Sustainability report 2014

Chairman’s message 5Introduction – about our sustainability report 7Activity of tigáz 8eni 9

Sustainability: from principles to business processes 12Corporate governance system, board of directors and the statutory auditorscommittee 13Shareholding 15Internal audit system 16The role of stakeholders (the interested parties) and fairness 17

The value of relationships 18Our approach 18The system of relations 19Managing relations 19Professional partnerships 20

The relations with territory 22Integrity and transparency 22Procurement - relations with suppliers 22Spending for the territory 25Relations with educational institutions 27

Relations with customers and consumers 28Corporate and marketing communication 29Enhancing sustainability for customers and consumers 32The promotion of energy efficiency and responsible behaviors 32Relations with consumer associations 32Customer satisfaction surveys 32Contact center service 33

People 38Safety 38Health 40Employment 40Relations with trade unions 42Equal opportunities 43Training 44Involving employees 45

Environment 46Environmental management system 46Energy efficiency 46Atmospheric emissions 47Water management 47Waste management 47

Table of Contents

Chairman’s message | 5

Dear Reader!

tigaz group is convinced that “Sustainability” means to create value for stakeholders, utilize

resources in a way that they remain available for stakeholders and future generations while

taking into account the interests of individuals, communities and environment. These are the

values that have influenced our approach and mind set in the past two years.

As for sustainability, the company had to encounter major and sever challenges so as to keep

up sheer operation. There have been very strict regulations introduced with quite unfavor-

able impact on the energy industry since 2010 and as part of this process the tariff reduction

campaign, the recognition or rather the lack of the recognition of real operation costs hit rather

hard the gas sector as a result of which financial sustainability has almost reached the virtual

edge of elimination.

The core values of our sustainability approach are the health and safety of our employees, the

guarantee of supply security and the protection of environment. In line with the guidelines set

forth by eni, the owner of tigaz group and one of the leading integrated energy companies in

the world. The most important asset for tigaz group is “people” both customers or local com-

munity and employees. Our values and the achievement of our sustainability objectives have

stood above the hardships of the past two years or the unfavorable regulatory environment

and the company have delivered quite good results as to this effect.

The brand new “Training field” of tigaz group has started its operation in Miskolc in 2013. The

key function of the training field is to enhance safe operation as well as higher safety for

people. Experience gained in the training field facilitates internal development, the professio-

nalism of workers and the safety of customers. Hundreds of workers have been trained in the

training field and we could also train 350 officers in cooperation with the National Catastrophe

Management Office. The complexity of the gas industry in general requires high end technology

and quality skills, therefore this quality and volume of professional training is quite an achieve-

ment for the company and has invaluable impact on safety of operation.

tigaz group has organized the HSE Days (Health, Safety, Environment) roadshow each year

since 2013 which promotes among other issues transport safety, catastrophe manage-

ment, health awareness, stress management, physical education, first aid, the prevention of

incidents and accidents as well as near misses, the use of safety accessories, environment

protection and energy awareness. More than 85% of our employees attended the roadshow in

the last two years.

As a result of these two initiatives and some other efforts the company achieved that the num-

ber of workplace accidents reduced to one single incident in 2014.

Society becomes more and more mobile and expectation for access to safe and continuous

service anytime and anywhere is on the increase. So as to address this expectation the com-

pany with regard to distribution system development and network operation, partially due to

the new training field, has taken over and employed the latest and most modern technologies.

Innovation for customer service was also implemented. tigaz group launched its smart phone

application in 2013; the application makes the most important and frequented customer

chairman’s message

Fabrizio Dassogno

About our sustainability report | 7

tigáz group has published its sustainability report on company operations each year since

2011. The purpose of the report is to make company operations transparent through guidelines

and indicators and to demonstrate how company activities comply with fundamental interna-

tional principles such as human rights, equal opportunities, appropriate working conditions,

environmental awareness and anti-corruption efforts.

The report was compiled with the objective to present entirety, accuracy, transparency, timeli-

ness and sustainable synergies. The sustainability report contains data on economic perform-

ance of the tigáz group but the key figures in this respect are retrievable from the Consolidated

Statements and the Balance Sheet. The company publishes both the sustainability report and the

annual report in the corporate website (www.tigaz.com).

The sustainability report covers the activities of 2013 and 2014 in a consolidated manner with

occasional prospect to future challenges.

The source of data and information disclosed in the sustainability report root to the following

documents:

• Balance Sheet,

• Integrated Certification System (IIR) in place with tigáz group,

• information supplied by the affiliates and business units of tigáz group.

Although the sustainability report in its full content is primarily a report to our shareholders

and investors, in particular the responsible investors and sustainability analysts, we try and

facilitate the involvement and understanding of all stakeholders and interested parties.

tigáz group intends to continue common thinking and cooperation with all stakeholders

therefore we cordially invite all parties to share their views, experiences and ideas with us by

submitting them to the e-mail address kommunikacio@tigaz.hu.

Director, External Relations and General Services

Lorenzo Maina

about our sustainability report

Lorenzo Maina

service functions available and conveniently accessible through mobile devices.

One of the key environmental impacts of the operation of tigaz group is methane emission due

to leakage. Wintertime there must be higher pressure in the distribution network to ensure

that gas reaches households, however higher pressure may cause leakage. Adaptive winter/

summer operation (e.g. lowering pressure in the network in summertime) has become a regular

feature in our operation area by 2014 and the list of residential estates where adaptive gas

pressure management is available increases continuously. As the prevention of gas leakage,

the instruments tigaz group uses have become more modern. As a result of these develop-

ments our emission indexes have improved considerably.

The improvement of waste management continued and our operation produces less waste

than ever before and the recycling of waste has become more efficient.

Similar to past years, tigaz group was ranked No. 1 in terms of net sales in Hajdú-Bihar County

in 2013 and 2014 in the records of the Chamber of Commerce and Industry of Hajdú-Bihar

County. It clearly indicates tigaz group generates a lot of business for regional economy

through supplier relations with local small and mid-size businesses and has a major impact on

employment through the saving or creation of new jobs.

2013 and 2014 was rich in achievements and acknowledgments for tigaz group.

Transparency International conducted a survey among the TOP50 Hungarian corporations as

to anti-corruption and transparency of business ethics. tigaz group was ranked among the TOP

and was named the best within the gas sector.

The Association for Women’s Career Development in Hungary ranked tigaz zrt. to be the TOP3

Best Women’s Workplace in the category of corporates with 250+ employees.

“Energy Connects Us”, the corporate social responsibility program of tigaz group won the

Ruban d’Honneur award at the European Business Awards, one of the most respected awards

in Europe, and was acknowledged to be among the TOP10 corporates in Europe in the category

of Corporate Sustainability and Social Responsibility.

For the short term, our objective is to embed sustainability more into the corporate identity of

tigaz group. As to this achievement, beyond the maintenance of our level of professionalism,

the transparency of our operation is essential as well as the fact that sustainability must

become a customer experience. We are convinced our company has the ability, society is more

and more open to this issue and our customers trust us, all of which will help us to reach our

objectives.

Chairman

Fabrizio Dassogno

8 | Sustainability report 2014

In terms of customer number and the volume of

natural gas sold, tigáz group (www.tigaz.com)

is the market leader piped natural gas service

provider in the country selling and distributing

piped natural gas exclusively within the admin-

istrative territory of Hungary.

The scope of tigáz trademark extends to em-

ployment, HR, business and investor relations,

legal and corporate issues, sustainability and

corporate social responsibility, business de-

velopment and innovation, as well as technical

and network development.

