Corporate governance
Separation of powers
  • Culmination of the process for the definitive separation of the positions of Chairman of the Board and Chief Executive Officer (CEO).
  • Modification of the Regulations of the Board of Directors following the separation of the positions of Chairman and Chief Executive Officer to incorporate the most recent recommendations in corporate governance.
Commitment to transparency
  • Publication on the website of the Company’s corporate governance story since it went public in 1999.
  • Approval of the ‘Criteria for communication with shareholders, investors and proxy advisors’.
  • Dissemination and communication actions for our stakeholders regarding corporate governance matters.
  • Inclusion in the Dow Jones Sustainability Index, with a high score in the section on Corporate Governance.
  • Best European Utility in Corporate Governance, awarded by the prestigious English publication ‘Ethical Boardroom Magazine’.
  • Integrity Model
    • Implementation of a new Compliance System including best practices in this field.
    • Updating of the Comprehensive Risk Management Policy.
    Management Approach
    Sustainability Indexes and Recognitions
    • 'Silver Class' distinction in 'The Sustainability Yearbook 2017' from RobecoSAM.
    • The Company retained the European Seal of Excellence 500+.
    • Consolidation of the Company’s presence in the Dow Jones Sustainability World and Dow Jones Sustainability Europe Indexes, improving its overall score and leading the Electric Utilities sector in nine areas of sustainability.
    • Maximum score (100 points) in the 'Commitment to Stakeholders' criterion of the Dow Jones Sustainability Index.
    • 8.2 out of 10 average overall satisfaction of stakeholders.
    Corporate Responsibility
    • Existence of a Corporate Responsibility Policy approved by the Board of Directors and of a Corporate Responsibility Plan approved by the Appointments and Remuneration Committee.
    • Annual corporate responsibility programme approved by the Sustainability Steering Committee: 96% overall fulfilment of the 2016 programme (fulfilment linked to a management goal).
    • Design of the new Sustainability Model of the Red Eléctrica Group, whose implementation is scheduled for 2017.
    • Model aimed at contributing to the attainment of the United Nations Sustainable Development Goals.
    Sustainable Energy
    Sustainable Development of the Transmission Grid
    • Construction of 674 km of new lines and 61 new substation bays with significant actions performed on the following electricity backbone transmission lines: Asturias- Galicia, Aragon-Levante, Godelleta, Torremendo and Sabinal.
    • Development of interconnections between island systems: commissioning of the Majorca-Ibiza double link.
    Energy Efficiency
    • Carrying out projects such as PERFILA, ALMACENA or the Soria-Chira Pumped Storage Hydro Power Station geared towards achieving a more efficient management of the electricity system in the fields of demand management, smart grids or energy storage.
    Integration of Renewables
    • Safe integration of renewable energies to contribute to the reduction of air pollutant emissions, and to reduce Spain’s dependence on foreign energy.
    • 40% of the annual electricity demand covered with renewable energies (average of the last four years).
    Technological Innovation
    • Approval of a new innovation strategy, focused on four vectors: digitization, people, sustainability and technology.
    • Development of 76 R&D+i projects with an overall budget of 8.6 million euros in 2016.
    • Attainment of the award granted by EPRI ((Electric Power Research Institute) for research into the impact of energy storage on electricity systems. and, in particular, isolated systems.
    Creation of Value
    Financial Strategy
    • The financial policy is adapted to the new remuneration model, maintaining a diversified financial debt and a comfortable position of liquidity.
    • Financial debt is primarily long-term (96%) and mostly referenced (84%) at fixed rates: €4,949 M of Net Financial Debt.
    Sound Financial Results
    • Clear orientation towards the creation of value on an ongoing basis: €636.9 M net profit.
    • Stable growth and strengthening of operating efficiency: 76.9% of EBITDA margin.
    Shareholder Return
    • Maximising returns for shareholders and investors, offering an attractive dividend yield: Dividend of €0.8587 per share, 7% greater than in 2015.
    Healthy Workplace
    • Continued and progressive improvement in the levels of occupational health and safety, which is understood as physical, psychological and social well-being.
    • Significant improvement in accident rates of employees and third-party contractors.
