11.1Reporting principles

This is the fourth annual report published by Madrileña Red de Gas, corresponding to the year 2024, published in June 2025.

This report has been prepared in accordance with GRI Standards, considering GRI 1: Foundation 2021, GRI 2: General Disclosures 2021, and GRI 3: Material Topics 2021 Universal Standards, the applicable Topic Standards in accordance with the material topics, and the Sector Standard GRI-11 Oil and Gas Sector 2021.

The Board of Directors of Madrileña Red de Gas, as the highest governance body, has reviewed and approved this report through its president and representative.

The principles for the preparation of this report, contemplated in GRI 1: Foundation 2021 Standard, are described below.

Accuracy

The information reflected in the report has been cross-checked and is sufficiently detailed to allow for an evaluation of the impacts caused by Madrileña Red de Gas’s activity.

All information provided covers the reporting period, as well as its evolution over the last three years (2022, 2023, and 2024).

Balance

The information presented fairly represents the positive and negative impacts of the organization, without bias. Trends are also presented to show the evolution of different topics over time.

The priority of each topic is evident in the level of detail for each aspect.

Clarity

The information is presented in a way that is accessible and understandable, structured in tables and diagrams, and includes graphic information to simplify its reading and comprehension.

Comparability

The information provided allows for the analysis of changes that have occurred in the company over time, as well as the analysis of impacts compared to other organizations.

Completeness

The information provided is sufficient to evaluate the impacts of Madrileña Red de Gas during the reporting period.

Sustainability context

The report has been prepared based on the materiality review conducted in 2023, considering the internal and external sustainability context, along with the voice of stakeholders. The structure and content present Madrileña Red de Gas’s impacts on the pillars of sustainability: society, the environment, and the economy, along with the policies, strategy, and actions being carried out, always framed within its commitment to sustainable development.

Timeliness

It covers Madrileña Red de Gas’s activities in the period between January 1 and December 31, 2024, with annual publication foreseen.

Verifiability

The information collected is recorded, compiled, and analyzed in a way that ensures its veracity and quality, ensuring the application of the reporting principles previously outlined.

The contact point for questions related to this report and the information presented is: sostenibilidad@madrilena.es

11.2Information update

• Regarding economic performance data, the methodology for calculating it was modified in 2024. The calculations have been prepared under Spanish regulations (Spanish General Accounting Plan), and the company’s annual accounts are no longer prepared under international IFRS regulations. Only updated information based on this methodology is available for 2023 and 2024, so it cannot be compared with data from previous years (GRI 201-1 Direct economic value generated and distributed 2016).
• The sustainability rating methodology (ESG pillars) of the external tool for the registration and pre-qualification of Madrileña Red de Gas suppliers has changed compared to previous years. The results for 2022 and 2023 have been adapted to the new methodology to allow for comparison with 2024 (GRI 308-2 Negative environmental impacts in the supply chain and actions taken 2016 and GRI 414-2 Negative social impacts in the supply chain and actions taken 2016).

11.3GRI content index

Statement of use	Madrileña Red de Gas S.A.U has prepared this report in accordance with GRI standards for the period between January 1, 2024 and December 31, 2024
GRI 1 used	GRI 1: Foundation 2021
Applicable GRI Sector Standard (s)	GRI 11: Oil and Gas Sector 2021

 

