Consolidated financial
statements
for the year ended 31
December 2024
Consolidated financial statements. 2024
1
Redeia Corporación, S.A. and subsidiaries
Consolidated statement of financial position at 31 December 2024
Thousands of euros
Assets
Note
31 Dec. 2024
31 Dec. 2023
Non-current assets
Intangible assets
6
492,182
826,267
Property, plant and equipment
7
9,753,148
9,990,817
Investment properties
9
558
558
Investments accounted for using the equity method
10
803,500
969,177
Non-current financial assets
18
445,092
341,014
At fair value through other comprehensive income
76,194
78,196
At fair value through profit or loss
17,696
12,884
At amortised cost
351,202
249,934
Non-current derivatives
19
20,984
83,982
Deferred tax assets
22
30,937
46,253
Other non-current assets
1,023
4,682
Total non-current assets
11,547,424
12,262,750
Current assets
Non-current assets held for sale
5
1,242,539
–
Inventories
11
97,741
61,252
Trade and other receivables
12
1,259,065
1,444,934
Trade receivables
16,749
73,149
Other receivables
1,240,951
1,162,584
Current tax assets
22
1,365
209,201
Other current financial assets
18
33,618
39,243
At amortised cost
33,618
39,243
Current derivatives
19
20,194
1,251
Cash and cash equivalents
889,638
675,417
Total current assets
3,542,795
2,222,097
Total assets
15,090,219
14,484,847
The accompanying notes 1 to 34 and Appendix I are an integral part of these consolidated financial statements.
Consolidated financial statements. 2024
2
Redeia Corporación, S.A. and subsidiaries
Consolidated statement of financial position at 31 December 2024
Thousands of euros
Liabilities and equity
Note
31 Dec. 2024
31 Dec. 2023
Equity
Capital and reserves
5,307,863
5,453,324
Capital
270,540
270,540
Reserves
4,288,747
4,159,889
Own shares (-)
(11,780)
(19,496)
Profit for the year attributable to equity holders of the parent
368,438
689,640
Interim dividend (-)
(108,082)
(147,249)
Other equity instruments
500,000
500,000
Valuation adjustments
(153,906)
(44,564)
Financial assets at fair value through other comprehensive income
9,592
11,594
Hedging transactions
6,728
7,724
Translation differences
(170,226)
(63,882)
Equity attributable to equity holders of the parent
5,153,957
5,408,760
Equity attributable to non-controlling interests
106,111
120,297
Total equity
13
5,260,068
5,529,057
Non-current liabilities
Grants and other items
14
1,121,850
945,097
Non-current provisions
15
123,368
134,473
Non-current financial liabilities
18
5,143,185
5,244,976
Bank borrowings, notes and other marketable securities
5,131,362
5,166,765
Other non-current financial liabilities
11,823
78,211
Deferred tax liabilities
22
363,076
378,533
Non-current derivatives
19
10,824
14,958
Other non-current liabilities
16
58,062
134,849
Total non-current liabilities
6,820,365
6,852,886
Current liabilities
Liabilities associated with assets held for sale
5
478,532
—
Current provisions
15
3,172
30,606
Current financial liabilities
18
1,859,172
1,398,621
Bank borrowings, notes and other marketable securities
1,269,950
567,977
Other current financial liabilities
589,222
830,644
Trade and other payables
20
668,910
671,189
Trade payables
397,250
406,915
Other payables
260,473
251,797
Current tax liabilities
22
11,187
12,477
Current derivatives
19
—
2,488
Total current liabilities
3,009,786
2,102,904
Total equity and liabilities
15,090,219
14,484,847
The accompanying notes 1 to 34 and Appendix I are an integral part of these consolidated financial statements.
Consolidated financial statements. 2024
3
Redeia Corporación, S.A. and subsidiaries
Consolidated statement of profit or loss for the year ended 31 December 2024
Thousands of euros
Note
2024
2023 (*)
Revenue
23.a
1,594,204
1,818,791
Self-constructed assets
6 & 7
62,831
57,269
Share of profits of equity-accounted investees (with similar businesses to that of the
Group)
10
53,298
61,106
Cost of sales
23.c
(24,512)
(38,589)
Other operating income
23.b
106,111
65,023
Employee benefits expense
23.d
(180,557)
(178,002)
Other operating expenses
23.c
(401,259)
(403,784)
Depreciation and amortisation
6, 7 & 9
(461,691)
(438,744)
Release of grants related to non-financial assets and other grants
14
13,284
13,007
Impairment of and gains/(losses) on disposal of fixed assets
7
(349)
1,245
Operating profit
761,360
957,322
Finance income
23.e
59,988
49,049
Finance costs
23.e
(143,572)
(121,170)
Change in fair value of financial instruments
(165)
3,056
Exchange gains/(losses)
(1,978)
(3,050)
Net finance cost
(85,727)
(72,115)
Profit before tax
675,633
885,207
Income tax
22
(148,791)
(195,072)
Profit/(loss) for the year from continuing operations
526,842
690,135
Profit/(loss) after tax for the year from discontinued operations
5
(138,245)
29,538
Profit for the year
388,597
719,673
A) PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT
368,438
689,640
A.1) Profit for the year from continuing operations attributable to equity holders of the parent
5
498,760
662,777
A.2) Profit/(loss) for the year from discontinued operations attributable to equity holders of
the parent
5
(130,322)
26,863
B) Profit for the year attributable to non-controlling interests
13
20,159
30,033
B.1) Profit for the year from continuing operations attributable to non-controlling interests
5
28,082
27,358
B.2) Profit/(loss) for the year from discontinued operations attributable to non-controlling
interests
5
(7,923)
2,675
Earnings per share (euros)
Basic earnings per share (euros)
32
0.68
1.28
Diluted earnings per share (euros)
32
0.68
1.28
The accompanying notes 1 to 34 and Appendix I are an integral part of these consolidated financial statements.
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Consolidated financial statements. 2024
4
Redeia Corporación, S.A. and subsidiaries
Consolidated statement of changes in equity for the year ended 31 December 2024
Thousands of euros
Equity
Note
Share
capital
Reserves
Interim
dividend
Other equity
instruments
Own
shares
Profit for
the year
attributed
to equity
holders of
the parent
Valuation
adjustments
Equity
attributable
to equity
holders of
the parent
Equity
attributable
to non-
controlling
interests
Total
equity
Balance at 1 January 2023
270,540 4,064,486
(147,143)
–
(26,296)
664,731
(36,783)
4,789,535
104,741 4,894,276
1. Other comprehensive income
–
2,946
–
–
–
689,640
(7,781)
684,805
29,124
713,929
II. Transactions with shareholders or owners
–
(1,023)
(147,249)
500,000
6,800
(392,437)
–
(33,909)
(13,565)
(47,474)
- Dividend distribution
14
–
–
(147,249)
–
–
(392,437)
–
(539,686)
(29,735)
(569,421)
- Transactions with own shares
14
–
(1,023)
–
–
6,800
–
–
5,777
–
5,777
- Other transactions with shareholders and
owners
14
–
–
–
500,000
–
–
–
500,000
16,170
516,170
III. Other changes in equity
–
93,480
147,143
–
–
(272,294)
–
(31,671)
(3)
(31,674)
- Transfers between equity items
– 125,151
147,143
–
–
(272,294)
–
–
–
–
- Other changes
14
–
(31,671)
–
–
–
–
–
(31,671)
(3)
(31,674)
Balance at 31 December 2023
270,540 4,159,889
(147,249)
500,000
(19,496)
689,640
(44,564)
5,408,760
120,297 5,529,057
Balance at 1 January 2024
270,540 4,159,889
(147,249)
500,000
(19,496)
689,640
(44,564)
5,408,760
120,297 5,529,057
1. Other comprehensive income
–
(1,876)
–
–
–
368,438
(109,342)
257,220
20,249
277,469
II. Transactions with shareholders or owners
–
(441)
(108,082)
–
7,716
(392,718)
–
(493,525)
(34,435)
(527,960)
- Dividend distribution
14
–
–
(108,082)
–
–
(392,718)
–
(500,800)
(34,435)
(535,235)
- Transactions with own shares
14
–
(441)
–
–
7,716
–
–
7,275
–
7,275
- Other transactions with shareholders and
owners
14
–
–
–
–
–
–
–
–
–
–
III. Other changes in equity
– 131,175
147,249
–
–
(296,922)
–
(18,498)
–
(18,498)
- Transfers between equity items
– 149,673
147,249
–
–
(296,922)
–
–
–
–
- Other changes
14
–
(18,498)
–
–
–
–
–
(18,498)
(18,498)
Balance at 31 December 2024
270,540 4,288,747
(108,082)
500,000
(11,780)
368,438
(153,906)
5,153,957
106,111 5,260,068
The accompanying notes 1 to 34 and Appendix I are an integral part of these consolidated financial statements.
Consolidated financial statements. 2024
5
Redeia Corporación, S.A. and subsidiaries
Consolidated statement of comprehensive income for the year ended 31
D
b
2024
Thousands of euros
Note
2024
2023 (*)
A) Profit for the year (as per statement of profit or loss)
388,597
719,673
B) Other comprehensive income - Items that will not be reclassified to
profit or loss in subsequent periods:
(3,788)
(3,285)
Actuarial gains/(losses)
15
(2,381)
4,071
Equity instruments at fair value through other comprehensive income
18
(2,002)
(6,338)
Tax effect
595
(1,018)
C) Other comprehensive income - Items that may be reclassified to profit or loss
in subsequent periods:
(107,340)
(2,459)
Hedging transactions:
20
(10,825)
(13,837)
a) Valuation gains/(losses)
(20,596)
(14,691)
b) Amounts reclassified to profit or loss
9,771
854
Translation differences:
(106,344)
10,418
a) Valuation gains/(losses)
(106,344)
10,418
Share of other comprehensive income of joint ventures and associates
7,123
(2,499)
a) Valuation gains/(losses)
10
7,123
(2,499)
Tax effect
2,706
3,459
Total comprehensive income for the period (A + B + C)
277,469
713,929
a) Attributable to equity holders of the parent
257,220
684,805
Continuing operations
416,777
643,800
Discontinued operations
(159,557)
41,005
b) Attributable to non-controlling interests
20,249
29,124
Continuing operations
28,172
26,449
Discontinued operations
(7,923)
2,675
The accompanying notes 1 to 34 and Appendix I are an integral part of these consolidated financial statements.
(*) The consolidated statement of comprehensive income for 2023 has been restated to reflect the impact of the business classified
as a discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Consolidated financial statements. 2024
6
Redeia Corporación, S.A. and subsidiaries
Consolidated statement of cash flows for the year ended 31 December 2024
Thousands of euros
Note
2024
2023 (*)
Net cash flows from operating activities
955,629
382,734
Profit before tax
675,633
885,207
Adjustments to reconcile profit before tax to net cash flows:
459,660
431,795
Depreciation and amortisation
7, 8 & 10
461,691
438,744
Other adjustments (net)
(2,031)
(6,949)
Share of profit of equity-accounted investees
(53,298)
(61,106)
Gains/losses on disposal/impairment of non-financial assets and financial instruments
514
(864)
Accrual of finance income
24.e
(59,988)
(49,049)
Accrual of finance costs
24.e
143,572
121,170
Recognition/reversal of provisions
12, 14 & 16
9,266
17,810
Release of grants related to assets and other grants
15
(30,605)
(27,163)
Other income and expenses
17
(11,492)
(7,747)
Changes in working capital
(231,736)
(644,632)
Changes in inventories, receivables, current prepayments and other current assets
(127,486)
(76,632)
Changes in trade payables, current contract liabilities and other current liabilities
(104,250)
(568,000)
Other cash flows from/(used in) operating activities:
52,072
(289,636)
Interest paid
(124,041)
(138,028)
Dividends received
24.e
54,088
6,948
Interest received
54,133
45,949
Income tax received/(paid)
71,314
(199,987)
Other operating activity receipts/(payments)
(3,422)
(4,518
)
Provisions settled
(3,422)
(4,518)
Net cash flows used in investing activities
(947,376)
(29,353)
Payments for investments
(2,750,281)
(1,563,398)
PP&E, intangible assets and investment properties
6, 7 & 9
(1,078,626)
(877,563)
Group companies, associates and business units
11
(1,845)
(1,082)
Other financial assets
18
(1,669,810)
(684,753)
Proceeds from disposals
1,522,350
1,316,927
PP&E, intangible assets and investment properties
6, 7 & 9
–
2,400
Other financial assets
18
1,522,350
1,314,527
Other cash flows from investing activities
14
280,555
217,118
Other proceeds from investing activities
14
280,555
217,118
Net cash flows from/(used in) financing activities
324,460
(516,586)
Proceeds from and payments for equity instruments:
13
7,275
516,499
Issuance
–
510,720
Disposal
7,275
5,779
Proceeds from/(repayment) of financial liabilities
18
848,130
(459,264)
Issuance and disposal
1,237,588
170,374
Repayment
(389,458)
(629,638)
Dividends and payments on other equity instruments
13
(572,474)
(565,451)
Other cash flows from/(used in) financing activities
41,529
(8,370)
Other proceeds from/(payments for) financing activities
41,529
(8,370)
Net foreign exchange difference
1,397
2,846
Net increase/(decrease) in cash and cash equivalents - Continuing operations
334,110
(160,359)
Cash and cash equivalents at 1 January - Continuing operations
555,528
715,886
Cash and cash equivalents at 31 December - Continuing operations
889,638
555,528
Net (decrease)/increase in cash and cash equivalents - Discontinued operations
(17,217)
40,952
Cash and cash equivalents at 1 January - Discontinued operations
119,889
78,938
Cash and cash equivalents at 31 December - Discontinued operations
102,672
119,889
The accompanying notes 1 to 34 and Appendix I are an integral part of these consolidated financial statements.
(*) The consolidated statement of cash flows for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Consolidated financial statements. 2024
7
1
Activities of the Group companies ..........................................................................................................
8
2
Basis of presentation ................................................................................................................................
8
3
Sector regulations ..................................................................................................................................... 13
4
Material accounting policies..................................................................................................................... 18
5
Non-current assets and liabilities held for sale and discontinued operations .................................. 34
6
Intangible assets ........................................................................................................................................ 36
7
Property plant and equipment ................................................................................................................. 40
8
Right-of-use assets and lease liabilities ................................................................................................. 44
9
Investment properties ............................................................................................................................... 45
10
Investments accounted for using the equity method ........................................................................... 46
11
Inventories .................................................................................................................................................. 48
12
Trade and other receivables .................................................................................................................... 48
13
Equity .......................................................................................................................................................... 49
14
Grants and other non-current advances received ................................................................................ 53
15
Non-current and current provisions ........................................................................................................ 54
16
Other non-current liabilities ...................................................................................................................... 56
17
Financial risk management policy ........................................................................................................... 56
18
Financial assets and liabilities ................................................................................................................. 59
19
Derivative financial instruments .............................................................................................................. 64
20
Trade and other payables ........................................................................................................................ 67
21
Disclosures regarding average supplier payment term. Additional Provision Three -
"Disclosure requirements" under Law 15/2010 of 5 July 2010........................................................... 68
22
Tax matters ................................................................................................................................................. 69
23
Income and expenses .............................................................................................................................. 73
24
Transactions with equity-accounted investees and related parties ................................................... 75
25
Director remuneration ............................................................................................................................... 76
26
KMP remuneration .................................................................................................................................... 79
27
Segment information ................................................................................................................................. 80
28
Interests in joint arrangements ................................................................................................................ 82
29
Guarantees and other commitments extended to third parties and other contingent liabilities .... 83
30
Environmental disclosures ....................................................................................................................... 84
31
Other information ....................................................................................................................................... 84
32
Earnings per share .................................................................................................................................... 85
33
Share-based payments ............................................................................................................................ 85
34
Events after the reporting date ................................................................................................................ 85
35
Explanation added for translation to English ......................................................................................... 85
App. I Breakdown of equity investments at 31 December 2024 and 2023 .................................................. 86
In order to make it easier to understand the information provided in this document, certain alternative
performance measures have been included. The definition of those alternative performance measures can
be retrieved from:
Contents
Consolidated financial statements. 2024
8
https://www.redeia.com/en/shareholders-and-investors/financial-information/alternative-performance-
measures
1
Activities of the Group companies
Redeia Corporación, S.A. (formerly, Red Eléctrica Corporación, S.A.) changed its registered name in 2023.
It is the parent (hereinafter, the Parent or the Company) of a Group of subsidiaries. The Group also has
investments in joint operations together with other venturers. The Parent and its subsidiaries comprise
Redeia (hereinafter, the Group or Redeia). The Company's registered office is located at Paseo del Conde
de los Gaitanes, 177, Alcobendas (Madrid) and its shares are traded on the Spanish stock exchange as part
of the IBEX 35 index of blue chip stocks.
The Group’s business is articulated around three main segments:
•
Management and operation of national electricity infrastructure: this includes the transmission of
electricity, operation of the system and management of the Spanish electricity transmission grid. These
activities are carried out by Red Eléctrica de España S.A.U. (hereinafter, Red Eléctrica), which is Spain’s
transmission and system operator (TSO).
•
Management and operation of international electricity infrastructure: the Group carries out
electricity transmission activities outside of Spain through Red Eléctrica Internacional S.A.U. and its
investees (hereinafter, Redinter).
•
Telecommunications (satellites and fibre optic): The Group provides telecommunications services to
third parties through Redeia Infraestructuras de Telecomunicación, S.A., mainly via the lease of its dark
fibre backbone network and through the Hispasat subgroup (hereinafter, Hispasat), which operates
satellites. As disclosed in note 5, at year-end 2024, the Group classified its satellite communications
business, carried out by Hispasat, as a discontinued operation, so that the assets and liabilities
associated with that subgroup, which do not yet qualify for recognition as a completed sale, are
presented as non-current assets held for sale and the earnings of that subgroup are classified within
discontinued operations, as prescribed in IFRS 5 - Non-current assets held for sale and discontinued
operations.
In addition, the Group carries out activities designed to stimulate and accelerate technological innovation
through Elewit S.A.U.
Through its subsidiaries, the Group also carries out activities aimed at financing its businesses and hedging
its risks by reinsuring its assets and activities. Lastly, it develops and builds electricity infrastructure and
plant through its subsidiaries and investees, Red Eléctrica Infraestructuras en Canarias, S.A.U. and
Interconexión Eléctrica Francia-España, S.A.S. (Inelfe).
Appendix I itemises the business activities and registered offices of the Parent and its subsidiaries,
indicating the Parent’s direct and indirect shareholdings in its various investees.
2
Basis of presentation
a)
General information
The accompanying consolidated financial statements were authorised for issue by the directors of the
Parent and have been prepared to present fairly the equity and financial position of the Company and its
subsidiaries at 31 December 2024, as well as its financial performance, cash flows and the changes in its
equity, all of which on a consolidated basis, for the year then ended.
These consolidated financial statements, which were authorised for issue at a meeting of the Parent’s Board
of Directors on 25 February 2025, were prepared from the individual accounting records of the Company
and the rest of the Group companies, which together form Redeia (Appendix I). Each company prepares its
separate financial statements using the principles and criteria in effect in the country in which they operate;
accordingly, uniformity adjustments and reclassifications are made upon consolidation to align these
principles and criteria with the International Financial Reporting Standards adopted by the EU (IFRS-EU).
Consolidated financial statements. 2024
9
The accounting policies used by the consolidated companies are adjusted as necessary to ensure
uniformity with those applied by the Company.
The 2023 consolidated financial statements were approved at the Annual General Meeting held on 4 June
2024. The 2024 consolidated financial statements are pending ratification at the Annual General Meeting.
However, the Parent’s Board of Directors expects them to be approved without modification.
These consolidated financial statements were prepared using the historical cost convention, except with
respect to the accounting of financial assets at fair value through other comprehensive income and financial
assets at fair value through profit or loss. .
These consolidated financial statements are presented in thousands of euros, rounded to the nearest
thousand, which is the functional and presentation currency of the Parent, and were prepared in accordance
with IFRS-EU and other applicable financial reporting rules.
No mandatory accounting policy with a significant effect on the consolidated financial statements has been
omitted.
b)
New standards and amendments to IFRS-EU
The consolidated financial statements were prepared under IFRS-EU and consider the standards,
amendments and interpretations adopted by the European Union:
Effective since:
IFRS-EU amendments
1 January 2024
Amendments to IAS 1 Presentation of financial statements - Non-current liabilities with
covenants
Amendments to IAS 7 and IFRS 7 - Supplier finance arrangements
Amendments to IFRS 16 Leases - Lease liability in a sale and leaseback
•
Amendments to IAS 1: Clarifications regarding how entities classify liabilities as current or non-current;
in particular, how an entity makes that distinction when settlement is subject to compliance with
covenants.
•
Amendments to IAS 7 and IFRS 7: These amendments introduce specific disclosure requirements for
supplier finance arrangements and their effects on an entity’s liabilities, cash flows and exposure to
liquidity risk. The new disclosures required under these amendments are provided in note 20.
•
Amendments to IAS 16: These amendments clarify the subsequent measurement of lease liabilities
arising from sale and leaseback transactions.
The above-listed amendments have not had a material impact on the preparation of the accompanying
consolidated financial statements.
The Group is also assessing the impact of the improvements issued and approved for application in the
European Union from 1 January 2025:
Effective since:
Amendments
1 January 2025
Amendments to IAS 21 - Lack of exchangeability
These amendments are not expected to have a significant effect on the annual consolidated financial
statements in which their application is mandatory.
c)
Use of estimates and assumptions
Preparation of the consolidated financial statements in accordance with IFRS-EU requires the Group’s
management to use judgement and make estimates and assumptions that affect application of its
accounting policies and the recognised amounts of assets, liabilities, income and expenses. The estimates
and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the current circumstances.
Actual results may differ from these estimates.
The 2024 consolidated financial statements make occasional use of estimates made by the Group and
consolidated companies’ management, which are later ratified by their directors, in order to quantify certain
of the assets, liabilities, income, expenses and obligations recognised therein.
Consolidated financial statements. 2024
10
Essentially, those estimates refer to:
•
Estimation of the recoverability of assets by calculating their recoverable amount. Recoverable amount
is the higher of fair value less costs to sell and value in use. Asset impairment is generally calculated by
discounting cash flows based on the financial projections used by the Group. The discount rate used is
the weighted average cost of capital (notes 6, 7 and 10).
•
Estimation of the useful lives of property plant and equipment, intangible assets and investment
properties (notes 4.c, 4.d and 4.e).
•
The assumptions used in actuarial calculations (note 15).
•
The assumptions used to calculate the fair value of derivatives (note 19).
•
The calculation of revenue from TSO activities in Spain (note 3).
•
The assumptions used to calculate the fair value of non-current assets held for sale and the associated
non-current liabilities (note 5).
As a general rule, liabilities are recognised when it is considered probable that an obligation will result in an
outflow of resources. The Group assesses and estimates the amounts payable in the future, including those
corresponding to income tax, contractual obligations, the settlement of outstanding lawsuits or other
obligations. These estimates require interpreting current events and circumstances, projecting future
developments and estimating what financial impacts those events will have (note 15). The Group has
insurance coverage against third-party claims that could arise in the ordinary course of its business
activities.
In the event that IFRS-EU does not specify the accounting treatment for a specific transaction,
management, in accordance with IAS 8, relies on its best judgement, based on the economic substance of
the transaction and the most recent pronouncements of other standard-setting bodies that use a similar
conceptual framework to develop accounting standards. Specifically, as tax credits given for investments are
outside the scope of IAS 12 and IAS 20, the Group’s management, having analysed all existing facts and
circumstances, has determined that the tax credits for investments in fixed assets in the Canary Islands
awarded to the Group by the public authorities are equivalent to a grant related to assets, and so accounts
for them applying IAS 20 Government grants (note 4.k).
For a better understanding of the consolidated financial statements, the various estimates and assumptions
made are outlined in each note.
Although the estimates were made on the basis of the best information available at 31 December 2024
regarding the facts analysed, future events could make it necessary to revise them (upwards or downwards)
in coming years. Changes in accounting estimates would be applied prospectively in accordance with IFRS-
EU, recognising the effects of any change in estimates in the related consolidated statement of profit or loss.
d)
Basis of consolidation
The types of investees consolidated by the Group and the consolidation methods used for each are detailed
next:
•
Subsidiaries
Subsidiaries are investees over which the Company exercises control either directly or indirectly via
other subsidiaries. The Company controls a subsidiary when it is exposed, or has rights, to variable
returns from its involvement with it and has the ability to affect those returns through its power over the
investee. The Company is deemed to have power over an investee when it has existing rights that give it
the current ability to direct its relevant activities. The Company is exposed, or has rights, to variable
returns from its involvement with the investee when the returns obtained from its involvement have the
potential to vary as a result of the entity’s performance.
Consolidated financial statements. 2024
11
Subsidiaries' income, expenses and operating cash flows are consolidated from the acquisition date,
i.e., the date on which the Group obtains effective control over them. Subsidiaries are deconsolidated
from the date on which such control is relinquished.
Intragroup balances and transactions have been eliminated in full upon consolidation, as have
unrealised profits and losses from intragroup transactions. However, unrealised losses are deemed an
indication of the potential impairment of the assets sold.
•
Joint arrangements
Joint arrangements are those in which control over an economic activity is contractually shared, which
means that the key decisions relating to the activity require the unanimous consent of the Group and the
other venturers. The existence of control is assessed using the definition of control used to classify a
subsidiary.
For each joint arrangement the Group assesses all of the facts and circumstances in order to classify it
as a joint venture or a joint operation, specifically considering whether the joint arrangement gives the
venturers rights to assets and obligations for the liabilities relating to the arrangement.
A joint operation is a joint arrangement whereby the parties that have joint control have rights to the
assets, and obligations for the liabilities, relating to the arrangement. For these investments, the Group's
consolidated financial statements recognise its assets, including its share of the assets held jointly; its
liabilities, including its share of any liabilities incurred jointly with the other venturers; its revenue from
the sale of its share of the output arising from the joint operation; and its expenses, including its share of
any expenses incurred jointly.
Joint ventures are joint arrangements in which control over an economic activity is contractually shared
and the strategic financial and operating decisions relating to the activity require the unanimous consent
of the parties sharing control. The Group’s interests in joint ventures are accounting for using the equity
method prescribed in IFRS 11.
When the Group acquires an interest in a joint operation whose activity constitutes a business, it applies
the relevant principles on business combinations accounting, recognising the Group’s share of the
operation’s individual asset and liabilities. However, in subsequent acquisitions of additional interests in
a joint operation, its previously held interest in the individual assets and liabilities is not remeasured.
In a sale or contribution of assets by the Group to a joint operation, the Group recognises the resulting
gains and losses only to the extent of the other parties’ interests in the joint operation, unless the
transactions provide evidence of a reduction in net realisable value of the assets to be sold or
contributed or of an impairment loss of those assets, in which case the losses are recognised in full by
the Group.
In a purchase of assets by the Group from a joint operation, the Group only recognises its share of the
resulting gains or losses when it resells those assets to a third party, unless the losses provide evidence
of a reduction in the net realisable value of the assets to be purchased or of an impairment loss of those
assets, in which case the Group recognises the losses in full.
•
Associates
Associates are investees over which the Company exercises significant influence, either directly or
indirectly through subsidiaries. Significant influence is the power to participate in the financial and
operating policy decisions of an investee but is not control or joint control over those policies. In
assessing whether it has significant influence, the Group considers the existence and effect of potential
voting rights that are currently exercisable or convertible, including potential voting rights held by another
entity.
Investments in associates are accounted for using the equity method from the date on which significant
influence is obtained until the date on which the Company can no longer justify its continuing existence.
If, however, on the acquisition date, some or all of the investment qualifies for classification as a non-
current asset or disposal group held for sale, it is recognised at fair value less costs of disposal.
Consolidated financial statements. 2024
12
Investments in associates are initially recognised at acquisition cost, including any directly attributable
acquisition costs and any contingent consideration that depends on future events or delivery of certain
conditions. If the cost of the acquisition is higher than the Group’s share of the acquisition-date fair value
of the identifiable net assets of the associate, the difference is recognised as goodwill within investments
accounted for using the equity method in the consolidated statement of financial position. If the cost of
the acquisition is less than the Group’s share of the acquisition-date fair value of the identifiable net
assets of the associate (i.e., a bargain acquisition), the gain is recognised in profit and loss in the period
in which the associate is acquired.
The Group classifies its share of these investees’ profits within operating profit when their activity is
similar to the Group’s operating activities. If not, its share of their earnings is classified outside of
operating profit.
Appendix I itemises the Company’s investments in subsidiaries, joint arrangements and associates, the
method used to account for them in these consolidated financial statements and other relevant information.
The separate financial statements of the subsidiaries, joint ventures, joint operations and associates used in
the consolidation process relate to the same date and period as those of the Parent.
The following basic consolidation principles were used to account for the Parent’s and its subsidiaries’
transactions:
•
Uniformity adjustments were made to the accounting principles and criteria used by the Group
companies to align them with those used by the Parent.
•
Translation of the financial statements of foreign operations:
◦
The financial statements of foreign operations were translated to euros using the closing exchange
rate for their assets and liabilities, the average exchange rate for items of income and expense and
the historical exchange rate for equity items.
◦
All resulting exchange differences were recognised as translation differences in other
comprehensive income.
◦
The same criteria are used to translate the financial statements of the companies accounted for
using the equity method, with the Group’s share of any translation differences recognised in other
comprehensive income.
•
All transactions between fully-consolidated companies and the resulting year-end balances were
eliminated on consolidation.
•
Profits or losses resulting from intragroup transactions that are recognised in assets were eliminated in
full.
e)
Non-controlling interests
For each business combination, the Group measures, at the acquisition date, components of non-controlling
interests in the acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation at either: (a) fair value; or (b) the present ownership
instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. Non-
controlling interests are presented as a separate line item in equity under equity attributable to non-
controlling interests. Non-controlling interests’ share of the Group’s profit for the year is presented in the
consolidated statement of profit or loss as a separate line item under profit for the year attributable to non-
controlling interests.
Transactions with non-controlling interests are recognised as transactions with owners of the Group.
Accordingly, in acquisitions of non-controlling interests, the difference between the consideration paid and
the corresponding share of the carrying amount of the subsidiary’s net assets is recognised in equity.
Likewise, any gains or losses on the sale of non-controlling interests are recognised in the Group's equity.
Consolidated financial statements. 2024
13
f)
Comparative information
For comparative purposes, the information contained in these annual consolidated financial statements is
presented not only for the current year but also for the previous year.
As outlined in note 5, the consolidated statement of profit or loss, the consolidate statement of
comprehensive income and the consolidated statement of cash flows for 2023 provided in the annual
consolidated financial statements for comparative purposes have been restated for uniformity purposes,
specifically to reflect the classification of the satellite telecommunications business as a discontinued
operation.
g)
Changes in the scope of consolidation
The changes in the scope of consolidation in 2024:
•
In September 2024, Elewit, S.A.U. acquired 94.94% of SAFEDELIMIT, S.A.U., a company set up to
carry out the project selected under the umbrella of Redeia’s First Intrapreneurship Programme. This
investee is fully consolidated.
•
In June 2024, Elewit, S.A.U. acquired a 17.04% interest in Unusuals World, S.L., adding this investee to
its consolidation scope due to the existence of significant influence. This investee is consolidated using
the equity method.
•
In May 2024, the loss of significant influence over Nearby Computing, S.L. triggered the derecognition of
that investment, which is now accounted for in the accompanying consolidated statement of financial
position as a financial asset at fair value through profit and loss (note 10).
•
Axess Networks Solutions Arabia Saudita, S.L. (an equity investment held through Axess Networks
Solutions, S.L.U.) was liquidated in March 2024.
•
Axess Networks Solutions, S.L.U. was merged into Hispasat, S.A. in June 2024.
The changes in the scope of consolidation in 2023:
•
Liquidation of the Axess subgroup companies:
◦
Axesat Mobility S.A. de C.V. (held through Axess Networks Solutions México S.A. de C.V.) in August
2023.
◦
Ingux S.A. (held through Axess Networks Solutions Colombia S.A.S.) in September 2023.
◦
Axess Saudi Arabian Telecommunications Company (investee accounted for using the equity
method through Axess Networks Solutions Arabia Saudita S.L.) in December 2023.
•
In November 2023, a new company, Compañía Operadora de Infraestructuras Eléctricas, S.A.
(COIESA), 50%-owned by each of Red Eléctrica Chile, SpA and Engie Energía Chile SA., was
incorporated to jointly operate a control centre in Chile. This investee is consolidated using the equity
method.
3
Sector regulations
a)
The electricity sector in Spain
The Spanish electricity sector’s general regulatory framework is that established in Law 24/2013 of 26
December, hereinafter the Electricity Sector Act or the Act. Specifically, it sets out the following regulatory
framework for the activities carried out by Red Eléctrica:
•
For transmission, the Act recognises Red Eléctrica as the sole transmission agent, an activity it carries
out on an exclusive basis.
The Spanish government sets the remuneration for this activity based on the general principles defined
in the Act and the methodology essentially implemented in Spain's National Markets and Competition
Consolidated financial statements. 2024
14
Commission (CNMC for its acronym in Spanish) Circular 5/2019 of 5 December 2019, which establishes
the methodology for calculating the remuneration applicable to electricity transmission.
Other remuneration parameters for the new model were established for the current regulatory period
(2020-2025) in the following regulations: (i) Circular 2/2019, which establishes the methodology for
calculating the financial rate of return for electricity transmission and distribution, regasification and
natural gas transmission and distribution; and (ii) Circular 7/2019, which approves the standard facilities
and reference unit values for operation and maintenance per asset used to calculate the remuneration
assigned to owners of electricity transmission facilities. Regarding the investment reference unit values
that were in force in the previous regulatory period, established by Ministry of Industry, Energy and
Tourism Order IET/2659/2015, the Circular extended them for the 2020-2025 period.
Order IET/981/2016 established the definitive regulated revenue for transmission for the first year of
application of Royal Decree 1047/2013; i.e. 2016. Subsequently, regulated revenue was established
provisionally from 2017 to 2024, extending the amount of remuneration established for 2016 and
establishing settlements on account.
The reason for using provisional amounts was because of the “detriment proceedings” brought by the
Spanish General State Administration against Order IET/981/2016 requesting that Spain's Supreme
Court declare certain of its articles null and void so that definitive revenue for 2016 could be corrected.
The Supreme Court's ruling was published on 29 June 2020, requiring Order IET/981/2016 and revenue
for 2016 to be corrected.
To enforce this ruling, the Ministry published Order TED/1311/2022, establishing Red Eléctrica’s
definitive remuneration for 2016. After establishing the definitive remuneration for 2016, the Ministry
approved Order TED/1343/2022 of 23 December 2022 establishing the remuneration for 2017, 2018
and 2019 for electricity transmission facility owners.
The CNMC then approved resolutions establishing the remuneration of electricity transmission facility
owners for 2020 and 2021 after this authority was attributed to it via Royal Decree-Law 1/2019.
Therefore, the CNMC had yet to publish the definitive remuneration for 2022, 2023 and 2024 at the end
of the reporting period.
•
As the operator of the Spanish electricity system, the Company's main duty is to ensure the continuity
and security of electricity supply and guarantee the correct coordination of the production and
transmission system. It exercise its duties in conjunction with the operators and agents of the Iberian
Electricity Market (MIBEL), framed by the principles of transparency, objectivity and independence.
Law 24/2013 also attributes the function of transmission grid manager to the system operator. The
process for designating Red Eléctrica as the Spanish electricity system's transmission grid manager, as
provided for in the Act, was completed in 2015. Pursuant to this designation, Red Eléctrica operates
under the framework of ownership unbundling provided for in article 43 of Directive (EU) 2019/944 on
common rules for the internal market for electricity.
Red Eléctrica has also been assigned the functions of settlement, notification of payments and receipts
and management of guarantees relating to security of supply and of effective imbalances between
generation and consumption units, as well as short-term energy exchanges aimed at maintaining quality
and security of supply.
It also oversees the technical and economic dispatch for electricity supply from non-mainland electricity
systems (i.e., the Balearic Islands, the Canary Islands, Ceuta and Melilla) and the settlement of
payments and receipts arising from the economic dispatch of electricity generated by these systems.
Following publication of Royal Decree-Law 1/2019, the CNMC established the first methodology for
remunerating system operation via Circular 4/2019. The core principal underlying this remuneration
model is to provide a suitable return for a low-risk activity, considering those costs prudently incurred by
an efficient and well-managed company. The CNMC has applied the remuneration methodology
Consolidated financial statements. 2024
15
provided for in Circular 4/2019 to establish the remuneration of the system operator since 2020. Based
on the experience gained, the methodology was updated via the publication of CNMC Circular 1/2023 of
7 February 2023.
Nonetheless, it is the Ministry for the Ecological Transition and Demographic Challenge (hereinafter, the
Ministry) that holds the authority to approve the methodology for calculating the system operator’s
remuneration for 2014-2019. In the absence of such methodology, the annual remuneration provided for
in successive ministerial orders approving the electricity access tolls for the 2014-2019 period was
provisional. The aim was to adjust the amounts set out in these orders once the Ministry had approved
the methodology. In 2021, the Ministry submitted for public consultation the draft Royal Decree outlining
the methodology for calculating the remuneration of the system operator applicable to each year of the
specified period.
As for the functions assigned to Red Eléctrica in respect of the non-mainland electricity systems, Law
17/2013 stipulates that ownership of pumped-storage hydropower facilities in those systems, to the
extent their main purpose is to guarantee supply and system security and the integration of non-
manageable renewable energies, should be attributed to the system operator. This regulatory framework
was validated by the European Commission in Commission Decision (EU) 2024/560.
Consequently, in 2015, the 200-MW pumped-storage hydropower facility in Salto de Chira in Gran
Canary Island was transferred to the system operator, as required by Order IET/728/2014 of 28 April
2014. After taking ownership, in 2016, Red Eléctrica submitted a project to amend the original project
that included technical and environmental enhancements aimed at increasing the capacity for integrating
renewable energy and reducing the environmental impact of this new infrastructure.
On 17 December 2022, Order TED/1243/2022 of 2 December 2022 was published, approving the
methodology for calculating the remuneration for the 200-MW pumped-storage hydropower facility in
Salto de Chira in Gran Canary Island owned by the system operator. Under this methodology, the
facility's total cost is calculated considering certain remuneration parameters: the facility's investment
value the year it is commissioned; the unit value of variable operation and maintenance costs; and the
unit value of the annual payment for fixed operation and maintenance costs.
Against the backdrop of that general regulatory framework, the regulatory developments of greatest
relevance for Red Eléctrica’s transmission activities in 2024 were:
•
The Secretary of State for Energy Resolution of 22 April 2024, amending certain specific aspects of the
so-called Plan for the Development of the Electricity Transmission Network, 2021-2026. The
amendments imply additional investments of 489 million euros with respect to the original plans dated to
2022. As a result, the total amount of investments contemplated under that plan increased from the
originally approved 6.96 billion euros to 7.45 billion euros.
•
Work has already begun on the new plan, which will cover 2025-2030, with publication of Ministerial
Order TED/1375/2023 of 21 December 2023, initiating the procedure for making proposals for the
development of the electricity transmission network through to 2030.
•
CNMC Resolution of 4 April 2024, establishing the remuneration assigned to owners of electricity
transmission facilities for 2021. In the case of Red Eléctrica, that remuneration amounts to 1.46 billion
euros.
•
CNMC Resolution of 27 June 2024, establishing the adjustment to me made to the remuneration of
electricity transmission and distribution companies for 2020 to 2024 for the use of fibre optics in
performing different activities.
•
Ministerial Order TED/1193/2024, establishing energy policy guidelines for the CNMC in relation to the
methodology for calculating the financial rate of return applicable to electricity transmission and
distribution, regasification, and natural gas transportation and distribution.
Consolidated financial statements. 2024
16
•
As for regulations currently in process, note that the consultation process concerning the circular
establishing the financial rate of return is expected to start soon with the circular itself slated for approval
by the last quarter of 2025.
As for the regulatory developments affecting system operation:
•
Royal Decree-Law 4/2024 of 26 June 2024 extends certain measures implemented to address the
economic and social consequences of the conflicts in Ukraine and the Middle East. This Royal Decree-
Law amends the Electricity Sector Act (Law 24/2013) in order to assign a new function to the system
operator regarding the collection and handling of dynamic information from electric charging stations.
•
CNMV Circular 1/2024 of 27 September 2024, establishing the methodology and terms of access and
connection to the electricity transmission and distribution’ demand-side facilities.
Additional pieces of regulation of relevance for the sector implemented in 2024 include the updated 2023-
2030 Integrated National Energy and Climate Plan (NECP), making the plan targets more ambitious, and
Royal Decree 962/2024 of 24 September 2024, regulating the production of electricity from renewable
sources at offshore facilities.
b)
International electricity sector regulations
Redinter has built and acquired electricity transmission facilities which it currently operates and maintains in
the Peruvian, Chilean and Brazilian electricity systems.
The electricity sector in Peru
In Peru, electricity sector liberalisation began in 1992 with publication of the Electricity Concessions Law
(LCE). The shaping of the electricity sector was subsequently completed by the 2006 reforms (Law 28832,
Law for the Efficient Development of Electricity Generation, LGE)
These two laws and certain amendments and/or extensions, together with the Regulation implementing the
LCE (Supreme Decree No. 009-93-EM enacted in 1993), make up the basic regulatory framework
governing the electricity sector in Peru.
The basic regulatory framework for the transmission activity also includes the Transmission Regulation
(Supreme Decree No. 027-2007-EM). Other key regulatory developments instituted by the regulatory
agency OSINERGMIN include the Resolutions approving the annual settlement procedure for electricity
transmission service revenue (Resolutions No. 055-2020-OS/CD and No. 056-2020-OS/CD), as well as
Resolution No. 217-2013-OS/CD, regulating Tariffs and Remuneration for Secondary Transmission Systems
(STS) and Complementary Transmission Systems (CTS).
In transmission, the 2006 reforms (LGE) entailed the introduction of auctions as a mechanism for awarding
contracts to construct new facilities in the backbone transmission network. The auction procedure required
the development of an energy planning process, which did not exist prior to the publication of the LGE.
The Peruvian regulatory framework is currently open to discussion. On 20 June 2019 Supreme Resolution
No. 006-2019-EM was published, creating the CRSE (multi-sector power reform commission) for the
purpose of reviewing and adjusting the existing legal and regulatory framework in order to optimise the
efficient development of the Peruvian electricity market while adhering to international standards and best
practices, ultimately seeking to guarantee the sustainability of the electricity subsector. Publication of
Supreme Resolution No. 011-2024-EM extended the CRSE for an additional 20 months, from 14 July 2024,
thanks to which the goal is to have a white book containing legislative and institutional proposals and
regulatory reforms addressing the challenges facing the electricity system some time in 2026.
Consolidated financial statements. 2024
17
The electricity sector in Chile
The legal framework governing the electricity transmission business in Chile is contained in Decree with
Force of Law (DFL) No. 4/2006, which sets out the revised, coordinated and systematised text of Ministry of
Mining DFL No. 1 of 1982, the General Electricity Services Law (DFL No. 1/1982) and subsequent
amendments thereto. The amendments include Law 19,940 (Short Law I) enacted on 13 March 2004, Law
20,018 (Short Law II) enacted on 19 May 2005, and Law 20,257 (Generation through Non-conventional
Renewable Energy Sources) enacted on 1 April 2008. These regulations are supplemented by the
Regulation of the General Electricity Services Law of 1997 (Ministry of Mining Supreme Decree No. 327 of
1997) and respective amendments thereto, and by the Technical Standard for Safety and Quality of Service
(Exempt Ministerial Resolution No. 40 of 16 May 2005) and subsequent amendments thereto.
The new Transmission Law was enacted on 11 July 2016. This law provides for a new independent
coordinating body for the National Electricity System, known as the National Electricity Coordinator (CEN). It
also defines a new electricity transmission system wherein the facilities forming part of the Backbone, Sub-
transmission and Additional Transmission Systems were amalgamated into the National, Zonal and
Dedicated Transmission Systems, respectively.
Ministry of Energy Supreme Decree No. 37, approving the regulation for transmission systems and
transmission planning, was published in the official state journal on 25 May 2021. This Decree lays down the
regulations for open access to transmission facilities; in particular, the possibility of interested third parties
(especially generation companies) accessing fibre optic data transmission.
On 16 February 2023, the Ministry of Energy approved Decree 7T, the Tariff Decree, regulating the
remuneration of transmission facilities for 2020-2023. That Tariff Decree puts an end to the remuneration-
setting process for the national transmission facilities subject to four-year assessments. On 26 April 2022,
via Resolution No. 288, the National Energy Commission (CNE) approved the Definitive Technical and
Administrative Rules of the Remuneration Appraisal for 2024-2027, establishing the scope of rules
applicable to the external consultant to be selected by the CNE to draw up the remuneration analysis for the
2024-2027 four-year period.
The electricity sector in Brazil
The transmission model in Brazil is based on government concessions, for which the core principles of
public service are enshrined in the Constitution of 1988, and the principles that govern concessions, in Law
8,987 and Law 9,074 of 1995, respectively. This framework provides that concession arrangements are
administrative contracts entered into with the federal government (national), represented by the regulatory
agency ANEEL, which cannot be amended or early terminated by the government, except for duly
supported reasons deemed to be in the public interest.
Under this model, the concession for backbone network facilities is put out for tender by ANEEL through
auctions. The auctions determine which transmission companies will build, maintain and operate the
electricity assets during the concession period. By way of remuneration for the service rendered during this
period, transmission companies receive the annual permitted remuneration specified in the auction (RAP for
its acronym in Portuguese).
In terms of sector regulations, there are no laws that govern the transmission activity in general; rather,
specific aspects are regulated (e.g. extension of concession terms under Law 12,783 of 2013) individually.
There are also ministerial and government orders, and specific rules are included in the concession
arrangements themselves.
For example, in December 2022, Decree 11,314/2022, regulated bidding for and extension of transmission
concessions, establishing a new bidding process for expiring transmission concession agreements.
Consolidated financial statements. 2024
18
c)
Telecommunications
Telecommunications in Spain
The telecommunications sector in Spain was regulated by the General Telecommunications Act (Law 9/2014
of 9 May 2014), the main objective of which is to encourage competition in the market and guarantee
access to networks, and by Royal Decree 330/2016 of 9 September 2016, on measures to reduce the cost
of deploying high-speed electronic communications networks.
The General Telecommunications Act was implemented by Royal Decree 123/2017 of 24 February 2017,
approving the Regulation on the use of public radio domain, which also regulates the grant of rights of use
over orbit and spectrum resources and permits for the ground satellite segment and the associated
spectrum. As required under that legislation, Reintel and Hispasat are on file in the CNMC’s Register of
Electronic Communications Operators. Hispasat, specifically, has been awarded the permits for the ground
segment and the concessions to use the related radio spectrum, as well as concessions to operate various
orbit and spectrum resources.
Law 9/2014 has since been replaced by a new General Communications Act (Law 11/2022 of 28 June
2022), which transposes Directive (EU) 2018/1972 establishing the European Electronic Communications
Code into Spanish law. Importantly, it promotes investment in very high capacity networks, introducing
geographical surveys, co-investment agreements and shared use of public spectrum and private property,
encouraging shared use of associated infrastructures and other facilities and end-user network access.
Telecommunications in Europe
At the EU level, a noteworthy regulatory development in 2024 was the publication of Regulation 2024/1309
on measures to reduce the cost of deploying gigabit electronic communications networks (the “Gigabit
Infrastructure Act”), which took effect in April 2024. It repeals Directive 2014/64/EU. The new measures
include increasing the use of available infrastructure by allowing third-party access thereto by means of
negotiated access prices.
4
Material accounting policies
The material accounting policies used to prepare these consolidated financial statements, applied
consistently to the reporting periods presented, are as follows:
a)
Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred to
the Group. The acquisition date is that on which the Group obtains control of the acquired business. The
consideration transferred in a business combination is the sum of the acquisition-date fair values of the
assets transferred, the liabilities incurred or assumed and the equity instruments issued and any contingent
consideration, i.e., consideration subject to the occurrence of future events or fulfilment of specific
conditions, in exchange for control of the acquired business. The consideration transferred excludes any
amounts that do not form part of the exchange for the acquiree. Acquisition-related costs are recognised as
incurred.
For each business combination, the Group measures, at the acquisition date, components of non-controlling
interests in the acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation at either: (a) fair value; or (b) the present ownership
instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets.
Consolidated financial statements. 2024
19
As of the acquisition date, the Group recognises the identifiable assets acquired, the liabilities assumed and
any non-controlling interest in the acquiree. This accounting only applies in the case of non-controlling
interests that are present ownership interests and entitle their holder to a proportionate share of the net
assets of the acquiree in the event of liquidation. If not, non-controlling interests are measured at their fair
value or a value based on market prices. The liabilities assumed include contingent liabilities to the extent
that they represent present obligations that arise as a result of past events and their fair value can be
reliably measured. The Group also recognises any indemnification assets granted by the seller at the same
time as it recognises the indemnified item, measured on the same basis as the indemnified item, factoring in
an assessment of collectability of the indemnification asset and any contractual limitations on the
indemnified amount.
The positive difference between the consideration delivered, plus the amount of any non-controlling interest
in the acquiree, and the net identifiable assets acquired is recognised as goodwill. If, after analysing the
amount of the consideration transferred and the amount of any non-controlling interest and identifying and
measuring the net assets acquired, that difference is negative, the resulting gain is recognised in a separate
line item in the consolidated statement of profit or loss.
If the initial accounting for a business combination is incomplete by the end of the reporting period, the
identified net assets are initially recognised at provisional amounts; any adjustments to those amounts are
recognised during the measurement period as if the information about the facts and circumstances
underlying the adjustments had been known on the acquisition date, restating the prior-year comparative
figures as required. Provisional amounts are only adjusted for new information obtained about facts and
circumstances that existed as of the acquisition date and, if known, would have affected the measurement of
the amounts recognised as of that date.
After the one-year measurement period ends, the Group only revises the initial accounting to correct an
error.
b)
Service concession arrangements
The Group operates a number of assets under concessions granted by different public bodies. The Group
analyses the terms of these arrangements to determine whether they fall within the scope of IFRIC 12
Service concession arrangements. IFRIC 12 applies to public-to-private service concession arrangements
that meet two conditions:
– The grantor controls or regulates what services the operator must provide with the infrastructure, to
whom it must provide them, and at what price; and
– The grantor controls any significant residual interest in the infrastructure at the end of the term of the
arrangement.
Based on the nature of the consideration to be received, by reference to the contract terms, a service
concession arrangement is recognised either as a financial asset or as an intangible asset. Specifically, the
Group recognises:
•
A financial asset: when it has an unconditional right to receive cash or another financial asset from, or at
the direction of the grantor, and the grantor has little, if any, discretion to avoid payment.
The financial model entails identifying the separate performance obligations in the arrangement and
recognising revenue and expenses based on progress towards completion of the performance
obligations in accordance with the revenue and expense recognition policies explained in section g) of
this note, giving rise to a financial asset for the consideration receivable. The carrying amount of the
financial asset is adjusted annually in accordance with the implicit interest rate of the concession.
Redeia, through Red Eléctrica, holds a concession over the pumped storage hydropower facility in Salto
de Chira in Gran Canary Island which is accounted for using the financial model, as outlined in note 18.
The financial asset is presented within financial assets at amortised cost under non-current financial
assets in the consolidated statement of financial position.
•
An intangible asset: to the extent that it receives a right to charge for access to or use of the public
service that is not an unconditional right to receive cash or another financial asset.
Consolidated financial statements. 2024
20
The intangible asset model implies initially recognising the fair value of the consideration due in
exchange for providing the construction or upgrade services under a service concession arrangement as
an intangible asset. After initial recognition, the intangible asset is recognised at cost, including
capitalised borrowing costs, less accumulated amortisation and any accumulated impairment losses.
These concession arrangements are carried in assets at their acquisition cost less accumulated
amortisation and any accumulated impairment losses recognised and are amortised on a straight-line
basis over the term of the concession. As detailed in note 6, Redeia accounts for its electricity
transmission concessions in Peru using the intangible asset model. The related intangible assets are
recognised under service concession arrangements and industrial property within intangible assets in
the consolidated statement of financial position.
The contractual obligations assumed by the Group to maintain the infrastructure during the period of
operation or restore it before it is handed over to the grantor at the end of the service arrangement, to the
extent that they these activities do not generate revenue, are recognised in accordance with the policy for
accounting for provisions.
c)
Intangible assets
Intangible assets are measured at acquisition cost, which is reviewed periodically and adjusted for any
impairment. Annual amortisation charges are accounted for as an expense, measured on a straight-line
basis over the estimated useful life assigned to each item or class of intangible assets.
The Group’s intangible assets include:
•
Licences and industrial property
Licences have finite useful lives and are carried at the cost of obtaining them less accumulated amortisation
and any accumulated impairment losses. Amortisation is calculated using the straight-line method to
allocate the cost of licenses over their estimated useful life of five years.
Industrial property is measured initially at acquisition or production cost and is subsequently carried net of
accumulated amortisation and any impairment losses. These assets are amortised over an estimated useful
life of five years.
•
Trademarks
Trademarks are carried at the cost incurred to acquire them less accumulated amortisation and any
accumulated impairment losses. Trademarks are amortised on a straight-line basis over a period of 10
years.
•
Development costs
Development costs directly attributable to the design and testing of new or improved computer software that
is identifiable, unique and likely to be controlled by the Group are recognised as intangible assets when it is
probable that the project will be successful, based on its technical feasibility and commercial viability, and
the cost of the asset can be estimated reliably. Expenditure that does not meet this criteria is recognised as
an expense when it is incurred. Development costs are capitalised and amortised when the asset is
available for use on a straight-line basis over a period no longer than five years. Costs associated with
maintaining software programmes are recognised as an expense as incurred.
•
Software
This heading includes software usage licenses acquired. They are capitalised at the cost incurred to acquire
them and get them ready for use. Software is amortised on a straight-line basis over a period of between
three and five years from when it is put into use.
Costs associated with maintaining computer software programmes are recognised as an expense as
incurred.
Consolidated financial statements. 2024
21
•
Goodwill
Goodwill is calculated using the criteria outlined in the section on business combinations. Goodwill is not
amortised but is tested for impairment annually, or more often if there are indications of impairment. After
initial recognition, goodwill is measured at cost less any accumulated impairment losses. Internally
generated goodwill is not recognised as an asset.
•
Other intangible assets
This heading mainly includes (i) the perpetual right to receive regulated tariffs arising from a business
combination; and (ii) the allocation of the business combination purchase price to a customer portfolio.
These assets are originally recognised at fair value.
The right to regulated tariffs has an indefinite useful life and is tested for impairment annually (note 4.i).
The customer portfolio is being amortised on a straight-line basis over 10 years, which is how long the
portfolio is expected to remain intact.
•
Intangible assets under development
During the construction period, service concession arrangements are measured at the amounts effectively
paid until completion of the construction work in accordance with IFRIC 12.
d)
Property, plant and equipment
The main assets under this heading are electricity and telecommunications facilities, which have been
measured at production or acquisition cost less accumulated depreciation and any accumulated impairment
losses. Items of property, plant and equipment acquired in a business combination are initially recognised at
their fair value.
Cost can include the following items:
•
External borrowing costs related directly to asset construction work in progress accrued exclusively
during the construction period. However, capitalisation of borrowing costs is suspended during extended
periods in which active development is interrupted, unless the temporary delay is a necessary part of the
process of getting an asset ready for its intended use.
•
The operating expenses related directly with construction work in progress under the Group companies’
control and management.
•
The initial estimate of asset dismantling and removal costs.
Costs incurred to develop assets under construction (work in progress) are capitalised under PP&E in
progress. The Group transfers assets from PP&E in progress to property, plant and equipment in use as
soon as the asset is ready for its intended use, provided it is in working condition. Property, plant and
equipment in progress is not depreciated.
Items of property, plant and equipment are subsequently measured using cost accounting, i.e., they are
carried at cost less accumulated depreciation and any impairment losses.
The costs incurred to extend or upgrade items of property, plant and equipment that entail an increase in the
asset’s productivity or capacity or an extension of its useful life are capitalised.
Repair and maintenance costs that do not increase the assets’ productivity or capacity or lengthen their
useful lives are expensed directly as incurred.
•
Depreciation
Property, plant and equipment is depreciated by distributing the cost of the various items on a straight-line
basis over the estimated years of useful life, which is the period over which the Group expects to use the
asset, as follows:
Annual rate
Buildings
2% - 10%
Electricity facilities
2.5% - 8.5%
Fibre optic telecommunications facilities
5% - 12.5%
Other facilities, machinery, tools, furniture and other PP&E
4% - 33%
Consolidated financial statements. 2024
22
Most of the undepreciated items of property, plant and equipment are depreciated at an annual rate of 2.5%.
Depreciation charges are recognised in profit or loss for the year.
The assets’ residual values and useful lives are reviewed at least annually and adjusted, if appropriate, to
reflect current circumstances.
•
Impairment
When the carrying amount of an item of property, plant and equipment exceeds its estimated recoverable
amount, the asset is considered impaired and written down immediately to its recoverable amount.
Recoverable amount is the higher of:
◦
Fair value less costs to sell;
◦
Value in use, calculated as the present value of estimated future flows from continuing use of the
assets less disposal costs.
The Group carries out additional analysis in the event of significant changes in the remuneration regime
applicable to electricity transmission assets in Spain.
The Group tests the cash-generating unit (CGU) to which the assets are allocated for impairment and
recognises any impairment losses (or reversals thereof) in accordance with the policy disclosed in section i)
of this note.
•
Other considerations
Government grants and equivalent amounts received to finance the acquisition of items of property, plant
and equipment are recognised as deferred income and reclassified to profit or loss over the useful lives of
the subsidised assets.
The carrying amount of property, plant and equipment is derecognised when they are withdrawn from use
and no future economic benefits are expected from their disposal. The loss or gain arising on the
derecognition of an asset is calculated at the difference between the sale proceeds and its carrying amount
(initial cost loss depreciation and impairment). These losses or gains are included in profit for the year in
which the asset is derecognised. They are not included in ordinary profit.
e)
Investment properties
The Group companies measure their investment properties at their acquisition cost. When the carrying
amount of these assets exceeds their estimated recoverable amount, the asset is considered impaired and
written down immediately. The fair values of the Group’s investment properties are disclosed in note 9.
The Group’s investment properties other than land are depreciated on a straight-line basis by distributing the
cost of the various items linearly over their estimated useful life, which is the period of time for which the
Group expects to use them (annual rate of 2%).
f)
Leases
As prescribed in IFRS 16, at the inception of a contract, the Group assesses whether it is, or contains, a
lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. The period of time the Group uses an asset
includes consecutive and non-consecutive periods of time. The Group only reassesses the conditions
afterwards if the contract is modified:
•
As lessee
In contracts that contain lease components and non-lease components, the Group allocates the
consideration in the contract to each lease component on the basis of the relative stand-alone price of the
lease component and the aggregate stand-alone price of the non-lease components.
Payments made by the Group that do not imply the transfer of goods or services to it by the lessor do not
constitute a separate lease component but rather form part of the total lease consideration.
Consolidated financial statements. 2024
23
At the commencement date, the Group recognises a right-of-use asset and a lease liability. The right-of-use
asset is initially recognised at the amount of the lease liability, plus lease payments made at or before the
commencement of the lease, any initial direct costs incurred and an estimation of the costs to be incurred to
dismantle or restore the asset (as indicated in the accounting policy for provisions), less any incentive
received.
The Group measures the lease liability at the present value of the lease payments that are not paid at that
date. The lease payments are discounted at the lessee’s incremental borrowing rate, unless the interest rate
implicit in the lease can be readily determined.
Outstanding lease payment obligations comprise fixed payments less any incentives receivable, variable
lease payments that depend on an index or rate, initially measured using the index or rate as at the
commencement date, amounts expected to be payable by the lessee under residual value guarantees, the
exercise price of a purchase option that the lessee is reasonably certain to exercise and payments for
terminating the lease if the lease term reflects early termination.
The Group measures right-of-use assets at cost less accumulated depreciation and any impairment losses,
adjusted for any remeasurement of the associated lease liabilities.
If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the
cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the Group depreciates
the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. If
not, the Group depreciates the right-of-use assets from the commencement date to the earlier of the useful
life of the right-of-use asset or the end of the lease term.
The Group approaches right-of-use asset impairment using the non-financial asset impairment criteria
outlined in note 4.c) above.
After initial recognition, the Group measures its lease liabilities by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or lease modifications and revised in-
substance fixed lease payments.
It recognises variable lease payments not included in the initial measurement of the lease liability in profit or
loss in the period in which the event or condition that triggers those payments occurs.
The Group recognises lease liability remeasurements by adjusting the right-of-use asset. After the carrying
amount of the right-of-use asset has been reduced to zero, the remaining remeasurement is recognised in
profit or loss.
The Group remeasures a lease liability by discounting the lease payments using a revised discount rate, if
there is a change in the lease term or a change in the assessment of the likelihood that the purchase option
will be exercised.
It remeasures a lease liability by discounting the revised lease payments if there is a change in the amounts
expected to be payable under a residual value guarantee or if there is a change in an index or a rate used to
determine those payments, including for example a change to reflect changes in market rental rates
following a market rent review.
The Group accounts for a lease modification as a separate lease if the modification increases the scope of
the lease by adding the right to use one or more underlying assets and the consideration for the lease
increases by an amount commensurate with the stand-alone price for the increase in scope and any
appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease
modification the Group allocates the consideration in the modified contract applying the criteria described
above, determines the lease term of the modified lease and remeasures the lease liability by discounting the
revised lease payments using a revised discount rate. The Group decreases the carrying amount of a right-
of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the
scope of the lease, recognising any resulting gain or loss in profit or loss. The Group adjusts the carrying
amount of the right-of-use asset for all other lease modifications.
Consolidated financial statements. 2024
24
The Group has elected not to apply these lease accounting requirements to short-term leases and leases
for which the underlying asset is of low value, defined as less than 5,000 euros.
In the consolidated statement of cash flows, the lease payments for the principal portion of the liability under
the scope of and accounted for under IFRS 16 are recognised within financing activities, specifically other
cash flows used in financing activities. Cash payments for the interest portion of the lease liability are
classified under interest paid within other cash flows used in operating activities.
•
As lessor
The Group recognises income from operating leases on a straight-line basis over the lease term, unless
another systematic basis is more representative of the time pattern in which use benefit derived from the
leased asset is diminished.
g)
Financial assets and liabilities
Initial recognition and measurement
Financial instruments are classified upon initial recognition as a financial asset, a financial liability or an
equity instrument, in accordance with the economic substance of the contractual agreement and the
definitions of 'financial asset', 'financial liability' and 'equity instrument’ provided in IAS 32 Financial
Instruments: Presentation.
Financial instruments are recognised when the Group becomes party to the contractual provisions of the
instrument.
Financial assets and financial liabilities are measured at fair value plus, in the case of a financial asset or
financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the
acquisition or issue of the financial asset or financial liability. Trade receivables that do not have a significant
financing component are measured initially at their transaction price.
Classification and subsequent measurement
•
Financial assets:
Financial assets are classified at initial recognition at amortised cost; at fair value through other
comprehensive income; or at fair value through profit or loss. This classification is determined by the
business model and contractual terms of the asset.
A financial asset is measured at amortised cost if both of the following conditions are met and it is not
measured at fair value through profit or loss:
◦
The financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
◦
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
A financial asset is measured at fair value through other comprehensive income if both of the following
conditions are met and it is not classified as at fair value through profit or loss:
◦
The financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
◦
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
At initial recognition, the Group may make an irrevocable election to present subsequent changes in the fair
value of an investment in an equity instrument that is not held for trading in other comprehensive income.
This election is made separately for each investment.
All financial assets not classified within financial assets at amortised cost or at fair value through other
comprehensive income are measured at fair value through profit or loss.
Financial assets are not reclassified after initial recognition unless the Group changes the financial asset
business model.
Consolidated financial statements. 2024
25
The Group classifies its financial assets, other than investments accounted for using the equity method, in
the following categories:
◦
Amortised cost: The financial assets classified into this category are subsequently measured at
amortised cost using the effective interest rate method. Amortised cost is reduced by impairment
allowances. Interest income, translation gains or losses and impairment allowances are recognised
in profit or loss. Gains or losses arising on derecognition of these assets are recognised directly in
the consolidated statement of profit or loss.
◦
Fair value through other comprehensive income: These assets are subsequently measured at fair
value. Any resulting gains or losses are recognised in other comprehensive income. Upon
derecognition, the gains or losses accumulated in other comprehensive income are reclassified to
profit or loss. In the case of equity instruments classified into this category, the fair value
remeasurement gains or losses at year-end are recognised directly in other comprehensive income
and are never reclassified to profit or loss.
Dividends from equity investments classified at fair value through other comprehensive income are
recognised in the consolidated statement of profit or loss when the right to receive them is
established.
◦
Fair value through profit or loss: These assets are subsequently measured at fair value. Net fair
value gains and losses, including any interest or dividend income, are recognised in profit or loss.
•
Financial liabilities:
Financial liabilities, which include loans, issued notes and similar instruments, are initially recognised at fair
value less attributable transaction costs. They are subsequently measured at amortised cost using the
effective interest rate method, except for liabilities that have been hedged (section o).
Borrowings are classified under current liabilities in the consolidated statement of financial position unless
they mature more than 12 months after the reporting date, in which case they are classified under non-
current liabilities.
Derecognition
•
Financial assets:
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers substantially all the risks and rewards of ownership of the financial asset or it
neither transfers nor retains substantially all the risks and rewards of ownership and it has not retained
control of the transferred asset.
•
Financial liabilities:
The Group derecognises a financial liability when the obligation specified in the contract is discharged or
cancelled or expires. It also derecognises a financial liability whose terms are modified to the extent that the
modified liability's cash flows are substantially different. In this instance it recognises a new financial liability
at fair value using the new terms. When a modified financial liability is derecognised, the difference between
the carrying amount of the financial liability extinguished and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in profit or loss.
h)
Inventories
Inventories of materials and spare parts are valued at the lower of cost, determined using the weighted
average cost formula, and net realisable value.
The costs of purchase comprise the purchase price, import duties and other taxes (other than those
subsequently recoverable from the tax authorities), and transport, handling and other costs directly
attributable to the acquisition of materials and services. Trade discounts, rebates and other similar items are
deducted in determining the costs of purchase.
If the Group incurs borrowings to finance the purchase of these inventories, the borrowing costs can be
capitalised within the cost of inventories until they are substantially ready for their intended use or sale.
Consolidated financial statements. 2024
26
The Group assesses the net realisable value of its inventories at each year-end. Where cost exceeds
market value or there is uncertainty about whether inventories will be used, they are written down to net
realisable value and an expense is recognised in profit or loss. When the circumstances that previously
caused inventories to be written down no longer exist or when there is clear evidence of an increase in net
realisable value because of changed economic circumstances, the amount of the write-down is reversed
and recognised as income in profit or loss.
i)
Impairment of assets
•
Financial assets
The Group uses the general approach to calculate expected losses on its financial assets other than trade
and other receivables, for which it uses the simplified approach prescribed in IFRS 9, measuring the loss
allowance at an amount equal to lifetime expected credit losses.
In order to determine whether there has been a significant increase in credit risk of a financial asset since its
initial recognition, or to estimate the lifetime expected credit losses of the asset, the Group considers all
reasonable and supportable information that is relevant and available without undue cost and effort. This
includes quantitative and qualitative information based on the historical credit loss experience of the Group
or other entities and observable market information about the credit risk of the specific financial instrument
or similar financial instruments. The Group assumes that the credit risk of a financial asset has increased
significantly if it is more than 30 days past due. Similarly, the Group considers that a financial asset is in
default when it is more than 90 days past due, unless there is reasonable and supportable information that
demonstrates its recoverability.
The Group considers that a debt instrument presents a low level of risk when its credit rating is at least
‘investment grade’ at one of the prestigious rating agencies. The maximum period over which expected
credit losses are measured is the maximum contractual period over which the Group is exposed to credit
risk.
The general approach prescribed in IFRS 9 defines expected credit losses as the weighted average of credit
losses from default events with the probability of default as the weights. Credit losses are measured as the
difference between all contractual cash flows that are due to the Group in accordance with the contract and
all the cash flows it expects to receive (i.e. all cash shortfalls), discounted at the original effective interest
rate.
Broadly speaking, expected loss is based on the following formula:
EAD (exposure at default) x PD (probability of default) x LGD (loss given default) x DF (discount factor).
EAD is the exposure to risk and is measured based on the accounting balances (outstanding balances
receivable in the form of a cash flow or other financial asset) less any prepayments and any sureties or
other guarantees provided by the customer. PD is the probability of default. LGD is the loss that would be
incurred in the event of debtor default and is calculated as (1 – recovery rate). The recovery rate depends
on the specific guarantees of the receivable or loan. The DF represents the time value of money.
Following the IFRS 13 fair value hierarchy, ranking the variables from most observable to least observable,
the Group uses the following models:
◦
If the debtor has quoted credit default swaps (CDS), the probability of default is generally obtained
from the CDS, as this is the most objective credit market measure of the probability of default of a
company at a specific point in time.
◦
If the debtor does not have a quoted CDS, the company’s ratings from the credit rating agencies that
have issued a report are used to calculate the probability of default.
◦
If the debtor does not have a rating, a theoretical rating can be calculated by comparing the debtor's
credit ratios with those of other companies that do have a rating.
Provisions for the impairment of financial assets at amortised cost are deducted from the gross carrying
amount of these assets.
Consolidated financial statements. 2024
27
Impairment losses on trade and other receivables, including contract assets under IFRS 15, are presented
in the consolidated statement of profit or loss.
•
Non-financial assets
The Group companies analyse the recoverability of their assets at each reporting date and whenever events
or changes in circumstances indicate that the carrying amount might not be recoverable. Assets with
indefinite useful lives are tested for impairment at least annually and the remaining assets are tested
whenever there are indications of impairment.
Impairment is deemed to exist when the carrying amount of an asset exceeds its recoverable amount.
Impairment losses are recognised in the consolidated statement of profit or loss. An impairment loss is the
amount by which the carrying amount of an asset exceeds its recoverable amount. The recoverable amount
is the higher of the asset's fair value less costs of disposal and its value in use. Value in use is calculated
based on expected future cash flows.
Impairment losses recognised for an asset in prior periods are reversed if there has been a change in the
estimates used to determine the asset’s recoverable amount by increasing the value of the asset to its
recoverable amount with a credit to profit or loss up to the carrying amount that would have been
determined had no impairment loss been recognised for the asset in prior periods. Goodwill impairment
losses cannot be reversed in future periods.
Impairment is calculated for individual assets. Where it is not possible to estimate the fair value of an asset,
the fair value of the cash-generating unit (CGU) to which the asset belongs is determined.
The Group has CGUs, which are the smallest identifiable groups of assets that generate cash inflows that
are largely independent of the cash inflows from other assets or groups of assets. The Group’s identified
CGUs are those related with the transmission of electricity (in Spain, Peru, Chile and Brazil) and those
related with the fibre optic and satellite telecommunications businesses. The satellite telecommunications
business was classified within non-current assets held for sale at year-end 2024 (note 5).
The Group carries out impairment tests when it identifies indications of impairment, such as amendments to
sector regulations, changes in investment plans or in business performance and other parameters that could
evidence the potential impairment of non-financial assets subject to amortisation/depreciation. In calculating
impairment, the Group verifies that the recoverable amount of each cash-generating unit (CGU) to which the
assets or individual assets belong exceeds the carrying amount.
If it does not, it recognises an impairment loss in profit or loss at the difference between the two under
impairment of and gains/(losses) on disposal of fixed assets up to the limit of the higher of: (i) the CGU's fair
value less costs to sell; and (ii) its value in use.
j)
Share capital, own shares and dividends
The Parent’s share capital is represented by ordinary shares. The cost of issuing new shares, net of taxes,
is deducted from equity.
Own shares are measured at acquisition cost and presented as a deduction from equity in the consolidated
statement of financial position. Any gain or loss arising on the purchase, sale, issuance or cancellation of
own shares is recognised directly in equity.
Interim dividends are deducted from equity for the year to which the dividend relates on the basis of the
corresponding Board resolution. The final dividend is not deducted from equity until it is approved at the
corresponding Annual General Meeting.
k)
Grants and other items
Non-repayable government grants related to assets awarded by different official bodies, and other
equivalent amounts awarded to finance the Group's fixed assets, are recognised when the related
investments are made.
Consolidated financial statements. 2024
28
The Group recognises these grants in profit or loss each year under release of grants related to non-
financial and other assets matching the period during which the assets for which the grants are extended
are depreciated. Where the grant is awarded based on units of product sold and is included in the selling
price of the goods and services, the amount is included in the item of revenue to which it relates.
Income tax credit provided by the public authorities that is in substance a government grant related to
assets is recognised following the above criteria for government grants related to assets.
l)
Contract liabilities
Non-current contract liabilities, which usually arise under multi-year contracts or commitments, are
recognised in profit or loss within revenue over the term of the underlying contracts or commitments.
m) Provisions
•
Employee benefits
◦
Pension obligations
The Group has defined contribution plans, meaning plans that define the benefit an employee will
receive upon retirement as a function of one or more factors, such as age, fund performance, years of
service or pay. A defined contribution plan is a pension plan under which the Group pays fixed
contributions to a separate entity and has no legal or constructive obligation to pay further contributions
if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the
current and prior periods. The contributions are recognised under employee benefits when accrued.
◦
Other long-term employee benefits
Other long-term employee benefits include defined benefit plans other than pension plans, such as
health insurance, for serving and retired Group employees. The expected costs of these benefits are
recognised under provisions over the working life of the employees. These obligations are measured
each year by independent qualified actuaries. The effects of changes in actuarial assumptions are
recognised, net of tax, in reserves within equity in the year they arise, while past service cost is
recognised in the consolidated statement of profit or loss.
This heading also includes the long-term remuneration plans approved by the competent bodies of each
of the Group companies (note 15).
In 2015, the Group’s Appointments and Remuneration Committee approved the rollout of the Structural
Management Plan (the “Plan”) for some of the management team with a view to managing succession in
certain key management positions in an orderly and efficient manner. When the executives affected by
this Plan reach the defined age, they are entitled to a sum equivalent to up to 3.5 times their annual
fixed and variable pay, depending on their category, at the time of leaving the Group. Participation in the
Plan is subject to compliance with certain terms and conditions. The Plan can be modified or revoked by
the Group in certain circumstances, including a consecutive adverse Group earnings performance (note
15).
•
Other provisions
The Group recognises provisions to cover present legal or constructive obligations as a result of past
events, so long as it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and the amount of the obligation can be reliably estimated. They are recognised
when the liability or obligation arises. No provision is recognised for proceedings where the probability that
the event will occur is less than 50% as the Group considers that the outcome of these proceedings will be
favourable.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax risk-free rate that reflects current assessments of the time value of money and the
risks specific to the obligation. The increase in the carrying amount of a provision due to the passage of time
is recognised as interest expense in the consolidated statement of profit or loss.
Consolidated financial statements. 2024
29
n)
Transactions in currencies other than the euro
•
Foreign currency transactions
Foreign currency transactions are translated into the functional currency of the respective Group companies
using the exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities
denominated in foreign currency are translated to the functional currency at the rate of exchange prevailing
on the reporting date. During the year, the differences arising as a result of movements between the
exchange rate used for initial recognition purposes and that prevailing on the date of collection or payment
are recognised in profit or loss.
Fixed-income securities and credits and debits denominated in a currency other than the euro are translated
at the closing exchange rate each year. Any resulting measurement differences are recognised as exchange
gains or losses in the consolidated statement of profit or loss.
Financial derivative instruments and other instruments arranged in foreign currency to hedge the Group’s
exposure to exchange rate risk are accounting for as outlined in derivative financial instruments and hedging
transactions below.
•
Foreign operations
The assets and liabilities of foreign operations are translated into euros using the exchange rates prevailing
on the reporting date. The items of income and expenses of foreign operations are translated into euros
using the transaction date exchange rates.
The resulting translation differences are recognised in other comprehensive income within equity.
o)
Derivative financial instruments and hedging transactions
The Group holds derivative financial instruments to hedge its exposure to foreign exchange and interest rate
risk. It designates certain derivatives as hedging instruments for mitigating exposure to variability in cash
flows attributable to a highly probable forecast transaction arising from changes in interest and foreign
exchange rates.
At the inception of the hedge, the Group formally designates and documents the hedging relationship and
the risk management objective and strategy for undertaking the hedge.
Hedge accounting is only applied when at the inception of the hedge and in subsequent periods, the hedge
is expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the
hedged risk during the period for which the hedge is designated.
Derivative financial instruments are initially recognised at fair value on the purchase date (acquisition cost)
and are subsequently remeasured to fair value at every reporting date. The treatment of the resulting gains
or losses depends on whether the derivative has been designated as a hedging instrument and, if so, the
nature of the hedged item.
When a hedging instrument expires or is sold, or no longer meets the criteria for hedge accounting, any
cumulative gain or loss that has been recognised in equity remains in equity and is reclassified to profit or
loss as the changes in the cash flows of the hedged item are recognised in profit or loss. The gain or loss
deferred in equity is likewise recognised in the consolidated statement of profit or loss when a forecast
transaction is no longer expected to occur.
Fair value measurement gains or losses on hedging instruments corresponding the portion of the hedge
determined to be effective are recognised under other comprehensive income in equity. The portion of the
hedge considered ineffective and the specific component of the gain or loss or related cash flows on the
hedging instrument excluded from the assessment of hedge effectiveness (excluded components) is
recognised with a debit or credit to finance costs or income.
Consolidated financial statements. 2024
30
The separate component of other comprehensive income associated with the hedged items is adjusted to
the lesser of the cumulative gain or loss on the hedging instrument from inception of the hedge and the
cumulative change in the fair value (present value) of the expected future cash flows on the hedged item
from inception of the hedge. However, if the Group expects that all or a portion of a loss recognised directly
in other comprehensive income will not be recovered in one or more future periods, it reclassifies the
amount that is not expected to be recovered to finance income or costs.
The fair value of the derivative financial instruments used for hedging purposes is disclosed in note 19. The
related movements under equity are disclosed in note 13.
p)
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique.
Financial asset and liability fair value measurements are classified using a hierarchy articulated around the
relevance of the inputs used to make the corresponding measurements. The hierarchy categorises the
inputs used in valuation techniques into three levels:
•
Level 1: Fair value measurements based on quoted prices in active markets for identical instruments.
•
Level 2: Fair value measurements based on inputs that are observable for the asset or liability.
•
Level 3: Measurements based on inputs that are not underpinned by observable market data.
If there is no quoted price from an active market, the Group uses valuation techniques that maximise the
use of relevant observable inputs and minimise the use of unobservable inputs. More specifically, for the
various derivative financial instruments not traded on active markets, the Group estimates fair value using
valuation techniques which include the use of recent arm’s length transactions between knowledgeable,
willing parties, reference to other instruments that are substantially the same, discounted cash flow analysis
discounted using the market interest and exchange rates prevailing at the reporting date and options pricing
models enhanced to reflect the issuer’s specific circumstances.
q)
Trade payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method. Payables falling due within one year for which there is no contractual interest rate
that are expected to be settled in the short term are measured at their nominal amount.
r)
Income and expenses
Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised
so as to depict the transfer of promised goods or services to customers in an amount that reflects the
consideration to which it expects to be entitled in exchange for those goods or services.
Most of the Group’s revenue is regulated revenue from its transmission and system operation (TSO)
activities in Spain (notes 3, 23 and 27). Group subsidiary, Red Eléctrica de España, S.A.U. (Red Eléctrica),
has been designated to carry out electricity TSO activities on an exclusive basis. Both of these activities are
regulated by the Electricity Sector Act (Law 24/2013). This legislation, as subsequently implemented by
Royal Decree 1047/2013 and the CNMC Circulars approved in 2019, sets the annual amount of
remuneration receivable for both activities to cover the uninterrupted services provided by Red Eléctrica to
consumers and other electricity sector agents during the year.
The provision of electricity transmission service is considered a single performance obligation. Therefore,
the total price is allocated to that obligation. Similarly, the legal obligations included under the electricity
system operator's obligation are considered a single performance obligation, identified as “providing the
electricity system operation service”. Therefore, revenue from TSO performance obligations is recognised
over time on a straight-line basis, for each year.
Consolidated financial statements. 2024
31
Revenue in the telecommunications business is primarily generated from:
•
Service provision agreements consisting of the lease of satellite capacity to a number of customers from
the telecommunications sector; these services are considered a single performance obligation and the
related revenue is recognised on a straight-line basis over the period for which the customer service is
provided.
•
Contracts granting a number of customers from the telecommunications sector the right to use
backbone fibre optic network and cables, and the provision of services to these same customers, all of
which considered a single performance obligation. Revenue under these contracts is recognised over
time, as the services are provided to the Group’s customers.
If unfolding circumstances change the initial estimates of revenue, management proceeds to review those
estimates. Revisions may result in increases or decreases in estimated revenue which would be recognised
in the profit or loss in the period in which the circumstances giving rise to the revisions are known and
agreed by the parties.
Interest income is recognised using the effective interest method.
Dividend income is recognised when the right to receive payment is established.
s)
Tax matters
Tax expense (income) comprises current tax and deferred tax. Current and deferred tax is recognised as
income or an expense and included in profit or loss for the period, except to the extent that the tax arises
from (i) a transaction or event which is recognised, in the same or a different period, directly in equity or (ii) a
business combination.
Current tax is the amount expected to be paid, using enacted tax rates, in respect of the current year, as
well as any tax payable as a result of prior-year adjustments.
Income tax credit and other tax relief originating from transactions arising during the year are deducted from
accrued tax expense unless there is uncertainty about their utilisation.
Deferred tax and tax expense are calculated and accounted for using the liability method considering
temporary differences between the amounts recognised for financial reporting purposes and those used for
tax purposes. The liability method consists of determining deferred tax assets and liabilities as a function of
the differences between the carrying amount and tax bases of assets and liabilities, using the tax rates
objectively expected to be prevailing when the assets and liabilities are realised and incurred, respectively.
Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be
available against which the tax assets can be utilised.
Deferred income tax is recognised on temporary differences arising on investments in subsidiaries and
associates, except when the Group can control the timing of the reversal of the temporary difference and it
is probable that the temporary difference will not reverse in the foreseeable future.
The corporate tax expense accrued by the companies that file their returns under the consolidated tax
regime is determined by factoring in, in addition to the parameters of relevance in the case of individual
corporate taxpayers, outlined above, the following considerations:
•
The temporary and permanent differences arising as a result of the elimination of gains or losses on
intragroup transactions in the course of determining consolidated taxable income.
•
The tax credits and relief corresponding to each company within the tax group; in this instance the tax
credit or tax relief is allocated to the company that performed the activity or obtained the income
necessary for entitlement to the related credit or relief.
•
The temporary differences arising as a result of the elimination of gains or losses on transactions
between the entities comprising the consolidated Tax Group are recognised at the company that
generated the gain or loss and measured using the tax rate applicable thereto.
•
The Parent recognises the total amount of consolidated income tax payable/(receivable) with a
charge/(credit) to loans to/(borrowings from) group companies and associates.
Consolidated financial statements. 2024
32
•
The amount owed to/(receivable) by the subsidiaries is recognised with a credit/(charge) to borrowings
from/(loans to) group companies and associates.
If the Group believes it is not probable that the tax authorities will accept an uncertain tax treatment or group
of uncertain tax treatments, it factors that uncertainty into determination of its taxable profit, tax bases,
unused tax losses, unused tax credits and tax rates. In the event that the tax assets or liabilities calculated
in this manner exceed the amount presented in the corresponding tax returns, the amounts are recognised
in the consolidated statement of financial position. Changes in facts and circumstances around uncertain tax
positions are recognised as a change of estimate.
The Group offsets deferred tax assets and deferred tax liabilities only if it has a legally enforceable right to
set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts
of deferred tax liabilities or assets are expected to be settled or recovered.
Law 7/2024, implementing the Pillar Two minimum global taxation rules in Spain, was published in the
official state journal on 21 December 2024. This legislation establishes, with retroactive effect for the years
beginning on or after 31 December 2023, a top-up tax, designed to ensure that large multinational
enterprise groups are subject to a minimum effective tax rate of 15% wherever they operate.
The Redeia Group is subject to that top-up tax. To that end, the Group has analysed the potential impacts
for it of application of this tax in 2024, assuming application of the transitional safe harbours contemplated in
transitional provision four of Law 7/2024 and the full calculation, if necessary. The transitional safe harbours
are designed to facilitate the transition to the Pillar Two rules by stipulating a top-up tax of zero if any of the
three required tests are met.
t)
Earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the
Parent by the weighted average number of ordinary shares outstanding during the year, without including
the average number of own shares held during the year.
In the consolidated financial statements for the years ended 31 December 2024 and 2023, the basic
earnings per share figures coincide with the diluted earnings per share figures as there were no potential
ordinary shares in either reporting period.
u)
Insurance
The Group has a number of insurance policies to cover the risks to which its companies’ activities expose it.
The chief risks are potential damage to the Group companies’ facilities and potential third-party claims
arising in the course of their activities. The cost of the related insurance premiums is accrued in the
consolidated statement of profit or loss. The income due from insurance companies as a result of claims is
recognised in the consolidated statement of profit or loss when entitlement is established.
v)
Environment
Expenses arising from actions taken by the Group to protect and improve the environment are expensed as
incurred. Expenses incurred to acquire property, plant and equipment for the purpose of minimising the
Company's environmental impact and protecting and improving the environment are capitalised as an
increase in the value of the assets.
w)
Share-based payments
The Group has implemented share purchase plans whereby employees can receive Parent company
shares as part of their annual pay packages. That remuneration is measured using the closing share price
as of the date of delivery. Expenses incurred under these plans are recognised within employee benefits
expense in the consolidated statement of profit or loss. All of the shares delivered to employees come from
the Parent's treasury stock.
Consolidated financial statements. 2024
33
x)
Contingent assets and liabilities
Contingent assets are not recognised in financial statements since this may result in the recognition of
income that may never be realised. Contingent assets are assessed continually to ensure that
developments are appropriately reflected in the financial statements. If it has become virtually certain that an
inflow of economic benefits will arise, the asset and the related income are recognised in the financial
statements of the period in which the change occurs.
Contingent liabilities are not recognised in the financial statements, except in business combinations to the
extent they represent present obligations that arise as a result of past events and their fair value can be
reliably measured. These liabilities are assessed continually to determine whether an outflow of resources
embodying economic benefits has become probable; if it has become probable for an item previously dealt
with as a contingent liability, a provision is recognised in the financial statements of the period in which the
change in probability occurs.
y)
Non-current assets held for sale, liabilities associated with assets held for sale and
discontinued operations
Non-current assets held for sale, net of the associated liabilities, are measured at the lower of their carrying
amount had they not been so classified and fair value less costs to sell. Non-current assets are classified as
held for sale when it is estimated that their carrying amount will be recovered principally through a sale
transaction rather than through continuing use. For this to be the case, the sale of the asset must be highly
probable, the asset must be available for immediate sale in its present condition and the sale should be
expected to qualify for recognition as a completed sale within one year from the date of classification as a
non-current asset held for sale (note 5).
Consolidated financial statements. 2024
34
5
Non-current assets held for sale and discontinued operations
On 31 January 2025, Redeia, through its subsidiary, Redeia Sistemas de Telecomunicaciones S.A.U.,
agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat for 725 million
euros.
The sale is expected to close in 2025 as it is subject to delivery of certain suspensive conditions,
including approval by Spain’s Council of Ministers, the anti-trust authorities and several regulators in
both Spain and other jurisdictions; it is also subject to approval at Indra’s Annual General Meeting and
to the execution of certain agreements so that Indra can increase its interest and consolidate Hisdesat,
a government satellite services operator in the areas of defence, security, intelligence and foreign
affairs, for accounting purposes.
As a result, at 31 December 2024, the assets and liabilities belonging to the satellite
telecommunications segment carried out by the Hispasat subgroup, whose parent company is Hispasat
S.A. and which is controlled by Redeia through its 89.68% shareholding, have been classified as non-
current assets held for sale.
This classification meets the criteria prescribed in IFRS 5 - Non-current assets held for sale and
discontinued operations (note 4.y). Moreover, since the satellite telecommunications business
represents a separate major line of business, the Group has classified its operations as a discontinued
operation in its consolidated statement of profit or loss, as the Group estimates that at 31 December
2024 the conditions for reclassification under IFRS were met. As a result, the comparative amounts for
2023 have been similarly reclassified and likewise re-presented within a separate line item of Redeia’s
consolidated statement of profit or loss for the year ended 31 December 2023.
The breakdown of non-current assets held for sale and the associated liabilities at year-end 2024 and
2023 and the post-tax profit or loss of discontinued operations for the years then ended:
2024
2023
Non-current assets held
for sale
Liabilities associated
with assets held for sale
Profit/(loss) after tax for
the year from
discontinued operations
Non-current assets held
for sale
Liabilities associated
with assets held for sale
Profit/(loss) after tax for
the year from
discontinued operations
1,242,539
478,532
(138,245)
–
–
29,538
Consolidated financial statements. 2024
35
The next table itemises the impact of the discontinuation of the satellite telecommunications business
by statement of financial position line item at 31 December 2024:
Thousands of euros
31 Dec. 2024
Assets
Intangible assets, property, plant and equipment and investment properties
908,422
Investments accounted for using the equity method
89,402
Other non-current assets
86,922
Total non-current assets
1,084,746
Inventories
1,448
Trade and other receivables
51,441
Other current assets
2,231
Cash and cash equivalents
102,673
Total current assets
157,793
Total assets
1,242,539
Thousands of euros
31 Dec. 2024
Liabilities
Grants and other items
46,514
Non-current financial liabilities
235,916
Other non-current liabilities
66,631
Total non-current liabilities
349,061
Current financial liabilities
51,929
Trade and other payables
77,542
Total current liabilities
129,471
Total liabilities
478,532
Non-current assets held for sale (1,243 million euros) less total liabilities associated with assets held for
sale (479 million euros) less the non-controlling interests in the Hispasat subgroup (39 million euros) is
equivalent to the offer received in the amount of 725 million euros.
The breakdown of the post-tax profit or loss from discontinued operations in 2024 and 2023:
Thousands of euros
2024
2023*
Revenue
230,791
245,280
Share of profits of equity-accounted investees (with similar businesses to that of the
Group)
5,863
4,014
Other operating income
7,936
2,973
Total income
244,590
252,267
Other operating expenses
(109,102)
(121,127)
Depreciation and amortisation
(121,045)
(98,798)
Impairment of and gains/(losses) on disposal of fixed assets
(168,878)
—
Operating profit
(154,435)
32,342
Net finance cost
(15,165)
(8,220)
Profit before tax
(169,600)
24,122
Income tax
31,355
5,116
PROFIT/(LOSS) AFTER TAX FOR THE YEAR FROM DISCONTINUED OPERATIONS
(138,245)
29,238
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as
a discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
The breakdown of profit/(loss) after tax for the year from discontinued operations:
Millions of euros
Total
Attributable to
equity holders of the
parent
Attributable to non-
controlling interests
Profit/(loss) after tax attributable to the Hispasat subgroup
(70,623)
(62,700)
(7,923)
Goodwill impairment loss (note 6)
(73,642)
(73,642)
—
Other income derived from adjustments recognised as part
of the PPA
6,020
6,020
—
Profit/(loss) after tax for the year from discontinued
operations
(138,245)
(130,322)
(7,923)
Consolidated financial statements. 2024
36
The loss recognised by the Hispasat subgroup corresponds almost entirely to the impairment loss
recognised against its satellite assets in the amount of 95 million euros (before tax) (note 7). The overall
impact of the impairment attributable to the Parent in order to recognise the net assets of the satellite
business at their fair value of 725 million euros was a loss of 137 million euros (63 million euros
originating from its share of the loss of the Hispasat subgroup and a goodwill impairment loss of 74
million euros (note 6)).
The net cash flows attributable to the operating, investing and financing activities of the discontinued
operation in 2024 and 2023:
Thousands of euros
2024
2023*
Net cash flows from operating activities
125,995
142,251
Net cash flows used in investing activities
(31,897)
(78,366)
Net cash flows used in financing activities
(111,315)
(22,934)
Impact on cash flows
(17,217)
40,952
(*) The consolidated statement of cash flows for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
6
Intangible assets
The reconciliation of the carrying amounts of the various items of intangible assets and the related
accumulated amortisation in 2024 and 2023 is as follows:
Consolidated financial statements. 2024
37
Thousands of
euros
31 Dec. 2022
Exchange
differences
Changes in
consolidated
group
Additions Derecognitions Transfers
31 Dec. 2023
Exchange
differences Additions Derecognitions Transfers
Transfers to/of non-
current assets held
for sale and
discontinued
operations
31 Dec. 2024
Service concession
arrangements and
industrial property
449,015
(13,585)
–
446
(9,099)
36,946
463,723
27,434
74
–
330
(40,283)
451,278
Trademarks
15,234
–
–
–
–
–
15,234
–
–
–
–
(15,234)
–
Development costs
and software
117,095
567
– 24,663
(2,849)
3,948
143,424
887 1,716
(109)
46,805
(13,934)
178,790
Goodwill
286,955
(1,600)
–
–
–
–
285,355
2,847
–
–
–
(284,253)
3,949
Other intangible
assets
109,698
(3,540)
–
–
–
1,966
108,124
4,637
–
–
–
(59,325)
53,437
Intangible assets
under development
65,459
(1,200)
– 12,674
–
(37,846)
39,087
– 49,196
–
(44,828)
–
43,455
Total intangible
assets
1,043,456
(19,358)
– 37,783
(11,948)
5,014
1,054,947
35,805 50,986
(109)
2,307
(413,028)
730,908
Accumulated
amortisation
Service concession
arrangements and
industrial property
(92,057)
2,896
– (21,140)
8,968
(1,257)
(102,590)
(14,041) (17,924)
–
(410)
12,420
(122,545)
Accumulated
amortisation
Trademarks
(4,951)
–
– (1,523)
–
–
(6,474)
– (1,523)
–
–
7,997
–
Accumulated
amortisation
Development costs
and software
(79,996)
21
– (22,540)
2,791
(79)
(99,803)
(252) (22,784)
108
97
6,454
(116,180)
Accumulated
amortisation Other
intangible assets
(5,626)
88
– (5,749)
–
(2,847)
(14,134)
1,099 (5,629)
–
(765)
19,429
–
Total
accumulated
amortisation
(182,630)
3,005
– (50,952)
11,759
(4,183)
(223,001)
(13,194) (47,860)
108
(1,078)
46,300
(238,725)
Impairment of
service concession
arrangements and
industrial property
(5,357)
–
–
–
–
–
(5,357)
–
–
–
–
5,357
–
Impairment of
trademarks and
goodwill
–
–
–
–
–
–
–
– (73,642)
–
–
73,642
–
Impairment of
development costs
and software
(322)
–
–
–
–
–
(322)
–
–
–
–
322
–
Total impairment
(5,679)
–
–
–
–
–
(5,679)
– (73,642)
–
–
79,321
–
Carrying amount
855,147
(16,353)
– (13,169)
(189)
831
826,267
22,611 (70,516)
(1)
1,229
(287,407)
492,182
Consolidated financial statements. 2024
38
•
Gross intangible assets
Administrative concessions and industrial property mainly include the service concession arrangements
awarded by different public entities to Group companies for the construction and operation of electricity
facilities in Peru.
The breakdown of concession arrangements under operation and/or construction in Peru at 31 December
2024 and 2023:
Thousands of
euros
Redesur
Tesur
Tesur 2
Tesur 3
Tesur 4
CCNCM
Grantor
Peruvian state
Peruvian state
Peruvian state
Peruvian state
Peruvian state
Peruvian state
Activity
Electricity
transmission
Electricity
transmission
Electricity
transmission
Electricity
transmission
Electricity
transmission
Electricity
transmission
Country
Peru
Peru
Peru
Peru
Peru
Peru
Concession term
from start-up of
commercial
operations
30 years
30 years
30 years
30 years
30 years
30 years
Remaining useful
life
7 years
20 years
24 years
26 years
28 years
23 years
Tariff review
frequency
Annual
Annual
Annual
Annual
Annual
Annual
Carrying amount
at 31 Dec. 2024
24,207
47,816
43,923
26,806
34,076
152,433
Carrying amount
at 31 Dec. 2023
26,365
47,272
43,058
26,206
32,654
149,567
Revenue in 2024
20,588
8,213
6,475
3,596
2,033
19,197
Revenue in 2023
19,710
7,841
6,298
3,429
1,846
18,140
Profit/(loss) for
2024
5,819
499
1,302
282
(1,065)
(899)
Profit/(loss) for
2023
4,056
1,380
1,221
(7)
(1,398)
(1,903)
Renewal options
Not contractually
stipulated
Not contractually
stipulated
Not contractually
stipulated
Not contractually
stipulated
Not contractually
stipulated
Not contractually
stipulated
* Tesur 4 began commercial operations on 14 January 2023.
This heading used to also include the different band licences held by the Hispasat subgroup to operate
orbital slots, as well as other satellite rights over orbital slots, which were transferred to non-current assets
held for sale on the accompanying consolidated statement of financial position at 31 December 2024 (notes
1 and 5).
Trademarks used to include the Hispasat trademark in the amount of 15,234 thousand euros recognised as
a result of the Hispasat business combination in October 2019. This item was being amortised on a straight-
line basis over 10 years. At 31 December 2024, this balance was transferred to non-current assets held for
sale on the accompanying statement of financial position (notes 1 and 5).
Goodwill in the amount of 4 million euros at 31 December 2024 (2023: 285 million euros), derives from the
CCNCM business combination. The goodwill has not given rise to any deferred tax liabilities as it is not
expected to be deductible in the future. Goodwill is not amortised but is tested for impairment annually. The
goodwill arising from the Hispasat subgroup and Axess business combinations, totalling 285 million euros,
was transferred to non-current assets held for sale at 31 December 2024 (notes 1 and 5).
Other intangible assets at 31 December 2024 include the perpetual right to regulated tariffs arising from the
acquisition of transmission facilities forming part of the Chilean National Transmission System, accounted
for at Redenor 2, in an amount of 53,437 thousand euros (2023: 52,241 thousand euros). This asset is not
being amortised as it had an indefinite useful life but is tested for impairment annually. At 31 December
2024, 59 million euros related to the satellite segment were reclassified to non-current assets held for sale.
Intangible assets under development at 31 December 2024 and 2023 mainly include the acquisition and
development of software for Group’s TSO activities.
•
Capitalised expenditure
In 2024, the Group capitalised 1,644 thousand euros of costs directly related to internally generated
intangible assets (2023: 1,977 thousand euros). The Group recognised 8.2 million euros of innovation and
development costs in its consolidated statement of profit or loss in 2024 (2023: 6.5 million euros).
Consolidated financial statements. 2024
39
The Group did not capitalise any borrowing costs within intangible assets in 2024 (2023: 65 thousand
euros).
•
Fully amortised intangible assets
At 31 December 2024, the original cost of fully-amortised intangible assets still in use was 87,170 thousand
euros (2023: 103,466 thousand euros), most of which related to development costs and software.
•
Investments in intangible assets outside of Spain
At 31 December 2024 the carrying amount of intangible assets located outside of Spain was 386,399
thousand euros (2023: 410,491 thousand euros).
•
Investment commitments
The Group does not have material contractual commitments for the acquisition of intangible assets relative
to its current volume of assets or its planned investments.
•
Insurance
The Group has taken out a range of insurance policies to cover the risks to which its intangible assets are
exposed. These policies provide adequate coverage against the risks covered.
•
Impairment testing of intangible assets subject to amortisation
The Group tests its assets subject to depreciation/amortisation for indications of impairment in order to
check that their carrying amount remains above their recoverable amount, defined as costs to sell less value
in use.
The Group tested the intangible assets subject to amortisation in the electricity transmission CGU in Peru
for impairment. The Group did not have to recognise any impairment as a result of those tests.
The Group used projected cash flow analysis to perform those tests. The projections were drawn up for the
term of each concession (30 years from commissioning). The cash flow projections beyond year five are
considered reliable on the basis of the Group’s experience with concession-based businesses in the
Peruvian electricity transmission market, where revenue is regulated for 30 years.
The assumptions underpinning the projections were based on updated business forecasts and past
experience. The following assumptions were used:
•
Regulated remuneration: the projections include estimated cash flows up to the end of the concession
arrangements, assuming the rate of return on investment provided for in current regulations in Peru.
•
Capital expenditure: the best information available regarding plans to invest in assets and infrastructure
maintenance over the projection time horizon.
•
Operating and maintenance expenses: projected in line with the growth forecasts derived from the
capital expenditure plan.
•
Other costs: projected on the basis of sector knowledge, past experience and in line with the outlook for
growth derived from the capital expenditure plan.
•
Discount rate: the cash flows were discounted at a pre-tax rate based on a weighted average cost of
capital (WACC) of 9.39% (2023: 9.62%), taken from a report prepared by an independent expert.
The sensitivity analysis modelling the reasonably possible variations in the main inputs, specifically an
increase in the discount rate of 0.25%, did not imply impairment. Given the regulated nature of this
business, no other inputs were varied for the sensitivity analysis.
With respect to the intangible assets subject to amortisation allocated to the satellite business CGUs, in
2024 and 2023, the Group tested those assets for indications of impairment and ran impairment tests,
concluding that they were not impaired. The assumptions used in those tests are outlined in note 7.
•
Impairment testing of intangible assets with indefinite useful lives
At both year-ends, the Group tested its intangible assets with indefinite useful lives (goodwill and the right to
regulated tariffs) for impairment.
Consolidated financial statements. 2024
40
Goodwill
At 31 December 2024, goodwill related primarily to the goodwill recognised in connection with the CCNCM
business combination in the amount of 4 million euros. This goodwill was tested and not considered
impaired at year-end.
At 31 December 2024, the assets and liabilities belonging to the Hispasat subgroup were classified as non-
current assets held for sale; the recoverable amount of those net assets was measured at the sale price
agreed with Indra (notes 1 and 5), which implied recognising an impairment loss on the goodwill recognised
in connection with the Hispasat business combination of 73.6 million euros.
Other intangible assets
As for the assets allocated to the electricity transmission CGU in Chile, which include the intangible asset
recognised for its perpetual right to receive a regulated tariff, the items of property, plant and equipment
outlined in note 7 and the equity-accounted investment in TEN detailed in note 10, the Group conducted
impairment tests in 2024 concluding that these assets are not impaired, as was also the case in 2023.
The Group used projected cash flow analysis to perform those tests. The estimated cash flows span a
period of 40 years of explicit projections from commissioning and assume a rate of growth in perpetuity
thereafter. The cash flow projections beyond year five are considered reliable on the basis of the Group’s
experience with regulated businesses in the Chilean electricity transmission market that imply a perpetual
right to a regulated tariff.
The assumptions underpinning the projections were based on updated business forecasts and past
experience. The following assumptions were used:
•
Regulated revenue: projected using the figures approved in the tariff decree issued by the Chilean
ministry of energy in 2023, updated subsequently using the tariff reset mechanisms provided for in
prevailing legislation.
•
Capital expenditure: the best information available regarding plans to invest in assets and infrastructure
maintenance over the projection time horizon.
•
Operating and maintenance expenses: projected in line with the growth forecasts derived from the
capital expenditure plan.
•
Other costs: projected on the basis of sector knowledge, past experience and in line with the outlook for
growth derived from the capital expenditure plan.
•
Growth rate: the weighted average growth in perpetuity rate was estimated at 2.52% (2023: 2.56%).
•
Discount rate: the cash flows were discounted at a pre-tax rate based on a weighted average cost of
capital (WACC) of 9.89% (2023: 10.21%), taken from a report prepared by an independent expert.
The sensitivity analysis modelling the reasonably possible variations in the main inputs, specifically an
increase in the discount rate of 0.25%, did not imply impairment. Nor did a 0.25% decrease in the growth in
perpetuity rate used imply any impairment. Given the regulated nature of this business, no other inputs were
varied for the sensitivity analysis.
7
Property, plant and equipment
The reconciliation of the carrying amounts of the various items of property, plant and equipment and the
related accumulated depreciation and impairment in 2024 and 2023 is as follows:
Consolidated financial statements. 2024
41
Thousands of euros
31 Dec. 2022
Exchange
differences
Changes in
consolidated
group
Additions
and other
Derecognitions
and
impairment
Transfers
31 Dec. 2023
Exchange
differences
Additions
and other
Derecognitions
and
impairment
Transfers
Transfers to/of
non-current
assets held for
sale and
discontinued
operations
31 Dec. 2024
Cost
Land and buildings
128,341
128
–
16,901
(1,183)
1,648
145,835
(1,831)
6,146
(1,830)
2,164
(34,023)
116,461
Electricity facilities
15,564,405
(6,228)
–
2,704
(1,568) 468,459
16,027,772
11,750
3,510
(15,989) 648,779
–
16,675,822
Telecommunications facilities
1,456,325
5,592
–
68,372
(30,260) 246,431
1,746,460 (10,259)
9,222
(4,682)
9,870
(1,277,932)
472,679
Other facilities, machinery, tools,
furniture and other PP&E
294,438
6
–
4,560
(253)
13,417
312,168
(285)
6,339
(101)
16,101
(19,251)
314,971
Prepayments and PP&E in
progress
1,136,610
95
–
790,278
(358) (710,077)
1,216,548
(2,133)
1,005,08
1
(19,916) (679,135)
(8,029)
1,512,416
Total cost
18,580,119
(407)
–
882,815
(33,622)
19,878
19,448,783
(2,758)
1,030,29
8
(42,518) (2,221)
(1,339,235)
19,092,349
Accumulated depreciation
Depreciation - buildings
(34,640)
297
–
(5,454)
–
(56)
(39,853)
(252)
(6,668)
1,675
254
5,495
(39,349)
Depreciation - Electricity facilities (7,965,678)
373
– (360,355)
1,568
– (8,324,092)
(755) (384,904)
15,475
–
–
(8,694,276)
Depreciation -
Telecommunications facilities
(482,975)
(3,617)
– (104,565)
3,489
(20,117)
(607,785)
5,027 (127,031)
3,745
2,332
493,353
(230,359)
Depreciation - Other fixtures,
machinery, tools, furniture and
other PP&E
(257,716)
(3)
–
(16,191)
612
(536)
(273,834)
303
(12,444)
495 (1,594)
7,403
(279,671)
Total accumulated
depreciation
(8,741,009)
(2,950)
– (486,565)
5,669 (20,709) (9,245,564)
4,323 (531,047)
21,390
992
506,251
(9,243,655)
Impairment
Impairment - Land and buildings
(1,091)
–
–
–
–
–
(1,091)
–
–
–
–
1,091
–
Impairment -
Telecommunications facilities
(104,263)
(217)
–
–
–
–
(104,480)
127
(95,236)
–
–
199,589
–
Impairment - Electricity facilities
(95,544)
–
–
–
–
–
(95,544)
–
–
–
–
–
(95,544)
Impairment - Other fixtures,
machinery, tools, furniture and
other PP&E
(11,407)
120
–
–
–
–
(11,287)
–
–
–
–
11,287
–
Impairment
(212,305)
(97)
–
–
–
–
(212,402)
127
(95,236)
–
–
211,967
(95,544)
Carrying amount
9,626,805
(3,454)
–
396,250
(27,953)
(831)
9,990,817
1,692
404,013
(21,129) (1,230)
(621,015)
9,753,148
Consolidated financial statements. 2024
42
•
Gross property, plant and equipment
Electricity facilities encompass assets subject to regulated remuneration (note 3). Additions to electricity
facilities in 2024 and 2023 related mainly to transmission grid facilities.
Telecommunications facilities mainly consist of the investments associated with concession of the rights to
use and manage the operation of the fibre optic cable network and other related items, pursuant to the 20-
year agreement entered into by Reintel with ADIF-AV in 2014. At 31 December 2024, the investments
associated with the satellite fleet were transferred to non-current assets held for sale on the accompanying
statement of financial position (notes 1 and 5).
Property, plant and equipment include right-of-use assets in an amount of 15.481 thousand euros at 31
December 2024 (2023: 62,010 thousand). These assets are included under the various property, plant and
equipment headings based on their nature (land and buildings; telecommunications facilities; and other
fixtures, machinery, tools, furniture and other PP&E), as detailed in note 8.
•
Capitalised expenditure
Capitalised operating costs directly related to PP&E under construction amounted to 61,187 thousand euros
in 2024 (2023: 56,275 thousand euros). The Group includes all operating expenses incurred to provide
support to the units directly involve in the activity as capitalised expenditure.
In 2024, the Group companies capitalised borrowing costs related to construction as an increase in the
value of its property, plant and equipment in the amount of 15,763 thousand euros (2023: 18,740 thousand).
Borrowing costs were capitalised at a weighted average rate of 2.18% in 2024 (2023: 1.9%).
•
Fully depreciated property, plant and equipment
At 31 December 2024, the original cost of fully-depreciated items of property plant and equipment still in use
was 3,024,232 thousand euros (2023: 3,318,270 euros), of which 2,775,558 thousand euros (2023:
2,694,515 euros) related to electricity facilities.
•
Investments in property, plant and equipment outside of Spain
At 31 December 2024 the carrying amount of property, plant and equipment located outside of Spain was
198,568 thousand euros (2023: 252,058 thousand euros).
•
Investment commitments
The Group places orders periodically to meet its requirements under its investment plans. The different
amounts in these orders will normally result in delivery orders as and when the different projects included in
the plans are activated, so that they do not constitute contractual commitments to acquire assets when they
are placed.
The Group does not have material contractual commitments for the acquisition of property, plant and
equipment relative to its current volume of assets or its planned investments.
•
Government grants
The breakdown of government grants and other non-current advances received related to items of property
plant and equipment is provided in note 14.
•
Insurance
The Group has taken out a range of insurance policies to cover the risks to which its property plant and
equipment are exposed. These policies provide adequate coverage against the risks covered.
•
Impairment testing of property, plant and equipment subject to depreciation
The Group tests its assets subject to depreciation/amortisation for indications of impairment in order to
check that their carrying amount remains above their recoverable amount, defined as costs to sell less value
in use.
