Sustainability

Society: creating shared value

Red Eléctrica considers social action as a key element of its corporate responsibility policy that includes a set of projects and actions whose objective is to create a positive impact on society and its environment, promoting the progress and well-being of the communities and areas in which its facilities are located and helping to facilitate the development of a sustainable energy model.

The social action of Red Eléctrica is aligned with the Company’s corporate values and corporate strategy and aims to strengthen the relationship of trust between the Company and the community, through the creation of value, as a responsible company, going well beyond the obligations derived from its activity. The main lines of social action with which Red Eléctrica contributes to the community are grouped mainly in the categories of dissemination actions regarding the operation of the electricity system, socio-economic development of the territory in which Red Eléctrica’s facilities are located and conservation of natural heritage.

pdf Principles and priorities of Red Eléctrica’s social action. Document approved by the Management Committee on 17 April 2015. (PDF, 197 KB).

 

Creating shared value

Red Eléctrica is committed to creating shared value as a guiding principle of its activity.

Red Eléctrica, aware of the great interdependence between the Company and society, focuses its activities on actions and investments aligned with its business goals which, in addition to generating value for the Company, impacts positively on the territory and its inhabitants, either at a social, economic or environmental level. In this way, the Company contributes to the promotion of a more sustainable and prosperous society within a socioeconomic context that favours the consolidation and expansion of the Company’s business base.

How is shared-value creation articulated in Red Eléctrica de España?

How is shared-value creation articulated in Red Eléctrica de España?

Red Eléctrica embraces and elaborates the creation of shared value through all its organizational units going far and beyond the areas directly linked to corporate social responsibility. A noteworthy example in this regard is the electricity interconnection between Spain and France.

Electricity interconnection between Spain and France: a unique case of creating shared value on multiple levels

CHARACTERISTICS OF THE PROJECT

  • Design and execution: Inelfe, a company owned by REE and RTE. Start-up of commercial operations: October 2015.
  • Length: 64.5 km linking up the municipalities of Santa Llogaia (Spain) with Baixas (France).
  • Layout: buried in concrete trench except for an 8.5-km tunnel section crossing the Pyrenees.
  • Technology: direct current with stations converting to alternating current at the ends.
  • Line capacity: 2,000 MW (largest-capacity direct-current interconnection line in the world).
  • Interconnection capacity: 2,800 MW (duplicates commercial capacity prior to interchange with France).
  • Overall cost: 700 M€, of which the European Union funded 225 M€. Project declared to be of European interest.
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CREATION OF VALUE ON A EUROPEAN SCALE

  • Reinforcement of security, stability and power supply quality in Spain and France.
  • Contribution to consolidating the European electricity grid. Progress towards internal energy market.
  • Increase in competitiveness of electricity markets and decrease in generation costs.
  • Improved sustainability: greater capacity for integrating renewable energies generates environmental benefits and reduces dependency on fossil fuels. Savings in CO2 emissions are evaluated to be 2.3 million tonnes by 2020.
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CREATION OF VALUE FOR RED ELÉCTRICA DE ESPAÑA

  • Development of the transmission grid, meeting the targets set by planning according to the company’s mission.
  • Stimulus for R&D & Innovation: the interconnection has entailed the development of 7 technological innovation projects.
  • Positioning as a technological standard, given the pioneering nature of the project on an international scale.
  • Development of professional capabilities: 225 employees involved in a unique and complex project.
  • Reinforcement of links with the French transmission operator, thanks to the creation of the joint company Inelfe as the project’s executor.
  • Economic return on investment, through remuneration regulated by the Ministry, taking construction, operation and maintenance costs into account.

OTHER VALUE-CREATION ELEMENTS

  • Strengthening of relations between Spain and France.
  • A standard in cross-border cooperation.
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CREATION OF VALUE FOR THE LAYOUT’S NEIGHBOURING TERRITORY

  • Reinforcement to guarantee power supply for the Girona regions, which are highly conditioned by tourism seasonality and geographical location.
  • Stimulus for social and economic development, promoting the establishment of businesses and dynamising the territory.
  • Guarantee for the operation of the high-speed train connecting Spain and France.
  • Creation of direct and indirect jobs in the Empordà region during the execution of the works: 100 jobs created and 20 M€ allocated to SMEs associated with the project.
  • Direct and continued collaboration in the territory’s social and cultural sphere.
  • Optimisation of territorial registration, through participative dialogue with the different stakeholder groups. 181 commitments acquired for minimising environmental impact.
  • High rate of amicable agreements reached with the owners of the affected lands (93%).
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Contribution in 2015

In 2015, Red Eléctrica’s contribution to social actions totalled €6,663,047, an amount resulting from applying the LBG Methodology and undergoing the assurance process of the model. This figure represents 1,21% of the 2015 net profit.

Logo of LBG LBG Assurance Statement 2015. (PDF, 42 KB)

Contribution 2015 - Type of contribution. 16% Time, 1% In species, 8% Management costs, 75% Cash. - Reason for the contribution. 59,1% Community investment, 0,4% Charitable gifts, 40,5% Commercial initiatives in the community - Areas of contribution. 37,7% Socioeconomic development, 17% Environment, 17% Art and culture, 5,6% Social wellfare, 0,9% Other and 21,4% Education.

 

LBG methodology

Red Eléctrica has been a member of the Grupo LBG España (London Benchmarking Group) since November 2014 and uses the LBG methodology to measure and report on their contribution to society. It is an international benchmark model that unifies criteria regarding the classification, management, measurement and communication of the initiatives carried out in the community.

In 2011, the Dow Jones Sustainability Index recognised LBG methodology as a good practice to report on corporate social action.