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GRI STANDARD / OTHER SOURCE	DISCLOSURE	LOCATION	OMISSION	GRI SECTOR STANDARD REF. NO.
General disclosures
GRI 2: General Disclosures 2021	2.1 Organizational details	6 www.madrilena.es/quienes-somos/	A gray cell indicates something that does not apply. This only relates to the ‘Omission’ and ‘GRI Sector Standard ref. no. columns.
	2.2 Entities included in the organization’s sustainability reporting	141
	2.3 Reporting period, frequency and contact point	141, 142
	2.4 Restatements of information	142
	2.5 External assurance	153
	2.6 Activities, value chain and other business relationships	86, 87, 88
	2.7 Employees	121 – 122
	2.8 Workers who are not employees	“480 workers (6 interns + 474 workers from contractor companies) 132 – 139
	2.9 Governance structure and composition	10, 11, 12, 13, 16, 17, 19
	2.10 Nomination and selection of the highest governance body	12, 13
	2.11 Chair of the highest governance body	12, 13
	2.12 Role of the highest governance body in overseeing the management of impacts	14, 15, 16, 29, 30
	2.13 Delegation of responsibility for managing impacts	14, 15, 16, 18, 23, 28, 42, 48
	2.14 Role of the highest governnace body in sustainability reporting	14, 15, 16, 141
	2.15 Conflicts of inerest	23
	2.16 Communication of critical concerns	25, 48, 49, 116, 118, 119
	2.17 Collective knowledge of the highest governance body	15
	2.18 Evaluation of the performance of the highest governance body		Information not available or incomplete. Currently, there is no procedure for evaluating the performance of the highest governance body regarding its oversight of the management of the organization’s impacts on the economy, the environment, and people. Proposals to improve the performance evaluation process, through internal self-assessment and external verification, have been analyzed for future fiscal years.
	2.19 Remuneration policies	17, 18
	2.20 Process to determine remuneration	17, 18
	2.21 Annual total compensation ratio	131
	2.22 Statement on sustainable development strategy	4, 5
	2.23 Policy commitments	14, 15 20, 21, 22, 29, 30, 31, 89, 90 https://madrilena.es/sostenibilidad/
	2.24 Embedding policy commitments	28, 32, 33, 40, 41, 42, 43, 44, 134
	2.25 Processes to remediate negative impacts	116, 117, 118, 119, 120 https://madrilena.es/compromiso/ https://www.madrilena.es/como-lo-estamos-haciendo/
	2.26 Mechanisms for seeking advice and raising concerns	24, 25, 46, 47, 49, 116, 118, 119 https://www.canaldedenuncias.com/es/madrilena https://www.madrilena.es/como-lo-estamos-haciendo/
	2.27 Compliance with laws and regulations	20
	2.28 Membership associations	49, 50, 57
	2.29 Approach to stakeholder engagement	39, 45, 46, 47, 48, 49, 65, 114, 115, 116, 118, 120, 123, 136
	2.30 Collective bargaining agreements	123
Material topics
GRI 3: Material topics 2021	3-1 Process to determine material topics	39
	3-2 List of material topics	39
Ethics and legal compliance
GRI 3: Material topics 2021	3-3 Management of material topics	20-31		11.20.1
GRI 205: Anti-corruption 2016	205-1 Operations assessed for risks related to corruption	25, 26		11.20.2
	205-2 Communication and training about anti-corruption policies and procedures	27, 28		11.20.4
	205-3 Confirmed incidents of corruption and actions taken	23, 24		11.20.3
Sustainability governance
GRI 3: Material topics 2021	3-3 Management of material topics	10-20, 33-38, 40-44
GRI 2: General disclosures 2021	2.9 Governance structure and composition	10, 11, 12, 13, 16, 17, 19
	2.22 Statement on sustainable development strategy	4, 5
Own	Sustainability Director Plan	40 to 44
Climate adaptability, resilience and transition
GRI 3: Material topics 2021	3-3 Management of material topics	55 to 62		11.2.1
GRI 201: Economic performance 2016	201-2 Financial implications and other risks and opportunities from climate change		Information not available or incomplete. Information on the costs of measures taken to manage the risk or opportunity is not available. Efforts will be made to gather this information for the next report.	11.2.2
GRI 305: Emissions 2016	305-5 Reduction of GHG emissions	94 to 96		11.2.3
Propia	Climate risks and opportunities	55
	Adherence to the emissions reduction initiative: OGMP 2.0	57		11.2.4
	Green energy promotion	58-62
Asset integrity and critical incident management
GRI 3: Material topics 2021	3-3 Management of material topics	72-75		11.8.1
GRI 306: Effluents and waste 2016	306-3 Significant spills	There have not been any significant spills throughout 2024.		11.8.2
Own	Evolution of emergency response times	74
Cybersecurity
GRI 3: Material topics 2021	3-3 Management of material topics	64-72
Own	Communications received regarding data protection	66
	Evolution of Madrileña Red de Gas’s cybersecurity maturity level	69
	Risk rating of Madrileña Red de Gas critical suppliers	71
Economic-financial risks
GRI 3: Material topics 2021	3-3 Management of material topics	63-64
Own	Annual accounts audit		Confidentiality restrictions. This information is not public. Its disclosure could jeopardize the security of sensitive company-related information. The company’s annual accounts can be consulted at the following link: https://www.madrilena.es/investors/
Regulatory risks
GRI 3: Material topics 2021	3-3 Management of material topics	52-54
