Commitment to the energy transition and decarbonization

Renewable energy is one of the strategic lines for reducing emissions. Objective in which Naturgy has assumed the commitment to be one of the key actors in the energy transition towards a circular and decarbonized economy model, in line with the purposes of the Paris Agreement and promote action for the climate and the protection of the biodiversity and, at the same time, promotes a just and inclusive transition by generating and improving employment opportunities.

The company is focused on being carbon neutral by 2050, reducing total scope 1, 2, and 3 emissions. And, since 2017, the energy multinational has reduced its direct greenhouse gas emissions by 39% , 36% CO2 intensity in electricity generation and 39% water consumption. Furthermore, in 2023, 37% of its installed power was renewable.

Objective: grow in renewable energy

Aspiring to be a key actor in the energy transition implies making a series of decisions, making a long-term plan and executing it. Along these lines, the Group's Strategic Plan includes reaching a percentage of installed renewable power in the generation mix of 48% by 2025, and already in 2023 it allocated 90% of the investment executed to energy transition projects, with 1,730 million focused in renewable energy generation.

Globally, the Strategic Plan provides for the execution of investments in renewable energy, specifically in solar photovoltaic, onshore wind and storage. But also the development of innovation projects for distributed generation, renewable biogas and hydrogen, as well as sustainable mobility. Together, this battery of projects will reduce the company's carbon footprint in its three scopes.

Currently, the installed capacity of renewable generation reaches almost 6.5 GW in operation, -3.3 GW of wind generation, 2.2 GW of hydroelectric generation and 1 GW of photovoltaic -, and the forecast is to end the year 2024 with around 8 GW of operational installed capacity, to which should be added a series of projects in development of almost 20 GW, mainly in Spain, Australia and the US, countries in which it already has a portfolio of 195 projects. 54% of the renewable energy that Naturgy produced in 2023 worldwide was wind; about 10% was solar, and 36% was hydraulic.

On the other hand, in the field of renewable gases, Naturgy manages a total of 70 projects in Spain, at different points of development, focused on biomethane and hydrogen.

Realities and projects in Spain

In the case of Spain, with 30 wind farms and photovoltaic plants under construction, the strategy focuses on continuing to grow in renewable energy, wind and solar, and developing innovative biomethane and green hydrogen projects.

One of the projects destined to be part of this growth objective in clean energy generation is the Campo de Arañuelo plant, in Cáceres. Its construction has already begun, it will be the company's largest photovoltaic plant in Spain and it is expected to come into operation in 2026.

The figures generated by a project of these characteristics are as large as it itself. The technicians: 300 MW of peak power and an annual production of around 515 GWh/year of clean energy. All others: once in operation, the energy produced will be equivalent to the electrical consumption of 157,100 homes; The facility will contribute to the reduction of more than 250,000 tons of CO2 emissions per year; The investment to develop it will be more than 150 million euros, it will extend over an area of ​​290 hectares in the municipalities of Aldeacenternera and Torrecillas de la Tiesa and during the works and operation phases, more than a thousand direct and indirect jobs will be created. indirect.

In addition to Campo de Arañuelo, the group is building three other photovoltaic plants in the municipality of Badajoz, with a joint installed power of 150 MW.

To them, and also in different phases of development, are added three other projects in Plasencia and one more in Castuera, in the provinces of Cáceres and Badajoz, respectively.

Sustainability

With its sights set on achieving climate neutrality by 2050, the company includes a series of objectives in its Sustainability Plan. Its investments in this sense already focus today on sustainable activities, such as those already mentioned, along with the protection of biodiversity, which suffers the impact of climate change, and avoiding the risk of net loss of natural capital as a strategic priority.

The Global Environmental Policy is applied in all countries where the company operates and, together with the Corporate Responsibility Policy, promotes the efficient use of natural and energy resources, the minimization of environmental impact, the promotion of innovation and the use of the best technologies and processes available.

Compensation2

Beyond the legal requirements set by the European Emissions Trading Directive, Naturgy follows its own initiatives to compensate them. Of these, COmpensa2 stands out, created in 2014, with which in 2023 they offset more than 15,900 tons of CO2 equivalent, produced in different work centers of the group and for the company trips of their employees.

Efforts in social, environmental and good governance matters that the market values ​​positively, as indicated by the Ecovadis gold medal, which places Naturgy among the companies best evaluated by this rating platform, and the uninterrupted presence for 20 years in the international FTS4Good index, which evaluates large companies in ESG areas.