase and acquisition targets. Moreover, it is responsible for defining equity infusions, the design of rates and the company’s debt commitments in those projects which require private investment.

The Steering Committee has a primarily advisory function, being responsible for providing counseling for the company’s strategic decisions. It is also responsible for being familiar with and orienting the policies, objectives and guidelines of GS Inima and for informing its members about them.

All of the company’s departments are represented on this Committee: Commercial Department, Prevention, Corporate Social Responsibility, Quality and Environment, Technical Department, Legal Affairs, Corporate Services Department, Human Resources & Administration, R&D&I Department, Planning & Control and Cash Management Department, Structured Financing Department, Operation and Maintenance, Concessions Department and Construction Delegation. The delegations in the various countries where the company has a presence -Brazil, Mexico, the U.S., Chile and Algeria- are also represented on the Committee.

StruCture And orGAnizAtion 21

StruCture And orGAnizAtion / GS Inima COMMITTeeS / 20STEERING COMMITTEE ORGANIZATIONAL CHART

VISION ANDVALUES

Mogi Mirim WWTP (São Paulo, Brazil)

ViSion And VALueS / 25

GS Inima is broadening its geographical, business sector and human horizons thanks to the synergies of the GS E&C Group, which offers it a panorama of great opportunities to continue growing. In pursuit of the goal of becoming a sustainable company with an international projection, this drive is supported on two basic pillars of success: technological development and the input of an outstanding and highly professional team, recognized in all spheres by the company’s customers.

GS E&C has an ambitious project of international expansion contained in its “2020 Vision” plan, which includes GS Inima. An ambition of a sustainable company based on innovation, excellence and global growth.

These values are transmitted to GS Inima and are the foundation of the company’s management principles: unity, teamwork and dynamism in decisions, always valued as a whole, with decisiveness, speed and effectiveness.

Innovation is a characteristic that GS Inima has always possessed -a symbol of growth. The company has differentiating capacities in desalination technologies and tertiary treatments, and it is the first company in the world to build a desalination plant on a commercial scale.

Since then, GS Inima has carried out major technological developments in the field of desalination that have enabled the plants built by the company to rank as the most efficient in energy terms within its sector, having reduced consumption by more than 20% over the last few years.

The technological improvements developed by GS Inima are incorporated into all of its newly built plants.

Following the incorporation of the company into the GS E&C Group, GS Inima has been working on the search for synergies in terms of innovation with the parent company, with a view to developing initiatives for furthering technology transfers between the two companies.

GS Inima enjoys an excellent reputation among its customers, partners and suppliers. The company’s track record positions it as a leader in the water sector in Spain, underpinning an image of reliability, prestige and innovation. In addition, excellence has been achieved thanks to the inclusion of the most advanced practices and cutting-edge technologies in the plants built and in those developments by GS Inima which are now also applied by other companies in the sector, thereby benefiting all customers, whether the company’s own or those of its competitors.

GS Inima is aware that the associations and collaborations with stakeholders are key elements for making possible the development of its business. It is for this reason that the collaboration between GS E&C and GS Inima is fundamental for international expansion, and the opportunities that this union offers the company should be maximized.

Likewise, the company’s collaboration with academic institutions such as universities and research centers, together with the in-house knowledge gained by the company itself, are key elements for continuing to advance in research and technological development.

ThE COrE valuE Of GS Inima: GrEaT InnOvaTIOn, GrEaT ChallEnGE anD GrEaT ParTnErShIPS

Vision and Values

Managing Sustainability

Alacantí norte WWTP (Alicante, Spain)

Managing sustainability at GS Inima

Definition of GS Inima’s first Sustainability Master Plan.

The first step in this process was to undertake an exercise of diagnosis to identify those aspects of corporate responsibility that are relevant or significant for GS Inima and/or for its stakeholders in its new context. For this analysis, consideration has been given to the aspects evaluated by the principal socially responsible investors, the ethical, environmental and social requirements of the public bidding processes that affect the company, as well as the requirements of the countries where it has a presence, without overlooking the focus of GS E&C with respect to these issues.

A second stage in this exercise consisted of holding a working session with the participation of all of the managers of GS Inima together with the General Manager, in order to reflect on the importance that the aspects identified in the first stage have for the business, as well as how to make progress in the area of sustainability and what is the perception of the company’s current performance. Later, an assessment was made of the degree of criticality of each subject, in order to define the corporate social responsibility strategy for GS Inima on this basis.

GS Inima, as a company specialized in environmental services, is convinced that developing a sustainable management model is the key to entering new markets as well as for maintaining the position held by the company, through sustainable value creation in conjunction with all of its stakeholders.

GS Inima comes from a business group that already understood sustainability as a guarantee of growth. From the very start, the company acquired a firm commitment to transmit its values in the economic, ethical, employment, social and environmental spheres in order to establish a relationship of trust with all of its stakeholders. With its incorporation into GS E&C, GS Inima reinforces its values and marks of identity.

Corporate responsibility is implemented through the company’s commitment to continuing improvement, innovation and anticipation, transparency in its information as well as rational and balanced integration into the environments in which GS Inima operates. Moreover, the company considers its relationship with all of its stakeholders as highly important, with the aim of ensuring that dialog and transparency in its relations with them will become one of the company’s mainstays of action.

From this perspective, GS Inima is building its corporate social responsibility management model around the following lines of action:

The new circumstances have led GS Inima to reformulate its ethical, environmental and social responsibilities, to increase stakeholder confidence and, in the end, to enhance its reputation.

To underpin these ethical, environmental and social commitments, the company’s Management is concentrating on the development of a Corporate Responsibility Master Plan with which it will define the company’s marks of identity in terms of corporate social responsibility. This Master Plan will formalize the commitments and immediate objectives in CSR, with a view to strengthening the skills necessary for addressing the challenges in the longer term.

Prior to the development of the Master Plan, the Management of GS Inima has made an inventory of the activities carried out in the context of sustainability. This has made it possible to arrive at a diagnosis of the impact and degree of progress in these activities, as well to report on them in this first Corporate Social Responsibility Report. This diagnosis is the base line for the development of the lines of action to be determined in the Master Plan.

mAnAGinG SuStAinABiLity At GS inima / 29

The continuing pursuit of excellence in management, by feeding the company’s status as a benchmark in the sector, strengthening its financial results based on a sustainable model, underpinning its relations with its partners by furthering transparency in management and optimizing resources.

The challenge of internationalization and the entry into new markets make the pursuit of sustainability the key to winning the confidence of new partners. The company recognizes the value that sustainability can contribute to building the trust of customers and stakeholders alike.

Advantage should be taken of the company’s recognized track record in R&D&I in order to continue moving ahead on this road and become a leader in environmental services on a world scale.

Strategy – ethical, environmental

and social commitments

CSR MASTER PLAN

MANAGE

LEARN

DIAGNOSISANALYSIS SIGNIFICANT

ISSUES

Marks of identity

COMMUNICATE

SUSTAINABILITYREPORT

Align, articulate messages and contribute

great value

First stage - Diagnosis

PROCESS OF IDENTIFICATION OF SIGNIFICANT ISSUES

Second stage-reflection & priorization

Analysis of ESG criteriabidding terms

Analysis investors

Significant issues

CSR focus os GS E&C

2 - HIGHLY DETERMINATIVE 1 - CRITICAL

Innovation

Environmental management

Health & safety

Good governance, ethics and honestySupply chain management

Relationship with communities

Employees

Risk and crisis management

Water

Climate change & energy

4 - DETERMINATIVE 3 - HIGHLY DETERMINATIVE

mAnAGinG SuStAinABiLity / MeMBeRSHIP In ORGAnIzATIOnS, AWARDS AnD ReCOGnITIOnS / DIALOG WITH STAkeHOLDeRS / 30

Employees

Customers

Governments and regulatory bodies

Suppliers

Local communities

Academic community

Website

Safety and Health Committee

Workers’ Committee

Mailing list

Annual Report

Day-long departmental meetings

Human Resources Contact Person

Corporate Intranet (being developed)

Website

Annual Report

Trade fairs, forums and conferences

Legal Department

Regular meetings

Website

Annual Report


Associations

Website

Regular visits to suppliers

Annual Report

Sector-wide Associations

Website

Annual Report


News in media

Guided tours of facilities

Website

Annual Report

R&D&I Department


Asociaciones

DIALOG WITH STAkeHOLDeRS

The importance of establishing fluid relationships of trust with the company’s stakeholders lies with the attainment of GS Inima’s targets and, to this end, a significant effort has been in identifying them.

Through a range of channels of communication, the company maintains fluid and ongoing dialog with employees, customers and governments, suppliers, the academic community and local communities. Through these channels, stakeholders are identified and answers are provided to their concerns and expectations. Making a joint effort in the achievement of common interests is key to addressing the present and future challenges faced by the organization.

The primary aim of the company’s communication with its stakeholders is to strengthen GS Inima’s relations with all of them, as well as to maintain the commitments acquired with each.

MeMBeRSHIP In ORGAnIzATIOnS, AWARDS AnD ReCOGnITIOnS

GS Inima is strongly committed to the generation of trust and growth shared with its stakeholders through mutual respect, communication and cooperation.

GS Inima belongs to a number of organizations that act as a meeting point among companies in the sector, as an active member and participating in a varied range of activities.

• ADECAGUA: Asociación para la Defensa de la Ca-lidad de las Aguas.

• AEAS: Asociación Española de Abastecimiento de Agua y Saneamiento.

• AEDyR: Asociación Española de Desalinización y Reutilización.

• AFRE: Asociación de Empresas de Tecnología Es-pañola del Agua.

• ATTA: Asociación Tecnológica para el Tratamiento de Agua.

• EDS: European Desalination Society.• IDA: International Distribution Association.• SERCOBE: Asociación Española de Fabricantes de

Bienes de Equipo.• ALADyR: Asociación Latino Americana de Desala-

ción y Reúso del Agua.

GS Inima sponsored the 9th International AEDyR Con-gress 2012, where it gave a paper during the session on Innovation and New Products: “Recovery of Energy from Brine by means of Direct Osmosis. The Sustaina-ble Synergy between Desalination and Purification of Wastewater”, which was awarded the prize for the best paper on desalination at the event.

mAnAGinG SuStAinABiLity / 31

eMPLOyeeSCommitment to training, career development and motivation.

CUSTOMeRSCommitment to maximum satisfaction through the provision of the best services.

GOVeRnMenT AGenCIeS & ReGULATORy BODIeSCommitment to transparent collaboration through industry associations.

SUPPLIeRSCommitment to achieving maximum mutual benefit for generating high levels of confidence.

LOCAL COMMUnITIeSCommitment to the development and growth of the local communities where the company is present.

ACADeMIC COMMUnITyCommitment to the pursuit of value generation through alliances for technological development.

2012 In fIGUReS

mAnAGinG SuStAinABiLity / 2012 In fIGUReS / 32

mAnAGinG SuStAinABiLity / 33

economic dimension

Net profit (thousand of euros) 5,912

Economic value distributed (thousand of euros) 92.95

Total assets (thousand of euros) 355,195

Investments (thousand of euros) 120,984

Capacity of the plants under the operation & maintenance system (m3 /day) 1,199,910

Capacity of the plants under the construction system (m3 /day) 772,714

Investment in R&D (thousand of euros) 1,485

environmental dimension

Materials used (tons) 91,699

Energy consumption (GJ) 2,447,645

Electricity consumption (MWh) 364,686

Water consumption (m3) 8,170,650

Discharges (m3) 186,728,402

Investment in environmental protection (€) 1,784,090

Social dimension

Number of employees 618

Investment in training (€) 109,950

Employees operating under a safety and health system (%) 35%

Own personnel frequency rate (TFR GS Inima) 3.59

Volume of purchases from suppliers in the local community (million of €) 76.5

Turnover (%) 18.6%

Percentage of employees covered by collective agreements (%) 100%

Great innovation

Sustainability of the water cycle, the basis of GS Inima’s business

Hydraulic infrastructure, key to the management of climate risks

Generating competitive advantages through environmental commitment

Green innovation, a differentiating value

Process Building gallery. Alicante II SWRO. (Alicante, Spain)

Mostaganem SWRO Process Building (Algeria)Source: Aqueduct (World Resources Institute)

Physical water risks associated with the availability of water

GreAt innoVAtion / 37

Great Innovation

GS Inima responds to climate change and other environmental problems by changing the way it handles its business, moving towards a preventive and creative model. The company strives to achieve sustainable development based on a technological innovation that will drive a low-carbon, environmentally friendly model.

SUSTAInABILITy Of THe WATeR CyCLe, BASIS Of GS Inima’s BUSIneSS

In July 2010, the United Nations General Assembly explicitly recognized the human right to water and sanitation, reaffirming that clean drinking water and sanitation are essential for the realization of all human rights.

At the present time, one out of every six people lacks potable water and one out of every three has no access to adequate sanitation infrastructures. Factors such as population growth, climate change and geopolitical tensions, among others, will intensify the problems associated with the access to water resources.

In addition, the aging of hydraulic infrastructures in developed countries is lowering efficiency, pointing to the need for significant investment in the integrated management of the water cycle. The restrictions limiting access to financing faced by national and local governments will force them to seek alternatives for financing the services for the integrated management of the water cycle.

“GS Inima jOInS In ThE ChallEnGE Of aChIEvInG EffICIEnCy In ThE uSE Of waTEr rESOurCES anD Of ThE DEvElOPMEnT Of InfraSTruCTurES ThaT wIll GuaranTEE unIvErSal aCCESS TO waTEr”

Country

Spain

Brazil

Algeria

Portugal

Total

Treatment capacity (m3/day)

1,037,181

269,096

16,820

6,837

1,329,934

“GS Inima IS a PIOnEEr In ThE DEvElOPMEnT Of DESalInaTIOn PlanTS, havInG BuIlT ThE fIrST DESalInaTIOn PlanT In SPaIn anD ThE fIrST In laTIn aMErICa”

Mostaganem SWRO (Algeria)


According to a survey made by the World Economic Forum for the preparation of its annual report, “Global Risks 2013”, the executives of major companies place the risks associated with the management of water resources among the main global risks.