GRI 2: General disclosures 2021	2.28 Membership in associations	49, 50, 57
Own	Madrileña Red de Gas situation regarding ESRS compliance requeriments	37
Own	Adherence to the emissions reduction initiative: OGMP 2.0	57
Economic and financial value creation
GRI 3: Material topics 2021	3-3 Management of material topics	63 to 77
GRI 201: Economic performance 2016	201-1 Direct economic value generated and distributed	77		11.14..2
Own	Net amount of turnover (thousands of €)	75
	EBITDA (thousands of €)	76
	Balance sheet as of December 31, 2024 (thousands of euros)	76
Development and extension of the distribution network
GRI 3: Material topics 2021	3-3 Management of material topics	78 to 86, 104
GRI 203: Indirect economic impact 2016	203-1 Investments in infrastructure and supported services	104		11.14.4
Own	Net growth of supply points	78
	Evolution of the network	79
	2024 new connections by market type	80
Reliability, supply continuity, and customer orientation
GRI 3: Material topics 2021	3-3 Management of material topics	108 to 120
Own	% completion of maintenance plan and number of action performed	108
	Field excellence	112, 113
	Evolution of customer satisfaction index: CSAT (Customer Satisfaction Score) and GMB (Google My Business)	116
Extension of ESG criteria to the supply chain
GRI 3: Material topics 2021	3-3 Management of material topics	89 to 92		11.12.1 11.13.1
GRI 409: Forced or compulsory labor 2016	409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor	90		11.12.2
GRI 414: Supplier social assessment 2016	414-1 New suppliers that were screened using social criteria		Information not available or incomplete. Although this information was available in previous periods, it could not be collected during 2024. It will be resumed in future periods.	11.12.3
GRI 407: Freedom of association and collective bargaining 2016	407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk	90		11.13.2
408: Child labor 2016	408-1 Operations and suppliers at significant risk for incidents of child labor	90
GRI 308: Supplier environmental assessment 2016	308-2 Negative environmental impacts in the supply chain and actions taken	92
GRI 414: Supplier social assessment 2016	414-2 Negative social impacts in the supply chain and actions taken	92
Own	Evolution in the ESG rating of critical suppliers	92
Emissions, pollution, and fight against climate action
GRI 3: Material topics 2021	3.3. Management of material topics	93 to 100		11.1.1 11.3.1
GRI 302: Energy 2016	302-1 Energy consumption within the organization	99	Information not available or incomplete. No information is available regarding the total consumption of fuels from renewable or non-renewable sources. Efforts will be made to collect this information for future reports. Madrileña Red de Gas does not sell energy, so this information is not applicable.	11.1.2
	302-2 Energy consumption outside of the organization		Information not available or incomplete. No information is available to answer this content. Efforts will be made to collect this information for future reports.	11.1.3
	302-3 Energy intensity			11.1.4
GRI 305: Emissions 2016	305-1 Direct (Scope 1) GHG emissions	94 to 96		11.1.5
	305-2 Energy indirect (Scope 2) GHG emissions)	94 to 96		11.1.6
	305-3 Other indirect (Scope 3) GHG emissions	94 to 96		11.1.7
	305-4 GHG emissions intensity	97		11.1.8
	305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions	97		11.3.2
GRI 416: Customer Health and Safety 2016	416-1 Assessment of the health and safety impacts of product and service categories	72 to 75, 108 to 111
Own	GHG emissions projection (2021-2050)	56
	Main mitigation actions for GHG emissions reduction	98
Energy access and economic impact
GRI 3: Material topics 2021	3-3 Management of material topics	104 to 108		11.14.1
GRI 201: Economic Performance 2016	201-1 Direct economic value generated and distributed	77		11.14.2
GRI 202: Market Presence 2016	202-2 Proportion of senior management hired from the local community	124		11.14.3
“GRI 203: Indirect Economic Impacts 2016	202-2 Proportion of senior management hired from the local community	104		11.14.4
	203-2 Significant indirect economic impacts	107 to 108		11.14.5
GRI 204: Procurement Practices 2016	204-1 Proportion of spending on local suppliers		Information not available or incomplete. While this information was available in previous periods, it could not be collected during 2024. It will be resumed in future periods.	11.14.6
Occupational safety and health
GRI 3: Material topics 2021	3-3 Management of material topics	135 – 140		11.9.2001
GRI 403: Occupational Health and Safety 2018	403-1 Occupational health and safety management system	138		11.9.2002
	403-2 Hazard identification, risk assessment, and incident investigation	139, 142		11.9.2003
	403-3 Occupational health services	144		11.9.2004
	403-4 Worker participation, consultation, and communication on occupational health and safety	138-139		11.9.2005
	403-5 Worker training on occupational health and safety	140		11.9.2006
	403-6 Promotion of worker health	139		11.9.2007
	403-7 Prevention and mitigation of health and safety impacts directly linked by business relationships	139		11.9.2008
	403-8 Workers covered by an occupational health and safety management system	136		11.9.2009
	403-9 Work-related injuries	137-138		11.9.10
	403-10 Work-related ill health	137-138		11.9.11

