2014 04 Sustainability Report Gonvauto Iberia (eng)

SUSTAINABILITY

REPORT

2013

Iberia

SUSTAINABILITY REPORT 2013 Index

SUSTAINABILITY

REPORT Iberia

2013

Organisation

Letter from the President 1. Our Organisation

Sustainability

Performance

7

3. Performance

54

10

• 3.1 Economic growth and innovation

57

About us

14

Key figures of Gonvauto Iberia

58

Gonvauto Península Ibérica

18

Balance sheet

59

Our governance framework

26

Labour relations framework

60

Our business lines and products

28

Risk management

61

Our goals in terms of sustainability

63

Our product

67

2. Gonvauto and sustainability

34

Our corporate culture

38

Our corporate principles

40

Our Sustainability Master Plan

42

The mission and the vision

44

Stakeholders

45

• 3.2 Our clients and suppliers

71

Our clients

72

Suppliers

74

Confidentiality and privacy

79

People

4. People • 4.1 The significance of Health and Safety

Planet

Annex

80 5. Planet 83

• 5.1 Environment

125 127

Health and Safety: our priorities

84

Environmental management in Gonvauto Iberia

Our commitment to occupational risk prevention. “One Step Beyond”

88

Environmental impact of our products

128

Implementation and development of our Health and Safety system

90

Environmental sustainability index

130

A follow-up of the Health and Safety plans and indicators

Our environmental aspects

132

100

Climate change and emissions

136

Health and Safety indicators

102 • 5.2 Value creation

128

143

107

Our impact in our environment

144

Our work teams

108

Our commitment towards the local community

Employment-related practices

112

146

Liaison with the local administration

Employment policy

116

153

Association with organizations

Social benefits

121

156

Support of social action

157

Awards and recognition

161

• 4.2 Our commitment to people

Annex

163

SUSTAINABILITY REPORT 2013 Index

LETTER FROM THE PRESIDENT As we approach the 25th anniversary of the foundation of Gonvauto, we are pleased to present the company’s first Sustainability Report.

The 2013 Report covers all production plants of Gonvauto Iberia (Barcelona, Pamplona and Marín). However, we intend to extend its coverage within the next two years, in order to include the whole of the company worldwide.

The report shows the corporate principles that have served as guidelines to our company from the very beginning and that are part of our Code of Ethics and Conduct: commitment to our customers, encouragement of our professionals’ initiative, leadership and sustainability.

We believe that ongoing innovation and reinvestment are essential for a business to ensure sustained competitiveness. By doing so, we have succeeded in incorporating innovation as part of our DNA and management philosophy, in order to help us overcome the different, ever complex, circumstances of the markets in which we operate.

Our aim is to lead the steel processing market. From the beginning of humankind, steel has always been the driving force behind change, and consequently, behind social progression. We are fully aware of the challenge we are facing and

in order to ensure our success, we have powerful allies in other organizations that share our goal.

2013 has witnessed the development of many initiatives based on efficiency and innovation, amongst which we would like to highlight the implementation of a new aluminium range in our Barcelona manufacturing facilities. This has resulted in Gonvarri Steel Services’ incorporation to the aluminium automobile parts market for the first time in its history, and in the development of safer, lighter and therefore cleaner components.

The initiatives shown in this Report are a clear reflection of the values that guide us: honesty, humility, tenacity and work.

Such values arise from a responsible work approach in every area of operation, our professionals being, as ever, the central focus.

This is the context for the Leading the Change programme. Its main goal is to contribute towards compliance with the 2013-2015 strategic Plan, that aims at guiding our organisation’s culture (more than 5,000 people) towards a philosophy based on sustainability and state of the art technology. The project, with a central focus on the individual, intends to encourage the community formed by the organisation’s professionals by stimulating the pride of belonging.

Letter from the President

7

SUSTAINABILITY REPORT 2013 Letter from the President

To achieve this, we struggle to create an appropriate environment among our professionals and their teams, sharing our approach, experience and infrastructure, and providing them with the necessary channels to enable the information flow, because we are mutually enriched by listening to others, and by sharing information.

Ensuring our employees’ safety and health is of paramount importance to our business. In addition to the OHSAS 18001 Certification, all Gonvauto Iberia work centres have implemented an effective corporate safety plan, ‘One Step Beyond”, which has contributed significantly to improving safety levels.

In our company, we believe that continuous learning and training are at the core of our professionals’ career management. This is the reason why, in 2013, we launched the “Leading The Change University” project, the main goal of which is to promote, integrate and coordinate all training actions performed within the Group.

Along with the people, environment is also fundamental. We have designed a development strategy that incorporates environmental management to all of our activities and that is today part of our sustainable development. We do this because we know that sustainability of our business very much depends on our ability to provide positive results from a financial (performance), social (people) and environmental (planet) points of view.

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Letter from the President

We trust in the extraordinary future that lies ahead of us and that a global, integrating approach is the focus of our work.

Our guiding principles and values, and the initiatives that we have launched, will enable us to face the future with the solvency gained on our journey so far, and the ethical approach that has allowed us to earn a reputation as a reliable company.

This Report reflects the commitment of those who work and collaborate with us.

Therefore, I would like to reiterate my gratitude to all of them, because thanks to their effort and devotion, they contribute to reinforce our commitment to sustainable growth on a daily basis.

Jon Riberas Executive Chairman

Letter from the President

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SUSTAINABILITY REPORT 2013 Letter from the President

10

Letter from the President

1. OUR ORGANISATION ABOUT US GONVAUTO PENÍNSULA IBÉRICA OUR GOVERNANCE FRAMEWORK OUR BUSINESS LINES AND PRODUCTS

Letter from the President

11

SUSTAINABILITY REPORT 2013 Index

01

OUR ORGANISATION

“We understand Social Corporate Responsibility as a model of responsible management and a commitment to ethics, transparency, justice and collaboration with our stakeholders, independently of the field in which they operate.�

Extract from the Ethics and Conduct Code

Chapter 1

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SUSTAINABILITY REPORT 2013 1. Our organisation

ABOUT US Gestamp Corporation

Gonvarri Steel Industries

We are part of Gestamp Corporation, headquarters of Gonvarri Steel Industries and Gestamp Renewables, a leading European company in the steel, automobile parts and renewable energies sectors.

Gonvarri Steel Industries is formed by two different business lines:

The Corporation has succeeded in becoming a great global company, by implementing the same leadership approach, based on continuous improvement, which characterized its beginnings, back in 1958.

• Gestamp Renewable Industries: Its industrial activity is based on renewable energies, featuring 10 factories that manufacture wind generator spare parts.

We are a guarantee of financial solvency and high quality production process for execution of major projects based, among others, in steel service centres located all around the world.

The company currently operates in 25 countries in Europe, America and Asia, featuring more than 130 industrial plants and a total workforce of 35,000 employees.

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• Gonvarri Steel Services: Steel Service Centres, with 28 factories.

Gonvarri Steel Services

Gonvauto

Gonvarri Steel Services was founded in 1958 and its growth has continued by achieving worldwide expansion and diversification. The company plays a leading role in the steel processing market, placing particular emphasis on sustainable, affordable growth and continuous improvement of products and services, aiming at building stronger relationships both with our customers and our suppliers.

For 23 years, Gonvauto has been a preferred supplier for the most important brands in the automobile industry, whether directly or through the automobile sector stamper network. In this regards, our long term strategy is based on maintaining, and expanding, our relationship with major players in this industry.

At the service centres, steel undergoes a series of top level technological procedures that allow goods to accommodate the customer’s needs.

As an expert in the steel sector, Gonvarri Steel Services has established the following business units: the automotive sector, road safety, industry and solar structures.

The “automotive” business unit is developed within Gonvarri Steel Services through the “Gonvauto” brand.

We, at Gonvauto, believe that proximity plays a key role in our business management. Based on this idea, all of our production centres are located close to our main customers. Added to this are other facts, such as a strong flexibility, our employee’s top level qualification and our ability to provide the most complete service during the production of automotive components (from the purchase of the material to the final delivery to the customer). In consequence, we meet all of our customers’ requirements, by providing highly competitive delivery terms and a quick, efficient solution to their problems.

While the traditional business has been mainly focused on steel, we have followed the most innovative trends by adding aluminium to our portfolio.

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SUSTAINABILITY REPORT 2013 1. Our organisation

OUR ORGANISATION

CORPORACIĂ“N GESTAMP GESTAMP CORPORATION

Iberia

* Barcelona

** Navarra

* Gonvauto Barcelona is the trade name of the society with the business name Gonvauto S.A. In this report we refer to it as Gonvauto Barcelona. ** Gonvauto Galicia is the trade name of the society with the business name Gonvarri Galicia S.A. In this report we refer to it as Gonvauto Galicia.

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Chapter 1

GLOBAL COVERAGE

* Countries in which we are present in (as to December the 31st 2013) * Gonvarri Steel Services steel service centers

Chapter 1

17

SUSTAINABILITY REPORT 2013 1. Our organisation

GONVAUTO PENÍNSULA IBÉRICA Management Gonvauto Península Ibérica (hereinafter, Gonvauto Iberia) is part of Gonvarri Steel Services.

The Board of Directors, which does not include independent Directors, is generally represented by the Managers of said companies.

The directors of each company conform to a certain professional profile, their liaison with the company being contract-based and such effective liaison being restricted to ownership.

Gonvauto Iberia comprises the production centres of Gonvauto located in Barcelona, Gonvauto Galicia and Gonvauto Navarra.

Its corporate purpose is to commercialise car parts through the handling, processing and cutting of steel coils (including sale and purchase and storage of steel products).

The traditional business has been based on steel products. However, in order to adapt ourselves to the latest trends in the auto market, we have added aluminium to our product portfolio.

*(GONVARRI STEEL SERVICES is the Division within the Group Holding Gonvarri, that holds the activity of Steel Service Centers, its parent company being a legal entity GONVARRI FINANCE CORPORATION, SL Gonvarri Steel Services is structured into 8 divisions worldwide basis Geographic and Product to criteria being Gonvauto Division Iberia that caters mainly to the automotive sector.)

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Chapter 1

Organisational structure The organisational structure of Gonvauto Iberia is defined as follows: Estructure Jon Riberas Mera Josu Calvo Vicente Coz JoaquĂ­n Liarte Javier Izu JesĂşs Mayo

GSI President and CEO GSS CEO General Manager of Gonvauto Iberia Manager of Gonvauto Barcelona Manager of Gonvauto Galicia Manager of Gonvauto Navarra

Iberia

Chapter 1

19

SUSTAINABILITY REPORT 2013 1. Our organisation

OUR PRODUCTION CENTRES Barcelona

Gonvauto Barcelona Gonvauto Barcelona was founded in 1991, with the main purpose of supplying steel in different formats to our main customers, Seat and Volkswagen. Activities were first carried out at the Gonvarri Barcelona facilities located nearby, as the Gonvauto plant was under construction.

Activity at the Castellbisbal plant started in June 1992, the centre comprising three buildings and a total surface of 27,000 square meters.

The plant is located in: Polígono Industrial San Vicente, s/n 08755. Castellbisbal (Barcelona).

The project was launched with the desire to become the first outsourcing company to cut and supply steel formats in the automobile sector.

corporating more productive machines that significantly increase our cutting speed, enhancing our production and, consequently, our ability to meet our customers’ needs.

9

74 %

Go

Gonvarri Corporación Financiera, S.L

During the first year, and in collaboration with Seat and Volkswagen, the production lines required for meeting our customers’ demand for steel formats (rectangles, trapeziums and silhouettes) were installed.

The company has been modernised over the years, by adapting the cutting lines to the customer’s requirements and in20

Chapter 1

Shareholders of Barcelona

Shareh

*

26 %

Holding Gonvarri S.R.L.

Ownership Structure as of December the 31st 2013 *Gonvarri Productos Siderúrgicos S.A. owns the 0,001% of this company

With these productive resources, the plant was designed for a production capacity of around 480,000 mT/year.

During 2010, 216 solar photovoltaic panels were installed on the roof of the three Gonvauto buildings, which lead to the production of electric energy with installed power of 0.6 MW. 2012 marked a historic milestone in Gonvauto, with the introduction of aluminium in the production process. To that end, the Mixed Press 12/13 was installed, its purpose being to respond to the clients’ increasing demands for aluminium formats for automobiles.

Our main customers are Seat and Volkswagen, through their plants located in Zona Franca and Martorell, in addition to an extensive network of local stampers, including Gestamp.

With regards to the raw material that we use, about 85% of it gets to us by train, which is brought into the warehouse in order to perform the corresponding coil movements, while the remaining 15% is carried to our facilities by road. Our main suppliers are: Arcelor Mittal, Thyssen, Ilva and Corus for steel, and Novelis, Aleris and Hydro for aluminium coils.

Ever since its establishment, Gonvauto Barcelona has been delivering an efficient service to its customers, trying to meet all of their needs and seeking their permanent satisfaction, while, at the same time, ensuring that quality, environmental care and occupational hazard prevention are present in every stage of the process, from the time that the coils are received up to the delivery of the packages, the relevant responsibilities being accordingly defined to such purpose.

Barcelona

Chapter 1

21

SUSTAINABILITY REPORT 2013 1. Our organisation

Gonvauto Galicia The plant began its activity in 2004, its purpose being the creation of a service centre capable of supplying steel to our main customers in the area. It consists of two warehouses measuring 15,000 m2, located in: Puerto de Marín, Zona de Expansión 1ª Fase.

36900 - Marín. Pontevedra.

The activity carried out at the plant is the manufacturing of steel plate for the automotive industry by means of slitting, cut to length and blanking processes.

At the beginning, the facilities were equipped with two slitting lines, one cut to length line and a press line, for silhouette cutting or blanking. In 2004, for the first time in Spain, a robot was incorporated at the plant, in order to perform the automatic change of cutting tools at the slitting lines, thus improving work place ergonomics and increasing productivity.

In September 2006, in order to meet the demands of the market, the plant was expanded, by adding a second silhouette cutting, or blanking, line.

Due to its current availability and performance, the plant has a capacity of approximately 250,000 mT/year.

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From its inception, Gonvauto Galicia has provided an efficient service to its customers in the complex automobile market, meeting every need and offering a wide range of sizes and quality categories, and for such purpose it has been equipped with the latest automatic systems for production and stacking, in its permanent search for customer satisfaction.

Our main customers are PSA Peugeot 99 % Citroen, Gestamp Vigo and Gestamp Portugal.

Gonvarri Corporación Financiera, S.L

26 %

Regarding raw material, at least 33% Shareholders of enters the plant by ship through the Port of Marín. The remaining 77% is transported by railway by our steel suppliers, 1% the main one being Arcelor Mittal, mostly from its plant located in Avilés.

Holding Gonvarri S.R.L.

Gonvarri Productos Siderúrgicos S.A (Portugal)

60 %

Gonvarri Corporación Financiera, S.L

Shareholders of *

40 %

Gonvarri Productos Siderúrgicos S.A

Ownership Structure as of December the 31st 2013 * The business name of the company is Gonvarri Galicia, S.A., Since January 2014, it´s trade name is Gonvauto Galicia.

Chapter 1

23

SUSTAINABILITY REPORT 2013 1. Our organisation

Navarra

Gonvauto Navarra The plant began its journey by the end of 2000. The Navarra Project was developed from the activities carried out at Gonvauto Barcelona. The agreements with Seat and Volkswagen were transferred to Navarra, which allowed us to improve the service provided to Volkswagen and its Pamplona-based facilities.

The plant is located in: PolĂ­gono Industrial Meseta de Salinas (Noain).

With an area of 57,000 m2, of which approximately 29,500 m2 is constructed area, it consists of 4 warehouses that have been ed together.

The facilities have 336 photovoltaic panels placed on the roof, with installed power of 0.5 MWh. The main technical procedures carried out at the plant are silhouette cutting, longitudinal cutting and transversal cutting.

The company managers are responsible for determining which operational lines will be followed, in accordance with the Group’s organizational strategy, as well as the decision-making and productivity guidelines to be established.

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Also, they exercise control of the activities performed at the plant.

Particularly relevant in Gonvauto Navarra are their initiatives in terms of sustainability and occupational hazard prevention, which have made them worthy winners of many awards and recognition on the part of the local administrations, such as the Healthy Company Blue Label and the InnovaRSE.

99 %

74 %

Gonvarri Corporaci贸n

Gonvarri Corporaci贸n Financiera, S.L

Shareholders of Navarra

Shareholders o

26 %

Holding Gonvarri S.R.L.

Ownership Structure as of December the 31st 2013

Navarra

Chapter 1

25

SUSTAINABILITY REPORT 2013 1. Our organisation

OUR GOVERNANCE FRAMEWORK Ethics and Conduct Code We believe that today’s company is expected to, not only comply with the law, but also to serve as ethical reference in every decision that is made, which is also expected from all of its members.

Performance of our activities is governed by the principles and values conveyed by our Code of Ethics, which are applicable to our employees, commercial standards, suppliers, purchases and the society in general.

The Group defined its first Ethics Code in 2008, which in 2013 was updated in order to adapt to the current environment, the new legal requirements and the internationally recognized codes and principles, and to the progress and innovation in the fields of data dissemination and communication. The new Code was approved by the Board of Directors on 13 January 2014, effective as of 20 January 2014.

The international principles on which our Ethics and Conduct Code is based are contained in the ILO (International Labour Organisation) Declaration on Fundamental Principles and Rights at Work, of 1998, the Río Declaration on Environment and sustainable Development of 1992, the Johannesburg World Summit on Sustainable Development of 2002 and the 10 26

Chapter 1

principles of the United Nations Global Compact, of 2000.

The Ethics and Conduct Code is applicable to all of our offices and work centres and is a key pillar that guides our actions.

The Code contains the guidelines and channels that are available to employees for denouncing whatsoever behaviour that takes place, entailing an infringement of legal regulations or the Company’s principles of conduct.

In order to reach all employees in the countries where we operate, three channels for communication have been established: email, phone and written document, in the shape of the complaint form.

Harassment prevention

Our fight against corruption

Gonvarri Steel Services is a global company that operates in many countries.

Therefore, the interpretation and implementation of certain aspects of the Code may ultimately depend on the local customs and culture, which might lead to different interpretations.

Anti-corruption mechanisms have been defined for the entire Group at corporate level, and they are based on the principle of honesty as corporate value.

In order to clarify some aspects relating to the Ethics and Conduct Code, and the channels available for denouncing incidents, a “Guide for Prevention of Harassment and action protocol” has been developed in 2013, in order to describe the measures available for prevention and report when encountering a harassment scenario, establishing certain mandatory rules which are required to ensure honest and responsible behaviour in each country in which we operate.

The guide may be tailored to the local requirements of the countries in which the Group operates. We can see an example of such adaptation in Spain, where the “Code for Prevention of Harassment and Protocol in the event of complaint of harassment”, was published in November 2012, implementing Organic Act 3/2007 of 22 March on Effective Equality between Men and Women.

In addition to the information contained in the Ethics and Conduct Code, a guide known as “How to behave when being offered incentives, gifts or invitations” was published in 2013, in order to reinforce our message “Zero tolerance towards corruption”, mainly focused on purchases, acceptance of gifts and presents and conflicts of interest.

