Sustainability Report 2011 - 2012

HERA HOLDING Habitat, Ecología, Restauración Ambiental, S.L.Barcelona | Calle Numancia, 185, 6ª planta | 08034 Barcelona | T. +34 93 205 10 10Madrid | Calle Isla del Hierro, 7 - 1ª planta | 28703 San Sebastián de los Reyes, Madrid | T. +34 91 736 21 [email protected] | www. heraholding.com H

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Sustainability Report I 2011-2012

Small social initiatives can help recycle, upgrade and recover the world. Take a look at some of them in this Sustainability Report...

Estrategia y Análisis2

For queries or further information about this sustainability report please contact:

Neus Colom

Numancia 185, planta 6 · 08034 Barcelona

Tel. +34 93 205 10 10

[email protected]

FSC - Forest Stewardship Council

Design and production: www.fusion-creativa.com

English translation by Anne Barton de Mayor

Printed by NOVAGRAF EDICIÓ SLNE

Legal registration B-29118-2011

Barcelona, June 2013

3Table of contents

Table of contents

1 Strategyandanalysis 5 1. 1 Chairman’s foreword 5 1.2 Chief Executive Officer’s statement 7

2 Highlights 10 2. 1 Presence of the HERA Group 10 2.2 Key figures 11 2.3 2011-2012 highlights 12 2.4 Interview: ‘Restoration of a Kuwaiti oil field. HERA Group’s biggest soil remediation project’ 14

3 Reportparameters 16 3. 1 Report outline 16 3.2 Report scope 16

4 HERAGroup 18 4. 1 Recovery activities 23 4.1.1 From waste to materials/renewable energy 23 4.1.2 From wastewater to clean water 35 4.1.3 From emissions to renewable energy 4 1 4.1.4 From contaminated land to usable space 46 4.2 Disposal/Elimination activities 50 4.3 Logistics activities 55

5 Commitmenttostakeholders 57

6 Governance 76

7 Appendices 80 7. 1 Other necessary GRI figures 80 7.2 Basic GRI grid of contents 92 7.3 Glossary 95

Strategy and analysis4

5Strategy and analysis

The 2011-2012 period has been a time of ups and downs for our company. The downside has been the intensifying world economic crisis, which hit Spain very hard and reduced our turnover and earnings. Factory closures and declining domestic consumption resulted in a significant drop in the waste generated within the spheres of influence of our Spanish facilities.

On the upside, however, I must mention our participation in many public and private international tenders. HERA’s magnificent engineering prestige outside Spain has enabled us to bid for major contracts on a par with the biggest corporations in our industry. Our greatest achievement in this field is the soil remediation contract we were awarded by the Kuwait Oil Company. This contract is an incredible challenge in engineering terms and also as regards adapting to a new market with such different customs and habits. Dealing with local stakeholders is an extremely enlightening and enriching experience.

Our sustained growth in Latin America makes us optimistic about the investment made in recent years, and which has enabled us to become an integral part of local communities, in keeping with our determined commitment to collaborate with local focus groups and respond to their needs.

I’d also like to mention that during the years covered by this

report, we have continued to reorganise the Group’s business and structure. I have no doubt that this will help us cope better with any new challenges. We have merged some companies and liquidated others and, in general, put our business in order.

The main aim of this report – in addition to ensuring maximum transparency about our business, of course – was to achieve Global Reporting Initiative (GRI) level B, so we set ambitious targets as guidelines for many of our business areas. In future editions of our sustainability report, we are determined to attain the very highest GRI levels.

The great challenge of winning international contracts calls for even greater involvement with partners, suppliers, authorities and the local population in general. In this respect, a sustainability report is an immensely useful tool thanks to its standardised format recognised in countless spheres.

Pablo Solesio López-BoschChairman of the Board

Managing Director

Strategy and analysis

1.1Chairman’sforeword


The HERA Group seeks to contribute proac-tively to the world’s environmental, economic and social sustainability.

In particular, for the HERA Group, environ-mental sustainability means growth based on the following pillars:

Reduce:Use less energy and fewer materials in proces-ses and products.

Renew:Recycle waste and emissions and use re-newable, natural resources.

Respect:Acquire clean uses and sources of energy with minimum, non-hazardous emissions and waste.

Restore:Decontaminate and enhance natural, muni-cipal and industrial surroundings, offsetting and mitigating any negative effects, and recovering land.

Mission

To effectively close the cycle of resources by developing technologies and manage-ment systems designed to ensure they are constantly recycled.

Ouraimcannolongerbesimplytoavoidenvironmentalimpact.

Commitmenttopeople

Respect for people’s integrity and dignity. » Trust in people’s ability to create value. » Humility and goodness. » Independent, ethical decisions. » Flexibility, adaptability and trustworthi- »ness. Active link between the company and »its professionals. Dialogue and responsible conduct »between the company and its stake-holders.

Commitmenttoenvironmentalexcellence

Minimise environmental rucksacks and »carbon footprints. Sustainable management of basic »resources: materials, water, energy and land. On-going eco-innovation. »

Vision

Values


The HERA Group’s mission from the very start has been to provi-de first-rate services and techno-logy in the waste management industry. Our great challenge in recent years, however, has been marked by the end of an era in which waste was deemed to be merely worthless rubbish. HERA understands waste to be a re-source with great re-use and recovery potential.

2012. A year of transition

The period covered by this report was characterised by a worsening of the economic and financial crisis, causing a widespread downturn in production which in turn triggered a drop in the volumes of waste managed, particularly by our facilities in Spain. The impact of this reduc-tion resulted in an 18% decrease in our 2012 earnings. The crisis has not, however, been the only factor to adversely effect turno-ver: the year 2012 has been a year of transition for the Group with the completion of major cons-truction projects in Spain such as the Vallès Occidental waste treatment plant (WTP), and major international projects are at the initial phase, e.g. the Middle East soil remediation project (Kuwait) with a total budget of €45 million.

Cost cutting

Against this backdrop we have made great efforts to cut costs, resulting in more effective manage-ment of procurement and contract-ing. These measures as a whole resulted in cost reductions one and a half times greater than the

reduction in turnover, as a result of which our EBITDA fell by just 3%.

Our strategic aims: remain committed to R&D+i and international growth

We have continued to participate actively in R&D+i projects in conjunction with acclaimed research centres and universities, as demonstrated by the fact that in 2011, innovation and develop-ment subsidies were twice those of 2010. In this period, we worked hard on BioDigester Integra®, our own economically feasible tech-nology combining the best of a conventional controlled landfill and a biomethane plant. We also worked hard to find practical uses for the Biogás Natural® (biomethane) collected from our landfills and anaerobic digestion plants, i.e. converting it into hydrogen and upgrading it to almost 100% in fuel cells suitable for vehicles and industry.

In 2011, the sale of our plant in Chile improved our leverage and enabled us to focus our interna-tional growth on other markets considered to be strategic for the group in the short/long term, e.g. Brazil where our turnover has trebled thanks to the increase in our investment and environmen-tal services. We have started work in the Middle East (Kuwait) on the largest soil remediation project ever carried out in the region, which involves replanting 447,000m2, i.e. 60% of the entire remediated area, and reclaiming 2,000m3 of oil. For full details of this major project, see the inter-view on page 14 of this report.

Social considerations

I’d like to emphasise that our activities in the abovementioned countries, like our activities in Spain, work in conjunction with the local communities to raise environmental awareness by means of our environmental classrooms and guided tours of our facilities. In addition, when-ever possible, we do our utmost to ensure that our growth in said countries fosters non-discrimina-tion and sex equality. In this period, the percentage of women working at our South-American facilities increased by 76%.

Continuous improvement in drafting the Sustainability Report

The intention of this Sustainabili-ty Report is to offer an accurate portrayal of our considerable contribution to society, the economy and the environment. Therefore, in this edition, we have focussed on improving and increasing the in-house proce-dures designed to describe our activities more fully and clearly to our stakeholders so we have risen from Global Reporting Initiative level C to level B. We realise that there is still room for improve-ment in certain areas. In future editions, for example, we want to encourage our stakeholders to contribute more directly to the report and to work with them to produce a relevance survey to review and update the aspects of our business that they think are relevant.

1.2ChiefExecutiveOfficer’sstatement


Main risks and opportunities

Our activities involving the capture and upgrading of biogas from controlled landfills were affected by the reform of the Spanish energy industry instiga-ted in 2012 by Royal Decree 1/2012 which eliminated pre-as-signation and economic incenti-ves for renewable energies and cogeneration. Against this back-ground of falling revenue from the sale of renewable energy by existing facilities, we decided to cut costs and enhance efficiency in order to maximise electricity

production. We used other technologies developed by the Group to re-focus many of the products in our portfolio affected by this royal decree towards self-sufficiency or an increased use of biogas in non-electrical applications.

One clear example of these improvements is our commitment to making our facilities as self sufficient in energy as possible: doubling it during this period. Our commitment to environmen-tal sustainability is also shown by the 66% increase in the CO

2

emissions avoided by recycling

energy and materials. Another challenge for the next edition is to calculate the entire direct and indirect CO

2 emissions caused by

our activities.

In addition, to mitigate the impact of this reform, we have discovered alternatives ways of generating electricity using biogas. Our proprietary technolo-gy now enables Biogás Natural® to be used in the same circums-tances as gas natural: as biofuel for vehicles, or injected directly into the natural gas mains net-work, or to produce hydrogen with efficiency rates of almost 100%.

The new Spanish Law 22/2011 on waste and Contaminated Soils passed in this period initially caused some confusion in social, environmental and economic realms. Our main concern was to ensure that the waste manage-ment measures taken were in keeping with climate change strategies, and we submitted our opinion together with the Funda-ció Fòrum Ambiental. Our de-mands were incorporated into current legislation, which has redrawn the waste recovery scenario.

This law gives the recovery of energy from waste priority over disposal and confirms the efforts that HERA has been making to focus on physical recovery in recent years, as shown by the fact that recovery activities in 2012 were 12% higher than in 2011, and accounted for 46% of turno-ver, whereas disposal activities

accounted for 38%.

Before ending, I would like to highlight and thank the com-mitment, experience and efforts of all our employees to adapt to the changes imposed by today’s complex and adverse economic climate.

For all the above reasons we can look forward optimistically to the future for we have succeeded in laying solid foundations enabling us to adapt flexibly to change with fewer resources whilst contributing to sustainability both inside and outside the company.

Jordi GallegoHERA Group

Chief Executive Officer


WTP Vallès Occidental (Vacarisses, Spain)

Highlights10

Highlights

2.1PresenceoftheHERAGroup

FranceGermany

KoreaKuwait

Ukraine

Portugal

Chile

Colombia

Brazil

Argentina

Spain

Disposal/Eliminationactivities

Controlled landfills for hazardous and non-hazardous wasteDisposal of hazardous waste

Logisticsactivities

Hazardous waste transfer plants

Recoveryactivities

Fromwastetomaterials/renewableenergyMechanical biological treatmentBiogas generated by anaerobic digestion of organic matter: integra® biogester or biomethanisation Syngas made of gas captured from biomass and non-recycla-ble wasteRecovery of paint and solventsRecovery of precious metalsUpgrading of steel works powder (Óxidos Recumet® System)Upgrading of construction and demolition wasteIntegral management of old tyresUpgrading of WWTP sludge and leachate concentrate(Alximix® System)

FromwastewatertocleanwaterTreatment of leachatesTreatment of municipal and industrial wastewater

FromemissionstorenewableenergyBiogas capture and upgrading Conversion into Biogás Natural® (biomethane) for injection into gas grid or use as fuel for fleets of vehiclesProduction of hydrogen from Biogás Natural®

FromcontaminatedlandtousablespaceCutting-edge technology for soil remediation

11Highlights

2.2Keyfigures

2010 2011 2012

Employees

Turnover (€m)

EBITDA (€m)

Waste handled (mt)

Materials recovered (mt)

Soil decontaminated (mt)

Water treated for third parties (m3)

Leachates treated (m3)

Renewable electricity sold (kWh)

Electricity generated for own use (kWh)

Emissions avoided by energy upgrading and

material recycling (mt CO2)

531 418 444

96.30 90.75 74.80

13.50 13.00 12.57

1,855,966 1,603,765 1,464,286

29,312 77,768 75,320

375,000 327,000 363,000

1,166,671 366,593 301,586

119,192 358,100 156,918

47,245,126 40,577,025 46,232,025

9,214,142 24,929,041 24,172,426

57,723 95,606 103,565

2012

Comments »“Waste handled” in 2010 included decontaminated soil. This is not included in 2012 because it is not listed in the -European List of Wastes. A carbon heat emission factor of 0.98 kg CO -

2/kWh was used to calculate the emissions avoided by upgrading energy

to produce electricity. When calculating the emissions avoided by upgrading energy to produce heat, a factor of 2.15 kg CO

2/Nm3 was used.

When calculating the CO -2 emissions avoided by recycling materials, the EpE Protocol (EPA 2006) was used.

444employees

€74.80mTurnover

€ 12.57mEBITDA

1,464,286 mtWastehandled

75,320 mtmaterialsrecovered

363,000 mtsoildecontaminated

301,586 m3watertreatedforthirdparties

156,918m3leachatestreated

46,232,025kWhrenewableelectricitysold

24,172,426kWhElectricitygeneratedforownuse

103,565 mtCO2

Emissionsavoidedbyenergyupgradingandmaterialrecycling

Highlights12

2.32011-2012highlights

EnloMEDIOAMBIENTAL

EnloSOCIAL

A survey of psycho-social hazards was conducted •amongst 50% of the workforce in late 2012 in con-junction with the Employers’ Liability Insurance, to determine the possible impact of workers’ jobs on their health and wellbeing. On the whole, no signifi-cant findings emerged.

In Spain, 70% of employees are represented by Em-•ployees’ Committees.

Increase in the numbers of female employees in com-•parison with male employees: up by 76% in Latin Ame-rica and by 7% in Europe. At the Vallès Occidental WTP, women account for almost 30% of the work force.

The average age of employees in Latin America fell by •3% to 35.75 years old in 2012.

The Group continues to work in conjunction with lo-•cal communities to foster environmental awareness by providing environmental rooms and guided tours of its facilities.

Soil remediation project in the Middle East (Kuwait) •will decontaminate 703,000m2 of land and replant 60% of this area.

From 2011 onwards, the amount of electricity pro-•duced by our facilities for their own consumption has doubled, thanks particularly to the start of ope-rations at Vallès Occidental WTP which is 100% self sufficient in water and energy.

CO•2 emissions avoided by generating energy and

recycling materials increased by 66% between 2010 and 2011.

Greater involvement with product life cycles. The old tyre •treatment (OTT) division will produce and sell the latest gene-ration of tyre powder in Europe for use in manufacturing new tyres.

The Group has taken another step in diversifying its • Biogás Na-tural® applications by using it to produce upgradable hydro-gen with maximum fuel cell efficiency.

HERA’s active involvement in the “Waste and Climate Change •Think Tank” venture held by the Fundació Fòrum Ambiental, led to amendments being proposed for Spanish law 22/2011 on waste and contaminated land because it did not address the link between waste and climate change. Most of the proposed amendments were incorporated and the law is now in force.

ENVIRONMENTALaspects

SOCIALaspects

13Highlights

2011-2012 was a time of transition from a business model focused on Spain’s •domestic market to a more globalised HERA Group present in more regions of the world:

•MiddleEast(Kuwait):soil remediation.

•France(Tournan-en-Brie): construction of a mechanical/biological treatment plant.

•UnitedKingdom(Scotland): soil remediation.

•SouthKorea(Ulsan):construction of high-performance biogas produc-tion facilities using organic waste.

Exportation of leachate management savoir-faire to new markets. The first •leachate management plant using reverse osmosis, including treatment servi-ces, with an operating capacity of 100 m3/day began operating in Brazil under a lease agreement.

Maximum efficiency in the use of available resources has enabled savings of •€3 million.

Ever greater commitment to recovery activities which now account for 46% of •turnover, as opposed to disposal activities (38% of turnover).

Increased efforts on incorporating more efficient, innovative technologies. In •2010-11, R&D+i subsidies doubled. In this respect, the Group has adapted to the new economic climate by developing affordable waste management sys-tems: BioDigester Integra®.

ECONOMICaspects

Highlights14

2.4Interview|FERNANDOHERREROS

Restoration of a Kuwaiti oil field. HERA Group’s biggest soil remediation project.

‘We contribute to the sustai-nable growth of developing countries’

The economic boom that has characterised developing coun-tries such as China, Brazil, India, Mexico, etc, in recent years, has also caused their energy require-ments to soar, resulting in a considerable increase in the world demand for oil and conse-quently, an unprecedented hike in oil prices.

All this has multiplied the wealth of oil producing countries, parti-cularly those in the Persian Gulf (whose production costs have not increased).

In keeping with natural evolution, once the basic needs of a society are satisfied, cultural, social and environmental needs then emer-ge - and the Emirate of Kuwait is currently at this stage.

The remediation project ten-der is part of the Kuwait Oil Company’s strategic plan (KOC). What environmental aims do they have?

At the current time Kuwait, along with Saudi Arabia, has the world’s biggest investment plan for infras-tructure and environmental projects in the world, which means a host of business opportunities at present.

As regards the contaminated soil market, KOC’s strategic environ-mental development plan aims for the remediation of all contaminated land and the recovery of desert ecosystems on those sites.

Briefly, what are the phases of the project?

GENERAL WORK BEFOREHAND:Perimeter fences •(14,000 metres).Roads and access points •(18,000 metres).Installation of offices and site •containers: 2 main offices and 8 satellite offices.Environmental Impact Study. •Hazard Identification Study, •and Hazard and Operability Study.

SPECIFIC TASKS:Detection survey and manage- •ment of unexploded ordnance.X-ray survey. •Detailed investigation of each •existing stratum (sludge and soil).Water removal and manage- •ment.Removal and treatment of oily •sludge.Excavation and treatment of •affected land.Separation and management •of waste including manufac-turing lines and discarded fencing.Landfill and compacting of all •areas using treated soil.Recovery of native ecosystems •in remediated areas.

What technology will you use in each phase?

We will apply the following soil remediation technologies:

Soil scrubbing: this technique uses water to decontaminate the soil. The process removes the contaminants by dissolving or suspending them in the aqueous solution and then concentrating

KOC Project. Key figures Budget: €45 million

Completion time: 36 months

Contaminated area: 703,000 m2

Replanted area: 447,000 m2

Total oily sludge to be treated: 78,000 m3

Crude oil recovered: 2,000 m3

Soil remediation in Kuwait

15Highlights

the contaminants in a small volume by particle size separa-tion.

Thermal desorption: involves heating the soil to be treated to between 90 and 560 OC to volatize the contaminants which are then dealt with in the gas phase.

Biotreatments: these enable contaminants to be broken down by microorganisms. The medium is enhanced to enable the colo-nies of degrader microorganisms to perform well. It’s a very versa-tile technique suitable for water and soil. It can also be used in situ, ad situ and ex situ.

What difficulties did you come across?

The main difficulties were cultural differences, a lack of knowledge of the Kuwaiti labour market and the need to learn the regulations used by the Kuwaiti authorities and KOC itself.

When is work scheduled for completion?

The completion date is scheduled for March 25th 2015.

How many people are wor-king on the project? How many locals? How many women?

HERA AG Ambiental’s own staff consists of 80 people. Due to the characteristics of the Kuwaiti job market, the percentage of wo-men on the payroll is not signifi-cant. At the management level, most of whom are European, 40% are women.

What sort of waste does decontamination produce? How is this waste treated?

Virtually no waste is generated by our activities, just the waste produced during the maintenan-ce of our equipment.

What impact will the project have on the environment?

The environmental aim of the project is to restore the ecosys-tems affected by contamination. To be specific, the replanted areas will account for more than 60% of the entire decontamina-ted area. This project falls within the framework of the internatio-nal environmental agreements ratified by the Kuwaiti govern-ment.

Fernando Herreros

Chief Executive Officer HERA AG Ambiental S.L.

Report parameters16

This is the HERA Group’s fourth, bi-annual sustainability report and it features the figures for the years ending December 31st 2011 and 2012.

