Sustainability Report Ingeteam 2018 - EN

SUSTAINABILITY REPORT
Taking care of what really matters
2018
2
Ingeteam 00 Index 04 GRI 201 Economic Performance
Sustainability report 01 Letter from the CEO 05 GRI 300 Environmental Disclosures
2018 02 Introduction 06 GRI 400 Social Disclosures
03 GRI 102 About Us 07 The 10 Principles of the Global Compact
• 01 Letter from the CEO – 03
• 02 Introduction – 05
• 03 GRI 102 About Us – 07
• 04 GRI 201 Economic Performance – 24
• 05 GRI 300 Environmental Disclosures – 29
• 06 GRI 400 Social Disclosures – 35
• 07 The 10 Principles of the Global Compact – 49

3
01
LETTER
FROM THE CEO
4
By the end of 2018, the 2016-2018 Strategic Plan had been completed. The increase in turnover over the three-year period of the plan was 47%. The conclusions drawn from the plan show that the Ingeteam
Group has a positive impact on the basic pillars of our corporate social responsibility strategy: individuals, environmental protection and support for the development of the local communities where we work.
 Over these three years we created 865 new jobs and invested €100 million in R&D, an area in » We consolidated a sustainability indicator reporting model based on the 2016 GRI standards.
which we employ close to 400 people.
» We aligned ourselves with the sustainable development goals in the 2030 agenda, having signed
 As a result of our industrial operations, there are now over 66 GW of renewable power generation up to the UN compact in 2012.
equipment in place around the world. This avoids the emission of more than 12 M Tnt of CO2 into
Moreover, our non-financial information has been checked in 2019 by an independent verification
the atmosphere, thus helping to decarbonise the planet.
service provider, as required under the Spanish Royal Decree on account auditing in regard to non-fi-
 As far as knock-on activities are concerned, we have helped to energise the local economy through nancial information and diversity.
over €500 million in orders placed with suppliers, including a wide range of services and the pro-
With a view to the immediate future, 2019 has seen us set our new 2019-2021 Strategic Plan in
duction of subassemblies designed by the Group and manufactured by third parties for subsequent
motion. This plan will unequivocally align the mission and vision of the Ingeteam Group with the de-
installation on the equipment and systems that we put together and deliver to our customers.
carbonisation of society and with energy transformation, in an increasingly electrified society.
At Ingeteam we take people and continuous improvement in management practices as the basis for
Mission: “To promote the global transition to clean energy through the development and application
furthering a corporate project with three levels of sustainability:
of cutting-edge technology in rotating electric machines, power electronics and automation and con-
 Financial, obliging us to attain sufficient yield to assure future growth. trol systems”.
 Environmental, obliging us to develop products, systems and services that help to foster environ- Vision: “Next generation, in a world that will get most of its energy needs from renewable sources,
mental friendliness. we will stand as a market leader in electric generation and power conversion, applying the necessary
R&D to the development of competitive and customized products, services and systems.
 Social, obliging us to create value for all our stakeholders, and in particular for our own people, by
offering opportunities for development in safe, healthy working environments. Our people are the foundation of our success. The continuous improvement of our management
strategies and close cooperation with our clients will make Ingeteam a sustainable corporation, with
These three years saw major development in terms of our performance as a responsible company.
profitable businesses that all stakeholders will benefit from”.
Mr. Adolfo Rebollo Gómez

Chief Executive Officer
5
02
INTRODUCTION
6
This is our 11th annual sustainability report. For the first time, this year our non-financial information has been checked by an independent verification
service provider in the form of consultancy firm Ernst & Young. Recent legislation (Act 11/2018 of 28 December on non-financial information, amending
the Code of Commerce, the recast wording of the Corporations Act approved by Royal Legislative Decree 1/2010 of 2 July and Act 22/2015 of 20 July on
Account Auditing as regards non-financial information and diversity) require the checking of non-financial information. Firms of a certain size are thus under
obligation to publish non-financial information in their consolidated management reports.
However, in this sustainability report we have continued to use standards for non-financial indicators that meet the directives of the European Commission
and the standards of the Global Reporting Initiative (GRI).
Ingeteam publishes this report to give its stakeholders a true, accurate picture of its performance as regards non-financial information in financial year 2018.
The Group conducts regular analyses to identify relevant aspects in regard to environmental, social and people-related issues, human rights, the struggle
against corruption and for ethical behaviour as relevant to the various stakeholders throughout its value chain. As we did last year, in this sustainability report
we have focused on the 17 Sustainable Development Goals of the 2030 Agenda, as subscribed to in 2015 by the UN General Assembly.
We take people and the continuous improvement of our management practices as our basis for making Ingeteam sustainable over time, and consider the
following areas as our basis for sustainability:
 Financial, obliging us to attain sufficient yield to assure future growth.
 Environmental, obliging us to develop products, systems and services that help to foster environmental friend-
liness.
 Social, obliging us to create value for all our stakeholders, and in particular for our own people, by offering
opportunities for development in safe, healthy working environments.
The contents of this document are as follows:

7
GRI 102. General Disclosures GRI 300. Environmental Disclosures
This section describes the company’s position in regard to the following: This section describes the impacts of the company’s operations on the
environment, specifically in regard to the following:
• Profile of the organisation
• Materials
• Structure
• Energy
• Ethics & Integrity
• Water
• Governance
• Biodiversity
• Stakeholder engagement
• Emissions
• Reporting practices
• Effluents & waste
GRI 200. Economic Disclosures
• Environmental compliance
This section examines the following areas:
• Environmental assessment of suppliers
• Economic performance
GRI 400. Social Disclosures
• Market presence
This last section examines the aspects of the company’s operations that
• Indirect economic impacts
directly affect its people, its suppliers and the communities in which it
• Procurement practices works:
• Anti-corruption • Employment
• Anti-competitive behaviour • Labour/management relations
• Occupational health & safety
• Training & education
• Diversity & equal opportunity
• Non-discrimination
• Human rights
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03
GRI 102
ABOUT US
9
PROFILE OF THE COMPANY ring and automation projects. It rounds out its range by offering operation
and maintenance services. Its operations are spread across three divi-
sions:
102-1 Name of the organisation
• Drives & Automation Division.
This report refers to the Ingeteam corporate group.
• Energy & Grids Division.
• Service Division.
102-2 Activities, brands, products & services
It makes products for the following sectors:
Ingeteam specialises in power and control electronics (inverters, fre-
quency converters, controllers & protective devices), generators, motors, • Wind Energy: doubly fed induction converters (DFIG) and full con-
pumps and electrical & automation engineering projects. It rounds out its verters with unit power ratings of up to 10 MW, energy management
range by offering operation and maintenance services. systems and control centres, substation automation, operating & main-
tenance (O&M) services for wind farms and electrical storage systems.
It produces products for the following sectors: wind, photovoltaic, hydrau-
lic and fossil fuel power generation, the metal and ore processing industry, • Hydroelectric power: complete automation of hydroelectric plants, vol-
shipping, railway traction systems and electrical grids including substa- tage & speed regulators and O&M services at power plants.
tions, always seeking the most efficient forms of generation, transporta-
• Photovoltaic Energy: string & central inverters including MV outputs up
tion, distribution and consumption of energy.
to 7500 KVA, storage & O&M services at PV plants.
In the wake of the approval of its 2016-2018 Strategic Plan, the Group
• Marine & ports: frequency converters, complete electrical thruster so-
was structured as a manufacturer and leading supplier of electrical and
lutions, automation systems, power management systems, on-board
electronic products, facilities and services.
electrical plants & silent vessels.
It is made up of the following divisions:
• Railway traction: on-board traction converters, train control and moni-
• Electric Machines & Pumps Division. toring systems (TCMS), control of auxiliary systems (HVAC, door con-
trol, etc.) and brake energy recovery systems.
• Drives & Automation Division.
• Transport & distribution of energy: substation automation, electrical
• Energy & Grids Division.
grid control & protection systems, power electronics applied to grids
• Service Division. and electrical storage systems.
Within the Ingeteam Group, member company Ingeteam Power Technolo- • Water: frequency converters and electrical engineering & automation.
gy (IPT) specialises in power and control electronics (inverters, frequency
• Electric mobility: Fast, domestic DC & AC charging systems for electric
converters, controllers and protective devices) and in electrical enginee-
vehicles.
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• Industry: handling of complete electrical projects, project manage- • Water: submersible pumps & drive motors for surface pumps, inclu-
ment, detail engineering, manufacturing & supply of electrical equip- ding pumping solutions with power ratings of up to 6.5 MW applied to
ment, electrical installations, automation of systems, commissioning, drinking water supplies, offshore rigs, mining, hydroelectric plants and
SAT training & maintenance. wastewater and clean water pumping stations.
IPT has also worked on major projects in the fields of mining, oil & gas, • Thermal power generation: generators coupled to steam or gas tur-
energy efficiency, thermal power generation & thermal solar power. bines and reciprocating motors. Combined heat & power, biomass,
waste-to-energy, combined cycle, internal combustion & geothermal
Ingeteam member company Indar specialises in the design and manu-
projects.
facture of rotating electrical machines and hydraulic machinery. Its ope-
rations are backed by the Electric Machines & Pumps Division, which Indar has also worked on major projects in industry, particularly iron &
provides solutions for the following sectors: steel and mining.
• Wind Energy: generators for wind turbines up to 9 MW, with over

