Creating economic, social and environmental value
Ethical compliance and Human Rights
- Design of the Compliance Model for Enagás Group.
- Updating of the Crime Prevention Model in Spain, adapting it to changes in the Criminal Code and Circular 1/2016 of the Attorney General’s Office.
- Implementation of the Crime Prevention Model in Mexico.
- Approval of the new version of the Internal Code of Conduct regarding matters related to Securities Market, adapted to the new regulatory changes.
- Continuous monitoring of legal compliance risks and reputational risks of business partners (ethical and compliance risks).
- Incorporation of Human Rights impact analysis with regard to supplier management and the management of affiliates.
- Approval and implementation of the new Compliance Model for Enagás Group.
- Approval of the Crime Prevention Model in Spain.
- Continuous training and dissemination of the Crime Prevention Model in Spain.
- Roll-out of model for compliance in international subsidiaries with effective management control.
- Inclusion within the scope of the audits of partners that Enagás carries out on affiliates regarding ethics and criminal responsibility.
- Conduct internal audits on fraud prevention on the TLA Altamira and TAP affiliates.
- Definition of the level of risk for the incorporation of requirements related to respect for Human Rights in the supply chain.
- Adherence to the Code of Good Tax Practices.
- Publication of a report on the total tax contribution for 2016 in the respective countries where profits are generated.
of the significant agreements
with suppliers include clauses
containing issues regarding
communications received via
the Ethics Channel
of employees received
training in anti-corruption
policies and procedures in the
past two years
of Enagás’ employees received
training on the Code of Ethics
in 2015 and 2016
71% of employees received training in Human Rights (15,191.9 hours)(1)
(1) Training in at least one of the following types of courses: Equality and Anti corruption, Human Rights (general) and Prevention, and the Environment.
When developing its activities, Enagás ensures that ethics and integrity are respected via the following policy, procedural and regulatory framework:
The Code of Ethics sets out the conduct that is expected from all the professionals in the company, irrespective of their responsibilities and their geographic or functional location. The Code is implemented via policies, regulations, procedures and controls.
The policies set out the principles and commitments of the main management areas of the company. The corporate directives define the principles of action for specific management areas. In 2017 we are working on the creation and approval of corporate directives in the spheres of climate change and diversity.
Since the 2010 Reform of the Spanish Criminal Code, which introduced the criminal liability of legal persons in Spain, Enagás has established a Crime Prevention Model and is developing a Transversal Compliance Model with international reach.
The Enagás Compliance Model will be managed by a compliance function at the core of which is the Compliance Department: This is supported by synergistic functions and other corporate support areas including the participation of local compliance officers located in the different countries where Enagás operates.
According to the company’s policy, procedural and regulatory framework, the Enagás Compliance Model is structured around three documents, which form the core of the model:
- The Compliance Policy sets out a series of compliance commitments that all company professionals must comply with, irrespective of their professional category or the country where they carry out their activities.
- The General Compliance Standard develops what is set out in the Compliance Policy and Enagás’ Code of Ethics. It outlines the compliance responsibilities that, according to each professional category, are assigned to Enagás’ professionals.
- The Compliance Management Procedure, set out according to the action guidelines outlined in ISO 19600 on Compliance Management Systems and based on the principle of proper control, aims to fulfil the commitments described in the Policy and in the General Standard of Compliance.
The model defines double line reporting in order to have a Compliance Function that is coordinated on a global level; this mitigates the risks of non-compliance in the international arena which in turn can lead to serious reputational consequences. This double line reporting is on the one hand, that reported by the corporate areas and, on the other hand, that reported by compliance officers in the different subsidiaries. Loss of information and inconsistencies are therefore avoided.