The management structure of tigáz group

ensures flexible responses to changes in cus-

tomer expectations, market challenges and a

changing regulatory environment in a timely

manner, ensuring state-of-the-art, high stand-

ard and efficient service to customers while

guaranteeing continuous security of supply.

The company is managed by directors under

the leadership of the Chairman of tigáz group

(business, finance and controlling; customer

relations; human relations, organization and

information technology; gas purchase and

risk management; external relations, procure-

ment and facility management; sales and com-

merce; legal and corporate affairs; network de-

velopment and operations), while the Limited

Liability Companies are headed by Managing

Directors.

The mission of tigáz group is to provide securi-

ty of supply with maintaining safety at work all

times and under all circumstances, to ensure

high standard services to customers and to

enforce environment protection, sustainabil-

ity and corporate social responsibility.

tigáz group (www.tigaz.com/company/tigaz-

group) provides universal natural gas services

in Budapest and in 11 counties throughout

Hungary (Bács-Kiskun, Borsod-Abaúj-Zem-

plén, Csongrád, Fejér, Hajdú-Bihar, Heves,

Jász-Nagykun-Szolnok, Komárom-Esztergom,

Nógrád, Pest and Szabolcs-Szatmár-Bereg),

covering one third of the national territory of

the country (www.tigaz.com/information/uni-

versal-service), while being capable of provid-

ing natural gas supply services to customers

in the entire territory of the country.

tigáz re-engineered its commercial and natural

gas distribution activities in July 2007. tigáz-

dso kft., a fully owned subsidiary of tigáz zrt.,

is in charge of gas distribution and network

operation (www.tigaz.com/company/tigaz-

group/tigaz-dso) and universal service as well

as free market natural gas trading operations

are provided and offered by tigáz zrt.

tigáz gepa kft. (www.tigaz.com/company/

tigaz-group/tigaz-gepa), the fully owned sub-

sidiary of tigáz zrt. deals with the recondition-

ing of diaphragm gas meters, individual gas

metering and pressure regulating examina-

tions, detection of illegal gas off-taking meth-

ods, calibration and renovation of metering

instruments to be used in the gas distribution

networks, beside conducting maintenance

works on pressure regulating stations owned

by tigáz zrt. customers, for which purposes

subcontractors are employed. Additionally

tigáz gepa kft. provides logistics functions to

the group and – also with the involvement of

a subcontractor – carries out digitalization of

the group correspondence and management

of electronic administration.

Activity of tigáz

Activity of tigáz | 9

eni

eni (www.eni.com) is one of the most impor-

tant integrated energy companies worldwide.

It is firmly committed to growth in oil and gas

exploration, transportation and commerce.

eni with a shared capital of EUR 4 005 358 876

is one of the most important energy compa-

nies in the world. Key activities include oil and

gas exploration, production, transportation

and commerce.

Its operations are characterised by high level

of competency in all areas, and the company

has a vital role in the international market.

eni is listed on the Milan and New York stock

exchanges and operates in approximately 85

countries worldwide with nearly 83 000 em-

ployees.

Key objectives include to create added value to

shareholders by continuous development, to

provide high standard services and products

to Customers with reasonable pricing struc-

tures and to pay special attention to employee

needs. Commitment to sustainable develop-

ment is indicated by careful consideration of

environmental impacts of operations and the

development and deployment of new and more

efficient technology.

Operating data of tigáz group 2012 2013 2014

Gas sales (Mm3) 2 029 1 856 1 552

Gas distribution (Mm3) 2 282 2 171 1 916

Opreating profit – EBIT (MFt) -37 352 -15 374 -6 406

Profit after taxes (MFt) -39 101 -21 418 -13 101

Gross investment (MFt) 6 299 4 955 4 266

Number of consumers 1 245 783 1 203 594 1 191 534

Universal Service 1 239 133 1 196 798 1 187 825

- Household 1 172 263 1 130 982 1 122 732

- Non-household 66 870 65 816 65 093

Free market 6 650 6 796 3 709

Municipalities supplied (nr) 1 094 1 093 1 093

Length of pipelines (km) 33 627 33 676 33 699

Number of employees 1 549 1 522 1 424

headquarter, Hajdúszoboszló

sea oil exploitation

10 | Sustainability report 2014

Corporate strategyThrough our concerted strategic efforts in

2013 and 2014 the tigáz group managed to

keep its market leading position and remained

Hungary’s pipeline gas supplier with the larg-

est number of customers in this country. The

economic result (an abnormal loss in 2012,

due to extraordinary budget operations, pro-

gressively decreasing) still shows negative

values owing to the extraordinary regulations

affecting sales tariffs and recognized costs,

to the uncertain macroeconomic and market

situation and to the special taxes on the sec-

tor. The company pays particular attention to

boosting our performance in health, safety,

environmental awareness and to the sustain-

ability of our operation. Our medium term goal

is to become an increasingly agile organiza-

tion through taking growth opportunities and

adapt our products and services to consum-

ers’ needs and also to increasingly automate

our processes.

Missiontigáz as a reliable and client-oriented gas dis-

tributor and supplier provides high-quality,

tailor-made services for households, small and

mid-size businesses and companies.

tigáz is a major gas supplier in Hungary and a

company with traditions; as such, it keeps hav-

ing a remarkable impact on the economy and

the industrial culture of its operation area, cre-

ating opportunities for people, communities

and local businesses.

Commitment and competences of tigáz em-

ployees, combined with the use of advanced

technologies and investments, can be consid-

ered as a guarantee of efficiency and sustain-

able operation.

Activity of tigáz | 11

Hr-strategyOne of the key challenges facing our sustaina-

bility strategy lies in human resource manage-

ment; therefore the tigáz group’s HR strategy

plays a profound role in the attainment of our

sustainability objectives.

The tigáz group’s HR strategy from the point of

view of the company:

• Efficient company – continuous optimizing

of the personal type costs in comparison to

the company’s sales revenue.

• Competitive company – competitive edge

with human capital: in training-develop-

ment and career management.

• Energized company – a colorful, healthy

successful community.

The tigáz group’s HR strategy from the aspect

of the employees:

Development and continuous technical/pro-

fessional training of the employees and pro-

vision of the HR tools required for their imple-

mentation.

• Employer brand building: We create a liv-

able and likable work place with which our

employees are satisfied.

• Equal opportunities: An objective selection

system is applied in choosing individuals

for the various positions, focusing prima-

rily on the candidates’ qualifications and

suitability for the tasks concerned. tigáz

zrt. won the title “Best Workplace for Wom-

en, 2013, 3rd. position” in the employee

category of more than 250 employees.

• Selection: We create a truly colorful work-

place by maintaining a healthy level of

internal succession and by exploiting op-

portunities for atypical employment. At the

tigáz group some 2.5 and 2.8 % of the em-

ployees worked in atypical jobs (e.g. home

office) in 2013 and 2014, respectively.

• Agreements: We create transparent, flex-

ible and reliable frameworks. We maintain

a balanced relationship with the employee

interest representing organizations and

strive to standardize employment con-

tracts.

• Remuneration: We have introduced a trans-

parent, standardized job model reflecting

the true value of the jobs and positions.

tigáz group continuously updates the

wage category system.

• Training-development, organization devel-

opment: We provide high quality resources

for the training of our employees. A signifi-

cant proportion of the necessary training

activities is secured from in-house re-

sources. We put in place our internal trainer

system, which has, since 2014, been pro-

viding training for other enterprises as well,

thanks to its high quality and effective-

ness.

