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HUMAN
CAPITAL

During this extraordinary year for IEnova, we are particularly proud of having created 37% more direct jobs, up from the 639 jobs of 2015 to 877 at year-end 2016. We were able to incorporate the Gasoductos de Chihuahua employees into the IEnova workforce efficiently, granting them working conditions that are similar or better than what they had prior to integration.

Our employees span several generations, including people with vast experience in the energy industry and young graduates who appreciate the opportunity of belonging to a company such as IEnova. Because we value diversity and consider that it fosters creativity and innovation, we make no distinctions for age, gender, sexual orientation, political affiliation or religious beliefs. 26% of our employees are women, and many of them occupy middle- and top-management positions.

IEnova employees enjoy the opportunity for personal and professional growth in a pleasant work environment where they have the tools and training they need to fulfill their duties. In 2016 our total voluntary turnover rate was only 6%.

DISTRIBUTION OF EMPLOYEES
BY GENDER AND AGE

3,675 HOURS
OF TRAINING

Because we view talent as a strategic asset that generates competitive advantages, we offer a variety of training programs.

Our IEnova Operating Training Program provides paid energy-sector-specific training for three months for young technicians who have recently graduated from technical schools and universities. The program has been very successful both for IEnova—which hires a high percentage of the graduates—and for the students.

In 2016 the third generation of 30 technical operators graduated, including five women who are now part of the IEnova operating team. As a result of the success of this program and the growing need for specialized technicians, in 2017 we plan to begin offering the course twice a year.

We also developed the program known as the “Certification in the IEnova Leadership Standard”, a specialized two-year training that is part of our Development Model. The program is obligatory for those employees who manage teams. Certification is also a pre-requisite for anyone aspiring to a promotion within the company.

In 2016 we registered an unprecedented growth in the number of employees. This growth, in addition to the opening of the energy sector, makes it imperative for us to offer our employees an ever-wider range of options for professional development, including the opportunity to participate in interesting projects.

In collaboration with the Human Capital team, IEnova leaders are firmly committed to motivating their team members to follow through on their career plans. As part of this commitment, we determine specific growth plans for each employee and we promote cross-training (employees who receive training for other positions in their division to acquire new knowledge and continue to grow professionally).

We also have succession plans in place for Vice President and Director positions, based on a methodology that analyzes the ideal competencies and leadership styles needed to ensure that both the IEnova culture and values endure, and even strengthen.

On the other hand, for upcoming generations we offer a Professionals in Development plan that seeks to create a pool of young employees eager to develop a deeper understanding of the energy industry and to gain from the experience of a management team with an exemplary track record.

These students participate in a standard recruiting process. At the end of the training period, participants in the program are evaluated as potential IEnova employees.

In order to contribute to the professional growth of our employees, we designed a corporate communications plan known as IEnova Somos Todos (We Are All IEnova) to foster a sense of unity among all our subsidiaries. The campaign includes periodic meetings during which area leaders share with their collaborators the status of projects they are working on, operating results, and assignment of responsibilities.

In 2016, the IEnova Somos Todos program was also in charge of drafting the IEnova al Día (IEnova Up To Date) newsletter on the most relevant company information. We also developed a campaign to celebrate IEnova’s 20th Anniversary and highlighted the history and accomplishments of our company.

In addition, we implemented the Fueling Our Future (FOF) program aimed at optimizing processes and gain efficiencies throughout the organization.

For the past four years, we have hired an independent consulting firm to do compensation research and assess our competitive position. Results consistently show that the compensation package and benefits we offer our employees are above the national average.

In late 2016, we began using a robust platform known as Mi Espacio (My Space) that includes information pertaining to each employee’s compensation, as well as other issues such as training programs, benefits, and evaluation results. Through this platform, using any device connected to the internet, employees can access their own information at any time.

At the beginning of each year, we perform a salary-planning process to determine raises and bonuses for each employee, taking into consideration their annual performance evaluation, as well as the company’s financial and operational results.

This year we strengthened the employee benefits package with two main measures: Vacation pay was increased from 25 to 55% of the vacation days allocated to each employee, which for all levels is more than what is established by law. Christmas bonus was increased from the prior 25 to 30 days’ pay.

THE BENEFITS WE OFFER OUR EMPLOYEES

  • Major health insurance for employees and their family members
  • Minor health insurance
  • Life insurance
  • Sefore retirement plan for pension, death, and total and permanent disability
  • Savings fund
  • Performance bonus
  • Short-term bonus
  • Long-term bonus
  • Vacation pay
  • Electronic food coupons
  • Company car for Vice Presidents and Directors
  • Medical check-ups for Vice Presidents and Directors
  • School and professional growth scholarships
  • Retention and attraction bonuses
  • High-potential recognition program
  • Additional vacation days to those established by law
  • 30-day Christmas bonus
  • Complementary disability compensation, additional to Social Security
  • Flexible medical benefits

Respect is a key value of our culture that seeks to achieve an environment of equality in which diversity is promoted with equal opportunities for all, without distinction based on gender, race, age, religious beliefs, political doctrine, social or physical conditions, or sexual orientation.