Enagás has established a Crime Prevention Model and is developing a Transversal Compliance Model with international reach
As part of the Compliance Model, Enagás has a Crime Prevention Model that acts as the core of the company’s criminal compliance, notwithstanding the existence of policies, procedures and controls that illustrate its content and “contribute to preventing crimes being committed by any person who is part of Enagás as well as, in their respective areas of relation, by contractors, suppliers, business partners and any third party that collaborates with or acts on their behalf.” The Crime Prevention Model in Spain includes the following elements:
- Potential offences of criminal risk that are considered when taking into account the activity of a company with the characteristics of Enagás:
Enagás’ Crime Prevention Model is the fundamental core of the company’s criminal compliance
- Roles and responsibilities defined by a governance structure aligned with art. 31 bis 2.1 and 2 of the Criminal Code. The role of the Director of Compliance has thus been redefined with regard to the reception, prior study and investigation of complaints, as has the Compliance Department as a criminal prevention body.
- Map of risks and activities exposed to criminal risk.
- Inventory of controls, both general and specific, that exist at Enagás that provide preventive virtuality in the face of potential offences being committed.
- Disciplinary system articulated around compliance with the Code of Ethics which ensures compliance with the model via disciplinary measures.
As an example of the existing controls at Enagás to prevent potential offences of criminal risk, the following controls have been implemented to ensure that the express prohibition of making donations to political parties is respected.
- In terms of general controls, the following regulation sets out the prohibition:
- Enagás Group Code of Ethics.
- Segregation of duties and a structure to limit powers.
- Anti-fraud, corruption and bribery policy.
- Sustainability and Good Governance policy.
- Internal Control over Financial Reporting System (ICFR).
- General standard for hiring external advisors.
In addition, there are specific controls in the form of procedures to act in those areas where, due to their nature, there may be a greater risk of breaching the prohibition:
- The procedure for the management of sponsorships, patronage and donations, sets out the responsibilities regarding:
- Authorisation of sponsorship collaborations will be done by the Sustainability Committee which reports to the Board of Directors and is responsible for approving all financial donations.
- Follow-up of both the fulfilment of the sponsorship collaboration conditions as well as the collaboration agreement (the results of this analysis will be taken into account when analysing subsequent collaboration requests).
- The procedure for authorisation and accounting of treasury movements which regulates the correct reception, verification, authorisation, registration and accounting of documents supporting the collection and payment movements of Financial Institutions.
- The procedure for the management of offering and accepting gifts establishes that employees of the Enagás Group may not directly or indirectly carry out, offer or receive any payment in-kind or any other benefit that, due to its value, its characteristics or its circumstances, may reasonably alter the development of the business, administrative or professional relationships in which they take part. Gifts in cash or equivalent are expressly prohibited.
- The controls included in the Internal Control System regarding Financial Information such as the control of financial management and support services.
Enagás professionals receive training on the Code of Ethics that encompasses such key issues as the fight against fraud, corruption and bribery, fiscal responsibility and respect for Human Rights, among others. It is a tool for preventing irregularities, including those that could constitute crimes, in those spheres. The course is structured as follows:
- Practical cases for each guideline on conduct in the Code of Ethics.
- Procedures for reporting and querying cases of non- compliance.
- Responsibility for the management of reports (Ethical Compliance Committee).
Since its launch, 91% of employees have taken the Code of Ethics course. Furthermore, one of the most highly valued aspects of the workplace climate survey carried out in 2016 (see the chapter on ‘Human Capital Management’) was the acknowledgement by professionals regarding the existence of the Ethics Channel to report inappropriate behaviour without fear of reprisal. This reveals the level of familiarity with the principles and guidelines on conduct expected by Enagás.
Next year, training in and dissemination of ethics and compliance aspects will continue, with particular emphasis on conduct constituting a crime (Crime Prevention Model)
Enagás has a Crime Prevention Model up and running in Mexico approved by the Board of Directors. In 2016, the diffusion of this model was initiated at a day of face-to-face training for Enagás Mexico staff.
Since its launch, 91% of employees have taken the Code of Ethics course
Enagás' Ethics Channel is a platform for querying and reporting irregularities or breaches of the Code of Ethics. The channel adheres to the following principles:
- Only reports that involve irregularities for which the company may be liable are processed.
