1

Energy transition and low-carbon development

Prioritization of investments in projects for generation using renewable and non-conventional renewable energy sources, and the development of strategies and initiatives that contribute to accelerating energy transition and low carbon development.

2

Shared Prosperity

Building conditions of well-being, progress and economic development in the communities of GEB and its subsidiaries’ areas of operations through the operations, infrastructure and services provided and the social investment programs implemented.

3

Environmental Performance

Define and implement strategies to protect biodiversity and prevent, mitigate and correct and/or offset environmental impacts caused by the activities of GEB and its subsidiaries. Additionally, it includes the efficient and responsible use of materials and natural resources, and managing energy, water, waste and air quality with a circular focus, framed in the context of the Group's activities.

4

Innovation and digital transformation

Digital transformation and innovation management, including the implementation of new technologies to create or enhance the organization’s products, services or processes.

5

Economic Performance

Economic performance, financial stability and sustainable growth.

6

Operational excellence and service quality

Managing the operation and assets to ensure the availability, continuity and quality of service.

7

Risk Management

Integrated risk management, including processes to identify and assess risks, and to respond to emerging risks and crises (includes management of COVID-19).

8

Ethics and Transparency

Encourage integrity and ethical and transparent behavior in the organization to strengthen the trust of all stakeholders. Includes regulatory compliance with applicable law in the countries where the Group operates.

9

Climate Change

Identifying, assessing and managing risks and opportunities caused by climate change and implementing strategies that contribute to adaptation and mitigation.

10

Corporate Governance

Implementing mechanisms for decision-making that generate profitability, competitiveness, transparency, trust and sustainability for all the Group’s companies, through a robust Corporate governance.

11

Occupational safety, health and well-being

Managing employee and contractor safety and health, including prevention of injuries and illnesses caused by work conditions, as well as promoting the well-being of the employees.

12

Human resource management

Managing company employees, including attraction and retention of talent, and training and development processes.

13

Responsible supply chain management

Responsible supply chain management, relations and training of suppliers and contractors, including registration, categorization, assessment, selection and qualification of suppliers and contractors.

14

Customer experience

Managing customers with the purpose of ensuring their satisfaction and high levels of service.

15

Cybersecurity and information security

Proper management and handling of information security, prevention of cyber-attacks, privacy protection and confidentiality of stakeholder data.

16

Human Rights

Fulfillment of commitments and implementation of mechanisms to care for, prevent, mitigate and protect the Human Rights of GEB's stakeholders and value chain. Includes the management of diversity and inclusion.

17

Brand protection and reputation

Implementing activities geared to protect the brand value and managing risks to the reputation.

• Innovation and digital transformation serve as a key driver of GEB's corporate strategy, ensuring competitiveness, business continuity, and the discovery of new value sources aligned with our overarching purpose and evolving market trends. These elements enable the adoption of sound research, development, and innovation (R&D&I) practices, creating opportunities and mitigating risks.
• Innovation and digital transformation not only ensure operational efficiency but also contribute to process automation, the creation of new services and digital business models, minimization of environmental impacts, and adoption of technologies that facilitate energy access and sustainable resource use.
• Moreover, they enable more timely process development and facilitate the organization's adaptation to environmental changes, leading to cost reduction, increased profitability, and long-term sustainability.

• The well-being and protection of the health and integrity of GEB employees and contractors are fundamental for achieving our corporate and sustainability goals. This is exemplified in our corporate value - "Life First"
• Superior performance in well-being, health, and workplace safety are critical determinants of our business success, talent retention, and attraction. These factors significantly influence our capacity for long-term value creation.
• Accidents at GEB workplaces or the lack of welfare conditions pose strategic risks. These could potentially lead to severe or fatal injuries, involve substantial economic costs such as fines, penalties, and lawsuits, and disrupt schedules and project progress.

• GEB operations support a fair energy transition by expanding clean energy to new territories.
• Our climate strategy is a crucial pillar of GEB's corporate strategy. This strategy directs our operations, affirming our role as a leader in the energy transition in Latin America. The strategy encompasses mitigation and adaptation measures, and enhances infrastructure resilience against extreme weather events or enduring climate changes.
• Effective management of climate change allows us to act promptly, identify and mitigate risks (both physical and transitional), and seize opportunities. A robust climate strategy facilitates access to capital and long-term value creation.
• Inadequate management of climate issues could result in operational, physical, financial, legal, market, and reputational risks.