The Ethics and Conduct Code, and the guides designed for its implementation, have been integrated within training and internal audit procedures, in order to ensure compliance with the terms covered by it.

On an annual basis, the Ethics Committee prepares a report which summarises the incidents that may have occurred during the year, according to the type and risk associated to it, which is later forwarded to the Company’s Management The guides will be delivered at the beginning of 2014, jointly with the Code of Ethics and Conduct.

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SUSTAINABILITY REPORT 2013 1. Our organisation

BUSINESS LINES AND PRODUCTS Gonvauto Iberia has considerable expertise as supplier of outsourcing services for the leading automotive manufacturers.

We offer a wide variety of cutting procedures: steel and aluminium longitudinal, transversal, silhouette and trapeze cutting, that are later used for manufacturing our customers’ cars.

Similarly as we, in the past, adapted our lines for processing highly resistant steel, in the last year we incorporated aluminium to our activity. Chapter 3 describes this process in depth.

The latest trends in the automotive market aim at reducing the weight of the car, reducing fuel consumption and emissions to the atmosphere, maintaining high quality and safety standards.

Currently, there are two possible ways of fulfilling this demand: • To reduce the thickness of steel parts, using high-resistance materials.

• To manufacture formats and parts in steel, as it is a lighter material.

Products We manufacture coils, strips and flat plate formats using steel and aluminium coils that serve as raw goods for our customers’ stamping processes Gonvauto Iberia manufactures the following products:

Flat blanks: • Rectangles (1) • Trapeziums (2) • Silhouettes (3)

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(1)

(2)

(3)

(4)

Straps (4)

Manufacturing process Coils: where the process begins

The whole manufacturing process begins with the steel and aluminium coils delivered by our suppliers.

Once we have received the coils, they undergo the quality controls established in order to ensure that they conform to the characteristics that the process, Gonvauto and our clients require.

Steel coils Steel is made from melting iron and other materials in high temperature furnaces.

Once steel has been obtained, it undergoes solidification, and later laminating, which is a process that results in long steel sheets that are wound into coils.

Once they cool down, and because of the environmental conditions, the coils oxidize, acquiring a darker tone, which is why they are known as “black coils”.

In order to provide them with the quality standards demanded from the automotive industry, coils are subject to a pickling procedure that returns them to their original features, thus becoming the so-called “white coils”.

Finally, in most cases, a zinc coating is applied, endowing the steel with a higher degree of corrosion resistance and an improved surface finishing.

Gonvauto Iberia only works with suppliers that offer maximum guarantees of quality and that ensure compliance with our customers’ demanding requirements.

Chapter 1

29

SUSTAINABILITY REPORT 2013 1. Our organisation

Aluminium coils Pure aluminium is obtained after melting and reducing alumina (aluminium oxide) through electrolysis. Later, it is combined with small amounts of other materials (mainly magnesium, copper and silicon) that result in an alloy that features improved mechanic resistance.

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Subsequently to this process, the alloy solidifies and is therefore laminated, and later submitted to a thermal process that improves its limit of elasticity and its resistance to the material tension.

Finally, the sheets are wound into coils that will be cut later in our facilities.

Cutting types

Once at Gonvauto Iberia, the coils undergo different types of cutting that are tailored to our clients’ needs.

• Slitting:: It is in these lines where coils of certain width are cut in order to obtain narrower coils

(straps). The width of these rolls or coils is determined by the position of the blades that perform the cutting, which is very uniform at all times and in all its length. Likewise, this ensures a width that has lower tolerance than steel-making process (smoothing).

Coil

Cut

Strap

• Cut to length: In these transversal cutting lines, the original coils are transformed into rectangular, flat formats that are stacked in packages. To achieve this, the coils are flattened, cut to size as required and stacked in packages that can be easily handled and carried.

Coil

Cut

Blank

• Trapeze cutting: These are the lines where the flat formats stacked in packages are obtained.

They are different from the transversal cutting because of the different cutting method: in this case, rolling and rotating shears are used as they can modify the cutting angle. Using these shears, different shapes (rectangle, square, trapeze, rhombus or triangle) and formats (curved sides, apostilled, etc.) can be obtained.

Coil

Cut

Silhouette

• Blanking: These cutting lines arose from the need to create irregular shapes that are specific to

each car model. These specific shapes are obtained by means of moulds (that are specific and, as such, supplied by our customers), which are later assembled in our presses.

Blank

Cutting die

Silhouette

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SUSTAINABILITY REPORT 2013 1. Our organisation

Best practice SPG, the Road to Excellence What is SPG?

Why SPG?

Gonvarri Production System (SPG) is a comprehensive system for continuous improvement based on Lean Manufacturing and the Kaizen philosophy.

This system helps us reach our goals, improve our competitiveness and ensure that the improvement of the production system is both continuous and limitless.

Created in 2008, SPG provides a structured approach based on continuous improvement that allows for achievement of the goals that have been laid down and to arrange our company in such a way that it creates value for our customers, employees and share holders.

SPG seeks to remove operational inefficiency (faults, overproduction, useless actions, unnecessary procedures, etc.) through a series of technical improvements that lead to excellence by:

SPG provides tools and techniques that have been specifically designed to contribute to achieving employees’ progress, as well as the Group’s success. Also, we have based our own philosophy and working culture on this system.

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• Improving safety levels.

• Reinforcing quality.

• Achieving productivity growth, with due observance of costs and deadlines.

• Developing communication and cooperation.

• Ensuring everyone’s involvement, both at the plant and at the offices.

How does SPG operate?

SPG starts at the plant, where implementation of its basic principles acquires more visibility. Its functioning is focused on innovation, improvement and maintenance of standards. It will later be extended to the other departments.

Every member of Gonvauto Iberia participates, and supports, in the implementation of each tool provided by SPG, encouraging and accelerating the consolidation of the system as a step towards achieving Excellence.

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SUSTAINABILITY REPORT 2013 Letter from the President

34

Letter from the President

2. GONVAUTO AND SUSTAINABILITY OUR CORPORATE CULTURE OUR CORPORATE PRINCIPLES OUR SUSTAINABILITY MASTER PLAN THE MISSION AND THE VISION STAKEHOLDERS

Letter from the President

35

SUSTAINABILITY REPORT 2013 Index

02

GONVAUTO AND SUSTAINABILITY

“The Company consider that their reputation and public image are their principle assets due to the enormous importance of their relationship with clients, providers, employees, shareholders, public administrations and society�.

Extract from the Ethics and Conduct Code

Chapter 2

37

SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

OUR CORPORATE CULTURE Our strategic positioning sets the course that will allow us to achieve our goal, which is to become a sustainable company in each country in which we operate, through our contribution to the Triple Bottom Line: performance (economic), people (talent and people) and planet (society and environment).

During 2013, we have carried out a thorough review of our plans, programmes, procedures and manuals that are concerned with the different sustainability vectors, in order to adapt their content to the new market reality, the demands of our

stakeholders and the new dimensions of a company which is becoming increasingly globalized.

We are directing our efforts to ensure that the whole company shares the same corporate culture and that it is conveniently adapted to its environment, in accordance to its local requirements and regulations.

This is carried out within the framework provided by the guidelines, principles and values that have been governing our actions from the very beginning, and the international principles and guidelines that are commonly accepted.

Planet Environmental

performance

Performance Financial

performance

Planet

People Social

performance

“We must be efficient and profitable in the three aspects. It is the only way to guarantee our sustainability, our future.�

Jon Riberas. Executive President

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Chapter 2

Honesty

Humility

Tenacity

Work

Our corporate values We are guided by our values: • Honesty Honestidad • Humildad • Tesón • Trabajo Humility

Tenacity

Work

Our quality guarantees Proximity to our customers, along with our quality, training and investigation policies, allow us to assist them and to develop products and services with a greater added value.

They have been transmitted to us by the company’s founder ever since our activity began, in order to guide the conduct of all our employees.

Our sustainability We believe that nature conservation and respect for the environment are essential to ensure sustainable economic development.

Our vision

Organising sustainability

Gonvarri Steel Services shares the vision of the Corporation: to lead the markets by applying continuous improvement and implementing technological innovation in every process that we are involved.

The Management of Corporate Social Responsibility channels all actions that are concerned with sustainability. It is part of the Corporate Communication, Marketing and Sustainability Department, which directly depends from the President.

Our ambition is to meet the needs of our clients on a global scale, by taking into account their activity, our employees’ safety and respect for the environment.

We are known for:

Our industrial strength We are a company with a worldwide presence and strong industrial capacity. We make significant investments that keep us at the forefront of our industry.

A person in charge of CSR is designated in each plant, in order to coordinate the local initiatives, in collaboration with the corporate team.

The different actions and initiatives are communicated through the Head of Communication and CSR management, and compliance with the Master Plan in terms of sustainability is annually evaluated.

Chapter 2

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

Our corporate principles Our values and the Ethics and Conduct Code are the pillars that govern the Company’s Corporate Social Responsibility, from which our corporate principles stem, as set forth below:

1

Clients

People

Commitment with our clients

We encourage our professionals

Our clients are at the centre of our business. We are dedicated to designing the solutions that they require in collaboration with them and adapting our capabilities to their needs based on terms of quality and variety of product and service. As a team we seek out new opportunities that will consolidate their success because we consider that the success of our clients results in success, for us also.

We encourage the advancement of our professionals. Honesty, humility, tenacity and work have characterized our project since its commencement. These values allow us to establish trust with all those with whom we work with.

In our efforts to find solutions to the challenges our clients confront us with we have directed our model of internationalization towards an approximation of our resources to their operative requirements.

This has led to us having operations in more than twenty-five countries in which we have insisted on the creation of local networks that ensure that our relationship with the communities in which we are integrated is of mutual enrichment.

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Chapter 22 CapĂ­tulo

We are convinced that business in the 21st century is based on the advancement of the use of initiative by its professionals.

For this reason we promote the ideas of our collaborators and their capacity to carry them out. We also promote dialogue between our team and the members of all the implicated communities by sharing objectives, values and beliefs.

3

4

Leadership

Sustainability

Leading the change

Economic, social and environmental

We lead the change. We are living in a moment of profound change in the social and economic contexts that demands a re-thinking of processes and a new focus on the chain of values of our industry.

Economic, social and environmental. We know that the sustainability of our business depends on our capacity to offer positive economic, social and environmental results.

Innovation has formed a part of our DNA since our earliest beginnings and characterises our management philosophy. This has helped us to confront the different and always complex circumstances of the markets in which we operate.

We have designed a development strategy that integrates environmental management into all our activities. We consider environmental management as a basic component of the up and coming industrial advances of the near future. Responsible progress will be the only possible permissible progress.

This management philosophy, united with a strong commitment to the use of new information and communication technologies when working with our groups of interest makes us active participants in the Third Industrial Revolution.

We believe that constant re-investment and innovation are the key to maintaining competitively in any business.

For this reason we dedicate our resources to the continuous improvement of our services, our range of solutions and to our manner of supplying them, making our suppliers participants in our initiatives and principles.

Chapter 22 CapĂ­tulo

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

Our Sustainability Master Plan In response to the expectations of our stakeholders, the core aspects of the Sustainability Master Plan have been developed on a corporate level and are currently at the communication stage. With the Plan, we are moving forward together at our plants and offices, through the setting of goals.

The guidelines defined here aim at establishing a global framework for action in every company in each country where we operate.

Guideline 1: To promote dialogue with our stakeholders as well as the communication channels.

Guideline 2: Reinforce through communication and training all aspects related with the Ethics and Conduct Code, as well as the complaint channel.

Guideline 3: Encourage pride in belonging and make this company attractive for potential employees, in a discrimination free environment, where talent and personal development is promoted.

Guideline 4: Manage the Health and Safety of our employees as a main and strategic goal, defined in the Health and Safety policy. Develop a preventive culture which maintains a zero tolerance policy when it comes to risk taking and inadequate behaviours.

Guideline 5: Define and implement in the purchasing process and supplier’s standardization related criteria with the fulfilment of human rights. This has the purpose of aligning our chain supply with our values, principles and Ethics and Conduct Code.

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Guideline 6: Develop our processes, collaborating jointly with our clients, working under production standards with the maximum quality and efficiency.

Guideline 7: Continue advancing in the continuous improvement philosophy though out all our steel service centres, by certifying in the ISO 14001 Standard and the establishment of annual goals that contribute to the reduction of the environmental impact of our processes and products.

Guideline 8: Contribute to the reduction of CO2 emissions, both in the production activities through the realization of energy efficiency studies and corrective measures, as in the promotion of the renewable energies by designing lighter components that reduces emissions.

Guideline 9: Reinforce the contribution to the development of society in the countries in which we operate.

Guideline 10: Advance and increase the external communication in sustainability issues, in order to fulfil the information demand of our stakeholders through our webpage and Sustainability Report

Chapter 2

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

THE MISSION AND THE VISION OF GONVAUTO IBERIA Our mission and vision have been defined with the same belief in the future transmitted to us through the corporate mission and vision, adapting them to our activities and services, which are very much focused on the automotive industry.

The Mission of Gonvauto Iberia is to perform the cutting of metal sheets for stamping and assembling interior and exterior elements and components, and to arrange their storage and management, in order to meet the demands of the automotive industry, having undertaken to accompany our customer throughout the production process.

Also, the Mission of Gonvauto Iberia within the Group is to promote the corporate value and its sustainability,

44

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thanks to our high productivity rates, flexibility and our efforts to achieve continuing improvement, thus increasing productivity, efficiency and our customers’ satisfaction, as well as ensuring our employees’ safety, their professional development and respect for the environment.

The Vision of Gonvauto Iberia is to become a reference for excellence in its relationship with the automotive industry, able to meet our customers’ needs at all times and to walk them through their growth and development. The innovating processes and technologies available at Gonvauto Iberia set us apart from the competition and help us maintain our leading position within the market, this one being a common strategy within the Group.

STAKEHOLDERS Maintaining a two-way communication with our stakeholders is of paramount importance to Gonvauto Iberia, as it allows us to respond more rapidly, more efficiently, to those trends and needs that are deemed to be as high priority in our environment.

Identifying and selecting our stakeholders has been an internal process that took place after performing a thoughtful analysis of the companies in the sector, which involved the participation of the corporate area and the three production centres of Gonvauto Iberia.

The results of the analysis performed have led us to identify the groups and organisations that, as stakeholders, may have an influence on Gonvauto, or that may be significantly influenced by it.

Employees

Clients

Said groups have been classified in six different categories: • • • • •

Customers Employees Shareholders Suppliers Local communities and administrations • Media and social media channels Maintaining the communication channels with the stakeholders is a continuing task, performed through different mechanisms and communication channels. Some of them are common to all groups, such as the web page, our APP for mobile devices and, particularly, social networks, that enable a direct, fluid dialogue.

Additionally, specific channels have been established and adapted to each group.

Suppliers

Gonvauto Iberia Stakeholders

Shareholders

Media and social media channels

Local communities and public administrations

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

Our relationship with our stakeholders Clients

Employees

At Gonvauto Iberia, we maintain a close relationship with our customers that enables us to provide tailor-made services based on what the clients expect from us.

A satisfaction and employment climate survey is periodically conducted in order to gather the opinion of those who better know Gonvauto: our employees.

Therefore, we pay frequent visits to their facilities and arrange meetings that take place periodically.

On a daily basis, employees receive information regarding the company and they are provided with several channels by means of which they can express their views. The communication channels available are two: our Corporate Intranet “Leading The Change” and the information boards placed at the plants.

Some of our main clients also use the so-called B2B Platforms, as a tool for communicating with their suppliers. The incidence and complaint service is processed through said tool.

On an annual basis, we conduct a satisfaction survey among our customers, in order to find out the degree of their satisfaction with the service provided.

Using the information resulting from both procedures, we create our annual plans and programmes for improvement.

Periodically, interdepartmental meetings are held with Management that are crucial to creating synergies, solving difficulties and obtaining information that is relevant to the employees’ daily aspects of their working life.

Finally, the Workers’ Committee and the Safety and Health Committee collect all relevant aspects concerned with compliance of Collective Bargainings and the Safety and Health Plans.

All of the foregoing initiatives allow us to have information regarding the strengths and weaknesses of our relationship with our employees, allowing us to establish our improvement goals.

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Shareholders Gonvauto Iberia, through its General Manager, provides the CEO of Gonvarri Steel Services with periodical information. On a quarterly basis, the company’s results are included on the agenda of the Board of Directors.

Suppliers Evaluation surveys of our suppliers are annually conducted, and meetings for “delivery planning and complaint management” are periodically held. We also visit their facilities in order to devise, in coordination with them, actions designed to meet the demands of Gonvauto Iberia on sustainability matters.

One further communication channel is the Supplier Portal, an online tool that allows suppliers to participate in delivery-related negotiations.

Local communities and administrations Liaison with the local administration is usually arranged from the Management, where the local administration’s demands and interests are monitored. Gonvauto Iberia is involved in projects designed for companies and promoted by the public administrations, such as, for example, the InnovaRSE Plan of the Navarra Government.

Gonvauto Iberia determines what sort of sponsorship actions is best suited to the environment.

Also, the Gonvauto centres are members of associations and industrial clusters, in which they participate by attending meetings, congresses and receiving training. They also collaborate, for example, with the University of Barcelona, Fundación Empresa Universidad Gallega and the Public University of Navarra, such collaboration being regulated by means of practical training activities agreements.

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

Media and social media channels

Materiality

On a daily basis, all international and national news that may be relevant to the sector, including those involving Gonvauto Iberia, are collected and analysed.

In order to allow that this report fulfils the expectations of its groups of interests, in a manner that is both efficient and transparent, Gonvauto has conducted a materiality study in order to identify and analyse the aspects that are more relevant to said groups.

Additionally, nine social channels and a web site provide the possibility to discover Gonvauto Iberia and the activities we carry out: www

www

ww

www

www

48

• Youtube: Videos on our vision, procedures, products and facilities • Scribd: Press releases and communications • Flickr: Gonvauto Iberia’s day-today shown through the best pictures • Slideshare: Presentations that provide all details relevant to Gonvauto Iberia • RSS: All updates • • Issuu: All publications • • Web: The web site of Gonvarri Stewww el Industries • Linkedin: The profile of people at Gonvauto Iberia • Facebook: the latest news • • Twitter: All information relevant to the company supplied in real time.

Chapter 2

The results obtained are shown at the materiality matrix, which is obtained by crossing the following variables: • The analysis of each group of interests’ requirements and concerns that relate to society, environment and corporate ethics. Through enquiries and communication with the different groups of interests, priorities and goals on sustainability are set out and action plans are designed.

• The value placed on each aspect has been determined according to its maturity and relevance. We understand maturity as the significance held by each matter within the steel-making and automotive industries, whereas relevance, to us, is the attention paid to each aspect on the part of the relevant group.

Materiality matrix J

100

i

A

D G

90

T M

W N

80

K

P

S

70

Necessary

E

O

QU

F L

60 General

C

B H

R V

Necessary

A Brand image

M Risk prevention

B

Investment

C

Relationship with Public Administrations / Lobbying

N Communication: road security and sustainable mobility.