16,000 units installed on wind turbines made by the world’s leading 102-3 Location of headquarters
OEMs in the sector. Double fed asynchronous generators, squirrel cage
units & permanent magnet synchronous generators. Ingeteam S.A. is based on the Bizkaia Technology Park in Zamudio, near
Bilbao.
• Hydroelectric power: hydroelectric generators with unit power ratings of
up to 80 MVA and voltages of up to 15 kV, with units totalling 7.5 GW ins-
talled all over the world. Reconditioning & repowering of large machinery 102-4 Location of operations
up to 200 MVA.
We have production plants in Spain, the USA, Mexico, Brazil, the Czech
• Marine & ports: electric motors and generators for thrusters, including Republic and India, and subsidiaries in France, Italy, Chile, Australia, Po-
solutions for electric main & auxiliary thrusters, on-board generator land, Romania, etc.
plants and silent vessels for the offshore industry (supply & heavy offs-
hore), ferries, cruise liners, dredges, tugs, research vessels, etc.
Ingeteam Annual report 2018 01 The Ingeteam group Ingeteam in the wo
ETEAM  3,912
GRI 201 employees in year end 2019
11
Ingeteam 00 Index 04 Economic Performance
HE INGETEAM
WORLD Sustainability report
2018
01 Letter from the CEO
02 Introduction
05
06 
GRI 300 Environmental Disclosures
3,912 employees in year end 2019
GRI 400 Social Disclosures
Sites in 22 countries 
IN THE WORLD 03 GRI 102 About Us 07 The 10 Principles of the Global Compact
Sites in 22 countries 
Europe
2,946 Employees
20 Sites Europe
2,946 Employees
20 Sites
th America
Employees
tes North America Asia
645 Employees 49 Employees
4 Sites 3 Sites Asia
49 Employees
3 Sites
uth America and Central America

3 Employees
tes South America and Central America
203 Employees Africa
6 Sites Oceania
65 Employees
Africa 4 Employees
2 Sites Oceania
1 Site
65 Employees
4 Employees
2 Sites
1 Site
erica South America and Africa Europe Asia Oceania

Central America • South Africa • Spain • India • Australia
North America • Brazil South America and • Morocco Africa • France Europe • Philippines Asia Oceania
• USA North America
• Chile South America and
Central America Africa
• South Africa • Italy Europe • Spain Asia • India Oceania
• Australia
• Mexico• USA • Honduras • Brazil Central America • Morocco• South Africa • Germany
• Spain • France • India • Philippines • Australia
• Mexico • Panama • Chile • Brazil • Morocco • Poland• France• Italy • Philippines
• Uruguay • Honduras • Chez Republic • Germany
• Chile • Italy
• Peru • Panama • Romania • Poland
• Honduras • Germany
• Uruguay • United Kingdom• Chez Republic
• Peru
• Panama • Poland• Romania
• Bulgaria
• Uruguay • Chez Republic
• United Kingdom
• Peru • Romania
• Bulgaria
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• United Kingdom
• Bulgaria
18 1
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102-5 Ownership and legal form 102-7 Scale of the organisation

Ingeteam, the holding company of the Group, is set up as a public limited The Group’s turnover in 2018 was 637,024 thousands of Euros (K€), with
company [Sociedad Anónima]. Its main shareholders are: more than 11% of that figure given over to R&D&i. The main financial
figures at the close of financial year 2018 are as follows:
Others • Sales: K€595,798
8.16% • Net equity: K€333,224
• Long-term debts: K€113,091
Treasury stock The Group’s worldwide turnover breaks down by countries/continents as

follows:
19.12%
• Spain: 23%
Shareholders • Rest of Europe: 23%
• America: 37%
• Middle East: 7%
Kartera 2, S.L.
• Asia: 10%
12.86%
And the final destinations of its products/services break down as follows:
Founding members • Spain: 18%
59.87% • Rest of the world: 82%
102-6 Market served 102-8 Information on employees and other workers

The Group created 291 new jobs in 2018, after creating 310 in 2017.
The member teams of the Ingeteam Group look to serve markets all over
This means more than 600 new jobs in two years, bringing the average
the world. The sectors and customers that we serve are listed in section
workforce up to around 4000.
102-2 above.
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Management & 102-9 Supply chain

R&D
administration
The supply chain is specific to each business, except for a few common
399
366 areas that can be managed at corporate level, mainly in services: insuran-
ce, travel, company vehicles, etc.
Sales
Business units which work in production establish supply chains mainly
3,912
263 on a local basis, backed up by many years of experience in supplier as-
sessment.
Average workforce 102-10 Significant changes to the organisation and its

supply chain
Operations PERSONNEL 2018 saw the commencement of manufacturing at our facilities in India
(which opened in 2017) and we invested in a new power and control elec-
2,884
tronics plant, which is expected to come on line in the second quarter of
next year. We also shut down our subsidiary in China and the associated
companies Bascotecnia Steel and Quantum.
102-11 Precautionary principle or approach

The jobs involved are highly-skilled. The average age of the workforce is
less than 38, and average tenure at the Group is 8.36 years. 100 of those Ingeteam’s operations are based on highly technological products and
employees make up the management bodies. services. R&D is essential to the development of the company, and around
5% of its annual turnover is given over to it.
More than two thirds of our workforce (73%) are employed under indefi-
nite contracts. Every time Ingeteam starts a project for the development of a new product
or service, the principle of precaution is applied to offset any negative
We are committed to providing a good work-life balance. This is evidenced
effects that the products or service in question may have on the environ-
by the facilities that we offer in terms of reduced working hours on re-
ment and/or on people.
quest. In financial year 2018, 168 people, i.e. almost 5% of our workforce,
were on short-time and at least 1522 (39%) were on flexitime.
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102-12 External initiatives STRATEGY