Consolidated financial statements. 2024
43
◦
Satellite business
In 2024 the Group updated its recoverable amount calculations for the assets at the legacy satellite
business CGU that were written down for impairment in 2020 to identify any potential adjustments with
respect to the impairment losses recognised in prior years. The identified assets comprising the legacy
satellite business CGU have not changed since the last recoverable amount estimation exercise.
The cash flows were projected for 2025-2040, which is aligned with the satellites’ useful lives. The cash flow
projections beyond year five are considered reliable on the basis of the Group’s experience with investments
with a significant technology component that involve long-term contracts and commitments. Specifically, the
satellite business materialises in long-term contractual commitments with customers, which usually cover
most of the satellites’ useful lives, with a view to locking in a minimum return before launching new satellites.
The idea is to attempt to lay solid foundations for earning the estimated return from a satellite before
embarking on the project.
The Group used the following key assumptions to calculate the recoverable amount of its legacy satellite
business:
•
Revenue was estimated on the basis of the portfolio of existing contracts, the historical renewal rate,
past contract renegotiation experience and new sales forecasts for the expanding growth verticals
identified in sector market research and included in the Hispasat subgroup’s strategic plan.
•
Useful life: 16.5 years from the start of commercial service for the fleet of satellites in the CGU, with the
exception of the H74W-1 and H55W-2 satellites, which have an estimated useful life of between 13 and
15 years.
•
Gross margin: The gross margin modelled for the projection period analysed ranged between 49% and
64% between 2026 and 2040 (average gross margin of 66% in 2023).
•
Exchange rates: the following benchmarks were used: EUR/USD 1.08, EUR/BRL 6.15; and EUR/MXN
17.27.
•
Discount rate (WACC): 8.67% (pre-tax) (2023: 7.85%), taken from a report prepared by an independent
expert.
Based on the analysis performed using the above-listed assumptions, the present value of the cash flows
projected for the legacy satellite business CGU amounted to 559 million euros, which is 95 million euros
below those assets’ carrying amount at 31 December 2024, so that an impairment loss was recognised in
that amount at year-end.
At year-end 2023, the impairment tests were performed using value in use and yielded a recoverable
amount similar to the assets’ carrying amount, so that the assets were not deemed impaired at that reporting
date.
At 31 December 2024, the assets and liabilities belonging to the Hispasat subgroup were classified as non-
current assets held for sale and the recoverable amount of those net assets was calculated based on the
sale price agreed with Indra (notes 1 and 5).
•
Transmission business in Chile
Lastly, in relation to the electricity transmission CGU in Chile, the Group tested this CGU’s assets for
impairment (note 6). The calculations yielded a recoverable amount that is higher than the CGU’s carrying
amount and the Group concluded that the assets in this CGU are therefore not impaired.
Consolidated financial statements. 2024
44
8
Right-of-use assets and lease liabilities
There are right-of-use assets within property plant and equipment and lease liabilities within other financial
liabilities. The main Group assets held under leases accounted for under IFRS 16 are:
◦ Vehicles: mainly vehicle leases. These leases amounted to 5.9 million euros at 31 December 2024
(2023: 5.6 million euros).
◦ Buildings: offices, premises and land needed to carry out the Group’s activities. These leases
amounted to 9.6 million euros at 31 December 2024 (2023: 10.8 million euros).
◦ Telecommunications facilities: Satellite capacity leases. At 31 December 2024, this balance was
transferred to non-current assets held for sale on the accompanying statement of financial position
(2023: 45.6 million euros).
•
Right-of-use assets
The reconciliation of right-of-use assets at the beginning and end of 2024 and 2023:
Thousands of euros
2024
2023
Opening balance
62,010
26,462
Additions
11,199
47,758
Transfers
951
1,207
Derecognitions
(2,831)
(2,803)
Depreciation charge for the year
(15,320)
(10,736)
Translation differences
(409)
122
Transfers to/of non-current assets held for sale and discontinued operations
(40,120)
–
Closing balance
15,480
62,010
At 31 December 2024, the Group’s most significant finance lease agreements related to the lease of offices,
premises and land needed to carry out the Group's activities and vehicle leases.
Consolidated financial statements. 2024
45
•
Lease liabilities
The breakdown of the minimum future lease payments under non-current lease liabilities at year-end 2024
and 2023:
Thousands of euros
2025
2026
2027
2028
2029
Beyond
Total 2024
Minimum future lease payments
5,789
5,789
4,017
—
—
—
15,595
Thousands of euros
2024
2025
2026
2027
2028
Beyond
Total 2023
Minimum future lease payments
21,649
18,284
3,533
4,541
978
11,927
60,912
•
Amounts recognised in profit or loss
The amounts recognised in the consolidated statement of profit or loss for leases under the scope of IFRS
16 in 2024 and 2023:
Thousands of euros
2024
2023
Interest expense on lease liabilities
697
1,497
Depreciation charges
4,087
10,736
Total
4,784
12,233
These amounts do not include those related with the satellite segment, which have been reclassified to
discontinued operations.
The Group also recognised 1,179 thousand euros (2023: 1,226 thousand euros) of operating lease expense
outside the scope of IFRS 16.
•
Amounts recognised in the statement of cash flows
Below are the lease payments made in 2024 and 2023:
Thousands of euros
2024
2023
Lease payments
7,775
11,251
Interest paid under lease liabilities
697
1,497
Total
8,472
12,748
9
Investment properties
The reconciliation of the carrying amount of the Group’s investment properties at the beginning and end of
2024 and 2023:
Thousands of euros
31 December
2022
Additions
Derecogniti
ons
31 Dec. 2023
Additions
Derecogniti
ons
31 Dec. 2024
Cost
Land
558
–
–
558
–
–
558
Buildings
1,680
–
(1,680)
–
–
–
–
Total cost
2,238
–
(1,680)
558
–
–
558
Accumulated depreciation
Buildings
(534)
(25)
559
–
–
–
–
Total accumulated
depreciation
(534)
(25)
559
–
–
–
–
Impairment
–
–
–
–
–
–
–
Carrying amount
1,704
(25)
(1,121)
558
–
–
558
There were no movements under the Group’s investment properties in 2024. In 2023, the Group
derecognised one property following the sale of a premises in Valencia.
On the basis of market appraisals at year-end 2024 and 2023, the Group concluded that its investment
properties were not impaired, as their recoverable amounts remained above their carrying amounts. The
investment properties did not accrue any lease income in 2024 or 2023.
Consolidated financial statements. 2024
46
The market value of the Group’s investment properties, appraised by an independent expert, was
approximately 1.4 million euros at 31 December 2024 (2023: 1.2 million euros).
10
Investments accounted for using the equity method
This heading includes the investments accounted for using the equity method in these consolidated financial
statements due to the existence of significant influence (note 2.d):
•
Transmisora Eléctrica del Norte, S.A. (TEN), which is 50%-owned by the Group through Red Eléctrica
Chile SpA. TEN was incorporated on 1 March 2007 and undertook the construction in Chile of a
transmission line spanning approximately 580 km and the corresponding substations. This project has
connected the Far North Interconnection System to the Central Interconnected System in Chile since
2018. TEN currently operates and maintains the constructed facilities.
•
Compañía Operadora de Infraestructuras Eléctricas, S.A. (COIESA), which is 50%-owned by each of
Red Eléctrica Chile, SpA and Engie Energía Chile SA and was incorporated in November 2023 to jointly
operate a control centre in Chile.
•
Argo Energia Empreendimentos e Participações S.A. (Argo), which is 50%-owned by Redeia through
Red Eléctrica Brasil Holding, Ltda. Argo was incorporated in Brazil in 2016 where it holds nine electricity
concessions, encompassing 4,209km of 500-kV and 230-kV voltage lines and 34 substations.
•
Elewit investments constituting significant influence: investments made by this entity in a number of
innovative start-ups. In 2024, Elewit’s 750 thousands euros investment in Unusuals World, S.L. was
added to the scope of consolidation. Elsewhere, the investment in Nearby Computing, S.L. was
deconsolidated, generating a gain of 629 thousand euros in the consolidated statement of profit or loss
for 2024 (note 2.g).
•
At 31 December 2023, this heading included companies belonging to the Hispasat subgroup, which at
31 December 2024 were reclassified to non-current assets held for sale on the accompanying statement
of financial position (notes 1 and 5). Those companies are:
◦
Hisdesat Servicios Estratégicos, S.A., which is 38.56%-owned by Redeia through Hispasat S.A and
engages in the commercialisation of spatial systems for government use.
◦
Grupo Sylvestris, S.L., which is 9.73%-owned by the Group through Hispasat, S.A., and engages in
reforestation.
◦
Other investees of the Hispasat subgroup include Grupo de Navegación Sistemas y Servicios, S.L
(GSS), 12.82%-owned by Redeia through Hispasat S.A. GSS operates satellite systems.
Consolidated financial statements. 2024
47
The reconciliation of the carrying amounts of these investments at the beginning and end of 2024 and 2023:
Investee
31 Dec. 2023
Exchange
differences
Capital
increase
Changes in
consolidated
group
Dividends
Share of
profit/(loss)
Valuation
and other
adjustments
Transfers
to/of non-
current
assets held
for sale and
discontinued
operations
31 Dec. 2024
Transmisora
Eléctrica del
Norte S.A. (TEN)
236,134
14,740
–
–
–
6,181
7,123
–
264,178
Argo Energia
Empreendimento
s e Participações
S.A.
644,327
(109,217)
–
–
(48,746)
46,213
–
–
532,577
Hisdesat
Servicios
Estratégicos,
S.A.
78,894
–
–
–
–
5,708
–
(84,602)
–
Grupo Sylvestris,
S.L.
4,688
–
–
–
(97)
154
(63)
(4,682)
–
Other Hispasat
Hispasat
subgroup
118
–
–
–
–
–
–
(118)
–
Elewit investees
(significant
interest)
5,016
–
–
(109)
(216)
861
–
–
5,552
COIESA
–
55
–
1,095
–
43
–
–
1,193
Total
969,177
(94,422)
–
986
(49,059)
59,160
7,060
(89,402)
803,500
In 2024, the Group’s share of the profit of the Hisdesat investees, Grupo Sylvestris, S.L. and GSS, in the
amount of 5,862 thousand euros, is recognised under profit/(loss) after tax for the year from discontinued
operations in the accompanying consolidated statement of profit or loss (notes 1 and 5).
Investee
31 Dec. 2022
Exchange
differences
Capital
increase
Changes in
consolidated
group
Dividends
Share of
profit/(loss)
Valuation and
other
adjustments
31 Dec. 2023
Transmisora
Eléctrica del
Norte S.A. (TEN)
233,143
(7,998)
–
–
13,488
(2,499)
236,134
Argo Energia
Empreendimento
s e Participações
S.A.
574,594
23,753
–
–
(1,854)
47,834
–
644,327
Hisdesat
Servicios
Estratégicos,
S.A.
75,134
(44)
–
–
–
3,804
–
78,894
Grupo Sylvestris,
S.L.
4,478
–
–
–
–
210
–
4,688
Other Hispasat
Hispasat
subgroup
118
–
–
–
–
118
Elewit investees
(significant
interest)
4,150
–
1,082
–
–
(216)
–
5,016
Total
891,617
15,711
1,082
–
(1,854)
65,120
(2,499)
969,177
In 2023, the Group’s share of the profit of the Hisdesat investees, Grupo Sylvestris, S.L. and GSS, in the
amount of 4,014 thousand euros, is recognised under profit/(loss) for the year from discontinued operations
in the accompanying consolidated statement of profit or loss (notes 1 and 5).
The key financial indicators for the most significant investees at 31 December 2024 and 2023:
Consolidated financial statements. 2024
48
Thousands of euros
Transmisora Eléctrica
del Norte S.A. (TEN)
Argo Energia
Empreendimentos e
Participações S.A.
Hisdesat Servicios
Estratégicos, S.A.
Grupo Sylvestris, S.L.
2024
2023
2024
2023
2024 (*)
2023
2024 (*)
2023
Non-current assets
645,565
624,920 1,930,664 2,340,589
698,089
654,091
4,383
4,917
Current assets
129,737
112,178
210,158
306,095
244,414
292,745
8,730
8,457
Cash and cash equivalents
76,523
75,183
4,950
5,272
196,271
250,927
4,291
4,291
Total assets
775,302
737,098 2,140,822 2,646,684
942,503
946,836
13,113
13,374
Non-current liabilities
549,409
541,613
873,930 1,058,461
581,966
590,129
–
5
Current liabilities
42,590
43,355
172,064
235,019
43,996
57,635
–
5,407
Total liabilities
591,999
584,968 1,045,994 1,293,480
625,962
647,764
–
5,412
Net assets
183,303
152,130 1,094,828 1,353,204
316,541
299,072
13,113
7,962
Revenue
71,885
94,154
162,060
185,268
51,060
51,049
1,109
2,159
Gross operating profit (EBITDA)
61,732
83,897
146,670
169,706
31,526
32,510
1,109
2,159
Net operating profit (EBIT)
45,924
68,156
145,256
166,116
10,116
11,266
1,109
2,159
Profit after tax
12,362
26,975
104,318
111,010
14,804
9,866
1,109
2,159
Dividends received by the Group
–
–
48,746
1,854
–
–
–
–
(*) Classified as non-current assets held for sale at 31 December 2024.
At 31 December 2024, the Group had extended TEN a loan carried at 16,118 thousand euros (2023: 13,938
thousand euros) (note 18).
Lastly regarding the investment in TEN, which is part of the electricity transmission CGU in Chile, the
Group tested this CGU’s assets for impairment in 2023 (note 7). The calculations yielded a recoverable
amount that is higher than the CGU’s carrying amount and the Group concluded that the assets in this CGU
are therefore not impaired.
11
Inventories
The breakdown of inventories at 31 December 2024 and 2023:
Thousands of euros
2024
2023
Inventories
136,348
97,697
Impairment
(38,607)
(36,445)
Total
97,741
61,252
Inventories mainly comprise materials and spare parts related to electricity facilities. No inventories were
pledged as collateral at either 31 December 2024 or 2023.
The Group companies calculate inventory impairment losses regularly on the basis of the following
assumptions:
•
Impairment due to ageing, based on inventory turnover ratios.
•
Impairment due to surplus stock, based on estimated use in future years.
In 2024, as a result of this analysis, the Group recognised an impairment loss of 2,162 thousand euros in
profit or loss (2023: impairment of 3,009 thousand euros).
12
Trade and other receivables
The breakdown of trade and other receivables at 31 December 2024 and 2023:
Thousands of euros
2024
2023
Trade receivables
16,749
73,149
Other receivables
1,240,951
1,162,584
Current tax assets
1,365
209,201
Total
1,259,065
1,444,934
Trade receivables mainly includes the balances due collection from the lease of satellite capacity and the
provision of telecommunications services. This heading also includes contract assets with customers in the
amount of 10,031 thousand euros at 31 December 2024 (2023: 7,385 thousand euros).
Consolidated financial statements. 2024
49
Other receivables at both year-ends mainly reflects income pending invoice and/or collection from the
provision of regulated transmission and system operation services. Under the settlement system set up by
the Spanish regulator, a portion of these receivables are settled and collected in the following year. These
balances additionally include amounts receivable from applying the methodology provided in the prevailing
remuneration model for transmission activities in Spain, which stipulates that remuneration of facilities
commissioned in year ‘n’ begins as of year ‘n+2’.
Current tax assets decreased in 2024 due to collection from the Spanish tax authorities of income tax paid
on account in 2022.
The fair value estimates reflect market participant assumptions based on available market information and
conditions at the measurement date, including as necessary the risk premiums associated with the
prevailing macroeconomic situation. There are no significant differences between the fair value and carrying
amount of these assets at 31 December 2024 or 31 December 2023.
No material amounts were past due by more than 12 months at 31 December 2024 or 2023 (note 18).
In 2024, the Group recognised receivable impairment losses of 181 thousand euros (2023: reversal of 139
thousand euros).
The expected loss impairment allowance recognised against trade and other receivables stood at 501
thousand euros at 31 December 2024 (2023: 1,617 thousand euros, a figure that included the expected
credit loss recognised in the satellite business, which was reclassified to non-current assets held for sale in
2024).
13
Equity
a)
Capital risk management
The Group's capital management objectives are to safeguard its ability to continue as a going concern in
order to generate returns for its shareholders and maintain an optimum capital structure to reduce the cost
of capital.
To maintain or adjust the capital structure, the Group can adjust the dividends it pays shareholders, return
capital to shareholders or issue new shares.
The Group monitors its capital using a leverage ratio, in line with sector practice. Specifically, it measures
the ratio of net debt over Group equity plus net debt. Net debt is calculated as follows:
Thousands of euros
2024
2023
Non-current borrowings (*)
5,131,182
5,164,911
Current borrowings (*)
1,188,015
506,251
Foreign exchange derivatives
(34,708)
(20,313)
Short-term money market investments (**)
(25,000)
–
Cash and cash equivalents
(889,638)
(675,417)
Net debt
5,369,851
4,975,432
Equity
5,260,068
5,529,057
Leverage ratio
50.5%
47.4%
(*) Interest payable was excluded from both the 2024 and 2023 ratios.
(**) Term deposits and other similar financial assets that are recognised under other current financial assets at amortised cost that do not meet the
criteria for classification within cash and cash equivalents despite being identical in nature to a cash equivalent.
At both reporting dates the Group was compliant with the financial covenants stipulated in its financing
agreements.
On 12 April 2024, Standard & Poor’s issued a report reiterating the most recently assigned credit ratings and
outlook. Specifically, the Parent, Redeia Corporación, and its subsidiary, Red Eléctrica, both hold long-term
ratings of A- and short-term ratings of A-2, with a stable outlook.
On 8 October 2024, Fitch Ratings ratified the Parent’s long-term rating of A- with a stable outlook. As a
result, the Parent and Red Eléctrica currently hold long-term ratings of A- and short-term ratings of F1 from
Fitch Ratings, all with a stable outlook.
Consolidated financial statements. 2024
50
b)
Equity attributable to equity holders of the parent
•
Capital and reserves
◦
Share capital
At 31 December 2024 and 2023, the Company’s share capital comprised 541,080,000 shares with a unit
par value of 0.50 euros represented by book entries, all subscribed and paid in, carrying the same voting
and dividend rights (notwithstanding the limits outlined in the paragraph below), with a unit par value of
fifty euro cents. They are admitted to trading on the four Spanish stock exchanges and are traded
through the continuous market (SIBE for its acronym in Spanish).
The Parent is subject to the shareholder limitations stipulated in additional provision twenty-three of the
Spanish Law 54/1997 (27 November 1997) and article 30 of the Electricity Sector Act.
Specifically, any individual or entity may hold shares in the Parent, provided that the sum of their direct
or indirect interests in its share capital does not exceed 5% and their voting rights do not surpass 3% of
the total. These share may not be syndicated for any purpose. Voting rights in the Parent are limited to
1% in the case of entities that carry out activities in the electricity sector, and individuals and entities that
hold direct or indirect interests exceeding 5% of the share capital of such companies, notwithstanding
the limits applicable to generators and agents under article 30 of the Electricity Sector Act. The above
limits on shareholdings in the Parent do not apply to the state industrial holding company, SEPI for its
acronym in Spanish, which must maintain a shareholding of at least 10%. At 31 December 2024 and
2023, SEPI held 20% of the Company’s share capital.
◦
Reserves
This heading includes:
▪
Legal reserve
Spanish companies must transfer 10% of profit for the year to a legal reserve until this reserve is
equivalent to at least 20% of share capital. This reserve cannot be distributed to shareholders until
that threshold is met and may only be used to offset losses, provided no other reserves are
available. Under certain conditions, this reserve may also be used to increase share capital. At 31
December 2024 and 2023, the Parent’s legal reserve was equal to 20% of its share capital (54,199
thousand euros).
▪
Other reserves
This heading includes the Parent’s voluntary reserves, its reserves in subsidiaries and first-time
application reserves. At 31 December 2024, they amounted to 3,769,868 thousand euros (2023:
3,756,198 thousand euros).
This heading also includes reserves set aside under legal requirements of 464,680 thousand euros
(2023: 349,500 thousand euros), notably including:
*
The asset revaluation reserve generated at the Parent in 1996 in the amount of 247,022
thousand euros. This reserve can be used, without becoming taxable, to offset losses, increase
capital or, 10 years after its creation, as unrestricted reserves, as prescribed in Royal Decree-
Law 2607/1996. However, this balance may only be distributed, directly or indirectly, when the
restated assets have been fully depreciated, sold or derecognised.
Consolidated financial statements. 2024
51
*
As allowed under article 25 and in article 62.1.d) of Law 27/2014 of 27 November 2014, the Tax
Group, of which the Company is the parent, recognised the capitalisation reserve at Red
Eléctrica, S.A.U. and Redeia Corporación, S.A. in a total amount of 217,658 thousand euros,
corresponding to 2015 (29,110 thousand euros), 2016 (15,406 thousand euros), 2017 (11,312
thousand euros), 2018 (16,707 thousand euros), 2019 (19,668 thousand euros), 2020 (8,160
thousand euros), 2021 (4,548 thousand euros), 2022 (18,685 thousand euros) and 2023 (94,062
thousand euros). This reserve will be restricted for three years. The proposed endowment of the
capitalisation reserve for the year ended 31 December 2024, in keeping with the above-
mentioned article 62.1.d), in the amount of 10,490 thousand euros, will be made at Red
Eléctrica, S.A.U., as the Tax Group company that is making the corresponding adjustment to its
income tax for 2024 (note 22).
◦
Interim dividends and motion for the distribution of dividends by the Parent
The interim dividend approved by the Board of Directors in 2024 has been recognised by reducing
the Group's equity by 108,082 thousand euros at 31 December 2024 (and by 147,249 thousand
euros at year-end 2023) (note 18).
On 29 October 2024, the Board of Directors agreed to pay an interim dividend from 2024 earnings in
the amount of 0.20Company’s euros per share (before withholding tax), payable on 7 January 2025
(2023: 0.2727 per share).
The dividends paid in 2024 and 2023 were as follows:
2024
2023
Thousands of euros
% of par
value
Euros per
share
Amount
% of par
value
Euros per
share
Amount
Ordinary shares
200.00%
1.0000
539,968
200.00%
1.0000
539,579
Total dividends paid
200.00%
1.0000
539,968
200.00%
1.0000
539,579
Dividends charged against profit
200.00%
1.0000
539,968
200.00%
1.0000
539,579
The cash flow forecast for the period elapsing between 30 September 2024 and 7 January 2025
showed the existence of sufficient liquidity to substantiate its distribution, as required under article
277 a) of the Corporate Enterprises Act:
As required in article 277 a) of the Corporate Enterprises Act, the Board authorised the issuance of
the following liquidity statement:
Liquidity statement of Redeia Corporación, S.A.
Thousands of euros
Funds available at 30 September 2024:
Undrawn non-current loans
689,908
Undrawn current loans
25,000
Short-term financial investments and cash
50,715
Forecast inflows:
Operating transactions
43,093
Financing transactions
143,136
Forecast outflows:
—
Operating transactions
(107,572)
Financing transactions
(459)
Forecast fund availability at 7 January 2025:
843,821
The Parent’s Board of Directors has proposed a final dividend of 0.60 euros per share, a motion to
be put before the Annual General Meeting, which would put the total 2024 dividend at 0.80 euros per
share (2023: 1 euro).
In addition, given the Company’s ability to generate cash and its undrawn credit facilities (note 17), it
expected to have sufficient liquidity during a period of one year from declaration of the interim
dividend.
Consolidated financial statements. 2024
52
◦
Other equity instruments
Redeia Corporación issued subordinated perpetual notes in 2023. The securities were structured
into a single tranche of 500 million euros and qualify as green financing. The par value of each
security was 100 thousand euros and they were issued at a price of 99.67% of par. They carry a
coupon of 4.625%.
Given that the repayment of the principal and payment of the coupon are entirely at the discretion of
the Company, these subordinated notes qualify as an equity instrument and are presented within
other equity instruments on the consolidated statement of financial position at 31 December 2024
and 2023 and in the consolidated statements of total changes in equity for the years then ended.
◦
Own shares
At 31 December 2024, the Parent held own shares representing 0.12% of its share capital;
specifically, it held 671,942 shares with a unit par value of 50 euro cents for an aggregate par value
of 336 thousand euros, which it acquired at an average price of 17.53 euros per share (2023:
1,112,017 own shares representing 0.21% of its share capital with a unit par value of 50 euro cents
for an aggregate par value of 556 thousand euros, acquired at an average price of 17.53 euros per
share).
These shares are recognised as a reduction in the Group’s equity and were carried at 11,780
thousand euros at 31 December 2024 (2023: 19,496 thousand euros).
The Parent is compliant with all of its obligations under article 509 of the Corporate Enterprises Act
which stipulates that, other than in the exceptional cases itemised in company law, the par value of
any own shares acquired by listed companies, plus those already held directly or indirectly by a
parent and its subsidiaries, may not exceed 10% of share capital. The subsidiaries do not hold any
own shares or any Parent shares.
◦
Profit for the year attributable to equity holders of the parent
In 2024, the profit attributable to equity holders of the parent amounted to 368,438 thousand euros
(2023: 689,640 thousand euros).
•
Valuation adjustments
◦
Financial assets at fair value through other comprehensive income
At both reporting dates, this heading includes the changes in the fair value of the equity instruments
classified as financial assets at fair value through other comprehensive income as a result of
movements in the quoted share price of Redes Energéticas Nacionais, S.G.P.S., S.A. (hereinafter,
REN), a company traded in the benchmark Portuguese stock index, the PSI 20, in which the Group has
a 5% interest. At 31 December 2024, the fair value gain stood at 9,592 thousand euros (2023: 11,594
thousand euros).
◦
Hedging transactions
This heading includes the changes in the value of the Group’s derivative financial instruments. At 31
December 2024, the fair value gain stood at 6,728 thousand euros (2023: 7,724 miles thousand euros).
◦
Translation differences
This heading mainly includes the exchange differences arising from the translation of the financial
statements of foreign operations into euros. At 31 December 2024, they amounted to exchange losses
of 170,226 thousand euros (2023: losses of 63,882 thousand euros), generated mainly by the
movement in the Brazilian real relative to the euro.
Consolidated financial statements. 2024
53
c)
Equity attributable to non-controlling interests
This equity heading of the accompanying consolidated statement of financial position reflects the non-
controlling interests in all the Hispasat subgroup companies, in Reintel and in Redenor, of Chile.
The reconciliation of the carrying amount of non-controlling interests at the beginning and end of 2024 and
2023:
Thousands of euros
31 Dec.
2022
Changes in
consolidati
on scope
and capital
increases
Profit for
the year
Payment
of
dividend
s and
other
31 Dec.
2023
Changes in
consolidation
scope and
capital
increases
Comprehen
sive income
Payment of
dividends
and other
31 Dec.
2024
Non-controlling interests
104,741
16,170
30,033 (30,647) 120,297
–
20,249
(34,435) 106,111
The table below provides summarised financial information for the non-controlling interests that are material
to the Group at year-end 2024 and 2023:
Redenor
Hispasat subgroup
Reintel
Thousands of euros
2024
2023
2024
2023
2024
2023
Non-current assets
120,638 111,533
– 1,111,898 400,777 412,152
Current assets
6,850
19,003
–
230,869
83,482
76,480
Non-current assets held for sale
–
– 1,105,603
–
–
–
Assets
127,488 130,536 1,105,603 1,342,767 484,259 488,632
Non-current liabilities
50
54
–
451,326 363,468 363,595
Current liabilities
59,822
67,801
–
163,557
28,872
25,819
Liabilities associated with assets held for sale
–
–
487,955
–
–
–
Liabilities
59,872
67,855
487,955
614,883 392,340 389,414
Equity
67,617
62,681
617,648
727,884
91,919
99,218
Revenue
7,040
6,800
–
249,317 148,443 150,191
Expenses
2,392
11,823
–
218,722
64,976
64,992
Gross operating profit (EBITDA)
4,649
(5,023)
–
30,595
83,467
85,199
Profit/(loss) for the year from continuing operations
910
(9,510)
–
17,505
58,971
58,883
Profit/(loss) after tax for the year from discontinued
operations
–
–
(70,623)
–
–
–
Profit/(loss) attributable to non-controlling interests
(770)
(1,502)
(7,893)
2,675
28,852
28,850
The equity of the Hispasat subgroup includes non-controlling interests in the amount of 39 million euros.
14
Grants and other non-current advances received
The reconciliation of the carrying amount of these assets at the beginning and end of 2024 and 2023:
Thousands of euros
31 Dec.
2022
Additions Derecognitions
Transfers
to profit or
loss
31 Dec.
2023
Additions
Transfers
to profit or
loss
Transfers to/of
non-current
assets held for
sale and
discontinued
operations
31 Dec. 2024
Grants related to assets and
other non-current advances
received
746,498 255,772
(23,304) (33,869) 945,097 253,872 (30,605)
(46,514)
1,121,850
Government grants related to assets mainly include the amounts received by Red Eléctrica for the
construction of its electricity facilities and by Hispasat for the construction of satellite assets.
This heading also includes the tax relief received in exchange for investments in fixed assets in the Canary
Islands, which, by nature are akin to grants related to assets (note 2.c) and the amounts or technical
facilities received by the Group under agreements with third parties.
Additions in 2024 mainly recognise the grant received for the electricity interconnection between Spain and
France through the Bay of Biscay, which Red Eléctrica is building together with RTE, through its investee,
INELFE.
The amounts transferred to the consolidated income statement of profit or loss for the year reflect the
annual release schedule that matches the depreciation schedules for the assets associated with the above
grants and tax relief.
Consolidated financial statements. 2024
54
46.5 million euros of grants related to the Hispasat subgroup were reclassified to non-current assets held for
sale at 31 December 2024.
15
Non-current and current provisions
The reconciliation of the carrying amount of this consolidated statement of financial position heading at the
beginning and end of 2024 and 2023:
Thousands of euros
31 Dec. 2023
Additions
Utilised /
Derecognised
Transfers
Actuarial
gains and
losses
Exchange
differences
Transfers
to/of non-
current
assets held
for sale and
discontinued
operations
31 Dec. 2024
Non-current provisions
Provisions for staff costs
65,839
6,357
(2,286)
(4,985)
2,381
–
(5,738)
61,168
Other provisions
68,634
4,541
(6,565)
1,771
–
686
(6,867)
62,200
Total non-current
134,473
10,898
(8,801)
(3,214)
2,381
686
(12,605)
123,368
Current provisions
Other provisions
30,606
3,172
(26,402)
–
–
–
(4,204)
3,172
Total current
30,606
3,172
(26,402)
–
–
–
(4,204)
3,172
Total provisions
165,079
14,070
(35,507)
(3,214)
2,381
686
(16,809)
126,540
Thousands of euros
31 Dec. 2022
Additions
Utilised
Transfers
Actuarial gains
and losses
31 Dec. 2023
Non-current provisions
Provisions for staff costs
69,497
7,293
(1,641)
(5,238)
(4,071)
65,839
Other provisions
70,325
7,160
(2,504)
(6,347)
–
68,634
Total non-current
139,822
14,453
(4,145)
(11,585)
(4,071)
134,473
Current provisions
Other provisions
30,536
2,219
(2,149)
30,606
Total current
30,536
2,219
(2,149)
–
–
30,606
Total provisions
170,358
16,672
(6,294)
(11,585)
(4,071)
165,079
Provisions for employee benefits include the defined benefit plans, which mainly reflect the Group’s future
commitments with employees (mostly health insurance) upon their retirement, calculated based on actuarial
studies carried out by an independent expert. The reconciliation of the movement in those defined benefit
plans is provided below:
Thousands of euros
31 Dec. 2023
Additions
Utilised
Actuarial
gains/(losses)
31 Dec. 2024
Non-current liability under defined benefit
plans
48,039
2,315
(2,126)
2,381
50,609
Thousands of euros
31 Dec. 2022
Additions
Utilised
Actuarial
gains/(losses)
31 Dec. 2023
Non-current liability under defined benefit
plans
50,904
2,522
(1,316)
(4,071)
48,039
The movements recorded in 2024 and 2023 were driven mainly by annual accruals, as well as changes in
the actuarial assumptions used. The additions are recognised as employee benefits expense or as finance
costs, depending on their nature. The effects of changes in actuarial assumptions are recognised in
reserves.
The amount recognised under employee benefits expense in the 2024 consolidated statement of profit or
loss was 912 thousand euros (2023: 862 thousand euros) and the amount recognised under finance costs
was 1,403 thousand euros (2023: 1,660 thousand euros).
Changes in the actuarial assumptions implied a gain of 2,381 thousand euros in 2024 (2023: loss of 4,071
thousand euros). The actuarial gains recognised in 2024 were shaped by losses due to changes in financial
assumptions in the amount of 2,289 thousand euros (2023: losses of 3,824 thousand euros) offset by gains
due to changes in demographic assumptions in the amount of 4,525 thousand euros (2023: losses of 247
thousand euros)
Consolidated financial statements. 2024
55
The assumptions used in 2024 and 2023 were as follows:
Actuarial assumptions
2024
2023
Discount rate
3.26%
3.31%
Cost increase
3.00%
3.00%
Mortality tables
PER2020_Col_1er.orden PER2020_Col_1er.orden
The impact of a one-point increase and a one-point decrease on health insurance costs in 2024 would be as
follows:
Sensitivity to change in growth in costs assumption
2024
2023
(+1%)
(-1%)
(+1%)
(-1%)
Thousands of euros
Current service cost
212
(162)
222
(167)
Net interest cost of the cost of the post-employment health
insurance
3
(4)
4
(3)
Accumulated post-employment benefit obligations for health
insurance
9,472
(7,405)
8,902
(6,963)
Elsewhere, the impact of a half-point increase and decrease in the discount rate used by way of actuarial
assumption in 2024 is shown below:
Sensitivity to changes in discount rate
2024
2023
(+0.5%)
(-0.5%)
(+0.5%)
(-0.5%)
Thousands of euros
Current service cost
(85)
96
(87)
101
Net interest cost of the cost of the post-employment health
insurance
206
(208)
220
(220)
Accumulated post-employment benefit obligations for health
insurance
(3,808)
4,339
(3,572)
4,070
Provisions for employee benefits also includes the Group’s long-term remuneration plans and other
obligations (note 4 l). In 2024, the Group recognised 2,973 thousand euros under employee benefits
expense in connection with these plans (2023: 2,634 thousand euros). At 31 December 2024, 5.7 million
euros of provisions for employee benefits related to the Hispasat subgroup were reclassified to liabilities
associated with assets held for sale.
Other provisions includes primarily the amounts recognised by the Group annually to cover potentially
unfavourable rulings on administrative proceedings, administrative disciplinary proceedings, judicial reviews
(mostly expropriation proceedings) and out-of-court claims. The amounts of the provisions recognised for
these events are measured considering the economic compensation of the ongoing appeals, litigation,
claims and general legal or out-of-court proceedings to which the Group companies are party.
Provisions at 31 December 2023 likewise included the fair value of the contingent liabilities identified in the
Hispasat subgroup business combination, in the amount of 23 million euros, mainly associated with legal
and tax contingencies in Brazil that had yet to be ruled on. A portion of these provisions was derecognised
at 31 December 2024 following the finalisation in 2024 of the court proceedings related with ICMS, VAT
levied by the Brazilian states on the circulation of goods and the provision of interstate and inter-municipal
transportation and communications services, which culminated in favourable rulings that cannot be
appealed. At 31 December 2024, the remaining balance of 1.9 million euros was reclassified to liabilities
associated with assets held for sale on the accompanying consolidated statement of financial position.
Consolidated financial statements. 2024
56
16
Other non-current liabilities
Other non-current liabilities mainly includes contract liabilities derived from revenue collected in advance
under the agreements signed with several telecommunications players for the right to use the fibre optic
network, which are taken to the consolidated statement of profit or loss over the terms of those agreements,
which run until 2046 and amounted to 33,624 thousand euros at 31 December 2024 (2023: 33,922
thousand euros).
At 31 December 2023, this heading also included 42,160 thousand euros of revenue collected in advance
for satellite capacity services to be provided in the future. At that year-end it also included the prepayment
received in 2023 from Spain’s Ministry of Economic Affairs and Digital Transformation in the amount of
36,000 thousand euros to fund the Single Rural Demand Plan under the scope of Spain’s post-pandemic
Recovery, Transformation and Resilience Plan. At 31 December 2024, these items were recognised under
liabilities associated with assets held for sale on the accompanying consolidated statement of financial
position (notes 1 and 5).
17
Financial risk management policy
The Group’s comprehensive risk management policy establishes principles and guidelines to ensure that
any significant risks that could compromise the objectives and activities of Redeia are identified, analysed,
assessed, managed and controlled, and that these processes are carried out systematically, framed by
uniform criteria.
The main guidelines set down in those principles can be summed up as follows:
•
Risk management should be fundamentally proactive and directed towards the medium and long term,
taking into account possible scenarios in an increasingly global environment.
•
Risk should generally be managed in accordance with consistent criteria, distinguishing between the
importance of the risk (probability/impact) and the investment and resources needed to mitigate it.
•
Financial risk management should be designed to avoid undesirable movements in the Group’s
fundamental value, rather than generating extraordinary gains.
Redeia’s finance management is responsible for managing financial risk, ensuring consistency with the
Group’s strategy and coordinating risk management across the various Group companies, identifying the
main risks and defining the initiatives to be taken, based on different financial scenarios.
The methodology for identifying, measuring, monitoring and controlling financial risks, as well as the
performance indicators and measurement and control tools specific to each risk, are set down in Redeia’s
Comprehensive Risk Management System and are formally documented in the Comprehensive Risk
Management Policy, the General Management Procedure and the internal risk control system.
The financial risks to which the Group is exposed are:
a)
Market risk
Market risk reflects the risk of movements in the financial markets with respect to prices, interest rates,
exchange rates, lending terms and conditions and other variables that could affect the Group’s finance costs
in the short, medium or long term.
Consolidated financial statements. 2024
57
These risks are managed by borrowing in specific currencies, at specific maturities and opting for specific
interest rate formulas, and by using financial hedging instruments that modify the characteristics of the
Company’s financial structure. Market risk specifically includes:
•
Interest rate risk
Movements in interest rates affect both the fair value of the assets and liabilities that carry interest at a fixed
rate and the future cash flows of assets and liabilities benchmarked to floating rates. The structuring of the
Company's borrowings at 31 December 2024 and 2023:
2024
2023
Thousands of euros
Fixed rate
Floating rate
Fixed rate
Floating rate
Non-current issues
3,688,609
15,000 3,709,449
14,960
Non-current bank borrowings
989,783
437,790 1,209,057
231,445
Current issues
1,049,504
–
5,970
–
Current bank borrowings
68,037
70,474
103,956
396,325
Total gross borrowings
5,795,933
523,264 5,028,432
642,730
Percentage
92%
8%
89%
11%
The Group's debt structure implies low exposure to interest rate risk, framed by its borrowing policy,
specifically including its target of aligning its borrowing cost with the rate of return applied to the Group's
regulated assets.
The Group’s exposure to interest rate risk at year-end 2024 and 2023 primarily affects equity for the year
due to exposure to changes in the fair value of derivative financial instruments (no impact on its earnings for
the year). The sensitivity analysis performed around this risk is shown below:
Impact on consolidated equity of change in market
interest rates
2024
2023
Thousands of euros
+0.10%
-0.10%
+0.10%
-0.10%
Interest rate hedges:
- Cash flow hedge: Interest rate swap
881
(884)
2,339
(2,349)
Interest rate and exchange rate hedges:
- Cash flow hedge: Cross currency swap
(62)
62
(11)
11
An increase or decrease of 0.10% in interest rates in 2024 would have decreased or increased consolidated
earnings by 548 thousand euros (2023: 649 thousand euros).
The valuation technique used to test the sensitivity of the Group’s exposure to this risk was to discount the
future cash flows at the market interest rates prevailing at 31 December 2024 and 2023.
•
Foreign exchange risk
This risk factor encompasses transaction risk as a result of having to collect or pay cash in a currency other
than the euro (mainly in US dollars and Brazil reais) and translation risk as a result of translating the
financial statements of subsidiaries whose functional currency is not the euro.
In order to eliminate the foreign exchange risk derived from the Group’s private placements in the US, it has
arranged cash flow hedges, specifically USD/EUR cross-currency swaps, which cover the total amount and
duration of those placements until October 2035 (notes 18 and 19). Appreciation or depreciation of 10% by
the euro against the US dollar would have had the following impacts on equity at 31 December 2024 and
2023:
Impact on consolidated equity of change in exchange rates
2024
2023
Thousands of euros
+10% euro appreciation -10% euro depreciation +10% euro appreciation -10% euro depreciation
US dollar
26,222
(18,854)
15,426
(18,854)
Total
26,222
(18,854)
15,426
(18,854)
Consolidated financial statements. 2024
58
The Group mitigates the translation risk arising on assets located in countries whose functional currency is
not the euro by financing part of these investments in those companies’ functional currencies. The Group
has also arranged a hedge of its net investment in US dollars in the form of a cross-currency swap to
January 2026 (note 19). As a result of these arrangements, appreciation or depreciation of 10% by the euro
against the currencies to which the Group was exposed at year-end would have decreased or increased the
equity attributable to equity holders of the parent by approximately 67 million euros, of which 16 million
euros relates to dollar exposure and 51 million euros to exposure to the Brazilian real (2023: 86 million
euros, of which 16 million euros related to dollar exposure and 68 million euros to exposure to the Brazilian
real).
•
Price risk
The Group is exposed to the risk of movements in the price of the equity instruments classified in its
consolidated statement of financial position as financial assets at fair value through other comprehensive
income. The Group’s main investment in listed shares it its 5% interest in REN. At 31 December 2024 a gain
or correction of 10% in REN’s share price on the Portuguese stock exchange would have increased or
decreased equity by approximately 8 million euros (2023: 8 million euros).
b)
Credit risk
The characteristics of the revenue generated by Redeia’s core electricity system transmission and operation
activities and the solvency of electricity system agents mean the Group is not materially exposed to credit
risk. The credit risk exposure of the rest of the Group companies is managed mainly through controls and
risk mitigation measures.
In any case, credit risk is managed through policies stipulating requirements regarding counterparty
creditworthiness and the provision of additional guarantees when necessary.
Elsewhere, at year-end the Group's exposure to credit risk due to changes in the fair value of its derivatives
was insignificant; since 2015, it has had collateral assignment agreements involving collateral swaps with
various counterparties. At 31 December 2024, excluding Hispasat, less than 1% of receivables were past
due (2023: 3%) and the Group companies believe there is no uncertainty as to their recoverability. The
credit quality of the Group’s accounts receivable is considered to be high.
c)
Liquidity risk
Liquidity risk arises from differences between the amounts and timing of receipts and payments under the
Group companies’ various assets and liabilities.
This risk is managed primarily by controlling the maturities of its borrowings, holding a considerable volume
of available funds throughout the year and setting ceilings on the amounts of maturities concentrated in any
defined time interval. This process is carried out by the various Group companies in accordance with each
of their practices and limits. The limits set vary by region so as to factor in liquidity conditions in the various
companies’ markets. In addition, liquidity management policy involves drawing up cash flow projections in
the main operating currencies, factoring in the amounts of liquid assets and undrawn funds, controls over
the liquidity ratios gleaned from the consolidated financial statements and comparison with market
requirements.
The Group’s borrowings at 31 December 2024 had an average maturity of 4.7 years (2023: 4.5 years). The
maturity schedule of the Group’s issued securities and bank borrowings is provided in note 18.
The Group boasts a solid financial position. Group liquidity at year-end 2024 stood at 2,929 million euros
(2023: 2,351 million euros): 890 million euros of unrestricted cash (2023: 409 million euros), 25 million euros
of short-term deposits due within less than three months from the reporting date (2023: 266 million euros)
and 2,014 million euros of undrawn credit lines (2023: 1,675 million euros), all of which excluding the
equivalent liquidity instruments of Hispasat, which have been reclassified to non-current assets held for
sale. This liquidity position ensures the Group's ability to meet its operating cash flow requirements and
honour its debt maturities in 2025 and deal with any potential adverse situations in the financial markets in
the months to come.
Consolidated financial statements. 2024
59
18
Financial assets and liabilities
a)
Financial assets
The breakdown of the Group’s current and non-current financial assets at 31 December 2024 and 2023:
31 Dec. 2024
Thousands of euros
At fair value
through other
comprehensive
income
At fair value
through profit or
loss
At amortised
cost
Hedging
derivatives
Total
Equity instruments
76,194
16,153
–
–
92,347
Derivatives
–
–
–
20,984
20,984
Other financial assets
–
1,543
351,202
–
352,745
Non-current
76,194
17,696
351,202
20,984
466,076
Other financial assets
–
–
33,618
–
33,618
Derivatives
–
–
–
20,194
20,194
Current
–
–
33,618
20,194
53,812
Total
76,194
17,696
384,820
41,178
519,888
31 Dec. 2023
Thousands of euros
At fair value
through other
comprehensive
income
At fair value
through profit or
loss
At amortised
cost
Hedging
derivatives
Total
Equity instruments
78,196
10,059
–
–
88,255
Derivatives
–
–
–
83,982
83,982
Other financial assets
–
2,825
249,934
–
252,759
Non-current
78,196
12,884
249,934
83,982
424,996
Other financial assets
–
–
39,243
–
39,243
Derivatives
–
–
–
1,251
1,251
Current
–
–
39,243
1,251
40,494
Total
78,196
12,884
289,177
85,233
465,490
•
Equity instruments
Equity instruments mainly include the Group's 5% shareholding in REN (75,726 thousand euros at 31
December 2024 and 77,728 thousand euros at 31 December 2023), the holding company for the operation
of the electricity transmission assets and a number of items of gas infrastructure in Portugal. The Group
acquired its investment in REN in 2007 for 98,822 thousand euros. In 2017 it participated in REN’s rights
issue, purchasing 6,659,563 new shares for 12,500 thousand euros, so keeping its shareholding at 5%.
At 31 December 2023, REN presented consolidated equity of 1,512,116 thousand euros, having reported a
profit after tax of 149,236 thousand euros that year.
These instruments are classified as financial assets at fair value through other comprehensive income (note
2 b). The value of this investment varies as a function of the investee’s share price performance (Level 1).
The decrease in the fair value of this equity instrument in 2024 was recognised directly against equity.
Specifically, it decreased by 2,002 thousand euros (2023: decrease of 6,338 thousand euros).
Equity instruments measured at fair value through other comprehensive income also include smaller
shareholdings in a number of companies, including in Coreso, S.A., a company with registered office in
Belgium that is owned by the main European TSOs whose core business is helping European transmission
grid operators maintain optimum security of supply in Europe through regional coordination services.
At both reporting dates, this heading also included the investments made by Elewit, S.A.U. in a range of
innovative start-ups, in the amount of 16,153 thousand euros at 31 December 2024 (2023: 10,059 thousand
euros). These investments are recognised at fair value through profit or loss.
In 2024, Elewit increased its investments in Adara Ventures III, S.C.A., Cardumen Fund I, Adara Ventures
Energy I FCRE, Nearby Computing, S.L. and Splight, Inc. by 5,400 thousand euros.
Consolidated financial statements. 2024
60
•
Derivatives
The derivative financial instrument analysis is provided in note 19.
•
Other financial assets
Other non-current financial assets at amortised cost include the financial asset recognised following
application of IFRIC 12 Service concession arrangements in respect of the non-current balance pending
invoice and collection from the grantor (the Gran Canary Island water board) in relation to the 200-MW
pumped storage hydropower facility in Salto de Chira in Gran Canary Island in the amount of 266,084
thousand euros at year-end 2024 (2023: 172,478 thousand euros). Following the publication of the
ministerial order approving the period and methodology for calculating remuneration (note 3), this project
was classified as a service concession arrangement, and the financial model was applied.
Other financial assets at amortised cost also include the credit facility extended by Reintel to its non-
controlling shareholder, Rudolph Bidco, S.à.r.l. The size of that facility is 72,500 thousand euros and it was
drawn down by 41,034 thousand euros at 31 December 2024 (2023: 37,691 thousand euros). This heading
also includes the loan extended to the equity-accounted investee, TEN, in the amount of 16,118 thousand
euros (2023: 13,938 thousand euros). The first loan accrues interest at EURIBOR plus a spread of 471
basis points and the second, at LIBOR plus a spread of 270 basis points. Lastly, this heading includes
security deposits provided and loans extended by Redeia to members of its staff that mature in the long
term. There are no significant differences between the fair value and carrying amount of these assets at 31
December 2024 or 31 December 2023.
Other financial assets at fair value through profit and loss include the Group’s 1,543 thousand euros (2023:
2,825 thousand euros) of investments in economic interest groupings (EIGs) which lease assets that are
managed by another company that is unrelated to Redeia, which retains substantially all the risks and
rewards associated with the assets, with the Group simply availing itself of the tax incentives provided for in
Spanish legislation. The Group recognises the difference between the tax losses that are generated and
declared by the economic interest groupings and its investments in them as finance income (note 23 e).
•
Fair value hierarchy levels
The following table classifies the Group’s financial assets carried at fair value as a function of the level of
inputs used to calculate their fair value at 31 December 2024 and 2023:
31 Dec. 2024
Thousands of euros
Level 1:
Level 2:
Level 3:
Total
Equity instruments
75,726
–
16,621
92,347
Derivatives
–
41,178
–
41,178
Other financial assets
–
1,543
–
1,543
31 Dec. 2023
Thousands of euros
Level 1:
Level 2:
Level 3:
Total
Equity instruments
77,728
–
10,527
88,255
Derivatives
–
85,233
–
85,233
Other financial assets
–
2,825
–
2,825
The equity instruments classified as valued using Level 1 inputs are the shares comprising the Group’s 5%
interest in REN. The Level 3 investments are mainly those made by Elewit in investment funds and start-ups
focused on innovation.
The other financial assets classified in Level 2 are the investments in economic interest groupings.
Consolidated financial statements. 2024
61
b)
Financial liabilities
The breakdown of the Group’s current and non-current financial liabilities at 31 December 2024 and 2023:
31 Dec. 2024
Thousands of euros
Financial liabilities
Hedging derivatives
Total
Bank borrowings
1,427,753
–
1,427,753
Notes and other marketable securities
3,703,609
–
3,703,609
Derivatives
–
10,824
10,824
Other financial liabilities
11,823
–
11,823
Non-current
5,143,185
10,824
5,154,009
Bank borrowings
151,501
–
151,501
Notes and other marketable securities
1,118,449
–
1,118,449
Derivatives
–
–
–
Other financial liabilities
589,222
–
589,222
Current
1,859,172
–
1,859,172
Total
7,002,357
10,824
7,013,181
31 Dec. 2023
Thousands of euros
Financial liabilities
Hedging derivatives
Total
Bank borrowings
1,442,356
—
1,442,356
Notes and other marketable securities
3,724,409
—
3,724,409
Derivatives
—
14,958
14,958
Other financial liabilities
78,211
—
78,211
Non-current
5,244,976
14,958
5,259,934
Bank borrowings
515,755
—
515,755
Notes and other marketable securities
52,222
—
52,222
Derivatives
—
2,488
2,488
Other financial liabilities
830,644
—
830,644
Current
1,398,621
2,488
1,401,109
Total
6,643,597
17,446
6,661,043
•
Bank borrowings, notes and other marketable securities
The carrying amount and fair value of bank borrowings and notes and other marketable securities at 31
December 2024 and 2023, excluding outstanding interest, are shown below:
Carrying amount
Fair value
Thousands of euros
2024
2023
2024
2023
Issues in euros
4,362,331
3,357,027
4,111,081
3,103,694
Issues in US dollars
390,782
373,352
421,808
367,220
Bank borrowings in euros
1,114,752
1,457,144
1,019,227
1,379,014
Bank borrowings in other currencies
451,332
483,639
450,978
485,217
Total
6,319,197
5,671,162
6,003,094
5,335,145
The fair value of the Group’s bank borrowings and issues was estimated using a valuation technique based
on discounting the securities’ future cash flows at the rate of interest prevailing at each measurement date
(Level 2).
At 31 December 2024, the interest accrued and outstanding on these borrowings amounted to 58,990
thousand euros (2023: 40,455 thousand euros). It also included interest outstanding on other equity
instruments in the amount of 23,125 thousand euros (2023: 23,215 thousand euros).
Issues in euros at 31 December 2024 include the eurobonds issued by Red Eléctrica Financiaciones, S.A.U.
and Redeia Corporación, S.A. in the amount of 4,362,331 thousand euros (2023: 3,357,027 thousand
euros). In 2024, Red Eléctrica Financiaciones, S.A.U. issued 500 million euros of green notes on the
euromarket. The notes are secured by Redeia Corporación, S.A. and Red Eléctrica de España, S.A.U.
Redeia Corporación S.A. also issued 500 million euros of green notes on the euromarket in 2024. The
proceeds from both issues will be used to finance and/or refinance eligible projects under the umbrella of
the Group’s green finance framework.
Consolidated financial statements. 2024
62
Issues in US dollars at 31 December 2024 amounted to 390,782 thousand euros (2023: 373,352 thousand
euros) and include Redeia Financiaciones, S.L.U.’s USD 500 million private placement in the US, on which
USD 250 million was pending payment at year-end 2024 (240,639 thousand euros); and three issues in US
dollars undertaken in Peru by Sociedades Red Eléctrica del Sur, S.A.C., Transmisora Eléctrica del Sur,
S.A.C., and Concesionaria Línea de Transmisión CCNCM, S.A.C. on which the balance outstanding stood
at USD 156 million, equivalent to 150 million euros (2023: 147 million euros) (for an analysis of the related
currency risk, refer to note 17).
Bank borrowings in euros at year-end 2024 include non-current loans and credit facilities in the amount of
1,114,752 thousand euros (2023: 1,457,144 thousand euros).
Bank borrowings in other currencies at year-end 2024 include non-current loans and credit facilities, mainly
denominated in US dollars, in the amount of 451,332 thousand euros (2023: 483,639 thousand euros).
The maturity schedule for issues and bank borrowings at 31 December 2024 was as follows:
Maturities at 31 December 2024
Thousands of euros
2025
2026
2027
2028
2029
Beyond
Amortised
cost and
other
adjustments
Total
Issues in euros
900,000 500,000 675,000
700,000
15,000
1,600,000
(27,669)
4,362,331
Issues in US dollars
151,382
7,494
8,017
8,548
9,156
209,761
(3,577)
390,782
Bank borrowings in euros
79,993
74,993
63,882
380,549
95,644
421,190
(1,499)
1,114,752
Bank borrowings in US
dollars
58,540 196,361
3,204
20,838 110,911
63,893
(2,415)
451,332
Total
1,189,915 778,848 750,103 1,109,935 230,711
2,294,844
(35,160)
6,319,197
Maturities at 31 December 2023
Thousands of euros
2024
2025
2026
2027
2028
Beyond
Amortised
cost and
other
adjustments
Total
Issues in euros
— 900,000 500,000
675,000 700,000
615,000
(32,973)
3,357,027
Issues in US dollars
6,141 130,138
19,234
7,538
8,037
205,822
(3,558)
373,352
Bank borrowings in euros
324,116 124,121
97,860
79,112 395,779
440,524
(4,368)
1,457,144
Bank borrowings in US
dollars
177,128
34,521 185,919
7,796
7,931
81,738
(11,394)
483,639
Total
507,385 1,188,780 803,013
769,446 1,111,747
1,343,084
(52,293)
5,671,162
The average rate of interest on bank borrowings and issues was 2.27% in 2024 (2023: 2.14%).
At 31 December 2024, the Group companies had undrawn credit lines totalling 2,014 million euros (2023:
1,676 million euros), of which 1,859 million euros were non-current (2023: 1,383 million euros) and 155
million euros were current (2023: 293 million euros).
The breakdown of the Company’s notes and other marketable securities at 31 December 2024 and 2023:
31 Dec. 2024
Thousands of euros
Balance
outstanding at
31 Dec. 2023
(+) Issues
(-) Repurchases
or redemptions
(+/-)
Exchange
rate and
other
adjustments
Balance
outstanding
at 31 Dec.
2024
Debt securities issued in a fixed-income market
requiring the registration of a prospectus
3,357,027
1,000,000
—
5,304 4,362,331
Debt securities issued in a fixed-income market not
requiring the registration of a prospectus
—
—
—
—
—
Other debt securities issued outside an EU member
state
373,352
—
(6,786)
24,216
390,782
Total
3,730,379
1,000,000
(6,786)
29,520 4,753,113
Consolidated financial statements. 2024
63
31 Dec. 2023
Thousands of euros
Balance
outstanding at
31 Dec. 2022
(+) Issues
(-) Repurchases
or redemptions
(+/-)
Exchange
rate and
other
adjustments
Balance
outstanding
at 31 Dec.
2023
Debt securities issued in a fixed-income market
requiring the registration of a prospectus
3,641,742
—
(300,000)
15,285 3,357,027
Debt securities issued in a fixed-income market not
requiring the registration of a prospectus
—
—
—
—
—
Other debt securities issued outside an EU member
state
392,747
—
(5,889)
(13,506)
373,352
Total
4,034,489
—
(305,889)
1,779 3,730,379
The movement in the outstanding balance of debt securities issued in a market requiring the registration of a
prospectus related to issues registered in Luxembourg in both years.
The table below presents the changes in liabilities arising from financing activities in 2024 and 2023
distinguishing between those arising from cash flows and those not arising from cash flows:
31 Dec. 2023 Arising from
cash flows
Not arising from cash
flows
31 Dec. 2024
Transfers
to/of non-
current
assets held
for sale and
discontinue
d operations
31 Dec. 2024
Thousands of euros
Changes in
foreign
exchange
rates
Other
changes
Issues in euros
3,357,027 1,000,000
—
5,304 4,362,331
4,362,331
Issues in US dollars
373,352
(6,786)
23,751
465
390,782
390,782
Bank borrowings in euros
1,457,143
(202,078)
—
143 1,255,208
(140,456) 1,114,752
Bank borrowings in other
currencies
483,640
(8,178)
33,349
2,534
511,345
(60,013)
451,332
Total borrowings
5,671,162
782,958
57,100
8,446 6,519,666
(200,469) 6,319,197
31 Dec. 2022
Arising from
cash flows
Not arising from cash flows
31 Dec. 2023
Thousands of euros
Changes in foreign
exchange rates
Other changes
Issues in euros
3,641,742
(300,000)
—
15,285
3,357,027
Issues in US dollars
392,747
(5,889)
(13,657)
151
373,352
Bank borrowings in euros
1,616,541
(160,229)
—
831
1,457,143
Bank borrowings in other currencies
521,101
(15,539)
(21,596)
(326)
483,640
Total borrowings
6,172,131
(481,657)
(35,253)
15,941
5,671,162
•
Derivatives
The derivative financial instrument analysis is provided in note 19.
•
Other financial liabilities
The breakdown other financial liabilities at year-end:
Thousands of euros
31 Dec. 2024
31 Dec. 2023
Non-current lease liabilities
9,806
39,263
Payable to fixed-asset suppliers and other borrowings
2,017
38,948
Total non-current
11,823
78,211
Dividend payable (note 13)
108,082
147,249
Current lease liabilities
5,789
21,649
Payable to fixed-asset suppliers
317,808
346,134
Other liabilities
157,543
315,612
Total current
589,222
830,644
Total other financial liabilities
601,045
908,855
Payable to fixed-asset suppliers mainly reflects balances arising on the construction of electricity facilities.
The breakdown of the minimum future lease payments under non-current lease liabilities is provided in note
8.
The Group, in its capacity as lessee, believes it is not potentially exposed to significant future cash outflows
that are not reflected in the above measurement of its lease liabilities.
Consolidated financial statements. 2024
64
Other liabilities mainly reflect certain amounts pending payment to the Spanish electricity system and
security deposits taken.
•
Fair value hierarchy levels
The Group’s non-current and current financial liabilities’ fair values and the level of inputs used to arrive at
those figures are shown below:
31 Dec. 2024
Thousands of euros
Level 1:
Level 2:
Level 3:
Total
Bank borrowings
—
1,566,084
—
1,566,084
Notes and other marketable securities
—
4,753,113
—
4,753,113
Interest and exchange rate derivatives
—
10,824
—
10,824
Total
—
6,330,021
—
6,330,021
31 Dec. 2023
Thousands of euros
Level 1:
Level 2:
Level 3:
Total
Bank borrowings
—
1,940,783
—
1,940,783
Notes and other marketable securities
—
3,730,379
—
3,730,379
Interest and exchange rate derivatives
—
17,446
—
17,446
Total
—
5,688,608
—
5,688,608
The liabilities measured using Level 2 inputs include the Group’s bank borrowings, notes and other issued
securities and its foreign exchange and interest rate derivatives. There are no significant differences
between the fair value and carrying amount of these balances at 31 December 2024 or 2023.
The fair value estimates reflect market participant assumptions based on available market information and
conditions at the date of preparing these financial statements, including as necessary the risk premiums
associated with the prevailing macroeconomic situation. The estimates include own and counterparty credit
risk adjustments. Management additionally considered whether unobservable inputs had become
significant.
19
Derivative financial instruments
Framed by its financial risk management policy, the Group has arranged three types of derivative financial
instruments: interest rate swaps, forward interest rate swaps and cross-currency swaps. Interest rate swaps
consist of exchanging floating-rate borrowings for fixed-rate borrowings, where interest payments are the
future cash flows to be hedged. Forward interest rate swaps hedge the finance cost of highly probable
forecast transactions. Similarly, cross-currency swaps allow fixed- or floating-rate borrowings denominated
in US dollars to be exchanged for fixed--rate borrowings denominated in euros, with scope for hedging
future interest and principal payments in US dollars, future flows at floating rates in euros and the exchange
rate risk arising from highly probable forecast transactions denominated in US dollars.
Application of IFRS 13 (note 4 n) to the measurement of derivative financial instruments and hedging
instruments in these financial statements requires adjusting valuation techniques to obtain the fair value of
the derivative financial instruments. The Group layers in adjustments for credit risk in order to reflect own
credit risk and counterparty credit risk in the estimated fair value of its derivative financial instruments,
calculated using generally accepted valuation models.
To eliminate the credit risk embedded in the cross-currency swaps arranged to hedge the foreign exchange
risk arising from private placements in the US, collateral assignment agreements were entered into with
counterparties in 2015 entailing collateral swaps.
To determine the credit risk adjustment for the remaining derivatives, it uses a technique based on the
calculation, using simulations, of the total expected exposure (which therefore includes current and potential
exposure), adjusted for the probability of default over time and the loss given default assigned to the Group
and each of its counterparties.
Consolidated financial statements. 2024
65
The total expected exposure of derivative financial instruments is obtained using observable market inputs
such as yield, currency and volatility curves, factoring in market conditions at the measurement date.
The inputs used to determine own credit risk and counterparty credit risk (which in turn determine the
probability of default) are mainly based on own credit spreads and the spreads of comparable companies
currently traded on the market (CDS curves, yields on bond issues).
Also, to adjust fair value for credit risk, the Group factors in credit enhancements from guarantees and
collateral when determining the loss given default rate to apply to each position. Loss given default is
considered constant in time. If there are no credit enhancements from guarantees or collateral, a minimum
recovery rate of 40% is modelled.
The Group believes that most of the inputs used to determine the fair value of its derivative financial
instruments are Level 2 inputs (using the hierarchy outlined in note 4), including the data used to calculate
the own and counterparty credit risk adjustments.
In the event it used Level 3 inputs, the Group calculated whether the use of those inputs was significant to
the entire measurement of its derivative financial instruments, concluding that it was not significant. As a
result, the Group has classified the entire derivative financial instruments portfolio within Level 2 of the fair
value hierarchy.
The Group uses mid-market prices (taken from external sources of information widely used in the financial
markets) as observable inputs.
The breakdown of the Group’s hedges at 31 December 2024 and 2023:
2024
Average rate under
derivative
Non-current
Current
Thousands of euros
Notional amount
Maturity
date
Payable
Receivable
Assets
Liabilities
Assets
Liabilities
Interest rate hedge:
- Cash flow hedges:
Interest rate swap
EUR 50,000
thousand
Until 2026
2.40%
3m
EURIBOR
—
(126)
—
—
Interest rate swap
EUR 325,000
thousand
Until 2026
2.70%
1m
EURIBOR
—
(4,297)
—
—
SOFR interest rate swap
USD 50,000
thousand
Until 2026
3.40%
3m Term
SOFR rate
440
—
—
—
- Forward cash flow hedge:
Interest rate swap with deferred
start in 2025
EUR 100,000
thousand
Until 2031
0.20%
6m
EURIBOR
11,373
—
—
—
Foreign exchange hedge:
- Hedge of a net investment:
Cross currency swap
USD 150 million
Until 2026
—
—
—
(6,401)
—
—
Interest and exchange rate hedge
- Cross currency swap:
Interest rate hedge
USD 250,000
thousand
Until 2035
4.12%
EUR
5.35% USD
(4,713)
—
(631)
—
Foreign exchange hedge
13,883
—
20,825
—
Total
20,984
(10,824)
20,194
—
Consolidated financial statements. 2024
66
2023
Average rate under
derivative
Non-current
Current
Thousands of euros
Notional
amount
Maturity date
Payable
Receivable
Assets
Liabilities
Assets
Liabilities
Interest rate hedge:
- Cash flow hedges:
Interest rate swap
EUR 385,746
thousand
Until 2031
2.50%
EURIBOR
+ 0.11%
4,587
(4,603)
166
—
- Forward cash flow hedge:
Interest rate swap with
deferred start in 2024
EUR 200,000
thousand
Until 2030
0.09%
6m
EURIBOR
25,049
—
—
—
Interest rate swap with
deferred start in 2025
EUR 200,000
thousand
Until 2031
0.20%
6m
EURIBOR
21,780
—
—
—
Foreign exchange hedge:
- Hedge of a net investment:
Cross currency swap
USD 150 million
Until 2026
—
—
2,168
—
—
—
- Forward cash flow hedge:
Cross currency swap
USD 46,596
thousand
Until 2031
—
—
—
(3,546)
—
—
Currency forward
USD 195,462
thousand
Until 2032
—
—
8,818
(634)
1,085
(2,488)
Interest and exchange rate hedge:
- Cross currency swap:
Interest rate hedge
USD 250,000
thousand
Until 2035
4.12% EUR 5.35% USD
(2,385)
—
—
—
Foreign exchange hedge
20,313
—
—
—
- Cross currency swap:
Interest rate hedge
USD 73,004
thousand
Until 2031
2.975%
USD
EURIBOR
+ 0.38%
3,652
—
—
—
Foreign exchange hedge
—
(6,175)
—
—
Total
83,982
(14,958)
1,251
(2,488)
The breakdown of the flows expected under the above derivatives as of 31 December 2024 and 2023,
which are similar to their expected impact on earnings, by year of materialisation, is provided below:
Maturities at 31 December 2024
Thousands of euros
Notional
amount
Maturity
date
2025
2026
2027
2028
2029
2030 and
beyond
Total
Interest rate hedge:
- Cash flow hedges:
Interest rate swap
EUR 50,000
thousand
Until 2026
—
(126)
—
—
—
—
(126)
Interest rate swap
EUR 325,000
thousand
Until 2026
—
(4,297)
—
—
—
—
(4,297)
SOFR interest rate swap
USD 50,000
thousand
Until 2026
—
440
—
—
—
—
440
- Forward cash flow hedge:
Interest rate swap with deferred start in
2025
EUR 100,000
thousand
Until 2031
—
—
—
—
—
11,373 11,373
Foreign exchange hedge:
- Hedge of a net investment:
Cross currency swap
USD 150
million
Until 2026
—
(6,401)
—
—
—
—
(6,401)
Interest and exchange rate hedge
- Cross currency swap:
Interest rate hedge
USD 250,000
thousand
Until 2035
(631)
—
—
—
—
(4,713)
(5,344)
Foreign exchange hedge
20,825
—
—
—
—
13,883 34,708
Total
20,194 (10,383)
—
—
—
20,543 30,353
Consolidated financial statements. 2024
67
Maturities at 31 December 2023
Thousands of euros
Notional
amount
Maturity
date
2024
2025
2026
2027
2028
2029 and
beyond
Total
Interest rate hedge:
- Cash flow hedges:
Interest rate swap
EUR 385,746
thousand
Until 2031
166
573 (4,029)
573
573
2,294
150
- Forward cash flow hedge:
Interest rate swap with deferred start in
2024
EUR 200,000
thousand
Until 2030
—
—
—
—
—
25,049
25,049
Interest rate swap with deferred start in
2025
EUR 200,000
thousand
Until 2031
—
—
—
—
—
21,780
21,780
Foreign exchange hedge:
- Hedge of a net investment:
Cross currency swap
USD 150
million
Until 2026
—
—
2,168
—
—
—
2,168
- Forward cash flow hedge:
Cross currency swap
USD 46,596
thousand
Until 2031
— (2,836)
(710)
—
—
—
(3,546)
Currency forward
USD 195,462
thousand
Until 2032 (1,403)
87
1,418
2,106
1,332
3,241
6,781
Interest and exchange rate hedge
- Cross currency swap:
Interest rate hedge
USD 250,000
thousand
Until 2035
— (7,550)
—
—
—
5,165
(2,385)
Foreign exchange hedge
— 14,106
—
—
—
6,207
20,313
- Cross currency swap:
Interest rate hedge
USD 73,004
thousand
Until 2031
—
456
456
456
456
1,828
3,652
Foreign exchange hedge
—
(772)
(772)
(772)
(772)
(3,087)
(6,175)
Total
(1,237)
4,064 (1,469)
2,363
1,589
62,477
67,787
The Group recognised the following amounts in its financial statements in 2024 and 2023 as a result of its
cash flow hedges:
2024
2023
Financial
liabilities at
amortised
cost
Hedging
derivative
s (*)
Investments
accounted for
using the
equity method
Total
Financial
liabilities at
amortised
cost
Hedging
derivatives
(*)
Investments
accounted for
using the
equity method
Total
Gain/(loss) recognised in the consolidated
statement of profit or loss
5,398
4,373
—
9,771
8,917
(8,063)
—
854
Gain/(loss) recognised in the consolidated
statement of other comprehensive income
(20,596)
—
7,123 (13,473)
(14,691)
—
(2,499) (17,190)
Total
(15,198)
4,373
7,123
(3,702)
(5,774)
(8,063)
(2,499) (16,336)
(*) Corresponds to a hedge of the cash flows from a highly probable forecast transaction held by entities belonging to the segment reclassified to
discontinued operations in 2024.
20
Trade and other payables
The breakdown of this consolidated statement of financial position heading at year-end 2024 and 2023:
Thousands of euros
2024
2023
Trade payables
397,250
406,915
Other payables
260,473
251,797
Current tax liabilities
11,187
12,477
Total
668,910
671,189
Consolidated financial statements. 2024
68
Trade payables includes balances due payment for the purchase of goods and services in the ordinary
course of the Group’s business, which are mainly payables derived from repair, maintenance and facility
upgrade work.
This heading also includes current contract liabilities with customers in the amount of 85,925 thousand
euros at 31 December 2024 (2023: 71,361 thousand euros). These liabilities were recognised as advances
collected against works to modify lines for third parties and to build grid access points.
Other accounts payable mainly include items pending reimbursement to customers as a result of the
application of provisional rates generated by the difference between the amount charged and collected and
the income accrued for electricity transmission services between 2021 and 2023 (notes 3 and 23). This
heading also includes the balances payable to the tax authorities with respect to VAT, personal income tax
withholdings and other balances related with the purchase of goods and services.
The Group, specifically Red Eléctrica de España, has reverse factoring agreements with several banks to
facilitate early payment to its suppliers; specifically, eligible suppliers can discount their collection claims
against the Group before maturity, obtaining the amount invoiced less the interest cost charged to discount
them and the fees and commissions applied by the various financial institutions. The Group in turn commits
to pay the bank within a term that matches the maturity of the suppliers’ invoices, in keeping with the terms
and conditions of the agreements. These agreements therefore allow the Group’s suppliers to collect what is
owed to them before the invoice maturity date; they do not alter this company’s payment terms as it
continues to settle on the original maturity date of the supplier’s invoice. For all of the above reasons, these
amounts continue to be recognised as trade payables.
At 31 December 2024, the amount of liabilities related with these supplier trade finance agreements,
recognised under other accounts payable and other current financial liabilities in the tables above,
amounted to 74,865 thousand euros (2023: 66,409 thousand euros) and 109,690 thousand euros (2023:
54,528 thousand euros), respectively. Of the total, Group suppliers had discounted payments against their
invoices totalling 18,622 thousand euros at year-end 2024 (2023: 6,361 thousand euros).
At both reporting dates, the liabilities included under these agreements are settled between 40 and 60 days
from the date of invoice, a term that does not differ from the payment term on trade invoices that are not
included under these agreements, so that use of these instruments does not have a significantly impact on
the entity’s cash flows.
21
Disclosures regarding average supplier payment term. Additional
Provision Three - "Disclosure requirements" under Law 15/2010
One of the objectives of Law 18/2022 of 28 September 2022, on business creation and growth, is to reduce
late payments on trade debt and enhance access to financing.
Among other things, it amends Law 15/2010 of 5 July 2010, which in turn amended Law 3/2004 of 29
December 2004, establishing measures to tackle supplier non-payment, regulating the deadlines for settling
business transactions between companies or between companies and the public sector, specifically in
Additional Provision Three thereof.
The amendments made to Additional Provision Three by Law 18/2022 require:
•
All corporate enterprises to expressly disclose their average supplier payment terms in the notes to their
annual financial statements.
•
Listed companies and unlisted companies that do not present short-form financial statements are
required to publish, in addition to their average payment terms, the monetary value and number of
invoices paid within the legally stipulated deadline and their percentage shares of the corresponding
totals. That information must be included in their financial statement notes and on their corporate
websites if they have one.
Consolidated financial statements. 2024
69
In its official journal no. 132/2022, the ICAC writes that this new legislation expands the disclosures that
corporate enterprises must include in their financial statement notes and on their corporate website, to the
extent they have one.
The disclosures regarding the average payment terms in 2024 and 2023 are provided below:
Days
2024
2023
Average supplier payment term
44
44
Paid transactions ratio
45
45
Outstanding transactions ratio
22
22
Thousands of euros
2024
2023
Total payments made
596,196
539,689
Total payments outstanding
16,937
20,950
Thousands of euros
2024
2023
Monetary amount of invoices paid within the legal deadline
584,122
510,897
Total payments made
596,196
539,689
Monetary amount of invoices paid within the legal deadline as a % of total payments
made
98%
95%
2024
2023
Number of invoices paid within the maximum period stipulated
29,724
29,324
Total number of invoices paid
30,564
31,012
No. of invoices paid within the legal deadline as a % of total invoices paid
97%
95%
22
Tax matters
•
Consolidated Tax Group
The Tax Group headed up by Redeia Corporación has been paying tax under the consolidated tax regime in
Spain since 2002 (Tax Group No. 57/02). In addition to the Parent, at 31 December 2023, the Tax Group
included the following companies: Red Eléctrica, Redinter, Redeia Financiaciones, Red Eléctrica
Financiaciones, Red Eléctrica Infraestructuras en Canarias, Redeia Sistemas de Telecomunicaciones,
Elewit, Hispasat S.A., Hispasat Canarias S.L and Hispamar Exterior, S.L.
Hispasat, S.A. and Hispasat Canarias, S.L.U. joined the Redeia Tax Group with effect from 1 January 2020
and Hispamar Exterior, S.L.U. joined it with effect from 1 January 2022. Hispasat, S.A. was the parent of the
Hispasat tax group until 31 December 2019.
As a result of the merger of Axess Networks Solutions S.L.U. into its parent Hispasat S.A. on 2 July 2024 (a
transaction carried out under the tax neutrality regime set out in Chapter 7 of Title VII on the special regime
for mergers and de-mergers provided for in Law 27/2014 of 27 November 2024 on Corporate Income Tax),
Axess Networks Solutions S.L.U. was extinguished and liquidated and accordingly exited the Redeia Tax
Group.
Axess Networks Solutions Arabia Saudita, S.L. also left the Redeia Tax Group in 2024 having been
liquidated that year.
The Group companies that are not part of the Tax Group apply the tax legislation applicable in their
countries of domicile.
Consolidated financial statements. 2024
70
•
Income tax expense and effective tax rate
The reconciliation of the statutory tax rate in force in Spain and the Group's effective tax rate is as follows:
Thousands of euros
2024
2023*
Accounting profit before tax
675,633
885,207
Permanent differences and consolidation adjustments
(63,820)
(140,915)
Taxable profit
611,813
744,292
Tax rate
25%
25%
Tax expense at statutory rate
152,953
186,073
Effect of application of different tax rates
(1,212)
1,562
Income tax calculated at the rates prevailing in each country
151,741
187,635
Tax credits utilised and other adjustments
(2,950)
7,437
Income tax
148,791
195,072
Current income tax
207,871
206,329
Deferred income tax
(59,080)
(11,257)
Effective tax rate
22.02%
22.04%
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
The effective tax rate is shaped primarily by permanent differences and tax credits. The effective rate in
2024 was 22.02% (2023: 22.04%).
The permanent differences in 2024 and 2023 related mainly to investment management expenses
associated with the dividends collected from subsidiaries (article 21 of Law 27/2014 on Corporate Income
Tax) and the adjustment for the capitalisation reserve derived from the increase in equity, as contemplated in
article 25 of Law 27/2014.
The capitalisation reserve endowment for 2024 will be made at Red Eléctrica de España, S.A.U., in
accordance with article 62.1 d) of Law 27/2014 (note 13).
The consolidation adjustments in both 2024 and 2023 stem mainly from the Group’s share of earnings of
several equity-accounted investees which do not compute as taxable at the consolidated level.
Tax credits utilised and other adjustments mainly reflect tax relief related with research, development and
innovation expenditure, exemption arrangements aimed at avoiding double taxation and donations.
Note that the tax relief received in exchange for investments in fixed assets in the Canary Islands is
accounted for as a grant which is released to profit or loss over the years of useful life of the assets for
which this relief is provided (note 4.j).
6,151 thousand euros of tax relief accounted for as a grant was reclassified to profit or loss in 2024 (2023:
5,890 thousand euros) and the amount pending reclassification at 31 December 2024 stood at 148,993
thousand euros (2023: 139,586 thousand euros).
The Redeia Group's current tax expense is not affected by the Pillar Two global minimum tax rules.
Additionally, the Group is availing itself of the exception regarding the recognition of deferred tax effects
derived from implementation of Spanish Law 7/2024, as allowed in IAS 12.
Consolidated financial statements. 2024
71
•
Deferred tax
The movements in deferred tax assets and deferred tax liabilities:
2024
2023
Thousands of euros
Transfers to/of
non-current
assets held for
sale and
discontinued
operations
Statement of
profit or loss,
business
combinations
and other
Income and
expense
recognised
directly in equity
Total
Statement of
profit or loss
Income and
expense
recognised
directly in
equity
Total
Deferred tax assets:
Originated in prior years
114,789
29,457 144,246
122,516
29,457 151,973
Business combinations
—
—
—
—
—
—
Movements during the year
(72,779)
26,140
— (46,639)
(7,727)
— (7,727)
Total deferred tax assets,
gross
(72,779)
140,929
29,457 97,607
114,789
29,457 144,246
Offset of deferred taxes from the Tax Group in Spain
(66,670)
(97,993)
Total deferred tax assets, net
30,937
46,253
Deferred tax liabilities:
Originated in prior years
459,098
17,428 476,526
484,141
16,265 500,406
Business combinations
—
—
—
—
—
—
Movements during the year
(15,450)
(32,940)
1,610 (46,780)
(25,043)
1,163 (23,880)
Total deferred tax liabilities,
gross
(15,450)
435,472
19,038 429,746
459,098
17,428 476,526
Offset of deferred taxes from the Tax Group in Spain
(66,670)
(97,993)
Total deferred tax liabilities, net
363,076
378,533
The breakdown of deferred tax assets and deferred tax liabilities at year-end:
Thousands of euros
2024
2023
Restatement of assets (Spanish Law 16/2012)
17,222
18,099
Limit on deductibility of depreciation (Spanish Law 16/12)
3,283
6,796
Asset impairment
383
23,406
Commitments with employees
22,787
22,527
Derivatives
1,855
2,462
Unused tax credits
—
23,281
Unused tax losses
45,230
31,972
Other
6,847
15,703
Offset of deferred tax assets and liabilities
(66,670)
(97,993)
Total deferred tax assets
30,937
46,253
Accelerated depreciation
397,748
417,130
Non-deductible assets
8,282
20,947
Other
23,715
38,449
Offset of deferred tax assets and liabilities
(66,670)
(97,993)
Total deferred tax liabilities
363,076
378,533
Deferred tax assets feature reversals of taxes that were prepaid in 2013 and 2014 as a result of application
of the limit on the deduction of depreciation charges under article 7 of Law 16/2012 of 27 December 2012,
introducing a range of tax measures designed to consolidate Spain's public finances and shore up economic
activity, and as a result of the start in 2015 of depreciation for tax purposes of the net increase in value
resulting from the asset revaluation exercise undertaken at 31 December 2012, as stipulated in article 9 of
that same piece of legislation. This heading also includes, principally, amounts related with long-term
employee benefit obligations, changes in the fair value of cash flow hedges and unused tax losses.
The deferred tax liabilities derive from the free and accelerated depreciation of certain assets and the
inclusion of the assets and liabilities of REDALTA and INALTA, which were taken over and absorbed by
Redeia Corporación, S.A. in 2006. In 2024, deferred tax liabilities due to accelerated depreciation, as
provided for in additional provision eleven of Royal Legislative Decree 4/2004 and transitional provision
thirty-four of Spain's Corporate Income Tax Law 27/2014, amounted to 342,106 miles thousand euros (2023:
359,868 thousand euros).
Consolidated financial statements. 2024
72
In its consolidated statement of financial position, the Group has offset 66,670 thousand euros of deferred
tax assets derived from its Tax Group in Spain (2023: 97,993 thousand euros) against deferred tax liabilities,
as provided for in IAS 12.
At 31 December 2024, deferred tax assets and liabilities are expected to be recovered and settled as
follows:
More than 1
year
Less than 1
year
Adjustment for
offset of assets
and liabilities
Net total
Deferred tax assets
92,824
4,783
(66,670)
30,937
Deferred tax liabilities
409,345
20,401
(66,670)
363,076
The recovery and settlement of the Group's deferred tax assets and liabilities depends on certain
assumptions that are subject to change.
The notes to Redeia Corporación's financial statements for 2006 included the disclosures required under 86
of Law 27/2014 regarding the merger between REDALTA and INALTA and its financial statements for 2008
included the disclosures regarding the contribution by Redeia Corporación of the Company's Spanish grid
TSO business to Red Eléctrica.
Likewise, the notes to the 2015 financial statements of Redeia Corporación and Reintel included the
disclosures required under article 86 of Law 27/2014 regarding the spin-off and contribution of the
telecommunications business of Redinter to Reintel and the notes to the 2015 financial statements of
Redeia Corporación and Redinter included the corresponding disclosures for the non-monetary contribution
of the shares in REN.
•
Years open to inspection
In accordance with prevailing tax legislation, tax returns cannot be considered final until they have been
inspected by the tax authorities or until the applicable inspection period has elapsed.
In 2022, the authorities initiated general inspection proceedings with respect to corporate income tax
(consolidated tax regime) covering 2017 to 2020. In 2023, the Group received notice of the expansion of the
partial proceedings to 2021 and to 2015 - 2019 in the case of Hispasat S.A. and Hispasat Canarias, S.L.
In 2023, the Group signed uncontested assessments implying tax payable of 2,739 thousand euros and
assessments which it is challenging that imply tax payable of 35,929 thousand euros; no fines were
imposed.
In 2024, the Group received settlement agreements in response to the pleas presented against the
assessments challenged. The amount payable under those agreements has been reduced to 34,316
thousand euros, of which 33,727 thousand euros have been appealed before the National Economic-
Administrative Court.
The settlement agreements derived from the assessments being challenged relate to the authorities’
understanding that the adjustment of taxable income under article 31.2 of the Income Tax Act is not
applicable and that the IT expenses deducted, related to the costs incurred by Hispasat Canarias, S.L.U. to
manufacture the Amazonas Nexus, are not deductible for tax purposes.
The Group, based on the opinion of its tax advisors, expects the outcome of the positions questioned in the
wake of the inspections to be favourable to its interests and that the probability that a higher court of
instance will hand down a favourable ruling is at least 50%, to which end it has not recognised any
provisions in connection with these matters.
In Spain, the Group remains party to certain ongoing court proceedings related with its income tax from
2011 and 2016.
The Tax Group has also requested the rectification of the tax paid in instalments between 2016 and 2022. In
2020, the tax authorities ruled in favour of the rectification requested in respect of 2016 and 2017 and the
decision regarding the other years requested has been appealed.
In accordance with prevailing tax legislation, the tax returns presented for the various different taxes cannot
be considered final until they have been inspected by the tax authorities or until the applicable inspection
period has elapsed (four years in the case of the Spanish companies).
Consolidated financial statements. 2024
73
Since existing tax law and regulations are subject to interpretation, tax inspections initiated in the future for
years open to inspection could give rise to tax liabilities that are currently not possible to quantify objectively.
However, the Group estimates that any liabilities that could arise as a result of any such inspections would
not have a material impact on its future earnings.
23
Income and expenses
a)
Revenue
The breakdown of revenue in 2024 and 2023 by geography is provided below:
Thousands of euros
2024
2023*
Spain
1,483,655
1,717,749
International
110,549
101,042
a) European Union
27,100
26,764
a.1) Eurozone
27,100
26,764
a.2) Non-eurozone
—
—
b) Other countries
83,449
74,278
Total
1,594,204
1,818,791
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Spain in the table above mainly includes regulated revenue (note 3) from the provision of electricity
transmission and system operation services. The CNMC sets the remuneration for these services through
Circulars establishing the methods and parameters for calculating the remuneration of the transmission
activity based on the costs required to build, operate and maintain the electricity facilities, as well as the
remuneration for the system operator, in exercising the authority conferred on the Commission in Royal
Decree-Law 1/2019 (note 3.a).
Revenue from the transmission activity in Spain in 2024 and 2023 was accrued primarily on basis of Red
Eléctrica’s calculations in accordance with prevailing regulations, since the CNMC has yet to publish the
definitive remuneration for 2022 to 2024 (note 3.a). The revenue recognised from the transmission activity in
Spain amounted to 1,277 million euros in 2024 (2023: 1,520 million euros).
Moreover, as the latest annual tariff order settled by the CNMC relates to 2021, the statement of financial
position reflects a liability for the estimated amount to be reimbursed to the system for the difference
between the amount settled provisionally and the revenue accrued from 2022 to 2024 (note 20).
Meanwhile, for system operation, revenue for 2024 and 2023 was accrued in accordance with CNMC
Circular 4/2019, which establishes the system operator’s remuneration for 2021 and beyond. Based on the
experience gained, the methodology was updated via the publication of CNMC Circular 1/2023 of 7
February 2023.
Revenue for 2014 to 2019, which is provisional, was accrued based on the best estimate using the specific
remuneration methodology for each activity. At year-end 2024, as described in note 3.a, approval of the
definitive remuneration for those years was still pending.
The Group does not expect the revenue resulting from the final decisions in these processes to differ
materially from the estimated revenue recognised.
International revenue generated in the European Union in 2024 and 2023 includes revenue from
reinsurance services and in other countries it mainly includes revenue from the provision of transmission
services by the Group's Peruvian and Chilean companies.
b)
Other operating income
This heading includes revenue recognised using the stage-of-completion method from the construction of
the 200-MW pumped-storage hydropower station in Salto de Chira, as well as the finance income
recognised using the effective interest rate method on the financial asset, which in 2024 amounted to 93,905
thousand euros (2023: 57,846 thousand euros) (note 18.a).
Consolidated financial statements. 2024
74
In both reporting periods, it also includes non-trading and other operating income, which primarily stemmed
from insurance claims settled by insurance companies in relation to covered damage, breakdowns and
claims.
c)
Cost of sales and other external expenses
The breakdown of this heading in 2024 and 2023 was as follows:
Thousands of euros
2024
2023*
Cost of sales
24,512
38,589
Other operating expenses
401,259
403,784
Total
425,771
442,373
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Cost of sales and other external expenses mainly include the expenses derived from the maintenance,
repair and conservation of the Group’s facilities, in addition to expenses associated with IT services,
advisory services, leases and other services. It also includes 82 million euros of costs associated with 200-
MW pumped-storage hydropower station in Salto de Chiro (2023: 50 million euros) (note 23.b).
d)
Employee benefits expense
The breakdown of this consolidated statement of profit or loss heading in 2024 and 2023:
Thousands of euros
2024
2023*
Wages, salaries and other remuneration
138,857
137,944
Social security
33,241
31,479
Contributions to pension funds and similar obligations
2,790
2,610
Other items and employee benefits
5,669
5,969
Total
180,557
178,002
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Wages, salaries and other remuneration includes employee remuneration, termination benefits and the
accrual of deferred remuneration. Note that this heading also includes director remuneration.
The Group companies capitalised staff costs (notes 6 and 7) totalling 55,162 thousand euros in 2024 (2023:
49,768 thousand euros) related with self-constructed assets.
•
Headcount
The average number of Group employees, including at discontinued operations, in 2024 and 2023 by
employee category is as follows:
2024
2023
Management team
163
161
Senior technicians and middle managers
787
774
Technicians
951
917
Specialists and administrative staff
570
595
Total
2,471
2,447
Headcount at year-end, including discontinued operations, by gender and employee category:
2024
2023
Men
Women
Total
Men
Women
Total
Management team
105
62
167
104
59
163
Senior technicians and middle managers
531
294
825
512
289
801
Technicians
736
194
930
737
191
928
Specialists and administrative staff
396
171
567
409
176
585
Total
1,768
721
2,489
1,762
715
2,477
Consolidated financial statements. 2024
75
The average number of employees with a disability of a severity of 33% or higher by gender and employee
category in 2024 and 2023:
2024
2023
Men
Women
Total
Men
Women
Total
Management team
—
—
—
—
—
—
Senior technicians and middle managers
7
4
11
6
3
9
Technicians
9
1
10
8
1
9
Specialists and administrative staff
4
2
6
3
3
6
Total
20
7
27
17
7
24
Not included in the Group headcount figures above, the Parent’s Board of Directors consisted of 12
members, six men and six women, at both year-ends.
e)
Finance income and costs
Finance income in 2024 was generated primarily by term deposits and current and other accounts (46,797
thousand euros in 2024 and 22,925 thousand euros in 2023), investments in EIGs (5,308 thousand euros in
2024 and 4,784 thousand euros in 2023) (notes 18 and 22) and interest on loans extended to TEN (note 24)
(1,345 thousand euros in 2024 and 1,195 thousand euros in 2023).
It also includes the dividends collected on the Group’s 5% shareholding in REN in the amount of 5,137
thousand euros (2023: 5,137 thousand euros).
Finance costs mainly reflect interest expense, net of capitalised borrowing costs, on borrowings, notes and
other marketable securities, in the amount of 159,335 thousand euros (note 18) (2023: 135,155 thousand
euros).
In 2024, the Group capitalised 15,763 thousand euros of borrowing costs (notes 6 and 7) (2023: 16,197
thousand euros).
24
Transactions with equity-accounted investees and related parties
a)
Transactions with equity-accounted investees and year-end balances
The transactions were performed with TEN and Hisdesat. They were all arranged on an arm’s length basis.
The main transactions carried out between Group companies and TEN and Hisdesat in 2024 and 2023 and
the resulting year-end balances were as follows:
2024
2023
Balances
Transactions (*)
Balances
Transactions (*)
Thousands of euros
Receivable
Payable
Expenses
Revenue
Receivable
Payable
Expenses
Revenue
Transmisora
Eléctrica del Norte
S.A. (TEN)
16,749
(630)
(208)
1,345
14,528
102
(293)
1,195
Hisdesat Servicios
Estratégicos, S.A.(*)
–
–
–
2,394
–
–
–
2,271
Total
16,749
(630)
(208)
3,739
14,528
102
(293)
3,466
(*) These transactions are included under profit/(loss) after tax for the year from discontinued operations in the accompanying
consolidated statement of profit or loss.
Consolidated financial statements. 2024
76
b)
Related party transactions
The transactions completed with related parties, which were carried out at arm’s length, are disclosed
below:
2024
Thousands of euros
Group companies
Other related parties
Total
Expenses and income:
Leases
—
—
—
Other expenses
208
39,081
39,289
Expenses
208
39,081
39,289
Provision of services
2,394
27,858
30,252
Finance income
1,345
—
1,345
Revenue
3,739
27,858
31,597
Other transactions:
Financing agreements: loans and capital contributions
(lender)
16,118
—
16,118
Other transactions
—
—
—
Other transactions
16,118
—
16,118
The transactions with Group companies are those performed with TEN and Hisdesat, as already detailed in
section a) above. The balance recognised under financing agreements: loans and capital contributions
(lender) corresponds to the credit facility extended to TEN (note 18), whose maximum drawdown in 2024
and 2023 was 16,745 thousand dollars.
Other related party transactions includes transactions performed with public sector entities, mainly
transactions between ADIF, which provides fibre optic network maintenance services, and Group company,
Reintel. It also reflects transactions between Indra Sistemas group companies and Redeia companies.
There were no transactions involving directors or key management personnel in 2024 or 2023.
25
Director remuneration
The Director Remuneration Policy for Redeia Corporación, S.A. for 2022 - 2024 was approved at the Annual
General Meeting held on 29 June 2021 (the former policy was approved in 2019 and covered 2019 to 2021).
At the Annual General Meeting held on 4 June 2024, and as stipulated in the Company’s bylaws, the
Parent’s shareholders ratified the motion presented by the Board of Directors for the approval of the Annual
Report on Director Remuneration, which included, among other matters, the proposal for director
remuneration in 2024.
The remuneration approved, which covers the members of the Board of Directors, the Chairwoman and the
CEO, is unchanged from 2023.
The Chairwoman, in her capacity as non-executive chair, receives a fixed annual sum in addition to
remuneration for her membership of the Board of Directors. She only receives fixed remuneration, i.e., she
has not been allocated any variable remuneration (neither an annual bonus nor participation in long-term
incentive schemes) and she is not entitled to any termination benefits.
The CEO, on the other hand, receives fixed and variable remuneration (an annual bonus and participation in
a long-term incentive scheme) for the performance of his executive duties, and a fixed amount in his
capacity as member of the Board of Directors. He also receives certain benefits. Some of both components
of his variable remuneration is settled via the delivery of Company shares.
In addition, the CEO is a beneficiary of a defined contribution pension scheme, covering retirement, death
and permanent disability. Redeia Corporación, S.A.’s obligation under this scheme is limited to making an
annual contribution equivalent to 20% of the CEO’s fixed compensation for his performance of executive
duties.
Consolidated financial statements. 2024
77
The CEO’s annual variable remuneration is framed by predetermined and quantifiable objective criteria and
targets established by the Parent's Appointments and Remuneration Committee at the start of each year.
The targets are aligned with the strategies and initiatives laid down in the Group’s Strategic Plan and their
delivery is assessed by that same committee.
The CEO also participates in the Long-Term Incentive Plan (LTIP) for Promoting the Energy Transition,
Reducing the Digital Divide and Boosting Diversification. That Plan’s targets are likewise associated with
those set out in the Group’s Strategic Plan and are aligned with the key aspects of the Director
Remuneration Policy. The LTIP has a duration of six years and will end on 31 December 2025.
Under the Director Remuneration Policy, the CEO’s contract, in line with generally accepted market practice,
includes a termination benefit equivalent to one year's remuneration in the event his contract is terminated
by the Company or as a result of a change of control.
Likewise in line with market practices in these cases, following his appointment as CEO, his previous
employment contract was suspended. In the event of his termination, he would accrue, for severance
purposes, the remuneration in force at the date of suspension, taking into consideration his length of service
at the Group up until his appointment as CEO (15 years) plus the period during which he provides his
services, if any, following his discontinuation as CEO, all of which in keeping with prevailing labour
legislation.
As for the members of the Board of Directors, their remuneration consists of a fixed annual payment,
remuneration for attending board meetings, remuneration for membership of the board committees, as the
case may be, and specific annual remuneration for the chairs of those committees and for the position of
lead independent director. These remuneration concepts and the related amounts have not changed in
2024.
Lastly, the directors are compensated or reimbursed for reasonable and duly justified expenses incurred in
order to attend the meetings and perform other tasks directly related with their director duties, such as
travel, accommodation and meals.
The breakdown of the remuneration accrued by the members of the Parent’s Board of Directors in 2024 and
2023 is provided below:
Thousands of euros
2024
2023
Total remuneration in their capacity as directors
2,504
2,503
Remuneration of certain directors in their capacity as executives (1)
743
743
Total
3,247
3,246
(1) Includes the fixed remuneration and the annual variable remuneration accrued during the year.
The breakdown of director remuneration by class of director:
Thousands of euros
2024
2023
Executive directors
890
890
Proprietary directors
525
525
Independent external directors
1,286
1,285
Other external directors
546
546
Total director remuneration
3,247
3,246
Consolidated financial statements. 2024
78
The breakdown by item and individual director of the remuneration accrued by the members of the
Company’s Board of Directors in 2024 and 2023 is provided below:
Thousands of euros
Fixed
remunerati
on
Variable
remunerati
on
Board
meeting
attendance
fees
Committee
membershi
p
Board
committee
chairs
Lead
Independent
Director
Other
remuneration
(4)
Total
2024
Total
2023
Beatriz Corredor Sierra
530
–
16
–
–
–
–
546
546
Roberto García Merino
481
263
16
–
–
–
130
890
890
Mercedes Real Rodrigálvarez (1)
131
–
16
28
–
–
–
175
175
Ricardo García Herrera
131
–
16
28
–
–
–
175
175
Esther María Rituerto Martínez
131
–
16
28
–
–
–
175
175
Socorro Fernández Larrea
131
–
16
28
15
–
–
190
190
Antonio Gómez Ciria
131
–
16
28
15
–
–
190
190
José Juan Ruiz Gómez
131
–
16
28
–
–
–
175
175
Marcos Vaquer Caballería
131
–
16
28
8
8
–
191
175
Elisenda Malaret García
131
–
16
28
–
–
–
175
175
José María Abad Hernández
131
–
16
28
–
–
–
175
175
Guadalupe de la Mata Muñoz (2)
75
–
9
16
–
–
–
100
–
Carmen Gómez de Barreda Tous de
Monsalve (3)
56
–
8
12
7
7
–
90
205
Total remuneration accrued
2,321
263
193
280
45
15
130 3,247 3,246
(1) Amounts received by SEPI.
(2) New director appointed at the Annual General Meeting of 4 June 2024.
(3) Stepped down as director with effect from the Annual General Meeting of 4 June 2024.
(4) Includes the costs derived from the company benefits included in the CEO’s pay package.
The Group did not recognise any loans, advances or guarantees extended to the members of the Parent’s
Board of Directors on its consolidated statement of financial position at either 31 December 2024 or 31
December 2023. Not did it have any pension or life insurance obligations, other than as outlined above, on
their behalf at either reporting date.
The Group had arranged director and officer liability insurance at both reporting dates. Those policies cover
the directors and executives of the various Group companies. The annual cost of the related premiums,
including tax, was 460 thousand euros in 2024 (2023: 536 thousand euros). These premiums are calculated
based the nature of the Group’s activities and as a function of its financial metrics, so that it is not feasible to
apportion them between the directors and key management personnel or to allocate them to each individual.
The members of the Board of Directors did not perform any transactions with the Parent or its Group
companies, either directly or through persons acting on their behalf, outside of the ordinary course of
business or other than on an arm's length basis in either reporting period.
Consolidated financial statements. 2024
79
26
KMP remuneration
The key management personnel who provided services to the Group in 2024 and 2023 and their positions at
year-end are as follows:
Name
Position
María Concepción Sánchez Pérez
Chief Operating Officer
Ángel Luis Mahou Fernández
Managing Director of Transmission
Juan Majada Tortosa
Managing Director of International Business
Mariano Aparicio Bueno
Managing Director of Telecommunications
Emilio Cerezo Diez
Chief Financial Officer
Carlos Méndez-Trelles García
General Secretary and Secretary of the Board of Directors
José Antonio Vernia Peris
Chief Resources Officer
Miryam Aguilar Muñoz
Chief Communications Officer
Eva Pagán Díaz
Chief Sustainability Officer
Silvia María Bruno De La Cruz
Director of Innovation and Technology
Carlos Puente Pérez
Director of Corporate Development
Eva Rodicio González
Director of Internal Audit and Risk Control
Mónica Moraleda Saceda (1)
Director of Legal Services
Julián Díaz-Peñalver Carrasco (1)
Director of Regulation
Laura de Rivera García de Leániz (2)
Director of Regulation and Legal Services
(1) The former Regulation and Legal Services Department was restructured on 27 May 2024 to create two separate departments, the Regulation
Department and the Legal Services Department.
(2) Laura de Rivera García de Leániz presented her resignation from the Group on 18 January 2024.
In 2024, the Group’s key management personnel accrued 3,794 thousand euros of remuneration, which is
recognised under employee benefits expense in the accompanying consolidated statement of profit or loss.
Note that there were organisational changes and changes in the consolidation scope that affected the
number of key management personnel and the composition and members of that team in 2024. On a like-
for-like basis, i.e., only analysing remuneration for the professionals who were part of the Group’s key
management personnel for all of 2023 and 2024, the year-on-year increase in their remuneration narrows to
2.32%.
These amounts include the accrual of variable annual remuneration, on the assumption that the objectives
set each year will be met. After delivery of the corresponding targets has been verified, these bonuses are
paid out in the early months of the following year, adjusted for the definitive delivery metrics.
Of the total remuneration accrued by key management personnel in 2024, 102 thousand euros was
accounted for by contributions to life insurance and pension plans (2023: 73 thousand euros).
The Group had not extended any advances or loans to these executives at either 31 December 2024 or 31
December 2023. The Group had assumed life insurance commitments on behalf of these executives at both
reporting dates; the premiums on those policies cost it approximately 26 thousand euros in 2024 (2023: 21
thousand euros).
The key management personnel also participate in the Long-Term Incentive Plan (LTIP) for Promoting the
Energy Transition, Reducing the Digital Divide and Boosting Diversification. That Plan’s targets are likewise
associated with those set out in the Group’s Strategic Plan and are aligned with the key aspects of the
Director Remuneration Policy. The LTIP has a duration of six years and will end on 31 December 2025.
Note that in order to reinforce the TSO’s independence, the Operations Department of Red Eléctrica de
España, S.A.U. has been assigned a series of specific targets that exclude all aspects unrelated to the
operation of Spain’s electricity system.
The Group’s serving key management personnel do not enjoy any guarantees or golden parachute clauses
in the event of dismissal. In the event of the termination of their employment agreements, their severance
would be calculated in keeping with ordinary labour legislation.
In 2015, the Group implemented a Structural Management Plan that applies to some of its key management
personnel. The beneficiaries of this Plan must comply with certain requirements and their participation can
be modified or revoked by the Group under certain circumstances.
Consolidated financial statements. 2024
80
The Group had arranged director and officer liability insurance at both reporting dates. These policies cover
all of the Group’s key management personnel. The annual cost of the premiums in 2024 amounted to 460
thousand euros, including tax (2023: 536 thousand euros). These premiums are calculated based the nature
of the Group’s activities and as a function of its financial metrics, so that it is not feasible to apportion them
between the key management personnel and directors or to allocate them to each individual.
27
Segment information
Redeia articulates its reportable operating segments around the main lines of business considered by the
Group in its management and decision-making.
At 31 December 2024, Redeia was divided into the following operating segments whose main products,
services and operations are outlined next:
•
Management and operation of national electricity infrastructure:
This segment comprises the Redeia’s main business activity, as the sole transmission and system operator
(TSO) for the Spanish electricity system. Its mission is to guarantee the security and continuity of the
electricity supply at all times and manage high-voltage electricity transmission in Spain.
Redeia engages in the high-voltage transmission of electricity through Red Eléctrica. To this end, it manages
the electricity transmission network infrastructure that connects the power plants to the consumer
distribution points. As transmission network manager, Red Eléctrica is responsible for the development and
expansion of the network, its maintenance, managing the transfer of electricity between island systems and
the mainland, and guaranteeing equal, third-party access to the transmission network.
In addition, Red Eléctrica operates the mainland Spanish electricity system and the non-mainland systems
in the Canary Islands, Balearic Islands, Ceuta and Melilla, guaranteeing the security and continuity of the
electricity supply at all times. Operation of the system encompasses the activities that are necessary to
guarantee security and continuity, as well as proper coordination between the generation system and
transmission network, ensuring that the energy produced by the generators is transmitted to the distribution
networks at the standards of quality required under applicable legislation.
•
Management and operation of international electricity infrastructure:
This segment comprises activities related to international business development, as a source of organic
growth, mainly focused on the construction and operation of electricity transmission networks outside of
Spain, specifically in Peru, Chile and Brazil at 31 December 2024.
•
Telecommunications:
The telecommunications segment comprises the operation of satellite infrastructure in Spain, Portugal and
South America, as well as the lease in Spain of a broad dark fibre backbone network, and technical sites
and spaces for housing customers’ telecommunications equipment.
Redeia also carries out reinsurance activities and fosters innovation in the electricity and
telecommunications sectors. These activities do not meet the quantitative thresholds for presentation as
separate reportable operating segments.
Inter-segment sales prices are established at arm’s length, i.e., at the same price agreed in a comparable
transaction between two unrelated parties.
Consolidated financial statements. 2024
81
Below are the key measures for the operating segments so identified:
Business segments at 31 December 2024
Thousands of euros
Management
and operation
of national
electricity
infrastructure
Management
and operation of
international
electricity
infrastructure
Telecommunications
(fibre optics and satellites)
Other,
corporation &
adjustments
Total
Satellites
Fibre optic
Revenue
1,396,344
83,549
—
148,316
(34,005) 1,594,204
External customers
1,392,570
83,449
—
90,714
27,471 1,594,204
Inter-segment revenue
3,774
100
—
57,602
(61,476)
—
Share of profits of equity-accounted
investees (with comparable
businesses)
—
52,437
—
—
861
53,298
Depreciation and amortisation
(406,164)
(21,797)
—
(24,093)
(9,637)
(461,691)
Impairment of and gains/(losses) on
fixed asset disposals
—
(549)
—
—
200
(349)
Operating profit
581,736
78,615
—
83,467
17,542
761,360
Finance income
42,765
10,840
—
7,690
(1,307)
59,988
Finance costs
(110,746)
(48,811)
—
(12,431)
28,416
(143,572)
Income tax
(115,741)
4,486
—
(19,754)
(17,782)
(148,791)
Profit after tax from continuing
operations attributable to equity
holders of the parent
397,995
43,880
—
30,075
26,810
498,760
Profit after tax from discontinued
operations attributable to equity
holders of the parent
—
—
(130,322)
—
—
(130,322)
Profit for the year attributable to
equity holders of the parent
397,995
43,880
(130,322)
30,075
26,810
368,438
Segment assets
11,733,007
1,667,026
1,242,539
484,259
(36,612) 15,090,220
Equity-accounted investments
—
797,947
—
—
5,553
803,500
Segment liabilities
6,761,528
821,328
478,532
392,340
1,376,423 9,830,151
Consolidated financial statements. 2024
82
Business segments at 31 December 2023(*)
Thousands of euros
Management
and operation
of national
electricity
infrastructure
Management and
operation of
international
electricity
infrastructure
Telecommunications
(fibre optics and satellites)
Other,
corporation &
adjustments
Total
Satellites
Fibre optic
Revenue
1,625,165
74,424
—
150,022
(30,820) 1,818,791
External customers
1,620,866
74,424
—
96,537
27,110 1,818,937
Inter-segment revenue
4,299
—
—
53,485
(57,930)
(146)
Share of profits of equity-accounted
investees (with comparable
businesses)
—
61,321
—
—
(215)
61,106
Depreciation and amortisation
(384,971)
(21,486)
—
(23,858)
(8,422)
(438,737)
Impairment of and gains/(losses) on
fixed asset disposals
—
(33)
—
—
1,278
1,245
Operating profit
768,453
83,437
—
85,198
20,240
957,328
Finance income
27,750
10,468
—
5,793
5,038
49,049
Finance costs
(85,489)
(46,730)
—
(12,385)
23,434
(121,170)
Income tax
(164,930)
1,616
—
(19,724)
(12,034)
(195,072)
Profit after tax from continuing
operations attributable to equity
holders of the parent
545,784
50,294
—
30,027
36,672
662,777
Profit after tax from discontinued
operations attributable to equity
holders of the parent
26,863
26,863
Profit for the year
545,784
50,294
26,863
30,027
36,672
689,640
Segment assets
10,537,737
1,667,118
1,595,298
488,632
196,062 14,484,847
Equity-accounted investments
—
880,461
83,711
—
5,005
969,177
Segment liabilities
6,879,074
766,397
650,008
389,414
270,897 8,955,790
(*) Restated figures
The breakdown by geography of revenue in 2024 and 2023 and of non-current assets at 31 December 2024
and 2023:
Thousands of euros
Revenue
2024
2023 (*)
Spain
1,483,655
1,717,749
Other
110,549
101,042
Total
1,594,204
1,818,791
(*) Restated figures
Thousands of euros
Fixed assets (*)
2024
2023
Spain
10,246,145
10,140,659
Other
819,433
1,660,685
Total
11,065,578
11,801,344
(*) Excludes non-current financial assets, deferred tax assets, trade receivables or other non-current receivables.
28
Interests in joint arrangements
The Group, through Red Eléctrica, and the French TSO Réseau de Transport d'Électricité (RTE) each hold
50% in the joint arrangement, INELFE, with registered office in Paris, set up to study and execute
interconnections between Spain and France to increase the electricity exchange capacity between the two
countries. Decisions at this arrangement require the unanimous consent of the two venturers. Both RTE and
Red Eléctrica have rights to the assets, and obligations for the liabilities, relating to the arrangement, which
has accordingly been classified as a joint operation. In its consolidated financial statements, the Group
therefore recognises its assets, including its share of the assets held jointly and its liabilities, including its
share of any liabilities incurred jointly, at INELFE (note 2.d).
Consolidated financial statements. 2024
83
The Group also has a 50% interest in a joint arrangement through Red Eléctrica Chile S.P.A. with Engie
Energía Chile, S.A. (E.C.L. S.A.), which holds the other 50%, at TEN of Chile. The Group has classified this
joint arrangement as a joint venture as the venturers have rights to the net assets of the arrangement (note
10).
