Our material issues

Our materiality analysis is the roadmap that reflects the most important areas of work on environmental, social and governance (ESG) issues, allowing us to adapt to changes in the environment and the expectations of our stakeholders. We are aware that the context in which we operate has changed, especially after the pandemic and its aftermath. This is why, during 2022, we updated our material issues, an exercise that is valid for two years and will therefore be updated again in 2024.
Below, we detail how we carried out the process of identifying and prioritizing these, and the key issues for the permanence of our business over time.

Process:

The identification process to establish our material issues is based on the principle of double materiality and consisted of four steps:

Context analysis: In order to understand the operational and global context in which Celsia finds itself, identify key trends, risks, impacts and opportunities, and build a preliminary list of potentially material issues, we took into account the company’s strategic risks and benchmarked mega trends and global, sector and national sustainability context. We delved into the issues on which standards, norms and frameworks are focusing, understood the ESG risk landscape of the countries in which we operate, and, finally, analyzed the material issues of peer companies, to have a 360-degree view of the short, medium and long term outlook.

Sesions with internal leaders: We conducted 29 interview sessions with leaders of different prioritized teams to identify with them the ESG impacts, risks and opportunities they see latent in Celsia, we asked them about their expectations regarding sustainability in 2030 and we presented the list of potential material issues that we obtained as a result of the context analysis phase to make a first prioritization of topics and subtopics with them.

Engagement with stakeholders: We spoke with different stakeholders to have a space for engagement, in which we listened carefully to the ESG issues where they saw a positive or negative impact of Celsia, and what opportunities and risks they identified for the permanence of the business in the long term, based on the knowledge they have thanks to the engagement.

Prioritization and validation: Finally, with the inputs collected during the first three phases, we systematized and weighted the results. Based on these, we constructed the materiality matrix, taking into account the company’s impacts on the economy, the environment and people, the risks and opportunities for Celsia and the influence of each issue on stakeholders.

Our approach for this exercise was based on double materiality, we identified the impacts that Celsia generates on the environment and society and at the same time we identified the impact that these issues have financially on the company.

This exercise was carried out in the company of an independent third party expert on the subject.

Our material issues

• Climate change management: from mitigation, we promote the use and consumption of clean energy, contributing to the decarbonization of energy and the economy. From adaptation, we prepare and respond to climate variations that may affect the service, due to climate-related events, water resource availability or natural disasters.
• Biodiversity and ecosystem services: we focus on the preservation, information assurance and care of the fauna and flora in the biological corridors where we are present. We know that no net loss of biodiversity is the basis for any action, so we address biodiversity risks from the early stages of projects and throughout their life cycle.

• Celsia culture: we seek to promote and guarantee diversity and equal opportunities for our teams, developing capabilities in a changing context, respecting human rights at all times and providing the best experience for our employees.
• Development partners: through a good relationship with our communities, we seek to avoid actual or potential negative impacts on human rights that may be caused during the stages of our value chain. Being development partners refers to how we create social value through social investment, local employment generation, and works for taxes.
• Health and safety in operations: safety is a vital and non-negotiable value. Our main objective is that our employees and contractors return home healthy every day, and that our products and services maintain the highest quality standards to care for the communities in which we operate.

• Diversification and expansion of our business: we are a player in the country’s energy revolution, so we offer a diversified generation matrix, with innovative and efficient services to ensure the necessary resources for our operation.
• Innovation and technology: through technology and digitalization, we seek to diversify our services and improve our performance, simplifying procedures and processes and responding quickly to requests, as well as the operational context. Technology of course leads to greater risks related to information, so cybersecurity plays a vital role behind our management.

Supplier management is one of the pillars for Celsia. We seek long-term sustainable growth that seeks to ensure the sustainability of our supply chain, with timely management of risks that may arise, through continuous improvement of administrative, ethics and conduct, commercial, technical, environmental, productive and financial competencies, ensuring the promotion and respect for human rights.

As part of our culture, we want to turn our customers into fans of Celsia, so our vision is focused on delivering an agile, easy, effective and memorable experience during their relationship with our company. We achieve this in large part by providing quality, uninterrupted service, integrated with the national electricity system and with full availability for our current customers, as well as expanding our service offerings for potential customers.

It contemplates the physical security of the operation, as well as the proactive analysis of the political environment in relation to changes or updates at the regulatory or legal level of the country’s electricity sector.

Focuses on generating value for all our stakeholders through the development of profitable and eco-efficient activities that respond to the needs of the market and our customers.

Our Stakeholders participated in the materiality exercise

Aware that the materiality analysis is a dynamic, participatory exercise that supports the execution of the strategy, we held interviews and focus groups with our stakeholders, complementing the inputs obtained in these with surveys. As a result, we obtained the key issues that are important to our stakeholders, either because they see them as an opportunity or a risk for Celsia, or because they see them as a positive or negative impact that we generate.

The stakeholders that participated in the process were communities, State, collaborators, shareholders, suppliers, contractors, customers and our corporate group, with representatives of Odinsa, Cementos Argos and Grupo Argos. The stakeholders we involved were prioritized based on the AA1000(SES) Accountability standard, characterizing them according to the methodology by: dependence, responsibility, tension, influence and perspective of each actor.

GRI 2-29 The following is a detail of the exercise carried out:

The key issues highlighted by all Stakeholders are: Biodiversity, Development Partners and Climate Change.

In order to get to know our stakeholders better and strengthen the relationship, during 2022 we carried out a characterization and prioritization exercise and identified their particularities, the communication channels they prefer, and focused both the information we send them and the information we receive from them, in order to achieve a more personalized and timely interaction.

This exercise resulted in the identification of the following stakeholders:

To learn more about the stakeholders clic here