Ingeteam has voluntarily signed up to the UN Global Compact and com-
plies with local laws on financial, environmental and social issues. 102-14 Statement from senior decision-maker
We apply our management policies in the usual areas: human resources,
102-13 Membership of associations safety/security and occupational risk prevention, environmental protec-
tion, support for the development of local communities, transparency,
To help carry out our activities in various technological ecosystems, the
communication and collaboration with all our stakeholders.
group at corporate level is a member of the following:
At Ingeteam we take people and the continuous improvement of our ma-
• Energy Cluster
nagement practices as our basis for making the Group sustainable over
• Basque Maritime Forum time, and consider the following areas as our basis for sustainability:
• Innobasque
• Financial, obliging us to attain sufficient yield to assure future growth.
• Gaia
• Environmental, obliging us to develop products, systems and services
• Spanish Maritime Cluster that help to foster environmental friendliness.
• Mobility Cluster
• Social, obliging us to create value for all our stakeholders, and in parti-
• Exporters & Investors’ Club cular for our own people, by offering opportunities for development in
• Euskalit safe, healthy working environments.
• APD We remain strongly linked to the renewables market, which accounts for
over 70% of our turnover.
Group member companies also form part of sectoral associations such as
the following: But apart from this highly satisfactory situation, at Ingeteam we have sou-
ght to move forward in our development as a responsible company by
• UNEF
transitioning to a sustainability indicator reporting model based on the
• AEDIVE 2016 consolidated set of GRI standards as we seek to systematically factor
• EWEA corporate social responsibility into the Group’s general strategy.
• AWEA
• SEIA
• Siderex
• Hydraulic Institute
15
102-15 Key impacts, risks and opportunities In industry, 2018 sought an increase in worldwide demand for steel and
consequently of output to 1,820 Mt, 4.6% more than in 2017.
By means of a process of reflection, we have identified a number of risks
and opportunities concerned with our main products and services, mar-
kets and customers and our management capabilities. ETHICS & INTEGRITY
In regard to products and services, Ingeteam has a strong impact on the
renewable energy sector through its own technology.
102-16 Values, principles, standards and norms of
The future of the wind energy sector looks promising, with positive pros- behaviour
pects for growth over the next 10 years. The turning point has come, and
The conclusions of the latest strategic reflection process conducted by
the transition towards growth seems to be firmly established.
Ingeteam included a list of values that remain consistent with those which
In photovoltaic solar power the size of PV equipment and demand for it emerged from previous strategic reflections.
both continue to increase.
They include the following:
In hydroelectric power we have a solid foundation in what is currently a
• Ingeteam is what we are, what we do and what we feel.
sector subject to fluctuations.
• We respect people and act with integrity.
1,270,000 electric vehicles were sold around the world in 2018, 68%
more than in 2017. They now account for 1.8% of vehicle sales worldwide. • We cooperate and work as a team responsibly and independently.
In the railway traction market the prospects indicate annual growth figures • We are optimistic, self-critical and proactive.
of 2.7% up to 2023, with increasing accessibility to all market segments.
• We seek to be efficient in all that we do.
In energy transmission and distribution the concept of smart grids is be-
coming firmly established. • We work with rigour and professionalism.
The prospects in the short and medium-term are for a need to speed up • Our external and internal customers are our raison d’être.
development of global energy grids to meet increased demand, improve
quality of service and enhance efficiency. Expectations for investment in These values are reflected in numerous activities which have also been
electricity grids are for K$320,000 per annum from 2015 to 2040. 70% analysed and discussed. In any event, they are all covered by the Group’s
of that investment is expected to go to emerging countries and only 30% Code of Conduct, which is its highest ranking set of rules in this regard.
to OECD markets.
16
102-17 Mechanisms for advice and concerns about ethics It is appointed by the Board of Directors of the Ingeteam Group, to which
it is answerable and required to report regularly. The Chair and Secretary
Ingeteam has a Code of Conduct which was first approved in 2012. It sets
are appointed by the Board of Directors from among its members.
guidelines for the conduct of members of the Board of Directors, the ma-
nagement committees and the workforces of Group member companies. It is made up of:
It reinforces the ethical culture of the Group in the following areas: • The Chair: Corporate Head of International Development & Internal
• Values and principles in Ingeteam Group business relationships. Operations
• Indications of types of behaviour which are not tolerated, are inappro- Ordinary members:
priate or may even be considered as criminal in business dealings. • Corporate Head of HR
• A reminder of the duty to report behaviour that contravenes the code via • Corporate Head of IT & Digitisation
the reporting channel set up. • Head of Legal Services
These guidelines on conduct are also expected to be shared by the • Corporate Head of Internal Operations
various parties with which the Ingeteam Group deals, i.e. customers, The Board of Directors has given the committee independent powers of
suppliers, shareholders, associates and public/private sector organisa- initiative and control within the Ingeteam Group to assure compliance with
tions. current regulations, particularly on matters of criminal law, and with the
The Code of Conduct is based on the Mission, Vision and Values of the Code of Conduct on the part of all Group personnel. This covers the ac-
Group, as set by the Board of Directors, and on a commitment to reinfor- tions of companies, business units, production units and their individual
ce a culture of ethics at the organisation and ensure that its employees specialists.
exercise due diligence and proper compliance with regulations in all the It also manages the Reporting Channel and guarantees full confidentiality
territories where the Group operates. for reports by whistle-blowers concerning potential breaches of the Code
To that end, the Board of Directors has set up a structure and model at the of Conduct or of applicable regulations. Such irregularities are investigated
Ingeteam Group to prevent, detect and investigate breaches of the Code through impartial proceedings tailored to the circumstances of each case.
of Conduct and of applicable regulations via the Compliance and Conduct The committee has its own regulations which set out its functions and
Committee, so that improvements can also be suggested. responsibilities.
The Compliance and Conduct Committee is the Group body that mo- The Ingeteam Group set up Reporting Channel in 2012 for notifying any
nitors the distribution, knowledge of and compliance with the Code of actions by its employees, suppliers or third parties with which the Group
Conduct and the culture of ethics within the Group. maintains work-related, commercial or direct professional links.
17
GOVERNANCE 102-20 Executive-level responsibility for economic,

environmental and social topics
102-18 Governance structure Within the organisation structure of Ingeteam, executive-level responsi-
bility for economic, environmental and social topics is distributed among
The governance structure of the Ingeteam Group comprises the following
the Corporate Management staff. That staff breaks down into two groups:
bodies:
• Business Corporate Management, whose members take care of the
Ingeteam S.A. Shareholders Meeting executive side of industrial and production operations.
• Functional Corporate Management, which brings together functions co-

Ingeteam S.A. Board of Directors vering financial administration, legal issues, people-management topics
and communication.
• The gathering & analysis of information and its presentation to the highest
Executive Team Corporate Business Management
governance body are coordinated by the Corporate Head of Marketing.
Boards of the Business Units 102-21 Consulting stakeholders on economic,

environmental & social topics
Board of Directors of the Companies The CEO delegates persons from his/her management area to consult with
and check information on stakeholders concerning economic, environ-
mental and social topics.
102-19 Delegating authority
The model for delegating authority is applicable to all the Group’s subsi-
diaries.
18
102-22 Composition of the highest governance body and its 102-24 Nominating & selecting the highest governance
committees body
The highest governance body of Ingeteam S.A. is its Board of Directors, Each Director provides a statement of potential conflicts of interest, and
which has set up an Appointments & Remuneration Committee. refrains from participating in or voting on matters that fall within the con-
flict area.
Ms. Teresa Madariaga Zubimendi. Chairwoman
Mr. Mikel Ruiz Madariaga. Voting member 102-25 Conflicts of interest

Mr. Victor Mendiguren Ayerdi. Voting member Each Director provides a statement of potential conflicts of interest, and
refrains from participating in or voting on matters that fall within the con-
Kartera 1, S.L. flict area.
Mr. Ander Gandiaga Osorio. Voting member
Mr. Alex Belaustegi Foronda. Voting member

102-26 Role of highest governance body in setting purpose,
values and strategy
Mr. Adolfo Rebollo Gómez. Voting member
The role of the Board is to approve the annual plans and strategic plans
Mr. Alberto Guerra San José. Secretary-non director proposed by the CEO.
102-23 Chair of the highest governance body 102-27 Collective knowledge of highest governance body
There is no corporate training or individual personnel training programme.
The current chair of the Board of Directors is Ms. Teresa Madariaga.
102-24 Nominating & selecting the highest governance 102-28 Evaluating the highest governance body’s
body performance
There is an annual evaluation by the General Meeting.
The members of the highest governance body are nominated by share-
holders and their selection is approved by the General Meeting of Share-
holders.
19
102-29 Identifying and managing economic, environmental 102-34 Nature and total number of critical concerns
and social topics Information on critical concerns is not public knowledge and may not the-
The Group CEO submits impacts, significant risks and opportunities to the refore be disclosed here. The mechanism for tackling such concerns is
Board for its information and for decision-making. outlined in the previous point.
102-30 Effectiveness of risk management process 102-35 Remuneration policies
The CEO presents the most significant risks to the Board for its information To deal with remuneration policies for the highest governance body and
and for decision-making. the top executives of the Ingeteam Group, the Board of Directors of Inge-
team, S.A. has set up the Appointments & Remunerations Committee as
a standing committee with an informational and consultative remit. It has
102-31 Review of economic, environmental and social the power to provide information and advice & make proposals within its
topics area of action. This includes:
These topics are reviewed monthly. • Submitting proposals to the Board on remuneration policies for top
management at the Ingeteam Group, regularly reviewing same and, if
necessary, proposing that the Board change or update them.
102-32 Highest governance body’s role in sustainability
• Reporting to the Board the proposals put forward by the CEO on top
reporting
management contracts at the Ingeteam Group and on the remuneration
The CEO is responsible for approving the sustainability report drawn up structure and basic terms and conditions of those contracts.
by the Head of CSR.
• Regularly reviewing the general remuneration programmes of the work-
force of the Group to assess their suitability and outcomes.
102-33 Communicating critical concerns • Seeing that the company’s remuneration programmes are complied
Any critical concern is dealt with at the level of the Corporate Management with and reporting on documents to be approved by the Board.
of the Group. The CEO is directly aware of matters of importance with a The fixed part of management staff salaries is set by their superiors in
view to reporting them to the highest governance body. each case, with the relevant assessment from the HR area closest to their
area of responsibility and of the relevant functional managers.
20
For each individual there is an annual review that takes into account the • Indicators for financial results at the different levels of the organisation
extent to which targets have been met, the trend in performance at in- at which each management staff member operates, indicators for func-
dividual, team and functional area levels, the financial and strategic cir- tional area targets and project-related indicators.
cumstances of the organisation where he/she works, his/her sector and
The policy also provides a model for calculating benchmarks for indicators
location and the guidelines on remuneration policies applicable to each
as a whole and for the thresholds and limits to be used for that purpose.
organisational unit and to the organisation as a whole.
The policy for the group as a whole establishes that management staff
salaries include a variable part in order to link their monetary remunera- 102-36 Process for determining remuneration
tion with the trends in various Group, company and business-unit level This process is explained in the previous point. It does not involve specia-
performance indicators and with the meeting of individual and collective list external consultants.
targets (at team, department & functional area levels).
Another goal is to promote the strategy of the organisation and to encoura-