- Access to the Ethics Channel and the processing of reports is procedurally regulated by and restricted to members of the Ethical Compliance Committee.
- Information concerning dismissed reports is deleted.
- Confidentiality prevails over anonymity.
- Reports received anonymously and/or via the channel are only processed if well-founded.
- The procedure for managing reports and consultations about irregularities or breaches of the Code of Ethics complies with the Personal Data Protection Act as regards the preserving, cancelling and blocking of data.
Electronic mailbox: email@example.com
Post addressed to any
member of the Ethical
Form available on the corporate Intranet
In 2016, three communications were received via the Ethics Channel:
- A suggestion regarding labour matters, not related to Compliance with the Code of Ethics, was conveyed to the department responsible for its management.
- Two reports related to Compliance with the Code of Ethics were dismissed expressly by the complainants.
In its Code of Ethics and the corporate policies which it comprises, Enagás sets out its commitment to ensuring compliance with Human Rights, in line with, among others:
- The International Bill of Human Rights.
- Fundamental Principles and Rights of the International Labour Organisation (ILO).
- OECD Guidelines for Multinational Enterprises.
Right to decent work
As well as guaranteeing decent work for our employees, we ensure that our suppliers provide all workers at their facilities with legal employment status: we request the necessary documentation and conduct audits.
Right to rest and leisure
Enagás improves and extends the periods and conditions of rest and leisure established in current legislation (flexibility in start times and lunch break, shorter workday during the summer and every Friday throughout the year, division of annual leave into a maximum of 3 periods, etc.).
Right to workplace non- discrimination and diversity
The Enagás Collective Bargaining Agreement prohibits the company from employing minors of under 16 years of age (Article 28).
Right to family life
Enagás improves and extends paid leave beyond the provisions of current labour regulations (birth of a child, breastfeeding or death of a close relative, special circumstances, etc.).
Right to freedom of opinion, expression and information
Enagás has various clear and transparent internal communication channels that allow workers to communicate with senior management.
Right to a safe working environment
Enagás' occupational risk prevention management system, certified under OHSAS 18001, provides mechanisms for identifying and preventing incidents (see the chapter on ‘Health and Safety’).
Freedom of association
Enagás employees can freely exercise their right to belong to trade unions in order to promote and defend their economic and social interests without this being the basis for discrimination, and any agreement or decision by the company contrary to this principle is deemed null and void (Article 64).
Right to collective bargaining
Enagás has approved a new Collective Bargaining Agreement aligned with the management of human capital (see the chapter on ‘Human Capital Management’). In addition, the company also enters into collective negotiations and carries out regular consultations with the legal representation of employees regarding working conditions, remuneration, dispute resolution, internal relations and issues of mutual concern.
Right to workplace non- discrimination and diversity
The company has a Diversity Plan and a Prevention and Action Protocol at the disposal of its employees for any situation of workplace harassment. This protocol provides a confidential channel for reporting workplace harassment (firstname.lastname@example.org).
The Enagás remuneration model factors in considerations of equality and non-discrimination, establishing differences due solely to the worker's position in the organisation and professional experience. Furthermore, the Enagás Collective Bargaining Agreement sets out different salary levels based exclusively upon objective work criteria.
Ratio of basic salary/average wage of women to men by employee category
Right to fair and favourable remuneration
Part-time employees receive a salary proportional to that of comparable full-time employees, with identical benefits. Furthermore, the minimum salary for an Enagás employee is more than double the statutory minimum wage in Spain.
Right to life, liberty and security of person
The company exercises due diligence when rendering its services in order to avoid defects that could harm the life, health or security of consumers or others that could be affected by the defective product, and complies with nationals laws and relevant international guidelines.
Right of minorities
Enagás ensures that owners and users of property affected by the company's acquisitions and activities receive appropriate compensation.
In 2016, an online training programme was launched for all Enagás employees for them to learn the company’s methods for ensuring compliance with Human Rights.
Human Rights are addressed using a continuous improvement approach aligned with our Sustainable Management Model.