• Work and private life: Our highly energetic

and balanced employees play a key role in

the effectiveness and success of the com-

pany. tigáz group operates an up-to-date

stress management system for employees

exposed to stressful situations.

• Human resource management: During nec-

essary labor rationalization the company

tries and prevents employees from nega-

tive impacts as much as possible and the

procedure is managed in compliance with

legal regulation and ethical issues. The

company makes employees aware of the

fact that competitiveness in the labor mar-

ket is everyone’s own responsibility and

consultancy for them as the issue is also

provided.

changing household meter

12 | Sustainability report 2014

sustainability: from principles to business processes

At the core of tigáz group activities stand cus-

tomers, and full compliance with their needs

as well as investor expectations. The company

intends to gain appreciation of consumers, in-

vestors, owners and the environment through

its business achievements based on effective,

economic and high standard gas distribution

and gas service provider operations.

Access to gas supply services is available for

customers through the application of modern

means of technology using safer and safer

systems. tigáz group is committed to the pri-

ority of sustainable development in the area of

its operation including the issue of energy ef-

ficiency, energy saving, the protection of the

health and safety of employees, the local com-

munity, those in contract with the company,

and consumers as well as the preservation of

environment.

Highly trained and committed employees and

experts, whom tigáz group esteems as its core

assets, are the key to development.

The objective of the company is to create value:

Under the Integrated Management System

the company defines measurable goals and

programs, monitoring their implementation. In

order to continuously develop the functionality

and efficiency of the Integrated Management

System, customer, employee satisfaction and

efficiency of corporate operations are meas-

ured and analysed on a regular basis.

Service security, competency, continuity,

protection of the environment are all secured,

which is a key to consumer satisfaction. The

company operates an integrated and single

evaluation and reporting system which facili-

tates fact based decision making and sustains

the processes of quality assurance, environ-

mental management, Health, Safety and En-

vironment management system processes in

harmony with the operation of intermediary or-

ganizations all dedicated to meet stakeholder

expectations.

Compliance to legal and other types of regula-

tions is a fundamental and essential element

of the Integrated Management System.

“OUR SERVICE IS A VALUE AND THIS VALUE IS OUR FUTURE!”

Sustainability: from principles to business processes | 13

Corporate governance system, board of directors and the statutory auditors committee

A properly managed company must have a

long term vision which integrates corporate

social and environmental responsibility with

efforts aiming at risk assessment and future

challenges.

The fundamental principles of tigáz group cor-

porate governance system are determined by

the governing guidelines and policies its main

owner, eni group, as a whole. Compliance to the

owner guidelines and policies is ensured by the

Board of Directors.

Management system

The documentation structure of tigáz group

Integrated Management System (IMS) was set

up in accordance with the standard require-

ments, and is associated with the governance

and management system model of the eni

group.

Beyond the competition to ensure economic ef-

ficiency and effectiveness, the company aims

at establishing and maintaining mutually ben-

eficial relations with suppliers. Best practice

principles, standards and solutions are applied

in order to prevent health, safety and environ-

ment incidents at the workplace, to avoid envi-

ronment pollution and injuries and impairment

of health. Their efficiency is further enhanced

by setting up and securing safe workplace

environment and infrastructure meeting ergo-

nomic needs of employees, and by strengthen-

ing corporate social responsibility.

All tigáz group employees commit to work on

the implementation of this policy.

Management systemsThe company introduced an Integrated Man-

agement System in November 2011. (The qual-

ity assurance system pursuant to the stand-

ard No ISO 9001:2008/MSZ EN ISO 9001:2009,

the environmental management system pur-

suant to the standard No ISO 14001:2004/

MSZ EN ISO 14001:2005, and the Health and

Safety system pursuant to the standard OH-

SAS 18001:2007/MSZ 28001:2008 are main-

tained and continuously developed as an In-

tegrated Management System.) The renewal

audit of the Integrated Management System

certificate was successfully accomplished in

October 2014. Certificates furnishing evidence

to this effect are accessible on the respective

website of each of the three companies.

14 | Sustainability report 2014

Activities of individual business units are con-

tained in the Organization and Operation Codes

(OOC), eni regulatory tools, as well as the proc-

ess descriptions and instructions of the Inte-

grated Management System.

The concept of tigáz group Integrated Manage-

ment System is illustrated by the IMS process

model.

Essential to transparency is the visibility of the

governance model followed by tigáz group. To

that effect the company provides information

on its websites about the actual organizational

structure:

• tigázzrt.

- www.tigaz.com/company

• tigáz-dsokft.

- www.tigazdso.com/company

• tigázgepakft.

- www.tigazgepa.hu/tarsasagunk

Sustainability: from principles to business processes | 15

The Statutory Auditors Committee consists

of three members. Appointment of members

to the Statutory Auditors Committee is regu-

lated by Section 7 of the Articles of Association

which also ensures the presence of an employ-

ee representative in the Statutory Auditors

Committee.

The tigáz zrt. Statutory Auditors Committee

has a meeting at least four times a year: four

and five meetings were convened in 2013 and

2014, respectively. Additionally, members are

invited to the meetings of the Board of Direc-

tors with consultation rights.

tigáz-dso kft. Statutory Auditors Committee

also has regular meetings: three and five meet-

ings in 2013 and 2014, respectively.

tigáz gepa kft. Statutory Auditors Committee

had two meetings throughout the year 2013

and one in the first half of 2014. Following the

endorsement of the 2013 annual report of the

company on the business year the mandate of

the Statutory Auditors Committee expired and

it was not extended. Correspondingly, no Stat-

utory Auditors Committee exists at the time

being at the company.

The remuneration of the chairman of the Board

of Directors, the members of the Board of Di-

rectors, the chairman of the Statutory Auditors

Committee and the members of the Statutory

Auditors Committee is decided upon by the

Shareholders’ Assembly, and by the sole mem-

ber in the case of tigáz-dso kft.

Board of directors and the statutory auditors committeeThe central body of the corporate governance

structure in place at tigáz zrt. is the Board of

Directors. This body is in charge of the defini-

tion, application and update of rules pertaining

to corporate governance, of compliance with

effective laws and regulations, for the determi-

nation of the strategic guidelines of the compa-

ny, and of the review of supervision and control

over corporate operations.

As to certain issues the authority of represen-

tation of the company was transferred by the

Board of Directors to the Chairman, as well as

the authority to take all arrangements neces-

sary with respect to the scope of activities

of the company except those referred to the

jurisdiction of the Board of Directors or the

Shareholders’ Assembly by the law or the Arti-

cles of Association. Furthermore the Board of

Directors assigned the right of company man-

agement to the Chairman except those non-

transferable rights which are associated with

the jurisdiction of the Board of Directors.

The Chairman summons the meetings of the

Board of Directors, specifies the agenda, and

ensures that members of the Board of Direc-

tors receive prior information related to the

topics on the agenda and on which the Board of

Directors is to deliver a decision.

The Board of Directors consists of 5 members:

the Chairman and four members, who are not

involved in the executive management of the

company. Appointment of members to the

Board of Directors is regulated by Sections 4

and 6 of the Articles of Association. The Board

of Directors is required to hold meetings at

least three times a year: the Board was con-

vened three times in 2013 and 2014 respec-

tively, and additionally a number of written

voting procedures were also conducted.