Impact on costs

Impact on costs

Impact on risks

• GEB has devised an Innovation and Digital Transformation Strategy grounded on four pillars: open innovation, innovative culture, organizational capabilities, and project development. 
• Our strategy is underpinned by a policy and an Innovation Committee responsible for follow-up and guidance.
• The innovation management model primarily focuses on collaboration with local innovation ecosystems, contributing to their growth and maturation. GEB's collaborative efforts have been manifested through venture customer programs and participation in initiatives such as Incubatenergy labs.
• The strategy incorporates an energy transition component focusing on digitalization, decentralization, decarbonization, and electrification.

• GEB has established a strategy for cultural transformation in Occupational Health and Safety (OSH). This strategy promotes prevention and care for the integrity and lives of workers and contractor personnel. The strategy identifies, communicates and prevents risks, based on a vision of “Zero Accidents.”
• The OSH strategy is supported by an Occupational Safety and Health Management System (OSHMS). The system was designed in accordance with the international standard ISO 45001 and best international practices. It includes annual goals and indicators to measure the performance of all GEB subsidiaries.
• GEB and its subsidiaries carry out programs that encourage habits, healthy lifestyles, and the overall well-being of its employees.

• GEB's climate strategy is grounded on accurate identification and evaluation of risks and opportunities linked to climate change, robust governance, and the constant enhancement of emissions accounting and reporting processes.
• This strategy follows the Climate Change Policy, which includes commitments to climate change mitigation, adaptation, and energy transition.
• We are currently constructing GHG emission reduction pathways for GEB companies. These paths will be aligned with the 2030 NDC goals of the countries where GEB has operations.
• GEB identifies and implements adaptation measures to ensure infrastructure resilience to extreme weather events and permanent climate changes.
• Additionally, GEB gives priority to participation in projects associated with renewable energy sources. The transmission lines of our subsidiaries aim to integrate these sources into the energy matrix.

• Investment in innovation: COP 50 billion by 2025, and between COP 700 billion and COP 800 billion by 2030.

By 2025:

• Attain an investment intensity in R&D&I of at least 0.6% of the Business Group's consolidated (adjusted) operating income. Note: This does not include investments in digital transformation.

• Position the Business Group as one of the 30 most innovative organizations in Latin America and most open to collaboration with innovation ecosystems, achieving these ranks in the most relevant rankings of the countries in which it is present.

The objective is to realize the "Zero Accidents Vision," beginning with fatal accidents and achieving significant reductions in lost-time work accidents:

• “Zero fatal accidents” in the Group and its subsidiaries’ operations (for Group employees and contractors).
• In 2025, have a Lost Time Injury Frequency Rate (LTIFR) of one (1).

• Achieve emissions reductions at least equal to those established in the Nationally Determined Contributions (NDCs) of the countries in which GEB and its subsidiaries operate.

• Colombia: 51% by 2030.
• Peru: 30% by 2030.
• Brazil: 43% by 2030.
• Guatemala: 11.2% by 2030.

• Replace 100% of the gas relief systems in the flares.
• Achieve carbon neutrality in all GEB operations by 2050.

Topic relevance on external stakeholders

• The Group's external stakeholders anticipate its operations to leave a positive legacy in its spheres of influence, contributing to local development and narrowing societal disparities. Therefore, shared prosperity is a prerequisite for the successful development of projects and the expansion of the Group. 
• Local communities and stakeholders value and expect the Group's businesses to contribute towards social equity, a fair energy transition, local economy stimulation, business activities linkage, institutional and community strengthening, local labor employment, enterprise development, implementation of social impact projects, and environmental improvement.
• The actions of GEB that promote the creation of conditions for shared prosperity contribute to building opportunities for progress and establishing trust-based relationships with stakeholders founded on respect for life, human rights, environmental protection, and diversity.

Impact valuation methodology

The SROI (Social return on investments) methodology is used to measure the impact of the shared prosperity initiatives of Grupo Energía Bogotá.