This context of a shortage of infrastructures for access to water and the need for attenuating water risks turn the sustainable management of water into an opportunity for companies that supply sustainable water management technologies, such as GS Inima.

GS Inima joins in the challenge of achieving efficiency in the use of water resources and of the development of infrastructures that will guarantee universal access to water, becoming a key agent in the socioeconomic development of the communities where it has a presence and in the preservation of the environment. To this end, the company gears its activities in such a way as to move towards a sustainable model that seeks the conservation of the ecological balance of the natural environment in each and every one of the phases of the integrated water cycle.

Evidence of the company’s commitment to excellence in management can be found in the milestones reached in 2012 in terms of volume of water treated by the sewage, drinking water and reused water treatment plants.

GS Inima’s commitment to the development of infrastructures capable of guaranteeing universal access to water is reflected by its desalination capacity figures and its position as a world leader in reverse osmosis desalination. At the present time, the company has 9 plants with a treatment capacity in excess of 640,000 m3/día.

The population serviced by these seawater and brackish water desalination plants is in excess of 3,000,000 inhabitant equivalents, that is, they would be capable of meeting the annual water consumption needs of the city of Madrid.

GreAt innoVAtion / SUSTAInABILITy Of THe WATeR CyCLe, THe BASIS Of GS Inima’s BUSIneSS / 38

Country

Algeria

Spain

United States

Mexico

Total

Treatment capacity (m3/day)

300,000

215,000

85,354

42,336

642,690

Alicante II SWRO (Alicante, Spain)

“In ThIS COnTExT, waTEr TrEaTMEnT InfraSTruCTurE IS STraTEGIC fOr InCrEaSInG ThE avaIlaBIlITy anD ThE qualITy Of ThIS rESOurCE, aS IT ISInDISPEnSaBlE fOr ThE DEvElOPMEnT Of ThE unCOnvEnTIOnal rESOurCES anD ThE PrESErvaTIOn Of ThE COnvEnTIOnal”

Riesgos hídricos físicos asociados a la disponibilidad del agua


GreAt innoVAtion / HyDRAULIC InfRASTRUCTURe, key TO THe MAnAGeMenT Of CLIMATe RISkS / 40

HyDRAULIC InfRASTRUCTURe, A key fACTOR In THe MAnAGeMenT Of CLIMATe RISkS

Climate change is, certainly, the process of environmental degradation most well known among the population and the one centering the greater part of the efforts of environmental protection organizations.

The main impacts of climate change are the onset of a general trend towards an increase in temperature and a decline in rainfall. It is estimated that an increase of 1º C in temperature could give rise to a drop of between 5%-10% in the availability of water. The arid zones will be particularly affected, such as a part of Spain, North Africa and the Middle East. Coastal areas will also be affected by the impacts of climate change, as the rising sea level will bring with it the salinization of ground water and estuaries, reducing the availability of water for human consumption.

The social and economic impacts derived from the scarcity of water will affect all sectors of the economy to a greater or lesser extent. For example, the agricultural sector, which on a global scale accounts for 71% of the extraction of water and where water is a limiting factor, will be adversely affected by the scarcity of this resource. The energy sector will also have to face a greater demand for electricity with a diminished capacity for generating hydraulic energy, while at the present time 16% of the demand for water comes from this sector.

In addition, the industrial activities with intensive consumption of water will be affected as well by the reduction in the availability of water resources, without overlooking the negative impacts on human health, which could become more vulnerable to diseases associated with the quality of water.

Consequently, sustainable management throughout the water cycle will be indispensable for reducing the growing pressure on the conventional sources, such as surface water (from rivers and lakes) and ground water.

At GS Inima, the sustainable management of water resources is based on its know-how: the application of the latest technologies in terms of sustainability and

the upgrading of the processes of existing plants, to ensure the operation and maintenance of the facilities in line with best industrial and environmental practices. Always considering any short, medium or long-term contractual framework and according to the principle of the most efficient use of a scarce good.

This materializes as a detailed study of each project, in order to select the most adequate processes in each case and establish a sound system for managing the operation of these processes to ensure sustainability in the entire water cycle. The installation of the most recent developments in control software of the SCADA systems, as well as their interrelation with Computer-Assisted Maintenance Management software, deliver excellence in resource management.

In the seawater and brackish water desalination processes, energy optimization and the selection of materials can be considered as the most critical aspects. The incorporation of the most recent developments in energy recovery (pressure exchangers, turbochargers, turbines), effective pre-treatments (Ultra Filtration, Pressure Filters) and the various Reverse Osmosis membrane options in the market (high rejection, low consumption and low soiling), together with the installation of materials with highest resistance to corrosion and mechanically most attractive, are the key features of the new designs in which GS Inima is a world leader. Taking into account predictions for the future with respect to the availability of water as a resource, it is important to consider the desalination of seawater and brackish water as a reliable alternative to the conventional sources of water.

GS Inima has extensive experience in all of the urban sewage treatment systems, from the old and effective conventional ORBAL systems, to the most innovative biological processes based on membrane technology (MBR). The advances in these processes stem from increasing the reliability of the quality parameters required in current regulations, as well as from reducing the wastes generated throughout the treatment process.

To this must be added the efforts for improving energy efficiency and the integration of these facilities into their immediate environment in order to minimize the impacts generated by them.

Urban, agricultural and livestock wastes, chemical and pharmaceutical industries and other kinds of products, all pollute the water of rivers, lakes and aquifers. Water treatment companies have an opportunity to increase their project backlog in this area.

Recycled water, following appropriate treatment, can meet some of the demands for water, particularly for non-household uses.

GS Inima has a number of strengths that will enable it to confront with guarantees the challenges and opportunities of the sector. GS Inima’s position in emerging markets such as Brazil or the Middle East, where a greater potential for growth has been detected, was one of the reasons that awakened the interest of

GS E&C in GS Inima, which will act as a window of internationalization for GS E&C. Moreover, the company’s high prestige in the sector, thanks to more than 50 years of experience, in which it has completed around 600 projects, makes it one of the leading companies in the world in desalination and water and sludge treatment.

Alacantí norte WWTP (Alicante, Spain)



GreAt innoVAtion / GeneRATInG COMPeTITIVe ADVAnTAGeS THROUGH enVIROnMenTAL COMMITMenT / 42

GeneRATInG COMPeTITIVe ADVAnTAGeS THROUGH enVIROnMenTAL COMMITMenT

HIGHLIGHTS In 2012:

• Adaptation of the Quality and Environmental Management System to the new reality.

• Adaptation of the Quality and Environmental Management Plan.

• Setting of environmental targets at work centers.

environmental management as a differentiating element

Respect for the environment is one of the mainstays of GS Inima’s strategy. The company’s goal is to be a global enterprise that responds proactively to the needs of a sustainable management of natural resources.

GS Inima’s commitment goes beyond the prevention and remedying of impacts, compensating for the environmental effects derived from its activities and offering its customers and society as a whole the very best solutions in environmental terms. In this way, the preservation of the immediate environment has become a part of the company’s day-to-day and is an element of competitive differentiation of its businesses.

GS Inima’s ongoing commitment to the protection of the environment was evidenced with the approval in 2012 of the new Quality and Environmental Management Policy by the General Management. The Principles of Action of this Policy are:

• Identification, prevention and minimization of the main environmental impacts that the activities the company carries out could generate. Considering all of the phases of its operations, to minimize the impact they may exert on the environment.

• Identification, compliance with and monitoring of the relevant legal requirements and of the requirements established within the contractual framework by customers, in order to obtain their satisfaction, being capable of identifying their needs and expectations. Ensuring that GS Inima acts at all times with

professionalism, ethics and transparency.

• Establishment of continuing improvement as a prio-rity. In this regard, Management defines the relevant targets and goals, allocating the resources necessary for developing and monitoring them.

The Quality and Environment Committee reviews the Quality and Environmental Management System in place, at least once yearly, to ensure its adequacy and efficiency, as well as its continuing improvement.

Quality and Environment Committee

Corporate Services

Manager

Quality,Environment &ORP Manager

General Manager

Operation &Maintenance

Manager

ConstructionDelegate

Head of Quality,Environment &

ORP Departament

Concesión

3D simulation, Lagares WWTP (Vigo, Spain)




In addition, GS Inima has an Environmental Management System in place which takes the international standard ISO 14001:2004 as its reference. This system is built around the following elements:

• Planning: identification and assessment of environmental aspects.

The performance of GS Inima’s activities in any of their phases (design, construction, operation and maintenance) generates certain environmental impacts that are identified and assessed by the company, for the purpose of minimizing them as far as possible.

In this phase, the work undertaken by the Legal and the Environment Departments is essential, as they are concerned with the identification and verification of compliance with the legal obligations in the environmental context.

Through this, an assessment can be made of the environmental aspects, enabling the setting of targets and goals, in order to mark the lines of action in relation to the significant environmental aspects generated by GS Inima’s operations.

• execution & Control.

Once the significant environmental aspects have been identified and the relevant targets have been set, prior to the start of the activity, an Environmental Surveillance Plan is established for the control and monitoring of the significant aspects, including the planning of the specific measures of action.

• Monitoring and environmental measurement of processes.

Following the establishment of specific control processes, GS Inima monitors their compliance with the evaluation of the results obtained, observing with particular interest any deviations as may occur.

PROJeCT fOR THe exPAnSIOn AnD MODeR-nIzATIOn Of THe LAGAReS WWTP (VIGO, SPAIn)

GS Inima is a participant in the design and construction of the expansion of the Lagares wastewater treatment plant in Vigo, for the treatment of the sewage produced by 663,408 current inhabitants and a future population of 965,000.

For the design of the WWTP, in addition to complying with the legal water quality regulations, particular emphasis has been given to the minimization of environmental impact by reducing the emission of odors and noise and minimizing the visual impact of the facility. For this reason, a large part the facilities have been designed for installation underground.

The project has included the use of the most advanced technologies for the treatment of sewage:

• Water line: lamellar decantation with and without rea-gents, biofiltration with elimination of nitrogen, tertiary treatment with elimination of phosphorus and disinfection by means of ultraviolet rays.

• Review of the Management System by the company’s Management.

For this last phase, GS Inima has developed a systematic process for the Review of the Quality and Environmental Management System by the company’s Management, with a view to ensuring its optimum operation and, if necessary, for setting in motion appropriate actions for its improvement.

In addition, in the face of potential incidents, GS Inima has drawn up a specific Guide for the Management of Emergency Situations Involving an Environmental Impact. Likewise, within the Environmental Management System, the company has a specific methodology for responding to situations of this kind, with the aim of preventing and reducing the impacts associated with them.

• Sludge line: screening, storm water tank, pre-dehydration, thermal hydrolysis, anaerobic digestion, dehydration and thermal drying

• Energy recovery: Cogeneration.

• Odor treatment: Three-stage chemical scrubbing to-wers and automatic control of odor emissions.

• Ventilation and cooling both of the control building as well as industrial buildings.

With this design, GS Inima has succeeded in reducing electricity consumption, minimizing the production of disposal wastes and reducing the environmental impact of the facility.

REVI

EW BY

M

ANAGEMENT PLANNING

MO

NITO

RING & ANALYSIS EXECUTION & CONTRO

L

ENVIRONMENTALMANAGEMENT

SYSTEM

Chemicals

Polyelectrolyte

By-products

Carbon dioxide

Calcium carbonate

Hypochlorite

Sulfuric acid

Glycerin

Other chemicals

Caustic soda

Metabisulfite

Antifouling products

Cement/concrete

Aggregate

Steel

Bitumen and asphalt

Electronic and electrical material

Pipes

Total

Operation & Maintenance business activity including plants under concession.

Consumption of materials in Operation & Maintenance (tons)

16,143

7,867

2,083

2,049

1,137

949

577

500

396

221

191

174

60

13

8

5

4

2

16,235

Algeria

Spain

Brazil

Mexico

Chile

United States

Portugal

Total

Consumption of indirect energy by country (MWh)

215,563

75,820

48,359

20,979

3,276

665

24

364,686



efficiency in the use of resources

GS Inima promotes the incorporation into its operations of methodologies, technologies and best practices that minimize the use of the resources necessary for carrying out its work and the selection of more environmentally friendly materials, such as the use of recycled aggregate in the construction area.

This approach is set in the framework of GS Inima’s environmental commitment, however, it should be noted that the terms and conditions of the bidding processes in which GS Inima participates increasingly include clauses relating to environmental certification, or to the type-approval of the bidder. In the face of this situation, the company develops methodologies, technologies and best practices that minimize the use of the recourses necessary.

The primary materials used by GS Inima in the various areas of its business activity are listed below.

In the company’s construction operations, the material consumed in the largest quantities is aggregate. In this regard, it is important to note that more than 20% of the aggregate purchased is recycled aggregate.

The wager on energy efficiency

One of GS Inima’s main goals in terms of its environmental performance is the improvement of the energy efficiency of its activities, as well as the reduction of emissions in order to minimize their impact on the environment. Some of the company’s daily operations and, particularly the water treatment processes, are intensive in the consumption of direct and indirect energy. For this reason, and in order to reduce energy consumption, GS Inima’s strategy for achieving energy efficiency is supported on two main pillars:

• It has prioritized innovation in energy efficiency as one of its strategic lines in R&D&I. Thanks to this, GS Inima has succeeded in making its desalination plants rank as the most efficient in the sector. Nevertheless, the company continues working to improve the energy efficiency of all of its treatment processes, focusing on R&D&I projects such as the harnessing of the energy of brine and the obtaining of potable water during this process.

• Savings in the use and optimization of energy with the aim of reducing consumption and, consequently, fixed-site and diffuse emissions. Among its targets, GS Inima is concentrating on energy savings in its production facilities and offices.

It should be noted that in 2012, GS Inima consumed 3,288 GJ of gasoline and 29,910 GJ of gasoil, while the consumption figure for natural gas was placed at 2,382,169 GJ, a fuel used solely in the thermal sludge drying plants of WWTPs located in Spain.

The environmental targets defined for construction activities determine actions for reducing the generation of inert waste from construction materials, ranging from minimization to reuse and/or recycling.