Shareholding

Operative activities of the company in 2012

were substantially aggravated by the regula-

tory environment, a number of new pieces of

legislation were proclaimed which related to

gas supply, in particular to recognized gas pro-

curement prices and the practically frozen US

(Universal Service Provider) tariff rates, the

crisis tax, which all contributed to a substantial

financial loss to the group. In the 2013-2014

period the so called “overhead cost reduction”

was implemented with a result of an aggregate

25% reduction of retail prices for piped natural

gas services in the universal service provision

sector, utility tax was introduced, and a great

number of new regulations were born which

all affected the recognized costs of operative

activities, and which, in aggregate, had sig-

nificant additional negative impacts on tigáz

group profits.

In spite of this negative external regulatory en-

vironment and the economic crisis tigáz group

continued to operate consistently in 2013-

2014 to achieve its following key objectives: to

render company operations more efficient and

successful and to maintain the market leader

position in the Hungarian market with respect

to the natural gas sales activities (universal

services and commerce).

Rooting from the ”Sarbanes Oxley Act”, US leg-

islation, eni as the majority shareholder had to

establish a control system in compliance with

the SOA requirements. Activities launched in

former years in this issue were continued.

Board of Directors of tigáz zrt.

as of 31.12.2013 as of 31.12.2014

Fabrizio Dassogno (chairman)

Fabrizio Dassogno (chairman)

Cristian Signoretto Federico Regola

Marco Diotti Ilaria Azzimonti

Scipione Chiala Paolo Bossola

Mauro Rinaudo Roberto Albergante

Statutory Auditors Committee of tigáz zrt.

as of 31.12.2013 as of 31.12.2014

Roberto Albergante (chairman)

Fausto Salvador (chairman)

Alessandro Caporale Dr. Nagyné Dr. Stieber Ilona Tünde

Varga Gyula Varga Gyula

Statutory Auditors Committee oftigáz-dso kft.

as of 31.12.2013 as of 31.12.2014

Madarászné Csikász Márta (chairwoman)

Fausto Salvador (chairman)

Alessandro Caporale Jacsmenik Gyula

Patakvölgyi Árpád Patakvölgyi Árpád

Shareholders

eni S.p.A.

other shareholders

97.88%

2.12%

16 | Sustainability report 2014

Internal audit system

tigáz group is committed to set up and oper-

ate an internal audit system to control assets,

organization structure, corporate instructions,

rules and regulations in order to ensure suc-

cessful and correct business administration

in line with the objectives defined by the Board

of Directors. This control system is embodied

in the process of identification, assessment,

management and monitoring of main risks, as

well as by the creation of the appropriate infor-

mation flow channels to ensure exchange of

information.

The company holds a certified Integrated Man-

agement System since November 2011 (here-

inafter referred to as: IMS), complying with

the requirements laid down in the Hungarian

standards MSZ EN ISO 9001:2009; MSZ EN ISO

14001:2005; MSZ 28001:2008/OHSAS 18001:

2007.

With the operation of the IMS an effective ex-

ecutive management support tool was im-

plemented that provides eligible information

necessary to monitor the company operation.

IMS application areas include the entire scope

of activities covered by tigáz group, the group

headquarters (Hajdúszoboszló) and sites.

In order to verify compliance with audit criteria

the company carries out continuous, system-

atic, independent and documented internal

IMS audit procedures.

In 2013 and 2014 respectively 221 and 143

audit procedures were conducted at tigáz

group carried out by a 45 strong internal audi-

tor team. Quantitative changes in internal au-

dits are justified by the concentrated activity

of targeted process reviews.

In the course of such audits 0 significant, 2

non-significant deviations and 109 comments,

10 significant, 35 non-significant deviations

and 668 comments, and 5 significant, 94 non-

significant deviations and 297 comments were

revealed in the years of 2012, 2013 and 2014,

respectively.

Handling and closure of deviations take place

on an ongoing basis in accordance with a de-

fined schedule through a so called deviation

management system that provides a solution

to record keeping of handling deviations de-

tected during the various examinations and

audits by providing a set of roles and associ-

ated authorizations.

The purpose of deviation management:

• Record deviations explored during the

various examinations and audits within the

group of companies and to support correc-

tive actions and planning preventive meas-

ures.

• Ensure the monitoring of the elimination of

the deviations revealed and process moni-

toring, supporting reports and accounts to

the group managers and the owner.

Internal audit process

Identification ofdepartments forinternal audit

Internal audit –opening meeting

Revision ofprocedures anddocumentation

Performinginternal audit

Internal audit –closing meeting

Drawing upinternalaudit report

Sustainability: from principles to business processes | 17

The role of stakeholders and fairness

In tigáz group operations and relations

management priority is given to ensure that

the company conducted business activities

with maximum level of awareness and

commitment, in compliance with the relevant

applicable law and in line with the most

stringent norms of ethical business conduct.

The internal system of regulations at tigáz

group was developed accordingly taking into

consideration the regulatory system of and

the requirements laid down by the main owner.

In order to get acquainted with, ensure proper

application and compliance with the rules

at the company employees regularly attend

trainings. Suspected cases of non compliance

can be reported, investigated and monitored

through clear cut processes. Maintaining

compliance is ensured through continuous

internal control. The Code of Ethics and Model

231 are the main pillars to ensure compliance

(www.tigaz.com/company/model-231).

The Code of Ethics is a summary of compliance

requirements by the company, laying down

shared values of tigáz group, which is also a

pledge to the reputation of the company. The

Code of Ethics applies to everyone within the

group, including employees and members of

the Board of Directors. Additionally, contracted

tigáz group partners must become acquainted

with and adopt such values in the course of the

contract award process.

Employees must go through continuous train-

ing to be up-to-date with the contents of the

Code of Ethics and a pore-defined group of

employees must attend anti-corruption and

conflict of interest online courses. In 2013

and in 2014 326 and 161 employees attended

training on the Code of Ethics in the e-trainer

system. New recruits of the company receive

ongoing training corresponding to their respec-

tive jobs and responsibilities.

Additionally, the company provides appropri-

ate training to employees working in an envi-

ronment exposed to compliance and risks of

abuse in the field of anti-corruption conduct,

due diligence process of contracted partners

and the rules pertaining to giving or receiving

gifts.

Factual or suspected unethical behaviors can

be reported to an independent dedicated watch

structure according to a written whistleblow-

ing procedure. Both documented violations of

the Ethical Code and abuses in whistleblowing

are prosecuted according to the company’s

disciplinary regulations.

18 | Sustainability report 2014

the value of relationships

tigáz group pays special attention to stake-

holder relations. Long term, reliable and per-

manent relations are essential to effective and

constructive partnership for any company.

tigáz group makes efforts to establish a solid

and strategic network of relationships with

stakeholders. Therefore the company is com-

mitted to promote sustainability principles to

stakeholders and in particular among its cus-

tomers and consumers, employees, suppliers,

business partners, organizations, beyond a

common understanding of shared values, ob-

jectives, trust and respect.

All in all, tigáz group is confident that both

global and local challenges can be success-

fully overcome by cooperation including state

administration, private companies and civil

organizations.

The network of relations is essential to tigáz

group, since it provides opportunity to inter-

active dialogue and to learn the expectations

regarding tigáz group, to discuss emerging

problems and issues, to provide an appropriate

background to common thinking, and to the col-

laboration in the building of sustainable future,

as well as to development and improvement of

cooperation. The company intends to maintain

ongoing communication with stakeholders and

to set up partnership based on confidence and

agreement, to develop the decision making

processes and to resolve potential conflicts.

With regard to the complexity of the business

environment and the network of relationships

the company is involved in and the wide range

of stakeholders, special attention is to be paid

to preliminary identification of potentially

critical issues and to consistent, proactive ad-

dress and involvement of key partners.

Our approach

tigáz group sustainability strategy is in har-

mony with the EU “Sustainable Development

Strategy”.