O Labor practices (diversity, equity and

D

Identification and Dialogue with Stake holders

E

Human capital development

F

Quality and environmental management Energy efficiency

50

G

40

H Renewable Energy

(production or consumption of renewable energy)

10

20

30

General

Emergent 10

20

no discrimination policies)

P

Health and Safety

Q Investment and Commitment to local communities R

Suppliers management

S

Strategy vs. Climate change

T

Corporate Governance

U Biodiversity protection programs V Emissions report

i

Recycling and waste management

J K

Conduct Code, ethical behaviour, corruption and brivery prevention Management and clients relations

L

Products

W Environmental performance Emergent No emergent elements have been detected

Urgent No urgent elements have been detected

Urgent 30

40

50

60

70

80

90

100

Relevance

This report covers those matters regarded not only as relevant but a priority issue, as well as the actions and measures set

out by Gonvauto Iberia for the purpose of providing a response to said matters, as set forth below:

Material aspect Brand image Identification and Dialogue with Stake holders Energy efficiency Human capital development Gesti贸n ambiental y gesti贸n de la Calidad Investment

Chapter 1. Our Organisation; 3.1. Economic growth and innovation.

2. Gonvauto and sustainability.

Renewable energy Relationship with Public Administrations / Lobbying Conduct Code, ethical behaviour, corruption and brivery prevention

5.1. Environment.

4.2. Our commitment to people.

5.1. Environment.

1. Our Organisation; 3.1. Economic growth and innovation.

5.1. Environment.

1. Our Organisation; 4.2. Our commitment to people.

1. Our Organisation; 2. Gonvauto and sustainability; 4.2. Our commitment to people.

Recycling and waste management

5.1. Environment.

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

Best practice Leading the Change: Team innovation ¿What is Leading the Change?

Leading the Change is a very ambitious corporate intranet Project developed at the Corporation that, through communication, sets people at the core of the company, making their work easier and encouraging their professional career.

Leading the Change is the product of team work, as all employees have been able to contribute to its development and promotion through the submission of suggestions and content, thus making Gonvauto day-to-day easier and better.

This project was born at the Management area, owing to the need to support the ongoing business changes (diversification, increase/internalization of the staff members and large investments) with a change of corporate culture that promotes pride of belonging.

The objectives are:

Leading the Change began to take shape in 2010 and in 2011 the Project started with a pilot phase during which a team formed by 100 employees from different levels and departments made intensive use of the tool, which led to obtaining almost three hundred suggestions for improvement.

The intranet was officially launched in June 2012, and the experience obtained at its early stages was so positive that we continued to encourage feedback, this time among all users.

• To manage the Company’s growth, both on a national and international level • To encourage synergies among people, countries, divisions and departments.

• To promote proper management of talent and training • To manage Labour Safety and Health and to integrate all initiatives and projects carried out up to date at Human Resources / Labour Safety and Health and Marketing and Communication.

• To stimulate the corporate culture change that is required to allow us to work towards the goals set out in the 2013–2015 Strategic Plan.

• To encourage values such as Innovation, Solidarity, Leadership and team work.

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The Leading the Change experience Leading the Change has a structure and operation that combines the best aspects of professional social networks (Facebook, LinkedIn y Twitter), allowing the creation of a tool for daily use and inviting users to create their profile and “be in touch� with the other users in all divisions.

In order to ensure accessibility, Leading the Change is available for use in all computers with an Internet connection or, thanks to the Mobile App, for use in all mobile devices and tablets using the Android o IOS-Apple operating systems.

Leading the Change has two levels of visibility: one for any person interested in the company and the other one for exclusive use of Leading the Change registered users.

Antes

DespuĂŠs

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SUSTAINABILITY REPORT 2013 2. Gonvauto and sustainability

The public information provided by our Mobile APP includes: • Info: This option allows easy access to the company’s web pages, and to the telephones and addresses of the different locations, as well as the company’s social channels (including presentations, pictures, latest news, etc.).

• Video: All videos showing the products, processes, facilities of Gonvauto Iberia can be viewed here.

• Maps: the maps that enable access to our offices, plants and projects from the telephone navigator.

Exclusive access to Leading the Change users This section is more comprehensive than the foregoing and includes many tools for communication and opinion such as: • Users directory: Using the directory allows users to locate colleagues from the centre or other centres, to find out what their position is and to contact them over the phone, through a conference or virtual text message.

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• Groups: This tool promotes the creation of virtual work or leisure groups in which employees participate, encouraging team work and exchange of knowledge, thus reinforcing the sense of belonging.

• News, press, blogs and corporate communication: These sections provide information regarding relevant news within the sector where Gonvauto and the other companies using Leading the Change operate, as well as press releases and Gonvauto’s internal information.

All of the foregoing sections encourage employees’ participation by allowing them to create content, add comments or click on LIKE to show that certain content is interesting to them.

Available in Google Play

App Store

Chapter 2

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SUSTAINABILITY REPORT 2013 Letter from the President

54

Letter from the President

3. PERFORMANCE 3.1 ECONOMIC GROWTH AND INNOVATION

KEY FIGURES OF GONVAUTO IBERIA

BALANCE SHEET

LABOUR RELATIONS FRAMEWORK

RISK MANAGEMENT

OUR GOALS IN TERMS OF SUSTAINABILITY

OUR PRODUCT

3.2 OUR CLIENTS AND SUPPLIERS

OUR CLIENTS

SUPPLIERS

CONFIDENTIALITY AND PRIVACY

Letter from the President

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SUSTAINABILITY REPORT 2013 Letter from the President

56

Letter from the President

Chapter 1

03

ECONOMIC GROWTH AND INNOVATION We lead the change. We are living in a moment of profound change in the social and economic contexts that demands a re-thinking of processes and a new focus on the chain of values of our industry.

Innovation has formed a part of our DNA since our earliest beginnings and characterises our management philosophy. This has helped us to confront the different and always complex circumstances of the markets in which we operate.

This management philosophy, united with a strong commitment to the use of new information and communication technologies when working with our groups of interest makes us active participants in the Third Industrial Revolution.

Leadership Corporate principles

Chapter 3.1

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SUSTAINABILITY REPORT 2013

3.Performance 3.1 Economic growth and innovation

KEY FIGURES IN GONVAUTO IBERIA Finantial

Clients

• • • •

• • •

Sales: €409,370,917 EBITDA: €17,556,820 Ratio: 4.29% Debt: € 1.4 M

Society • •

Health & Safety

• • • •

•

248 employees 99.2% undetermined employees 88% men and 12%women 24.2 training hours per employee

• •

100%of the plants certified with the OHSAS 18001 standard.

7 prevention representative 901 H&S training hours

Environment

Suppliers

•

Our main suppliers in 2013 were: • Arcelor Mittal • Thyssen Krupp • TATA Steel • ILVA

•

Chapter 3.1

•

People

•

58

100% of our suppliers are standardized 6 local initiatives

Volkswagen Group.

PSA Peugeot Citroen.

Gestamp: Gestamp Navarra, Gestamp Solblank, Estampaciones Vizcaya, Gestamp Aragón, Gestamp Vigo y Gestamp Cerveira Stamping companies: Faurecia, Sabadell, SNOP, ACS, INERGY, etc.

100% of the plants certified with the ISO 14001 standard 3,000 tons of CO2 equivalent emissions 1,472 MWh of energy produced

by PV installations

BALANCE SHEET In the framework of the automotive industry’s current circumstances, after several years during which sales figures have been declining, public programmes and aids for the purchase of cars are leading to a slight recovery.

“The automotive industry is a driving force behind the Spanish industrial development, due to its ability to stimulate other industries and its effects on distribution and services”* The automotive parts industry is particularly relevant, due to its competitive, flexible nature, and its significant presence in multinational companies that are geographically located near production plants of automotive companies, thus providing a fast, suitable service to fulfil their demands.

In such context, we would like to highlight the strength of Gonvauto Iberia, which has managed to remain stable in respect of 2012. In 2013, our production levels are quite similar to those from the previous year.

Growth forecasts will largely depend on how the sector evolves, mainly in connection with our customers, Volkswagen and Seat. Particularly relevant is the new aluminium line in Barcelona, which has required a significant investment and is expected to be fully productive by 2014.

sales

On 31 December 2013 the year closed with an EBITDA ratio on sales of 4.29%, which means that we are still far from pre-recession figures. The results, however, are slightly better than those from the previous year, which has been possible owing to hard work and many cost-saving initiatives and efficiency improvement that have been implemented in our three production centres, trying, at all times, to maintain stable levels of employment.

€409M

The company is required to produce annual audit reports on its consolidated accounts, due to its assets and turnover.

No reservations appear in the reports submitted by the three companies within Gonvauto Iberia.

The company complies with its remaining accounting duties, by filing before the Trade Registry, in due time and manner, and after each accounting year, the legalisation of its official accounting books and its annual accounts, following the approval from the Shareholders Meeting.

Also, the company is up to date with its payments to Social Security Treasury and tax-related duties.

*Source: Ministry of Industry, Energy and Tourism, May 2013.

Chapter 3.1

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SUSTAINABILITY REPORT 2013

3.Performance 3.1 Economic growth and innovation

LABOUR RELATIONS FRAMEWORK Sectoral agreements The facilities at Gonvauto Iberia comply with the provisions made by the corresponding Sectoral Agreements.

All employees at the production centres of Gonvauto Barcelona, Galicia and Navarra are included in said agreements.

Articles of Association Each facility at Gonvauto Iberia has its own Articles of Association, as set forth below: • Gonvauto Barcelona. Last partial update of the Articles of Association recorded in July 2013.

• Gonvauto Navarra. Last partial update of the Articles of Association recorded in April 2013.

• Gonvarri Galicia. Last partial update of the Articles of Association.

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Implementation and application of the Ethics and Conduct Code During the first quarter of 2014, the new Ethics and Conduct Code was formally presented and delivered to all employees at Gonvauto Iberia, to which effect the corresponding information workshops were held.

During the training, particular emphasis was placed on the availability of the complaint channels and on ensuring, on the part of the Ethics Committee, that no reprisals whatsoever would be taken against the staff member filing the complaint.

The Code is available online at the Intranet, at our mobile application and in printed format at the information points located at the three production centres, so that all employees have the possibility to check it at all times.

RISK MANAGEMENT Continuing improvement and investment Risks related to the manufacturing process are tempered through the performance of an analysis as well as the annual request for investments the purpose of which is to improve the facilities, and through continuing improvement (SPG). If due to any given reasons (legal changes, incidents, etc.), a relevant, unforeseen, and therefore non-budgeted, investment arises, it will be subject to the pertinent analysis and approval, which will be performed independently.

The method established for making investment requests is common to all facilities.

Before the end of the financial year, each facility’s Manager identifies and determines the investment requirements at his/her respective production plants, which will ultimately be assessed based on numerous factors, such as the

incidents occurred, new clients demands, production improvements, reduction of environmental impact, improvements in terms of employees’ safety and health, payback, etc.

The required investments are reported to the technical director, who performs a global assessment and, later, submits them to the person in charge in order to establish their priority. It should be noted that if the investment is requested in order to prevent potential risks in terms of safety and health or environment care, it acquires a priority status.

According to its priority level, investments may be made directly or may require additional information or studies so that their feasibility and profitability are properly analysed. The final list of investments is approved by the CEO.

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SUSTAINABILITY REPORT 2013

3.Performance 3.1 Economic growth and innovation

Financial Risks

Other risks

Financial risks are identified and assessed at the Corporate Treasury Department, in conformity with the procedure approved by the Board of Directors.

• Employee’s Health and Safety Risk: we at Gonvauto are fully aware of the importance of this issue; therefore, all facilities have their own Safety and Health Policy and have obtained the OHSAS 18001 certification.

The most significant risks, according to Gonvauto Iberia, are the following: • Foreign Exchange risk: this is a low level risk, as Gonvauto Iberia does not operate internationally.

• Price risk: At Gonvauto Iberia, we use commodities such as steel, which is partly exposed to price variation risks.

In order to mitigate the risks involved, measures have been taken that aim at stabilizing sales, controlling stock and planning the purchase periods.

• Credit risk: this is not a significant risk due to its financial position, past experience and type of customers.

• Business risk: this type of risk results from a drop in sales at the automotive sector as a consequence of the current global recession scenario.

• Environmental risk: Gonvauto has developed and implemented an environmental management system, under the ISO 14001 standard, which consists of controlling and monitoring its impact and ensuring that regulations are being complied with. It also includes several initiatives the purpose of which is to achieve energy efficiency.

Certifications In order to ensure that all of our products and services comply with our customers’ requests, and in addition to taking great care with regards to our employees’ labour conditions and minimising our environmental impact, our integrated management systems include issues such as quality, environment and labour health and safety, having been awarded the following certifications: • • •

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Chapter 3.1

ISO 9001-ISO/TS 16.949:2009 Standard UNE EN ISO 14.001:2004 Standard OHSAS 18.001:2.007 Standard

OUR GOALS IN TERMS OF SUSTAINABILITY The Group has defined a sustainability Master Plan that provides 10 guidelines that seek to establish a global action framework common to all companies where it operates, so that each company can set out its own goals based on its specific requirements and needs.

In this framework, Gonvauto Iberia has defined its performance objectives for the 2012 to 2015 period.

We will now proceed to summarise the most relevant actions carried out by the three companies.

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SUSTAINABILITY REPORT 2013

3.Performance 3.1 Economic growth and innovation

Line 1

Our commitment

Progress

Dialogue with our stakeholders

Stakeholders analysis Materiality study of Gonvauto Iberia

100%. This goal is explained on chapter 2.

Line 2

Our commitment

Progress

Ethics Code

Approval of the new Ethics and Conduct Code on January 2014

In process

Gonvauto Iberia

Perform its promotion, implementation and acceptance in all the Gonvauto Iberia plants before June 2014

Line 3

Our commitment

Employees and personal development

Implement the Performance and potential 100% of stage 1 achieved (Plant appraisal plan (PPA) in stage two: directors and managers of depart2012-2013: Management ments).

2014-15: Office staff.

Gonvauto Iberia 2013

2014

Gonvauto Iberia

2012 - 2015

Employees and personal developmentl

Gonvauto Iberia

2012 - 2015

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Chapter 3.1

Promotion of the new corporate communication and participation tool; Leading the Change among all the managers and office staff.

Progress

100%. Of the office staff of Gonvauto Iberia has received the Leading the Change training.

Line 4

Our commitment

Health and Safety

Increase to 700 annual hours of H&S In process training and reach 100% of the workforce trained in H&S.

Gon. Barcelona 2014

Health and Safety Gon. Barcelona 2013-15

Health and Safety

Progress

Reduction of the Accident rates (Frequen- Objective not achieved in 2013. cy of accidents, serious injury rate) The objective is reformulated: 2014: The same results than in 2012 achieved 2015: Reduction of 2014 rates by 10% Zero accidents in 2013 100% achieved

Gonvauto Galicia

Maintenance of accident rates indicators (Frequency of accidents, serious injury rate)

Line 5

Our commitment

Progress

Suppliers evaluation

Implement human rights’ aspects in our Local supplier selection processes.

In process

Line 6

Our commitment

Progress

Products

Analyze and implementation of measures Gonvauto Navarra: Stage 1, 100% that promote and enhance productivity achieved and efficiency. SPG Gonvauto Barcelona: 3 lines analyzed in 2013, 6 lines planed in 2014.

Gonvauto Galicia: Stage 1, 100% achieved

2013-15

Gonvauto Iberia 2013 - 2015

Gonvauto Iberia 2013-15

Products Gon. Barcelona 2012-15

Increase the production in the aluminum line 2013 goal: cut 2,500mt 2014 goal: cut 5,500mt

2013 goal: 100% achieved

Chapter 3.1

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SUSTAINABILITY REPORT 2013

3.Performance 3.1 Economic growth and innovation

Line 7

Our commitment

Progress

Environment

10% reduction in the amount of waste generated by gloves and anti-cut protection cuffs.

100% achieved. The implementation of a cleaning and recovering system has allowed a 13% reduction.

Gonvauto Galicia 2012-13

Environment

Establish corrective measures in order to avoid floods in the heavy rainning season Gonvauto Navarra and avoid resulting damages.

100% achieved. The necessary construction works where performed in order to avoid potential flood risk.

Line 8

Progress

2012-13

Our commitment

Emissions

Perform an energy efficiency diagnosis and design an action plan based on its Gonvauto Navarra results.

2013. End of the diagnosis 2013-2014. Actions planning and implementation.

Change of some engines, illumination systems, air- conditioning.

Line 10

Our commitment

Progress

Communication and diffusion

Adherence of the Group to the Global Compact in March 2014

100% achieved on the first quarter of 2014.

2012-13

Gonvauto Iberia 2014

Communication and diffusion Gonvauto Navarra 2012-14

Development of the First Gonvauto Iberia sustainability report in February 2014.

To participate in the InnovaRSE Method 100% achieved in 2012 and in with the Navarra government and achieve 2013. the objective that it establishes.

In progress for 2014 2012: Diagnosis 2013: Action plan 2014 Sustainability report (InnovaRSE Method)

Line 9,This line related to social development doesn’t have quantitative objectives. Our different initiatives are summarized in the chapter 5.2.

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OUR PRODUCT Four different types of products are manufactured at our Barcelona, Galicia and Navarra facilities: rectangles, trapezium, silhouettes and straps, the destination of which is the automotive industry.

The automotive industry demands high standards with regards to the quality and the logistics of its products and services.

Therefore, we comply with the technical and safety specifications demanded from our products, in order to consolidate our relationship, trying to exceed our customers’ expectations to the extent possible.

The three facilities have a Quality Policy and a Management System that have been developed and certified under the ISO/TS 16949 standard.

The ISO/TS 16949 standard provides the requirements that are specific to the ISO 9001 standard for mass production and original spare parts in the automotive industry. Our management systems having obtained this certification is compulsory to all suppliers, as the goal is to achieve continuing improvement, with an emphasis on preventing defects and waste in the delivery chain.

This standard encourages investigation and the development of new parts that will contribute to improving vehicle safety and its environment.

Likewise, we ensure quality by performing the corresponding analysis on our processes and continuing improvement.

We collaborate with the leading car manufacturers and we offer our teams, our experience and our know-how, as well as our facilities and procedures, in order to adapt to the new products as well as the market demands.

We set very high standards in terms of product control. Therefore, we conduct very strict quality controls from the reception of the raw material to the final product, in order to ensure that it fulfils every quality and safety requirement expected from it.

Also, our parts are all recyclable, which contributes to reducing consumption of natural resources and energy saving, as it turns waste into raw material.

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SUSTAINABILITY REPORT 2013

3.Performance 3.1 Economic growth and innovation

Best practice Aluminium: an avant-garde material Aluminium combines a series of properties that make it extremely useful in the field of material engineering, due to its high resistance to corrosion and low density.

Its mechanical resistance undergoes significant improvement when alloying with other metals, which makes its use suitable to the automotive industry.

It is a good electricity and heat conductor and is easily machinable. Also, it entails low recycling costs and has a long productive life, whereas its weight is two thirds lower than that of steel.

These properties position this material at the forefront of the latest technology in the automobile industry, as it contributes to reducing fuel consumption and enhances car safety, which is the reason why Gonvauto Barcelona has decided to add this material to its product portfolio.

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Chapter 3.1

To us, introducing this material was a huge challenge as its malleability is higher than that of steel, therefore requiring additional safety measures, such as lubrication of blades, strapping with plastic straps or constant use of a tablex at the settlement area in order to prevent it from deteriorating.