Another target of this activity in the context of the use of materials on site is to optimize their use. For this purpose, a systematic control process has been established for the receipt of steel, pavements, concrete and tiles, which prevents the excess consumption of these materials.

The most significant figures for consumption of materials in the operation and maintenance activities refer to chemicals used in the company’s water treatment plants. This is why the reduction of these figures is one of the company’s specific environmental targets

In addition, the processes relating to water purification and desalination are intensive in their consumption of electricity. For this reason, GS Inima is committed to developing water treatment technologies that will achieve maximum energy efficiency and to promoting initiatives for the optimization of electric power.

Implementation of programs and initiatives for improving energy efficiency

GS Inima is committed to energy efficiency in all of the activities it undertakes. This is reflected in the energy savings achieved thanks to the implementation of measures such as:

• Development of plans for the preventive mainte-nance of equipment, including electromechanical equipment and small and large-size construction machinery.

• Establishment of routine process control para-meters in the area of operation and maintenance.

• Existence of control checklists and specific environmental monitoring of energy consumption and definition of targets for the optimization of processes.

Total aggregate

Recycled aggregate

Natural aggregate

Cement/concrete

Bitumen and asphalt

Steel

Prefabricated concrete panels

Iron

Pipes and insulation

FRP pipes

Electronic and electrical material

Total

Construction activity including plants under concession.

Consumption of materials in Construction (tons)

40,952

9,342

31,610

24,982

7,351

1,215

696

157

54

41

15

75,464

Spain

Brazil

Mexico

United States

Portugal

Algeria

Total

Consumption of direct energy by country (GJ)

2,403,253

43,260

501

473

150

8

2,447,645

Direct emissions derived from the consumption of fuel Direct emissions of greenhouse gases not associated with the use of fuel

Direct emissions derived from the consumption of electricity

Estimate of other indirect emissions: Business trips in private vehicles

Estimate of other indirect emissions: Business trips in other means of transport

Emissions of greenhouse gases (tCO2e)

136,084

3,551

86,787

218

42

Biogas: a fuel low in emissions of Co2

The Ribeirâo Preto WWTP in Brazil consumed 21,676 GJ of biogas in 2012. This figure reached a total of 10,602 GJ in the Granollers WWTP in Spain.

The benefits from the consumption of biogas are multiple, as it replaces the use of fossil fuels, thereby reducing the associated emissions, both on the local level as well as in terms of greenhouse gases. Also, biogas contributes the advantage of consuming a local and renewable resource, reducing the dependence on foreign suppliers.

Metrofang Thermal Drying of Sludge. (Barcelona, Spain)



Commitment to the fight against climate change and pollution

In order to adapt to its new reality, GS Inima has made a significant effort in the measurement of CO2 emissions including not only the emissions associated with the consumption of direct and indirect energy but also those associated with the business trips of its staff.

This first exercise in accounting for emissions serves as a starting point for the preparation and implementation of new measures that will give impetus to GS Inima’s commitment to the fight against climate change.

Of the 136,084 tons of CO2 from direct emissions associated with the consumption of fuel, the major part refers to emissions associated with the consumption of natural gas in the thermal drying plants for obtaining energy through cogeneration.

With respect to the emissions not associated with the consumption of fuel, 3,551 tons of CO2 were generated by emissions associated with the process for the treatment and drying of sludge originating from water treatment operations.

Finally, the emissions derived from electricity consumption only produce 86,787 tons of CO2. This is due mainly to the fact that at the centers for the thermal drying of sludge -the facilities that consume the most energy- there are cogeneration installations that supply electricity to the centers themselves.

Discharge to river, Ribeirão Preto WWTP (São Paulo, Brazil)



Rationalization of the use and improvement of the quality of water

In the context of the current trends in the use and degradation of the renewable natural resources, the availability and management of water have become one of the major challenges. GS Inima, aware of this reality, has as its mission the provision of global solutions that will contribute to sustainable management in the water sector.

In this regard, the company is building its rational use and water quality improvement strategy around two aspects: the promotion of innovative solutions for sustainable management (see the chapter on innovation) and the control of consumption and improvement of quality in its facilities.

With respect to the breakdown of the consumption of water by source, the main origin is the wastewater for processing at the Metrofang thermal sludge drying plant.

In the context of the management of water resources, the discharges to masses of water are one of the main impacts of GS Inima’s business activity and, for this reason, the company, makes a significant effort in their control. For this purpose, the quality parameters and volumes of effluents are continually monitored.

Moreover, in line with its Environmental Policy, GS Inima ensures that the relevant legal and regulatory environmental requirements are strictly identified, managed and assessed, ensuring compliance at all times.

The discharges of wastewater generated by the facilities operated by GS Inima include both discharges to the public sewer system as well as to the sea or to rivers and involve a total of 186,728,402 m3.

Considering the differences in terms of environmental impact between the effluents of desalination plants and those of wastewater treatment plants, GS Inima considers that it is important to monitor the discharges of each of these type of facilities separately.

The discharge of wastewater to the public sewer system, associated with the thermal sludge drying facilities and with the construction of desalination, wastewater treatment and drinking water purification plants, totaled 10,207,450 m3.

Wastewater

Water obtained from other sources

Water obtained from wells

Water obtained from the public network

Water obtained from surface water

Total

Consumption of water by source (m3)

7,884,000

175,807

64,594

45,995

254,47

8,170,650

Discharge from the wastewater treatment plants in operation (m3)

90,337,812

6,122

90,343,934

Discharge of wastewater to the sea

Discharge of wastewater to the public sewer system

Total

Discharge from the wastewater treatment plants in operation (m3)

86,173,113

3,905

86,177,018

Discharge of wastewater to the sea & rivers

Discharge of wastewater to the public sewer system

Total

Metrofang Thermal Drying of Sludge. (Barcelona, Spain)



effective waste management

GS Inima makes a significant effort in order to achieve efficient and responsible waste management.

This effort is reflected in the development of two Environmental Guides within the framework of the company’s Environmental Management System: a first Guide for the Management of Non-Hazardous Waste and a second for the Management of Hazardous Waste. These guides establish specific patterns for the identification, storage and management of all kinds of waste.

Also within the scope of its Environmental Management System, GS Inima has defined specific procedures for the Environmental Control, Monitoring and Measurement of its operations, which address the reduction of the significant environmental aspects.

The principal wastes generated in the operations of GS Inima are:

• Dehydrated sludge. Dehydrated sludge. Generated in water treatment operations. Aware of the strong impact of this aspect and moved by its commitment to reduce this waste, GS Inima has undertaken the business of the thermal drying of sludge. At the present time, the company has two plants: one in Granollers with a capacity for 10 tons/day and another in Barcelona with a capacity for 125 tons/day.

• Soil. Generated primarily in construction work. For the purpose of reducing the quantity of soil waste generated, the construction sites make a significant effort in order to recover this waste through reuse and recycling. Specifically, in 2012, 68% of the soil waste generated by construction work was reused or recycled, that is, approximately 18,000 m3.

• Financial effort as a reflection of commitment to the environment

In line with GS Inima’s environmental commitment, the company is making a significant financial effort to protect the environment from a preventive and continuing improvement perspective.

In 2012, the company’s investment expenditure was earmarked primarily to the reduction of the environmental impact in the treatment of waste, representing a figure of 1.8 million euros.

Moreover, it is important to highlight the fact that GS Inima has never been fined as a result of an official investigation, nor has any non-monetary environmental penalty whatsoever been applied to it.

Cogeneration in the thermal drying of sludge

Sludge is a waste generated in the sewage treatment plants. GS Inima searches for new solutions, both for reducing the quantity produced as well as to render its elimination increasingly more sustainable. For this purpose, the company has taken up the option of the thermal drying of sludge for the reduction of the amount of waste already generated and to address the problems posed by the storage of such waste.

In Spain, GS Inima has two plants for the thermal drying of sludge, Metrofang and Granollers, where the dried sludge holds 5% of moisture with the consequent reduction of its volume.

Dehydrated sludge

Soil and aggregate (in m³)

Pre-treatment residues

Grease from degreasing

Sand from de-sanding

Rubble

Timber

Metals

Paper and cardboard

Oil

Other residues

Plastics

Contaminated metal containers

Contaminated plastic containers

Absorbents and wiping cloths

Batteries

Fluorescent tubes

Used oil filters

Laboratory chemicals

Wastes generated, by type of waste (tons)

96,813

26,698

1,915

315

311.7

39.9

38.9

22.0

20.9

15.6

10

7.9

1.6

1.4

1

0.28

0.27

0.20

0.16


GreAt innoVAtion / GReen InnOVATIOn, A DIffeRenTIATInG VALUe / 54

Green innovation, A DIffeRenTIATInG VALUe

Highlights in 2012:

• Approval of the Research, Development and Innovation Policy.

• Certification of the R&D System to the standard UNE 166002:2006.

• Prize to the best paper on desalination in the session on Innovation and New Products at the 9th International AEDyR Congress 2012.

THe WAGeR On InnOVATIOn

GS Inima recognizes the need for developing innovative technologies capable of integrating the demands of society and of taking into account the commitment to the environment and sustainability for future generations.

Green innovation plays a central role for GS Inima, as it serves as a firm basis for achieving sustainable growth.

In this context, GS Inima’s ongoing commitment to innovation has four main objectives:

• Entry into new markets or business areas

Access to fresh business opportunities, connected with the environment, such as the incineration of sludge and waste, the integrated management of the water cycle or the renewable energies, based on having differentiating capabilities and knowledge available in these areas.

• Increased competitiveness on the inter-national level.

GS Inima gives particular emphasis to the development of green technologies as a driver for increasing its competitiveness on the international level. Particularly with a view to winning calls for tenders and international contracts. To do so, having in-house technological know-how available is a key factor.

MAnAGInG InnOVATIOn

The aim of GS Inima in the context of innovation is reflected in its Research, Development and Innovation (R&D) Policy through which the company has acquired the following measurable and assessable commitments:

• To improve the productivity and efficiency of the processes through the development of R&D activities.• To include R&D as a basic principle, establishing an R&D management system based on the standard UNE 166002.• To establish and meet R&D targets.• To put into place the continuing improvement of the process.• To involve and commit the employees.• To motivate the employees, by ensuring proper training that will enable the company to have recourse to qualified personnel.• To ensure that GS Inima’s R&D projects meet the needs of customers, collaborators and the rest of the stakeholders.

For the purpose of adapting the management of

• In search of added value.

Innovation in already established businesses helps to attenuate the problem of the scarcity of water, as well as to create significant added value for shareholders and for the rest of the company’s stakeholders. Under this premise, GS Inima seeks to increase R&D investment in green technologies in order to create synergies with its stakeholders, establishing cooperation arrangements with universities and partnering.

• Reducing environmental impact.

In the framework of its Environmental Management System, GS Inima is prioritizing ongoing innovation in initiatives designed to minimize environmental impacts and the dissemination of its green management among the practices of its suppliers.

The new circumstances have led GS Inima to work on the creation of a specific department that will unite efforts in this area, in such a way as to align them with its business targets. To attain these targets, the company has defined the following lines of work in R&D.

R&D to the new reality of the company, GS Inima has developed an R&D Management System. The aim of this Management System is to carry out a process of consolidation and unification of the initiatives in the area of R&D currently in progress in the various facilities and to design a systematic procedure for the identification and selection of innovative business ideas.

The R&D Management System adheres to the requirements established by the standard: UNE 166002:2006, whose certification has been obtained for the activities of water engineering and technology, water supply, wastewater and desalination technology for the purification of drinking water.

In line with the R&D Management System, a System Handbook has been developed for the purpose of establishing a set of general guidelines, so that it will serve as a permanent reference during its application to all of the R&D activities carried out by the company.

Line

s of

wor

k in

R&

D&

I

Energy efficiency

Wager on the development of innovation for energy efficiency, particularly for the purpose of reducing the cost of energy consumption in the desalination facilities. Despite the fact that the desalination plants built by the company rank among the most efficient in the world in terms of energy use, a high percentage of the operating cost stems from energy consumption.

New environmentally friendly technologies

Entry into new business areas, connected with the environment, such as the incineration of sludge and waste, the integrated management of the water cycle or the renewable energies, calls for differentiating capabilities and knowledge in these areas.

Response to the impacts derived from climate change

Search for innovative solutions that will enable adaptation to the possible effects derived from climate change that could have an impact on the normal operation of the company’s facilities.

Search for synergies with GS E&C

Development of projects and initiatives of great value for all of the company’s stakeholders by taking advantage of the leadership of GS Inima’s parent company, as one of the most advanced companies in South Korea and Asia in terms of innovation.

Pilot Plant for Harnessing the energy of Brine. (Alicante, Spain)




OUTSTAnDInG InITIATIVeS In R&D&I

energy recovery from brine through direct osmosis. the sustainable synergy between desalination and the reuse of wastewater.

In the context of the work performed by GS Inima in the reduction of energy consumption during 2012, mention should be made of an R&D project that addressed the production of hydraulic energy through direct osmosis on the basis of two saline solutions with different concentrations that are made to pass through a module of semi-permeable membranes.

The two fundamental applications of this new process are, on the one hand, the obtaining of energy that will enable the reduction of the energy consumption of the brine-generating plant or the independent production of electricity, while at the same time a potential effluent with less salinity than seawater will be obtained. This potential effluent can again pass through a reverse osmosis rack that will recover as product the water of the diluted flow that had previously passed through the direct osmosis rack, this latter process being where the economic and environmental advantages acquire extraordinary relevance.

Innovation for energy efficiency: optimization of the cleaning of membrane bioreactors

The membrane bioreactors (MBR) constitute a consolidated technology for the biological treatment of urban and industrial wastewater, however, their main drawback is the soiling of the membranes. The cleaning and maintenance of these membranes involve significant energy consumption, making operation more costly.

GS Inima, together with the University of Girona, has developed a system for the automatic control of the MBRs that is intended to optimize their operation and reduce their energy consumption. This software regulates the amount of air supplied for the membrane cleaning process adjusted to the real needs of the process.