Sustainability for tigáz group means that eco-

nomy development is achieved with respect to

social equality and justice, long term economy

development imposes minimal pressure on

environment and with no harm to natural re-

sources of our operation area.

tigáz group sustainability vision is: tigáz group

as the key natural gas provider of Hungary is

committed to proactive and transparent ac-

tions in its daily operation to incorporate sus-

tainability into corporate values. Continuous

improvement of sustainable thinking, technol-

ogies, service quality and social responsibility

contribute to the establishment and sustain-

ability of a renewing society and environment.

The following values in the three dimensions

of sustainability are characteristic to our sus-

tainability challenges:

• economy

– company, honor, transparency

– vision, innovation

– employees, team, dynamism

– profitability

– customers

• society

– future generations, sustainable society

– environment focus in management sys-

tems

– Health and Safety management system

– equality, social solidarity, standard of

living

– partnership, talent, creativity

• environment

– livable and healthy environment

– protection of natural resources, biodi-

versity

– minimal environmental pressure

– eco-efficiency

Several departments cooperate to achieve the

goals of the sustainability strategy and these

guidelines are being incorporated into the four-

year and annual plans.

Employees Suppliers Trade union, workerrepresentation

Other players inthe energy sector

Residential,institutionaland industrialclients

Shareholders,owners

Management

Environmentand nature

MediaLocalcommunities

Professionalorganizations(industrial,market) reserachcollaborators

Government, localmunicipalities

Market stakeholders of tigáz group

Non-market stakeholders of tigáz group

The value of relationships | 19

Stakeholders

Creating value for the stakeholders of the company 2012 (MFt) 2013 (MFt) 2014 (MFt)

Produced economic value

Revenues (net sales revenues+other revenues+ share of associates’ net profit)

256 741 240 520 185 483

Stakeholder Distributed economic value

Suppliers Operating costs (cost of materials and services) 257 672 222 766 165 466

Communities Community investments (donations, institutional sponsorship, voluntary work, education)

13 25 14

Employees Employee wages and benefits (wages+wage contributions+other employee related expenses)

9 243 9 399 9 345

Investors Payments to capital investors (dividend paid+interest paid) 7 620 6 384 3 470

Chambers, associations Member fees 0.7 0.5 0.5

State + municipalities Payments to the state/municipality budget (local taxes+sectorial taxes)

3 231 4 919 4 525

The system of relations

Stakeholders of tigáz group include those

groups that have influence on or interest in

the achievement of its corporate objectives.

The goal of the company is to create value for

the stakeholders and that relationship with

them be built on fair and law abiding manner.

The company has identified its stakeholders

through its management systems and is in

regular contact with them to be able to take

their interests into account. Stakeholders

considered to be most important include regu-

latory organizations, investors, consumers,

employees, communities, the civil society,

suppliers, partners and the future generations.

People are the most valuable assets for tigáz

group. Therefore, corporate culture gives pri-

ority to enrich human resource all the time,

adhere to its commercial and financial obliga-

tions undertaken, and maintain close coopera-

tion with the Hungarian society and local com-

munities.

Piped natural gas supply is a hazardous opera-

tion, therefore it is of priority for the company

to watch out for the safety, health of its em-

ployees and the environmental sustainability

of its own.

Managing relations

Corporate complianceIn the early years 2000, the new concept of

corporate legal responsibility in case of ad-

ministrative offense was introduced within the

Italian legislation.

A legislative decree (231/2001) set forth that

a multinational company (liable also in case

of offense committed by a foreign subsidiary)

can prevent such a risk by adopting and en-

forcing a properly designed organization and

control model (so-called „Model 231”). tigáz

therefore adopted its own „model 231” embed-

ding eni’s Code of Ethics.

The Model is being periodically updated, mainly

to include offenses that the law periodically in-

cludes under the jurisdiction of the Corporate

Administrative Responsibility initially corrup-

tion, than safety on work and respect of human

rights in the working environment.

Regulatory Compliance Competition supervisory proceedings were

launched against tigáz zrt. only once in 2013

and 2014 due to suspected unfair influence on

consumer decision making. In this proceeding

the Hungarian Competition Authority accepted

the commitment made by tigáz zrt. practically

the amendment of certain processes. The com-

pany fully met the obligations undertaken and

thus the procedure was terminated without

any fine. No competition supervision proce-

20 | Sustainability report 2014

Professional partnerships

The activities of tigáz group are complex, mul-

tilayered and therefore the range of stakehold-

ers is also wide. In the course of establishing

and maintaining relations the company follows

suit with protocol. In order to ensure success

of relations, the relevant business units del-

egate competent experts as contact persons,

with authorization to make decisions. The

company is committed to effective coopera-

tion and relations with stakeholders are con-

tinuous and regular. Because of its activity the

business units of the tigáz group are scattered

in a large geographic area, mainly throughout

North Eastern Hungary. In order to ensure sus-

tainability, energy and cost effective operation

the company provides modern and safe infras-

tuctural background.

Professional cooperations Security of supply is of essential importance

in piped natural gas supply and distribution.

Services and distribution are prone to danger-

ous situations. Awareness of external envi-

ronmental factors and safety at work issues

fall primarily within the scope of activity of

service providers and distributors. At the same

time safe operation is also important for con-

sumers, too.

Competence, skills and experience all have es-

sential role in safety and sustainability. In pur-

suit of supply security tigáz group set up a cer-

tified training center and demonstration field in

Miskolc, where training courses are organized

for own employees, contractors and authority

personnel.

The construction works for the training center

and accompanying facilities started in June

2013 and the facility has officially been in

operation since 2014. A demonstration course

and training field is operated beside the train-

ing rooms and not only technology, safety at

work and fire protection training courses for

gas supply industry are provided at the center,

but the special courses provide an opportunity

to conduct field practise. The more competent

our employees, contractors and partners are,

the more effectively field work can be man-

aged and the more the level of security of sup-

ply can be guaranteed.

The training center has several purposes:

• gas supply services are prone to danger-

ous situations, therefore the work safety

of the staff is of paramount importance for

the company; the training center provides

all assistance to working groups conduct-

ing work in danger of gases and handling

failure situations;

• the center provides an opportunity to dem-

onstrate the appliances and techniques

used by gas industry manufacturers, and

eventually emerging operation technology

problems might be analyzed. Such infor-

mation and experience assist additional

in-house development projects;

• the training center and the demonstration

field also serve the achievement of the

most essential HSE principles and aspects;

• experts involved in the training – employ-

ees, contractors and officers from cooper-

ating authorities – acquire competence in

the requirements of practical implementa-

tion of dangerous gas related works, the

operative rules of their work tasks, the

extreme importance of technical safety

and safety at work, cooperation and coping

with stress situations;

• the demonstration course provides safety

to consumers in an indirect manner. Staff

workers and contractors acquire a higher

level of routine and experiences during the

training in the training field and therefore

they will be able to carry out their work in

real situations more efficiently and at a

higher standard. This way security of sup-

The value of relationships | 21

ply to consumers is extended to the last

section of the transporting chain.

In 2013 and 2014 340 workers employed by

contractors attended 23 training courses

provided at the Miskolc training center: 268

of them work situations exposed to danger

and 72 of them at various sites. 603 workers

participated in experimental training courses

and collaborating events (30 programmes)

and 297 of them at the technical training base.

108 workers of contractors conducting work

operations in the immediate proximity of the

gas distribution network attended training ses-

sions. The shows on the demonstration course

were attended by 51 workers from external

partners as part of a cooperation program.