102-37 Stakeholders’ involvement in remuneration
ge competitiveness and commitment on the part of employees.
The opinion of stakeholders is not sought in regard to setting remunera-
Compensation for the termination or discharging of an employment contract
tion.
with the organisation (via dismissal, retirement or other causes) is based on
strict compliance with any agreements reached between the parties and,
in the absence of such agreements, with current legislation in regard to 102-38 Annual total compensation ratio
grounds for the termination of employment relationships.
This information is not available.
The policy on variable remuneration sets out the general characteristics of
the targets that can be applied at different levels in structuring and calcu-
lating such remuneration, and establishes different percentage brackets 102-39 Percentage increase in annual total compensation
for the items that may be included: rate
• Objective variable remuneration based on fulfilment of measurable tar- This information is not available.
gets based on indicators, as compared to subjective variable remunera-
tion based on performance assessment.
21
STAKEHOLDER ENGAGEMENT 102-42 Identifying and selecting stakeholders

In the course of its strategic reflection process, the Ingeteam Group has
102-40 List of stakeholder groups identified the main stakeholders potentially impacted by its operations.
Ingeteam’s stakeholders are the following:

102-43 Approach to stakeholder engagement
• Strategic customers
As the group carries out its operations they are checked with stakeholders,
• Other customers
who provide feedback which reaches the CEO via the channels described.
• End customers
• People 102-44 Key topics & concerns raised

• Shareholders The key topics affecting the Ingeteam Group are set out in the strategic re-
flection process. In general they should fit specifically into the frameworks
• Suppliers
of our stakeholders: employees, customers, suppliers, society, etc. All our
• Financial institutions operations are therefore focused on making them fit:
• Knowledge centres • We adapt to the continual technological development of our customers.
• Public administrations • We make use of advances in the technologies applied to our products
which are supplied by third parties.
• Community & surrounding area
• We seek to enrich the technical capabilities and working methods of our
• Regulatory bodies
employees and at the same time to provide more and more for them to
• Sectoral associations achieve a good work/life balance.
• Competitors • We cater for the needs of the social settings in which we operate, using
local personnel as far as possible.
102-41 Collective bargaining agreements • We seek to help improve the environment by publicising our clean, ef-
ficient technical solutions.
Most employees are covered by collective bargaining agreements at secto-
ral, national or provincial level or by workplace-level agreements, statutory
or otherwise.
22
REPORTING PRACTICES • INGETEAM Power Technology India Private Co. Ltd.
• INGETEAM Australia (PTY) Ltd.

102-45 Entities included in the consolidated financial • INGETEAM Panamá, S.A.
statements
• INGETEAM Service S.r.l.
The entities in question are listed below:
• INGETEAM Philippines INC
• INGETEAM, S.A.
• INGETEAM Uruguay, S.A.
• INGETEAM Power Conversion, S.L.U.
• INGETEAM UK, LTD.
• INGETEAM Power Technology, S.A.
• INGETEAM R&D Europe, S. L.
• INDAR Electric, S.L.
• INGETEAM Morocco, S.A.R.L.A.U.
• INDAR Máquinas Hidráulicas, S.L.
• INGETEAM Honduras, S.A. de C.V.
• INGETEAM México, S.A. de C.V.
• INGETEAM Bulgaria, E.A.D.
• INGETEAM, Inc.
• INGETEAM Perú, S.A.C.
• INGETEAM, S.R.L.
• INGETEAM, A.S. 102-46 Defining report content and topic boundaries

• INGETEAM, GmbH The four relevant principles are applied in defining the content of this
• INGETEAM, Ltda. report:
• INDAR América, S.A. de C.V. Stakeholder inclusiveness
• INGETEAM, S.A.S. The stakeholder groups involved and the way in which the related approa-
ches and impacts are taken into account are outlined in points 40-44
• INGETEAM, Spzoo above.
• INGETEAM, SpA Sustainability
• INGETEAM (PTY), Ltd The whole document seeks to present the performance of the organisation
in topics which in any way affect the sustainability of operations in our
23
working environments. The sustainability working group has discussed 102-48 Restatements of information
full information on sustainability in regard to the environment, people and
This report does not consider any restatements of information from pre-
society.
vious reports.
Materiality
Ingeteam works in a wide variety of industrial settings, and the material 102-49 Changes in reporting
topics dealt with are equally varied. This report presents those which we
consider most relevant in terms of their effects on sustainability. There have been no changes in reporting compared to the previous year.
Reporting criteria continue to be based on the consolidated set of GRI
Exhaustiveness standards for 2016.
The working group on sustainability considers the level of exhaustiveness
of the information presented here to be sufficient. It is the level expected
102-50 Reporting period
by members of the corporate management and by the highest governance
body. This report covers financial year 2018.
The application of the four principles refers to the following parameters:
• The list of material topics dealt with in the report. 102-51 Date of most recent report
• Coverage, which in our case is global given how widely spread our The last report was published in June 2018.
plants are and in view of our commercial and industrial operations.
• Time. Information is gathered as from February in the year following the 102-52 Reporting cycle
year analysed. By then, full information on the period covered by the
Annual.
report is available.
102-53 Contact point for questions regarding the report

102-47 List of material topics
Any questions regarding the report should be addressed to the Corporate
The list of material topics is provided in the relevant annex, directly linked
Marketing Department at Ingeteam, which coordinates its preparation.
to the indicators selected.
24
102-54 Claims of reporting

This report was drawn up in line with GRI standards: Essential option.
102-55 GRI content index

This index is at the start of the document.
102-56 External assurance

This sustainability report has not undergone external verification. Howe-
ver, many of the data shown here also appear in the Report on Non-Finan-
cial Information. For the first time, this year our non-financial information
has been checked by an independent verification service provider in the
form of consultancy firm Ernst & Young. Recent legislation (Act 11/2018
of 28 December on non-financial information, amending the Code of
Commerce, the recast wording of the Corporations Act approved by Royal
Legislative Decree 1/2010 of 2 July and Act 22/2015 of 20 July on Ac-
count Auditing as regards non-financial information and diversity) refers to
the checking of non-financial information, which this legislation makes it
compulsory for businesses of a certain size to publish in their consolidated
management reports.
25
04
GRI 201
ECONOMIC
PERFORMANCE
26
The economic performance of Ingeteam during the financial year eviden- 201-3 Defined benefit plan obligations and other
ces that its industrial operations are correctly positioned in terms of the retirement plans
development of renewables. This is an unstoppable global trend.
The Ingeteam Group does not make specific pension plan
This helps Ingeteam to set up in many different geographical and social contributions for its employees. Coverage is provided via offi-
settings which clearly benefit from its arrival in terms of making the most cial contributions to the Social Security system, as per the
of local personnel and of financial benefits for the communities in which legislation applicable in each country at each relevant time.
we operate as a result of our activities. All these operations are conduc-
ted cleanly, with fair competition and keeping well away from any corrupt
practices. 201-4 Financial assistance received from government
In financial year 2018 the Ingeteam Group received
ECONOMIC PERFORMANCE €5,154,256 in aid for research programmes from various
institutions.
201-1 Direct economic value generated and distributed

MARKET PRESENCE
Not available info.
202-1 Ratios of standard entry-level wage by gender

201-2 Financial implications and other risks and
compared to local minimum wage
opportunities due to climate change
At Ingeteam wages depend on training, expe-
Climate change is having a direct effect on how the use of rience and performance. The gender of wor-
renewable energy sources is seen. The Kyoto agreements kers is not taken into account. Since 2012,
some years ago, and more recently those of Paris and Ma- chapter 2 of our Code of Conduct has read
rrakesh, secured binding commitments from most indus- as follows:
trialised countries to increase the proportion of energy generation assets
using renewables. This is beneficial for the operations of Ingeteam, which “The wages received by employees will be determined by the functions
are strongly based on the design and manufacture of systems applied to that they perform, with the applicable bargaining agreements always be-
ing observed”.
energy generation.
27
At Ingeteam we do all that we can to eliminate any gender gap and su- 202-2 Proportion of senior management hired from the
pport equal opportunities in recruitment, in opportunities for promotion at local community
work and in drawing up remuneration policies.
95% of the members of the organisation’s management
An analysis was conducted in 2018 to check for wage gaps at our wor- bodies were hired from the local community, taking “local
kplaces. community” to mean the country where each company
This analysis took gender, occupational category and geographical area headquarters is based.
into account and compared the wages of all the women at each workplace This is evidence of Ingeteam’s commitment to the communities where
with those of the men in each category, with the results being weighted we operate, in terms of strengthening the fabric of industry and providing
over the total number of employees. economic and social benefits.
“Remuneration” was deemed to include only wage items such as basic We also seek to strengthen human capital, in the belief that diversity helps
wage, bonuses, seniority payments, variable remuneration, etc. us to grow.
Gender wage equality was confirmed at all Ingeteam workplaces. This is
evidenced by the collective bargaining agreements in place, where wage
INDIRECT ECONOMIC IMPACTS
scales per category are the same for both genders.
All workplaces in Spain subject to nationwide regulations on equality plans