In this way, this process is set in the framework of the application of technologies that strengthen sustainable development in its two key facets of economic and environmental development. Its main advantages are a considerable reduction in the production cost of drinking water and, therefore, the final selling price to the consumer; the reduction of energy consumption in an environment of scarcity and rising costs of fossil fuels as is the case today and the reduction of the total investment cost, as the increase in water production is achieved without additional capturing infrastructure or pre-treatment.

This initiative is a clear example of the wager on R&D under criteria of sustainability, which, in addition, has high potential for new markets such as the Middle East or North Africa.

During 2012, the company carried out a project to demonstrate this technology at the WWTP in La Bisbal d’Empordà, which has a capacity of 3,200 m3/day. In this demonstration project, a savings of 58.9 kWh/day was achieved, making it possible to save almost 5,000 euros yearly and to reduce the CO2 emission by 28.1 tons.

The energy savings through the application of this technology, scaling the energy savings of this demonstration project to other facilities of different sizes, could be as follows:

Without MBR 285.6Kwh/d

x0.11€/Kwh 11,466.84€/year

With MBR

Savings

226.7Kwh/d

58.9 Kwh/d

x0.11€/Kwh

Energy savings ratio:0.037 Kwh/m3

9,102.01€/year

2,364.83 €/year


GS Inima, in conjunction with the Geological and Mining Institute of Spain and the University of Almería, has completed a project on Hydrogeological Analogs: “Utilization of natural hydrogeological analogs for the optimization of the seawater capturing processes in desalination plants”. The purpose of this initiative was to study the saturation processes of the wells close to the sea and thereby prevent their saturation during seawater capturing processes.

The company also collaborates with the University of Girona in what has been named the Sludge Project. This research project is centered on the reduction of the generation of biological sludge by means of anoxic -oxic digestion, which would achieve a reduction in the environmental impacts and lower operating costs for WWTPs.

Moreover, a project is being undertaken for the management of red tides in desalination plants, and a cooperation agreement has also been signed for a staff exchange between GS Inima and GS E&C, taking

advantage of the synergies between the two companies.

Partnering

For the performance of GS Inima’s projects, the company feels that partnering with relevant research centers is a key element. At the present time, GS Inima is a member or collaborates with the following initiatives in R&D and sustainability:

• Active participation in the R&D programs within the National Environmental Sciences and Technologies Program organized by the Ministry of Agriculture, Food and Environment.

• Collaboration with a number of universities, parti-cularly the Universities of Girona and Almería.

• Collaboration with research institutes, for example, the Geological and Mining Institute of Spain.


“DurInG ThE 2012 fInanCIal yEar, GS Inima haS InvESTED MOrE Than 1,485,000 EurOS In r&D PrOGraMS”

Sand filters. Cap Djinet SWRO (Algeria)

A sustainable growth that generates economic value

GS Inima’s risk management model

Maximization of customer satisfaction: a fundamental goal

Great challenge

Process and Control Building. Alicante II SWRO (Alicante, Spain)

Llanura Manchega DWTP (Cuenca, Spain)

Great challengeGS Inima seeks to grow by means of the addition of new businesses, broadening the scope of its operations abroad and establishing an advanced management structure.

The development of an integrated program for the control and minimization of risk will contribute towards reinforcing the soundness of its operations.

A SUSTAInABLe GROWTH THAT GeneRATeS eCOnOMIC VALUe

The results obtained in 2012 reflect GS Inima’s commitment to generating value for all of the company’s stakeholders, striving at all times to obtain returns for its shareholders.

These good results are an outcome of that ongoing search for opportunities of internationalization in geographical areas with high growth potential, such as Brazil or North Africa, without overlooking the development of new business areas associated with the environment.

GS Inima’s wager on internationalization and the entry into new business areas is reflected in the volume of investments accounted for in the companies under the financial asset model and by the equity method, made both in 2011 as well as in 2012.

The activities of the company generate direct economic value for GS Inima’s principal stakeholders: for employees, through the payment of wages and salaries; for suppliers, through the payment of the cost of supplies; and to governments, thanks to the payment of taxes.

44

%

%

GreAt CHALLenGe / 63

Methods of Participation

(Thousands of euros) Companies

Cádiz San Fernando, A.I.E.

Partícipes de Biorreciclaje, S.A.

Shariket Miyeh Ras Djinet Spa

Shariket Tahlyat Miyah Mostaganem Spa

Total

2012

970

3,194

7,803

14,554

2011

1,077

3,579

2,587 2,286

4,831

11,773

Investments in Financial Assets

(Thousands of euros) Companies

Aguas de Ensenada, S.A. de C.V.

Ambient Servicos Ambientais de Ribeirao Preto, S.A.

Araucária Saneamento, S.A.

Promoaqua Desalación de los Cabos, S.A. de C.V.

Saneamento do Vale do Paríba, S.A.

Total

2012

726

21,664

4,088

106,430

2011

102

1,959

12,824 12,167

45,461 53,926

12

SESAMM Serviços de Saneamento de Mogi Mirim, S.A. 21,667 18,700

86,866

Economic value distributed (millions of euros)

Personnel expenses

Operating costs

Tax on profits

Economic value distributed (B)

Economic value generated (A)

Economic value retained (A)-(B)

2011

18.52

74.53

2.10

95.15

125.40

30.25

2012

17.60

73.27

2.07

92.95

144.04

51.09

44%

44%

12%

1152009

129.3

2010

138.3

2011

125.4

2012

144.1

120

125

130

135

140

145

150

2.1002009

2,625

2010

2,297

2011

2,499

2012

2,315

2.200

2.300

2.400

2.500

2.600

2.700

02009

18.4

2010

15.5

2011

15.6

2012

21.6

5

10

15

20

25

Sales 2009-2012 (thousand of euros)

Backlog 2009-2012 (thousand of euros)

EBITDA 2009-2012 (thousand of euros)

Results 2012

Operating revenues

Investment

Operating profit

Net profit

(thousand of euros)

144,042

120,984

8,910

5,912

Construction

Operation & Maintenance

Concessions

Origin of the group’s revenues:


GreAt CHALLenGe / GS Inima´s RISk MAnAGeMenT MODeL / 64

GS Inima’s RISk MAnAGeMenT MODeL

Aware of the importance of adequate risk management, regardless of the nature of the risks involved, GS Inima has a process in place for the identification and measurement of risk with the aim of accepting only those risks which, following their analysis, make it possible to maintain the likelihood and impact of occurrence within the established limits of tolerance and to provide reasonable certainty as to the attainment of the company’s strategic targets.

GS Inima’s operations are exposed to a multitude of risks, which the company groups together by kind of risk, as:

• financial. Risks with a direct impact on the company’s financial stability; market risks, credit risk, liquidity risk and interest rate risk in cash flows.

• Legal. Contracts must be drawn up in accordance with the legal resolutions issued by the competent level of government and in line with the requirements determined by the procurement terms and conditions.

• Technical. The performance of the works and the provision of services must conform to the requirements agreed with the customer.

GS Inima’s model for managing the risks to which the company finds itself exposed is defined in such a way as to enable compliance with two fundamental principles:

• Ensure strict compliance with the laws and regu-lations in force applicable to each of the company’s operations.

• Meet the commitments the company acquires with each of its customers and partners.

Selection of partners

GS Inima works hand in hand with its partners and, for this reason, prior to the selection of a possible collaborator, the company makes an analysis of the entity to determine its technical, economic and financial capacities, as well as to identify possible litigation of any kind in which it may be involved.

Responsibilities in risk management

For the purpose of ensuring the control of the risks to which GS Inima is exposed in each of the stages mentioned above, each risk is assigned to a person directly involved in the company’s decision-making processes, who is responsible for that risk.

Therefore, the risks of a legal nature are identified and managed by the Legal Affairs department, the financial risks, by the Structured Financing department, and finally, the technical risks by the Technical Department. Later, the risks identified are brought to the attention of the Concessions, Commercial and Operation & Maintenance Departments, as well as the Regional Delegations (Brazil, the U.S., Mexico and Algeria) and the Construction Delegation, depending on the type of GS Inima activity involved.

All of these areas prepare the information necessary so that, in the last instance, the General Manager will have all of the elements necessary for deciding on whether to participate in a particular call for tenders or not.

The wise selection of a partner with whom to take part in a bidding process is critical for the company and, for this reason, it is essential for the company to maintain fluid and transparent communications that will help build a relationship of trust between the parties.

Analysis of procurement terms and conditions

GS Inima considers it essential to be in a position to meet each and every one of the expectations held by a customer with respect to the company.

In order to guarantee this premise, before GS Inima decides to participate in a bidding process, the Structured Financing and Legal Affairs departments make an exhaustive analysis of the bidding terms and conditions. Among other aspects, an assessment is made of the scope of the work and the implications of possible variations in it, the licenses required, general contract clauses, price and economic compensation, completion dates, liabilities due to the alteration of normal circumstances.

Monitoring all of the phases of projects

Once a contract or concession has been awarded, GS Inima continuously monitors the previously identified risks, through its Management Committees. This follow-up is intended to guarantee compliance with the legislation and regulations applicable in each case and to ensure that the commitments acquired in the procurement terms and conditions are met.

The existence of direct and close communication with customers makes it possible to ensure early identification of any potential risks and to be in a position to set in motion whatever actions as may be necessary for the attenuation of such risks.

RISk MAnAGeMenT MODeL

SELECTION OFPARTNERS

• Analysis of partner.

• Clear and transparent communication.

RISK ASSESSMENT OFTERMS & CONDITIONS

• In-depth analysis of the procurement terms and conditions (identification of possible technical, legal, economic risks, completion dates, liabilities in case of termination or transfer).

AWARD

• Compliance with regulations in force and the procurement terms and conditions.

• Ongoing communication through Management Committees.

monitoring of the quality of the water supplied in Brazil

In the water treatment plants operated under concession in Brazil, GS Inima has assumed the commitment of performing daily, weekly and monthly tests of the quality of the water supplied, as required under the contract terms and conditions.

These tests verify a range of water quality parameters, such as pH, temperature, solids in suspension and other technical parameters. In addition to making daily tests in its own laboratories, weekly and monthly tests are performed in approved external laboratories to ensure compliance with the current regulations on effluents.


GreAt CHALLenGe / MAxIMUM CUSTOMeR SATISfACTIOn: BASIC GOAL / 66

MAxIMUM CUSTOMeR SATISfACTIOn: A fUnDAMenTAL GOAL

GS Inima provides products and services under the strictest quality standards established and the requirements included in standards and regulations.

HiGHLiGHtS in 2012

• Adaptation of the Quality and Environmental Management System to the new context of GS Inima.

• Preparation of customer satisfaction surveys in Spain and Brazil.

Identifying customer needs

As an element of its commitment to excellence in management and to the search for partnerships capable of creating shared value, GS Inima has the responsibility and the obligation of responding to the expectations of its customers, offering at all times solutions that respect the environment and society.

This ongoing commitment to customer satisfaction has been put into practice through the approval by General Management of the Quality and Environmental Management Policy and of the Quality Management and Environmental Management Systems certified to the standards ISO 9001 and ISO 14001.

In its determination to identify customer needs, GS Inima makes a number of channels of communication available to its customers.

It is important to highlight the uniqueness of GS Inima’s business, which is reflected in turn in the particularity of the company’s customers. Working for governments means working for a small number of customers. This circumstance, together with the duration of the projects, has led to a situation where the main channel of communication with customers is dealing directly with them. Even so, GS Inima is moving towards a formal model of communication through the implementation of a complaints and claims channel and the organization of annual satisfaction surveys.

Methods for evaluating satisfaction

GS Inima evaluates the satisfaction of its customers and integrates the feedback received from them into its processes and work methods.

At the present time, the company is working on a common model that will make it possible to measure the degree of customer satisfaction in all of the countries where it operates. The aim is to place the company in a position to be able to evaluate and process the results obtained, thereby enabling the departments responsible for each area to undertake appropriate improvement actions.

In the course of 2012, satisfaction surveys of twelve customers were taken in Spain. Nine referred to operation and maintenance activities, and three to construction.

In these surveys, the customers offered their assessment of the perception they have of GS Inima in several aspects: general quality of the service, human resources, technology, environment and after-sales service, general image of the company and the capacity for customer retention evidenced by GS Inima.

The results obtained show a high degree of customer satisfaction, with an average score of 3.64 over 5 for the operation and maintenance customers, whose perception of the general quality of the services stands out particularly. This aspect was given an average score of 4.22 over 5.

With respect to the construction customers, the assessment was 4.54 over 5. For them, the most outstanding aspect of the service is the general image of the company, where a score of 4.67 over 5 was obtained.

In addition to the satisfaction surveys, GS Inima monitors the performance of its projects by means of a number of status and quality-of-service indicators defined previously in the relevant Quality Plan, where the requirements established by GS Inima and the customer are included.

For services provided under the concession system, the Project Company, in which GS Inima participates, is responsible for the monitoring of the quality of the service offered. The Project Company sends the monitoring indicators established, together with other operating parameters of the work or service, on a regular basis (daily, weekly or monthly).

In the case of construction contracts (EPC), the customer makes additional regular quality controls on site, monitoring the key aspects of the performance of the work (structural materials, fitting-out, etc.).

In the operation and maintenance contracts, the customer defines the key quality parameters and monitors them regularly through the testing of samples performed in approved laboratories.

GS Inima also holds regular meetings for the purpose of evaluating customer satisfaction with the services provided. The final objective of these meetings is to create a fluid and transparent relationship and to enable an ongoing and immediate evaluation of the progress of projects.

The integration of the customer’s opinion is essential for further developing the process for the continuing improvement of the services that GS Inima provides. For this purpose, in addition to a tool enabling the measurement of the degree of customer satisfaction, systems need to be in place for channeling the collection and processing of possible complaints and claims.

The procedure to be followed after a complaint or claim is received is that the complaint or claim must first be examined by the person responsible for the relevant area, to determine whether it is warranted or not. If warranted, the remedial actions necessary are

determined, identifying the persons responsible for implementing them as well as the deadlines to be established in each case.

Achieving direct communication with customers is indispensable, with a view to optimizing transparency with respect to the decisions made and the actions progressively taken.