Red Eléctrica Chile S.P.A. also has a 50% interest, together with Engie Energía Chile, S.A. (E.C.L. S.A.) in
Chile's Compañía Operadora de Infraestructuras Eléctricas, S.A. The Group has classified this joint
arrangement as a joint venture as the venturers have rights to the net assets of the arrangement (note 10).
Since 2020, the Group has had a 50% interest, through Red Eléctrica Brasil Holding Ltda., together with
Grupo Energía Bogotá S.A. E.S.P., which holds the other 50%, in Argo Energía Emprendimientos y
Participaciones S.A. (Argo) of Brazil. The Group has also classified this joint arrangement as a joint venture
as the venturers have rights to the net assets of the arrangement (note 10).
Lastly, the Group also has joint control over the Balalink consortium through Redeia Infraestructuras de
Telecomunicación, S.A., by virtual of the existence of contractual agreements under which decisions about
the relevant activities require the unanimous consent of the two venturers. The Group has classified this
investment as a joint operation as the venturers have rights over the arrangement’s assets and obligations
for its liabilities. This consortium was set up to provide dark fibre optic services, with an availability
guarantee, between the Balearic Islands and the Spanish Mediterranean coast.
Redeia Infraestructuras de Telecomunicación, S.A. - Balalink, S.A.U., Unión Temporal de Empresas
(Reintel-Balalink, U.T.E. II for short) was incorporated on 13 December 2024 to provide a dark fibre link, with
a guarantee of availability, between RedIRIS’s point of presence in the Balearic Islands and certain of
RedIRIS-NOVA’s points of presence on the Spanish mainland, along the Mediterranean coast. That service
is scheduled to start up in 2025, upon completion of the services being provided currently by Redeia
Infraestructuras de Telecomunicación, S.A. - Balalink, S.A.U.
29
Guarantees and other commitments extended to third parties and
other contingent liabilities
At both year-ends, the Company, together with Red Eléctrica, was a joint and several guarantor of the USD
250 million private bonds issued in the United States by Redeia Financiaciones, S.L.U. and of Red Eléctrica
Financiaciones, S.L.U.'s eurobond programme in the amount of up to 5 billion euros. A total of 3,490 million
euros had been issued under the latter at 31 December 2024 (2023: 2,990 million euros).
In addition, at both reporting dates, the Company, together with Red Eléctrica, was a joint and several
guarantor of the Euro Commercial Paper (ECP) Programme issued by Red Eléctrica Financiaciones, S.A.U.
for up to 1 billion euros. There were no drawdowns under that programme at either year-end.
On 19 February 2015, Redesur, Tesur and Scotia Sociedad Titulizadora S.A. created a securitisation trust to
hold the Redesur-Tesur trust assets, in order to secure the obligations arising from bond issues amounting
to USD 65 million at 31 December 2024 (2023: USD 71 million).
At 31 December 2024, the Group had extended bank sureties required in the ordinary course of its business
to third parties totalling 425,333 thousand euros (2023: 381,805 thousand euros), including those extended
in the course of discontinued operations. Those sureties are not expected to have any impact on the
Group’s equity.
At year-end 2024, the Group was party to a series of proceedings, mainly administrative and disciplinary
proceedings. The Group has assessed the related risks and does not expect any events to arise that would
result in liabilities and/provisions that have not been recognised in its consolidated financial statements or
that would have a significant impact on its earnings, having estimated its maximum exposure to these
possible risks at around 78 million euros.
Consolidated financial statements. 2024
84
30
Environmental disclosures
In 2024, the Group incurred ordinary expenses of 24,102 thousand euros in protecting and improving the
environment (2023: 24,947 thousand euros), essentially related with biodiversity protection, fire prevention,
landscape integration, climate change and pollution prevention measures.
Also in 2024, a total of 5,639 thousand euros (2023: 2,938 thousand euros) was earmarked to
environmental issues associated with investment projects (including environmental impact studies,
environmental oversight of work, and the adoption of preventive, corrective and accompanying measures).
The Group companies are not party to any environmental lawsuits that could result in significant
contingencies. As for material environmental grants, it is worth noting Elewit’s ECOFOSS R&D project,
subsidised at the European level, for which expenditure topped 1.2 million euros in 2024.
31 Other information
The services for which the auditor has been engaged meet the independence requirements stipulated in
Spain’s Audit Act (Law 22/2015 of 20 July 2015).
The lead audited for the Group companies’ financial statements in both 2024 and 2023 was Ernst & Young,
S.L. and members of its network (hereinafter, EY). The Group remunerated EY the sum of 1,496 thousand
euros in 2024 (2023: 1,192 thousand euros), a figure that reflects all of the fees related to the services
received, regardless of when they were invoiced. These amounts break down as follows:
2024
Total
2023
Total
Thousands of euros
Ernst & Young,
S.L.
Other EY
network firms
Ernst & Young,
S.L.
Other EY
network firms
Audit services
555
454
1,009
533
423
956
Audit-related services
256
26
282
130
17
147
Other services
205
—
205
89
—
89
Total
1,016
480
1,496
752
440
1,192
The amounts included in the table above include the fees related to the companies reclassified to
discontinued operations.
Audit services include the fees corresponding to the audit of the separate and consolidated financial
statements of Redeia Corporación, S.A. and other Group companies.
Audit-related services mainly include an assurance engagement related with the issue of comfort letters, the
effectiveness of internal control over financial reporting (ICFR) assurance report under ISAE 3000 and the
agreed-upon procedures engagement related with covenant compliance.
Other services include assurance of the consolidated non-financial information statement and sustainability
information included in the consolidated management report and other annual sustainability reports.
The fees for audit services engaged by the Group from PricewaterhouseCoopers Audit, SAS in France for
the audit of INELFE, a joint operation, for the years ended 31 December 2024 and 2023 are shown below:
Thousands of euros
2024
2023
Audit services
20
15
Total
20
15
Note in relation to the investees accounted for using the equity method, EY is the auditor at TEN, while
KPMG audits Hisdesat and Argo.
Consolidated financial statements. 2024
85
32
Earnings per share
The earnings per share amounts for 2024 and 2023:
2024
2023*
Earnings (thousands of euros)
368,438
689,640
Number of shares
541,080,000
541,080,000
Average number of own shares
1,051,733
1,449,953
Basic earnings per share for continuing operations (euros)
0.92
1.23
Basic earnings per share for discontinued operations (euros)
(0.24)
0.05
Diluted earnings per share for continuing operations (euros)
0.92
1.23
Diluted earnings per share for discontinued operations (euros)
(0.24)
0.05
Basic earnings per share (euros)
0.68
1.28
Diluted earnings per share (euros)
0.68
1.28
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified as a
discontinued operation in 2024 under IFRS 5, as outlined in notes 1 and 5.
Basic and diluted earnings per share coincided in both reporting periods.
33
Share-based payments
The share-based payments made to executives and employees in 2024 and 2023:
2024
2023
Number of
shares
Average
price
(euros)
Amount
(thousand
euros)
Number of
shares
Average
price
(euros)
Amount
(thousand
euros)
Senior executives
8,156
16.53
135
8,197
14.90
122
Employees
431,919
16.53
7,140
379,686
14.90
5,657
Total
440,075
16.53
7,275
387,883
14.90
5,779
These payments relate to payments to participating employees with a charge against their earnings for the
year; there are no assets or liabilities associated with these payments.
The shares were valued at their quoted price on the date of their delivery. These share deliveries were
carried out under the scope of authorisations given at the Parent’s Annual General Meetings and the related
expense was recognised under employee benefits expense in the consolidated statement of profit or loss.
34
Events after the reporting date
As disclosed in note 5, on 31 January 2025, Redeia, through its subsidiary, Redeia Sistemas de
Telecomunicaciones S.A.U., agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of
Hispasat S.A. to Orbitude, S.L.U, a wholly-owned subsidiary of Indra.
The agreed sale price for that 89.68% interest in Hispasat is 725 million euros. The sale is subject to
delivery of certain suspensive conditions and is expected to close in 2025.
35
Explanation added for translation to English
The abridged Financial Statement are presented on the basis of the regulatory financial reporting framework
applicable to the Company in Spain. Certain accounting practices applied by the Company that conform to
that regulatory framework may not conform to other generally accepted accounting principles and rules.
In the event of a discrepancy, the Spanish-language prevails for legal purposes.
Consolidated financial statements. 2024
86
Appendix I List of investees at 31 December 2024 and 2023
Redeia
Breakdown of equity investments at 31 December 2024 and 2023
- Company
2024
2023
- Registered office
Percentage interest (1)
Percentage interest (1)
- Core business
Direct
Indirect
Direct
Indirect
Redeia Corporación S.A., the Parent, incorporated in 1985.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Management of the group of companies, provision of assistance/support services to investees and operation of the property owned by the
Company.
A) Fully consolidated subsidiaries
Red Eléctrica de España, S.A.U. (Red Eléctrica)
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Transmission and operation of the Spanish electricity system and management
of the transmission network.
100%
—
100%
—
Red Eléctrica Internacional, S.A.U. (Redinter)
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Acquisition and holding of international equity investments. Provision of
advisory, engineering and construction services. Performance of electricity
activities outside the Spanish electricity system.
100%
—
100%
—
Redeia Infraestructuras de Telecomunicación, S.A.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Provision of advisory, engineering and construction services.
51%
—
51%
—
Red Eléctrica Infraestructuras en Canarias, S.A.U.
- Calle Juan de Quesada, 9. Las Palmas (Gran Canary Island) (Spain).
- Management of the construction of energy storage facilities and of the water
cycle.
100%
—
100%
—
Redeia Financiaciones, S.L.U.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Financing activities.
100%
—
100%
—
Red Eléctrica Financiaciones, S.A.U.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Financing activities.
100%
—
100%
—
Redeia Sistemas de Telecomunicaciones, S.A.U.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Acquisition, holding, management and administration of
Spanish and foreign equity securities.
100%
—
100%
—
Elewit, S.A.U.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Activities geared towards driving and accelerating technological innovation.
100%
—
100%
—
Safedelimit, S.L
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).
- Development and sale of safety devices for personal and industrial use.
—
94.94% (l)
—
—
Redcor Reaseguros, S.A (Redcor)
- 26, Rue Louvigny. (Luxembourg).
- Reinsurance activities. Incorporated in 2010 in Luxembourg in order to reinsure
the risks of the Group companies, thereby guaranteeing better access to the
international reinsurance markets.
100%
—
100%
—
Red Eléctrica Andina, S.A.C. (REA)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Provision of line and substation maintenance services.
—
100% (a)
—
100% (a)
Consolidated financial statements. 2024
87
- Company
2024
2023
- Registered office
Percentage interest (1)
Percentage interest (1)
- Core business
Direct
Indirect
Direct
Indirect
Red Eléctrica del Sur, S.A.C. (Redesur)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (a)
—
100% (a)
Transmisora Eléctrica del Sur , S.A.C. (Tesur)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (c)
—
100% (c)
Transmisora Eléctrica del Sur 2 , S.A.C. (Tesur 2)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (c)
—
100% (c)
Transmisora Eléctrica del Sur 3 , S.A.C. (Tesur 3)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (c)
—
100% (c)
Transmisora Eléctrica del Sur 4 , S.A.C. (Tesur 4)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (j)
—
100% (j)
Red Eléctrica del Norte Perú, S.A.C. (Redelnor)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (a)
—
100% (a)
Concesionaria Línea de Transmisión CCNCM, S.A.C. (CCNCM)
-Av. Javier Prado Este 492 Int. 1001 Urb. Jardín San Isidro. Lima (Peru)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (d)
—
100% (d)
Red Eléctrica Chile S.P.A. (Rech)
- Isidora Goyenechea 3000, Oficina 1602 Las Condes, Santiago (Chile)
- Acquisition, holding, management and administration of securities.
—
100% (a)
—
100% (a)
Red Eléctrica del Norte S.A. (Redenor)
- Isidora Goyenechea 3000, Oficina 1602 Las Condes, Santiago (Chile)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
69.9% (e)
—
69.9% (e)
Red Eléctrica del Norte 2 S.A. (Redenor 2)
- Isidora Goyenechea 3000, Oficina 1602 Las Condes, Santiago (Chile)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
100% (e)
—
100% (e)
Red Eléctrica Brasil Holding Ltda. (REB)
-Av. Brigadeiro Faria Lima, No. 3729, 5, 04538-905. São Paulo (Brazil)
- Acquisition, holding, management and administration of securities.
—
100% (a)
—
100% (a)
Hispasat S.A. (*)
- Calle de Anabel Segura, 11. Alcobendas. Madrid. (Spain).
- Parent of the Hispasat Subgroup. Operation of the satellite communications
system and provision of space segment services for the geostationary orbital
slots allocated to the Spanish state.
— 89.68% (f) (g)
— 89.68% (f) (g)
Hispasat Canarias, S.L.U. (*)
- Calle Practicante Ignacio Rodriguez s/n Edificio Polivalente IV. Las Palmas
(Gran Canary Island) (Spain).
- Sale and lease of satellites and their capacity.
—
89.68% (g)
—
89.68% (g)
Hispasat Brasil, Ltda. (*)
- Praia do Flamengo, 200 Rio de Janeiro (Brazil).
- Sale and marketing of satellite capacity.
—
89.68% (g)
—
89.68% (g)
Consolidated financial statements. 2024
88
- Company
2024
2023
- Registered office
Percentage interest (1)
Percentage interest (1)
- Core business
Direct
Indirect
Direct
Indirect
Hispamar Satélites, S.A. (*)
- Praia do Flamengo, 200 Rio de Janeiro (Brazil).
- Sale and marketing of satellite capacity.
—
89.68% (g)
—
89.68% (g)
Hispamar Exterior, S.L.U. (*)
- Calle de Anabel Segura, 11. Alcobendas. Madrid. (Spain).
- Sale and marketing of satellite capacity.
—
89.68% (g)
—
89.68% (g)
Hispasat de México, S.A. de C.V. (*)
- Agustín Manuel Chávez 1-001 Col. Centro de Ciudad Santa Fe, Mexico City
(Mexico)
- Use of radio spectrum, telecommunications networks and satellite
communication.
—
89.68% (g)
—
89.68% (g)
Consultek Inc. (*)
- 1036 Country Club Drive, Suite 202, Moraga, CA 94556. (USA).
- Technical consultancy services.
—
89.68% (g)
—
89.68% (g)
Hispamar Satélites, S.A. (Venezuela) (*)
- Torre Phelps, piso 10 ofic. 10, Caracas (Venezuela)
- Sale and provision of satellite telecommunications services.
—
89.68% (g)
—
89.68% (g)
Hispasat UK, Ltd. (*)
30 Finsbury Square, London. (England)
- Sale and provision of satellite telecommunications services.
—
89.68% (g)
—
89.68% (g)
Hispasat Perú, S.A.C. (*)
Jr. Carlos Baca Flor 307, Dpto. No. 701, Distrito de Magdalena del Mar. Lima
(Peru)
- Sale and provision of satellite telecommunications services.
—
89.68% (g)
—
89.68% (g)
Axess Networks Solutions, S.L.U. - MERGED COMPANY - (*) (m)
Calle Beethoven 15, 2º 1ª, 08021 Barcelona (Spain)
- Management and administration of equity securities in entities not resident in
Spanish territory
—
—
— 89.68% (g) (h)
Axess Networks Solutions Arabia Saudita, S.L. - LIQUIDATED COMPANY - (*)
(n)
Calle Beethoven 15, 2º 1ª, 08021 Barcelona (Spain)
- Management and administration of equity securities in entities not resident in
Spanish territory
—
—
— 89.68% (g) (h)
Axess Networks Solutions Holding Germany, GmbH (*)
Falkenweg 1, 53809, Ruppichteroth (Germany)
- Acquisition, holding and management of investments in companies involved in
the telecommunications technology field.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions Germany, GmbH (*)
Falkenweg 1, 53809, Ruppichteroth (Germany)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions UK Ltd - IN LIQUIDATION - (*)
2nd Floor, 168 Shoreditch High Street, E1 6RA, London (United Kingdom)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions Colombia S.A.S. (*)
Carrera 7 No. 71-52 Torre B, Oficina 501 in Bogota City, Department of
Cundinamarca (Colombia)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Consolidated financial statements. 2024
89
- Company
2024
2023
- Registered office
Percentage interest (1)
Percentage interest (1)
- Core business
Direct
Indirect
Direct
Indirect
Axess Networks Cyprus LTD - IN LIQUIDATION - (*)
Ethnikis Antistaseos, 23, Flat/Office 303, 3025, Llimasol (Cyprus)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions Ecuador S.A. (*)
Avenida de los Shyris E9-38 y Bélgica Edificio Shyris Century, Piso 7 Quito
(Ecuador)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions Perú S.A.C (*)
Av. Alfredo Benavides No. 1555 Dpto. 301 – Urb. San Antonio – Miraflores –
Lima. (Peru)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions Chile S.A. (*)
Isidora Goyenechea 3365, Piso 9, Comuna de Las Condes, Santiago de Chile.
(Chile)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
Axess Networks Solutions México S.A de C.V (*)
Av. Paseo de la Reforma 26, Piso 16, Col. Juárez, C.P. 06600 Del.
Cuauhtémoc, Mexico City (Mexico)
- Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
HPS Corporativo S. de R.L de C.V (*)
Mariano Escobedo No. 353-B, Interior 3A, Col. Polanco V Sección, Del. Miguel
Hidalgo, CP 11560, Mexico City. (Mexico)
Provision of telecommunications services.
— 89.68% (g) (h)
— 89.68% (g) (h)
B) Investees accounted using the proportionate method
Interconexión Eléctrica Francia-España, S.A.S. (Inelfe)
- Inmueble Window, 7 C Place du Dôme. Paris. (France)
- Study and execution of interconnections between Spain and France.
—
50% (b)
—
50% (b)
C) Equity-accounted investees
Transmisora Eléctrica del Norte S.A. (TEN)
- Avenida Apoquindo No. 3721, piso 6, Las Condes, Santiago (Chile)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
50% (e)
—
50% (e)
Compañía Operadora de Infraestructuras Eléctricas, S.A. (COIESA)
- Rómulo Peña nº 4008, Antofagasta, Santiago (Chile)
- Monitoring, control and supervision of the national electricity system.
—
50% (e)
—
50% (e)
Argo Energía Empreendimentos y Participações S.A.
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Acquisition, holding, management and administration of securities.
—
50% (i) (k)
—
50% (i) (k)
Argo Transmissão de Energia S.A. (Argo I)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
50% (k)
—
50% (k)
Argo II Transmissão de Energia S.A. (Argo II)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
50% (k)
—
50% (k)
Consolidated financial statements. 2024
90
- Company
2024
2023
- Registered office
Percentage interest (1)
Percentage interest (1)
- Core business
Direct
Indirect
Direct
Indirect
Argo III Transmissão de Energia S.A. (Argo III)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
50% (k)
—
50% (k)
Argo IV Transmissão de Energia S.A. (Argo IV)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
50% (k)
—
50% (k)
Argeb Energia Empreendimentos e Participações S.A. (Argeb)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Acquisition, holding, management and administration of securities.
—
31.25% (k)
—
31.25% (k)
Argo V Transmissão de Energia S.A. (Argo V)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
31.25% (k)
—
31.25% (k)
Argo VI Transmissão de Energia S.A. (Argo VI)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
31.25% (k)
—
31.25% (k)
Transmissora José Maria de Macedo de Eletricidade S.A. (Argo VII)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
31.25% (k)
—
31.25% (k)
Giovanni Sanguinetti Transmissora de Energia S.A. (Argo VIII)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
31.25% (k)
—
31.25% (k)
Argo IX Transmissão de Energia S.A. (Argo IX)
- Calle Tabapuã, 841 – 5º andar – Itaim Bibi – São Paulo/SP (Brazil)
- Electricity transmission and operation and maintenance of electricity
transmission networks.
—
31.25% (k)
—
31.25% (k)
Hisdesat Servicios Estratégicos, S.A. (*)
- Paseo de la Castellana 143, 28046 Madrid (Spain)
- Sale and marketing of space systems for government use.
—
38.56% (g)
—
38.56% (g)
Grupo de Navegación Sistemas y Servicios, S.L. (*)
- Calle Isaac Newton 1, Madrid (Spain)
- Operation of satellite systems.
—
12.82% (g)
—
12.82% (g)
Grupo Sylvestris, S.L. (*)
Paseo de la Ermita del Santo 5, 28011 Madrid (Spain)
- Reforestation, gardening and rural development, combining engineering and
social impact.
—
9.73% (g)
—
9.73% (g)
Okto Grid ApS
Gammel Kongevej 11, 5. 1610 København V (Denmark)
- Measurement systems for the energy industry.
—
13.07% (I)
—
13.07% (I)
Consolidated financial statements. 2024
91
- Company
2024
2023
- Registered office
Percentage interest (1)
Percentage interest (1)
- Core business
Direct
Indirect
Direct
Indirect
Nearby Computing, S.L. (2)
- Travessera de Gràcia 18, 3r, 3a, 08021 Barcelona (Spain)
- Development of software and/or computer applications.
—
—
—
11.71% (l)
Hybrid Energy Storage Solutions, S.L.
-Av. Benjamín Franklin, 12, Mód. No. 24, 46980 Paterna, Valencia (Spain)
- Design, production and sale of energy storage technology solutions for next-
generation electricity networks.
—
19.61% (l)
—
19.61% (l)
Aerolaser System, S.L.
-Av. José Mesa y López, 45, L. D4, 35010 Las Palmas, Gran Canary Island
(Spain)
- Development and sale of sensory technological solutions for geospatial
technology.
—
24.01% (l)
—
24.01% (l)
Unusuals World S.L.
- Avenida Gregorio Peces Barba (Business Incubator), 1, Leganés, 28819,
Madrid. (Spain)
- IT solution for defining of models for halting anomalies in high-tension power
lines
—
17.04% (l)
—
— %
(1) Equivalent to voting rights.
(2) This investment was deconsolidated in 2023 (note 2.g).
(a) Shareholding held through Red Eléctrica Internacional S.A.U.
(b) Shareholding held through Red Eléctrica de España S.A.U.
(c) Shareholding held through Red Eléctrica del Sur, S.A.C.
(d) Shareholding held through Red Eléctrica del Norte Perú, S.A.C.
(e) Shareholding held through Red Eléctrica Chile SpA.
(f) Shareholding held through Redeia Sistemas de Telecomunicaciones, S.A.U.
(g) Company belonging to the Hispasat Subgroup, whose parent is Hispasat, S.A.
(h) Shareholding held through the Axess subgroup, whose parent is Axess Networks Solutions, S.L.U.
(i) Shareholding held through Red Eléctrica Brasil Holding Ltda.
(j) Shareholding held through Red Eléctrica del Sur, S.A.C. and Red Eléctrica Internacional, S.A.U.
(k) Company belonging to the Argo Subgroup whose parent is Argo Energía Empreendimentos y Participações S.A.
(l) Shareholding held through Elewit, S.A.U.
(m) Axess Networks Solutions, S.L.U. was merged into Hispasat, S.A. in June 2024.
(n) Company liquidated in June 2024 (note 2 g)
(*) Companies reclassified to discontinued operations (note 5).
Consolidated
Management Report
for the year ended 31
December 2024
Consolidated Management Report for 2024
2
Contents
1
Company overview..........................................................................................................................................
3
2
Business and earnings performance ............................................................................................................
9
3
Liquidity and capital ........................................................................................................................................
13
4
Risk management ...........................................................................................................................................
14
5
Disclosures regarding average supplier payment term. Additional Provision Three - "Disclosure
requirements" under Law 15/2010 of 5 July 2010 ......................................................................................
18
6
Events after the reporting date ......................................................................................................................
18
7
Outlook ..............................................................................................................................................................
18
8
Innovation .........................................................................................................................................................
20
9
Own shares ......................................................................................................................................................
22
10 Other relevant information .............................................................................................................................
22
11 Consolidated non-financial information statement and sustainability information for 2024 .................
25
12 Annual Corporate Governance Report ........................................................................................................
243
13 Annual Report on Director Remuneration ...................................................................................................
243
The various sections of this consolidated management report contain certain forward-looking information reflecting projections and
estimates and their underlying assumptions, statements referring to plans, objectives and expectations around future transactions,
investments, synergies, products and services, as well as statements concerning future earnings and dividends and estimates made
by the directors, based on assumptions they consider reasonable.
While the Group considers the expectations reflected in those statements to be reasonable, investors and holders of shares in the
Parent are cautioned that the forward-looking information and statements are subject to risks and uncertainties, many of which are
difficult to foresee and generally beyond the Group's control. As a result of such risks, actual performance and developments could
differ significantly from those expressed, implied or forecast in the forward-looking information and statements.
The forward-looking statements are not guarantees of future performance and have not been reviewed by the Group's external
auditors or by other independent third parties. Investors and holders of shares in the Parent are cautioned not to take decisions on
the basis of forward-looking statements that refer exclusively to information available as at the date of this report. All of the forward-
looking statements contained in this report are expressly subject to this disclaimer. The forward-looking statements included in this
document are based on the information available at the date of this management report. Unless required otherwise under applicable
law, the Group undertakes no obligation to publicly update any forward-looking statement or revise its forecasts, whether as a result
of new information, future events or otherwise.
In order to make it easier to understand the information provided in this document, certain alternative performance measures have
been included. A definition of these is available at: https://www.redeia.com/es/accionistas-e-inversores/informacion-
financiera/medidas-alternativas-rendimiento
Consolidated Management Report for 2024
3
1. Company overview
1.1 Organisational structure
Governing bodies of the Company
The Board of Directors and the shareholders are responsible for governing and managing the Group's parent
company, Redeia Corporación, S.A. (hereinafter, the Parent or the Company).
The Annual General Meeting is governed by the bylaws and the general meeting regulations, in accordance
with the Spanish Companies Act.
At 31 December 2024, the Board of Directors comprised 12 members and three committees: the Audit
Committee, the Appointments and Remuneration Committee and the Sustainability Committee. These three
essentially technical committees created by the Board of Directors to support it in its duties are designed to
enhance efficiency and transparency.
The structure, composition, roles and responsibilities of the three board committees are set out in the bylaws
and further specified in the Regulations of the Board of Directors. Both sets of corporate regulations have
been fully brought to line with the Spanish Companies Act, the Good Governance Code of Listed Companies
and the most recent international practices and recommendations on committee composition and committee
member independence and fitness.
In line with international best practice in corporate governance, the Company continues to observe and
respect the separation of the positions of Chair of the Board of Directors and Chief Executive Officer (CEO),
as per the governance model approved in 2015.
The Chair of the Board of Directors is entrusted solely with the duties inherent in that position.
Meanwhile, the position of lead independent director, created in 2013, has been maintained, one of the
reasons being that this role helps to ensure a system of balances and checks within the Board of Directors in
favour of independent directors and also because it constitutes an effective good governance practice that is
highly valued by shareholders and proxy advisors, given the responsibilities attaching to the role of lead
director.
The Annual Corporate Governance Report, which is attached hereto, contains detailed information regarding
the composition and operation of the governing bodies of the Parent.
Composition of Redeia
See note 1 and Appendix I to Redeia's consolidated financial statements for the year ended 31 December
2024 for details of how the Group is structured to undertake its activities.
1.2
Business and earnings performance
The Group carries out activities both in Spain and abroad. Most notably, its principal activities comprise the
management and operation of electricity infrastructure in Spain, Peru, Chile and Brazil, and the provision of
telecommunications services through the lease in Spain of an extensive dark fibre backbone network, and
technical sites and spaces for housing customers' telecommunications equipment.
On 31 January 2025, Redeia and Indra Sistemas, S.A. (Indra) entered into a binding agreement for the
purchase by the latter of the Group's satellite business, under which the two parties are committed to bringing
that transaction to a close in the coming months. As is customary, the transaction is subject to delivery of
certain suspensive conditions, which are essentially regulatory conditions, in both Spain and other
jurisdictions; it is also subject to approval at Indra's Annual General Meeting and to the execution of certain
agreements with respect to the segment being deconsolidated by the Redeia Group.
Consolidated Management Report for 2024
4
1.2.1 Management and operation of Spanish electricity transmission infrastructure
Transmission network
A total of 487 km of new transmission line came into service in 2024, bringing Red Eléctrica's transmission
grid to 45,592 km at year-end. Transformation capacity likewise increased by 2,235 MVA to a nationwide total
of 97,981 MVA. Total investment in the national transmission network amounted to 976.3 million euros in 2024.
In March 2022, Spain's Council of Ministers, on a recommendation from the Ministry for the Ecological
Transition and Demographic Challenge (hereinafter, the Ministry), approved the Electricity Transmission Grid
Development Plan for 2021-2026. That plan constitutes a fundamental tool for guaranteeing the energy
transition and establishes the transmission grid development projects to be implemented over the coming
years in order to achieve national and European energy policy objectives.
The main objective of the 2021-2026 Plan is to boost renewable production and maximise use of the existing
grid, thanks to new technologies such as batteries or power electronics. The environmental dimension takes
on special relevance, with the main objective of making grid development compatible with respect for our
environment. The Plan entails investing nearly 7,000 million euros to improve the transmission grid. The
largest volume of investment is earmarked to improving the integration of renewable energy sources, providing
a clear benefit to society in terms of reducing emissions, saving electricity system costs, and activating the
economy.
In addition, a new Council Resolution was published on 22 April 2024, approving the modification of certain
specific aspects of the original 2021-2026 Plan. Those modifications as a whole imply additional investments
totalling 489 million euros, which is within the boundaries for total investment in the electricity transmission
grid in 2021-2026 approved in Royal Decree 1047/2013.
In 2024, the most significant initiatives in terms of development of the transmission network, by major lines of
initiative, were as follows:
•
The interconnection between Spain and France via the Bay of Biscay continued to progress as scheduled.
On the Spanish side, the administrative construction permit and declaration of public utility were obtained
in February 2024. Meanwhile, RTE already has the necessary authorisations. The works continued with
the ultimate goal of commissioning the first link-up as scheduled in 2027.
•
The Interconnection between Mainland Spain and the Balearic Islands encompasses several
complementary initiatives: a new high-voltage direct current connection between the mainland and
Mallorca along with components fully integrated into the grid such as synchronous condensers in Mallorca
and a battery system on the islands of Menorca and Ibiza, which will permit, in addition to additional
connectivity between systems, higher utilisation to increase interchange between the mainland (where the
share of renewable generation is high) and the Balearics, so improving efficiency, costs and supply
security for the island system.
•
The aim of the work underway at the Galicia - Portugal Interconnection is to reinforce the international
connection with Portugal. In May 2025, the Beariz substation and Beariz entry-exit power line were
commissioned, leaving the remaining actions planned for the first half of 2024, so culminating
reinforcement of the international connection with Portugal.
•
The purpose of the La Gomera - Tenerife Interconnection is to link up the electricity systems of both
islands, increasing the quality and security of supply and lowering production costs by improving power
generation efficiency and enabling greater integration of renewable energy.
•
Improved security and quality of electricity supply in Ceuta is the goal of the Mainland - Ceuta
Interconnection work to integrate Ceuta's grid with the mainland system. Administrative authorisation for
starting the interconnection's civil engineering work was obtained in June 2024.
•
Asset renewal. This set of actions was included for the first time in the 2021-2026 Plan, with the aim of
ensuring security and continuity of supply in light of the gradual ageing, technological obsolescence and
spare part shortages, while fostering the integration of renewable sources of energy and avoiding any
adverse effects on the environment.
Consolidated Management Report for 2024
5
•
Special Regime Evacuation (EvRE). These are actions for the evacuation of renewable power, as
envisioned in Royal Decree-Law 15/2018 (on urgent measures to promote the energy transition) and
included in the 2021-2026 Plan.
Red Eléctrica's transmission grid ended 2024 with high levels of service quality, within the maximum
performance thresholds set out in Royal Decree 1955/2000. The availability ratio for the national transmission
grid in 2024 was 97.99%, above that of 2023 (97.64%). By system, availability of the mainland transmission
grid was 97.98% in 2024, also up from 2024 (97.61%). In the Balearic Islands, availability was 98.53%, up
from 2023 (97.84%) and in the Canary Islands it was 98.83%, down from 2023 (98.93%)1.
System operation
In 2024, investment in system operation amounted to 34.5 million euros, annual growth of 56.1%. In addition,
the Company earmarked 94.1 million euros to storage in the Canaries (2023: 57.8 million euros).
Demand for electricity in Spain in 2024 amounted to 248.8 TWh, marking growth of 0.9% from 2023. Electricity
generation in 2024 amounted to 262.2 TWh, with energy from non-CO2 -emitting sources accounting for 76.8%
of the total, compared to 72.0% in 2023. This growth is explained largely by annual increases in hydropower
and photovoltaic power generation of 35.5% and 18.9%, respectively. Wind power, with a share of 23.2%, was
the most widely used source for the second year in a row. Note, lastly, that 149.0 TWh of the electricity
generated came from renewable sources, which is 56.8% of the total.
The most significant events to have taken place in 2024 are as follows:
Mainland system
•
Mainland electricity demand totalled 233,462 GWh, up 0,9% from 2023. Correcting for calendar effects
and temperatures, demand attributable primarily to economic activity increased by 1,5%. Despite this
growth, demand for electricity in 2024 remained below that recorded in the year of the pandemic (236,755
GWh) and we would have to go back to 2003 to find a lower figure (225,728 GWh).
•
Peak instantaneous power was recorded at 8:56pm on Tuesday, 9 January, at 38,272 MW, down 2.1%
from the peak of the previous year and down 15.8% from the all-time high of 45,450 MW recorded on 17
December 2007. Peak hourly demand occurred on 11 January (between 8:00pm and 9:00pm), at 38,199
MWh, 14.9% below the all-time high reached in 2007.
•
Installed capacity on the mainland ended 2024 at 126,082 MW, up 4.4% from December 2023 (5,292
MW). Additions to the system's installed capacity primarily reflect the incorporation of solar photovoltaic
and wind power, with the former increasing by 21.5% with respect to 2023 and the latter, by 3.9%. The
definitive exclusion of the Puentes de García Rodríguez thermal power plant in La Coruña reduced
installed capacity by 1,400 MW. The other technologies experienced no, or only minor, changes in
capacity.
•
Hydropower production capacity stood at 35,160 GWh at the end of December 2024, up 24.1% from the
historical average and 30.3% higher than in 2023. Reserves of hydroelectric power represented a fill level
of 52.3% of total capacity across all reservoirs at the end of 2024, compared with 51.0% in the prior year.
•
In 2024, wind accounted for 24.0% of total demand for power (24.6% in 2023), nuclear 21.1% (21.9% in
2023), solar 19.2% (16.6% in 2023), combined cycle technology 11.7% (16.0% in 2023) and hydro 14.0%
(10.3% in 2023). Meanwhile, cogeneration, coal, other renewables and waste accounted for less than
10% each, together making up the remaining 12.0% of total demand.
•
Notably, renewable energies increased their share of the overall production mix within the electricity
system, registering their highest share to date at 59.0% of total production (53.2% in 2023). In absolute
terms, renewable generation reached an all-time high of 146,489 GWh, up 10.3% on the previous year,
largely due to a 35.5% increase in hydro power and a 18.8% increase in solar photovoltaic production.
1 Data pending audit.
Consolidated Management Report for 2024
6
•
In terms of CO2 emissions in the mainland electricity sector, the increase in renewable generation meant
that 2024 marked the lowest CO2 equivalent emissions on record, at 20.0 million tonnes, down 20.6% on
the 25.1 million tonnes recorded in 2023.
•
Electricity exchanges through the mainland-Balearic Islands link resulted in net exports to the islands of
1,580 GWh (down 10.8% compared to 2023), covering 26.2% of demand for power on the islands.
•
International electricity exchanges yielded a net export balance, for the second year running, of -10,227
GWh in 2024. Exports came to 24,581 GWh (25,273 GWh in 2023), while imports stood at 14,354 GWh
(11,316 GWh in 2023).
Non-mainland system
•
In 2024, total demand for electricity across the non-mainland systems was 0.4% higher than in 2023. By
system, demand in the Balearic Islands was 0.3% higher, in the Canary Islands it increased by 0.5%, in
Ceuta rose 0.2%, and in Melilla it was 0.5% higher.
•
Installed capacity in non-mainland systems increased by 1.1%, largely driven by the growth in solar
photovoltaic and wind technology, where capacity climbed 10.4% and 0.8%, respectively.
•
Under Spanish Law 17/2013, ownership of non-mainland pumped-storage hydropower facilities systems
whose main purpose is to guarantee supply and system security and the integration of non-manageable
renewable energies is attributed to the system operator.
Against that backdrop, Red Eléctrica, as system operator, holds the concession over Salto de Chira
pumped-storage hydropower facility in Gran Canary Island. Red Eléctrica Infraestructuras en Canarias,
S.A.U. is tasked with providing certain consultancy, engineering, project management, monitoring and
technical support services relating to the implementation, start-up and effective operation of the facilities
that make up the hydroelectric power plant complex. The aim of this development is to maximise the
integration of renewable energy into the electricity system in Gran Canary Island, while also overcoming
the challenge of being able to store it when there is surplus supply. Moreover, the desalination facility,
which will make it possible to pump freshwater up to the Chira and Soria reservoirs, provides a solution
for the periods of drought that affect the island.
In 2024, the civil engineering work to dig out the galleries and tunnels for accessing the water circuit and
underground cavern continued, alongside the works for offtaking water from the Chira and Soria
reservoirs. Significant progress was made on the Water to Wire contract with the manufacture of the
turbines and their accessories. The water pressure pipeline was installed along the Arguineguín Ravine
and environmental restoration work was done by replanting indigenous plants. Construction of the
desalination processing plant (EDAM) finished and the permits were obtained for occupying the onshore
and offshore public domain land and for discharging water overland and into the sea that are needed for
the offshore works. The Gas Insulation Substation (GIS) procurement and assembly contract was
awarded.
•
Regarding the possibility of installing a pumped-storage hydropower plant in Tenerife, contacts continued
with the various public organisations involved and further progress was made in drawing up the preliminary
plans.
1.2.2 Management and operation of international electricity transmission infrastructure
The Group has been managing and operating international electricity infrastructure for over 20 years. This
business is run through its subsidiary Red Eléctrica Internacional, S.A.U., which is present in Peru, Chile and
Brazil. Overall, the Company manages and operates a network of 7,676 km across Peru, Chile and Brazil.
The start-up of operations in Peru, Chile and Brazil is the outcome of an ongoing analysis of business
opportunities, and meets the Group's criterion of undertaking investments in countries with a favourable
economic situation and a stable regulatory framework that ensures an adequate return on investment.
Red Eléctrica Internacional's presence in Peru, Chile and Brazil breaks down as follows:
Consolidated Management Report for 2024
7
Activity in Peru
In Peru, Red Eléctrica Internacional, S.A.U. (Redinter) operates power transmission infrastructure under a 30-
year concession. It is the main transmission company in the south of the country and it has also been operating
in the north of the country since 2019, following the acquisition of Concesionaria Línea de Transmisión
CCNCM S.A.C. by its subsidiary Red Eléctrica del Norte de Perú, S.A. It has a total of 1,691 km of transmission
lines in commercial operation.
It currently has six concessions in operation at the companies Red Eléctrica del Sur S.A., Transmisora
Eléctrica del Sur S.A.C., Transmisora Eléctrica del Sur 2 S.A.C., Transmisora Eléctrica del Sur 3 S.A.C.,
Transmisora Eléctrica del Sur 4 S.A.C. and CCNCM S.A.C., all of which are adept in the management and
commercial operation of power transmission infrastructure, allowing them to offer a power transmission
service with the utmost availability and uptime while supporting the growth and development of the areas in
which they operate.
During 2024, average voltage levels remained within the limits set out in the Technical Standard for the Quality
of Electricity Services, reaching a cumulative grid availability in 2024 of 99.81% at Red Eléctrica del Sur S.A.,
99.83% at Transmisora Eléctrica del Sur S.A.C., 99.80% at Transmisora Eléctrica del Sur 2 S.A.C, 99.91% at
Transmisora Eléctrica del Sur 3 S.A.C., 99.93% at Transmisora Eléctrica del Sur 4 S.A.C. and 99.93% at
CCNCM.
Red Eléctrica Andina S.A.C. also happens to provide maintenance services for the installations of all the
concessions described above. It also carries out construction supervision work for other clients, thus
cementing its position as a leading provider of such services in southern Peru.
Activity in Chile
The transmission business in Chile is articulated under the parent company for that market, namely Red
Eléctrica Chile S.P.A., a company incorporated in 2015 which owns 50% of Transmisora Eléctrica del Norte
S.A., 69.9% of Red Eléctrica del Norte S.A. and 100% of Red Eléctrica del Norte 2 S.A. Overall, the
transmission business in Chile has a total of 1,776 km of lines in commercial operation.
Consolidated Management Report for 2024
8
•
Transmisora Eléctrica del Norte S.A.: operates the 500 kV Changos – Cumbre – Nueva Cardones axis,
which forms part of the National Transmission System, as well as the 220 kV Mejillones – Changos
dedicated line.
•
Red Eléctrica del Norte S.A.: the Chilean Ministry of Energy published a Decree on 18 November 2024
calling for the start of the work for expanding the Nueva Pozo Almonte 220kV substation by the contractor,
AMETEL. Red Eléctrica del Norte S.A. is the entity tasked with managing the execution of that expansion.
In addition, Exempt Decree No. 266 2023 was published on 5 November 2024, establishing the expansion
works for the national and regional transmission systems. That Decree tasks the owner, Red Eléctrica del
Norte S.A., to include the construction of a new position for a new 1 x 220kV line reactor, Nueva Pozo
Almonte – Roncacho, at the Nueva Pozo Almonte Substation.
•
Red Eléctrica del Norte 2 S.A.: this company continues to operate three transmission lines, as well as the
new connection of a renewable energy facility (Sierra Gorda photovoltaic facility) to the interconnected
system, which has been commercially operational since 27 February 2023. In 2024, the works began for
connecting the Distrito Minera Centinela Development to the Centinela Substation, owned by Red
Eléctrica del Norte 2 S.A. Judging by its current progress, these positions are expected to be
commissioned in the second half of 2025. The expanded facilities envisaged under the Expansion Plan
contemplated in Decree No. 198 for the Transmission System were commissioned in May 2024.
The transmission system availability rates through to 2024 are 100% at Red Eléctrica del Norte, 100% at Red
Eléctrica del Norte 2, and 99.65% at Transmisora Eléctrica del Norte.
NEXPERIA was incorporated in November 2023 to provide service to the control centre in Chile; it is 50%-
owned by Red Eléctrica Chile S.P.A. and 50%-owned by Engie Energía Chile S.A. NEXPERTIA's corporate
object is to monitor, control and supervise the electricity facilities of the national electricity system (SEN),
operate the facilities via SCADA commands and market and sell any surplus fibre optic capacity.
This control centre began operations in March 2024 and is expected to deliver efficiencies in terms of operating
cost savings.
Activity in Brazil
Through its subsidiary Red Eléctrica Brasil, Redinter holds a 50% stake in the Brazilian holding company Argo
Energia Empreendimentos e Participações S.A. (Argo) in Brazil, managing, alongside Grupo Energía Bogotá
(GEB), various high voltage line concessions (500 kV and 230 kV) and electrical substations. The concessions
are as follows:
•
Argo I operates 1,110 km of 500kV lines and five substations in northeast Brazil.
•
Argo II is a project to expand a substation in the state of Minas Gerais. Synchronous Condensers 2 and
1 are currently in service.
•
Argo III operates 320 km of 230 kV power lines and five substations in the state of Rondônia.
•
Argo IV, which was incorporated in 2022 following the acquisition of 100% of Rialma Transmissora de
Energia III S.A. by Argo Energia, operates 313 km of 500 kV lines.
In addition, in 2022, 100% of the share capital of each of five power transmission concessions (Argo V, VI,
VII, VIII and IX) were acquired from Brasil Energia FIP, in what was a joint investment by Argo Energia (62.5%)
and GEB (37.5%) on a co-governance basis between Redeia and GEB. Those five concessions are the
following:
•
Argo V, which operates 277 km of 500 kV power lines and four substations in the state of Bahía.
•
Argo VI, which operates 490 km of 230kV and 500kV power lines and seven substations in the north-
western states of Ceara and Río Grande del Norte.
•
Argo VII, which operates 836 km of 230kV and 500kV power lines and seven substations in the north-
eastern states of Piauí and Bahía.
•
Argo VIII, which operates 427 km of 500 kV power lines and three substations in the state of Sanguinetti.
Consolidated Management Report for 2024
9
•
Argo IX, which operates 436 km of 500kV power lines and three substations in the states of Bahia (north-
east), Minas Gerais (south-east) and Goiás (central-west).
The acquisition of all these concessions has increased Argo Energia's installed transmission capacity to 4,209
km and positioned it as a transmission leader in the market, with a strong presence in the north-east of Brazil,
one of the areas with the greatest potential for renewable power and most in need of transmission network
development in Brazil.
The transmission system availability rates for the various concessions through to 2024 are: Argo I 99.99%,
Argo II 99.24%, Argo III 99.53%, Argo IV 100%, Argo V 99.88%, Argo VI 99.94%, Argo VII 99.91%, Argo VIII
99.95%, and Argo IX 99.95%.
1.2 3 Telecommunications
Satellite business
The satellite telecommunications business used to be carried out through the Hispasat subgroup (hereinafter,
Hispasat). Redeia Sistemas de Telecomunicaciones, S.A.U., a subsidiary of Red Eléctrica Corporación, held
an 89.68% stake in Hispasat at year-end 2024.
As disclosed above, on 31 January 2025, a binding agreement was reached for the sale of the satellite
business, with the seller and buyer committed to bringing that transaction to a close in the coming months.
Fibre optic business
The Group's fibre optic business primarily operates in Spain, through its subsidiary Redeia Infraestructuras
de Telecomunicación, S.A. (hereinafter, Reintel), which is the Group company responsible for operating fibre
optic networks and rendering telecommunications services to third parties. The Group holds a 51% stake in
Reintel, with Kohlberg Kravis Roberts & Co. L.P. (KKR) holding the remaining 49% through its subsidiary,
Rudolph Bidco S.À.R.L.
Reintel is a neutral provider of telecommunications infrastructure. Its principal activity is leasing dark fibre and
associated infrastructure. Reintel also provides maintenance services for telecommunications equipment.
At present, this company operates a fibre optic network in excess of 53,851 km rolled out over the power
transmission grid and the railway network, with 43 points interconnecting the two networks, guaranteeing
transparent access on equal terms to its customers and to telecommunications sector players.
The fibre optic telecommunications business is performing well, with Reintel having forged a long-term
business relationship with Spain's main telecommunications players.
2.
Business and earnings performance
2.1
Key financial figures
Earnings: Revenue and share of profits of equity-accounted investees (with similar
businesses)
Revenue plus the Group's share of profits of equity-accounted investees (with similar businesses to that
of the Group) amounted to 1,647.5 million euros in 2024, down 12.4% from the 1,879.9 million euros
recognised in 2023. However, on a like-for-like basis, i.e., eliminating the effect of the assets that date to
before 1998 (260 million euros in total), the sum of revenue and the Group's share of equity investee profits
increased by 1.7% year-on-year.
The revenue performance by main business line was as follows:
•
Management and operation of national electricity infrastructure: revenue in this business amounted
to 1,396.3 million euros, down 14.1% year-on-year, due to lower revenue from the transmission business
Consolidated Management Report for 2024
10
(242.6 million euros) as the assets that date to before 1998 (the "pre-98 assets") have reached the end of
their regulatory useful lives. Revenue from system operation amounted to 4.1 million euros.
•
International electricity transmission: revenue plus the share of equity investee profits amounted to
136.0 million euros, year-on-year growth of 0.2%. The breakdown of that growth is as follows:
•
Revenue came to 83.5 million euros, compared to 74.4 million euros in 2023. The growth of 12.3% is
attributable mainly to healthy performances in Peru and Chile.
•
The Group's share of its international equity-accounted investees' profits totalled 52.4 million euros,
compared to 61.3 million euros in 2024, shaped by lower earnings at TEN (Chile) and Argo (Brazil),
the latter affected by exchange rate trends.
•
Fibre optic: at 148.3 million euros, revenue decreased a slight 1.1% from 2023 due to the renegotiation
of contracts in a very demanding market environment.
Other income: Other operating income and self-constructed assets
These two headings amounted to 168.9 million euros in 2024, annual growth of 38.1% from 122.3 million
euros in 2023.
"Self-constructed assets" amounted to 62.8 million euros, compared to 57.3 million euros in 2023, due
mainly to the start of new projects in Spain, partially mitigated by lower international construction volumes.
"Other operating income" includes the income related with the Chira-Soria pumped-storage hydropower
station, which the Group has been accounting for as a finance asset under IFRIC 12 Service concession
arrangements since December 2022. This accounting method implied the recognition of income of 93.6 million
euros in 2024 (82.1 million euros of revenue related with construction and 11.5 million euros derived from the
unwinding of the discount), compared to 57.8 million euros in 2023. The remainder of this heading amounted
to 12.5 million euros, up on the 2023 figure due mainly to higher income from insurance claims collected and
sundry other items of income.
Operating expenses
Operating expenses amounted to 606.3 million euros, down 2.3% from 2023. However, leaving aside the
expenses with offsetting entries in other operating income, operating expenses actually came down by 8.7%:
•
Growth in expenses with offsetting entries in operating income, mainly at Chira-Soria as a result of
progress on the construction work, as well as projects for third parties.
•
Other costs of sales and other operating expenses decreased by 60.6 million euros due to lower
maintenance costs related with the TSO assets, following completion of an extraordinary maintenance
plan in 2023, partly offset by higher expenses related with System Operator projects at the European level.
The year-on-year reduction in costs intensified year-on-year in the last quarter of the year as execution of
the above-mentioned maintenance plan was largely concentrated in the second half of 2023.
•
Employee benefits expense increased by 2.6 million euros due to a higher headcount, mitigated in part
by the non-recurring effect of the new collective bargaining agreements recognised in 2023.
The headcount at 31 December 2024 was 2,489 employees, compared with 2,477 at year-end 2023.
Meanwhile, the average headcount was 2,471, compared with 2,477 in 2023.
Earnings
EBITDA decreased by 12.4% year-on-year to 1,210.1 million euros in 2024, due primarily to the end of the
useful life, for regulatory purposes, of the pre-98 assets, as noted earlier. On a like-for-like basis, however,
i.e., eliminating the overall effect of the pre-98 assets, EBITDA was 7.8% higher than in 2023.
The trend in EBITDA by business is as follows:
•
Management and operation of national electricity infrastructure: EBITDA in this business amounted
to 976.2 million euros, a year-on-year decrease of 14.5%, due primarily to the impact of the pre-98 assets.
On a like-for-like basis, again eliminating the effect of the pre-98 assets, EBITDA was actually 11% higher,
thanks to more assets in operation and reduced costs.
Consolidated Management Report for 2024
11
•
International electricity transmission: EBITDA in this business amounted to 101.0 million euros, down
4.0 million euros (-3.8%) from 2023, due primarily to high non-recurring costs in Chile.
•
Fibre optic: EBITDA decreased by 1.4% from 2023 to 112.2 million euros, shaped by the above-
mentioned drop in revenue, coupled with flat operating expenses.
EBIT amounted to 761.4 million euros, down 20.5% from 2023. In addition to the above-mentioned trend in
EBITDA, the drop in EBIT was shaped by higher depreciation charges, mainly at Red Eléctrica, due to more
assets in operation.
The net finance cost widened by 18.9% to 85.7 million euros (net cost of 72.1 million euros in 2023). Finance
costs amounted to 143.6 million euros in 2024, annual growth of 22.4 million euros, driven mainly by a higher
average borrowing cost (from 2.11% in 2023 to 2.27% this year), as well as higher average balances. The
growth in finance costs was partially offset by growth in finance income, to 60 million euros, thanks to efficient
financial management of surplus liquidity.
Profit after tax for the year from continuing operations amounted to 526.8 million euros, down 23.7% from
the 690.1 million euros reported in 2023. On a like-for-like basis, eliminating the effect of the pre-98 assets,
profit for the year from continuing operations would have increased by 6.5%.
The Group reported a loss after tax for the year from discontinued operations of 138.2 million euros in
2024, compared to a profit of 29.5 million euros in 2023. This is mainly due the fact that the agreed sale of
Hispasat has implied the recognition of a loss for accounting purposes in the consolidated statement of profit
or loss for 2024 of approximately 137 million (after tax), which is the difference between the carrying amount
of the net assets of the satellite business in Redeia's consolidated financial statements (862 million euros)
and the agreed sale price.
The Group's effective corporate income tax rate was 22.0%, in line with that of 2023.
Lastly, profit for the year totalled 388.6 million euros, a decrease of 46.0% from 2023; profit for the year
attributable to equity holders of the parent amounted to 368.4 million euros (down 46.6% from 2023),
while the earnings attributable to non-controlling interests decreased by 9.9 million euros from 2023 due to
the impact of the sale of Hispasat. By business line, the trend in the profit attributable to equity holders of the
parent is as follows:
•
Management and operation of national electricity infrastructure: the profit for the year attributable to
this business amounted to 398.0 million euros, down 147.8 million euros from that of 2023, due mainly to
the impact of the pre-98 assets. Eliminating the effect of the pre-98 assets, this profit measure would have
increased by 13.5% in 2024.
•
International electricity transmission: 43.9 million euros versus 50.3 million euros in 2023, shaped by
the trend in EBITDA (outlined above), as well as higher finance costs.
•
Telecommunications: the loss after tax attributable to equity holders of the parent from this activity
amounted to 100.2 million euros, compared to a profit of 56.9 million euros in 2023, essentially reflecting
the impairment loss recognised on the sale of Hispasat.
Capital expenditure
In 2024, capital expenditure amounted to 1,172.8 million euros, with Redeia continuing to accelerate its
investment plan for the regulated Spanish market, exceeding its target of investing 1 billion euros during the
reporting period, fuelled by its duty to articulate the energy transition.
The investments related with the management and operation of national electricity infrastructure totalled
1,104.9 million euros, year-on-year growth of 34.0%, and were aimed at facilitating the energy transition in
Spain by paving the way for the integration of more renewable energy generation capacity. The breakdown
by business line:
•
Development of the national transmission grid: a total of 976.3 million euros of capital expenditure,
compared to 744.6 million euros in 2023, reflecting intensification of the effort to build new lines and
substations and upgrade assets, together with progress on the interconnections with other countries and
between the mainland and island systems.
•
In its capacity as System Operator, Redeia invested 34.5 million euros, up from 22.1 million euros in
2023.
Consolidated Management Report for 2024
12
•
Lastly, the Group invested 94.1 million euros in storage in the Canary Islands, compared to 57.8 million
euros in 2023, evidencing the progress being made on this important project.
Investment in the management and operation of international electricity infrastructure totalled 6.1 million
euros, compared to 5.9 million euros in 2023. The capital expenditure in 2024 includes the acquisition of a
control centre in Chile during the first quarter, among other items.
Investment in the fibre optic business amounted to 11.5 million euros, compared to 8.3 million euros in 2023,
in line with the capital expenditure plan.
Lastly, the Group invested 50.4 million euros in other areas, including in technology and corporate applications
for the Group and the investments made by Elewit, Redeia's private equity investment vehicle.
Cash flows
The main movements in cash flows in 2024 are analysed next:
Funds from operations (FFO), after tax, amounted to 1,187.4 million, up 15.6% from 2023, marked by
collection of the tax reimbursable in respect of 2022, in the amount of 193 million euros, related mainly with
the gain on the sale of Reintel, offset by lower pre-tax profits.
Changes in working capital implied a cash outflow of 231.7 million euros, compared to an outflow of 644.6
million euros in 2023, when the Group returned 564 million euros of surplus tariffs collected in prior years,
compared to a lower 183 million euros in 2024. The balance pending repayment at year-end 2024 stood at
around 220 million euros and is expected to be settled in the coming months.
Cash outflows for capital expenditure amounted to 1,172.8 million euros, up 33.7% year-on-year, driven
mainly by higher investment in the Spanish regulated electricity business.
The movement in other assets and liabilities amounted to 333.5 million euros, down 54.3% from the 730
million euros recorded in 2023. This change mainly reflects the fact that in 2023 this heading included the
proceeds from the hybrid bonds issued in January 2023 which implied the collection of 500 million euros. The
other items making up this heading in 2024 relate mainly to the first tranche of connection-related funding for
the underground interconnection with France in the amount of 200 million euros and other grants received
during the year associated with access points at Red Eléctrica. It also reflects dividend collections offset by
lease payments.
Dividends paid increased by 1.2% to 572.5 million euros.
The trend in these headings explains the increase in net debt of 394.4 million euros with respect to the year-
end 2023 balance.
Trend in net debt
Net debt stood at 5,369.9 million euros at year-end 2024, growth of 394 million euros from the year-end 2023
balance of 4,975.4 million euros, reflecting heavy investments throughout the year, partially offset by funds
from operations, grant collections and the deconsolidation of Hispasat's debt.
At year-end 2024, all of the Group's financial debt was non-current. 92% of the Group's debt carries fixed
rates, with the remaining 8% arranged at floating rates of interest.
The Group's average cost of debt was 2.27% in 2024, compared to 2.11% in 2023.
Gross debt averaged 6,198 million euros in 2024, compared to 5,649 million euros in 2023.
Redeia has pledged that 100% of its debt will be tied to ESG criteria by 2030. Evidencing its progress
towards achieving this target, at 31 December 2024, 69% of the Group's borrowings already included ESG
criteria, up from 59% at 31 December 2023.
Trend in equity
Redeia's equity stood at 5,260.1 million euros at 31 December 2024, down 269.0 million euros from the year-
end 2023 figure. The trend in this heading reflects the Group's retained earnings in 2024, the distribution of
dividends, translation differences and the movement in equity attributable to non-controlling interests.
Consolidated Management Report for 2024
13
2.2
Financial indicators
Thousands of euros
2024
2023
Chg. (%)
EBITDA(*)
1,210.1
1,381.8
(12.4)%
Capital expenditure(*)
1,172.8
876.9
33.7%
Net debt
5,369.9
4,975.4
7.9%
Equity
5,260.1
5,529.1
(4.9)%
Dividends paid(*)
572.5
565.5
1.2%
Leverage
50.5%
47.4%
6.62%
(*) The consolidated statement of profit or loss for 2023 has been restated to reflect the impact of the business classified
as a discontinued operation in 2024 under IFRS 5.
3. Liquidity and capital
The Group's liquidity policy is designed to ensure payment obligations are met, diversifying how financing
requirements are covered and when debt matures.
The Group's robust liquidity position allows for prudent liquidity risk management. This position is essentially
based on cash flow generation, mainly through regulated activities; sound management of collection and
payment periods; and the financial capacity obtained through short- and long-term credit facilities.
At 31 December 2024, the undrawn balance on credit facilities amounted to 2,014 million euros (2023: 1,676
million euros) while cash surpluses totalled 915 million euros (2023: 675 million euros). The average maturity
of the debt drawn down year-end was 4.7 years (2023: 4.5 years).
The Group's financial strategy is designed to mirror the nature of its businesses, at all times adhering to the
legislation in force. The activities conducted by the Group are very capital-intensive, with a large portion of
investments maturing over long periods. In addition, these assets are remunerated over long periods of time,
which is why the Group's debt is primarily long-term and fixed-rate. The Group's strategic commitment to long-
term, enterprise-wide sustainability is also present in its responsible and transparent management approach,
which promotes sustainable sources of financing.
Consolidated Management Report for 2024
14
The Group's capital structure policy ensures a financial structure that optimises the cost of capital through a
sound financial position, effectively balancing the generation of value for shareholders with competitive costs
of financing. Capital is periodically monitored through the leverage ratio, which in 2024 stood at 50.5% (47.4%
in 2023). This ratio is calculated as net debt divided by equity plus net debt.
To maintain and adjust the capital structure, the Parent can adjust the amount of dividends payable to
shareholders, reimburse capital or issue new shares.
4. Risk management
Redeia has a Comprehensive Risk Management System in place designed to ensure that any risks that could
affect the achievement of its strategies and objectives are systematically identified, analysed, assessed,
managed and controlled, framed by uniform criteria and within the established risk levels, in order to facilitate
compliance with the Group's strategies and objectives. The Comprehensive Risk Management Policy was
approved by the Board of Directors of the Group's Parent. This Comprehensive Risk Management System,
the Policy and the General Procedure regulating it are based on the COSO ERM (Committee of Sponsoring
Organizations of the Treadway Commission) Enterprise Risk Management - Integrated Framework).
The ERM system is implemented in accordance with ISO 31000 on risk management principles and
guidelines, which is comprehensive and ongoing in nature. Risk management is also strengthened at the
business unit, subsidiary, support area and corporate levels.
The end-to-end risk management and control policy and procedure define the various duties of the governing
bodies and those of each organisational unit, as well as the information flow and activities to be performed.
4.1 Corporate risks
The types of risk to which the Group is exposed (corporate risks) as regards the achievement of its strategies
and objectives can be classified as follows:
Strategic risks
– Risks related to the regulatory framework in which the Group operates.
– Business risks associated with the business context itself or with decisions of a strategic nature.
– Risks related to sustainability and good governance.
Consolidated Management Report for 2024
15
Operational risks
– Risks associated with planned assets and/or those in progress.
– Risks associated with assets currently in service.
– Risks relating to information systems.
– Risks relating to personnel and their organisation.
– Compliance risks.
Financial risks
– Market risk.
– Risks related to Redeia's solvency
– Counterparty risk.
– Underwriting risks.
The Corporate Risk Map depicts the Group's most significant risks and is prepared on the basis of a bottom-
up methodology, whereby the risks are identified, analysed and assessed by the different organisational units
before being escalated for validation by the executive officers, general managers and corporate heads, until
such time as they are ultimately presented to the Chair of the Group, the Executive Committee, the Audit
Committee and the Board of Directors.
The main risks to which the Group is exposed and that could affect achievement of its objectives are regulatory
risk, including tax risks, in as much as the Group's principal business lines are subject to regulations,
operational risk, primarily arising from the activities carried out in the electricity and telecommunications
sectors, financial risk, market risk and environmental risk.
The Comprehensive Risk Management Policy includes the policy for controlling and managing tax risks. It
also covers financial risk management, as described in the note in the consolidated annual financial
statements on the Group's financial risk management policies.
Redeia's Sustainability Report provides further details of the Group's main risks at present, as well as risks
which could emerge in the future.
4.2
Climate change risks
The Group also manages climate change risks and opportunities in accordance with the recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD). Aside from reviewing the governance
criteria, the Group has specific methodology for prioritising these criteria and quantifying their economic
impact, which has been implemented on the basis of various scenarios.
Governance
Climate change risk management is built into the Group's broader risk management and such risks are subject
to the same governance model, as described above. The pertinent risks are included in the Corporate Risk
Map.
In addition to being supervised by the Audit Committee of the Board of Directors, as part of its oversight role
over the end-to-end risk control system, climate risks and opportunities are passed on to the Board's
Sustainability Committee. This Committee's duties include reviewing the corporate responsibility and climate
change policies to enable decision-making based the results of the risk and opportunity analysis.
The strategic plans incorporate lines of action, objectives and high-level responsibilities in relation to climate
change. The business areas set out goals, actions and specific responsibilities in their operational plans in
order to keep exposure to climate change risks within acceptable levels.
Consolidated Management Report for 2024
16
Identifying and quantifying risks and opportunities
Climate change risks and opportunities comprise both physical risks and opportunities derived from changes
in climate variables (which could have a direct effect on the facilities or on the services rendered by the Group)
and transition risks and opportunities (related to changes stemming from the fight against climate change:
technological, market and reputational).
Redeia has specific methodology in place for the identification, ranking and economic quantification of its
climate risks.
As prescribed in the TCFD recommendations, the analysis is carried out taking into account various physical
and transition scenarios:
•
The physical scenarios considered are as set out in the Assessment Report AR52 of the
Intergovernmental Panel on Climate Change (IPCC) (Representative Concentration Pathways RCP 2.6,
RCP 4.5 and RCP 8.5). Projections by the Spanish meteorological office (AEMET) in the case of Spain
and by the World Bank in the case of Latin America have been used to adjust the climate variable values.
•
Scenarios published by the International Energy Agency (IEA) in its WEO-2023 report are used as a
reference for transition scenarios. These scenarios are fleshed out with additional information referring to
relevant factors based on the business and geographical area. In the case of electricity business risks in
Spain, the scenarios included in the National Energy and Climate Plan (NECP) (trend and target
scenarios), which correspond to the International Energy Agency's STEPS and NZE2050 scenarios, are
used.
Transition risks and opportunities are analysed over the short, medium and long term. The economic impact
or monetisation of the risks is quantified for a period of 10 years. The process of identifying and quantifying
risks and opportunities is reviewed and updated at least annually.
Conclusions: Material risks and opportunities
The following risks could materialise in the short and medium term:
Physical risks:
•
Damage caused to overhead power lines by extreme winds.
•
Fire damage caused to power lines and substations.
The impact of these risks would materialise as damage to infrastructure, with or without affecting the
electricity supply; an increase in maintenance costs, affecting third parties or the environment; and
impacts on reputation.
The rollout of specific projects and the application of different adaptation measures, including
insurance policies significantly reduce the estimated economic impact of these risks, which does not
exceed 2% of Group profit.
•
Decline in water availability for hydroelectric generation.
Were it to materialise, this risk would affect the operation of the electricity system by effectively
reducing power availability, lack of firm capacity and lack of resources for pumping (flexibility
mechanism). It would have no financial impact.
Transition risks:
•
Insufficient information for the real-time operation of the system due to an increase in renewable
generation facilities with outputs below 1 MW (current observation threshold set by the System
Operator).
•
Power disconnections due to a prevalence of renewable energy facilities within the power mix without
the technical capabilities needed to cope with disturbances.
2 IPCC Fifth Assessment Report (2014), which is drawn up by scientists from different countries. RCP 4.5 is a target scenario and RCP 8.5 is a trend
scenario, in which further changes in climate parameters are envisaged.
Consolidated Management Report for 2024
17
•
Additional restrictions on renewable energy production and incidents that could affect supply
security in the Canary Islands, due to the significant rise in the share of renewable energies in the
energy mix forecast for future years.
•
Loss of firm generation capacity due to the closure of conventional power plants.
The impacts of these risks include increased difficulties with regard to system operation, further caps
on production and additional technical constraints, and a possible effect on supply, which could in turn
Redeia's reputation.
Red Eléctrica is working hard to integrate renewables into the electricity system safely, thus
minimising the probability of materialisation and impact of these risks.
•
Stricter legal requirements governing the use of fluorinated gases (SF6).
The new requirements could lead to a rise in taxes associated with the use of gas, as well as increased
management and maintenance costs to ensure that new requirements are met. Restrictions on the
use of gas could also entail technical problems and high costs.
It should be noted that Redeia has implemented a raft of measures to minimise SF6 leaks, and to roll
out projects focused on sourcing alternative solutions. Notably, Redeia is involved in work groups and
legislative processes, and continues to collaborate closely with the authorities, all of which significantly
helps to anticipate risk.
•
Long lead time in commissioning the infrastructure needed for the energy transition: international
interconnections.
To meet the objectives of the energy transition, the transmission network has to be further developed.
However, due to social aversion to this type of infrastructure and the long waits to obtain the necessary
authorisations for its development, there could be difficulties in bringing the required facilities into
service.
To reduce this risk, preliminary studies are key in analysing the viability of the infrastructure proposed
in the planning process. Numerous programmes have also been implemented relating to management
of stakeholders and public engagement, together with other projects to improve infrastructure
development processes, such as planning the materials supply and service requirements.
•
Overload of grid access procedures due to high interest among renewable generation developers and
consumption and storage facilities.
Procedural setbacks can lead to an increase in claims and lawsuits that could result in sanctions or
negatively affect the Group's reputation. To reduce this risk, the Group is firmly committed to making
further progress in digitalising and automating processes and collaborating more with the regulator in
improving levels of regulatory support.
Thanks to all these actions to address the various risks, the annual economic impact estimated for these
transition risks would be less than 2% of Group profit.
Opportunities:
Energy transition policies provide huge opportunities for the Group, connected to the development of
infrastructure to make the transition possible.
•
Development of the existing network: integration of new renewable energy capacity, interconnections,
high-speed trains and support for increased electrification of society (investment in lines, substations,
interconnections, protection systems and other network infrastructure control and monitoring
equipment).
•
Development of storage in non-mainland systems.
•
Development of infrastructure for the energy transition in Latin America.
Consolidated Management Report for 2024
18
Moreover, new telecommunications business opportunities have been identified in the areas of
digitalisation and increased connectivity.
Lastly, the Group's improved performance in mitigating and adapting to climate change is expected
to be a boon for its reputation and could lead to:
•
Better financing opportunities and/or a higher stock price.
5.
Disclosures regarding average supplier payment term. Additional
Provision Three - "Disclosure requirements" under Law 15/2010, of 5 July
2010
In accordance with the Spanish Accounting and Auditing Institute (ICAC) resolution of 29 January 2016
regarding the disclosures that must be provided in the notes to the annual financial statements regarding the
average supplier payment period in commercial transactions, the average supplier payment period in the case
of the Spanish Group companies was 44 days at year-end 2024 (44 days in 2023).
The disclosures required under this resolution are contained in note 21 of the Group's consolidated financial
statements for 2024.
6.
Events after 31 December 2024
On 31 January 2025, Redeia, through its subsidiary, Redeia Sistemas de Telecomunicaciones S.A.U., agreed
to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat S.A. to Orbitude, S.L.U, a
wholly-owned subsidiary of Indra.
The agreed sale price for that 89.68% interest in Hispasat is 725 million euros. The transaction, which is
subject to approval by Spain's Council of Ministers, the anti-trust authorities and other regulators, is expected
to close in 2025. Refer to notes 1 and 5 of the consolidated financial statements for 2024.
7.
Outlook
As regards the management of its different businesses, Redeia plans to continue to implement its model
articulated around balancing two major lines of action: operations subject to market risk which offset the
concentration of regulatory risk; and regulated operations which offset market risk. Along these lines, it will
continue to perform the role of Spanish Transmission System Operator (TSO), helping to make the energy
transition in Spain a reality; continue to foster connectivity as a leading operator of fibre optic
telecommunications infrastructure; consolidate its international business; and invest in technological
acceleration and innovation.
Executing the strategy, underpinned by efficiency, digital transformation and personnel development, will
enable the Group to adapt to the new, stricter regulatory and remuneration environment, and to generate more
ways of creating value.
Redeia will work on guaranteeing electricity supply and connectivity and upholding its commitment to
maximising value for its shareholders, offering an attractive dividend yield and generating value through
efficient management of its activities, weighing up alternatives for growing the business and maintaining a
sound capital structure. To do so, it will continue to pursue long-term value creation, promoting a fair ecological
transition based on sustainability principles and contributing to social and regional cohesion.
Consolidated Management Report for 2024
19
Redeia continues to make inroads on delivering its 2030 Sustainability Commitment and maximising its
contribution to the achievement of global targets, chief of which are the United Nations Sustainable
Development Goals (SDGs). It will increase its social and environmental contributions across all the
geographical and business areas in which it deploys its infrastructures, maximising the positive impact beyond
its investment projects and providing solutions to the structural challenges that perpetuate territorial,
generational, gender and digital inequality.
7.1
Outlook for the management and operation of national power transmission
infrastructure
Advancing in regulated activities, aimed at making the energy transition in Spain a reality, primarily pursuing
the following lines of initiative:
•
Integration of new renewable sources of generation into the electricity system, supporting the shift toward
emissions-free power generation and delivering greater energy efficiency.
•
Placing the user at the centre of the electricity system, providing new services for an increasingly
demanding and discerning user in terms of data and information.
•
Developing storage based on the management needs of the system in order to implement a more flexible
electricity system.
•
Digitalisation and the rollout of smart grids, proposing new technological solutions to maximise the use of
transmission assets.
•
Achieving a higher degree of interconnection, furthering integration with the European market and
improving the functioning of the non-mainland systems.
These challenges will require a significant level of investment in the transmission grid in the years to come,
with a sharp focus on technology, all of which deployed in an increasingly stringent regulatory and
remuneration environment.
Redeia will ensure its financial policy is in line with the remuneration regime for transmission activities, which
involves maintaining a suitable financial structure to safeguard the Group's financial solvency, complying with
the ratios laid down by the Spanish National Markets and Competition Commission (CNMC) and keeping a
robust credit position.
7.2
Outlook for the management and operation of international electricity
infrastructure
The Group will continue to focus its international business activity on strengthening its presence in its current
international markets, specifically Peru, Chile and Brazil, as a way to diversify business.
It will also continue to explore viable and alternative financing streams at opportune market junctures in order
to optimise the Group's capital structure and as a way of expanding the business.
7.3
Outlook for telecommunication activities
The telecommunications activities carried out by Reintel, as a provider of telecommunications infrastructure,
will focus on the backbone fibre network market, specifically the lease of dark fibre and related infrastructure
to telecommunications sector players.
The incorporation of KKR as a strategic shareholder in 2022 will enable Reintel, in the long term, to benefit
from growth opportunities and maximise its capacity to generate value from its telecommunications business.
Reintel continues to implement its commercial plan and undertake the investments requested by customers,
while also broadening its portfolio of fibre products in a bid to increase its revenues. Meanwhile, it is making
progress in interconnecting rail and electricity fibre networks with the aim of offering new solutions to
Consolidated Management Report for 2024
20
customers, such as new redundant sources and access points, without ever neglecting the high standards of
service that it provides to its customers.
7.4
Other activities
When it comes to innovation, Elewit will help the Group to consolidate its commitment to innovation,
entrepreneurship and technological development, which are the cornerstones of sustainability against a
backdrop of transitions in both the energy and telecommunications sectors.
Through Elewit, Redeia will harness the potential of technology to further its various businesses and pursuits,
while also exploring new value-added businesses. The Group will focus on initiatives focused on new
technology verticals, such as cybersecurity, energy, AI and advanced analytics, Industry X.0, the Internet of
Things (IoT), new communication technology, the platforms and networks of the future, and any other
technology-driven opportunities is detected in the course of its constant screening of and interaction with the
technology ecosystem.
Ultimately, Elewit will enable Redeia to forge stronger ties with society, increase the availability of its
infrastructure, strengthen system security, maximise integration of renewable energies and use of its assets,
enhance the efficiency and sustainable management of its assets, and improve the health and safety of
people.
8.
Innovation
Redeia continued its efforts to innovate in 2024, managing a total of 63 innovation projects entailing total
expenditure of 8.2 million euros during the year. It also invested 3.7 million euros in startups, bringing the total
invested in innovation and technological development to 11.9 million euros.
In 2024, Elewit continued to roll out all the necessary tools to capture and bring to fruition initiatives/projects
at any stage of maturity that could further improve innovation at Redeia. One of its ambitions is to have a
balanced portfolio of initiatives in terms of stage of technological maturity, thus providing both operational
innovation that can be swiftly applied to businesses/activities, and more disruptive innovation linked to the
technology required to address the challenges of the ecological transition and connectivity.
Along these lines, the achievements over the course of the year can be grouped as follows:
•
Venture Client programmes: Organisation of the fifth edition of the Venture Client programme marked by
the performance of four pilot tests with four different startups, focused on developing and quickly testing
new solutions for enhancing management of cybernetic risks, restoring marine ecosystems and
biodiversity, optimising operations and work flows and developing electric line coatings capable of
increasing energy transmission.
•
Corporate Venture Capital (CVC): ongoing configuration of a portfolio of innovative technology companies.
In 2024, the portfolio welcomed Unusuals (a Spanish startup devoted to the development of AI-based
software that digitalises the visual inspection of critical infrastructure assets) and Splight (an American
startup that leverages artificial intelligence to facilitate greater penetration of renewable energy in the
electricity system value chain). Key milestones in 2024 included the first close by the energy transition
fund; the first co-investment with another TSO (the investment in Unusuals); and the reinforcement of
Elewit's international footprint, specifically its presence in the innovation ecosystems of the US, Latin
America and Europe.
•
Ecosystem creation: further progress was made throughout 2024 on building an ecosystem that will
ultimately unlock a large number of technological opportunities. In keeping with Redeia's Strategic Plan,
the priorities in 2024 were the artificial intelligence and communication verticals. This meant arranging
new models for engaging with allies, partners and employees to empower them to contribute to the
creation of new venture and investment opportunities that fit well with the key challenges around
Consolidated Management Report for 2024
21
technological innovation. Redeia works closely with more than 100 different innovation agents
(entrepreneurs, investors, universities, research and technology centres, other corporations, opinion
leaders, etc.) so as to ensure a constant supply of new ideas and knowledge. With a view to correctly
managing and measuring the value contributed by these external partners, in 2024 an impact
measurement model was devised for tracking the various collaboration mechanisms rolled out by Elewit;
this model has made it possible to quantify the value generated by this company and will provide valuable
input for the decision-making process.
•
Intrapreneurship: the third edition of the Intrapreneurship programme was launched in 2024: four projects
were selected, two of which have obtained financing and six more months to develop a minimum viable
product (MVP) and validate its potential, while the other two were given a further three months to validate
the ideas put forward. SafeLightning – Additional safety in earthing (Red Eléctrica); Downloads App (Red
Eléctrica); and Spare Parts Marketplace (Redeia's Procurement Dept.). The programme evaluated
another two projects which were channelled through the corporate departments involved.
•
New Ventures: this initiative, conceived of to propel investment in startups tapping the market opportunities
created by new technology, permitted the execution of three initiatives:
◦
SafeDelimit. This venture, launched under the umbrella of the first edition of the Intrapreneurship
programme, provides a laser-based solution for delimiting and protecting access by people and
industrial vehicles to identified risk areas, has now been incorporated as a fully-fledged company:
SafeDelimit S.L. Elewit closed its investment in this startup in September.
◦
The programme also facilitated the materialisation of value from the EngineeringNow venture derived
from the second edition of the Intrapreneurship programme (a solution for digitalising engineering
processes in the electricity sector).
◦
The third initiative concerns crystallisation of the venture for the development of a SO2 sensor that
can detect the decomposition of SF6 insulating gas and thereby detect possible leaks from the assets
that use it. This venture, developed by Red Eléctrica, will give rise to a new company that will
industrialise, market and sell the sensor. The new company will be owned by Elewit, REDIT Ventures
and the Electric Technology Institute (ITE) with Elewit capitalising the intellectual property generated
via this venture.
•
Tech Innovation Lab: the Lab aims to catalyse innovation at Redeia by enabling the introduction and swift
adoption of disruptive technologies that are built into the innovative technological solutions being
developed, thus ensuring the success of the innovation process from start to finish. In order to finance
and promote the development of major projects, in 2024, Redeia relied on the support for innovation
available from various public bodies under public-private partnerships. In 2024, the Group managed 16
R&D projects as part of public-private partnerships: six were managed by Elewit, including one new R&D
project which Redeia was awarded in 2024 (InterSCADA), and 10 were managed by Hispasat.
A total of 13 innovative technology solutions were adopted in 2024 from among the 63 projects undertaken.
Among the latter, it is worth highlighting: the development of renewable generation prediction models
(CONVOL); improved prediction of electricity self-consumption (TERRAL and ETESIAN); fine-tuning of
the predictive analysis of inter-area oscillation dampening (TALOS); the replacement of commercial
applications for the performance of planning studies to make use of new load flow or system optimisation
studies (SIROCO); the digitalisation and real-time management of assets at substations (ASUMO); and
efficiency gains at aerial line inspections leveraging technological developments and the redesign of data
management processes (DALIA -Detecting Anomalies in Lines Inspection Autonomously).
•
Project Management Office: monitoring of the innovation funnel, with more than 100 initiatives received,
63 projects ongoing, and 13 innovative technological solutions adopted in 2024.
•
Unlocking value: Elewit continued to work to identify projects that could lead to solutions for
implementation both within and beyond the Group. Work was also ongoing on monetising the solutions
generated via innovation projects. This activity is undertaken with the support of key partners for each
Consolidated Management Report for 2024
22
project who are capable of bringing the solutions to market and compensating Redeia via favourable
procurement terms, royalties or sales commissions.
In 2024, a number of commercialisation and outreach initiatives stood out. Most notable were the efforts to
spark familiarity with the solutions in Latin America by working in coordination with Redinter, presenting
solutions at events such as the so-called International Business Round, organised by COCIER in Bogota, and
Expo Energy Peru 2024 in Lima. Elewit also collaborated closely with Aerolaser to promote DALIA in Peru,
Chile, Uruguay, Colombia and Brazil. One of the most important events of 2024 was CIGRE, a biennial event
that brings together the main global electricity players, in which our partners, Ampacimon and Arteche had the
opportunity to present PDEye and ZEPAS. These initiatives were complemented by seminars organised with
companies such as GEB (Colombia) and SAESA (Chile) where solutions and projects were presented and
demonstrated.
That effort made it possible to launch DALIA offers for UTE (Uruguay) and TEN (Chile), and PDEye offers for
TEN (Chile) and to offer the innovation services provided by Elewit (InnaaS – Innovation as a Service) to the
ERIA Estabanell Innovation Hub. Acceptance of the offers presented in prior years led to implementation of
DALIA at ARGO (Brazil) and UTE (Uruguay).
As for firm agreements derived from innovation efforts, in 2024, an RDI agreement was signed with the firm
Unusuals in relation to the DALIA project. This venture, framed by the artificial intelligence technology vertical,
is developing synthetic images in order to automatically improve identification of anomalies in aerial lines. The
RDI agreement includes a profit-sharing arrangement whereby Red Eléctrica benefits from discounts and
Redeia can capture royalties.
9.
Own shares
At a meeting on 31 March 2020, the Company's Board of Directors decided to suspend own share transactions
as of 14 April 2020, except where such transactions relate to employee remuneration.
Consequently, only one transaction took place in 2024, involving the sale of 440,075 own shares associated
with Group employee remuneration. The shares sold had a par value of 0.22 million euros and a cash value
of 7.3 million euros.
At 31 December 2024, the Company held own shares representing 0.12% of its share capital; more precisely,
it held 671,942 shares with a par value of 0.50 euros per share and an aggregate par value of 0.34 million
euros, which it acquired at an average price of 17.53 euros per share (note 13 to the consolidated financial
statements) and a year-end market value of 11.1 million euros.
The Parent has complied with the requirements of article 509 of the Spanish Companies Act, which provides
that the par value of acquired shares listed on official secondary markets, together with those already held by
the Parent and its subsidiaries, must not exceed 10% of the share capital. The subsidiaries do not hold any
own share or any Parent company shares.
10.1 Stock market performance and shareholder return
All of the shares in Redeia Corporación, S.A., the Group's listed company, are quoted on the four Spanish
stock exchanges and are traded through the Spanish automated quotation system.
The Company is also part of the IBEX 35 index of blue chip stocks, with a weighting of 1.51% at year-end
2024.
10. Other relevant information
Consolidated Management Report for 2024
23
At 31 December 2024 and 2023, the Company's share capital amounted to 270.5 million and was represented
by 541,080,000 shares, with a unit par value of 0.50 euros, all of which were fully subscribed for and paid up.
At year-end, the free float was 70.22%; 20% of the Company's shares were held by the state industrial holding
company, SEPI for its acronym in Spanish, 5% by Pontegadea Inversiones, S.L.[2], 4.46% by Blackrock
(corresponding to the percentage of voting rights attached to the shares) and 0.13% were in the hands Board
members or held as treasury stock.
The shareholder structure is as follows:
[2] Amancio Ortega Gaona directly holds 99.99% of the voting rights of Pontegadea Inversiones, S.L.
– 68.16% of the shares are in the hands of foreign and domestic institutional investors.
– The state industrial holding company, SEPI, holds 20% of the shares.
– Retail investors account for 11.71% of share capital.
– The Company's treasury stock and shares held by other members of the Board of Directors account
for 0.13%.
Redeia's share price stood at 16.50 euros at the close of trading on 31 December 2024. The share price
gained 10.7% over the course of 2024, buoyed by the downtrend in interest rates throughout the year and the
upcoming regulatory review of the electricity transmission businesses, which is expected to yield more
favourable parameters, coupled with the high levels of capital expenditure anticipated in the regulated
business in the coming years. The share price fluctuated between a high of 17.59 euros, on 27 September
2024, and a low of 14.40 euros, on 9 February 2024.
A total of 283.8 million shares were traded on the Spanish continuous market during the year, which is
equivalent to 52.5% of the total outstanding. Cash transactions amounted to 4,613.9 million euros.
10.2 Dividend policy
Redeia's dividend policy is outlined in its 2021–2025 Strategic Plan, which initially envisioned a dividend
payment of 1 euro per share until 2022, and a floor of 0.80 euros per share from 2023. The Group's stronger
financial situation - largely thanks to the sale of a stake in Redeia Infraestructuras de Telecomunicación -
allowed it to raise shareholder remuneration to 1 euro per share in 2023.
Consolidated Management Report for 2024
24
The dividends paid in 2024 out of prior-year profit amounted to 539.97 million euros.
The dividend paid out of 2024 earnings proposed by the Board of Directors and pending approval by the
shareholders at the Annual General Meeting amounts to 0.80 euro per share.
That dividend will be paid in two instalments: an interim dividend already paid in January 2025 and a final
dividend payable halfway through the year once the financial statements have been approved at the Annual
General Meeting.
10.3 Credit ratings
On 12 April 2024, Standard & Poor's issued a report reiterating the most recently assigned credit ratings and
outlook. Specifically, the Parent, Redeia Corporación, and its subsidiary, Red Eléctrica, both hold long-term
ratings of A- and short-term ratings of A-2, with a stable outlook.
On 8 October 2024, Fitch Ratings ratified the Parent's long-term rating of A- with a stable outlook. As a result,
the Parent and Red Eléctrica currently hold long-term ratings of A- and short-term ratings of F1 from Fitch
Ratings, all with a stable outlook.
10.4 Excellence
Redeia has a Policy of Excellence, which was updated in 2021. It sets out the Company's principles and
commitment to excellence in management and is focused on the creation of sustainable value that meets or
surpasses the requirements and expectations of the stakeholders present within Redeia's ecosystem, acting
as a lever for achieving truly excellent results both now and down the line.
In 1999, the Company adopted the EFQM (European Foundation for Quality Management) excellence
management model as a tool to improve management, under which external assessments are performed on
a regular basis. In 2022, Redeia arranged for an external assessment of Redeia Corporación and Red
Eléctrica de España in accordance with the EFQM 2020 model, obtaining a score of above 700 points and
earning, in the process, the EFQM 700+ Seal of Innovation and Sustainability Excellence. Following this
assessment, the model will be expanded to cover Redeia's other business activities. Work began in 2023 to
expand the model to cover Reintel and Redinter and continued throughout 2024.
Redeia also has quality assurance systems certified under ISO 9001 in place at the Parent and the main
Group subsidiaries. In 2024, Reintel obtained ISO 9001 certification, so joining Redeia's multisite certificate.
Redeia also boasts certification under international standard UNE-ISO 19650-1 and 2 for its information
management systems in building and civil engineering works. Notably, it is following the BIM (Building
Information Modelling) collaborative work methodology as it builds the Salto de Chira pumped-storage
hydropower station in Gran Canary Island.
Consolidated Management Report for 2024
25
11. Consolidated non-financial information statement and
sustainability information for 2024
11.1 GENERAL INFORMATION
11.1.1 AN INTRODUCTION TO REDEIA
11.1.1.1 About this report
a. Adaptation to the European Corporate Sustainability Reporting Directive (CSRD)
Redeia's consolidated non-financial information statement and sustainability information (hereinafter,
the Sustainability Statement) provides a transparent, faithful and balanced account of the Group's
performance in 2024, focusing on the topics identified as material.
This report covers the disclosure requirements related with those material topics and the impacts, risks and
opportunities associated with Redeia's value chain, as required under the new European Sustainability
Reporting Standards (hereinafter, the ESRS) set down in Directive (EU) 2022/2464 of the European
Parliament and of the Council of 14 December 2022 as regards corporate sustainability reporting
(hereinafter, CSRD).
11.1.1.2 About Redeia
a. General basis for preparation BP-1
As regards the contents of this Sustainability Statement and in keeping ESRS 1, section 7.7 Classified and
sensitive information, and information on intellectual property, know-how or results of innovation, the Group
has not omitted any specific piece of information corresponding to intellectual property, know-how or the results
of innovation; nor has it used the exemption from disclosure of impending developments or matters in the
course of negotiation, as provided for in articles 19a(3) and 29a(3) of Directive 2013/34/EU.
i.
Scope of consolidation
The Sustainability Statement contains relevant information about the management approach, actions and
performance of all of Redeia's activities. The scope of consolidation is the same as that of the consolidated
financial statements. Those consolidated financial statements detail the Group's corporate structure (refer to
Appendix I of the consolidated financial statements of Redeia Corporación S.A. and subsidiaries). Whenever
the information reported does not cover the full scope, the actual reporting scope is disclosed in the
corresponding chapter. In those instances in which any of Redeia's investees are taken into consideration,
this is specified where appropriate. With respect to the investees accounted for using the equity method
(ARGO and TEN), note that these investments are referred to in the Scope 3 calculations.
In keeping with Spanish Law 11/2018, the subsidiaries of Redeia Corporación, S.A. in Spain are exempt from
drawing up a non-financial information statement as all of the required information is included in this
consolidated Sustainability Statement of the parent undertaking, as provided for in articles 19a and 29a(8) of
Directive 2013/34/EU.
26
26
Consolidated Management Report for 2024
ii.
Value chain
This Sustainability Statement covers both Redeia's own operations and those of its value chain to the extent
the available information so permits, considering the operations carried out by actors (persons and entities)
upstream and downstream. For further information about the value chain, refer to section 1.2.1 Double
materiality assessment process.
To carry out its double materiality assessment, which includes the identification and assessment of impacts,
risks and opportunities, the Company used the methodological approach prescribed in ESRS 1. To do so, it
screened all of its site locations and business activities to determine the actual and potential ESG-related
impacts, risks and opportunities connected with its own operations and its value chain, upstream and
downstream.
Note that Redeia's policies, actions and targets extend to its value chain to the extent there is any kind of
relationship with the various actors.
b. Disclosures in relation to specific circumstances BP-2
i.
Time horizons
Redeia has defined its own time horizons linked to the action plans it has implemented, specifically defining
the following horizons:
•
Short-term: the current reporting period (from 1 January 2024 to 31 December 2024).
•
Medium-term: the time horizon until 2030 (from 1 January 2025 to 31 December 2029).
•
Long-term: the time horizon from 2030 (from 1 January 2030).
ii.
Value chain estimation
Redeia has considered all relevant facts and circumstances, including information about low-probability and
high-impact outcomes, which, when aggregated, could become material, on the basis of currently available
information.
iii.
Sources of estimation and outcome uncertainty
The performance indicators provided in the Sustainability Statement are not based on assumptions or
estimates.
However, in the disclosures about possible future events, assumptions and estimates were used. Therefore,
the actual results could differ from those estimated as they refer to the future and future events are subject to
uncertainty.
iv.
Changes in preparation or presentation of sustainability information
So that Redeia's main stakeholders and users can get an understanding of the Group's development,
performance, position and impact of its activity relating to the matters covered in this year's Sustainability
Statement, the necessary references to last year's information, set out in its Non-Financial Information
Statement, are provided throughout this report. For a better understanding of the comparative information in
that statement, the following circumstances should be considered:
•
At the time of authorising this report, the Group's Management Report includes, among other information,
the Non-Financial Information Statement (which in turn includes the sustainability information). The draft
Spanish legislation for transposing Directive (EU) 2022/2464 of the European Parliament and of the
Council of 14 December 2022 as regards corporate sustainability reporting (the CSRD) into Spanish law
is not yet complete.
Consolidated Management Report for 2024
27
•
Redeia has opted to follow the recommendations issued by Spain's securities market regulator, the CNMV,
and its accounting and auditing institute, the ICAC, as per their joint statement of 27 November 2024,
urging voluntary compliance with the CSRD disclosure requirements and the ESRS, while additionally
meeting their disclosure requirements under Spanish Law 11/2018 insofar as not covered by the CSRD;
those additional disclosures are provided in Appendix 2.
Considering all of the above, the exceptional current circumstances, the timing of recent developments and
the complexity of adjusting the information gathering and consolidation processes followed last year for the
new criteria prescribed in the ESRS, Redeia has provided in this statement, in the instances in which it was
not practical to present the comparative information in accordance with the new criteria, the 2023 figures in
keeping with the criteria used to prepare the 2023 Non-Financial Information Statement, along with the
information and explanations needed to allow stakeholders and users to understand the Group's development,
performance, position and impacts under the newly applied criteria.
Elsewhere, specifically in relation to the sustainability information, prepared in accordance with the basis for
preparation of the ESRS, Redeia has opted to use the transitional provision related to section 7.1 Presenting
comparative information of ESRS 1 - General requirements, by virtue of which, to ease the first-time
application of ESRS 1, undertakings are not required to disclose the comparative information required by the
said section 7.1 in the first year of preparation of the sustainability information under the ESRS.
Note, lastly, that on 31 January 2025, Redeia, through its subsidiary, Redeia Sistemas de Telecomunicaciones
S.A.U., agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat for 725 million
euros. The transaction, which is subject to approval by Spain's Council of Ministers, the anti-trust authorities
and other regulators, is expected to close in 2025. As a result, on 31 December 2024, the assets and liabilities
belonging to the satellite telecommunications segment carried out by the Hispasat subgroup, whose parent
company is Hispasat S.A. and which is controlled by Redeia through its 89.68% shareholding, have been
classified as non-current assets held for sale. For the purposes of this Sustainability Statement, Hispasat is
part of the scope of consolidation and in the instances in which references are made to the consolidated
financial statements, disaggregated figures are provided to ensure consistency with the disclosures in those
statements.
v.
Reporting errors in prior periods
As this is the first year reporting the Sustainability Statement under the ESRS Standards, this requirement
does not apply.
vi.
Disclosures stemming from other legislation or generally accepted sustainability
reporting pronouncements
Redeia has drawn up this Sustainability Statement in accordance with the CSRD and its applicable ESRS
Standards, making the disclosure requirements established in that regulatory framework.
Appendix 2 was prepared in accordance with the provisions of Spanish Law 11/2018, of 28 December 2018,
regarding non-financial and diversity information, in keeping with its current obligations around transparency
and sustainability.
11.1.1.3 Governance
a. The role of the administrative, management and supervisory bodies GOV-1
The governance and administration of Redeia Corporación, S.A. (the "Company" or the "Parent" and
together with the companies it controls, directly or indirectly, the "Group" or "Redeia") are tasked to the
Annual General Meeting and the Board of Directors.
At 31 December 2024, the Company's share capital comprised 541,080,000 shares represented by book
entries, all of the same class and series, with a unit par value of 0.50 euros, all subscribed for and paid in.
They are traded on Spain's four stock exchanges.
28
Consolidated Management Report for 2024
Board of Directors (12 members)
A non-executive chairperson and a CEO
Seven independent directors (58.3%) and three proprietary directors (25%)
Appointments and Remuneration
Committee
Audit Committee
Sustainability Committee
Chair:
Independent director
Chair:
Independent director
Chair:
Independent director
33% Proprietary
25% Proprietary
33% Proprietary
67% Independent
75% Independent
67% Independent
2024 was marked by ongoing implementation of the Engagement Protocol Action Plan designed to bring
the Board of Directors closer to Redeia's employees. This plan is materialising in a number of informal
gatherings and meetings with directors taking a range of formats and addressing different strategic topics of
interest for the Company. The aim of these sessions is to make Redeia's employees more familiar with the
Company's directors and the work done by the Board and its various committees as the Company's employees
are not specifically represented on the Board at present (as this representation is not contemplated in either
Spanish law (Corporate Enterprises Act) or the Good Governance Code of Listed Companies).
Along with the director skills matrix, the corporate website provides the directors' biographies, making it
possible to transparently consult their current and prior positions and learn about their relevant experience in
the Redeia's sectors, products and geographic locations, along with specific information about their expertise
around sustainability. The above-mentioned skills matrix itemises the level of stills and expertise of the Board
members with respect to Redeia's strategic priorities, as well as cross-cutting aspects. The list of strategic
priorities specifically identifies "Sustainability and climate change". At present, all of the members of the
Sustainability Committee have skills and expertise in this area.
More specifically, the members of the Sustainability Committee have proven track records performing the roles
assigned to that committee, as borne out by their extensive experience, skills and know-how, having been
selected by the Board of Directors, at the recommendation of the Board Chairperson, in turn on the basis of
a report from the Appointments and Remuneration Committee, in an effort to make sure they boast the
knowledge, skills and experience required to carry out those roles.
Board diversity at 31 December 2024
Gender. Number of directors by gender.
50% of the Board members are female.
Board of Directors
Audit Committee
Appointments and
Remuneration Committee
Sustainability Committee
Women
Men
Women
Men
Women
Men
Women
Men
6
6
1
3
2
1
2
1
Age. Number of directors by age.
The directors' average age is 59.
Board of Directors
Audit Committee
Appointments and
Remuneration Committee
Sustainability Committee
<50
years of
50 to 60
years of
>60
years of
<50
years of
50 to 60
years of
>60
years of
<50
years of
50 to 60
years of
>60
years of
<50
years of
50 to 60
years of
>60
years of
1
6
5
1
1
2
0
2
1
0
1
2
Length of service. Number of directors by tenure.
The directors have been serving on the Board for an average length of time of 5.17 years.
Board of Directors
<3 years
3 - 5 years
>6 years
2
7
3
Consolidated Management Report for 2024
29
Roles and responsibilities of the administrative, management and supervisory bodies
The Board of Directors of Redeia Corporación, S.A. administers, governs and represents the Company,
placing the Company's and shareholders' interests ahead of its own, all of which in compliance with company
law, the bylaws and the principles of good corporate governance.
The Board carries out its duties in keeping with the rules of organisation and functioning set down in the
Company's Bylaws and the Regulations of the Board of Directors. The Board of Directors' responsibilities
include:
•
Approval of the general policies and strategies of the Company and the Group,
and, in particular the risk control and management policy and the corporate governance policy.
•
The risk control and management policy must identify at least:
◦
The different types of risk, including emerging risks, both financial and non-financial (a term which
includes risks that are not directly financial in nature, without prejudice to their possible financial
impact, and includes, among others, operational, technological, geopolitical, compliance, ethics and
business conduct, strategic, legal, reputational, cybersecurity and sustainability risks), faced by the
Company and the Group, including contingent liabilities and other off-balance sheet risks;
◦
A tiered risk management and control model, specifying the responsibilities assigned to each level of
the organisation;
◦
The level of risk that the Company considers acceptable, framed by the Board's mandate in this
respect;
◦
The measures in place to mitigate the impact of the identified risks, should they occur, assigning clear
responsibilities to the competent bodies and persons;
◦
The internal control and reporting systems to be used to control and manage the above risks, including
contingent liabilities and off-balance sheet risks, ensuring that these responsibilities are adequately
integrated into the Company's policies and procedures. Decision-making regarding: authorisation of
the appointment and removal of senior executives of the Company and of Red Eléctrica de España,
S.A.U.; director remuneration; approval of the financial and non-financial information (including
sustainability information); and strategic investments, unless they have to be approved at the General
Meeting.
•
Annual assessment of the quality and efficiency of the Board and the functioning of its committees.
Note additionally that the Board's responsibility with respect to sustainability impacts, risks and opportunities
is set down in article 5.5 of the Regulations of the Board of Directors, while that of the CEO is set down in
article 11.3.c) thereof.
The purpose of the Board Regulations is to determine the operational principles of the Board of Directors of
Redeia Corporación, S.A. and the basic rules for its organisation and functioning. They set forth the rules for
the selection, appointment and removal of its members and the performance of the supervisory and control
functions entrusted to it, framed by defence of the Company's interests and pursuit of good governance. They
also integrate economic, environmental and social sustainability considerations, as well as responsibility and
a commitment to society as a whole, as the cornerstones of the actions of the Company and its Group.
The Company has three permanent and predominantly technical committees, which were created by the
Board of Directors to support and ultimately deliver enhanced efficiency and transparency. Note that article
23.2 of the Corporate Bylaws and article 16.2 of the Board Regulations itemise the roles and responsibilities
of the Audit Committee in relation to sustainability impacts, risks and opportunities. The roles of the
Appointments and Remuneration Committee in this respect are set down in article 18.5 e) of the Board
Regulations. Lastly, the roles of the Sustainability Committee are set down in article 18 TER d) of the Board
Regulations.
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Consolidated Management Report for 2024
The Board's dedicated Sustainability Committee dates to 2018, reflecting the strategic importance of this
issue for the Company. Redeia's 2030 Sustainability Commitment is championed by its Board of Directors and
senior executive team, ensuring that sustainability considerations are factored into the entire organisation's
day-to-day decisions. Moreover, the Sustainability Steering Committee and the Corporate Sustainability and
Studies Department play a key role, reinforcing the involvement of the highest decision-making bodies and
indeed of all areas of the organisation in the monitoring, supervision and implementation of the 2030
Sustainability Commitment.
The Sustainability Committee's roles include: leadership around ethics; oversight of the Group's sustainability
strategy and practices and its linkages with the Strategic Plan; supervision of delivery of the Group's
sustainability policies, strategies, plans and targets; supervision of stakeholder engagement processes; and
coordination of the sustainability reporting effort.
The procedure for informing the Board of Directors and its committees about impacts, risks and opportunities
consists of adding these matters to the agendas of the monthly meetings held by the Board and each of its
three committees.
The Internal Audit and Risk Control Department carries out the control and oversight process which consists
of different response plans. This process involves identifying, analysing, assessing, managing and controlling
Redeia's risks in a systematic manner, starting at the department level and extending its supervision up the
various levels of the organisation until it reaches the Executive Committee, the Audit Committee and the Board
of Directors.
Redeia also has a Crisis Management Protocol, which includes a specific crisis communication
management plan designed to establish the basic strategic messaging and actions to be followed in response
to the communication needs that arise in a crisis, addressing institutions, governments, stakeholders and the
media (conventional and social) alike.
Regarding the involvement of the administrative, management and supervisory bodies in monitoring progress
towards the targets set, in 2019, the Board of Directors approved 11 sustainability targets with a time horizon
of 2030; those targets are aligned with Redeia's Strategic Plan and its material impacts, risks and
opportunities.
Subsequently, the formulation in 2022 of the 2023-2025 Sustainability Plan defined interim targets along the
roadmap for delivering Redeia's sustainability targets for 2030, fleshing out the existing 11 targets and defining
new milestones associated with the material risks and opportunities. These targets, which contribute directly
to delivery of the United Nations Sustainable Development Goals, were validated by the Sustainability Steering
Committee, the Executive Committee and the Board's Sustainability Committee and then approved by the
Board of Directors. Twice a year, the Board's Sustainability Committee supervises progress towards the
targets set in the current sustainability plan, specifically including those related with Redeia's material impacts,
risks and opportunities.
b. Information provided to and sustainability matters addressed by the undertaking's
administrative, management and supervisory bodies. GOV-2
The Board of Directors and its committees, within their respective remits, are responsible for supervising the
sustainability reporting process at Redeia. As already noted, the Sustainability Committee supervises progress
towards the targets set in the current sustainability plan, specifically including those related with Redeia's
material impacts, risks and opportunities.
The administrative, management and supervisory bodies, along with their relevant committees, receive
regular updates about Redeia's impacts, risks and opportunities, the implementation of due diligence, and the
results and effectiveness of the policies, actions, metrics and targets adopted to address them.
The Company publishes an annual report providing an account of the activities undertaken by the Board
committees which includes a list of the main topics addressed during the previous reporting period, specifically
including the matters dealt with by the Sustainability Committee.
Consolidated Management Report for 2024
31
Redeia has a Comprehensive Risk Management Policy, last reviewed and updated in 2021, and a
comprehensive General Risk Management and Control Procedure, reviewed and updated in 2023, based on
the COSO ERM (Committee of Sponsoring Organizations of the Treadway Commission) Enterprise Risk
Management - Integrated Framework. That procedure vests the Internal Audit and Risk Control Department
with the duty of informing the bodies tasked with supervision and control (Executive Committee, Audit
Committee and Board of Directors) about the status of and trend in the material risks at least twice yearly. It
also provides such an update whenever specifically asked to or whenever the importance of the matter advises
so doing.
These bodies, in the course of overseeing strategy, taking decisions on major transactions and managing
risks, consider impacts, risks and opportunities. They do so through annual supervision of the Corporate Risk
Map, placing particular emphasis on the risks derived from climate change and on materiality, supervising the
material impacts, risks and opportunities. The additionally weigh up measures associated with these factors
by supervising specific projects that are brought before the various Board committees monthly.
All of the impacts, risks and opportunities identified have been brought to the attention of the Board's
Sustainability Committee, which has validated the results of the materiality assessment and their fit and
alignment with Redeia's strategic targets, ensuring that the key priorities identified are addressed consistently
so as to maximise the positive impact the Company's operations have on its local communities, so mitigating
the risks to which it is exposed.
Thanks to its materiality assessment, Redeia has identified the impacts, risks and opportunities itemised in
chapter 1.2 Materiality assessment, specifically in section 1.2.4 Material impacts, risks and opportunities.
SBM-3.
c. Integration of sustainability-related performance in incentive schemes GOV-3
The Director Remuneration Policy applicable in 2024 was approved at the Annual General Meeting held on
29 June 2021 for a term of three years (2022, 2023 and 2024). As required under Spain's Corporate
Enterprises Act, the Board of Directors submitted a new director remuneration policy applicable in 2025, 2026
and 2027 for approval at the 4 June 2024 Annual General Meeting, where it was duly approved.
The remuneration of the CEO and officers includes fixed and variable components and the latter comprises
short- and long-term incentives aligned with Redeia's targets and strategies. More specifically, the annual
variable remuneration of the CEO is based on delivery of a combination of predetermined and quantifiable
corporate targets, measured at the Group level, which account for 75% of his total annual variable
remuneration, and delivery of managerial targets linked to Redeia's businesses, which account for 25% of his
total annual variable remuneration. The latter set of targets include a sustainability target, which has a
weighting of 15% and is associated with progress towards delivery of Redeia's 2023-2025 Sustainability Plan,
emissions abatement and the Company's ongoing inclusion in the most important sustainability stock indices.
As for the long-term variable remuneration, the targets embedded in the long-term incentive plan (LTIP)
related with fostering the energy transition, reducing the digital divide and diversification are related with the
targets set down Redeia's 2021-2025 Strategic Plan and aligned with the thrust of the current Director
remuneration policy. The LTIP is a six-year plan and terminates on 31 December 2025. Entitlement to receive
this incentive is conditional upon delivery of the targets associated with the 2021-2025 Strategic Plan and
ongoing employment at the Company throughout the term of the incentive scheme. Note that 75% of the
targets set in the above-mentioned plan are related with sustainability (ESG), specifically those of "Making the
energy transition in Spain a reality" (45%), "Fostering connectivity" (15%), "Delivering the Sustainability Plan"
(10%) and "People" (5%).
The Sustainability Committee supervises progress towards the sustainability-related targets over time and
informs the Board of Directors in that respect. Elsewhere, in approving the remuneration-related targets for
the CEO and officers, which include sustainability-related targets, the Appointments and Remuneration
Committee approves and informs the Board about their definition and delivery. The Board of Directors
supervises these matters via the reports received from its committees and when approving the Annual Director
Remuneration Report, which sets out the proposal for remuneration tied to delivery of the targets for the
immediately preceding reporting period and the proposal for remuneration associated with the targets set for
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Consolidated Management Report for 2024
the reporting period in progress which in both instances include sustainability-related targets. Lastly, the Board
of Directors voluntarily submits the above-mentioned Annual Director Remuneration Reports for approval at
the Annual General Meeting and publishes it on the corporate website annually.
d. Statement on sustainability due diligence GOV-4
Redeia has been carrying out annual due diligence assessments at all Group companies (including investees)
since 2013 in order to identify possible risks or human rights violations derived directly or indirectly from its
activities.
In 2022, it updated its internal due diligence procedures in respect of its own activities and its dealings with
third parties, bringing them into line with Spanish and international legislation and emerging trends, emerging
rights and new right-holders that could be impacted. In order to ensure continuous improvement in this area,
these procedures are reviewed annually.
Risks are updated each time Redeia acquires a new undertaking or enters a new geographic market. As a
result, it did not have to review its risks in 2024.
Redeia's human rights due diligence process encompasses three stages:
•
Human rights risk map: verification that human rights and right-holders that could be affected by Redeia's
activities have not changed from previous years. Depending on the outcome, the human rights risk map
is updated if necessary by identifying, prioritising and assessing potential and real negative impacts using
proprietary methodology based on the risks' probability of occurrence and severity in the event of
materialisation. This map is revised annually.
•
Implementation of risk prevention, mitigation and remediation measures: the conclusion drawn from
the human rights risk mapping process are integrated into the Company's roles and prevention, mitigation
and/or remediation measures are drawn up and implemented for the risks identifies, assigning specific
targets for improvement.
•
Oversight of the measures implemented: quarterly or annually, depending on the severity of the impact,
the qualitative and quantitative indicators defined for each measure are analysed. If the results fall short
of target and the harm caused persists, the solution design is considered and new measures are crafted
in collaboration with the affected parties.
In addition, Redeia complements its due diligence model addressing third-party integrity and human rights
with a support tool, specifically the Dow Jones Risk Center Screening & Monitoring platform which it can use
to enquire about specific entities or individuals, breaches, illicit conduct or sanctions that could affect integrity
and/or human rights.
The due diligence process was one of the sources used by Redeia to carry out its materiality assessment for
2024 and is therefore aligned with the identification of impacts, risks and opportunities as part of that
assessment.
e. Risk management and internal controls over sustainability reporting. GOV-5
Redeia's enterprise risk management system addresses sustainability matters with the aim of facilitating
delivery of Redeia's strategies and targets by ensuring that the risks thereto are systematically identified,
analysed, assessed, managed and controlled, framed by uniform criteria and within the risk tolerance
thresholds approved at the Board level. Specifically, Redeia's Comprehensive Risk Management System is
aligned with ISO 31000, the international standard on risk management principles and guidelines.
Redeia also has a Comprehensive Risk Management Policy, last reviewed and updated in 2021 and a
comprehensive General Risk Management and Control Procedure, based on the COSO ERM (Committee of
Sponsoring Organizations of the Treadway Commission) Enterprise Risk Management - Integrated
Framework. That procedure vests the Internal Audit and Risk Control Department with the duty of informing
the bodies tasked with supervision and control (Executive Committee, Audit Committee and Board of
Consolidated Management Report for 2024
33
Directors) about the status of and trend in the material risks at least twice yearly, whenever specifically asked
to or whenever the importance of the matter advises so doing.