comply with the relevant requirements. Moreover, in 2019 a corporate 203-1 Infrastructure investments and services supported
equality plan is to be drawn up to detect areas for improvement at the Ingeteam’s operations do not include the development of infrastructures
Group in this regard and draw up action plans accordingly so as to narrow of any kind.
gaps and move closer to effective gender equality in each occupational
category.
203-2 Significant indirect economic impacts
The economic impact of Ingeteam on local communities is
evidenced in these main points:
28
• The creation of jobs and hiring of a local personnel at our production body and to the workforce in general. It is also published on the Group’s
plants. website.
• Contributions to the local economy in the form of taxes paid on our The Ingeteam Group has measures in place to prevent, detect and re-
operations. In 2018 Ingeteam paid taxes to the tune of €84,299,953. spond to corruption-related activities:
Corruption-prevention measures:
PROCUREMENT PRACTICES • The Code of Conduct sets clear guidelines concerning the prohibition of
gifts, donations, invitations, travel and other considerations for custom-
ers, suppliers and public employees.
204-1 Proportion of spending on local suppliers
In 2018 the figure was 45.17%. • If there is any doubt in the construal of those guidelines, the principle of
prudence is to be applied and gifts or invitations are to be turned down.
In any event, superiors and the Conduct Committee can be consulted.
• General terms and conditions for purchasing are in place and a code of
conduct for suppliers is being drawn up to get them to undertake to act
ANTI-CORRUPTION
ethically. Specific clauses are included.
• There are procedures for purchasing, assessment and approval of sup-

205-1 Operations assessed for risks related to corruption pliers and supplier audits.
There were no operations related to cases of corruption in • There is a policy on sponsorship and donations.
2018. In any event, such cases are identified in our Code of
Conduct, and potential circumstances are monitored by the Corruption-detection measures:
Compliance Committee. • Notification and publicising of the Reporting Channel.
• Regular reviews of risk areas.

205-2 Communication and training about anti-corruption
Corruption-response measures:
policies and procedures
• There is a procedure for responding to and investigating reports.
The Ingeteam Group Code of Conduct sets out our policy
for monitoring and detecting corruption. Copies of the Code • Compliance and Conduct Committee.
were distributed to all members of the highest governance
29
205-3 Confirmed incidents of corruption and actions taken

There were no cases of corruption related to the operations of the Inge-
team Group in 2018.
ANTI-COMPETITIVE BEHAVIOUR
206-1 Legal actions for anti-competitive behaviour, anti-

trust and monopoly practices
No legal actions were brought in 2018 in regard to anti-com-
petitive behaviour or monopoly practices related to the ope-
rations of the Ingeteam Group.
30
05
GR 300
ENVIRONMENTAL
DISCLOSURES
31
Most Ingeteam Group production plants handle environmental assess- The products manufactured by Ingeteam enable CO2 emissions into the
ment and certification procedures via ISO.14001: 2015. The auditing of atmosphere to be reduced by 9.5 t.
the environmental management system entails checks to ensure that it
It is worth highlighting that several Group member companies have made
has all the components needed to be an active system and that it works
improvements in areas related to the environment, such as:
properly.
• Lighting: switching to LED.
Each production unit has specialist personnel allocated to handle matters
of environmental risk prevention. Their numbers vary depending on the • Driving: talks on energy efficient driving
potential risk in each area of activity.
• Production: Installation of a trigger installers to turn off equipment at
As a group, Ingeteam’s risk of producing environmental pollution is low, night, positioning of equipment on test beds to reduce consumption
with the exception of certain manufacturing production units such as In- during testing, etc.
dar in Beasain, which makes electric generators and submersible pumps.
• Climate control: changes in temperature settings.
Its factory stands in a natural area and is closely monitored by the public
water authority URA, given that there is a risk of discharges into water • Environbank machine for recycling coffee capsules.
courses.
• Plastic bottle recycling campaign.
Given the operations carried out by Group companies, there are no sig-
nificant responsibilities, expenses, assets, provisions or contingencies of • Use of electric vehicles for company journeys.
an environmental nature in terms of equity, financial situation and results. • Solar panels at office facilities.
Moreover, the industrial operations of the Group’s member companies are
conducted with the utmost respect for the natural environments in which The Sustainable Development Goals (SDG) most closely related to our
they are based. operations in this regard are the following:
32
MATERIALS 301-3 Reclaimed products and their packaging materials

The main reclaimed products are pallets, boxes, drums and GRP.
301-1 Materials used by weight or volume
Reductions have been obtained in almost all indicators, in ENERGY
an effort to optimise consumption of materials.
302-1 Energy consumption within the organisation

Total energy consumption at the Group in-
Standards
creased on the previous year, due to increa-
301-1.a Paper consumption kg/person 7.10
sed output.
301-1.b Cardboard consumption kg/person 21.54
301-1.c Wood consumption kg/person 155.36
Standards
301-1.d Chemical consumption kg/person 295.13
kWh/
301-1.e Metal consumption kg/person 2,121.36 302-1.a Electricity consumption 4,607.46
person
301-1.f Plastic consumption kg/person 10.45
Natural gas consumption for kWh/
301-1.g Cable consumption kg/person 224.98 302-1.b 4,183.67
heating person
E/E equipment and ICT Fuel oil consumption for
301-1.h kg/person 11.29 kWh/
consumption 302-1.c occupancy heating, machinery 208.71
person
etc.
301-2 Recycled input materials used

The amount of recycled paper used is up on 2017, but the
amount of cardboard is down.
Standards
301-2.a Recycled paper purchased % 34.10
301-2.b Recycled cardboard purchased % 42.98
33
302-2 Energy consumption outside the organisation • Climate control: changes in temperature settings.
• Use of electric vehicles for company journeys.
• Installation of solar panels at office facilities.
Standards WATER
Energy consumption resulting kWh/ Water consumption continues to be reduced in the context
302-2.a from vehicle mobility for the person 1,130.46 of efforts to optimise the resources required for production.
company (except in-itinere) Across the whole Group, average consumption is 32 L per
Energy consumption resulting kWh/ person per day. This is a positive figure, given that we run
302-2.b from mobility with a private person 2,012.41 several production plants.
vehicle (in-itinere)
kWh/ Standards
302-3 Energy consumption per person 12,142.71
person L/person
303-1 Liters of water consumed (bill) 32.13
day
Water is only taken
Water sources significantly
303-2 from the public
302-4 Reduction of energy consumption affected by withdrawal of water
water supply
Over the course of the year several member L/person
companies conducted energy efficiency au- 303-3 Water recycled and reused in liters 0
day
dits, implementation of which began in 2018
and will continue in 2019. Some facilities re-
placed conventional lighting by LED systems.
BIODIVERSITY
Some member companies also made improvements in the following areas:
The indicators for biodiversity impacts under Heading 304
• Lighting: switching to LED. can be summed up by stating that the industrial operations
of the member companies of the Ingeteam Group are con-
• Driving: talks on energy efficient driving ducted with the utmost respect for the natural settings in
• Production: Installation of a trigger installers to turn off equipment at which they are based. Ingeteam has no production facilities in protected
night, positioning of equipment on test benches to reduce consumption areas.
during testing, etc.
34
EMISSIONS Standards
CO2 emissions from vehicle movements were reduced in 306-1 Water effluent L 0
2018. We can also confirm that we do not emit any substan- Hazardous waste (batteries,
ces that deplete the ozone layer. 306-2.a.1 Kg 123,800.18
toners, rags, etc.)
306-2.a.2 Electrical-electronic-IT waste Kg 66,536.52

