"The commitment to sustainability must be linked to concrete objectives"

Jordi Garcia Tabernero leads Naturgy's sustainability strategy. As the company's general director of Public Affairs and Sustainability and vice-president of the Naturgy Foundation, he addresses the company's sustainability objectives from a broad perspective, with the environmental aspect as a priority, but also with a determined focus on social issues and good governance.

Society faces multiple challenges in these areas, and Naturgy works to address them both from within the company and through its Foundation, of which Garcia Tabernero is vice-president.

--- Naturgy places sustainability among its objectives.

--- The concept of sustainability is very broad, and sometimes, ethereal. At Naturgy, we have always wanted it to be a focused, concrete, and measurable concept. We work guided by the 2025-2027 Sustainability Plan, which sets a series of objectives and how to achieve them. It is a plan aligned with the company's Strategic Plan for the same period. There cannot be an honest commitment to sustainability in any company without concrete objectives and a roadmap associated with business objectives.

--- What objectives does this Sustainability Plan pursue?

--- We work based on ESG criteria, that is, with environmental, social, and governance objectives. For an energy company, environmental aspects are very important. Therefore, in climate matters, Naturgy has reinforced its Climate Transition Plan, which aims to achieve climate neutrality by 2050, considering all scopes of the carbon footprint and prioritizing 1.5ºC reduction pathways, where viable, and subject to the energy and regulatory policy of each country where it operates. In the social sphere, we promote a just transition, working on projects with local communities, fostering employability, and transferring our sustainability commitments to our supply chain.

--- Regarding this reduction, what is the starting point?

--- Currently, Naturgy has 170 renewable energy facilities in Spain, which generate the equivalent of the consumption of 2.3 million homes. We are aware that there is still a long way to go, but we are also a company that has known how to adapt to society's demands since it was founded in 1843.

--- How is progress being made on this path?

--- With concrete measures. For example, in 2018 Naturgy was the first company in Spain to close its coal-fired power plants. Another important milestone is the 27% reduction in total greenhouse gas emissions compared to 2017. All this thanks to the increase in installed renewable capacity, which has grown by more than 30% in the last three years. By 2027, 50% of our energy generation capacity is expected to be from renewable sources; and to achieve this, we have an investment plan of 1.2 billion euros in new infrastructure. As can be seen, our decarbonization objectives are clear, realistic, and measurable. We have always avoided any temptation of greenwashing.

--- What is your main commitment today in terms of decarbonization?

--- Although we have several lines of work, one of the most important commitments today is green gas, an emission-neutral gas. The Naturgy Foundation has carried out various studies that allow us to be optimistic about the development potential of green gas. It is pure circular economy, as it transforms livestock, agricultural, and urban waste into energy. If we used the resources of all Spain, 45% of the natural gas we consume today could be replaced.

--- With the added benefit of generating employment in rural areas.

--- This is another positive point. It is a new business that anchors population in the territory, because it generates jobs in areas that need them. It is estimated that at the state level, 2,300 plants could operate in Spain, generating 20,000 direct and 40,000 indirect jobs. It is a virtuous circle that benefits everyone. In addition, it can be implemented quickly, as it is very simple to adapt existing infrastructure, because all natural gas distribution facilities are compatible with green gas.

--- However, the deployment of biogas in Spain is far behind that of other European markets.

--- That's true. In central and northern Europe, this solution has been worked on for years. In Spain, until relatively recently, it had not been considered a real decarbonization alternative. Catalonia has great potential for green gas, and we are working hand in hand with the Generalitat on the development of various projects, and on regulations in line with the new needs of the sector.

--- And the role of green hydrogen?

--- It could be the great solution for long-term decarbonization, but today it is still a technology with high costs that needs public subsidies to take off. It reminds me a bit of the beginning of renewables a few years ago, which needed public money until the technology evolved and investment costs dropped. We believe that renewable gases can be a first step while green hydrogen arrives. Obviously, we participate in various projects at the state level, but our main bet, for now, is renewable gases.

"The Naturgy Foundation is our tool for social leadership"

--- Some speak of the electrification of the economy as the only path to decarbonization; we prefer to speak of technological neutrality. We advocate for an energy mix with wind, solar, renewable gases, hydrogen, nuclear, and natural gas. It is much more realistic and, without a doubt, helps to find better solutions to the so-called energy trilemma, that is, generating environmentally sustainable energy that is affordable for families and businesses, and that guarantees security of supply.

--- In addition to decarbonization, what objective does the Sustainability Plan set?

--- Our plan goes beyond the environmental scope. The commitment to people and diversity is also very relevant. The company is committed to having more than 40% women in management positions across the group by 2027; in Spain, that goal has practically already been reached by the end of 2024.

--- You also work in the social sphere.

--- We do so through Fundación Naturgy, whose strong social imprint is marked by the guidelines of the company's former president, Isidre Fainé, who wanted to give it a more social vision linked to energy, and which our current president, Francisco Reynés, has continued and reinforced today. Since then, we have incorporated programs to combat energy vulnerability and also training and employability programs in the energy sector. The Foundation, without a doubt, channels Naturgy's social commitment to promote a fairer, more sustainable, and inclusive energy model.

--- How are these initiatives concretized?

--- Since 2018, its initiatives have benefited more than 1.6 million people. The Foundation's activity has three main lines of action: the development of social programs to combat energy vulnerability, education and training for employment, and the preparation of studies and reports on topics of interest in the energy sector. Among other things, we work with third sector entities to help vulnerable families and promote the energy rehabilitation of their homes. We also provide training for families to save energy, and help them access the social bonus. We have developed various vocational training programs aimed mainly at groups at risk of vulnerability. I have a particularly good memory of the training to install photovoltaic panels that we did last year with 30 unemployed women.

--- Again, equality.

--- Yes, of course. Among others, we have promoted the Efigy Girls program, to foster female talent in STEAM training in the energy field from the school stage. And now we have launched the program Sumando Energías por Valencia, to continue responding to the effects of the DANA, with which we intend to help 40,000 people.

--- Also from the foundation?

--- Yes. The plan combines the energy rehabilitation of 600 homes of vulnerable families, the installation of solar energy in 40 schools and 15 social centers, the training of 300 unemployed people in green jobs, or environmental volunteering actions with our more than 1,000 volunteers in Spain. The objective is twofold: to reduce energy vulnerability and promote the sustainable recovery of the most affected municipalities. We are proud of the work of the Foundation. The Foundation is a tool for social leadership with which Naturgy tries to do what it cannot achieve as a company.