04. Corporate Responsability in the S&V Group

Corporate Responsibility Guidelines

SyV is committed to a responsible management model designed to create long-term value for all its stakeholders and to contribute to progress in society and the economy through sustainable development.

Sacyr Vallehermoso views responsible management as an ineluctable commitment to its stakeholders: the Company must be respectful of society in all its operations and activities and always take account of the rights, needs and wishes of the different groups with which it interacts. This basic principle should shape all our business decisions, from strategic considerations to day-to-day management choices.

The Group’s corporate mission reflects Sacyr Vallehermoso’s commitment to the principles of corporate responsibility, evidencing, inter alia, the importance it places on customer service and the value it accords to the professional integrity of its employees.

Corporate Responsibility Master Plan

Sacyr Vallehermoso embarked on its first Corporate Responsibility Plan in late 2009, approving an action plan spanning 2010 and 2011. Once that plan was terminated, the Board of Directors approved the implementation of a second plan which would be used to shape the responsible management of the Group and of its constituent companies, in force during 2012 and 2013. This Plan specifies the actions carried out by the SyV Group in the field of Corporate Responsibility, and defines the corporate elements which set it apart in its policy:

MISSION

“To orient our business towards the wider community via a sustainable and profitable business management model that creates value for all stakeholders by applying innovation, technological development and excellence to the execution of all activities undertaken by our various businesses.”

VISION

“To maintain an integrated and diversified Group that achieves the status of a societal benchmark, moves forward to sustainable development and acts in the awareness of emerging social needs to build a better future, assuring socially responsible decision- making in all our activities and endeavouring to satisfy all our stakeholders.”

VALUES

• Innovation
• Excellence
• People-oriented
• Concern for the environment
• Team spirit
• Integrity
• Commitment
• Economy

These values are addressed in the Master Plan in more specific form:

Innovation:

“To take up creative challenges and solutions in an ongoing search for improved processes and products, so increasing the value the company provides to its clients and to the wider community.

Sacyr Vallehermoso orients its activities towards the continuing progress of the host communities where it operates. Our distinctive hallmark is our bid to build a sustainable business model and adapt flexibly to a fast-moving environment.”

Excellence:

“To strive for excellence in all the company’s businesses and actions, achieving the highest standards of quality.

Everything that the SyV Group does must exemplify our professionalism, through the experience, expertise and values of all our employees.

To find solutions that serve clients’ interests and fulfil their needs, to the highest standards of quality, by investing in innovation as part of an ongoing search for excellence oriented towards improved processes, products and services.”

People-oriented:

“To find solutions that serve clients’ interests and fulfil their needs, to the highest standards of quality, by investing in innovation as part of an ongoing search for excellence oriented towards improved processes, products and services.

Sacyr Vallehermoso’s key asset is the effort and dedication of everyone who works for the Group. We regard every employee as unique, and accordingly invest in enhancing their potential and career expectations and nurture their pride in belonging to the organisation.

The Group shall provide optimal health and safety conditions in the workplace. We require a high degree of safety in processes, installations and services, and place special attention on protection of employees, suppliers, customers and the local environment. This principle shall be applied throughout the organisation.

All actions executed by the SyV group and its employees shall fully respect the human rights and civil liberties set out in the Universal Declaration of Human Rights.”

Concern for the environment:

“Everything the Group does must be guided by the utmost concern and care for the environment. The Sacyr Vallehermoso Group considers itself an integral part of the communities it serves, and as such is committed to driving and promoting their economic, social and cultural development.”

Team spirit:

“To encourage teamwork and create multidisciplinary teams that foster career development.

To develop a global vision of all our goals, values and principles in accordance with Group guidelines and policy, so as to create a yardstick that brings together all of SyV’s companies and business units.

In our day-to-day work, to provide a model of effort and dedication, surmounting difficulties and coming together to face our key career challenges.

To improve the sharing of knowledge and expertise among our employees via continuing training, with the goal of supporting present and future career success.”

Integrity:

“The Group’s business and professional activities shall be carried out in strict compliance with legislation in force in each location in which it operates.

The Group’s actions shall be honest and beyond reproach. It shall avoid all types of corruption and respect the circumstances and particular needs of all those involved in its business and professional activities. The Group shall ensure that corporate practices reflect its values.

The Group shall disclose accurate, easilyverifiable and reliable company management information, both internally and externally. Clear internal and outward-facing communications that foster dialogue with and commitment to all our stakeholders.

The Group shall assume and fulfil its responsibilities, applying all its skills and resources to comply with the objectives at hand, and carrying out a sustainable business guided by the principles of economic, social and environmental responsibility.”

Commitment:

This is a reflection and materialisation of the “Sacyr Spirit”. The on-going efforts made to ensure that our Company is a story of success, in which each man and woman plays a vital role.

All efforts are focused on the same goal: the on-going desire to create and provide value for the group. Non-conformism in place of mere compliance. The sense of belonging and sharing the values and formulas which have been the key to our success during the first 25 years of our history.

Economy:

We live in a world of scant resources and we are currently going through a period of market restrictions. This means that every element used has to be productive. Investments have to be made quickly but also carefully. The most important thing has to be the real creation of value: value for human resources, value for our actions and businesses, value for the markets and value for society as a whole.

Responsibility, control and efficiency applied to the development of our business plans, will stand us in good stead in the future.