General Risk Management and Control Procedure
Stages
Objectives
Identification
•
Identifying the risks and exposure to the contributing factors.
Assessment: probability | impact
•
Defining the likelihood of occurrence and level of impact.
Analysis of risk level
•
Classifying the risk by level: low, medium or high
Action plan
•
Formulating action plans for mitigating or reducing the risk and keeping it
within the defined tolerance thresholds.
Oversight and monitoring
•
Integrating information about the material risks (risk map) and informing the
governing bodies.
The General Risk Management and Control Procedure was last reviewed and updated in 2024. This
procedure regulates the process of systematically and consistently identifying, analysing, assessing and
controlling the material risks, including emerging risks, that could affect achievement of Redeia's strategies
and targets. The goal is to ensure that the various levels of responsibility of the organisation are aware of and
understand these risks and manage them within the set tolerance levels. It also establishes the duties vested
in the control and supervisory bodies and each of the organisational units, as well as the information flows
related with the activities to be performed.
Redeia has defined a risk taxonomy or classification to facilitate more comprehensive identification and
detailed analysis of identified risks. Under this taxonomy, identified risks are classified into one of three groups:
strategic, financial and operational.
Elsewhere, Redeia's Comprehensive Risk Management System establishes methodology for
determining risk levels as a function of two variables: the likelihood of occurrence; and the impact that
materialisation of the risk would have at the Company in terms of four key components of the business:
•
Financial loss.
•
Achievement of the current strategic plan.
•
Reputation.
•
Electricity supply.
Each risk is placed on the matrix as a function of the probability of occurrence and the level of impact of each
risk, which automatically determines its risk level, such that all identified risks are individually classified into
one of three categories: high risk, medium risk and low risk.
The level of risk that Redeia is willing to tolerate is established in the Board-approved Comprehensive Risk
Management Policy. Those thresholds are set individually for each risk and overall for each of the impact
categories contemplated in the Comprehensive Risk Management System: financial loss, strategic plan,
reputation and electricity supply (or the equivalent category depending on the activity carried out by each
Redeia company).
In addition, Redeia periodically conducts a number of sensitivity analyses (stress tests) around certain
financial and non-financial risks in a bid to anticipate the potential impact on the Company of their
materialisation in certain future scenarios and to monitor developments with respect to the main variables that
could impact achievement of the strategic plan (including financial variables such as interest and inflation rates
as well as more business-related variables).
In the course of its risk assessment effort, Redeia has identified the main risks that could impact the
organisation. The strategies designed to mitigate those risks and the related controls implemented are
itemised throughout chapter 1.2 Materiality assessment. That chapter provides a clear and concise account
of how the Company proactively tackles these challenges to ensure the sustainability and resilience of its
operations.
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Consolidated Management Report for 2024
Having identified and assessed its risks, Redeia uses the model's specific methodology for determining their
level, which it has likewise used to assess the sustainability risks identified in the course of the 2024 materiality
assessment, so that the sustainability reporting process integrates the findings of its risk assessment and
internal controls.
The General Risk Management and Control Procedure tasks the Internal Audit and Risk Control Department,
which reports hierarchically to the Chairperson's Office and functionally to the Audit Committee, with the duty
of coordinating implementation and development of Redeia's enterprise risk management system; carrying
out due control and oversight of the material risks, framed by uniform criteria and factoring in the established
risk tolerance thresholds; and informing the bodies tasked with supervision and control (Executive Committee,
Audit Committee and Board of Directors) about the status of and trend in the risks at least twice yearly,
whenever specifically asked to or whenever the importance of the matter advises so doing.
Likewise, Redeia has an Internal Control over Sustainability Reporting System (ICSRS) whose main
purpose is to mitigate material related risks related with sustainability reporting and ensure the faithfulness of
the sustainability disclosures made. The scope of the ICSRS includes all of the companies comprising Redeia
that make a material or relevant contribution to the sustainability information reported.
The prime risks associated with the ICSRS are the existence of material errors in the sustainability information
published in the Sustainability Statement and the risk that the information reported is not transparent,
comparable, complete, faithful or accurate. These risks are mitigated by properly executing the 185 controls
established in the model.
In order to ensure the traceability of the ICSRS, the system underwent an end-to-end and consistency
intervention using a tool that allows the vested organisational units and lines of defence to:
•
Centralise and furnish all of the evidence associated with the controls performed;
•
Digitalise the control flow charts and self-assessments;
•
Monitor the proper functioning of the internal control model and supervise the controls with the aim of
ensuring that the risks have been mitigated by means of due performance of the related controls.
Redeia's ICSRS is a dynamic system which means that constantly updating it is essential to guaranteeing the
reliability of its sustainability information. That updating effort is stipulated in the annual ICSRS work plan.
The ICSRS is articulated around the three lines of defence model as this helps the organisation to identify the
structures and processes that best facilitate target achievement and foster solid governance and risk
management. This model helps manage risks effectively, maintain control of the process and strengthen
ICSFR governance.
The ICSFS governing bodies defined by Redeia are:
•
The Board of Directors: whose duties are to approve the policy for controlling and managing Redeia's
main risks and to be familiar with and supervise the internal control, prevention and reporting systems. By
extension, that familiarity and supervisory duty extends to the Internal Control over Sustainability
Reporting System.
•
Audit Committee: This committee's duties specifically include:
o
Supervising and assessing the process of drafting and presenting, as well as the integrity of, Redeia's
sustainability information.
o
Supervising and assessing periodically the effectiveness of the internal control and sustainability risk
management systems so that the various classes of risks are duly identified, management and
disclosed internally.
•
Sustainability Committee: This committee's many duties include that of assessing, supervising and
controlling risks related with sustainability, ethics and corporate conduct and, specifically, climate change,
in collaboration with the Audit Committee, organising joint meetings as necessary.
Consolidated Management Report for 2024
35
11.1.1.4 Strategy and business model
a. Strategy, business model and value chain SBM-1
Redeia is a global operator of essential infrastructure. It is the Spanish electricity system operator. It manages
electricity transmission networks in Spain, Peru, Chile and Brazil and telecommunications networks (fibre
optics and satellites), with a strategic focus on innovation and sustainability.
Since its creation in 1985 as the world's first electricity transmission and system operator (TSO), it has evolved
to become a benchmark player in the areas of electricity infrastructure management and telecommunications.
Today, Redeia's business model is based on excellence, innovation, integrity and transparency. It ensures its
business activities are compatible with caring for the environment and generating shared value with society,
so becoming an engine for the energy transition and universal connectivity. There were no changes in the
markets or customer groups served in 2024.
.
The main businesses and undertakings comprising Redeia are:
•
Red Eléctrica: Spain's TSO, the backbone of the country's electricity system and guarantor of safe, quality
and increasingly renewable supply.
•
Redinter: driver of decarbonisation of the energy model and of sustainable development in Latin America.
•
Reintel: the largest provider of dark fibre in Spain, essential to the provision of universal and inclusive
connectivity.
•
Hispasat: a key player in the digital transformation and in reducing the digital divide in Spain and Latin
America.
•
Elewit: a technological innovation platform for all of the other businesses focused on propelling the energy
transition and connectivity.
Based on these businesses, Redeia defines four main value chains, which share a cross-cutting business,
Elewit, which acts as facilitator and connector for Redeia's main companies and business units, centralising
and catalysing opportunities for injecting innovation into the Group, whether by developing projects itself or
through partnerships with other players in the innovation ecosystem.
For the main features of the upstream and downstream value chains and Redeia's position in them and a
description of the main business actors (key suppliers and customers) and their relationship with Redeia, refer
to section 1.2.1 Understanding of the Materiality assessment chapter.
Redeia's most important geographical area by headcount is Spain (2,042 employees), followed by Colombia
(139 employees), Peru (135 employees), Brazil (60 employees) and Chile (40 employees). Redeia also has
a presence in Germany, Mexico, Ecuador, the UK, Argentina, Luxembourg and the US.
In 2024, Redeia generated value for its shareholders (paying out 574 million euros of dividends), for its
employees (staff costs of 180.5 million euros and an injury frequency rate of 2.49) and its suppliers (purchasing
goods and services for 1,523 million euros, with 94.07% of its suppliers based in the European Union)
2021-2025 Strategic Plan
In February 2021, the Board of Directors approved Redeia's 2021-2025 Strategic Plan, which is underpinned
by three levers: (i) a strong commitment to the energy transition; (ii) a push towards connectivity solutions;
and (iii) consolidation of the international business.
The 2021-2025 Strategic Plan prioritises pursuit of the energy transition in Spain to make efficient progress
towards a decarbonised economy, leveraging the progress made in the telecommunications business and
consolidating the international business, while guaranteeing the Group's financial and operational efficiency,
ensuring that talent and sustainability form the basis of its corporate culture and generating positive impacts
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Consolidated Management Report for 2024
by forging alliance with the community and sector players. Sustainability is embedded into that plan as an
articulating pillar spanning all the Group's activities.
Sustainability challenges
(strategic pillars)
Solutions | critical projects (progress in 2024)
Making the energy
transition in Spain a
reality
•
Commissioning of the new Buenos Aires 220 kV substation in Santa Cruz de Tenerife.
•
Start of the works for the electricity interconnection between mainland Spain and Ceuta.
•
Start of the public consultation process for building public consensus around the second
mainland Spain-Balearics link.
•
Commissioning of the new 132 kV double-circuit line in Fuerteventura.
Fostering connectivity
•
Membership of DigitalES by Reintel to accelerate digitalisation in Spain.
•
Approval of Reintel's net zero emissions plan.
•
Adjudication to the SpaceRise consortium (of which Hispasat is part) of the contract to
develop, deploy and operate IRIS².
•
Rollout by Hispasat of a community outreach contest (#PueblosMUYconectados) as part of
its Conéctate 35 service.
Consolidating the
international business
•
Completion of the expansion work at the Centinela substation and switching of the 2 x 220 kV
Cobre - Esperanza line.
•
Organisation of the first Sustainability and Energy Seminar titled "A sustainable future needs
Latin America" with ESAN.
People
•
Creation of the Positive Safety community with the ecosystem of construction and
maintenance suppliers.
•
Assessment of critical positions to identify key drivers for retaining top talent.
•
Definition of a scholarship plan for young people with disabilities.
•
Negotiation, signature and publication of Redeia Infraestructuras de Telecomunicación, S.A.'s
second collective bargaining agreement.
Innovation and
technology
•
First close by the energy transition fund.
•
Definition of the plan for implementing the initiative for the advanced monitoring of the
transmission grid (Project ASUMO).
•
Consolidation of the activities of New Venture with the alliance for the industrialisation and
monetisation of the interoperable platform for the development of critical services (PIDSC)
and its first investment in a company created by an intrapreneur.
Efficiency
•
Redeia Corporación issued its first green notes: 500 million euros.
•
Red Eléctrica issued 500 million euros of green notes.
•
EIB approval for a 300 million euros loan to boost development of the pumped-storage
hydropower facility in the Canaries.
Sustainability
•
5.8 million euros invested under the umbrella of the Comprehensive Community Impact
Strategy and the rollout of Tejedora and Pensadere, strategy execution tools.
•
Deployment of widespread active listening boards with the participation of local stakeholders.
•
Launch of the ‘Marine Forest' platform for the recovery of marine ecosystems out to 2030.
•
Progress on the sustainable purchasing model.
•
Progress on the non-financial information control system and data strategy.
•
Ongoing inclusion in the Dow Jones Sustainability Index, Euronext, FTSE4Good, ISS ESG
and MSCI, among other benchmark indices.
2030 Sustainability Commitment
Redeia's Board-approved 2030 Sustainability Commitment embodies its commitment to its long-term
endurance by forging a business model capable of creating shared value for all stakeholders and doing
Consolidated Management Report for 2024
37
business responsibly. This commitment is underpinned by the 10 principles set down in the Sustainability
Policy and materialises in four priorities for responding to the Group's sustainability challenges.
In 2019, Redeia established 11 sustainability targets for delivery by 2030, aligned with its Strategic Plan. The
2030 Sustainability Commitment is deployed through multi-year plans. The 2023-2025 Sustainability Plan
was approved by the Board of Directors, following its approval by the Executive Committee, the Sustainability
Steering Committee and the Board's Sustainability Committee. It defines, through 14 lines of initiative, interim
targets on the roadmap to achieving Redeia's sustainability ambitions for 2030. These targets contribute
directly to materialisation of the United Nations Sustainable Development Goals.
Sustainability priorities and targets for 2025 and 2030
Decarbonisation of the economy
To act as a proactive agent in the energy transition towards a zero emissions model, based on the electrification of the economy
and the efficient integration of renewable energy through a robust and better-connected network and the development and
operation of energy storage systems.
2030 targets
2025 targets
Climate change
•
Reduce Scope 1 and 2 emissions by 55%
and Scope 3 emissions by 28% with respect
to 2019 (*)
•
30% reduction in Scope 1 and 2 emissions
•
Two-thirds of suppliers (measured in terms of emissions) with
SBTi-approved targets (relative to 2019)
•
Offset of 100% of Scope 1 emissions
Energy transition
•
Empower society to be actively involved in
the energy transition process.
•
Safely integrate 100% of the renewable
energy available in the electricity system:
74% of renewable energy in electricity
generation
•
>60% of renewable energy in electricity generation
•
Start-up of the expanded Datahub accessible to legally-permitted
participants and stakeholders
•
Additional content on the REData and RedOS platforms
Green financing
•
100% sustainable financing
•
60% sustainable financing
(*) Scope 1 emissions: direct emissions from sources owned or controlled by the Group (SF6, combustion emissions from vehicles and generators and
emissions from air conditioners). Scope 2 emissions: indirect emissions from electricity consumption (includes transmission grid losses). Scope 3
emissions: indirect emissions resulting from Redeia's activity but generated by sources not controlled by Redeia (supply chain, business travel,
employee commuting, logistics, waste, etc.).
Responsible value chain
Extend our responsibility commitment to all the links in the value chain, from our employees to our suppliers and customers, by
forging alliances, all underpinned by our model of good governance and integrity.
2030 targets
2025 targets
Biodiversity
•
Have a net positive impact on the natural
capital of the areas surrounding new
facilities
•
100% of the critical spans signalled for Red Eléctrica
•
100% of investment projects associated with the commitment to
protect vegetation and fight deforestation
Circular economy
•
Become a leading circular economy
company
•
Zero landfill waste within the Group
•
6.5 m3 of water consumption per employee
t G
k l
•
Zero landfill waste at Red Eléctrica
•
6.5m3 of water consumption per employee per year at Red
Eléctrica and Redinter workplaces
Suppliers
•
Drive change among our suppliers. At least
25 supplies with the greatest impact in the
transmission grid committed to circularity
criteria: LCA, climate change, safety,
diversity and biodiversity
•
At least 10 supplies with the greatest impact in the transmission
grid committed to circularity criteria: LCA, climate change, safety,
diversity and biodiversity
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Consolidated Management Report for 2024
Contribution to local development
Contribute to economic, environmental and social progress in local areas, by providing an essential service in a safe and
efficient way, fostering environmental conservation, enhancing people's quality of life and social wellbeing and involving
communities in the development of our activities so as to generate tangible mutual benefits.
2030 targets
2025 targets
Diversity
•
Be a benchmark in gender equality: 50% of
women on Redeia's Board of Directors and
management team at Group level.
•
Promote the inclusion of segments of society
at risk of social and workplace exclusion.
•
50% of women on Redeia's Board of Directors
•
38% of the management team female
•
Delivery of at least 40% of the legal requirement for the direct
hire of people with disabilities
•
Growth of 20% in the volumes managed via Special Employment
Centres for the provision of services at Redeia
•
Digital divide
•
Reduce the digital divide: Connectivity for
100% of the people living in the vicinity of
our facilities
•
Fostering development of the fibre optic businesses of at least
three local operators
•
100 Mbps deployed with connectivity nationwide.
Climate change anticipation and action
Foster a corporate culture of innovation and flexibility that enables us to identify growth opportunities and tackle future
challenges by staying ahead of and adapting to global trends and to the regulatory environment emerging from the new energy
model.
2030 targets
2025 targets
Innovation and technology
•
Be a benchmark in technological innovation.
Adoption of 64 technological solutions at
Redeia that provide solutions to the Group's
key challenges by delivering tangible or
intangible value.
•
Adoption of 24 technological solutions at Redeia that provide
solutions to the Group's key challenges by delivering tangible or
intangible value.
All of the above targets apply globally irrespective of groups of products and services, customer categories,
geographical areas or relationships with stakeholders.
Note that the material impacts, risks and opportunities and their interaction with the strategy and business
model are detailed in each of the following chapters.
b. Interests and views of stakeholders. SBM-2
Redeia stands out for its desire to accommodate the different stakeholders it engages with. As a result, it has
forged a mature stakeholder engagement model which it reviews periodically to ensure it identifies all
stakeholders, establishes the most suitable model for engagement and is capable of detecting their needs
and expectations. As for the services associated with the Group's various businesses, Redeia is working to
ensure service quality, going to increasing lengths to improve its customer communication channels and
platforms.
Redeia stakeholders
•
Regulatory and government bodies
•
People
•
Economic and financial ecosystem
•
Customers
•
Suppliers
•
Social ecosystem
•
Business ecosystem
Redeia has articulated its stakeholder management Model around the leading benchmark
recommendations in stakeholder engagement to ensure it analyses its impacts on its
stakeholders and understands how they in turn influence the Company.
The purpose of the model is to build trust-based relationships oriented towards shared value creation. Its
design factored in the provisions of the main stakeholder management regulations and benchmarks, notably
AA1000, ISO 26000, IQNet SR10 and the Global Reporting Initiative (GRI), in order to ensure that the
Consolidated Management Report for 2024
39
Company analyses the main impacts of its activities on its stakeholders, as well as the influence that these
stakeholders exert, or could exert, on the Company.
In this manner, Redeia gears stakeholder relations towards the creation of shared value, strengthening the
positive impacts and swiftly identifying any negative impacts that might affect the relationship, with a view to
minimising them.
The management model encompasses six well-differentiated phases:
•
Identification and segmentation of the groups that constitute stakeholders based on analysis of the
interrelationships between the Company's processes and activities and its surroundings and based on the
reason for their vested interest.
•
Determination of the importance of the stakeholder groups based on three prioritisation factors:
the Company's impact on the stakeholder group; the stakeholder group's influence on the Company and
tension. This filtering process yields a prioritised inventory of stakeholders.
•
Definition and rollout of the optimum relationship model for each stakeholder group will depend firstly on
the commitments assumed by the Company with them and also their level of priority and the type of
engagement deemed most appropriate.
•
Each Group company and stakeholder manager then implements the defined relationship model, fostering
dialogue with their stakeholders and generating improvements by addressing the rationale for the
relationship and the stakeholders' material concerns, needs and expectations, the goal being to maximise
positive impacts and minimise negative ones. Redeia transmits its commitment to sustainability across all
areas of its business and at all levels of the organisation to ensure effective value creation for its
stakeholders.
•
Assessment of stakeholder management is based on systematic and regular identification of stakeholder
needs and expectations using different methodologies depending on the relationship model established
for each group. This assessment gives rise to action plans designed to respond to the material topics,
needs and expectations so identified.
•
Regular review of the model to factor in material changes in the Company's external or internal
environment to ensure it remains aligned with Redeia's reality and useful as a management tool.
Stakeholder
group
Specific commitments*
Engagement channels
Regulatory and
government
bodies.
•
Independence as system operator.
•
Transparent, trustworthy, accurate, faithful and timely
information.
•
Proactive problem analysis and solution.
•
Lawfulness, compliance and respect for the international
rules of conduct.
•
Collaboration with and counselling of the European and
Spanish institutions.
•
Good corporate governance.
•
Furthering the energy transition in Spain.
•
Contributing to sustainable economic, environmental and
social development.
•
Institutional websites and
platforms.
•
Work group platforms
•
Participation in committees
•
Personal contact, telephone
and email
•
Meetings on demand
•
Corporate website
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Consolidated Management Report for 2024
Economic and
financial
ecosystem
•
Application of best practices in corporate governance and risk
control.
•
Voluntary adoption of the Code of Good Governance of Listed
Companies.
•
Ethical conduct.
•
Transparent and rigorous information.
•
Operational quality and security.
•
Economic solvency over medium- and long-term horizons.
•
Long-term relationships based on trust.
•
Value creation in the short and long term.
•
Dividend policy (profit sharing).
•
Sustainable financing by 2030.
•
Timely information provided on equal terms of access.
•
Open, transparent and close dialogue.
•
Work groups and collaborative
projects.
•
Technical meetings and
institutional events.
•
Mail, telephone and corporate
mailboxes.
•
The channels stipulated by the
competent authority.
•
Ethics and whistle-blowing
channel.
•
Institutional investor relations
and shareholder offices.
•
Roadshows, one-on-one
meetings, video meetings.
•
Annual General Meeting.
•
Corporate website.
People
•
Culture of ethics and honesty conducive to diversity and
equal opportunities.
•
Compliance with legislation and collective bargaining
agreements.
•
Continuity of the business endeavour and job stability.
•
Talent management and career development.
•
Healthy work environments framed by a perspective of
holistic wellbeing.
•
Work-life balance.
•
Two-way, open and close communication.
•
Facilitation of the freedom of association and direct dialogue
with management.
•
Participation in the firm's management through workers'
representatives.
•
Management visibility.
•
Appropriate and opportune responses to requests and
demands.
•
Attention to specific needs: contribution of solutions.
•
Meetings with the Board and its
committees and the Director
Portal.
•
Corporate people management
tools.
•
Email/telephone and in-house
mailboxes.
•
In-person and remote
meetings.
•
Periodical and systematic
seminars of different kinds.
•
Ethics and whistle-blowing
channel.
•
Corporate intranet
(nuestraRed)
•
Digital events and specific or
thematic seminars.
Suppliers
•
Guaranteed competition, equal treatment and non-
discrimination.
•
Proportionate procurement model.
•
Performance of contractual commitments.
•
Guaranteed solvency; payment on time and as due.
•
Ethical, transparent and honest conduct.
•
Visibility around needs and resources with fair and necessary
advance notice.
•
Acting as an agent of change.
•
Encouraging responsible practices all along the supply chain:
sustainability criteria and extension of sustainability
commitment to every link in chain.
•
Supplier care and support
service (ASA).
•
DIGAME channel.
•
Ethics and whistle-blowing
channel.
•
PRORED for enquiries about
the LICITA certification process
and the tender process.
•
Invoicing mailbox.
•
Technical meetings, gatherings
and training and development
events.
•
Telephone, Teams and email.
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41
Customers
•
Acting as driver and facilitator of the energy transition in
Spain.
•
Lawfulness and compliance.
•
Acting proactively to facilitate compliance with the law.
•
Excellence in all processes and services.
•
Equal treatment of all system actors.
•
Transparent, secure, trustworthy, rigorous and accurate
information.
•
Openness to dialogue, proximity, active listening and the
provision of helpful information.
•
Confidentiality of information.
•
Honouring of deadlines and quality commitments in the roles
allocated in the transmission grid planning process and
commissioning of facilities.
•
Efficient management (in time and manner) of incidents,
enquiries and claims.
•
Creation of shared value.
•
Corporate website.
•
Customer portal and service
platforms.
•
Regular and on-demand
meetings.
•
Visits and webinars.
•
Work groups.
•
Seminars and thematic events.
•
Ethics and whistle-blowing
channel.
•
DIGAME channel.
Social
ecosystem
•
Lawfulness and compliance.
•
Generation of social, environmental and economic value in
the vicinity of Redeia facilities and developments.
•
Transparent, clear, opportune, complete, relevant, orderly and
simple information.
•
Creation of spaces and channels for open dialogue and prior
consultation to foster engagement and deliver immediacy,
closeness, active listening and identification and analysis of
needs.
•
Prevention and mitigation around impacts on works and
facilities.
•
Rapid response in the event of incidents and emergencies.
•
Assignation of the resources needed to honour the
commitments assumed.
•
Corporate website.
•
DIGAME channel.
•
Regular and ad-hoc meetings.
•
Email, telephone and
WhatsApp.
•
In-person forums and events
and webinars.
•
Visits.
•
Registered post.
Business
ecosystem
•
Lawfulness and compliance.
•
Transparent, rigorous and reliable information.
•
Ethical and honest conduct in defending the interests of
associations and their members.
•
Professionalism, commitment and representation at work
groups.
•
Project participation seeking shared efficiency and
effectiveness goals around processes and common
challenges.
•
Generation of alliances to search for solutions.
•
Confidence, actively listening, proximity.
•
Systematic dialogue, strengthening communication channels.
•
Participation in management
committees and assemblies.
•
Regular meetings and work
groups.
•
Participation in forums,
webinars and training courses.
•
Email and telephone.
•
Information exchange
platforms.
•
Corporate website.
•
Agreements and alliances.
* The commitments assumed derive from an understanding of the matters that are material to each stakeholder group.
Redeia has also designed stakeholder files for each category which reflect their structure, a map showing
impacts, influences and tension, the commitments assumed and the communication channels used. It has
also defined a relationship matrix, which identifies the organisational units at the Company that interact with
each stakeholder group, the unit responsible for the relationship and the nature of the existing relationship.
Redeia provides its stakeholders with appropriate and accessible channels for gathering their suggestions
and learning about their needs, expectations, opinions and grievances through which they can submit any
type of request related with the services provided by the Group companies, which also serve to provide them
with transparent and accurate information. Redeia is firmly committed to stakeholder transparency and
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Consolidated Management Report for 2024
dialogue, sharing news about its most important projects and results either directly using the channels put in
place for each, over the website and social media or through a range of regular reports.
The Company also carries out perception studies to detect stakeholder requirements and expectations,
striving to layer in their opinions on the basis of quantitative and qualitative analysis of their needs. It carries
out these studies periodically, as per a multi-year plan, with the help of an outside consultant to guarantee the
effectiveness and confidentiality of the entire process. As the results come in they are sent to the Corporate
Sustainability and Studies Department for analysis. Annually, the overall results are presented to the Board
Sustainability Committee and to the Sustainability Steering Committee to help them supervise strategic
matters related with stakeholders and ensure best practices in managing them.
Elsewhere, Redeia takes account of the views and interests of its stakeholders in its business strategy and
model by making them a core component of its double materiality assessment. More specifically, the context
analysis phase of its assessment includes a trend analysis that defines and/or will define the overall
sustainability, industry and geographical framework in which Redeia carries out its activity; the identification
of good practices to ascertain the level of maturity of the Group's sustainability performance with respect to
comparable benchmark companies; and an analysis of internal information to identify the requirements and
expectations of stakeholders and other issues of importance to them with a view to informing Redeia's
commitments and corporate plans. Note that the Group's stakeholders were actively involved in this
assessment in order to gauge their requirements and expectations.
Based on the results of that effort, Redeia gears its social commitment towards unlocking shared value by
pursuing actions and investments that are aligned with its business goals, which not only generate shared
value, but also happen to have a positive impact on the quality of life of the communities living in the areas
where the Company's assets are located. This also means the Company is helping to address global
challenges, such as the UN Sustainable Development Goals or the European 2030 energy strategy. This
engagement has not led to any changes in Redeia's strategy or business model.
11.1.2 MATERIALITY ASSESSMENT
11.1.2.1
Double materiality assessment process. IRO-1
In 2024, Redeia aligned its double materiality assessment with its requirements under the European
Sustainability Reporting Standards (ESRS) emanating from the CSRD. Specifically, it followed the criteria
defined in the ESRS to identify its material impacts, relevant risks and opportunities in its value chain and in
its own operations.
This double materiality assessment was also used to identify the topics, sub-topics and sub-sub-topics
that are material for Redeia taking a dual approach: identifying the sustainability topics that have a material
impact on its value proposition, results, situation and performance (financial materiality); and those that have
an impact on people, society and the environment (impact materiality).
In this manner, Redeia identified its material impacts, risks and opportunities, which have in turn informed
the disclosures to be provided in each chapter of this Sustainability Statement.
The methodological approach is based on the requirements set down in ESRS 1, integrating internal and
external information, and on a sector approach specific to the Group to identify its material sustainability
impacts, risks and opportunities from both perspectives (impact and financial materiality).
Redeia in turn based its methodological approach on its due diligence process which allows it to assess the
risks to which it is exposed with a view to mitigating them by establishing the appropriate controls. This
information is shared in greater detail in section 1.1.3 Governance in response to Disclosure Requirement
GOV-4: Statement on due diligence.
Redeia also ensured it considered other factors of relevance to its business models, activities, business
relations and geographical areas of influence. The assessment process was structured into five phases.
Consolidated Management Report for 2024
43
a. Understanding
This phase involves understanding Redeia's business model, analysing the various value chains and studying
the sustainability context and the needs and expectations of its internal and external stakeholders. To analyse
the context it reached out to its stakeholders, particularly affected communities, by means of in-depth
interviews and surveys.
As for its value chain analysis, note that Redeia considered all of its site locations and business activities to
determine its positive and negative impacts, actual and potential risks and opportunities in both its own
operations and also upstream and downstream, taking into account the business activities associated with the
material impacts, risks and opportunities related with sustainability matters.
Here we itemise the value chains associated with Redeia's different business activities:
Electricity business in Spain (Red Eléctrica)
Electricity business in Latin America (Redinter)
Telecommunications business: fibre optics (Reintel)
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Telecommunications business: satellites (Hispasat)
Note. The activities performed by Group subsidiary Elewit are horizontal, cutting across all of the value chains associated with
Redeia's business activities.
Based on this understanding, AR16 of Appendix C of ESRS 1 has been considered to identify the topics, sub-
topics and sub-sub-topics to be taken into account for the double materiality assessment as a function of their
linkages with Redeia's operations and the rest of its value chain, excluding the sub-topics that, following an
initial analysis, were deemed not applicable to Redeia or its value chain.
This analysis yielded the list of topics, sub-topics and sub-sub-topics to then consider for the impact, risk and
opportunity identification and assessment stages.
Below is a list of the applicable topics, sub-topics and sub-sub-topics:
List of applicable topics, sub-topics and sub-sub-topics
ESRS
ESG
Topic
Sub-topic
Sub-sub-topic
ESRS E1
E1
Environmental
Climate change
Climate change adaptation
E1
Environmental
Climate change
Climate change mitigation
E1
Environmental
Climate change
Energy
ESRS E2
E2
Environmental
Pollution
Pollution of air
E2
Environmental
Pollution
Pollution of water
E2
Environmental
Pollution
Pollution of soil
E2
Environmental
information
Pollution
Pollution of living organisms and food
resources
E2
Environmental
Pollution
Substances of concern
E2
Environmental
Pollution
Substances of very high concern
E2
Environmental
Pollution
Microplastics
ESRS E3
E3
Environmental
information
Water and marine
resources
Water
Water consumption
E3
Environmental
information
Water and marine
resources
Water
Water withdrawals
E3
Environmental
information
Water and marine
resources
Water
Water discharges (offices and
vehicles)
E3
Environmental
information
Water and marine
resources
Marine resources
Water discharges in the oceans
E3
Environmental
information
Water and marine
resources
Marine resources
Extraction and use of marine
resources
ESRS E4
E4
Environmental
information
Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Climate change
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E4
Environmental
information
Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Land-use change, fresh water-
use change and sea-use
change
E4
Environmental
information
Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Direct exploitation
E4
Environmental
information
Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Invasive alien species
E4
Environmental
information
Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Pollution
E4
Environmental
information
Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Other: fires
E4
Environmental
information
Biodiversity and
ecosystems
Impacts on the state of species
E4
Environmental
information
Biodiversity and
ecosystems
Impacts on the extent and condition of
ecosystems
E4
Environmental
information
Biodiversity and
ecosystems
Impacts and dependencies on ecosystem
services
ESRS E5
E5
Environmental
information
Circular economy Resources inflows, including resource use
E5
Environmental
information
Circular economy Resource outflows related to products and
services
E5
Environmental
Circular economy
Waste
ESRS S1
S1
Social
Own workforce
Working conditions
Secure employment
S1
Social
Own workforce
Working conditions
Working time
S1
Social
Own workforce
Working conditions
Adequate wages
S1
Social
Own workforce
Working conditions
Social dialogue
S1
Social
information
Own workforce
Working conditions
Freedom of association, the
existence of works councils and
the information, consultation
and participation rights of
workers
S1
Social
information
Own workforce
Working conditions
Collective bargaining, including
rate of workers covered by
collective agreements
S1
Social
Own workforce
Working conditions
Work-life balance
S1
Social
Own workforce
Working conditions
Health and safety
S1
Social
information
Own workforce
Equal treatment and opportunities for all
Gender equality and equal pay
for work of equal value
S1
Social
information
Own workforce
Equal treatment and opportunities for all
Training and skills development
S1
Social
information
Own workforce
Equal treatment and opportunities for all
Employment and inclusion of
persons with disabilities
S1
Social
information
Own workforce
Equal treatment and opportunities for all
Measures against violence and
harassment in the workplace
S1
Social
information
Own workforce
Equal treatment and opportunities for all
Diversity
S1
Social
Own workforce
Other work-related rights
Child labour
S1
Social
Own workforce
Other work-related rights
Forced labour
S1
Social
Own workforce
Other work-related rights
Privacy
ESRS S2
S2
Social
information
Workers in the
value chain
Working conditions
Secure employment
S2
Social
information
Workers in the
value chain
Working conditions
Working time
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S2
Social
information
Workers in the
value chain
Working conditions
Adequate wages
S2
Social
information
Workers in the
value chain
Working conditions
Social dialogue
S2
Social
information
Workers in the
value chain
Working conditions
Freedom of association, the
existence of works councils and
the information, consultation
and participation rights of
workers
S2
Social
information
Workers in the
value chain
Working conditions
Collective bargaining, including
rate of workers covered by
collective agreements
S2
Social
information
Workers in the
value chain
Working conditions
Work-life balance
S2
Social
information
Workers in the
value chain
Working conditions
Health and safety
S2
Social
information
Workers in the
value chain
Equal treatment and opportunities for all
Gender equality and equal pay
for work of equal value
S2
Social
information
Workers in the
value chain
Equal treatment and opportunities for all
Training and skills development
S2
Social
information
Workers in the
value chain
Equal treatment and opportunities for all
Employment and inclusion of
persons with disabilities
S2
Social
information
Workers in the
value chain
Equal treatment and opportunities for all
Measures against violence and
harassment in the workplace
S2
Social
information
Workers in the
value chain
Equal treatment and opportunities for all
Diversity
S2
Social
information
Workers in the
value chain
Other work-related rights
Child labour
S2
Social
information
Workers in the
value chain
Other work-related rights
Forced labour
S2
Social
information
Workers in the
value chain
Other work-related rights
Adequate housing (wellbeing of
security guards at work)
S2
Social
information
Workers in the
value chain
Other work-related rights
Privacy (personal data)
ESRS S3
S3
Social
information
Affected
communities
Communities' economic, social and cultural
rights
Adequate housing
S3
Social
information
Affected
communities
Communities' economic, social and cultural
rights
Water and sanitation
S3
Social
information
Affected
communities
Communities' economic, social and cultural
rights
Land-related impacts
S3
Social
information
Affected
communities
Communities' economic, social and cultural
rights
Security-related impacts
S3
Social
information
Affected
communities
Communities' civil and political rights
Freedom of expression
S3
Social
information
Affected
communities
Communities' civil and political rights
Freedom of assembly
S3
Social
information
Affected
communities
Communities' civil and political rights
Impacts on human rights
defenders
S3
Social
information
Affected
communities
Rights of indigenous peoples
Free, prior and informed
consent
S3
Social
information
Affected
communities
Rights of indigenous peoples
Self-determination
S3
Social
information
Affected
communities
Rights of indigenous peoples
Cultural rights (protection of
areas close to indigenous
communities)
ESRS S4
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47
S4
Social
information
Consumers and
end-users
Information-related impacts for consumers
and/or end-users
Privacy (personal data)
S4
Social
information
Consumers and
end-users
Information-related impacts for consumers
and/or end-users
Freedom of expression
S4
Social
information
Consumers and
end-users
Information-related impacts for consumers
and/or end-users
Access to (quality) information
S4
Social
information
Consumers and
end-users
Personal safety of consumers and/or end-
users
Health and safety
S4
Social
information
Consumers and
end-users
Social inclusion of consumers and/or end-
users
Access to products and services
S4
Social
information
Consumers and
end-users
Social inclusion of consumers and/or end-
users
Responsible marketing
practices
ESRS G1
G1
Governance
information
Business conduct
Corporate culture
G1
Governance
information
Business conduct
Protection of whistle-blowers
G1
Governance
information
Business conduct
Political engagement and lobbying
activities
G1
Governance
information
Business conduct
Management of relationships with
suppliers including payment practices
G1
Governance
information
Business conduct
Corruption and bribery
Incidents
G1
Governance
information
Business conduct
Corruption and bribery
Prevention and detection
including training
SPECIFIC ESRS
Specific
Guaranteed
quality of
service
Guaranteed
quality of service
Specific
Innovation
Innovation and
technology
applied to the
business
Below is the list of the topics, sub-topics and sub-sub-topics considered not applicable:
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Consolidated Management Report for 2024
List of not applicable topics, sub-topics and sub-sub-topics
ESRS
ESG
Topic
Sub-topic
Sub-sub-topic
ESRS S1
S1
Social
Own workforce
Other work-related rights
Adequate housing
ESRS S2
S2
Social
information
Workers in the value
chain
Other work-related rights
Water and sanitation
ESRS S3
S3
Social
information
Affected communities
Communities' economic, social
and cultural rights
Adequate food
ESRS S4
S4
Social
information
Consumers and end-
users
Personal safety of consumers
and/or end-users
Security of a person
S4
Social
information
Consumers and end-
users
Personal safety of consumers
and/or end-users
Protection of children
S4
Social
information
Consumers and end-
users
Social inclusion of consumers
and/or end-users
Non-discrimination
ESRS G1
G1
Governance
Business conduct
Animal welfare
b. Identification of impacts, risks and opportunities (IROs)
This phase involved identifying the impacts (impact materiality) Redeia has on people, human rights and the
environment in its own operations and in the rest of its value chains, whether positive or negative, and the
risks and opportunities (financial materiality) that affect or could affect the Company financially derived from
critical sector aspects and global sustainability trends. This process considered the links between the impacts
and dependencies on natural, human and social resources and the risks and opportunities that might arise
from these impacts and dependencies.
The analysis performed to identify the various impacts, risks and opportunities was undertaken in several
steps:
•
Understanding the Company and its operations.
•
Sector analyses based on public information reported by comparable companies.
•
Analysis of internal sources, including the Non-Financial Information Statement, the Sustainability
Statement, codes of ethics, corporate policies, prior materiality assessments and the corporate risk map
to analyse the inputs generated by Redeia in relation to its identified corporate risks.
•
Analysis of external sustainability sources and indices (GRI, TCFD, CDP, etc.).
The resulting list of impacts, risks and opportunities was then classified as follows:
General classification
Redeia business
Affected stakeholder group
•
ESG category
•
Standard
•
ESRS topic
•
ESRS sub-topic
•
ESRS sub-sub-topic
•
Red Eléctrica
•
Redinter
•
Reintel
•
Hispasat
•
Regulatory and government bodies
•
Economic and financial ecosystem
•
People
•
Customers
•
Suppliers
•
Business ecosystem
•
Social ecosystem
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49
Classification of impacts
Classification of risks and opportunities
•
Impact
•
Description of the impact
•
Impact mitigation measures
•
Location in the value chain
•
Categorisation of the impact
•
Positive | Negative
•
Actual | Potential
•
Time horizon: current and short-term (around 2024),
medium-term (around 2030), long-term (from 2030).
•
Risk | Opportunity
•
Description of the cause of the risk/opportunity
•
Position in the value chain
•
Categorisation of the risk/opportunity
•
Time horizon: current and short term (around
2024), medium-term (around 2030), long term
(from 2030).
•
How the financial effect plays out
Based on an initial identification of impacts, risks and opportunities, meetings were held with key
representatives from the vested parties to validate the definitive identified impacts, risks and opportunities.
c. Assessment of impacts, risks and opportunities
For this phase, Redeia again applied the criteria prescribed in the ESRS to determine which matters are
material to it. To do that it evaluated the impacts, risks and opportunities previously identified in the prior step
to determine their double materiality (from the perspectives of both impact and financial materiality), assigning
a score as a function of the impact generated or anticipated.
In addition, in order to align the materiality assessment processes recommended in the ESRS with Redeia's
internal processes, we used the scoring system followed in Redeia's corporate risk map.
Assessment of impact materiality
Four variables were considered to assess the impacts: scale, scope and irremediable character of the impact,
which shape their severity, and likelihood, in the case of potential impacts.
Severity
Scale
•
Intensity or size of the impact, whether positive or negative, on society or the
environment, on a scale of 1 to 5.
Scale of 1 to 5.
Where 1 is the
lowest value and
5 is the highest
Scope
•
How widespread the negative or positive impacts are. In the case of environmental
impacts, the scope may be understood as the extent of environmental damage or a
geographical perimeter, while in the case of impacts on people, the scope may be
understood as the number of people adversely affected.
Irremediable
character
•
Whether and to what extent the negative impacts could be remediated.
Likelihood
•
Probability that the impact, whether negative or positive, will materialise.
Assessment of financial materiality
In assessing risks and opportunities, the potential magnitude of the financial impacts and likelihood of
occurrence were both considered.
Financial effects
•
Effects caused by social or environmental factors that could have a negative (risks) or positive
(opportunities) impact on the Group's financial position.
Likelihood
•
Probability that the risk or opportunity will materialise. Anticipated financial effects are scored on a
scale of 1 to 5, 5 implying actual occurrence and 1 meaning highly improbable.
Having defined the various scales, each area manager proceeded to evaluate the impacts, risks and
opportunities.
d. Determining materiality
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Consolidated Management Report for 2024
This phase involves setting the thresholds for determining the material matters associated with the impacts,
risks and opportunities. The thresholds were defined on the basis of a process of understanding the results
yielded by the previous phases, with input from work groups, key areas and independent experts in order to
arrive at Redeia's material impacts, risks and opportunities.
e. Determination of the ESRS disclosure requirements associated with the material matters.
Having identified the impacts, risks and opportunities that surpass the defined thresholds, they were correlated
with the closest topic, sub-topic and sub-sub-topic to articulate the list of material topics for Redeia and, by
extension, the disclosure requirements addressed in this Sustainability Statement. The disclosure
requirements are provided in the next section (IRO-2).
11.1.2.2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability
statement. IRO-2
Following its double materiality assessment, Redeia concluded that seven of the 10 topics are material for
Redeia. Pollution (E2), Water and marine resources (E3) and Consumers and end-users (S4) were excluded
as the associated impacts, risks and opportunities (IROs) did not exceed the defined materiality thresholds.
Redeia also concluded that two entity-specific topics were material: guaranteed quality of service and
innovation.
List of material topics, sub-topics and sub-sub-topics
Topic
Sub-topic
Sub-sub-topic
E1- Climate change
Climate change adaptation
Climate change mitigation
Energy
E4 - Biodiversity and
ecosystems
Direct impact drivers of
biodiversity loss
Climate change
Direct impact drivers of
biodiversity loss
Land-use change, fresh water-use change and sea-use change
Direct impact drivers of
biodiversity loss
Other: fires
Impacts on the state of species
Species population size
E5 - Circular economy
Resources inflows, including
resource use
Waste
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S1 - Own workforce
Working conditions
Secure employment
Working conditions
Working time
Working conditions
Adequate wages
Working conditions
Social dialogue
Working conditions
Freedom of association, the existence of works councils and the
information, consultation and participation rights of workers
Working conditions
Collective bargaining, including rate of workers covered by
collective agreements
Working conditions
Work-life balance
Working conditions
Health and safety
Equal treatment and
opportunities for all
Working conditions
Gender equality and equal pay for work of equal value
Secure employment
Privacy
Working conditions
Working time
Working conditions
Adequate wages
Working conditions
Social dialogue
Working conditions
Freedom of association, the existence of works councils and the
information, consultation and participation rights of workers
Working conditions
Collective bargaining, including rate of workers covered by
collective agreements
Working conditions
Work-life balance
Working conditions
Gender equality and equal pay for work of equal value
Equal treatment and
opportunities for all
Training and skills development
Equal treatment and
opportunities for all
Employment and inclusion of persons with disabilities
Equal treatment and
opportunities for all
Diversity
S2 - Workers in the value
chain
Working conditions
Secure employment
Working conditions
Health and safety
Other work-related rights
Child labour
Other work-related rights
Forced labour
S3 – Affected communities Communities' economic, social
and cultural rights
Land-related impacts
G1 - Business conduct
Corporate culture
Protection of whistle-blowers
Management of relationships
with suppliers including payment
practices
Corruption and bribery
Prevention and detection including training
ES1 - Guaranteed quality of
service
Guaranteed quality of service
ES1 - Innovation
Innovation and technology
applied to the business
(1) Entity-specific topics
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Consolidated Management Report for 2024
List of topics, sub-topics and sub-sub-topics not considered material
Topic
Sub-topic
Sub-sub-topic
E2 - Pollution
Pollution of air
Pollution of water
Pollution of soil
Pollution of living organisms and food
resources
Substances of concern
Substances of very high concern
Microplastics
E3 - Water and
marine resources
Water
Water consumption
Water
Water withdrawals
Water
Water discharges (offices and vehicles)
Marine resources
Water discharges in the oceans
Marine resources
Extraction and use of marine resources
E4 - Biodiversity and
ecosystems
Direct impact drivers of biodiversity loss
Direct exploitation
Direct impact drivers of biodiversity loss
Invasive alien species
Direct impact drivers of biodiversity loss
Pollution
Impacts on the extent and condition of
ecosystems
Impacts and dependencies on
ecosystem services
E5 - Circular
economy
Resource outflows related to products
and services
S1 - Own workforce
Equal treatment and opportunities for all
Measures against violence and harassment in the workplace
Other work-related rights
Child labour
Forced labour
Privacy
S2 - Workers in the
value chain
Working conditions
Working time
Working conditions
Adequate wages
Working conditions
Social dialogue
Working conditions
Freedom of association, the existence of works councils and
the information, consultation and participation rights of workers
Working conditions
Collective bargaining, including rate of workers covered by
collective agreements
Working conditions
Work-life balance
Working conditions
Gender equality and equal pay for work of equal value
Equal treatment and opportunities for all
Training and skills development
Equal treatment and opportunities for all
Employment and inclusion of persons with disabilities
Equal treatment and opportunities for all
Measures against violence and harassment in the workplace
Equal treatment and opportunities for all
Diversity
Other work-related rights
Adequate housing (wellbeing of security guards at work)
Other work-related rights
Privacy (personal data)
Consolidated Management Report for 2024
53
S3 - Affected
communities
Communities' economic, social and
cultural rights
Adequate housing
Communities' economic, social and
cultural rights
Water and sanitation
Communities' civil and political rights
Security-related impacts
Communities' civil and political rights
Freedom of expression
Communities' civil and political rights
Freedom of assembly
Rights of indigenous peoples
Impacts on human rights defenders
Rights of indigenous peoples
Free, prior and informed consent
Rights of indigenous peoples
Self-determination
Communities' economic, social and
cultural rights
Cultural rights (protection of areas close to indigenous
communities)
S4 - Consumers and
end-users
Information-related impacts for
consumers and/or end-users
Privacy (personal data)
Information-related impacts for
consumers and/or end-users
Freedom of expression
Information-related impacts for
consumers and/or end-users
Access to (quality) information
Personal safety of consumers and/or
end-users
Health and safety
Social inclusion of consumers and/or
end-users
Access to products and services
Social inclusion of consumers and/or
end-users
Responsible marketing practices
G1 - Business
conduct
Business conduct
Political engagement and lobbying activities
In compliance with its requirements under the ESRS, below is the table of contents indicating where to find
the required disclosure requirements identified on the basis of the outcome of the materiality assessment
undertaken.
Disclosure requirements
General
information - ESRS 2
Section where they are disclosed
1. Basis for preparation of
general information
BP-1: General basis for preparation
of sustainability statements
a. General basis for preparation. BP-1.
BP-2: Disclosures in relation to
specific circumstances
b. Disclosures in relation to specific circumstances. BP-2.
54
Consolidated Management Report for 2024
2. Governance
GOV-1: The role of the
administrative, management and
supervisory bodies
a. The role of the administrative, management and
supervisory bodies. GOV-1.
GOV-2: Information provided to
and sustainability matters
addressed by the undertaking's
administrative, management and
supervisory bodies
b. Information provided to and sustainability matters
addressed by the undertaking's administrative,
management and supervisory bodies GOV-2.
GOV-3: Integration of
sustainability-related performance
in incentive schemes
c. Integration of sustainability-related performance in
incentive schemes. GOV-3.
GOV-4: Statement on due diligence d. Statement on due diligence. GOV-4.
GOV-5: Risk management and
internal controls over sustainability
reporting
e. Risk management and internal controls over
sustainability reporting.
3. Strategy
SBM-1: Strategy, business model
and value chain
a. Strategy, business model and value chain. SBM-1.
SBM-2: Interests and views of
stakeholders
b. Interests and views of stakeholders. SBM-2.
SBM-3: Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.2.4 Material impacts, risks and opportunities. SBM-3.
4. Impact, risk and opportunity
management
IRO-1: Description of the
processes to identify and assess
material impacts, risks and
opportunities
1.2.1 Double materiality assessment process. IRO-1.
IRO-2: Disclosure Requirements in
ESRS covered by the
undertaking's sustainability
statements
1.2.2 Disclosure requirements IRO-2.
MDR-P: Policies adopted to
manage material sustainability
matters
Provided throughout the respective chapter
MDR-A: Actions and resources in
relation to material sustainability
matters
Provided throughout the respective chapter
5. Metrics and targets
MDR-M: Metrics in relation to
material sustainability matters
Provided throughout the respective chapter
MDR-T: Tracking effectiveness of
policies and actions through targets Provided throughout the respective chapter
Appendix A: List of datapoints in
cross-cutting and topical
standards that derive from other
EU legislation
1.2.2 Disclosure requirements IRO-2.
Environmental
information - E1, E4, E5
Section where they are disclosed
E1- Climate change
1. Governance
GOV-3: Integration of
sustainability-related performance
in incentive schemes
a. Integration of sustainability-related performance in
incentive schemes. ESRS 2 GOV-3
Consolidated Management Report for 2024
55
2. Strategy
E1-1: Transition plan for climate
change mitigation
a. Transition plan for climate change mitigation. E1-1.
ESRS 2 SBM-3: Material impacts,
risks and opportunities and their
interaction with strategy and
business model
b. Material impacts, risks and opportunities and their
interaction with strategy and business model. ESRS 2
SBM-3
3. Impact, risk and opportunity
management
ESRS 2 IRO-1: Description of the
processes to identify and assess
material climate-related impacts,
risks and opportunities
a. Description of the processes to identify and assess
material impacts, risks and opportunities. ESRS IRO-1.
E1-2: Policies related to climate
change mitigation and adaptation
b. Policies related to climate change mitigation and
adaptation. E1-2 MDR-P
E1-3: Actions and resources in
relation to climate change policies
c. Actions and resources in relation to climate change
policies. E1-3 MDR-A.
4. Metrics and targets
E1-4: Targets related to climate
change mitigation and adaptation
a. Targets related to climate change mitigation and
adaptation. E1-4 MDR-T.
E1-5: Energy consumption and mix i. Energy consumption and mix. E1-5.
E1-6: Gross Scopes 1, 2, 3 and
Total GHG emissions
ii. Gross Scopes 1, 2, 3 and Total GHG emissions. E1-6.
E1-7: GHG removals and GHG
mitigation projects financed
through carbon credits
iii. GHG removals and GHG mitigation projects financed
through carbon credits. E1-7.
E1-8: Internal carbon pricing
scheme
iv. Internal carbon pricing scheme. E1-8.
E4 - Biodiversity and
1. Strategy
E4-1: Transition plan and
consideration of biodiversity and
ecosystems in strategy and
business model
a. Transition plan and consideration of biodiversity and
ecosystems in strategy and business model. E1-4.
ESRS 2 SBM-3: Material impacts,
risks and opportunities and their
interaction with strategy and
business model
b. Material impacts, risks and opportunities and their
interaction with strategy and business model. ESRS 2
SBM-3
2. Impact, risk and opportunity
management
ESRS 2 IRO-1: Description of
processes to identify and assess
material biodiversity and
ecosystem-related impacts, risks
and opportunities
a. Description of processes to identify and assess material
biodiversity and ecosystem-related impacts, risks and
opportunities. ESRS 2 IRO1.
E4-2: Policies related to
biodiversity and ecosystems
b. Policies related to biodiversity and ecosystems. E4-2.
E4-3: Actions and resources
related to biodiversity and
ecosystems
c. Actions and resources related to biodiversity and
ecosystems. E4-3.
3. Metrics and targets
E4-4: Targets related to biodiversity
and ecosystems
a. Targets related to biodiversity and ecosystems.
E4-5: Impact metrics related to
biodiversity and ecosystems
change
b. Impact metrics related to biodiversity and ecosystems
change.
E5 - Resource use and circular
economy
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Consolidated Management Report for 2024
1. Impact, risk and opportunity
management
ESRS 2 IRO-1: Description of the
processes to identify and assess
material resource use and circular
economy-related impacts, risks and
opportunities
a. Description of the processes to identify and assess
material resource use and circular economy-related
impacts, risks and opportunities. ESRS 2 IRO-1
E5-1: Policies related to resource
use or circular economy
b. Policies related to resource use or circular economy. E5-
1 MDR-P
E5-2: Actions and resources
related to resource use and circular
economy
c. Actions and resources related to resource use and
circular economy. E5-2 MDR-A
2. Metrics and targets
E5-3: Targets related to resource
use or circular economy
a. Targets related to resource use or circular economy. E5-
3 MDR-T
E5-4: Resource inflows
i. Resource inflows. E5-4 MDR-M
E5-5: Resource outflows
ii. Resource outflows. E5-5 MDR-M
Environmental
information - S1, S2, S3
Section where they are disclosed
S1 - Own workforce
1. Strategy
ESRS 2 SBM-2: Interests and
views of stakeholders
a. Interests and views of stakeholders. ESRS 2 SBM-2.
ESRS 2 SBM-3: Material impacts,
risks and opportunities and their
interaction with strategy and
business model
b. Material impacts, risks and opportunities and their
interaction with strategy and business model. ESRS 2
SBM-3.
2. Impact, risk and opportunity
management
S1-1: Policies related to own
workforce
a. Policies related to own workforce. S1-1 MDR-P.
S1-2: Processes for engaging with
own workers and workers'
representatives about impacts
b. Processes for engaging with own workers and workers'
representatives about impacts S1-2.
S1-3: Processes to remediate
negative impacts and channels for
own workers to raise concerns
c. Processes to remediate negative impacts and channels
for own workers to raise concerns. S1-3.
S1-4: Taking action on material
impacts on own workforce, and
approaches to mitigating material
risks and pursuing material
opportunities related to own
workforce, and effectiveness of
those actions
d. Taking action on material impacts on own workforce, and
approaches to mitigating material risks and pursuing
material opportunities related to own workforce, and
effectiveness of those actions. S1-4 and MDR-A
Consolidated Management Report for 2024
57
3. Metrics and targets
S1-5: Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
a. Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities. S1-5 MDR-T.
S1-6: Characteristics of the
undertaking's employees
i. Characteristics of the undertaking's employees. S1-6
MDR-M
S1-8: Collective bargaining
coverage and social dialogue
ii. Collective bargaining coverage and social dialogue. S1-8
MDR-M
S1-9: Diversity metrics
iii. Diversity metrics. S1-9 MDR-M
S1-10: Adequate wages
iv. Adequate wages. S1-10.
S1-12: Persons with disabilities
v. Persons with disabilities. S1-12 MDR-M
S1-14: Health and safety metrics
vi. Health and safety metrics. S1-14 MDR-M
S1-16: Compensation metrics (pay
gap and total compensation)
vii. Compensation metrics (pay gap and total
compensation). S1-16 MDR-M
S1-17: Impact, complaints and
severe human rights impacts
viii. Impact, complaints and severe human rights impacts.
S1-17 MDR-M.
S2 - Workers in the value chain
1. Strategy
ESRS 2 SBM-2: Interests and
views of stakeholders
a. Interests and views of stakeholders. SBM-2.
ESRS 2 SBM-3: Material impacts,
risks and opportunities and their
interaction with strategy and
business model
b. Material impacts, risks and opportunities and their
interaction with strategy and business model. SBM-3.
2. Impact, risk and opportunity
management
S2-1: Policies related to value
chain workers
a. Policies related to value chain workers. S2-1 MDR-P
S2-2: Processes for engaging with
value chain workers about impacts
b. Processes for engaging with value chain workers about
impacts. S2-2.
S2-3: Processes to remediate
negative impacts and channels for
value chain workers to raise
concerns
c. Processes to remediate negative impacts and channels
for value chain workers to raise concerns. S2-3.
S2-4: Taking action on material
impacts on value chain workers,
and approaches to managing
material risks and pursuing
material opportunities related to
value chain workers, and
effectiveness of those actions
d. Taking action on material impacts on value chain
workers, and approaches to managing material risks and
pursuing material opportunities related to value chain
workers, and effectiveness of those actions. S2-4.
3. Metrics and targets
S2-5: Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
a. Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities. S2-5 MDR-T.
S3 - Affected communities
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Consolidated Management Report for 2024
1. Strategy
ESRS 2 SBM-2: Interests and
views of stakeholders
a. Interests and views of stakeholders. SBM-2.
ESRS 2 SBM-3: Material impacts,
risks and opportunities and their
interaction with strategy and
business model
b. Material impacts, risks and opportunities and their
interaction with strategy and business model. SBM-3.
2. Impact, risk and opportunity
management
S3-1: Policies related to affected
communities
a. Policies related to affected communities. S3-1 MDR-P
S3-2: Processes for engaging with
affected communities about
impacts
b. Processes for engaging with affected communities about
impacts. S3-2
S3-3: Processes to remediate
negative impacts and channels for
affected communities to raise
concerns
c. Processes to remediate negative impacts and channels
for affected communities to raise concerns. S3-3.
S3-4: Taking action on material
impacts on affected communities,
and approaches to managing
material risks and pursuing
material opportunities related to
affected communities, and
effectiveness of those actions
d. Taking action on material impacts on affected
communities, and approaches to managing material risks
and pursuing material opportunities related to affected
communities, and effectiveness of those actions. S3-4.
3. Metrics and targets
S3-5: Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
a. Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities. S3-5 MDR-T.
Environmental
information - G1
Section where they are disclosed
G1 - Business conduct
1. Governance
ESRS 2 GOV-1: The role of the
administrative, management and
supervisory bodies
a. The role of the administrative, management and
supervisory bodies. GOV-1.
ESRS 2 IRO-1: Description of the
processes to identify and assess
material impacts, risks and
opportunities
b. Description of the processes to identify and assess
material impacts, risks and opportunities. IRO-1.
2. Impact, risk and opportunity
management
G1-1: Corporate culture and
business conduct policies and
corporate culture
a. Corporate culture and business conduct policies and
corporate culture. G1-1, G1-3.
G1-2: Management of relationships
with suppliers
b. Management of relationships with suppliers. G1-2.
G1-3: Prevention and detection of
corruption and bribery
c. Prevention and detection of corruption and bribery. G1-1,
G1-3.
3. Metrics and targets
G1-4: Confirmed incidents of
corruption or bribery
Confirmed incidents of corruption or bribery
G1-6: Payment practices
Payment practices
Entity-specific topics
Section where they are disclosed
Guaranteed quality of service
Guaranteed quality of service
Guaranteed quality of service
4.2 - Guaranteed quality of service
Innovation
Innovation and technology
applied to the business
Innovation and technology applied
to the business
4.3 Innovation and technology applied to the business
Consolidated Management Report for 2024
59
Elsewhere, Appendix 2 provides the list of datapoints derived from other EU legislation, as defined in ESRS
2 Appendix B.
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure
Requirement and
related datapoint
SFDR reference
(1)
Pillar 3 reference
Benchmark
Regulation
reference
EU
Climate Law
reference
Material
Yes/No
Section where they are
disclosed
ESRS 2 GOV-1
Board's gender
diversity paragraph
21 (d)
Indicator number
13 of Table #1 of
Annex 1
Commission
Delegated
Regulation (EU)
2020/1816 (4),
Annex I
Yes
1.1.3 Governance
a) The role of the administrative,
management and supervisory
bodies. GOV-1
ESRS 2 GOV-1
Percentage of
board members
who are
independent
paragraph 21 (e)
Delegated
Regulation (EU)
2020/1816 (4),
Annex II
Yes
1.1.3 Governance
a) The role of the administrative,
management and supervisory
bodies. GOV-1
ESRS 2 GOV-4
Statement on due
diligence paragraph
30
Indicator number
10 Table #3 of
Annex 1
Yes
1.1.3 Governance
d) Statement on due diligence.
GOV-4
ESRS 2 SBM-1
Involvement in
activities related to
fossil fuel activities
paragraph 40 (d) i
Indicator number 4
of Table #1 of
Annex 1
Article 449a Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453 (5)
Table
1: Qualitative information on
Environmental risk and Table 2:
Qualitative information on Social
risk
Delegated
Regulation (EU)
2020/1816 (4),
Annex II
Yes
Redeia is not involved in
activities related to fossil fuel
activities.
ESRS 2 SBM-1
Involvement in
activities related to
chemical production
paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex
1
Delegated
Regulation (EU)
2020/1816 (4),
Annex II
Yes
Redeia is not involved in
activities related to chemical
production.
ESRS 2 SBM-1
Involvement in
activities related to
controversial
weapons paragraph
40 (d) iii
Indicator number
14 Table #1 of
Annex 1
Delegated
Regulation (EU)
2020/1818 (6),
Article 12
(1) Delegated
Regulation (EU)
2020/1816 (4),
Annex II
Yes
Redeia is not involved in
activities related to controversial
weapons.
ESRS 2 SBM-1
Involvement in
activities related to
cultivation and
production of
tobacco paragraph
40 (d) iv
Delegated
Regulation (EU)
2020/1818 (6),
Article 12
(1) Delegated
Regulation (EU)
2020/1816 (4),
Annex II
Yes
Redeia is not involved in
activities related to cultivation
and production of tobacco.
ESRS E1-1
Transition plan to
reach climate
neutrality by 2050
paragraph 14
Regulation (EU)
2021/1119 (3),
Article 2(1)
Yes
2.2.2 Strategy.
a. Transition plan for climate
change mitigation. E1-1
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Consolidated Management Report for 2024
ESRS E1-1
Undertakings
excluded from
Paris-aligned
Benchmarks
paragraph 16 (g)
Article 449a
Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453 (5);
Template 1: Banking book-Climate
Change transition risk: Credit
quality of exposures by sector,
emissions and residual maturity
Delegated
Regulation (EU)
2020/1818 (6),
Article12.1 (d) to
(g), and Article 12
(2)
Yes
2.2.2 Strategy.
a. Transition plan for climate
change mitigation. E1-1
ESRS E1-4
GHG emission
reduction targets
paragraph 34
Indicator number 4
Table #2 of Annex
1
Article 449a
Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453
(5)Template 3: Banking book –
Climate change transition risk:
alignment metrics
Delegated
Regulation (EU)
2020/1818 (6),
Article 6
Yes
2.2.4 Metrics and targets.
a. Targets related to climate
change mitigation and
adaptation. E1-4 MDR-T
ESRS E1-5
Energy
consumption from
fossil sources
disaggregated by
sources (only high
climate impact
sectors) paragraph
38
Indicator number 5
Table #1 and
Indicator n. 5 Table
#2 of
Annex 1
Yes
2.2.4 Metrics and targets.
b. Metrics related to climate
change mitigation and
adaptation. MDR-M.
i. Energy consumption and mix.
E1-5.
ESRS E1-5 Energy
consumption and
mix paragraph 37
Indicator number 5
of Table #1 of
Annex 1
Yes
2.2.4 Metrics and targets.
b. Metrics related to climate
change mitigation and
adaptation. MDR-M.
i. Energy consumption and mix.
E1-5.
ESRS E1-5
Energy intensity
associated with
activities in high
climate impact
sectors paragraphs
40 to 43
Indicator number 6
of Table #1 of
Annex 1
Yes
2.2.4 Metrics and targets.
b. Metrics related to climate
change mitigation and
adaptation. MDR-M.
i. Energy consumption and mix.
E1-5.
ESRS E1-6
Gross Scope 1, 2, 3
and Total GHG
emissions
paragraph 44
Indicators number
1 and 2 Table #1
of Annex 1
Article 449a Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453 (5)
Template 1: Banking book-Climate
Change transition risk: Credit
quality of exposures by sector,
emissions and residual maturity
Delegated
Regulation (EU)
2020/1818 (6),
Article 5(1),
6 and 8(1)
Yes
2.2.4 Metrics and targets.
b. Metrics related to climate
change mitigation and
adaptation. MDR-M.
iii. GHG removals and GHG
mitigation projects financed
through carbon credits. E1-6.
ESRS E1-6
Gross GHG
emissions intensity
paragraphs 53 to 55
Indicator number 3
of Table #1 of
Annex 1
Article 449a Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453 (5)
Template 3: Banking book –
Climate change transition risk:
alignment metrics
Delegated
Regulation (EU)
2020/1818 (6),
Article 8(1)
Yes
2.2.4 Metrics and targets.
b. Metrics related to climate
change mitigation and
adaptation. MDR-M.
ii. Gross Scopes 1, 2, 3 and
Total GHG emissions. E1-6.
ESRS E1-7
GHG removals and
carbon credits
paragraph 56
Regulation (EU)
2021/1119 (3),
Article 2(1)
Yes
2.2.4 Metrics and targets.
b. Metrics related to climate
change mitigation and
adaptation. MDR-M.
iii. GHG removals and GHG
mitigation projects financed
through carbon credits. E1-6.
ESRS E1-9
Exposure of the
benchmark portfolio
to climate-related
physical risks
paragraph 66
Delegated
Regulation (EU)
2020/1818 (6),
Annex II
Delegated
Regulation (EU)
2020/1816 (4),
Pending
Consolidated Management Report for 2024
61
ESRS E1-9
Disaggregation of
monetary amounts
by acute and
chronic physical risk
paragraph 66 (a)
ESRS E1-9
Location of
significant assets at
material physical
risk paragraph 66
(c).
Article 449a Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453 (5)
paragraphs 46 and 47;
Template 5. Banking book -
Climate change physical risk:
Exposures subject to physical risk.
Yes
Pending
ESRS E1-9
Breakdown of the
carrying value of its
real estate assets
by energy-efficiency
classes paragraph
67 (c).
Article 449a Regulation (EU)
No 575/2013 (2);
Commission Implementing
Regulation (EU) 2022/2453 (5),
paragraph 34; Template 2:
Banking book -Climate change
transition risk: Loans collateralised
by immovable property - Energy
efficiency of the collateral
Yes
Pending
ESRS E1-9
Degree of exposure
of the portfolio to
climate- related
opportunities
paragraph 69
Delegated
Regulation (EU)
2020/1818 (6),
Annex II
Yes
Pending
ESRS E2-4
Amount of each
pollutant listed in
Annex II of the E-
PRTR Regulation
(European Pollutant
Release and
Transfer Register)
emitted to air, water
and soil, paragraph
28
Indicator number 8
Table #1 of Annex
1 Indicator number
2 Table #2 of
Annex 1 Indicator
number 1 Table #2
of Annex 1
Indicator number 3
Table #2 of Annex
1
No
Not material
ESRS E3-1
Water and marine
resources
paragraph 9
Indicator number 7
Table #2 of Annex
1
No
Not material
ESRS E3-1
Dedicated policy
paragraph 13
Indicator number 8
Table #2 of Annex
1
No
Not material
ESRS E3-1
Sustainable oceans
and seas paragraph
14
Indicator number
12 Table #2 of
Annex 1
No
Not material
ESRS E3-4
Total water recycled
and reused
paragraph 28 (c)
Indicator number
6.2 Table #2 of
Annex 1
No
Not material
ESRS E3-4
Total water
consumption in m3
per net revenue on
own operations
paragraph 29
Indicator number
6.1 Table #2 of
Annex 1
No
Not material
ESRS 2- IRO 1 - E4
paragraph 16 (a) i
Indicator number 7
Table #1 of Annex
1
(1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in
the financial services sector (OJ L 317, 9.12.2019, p. 1).
(2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and
investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation "CRR") (OJ L 176, 27.6.2013, p. 1).
62
Consolidated Management Report for 2024
(3) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate
neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law') (OJ L 243, 9.7.2021, p. 1).
(4) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of
the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each
benchmark provided and published (OJ L 406, 3.12.2020, p. 1).
(5) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in
Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324,19.12.2022, p.1.).
(6) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of
the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).
Redeia has implemented policies that address several material matters, tackling more than one topic or sub-
topic, so that they are cross-referenced throughout this Sustainability Statement.
Note, additionally, the scope of these policies includes Redeia's own operations as well as its value chain.
11.1.2.3 Policies
Policy
Description of the key
contents of the policy
p.65 a
Scope and exclusions
p.65 b
The most senior
level in the
undertaking's
organisation that is
accountable for its
implementation
65
Commitment to
third-party
standards or
initiatives
p.65 d
Consideration
given to the
interests of key
stakeholders in
setting the policy
p.65 e
How the policy
is made
available to
stakeholders
p.65 f
Sustainability
Policy
This policy sets out Redeia's
sustainability-related principles,
guiding all activities towards a
responsible management model,
focused on excellence and value
creation for stakeholders and
maximising Redeia's contribution
to the Sustainable Development
Goals.
All of the companies
majority-owned by Redeia.
At investees over which
Redeia does not have
effective control, principles
aligned with those
enshrined in this policy are
encouraged.
Board of Directors
and Corporate
Sustainability and
Studies Department
Sustainable
Development
Goals
Redeia considers
the interests of its
stakeholders in
setting the contents
of its corporate
policies
Redeia corporate
website
Environmental
Policy
This policy sets out Redeia's
environmental policies, designed
to ensure delivery of its
commitment to conserving and
enhancing the environment
across all its activities, facilities
or services throughout their life
cycle, including distribution and
logistics, in response to
stakeholder needs and
expectations
All of the companies
majority-owned by Redeia.
At investees over which
Redeia does not have
effective control, principles
aligned with those
enshrined in this policy are
encouraged. Redeia also
strives to have similar
principles applied by its
business partners,
including joint
arrangements of any kind.
Redeia likewise fosters the
application of the principles
enshrined in this policy at
the contractors, suppliers
and other actors that
collaborate with Redeia or
act on its behalf.
Board of Directors
and Corporate
Sustainability and
Studies Department
This policy does
not cross reference
third-party
standards or
initiatives
Redeia considers
the interests of its
stakeholders in
setting the contents
of its corporate
policies
Redeia corporate
website
Personnel Policy
This policy sets out the
principles that govern the
management of the people
comprising Redeia through
leadership, efficiency,
innovation, cultural
transformation and personal and
professional fulfilment, focusing
on the employee experience.
All of the companies
majority-owned by Redeia.
At investees over which
Redeia does not have
effective control, principles
aligned with those
enshrined in this policy are
encouraged.
Board of Directors
and Corporate
People and Culture
Department
This policy does
not cross reference
third-party
standards or
initiatives
Redeia considers
the interests of its
stakeholders in
setting the contents
of its corporate
policies
Redeia corporate
website
Consolidated Management Report for 2024
63
Supply Chain
Policy
This policy sets out the
principles governing the supply
chain in order to ensure that the
goods and services Redeia
needs are provided efficiently
and to the required quality
standards and are aligned with
its commitment to contribute to
sustainable economic and social
development.
All of the companies
majority-owned by Redeia.
At investees over which
Redeia does not have
effective control, principles
aligned with those
enshrined in this policy are
encouraged.
Board of Directors
and Corporate
Procurement
Department
This policy does
not cross reference
third-party
standards or
initiatives
Redeia considers
the interests of its
stakeholders in
setting the contents
of its corporate
policies
Redeia corporate
website
Compliance
Policy
This policy sets out the
principles governing Redeia's
commitment to the prevention
and detection of, and response
to,
any unlawful conduct or any
action in breach of the
commitments it has assumed
voluntarily.
All of the companies
majority-owned by Redeia.
At investees over which
Redeia does not have
effective control, principles
aligned with those
enshrined in this policy are
encouraged.
Board of Directors
and Internal Audit
and Risk
Control Department
This policy does
not cross reference
third-party
standards or
initiatives
Redeia considers
the interests of its
stakeholders in
setting the contents
of its corporate
policies
Redeia corporate
website
Code of Ethics
and Conduct
The code applies to all of the
people comprising Redeia and
stipulates and facilitates
commitment to the ethical
values, principles and standards
of conduct that must inform their
professional activity within the
organisation.
All of the companies
majority-owned by Redeia.
The governing bodies of
companies of which
Redeia is not a majority
shareholder, or over which
it does not exert control,
are encouraged to likewise
endorse the code.
Board of Directors
and Internal Audit
and Risk
Control Department
The Sustainable
Development
Goals, Ten
Principles of the
Global Compact
and Universal
Declaration of
Human Rights and
its implementing
conventions and
the
recommendations
emanating from the
Organisation for
Economic Co-
operation and
Development
(OECD), the
International
Labour
Organization (ILO)
and Transparency
International,
Redeia considers
the interests of its
stakeholders in
setting the contents
of its corporate
policies
Redeia corporate
website
11.1.2.4
Material impacts, risks and opportunities. SBM-3
Redeia provides its response to this disclosure requirement for each applicable topic in the corresponding
chapters of this Sustainability Statement.
Material impacts
Standard
ESRS sub-topic
ESRS sub-
sub-topic
Impact
Description
Position of the
impact in the
value chain
Positi
ve |
Negat
ive
Actual |
Potential
Time
horizon (*)
1
E1
Climate change
mitigation
Emissions savings in
the electricity system.
Facilitation of the integration
of renewable energy implies
a reduction in emissions
across the electricity system
as a whole.
Cross-cutting
P
Actual
S, M, L
2
E1
Energy
Integration of renewable
energy into own
operations in the
electricity system.
Redeia participates actively in
the energy transition towards
an emissions-free model by
committing strategically to the
electrification of the economy
and efficient integration of
renewable energy sources.
Own operations P
Actual
S, M, L
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Consolidated Management Report for 2024
3
E1
Climate change
adaptation
Adapting the electricity
system infrastructure for
climate change.
Redeia's own operations
(construction of new
infrastructure and meshing of
the transmission grid) make a
significant contribution to
making the electricity system
(and society as a whole, by
extension) more resilient vis-
a-vis adverse climate
phenomena and changes in
electricity generation/demand
derived from climate change.
In addition, Redeia identifies
and assesses the risks
associated with climate
change considering short,
medium and long-term
horizons, defining the
adaptation measures needed
for each horizon. Adaptation
of the infrastructure of Red
Eléctrica (specifically) not
only favours the adaptation of
its own operations, but it also
helps make the overall
electricity system more
resilient.
Cross-cutting
P
Actual
S, M, L
4
E1
Climate change
adaptation
Adapting electricity
system operations for
climate change.
Redeia has developed
system operation tools,
adapting them for the most
stringent monitoring and
control requirements, and has
designed a number of
renewable generation
prediction models and
mechanisms for catering to
demand more flexibly that
contribute to the resilience of
the electricity system (and
thereby of society as a whole)
vis-a-vis adverse climate
phenomena and/or changes
in climate parameters that
could affect electricity
generation, transmission or
demand.
Cross-cutting
P
Actual
S, M, L
6
E1
Energy
Consumption of energy
from non-renewable
sources in Redeia's own
operations.
Consumption of energy from
non-renewable sources in
Redeia's own operations.
Own operations N
Actual
S, M, L
7
E1
Climate change
mitigation
Direct GHG emissions
(Scope 1).
At Redeia, the main source of
GHG emissions are SF6 gas
leaks from its own facilities.
The rest of its Scope 1
emissions stem from its fleet
of vehicles, the use of air
conditioning and heating at its
facilities and back-up
generators.
Own operations N
Actual
S, M, L
8
E1
Climate change
mitigation
Direct GHG emissions
(Scope 2).
Scope 2 emissions are the
indirect greenhouse gas
emissions associated mainly
with energy losses from the
transmission grid and the
electricity consumed by the
organisation.
Direct and
indirect
suppliers &
Own operations
N
Actual
S, M, L
9
E1
Climate change
mitigation
Direct GHG emissions
(Scope 3).
Scope 3 emissions are those
generated by Redeia's value
chain.
Direct and
indirect
suppliers
N
Actual
S, M, L
Consolidated Management Report for 2024
65
11
E4
Direct impact
drivers of
biodiversity loss
Land-use
change
Land-use change that
can trigger change in
the vegetation cover
and erosive processes
The construction of
substations and land lines in
Redeia's own operations can
imply a land-use change,
understood as a change of
use that may lead to a
change in soil coverage.
Own operations N
Actual
S
12
E4
Direct impact
drivers of
biodiversity loss
Climate
change
GHG emissions -
SF6gas
At Redeia, the main source of
GHG emissions are SF6 gas
leaks from its own facilities.
The rest of its Scope 1
emissions stem from its fleet
of vehicles, the use of air
conditioning and heating at its
facilities and back-up
generators.
Own operations N
Actual
L
13
E4
Direct impact
drivers of
biodiversity loss
Other
Accidental fires
Fires generated as a result of
breaches in safety distances
between voltage elements
and the surrounding
vegetation can start fires.
Inadequate construction and
maintenance work can also
start accidental fires
Own operations N
Actual
S
14
E4
Impacts on the
state of species
Species
global
extinction
risk
Bird collisions with
ground wires
The presence of ground wires
in Redeia's own operations
can pose a collision risk for
birds. Electrical wires,
especially those located in
open areas or close to bird
habitats, may be perceived
as obstacles, causing birds to
crash into them during flight.
Own operations N
Actual
S
15
E5
Resources inflows,
including resource
use
Scarcity of finite
resources due to
equipment designs that
do not consider the
entire life cycle
Designing materials and
equipment without
considering their life cycle or
circularity contributes to the
scarcity of resources, an
increase in waste and the
emission of pollution into the
air.
Direct and
indirect
suppliers
N
Actual
S
16
E5
Waste
Waste generation
Generation of hazardous
waste during construction
operations or renewal of
electrical and fibre optic
facilities
Own operations N
Actual
S
17
Entity-
specific
Guaranteed quality
of service
Guaranteeing the
quality of electricity
supply and connectivity
of all of Redeia's
services.
Redeia offers its customers
reliable, quality service. This
is especially important in
critical sectors such as
health, education and
security, where the
interruption of the electricity
supply or connectivity can
have grave consequences.
By keeping its infrastructure
in robust and reliable
condition, Redeia can help
improve the quality of life in
its local communications,
generating a positive impact
on the local economy.
Own operations P
Actual
S
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Consolidated Management Report for 2024
18
Entity-
specific
Innovation and
technology applied
to the business
Innovation,
technological
development, advances
in digitalisation
associated with
Redeia's business
activities that enhance
the services provided.
By implementing innovative
services and leveraging
opportunities for digitalisation,
the Group can boost its
efficiency, productivity and
competitiveness. This in turn
allows it to satisfy its
customers' evolving needs,
stay relevant in a dynamic
business environment and
make the most of new
opportunities for growth.
Own operations P
Actual
S
19
G1
Corruption and
bribery
Prevention
and
detection
including
training
Compliance with ethics
standards and effective
prevention of corruption
and bribery upstream
and downstream.
Compliance with the ethics
standards set down in the
Annual Awareness and
Training Plan.
Direct and
indirect
suppliers &
Customers and
end-users
P
Actual
S
20
G1
Corporate culture
Breach of the code of
ethics due to its weak
embedment in Redeia's
own operations.
Code of conduct breaches by
Redeia employees as a result
of its weak embedment.
Own operations N
Actual
S
21
S1
Working conditions
Work-life
balance
Fostering work-life
balance for employees.
Redeia helps its employees
achieve work-life balance by
articulating a raft of measures
and facilitating employee
communication via the Work-
Life Balance Officer, who
provides individual responses
to personal situations raised
in this area, such as the need
for shorter or more flexible
hours, more flexible work
spaces, family support or
equal opportunities.
Own operations P
Actual
S
22
S1
Working conditions
Health and
safety
Impact on employee
health of injuries caused
by certain occupational
activities.
Certain activities required on
the job at Redeia could
expose employees to the risk
of workplace injuries or cause
harm to their mental or
physical health.
Own operations N
Potential
S
23
S1
Working conditions
Social
dialogue
Encouraging dialogue
between management
and worker
representatives can
have a positive impact
on employees' working
conditions.
Redeia guarantees the right
to trade union membership,
association and collective
bargaining within the
framework of the provisions
of the International Labour
Organization (ILO), the
Spanish Constitution,
prevailing employment law
and the relevant collective
bargaining agreements in
effect.
Own operations P
Actual
S
24
S1
Working conditions
Secure
employment
Permanent contracts.
By committing strategically to
permanent contracts, workers
are hired indefinitely,
generating income stability
while also reinforcing job
security.
Own operations P
Actual
S
Consolidated Management Report for 2024
67
24
S1
Working conditions
Freedom of
association,
the existence
of works
councils and
the
information,
consultation
and
participation
rights of
workers
Guaranteeing
employees' freedom of
association and right to
union membership to
help analyse, promote
and defend workers'
shared interests.
Redeia encourages union
membership and repudiates
coercion to not unionise or
any retaliation in this regard.
Freedom of association is
understood in the broadest
sense, from both the
individual and collective
perspectives, so as to
guarantee the ability to
perform the activities needed
to form a union and
acknowledging that its
purpose is to defend shared
interests.
Own operations P
Actual
S
26
S1
Working conditions
Adequate
wages
Definition of adequate
wages.
Adequate wages lead to
employee motivation and job
satisfaction. When
employees feel valued and
adequately compensated for
their work, their commitment
and productivity improve.
This in turn has a positive
impact on the quality of their
work and on the
organisation's overall
efficiency.
Own operations P
Actual
S
27
S1
Working conditions
Adequate
wages
Recognition of the
contribution made by
employees through
remuneration processes
and a total
compensation model.
Redeia's compensation
model recognises its
employees' contributions by
articulating remuneration
policies that reward top
performances while ensuring
internal fairness.
Own operations P
Actual
S
28
S1
Working conditions
Health and
safety
Favouring employee
wellbeing by means of
the healthy organisation
management system
and the prevention of
occupational injuries or
illnesses.
Redeia's health organisation
management system looks
beyond the prevention of
occupational injuries and
illnesses by addressing
personal and family lifestyles,
seeking to implement a
culture conducive to being a
healthy organisation, thereby
improving Redeia's local
communities in the process.
Note that the healthy
organisation management
system covers 100% of
Redeia's headcount.
Own operations P
Actual
S
29
S1
Working conditions
Working time
Improving the quality of
life of Redeia
employees by providing
them with flexibility
around their working
times.
Redeia provides its
employees with sufficient free
time, so generating a positive
impact on their health and
wellbeing. Free time is crucial
to allow employees to rest,
recover and strike a work-life
balance. With enough time to
rest and disconnect from
work, employees can avoid
experiencing high levels of
stress, exhaustion or loss of
motivation.
Own operations P
Actual
S
30
S1
Equal treatment
and opportunities
for all
Diversity
A diverse and inclusive
workplace that fosters
employee wellbeing and
generates fair
opportunities.
Redeia has a comprehensive
diversity Plan for the coming
years (2023- 2025),
articulated around three lines
of initiative: gender equality
and equal opportunities; age
management; and the
inclusion of people with
disabilities.
Own operations P
Actual
S
68
Consolidated Management Report for 2024
31
S1
Equal treatment
and opportunities
for all
Gender
equality and
equal pay for
work of equal
value
Fair monetary
compensation and
elimination of gender
inequalities.
Redeia offers the same
opportunities for development
and promotion to all, without
considering gender as a
determining factor, rather
focusing on performance and
length of service, an
approach that tends to
balance out its employees'
compensation over time.
Own operations P
Actual
S
32
S1
Working conditions
Health and
safety
Fatalities caused by
certain occupational
activities.
Certain activities required on
the job at Redeia could
expose employees to the risk
of fatal workplace injuries.
Own operations N
Potential
S
33
S1
Working conditions
Collective
bargaining,
including rate
of workers
covered by
collective
agreements
Improving working
conditions through
collective bargaining
Redeia guarantees the right
to trade union membership,
association and collective
bargaining within the
framework of the provisions
of the International Labour
Organization (ILO), the
Spanish Constitution,
prevailing employment law
and the relevant collective
bargaining agreements in
effect.
Own operations P
Actual
S
34
S1
Equal treatment
and opportunities
for all
Diversity
Lack of equal
opportunities due to the
gender gap at Redeia.
For Redeia a gender gap
may indicate that women are
being given fewer
opportunities for employment,
promotion or career
development by comparison
with others, harming the
firm's image and reputation
as a result.
Own operations N
Actual
S
35
S2
Working conditions
Health and
safety
Redeia customer
employee injuries.
Accidental injuries.
Customers and
end-users
N
Actual
M
36
S2
Working conditions
Health and
safety
Injuries or unhealthy
working conditions for
workers at Redeia
suppliers due to the
absence of adequate
protective gear.
Value chain workers are at
risk of sustaining injuries or
unhealthy working conditions
when they do not receive
appropriate personal
protective equipment and/or
work in dangerous
environments (e.g., removal
of hazardous waste) without
implementing protection
measures.
Direct and
indirect
suppliers
N
Actual
M
37
S2
Other work-related
rights
Forced
labour
Zero tolerance of forced
labour in Redeia's
supply chain.
Commitment to respect for
human rights and training
focused on human rights
management in collaboration
with the Spanish chapter of
the Global Compact. In 2024,
Redeia did not receive any
claims related with human
rights abuses in its supply
chain; not was any contract
or order cancelled on these
grounds.
Direct and
indirect
suppliers
P
Actual
S
Consolidated Management Report for 2024
69
38
S2
Other work-related
rights
Child labour
Zero tolerance of child
labour in Redeia's
supply chain.
Commitment to respect for
human rights and training
focused on human rights
management in collaboration
with the Spanish chapter of
the Global Compact. In 2024,
Redeia did not receive any
claims related with human
rights abuses in its supply
chain; nor was any contract
or order cancelled on these
grounds.
Direct and
indirect
suppliers
P
Actual
S
39
S2
Working conditions
Secure
employment
Guaranteeing that
Redeia supply chain
employee hires are fair
and uphold labour
standards.
The idea behind getting
suppliers to endorse the
Code of Conduct for
Suppliers at the start of the
supplier screening,
certification and scoring
process is to ensure the
selection of suppliers that are
suitable for forming part of
Redeia's database. This
code, which is part of the
contractual documentation as
per the general contracting
conditions, stipulates the
ethics and conduct standards
that Redeia's suppliers must
uphold.
By establishing this
requirement at the start of the
supplier registration process,
we foster a culture of
responsibility and ethics
across Redeia's supply chain.
This in turn helps build solid
and trustworthy supplier
relations underpinned
through a commitment to
comply with the standards set
and conduct themselves
ethically in all of their
operations.
Direct and
indirect
suppliers
P
Actual
S
40
S2
Working conditions
Health and
safety
Establishing controls to
ensure due
protection of
the health
and safety
of all supply
chain
workers.
The Code of Conduct for
Suppliers, which hails from
Redeia's Code of Ethics and
Conduct, establishes
minimum requirements
around ethical, social and
environmental matters which
all suppliers must accept and
comply with in order to work
with Redeia and which
suppliers must extend to their
own supply chains. Redeia
conducts social audits for two
reasons. Firstly, to verify due
compliance with the code by
suppliers and secondly to
transmit the organisation's
sustainability principles.
Direct and
indirect
suppliers
P
Actual
S
41
S3
Communities'
economic, social
and cultural rights
Land-related
impacts
Easement or
expropriation of land for
the location of sites.
Use of part of the land or
expropriation of land where
necessary to locate a support
tower or substation.
Own operations N
Actual
S
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Consolidated Management Report for 2024
Material risks
Standard
ESRS sub-topic
ESRS sub-
sub-topic
Risk| Opportunity
Description of the cause of
the risk/opportunity
Position of the
impact in the value
chain
Time horizon
(*)
1
E1
Climate change
adaptation
Risk
Damage caused to overhead
power lines by extreme winds.
Own operations &
Customers and end-
users
S, M, L
2
E1
Climate change
mitigation
Risk
Additional restrictions on
renewable energy production
and impacts that could affect
supply security in the Canary
Islands, due to the significant
rise in the share of renewable
energies in the energy mix
forecast for future years.
Own operations &
Customers and end-
users
S, M, L
3
E1
Climate change
mitigation
Risk
Threats to cybersecurity in an
increasingly digitalised system. Cross-cutting
S, M, L
4
E1
Climate change
adaptation
Risk
Fire damage to power lines
and substations
Own operations
S, M, L
5
E1
Climate change
adaptation
Risk
Decline in water availability for
hydroelectric generation.
Own operations &
Customers and end-
users
M, L
6
E1
Climate change
adaptation
Risk
Increased absenteeism
associated with climate change Cross-cutting
L
8
E1
Climate change
adaptation
Risk
Damage to outdoor
transmission grid infrastructure
caused by high temperatures.
Own operations
L
9
E1
Climate change
adaptation
Risk
Lower efficiency of PV
generation due to rising
temperatures.
Own operations &
Customers and end-
users
M, L
10
E1
Climate change
mitigation
Risk
Loss of firm generation
capacity due to the closure of
conventional power plants
(coal, combined cycle,
nuclear).
Own operations &
Customers and end-
users
S, M
11
E1
Climate change
mitigation
Risk
Insufficient information for the
real-time operation of the
system due to an increase in
renewable generation facilities
with outputs below 1 MW
(current observation threshold
set by the System Operator).
Own operations &
Customers and end-
users
M, L
12
E1
Climate change
mitigation
Risk
Power disconnections due to a
prevalence of renewable
energy facilities within the
power mix without the technical
capabilities needed to cope
with disturbances.
Own operations &
Customers and end-
users
S, M
14
G1
Protection of whistle-
blowers
Risk
Imposition of fines or lawsuits
caused by the leakage of
personal information of whistle-
blowers.
Cross-cutting
S
15
G1
Protection of whistle-
blowers
Risk
Leakage of whistle-blowers'
personal information.
Cross-cutting
S
15
S1
Working conditions
Health and
safety
Risk
Increase in operating expenses
due to an increase in economic
contingencies and in the
related insurance premiums,
potentially affecting Redeia's
profitability. Moreover, a
significant volume of claims
could indicate underlying
problems in occupational
safety management, which
could lead to additional costs
related to mitigation and safety,
as well as reputational damage
for Redeia.
Own operations
S
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71
16
S1
Working conditions
Health and
safety
Risk
Vulnerability to significant
financial losses as a result of
inadequate insurance
coverage in the event of
damages such as workplace
accidents.
Own operations
S
17
E4
Direct impact drivers of
biodiversity loss
Climate change Risk
Tightening of bird protection
policies in Spain and
internationally, leading to
increased fines and lawsuits
Own operations
L
18
E4
Direct impact drivers of
biodiversity loss
Climate change Risk
Damage to overhead power
lines from extreme winds
Own operations &
Customers and end-
users
S, M, L
19
E4
Direct impact drivers of
biodiversity loss
Climate change Risk
Fire damage to power lines
and substations (external
events)
Own operations &
Customers and end-
users
S, M, L
20
E4
Direct impact drivers of
biodiversity loss
Other
Risk
Reputational damage as a
result of failing to meet
society's expectations
regarding biodiversity
protection (and sensitivity
around fires).
Own operations
S, M, L
Material opportunities
Standard
ESRS sub-topic
ESRS sub-sub-
topic
Risk/Opportunity
Description of the cause of
the risk/opportunity
Position of the
impact in the
value chain
Time horizon
(*)
1
E1
Climate change
mitigation
Opportunity
Development of storage in
non-mainland systems.
Own operations &
Customers and
end-users
S, M
2
E1
Climate change
mitigation
Opportunity
Scope for reputation gains as
a result of performance
around climate change.
Own operations
S, M
3
E1
Climate change
mitigation
Opportunity
Grid development: integration
of new renewable energy
capacity, interconnections,
high-speed trains and
support for increased
electrification of society
(investment in lines,
substations,
interconnections, protection
systems and other grid
infrastructure control and
monitoring equipment).
Own operations &
Customers and
end-users
S, M, L
4
Entity-
specific
Innovation and
technology applied to
the business
Opportunity
Adaptation to and/or
anticipation of market
demands by implementing
technological advances
Own operations
S
5
G1
Management of
relationships with
suppliers including
payment practices
Opportunity
Improved reputational
positioning thanks to the
development of action plans
together with suppliers for the
implementation of best
practices at Redeia.
Direct and indirect
suppliers & Own
operations
S
6
S1
Working conditions
Social dialogue
Opportunity
Reinforced transparency and
corporate responsibility at
Redeia, fostering solid and
lasting relationships with
stakeholders by
implementing structured and
recurring listening tools. This
could also pave the way for
better integration of their
expectations and needs in
Redeia's operations and
strategies.
Own operations
S
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7
S1
Working conditions
Adequate wages
Opportunity
Satisfaction of employee
expectations thanks to
constant review and updating
of Redeia's total
compensation model to
ensure it remains
competitive.
Own operations
S
8
S1
Working conditions
Work-life balance
Opportunity
Increased employee
satisfaction as a result of
bolstered listening tools and
employee engagement in
developing the work-life
balance.
Own operations
S
9
S1
Working conditions
Freedom of
association, the
existence of works
councils and the
information,
consultation and
participation rights of
workers
Opportunity
Better communication and
collaboration between the
organisation and its
employees thanks to the
existence of active and
effective works councils
leading to more inclusive and
effective decision-making
and more efficient
implementation of labour
policies that respond to
employees' real needs.
Own operations
S
10
S1
Equal treatment and
opportunities for all
Training and skills
development
Opportunity
Increased investment in
development and training, in
addition to a stronger
workforce thanks to talent
retention.
Own operations
S
11
S1
Equal treatment and
opportunities for all
Employment and
inclusion of persons
with disabilities
Opportunity
Increasing workforce diversity
by integrating more people
with disabilities under the
scope of Redeia's Disability
Plan.
Own operations
S
12
S1
Equal treatment and
opportunities for all
Gender equality and
equal pay for work of
equal value
Opportunity
Strengthening Redeia's
position as a leader and
benchmark in gender
equality.
Own operations
M
11.2 ENVIRONMENTAL INFORMATION
11.2.1 INFORMATION RELATED TO THE EUROPEAN UNION TAXONOMY
The aim of the Taxonomy Regulation (Regulation (EU) 2020/852) is to inform investors as to whether an
economic activity is environmentally sustainable by establishing common criteria across the entire European
Union and thereby help channel capital into activities that make a substantial contribution to achieving the
objectives set out in the European Green Deal.
The EU's environmental objectives as set out in the Taxonomy Regulation are as follows:
•
Climate change mitigation;
•
Climate change adaptation;
•
Sustainable use and protection of water and marine resources;
•
Transition to a circular economy;
•
Pollution prevention and control;
•
Protection and restoration of biodiversity and ecosystems.
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73
An economic activity is considered environmentally sustainable, i.e. aligned with the taxonomy, when it
contributes substantially to one of these six objectives, without causing significant harm to any of the other
five, and provided that it is carried out in compliance with minimum social safeguards: the Organisation for
Economic Co-operation and Development guidelines on multinational enterprises, the United Nations guiding
principles on business and human rights and the core conventions of the International Labour Organization.
The Taxonomy Regulation is complemented and implemented by the following Delegated Acts:
•
Commission Delegated Regulation (EU) 2021/2139 establishing the technical screening criteria for
determining the conditions under which certain economic activities qualify as contributing substantially to
climate change mitigation or climate change adaptation and for determining whether those activities cause
no significant harm to any of the other environmental objectives.
•
Commission Delegated Regulation (EU) 2021/2178 specifying the content and presentation of the
information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU.
•
Commission Delegated Regulation (EU) 2022/1214, to include, under strict conditions, specific nuclear
and gas activities in the list of economic activities covered by the taxonomy.
•
Commission Delegated Regulation (EU) 2023/2486 establishing the technical screening criteria for
determining those activities that substantially contribute to the other non-climate environmental objectives
of the European Union: the sustainable use and protection of water and marine resources, transition to a
circular economy, pollution prevention and control, and protection and restoration of biodiversity and
ecosystems. This last act also expands upon the economic activities that contribute to climate change
mitigation and adaptation and introduces amendments to the delegated act on the disclosure of
information on the EU Taxonomy.
•
Additionally, since 2021, the European Commission has published several FAQs that provide technical
clarifications regarding application of the EU Taxonomy. For this section, the FAQs published in February
2022, December 2022, June 2023 and November 2024 have been considered.
11.2.1.1 Analysis of the eligibility and alignment of Redeia's activities
The Taxonomy distinguishes between Taxonomy-eligible and Taxonomy-aligned economic activities as
follows:
•
Eligible economic activity: that described in the delegated acts adopted as per Regulation (EU) 2020/852,
irrespective of whether that economic activity meets any or all of the technical screening criteria set out in
those delegated acts.
•
Taxonomy-aligned economic activity: an economic activity that contributes substantially to one of the six
EU environmental objectives (meets the technical screening criteria established in the Delegated
Regulations 2021/2139 and 2023/2486), does not cause significant harm to any of the other five, and is
carried out in compliance with minimum social safeguards.
In 2024, Redeia analysed the degree of eligibility and alignment of its activities with the EU's six environmental
objectives following these steps:
•
Classification and grouping of the economic activities of Redeia companies.
•
Eligibility analysis of the activities identified by checking the activities included in the various Delegated
Acts already published.
•
Assessment of compliance with the technical screening criteria set out in Commission Delegated
Regulation (EU) 2021/2139 for its contribution to the environmental objectives of climate change
mitigation and adaptation.
•
Assessment of compliance with Commission Delegated Regulation (EU) 2023/2486 regarding its
potential contribution to the other non-climate environmental objectives of the European Union: the
sustainable use and protection of water and marine resources, transition to a circular economy, pollution
prevention and control, and protection and restoration of biodiversity and ecosystems.
•
Do no significant harm (DNSH) analysis. Activities must not cause significant harm to the other EU
environmental objectives defined in Regulation (EU) 2020/852.
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Consolidated Management Report for 2024
•
Verification of compliance with the minimum social safeguards.
The analysis performed yielded the following classification of Taxonomy-eligibility and -alignment of activities
at Redeia.
Redeia companies
Redeia activities
Activity description – Commission
Delegated Regulations 2021/2139 and
2023/2486
Eligible
activities
Aligned
activities
Red Eléctrica de
España, S.A.U.
Activity 1.
Management and
operation of national
electricity infrastructure.
Activity: 4.9 Transmission and distribution
of electricity.
Activity included in Delegated Regulation
2021/2139.
Description: "Construction and operation of
transmission systems that transport the
electricity on the extra high-voltage and
high-voltage interconnected system."
YES 100%
eligible for
CCM and
CCA
objectives.
YES 100%
aligned with
CCM and
CCA
objectives.
Red Eléctrica
Internacional, S.A.U.
(REDINTER), REA,
REDESUR, TESUR,
TESUR 2, TESUR 3,
TESUR 4,
REDELNOR, CCNCM,
RECH, REDENOR,
REDENOR 2.
Activity 2.
Management and
operation of international
electricity infrastructure.
Activity: 4.9 Transmission and distribution
of electricity.
Activity included in Delegated Regulation
2021/2139.
"Construction and operation of
transmission systems that transport the
electricity on the extra high-voltage and
high-voltage interconnected system."
YES 100%
eligible for
CCM and
CCA
objectives.
NO
Red Eléctrica
Infraestructuras de
Telecomunicación,
S.A.U. (REINTEL)
Activity 4.
Telecommunications –
Fibre Optics.
Activity not covered by Delegated
Regulation 2021/2139 or Delegated
Regulation 2023/2486.
NO
NO
Other Redeia
companies
Activity 5.
Other businesses, Corp.
and adjustments
Activity not covered by Delegated
Regulation 2021/2139 or Delegated
Regulation 2023/2486.
NO
NO
— Climate change mitigation: CCM
— Climate change adaptation: CCA
Redeia's core business - Management and operation of national and international electricity infrastructure - is
eligible for the climate change mitigation and adaptation objectives. However, the international electricity
transmission activity does not meet the technical screening criteria for determining the conditions under which
a specific economic activity qualifies as contributing substantially to climate change mitigation or climate
change adaptation set out in Delegated Regulation 2021/2139.
Aligned with the description of Activity 1.1. Conservation, including restoration, of habitats, ecosystems and
species, established in Delegated Regulation (EU) 2023/2486 regarding the contribution to the rest of the
EU's non-climate objectives, all of Redeia's environmental improvement efforts, recovery and conservation
projects carried out in collaboration with the government, non-governmental organisations and other bodies,
as well as specific measures in relation to projects for new electric facilities aimed at improving terrestrial and
marine habitats, ecosystems and flora and fauna species could be considered Taxonomy-eligible activities
(but not Taxonomy-aligned as they do not meet the criteria defined in this Regulation).
However, it is currently not possible to establish a proportion of eligibility for these activities, and the
information currently available is not sufficiently detailed to be able to account for their key performance
indicators.
The activity carried out by Red Eléctrica de España S.A.U. - Management and operation of national electricity
infrastructure - does meet the technical screening criteria set out in Delegated Regulation (EU) 2021/2139 for
determining substantial contribution to climate change mitigation and adaptation objectives; it also meets the
DNSH principle and minimum required social safeguards and is therefore Taxonomy-aligned for both
objectives.
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75
As indicated in Delegated Regulation (EU) 2023/2486 regarding contributions to the rest of the EU's non-
climate objectives, where an economic activity contributes substantially to multiple environmental objectives,
non-financial undertakings must indicate, in bold, in their reporting templates the most relevant environmental
objective for the purpose of computing the KPIs of financial undertakings while avoiding double counting. That
was the premise followed this year, so that the contribution by Red Eléctrica de España S.A.U. - Management
and operation of national electricity infrastructure was assigned 100% to the climate change mitigation
objective.
11.2.1.2 Activity: 4.9 Transmission and distribution of electricity. Substantial contribution of
the Management and operation of national electricity infrastructure business to the climate
change mitigation objective
The electricity transmission activity, at the national level, meets criteria a) and b) defined in point 4.9 of
Annex I of Commission Delegated Regulation 2021/2139, as it belongs to the interconnected European
system, and all of the new electricity capacity connected to the transmission grid since 2017 has been
renewable.
The operation of the national electricity system, in turn, meets criteria d) and e).
Criteria as defined in point 4.9 of Annex I of Commission Delegated Regulation 2021/2139:
1. The transmission and distribution infrastructure or equipment is in an electricity system that complies with at least one of the
following criteria:
(a) the system is the interconnected European system, i.e. the interconnected control areas of Member States, Norway,
Switzerland and the United Kingdom, and its subordinated systems;
(b) more than 67 % of newly enabled generation capacity in the system is below the generation threshold value of 100 g CO2/kWh
measured on a life cycle basis in accordance with electricity generation criteria, over a rolling five-year period;
(c) the average system grid emissions factor, calculated as the total annual emissions from power generation connected to the
system, divided by the total annual net electricity production in that system, is below the threshold value of 100 g CO2e/kWh
measured on a life cycle basis in accordance with electricity generation criteria, over a rolling five-year period;
(d) construction/installation and operation of equipment and infrastructure where the main objective is an increase of the
generation or use of renewable electricity generation;
(e) installation of equipment to increase the controllability and observability of the electricity system and to enable the development
and integration of renewable energy sources.
The operation of the electricity system is playing a leading role in the energy transition by taking on the
challenge of integrating renewable energy, new energy uses and flexible assets into the system.
As system operator, Red Eléctrica works to safely integrate as much renewable energy as possible. The
control and monitoring of this type of energy is carried out by CECRE (Renewable Energy Control Centre).
This enables reduction of CO2 emissions thanks to the fact that demand can be covered by this type of energy
without affecting the security or quality of supply.
Furthermore, to facilitate the incorporation of non-dispatchable energy and avoid wasting the energy
generated when demand is low, Red Eléctrica is working on the development of energy storage instruments
based on both hydropower generation systems and other technologies (RDI). To this end, it carries out
prospective evaluations of the impact of new storage facilities on the integration of renewable energy, identifies
the technical or management characteristics necessary for greater integration, and as a consequence of both
actions, makes legislative and regulatory proposals to the competent authority. These systems will also help
significantly improve the efficiency of the electricity system as a whole and optimise electricity infrastructure.
11.2.1.3 Do No Significant Harm (DNSH) to the climate change mitigation objective
•
Climate change adaptation.
Annually, Red Eléctrica identifies its risks and opportunities derived from climate change.
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Consolidated Management Report for 2024
Climate-related risk management is embedded into the Company's risk management system whose
governance model therefore applies to these risks.
The exercise of identifying physical climate risks is carried out based on the classification of climate-related
hazards itemised in the list in section II of Appendix A of Commission Delegated Regulation 2021/2139.
•
Transition to a circular economy.
Redeia is working together with the actors in its value chain to have the equipment and materials used in all
its activities produced from reused or recycled materials so that, at the end of their useful life, they are also
recycled, reused or recovered, thus closing the circle of sustainability for all the equipment and materials used.
It has set the target of reducing, reusing, recycling or recovering for energy of all the waste it generates by
2030. To this end, an action plan is in place for recovering 100% of the waste generated.
•
Pollution prevention and control.
The principles set out in the Corporate Finance Institute's Environmental, Health, and Safety Guidelines for
Electrical Power Transmission and Distribution are followed in all construction activities for electricity
transmission network facilities.
During the construction phase, the necessary preventive and corrective measures are implemented to
minimise the potential effects of the project. To guarantee the effectiveness of the measures in place,
environmental monitoring programmes are defined and developed. These are applied during the construction
of the facilities and in their early years of operation and facilitate the definition of new measures if necessary.
The environmental monitoring of construction sites entails supervision of the work done by contractors to meet
environmental requirements.
In the carrying out of its maintenance activities, Red Eléctrica has no direct contact with PCBs. The power
equipment owned by Red Eléctrica does not contain PCBs.
Its activities comply with the applicable standards and regulations to limit the effects of electromagnetic
radiation on human health. Thanks to the criteria applied in the design of the facilities, the levels of the electric
and magnetic fields (EMFs) remain below those recommended by the Council of the European Union (Official
Journal of the European Communities 1999/519/EC: limitation of exposure of the general public in areas
where they spend significant time – 5 kV/m for the electric field and 100 µt for the magnetic field).
Measurements give maximum levels (at the closest point from the ground to the conductors) ranging from 3–
5 kV/m for the electric field and 1–15 µT for the magnetic field on 400 kV lines. In addition, the field strength
decreases very rapidly as the distance to the conductors increases: at a distance of 30 metres, the electric
and magnetic field levels range from 0.2–2.0 kV/m and 0.1–3.0 µT, respectively, and are normally less than
0.2 kV/m and 0.3 µT from 100 metres away.
In the case of 220 kV lines, these levels are lower, ranging between 1–3 kV/m for the electric field and 1–6 µT
for the magnetic field at the closest point to the conductors. At a distance of 30 metres, the electric and
magnetic field levels range between 0.1–0.5 kV/m and 0.1–1.5 µT and are generally lower than 0.1 kV/m and
0.2 µT from 100 metres away.
•
Protection and restoration of biodiversity and ecosystems.
All Red Eléctrica projects are assessed from an environmental perspective, and the competent environmental
authorities are informed and their approval is requested, even in the case of projects that are not legally
required to undergo the environmental impact assessment procedure.
Most of Red Eléctrica's projects are subject by law to this environmental impact assessment procedure, which
is carried out in accordance with Directive 2011/92/EU, Spanish legislation (Law 21/2013 of 9 December 2013
on Environmental Assessment) and applicable regional regulations.
Where the environmental impact assessment is carried out, the required mitigation and compensation
measures are implemented to protect the environment and, therefore, biodiversity. These measures
encompass those established by the environmental body and included in the project's environmental
authorisations.
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77
For sites/operations located in or near biodiversity-sensitive areas (including the Natura 2000 Network of
protected areas, UNESCO World Heritage sites and Key Biodiversity Areas (KBAs), as well as other protected
areas), an assessment is conducted when needed and the necessary mitigation measures are then
implemented based on the findings.
Those projects that could directly or indirectly affect Natura 2000 Network sites are subject to the
environmental assessment procedure, even if their thresholds do not reach those defined in the Annexes of
Law 21/2013 on Environmental Assessment.
11.2.1.4 Activity: 4.9 Transmission and distribution of electricity. Substantial contribution of
the Management and operation of national electricity infrastructure business to the climate
change adaptation objective
Taxonomy activity 4.9 - Transmission and distribution of electricity is covered in Annex II of Commission
Delegated Regulation (EU) 2021/2139 as an activity that contributes substantially to the climate change
adaptation objective so long as the technical screening criteria stipulated in that same Regulation are met.
The Management and operation of national power transmission infrastructure carried on by Red Eléctrica de
España S.A.U. is, on aggregate, a key component of the process of adapting the energy system for the risks
derived from climate change and meets the screening criteria defined in point 4.9 of Annex II of Delegated
Regulation 2021/2139.
The effects of climate change could physically affect electricity transmission facilities and influence future
patterns of energy generation and consumption, which would impact the activity of Red Eléctrica as electricity
system operator.
In 2024, Red Eléctrica once again undertook the exercise of identifying its risks and opportunities associated
with climate change, assessing, prioritising and identifying improvements for implementation in 2025.
The exercise of identifying physical climate risks was carried out based on the classification of climate-related
hazards from the list in section II of Appendix A of Commission Delegated Regulation 2021/2139.
The physical risks identified were assessed considering the criteria of exposure, sensitivity and capacity to
adapt. Different physical scenarios were considered in the analysis.
Climate-related risks are assessed in the short, medium and long term (the most significant changes and
impacts are expected by the end of the century), based on the Representative Concentration Pathways (RCP)
scenarios of the Intergovernmental Panel on Climate Change (IPCC). Therefore, the entire lifetime of the
projects is considered in the assessment (the lifetime of transmission projects is at least 30-40 years).
