Maximum respect and promotion of human rights

We have a public commitment to respecting and promoting human rights in the development of our activities and carry out annual due diligence processes to ensure this.

We maintain a consistently low level of risk in this area. To date, we have not breached any human rights, and therefore, no remediation action has been necessary. To ensure continuous improvement in this area, we assess our human rights risks annually and update the internal regulations governing this mechanism.

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Infographic Elements of Redeia's Human Rights Management Model

 

Our Management Model

We have a Human Rights Management Model approved by the Sustainability Steering Committee, which structures and systematises the company's actions to protect and respect human rights, as well as to remediate, in this field, any risks that may be originated by the company.

The four elements of the Model

The Model follows the United Nations (UN) Guiding Principles on Business and Human Rights, which are developed in four elements:


Commitment

We are dedicated to upholding human rights in all territories and countries where we operate. The formal integration of the Ten Principles of respect for human rights, approved by the Board of Directors of Redeia in 2022, into Redeia’s corporate culture further solidifies their Commitment to promoting and respecting human rights. These Principles can be found in Redeia's Sustainability Policy and in its Code of Conduct and Ethics.

These principles, which we evaluate once a year, have been developed taking into account internationally recognised traditional and emerging human rights, the sectors in which we operate, and the grievance mechanisms accessible to all stakeholders. This periodic analysis allows us to stay abreast of and identify any new risks arising from day-to-day activities or changes in the company's scope.

Thus, due to the sectors and territories in which we currently operate, our most significant human rights risks are associated with forced and child labour, human trafficking, freedom of association and collective bargaining, equal pay, discrimination, health and safety, decent work, privacy and data protection, identity of indigenous peoples and their economic, social, and cultural rights, property rights, a healthy natural environment, and ethical management.

We also work with stakeholders who may be affected, with special attention to vulnerable groups, such as women, children, indigenous populations, migrant workers, third-party employees, local communities, people with disabilities, the LGBTI population, and ethnic minorities. Our scope also includes employees, landowners, and, of course, society as a whole.

In order to extend this behaviour throughout the supply chain, the Supplier Code of Conduct establishes the duty of our suppliers to respect human rights.

Due diligence

Since 2013, we have been conducting annual due diligence analyses covering all Redeia’s companies (including the companies ARGO and TEN) to identify, evaluate, remedy, mitigate, and prevent potential risks or impacts in terms of human rights arising from our direct activity (such as own operations, new business relations and other activities related to the business) and indirect activity (such as value chain).

Our internal guidelines, known as the "Human rights due diligence Guide for own operations”, outline the three stages of this procedure:

  • Determination of potential and actual impacts: based on human rights and rights holders included in our commitment, we identify, prioritise, and assess potential and actual adverse impacts through a bespoke method based on the probability of occurrence of the impact and its severity. We also analyse our policies, commitments, and control mechanisms to reduce these risks, ensure respect for human rights, and remedy any violations. Finally, we obtain the Human Rights Risk Map, which we update on an annual basis.
  • Implementation of measures for prevention, mitigation, and remediation of risks: we integrate the conclusions drawn from the Human Rights Risk Map into the company's functions and procedures and propose and implement prevention, mitigation and/or remediation measures with specific improvement goals. If any violations are detected, we repair the damage caused and guarantee the victims' access to justice.
  • Follow-up on the implemented measures: we evaluate the performance of the measures based on previously defined qualitative and quantitative indicators at least every twelve months. Should the results not be as desired and/or the damage persists, we will review the implemented measures and consult and collaborate with employees and the parties affected to define new solutions.

The result of the due diligence process has shown that, to date, we maintain a low level of risk of human rights violations and that our activity has not breached the human rights of any stakeholder group.

It is necessary to point out that, although Peru has indigenous populations, there are no indigenous communities or settlements in the direct area of influence of our activities, and, therefore, there is no impact on this population group. Additionally, as derived from our Commitment, we undertake to respect the freedom and rights of ethnic minorities and indigenous populations.

Furthermore, we extend our commitment to integrity and human rights to those third parties with whom we intend to maintain any relationship and apply counterparty due diligence measures in accordance with the related risk. This process is carried out through the "Third-Party Due Diligence and Human Rights Guidelines”, which involve corporate operations, business partners, external agents, administrators, the management team, collaborating entities in the social environment, title holders and landowners, suppliers, and customers.

Before formalising any relationship with them, we collect information on their integrity and human rights management, focusing on employees, vulnerable groups, landowners, and society as a whole. To this end, we establish due diligence measures that we apply accordingly to counterparty risks and the features of the relationship they intend to establish.

To ensure continuous improvement in the area of due diligence, we carry out annual reviews of the internal regulations governing these two mechanisms.

Grievance mechanisms

Redeia has a Whistle-blowing and Compliance Channel, accessible to all its stakeholders, as a formal mechanism for enquiries and grievances regarding human rights.