The sustainability report has been posted on the www.heraholding.com/memoria website for consul-tation by the general public. It includes a questionnaire to let readers voice their opinions.

As in previous editions, this report complies with GRI (Global Reporting Initiative or G3 as it is also known) guidelines for sustai-nability reports, edition G3.1. Unlike previous reports, in this edition the Group has climbed from GRI application level C to application level B (for more details of application levels, see following table). In order to achieve level B, the Group hired BSD Consulting (GRI’s data partner and training company in Spain) and incorporated their suggestions for improvement, whilst also drafting plans for further progress in future sustai-nability reports. In this respect, with a view to the next edition, the Group intends to work in conjunction with its stakeholders on reviewing and enhancing the main social, environmental and economic impacts generated by the Group and the respective indicators.

This year the Group decided to focus on improving the report’s contents by climbing from level C to level B. Therefore, in order to comply with the cost-cutting policies implemented by the Group’s management, it was

3.1Reportoutline

Report parameters

decided not to have the report verified since the data sources and methods are the same as in previous periods. Each year, and this year was no exception, the report coordination team reques-ted data from the departmental heads responsible for each of the Group’s activities, and this infor-mation was revised and checked internally together with the

3.2Reportscope

general management.

This report includes details of the Group’s performance in 2011-2012 in Spain, Latin America, Europe and the Middle East (since 2012) thanks to the companies listed below in which HERA has a stake of 50% or more. The information about subsidiaries is based mainly on majority percentages

Reportapplica-tionlevel

C C+ B B+ A A+

Report on:1.12.1-2.103.1-3.8,3.10-3.124.1-4.4,4.14-4.15

Report on all criteria listed for Level C plus:1.23.9,3.134.5-4.13,4.16-4.17

Same as requirement for Level B

Not Required Management Approach Dis-clousures for each Indicator Category

Management Approach Disclousures for each Indicator Category

Report on a minimum of 10 Performance Indicators, including at least one from each of: Economic, Social and Environmental

Report on a minimum of 20 Performan-ce Inicators, at least one from each of Economic, Envirnmental, Human rights, Labor, Society, Product Repon-sibility

Report on each core G3 and Sector Supple-ment* Indicator with due regard to the Materia-lity Principle by either:a) reporting on the indicatorb) explaining the reason for its omission

StandardDisclousures

Rep

ort

Exte

rnally

Ass

ure

d

Rep

ort

Exte

rnally

Ass

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d

Rep

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Exte

rnally

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d

G3ProfileDisclousures

OUTPUT

G3ManagementApproachDisclousures O

UTPUT

G3PerformanceIndicators&SectorSupplementPerformanceIndicators

OUTPUT

* Sector supplement in final version

17Report parameters

Parentcompany

HERA Holding Habitat, Ecología y Restauración Ambiental S.L.

Spanishcompanies

ALQUIMIA SELECTA S.L.ALANSU S.L. (sold on 20/12/12)ALANSU ASTURIAS MEDIOAM-BIENTE S.L. (sold on 19/12/12)ATRI S.L. CENTRAL DE RECOVERY DE CASTILLA LA MANCHA S.L. CETARE TRATAMIENTOS S.L. COLL CARDÚS GAS S.L. ENERXIA DOS CASTROS S.L. HERA AMASA S.A. HERA GAS S.L. (name changed on 05/10/11. Formerly HERA Energ S.L., already 100% HERA)HERA GASIFICACIÓN S.L. (name changed on 01/03/12. Formerly HERA PLASCO. Al-ready 100% HERA)HERA IBEROAMERICANA S.A. HERA PLASMA S.L.HERA TRATESA S.A.U INDUGARBI ENERGIA S.L. INDUGARBI OTS S.L. INDUGARBI CDW’S S.A. INDUGARBI S.L. ÓXIDOS RECUMET® S.L. PLASMECO S.L U.

and effective control criteria.

The main changes in ownership in comparison with the previous edition of this report are summa-rised below. For further details, see the chapters about the respective activities.

The sale in late 2012 of the •companies responsible for the Group’s transfer business, i.e. Alansu S.L. and Alansu Astu-rias Medioambiente S.L., did not affect the business indica-tors in this edition.

The French company Albhyon •S.A.S. responsible for hydro-gen production was bought in June 2012, therefore its indi-cators are not covered by this report.

In November 2011, a controlled •landfill in Chile (HERA Ecobio S.A.) was sold. The indicators of this business were not avai-lable for this edition.

Internationalcompanies

ALBHYON S.A.S. (French company bought on 27/06/12)BIOGAS KLEIN EICHHOLZ GMBH CONPOREC S.A.S. HEGAR HABITAT, ECOLOGIA E GESTAO AMBIENTAL DE RE-CURSOS LDA HERA AILINCO S.A. HERA AG AMBIENTAL S.L. HERA AMBIENTAL LTDA HERA ARGENTINA S.A. HERA BIO BIO S.A. HERA BRAZIL INDUSTRIA E COMERCIO LTDA HERA CHILE S.A. HERA ECOBIO S.A. (sold on 14/11/11)HERA COLOMBIA S.A. HERA FRANCE S.A.S HERA SERVICIOS MEDIOAM-BIENTALES S.A. HERA SUL LTDA HERA UCRANIA S.L. HERA ZÁRATE CAMPANA S.A. IBEROAMERICANA DE MEDIO-AMBIENTE S.A. MÉXICO DE SERVICIOS MEDIO-AMBIENTALES S.A. NUEVO MONDOÑEDO S.A.- E.S.P.SCHWARTING BIOSYSTEM GMBH STL S.A.

TemporaryConsortia

UTE AMBIENTAL LIMITADA UTE BIOGAS LORCA UTE BIOVAL UTE CTR VALLÈS UTE FLOW HERA UTE VALLORO

HERA Group 18

HERAHOLDING,Hábitat,Ecolo-gíayRestauraciónAmbiental,S.L. is the head of a group of companies providing integrated environmental solutions for responsible waste management, and the operating and supply of facilities for the treatment and upgrading of waste, wastewater and contaminated soils.

The Group is now well experien-ced in waste management and water treatment, as demonstra-ted by its portfolio of more than 6,000 Spanish and international customers. This experience together with its great dedication to innovation and the develop-ment of in-house technologies, plus its commitment to managing each type of waste so as to ensure maximum recovery of materials, renewable energy, clean water and space, all enable the Group to continue developing its environmental expertise and provide solutions that cater for each customer’s specific needs.

To provide an overview of HERA’s activities, the table below sum-marises the turnover by country in which the group operates (for full details, see the following chapter):

Spain

In addition to traditional disposal activities (the Group has three plants at present) and waste transfer, the Group also builds and runs facilities to separate and then upgrade materials to the full. It is experienced in mechani-cal and biological treatment plants (one example being the Vallès Occidental WTP); has a paint and solvent recovery plant in Palencia; a precious metal recovery plant in Cantabria;

upgrades iron and steelworks dust in Biscay; and recycles construction and demolition waste (CDW) and old tyres in Navarre. In the 2010-12 period, the Group implemented an in-house waste management system that exploits the benefits of a conventional controlled landfill and a biomethane plant (BioDigester Integra®).

HERA Group

Turnoverbyregions(‘000 €)

2010 2011 2012

Spain 75,314 68,604 59,496

Europe 3,194 5,210 2,823

Latin America 17,820 16,940 8,972

Middle East NAP NAP 3,516

NAP: Not applicable

InSpain 2010 2011 2012

Waste treated (mt): 710,006 767,352 645,356

Materials recovered (mt):

10,133 53,237 50,527

19HERA Group

InSpain 2010 2011 2012

Volume of leachates treated (m3)

119,192 358,100 156,918

Volume of water treated for third

parties (m3)

1,166,671 366,593 301,586

Volume of soil de-contaminated (m3)

715,000 686,400 710,600

Renewable electricity sold

(kWh/yr)

39,757,126 30,905,525 36,560,025

As for wastewater, the Group builds and runs industrial and urban wastewaste treatment plants, and also treats leachates using the customer’s or the Group’s own landfills. The Group’s desire to provide integrated waste management led it to develop a sludge recovery technology.

HERA’s cutting-edge proprietary technology also enables it to provide soil decontamination and remediation services.

The Group has experience in recovering energy from non-recy-clable waste and from biomass by gasification and has several customer for whom it captures the biogas generated by their controlled landfills and converts it into renewable electricity by cogenerators. The Group also uses its proprietary technology to convert it into Biogás Natural® (biomethane) which can be used in realms where natural gas is an option, for example, as biofuel for vehicles, or injected into the natural gas network or, from 2012 onwards, even converted into hydrogen.

Conporec technology (Tournan-en-Brie, France) Solid municipal waste treatment plant

HERA Group20

InLatinAmerica 2010 2011 2012

Waste handed (mt): 746,960 805,554 762,930

HERA’s internal structure is organised according to Financial and Corporate Resources, Strate-gic Resources, and finally Busi-ness Development and Manage-ment resources. The third area is then subdivided into three sec-tors according to the type of business or service provided: Operations, Engineering and Business Development.

In Latin America

HERA owns several controlled landfills for hazardous and non-hazardous waste in Brazil, Colom-bia, Chile and Argentina.

Within the framework of the Kyoto Protocol, the Group has a clean development mechanism in Chile that is currently being certified.

In Europe, Asia and Middle East

In Germany, HERA has several years’ experience building and running anaerobic digestion organic waste treatment plants in Germany and has a heavy-duty proprietary technology specially designed to digest the sludge produced by urban wastewater treatment plants. During the period covered by this report, HERA’s proprietary technology left its stamp on the international scene when a plant was built in Korea.

In France, in the city of Tournan-en-Brie, the Group is building a mechanical and biological treatment plant for solid urban waste using aerobic digestion: a patented technology that produ-ces top-quality compost.

In 2012 the Group began work on the restoration of an oil field in the Middle East (Kuwait) with a view to recovering 447,000 m2 of desert areas. In this period, HERA also carried out two soil remedia-tion projects in Portugal and another in Glasgow (United Kingdom).

InEurope,AsiaandMiddleEast

2010 2011 2012

Renewable electrici-ty sold (kWh/yr)

7,488,000 9,671,500 9,672,000

21HERA Group

InternalorganisationoftheHERAGroup:

Corporatestructure

BusinessDevelopmentandManagement

EmergingmarketsMaturemarketsNewVentures

OPERATIONSOperating and construction of facilitiesLow-cost waste treatment systemsEnvironmental services for industry

ENGINEERINGIntegration of bids and scheme designsConstruction of plants

BUSINESSDEVELOPMENTSProject management and business modelsProject finance managementNew business

StrategicresourcesHERAInstitute

FinancialresourcesCorporateresources

HERA Group22

However, for the purposes of this report it is more appropriate and useful to organise the information by giving priority to environmen-tal considerations. This is why the activities covered in the four editions of this report have been organised according to the type of management provided for each sort of waste:

Since this is the first time that the Group is obliged to specify the social, economic and environ-mental improvements required by the management approach, it was decided to include them alongside the respective indica-tor to enable the context in which each activity takes place to be understood better. In future editions, this will be summarised in a chart to make it easy to see which aims have been met.

The following section explains in depth the activities carried out by HERA in this period. Each section is followed by a list and explanation of the environmental pressures considered, in con-junction with the general mana-gement, to be the most impor-tant for each type of activity, and also the methods used to measu-re the data or, in those cases where GRI protocols were not applied, the calculation methods used.

RECOVERY ACTIVITIES

LOGISTICS ACTIVITIES

DISPOSAL/ ELIMINATION

ACTIVITIES

RECOVERY ACTIVITIESFrom waste to materials/re- •newable energyFrom wastewater to clean •waterFrom emissions to renewable •energyFrom contaminated land to •usable space

DISPOSAL/ELIMINATION ACTIVITIES

LOGISTICS ACTIVITIES

23Recovery activities I From waste to materials / renewable energy

Recovery activities

4.1.1Fromwastetomaterials/renewableenergy

This activity consists of leaving books in public places where they can be picked up by other readers who will then do likewise. The idea is to leave books out to be found by other people.

Keyfigures: 2010 2011 2012 *

WTP:VallèsOccidentalwastetreatmentplant(1)

mt of SMW handled NAP 167,573 146,482 M

Output of materials (mt):

Recovered aluminium NAP 266 349 M

Recovered brick NAP 672 668 M

Recovered plastic film NAP 393 315 M

Recovered HDPE plastic bottles NAP 694 754 M

Recovered HDPE plastic crates NAP 85 62 M

Recovered PET plastic NAP 1,237 1,357 M

Recovered mix of plastics NAP 1,866 2,235 M

Recovered paper/cardboard NAP 864 994 M

Recovered steel (cans) NAP 2,394 2,355 M

Recovered voluminous scrap metal NAP 58 34 M

Upgraded bio-stabilised material NAP 15,931 20,454 M * Estimated (E), Measured (M), Calculated (C)

Comments » - (1 )Vallès Occidental WTP opened in 2011.

Recovery activities I From waste to materials / renewable energy24

Keyfigures: 2010 2011 2012 *

Upgradingofsteelworkpowder(ÓxidosRecumetsystem®)(1)

mt of steelwork powder treated NAP 10,863 8,535 C


Material recycled as raw material for steelworks NAP 2,549 2,672 M

Material upgraded by Óxidos Recumet system for use in zinc industry

NAP 8,690 6,828 M

Steel recovered using Óxidos Recumet system NAP 306 321 E

Biogasgeneratedbyanaerobicdigestionoforganicmaterial

mt of incoming organic waste 24,000 30,859 31,000 M

Output:

kWh of renewable electricity produced and sold 7,488,000 9,671,500 9,672,000 E

kWh of heat produced 7,862,400 10,154,800 10,155,600 E

Digestate generated for agriculture (mt/yr) 19,200 24,550 24,800 E

Recoveryofpaintsandsolvents

mt of waste treated 5,279 4,970 4,741 C


Recycled paints and solvents 599 828 830 C

Paints and solvents upgraded for use in generating energy

1,100 876 680 C

* Estimated (E), Measured (M), Calculated (C)

Comm » ents - (1 ) Steelwork powder upgrading (Óxidos Recumet system®) started in 2011.


Keyfigures: 2010 2011 2012 *

Recoveryofpreciousmetals

mt of incoming waste 245 207 165 M


Recovered silver 0.88 0.89 0.46 M

Recovered PET 21 19 7 M

CDWrecovery

mt of incoming CDW 7,176 15,932 1,151 M


Recovered aggregates 6,354 9,070 2,641 M

Recovered iron 22 13 2 M

Recovered cardboard 23 67 1 M

Recovered plastic 32 36 2 M

Recovered wood 196 200 21 M

Oldtyrerecycling

mt of incoming old tyres 3,424 4,053 7,697 M


Inner tubes 25 11 0 M

Tracks 12 0 0 M

Shells 81 76 326 M

Powder 147 245 82 M

Aggregate 794 3,893 3,884 M

Ferrous 378 1,250 1,247 M

Textile 349 646 1,406 M * Estimated (E), Measured (M), Calculated (C)


OTHER WASTE INTAKE

MECHANICAL SEPARATION

Biological treatment

Waste sent to landfill

Recovery Materials

cardboard · iron

bricks · plastic

aluminium · paper...

Organic matter biostabilised

Mechanical and biological treatment (MBT)

The Group has ten years’ expe-rience in building mechanical and biological treatment plants that enable optimum fractioning, material recovery and bioenergy upgrading. Here a few examples of these facilities:

In 2006, the temporary consor-tium UTE Valloro, in which HERA has a 50% stake, won the tender for the “enlargement of the anaerobic digestion process and the capacity of the composting plant at the Vallès Oriental regio-nal waste treatment plant in Granollers”. The contract entailed the construction of a mechanical and biological treatment plant able to process 45,000 mt/yr of the organic fraction of municipal waste (OFMW) using a low-solid (wet), anaerobic digestion sys-tem that produces biogas for use as a renewable energy. The

construction and commissioning of these facilities ended in 2011 and the final budget was €29 million.

In February 2007, the WTP Vallès Occidental consortium led by HERA with a 60% stake, was awarded the tender held by the Consorci de Residus del Vallès Occidental for building and operating the Vallès Occidental Waste Treatment Plant in Coll Cardús (Barcelona), expected to have a total turnover during the 15-year concession of more than €400 million and investment of some €90 million. This plant started operating in 2011 and during the period covered by the 2011-12 report, handled an average of 150,000 mt/yr of the non-organic fraction of municipal waste, although the plant is design ed to handle 245,000 mt/yr.

This plan has three processing phases:

Pre-treatment of the non-1. organic fraction of municipal waste in order to recover the upgradable materials from the waste and separate the orga-nic fraction (recovered organic fraction, ROF).

Stabilisation of the recovered 2. organic matter by means of a controlled aerobic process lasting at least 6 weeks.

Treatment of the stabilised 3. ROF to obtain a clean, biosta-bilised end product intended to cover and restore the Coll Cardús controlled landfill in the future.

“This water treatment plant is self sufficient as regards water and electricity”

Treatment process of solid municipal waste (SMW):


Organic matter biostabilised

During the construction phase of this water treatment plant and also the current operating phase, priority was given to people from Vacarisses (the town where the plant is located) when recruiting staff: 60% of employees are from this town.

“Some 30% of the water treatment plant workforce are women”

In order to globalise its activities and provide solutions able to cater for different types of custo-mers and countries, in 2010 the Group bought the Conporec technology patent, a form of mechanical and biological pro-cessing for solid municipal waste (SMW) using aerobic digestion developed in Canada. The resul-ting high-quality compost (com-pliant with the French standard Certifie NFU 44051) is suitable for agricultural use. Three plants currently operate with this tech-nology in the world: in Canada (35,000 mt/yr capacity), USA (41,000 mt/yr capacity), and Australia (100,000 mt/yr capaci-ty), and HERA is currently build-ing another in Tournan-en-Brie, France able to handle 65,000 mt/yr of SMW. This plant required investment of €20 million and

completion is scheduled for 2013.

“Conporec technology makes it possible to recover 60% of the organic matter found in solid municipal waste”

Generating biogas by anaero-bic digestion of organic mat-ter: bio-methane

Schwarting Biosystem GmbH (SBS) is the Group’s company in Flensburg, Germany responsible for designing and building plants generating biomethane from the sludge produced by municipal water treatment plants, foodpro-cessing waste and other types of organic waste suitable for diges-tion.

Its twenty-one plants include the Klein Eichholz GmbH biogas plant in Berlin, built in 2006, which handles 31,000 mt/yr of foodprocessing waste and is a good example of the HERA Group’s experience in the integral treatment of this type of waste, pursuant to the provisions of Regulations 1069/2009. In addi-tion to its provisions concerning class 1 animal by-products and NER waste that must be incinera-ted, these regulations also con-template the use of composting

and/or bio-methanisation to upgrade category class 2 and class 3 waste. In addition, the digestate this plant produces is used as an agricultural bio-fertili-ser, pursuant to Appendix II of the German Act BioAbfV dated September 21 1998. This all-in plant also makes use of the surplus heat generated by its electricity generators fuelled by the biogas captured from diges-tion. This residual heat is used in the compulsory neutralisation process of class 2 and 3 waste.

As regards the Group’s technolo-gical capabilities, HERA has a proprietary high-performance, anaerobic digestion technology specifically designed to process the sludge generated by munici-pal wastewater treatment plants, or any type of extremely liquid mixtures, with a faster turnaround time than conventional technolo-gy. This enables a larger volume of waste to be processed in a very small space and, therefore, more renewable electricity – approximately 15% more – to be produced from each metric tonne of incoming waste.

One example of the on-going international expansion of the Group and its technologies is the

WTP Vallès Occidental (Vacarisses, Spain)


construction and commissioning of a high-performance digester completed in 2012 Ulsan, a town in south-east Korea, with a processing capacity of 30,000 mt/yr of the liquid fraction of kitchen waste and sewage. Because the waste is very liquid, with a dry content of just 5%, i.e. very similar to wastewater treatment plant sludge, the best technology for this type of waste was a high-performance digester.