Standards
CO2 emissions from fossil fuel 306-2.b.1+2 Paper + Cardboard waste Kg 167,166.84
305-1.a combustion (except 305-1.b and T 3,439.36 306-2.b.3 Plastic waste Kg 64,875.62
305-1.c)
306-2.b.4 Wood waste Kg 1,097,388.74
CO2 emissions from vehicle mobility for
305-1.b T 1,036.17 306-2.b.5+6 Metal + Cable waste Kg 2,589,929.38
the company (except in-itinere)
306-3 Major spills L 0
CO2 emissions resulting from movement
305-1.c T 1,843.64
with a private vehicle (in-itinere)
CO2 emission from the consumption
306-4 Transport of hazardous waste
305-2 of electricity (due to the generation of T 8,381.55
purchased electricity) Waste from Ingeteam member companies is transported by
305-4 CO2 emissions T 14,939.88 authorised carriers. The efforts of our Brazilian subsidiary in
this regard are particularly noteworthy, as it has obtained a
Emissions of ozone-depleting
certificate of movement of environmental interest.
305-6 substances (ODS) in tons of CFC11 T 0
equivalent
306-5 Water bodies affected by water discharges and/or
EFFLUENTS & WASTE run-off
No such discharges have been detected.
Indicator levels for waste from manufacturing are up, due
to the increase in production. The Group Management is
also making an effort to reduce consumption of paper, car-
dboard and plastic at offices. This year, the plastic cups
in vending machines have been replaced by reusable paper cups and
employees have been given glass bottles so that they do not need to use
plastic ones.
35
ENVIRONMENTAL COMPLIANCE Accordingly, the Ingeteam Group has drawn up a specific Code of Con-
duct for Suppliers that details the requirements made of them in busi-
ness dealings. The Board of Directors of the Ingeteam Group requires the
307-1 Non-compliance with environmental laws and Group’s suppliers to agree to and strictly abide by the provisions of this
regulations code. Failure to do so would result in the Ingeteam Group breaking off
all business dealings unilaterally and declining any liability deriving from
No member company of the Group has been fined or given any non-mo-
such action.
netary penalty in regard to environmental issues.
Standards
ENVIRONMENTAL ASSESSMENT OF SUPPLIERS New suppliers whose selection includes
308-1 % 10.19
environmental criteria
The services and products sourced from suppliers by the Ingeteam Group
form an essential part of the value chain provided to customers, so they Environmental nonconformities in the
308-2 Nº 20
are required to comply strictly with legislation, with the same ethical prin- supply chain and steps taken
ciples on defence of human rights and integrity, prevention of corruption,
protection of intellectual and industrial property rights, safety, health, en-
vironmental matters and conflict minerals.
36
06
GRI 400
SOCIAL
DISCLOSURES
37
This section describes the links between the Ingeteam Group and the We are also committed to gender equality. As a result over 2300 group
persons with whom it interacts in business and in the communities in employees (60% of the total, mostly located in Spain) are covered by
which it operates. equality plans. Ingeteam Power Technology, SA – Technology works as
an equality partner of the Basque Government and has won the Zirgary
Some of the indicators are not specifically included in GRI 2016 stan-
Sariak work/life balance award. It is actively engaged in institutional cam-
dards, but they provide valuable information in evidencing the positive
paigns and works with various organisations such as the Bai Sarea ne-
engagement of the company with the technical and personal development
twork and Gizonduz.
of its employees. Further indicators included in non-financial information
that we believe enrich this section have been added this year. Finally, signing up to the 10 principles of the Global Compact ensures that
we encourage the application of respect for human rights in our opera-
We highlight net job creation of at least 290, largely in the local commu-
tions, among our employees, in our dealings with suppliers and in general
nities in which our plants are based in different countries. Our plants all
in the communities in which we operate.
comply strictly with all applicable labour legislation in each country.
The Sustainable Development Goals (SDG) most closely related to our
We take measures to facilitate a good work/life balance. This concern for
operations in this regard are the following:
our workers has led some of our companies to be awarded recognitions
and certificates as family-friendly companies (FFC).
38
EMPLOYMENT Standards
Average time spent working at
401-1 (a) Years 8.36
the company
401-1 New employee hires and employee turnover
(No. of
Net job creation in the course of
The Group created 291 new jobs in 2018, after creating 310 401-1 (b) employ- 291
the year
in 2017. This means more than 600 new jobs in two years, ees)
bringing the average workforce up to around 4000. 401-1 (c) Average age of the workforce Years 37.63
The jobs involved are highly-skilled. The average age of the Permanent contracts for the
401-1 (d) % 72.96%
workforce is less than 38, and average tenure at the Group is 8.36 years. workforce
100 of those employees make up the management bodies. 401-1 (e) Part-time workers % 4.26%
1079 employees left the Group voluntarily or by decisions of their emplo- 401-1 (f) Flexi-time workers % 38.58%
yers in 2018.
401-2 Benefits provided to full-time employees that are not
Almost two thirds of our workforce (73 %) are employed under indefinite
contracts. provided to temporary or part-time employees
We are committed to providing a good work-life balance. This is eviden- In general our organisation provides no benefits to full-time
ced by the facilities that we offer in terms of reduced working hours on employees that are not provided to temporary or part-time
request. In financial year 2018, i.e. almost 5% of our workforce, 168 em- employees. Our subsidiaries in Chile and the USA (with av-
ployees were on short-time and at least 1522 (39%) were on flexitime. erage workforces of 60 and 154 respectively) are exceptions,
in that they offer medical, life and other insurance solely to full-time em-
ployees.
39
We see no reason to discriminate on types of employment contract, so Several of our plants offer extended paid leave over and above that includ-
the same benefits are generally offered to all employees whatever their ed in collective bargaining agreements:
contract status. The benefits provided include the following:
• Facilities for reduced working hours for family care reasons.
• Accident insurance with far greater cover than required in law.
• Facilities for reaching individual agreements on working hours tailored
• Private health care premiums at a significant discount. to the needs of each worker.
• Paternity and maternity leave. • Facilities for requesting leaves of absence.
• Extended paid leave. The Technology Unit at Ingeteam Power Technology, S.A. has been award-
ed a Family-Friendly Company (FFC) certificate, takes part in forums on
• Reduced working hours for family care reasons.
this issue and is a member of the Denbora Sarea network.
• Leaves of absence.
Standards
• Regular medical check-ups.
Employees entitled to paternal leave in the
401-3 (a) No. 183
• Guaranteed minimum wage. course of the year
Workers have the same rights, with equal treatment and equal opportuni- Employees who took paternal leave in the
401-3 (b) No. 181
ties in employment relationships, though some limitations may result from course of the year
the nature and duration of their specific contracts.
GRI 401-3 Parental leave EMPLOYEE-EMPLOYER RELATIONS
Over 1500 Group employees (39% of the total) work flexi-

time to facilitate a good work/life balance. 402-1 Minimum notice periods regarding operational
181 of the 183 employees entitled to take maternity or pater- changes
nity leave during the year did so (98.9%), and subsequently There is no specific corporate policy at Ingeteam on mini-
returned to their jobs. mum notice periods to workers and their representatives
regarding significant operational changes, but the period
required in law is strictly complied with.
40
Information is provided in line with the circumstances in each case, using Standards
the relevant channels, but no minimum notice period has been set. Men 142
Women 11
OCCUPATIONAL HEALTH & SAFETY 403-2 (a) Accident rate (AR) by gender:
Total AR 22.05
AR Men 20.46
403-1 Workers’ representation in formal joint management-
AR Women 1.58
worker health and safety committees
403-2 (b) Occupational disease rate (ODR) 0.19
In-house personnel represented on health and safety com-
403-2 (c) Lost days rate (LDR) 41.63
mittees at the Ingeteam Group: 72%
403-2 (d) Employee absenteeism rate (EAR) 3.3
A large proportion of the Ingeteam workforce are represen-
403-2 (e) Number of deaths due to accidents at work 0
ted by health and safety committees made up of manage-
ment and workers, which advise and consult on Occupational Health &
Safety matters. Forming these committees ensures joint participation in 403-3 Workers with a high incidence or high risk of
the monitoring of actions to enhance Occupational Health & Safety.
diseases related to their occupation
In general, the activities carried out by workers at Ingeteam
403-2 Types of injury and rates of injury, occupational are not considered to give rise to risk situations liable to re-
diseases, lost days and absenteeism and number of work- sult in occupational or work-related diseases to an extent
related fatalities that can be classed as high incidence or high risk.
This year a total of 153 accidents were recorded, broken

down by gender as follows: Occupational diseases by gender:
PD Men 94.4%
PD Women 5.6%
41
403-4 Health and safety topics covered in formal Standards
agreements with trade unions 404-1 Training H per person 39.13