If you need to share your concerns regarding any matter in the area of human rights, you can use the DÍGAME Service or the ASA Channel (Procurement Support and Helpdesk) for suppliers. Additionally, we promote and maintain a permanent relationship with the local areas where our facilities are located.

For the proper management of enquiries about possible human rights violations, employees managing these channels receive regular training.

Communication

Every year we publish the results of the human rights due diligence process through the Annual Sustainability Report, including identified potential and actual impacts as well as the measures taken and their outcomes. Furthermore, we publish an annual Report on the Management of the Code of Ethics, which includes an analysis of the possible grievances received in this field.

Periodically, we drive internal and external communication and awareness-raising initiatives aimed at employees and company suppliers.

2023, a year of progress that positions us back at the forefront of human right

Human rights impacts are dynamic and require constant surveillance. Therefore, we update the results of our human rights procedure on an annually basis.

In 2023, we reviewed the Human Rights Risk Map, concluding that Redeia's activity has not had an impact on new groups. Besides, our analysis revealed that there has been no increase in the effects on identified human rights, which are susceptible to being affected by sector and regions.

As we do every year, we update the prioritisation and assessment of potential and actual adverse impacts through a bespoke method based on the probability of occurrence of the impact and its severity. As a result of this analysis, it has been shown that in 2023 there has been no violation of any human right in Redeia (including third parties and investee companies).

We have integrated the conclusions drawn from this analysis of the Human Rights Risk Map into the company's functions and procedures and have implemented the appropriate risk prevention and mitigation actions where a risk has been identified. Likewise, as no violation of any human right has occurred it has not been necessary to carry out any remediation action.

We have reviewed that all identified risks are covered by internal procedures, with at least a high level of protection (risk covered by a specific company-level strategy, plan, or initiative), so that their probability of occurrence or the severity of their impact is very low.

From all due diligence analyses conducted in 2023, it can be concluded that no no-compliance with the UN Guidelines on Business and Human Rights, the ILO Declaration or the OECD Guidelines for Multinational Enterprises involving affected communities has been identified, nor any human rights violations, either in Redeia's own operations or in its relations with third parties.

During 2023, mitigation and prevention actions were carried out for those specific risks with a higher probability of occurrence, although all of them remain within margins classified as "improbable". They were mostly related to working conditions and, therefore, they apply to all Redeia employees in all geographical areas. In the end, all operational sites are included in the mitigation and remediation planning. These were:

  • Digital disconection: after having identified this risk, Redeia has been working on several actions to mitigate it.
    • Digital Disconnection Protocol, which defines the modalities for exercising this right and the training and awareness-raising actions to be carried out on the reasonable use of technological tools.
    • Launched in 2021, during 2023, in addition to further developing the Protocol, a communication plan has been launched to raise awareness of the importance of digital disconnection, and measures are being deployed to improve health and quality, with advice to employees on how to effectively implement digital disconnection.
  • Excessive working hours: as in previous years, this risk was also determined to have a medium probability of occurrence. To mitigate it, the company has developed some measures:
    • Voluntary hybrid work: with an adherence rate of 96%, remote work is allowed for around 47% of the annual working days, with the option of working from up to two different locations (first and second homes).
  • Psychosocial risks stemming from excessive workload, stress, lack of motivation, or a negative work environment, among other aspects, were also identified as potential risks. To mitigate this risk, Redeia developed several projects such as:
    • Emotion: launched in 2022 and developed along 2023, this project aims to incorporate emotional management into occupational risk prevention in those activities with the greatest risk. This project is deployed in three areas:
      • Inclusion of emotional perception in safety talks prior to the start of works.
      • Training leaders in emotional management.
      • Application in the prevention of occupational risk and the analysis of the emotional profiles of each participating group and the determination of their safety competencies through a methodology that relates personality and claim rates.
    • Health surveillance programs: applied according to job positions and therefore to the occupational risks to which people are exposed, the health of people goes beyond the purely occupational, and extends the scope to other health parameters by performing 1,351 health examinations (63.58% of the workforce).
    • Consultations on healthy nutrition, physical fitness assessment, physical activity promotion, prostate cancer prevention, physiotherapy consultation or flu vaccination, among others.

You can find more information about these and other measures in the Healthy Workplace Report 2023.

Redeia has developed a follow-up system that analyses the success of potential impact of mitigation and prevention measures and identifies whether they have succeeded in preventing or mitigating their occurrence.

Similarly to human rights, mitigation measures must also be constantly monitored to assess their effectiveness. In this sense, the probability of occurrence of these events with Redeia employees has been reassessed to see if these actions have worked.

  • In the case of psychosocial risks, the probability of occurrence has decreased by 25% compared to the assessment in 2022, while the perception of excessive working hours has decreased by more than 10%.
  • Moreover, digital disconnection measures have decreased the probability of occurrence of this risk by 9%.

To date, no remediation action has been necessary because there has been no violation of any human right in Redeia.

However, Redeia is aware that human rights risks are dynamic, so it continues to review them periodically to ensure that they do not materialise.