In the case of Spain, the projections made by the national meteorology agency, AEMET, for the most important
scenarios of the fifth IPCC report (AR5) were considered.
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Consolidated Management Report for 2024
The assessment process for 2024 indicated the following key physical risks:
Physical risks
H 2026
H 2030
2050
SSP2-4.5
SSP5-8.5
Damage to outdoor transmission grid infrastructure
N/A
N/A
M-H
M-H
Damage to overhead power lines from extreme winds
M-H
M-H
M-H
M-H
Damage to telecommunications infrastructure due to extreme weather
events
L
M-L
M-L
M-L
Corrosion of metal structures, insulator degradation and more stringent
electrical insulation demands as a result of desertification
M-L
M-L
M-L
M-L
Fire damage to power lines and substations
M-H
M-H
M-H
M-H
Impaired capacity of transmission lines due to rising temperatures
L
L
M-L
M-L
Lower efficiency of PV generation due to rising temperatures
N/A
L
M-L
M-H
Reduction in water availability for hydroelectric generation
N/A
M-L
M-H
H
Reduction in water availability for thermal and nuclear power generation
N/A
M-L
M-L
M-L
Increased absenteeism associated with climate change
L
L
L
M-H
Increase in accidents associated with changes in working conditions shaped
by changes in climate variables where work is carried out
L
L
L
M-L
Increased use of air conditioning at facilities
L
L
L
M-L
H: High / M-H: Medium-High L: Low M-L: Medium-Low N/A: Not applicable
The adaptation measures implemented to minimise the risk of extreme events affecting outdoor facilities
consist of creating wind maps and reviewing construction parameters, reinforcing vulnerable lines, developing
and implementing contingency plans (including the availability of emergency support), and optimising
maintenance work (e.g. MANINT Project – Smart Maintenance).
The adaptation measures implemented to minimise the risk of fire in power lines and substations are based
on the optimisation of firebreak maintenance plans (VEGETA project), fire prevention procedures, early fire
detection measures (PRODINT project), training, awareness-raising and the development of emergency
plans.
In addition, the following measures are planned for the physical risks identified for 2050:
•
In a bid to prevent damage to outdoor equipment in the transmission grid, a detailed study will be
conducted into the trend in temperatures, by region, so as to determine whether changes in the technical
specifications of the equipment are needed.
•
As for the diminished efficiency of photovoltaic generation due to rising temperatures, and the reduction
in the availability of water resources for hydroelectric generation, work is currently ongoing to develop
mechanisms and flexibility measures to cover demand.
Climate-related risk management is embedded into the Company's risk management system whose
governance model therefore applies to these risks.
Red Eléctrica de España's position at the heart of the electricity system as Spain's TSO makes it a key agent
for ensuring the success of the country's energy transition policies, specifically making sure that the changes
in the production-demand scheme unfold without jeopardising the security and continuity of supply.
Spain's Plan for the Development of the Electricity Transmission Network, 2021-2026 aims to make the
electricity transmission grid a key vector of the energy transition, enabling the electrification, renewables
penetration and decarbonisation targets set out in the updated 2023-2030 Integrated National Energy and
Climate Plan (NECP).
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79
In this context, the "Management and operation of national electricity infrastructure" activity contributes
substantially to the climate change adaptation objective by forging a robust and flexible system capable of
guaranteeing continuity of supply in the face of the effects of climate change.
Changes in climate variables may lead to modifications in energy generation patterns (reduced performance
at thermal and PV solar power plants, reduced availability of water for generation and refrigeration, changes
in wind patterns, etc.), in transmission grid capacity and in demand. The Company identifies, assesses and
monitors the potential risks derived from climate change on the electricity system as a whole and contributes
to their minimisation, principally by developing an increasingly interconnected system and layering in tools
that render it more flexible.
Certain specific initiatives in this regard are itemised next:
•
Developing and adapting the transmission grid for unfolding generation, demand and transmission
capacity patterns.
•
Integrating different sources of energy for meeting demand in the event that one specific source is affected
and providing system adjustment services, among other measures.
•
Developing storage systems as a possible alternative for meeting demand.
•
Developing renewable energy generation prediction models.
•
Designing dynamic grid monitoring and operation systems to capture the data needed to calculate the
lines' transmission capacity in real time as a function of weather conditions, rendering it more flexible.
Development and operation of the electricity system is key to adapting the overall electricity system for climate
change and, given the importance of electricity supply, contributes significantly to the Spanish economy's and
society's climate change adaptation process.
11.2.1.5 Do No Significant Harm (DNSH) to the climate change adaptation objective
The disclosures regarding compliance with the DNSH principle are provided in the equivalent assessment
with respect to the climate change mitigation objective. The only additional parameter flagged in Delegated
Regulation (EU) 2021/2139 with respect to the contribution to the climate change adaptation objective is the
following:
"The infrastructure is not dedicated to creating a direct connection, or expanding an existing direct connection
to a power production plant where the direct greenhouse gas emissions exceed 270 g CO 2e/kWh."
This criterion is met by the Management and operation of national electricity infrastructure activity as all of the
new electricity capacity connected to the transmission grid since 2017 has been renewable.
11.2.1.6 Compliance with the minimum social safeguards
Redeia has embraced an explicit and public commitment to promoting and respecting human rights in all its
activities and in all the territories and countries where it operates.
It pays special attention to vulnerable groups, and as such instils this in the corporate culture through its Ten
Principles for respect for human rights, included in its Commitment to the promotion of and respect for human
rights, the Code of Ethics and Conduct and the Sustainability Policy.
With a view to extending this behaviour throughout the supply chain, the human rights commitment is likewise
required of suppliers through the Code of Conduct for Suppliers. In formulating these principles and codes,
the human rights internationally recognised in national and international laws and benchmark standards have
been taken into account:
•
OECD Guidelines for Multinational Enterprises.
•
OECD Guidelines for Responsible Business Conduct.
•
The UN Guiding Principles on Business and Human Rights.
•
International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work.
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•
The eight ILO core conventions.
•
International Bill of Human Rights.
In addition, the Company develops the necessary integrity and human rights due diligence tools, both for its
own operations and in its relations with third parties, in order to mitigate the risk of Redeia being linked to third
parties associated with conduct which is not in line with its ethical values. To this end, since 2013 it has carried
out periodic due diligence analyses that involve all Group companies in order to identity possible risks
stemming from its direct and indirect activity.
11.2.1.7 Key performance indicators: Turnover, CapEx and OpEx associated with Taxonomy-
aligned activities.
European Commission Delegated Regulation 2021/2178 was published in July 2021, implementing Article 8
of the Taxonomy Regulation, concerning the transparency of undertakings in non-financial statements. This
Regulation specifically sets out the environmentally sustainable economic activities and the methodology for
complying with the Taxonomy disclosure obligation.
Annexes I, II, III, IV, V, VII, IX and X of Delegated Regulation 2021/2178 were recently amended in accordance
with Annex V of Commission Delegated Regulation (EU) 2023/2486, published on 21 November 2023,
extending the coverage of the disclosures to include information about economic activities that contribute to
the other environmental objectives of the European Union: sustainable use and the protection of water and
marine resources, the transition to a circular economy, pollution prevention and control or the protection and
restoration of biodiversity.
Under Article 8 of the Taxonomy Regulation, non-financial undertakings are required to disclose the following
information:
a)
The proportion of their turnover derived from products or services associated with economic activities
that qualify as environmentally sustainable under the Taxonomy Regulation.
b)
The proportion of their capital expenditure (CapEx) and the proportion of their operating expenditure
(OpEx) related to assets or processes associated with economic activities that qualify as environmentally
sustainable under the Taxonomy Regulation.
In relation to the calculation of KPIs, Annex I of Commission Delegated Regulation 2021/2178 and Annex V
of Commission Delegated Regulation (EU) 2023/2486 provide templates for the KPIs to be disclosed by non-
financial undertakings, categorically specifying that the following information must be reported for each of the
indicators:
Turnover:
The proportion of turnover, to be calculated as the part of the net turnover derived from products or services,
including intangibles, associated with Taxonomy-aligned economic activities (numerator), divided by net
turnover (denominator).
Capital expenditure (CapEx):
The denominator shall cover additions to tangible and intangible assets during the financial year considered
before depreciation, amortisation and any re-measurements, including those resulting from revaluations and
impairments, for the relevant financial year and excluding fair value changes. The denominator shall also
include additions to tangible and intangible assets resulting from business combinations.
The numerator equals to the part of the capital expenditure included in the denominator that is related to
assets or processes associated with economic activities that make a substantial contribution to any of the EU
environmental objectives.
Consolidated Management Report for 2024
81
Operating expenditure (OpEx):
The denominator shall cover direct non-capitalised costs that relate to research and development, building
renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to
the day-to-day servicing of assets of property, plant and equipment by the undertaking or third party to whom
activities are outsourced that are necessary to ensure the continued and effective functioning of such assets.
The numerator shall include the part of OpEx included in the denominator related to assets or processes
associated with economic activities that make a substantial contribution to any of the environmental objectives
of the European Union, including training and other human resources adaptation needs, and direct non-
capitalised costs that represent research and development.
The procedures followed to determine the numerator and denominator of each Redeia key performance
indicator are compliant with the considerations set out in Annex I of Commission Delegated Regulation
2021/2178, and in Annex V of Commission Delegated Regulation (EU) 2023/2486.
Likewise, the accounting rules prescribed for calculating Turnover, CapEx and OpEx are the same as the
accounting regulations applicable to Redeia. Therefore, it has not been necessary to make any adaptations
or interpretations in this respect.
Based on the foregoing, Redeia's information for 2024 and 2023, in accordance with the Taxonomy
Regulation, is as follows:
Taxonomy-eligible and Taxonomy-aligned activities. Management and operation of national electricity
infrastructure.
Key performance indicators:
2024
2023
Turnover
87.4%
89.1%
CapEx
96.3%
95.8%
OpEx
88.0%
89.8%
Taxonomy-eligible but not Taxonomy-aligned activities. Management and operation of international
electricity infrastructure (Peru and Chile) Key performance indicators:
2024
2023
Turnover
5.2%
4.1%
CapEx
0.6%
0.7%
OpEx
6.1%
4.9%
(*) On 31 January 2025, Redeia, through its subsidiary, Redeia Sistemas de Telecomunicaciones S.A.U.,
agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat, S.A. The transaction,
which is subject to approval by Spain's Council of Ministers, the anti-trust authorities and other regulators, is
expected to close in 2025. As a result, at 31 December 2024, the assets and liabilities belonging to the satellite
telecommunications segment carried out by the Hispasat subgroup, whose parent company is Hispasat S.A.
and which is controlled by Redeia through its 89.68% shareholding, have been classified as non-current
assets held for sale.
For Taxonomy disclosure purposes, the amounts corresponding to Hispasat have been excluded from the
Turnover, CapEx and OpEx denominators for both 2024 and 2023.
The percentages assigned to the contribution made to each EU environmental objective are provided in
Appendix I, "Templates with information on key performance indicators".
82
Consolidated Management Report for 2024
These templates are aligned with Annex V of Commission Delegated Regulation (EU) 2023/2486 of 27 June
2023 amending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for
those economic activities and Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023
supplementing Regulation (EU) 2020/852 and amending Commission Delegated Regulation (EU) 2021/2178
as regards specific public disclosures for those economic activities
Determination of numerator and denominator of KPIs
Point 1.2.1. of the Taxonomy Regulation states that non-financial undertakings shall explain:
a)
how turnover, capital expenditure and operating expenditure were determined and allocated to the
numerator;
b)
the basis on which the turnover, capital expenditure and operating expenditure were calculated,
including any assessment in the allocation of revenues or expenditures to different economic
activities.
The following steps were taken to calculate the ratio of Taxonomy-aligned Turnover, CapEx and OpEx in
respect of the Group total:
1.
The Taxonomy-aligned activities were identified. As detailed above, these activities are as follows:
Management and operation of national electricity infrastructure.
2.
The companies that carry out these activities within the consolidated Group were then identified.
Management and operation of national electricity infrastructure: Red Eléctrica.
3.
Within Red Eléctrica we analysed which activities or businesses meet the criteria to qualify as Taxonomy-
aligned activities.
The activities carried out by Red Eléctrica are classified as follows:
a) Electricity transmission (Taxonomy-aligned activity).
b) System operation, mainland and non-mainland (Taxonomy-aligned activity).
c) Other activities. Supplementary activities carried out by Red Eléctrica related to its main electricity
transmission and system operation activities (Taxonomy-aligned activities).
In view of the foregoing, all activities carried out by Red Eléctrica are considered Taxonomy-eligible and
Taxonomy-aligned activities.
In relation to Turnover, since the description provided by the Regulation meets the accounting criteria for
recognising "Revenue" in the financial statements, this figure was considered directly, net of consolidation
adjustments.
As regards CapEx, the description included in the Regulation matches that relating to the accounting of
additions to fixed assets such that this amount, as set out in Red Eléctrica's financial statements, could
also be considered directly.
In relation to OpEx, since the Regulation determines that only activities related to research and
development, building renovation measures, short-term leases, maintenance and repairs, and any other
direct expenditures related to the day-to-day maintenance of assets of property, plant and equipment must
be considered, we differentiated, within total operating expenditure, those that meet the aforementioned
definition.
With regard to the OpEx of the activities of Management and operation of national electricity infrastructure
(an activity carried out by Red Eléctrica) and the Management and operation of international electricity
infrastructure (the electricity transmission activity carried out in Peru and Chile), it should be noted that all
the activities carried out by the Redeia companies that engage in this activity correspond to actions related
to the due performance of their businesses. For this reason, in determining OpEx, all the expenses
incurred by the companies were taken into account (costs of sales, other operating expenses and
personnel expenses, from which self-constructed assets were deducted as they are considered in the
CapEx figure).
Consolidated Management Report for 2024
83
As regards the OpEx denominator, in the case of Red Eléctrica de España, and for the electricity
transmission activities carried out in Peru and Chile, the same figure was considered as in the case of the
numerator, and for the other Redeia companies, their asset maintenance costs were considered. Based
on the above, the activities carried out by Reintel were also considered.
As laid down in the Regulation, and in relation to the calculation of the numerator of the ratios, steps were
taken to ensure that Taxonomy-aligned activities were considered only once, as they are specific activities
carried out by Red Eléctrica, and not by other Redeia companies, nor were these activities duplicated.
In the case of the denominator, the Turnover, CapEx and OpEx figures used for Taxonomy purposes are
those recognised in the Group's consolidated financial statements in the case of Turnover and CapEx. In
the case of OpEx, steps were taken to ensure the figure does double count expenses of Redeia
companies.
4.
After identifying the Taxonomy-aligned activities, the Turnover, CapEx and OpEx ratios were calculated
by including in the numerator the Taxonomy-defined Turnover, CapEx and OpEx figures of Red Eléctrica,
and in the denominator, the total Taxonomy-defined Turnover, CapEx and OpEx of Redeia, taking into
account the above comments.
In relation to Taxonomy-eligible but Taxonomy non-aligned activities, specifically the Management and
operation of international electricity infrastructure, the procedure was similar to that described in the case of
Red Eléctrica. In this case, these activities are carried out by Red Eléctrica Internacional (Redinter), through
its investees in Peru and Chile.
The activities carried out by these companies were considered fully Taxonomy-eligible but not Taxonomy-
aligned.
Regarding Turnover and CapEx (additions to fixed assets), a procedure similar to that described in relation to
Red Eléctrica's Taxonomy-aligned activities was followed.
As far as OpEx is concerned, expenses directly related to asset maintenance activities were again
differentiated for the purposes of calculating the numerator. In relation to the denominator, the OpEx
considered for the Group was the same as that considered in the case of the Taxonomy-aligned OpEx.
Contextual Information
The Taxonomy Regulation states, in point 1.2.3 of Annex I, that non-financial undertakings shall explain the
figures of each KPI and the reasons for any changes in those figures in the reporting period.
Since the numerator of the KPIs corresponds to the activities of Red Eléctrica, they indicate the weight of the
activities carried out by this company within Redeia as a whole.
As is reflected in the ratios provided, these activities represent a very significant percentage of all Group's
activities. Therefore, it can be concluded that most of the activities carried out by Redeia are aligned with the
Taxonomy Regulation.
With respect to the comparability of the information for 2024 and 2023, although all the indicators are broadly
similar, as shown, the following should be noted:
–
For Turnover, the percentage contribution of eligible and aligned activities decreased from 89.1% in
2023 to 87.4% in 2024, as the Turnover contributed by Red Eléctrica to the Group decreased, while
that contributed by the subsidiaries in Peru and Chile, increased. As a result, the percentage
contribution to Turnover of eligible but not aligned activities increased from 4.1% in 2023 to 5.2% in
2024.
–
The CapEx percentage contributions were stable in both years.
–
As for OpEx, the percentage contributions of eligible and aligned activities was similar in both years
but within the amount of OpEx contributed by eligible but not aligned activities, the OpEx amounts of
the subsidiaries in Peru and Chile increased between 2023 and 2024, while the amount at Red
Eléctrica decreased.
84
Consolidated Management Report for 2024
11.2.1.8 Templates for the Turnover, CapEx and OpEx KPIs for Taxonomy-eligible,
environmentally sustainable, Taxonomy-eligible but not Taxonomy-aligned and Taxonomy
non-eligible activities of Redeia.
Consolidated Management Report for 2024
85
Substantial contribution
criteria
DNSH
criteria (does not significantly harm)
Economic activities
Code
Turnover in
2024 (€ 000)
Proportion
of 2024
Turnover
(%)
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion
of
Taxonomy
aligned (A1)
or eligible
turnover
(A.2) – 2023
(E) (T)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y/N
Y/N
Y/N Y/N
Y/N Y/N Y/N
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Management and operation of
national electricity infrastructure
4.9 CCM
& CCA
(a)
1,392,570
87.4%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
89.1%
E
Turnover of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
4.9 CCM
& CCA
(a)
1,392,570
87.4%
87.4%
(d)
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
89.1%
Of which Enabling
1,392,570
87.4%
87.4%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
89.1%
E
Of which Transitional
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (note Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Management and operation of
international electricity infrastructure
4.9 CCM
& CCA
(a)
83,284
5.2%
EL
EL
N/EL
N/EL
N/EL
N/EL
4.1%
Turnover of Taxonomy-eligible,
but not environmentally
sustainable activities (not
Taxonomy-aligned activities)
(A.2)
83,284
5.2%
5.2% (d)
0%
0%
0%
0%
0%
4.1%
Total (A.1 + A.2)
1,475,854
92.6%
92.6%
(c)
0%
0%
0%
0%
0%
93.2%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Telecommunications – Fibre Optics
-
90,714
5.7%
Other businesses, Corp. and
dj
-
27,637
1.7%
Turnover of Taxonomy non-
eligible activities (B)
118,351
7.4%
TOTAL (A+B)
1,594,204
100%
Consolidated Management Report for 2024
86
Templates taken from Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 amending Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for these
economic activities.
a)
The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section number of the activity
in the relevant Annex covering the objective, i.e.:
–
Climate change mitigation: CCM
–
Climate change adaptation: CCA
–
Water and marine resources: WTR
–
Circular economy: CE
–
Pollution prevention and control: PPC
–
Biodiversity and ecosystems: BIO
b)
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
c)
To avoid double counting, in the cells for "substantial contribution criteria" to climate change mitigation and adaptation objectives for "Total (A1 + A2)", eligibility is presented for the climate
change mitigation objective only.
d)
This percentage is calculated based on the contribution of the corresponding column to the total (A+B) in the last row of the table.
(E): Category enabling activity.
(T): Category transitional activity.
Proportion of turnover/total turnover
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
87.4%
92.6%
CCA
0%
92.6%
WTR
0%
0%
CE
0%
0%
PPC
0%
0%
BIO
0%
0% (e)
e)
Within the Management and operation of national and international electricity infrastructure, projects are undertaken for the improvement and recovery of habitats, ecosystems and
species, which constitute eligible activities in accordance with Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Commission Delegated Regulation
(EU) 2020/852. However, information is not currently available in sufficient detail to be able to account for their key performance indicators.
Note. In the wake of the agreement to sell Redeia's equity interest in Hispasat, S.A., the amounts corresponding to Hispasat have been excluded from the Turnover, CapEx and OpEx denominators for both 2024 and
2023. Had Hispasat not been reclassified to non-current assets held for sale, the Hispasat business would have accounted for 9.2% of total turnover including the Hispasat subgroup (11.9% in 2023), its CapEx would
have accounted for 2.7% of total CapEx including the Hispasat subgroup (13.0% in 2023) and its OpEx would have represented 1.4% of total OpEx including the Hispasat subgroup (1.1% in 2023).
Consolidated Management Report for 2024
87
Substantial contribution
criteria
DNSH criteria
(does not significantly harm)
Economic activities
Code
CapEx
2024
(€ 000)
Proportion
of CapEx
2024 (%)
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion
of
Taxonomy
aligned (A1)
or eligible
CapEx (A.2)
– 2023
(E) (T)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y;N;
N/EL (b)
Y/N
Y/N
Y/N Y/N
Y/N Y/N Y/N
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned activities)
Management and operation of
national electricity infrastructure
4.9 CCM
& CCA
(a)
1,012,795
96.3%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
95.8%
E
CapEx of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
4.9 CCM
& CCA
(a)
1,012,795
96.3%
96.3%(d)
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
95.8%
Of which enabling
1,012,795
96.3%
96.3%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
95.8%
E
Of which transitional
0
0%
0
Y
Y
Y
Y
Y
Y
Y
0%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (Taxonomy non-aligned activities)
EL; N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Management and operation of
international electricity infrastructure
4.9 CCM
& CCA
(a)
6,058
0.6%
EL
EL
N/EL
N/EL
N/EL
N/EL
0.7%
CapEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy -aligned
activities) (A.2)
6,058
0.6%
0.6%
100%
0%
0%
0%
0%
0.7%
Total (A.1 + A.2)
1,018,853
96.9%
96.9% (c)
0%
0%
0%
0%
0%
96.5%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Telecommunications – Fibre Optics
11,328
1.1%
Other businesses, Corp. and
dj
21,417
2.0%
CapEx of Taxonomy non-eligible
activities (B)
32,745
3.1%
TOTAL (A+B)
1,051,598
100.0%
Consolidated Management Report for 2024
88
Templates taken from Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 amending Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for these
economic activities.
a)
The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section number of the activity
in the relevant Annex covering the objective, i.e.:
–
Climate change mitigation: CCM
–
Climate change adaptation: CCA
–
Water and marine resources: WTR
–
Circular economy: CE
–
Pollution prevention and control: PPC
–
Biodiversity and ecosystems: BIO
b)
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
c)
To avoid double counting, in the cells for "substantial contribution criteria" to climate change mitigation and adaptation objectives for "Total (A1 + A2)", eligibility is presented for the climate
change mitigation objective only.
d)
This percentage is calculated based on the contribution of the corresponding column to the total (A+B) in the last row of the table.
(E): Category enabling activity.
(T): Category transitional activity.
Proportion of CapEx/Total CapEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
96.3%
96.9%
CCA
96.3%
96.9%
WTR
0%
0%
CE
0%
0%
PPC
0%
0%
BIO
0%
0% (c)
e)
Within the Management and operation of national and international electricity infrastructure, projects are undertaken for the improvement and recovery of habitats, ecosystems and
species, which constitute eligible activities in accordance with Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Commission Delegated Regulation
(EU) 2020/852. However, information is not currently available in sufficient detail to be able to account for their key performance indicators.
Note. In the wake of the agreement to sell Redeia's equity interest in Hispasat, S.A., the amounts corresponding to Hispasat have been excluded from the Turnover, CapEx and OpEx denominators for both 2024 and
2023. Had Hispasat not been reclassified to non-current assets held for sale, the Hispasat business would have accounted for 9.2% of total turnover including the Hispasat subgroup (11.9% in 2023), its CapEx would
have accounted for 2.7% of total CapEx including the Hispasat subgroup (13.0% in 2023) and its OpEx would have represented 1.4% of total OpEx including the Hispasat subgroup (1.1% in 2023).
Consolidated Management Report for 2024
89
Substantial contribution
criteria
DNSH criteria
(does not significantly harm)
Economic activities
Code
OpEx 2024
(€ 000)
Proportion
of OpEx
2024 (%)
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion of
Taxonomy
aligned (A1) or
eligible OpEx
(A.2) – 2023
(E) (T)
Y;N; N/EL
(b)
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y;N;
N/EL
Y/N Y/N
Y/N Y/N
Y/N Y/N Y/N
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned activities)
Management and operation of
national electricity infrastructure
4.9 CCM
& CCA
(a)
384,081
88.0%
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
89.8%
E
OpEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
4.9 CCM
& CCA
(a)
384,081
88.0%
88.0% (d)
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
89.8%
Of which enabling
384,081
88.0%
88.0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
89.8%
E
T
Of which transitional
0
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy aligned activities)
EL; N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Management and operation of
international electricity
infrastructure
4.9 CCM
& CCA
(a)
26,733
6.1%
EL
EL
N/EL
N/EL
N/EL
N/EL
4.9%
OpEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy -aligned
activities) (A.2)
26,733
6.1%
6.1%
0%
0%
0%
0%
0%
4.9%
Total (A.1 + A.2)
410,814
94.1%
94.1% (c)
0%
0%
0%
0%
0%
94.7%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Telecommunications – Fibre Optics
25,548
5.9%
Other businesses, Corp. and
dj
0
0%
OpEx of Taxonomy non-eligible
activities (B)
25,548
5.9%
TOTAL (A+B)
436,362
100.0%
Consolidated Management Report for 2024
90
Templates taken from Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 amending Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for these
economic activities.
a)
The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section number of the activity
in the relevant Annex covering the objective, i.e.:
–
Climate change mitigation: CCM
–
Climate change adaptation: CCA
–
Water and marine resources: WTR
–
Circular economy: CE
–
Pollution prevention and control: PPC
–
Biodiversity and ecosystems: BIO
b)
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective
EL – Taxonomy-eligible activity for the relevant objective
c)
To avoid double counting, in the cells for "substantial contribution criteria" to climate change mitigation and adaptation objectives for "Total (A1 + A2)", eligibility is presented for the climate
change mitigation objective only.
d)
This percentage is calculated based on the contribution of the corresponding column to the total (A+B) in the last row of the table.
(E): Category enabling activity.
(T): Category transitional activity.
e)
Within the Management and operation of national and international electricity infrastructure, projects are undertaken for the improvement and recovery of habitats, ecosystems and
species, which constitute eligible activities in accordance with Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Commission Delegated Regulation
(EU) 2020/852. However, information is not currently available in sufficient detail to be able to account for their key performance indicators.
Note. In the wake of the agreement to sell Redeia's equity interest in Hispasat, S.A., the amounts corresponding to Hispasat have been excluded from the Turnover, CapEx and OpEx denominators for both 2024 and
2023. Had Hispasat not been reclassified to non-current assets held for sale, the Hispasat business would have accounted for 9.2% of total turnover including the Hispasat subgroup (11.9% in 2023), its CapEx would
have accounted for 2.7% of total CapEx including the Hispasat subgroup (13.0% in 2023) and its OpEx would have represented 1.4% of total OpEx including the Hispasat subgroup (1.1% in 2023).
Proportion of OpEx / Total OpEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
88.0%
94.1%
CCA
88.0%
94.1%
WTR
0%
0%
CE
0%
0%
PPC
0%
0%
BIO
0%
0% (e)
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91
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration
and deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades,
using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district heating
or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
No
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and
operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and
operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
No
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11.2.2 ESRS E1 – CLIMATE CHANGE
Redeia is required to report climate change related information under the Taxonomy Regulation (EU)
2020/852. This information is presented in section 2.1 Information related to the European Union Taxonomy
of this report.
11.2.2.1 Governance
a. Integration of sustainability-related performance in incentive schemes. ESRS 2 GOV-3
The remuneration system for Redeia's CEO and senior management includes fixed and variable components,
the latter being both short and long term, aligned with the Group's targets and strategies. The annual variable
remuneration of the CEO is based on a combination of predetermined and quantifiable corporate targets
measured at the Group level, which account for 75% of his total annual variable remuneration, and the
achievement of managerial targets linked to Redeia's businesses, which account for 25% of his total annual
variable remuneration. These managerial targets include a target linked to sustainability, which has been
assigned a weighting of 15% and is pegged to the degree of progress made towards the 2023-2025
Sustainability Plan, to the success in reducing emissions in accordance with the targets set for 2030, and to
the Company continuing to feature on the most relevant sustainability indices. Moreover, 35% of the incentive
is linked to energy transition activities in Spain. The multi-year variable remuneration is linked to the targets
set out in the 2021-2025 Strategic Plan, with 75% of the targets relating to Sustainability (ESG).
11.2.2.2 Strategy
a. Transition plan for climate change mitigation. E1-1
Redeia, mainly through its activities in the electricity business, is a key and proactive agent in the energy
transition towards a zero emissions model, the main elements of which should be: the electrification of the
economy, the full integration of renewable energy into the energy mix, and efficiency, while always ensuring
the security of supply. Furthermore, the Group's activities in developing telecommunications to make further
progress towards digitalisation and connectivity can also make a significant contribution to the ongoing
process of decarbonising society. Redeia's activities are therefore key to achieving the climate and energy
objectives in Spain and Europe, both in the medium (2030) and long term (climate neutrality by 2050). This
position is reflected in the Group's Strategic Plan 2021-2025, the mainstay of which is to make the energy
transition happen in Spain by championing the green and digital transition.
In 2011, Redeia embraced a public and voluntary commitment to combat climate change, which was approved
by the Board of Directors (the latest version of this commitment was approved in May 2023). This commitment
is embodied in the ultimate goal of achieving net zero emissions by 2050, with emission reduction targets
aligned with the global ambition of limiting the average temperature increase to 1.5 °C, in line with the Paris
Agreement and as set out in the Group's various action plans. Redeia's emission reduction targets have been
approved by the Science Based Targets initiative (SBTi).
Redeia has a transition plan that envisions both climate change mitigation and climate change adaptation
actions (Net Zero Transition Plan). The plan is closely integrated and harmonised with the Company's overall
strategy and financial planning and is publicly available on its website. The plan contains a set of specific
commitments and targets to reduce greenhouse gas (GHG) emissions and become carbon neutral by 2050.
The specific actions aimed at achieving the medium-term objectives are set out and detailed in the Climate
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93
Change Action Plan (the 2021-2030 Plan is currently in force), which is updated periodically to reflect strategic
or technical changes and is approved by senior management (Executive Committee) and reviewed at least
annually to ensure compliance.
The Climate Change Action Plan (CCAP) is divided into four main blocks: (A) Contribution to a sustainable
energy model, (B) Carbon footprint reduction, (C) Adaptation to climate change, and (D) Positioning and
dissemination.
Of these four blocks, two refer to climate change mitigation and further break down as follows:
A. Contribution to a sustainable energy model: actions relating to Red Eléctrica's activity as operator and
transporter of electricity and needed to achieve the targets of integration of renewable energies (74% in
the electric energy mix by 2030; updated to 81% in 2024) and reduction of emissions under the NECP.
•
Development of infrastructure to enable the electrification of the economy, connection of new
renewable power, reduction of technical restrictions, and power supply to the railway network.
Highlights include the international and inter-island electrical interconnections to ensure an
uninterrupted supply of power, given the intermittent nature of renewable generation.
•
Maximum integration of renewable energies into the electricity system by optimising system operation
and the performance of the Renewable Energy Control Centre (CECRE), to be achieved by improving
forecasting tools, integrating more distributed generation and developing energy storage systems
that will allow for the integration of renewable energies, thus ensuring the security of the system.
•
Furthering efficient grid management by fostering technological innovation (smart grids and
digitalisation), incorporating new elements and services, and applying new flexibility measures.
B. Carbon footprint reduction: actions to achieve the Company's emissions reduction targets. (The
specific targets set for the medium and short term are described in the section Targets related to climate
change mitigation and adaptation: E1-4 / MDR-)
•
Reduction of SF6 and other fluorinated emissions (Scope 1): Redeia's main source of direct emissions
is SF6, associated with small equipment leaks and accidents or breakdowns. While numerous steps
have been taken to reduce these emissions, a substantial reduction is not expected over the 2030-
2050 horizon, due to the age of the equipment and the amount of gas installed. However, this does
not jeopardise compliance with the Company's emission reduction targets, as they have been set
taking these assumptions into account. No locked-in GHG emissions from the Group's assets and
activities have been considered.
•
Leak prevention, detection and control.
•
Renewal of equipment.
•
Limiting growth in installed gas. Promoting and developing alternatives to the use of gas (Horizon
2030) until it is complete discontinuation in the long term.
•
Reducing the use of fluorinated gases for air conditioning.
•
Reducing energy consumption and related emissions (Scopes 1 and 2):
•
Increased use of renewable energy.
•
Implementing energy efficiency measures.
•
Reducing the use of fossil fuels: fostering sustainable mobility and alternatives to the use of
generators.
•
Reducing emissions from transmission grid losses by actively working to increase the share of
renewable energy in the electricity mix (Scope 2).
•
Reducing emissions along the supply chain (Scope 3):
•
Collaboration programmes with suppliers to encourage them to set reduction targets aligned with
the SBTi and to make further progress in curbing their emissions.
•
Sustainability criteria in facility design and procurement decisions.
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Consolidated Management Report for 2024
•
Emissions offsets:
•
Redeia Forest Project.
•
Purchasing of carbon credits in the voluntary market.
•
Development of other nature-based projects (Horizon 2050).
The quantitative emission reduction contributions of these levers are described below in section 2.2.4 Metrics
and targets of this report.
Redeia has made several significant advances in implementing its transition plan:
A. Contribution to a sustainable energy model
Development of infrastructure
The Electricity Plan (2021-2026), which envisions an investment of 6,964 million euros, is the strategic
instrument for developing the infrastructure needed to achieve the energy transition objectives in Spain.
Notably, the Company has been making significant progress in implementing the infrastructure contemplated
therein. In 2024, a combined investment in the transmission network of 976.3 million euros was made.
Integration of renewables
In recent years, Red Eléctrica has successfully faced the challenge of integrating a formidable contingent of
new renewable power. Its installed renewable power capacity in 2024 grew by a further 5.9 GW, to reach 83.7
GW of renewable generation sources in the Spanish electricity system, accounting for 64% of its total installed
capacity.
To allow for the safe operation of an electricity system with such a high penetration of renewable energies,
Red Eléctrica's Renewable Energy Control Centre (CECRE) plays an essential role in controlling and
monitoring the system.
In 2024, new all-time peaks were recorded for instantaneous power, hourly energy, daily energy and coverage
of instantaneous demand with photovoltaic production for the three systems operating in Spain (mainland,
Balearic Islands and Canary Islands), along with several other all-time highs such as daily energy with wind
power production on the mainland, or coverage of demand with renewables in the Balearic Islands.
In 2024, 56.8% of the energy generated in the national electricity system came from renewable sources.
Efficient grid management
Red Eléctrica, as system operator, works actively to promote, develop and disseminate actions to improve
and evolve the way the system currently works, by making it smarter:
•
Development of tools for system operation, based on digitalisation and the use of emerging technologies
(27 R&D projects under way in 2024).
•
Development of demand forecasting initiatives, electricity planning, system controllability and the
availability and management of better quality information to support system operations.
•
Development of balancing services and active demand response:
•
17 service providers balance active demand response, with a total capacity of 609 MW.
•
762 installations and 38,787.2 MW enabled under the automatic power reduction service.
B. Carbon footprint reduction
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95
•
Scope 1 and 2 emissions in 2024 were down 34% compared to 2019, to reach 62% of the target for 2030
(55% reduction compared to 2019). Moreover, all the Scope 1 emissions that cannot be reduced are offset.
•
In relation to Scope 3 emissions, no progress has been made so far toward the emission reduction target,
as the positive results of the actions being undertaken are not expected to materialise in the short term
(from 2030 onwards).
The actions being taken to reduce the carbon footprint, as well as the concrete reductions achieved in each
case, are described in section 2.2.3 Impact, risk and opportunity management; (c) Actions and resources in
relation to climate change policies.
The activities of Red Eléctrica, which carries out Redeia's core business, comply with the technical screening
criteria of substantial contribution to the climate change mitigation and adaptation objectives, and are 100%
aligned with the EU Taxonomy. They account for 87.5% of Redeia's turnover. Given this circumstance, it is not
considered necessary to bring the Company's economic activities in line with the criteria set out in Delegated
Regulation (EU) 2021/2139, nor have any objectives or plans been established along these lines.
Moreover, the Company does not need to draw up a transition plan under the framework of this regulation.
However, as mentioned earlier, Redeia does have a transition plan (commitment, objectives and action plans)
with the aim of making further progress in the fight against climate change and reducing the emissions
produced by its activities. While no specific information is available on the subject of investment and funding
supporting the implementation of the plan, the information disclosed in section 2.1 EU Taxonomy information
of this report provides a broader picture of the situation by breaking down the CapEx and OpEx percentages
linked to the Taxonomy objectives and showing the relevant investment figures.
No significant amounts of CapEx relating to coal, oil and gas economic activities related to NACE code D.35.1
– Electric power generation, transmission and distribution were set aside in 2024.
Redeia does not qualify for exclusion from the EU Paris-aligned benchmarks (PABs). These benchmarks
include companies that meet strict sustainability and carbon reduction criteria and exclude those that do not.
According to Article 12 of Delegated Regulation (EU) 2020/1818, companies deriving 50% or more of their
revenues from electricity generation with a GHG intensity above 100 g CO₂/kWh should be excluded from
these benchmarks. Since Redeia is exclusively engaged in the transmission of electricity and does not obtain
revenues from electricity generation, it does not qualify for this exclusion.
b. Material impacts, risks and opportunities and their interaction with strategy and business model.
ESRS 2 / SBM-3
Material climate-related events, risks and opportunities have, or could have, an impact on Redeia's business
model.
Redeia has conducted an analysis to gauge the resilience of its business model in relation to climate change,
considering various time horizons and climate scenarios.
The findings of the resilience analysis have been incorporated into the Company's strategy (policy
definition/review, planning —including financial planning— and decision-making). This is reflected in its
Strategic Plan and other commitments, such as the Climate Change Commitment and the Climate Change
Action Plan.
According to the resilience analysis, which includes an assessment of incidents (impacts) and an assessment
of risks and opportunities (which considers the Company's capacity to adapt to them), no negative incidents
or risks were identified that could have a significant impact on the Company's business or financial statements
(none of them would represent an impact of more than 1.5% of Redeia's annual earnings) under any of the
scenarios analysed (including a scenario of global warming of less than 2 °C – NZE). This demonstrates that
as an organisation Redeia is resilient to climate change. By monitoring impact indicators, continuing to run
its climate risk control and management system, and incorporating the findings into its strategy (policies and
action plans), Redeia is able to react in the event of any negative incidents, while also anticipating potential
impacts and maintaining the Company's ability to adapt swiftly.
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Consolidated Management Report for 2024
Impacts
Impact
Location in
the value
chain
Positive /
Negative
Current /
Potential
Time
horizon
(*)
Current/anticipate
d effects on the
business model,
value chain,
strategy and
decision-making
How the
impacts
affect people
and the
environment
How the
impact
interacts with
the strategy
and business
model
Link between
impacts and
business activities
and relationships
Assessment of the
resilience of the
strategy and
business model
regarding its
capacity to address
material impacts
Adapting
the
electricity
system
infrastructur
e for climate
change.
Group-wide
P
Actual
S,M,L
Redeia's own
operations
(construction of new
infrastructure and
meshing of the
transmission grid)
make a significant
contribution to
making the
electricity system
(and society as a
whole, by
extension) more
resilient vis-a-vis
adverse climate
phenomena and
changes in
electricity
generation/demand
derived from climate
change. In addition,
Redeia identifies
and assesses the
risks associated
with climate change
considering short,
medium and long-
term horizons,
defining the
adaptation
measures needed
for each horizon.
Adaptation of the
infrastructure of Red
Eléctrica
(specifically) not
only favours the
adaptation of its
own operations, but
it also helps make
the overall electricity
system more
resilient.
Security of
electricity
supply
Electricity
system more
resilient to
adverse
weather events
or changes in
generation/de
mand owing to
climate change
This impact is
linked to the
activities to develop
the transmission
network
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
Consolidated Management Report for 2024
97
Adapting
electricity
system
operations
for climate
change.
Cross-cutting
P
Actual
S,M,L
Redeia has
developed system
operation tools,
adapting them for
the most stringent
monitoring and
control
requirements, and
has designed a
number of
renewable
generation
prediction models
and mechanisms for
catering to demand
more flexibly that
contribute to the
resilience of the
electricity system
(and thereby of
society as a whole)
vis-a-vis adverse
climate phenomena
and/or changes in
climate parameters
that could affect
electricity
generation,
transmission or
demand.
Security of
electricity
supply
Development
of system
operation tools,
adapting them
to the most
stringent
requirements
This impact is
linked to Redeia's
activities in
operating the
electricity system
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
Emissions
savings in
the
electricity
system.
Cross-cutting
P
Actual
S,M,L
Facilitation of the
integration of
renewable energy
implies a reduction
in emissions across
the electricity
system as a whole.
Emission
reductions
Development
of system
operation tools,
adapting them
to the most
stringent
requirements
This impact is
linked to Redeia's
activities in
operating the
electricity system
and developing the
transmission grid
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
Direct GHG
emissions
(Scope 1).
Own
operations
N
Current
S,M,L
In the case of
REDEIA, the main
source of GHG
emissions are SF6
gas leaks at its own
facilities. The rest of
its Scope 1
emissions stem
from its fleet of
vehicles, the use of
air conditioning and
heating at its
facilities and back-
up generators.
Generation
of
greenhouse
gas
emissions
Developing
emission
reduction
levers
This impact is
linked to all of
Redeia's business
activities
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
Indirect
GHG
emissions
(Scope 2).
Direct and
indirect
suppliers and
own activity
N
Current
S,M,L
Scope 2 emissions
are the indirect
greenhouse gas
emissions
associated mainly
with energy losses
from the
transmission grid
and the electricity
consumed by the
organisation.
Generation
of
greenhouse
gas
emissions
Developing
emission
reduction
levers
This impact is
linked to all of
Redeia's business
activities
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
GHG
emissions
along the
supply chain
(Scope 3).
Direct and
indirect
suppliers
N
Current
S,M,L
Scope 3 emissions
are those generated
by Redeia's value
chain
Generation
of
greenhouse
gas
emissions
Developing
emission
reduction
levers
This impact is
linked to all of
Redeia's business
activities
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
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Consolidated Management Report for 2024
Integration
of
renewable
energy into
own
operations
in the
electricity
system.
Own
operations
P
Current
S,M,L
Redeia participates
actively in the
energy transition
towards an
emissions-free
model by
committing
strategically to the
electrification of the
economy and
efficient integration
of renewable energy
Emission
reductions
related to the
integration of
renewable
energies
Integration of
renewable
energies
This impact is
linked to Redeia's
activities in
operating the
electricity system
and developing the
transmission grid
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
Consumptio
n of energy
from non-
renewable
sources in
Redeia's
own
operations.
Own
operations
N
Current
S,M,L
Consumption of
energy from non-
renewable sources
in Redeia's own
operations.
Consumption
of energy
from non-
renewable
sources in
Redeia's own
operations.
Developing
emission
reduction
levers
This impact is
linked to all of
Redeia's business
activities
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
Energy
consumed
in Redeia's
own
operations
(indirect):
transmissio
n grid
losses.
Own
operations
N
Current
S,M,L
Transmission Grid
Losses: electricity
consumption that
contributes to
resource waste and
pollution associated
with additional
electricity
production.
Electricity
consumption
that
contributes to
waste of
resources
and pollution
associated
with
additional
electricity
production
Monitoring of
transmission
losses
This impact is
linked to Redeia's
activities in
operating the
electricity system
and developing the
transmission grid
The aspects linked to
this impact are directly
integrated in Redeia's
Strategic Plan
*Time horizon: S (Short term), M (Medium term), L (Long term).
Risks
Description of the cause of
the risk
Position in the value
chain
Time horizon
(*)
Current/anticipated effects
on the business model,
value chain, strategy and
decision-making
Current financial
effects arising from
risks.
Assessment of the
resilience of the strategy
and business model
regarding its capacity to
address material impacts
Damage caused to overhead
power lines by extreme
winds.
Own operations &
Customers and end-users
S,M,L
Higher maintenance costs,
disruption to the electricity
supply and reputational impact
associated with power outages
Effect on cash flows and
on Redeia's development
and position.
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Fire damage to power lines
and substations
Own operations &
Customers and end-users
S,M,L
Increased maintenance costs,
disruption to electricity supply
and reputational impact
associated with power
outages. Damage caused to
third parties or the environment
due to fire
Effect on cash flows and
on Redeia's development
and position.
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Damage to outdoor
transmission grid
infrastructure caused by high
temperatures.
Own operations
L
Increased costs of repairing
and replacing equipment and
shorter useful life. Increased
cost of equipment due to
design modifications to
increase resilience.
Effect on cash flows and
on Redeia's development
and position.
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Decline in water availability
for hydroelectric generation.
Own operations &
Customers and end-users
L
Impact on the functioning of
the electricity system, reduced
power generation availability,
lack of firm capacity and lack of
resources for pumping
(flexibility mechanism).
Effect on Redeia's
development and
position. This risk has no
financial impact for the
Company
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
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99
Lower efficiency of PV
generation due to rising
temperatures.
Own operations &
Customers and end-users
M,L
Impact on the functioning of
the electricity system due to
lower power generation
availability.
Effect on Redeia's
development and
position. This risk has no
financial impact for the
Company
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Increased absenteeism
associated with climate
change
Own operations
L
Availability of personnel to
carry out the work.
Effect on Redeia's
development and
position
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Insufficient information for the
real-time operation of the
system due to an increase in
renewable generation
facilities with outputs below 1
MW (current observation
threshold set by the System
Operator).
Own operations &
Customers and end-users
M,L
Greater difficulty in operating
the system, resulting in a
heightened risk of operational
incidents that could affect
supply, thus leading to higher
operating costs and possible
reputational impacts.
No financial effects
associated with the risk
have been identified
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Power disconnections due to
a prevalence of renewable
energy facilities within the
power mix without the
technical capabilities needed
to cope with disturbances.
Own operations &
Customers and end-users
S,M
Greater difficulty in operating
the system, resulting in a
heightened risk of operational
incidents that could affect
supply, thus leading to higher
operating costs and possible
reputational impacts.
No financial effects
associated with the risk
have been identified
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Additional restrictions on
renewable energy production
and incidents that could affect
supply security in the Canary
Islands, due to the significant
rise in the share of renewable
energies in the energy mix
forecast for future years.
Own operations &
Customers and end-users
S,M,L
Greater difficulty in operating
the system, resulting in a
heightened risk of operational
incidents that could affect
supply, thus leading to higher
operating costs and possible
reputational impacts.
No financial effects
associated with the risk
have been identified
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Loss of firm generation
performance due to the
closure of conventional power
plants (coal, combined cycle,
nuclear).
Own operations &
Customers and end-users
M,L
Increased difficulty in system
operation: reduction in both
firm capacity and balancing
capacity and heightened risk of
operational incidents that may
affect the supply. This might
produce reputational impacts.
No financial effects
associated with the risk
have been identified
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
Threats to cybersecurity in an
increasingly digitalised
system.
Cross-cutting
S,M,L
Fines and penalties arising
from data loss, leading to
reputational damage and
recovery costs.
Impact on cash flows,
Redeia's development
and position, access to
finance, and cost of
capital
The aspects linked to this
risk are directly integrated
into Redeia's Strategic Plan
*Time horizon: S (Short term), M (Medium term), L (Long term).
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Opportunities
Description of the cause of the
opportunity
Position in the
value chain
Time horizon
(*)
Current/anticipated effects on
the business model, value
chain, strategy and decision-
making
Current financial
effects that arise
from opportunities
Assessment of the
resilience of the strategy
and business model
regarding its capacity to
address material impacts
Development of the existing grid:
integration of new renewable energy
capacity, interconnections, high-speed
trains and support for the increased
electrification of society (investment in
lines, substations, interconnections,
protection systems and other network
infrastructure control and monitoring
Own operations
& Customers
and end-users
S,M,L
Contribution to security of
supply and therefore reputation.
Increased revenues relating to
remuneration on new assets
Impact on cash
flows, Redeia's
development and
position, access to
finance, and cost of
capital
The aspects linked to this
opportunity are directly
integrated into Redeia's
Strategic Plan
Development of storage in non-mainland
systems
Own operations
& Customers
and end-users
M,L
Contribution to security of
supply and enhanced
reputation. Increased revenues
associated with new projects
Effect on cash flows
and on Redeia's
development and
position
The aspects linked to this
opportunity are directly
integrated into Redeia's
Strategic Plan
Reputational improvement associated
with climate change performance
Own operations S,M
Access to capital
Impact on access to
finance and cost of
capital
The aspects linked to this
opportunity are directly
integrated into Redeia's
Strategic Plan
*Time horizon: S (Short term), M (Medium term), L (Long term).
Climate change adaptation
Impacts
1. Adapting the electricity system infrastructure for climate change
Redeia's own operations (construction of new infrastructure and meshing of the transmission grid) make a
significant contribution to making the electricity system more resilient vis-a-vis adverse climate phenomena
and changes in electricity generation/demand derived from climate change.
Moreover, actions aimed at making electricity system infrastructure more resilient to adverse weather events
also have a positive impact on the resilience of the system as a whole.
It is a current impact, with a short-, medium- and long-term time horizon.
2. Adapting the operation of the electricity system to climate change
Redeia has developed cutting-edge technology for operating the system, including renewable generation
forecasting models and demand flexibility mechanisms. These tools allow for closer monitoring and control,
thus making the electricity system more resilient to adverse weather events and changes in climate
parameters that could affect power generation, transmission and demand. This impact is positive and current,
with a short-, medium- and long-term horizon.
In relation to the incidents described, the increased resilience of the transmission grid and electricity system
has a positive impact both on the Company's business and more broadly on the value chain, including society
as a whole. The positive impact on people was a highlight (no material impacts on the environment were
detected), as a more resilient electricity system helps to ensure the continuity and stability of supply, with all
that this entails.
The group has weighed up the relative importance of this impact, given the need to maintain the operability
and efficiency of the electricity system under changing climatic conditions. The Company has included
adaptation as one of the pillars of its Climate Change Commitment, which will take place by identifying and
assessing the risks associated with climate change at different horizons and defining adaptation
measures/plans where necessary. More precisely, the Company is working to have an increasingly meshed
grid and to adapt both the infrastructure and the operation of the system to the new requirements imposed by
climate change. It was not considered necessary to change the business model.
Risks
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1. Damage caused to overhead power lines by extreme winds
Sections of overhead power lines can sustain damage and even collapse where extreme events exceed the
maximum wind parameters for which the lines were designed.
This risk affects both Redeia's own activity and that of its customers and users (social ecosystem) in the short,
medium and long term. The main current and expected effects arising from this risk are: damage to
infrastructure; impact on the supply of electricity; higher maintenance costs (repair costs) or costs associated
with fines/compensation and possible reputational impact due to supply disruption.
The Company has implemented various mitigation actions to reduce this risk: projects to improve and enhance
transmission network facilities, contingency plans and insurance policies. A particular highlight in the period
was the drafting of a wind map identifying expected winds at different geographical locations, as a valuable
input when undertaking new projects (selecting suitable sites and ensuring robustness support elements) and
in relation to the maintenance of existing assets (maintenance plans and reinforcement of facilities). The cost
of these additional (future) measures has yet to be determined. No changes in the business model have been
foreseen to address this risk.
The financial impacts of the risk are estimated considering the implementation of mitigation actions and are
determined for different time horizons (current, short, medium and long term) and climate scenarios. In all
cases, it was determined that the annual impact of this risk would be less than 1.5% of the Company's profit
for the year, so it is not considered to have a material impact on the Company's financial position, financial
performance or cash flows over the periods and scenarios studied.
On this basis, it can be said that the strategy and business model are resilient to this risk.
2. Fire damage to power lines and substations:
Temperature changes, dry soil and water scarcity cause greater desiccation of vegetation, increasing the risk
of fire that could severely affect facilities (substations and lines). The risk refers both to fires that may be
caused by Red Eléctrica's own facilities and those resulting from other factors.
This risk, which remains a threat in the short, medium and long term, affects both Redeia's own activity and
that of its customers and users. It can also endanger people and the natural environment. The main current
and/or expected effects are: damage to infrastructure; impact on the supply of electricity, possible impact on
third parties or the environment, increased costs (due to facility repair and maintenance, fines or
compensation) and reputational damage.
The Company has taken various steps to reduce and mitigate this risk, including: establishing and maintaining
firebreaks around power lines, fire prevention and response actions, R&D projects for the early detection of
fires, and insurance policies. No changes in the business model have been foreseen to address this risk.
The financial impacts of the risk are estimated considering the implementation of mitigation actions and are
determined for different time horizons (current, short, medium and long term) and climate scenarios. In all
cases, it was determined that the annual impact of this risk would be less than 1% of the Company's profit for
the year, so it is not considered to have a material impact on the Company's financial position, financial
performance or cash flows over the periods and scenarios studied.
In view of these considerations, it can be said that the Company's strategy and business model are resilient
to this risk.
3. Damage caused to outdoor transmission grid equipment due to high temperatures:
Rising average temperatures can affect outdoor equipment, affecting both its performance and its service life.
This risk affects Redeia's own activities and has a long-term time horizon. Notably, this could lead to higher
costs due to repair and refurbishment work, increased capital investments to renew existing equipment in the
event that it breaks down, and higher installation costs for new equipment if the Company has to change its
technical specifications. In more extreme cases, this risk could even threaten the supply of electricity. Aside
from insurance policies (currently in progress), the Company plans to conduct a detailed review of the
technical specifications (design) of the equipment and to respond to additional technical requirements where
this proves necessary (measure under development). As this is a risk that will materialise in the long term,
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work is now under way to quantify the expected financial impacts, which will likely have to do with the need to
adapt existing infrastructure. These impacts could be considerable in a worst-case scenario. No changes in
the business model have been foreseen to address this risk.
The strategy and business model are considered to be resilient to this risk.
4. Decline in water availability for hydroelectric power generation:
Changes in rainfall patterns and increased evaporation could affect the availability of water resources, thus
impairing hydro power generation. This could cause problems due to the resulting lack of available firm
capacity and also because of the lack of hydro power resources (considering also the role of pumping as a
mechanism for system flexibility), thus complicating the functioning of the electricity system.
This risk affects Redeia's own activity and that of its customers and users, in both cases over a medium- and
long-term horizon. The main risk associated with a lack of water resources is that it can affect the supply of
electricity, which could be significant in the long term and under a highly adverse climate scenario.
This risk has no financial impact for the Company.
Mitigating actions would include an improvement of forecasting systems, the availability of alternatives to meet
demand and the development of flexibility mechanisms. Not all of these actions are down to Redeia, as other
agents are needed to carry them out.
Despite this circumstance, the strategy and business model are considered to be resilient to this risk.
5. Lower efficiency of PV generation due to rising temperatures:
Higher ambient temperatures make photovoltaic panels less efficient.
This risk affects Redeia's own activity and that of its customers and users, in both cases over a medium- and
long-term horizon. It is likely that, in the medium to long run, by which time solar PV generation will carry a
very significant weight within the wider energy matrix, the operation of the electricity system may have to
contend with lower power generation availability.
This risk has no financial impact for the Company.
Mitigating actions would include an improvement of forecasting systems, the availability of alternatives to meet
demand and the development of flexibility mechanisms. Not all of these actions are down to Redeia, as other
agents are needed to carry them out.
Despite this circumstance, the strategy and business model is considered to be resilient to this risk.
6. Increased absenteeism associated with climate change
This relates to the risk of an increase in the rate of absenteeism from work due to the direct and indirect
consequences of climate change, as health has a lot to do with the prevailing climate. On this point, climate
change has a twofold effect: firstly, it changes the severity and frequency of related health problems and,
secondly, it has given rise to an unprecedented number of new health concerns, diseases or threats where
they did not previously exist.
This risk has a transversal impact and is a long-term concern. Increased absenteeism can affect productivity
and operating costs, with financial implications. As this is a risk that will materialise in the long term, work is
now under way to quantify the expected financial impacts. Reputational damage may also materialise if the
Company fails to put in place the necessary workplace wellness strategies.
Measures to counter this risk include the development and consolidation of health and wellness policies and
the need to define and implement structural changes in human resources policies and working practices to
adapt to chronic absenteeism.
The strategy and business model are considered to be resilient to this risk.
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Climate change mitigation
Impacts
1. Emissions savings in the electricity system
Red Eléctrica's activities as transmission agent and operator of the electricity system are essential for the
transition to an emission-free energy model by contributing to electrification and working to achieve the
maximum possible integration of renewable energies into the electricity mix.
This impact extends all along the value chain. It is a current impact, with short-, medium- and long-term
effects. It has positive effects for both the natural environment and people, owing to the significant savings
that can be achieved in greenhouse gas emissions within the wider electricity system.
This impact is fully linked to the Company's business model and strategy, as it is a direct product of Redeia's
activities.
2. Direct GHG emissions (Scope 1)
The main source of direct greenhouse gas (GHG) emissions is the leakage of SF6 gases in Redeia's own
installations. Scope 1 emissions also stem from its fleet of vehicles and from the use of air conditioning and
heating at its facilities and back-up generators.
These emissions are a current negative impact, with a short-, medium- and long-term horizon (although the
impact is likely to be considerably lower in the long term), resulting from the Company's own actions.
To mitigate this negative impact, the Company has set itself ambitious emission reduction targets and defined
the levers and actions to achieve them. Both the objectives and the actions needed to achieve them are set
out in the Climate Change Action Plan (CCAP).
It is considered that the Company's strategy and business model afford it the adaptive capacity needed to
cope with this impact.
3. Indirect GHG emissions (Scope 2)
Scope 2 emissions are the indirect greenhouse gas emissions associated mainly with energy losses from the
transmission grid and the electricity consumed by the organisation.
These emissions are a current negative impact, with a short-, medium- and long-term horizon (although the
impact is likely to be considerably lower in the long term), resulting from both the Company's own actions and
those of other actors present along the value chain (suppliers and producers of electricity).
To mitigate this negative impact, the Company has set itself ambitious emission reduction targets and defined
the levers and actions to achieve them (both the objectives and the actions needed to achieve them are set
out in the Climate Change Action Plan (CCAP)).
It is considered that the Company's strategy and business model afford it the adaptive capacity needed to
cope with this impact.
4. GHG emissions along the supply chain (Scope 3)
Scope 3 emissions are those generated along Redeia's value chain, mainly from direct and indirect suppliers.
These indirect emissions result mainly from activities such as the production of goods and services purchased
by the organisation.
These emissions are a current negative impact, with a short-, medium- and long-term horizon (although the
impact is likely to be considerably lower in the long term).
This negative impact is addressed through emission reduction targets and actions to achieve them, as set out
in the Climate Change Action Plan (CCAP).
It is considered that the Company's strategy and business model afford it the adaptive capacity needed to
cope with this impact.
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Risks
1. Insufficient information for the real-time operation of the system:
To bring about an effective increase in installed renewable generation capacity in the system, existing
management processes and systems must be adapted to meet more stringent monitoring and control
requirements. The increase in generation facilities with an installed capacity below the system operator's
observation and controllability threshold (mainly self-consumption facilities) entails greater uncertainty
because there is no way of reliably knowing how much power they produce, which poses a risk to the secure
operation of the electricity system.
This is a medium- and long-term risk and affects Redeia's own operations and those of its customers and
users.
The main impact would likely affect the supply of electricity, which could in turn cause reputational damage.
A monetisation exercise to determine the effects of this risk over the identified horizons and scenarios did not
reveal any significant financial impacts associated with this risk (no material impact on financial position,
financial performance or cash flows).
2. Power outages due to high penetration of renewable energies:
The high penetration of renewable generation without the necessary technical capabilities in place to keep
them operating properly in the event of a disturbance (small generators or self-consumption generators) can
cause power generation outages, which could be severe in some cases, thus disturbing the generation-
demand balance and significantly affecting the supply of electricity and, indirectly, the Company's reputation.
A monetisation exercise to determine the effects of this risk over the identified horizons and scenarios did not
reveal any significant financial impacts associated with this risk (no material impact on financial position,
financial performance or cash flows).
This risk has been found to exist for the short and medium term. It affects both own operations and those of
customers and users.
3. Further Increased restrictions on renewable production and incidents that could affect security of
supply in the Canary Islands:
The Canary Islands' electricity system is made up of several isolated systems, in which a highly significant
increase in the penetration of non-manageable generation is foreseen (expected to rise from 17% to over 50%
by 2030). This relates to risks 5 and 6 in the specific case of the Canary Islands.
The risk arises from the fact that this increased penetration of non-manageable generation is hard to deal with
from a technical standpoint, possibly resulting in the system operator having to limit the maximum production
of these facilities over supply security concerns, which would mainly impact the Company's reputation.
Moreover, failure to respond adequately to these security-side issues by the system operator could lead to
incidents involving a loss of supply, leading to possible financial losses due to claims for Energy Not Supplied
(ENS). However, our analysis of the financial impacts over the time horizons and scenarios considered
(monetisation of impacts) revealed that these would not be significant (no substantial impact on financial
position, financial performance or cash flows).
This risk has been found to exist over a short-, medium- and long-term time horizon and affects both own
operations and those of customers and users.
The measures to address risks 5, 6 and 7 are common: tools for system operation and safe integration of
renewable energies (Renewable Energy Control Centre, CECRE), developing and improving renewable
generation forecasting models, strengthening monitoring and control systems at existing facilities, readying
the grid for the high integration of renewables expected down the line, incorporating new elements such as
synchronous condensers or storage infrastructure in the electricity systems of non-mainland territories. Many
of these measures, and others aimed at achieving a greater penetration of renewable production, will require
regulatory development.
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It is considered that the Company's strategy and business model provide the necessary adaptive capacity to
address this impact. However, as just noted, this capacity depends to a large extent on regulatory
developments that cannot be carried out by Redeia alone but require other actors in the electricity system to
play their part.
4. Loss of firm generation performance due to the closure of conventional power plants (coal,
combined cycle, nuclear):
The closure of conventional generation plants such as coal, combined cycle and nuclear (in response to
regulatory requirements) leads to a reduction in the firm generation and balancing capacities of the electricity
system, as well as its strength and inertia.
This increases the risk of operational incidents that could affect supply and damage the Company's reputation.
This carries a risk over a short- to medium-term horizon. It affects both own operations and those of customers
and users.
A monetisation exercise to determine the effects of this risk over the identified horizons and scenarios did not
reveal any material financial impacts for the Company (no material impact on financial position, financial
performance or cash flows).
Several actions or measures have been identified to address this risk: strengthening international
interconnections, commissioning storage systems, developing the technology for power electronic converters
and other technologies that will enable renewable generation to fortify and satisfy the needs of the inertia
system, or promoting flexibility mechanisms and smart grids.
It is considered that the Company's strategy and business model provide the necessary adaptive capacity to
address this impact. However, this capacity depends to a large extent on regulatory developments or
technological developments that cannot be carried out by Redeia alone but require other actors in the
electricity system to play their part.
5. Threats to cybersecurity in an increasingly digitalised system:
A more decarbonised energy system must be predicated on further digitalisation. The existence of significant
digitisation and increased connectivity inevitably means exposure to the risk of attack or some other incident
affecting IT systems and digital environments.
The materialisation of this risk could affect both the supply of electricity and entail costs and reputational
damage. It is a short-, medium- and long-term risk and exists all along the value chain, as it could affect the
Company or any other agent present within the electricity system.
The risk could have financial implications in both the medium and long run. The Company is currently working
to calculate the monetary impact.
As for the actions being taken to mitigate this risk, the Company has taken steps to protect against cyber-
attacks, which have proven effective so far. However, we have identified the need for intensive technology
watch and further regulatory development along these lines.
It is considered that the Company's strategy and business model provide the adaptive capacity needed to
cope with this impact.
Opportunities
1. Development of the existing grid:
Here we are talking about the opportunity to build new infrastructure to enable the energy transition (integration
of new renewable power, interconnections and support for the electrification of society).
It will have a positive impact along the value chain of the activity, as a core part of the Company's business
model, and on customers and users, people (society as a whole) and the natural environment. It is viewed as
a short-, medium- and long-term opportunity.
Further developing the transmission network will improve the Company's business by contributing to security
of supply and enhancing its reputation.
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To unlock this opportunity, the 21-25 strategic plan prioritises energy transition. To succeed, the further
development of transmission infrastructure is hugely important.
The financial impact of this opportunity is highly significant, meaning higher revenues due to the remuneration
earned by the new assets. Considering the infrastructure envisioned in the 21-26 Electricity Plan (as reflected
in the Strategic Plan), the impact of this opportunity has been estimated at 10% to 20% of annual earnings.
This financial impact has already materialised.
Redeia's strategy and business model are fully geared towards seizing this opportunity.
2. Development of storage in non-mainland systems:
Redeia has identified an opportunity relating to the further development of island storage systems, which will
make the Company better able to integrate renewable energies and provide the island systems with greater
flexibility and security.
The impact exists along the value chain in relation to the Company's own activity and that of its customers
and users and is considered an opportunity in the medium and long term.
The further development of storage systems will have a positive impact on the wider electricity system (impact
on supply), while also improving the Company's position within the sector and enhancing its reputation in
terms of sustainability.
The financial impact of this opportunity is considered significant and relates to the revenues that will flow from
the new storage infrastructure. This impact has not yet materialised and is expected to peak in the long term.
The Company is currently working to calculate the monetary impact.
It is considered that the Company will be able to tap this opportunity based on its current strategy and business
model.
3. Reputational improvement associated with climate change performance:
Redeia can enhance its reputation by doing an outstanding job when it comes to climate change mitigation
and adaptation. This could facilitate access to capital and improve the Company's market position, with
positive impacts in terms of financing, heightened investor interest and a better perception in the public eye.
This opportunity relates to the Company's own business and will materialise over the short and medium term.
This opportunity is expected to have a significant positive impact.
The Company's strategic plan incorporates and prioritises climate change issues: it establishes energy
transition as a priority and sustainability as a strategic pillar. Redeia also has a climate change commitment
and action plan to boost its performance when it comes to climate change mitigation and adaptation.
It is considered that the Company will be able to tap this opportunity based on its current strategy and business
model.
Energy
Impacts
1. Integration of renewable energy into the electricity system
Red Eléctrica's activities as transmission agent and operator of the electricity system are essential for the
transition to an emission-free energy model. The Company plays a key role in helping to maximise the
integration of renewable energies into the electricity mix: it builds the infrastructure needed to unlock new
renewable power and operates the system, maximising its inclusion in the wider energy mix.
This impact extends all along the value chain. It is a current impact, with short-, medium- and long-term effects.
It has positive effects for both the natural environment and people, owing to the significant savings that can
be achieved in greenhouse gas emissions due to the further integration of renewable energies.
This impact is fully linked to the Company's business model and strategy, as it is a direct product of Redeia's
activities.
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2. Consumption of energy from non-renewable sources in Redeia's own operations
The consumption of energy from non-renewable sources in Redeia's own operations carries a negative impact
in terms of sustainability and greenhouse gas emissions.
This negative and current impact relates to Redeia's own operations and extends over the short, medium and
long term (although the Company's action plans should significantly reduce the impact).
To mitigate the negative impact, the Climate Change Action Plan envisions various targets and actions to
reduce energy consumption and minimise the use of non-renewable energy sources.
It is considered that the Company's strategy and business model provide the adaptive capacity needed to
cope with this impact.
3. Energy consumed in Redeia's own operations (indirect): transmission grid losses
Transmission grid losses are a form of indirect consumption of energy affecting Redeia's operations, leading
to a waste of resources and the ensuing pollution due to the additional electricity that must be produced to
make up for these losses.
This impact is current and negative, affects own operations, and extends over a short-, medium- and long-
term horizon.
This negative impact is addressed through emission reduction targets and the Climate Change Action Plan
(CCAP).
It is considered that the Company's strategy and business model provide a certain degree of adaptability
needed to address this impact, although it should be noted that Red Eléctrica has no control over the main
underlying causes of these losses. The structure of electricity generation and flows within the transmission
grid depend on the rules of the electricity market, which is regulated by an independent body. Red Eléctrica
must perform its role as electricity system operator in strict compliance with a set of specific and mandatory
operating procedures. According to these procedures, it is not possible to operate the electricity system
according to loss reduction criteria, meaning the Company has very limited capacity to act.
11.2.2.3 Impact, risk and opportunity management
a. Description of the processes to identify and assess material climate impacts, risks and
opportunities. ESRS 2 / IRO 1
Redeia has conducted a double materiality assessment, as required under ESRS 1, to identify the most
relevant climate-related incidents, risks and opportunities for the Company from both perspectives (impact
materiality and financial materiality), applying specific criteria and thresholds to determine their materiality.
Moreover, significant impacts —including those associated with climate change— are assessed within the
framework of the Environmental Management System
The Group has also conducted a resilience analysis that supports the same assessment needs as the double
materiality assessment.
Redeia follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and
has a methodology in place to identify, prioritise and quantify, from an economic perspective, physical and
transition risks and opportunities. This methodology has been followed at the electricity business since 2019
and was extended to the Latin America and telecommunications businesses in 2021. Redeia's resilience
analysis covers not only the Group's own operations, but also the upstream and downstream stages of the
value chain, addressing both physical risks associated with changes in climate parameters and transition risks
related to the fight against climate change. No risks have been excluded from the analysis.
Climate risks fall into two main categories:
•
Physical risks: Relate to changes in climatic variables (hazards), which may affect the Company's
infrastructures (electricity or telecommunications) as well as its activities. Redeia identifies climate-related
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hazards under various climate scenarios. The Company assesses how its assets and business activities
could be exposed and sensitive to these hazards, as well as their time horizon, generating gross physical
risks.
The following hazards have been identified:
» Rising temperatures High temperatures
» Extreme events: high wind, torrential rain (floods), cold snaps and snowstorms
» Sea level rise
» Wildfires
» Water resource availability (rainfall + evapotranspiration)
•
Transition risks: These risks are associated with regulatory and technological changes needed for the
energy transition (transition climate events). These risks are particularly relevant for Redeia as a
transmission company and operator of the Spanish electricity system, as the necessary regulatory and
technological changes for the energy transition needed to achieve the climate targets pose a series of
challenges and uncertainties, which could affect its business. Redeia determines the transitional climate
events considering a climate scenario in line with limiting global warming to 1.5°C. The Company
identifies and assesses the transition risks associated with climate change and takes proactive steps to
manage and control them. The Comprehensive Risk Management Policy states that regulatory risk
management should be proactive and anticipatory, aimed at collaboration with regulators and viewed on
a medium- and long-term horizon.
The most notable climate events to have been identified include:
◦
Policies, regulations and actions aimed at energy transition:
▪
Increase in renewables
▪
Increased self-consumption, distributed generation
▪
Restrictions on the use thermal and nuclear power plants
▪
Pressing need to build new infrastructure within a relatively short time frame
◦
Policies, strategies, actions aimed at curbing greenhouse gas emissions
▪
Banning or limiting the use of fluorinated gases
▪
Increased energy efficiency requirements
▪
Carbon taxes and charges
Redeia's risk analysis is carried out over three time horizons and under various scenarios (physical and
transition). The horizons have been defined while taking due account of the useful life of the facilities (in the
case of electricity infrastructure, this is considered to be 40 years) and the strategic and regulatory planning
periods.
Basic assumptions for the resilience analysis
Redeia considers various time horizons. More precisely, these horizons are:
› Short term (until 2026): looks at the Company's strategic plan and the validity and effectiveness of its
electricity plans. No material physical changes are expected.
› Medium term (until 2030): 2030 is a milestone for various climate targets of the European Union and
those envisioned in Spain's own National Energy and Climate Plan (NECP). Certain physical changes
—minor or similar to those currently materialising— may begin to be perceived.
› Long term (2030 onwards).
(a) Transition risks (until 2050): 2050 is the target year for climate neutrality, with regulatory
changes and technological advances expected to take place between 2030 and 2050.
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(b) Physical risks (beyond 2050): In the case of physical risks, the most material changes are
expected to materialise from 2050 onwards (the electricity infrastructure being built now will be
in service at that time).
•
As a reference for the physical scenarios, the Company uses the SSP scenarios set out in the Sixth
Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC) and their equivalent
Representative Concentration Pathways (RCPs). To further specify the various scenarios, the projections
developed by the State Meteorological Agency (AEMET) for Spain have been considered and the
projections made by the World Bank for Latin America have been taken as a reference point. Notably, the
governance model for the management of climate risks and opportunities does not require these scenarios
to be updated annually.
•
For the transition scenarios, the scenarios put forward by the International Energy Agency in its Word
Energy Outlook reports have been taken as a reference point: STEPS, APS and NZE. These are
supplemented with further information on relevant variables by business and geographic area. In the case
of the electricity business in Spain, the Company considered the scenarios proposed by the TYNDP
(ENTSOE's 10-year Network Development Plan) for 2050 and the scenarios set out in Spain's National
Energy and Climate Plan (NECP) for 2030, which proposed a 23% reduction in emissions compared to
1990 (a target that has been raised to 32% in 2024) and a 74% share of renewables in electricity
generation (raised to 81% in 2024). These targets are aimed at achieving carbon neutrality by 2050
(entailing a 90% reduction in emissions compared to 1990 and a 97% share of renewable energies in final
consumption, with the electricity sector becoming 100% renewable), thus ensuring alignment with the NZE
2050 scenario and RCP2.6 and, therefore, with the objective of keeping the temperature increase to below
1.5 ºC.
IPCC physical scenarios –
Horizon 2030-2050-2070
Transition scenarios (IEA/NECP)
2030-2050 horizon
RCP 8.5
(SSP5-8.5)
BAU scenario
•
No climate policies applied.
•
Highly significant increase in emissions.
RCP 6.0
Trend (STEPS)
•
Trend-based change in climate policies.
•
Emissions growth exceeds the target envisioned in the Paris Agreement.
•
Scenario compatible with an average temperature increase of 2.4 °C by
2100.
RCP 4.5
(SSP2-4.5)
RCP 2.6
(SSP1-2.6)
Announced
pledges (APS)
•
Significant policy changes needed to achieve the Paris Agreement target (in
Spain, compatible with the NECP target scenario).
•
The APS is compatible with an average temperature increase of 1.7 °C and
NET ZERO with an increase of 1.5 °C by 2100.
Methodology and tools used
Redeia relies on a methodology that includes the identification, analysis, assessment, management and
control of risks. This methodology is predicated on a uniform set of criteria and within the risk levels
established, ensuring that any risks that could affect Redeia's strategies and objectives are systematically
identified, analysed, assessed, managed and controlled. Risk mitigation actions are also taken to minimise
risks, with contingency plans put in place and coverage established for such risks where possible.
Potential risks are identified by a team of experts and are reviewed at least once every three years, although
they may be updated whenever necessary.
The Company has flagged 127 potential risks (physical and transition), which are assessed on the basis of
exposure, sensitivity and resilience criteria. This procedure considers various economic variables and other
business indicators, including impact on the supply of electricity, on telecommunications services and on
reputation.
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As a result of this prioritisation, risks are sorted into four categories (low, medium-low, medium-high, and high)
with high and medium-high risks considered material for the business and which are monetised to quantify
their financial impact (the risks are monetised for the short- and medium-term horizons). As Red Eléctrica is
engaged in a regulated activity, not all priority risks for Redeia necessarily entail a financial impact for the
organisation.
b. Policies related to climate change mitigation and adaptation E1-2 MDR-P
2030 Sustainability Commitment
Redeia's Board-approved 2030 Sustainability Commitment embodies its commitment to its long-term
endurance by forging a business model capable of creating shared value for all stakeholders and doing
business responsibly.
Among the sustainability priorities set out in this commitment are "Decarbonisation of the economy" (which
would include issues related to climate change mitigation) and "Anticipation and action for change" (which
covers issues related to climate change adaptation).
Commitment to climate change
Aside from its Sustainability Commitment, Redeia has embraced a specific commitment to combat climate
change (also approved by the Board of Directors), which is embodied in its commitment to achieving zero net
emissions by 2050, in the medium-term emission reduction targets (2030) and the Climate Change Action
Plan.
Redeia's pledge to combat climate change is based on four main courses of action. The first line is to push
towards a decarbonised economy. Redeia focuses on developing infrastructure that will enable electrification
and the further integration of renewable energies, thus optimising the functioning of the electricity system and
developing electricity interconnections. Digitalisation and connectivity are also promoted through the Group's
technology companies.
The second line is to reduce the carbon footprint. The aim is to reduce the greenhouse gas (GHG) emissions
associated with the Group's activities by calculating and reporting the carbon footprint, setting emission
reduction targets and taking specific steps to reduce emissions of SF66 and other fluorinated gases and energy
consumption. It is also working to reduce losses in the transmission grid, promote sustainability along the
supply chain and offset emissions to move towards carbon neutrality through nature-based solutions.
The third line is to position and disseminate the climate commitment. The aim here is to inform and engage
stakeholders by disseminating knowledge about the electricity system and the energy transition, as well as to
collaborate in initiatives against climate change promoted by public administrative bodies and other
organisations.
The fourth line is adapting to climate change. The aim is to prepare for the physical, social, economic and
regulatory changes resulting from climate change by identifying and assessing risks and opportunities, and
implementing the necessary adaptation measures to ensure that the energy system is resilient to these
changes.
Sustainability Policy
This policy envisions various environmental improvement measures and specific projects for the protection of
species and habitats, with the overriding aim of generating a net positive impact. It also sets out Redeia's
sustainability-related principles, guiding all activities towards a responsible management model, focused on
excellence and value creation for stakeholders and maximising Redeia's contribution to the Sustainable
Development Goals. This policy applies to all Redeia Group activities, including the construction, operation
and maintenance phases of electricity infrastructures in Spain and other countries such as Peru, Chile and
Brazil, with no geographical or activity-based exclusions.
The Group is committed to respecting the guidelines of the Task Force on Climate-related Financial
Disclosures (TCFD) and the Spanish Business and Biodiversity Initiative (IEEB) promoted by the Ministry for
Ecological Transition and the Demographic Challenge (MITERD), working also alongside the International
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111
Union for Conservation of Nature (IUCN) and SEO BirdLife. The policy has been drawn up while listening to
the feedback received from stakeholders, thus ensuring that the interests of all affected parties are considered.
It is available to all stakeholders on the Redeia Group's website and is actively communicated in sustainability
reports and other public documents.
Environmental Policy
This policy enshrines the principles and commitments there to ensure the conservation and improvement of
the natural environment in all activities carried out by the Company. It applies to all companies in which Redeia
holds a majority stake and fosters principles aligned with it among its business partners and collaborators.
The principles include ensuring compliance with environmental legislation, contributing to an environmentally
friendly delivery model, preventing environmental risks, and stepping up the commitment to the fight against
climate change. Biodiversity and natural capital are also considered key factors, integrating circular economy
criteria for a sustainable use of resources. The policy likewise promotes innovation, training and environmental
awareness, and transparency when disclosing environmental performance. The Sustainability Committee
supervises and regularly reviews compliance with this policy, which can be found on Redeia's website and
corporate intranet.
Management of climate change risk
Climate change risk management is built into the Company's risk management and such risks are subject to
the governance model for this purpose. Aside from being supervised by the Audit Committee of the Board of
Directors, as part of its oversight role over the end-to-end risk control system, climate risks and opportunities
are also submitted to the Board's Sustainability Committee. This committee's duties include reviewing the
corporate responsibility and climate change policies and overseeing compliance, so as to ensure that the
results of the analysis of risks and opportunities arising from climate change are integrated into the Group's
decision-making processes
c. Actions and resources in relation to climate change policies E1-3 / MDR-A
Redeia, mainly through its activities in the electricity business, is a key and proactive agent in the energy
transition towards a zero emissions model, the main elements of which should be: the electrification of the
economy, the full integration of renewable energy into the energy mix, and efficiency, while always ensuring
the security of supply. Furthermore, the Group's activities in developing telecommunications to make further
progress towards digitalisation and connectivity can also make a significant contribution to the ongoing
process of decarbonising society.
Redeia's activities are therefore key to achieving the climate and energy objectives in Spain and Europe, both
in the medium (2030) and long term (climate neutrality by 2050).
The lines of action needed to implement the climate change policies are set out in the Climate Change Action
Plan (CCAP), broken down into the following blocks:
I. Contribution to a sustainable energy model
› Development of infrastructure to enable the electrification of the economy, connect up new renewable
power, reduce technical constraints, and power the railway network. Highlights include the
development of international and inter-island electrical interconnections to ensure an uninterrupted
supply of power, given the intermittent nature of renewable generation.
› Maximum integration of renewable energies into the electricity system by optimising system operation
and the performance of the Renewable Energy Control Centre (CECRE), to be achieved by improving
forecasting tools, integrating more distributed generation and developing energy storage systems that
will allow for the integration of renewable energies, thus ensuring the security of the system.
› Furthering efficient grid management by fostering technological innovation (smart grids and
digitalisation), incorporating new elements and services, and applying new flexibility measures.
II. Carbon footprint reduction
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› Reducing SF6 emissions (25% compared to 2015) by preventing, detecting and controlling leaks,
improving monitoring and repair techniques, renewing equipment (mainly from 2026) and promoting
alternatives to SF6.
› Reducing energy consumption and associated emissions: use of 100% renewable electricity,
implementation of energy efficiency measures in buildings and sustainable mobility.
› Reducing emissions from grid losses by increasing the share of renewable energy in the electricity
mix: at least 60% in 2025 and 74% by 2030.
› Reducing emissions associated with the supply chain through collaborative programmes to
encourage suppliers to set reduction targets aligned with the SBTi, as well as factoring sustainability
criteria into purchasing decisions.
› Emissions offsets: 100% of Scope 1 emissions by 2025 and increased ambition for 2026-2030
through the Electricity Grid Forest and other nature-based solutions, the purchase of carbon credits,
and the development of new offset projects.
III. Climate change adaptation
The Company regularly identifies and assesses the risks and opportunities arising from climate change and
plans and takes various actions within the framework of this analysis. It should be noted that Redeia's activity
as a whole is a key element in adapting the energy system to the risks arising from climate change. As set out
in the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the financial
impacts of material risks and opportunities are quantified under various physical and transition scenarios.
Information related to this work is disclosed in the ‘Risk management' chapter of this report.
IV. Positioning and outreach
Redeia works hard to communicate and involve stakeholders in its commitment to climate change. The main
aim is to disseminate knowledge and provide complete and transparent information on the electricity system
and its role in the energy transition, while also championing different energy efficiency measures. Notably,
Redeia is a member of the Spanish Green Growth Group, an association that works to promote public-private
partnerships as means of making joint progress towards the decarbonisation of the economy. It mainly targets
aspects related to climate change mitigation and adaptation and the circular economy.
Actions taken to reduce emissions, reductions achieved and those planned.
One of the four blocks into which the priorities of the CCAP are structured relates specifically to the need to
reduce the carbon footprint. The actions carried out and planned by Redeia in this regard are described below,
related to the specific decarbonisation levers in which they are included:
a) SF6 emission reductions
SF6 is a dielectric gas present in electricity transmission installations. SF6 emissions are largely associated
with small leaks emanating from leaking equipment, as well as leaks during gas transfers and accidents or
faults. This is a priority concern for Redeia and various reduction initiatives are currently under way:
1. Leak prevention, detection and control:
› Improving preventive maintenance work
› Reducing detection and intervention times in case of faults.
› Developing effective leak repair methodologies to repair leaks at gas insulated (SF6 insulated)
substations (GIS), so as to facilitate and speed up the work. In 2024, 17 leaks —mainly associated
with corrosion or ageing of equipment— were successfully repaired.
› Designing improved roofs for existing installations to prevent degradation of materials due to
atmospheric agents and, therefore, leakage. In 2024, work got under way to cover the 400kV GIS at
Pola de Gordón. This work will be completed in 2025.
› Including further requirements in procurement tenders to help minimise gas losses (rapid intervention
in cases of leakage and equipment design criteria, among other aspects).
› Replacing SF6 gas with nitrogen (N2) in equipment stored as spare parts.
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113
2. Renewal of switchgear: The progressive renewal of old equipment and those presenting very high
leakage rates is a significant course of action in quantitative terms. Significant progress was made in
2024 towards the renovation work at the Litoral 400 kV substation, which began in 2022. Due to its age
and prevailing environmental conditions, the gas emissions to have occurred at this facility are among
the highest reported by the Company in recent years.
3. Reduction of installed SF6 and search for alternatives to gas: Red Eléctrica is committed to promoting
alternative solutions to SF6, which are currently under development. To succeed in this task, it takes part
in various technology monitoring and experience exchange groups with other agents in the electricity
sector, mainly with equipment manufacturers and other European TSOs, notably the Mission project, the
aim of which is to share the results of field tests of various types of switchgear featuring alternatives to
SF6.
The Company is developing some highly promising pilot projects such as the inclusion of an alternative
gas in the pipelines and busbars of two 400 kV substations. Red Eléctrica also has two 66 kV GIS cubicles
with alternative gases, located in the Canary Islands for use as mobile positions. In addition, in 2024 an
additional circuit breaker was installed to join the three SF6-free AIS circuit breakers (CO₂ + O₂
technology) installed in 2023. Moreover, further progress will be made towards the technical qualification
and approval of new gas-free models, the pipelines and busbars of two 400 kV substations. Red Eléctrica
also has two 66 kV GIS cubicles with alternative gases, located in the Canary Islands for use as mobile
positions. An additional SF6-free AIS switch (CO₂ + O₂ technology) was installed in 2024 to join the three
installed in 2023 and the technical qualification and approval of new gas-free models will continue as we
move forward.
4. Training: Red Eléctrica is legally certified to deliver training on gas handling. A total of 541 employees
have been trained since 2013, with 444 officially certified. Moreover, dedicated technical training sessions
on GIS technology are held to enhance maintenance and leak repair.
5. Collaboration with other stakeholders: Redeia works alongside public administrative bodies and other
entities to find solutions for controlling and reducing these emissions within the framework of the voluntary
agreement signed in May 2015 (and currently in the process of being renewed) between the Ministry for
Ecological Transition and the Demographic Challenge, manufacturers and suppliers of electrical
equipment that use SF6, electricity transmission and distribution companies and waste managers of this
gas and the equipment that contains it. The aim is to find a more environmentally friendly end-to-end
management system for the use of SF6 in the electricity industry.
Thanks to all these initiatives, a 32% reduction in SF6 emissions has been achieved since 2015. Looking
ahead to 2030, a 25% reduction is expected compared to the base year of 2015. (It is important to consider
that SF6 emissions are directly related to the amount of gas installed and the age of the equipment. While in
2024 the reductions achieved were more significant than expected, an increase in these reductions associated
with these factors is to be expected).
b) Reduction of energy consumption and related emissions
One of the cornerstones of the Company's commitment to climate change is its pledge to ensure energy
efficiency at all levels. To succeed, the following actions are carried out:
1. Carrying out energy audits every four years to identify the levers for reducing energy consumption. In
2024, these audits were carried out at 20 work centres and corporate buildings and also for the vehicle
fleet. As a result, at least 80 feasible saving measures were identified that would lead to an estimated
saving of 400 MWh/year. Meanwhile, the photovoltaic viability of 28 work centres —selected for their
potential (high consumption and suitable climate zone)— was analysed. Of these, 15 were found to be
viable, which between them would generate an estimated 300 MWh/year. The feasibility of electrifying
the fleet and thus reducing fossil fuel consumption was also analysed, revealing that savings of up to 5
GWh could be achieved. These actions will be addressed in the next review of the Climate Change Action
Plan in 2025, when the energy efficiency targets will be updated.
2. Energy efficiency measures to reduce electricity consumption:
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› Changing light fixtures to LED technology, installing motion detectors and lighting sensors, central
heating timers and window protection elements.
› Adjusting the air-conditioning and lighting parameters in buildings.
› Energy management system certified by the ISO 50001:2018 standard at Redeia's headquarters and
at Redeia Campus.
› Nearly zero energy buildings (NZEBs).
› Awareness campaigns
› Measures relating to computers and the like: incorporating maximum efficiency criteria and migrating
to virtual servers.
› Night-time shutdown of 446 substations, thanks to improved remote lighting control systems.
The implementation of these initiatives has led to a 13.3% reduction in the electricity consumed at Red
Eléctrica's work centres since 2015, as well as a 5% reduction in the Group's total electricity consumption
with respect to 2023. (Expected reductions: 30% reduction in electricity consumption at Red Eléctrica work
centres by 2030 compared to 2015).
c) Use of renewable energy
Most of the electricity supply contracts managed by the Company have renewable energy Guarantees of
Origin (GoO) or international renewable energy certificates (IRECs).
Redeia has used the following instruments in relation to Scope 2 (market-based) emissions:
•
Procuring renewable energy with Guarantees of Origin (GoO): 75.2% of total electricity consumption.
•
International Renewable Energy Certificates (IRECs): 14.8% of total electricity consumption.
•
In addition, IRECS were acquired to cover grid losses in the infrastructure operated in Peru and Chile
(113,031 MWh), equivalent to 2% of total indirect energy consumption associated with grid losses.
Meanwhile, further progress was made in implementing self-consumption facilities at the Company's work
centres: thermal solar energy for domestic hot water, geothermal energy (three buildings) and photovoltaic
solar energy (17 work centres).
Moreover, work is under way to increase the use of renewable energy for the backup generators present at
the facilities. Notably, two pilot projects were carried out involving the use of portable hybrid panels to power
substations that are not yet connected to the distribution grid, and work is currently under way to replace diesel
with a 100% plant-based fuel (project developed in 2024).
Thanks to these measures it is possible to increase the percentage of renewable energy consumed in the
organisation:
› 62% renewable energy out of total energy consumption (1)
› 94% of renewable energy out of total electricity (2)
› 96% of electricity procured/self-consumed from renewable sources (expected 100%) (3)
1) This figure does not consider the share of renewable electricity in the national energy mix. If included, the value would be 62.8%.
2) This figure does not consider the share of renewables in the national energy mix. If the renewable part of the mix is considered, the value would
be 95.3%.
3) Some workplaces do not have an electricity supply and are powered by the transmission grid. Therefore, they have not been counted when
calculating the trend toward the 100% renewable energy target. In 2024, they accounted for 2.34% of the total electricity consumed.
d) Sustainable mobility
Redeia is working hard to optimise the travel needed to carry out its business activities and to reduce the
related emissions. The Company has a Sustainable Mobility Plan in place, which aims to instil a new culture
of mobility across the organisation. Notable actions on this front include:
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115
•
Prioritising the best available technologies in fleet vehicles (hybrid, plug-in hybrid or electric, with 77% of
vehicles having an ‘A' energy rating).
•
Optimising vehicle use by implementing the Agile, Responsible and Safe Driving System, enabling the use
of efficient routes and responsible driving.
•
Ensuring the existence of a pool of 100% electric vehicles to cover corporate needs.
•
Optimising business travel by promoting and improving communication tools to reduce travel (video-
conferencing and remote access platforms) and factoring sustainability criteria into the Company's travel
policy.
•
Measures to reduce the use of combustion vehicles for commuting to work: company transport service
and shuttles to connect offices, promoting carpooling and including the transport card among the various
in-kind options available to employees. Enabling electric vehicle charging stations for employees.
•
Thanks to all of the measures described in this heading, Redeia has achieved a 26% reduction in
emissions associated with energy consumption compared with the 2019 value (65% since 2015).
e) Reduced emissions due to losses in the transmission grid
Energy losses from the transmission grid are the contributor to Scope 2 emissions. These losses are
calculated by looking at the energy dissipated in the grid (transmission grid losses) and applying the emission
factor of the energy mix for each of the systems.
None of these variables is directly controllable by Redeia, although the Company is working to improve those
aspects it can influence and which could reduce losses. Notably, in the case of Spain, Red Eléctrica's efforts
to safely integrate as much renewable energy as possible into the transmission grid have a direct impact in
reducing these emissions.
In 2024, the share of renewables within the national electricity system came to 56.8% (37.5% in the base year
of 2019), with emissions associated with transmission grid losses down 34% compared with 2019 levels.
Meanwhile, emissions due to losses at the Company's facilities in Peru and Chile were reduced to zero (zero
tCO₂ in 2024), thanks to the acquisition of renewable energy certificates (IRECs).
Total emissions from transmission grid losses have fallen by 35% since 2019. (Expected reduction of around
57% compared to 2019).3
f)
Reduced emissions associated with the supply chain
Emissions associated with the supply chain are the most relevant for Redeia when it comes to Scope 3
emissions. The Company has taken various steps to achieve further reductions, working from two angles:
•
Developing and implementing the calculation of emissions associated with the main supplies under the
LCA (Life Cycle Analysis) methodology, and incorporating circularity and climate change criteria into its
procurement decisions. Since the project got under way in 2022, work has been carried out on 11 supplies
(10 relating to equipment and 1 to service). More precisely, the following aspects were analysed in 2024:
substation structures, underground cables, insulators (glass and composite), disconnectors and
instrument transformers.
•
Collaboration with key suppliers through a specific programme aimed at extending Redeia's emissions
reduction commitment all along the supply chain.
As expected, no emission reductions have materialised since the base year 2019. The first actions
along these lines were aimed mainly at improving the knowledge and calculation of emissions in order to
increase the percentage of real data and the quality of the information, which is essential to be able to identify
3 This percentage does not relate to any reduction target. It has been calculated considering the overall Scope 1 and 2 emission target and the specific
Scope 1 emission reduction target.
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and analyse the effectiveness of reduction measures. The supplier training and awareness-raising work
carried out within the framework of the partnership programme will not lead to direct reduction in emissions in
the short term, despite having led to an improvement in the level of maturity among those taking part (increase
in suppliers with verified carbon footprints and suppliers with SBTi-approved emission reduction commitments
in 2014: 15 SBTi-approved suppliers and one SBTi-committed company). Moreover, the increase in Company
activity (higher investment) also pushed up emissions associated with the supply chain, although it was not a
proportional increase thanks to the work being carried out along these lines. (Emissions associated with the
supply chain were up 6% compared to 2023, with the amount certified having increased by 55%).
g) Emission offsets
Aside from the measures in place to reduce emissions and minimise the Group's carbon footprint, additional
carbon offsetting actions are carried out. As part of its strategy to move towards climate neutrality, Redeia has
pledged to offset all direct emissions that it is otherwise unable to reduce from 2023 onward (as it happens,
this measure was brought forward to 2022).
More precisely, in 2024 a total of 26,613 tCO₂eq were offset, exceeding 26,003 tonnes of CO₂
corresponding to all Scope 1 emissions and corporate events.
Further information on carbon offsetting is provided in section 2.2.5 b (iii) GHG removals and mitigation
projects.
Regarding the list of significant monetary amounts of CapEx and OpEx needed for the actions carried out and
planned, the Group is not required under Commission Delegated Regulation (EU) 2021/2178 to draw up a
CapEx plan, and the key performance indicators required by this regulation can be found in this report in
section 2.1 EU Taxonomy information. Moreover, no significant amounts of OpEx or CapEx have been found
to exist in this regard. In 2025, work will be carried out to update the Climate Change Action Plan, which will
include CapEx and OpEx indicators for each material activity, for which the appropriate control and monitoring
methodology will be put in place.
11.2.2.4 Metrics and targets
a. Targets related to climate change mitigation and adaptation. E1-4 / MDR-T
Redeia has pledged to achieve zero net greenhouse gas (GHG) emissions along its entire value chain by
2050. The criterion for setting emission reduction targets is alignment with the Paris Agreement. This
commitment is consistent with achieving global Net Zero and limiting global warming to 1.5 ºC, as well as with
Redeia's own corporate policies.
The targets for 2050 have been endorsed by the Science Based Targets initiative (SBTi):
•
90% reduction in Scope 1 and 2 emissions with respect to 2019.
•
90% reduction in Scope 3 emissions with respect to 2019.
•
100% offsetting of all residual emissions
To make further progress towards the long-term objectives, the Group has also set itself the following short-
and medium-term objectives:
Targets for 2030 (approved by SBTi):
•
55% reduction in Scope 1 and 2 emissions with respect to 2019.
•
28% reduction in Scope 3 emissions with respect to 2019.
•
Suppliers accounting for two thirds of supply chain emissions must have SBTi-approved science-based
targets in place for 2026.
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117
Targets for 2025 (included in the 2023-2025 sustainability plan)
•
30% reduction in Scope 1 and 2 emissions with respect to 2019.
•
100% offsetting of all Scope 1 emissions that cannot otherwise be reduced, from 2022 onward.
Redeia has pledged to offset 100% of its direct emissions that cannot otherwise be reduced until 2025 and
from 2026 onwards, progressively increasing this offsetting until all residual emissions are ultimately offset by
2050. This pledge is in addition to its emission reduction commitments.
While Redeia's stakeholders have not been involved in the process of setting these targets, their views and
concerns expressed in other ways have been listened to. To give an example, the targets have been defined
according to SBTi criteria, as indeed requested by several major investors and rating agencies.
Relevant information on targets, progress towards targets, main reduction measures and reductions achieved,
as well as indicators of energy consumption and emissions intensity (emissions/turnover and
emissions/energy transported), are publicly disclosed in the Sustainability Report and can also be found on
the Group's website.
Redeia's GHG inventory is verified by an independent third party according to ISAE 3410, specifying Scopes
1, 2 and all applicable categories of Scope 3 emissions.
The Company has identified various decarbonisation levers for achieving its reduction targets (described in
E1-1 and E1-3). Their expected contribution, for the 2030 horizon, is set out below:
Greenhouse gas emissions (tCO2eq)
2015
2019
Expected
emissions –
BAU
Expected
reductions by
lever
2030 targets
SF6 emissions
33,733
22,690
36,450
11,150
25,300
Use of air conditioning
840
975
1,000
300
700
Fleet vehicles
2,124
1,845
1,500
600
900
Power generators
182
321
500
200
300
Heating
0.00
232
250
250
0
Associated with electricity consumption
5,441
1,238
N/A
1,038
200
Arising from transmission losses
1,135,791
791,543
N/A
450,463
341,080
Total emissions (Scopes 1 and 2)
1,178,111
818,844
368,480
Scope 1: The base year set for SF6 emission reductions is 2015, as the most significant reduction actions were taken over the 2015-2020 period. While
further actions were taken from 2020 onwards, their impact is expected to be lower given the increase in the installed SF6 fleet and the fact that the
switchgear is ageing (both circumstances that significantly increase the probability of leakage). The reductions expected to be achieved from the steps
taken to reduce Scope 1 emissions have been estimated considering the expected trend in emissions, largely due to the increase in the number of
assets and the fact that the Company's business has grown.
Base year
2015
Base year
2019
Value year
2024
2025 target
2030 target
2050 target
SF6 emissions (tCO₂eq)
A
33,733
-
22,834
26,143
25,300
-
Scope 1 emissions (tCO₂eq)
A, B, C, D
36,879
-
25,992
28,581
27,659
-
Emissions associated with
electricity consumption (tCO₂eq)
B, C
5,441
-
249
-
544.1
0
% of renewable electricity
(procured)
B, C
-
-
96
100
100
100
GHG emissions (tCO₂eq) (Scopes 1
+ 2)
A, B, C, D, E
-
818,844
539,108
573,191
368,480
81,884
Percentage of SBTi-covered
providers
E
-
-
35.3
66
-
-
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Consolidated Management Report for 2024
Scope 3 emissions
E
-
617,456
763,304
-
444,568
61,746
In italics, reference to the specific decarbonisation levers to which each of the targets specified in the table relate, as described in section 2.2.3. c.
Actions and resources in relation to climate change policies: A) Reduction of SF6 emissions; B) Reduction of energy consumption and related emissions;
C) Use of renewable energy; D) Sustainable mobility; E) Reduced emissions due to losses in the transmission grid; F) Reduced emissions associated
with the supply chain and; G) Emission offsets.
A cross-sector emissions pathway is presented below for all diffuse sectors (activities not subject to emissions
trading) and for the ETS sectors (subject to emissions trading), as shown in the 2021-2030 National Energy
and Climate Plan (NECP).
Redeia's own targets are aligned with the industry's wider efforts. The aim is to achieve substantial emission
reductions by 2050, with a full transition to renewable energy planned for 2025. Redeia aims to achieve a 55%
reduction in its Scope 1 and 2 emissions by 2030, thus falling within the range of 39% reductions for diffuse
sectors and 61% for ETS sectors at the state level. Moreover, the goal of using 100% renewable electricity by
2025 will mark a significant step towards decarbonisation and will help it to achieve its emission reduction
targets. This comparison suggests that Redeia's targets are reasonable and in line with national
decarbonisation trends and targets.
Chart 2.2. Targeted emissions pathway to 2030. Historical series (2005 – 2016) and forecast trajectory
b. Metrics related to climate change mitigation and adaptation. MDR-M
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119
i. Energy consumption and mix. E1-5
In 2024, energy consumption amounted to 31,120 MWh. Of this amount, 62.7% came from renewable
sources (without considering the percentage of renewable energies in the electricity mix).
Energy consumption and mix
2024
(1)
Fuel consumption from coal and coal products (MWh)
0 (1)
(2)
Fuel consumption from crude oil and petroleum products (MWh)
10,601.5
(3)
Fuel consumption from natural gas (MWh)
0 (1)
(4)
Fuel consumption from other fossil sources (MWh)
0 (1)
(5)
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources
(MWh)
199 (2)
(6)
Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)
10,801
Share of fossil sources in total energy consumption (%)
35%
(7)
Consumption of fuel from nuclear sources (MWh)
Not material (3)
Share of consumption from nuclear sources in total energy consumption (%)
Not material (3)
(8)
Fuel consumption for renewable sources including biomass (also comprising industrial and
municipal waste of biologic origin), biogas, hydrogen from renewable sources, etc. (MWh)
0 (4)
(9)
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable
sources (MWh)
18,740 (5)
(10)
Consumption of self-generated non-fuel renewable energy (MWh)
806
(11)
Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
19,546
Share of renewable sources in total energy consumption (%)
62.8%
Total energy consumption (MWh) (calculated as the sum of lines 6, and 11)
30,346 (6)
(1) Redeia does not consume fuels directly from coal and coal products, natural gas or other fossil fuel sources.
(2) Of Redeia's total electricity consumption, 2.36% comes directly from the transmission grid and 3.8% is supplied by a distributor without a GoO.
A proportion of this electricity comes from fossil-based sources. Based on a 16% share of fossil sources in the national mix for 2024, the share
of electricity from fossil sources would be less than 1% of total consumption. Therefore, this indicator is considered non-material.
(3) Redeia does not consume fuel directly from nuclear sources. Of Redeia's total electricity consumption, 2.36% comes directly from the
transmission grid and 3.8% is supplied by a distributor without a GoO. A proportion of this electricity comes from nuclear sources. Based on a
20% share of nuclear power in the national mix for 2024, the share of electricity from nuclear sources would be 1.2% of total consumption.
Therefore, this indicator is also considered non-material.
(4) Redeia does not consume biomass-produced fuel directly.
(5) This includes energy procured from renewable sources and the percentage of the national energy mix for electricity procured directly from the
grid in Spain.
(6) This figure differs from the total energy consumed by 778.7 MWh, due to the fact that sections 6 and 11 do not include the proportion of energy
in the mix relating to other generation sources that are not fossil or renewable sources in respect of the 6.1% of energy that Redeia consumes
directly from the grid or that it procures without a GoO.
The following table shows total energy consumption in energy intensity based on net revenue for those
activities carried out in high climate impact sectors.
Energy intensity per net revenue
2024
2023
Change (%)
Total energy consumption of activities in high climate impact sectors per net
revenue in respect of activities in high climate impact sectors (MWh/euros)
0.016
0.014
12
Redeia, given its core business activity under NACE Section D (Electricity, gas, steam and air conditioning
supply), is considered to operate in a high climate impact sector (as defined in Commission Delegated
Regulation (EU) 2022/1288).
The following table shows the reconciliation of net revenue from activities in high climate impact sectors in the
financial statements (under which line item or notes).
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Consolidated Management Report for 2024
Net revenue from activities in high climate impact sectors used to calculate energy intensity
1,479,893
Net revenue (other)
110,780
Total net revenue (consolidated financial statements) *
1,590,673
(*) Total net revenue in 2024 does not include Hispasat.
ii. Gross Scopes 1, 2, 3 and Total GHG emissions. E1-6.
Each year, the Company calculates the inventory of greenhouse gas emissions for Scopes 1, 2 and 3, which
it submits to independent verification by an external party.
Scope 1 emissions cover direct greenhouse gas emissions from stationary and mobile combustion as well as
fugitive emissions. Stationary combustion emissions result from the fuel consumed by back-up generators
and heating systems. The calculation involves multiplying the total fuel consumed/energy generated
(depending on the information available) by an emission factor. For mobile combustion, emissions are
calculated on the basis of fuel consumption or kilometres travelled by the vehicle fleet, car-sharing vehicles
and executive vehicles.
Fugitive emissions include leaks of SF6 gas used at electrical substations, considering both those occurring
during the lifetime of the equipment and those associated with its end-of-life. They also include emissions due
to refrigerant gas leakage from air-conditioning equipment.
Scope 2 emissions represent indirect greenhouse gas emissions from electricity consumption and
transmission losses. These emissions are associated with the energy consumed by the organisation and the
losses incurred when transporting electricity throughout the grid. The methodology involves calculating the
total electricity consumed and applying the relevant emission factors in each case to determine the associated
emissions.
Scope 3 emissions cover a wide range of other indirect emissions, including those from purchased goods and
services, capital goods, fuel and energy life cycle, the transport and distribution of goods, waste management,
business travel, employee commuting, leases and investments. Each category within Scope 3 has a specific
calculation method, which often involves multiplying activity data (such as quantity of goods purchased or
kilometres travelled) by the relevant emission factors in each case. This end-to-end approach ensures that all
significant indirect emissions are accounted for, thus providing a complete picture of the organisation's carbon
footprint.
Emissions from associates and other joint ventures over which there is no operational control are accounted
for using the equity method. Emissions relating to certain Hispasat companies considered non-material
(Hispasat Perú, S.A.C. and Hispasat México, S.A.) have not been counted. Companies of a purely legal or
commercial nature are also out of scope, as no associated emissions have been identified.
Categories not applicable:
•
Downstream transmission and distribution
•
Processing of products sold
•
Use of products sold
•
Treatment of products sold at the end of their useful life
•
Franchises
Significant assumptions or hypotheses:
•
Approaches and assumptions considered material are those relating to the calculation of Scope 3
emissions, more precisely categories 1 and 2. A significant portion of these emissions are calculated by
applying an emission factor based on economic data according to the type of supply (tCO₂eq/euro). This
methodology involves a high degree of uncertainty, and so Redeia is working to increase the volume of
direct information provided by its suppliers to be able to calculate these categories more reliably. (43.17%
of information was reported directly in 2024).
Consolidated Management Report for 2024
121
Emission factors:
•
OECC: Oficina Española de Cambio Climático – Spanish Climate Change Office
•
DEFRA: Department for Environment, Food and Rural Affairs in the United Kingdom.
•
GWP: Published in the Sixth Assessment Report of the IPCC
Retrospective
Milestones and target years
Base year
Comparative
2023
2024
%
2024 /
2023
2025
2030
(2050)
Annual %
target / Base
year
Scope 1 GHG emissions*
Gross Scope 1 GHG
emissions (tCO2eq)
36,879 (1)
28,670
25,992
-9.4
28,581
27,659
N/A
25
Percentage of Scope 1
GHG emissions from
regulated emission trading
schemes (%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Scope 2 GHG emissions*
Gross location-based Scope 2
GHG emissions (tCO2eq)
N/A
594,320
538,909
-9.3
N/A
N/A
N/A
N/A
Gross market-based Scope 2
GHG emissions (tCO2eq)
792,781
591,970
513,116
-13.3
-
340,821
N/A
57 (3)
Significant Scope 3 GHG emissions*
Total gross indirect (Scope 3)
GHG emissions (tCO2eq)
617,457
719,510
763,304.
5
6
N/A
444,568
61,746
28/90
1 Purchased goods and
services
268,836.5
363,427
479,909
32.1
-
-
-
-
[Optional sub-category: Cloud
computing and data centre
services
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2 Capital goods
319,485
278,715
150,911
-45.9
-
-
-
-
3 Fuel and energy-related
activities
Activities (not included in
Scope1 or Scope 2)
675
1,301
620
-52.4
-
-
-
-
4 Upstream transportation and
distribution
2,093
1,096
1,295
18.2
-
-
-
-
5 Waste generated in
operations
193
110
32
-71
-
-
-
-
6 Business travels
3,477
1,765
2,505
41.9
-
-
-
-
7 Employee commuting
5,317
2,850
2,229.5
-21.8
-
-
-
-
8 Upstream leased assets
39
10,361
10,387
0.3
-
-
-
-
9 Transportation and
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
10 Processing of sold
products
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
11 Use of sold products
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
12 End-of-life treatment of
sold products
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
13 Downstream leased assets
N/A
0
0
0
-
-
-
-
14 Franchises
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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Consolidated Management Report for 2024
15 Investments
17,341
59,885
115,416
92.7
-
-
-
-
Total GHG emissions
Total GHG emissions
(location-based) (tCO2eq)
N/A
1,343,400
1,328,
220
-1.13
N/A
N/A
N/A
Total GHG emissions (market-
based) (tCO2eq)
1,436,301
(2)
1341.050
1,302,4
13
-3
143,630
90
N/A Not applicable or not available
(*) Hispasat's contribution to the figure shown in the table is: Scope 1 emissions: 313 tCO2eq; Scope 2 emissions: 18.5 tCO2eq;
Scope 3 emissions: 13,528 tCO2eq
(1)
Scope 1 emissions for 2015, the base year for Scope 1 targets
(2)
2019 total emissions: the base year for the Scopes 1+2 and Scope 3 targets is 2019
(3)
The percentage reduction is the result of considering the Scope 1+2 emission reduction target and the Scope 1 emission
reduction target (this percentage has not been defined as a specific target)
Emissions intensity
Emissions intensity per net revenue
2024
2023
Change (%)
Total GHG emissions (location-based) per net revenue (tCO2eq/thousand euros)
0.824
0.651
0.027
Total GHG emissions (market-based) per net revenue (tCO2eq/ thousand euros)
0.808
0.650
0.024
Note: The 2024 data (total emissions and revenues) do not include Hispasat.