404-2 Cost of training per year € per person 457.05
The minimum number of meetings required under the re-
levant legal framework (at national and international levels)
are held, along with extraordinary meetings when convened, 404-2 Programmes for upgrading employee skills and
to hear the views of and work with workers’ representatives
transition assistance programs
in efforts to continually improve health and safety. The formal agreements
reached at such meetings are set down in writing and signed by both par- At Ingeteam we provide continual internal and external trai-
ties (workers’ representatives and employers) in a declaration of mutual ning for our employees to reduce any gaps in the knowledge
intent to observe their contents. and skills held by individuals and those required for their
jobs, striving to provide employees with skills that qualify
Number of formal agreements reached 24 them to attain goals in a changing working environment.
Number of meetings held 71 Most plants also offer leaves of absence for training (vocational training
and retraining), often entailing a guaranteed right to return to the same
or a similar job.
TRAINING & EDUCATION There are also programmes in place to handle employees exiting the or-
ganisation due to retirement or dismissal. They include pre-retirement
planning with the support of specialists to help smooth the transition from
404-1 Average hours of training per year per employee work to retirement.
Investment in training actions related to the company’s ope-
rations and intended to ensure and enhance the competiti-
404-3 Percentage of employees receiving regular
veness and occupational qualifications of employees totalled
performance and career development reviews
€1.8 million in 2018, which works out at €457 per employee.
At the Ingeteam Group, we realise that our workforce is our
In all 154,000 hours’ training was given (39 hours per employee). This
most valuable asset, so more than 40% of our employees
figure is 50% up on the previous year in terms of total hours, with a further
undergo regular performance assessments. In 2018, 1647
12 hours per employee. This shows that arranging continual training to
people were assessed. This figure is up by 400 on the pre-
ensure that workers are highly competent is a priority at the organisation.
vious year.
42
This is evidence of our desire to help our employees to develop personally Standards
and professionally through skilled management and the development of 405-1 (a) Female employees % 16.23
our steadily growing human capital.
405-1 (b) Male employees % 83.77
Standards 405-1 (c) Women with a permanent contract % 78.21
Employees receiving regular 405-1 (d) Men with a permanent contract % 72.06
404-3 % 42.24%
performance assessments 405-1 (e) Women on governing bodies % 6.78
405-1 (f) Men on governing bodies % 93.22
DIVERSITY & EQUAL OPPORTUNITY Direct number of disabled employees
405-1 (g) % 0.42
on the workforce
Number of equivalent disabled
405-1 Diversity of governance bodies and employees 405-1 (h) % 2.12
employees
We are an industrial Group with a workforce
405-1 (i) Existence of disabled-friendly facilities % 40.63
which is 84% male and 16% female. 7% of
the posts on governance bodies are held by
women.
There is little difference in hiring conditions: 72% of the men and 78% of
There is currently a gap between men and women in STEAM degree cour- the women hired are on indefinite contracts.
ses (Science, Technology, Engineering, Arts and Maths). At Ingeteam we
strive to encourage women to take up careers in technology through the The following table breaks down our employees by age groups in the geo-
Inspira project, which organises actions to heighten awareness in socie- graphical areas where or main sites are based:
ty and encourage interest among children, especially girls, to foster em-
powerment and help them overcome barriers to choosing the education
and occupation that they want.
43
Age range Total Spain Brazil Rep. Checa France USA Mexico
< 30 years 18.67% 11% 25% 20% 45% 21% 50%
30-50 years 71.71% 78% 72% 70% 49% 55% 48%
>50 years 9.62% 11% 3% 10% 6% 24% 2%
Between direct hires and equivalent arrangements, 2.54% of our workfor- At Ingeteam we do all that we can to eliminate any gender gap and su-
ce is made up of disabled persons. pport equal opportunities in recruitment, in opportunities for promotion at
work and in drawing up remuneration policies.
70% of the facilities used by employees are adapted for use by persons
with reduced mobility.
Subcontracting from specialist employment centres is evidence of our NON-DISCRIMINATION

commitment to disabled persons. We also work with and make donations
to Fundacion Adecco, some of our sites include a Lantegi Batuak work
406-1 Incidents of discrimination and corrective actions
centre and we take part in institutional campaigns to foster the integration
of persons with disabilities. We also work with Gureak, a Basque corporate
taken
group that creates and manages stable job opportunities properly adapted The Compliance Committee did not detect any cases of dis-
to persons with disabilities, especially for mentally disabled persons in crimination during the year.
Gipuzkoa.
The Group’s Code of Conduct contains a specific section on
Diversity, Equal Opportunities and Equal Treatment, which
405-2 Ratio of basic salary and remuneration of women to sets out the commitments and the behaviour expected of Group employees:
men Group employees must act on the basis of respect, dignity, equality and
As outlined under point 202-1, at Ingeteam wages depend diversity in their working relations with other employees, particularly those
on training, experience and performance. The gender of who manage teams/people.
workers is not taken into account. Since 2012, chapter 2 of • Efforts must be made to foster working relationships based on respect,
our Code of Conduct has read as follows: mutual cooperation and equality of individuals over and above differen-
“The wages received by employees will be determined by the functions ces of any type; diversity and harmony must be properly managed, with
that they perform, with the applicable bargaining agreements always be- particular consideration in regard to the integration into employment of
ing observed”. persons with disabilities or functional diversity, and equal opportunities
44
must be offered in access to employment, occupational development CHILD LABOUR

and promotion based on merit and capability.
• At the Ingeteam Group no discrimination of any kind is permitted, nor 408-1 Operations and suppliers at significant risk for
any type of harassment or physical, sexual, psychological or verbal abu-
incidents of child labour
se or other degrading treatment. All available measures must be used
to pursue and reprimand any such actions or circumstances detected. Ingeteam is firmly opposed to the use of child labour, which
The procedures and protocols needed to prevent and respond to such it considers reprehensible.
cases have been set in place.
The organisation is strongly against child labour and refuses
• Discriminatory language is not permitted in corporate communications to acquire any product manufactured using child labour,
of any kind, be they external or internal, and inclusive language is en- aligned with local legislation and ILO requirements.
couraged within the organisation.
The services and products sourced by the Ingeteam Group form an essen-
tial part of the value chain provided to customers, so suppliers are required
FREEDOM OF ASSOCIATION AND COLLECTIVE also to commit to:
BARGAINING • Strict compliance with legislation.
• Ethical principles based on the defence of human rights and integrity.

407-1 Operations and suppliers in which the right to
• Prevention of corruption.
freedom of association and collective bargaining may be at
risk • Protection of intellectual and industrial property rights.
All employees of the Ingeteam Group in Spain are covered • Health, safety and environmental friendliness.
by the relevant sectoral collective bargaining agreements,
which are supplemented by company-specific agreements
negotiated with workers’ representatives where relevant at
each workplace. These agreements include a section on Occupational
Health & Safety.
At our plants abroad we comply with the relevant legislation in this regard.
45
FORCED OR COMPULSORY LABOUR HUMAN RIGHTS ASSESSMENT
409-1 Operations and suppliers at significant risk for 412-1 Operations that have been subject to human rights
incidents of forced or compulsory labour reviews or impact assessments
The risk assessments conducted in regard to preventing ris- Ingeteam does not conduct assessments of the application
ks under criminal law and maintaining the compliance mo- of human rights.
del have not identified any operations involving significant
risks for breaches of freedom of association and collective
bargaining rights, for discrimination in employment and occupation, or for
412-2 Employee training on human rights policies or
forced, compulsory or child labour.
procedures
Over 500 hours of training on the prevention of harassment
SECURITY PRACTICES
was provided to numerous members of management staff
in 2018.
410-1 Security personnel trained in human rights policies
or procedures 412-3 Significant investment agreements and contracts
The Ingeteam Group has no security personnel in the sense referred to that include human rights clauses or that underwent human
here. rights screening
As yet there are no human rights clauses in the contracts
RIGHTS OF INDIGENOUS PEOPLES of the Ingeteam Group. The possibility of including such
clauses in the general terms and conditions of purchasing
was considered in 2018.
411-1 Incidents of violations involving rights of indigenous
peoples
There have been no cases of violation of rights of indigenous
peoples in the course of the operations of the companies in
the Ingeteam Group or related to same.
46
LOCAL COMMUNITIES SUPPLIER SOCIAL ASSESSMENT
414-1 New suppliers that were screened using social

413-1 Operations with local community engagement,
criteria
impact assessment and development programmes
In 2018 filters based on social criteria were not applied in the selection of
We have a sponsorship and donations policy aligned with
any new suppliers.
the Group’s corporate social responsibility goals and strate-
gy and with its Code of Conduct, and more specifically with
the compliance model for the prevention of criminal activi- 414-2 Negative social impacts in the supply chain and
ties, particularly as regards corruption, given that donations and sponsor-
actions taken
ships entail a risk of covert bribery, as set out in international standards
such as ISO 37001. In 2018 no negative social impacts were recorded in the
supply chains of Ingeteam Group member companies.
The general purpose of this policy is to set out principles for action and
basic instruments to be drawn up, implemented and optimised at Group
member companies in regard to sponsorship and donations, especially in
the area of investment and development in the local communities where
PUBLIC POLICY
the Ingeteam Group operates.
We actively seek to make improvements in the societies in which we ope-

rate through a range of actions under the following headings: 415-1 Political contributions
• Technical The Ingeteam Group made no contribution to any political