In line with GS Inima’s commitment to the search for partnerships that create shared value, the company trusts in the empowerment of its customers as a key factor for achieving excellence in its business activities.

For this reason, GS Inima organizes programs for the training of potential and future customers. Accordingly, during 2012, training courses were held for members of local and regional governments in Peru and Brazil on the importance of hydraulic infrastructure for the socioeconomic development of regions, as well as on the relevance of the proper maintenance of the infrastructure and of the sustainable management of water resources.

“In GS Inima’s COMMITMEnT TO ExCEllEnCE In ManaGEMEnT anD TO ThE SEarCh fOr ParTnErShIPS CaPaBlE Of CrEaTInG SharED valuE, ThE COMPany haS ThE rESPOnSIBIlITy Of MEETInG ThE nEEDS Of CuSTOMErS anD Of OffErInG SOluTIOnS ThaT rESPECT ThE EnvIrOnMEnT anD SOCIETy”

School children participating in the “Health Clean Water for All program”, Ribeirão Preto WWTP (São Paulo, Brazil)

Great partnership

Shared growth in the supply chain

Towards an honest and transparent business model

A responsible company in the communities where it operates

Creating a safe workplace

Developing a team for a sustainable future

Biological reactors, Granollers WWTP (Barcelona, Spain)


GreAt PArtnerSHiP / 71

SHAReD GROWTH In THe SUPPLy CHAIn

One of the keys to the success of companies lies in their capacity to create value with those with whom they associate themselves. Accordingly, for GS Inima, cooperation with its suppliers in a number of aspects, such as the quality of the service, access to the best technological solutions or the attenuation of price volatility, enables the company to achieve the competitiveness required by the environment in which it operates.

HIGHLIGHTS 2012

• Inclusion in GS Inima’s standard contracts of clauses on human rights, the environment and occupational safety and health.

• Replacement of documentation on paper, required for the type-approval of suppliers, by a digital medium, with the ensuing reduction in consumption.

A determining factor for guaranteeing the excellence

of the products and services offered to customers

is the maintaining of lasting, stable and trustworthy

business relationships with the company’s suppliers.

The characteristics of GS Inima’s businesses and

the equipment necessary for carrying out the range

of operations involved would require a high level of

technical expertise. For this reason, it is essential for

GS Inima’s focus on the management of suppliers to

include a search for value in the various phases of the

operating processes, in order to arrive at a selection of

reliable and solvent partners with a response capacity.

Approximately 90% of GS Inima’s purchases are

made from companies highly specialized in the sector,

with which the company maintains a long-standing

relationship of collaboration.

GS Inima maintains a strong commitment to the creation of value in the communities where the company carries out its business activity. The company feels that the

integration of local suppliers into its own procurement process facilitates the availability of supplies and services to a large extent, ensuring greater flexibility and response times adapted to its needs.

In 2012, GS Inima placed purchase orders for materials and services, worth 81.73 million euros, with a total of 1,737 suppliers. 93.6% of the total volume of purchases was contracted with local suppliers from Spain, Brazil, Mexico, the U.S. and Algeria.

Sustainable management of the supply chain

Supplier selection processes

GS Inima has a system for the selection of suppliers that makes it possible to guarantee a fair and transparent tendering process.

In the process for the selection of a supplier, GS Inima requires compliance with the technical specifications of the item of equipment or the material to be purchased, together with recognized experience in the sector.

The primary supplies needed for the company’s activities include:

• Materials for the performance of civil works.• Materials for water pipes, including the services for their shaping and assembly.

• Electromechanical equipment elements and ser-vices for their assembly and placement on site.• Spares and the contracting of the maintenance of major equipment.• Chemicals for water treatment and the performance of laboratory tests.• Contracting of complementary services such as external inspections or support engineering.• Contracting of logistics services.

In addition, the selection of suppliers takes place under the most stringent requirements of quality, environment and occupational safety.

For this purpose, the company has developed a General Procedure for Procurement Management and Type-Approval, Monitoring and Supplier Evaluation. This procedure has a number of levels of control which a supplier must pass in order to be contracted.

Also, the management of some orders and supplies is not centralized, but rather depends on the Delegates of each country where GS Inima has a presence. In these

cases, after the receipt of tenders at each work center, if considered necessary, a comparison is requested from the corporate Procurement Department, which issues a recommendation for the award.

In the case of purchases and supplies for the Temporary Joint Ventures (UTEs) that GS Inima creates with external partners, assurances cannot be given that in all cases procurement will be made in accordance with the requirements established by the company, as GS Inima does not hold the operating control of such UTEs. Nevertheless, in these cases procurement will always take place in accordance with the relevant legislation and quality, environment and safety requirements.

The company always seeks to implement its own requirements, however, in the event that these are not accepted by its partner, the standard contracts to be used must be arranged with and validated by the Legal Affairs Department, with the form, payment terms, guarantees and other terms and conditions as authorized by GS Inima.

Great partnership

SELECTION

EVALU

ATION

TYPE-APPROVA

L

PROCUREMENTMANAGEMENT

MODEL


GreAt PArtnerSHiP / TOWARDS An HOneST AnD TRAnSPARenT BUSIneSS MODeL / 72

Supplier type-approval process

The process for the type-approval of suppliers is included among the duties of the Procurement and Quality and Environment departments, which evaluate compliance with the following aspects:

• Positive consideration is given to the fact that the supplier holds quality, environmental or occupational safety management certificates, such as ISO 9001, ISO 14001, EMAS and OHSAS 18001, as well as other quality and environmental management systems certificates.

• An analysis is made of the supplier’s compliance with environmental legislation and, for construction, the supplier’s registration in the Register of Approved Companies (REA) is verified in order to confirm compliance with the requirements of capacity, quality and occupational risk prevention.

• Positive consideration is given to the quality certificates of the product to be supplied.

• The supplier must accept the commitment of being audited by GS Inima or by an independent external auditor.

• The supplier must provide evidence of proven experience in the water or waste treatment sector or, otherwise, in industrial sectors.

• A type-approved level of quality is required by means of the submission of samples of products and services.

Once the appropriate verifications have been made, the supplier will be type-approved. The responsibility for analyzing, assessing and processing the type-approval status of the suppliers in order to keep this database updated falls upon the Procurement Department.

During 2012, 6.8% of the total volume of purchases referred to suppliers who held certification of some kind in social or environmental aspects. In addition, 182 contracts were signed where human rights criteria were included.

TOWARDS An HOneST AnD TRAnSPARenT BUSIneSS MODeL

GS Inima, recognizing the importance of ethics and transparency in business, manages its business in alignment with the company’s vision and based on values shared by all of its stakeholders.

Policy and code of conduct: advancing towards responsible management

In a process of transformation such as that being experienced by GS Inima, it is essential for the company to know where it is going and to have a point of reference. Under this premise, the company assumes the commitment of integrating as its own the commitments and policies of GS E&C.

The aim of the company in this context is to develop a consistent and shared ethical culture, establishing the values that are to guide the conduct of all of the people who work at GS Inima.

GS E&C’s policy on ethical management is anchored by the following mainstays, which are aligned with the mission, vision and values of GS Inima:

• Detect any unethical conduct as may have occurred and adopt strong measures of response.• Establish a system for eradicating corruption.• Involve and train the employees and other stake-holders in the promotion of ethica management.• Strengthen audit activities and monitoring in order to create a corporate culture of ethical management.

As part of the implementation of the GS E&C Policy in terms of ethical management, GS Inima is in the process of adapting its Code of Conduct to the company’s own reality, in all instances considering the guidelines

Supplier evaluation process

GS Inima evaluates and regularly monitors the management of its suppliers. The results of this evaluation are reported to the suppliers in a transparent manner and are used as a reference for the renewal of the type-approval, as well as for the identification of improvement actions.

To facilitate this process, the company has a software tool that is completed at the end of each contract and gathers all of the information relating to the evaluation.

Each year, the relevant Departments prepare a Supplier and Subcontractor Evaluation Report where performance is reflected in the context of quality, environment and safety and health, and the areas for improvement are identified. These reports will reflect the instances of noncompliance with the contract clauses, if any.

The evaluation reports are based on verifications of the supplies and the services contracted. These verification processes examine the relevant technical, construction capacity, legal, financial and tax situation aspects, and also ensure that the suppliers’ employees are registered in the Social Security Register and that the occupational safety and environmental regulations are observed.

If any instances of noncompliance are detected, these will be reported to the supplier in accordance with the Procedure for the Management of Non-Conformities, Corrective and Preventive Actions. The supplier must then submit a plan for improvement and establish a period of time for remedying the non-conformities.

During 2012, GS Inima made a total of 84 audits of suppliers, 10 of which were carried out by the company’s own staff and 74 by an independent external auditor.

The Procurement department ensures that GS Inima’s technical information is consistently updated and, to this end, coordinates technical seminars to enable suppliersto present new products.

established therein.

• Respect, value and listen to customers, as they are the basis of the business, seeking to build relationships of trust with them and providing them a differentiating value.

• Protect the interests of the shareholders and inves-tors, thanks to a scaled growth through rational and ethical operations and activities.

• Respect the employees, treat them fairly in accordance with their skills and performance, foster their safety and health, as well as create a working atmosphere where creativity, transparency and human and professional values are encouraged and recognized.

• Guide the relationships with partners by the prin-ciples of equal opportunities and transparency, searching for mutual interests.

• Employees must be aware that the goal of the business is not the maximization of profits but rather becoming a company respected by society, ethical, solvent and offering guarantees both to its customers as well as to its own employees.

fight against corruption: a priority

GS Inima rejects practices that could influence the will of outside persons in order to obtain a benefit of some kind by means of recourse to unethical practices as well as the use of such practices with its own employees by other persons or entities.

Moreover, to ensure maximum transparency in tendering processes and to minimize the risks of bribes and corruption in these processes, the company cooperates actively with associations in the sector for the purpose of ensuring that the criteria established in the procurement terms and conditions as well as the tendering process itself, are objective, clear and transparent.

“GS Inima uSES EnvIrOnMEnTal anD SOCIal CrITErIa fOr ThE TyPE-aPPrOval Of ITS SuPPlIErS”

School children participating in the“Health Clean Water for All program”, Ribeirão Preto WWTP (São Paulo, Brazil)School children participating in the “Health Clean Water for All program”, Ribeirão Preto WWTP (São Paulo, Brazil)


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A ReSPOnSIBLe COMPAny In THe COMMUnITIeS WHeRe IT OPeRATeS

GS Inima undertakes to comply with its functions and responsibilities as a socially responsible company. To this end, it participates actively in the promotion of shared values through investment in social programs.

GS Inima believes that its commitment to the social environment in which it operates must go beyond the mere provision of the service that defines its business activity. For this reason, the company makes a significant effort in these communities to raise awareness and to educate about the relevance of water in society, as well as its proper use and management.

Visits by educational institutions to GS Inima’s facilities in Ribeirão Preto

GS Inima Environment encourages visits by educational institutions to its facilities as a training and awareness-raising initiative. In this regard, the Ribeirão Preto Wastewater Treatment Plant (Brazil) has been organizing the Health Clean Water for All Program since 2005, which has attended to more than 58,000 students since its creation.

In the framework of this program, guided visits to the facilities are planned for school children and students from 6 to 25 years of age belonging to public and private educational institutions in the city.

School visits are received three days a week. For this

In this framework, GS Inima’s professionals provide training associated with the water sector by organizing environmental classes. Similarly, the company offers university engineering or pharmacy students the possibility of participating in practical day-long meetings at the plants, to enable them to become familiar with technologically advanced facilities, thereby enhancing their knowledge and, consequently, their degree of employability.

The community involvement initiatives carried out by GS Inima in Brazil are particularly relevant, as an active part of the company’s commitment to the promotion of the social development of the communities where it operates and of the values shared with its stakeholders.

purpose, the company takes charge of collecting the students at their schools, and at the plant staff members explain the water treatment process, as well as the benefits and quality of the service.

The company also organizes practical classes weekly, with a more technical content, appropriate for university students in the region. The students are trained by plant staff and have the opportunity to perform practice work in the facilities of the WWTP, receiving a certificate at the end of the day-long training sessions.

In some of the projects in which GS Inima participates in Brazil, such as the Mogi Mirim WWTP, the financing body includes the subsidizing of social actions as a contract clause and, following the completion of the project, makes an evaluation of the fulfillment of these

Presentation of awards: Outstanding Citizen of Ribeirão Preto (Paulo Roberto de Oliveria) and Corporate Citizen – friend of Ribeirão Preto (Ambient Serviços Ambientais de Ribeirão Preto S.A.)

Presentation of awards: Outstanding Citizen of Ribeirão Preto (Paulo Roberto de Oliveria) and Corporate Citizen – friend of Ribeirão Preto (Ambient Serviços Ambientais de Ribeirão Preto S.A.)


GreAt PArtnerSHiP / A ReSPOnSIBLe COMPAny In THe COMMUnITIeS WHeRe IT OPeRATeS / 76

terms. In Mogi Mirim, GS Inima participates together with the Secretariat of Education and the Ministry of Environment in the development of a community involvement project for the purpose of fostering environmental education among young people.

In addition, GS Inima Brasil devotes 4% of its taxes to cultural projects and in 2012 collaborated with the Ribeirão Preto Symphony Orchestra.

The company also earmarks 1% of its taxes to the government fund, Crianças y Adolescentes, which cooperates with organizations that further education, labor market integration and equal opportunities for young people and adolescents. During 2012, in the framework of this social fund, GS Inima Brasil collaborated with ABRACIA (fight against childhood

cancer) and APAE (social inclusion of children with disabilities).

Finally, collections of money, food or school materials are taken up among the workers at the various facilities. These resources are donated to associations that foster the social and economic development of the local communities.

A good demonstration of the personal effort made by the entire staff and of the company’s commitment to the communities where it operates was the naming of the Manager of GS Inima Brasil, Paulo Roberto De Oliveria, as Ciudadão Ribeirãopretano (Outstanding Citizen) for his services to the community of Ribeirão Preto.