Cooperation with the catastrophe managementofficeUnder the cooperation agreements of 2011

the county catastrophe management directo-

rates and tigáz-dso kft. mutually assist each

other’s work. Coordinated damage mitigation

operations, the sharing of information related

to catastrophe incidents, and the assessment

and analysis of risks concerning each other’s

activities serve this objective. Nearly 350 fire

fighting managers were trained at the Miskolc

training center in fall, 2014. This special train-

ing helps develop the skills of catastrophe

management in the handling of gas related

incident. Catastrophe management staff may

acquire such knowledge in the course of the

training sessions and consultation meetings

which do not only expand their range of expe-

rience but also contribute to the enhanced ef-

ficiency rate of their work.

Acquired knowledge assist them in their com-

mon work with gas industry experts, what is

even more important, the management and

prevention of natural gas related incidents

becomes more efficient, which means an in-

creased level of safety for the customer and

the population. Fire fighters participate in

special academic and filed training programs

at the Miskolc training center with opportuni-

ties among others to learn about academic and

regulatory issues related to natural gas, the

components of the natural gas network and

the emergency services. A highlighted part of

the training is the demonstration of real time

live demonstration of natural gas explosion

impact, where fire fighters may get acquainted

with the cases of gas leakage, gas explosion,

and the so called gas flaring.

dure was launched against tigáz-dso kft. or

tigáz gepa kft. in these two years.

Participation in public policy

tigáz group is indirectly involved in the shap-

ing of public policy through its representation

in different advocacy organizations, since

these advocacy organizations are granted the

opportunity to comment on draft regulations in

accordance with legislation in place. Relevant

laws and regulations are forwarded by the

ministries in charge to the advocacy organiza-

tions, which summarize the insights received

from member companies and submit them to

the competent ministry in charge. Such review

is implemented among others through the ac-

tivities of the Italian Chamber of Commerce,

the Association of Hungarian Energy Traders,

or the Cooperative Forum of Natural Gas Dis-

tributors. For instance: experts of tigáz-dso

kft. participate in the work of the technical

committee set up by the Cooperative Forum

of Natural Gas Distributors, basically to review

and modernize technical legislation.

None of the tigáz group member companies

provided financial support to any political par-

ty, politicians or related institutions in 2013 or

2014, which fully complies with the require-

ments set up by the Code of Ethics.

training field, Miskolc

training field, Miskolc

22 | Sustainability report 2014

the relations with territory

Integrity and transparency

Training intended to compliance with and en-

forcement of the requirements laid down in

the anti-corruption regulations and the Model

231 continued in 2013 and 2014. In 2013 new

entrants passed examinations on the contents

of the Code of Ethics with the assistance of an

electronic training system and executive were

provided with anti-corruption training organ-

ized by eni academy. In 2012 all employees

passed an examination on the Company Code

of Ethics in line with the eni guidelines.

Transparency International Hungary prepared

a survey in 2013 among the TOP50 Hungar-

ian companies. The survey studied the level of

transparency of the anti-corruption and busi-

ness ethics codes and business conduct of the

companies. Questions concerning organiza-

tional transparency and country wide opera-

tions examined, in which scope and depth the

company concerned discloses information on

the ownership structure, location of operation

and incorporation as well as certain financial

data of its domestic and foreign subsidiaries.

The survey is conducted in accordance with

the same methodology by which Transparency

International conducts surveys elsewhere.

The findings of the survey evaluated the com-

panies assessed at an average score of 45%,

with an average of 38% for gas industry compa-

nies. tigáz group with its achievement of 88%

proved to be the most transparent member in

the energy sector.

Independent certification body attested the qual-

ity assurance system of the company in 1997 for

the first time. Since then ongoing external audits

had been conducted repeatedly on an annual ba-

sis and closed with good results. The Integrated

Management System was introduced in Novem-

ber 2011 by tigáz group. Employees and execu-

tives at the company make all efforts to work

up to the requirements and expectations of the

quality assurance system during their day to day

work, thus gaining trust and obtain satisfaction

Trainings on procedures and anti-corruption

Procurement – relations with suppliers

Due to its size tigáz group has a great influence

on the other players of the economy, therefore

its responsibility is not limited to the scope of

the company. It is important for the purpose

of the risk factor that it entered into business

relations with suppliers with appropriate eco-

nomic, social and environmental performance.

To this end the company manages supplier re-

lations from the sustainability perspective as

well.

Suppliers are selected in a regulated, transpar-

ent, structured and documented procurement

procedure in compliance with the laws and

regulations. Tendering by tigáz group is organ-

ized in line with the regulations provided by the

owner eni and its own internal rules. Controls

incorporated in the regulations are dedicated

to ensure transparency of the tendering and

contract awarding procedures in all phases of

the procurement process.

Such measures include tender applications

requested to be submitted in sealed envel-

oped (99%), which can only be opened at a pre-

The relations with territory | 23

determined date and time; prices are received

in a separate cover and are opened only in

those cases where the Contracting Entity (the

competent unit in charge) deemed the profes-

sional contents appropriate. Major tendering

steps are implemented under the control of

several officers and executives. The Company

makes sure that the entire tendering process

as a whole (from the commencement of the

procurement need up to payment for perform-

ance) is transparent and the responsibilities

are separated by an annual sampling process

and investigation (Segregation of Duties – SOD

– testing).

In contracts tigáz group tries to set up mutu-

ally beneficial partnerships creating values.

For tigáz group anti-corruption activities and

ethical and fair market behaviour are impor-

tant factors, therefore it is requested from

suppliers to adopt the set of rules and values

laid down in the Code of Ethics, the guidelines

of the Model 231, and the anti-corruption

statement. It is important to get to know and

comply with the requirements laid down in

these documents which are also recorded in

the terms and conditions of the contract.

In order to provide for cost efficient operations

procurement processes are also rationalized

on an ongoing manner by exploiting synergies

originating from the procurement processes

at the parent company or group level. The pro-

curement organization paid special attention

in the course of the years 2013 and 2014 to

make procurement processes even more suc-

cessful and efficient.

Supplier references, economic situation, qual-

ity and sustainability related capabilities are

assessed by professionals in a pre-qualifica-

tion system and their contractual performance

is evaluated as part of a post-qualification

system, on which basis suppliers are listed in

qualification categories.

During the qualification and evaluation of

contracted partners the practices of the part-

ners are examined from the HSE perspective

– health, safety and environment – by ques-

tionnaires and in certain cases through on site

inspection visits, in addition to the respective

applicable laws and regulations or official au-

thority requirements. Such aspects include

for instance the holding of accident preven-

Procurement activities

Total procurement (mrd Ft)

Suppliers 2014

Contracts by type

2012 2013 2014

nr Mrd Ft nr Mrd Ft nr Mrd Ft

Works 184 2.2 204 4.9

Materials, goods 205 2.4 212 2.6

Services 281 9.3 319 3.1

tion courses, the existence of appropriate

working environment and accident prevention

systems, which is accompanied by on site in-

spection visits and randomly selected touring

of work places in the case of strategic supplier

partners. Experiences are recorded in a proto-

col and photographic evidence is attached to

most of such reports.

57 supplier partners were qualified, seven

of them being strategic supplier partners in

2013. 85 supplier partners were qualified, ten

of them being strategic supplier partners in

2014. (Strategic suppliers are those partners

the work of which has a significant impact on

the performance of the tigáz group such as gas

network construction activities.)

