We want to give you something more than energy; that’s why we connect when we contribute social value.
VAS, Value Added to Society, is an exercise that Celsia and all the Grupo Argos Companies carry out annually. It consists of a model that economically monetizes the impacts through different externalities that allow us to understand how we add or subtract value to society.
Impact assessment serves as a guide to adequately and manage in advance different risks and opportunities, make better decisions, continue adding efforts to potentiate positive impacts, create Action Plans to mitigate negative impacts and be more agile and adaptable in a changing world to generate long-term shared value. We are committed to creating social value in the countries where we operate, and we seek to make our decisions and actions are conscious.
Every year, the assumptions and multipliers of the model are updated through a local and international bibliographic review to identify the best practices in terms of the economic valuation of impacts. Based on this, we have identified 10 social, environmental and economic externalities that positively and negatively impact society with our operation.
Social Externalities
- Talent Development
- Investments in the community; and
- Occupational Health and Safety (SISO, in Spanish).
VAS Results 2022
In 2022, our net value delivered to society was USD 223 Million, equivalent to 1.37 times the retained profit, which was USD 171 Million.
* Data in USD Million
The results of the Value Added to Society that we generated during 2022 are presented in a bridge graph:
- First column: This represents the value that the Organization retained for itself in the period (Retained Profit).
- Following columns: These represent the benefits (positive impacts) or costs (negative impacts) that we generate for society. These values are added or subtracted from the Retained Profit.
- Last column: The result of the Value Added to Society.
It is important to highlight that when a positive impact increases, it means that there is a greater benefit for society. When a negative impact decreases, it means that the affectation/damage to society is being less.
Economic Externalities
Comparative Economic Value 2021 – 2022 USD
Economic Value 2022 USD
Salaries and Benefits:
We can identify how the economy is boosted from the positive impact generated by the payment of salaries and benefits to our employees.
The payment of salaries and benefits reached USD 74 Million, decreasing 6.7% compared to the previous year, this was due to the structured closure of the Bahía las Minas Thermal Power Plant in Panama. However – and as a premise of our Celsia culture – we always seek to create jobs; this is how our workforce of female employees grew by 6.9% in 2022 compared to the previous period, while that of men grew by 0.5%. All this, so that more and more Celsians contributed their good energy to us and we continued to develop our teams. Likewise, we have a salary increase higher than inflation in each of the countries where we operate, aligned with the Compensation Policy, which is intended to objectively, equitably and competitively manage the remuneration of all employees.
Interest and Dividends:
This externality has two components, the payment of interest and dividends to financial institutions (debt payment) and Investors (dividend payment).
The impacts derived from financial expenses and dividend payments were USD 191 Million, which represents 50.18% more than the previous year. In 2022, the Company strengthened its capacity to create value and deliver consistent results; this is evidenced by the distribution of dividends to its Shareholders in the different companies in Colombia, aligned with business growth and the creation of value for all of our Stakeholders. Financial expenses also showed high growth, primarily due to the increase in interest rates in the country and internationally, as well as the increase in inflation, which affected the indexes (Bank-Reference Indicator (IBR, in Spanish), Libor and Consumer Price Index (CPI)). However, the Company’s Balance-Sheet structure remains strong, as reflected by Celsia’s AAA investment grade credit ratings.
Taxes:
We are responsible businessmen and committed to paying taxes in the countries where we operate, thus contributing to the development and revitalization of the respective economies and their collective needs.
The impact on society derived from the payment of taxes was USD 75 Million, which represents a decrease of 1.96% compared to the impact of 2021. Although during 2022 the payment of taxes in the company increased by 65.5%, his result is slightly impacted by the increase in the Representative Market Rate (TRM, in Spanish) with which the externality is monetized, which was 13.6% higher than the TRM of 2021.
On the other hand, we continued executing projects under the Works-for-Taxes tax mechanism. In 2022, four projects were executed in the education sector that benefited more than 62,000 people in 21 municipalities of Antioquia and Tolima, in Colombia. Likewise, the paving project for the Suárez-Betulia road was completed, in which 10.2 km were built, benefiting 7,000 inhabitants of the area.
With this, we ensured a true, effective impact in the communities surrounding our operations.
During 2022, we were awarded seven education projects, three road-infrastructure projects and one climate-change adaptation project.
Social Externalities
Comparative Social Value 2021 – 2022 USD
Social Value 2022 USD
Talent Development:
The impact of this externality depends on the turnover of our human talent, the total number of training hours offered and the ratio between men and women at Celsia. This externality reached USD 1.2 Million, increasing 210.6% compared to 2021. This positive impact is due to the increase in the number of our employees in the different countries where we are present, in addition to the fact that 100% of them received training in different programs that foster the acquisition of skills and help them improve in the management of their role and their personal skills. On the other hand, this externality is positively impacted by the number of people who leave the Company because they take with them the knowledge and experience acquired to be applied in new labor markets.
Investment in Communities:
The value generated to society by this externality was USD 10 Million, 26.4% more than in 2021. This result in 2022 reflects the commitment to the communities in our areas of influence to maintain a relationship of creating shared value. This positive impact is due to the increase in works of the Enciende Program that was taken to the area of influence of new projects and to areas where we are suppliers of electricity service in Colombia (Valle and Tolima), to the execution of infrastructure works in El Tesorito and Guajira from the voluntary investment, to the execution of early agreements of the Environmental Management Plans (PMA, in Spanish) of Salvajina and Prado on the issue of roads and roads, and to voluntary investments of support for the improvement of roads in the communities of the areas of influence of Calima, Alto and Bajo Anchicayá, Alto and Bajo Tuluá, Cucuana and minor hydroelectric plants.