    • Increase of 22.4% in occupational health and safety training compared to the previous year.
    • Red Eléctrica distinguished as one of the longest-standing Spanish recipients of the Family-Friendly Company Certificate (EFR).
    Diversity and Equality
    • Increase in the number women in the workforce and in managerial positions: 23.7% women in the workforce and 21.8% of in managerial positions.
    • Implementation of the action plan associated with the model for managing disability in the workplace: 2.7% of people with a disability (includes people in the workforce and LGD Agreements Law on the Rights of People with Disabilities)
    Talent Management
    • Global talent management model for employee training and development: More than 138,000 training hours in 2016 (82 hours per employee).
    • Boosting internal promotion: 87.5% of appointments to management positions covered via internal promotion in 2016.
    • Creation of the new corporate university 'Campus Red Eléctrica', whose launch is scheduled for 2017.
    Stable and Quality Employment
    • Commitment to internal employability of people during their time as professionals and employees of the Company through integration, development and mobility programmes: 99.8% permanent contracts and a low overall undesired external turnover rate (2.8%)
    Community Ties
    • Responsibility with the socio-environmental environment is carried out with the vision of creating shared values with society.
    • Collaboration with local administrations: 35 collaboration agreements with autonomous communities and local councils for the execution of socio-economic, environmental, educational and cultural development projects.
    • Development of relationships based on trust and ongoing dialogue to facilitate the implementation of projects in the territory: 68% of agreements reached with landowners are amicable.
    Investment in the Community
    • Social contribution aimed at improving the well-being and progress of the communities in which the company’s facilities are located: €6.4 M contribution to society.
    Social Commitment
    • Undertaking projects and initiatives of a social, cultural, environmental, educational and volunteer corporate nature: Over 250 social actions geared towards the socio-economic development of the territory.
    Tax Transparency
    • Tax information transparency and tax contribution through the payment of taxes in the different countries in which the Red Eléctrica Group operates: €681 M Total Tax Contribution, with Spain having the highest tax contribution (98%).
    Dialogue with Stakeholders
    Shareholders and Investors
    • Transparent and fluid communication, facilitating relevant corporate information demanded by these groups: 1,027 enquiries from shareholders dealt with and 546 meetings with analysts and investors.
    Clients and Market Agents
    • Compliance with legal requirements regarding communication and the publication of information, guaranteeing transparency, integrity and disclosure timelines: 8.3 out of 10, level of satisfaction of clients and market agents.
    • Sustainable supply chain management model: transparency in management and integration of corporate responsibility criteria in the procurement strategy.
    • 91% of purchases from suppliers with their head office in Spain and 98% of our purchases made with European suppliers.
    • Red Eléctrica distinguished as ‘Top Performer’ for the responsible integration of social and environmental factors in the supply chain, ranking among the 20 leading companies worldwide.
    The Media
    • Dissemination of activities, projects and initiatives undertaken by the Company, with particular emphasis on its commitment to sustainability: 64 press releases issued (33% regarding sustainability projects).
    The Environment
    Environmental Management
    • Carrying out all activities following strict environmental criteria in accordance with the principles adopted in its Environmental Policy: 23 million euros in environmental expenditure and 87% fulfilment of the 2016 environmental programme.
    Integration in the Environment
    • Making facilities compatible with the environment, through dialogue with stakeholders and applying preventive and corrective measures to minimise possible impacts on the environment: Environmental assessment of all projects.
    • Carrying out of the HABITAT project (2015-2020): Monitoring the interaction of power lines and natural habitats of community interest.
    • Implementation and development of a biodiversity strategy and an action plan that covers all the activities of the Company.
    • Minimization of the risk of collision of birds with lines: 3,040 km of electricity line marked with bird flight diverters (3% more than the previous year).
    • Carrying out of biodiversity conservation projects: 'Red Eléctrica Forest' project and ‘VEGETA’ project.
    Climate Change
    • Implementation and development of a climate change strategy and action plan.
    • Contribution to a sustainable energy model through the maximum integration of renewable energies: 40.8% of the electricity demand covered by renewables in 2016.
    • Reduction of the carbon footprint: target for 2020 to reduce or offset 21% of the Company's emissions compared to 2010.