The table shows the reconciliation of the net revenue used to calculate GHG intensity to the relevant line item
or notes in the financial statements:
Net revenue used to calculate GHG intensity
1,594,204
Net revenue (other)
1,594,204
Total net revenue (consolidated financial statements)
1,594,204
Note: The 2024 data (total emissions and revenues) do not include Hispasat
iii. GHG removals and GHG mitigation projects financed through carbon credits. E1-7
Aside from the measures in place to reduce emissions and minimise the Group's carbon footprint, additional
carbon offsetting actions are carried out. As part of its strategy to move towards climate neutrality, Redeia has
pledged to offset all direct emissions it cannot otherwise reduce.
The Company currently offsets 100% of Scope 1 emissions until 2025, with offsets progressively increasing
to other scopes from 2026 to 2050. The 2050 target is to offset all residual emissions.
Offsets are currently carried out in two ways:
•
Development of offset projects (Nature-based Solutions – NbS). The Company operates the Redeia forest
project. In this project the offsets relate to the emission removals that occur during the lifetime of the trees
and shrubs planted there. Removal projects are recorded under the removal projects section of the
Spanish Climate Change Office (MITERD) register. Aside from the offsets recognised by the office at the
time of registration, it is envisioned that further removals will be recognised over the 30 to 50 years of the
life of each project, depending on the course it takes. In 2024, a total of four forests were recorded: Nieva
(Orense), Gamalleira (Lugo), Las Hormazas (Burgos) and Hoyos del Espino (Ávila), with 1,613 tCO₂
available at the start (recorded) and a total of 8,873 tCO₂ in expected removals over 50 years.
•
Purchasing emission allowances: the Company has acquired 25,000 VCUs (Verified Carbon Units)
relating to three projects: landfill gas capture in Chile (Gold Standard assurance); reforestation in Vichada,
Colombia (Gold Standard assurance) and Envira, deforestation avoided, Brazil (VCS assurance).
These actions combined were enough to offset all (100%) Scope 1 emissions in 2024, as well as the emissions
associated with Redeia's corporate events (General Shareholders' Meeting and Sustainability Workshops).
Consolidated Management Report for 2024
123
Removals
2024
Redeia forest (tCO2eq)
1,613
Total GHG removals from own operations (tCO22)
1,613
Capture of landfill gas (LFG)
9,000
Afforestation, reforestation, and revegetation (ARR)
5,000
Deforestation avoided (REDD+)
11,000
Total GHG removals in the upstream and downstream value chain (tCO2)
25,000
Carbon credits cancelled in the reporting year
2024
Total (tCO2eq)
26,613
Proportion of removal projects (carbon removal) (%)
25
Proportion of reduction projects (avoided emissions) (%)
75
OECC recorded (%)
6
Gold Standard (%)
52.6
VCS (%)
41.4
Share from projects within the EU (%)
6
iv. Internal carbon pricing scheme. E1-8
Redeia does not produce electricity and none of its facilities are subject to the EU Emissions Trading Scheme
(EU-ETS). The use of the internal carbon price is a voluntary tool that responds to stakeholder expectations
and helps the Company make progress towards its emission reduction targets.
The carbon price is mainly used as an internal price. Redeia's roadmap towards carbon neutrality includes,
in addition to emission reduction targets, a 100% offset target for Scope 1 emissions in the short term. The
cost of voluntary emissions offsetting is shared between the various organisational units in proportion to the
emissions produced by each of them, thus functioning as an emissions penalty or levy. As the offsetting is
mainly done through the Redeia Forest project and by purchasing carbon credits on the voluntary market, the
internal carbon price is set considering the cost of both actions. The price is reviewed annually.
The internal price for 2024 has been set at €11.82 per tCO₂eq.
Redeia also uses a "shadow price" of carbon when making certain decisions related to low-carbon
technologies or the promotion of best practices in different projects. The aim is to extend this practice to a
larger number of projects and decision-making within the Company. In this case, carbon pricing is carried out
on a project-by-project basis: use of carbon prices published by different agencies, carbon market prices,
fluorinated gas tax prices (for projects involving this technology), etc.
The internal carbon price applies to 100% of Scope 1 emissions. The application to Scope 2 and 3 emissions
is not considered material at this stage.
11.2.3 ESRS E4 – BIODIVERSITY AND ECOSYSTEMS
11.2.3.1 Strategy
a. Transition plan and consideration of biodiversity and ecosystems in strategy and business
model. E4-1
The deployment of the electricity transmission and telecommunications infrastructure needed to carry out the
energy, ecological and digital transition inevitably entails an interaction with nature and, as a result, generates
impacts, dependencies, risks and opportunities in two ways: from the company to the natural environment,
and vice versa, i.e. from nature to Redeia.
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Consolidated Management Report for 2024
To carry out its mission, Redeia needs to integrate its operations into the natural environment, both onshore
and offshore, and consume natural resources, predominantly through its supply chain. In tandem with this,
the Company's activities are not immune to what is happening in nature, nor to the effects of climate change
or the loss of biodiversity, which can generate risks for the business.
The Company has been working for years to come up with a sustainable business model, with biodiversity as
one of the cornerstones of its business strategy. Aware of the risks associated with biodiversity loss, Redeia
focuses its activities on achieving a positive impact by applying the mitigation hierarchy. Biodiversity has
always been a priority concern as part of the Company's environmental management efforts and a key factor
shaping the Group's strategy.
Redeia's awareness of its impact on nature has led it to establish and update, over time, robust and concrete
commitments, both in the fight against climate change, in order to achieve carbon neutrality, and in the
protection and conservation of biodiversity, in order to reduce biodiversity loss and generate a positive impact.
In line with these, it has also embraced a specific commitment to protect vegetation and combat deforestation
when carrying on its activities and in relation to those of its supply chain.
More precisely, the commitment to biodiversity includes the aim of generating a positive impact on
biodiversity in those regions where the Company operates by 2030; a challenge that is in line with the
sustainability objective of generating a net positive impact on the natural capital located in and around the
Group's new facilities by 2030.
In line with this commitment, Redeia has defined a series of biodiversity framework objectives in its
Sustainability Plan, with an interim horizon of 2025 and aligned with the 2030 objective of achieving a positive
impact on biodiversity:
•
Measuring and valuing the impact by implementing a system of accounting for and valuing the natural
capital present in biodiversity.
•
Identifying and assessing biodiversity-related risks and opportunities.
•
Protection and restoration of habitats in protected areas or areas of high biodiversity value.
•
Recovery and conservation of vulnerable and endangered species.
•
Eradication of invasive species associated with electricity transmission infrastructure.
•
Electricity infrastructure as a reservoir of biodiversity.
In parallel, Redeia is working on an approach aligned with the guidelines of the TNFD (Taskforce on Nature-
related Financial Disclosures) and the SBTN (Science Based Targets Network) to identify and assess the
Company's impacts, dependencies, risks and opportunities on biodiversity in order to respond to the
requirements and demands imposed by the various reporting frameworks and sustainability indices.
Biodiversity and ecosystem-related impacts, dependencies, risks and opportunities
Redeia has conducted an initial analysis of the importance of the various businesses in terms of their
interaction with nature, using sectoral reference tools such as ENCORE (Exploring Natural Capital
Opportunities, Risks and Exposure) and the SBTN Materiality Tool. The results show that it is the electricity
transmission business (Red Eléctrica and Redinter) that has the greatest potential interaction with
biodiversity and ecosystems in its direct activities. This also happens to be the Company's main business in
terms of revenue.
On this business, and following TNFD's LEAP (Locate-Evaluate-Assess-Prepare) methodology, the Company
has carried out an exhaustive and expert analysis of the relationship between technologies and activities with
each of the drivers of impact and/or ecosystem services. This exercise produced a matrix showing the various
impacts and dependencies, from which the risks and opportunities arising from the activity have been
obtained.
The Company completed the exercise by identifying priority ecosystem services in terms of materiality of
impact.
Consolidated Management Report for 2024
125
These impacts and dependencies have led Redeia to adapt its strategy and business model to ensure long-
term sustainability, minimising negative impacts to make a positive contribution to biodiversity and
ecosystems.
Impacts
Impact
Position in
the value
chain
Positive
/
Negative
Current /
Potential
Time
horizon (*)
Current/anticipated
effects on the
business model, value
chain, strategy and
decision-making
How the
impacts
affect people
and the
environment
How the
impact
interacts with
the strategy
and business
model
Link between
impacts and
business
activities and
relationships
Assessment of the
resilience of the
strategy and
business model
regarding its
capacity to address
material impacts
Land-use
change that
can trigger
change in
the
vegetation
cover and
erosive
processes
Own
operations
N
Current
S
The impacts on the
business model may be
legal or reputational.
In response to these
impacts, Redeia avoids
areas rich in biodiversity
throughout the life cycle
of the facilities, treating
this as a priority criterion
when defining the
location of the facilities,
both in the planning
phase of the network or
grid and when defining
each project. In the case
of substations, the
criterion is minimising
the space required,
which is key to
mitigating this type of
impact. Moreover,
different construction
techniques are used to
minimise earthworks
and land occupation
and/or soil loss, such as
hoisting with a boom,
laying by hand, carrying
out work with
helicopters and drones
or recovering and
reserving topsoil for
subsequent reuse. The
affected areas are also
recovered by restoring
slopes, sowing and
planting, and selective
pruning, avoiding the
felling of hardwoods and
plant formations of note.
Land use
change can
lead to
biodiversity
loss and
erosion.
As part of its
strategy,
Redeia focuses
on avoiding
and minimising
negative
impacts by
selecting the
right locations
for its
infrastructure
and taking
preventive and
corrective
action during
their
construction
and
maintenance.
The activity
associated with
the impact of
land use change
is power
transmission.
Redeia carries out
impact management
by following the
mitigation hierarchy
approach. During the
design phase, Redeia
avoids areas rich in
biodiversity and
minimises the space
taken up by its
infrastructure.
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Consolidated Management Report for 2024
GHG
emissions -
SF6gas
Own
operations
N
Current
S
The impacts on the
business model may be
legal or reputational.
In response to these
impacts, Redeia
reduces SF6 emissions
by controlling and
reducing leaks,
renewing switchgear
and taking steps to limit
the growth in installed
gas.
SF6 gas has a
high global
warming
potential,
contributing to
climate
change.
As part of its
strategy,
Redeia
complies
strictly with
minimum safety
distances
between
vegetation and
infrastructure
by maintaining
firebreaks
around its
power lines and
its substations
in forest
environments.
The activity
associated with
the impact of
land use change
is power
transmission.
Redeia has several
ongoing SF6 gas
reduction initiatives
that have been
stepped up as part of
its Climate Change
Action Plan. Redeia
works alongside
public administrative
bodies and other
entities to find
solutions for
controlling and
reducing these
emissions within the
framework of the
voluntary agreement
signed in May 2015
between the Ministry
for Ecological
Transition and the
Demographic
Challenge,
manufacturers and
suppliers of electrical
equipment that use
SF6, electricity
transmission and
distribution
companies and waste
managers of this gas
and the equipment
that contains it.
Accidental
fires
Own
operations
N
Current
S
The impacts on the
business model may be
legal or reputational.
In response to these
impacts, Redeia has
optimised its strategy for
treating vegetation. It
unlocks synergies with
fire prevention efforts
and helps to offset the
environmental impacts
(VEGETA) by carrying
out preventive clearing
in forest areas with a
high fire hazard and
removing scrubland
associated with high
density and height
grasses. It also has a
forest fire prevention
plan (2023-2025) and
conducts regular
inspections of power
lines and of adjacent
areas and perimeter
strips around
substations in forest
environments.
Work is halted during
periods or situations of
high fire risk and part of
the risk is transferred by
means of a civil liability
insurance policy for
possible damage
caused to third parties.
The Company requires
its own employees and
external personnel to
undergo training in
forest fire prevention
and extinction.
Fires can lead
to biodiversity
loss, species
displacement
and human
damage.
As part of its
strategy,
Redeia
complies
strictly with
minimum safety
distances
between
vegetation and
infrastructure
by maintaining
firebreaks
around its
power lines and
its substations
in forest
environments.
The activity
associated with
the impact of
land use change
is power
transmission.
Redeia continuously
monitors regulatory
changes and sanction
systems regarding fire
generation, carries
out preventive
clearing in forest
areas exposed to the
risk of wildfires, and
has early fire
detection systems
featuring IoT
technology
(PRODINT) and early
collision detection
(ALERION project). It
also provides its
employees with
resources and
specific training in
forest fire prevention
and conducts
research projects and
fire prevention plans.
Consolidated Management Report for 2024
127
Bird
collisions
with ground
wires
Own
operations
N
Current
S
The impacts on the
business model can be
legal (sanctions) or
reputational.
In response to these
impacts, Redeia has a
multi-year bird diverter
plan in place for
overhead lines, which
involves the installation
of bird guards and visual
markers in priority areas
for birds. This plan has
been drawn up on the
basis of the ‘Birds and
power lines: mapping of
bird flyways' project,
thanks to which a list of
focal species sensitive
to collision has been
prepared and sensitivity
maps (areas where
these species can be
found) and risk maps
(sensitive areas where
there are also factors
that influence the
probability of accidents
occurring) have been
drawn up. The plan
prioritises actions on
those sections of the
line posing the greatest
threat to birdlife. Work
is also under way to
develop tools for the
early detection of bird
collisions. This measure
aims to ensure proper
handling and
preservation during the
maintenance of the
facilities.
Earth wires
protect power
lines from
lightning
strikes during
storms and
are an
indispensable
element in
ensuring the
smooth
operation of
the electrical
system. The
presence of
these cables
in Redeia's
operations can
pose a
significant risk
to birds, as
they may
accidentally
strike them
while flying,
especially in
open areas or
near bird
habitats.
As part of its
strategy,
Redeia pays
close attention
to those areas
where focal
species may be
found when
designing
power lines,
thus allowing it
to minimise the
impact on
birdlife.
Power
transmission is
the activity that
carries the
greatest risk of
avian-power line
collision.
Redeia runs a flyway
project, thanks to
which a list of focal
species sensitive to
collision risk has been
drawn up. A bird
diverter plan has
been drawn up under
this project. Work is
also under way to
develop tools for the
early detection of
avian-power line
collisions.
*Time horizon: S (Short term), M (Medium term), L (Long term).
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Consolidated Management Report for 2024
Risks
Description of the
cause of the risk
Location in
the value
chain
Time
horizon (*)
Current/anticipated effects on the
business model, value chain,
strategy and decision-making
Current financial effects
arising from the risks
Assessment of the resilience of the
strategy and business model
regarding its capacity to address
material impacts
Tightening of bird
protection policies in
Spain and
internationally,
leading to increased
fines and lawsuits
Own
operations
L
The expected effects will be economic
in nature.
In response, Redeia will need to keep
close track of updates to both legal
frameworks and sanctioning systems
in order to meet the new requirements
when reporting information.
Reputational impact, associated
with damage to third parties or
the environment
In the long term, the Company will have
to anticipate the economic effects of
these sanctions through impact
avoidance, prior studies and policy
development, technological adaptation,
and provisioning funds to meet the costs
of sanctions.
Damage to overhead
power lines caused
by extreme winds
Own
operations &
Customers
and end-
users
S, M, L
The likely impacts will be damage to
infrastructure, increased maintenance
costs, adverse effects on the supply of
electricity supply, and reputational
damage due to power outages.
In response, Redeia takes the
following mitigation actions: projects
to improve and reinforce transmission
grid facilities; MANINT project to
optimise the management of
transmission grid assets; contingency
plans; and insurance policies.
Higher maintenance costs,
disruption to the electricity
supply and reputational impact
associated with power outages
Redeia takes positive action to address
this type of risk: early detection systems;
research projects and fire prevention
plans; improvements in both materials
and infrastructure; maintenance and
repair; contingency plans for extreme
weather events; insurance policies.
Fire damage to
power lines and
substations (external
events)
Own
operations &
Customers
and end-
users
S, M, L
The likely impacts will be damage to
infrastructure, increased maintenance
costs, adverse effects on the supply of
electricity supply, and reputational
damage due to power outages; and
possible effects on third parties or the
environment in the event of fire.
In response, Redeia pursues the
following mitigating actions: projects
to improve and strengthen
transmission grid facilities; felling
plans (VEGETA); contingency plans;
and insurance policies.
Increased maintenance costs,
disruption to electricity supply
and reputational impact
associated with power outages.
Damage caused to third parties
or the environment due to fire
Redeia takes positive action to address
this type of risk: early detection systems;
research projects and fire prevention
plans; improvements in both materials
and infrastructure; maintenance and
repair; contingency plans for extreme
weather events; insurance policies.
Reputational
damage as a result
of failing to meet
society's
expectations
regarding
biodiversity
protection (and
sensitivity around
Own
operations
S, M, L
The expected impacts will be
reputational in nature.
In response, Redeia pursues the
following mitigating actions: projects
to improve and strengthen
transmission grid facilities; felling
plans (VEGETA); contingency plans;
and insurance policies.
Reputational impact, associated
with damage to third parties or
the environment
Redeia takes positive action to address
this type of risk: early detection systems;
research projects and fire prevention
plans; improvements in both materials
and infrastructure; maintenance and
repair; contingency plans for extreme
weather events; insurance policies.
*Time horizon: S (Short term), M (Medium term), L (Long term).
Resilience of the strategy and business model
Redeia has conducted an exhaustive assessment of the resilience of its strategy and business model to
biodiversity and ecosystems-related physical, transition and systemic risks.
The scope of the resilience analysis is limited to direct power transmission activities in Spain, Peru and Chile.
While an initial analysis of upstream materiality for Redeia's businesses has been carried out, there is no
specific and reliable information on supply chain impacts and dependencies for Redeia's businesses. Derived
risks may arise from the need to supply raw materials, other materials and equipment through the supply
chain. This demand may have an indirect impact on biodiversity by the Group on a more global scale in both
the energy transmission and satellite telecommunications and telecommunications businesses. For these
reasons, derived risks have not been considered in this analysis. However, further down the line the
Consolidated Management Report for 2024
129
Company will address the extent to which these impacts and dependencies in the value chain are significant,
and even whether they carry risks or opportunities that need to be addressed in the short, medium or long
term.
As an electricity transmission agent, Redeia's main activity is the transmission of electricity from the generating
facilities to the distribution grids and end consumers. The downstream activities of the Company's value chain
involve the actual consumption of electricity by distributors and end consumers alike. Such a broad and
overwhelming scope makes it impossible to reliably identify downstream biodiversity impacts, dependencies,
risks and opportunities.
Redeia has implemented a comprehensive analysis of risks related to biodiversity and ecosystems. This
analysis is based on the LEAP methodology of the Taskforce on Nature-related Financial Disclosures (TNFD),
which involves mapping key activities, assessing dependencies and impacts, analysing risks and
opportunities, and preparing to respond to these risks and opportunities. Key assumptions include the
identification of impact drivers such as land use change, climate change, resource exploitation, pollution and
biodiversity impacts. These assumptions are based on internal information and expert judgement, further
supplemented by data from external sources.
The main physical risks identified include damage to power lines caused by extreme winds and damage to
lines and substations due to fire (external events). These risks endure over time because nature is slow to
recover from the effects of climate change.
Looking at transition risks, birdlife protection regulations may be toughened at both a national and
international level, leading to an increase in sanctions and litigation, and a possible loss of reputation if the
Company is unable to live up to societal expectations in terms of biodiversity conservation and sensitivity to
the threat of wildfires.
•
The first risk concerns damage to power lines due to extreme wind conditions. This risk also arises in
relation to the Company's own activities and affects customers. The increased likelihood of extreme
winds, caused by climate change coupled with a possible degradation of the ecosystem service of storm
mitigation, can lead to line damage and even the collapse of sections of lines, potentially affecting the
operation of the system and generating costs due to repair work and/or possible supply outages. It
therefore negatively affects the social and business ecosystem by pushing up operational costs and
affecting the continuity of electricity supply.
•
The second risk relates to damage caused to lines and substations due to fires (external events).
Temperature changes, dry soil and water scarcity due to climate change lead to increased desiccation of
vegetation, which, coupled with a decline in local climate regulation due to biodiversity degradation,
increases the risk of wildfire that could severely affect facilities (substations and lines) and threaten the
operation of the system. This risk affects both own operations and customers and users. Fires affecting
the facilities may increase maintenance costs and affect the supply of electricity, thus tarnishing Redeia's
reputation due to the resulting outage.
•
The third risk refers to the loss of reputation due to failure to live up to societal expectations in protecting
biodiversity and being sensitive to the risk of wildfire (internal events) that could result from Redeia's own
operations. This risk can have a negative impact on the Company's reputation if damage is caused to
third parties or the natural environment. It affects regulatory bodies, the economic-financial ecosystem
and the social ecosystem by damaging the Company's reputation and its relationship with society and
stakeholders.
•
The fourth risk relates to a toughening of bird protection regulations both nationally and
internationally, leading to increased sanctions and litigation. The impact stems from the risk of birdlife
colliding with power lines. This risk arises from own operations and can have a negative impact on the
Company's reputation. It affects regulatory bodies, the financial-economic ecosystem and the social
ecosystem.
No systemic risks from Redeia's direct operations have been identified, as the material impacts and
dependencies will not lead to the collapse of ecosystems in the short or medium term, or to the extinction of
species or depletion of natural resources.
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Consolidated Management Report for 2024
Redeia has also analysed its exposure to the risks identified and gauged the resilience of its business strategy,
based on a current scenario (2024 and 2025) and a future scenario (running from 2026 to 2030).
The exploratory scenario analysis carried out follows the indications of the TNFD. A number of plausible
scenarios or futures have been defined on the basis of certain regulatory contexts (European Biodiversity
Strategy 2030, the Kunming-Montreal Global Biodiversity Framework, the EU Nature Restoration Act and the
Paris Agreement) and the scenarios defined by the TNFD, based on the combination of critical uncertainties
related to ecosystem degradation and the alignment of market and non-market forces.
This analysis has been carried out as follows:
•
Identifying relevant aspects such as time horizons and legislative compliance determining plausible
futures.
•
Positioning the risks accordingly on the pillars of uncertainty.
•
Applying scenario narratives by trying to assess what happens to these risks under the most plausible
scenarios, considering the time horizons and the approach taken.
•
Identifying high-level decisions for the Company.
The resilience analysis shows that, while there are significant challenges, Redeia's strategy and business
model are resilient and able to adapt to changes in biodiversity and ecosystems.
Sensitive areas for intervention have been identified for the development of specific action plans. These
include improving risk management related to extreme weather events and adapting infrastructure to minimise
the negative impacts on biodiversity.
Redeia has listened to stakeholder expectations when carrying out the resilience assessment process,
including internal and external experts in the process of identifying and assessing impacts and dependencies.
The Company also considered information from recognised sustainability assessment agencies (ENCORE or
SBTN Materiality Tool) and has aligned its practices with standard frameworks such as the CSRD, Global
Reporting Initiative (GRI), and the TNFD.
b. Material impacts, risks and opportunities and their interaction with strategy and business
model. ESRS 2 / SBM-3
Redeia has updated its list of identified impacts, dependencies, risks and opportunities following the LEAP
(Locate, Assess, Analyse and Prepare) methodology of the TNFD.
This process includes the location (L) of key activities or sites of relative importance with respect to nature.
As mentioned earlier, the Company's activities/businesses that affect and depend on ecosystem services were
first identified. The analysis conducted includes high-level identification through sectoral benchmarking tools
such as ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) and the SBTN Materiality
Tool. This analysis revealed that it is the electricity transmission business (Red Eléctrica and Redinter)
that has the greatest potential interaction with biodiversity and ecosystems in its direct activities, and this also
happens to be the Company's main business in terms of turnover.
To determine the interaction of the energy transmission business, Redeia carries out site identification
processes in sensitive areas and flags priority locations, based on a number of assumptions:
•
Operational control: the location analysis is performed on those businesses/activities over which the
Company has full operational control. This includes the facilities of the company TEN.
•
Assessment of activities: the activities that could apply are assessed. For each type of facility (overhead
line, underground line, submarine cable and substation); in other words, the construction and operation of
the facilities.
•
Infrastructure in non-urban areas: according to the definition of nature provided by the TNFD, all
facilities or sections located in urban ecosystems have been excluded from the location analysis, given
that the alteration of this type of ecosystems is very high and the provision of ecosystem services in these
Consolidated Management Report for 2024
131
areas is very low. The analysis is confined to all infrastructure located in non-urban areas that meet the
above criteria.
•
Exclusion of energy storage facilities: energy transmission facilities related to storage systems (i.e.
pumping installations and batteries) have been excluded from the analysis for the time being.
Next, the Company identified the area of occupation (area where the direct activity of the organisation takes
place, including those areas in which some type of activity is carried out) and the area of influence (area
outside the areas of occupation in which the natural environment may sustain some impact due to the
organisation's activity) of the various facilities used for the transport of energy. This was carried out by
conducting a geospatial analysis of both types of areas. This information was first combined with the data
source provided by the European Space Agency (ESA) known as ESA World Cover (https://esa-
worldcover.org/en), enabling Redeia to determine over which land use categories its electric power
transmission activity takes place (Note: the additional information included in the links goes beyond EY's
scope of verification). Subsequently, the Company analysed sensitive locations and the sensitivity of the
territories in which it operates, based on the following environmental vectors indicated by the TNFD:
•
Ecosystem integrity: ecosystem integrity means the degree to which the composition, structure and
function of an ecosystem are within the natural range of variation. It is characterised at the landscape
scale, using a suitable assessment area. High-integrity locations are those that may present great
opportunities for safeguarding the stock of environmental assets and maintaining the provision of
ecosystem services, both locally and globally.
•
Importance for biodiversity: if the ecosystem is identified as part of a biodiversity hotspot, protected area
or other internationally recognised area of high biodiversity, the risks associated with loss or deterioration
of nature are higher.
•
Water stress: if the location is an area experiencing water stress where the quantity and/or quality of
available water is deteriorating, the risks will be greater in areas where there is a higher water demand.
The environmental variable related to water stress will not be counted within the prioritisation criteria for
facilities. This is because there is no water consumption or potential impact on water resources during the
production process.
•
Provision of ecosystem services: if the area is important for the provision of ecosystem services,
including the presence of areas managed by local communities or indigenous peoples, the risks arising
from their deterioration will be more significant.
For the analysis, geographic information layers are selected to build a map of the ecological sensitivity of the
territory by cross-referencing them:
•
UNEP-WCMC
and
IUCN.
The
World
Database
on
Protected
Areas
(WDPA)
(https://www.protectedplanet.net/en/thematic-areas/wdpa?tab=WDPA): provides information on protected
areas on a global scale. Additional sources of information on protected sites at regional and/or national
level are used to bolster the information.
•
Key Biodiversity Areas (KBA) (https://www.keybiodiversityareas.org/): provides information on areas of
high biodiversity importance. In addition, and as useful contextual information for the analysis, this
cartographic package includes information from the IUCN (International Union for Conservation of Nature)
regarding species and their threat category, screening those species that have been detected in the pre-
materiality phase as presenting some kind of material interaction with the technologies.
•
World
Resources
Institute.
Aqueduct
Water
Risk
Atlas.
Water
Stress
(https://www.wri.org/applications/aqueduct/water-risk-atlas/): provides information on water stress in terms
of physical quantity of the resource.
•
UNEP-WCMC. Territories and areas conserved by Indigenous Peoples and communities (ICCAs)
(https://www.iccaregistry.org/): provides information on territories conserved by indigenous peoples and
local communities.
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Consolidated Management Report for 2024
•
Food and Agriculture Organization of the United Nations (FAO). Globally Important Agricultural
Heritage Systems (GIAHS) (https://www.fao.org/giahs/giahsaroundtheworld/en/): provides information
on the existence of areas of special interest for agriculture, either because of the provision of key
agricultural resources or because of their existence value.
Note: Any additional information included in the links goes beyond EY's scope of verification.
Moreover, as contextual information, the facilities have been cross-referenced with information from the IUCN
Red List of Protected Species. The territory is therefore classified on the basis of its sensitivity. Finally, this
information is cross-checked with the information on the facilities, which are classified according to four levels
of priority:
•
Highly sensitive facilities: facilities where both the area of occupancy and the area of influence are
located in ecologically sensitive areas.
•
Priority sensitive facilities: facilities where only the area of occupancy is located in an ecologically
sensitive area.
•
Potentially sensitive facilities: facilities where only the area of influence is located in an ecologically
sensitive area.
•
Non-sensitive facilities: facilities that are not located in ecologically sensitive areas, neither in their area
of occupancy nor in their area of influence.
Results for facilities in sensitive areas
Total facilities (*) (Total Redeia – power transmission)
(*) Based on existing facilities recorded in the facilities database as of March 2024. According to the definition of nature provided by the TNFD, all
facilities or sections located in urban ecosystems have been excluded from the analysis, given that the alteration of this type of ecosystems is very
high and, therefore, the provision of ecosystem services is very low. The exclusion of facilities in urban areas is carried out using various sources of
information, depending on the country where the facility is located.
Facilities in sensitive areas (Total Redeia – electricity transmission)
(*) Installations where both the area of occupancy and the area of influence are located in ecologically sensitive areas.
Overhead lines
(no. of spans)
Underground lines
Submarine lines (km)
Substations (units)
No. lines
km
Total
88,026
2,633
898
1,579
733
Overhead lines
(no. of spans)
Underground lines
(no. lines-km)
Submarine lines (km)
Substations
(units)
Total (%)
15,352
112
42
821
46
% of facilities to total
17%
4%
5%
52%
6%
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133
An installation (overhead span, kilometre of underground or submarine line and/or substation) is considered
to be in a sensitive area when both its zone of occupancy (area where the organisation's activity takes
place, including those where any kind of work takes place) and area of influence (area outside the areas of
occupancy in which the natural environment may be affected by the organisation's activity) overlap with the
organisation's activities.
The following areas are considered sensitive:
•
Area included in WDPA + Area in KBA + Area in GIAHs and/or ICCAs.
•
Area included in WDPA + Area in KBA.
Information available at:
•
UNEP-WCMC
and
IUCN.
The
World
Database
on
Protected
Areas
(WDPA)
(2024):
https://www.protectedplanet.net/en/thematic-areas/wdpa?tab=WDPA
•
Key Biodiversity Areas (KBA) (2023): https://www.keybiodiversityareas.org/
•
Food and Agriculture Organization of the United Nations (FAO). Globally Important Agricultural Heritage
Systems (GIAHS) (2023): https://www.fao.org/giahs/giahsaroundtheworld/en/
•
UNEP-WCMC. Territories and areas conserved by Indigenous Peoples and communities (ICCAs) (2023):
https://www.iccaregistry.org/
Note: Any additional information included in the links goes beyond EY's scope of verification.
Area included in WDPA
Redeia has so far identified areas where its assets and direct activities interact with nature in ecologically
sensitive areas. It is working to be able to determine and break down, in the future, which of its facilities located
in sensitive areas are considered priority facilities, based on whether the activities carried out there have a
negative impact by causing deterioration of natural and species habitats, disturbing species, and undermining
the very reasons why the area was designated as protected in the first place.
Relatively significant impacts related to species status
Redeia has, as regards the electricity transmission business, identified a significant impact related to species
status. The impact is the collision of birdlife with earth wires. These earth wires protect power lines from
lightning strikes during storms and are an essential element in ensuring the smooth operation of the electrical
system. The presence of these cables in Redeia's operations can pose a significant risk to birds, as they may
accidentally strike them while flying, especially in open areas or near bird habitats.
To mitigate this negative impact, the Company has implemented a multi-year bird diverter plan for
overhead lines, which includes the installation of bird guards and visual markers in priority areas for birds.
This plan has been drawn up on the basis of the ‘Birds and power lines: mapping of bird flyways' project,
thanks to which a list of focal species sensitive to collision has been prepared and sensitivity maps (areas
where these species can be found) and risk maps (sensitive areas where there are also factors that influence
the probability of accidents occurring) have been drawn up. The plan prioritises actions on those sections of
the line posing the greatest threat to birdlife.
Work is also under way to develop tools for the early detection of bird collisions. This measure aims to ensure
proper handling and preservation during the maintenance of the facilities.
It is a current impact, with a short-term horizon. The source of information is the IDRO project and the location
of the impact relates to Redeia's own operations. IDRO is the name of the project that has enabled Redeia to
identify the impacts, dependencies, risks and opportunities relating to the natural environment arising from the
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Consolidated Management Report for 2024
activities of the companies that make up the wider group and allows the Company to align itself with the main
requirements of the different indices and reporting frameworks: TNFD, ESRS, GRI, DJSI, SBTN, etc.
The Company discloses information on the number of affected individuals, considering the threat status of the
species as an indicator of the Company's impact on the risk of extinction of local populations.
Material impacts related to ecosystem extent and condition
Redeia has not identified any material negative impacts in relation to land degradation, desertification or soil
sealing in relation to the electricity transmission business. The Company focuses on avoiding and minimising
negative impacts by selecting the right location for its infrastructure and by applying preventive and corrective
measures during their construction and maintenance. This ensures that their activities do not lead to a
significant loss of forest area or impact on deforestation.
Material impacts related to ecosystem services and dependencies on these services
Redeia has not identified any relatively significant negative impacts in relation to ecosystem services and
dependencies on these services when looking at the electricity transmission business.
Material impacts of direct relevance to biodiversity loss
Redeia has identified three impacts related to the direct drivers of biodiversity loss looking at the electricity
transmission business.
The first relates to land use change, which can lead to a change in vegetation cover and erosion processes
due to the construction of substations and overhead lines. These activities can lead to habitat and ecosystem
loss, thus posing a negative impact. To mitigate this impact, Redeia seeks to avoid areas rich in biodiversity
throughout the life cycle of the facilities, treating this as a priority criterion when defining the location of the
facilities, both in the planning phase of the network or grid and when defining each project. In the case of
substations, the criterion is minimising the space required, which is key to mitigating this type of impact.
Moreover, different construction techniques are used to minimise earthworks and land occupation and/or soil
loss, such as hoisting with a boom, laying by hand, carrying out work with helicopters and drones or recovering
and reserving topsoil for subsequent reuse. The affected areas are also recovered by restoring slopes, sowing
and planting, and selective pruning, avoiding the felling of hardwoods and plant formations of note. The impact
materialises in Redeia's own operations, is current and has a short-term horizon. This negative impact mainly
affects the social and business ecosystem.
The second impact relates to accidental fire-starting as a result of non-compliance with the minimum safety
distances between live elements and vegetation. Inadequate construction and maintenance work can also
start accidental fires.
To mitigate this impact, Redeia has optimised its strategy for treating vegetation. It unlocks synergies with fire
prevention efforts and helps to offset the environmental impacts (VEGETA) by carrying out preventive clearing
in forest areas posing a high fire hazard and removing scrubland associated with high density and height
grasses. It also has a forest fire prevention plan (2023-2025) and conducts regular inspections of power
lines and of adjacent areas and perimeter strips around substations in forest environments.
The Company halts work during periods or situations carrying a high fire risk and part of the risk is transferred
by means of a civil liability insurance policy for possible damage caused to third parties. The Company requires
its own employees and external personnel to undergo training in forest fire prevention and extinction. The
impact materialises in Redeia's own operations, is current and has a short-term horizon. This negative impact
mainly affects the social ecosystem.
Last but not least, there is the impact relating to climate change with greenhouse gas (GHG) emissions, with
Redeia's main source of GHG emissions being SF6 gas leaks in its own facilities. To mitigate this impact,
Redeia works to reduce these emissions by controlling and reducing leaks, renewing switchgear and taking
steps to limit the growth in installed gas. The remaining Scope 1 emissions come from fleet vehicles, the use
Consolidated Management Report for 2024
135
of air conditioning and heating in the facilities, as well as backup generators, for which energy consumption
reduction measures are applied, thanks to the increased use of renewable energy and the development of
energy efficiency measures and more sustainable mobility solutions.
The impact materialises in Redeia's own operations, is current and has a long-term horizon. This negative
impact mainly affects the social ecosystem. The Company discloses information about its use of land owing
to the presence of its facilities.
The Company also discloses information about the most significant impacts in terms of loss of biodiversity on
both terrestrial and marine vegetation, especially when they occur in protected natural areas.
It likewise discloses information about its GHG emissions by calculating its carbon footprint.
Impact of operations on endangered species
Certain Redeia facilities are located in areas featuring threatened bird species according to national
catalogues or lists and/or the IUCN Red List. Therefore, the Company's direct operations could have a relative
impact on these species due to the risk of them colliding with the ground cables.
Redeia has identified a set of collision-sensitive focal species selected on the basis of various criteria
including, among others, the degree of threat. Redeia has drawn up sensitivity maps (areas where these
species can be found and which must be considered when defining new line layouts) and risk maps (sensitive
areas where there are also factors that influence the likelihood of accidents occurring). Based on this
information, a multi-year bird diverter Plan for the 2016-2025 horizon has been established, prioritising actions
on those sections of the line with the greatest potential impact on birdlife.
11.2.3.2 Impact, risk and opportunity management
a. Description of processes to identify and assess material biodiversity and ecosystem-
related impacts, risks and opportunities. ESRS 2 IRO-1
Identification and assessment of impacts and dependencies
Redeia has updated its list of identified impacts, dependencies, risks and opportunities following the LEAP
(Locate, Assess, Analyse and Prepare) methodology proposed by the TNFD.
This analysis involves mapping key activities, assessing dependencies and impacts, analysing risks and
opportunities, and preparing to respond to these risks and opportunities. The aim is to identify how the
Company's activities affect and depend on ecosystem services, and also to identify related risks and
opportunities and to develop and establish corporate indicators that will enable Redeia to continuously assess
and monitor the material impacts and changes in ecosystems generated by its activities.
The analysis carried out to determine business materiality includes a high-level identification of upstream
operations. This analysis revealed that it is the electricity transmission business that has the greatest potential
interaction with biodiversity and ecosystems in its direct activities, and this also happens to be the Company's
main business in terms.
The Company then identified the area of occupation (area where the direct activity of the organisation takes
place, including those areas in which some type of activity is carried out) and the area of influence (area
outside the areas of occupation in which the natural environment may sustain some impact due to the
organisation's activity) of the various facilities used for the transport of energy. This was carried out by
conducting a geospatial analysis of both types of areas. Subsequently, the Company analysed sensitive
locations and the sensitivity of the territories in which it operates, based on the environmental drivers indicated
by the TNFD.
•
Ecosystem integrity
•
Importance for biodiversity
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Consolidated Management Report for 2024
•
Water stress
•
Provision of ecosystem services
For the analysis, geographic information layers are selected to build a map of the ecological sensitivity of the
territory by cross-referencing them.
Moreover, as contextual information, the facilities have been cross-referenced with information from the IUCN
Red List of Protected Species.
The territory is therefore classified on the basis of its sensitivity. Next, this information on the sustainability of
the surrounding area was cross-referenced with the information on the facilities, which are classified into one
of four levels of priority:
•
Highly sensitive facilities: facilities where both the area of occupancy and the area of influence are
located in ecologically sensitive areas.
•
Priority sensitive facilities: facilities where only the area of occupancy is located in an ecologically
sensitive area.
•
Potentially sensitive facilities: facilities where only the area of influence is located in an ecologically
sensitive area.
•
Non-sensitive facilities: facilities that are not located in ecologically sensitive areas, neither in their area
of occupancy nor in their area of influence.
Using the SBTN Materiality Tool proposed by TNFD, the actual and potential impacts and dependencies of
the electricity transmission activity were identified. It should be noted that only actual impacts were taken into
account in subsequent phases of the analysis, as the Redeia impact management model considers only the
application of the mitigation hierarchy on this type of impact. The results delivered by the tool were reviewed
in order to obtain a final classification, based on Redeia's expert judgement.
Turning to the dependencies, Redeia considered not only the ecosystem services on which its activities
depend, and which allow for the proper operation of its infrastructure, but also those factors that could prevent
them from working properly.
The prioritisation of impacts and dependencies was carried out on a qualitative basis, by type of infrastructure
and phase of the life cycle. More precisely, the magnitude of impacts and dependencies was assessed in
terms of severity, where the lowest value (value 1) corresponded to very low impacts/dependencies and the
highest value (value 5) to very high impacts/dependencies.
Once the magnitude of the impacts had been identified, for those with very high, high or medium severity, and
following the recommendations of the reference frameworks, the following variables were also assessed:
•
Scope:
◦
The extent of the impact within the infrastructure type itself or for the ecosystem.
◦
Comparison of the relative importance of the impact as a function of the number of facilities per
infrastructure type.
•
Irremediability or degree of irremediability: qualitative assessment of the difficulty of repairing the
damage on biodiversity and ecosystems caused by the activity.
By combining the aspects assessed, together with the magnitude, it is possible to obtain the severity of the
impact by applying the following formula:
𝑺𝒆𝒗𝒆𝒓𝒊𝒕𝒚 𝒐𝒇 𝒊𝒎𝒑𝒂𝒄𝒕 = 𝒔𝒄𝒂𝒍𝒆 ∙ 𝒔𝒄𝒐𝒑𝒆 ∙ 𝒊𝒓𝒓𝒆𝒎𝒆𝒅𝒊𝒂𝒃𝒍𝒆 𝒄𝒉𝒂𝒓𝒂𝒄𝒕𝒆𝒓
In the case of the dependencies, the severity of the impacts corresponds to the magnitude. The values were
ranked on a scale of 1 to 5, according to the following definitions:
•
1: very low dependency. The activity can continue effectively without any significant dependency on
ecosystem services. Technological or process alternatives are readily available and economically viable.
Consolidated Management Report for 2024
137
•
2: while there are some dependencies on ecosystem services, these are minor and can be replaced
relatively easily and at manageable costs. The alternatives may require minor adjustments to existing
operations.
•
3: ecosystem services play an important and regular role in carrying out the activity. Although alternatives
exist for the services used, they may be more costly or less efficient, requiring a balancing exercise
between ecological costs and benefits.
•
4: the operation or production is heavily dependent on one or more ecosystem services that are difficult
to replace and the substitution of which would imply a significant cost or drop in efficiency. The continuity
of ecosystem services is crucial for maintaining the economic and operational viability of the site.
•
5: Ecosystem services are absolutely critical and cannot be replaced. The loss or degradation of these
services would have a devastating and direct impact on the activity and could even render the business
no longer viable.
The assessment of dependencies includes the identification of any ecosystem services that are, or could be,
disturbed. Ecosystem services were identified according to Redeia's expert judgement.
Ecosystem services were identified by relying on the two classification systems proposed by the TNDF and
the CSRD: Common Classification Of Ecosystem Services (CICES), version 5.2 and System of
Environmental-Economic Accounting (SEEA). Moreover, the environmental assets that provide these
ecosystem services were identified following those proposed in the LEAP methodology (Guidance on the
identification and assessment of nature-related issues: The LEAP methodology; page 13).
The ecosystem services that Redeia relies on in its direct operations are predominantly climate regulation
services related to the mitigation of extreme weather events that could affect the supply of energy (local climate
regulation, storm mitigation, flood control), fire protection services, and erosion control services (soil and
sediment retention). Moreover, the electricity transmission activity has an impact on the natural landscape
asset and therefore on the ecosystem services it provides to humans (visual, recreational, spiritual, etc.).
Identification and assessment of risks and opportunities
Based on the impacts and dependencies flagged as priorities, a series of nature-related risks and opportunities
were identified following the classification system proposed by the TNFD and the CSRD.
Risks
With the risks identified, an assessment and prioritisation exercise was carried out in line with the requirements
of the CSRD and the TNFD and adapting the risk assessment methodology of Redeia's Enterprise Risk
Management System. This methodology determines the level of risk by combining the following two variables:
•
The probability of occurrence assesses the likelihood of the impact or dependence materialising into a
risk. It was measured in line with the corporate risk prioritisation methodology.
•
The financial magnitude of the risk is the impact that the materialisation of the risk would have on three
key aspects of the Company's business:
◦
Economic loss: since economic values are not available for nature-related risks, the volume of
business exposed to a given risk was assessed. The calculation looked at the business volumes per
country and the Company's share declared by Redeia, as well as the proportion of priority facilities
with respect to the total number of facilities per country and the percentage that the technology
represents of the total number of technologies present in the country. The formula was applied to
obtain the values:
◦
Reputational loss: the impact of the risk on stakeholders and the Company's reputation was assessed.
◦
Electricity supply: the potential impact of the risk on the supply of electricity was assessed.
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Following the methodology of Redeia's Enterprise Risk Management System, these elements were combined
through the use of a weighted sum to obtain the financial magnitude of the risk.
The combination of probability of occurrence and the financial magnitude of the risk provided a significance
or materiality value from which the risks were then prioritised.
Opportunities
The methodology used to assess opportunities was substantially similar to that used to prioritise risks, based
on two main variables: probability of occurrence and the magnitude of the opportunity.
Probability of occurrence assesses the likelihood that the impact (positive or negative) will ultimately
materialise into a financial opportunity for the Company.
Opportunity magnitude assesses the magnitude of opportunities through a combination of the following
variables:
•
Generation of economic value: economic opportunity generation was assessed.
•
Reputational enhancement: the impact of the opportunity on stakeholders and the Company's reputation
was assessed.
•
Positive effect on the supply of electricity: the potential impact of the opportunity on the supply of electricity
was assessed.
Using Redeia's risk and opportunity prioritisation methodology, the magnitude of the opportunity can be
obtained by multiplying the above variables:
𝑴𝒂𝒈𝒏𝒊𝒕𝒖𝒅𝒆 𝒐𝒇 𝒐𝒑𝒑. = 𝒆𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝒈𝒆𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒙 𝒊𝒎𝒑𝒓𝒐𝒗𝒆𝒅 𝒓𝒆𝒑𝒖𝒕𝒂𝒕𝒊𝒐𝒏 𝒙 𝒈𝒐𝒐𝒅 𝒇𝒐𝒓 𝒆𝒍𝒆𝒄𝒕𝒓𝒊𝒄𝒊𝒕𝒚 𝒔𝒖𝒑𝒑𝒍𝒚
Systemic risks are risks arising from the breakdown of the entire system, rather than the failure of individual
parts. They are characterised by modest tipping points combining indirectly to produce large failures with
cascading of interactions of physical and transition risks (contagion), as one loss triggers a chain of others,
and with systems unable to recover equilibrium after a shock. An example is the loss of a keystone species
that causes cascading effects in trophic pyramids.
Redeia considered this type of risk during the process. The Company tested the resilience of the current
strategy and business model to physical, systemic and transition risks related to biodiversity and ecosystems
through an exploratory scenario analysis following the recommendations of the TNFD. This analysis did not
reveal any systemic risks arising from Redeia's direct operations, as the material impacts and dependencies
would not lead to the collapse of ecosystems in the short or medium term, or to the extinction of species or
depletion of natural resources.
Redeia fosters and maintains a lasting relationship with its stakeholders in order to build two-way relationships
of trust. The relationship with stakeholders is predicated on the sustainability policy and the principle of
generating shared value to help develop a more prosperous and sustainable environment, collaborating with
the communities and fostering the integration of the Company's activities within the territory.
Redeia interacts continuously with the affected communities during all phases of the life cycle of the facilities,
in order to resolve doubts and concerns and to come up with solutions and plans to remedy any possible
environmental impacts. The aim is to ensure that the projects can be built and run in a sustainable manner
and to preserve the existing value and functionality of ecosystem services.
Redeia's direct operations do not depend on, or affect, raw materials with negative effects on biodiversity and
ecosystems that would require a process of consultation, information-sharing or engagement with the
communities potentially affected.
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139
Results for facilities in sensitive areas
Total, facilities*(Total Redeia – power transmission)
(*) Based on existing facilities recorded in the facilities database as of March 2024. According to the definition of nature provided by the TNFD, all
facilities or sections located in urban ecosystems have been excluded from the analysis, given that the alteration of this type of ecosystems is very
high and, therefore, the provision of ecosystem services is very low. The exclusion of facilities in urban areas is carried out using various sources of
information, depending on the country where the facility is located. It includes the facilities of the company TEN.
Facilities in sensitive areas (Total Redeia – electricity transmission)
(*) Highly sensitive facilities where both the area of occupancy and the area of influence are located in ecologically sensitive areas
A facility (overhead span, km of underground or submarine line and/or substation) is considered to be in a
sensitive area when both its zone of occupancy and zone of influence overlap or encroach with the sensitive
area.
The following areas are considered sensitive:
•
Area included in WDPA + Area in KBA + Area in GIAHs and/or ICCAs.
•
Area included in WDPA + Area in KBA.
•
Area included in WDPA.
Redeia has so far identified areas where its assets and direct activities interact with nature in ecologically
sensitive areas.
Redeia is working to be able to determine and break down, in the future, which of its facilities located in
sensitive areas are considered priority facilities, according to whether the activities carried out there have a
negative impact by causing deterioration of natural habitats and species habitats, disturbing species, and
undermining the very reasons why the area was designated as protected in the first place.
Redeia manages biodiversity based on the impact mitigation hierarchy approach by applying various
measures.
Avoidance of areas rich in biodiversity is a priority criterion and is the first to be considered when deciding on
the site of installations, both in the network planning phase and when defining each project. Sound facility
design during the planning and project phases is ensured so that new infrastructure is not developed in areas
rich in biodiversity and forest areas. According to the methodology for conducting the environmental impact
studies, the facility must not be located inside, or otherwise affect, protected areas due to their ecological,
biological, cultural and/or landscape value, or areas catalogued as being of high biodiversity value. The
methodology likewise imposes numerous requirements in relation to areas in which focal bird species and
native vegetation are present. However, considering that a high percentage of the planet's surface has some
Overhead lines
(no. of spans)
Underground lines
Submarine lines
(km)
Substations (units)
No. lines
km
Total
88,026
2,633
898
1,579
733
Overhead
lines
(no. of spans)
Underground lines
(no. lines-km)
Submarine lines
(km)
Substations (units)
Total (%)
15,352
112
42
821
46
% facilities (*)
17%
4%
5%
52%
6%
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Consolidated Management Report for 2024
form of environmental protection, it is inevitable that in some cases our infrastructure will cross paths with, or
be located in, protected spaces or areas containing species of interest.
Where this happens, all the necessary preventive and corrective steps are taken to minimise the potential
impacts of this encroachment, including habitat restoration measures when possible or regeneration
measures to improve the biophysical function of existing processes and the productivity of the ecosystem.
This includes efforts to protect habitats and vegetation during construction and maintenance work, to restore
affected areas once the work has been completed, to minimise the risk of collision, and to create firebreaks
to reduce the risk of fire.
Finally, any residual impacts that still exist after these steps have been taken are offset through various
environmental improvement actions and projects to enhance biodiversity around the facilities, thus promoting
positive action and projects and collaborating with the public administration, non-governmental organisations,
research bodies and other stakeholders. These measures and projects aim to offset the impacts by generating
positive impacts on biodiversity.
b. Policies related to biodiversity and ecosystems. E4-2
The protection and conservation of Biodiversity has always been a priority concern as part of the Company's
environmental management efforts and a key factor shaping the Group's strategy.
The Company has been following a policy known as its Commitment to Biodiversity since 2010. The main
aim of this commitment is to minimise the impact of biodiversity loss and to generate a positive impact on
biodiversity in the areas where the Company operates. This challenge is in line with the sustainability objective
of generating a net positive impact on the natural capital of the area surrounding new facilities by 2030. The
commitment also sets out to manage risks and opportunities by measuring and assessing impacts and
dependencies associated with biodiversity, and then integrating this information into internal management
processes in line with the approach proposed by the Taskforce on Nature-related Financial Disclosures
(TNFD). The scope of the biodiversity commitment covers both own operations and suppliers and within the
lines of action envisioned in the code, Redeia seeks to become biodiversity positive by adapting the
operational and strategic model governing its relationship with the natural environment at all levels of its value
chain.
Meanwhile, Redeia's Code of Conduct for Suppliers insists that all suppliers apply the necessary preventive
and corrective measures to minimise and, as the case may be, correct any impacts on habitats and species
so that they protect biodiversity while running their business. Suppliers must also apply environmental criteria
when procuring goods and services and when monitoring their supply chain, thus extending these good
practices along their own supply chain and maintaining a respectful attitude towards the environment, avoiding
any situation that could have negative implications for the environment or disturb the balance of natural
systems.
Redeia is also acutely aware of its impacts on nature and has therefore established (and regularly updates) a
series of resolute commitments to fight climate change in order to achieve carbon neutrality, and to protect
vegetation and combat deforestation in its own operations and those of its supply chain.
Redeia also addresses the social side of biodiversity-related impacts by promoting training activities,
collaborating with society, and publicly disclosing its conservation actions and projects.
Redeia has environmental management systems certified under the ISO 14001 standard, thus ensuring
compliance with the principles and the effectiveness of the actions taken in relation to biodiversity throughout
the life cycle of its facilities and activities. It also ensures ongoing, two-way communication with its
stakeholders to convey its commitment to biodiversity conservation and to listen to their needs and
expectations in this regard.
Redeia factors in sustainability criteria when it comes to land use, thus helping to ensure that new
infrastructure is not built in areas presenting high natural wealth and endeavouring to restore the areas
affected. It also considers the impacts on marine biodiversity by taking steps to minimise the negative effects
of its facilities and activities in marine environments.
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141
Redeia has several key policies in place:
•
Environmental policy: sets out Redeia's environmental policies, designed to ensure delivery of its
commitment to conserving and enhancing the environment across all its activities, facilities or services
throughout their life cycle, including distribution and logistics, in response to stakeholder needs and
interests.
•
Sustainability policy: Redeia's Sustainability Policy is there to ensure the responsible management of
the business, focusing on excellence and the creation of value for stakeholders. It sets out Redeia's
sustainability-related principles, guiding all activities towards a responsible management model, focused
on excellence and value creation for stakeholders and maximising Redeia's contribution to the Sustainable
Development Goals (SDGs).
•
Commitment to biodiversity: this policy covers Redeia's operational sites, ensuring the preservation and
restoration of biodiversity in the areas where it operates. It insists that sites be selected with great care to
avoid areas of high natural wealth and that minimisation, remediation and offsetting actions be taken, in
line with the mitigation hierarchy. The commitment includes the aim of generating a positive impact on
biodiversity in the areas where the Company operates by 2030, a challenge that is in line with the
sustainability objective of generating a net positive impact on the natural capital located in and around the
Group's new facilities by 2030.
•
Commitment to protect plant life and combat deforestation: Redeia endeavours to conserve forest
ecosystems by restoring and regenerating the areas affected by its activities, thus contributing to the fight
against deforestation.
•
Climate change commitment: the Company embraced a public and voluntary commitment in 2011 to
combating climate change, which is embodied in its commitment to achieve net zero by 2050, in its
emission reduction targets and in its Climate Change Action Plan, which were updated in 2021 to align
them with the global ambition of limiting the average temperature increase to 1.5 °C.
•
Code of Conduct for Suppliers: this code applies to all Redeia suppliers and their subcontractors and
enshrines the principles of conduct expected of them. Some of these principles are based on the supplier's
relationship with its environment. Suppliers must make efficient use of resources by fostering energy
saving and have preventive measures in place to avoid or minimise pollution, especially in relation to
greenhouse gas emissions, deforestation and soil and environmental degradation. Suppliers must also
see to it that the necessary preventive and corrective actions are taken to minimise and, as the case may
be, correct any possible impacts on habitats and species, thus helping to protect biodiversity while
performing their activities.
c. Actions and resources related to biodiversity and ecosystems. E4-3
Redeia has taken various steps and allocates resources to ensure the conservation of biodiversity and
ecosystems. These actions are aligned with its Environmental Policy and its Sustainability Commitment 2030
and are based on a mitigation hierarchy approach that includes avoid, minimise, restore and offset, thus
helping to preserve and conserve biodiversity in the territories where it operates.
First and foremost, avoiding areas that are protected or highly biodiverse is essential when deciding on
the location of facilities. Redeia avoids siting new infrastructure in protected areas or areas of high biodiversity
value. This preventive measure is essential to reduce the environmental impact right from the start of its
projects.
The second step, minimising potential impacts, is achieved through preventive and corrective action,
including habitat restoration where possible. Redeia takes steps to minimise the environmental impacts of its
facilities and activities throughout their lifecycle. If significant residual impacts do occur, Redeia applies
mitigation, restoration and rehabilitation actions to counteract these effects.
The final step, offsetting residual impacts, is achieved through environmental improvement actions and
conservation projects in partnership with public bodies and non-governmental organisations. Red Eléctrica
relies on a methodology for the quantitative assessment of impacts (negative and positive) on biodiversity.
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This methodology is followed when conducting the environmental impact studies of new power line and
substation projects, defining the baseline impact and allowing various actions to be taken during the design
phase with a view to achieving a positive impact in terms of biodiversity throughout the life cycle. The
methodology is now being followed in new energy transmission grid projects in Spain submitted for an
environmental impact assessment. The methodology allows for progress to be monitored through a bottom-
up approach and ensuring compliance with the 2030 biodiversity impact target set out in the Group's
biodiversity commitment. The design of the process is based on a natural capital vision that aims to offset the
residual impact of the project on the different natural assets, thus allowing projects to be designed on the basis
of positive biodiversity net gain criteria.
The assessment methodology delivers useful quantitative information on the residual impact of a project on
natural assets that must be offset, enabling the Company to design and establish offset measures to achieve
a positive net gain in biodiversity.
The natural biodiversity assets on which Red Eléctrica has designed its impact assessment methodology and
applied the mitigation hierarchy are those in respect of which significant residual impacts could arise over the
life cycle of the project and possibly contribute to the drivers of biodiversity loss:
•
Habitat natural asset (natural forest, non-forest and agricultural (vegetation) habitats and land uses).
•
Species natural asset (specifically avifauna).
•
Atmosphere natural active.
Redeia is currently assessing how best to include biodiversity offsets in its action plans. These actions will
include the objective of achieving a net biodiversity gain, using key performance indicators to assess and
monitor the material impacts and ecosystem changes generated by its activity. The direct and indirect costs
of biodiversity offsets will be assessed in monetary terms, and the description of the offsets will include the
area, type, quality criteria applied, and the standards they meet.
Redeia also looks to include local and indigenous knowledge and nature-based solutions in its biodiversity
and ecosystem actions. The sensitivity of the territories where it is present is analysed on the basis of the
environmental vectors indicated by the TNFD, such as importance for biodiversity, water stress and the
delivery of ecosystem services. Redeia interacts continuously with the affected communities, including
indigenous peoples, during all phases of the life cycle of the facilities, in order to resolve doubts and concerns
and to come up with solutions and plans to remedy any possible environmental impacts. The aim is to ensure
that the projects can be built and run in a sustainable manner and to preserve the existing value and
functionality of ecosystem services.
Redeia has incorporated nature-based solutions to biodiversity and ecosystem-related actions for the
treatment of vegetation located below power lines. It is known as the Network Grazing project (where livestock
clear the area below the power lines), which Redeia is carrying out to improve the biophysical function of
existing processes and the productivity of an ecosystem. The project champions ecosystem services by
improving natural resources and human well-being around transmission infrastructure through the use of
nature-based solutions (NBS). Relying on extensive livestock grazing as a means of controlling vegetation
(and in a manner harmonious with the existing ecosystem) delivers an improvement in herbaceous
composition and grassland cover by increasing the presence of pollinators. It also favours water infiltration
and counters the effects of erosion, which, stimulated by the relief and the nature of the materials, can be a
determining factor in the landscape. Pasture locks atmospheric carbon into the soil due to the large amount
of organic matter the grass accumulates among its roots. Meanwhile, the presence of livestock and the organic
matter they provide has a positive impact on soil fertility. All these regulatory services have been stepped up.
Redeia has embraced an explicit commitment to protecting vegetation and combating deforestation, which
applies to both its own operations and those of its supply chain. As wildfires are one of the greatest threats to
the preservation of forests, the Company works hard to prevent and fight this threat by ensuring absolute
compliance with the necessary safety distances between vegetation and infrastructure. This is achieved
thanks to proper maintenance of firebreaks and the perimeter strips surrounding substations located in and
around forests. The Company also collaborates actively with public administrations through partnership
agreements and pursues innovation projects related to fire prevention. Despite applying best prevention and
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143
mitigation practices, plant species that are incompatible with safety requirements in and around the facilities
must be removed in some cases. Where this situation arises, the Company has pledged to offset all the trees
and shrubs removed through planting and reforestation activities. The Company carries out offsets for all trees
removed by taking specific action aimed at the conservation of native forests and by continuing to pursue its
Redeia Forest project.
Further habitat conservation projects carried out by Redeia include the "Red Eléctrica Marine Forest" project
to restore posidonia oceanica seagrass in Mallorca. In Peru, Redinter signed an agreement for the
reforestation of four hectares of land located in the National Reserve of Salinas and Aguada Blanca.
To help protect and conserve birdlife, the main initiative is the visual marking of earth wires with bird-saving
devices. Thanks to the project "Birds and power lines: mapping of flyways", certain critical areas have been
flagged and notable progress is being made in visually marking the power lines located within them, with the
aim of achieving 100% marking of these priority areas in 2025.
Redeia has partnered up with the Autonomous University of Barcelona to assess the potential of the electricity
transmission network as infrastructure capable of creating and improving biodiversity in and around power
line firebreaks thanks to the sustainable treatment of the plant cover.
The Company also promotes and performs numerous initiatives to conserve birdlife, primarily geared towards
improving their habitats, drawing on knowledge of their behaviour and condition, as well as boosting the
population of species that are more sensitive to the presence of power lines, thus helping to offset those
impacts that cannot be prevented or mitigated.
11.2.3.3 Metrics and targets.
a. Targets related to biodiversity and ecosystems
Redeia's Sustainability Plan includes a series of objectives for 2025 related to biodiversity impacts, risks and
opportunities, including:
•
100% of critical spans visually marked for Red Eléctrica.
•
100% of investment projects associated with the commitment to protect vegetation and combat
deforestation.
Also, in line with the Biodiversity Commitment and the objectives marked out in the plan, Redeia has set itself
the following targets:
•
Measuring and valuing the impact by implementing a system of accounting for and valuing the natural
capital present in biodiversity;
•
Identifying and assessing biodiversity-related risks and opportunities;
•
Protection and restoration of habitats in protected areas or areas of high biodiversity;
•
Recovery and conservation of vulnerable and endangered species;
•
Eradication of invasive species associated with electricity transmission infrastructure;
•
Electricity infrastructure as a reservoir of biodiversity.
Ecological thresholds and impact allocation
Redeia has not established specific ecological thresholds in setting its targets. However, in new projects the
Company does assess the sensitivity and ecological value of the habitats and species present, as well as the
magnitude of the potential impacts of its actions.
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Tracking effectiveness of policies and actions through targets
Redeia has devised a set of measurable, results-oriented and time-bound biodiversity and ecosystem targets.
They are designed to support Group policies and address material impacts, risks and opportunities and are
set out in the Sustainability Plan.
Redeia monitors the effectiveness of its actions through its environmental management systems, which are
ISO 14001 certified. These systems ensure the effectiveness of the biodiversity measures put in place
throughout the life cycle of its various facilities and activities. Meanwhile, Redeia relies on its Environmental
Monitoring Programmes and specific monitoring procedures to continuously assess how its infrastructure
interacts with biodiversity, while also tracking its suppliers and their performance.
Redeia's targets are aligned with the Group's Sustainability 2030 objective, which seeks to generate a net
positive impact on the natural capital in and around its new facilities by 2030. This broad objective is measured
through a set of specific indicators that assess the impact on biodiversity and natural capital, thus ensuring
that the Group's activities do not cause a significant loss of forest area or deforestation.
The scope of these targets extends to all of Redeia's majority-owned companies and to all countries in which
it operates, including Spain, Peru and Chile. The targets also factor in the value chain by seeking to minimise
the impact on biodiversity through awareness and good practices among business partners, contractors and
suppliers.
Significant methodologies and assumptions used to define the targets include alignment with international
frameworks and policies such as the Kunming-Montreal Global Biodiversity Framework, the EU Biodiversity
Strategy for 2030, and other national policies. Redeia also champions nature-based solutions and,
alternatively, governance, management and infrastructure-based solutions.
It continuously monitors and reviews the progress made towards the targets announced. Redeia relies on
both qualitative and quantitative indicators to assess progress, ensuring that it is in line with what was initially
planned and analysing trends or significant changes in performance on the path to achieving the targets set.
Redeia's targets can be assigned to various levels of the hierarchy of mitigation measures, including
avoidance, minimisation, restoration and rehabilitation. The Group promotes solutions and new ways of
working to avoid or minimise environmental impacts and sees to it that the principles enshrined in its
Environmental Policy are observed among collaborating companies acting in its name.
b. Impact metrics related to biodiversity and ecosystem change
Surface area of facilities located in biodiversity sensitive areas
(*) Facilities where both the area of occupancy and the area of influence are located in sensitive areas. According to the definition of nature provided
by the TNFD, all facilities or sections located in urban ecosystems have been excluded from the analysis, given that the alteration of this type of
ecosystems is very high and, therefore, the provision of ecosystem services is very low. The exclusion of facilities in urban areas is carried out using
various sources of information, depending on the country where the facility is located. It includes the facilities of the company TEN.
(**) Area of occupation and influence.
Overhead lines
(no. of spans)
Underground lines
(no. lines-km)
Submarine lines (km)
Substations (units)
Total (%)
15,352
112
42
821
46
% facilities
17%
4%
5%
52%
6%
Surface area (**)
(ha) in sensitive
areas
125,820
11.7
156.6
137.8
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145
The surface areas shown reflect the sum of the areas of occupation and influence of installations located in
sensitive areas, having previously eliminated any overlaps that may exist between different sensitive areas
in the same zone of occupation/influence.
A facility (overhead span, km of underground or submarine line and/or substation) is considered to be in a
sensitive area when both its zone of occupancy and zone of influence overlap or encroach with the sensitive
area.
The following areas are considered sensitive:
•
Area included in WDPA + Area in KBA + Area in GIAHs and/or ICCAs.
•
Area included in WDPA + Area in KBA.
•
Area included in WDPA.
The areas of occupation and influence established for all the facilities are as follows:
Type of infrastructure
Area of occupancy (metres) (*)
Area of influence (metres) (**)
Overhead lines
20
100
Underground lines
2
0
Submarine lines
1
0
Substations with transformer
Fenced-off area
50
Substations without transformer
Fenced-off area
50
(*) Metres on each side of the axis of the line. In the case of overhead lines, the axis would correspond to an imaginary line connecting the supports at
their midpoint
(**) Metres on each side spreading out from the area of occupancy
Land occupation
Looking at the electricity transmission business and its direct operations, Redeia has identified one impact
related to the direct drivers of land use change. The construction of substations and land lines in Redeia's
own operations may entail a land occupancy change, meaning a change of use that could lead to a change
in soil coverage.
To mitigate this impact, Redeia seeks to avoid areas rich in biodiversity throughout the life cycle of the facilities,
treating this as a priority criterion when defining the location of the facilities, both in the planning phase of the
network or grid and when defining each project. In the case of substations, the criterion is minimising the
space required, which is key to mitigating this type of impact.
By selecting the right location for infrastructure, ensuring the proper design for facilities, and applying the
preventive and corrective measures described above, Redeia is able to avoid or otherwise minimise the
resulting impact on plant life, without causing a significant loss of forest area and ensuring that its activities do
not cause deforestation.
(*) According to the definition of nature provided by the TNFD, all facilities or sections located in urban ecosystems have been excluded from the
analysis, given that the alteration of this type of ecosystems is very high and, therefore, the provision of ecosystem services is very low. The exclusion
of facilities in urban areas is carried out using various sources of information, depending on the country where the facility is located. The total area
includes the area occupied by the company TEN's facilities and installations.
Total sealed area
In the case of the electricity transmission business, the area covered by no-permeable materials (sealed)
would relate solely to the area occupied by the overhead lines by each of the four truncated cone-shaped
concrete footings holding up each support (1.5 to 2 m2 maximum occupancy per leg). In the case of
OCCUPANCY surface area: lines (ha)
108,828
OCCUPANCY surface area: substations (ha)
1,194
Surface area (*) OCCUPANCY: total (ha)
110,022
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Consolidated Management Report for 2024
underground or submarine lines, we should not talk about the existence of impermeable areas, but rather
areas of ground taken up, or "occupied", by the cables along their route.
In the case of substations, the surface area that can be considered sealed within the site depends on several
factors, the main one being the type of substation: AIS (Air Insulated Switchgear) or GIS (Gas Insulated
Switchgear). In the case of AIS substations (normally located outdoors), there are further differences when it
comes to the non-permeable surface in each one of them, including the number of asphalted or concreted
access points, the presence of telecommunications huts and relay huts, the presence or absence of a control
or work centre, a warehouse-workshop, waste huts, waste platform, and so forth.
A case-by-case analysis would therefore be needed, involving an extensive list of variables, in order to obtain
a value for the total area sealed without such a result proving to be material, or at least indicative, in order to
contribute directly to the drivers of land use change.
Total nature-oriented area on the site (inside and/or outside the site)
The Company does not currently have nature-oriented areas, meaning those elements that promote
biodiversity, such as green roofs, green façades, landscaping with native species, insectaries and natural
restorations, except for a small, landscaped roof at its Tres Cantos 1-Cecore and Tres Cantos Campus
corporate building (Tres Cantos, Madrid).
Anticipated financial effects from material biodiversity and ecosystem-related risks and opportunities
Based on the impacts and dependencies found to exist, Redeia identified the risks and opportunities related
to biodiversity and ecosystems. Both the risks and the opportunities underwent an assessment and
prioritisation exercise in line with the requirements of the TNFD and adapting the risk assessment
methodology of Redeia's Enterprise Risk Management System.
Redeia also tested the resilience of the current strategy and business model to physical, systemic and
transition risks related to biodiversity and ecosystems through an exploratory scenario analysis following the
recommendations of the TNFD.
Redeia is making efforts so that it can disclose, in due course, the anticipated financial effects of material
biodiversity- and ecosystem-related risks and opportunities. This disclosure will provide a clearer
understanding of the expected financial effects due to material risks arising from biodiversity- and ecosystem-
related impacts and dependencies and how these risks have a material influence on the Company's financial
position, financial performance and cash flows over the short, medium and long term and the expected
financial effects due to material opportunities related to biodiversity and ecosystems.
11.2.4
ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY
11.2.4.1 Impact, risk and opportunity management
a. Description of the processes to identify and assess material resource use and circular
economy-related impacts, risks and opportunities. ESRS 2 – IRO 1
In 2024, Redeia reviewed its materiality assessment and the methodology employed to ensure compliance
with the requirements of the new European Sustainability Reporting Standards (ESRS), as described in
chapter 1.2 Materiality assessment.
Two material impacts (both negative) were identified when identifying impacts, risks and opportunities as part
of the double materiality assessment carried out in 2024. No material risk or opportunity was identified. Both
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147
impacts are disclosed in chapter 1.2 Materiality assessment, section 1.2.4 Material impacts, risks and
opportunities. SBM-3.
Impacts
Impact
Location in
the value
chain
Positive /
Negative
Current /
Potential
Time
horizon (*)
Current/anticipated
effects on the
business model,
value chain,
strategy and
decision-making
How the
impacts affect
people and the
environment
How the
impact
interacts with
the strategy
and business
model
Link between
impacts and
business
activities and
relationships
Assessment of
the resilience of
the strategy and
business model
regarding its
capacity to
address material
impacts
Scarcity of
finite
resources
due to
equipment
designs that
do not
consider the
entire life
cycle
Direct and
indirect
suppliers
N
Current
S
Scarcity of finite
resources needed to
carry out the
Company's activities
Use of finite raw
materials and
increase in GHG
emissions, which
are harmful to
society
In the case of the
natural
environment, it
can lead to the
disappearance of
habitats
necessary for
flora and fauna,
and thus to the
extinction of
i
Fostering the
use of
renewable raw
materials
These materials
are produced by
suppliers when
designing and
building
materials and
equipment.
Redeia has
included
sustainability
criteria in some of
its critical supplies,
thus allowing it to
acquire more
sustainable
equipment and
materials.
Waste
generation
Own
operations
N
Current
S
Waste generation
The main
adverse impacts
on people are
health-related
and are due to
poor waste
disposal that can
increase the risk
of disease. As
for the natural
environment, the
main damage
relates to
pollution
Minimisation
and proper
treatment of
waste
Occurs during
construction
operations or
when renewing
electrical and
fibre optic
installations
Waste
management at
Redeia aims for
optimisation,
which means
reducing, reusing,
recycling or
otherwise
ensuring the
energy recovery of
all waste
generated,
achieving zero
waste to landfill by
2030, and
extending the
useful life of
t
i l
d
*Time horizon: S (Short term), M (Medium term), L (Long term).
The impacts identified are part of the sub-topic of resource inflows, including resource use.
Resource inflows, including resource use
For this sub-topic, a material impact was identified arising from the scarcity of finite resources and caused by
a lack of commitment in product design, thus leading to an increase in waste and, in turn, to the generation
and emission of gases into the atmosphere.
No positive impacts were identified.
With regard to resource inflows, including resource use, Redeia consulted with its most critical suppliers to
determine their maturity in carrying out a Life Cycle Assessment (LCA).
Waste
For this sub-topic, a material impact was identified in relation to the waste generated along Redeia's value
chain, more precisely in activities such as the construction and renovation of electrical and fibre optic
installations.
As in the previous case, no positive impacts were identified.
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b. Policies related to resource use and circular economy. E5 - 1 + MDR-P
Redeia's environmental Policy addresses several critical aspects for the responsible management of
resources and to reduce the environmental impact. This policy is designed to ensure that all Company
activities are aligned with the principles of sustainability and circular economy, fostering the efficient and
responsible use of resources. The Company carries out all its activities with environmental protection in mind,
in accordance with the principles set out in its environmental policy, which was updated and approved by the
Board of Directors in 2023. This policy sets out, among other matters, the Company's commitment to pollution
prevention, the precautionary principle, responsible consumption and the sustainable use of resources. It also
includes various aspects to strengthen this commitment and which function as drivers in improving
environmental management, such as the life cycle approach, stakeholder expectations, the effective
transmission of its environmental commitment along the supply chain, and foresight in applying environmental
regulations. For more information, see section b. Policies related to climate change mitigation and adaptation.
E1-2 / MDR-P.
Notably, Redeia's 2030 Sustainability Commitment takes the form of 11 sustainability goals all with a 2030
vision and aligned with the strategic plan. Two of these overarching objectives are to be a leading company
in the circular economy by 2030 and to be a driver of change among its suppliers. To succeed in this task,
Redeia is firmly committed to the transition away from the use of virgin resources and towards the increased
use of secondary resources, which is already causing positive impacts.
This is reflected through the actions envisioned in its Circular Economy Roadmap, the integration of which
is also set out in the environmental policy. These actions include:
•
Zero waste to landfill: the Company aims to eliminate the production of waste destined for landfill, which
calls for efficient management and reuse of materials wherever possible. To make this happen, since 2021
it has been working towards an action plan for the reduction and recovery of 100% of waste from all Group
companies.
•
Circular economy: Redeia targets the circular economy, involving suppliers in taking positive steps to
cushion the impact on resource consumption and the environment.
•
SF6 reuse: the Company has implemented a procedure to ensure the reuse of SF6 recovered from leak
sealant, thus reducing the need to use virgin gas.
•
Single-use plastics: the Company is actively working towards the implementation of processes to eliminate
the use of single-use plastics by transitioning to 100% recyclable or recycled plastics in its packaging.
•
Sustainability criteria along the supply chain: the Company includes sustainability criteria in purchasing
decisions, thus championing circular economy, safety, diversity and biodiversity.
The Company has implemented a comprehensive assessment and monitoring system to ensure the
effectiveness of its sustainability-related policies. This system addresses material impacts, risks and
opportunities in its own operations and upstream and downstream all along its value chain. Specific actions
reflecting this integration and their positive impact include:
•
Redeia analyses various critical supplies through the simplified methodology of Life Cycle Analysis, with
the aim of making sustainability criteria part of its purchasing decisions, thus fostering circular economy,
safety, diversity and biodiversity. This initiative encourages suppliers to embrace sustainable practices as
well, extending the commitment to sustainability to all links in the value chain.
•
The Company engages its suppliers in implementing circular economy measures to reduce the impact on
resource consumption and the environment, doing so through the Redeia Code of Conduct for Suppliers,
which all suppliers must sign. This includes the integration of circular economy criteria, sustainable
resource use, eco-design, asset life extension, waste minimisation and management, training and other
supplier development activities.
•
Redeia conducts internal and external audits to assess compliance with sustainability policies along the
value chain, identifying impacts, risks and opportunities for further improvement.
These actions not only ensure sustainability in Redeia's own operations, but also generate a positive impact
on those around it and on all the agents involved in its value chain.
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c. Actions and resources related to resource use and circular economy. E5 - 2 + MDR-A
When it comes to reducing the consumption of raw materials and prioritising the use of recycled, recyclable
or reusable materials, the Company is adamant that further progress must be made towards eco-design and
in taking due account of environmental impacts by considering the life cycle of equipment and materials. This
is only possible by working closely with other key players, mainly suppliers, while fostering innovation and
technological development. Since 2022, Redeia has been working hard to identify, based on a simplified life
cycle analysis methodology, the impacts of the most critical equipment for the Company in a bid to integrate
sustainability criteria into its purchasing processes. The Company assesses aspects such as the extraction of
raw materials, the use of recycled materials, parameters of origin, durability and reparability, the production
process, the carbon and water footprint, allowing it to quantify the main environmental impacts and make
better decisions with the ultimate aim of acquiring more efficient and sustainable supplies.
Meanwhile, the Company's approach to waste focuses on its proper management and on eliminating and/or
reducing its production wherever possible. At Redeia, the waste comes mainly from maintenance and
construction work on the facilities, which is necessary to keep the assets in the best possible condition. Due
to the nature of these activities, it is very hard to predict trends in the quantities of waste produced as they are
linked to the number and types of actions carried out each year. This means that it is not possible to reduce
waste without reducing the maintenance work required and the adaptation of facilities. Moreover, these
activities must be carried out to ensure the safety of the electricity system and installations and to manage the
fibre optic network. They also happen to reduce environmental risks in many cases. Redeia always analyses
and attempts to restructure or redesign all its operations to eliminate and/or reduce waste right from the outset.
However, in many cases it is not possible to reduce the volume of waste generated annually, especially if the
volume of maintenance work and facility refurbishment and upgrade work increases during the year. For this
reason, the Group's objectives, as set out in its Zero Waste Programme, are firmly focused on completely
eliminating waste whose final destination is landfill and on reducing certain types of waste, including SF6 and
those arising from contaminated land, while always promoting alternative and innovative treatments.
Redeia currently pays certain fees as its only waste management overhead, in the sense that these actions
do not require a specific allocation of resources.
11.2.4.2 Metrics and targets
a. Targets related to resource use and circular economy. E5 – 3 + MDR-T
Redeia has set targets for each material sustainability issue. These targets track the effectiveness of the
policies and actions put in place, as well as the degree of progress made towards these targets along the
Company's value chain.
The targets identified are as follows:
Topic
2025 targets
AR 18
2030 targets
AR 18
Progress in 2024
Resource inflows,
including resource
use
Ten (10) supplies with the
greatest impact on the
transmission network, based on
circularity, climate change,
security, diversity and biodiversity
Twenty-five (25) supplies with the
greatest impact on the transmission
network, based on circularity,
climate change, security, diversity
and biodiversity criteria
Eleven (11) supplies with the
greatest impact on the
transmission network, based on
circularity, climate change,
security, diversity and biodiversity
Waste
0% Red Eléctrica waste to landfill
(*)
0% waste to landfill for the entire
Group
0% Red Eléctrica waste to landfill
(*) Does not include waste that must be taken to landfill in accordance with prevailing legislation.
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It is worth noting that all the targets set for the circular economy are voluntary and are more ambitious than
the minimum legal requirements.
As previously earlier, Redeia has two main Sustainability 2030 targets relating to resource inflows and waste.
Supplies with the greatest impact on the transmission grid based on circularity criteria
Redeia has a set of measures and objectives in place to identify the environmental impacts of equipment and
materials from their origin. The aim is to ensure more reliable tracking of such items so as to be able to
anticipate procurement risks at the Company and propose improvements that can be implemented from the
outset, thus minimising the use of raw materials and fostering eco-design and the procurement of sustainable
supplies.
Highlights here include the efforts currently being made by the Company, together with its network of suppliers,
to identify the impacts of equipment and materials from the production process onward, through a simplified
life cycle analysis methodology developed in 2022. This methodology assesses aspects such as the use of
recycled and recyclable materials, as well as their origin, carbon footprint and water footprint, enabling the
Company to quantify the main environmental impacts and make better decisions, ultimately leading to more
efficient and sustainable supplies.
In 2024, six critical supplies for Redeia were analysed using this methodology. Together with the four analysed
in 2023, these are fed into the circular economy roadmap with a view to implementing sustainability
requirements for these ten supplies in 2025, on the path to achieving a more sustainable supply network by
2030. Redeia will continue working to increase the circular design of its supplies.
Redeia has also pledged to ensure that in 2025 it uses 100% eco-packaging, recycled, recyclable or reusable
packaging and that the consumption of single-use plastics will be 0%, with the aim of increasing the circular
use ratio in the supply of equipment and materials. It is also worth noting that Redeia does not operate with
raw materials or waste of renewable origin.
Zero waste to landfill
On the subject of waste, Redeia has been pursuing an action plan since 2021 for the reduction and recovery
of 100% of the waste produced by all Group companies by 2030.
In 2024, waste was managed as follows under the terms of the plan: (1) Prevention; (2) Preparation for re-
use; (3) Recycling; (4) Other recovery; (5) Disposal. This last category (Disposal) includes reuse, recycling,
composting, anaerobic digestion and regeneration treatments.
Along these lines, some of the measures envisioned in the "Zero waste to landfill by 2030" project were
implemented, such as the incorporation of recycling/recovery requirements in tenders for waste management
and services, the installation and implementation of composters for organic waste at work centres, and a
proper analysis of the waste generation flows at all Group companies.
b.
Resource inflow and outflow parameters
i.
Resource inflows. E5 - 4 + MDR – M
Although Redeia does not consume raw materials directly, it does consume them indirectly through
transmission network infrastructure. Once a year the Company measures the impact associated with the
extraction and manufacturing stages of these resources, as they also happen to be the stages that generate
the greatest impact on the carbon and water footprint. In making this calculation, it needed to know the
weight of certified raw materials in 2024 for the transmission grid, broken down by type of material.
Redeia does not use conflict minerals (tin, tungsten, tantalum and gold from high-risk and conflict-affected
areas) in its equipment.
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151
Consumption by raw material
Raw material
2024
2023
Porcelain
1,482
856 tonnes
Plastic
4,197
2,277 tonnes
Magnetic plate metal
104
1,942 tonnes
Steel
18,530
17,659 tonnes
Aluminium
10,069
5,467 tonnes
Copper
3,293
2,166 tonnes
Paper
45
426 tonnes
Oil
447
1,918 tonnes
Zinc
812
584 tonnes
SF6 gas
25
6 tonnes
Electronic components
265
219 tonnes
Glass
177
102 tonnes
Ni-Cd batteries
110
393 tonnes
Other
245
965 tonnes
As the supplies procured by Redeia do not contain biological materials, this indicator does not apply.
100% of the supports purchased by Redeia contain 75% recycled steel.
Raw material
Weight (t)
% of total
Recycled steel
3,528
85%
The methodology used to calculate recycled steel in Redeia's supplies is based on knowledge of the
percentage of raw materials that make up each supply. Thus, knowing the weight of the supplies procured
each year, Redeia is able to calculate the tonnes of raw materials used to produce them.
To determine the weight of reused or recycled secondary components, the minimum requirement for recycled
content (75%) in supports is applied in the case of steel, as it is the most abundant material,
ii.
Resource outflows. E5 - 5 + MDR – M
In 2024 Redeia produced a total of 1,234 tonnes of waste, with Red Eléctrica accounting for more than 81%
of this total figure. In general, Redeia's waste generation is associated with the maintenance and construction
of the facilities, which is needed to keep the assets in the best possible condition. Due to the nature of these
activities, it is very hard to predict trends in the quantities of waste produced as they are linked to the number
and types of actions carried out each year. This means that it is not possible to reduce waste without reducing
the maintenance work required and the adaptation of facilities. The methodology followed to obtain these
results is based on direct measurement.
Waste management is as described in the legal waste management documentation. Waste destined for
recycling amounted to 1,163 tonnes during the period, representing 94.3% of the total (included in the generic
category of recycling: reuse, recycling, composting, anaerobic digestion and regeneration). This high
percentage has been achieved thanks to the implementation of some of the measures under the "Zero Waste
to Landfill" project. Meanwhile, the amount of waste not destined for recycling came to 70 tonnes, representing
5.7% of the total.
All figures related to resource outflows are obtained from direct measurements, meaning that no estimation
was necessary.
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Consolidated Management Report for 2024
Waste by type and disposal method
Type of
waste
Weight
(kg)
Weigh
t
(t)
Final destination (kg)
Regeneration Recycling
Recovery
Incineration
Composting Anaerobic
digestion
Landfill
Total
hazardous
waste (HW)
579,086
580
0
548,390
0
0
0
0
30,696
Total non-
hazardous
waste
(NHW)
654,659
654
3
614,873
0
0
0
0
39,774
Note: Scope of the information: Redeia. All circular economy indicators are direct measurements.
Looking at Redeia's hazardous waste, the main ones are waste electrical and electronic equipment
contaminated with oil (without PCBs), metals contaminated with hazardous substances, nickel and cadmium
batteries, water/oil mixtures and soil contaminated with hydrocarbons. In the case of non-hazardous waste,
the main categories are sludge from septic tanks, metals, inert waste, vegetable waste, paper and cardboard,
among others.
Notably, Redeia does not have any external body responsible for certifying raw materials, as Redeia does not
procure such materials directly. In relation to waste, the Company has obtained the validation of the waste
manager in each case.
11.3 SOCIAL INFORMATION
11.3.1 ESRS S1 – OWN WORKFORCE
11.3.1.1 Strategy
a. Interests and views of stakeholders. ESRS 2 SBM-2
Redeia works tirelessly to ensure public engagement processes and to strengthen its relationship with
stakeholders, more specifically with its own workforce, as described in section 1.1.4 Strategy and business
model; b) Interests and views of stakeholders SBM-2 of this report, so as to ensure that the opinions and
interests of employees underpin its strategy and business model. To make this happen, it relies on various
mechanisms, such as listening processes or the commitment to employee dialogue, so that the Company's
own employees can express their opinions and concerns and establish action and improvement plans to
ensure due respect for their fundamental rights. The People and Culture Department ensures that this
collaboration takes place and that the results are then used to manage human capital within the Company.
b. Material impacts, risks and opportunities and their interaction with strategy and business
model. ESRS 2 SBM-3
A total of 14 impacts (11 positive and three negative) were identified during the process of identifying impacts,
risks and opportunities as part of the 2024 double materiality assessment carried out. Moreover, seven
Consolidated Management Report for 2024
153
opportunities and three material risks were detected, as described in chapter 1.2 Materiality assessment,
section 1.2.4 Material impacts, risks and opportunities. SBM-3.
This identification process is one of the strategic initiatives set out in the People Operational Plan.
Impacts
Impact
Location in
the value
chain
Positive
/
Negative
Current /
Potential
Time
horizon
(*)
Current/anticipated
effects on the business
model, value chain,
strategy and decision-
making
How the
impacts
affect people
and the
environment
How the
impact
interacts with
the strategy
and business
model
Link between
impacts and
business
activities and
relationships
Assessment of
the resilience of
the strategy and
business model
regarding its
capacity to
address material
impacts
Fostering work-life
balance for
employees
Own
operations
P
Current
S
Redeia helps its
employees achieve work-
life balance by
articulating a raft of
measures and facilitating
employee communication
via the Work-Life
Balance Officer, who
provides individual
responses to personal
situations raised in this
area, such as the need
for shorter or more
flexible hours, more
flexible workspaces,
family support or equal
opportunities
Impact in
fostering a
work-life
balance for
employees
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
Impact on
employee health
of injuries caused
by certain
occupational
activities
Own
operations
N
Potential
S
Certain activities required
on the job at Redeia
could expose employees
to the risk of workplace
injuries
Impact on the
health of
workers
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
Impact on the
health of workers
due to fatalities
caused by certain
occupational
activities
Own
operations
N
Potential
S
Certain activities required
on the job at Redeia
could expose employees
to the risk of workplace
injuries
Impact on the
health of
workers
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
Encouraging
dialogue between
management and
worker
representatives
can have a
positive impact on
employee working
conditions
Own
operations
P
Current
S
Redeia guarantees the
right to trade union
membership, association
and collective bargaining
within the framework of
the provisions of the
International Labour
Organization (ILO), the
Spanish Constitution,
prevailing employment
law and the relevant
collective bargaining
agreements in effect.
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
Permanent
contracts
Own
operations
P
Current
S
Redeia promotes
permanent contracts as a
mechanism for job
stability and
quality employment,
maintaining a high
percentage of permanent
and full-time contracts.
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
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Consolidated Management Report for 2024
Guaranteeing
employees'
freedom of
association and
right to union
membership to
help analyse,
promote and
defend workers'
shared interests
Own
operations
P
Current
S
Redeia encourages
union membership and
repudiates coercion to
not unionise or any
retaliation in this regard.
Freedom of association
is understood in the
broadest sense, from
both the individual and
collective perspectives,
so as to guarantee the
ability to perform the
activities needed to form
a union within the
Company and
acknowledging that its
purpose is to defend
shared interests
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
Definition of
adequate wages
Own
operations
P
Current
S
Adequate wages lead to
employee motivation and
job satisfaction. When
employees feel valued
and adequately
compensated for their
work, their engagement
improves. This in turn
has a positive impact on
the quality of their work
and on the organisation's
overall efficiency
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
Recognition of the
contribution made
by employees
through
remuneration
processes and a
total
compensation
regime
Own
operations
P
Current
S
Redeia's compensation
model recognises its
employees' contributions
by articulating
remuneration policies
that reward top
performances while
ensuring internal
fairness.
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
ill
Favouring
employee
wellbeing through
the healthy
organisation
management
system and the
prevention of
occupational
injuries or
illnesses
Own
operations
P
Current
S
Redeia's health
organisation
management system
looks beyond the
prevention of
occupational injuries and
illnesses by addressing
personal and family
lifestyles, seeking to
implement a culture
conducive to being a
health organisation,
thereby improving the
health of Redeia's local
communities in the
process. Notably, the
healthy organisation
management system
covers 100% of Redeia's
workforce
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
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155
Improving the
quality of life of
Redeia
employees by
offering them
flexible working
times
Own
operations
P
Current
S
Redeia provides its
female and male workers
with sufficient flexibility in
arranging their working
hours, thus generating a
positive impact on their
health and well-being.
The flexibility is crucial in
allowing employees to
rest, recover and strike a
healthy work-life balance.
Providing enough time to
rest and disconnect from
work helps to ensure that
employees do not
experience high levels of
stress, exhaustion or loss
of motivation
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
A diverse and
inclusive
workplace that
fosters employee
well-being and
generates fair
opportunities
Own
operations
P
Current
S
Redeia has a
comprehensive diversity
plan for the coming years
(2023-2025), built around
three lines of initiative:
gender equality and
equal opportunities; age
management; and the
inclusion of people with
disabilities
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
ill
Fair monetary
compensation
and elimination of
gender
inequalities
Own
operations
P
Current
S
Redeia offers the same
opportunities for
development and
promotion to all, without
considering gender as a
determining factor,
focusing instead on
performance
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
Improved working
conditions
through collective
bargaining
Own
operations
P
Current
S
Redeia guarantees the
right to trade union
membership, association
and collective bargaining
within the framework of
the provisions of the
International Labour
Organization (ILO), the
Spanish Constitution,
prevailing employment
law and the relevant
collective bargaining
agreements in effect
Positive
impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
Lack of equal
opportunities due
to the gender gap
at Redeia
Own
operations
N
Current
S
A gender gap (fewer
women than men in the
workforce) may suggest
that there are differences
in employment and in
promotion and career
development
opportunities, which
could tarnish the
Company's image and
reputation
Impact on
employee
working
conditions
Redeia's
Strategic Plan
includes a
‘People' block
as a strategic
pillar
encompassing
the following
aspects:
The impact is
generated in
relation to the
Company's
people
management
activity.
Redeia embeds
these aspects in
its business
model, based on
the progress made
towards the
Strategic Plan,
which has the
‘People' block as
one of its strategic
pillars
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Risks
Description of the cause of the risk
Location in
the value
chain
Time
horizon (*)
Current/anticipated effects on the business
model, value chain, strategy and decision-
making
Current financial
effects arising from
risks.
Assessment of the resilience of the
strategy and business model
regarding its capacity to address
material impacts
Increase in operating expenses due
to an increase in economic
contingencies and in the related
insurance premiums, potentially
affecting Redeia's profitability.
Moreover, a significant volume of
claims could indicate underlying
problems in occupational safety
management, which could lead to
additional costs related to mitigation
and safety, as well as reputational
damage for Redeia.
Own
operations
S
Increase in operating expenses due to
higher insurance premiums. Moreover, a
significant volume of claims could indicate
underlying problems in occupational safety
management, which could lead to
additional costs related to mitigation and
safety, as well as reputational damage for
Redeia.
Negative impact on
cash flows
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
Vulnerability to significant financial
losses as a result of inadequate
insurance coverage in the event of
damages such as workplace
accidents
Own
operations
S
Significant costs to cover damages and
claim settlements, which may negatively
affect Redeia's liquidity and financial
stability
Negative impact on
cash flows
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
i
ill
Opportunities
Description of the cause of the
opportunity
Location in
the value
chain
Time
horizon (*)
Current/anticipated effects on the
business model, value chain, strategy and
decision-making
Current financial
effects that arise
from
opportunities.
Assessment of the resilience of
the strategy and business model
regarding its capacity to
address material impacts
Enhanced transparency and
corporate responsibility at Redeia,
fostering solid and lasting
relationships with stakeholders by
implementing structured and
recurring listening tools. This could
also pave the way for better
integration of their expectations and
needs in Redeia's operations and
strategies
Own
operations
S
Improved relationships, increased customer
and employee loyalty and satisfaction
Positive effects on
the cost of capital
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
Satisfaction of employee
expectations thanks to constant
review and updating of Redeia's total
compensation model to ensure it
remains competitive
Own
operations
S
High employee retention and lower turnover
costs, increased productivity and employee
motivation, leading to an improvement in
Redeia's reputation and making it easier to
attract talent
Positive impact on
cash flows
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
Increased employee satisfaction as
a result of bolstered listening tools
and employee engagement in
developing the work-life balance
model
Own
operations
S
High employee retention and lower turnover
costs, increased productivity and employee
motivation, leading to an improvement in
Redeia's reputation and making it easier to
attract talent
Positive impact on
cash flows
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
Better communication and
collaboration between the
organisation and its employees
thanks to the existence of active and
effective works councils leading to
more inclusive and effective
decision-making and more efficient
implementation of labour policies
that respond to employees' real
needs
Own
operations
S
Improved decision-making and
implementation of labour policies through the
active participation of works councils can lead
to increased employee satisfaction and
retention, thus reducing the costs associated
with high turnover and recruitment. Moreover,
an improved work environment and well-
adapted policies can increase productivity
and operational efficiency, resulting in
improved overall Company performance
Positive impact on
cash flows
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
Increased investment in
development and training, in addition
to a stronger workforce thanks to
talent retention
Own
operations
S
Improved talent retention, leading to improved
workforce productivity, as well as reduced
costs of recruiting and training new
employees
Positive effect on
cash flows and on
the Company's
growth and
position
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
i
ill
Increased workforce diversity by
integrating more people with
disabilities under the scope of
Redeia's Disability Plan
Own
operations
S
Enhanced reputation for Redeia as an
inclusive employer, allowing it to attract more
customers and business partners. Possible
tax benefits or government incentives for
inclusive practices
Positive effect on
cash flows and
cost of capital
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
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157
Strengthening Redeia's position as
a leader and benchmark in gender
equality.
Own
operations
M
Improved attraction and retention of diverse
talent, reduced turnover and recruitment
costs, increased productivity and innovation
through an inclusive work environment, and
enhanced reputation for Redeia, which can
open up new business opportunities and
strategic alliances. There may also be
financial benefits due to incentives and
subsidies for embracing gender equality
practices
Positive effect on
cash flows and
cost of capital
Redeia embeds these aspects in
its business model, based on the
progress made towards the
Strategic Plan, which has the
‘People' block as one of its
strategic pillars
*Time horizon: S (Short term), M (Medium term), L (Long term).
The assessment revealed material results in impacts, risks and opportunities (IROs) in the following sub-
topics: Working conditions and Equal treatment and opportunities for all.
The impacts identified on the Company's own workforce come as a result of Redeia's own business model
and a proper assessment of these impacts is important to ensure that the Company's strategies are
adequately defined and scrutinised. The negative impacts described are expressed broadly in terms of the
context in which the Company operates, while the positive impacts are common to all Redeia's activities.
The Company did not identify any region-specific or geographically limited impacts, nor any operations
carrying a significant risk of child, forced or compulsory labour.
Working conditions
For this particular sub-topic, the following sub-sub-topics were found to be material:
•
Secure employment, which has a positive impact in relation to permanent hiring, thanks to the Company's
efforts to promote permanent contracts, thus generating greater income stability and improving the job
security of all Company employees
•
Adequate pay, which includes two positive impacts, one risk and one opportunity. In terms of impact,
Redeia operates a total compensation model, which fosters the motivation and satisfaction of its
employees by rewarding their contributions, while also ensuring salary equity. When it comes to risk,
Redeia factors in the possibility of employee dissatisfaction due to the perception that the salaries they
receive are not competitive. Therefore, an opportunity exists to meet their expectations by regularly
reviewing and updating the model to ensure that it remains competitive at all times.
•
Working time, which has a positive impact and is also an opportunity. As for the positive impact, Redeia
improves the quality of life of its employees thanks to the flexibility it offers in relation to their working
hours, where workers have a wide range of starting and ending times to choose from, thus catering to
their personal and professional needs and circumstances. This gives them more free time, generating a
positive impact on their health and well-being. Redeia believes that time off is crucial for employees to
rest, recuperate and balance their work and personal lives, as with enough time to rest and disconnect
from work, employees can avoid experiencing high levels of stress, exhaustion or loss of motivation.
As for the opportunity associated with this sub-topic, it relates to the reduction of absenteeism and
employee turnover due to job satisfaction, which reduces recruitment and training costs. It also helps to
reduce the number of labour disputes, resulting in lower legal costs.
•
Work-life balance, which has a positive impact as well as an opportunity. With regard to the impact
"fostering work-life balance for employees through the various measures proposed by Redeia", the
Company promotes a healthy work-life balance through a set of 70 measures. It also establishes a channel
for dialogue with its employees via the Work-Life Balance Officer, who responds individually to exceptional
personal situations not contemplated within this framework, such as the need for shorter or more flexible
working hours, location-based and time-related flexibility measures, family support or equal opportunities.
Meanwhile, the opportunity relates to the increase in employee satisfaction as a result of enhanced
listening tools and employee engagement in developing the work-life balance model.
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•
Freedom of association, the existence of works councils and workers' rights to information,
consultation and participation, which also entails both a positive impact and an opportunity. In
relation to the impact, Redeia guarantees the right of freedom of association and union membership
among its employees in order to analyse, promote and defend the common interests of workers. As for
the related opportunity, the Company improves communication and collaboration between the
organisation and its employees by ensuring the existence of active and effective works councils leading
to more inclusive and effective decision-making and more efficient implementation of labour policies that
respond to employees' real needs.
•
Employee dialogue: this sub-sub-topic has a positive impact, a risk and an opportunity. Looking at the
impact, Redeia fosters dialogue between management and the workers' representatives, thus achieving
better working conditions for its employees, which ultimately has a positive impact on their working
conditions.
In terms of opportunity, Redeia promotes transparency and corporate responsibility by fostering stronger
and more lasting relationships with stakeholders through the implementation of structured and regular
listening processes. It also considers the risk that a deterioration in Redeia's communication channels
could have a negative impact on working conditions and impede the effective management of internal and
external relations. This could lead to misunderstandings and conflicts between employees, the Company
and other stakeholders. This risk depends on the impact of Improved working conditions through collective
bargaining, and is considered to be very low due to the positive impact of the Company's efforts to foster
permanent dialogue between management and the employee's representatives. Were this risk to
materialise, it would affect 83% of the Company's employees (those covered by a collective bargaining
agreement).
•
Collective bargaining, including the proportion of workers covered by collective agreements, a
sub-sub-topic consisting of one positive impact and one opportunity. Improving working conditions through
collective bargaining has a positive impact, as it guarantees the right to trade union membership,
association and collective bargaining within the framework of the provisions of the International Labour
Organization (ILO), the Spanish Constitution, prevailing employment law and the relevant collective
bargaining agreements in effect. Redeia also maintains and promotes employee dialogue, which has a
positive impact in helping to ensure the existence of balanced solutions for all Redeia employees, creating
the opportunity to respond to new needs or changes at work, among others, by enabling working
conditions to be adapted through collective bargaining and agreements with the social partners.
•
Health and safety, which has two negative impacts, one positive impact, and two risks. The negative
impacts relate to the possible effects on the health of employees, whether due to injury or death as a result
of certain work activities. Although these impacts are potential, and relate specifically and individually to
the activities of maintenance and construction of electrical and telecommunications infrastructures, which
are carried by certain company divisions, Redeia has a 2024-2025 occupational safety and wellness action
plan, as well as an annual preventive planning. These instruments include robust prevention and mitigation
measures drawn up following an assessment of the risks of the jobs, thus helping to ensure that these
activities are carried out in the safest way possible.
In relation to the positive impact, Redeia works to ensure the well-being of its workers through the Healthy
Organisation Management System, the model of employee wellness and injury and illness prevention, the
scope of which goes beyond the business side of things to include the personal and family lifestyle, and
by entrenching the right culture to become a healthy organisation, thus also helping to improve the
communities in which Redeia has a presence.
In relation to the risks identified, Redeia is wary of a possible increase in operating expenses or financial
losses due to an increase in economic contingencies and in the resulting insurance premiums, although
this would be a relatively low impact in any case. Moreover, a significant volume of claims could indicate
underlying problems in occupational safety management, which could lead to additional costs related to
mitigation and safety, as well as reputational damage for Redeia. However, these risks have a limited
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159
impact, since they affect a specific group of Company workers; more precisely those who carry out tasks
related to infrastructure maintenance and construction activities.
Equal treatment and opportunities for all
•
Diversity: sub-sub-topic presenting one negative impact, one positive impact and one opportunity.
Regarding the negative impact identified, relating to a lack of equal opportunities stemming from the
gender gap in Redeia's workforce, the Company is cognisant that a gender gap may indicate that women
have fewer opportunities for employment, promotion and professional development compared with men.
Therefore, one of the Group's objectives is to promote diversity in the form of gender equality, aiming to
reach 38% of women in the management team and 31% of women in the workforce by 2025, thus reducing
gender inequality. However, this is a narrow impact, as it affects certain areas of the Company due to the
idiosyncrasy of the functions performed, which are closely related to the electricity business and STEM
(Science, Technology, Engineering and Mathematics) functions.
In Spain there is notable gender inequality in STEM disciplines, meaning that the percentage of men in
STEM positions is higher than that of women. While public administrative bodies and private sector
companies alike are taking steps to promote this type of studies, focusing on female participation, until
these measures are fully implemented and their effects begin to be felt, Spain will remain below the EU
average for a good number of indicators, which will in turn affect the presence of suitable candidates within
the labour market in STEM jobs. Even so, Redeia carries out various actions to reduce this gap, including,
within its Integral Diversity Plan, the gender equality vector, which looks to improve employment
opportunities, promote women in positions of responsibility, ensure wage equality between men and
women, foster STEM vocations among women, promote shared responsibility for children among both
parents, and prevent moral, sexual and gender-based harassment, as well as gender-based violence.
As for the positive impact, i.e. a diverse and inclusive work environment conducive to the well-being of
employees and providing fair opportunities, Redeia has a comprehensive diversity plan in place for the
coming years (2023-2025), built around three lines of action: gender equality and equal opportunities, age
management and the inclusion of people with disabilities, together with a wellness model that includes
and showcases the value of all these measures.
Meanwhile, the opportunity identified relates to greater innovation, creativity and competitiveness by
building a more diverse workforce. This is considered essential in order to promote an outstanding working
environment based on ethical behaviour, respect, diversity and equality; a commitment embedded in our
corporate culture and in the Company's internal policies.
•
Gender equality and equal pay for work of equal value, where a positive impact and opportunity have
been identified, both linked to equal compensation by offering equal opportunities for further development
and promotion, thus enhancing Redeia's image as a leader and benchmark in gender equality. Gender
equality is one of the vectors included in the comprehensive diversity plan and covers equality in several
areas, including employment opportunities, the promotion of women in positions of responsibility and equal
pay for men and women, among others.
•
Employment and inclusion of persons with disabilities, which presents an opportunity for making
Redeia's workforce more diverse by bringing in employees with different abilities, thus promoting the
integration of people with disabilities under the Disability Plan put in place and making the Company an
inclusive employer.
•
Training and skills development, which presents an opportunity for improving levels of talent retention
by increasing the skills of the workforce, as well as an improvement: making the workforce stronger by
retaining talent, thus also achieving an increase in productivity.
Note that the positive impacts identified, which affect all Redeia employees, arise from the activities being
undertaken to fulfil the operational plan for people. This plan stems from the Company's strategy, which
rests on seven strategic pillars, one of which is people. The vision of this particular pillar is to develop the
cultural side of the transformation process in which the Company is immersed, pursuing:
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– the safety and well-being of people to achieve healthy working environments,
– developing an innovative, agile and collaborative culture to nurture talent, anticipating needs and
achieving an organisation capable of meeting the challenges of the strategic plan within an
environment of permanent change, and
– fostering cultural transformation and sustainable management to make the organisation a benchmark
as a healthy company.
These activities are carried out within the framework of Redeia's people policy, which promotes:
•
Innovation, applying it as a lever for differential improvement among work teams and as a means of
personal and collective safety.
•
Physical safety, ensuring the safety of people when performing their duties, championing a culture of zero
accidents, encouraging lifelong training and the ongoing improvement of safety procedures and
processes.
•
Prevention of occupational risks.
•
Commitment to people safety, a cornerstone of the Company's comprehensive safety policy.
•
A total compensation model and system that ensures internal equity, is competitive in the market,
combines monetary and emotional items, and recognises and respects the different needs and
expectations of employees and the Company.
•
Promoting a healthy organisation model and management system that fosters best practices in terms of
safety and physical, psychological and social well-being, with the participation engagement of all
stakeholders, as well as the development and promotion of work-life balance as key factors influencing
well-being.
•
Actions to respect diversity and inclusion in the broadest sense, fostering equal opportunities and non-
discrimination in people management processes.
•
Anticipating and adapting the existing labour relations framework to prevailing law and regulations,
factoring in business needs and best practice in the labour market.
•
Promoting internal communication that aligns people with the strategy, acting as a fulcrum for cultural
transformation and implementing listening channels to continuously improve the organisation's work
climate.
Notably, no impacts on own staff were identified as a result of energy transition plans to reduce the negative
environmental impacts and achieve greener, climate-neutral operations.
The persons affected by the impacts, risks and opportunities (IROs) described above, own workforce, are
both people who are in an employment relationship with Redeia (employees) and non-employees who are
either people with contracts with Redeia to supply labour (self-employed people) or people provided by
undertakings primarily engaged in employment-related activities. Redeia's employees and their families are
covered by HR policies and management, helping the Company deliver its strategic objectives and tackle
future challenges, and serving as key ambassadors for the Company's image and reputation. Not included
are interns, as they fall under an educational framework focused on acquiring practical knowledge, without
there being a formal employment relationship. Note additionally that people indirectly linked to Redeia (non-
employees) are primarily used to cover maternity/paternity leave, or substitute employees in situations of
temporary, long-term disability. Over the past few years, they have accounted for less than 1% of the total
workforce.
In the risk analysis process, the Company considers the varying degrees of exposure to physical risks faced
by its own personnel working in environments with specific characteristics, specific contexts or performing
particularly hazardous activities. Here, in particular, the Company analysed the impact of an ageing workforce
across the Company and the risks arising from this.
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161
Redeia identified a material impact related to this analysis of physical risks arising in the workplace among its
own employees with particular characteristics, working in particular contexts, or performing particular
activities. This impact is defined as "A diverse and inclusive workplace that promotes the wellbeing of
employees and generates fair opportunities" and relates to the adequacy of the work environment in achieving
the wellbeing of all workers. Redeia has a comprehensive diversity plan, built around three lines of action:
gender equality and equal opportunities; age management; and the inclusion of people with disabilities.
11.3.1.2 Impact, risk and opportunity management
a. Policies related to own workforce. S1-1 and MDR-P
Redeia's Personnel Policy sets out the principles that govern the management of people through leadership,
efficiency, innovation, cultural transformation, and personal and professional fulfilment. It focuses on the
employee experience and addresses any personnel-related impacts, risks and opportunities, particularly
regarding occupational health and safety. This policy is applicable to all the organisation's activities and
geographies to ensure compliance with those principles and contribute to the achievement of the
organisation's purpose and strategic objectives, in keeping with the values, principles and behaviour
guidelines enshrined in the organisation's Code of Conduct and Ethics. The Board of Directors oversees
enforcement of the policy through the Appointments and Remuneration Committee. To make sure it is easily
accessible by all relevant stakeholders, the policy is available on both the corporate website and intranet.
The Personnel Policy is implemented and completed by internal rules related to human capital and applies
directly to Redeia's own employees. These include:
•
The Occupational Health and Safety Manual, which governs the occupational health and safety (OHS)
management system at companies in the Redeia joint health and safety service and is considered to be
an occupational risk prevention plan in accordance with article 16 of Spain's Occupational Risk Prevention
Law. It also outlines the bases and content of the OHS management system to minimise risks, avoid
accidents and provide a higher level of worker health and safety. We first adopted the framework proposed
in OHSAS 18001:2007, subsequently amended in 2019, to adapt to the ISO 45001 standard, setting out
the Company's proposed health and safety guidelines, principles and objectives, and including the OHS
control data, definitions and processes.
•
The Occupational health and safety guidelines, which set out the strategic principles and guidelines
for OHS management with the aim of embedding the OHS management of all people in the organisation
into all the Company's processes and activities, and recognising, as a strategic OHS objective, the
minimisation of risks related to people and facilities where the organisation carries on its business.
