Acciona S A : Sustainability report h1 2023

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S U S T A I N A B I L I T Y R E P O R T

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CONTEXT__________________________________________________________________ 2

KEY MILESTONES____________________________________________________________ 4

EVOLUTION OF THE MAIN INDICATORS __________________________________________ 5

PEOPLE CENTRIC ____________________________________________________________ 6

Merit recognition __________________________________________________________ 6

Diversity__________________________________________________________________ 7

Access to rights ____________________________________________________________ 8

Environments _____________________________________________________________ 9

PLANET POSITIVE __________________________________________________________ 10

Climate _________________________________________________________________ 10

Circularity _______________________________________________________________ 15

Biodiversity ______________________________________________________________ 16

Water___________________________________________________________________ 17

EXPONENTIAL LEADERSHIP ___________________________________________________ 18

Governance ______________________________________________________________ 18

Innovation _______________________________________________________________ 19

Transparency _____________________________________________________________ 19

Supply Chain _____________________________________________________________ 20

INTEGRATE TO TRANSFORM __________________________________________________ 21

A sustainable difference in every project _______________________________________ 21

Local Ecosystems__________________________________________________________ 22

Impact funding ___________________________________________________________ 24

EXTERNAL EVALUATIONS ____________________________________________________ 27

Our ESG rating ____________________________________________________________ 27

Main sustainability awards __________________________________________________ 27

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C O N T E X T

This report comes at a time when the effects of climate change, caused by human activities, are rapidly and intensely affecting the entire planet.

RECORD TEMPERATURES

2023 is witnessing unprecedented temperatures. We are in the midst of one of the biggest heatwaves on record. Barcelona has just set a temperature record with a scorching 45.3ºC. Similarly, Rome has also broken its own record by reaching 42.9°C (beating the hottest day of 2022, which was 40.8°C). China faces a dangerous situation, having recorded the highest national temperature of 52.2ºC in Simbao. Meanwhile, Saratona Sping, in the United States, is approaching 54ºC. This heatwave is pushing temperatures to the limit on land with dangerous consequences. Fires continue to threaten the planet's unique ecosystems. In Spain, fires have devastated a total of 59,568 hectares of land so far in 2023 up to 9 July, which is 70% more than the average for the decade (35,040 hectares) but 18.7% less than in the same period a year ago, according to data from the Ministry for Ecological Transition and Demographic Challenge.

Droughts are becoming more frequent. The national average value of accumulated precipitation from 1 October 2022 to 11 July 2023 (during the hydrological year) is set at 479 mm, which is 15% less precipitation than the normal value for that period (561 mm).

SCIENTIFIC EVIDENCE SUGGESTS ACCELERATING MITIGATION AND DEVELOPING SOLUTIONS WITH SYSTEMIC IMPACT

The Intergovernmental Panel on Climate Change (IPCC) has completed the work it began in early 2022 in the working groups for AR6, and on 20 March 2023 published the "Synthesis Report, Climate Change 2023" to inform the "Global Stocktake" of the United Nations Framework Convention on Climate Change. The summary of the report's findings was reflected in the words of UN Secretary-General António Guterres: "our world needs climate action on all fronts: everything, everywhere,all at once".

DEMANDS FOR TRANSPARENCY ARE INCREASING

On 5 January 2023, the CSRD(Corporate Sustainability Reporting Directive), a corporate sustainability directive, entered into force. A few months later, the European Commission (EC hereafter) launched new draft European sustainability reporting standards,based on the previous work of EFRAG (European Financial Reporting Advisory Group). The public consultation period for these standards ended in July.

The EC published on 13 June a new package of measures to develop and strengthen the foundations of the EU's sustainable financingframework. The package includes: (1) a new legislative proposal on ESG rating agencies, (2) a recommendation on facilitating finance for the transition to a sustainable economyand the final Delegated Act on the Taxonomy criteria, described in more detail below.

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THE TAXONOMY EXPANDS

On 5 April 2023 the EC published thedraft Delegated Regulation defining the technical criteria for the selection of the fourremainingenvironmental objectivesof the Taxonomy Regulation (Environmental Delegated Regulation): (1) sustainable use and protection of water and marine resources, (2) transition to a circular economy, (3) prevention and control of pollution and (4) protection and restoration of biodiversity and ecosystems. In addition, to make it easier for companies to report according to taxonomy, the European Commission also launched theTaxonomy Compassand theTaxonomy Calculator. Alongside the Regulation, the Commission added amendments to add economic activities to the list of those that substantially contribute to climate change mitigation and adaptation objectives, and to clarify the reporting obligations for additional activities. All documents were adopted on 13 June 2023, following the publication of the Sustainable Finance Package.

EXPONENTIAL INCREASE IN DECARBONISED SOLUTIONS

On the other hand, and fortunately, solutions to climate change, such as the development of renewable energies, are making steady progress. The energy transition represents a new technological revolution that is unlocking more and more pathways to climate neutrality by 2050.

According to the recent RMI study, the rapid growth in the deployment of solar, wind and battery storage systems is indicative that by 2030, the global electricity system may offer ambitious trajectories towards net emissions neutrality. This exponential growth has placed the electricity system at a global tipping point, where the transition away from fossil fuels has become difficult to reverse. This suggests that demand for fossil fuels has peaked in the power sector and will be in decline by the end of the decade.

The target set at COP28 to triple renewable energy capacity by 2030 now seems within reach, provided certain hurdles are overcome. These include the need to invest in grid infrastructure, streamline permitting processes, improve market structures and increase energy storage capacity.

ACCIONA has been working this semester to incorporate all these new developments and develop a real competitive advantage through the Sustainability Master Plan 2025. The Plan has 4 main pillars: People at the Centre, Positive Planet, Integrate to Transform and Exponential Leadership.

Progress on the 4 pillars of the Sustainability Master Plan 2025 and its objectives are set out in this report.

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K E Y M I L E S T O N E S

• During the first 6 months of the year, the CAPEX aligned with the taxonomic criteria has reached 99%.
• The first ESG Budget, a non-financial planning tool that allocates specific resources to achieve sustainability objectives and facilitate strategic and informed decision-making, is implemented.
• The Volunteering Office begins its work, with the aim of promoting and coordinating the management of ACCIONA's Volunteering programme in the different areas of the company.
• A new Sustainable Impact Financing Framework is approved that includes green finance and sustainability-linked instruments, and introduces a Local Impact feature that, when combined with any of these instruments, creates a "Double Impact" structure.
• The analysis of the relationship between the company's business and nature is promoted through a methodological framework to identify and analyse natural dependencies, impacts, risks and opportunities at project level, following TNFD recommendations.
• With the appointment of Ms. María Salgado Madriñán and Ms. Teresa Sanjurjo González as new independent female directors, 38.46% of the board is now women, close to the 40% target of the PDS for 2025.
• The percentage of variable remuneration for executives linked to sustainability indicators is increased from 10% to 12.5%.
• The second Climate Risks and Opportunities Report (TCFD) is published.

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