Occupational Health and Safety (SISO, in Spanish):
At Celsia, safety is a life value and the health and safety of our employees and contractors is a priority, so we work every day so that they can return to their homes safe and sound. This externality reflects the impact that the accidents of our employees and contractors have on society, the short and long absences when they get sick due to work-related causes or accidents during the development of their activities, events that we want to avoid at all costs.
In 2022, this impact represented a cost of USD 3.8 Million and although it is still negative, there was a decrease of 17.5% compared to the cost of the previous year. Unfortunately, four people from our contractor companies lost their lives in events that could have been prevented by following the security protocols we have. We are clear about this because all the events were duly investigated and their causes were identified.
These events confirm our commitment to society to ensure the safety of our people, to strengthen awareness of self-care with our “I Choose to Take Care of Myself” Program to prevent these events from happening again and to be able to maintain our goal of ZERO fatalities.
Environmental Externalities
Comparative Environmental Value 2021 – 2022 USD
Environmental Value 2022 USD
Greenhouse-Gas (GHG) Emissions:
Aware of the importance of combating climate change as a global challenge, in this externality we monetize the impact of our greenhouse-gas (GHG) emissions with Scope 1 and 2.
The externality of GHG emissions reached a cost of USD 8.3 Million, increasing by 11.4% compared to the previous year.
This behavior is due to:
- Scope 1 emissions, associated with the operation, increased the consumption of non-renewable energy since the Cativá Thermal Power Plants in Panama and Meriléctrica in Colombia had a greater participation in the generation basket for the year 2022; additionally in the last quarter of the year, the El Tesorito Thermal Power Plant entered into operation.
- Scope 2 emissions: In contrast, we had a 44% decrease compared to 2021 for Scope 2. It should be noted that the main emissions of this Scope correspond to transmission and distribution losses, Which By 2022 Achieved A Reduction Of 28% – Compared To The Previous Year – Thanks To The Specific Loss-Reduction Plan, according to its context and reality in Tolima and Valle del Cauca.
Atmospheric Emissions:
This externality allows us to quantify the impacts on air quality, associated with air pollution derived from emissions of NOx, SOx, Mercury and particulate matter.
During 2022, this externality presented a negative behavior; the costs generated to society derived from these emissions amounted to USD 261 Million, primarily due to:
- A considerable increase in NOx emissions, due to the operation of the Meriléctrica and El Tesorito Thermal Power Plants in Colombia. It should be noted that the Organization’s thermal power plants in the electrical system are backup to guarantee the energy demand of the countries where we are present and that the PM, NOx, SOx pollutants that are emitted are not in densely populated areas or close to these areas.
- By 2022, we had a 49% decrease in SOx emissions due to the reduction in diesel consumption compared to 2021 and 49% in PM emissions due to the type of fuel used to operate the Colón Thermal Power Plant in Panama.
During 2022, we had no atmospheric emissions associated with mercury.
Water Consumption:
The costs generated to society, due to this externality, were USD 46,700, presenting a slight decrease compared to the previous year. By 2022, at the Yumbo administrative headquarters in Colombia, the collection of rainwater located in the NOVA building began to be measured, reducing the pressure on the consumption of drinking water from the municipal aqueduct that provides the service.
The generation of hydropower makes a non-consumptive use of water, meaning that the water returns to the channels in the same amount that was captured. The data registered as consumption corresponds, primarily, to domestic-water uses, order and cleanliness of the infrastructures in the assets.
* Agua retornada a la fuente de extracción en una calidad similar o superior de la que fue extraída y con un nivel mayor de oxigenación
Celsia does not collect or consume water in places with water scarcity or extreme water scarcity
Biodiversity:
This externality quantifies the impacts on biodiversity from our operations and facilities, as well as from our Habitat-Compensation and Rehabilitation Programs.
In 2022, this externality represented associated costs of USD 26.4 Million, a decrease equivalent to 4.97%, with respect to the impact generated in 2021, which confirms our commitment to continue developing biodiversity-conservation actions with a firm commitment to the protection of our ecosystems.
With our voluntary initiative of ReverdeC Ecological Restoration, in 2022 we restored 1,201 hectares and planted 3.6 million trees in the Departments of Valle del Cauca (watersheds of the Riofrío, Amaime, Garrapatas and Yotoco Rivers), Tolima (the Coello River watershed), Antioquia (watersheds of the Claro and Aburrá Rivers) and Atlántico (Canal del Dique and Ciénaga de Mallorquín basins)
2021: 3.056.214
META 2022: 1.000.000META 2021: 1.000.000
2021: 1.013 ha
2021: 305,62%
Externalities: Any positive or negative impact that we generate on third parties. This represents a social benefit or cost that is not compensated in money and is not reflected in the Financial Statements.
Works for Taxes: A Colombian Government mechanism in which companies can pay up to 50% of what they declare for income in social-investment works.
EMP: Environmental-Management Plan.
