SAFETY, QUALITY AND ENVIRONMENTAL POLICIES
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2 SAFETY, QUALITY AND ENVIRONMENTAL POLICIES Contents 1. INTRODUCTION 2. UFG MANAGEMENT POLICIES 2.1. SAFETY Policy 2.2. QUALITY Policy 2.3. ENVIRONMENTAL Policy 1
3 1. INTRODUCTION UNION FENOSA GAS has considered, from the beginning of its activities, that people and facilities safety, quality of service and excellence in management, together with the environmental protection, are the principles that sustain the business model and the proceedings of its companies. These principles have been developed through management policies that establish a framework for the behaviour of the employees and UFG commitments, together with UFG s Code of Ethics. The way of acting and the commitments of UFG are, in general, focused on the continuous improvement and the satisfaction of the shareholders, clients, employees and other groups of interest, fulfilling their requirements, exceeding their expectations and contributing to their development and results, including that of the communities where the group s companies develop their activities. The policies of management of UFG included in this document apply to all the companies of the UFG Group in Spain, regardless their activity, in which UFG is a majority shareholder and/or is responsible of their operation and/or management. In the same way, and to the extent it may concern, apply to those collaborating companies that develop their activities on behalf of UFG or in the facilities of its companies, and, therefore, have an influence on the reputation and image of UFG. UNION FENOSA GAS UNION FENOSA GAS imports liquefied natural gas (LNG) produced at its jointly-owned liquefaction plants in Egypt and Oman, mainly, as well as from other locations all over the world. The supply side portfolio of UNION FENOSA GAS combines short and long term gas supply contracts, together with appropriate geographical diversity to ensure a high degree of flexibility and guarantee. All of this allows us to be sure we can supply all our clients in the Spanish market and to operate on the international markets taking advantage of new business opportunities. UNION FENOSA GAS COMERCIALIZADORA UNION FENOSA GAS has consolidated its sales activity on the Spanish market by focusing its efforts on the sale of gas to large industrial clients and to combined cycle power stations (CCGTs), through UNION FENOSA GAS COMERCIALIZADORA. In the Industrial Sector it supplies natural gas for the manufacturing processes in the most intensive sectors using this kind of fuel (paper, iron and steel, metallurgy, ceramics, glass, etc), as well as to cogeneration plants for the production of electricity and thermal energy. In addition, UNION FENOSA GAS COMERCIALIZADORA supplies natural gas to the combined-cycle plants for power generation. UNION FENOSA GAS EXPLORACION Y PRODUCCION UNION FENOSA GAS takes part in projects for the exploration and management of natural gas fields in Spain and around the world through UNION FENOSA GAS EXPLORACION Y PRODUCCION. In our country, the discovery of the Viura deposit, 4,000 metres underground in the subsoil of La Rioja, marked the start of a project that has involved significant investments in the district. The commissioning of the Viura deposit helps to reduce Spain's need to import natural gas as well as boosting the economy and creating jobs. 2
4 2. UFG MANAGEMENT POLICIES 2.1 Safety Policy The management of UNION FENOSA GAS, aware of the importance of adequately managing Health and Safety at Work (hereinafter HSW) at all its workplaces, declares its commitment and undertakes to: Promote strategies for the continuous integration of prevention in our business culture, guaranteeing the best conditions for protecting health and safety. Provide safe, healthy working conditions with a view to preventing injury and impaired health due to work. Make sure safety is understood as shared responsibility. Train, instruct and make workers aware of hazard prevention. See that processes are established enabling workers to participate in and consult on HSW. Incorporate prevention criteria in company decisions, the management of new projects and the acquisition of products and services, guaranteeing continuous improvement of the HSW Management System. Establish, implement and maintain processes to eliminate hazards and reduce risks to HSW, with the following order of priority: a) eliminate the hazard b) replace with less hazardous processes, operations, materials or equipment c) use engineering controls and reorganisation of work d) use administrative controls, including training e) use adequate personal protection equipment Reject any behaviour that may generate an unsafe, intimidating or offensive work environment. Comply with all prevailing legal provisions on Occupational Hazard Prevention and Industrial Safety, and any other Agreements signed by the company. Investigate and analyse any accidents that may occur with a view to reducing the probability of reoccurrence. Set goals and targets for fulfilment of the commitments undertaken in this declaration. Through this policy, UNION FENOSA GAS seeks to inform all its employees, clients and the public at large of its commitment to Health and Safety at Work. 3
5 2.2 Quality Policy UNION FENOSA GAS, one of the leading companies in the natural gas markets, considers that excellence in management, commitment to results and innovation are the driving forces required to generate value for its clients, shareholders, employees and other stakeholders, while ensuring that its businesses are sustainable, its processes are efficient and its products and services are competitive. This quality policy is based on the following principles: Excellence in management: Steer our abilities and activities towards achieving continuous improvement of processes and an efficient use of resources, promoting a culture of excellence, contribution of value and development of competitive advantages with which we can reach and hold on to leadership in our sectors of activity. Promote the use of management systems and work with suppliers and collaborators to provide high added-value products and services on a regular basis. Focus on clients and stakeholders: Know the demands and expectations of our clients and stakeholders, keeping abreast of their needs, providing a quality service and building lasting trust with them. Focus our actions and all enhancements in our processes towards meeting the applicable requirements and the expectations of our internal and external clients. Commitment to results: Consider the achievement of our goals to be the principal indicator of the efficiency of our processes, tools and actions. Underpin our management with planning, efficient management and the application of best practices, reviewing and adapting our actions according to the commitments, targets and results obtained. Interest in people: Provide an adequate, stimulating work environment, offering opportunities for professional development in keeping with the skills and competence of our employees. Provide our employees with training and information, encouraging participation, initiative, leadership, commitment, teamwork and constant sharing of knowledge and experience. Innovation and adaptation to change: Promote a culture of innovation within the organisation, favouring the generation and development of new ideas, consolidating expertise within the organisation and motivating our employees and collaborators. Identify any changes in our environment, considering the risks and opportunities and adapting to the constant evolution required by society and our stakeholders. 4
6 2.3 Environmental Policy UNION FENOSA GAS, a gas company operating both in Spain and in the international natural gas markets, is aware of the environmental impacts of its operations and its potential for contributing towards preservation and protection of the environment and making responsible use of the natural resources. Based on its respect for the environment, which it considers the pillar of sustainability, UNION FENOSA GAS upholds enhanced efficiency in the supply chain and efficient use of natural gas by its clients as the cornerstone of its environmental actions and its best contribution to sustainable development. This policy is based on the following principles: Protection of the Environment: Ensure compliance with legal requirements and any others we may voluntarily adopt. Identify and assess the environmental risks of our activities, acting efficiently to prevent and minimise them. Promote eco-efficiency, a rational use of natural and energy resources and minimisation of the environmental impact of our activities and those of our clients. Include environmental criteria in business processes, focusing on protecting the environment. Guarantee continuous improvement in the environmental performance of our activities, by preventing pollution and using environmental management systems and the best technology available. Contribute towards mitigating and adapting to climate change through the promotion of efficient use of gas in our processes and those of our clients and collaborators. Foster the conservation and biodiversity of ecosystems and historical or artistic heritage, especially in the areas of our group s facilities. Provide transparent information to our stakeholders on the group s environmental impacts and performance. 5
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