Physical-chemical testing laboratory. Alicante II SWRO (Spain) Operator working on secondary decanters. Granollers WWTP (Barcelona, Spain)


GreAt PArtnerSHiP / CReATInG A SAfe WORkPLACe / 78

CReATInG A SAfe WORkPLACe

In the framework of the Occupational Risk Prevention Management System, GS Inima is committed to preventing any and all harm to people at the workplace, through the implementation of best practices in accident prevention and safety in workplace operations.

The management of safety and health

Occupational Safety and Health are essential for GS Inima, and it is for this reason that the company has set for itself the goal of providing all of its employees a safe and healthy work environment.

This commitment to occupational safety has been put into practice with the approval by General Management of the Occupational Risk Prevention Policy. The Guiding

• empowerment of the employees. To guarantee the participation, information and consultation of the workers, by establishing adequate channels of communication, in addition to ensuring the sufficient and adequate training of employees through the provision of the necessary resources.

• extension of the foregoing commitments to outside personnel. To extend responsibility for Occupational Risk Prevention jointly to the company’s own personnel as well as to external workers, with the aim of ensuring that the employees of collaborating companies are guaranteed the same level of Safety and Health as the company’s own staff. To set safety and health reporting, coordination, cooperation, supervision and performance control as strategic targets.

Principles of this Policy are:

• Integration into the business activities and decisions. To consider Occupational Risk Prevention as one of the priority activities within the company, integrating it into the company’s operations and decisions overall, as well as across all levels of the staff establishment. For this purpose, the company is committed to including Occupational Risk Prevention in its work programs and to put it into practice prior to the commencement of the programs, drawing up the relevant prevention documentation. It also strives to attain excellence in the management of Safety and Health, going beyond mere compliance with current regulations.

Llanura Manchega DWTP (Cuenca, Spain)



GS Inima has implemented an Occupational Risk Prevention Management System (ORPMS) that takes the international standard OHSAS 18001 as its benchmark and is built around the following elements:

• Planning: Identification and assessment of risks and preventive planning. The ORPMS has procedures that describe the methodology for the identification and assessment of risks in all of the stages of the company’s projects.

• Implementation and operation. The processes planned are implemented through the recourses allocated, such as, for example, the processes for the control of documents, of operations, of communication and the participation of the interested parties, together with actions in the event of possible emergency situations.

• Monitoring and evaluation of performance. Once the processes, programs and initiatives have been implemented, they will be monitored and measured in terms of the ORP Policy, the targets, the goals and the requirements established.

• Review of the Management System. The Safety and Health Committees will meet on a regular basis and will take appropriate actions to ensure the continuing appropriateness, adequacy and effectiveness of the System. Likewise, an assessment will be made of the

need to introduce changes into the System, the policy and/or the targets, as a consequence of the results of audits, of changes in circumstances or of the commitment to continuing improvement.

In 2012, close to 35% of the employees in GS Inima’s workforce operate at work centers under an externally certified prevention system.

Safety and Health Committees

To ensure the consultation and participation of the workers in the area of occupational safety and health, GS Inima has formal Committees at the work centers where this is necessary. The employees are represented through the prevention delegates or their staff representatives.

The Management Safety and Health Committee, made up by the General Manager, the O&M Manager, the Corporate Services Manager, Construction Delegate, Prevention Manager and Head of the Prevention department, meets every four months. The purpose of this Committee is to make a full and proper analysis of the System and its current situation as well as to define the targets and future strategies in terms of ORP. More specific issues are also addressed and include:

• Evaluation of the results of internal and external audits.

• Follow-up of the results of the evaluation of com-pliance with legislation and other applicable regulatory provisions.• Follow-up of the relevant communications of external interested parties, including complaints, analysis of infringements and penalties.• Monitoring of the status of the investigation of incidents /accidents.• Review of the status and degree of compliance with the Corrective and Preventive Actions undertaken and follow-up of Non-Conformities.• Review of the current preventive training plan.

REV

IEW

BY M

ANAGEMENT PLANNING

MO

NITO

RING AND ANALYSIS IMPLEMENTATION A

ND

OPE

RATI

ON

ORPMANAGEMENT

SYSTEM

Accident rates - own personnel

Frequency rate

Incidence rate

Severity rate

Men

4.23

39.92

0.126

Women

0

0

0

Total

3.59

33.98

0.11

Absence rates- own personnel 1.92%

Operator verifying control panels. Mostaganem SWRO (Mostaganem, Algeria)

“In 2012, GS Inima InvESTED MOrE Than 350,000 EurOS In SafETy & hEalTh”

“GS Inima haS a fIrM COMMITMEnT TO ThE CrEaTIOn Of STaBlE EMPlOyMEnT anD TO ThE hIrInG Of lOCal PErSOnnEl”



Monitoring of performance in terms of the accident rate

The work and effort by GS Inima in occupational safety and health is reflected in the attainment of continuing improvement in the accident and absence rates. For this purpose, the company strives within the ORPMS to improve the statistical control of accidents / incidents at all of its work centers.

The accident and absence rates registered in 2012 are set out below:

GS Inima strives continuously in order to align the monitoring of its performance in safety and health with its ORP Policy, where explicit reference is made to the commitment of ensuring that outside workers are guaranteed the same level of Safety and Health as the company’s own personnel. In this regard, the company is making progress in its information gathering processes with respect to the health and safety situation of its contractors in order to improve its reliability and scope.

Creation of a culture of safety, training and awareness

In the process for the continuing improvement of Occupational Safety and Health conditions, GS Inima has carried out a range of initiatives to foster the adoption of best practices in occupational risk prevention. In this regard, the actions contributing to the creation of a proactive and anticipative culture of prevention are particularly significant, with the aim of eliminating or reducing the risks that could give rise to accidents.

GS Inima’s commitment to providing a safe work environment, respectful of the health and safety of all of its employees, is reflected in the company’s investment in safety and health which totaled 356,000 euros in 2012.

GS Inima feels that training in safety and health is necessary for creating the culture of prevention and reduction of occupational risks mentioned above. This is why the training requirements in risk prevention are included within the ORP Management System.The company identifies the training requirements through a process of analysis of training needs, adjusting these requirements to the characteristics and assessment of the risks specific to each position. A total of 14 courses with Occupational Safety and Health content were given in 2012. The most significant among these are listed below:

• Day-long course on prevention in Explosive Atmos-pheres - ATEX, the aim of which was to inform employees about the associated risks and to analyze the principles established in the ATEX directive, together with the guidelines to be considered for the preparation of the Protection against Explosions Document.• International Carriage of Dangerous Goods by Road - ADR.• Emergencies and First Aid.• Regular awareness-raising session on the risks associated with each position.

Occupational health

For GS Inima, the wellbeing of its employees is extremely important and, for this reason, prevention is fostered through the promotion of a culture of occupational health.Examples of the effort being made by the company to integrate occupational health into its organization include the programs carried out in the individual facilities and countries:

• At the GS Inima work centers, employees undergo annual medical examinations, and a cooperation agreement has been signed with private medical firms.• In Brazil, the plants have an Occupational Health Medical Control Program.• In the United States, the company partners with a

number of associations, such as the Plymouth County Water Works Association and the New England Water Works Association in matters of safety and health.• In Algeria, external personnel made an occupational health diagnosis among the employees of the plant in Mostaganem.

Country(thousand of euros)

Spain

Brazil

Algeria

Mexico

United States

Total

Investment in Safety and Health

182

126

43

4

1

356

Country

Spain

Brazil

Algeria

United States

Mexico

Chile

Total

Number of employees

253

242

83

19

19

2

618

“GS Inima PrOMOTES Equal OPPOrTunITIES In OrDEr TO GEnEraTE a wOrk EnvI-rOnMEnT whErE PErSOnal CIrCuMSTanCES wIll nOT SIGnIfy a lIMITaTIOn TO aDvanCEMEnT”

Age

Under 30

30-50

Over 50

Total

Number of employees

132

391

95

618

GS Inima offices (Madrid, Spain)


GreAt PArtnerSHiP / DeVeLOPInG A TeAM fOR A SUSTAInABLe fUTURe / 84

DeVeLOPInG A TeAM fOR A SUSTAInABLe fUTURe

Aware that good Human Resources management is essential for survival and growth, GS Inima makes a significant effort in order to improve the work environment. With this purpose in mind, the company undertakes to develop a corporate culture through innovative work methods and by facilitating communication. Similarly, GS Inima promotes the reconciliation of work and private life and offers rewards in consonance with output and opportunities for the development of work skills.

HIGHLIGHTS In 2012

• Definition of the Management by Objectives Program.• Definition of the Skills Assessment Program.

In 2012, GS Inima experienced far-reaching organizational changes, which have made it necessary for the company to put forth a significant effort to adapt to its new reality. In the context of the independence offered by its parent company in the area of Human Resources, GS Inima has developed an organic structure for the management of Human Resources capable of meeting the challenges faced by the company. Accordingly, a unit has been created to take charge of grouping together all of the efforts relating to the management of the company’s employees.

Under these premises, the Human Resources Policy established by the former parent company was maintained during 2012, with a classroom and on-line Training Plan and collaborations with training centers for the management of the company’s human resources.

The employees: the company’s most valuable capital

Behind every major GS Inima project there is a team of people capable of succeeding in making it a reality. That is, people who give their very best in an environment of challenging work that drives them to continue learning and developing. An environment based on equal opportunities regardless of gender, nationality or origin.

These capacities and this environment are what attract new talent to an increasingly more competitive company.

One of the mainstays that GS Inima considers most important for advancing towards excellence in the management of human resources is the principle of equal opportunities in the work environment. For this reason, the company wagers on workforce diversity and the reconciliation between work and private life. The GS Inima workforce was comprised by 618 people at the end of 2012, with 526 men and 92 women.

Breakdown of employees by type of contract

The GS Inima workforce is distributed by activity in the following manner.

Breakdown of employees by country

Breakdown of employees by age

Commitment to the creation of stable employment

In the current context, having a stable job is a key aspect valued by the people who work at GS Inima. The company’s commitment in this regard is outstanding, considering that 470 employees have a permanent contract, that is, 71.13%, while only 139 employees are engaged on a temporary basis.

One of the priority aspects of GS Inima’s recruitment processes is the hiring of local personnel or people resident in the same geographical area where they are

going to work. This measure is intended to facilitate the reconciliation of work and family life as well as to achieve greater employee retention and stability.

Breakdown of employees engaged by gender

Breakdown of employees engaged by age

Type of contract

Full-time

Part-time

Men

84.79%

0.32%

Women

14.08%

0.81%

Total

98.87%

1.13%

Construction

O&M

Structure(administration,corporate services, etc.)

48%

35%

17%

Gender

Men

Women

Total

Number of employees hired in 2012

285

22

307

Age group

Under 30

30-50

Over 50

Total

Number of employees hired in 2012

67

111

129

307

Alacantí norte WWTP staff in Control Building (Alicante, Spain)Granollers WWTP and Drying Plant staff in Control Building (Barcelona, Spain)



The high number of new contracts is due to the start in 2012 of the construction of the Campos do Jordão plant and the creation of departments at the head office.

Breakdown of employees leaving their employment by gender and turnover rate

Breakdown of employees leaving their employment by age and turnover rate

GS Inima sees training as a continuing and permanent process. This means that the company must progressively adapt the training to the needs of the moment, to the versatility and speed with which new business and technological changes occur, requiring the constant readaptation and upgrading of the training plans in respect of planning, programming and performance.

The Training Plan developed takes in the training activities that the new requirements, the employees and the context demand, in order to improve training management and support the career development of the company’s employees, based on the following principles:

• Innovation, seeking to encourage the innovative capacity of the employees through their participation in training activities.• Adaptation to the differentiating characteristics of the groups, departments and the personal and material resources existing in each case.

• Quality with the idea of ensuring the effectiveness of the Training Plan, by guaranteeing the proper organization and adequacy of the different training modalities and their repercussion on the learning process.• Coordinación between the planning, the perfor-mance and the evaluation of the Plan.• Active engagement of the employees, by expressing their training needs and demands.• Evaluation and monitoring with the inclusion of re-gular follow-up procedures, evaluation of the ongoing training, which will serve for the continuing improvement of the course content and learning processes.

During 2012, the Training Plan defined by the former parent company was continued. Under this Training Plan, a total of 5,769 hours of training were provided, which signifies an average of 9.5 hours of training per employee in the case of men and 9.6 hours per employee for women.

fostering employee development

The development of its human capital is of key importance for the success GS Inima. This is why the company is involved in a process of the definition and implementation of a skills map that will make it possible to identify the specific needs for development of each position and organizational level.

To this end, GS Inima has defined ten skills applicable to the entire company. Starting from these, those skills that would be essential for each organizational level have been determined. In each case, two will be maintained as common skills, independently of the organizational level on which the employee is found: business-oriented attitude and teamwork. Another three of the skills defined will be selected for each department.

In line with the skills identified for each of the organizational levels and departments, a specific Training Plan is designed for developing the skills of each of GS Inima’s employees.

Gender

Men

Women

Total

Number of employees who have left

108

7

115

Turnover rate (%)

20.53%

7.2%

18.6%

Age group

Under 30

30-50

Over 50

Total

Number of employees who have left

41

64

10

115

Turnover rate (%)

31.1%

16.4%

10.53%

18.60%

Management by Objetives

SkillsAssessment

PerformanceAppraisal

Headquarters in Madrid (Spain)

0

1382

1146

522

1420

1299

200

400

600

800

1000

1200

1400

Graduate degree holders

Undergraduate degree holders

Non-graduate technicians

Clerical staff

Other personnel

Hours of training by job category



In the first place, a process of Skills Assessment is being established on the basis of ten basic skills defined by the company. Each one of these has differentiated characteristics for each position within the organizational structure and will be evaluated and graded on the basis of four levels of performance.

The Skills Assessment is complemented by the Management by Objectives model. This model consists of the assessment of performance on the basis of previously defined quantitative and qualitative indicators (KPI), against the objectives established. These indicators must be defined for each position and be aligned with the structure, the strategy and the goals of the company and of each of the departments. Moreover, a half-yearly follow-up of the indicators will be made with a view to establishing actions for improvement, if any are necessary.