In 2013 we have successfully cut 2,500 mT of aluminium and we foresee that growth of this material will revolve by 200% by 2015.

Line of aluminium. Gonvauto Barcelona Chapter 3.1

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SUSTAINABILITY REPORT 2013 Index

Chapter 2

03

OUR CLIENTS AND SUPPLIERS “Our clients are at the centre of our business. We are dedicated to designing the solutions that they require in collaboration with them and adapting our capabilities to their needs based on terms of quality and variety of product and service. As a team we seek out new opportunities that will consolidate their success because we consider that the success of our clients results in success, for us also.�

Extract of the Ethics and Conduct Code

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SUSTAINABILITY REPORT 2013 3. Performance 3.2 Our clients and suppliers

OUR CLIENTS Designing joint solutions

Our priority: Client satisfaction

Gonvauto Iberia maintains a very close relationship with its clients in order to provide service that accurately responds to their needs.

We believe it essential to respond to our clients’ orders by providing an efficient service that features high quality and flexibility standards as well as responsiveness, in order to meet the established deadlines.

In most of the cases, our own staff is transfered to our clients’ facilities. Also, we pay frequent visits to their facilities and maintain periodical meetings the purpose of which is to create innovation and enhance our processes adapting them to our customers’ new requirements, ensuring that high quality and safety standards are preserved at all times.

All of our plants have a quality management system that is specific to the automotive industry and that has obtained the certification awarded by the ISO/TS 16949 standard.

In the framework of this management system, we analyse and provide a response to all incidences and complaints filed by our clients.

The quality department of each plant places at our clients’ disposal a service for reporting incidences and submitting complaints.

Every time that an incident occurs, a deadline is established in order to take the measures that may be required to solve it. Likewise, a period is established to measure the effectiveness of said actions. The purpose of these actions is to prevent repeated incidents from occurring.

Every year, each plant conducts a survey among its clients in order to know their degree of satisfaction with the service

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rendered. A subsequent analysis of the results will disclose the contents of their suggestions and expectations, which will enable us to provide a better service.

To support and complete these procedures, a periodical follow-up of the indicators is performed, relating compliance with the Delivery Plan, Complaints, Returns, Refused Material and/or production shutdowns to clients.

The chart below shows the major causes for complaint filed by our clients in connection with our services.

With the information obtained from both procedures, Gonvauto Iberia defines its annual plans and programmes of conti-

nuous improvement, so that our clients satisfaction ratings get better every year.

A good indicator of our client satisfaction is the number of complaints and returns that derive from material defects.

In certain cases, steel defects only show when formats are transformed at our clients’ facilities, thus rendering its detection rather difficult. In order to reduce the number of incidents, the length of employees’ training courses on defect detection has increased and, in order to improve the material quality, collaboration with steel suppliers has been reinforced.

As for complaints, average is around 200 rpm (reports per million). The distribution of these complaints according to their nature is outlined below:

Products

25%

Quality

20% logistics

20%

Service

35% Types of clients´ complaints

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SUSTAINABILITY REPORT 2013 3. Performance 3.2 Our clients and suppliers

SUPPLIERS In Gonvauto Iberia, the purchasing process, the outsourcing hiring, and the corresponding standardisation and management of suppliers are either centrally arranged by the corporate purchase department or directly from the plants, as local purchases.

The purchase selection criteria are directly defined by our customers. Within the automotive industry, requirements and standards in terms of environmental care, labour safety and health, quality, human rights and corporate social responsibility, are very strict.

Purchasing portal

Suppliers and central purchases Purchase of raw material (steel and aluminium) is centralised at the corporate purchase department.

Steel is the most commonly used raw good in all our production centres.

In respect of the purchases made by Gonvauto Iberia, whose purpose is to manufacture formats for the automotive industry, the quality standards demanded from the material are very high and it is usually the customer who determines which suppliers we will be buying from.

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The most relevant purchases, based on their cost, are carried out through the Supplier Portal available through our web site.

Each supplier is provided with a user code and a password that will allow them to access a private area. At the time of signing the contract, suppliers undertake to comply with the conditions established by the Company.

100% of

Suppliers and local purchases Local purchases are independently carried out by each production centre.

All centres have obtained a triple certification: quality, environment and labour safety and health.

Performance of the supplier selection, standardisation and evaluation process is based at all times on the principles of impartiality, rigour and objectivity.

The criteria that govern supplier standardization incorporate the three foregoing aspects, which will apply according to their relevance.

All of our suppliers are required to comply with the standardisation requirements established, which demand strict compliance with the Health and Safety and Environment regulations. Having obtained the certifications (ISO/TS 16494, ISO 14001 and OSHAS 18001) is regarded as a very positive aspect.

suppliers standarized

These requirements are covered by our Procedure for external supplier standardisation as part of the “Coordination Agreement�.

Certain types of supplier that perform riskless activities are therefore not required to undergo specific standardisation procedures.

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SUSTAINABILITY REPORT 2013 3. Performance 3.2 Our clients and suppliers

Certain types of supplier that perform riskless activities are therefore not required to undergo specific standardisation procedures.

For purposes of calculating the proportion of local suppliers, we have taken into account all of those whose headquarters

or business office are located within the region where the plant operates. As the graph below shows, local purchase has increased in 2013 compared to 2012, except in the case of Gonvauto Navarra, where the percentage has slightly decreased.

2013 2012

2013

2012

2012

2013

53% 76%

61% 64%

60% 57%

Gonvauto Barcelona

Gonvauto Galicia

Gonvauto Navarra

Percentage of the total purchasing budget allocated to local suppliers Purchases of steel and aluminium are managed at corporate level, therefore there are not included

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rials

Outsourcing With regards to the external suppliers that carry out works at our facilities, these companies are required to comply with the provisions of our procedures for coordination of entrepreneurial activities, in order to ensure that the working conditions of their employees in terms of Health and Safety are optimal and do not compromise those of the employees at Gonvauto Iberia.

82% 4%

94%

14% Services

94%

90%

Barcelona

8%

94% 94%

2%

Auxiliary materials Auxiliary materials

82%

82% 82%5% 1%4% 90% 90% Auxiliary materials

14%

Auxiliary materials

Raw materials

8%

Services

(Steel, aluminium, water...)

Raw materials 14% 14% Services Services

Raw materials

9

14%

(Packaging, refrigerant...)

4% 4%

Raw materials Raw materials

82%

5% 1% 4%

5% 1%

materials 5% 1% 5%Auxiliary 1%

94%

8% 8% Services 2% 2% (Die-stamping, cleaning, security...)

Navarra

Percentage of the number of suppliers per type of product or service

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SUSTAINABILITY REPORT 2013 3. Performance 3.2 Our clients and suppliers

Supplier Evaluation We have our own procedure for standardisation of suppliers and subcontractors that conform to the ISO/TS 16949 standard, which provides the criteria required for environment and labour health and safety matters.

We evaluate and select our suppliers in accordance to their capacity for supplying products that comply with our quality and reliability requirements, including requirements in terms of economic, environmental and social sustainability. Complementarily, suppliers are asked to provide information regarding issues such as work and environmental safety. In some cases, steel suppliers are directly selected by our customers.

The current year has seen the development of our Code of Conduct for Suppliers. Accepting the Code entails an ethical, transparent behaviour, the commitment to comply with the applicable

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regulations, the implementation of good practices that ensure a safe working environment and respect for human rights and the environment.

The Code has been delivered to our main local suppliers (the selection having been made in terms of purchase volume or risk) for their approval.

The payment terms arranged with our suppliers and subcontractors are clearly defined, supervised and periodically revised.

We duly comply with the payment terms established with our suppliers and subcontractors.

The payment terms established for less relevant suppliers have been defined in written and are based on previously set criteria.

CONFIDENTIALITY AND PRIVACY The company has defined the mechanisms required to preserve confidentiality of the information as well as customer and supplier data protection, and to manage and handle the documents according to their relevance.

Both the Ethics and Conduct Code and the procedures hereby defined provide the instructions required for creating, handling, filing and disposing of all documents that concern our customers and suppliers.

These procedures that regulate information safety apply irrespective of the information format (printed, written, electronic, video, voice, etc.), categorisation policies and processing of information and safety procedures and regulations that apply and are accessible through the corporate Intranet.

New procedures and systems for ensuring confidentiality and data protection are currently being developed in order to achieve that our devices are even safer.

“The policy of The Company is to maintain privacy of information and to protect data.�

Ethics and Conduct Code.

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SUSTAINABILITY REPORT 2013 Letter from the President

80

Letter from the President

4. PEOPLE 4.1 THE SIGNIFICANCE OF HEALTH AND SAFETY

HEALTH AND SAFETY: OUR PRIORITIES

OUR COMMITMENT TO OCCUPATIONAL RISK PREVENTION. ONE STEP BEYOND

IMPLEMENTATION AND DEVELOPMENT

OF OUR LABOUR HEALTH AND SAFETY SYSTEM

A FOLLOW-UP OF THE HEALTH AND SAFETY PLANS AND INDICATORS

HEALTH AND SAFETY INDICATORS

4.2 OUR COMMITMENT TO PEOPLE

OUR WORK TEAMS

EMPLOYMENT POLICY

SOCIAL BENEFITS

EMPLOYMENT-RELATED PRACTICES

Letter from the President

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SUSTAINABILITY REPORT 2013 Letter from the President

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Letter from the President

Chapter 1

04

THE SIGNIFICANCE OF HEALTH AND SAFETY

“Gonvarri Steel Industries consider Safety as a key aspect of management. They are committed to maintaining adequate and sufficient levels of preventive strategies for the health and safety of their workers, strategies that are restrictive and inescapable requisites in our productive activities.�

Extract of the Ethics and Conduct Code

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4. People 4.1. The significance of Health and Safety

Gonvauto Iberia employees are committed to promoting a prevention culture, that enhances our safety, health and welfare standards and thereby improve our accident rates.

HEALTH AND SAFETY: OUR PRIORITIES Preserving our safety is a priority and a strategic goal in Gonvauto Iberia. We are aware of the risks involved in our activity, and we know and analyse them all.

This policy is applicable to our teams and to other external agents or subcontractors that carry out their activities at our plants.

Every employee at our plants must do their utmost to develop and encourage safe behaviour and to achieve a healthy work environment that features healthy equipment and working conditions.

On a yearly basis, Managers approve the Annual Health and Safety Programme, which includes the investment required by each plant, a document stating said needs being forwarded to the Corporate Area for their approval.

The Health and Safety Policy at our work centres includes a principle based on integrating prevention that affects all members within the chain of command, which demands compliance with all existing Safety rules during performance or supervision of any activities.

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Monitoring the Health and Safety Plans and Programmes depends directly on each plant’s Management in order to integrate safety in every decision that is taken.

In order to manage all actions and procedures, the three service centres at Gonvauto Iberia have a Health and Safety Management System that has obtained certification under the OHSAS 18001 standard.

Also audits, which the law establishes as compulsory, are carried out under the provisions made by the Spanish Act 31/1995 on Occupational Risk Prevention. According to the results obtained from the audits, it has been concluded that: • The planning implemented in order to assess risks is adequate and, on the whole, complies with the legal regulations that are applicable in terms of occupational risk prevention.

• Both the preventive organisation that has been established and the qualification of the Specialist on Labour Risk Prevention are adequate, and the protocols for action are consistent with it. Also, the concept of prevention is successfully integrated in all levels in the company. • The opinion expressed by the auditing team is favourable in terms of the level of integration of prevention in the company and also in respect of its implementation degree, documentation and effectiveness.

No major non-conformities have been found at any of the centres.

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4. People 4.1. The significance of Health and Safety

Preventive organisation and structure Our preventive organisation and structure consist of: an in-house Prevention Service in Barcelona and, for Galicia and Navarra high education workers designated to such effect, who share responsibilities with the Human Resources and Environment Areas.

Safety Rules at Gonvauto Iberia As great believers of the sentence “All accidents are avoidable”, we work from several perspectives at the different plants of Gonvauto Iberia.

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Unsafe behaviour that may have consequences on the employee’s own safety or that of his/her colleagues will by no means be admitted, and the instructions issued by the company will be scrupulously observed.

Several Golden Rules have been set out, which include 10 basic milestones whose dissemination and compliance is compulsory in all centres:

GOLDEN RULES (extract) 1

Access and transit: to respect the designated areas, paying attention to mobile elements and wearing the corresponding Safety equipment at all times.

2

Order and cleanliness: this is a key element, and the employee’s responsibility.

3

Observance of the Safety instructions and use of PPE

4

Employees with the adequate theoretical and practical training will require an express authorisation allowing them to carry out special tasks.

5

Responsibility during equipment reset: all necessary precautions will be taken to prevent exposure of employees to automatic movement of any elements within a machine or equipment.

6

Occurrence reporting: any anomalies or occurrences will be notified to the person in charge, so that the event is analysed, managed and resolved by the people qualified to do so.

7

Advance task planning, providing all equipment, accessories, aids and tools that may be required to perform in a safe, comfortable manner.

8

Risks entailed during steel cutting: steel is extraordinarily sharp, and members of the production staff are required to wear the adequate protection equipment at all times.

9

Equipment operation: the precautions that must be taken in the presence of operating equipment, particularly when manual mode is on and the equipment is not being supervised. In such circumstances, it will be essential to perform an overall visual control of the environment where the operation is taking place.

10

Interventions taking place inside the equipment: these interventions are carried out by qualified staff, that follows the effective consignment system and equipment signalling to ensure the safety of the intervention.

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4. People 4.1. The significance of Health and Safety

Thanks to the “One Step Beyond” plan, Health and Safety is a key responsability for all the employees regardless their hierarchical position. The accident rates have significantly improved.

OUR COMMITMENT TO OCCUPATIONAL RISK PREVENTION. ONE STEP BEYOND In 2007, an Overall Assessment of the status of the Health and Safety indicators was carried out.

Through “One Step Beyond”, safety of the three Gonvauto centres is coordinated according to the following principles:

The areas for improvement that were identified included the need for an integrated awareness and prevention culture, which regards safety as an unavoidable requirement, thus contributing to avoiding accidents and incidents arising from any inadequate behaviour on the part of staff members.

• Totality: involving all hierarchical levels, and with regards to the analysis of risks and incidents, proposals for improvement, etc.

In response to such need, the program One Step Beyond was established for application in all production centres, which includes a new Health and Safety Corporate Policy that, once the necessary legal requirements are complied with, involves all members of Gonvauto, irrespective of their position within the company. The Programme demands unavoidable fulfilment of all Health and Safety requirements that are applicable to Gonvauto employees, when carrying out any activities or when making any decision.

Such demand is also applicable to employees in external companies providing services to Gonvauto.

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• Immediacy: providing an immediate response to occurrences; risks and suggestions are planned on the short term, and quick proposals for improvement are provided.

• Bonus Malus: the good one is rewarded whilst the bad one is punished.

• Pre-eminence: Safety and occupational risks prevention related information must govern all presentations; display boards must be particularly appealing and communication must be a two-way, fluid process.

• Proactivity: we must not wait for things to happen in order to make a decision; that nothing has happened does not mean that it will never happen.

• Consistency: continued fulfilment and coherence must govern all of the actions performed.

It should be noted that, according to the surveys conducted on labour climate, a positive aspect is the improved awareness of safety and health at the workplace.

Emergency situations Safety inspections Corporate audits

“One Step Beyond” is divided into the following sections:

Integrated Management System Security functions description per job Certifications Prevention plan Monthly meeting Internal treatment of accidents and incidents

IV

Evaluationn and monitoring

III

Resources

Investment plan Training plan Personal Protection Equipment Internal communication Intranet

I

Systems standardization

II

Commitment

Functions and responsabilities Decálogue Best practices Motivation and dialogue HR management: objectives & discipline

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SUSTAINABILITY REPORT 2013

4. People 4.1. The significance of Health and Safety

IMPLEMENTATION AND DEVELOPMENT OF OUR HEALTH AND SAFETY SYSTEM In order to ensure that Gonvauto Iberia provides a safe work environment, where our employees behave responsibly, we lay special emphasis on three aspects: Communication, Training and Monitoring in respect of the Health and Safety indicators.

Communication and channels for consultation In Gonvauto Iberia, keeping our communication channels in terms of safety and

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health is one of our most relevant purposes, due to the significant role played in connection with the work team and the subcontracted companies.

Generally speaking, a two-way communication flow exists that allows for both information and staff involvement, which is directly coordinated and managed at each plant, through monthly meetings that are held on the subject of Health and Safety.

The highest responsible on this subject is the Manager at each centre, which allows for speeding up bureaucracy, providing the relevant issue with the significance it deserves in a fast, transparent manner.

Gonvauto Iberia has established several communication channels, in order to encourage employees to make the necessary consultations and to become involved:

Direct communication Each employee will immediately report to its hierarchical superior any situation that, in his/her opinion, may entail reasonable risks to employees’ safety and health, as well as any incidents that may take place in his/her environment, which will subsequently undergo the corresponding analysis and definition of remedial actions.

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4. People 4.1. The significance of Health and Safety

Health and Safety Committees (H&S): Employees responsible for prevention matters have been allocated in each plant, said people representing all employees through the Health and Safety Committee.

The committee comprises, in equal numbers, both the workers’ representatives in Prevention matters and the Managers. The committee holds monthly meetings that cover issues relating to our teams’ Health and Safety and the reduction, and improvement, of all aspects regarding potential risks and labour-related accidents.

The workers’ representatives and the members of the Health and Safety Committee at each plant represent 100% of the staff.

Total

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workers’ representatives in Prevention

Committee members

2

4

Barcelona

4

8

Navarra

1

2

7

14

100% of our staff has its own collective bargaining and is entitled to vote.

Monthly Management Committees: The Management Committee at each plant meets every month in order to monitor the preventive actions performed (programmes, objectives, accident rates, investments, etc.).

Suggestions for improvement: Each plant has its own specific area which allocates a space devoted to the employees to submit their communications and suggestions for improvement.

Also, employees may make the corresponding enquiry if changes occur in their working conditions that may affect their Health and Safety.

Corporate Safety and Health forum: At the corporate Intranet, a Health and Safety forum provides all corporate information that may serve as reference (technical specifications, procedures, weekly accident and incident reports submitted to all Managers), and also provides the opportunity to participate in surveys and discussions on related matters.

Information Points on Health and Safety:

Participatory meetings:

These are areas that have been established in all plants, and are located near the employees’ work places, where updated information can be found, such as: • Investigation of incidents and accidents: the relevant data that led to the final outcome of the matter are provided.

• Involvement at the development and review of policies, objectives and Health and Safety Programmes, by means of the information being made available to the representation bodies.

Held with a monthly frequency during the working groups meeting, Health and Safety matters are handled in a participatory manner, gathering suggestions or ideas submitted by employees regarding the management of Health and Safety in their respective working environments.

Others: All employees are invited to collaborate in the different procedures implemented in terms of occupational risk prevention and Health and Safety, through their involvement in different procedures relating to: identification of risks, assessment of risks and elaboration of Safety instructions. This can be seen, for example, in the project for better ergonomics drawn up in Gonvauto Galicia.