The qualified supplier status is not for an un-

limited period of time, it lasts for a period of 36

months. After expiry tigáz group will require re-

qualification. The result is a currently updated

database of “Qualified Suppliers”. Requalifica-

tions in 2013 and 2014 ranged up to 230 and

62, respectively.

The certification process ensures revelation of

risks and the potential for joint development

with suppliers. Qualification results are impor-

tant factors in the selection process of suppli-

ers. Products and services are predominantly

procured by the company from qualified sup-

pliers. In addition to certification, substantial

attention is paid to due diligence of suppliers.

In the audit of the due diligence process busi-

ness, economic, financial and legal reliability of

the supplier is checked. Due diligence audit is

conducted for supplier qualification, re-qualifi-

cation and a great part of contracting. In 2013

and in 2014 650 and 572 due diligence proc-

esses were conducted, respectively.

In order to prevent damages hazardous sub-

stances or preparations must be procured only

in the justified amount necessary for stocking.

Such materials are always stored separately.

Material storage is implemented by complying

with the special professional instructions and

requirements.

32.4%

37.5%5.5%8.5%

16.2%

Micro-enterprise

Small enterprise

Medium-sized enterprise

Large enterprise

No information

of consumers and partners. The success of the

audit was demonstrated by the documents

accessible on the company web site – www.

tigaz.com/company/quality-management.

24 | Sustainability report 2014

Through orders placed with suppliers tigáz

group contributes to the success of regional

economic environment and enterprises to a

great extent, as well as to create and maintain

jobs.

tigáz group introduced electronic invoice

processing for supplier invoices in April 2011.

Electronic invoice processing entails a number

of advantages including:

• monitoring and tracing invoice processing

and confirmation is possible any time in

any phase right from their arrival,

• invoices can not be mixed up because they

are promptly scanned upon arrival and for-

warded to the files outright,

• by electronic invoice processing and con-

firmation shorter payment terms can be

better maintained and this way less inter-

Supplier invoices est on default payment has to be endured,

• significant amount of postal costs can be

saved by electronic forwarding of invoices,

resulting in quicker and more effective ad-

ministration,

• less paper is used because invoice images

photocopied earlier on or documents han-

dled in printed form during accountancy or

bookkeeping are now available in electron-

ic format,

• the system is also geared up to receive

electronic invoices, which can be more

readily processed than paper based hard

copy invoices since the invoicing docu-

ments are available in electronic state in

the first place,

• e-invoices must be stored electronically as

well, thus archive operations are more sim-

ple to accomplish.

Suppliers (number of suppliers/number of employees)

The relations with territory | 25

Spending for the territory

The organizations sponsored by the tigáz

group – typically charity organizations and as-

sociations and foundations engaged in activi-

ties for the benefit of the public – are audited

by the company through the Due Diligence

procedure prescribed and laid down in its inter-

nal regulations, to see the activities they are

actually performing and to eliminate the risk

of corruption, money laundering or the use of

sponsorship for unintended purposes.

Sponsorship strategy The tigáz group pays particular attention – as

part of its social and welfare type undertakings

– to the implementation of its sponsorship and

responsibility programme. It was in 2010 that

the tigáz group launched its social responsi-

bility programme entitled ‘Energy Connects

Us’ (“Összeköt az energia”). The sponsoring

and selection activities are carried out by the

company on the basis of centrally regulated

procedures. Changes in the economic, social

and natural environment makes it necessary

for the company to continuously review and re-

vise, as necessary, its sponsoring and respon-

sibility system.

In view of the social, societal and environmen-

tal position of the field of operation of the tigáz

group social responsibility plays a greater role

than straightforward sponsorship. The tigáz

group is aware of its social and economic re-

sponsibility stemming from its very size, and

it spares no effort to live up to it. It is the Com-

pany’s goal that its social responsibility under-

takings and activities should have an attitude-

shaping impact, therefore it has, from the very

beginning, paying particular attention to the

communication of its social responsibility pro-

gramme and to the involvement and activation

of its employees.

In the framework of the social responsibility

programme we are focusing on implementing

initiatives affecting wide groups of society and

the quality of life of local communities as well

as facilitating the development of future gen-

erations.

Relations with local community It was in 2012 that the tigáz group launched

its comprehensive social responsibility pro-

gramme entitled ‘Energy Connects Us’. The

programme is aimed at generating value in

social, educational, cultural and social aspects

through supporting local communities and the

future generations. The involvement of the

employees is a key pillar of social responsibil-

ity, thus the various initiatives have been im-

plemented through our employees’ voluntary

work and contribution.

2013 and 2014 saw the implementation of

quite a number of initiatives:

• To facilitate birds living in urban environ-

ment the company started to apply bird

protecting foils on the glass surfaces of

its plants and sites in 2013. The widely

used stickers featuring the silhouettes of

birds of prey were first placed on windows

most exposed to the risk of birds crashing

into them on the buildings in the town of

Hajdúszoboszló. The figures act on the in-

herited flight reflexes of the smaller prey

birds, thus keeping them away from glass

surfaces.

• In 2013 the company joined the World Clock

initiative and contributed to environmental

protection by switching off the lights at its

premises.

• In the course of the collection of dona-

tions at Christmas the company and its

employees collected long shelf-life food-

stuffs, clothes, sweets and toys for those

in need. In 2012, 2013 and in 2014 we col-

lected such items for eleven, five and six

foundations and charity organizations, re-

spectively. (The chart includes donations

offered by the company only, donations of

employees were not indicated.)

• During the Christmas period the tigáz group

suspended the disconnection of its service

for consumers with bills more than 60 days

past due.

• By undertaking voluntary work the em-

ployees of the company nearly completely

refurbished the building of a kindergarten

in Debrecen (Tócóskerti óvoda) and a so-

cial/welfare institution (Temporary Home

for Families of Debrecen) in 2013, while in

2014 they refurbished the building of the

Stadium Sports Member Nursery School in

Miskolc.

• In 2014 in the framework of the “One dish

2012 2013 2014

supplier invoices (nr.)of which e-invoices (nr.)

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

26 | Sustainability report 2014

Christmas charity 2013Christmas charity 2012 Christmas charity 2014

18.8%

6.4%

18.5% 18.8%

18.8%

18.8%

Szent Erzsébet a Szegényekért Alapítvány

Debreceni Szegényeket Támogató Alapítvány

Híd a Gyermekekért Alapítvány

Borostyánvirág Alapítvány

Gyermekétkeztetési Alapítvány

LEA Alapítvány

The relations with territory | 27

Relations with educational institutions

The tigáz group HR organization maintains constant relations with

institutions of higher education in order to jointly implement training

and apprentice programmes. The group of companies provides op-

portunity to students to perform mandatory summer practical train-

ing and to work on their thesis.

Vocational experiences will be gained by the execution of a coopera-

tion agreement with the various institutions of higher education. A

number of different data supply services are provided to unemploy-

ment centres and authorities. Ongoing contacts are kept with voca-

tional institutions in order to secure replenishment of specialists.

As a result of the collaboration with the Budapest University of Tech-

nology and Economics tigáz group created the opportunity to use

more intelligent sealing solutions on operating pipelines and thus to

render its operation economically more profitable, efficient and safe.

The sealing developed will have a beneficial environmental impact

since due to it’s application methane exposure in the environment

can be reduced.

In the course of the collaboration with the Pécs University of Sci-

ences the air supply of multiple storey buildings with gas fired ap-

pliances was tested including the discharge of combustion products

from gas consuming equipment installed in such buildings.

