Relationship with stakeholders

To Ence, managing human capital is the basis for achieving the company’s strategic goals. Priorities related to human capital management are as follows:

• Development of a new framework of values and culture based on internal communication: The aim is that all employees are aware of their mission and their contribution to the company’s success, and that they feel like they belong in Ence’s team. Ascending and descending communication is encouraged through different mechanisms, paying special attention to the recognition of achievements and the satisfaction of our employees.

• Capacity building, professional development and talent retention: By strengthening our management team, leadership and result orientation are reinforced. This is supported by the supply of development opportunities through leadership programs and management skills. Managers acquire responsibilities in talent identification and preparation of succession for key positions.

• Improved management of labour relations for compatibility with the new strategic framework: Through training and flexible working conditions, seeking further technical training for employees and the company’s increased competitiveness.

• Continuous improvement of occupational safety and health: By introducing a corporate culture of safe behaviour in relation with operations, Ence wants to continue advancing towards its goal of zero accidents.

• Employee training has the essential goal of promoting their professional and personal development at all levels to improve their integration into the company and their commitment to our strategic objectives.

Training activities can be categorized as follows:

• Occupational safety and health
• TQM model and management tools
• Environmental education
• Managerial skills
• Technical skills

An important aspect of our employees’ professional development is performance evaluation, which is based in recognition for their work.

Performance management is based on an ongoing dialogue on goals, achievements, reinforcement and recognition, which evaluates not only “what is achieved” but also “how to achieve it”, “with which means” and “in what situations.” The process is carried out continuously throughout the year for all technical and organizational controls.

Ence conducts a working environment survey among employees, biannually. The survey aims to know the degree of commitment of the staff in each of the geographical areas and functions of the company, compare their progress, as well as determine action plans derived from the results in order to enhance staff’s satisfaction.

Ence rejects any kind of violation of human rights and illegal harvesting of forest resources. Therefore, Ence assesses its suppliers before starting a business relationship to ensure that the fundamental rights of workers and anyone concerned with getting the wood are respected and that the wood does not come from illegal logging or conflicting sources.

In addition, Ence follows a rigorous policy with the aim of preventing damage to archaeological heritage in Galicia and Asturias while carrying out our forestry activity. With this policy, the company wants to closely supervise the way the work is being done in mountains likely to contain remains of great historical and archaeological value, to such end, we are launching a series of activities aimed at promoting conservation.

Ence is committed to Customer-driven Orientation as one of the highest priorities defining our company’s daily activities, so that we strive for excellence in management.

In this regard, the sales department conducts a Customer Satisfaction Survey annually. It contains the opinions of our main customers, who are invited to assess, quantitatively and qualitatively, different parameters such as product quality, delivery, technical service or the response of our sales team.

On the other hand, Ence continues to work on the Voice of Customer project that began in 2011 and which also aims to meet the needs of customers from distinct viewpoints, to take appropriate steps leading to satisfy them. To this end, different members of the Ence team, going from Company Management, our Technical, Quality or Sales Department, regularly visit customers’ companies.

Said visits pursue a triple objective:

• Encourage mutual and personal understanding of work teams.

• Maintain direct contact with the production staff of customer’s factories.

• Respond to technical issues arising at the customer’s own operations centres.

Ence started a strategy in 2011 to increase its wood supply volume through direct purchase from forest producers’ associations.

Agreements signed with these groups go beyond the mere acquisition of wood and lay the foundation for building strong relationships of mutual benefit.

In fact, these agreements establish guidelines for collaboration on structural issues for the future of forestry sector, such as the management of forest crops, phytosanitary improvements, the sustainable management of eucalyptus stands or the provision of greater transparency in the timber market.

Proof of this are Ence’s efforts to promote good practices in relation to growing and obtaining sustainable forest management certifications. Ence conducts training activities for forest owners where it is present and where eucalyptus cultivation is particularly suitable. Such initiatives address key issues for sector development, such as the current situation of the timber market, optimal cutting moment, the importance of cooperation between owners and forest management certifications, and they also address the keys to develop exemplary plantations.

In addition, Ence shares with forest owners the advantages of the improved Eucalyptus Globulus plants, a result of decades of work and selection from the best eucalyptus specimens by carried out by Ence’s forestry research experts, which show 30% higher growth, or more than plants produced from seeds, provided that forestry and appropriate treatments are applied.

The relationship with the environment in which Ence operates is essential. Knowing the concerns and worries of local communities and all the groups that represent them is essential to ensure that they share and benefit from Ence’s good management.

In this sense, the company works to defend common interests and the interaction with other economic and/or cultural activities at our operations centres.

Ence’s forest management considers that devoting efforts and investing in resources is essential to preserve and promote the environment, preserve and protect species and habitats and defend our natural heritage.

See documentation on Sustainable Forest Management

Ence has a team of Investor Relations in order to maintain a constant dialogue with the financial markets including both equity shareholders, institutional investors and the portfolio of eighteen financial analysts who report regularly on the progress of the company at both the stock market and fixed-income accounts including bondholders, institutional investors and analysts, and other market actors such as the CNMV.

The aim of this department is to keep all participants in financial markets abreast of the company’s strategy, operational and financial results, main relevant events and corporate operations, where simple and effective communication is a key factor for Ence, which is committed to transparency in management.

Ence maintains a direct relationship with critical sector administrations (Ministry of Industry, Directorate General for Energy Policy and Mines, Autonomous Communities, Local Governments, National Energy Commission, REE, OMIE…) to proof to the satisfaction of such authorities, the great benefits of biomass management for society, and submit proposals -based on promoting biomass as an energy source- aimed at improving the socio-economic sphere of the peoples of regions in which Ence operates.

Ence has collaborated with the Ministry of Agriculture, Food and Environment to develop the new version of the “Reference Document on Best Available Techniques in the Pulp and Paper Industry” (BREF), within the framework of the development of the regulations on Prevention and Integrated Control of Pollution at European level.