Health & Safety policy

FR and accidents evolution

SR and lost journeys evolution

Health & Safety rules for the plant

Calendar

Evolution of the year-to-date rates Plant lay-out specifyng places where last accidents happened

Emergency case Information

Way how accidents happened

Damaged places of the body

First aid and how to do in accident case

Dangerous conditions

Unsafe acts and behaviors

Authorized workers for dangerous activities

Accidents or incidents reports about other plants

Emergency Organization and structure

Deficiencies detected en acciones correctivas

Others - Medical Checking program - Improvement in instalation photos - Union Commissions documents - Hygienical measurements - Staff agency workers

Schematization of a Health and Safety informative area

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4. People 4.1. The significance of Health and Safety

Best practice A work place ergonomics study in Gonvauto Galicia In order to improve the working conditions of employees of Gonvauto Galicia, a work place ergonomics study was carried out in 2012, which took into account the work place arrangement, the furniture and, more particularly, the employee’s posture.

This is a fundamental issue, given that adopting persistent, repeated forced postures during the working hours result in fatigue and in the long term may lead to disorder in the musculoskeletal system.

The purpose of the study was to enhance safety and effectiveness of working conditions, thus making up for the adverse effects that bad posture or a forced activity may have on our employees.

To such end, postures and movements adopted at the different work places were monitored and analysed, and the main risks for the musculoskeletal system were identified, in order to eventually define the improvement measures that may be required to reduce or eliminate such risks.

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Based on the conclusions reached, a plan including prevention measures and corrective actions was designed, such plan being currently implemented in order to achieve both a better design of our working environment and our employees’ health.

Some of these measures include actions such as: encouraging rotation among workers that carry out repetitive tasks with other employees in positions that entail different physical work and implementing systems that allow modifications in the height of the work surface in order to facilitate the actions being carried out (strip introduction and gripping, etc.).

Sub-task: protections placement

Position: protections placement

Trunk / neck / arm

Brazo Derecha Arm/ Antebrazo / forearm/ Mu単eca / right wrist

Extract of the ergonomics study for the strap position Chapter 4.1

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SUSTAINABILITY REPORT 2013

4. People 4.1. The significance of Health and Safety

More than

Training

health and safety training hours

One of the most relevant issues in the framework of safety management is training. All members of the Gonvauto Iberia staff are provided with theoretical and practical training and qualification that ensure safe working methods that become an inseparable part of their professional training and qualification.

Also, employees are encouraged to view safety as an integrating component of his/her responsibilities.

900

Moreover, training actions help to raise awareness in terms of Labour Safety 1 %manageGonvarri Productos Siderúrgicos S.A among employees and middle ment, and to encourage an active attitude in that respect through information, dissemination and demonstration of the company’s commitment.

242

Gonvauto Navarra

Socios de

901

Chapter 4.1

Gonvauto Barcelona

hours

550

Gonvauto Galicia

(Portugal)

96

109

Health and safety training hours per geographic area

Prior to joining a new post or position, each employee receives the necessary training on Safety and Health matters that will enable him/her to work comfortably and safely, while being fully aware of his/ her responsibilities and obligations.

Also, employees whose tasks are to be performed in special positions (Crane Bridge, forklift, working at heights, electrical risks, etc.) receive a specific training course.

The average of training hours per employee on labour risk prevention matters has slightly decreased, from a ratio/employee of 3.7 in 2012 to 3.6 in 2013.

Generally speaking, almost the totality of the training provided is focused on the plant’s personnel, given that they are more subject to potential risk situations.

The training is correspondingly updated and extended according to the requirements that may be identified.

Annual fire-fight training in Gonvauto Navarra This training includes aspects that are both theoretical and practical in terms of firefighting. Also, an emergency simulation is carried out, the purpose of which is to know the staff’s degree of familiarity with the Emergency Plan, and to assess its effectiveness, so that, in the event that a fire emergency arises, both personal and material damage is as low as possible.

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4. People 4.1. The significance of Health and Safety

Awareness campaigns Among the actions carried out, we would like to emphasise two Safety and Health awareness campaigns that are outlined next: • Awareness workshop: its goal is “Say no to accidents” .

Say no to accidents A campaign has been developed at the three Gonvauto centres, the purpose of which is to reduce workplace absenteeism and the number of work-related accidents.

This campaign has taken the form of a contest in which all workers within the plant who are not absent from work may participate. Each time that a milestone is reached, based on days on which no accidents have occurred (50 days, 100 days, 200 days, etc.), prizes are drawn among all participants. The contest ends when an accident leading to sick leave occurs at the plant.

The campaign strengthens team spirit and encourages workers to pay more attention to the Safety measures that have to be fulfilled.

541 days without accidents at the Gonvauto Galicia plant.

“We have been working very hard all these years to integrate prevention as part of the DNA of our organisation, and to achieve that every one of its members feels obliged to work safely and to enjoy the benefits obtained through safe work. Now, we have better facilities, we have improved our processes and minimised our incidents, and all of this has been made possible with the contribution of people that have embraced the idea that Safety is a central component of success in our daily performance”

Javier Izu, Manager of Gonvauto Galicia

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• A healthy lifestyle: we believe that our commitment towards our employees’ Health goes beyond our facilities. Therefore, it is our duty to actively encourage an improved well-being and quality of life among our employees.

A healthy lifestyle in Gonvauto Navarra Being aware of how important it is to lead a healthy lifestyle, a specific campaign to raise awareness on such matter has been developed.

First, a three-hour training workshop was carried out on the subject of the important role played by correct nutrition and physical exercise in our health.

This message was supported with articles published in the monthly bulletin that lay emphasis on the impact of lack of exercise and a sedentary lifestyle on health and the benefits of sport practice.

Complementarily, a running team was formed that participated at the 7th edition of Desafío de Empresas, a race organised by the Department of Sports and Health of the Navarra Government.

In order to encourage healthy, balanced nutrition, some of the items available at the company’s vending machine were replaced by healthier products, with lower sugar content.

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4. People 4.1. The significance of Health and Safety

A FOLLOW-UP OF THE HEALTH AND SAFETY PLANS AND INDICATORS

100

Being able to compare the Health and Safety indicators is fundamental to encourage continuous improvement and to learn from other plants’ experience.

The results obtained from the inspections and the definitions of the corrective measures are promoted among all employees through the notice board.

To such purpose, each plant in Gonvauto Iberia has implemented a safety inspection that is carried out on a monthly basis and on which the manager participates. Each supervisor carries out a safety inspection in all areas under his/her responsibility and collaborates in the definition and management of the implementation of the resulting corrective and prevention actions.

Also, corporate auditors in Health and Safety matters perform an annual audit in which implementation and compliance with the Health and Safety Plan, the systematics, the condition of the installations and best practices are assessed. The results obtained from these audits are published in Leading the Change to allow that the know-how is passed on to all centres.

Chapter 4.1

33%

less accidents than in 2012 On a monthly basis, all Gonvauto Iberia centres report their labour Health and Safety indicators to the corporate manager to consolidate that information with the other companies and to have updated information on its evolution.

Balance In comparison with 2012, accidents occurred during working hours have decreased by 15%, whereas absenteeism owing to this reason has decreased by 69%. The frequency rate has also diminished. It should be noted, also, that in 2012 and 2013, no fatal accidents or serious occupational diseases have taken place among our staff.

Health & Safety key figures

1 Accident

of subcontractors and suppliers (0 in 2012)

6 Accidents

with leave at the workplace (33% less than in 2012)

0 Serious accidents (as in 2012)

1,25

Occupational illness rate (as in 2012)

79

work days lost due to accidents (254 in 2012)

19,5

Accidents rate (20,7 in 2012)

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4. People 4.1. The significance of Health and Safety

HEALTH AND SAFETY INDICATORS Accident rate The accident rate among Gonvauto Iberia employees has decreased from 20.7 in 2012 to 19.5 in 2013. Additionally, only one accident entailing sick leave has taken place among subcontractors at the Gonvauto Barcelona plant.

for such purpose by the Spanish Ministry of Employment and Social Security.

This practice is compliant with current regulations that follow the recommendations issued by the International Work Association.

Externally, accident reporting and recording are carried out by telematics means through the Delt@2 platform (Electronic Statement of Injured Workers), provided

On an internal level, accident rates and reports are disseminated through the Safety and Health section of the corporate intranet.

Barcelona

With medical leave Without medical leave

Men

Women

Barcelona

Women

With medical leave Without medical leave

With medical leave

With medical leave

Without medical leave

Without medical leave

Navarra

Men

2013

19,5

33,1

2012

2012

Gonvauto Barcelona

Gonvauto Navarra

15,7

10,8

2013

2013

2013

19,5

33,1

2012

2012

14,7

Gonvauto Barcelona

Gonvauto Navarra

24,3

15,7

10,8

2013

2013

2013

19,5

33,1

2012

2012

14,7

Gonvauto Barcelona

Gonvauto Navarra

Navarra

With medical leave

With medical leave

Without medical leave

Without medical leave

Chapter 4.1

15,7

2013

24,3

Chart: Total number of accidents distributed by type, gender and geographical area

102

24,3

2012 Gonvauto Galicia

Accident rate distributed by geographical area

2012 Gonvauto Galicia

Common illness

Absenteeism and missed days

The sick leave rate due to common illness in Gonvauto Iberia was 571* in 2013, which entails an improvement of 36.5% in comparison to 2012.

The following charts show the missed days and absenteeism rates, which have been calculated based on 8-hour long working days.

*The rate has been calculated based on the total number of accidents among the total number of hours worked, taking into account the GRI indications in order to link it to the number of workers.

1200

210

190

other causes

other causes

other causes

Occupational disease On account of the activity we perform, 1200 210 occupational disease does not occur frequently in our facilities. other causes

occupational accident

occupational accident

Gonvauto Barcelona

Gonvauto Navarra

4 occupational accident

Gonvauto Barcelona

190 1200

other causes

In 2012 one case of 91occupational disea4 se was identified in Gonvauto Barcelona and one further case was identified in Gonvauto Navarra in 2013. The occupational disease rate in both years is 1.25.

91 occupational accident

other causes

0

occupational accident

other causes

Gonvauto Navarra

0

occupational accident Gonvauto Galicia

210

190

other causes

other causes

91

4

occupational accident

occupational accident

occupational accident

Gonvauto Navarra

Gonvauto Galicia

Gonvauto GaliciaGonvauto Barcelona

0

Lost days in 2013 due to occupational accidents and other causes

Absence hours Absence hours are reported in the chart below.

Occupational accident Barcelona

Navarra

Common illness

Others*

730

9067

13740

0

779

3678

30

1417

2040

Chart: Absentee rate distributed by working centre *The “Others� category corresponds to hours aimed to medical visits, individual and official permits, delays and early departure, union meetings and strikes.

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SUSTAINABILITY REPORT 2013

4. People 4.1. The significance of Health and Safety

Best practice Road Mobility Plan In 2012, Gonvauto Galicia implemented a Road Mobility Plan. The main reason for this decision was an increase of employees travelling due to work reasons, leading to potential traffic-related labour accidents.

Car driving is gradually becoming a relevant issue in the framework of labour risk prevention. Therefore, Gonvauto Galicia has decided to implement preventive and training actions on the subject of Road Safety, and developing actions addressed to promoting employee’s mobility. The totality of accidents occurred in work-related and in itinere accidents in Spain amount to approximately 10% of occupational accidents.

The Road Mobility Plan will organise the company’s activities in such a way that its employees will modify their mobility habits, allowing them to use valid, real, appealing alternatives to those habits that encourage the change.

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In order to promote the Plan, in 2013 the following measures in terms of road mobility have been implemented: • Awareness and Training: 57 hours of training have taken place in 2013, in the framework of the awareness campaign being carried out on the significance of safe driving both in the labour and personal environments.

• Promotion of public transportation use. The public transportation options that are available have been analysed.

• To conduct an investigation of all incidents.

Chapter 4.1

105

SUSTAINABILITY REPORT 2013 Index

Chapter 2

04

OUR COMMITMENT TO PEOPLE “We encourage the advancement of our professionals. Honesty, humility, tenacity and work have characterized our project since its commencement.

These values allow us to establish trust with all those with whom we work with.

We are convinced that business in the 21st century is based on the advancement of the use of initiative by its professionals. For this reason we promote the ideas of our collaborators and their capacity to carry them out. We also promote dialogue between our team and the members of all the implicated communities by sharing objectives, values and beliefs.�

People Corporative principles

Chapter 4.2

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

248

professional

OUR WORK TEAMS We, in Gonvauto Iberia, are highly committed to our professionals, who are the engine of our success and upon whom our continued growth depends.

We offer a stable working environment that provides a great deal of possibilities for promotion and mobility, due to our presence in several countries.

We tend to choose people who can identify with our culture and values, who understand what our customers expect from us and who, through their work, contribute to the development and enhancement of the company.

That is the reason why our corporate policy has established a system that is specific to human resources management and that is common to all service centres.

The system is mainly focused on people and guarantees quality employment.

Our employees Geographical distribution The Gonvauto workforce currently consists of 248 professionals, 140 of whom work in Gonvauto Barcelona, 59 in Gonvauto Galicia and 49 are employees of Gonvauto Navarra.

2013 2012 Employees

59 Gonvauto Barcelona

Gonvauto Galicia

63 Gonvauto Navarra

Gonvauto Iberia workforce distributed per geographic area

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Chapter 4.2

99,2% of our

workforce has a

Professional categories

permanent

With regards to the employment type, based on the level of responsibility allocated to each position, jobs are divided in three levels or professional categories: • Management.

• Heads of departments, middle management and supervisors.

• Administrative staff and plant employees.

In Gonvauto Iberia, we support our employees’ job stability, because, despite the overall recession situation, we do trust in long term relationships and in our professionals’ experience.

contract

This is evidenced by the fact that both in 2012 and 2013, 99.2% of our staff members have a contract of indefinite duration.

85 %

Administrative staff and plant employees

Socios de

2% Directors

13 %

1%

Heads of department, middle management and supervisors

Gonvarri Productos Siderúrgicos S.A (Portugal)

Workforce by employment type

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

Turnover

2,4%

Average age of the workforce The average age of the workforce at Gonvauto Iberia is mostly comprised between 36 and 55 years old, which is self-explanatory due to the low turnover levels among employees. The data shows the concern of Gonvauto Iberia towards permanent employment and our interest that our employees carry out their activity in a good working environment.

Staff turnover is very low and over the last years, we have suffered the recession that has affected the automotive industry. While we have taken all possible measures to preserve employment rates, the staff has decreased by 2.4 % during 2012/2013.

The situation has been more stable during 2013: 5 employees have left Gonvauto Galicia, two of whom have been transferred to other plants, whereas in the case of Gonvauto Barcelona the

9

number of workers leaving the company has been 2. In the case of Gonvauto Navarra, its workforce has not undergone any changes.

12

people

people

>56

years old

188 58

people

people

2012

199 38

people

2013 Workforce distribution per age

110

Chapter 4.2

people

36-55 years old

19-35 years old

y

7,3

Average seniority Staff’s distribution at Gonvauto Iberia tends to be very stable and its members share a great sense of company belonging.

Most of the staff has been working at our facilities from their inception.

What the indicators show is that our work culture is very much oriented towards promoting stability at the work place, responsibility in the performance of the work duties and company loyalty.

9

22

9 9

Average s of the

7,3

17,3 Average seniority Average seniority of the plant of the plant

13

Average seniority of the plant

Average seniority of the plant

Average seniority of staff

Average seniority of staff

Gonvauto Barcelona

Gonvauto Galicia

1313

A

Average seniority Average seniority of the plant of the plant

7,37,3

1111

e seniority staff

Average seniority Average seniority of staff of staff

Average seniority Average seniority of staff of staff

vauto elona

GonvautoGonvauto Galicia Galicia

GonvautoGonvauto Navarra Navarra

Average seniority of staff

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

EMPLOYMENT-RELATED PRACTICES Employee recruitment procedures Our values and principles define a commitment based on ‘effort and honesty’, which is to be shared by all of our employees.

We believe in personal merit and equal opportunities, as established in our Ethics and Conduct Code.

In the course of our recruitment procedures, we look for the best candidates, irrespective of their sex, race or religion.

Likewise, we struggle to promote local employment.

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Chapter 4.2

Selection criteria are defined by taking into account both academic and professional merit and the company’s needs, while encouraging internal job promotion in order to help members of our team at Gonvauto Iberia to move forward in their career.

Ongoing training and career development We believe that the most valuable employees already are within our Company.

Our efforts are addressed to developing talent, which means that the training and development of our employees are a priority to us.

We work to improve our employees’ training and qualification and to retain talent, trying at all times to ensure that promotion is linked to individual merits, competences and skills, from the recruitment procedure to the end of the employee’s career.

100%

New recruits We seek to achieve that new employees feel part of the team from the first day. To facilitate their awareness with the company, all employees receive a Welcome Pack, which includes several videos and courses under the motto “Make the company yours!”

of our vacancies have been internally filled en 2013

The pack helps us disseminate the messages and essential information concerning our company that we believe that our collaborators should know. Also, it allows newcomers to adapt to their work places in a manner that is both quick and effective, and helps current workers have a reference point regarding the company, its values and its mission.

In this way, the experience will be more attractive and dynamic to our new collaborators, thus enhancing the Company’s reception.

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

Internal job promotion In our experience, a positive measure in order to recruit and retain talent is to be able to show to our employees that their posts are not static and that their conditions may be enhanced through the internal recruiting and promotion system. “Job Posting� is a project developed in order to enhance internal recruiting. When the need arises to cover a specific position or to constitute a start-up team, the

job offer is internally published at the notice board located in each plant, and also through the channel on the corporate Intranet that has been created to such effect.

The job offer is only made public if after a period of time has elapsed, the length of which will vary depending on the urgency of the situation, the position has failed to be internally covered.

2013

Administrative staff and personal employees

2013

Heads of departments, middle management and supervisors

153

2013 2012

24

2010

2012

793

5054

2373

2012

Managers

Training hours per professional category

Administrative staff and personal employees

25

Heads of departments, middle management and supervisors

2012

2013

3

2013

3

2012

25

190

195

2013

2012

Managers

Number of trained employees per professional category

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Chapter 4.2

7.203

Training Beyond our economic data, in Gonvauto Iberia we all share the same objective: continuing improvement.

We believe that training is the best way to achieve it, as it contributes to our employee’s personal development and enhances their performance at work.

In 2013, 7,203 training hours on languages, professional skills and competences were provided, which amounts to 56% more than in 2012, owing to the efforts made to increase the training hours of technicians, administrative staff and plant personnel.

We assess the effectiveness of the training performed, as many of the courses provided have greatly contributed, among 47 2013 others, to improving production ratios, obtaining better results in the audits performed on management systems and increasing the number of improvement initiatives submitted by the employees.

17 2012

Performance and potential appraisal Ratio for women

We are progressively implementing a performance and potential appraisal assessment system among our employees.

According to this system, the person responsible for each employee performs a periodical, qualitative and quantitative appraisal of the effectiveness achieved during the employee’s performance of his/her activities and his/her compliance with his/her responsibilities deriving from his/her work post. The employee’s com-

petence is also assessed.

