3.1 Mission, vision and values

The mission of Madrileña Red de Gas is to meet the energy needs of our customers in the best conditions in terms of quality, safety, sustainability and environmental protection, guaranteeing the necessary efficiency, efficacy and productivity in how our business activity performs to provide our shareholders with the best return, enhance the company’s value, and provide our workforce with a safe, healthy and model working environment that helps build a sense of pride in belonging in the company and which promotes their professional and personal development.

The vision of Madrileña Red de Gas is to work together to provide greater comfort to as many customers as possible, and to make our own workforce and shareholders grow in way that is beneficial to society. It is also part of our vision to maintain a relevant presence in significant forums and spaces, ensure business excellence and recognition to set us apart from our competitors and be respectful in the values, principles and ideals of all society stakeholders with which we have a relationship.

The values that inspire the business performance of Madrileña Red de Gas are:

• Integrity: All our actions are governed by values such as honesty, integrity and dignity, among others.
• Safety: We advocate for and implement policies aimed at ensuring suitable levels of health and safety in the workplace.
• Customer-focused: We strive for maximum customer satisfaction, as part of our commitments.
• Self-improvement: We reward performance, dedication and engagement in our business project.

We adopt an open mentality that promotes the free expression of opinions and contributions, weighing up alternatives, and promoting personal creativity and initiatives, as ways to ensure that change is seen as an opportunity to turn our business vision into reality. We foster progressive skills improvement and professional development through specific training plans.

The vision of Madrileña Red de Gas is to work together to provide greater comfort to as many customers as possible, and to make our own workforce and shareholders grow in way that is beneficial to society

It is also the desire of the senior management team to make this manifesto applicable to our relations with our suppliers and contractors, with the aim of combining our efforts to ensure it is effectively applied.

3.3 Corporate social responsibility policy

The company’s approved corporate social responsibility policy is published on the MRG website.

As an energy company, Madrileña Red de Gas has substantial influence on economic development, quality of life, sustainability and environmental protection, as it plays a key role in the natural gas distribution chain in the Region of Madrid.

Corporate responsibility is understood and embraced by Madrileña Red de Gas as the collection of strategic courses of action that the company develops to establish trusting, stable, reliable and mutually beneficial relationships with its stakeholders, which include shareholders and investors, customers, local communities, public authorities, collaborators and suppliers, employees and society as a whole. Madrileña Red de Gas promotes the creation of local employment and cooperates with organisations focused on social commitment.

Madrileña Red de Gas has corporate responsibility integrated into its strategy and positioning, as it forms part of our corporate values. We are aware that the acceptance and economic success of the company can only be sustainable if it makes an active, credible and tangible contribution to resolving the challenges facing our society. Accordingly, MRG senior management has established specific criteria for the company’s good governance, and a code of ethics that must be observed by all employees as a way to help achieve these results.

The Madrileña Red de Gas manifesto of “Mission, Vision and Values” sets out the company’s general commitments with its various stakeholders, and which can be summed up as:

• Integrity
• Safety
• Customer-driven
• Results-focused
• Empowerment

Madrileña Red de Gas will be developing a series of indicators to monitor the company’s corporate responsibility policy that are aligned with its business plans, based on a position of transparency, establishing targets and reporting on its degree of compliance.

3.4 Commitment to our stakeholders

Madrileña Red de Gas identifies its stakeholders, prioritises them, and designs and establishes mechanisms to identify their needs and expectations, and to ensure those mechanisms are monitored and continue to improve.

Madrileña Red de Gas identifies its stakeholders by analysing their processes and their relationship with the various administrative units.

Based on dialogue with our employees, collectives and organisations emerge that have a stake in the company’s decisions or activities, or that the company has an impact on, identifying the reason for the relationship (the why). The inventory of stakeholders can then be identified.

MRG identifies its stakeholders by analysing their processes and their relationship with the various administrative units

Once the stakeholders have been identified, they are prioritised, in order to:

• Establish different resources and strategies depending on the level of relevance of the different groups.
• Establish the mechanisms for relations and dialogue, taking both influence and impact into account.

For MRG, the fundamental criteria for prioritising its stakeholders are the influence that the particular stakeholder group has on the decisions, development and results of MRG activity, and the positive or negative impact on the stakeholder group as a result of the company’s past and present decisions and activities

3.4 Materiality analysis

Madrileña Red de Gas identifies and prioritises the material issues that are most relevant to sustainability, depending on how important they are for the company and for its stakeholders.

Based on the definition of material issues and using the same analysis criteria, this year we once again took the same 13 material issues as last year as the starting point. These issues arise from:

• Context analysis (SWOT).
• GRESB methodology.
• GRI Standards content.
• Benchmarking from companies in the sector.

Over 2021 we adjusted our methodology by explicitly incorporating the opinions of our relevant stakeholders. This process of reviewing the issues involved going through the following stages:

• Internal relevance priority: through interviews with the managers of the various administrative units of Madrileña Red de Gas, relevant issues are prioritised according to their internal impact (impact on the business, strategy plan and risks map) and external impact (impact on society, the environment, lawfulness, not meeting regulations or breaching human rights) perceived by the managers of the different MRG units.
• External relevance priority: through interviews with a representative sample of the relevant Madrileña Red de Gas stakeholders, relevant issues are prioritised according to the impact (positive or negative) that they have as perceived by the external stakeholders with a relevance to MRG (customers and users, shareholders and investors, public administrations, regulatory bodies and suppliers) and the performance of Madrileña Red de Gas as perceived by said stakeholders regarding each particular material issue. For this prioritisation, the weighting of each stakeholder group is taken account, as shown in the previous section.
• Internal and external relevance priority: from the two analyses above, we obtain a table showing the priority given to relevant issues, taking the prioritisation given by both internal and external stakeholders of Madrileña Red de Gas into account.

Comparing the relevance analysis conducted this year with the results from the previous year, a trend is observed of ratings in the medium-high scale compared with the results from the previous year, particularly in external prioritisation.

In short, the ratings for issues are less disperse and the rating by stakeholders and MRG is also much closer.This would indicate for some of the material aspects analysed that the external sense of relevance outside the company and that from within are becoming increasingly aligned.

As an objective for 2022, we have set ourselves the challenge of extending the involvement of relevant external stakeholders with new perception studies.

MRG identifies and prioritises the material issues that are most relevant to sustainability, depending on how important they are for the company and for its stakeholders.

3.5 Sustainability strategy

The MRG sustainability strategy consists of six main lines:

The action plans linked to our sustainability strategy have been updated and strengthened based on our new material issue prioritisation table, with regard to which our work on issues classed as critical is of particular relevance.