Recovery of paints and sol-vents

HERA has a process for the recovery of car industry paint and solvents (both hazardous waste) which is unique in Europe: once recycled, the materials are retur-ned to the customer to be re-used or sold on the market as a new product.

For six years now, non-recyclable solvents and paints have been used in the manufacture of fuel for cement works.

Recovery of precious metals

One of the main activities of this plant in Cantabria is the recovery of silver from analogical photo-graphic plates and liquids (hazar-dous waste). It can also recover PET from x-rays which is then sold as a by-product.

This plant can process 1 metric tonne of x-rays per day. The reduction in the number of x-rays processed and the shift towards materials with lower silver and PET contents are the reasons for the drop in the quantities recove-red.

Upgrading of steelworks dust (Óxidos Recumet® system)

The Óxidos Recumet® system increases the zinc content of the exhaust fumes from the smelting gas scrubbing systems in electric arc steelworks (steelworks dust) and transforms it into material suitable for use in the zinc manu-facturing industry.

HERA currently has a plant installed in the Nervacero steel-works (Celsa Group) which handles all the dust generated at this steelworks. Each metric tonne of treated dust yields 0.8 mt of Óxidos Recumet®. In addition the steelworks recovers 0.12 mt of iron to be processed which used to be carried away with the smelting gas due to the inherent inefficiency of steel production. As a result the Óxi-dos Recumet® system offers greater efficiency in several respects: less material needs to be transported, a high percenta-ge of the dust’s iron content is reclaimed as steel, and CO

2

emissions are reduced.

Paint and solvent recovery plant (Palencia, Spain)


In early 2011, the European Che-micals Agency rated the Óxidos Recumet® system as an “emer-ging technology” in the upgra-ding of steelworks dust.

“The Óxidos Recumet® system has avoided an avera-ge of 8,000 km per year(1)”

Recovery of construction and demolition waste (CDW)

The construction industry consu-mes large amounts of raw mate-rials and generates a great deal of demolition rubble and rejects. According to the 2007-15 PNIR (Spanish Integrated Waste Sche-me), Navarre (where the plant is located) produced 459,685mt of CDW in 2008.

The Government of Navarre passed Decree 23/2011, which admended Royal Decree 105/2008 dd February 1st gover-ning the production and manage-ment of construction and demoli-tion waste (CDW).

The Navarre decree enlarges upon certain aspects (it defines the deposits required as guaran-tees, defines when CDW is class-ed as municipal waste, states the technical specifications of treatment plants, gives recovery priority over disposal, etc) inten-ded to foster and develop CDW management.

CDW is a type of waste that fluctuates in line with the cons-truction industry, making it

difficult to know how this sector will evolve in the near future or forecast the amount of waste that will be produced. Therefore, the best way to absorb all treatment capacity and exploit the existing facilities to the full, is to give recovery priority over disposal.

This situation has deteriorated in recent years because the crisis in the construction industry has caused the amount of waste entering treatment plants to plummet, and also a drastic decline in market prices. Because this type of waste is not controll-ed by the authorities, the easy way out for many is illegal dump-ing. The companies treating such waste cannot compete and are doing their utmost to avoid having to close their facilities down.

Integrated management of old tyres (OTs)

In 2011-12, HERA consolidated its old tyre activities (collection, shipment and recovery). Against a backdrop of shrinking markets aggravated by the fact that the recovered materials are used mainly in the public sector (children’s playgrounds, powder for asphalt, etc), HERA nonethe-less managed to quadruple the amount of materials recovered and was able to double the metric tonnes of old tyres treated. Process engineering managed to cut operating costs, increase productivity and improve the yield

of the resulting by-products (metals, re-cycled tyres and textiles).

In keeping with the Group’s commitment to be involved with the entire life cycle of its products and its desire to deal successfully with future challenges, HERA has signed an agreement with the US company Lehigh Technologies for the development and sale in Europe of latest-generation micronized rubber powder (MRP) which can be reused in the manu-facture of new tyres and other rubber products, and also in plastics and primers. This agree-ment entails the construction of a new MRP production line and the recruitment of staff in the area.

As a result, HERA will be the only European company to provide this service and aims to be the first European manufacturer of this material with a solid customer portfolio.

(1)In comparison with the distances that would have been travelled if the steelwork dust had been treated in the nearest plant using alternative technology.

Integral old tyre treatment plant (Navarre, Spain)


Technologies developed by the Group:

BioDigester Integra®

In the period covered by this report, the HERA Group has studied and designed solutions for the current economic crisis that not only reduce waste management investment and operating costs, but also maximi-se their upgrading to materials and energy resources. The BioDi-gester Integra® (BD-i) technolo-gy is the result of the Group’s efforts in this field.

BD-i is designed to be part of a mechanical and biological treatment centre handing solid municipal waste. This low-cost anaerobic digestion technology is incorporated into the original land using civil engineering designed and operated cell by cell (on a rotating basis to make the very most of the available space) that reaps the benefits of a conventional controlled landfill and a biomethane plant.

Generating syngas by gasifi-cation of non-recyclable waste and biomass

HERA Group is well versed in using different gasification techniques to capture energy from waste, which are more energy efficient and environmen-tally cleaner than conventional processes.

As regards the management of solid municipal waste (SMW), HERA’s experience includes the

development, construction and commissioning of the world’s very first direct SMW gasification plant using plasma torches. Built in 2007 in Canada in conjunction with Plasco Energy Group, this plant can handle 30,000 mt/yr of SMW.

This innovative technology featuring both gasification and vitrification is an alternative solution for the treatment of non-recyclable urban and indus-trial waste which could otherwise only be incinerated or sent to a landfill. This is the most efficient, clean and scalable technology for processing waste that could otherwise not be upgraded

In addition, because of the current economic climate, the Group not only worked on scaling these gasification technologies up to commercial scale but also on ensuring they are economica-lly feasible. This approach means that simple solutions can be provided after pre-treatment, such as integrated gasification by means of fluidised bed reactors, a system enabling suitable gasifica-tion with a minimum amount of air thanks to a large capacity heat exchanger.

This solution, in conjunction with standard dry channel emission control systems, enables a highly competitive overall gasification process in the 20MWt to 60MWt range.

In addition, HERA has started applying gasification to the

following materials:Dry sludge from wastewater •treatment plants.Dry sludge with high calcium •carbonate content from paper mills.Fluff from plastic and foam •parts of crushed cars.Aqueous solutions of glycerine •(by-product of the bio-diesel manufacturing process). Biomass. Splinters of wood •species very likely to produce extremely high levels of tar. Materials with a carbon con- •tent of more than 50% of their dry weight. The results ob-tained show that gasification with oxygen or enriched air can produce extremely high quality syngas, with an LCV of more than 10Mj/Nm3.

In the 2011 – 2012 period, the Group’s Industrial Gasification Pilot Plant in Castellgalí was used to optimise the amount of energy recovered from biomass: a key factor in dealing with the challen-ge of replacing imported fossil fuels by renewable, local fuels.

Efforts focused on producing syngas by different gasification technologies:


Down-draft, vertical bed »Horizontal, moving bed »reactor Fluidised bed reactor »

Progress has also been made in fine-tuning the scrubbing sys-tems used for the syngas produ-ced by gasification and particu-larly in optimising the use of this gas in internal combustion engi-nes. On-going research has focussed on spark ignition engi-nes with dual operating diesel cycle, resulting in a considerable percentage of diesel being replaced by syngas.

R&D+i

In the framework of the project for enhancing and optimising biomass gasification with cogeneration, carried out between April 2009 and September 2012 with the help of a CDTI grant, HERA has conti-nued to conduct tests to study energy efficiency with a view to maximising the net power output of processes designed to cover combined heat and electricity requirements.

The Group has also acquired valua-ble experience in oxy-steam-gasifi-cation processes and gasification featuring steam recycling, thereby enabling optimum gas scrubbing resulting in extremely pure syngas suitable for the chemical synthesis of biofuels or the production of hydrogen.

Recovery of WWTP sludge leachate concentrate

From concentrated WWTP sludge to materials (Alximix® system).

For ten years, the Group has been carrying out specific indus-trial-scale tests at the Vacarisses pilot plant, adapted to treat WWTP sludge and concentrates. This plant can handle 30,000 mt/yr of WWTP sludge and concen-trate generated by the treatment of wastewater. The concentrate treated is the liquid effluent generated by reverse osmosis or the pressmoulded concentrate.

This plant can also, however, treat concentrate generate by other physical, chemical and biological processes.

The Alximix® system also combi-nes thermopress heating with physical/chemical neutralisation to convert the concentrate into dry powder (called neutral) without producing any type of waste or effluent and with emis-sions compliant with the strictest standards.

This neutral material can be used as rawmix to manufacture ce-ment with fewer CaCO

3, energy

and CO2 emissions. It can also be

used in road foundations, as a filler for asphalt, in tile manufac-turing, etc. Industrial-scale tests to manufacture calcium oxide from neutral have already been successfully carried out.

WWTP sludge and leachate concentrate upgrading plant (Vacarisses, Spain)


To confirm its utility as rawmix in the manufacture of Portland cement, an industrial test and production scheme was carried out in cement works as part of the CENIT (Spanish Consortia for Strategic Technical Research) Sostagua project. The aim of this scheme is to acquire new knowledge that can be helpful when creating new products, pro-cesses or services, thereby helping to improve the technolo-gical standing of Spanish manu-facturing.

“The CENIT Scheme confirmed the technological validity of this neutral material as a component of Portland cement rawmix without affecting the process, regardless of the rawmix pro-portion and stream”

From WWTP sludge to renewable energy.

This activity using the Group’s own high-performance, biome-thanisation technology to treat sludge from municipal water treatment plants and generate biogas, was explained in the previous section ‘Generation of biogas by anaerobic digestion of organic matter’.

Services provided

Mechanical and biological treatment:

Mechanical treatment for the •separation, sorting and reco-very of the non-organic frac-tion of solid municipal waste Biological treatment for the •recovery of materials and/or energy from the organic frac-tion of solid municipal waste.

Generation of biogas by anaero-bic digestion of organic matter (biomethanisation):

Engineering, construction and •maintenance of biometha-ne plants to process sludge from municipal wastewater treatment plants and foodpro-cessing waste to generate re-newable energy and compost.

Recovery of paint and solvents:Re-use of solvents. •Recycling and manufacture •of paints and coatings from waste paints. Manufacture of fuel for cement •works.

Recovery of precious metals: Recovery of silver from pho- •tography fluids and analogical X-rays.Recovery of PET from analogi- •cal and digital X-rays.

Recovery of steelworks dust by means of the Óxidos Recumet® System.

Recovery of construction and demolition waste (CDW):

CDW sorting, processing and •treatment.

Recycling of old tyres:Collection, recycling and new •use of old tyres: closed-cycle system.

Biomethane treatment using Biodigester Integra® technology:

Design engineering, cons- •truction and management of plants.

Generating syngas by gasification of non-recyclable waste and biomass:

Design engineering, cons- •truction and management of gasification plants.

Recovery of WWTP sludge and concentrate – Alximix® system:

Engineering of processes for •transforming WWTP sludge and leaching concentrate into new, recycled raw materials for use in cement plants or in the process itself.


Mainenvironmentalpressures:Fromwastetomaterials/renewableenergy

2010 2011 2012 Units *

Rawmaterialsconsumed:

- Phosphoric acid, additives, filler pigments, resins

6.88 7.00 4.88 mt C

- Calcium chloride 3.4 8.4 3.1 mt E

- Borax 0.04 0.11 0.04 mt M

- Sodium carbonate 0.08 0.05 0.05 mt M

- Sodium nitrate 0.08 0 0 mt M

- Sodium sulphide 0.18 18.42 16.80 mt M

- Fixative reagent 1,440 648 340 l M

- Iron chloride 40% 7,700 250 130 Kg M

- Soda flakes 0.43 0.25 0.13 mt M

- Lime 173 209 299 mt C

Emissions:

- Particles 0.01 0.01 0.02 mt M

- CO2

INS INS INS mt M

- CO 0.037 0.006 0.017 mt M

- SO2

0.029 0.013 0.026 mt M

- NOX 0.048 0.016 0.031 mt M

Amount of mains electricity bought 165,104 520,541 395,559 kWh M

Waterconsumption:

- Mains water 1,309 2,153 973 m3 C

- Rain water NAP 15,768 10,461 m3 E

- Recycled water (permeate) NAP 23,195 15,160 m3 C

Diesel oil consumption 23,421 29,807 28,309 l C

Propane consumption 1.19 1.05 0.63 mt M

Totalamountofwastegenerated:

- Water and solvent sent for upgrading 368 463 426 mt E

- Stabilised waste 2,879 2,844 3,059 mt C

- CDW residue 551 701 108 mt M

- WTP residue NAP 88,840 77,735 mt M

Useofin-housesubproducts: C

- Sludge from dewatering 53 35 63 mt C

SPAIN

* Estimated (E), Measured (M), Calculated (C) NAP: Not applicable / INS: Insignificant


Comments about the main environmental pressures

Seventy percent of the paint and solvent distillation sludge is recovered by an external waste handler, 20% is used in paint recycling processes and the remaining 10% is reused in the same solvent distillation process.

In addition to managing waste itself, the Vallès Occidental WTP also subjects all the air inside its facilities to acid chemical treatment and biological treatment before releasing it into the atmosphere. As mentioned earlier, the stabilised organic fraction is to be used to cover and restore the Coll Cardús controlled landfill in the future, where the waste generated will be deposited.

The impact of emissions and water consumption at this plant have been minimised too. The plant is powered by electricity obtained from biogas captured at the Coll Cardús controlled landfill whilst the water used in the plant’s processes is harvested from the roofs and the leachate generated by the WWTP at the Coll Cardús controlled landfill.

High-performance digestion plant (Ulsan, South Korea)

35Recovery activities I From wastewater to clean water

Recovery activities

Thanks to advances in telecommu-nications in recent years, internet networks can connect thousands of people with creators around the globe and generate funding for independent, alternative pro-jects.

4.1.2Fromwastewatertocleanwater:

Keyfigures: 2010 2011 2012 *

Treatmentofleachates

Spain

Volume of leachate treated (m3) 119,192 358,100 156,918 M

Volume of permeate generated and re-used (m3) 192,381 139,481 111,432 M

LatinAmerica

Volume of leachate treated using biological, physical and chemical means (m3)

407,840 153,315 207,231 M

Treatmentofmunicipalandindustrialwastewater

Spain

Volume of water treated for third parties (m3) 1,166,671 366,593 301,586 M


Recovery activities I From wastewater to clean water36

Leachate treatment(2)

It is already 15 years since the Group built its first reverse osmosis plant at the Coll Cardús controlled landfill. These facilities – pioneers at that time – enabled processing of this type of waste to meet even more exacting requirements by transforming leachate with high levels of non-biodegradable organic elements, salinity, nitrogen, AOX and other inhibiting materials into clean water suitable for being re-used.

This experience has enabled the Group to offer its customers the most suitable membrane techno-logy depending on the origin of the wastewater (CL, ecoparks, composting plants, etc) and also to develop integrated technolo-gies to make such treatments more efficient in the design, implementation, operating and management phases. In this respect the Group has two plants that are global benchmarks: one in Catalonia able to handle 200m3/day and one in Galicia with a capacity of 180m3/day.

In Latin America, the Group has pioneered the adoption and implementation of wastewater treatment technologies in waste management. For 14 years HERA has been using a physical, chemi-cal and biological treatment to process the leachate generated at the Doña Juana Bogotá (Co-lombia) landfill with a capacity of 700 m3/day. This treatment capacity was doubled in 2008

following an enlargement to include a biological pre-treatment.

The first two plants in Colombia using membranes to process leachates were built at HERA’s landfill in Colombia: one with a capacity of 170 m3/day and the other, 300 m3/day.

The Group’s strategy in Brazil has been to provide each customer with the most flexible and adap-table solution. In 2012 HERA installed the first water treatment plant using reverse osmosis, under a lease agreement, able to

handle 100 m3/day of leachate. This plant currently works for two landfills in the state of Rio Grande do Sul and the aim is to imple-ment this venture throughout Latin America.

Industrial and municipal wastewater treatment

Re-use, in the sense of the stage after treatment, is a cornerstone of HERA’s strategy. Mention must be made of the growing number of membrane bioreactor module (MRB) applications being imple-mented – HERA has more than 40 operative in different types of

(2) Leachate features on the EU List of Waste but is handled by means of processes similar to those used for wastewater treatment which is why they are both mentioned here in the same section.

Industrial wastewater treatment plant (Tarragona, Spain)


facilities (municipal wastewater, chemical and cosmetic industries, vineyards, etc). Two examples where MRB technology was implemented in 2011-2012 are (1) the enlargement of the WWTP at the Goma Camps S.A.U. paper mill in Tarragona which increased the daily volume of wastewater treated from 30 to 40 m3; and (2) the construction of an industrial wastewater treatment plant in Vacarisses (Barcelona) with an average treatment capacity of 300 m3/day handing the was-tewater generated by an indus-trial estate.

In addition to the MRB technolo-gy providing treated water of excellent quality suitable for re-use in compliance with Royal Decree 1620/2007 dd December 7, HERA also has other technolo-gies spanning the widest possible spectrum of the environmental issues: IFAS, anaerobic digestion of highly contaminated water, ultrafiltering, etc.

The final step towards maximum resource recovery was the incor-poration of pressurised ultrafilte-ring technology for tertiary treatment, re-use and potabilisa-tion that eliminate a high percen-tage of microorganisms with low maintenance costs.

“The Group has built a pilot tertiary treatment plant able to produce 100 m3/day of re-used water which is cu-rrently conducting final tests to check the feasibility of this type of treatment in a chemi-cal industry”

The second cornerstone of the HERA Group strategy is their specialisation in water treatment for small towns of 30 to 1000 inhabitants. More than one hundred of these compact water treatment plants with the brand names of Bioclere® and Aqua-Paq® are already operative on campsites, rural hotels, ski re-sorts, etc.

And finally, the Group’s third key activity is the treatment of sludge generated by wastewater treatment by either dewatering during the treatment process or

employing in-house sludge recovery technologies:

Production of biogas and •biofertilisers by means of high-performance anaerobic diges-tion (for more information, see section 4.1.1 From waste to ma-terials / renewable energy).

Production of neutral material •by means of the sludge reco-very technology developed by HERA (for more information, see section 4.1.1 From waste to materials / renewable energy).

Mobile sludge dewatering •plant for occasional needs.

After accumulating technologies and expertise at more than 40 water treatment plants in Spain, the Group is now starting to make inroads into other markets with great potential. In Argelia, for example, as a result of the waste treatment scheme desig-ned to encourage the renovation and enlargement of the country’s water treatment network, HERA plans to take part in tenders related to this scheme in con-junction with Algerian companies and entities.


In-house environmental labo-ratory

HERA has a laboratory to analyse the physical and chemical parame-ters of industrial and municipal wastewater, potable water, under-ground water, leachates, waste and contaminated soil pursuant to standardised test methods using duly calibrated equipment and highly qualified staff.

The laboratory is ISO 9001 certi-fied to assure its quality, and its technical reliability is ensured by an in-house system based on ISO 17025. To check the accuracy of analyses we periodically take part in ENAC-certified comparative calibrations organised by CALI-TAX-LABAQUA.

R&D+i

Between 2008 and the first quarter of 2012, HERA took part in a consortium consisting of companies, universities and research centres to carry out a project entitled Cenit Demeter designed to diagnose the impact of climate change on grapevines and find solutions to remedy it. Because climate change is asso-ciated with a lack of water re-sources and because HERA has a great deal of experience in

recycling and re-using water in the wine industry, HERA has contributed by building two pilot plants featuring membrane technologies to recycle water in this industry. The Group has invested a total of €750,000 in this project, half of which has been funded by the CDTI (industrial technology development centre).

“The findings of the experien-ce in these two pilot plants gave rise to several studies published in Desalination, the scientific wastewater journal”

Services provided

Leachate treatmentConstruction and operation of •treatment plants employing membrane separation tech-nology (reverse osmosis and multi-membrane systems) tai-lored to suit each CL, ecopark, composting plant, etc.Rental of mobile reverse os- •mosis units.