Methodology:

• The "Social Return on Investment" (SROI) is by definition the comprehensive quantification of all the impacts that a project/program/business of any kind has.
• It shows how change is generated by measuring social, environmental and economic outcomes (outcomes), and uses monetary units to represent those outcomes. This allows the cost-benefit ratio to be calculated. For example, a 3:1 ratio indicates that an investment of USD 1 generates USD 3 of social value.
• In addition, this method integrates quantitative variables, qualitative data and financial information to provide a greater understanding of the impacts of a project and support decision-making.
• This methodology also considers costs, negative and positive results, and desired and unintended impacts, and estimates activities or aspects that are not generally valued, such as welfare, the promotion of art and culture.

SROI process:

1. Definition of objectives of the methodology, period of analysis, geographical context and projects/companies/programmes to be analysed.
2. Identification of all actors and sectors (stakeholders) that can be directly and indirectly impacted.
3. Mapping the impacts generated. This in order to identify investments made in each sector and stakeholder involved (inputs-inputs-investments) outputs (specific products or plans designed) and outcomes (investment results/program/business).  
4. A literature review to support the results found in order to qualify and quantify them.
5. Economic valuation of impacts identified through specific methodologies (benefit transfer, time series, propensity score matching, calculation and factor differences, etc.)
6. Qualitative and quantitative analysis and calculation of the cost-benefit ratio.

Impacts assessed:  

Positive impacts such as changes in household welfare, reduction in academic failure and dropout rates, differential salary, improvement in academic performance, increased marginal land productivity, perception of security, utility of beneficiaries, costs reduction, increase in human capital benefits, reductions in mortality and morbidity, among others, are assessed via the SROI (Social Return on Investment) methodology.

Impact valuation results

Output

Results

2022 Figures:

• Number of Beneficiaries:  119,613
• Investment in Shared Prosperity Initiatives: USD 19,723,334

The SROI allows us to assess the value generated to society for each dollar invested in social prosperity initiatives. In 2022, the Group generated a net social benefit of USD 23,450,915. This translates into an approximate SROI of 2.7.

Topic relevance on external stakeholders

• External stakeholders anticipate the Group's contribution to a just and inclusive energy transition by constructing a diversified and environmentally responsible energy matrix, enhancing the reliability of electricity systems, improving air quality, and reducing the carbon footprint.
• Taking into consideration the social realities, as well as challenges and opportunities in the territories where the Group operates, stakeholders expect its businesses to contribute to both national energy transition and local prosperity.
• The Group's operations contribute to well-being and development via the generation, transportation, and distribution of renewable energy and natural gas as a transition fuel, along with social equity, sustainable mobility, energy efficiency, and the gradual integration of hydrogen, among others. 

Impact valuation methodology

Through our own measurements and the Social Progress Index, calculated by Centrum University and Cálidda, we evaluate the impact of natural gas on well-being, health, the environment, and air quality.

The social progress index takes into account three dimensions: basic human needs, fundamentals of well-being and opportunities. 12 components are evaluated: nutrition and health, water and basic sanitation, housing, personal security, access to knowledge, access to information and communications, health and welfare, environmental sustainability, personal rights, personal freedom and choice, tolerance and inclusion, access to higher education. The results are presented on a scale from 0 to 100.

Impact valuation results

Output

Results

Figures from the Subsidiary Cálidda:

• 1,570,000 households connected to natural gas (+90% from lower and medium strata).
• +100,000 vehicles converted to natural gas.
• 816 industries and 1,930 businesses connected to natural gas.

The natural gas supplied by Cálidda in Peru contributes to several benefits:

• It saves 450,000 days of care in ICU beds and 1,619 million soles in hospital expenses.
• It helps avoid 4,552 premature deaths, 2,175 hospitalizations, and 1,764,391 cases of asthma.
• It prevents 85,506 million tons of CO2 (is equivalent to protecting 201,000 hectares of Amazon rainforest).
• It prevents 1,817,000 tonnes of pollutants (1,060,000 tonnes of SO₂, 597,000 tonnes of NO_X and 160,000 tonnes of PM2.5).
• It achieves a higher index of social progress in households with natural gas (54.7 vs. 40 in households that have no access to natural gas).