In order to reduce the consumption of raw materials and prioritise the use of recycled, recyclable or reusable products, it is necessary to make progress on issues related to establishing eco-friendly designs and the consideration of environmental impacts throughout the life cycle of equipment and materials. This progress will only be possible through collaborations with other key actors (mainly our suppliers) while promoting innovation and technological development.

In this regard, we developed a methodology for analysing the life cycle of supplies to assess aspects related to the circular economy, climate change, and water footprint, as well as to encourage the acquisition of more sustainable supplies.

Our goal is to produce zero waste (0% waste to landfills), and we are close to achieving it. In 2023, 98.4% of the total waste was recycled, regenerated, or used for energy recovery.

However, our waste generation is related to the number of construction and maintenance activities of the transmission grid carried out each year, so it is difficult to predict its evolution. Furthermore, the development of these activities is essential for the security of the electricity system or facilities and even to reduce environmental risks, which is why they cannot be limited. For this reason, the group’s objectives are mainly focused on completely reducing waste whose final destination is a landfill site, promoting alternative means of processing.

Adequate equipment maintenance is carried out with strict procedures to reduce potential incidents. Furthermore, we have containment systems and emergency response protocols that allow us to respond promptly to accidental spills.

At Red Eléctrica substations, we have measures to reduce, control, or completely eliminate identified potential risks. It is worth mentioning:

• Soil and groundwater characterisation.
• Intensification of inspections at high-risk facilities.
• Blue Filtering Project: installation of hydrocarbon separator filters at the outlet of oil collection tanks.
• Definition of an internal procedure for the removal of insulating fluid from out-of-service fibre optic cables.

Our water consumption is very low, limited to domestic activities such as toilet facilities, non-industrial building cleaning, and garden irrigation, and is not currently considered a material issue for Redeia.

However, aware that water is an increasingly scarce resource and that this criticality poses a risk to society, the Company established the ‘Responsible Water Management Programme, which has been reviewed by the Company's main governing bodies. Within the framework of this programme, the company analyses trends in its indicators. Besides, it conducts annual audits of monthly consumption by facility to determine the origin of the water used, its main uses, and the existence of leaks or human error. This information serves later to identify the responsible consumption measures that make up the Responsible Water Management Action Plan, which are implemented in accordance with the established deadline and priority.

The Action Plan currently includes more than 140 savings measures to be implemented in all the Group's facilities in order to meet the 2030 goal of 6,5m³/ employee of Redeia. It includes:

• Automatic leak warnings.
• Installation of dual-flush cisterns, taps with timers, and flow meters.
• Automated drip irrigation with water sensors.
• Replacement of species with local ones.

Our suppliers are directly involved in our activities. Therefore, our contribution to sustainable development is closely linked to the selection and management of our suppliers. In this regard, we have identified potential criteria and requirements related to circularity and climate change to be included in our tenders. We have also developed our methodology for life cycle analysis (LCA) and prepared a matrix for assessing the LCA of supplies for their inclusion in future purchasing processes.

Furthermore, we reuse equipment and materials to the extent possible when they reach the end of their useful lives.

To be a proactive agent in the energy transition towards a zero-emissions model, advocating for the electrification of the economy and the efficient integration of renewable energy, through a robust and better-interconnected grid, as well as through the development and operation of energy storage systems.