•
The General work-life balance procedure, which establishes the criteria of operation of Redeia's work-
life balance management model. The document outlines the responsibilities of the various agents involved,
including the Executive Committee, which promotes implementation of the procedure to manage work-life
balance in the best possible way, in line with Redeia's Code of Conduct and Ethics and Personnel Policy.
It also sets out the steps taken to ensure that the work-life balance model is implemented properly and
defines the organisational support required to manage the model. It identifies the highest level of
management and the technical team, as well as the mechanisms to monitor, measure and assess the
level of achievement of the work-life balance initiatives.
•
The Employment Handbook, which sets out the principles and guidelines governing the employment
framework within the Group. Covering recruitment, selection and hiring processes, the document
describes the activities to be carried out by all parties involved. It establishes a clear and structured
framework for managing employment in Redeia, ensuring that all related processes are carried out in a
manner that is coherent and aligned with corporate principles.
•
The Diversity Management Handbook, which sets out the principles and guidelines for diversity
management, equal opportunities and non-discrimination. It formalises Redeia's commitment and
strategic approach to diversity management, with the aim of creating a process of continuous improvement
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Consolidated Management Report for 2024
supported by monitoring and evaluation mechanisms. With this, Redeia strives to enhance employee
satisfaction and engagement through effective diversity management, promoting equal opportunities and
preventing discrimination in all its forms.
•
The Training Procedure, which governs the training process, encompassing the identification, design,
management, evaluation, and monitoring of training initiatives for Redeia employees. Its purpose is to
ensure that training is coherent, effective, and aligned with the Company's strategic objectives.
•
The Digital Disconnection Protocol, which establishes guidelines to guarantees employees' right to
disconnect outside working hours. It seeks to achieve a better work-life balance, ensuring employees'
wellbeing and cultivating a culture of shared responsibility across the organisation.
The Group also has other issue-specific documents, including on social dialogue, gender equality, and
workplace safety.
Meanwhile, the collective bargaining agreements of Red Eléctrica de España, S.A.U., Redeia
Corporación, S.A. and Redeia Infraestructuras de Telecomunicación, S.A.—the three Redeia Group
companies subject to their own collective bargaining agreement—govern the organisation of social dialogue
and the system of worker representation at the Company through various committees, each with their own
specific remit. In this regard, negotiations with workers' representatives form a regular part of Redeia's labour
relations, maintaining ongoing dialogue with them and their respective trade union organisations in order to
establish the rights and duties of the parties.
Regarding human rights policies, respect for human rights is one of the ten principles underpinning Redeia's
2030 Sustainability Commitment. The Company has embraced an explicit and public commitment to
promoting and respecting human rights in all its activities and the territories where it operates, focusing on the
freedoms and rights of vulnerable groups. It has a zero-tolerance approach to discrimination in the workplace
and takes disciplinary action against any form of discrimination based on sex, race, age, religion, sexual
orientation, ideology, nationality, social origin, or disability. It also upholds the rights of vulnerable groups,
including indigenous peoples, women, children, persons with disabilities, ethnic minorities, the LGBTI
community, and migrant workers, among others, aware of their particular risk of vulnerability. Redeia is also
against any behaviour that might constitute moral, sexual or gender-based harassment, laying the foundations
for preventing and redressing this conduct and extending this respect more broadly to its relationships with
third parties. This commitment was reinforced in 2022 with the formalisation of the Ten Principles for respect
for human rights, which was made public through the Commitment to the promotion and respect for human
rights in order to cement the corporate values, principles and rules of conduct set out in Redeia's Code of
Conduct and Ethics and in its Sustainability Policy. This commitment is aligned with the United Nations
Universal Declaration of Human Rights.
The Code of Conduct and Ethics also formalises Redeia's express and public commitment to respecting the
principles of the Universal Declaration of Human Rights. In the field of labour, it guarantees rights to collective
bargaining and freedom of association, the prevention of child labour, and the eradication of forced or
compulsory labour which, in turn, is reiterated and embodied in Redeia's pledge to promote and ensure
respect for human rights.
Additionally, Redeia has been performing annual due diligence processes since 2013 in all Group companies
(including investees) to identify potential risks or violations of human rights stemming from its direct or indirect
activity. In 2022, it updated its internal due diligence processes in respect of its own activities and relationships
with third parties, bringing them into line with domestic and international legislation and current trends, as well
as with emerging rights and new rights-holders on whom they could have an impact. In order to ensure
continuous improvement in this field, these regulations are reviewed annually. The findings showed that from
the Company's activities (operation of Spain's electricity system, management of electricity transmission grids
and telecommunication networks) and the location of the Company and its ARGO and TEN investees (Spain,
Peru, Chile, Brazil, Argentina and Mexico), Redeia's primary human rights risks are linked to forced and child
labour, human trafficking, freedom of association and right to collective bargaining, equal pay, discrimination,
health and safety, decent work, data privacy and security, identity and social, cultural and economic rights of
indigenous peoples, private property, fair taxation, corruption, a healthy environment and ethical management.
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163
These risks are updated with each new acquisition by the Company and its expansion into new geographies.
Therefore, no review was warranted in 2023.
Notably, no material human rights risk was identified in the Company's operations carrying both a high
probability of occurrence and a severe impact were they to materialise thanks to the myriad prevention
measures put in place by Redeia through its internal rules and regulations.
As noted previously, the Company pays special attention to vulnerable groups, and as such instils this in the
corporate culture through the Ten Principles for respect for human rights, included in its Commitment to the
promotion of and respect for human rights, the Code of Conduct and Ethics and the Sustainability Policy.
Moreover, the Company is aligned with the International Labor Organization (OIT) and OECD Guidelines in
assuring fundamental rights in the workplace.
b. Processes for engaging with own workers and workers' representatives about impacts.
S1-2
As described above, negotiations with workers' representatives, which comprise 98 people—13 women and
85 men—form a regular part of Redeia's labour relations, designed to establish the rights and duties of the
parties in maintaining ongoing dialogue.
Social dialogue is also supported by the various committees established in collective bargaining agreements
and comprising representatives of the employer and of the employees. Currently, these are:
Red Eléctrica de España, S.A.U. committee
Health and Safety Committee
Equality Plan Monitoring Committee
Social Affairs Committee
Work Flexibility Committee
Employee Classification Committee
Closed Shift Special Regime Committee
Training Committee
Geographic Mobility Committee
Intercentre Committee
Remote Work Collective Agreement Monitoring Committee
Collective Bargaining Agreement Oversight and Interpretation Committee
Redeia Corporación, S.A. committees
Health and Safety Committee
Social Affairs Committee
Employee Classification Committee
Training Committee
Collective Bargaining Agreement Oversight and Interpretation Committee
Equality Plan Monitoring Committee
Remote Work Collective Agreement Monitoring Committee
Redeia Infraestructuras de Telecomunicaciones, S.A. committees
Health and Safety Committee
Equality Plan Monitoring Committee
Collective Bargaining Agreement Oversight and Interpretation Committee
Work Flexibility Committee
Hispasat, S.A. committees
Health and Safety Committee
Meetings of these committees are called upon request of any of the parties as necessary.
The equality plan monitoring committees oversee the discussion of the equality plan and the initial diagnosis.
They are also in charge of preparing the diagnostic report, identifying priority measures and defining their
scope of application, and determining the necessary material and human resources to implement them. They
are also tasked with driving implementation of the plan, defining performance metrics, developing the
necessary data collection tools for monitoring, and assessing the level of achievement of measures
implemented.
The Company is directly involved, through labour relations staff, with the committees created as a result of
Redeia's three collective bargaining agreements (i.e., the 12th Collective Bargaining Agreement of Red
Eléctrica, the 1st Collective Bargaining Agreement of Redeia Corporación, and the 2nd Collective Bargaining
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Agreement of REINTEL). Additionally, at least one management team member attends meetings of
committees focused on specific groups of employees with special working conditions (e.g., the Work Flexibility
Scheme Committee or the Closed Shift Special Regime Committee). Management team members also attend
meetings of other collective bargaining committees when the expected topic of discussion may require quick
decision-making. This approach ensures that all matters addressed in meetings—and the related feedback—
are effectively integrated into the decision-making process.
Meanwhile, Health and Safety Committee meetings are held to monitor health and safety activities, discuss
new legislative developments, review processes and internal rules and regulations, and analyse and monitor
OHS results and programmes, including relevant accidents and incidents, and safety equipment and
materials. The minutes of these meetings are made available to all employees under a dedicated section of
the corporate intranet sites. The committees also discuss the findings of internal and external audits carried
out and any improvement actions that may be implemented. They meet quarterly (in accordance with
Occupational Risk Prevention Law 31/1995) and at the request of any of the parties.
The head of the Workplace Safety and Wellness Department, along with another members of the management
team of the relevant company, are members of the Health and Safety Committees at Redeia (Red Eléctrica,
with six members, Redeia Corporación, with three members, Reintel, with two members, and Hispasat with
two members). This approach ensures that all matters addressed in these meetings—and the related
feedback—are not only received directly by OHS technicians, but also directly by at least two management
team members, thereby speeding up decision-making. The minutes of their respective health and safety
committee meetings are available to all employees at the respective companies on the intranet. Any issues
arising from these minutes are addressed together with the various stakeholders to find solutions, make
improvements, or respond to requests.
For a better understanding of employees' needs, the Company has introduced several initiatives, such as the
pulse survey system, surveys for specific evaluations, and the action plan of the Protocol for Board
engagement with employees.
Pulse surveys provide quick insight into employees' views on specific topics so that targeted action and
improvement plans can be developed. This allows for continuous measurement of certain aspects related to
the Company's various initiatives and projects, as well as at different stages of the employee lifecycle. These
'listening processes' are crucial for knowing the views of Redeia's own employees on a range of significant
matters at the Company impacting their daily work.
Redeia also conducts detailed surveys based on scientifically validated questionnaires for more in-depth
assessment of specific aspects (e.g., psychosocial risks, employee wellbeing).
Psychosocial risk assessments focus on evaluating the psychosocial working conditions related to positions
that affect employees' overall and mental health. The primary objective is to detect risk factors in the
organisation and define preventive measures to avoid potential harm. The findings are used to draw up a
targeted action plan and identify the management of psychosocial risks as a priority of risk prevention. A new
edition of this assessment will be performed in 2025.
In 2024, an assessment of wellbeing was carried out entailing a comprehensive analysis of personal wellbeing
covering five core pillars: physical, emotional, financial, social, and professional wellbeing. The process
included a self-perception survey in which each person assessed their wellbeing again these five pillars to
obtain an overall and an individual wellbeing rating, which was then used to pinpoint specific areas of
improvement. The survey also produces an individual "healthy habits passport", which includes individual
actions that can be taken to raise the person's perception of wellbeing. The target for this assessment was to
raise the perception of wellbeing of Group employees by 15% from the 2023 survey. The overall rating
obtained was 66 out of 100 (i.e., a 27% increase).
As part of the action plan of the Protocol for Board engagement with employees, meetings were held at
which members of the Board of Directors gave employees an account of the work done by the Board of
Directors of Red Eléctrica Corporación, S.A., while at the same time brief them on key current events for
strategy and corporate governance.
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Cooperation between the Company and its own workforce is essential for managing impacts. The level is
gauged both directly (via pulse surveys, questionnaires, risk assessments, etc.) and through workers' legal
representatives on a regular basis through meetings with the various bodies described previously. In all cases,
the People and Culture Department has the duty of ensuring that this cooperation occurs and that the results
serve as a basis for the Company's approach to human capital management.
The Company's activities include integration of renewable energy into the electricity system and connectivity.
Neither requires a transition to decarbonised activities. Therefore, there are no negative impacts on the own
workforce arising from the transition to more sustainable activities. Accordingly, no actions to mitigate such
impacts were adopted. Impacts and actions related to the Climate Change Action Plan are disclosed to
employees primarily through the Group's Sustainability Report, although other tools are available, e.g., the
corporate intranet.
c. Processes to remediate negative impacts and channels for own workers to raice concerns.
S1-3
The Ethics and Compliance Channel is the formal mechanism for raising queries and reporting breaches.
Available on the corporate website, this channel can be used to submit queries, report breaches, or make
suggestions.
Microlearning modules are developed to raise awareness among Redeia employees about the Ethics and
Compliance Channel and to cultivate a culture of communication as a core element of the Company's integrity
model.
The Ethics Manager, working alongside the Compliance area, handles all the issues raised and addressed.
The channel is regularly audited and guarantees maximum confidentiality and anonymity of users, of the
information communicated, and of the actions carried out, reinforcing the necessary safeguards and enabling
closer monitoring of all enquiries and reports submitted through the software application.
The Company regularly carries out surveys among Redeia staff to assess perception, knowledge and use of
the Ethics and Compliance Channel.
Redeia also happened to design and implement a protocol regulating internal investigations linked to the
Ethics and Compliance Channel. At Redeia, internal investigations are carried out in strict compliance with
applicable legislation and the commitments embraced by the organisation in its Code of Conduct and Ethics,
its Compliance Policy and in the above-mentioned Ethics and Compliance Channel Management System and
Whistleblower Protection Policy, while respecting the rights and freedoms of all employees and third parties
involved. To help disseminate and enforce the protocol, training workshops were held for those employees
directly involved in such investigations.
Labour Relations is in charge of channelling the queries, complaints, and claims of the Group's own workforce
received via email or phone, and handling them jointly with workers' representatives. Meanwhile, unresolved
issues raised by employees to either their representatives or to the Company are reviewed at meetings of the
various committees set up with workers' representatives and at regular meetings with trade union sections.
Additionally, through the international occupational health and safety (OHS) management system, both the
own workforce and suppliers authorised for maintenance tasks can report any job-related risks they identify.
This tool also includes a channel for submitting proposals for improvement through which users can suggest
any area for improvement of their jobs or report a potentially imminent risk.
In 2024, the Company launched the Pregúntame service, an employee portal designed to enhance the
efficiency in query management, reduce response time, and upgrade attention provided to in-house
employees. This new communication channel is for people management-related matters, enabling employees
to submit queries or suggest improvements. It also features a 24/7 chatbot.
Redeia has a listening system ('pulse surveys') which is designed to allow it to rapidly gather feedback from
employees about specific corporate topics in order, ultimately, to better understand employee wellbeing and
motivation. This model includes tools for effectively measuring employee satisfaction and other important
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aspects, including motivation and sense of belonging. The pulse results are analysed and, as appropriate, an
action plan is drawn up.
d. Taking action on material impacts on own workforce, and approaches to mitigating
material risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions. S1-4 and MDR-A
Redeia focuses on implementing actions and measures that support compliance in order to drive positive
impacts and mitigate negative impacts, assuring the Company's long-term sustainability and, as part of its
human approach, creating value for its own workforce. Managing these impacts may include the early
termination of contracts with third parties that are not aligned with the Company's long-term strategies.
The actions described below, either undertaken during the reporting period or scheduled for future periods,
are in response to the Company's impact assessment. They were implemented to prevent, mitigate, or remedy
negative impacts, as well as to foster and leverage opportunities and positive impacts for employees.
Professional growth and employability
Redeia is firmly committed to the professional growth of its personnel and to maintaining their internal
employability during their life cycle, through integration, development, learning and mobility programmes.
At 31 December 2024, Redeia had a total headcount of 2,489, with 99.3% of employees on permanent
contracts. The Company's commitment to stable and quality work is illustrated by the small share of temporary
contracts in the mix and the low voluntary turnover rate (2.9%).
In 2024, a mere 1.1% were internship or employment contracts with temporary employment agencies and
these were only used to guarantee coverage of temporary project assignments, maternity/paternity leave, or
situations of temporary, long-term disability. Redeia takes feedback from exit interviews, managers and the
various listening processes and uses it as inputs in designing actions plans to analyse the reasons after the
change.
Also, the redundancy incentive plan continued in 2024, with the number of departures amounting to 84% of
the maximum level stipulated under the terms of the plan. This plan falls under the employment initiatives
designed to attract external talent with the new skills and competencies required to advance Redeia's energy
transition and transformation.
By their nature, both the actions carried out during the reporting period and those scheduled for future periods
have an indefinite time horizon. Plan progress is reviewed periodically, with some of the above-mentioned
indicators used on a monthly basis. Taking the results of these reviews, the Company may fine-tune its
approach or adopt corrective measures to ensure achievement of the defined objectives. These actions do
not require any specific resource allocation beyond the general human resources assigned to the team
overseeing implementation.
Remuneration regime
Redeia rewards its employees in all the countries in which it operates in accordance with the general principles
of its remuneration model, which meets the unified criteria of:
•
Internal equity and external competitiveness.
•
Consistency with the organisational and development model.
•
Opportunities for further wage growth.
•
Separate recognition of outstanding contributions.
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All of the above are implemented with strict regard to prevailing legislation in each territory and ensuring
equality and non-discrimination in each case.
Redeia rewards its professionals under principles of equity and fairness, based on their level of responsibility
and professional experience. The annual salary review processes differentiate on the basis of the contribution
made over the year and the results of their achievements, and never on the basis of gender, age, origin, sexual
orientation and identity, religion or race, thus ensuring non-discrimination when implementing remuneration
practices and policies.
The remuneration regime is designed to retain, motivate and engage employees, helping he Group to achieve
defined objectives and ensuring that it executes its strategy. Redeia applies a total remuneration regime that
includes both tangible (financial) and intangible items. Tangible items include fixed remuneration, variable
remuneration, recognition programmes, employee perks, and flexible pay arrangements. Intangible items
include non-wage benefits, work-life balance, performance and recognition, development and career
opportunities.
Redeia has also implemented a flexible remuneration regime that can be configured to deliver bespoke
remuneration tailored to employees in Spain, including products such as health insurance, training, life
insurance, public transport cards, luncheon vouchers and childcare vouchers. There are also specific
compensation programmes adapted to the Company's activity, the long-term incentive plan (LTIP) related to
fostering the energy transition, bridging the digital divide and diversification, and the exceptional incentive plan
linked to delivery of investment milestones in Redeia's Strategic Plan. With the aim of increasing wage
transparency, various training sessions on remuneration were held with the organisation's leaders.
By their nature, both the actions carried out during the reporting period and those scheduled for future periods
have an indefinite time horizon. Plan progress is reviewed periodically, using management indicators on an
annual basis. Taking the results of these reviews, the Company may fine-tune its approach or adopt corrective
measures to ensure achievement of the defined objectives. These actions do not require any specific resource
allocation beyond the general human resources assigned to the team overseeing implementation.
Work-life balance and flexibility
A real and effective timetable of between 1,686 and 1,690 hours per annum is established for 70% of the
workforce, with a basic 7-hour day schedule on every working day of the year, and considerable flexibility as
to starting times (from 07:30 a.m.) and finishing times (from 2:00 p.m.).
Workers may also request a reduction in the annual working hours in cases of birth, adoption, foster care or
adoption, care of a child under 13 years of age or persons with disabilities or illness. In the event of exceptional
personal and health situations, working hours may be adapted to the specific needs of the employee
concerned.
The Company also has a strong commitment to the work-life balance of its employees. An example is the
implementation of a hybrid working system, to which 83.7% of the eligible workforce (68.3% of the total
workforce) is adhered, allowing employees to work remotely on around 47% of their annual working days.
Under the system, employees can work from up to two different locations.
To uphold its work-life balance commitment, the Company provides a time management system to employees
so they can record their working hours. This system was upgraded in 2024 with new features to make the time
log more efficient. In addition to recording hours worked, the system ensures that any extra time accrued by
eligible groups (e.g., shifts and flexibility schemes) is accurately tracked and remunerated. In the various
collective bargaining agreements applicable to the Group's companies, Redeia has defined specific
procedures for managing working hours and overtime, ensuring compliance with applicable labour law. These
measures reflect the Company's commitment to maintaining appropriate working time management.
Additionally, since 2021, the Digital Disconnection Protocol defines the requirements for exercising the right
to disconnect, along with training and awareness initiatives on the responsible use of digital tools. With this
protocol, together with the flexible working hour arrangements, employees can enjoy a healthy balance
between their personal and professional lives.
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Redeia's work-life balance management model is a key pillar of both its healthy organisation model and its
diversity model. The model includes over 70 work-life balance measures with associated actions, structured
into the following areas: leadership and management styles, quality of employment, flexible working time and
workplace, family support, personal and professional development, equal opportunities, and enhanced leave
and entitlements under collective bargaining agreements compared to legal requirements.
In 2024, the work-life balance officer provided personalised responses to over 89.3% of the personal
situations raised by workers. Redeia shares its experience and expertise at the Observatory for a Healthy
Work-Life Balance and Shared Parental Responsibility, which is headed up by Universidad Pontificia de
Comillas (ICADE-ICAI). The observatory conducts applied, high quality and interdisciplinary research so as to
offer companies and institutions alike relevant information and reliable data that have been benchmarked
against international standards, thus enabling other organisations to fashion their work-life balance policies.
By their nature, both the actions carried out during the reporting period and those scheduled for future periods
have an indefinite time horizon. Plan progress is reviewed periodically, using management indicators on a
four-monthly basis. Taking the results of these reviews, the Company may fine-tune its approach or adopt
corrective measures to ensure achievement of the defined objectives. These actions do not require any
specific resource allocation beyond the general human resources assigned to the team overseeing
implementation.
Management-employee relations
Regarding freedom of association, the existence of works councils and information, consultation and
participation rights for workers, Redeia guarantees the right to trade union membership, association and
collective bargaining within the framework of the International Labor Organization (ILO) conventions, the
Spanish Constitution, prevailing labour law, and the applicable collective bargaining agreements. In addition,
Redeia's Code of Conduct and Ethics explicitly enshrines respect for the right to collective bargaining and
freedom of association, which is reiterated and embodied in Redeia's pledge to promote and ensure respect
for human rights.
Redeia's workers' representatives comprise 98 people—13 women and 85 men. There were no collective
disputes or strikes at any Redeia company in 2024 and no collective employment measures were
implemented, e.g., substantial modification of working conditions, employee furlough schemes or collective
dismissals, with the exception of the geographical mobility agreed with Eléctrica Infraestructuras en Canarias,
S.A.U.
Key highlights of 2024 include the negotiation, signing, and publication of the 2nd Collective Bargaining
Agreement of Redeia Infraestructuras de Telecomunicación, S.A., and negotiation of the geographical mobility
agreement for Red Eléctrica Infraestructuras en Canarias, S.A.U. Both agreements were approved
unanimously by their respective negotiating committees. Social dialogue was maintained within both
companies through the various negotiation committee meetings held.
Most of Redeia's workforce in Spain is covered by a collective bargaining agreement. The only exceptions are
management team members and employees who, voluntarily and irrevocably, accept the Company's proposal
for exclusion, within the limits set by each company's collective bargaining agreements. Internationally,
collective bargaining coverage is lower due to country-specific legislation, practices and customs.
Notably, Redeia does not comply with the requirements to set up a Societas Europaea (SE) Works Council,
or a Societas Cooperativa Europaea (SCE) Works Council.
Both actions carried out during the reporting period and those scheduled for future periods have a specified
time horizon in line with the terms of the applicable collective bargaining agreements. Throughout their
duration, periodic reviews of the progress of these actions are conducted using management indicators and
feedback from meetings of existing committees with workers' representatives held over the course of the year.
Taking the results, the Company may modify its approach or adopt corrective measures to ensure
achievement of the defined objectives. These actions do not require any specific resource allocation beyond
the general human resources assigned to the team overseeing implementation.
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Health and safety
Redeia has a concrete strategy and action plan to ensure the health and safety of its own and third-party
employees, i.e., the 2024-2025 Workplace Safety and Wellness Plan, which contains several strategic and
specific objectives and is articulated around four major lines of initiative:
1. Culture and leadership
o Enhance training.
o Enhance the management of lessons learned.
o Foster inclusiveness.
o Entrench the culture of prevention.
o Promote leadership in prevention and wellbeing.
o Prevent from a gender perspective.
2. Innovation and digitalisation
o Systematic innovation in Occupational Health and Safety (OHS).
o Redesign processes.
o Reduce impacts on digitalisation.
o Tackle climate change risks.
3. Wellbeing
o Deploy the wellbeing model.
o Evaluate and act on mental health.
4. Stakeholder engagement
o Align criteria and raise preventive standards of contractors.
o Manage relationships with governments.
o Share experiences with peers.
These objectives not only seek to enhance employees' health and safety but to foster a broader culture of
prevention and wellbeing across the entire organisation. To that end, the plan promotes best practices around
occupational risks on the job. Its goal is to go beyond legal compliance by training, educating and raising
awareness around duties and responsibilities and getting all employees, partners and suppliers involved in
the occupational safety effort.
Redeia also draws up an annual safety plan, which outlines strong risk prevention and mitigation measures
based on individual job risk assessments. This helps provide all the means and resources needed to perform
professional duties in the best possible safety conditions.
Redeia also promotes safety through the supply chain, ensuring that all suppliers working on its premises are
certified and qualified in OHS. In 2024, contractors had an accident severity rate of 0.38 and an injury
frequency rate of 6.94, with no fatalities.
Since 2023, Redeia has been implementing its own, cutting-edge wellness model and strategy, making it a
pioneer in this field. This model views employee wellness from a holistic and global perspective, establishing
five central pillars (physical, emotional, professional, social and financial wellbeing) that include the various
initiatives the Company offers its people to ensure their wellbeing. The model also provides measurement
systems for assessing the value proposition or range of initiatives made available to people and gauging each
individual's self-perception as to their level of wellbeing. Armed with this information, the Company can then
measure the level of satisfaction with the Company's proposition.
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In addition, to offset negative impacts, the 2024–2025 Workplace Safety and Wellness Plan includes actions
to promote best OHS practices on the job and at sites. To this end, higher risk tasks and activities are
monitored on an ongoing basis through safety inspection programmes, as well as stricter supplier qualification
requirements, which are essential to achieving the high levels of safety required. A total of 16,054 safety
inspections were carried out in 2024 on sites and facilities in order to anticipate and detect possible risk
situations and prevent accidents from occurring. As a result of all the activities performed to control and
monitor works, over 1,271 corrective actions were required, of which 89% were resolved while the rest are in
the process of being resolved.
With the collective lessons learned from the outcomes of these corrective actions, all value chain participants
can enhance their OHS processes, strengthening their preventive culture by sharing new knowledge. As part
of the commitment to build prevention into Redeia's processes and culture on the path to achieving the "zero
accidents" objective in the 2024-2025 Workplace Safety and Wellness Plan, several actions were
implemented to improve communication and raise awareness, adopt new technologies, and advance digital
transformation. Key initiatives this year included the OHS Days for Redeia employees in Spain and Chile-
Peru, held in recognition of World Day for Safety and Health at Work; five awareness sessions on coordination
of discharges at shared facilities; the creation of the 'Positive Safety' community, comprising over 130 industry
professionals from more than 40 companies; and implementation of the SERPAT ergonomic grounding
system. These actions build on those carried out in previous years, resulting in stable overall accident rates,
including both own employees (severity rate: 0.13) and contractors (severity rate: 0.38).
By their nature, both the actions carried out during the reporting period and those scheduled for future periods
have a time horizon of 2024-2025. Plan progress is reviewed periodically, with some of the above-mentioned
indicators used on a monthly basis. Taking the results of these reviews, the Company may fine-tune its
approach or adopt corrective measures to ensure achievement of the defined objectives. These actions do not
require any specific resource allocation beyond the general human resources assigned to the team overseeing
implementation.
For its own workforce, Redeia preventively monitors health an ongoing basis, conducting health campaigns
in response to analysis of the various health indicators evaluated annually. The health and wellness activities
and initiatives are designed to promote health from a holistic perspective (physical, emotional, and social
health). Key initiatives include medical check-ups, consultations on healthy nutrition, assessments of physical
fitness, promotion of physical activity, prostate cancer prevention, physiotherapy consultations, flu shots, and
the EMOCIÓN emotional management training project. All this is part of Redeia's own, cutting-edge wellness
model and strategy, which takes a holistic and comprehensive approach to employee wellbeing. This model
demonstrates the Company's strong commitment and makes it a pioneer in this field.
Equality
On the diversity front, the Company seeks to inspire and become a benchmark both within Redeia itself and
the wider social, labour and human environment, through the commitment to talent diversity, social inclusion,
employment and non-discrimination, breaking down stereotypes and cultural barriers.
That is the mission of the 2023-2025 Comprehensive Diversity Plan, the goals of which are to:
•
Embed diversity in Redeia's people management, instilling a culture of diversity, equal opportunities,
inclusion and non-discrimination.
•
Extend the diversity, equity and inclusion strategy across the entire value chain.
•
Partner with official organisations, academic institutions, stakeholders and other social agents in
campaigns, observatories and projects that will allow the Company to become a benchmark social agent
that helps to create a more diverse society.
•
Reduce any inequalities that may arise (corporate and wage or digital gaps).
•
Put mechanisms in place to prevent discriminatory bias.
•
Support the inclusion of socially excluded and/or vulnerable people within the job market.
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171
It also sets two targets, one for equality and one for disabilities:
•
To have 38% of the management team female and women account for 31% of the workforce
•
To achieve at least 40% of the minimum legal requirement (2%) of direct hiring of people with disabilities
and increasing by 20% the volume managed via Special Employment Centres for the provision of services
at Redeia
Gender equality is a key topic under the Comprehensive Diversity Plan and includes the principles of equal
employment opportunities, the promotion of women to positions of responsibility, the promotion of shared
caregiving responsibilities, the prevention of harassment on moral, sexual and gender grounds, the prevention
of gender-based violence, and equal pay between men and women. Performance in these areas is monitored
through a dashboard, which allows the Group to measure the progress towards achieving stated objectives.
As for equal pay, criteria are applied in remuneration processes that ensure that all remuneration practices
are non-discriminatory, with no biases whatsoever on the basis of gender, age, origin, sexual orientation,
gender identity, religion and race, among others, thus guaranteeing absolute non-discrimination in the
application of remuneration practices and policies.
Following the entry into force of Royal Decree 902/2020 in 2020, on equal pay for women and men, the
Company has been keeping an annual pay register, which is available to the workers' legal representatives.
Similarly, Redeia actively promotes gender equality as part of its 2023-2025 Comprehensive Diversity Plan to
mitigate the potential negative impact of unequal opportunities caused by the gender gap in its workforce. The
aim is to enhance wellbeing at work by fostering an environment that supports work-life balance and strongly
supports diversity of knowledge, experience, and gender.
In 2024, as a result of Redeia's commitment to equality, the percentage of women in the workforce increased
to 29.0% (from 28.9% in 2023) and the percentage of women in leadership positions to 37.1% (from
36.2%). These figures are monitored quarterly in the Sustainability Plan progress report and reported on a
half-yearly basis to the Appointments and Remuneration Committee and the Board Sustainability
Committee.
By their nature, both the actions carried out during the reporting period and those scheduled for future periods
have a time horizon of 2024-2025. Plan progress is reviewed periodically, with some of the above-mentioned
indicators used on a monthly basis. Taking the results of these reviews, the Company may fine-tune its
approach or adopt corrective measures to ensure achievement of the defined objectives. These actions do
not require any specific resource allocation beyond the general human resources assigned to the team
overseeing implementation.
Initiatives to generate positive impacts
Beyond actions to offset negative impacts, the Company develops new initiatives to generate positive
impacts. Examples include recognition programmes linked to the talent differentiation process, in which the
contributions made by all employees are recognised through remuneration processes that reward the effort,
responsibility and commitment shown by all workers to the various annual activities planned and the
Company's own objectives. There are also recognition programmes in place to reward those employees who
come up with innovative and efficient ideas, or help the Company to raise revenue.
Other initiatives in place to generate positive impacts include actions to reduce the pay gap, or the 2024-2030
Disability Plan, designed to set out measures and actions for the direct hiring of 40 people with disabilities by
2030.
Identifying the pay gap is one aspect related to generating positive impact. Redeia has a methodology for
calculating the adjusted pay gap that delves deeper into the reasons for the gender pay gap, thus allowing
the organisation to detect any adjustments that may be needed in order to monitor the situation and narrow
the gap. In 2024, a more detailed job evaluation was conducted as part of the adjusted pay gap calculation
process. This provided a more accurate job levelling and better identification of the 'explanatory' variables
behind the difference in pay differences between men and women beyond gender, e.g., level of contribution,
length of service, performance, experience, eligibility for extras, country of employment. Notably, the adjusted
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pay gap methodology delves deeper into the reasons for the gender pay gap, thus allowing the organisation
to detect any adjustments that may be needed in order to monitor the situation and narrow the gap. To achieve
this, a mathematical correlation analysis is used, in which the internal variables that have the greatest impact
on pay are identified, and the gap is then recalculated by eliminating the effect of significant variables such as
country, level of responsibility and/or role across the various positions, length of service, and so on.
The 2024-2030 Disability Plan covers different aspects related to disability, contributing not only to the social
and occupational integration of people with disabilities, but also to the awareness among Redeia staff of this
hugely important issue for the Company. Additionally, it drives this social and occupational inclusion of people
with disabilities by hiring through Special Employment Centres, with a target of increasing this volume by 20%
by 2025, or by launching a programme to provide professional experience opportunities for university and
vocational training students with disabilities.
Redeia is also working on a forward-looking talent development model that anticipates future talent
needs so that the organisation is capable of tackling the challenges outlined in the 2021-2025 Strategic Plan
in an ever-changing environment. The objective is to drive cultural transformation and sustainably manage a
diverse and engaged workforce. This is achieved by instilling an innovative, agile, and collaborative culture,
empowering employees through self-leadership to build a more resilient organisation capable of tackling the
defined challenges, and focusing on the entire employee life cycle to attract top professionals, streamline
workforce planning, and position Redeia itself as an employer of choice.
Meanwhile, the Company intends to develop (or is currently developing) new initiatives to prevent material
negative impacts on its employees, such as:
•
Talent differentiation, focusing on engagement and recognition. Redeia differentiates and segments
employees based on their performance, effectively separating the assessment of contribution from the
evaluation of key skills development. Feedback plays a crucial role in both, providing employees with
multiple sources of insight to help them track the progress of their contribution or their skills. Agile feedback
conversations ensure that projects and performance are monitored on a continuous basis throughout the
year. The contribution conversation rounds off the formal annual appraisal. It is one of the key milestones
in the people management process, providing a crucial moment for reflection on the past year's
performance and focusing on the challenges of the next year. The conversation helps pinpoint areas for
improvement and guide employees towards the achievement of set objectives, thereby helping drive their
development.
The differentiation process is designed to identify employees who deliver exceptional value and have the
potential to enhance this impact in the future, as well as employees who are not contributing adequately
to the organisation. This model integrates elements of financial recognition, as well as emotional
recognition, such as additional days off or participation in projects and working groups that raise the
visibility of employees within the organisation. The process also includes the deployment of several
actions, including: the Talentia programme, designed as a development tool and space for cohesion and
tearing down functional barriers targeting 69 high-potential non-executive employees who may take on
leadership or managerial roles in the future; the manager skills development programme, designed to
improve the management of teams with a programme for employees who, following internal mobility or
promotion, have taken on a managerial role (16 participants in 2024); or individual development plans
(IDPs), for personalised career development—39 employees worked on defining their IDP in 2024.
•
Age management actions under the Comprehensive Diversity Plan. These seek to achieve effective
labour inclusion of all employees—regardless of their age or generation—through initiatives that value
experience, training, knowledge and other conditions that enable them to realise their full personal and
professional potential. One highlight was the voluntary redundancy incentive plan, offered to employees
63 and older. This plan falls under the employment initiatives designed to attract external talent with the
new skills and competencies required to deliver the stated objectives in Redeia's 2021-2025 Strategic
Plan. In 2024, the number of departures amounted to 84% of the maximum level stipulated under the
terms of the plan. This plan supports employees throughout their departure. Since 2019, in response to
digitalisation and the evolution or phasing out of certain job roles, the Company has been implementing
reskilling initiatives, primarily targeting older employees, to redirect functions and adapt profiles. This
enables these employees to take on new roles with the skills they have acquired.
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173
•
Prevention and promotion of health and improvement in wellbeing, with a range of initiatives,
including for example medical check-ups, consultations with medical professionals and nurses,
consultations on health nutrition, and assessments of physical fitness. Mandatory health check-ups were
expanded in 2024 to cover all employees in control centres who work in shifts. Meanwhile, improvements
were introduced to hybrid working conditions for pregnant employees, and the Company launched both
the wellbeing model awareness campaign and a new wellbeing assessment initiative. The 360-degree
wellbeing assessment consisted of a comprehensive analysis of the workforce covering five core pillars:
physical, emotional, financial, social, and professional wellbeing. The process included a self-perception
survey in which each person assessed their wellbeing again these five pillars to obtain an overall and an
individual wellbeing rating, used to pinpoint specific areas of improvement. The survey also produced a
"healthy habits passport", which includes individual actions that can be taken to raise the person's
perception of wellbeing.
•
Active participation in OHS in our value chain, with the creation of the Positive Safety community with
the ecosystem of construction and maintenance suppliers. It started off with a session attended by 130
people from 41 companies aligned with the Me cuido, te cuido y me dejo cuidar (I take care of myself, I
take care of you and I let myself be taken care of) purpose and the launch of Positive Safety initiatives,
embodied in a series of safety rituals to connect Redeia with its suppliers driven by both parties.
•
Training and awareness on work-related hazards, with actions such as:
– Professional training sessions for the own workforce
– Certification of Redeia suppliers' staff in the local operation of substations
– Awareness sessions on coordination of discharges at shared facilities, aimed at raising awareness of
preventive measures for at-risk third-party work
– OHS communications, featuring a video highlighting OHS initiatives and news on ergonomic
improvements for control and protection staff in relay cabins
– Fire risk awareness campaign, launched to coincide with World Wildfire Prevention Day
– Safety awareness sessions for suppliers of clearing, felling, and pruning, electromechanical assembly
and vacuum substation testing services
– Webinar on safety awareness at work on local substation operations for brigade service employees
•
Training and awareness on equality, including the 6th Women's Week, focused on feminine diversity.
Emotional wellbeing and shared responsibility or training in management techniques with targeted
programmes for driving the development of women towards positions of greater responsibility, such as: the
CEOE's Promociona, Proactiva, and Progresa programme and the Antonio de Nebrija University's
Women's Leadership programme.
•
Communications-related initiatives, such as the EnRedes programme designed to raise the Company's
profile in social media through employees chosen as digital ambassadors. The aim is to improve the
Company's visibility and reputation by leveraging the employees' influence on social media. Active
participation by senior management in this initiative is a testament to Redeia's commitment to this
programme. Another communications initiative developed during the year was Festival of Ideas, designed
to create a space for reflection on the importance of connectivity. Open to all Redeia employees, the event
features the participation of the Chairwoman.
Training and communication of own workforce on climate change
The Company's activities include integration of renewable energy into the electricity system and connectivity.
Neither requires a transition to decarbonised activities. Therefore, there are no negative impacts on the own
workforce arising from the transition to more sustainable activities. Accordingly, no actions to mitigate such
impacts were adopted.
A key priority of the Company's Climate Change Action Plan is the reduction of SF6 emissions. To achieve
this, Redeia provides employees specialised training programmes on leak control and reduction. The
Company is legally certified to deliver training on handling SF₆ gas. A total of 541 employees have been trained
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since 2013, with 444 officially certified. Moreover, dedicated technical training sessions on GIS technology
were held to enhance maintenance and leak repair.
Impacts and actions related to the Climate Change Action Plan are disclosed to employees primarily through
the Group's Sustainability Report, although other tools are available, e.g., the corporate intranet.
Assessing and tracking actions
Redeia employs various tools, including dashboards, to track progress and assess the effectiveness of these
initiatives. The talent differentiation process dashboard provides a clear view of employees' contributions and
capabilities, segmenting them into different performance levels and tracking progression by organisational
unit and individual levels. The risk prevention dashboard is a comprehensive tool for OHS management and
monitoring. It tracks KPIs and includes functionalities that enable detailed tracking of OHS-related aspects.
Key Indicators include accident rates, the inspection frequency rate, the inspection anomaly rate, the risk
control rate, and the Bird's triangle, which provides a graphical representation of the relationship between
minor incidents, lost-time accidents, and major accidents, offering insight into safety conditions at the
Company.
These dashboards provide a visualisation—through metrics—of trends in KPIs and the impact of the
Company's actions on them.
Where performance does not meet expectations, the potential causes for the underperformance are analysed
and corrective actions are designed, then set out in an action plan for improvement. The affected areas and
the necessary human and financial resources are allocated to ensure the plan is implemented.
In 2024, a 38-person team was involved, with functions including managing material impacts.
With a focus on preventing potential violations, the Company systematically analyses and reinforces its
policies, commitments, and control mechanisms to minimise risk of occurrence, ensure respect for human
rights, and remedy possible human rights abuses. 2024 was a year of advances in human rights, with the due
diligence process showing once again that the Company carries a low level of risk and runs suitable controls.
As a result, there have been no human rights abuses and so no remedial action has proved necessary to
date.
11.3.1.3 Metrics and targets
a. Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities. S1-5 and MDR-T
The Company considers both absolute and relative targets, as well as the appropriate units of measure
depending on the type of defined objective. For each target, a baseline value and base year are defined from
which progress is measured to ensure precise and consistent evaluation.
The methodologies and significant assumptions used to define targets are aligned with national, EU or
international policy goals and how the targets consider the wider context of sustainable development and/or
local situation in which impacts take place. Given the nature of the objectives, there was no need to base them
of scientific evidence to ensure their rigour and validity.
Any changes in targets and corresponding metrics or underlying measurement methodologies, significant
assumptions, limitations, sources and processes to collect data adopted within the defined time horizon are
documented with an explanation of the rationale for those changes and their effect on comparability.
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175
Impacts
ESRS subtopic
ESRS sub-subtopic
Impact
Target
Working conditions
Secure employment
Permanent contracts
To achieve an annual voluntary turnover rate equal to or below
2%
Working conditions
Adequate wages
Definition of adequate wages
To reduce the adjusted pay gap of 0.08% considering Redeia's
corporate structure at year-end 2023
Working conditions
Adequate wages
Recognition of the contribution made
by employees through remuneration
processes and a total compensation
regime
To create a knowledge map covering 100% of the positions
within the organisation categorised by professions, roles, and
job positions, and identification of the Company's critical
positions
Working conditions
Collective bargaining, including
rate of workers covered by
collective agreements
Improved working conditions through
collective bargaining
To have no more than 8% of employees without collective
bargaining coverage (applicable to each company with its own
collective bargaining agreement)
Working conditions
Health and safety
Impact on employee health of injuries
caused by certain occupational
activities
To reduce the Group's accident severity rate by 0.10 points
compared to the 2018-2022 period (0.64)
Working conditions
Health and safety
Favouring employee wellbeing by
means of the healthy organisation
management system and the
prevention of occupational injuries or
illnesses
To raise the perception of wellbeing by 15% from the previous
year
Working conditions
Health and safety
Fatalities caused by certain
occupational activities
To keep the Group's accident severity rate below 0.5
Equal treatment and
opportunities for all
Diversity
A diverse and inclusive workplace that
fosters employee wellbeing and
generates fair opportunities
To deliver at least 40% of the legal requirement (2%) for the
direct hire of people with disabilities
Equal treatment and
opportunities for all
Diversity
Lack of equal opportunities due to the
gender gap at Redeia
To have 38% of the management team female and women to
account for 31% of the workforce by 2025
Equal treatment and
opportunities for all
Gender equality and equal pay
for work of equal value
Fair monetary compensation and
elimination of gender inequalities
To reduce the adjusted pay gap of 0.08% considering Redeia's
corporate structure at year-end 2023
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Risks and opportunities
ESRS subtopic
ESRS sub-
subtopic
Risk/Opportunity
Description of the cause of the risk/opportunity
Target
Working conditions Health and
safety
Risk
Possible increase in operating expenses due to an
increase in economic contingencies and in the related
insurance premiums, potentially affecting, in part,
Redeia's profitability. Moreover, a significant volume of
claims could indicate underlying problems in
occupational safety management, which could lead to
additional costs related to mitigation and safety, as well
as reputational damage for Redeia.
To keep the Group's accident severity rate
below 0.5
Working conditions Health and
safety
Risk
Vulnerability to significant financial losses as a result of
inadequate insurance coverage in the event of damages
such as workplace accidents
To keep the Group's accident severity rate
below 0.5
Working conditions Adequate
wages
Opportunity
Delivery of employee expectations thanks to constant
review and updating of Redeia's total compensation
regime to ensure it remains competitive
To reduce the adjusted pay gap of 0.08%
considering Redeia's corporate structure
at year-end 2023
To create a knowledge map covering
100% of the positions within the
organisation categorised by professions,
roles, and job positions, and identification
of the Company's critical positions
Equal treatment
and opportunities
for all
Training and
skills
development
Opportunity
Increased investment in development and training, in
addition to a stronger workforce thanks to talent retention
To achieve an annual voluntary turnover
rate equal to or below 2%
Equal treatment
and opportunities
for all
Gender equality
and equal pay
for work of
equal value
Opportunity
Strengthening Redeia's position as a leader and
benchmark in gender equality
To have 38% of the management team
female and women to account for 31% of
the workforce by 2025
Equal treatment
and opportunities
for all
Employment
and inclusion of
persons with
disabilities
Opportunity
Increasing workforce diversity by integrating more
people with disabilities under the scope of Redeia's
Disability Plan
To deliver at least 40% of the legal
requirement (2%) for the direct hire of
people with disabilities
These targets have been defined within the framework of the People Operational Plan and the development
of the Sustainability Plan 2021-2025 linked to the Strategic Plan 2021-2025 and deployed through 17
operational plans.
The People Operational Plan, approved by the CEO and covering the 2021-2025 period, is based on the
Company's Strategic Plan and outlines two strategic initiatives entailing 11 lines of initiative comprising 43
actions. These lines of initiatives were taken into account when setting people-related targets in the
Sustainability plan to achieve full alignment.
After preparation of the people section of the zero draft of the Sustainability Plan, the validation phase of the
proposal began, involving all departments under the Corporate People and Culture Department so that there
was input from affected areas. After validation, the objectives were then approved by the People Officer and
integrated into Redeia's 2021-2025 Sustainability Plan, which was then approved by the Board Sustainability
Committee.
The objectives and associated actions are monitored quarterly, with each party in charge required to provide
a progress report and account of any potential impacts detected. This monitoring is designed for the early
detection of risks that could hinder execution within the established timeframe.
Meanwhile, highlights in the area of gender equality include the equality plans negotiated and agreed upon
with workers' representatives in accordance with applicable legislation, including Organic Law 3/2007, Royal
Decree-Law 6/2019, and Royal Decrees 901/2020 and 902/2020. These plans outline specific objectives and
measures to guarantee equal treatment and opportunities for women and men in the workplace.
The rest of the targets and objectives were set taking account of the concerns and interests of Redeia's own
workforce but without their or their legal representatives' direct participation in defining them or identifying
areas of improvement. Key stakeholders were also not involved in defining targets.
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177
The objectives and targets are implemented through concrete actions and agreed-upon deadlines. The actions
are detailed in the Sustainability Plan and documented in an "Equality Plan Monitoring" file accessible to the
relevant area managers. Progress and potential areas of improvement are set out in an annual report.
b.
Targets related to managing material impacts, risks and opportunities
i. Characteristics of the undertaking's employees. S1-6 and MDR-M
Total number of employees by headcount and breakdown by gender and by country
Gender
Breakdown of employees by gender
2024
2023
Men
1,768
1,762
Women
721
715
Other
0
0
Not disclosed
0
0
Total employees
2,489
2,477
Country
Breakdown of employees by
2024
Spain
2,042
Brazil
60
Colombia
139
Peru
135
Germany
31
Chile
40
Argentina
2
Ecuador
4
Mexico
29
United States
2
Greece
1
United Kingdom
4
Total employees
2,489
Breakdown of employees - Redeia
Total number of employees (no.)
2,489
Permanent employees (%)
99.3
Average length of service (years)
13.9
Overall external turnover rate (%)
6.7%
Breakdown of employees - Redeia (by company) (%)
Red Eléctrica
51.6
Hispasat
21.7
Redeia Corporación
17.4
Redinter
4.6
Reintel
3.1
Other companies
0.8
Elewit
0.7
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Consolidated Management Report for 2024
Breakdown of employees - Redeia (by type of operations) (%)
Electricity
52.3
Telecommunications
24.9
Corporate services
17.5
International
4.6
Technology
0.8
Total number of headcount or full time equivalent (FTE) of permanent employees and breakdown by
gender
2024
Men
Women
Other
Not disclosed
Total
Number of employees
1,768
721
0
0
2,489
Number of permanent employees
1,756
715
0
0
2,471
Number of temporary employees
12
6
0
0
18
Number of non-guaranteed hours employees
0
0
0
0
0
Number of full-time employees
1,749
682
0
0
2,431
Number of part-time employees
19
39
0
0
58
Total number of employees who have left the undertaking during the reporting period and the rate of
employee turnover in the reporting period.
2024
Total number of
Turnover rate
Men
Women
Men
Women
Under 30
14
15
13.0%
23.4%
30 to 50
49
20
4.3%
4.3%
Over 50
50
18
9.5%
9.3%
Overall turnover (1)
113
53
6.4%
7.4%
The persons affected by the impacts, risks and opportunities (IROs) described above, own workforce, are
both people who are in an employment relationship with Redeia (employees) and non-employees who are
either people with contracts with Redeia to supply labour (self-employed people) or people provided by
undertakings primarily engaged in "employment activities" (temporary employment agencies).
Not included are interns, as they fall under an educational framework focused on acquiring practical
knowledge and there is no formal employment relationship, or individuals who have a commercial relationship
with Redeia.
Note additionally that people indirectly linked to Redeia (non-employees) are primarily used to cover
maternity/paternity leave, or substitute employees in situations of temporary, long-term disability. Over the
past few years, these have represented just 1% of the total workforce and, therefore, are not considered a
material group for the purposes of this report.
Redeia's employees and their families are covered by HR policies and management, helping the Company
deliver its strategic objectives and tackle future challenges, and serving as key ambassadors for the
Company's image and reputation.
At 31 December 2024, Redeia had a total workforce of 2,489 people (see note 24, section D in the Group's
consolidated financial statements), an increase of 0.5% in the year.
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179
ii. Collective bargaining coverage and social dialogue. S1-8 and MDR-M
Percentage of total employees covered by collective bargaining agreements
Most of Redeia's workforce in Spain is covered by a collective bargaining agreement. The only exceptions are
management team members and employees who, voluntarily and irrevocably, accept the Company's proposal
for exclusion, within the limits set by each company's collective bargaining agreements. Internationally,
collective bargaining coverage is lower due to country-specific legislation, practices and customs. A case in
point is Brazil, where employees can voluntarily decide whether or not to be covered by the applicable
collective bargaining agreement. Redeia has its own collective bargaining agreements at three of its
companies, Red Eléctrica de España, S.A.U., Redeia Corporación, S.A. and Redeia Infraestructuras de
Telecomunicación S.A. and none in the rest of the countries in the European Economic Area (EEA) where
the Company operates.
2024
Employees covered by a collective bargaining
Spain
91.7%
Brazil
84.4%
Total
82.6%
2024
Collective bargaining coverage and social dialogue
Employees - EEA (for
countries with >50 empl.
representing >10% total
empl.)
Employees - Non-EEA (for
countries with >50 empl.
representing >10% total empl.)
Workplace representation (EEA only)
(for countries with >50 empl.
representing >10% total empl.)
0-19%
20-39%
40-59%
Peru
60-79%
80-100%
Spain
Brazil
Colombia
Spain
Percentage of employees represented by workers' representatives
Employees covered by workers' representatives (%)
2024
Total
99.0%
Spain
99.0%
As illustrated in the preceding table, employees are covered by workers' representative. Nevertheless, Redeia
does not meet the requirements to set up a Societas Europaea (SE) Works Council or a Societas Cooperativa
Europaea (SCE) Works Council.
iii. Diversity metrics S1-9 and MDR-M
Gender distribution in number and percentage at top management level*:
No.
%
2024
Men
8
57.1%
Women
6
42.9%
Total
14
100%
(*) In accordance with article 4 of the Regulations of the Board of Directors, senior executives are "for the purposes of these Regulations, the executives
reporting directly to the Board, the chair or the CEO and, in any case, the internal auditor".
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Distribution of employees by age group (under 30 years old; 30-50 years old; over 50 years old)
Total number of employees by age group and gender
2024
2023
Men
Women
Total
Men
Women
Total
Under 30
108
64
172
105
77
182
30 to 50
1,131
464
1,595
1,149
461
1,610
Over 50
529
193
722
508
177
685
Total
1,768
721
2,489
1,762
715
2,477
iv.
Adequate wages S1-10
Redeia is committed to guaranteeing decent pay for all employees and remuneration that in any case exceeds
guaranteed basic income.
All employees in every country where the Company operates are paid adequate wages, above the established
minimum wage in each.
This approach not only ensures that basic needs are met but also supports a good quality of life across the
countries in which the Group operates.
v. Social protection S1-11
All employees are covered by social protection against loss of income due to major life events, such as
sickness, unemployment, employment injury and acquired disability, parental leave and retirement.
vi. Persons with disabilities. S1-12 and MDR-M
The Comprehensive Diversity Plan (CDP) is one of the most important strategies for instilling a culture based
on equality, sustainability, adaptation to change, innovation and talent management, with global reach,
covering all business activities and geographical areas in which Redeia operates.
The Company currently has 27 employees with a disability of a severity equal to or greater than 33% (1.1%
of total headcount), and at four companies the General Law on the Rights of Persons with Disabilities is
applicable, with all of them remaining fully compliant.
In addition, there are no employees with a disability subject to legal restrictions on the collection of data in this
regard.
Redeia aspires to not only comply with the applicable legal requirements, but to go one step further in
integrating people with disabilities, deepening its role as social agent in the field of diversity. Notably, it
contributes to the social and occupational inclusion of persons with disabilities by hiring, for part of the services
provided, through Special Employment Centres, with a target of increasing this volume by 20% by 2025; it
already delivered this after reporting a 32% increase in 2024. Beyond internal awareness campaigns, Redeia
takes part in various institutional and private campaigns to foster the inclusion of persons with disabilities in
the workplace. Of all these actions and initiatives, the main ones in 2024 were:
•
Launch of an Adecco Foundation mentoring programme for university and vocational training students
with disabilities, in which the Company's employees gave a 5-day training to a person with difficulties
finding a job during the year.
•
Signing of an educational collaboration agreement with A La Par Foundation to allow two students of the
foundation's FundaJobs employment service to take part in non-work professional internships with the aim
of training them for the qualified performance of the profession and increasing their employability, on top
of the training received at the Foundation.
•
Family Plan with personalised assistance to improve the social and occupational integration of family
members with disabilities of Redeia employees.
•
Plan Aflora to support employees eligible for a disability certificate.
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181
•
Corporate website using website accessibility criteria with Level AA conformance to Web 2.0 (WCAG 2.0)
of the Web Accessibility Initiative (WAI) and World Wide Web Consortium.
•
Inclusive recruitment process.
•
Corporate volunteering initiatives to raise awareness about the deaf communication through online sign
language training.
vii. Health and safety metrics. S1-14 and MDR-M
Percentage of own workforce covered by the company's health and safety management system, the
number of fatalities as a result of work-related injuries and work-related ill health, and the number
and rate of recordable work-related accidents:
2024
Occupational health and safety indicators
Men
Women
Total
Average number of employees
1,750.82
720.05
2,470.87
Hours worked ('000)
3,133,732
1,288,793
4,422,525
Number of accidents recorded
16
1
17
Employees
16
1
17
Non-employees
0
0
0
Rate of recorded accidents
100%
100%
100%
Employees
100%
100%
100%
Non-employees
0
0
0
Number of fatalities as a result of work-related injuries/work-related ill
health
0
0
0
Employees
0
0
0
Non-employees
0
0
0
Other workers at Redeia's sites
(e.g., value chain workers)
0
0
0
Number of accidents
10
1
11
Days lost to accidents (1)
532
22
554
Injury frequency rate
3.19
0.78
2.49
Accident severity rate
0.17
0.02
0.13
Number of cases of work-related ill health
0
0
0
Days lost to non-work-related ill health (a)
1.69%
1.88%
1.75%
Days lost to health and safety (b)
1.78%
1.93%
1.82%
Own workforce (employees and non-employees) covered by the
health and safety management system (%)
100
100
100
(1) The calculation is based on 6,000 working days for a fatal accident and 4,500 days for total permanent disability.
(a) Days lost to non-work-related temporary disability > 3 days + Days lost to temporary disability < 3 days/average number of employees x 365 x 100.
(b) Days lost to non-work-related temporary disability > 3 days + Days lost to temporary disability > 3 days + days lost to work-related accidents and
ill health/average number of employees x 365 x 100.
viii. Compensation metrics (pay gap and total compensation). S1-16 and MDR-M
Redeia rewards its employees in all the countries in which it operates in accordance with the general principles
of its remuneration regime, which meets the unified criteria of:
•
Internal equity and external competitiveness.
•
Consistency with the organisational and development model.
•
Opportunities for further wage growth.
•
Separate recognition of outstanding contributions.
All of the above are implemented with strict regard to prevailing legislation in each territory and ensuring
equality and non-discrimination in each case.
Redeia rewards its professionals under principles of equity and fairness, based on their level of responsibility
and professional experience. The annual salary review processes differentiate on the basis of the contribution
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Consolidated Management Report for 2024
made over the year and the results of their achievements, and never on the basis of gender, age, origin, sexual
orientation and identity, religion or race, thus ensuring non-discrimination when implementing remuneration
practices and policies.
Pay gap
2024
2023
2022
Gross pay gap (%)*
5.51%
9.33%
7.35%
Adjusted pay gap (%)**
2.75%
5.00%
5.10%
Difference of average pay levels between men and women
94.49%
90.67%
92.65%
Note. The figures above include Hispasat. Figures for Hispasat in 2024: Gross pay gap: 13.08%; adjusted pay gap: 6.34%; Difference of average pay
levels between men and women: 86.92%
(*) Gross gap pay calculated for 2024 and recalculated for previous years in accordance with the requirements of the new regulation on the
calculation methodology of ESRS. The key difference between the new and previous calculation methodology is the use of the median. It also
excludes non-salary items.
(**) The adjusted pay gap was not recalculated for years before 2024 using the new calculation methodology. It starts with the same wage items as for
the gross pay gap, but excludes any type of salary payments effectively received by the workers. The gap is recalculated stripping out the impact of
major variables, e.g., country, level of responsibility and/or function in the different positions, length of service, etc.
Gross pay gap:
Redeia calculated the gross pay gap using the metrics stipulated in the standards, using the following
approach:
•
The calculation of the pay gap includes "gross annual remuneration", comprising the basic salary and any
other remuneration, whether in cash or in kind which the worker receives directly or indirectly in respect
of his/her employment from his/her employer in accordance with the standards.
Note. Includes any salary payments effectively received by workers: fixed remuneration (including both base salary and personal allowances),
role-related supplements, payments in kind, variable remuneration, and overtime, but excludes non-salary payments.
•
The formula used is as follows:
[𝑮𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒎𝒆𝒏 – 𝑮𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒘𝒐𝒎𝒆𝒏]
𝑮𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒎𝒆𝒏
– "Pay level" refers to the median remuneration of employees. In other words, the wage at the midpoint
between two equal groups of employees, i.e., that divides employees into two equal groups: the half
the earns more than this amount and the half that earns less. Therefore, the pay gap is defined as the
difference between the median remuneration of women and men divided by the median remuneration
of men.
– Lastly, Redeia standardises salaries based on annual working hours so that they are statistically
comparable.
𝑴𝒆𝒅𝒊𝒂𝒏 𝒕𝒐𝒕𝒂𝒍 𝒂𝒏𝒏𝒖𝒂𝒍 𝒈𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒎𝒆𝒏 – 𝑴𝒆𝒅𝒊𝒂𝒏 𝒕𝒐𝒕𝒂𝒍 𝒂𝒏𝒏𝒖𝒂𝒍 𝒈𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒘𝒐𝒎𝒆𝒏 𝒙 𝟏𝟎𝟎
𝑴𝒆𝒅𝒊𝒂𝒏 𝒂𝒏𝒏𝒖𝒂𝒍 𝒎𝒆𝒅𝒊𝒂𝒏 𝒈𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒎𝒆𝒏
Adjusted pay gap:
In addition to the gross pay gap, to make further progress on wage transparency and analysing the gender
pay gap, in 2023 the adjusted pay gap was also calculated to learn more about the causes for these
differences, given that this calculation methodology allows them to be identified and allows for a more reliable
analysis.
Notably, the adjusted pay gap methodology delves deeper into the reasons for the gender pay gap, thus
allowing the organisation to detect any adjustments that may be needed in order to monitor the situation and
narrow the gap. To achieve this, a mathematical correlation analysis is used, in which the internal variables
Consolidated Management Report for 2024
183
that have the greatest impact on pay are identified, and the gap is then recalculated by eliminating the effect
of significant variables, e.g., country, level of responsibility and/or role across the various positions, tenure.
The adjusted pay gap starts from the same wage items as for the gross pay gap, i.e., the correlation model is
applied to "gross annual remuneration" for 2024.
Difference of average pay levels between men and women:
2024
2023
Difference of average pay levels
between men and women (%)*
94.49%
90.67%
(*) Considering the changes introduced by the new standards on the calculation methodology and that Redeia already report this indicator, the figures
were recalculated in accordance with the standards applicable for 2023 and 2022, respectively. The key difference between the new and previous
calculation methodology is the use of the median. It also excludes non-salary items.
The formula used is as follows:
𝑮𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒘𝒐𝒎𝒆𝒏
𝑮𝒓𝒐𝒔𝒔 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒎𝒆𝒏
Calculation of this indicator starts from the same wage items as for the gross pay gap, i.e., gross annual
remuneration.
It also uses pay level as defined for the gross pay gap.
Ratio of total remuneration to the highest paid individual in 2024
Ratio
6.04
Calculation of this indicator starts from the same wage items as for the gross pay gap, i.e., gross annual
remuneration.
The formula used is as follows:
𝑻𝒐𝒕𝒂𝒍 𝒂𝒏𝒏𝒖𝒂𝒍 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒕𝒉𝒆 𝒉𝒊𝒈𝒉𝒆𝒔𝒕 𝒑𝒂𝒊𝒅 𝒊𝒏𝒅𝒊𝒗𝒊𝒅𝒖𝒂𝒍
𝑴𝒆𝒅𝒊𝒂𝒏 𝒂𝒏𝒏𝒖𝒂𝒍 𝒓𝒆𝒎𝒖𝒏𝒆𝒓𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒂𝒍𝒍 𝒆𝒎𝒑𝒍𝒐𝒚𝒆𝒆𝒔 𝒆𝒙𝒄𝒍𝒖𝒅𝒊𝒏𝒈 𝒕𝒉𝒆 𝒉𝒊𝒈𝒉𝒆𝒔𝒕 𝒑𝒂𝒊𝒅 𝒊𝒏𝒅𝒊𝒗𝒊𝒅𝒖𝒂𝒍
ix. Incidents, complaints and severe human rights impacts. S1-17 and MDR-M
The human rights due diligence process performed in 2024 indicated that no human rights violation had
materialised, so there was no human rights abuse. Also, no cases of non-respect of the UN Guiding Principles
on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work or OECD
Guidelines for Multinational Enterprises were identified. This applies to both Redeia's own operations and its
relationships with third parties.
Meanwhile, the Company received four reports related to harassment and discrimination via its Ethics and
Compliance Channel in 2024. Of these, two were closed and two were still open the end of the reporting
period.
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11.3.2 ESRS S2 – WORKERS IN THE VALUE CHAIN
11.3.2.1 Strategy
a. Interests and views of stakeholders SBM-2
Value chain workers are a key group of stakeholders affected by Redeia's activities, as described in section
1.1.4 Strategy and business model; b) Interests and views of stakeholders SBM-2, taking account of their
interests, opinions and rights based on Redeia's strategy and business model.
In addition, in its 2030 Sustainability Commitment, Redeia intends to extend the Company's responsibility
commitment to all the links in the value chain, from employees to suppliers and customers, by forging
alliances, all underpinned by its model of good governance and integrity.
b. Material impacts, risks and opportunities and their interaction with strategy and business
model. SBM-3
Redeia's value chain workers could be materially affected by its activities. Therefore, they are considered a
key stakeholder group and as such their interests, opinions and rights have a significant impact for Redeia.
Identifying both positive and negative impacts helps work towards ongoing improvement in processes,
efficiency in controls and response times, contributing positively to the business and helping deliver the
Strategic Plan as scheduled. In this regard, the outcome of the process to identify impacts, risks and
opportunities in the double materiality assessment performed in 2024 led to the identification of one negative
impact, three positive impacts and no risks or opportunities, as explained in chapter 1.2 Materiality
assessment, section 1.2.4 Material impacts, risks and opportunities. SBM-3.
Impacts
Impact
Position in
the value
chain
Positive / Negative
Current / Potential
Time horizon (*)
Current/anticipated
effects on the business
model, value chain,
strategy and decision-
making
How the
impacts affect
people and the
environment
Interaction of
the impact with
strategy and
business
model
Link between
impacts and
business
activities and
relationships
Assessment of the
resilience of the strategy
and business model
regarding its capacity to
address material impacts
Consolidated Management Report for 2024
185
Injuries or
unhealthy
working
conditions for
workers at
Redeia
suppliers due
to the
absence of
adequate
protective
equipment
Direct or
indirect
suppliers
N
Current M
Value chain workers are at
risk of sustaining injuries or
unhealthy working
conditions when they do not
receive appropriate
personal protective
equipment and/or work in
dangerous environments
(e.g., removal of hazardous
waste) without
implementing protection
measures.
Impact on the
health of value
chain workers
The Code of
Conduct for
Suppliers
(contractual and
binding
document)
The impact is
linked to the
operations of
Redeia's
suppliers
Redeia integrates
processes and procedures
into its business model that
are aligned with the
Company's governance
based on the Code of
Conduct for Suppliers.
Where the Company
considers that a supplier
must meet minimum
requirements, it creates a
profile that the supplier
must pass before its
qualification.
As a mitigation and control
measure, Redeia also
performs social audits of
suppliers to verify their
compliance with the Code
of Conduct for Suppliers
and other applicable
legislation. An action plan is
triggered where a risk is
identified.
Redeia also has a system
for tracking incidents
identified in contract/order
execution and a reporting
channel where its suppliers
can inform us if they identify
any such impact.
Zero
tolerance for
forced labour
in Redeia's
supply chain
Direct or
indirect
suppliers
P
Current S
The idea behind getting
suppliers to endorse the
Code of Conduct for
Suppliers at the start of the
supplier screening,
certification and scoring
process is to ensure the
selection of suppliers that
are suitable for forming part
of Redeia's database. This
code, which is part of the
contractual documentation
as per the general
contracting conditions and
hails from Redeia's Code of
Conduct and Ethics,
establishes minimum
requirements around
ethical, social and
environmental matters
which all suppliers must
accept and comply with in
order to work with Redeia
and which suppliers must
extend to their own supply
chains.
Commitment to respect for
human rights and training
programme focused on
human rights management
in collaboration with the
Spanish chapter of the
Global Compact. In 2024,
Redeia did not receive any
claims related with human
rights abuses in its supply
chain; nor was any contract
or order cancelled on these
grounds.
Impact on the
working
conditions of
value chain
workers
The Code of
Conduct for
Suppliers
(contractual and
binding
document)
The impact is
linked to the
operations of
Redeia's
suppliers
Redeia integrates
processes and procedures
into its business model that
are aligned with the
Company's governance
based on the Code of
Conduct for Suppliers,
which includes "To
guarantee the non-
existence of any form of
forced or compulsory
labour".
Where the Company
considers that a supplier
must meet minimum
requirements, it creates a
profile that the supplier
must pass before its
qualification.
As a mitigation and control
measure, Redeia also
performs social audits of
suppliers to verify their
compliance with the Code
of Conduct for Suppliers
and other applicable
legislation. An action plan is
triggered where a risk is
identified.
Redeia also has a system
for tracking incidents
identified in contract/order
execution and a reporting
channel where its suppliers
can inform us if they identify
any such impact.
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Consolidated Management Report 2024
Zero
tolerance of
child labour in
Redeia's
supply chain.
Direct or
indirect
suppliers
P
Current S
The idea behind getting
suppliers to endorse the
Code of Conduct for
Suppliers at the start of the
supplier screening,
certification and scoring
process is to ensure the
selection of suppliers that
are suitable for forming part
of Redeia's database. This
code, which is part of the
contractual documentation
as per the general
contracting conditions and
hails from Redeia's Code of
Ethics and Conduct,
establishes minimum
requirements around
ethical, social and
environmental matters
which all suppliers must
accept and comply with in
order to work with Redeia
and which suppliers must
extend to their own supply
chains.
Commitment to respect for
human rights and training
programme focused on
human rights management
in collaboration with the
Spanish chapter of the
Global Compact. In 2024,
Redeia did not receive any
claims related with human
rights abuses in its supply
chain; nor was any contract
or order cancelled on these
grounds.
Impact on the
working
conditions of
value chain
workers
The Code of
Conduct for
Suppliers
(contractual and
binding
document)
The impact is
linked to the
operations of
Redeia's
suppliers
Redeia integrates
processes and procedures
into its business model that
are aligned with the
Company's governance
based on the Code of
Conduct for Suppliers,
which includes "To
guarantee the non-
existence of all forms of
child labour". Comply with
all laws, regulations and
international, national and
local declarations with
regard to the minimum age
for employment".
As a mitigation and control
measure, Redeia also
performs social audits of
suppliers to verify their
compliance with the Code
of Conduct for Suppliers
and other applicable
legislation. An action plan is
triggered where a risk is
identified.
Redeia also has a system
for tracking incidents
identified in contract/order
execution and a reporting
channel where its suppliers
can inform us if they identify
any such impact.
Guarantee
that hires are
fair and
uphold
existing
labour
standards
Direct or
indirect
suppliers
P
Current S
The idea behind getting
suppliers to endorse the
Code of Conduct for
Suppliers at the start of the
supplier screening,
certification and scoring
process is to ensure the
selection of suppliers that
are suitable for forming part
of Redeia's database. This
code, which is part of the
contractual documentation
as per the general
contracting conditions and
hails from Redeia's Code of
Ethics and Conduct,
establishes minimum
requirements around
ethical, social and
environmental matters
which all suppliers must
accept and comply with in
order to work with Redeia
and which suppliers must
extend to their own supply
chains.
Impact on the
working
conditions of
value chain
workers
The Code of
Conduct for
Suppliers
(contractual and
binding
document)
The impact is
linked to the
operations of
Redeia's
suppliers
Redeia integrates
processes and procedures
into its business model that
are aligned with the
Company's governance
based on the Code of
Conduct for Suppliers,
which includes "To
guarantee the non-
existence of all forms of
child labour". Comply with
all laws, regulations and
international, national and
local declarations with
regard to the minimum age
for employment".
As a mitigation and control
measure, Redeia also
performs social audits of
suppliers to verify their
compliance with the Code
of Conduct for Suppliers
and other applicable
legislation. An action plan is
triggered where a risk is
identified.
Redeia also has a system
for tracking incidents
identified in contract/order
execution and a reporting
channel where its suppliers
can inform us if they identify
any such impact.
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187
Establishment
of controls to
ensure due
protection of
the health and
safety of all
supply chain
workers
Direct or
indirect
suppliers
P
Current S
The idea behind getting
suppliers to endorse the
Code of Conduct for
Suppliers at the start of the
supplier screening,
certification and scoring
process is to ensure the
selection of suppliers that
are suitable for forming part
of Redeia's database. This
code, which is part of the
contractual documentation
as per the general
contracting conditions and
hails from Redeia's Code of
Ethics and Conduct,
establishes minimum
requirements around
ethical, social and
environmental matters
which all suppliers must
accept and comply with in
order to work with Redeia
and which suppliers must
extend to their own supply
chains.
Impact on the
working
conditions of
value chain
workers
The Code of
Conduct for
Suppliers
(contractual and
binding
document)
The impact is
linked to the
operations of
Redeia's
suppliers
Redeia integrates
processes and procedures
into its business model that
are aligned with the
Company's governance
based on the Code of
Conduct for Suppliers,
which includes "To
guarantee the non-
existence of all forms of
child labour". Comply with
all laws, regulations and
international, national and
local declarations with
regard to the minimum age
for employment". As a
mitigation and control
measure, Redeia also
performs social audits of
suppliers to verify their
compliance with the Code
of Conduct for Suppliers
and other applicable
legislation. An action plan is
triggered where a risk is
identified.
Redeia also has a system
for tracking incidents
identified in contract/order
execution and a reporting
channel where its suppliers
can inform us if they identify
any such impact.
*Time horizon: S (Short term), M (Medium term), L (Long term).
The impacts identified are included in the sup-topics:
•
Working conditions, specifically the sub-sub-topics of Health and safety and Secure employment
•
Other work-related rights, specifically the sub-sub-topics of Forced labour and Child labour
Negative impacts are classified according to their type of effect:
•
Technical: impacts or accidents when performing work.
•
Economic: for irregularities, e.g., in third-party payments or failure of the supplier to provide certifications
of work on time and as due.
•
Legal: for, e.g., declaration of insolvency proceedings by the supplier or its parent, by administrative
decision or court ruling confirming or declaring insolvency.
•
Compliance/social audits: for, e.g., breach of the Code of Conduct for Suppliers due to lack of due
diligence, complaints by Redeia's Ethics Manager or from audits stemming from continuous monitoring,
when they lead to the identification of more significant non-compliances.
Moreover, Redeia ensures that any negative impacts are treated as isolated cases because of their low
occurrence and minimisation through the corrective action plans triggered when this type of risk is identified.
Working conditions
•
Health and safety: Negative impacts regarding working conditions such as injuries to employees of
Redeia's suppliers may arise due to the nature of Redeia's business model. For instance, its operations
often involve heavy machinery, high-voltage electrical work, and working at heights.
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Consolidated Management Report 2024
As for positive impacts, Redeia actively promotes health and safety across its value chain by implementing
controls to protect the health and safety of its suppliers' employees. The Code of Conduct for Suppliers
outlines the minimum ethical, social, and environmental requirements of suppliers.
When the Company deems that a supply should meet minimum requirements (e.g., certifications, track
record, resources), it defines minimum requirements that suppliers must meet to qualify. In addition,
generally:
– ISO 9001 certification of the supplier is mandatory for all supplies with defined minimum requirements.
– ISO 14001 or equivalent certification of the supplier is required for supplies with environmental impact.
– ISO 45001 or equivalent certification of the supplier is required for supplies with impact on health and
safety.
In addition, under the framework of the Supply chain security management system, suppliers most hold
security certifications: a valid certificate of the information security management system (ISO/IEC 27001) and
a valid certificate of the business continuity management system (ISO 22301).
Redeia also has a corporate safety management tool. It is a prevention management tool that provides
traceability and enables the collaborative management of all health and safety processes with internal and
external stakeholders, considering suppliers and their work for Redeia.
•
Secure employment: Redeia has a positive impact on its value chain by ensuring that supply chain
employee hires are fair and uphold labour standards through mandatory supplier acceptance of the Code
of Conduct for Suppliers. This code, which is part of the contractual documentation as per the general
contracting conditions, stipulates the ethics and conduct standards Redeia's suppliers must meet. By
establishing this requirement at the start of the supplier registration process, we foster a culture of
responsibility and ethics across Redeia's supply chain. This in turn helps build solid and trustworthy
business relationships underpinned by a commitment to comply with the standards set and conduct
themselves ethically in all of their operations. Compliance with the Code of Conduct for Suppliers is verified
through audits, whether included in the audit planning or following identification of a risk.
Other work-related rights
•
Forced labour and child labour: Redeia makes a positive impact on its value chain by upholding a strong
commitment to respect for human rights through compliance with the Code of Conduct for Suppliers and
initiatives such as training focused on human rights management in collaboration with the Spanish chapter
of the Global Compact. It has zero tolerance of forced labour and child labour. Through supplier audits,
Redeia verifies the non-existence of child and/or forced labour in its supply chain.
Given the nature of the Company's activity, the most significant risk is worker safety at Redeia's own
facilities. To address this, there are supplier qualification processes with mandatory requirements,
protocols, and required disclosures in tender documents. Beyond this, the technical area creates the
technical specification containing the technical requirements.
For every service or procurement of materials and equipment, the above-mentioned documents set out
the requirements that suppliers must meet before performing the service or supply, tailored to the type of
service or supply.
In its double materiality assessment, Redeia identified several types of value chain workers (customers' and
suppliers' workers) affected by Redeia's owns operations and value chain, through its products and services,
or through the business relationships with Redeia. However, none of these workers are particularly vulnerable
to occasional negative impacts.
Suppliers
Redeia divides procurement into two categories, service providers (including works) and equipment and
material suppliers.
•
Service providers.
Consolidated Management Report for 2024
189
– Workers performing work at Redeia's own facilities, whether in offices or other transmission grid sites.
– Workers performing work at the supplier's own facilities.
– The service providers category also includes subcontractors, whose relationship with the Company is
governed through a subcontracting management system subject to approval and oversight.
•
Equipment and materials suppliers. These suppliers operate primarily at their own facilities. However,
their activity may also include installation and technical assistance at Redeia's sites.
Employees in the equipment and materials value chain take part in producing goods and manufacturing
different parts. This requires the extraction and processing of raw materials, mostly metals.
Redeia extends the principles of its Code of Conduct for Suppliers to all value chain workers. The Company
guarantees that none of its suppliers engage in the trade of conflict minerals (tungsten, tantalum, tin, and gold)
and extends the principles of the Code of Conduct for Suppliers to the relationship with value chain workers.
Redeia also subcontracts logistics services to a qualified provider. The logistics operator oversees storage,
transport, and distribution of specific equipment and materials that are not delivered directly to the
transmission grid sites. This service is subject to the processes, procedures, and contractual documentation
described in previous sections.
Furthermore, Redeia has employees working in joint operations, e.g., Inelfe.
Regarding geographical location of these workers, no qualified suppliers or their manufacturing facilities are
located in conflict-affected countries. Regarding Redeia's supplies, none are linked to the arms trade or other
military-related activities, as the Company only does business with companies that have passed the
qualification process. Subcontracting is subject to an approval and monitoring process. Where risks related to
suppliers' workers are identified, Redeia may perform targeted social audits, in addition to the sample audits
conducted annually, as a risk mitigation mechanism.
11.3.2.2 Impact, risk and opportunity management
a. Policies related to value chain workers. S2-1, MDR-P
Redeia holds a key position as a global operator of essential infrastructures and, consequently, is a decisive
agent in the development of a sustainable energy future. The Group is fully committed to supporting the
achievement of the UN Sustainable Development Goals (SDGs) and has considered these goals into
designing its 2030 Sustainability Commitment, to ensure that the Company's priorities and actions contribute
significantly to the achievement of the SDGs.
The policies used to manage impacts, risks and opportunities (IROs) related to the value chain are explained
in the chapter on Code of Conduct and Ethics, which contains the ethical values and principles to uphold,
formulated through commitments and standards of conduct. The code constitutes a firm commitment by the
Company to ethical and transparent management as the engine to consolidate its image and enhance its
reputation. Further information can be found at the following section on the corporate website: Compliance
culture | Redeia.
Aware of the importance of the actions of its value chain, Redeia actively promotes the adoption of
sustainability criteria among its business partners and across its supply chain. These criteria are based on the
Ten principles of the Global Compact, which include the UN's guidelines on human rights, working conditions,
the environment and anti-corruption. These principles are adhered to from first contact with suppliers and
through the risk monitoring and management process.
Accordingly, Redeia has several codes and policies supporting its value chain management:
•
The Code of Conduct for Suppliers which, as outlined in the general contracting conditions, is included
in the contractual documentation. The objective of this code is to disseminate and promote values and
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Consolidated Management Report 2024
responsible behaviours in the work and professional activities of suppliers across their various areas of
operation. The Code of Conduct for Suppliers formalises minimum requirements around ethical, social
and environmental matters which all suppliers must accept and comply with in order to do business with
Redeia and which suppliers must extend to their own supply chains.
The code is aligned with the ethical values of respect, integrity and sustainability, as well as with the
principles contained in Redeia's Code of Conduct and Ethics and Compliance Policy. Accordingly, it should
be interpreted considering the content of those documents.
As part of its ongoing development, Redeia updates its Code of Conduct for Suppliers regularly, introducing
principles to existing requirements, e.g., to guarantee the non-existence of all forms of child labour, forced or
compulsory labour, as well as to respect maximum working hours and minimum wages, in alignment with
international labour standards.
•
The Compliance Policy, which sets out the principles governing Redeia's commitment to the prevention
and detection of, and response to, any unlawful conduct or any action in breach of the commitments it has
assumed voluntarily. Principles of this policy include establishing the due diligence measures in terms of
ethics and compliance required for an adequate selection and monitoring of compliance by third parties.
•
The Due Diligence in Integrity and Human Rights of Third Parties Guide, which serves as a tool for
managing relationships with stakeholders, including suppliers, and ensuring that they are governed by
integrity and transparency, two key elements in maintaining the trust and reputation of the Group. The
guide aims to mitigate the risk of associating Redeia with third parties who engage in conduct contrary to
our ethical values, especially illegal activities in the field of integrity (e.g., corruption, bribery, money
laundering, terrorist financing, and other similar activities) and human rights (e.g., forced labour, human
trafficking, child labour, restrictions on the right to freedom of association and collective bargaining, the
right to decent work, non-compliance with the principles of equality and non-discrimination).
•
The Sustainability Policy, which includes the principle of respect and promotion of internationally
recognised human rights, acting with due diligence.
•
Ten Principles for respect for human rights, articulated in the Commitment to the promotion and
respect for human rights. The Company has embraced an explicit and public commitment to respecting
human rights in every country in which it operates, focusing on the freedoms and rights of vulnerable
groups such as indigenous people, women, children, persons with disabilities, the LGBTI community and
migrant workers, and it extends this respect more broadly to its relationships with third parties. This
commitment is integrated into the human rights management model, approved by the Sustainability
Steering Committee, which structures and systematises the Company's actions to protect and respect
human rights and to address any risks we can cause in this area.
•
The contracting conditions. Any supplier wishing to join the Company's value chain must accept the
contracting conditions, which set out the requirements, service levels and responsibility governing the
relationship between Redeia and its suppliers. The contracting conditions are published on the corporate
website and updated appropriately: Our contracting conditions | Redeia.
•
The Internal Supply Chain Policy, which sets out the principles governing the supply chain in order to
ensure that the goods and services Redeia needs are provided efficiently and to the required quality
standards, and are aligned with its commitment to contribute to sustainable economic and social
development. Observance and compliance with these principles contained in this policy contributes to the
achievement of the organisation's purpose and strategic objectives, in keeping with the values, principles
and behaviour guidelines enshrined in Redeia's Code of Conduct and Ethics.
Through its codes, policies, systems and guidelines, the Company requires that its professionals, as well as
third parties acting on its behalf or with whom it has business relationships, uphold the highest standards of
integrity in the performing their businesses. These means not offering bribes, hospitality, illegal payments or
any gifts to any Company employee, not engaging in irregular business practices that go against free
competition, not disclosing or misusing confidential information for their own benefit, and promoting a
commitment to responsible procurement in their procurement processes. In addition, Redeia ensures
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enforcement of and compliance with its policies at the organisation's highest levels, as established in section
1.2.3 Policies in chapter 1.2 Materiality assessment.
Note the implementation of controls to mitigate potential risks arising from non-compliance by suppliers with
regulations, laws, or contractual documentation. These include social audits, segregation of duties within the
procurement process, and full execution of the process through systems ensuring traceability and regular
auditing.
Additionally, suppliers are required to promote anti-corruption within their sphere of activity.
b. Processes for engaging with value chain workers about impacts. S2-2
Redeia conducts a biennial supplier perception study to gain insights into suppliers' expectations and
perceptions regarding the Company's procurement process. In 2024, it carried out the study covering the 2022-
2024 period. A total of 350 suppliers took part, with an overall satisfaction score of 7.84 out of 10 (with 8
identified as a key strength). This was 5.5% higher than the previous study, with a 5.7 percentage point
increase in participation.
The findings of these studies are used to draw up action plans to address areas identified by suppliers as
having the greatest impact. The action plan from the previous study was fully executed.
Once the action plan is defined, it is shared with a sample group of participating suppliers to assess their level
of satisfaction with both the reported results and the proposed improvement plan. In 2024, 95% of this group
was very satisfied or satisfied with the study and 100% was very satisfied or satisfied with the proposed
improvement plan.
Redeia's Procurement Department establishes a communication plan to create dedicated spaces for meetings
and dialogue with suppliers to give mutual feedback. The aim is for both parties to improve by sharing a view
of both companies and future challenges.
Meanwhile, Redeia has open communication channels with value chain workers. The aim is to have meeting
points and maintain dialogue for obtaining mutual feedback, identifying opportunities of collaboration and
improvement, and sharing their vision of the future, while working to support the development of suppliers in
areas with impacts on the value chain.
While not disclosed, other communications take place across multiple levels at suppliers in the form of
personal conversations. Depending on the communication, these exchanges may take place at a technical
level, e.g., with the supplier's sales department, technical staff (engineers, manual workers, sustainability and
safety officers) or at executive levels of the supplier's organisation.
Supplier engagement takes place at different levels based on the matter to be addressed:
•
Institutional level (senior management) to align visions and monitor supplier-customer relationships and
opportunities for improvement. This is managed through an annual meeting plan with key business
suppliers.
•
Technical level to address a range of topics, covering not only monitor order/contract execution, but also
progress, opportunities for improvement or lessons learned (e.g., design, technical developments,
sustainability, safety, or sales).
•
Supplier monitoring level to have the best and latest information for appropriate risk monitoring, update
contractual documentation, supplier qualification requirements, etc. to developments, or track impacts that
could result in changes in status of certain suppliers.
In all cases, the Company reinforces the importance of the supplier cascading relevant information across its
value chain
Beyond this direct engagement, Redeia also makes formal communication channels available to suppliers
and their value chain, as discussed in the following section.
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c. Processes to remediate negative impacts and channels for value chain workers to raise
concerns. S2-3
Suppliers are subject to continuous monitoring through the term of their contractual arrangement. When an
incident occurs, the procedure in place is performed to remedy the situation. This involves carrying out the
relevant action plans or, where this is not possible, applying measures depending on severity. These could go
as far as changing the status of the supplier's qualification or even removing the supplier from Redeia's
classification and qualification system (see complementary information in the following section).
Directly communicating with its value chain is crucial for Redeia. We provide suppliers with several of our own
communication channels, where we rely on third parties to facilitate and improve their service and to address
any incidents that may arise. One channel is the Procurement Support and Helpdesk (ASA), which
manages supplier queries, doubts and claims associated with the procurement process, and provides
clarification regarding the content of the Code of Conduct for Suppliers. This channel is available on the
corporate website: Supplier helpdesk | Redeia.
In 2024, Redeia did not receive any claims relating to human rights through this channel and did not cancel
any contract or order for this reason.
In addition to this channel, there is the Ethics and Compliance Channel, a formal mechanism established
by Redeia for raising queries and reporting breaches with the objective of cultivating a culture of
communication as a core element of Redeia's integrity model. This channel guarantees the required
confidentiality, with processing through the Ethics Manager.
Redeia has the DÍGAME Attention Centre for sending messages to Redeia, while the corporate website has
a specific section for Suppliers. This section includes the applicable regulations and processes and
provides information of interest for the supply chain (e.g., training and partnership programmes, results of
perception studies) along with other relevant documents and information. It also provides step-by-step
instructions for a company to register as a supplier. In addition to these, the corporate website provides
information on Redeia's strategy and business model, and more.
As another action to enhance communication and engagement with suppliers, Redeia organises forums on
a range of topics and holds strategic meetings with critical suppliers to identify specific short- and medium-
term actions for joint improvement.
Through the procurement platform, Redeia facilitates traceable and secure touchpoints with suppliers,
including questionnaires, questions, polls, and surveys. This platform can be used to consult the supplier
portfolio and maintain conversations with suppliers to enhance our processes, gain insights in planning, and
obtain valuable feedback on the portfolio and other relevant information.
This feedback is integrated into the Strategic Plan in the form of milestones and commitments which, together
with the view of the supplier portfolio, help shape the Procurement Operational Plan. This plan specifies
concrete actions in this area.
In addition to these processes, Redeia may initiate a supplier audit if it identifies a risk (e.g. country risk, non-
compliance with Redeia's Code of Conduct for Suppliers) regardless of whether the auditor is in the pre-
qualification stage or already certified. Audits are conducted of existing or potential suppliers with the highest
risk to review compliance with the Code of Conduct for Suppliers, as well as with applicable regulations.
An audit plan is drawn up annually, specifying the suppliers to be audited and their associated risks. This
plan is dynamic, so suppliers can be included or excluded over the course of the year based after verifying
that the risk or risks identified no longer exist.
Where audit findings show non-conformities, Redeia and the supplier work together on a corrective action
plan that they both must validate. There is a period of dialogue for proposing the relevant actions, their
timeframes and the officer in charge of each.
Failure to implement corrective actions within the agreed timeframe may result in a change in the supplier's
qualification status. Similarly, refusal to participate in an audit can also result in a change of qualification status
until the supplier accepts.
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193
d. Taking action on material impacts on value chain workers, and approaches to managing
material risks and pursuing material opportunities related to value chain workers, and
effectiveness of those actions. S2-4, MDR-A
Redeia has a supplier impact management process for managing both actual and potential impacts in order
to ensure the effectiveness of these actions. The objective of this process is to restore any identified situation
to its original state. To do so, action plans are developed, outlining measures and timeframes, which are
monitored over a specific period. If the situation persists after that, depending on the severity, the procedure
specifies the situations in which a supplier qualification status can change, or a supplier can even be removed
from the classification system (disqualification).
All impacts associated with supplier activity and contracts include sustainability-related impacts and effects
(e.g., ethics, occupational health and safety, and environmental).
In cases of an actual or potential risk, there is ongoing and direct communication with the supplier, which
entails:
•
Notifying that an incident has been opened.
•
Holding meetings between Redeia and its workers and workers' representatives to restore the situation.
•
Jointly developing an action plan, where appropriate, outlining the corrective measures to be implemented
by both the supplier and Redeia, as appropriate.
•
Formally communicating changes in qualification status.
•
Modifying supporting documentation if during the process improvement actions to be considered in the
future are identified that are applicable in general to all suppliers.
This entire process is tracked and documented in the supplier qualification and monitoring tool. The
designated impact management team facilitates communication with suppliers and the relevant Redeia
departments that may be affected or are involved. This provides a holistic view of the situation, allowing for
an effective action plan to be drawn up, along with its monitoring and the decisions to be made to remedy the
incident. These communications also enable both Redeia's areas and suppliers to be aware of and understand
the internal procedure, facilitating orderly communication.
Redeia also has a variety of measures designed to enhance the relationships with its suppliers, including
regular supplier perception studies. These resulted in the definition of three key actions from the ESG action
plan for suppliers:
•
Enhance long-term planning visibility and work scheduling.
•
Improve information transparency throughout the tendering process.
•
Increase usability of platforms.
Once the action plan is defined, it is shared with a sample group of participating suppliers to assess their level
of satisfaction with both the reported results and the proposed improvement plan. In 2024, 95% of this group
was very satisfied or satisfied with the study and 100% was very satisfied or satisfied with the proposed
improvement plan.
To manage, and potentially remediate damage caused by the negative impacts, Redeia provides access to
training and capacity-building programmes, fostering sustainable development across its supply chain.
Training is free and covers a range of subject, e.g., ethics, risk management, human rights, and supply chain
security.
11.3.2.3 Metrics and targets
a. Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities. S2-5, MDR-T
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Targets designed to mitigate negative impacts and advance positive impacts on the supply chain:
•
Negative impact associated with injuries or unhealthy working conditions: Provide further training on areas
of health and safety with our supplier portfolio. Continue with reviews of contracting conditions, adapting
material aspects to working conditions. Enhance risk monitoring.
•
Positive impact associated with forced labour and child labour: Reinforce adherence to the UN Global
Compact or similar in the supplier portfolio. Continue performing audits to halt non-compliances and
implement corrective action plans where appropriate. Enhance risk monitoring.
•
Positive impact associated with secure employment: Continue with reviews of terms of employment,
ensuring appropriate compliance with labour standards. Maintain active and operational communication
and whistleblowing channels with the supplier portfolio. Enhance risk monitoring.
As noted in section 1.1.4 Strategy and business model, Redeia's Board of Directors approved 11 sustainability
goals in 2019 aligned with the strategic plan and the UN Sustainable Development Goals. In 2022, by drafting
the 2023-2025 Sustainability Plan, we were able to set interim targets as milestones for delivering our
sustainability ambitions by 2030.
These targets were evaluated by the Sustainability Steering Committee, the Executive Committee and the
Board Sustainability Committee. The objectives then received final approved by the Board of Directors,
reinforcing their legitimacy and ensuring that they are embedded in Redeia's corporate strategy.
Redeia did not, however, directly involve value chain workers or their representatives or spokespersons in the
process of defining the objectives. As Redeia moves towards delivering its sustainability goals, it could
consider including these stakeholders, which could contribute significant added value by encouraging closer
cooperation and aligning with those who are crucial to the success of the sustainability initiatives.
The Company's targets are supported by the following objectives:
Objective for 2030
Objective for 2025
Progress in 2024
Drive change among our suppliers: at least 25
supplies with the greatest impact in the
transmission network, based on circularity (life
cycle analysis), climate change, security,
diversity and biodiversity criteria.
At least 10 supplies with the greatest
impact in the transmission network,
based on circularity (life cycle
analysis), climate change, security,
diversity and biodiversity criteria.
11 supplies with the greatest impact in the
transmission network, based on circularity
(life cycle analysis), climate change,
security, diversity and biodiversity criteria.
The Board Sustainability Committee oversees the level of achievement of the sustainability objectives on a
half-yearly basis.
The outcomes and targets resulting from actions implemented are not only communicated internally but are
also shared transparently in specific meetings with suppliers. The information is also included in detail in the
ESG Report, which is publicly available on the Redeia website, in the drive to promote transparency and
accountability. This process includes an internal assessment, as well as external feedback from suppliers
through continuous monitoring. Suppliers are again asked for their assessment of the proposed targets to
measure their effectiveness and acceptance. Additional feedback is gathered from regular meetings held with
suppliers to discuss all the targets and explore opportunities for improvement.
Lessons learned from this process are crucial for the Company's future development. They are integrated into
the development of new targets and action plans, ensuring that they lead to meaningful adjustments to internal
processes and contractual documents and align the Company's operations with the expectations of suppliers
and other stakeholders.
11.3.3 ESRS S3 – AFFECTED COMMUNITIES
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195
11.3.3.1 Strategy
a. Interests and views of stakeholders. SBM-2
Redeia works continually to develop public engagement processes and strengthen its relations with
stakeholders, specifically its affected communities, as described in section 1.1.4 Strategy and business model;
b) Interests and views of stakeholders SBM-2 of this report. The aim is for the interests and views of affected
communities to serve as the basis for Redeia's strategy and business model.
Redeia also conducts perception studies of land and property owners, analysing the results to support
executive decision-making based on: current level of perception regarding the various attributes that impact
relationships with these stakeholders; comparative trends in levels of perception relative to previous surveys;
and the requirements, expectations and opportunities for improvement expressed by those surveyed during
the interviews.
b. Material impacts, risks and opportunities and their interaction with strategy and business
model. SBM-3
The outcome of the process to identify impacts, risks and opportunities in the double materiality assessment
performed in 2024 led to the identification of one negative impact and no positive impacts, risks or
opportunities, as defined in chapter 1.2 Materiality assessment, section 1.2.4 Material impacts, risks and
opportunities. SBM-3.
Impacts
Impact
Positive /
Negative
Current /
Potential
Time
horizon (*)
Current/anticipate
d effects on the
business model,
value chain,
strategy and
decision-making
How the impacts
affect people
and the
environment
Interaction of the
impact with
strategy and
business model
Link between
impacts and
business activities
and relationships
Assessment of the
resilience of the
strategy and business
model regarding its
capacity to address
material impacts
Easement or
expropriation of
land for the
location of sites
N
Current
S
Direct and
continuous
relationship with
landowners and,
where technically
feasible and without
increasing impacts
on other plots, a
change of route or
location of the
supports within the
property to
minimise impacts
Use or
expropriation of
land for
construction or
maintenance of
sites
Requests for
change of route or
location of the
supports within the
property, where
they are technically
feasible and do not
exacerbate impacts
on other plots, are
accepted.
Use or expropriation
of land during the
construction phase
or maintenance of
sites
Redeia encourages a
direct and continuous
relationship with
landowners to minimise
this impact.
*Time horizon: S (Short term), M (Medium term), L (Long term).
The identified impact, "easement or expropriation of land for the installation of electricity
infrastructure", which falls under the sub-topic "Land-related impacts", arose during the performance by the
Company's main electricity transmission subsidiaries (Red Eléctrica and Redinter) of their core businesses.
Specifically, it resulted from the construction and maintenance of the transmission grid. Accordingly, this
activity generates an impact on land and property owners; i.e., it is a general impact. However, other groups
in the value chain are not affected. Indigenous settlements are also unaffected, since there are no populations
in the direct area of influence of Redinter's activities (in Peru, Chile or Brazil).
The affected group, land and property owners, are private individuals or companies that own the land or
properties affected by Red Eléctrica's operations and transmission network development plans with which the
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Company must engage and negotiate to deliver its objectives with minimal impact on its reputation, and its
financial and strategic performance.
Land and property owners can be classified as follows:
•
Owners of heritage assets: public asset owners with whom Redeia follows regulated procedures for
expropriating land for public interest. The relationship with these owners is governed by procedures and
channels that are regulated completely by the related public body. In any event, given the nature of the
installation as a public asset, applications for authorisation by the Company from Redeia are legally
mandated to receive approval.
•
Landowners: owners of assets and rights to land (private individuals or companies) that may be affected
during facility planning, construction or maintenance phases. The Company must negotiate with these
owners at the planning stage to minimise expropriations or compulsory acquisitions and maximise
amicable agreements, as well as apply for permits and come up with solutions to reduce the negative
impacts during the construction and maintenance phases. The relationship with these owners, from the
outset, entails personally negotiating, either directly or via brokers, the purchase of the land based on
previously appraised prices. The aim is to maximum agreements and minimise expropriations.
Communication is also required for maintenance activities, once the facilities come on stream, requesting
permits and operating with processes that minimise impacts.
•
Property owners: private individuals or companies with which there is a contractual purchase/lease
relationship to acquire all the necessary sites to cover the organisation needs of the Group's various
companies. Relationships with these owners are contract-based. Direct relationship with these owners is
sporadic, to remedy impacts or address problems with the property, and annually, to manage tax
withholdings.
With all three owner types, the units involved in the relationship are Real Estate Management, Permits, Project
Management, Construction and Demarcations. The engagement channels are direct personal contact, the
DIGAME Channel, meetings via associations or local government, channels set up by the owners of heritage
assets, emails and telephone.
11.3.3.2 Impact, risk and opportunity management
a. Policies related to affected communities. S3-1, MDR-P
Redeia has a stakeholder management model that considers the provisions of the main stakeholder
management regulations and benchmarks, notably AA1000, ISO 26000, IQNet SR10 and the Global
Reporting Initiative (GRI), in order to ensure that the Company analyses the main impacts of its activities on
its stakeholders, as well as the influence that these stakeholders exert, or could exert, on the Company.
The following specified commitments are defined for land and property owners included in the social
ecosystem stakeholder inventory:
•
Lawfulness and compliance.
•
Generation of social, environmental and economic value in the vicinity of Redeia facilities and
developments.
•
Transparent, clear, opportune, complete, relevant, orderly and simple company information.
•
Creation of spaces and channels for open dialogue and prior consultation to foster engagement and deliver
immediacy, closeness, active listening and identification and analysis of needs.
•
Prevention and mitigation around impacts on works and facilities.
•
Rapid response in the event of incidents and emergencies.
•
Assignation of the resources needed to honour the commitments assumed.
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197
•
Redeia also has the Sustainability Policy approved by the Board of Directors in 2022. This policy sets out
sustainability-related principles, guiding all activities towards a responsible management model, focused
on excellence and value creation for stakeholders and honouring the commitments assumed with them.
The Company's authorisations, expropriations and easements, as well as transmission facility installation
authorisation procedures, are governed by the Spanish Electricity Sector Act (Law 24/2013, of 26 December
2013) and Royal Decree 1955/2000, of 1 December 2022, which regulate electricity transmission, distribution,
marketing and supply, and authorisation of electricity facilities.
Lastly, as part of its internal rules and regulations, the Company has developed a technical instruction
governing the management of payments related to land use permits and compensation for damages.
Human rights
Redeia has embraced an explicit and public commitment to respecting human rights in every country in which
it operates, focusing on the freedoms and rights of vulnerable groups such as indigenous peoples, women,
children, persons with disabilities, the LGBTI community and migrant workers, and it extends this respect
more broadly to its relationships with third parties.
This commitment was reinforced in 2022 with the formalisation of the Ten Principles for respect for human
rights, which was made public through the Commitment to the promotion and respect for human rights
in order to strengthen the corporate values, principles and rules of conduct set out in Redeia's Code of Conduct
and Ethics and in its Sustainability Policy. This commitment takes account of internationally recognised
principles in the Universal Declaration of Human Rights and its implementing conventions, the International
Covenant on Economic, Social and Cultural Rights and the various conventions and protocols of the
International Labour Organization (Convention 29 on forced labour, 138 on minimum age, 87 on freedom of
association protection of rights to organise, 98 on right to organise and collective bargaining, 100 on equal
remuneration, an 169 on indigenous and tribal peoples). It was also deemed appropriate to incorporate new
rights into the commitment. These respond to new human needs that have materialised through so-called
emerging human rights (e.g., the right to a healthy environment or the right to decent work).
These Ten Principles of the commitment are reviewed on an annual basis, as new rules or standards may
have emerged, the Company may have expanded to other sectors or geographies, and disclosures may have
been received through the various speak-up mechanisms that Redeia makes available to its stakeholders.
Redeia promotes and maintains ongoing relationships with local communities where it has operations,
carrying out annual due diligence assessments at all Group companies (including investees) since 2013 in
order to identify possible risks or human rights violations derived directly or indirectly from its activities. Note
that currently there no indigenous settlements or communities lying within the sphere of influence of Redinter's
activities. Therefore, there is no risk of such communities being affected.
In addition, Redeia has an Ethics and Compliance Channel accessible to all stakeholders, as a formal
mechanism to respond to enquiries or reports of breaches related to human rights. The Company has other
communication channels for raising concerns regarding any issues, including the DÍGAME service, which
handles complaints and enquiries from external stakeholders regarding system transmission and operation;
the ASA channel, for specific service to suppliers, the DÍGAME Internacional service, focused on the business
in Latin America; and the Hispasat and Reintel speak-up service.
Any request received via these channels also serves as input for the Company's human rights risk map.
b. Processes for engaging with affected communities about impacts. S3-2
Redeia has an organisational structure distributed across the entire country, facilitating communication
and institutional collaboration with public and private institutions. This work is carried out by regional branches,
alongside the Installation Development Support Department and Project Department. These two departments
fall under the General Transmission Department.
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Redeia engages with affected communities at various phases of its projects, especially start-up. Projects must
be presented to town councils and affected stakeholders before any formal processing or processing by the
Company's representatives begins. This enables stakeholders to voice doubts or raise concerns, fostering a
relationship of trust with Redeia and identifying its representatives. At this stage, collaboration agreements
with the town councils are encouraged to strengthen these relationships. After this initial contact, the frequency
of further interactions with local communities is dictated by the identified needs in each case. Actions may be
designed to remediate any potential impacts on the communities. During negotiations with owners, requests
for change of route or location of the supports within the property, where they are technically feasible and do
not exacerbate impacts on other plots, are accepted.
Redeia promotes direct and ongoing communication with landowners. It keeps contact details up to date to
ensure that communication with them is as flexible and effective as possible. It also has the Ethics and
Compliance Channel, which is publicly accessible via Redeia's website.
Redeia also conducts opinion surveys of its groups. The latest, carried out in 2023, was for the entire
corporation. All categories of questions surveyed showed a "strong performance" level (8 points out of 10).
c. Processes to remediate negative impacts and channels for affected communities to raise
concerns. S3-3
The Company's approach entails negotiation with owners of assets and rights to land, seek to reach
amicable agreements in all cases and avoid expropriations of land on or around where its facilities are located.
Redeia goes house-to-house, negotiating with the affected parties. Some landowners interact with Red
Eléctrica through business associations or representatives. Red Eléctrica engages companies to do the
negotiations, while internally, the Permits Department manages the negotiations to establish easements for
electricity infrastructure amicably. The goal is to avoid, as far as possible, the need for easements via
expropriation. If no agreement is possible, the expropriation process is managed until completion of the
administrative procedure with the official record of payment of 'just compensation'.
In this case, as it has been doing systematically, Redeia sets compensation thresholds for each specific
installation based on a detailed assessment of the type of land affected by the facility, an analysis of crop
prices, and an evaluation of recent rulings from expropriation or compulsory acquisition authorities.
The Ethics and Compliance Channel is run by the Ethics Manager with support from Compliance. The
channel is regularly audited and provides user maximum confidentiality and anonymity of the information
reported and actions taken through a secure software application that ensures close monitoring of all enquiries
and complaints received.
In 2024, Redeia's Ethics and Compliance Channel was awarded UNE-ISO 37002 certification, representing a
key milestone in the Company's commitment to strengthening the protection of its employees and other
stakeholders. It also reinforces Redeia's management of reports received through the Ethics and Compliance
Channel. This certification accredits the protection of users of this channel and the confidentiality of
information.
Redeia also has an Ethics and Compliance Channel Management System and Whistleblower Protection
Policy, designed to establish the principles and guarantees governing the Ethics and Compliance Channel
management system as a formal means for raising queries and reporting breaches.
The year featured the update of the Ethics and Compliance Channel Management System Handbook and
formal appointment of the person in charge of Redeia's Ethical and Compliance Channel management
system; i.e., the Ethics Manager and Stakeholder Ombudsman).
The Company has in place a Retaliation Protection Protocol, the main objective of which is to protect
whistleblowers who submit a report through Redeia's Ethics and Compliance Channel management system
from potential retaliation, including threats of retaliation and attempted retaliation. The protocol establishes a
framework of protection that can effectively address situations of risk and protect persons who use the system
in good faith from such retaliation. It is included in the Ethics and Compliance Channel Management System
Handbook, which is available for the Company's internal and external stakeholders through its intranet and
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199
website. The Company regularly carries out surveys among Redeia staff to assess perception, knowledge
and use of the Ethics and Compliance Channel.
d. Taking action on material impacts on affected communities, and approaches to managing
material risks and pursuing material opportunities related to affected communities, and
effectiveness of those actions. S3-4, MDR-A
Aware that there is a possibility that impacts on affected communities could arise, Redeia works to foster
relationships of trust and/or smooth relationships with its priority stakeholders.
Redeia engages with affected communities at various phases of its projects, especially start-up. Projects must
be presented to town councils and affected stakeholders before any formal processing or processing by the
Company's representatives begins. This enables stakeholders to voice doubts or raise concerns, fostering a
relationship of trust with Redeia and identifying its representatives. At this stage, collaboration agreements
with the town councils are encouraged to strengthen these relationships. After this initial contact, the frequency
of further interactions with local communities is dictated by the identified needs in each case. Actions may be
designed to remediate any potential impacts on the communities.
Note that during negotiations with owners, requests for change of route or location of the supports within the
property, where they are technically feasible and do not exacerbate impacts on other plots, are accepted. As
an illustration of these actions, in 2024 Red Eléctrica discussed, with the owner of several plots of crop land
affected by the Coscurita-Magaña line, the possibility of situating the supports on mounds inside the plots
where no crops are grown, thereby minimising the impact on crops. In cases where trees used for timber were
impacted, Redeia negotiated agreements with landowners to sell the timber directly, while helping secure the
necessary felling permits from the relevant authorities. This approach is common in Galicia, where the
Lousame-Tibo line was recently commissioned and the lines for the interconnection with Portugal are under
construction, and was used especially with communal landowners affected by the facility.
Measures adopted in 2024 featured:
•
In Spain, the launch by Red Eléctrica of an active cross-sector listening programme, bringing together
representatives from regional governments, parliaments, local councils, town councils, agricultural and
industrial associations, NGOs, citizen platforms, and universities at events held in Seville and Santiago de
Compostela. The aim was to find joint solutions to accelerate investments in the transmission grid which
are crucial for the energy transition.
•
In Peru, the Company successfully implemented community relations plans across its concession areas
and held monitoring and oversight committee meetings for the TESUR, TESUR 2, TESUR 3, and TESUR
4 projects.
•
In Chile, although the projects do not directly or indirectly impact local communities, in 2024 an internal
diagnosis of REDENOR and REDENOR 2 assets was performed to identify stakeholders so that a
community engagement plan could be rolled out in 2025.
Additionally, 2024 was a year of advances in human rights, with the due diligence process showing once again
that the Company carries a low level of risk and runs suitable controls. As a result, there were no human rights
abuses related with affected communities, so no remedial action was necessary.
11.3.3.3 Metrics and targets
a. Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities. S3-5, MDR-T
Redeia aims to streamline permit management process to enable and facilitate the implementation and
commissioning of transmission network infrastructure within the timeframes specified in the Company's
investment plan. It wants to maintain the high percentage of amicable agreements reached with landowners
over the establishment of transmission line easements.
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Annually, the Permits Department sets targets for securing amicable agreements to establish transmission
easements for certain installations to facilitate construction and commissioning within the established
timeframes in accordance with the Company's objectives and investment plan.
It also sets targets regarding expropriations or compulsory acquisitions in terms of completing the preliminary
and, as appropriate, occupation deeds required for project construction and commissioning within the
established timeframes in accordance with the Company's objectives and investment plan. The Company
monitors these targets on a quarterly basis.
In departmental meetings, cases posing difficulties in managing the permits are presented and the proposed
solutions reviewed for potential application to similar cases involving other installations. A facilitator within the
Permits Department promotes the lessons learned model, escalating the biggest cases through the Ágora
platform for further evaluation and possible application in other projects.
In 2024, amicable agreements were successfully reached with landowners affected by new investment
projects completed in 75% of the cases.