This appraisal allows us to identify certain difficulties such as lack of understanding or the employee’s adaptation to a certain activity.

training hours

Once the results obtained from the appraisals have been analysed, corrective measures have been implemented, which has led to enhancing the quality of the work performed and to achieve more satisfaction among employees In Gonvauto Iberia, 8% of its staff members in 2012, and 9% of its staff members in 2013 have already undergone

21 2013

9 2012 Ratio for men

47

21

2013

2013

17

9

2012

2012

Ratio for women

Ratio for men

Training hours per gender

Chapter 4.2

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

EMPLOYMENT POLICY Equal opportunities As defined in the Ethics and Conduct Code, in Gonvauto Iberia we encourage equal opportunities in all possible aspects.

12% of the workforce consists of women.

However, the vast majority of the work posts in Gonvauto relate to production and maintenance tasks have been traditionally carried out by men.

Gonvauto Iberia workforce: 2013

218 Men (88%)

30 Women (12%)

0% Managers

15%

Heads of departments, middle management and supervisors

100% Managers

85%

Heads of departments, middle management and supervisors

12%

88%

Administrative staff and plant employees

Administrative staff and plant employees

Women

Men

Workforce distributed by gender and professional category

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Chapter 4.2

Achieving work and life balance We encourage a working culture that is based on finding the right balance between the company’s production needs and the employees’ personal requirements, as we do believe that such balance is essential to achieving a working climate that provides support and collaboration.

Work in Gonvauto Iberia is very much subject to the demands of our customers and most employees are subject to specific shifts. Therefore, requests for reduced hours only amount to 3% of the total number of contracts. However, despite the fact that the working hours and type of work are very much conditioned by our customers’ demands, some non-formal agreements exist that encourage flexibility among employees at the time of organising their shifts (making it possible for employees to change shifts with their colleagues), taking extra time for personal matters or managing their rest times and breaks.

As they do not depend on production demands as much as the plant workers, flexible starting and finishing hours have been implemented for certain office workers, so that they are given the opportunity to adapt their working hours to their own, personal circumstances.

Balance of work, family and personal life Gonvauto Navarra is fully aware of the benefits, both internal and external, provided by a system that has been implemented for managing work, family and personal life balance.

Assisted by the Navarra Association of Female Business Owners and Managers, that struggles to promote the implementation of management systems seeking reconciliation of the working and the personal lives of the employees, in order to achieve better productivity rates, and an added value to society in general, Gonvauto Navarra has commenced to work on its conciliation project. To that end, within the social scope of the Corporate Social Responsibility, the following guidelines for action pursuant to developing the so-called Conciliation Plan have been defined: •

•

•

In 2012, an assessment of the situation was carried out, through conducting interviews and arranging working groups with different employees from all professional categories.

In 2013, the Conciliation Plan was defined, based on the results obtained from the Assessment and the current scenario.

Communication and implementation of the Conciliation Plan are expected to take place in 2014.

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

No discrimination

Working climate surveys

Based on the ‘no discrimination’ principle under the Ethics and Conduct Code, all centres of Gonvauto Iberia comply with the current Spanish regulation for Social Integration of the Disabled, through the several mechanisms provided by the Law.

In Gonvauto Iberia, our employees’ opinion is of paramount importance in order to improve day to day.

The commitment of Gonvauto Galicia is shown through the hiring of employees with different skills, whereas in the case of Gonvauto Barcelona and Gonvauto Navarra such commitment is reflected on the purchase and outsourcing of services and the hiring of employees with different skills.

Due to this, working climate surveys are conducted and thoroughly analysed, its periodicity being determined by each centre. What the surveys pursue is to help us find out which our strengths are and identify our weaknesses, so that we can establish the necessary actions to solve the problems, thus enhancing our employees’ satisfaction and, therefore, their performance.

After performing a joint analysis of the results obtained from the surveys conducted at the centres, Barcelona, Galicia and Navarra, we would like to highlight as our strengths: • A very positive assessment of work team.

• A good working climate.

• An improved perception of safety and health at the work place.

Finally, an aspect that needs amelioration is the necessity to improve the communication and the information shared among departments, as well as the information supplied by the managers to the employees.

Participation rates have been different among the centres, with an average of 45%.

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Chapter 4.2

Each Gonvauto Iberia centre, after analysing the results obtained, has implemented numerous corporate and internal initiatives.

Among the initiatives performed, we would like to highlight the following: In terms of corporate communication: Leading the Change At the Corporate Department, we are very aware of how important it is to align internal communication to our business strategy, in order to improve and promote communication and participation among the group’s companies and employees.

This is the context in which the Intranet known as Leading the Change was born in 2012.

This format aims at encouraging the creation of synergies among people, divisions and departments, and at facilitating daily work, by incorporating the latest technologies.

Access to the Intranet is allowed to all employees with a corporate email address. Such access allows employees to find updated information on the company, to use the online working groups, to share documents and to take an active part by submitting their opinions or participating in surveys, as outlined in chapter 2 of the report.

We are currently developing a corporate project known as “Leading The Change University�, whose goal is to stimulate, integrate and coordinate all training activities performed within the Group.

Chapter 4.2

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SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

In terms of communication among facilities In order to achieve communication at all levels within the company, and addressed to the plant employees who have not been provided with a corporate email address, a major effort was made to reinforce and improve internal communication by means of the following actions: • A general notice board, and a specific notice board for each Autonomous Production Group (APG) that contain documents relating to APG members, multi purpose, ideas for improvement, customers, suppliers, days without accidents, quality alerts, productivity charts, etc.

• A specific notice board that provides information on Health and Safety matters.

• Multidisciplinary work groups that meet periodically in order to analyse and propose ideas for improvement.

The information is regularly updated to ensure that all employees are directly and immediately made aware of all initiatives that may be relevant to their projects, the facilities and the company.

In Gonvauto Barcelona and Gonvauto Galicia, information screens have been strategically located that constantly display information regarding interesting issues, such as safety, environment, useful telephone numbers, employees’ benefits, strategies, etc.

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Chapter 4.2

25% of

SOCIAL BENEFITS We strive to develop actions aimed at enhancing the employee’s quality of life.

Gonvauto Iberia participates both in the actions for improvement established at the Corporate Department (Flexible Retribution Plan or the life and accident insurance policies) and in the actions for improvement developed at a local level.

The services that are currently being offered by the FRP are:

Ticket restaurant

Barcelona´s workforce benefits from a private health insurance

Nursery

Internal actions for improving flexibility, labour and personal life and, in general, our employees’ well being have been established at the three production centres.

We outline below some of these initiatives: Corporate initiatives

Private Health insurance

Computer equipment

The demand for these services in Gonvauto is as follows:

Flexible Retribution Plan The Group has defined a Flexible Retribution Plan (hereinafter, FRP), which is being progressively implemented in the different centres. Implementation of the plan may be performed in each centre by selecting the profiles and actions included in the retribution pack that are more suitable to their requirements.1 %

88 % Health insurance

Socios de

Computer equipment

8%

Gonvarri Productos Siderúrgicos S.A

Nursery

(Portugal)

The Plan provides the opportunity to integrate different products (including assets and services) within the retribution pack, offering both tax-related and labour benefits, thus adapting the retribution to the employee’s personal needs to the extent possible.

4%

Social benefits

Chapter 4.2

121

SUSTAINABILITY REPORT 2013 4. People 4.2. Our commitment to people

Life insurance In 2014, the plan is to continue to move forward in the development and implementation of the FRP by using two different approaches: expanding the amount of services available at the different production centres and increasing the number of possible beneficiaries, involving 100% of the staff members.

122

Chapter 4.2

All employees have been provided with a Life insurance Policy that covers death, disablement and professional incapacity, whether due to disease or accident.

Due to its significance, both to our employees and to their families, the company provides a coverage that exceeds the minimum legal requirements.

Local initiatives in Gonvauto Iberia On a local level, within the Gonvarri Production System (SPG), a method for communication has been established, from which we highlight the “ideas for improvement”.

These ideas are usually simple, inexpensive actions that have a significant impact on our daily life.

The different ideas are collected, assessed and if deemed as pertinent, executed.

Every time that an idea is accepted, a person responsible for it and the corresponding execution deadline are allocated, employees being informed of its status at all times through the SPG notice board.

After completion of the procedure, all ideas, including those having been accepted and those having been rejected, must be stamped with the supervisor’s signature.

Prizes are awarded to some of the ideas, and all of them are conveniently documented.

Ideas for Improvement have become a natural indicator of the degree of involvement of the staff at Gonvauto Iberia. In 2013, the ideas received have increased by 7%. Also, this allows for creating work groups that develop solutions pursuant to improving our daily effectiveness.

2013

Some of these ideas are highlighted below:

41 work teams

328 Ideas

executed

To automatically collect the tail roll table during the process - Gonvauto Barcelona Allows to: Improves efficiency Avoids accidents

To create a visual panel equipped with a colour-based coding system showing details relating to the loads Gonvauto Galicia Allows to: Improves staff´s

information Avoids mistakes

To change the arrangement and location of the area keeping the oil, oily water and new oils - Gonvauto Navarra Allows to: Improves tidiness and cleanlines Avoids confusion or misplacement

Chapter 4.2

123

SUSTAINABILITY REPORT 2013 Letter from the President

124

Letter from the President

5. PLANET 5.1 ENVIRONMENT

ENVIRONMENTAL MANAGEMENT IN GONVAUTO IBERIA

ENVIRONMENTAL IMPACT OF OUR PRODUCTS

ENVIRONMENTAL SUSTAINABILITY INDEX

OUR ENVIRONMENTAL ASPECTS

CLIMATE CHANGE AND EMISSIONS

5.2 VALUE CREATION

OUR IMPACT IN OUR ENVIRONMENT

OUR COMMITMENT TOWARDS THE LOCAL COMMUNITY

LIAISON WITH THE LOCAL ADMINISTRATION

ASSOCIATION WITH ORGANIZATIONS

SUPPORT OF SOCIAL ACTION

AWARDS AND RECOGNITION

Letter from the President

125

SUSTAINABILITY REPORT 2013 Letter from the President

126

Letter from the President

Chapter 1

05

ENVIRONMENT

“Gonvarri Steel Services promotes the adoption by all of its employees of a careful and active attitude in the management, control and minimization of the environmental impacts of our activities�.

Extract from the Ethics and Conduct Code

Chapter 5.1

127

SUSTAINABILITY REPORT 2013 5. Planet 5.1. Environment

ENVIRONMENTAL MANAGEMENT IN GONVAUTO IBERIA The commitment undertaken by Gonvauto in terms of environment protection entails that all procedures must be carried out in an efficient and responsible way; therefore the goods manufactured and delivered will be more competitive and profitable, will have a lower environmental impact and will be environment-friendly.

Such commitment is reflected on the Environmental Policy of all Gonvauto Iberia centres, which have developed rigorous environmental management systems that have been certified under the UNE EN ISO 14001 standard.

Environment-related training and awareness play a key role in encouraging responsible behaviour towards the environment.

In 2013, environment-related training and awareness have been focused on good practice and aspects such as energy efficiency, waste management and environmental management indicators.

During the present year, no relevant environment-related incidences or spills have occurred at the different centres of Gonvauto Iberia, to which must be added that we are not involved in ongoing legal proceedings or litigation relating to environmental issues.

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Chapter 5.1

ENVIRONMENTAL IMPACT OF OUR PRODUCTS We perform an analysis of our environmental impact during the process stage, by means of periodical evaluations deriving from our Environmental Management Systems.

The indicators available at our centres provide us with information relating to our consumption of natural resources and raw materials, and the production of waste, discharges and emissions that result from the production process. We also establish goals that pursue their minimization.

As to our products, we try to comply with our customers’ demands, by reducing the weight of the components , without such reduction having an adverse impact in their safety and durability..

Our product by the end of its operational lifetime All of our steel and aluminium parts are recyclable, which contributes to reducing consumption of natural resources and to saving energy, by transforming waste into raw material.

Steel can be recycled endlessly, its quality never diminishing. As a matter of fact, steel that was manufactured 150 years ago is still being recycled.

Per each ton of steel that is recycled, the Spanish steel industry saves around a ton and a half of iron mineral, 85% water, 80% energy and 95% coal*.

Another great advantage of aluminium recycling is that it leads to saving energy, as manufacturing aluminium products with recycled aluminium saves around 95% of the energy required for producing it from the mineral.

Due to its properties, aluminium is particularly suited to recycling, as none of its properties are lost throughout the process. In fact, 75% of the aluminium that has been manufactured for the last 100 years is currently being used in different products, thanks to recycling.

*(Source: 2013 Report on Steel Recycling in the Spanish Steel Industry UNESID –Unión de Empresas Siderúrgicas.)

LIFECYCLE OF OUR PRODUCTS

Raw materials

Raw Materials extraction

Fabrication

Energy

Distribution and sale

Waste ande emissions

Utilization

Final disposal

Products

Chapter 5.1

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SUSTAINABILITY REPORT 2013 5. Planet 5.1. Environment

ENVIRONMENTAL SUSTAINABILITY INDEX We monitor the development of our environmental aspects through the Environmental Sustainability Index (ESI).

ESI allows for the supervision of the steel service centres of Gonvauto Iberia, making it possible to standardize those elements that are devoted to environmental protection. The results supplied by each centre are weighted with a rating that varies between 1 and 100, 100 being the maximum score.

The rating is based on three key issues: • Legal and corporate environmental requirements: This section describes the applicable legal requirements as well as the corporate requirements.

• Environmental management: This section is similar to an internal audit as per the ISO 14001 standard; however, it also allows for the possibility of analysing its degree of compliance in order to compare it with those obtained in other centres.

• Environmental practice: Good environmental practice beyond legal requirements is appreciated, as, they provide economic and environmental improvement, including elements that enable energy efficiency.

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Chapter 5.1

The ESI is integrated in our annual internal audit process for each work place, but the information is measured and reported quarterly.

This facilitates the quantitative monitoring, being able to interpret the results either by workplace or by environmental risk activities, allowing internal comparisons. It also makes it easier the transfer the know-how and incentives the collaboration between plants.

n 2013, the global ratings obtained by the Environmental Sustainability Index of Gonvauto Iberia have improved 4% with regards to the previous year.

The increase in the indicator corresponding to the legal and corporate requirements area is due to the reinforcement of the control exercised on legal requirements and the actions performed in pursuit of compliance with the corporate requirements.

ESI

Also, the ratings awarded to environmental practice have increased by 7% because of the efforts made towards preserving order and cleanliness at the coil warehouses and the Recycling Points located at the plants.

2012

2013

1. Legal and corporate environmental requirements

79

85

2. Environmental management

58

65

3. Environmental practice

72

72

Average score

67

71

We want our products and processes to be efficient and respectful towards the environment and its preservation

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SUSTAINABILITY REPORT 2013 5. Planet 5.1. Environment

OUR ENVIRONMENTAL ASPECTS Raw materials Our environmental policy and management includes our commitment to monitoring and minimizing, to the extent possible, our consumption of raw materials and natural resources.

In Gonvauto Iberia, 99% of the raw materials used at our processes relates to steel. We are very aware of how necessary is to preserve this resource, and to such end, we have optimized our processes so that both the machinery and the cutting designs make the most of the steel plates, promoting efficient consumption and reducing waste generation.

Steel (mT) Barcelona

Navarra

Total

Chapter 5.1

Other relevant consumption include lubricating oils that are used to allow machinery to function properly and wood that is used in the manufacture of pallets where the final product is stacked.

The chart below shows consumption of raw material during 2013.

Aluminium (mT)

269,739

2,930

107,773

-

130,900

-

508,412

2,930

Chart 1: Steel and aluminium consumption (tonnes)

132

The first lines intended for aluminium cutting were installed in 2012, and have been in full production during 2013. This is, therefore, a new type of raw material consumption which our indicators will need to take into consideration.

Oil (mT) Barcelona

Navarra

Total

Wood (mT)

9.5

738

0.3

93.6

2.8

150

12.6

98.6

Chart 2: Otrer raw materials consumption (tonnes)

Natural resourcess Energy According to the results provided by the materiality study, aspects such as energy efficiency and renewable energies are relevant to our stakeholders. Consequently, we will now proceed to outline our energy consumption and the measures taken

by Gonvauto Iberia in connection with efficiency and investment in renewable energies.

Energy consumption Processes for longitudinal, transversal and silhouette cutting involve intensive energy consumption. In consequence, one of the main aspects within the Environmental Management System has to do with monitoring, reducing and controlling power consumption.

Our direct and indirect energy consumption during 2013 has been as follows:

Electricity (MWh) Barcelona

5,606

Barcelona

1,087 Navarra

Total

1,549 8,242

Chart 3: Electricity consumption (MWh)

Navarra

Total

Natural gas (MWh)

Gasoil (MWh)

0

0

0

0

2,300*

0

2,300

0

Chart 4: direct energy consumption by fuel type (MWh) *Destined to heating

Chapter 5.1

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SUSTAINABILITY REPORT 2013 5. Planet 5.1. Environment

350 t CO2 eq Energy efficiency avoided

To improve our energy efficiency is currently one of the goals included in our 2013-2015 Sustainability Master Plan, by which we commit ourselves to developing initiatives that will help us reduce our energy consumption, and consequently our carbon footprint.

The Gonvauto Barcelona plant has decided to reduce electrical consumption by means of a more efficient lighting system.

In 2013, a diagnosis was carried out on the plant’s lighting requirements, and the improvements that have been proposed are: substituting the existing bulbs with LED technology, which entails lower consumption and a longer average life, and to achieve an increased sectorization of the lighting.

Along the same lines, the lighting system at the offices has also been replaced by LED technology, which involved significant savings up to â‚Ź11,000 per year.

During 2012 and 2013, an Energy Assessment was carried out in Gonvauto Navarra. The diagnosis obtained led to the replacement of several engines and lighting systems by others with lower consumption levels, and to a higher efficiency of the air conditioning equipment.

Implementation of these measures has led to an estimated reduction of 10% in the energy consumption at the centres.

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Chapter 5.1

Renewable energy Gonvauto Iberia is aware that climate change is one of the main environmental problems of our planet, we try to reduce this impact through the promotion of renewable energies. Moreover this aspect is also a relevant issue for our stakeholders, so we target our efforts to respond to this demand.

Due to the climatic conditions of our country, Iberia Gonvauto has bet on the photovoltaic energy .

In 2010 a PV installation started operating at Gonvauto Navarra with an installed capacity of 524 kWh, and another at Barcelona Gonvauto in 2011 with an installed capacity of 696 kWh. These facilities were made over the roofs of the plants in collaboration with Gestamp Solar, allowing us to produce 1472 MWh of clean energy.

In Gonvauto Galicia a viability study was conducted and the PV energy project was finally rejected due to the weather conditions in the area.

Barcelona

Navarra

Power kWh

696

524

Electricity production MWh

736

736

t CO2 eq

175

175

Water Water at the Gonvauto Iberia facilities is used for domestic purposes and comes from the public network. Our manufacturing processes do not require water, and consequently no waste discharges take place.

However, given that water is an essential, increasingly limited natural resource, we try to make a sustainable use of it by conducting the necessary supervision and measurement.

Water Barcelona

1,350 756

Navarra

Total

2,300* 4,406

Water consumption (m3) * The average water consumption for employees and cleaning use is estimated in 1152 m3/year. The rest of the water consumption is destined to irrigation.

Waste management

The industrial waste water generated in Gonvauto Navarra comes from the cleaning of the facilities and the machines. Until 2009, management of water was carried out through an authorized management agent with an average annual cost of €8,000.