Industrial and municipal wastewater treatment

Construction and operating of •wastewater treatment plants (full-scale and mobile versions).Construction and operating of •sludge recovery plants.On-site dewatering of waste • -water treatment sludge by means of mobile, containeri-sed centrifuge units shipped to site on a drivetrain. Integrated management of •wastewater treatment plants:

Engineering management. -

Day-to-day running of the -

treatment plant.

Preventive and remedial -

maintenance of equipment and facilities.Analytical control of the -

process and quality of intake waste and final effluent. Waste management: pre- -

treatment residue (oils and fats, grit, sieved residue, filtered residue, etc), biolo-gical, physical and chemi-cal sludge including ship-ment and treatment at the Group’s own or external treatment facilities depen-ding on the type of waste.Supply of reagents and -

spare parts for equipment

Dismantling of industrial activities:

Minimisation of environmental •liabilities on industrial siteAssurance of compliance with •in-house standards (due dili-gence) and applicable envi-ronmental legislation Underground interventions •(aquifers and soils), overhead and underground water tanks, waste, remains of raw mate-rials and finished products, laboratories (quality control, R&D, etc), destruction of confi-dential archives, restricted use products/materials, limited or prohibited products (asbes-tos/asbestos cement, dielec-trics with PBCs, radioactive items such as lightning con-ductors, smoke detectors, etc.


Environmental advisory service in Spain:

Environmental assessment •on activities pursuant to Act 20/2009 dd December 4th governing the control and remediation of environmental activities.Environmental sustainability •report for town planning sche-mes: Act 6/2009 dd April 28th governing the environmental assessment of plans and pro-grammes.Deforestation schemes: • De-cree 268/1996 governing the periodic and selective felling of trees in the zone of influen-ce of overhead electricity cables to protect such installa-tions and prevent forest fires. Inventories of effluents and •waste and minimisation stu-dies.Environmental Impact Studies, •etc.

The indicators listed below cover not only the wastewater treatment services provided for customers but also the manage-ment of leachates generated at the controlled landfills owned by the Group (see section 4.2 Dispo-sal activities).

Industrial wastewater treatment plant (Barcelona, Spain)


Mainenvironmentalpressures:Fromwastewatertocleanwater

Treatmentofleachates 2010 2011 2012 Units *

Raw materials consumed

Reagents 1,559 1,259 1,317 mt M

Quicklime 9,070 22,561 16,472 mt M

Volume of concentrate generated 101,707 63,353 54,287 m3 M

Amount of electricity generated on-site used for own consumption

7,429,819 12,086,970 9,617,799 kWh C

Treatmentofmunicipalandindustrialwastewater

Volume of treated water released into sewer network

0 758,808 916,974 m3 M

Raw materials consumed (chloride & ferric sulphate)

2,069 951 1,063 mt M

Sludge generated 6,306 3,278 3,455 mt M

Amount of electricity bought from the grid

INS INS INS kWh M


Comment: »This information is not available for Latin America. -


The Coll Cardús controlled landfill has been operating for many years now hence the gradual decline in the amount of leachate it generates. The permeate resulting from treating leachate with reverse osmosis is re-used to water roads to prevent dust being raised by lorries and to stabilise organic matter produced at the Vallés Occidental WTP.

In 2011, 3,278mt of sludge were generated by industrial and municipal wastewater treatment, of which 2,766mt were disposed of in the Group’s Class 2

controlled landfill at Coll Cardús and 512mt were divided amongst the recovery of cement works materials, composting and physi-cal-chemical treatment and disposal at other landfills.

In 2012, 3,455mt of sludge were generated by industrial and municipal wastewater treatment, of which 1,926mt were disposed of in the Group’s Class 2 contro-lled landfill at Coll Cardús and 1,529mt were divided amongst the recovery of cement works materials, composting and physi-cal-chemical treatment and

disposal at other landfills.

The sludge and concentrate generated by the Group’s contro-lled landfills in Latin America are dewatered and fed into one of their own hazardous waste cells.

INS: Insignificant

SPAIN

41Recovery activities I From emissions to renewable energy

Recovery activities

“Lend your garden” is a common practice in many French regions. The idea is for owners to share their gardens and let keen garde-ners grow things in them

4.1.3Fromemissionstorenewableenergy

Keyfigures: 2010 2011 2012 *

Total volume of biogas produced (m3) 29,311,658 28,865,497 31,366,371 C

Energy uses:

Total renewable electricity sold to the grid (kWh/yr)

46,634,696 40,577,025 46,232,025 C

Number of cars running on Biogás Natural®(1)

9 5 5 C


Comment: » (1) - There is a petrol station at the Group’s Coll Cardús CL to provide the biofuel Biogás Natural® for the Group’s fleet of

cars.

preterson jardin

^

Recovery activities I From emissions to renewable energy42

Biogas capture and recovery

Energy recovery

The anaerobic digestion of the organic matter deposited in controlled landfills generates a significant volume of leachates and biogas emissions (more than 50% of which is methane). Each tonne of methane released into the atmosphere contributes as much to global warming as 21mt of CO

2.

HERA’s main challenge was to mitigate greenhouse gases by capturing and treating these emissions. HERA subsequently acquired great expertise in transforming these emissions into renewable electricity at both their own facilities and those of their customers. Recently, howe-ver, HERA has also focussed on developing technology of their own for converting biogas into Biogás Natural® (bio-methane) and even hydrogen in order to cater more effectively for society’s needs by providing not only technology but also an ideal combination of expertise in order to make the very most of all types of synergy.

By capturing the biogas genera-ted at the controlled landfills and anaerobic digesters owned by HERA and using it to generate electricity, 280,000mt of direct emissions of CO

2 were avoided in

2012. This is not reflected in the respective EN16 environmental indicator because this edition of our report does not yet feature the calculation method needed

to integrate the direct and indi-rect greenhouse gases produced by the Group’s activities in Spain. One of the aims of the next editions will, therefore, be to include such emissions.

From 2012 onwards, this activity has been affected by the reforms to the energy industry being enacted by the Spanish govern-ment:

January 2012: • Royal Decree 1/2012 which suspended pre-assignment procedures and eliminated the economic in-centives related to the special regime governing renewable energy and cogeneration; March 2012: • Royal Decree 13/20122 which reduced the system’s regulated costs, mainly by adjusting transpor-tation and distribution rates; July 2012: • Royal Decree 20/2012 which enacted mea-sures concerning the remune-ration of systems on mainland and insular Spain, territorial supplements, adjustments in transportation rates and sli-ding increases to access tolls amongst others;Royal Decree of December •15/2012 enacting tax provi-sions for sustainable energy;And finally the publication •on February 2nd 2013 in the Spanish Official Gazette of Royal Decree 2/2013 intended to reduce the tariff deficit (the difference between regulated revenue and costs) and avoid further increases to final elec-tricity rates by immediate ad-justments to the remuneration

paid for the regulated activi-ties in this industry. This royal decree eliminates the bench-mark premium in force until now (and also the upper and lower thresholds of production prices) and establishes a regu-lated tariff for these facilities (renewable and cogeneration). In addition, this decree res- •tricts the right to choose to sell energy on the market by preventing facilities governed by the special regime which choose to sell on the open market then being allowed to sell at the regulated tariff.

Against this background of reduc-tions in the revenue obtained from selling renewable electricity, the Group has, therefore, decided to try and reduce costs and maximi-se electricity generation.


Flexible mechanisms contempla-ted in the Kyoto protocol: CDM and JI projects

The Group’s experience in energy from biogas capture and waste management, together with its desire to contribute proactively to reducing the gas emissions that cause climate change, drove HERA to undertake projects within the framework of the flexible mechanisms contempla-ted in the Kyoto protocol. In 2006, two clean development mechanisms (CDM) were under-taken in Latin America followed by other joint implementation (JI) projects: one in Ukraine in 2010 to capture the gas from four landfills, and another in 2011 in Bielorrusia to capture the gas from three landfills.

The CDM project at the Fundo las Cruces landfill in Chillán (Chile) is already being validated following its UN registration in February 2011.

The JI projects will enable a reduction of some 3.7 million tonnes of CO

2 equivalent in Ukrai-

ne and Belarus. Executive sum-maries of the different projects were drawn up in 2011 including particularly the construction of the infrastructures necessary for the extraction, capture, piping and use of the biogas energy found in landfills.

Conversion into Biogás Natural® (biomethane)

The Group always works hard to make progress and has proprie-tary technology to produce Biogás Natural® based on captu-ring the CO

2 found in biogas by

means of amine scrubbing, resulting in what is known as biomethane (99% pure methane obtained from renewable sour-ces). This Biogás Natural® is suitable for use where natural gas is usually employed, e.g. bio-fuel for vehicles, injection into the

natural gas grid and for manufac-turing hydrogen.

HERA has three facilities produ-cing Biogás Natural®, each using a different source of biogas: landfill, wastewater treatment and the anaerobic digestion of food processing waste:

In 2005 the plant alongside •the Vallès Occidental WTP (Vacarisses) was inaugurated with a capacity for handling 100 Nm3/hr of biogas from the Coll Cardús controlled landfill.

Recovery activities I From emissions to renewable energy44

In 2006 the plant located •at the Murcia wastewater treatment plant was inaugura-ted with a capacity for han-dling 15 Nm3/hr of the biogas generated by this wastewater treatment plant. In 2013 the plant for producing •biomethane from the biogas released by the anaerobic digestion of food processing waste, Agrobiomet project, will be inaugurated. This plant situated in Requena (Valencia) will have a flow of 100 Nm3/hr.

The Group’s aim is to have a gas-grid injection connection by 2014.

R&D+i

HERA participates in the Agro-biomet project (2010-2013) as a technological partner supplying the Biogás Natural® manufactu-ring plant. This project is part of the Spanish Ministry of Science and Innovation’s Impact Scheme which has a subsidy budget of €500,000.

“Since 2011 HERA has belon-ged to the group of experts actively contributing to the EU standardisation of Biogás Natural® being carried out by CEN PC 408”

Conversion of Biogás Natu-ral® into hydrogen

In June 2012, to ensure the most efficient use of Biogás Natural® (biomethane) production, the Group bought the French com-pany Albhyon which has years of experience in hydrogen produc-tion technology. Converting biogas into hydrogen enables it to be upgraded almost 100% with a fuel cell for use in vehicles or industry.

“Incorporating hydrogen fuel cells into electric engines not only trebles their autonomy but also extends the life of the vehicle’s battery”

R&D+i

In 2012, ADEME, the French government’s agency for the environment and energy, provi-ded funding of €150,000 for a project in which HERA trans-forms the biogas from a contro-lled landfill into hydrogen which is then fed into a fuel cell for electrical vehicles.

Services provided

Biogas capture and upgradingImplantation of biogas pro- •duction and gasification mo-del at controlled landfills.Design of biogas capture sys- •tem.Construction of turn-key •biogas-powered combined cycle gas turbine (CCGT) plant projects using combustion en-gines, turbines and generators.

Operating and maintenance of •these plants with own staff to optimise production.

Transformation into biomethane for injection into gas grid or for use as biofuel in vehicles

Design, construction and •operation of biogas upgrading plants.Biogas scrubbing and upgra- •ding for injection of biome-thane into natural gas grid or for use as biofuel in vehicles: Biogás Natural®.

Transformation of biogas into hydrogen

Production of hydrogen by •using steam to transform bio-gas.

The following information inclu-des both the upgrading of energy from biogas capture carried out at the Group’s own facilities (landfills and biomethane plants) and the biogas capture and upgrading services that the Group provides at its customers’ controlled landfills.


Mainenvironmentalpressures:Fromemissionstorenewableenergy

Fromemissionstorenewableenergy 2010 2011 2012 Units *

Total consumption of electricity generated by the plant

1,527,917 12,291,841 14,004,379 kWh C

Total mains water consumption INS INS INS C

Type and weight of emissions released into air (Coll Cardús CL):

CO 1,523 679 679 mg / Nm3 M

NOx 1,258 799 799 mg / Nm3 M

COVs 3,592 2,290 2,290 mg / Nm3 M

Total number and volume of most significant accidental spills

None None None C


All the electricity used at the Vallès Occidental WTP (some 8 million kWh/year) is generated by the Coll Cardús controlled landfill.

Pursuant to the environmental licence, levels of CO, NOx and COVs must be measured every six years. Subsequent readings will be taken by a company certified by Spanish authorities in 2014.

These pressures only refer to the upgrading of biogas energy carried out in Spain and Europe because no electricity is genera-ted from biogas in Latin America.

* Estimated (E), Measured (M), Calculated (C) INS: Insignificant

SPAIN

Biogas upgrading plant

Recovery activities I From contaminated land to usable space46

Recovery activities

The Incredible Edible movement, the brainchild of the British eco-nomist, Pam Warhurst, consists of planting vegetables, herbs and fruit trees in public spaces around the town of Todmorten. They are taken care of by vo-lunteers working two mornings a month. The town collects the produce free at harvest time.

4.1.4Fromcontaminatedlandtousablespace:

Keyfigures: 2010 2011 2012 *

Spain

Volume of decontaminated soil (m3) 715,000 686,400 710,600 C(1)

Decontaminated soil (mt) 325,000 312,000 323,000 M

Soil decontaminated on site 284,000 243,000 235,000 M

Soil decontaminated off site 41,000 69,000 88,000 M

Volume of water decontaminated (m3) 84,000 75,000 71,000 M

Portugal

Volume of soil decontaminated (m3) 110,000 33,000 33,000 C(1)

Soil decontaminated (mt): 50,000 15,000 15,000 M

Soil decontaminated on site 32,000 30,000 15,000 M

More than 30 towns in England have already joined the project.

incredibleedible


47Recovery activities I From contaminated land to usable space

Keyfigures: 2010 2011 2012 *

Soil decontaminated off site 4,500 0 0 M

Volume of water decontaminated (m3) 8,000 9,000 9,000 M

Scotland

Volume of soil decontaminated (m3) NAP NAP 55,000 C(1)

Soil decontaminated (mt): NAP NAP 25,000 M

Soil decontaminated on site NAP NAP 25,000 M

Soil decontaminated off site NAP NAP 0 M

Volume of water decontaminated (m3) NAP NAP 0 M


Comment: »(1)

- A factor of 2.2 was used to convert metric tonnes into m3 of decontaminated soil.

Cutting-edge soil remediation technology

The accelerated growth of cities has forced the land use of areas originally declared to be indus-trial to be changed. This, in addition to Royal Decree 9/2005 dated January 4th (which makes soil remediation compulsory for certain industries) and Spain’s draft bill on Waste and Contami-nated Soil (designed to avoid waste and reduce the adverse effects of waste generation and management), plus measures designed to reduce the global impact of the use of resources and improving the efficiency with

which they are used, have made it necessary to delimit the res-ponsibilities and costs associated with the potential sources of contamination to be found in soils and also, when applicable, to decontaminate them effecti-vely.

On the international scene, developing countries are begin-ning to become aware of environ-mental needs and are drafting development and investment plans in this realm. These coun-tries are also developing strategic plans for soil remediation and the recovery of ecosystems.

In response to these needs, the Group provides integrated soil remediation services ranging from detecting, specifying and assessing the hazards involved, to proposing and implementing remedial actions using the most suitable on-site (bioremediation, chemical oxidation, soil vacuum, etc) and ad situ (thermal desorp-tion, scrubbing, landfarming, etc) soil remediation techniques which, furthermore, respect the priority set forth in Royal Decree 9/2005 dated January 4th men-tioned earlier because they avoid the generation, transfer and disposal of waste in landfills.

Recovery activities I From contaminated land to usable space48

The Group also provides solu-tions designed to minimise the impact of industrial accidents and the ensuing dispersion of pollutants and thereby reduce any ensuing damage and risks.

In the course of these two years, the Group has consolidated its international growth and become one of the world’s foremost soil remediation companies with projects in Kuwait, Italy, England, Portugal and Spain.

R&D+i

The soil department is a partner in the EIADES scheme for envi-ronmental impact evaluations and the environmental restora-tion of contaminated sites (www.eiades.com), developed within the framework of R&D subsidies for research teams in the Region of Madrid pursuant to regulations 679/2009 dd February 19th issued by the Ministry of Educa-tion and coordinated by IMIDRA, the Madrid institute for food and farming R&D.

Services provided

Cutting-edge soil remediation technology:

Research, characterisation and •decontamination of subsoil by on-site remediation using the Group’s own equipment: multiphase extraction, soil va-cuum by extraction of volatile compounds, pumping, double pumping, bio-remediation, chemical oxidation. Excavation and off-site •treatment. Own machinery for applying •the different remediation techniques suitable for each project.

Soil remediation (Biscay, Spain)

49Recovery activities I From contaminated land to usable space

Mainenvironmentalpressures:Fromcontaminatedlandtousablespace

2010 2011 2012 2011 2012 2012 Units *

Diesel oil consumption(2) 0.09 0.08 0.08 0 0 0.15 I/mt M

Mains water consumption(2) 0.15 0.15 0.15 0.07 0.07 0.17 m3/mt M

Volume of re-used water(2) 0.11 0.11 0.11 1 1 0.13 m3/mt M

Electricity consumption(2) 0.48 0.50 0.51 0.48 0.48 0 kWh/mt M

SPAIN SCOTLAND(1)PORTUGAL(1)


Comments » (1) - This activity began in 2011 in Portugal and in 2012 in Scotland. (2) - The figures are per tonne of decontaminated soil.

Soil scrubbing (Sines, Portugal)

Disposal/Elimination activities50

Disposal/Elimination activities

A tool that promotes cooperation and goodwill amongst people in a community by enabling them to exchange services and activities, always using the same unit of ex-change and value for everyone: time.

4.2Disposal/Eliminationactivities

Keyfigures: 2010 2011 2012 *

mtofwastehandledinSpain

Hazardous & non-hazardous waste and SMW 632,179 504,313 424,644 M

mtofwastehandledinLatinAmerica M

Hazardous waste and SMW 746,960 805,554 762,930 M


This chapter refers to the hazar-dous waste disposal services provided by HERA. However, because some of the activities in these facilities concern the recovery of resources, and be-cause this report is organised according to the type of environ-mental factor that is recovered, this chapter only explains and gives indicators for the impact of such disposal activities upon sustainability. The upgrading activities that are also carried out in controlled landfills are analy-

sed in the respective chapter of this report: leachate treatment is discussed in chapter 4.1.2 From wastewater to clean water, and the energy upgrading carried out at the Group’s landfills in Spain is explained in chapter 4.1.3 From emissions to renewable energy.

In Spain

The HERA Group was created with a view to restoring the environment and providing thorough final treatment for municipal and industrial waste, thereby avoiding the adverse environmental impacts caused by uncontrolled landfills. With this in mind, the construction and operation of controlled landfills have been one of the Group’s main final disposal activities, together with the development

51Disposal/Elimination activities

of innovative management practi-ces and technologies.

To date, the Coll Cardús contro-lled landfill, the HERA Group’s first plant built in 1983, has dealt with more than 14 million tonnes of non-hazardous industrial and municipal waste whilst minimi-sing environmental impact and recovering as many resources as possible.

To mitigate the landfill’s environ-mental impact, the following steps are taken:

The facility is fitted with four •diffusers operating 24/7 that release a substance to capture odour molecules.

Since 2003 falconry has been •used to control the seagulls at the landfill, i.e. falcons, natural predators, are used to keep them away.

When the Vallés Occidental WTP started operating in November 2010 the SMW which had pre-viously been disposed of in the landfill were redirected to this plant to enable the recyclable elements found in this type of waste to be recovered. From then onwards, the waste entering the Coll Cardús CL – consisting of bales of the final waste produced by the WTP and non-hazardous industrial waste – was used to create the morphology authori-sed by the Vacarisses CL closure and landscaping plan. Work on the gradual closure of the landfill continues in conjunction with the

Geomodels joint research centre (an institute founded by the Universitat Politécnica de Cata-lunya, Universitat de Barcelona, DURSI (Departament de Universi-tat Recerca i Societat de la Información), and the IGME (Instituto Geológico Minero)). This research will determine the best way of ensuring stability during the final closure and sealing stages of the disposal basin. In this respect the Group’s Ecoinnovation Department is working to minimise the eco-foo-tprint caused by covering and closing the CL by employing local, renewable materials.

