Transportadora de Gas del Sur S A : Sustaintability Report 2020

Sustainability Report 2020

energy that drives forward

tgs | Sustainability Report 2020

Table of Contents

Letter from the CEO3

Our work during the

COVID-19 pandemic 4

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We are tgs 11

14 tgs in figures

18 Economic performance and industry context

20 Our management model

22 Corporate Governance

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Sustainability 28

30 We build a sustainable brand

3 1 Contribution to Sustainable Development Goals

32 Sustainability Policy

33 Materiality Analysis

35 Dialogue with our stakeholders groups

40 Acknowledgements

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Businesses and value chain 42

44 Our Businesses

1. Integrity and safety of our ducts

1. Clients, dialogue and satisfaction
   60 Suppliers and contractors

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Our people 63

64 Our workers in figures

1. Recruitment opportunities
2. Benefits and compensations
3. Dialogue with our workers

71 Organizational development strategy

75 Occupational health and safety

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Environmental care 83

1. Commitment to environmental care

1. Environmental impact management
2. Environmental awareness and training

1. Responsible consumption of water

1. Water discharges and effluents
2. Waste management

1. Efficient use of energy
2. Generation of emissions

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Community 105

1. Our commitment to communities
2. Skills development

1 1 0 Support to local development

1 1 5 Dialogue with communities

1 1 6 Our contribution in a year of pandemic

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Future challenges 119

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About the report 123

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tgs | Sustainability Report 2020

Letter from the CEO

We are tgs | Sustainability | Businesses and value chain | Our people | Environmental care | Community | Future Challenges | About the Report

I am pleased to present -for the tenth consecutive year- tgs Sustainability Report, through which we share our commitment to sustainable development and present the economic, social and environmental performance of our company in the year 2020.

The COVID-19 pandemic hit the world in 2020, unleashing an uncertainty scenario that entailed a sani- tary, social and economic crisis of an unprecedented scale, both in the world and our country. In spite of these challenges, we continued to render our essential service, while honoring our commitment to safety, environmental care and health. We are proud to say that we have met the high quality and efficiency standards we have adhered to, as well as each of the sanitary regulations adopted by the national, provincial and municipal authorities.

I am grateful for the effort and commitment undertaken by our tgs team and their families to overcome the several challenges the year presented to us. Once again, we have proven to be a human team that is pledged to its work, making tgs a company that each and every day drives the energetic development and growth of our country.

In the operational field, the natural gas transportation segment was affected by the lack of tariff updating. In spite of this setback, we kept transporting -in a reliable and safe manner- over 60% of the gas consumed in Argentina and our main pipeline system satisfactorily met demand.

A further challenge we overcame was the operative and commercial performance of our processing gas

business carried out at our Cerri Complex, where - thanks to the prevention protocols we implemented and the efficient coordination of the different processes that interact with this business- we hit a historical annual record of 1,167,643 tons of natural gas liquids.

Turning to our firm commitment to be the main midstreamer in the development of the Vaca Muerta hydrocarbon formation, we achieved full operation of the pipelines and conditioning plant in Tratayén, project that required an investment of USD 260 million in 2018.

As every year, we honored the responsibility we have taken on to ensure the health and safety of our people and environmental protection, seeking to extend it throughout our whole value chain. To such pur- pose, we trained our suppliers and contractors to meet our standards.

We have strengthened our commitment to the com- munity, through the donation to the Ministry of Health of 68 million pesos in medical supplies and equipment destined to public hospitals throughout the whole country.

The sanitary emergency pushed us to speed up the digital transformation we had already started. Our previous accomplishments allowed us to swiftly adapt to the new scenario. We thus developed and implement-

ed digitization mechanisms, optimization of works and maintenance tasks and we also provided our workers with tools and devices to enable them to work from their homes.

I cannot praise enough the commitment of the 1,099 people that make our tgs team, who worked either remotely or in person at our facilities, respecting the implemented protocols, allowing us to step up to the challenge put forward by the pandemic and meet the goals outlined for the year 2020.

I invite you to read on the pages of our report, prepared in line with GRI standards and the principles of the Global Compact. We hope that it contributes to promote our dialogue with all our stakeholders, with a view to a better performance of both tgs and our country.

Oscar Sardi

Chief Executive Officer

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tgs | Sustainability Report 2020

We are tgs | Sustainability | Businesses and value chain | Our people | Environmental care | Community | Future Challenges | About the Report

Our work during the COVID-19 pandemic

Our operations are essential for the normal development mainly the public natural gas transportation service that families as well as thousands of industries and small and

of the Argentine energy sector, supplies energy to 6.2 million medium enterprises.

Therefore, in spite of the pandemic, we never stopped our operations and continued working uninterruptedly throughout the 2020.

In the face of COVID-19, we had to adapt our processes to work more efficiently, strictly following maximum safety protocols, seeking to meet our outlined goals while at the same time safeguard the health of our employees, suppliers, clients and their families. We would like to thank and acknowledge our whole team for the great effort they are making to continue supplying energy to our entire country.

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tgs | Sustainability Report 2020

We are tgs | Sustainability | Businesses and value chain | Our people | Environmental care | Community | Future Challenges | About the Report

Our People

We take care

We have developed a preventive action plan to look after our workforce, suppliers, clients and their families:

• We created a COVID Contingency Committee, made up of leaders in charge of all tgs' businesses. This body is still working on overcoming the several operative challenges that arise.
• Through the Occupational Health area, we have outlined an overall procedure for the pandemic. We have also developed response algorithms for suspected cases of COVID-19 at all facilities.
• We ensured the early isolation of the staff with highest health risks in terms of the pandemic.
• We devised a psychosocial questionnaire to assess the impact of the pandemic on our workers, with the support of psychologists who contacted people based on the received answers.
• We directly and permanently assist our workforce. We provide them with training and information on the care, adequate distancing measures, the need to understand the infection process and close contact. Additionally, we instruct them on how to proceed in the face of needs, doubts or medical emergencies.
• We have implemented an anti-flu vaccination campaign for our workforce at higher risk and staff that works on site at the Cerri Complex, the Gutiérrez Operative base and Galván Plant.

• We have distributed face masks, mouth covers and alcohol gel to all the operative personnel and we conduct a temperature check at the entrance to facilities with thermal imaging cameras, infrared thermometers and non-contact thermometers.
• We developed an application that must be presented before access to any facility, which we internally refer to as COVID-19 Sworn Statement, reaching not only our own workforce but also contractors and any other person who enters tgs/Telcosur.
• We have set up breathing isolation rooms for
  staff with suspected cases of COVID at every tgs facility, as well as a double-circulation system at the Cerri Complex.
• To deal with the heavy traffic of national and international trucks that is involved in the rendering of our propane and butane dispatch service from our Galván Plant, we hired a specific nursing team who checks the health of 100% of the incoming drivers.
• We implemented digital medical prescriptions for tgs' workforce.
• We adapted the refectories of all the facilities that provide lunch services, placing acrylic separators that allow social distancing. At contractor companies' offices and refectories, we conduct audits to assess compliance with protocols.

• We rearranged transportation schemes for the rotating shifts personnel. We use more spacious vans to ensure social distancing during trips to plants, reducing seating to a 50% of their total seating capacity.

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