In 2012, a study on discharge characterization was done in order to obtain information regarding its composition, and also to find out whether it was compliant with the regional regulations in terms of discharging into the public network.

As a result, a hydrocarbon separator was placed in a position prior to the network discharge point, the installation of which entailed a cost of €2,000.

This simple system has numerous benefits, such as, among others: •

A significant reduction of the costs entailed in waste management: the separator allows for the discharge to take place directly on the network, thus eliminating the corresponding management costs.

•

An improved waste storage, as it is no longer required to allocate room to store the waste.

•

Compliance with the waste reduction plan, as the amount of generated waste is lower.

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CLIMATE CHANGE AND EMISSIONS Because of the activities we perform, we are not among the largest emitters of greenhouse gas. However, one of the main challenges of the automotive industry and its suppliers is to reduce the impact of our emissions, due to various reasons:

In Gonvauto Iberia, we are aware that our products are very closely related to the automotive sector, as they eventually become part of the cars themselves. Therefore, although in an indirect manner, we have a responsibility towards climate change and we must contribute to the goal of reducing emissions in the transport industry.

• Climate change is a global problem which we all have to fight, contribu- We are therefore in permanent contact with our customers, so that we can work ting to tempering its effects. together to improve our products, which • Projections indicate that passenger compliant with the quality, safety and transport and this particularly affects resistance standards, are becoming even car production, is going to increase lighter, which contributes to reducing the within the next years, which will re- car emissions throughout their life. sult in larger C02 emissions.

Using aluminium instead of steel is a reali• On the other hand, Ruling CE ty which will gradually be extended to the 443/2009 of the European Parlia- production of cars. Due to its special chament and the Council of 23 April racteristics, aluminium is approximately 3 2009, providing performance stan- times lighter than steel, its lower weight dards for new car emissions, establi- entailing lower fuel consumption, and, shes increasingly restricting duties consequently, lower emissions. regarding car emissions. Over the last years, the situation has evolved as Also, during our production process we follows: from 185g CO2/km in 1995 develop many initiatives and projects purto 164 g CO2/km in 2005; current pro- suant to achieving energy efficiency and jections aim at reaching 130 g/km in encouraging use of renewable energies, as previously outlined.

2015 and 95 g/km in 2020.

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Greenhouse gas emissions By calculating our carbon footprint, we intend to establish an objective indicator for measuring our emissions based on our production, thus setting targets for future improvement and achieving a better communication of our impact.

We have estimated our carbon footprint by using the Green House Protocol (GHP) standard that takes into account:

The reference source used for this calculation is the emissions factors for electricity provided by the International Energy Agency.

Using the consumption data from 2013, the CO2 emissions resulting from our production process are: Level 1

(direct emissions)

• Direct emissions (level 1): greenhouse gas emissions resulting from fuel burning during the production process.

• Indirect emissions (level 2): emissions generated at the electricity production plants as consequence of our electric energy consumption.

Barcelona

Navarra

Total

Level 2

(indirect emissions)

0

1,334.17

0

258.73

823.40

368.87

823.40

1,961.77

Chart 6: Greenhouse gases emissions (tCO2 eq)

• Other emissions (level 3): in our case, this reach is quite limited as we only include those emissions resulting the transport of our employees to our facilities.

Level 3

(employees transport emissions)

Barcelona

266.38 37.17

Navarra

Total

66.31 369.86

Tabla 7: Other indirect greenhouse gases emissions

(tCO2 eq)

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SUSTAINABILITY REPORT 2013 5. Planet 5.1. Environment

Waste Gonvauto Iberia has Environmental Management Systems, thought which waste is managed in the most appropriate way, in addition to the initiatives related to waste reduction that have been implemented.

Our waste is suitably separated, identified, stored and managed by authorised management agents.

Other non-hazardous waste

Organic waste: this type of waste is mainly generated at the rest areas and is managed by the council collection services or by an authorized managing agent.

Non-hazardous waste The type of non-hazardous waste that mostly derives from our production process is metal scrap. This waste entirely consists of steel and aluminium from the shavings resulting from the cutting itself and from outdated machinery.

This is a valorizable waste that is sold as scrap, with a significant market ready to use it. The total amount of metal scrap produced by Gonvauto Iberia in 2013 was 15,735 tons (in the case of Gonvauto Barcelona, scrap-related data are estimated).

Paper, cardboard and plastic: packaging waste or office stationery. The waste is separated and is managed by authorized agents.

Wood residues: it comes from wooden packaging and broken pallets. In the case of Gonvauto Galicia, wood is handled as a by-product that, once used, is returned to the supplier for the material to be recovered or reused.

Organic, paper, cardboard and plastic waste (tn) Barcelona

Navarra

Wood waste (tn)

76.3

42.1

5.9

93.6

32

150

Chart 8: Non hazardous waste generated in 2013 (tonnes)

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Hazardous waste The most relevant hazardous waste are dirty water (hydrocarbon and oily water), the oil that is used for lubricating the machines and in some cases for application during the stamping process performed at the final customer, and contaminated

material, all of them amounting to 99% of the total waste.

Other types of waste are also produced, although in smaller quantities, as shown at the chart below:

Barcelona

Navarra

Total

Lubricating oil

15.95

2.10

8.64

26.69

Contaminated materials

7.19

2.74

1.9

11.83

Sewage sludge

9.93

0

0

9.93

Solvents and contaminated packaging

0

0.94

0.26

1.2

Batteries, acumulations and fluorescents

0

2.39

0.01

2.4

0.98

0.32

0

1.3

2

33.02

9.86

46.88

W.E.E.E Dirty water

Chart 9: Hazardous waste generated in 2013 (tonnes) W.E.E.E: waste of electrical and electronic equipment Dirty water: water mixed with hydrocarbons and oil

In 2013, the total amount of hazardous and non-hazardous waste has been 100 tonnes and 2,098 tonnes, respectively.

Management costs amounted to a total of â‚Ź41,309.

Gonvauto Iberia has developed numerous initiatives pursuant to reducing the production of waste. The practical case provided applies to the Gonvauto Galicia facilities.

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Best practice Initiatives pursuant to minimizing generation of waste In 2012 and 2013, numerous initiatives have been carried out at the Gonvauto Galicia facilities in order to minimize the generation of waste.

Among these initiatives, we would like to highlight the following: 1. Reduction of the amount of residues consisting of contaminated rags and absorbents, by replacing the traditional management system with the use of special, recyclable textile cloths.

Resulting from this decision, in 2013 the consumption of cleaning rags decreased by 80%.

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2. Reduction of the amount of residues consisting of used gloves and sleeves as a result of the implementation of the washing and recuperation system.

This initiative, used in coordination with ccupational risk prevention actions, is a pilot experience and, based on the results obtained, it will be extended to the other companies within the Group. Resulting from this initiative, a 13% reduction of oilimpregnated gloves and sleeves has been observed.

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Chapter 2

05

VALUE CREATION

“We are convinced that business in the 21st century is based on the dialogue between our team and the members of all the implicated communities by sharing objectives, values and beliefs.�

Extract from the Ethics and Conduct Code

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SUSTAINABILITY REPORT 2013 5. Planet 5.2. Value creation

OUR IMPACT IN OUR ENVIRONMENT Our stakeholders

Economic impact We guarantee in every delivery the highest quality possible while fulfilling the required deadlines.

Clients

Stable employment and most of our contracts are undetermined.

Employees

We create economic value for our shareholders.

Shareholders We are great investment since we are supported by the Group´s solvency.

Our local purchasing policy benefits local suppliers Suppliers

We contribute to the local economy through the taxes we paied due to our business.

Local communities and administrations

Social media and social media channels

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Transparency in communication improves our reputation and this contributes in enhancing our sales activities.

Social impact

Environmental impact

We colaborate in the process and participate in the projects developed by our clients (ej mold design).

By locating our plants nearby our clients we reduce CO2 emissions from transporting our porducts to our customers.

With our efficiency besides our improvement we contribute with our clients improvement as well as strengthening our relationships.

We promote our employees´ professional development.

Indirectly, the automotive industry contributes to greenhouse gas emissions, but the trend is to reduce this.

Employement is almost completely local, reducing transportation to plants because of its proximity.

We create a safe environment.

We still need to improve our policies related in balancing family and work life as well as social benefits.

Transportation from the workplace generates CO2. emissions.

Generation of indirect employment through our value chain.

Encouraging local purchaising helps reducing CO2 emissions.

The purchases of our main raw materials are made at corporate level, previously defined by the automotive sector.

The carbon footprint is not part of our criteria when it comes to purchaising materials.

Participation in local industry associations and public administration´s initiatives.

We develop innovative products and solutions such as the use of aluminium, wich can reduce fuel consuption and so the volume of emissions to the atmosphere.

Participation in social events locally. we contribute to generate local employement.

Regular updates in our social media channels and corporate websites.

Development of the Leading The Change mobile APP that allows our stakeholders to access to this information easily from mobile devices.

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SUSTAINABILITY REPORT 2013 5. Planet 5.2. Value creation

OUR COMMITMENT TOWARDS THE LOCAL COMMUNITY The local economy We contribute to local economy through the generation of wealth, the payment of taxes and contributions, the purchase of goods from local suppliers and the employment that we create and maintain.

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Consideration must also be given to our investments pursuant to boosting the economic fabric.

We aim our products and processes to be efficient and responsible with the environment and its preservation.

Local suppliers The purchases made by Gonvauto Iberia are carried out in two different ways: • Centralised purchasing: The Corporate Purchasing Management at Gonvarri Steel Services is in charge of the management of purchases relating to steel and aluminium, given that these materials are common to all production centres. Large amounts are purchased, which entails significant improvement in prices and allows us to be more competitive.

• Local purchasing: The rest of the purchases and services are carried out at local level by the corresponding production centre, thus contributing to the creation of local, indirect employment across our value chain.

76% 64% 57% Gonvauto Barcelona

Gonvauto Galicia

Gonvauto Navarra

Percentage of the total budget of local purchases over the non-steel purchases

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Local employment During this year, a Code of Conduct for Suppliers has been developed. The Code is focused on ensuring respect of human rights and its purpose is to promote responsible behaviour along the supply chain.

Our objective is to disseminate the Code among our most relevant local suppliers, in 2013 and 2014.

Suppliers qualify as relevant on the basis of their volume of sales or their risk (environmental, social and human-right related risk).

Also, this Code will become part of our procedure for supplier standardization and follow-up in parallel to the assessments performed in terms of quality, environment, safety and labour health.

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It is our belief that the creation of value also applies to employment, as this is one of the driving forces for local economy.

In 2013, Gonvauto Iberia had 248 employees working at its facilities, 99% of whom have a steady job contract.

Almost the entire workforce of the company is local, their home addresses being located in the vicinity of the facilities.

This aspect benefits from the situation, as promoting local employment is a key issue in our recruitment policy.

The local community Gonvauto Iberia is directly involved with the communities in which it operates, in contributing to their development by means of numerous initiatives, such as transmitting knowledge among the different production centres, participating in projects focused on sustainability jointly with the public administration, becoming members of the local industrial associations and performing social action.

gives to our employees the opportunity to address this challenge and develop their activities in different locations, in which his experience and enthusiasm are necessary.

This also allows us to guarantee our customers the demanded standards of excellence, and simultaneously to transfer the know-how and corporate culture to new employees in different countries.

Training and mobility.

New experiences Training We create value through our initiatives in the areas of training and capacity building that aim at enhancing our employees’ professional profiles, by providing knowledge and experience that will allow them to adapt to the complex global industrial scenario, reach new goals and boost their career within our company.

Mobility In some cases, the advance and progression of our teams require a voluntary challenge that involves taking more responsibility or developing new projects in other countries, where they encounter new professional scenarios and cultures.

Therefore, and to strengthen unity within Gonvauto Iberia, when there is a vacancy availble, the internal promotion process

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SUSTAINABILITY REPORT 2013 5. Planet 5.2. Value creation

Best practice Start-up teams

We are a global company. Borders become blurred within a company that develops its activity in so many different locations.

A plant start-up occurs every time that a new plant begins its production activities.

In such cases, it is of paramount importance that certain members of our staff, with a thorough knowledge of our production systems, maintenance, quality, etc. and the functioning of our machinery, facilities and teams, agree to move temporarily to said production centre, with two essential purposes: 1. To arrange the start up and adjustment of the machines 2. To provide training to local workers

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In order to create the corresponding team, the Human Resources Department sends a message to all plants, requesting the publication of an internal offer, seeking participants in the Project. The recruitment process starts once all applications have been received.

Becoming involved in such projects usually isan appealing idea due to the experience it provides, as the latest start-ups have taken place in international locations.

The selected teams are made up by some of our professionals with better qualification and experience. These people have the opportunity to become, not only carriers of our know-how, but also ambassadors of our company, able to transmit our corporate values and culture.

Our experience Below are some of the experiences undergone by some of our employees in Gonvauto Iberia:

Rafael Martínez Fernandez Comes from: Production Department at Gonvauto Barcelona Experience: Gestamp Pune (India), Gonvarri Servestal Kaluga (Russia), Gonvauto South Carolina (United States.)

“A professional challenge. Personal satisfaction.”

Javier Sanjorge Grandal Comes from: Service technician at Gonvauto Galicia.

Experience: Gonvauto South Carolina (United States) and Gonvarri Servestal Kaluga (Russia).

“This has been a very enriching and meaningful experience. To take part in international projects such as the ones in Russia and the US have made me more aware of my weaknesses, which has allowed me to learn from them, in order to move forward with a more confident attitude in both my professional and personal life. Now I know how to amend and confront my faults. I am very happy for having met colleagues that are now my friends.”

Jose Antonio Zafra Nieto Comes from: Production Department at Gonvauto Barcelona Experience: Gonvarri Argentina (Argentina) y GonvarriServestal Kaluga (Russia).

“I would highlight two aspects from my experience: firstly, I have moved from having colleagues to having friends in Burgos, Madrid, Tarragona, Aviles, Pamplona, Brazil, Mexico, Argentina, Russia...The second issue is my own personal satisfaction, because among so many people working in the Group, the company has relied on me twice.”

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SUSTAINABILITY REPORT 2013 5. Planet 5.2. Value creation

Javier Liria Iglesias Comes from: Logistics Department at Gonvauto Barcelona Experience: Gestamp Pune (India).

“Trust is only the beginning. The real challenge comes next.

Involvement, enthusiasm.

Team work transmits responsibility.

Satisfaction is the result.

My gratitude to my life experience in India and its people.”

“Involvement is part of the challenge.”

David Pagola Comes from: Production Department at Gonvauto Navarra Experience: Gonvarri Kaluga (Russia).

“My experience in Kaluga has been very positive. Professionally speaking, it is a way of escaping routine, as one performs, and becomes aware of different activities. In the personal area, I have been able to meet people from different places. To live, and share my life with other people, in another country is much more than just being a tourist.”

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LIAISON WITH THE LOCAL ADMINISTRATION Gonvauto Iberia, as provided in the Code of Ethics and Conduct, maintains a fully transparent relationship with the local and regional Administrations, and collaborates with the Public Organisations in a disinterested way.

The three production centres have a relevant economic impact on the local administration, due to their contribution through payment of taxes and council and service fees.

On the other hand, Gonvauto Navarra takes part in local projects and initiatives promoted by the public administrations, which are relevant to different aspects of sustainability, on account of their conviction that it is a fundamental driving force behind sustainable development.

At the production centres of Navarra and Barcelona, also, they tap into the grid their energy produced through solar photovoltaic panels.

InnovaRSE Seal-giving ceremony at the Navarra Environmental Resources Center

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SUSTAINABILITY REPORT 2013 5. Planet 5.2. Value creation

Best practice Gonvauto Navarra and the InnovaRSE method InnovaRSE is developed within the Scheme of Aids for Promoting Entrepreneurial Social Responsibility, through the General Directorate for Work and Occupational Risk Prevention of the Rural, Industry, Employment and Environment Department of the Navarra Government. InnovaRSE is a method created by the Navarra Government, which aims at, progressively and voluntarily, implementing the Social Responsibility concept in the company world.

The method consists of 4 annual stages (RSE Diagnosis, Action Plan, Sustainability Report and subsequent Improvement Cycles).

Gonvauto Navarra has joined this Project, by developing its RSE Diagnosis in 2012,

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Chapter 5.2

and based on the conclusions reached, by developing the corresponding Plan for Action in 2013.

In addition to contributing to achieving a more responsible Company management, InnovaRSE also intends to create a local network of companies committed towards sustainability.

Along these lines, the people responsible for this Project in Gonvauto Navarra participated in a series of meetings addressed to suppliers for Volkswagen Navarra that were integrated in the 2007-2013 Spain – France – Andorra Territorial Cooperation Programme, for developing the economy, thus encouraging the creation of synergies, exchanging experiences and achieving closer relationships.

Stages of InnovaRSE Method Source: Stages of InnovaRSE Method, Navarra Government

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ASSOCIATION WITH ORGANISATIONS In January 2014, Gonvauto Iberia adhered to the United Nations Global Compact through its parent company.

This voluntary initiative is based on the commitment to adopt, support and promote the Ten Principles of the Global Compact, in the fields of Human and Labour Rights, Environment and fight against Corruption.

Also, as part of this initiative, Gonvauto Iberia has become a member of the Spanish Network for Global Compact, in order to gain access to information regarding the developments and initiatives that arise in relation to national and international sustainability, therefore contributing to improving our communication and transparency with our groups of interest.

Our participation in industrial associations and organisms is also relevant, as it allows us to be aware of the latest news, trends, advances and developments concerned with our activity, to participate in consultations and to contribute to the definition of a sectorial reference framework.

We are members of several organisations, the most relevant of which are the following:

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Chapter 5.2

• Gonvauto Iberia • Global Compact • Spanish Network for the Global Compact • Spain-China Council Foundation •

Spanish Confederation of Metal Business Organisations (CONFEMETAL))

• Bureau veritas • Gonvauto Barcelona • Foment del Treball.

• Catalan multi-sectoral company owners association - CECOT. • Catalonia Automotive Cluster.

• Gonvauto Galicia • Employers association of metal companies in the province of Pontevedra (ASIME).

• Galicia Automotive Cluster (CEAGA) • Gonvauto Navarra • Metal Business Owners Association (ANEM).

• Navarra Industry Association (AIN).

SUPPORT OF SOCIAL ACTION In these uncertain times, our values have contributed to our growth and stability to face recession.

We believe that our human team, guided by our values and through their hard work and commitment, has managed to turn our company into a better place.

We are aware that the value of a business goes beyond its financial performance and that we are bound through commitment and respect for our environment.

Therefore, we develop many initiatives, from the corporate area and, at a local level, from the production centres.

Corporate initiatives: We would like to highlight the following actions promoted at corporate level:

Lo Que De Verdad Importa Foundation (LQDVI) The main goal of the LQDVI Foundation (which in Spanish means “What Really Matters”) is to encourage the development and dissemination of universal human, ethic and moral values. Well aware of the importance of these values that we share, the Company has provided a framework for collaboration through the Foundation.

On 8 November 2013, some employees from Gonvauto Barcelona attended a Congress organized by the LQDVI Foundation, where they had the chance to listen to the inspirational words of Jorge Font, Alex Corretja amd María Belón.