Since 2004 the Group has been operating its controlled landfill in Murcia – using the same criteria as at Coll Cardús – which is authorised to receive non-hazar-dous, pre-treated municipal waste that cannot be upgraded. All this is pursuant to Council Directive 1999/31/CE dated April 26th governing waste disposal, which makes it mandatory to reduce the disposal of bio-degra-dable waste entering landfills.

In November 2008, work began on relandscaping the old Isidre coalmines in Pujalt (Anoia, Barce-lona) by the controlled disposal of industrial and household waste. A total of 14 hectares are to be restored. This will offset the negative environmental impact caused when the topsoil origina-lly covering the coal seams was removed, and will make the area blend in with its surroundings by recreating the original morpholo-

gy and subsequently developing farming-based activities.

In June 2007 the Group built a new plant in Cantabria for the disposal of residual waste from the metallurgy and car industries.This plant features hazardous waste stabilisation and the physical, chemical and biological treatment of industrial effluents.

In Latin America

Another challenge faced by the Group has been its expansion into developing countries becau-se the technology used in Europe must be tailored to their social and economic circumstances whilst still complying with the environmental specifications of industrialised countries. In this period, HERA has focussed on certain strategic countries, particularly Brazil.

In November 2011, the Group carried out a strategic disinves-tment in Chile because its hazar-dous waste market was already very mature. HERA had been running a controlled landfill in Chile since 2002 and achieved a share of 65% in the hazardous waste market. The indicators of this country are not included in this edition of the report.

The Group has been present in Argentina for more than a de-cade and has a hazardous waste treatment and upgrading plant in Zarate. These facilities have grown constantly over this period and now feature an incineration


furnace, a controlled landfill, and physical and chemical treatment of PCB’s tailored to deal with the different types of hazardous waste produced, in addition to the R&D investment being made in new technologies such as recycling PVC.

On January 16th 2007 the Group’s Nuevo Mondoñedo controlled landfill 35 km from Bogotá (Colombia) was inaugura-ted. It handles the SMW from more than 40 towns in the area, the equivalent of some 900tm/day.

The Group has been active in Brazil since September 2009 when it opened an SMW treatment plant on a 149-hectare site in San Francisco do Conde (Salvador de Baía). During this period, the Group has been hired to manage the waste from its catchment area, including parti-cularly San Francisco do Conde y Candeias, in addition, its opera-tions in the recyclable waste market have grown to cater for industrial estates. In its third year of operations, the plant was already handling 120,000 mt/yr. In early 2009, the Group bought a 50% stake in a local company in southern Brazil specialised in hazardous waste management. In these two years, its facilities have been brought into line with HERA’s standards, trebling its turnover.

Industrial waste treatment complex (Río Negrinho, Brazil)

53Disposal/Elimination activities

Spain 2010 2011 2012 Units *

Electricity generated on-site consumed per mt of waste treated at CL

0.41 1.09 1.30 kWh/mt M

Bought-in electricity consumed per mt of waste treated at CL & disposal

1.41 0.69 0.79 kWh/mt M

Water consumed per mt of waste treated at CL & disposal

- Mains water 0.032 0.010 0.015 m3/mt M

- Recycled water (permeate) 0.144 0.149 0.132 m3/mt M

Raw materials consumed:

- Sulphuric acid 7,740 0 0 l M

- Soda 12,814 0 0 l M

- Salt 12 0 0 mt M

- Foam inhibitor 0 0 0 l M

- Slaked lime 260 20 38 mt M

- Quick lime 374 388 186 mt M

- Cement 0 0 0 mt M

- Diesel oil 33,156 34,028 32,461 l M

- Aggregates 231 249 0 mt M

- Gravel 794 328 215 mt M

Number of significant fuel, oil, chemical spills 0 0 1 M

Amount of waste generated by disposal activity:

- Stabilised sludge 6,046 5,220 4,534 mt M

- Evaporator concentrate 0 0 0 mt M

Significant emissions by type and weight (disposal activity):

- CO 126 143 143 Kg M

- NOX 454 516 516 Kg M

- SO2

333 379 379 Kg M

- SO2

<1.63 <1.63 <1.63 mg / Nm3 M

- NH3

0.15 0.15 0.15 mg / Nm3 M * Estimated (E), Measured (M), Calculated (C)

Mainenvironmentalpressures:Disposal/Eliminationactivities


LatinAmerica 2010 2011 2012 Units *

Electricity produced by biogas generation 0 0 0 kWh M

Volume of mains water per mt of treated waste 0.05 0.03 0.03 m3/mt M

Volume of re-used water per mt of treated waste 0.02 0 0 m3/mt M

Mains electricity per mt of treated waste 1.61 1.41 1.96 kWh/mt M

Consumption of raw materials (topsoil) 23,239 40,584 26,249 mt M

Number of significant fuel, oil and chemical spills 0 0 0 M * Estimated (E), Measured (M), Calculated (C)


In general the environmental impact of the Coll Cardús contro-lled landfill has fallen, mainly due to the reduction in the volume of waste treated at this controlled landfill. There are several reasons for this: the limits on the volume of waste handled, in compliance with the morphological survey, because the landfill is almost full; another reason is the economic crisis which has caused some industries to close and others to have less business, resulting in a reduction in the waste they generate. The third and final reason is the increasing environ-mental awareness of Vallès Occidental residents, who now separate their household waste better, enhancing selective rubbish collection.

During the operating period of the Coll Cardús CL, more than 50% of the biogas generated has been captured thanks to a field of 90 wells. Its useful life will end in the next two-year period and then it will be closed, at which

point gas release and capture will be at maximum levels.

The crisis in the industrial sector has also caused a reduction in the waste treated at the Murcia CL.

The residual waste produced is disposed of as follows:

Sludge generated by physi- •cal and chemical treatment is stabilised at the same plant or sent to a CL.Stabilised hazardous waste is •sent to a non-hazardous waste landfill.Evaporator sludge is sent to •the landfill.Water treated by physical and •chemical and biological pro-cesses then enters a public water course.

Mainenvironmentalpressures:Disposal/Eliminationactivities

55Logistics activities

Logistics activities

This scheme enables individual owners to rent out their cars, ta-king advantage of when their cars are parked and not in use.

4.3Logisticsactivities

Keyfigures: 2010 2011 2012 *

Wastetransferplants

Incoming waste (mt) 61,702 59,440 51,941 M * Estimated (E), Measured (M), Calculated (C)

Socialcar

Waste transfer plants

In order to facilitate the handling of hazardous waste from small producers and make transport more efficient, the Group incor-porated waste transfer into its activities.

In this period, HERA had several plants (Madrid, Toledo, Seville, Álava, Gijón and Galicia) that started out by collecting hazar-dous waste from small producers and were authorised, several years later, to transfer hazardous waste.

The purpose of these facilities is to provide transportation for hazardous waste and to bring together and facilitate the han-dling of small amounts of waste generated by small producers.

In 2009 the Group started opera-ting the Álava plant (able to store 410 m3/year) and began to build another plant in Galicia which, in addition to providing transfer ser-vices, also upgrades plastic, metal and car oil, and is able to handle 10,000 mt/yr – 7,000mt/yr

of which are reclaimed and subsequently recycled.

Both the paint and solvent reco-very plant and the precious metal recovery plant offer their custo-mers transfer services in addition to these main activities.

Logistics activities56

Mainenvironmentalpressures:Wastetransferplants

Spain 2010 2011 2012 Units *

Number of centres conducting transfer activities

6 6 6

Amount of electricity bought in (from the grid)

192,945 168,688 168,303 kWh E

Consumption of diesel oil per mt of waste collected

0.94 0.92 1.02 l/mt E

Total consumption of mains water 578 493 389 m3 M

Raw materials consumed:

- Absorbent materials 8.5 5 2 m3 C

- Solvents 8,600 5,600 3,200 l C

- Rags 540 100 40 Kg C

Number and volume of most significant accidental spills

6 spills, 180 l

1 spill, 650 l 5 spills, 1.200 l

C


57Commitment to stakeholders

HERA’s general management, in conjunction with the report coordination team, specified in the first edition that the informa-tion in this report is for the benefit of the following stakehol-ders: partners and equity provi-ders, customers, suppliers, em-ployees, public authorities, society, and social and economic entities. Until now, the sustainabi-lity reports published and the questionnaires posted on the HERA website have been the main channels used to communi-cate with stakeholders and enable them to participate in the report. However, with a view to

future editions, the Group aims to enhance its communication channels with these stakeholders by holding talks and specific meetings. The usual channels HERA uses to communicate with stakeholders are explained below together with the indicators deemed to be important in each instance.

Commitment to Partners and Equity Providers

HERA’s aim is to create value added by means of transparent management that respects both persons and the environment. This is demonstrated by the

increasing turnover generated by recovery activities in comparison with disposal activities (contro-lled landfills).

With a view to greater transpa-rency for partners, a committee was created in 2009 to advise upon and follow up the content of board meetings. For further details of this committee, see chapter 6. Governance.

Commitment to stakeholders

Group’s main figures (‘000 €) 2010 2011 2012 *

% shareholders' capital 30.46% 30.62% 31.28% M

Total assets 194,182 188,828 176,256 M

Turnover 96,328 90,754 74,807 M

EBITDA 13,500 13,020 12,570 C

Earnings distributed 1,517 1,967 138 M

Cost of finance 2,499 2,224 2,200 M

Group’s main figures


Residu’Art Award “From waste to Art”

Commitment to stakeholders58

Economic value created and distributed(1) (‘000 €) 2010 2011 2012 *

Direct economic value created 97,083 110,297 76,558 C

Economic value distributed 66,024 63,842 51,085 C

Economic value retained 31,058 46,455 25,473 C


Comments » (1) - Calculated according to GRI indicator EC1.

One of the Group’s aims for the next edition of the report is to provide figures for the economic wealth created and distributed at the regional level.

Turnover by area of business:

2010 2011 2012

44% 41%46%

38%

42%

38%

15% 14% 14%

Upgrading activities Disposal/Elimination activities Logistics activities


The backdrop to the period covered by this report was a worsening economic and finan-cial crisis in the European Union. The consequence for the HERA Group was a significant reduction in the amount of waste entering its facilities, together with a negative impact on the Group’s turnover and earnings. These very adverse circumstances drove the Group to rethink and streamline its management of procurement, production proces-ses and business support, resul-ting in total savings of €3 million during this period. As mentioned earlier, these measures enabled cost reductions one and a half times greater than the reduction in turnover, as a result of which our EBITDA fell by just 3%.

Cost-cutting has not prevented the Group from pursuing its efforts in the realms of health and safety, environmental pro-tection, and R&D and innovation in new technologies because in the medium and long term such measures not only foster a safe and stable environment but also make for more effective mana-gement.

The credit squeeze in the money markets together with higher levels of default in the industry continue to pose serious obsta-cles to the Group’s treasury management. Against this back-drop, the Group has continued to invest in its core businesses in compliance with a conservative policy of keeping its annual capital expenditure within the limits of its EBITDA. As a result, HERA has achieved its strategic aim of maintaining a reasonable

level of indebtedness that enables it to carry on being able to call upon its financial providers for the long-term financial backing needed to finance the core invest-ment projects in HERA’s business plan.

Turnover by region

Turnover by region(‘000 €) 2010 2011 2012 *

Spain 75,314 68,604 59,496 M

Europe 3,194 5,210 2,823 M

Latin America 17,820 16,940 8,972 M

Middle East NAP NAP 3,516 M

* Estimated (E), Measured (M), Calculated (C) NAP: Not applicable


The Group’s turnover by regions demonstrates its commitment to geographic diversification. In 2011-2012 it began soil remedia-tion activities in the Middle East (Kuwait). In the same period in Latin America, the Group trebled its turnover in Brazil whilst disinvest ment in Chile enabled the Group to reduce its leverage and finance other strategic investments. In Spain, the com-missioning of the Vallès Occiden-tal WTP together with the higher revenue generated by the reco-very of paint and steelworks dust, amongst others, helped keep turnover in Spain stable.

Commitment to customers

HERA makes an effort to ensure continuous improvement in the quality of their goods and servi-ces, and tries to cater for custo-mers’ needs by providing effi-cient, innovative solutions.

HERA conducts annual customer satisfaction surveys using a variety of methods according to the business or environmental activity and the type of customer. In the 2011-12 period, customer satisfaction surveys were carried out in the following areas and divisions:

Disposal activities in Spain: Annual surveys aimed at custo-mers using the Group’s transpor-tation, logistics, management and waste disposal services. These surveys feature very specific questions about operations and a few general questions about turnover and administrative matters to be answered on a scale of 1 to 10. Response rates are not very high (approximately 40%), but were complemented by statistics about incidents and complaints made by the custo-mer during the year. In recent years, the level of satisfaction has remained stable, at around 8.2 with an upward tendency.

Water treatment plants and laboratories: Survey methods are similar to those described above and the response rates are also rather low (about 40%), so the results were also complemented by statistics about incidents and complaints made by the custo-mer during the year. In recent years, customer satisfaction has

remained stable, at around 8.5 with an upward tendency.

Recovery of paint and solvents, recovery of precious metals and transfer activities: Survey me-thods were similar to those described above but with specific questions about their activity. Response rates varied depending on whether the customer inter-viewed was a large or small producer but nonetheless impro-ved (50% on average) and were also complemented by statistics about incidents and complaints made by the customer during the year. The level of satisfaction has remained stable in recent years at around 8.30.

Soil remediation: Surveys are conducted each year. The de-partment manager conducts a personalised face-to-face or telephone survey of key custo-mers and each year’s new custo-mers. Questions are open-ended (not rated on scales), and con-cern the services provided, punctuality, professional attitude/efficiency, price, sales advice and overall satisfaction. Other factors taken into account are proactive evaluations carried out by some customers and also customer complaints recorded by staff, the outcome of inspections and notifications from our customers. Because of the evaluation me-thod used, the response rate is 100%.


The level of overall satisfaction is positive. In the 2011-2012 period, particular emphasis was given to competitive pricing, support from local authorities, technical assis-tance and speedy delivery of reports.

Construction of wastewater treatment plants and production of Biogás Natural® (biometha-ne): The methodology was similar to that of other departments using surveys but in 2012 poten-tial customers were interviewed for the first time, regardless of whether they subsequently used the service or not, with a view to measuring their perception of how they were treated and the time and method used to provide an estimate. Response rates cannot be compared with those of other departments because they concern just a few projects with a larger technological component tailor-made for the customer. The results were positive with an average rating of 8/10 in 2011 and 8.3/10 in 2012. The results must, however, be viewed in the appropriate context and also taking into account the different methodology.

In general, customers’ as-sessment in all the areas surve-yed is positive. However, the results must be viewed with caution due to the low response rate, despite the attempts made to survey a representative sample of customers. For the next edi-tion of the report, the aim is to increase the response rate by improving and standardising the methods used to survey the Group’s different activities.

“Certified turnover during the period increased by 7%, in compliance with the provi-sions of standards UNE-EN ISO 14001 and UNE-EN ISO 9001, climbing to 64%”


Company ActivityISO

9001:08 Quality

ISO 14001 Environ-

ment

OHSAS 18001 Health and

SafetySA 8000

CSR

EMAS Environ-

ment

Accreditation ISO 17025

Laboratory

Accreditation ISO 17020 Inspection

Entities

HERA AMASA S.A Clean Tech Division / Water dept.

Design, construction management, installation and commission-ing of municipal, industrial and landfill wastewater treatment

plants, and after-sales service. Design, construction management, installation and commissioning of Biogás Natural®

HERA TRATESA S.A.U. Environmental services for industry

division / Water Treatment Plant dept.

Services provided: WTP management, industrial waste manage-ment, dismantling of industrial facilities, environmental research and consultancy; follow-up, monitoring and remediation of soils

and water tables. Sampling and analysis of waste, wastewater, underground water and potable water

HERA TRATESA S.A.U.Environmental services for industry

division / Operating dept.

Final disposal of non-hazardous industrial and municipal waste including: reception and control of non-hazardous industrial and

municipal waste; CL management; treatment of leachate and other wastewater from ancillary facilities and biogas capture

MEDIOIL LEVANTE S.L. Environmental services for industry


Final disposal of non-hazardous industrial and municipal waste including: reception and control of non-hazardous industrial and

municipal waste; and controlled landfill nagement

HERA TRATESA S.A.U. Environmental services for industry division / Waste management dept.

Provision of waste management services

INDURECO S.L.Environmental services for industry

division / MIW dept.

Collection, transportation and storage of hazardous and non-hazardous waste.

Treatment, recovery and sale of solvents and paint

HERA TRATESA S.A.U.Environmental services for indus-

try division / MIW dept./ Muriedas plant, Cantabria

Collection, transportation and storage of hazardous and non-hazardous waste

HERA TRATESA S.A.U.Contaminated soil division / Conta-

minated soil dept.

Research, soil remediation and environmental consultancy

HERA AILINCO, Argentina Presorting, admission control, incineration, stabilisation/solidifica-tion, physical and chemical treatment and final disposal in CLs of specific and non-specific industrial waste and PCB dechlorination

STL, S.A.E.S.P., Colombia Environmental analyses and surveys required by the competent environmental authorities

HERA SUL Tratamento de Resíduos Ltda.

Treatment and final disposal of class I and II waste in industrial landfill

HERA BRAZIL Management of administrative, accounting, commercial, financial, legal, technical and institutional procedures

TÜV Nord Cert Lloyd’s Register Quality Assurance Bureau Veritas Certification Under way SGS ICS ENAC IRAM IDEAM


Company ActivityISO

9001:08 Quality

ISO 14001 Environ-

ment

OHSAS 18001 Health and

SafetySA 8000

CSR

EMAS Environ-

ment

Accreditation ISO 17025

Laboratory

Accreditation ISO 17020 Inspection

Entities

HERA AMASA S.A Clean Tech Division / Water dept.

Design, construction management, installation and commissioning of municipal, industrial and landfill wastewater treatment

plants, and aftersales service. Design, construction management, installation and commissioning of Biogás Natural®

HERA TRATESA S.A.U. Environmental services for industry

division / Water Treatment Plant dept.

Services provided: WTP management, industrial waste management, dismantling of industrial facilities, environmental research and consultancy; followup, monitoring and remediation of soils

and water tables. Sampling and analysis of waste, wastewater, underground water and potable water

HERA TRATESA S.A.U.Environmental services for industry


Final disposal of nonhazardous industrial and municipal waste including: reception and control of nonhazardous industrial and

municipal waste; CL management; treatment of leachate and other wastewater from ancillary facilities and biogas capture

MEDIOIL LEVANTE S.L. Environmental services for industry


Final disposal of nonhazardous industrial and municipal waste including: reception and control of nonhazardous industrial and

municipal waste; and controlled landfill nagement

HERA TRATESA S.A.U. Environmental services for industry division / Waste management dept.

Provision of waste management services

INDURECO S.L.Environmental services for industry

division / MIW dept.

Collection, transportation and storage of hazardous and nonhazardous waste.

Treatment, recovery and sale of solvents and paint

HERA TRATESA S.A.U.Environmental services for indus

try division / MIW dept./ Muriedas plant, Cantabria

Collection, transportation and storage of hazardous and nonhazardous waste

HERA TRATESA S.A.U.Contaminated soil division / Conta

minated soil dept.

Research, soil remediation and environmental consultancy

HERA AILINCO, Argentina Presorting, admission control, incineration, stabilisation/solidification, physical and chemical treatment and final disposal in CLs of specific and nonspecific industrial waste and PCB dechlorination

STL, S.A.E.S.P., Colombia Environmental analyses and surveys required by the competent environmental authorities

HERA SUL Tratamento de Resíduos Ltda.