The results of this mixed model of performance appraisal will define salary increases and the variable remuneration to be offered to each employee at the end of the financial year. Similarly, the model makes it possible to identify training needs on an individual level for each employee, according to the areas for improvement identified, and detects the talent within the company, providing career development in line with the talent identified.

In 2013, GS Inima is going to continue working on the implementation of this mixed appraisal model, with the intention of having all of its employees included in the model by 2014. Moreover, the company will continue expanding its scope to encompass other geographical areas, introducing the model into Algeria, Mexico and the United States and standardizing the model implemented in Brazil, where there are local policies of performance evaluation, pay and training in place.

The investment in training during 2012 totaled 109,950 euros, which was distributed for the organization of training courses on the following subjects, with the participation of a total of 150 employees:

Attracting and retaining talent

The new organizational context means that the company is undergoing a process of implementation in Spain of a mixed model of performance appraisal, made up by Skills Assessment and Management by Objectives.

Subject matter

Production

Occupational Safety and Health

Environment

Total

Number of courses

44

14

4

62

Ribeirão Preto WWTP Administrative Building (São Paulo, Brazil)



Creating an attractive work environment for people

Fringe benefits

The fringe benefits are included in a Flexible Pay Plan and are applicable solely to permanent employees and to workers on a temporary contract with a duration of more than one year. The Plan is comprised mainly by the following items:

• Life and Accident Insurance.• Substantial improvement of the supplements for disability above the amounts regulated in the sector-wide collective agreement.• Aid to the children of employees with disabilities.• Childcare checks for children of employees under 3 years old.• Seniority Prizes after 25 and 40 years.• Flexible workday at the head office.• “Get Computerized” Plan with aid for the purchase of computer equipment.

channels of communication among the employees themselves and with their supervisors.

Trade union relations

GS Inima promotes and respects the rights of freedom of association and collective bargaining in the work environment. At the present time, the Code of Conduct of GS E&C is being adopted, where explicit reference to this aspect is made.

At GS Inima, all of the workers are covered under collective agreements in effect in the various countries where the company operates. In Spain, a high percentage of workers belong to the agreements applicable in the Construction, Water Services, Engineering and Iron & Steel sectors, among others.

In the case of the employees who work in plants that run by GS Inima under the operation & maintenance system, these workers are covered by the collective agreement determined by the former operator of the facility.

equality and diversity

GS Inima conceives the application of effective policies for the promotion of equal opportunities in all aspects as one of the key lines for achieving progress. For the company, equality is a key capacity in the generation of a professional environment in which the sole benchmark for career development is the capacity of the individual and the individual’s determination to progress, with no situations whatsoever where personal circumstances could signify a limitation to advancement.

As a demonstration of GS Inima’s commitment to the role of women in the working world, the company is adopting the Code of Conduct of its parent company where explicit reference is made to equal opportunities.

This commitment to equality also extends to the sphere of remuneration. GS Inima pays the same base salary to all of its employees. The differences existing in the salary ratio between men and women do not stem from a gender factor but rather are due to the different

average longevity between the two groups. The base salary ratio of men with respect to that of the women employees is 126.5%.

The importance given by the company to equal opportunities in career development is also reflected in the high percentage of women on all of the professional levels. Women account for 13.3% of the composition of the steering committee.

The practices introduced in Brazil stand out in this aspect where, in addition to offering a number of the benefits mentioned above, GS Inima offers all of the employees a share in the company’s profits and aid of up to 50% for registration in long-term training courses.

Channels of communication with the employees

GS Inima has taken up the commitment of fostering flexible and fluid labor relations with a close relationship among the employees and between the employees and their managers or any other supervisor.

In general, the channels of communication used are conventional channels, without any formal and systematized channels of communication to date. However, the company is focusing its efforts on the formalization of these relations among the employees and, to this end, is developing the corporate intranet, which will house all of the information of relevance to employees (news highlights, corporate developments, new management tools, etc.) and will provide formal

“GS Inima PrOMOTES Equal OPPOrTunITIES In OrDEr TO GEnEraTE a wOrk EnvIrOnMEnT whErE PErSOnal CIrCuMSTanCES wIll nOT SIGnIfy a lIMITaTIOn TO aDvanCEMEnT”

About this Report

GS Inima headquarters (Madrid, Spain)

ABout tHiS rePort / 95

SCOPe AnD fOCUS

This document is the first Corporate Social Responsibility Report to be published by GS Inima, accounting for its commitments in this area, and refers to the period included between January 1 and December 31, 2012.

For the preparation of the GS Inima Corporate Social Responsibility Report, which is a yearly publication, the company has followed the indications of the Global Reporting Initiative’s Sustainability Reporting Guidelines (GRI – G3.1).

GS Inima itself declared this Corporate Social Responsibility Report as Application Level B. Moreover, the report has been GRI-checked and was found to meet the requirements of Application Level B.

This document also covers all of the geographical areas where GS Inima is present and all of the subsidiaries of GS Inima in which it holds a stake of more than 40%.

The limitations to the scope of the information are reflected in the relevant sections of the report and on the Global Reporting Initiative table of performance indicators.

PRInCIPLeS fOR THe PRePARATIOn Of THe RePORT

Adherence to the principles set by the Global Reporting Initiative’s Sustainability Reporting Guidelines guarantees that the information contained in this report is reliable, complete and balanced. GS Inima ensures adherence to these principles in the following manner.

Principle of materiality

GS Inima carried out an exercise of analysis for the purpose of identifying relevant matters in the scope of Corporate Social Responsibility. For this exercise, consideration was given to the aspects that are evaluated by the main socially responsible investors, to the ethical, environmental and social requirements

being introduced into the public tendering processes in which GS Inima has participated and to the focus of GS E&C in terms of Corporate Social Responsibility. Moreover, a working session was held with the participation of GS Inima managers together with the General Manager, in order to reflect on the significance that the aspects identified in the first stage would have for the company’s business.

These variables have made it possible to assess the degree of criticality of each issue and, on this basis, to decide on the content of the Corporate Social Responsibility Report.

The section on “Managing sustainability at GS Inima” explains in greater detail the process followed for undertaking this exercise of analysis.

Stakeholder inclusiveness

The company has identified its stakeholders and their expectations and has determined actions for establishing a transparent and clear dialog with them. In the “Dialog with stakeholders” section, this stakeholder inclusiveness process is described in detail.

Sustainability context

The report analyzes the company’s performance in the context of the economic, environmental and social demands of its social and market environment. The section on “Managing sustainability at GS Inima” specifically examines this scope.

Principle of completeness

The outline of contents has been defined with the participation of the heads of the company’s principal management areas. This ensures that the essential aspects and impacts of GS Inima’s business activities have been considered. The performance of the above-mentioned exercise of analysis of relevant issues has been very useful for addressing this principle in depth.

PRInCIPlES FOR EnSuRInG REPORT QuAlITy

GS Inima has also followed the Global Reporting Initiative recommendations for ensuring the quality of the information disclosed in this report. The consideration of the principles set out below ensures that the information provides due guarantees of quality:

Principle of comparability

The information disclosed in this report enables stakeholders to analyze the company’s performance in 2012 as well as to compare its performance to that of other organizations. Taking into account the particularities of the process of acquisition of the company by GS E&C, information on ethical, social and environmental performance is offered solely in respect of 2012.

Principle of balance

The report clearly sets out the positive and negative aspects of the organization’s performance, enabling a reasoned assessment thereof.

Principle of accuracy

The information disclosed in this report is accurate and sufficiently detailed, to enable the company’s stakeholders to adequately assess its performance.

Principle of timeliness

GS Inima is publishing its first Corporate Social Responsibility Report. However, the company’s aim is to submit this report hereafter on a yearly basis, to enable stakeholders to make adequately informed decisions.

Principle of clarity

The information included is presented in an understandable manner accessible to all of the stakeholders. To facilitate its understanding, tables and

graphs have been included, while the use of technicisms that could be unfamiliar to stakeholders has been avoided.

Principle of reliability

The information contained in this report is taken from the policies and procedures incorporated into the systems of GS Inima, and its purpose, among others, is to ensure the proper presentation of the company’s information to third parties.

About this Report


The following table identifies the chapters and the pages of the Corporate Social Responsibility Report 2012 prepared by GS Inima Environment S.A. where the various requirements established by the Global Reporting Initiative (G3, version 3.1) are included.

Annex I: Index of GRI contents

1. Strategy and Analysis

1.1 Statement by the Chairman.

1.2 Description of key impacts, risks and

opportunities.

Extent of Reporting

Fully reported

Fully reported

Matters not Reported

Reason for Omission Remarks Pages

4-5

4-5

2. Organizational Profile

2.1 1 Name of the organization.

2.2 Primary brands, products

and/or services.

2.3 Operational structure of the

organization, including the main

divisions, operating companies,

subsidiaries and joint ventures.

2.4 Location of the organization’s main

headquarters.

2.5 Location and name of the countries

where the organization carries out

significant operations or those that are

specifically relevant to the sustainability

issues dealt with in the report.

2.6 Nature of ownership

and legal form.

2.7 Markets served (including

geographical breakdown,

the sectors supplied and

types of customers/beneficiaries).

2.8 Scale of the reporting organization

(including number of employees, net

sales or revenues, total capitalization,

quantity of products or services

provided).

2.9 Significant changes during the

reporting period regarding the size,

structure and ownership of the

organization.

2.10 Prizes and awards received during the

reporting period.

Nivel deReporte

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Nivel deReporte

8

8-9

8-15

8-15

13-15

8-18

13-15

32, 62-63, 85

18-21

30

Asuntos noreportados

Razón dela omisión Comentarios Páginas

3. Report Parameters

Report Profile

3.1 Period covered by the information

contained in the report.

3.2 Date of the most recent

previous report..

3.3 Reporting cycle

(annual, biennial, etc.).

3.4 Contact point for questions regarding

the report or its contents.

Report scope and boundary

3.5 Process for defining

report content.

3.6 Boundary of the report.

3.7 State any specific limitations on the

scope or boundary of the report.

3.8 Reporting on joint ventures,

subsidiaries, leased facilities,

outsourced operations, and other

entities that can significantly affect

comparability from period

to period and/or

between organizations.

3.9 Data measurement techniques and the

bases of calculation, including

assumptions and techniques underlying

estimations applied to the compilation

of indicators and other information in

the report.

3.10 Description of the effect of any

re-statements of information

provided in earlier reports,

and the reasons for

such re-statement.

3.11 Significant changes from previous

reporting periods in the scope,

boundary or measurement methods

applied in the report.

GRI Content Index

3.12 Table identifying the location of the

Standard Disclosures in the report.

Assurance

3.13 Policy and current practice

with regard to seeking external

assurance for the report.

Extent of

Reporting

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Pages

94

94

94

94

94-95

94-95

94-95

96-106

Matters not

Reported

Reason for

Omission Remarks

No previous reports have been prepared, whereby no changes have been made.

Back cover.



No external assurance was sought for the report.

ABout tHiS rePort / Annex I – InDex Of GRI COnTenT / 98

4. Governance, Commitments and

Engagement of Stakeholders

Commitments to External Initiatives

4.11 Description of how the organization

has adopted a precautionary approach

or principle.

4.12 Externally developed economic,

environmental and social principles or

programs, as well as subscribed or

approved by any other organization.

4.13 Main memberships in associations

and/or national and international

advocacy organizations supported by

the organization.

Stakeholder Engagement

4.14 List of stakeholder groups engaged by

the organization.

4.15 Basis for the identification and selection

of stakeholders with whom the

organization engages.

4.16 Approaches to stakeholder engage

ment, including frequency of

engagement by type and by

stakeholder group.

4.17 Key topics and concerns that have

been raised through stakeholder

engagement and how the organization

has responded to those

key topics and concerns, including

in its reporting.

Extent of

Reporting

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Pages

28-29

30

30

31

28-29

28-31

28-31

Matters not

Reported

Reason for

Omission Remarks


4. Governance, Commitments and

Engagement of Stakeholders

Governance

4.1 Governance structure of the

organization.

4.2 Indicate whether the Chair is also an

executive officer.

4.3 Number of members of the highest

governance body that are independent

or non-executive members.

4.4 Mechanisms for shareholders and

employees to provide recommenda

tions or direction to the highest

governance body.

4.5 Linkage between compensation for

members of the highest governance

body, senior managers and executives

and the organization’s performance.

4.6 Processes in place for the highest

governance body to ensure conflicts of

interest are avoided.

4.7 Process for determining the

qualification and experience required of

the members of the highest

governance body for guiding the

strategy of the organization in social,

environmental and economic issues.

4.8 Internally developed statements of

mission and values, codes of conduct

and policies relevant to economic,

environmental and social performance

and the status of their implementation.

4.9 Procedures of the highest governance

body for overseeing the organization’s

identification and management of

economic, environmental and social

performance, including relevant risks

and opportunities, as well as

adherence or compliance

with internationally agreed

standards, codes of

conduct and principles.

4.10 Procedures for evaluating the highest

governance body’s own

performance, particularly with respect

to economic, environmental and social

performance.

Extent of

Reporting

Fully reported

Fully reported

Fully reported

Fully reported

Not reported

Fully reported

Fully reported

Fully reported

Fully reported

Fully reported

Pages

18-19

18-19

18-19

18-20

19-20

18-19

24-25

24

18.-19

Matters not

Reported

Reason for

Omission Remarks

On account of the situation of changes experienced by the company during the past year, this information as of this day and date is particularly sensitive.Confidential


Performance Indicators

Economic Performance Indicators

Aspect: economic performance

Management Focus

GRI CodeI

EC1 (P)

EC2 (P)

Descripción GRI

Direct economic value generated and distributed.

Financial implications and other risks and

opportunities for the organization’s activities due

to climate change.

Partially reported

Extent of

Reporting

Fully reported

Partially reported

40-41, 62-63

Pages

62-63

40-41

Aspect: market presence

Management Focus

GRI Code

EC6 (P)

GRI Description

Policy, practices and proportion of

spending on locally based

suppliers at significant locations

of operation.