Corporate Responsibility Policy

The main elements of our policy are:

• Encouraging communication with stakeholders by creating dialogue platforms that enable us to become aware of their expectations and so make the right action plans to fulfil their requirements.

• Nurturing employees’ pride in belonging, and making the company a first-choice employer by improving key areas like integration, equality, health and safety, benefits, training, work-life balance and career development.

• Extending the Group’s ethical and social principles to the supply chain (suppliers/ subcontractors) by introducing a responsible procurement policy that lays down guidelines for engaging, assessing and monitoring our suppliers.

• Reinforcing good governance mechanisms to provide stakeholders with transparency and ethical performance in everything we do, assuring compliance with statutory requirements and avoiding involvement in corruption, bribery or human rights violations.

• Supporting the development of the host communities where the SyV Group operates by undertaking innovative projects and becoming involved in public-interest initiatives via the Group’s foundation.

• Putting in place the mechanisms to mitigate the environmental impact of our projects and activities, displaying care and respectful awareness of the environment in everything we do.

• Integrating our corporate responsibility principles with all our decision-making processes, and creating a map of indicators that supports assessment of the degree of achievement of our initiatives in this area.

Guidelines

• To improve dialogue with stakeholders.

• To help improve all matters relating to the Company’s Corporate Reputation.

• To promote the Group’s ethical values and principles at all levels of the organisation and establish guidelines for social action policies.

• To strengthen SyV’s contribution to the development of the society in which we operate, establishing a system for its measurement and monitoring.

• To continue strengthening our global environmental action plan, maximising the SyV Group’s contribution towards sustainability in all activities of the SyV Group.

• To strengthen R&D+i policies, as a basic component of our capacity and technological expertise.

• To maintain continuity in the adoption of international policies and standards in the field of CSR.

• To adopt a global internal assurance system as a guarantee for complying with the targets established in the field of CSR.

Summary of activities

The eight guidelines shows above are implemented in a set of 26 specific initiatives which the Group considers to be priority for the next two years:

Guideline 1: To improve dialogue with stakeholders

• Incorporate the SyV Group’s policies and achievements in CSR into its equity story and the printed documents disseminated by the company in the financial markets and among investors and analysts (both “buy side” and “sell side”).

• Incorporate the SyV Group’s policies and achievements in CSR into its equity story and the printed documents disseminated by the company among the national media and among the the media in the countries in which the group operates.

• Create a standardised CSR document, to be used together with the documentation to submitted in tenders and bidding processes.

• Create a global map of Group suppliers, with which to establish the minimum compliance requirements in terms of CSR.

• Establish a specific code of conduct for suppliers.

• Increase training hours by 2%.

• Obtain the premier certification awarded in the Spanish market for a minority shareholders’s office.

Guideline 2: To help improve all matters relating to the Company’s Corporate Reputation

• Set a 2% quota of people with disabilities in suitable areas, and elsewhere taking alternative measures.

• Publish an Integrated Report (Commercial Report + Annual Financial Statements + Corporate Governance Report + CSR Report) in 2013.

• Position the company as one of the 20 leading companies in the Spanish market in the field of CSR compliance and policies, according to the criteria of the Club de Excelencia en Sostenibilidad (Excellence in Sustainability Club).

Guideline 3: To promote the Group’s ethical values and principles at all levels of the organisation and establish guidelines for social action policies

• Promote staff participation in the SyV Group’s commitment to society, through setting up a joint social action campaign for the Company and its employees.

• Establish the Sacyr Vallehermoso Foundation as the only channel through which social action, sponsorship and patronage initiatives are developed.

• Establish two main lines of social action, for which the Group will be acknowledged and shall enjoy prestige: infancy and youth + promoting R&D&i.

• Establish a corporate social action programme with which our brand can be permanently linked.

• Establish a specific section on the corporate website for the Sacyr Vallehermoso Foundation.

Guideline 4: To strengthen SyV’s contribution to the development of the society in which we carry out our activities, establishing a system for its measurement and monitoring.

• Introduce a system to compile information about our net contribution to the wealth of the countries where we operate.

Guideline 5: To continue strengthening our global environmental action plan, maximising the SyV Group’s contribution to sustainability in all its activities.

• Define a climate change policy and environmental strategy.

• Definición de retos globales y objetivos en materia de sostenibilidad.

• Define global sustainability challenges and targets.

• Define and implement a Global Plan to achieve efficiency in resources

Guideline 6: To strengthen R&D+i policies, as a basic component of our capacity and technological expertise.

• Promote research programmes in university or scientific centres with which we have agreements and forge new links with researchers and teachers.

• Organise the third and fourth editions of the Sacyr’s “We Do the Impossible” Prizes

Guideline 7: Maintain continuity in the adoption of international policies and standards in the field of CSR.

• Inclusion of the SyV Group in the FTSE4GOOD sustainability index and preliminary work for inclusion in the DJSI.

• Gradual adoption of the Guiding Principles for Business Action of the United Nations Organisation.

• Adoption of the World Economic Forum’s PACI anti-corruption standard.

Guideline 8: To adopt a global internal assurance system as a guarantee for complying with the targets established in the field of CSR.

• Design and implementation of a global target, control, monitoring and measurement system for the SyV Group’s CSR activities, applicable to all business and staff areas and the different geographical areas in which we operate.

• Preparation of a central panel of indicators.