Treatment and final disposal of class I and II waste in industrial landfill

HERA BRAZIL Management of administrative, accounting, commercial, financial, legal, technical and institutional procedures

TÜV Nord Cert Lloyd’s Register Quality Assurance Bureau Veritas Certification SGS ICS ENAC IRAM IDEAM


Commitment to suppliers

Our relationship with suppliers is based on mutual involvement in facets of corporate social respon-sibility and respect for the envi-ronment. In this respect and with a view to increasing the Group’s involvement in the value chain of the services it provides, one of HERA’s aims for 2013 is to send questionnaires to the Group’s key suppliers to check the good practices of their corporate social responsibility management in

compliance with international standard SA8000. This initiative will also enable us to improve HERA’s awareness and involve-ment with suppliers.

In this respect, the procurement committee responsible for ensu-ring that the Group’s purchases(1) are based on financial, technical and environmental sustainability, is already starting to work with suppliers to improve their effi-ciency and rationalise the servi-ces they provide.

In response to the credit squeeze affecting the Spanish money markets, the HERA Group conti-nues to offer its suppliers flexible payment conditions giving them automatic access to bank finance at very advantageous rates.

Group’s key figures(‘000 €) 2010 2011 2012 *

Supplies 44,925 39,096 28,332 M

Outsourcing 25,152 26,449 22,480 M

Total costs 70,078 65,545 50,812 C * Estimated (E), Measured (M), Calculated (C)

Commitment to employees

One of the HERA Group’s main stakeholders consists of its own employees. This relationship is based on mutual commitment, respect and ethics in line with the best health and safety practices set forth in certification OHSAS 18001, and the management of corporate social responsibility in line with international standard SA 8000. The implementation of this standard in 2008 in the Group’s company with the largest number of employees (HERA Tratesa), involved the creation of the People Procedure which

details the processes used to recruit, incorporate and staff and assess their performance, all on the basis of equality. In 2009 this process was implemented throughout the Group in Spain.

According to the People Proce-dure guidelines, any complaint implying a possible breach of any basic right or any right related to human rights must use one of the three communication channels specified in the procedure, i.e. the immediate manager, the emplo-yee representative or the human resources department. Ultimately, the necessary investigation will

always be carried out by the human resources department. Such investigations usually involve interviews with the per-sons involved, joint meetings and subsequent follow-up calls. Human resources will ask the departments deemed necessary to cooperate in providing as much information as possible about the complaint submitted. No such case occurred in 2011. The Group’s report about a complaint investigated in 2012 showed that no basic rights had been breached.

To ensure continuous corporate

(1 )For information about this committee, see chapter 6. Governance


improvements in the realm of health and safety, the employees elected delegates to follow up and coordinate with the com-pany. The committees establish-ed specifically for this purpose are:

Works committees: The represen-tation of workers in Spain is organised by companies, each of which, according to current legislation, holds trade union elections every four years to choose their delegates. The number of delegates depends on the number of employees and the province in which they are situa-ted. Hence the representatives in Spain as a whole consist of 8 delegates and two committees with 9 and 5 members respecti-vely. As a result, 242 of the staff of 353 as of December 31st 2012 have trade union representation in spain.

“In Spain, 70% of employees are represented by works committees”

The employees’ representatives are in themselves a channel of communication to convey emplo-yees’ concerns to company management. Meetings are not held at regular intervals but convened whenever necessary to discuss matters of interest to either party.

Health and Safety Committees and Accident Prevention Com-mittees: HERA has two health and safety committees and 3 accident prevention committees consisting of equal numbers of company representatives and accident prevention delegates in

keeping with current legislation. Health and safety committees are responsible for:

Taking part in drafting, imple- •menting and assessing the company’s accident preven-tion plans and schemes.

Promoting methods and pro- •cedures designed to prevent accidents effectively by sug-gesting ways for the company to improve working conditions or remedy existing deficien-cies.

Like health and safety commit-tees, accident prevention com-mittees enable employees to participate and be consulted via their prevention representatives, and are established voluntarily by the company.

In late 2012, in agreement with these committees, HERA Tratesa (the Group’s largest company in terms of numbers of employees) conducted a survey of psycholo-gical risks in conjunction with the Employers’ Liability Insurance company, using the University of Barcelona’s mutual MC method. The aim was to pinpoint possible risks related to job functions and organisation that could affect employees’ health and wellbeing.

According to the findings of this survey, overall there are no noteworthy critical aspects although there is room for impro-vement in some divisions or areas of the organisation as regards communication, training and development, social impact of the Group, job requirements and

workplace conditions. The HERA management has decided to implement the necessary reme-dial measures gradually, giving priority to the company areas or divisions with the greatest num-ber of aspects calling for impro-vement. The HERA management also intends to extend this survey of psychological and social factors to the rest of the Group’s companies, setting 2013 as the target date for its companies in Spain.

Between late December 2009 and the present day, the HERA companies have established a Combined Accident Prevention department that covers the three main prevention areas (health and safety, industrial hygiene and ergonomics, and applied psycho-sociology) and carries out all the accident prevention activities and incorporates health and safety considerations throughout the Group.

After the Combined Accident Prevention department had been operating for one year, the com-panies’ prevention management system underwent the mandatory audit conducted by Laborprex auditors, and most aspects were rated excellent.


Total em-ployees Spain Europe

Latin America

Middle East Spain Europe

Latin America

Middle East *

By region

Number 357 12 49 NAP 353 15 65 11 C

By gender

Women 106 3 6 NAP 104 4 14 4 C

Men 251 9 43 NAP 249 11 51 7 C

By age

< 30 81 0 14 NAP 66 1 22 3 C

30-50 228 10 30 NAP 242 12 37 1 C

> 50 48 2 5 NAP 45 2 6 7 C

By working hours

Full time 313 10 NA NAP 315 13 NA NA C

Part time 44 2 NA NAP 38 2 NA NA C * Estimated (E), Measured (M), Calculated (C)

Comments: »Breakdown by country only available since 2011. Figures by type of contract not available. -

2011 2012

NAP: Not applicable / NA: Not available

Payroll by region (‘000 €) 2010 2011 2012 *

Europe 885 1,053 1,008 M

Middle East NAP NAP 621 M

Latin America 2,586 2,953 2,673 M

Spain 14,624 14,646 13,904 M

TOTAL 18,095 18,652 18,206 C* Estimated (E), Measured (M), Calculated (C)


Staff by region

2011

12%

3%3%2%

85%

15%

80%

2012

Latin América

Middle East

Europe

Spain

Staff by gender and region

71%

30%

SPAIN

70%

20122011

29%

73%

25%

75%

27%

EUROPE

64%

36%

MIDDLE EAST

78%

12%

88%

22%

LATINAMERICA

2011 2012

37,34

37,90

36,90 35,75

SPAIN LATIN AMERICA

Average age of staff

Comments »This information is not available for Europe and the Middle East. -

Comments »(1)

- Middle East began this activity in 2012.

(1)


The outlay on employees’ wages in this period has remained above €18 million and the distribution per country has shifted towards a slightly more globalised distribu-tion.

The percentage of female emplo-yees in comparison with male employees has increased in this period: up by 76% in Latin Ameri-ca and 7% in Europe.

HERA’s staff is young. Whereas the average age in Spain remai-ned virtually unchanged in 2011-2012 (37.9 in 2012), in Latin America it fell from 36.9 in 2011 to 35.75 in 2012.

Training

Training requirements are analy-sed each year and a training programme is drawn up including general-interest courses and specific seminars of a technical nature. The staff’s knowledge is updated every year in areas thought to be of particular interest such as occupational safety and environmental protec-tion. The Group’s commitment to cost cutting was applied to training too in this period but despite this, work continues on improving job profiles to ensure standard training in industrial accident prevention.

Average hours of training per employee(1) 2010 2011 2012 *

Occupational classifications:

Admin. and sales 1.37 5.17 0.93 C

Management 2.67 12.21 5.98 C

Production and maintenance 4.43 7.19 2.08 C

Technicians 3.97 5.04 1.76 C

TOTAL 2.20 4.72 1.35 C

* Estimated (E), Measured (M), Calculated (C) Comment: »

(1) - Figures only available for Spain.


Commitment to the authorities

The HERA Group tries to forge close links with the public autho-rities, particularly with the local and regional authorities in the sphere of influence of their environmental facilities. In this respect, in 2012, the HERA Group represented by the Vallès Occi-dental WTP temporary consor-tium contributed to the second edition of the Vacarisses Nature Guide (Spain) published by the Vacarisses town council in con-junction with Objectiu Natura and Plataforma Biodiversidad Virtual.

As part of its proactive approach to research, innovation and dissemination in the realm of municipal waste management, the HERA Group sponsored the

REINNOVA international confe-rence on innovative municipal waste management held in November 2011 and in the Rein-nova Sessions held in December 2012 organised by the public entities ARC (waste management agency of Catalonia) and CRVO (Vallès Occidental waste mana-gement consortium).

The Group develops R&D projects with a view to enhancing its exper-tise and creating sustainability by developing waste upgrading technologies that are technically, financially and environmentally feasible. The grants received in the period covered by this report are detailed together with the subsidi-sed activity in the respective section of the “HERA Group prof-ile” chapter.

The following comparative table of HERA’s transactions with the governments in the countries where it operates shows the Group’s increasing commitment to new technology R&D, as demonstrated by the 50% increa-se in the subsidies received from the government in 2011. The increases in tax paid are due to the sales of the facilities detailed in chapter 3.2., Scope of the Report.

Transactions with the Authorities (‘000 €) 2010 2011 2012 *

Payments made to Government (taxes) 506 3,279 1,127 C

Spain 286 2,857 838 M

Europe 8 175 21 M

Latin America 211 248 267 M

Middle East NAP NAP NAP

Subventions received from Government 94 139 134 C

Spain 94 139 134 M

Europe 0 0 0 M

Latin America 0 0 0 M

Middle East NAP NAP NAP * Estimated (E), Measured (M), Calculated (C) NAP: Not applicable


Commitment to society

The main aim of the services provided by the HERA Group is to safeguard the environment and people’s health and safety.

Despite the global economic recession we are currently im-mersed in, the HERA Group tries to continue the social activities it has started. Since 1989 the Group has been giving guided tours of its waste treatment plants to schools, universities, companies and public and private institu-tions. Whenever possible, new facilities feature an “environment room” to promote environmental knowledge amongst the general public. The Group believes that these places to inform, raise awareness and educate the public are necessary in order to promote people’s knowledge, awareness and commitment to sustainable resources.

On April 10th 2011, under the slogan “Plant a tree for the future”, a tree-planting session was held to raise awareness of the closure and subsequent reforestation of the Coll Cardús controlled landfill in Vacarisses. The tree-planting session was organised by the Vacarisses city authorities, the Consorcio de Residuos del Vallès Occidental and the HERA Group, and 115 local residents took part

Since its creation, the HERA Group has participated in forums, conferences and congresses, and collaborated with courses taught by acclaimed educational esta-

blishments and universities.

Specifically in 2011 and 2012 it participated as a teacher in the Master in Energy Efficiency and Sustainability run by Universidad Jaime I de Castellón.

The Group also sponsored the X Jornadas de Biometanización de Residuos Sólidos Urbanos “Bio-meta” conference organised by the University of Barcelona, coordinated the Foro de Exper-tos sobre Tratamiento de Lixivia-do de Vertedero de Residuo Sólido Urbano Forum organised by the CEDDET Foundation in conjunction with Spain’s Ministry of Science and Innovation and was a speaker at the Jornada de Técnica sobre Biometano confe-rence held at the AINIA technolo-gy centre in Valencia.

The biomethane conference was followed by a guided technology tour of the San Ramón Farm in Requena (Valencia), the location of the Agrobiomet R&D project in which the Group participates. For further details of this project, see chapter 4.1.3 From emissions to renewable energy.

The Group collaborates regularly with the ATEGRUS association and the ISRCER Foundation in forums, conferences, talks, round tables and studies in search of environmentally, economically, socially and culturally sustainable solutions for society.

In November 2012 HERA took part in the technical advisory committee of CONAMA’s 09 working party, coordinated by the Catalan association of econo-mists. This working party produ-ced the final document entitled “Caminando hacia un PIB verde...” (On track for a green GDP).

In 2008 the HERA Group incor-porated the Residu’Art awards into the International Festival of Artistic Recycling held each year in Barcelona and organised by the Drap-Art Association. The new artist and established artist prizes are awarded to two of the participants in the festival’s group exhibition. The aim of these awards is to make society realise that waste is a great resource that can even be transformed into art. The winning new artist

2012 Residu’Art Award, Amparo Sard. Established artist


and established artist in 2012 were chosen from amongst more than 223 projects from around the globe.

The HERA Group joined the UN Global Compact in 2006 driven by its commitment to the development and promotion of CSR by promoting and backing a series of essential values in the

realms of human rights, employ-ment, the environment and the fight against corruption. Since 2011 the progress report about the implementation of the 10 principles of the UN Global Compact has been submitted to Global Compact in the form of the sustainability report that the Group produces.

Action in Latin America

HERA’s landfills in Latin America, located in Argentina, Chile and Brazil, have an environment room visited by schoolchildren, univer-sity students, public authorities and entrepreneurs.

The Group’s activities in Argenti-na in 2012 included guided tours for students from two universities (Universidad Nacional de La Plata and Universidad del Salvador), and HERA helped sponsor Jardín de Infantes No 916 in the city of Zárate by providing a variety of donations to help its upkeep.

The Group is also actively invol-ved in the ECO program together with the environmental conserva-tion committee CICACZ to pro-mote environmental education with a view to achieving sustaina-ble development, management and certification of public and private educational establish-ments in the towns of Zarate and Campana (Argentina).

As a member of CAITPA (Cáma-ra Argentina de Industrias de Tratamiento para la Protección Ambiental), HERA participates in the Programa de Cuidado Res-ponsable del Medio Ambiente, Argentina.

In 2012, HERA made several donations in the zones where it operates in Brazil, including particularly: a large number of native plants donated on Interna-tional Environmental Day to reforest the São Francisco do Conde region, and a donation of rubbish bins to the town of Candeias to help keep the town clean. Both donations were

2012 Residu’Art Award, Quim Rifa. New artist


coordinated with the local Envi-ronment Department.

Patronage

Nature Guide. The HERA Group, represented by the Vallès Occi-dental WTP temporary consor-tium has collaborated with Objetiu Natura (Catalonia’s Association of Nature Photogra-phers, Spain) and Plataforma Biodiversidad Virtual in produ-cing the Vacarisses Nature Guide Volume 2: The butterflies of Vacarisses. The aim of this guide, published in conjunction with Vacarisses City Council (Spain), is to inform local residents, and particularly schoolchildren, about the region’s biodiversity.

International Artistic Recycling Festival organised by DRAP-ART, a non-profit-making association that promotes creative recycling by organising festivals, exhibi-tions and workshops. HERA is the festival patron and contribu-tes the Residu’Art award.

REINNOVA. Congress on Innova-tive Municipal Waste Treatment and Management and the Rein-nova Sessions. Both events are organised by ARC (Catalonia’s waste agency) and the Vallès Occidental Waste Consortium (Spain).

BIOMETA. 10th Conference on capturing biomethane from solid municipal waste, organised by the University of Barcelona.

DrapArt 2012 exhibition


Commitment to Social and Economic Institutions

The HERA Group demonstrates its commitment to social and economic institutions and also its stance on certain public policies by its involvement in the fo-llowing entities:

International

ABETRE Asociación Brasileña de Empresas de Tratamiento de Residuos.

ABLP Asociación Brasileña de Residuos Sólidos y Limpieza Pública.

ACIRNE Asociación Empresarial de Río Negrinho (Brazil).

CAITPA Cámara Argentina de Industrias de Tratamiento para la Protección Ambiental.

CICACZ Comité Interindustrial de Conservación del Ambiente de Campana y Zárate, Argentina.

A not-for-profit entity to promote cooperation and mutual unders-tanding between government, industry and the community, by focussing on safeguarding the environment and resources. The company HERA Ailinco is a board member.

CREA Consejo Regional de Inge-niería y Arquitectura de Brasil.

CRQ Consejo Regional de Quími-ca de Brasil.

PCR Programa de Cuidado responsable del Medio Ambiente de Argentina.

The Environment Committee of the Cámara de la Industria Quími-ca y Petroquímica (CIQyP) is the

body responsible in Argentina for implementing and running the programme Cuidado Responsa-ble del Medio Ambiente (CRMA). The Cámara Argentina de Indus-trias de Tratamiento para la Protección Ambiental (CAITPA) joined this programme in 2007 and has made considerable progress since then with impro-vements to different aspects of environmental assessment.

HERA takes part in the Programa de Cuidado Responsable as the representative of CAITPA on CIQyP’s environment committee.

Europe

ERFO European Recovered Fuel Organisation (Brussels).

ERFO is a non-profit-making association founded in 2001 by European producers of recovered solid fuel (RSF). Its main aim is to promote the production and use of RSF in Europe by participating in its standardisation and re-search projects. HERA is repre-sented in both the General As-sembly and the Board.

Through ERFO, HERA defends several stances:

The conviction that solid re- •covered waste (SRW) should not be subject to the end of waste procedure envisaged in the European waste directive. This could open the floodgates to less meticulous activities which constitute unfair com-petition to companies such as HERA that work to more exacting standards.

The need for a market study of •SRW in the EU with particular emphasis on demand.

The drafting of specific re- •gulations governing the CSR quality for each use

BREFs (best available techni- •ques reference documents) should include both CSR and BAT (best available technology).

Spain

Acció Natura This NGO works on biodiversity conservation and recycling projects. Jordi Gallego, HERA CEO and board member, is a member of this organisation’s board of trustees.

ACITRE Asociación Catalana de Instalaciones de Tratamiento de Residuos Especiales.

Association of the companies in the industrial waste sector in Catalonia, Spain which organises discussion groups to assess the issues affecting this industry.

AED Asociación Española de Directivos.

AEI PRODEMA Asociación Em-presarial Innovadora de Medio Ambiente de Navarra (Spain).

AEMA-RM Asociación de Empre-sas de Medio Ambiente de la Región de Murcia (Spain).

This business association was founded to bring together all the companies directly related to the environment in the region of Murcia. HERA Medioil Levante is one of the firms on the association’s board of directives.


ANGEREA Asociación de Gesto-res de Residuos de la Automo-ción (Spain).

ASEIGRAF Asociación Empresa-rial de Industrias Gráficas de Andalucía (Spain).

ASETRA Asociación de Empresas del Transporte y Aparcamiento de Asturias (Spain).

ATEGRUS Asociación Técnica para la Gestión de Residuos, Aseo Urbano y Medio Ambiente (Spain).

Barcelona Chamber of Commerce HERA is a member of the Barce-lona Chamber of Commerce’s Environment Committee (Spain).

Terrassa Chamber of Commerce of (Spain).

CASLEMA Asociación Castilla y León Medio Ambiente (Spain).

Non-profit-making trade associa-tion of firms in the Castile and León region of Spain making a clear contribution to the sustai-nable development of this region.

Club EMAS Association of EMAS-registered companies in Catalo-nia (Spain).

FEDETO Federación de Empresas de Toledo (Spain).

fGER (Foro Generadores de energía de residuos) HERA is the founder patron of this independent organisation created to promote the genera-tion of energy from any type of waste and to defend the entities that generate this energy.

fGER consists of a group of entities (companies, associations, consortia) united by the desire to unite the interests shared by companies, the authorities and the general public, to develop a framework in keeping with the “Energy and Climate” policy applied in the EU.

Fundación Empresa & Clima This foundation provides compa-nies in Spain with the necessary information and tools to deal with the challenges and com-mitments of climate change. HERA is in the Kyoto Club Mem-ber category and is a founder patron of the foundation.

Fundación Fórum Ambiental (FFA) The main aim of this non-profit-making body is to develop the Spanish environment industry by aligning public and private inter-ests with a view to contributing more value to society. HERA is a founder member of its board of trustees.

In 2011 and 2012, the FFA develo-ped a variety of activities culmi-nating in reports and proposals that were highly influential in the realm of waste management policies in both Catalonia and Spain.