The invitations to the event were accompanied by a book published by the Foundation, which consists of a collection of real life testimonials transmitting a motivational message for achieving success.

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• Maria Luisa Murillo Miranda, Staff administration Specialist in Gonvauto Barcelona: Last 8 November, I attended the “Lo Que De Verdad Importa” Meeting, held in Barcelona. It was a very interesting, emotionally charged experience, on account of what the speakers said to us. As María Belón, one of the speakers, said “all of us live through a tsunami at some point of our life”, and that is what makes you realize many things that you have failed to value or give the significance required up to now.

• Rafael Elías, Head of Human Resources and Labour Health in Gonvauto Barcelona: The What Really Matters Congress has been a very enriching, valuable experience through the life stories of three individuals that have overcome difficult situations: Jorge Font, Alex Corretja y María Belón.

Being able to collaborate with this Foundation, by becoming part of the message conveyed and the work performed, is, to Gonvauto, a source of pride that emphasizes the sense of belonging to the organization experienced by the people who are part of it.

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Juan XXIII Foundation for Intellectual Disability This foundation was born as way to improve the quality of life of intellectual disabled adults and to encourage their social integration.

Gonvarri Steel Industries participates in the foundation by hiring the services provided at its special employment centre, including the rental of rooms for celebrating events and the catering service.

In addition to it, in the framework of the 3rd International Week of Corporate Volunteer, 32 employees from Gonvarri Steel Industries became corporate volunteers at an amusement park, accompanying intellectually disabled members of the Foundation.

Word Central Kitchen (WCK) Word Central Kitchen (WCK) is an NGO led by the chef JosĂŠ AndrĂŠs, whose mission is to find sustainable solutions in order to put an end to unsafe food and malnutrition, thanks to sustainable nutrition and improvement of the local wealth.

WCK combines three goals: to contribute to eliminating the chronic food insecurity suffered in certain regions, to encourage the use of new technologies and fuels in order to ensure safer, more sustainable cooking methods, and to ensure a rapid response in the areas that have undergone catastrophes or humanitarian crisis.

collaborates with the most important non-profit organisations that are in charge of the most relevant initiatives in the fight against hunger in the world.

Aware of the significance of this project, Gonvarri Steel Industries supports it by contributing to its funding.

To achieve these goals, WCK has developed different programmes that seek to encourage healthy, sustainable nutrition (purchases made locally, support of local agriculture, use of traditional recipes that incorporate nutritious ingredients, use of sustainable fuels and technologies, etc.).

This NGO was born in Haiti in 2010, after the earthquake that devastated the country, and it is precisely there where its main projects are being carried out (a school canteen, a network of local kitchens, a bakery and a cooking school), where they promote tools and training for use of rain water collectors, drainage systems, solar stoves and hygiene of kitchens and stoves. Currently, WCK cooperates with other projects in South America, Central America and Africa and

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SUSTAINABILITY REPORT 2013 5. Planet 5.2. Value creation

Local initiatives At local level, the Gonvauto Iberia centres have contributed to social development in 2013 through direct investments and sponsorship of local initiatives and food collection campaigns.

Gonvauto Galicia:

In 2013, the most significant initiatives that we have conducted are:

The plant collaborated in the campaign “Solidaridad Banco de Alimentos Automoción in Vigo 2013”. Thanks to the participation of the Gonvauto Galicia team, 250 kilos of non-perishable food were collected.

Gonvauto Barcelona:

Gonvauto Navarra:

On an annual basis Gonvauto Barcelona, sponsors sport-related activities carried out by teams formed by its employees.

Based on the proposals received, a sum is allocated to each team for payment of registration fees, clothing, sports material, etc. During the 2013-2014 season, a cycling team and two athletics teams are being sponsored.

The 7th edition of the Companies Challenge, organised by the Sports and Health Department of the Navarra Government, was held in April and May. Gonvauto Navarra joined the challenge through the events “Run&Bike” and “6 km Race”, with two teams consisting of five and four employees, respectively. In this event, competition was only secondary as the emphasis was on the promotion of values such as team spirit, personal well-being and corporate culture, and the collaboration paid to the NGO MedicusMundi Navarra and its social action.

Annual financial contribution to the magazine published by the CastellBisbal local school.

During 2013, the total sum of monetary donations at local level amounted to €4,080.

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AWARDS AND RECOGNITION Corporate Area in 2013

Gonvauto Barcelona

• Silver Stevie Award, given to Leading the Change in recognition of the best practice performed in the area of corporate internal communication.

• Finalist for the Atlante Award for Safety and Health Good Practice, given by “Foment del Treball”. November 2012.

• Entrepreneurs & Employment Award for innovation in the area of Human Resources, given to the Leading the Change Project by the Expansión Economy Journal.

• 16th position in the Study on integration of Occupational Risk Prevention to Social Responsibility Policies and its contribution to entrepreneurial success in 2013.

Gonvauto Navarra • Labour Conciliation Reconcilia Seal given by the Association of Female Managers and Business Owners in Navarra. November 2012 • Healthy Company Blue Seal, given

by Mutua Navarra in 2013.

• InnovaRSE Seal, given by the Navarra Environmental Resources Centre.

2012 and 2013.

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Letter from the President

ANNEX

Letter from the President

163

ANNEX Perimeter and coverage of the Report

Regarding the scope of the Report:

This first Gonvauto Iberia Sustainability Report has been drawn up in conformity with the requirements defined by the Global Reporting Initiative (GRI 3.1), in order to define the contents of the report and to ensure its quality.

• Information on the company and financial information are covered in chapter 1. Our organisation, and 3.

Performance.

We intend to publish a sustainability report annually.

The scope and coverage of this report will be extended in future reports, so that a full report of the Group will be ready by 2015, in respect of the information available and data corresponding to 2015.

Through this Report, Gonvauto Iberia provides information relating to our activities and to our main social, economic and environmental impact undergone 2013, also making reference to those relevant events that have taken place in 2014 up to its publishing date.

Gonvauto Iberia comprises the following production centres: • Gonvauto, S.A. (trade name: Gonvauto Barcelona).

• Gonvarri Galicia, S.A. (trade name: Gonvauto Galicia).

• Gonvauto Navarra, S.A.

• The information that concerns our approach towards sustainability and the dialogue with our groups of interest are both contained in chapter 2: our sustainability approach, whereas section 3.2 contains information regarding customers and suppliers.

• Information on our human team is reflected throughout chapter 4: People, in sections 4.1 Labour Safety and Health, in those aspects concerned with labour safety, and health and 4.2 Our commitment to people.

• Social and environmental information is provided throughout chapter 5. Planet, in sections: 5.1 Environment and 5.2 Creation value.

• In those cases with a coverage and scope different from the one pointed out, the suitable explanations have been provided.

The annual accounts of the three companies within Gonvauto Iberia are annually submitted to an audit performed by independent, external companies, in compliance with the ongoing legislation.

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SUSTAINABILITY REPORT 2013 G3.1 Content Index

Page

1. Strategy and Analysis 1.1 - Statement from the most senior decision-maker of the organization.

1.2 - Description of key impacts, risks, and opportunities.

2. Organizational profile 2.1 - Name of the organization 2.2 - Primary brands, products, and/or services Note 2.3 Gonvauto Peninsula IbĂŠrica: Gonvauto, S.A. (Barcelona), Gonvarri Galicia, S.A. (Gonvauto Galicia) and Gonvauto Navarra, S.A. Note 2.4. c/ Embajadores 458.

28053 Madrid Spain Note 2.5.

Gonvauto Iberia operates only in Spain.

18 28-31

-

2.4 - Location of organization’s headquarters.

-

2.5 - Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

-

2.7 - Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Annex

7-9, 26-33, 4548, 58-63,88, 128-130, 132, 134, 136-137, 144-146

2.3 - Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

2.6 - Nature of ownership and legal form.

166

7-9

18-19

20-25

Status

Complete information Partial information Not available Not applicable

G3.1 Content Index

2.8 - Scale of the reporting organization.

• • • •

Note 2.9.

There have been no significant changes in the reported companies during the year 2013.

•

Status

17, 58,108

Number of employees; Net sales Total capitalization broken down in terms of debt and equity and Quantity of products or services provided

2.9 - Significant changes during the reporting period regarding size, structure, or ownership: •

Page

-

The location of, or changes in operations, including facility openings, closings, and expansions; Changes in the share capital structure and other capital formation, maintenance, and alteration operations.

2.10 - Awards received in the reporting period.

161

3. Report parametrers Note 3.1.

Information and data of the year 2013.

3.1 - Reporting period (e.g., fiscal/calendar year) for information provided.

165

Annex

167

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G3.1 Content Index

Page

Note 3.2.

There are no previous reports.

3.2 - Date of most recent previous report (if any).

-

Note 3.3.

Annual

3.3 - Reporting cycle (annual, biennial, etc.)

-

Note 3.4. rsc@gonvarri.com, sostenibilidad@gonvarri.com

3.4 - Contact point for questions regarding the report or its contents.

-

3.5 - Process for defining report content: • • •

Determining materiality Prioritizing topics within the report Identifying stakeholders the organization expects to use the report.

3.6 - Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

Note 3.7.

There have not been established any limits on the scope or boundary of the report, more than what is indicated in this index.

168

Annex

165

3.7 - State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

-

3.8 - Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

18-25

3.9 - Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

Note 3.10 There are no previous reports.

45, 48-49

3.10 - Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

165

-

Status

Complete information Partial information Not available Not applicable

G3.1 Content Index Note 3.11 There are no previous reports.

3.11 - Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

3.12 - Table identifying the location of the Standard Disclosures in the report.

Note3.13 Gonvauto Iberia report has not been verified externally

3.13 - Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider.

Page

Status

-

166-181

-

4. Governance, Commitment and Engagements

Note 4.4.

Ethical committee and communication channels

4.1 - Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

19

4.2 - Indicate whether the Chair of the highest governance body is also an executive officer.

9

4.3 - For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

18

4.4 - Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

26, 45-48

Annex

169

SUSTAINABILITY REPORT 2013 Annex

G3.1 Content Index

Page

Note 4.5.

Remuneration of the equipment depends on the outcomes of both the Gonvauto Iberia and the Corporate results at the end of the year.

4.5 - Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

-

Note 4.6.

The composition and structure of the government and the group management is regulated by the “Estatutos Sociales” and the applicable legislation on companies.

4.6 - Processes in place for the highest governance body to ensure conflicts of interest are avoided.

-

4.7 - Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

4.8 - Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

4.9 - Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

Note 4.11.

Consult the financial audited report

170

Annex

19

38-44

38-44, 61-62, 182-183

4.10 - Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

38-44

4.11 - Explanation of whether and how the precautionary approach or principle is addressed by the organization.

61-62

Status

Complete information Partial information Not available Not applicable

G3.1 Content Index

Page

4.12 - Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

157-160

4.13 - Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:

156

• • • •

Status

Has positions in governance bodies Participates in projects or committees Provides substantive funding beyond routine membership dues Views membership as strategic.

4.14 - List of stakeholder groups engaged by the organization.

4.15 - Basis for identification and selection of stakeholders with whom to engage.

4.16 - Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

4.17 - Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

45

45

42-43, 45-48

49

Annex

171

SUSTAINABILITY REPORT 2013 Annex

GRI G3.1 INDICATORS KPI

Disclosure of management approach

Page

Economic performance

Note EC4 There has been no significant financial subsidies by the governments in 2013 Note EC5 Established in the Collective Bargaining Agreements applicable to each Gonvauto factory in Barcelona, Galicia and Navarra.

172

Annex

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

58-59, 146148, 156-160

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

136

EC3

Coverage of the organization’s defined benefit plan obligations.

121-123

EC4

Significant financial assistance received from government.

-

EC5

Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

114-115, 148-151

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement.

-

-

74-77, 147-148

Status

Complete information Partial information Not available Not applicable

KPI

Disclosure of management approach

EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts

Page

Status

74-78

Environment EN1

Materials used by weight or volume.

132

EN2

Percentage of materials used that are recycled input materials.

138

EN3

Direct energy consumption by primary energy source.

133

EN4

Indirect energy consumption by primary source.

133

EN5

Energy saved due to conservation and efficiency improvements.

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

EN8

Total water withdrawal by source.

EN9

Water sources significantly affected by withdrawal of water.

EN10 Percentage and total volume of water recycled and reused.

133-134

133-134

133-134

135 -

-

Annex

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SUSTAINABILITY REPORT 2013 Annex

KPI Note EN11, EN15 The three factories are located in industrial areas. They arent located in either protected or nearby areas. The impact on biodiversity is low and it fulfills the land use regulations.

Disclosure of management approach

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

-

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

-

EN13 Habitats protected or restored.

-

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

-

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

174

Annex

-

EN16 Total direct and indirect greenhouse gas emissions by weight

137

EN17 Other relevant indirect greenhouse gas emissions by weight.

137

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Note EN19, EN20 Our activity doesn’t release either emissions of oxides of sulfur and nitrogen (SOx and NOx) or particles or substances that damage the ozone layer derived from the cooling gases.

Page

133-134

EN19 Emissions of ozone-depleting substances by weight.

-

EN20 NOx, SOx, and other significant air emissions by type and weight.

-

Status

Complete information Partial information Not available Not applicable

KPI

Note EN23 There hasn´t been no significant spills in the Gonvauto Iberia facilities

Disclosure of management approach

EN21 Total water discharge by quality and destination.

135

EN22 Total weight of waste by type and disposal method.

138-141

EN23 Total number and volume of significant spills.

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Noe EN28 There hasn´t been derived monetary sanctions for environmental breaches

Page

Status

-

-

128-131

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

-

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

-

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

128-129, 137

EN30 Total environmental protection expenditures and investments by type..

139

Annex

175

SUSTAINABILITY REPORT 2013 Annex

KPI

Disclosure of management approach

Page

Employment LA1

Total workforce by employment type, employment contract, and region, broken down by gender.

LA2

Total number and rate of new employee hires and employee turnover by age group, gender, and region.

108, 110

LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

121-122

LA4

Percentage of employees covered by collective bargaining agreements.

60

Note LA5 The communications on organizational changes are made in accordance with regulations and specified in the “Estatuto de los trabajadores� (Royal Legislative Decree 1/1995) and collective agreements.

LA5

Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

-

LA6

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

92

Note LA7 There have been no victims who have died in Gonvauto Iberia in 2013.

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

99

LA9

Health and safety topics covered in formal agreements with trade unions.

46

176

Annex

108-109, 116

102-103

Status

Complete information Partial information Not available Not applicable

KPI

Note LA14 Included in collective agreements. The compensation is set according to the professional standards and performance, independently of the gender.

Disclosure of management approach

Page

LA10 Average hours of training per year per employee by gender, and by employee category.

96, 114

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

112-113

LA12 Percentage of employees receiving regular performance and career development reviews, by gender.

115

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

116

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

112

LA15 Return to work and retention rates after parental leave, by gender.

Status

-

Human rights

Note HR3 Complete in Ethics and Conduct Code

HR1

Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.

74

HR2

Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

-

HR3

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

-

Annex

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SUSTAINABILITY REPORT 2013 Annex

Note HR6, HR7 Child labor and forced labor are not risk factors in our organization, due to the qualification required in our employees and because such as compliance with applicable.

Note HR8 Regarding the security companies that Gonvauto has contracted in Spain, which are in charge of the surveillance, these are companies legally regulated and their staff has sufficient training to develop their activity.

KPI

Disclosure of management approach

HR4

Total number of incidents of discrimination and corrective actions taken.

-

HR5

Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.

-

HR6

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

HR7

Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

-

HR8

Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

-

HR9

Total number of incidents of violations involving rights of indigenous people and actions taken.

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

Note HR11 There have been no complaints regarding Human Rights in Gonvauto IbĂŠria.

178

Annex

HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.

Page

-

-

-

-

Status

Complete information Partial information Not available Not applicable

KPI

Disclosure of management approach

Page

Status

Society S01

Percentage of operations with implemented local community engagement, impact assessments, and development programs.

S02

Percentage and total number of business units analyzed for risks related to corruption.

Note S03 There has been training on the code of ethics to both the current and new employees.

S03

Percentage of employees trained in organization’s anti-corruption policies and procedures.

Note S04 There haven´t been recorded incidents of corruption

S04

Actions taken in response to incidents of corruption.

-

S05

Public policy positions and participation in public policy development and lobbying.

47, 156

S06

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

-

S07

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

26, 38-41

S08

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

NotaeS06 Due to our Code of Ethics and Conduct financing political parties are not allowed

Note S08 There have been no fines or penalties.

78, 136, 144145

-

26-27

-

Annex

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SUSTAINABILITY REPORT 2013 Annex

KPI

Disclosure of management approach

Page

Product responsability

Note PR2 There have been no incidents in 2013

Note PR6 Completed in Ethics and Conduct Code

180

Annex

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

PR3

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

39-40, 44-46, 72-73

PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

-

28-31, 68-69, 128-129

28-31, 62, 6769, 72-75

28-31, 62

-

Status

Complete information Partial information Not available Not applicable

KPI

Disclosure of management approach

Page

Note PR7 There have been no incidents or complaints.

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

-

Note PR8 There have been no significant strong sanctions. View Application of the provisions of Law 15/1999 of December 13 of the Protection of Personal Data, and Royal Decree 994/1999 of 11 June, in which the safety measures of automated files that contain personal data were approved.

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

-

PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

-

Status

Note PR9 There have been no significant strong sanctions.

Annex

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SUSTAINABILITY REPORT 2013 Annex

THE UNIT NATIONS GLOBAL COMPACT, GRI KPI´S AND MILLENNIUM DEVELOPMENT GOALS

Iberia Gonvauto with this report intended to show its continuity and commitment to the principles of the Global Compact, to which it has adhered in January 2014.

Principles

Annex

GRI Indicators

Millennium Development Goals

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights

EC5, LA4, LA6-8; LA1314, HR1-9, SO5, PR1

Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality rates

Principle 2: Make sure that they are not complicit in human rights abuses.

HR1-9, SO5

Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria, and other diseases Goal 7: Ensure environmental sustainability Goal 8: Develop a global partnership for development

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

LA4-5, HR13, HR5, SO5

Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women

Principle 4: The elimination of all forms of forced and compulsory labour

HR1-3, HR7, SO5

Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women

Principle 5: The effective abolition of child labour

HR1-9, SO5

Principle 6: The elimination of discrimination in respect of employment and occupation.

182

The following table shows the correspondence between the principles of Global Compact and to the GRI sustainability indicators, in order to facilitate their identification within this Report.

Principles

GRI Indicators

Millennium Development Goals

Principle 7: Businesses should support a precautionary approach to environmental challenges

EC2, EN3-12, EN18, EN26, EN30, SO5, PR1, PR3

Goal 7: Ensure environmental sustainability

Principle 8: Undertake initiatives to promote greater environmental responsibility

EC2, EN1-30, SO5, PR3-4

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

EN2, EN5-7, EN 10, EN 18, EN 26-27, EN30, SO5

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

SO2-6

Annex

183

SUSTAINABILITY REPORT 2013 Annex

Contact For further information, doubts or suggestion related to this Sustainability Report: • rsc@gonvarri.com • +34 913 719 1900 S/ Ombú 3, 6th floor 28045 Madrid Spain

184

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Annex

185

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