We strictly adhere to all applicable regulations in terms of legality and the respect for human rights, and we operate based on our Code of Ethics.

Additionally, we have policies in place that promote inclusion and diversity, including the following:

DEVELOPMENT, EQUALITY, AND DIVERSITY COMMITTEE
Several top executives in the company participate, and whose main responsibilities are to:

  • Promote measures to encourage a culture of equality and diversity among all members of the organization.
  • Verify that we carry out programs to promote strengthening competencies for personal growth, favoring the comprehensive development of employees.
  • Ensure that there are policies and procedures in the company that take into consideration the issues of diversity, equality, and inclusion.
  • Validate that internal promotions are carried out in a framework of equality and transparency.
  • Promote causes related to diversity, equality, and inclusion in the community.
  • Validate that we have the annual budget required to carry out the projects specified by the Committee.
  • Generate the guidelines and approve the general strategy for equality, diversity, and development at IEnova, aligned with the strategy and IEnova’s sustainability pillars.

In 2016 IEnova was ranked 50th
on the top 100 companies in Mexico with
the best gender equality and diversity policies

HEALTH
AND SAFETY

The goal of our Health and Safety management system is to make sure that our employees are able to carry out their duties under safe working conditions.

At IEnova we comply with the strictest safety regulations, such as the Official Mexican Standards, the Federal Labor Law, the Social Security Law, and all regulations applicable to our company. In addition, we also adhere at all times to our Manual for Managing the Health and Safety System, our Internal Labor Bylaws, our Code of Ethics, and all policies and procedures developed specifically to achieve a zero-accidents operation, in a work environment in which health and safety play a key role. To maintain or even improve our health and safety standards, we implement a series of world-class preventive measures.

As a result of the fast pace at which we are building the Sonora, Ojinaga-El Encino, and San Isidro-Samalayuca pipelines, in addition to the inclusion of Gasoductos de Chihuahua into our operation in September 2016, the number of hours worked reached record highs for the company, up from 4.09 million in 2015 to 7.8 million hours worked in 2016. In terms of Health and Safety, this increase entailed additional responsibility, since each hour worked is, by definition, a moment of exposure during which we need to be vigilant and to apply controls.

All companies that require certification because of the characteristics of their operation are either already certified or in the process of being certified under Occupational Health and Safety Assessment Series (OHSAS 18001).

PERFORMANCE
IN SAFETY

All our operating units comply with the requirements of the comprehensive evaluations done by the Mexican Department of Labor and Social Welfare (STPS) in order to be certified under its Self-Management Safe Company Program in Health and Safety at the Workplace (PASST).

We have voluntarily opted to continue to be part of this program and our goal is to include all our assets before they have been operating for 12 months. For those assets already operational, our goal is to maintain or surpass their current level, with level 3 being the highest achievable level.

In 2016, three of our facilities were evaluated under the comprehensive PASST self-management program. We also included a new asset into the program, Energía Sierra Juárez (ESJ). Currently, two of our facilities are at level 1 (TDM, GR), three have a level 2 score (ECA, IGM, ECOGAS Chihuahua), and another 3 have obtained the level 3 grade (TGN, ECOGAS Mexicali and ECOGAS La Laguna-Durango).

Our Total Recordable Incidents Rate (TRIR) was 0.77, our Lost Time Accidents Rated (LTAR) reached 0.28, both at levels below the prior year and surpassing the goals we had set for 2016. For next year, our goals will be a stricter 2.19 in TRIR and 1.66 LTAR.

SOCIAL
COMMITMENT

At IEnova we are driven by our strong commitment to contribute to the wellbeing of the communities where we operate. We manage the economic and human resources we allocate to our social efforts through Fundación IEnova, a series of Trusts linked to our main projects already in operation or under construction, as well as through the social work we do at the projects we are building as part of our joint ventures:

2016 DONATIONS
BY ACTION PILLAR
USD$500 THOUSAND

Created in 2015, Fundación IEnova operates with the goal of strengthening the impact of the economic and human resources we invest in the communities in which we operate and to which we belong.

Fundación IEnova is a second-tier foundation duly authorized by the Mexican Internal Revenue Service (Servicio de Administración Tributaria, SAT) to make donations and economic contributions.

MANAGEMENT STRUCTURE
FOR FUNDACIÓN IENOVA

CORPORATE
VOLUNTEERS

Our corporate volunteers are an integral part of Fundación IEnova. We encourage our employees to participate in social commitment events.

In 2016, we held 14 volunteer events through which we supported the following projects:

-Escuela + Sonrisas (school + smiles): a drive to collect school supplies for donation to foster homes, benefiting approximately 190 children in six cities.

-Árbol de la Sonrisa (tree of smiles): a drive to collect toys, clothes, and shoes for donation to foster homes, benefiting approximately 230 children in seven cities.

-Reforestation Program in the foothills of the Nevado de Toluca volcano: we adopted a half-hectare to plant 500 trees, 65 employees and their families participated.

+1,000 PEOPLE
BENEFITED BY OUR CORPORATE
VOLUNTEERS PROGRAM IN 2015 AND 2016

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