One example is HERA’s active participation and permanent representation in the Waste and Climate Change think-tank held by Fundación Fòrum Ambiental.

HERA played an active part in drawing up amendments to the Spanish Draft Law 22/2011 gover-ning Waste and Contaminated Land in relation to the transposi-tion of the EU Directive 2008/98/EC about waste. This draft law made no reference to the connec-tion between waste and climate change, indeed, the words “clima-te change” did not appear in the wording of the draft law. Most of the proposed amendments were incorporated into Spanish Law 22/2011 now in force, for example:

Measures to deal with was- •te must be in keeping with strategies to combat climate change.

When drafting waste mana- •gement programs and plans, priority will be given to mea-sures that significantly reduce greenhouse gases.

The competent authorities •may establish economic, financial and tax measures to enable the waste industry to contribute to reducing green-house gases. For this purpose and other purposes specified in the law, taxes may be levied on the dumping and incinera-tion of household waste.


Within one year of said law •coming into force, the Spanish Government shall, after con-sulting the autonomous gover-nments and local corporations, submit to the Parliament a draft law setting forth systems enabling authorities to offset and exchange quotas of gre-enhouse gases related to the waste industry.

GERD Asociación Española de Gestores de Residuos de la Construcción y la Demolición.

ISR Spanish Institute for Resour-ce Sustainability Private foundation in Spain which focuses on sustainability tasks (environmental, economic, social and cultural), the use of resour-ces and the environment. The Foundation liaises between authorities, companies, the scientific world and society, and seeks common areas of unders-tanding. The HERA Group is on the board of trustees.

Governance76

Structure

The share capital of HERA HOL-DING HABITAT ECOLOGÍA Y RESTAURACIÓN AMBIENTAL S.L., the Group’s parent company, is €10,737,515 divided into the same number of shares, all fully subscribed and paid up. All shares confer the same voting and financial rights.

Group governance

The corporate governance bodies supervise that the organisation as a whole strives to achieve the Group’s essential and general objectives based on creating value by transforming waste into resources, satisfying customers and contributing to environmen-tal sustainability: the Group’s main commitment.

Group governance is attributed to the administrative bodies of the parent company: the General Shareholders’ Assembly and the Board of Directors.

The General Shareholders’ As-sembly is the company’s main representative body.

The General Assembly must meet once a year within the first 6 months of the financial year to discuss and take decisions about how the company is run, to distribute the earnings obtained the previous year, to appoint or dismiss external auditors, and in short, to study and approve the annual individual and consolida-ted accounts of the Company and the Group and, when appli-cable, to renew the Board of Directors.

When so instructed by the Chair-

man, the Secretary summons shareholders to the General Assembly, where they can ex-press their opinions freely and vote on the matters on the agenda.

Before and during the Assembly, the mandatory, legal documents are available to all shareholders for consultation.

Decisions taken by the General Assembly are valid once appro-ved.

The Board of Directors currently has twelve members: nine inter-nal and three external members (the CEO and two independent professionals).

The Board, by definition, must look after business and ensure the effectiveness of the policies it adopts, the implementation of the decisions taken and the execution of strategies by the CEO.

To do so, the Board encourages the Group’s different companies to be aware of society’s need to respect the environment. These companies’ activities therefore tend to safeguard the environ-ment: one of the Group’s own basic values.

Two members of the Board of Directors deserve a special mention:

The Executive Chairman • , appointed by the Board and currently entrusted with all its powers, except those that cannot be delegated by law or under corporate by-laws. This person is, therefore, the Group’s Managing Director

with the greatest executive functions.

The Chief Executive Officer • responsible for the manage-ment and implementation of the decisions taken by the company’s administrative bodies.

Mention must also be made of the Board Secretary entrusted with the powers set forth in the by-laws, and likewise those endowed upon this post by Spanish Corporate Law. Being a lawyer, the Secretary also ensures that the decisions taken by the entity’s administrative and gover-nance bodies are legal. The Group’s legal departments are answerable to the Secretary.

Governance

77Governance

Members of the Board of Directors

At the present time, the members of the HERA Holding Habitat, Ecología y Restauración Ambiental, S.L. Board of Directors are:

ChairmanPablo Solesio López-Bosch »

SpokespersonsJoan Albalate García » (1)

Maria Concepción Araujo Ameixeiras »Jorge Gallego Rubio » (1)

LOBOSAN S.L., represented by Juan Fº San Nicolás Santamaría »MAGECO GESTIÓN TOTAL S.L., represented by Gonzalo P. de Cañedo-Argüelles Osborne »MORJO S.L., represented by Carlos Torres-Quevedo López-Bosch »Nicolás Claudio Nowack Diez »Elvira Rodríguez-Borlado Zapata »SANCARMA S.L., represented by Fernando Sobrini Aburto »SOLAL S.L., represented by Rafael Valero Sin »

Board SecretaryManuel Pons Prat » (1)

Comments »- (1) External board member. - (2) No board member belongs to a minority.

17%

83%

Men

Women

17%

83%

Men

Women

Board of Directors by gender Board of Directors(2) by age

Under 30

30 - 50

Over 50

Governance78

The remuneration of Board members is governed by article 22.7 of the by-laws:

The annual remuneration of the Board of Directors shall consist of a set amount to be determined each year at the General Share-holders’ Meeting.

In addition, each year, the Board of Directors shall determine the actual remuneration to be recei-ved by each Board member which shall, in each instance, consist of (i) a set amount to be received for each Board meeting attended; and (ii) an amount which may differ in each instance, to be received by those board members who perform advisory and/or executive functions which require more time to be dedica-ted to the company.

Said remuneration shall be com-patible with the other professio-nal or labour payments which a Board member may receive for any other functions performed in the company.

An Advisory Committee has been created within the Board of Directors, the main mission of which is to deal with, advise on and monitor those matters which the Chairman of the Board deems to be important to the company. This committee also prepares the meetings of the Board of Direc-tors.

This advisory committee has between three and six members including the Chairman of the Board and the Chief Executive Office. The members of this committee may be individuals or

legal entities.

As regards the members of the advisory committee, a distinction is made between “regular mem-bers” entitled to attend all the committee meetings and “addi-tional members” entitled to attend all the committee meet-ings held to prepare Board meetings and whenever the Chairman of the Board requires their attendance.

This committee has a chairman who is the Chairman of the Board, and a secretary.

The members of the advisory committee are designated at the discretion of the Chairman of the Board, and the committee itself decides how it works.

The regular members of the advisory committee are:

The Chairman himself, Pablo •Solesio López-Bosch.The Chief Executive Officer, •Jorge Gallego Rubio.Board member MORJO S.L. •represented by Carlos Torres-Quevedo López-Bosch.

The additional members of the advisory committee are:

Board member SANCARMA •S.L. represented by Fernando Sobrini Aburto.Board member SOLAL S.L. re- •presented by Rafael Valero SinBoard member Manuel Pons •Prat

The Group’s Management

The Group’s management is the responsibility of the Chief Execu-

tive Officer, who, pursuant to the guidelines of the Board of Direc-tors and its Executive Chairman, has broad and sufficient powers to authoritatively manage all the Group’s activities and businesses through its different companies.

There are also several commit-tees answerable to the general management which supervise and monitor the environmental, social and financial matters which the Board considers to be impor-tant because of their strategic importance.

Management Committee: con-sists of the company’s most senior managers who meet each week to monitor economic matters, business objectives and important operating matters.

Procurement Committee: the main purpose of this committee is to supervise that the Group’s purchases comply strictly with its purchasing policy and according to an approach based economic, technical and environmental sustainability. The Procurement Committee meets on the second Tuesday of each month and checks all purchases over €12,000 made through the company’s intranet (Heranet). Purchases over €30,000 must necessarily be approved by the Procurement Committee. Should the Procure-ment Committee consider that a proposed purchase does not comply with the minimum requi-rements specified in the purchase procedure in force or that it was not negotiated correctly, the Committee may request additio-nal information or further nego-

79Governance

tiations with the intended su-pplier.

Accident Prevention and Safety Committee(3): the aim of this committee is to raise awareness about accident prevention amongst the department heads and middle management respon-sible for the company’s opera-tions. This committee also moni-tors indicators related to accidents and prevention, impor-tant aspects of employees’ health and safety, and the safety of facilities. This committee meets once a month and is attended by a permanent committee consis-ting of Operations management, Corporate Services management, the Quality, Environment and Safety manager, plus a floating committee consisting of Opera-tions managers and supervisors from different departments depending on the matters to be discussed. These meetings can also be attended by industrial safety officers and Combined Accident Prevention officers to provide technical advice and submit progress reports about incidents or items needing impro-vement.

The Group also has several facilities and divisions whose management systems have been certified in compliance with ISO 9001, ISO 14001, OHSAS 18001 and SA 8000 standards (see the table of the Group’s certifications on pages 62 and 63). Under these management systems, each Operations manager works once a year with the person in charge of the management system and

revises all the main aspects and suggested improvements concer-ning:

Internal and external audits.1. Fulfilment of quality, environ-2. mental and safety targets set by management. Evolution of system, quali-3. ty, environmental and safety indicators and the corporate social responsibility aspects stipulated in SA8000.Statistics and evolution of re-4. medial and preventive measu-res identified in the system.Customer satisfaction reports 5. and actions proposed.Assessment and certification 6. of suppliers. Environmental and occupatio-7. nal safety incidents and acci-dents. New aspects that may need monitoring.Reports on legal aspects of 8. environmental and occupatio-nal safety realms, and possible incidents.Important notifications to 9. interested parties about envi-ronmental issues.Notifications and consulta-10. tions with collaborators about corporate and industrial safety issues. Training plans and proposals. 11.

Partner office

To facilitate communication with its partners and potential inves-tors, the Group has a “Partner Office” located at Calle Numan-cia, 185, 6º, 08034 Barcelona.

This office deals with any queries partners may have about their relationship with the company, pays out dividends and, finally, measures partners’ satisfaction with the information they receive from the Company.

(3)This committee is also mentioned in chapter 5. Commitment to stakeholders. Commitment to employees.

Appendices80

Appendices

7.1 Other figures required by GRI

Summary of environmental indicators:

Indicator Description: 2010 2011 2012 2010 2011 2012 2010 2011 2012 Units

Estimated (E), Measured

(M), Calculated (C)

EN1 Materials used by weight or volume


6.88 7.00 4.88 NAP NAP NAP NAP NAP NAP mt C

- Calcium chloride 3.44 8.41 3.10 NAP NAP NAP NAP NAP NAP mt E

- Borax 0.04 0.11 0.04 NAP NAP NAP NAP NAP NAP mt M

- Sodium carbonate 0.08 0.05 0.05 NAP NAP NAP NAP NAP NAP mt M

- Sodium nitrate 0.08 0 0 NAP NAP NAP NAP NAP NAP mt M

- Sodium sulphide 0 18 17 NAP NAP NAP NAP NAP NAP mt M

- Chloride + iron sulphate 2,069 951 1,063 NAP NAP NAP NAP NAP NAP mt M

- Fixative reagent 1,440 648 340 NAP NAP NAP NAP NAP NAP l M

- Iron chloride 40% 7,700 250 130 NAP NAP NAP NAP NAP NAP Kg M

- Soda flakes 0.43 0.25 0.13 NAP NAP NAP NAP NAP NAP mt M

- Reagents 3,628 2,210 2,380 NAP NAP NAP NAP NAP NAP mt M

- Calcium oxide 9,070 22,561 16,472 NAP NAP NAP NAP NAP NAP mt M

- Sulphuric acid 7,740 0 0 NAP NAP NAP NAP NAP NAP l M

- Soda 12,814 0 0 NAP NAP NAP NAP NAP NAP l M

- Salt 12 0 0 NAP NAP NAP NAP NAP NAP mt M

- Foam inhibitor 0 0 0 NAP NAP NAP NAP NAP NAP l M

- Slaked lime 260 20 38 NAP NAP NAP NAP NAP NAP mt M

- Quick lime 547 597 485 NAP NAP NAP NAP NAP NAP mt M

- Cement 0 0 0 NAP NAP NAP NAP NAP NAP mt M

- Diesel oil 243,776 92,188 90,577 4,000 0 3,750 ND ND ND l M

- Aggregates 231 249 0 NAP NAP NAP NAP NAP NAP mt M

- Gravel 794 328 215 NAP NAP NAP NAP NAP NAP mt M

- Top soil 0 0 0 NAP NAP NAP 23,239 40,584 26,249 mt M

- Absorbent material 8,5 5 2 NAP NAP NAP NAP NAP NAP m3 C

- Solvent 8,600 5,600 3,200 NAP NAP NAP NAP NAP NAP l C

- Rags 540 100 40 NAP NAP NAP NAP NAP NAP Kg C

SPAIN EUROPE

81Appendices



(M), Calculated (C)

EN1 Materials used by weight or volume


6.88 7.00 4.88 NAP NAP NAP NAP NAP NAP mt C

- Calcium chloride 3.44 8.41 3.10 NAP NAP NAP NAP NAP NAP mt E

- Borax 0.04 0.11 0.04 NAP NAP NAP NAP NAP NAP mt M

- Sodium carbonate 0.08 0.05 0.05 NAP NAP NAP NAP NAP NAP mt M

- Sodium nitrate 0.08 0 0 NAP NAP NAP NAP NAP NAP mt M

- Sodium sulphide 0 18 17 NAP NAP NAP NAP NAP NAP mt M

- Chloride + iron sulphate 2,069 951 1,063 NAP NAP NAP NAP NAP NAP mt M

- Fixative reagent 1,440 648 340 NAP NAP NAP NAP NAP NAP l M

- Iron chloride 40% 7,700 250 130 NAP NAP NAP NAP NAP NAP Kg M

- Soda flakes 0.43 0.25 0.13 NAP NAP NAP NAP NAP NAP mt M

- Reagents 3,628 2,210 2,380 NAP NAP NAP NAP NAP NAP mt M

- Calcium oxide 9,070 22,561 16,472 NAP NAP NAP NAP NAP NAP mt M

- Sulphuric acid 7,740 0 0 NAP NAP NAP NAP NAP NAP l M

- Soda 12,814 0 0 NAP NAP NAP NAP NAP NAP l M

- Salt 12 0 0 NAP NAP NAP NAP NAP NAP mt M

- Foam inhibitor 0 0 0 NAP NAP NAP NAP NAP NAP l M

- Slaked lime 260 20 38 NAP NAP NAP NAP NAP NAP mt M

- Quick lime 547 597 485 NAP NAP NAP NAP NAP NAP mt M

- Cement 0 0 0 NAP NAP NAP NAP NAP NAP mt M

- Diesel oil 243,776 92,188 90,577 4,000 0 3,750 ND ND ND l M

- Aggregates 231 249 0 NAP NAP NAP NAP NAP NAP mt M

- Gravel 794 328 215 NAP NAP NAP NAP NAP NAP mt M

- Top soil 0 0 0 NAP NAP NAP 23,239 40,584 26,249 mt M

- Absorbent material 8,5 5 2 NAP NAP NAP NAP NAP NAP m3 C

- Solvent 8,600 5,600 3,200 NAP NAP NAP NAP NAP NAP l C

- Rags 540 100 40 NAP NAP NAP NAP NAP NAP Kg C

EUROPE LATIN AMERICA

NAP: Not applicable / NA: Not available / INS: Insignificant

Appendices82

EN3 Direct consumption of energy by main sources

Bought-in electricity 1,404,997 1,191,620 1,065,085 24,000 7,200 7,200 1,199,215 1,137,832 1,493,218 kWh M

Propane 1.19 1.05 0.63 0 0 0 0 0 0 mt M

Consumption of electricty generated by the plant

9,214,142 24,929,041 24,172,426 0 0 0 0 0 0 kWh C

Renewable electricity sold to grid 46,634,696 40,577,025 46,232,025 0 0 0 0 0 0 kWh C

EN8 Total water consumption by sources

Mains water 71,172 54,698 56,295 8,000 1,050 5,300 36,355 24,165 24,398 m3 C

Rainwater 0 15,768 10,461 0 0 0 0 0 0 m3 E

EN10 Percentage of total volume of water recycled and reused

Volume of water re-used 126,926 109,553 91,613 7,500 15,000 18,250 17.454 0 0 m3 C

Volume of water re-used as % of total water consumption

64% 61% 58% 48% 93% 77% 32% 0% 0% % C

EN18 Schemes to reduce greenhouse gas emissions and reductions achieved

Emissions avoided by energy upgrading 48,056 42,033 47,575 NAP NAP NAP NAP NAP NAP mt CO2

C

Emissions avoided by recycling materials

9,668 53,573 55,990 NAP NAP NAP NAP NAP NAP mt CO2

C

EN20 NOx, SOx and other significant emissions entering atmosphere by

type and weight

- Particles 0.01 0.01 0.02 NAP NAP NAP NAP NAP NAP mt M

- CO 0.16 0.15 0.16 NAP NAP NAP NAP NAP NAP mt M

- SO2

0.36 0.39 0.41 NAP NAP NAP NAP NAP NAP mt M

- NOX 0.50 0.53 0.55 NAP NAP NAP NAP NAP NAP mt M

- CO 1,523 679 679 NAP NAP NAP NAP NAP NAP mg / Nm3 M

- NOx 1,258 799 799 NAP NAP NAP NAP NAP NAP mg / Nm3 M

- COVs 3,592 2,290 2,290 NAP NAP NAP NAP NAP NAP mg / Nm3 M

- NH3

0.15 0.15 0.15 NAP NAP NAP NAP NAP NAP mg / Nm3 M

EN22 Total weight of waste generated by type and treatment method

- Water and solvent sent for upgrading 368 463 426 NAP NAP NAP NAP NAP NAP mt E

- CDW residue 551 701 108 NAP NAP NAP NAP NAP NAP mt M



(M), Calculated (C)

SPAIN EUROPE

83Appendices

EN3 Direct consumption of energy by main sources

Bought-in electricity 1,404,997 1,191,620 1,065,085 24,000 7,200 7,200 1,199,215 1,137,832 1,493,218 kWh M

Propane 1.19 1.05 0.63 0 0 0 0 0 0 mt M

Consumption of electricty generated by the plant

9,214,142 24,929,041 24,172,426 0 0 0 0 0 0 kWh C

Renewable electricity sold to grid 46,634,696 40,577,025 46,232,025 0 0 0 0 0 0 kWh C

EN8 Total water consumption by sources

Mains water 71,172 54,698 56,295 8,000 1,050 5,300 36,355 24,165 24,398 m3 C

Rainwater 0 15,768 10,461 0 0 0 0 0 0 m3 E

EN10 Percentage of total volume of water recycled and reused

Volume of water re-used 126,926 109,553 91,613 7,500 15,000 18,250 17.454 0 0 m3 C

Volume of water re-used as % of total water consumption

64% 61% 58% 48% 93% 77% 32% 0% 0% % C

EN18 Schemes to reduce greenhouse gas emissions and reductions achieved

Emissions avoided by energy upgrading 48,056 42,033 47,575 NAP NAP NAP NAP NAP NAP mt CO2

C

Emissions avoided by recycling materials

9,668 53,573 55,990 NAP NAP NAP NAP NAP NAP mt CO2

C

EN20 NOx, SOx and other significant emissions entering atmosphere by

type and weight

- Particles 0.01 0.01 0.02 NAP NAP NAP NAP NAP NAP mt M

- CO 0.16 0.15 0.16 NAP NAP NAP NAP NAP NAP mt M

- SO2

0.36 0.39 0.41 NAP NAP NAP NAP NAP NAP mt M

- NOX 0.50 0.53 0.55 NAP NAP NAP NAP NAP NAP mt M

- CO 1,523 679 679 NAP NAP NAP NAP NAP NAP mg / Nm3 M

- NOx 1,258 799 799 NAP NAP NAP NAP NAP NAP mg / Nm3 M

- COVs 3,592 2,290 2,290 NAP NAP NAP NAP NAP NAP mg / Nm3 M

- NH3

0.15 0.15 0.15 NAP NAP NAP NAP NAP NAP mg / Nm3 M

EN22 Total weight of waste generated by type and treatment method

- Water and solvent sent for upgrading 368 463 426 NAP NAP NAP NAP NAP NAP mt E

- CDW residue 551 701 108 NAP NAP NAP NAP NAP NAP mt M



(M), Calculated (C)