party or representative in 2018.
• Social
• Sports
CUSTOMER HEALTH AND SAFETY

413-2 Operations with significant actual and potential
negative impacts on local communities 416-1 Assessment of the health and safety impacts of
There have been no cases of operations with a significant product and service categories
negative impact on local communities.
Ingeteam guarantees that all its products are constructed and operate ac-
cording to characteristics set out in documents of various types, such as:
47
• Technical data sheets. companies are not subject to the labelling procedures in common use for
consumer products.
• Product catalogues.
Each product carries an ID plate which gives basic information, including
• Technical project specifications based on customer requirements and
at least a manufacturing serial number to guarantee traceability. Each type
the points set out in the various technical and commercial quotes sub-
of product has the characteristics described in the relevant technical data
mitted.
sheet, where its full technical, construction and functional characteristics
The system for claims and complaints and the methods for dealing with are listed.
them are as per quality assurance standard ISO 9001, to which most
Group companies adhere.
417-2 Incidents of non-compliance concerning product and
All the electrical products of Ingeteam carry the EC Electromagnetic Com- service information and labelling
patibility certificate, which assures that they are safe to use.
There were no incidents of non-compliance concerning product and servi-
Complaints and their resolution are distributed across the perimeter of all ce information and labelling in the year covered by this report.
the business units of the Group. Member companies in Spain received
1614 customer complaints, 93% of which were resolved.
417-3 Incidents of non-compliance concerning marketing
communications
416-2 Incidents of non-compliance concerning the health
and safety impacts of products and services There were no incidents of non-compliance concerning
marketing communications such as advertising, promo-
There were no cases of non-compliance concerning health tions, sponsorship, etc. in the year covered by this report.
and safety impacts of our products in the year covered by
this report.
CUSTOMER PRIVACY
MARKETING AND LABELLING

418-1 Substantiated complaints concerning breaches of
customer privacy and losses of customer data
417-1 Requirements for product and service information
and labelling No Ingeteam Group member company received any subs-
tantiated complaints concerning breaches of customer pri-
The products manufactured and marketed by Ingeteam Group member vacy or losses of data.
48
Personal data are processed responsibly, in line with the legislation on SOCIO-ECONOMIC COMPLIANCE
privacy applicable at the relevant time (at national and international le-
vels). In view of the entry into force on 25 May 2018 of the new General
Data Protection Regulation (GDPR), Ingeteam set up a project to ensure 419-1 Non-compliance with laws and regulations in the
compliance with the said regulation by Group member companies in the social and economic area
EU. A Procedures Policy was thus set up to ensure compliance with the
The Ingeteam Group was not fined for non-compliance with
regulation.
laws and regulations in the social and economic area in the
Compliance with regulations on privacy is a cross-sectoral obligation appli- year covered by this report.
cable to all areas of the business and all employees. The actions taken
to ensure compliance included training sessions and the setting up of a
Privacy Committee to coordinate data management and act as an advisory
body.
49
07
THE 10
PRINCIPLES
OF THE GLOBAL
COMPACT
50
HUMAN RIGHTS LABOUR STANDARDS
PRINCIPLE 1 PRINCIPLE 3
Businesses should support and respect the protection of Businesses should uphold the freedom of association
internationally proclaimed human rights, within their area and the effective recognition of the right to collective
of influence negotiation
The Ingeteam Group endeavors to ensure that all our actions promote Our workers are covered by the appropriate sector-level collective
and guarantee the full enjoyment of human rights. Day by day, our or- agreements, complemented by company-specific agreements,
ganization, with an extensive international presence, makes every effort negotiated with the workers’ representatives at the various work
to incorporate new measures to better address this principal, if at all centers.
possible, in areas such as working conditions, safety, health, education
and the rights of disadvantaged groups, amongst others.
PRINCIPLE 4
This year, we would highlight the campaign entitled “TAKE YOUR TIME,
for your health and safety. This campaign came into being with the idea Businesses should support the elimination of all forms of
of raising the awareness and sensitizing still further the Ingeteam emplo- forced and compulsory labour
yees in the area of Occupational Risk Prevention, whilst also promoting
Actions of this type are not applicable to our organization or to any of our
a series of actions directed at different groups and promoting a healthy
principal stakeholders, and we hereby declare our support to initiatives
lifestyle.
promoting the eradication of any action of this nature.
PRINCIPLE 2
PRINCIPLE 5
Companies must make sure that they are not complicit in
human rights abuses Businesses must support the abolition of child labour
We have no record of activities of this type, either at present or in the past. This conduct is not applicable to our organization, either in the past or
at present, given the fact that the performance of our activities is not
prone to the wrong and reprehensible use of child labor, as may occur
in other sectors.
51
PRINCIPLE 6 nues to be a priority in our organization, with an ongoing focus on promoting

material recycling. Proof of this is the continuous optimization of our con-
Businesses must support the elimination of discrimination sumption ratios.
in respect of employement and occupation
The Ingeteam Group promotes equal opportunities without taking account PRINCIPLE 9
of race, color, nationality, gender, marital status, religion or sexual orienta-
tion. Diversity is one of our identifying marks, all the more so in an organi- Businesses must encourage the development and diffusion
zation like ours, operating in a number of geographical areas. of environmentally friendly technologies
This year we are proud to highlight the fact that we have considerably
THE ENVIRONMENT increased our budget allocation for environmental investments.
PRINCIPLE 7 ANTICORRUPTION
Businesses must maintain a precautionary approach to

environmental challenges PRINCIPLE 10
The commitment of the Ingeteam group to the conservation and protec- Businesses should work against corruption in all its forms
tion of the environment, has been present right from the outset and is a including extortion and bribery
priority objective. To such an extent that, nowadays, we’re unable to work
without a preventive approach that aims to minimize our environmental We have no record of activities of this type.
impact, as confirmed by our indicators.
PRINCIPLE 8
Businesses must undertake initiatives to promote greater

environmental responsability
In 2017 we continued to make every effort to reduce our energy emissions
and consumptions. On the other hand, environmental sustainability conti-

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SUSTAINABILITY REPORT

Taking care of what really matters

• 01 Letter from the CEO – 03

• 03 GRI 102 About Us – 07

• 04 GRI 201 Economic Performance – 24

• 05 GRI 300 Environmental Disclosures – 29

• 06 GRI 400 Social Disclosures – 35

• 07 The 10 Principles of the Global Compact – 49

Mr. Adolfo Rebollo Gómez

 Financial, obliging us to attain sufficient yield to assure future growth.

The contents of this document are as follows:

GRI 102. General Disclosures GRI 300. Environmental Disclosures

• Anti-competitive behaviour • Labour/management relations

• Occupational health & safety

• Training & education

• Diversity & equal opportunity

• Wind Energy: generators for wind turbines up to 9 MW, with over

uth America and Central America

erica South America and Africa Europe Asia Oceania

102-5 Ownership and legal form 102-7 Scale of the organisation

• Long-term debts: K€113,091

Treasury stock The Group’s worldwide turnover breaks down by countries/continents as

Shareholders • Rest of Europe: 23%

102-6 Market served 102-8 Information on employees and other workers

Management & 102-9 Supply chain

Average workforce 102-10 Significant changes to the organisation and its

102-11 Precautionary principle or approach

102-12 External initiatives STRATEGY

GOVERNANCE 102-20 Executive-level responsibility for economic,

• Functional Corporate Management, which brings together functions co-

Boards of the Business Units 102-21 Consulting stakeholders on economic,

Mr. Mikel Ruiz Madariaga. Voting member 102-25 Conflicts of interest

Mr. Alex Belaustegi Foronda. Voting member

102-30 Effectiveness of risk management process 102-35 Remuneration policies

Another goal is to promote the strategy of the organisation and to encoura-

STAKEHOLDER ENGAGEMENT 102-42 Identifying and selecting stakeholders

Ingeteam’s stakeholders are the following:

• People 102-44 Key topics & concerns raised

REPORTING PRACTICES • INGETEAM Power Technology India Private Co. Ltd.

• INGETEAM Australia (PTY) Ltd.

• INGETEAM, A.S. 102-46 Defining report content and topic boundaries

• INDAR América, S.A. de C.V. Stakeholder inclusiveness

The application of the four principles refers to the following parameters:

102-53 Contact point for questions regarding the report

102-54 Claims of reporting

102-55 GRI content index

102-56 External assurance

201-1 Direct economic value generated and distributed

202-1 Ratios of standard entry-level wage by gender

All workplaces in Spain subject to nationwide regulations on equality plans

• There are procedures for purchasing, assessment and approval of sup-

• Regular reviews of risk areas.

205-3 Confirmed incidents of corruption and actions taken

206-1 Legal actions for anti-competitive behaviour, anti-

MATERIALS 301-3 Reclaimed products and their packaging materials

302-1 Energy consumption within the organisation

301-2 Recycled input materials used

• Use of electric vehicles for company journeys.

• Installation of solar panels at office facilities.

306-2.a.2 Electrical-electronic-IT waste Kg 66,536.52

• Wind Energy: generators for wind turbines up to 9 MW, with over

• Functional Corporate Management, which brings together functions co-

• There are procedures for purchasing, assessment and approval of sup-