Partially reported

Extent of

Reporting

Fully reported

70-73

Pages

70-73

Environmental Performance Indicators

Aspect: materials

Management Focus

GRI Code

EN1 (P)

EN2 (P)

GRI Description

Materials used,

by weight or volume.

Percentage of the materials used

that are recovered materials.

Fully reported

Extent of

Reporting

Fully reported

Fully reported

46

Pages

46

46

Aspect: energy

Management Focus

GRI Code

EN3 (P)

EN4 (P)

EN6 (A)

EN7 (A)

GRI Description

Direct energy consumption, broken

down by primary energy source.

Indirect energy consumption, broken

down by primary energy source.

Initiatives to provide efficient

energy or renewable energy based

products and services,

and reductions in energy

requirements as a result of

these initiatives.

Initiatives to reduce indirect energy

consumption and the reductions

achieved with these initiatives.

Fully reported

Extent of

Reporting

Fully reported

Partially reported

Partially reported

Partially reported

47

Pages

47

47

47

47

70-73

PERFORMANCE INDICATORS

Environmental Performance Indicators

Aspect: water

Management Focus

GRI Code

EN8 (P)

EN10 (A)

GRI Description

Total water withdrawal by source.

Percentage and total volume of water

recycled and reused.

Fully reported

Extent of

Reporting

Fully reported

Fully reported

50

Pages

50

50

Aspect: emission, effluents and wastes

Management Focus

GRI Code

EN16 (P)

EN17 (P)

EN18 (A)

EN19 (P)

EN20 (P)

EN21 (P)

EN22 (P)

GRI Description

Total direct and indirect greenhouse gas

emissions by weight.

Other indirect greenhouse gas emissions

by weight.

Initiatives to reduce

greenhouse gas emissions

and reductions achieved.

Emissions of ozone-depleting

substances by weight.

NO, SO and other significant air

emissions by type and weight.

Total water discharge by nature and

destination.

Total weight of waste by type and

disposal method.

Fully reported

Extent of

Reporting

Fully reported

Fully reported

Partially reported

Fully reported

Fully reported

Partially reported

Partially reported

47-52

Pages

48

48

47-48

50

52

340 m of water have been reused, that is 0.0042% of the water consumed

0.04 tons of ozone-depleting substances

Emissions of NOx totaled 323 tonsThe rest of emissions were insignificant

In 2012 GS Inima received no significant environmental sanctions or fines

Aspect: products and services

Management Focus

GRI Code

EN26 (P)

GRI Description

Initiatives to mitigate the environmental

impacts of the products and services, and

extent of impact mitigation.

Fully reported

Extent of

Reporting

Fully reported

Pages

Aspect: compliance

Management Focus

GRI Code

EN28 (P)

GRI Description

Monetary value of significant fines and

number of non-monetary sanctions for

noncompliance with environmental laws

and regulations.

Fully reported

Extent of

Reporting

Fully reported

Pages

Aspect: overall

Management Focus

GRI Code

EN30 (A)

GRI Description

Breakdown by total environmental

expenditure and investments.

Fully reported

Extent of

Reporting

Fully reported

52

Pages

52

3




Labor Practices and Decent Work Performance Indicators

Aspect: employment

Management Focus

GRI Code

LA1 (P)

LA2 (P)

LA3 (A)

LA15 (P)

GRI Description

Breakdown of total workforce by

employment type, employment contract,

by region and by gender.

Total number and rate of new employee

hires and average employee turnover,

broken down by age group, gender and

region.

Benefits provided to full-time employees

that are not provided to temporary or

part-time employees broken down by

main activity.

Levels of resumption of work and

retention following maternity or

paternity leave, by gender.

Partially

reported

Extent of

Reporting

Fully reported

Partially reported

Fully reported

Fully reported

84-86, 90

Pages

84-85

85-86

90

These notices are given in accordance with the procedure established in the Collective Agreements covering the employees.

Aspect: labor/management relations

Management Focus

GRI Code

LA4 (P)

LA5 (P)

GRI Description

Percentage of employees covered by

collective bargaining agreements.

Minimum notice period(s) regarding

organizational changes, including

whether these notices are specified in

collective agreements.

Partially reported

Extent of

Reporting

Fully reported

Fully reported

91

Pages

91

Aspect: occupational health and safety

Management Focus

GRI Code

LA6 (A)

LA7 (P)

GRI Description

Percentages of total workforce

represented on joint management-

worker health and safety committees,

established to help monitor and advise

on occupational health and safety

programs.

Rates of absences on account of injury,

occupational diseases, days lost and

number of work-related fatalities by

region and by gender.

Partially reported

Extent of

Reporting

Partially reported

Partially reported

78-83

Pages

80

82

During 2012, all of the employees who applied for maternity or paternity leave returned to their jobs. Consequently, the percentage of retention was 100%

During 2012, all of the employees who applied for maternity or paternity leave returned to their jobs. Consequently, the percentage of retention was 100%

Human Rights Performance Indicators

Aspect: investment and procurement practices

Management Focus

GRI Code

HR2 (P)

GRI Description

Percentage of significant suppliers,

contractors and other business partners

that have undergone human rights

screening, and actions

taken as a result.

Partially reported

Extent of

Reporting

Fully reported

Pages



Aspect: training and education

Management Focus

GRI Code

LA10 (P)

GRI Description

Average hours of training per year per

employee, broken down by gender and

by employee category.

Partially reported

Extent of

Reporting

Fully reported

86-89

Pages

87-88

Aspect: diversity and equal opportunities

Management Focus

GRI Code

LA13 (P)

GRI Description

Composition of corporate governance

bodies and breakdown of staff according to

gender, age group, minority group

membership and other indicators of diversity.

Partially reported

Extent of

Reporting

Fully reported

18-19, 91

Pages

18-19, 93

Aspect: equal remuneration for women and men

Management Focus

GRI Code

LA14 (P)

GRI Description

Ratio of basic salary of women to men,

broken down by employee category.

Partially reported

Extent of

Reporting

Fully reported

91

Pages

91

During 2012 GS Inima has had no knowledge of any incident whatsoever in relation to the infringement of human rights

During 2012 GS Inima signed 182 contracts that included human rights criteria or are subject to screening in this regard.

Aspect: non-discrimination

Management Focus

GRI Code

HR4 (P)

GRI Description

Total number of incidents of

discrimination and measures adopted.

Partially reported

Extent of

Reporting

Fully reported

Pages



Performance Indicators in relation to Society

Aspecto: corrupción

Management Focus

GRI Code

SO2 (P)

SO3 (P)

SO4 (P)

Descripción GRI

Percentage and total number of business

units analyzed with respect to risks related

to corruption.

Percentage of employees trained in the

organization’s anti-corruption policies and

procedures.

Measures taken in response to

incidents of corruption.

Fully reported

Extent of

Reporting

Fully reported

Fully reported

Fully reported

Fully reported

Extent of

Reporting

Fully reported

Pages

During 2012 GS Inima has had no knowledge of any incident whatsoever in relation to the infringement of human rights

Risks relating to corruption have been analyzed in 8 business units

0.92% of the employees have been trained in anti-corruption policies and procedures

No incidents of corruption have occurred during the reporting period to which this report refers


Human Rights Performance Indicators

Aspect: corrective measures

Management Focus

GRI Code

HR11 (P)

Descripción GRI

Number of grievances relating to human

rights that have been filed, addressed and

solved through formal grievance

mechanisms.

Pages

Aspect: anti-competitive behavior

Management Focus

GRI Code

SO7 (A)

Descripción GRI

Total number of legal actions for

anti-competitive behavior and

anti-trust and monopoly practices,

and their outcomes.

Fully reported

Extent of

Reporting

Fully reported

Pages

GS Inima has not been subject to legal actions for unfair competition or for anti-trust and monopoly practices

Aspect: compliance

Management Focus

GRI Code

SO8 (P)

Descripción GRI

Monetary value of significant

sanctions and fines and total number

of non- monetary sanctions derived

from noncompliance with laws and

regulations.

Fully reported

Extent of

Reporting

Fully reported

Pages

In the course of 2012, fines were received in the amount of 0.226 million euros

GS Inima has not made to date any assessment of risk in relation to the violation of the right to

exercise freedom of association, child labor, forced labor or any other incident associated with

Human Rights in subcontracted operations.

All of the operations are covered by safety and health contracts for work sites that oversee

compliance with the conditions of the workers employed there.

In addition, GS Inima requests its contractors to submit certificates showing that they are up-to-date

with their tax obligations and that they have registered their employees with Social Security.



Aspect: freedom of association and collective bargaining

Management Focus

GRI Code

HR5 (P)

GRI Description

Operations and significant suppliers

identified in which the right to exercise

freedom of association and

collective bargaining may be

violated or at significant risk,

and measures taken to support

these rights.

Extent of

Reporting

Fully

reported

30-31; 40

Pages








Aspect: child labor

Management Focus

GRI Code

HR6 (P)

GRI Description


identified as having

significant risks for incidents

of child labor, and measures

taken to contribute to the

effective abolition

of child labor.

Fully reported

Extent of

Reporting

Fully

reported

Pages








Aspect: forced labor

Management Focus

GRI Code

HR7 (P)

GRI Description


identified as having significant risks of

being the origin of forced or

compulsory labor, and the measures

taken to contribute to the

elimination of all forms of forced or

compulsory labor.

Fully reported

Extent of

Reporting

Fully

reported

Pages



Human Rights in subcontracted operations, on account of not considering them as material risks,

given its geographical area of operation.





Aspect: assessment

Management Focus

GRI Code

HR10 (P)

GRI Description

Percentage and total number of

operations that have been subject to

human rights reviews or impact

assessments.

Fully reported

Extent of

Reporting

Fully

reported

Pages



Product Responsibility Performance Indicators

Aspect product and service labeling

Management Focus

GRI Code

PR5 (A)

GRI Description

Practices related to customer satisfaction,

including the results of surveys measuring

customer satisfaction.

Extent of

Reporting

Fully reported

66-67

Pages

66-67


Aspect: compliance

Management Focus

GRI Code

PR9 (P)

GRI Description

Monetary value of significant fines for

noncompliance with laws and regulations

in relation to the provision and the use of

the organization’s products or services.

Fully reported

Extent of

Reporting

Fully reported

Pages

GS Inima has received no fines on account of noncompliance with laws or regulations relating to the use of its services



Annex II – GRI Application Level

Headquarters: Quintanavides 17, Edif. 3, 3ª Planta, 28050 Madrid, Spain / Tel: +34 910 505 250 / http://www.inima.es

CORPORATE SOCIAL RESPONSIBILITY REPORT 2012

MEM

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uSAGS inima uSAAQuARIA WATER llC170 Aquaria Drive – PO Box 1000North Dighton, MA 02764 - USATel: +1 (508) 880 00 99 - Fax: +1 (508) 880 88 70

InIMA USA COnSTRUCTIOn CORPHIALEAH LLC201 S. Biscayne Blvd. 28th FloorMiami, FL 33131 - USATel. +1(305) 913 46 36 - fax +1 (305) 913 62 56

ALGeriAGS inima ArgeliaRésidence Les Deux Bassins nº 18/AEl Achour (R-Sahraoui)16000 Alger - AlgeriaTel. : +213 770 89 22 61 Mobile: +34 611 603 666Shariket Tahlyat Miyah Mostaganem, SPA (STMM, SPA)Shariket Miyeh RasDJinet, SPA (SMD, SPA)Bois des Cars 1 - nº10 – Dély Ibrahim - Argel (Algeria)

BRANCHES GS inimameXiCoGS inima méxico, S.A. de C.V.Paseo de la Reforma 222, Planta 23Colonia Juárez Delegación CuauhtémocMéxico DF – CP 06600 - MexicoTel: (+55)525555 80/54 46 54 - Fax: (+55)52 03 33 40

Promoaqua Desalación los Cabos, S.A. de C.V.Calle s/n Fracción V, predio Los Cangrejos s/nCol. Los Cangrejos - Cabos San Lucas - 23473Los Cabos - Baja California Sur - MexicoTel: +52 (624) 173 05 18 - Fax: +52 (624) 173 05 18

Aguas de ensenada, S.A. de C.V.Boulevard Ramírez Méndez , 148 A, col. Bahia SurEnsenada - Baja California Norte - MexicoTel: +55 5755 - 7375

BrAziLGS inima Brasil, LtdA.Rua Funchal, 551conj. 31CEP 04551-060 - São Paulo – SP - BrazilTel: +55 (11) 238858 01 - Fax: +55 (11) 23 88 58 01

Ambient Serviços Ambientais de Ribeirão Preto, S.A.Rodovia Alexandre Balbo SP 328, km. 334,6CEP 14062-800 – Ribeirão Preto - SP - BrazilTel: +55 (16) 39 62 81 00 - Fax: +55 (16) 39 62 81 06

Araucaría Saneamento, S.A.Avenida Frei Orestes Girardi, 1229Campos de Jordão - São Paulo – BrazilTel: +55 (16) 39 62 81 00 - Fax: +55 (16) 39 62 81 06

SeSAMM - Serviços de Saneamento de Mogi Mirim, S.A.Rua Orlando Pacini, 194 Vila MelloCEP 13800-382 MogiMirim - São Paulo – BrazilTel: +55 (19) 38 05 46 41 - Fax: +55 (19) 38 05 46 41

SAneVAP - Saneamento do vale do paraiba, S.A.Conselheiro Rodrigues Alves, 455 – CentroSão José dos Campos - São Paulo – BrazilTel: +55 (11) 30 44 41 33

CHiLeGS inima ChileCalle Rodó, 1937 AProvidencia. Santiago de Chile - ChileTel.: +56 (2) 269 00 16

DELEGATIONS GS inimaSPAin GS inima environment, S.A.Calle Tarragona 151-157, planta 7- 28014 BarcelonaTel: +34-93-521-5750 - Fax: +34-93-802-8080

https://maps.google.es/maps?q=Calle+Quintanavides,+17,+Madrid&hl=es&ll=40.4987,-3.669112&spn=0.008477,0.01649&sll=40.497737,-3.66835&sspn=0.008509,0.01649&oq=quintanavides+17,+madrid&t=h&hnear=Calle+Quintanavides,+17,+28050+Madrid&z=17

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