Appendices84

- WTP residue NAP 88,840 77,735 NAP NAP NAP NAP NAP NAP mt M

- Stabilised waste 2,879 2,844 3,059 NAP NAP NAP NAP NAP NAP mt C

- Stabilised sludge 12,352 8,498 7,989 NAP NAP NAP NAP NAP NAP mt M

- Concentrate generated by leachate dewatering

101,707 63,353 54,287 NAP NAP NAP NAP NAP NAP m3 M

EN23 Number and volume of most significant accidental spills

Number and volumes of spills 6 Spills

180 l

1 spill

650 l

6 spills

1.200 l

0 0 0 0 0 0 C



(M), Calculated (C)

SPAIN EUROPE

85Appendices

- WTP residue NAP 88,840 77,735 NAP NAP NAP NAP NAP NAP mt M

- Stabilised waste 2,879 2,844 3,059 NAP NAP NAP NAP NAP NAP mt C

- Stabilised sludge 12,352 8,498 7,989 NAP NAP NAP NAP NAP NAP mt M

- Concentrate generated by leachate dewatering

101,707 63,353 54,287 NAP NAP NAP NAP NAP NAP m3 M

EN23 Number and volume of most significant accidental spills

Number and volumes of spills 6 Spills

180 l

1 spill

650 l

6 spills

1.200 l

0 0 0 0 0 0 C



(M), Calculated (C)



Hazardous residue waste upgrading and disposal plant (Argentina)

Appendices86

Indicator Description: 2010 2011 2012 2010 2011 2012 2010 2011 2012 2011 2012 Value *

359.00 357.00 353.00 15.00 12.00 15.00 157.00 49.00 65.00 NAP 11.00 absolute C

LA1 Employees by gender

Men 240.53 251.00 249.00 NA 9.00 11.00 NA 43.00 51.00 NAP 7.00 absolute C

Women 118.47 106.00 104.00 NA 3.00 4.00 NA 6.00 14.00 NAP 4.00 absolute C

LA1 % employees by gender

Men 67.00 70.31 70.54 NA 75.00 73.33 NA 87.76 78.46 NAP 63.64 % C

Women 33.00 29.69 29.46 NA 25.00 26.67 NA 12.24 21.54 NAP 36.36 % C

LA1 Employees by age

under 30 NA 81.00 66.00 NA 0 1.00 NA 14.00 22.00 NAP 3.00 absolute C

30 - 50 NA 228.00 242.00 NA 10.00 12.00 NA 30.00 37.00 NAP 1.00 absolute C

50+ NA 48.00 45.00 NA 2.00 2.00 NA 5.00 6.00 NAP 7.00 absolute C

LA1 % employees by age

under 30 NA 22.69 18.70 NA 0 6.67 NA 28.57 33.85 NAP 27.27 % C

30 - 50 NA 63.87 68.56 NA 83.33 80.00 NA 61.22 56.92 NAP 9.09 % C

50+ NA 13.45 12.75 NA 16.67 13.33 NA 10.20 9.23 NAP 63.64 % C

LA1 Employees by age and gender

Women under 30 NA 34.00 25.00 NA NA NA NA 4.00 10.00 NAP NA absolute C

Women 30 - 50 NA 65.00 75.00 NA NA NA NA 2.00 2.00 NAP NA absolute C

Women 50+ NA 4.00 4.00 NA NA NA NA 0 1.00 NAP NA absolute C

Men under 30 NA 47.00 41.00 NA NA NA NA 10.00 12.00 NAP NA absolute C

Men 30 - 50 NA 163.00 167.00 NA NA NA NA 28.00 35.00 NAP NA absolute C

Men 50+ NA 44.00 41.00 NA NA NA NA 5.00 5.00 NAP NA absolute C

LA1 % employees by age and gender

Women under 30 NA 41.98 24.04 NA NA NA NA 28.57 45.45 NAP NA % C

Women 30 - 50 NA 28.51 72.12 NA NA NA NA 6.67 5.41 NAP NA % C

Women 50+ NA 8.33 3.85 NA NA NA NA 0 16.67 NAP NA % C

Men under 30 NA 58.02 16.47 NA NA NA NA 71.43 54.55 NAP NA % C

Men 30 - 50 NA 71.49 67.07 NA NA NA NA 93.33 94.59 NAP NA % C

Men 50+ NA 91.67 16.47 NA NA NA NA 100.00 83.33 NAP NA % C

LA1 Average age of employees 37.70 37.34 37.90 NA NA NA NA 36.90 35.75 NAP NA absolute C

Summary of indicators of labour practices and dignified employment:

SPAIN EUROPE

87Appendices


359.00 357.00 353.00 15.00 12.00 15.00 157.00 49.00 65.00 NAP 11.00 absolute C

LA1 Employees by gender

Men 240.53 251.00 249.00 NA 9.00 11.00 NA 43.00 51.00 NAP 7.00 absolute C

Women 118.47 106.00 104.00 NA 3.00 4.00 NA 6.00 14.00 NAP 4.00 absolute C

LA1 % employees by gender

Men 67.00 70.31 70.54 NA 75.00 73.33 NA 87.76 78.46 NAP 63.64 % C

Women 33.00 29.69 29.46 NA 25.00 26.67 NA 12.24 21.54 NAP 36.36 % C

LA1 Employees by age

under 30 NA 81.00 66.00 NA 0 1.00 NA 14.00 22.00 NAP 3.00 absolute C

30 - 50 NA 228.00 242.00 NA 10.00 12.00 NA 30.00 37.00 NAP 1.00 absolute C

50+ NA 48.00 45.00 NA 2.00 2.00 NA 5.00 6.00 NAP 7.00 absolute C

LA1 % employees by age

under 30 NA 22.69 18.70 NA 0 6.67 NA 28.57 33.85 NAP 27.27 % C

30 - 50 NA 63.87 68.56 NA 83.33 80.00 NA 61.22 56.92 NAP 9.09 % C

50+ NA 13.45 12.75 NA 16.67 13.33 NA 10.20 9.23 NAP 63.64 % C

LA1 Employees by age and gender

Women under 30 NA 34.00 25.00 NA NA NA NA 4.00 10.00 NAP NA absolute C

Women 30 - 50 NA 65.00 75.00 NA NA NA NA 2.00 2.00 NAP NA absolute C

Women 50+ NA 4.00 4.00 NA NA NA NA 0 1.00 NAP NA absolute C

Men under 30 NA 47.00 41.00 NA NA NA NA 10.00 12.00 NAP NA absolute C

Men 30 - 50 NA 163.00 167.00 NA NA NA NA 28.00 35.00 NAP NA absolute C

Men 50+ NA 44.00 41.00 NA NA NA NA 5.00 5.00 NAP NA absolute C

LA1 % employees by age and gender

Women under 30 NA 41.98 24.04 NA NA NA NA 28.57 45.45 NAP NA % C

Women 30 - 50 NA 28.51 72.12 NA NA NA NA 6.67 5.41 NAP NA % C

Women 50+ NA 8.33 3.85 NA NA NA NA 0 16.67 NAP NA % C

Men under 30 NA 58.02 16.47 NA NA NA NA 71.43 54.55 NAP NA % C

Men 30 - 50 NA 71.49 67.07 NA NA NA NA 93.33 94.59 NAP NA % C

Men 50+ NA 91.67 16.47 NA NA NA NA 100.00 83.33 NAP NA % C

LA1 Average age of employees 37.70 37.34 37.90 NA NA NA NA 36.90 35.75 NAP NA absolute C

EUROPE LATIN AMERICA MIDDLE EAST


Appendices88

LA1 Employees by working hours

Part time NA 44.00 38.00 NA 2.00 2.00 NA NA NA NAP NA absolute C

Full tiime NA 313.00 315.00 NA 10.00 13.00 NA NA NA NAP NA absolute C

% part time NA 12.32 10.76 NA 16.67 13.33 NA NA NA NAP NA % C

% full time NA 87.68 89.24 NA 83.33 86.67 NA NA NA NAP NA % C

LA1 Part time employees by gender

Men NA 19.00 23.00 NA NA NA NA NA NA NAP NA absolute C

Women NA 25.00 15.00 NA NA NA NA NA NA NAP NA absolute C

LA1 % part time employees by gender

Men NA 43.18 70.54 NA NA NA NA NA NA NAP NA % C

Women NA 56.82 29.46 NA NA NA NA NA NA NAP NA % C

LA2 Employee turnover

Incoming staff NA 83.00 86.00 NA 0 0 NA 2.00 3.00 NAP NA absolute C

Outgoing staff NA 65.00 80.00 NA 2.00 3.00 NA 7.00 19.00 NAP NA absolute C

% turnover NA 33.71 37.81 NA 25.00 20.00 NA 18.37 32.23 NAP NA % C

LA2 % staff rotation by gender

Men NA 76.35 22.29 NA 25.00 20.00 NA 77.78 54.55 NAP NA % C

Women NA 23.65 77.71 NA 0 0 NA 22.22 45.45 NAP NA % C

LA13 % women on board of directors 17 17 17 17 17 17 17 17 17 % C

LA13 Age of Board members

under 30 0 0 0 0 0 0 0 0 0 % C

30 - 50 50 50 50 50 50 50 50 50 50 % C

50+ 50 50 50 50 50 50 50 50 50 % C

LA7 Rates of absenteeism, industrial di-seases, days' sick leave and deaths

Days' sick leave per worker due to industrial diseases

Men 0 0 42.58 NA NA NA NA 580.34 619.47 NAP 0 absolute C

Women 0 0 0 NA NA NA NA 0 0 NAP 0 absolute C

Days' sick leave per worker due to accident

Men 1.33 1.53 0.66 NA NA NA NA 1.52 2.41 NAP 0 absolute C

Women 0.07 0 0.04 NA NA NA NA 0 0 NAP 0 absolute C

Absenteeism rate 2.40 1.71 1.47 NA NA NA INS INS INS NAP NA rate C


SPAIN EUROPE

89Appendices

LA1 Employees by working hours

Part time NA 44.00 38.00 NA 2.00 2.00 NA NA NA NAP NA absolute C

Full tiime NA 313.00 315.00 NA 10.00 13.00 NA NA NA NAP NA absolute C

% part time NA 12.32 10.76 NA 16.67 13.33 NA NA NA NAP NA % C

% full time NA 87.68 89.24 NA 83.33 86.67 NA NA NA NAP NA % C

LA1 Part time employees by gender

Men NA 19.00 23.00 NA NA NA NA NA NA NAP NA absolute C

Women NA 25.00 15.00 NA NA NA NA NA NA NAP NA absolute C

LA1 % part time employees by gender

Men NA 43.18 70.54 NA NA NA NA NA NA NAP NA % C

Women NA 56.82 29.46 NA NA NA NA NA NA NAP NA % C

LA2 Employee turnover

Incoming staff NA 83.00 86.00 NA 0 0 NA 2.00 3.00 NAP NA absolute C

Outgoing staff NA 65.00 80.00 NA 2.00 3.00 NA 7.00 19.00 NAP NA absolute C

% turnover NA 33.71 37.81 NA 25.00 20.00 NA 18.37 32.23 NAP NA % C

LA2 % staff rotation by gender

Men NA 76.35 22.29 NA 25.00 20.00 NA 77.78 54.55 NAP NA % C

Women NA 23.65 77.71 NA 0 0 NA 22.22 45.45 NAP NA % C

LA13 % women on board of directors 17 17 17 17 17 17 17 17 17 % C

LA13 Age of Board members

under 30 0 0 0 0 0 0 0 0 0 % C

30 - 50 50 50 50 50 50 50 50 50 50 % C

50+ 50 50 50 50 50 50 50 50 50 % C

LA7 Rates of absenteeism, industrial di-seases, days' sick leave and deaths

Days' sick leave per worker due to industrial diseases

Men 0 0 42.58 NA NA NA NA 580.34 619.47 NAP 0 absolute C

Women 0 0 0 NA NA NA NA 0 0 NAP 0 absolute C

Days' sick leave per worker due to accident

Men 1.33 1.53 0.66 NA NA NA NA 1.52 2.41 NAP 0 absolute C

Women 0.07 0 0.04 NA NA NA NA 0 0 NAP 0 absolute C

Absenteeism rate 2.40 1.71 1.47 NA NA NA INS INS INS NAP NA rate C




Appendices90

Accident rate

Men 18.52 23.31 15.69 NA NA NA NA 7.54 7.66 NAP 0 rate C

Women 1.79 5.55 2.74 NA NA NA NA 0 2.74 NAP 0 rate C

Deaths 0 0 0 0 0 0 0 0 0 NAP 0 absolute C

LA10 Ave. hours training/employee

Admin. and sales

Men 0.29 18.60 2.32 NA NA NA NA NA NA NAP NA absolute C

Women 8.85 1.85 1.73 NA NA NA NA NA NA NAP NA absolute C

Management absolute C



Production and maintenance absolute C



Technicians absolute C



Comments: » - LA1 indicator by contract not available.

- LA2 indicator by age group not available.

- Absenteeism in Latin America is very low and considered to be insignificant (INS).

- The Middle East project (Kuwait) started in 2012.

- Figures about independent contractors not available.

- Sick leave per worker counted in calendar days (including work days and feast days).

- Sick leave due to accident is counted from day sick leave is confirmed by insurance company, usually the day after the accident.

- Industrial accidents and diseases are recorded and notified in Spain pursuant to legal provisions of regulations TRE/241/2007.


SPAIN EUROPE


91Appendices

Accident rate

Men 18.52 23.31 15.69 NA NA NA NA 7.54 7.66 NAP 0 rate C

Women 1.79 5.55 2.74 NA NA NA NA 0 2.74 NAP 0 rate C

Deaths 0 0 0 0 0 0 0 0 0 NAP 0 absolute C

LA10 Ave. hours training/employee

Admin. and sales



Management absolute C



Production and maintenance absolute C



Technicians absolute C






Appendices92

7.2 Basic GRI grid of contents

Indicator Page in report Comments

Strategy and analysis

1.1 5 - 9

1.2 7 - 9

Organisation profile

2.1 18

2.2 18 - 20

2.3 21

2.4 back cover

2.5 10, 18 - 20

2.6 18

2.7 18 - 20

2.8 57 - 59, 66 - 67

2.9 17

2.10 NAP

Report parameters

3.1 16

3.2 16

3.3 16

3.4 2

3.5 16, 57

3.6 17 - 22

3.7 16 - 17

3.8 17

3.9 The tables of environmental, social and economic indicators specify whether the figures are measurements,

calculations or estimates. If the Protocols are not followed, the calculations are explained.

The following table of equivalents shows the pages in this report related to the B indicators in the “Guide for drafting Sustainability Reports” (ed. 3.1.).

93Appendices

3.10 17 Specified in the respective chapter when applicable

3.11 17 Specified in the respective chapter when applicable

3.12 3

3.13 16

Governance, commitments and stakeholder participation

4.1 74 - 77

4.2 74

4.3 74 - 77

4.4 74 - 77

4.5 76

4.6 NA

4.7 NA

4.8 6, 64

4.9 76 - 77

4.10 76 - 77

4.11 62 - 63, 76 - 77

4.12 70 - 73

4.13 70 - 73

4.14 57

4.15 57

4.16 60 - 73

4.17 60 - 65

Management approach

5.1 Economic performance 57 - 60

5.2 Environmental performance

23 - 56

5.3 Social performance 60 - 73


Appendices94

Performance indicators

Economic (EC)

EC1 58

EC4 69

Environmental (EN)

EN1 78 - 79

EN3 80 - 81

EN8 80 - 81

EN10 80 - 81

EN18 80 - 81

EN20 80 - 81

EN22 82 - 83

EN23 82 - 83

EN26 Specified in the respective chapter together with the table of main environmental pressures

Labour practices and decent work (LA)

LA1 86 - 87

LA2 86 - 87

LA7 86 - 87

LA10 88 - 89

LA13 86 - 87

Society (SO)

SO5 8, 73

Product responsibility (PR)

PR5 60 - 61

Human rights (HR)

HR11 64 - 65


95Appendices

7.3 Glossary

Biogas

Biogas is combustible gas produ-ced naturally or in specific facili-ties by the biodegradation of organic matter due to the action of micro-organisms (methanoge-nic bacteria, etc) and other factors in the absence of air (i.e. an anaerobic setting). When organic matter rots in the absen-ce of oxygen, the action of this type of bacteria generates bio-gas.

CL

Controlled landfill. Rubbish tip.

Anaerobic digestion

Biological decomposition of organic matter in the absence of oxygen, producing biogas as a by-product. Bio-methanisation.

Digestate

Anaerobic digestion happens when the bacterial microorga-nisms found in faecal matter act upon organic waste of animal and plant origin and produce a mixtu-re of gases with a high-methane content (CH4) called biogas: a very efficient fuel. The waste generated by this process (diges-tate) has a high level of nutrients and organic matter (ideal as fertilizer) which can be applied fresh because the anaerobic treatment eliminates any unplea-sant odour and the proliferation of flies.

WWTP

Wastewater treatment plant

EMAS

A voluntary environmental mana-gement system enabling organi-

sations to assess and improve their environmental performance and convey the necessary infor-mation to the public and other interested parties. This environ-mental management system, known internationally as EMAS (Eco-Management and Audit Scheme) is promoted by the European Community.

OFMW

Organic fraction of municipal waste.

R&D+i

Research, development and technological innovation

ISO 14001

Standard approved by the ISO (International Organization for Standardization) setting forth a standard, voluntary environmen-tal management system designed to improve corporate environ-mental behaviour, taking into account the requirements of the interested parties or stakeholders within a philosophy of continuous improvement.

ISO 9001

Standard approved by the ISO (International Organization for Standardization) setting forth a standard, voluntary quality management system whose main aim is, within the organisation’s own aims, to achieve customer satisfaction according to a philo-sophy of continuous improve-ment.

WWTP sludge

Liquid sediment containing the solids obtained from sedimented

or decanted wastewater or from a biological reactor at a house-hold or industrial wastewater treatment plant.

CDM (clean development me-chanisms)

A flexible mechanism contempla-ted in the Kyoto Protocol based on projects. When an industriali-sed country invests in clean development mechanisms in a developing country the reduction in the pollution stemming from this investment is certified and can be exchanged for emission credits in the company’s country of origin or another of the coun-tries in which it operates.

OHSAS 18001

OHSAS standard setting forth the requirements for an occupational safety management system enabling organisations to control their occupational safety and improve their performance.

Reverse osmosis

Osmosis is a physical and chemi-cal phenomenon consisting of the movement of water – the solvent of a solution – across a membrane which is semi-per-meable to the solvent (water) but not the solute.

This is what happens in normal situations when pressure is equal on both sides of the membrane, but if pressure increases on the side of the higher concentration, water can be forced through from the high concentration to the low concentration side.

This can be said to be the oppo-site of osmosis, hence the name,

Appendices96

reverse osmosis. It must be remembered that in reverse osmosis, only water goes through the semi-permeable membrane. In other words, water moves from the more-concentrated to the less-concentrated solution.

Re-use

The minimisation of waste by using materials or objects used previously.

SMW

Solid municipal waste.

SA 8000

Standard issued by Social Ac-countability International setting forth voluntary guidelines for organisations who wish to incor-porate corporate social responsi-bility considerations into their management system and have them accredited by independent bodies.

mt

Metric tonne.

Ad situ remediation

Excavation and remediation of contaminated soil on site.

Ex situ remediation

The contaminated soil is excava-ted and a certified handling company treats it elsewhere.

Physical and chemical treatment

Water treatment process combi-ning physical methods with the addition of chemicals in order to reduce the contamination in the water.

In situ remediation

The contaminated soil is not excavated but decontaminated using boreholes.

TC

Temporary consortium of compa-nies (Spanish: UTE).

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Memoria de Sostenibilidad I 2011-2012

Sustainability Report 2011 - 2012

Technology

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