2021 SUSTAINABILITY REPORT


Our sustainability approach


Our Sustainability Strategy is focused on five pillars integrated into the business strategy, which aim to carry out responsible operations and strengthen the Company's competitiveness in the long term.

"The pandemic has confirmed that business results must not only create economic value, but also integrate a triple impact assessment, which reflects the contributions to the environment, its value chain, its people and communities, always with integrity and with processes that ensure good governance.".

Santiago Martinez Tanoira
President of YPF Luz

PRIORITY ODS


Who we are


YPF LUZ is a leading company in power generation whose mission is to generate profitable, efficient and sustainable energy, optimizing natural resources to produce thermal and renewable energy and guaranteeing competitive energy solutions for its customers.

“2021 has been a year that once again confronted us with great challenges and opportunities. With a clear vision and following our values, we managed to supply electricity to the country and complete the projects we had under construction. We generate 8% of the country's electricity with an installed capacity of 2,483 MW.”

Martín Mandarano
CEO of YPF Luz


6
PROVINCES
397
MW RENEWABLE
2.483
MW³ INSTALLED CAPACITY
2.086
MW THERMAL
100
MW RENEWABLE IN CONSTRUCTION

Governance, ethics and integrity


"Compliance is not simply complying with what is required of us or abiding by the rules. Compliance is protecting our good name and reputation. It is key to protect our partners, customers and collaborators. It is key to continue fulfilling our dreams safely. Compliance is a work culture and our way of doing business".

Sebastián Torres
Chief Compliance Officer and Internal Audit Manager

COMPREHENSIVE
COMPLIANCE
PROGRAM

  • ISO 37001 Anti-Bribery Management Certification for 100% of operations.
  • Compliance Culture.
  • Compliance Channel.
  • 89% of staff trained in Compliance.
  • 60% of critical third parties trained in Compliance.

RISK MANAGEMENT

New matrix and system for comprehensive risk management

INADEQUATE INTERNAL PROCESSES, FAILURES IN THE SYSTEMS

DECISION MAKING, BUSINESS AND COMPLIANCE WITH GOALS AND KPIS.

REPUTATIONAL, COMPLIANCE, CORRUPTION AND MONEY LAUNDERING RISK.

FINANCIAL ECONOMIC, BUDGETS, TAXES, ADMINISTRATION AND ACCOUNTING.


ANTI-BRIBERY MANAGEMENT SYSTEM

ISO 37001:2016 Certification of our Anti-Bribery Management System for 100% of operations, without no conformities.

This achievement places YPF Luz among the few Argentine and international companies to obtain this certification at company level.


Economic performance




WE GENERATE ENERGY TO SUPPLY
3.200.000 HOUSEHOLDS

ECONOMIC RESULTS

USD 321M

EBITDA

+42,3% VS. 2020

USD +138M

investments

USD +441M

sales

[+46,4% VS. 2020]


OPERATIONS

2.483 MW

Installed capacity


INSTALLED POTENCY

84.1%

Availability

6.451 GWh

Power generated


GENERATION

1757,48 Kcal/KWh

Specific consumption

VALUE CHAIN

29
CLIENTS
33 %
Mkt SHARE MATER
902
SUPPLIERS
92 %
LOCAL SUPPLIERS
97
CONTRACTORS
2772
PEOPLE IN ACTIVITY


PROJECTS UNDER CONSTRUCTION

OWN
ZONDA SOLAR PARK

100 MW of renewable energy

THIRD PARTY
CLOSING OF ENSENADA BARRAGÁN

280 MW of renewable energy

In 2021 we began construction of the company's first solar park, which will be located in the province of San Juan, and whose first stage includes 100MW.

In addition, we are advancing the closure of the combined cycle of the Ensenada Barragán Thermal Power Plant, whose work is in charge of YPF Luz.

LEADING RENEWABLE ENERGY SUPPLIERS TO INDUSTRY

We continue to consolidate a portfolio of first-class clients, to supply renewable energies through long-term contracts that give them security and predictability. In 2021, 12 industrial clients such as Accenture, Mc Cain and Banco Santander joined.


Environmental performance



ENERGY USE

12%

energy generated from renewable sources

7

certified plants ISO 50001

71 millions

total energy consumption (in GJ)


EMISSIONS

3.924.586m

tn co2 equivalent direct emissions

0,322

GHG emissions

intensity

259.333

GHG emission reduction certificates


WASTE

367.674

waste generated

(in kg)

1686

recycled and reused materials

(in kg)


WATER USE

10.619

total water extraction

(in kton)

8176,55

Total water consumption

(in kton)

COMPREHENSIVE MANAGEMENT OF SURPLUS RESOURCES AND WASTE

In 2021 we introduced a new procedure to avoid and minimize the generation of waste, promoting the efficient use of all resources, the reduction at source and the valorization of surplus resources.



LOMA CAMPANA GREEN LUNG

Located in Añelo, Vaca Muerta, the Green Lung is a sustainable solution for the management of liquid effluents from the Loma Campana Complex. The lung is part of the productive process of electricity generation, in which 100,000 trees use 100% of the liquid effluents as irrigation.


Social performance



EMPLOYEES

353


collaborators

16


new hires

DIVERSITY

22%


employed women

25%


In leadership positions

TRAINING

38.400


total hours training

109


training hours per employee


10 GOLDEN RULES TO SAVE LIVES

HEALTH AND SAFETY

0


occupational deaths

1,00


handling index

0,38


accident frequency index

SOCIAL INVESTMENT

24.500

beneficiaries

USD 31.038,75

donations

USD 40.957,76

investment in

social activities

USD 134.252,58

environmental investment

ACTIVITIES

WE PLANT FOR THE FUTURE

TRAINING AND TECHNICAL ASSISTANCE PROGRAMME FOR 15 MUNICIPALITIES

13 ENERGY SEMINARS AND WEBINARS

9 SURVEYS AND ADAPTATION OF ELECTRICAL INSTALLATIONS

IDEAS FOR OUR COMMUNITIES

IMPLEMENTATION OF 4 PROJECTS PROPOSED BY EMPLOYEES

CORPORATE VOLUNTEERING

74

volunteers

331

hours of

volunteering

21%

participating

employees

PLANT FOR THE FUTURE

We implemented a training and technical assistance program to 15 municipalities in different provinces of the country, with focus on the ecosystem, the importance of native trees and strategies for correct planting, care and conservation.

IDEAS FOR OUR COMMUNITIES

It is a program in which we implement the projects presented by our collaborators. In 2021 we implemented 5 projects.

“These activities make us feel that our contribution helps those who need it most," said Andrea Cardoso, a volunteer with YPF Luz, during the painting day at the Mil Grullas Kindergarten in La Plata.