 

GRI Sector Standard Topics considered non-material
GRI Sector standard title	Topic	Explanation
GRI 11: Oil and Gas Sector 2021	11.17 Rights of indigenous peoples	The scope of Madrileña Red de Gas’s operations, the Autonomous Community of Madrid, where even its suppliers are fundamentally local, leads us to believe that no material impact can exist.
	11.19 Anti-competitive behavior	Madrileña Red de Gas’s business is regulated; unfair competition would be directly linked to corruption.
	11.21 Payments to governments	Considering the regulations applicable to Madrileña Red de Gas in Spain, we would again be strictly talking about corruption.
	11.22 Public policy	Spanish legislation does not allow direct promotion of public policies by private companies. As with the two previous requirements, we would be dealing with cases of corruption.
	11.4 Biodiversity	Following the double materiality evaluation and prioritization process, in accordance with Madrileña Red de Gas’s methodology, these topics proposed by the GRI 11: Oil and Gas Sector 2021 sector standard and initially considered relevant, have not proven material for the company.
	11.5 Waste
	11.6 Water and effluents
	11.7 Closure and rehabilitation
	11.10 Employment practices
	11.11 Non-discrimination and equal opportunity
	11.15 Local communities
	11.16 Land and resource rights
	11.18 Conflict and security

11.4External assurance

To ensure conformity with the principles and guidelines specified by GRI and that the information collected herein is truthful, this report has been subjected to external and independent verification by the auditing and certification entity Bureau Veritas S.A., with the secretary of the Audit and Risk Committee actively participating in this process, representing the highest governing body.

Said entity declares the conformity of this sustainability report with the principles and guidelines specified in the GRI Standards and the reliability of the information contained therein.