11.4 INFORMATION ON GOVERNANCE
11.4.1 ESRS G1 – CLIMATE CHANGE
11.4.1.1 Governance
a. The role of the administrative, management and supervisory bodies GOV-1
The criterion that must govern the actions of the Company's Board of Directors, as stipulated in article 6
(Operational principles) of the Regulations of the Board of Directors of Redeia Corporación, is the Company's
interests, understood as the long-term profitability and sustainability of the Company and the Group. For this,
it must promote the continuity and maximisation of the value of the Company in the interest of the
shareholders, employees, suppliers, customers and other stakeholders, and, in general, society as a whole,
considering, among other factors, the foreseeable consequences of any decision in the long term, the impact
of the Company and its Group on the community as a whole and the environment, as well as the maintenance
of the highest reputation for business conduct.
In addition, the function of the Board of Directors is to supervise and regularly evaluate the effectiveness of
the internal control systems and the management of financial and non-financial risks, so that the various types
of risk are identified, managed and disclosed appropriately, and especially internal control over financial
reporting systems. It oversees that the internal control policies and systems are effectively implemented in
practice, as stated in article 16. In particular, it assesses and supervises both the Company's and Group's
financial and non-financial risks, including, operational, technological, legal, social, environmental, political,
and reputational, as well as corruption-related risks and, where appropriate, in joint meetings with the
Sustainability Committee, risks related to sustainability, ethics and business conduct.
Meanwhile, in accordance with article 18 TER (Sustainability committee functions), the Board of Directors'
duties include that of assessing, supervising and controlling financial and non-financial risks related with
sustainability, ethics and business conduct and, specifically, climate change, in collaboration with the Audit
Committee, organising joint meetings as necessary.
Regarding management and supervisory bodies, according to Redeia's Functions Handbook the
Chairperson's Advisory Committee is tasked with monitoring Redeia's compliance system, overseeing that it
functions correctly.
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Meanwhile, the Crime Prevention and Anti-bribery Committee, governed by Redeia's Criminal and Anti-Bribery
Compliance System Handbook, has the mission of overseeing and monitoring the crime prevention and anti-
bribery system and works to ensure that the main criminal risks are suitably identified, managed and
disseminated internally.
Expertise of the administrative, management and supervisory bodies on business conduct
matters
The Company has a skills matrix for members of the Board of Directors of Redeia Corporación, the Redeia
parent, comprising three blocks. The first block is knowledge and experience in relation to Redeia's strategic
priorities. The second is cross-cutting knowledge and experience. Lastly, the third focuses on diversity. In turn,
these blocks comprise 27 categories reflecting director knowledge and experience in areas such as the
energy, telecommunications, and infrastructure management sectors, as well as accounting, auditing, and
finance, top-level corporate management, boards of directors of listed and non-listed companies, sustainability
and climate change, risk control and compliance, information and digital technologies, and comprehensive
security (both physical and cybersecurity), along with gender, age and tenure as director.
As reflected in Redeia's Annual Corporate Governance Report, the professional profiles of Board members
as at 31 December 2024 confirm that each is a highly regarded professional with a strong professional
background. This enables them to contribute the knowledge and experience to the supervision of corporate
management required to ensure the sustainable and strategic development of Redeia's activities.
11.4.1.2 Impact, risk and opportunity management
a. Description of the processes to identify and assess material impacts, risks and
opportunities. IRO-1
Redeia takes a systematic approach to identifying and assessing risks and opportunities related to
governance, suppliers and ethics, enabling it to continuously improve its processes, and enhance efficiency
in controls and response times. This results in a positive contribution to the business and shores up
compliance with the Strategic Plan. In this regard, one negative impact, two risks and one opportunity were
identified in the double materiality assessment, described in chapter 1.2 Materiality assessment, section 1.2.4
Material impacts, risks and opportunities. SBM-3.
Redeia also has its Code of Conduct and Ethics and Compliance Policy to ensure that it upholds high
standards, drawing up action plans with suppliers to strengthen partnerships and ensuring that these
processes are monitored on a continuous basis and adjusted in response to regulatory and market changes.
Impacts
Impact
Position in
the value
chain
Positive /
Negative
Current /
Potential
Time
horizon (*)
Current/anticipa
ted effects on
the business
model, value
chain, strategy
and decision-
making
How the
impacts affect
people and the
environment
Interaction of
the impact with
strategy and
business
model
Link between
impacts and
business
activities and
relationships
Assessment of
the resilience of
the strategy and
business model
regarding its
capacity to
address material
impacts
Breach of the
Code of
Conduct and
Ethics due to its
weak
embedment in
Redeia's own
operations
Own
operations
N
Current
S
Code of conduct
breaches by
Redeia
employees as a
result of its weak
embedment
Negative impact
for breach of the
Code of Conduct
and Ethics
Redeia relies on
its Code of
Conduct and
Ethics and
Compliance
Policy to uphold
high standards
in this field.
The impact is
linked to Redeia's
operations
Redeia embeds
these aspects in
its business model
based on
monitoring of the
Code of Conduct
and Ethics
*Time horizon: S (Short term), M (Medium term), L (Long term).
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Risks
Description of the
cause of the risk
Position in the
value chain
Time horizon (*)
Current/anticipated effects on
the business model, value
chain, strategy and decision-
making
Current financial effects
arising from risks.
Assessment of the
resilience of the strategy
and business model
regarding its capacity to
address material impacts
Imposition of fines or
lawsuits caused by the
leakage of personal
information of
whistleblowers
Cross-cutting
S
Increase in costs due the
payment of fines and penalties,
as well as loss of contracts and
reputational damage
Negative impact on the
Company's cash flows,
development and positioning,
cost of capital or access to
finance
Redeia embeds these
aspects in its business model
based on monitoring of the
Ethics and Compliance
Channel management
system
Leakage of
whistleblowers'
personal information
Cross-cutting
S
Increase in costs due the
payment of fines and penalties,
as well as loss of contracts and
reputational damage
Negative impact on the
Company's cash flows,
development and positioning,
cost of capital or access to
finance
Redeia embeds these
aspects in its business model
based on monitoring of the
Ethics and Compliance
Channel management
system
*Time horizon: S (Short term), M (Medium term), L (Long term).
Opportunities
Description of the
cause of the
opportunity
Position in the
value chain
Time horizon (*)
Current/anticipated effects
on the business model, value
chain, strategy and decision-
making
Current financial effects that arise from
opportunities
Assessment of the
resilience of the
strategy and business
model regarding its
capacity to address
material impacts
Improved reputational
positioning thanks to
the development of
action plans together
with suppliers for the
implementation of
best practices at
Redeia
Direct and indirect
suppliers and own
operations
S
Improvement in positioning due
to increase in trust and
partnerships with suppliers
Positive impact on cash flows
Redeia embeds these
aspects in its business
model based on progress
in the Procurement Plant
implemented under
Redeia's Strategic Plan
*Time horizon: S (Short term), M (Medium term), L (Long term).
Material impacts, risks and opportunities (IROs)
•
Improved reputational positioning thanks to the development of action plans together with
suppliers for the implementation of best practices at Redeia. Management of relationships with
suppliers and payment practices provide Redeia a significant opportunity. By jointly drawing up action
plans with its suppliers, Redeia can implement improvements to internal processes, making a positive
impact on its reputation. This partnership not only strengthens trust and partnerships with suppliers, but it
also improves the Company's positioning in the market. This is an actual positive impact with a short-term
time horizon that affects both direct and indirect suppliers and the Company's own operations.
•
Leakage of whistleblowers' personal information. Leakage of whistleblowers' personal information is
a risk that could potentially have severe consequences for Redeia. It can result in regulatory fines and
penalties, or the loss of contracts and reputational damage. This is a cross-cutting negative impact that
affects different areas within the organisation. Lastly, it can lead to an increase in costs related to the
payment of fines and penalties and a loss of trust of employees and other stakeholders. It is a current risk
with a short-term time horizon.
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Redeia has a risk map and specific controls through the Ethics and Compliance Channel management
system. Risks include the loss of privacy, confidentiality and anonymity in processing reports submitted
through that channel.
Redeia's Ethics and Compliance Channel management system is developed through the Ethics and
Compliance Channel Management System and Whistleblower Protection Policy designed to establish the
principles and guarantees governing that system as a formal means of raising queries and reporting
breaches.
As principles and guarantees of its Ethics and Compliance Channel management system, the Company
includes the commitment to guaranteeing anonymity and in all cases maximum confidentiality of the
whistleblower's identity, of the information reported and of the actions taken in managing and processing
the information. The system allows reports to be submitted anonymously.
Redeia also has an Ethics and Compliance Channel Management System Guide, which governs the
management and processing of reports received through the Ethics and Compliance, including the
mechanisms for whistleblowing and/or reporting breaches. This guide sets out the Ethics and Compliance
Channel Management System and Whistleblower Protection Policy regarding the application of principles
and guarantees in managing information. Redeia has formally appointed an officer for its Ethics and
Compliance Channel management system, i.e., the Ethics Manager and Stakeholder Ombudsman.
•
Imposition of fines or lawsuits caused by the leakage of personal information of whistleblowers.
The protection of whistleblowers acting in good faith is essential for maintaining integrity and trust within
the organisation. Therefore, the leakage of whistleblowers' personal information can pose a material risk
for Redeia in the short term. This risk can result in administrative sanctions, litigation and the loss of trust
of employees, as well as negative impacts on the Company's reputation. This is a cross-cutting negative
impact that may affect different areas within the organisation. Financially, it can lead to an increase in
costs related to the payment of fines and penalties, as well as lost business opportunities and reputational
damage. It is a current risk with a short-term time horizon.
•
Breach of the Code of Conduct and Ethics due to its weak embedment in own operations. Breach
of the Code of Conduct and Ethics by Redeia's employees can occur due to its weak embedment in the
Company's own operations. This negative impact arises when employees do not uphold the stated ethical
standards, potentially affecting the organisation's reputation and integrity. To mitigate this risk, Redeia has
developed an annual ethics and compliance training and communication plan, which includes specific
actions to disseminate the Company's Code of Conduct and Ethics and ensure enterprise-wide integration
in all the organisation's processes. This impact is actual and negative, with a short-term time horizon
affecting primarily the Company's own operations. Effectively implementing the measures helps to foster
a sound corporate culture aligned with Redeia's ethical values, making a positive impact on the business
and social ecosystem.
b. Corporate ethics and compliance culture. G1-1, G1-3
Breaking the laws or committing bribery or other criminal corruption offences is one of the risks with the
greatest impact for the Company. To address this risk, the Company has a set of policies and mechanisms
designed to foster a corporate culture grounded in ethics, transparency and regulatory compliance.
Redeia's crime prevention and anti-bribery system aims to identify the rules, procedures and tools in place
within the Company to prevent non-compliances with the criminal legislation applicable to the organisation
and its personnel. In this way, the management and prevention of any criminal risks that could affect the
Company, based on its activities and business sectors, are embedded into its control processes. The crime
prevention and anti-bribery compliance system is based on an assessment of the criminal and bribery risks
that theoretically could materialise within the organisation. It outlines the existing controls and procedures for
effective prevention and mitigation of these risks, taking account of location, activity, sector and the structure
of the transaction.
Mechanisms to prevent illicit activity, money laundering and concealment of assets in place at the Company
include:
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•
Code of Conduct and Ethics
•
Compliance Policy
•
Ethics and Compliance Channel Management System and Whistleblower Protection Policy
•
Criminal and Anti-Bribery Compliance System Handbook
•
Code of Conduct for Suppliers
•
Guide for the Prevention of Corruption: Zero Tolerance
The Code of Conduct and Ethics formalises the Company's commitment to ethics, consolidating a
responsible business model that ensures the creation of shared value and aligning the interests of the
organisation with those of its stakeholders. Redeia continuously fosters an ethics and compliance culture as
a core part of due diligence in managing compliance risks. Combined with its Ethics and Compliance Channel
management system, this constitutes effect mechanisms for detecting and addressing potential cases of
corruption, fraud and conflicts of interest. To help enforce the Code of Conduct and Ethics, the Ethics and
Compliance Channel, available on the corporate website, can be used to submit queries, report breaches or
make suggestions to the Ethics Manager, who performs their duties with the support of Redeia's Compliance
area. The Company regularly carries out surveys among Redeia staff to assess perception, knowledge and
use of the channel.
Redeia's Ethics and Compliance Channel management system is aligned with prevailing law and best
practices, including Spanish Law 2/2023, of 20 February 2023, and Directive (EU) 2019/1937 of 23 October
2019 on the protection of whistleblowers. This system establishes the principles and guarantees governing
the Ethics and Compliance Channel as a formal means for raising queries and reporting breaches. The
Company has formally appointed the Ethics Manager and Stakeholder Ombudsman as the officer in charge
of the Ethics and Compliance Channel management system, performing duties with the support of the
Compliance area. This role is equipped with the necessary resources and tools to detect and investigate
reported impacts.
Regarding the detection and management of potential breaches, reports, queries, and suggestions, a total of
11 queries were raised in 2024. All of these were resolved within the 10-day time limit, in line with the Ethics
and Compliance Channel Management System's rules, except for one, which required an exceptional
extension because of the volume of information involved. The queries received related to the following ethical
principles:
•
Continuous improvement of the customer experience
•
Responsible relationship with our suppliers
•
Disclosure of financial and non-financial information
•
Managing conflicts of interest
For the year, 14 reports regarding compliance with the Code of Conduct and Ethics were received. None were
over breaches linked to the organisation's criminal risks. More precise information on these reports is available
in the 2024 Annual Report on the Ethics and Compliance Channel Management System, published on
Redeia's corporate website.
Redeia actively promotes awareness and dissemination across the entire organisation of the importance and
strategic nature of Redeia's compliance systema, as part of the organisation's culture of integrity.
In 2024, the Annual Compliance Culture Awareness and Training Plan was implemented through both
internal and external communication initiatives, including the design and dissemination of training modules
covering essential aspects of Redeia's Compliance System. This included microlearning modules covering
key aspects of Redeia's compliance system; e.g., the Ethics and Compliance Channel management system,
the anti-corruption and fraud model, and the anti-sexual and gender-based harassment model. The trainings
supplemented the microlearning module developed by the Company in 2023 covering the conflicts of interest
management model. Through this training, designed for all employees, including all those with duties exposed
to the risk of corruption, Redeia provides the Company's professionals with the tools to resolve potential risks
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205
in performing their duties and responsibilities, as well as the existing means to report any issue related to
ethics and compliance.
Redeia carried out targeted training sessions covering certain topics for especially vulnerable groups,
including:
•
An artificial intelligence (AI) awareness session for all Redeia staff on advances in AI and the importance
of responsible and efficient usage of this technology.
•
Specific sessions for Elewit and Red Eléctrica Infraestructuras employees in the Canary Islands on the
criminal and anti-bribery compliance management systems designed for these subsidiaries, including
training on the specific risks relevant to each area.
•
Six tailored workshops on personal data protection aimed at different groups that handle personal data
within the Company. The objective of this training was to promote and maintain responsibility and a
proactive approach to personal data protection by the various areas of the organisation, ensuring good
governance and helping to reinforce a corporate privacy culture across the organisation.
Additionally, as described in previous sections, a pulse survey to measure perception of Redeia's
employees regarding the Company's ethical culture and compliance system, as well as to assess their
knowledge about the Ethics and Compliance Channel and its guarantees, was conducted in 2024. The pulse
showed a level of satisfaction of over 90% with the Company's ethical conduct and a level of awareness and
use of the Code of Conduct and Ethics and the Ethics and Compliance Channel of over 83%. Over 55% of
Redeia staff participated in the survey. This initiative helps identify areas for improvement and areas where
the compliance culture needs to be reinforced within the organisation.
Also in 2024, the Redeia Compliance Forum continued its activity, bringing together compliance officers from
the Company's subsidiaries to strengthen coordination and reporting across the organisation's compliance
areas. The Compliance Forum held four sessions during the year.
The Company also carried out continuous internal communication initiatives in 2024, highlighted by the
publication of informative pieces and awareness initiatives on the following:
•
Redeia's alignment with the new EU Artificial Intelligence Act.
•
ISO 37002 certification of the Ethics and Compliance Channel management system.
•
Renewal of UNE 19601 and ISO 37001 certifications for Redeia's criminal compliance and anti-bribery
management systems, respectively.
•
Improvement of Redeia's integrity and human rights due diligence model.
•
Global Ethics Day awareness campaign.
•
Celebration of Data Protection Day in Europe activities.
•
Commitments related to accepting gifts during the Christmas season.
Ethics and compliance training programmes cover 100% of Redeia employees. This includes the Company's
management team, i.e., personnel especially exposed to high-risk situations. Redeia provides the
Company's professionals with the tools to resolve potential risks in performing their duties and
responsibilities, as well as the existing means to report any issue related to ethics and compliance.
c. Management of relationships with suppliers. G1-2.
The procurement of goods and services, supported by the procurement procedure, adheres to principles of
non-discrimination, mutual respect, proportionality, equal treatment and transparency, in compliance with RDL
3/2020.
To uphold these principles and prevent collusion or price-fixing, the Company has implemented the following
control measures:
•
Segregation of duties in procurement and approval processes.
•
Mandatory supplier qualification for participation in procurement processes.
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Consolidated Management Report 2024
•
Publication of the classification system in the OJEU.
•
Continuous supplier monitoring to ensure compliance with Redeia's requirements and the Code of
Conduct for Suppliers.
•
Controller contracts for data protection.
•
Verifications of bank account holders.
•
Impact assessment and monitoring
•
Application of due diligence in integrity and human rights of suppliers.
•
Minimum number of bidders, all of which must be qualified suppliers for the respective supply.
•
IT systems covering the procurement process that are parameterised for tracing and:
◦
Allowing suppliers to make contractual documentation exceptions and clarifications of their bids.
◦
Preventing buyers from seeing bid content early.
◦
Sharing communications and adjustments among all bidders for fair negotiations
◦
Managing economic bids in tendering processes securely.
◦
Identifying abnormally low bids, defined as those where the difference between the lowest and second-
lowest exceeds a predefined threshold. In these cases:
▪
The supplier is asked to ratify their bid.
▪
Once ratification is received, the supplier must justify its viability to determine whether the bid is
abnormally low and provide supporting documentation in the procurement file.
Sustainable supply chain management model
Redeia has a responsible supply chain management model based on principles of non-discrimination, mutual
recognition, proportionality, equal treatment, transparency, and fair competition. This model aims to ensure
responsible and efficient procurement by aligning suppliers and subcontractors with Redeia's environmental,
social, and governance (ESG) values and adopting a risk-based approach. The Procurement Operational
Plan, aligned with Redeia's 2021–2025 Strategic Plan, outlines specific actions to enforce actions related to
energy transition and connectivity, efficiency, innovation and technology, and sustainability.
General background, country and industry risk
Redeia continuously monitors its suppliers to control risks associated with the procurement of goods and
services. Given the current geopolitical instability, no qualified supplier or manufacturing facilities are located
in conflict-affected countries. Additionally, no qualified supplier's parent is based in a country with high integrity
risk.
Through continuous supplier monitoring, Redeia maintains oversight of 100% of its supplier portfolio in issues
related to insolvency risk or financial distress, as well as irregular payments to third parties. As part of its
sustainability strategy, Redeia has a commitment to continue working with suppliers encountering financial
difficulties, actively managing the associated risk. It applies this risk management approach across the entire
supplier portfolio, including SMEs.
For suppliers in countries considered high risk for human rights, it conducts ongoing monitoring and social
audits to assess risks and, as appropriate, establishes risk mitigation measures.
None of Redeia's supplies are linked to the arms trade or other military-related activities.
Redeia has also conducted an internal assessment of the impact of applicable due diligence regulations,
adjusting its internal processes and procedures accordingly.
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207
Supplier market for security of supply
To mitigate risks associated with rising demand for goods and services to achieve the energy transition
objectives, Redeia was proactive in 2024 in anticipating needs, providing visibility to the market.
To maintain an optimal portfolio for meeting its needs, Redeia reduced the risk linked to major suppliers in
2024 by expanding the supplier portfolio to add new suppliers through scouting. This process was conducted
nationally and internationally, prioritising local sourcing wherever possible.
ESG risks
The Company extends sustainability principles throughout its supply chain. The Code of Conduct for
Suppliers, which hails from Redeia's Code of Conduct and Ethics, establishes the obligation of this stakeholder
group to respect human rights and the environmental, among other sustainability matters. On accepting the
general contracting conditions, all of the Company's suppliers undertake to comply with the Code of Conduct
for Suppliers and extend this commitment to their own supply chain, which may be substantiated via social
audits.
ESG scoring to highlight risk monitoring
The ESG scoring is based on identifying supplier maturity in environmental, social, and governance (ESG)
aspects and benchmarking against the average obtained by suppliers that are members of the community
used in the sector. Suppliers of recurring goods and services are subject to continuous monitoring via Redeia's
risk management platform.
Sustainable management of supply chain risks and impacts
Key initiatives implemented by Redeia as part of its sustainable supply chain management include the
identification and ongoing monitoring of the risks and impacts related to sustainability of supplies and,
therefore, the potential requirements it may impose.
A total of 57 suppliers are included in the responsible procurement management model, which aims to
integrate sustainability criteria (e.g., climate change and circular economy) into the procurement decision-
making process. As a general rule, the ESG score is considered among the criteria for tiebreakers in tenders.
Supplier qualification
Redeia continuously reviews and updates its requirements of suppliers regarding occupational health and
safety, ethics and working conditions, the environment and diversity, embedding them in the qualification
process. Additionally, the Company assess its supplier portfolio periodically to identify supplies where
introducing new competitors would be warranted. Through the supplier qualification area on the corporate
website, the Company provides suppliers with a list of all supplies, works, and services that match their profile.
This enables suppliers to review the minimum requirements in advance, initiate registration, manage the
qualification processes, as well as to update their business and contact information at any time. Failure to
comply with any technical or business sustainability requirements that give rise to impacts may result in a
change in the supplier's qualification status or even their disqualification.
Redeia's objective in this phase is to process all applications for qualification on the premise that no supply or
service may be awarded to a supplier that is not pre-qualified. Requirements of suppliers vary depending on
the supplies, as identified in section "b. Material impacts, risks and opportunities and their interaction with
strategy and business model. SBM-3" of chapter 3.2 ESRS 2 - Value chain workers".
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d. Prevention and detection of corruption and bribery. G1-1, G1-3
Redeia has a Guide for the Prevention of Corruption: Zero Tolerance, the latest version of which was
approved by the Board of Directors in 2023. It outlines the corporate value and provides a series of basic
guidelines for preventing risks of corruption and fraud.
The guide, with scope to cover (internal) fraud, was updated with the participation of Transparency
International and took account of best practices and international standards in this field (ISO 37001).
The guide contains seven specific guidelines of conduct to prevent corruption and fraud, as contained in the
Code of Conduct and Ethics, which include Redeia's commitment, conduct guidelines, and the Company's
mechanisms for prevention and detection. It also includes a set of practical scenarios to enhance awareness
about situations related to the application of each conduct guideline.
The Criminal Compliance and Anti-bribery Committee is composed of a team of professionals responsible
for investigating and making decisions on matters brought to their attention due to their role or reported from
specialists across different areas of the Company. These professionals must act with confidentiality and
independence from their hierarchical or subordinate relationships and those involved in investigations related
to potential criminal offenses, breaches of the Code of Conduct, or other situations prohibited in the Company.
All Redeia's personnel are under obligation to know and abide by the content of the guide, and to adapt their
conduct to the principles, commitments and controls established in it. Specifically, the exemplary conduct of
directors and the management team, with their explicit commitment and support, is an essential aspect of its
implementation.
In accordance with the guidelines prohibiting contributions to political parties or organisations, no donations,
subsidies, or loans were made to political parties on Redeia's behalf in 2024. In the same vein, no complaints
were filed in connection with potential cases of corruption and no Redeia company was investigated or found
guilty by any court in connection with acts of non-compliance linked to corruption.
Lastly, the commitments and conduct guidelines set out in Redeia's Code of Conduct and Ethics, under the
principle of transparency in interest management, explicitly apply whenever Redeia engages in any activity
that may be directly or indirectly related to interest representation, commonly known as lobbying.
No complaints were filed in 2024 in connection with potential instances of corruption or money laundering at
any Redeia company, and no Redeia company was investigated or found guilty by any court in connection
with acts of non-compliance linked to corruption or money laundering.
11.4.1.3 Metrics and targets
a. Confirmed incidents of corruption or bribery
In 2024, no Redeia company was investigated or found guilty of any non-compliance in connection with the
organisation's criminal risks. Redeia was also not convicted of and did not receive any fines for violation of
anti-corruption or anti-bribery laws.
Moreover, the number of confirmed incidents relating to business contracts terminated or not renewed due to
violations related to corruption or bribery was zero.
b. Payment practices
The payment terms are included in the contractual documentation and the issued purchase order, which the
supplier accepts upon receipt. Suppliers may use the e-invoicing service to facilitate invoice management.
Among other benefits, this can reduce the average collection period.
The process for procuring goods and services is subject to regular audits to ensure compliance with the
established control mechanisms. These are conducted both internally and by independent external auditors.
Redeia has also implemented measures to prevent irregular payments to third parties. Subcontractors have
channels available to report this type of situation, such as the Ethics and Compliance Channel or the
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209
Procurement Support and Helpdesk (ASA). These reports are treated as impacts for monitoring purposes.
The objective is to restore the situation or, as appropriate, assess appropriate actions with the supplier.
The average time for paying an invoice from the start date of the contractual or statutory payment period is 44
days. The standard payment term for the main supplier categories for reverse factoring via bank transfer is 60
days, with 72% of payments made under these standard terms. The number of legal proceedings currently
outstanding for late payments is zero. Data include Hispasat.
The Company has no legal proceedings currently outstanding for late payments.
11.4.2 GUARANTEED QUALITY OF SERVICE
11.4.2.1 Strategy
a. Interests and views of stakeholders. SBM-2
Redeia works continually to develop public engagement processes and strengthen its relations with
stakeholders, as described in section 1.1.4 Strategy and business model; b) Interests and views of
stakeholders SBM-2 of this report. The aim is to align its strategy and business model with stakeholders'
expectations, ensuring that they are taken into account.
Specifically, in accordance with Royal Decree 1955/2000, Order ECO 797/2002, and operation procedure 9,
Redeia has drawn up an immediate communication protocol with the relevant distributor in the affected
area in the event of a supply interruption in the transmission grid to gather detailed information on the impact.
This guarantees that the interests of all parties are considered. The information includes:
•
The transmission, distribution and/or electricity system components involved and affected, along with the
duration of the outage, specifying whether the data are recorded or estimates.
•
The direct impact on end consumers for each affected grid connection point, including the name of the
consumer or distributor, location, type of demand (urban, semi-urban, concentrated rural, or dispersed
rural), number of affected customers, interrupted demand, energy not supplied, and duration of the outage.
•
The impact on generation, specifying the affected groups, the interrupted generation capacity (in MW) and
duration of the outage, specifying whether the data are recorded or estimates, as well as any confirmed
damage.
This approach ensures that all stakeholders' needs and concerns are considered, thereby promoting efficient
and responsible electricity system management.
In addition, Red Eléctrica has a Customer Service Portal, which can be used to submit enquiries related
about those services. It includes a specific category which consultations related to transmission network
service quality.
For more general questions, there is the DÍGAME service, which has been providing professional services
since 2008, handling general enquiries related to Red Eléctrica from external stakeholders using a variety of
communication channels (telephone, email, web form, post, or registered post). The service is manned by
employees of Fundación Juan XXIII Roncalli, a non-profit entity that facilitates the workplace integration of
people with disabilities.
b. Material impacts, risks and opportunities and their interaction with strategy and business
model. SBM-3
The outcome of the process to identify impacts, risks and opportunities in the double materiality assessment
performed in 2024 led to the identification of one positive impact, as presented in chapter 1.2 Materiality
assessment, section 1.2.4 Material impacts, risks and opportunities. SBM-3.
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Impacts
Impact
Position in
the value
chain
Positive /
Negative
Current /
Potential
Time
horizon (*)
Current/anticipated
effects on the
business model,
value chain,
strategy and
decision-making
How the
impacts
affect people
and the
environment
Interaction of
the impact
with strategy
and business
model
Link
between
impacts and
business
activities
and
relationships
Assessment of the
resilience of the
strategy and
business model
regarding its capacity
to address material
impacts
Guarantee of
the quality of
electricity
supply
Own
operations
P
Current
S
Implementation of
measures to ensure
security of supply
Security of
supply is a key
element of
economic and
social
development.
Guaranteeing
supply is part
of Redeia's
purpose.
Redeia
implements
measures to
ensure
security of
supply
Redeia's purpose
includes guaranteeing
electricity supply, so its
strategy revolves
around this.
*Time horizon: S (Short term), M (Medium term), L (Long term).
The identified impact, "Guarantee of the quality of electricity supply", falls under the specific topic "Security
of supply". This impact arises from the strategic priority of ensuring that users receive reliable and continuous
electricity supply. Redeia offers high quality service by maintaining robust and reliable infrastructure, and
adequately managing the operation of the electricity system.
11.4.2.2 Impact, risk and opportunity management
a. Policies adopted to manage service quality. MDR-P
Redeia is actively involved in the development of the Transmission Network Development Plan 2021-2026,
approved and published by the Ministry for the Ecological Transition and the Demographic Challenge
(MITERD). This plan outlines the necessary developments in the electricity transmission grid to ensure that
Spain's electricity supply remains secure, high-quality, and increasingly renewable. This plan prepares and
adapts the size of the transmission grid so that it not only meets current demand, but is also capable of
addressing new consumption and serve as a facilitator of the ecological transition. The plan is available on
the website: Network Development Plan. (Note: the additional disclosures included in the links are outside the
scope of EY's assurance).
The planning process covers a period of six years, as stipulated in current legislation (Law 24/2013) and
involves the General Statement Administration, through MITERD as the planning authority, regional
governments, the National Markets and Competition Commission, and Red Eléctrica (as the system operator),
along with other electricity sector stakeholders. It also has representation from civil society.
Red Eléctrica assesses the needs and expectations of key stakeholders through a comprehensive process
that includes consultations and dialogue with regulators, customers, local communities, shareholders, and
employees, among others. Consultation and participation mechanisms were implemented in drawing up the
Network Development Plan 2021–2026 to ensure that the interests and concerns of these groups were
considered. This approach guarantees that the procedures are balanced, sustainable and aligned with the
expectations of all parties involved, thereby fostering mutual trust and cooperation.
Key features of the Network Development Plan 2021–2026:
•
New infrastructure projects in the transmission grid to ensure electricity supply while upholding principles
of economic efficiency and financial sustainability of the electricity system.
•
Physical, technological, and environmental feasibility.
•
Development of interconnections between electrical systems.
•
Greater utilisation of the existing network.
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211
•
Greater integration of renewable generation.
Due to its importance, the plan includes a specific annex on quality of service of the transmission network
(Annex 3, Section 6) covering key aspects regarding topology and meshing of the transmission network, and
degree of support from the distribution network, and reflecting their impact on service quality, especially
continuity of supply.
In addition planning, guaranteeing electricity supply implies complying with technical regulations applicable to
various system installations, which are detailed in existing European and national legislation, as well as third-
party standards or initiatives that the Company undertakes to respect. Note that, because of the technical
specificity, operating procedures are essential for the system to function. These procedures are published in
Spain's Official State Gazette (BOE) and are available for consultation on Red Eléctrica's website: Operating
procedures. (Note: the additional disclosures included in the links are outside the scope of EY's assurance).
Regarding organisational structure, the Operations Department of Red Eléctrica is the primary body in charge
of system operation. Under Article 30.2(a) of the Spanish Electricity Sector Act, the system operator's functions
include forecasting and controlling the short- and medium-term security of supply levels in both the mainland
and non-mainland systems.
According to article 26.3 of Royal Decree 1955/2000, governing system quality and operation, the system
operator and transmission network manager is responsible for issuing operational instructions to owners of
electrical installations regarding system operation. It must also manage the necessary ancillary services to
ensure overall system quality.
Article 19.4 of that Royal Decree states that transmission service quality must be ensured at both a general
level and at each grid connection point and each installation. According to article 27.1, the transmission
operator's service quality is measured using the Availability Index (AI) of its facilities.
b. Actions and resources in relation to service quality. MDR-A
Red Eléctrica carries out transmission network development and maintenance activities to guarantee secure
and reliable electricity supply. These measures are designed to prevent, mitigate, and remediate both negative
impacts and risks, thereby ensuring that a high standard of service quality is maintained. These contribute
directly to the targets defined in section 4.2.3 Metrics and targets; a) Metrics in relation to service quality.
MDR-M in this chapter.
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Key actions in 2024
Action
Expected outcomes and progress
Time horizons
Geographical
scope
Capacity increases
Work to raise pylons, as increasing span heights enables transmission lines to operate at higher
temperatures, thereby increasing the transmission capacity of existing lines.
Network
Development Plan
2021–2026
Spain
Reactances
Actions to resolve technical constraints associated with voltage control. The 2021-2026 Network
Development Plan includes actions that fall under the category of Operational Requirements, consisting of
the installation of 14 new reactances between 2021 and 2026.
Network
Development Plan
2021–2026
Spain
Renewal of
transmission
network assets
Actions included in the 2021-2026 Network Development Plan, under Operational Requirements,
amounting to 346 million euros with the aim of ensuring security and continuity of supply in light of the
gradual ageing, technological obsolescence and spare part shortages, while fostering the integration of
renewable sources of energy and avoiding any adverse effects on the environment.
Network
Development Plan
2021–2026
Spain
Accesses
Commissioning of new bays to evacuate renewable energy, feeding the railway axis and connections of
eligible consumers.
Network
Development Plan
2021 2026
Spain
Galicia-Portugal
Interconnection
Reinforcement of interconnection capacity with Portugal for the Iberian Electricity Market (MIBEL), helping
to integrate both existing and future renewable energy in the Iberian Peninsula to deliver the targets set by
the European Union.
Commissioning in
2024 and 2025
Spain
Puerto del Rosario-
Gran Tarajal
Reinforcement of the Fuerteventura network, as well as integration of renewables and resolution of
technical constraints.
In November 2023, the Gran Tarajal was commissioned, as well as the 132/66 transformer for connection
to the existing 66 kV park. The Pto. del Rosario-Gran Tarajal line, with 88.6 km of circuit, entered into
operation in October 2024.
Commissioning in
2023 and 2024
Spain
Interconnection with
France (Bay of
Biscay)
Axis to continue raising interconnection capacity with France and deliver the EU energy objectives,
enabling access to sustainable, competitive, and secure energy.
Commissioning of
the first link
expected in 2027
and the second in
2028
Spain
Interconnection
between Mainland
Spain and Ceuta
Improved security and quality of electricity supply in Ceuta is the goal of this initiative by integrating its grid
with the mainland system.
Commissioning
expected in 2025
Spain
La Gomera –
Tenerife
interconnection
Works to link up the electricity systems of both islands. The quality and security of supply will be
increased and production costs lowered by improving power generation efficiency and enabling greater
integration of renewable energy.
Commissioning in
2024 and 2025
Spain
Support to
distribution
Actions to improve the security of supply of demand, support vegetative growth, create new transmission-
distribution supports and facilitate the evacuation of renewables in the distribution network.
Network
Development Plan
2021–2026
Spain
Regarding financial resource allocation, both transmission and electricity system operation are capital-
intensive activities, with investments maturing over a long period. In addition, these assets are remunerated
over long periods of time. This is why the Group's debt is primarily long-term and fixed-rate. Execution of the
current Network Development Plan 2021–2025 envisages a total investment of 5,000 million euros.
Approximately 75% is earmarked for the transmission grid, international interconnections, storage and system
operation. So far, 2,943.8 million euros have been invested (sum of 2021 to 2024), with 976.3 million euros of
capital expenditures (CapEx) and 356.3 million de operational expenditures (OpEx) in 2024 related to
maintenance of transmission network assets in Spain.
11.4.2.3 Metrics and targets
a. Metrics in relation to service quality. MDR-M
Redeia has defined a series of metrics to monitor the efficiency of its actions and ensure the effectiveness of
its initiatives.
Service quality standards for Spain's Electricity Transmission Network are established in Royal Decree
1955/2000 (RD 1955/2000) of 1 December 2022 and CNMC Circular 5/2019 of 5 December 2019. Additional
technical details were included in the draft Ministerial Order approving supplementary technical instructions
on service quality index and the procedure for calculating and measuring service quality in the transmission
network, and setting out the responsibilities of transmission agents and the system operator. This draft Order
was submitted by Red Eléctrica on 26 November 2003 to the relevant ministry, which at the time, was the
Ministry of Economy.
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213
For measuring continuity of supply, article 26 of RD 1955/2000 establishes the following overall quality
indicators in the transmission network:
•
Energy not supplied (ENS): measures the energy cut from the system (MWh) during the year due to
service interruptions in the grid. For these purposes, only interruptions lasting over a minute are recorded.
•
Average interruption time (AIT): the relation between the energy not supplied and the average power of
the system, expressed in minutes.
The indicators are obtained broken down by the various electricity systems comprising the Spanish electricity
system where there is a transmission network and Red Eléctrica is both system operator and transmission
network manager. Data are reported for the following groups of systems: the Spanish mainland electricity
system (SEPE), the Canary Islands electricity systems (SEC), and the Balearic electricity system (SEB).
The system operator uses the Service Quality Management (GCS) application to record, calculate, and
quantify quality of supply indicators. This system aggregates all necessary data for calculations, ensuring
integrity and auditability.
The data are audited annually by an independent firm, which issues a findings report to the CNMC, MITERD,
and regional governments, available on Red Eléctrica's website (https://www.ree.es/en/datos/transmission).
(Note: The additional disclosures included in the links are outside the scope of EY's assurance).
2024
2023
Mainland transmission grid*
Grid availability (%)
97.97 97.61
Energy not supplied (ENS) in MWh
29.49 127.8
Average interruption time (AIT) in minutes
0.067 0.293
Balearic Islands transmission grid*
Grid availability (%)
98.55 97.84
Energy not supplied (ENS) in MWh
0.27
5.01
Average interruption time (AIT) in minutes
0.024 0.439
Canary Islands transmission grid
Grid availability (%)
98.80 98.93
Energy not supplied (ENS) in MWh
2.10 24.05
Average interruption time (AIT) in minutes
0.126 1.442
* Data for the overall transmission grid, including assets not owned by Red Eléctrica.
b. Tracking effectiveness of policies and actions through targets. MDR-T
For service quality indicators, Royal Decree 1955/2000 establishes reference thresholds that define the
targets Red Eléctrica must meet as Spain's TSO, with the current year as the base year. By accepting the
regulator-defined thresholds, the Company ensures that these targets consider stakeholders' expectations.
•
Energy not supplied (ENS): 1.2 x 10⁻⁵ of electricity demand at power station busbars (determined based
on annual demand at power station busbars of each year studied).
•
Average interruption time (AIT): 15 minutes/year.
These reference levels must be met annually, with no interim targets. Notably, over the past 20 years, the
results for these indicators—taking the entire transmission grid—have remained below the thresholds
established in the Royal Decree.
If the required ENS and AIT thresholds are not met, the system operator and transmission network manager
will analyse the causes behind the shortfall. Where it is due to structural weaknesses in the transmission grid,
the appropriate measures to achieve the quality demanded must be included in a transmission network
development plan. Redeia monitors these metrics on a monthly basis.
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Consolidated Management Report 2024
Beyond the regulatory limits set for the main continuity of supply indicators (ENS and AIT), Red Eléctrica
implements initiatives to the minimise impact outages on end consumers. Thanks to this commitment the
Company's service quality levels are significantly better than regulatory baseline values in service quarterly
(e.g., AIT levels well below the 15-minute reference threshold in RD 1955/2000).
Historical trend of Average Interruption Time (AIR) in Spain's electricity system
11.4.3 INNOVATION AND TECHNOLOGY APPLIED TO THE BUSINESS
11.4.3.1 Strategy
Elewit was founded in 2019 to offer solutions to the new challenges in the electricity and telecommunications
sectors. Since then, it has continued to roll out all the necessary tools to capture and bring to fruition initiatives
and projects at any stage of maturity that could further improve innovation at Redeia.
Elewit's innovation model is underpinned by four key pillars. Two of these are interrelated (enhancing
Redeia's operational efficiency and fostering a culture of innovation within Redeia), one is structural
(strengthening Elewit's economic and financial sustainability), and the fourth is a governance pillar:
•
Enhancing Redeia's operational efficiency: during 2024, Elewit aligned its focus on technological
innovation with the business objectives and resources projected to 2030. Together with Redeia, it drew up
and agreed upon a single technological roadmap across all Redeia business units and developed an
industrialisation and deployment model to accelerate the adoption of innovative solutions.
•
Fostering a culture of innovation within Redeia: the focus was on converting Elewit into a talent
attraction hub for Redeia, expanding its internal mobility programmes and considering them in employees'
career development pathways. Additionally, it reformulated the scope and frequency of the
intrapreneurship programme, aligning them with Redeia's challenges with a vision to 2030.
•
Strengthening Elewit's economic and financial sustainability: during 2024, Elewit worked on
reinforcing its economic and financial sustainability, unlocking the value of investments supporting
innovation with a 2030 horizon, reviewing and defining return-based items, and integrating success fee
schemes with milestone payments. A new cost model was also developed for Elewit, serving as the basis
for an economic model that ensures financial sustainability for innovation within Redeia.
•
Governance: the governance of the innovation process was reviewed with the aim of simplifying and
streamlining decision-making on innovation, while maintaining transparency, integrity, and accountability.
a. Interests and views of stakeholders
At Elewit, the purpose of its stakeholder engagement is to foster active and ongoing collaboration that enables
it to effectively identify and address challenges and opportunities in the electricity and telecommunications
Consolidated Management Report for 2024
215
sectors. This engagement helps to align innovation initiatives with the needs and expectations of our partners,
customers, and society at large, ensuring that technological solutions generate a positive and sustainable
impact.
Over the course of 2024, Elewit continued to develop and unlock the value of the technological innovation
ecosystem built up over the past five years. The company currently has a network of over 100 partners and
collaborators, including entrepreneurs, universities, technology centres, other corporations, and institutions,
classified according to their specialisation in the various technological verticals. This ensures that there is a
continuous source of new ideas and knowledge, while also identifying opportunities for project development
and investment.
This way, Elewit embeds stakeholder engagement into its decision-making process, incorporating their
opinions and suggestions in the development and improvement of its innovation projects. For instance, the
ideas and feedback received at meetings with universities and technology centres are used to fine-tune and
optimise its technological solutions, ensuring that they address both real market needs and the needs of
society.
With a view to correctly managing and measuring the value contributed by these external partners, in 2024
an impact measurement model was devised for tracking the various collaboration mechanisms rolled out by
Elewit. The aim was to help quantify the contribution of these collaboration mechanisms, evaluate their
effectiveness, and support strategic decision-making based on their productivity through an annual report. As
part of this initiative, a calculation methodology was developed to measure the induced benefits of the
technological solutions adopted up to the end of 2023. The measurement model is based on two key pillars:
•
Measuring the tangible benefit of the solutions adopted by Redeia within the Group through its different
business cases where profitability and impact are measured.
•
Measuring the intangible benefit, by assessing the qualitative impact of solutions that do not have a direct
financial impact, e.g., employee health and safety, emissions reductions within Redeia's operations, and
translating it into economic terms.
According to the result of this assessment, Elewit generated induced benefits amounting to 50.1 million euros
from Elewit to Redeia, with a tangible benefit of 43.9 million euros and an intangible benefit of 6.2 million
euros.
Elewit's governing, management, and supervisory bodies are primarily organised around the Innovation
Steering (IST) Committee, with additional oversight by Redeia's Board of Directors. These entities are briefed
regularly on stakeholder opinions and needs through continuous communications, ensuring that strategic
decisions are made with a holistic view of our stakeholders' concerns and expectations.
Elewit gains insight into the interests and views of its key stakeholders regarding its strategy and business
model through in-depth assessments carried out as part of its due diligence processes and the assessment
of the sustainability context as part of its materiality assessment. These efforts enable it to identify and
prioritise stakeholder expectations and concerns, ensuring that strategic and operational decisions are aligned
with stakeholders' needs and contribute to the company's sustainable development.
b. Material impacts, risks and opportunities and their interaction with strategy and business
model
Redeia pursues a systematic approach to identifying and assessing the material impacts, risks and
opportunities in relation to innovation, as described in chapter 1.2 Materiality assessment. Section 1.2.4
Market impacts, risks and opportunities. SBM-3 in that chapter presents the positive impact and opportunity
identified in this chapter.
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Consolidated Management Report 2024
Impacts
Impact
Position
in the
value
chain
Positive /
Negative
Current /
Potential
Time
horizon
(*)
Current/anticipat
ed effects on the
business model,
value chain,
strategy and
decision-making
How the impacts
affect people and
the environment
Interaction of the
impact with
strategy and
business model
Link between
impacts and
business
activities and
relationships
Assessment of
the resilience of
the strategy and
business model
regarding its
capacity to
address material
impacts
Innovation
and advances
in technology
or
digitalisation
linked to
Redeia's
business
activities that
enhance the
services
provided
Own
operations P
Current
S
Innovation and
advances in
technology or
digitalisation
linked to Redeia's
business activities
that enhance the
services provided
Innovation and
technological
advances in
energy and
connectivity drive
the economic and
social
development of
people, while
contributing to
environmental
protection
As a core pillar of
Redeia's 2021-
2025 Strategic
Plan, innovation
and technology
and therefore an
essential aspect
of the
management
approach
Development of
innovation and
technological
advances in
energy and
connectivity
allows for
significant
improvements in
Redeia's business
operations:
The 2021-2025
Strategic Plan
integrates
innovation and
technology as key
elements
*Time horizon: S (Short term), M (Medium term), L (Long term).
Opportunities
Description of the
cause of the
opportunity
Position in
the value
chain
Time
horizon (*)
Current/anticipated effects on the
business model, value chain,
strategy and decision-making
Current financial effects that arise
from opportunities.
Assessment of the resilience of the
strategy and business model
regarding its capacity to address
material impacts
Adaptation to and/or
anticipation of market
demands by
implementing
technological
advances
Own
operations
S
Greater adaptation to and/or
anticipation of market demands by
implementing technological advances
Identification of business
opportunities and efficiency of
operations
Adaptation to and/or anticipation of
market demands by implementing
technological advances imply having
a more resilient business model
*Time horizon: S (Short term), M (Medium term), L (Long term).
This process begins with the identification of risks and opportunities through a comprehensive assessment of
the value chain, covering both its own operations and interactions with direct and indirect external
stakeholders. The Company uses risk assessment tools and engages with stakeholders to gain a holistic view
of potential impacts. The assessment process considers the Group's entire value chain in order to identify and
assess impacts that could arise outside its own operations.
Redeia ensures adequately visibility across its value chain through technological monitoring, which in 2024
was transformed into a more concrete and coordinated process led by Elewit. The primary objective is to
create technology-driven business opportunities, particularly where they only fit the needs of those business
areas. It continuously updates technology radars to achieve this. These target the most important technologies
(classified in accordance with Redeia's areas of operation): their potential impact on operations, internal
assessment status, and level of technological maturity. The radars track both existing technologies and their
Consolidated Management Report for 2024
217
development, and desirable or aspirational technologies or developments, which still lack practical
applications. Prospecting is performed on these technologies, leveraging insights from suppliers and relevant
industries, scientific research, and internal experts. Deliverables are updated in the innovation ecosystem with
new companies and proposals, in addition to different types of publications, from informative, to technical
topic-specific publications targeting specialists in each field.
Taking the results of the double materiality assessment and applying the quantitative thresholds described in
detail in the corresponding chapter, Redeia identified a set of material impacts, risks, and opportunities (IROs),
as follows:
Opportunity
•
Adaptation to and/or anticipation of market demands by implementing technological advances:
the Company is committed to the development of innovations and technological advances, especially in
the area of digitalisation, to enhance the provision of its services. Redeia considers this opportunity as a
positive impact that is already being seen on the Company's own operations and a material impact in the
short term.
Impact
•
Innovation, technological development, advances in digitalisation associated with Redeia's
business activities that enhance the services provided: by implementing innovative services and
leveraging opportunities for digitalisation, the Group can boost its efficiency, productivity and
competitiveness. This not only helps meet evolving customer needs but also ensures the Company
remains a key player in a rapidly changing business landscape, maximising new growth opportunities.
This positive impact already occurs on the Company's own operations, with a short-term time horizon.
Financially, this opportunity has the potential to boost profits, improve cash flows, and strengthen market
positioning. It may also lower cost of capital and improve access to finance, highlighting the Company's ability
to secure financial services.
11.4.3.2 Impact, risk and opportunity management
a. Policies related to innovation and technology
Redeia has an Innovation Policy designed to enhance technological leadership and promote innovation,
allowing Redeia to move forward into the future in a sustainable manner. This policy is related to material
impacts, risks and opportunities in relations to sustainability. Compliance is monitored in accordance with the
principles and conduct guidelines set forth in Redeia's Code of Conduct and Ethics.
Key principles of the Innovation Policy include:
•
To innovate so that Redeia sustainably fulfils its mission of being useful to society and its stakeholders.
•
To promote big changes, but starting with small lessons.
•
To promote innovation continuously and promptly, through iteration.
•
To foster a culture of open innovation and creativity.
•
To ensure that innovative solutions generate value for Redeia as well as other participants in the
ecosystem.
•
To be alert to changes in the environment and technological advancements.
•
To drive innovative entrepreneurship and buy into innovative companies and technology funds.
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Consolidated Management Report 2024
•
To guarantee the protection of industrial and intellectual property generated by innovation processes and
projects.
This Policy is applicable to all companies in which Redeia has a controlling interest and all of the operations
of the organisation in all geographies where the Company operates. At investees over which Redeia does not
have effective control, principles aligned with those enshrined in this policy are encouraged. Affected
stakeholders include employees, business partners, and society at large.
The most senior level in Redeia's organisation that is accountable for implementation of the Innovation Policy
is the Executive Committee, which approved the second version of the Innovation Policy on 22 June 2021.
To ensure that the policy is inclusive and relevant, Redeia took account of the interests of its key stakeholders,
including employees, business partners, and society at large. This document is made available to both
potentially affected stakeholders and stakeholders that need help implementing it through official publications,
as well as internal and external communications.
b. Actions and resources related to innovation and technology
The Company carries out a range of initiatives designed to leverage opportunities arising from adaptation
and/or anticipation of market demands by implementing technological advances and leveraging the positive
impact of innovation and advances in technology or digitalisation linked to the Company's business activities
that enhance the services provided.
Actions in 2024 related to the generation and monitoring of new business logics
Elewit continued to work on consolidating its open innovation tools as a source for generating startups and
new business logics/models, as well as a driver of Redeia's cultural transformation. These include the existing
intrapreneurship (DESPEGA) and Venture Client programmes, and the launch of the New Ventures
programme.
The DESPEGA programme included four innovative projects aimed at developing a minimum viable project.
The four projects had up to six months of additional time for development.
•
Interference Detection (HISPASAT).
•
SafeLightning – Additional safety in earthing (Red Eléctrica Northern Regional Branch).
•
Downloads App (Red Eléctrica Northern Regional Branch).
•
Spare Parts Marketplace (Redeia's Procurement Dept.).
The new Venture Client programme focuses on testing and integrating startup technologies that significantly
contribute to delivery of the sustainability goals, enhance critical infrastructure resilience, contribute to
business sustainability, or increase process efficiency. Examples include:
•
DeNexus: Development and evaluation of a tool for managing cyber risks in the electricity transmission
grid.
•
Ocean Ecoestructures: Adapting micro-reefs for the generation of marine biodiversity.
•
Navgar. Streamlining business project management through digital platforms.
•
Asset Cool: Evaluation of electricity conductor coating to boost power transmission capacity.
Actions in 2024 related to adoption of innovative technological solutions and induced benefits
•
Development of renewable generation forecasting models (CONVOL Project), employing various methods
and algorithms to enhance prediction accuracy. It uses simple neural networks to evolve and improve
existing models, as well as deep convolutional neural networks (CNNs) image recognition for application
in wind energy forecasting, achieving excellent results.
Consolidated Management Report for 2024
219
•
Enhancement to self-consumption electricity forecasting (TERRAL and ETESIAN projects), aimed at
achieving the most accurate consumption pattern as possible, as this is essential for the electricity system
operation by modelling the impact of self-consumption on demand, and identifying photovoltaic self-
consumption based on consumption pattern data through the estimation of installed photovoltaic capacity
for identified self-consumption.
•
Enhancement of predictive analysis for inter-area oscillation damping (TALOS project), with the
development of an AI system that detects patterns to predict damping, enabling us to anticipate risk of the
damping factor falling to inadequate levels and implement preventive measures tailored to each situation.
A new solution was also developed (SIROCO project / enhancement of GridCal and Newton solutions)
that replaces the commercial applications used currently to perform planning studies based on new load
flow or system optimisation studies.
•
Development of innovation projects in the satellite sector, aimed at improving integration with terrestrial
networks, developing new use cases via satellite, and overcoming industry-related niche barriers, e.g.,
interoperability across platform providers and adoption of terrestrial industry components as part of the
5G – 6G strategy.
All these programmes enable the systematic generation of ideas and expand the vision and knowledge of the
technological ecosystem. This enables us to understand and assess, with greater accuracy, the impact of
disruptive technologies on Redeia's various businesses and operations, as well as the generation and
assessment of new business logics. These actions are planned to be completed within a short- and medium-
term time horizon, with regular evaluations to ensure their proper development.
11.4.3.3 Metrics and targets
a. Targets related to innovation and technology
Regarding the disclosure of related metrics, in 2019 Redeia established 11 sustainability goals for 2030
covering the entire Group, aligned with the Strategic Plan. The preparation in 2022 of the 2023–2025
Sustainability Plan made it possible to define interim targets to achieve Redeia's ambition by 2030 and, as a
result, to redefine and/or specify the 11 existing goals.
Redeia specified two primary objectives, described below. These goals, validated by the Sustainability
Steering Committee, the Executive Committee, and the Board Sustainability Committee, and approved by the
Board of Directors contribute directly to the achievement of the UN Sustainable Development Goals.
The following goals were set in the area of innovation and technology:
Objective for 2030
Objective for 2025
Progress in 2024
Be a benchmark in technological
innovation. Adopt 64 technological
solutions at Redeia that provide solutions
to the Group's key challenges by
delivering both tangible and intangible
Adopt 24 technological solutions at Redeia
that provide solutions to the Group's key
challenges by delivering both tangible and
intangible value.
Adoption of 25 technological solutions at
Redeia that provide solutions to the
Group's key challenges by delivering both
tangible and intangible value.
These goals are quantitative, measurable, and absolute, with 2019 as the base year. They were defined
without the use of any scientific methodologies or evidence. Although stakeholders were not involved in this
process, their interests were considered and both goals are aligned with EU sustainable innovation policies.
b. Related metrics
For disclosure of metrics related to energy transition and connectivity, Elewit managed a portfolio of 64
innovation projects carried out in 2024 and 13 innovative technological solutions adopted by Redeia's various
business units in 2024.
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Consolidated Management Report 2024
During the year, Redeia oversaw 63 innovation projects, resulting in innovation spend of 8.23 million euros. It
also launched startup investment processes totalling 3.66 million euros, bringing the total investment in
innovation and technological development to 11.89 million euros.
These metrics were not subject to third-party assurance and did not require the use of significant estimates
or assumptions.
11.5 APPENDICES
11.5.1 APPENDIX 1
a. Information on labour and employee-related issues
Number of employees by employee category
2024
2023
Redeia
Men
Women
Total
Men
Women
Total
Management team
105
62
167
104
59
163
Qualified staff
1,605
537
2,142
1,592
513
2,105
Administrative
58
122
180
66
143
209
Total
1,768
721
2,489
1,762
715
2,477
Data include Hispasat's activity. Hispasat had 541 employees in 2024.
Number of dismissals by gender, age and employee category
2024
2023
By age
Under 30
1
1
30 to 50
7
12
Over 50
5
6
Total
13
19
By gender
Women
6
4
Men
7
15
Total
13
19
By employee
category
Management team
4
1
Qualified staff
8
15
Administrative personnel
1
3
Total
13
19
Note. Data of employees with an employment relationship with Redeia: including employees who have an employment relationship at any Redeia
company under the parameters set out in Article 1 of the Workers' Statute (Estatuto de los Trabajadores), excluding those subject to a business
relationship.
Consolidated Management Report for 2024
221
Average pay and trend broken down by gender, age, employee category or equivalent metric
Women
Men
Average
total –
women
Average
total – men
Average
total
2023
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
Management
team
N/A
131,978
182,794
N/A
153,697
182,940
149,203
169,443
162,117
Qualified staff
43,106
57,260
71,386
34,157
61,322
77,369
58,111
63,834
62,442
Administrative
personnel
17,100
26,810
47,719
20,415
28,521
54,397
34,001
36,828
34,884
Total
37,616
59,297
76,139
33,002
64,346
87,799
60,810
69,068
66,687
N/A: Not applicable.
Women
Men
Average
total –
women
Average
total – men
Average
total
2024*
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
Management
team
N/A
131,903
195,179
N/A
151,803
191,220
151,294
171,512
164,050
Qualified staff
44,224
57,304
70,031
35,273
60,357
75,489
58,381
62,128
61,190
Administrative
personnel
20,527
29,555
46,543
30,211
33,072
54,432
34,637
39,773
36,292
Total
39,169
60,493
77,801
35,041
63,730
87,766
62,359
67,953
66,334
* As of 2024, the calculation of median remuneration starts from the same wage items as for the gross pay gap, i.e., "gross annual remuneration".
N/A. Not applicable
Total hours of training by employee category
2024
2023
Redeia
Men
Women
Total
Men
Women
Total
Management team
4,511
3,362
7,874
6,583
4,012
10,595
Qualified staff
57,306
18,417
75,724
58,791
17,990
76,781
Administrative
1,261
2,346
3,607
2,002
2,721
4,723
Total
63,079
24,125
87,204
67,377
24,723
92,100
Number of hours of absenteeism
Men
Women
Total
2024
2023
2024
2023
2024
2023
Hours lost to work-related accidents/ill health(1)
2,517
1,595
680
1,113
3,197
2,708
Hours lost to non-work-related ill health(2)
51,304
52,899
23,554
26,425
74,858
79,323
Hours lost to occupational health and safety(3)
53,822
54,494
24,233
27,538
78,055
82,031
Hours lost to absenteeism(4)
89,847
96,219
44,187
52,718
134,035
148,937
Hours lost to unexcused absences(5)
1,072
2,403
453
1,327
1,525
3,730
(1) Hours of absence due to occupational accidents include occupational accidents + commuting accidents
(2) Hours lost to non-work-related ill health. sum of days of temporary disability due to non-work-related illness + Illness < 3 days
(3) Hours lost to health and safety: sum of days of non-work-related temporary disability + Illness < 3 days + Commuting accidents.
To calculate this data, the annual working hours for each company were divided by the total number of calendar days per year, which is the ratio
deemed appropriate to take into account all days of absence without considering whether or not they are working days so as to be able to make them
equivalent to the number of days actually lost.
(4) Absenteeism hours: this takes into account hours lost to health and safety reasons, plus absences due to excused leave (holidays and similar
breaks are not counted).
(5) Unexcused absence hours: all other hours of unexcused absences.
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Consolidated Management Report for 2024
Total number and distribution of employees by gender, age, country and employee category.
ESRS do not include the breakdown by employee category but include the breakdown by countries where the
undertaking has at least 50 employees.
Workforce by country, gender, age and employee category
Workforce in Germany
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
1
1
1
1
0
2
8
9
7
6
17
19
Administrative personnel
1
1
6
5
2
2
0
0
3
2
2
3
14
13
Total
1
1
7
6
3
3
0
2
11
11
9
9
31
32
Workforce in Argentina
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
0
0
0
0
1
1
1
2
0
0
2
3
Administrative personnel
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
0
0
0
0
0
0
1
1
1
2
0
0
2
3
Workforce in Brazil
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
1
1
1
1
2
2
Qualified staff
0
0
12
10
2
2
3
1
14
13
5
6
36
32
Administrative personnel
6
6
2
2
1
1
3
5
8
5
2
2
22
21
Total
6
6
14
12
3
3
6
6
23
19
8
9
60
55
Workforce in Chile
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
3
4
0
0
3
4
Qualified staff
0
1
7
6
1
0
0
2
23
24
3
4
34
37
Administrative personnel
0
0
2
3
0
0
0
0
1
1
0
0
3
4
Total
0
1
9
9
1
0
0
2
27
29
3
4
40
45
Workforce in Colombia
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
2
3
19
19
1
1
18
21
57
54
0
0
97
98
Administrative personnel
8
10
21
20
1
1
2
2
10
11
0
0
42
44
Total
10
13
40
39
2
2
20
23
67
65
0
0
139
142
Consolidated Management Report for 2024
223
Workforce in Ecuador
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
1
1
0
0
0
0
1
2
0
0
2
3
Administrative personnel
0
0
2
2
0
0
0
0
0
0
0
0
2
2
Total
0
0
3
3
0
0
0
0
1
2
0
0
4
5
Workforce in Spain
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
37
39
25
20
0
0
41
41
55
51
158
151
Qualified staff
46
54
298
288
114
95
70
61
864
880
423
402 1,815 1,780
Administrative personnel
0
0
13
22
42
52
0
0
0
0
14
18
69
92
Total
46
54
348
349
181
167
70
61
905
921
492
471
2042 2023
Workforce in the United
States
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
0
0
0
0
0
0
0
0
2
2
2
2
Administrative personnel
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
0
0
0
0
0
0
0
0
0
0
2
2
2
2
Workforce in the United
Kingdom
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
1
2
1
0
0
0
2
2
0
0
4
4
Administrative personnel
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
0
0
1
2
1
0
0
0
2
2
0
0
4
4
Workforce in
Luxembourg
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
0
0
1
1
0
0
0
0
0
0
1
1
Administrative personnel
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
0
0
0
0
1
1
0
0
0
0
0
0
1
1
Workforce in Mexico
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Qualified staff
0
0
3
2
0
0
2
2
9
9
2
1
16
14
Administrative personnel
0
1
5
4
0
0
1
3
7
5
0
0
13
13
Total
0
1
8
6
0
0
3
5
16
14
2
1
29
27
224
Consolidated Management Report for 2024
Workforce in Peru
Women
Men
Total
Under 30
30 to 50
Over 50
Under 30
30 to 50
Over 50
2024
2023
2024
2023
2024
2023 2024 2023 2024 2023 2024 2023 2024 2023
Management team
0
0
0
0
0
0
0
0
2
2
2
4
4
6
Qualified staff
1
1
25
25
0
0
8
5
72
75
10
6
116
112
Administrative personnel
0
0
9
10
1
1
0
0
4
7
1
2
15
20
Total
1
1
34
35
1
1
8
5
78
84
13
12
135
138
Total number and breakdown of employees by contract type and average annual number of
permanent, temporary and part-time contracts by gender, age and employee category
ESRS do not include total number and breakdown of contracts by employee category and age, or average
contracts by age and employee category.
Total number and distribution of employment contract types by age, gender and employee category
Permanent contracts
Temporary contracts
2024
2023
2024
2023
By age
Under 30
155
159
17
23
30 to 50
1,594
1,601
1
9
Over 50
722
685
0
0
Total
2,471
2,445
18
32
By gender
Women
715
701
6
14
Men
1,756
1,744
12
18
Total
2,471
2,445
18
32
By employee
category
Management team
167
163
0
0
Qualified staff
2,124
2,078
18
27
Administrative
180
204
0
5
Total
2,471
2,445
18
32
Average number of permanent and temporary contracts by age, gender and employee category
2024
2023
Average
permanent
contracts
Average
temporary
contracts
Average
permanent
contracts
Average
temporary
contracts
By age
Under 30
147.30
16.15
140.13
20.3
30 to 50
1,637.67
1.03
1,631.80
9.2
Over 50
668.72
0.00
645.81
0.0
By gender
Women
714.06
5.99
686.67
13.71
Men
1,738.94
11.88
1,728.96
17.84
By employee
category
Management team
162.60
0.00
160.81
-
Qualified staff
2,097.24
17.77
2,042.07
26.51
Administrative personnel
193.26
0.00
212.57
5.21
In 2024 and 2023, the workforce did not include any part-time personnel.
Workplace accidents, in particular their frequency and severity, and occupational diseases, broken
down by gender:
ESRS do not require the breakdown by gender and the calculation formulas are different
Consolidated Management Report for 2024
225
2024
2023
Men
Women
Total
Men
Women
Total
Number of accidents
10
1
11
5
0
5
Fatal accidents
0
0
0
0
0
0
Days lost to accidents(1)
532
22
554
66
0
66
Injury frequency rate(2)
3.19
0.78
2.49
1.66
0.00
1.14
Accident severity rate(3)
0.17
0.02
0.13
0.02
0.00
0.02
(1) The calculation is based on 6,000 working days for a fatal accident and 4,500 days for total permanent disability.
(2) Frequency rate: number of work-related accidents resulting in lost time per million hours worked.
(3) Severity rate: number of working days lost to occupational accidents + incapacity scale, per thousand hours worked.
Notably, for yet another year there were still no cases of occupational diseases.
Implementation of disconnection policies:
ESRS request policies regarding employees that could include disconnection measures. Those standards do
not explicitly require right-to-disconnect measures but if companies have them or a related policy, they will be
included.
Redeia is aware that the digital transformation includes more flexible work organisation models, which can
lead to situations where the boundaries of working hours become blurred, thus creating situations where an
employee's work genuinely interferes with their personal life.
Article 88, governing the right to disconnect, of the Spanish Data Protection and Digital Rights Act (Organic
Law 3/2019 of 5 December 2019), requires companies to meet with workers' representatives and draw up an
internal policy for employees (including those in management positions) that defines how this right to
disconnect can be exercised and the actions taken to train employees and raise awareness about the
reasonable use of technology to prevent the risk of IT fatigue.
As a clear commitment to promoting the right to disconnect, in 2021 the Digital Disconnection Protocol came
into force, which explains how employees may exercise this right, along with the training and awareness-
raising actions to be carried out on the reasonable use of devices and other forms of technology. This protocol,
together with the flexible working hour arrangements made available to our employees, means that employees
can enjoy a healthy balance between their personal and professional lives.
Employees with disabilities:
ESRS require the percentage of employees with disabilities, whereas Law 11/2018 requires the number of
employees with disabilities. Reporting the information in one or the other way does not provide the reader with
additional insight. In addition, the total number of employees is always published where it can be calculated.
2024
2023
Persons with disabilities (total no.)
27
24
Average remuneration of directors and managers, including variable remuneration, per diem
allowances, severance pay, long-term retirement plans and any other amounts received, broken down
by gender
As regards the remuneration of the Board of Directors, there is no gender-based pay difference amongst the
members of the Board, as disclosed in note 25 to the consolidated financial statements, as long as they hold
the same position as directors of the company. Any possible differences are due solely to the fact that they
may hold other positions on the board, above and beyond their directorships, such as chairman of board
committees, lead independent director, or by virtue of the commercial contract that the roles of non-executive
chairman and chief executive officer have with the company.
Total remuneration accrued by senior management personnel in 2024 amounted to 3,794 thousand euros,
recognised under employee benefits expense in the consolidated statement of profit or loss. Note that there
226
Consolidated Management Report for 2024
were organisational changes and changes in the consolidation scope that affected the number of key
management personnel and the composition and members of that team in 2024. On a like-for-like basis, i.e.,
only analysing remuneration for the professionals who were part of the Group's key management personnel
for all of 2023 and 2024, the year-on-year increase in their remuneration narrows to 2.32%.
b. Information on social issues
The Company's commitments to sustainable development
Contributions to foundations and non-profit organisations.
In 2024, contributions to foundations and non-profit organisations totalled 2,125,000 euros (2023: 1,730,000
euros). This figure includes contributions made under institutional or academic collaboration agreements,
membership fees to national and international organisations, and donations for social purposes.
Association and sponsorship actions
The Group is an active member of various international organisations and associations, particularly within the
European Union, with a view to raising awareness of its stance on fundamental aspects of its activity, building
strong alliances and contributing to the achievement of common objectives.
The Group participates in international electricity-related organisations such as ENTSO-E (European Network
of Transmission System Operators for Electricity), RGI (Renewable Grid Initiative), IESOE (Electricity
Interconnection in South-Western Europe), Med-TSO (Mediterranean Transmission System Operators),
CIGRE (International Council on Large Electric Systems), SNMPE in Peru (National Mining, Energy and Oil
Company), Asociación de Transmisoras in Chile (Transmission Association), Fundación España-Perú,
ENERCLUB (Spanish Energy Club) and AEEE (Spanish Association for the Energy Economy).
Subcontracting and suppliers
Supervision and audit systems and their outcomes
The supplier classification and qualification process requires companies applying to become suppliers to
accept the Code of Conduct for Suppliers. Through the platform supporting this process, they confirm that
they do not carry any ESG risk that might pose an unacceptable risk to Redeia. Further screening is carried
out to ensure that they meet the minimum requirements and standards of quality for each supply. They are
also asked, inter alia, to provide proof of having a stable financial position and of having taken out a civil
liability insurance policy, along with references of previous projects and experience.
Depending on the type of supply, should compliance with further environmental and social criteria be required
(beyond those required for approval), these are duly conveyed by the technical areas as part of the technical
specifications as part of the contractual documentation.
The continuous monitoring process is there to ensure that the supplier is able to perform the contracts signed
with Redeia and continue to fulfil the relevant tender and supplier approval requirements. The main screening
actions are as follows: (1) business (monitoring of the financial solvency of all approved suppliers and
application of mitigating measures, continuous oversight of legal matters such as being up-to-date with
payment of the required taxes, social security contributions and public liability insurance, etc.); (2) technical;
(3) compliance (criminal risk, privacy and cybersecurity); (4) integrity and human rights; (5) sustainability (ESG
score); and (6) social responsibility (verification of proper adherence to the Code of Conduct for Suppliers
through social audits).
Where a risk or non-compliance with ESG requirements is identified, Redeia may perform audits, using the
findings to draw up action plans for minimising the identified risks.
Consolidated Management Report for 2024
227
Tax information
Redeia is committed to compliance with tax laws and the fulfilment of its tax obligations, seeks a cooperative
relationship with the taxation authorities and considers it important to contribute to economic and social
development by paying taxes in all the countries in which it operates.
In 2024 and for the fifth year running, the Group topped the tax responsibility transparency ranking of IBEX
35 companies, earning a `t*** de transparente' (T for Transparency) mark of tax transparency from Fundación
Haz. To attain this accolade, the voluntary transparency shown by IBEX 35 companies as regards their tax
obligations is analysed.
The Group's tax strategy has been approved by the Board of Directors and provides a consistent and reliable
approach to tax matters in line with the Group's strategy. It embodies the Group's vision and objectives in tax
matters and is based on three core values: transparency, good governance and responsibility.
The Board of Directors has also approved the Group's Tax Risk Control and Management Policy and its
inclusion in the Comprehensive Risk Management Policy. The tax risk control and management systems are
described in the Corporate Governance Report.
The Group's Tax Strategy and ERM policy can be found on the corporate website.
Both the Code of Conduct and Ethics and the Tax Strategy set out the Group's pledge not to create companies
in countries considered tax havens in order to evade tax. The Group has no presence and carries out no
activity in countries considered tax havens or non-cooperative jurisdictions under applicable laws and
regulations: First and tenth additional provision and second transitional provision of Law 36/2006, of 29
November 2006, on measures for the prevention of tax fraud (as amended by Law 11/2021, of 9 July 2021,
on measures to prevent and combat tax fraud, effective 11 July 2021); Order HFP/115/2023, of 9 February
2023, listing those countries and territories, as well as harmful tax regimes, considered to be non-cooperative
jurisdictions; the European Union list of non-cooperative jurisdictions and territories for tax purposes.
Set out below is information on country-by-country profit (loss), country-by-country income tax paid, and public
aid received, as disclosed in the consolidated financial statements. Figures do not include the Hispasat
subgroup classified within discontinued operations in accordance with IFRS 5 – "Non-current assets held for
sale and discontinued operations".
Country-by-country profit (loss)
Profit/(loss) before income tax from continuing operations encompasses consolidated profit (loss).
Country-by-country profit (loss) before income tax (million euros) (1)
2024
2023
Spain
620
819
Brazil
45
47
Luxembourg
16
16
Peru
9
10
Chile
-14
-7
Other(2)
-
-
TOTAL
676
885
(1) Country-by-country profit (loss) before income tax for 2023 was restated excluding the Hispasat subgroup for comparability with the consolidated
financial statements and with comparative information for the current reporting period. Subgroup Hispasat reported a loss before tax in 2024 of 95
million euros (2023: 25 million euros).
(2) Europe includes France and Denmark, with amounts under 1 million euros.
Income tax paid
With a view to following best practices in sustainability and voluntarily offering greater transparency in tax
matters for its various stakeholders, Redeia has been calculating and publishing its total tax contribution as
part of its sustainability report since 2014, showcasing the significant economic and social contribution made
by the taxes it pays.
228
Consolidated Management Report for 2024
The Group's total tax contribution to public authorities across all the countries in which it operates amounted
to 517 million euros in 2024, of which 194 million euros related to taxes paid by other entities and 323 million
euros to taxes collected on behalf of others.
Corporate income tax paid in each country in 2024 and 2023 is as follows: This table does not include income
taxes paid by companies consolidated using the equity method (mainly located in Brazil and Chile).
Income tax paid (million euros) (1)
2024
2023
Spain(2)
124
187
Peru
5
5
Other(3)
-
-
Total
129
192
(1) Country-by-country income tax paid for 2023 was restated excluding the Hispasat subgroup for comparability with the consolidated financial
statements and with comparative information for the current reporting period. Income tax paid by subgroup Hispasat in 2024 amounted to 1 million
euros (2023: 14 million euros).
(2) The figure for 2024 does not include the amount collected in 2024 of the 2022 income tax refunded on application of the minimum payment rule
when calculating instalment payments.
(3) Europe includes France and Luxembourg and America includes Chile and Brazil with amounts under 1 million euros.
Government grants received
In 2024, a total of 209 million euros was received in grants from official bodies, the bulk of which related to the
amount received by Red Eléctrica to fund the electricity interconnection between Spain and France through
the Bay of Biscay.
Government grants received (millions of euros)(1)
2024
2023
Spain
209
-
Total
209
-
(1) The amount of government grants received in 2023 was restated excluding the Hispasat subgroup for comparability with the consolidated financial
statements and with comparative information for the current reporting period. Government grants received by subgroup Hispasat amounted to 42
million euros in 2023.
c. Information on environmental matters
Waste generated by type (kg)
2024
2023
Hazardous waste (kg)
579,086
3,877,443
Non-hazardous waste (kg)
654,650
683,734
Recycled waste (%)
94.28
98.4
Direct and indirect energy consumption
2024
2,023
Electricity consumption (MWh)
19,546
20,835
Fuel consumption (MWh)
10,602
10,889
Consumption of energy from renewable sources as a percentage of total energy
consumption (%)
63
61
Fuel consumption is primarily from fleet vehicles, generators and heating. The share of renewable energy
consumption in total energy consumption (including both electricity and fuels) does not include the share of
renewable energy corresponding to national energy mixes (only that acquired contractually) or the share of
biofuel contained in automotive fuel.
Consolidated Management Report 2024
229
11.5.2 APPENDIX 2. Context index required under Law 11/2018
Disclosures required by Law 11/2018
Materiality
Location in the report
Reference to
relevant DR in
Explanation of
rationale
General disclosures
A brief description of the undertaking's
business model, including disclosures
relating to its business environment,
organisation and structure
Material
a. Strategy, business model
and value chain. SBM-1.
(ESRS 2) SBM-1
Markets where they operate
Material
a. Strategy, business model
and value chain. SBM-1.
(ESRS 2) SBM-1
The undertaking's objectives and
strategy
Material
a. Strategy, business model
and value chain. SBM-1.
(ESRS 2)
SBM-1
MDR-P
MDR-A
MDR T
Main trends and factors that may affect
their future development
Material
b. Views and interests of
stakeholders. SBM-2.
(ESRS 2)
SBM-2
SBM-3
IRO-1
IRO 2
Reporting framework relied upon
Material
a. General basis for
preparation. BP-1.
b. Disclosures in relation to
specific circumstances. BP-2.
ESRS 1
ESRS 2
Materiality principle
Material
b. Views and interests of
stakeholders. SBM-2.
1.2.4 Material impacts, risks
and opportunities. SBM-3.
(ESRS 2)
SBM-2
SBM-3
IRO-1
IRO-2
Environmental matters
Management approach: description and
results of policies related to
environmental matters
Material
a. Strategy, business model
and value chain. SBM-1.
(ESRS 2)
SBM-1
MDR-P
MDR-A
MDR T
Detailed general disclosures
Detailed information on the current and
expected effects of the activities on the
environment and health
Material
b. Material impacts, risks and
opportunities and their
interaction with strategy and
business model — Climate
change. ESRS 2 / SBM-3
a. Transition plan and
consideration of biodiversity
and ecosystems in strategy
and business model. E4-1
(ESRS 2)
SBM-3
IRO-1
E1-1
E2-1
E3-1
E4-1
E5-1
Consolidated Management Report 2024
230
Environmental assessment and
certification processes
Material
a. Actions and resources in
relation to climate change
policies. E1-3 / MDR-A.
b. Policies related to
biodiversity and ecosystems.
E4-2
a. Description of the processes
to identify and assess material
resource use and circular
economy-related impacts, risks
and opportunities ESRS 2 -
IRO 1
E4-2 AR (17 d)
E1-2
E2-2
E3-2
E4-2
E5-2
Resources allocated to preventing
environmental risks
Material
b. Policies related to climate
change mitigation and
adaptation. E1-2 MDR-P
(ESRS 2)
SBM-3
E1-9
E2-5
E3-5
E4-6
Application of the precautionary
principle
Material
b. Policies related to resource
use or circular economy. E5 - 1
+ MDR-P
(ESRS 2)
SBM-3
E1-9
E2-5
E3-5
E4-6
Amount of provisions and guarantees
for environmental claims
Material
c. Actions and resources
related to resource use and
circular economy. E5 - 2 +
MDR-A
(ESRS 2)
SBM-3
E1-9
E2-5
E3-5
E4-6
Pollution
Measures to prevent, reduce or repair
emissions that affect the environment
Material
a. Actions and resources in
relation to climate change
policies E1-3 / MDR-A
E2-2
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231
Includes noise and light pollution
Not material
Actions during the
maintenance phase aimed at
mitigating the noise generated
by certain electrical substations
(programmes for measuring
and adjusting the operating
parameters of certain power
equipment to reduce noise
levels and the design of
acoustic screens) and reducing
light pollution are also
noteworthy. To address the
latter issue, in recent years the
Company has worked on
implementing measures to
enable facilities to be shut
down at night, thereby limiting
light pollution as much as
possible, while also achieving
significant energy savings
Not applicable
Circular economy and waste
prevention and management
Waste generated
Material
ii. Resource outflows. E5 - 5 +
MDR – M
5. Appendix 1
E5-5 (37a)
E5-5 39
Measures for the prevention, recycling,
reuse and other recovery and disposal
of waste.
Material
Actions and resources related
to resource use and circular
economy. E5 - 2 + MDR-A.
ii. Resource outflows. E5 - 5 +
MDR – M
E5-2
E5-5
Actions to combat food waste.
Not material
Not applicable
Sustainable use of resources
Water consumption and supply in
accordance with local limits
Not material
Water is not a material topic for
Redeia. In own operations,
water supplied to all
workplaces—for both
processes and consumption—
is from authorised, public
supply networks. In addition, all
supply is from areas with low or
no water stress.
E3-2
E3-4
Consumption of raw materials and
measures to improve efficiency
Material
Actions and resources related
to resource use and circular
economy. E5 - 2 + MDR-A.
i. Resource inflows. E5 - 4 +
MDR – M
E5-2
E5-4
Consolidated Management Report 2024
232
Direct and indirect energy consumption
Material
i. Energy consumption and mix.
E1-5
b. Policies related to climate
change mitigation and
adaptation. E1-2 MDR-P
5. Appendix 1
E1-5 (37)
E1-5 (38)
Measures taken to improve energy
efficiency
Material
i. Energy consumption and mix.
E1-5
b. Policies related to climate
change mitigation and
adaptation. E1-2 MDR-P
E1-2
E1-5
Use of renewable energies
Material
i. Energy consumption and mix.
E1-5
E1-5 (37)
E1-5 (39)
Climate change
Greenhouse gas emissions generated
as a result of the undertaking's activity,
including through use of the goods and
services it produces
Material
ii. Gross Scopes 1, 2, 3 and
Total GHG emissions. E1-6.
E1-6
Measures taken to adapt for the
consequences of climate change
Material
a. Transition plan for climate
change mitigation. E1-1.
a. Actions and resources in
relation to climate change
policies. E1-3 / MDR-A
E1-1 (SBM-3)
E1-3
Medium- and long-term GHG emission-
cutting targets voluntarily adhered to
and the measures implemented to that
end
Material
a. Transition plan for climate
change mitigation. E1-1.
b. Targets related to climate
change mitigation and
adaptation. E1-4 / MDR-T
E1-1
E1-4
Biodiversity protection
Measures taken to preserve or restore
biodiversity
Material
a. Description of processes to
identify and assess material
biodiversity and ecosystem-
related impacts, risks and
opportunities. ESRS 2 IRO-1
c. Actions and resources
related to biodiversity and
ecosystems E4-3
b. Impact metrics related to
biodiversity and ecosystems
change.
E4-1
E4-3
E4-5
Consolidated Management Report 2024
233
Impacts caused by activities or
operations in protected areas
Material
a. Description of processes to
identify and assess material
biodiversity and ecosystem-
related impacts, risks and
opportunities. ESRS 2 IRO-1
c. Actions and resources
related to biodiversity and
ecosystems E4-3
b. Impact metrics related to
biodiversity and ecosystems
change.
E4-1 (SBM-3)
E4-1 (IRO-1)
E4-3
E4-5
Social and employee-related matters
Management approach: description and
results of the policies addressing these
matters and of the principal risks
related to matters linked to the group's
operations
Material
a. Strategy, business model
and value chain. SBM-1.
(ESRS 2)
SBM-1
MDR-P
MDR-A
MDR-T
Employment
Total number and breakdown of
employees by country, gender, age and
employee category
Material
a. Information on social and
employee-related matters
5. Appendix 1
S1-6 (50 a, b)
S1-9 (66 b)
** Total number
and breakdown of
employees by
employee
category
Indicator not
included in ESRS
Information reported
under the CSRD
does not match the
EMP indicators in
Law 11/2018 as it
includes different
breakdowns,
precluding
verification of the
same information.
Based on the
conclusions of the
analysis, this
indicator is
classified as
"partially covered in
ESRS" as under
CSRD
requirements, the
"Total number and
breakdown of
employees by
employee category"
indicator is not
included in this
group of indicators
required by the
CSRD.
Consolidated Management Report 2024
234
Total number and breakdown by
contract category and average annual
number of permanent, temporary and
part-time contracts by gender, age and
employee category
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information reported
under the CSRD
does not match the
EMP indicators in
Law 11/2018 as it
includes different
breakdowns,
precluding
verification of the
same information.
The CSRD does not
require disclosures
of information
regarding annual
averages and
breakdowns. It only
refers to averages in
the description of
the methodologies
in S1-6 (50 d ii),
where it mentions
the possibility of its
use as a
methodology for
calculating and
compiling data to
obtain the
information.
Number of dismissals by gender, age
and employee category
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
required a
breakdown of the
total number of
dismissals or
breakdowns by
gender, age and
employee category)
Average pay and trend broken down by
gender, age, employee category or
equivalent metric
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require a breakdown
of average pay of
employees or trend
broken down by
gender, age or
employee category.
Pay gap, remuneration for the same
work or work of equal value
Material
vii. Compensation metrics (pay
gap and total compensation).
S1-16 and MDR-M
S1-16
Consolidated Management Report 2024
235
Average remuneration of directors and
managers, including variable
remuneration, per diem allowances,
severance pay, long-term retirement
plans and any other amounts received,
broken down by gender
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the
breakdown of
average pay of
directors and
managers.
Implementation of disconnection
policies
Material
a. Policies related to own
workforce. S1-1 and MDR-P
S1-1
Number of employees with disabilities
Material
v. Persons with disabilities. S1-
12 and MDR-M
S1-12
Organisation of work
Organisation of working time
Material
d. Taking action on material
impacts on own workforce, and
approaches to mitigating
material risks and pursuing
material opportunities related
to own workforce, and
effectiveness of those actions.
S1-4 and MDR-A
S1 (SBM-3)
S1-1
S1-8
S1-11
S1-15
Number of hours of absenteeism
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require disclosure of
the number of hours
of absenteeism.
Measures designed to facilitate work-life
balance and sharing of responsibilities
Material
d. Taking action on material
impacts on own workforce, and
approaches to mitigating
material risks and pursuing
material opportunities related
to own workforce, and
effectiveness of those actions.
S1-4 and MDR-A.
b. Material impacts, risks and
opportunities and their
interaction with strategy and
business model. ESRS 2 SBM-
3
S1-4
S1-15
Health and safety
Health and safety conditions at work
Material
a. Policies related to own
workforce. S1-1 and MDR-P.
vi. Health and safety metrics.
S1-14 and MDR-M
S1-1
S1-14
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236
Work-related accidents, frequency,
severity and work-related ill health
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the
breakdown by
gender of
information on the
number of work-
related accidents
and the formulas for
calculating rates are
different to those
required under Law
11/2018. Also not
required is
disclosure of
information on the
number of cases of
work-related ill
health.
Management-employee relations
Organisation of social dialogue
including procedures on worker
communication, consultation and
negotiation
Material
b. Processes for engaging with
own workers and workers'
representatives about impacts.
S1-2
S1-2
S1-2 AR (24, 25)
S1-3
S1-2 AR (28, 29)
Percentage of employees covered by
collective bargaining agreements by
country
Material
ii. Collective bargaining
coverage and social dialogue.
S1-8 and MDR-M
S1-8
S1-8 AR
List of collective bargaining
agreements, particularly with respect to
occupational health and safety
Material
ii. Collective bargaining
coverage and social dialogue.
S1-8 and MDR-M
S1-8
S1-14 (88a)
Mechanisms and procedures that the
Company has in place to promote the
involvement of workers in its
management in terms of information,
consultation and participation.
Material
a. Policies related to own
workforce. S1-1 and MDR-P.
b. Processes for engaging with
own workers and workers'
representatives about impacts.
S1-2
c. Processes to remediate
negative impacts and channels
for own workers to raise
concerns. S1-3
S1-1
S1-2
S1-3
Training
Policies implemented in the area of
training
Material
a. Policies related to own
workforce. S1-1 and MDR-P.
S1-1
S1-1 AR (17 a, c,
f, h)
S1-13
Consolidated Management Report 2024
237
Total training hours by employee
category
Material
a. Information on social and
employee-related matters
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
match the training
indicators of Law
11/2018, as the
breakdowns are
different and do not
include breakdowns
by employee
category. In
addition, the
calculation
methodology is
different (average
hours vs. total
hours).
Universal accessibility
Universal accessibility for people with
disabilities.
Not material 5. Appendix 1
S1-1 AR (17 d)
S2-2 (23)
S4-2 (21)
S4-5 AR (44)
S4 (SBM-3 10 c)
Equality
Measures taken to foster equal
treatment of and opportunities for men
and women
Material
Material impacts, risks and
opportunities and their
interaction with strategy and
business model. ESRS 2 SBM-
3.
a. Targets related to managing
material negative impacts,
advancing positive impacts,
and managing material risks
and opportunities. S1-5 and
MDR-T
S1-2
S1-3
S1-4
S1-15
S1-16
Equality plans, measures taken to foster
employment, anti-sexual/gender
harassment protocols
Material
Material impacts, risks and
opportunities and their
interaction with strategy and
business model. ESRS 2 SBM-
3.
a. Policies related to own
workforce. S1-1 and MDR-P.
d. Taking action on material
impacts on own workforce, and
approaches to mitigating
material risks and pursuing
material opportunities related
to own workforce, and
effectiveness of those actions.
S1-4 and MDR-A
S1-1 (20, 24 a,b,c)
S1-1 AR (14, 17 b)
S1-17 (102, 103)
S1-17 AR (104
b,c)
Integration and universal accessibility
for people with disabilities.
Not material
S1-1 AR (17 d)
S2-2 (23)
S4-2 (21)
S4-5 AR (44)
S4 (SBM 3 10 c)
Consolidated Management Report 2024
238
Policies against all kinds of
discrimination and, as the case may be,
diversity management.
Material
d. Taking action on material
impacts on own workforce, and
approaches to mitigating
material risks and pursuing
material opportunities related
to own workforce, and
effectiveness of those actions.
S1-4 and MDR-A.
Policies related to own
workforce. S1-1 and MDR-P.
S1-1
S1-2
S1-3
S1-4
Respect for human rights
Management approach: description and
results of the policies addressing these
matters and of the principal risks
Material
2.1.4 Minimum social
safeguards.
a. Policies related to own
workforce. S1-1 and MDR-P
(ESRS 2)
SBM-1
MDR-P
MDR-A
MDR T
Implementation of due diligence
processes
Material
(ESRS 2) GOV-4
(ESRS 2) MDR-P
S1-1
S1-17
S2-1
S3-1
Implementation of due diligence
processes in relation to human rights
and prevention of risks of human rights
violations and, as applicable, measures
to mitigate, manage and redress any
such violations
Material
d. Taking action on material
impacts on own workforce, and
approaches to mitigating
material risks and pursuing
material opportunities related
to own workforce, and
effectiveness of those actions.
S1-4 and MDR-A.
a. Policies related to own
workforce. S1-1 and MDR-P
(ESRS 2) MDR-A
(ESRS 2) MDR-T
S1-2 / S1-3 / S1-4
S2-2 / S2-3 / S2-4
S3-2 / S3-3 / S3-4
S4-2 / S4-3 / S4-4
Reported human rights violations.
Material
viii. Incidents, complaints and
severe human rights impacts.
S1-17 and MDR-M
S1-17
S2-4 (36)
S3-4 (36)
S4-4 (35)
Promotion and compliance with
provisions in ILO fundamental
conventions covering the freedom of
association and right to collective
bargaining
Material
viii. Incidents, complaints and
severe human rights impacts.
S1-17 and MDR-M.
a. Policies related to own
workforce. S1-1 and MDR-P
S1-8
Consolidated Management Report 2024
239
Elimination of discrimination in
employment and occupation
Material
a. Policies related to own
workforce. S1-1 and MDR-P.
b. Material impacts, risks and
opportunities and their
interaction with strategy and
business model. ESRS 2 SBM-
3.
a. Policies related to own
workforce. S1-1 and MDR-P.
d. Taking action on material
impacts on own workforce, and
approaches to mitigating
material risks and pursuing
material opportunities related
to own workforce, and
effectiveness of those actions.
S1-4 and MDR-A
S1-1 (24)
S2-1 (17)
Elimination of child labour or forced
labour
Material
a. Policies related to value
chain workers S2-1, MDR-P.
a. Targets related to managing
material negative impacts,
advancing positive impacts,
and managing material risks
and opportunities. S2-5, MDR-
T
S1-1 (22)
S2-1 (18)
S3-1 (16)
S4-1 (16)
Effective eradication of child labour
Material
a. Policies related to value
chain workers S2-1, MDR-P.
a. Targets related to managing
material negative impacts,
advancing positive impacts,
and managing material risks
and opportunities. S2-5, MDR-
T
S1-1 (22)
S2-1 (18)
S3-1 (16)
S4-1 (16)
Anti-corruption and bribery
Management approach: description and
results of the policies addressing these
matters and of the principal risks related
to matters linked to the undertaking's
operations
Material
Prevention and detection of
corruption and bribery. G1-1,
G1-3.
a. Confirmed incidents of
corruption or bribery
(ESRS 2)
SBM-1
MDR-P
MDR-A
MDR-T
Information on the fight against
corruption and bribery
Measures taken to prevent corruption
and bribery
Material
Prevention and detection of
corruption and bribery. G1-1,
G1-3.
G1-1
G1-3
G1-4
Anti-money laundering measures.
Material
Prevention and detection of
corruption and bribery. G1-1,
G1-3.
G1-1
G1-3
G1-4
Consolidated Management Report 2024
240
Contributions to foundations and non-
profit organisations.
Material
V. Information on social issues
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require a list of
economic
contributions to
foundations and
non-profit
organisations.
Information on social issues
Management approach: description and
results of the policies addressing these
matters and of the principal risks
related to matters linked to the group's
operations
Material
a. Policies related to affected
communities. S3-1, MDR-P
(ESRS 2)
SBM-1
MDR-P
MDR-A
MDR-T
The Company's commitments to
sustainable development
Impact of the undertaking's activity on
employment and local development
Material
The impact of the Company's
activities on local employment
not considered material. The
impact of the Company's
activities on local development
is disclosed in:
b. Material impacts, risks and
opportunities and their
interaction with strategy and
business model. SBM-3
S3-1
S3-2
S3-3
S3-4
S3-5
Impact of the undertaking's activity on
local populations and the local area
Material
b. Material impacts, risks and
opportunities and their
interaction with strategy and
business model. SBM-3
S3-1
S3-2
S3-3
S3-4
S3 5
Relations with local community players
and types of dialogue
Material
b. Material impacts, risks and
opportunities and their
interaction with strategy and
business model. SBM-3
S3-1
S3-2
S3-3
S3-4
S3 5
Associations and sponsorship actions
V. Information on social issues
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the list of
memberships of
non-profit
associations and
sponsorship actions
of social or
environmental
Subcontracting and suppliers
Inclusion in the purchasing policy of
social, gender equality and
environmental matters
Material
c. Management of relationships
with suppliers. G1-2.
SBM-1 (42)
MDR-P (65 b)
S2-1 18
S2-4 AR (30)
S3-4 AR (27)
S4 4 AR (27)
Consolidated Management Report 2024
241
Contemplation of social and
environmental performance in supplier
and subcontractor engagement
Material
c. Management of relationships
with suppliers. G1-2.
SBM-1 (42)
MDR-P (65 b)
S2-1 18
S2-4 AR (30)
S3-4 AR (27)
S4 4 AR (27)
Supervision and audit systems and their
outcomes
Material
c. Management of relationships
with suppliers. G1-2.
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the
breakdown of the
number of audits
performed or other
schemes of
supervision
performed on
suppliers or the
findings.
Consumers
Measures to guarantee consumer
health and safety
Not material
S4-1
S4-2
S4-3
S4-4
Consumer claims, complaints and
grievance systems
Not material
S4-3
S4-4
Tax information
Country-by-country profits
Material
V. Information on social issues
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the
breakdown of
country-by-country
Income tax paid
Material
V. Information on social issues
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the
breakdown of
country-by-country
income tax paid.
Government grants received
Material
V. Information on social issues
5. Appendix 1
Indicator not
included in ESRS
Information to be
reported under the
CSRD does not
require the
breakdown of
country-by-country
government grants
Regulation (EU) 2020/852 - Taxonomy
Qualitative information
Accounting policy
Material
2.1.5 Key performance
indicators: Turnover, CapEx
and OpEx associated with
Taxonomy-aligned activities.
Regulation (EU)
2020/852
Regulation (EU)
2021/2178
Assessment of compliance with
Regulation (EU) 2020/852
Material
2.1 EU TAXONOMY
INFORMATION
Regulation (EU)
2020/852
Regulation (EU)
2021/2178
Consolidated Management Report 2024
242
Contextual Information
Material
2.1 EU TAXONOMY
INFORMATION
Regulation (EU)
2020/852
Regulation (EU)
2021/2178
Quantitative information
Taxonomy-eligibility and alignment of
turnover
Material
2.1 EU TAXONOMY
INFORMATION
Regulation (EU)
2020/852
Regulation (EU)
2021/2178
Regulation (EU)
2021/2139
Regulation (EU)
Taxonomy-eligibility and alignment of
CapEx
Material
2.1 EU TAXONOMY
INFORMATION
Regulation (EU)
2020/852
Regulation (EU)
2021/2178
Regulation (EU)
2021/2139
Regulation (EU)
Taxonomy-eligibility and alignment of
OpEx
Material
2.1 EU TAXONOMY
INFORMATION
Regulation (EU)
2020/852
Regulation (EU)
2021/2178
Regulation (EU)
2021/2139
Regulation (EU)
Consolidated Management Report 2024
243
12. Annual Corporate Governance Report
The annual corporate governance report is an integral part of the management report and is available at:
https://www.cnmv.es/portal/consultas/ee/informaciongobcorp.aspx?nif=A-78003662&lang=en
13. Annual Report on Director Remuneration
The annual report on director remuneration is an integral part of the management report and is available at:
https://www.cnmv.es/Portal/Consultas/EE/InformacionGobCorp.aspx?TipoInforme=6&nif=A-78003662
STATEMENT OF RESPONSIBILITY FOR THE CONTENT OF THE CONSOLIDATED ANNUAL FINANCIAL REPORT
FOR 2024
Regarding REDEIA, S.A.'s Consolidated Annual Financial Report for 2024, which contains the consolidated financial
statements and consolidated management report, in accordance with article 99.2 of Law 6/2023, of 17 March 2023, on
Securities Market and Investment Services, the members of the Board of Directors hereby state that:
To the best of their knowledge, the consolidated financial statements prepared in accordance with the applicable set of
accounting standards give a true and fair view of the assets, liabilities, financial position and financial performance of REDEIA
CORPORACIÓN, S.A. and the undertakings included in the consolidation taken as a whole, and that the consolidated
management report includes a fair review of the development and performance of the business and the position of REDEIA
CORPORACIÓN and the undertakings included in the consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face.
Statement for the authorisation for issue of the Consolidated Annual Financial Report for 2024 issued by the Board of Directors
of REDEIA CORPORACIÓN, S.A. on 26 February 2025.
Madrid, 26 February 2025.
_______________________
Beatriz Corredor Sierra
Chairwoman
_______________________
Roberto García Merino
Chief Executive Officer
________________________
Socorro Fernández Larrea
Director
_______________________
Antonio Gómez Ciria
Consejero
_______________________
Mercedes Real Rodrigálvarez
Director
_______________________
José Juan Ruiz Gómez
Consejero
_______________________
Ricardo García Herrera
Consejero
_______________________
Marcos Vaquer Caballería
Consejero
______________________
Elisenda Malaret García
Director
_______________________
José María Abad Hernández
Consejero
_______________________
Esther María Rituerto Martínez
Director
_______________________
Guadalupe de la Mata Muñoz
Director
Independent Limited Assurance Report on
the Consolidated Non-Financial Information Statement and
Sustainability Information for the year ended
December 31st, 2024
REDEIA CORPORACIÓN, S.A. AND SUBSIDIARIES
Domicilio Social: Calle de Raimundo Fernández Villaverde, 65. 28003 Madrid - Inscrita en el Registro Mercantil de Madrid, tomo 9.364 general, 8.130 de la sección 3a del Libro de Sociedades,
folio 68, hoja nº 87.690-1, inscripción 1a. C.I.F. B-78970506.
A member firm of Ernst & Young Global Limited.
Ernst & Young, S.L.
C/ Raimundo Fernández Villaverde, 65
28003 Madrid
Tel: 902 365 456
Fax: 915 727 238
ey.com
INDEPENDENT LIMITED ASSURANCE REPORT ON THE CONSOLIDATED NON-FINANCIAL
INFORMATION STATEMENT AND SUSTAINABILITY INFORMATION
(Translation of a report originally issued in Spanish. In the event of discrepancy,
the Spanish-language version prevails.)
To the shareholders of REDEIA CORPORACIÓN, S.A.:
Conclusion of limited assurance
In accordance with article 49 of the Commercial Code, we have performed a limited verification
engagement on the Consolidated Non-Financial Information Statement ("NFIS") for the year ended
December 31st, 2024, of REDEIA CORPORACIÓN, S.A. (the "Entity") and subsidiaries (the "Group"),
which is part of the Group's Consolidated Management Report.
The content of the NFIS includes information in addition to that required by prevailing company law in
respect of non-financial information, specifically the Sustainability Information prepared by the Group
for the year ended December 31st, 2024 (the "Sustainability Information") in accordance with
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022, as
regards corporate sustainability reporting (the "CSRD"). The Sustainability Information was also
subject to limited verification.
Based on the procedures applied and the evidence obtained, nothing has come to our attention that
causes us to believe that:
a)
The Group's NFIS for the year ended on December 31st, 2024, has not been prepared, in all
material respects, in accordance with the contents required by prevailing company law and
the criteria selected in European Sustainability Reporting Standards ("ESRS"), as well as
other criteria described as explained for each subject matter in Appendix 2 “Context index
required under Law 11/2018” of the NFIS.
b)
The Sustainability Information, taken as a whole, has not been prepared, in all material
respects, in accordance with the sustainability reporting framework applied by the Group and
identified in section “Changes in preparation or presentation of Sustainability Information”,
including:
That the description of the process for identifying the Sustainability Information to be
disclosed included in section 1.2 “Materiality assessment” is consistent with the
process implemented and that it enables the identification of the material information
to be disclosed in accordance with the requirements of ESRS.
Compliance with ESRS.
Compliance of the disclosure requirements included in section 2.1 “EU Taxonomy
Information” on the environment in the Sustainability Information with Article 8 of
Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June
2020, on the establishment of a framework to facilitate sustainable investment.
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Basis of conclusion
We have performed our limited verification engagement in accordance with generally accepted
professional standards applicable in Spain and specifically with the guidelines contained in the
Guidelines 47 (revised) and 56 issued by the Spanish Institute of Chartered Accountants on non-
financial information assurance engagements and considering the contents of the note issued by the
Spanish Accounting and Auditing Institute (ICAC) on December 18, 2024 (the "generally accepted
professional standards").
The procedures performed in a limited verification engagement are less in extent than for a
reasonable verification engagement. Consequently, the level of assurance obtained in a limited
verification engagement is lower than the assurance that would have been obtained had a reasonable
assurance engagement been performed.
Our responsibilities under those regulations are further described in the Practitioner's responsibilities
section of our report.
We have complied with the independence and other ethics requirements of the International Code of
Ethics for Professional Accountants (including international standards on independence) of the
International Ethics Standards Board for Accountants (IESBA), which is based on the fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality, and
professional behavior.
Our firm applies International Standard on Quality Management (ISQM) 1, which requires us to
design, implement, and operate a system of quality management including policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our
conclusion.
Responsibilities of the directors
The preparation of the NFIS included in the Group's Consolidated Management Report is the
responsibility of the directors of REDEIA CORPORACIÓN, S.A. The NFIS has been prepared in
accordance with the content required by prevailing company law and the criteria selected in ESRS, as
well as other criteria described as explained for each subject matter in Appendix 2 “Context index
required under Law 11/2018” of the NFIS.
This responsibility also includes the design, implementation, and maintenance of such internal control
as considered necessary to ensure that the NFIS is free of material misstatement, whether due to
fraud or error.
The directors of REDEIA CORPORACIÓN, S.A. are also responsible for defining, implementing,
adapting, and maintaining the management systems from which the necessary information for
preparing the NFIS is obtained.
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In relation to the Sustainability Information, the entity's directors are responsible for developing and
implementing a process for identifying the information to be included in the Sustainability
Information in accordance with the CSRD, the ESRS and Article 8 of Regulation (EU) 2020/852 of the
European Parliament and of the Council, of 18 June 2020, and for disclosing information about this
process in the Sustainability Information itself in section 1.2 “Materiality assessment”. This
responsibility includes:
Understanding the context in which the Group carries out its activities and business
relationships, as well as its stakeholders, in relation to the Group's impact on people and the
environment.
Identifying the actual and potential impacts (both negative and positive), as well as risks and
opportunities that could affect, or could reasonably be expected to affect, the Group's
financial position, financial performance, cash flows, access to financing, or cost of capital in
the short, medium or long term.
Assessing the materiality of the identified impacts, risks and opportunities.
Making assumptions and estimates that are reasonable under the circumstances.
The directors are also responsible for the preparation of the Sustainability Information, which
includes the information identified by the process, in accordance with the sustainability reporting
framework used, including compliance with the CSRD, the ESRS, and compliance of the disclosure
requirements included in section 2.1 “EU Taxonomy Information” of the section on the environment
in the Sustainability Information with Article 8 of Regulation (EU) 2020/852 of the European
Parliament and of the Council, of 18 June 2020, on the establishment of a framework to facilitate
sustainable investment.
This responsibility includes:
Designing, implementing and maintaining such internal control as the directors consider
relevant to enable the preparation the Sustainability Information that is free from material
misstatement, whether due to fraud or error.
Selecting and applying appropriate methods for the presentation of Sustainability Information
and the basis of assumptions and estimates that are reasonable, considering the
circumstances, about specific disclosures.
Inherent limitations in the preparation of the information
In accordance with ESRS, the entity's directors are required to prepare forward-looking information
on the basis of assumptions and hypothetical assumptions, which must be included in the
Sustainability Information, about potential future events and possible future actions, if any, that the
Group could take. Actual results may differ significantly from estimated results, as the reference is to
the future and future events frequently do not occur as expected.
In determining the disclosures in the Sustainability Information, the entity's directors interpret legal
and other terms that are not clearly defined and that may be interpreted differently by others,
including the legal conformity of such interpretations, and, accordingly, are subject to uncertainty.
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Practitioner’s responsibilities
Our objectives are to plan and perform the verification engagement to obtain limited assurance about
whether the NFIS and Sustainability Information are free from material misstatement, whether due to
fraud or error, and to issue a limited verification report that includes our conclusions. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this
information.
As part of a limited verification engagement, we exercise professional judgment and maintain
professional skepticism throughout the engagement. We also:
Design and perform procedures to assess whether the process for identifying the disclosures
to be included in the NFIS and Sustainability Information is consistent with the description of
the process followed by the Group and enables, where appropriate, the identification of the
material information to be disclosed as required in the ESRS.
Perform risk procedures, including obtaining an understanding of internal control relevant to
the engagement, to identify disclosures where material misstatements are more likely to
arise, whether due to fraud or error, but not for the purpose of providing a conclusion on the
effectiveness of the Group’s internal control.
Design and perform procedures responsive to disclosures in the NFIS and Sustainability
Information where material misstatements are likely to arise. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Summary from the work performed
A limited verification engagement involves performing procedures to obtain evidence as a basis for
our conclusions. The nature, timing and extent of procedures selected depend on professional
judgment, including the identification of disclosures where material misstatements are likely to arise,
whether due to fraud or error, in the NFIS and Sustainability Information.
Our work consisted of making inquiries of management and of the Group's various business units and
components that participated in the preparation of the NFIS and Sustainability Information, reviewing
the processes used for compiling and validating the information presented in the NFIS and
Sustainability Information, and applying certain analytical procedures and performing tests of details
on a sample basis as described below:
For verification of the NFIS:
Holding meetings with Group personnel to obtain an understanding of the business model, the
policies and management approaches applied, and the main risks related to these matters
and to gather the information needed to perform the independent assurance work.
Analyzing the scope, relevance and completeness of the content of the 2024 NFIS based on
the materiality assessment performed by the Group and described in section1.2 “Materiality
assessment” of the NFIS, considering the content required in prevailing company law.
Analyzing the processes used to compile and validate the data presented in the 2024 NFIS.
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Reviewing the disclosures relating to the risks, policies and management approaches applied
with respect to the material matters presented in the 2024 NFIS.
Checking, through sample testing, the information underlying the content of the 2024 NFIS
and whether it has been adequately compiled based on data provided by information sources.
For verification of the Sustainability Information:
Making inquiries of Group personnel:
-
To understand the business model, the policies and management approaches applied,
and the main risks related to these matters and to gather the information needed to
perform the independent assurance work.
-
To know the source of the information used by management (e.g., interaction with
stakeholders, business plans and documents on strategy) and review the Group's internal
documentation on its process.
Obtaining, through inquiries of Group personnel, insight into the entity's processes for
gathering, validation, and presenting information relevant for the preparation of its
Sustainability Information.
Assessing whether the evidence obtained in our procedures on the process implemented by
the Group for determining the disclosures to be included in the Sustainability Information is
consistent with the description of the process included in that information, as well as
assessing whether that process implemented by the Group enables identification of the
material information to be disclosed in accordance with the requirements of the ESRS.
Assessing whether all the information identified in the process implemented by the Group for
determining the disclosures to be included in the Sustainability Information is effectively
included.
Evaluating whether the structure and presentation of the Sustainability Information is
consistent with ESRS, and the rest of the sustainability reporting framework applied by the
Group.
Performing inquiries of relevant personnel and analytical procedures on the disclosures in the
Sustainability Information, considering those where material misstatements are likely to
arise, whether due to fraud or error.
Performing, as appropriate, substantive procedures through sampling of selected disclosures
in the Sustainability Information, considering those where material misstatements are likely
to arise, whether due to fraud or error.
Obtaining, as appropriate, reports issued by accredited independent third parties
accompanying the Consolidated Management Report in response to the requirements of
European regulations and, in relation to such information and in accordance with generally
accepted professional standards, verification, exclusively, of the accreditation of the
practitioner and that the scope of the report issued corresponds to that required by European
regulations.
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Obtaining, as appropriate, the documents containing the information incorporated by
reference, the reports issued by auditors or practitioners on such documents and, in
accordance with generally accepted professional standards, verification, exclusively, that in
the document to which the information incorporated by reference refers, the requirements
described in ESRS for the incorporation by reference of information in the Sustainability
Information are met.
Obtaining a representation letter from the directors and management regarding the NFIS and
Sustainability Information.
Other information
The persons in charge of the entity's governance are responsible for the other information. The other
information comprises the consolidated financial statements and the rest of the information included
in the Consolidated Management Report but does not include either the auditors' report on the
consolidated financial statements or the assurance reports issued by accredited independent third
parties required by European Union law on specific disclosures contained in the Sustainability
Information and attached to the Consolidated Management Report.
Our verification report does not cover the other information, and we do not express any form of
verification conclusion on it.
Our responsibility in connection with our engagement to verify the Sustainability Information is to
read the other information identified and consider whether it is materially inconsistent with the
Sustainability Information or the knowledge we have obtained during the verification engagement
that could indicate material misstatements in the Sustainability Information.
ERNST & YOUNG, S.L.
(Signature on the original in Spanish)
__________________________
David Ruiz-Roso Moyano
February 26th, 2025