The simulation model developed will provide assistance to under-

stand air supply problems in apartments better under different con-

ditions of operation (such as replacement of doors and windows,

installation of vapour draining constructions) and provided an ap-

propriate foundation for future explorations of additional impact

mechanisms related to air supply and discharge of combustion prod-

ucts.

of meal” day our employees baked biscuits

and cakes which they offered to each other

in exchange for voluntary payments (hon-

esty box) and the donations so collected

were used by tigáz and the Red Cross for

distributing food for the hungry in the city

of Miskolc.

• In 2014 we organised a programme enti-

tled “Ride your bike to work” in the course of

which our volunteers collected donations

by the kilometre, covering a total distance

of 93 000 kilometres, for Aranyág (“Golden

Branch”), a foundation for the physically

handicapped.

• The tigáz group sponsored Szent Márton

Gyermekmentő Foundation, a child rescue

foundation by purchasing and donating

special products for the dressing of burn

wounds.

• The company joined the programme enti-

tled ROMASTER in which our two volunteer

colleagues undertake mentoring activi-

ties to help two minority students in so-

cial integration. The company is providing

financial sponsorship for the studies of the

students. Our shared goal is to help them

obtain degrees in tertiary education.

• The company’s volunteers joined the “You

Cooperation with universities

University Activity

University of Debrecen trainee program

University of Miskolc higher education, training courses

University of Miskolc research and development (consumption analysis)

University of Technology and Economics, Budapest research and development (rubber seal testing)

Pollack Mihály Faculty of Engineering, University of Pécs research and development (aeration of apartments)

Pick it Up – for a clean Hungary” movement

in order to participate in the efforts aimed

at keeping our environment clean.

• The company operated the ti&gáz school

energy saving programme between Sep-

tember 2010 and May 2014 in the frame-

work of which students, the future gen-

eration (nearly 60 000 primary school

students) learned about energy saving,

energy awareness and environmental pro-

tection in interactive classes.

The tigáz group’s ‘Energy Connects Us’ social

responsibility programme was invited in 2014

to the European Business Awards, one of the

most high profile European Business Award

programmes. In the first round the programme

was given the “National Champion” title in the

corporate sustainability and social responsi-

bility category, thus it had the honour of rep-

resenting Hungary in the international con-

test. As one of the 10 best contestants in the

category the company’s programme received

the prestigious Ruban d’Honneur title in the in-

ternational master, making it to the European

final.

4.9%

13.9%

9.8%

9.8%

9.8%9.8%

9.8%

9.8%

9.8%

9.8% 2.6%

19.6%

1.9%

6.2%

13.3% 19.6%

19.6%

19.6%

28 | Sustainability report 2014

relations with customers and consumers

A key to tigáz group household customers is

the warm home, while for business customers

the uninterrupted supply of energy. This trans-

lates into service standards and security of

supply for the company.

Gas supply is a basic service and concerns

all people, consumer and business organiza-

tion almost without exceptions. Therefore the

objective of tigáz group with respect to cus-

tomer relations is to ensure the opportunity

of access to energy all times, uninterrupted

supply and quick, smooth administration of is-

sues emerging in the course of the service pro-

vided, as well as simple and flexible access to

the company. We strive to provide easy access

to the company and to offer responses to cus-

tomer requests within a 15 days time frame or

earlier. In our responses we intend to be easy

to understand and full scale.

We believe that comments or even complaints

received from our customer are valuable in-

dications which help us explore eventual de-

ficiencies in the processes or otherwise. By

eliminating such deficiencies we can improve

customer service and increase our successes.

In continuation of the work started in the past

ten years tigáz group still strives to make ad-

ministration of customer service relations, in-

cluding complaint management more efficient

and to shorten the reply cycle, to minimise in-

conveniences to customers and to provide pri-

ority to instant responses and solutions.

In the course of customer relations manage-

ment tigáz group provides accurate and thor-

ough information on products, services and

offers true explanations in advertisement

messages as well as in overall corporate com-

munication.

Relations with customers and consumers | 29

Corporate and marketing communication

It is crucial for the tigáz group that it keeps its

existing and prospective consumers in accord-

ance with the effective and applicable statuto-

ry regulations in its advertisements. We spare

no effort in making sure that our advertise-

ments communicate and show our offerings,

products and services accurately and unam-

biguously, eliminating the possibility of deceiv-

ing anybody. Therefore one of the key steps of

the work process of producing advertisements

is ensuring observance of and compliance with

the requirements of consumer protection and

the guidelines issued by the Hungarian Com-

petition Authority, along with all of the relevant

and applicable statutory regulations. Our cur-

rent offerings are communicated to all by using

the widest possible range of communication

channels we can afford, utilising the poten-

tials of each advertisement carrying medium

to the full. This is how we ensure access to as

comprehensive information as possible so

that everyone can make a well-informed and

responsible decision.

To keep out customers informed we provide

valid, accurate and thorough information on

our products and services by way of our adver-

tisement messages and other communication.

In the newsletters released by the tigáz group

we provide up-to-date information on:

• advice concerning energy efficiency,

• energy services enabling consumption and

cost optimising,

• new, innovative products and products ca-

tering for special needs,

• the key international and domestic news of

relevance to the energy market.

It was in 2014 that the tigáz group first brought

out its magazine entitled ‘Energiamozaik’,

informing consumers of the most important

news and events relating to the company. The

magazine helps readers keeping themselves

informed in relation to conscious and economi-

cal energy consumption and facility mainte-

nance, disseminating knowledge concerning

pipeline gas supply.

As one of the most innovative universal natural

gas supplier in Hungary the tigáz group offers

a wide variety of convenience services for its

consumers. The “tigáz 1000mester” service

was introduced in May 2014 as an additional

supplementary retail product, offering quick,

convenient and cost efficient solution for its

customers in resolving emergency situations

at home.

The company’s loyalty programme has been in

place since April 2012, whereby we reward our

consumers’ loyalty. Some 50 000 of our cus-

tomers joined the loyalty programme by the

end of 2014.

In cooperation with eni hungária zrt. the tigáz

group offers its Multicard fuel card for business

undertakings, enabling significant savings on

fuel costs, along with its agip-tigáz premio club

point collection card developed for its retail

consumers and the employees of its corporate

customers. The point collection card has been

requested by some 50 000 of our customers.

The company has been the only one among

the energy supplier companies in the Hungar-

ian market to introduce what is called “tigáz

voucher”, also available in an electronic form,

as a unique payment instrument for the settle-

ment of gas bills.

Another cashless payment solution applied

by the company is that gas bills can be settled

through some 1 400 ATMs across the territory

of Hungary. tigáz group’s commitment to envi-

ronmental protection is reflected by the appli-

cation of the electronic gas bill, i.e. instead of

the use of paper-based invoices and cheques

customers can manage administrative proc-

esses relating to gas bills on-line.

In view of aspects of environmental protection

and economic efficiency the company sends

three part invoices for every quarter in a single

envelope to customers paying the service fee

on the basis of annual balanced part invoicing.

By printing on both sides of the invoices we

managed to significantly cut down our paper

consumption.

energiamozaik

tigáz 1000mester

tigáz loyalty programme

2014. JÚLIUS / I. ÉVFOLYAM 1. SZÁM

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tigáz 1000mester

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customer service office

30 | Sustainability report 2014

Electronic document management system (DMS)In regard to customer management the tigáz

group focuses on sustainability considera-

tions. Accordingly, in order to cut down on

office stationery use in our administrative

procedures the company has introduced an

electronic document management system

(DMS) in regard to all of its administrative pro-

cedures and modernized its printers.

In 2013 and 2014 the tigáz group received

an average of 1.5 million documents per year,

in other words, some 5-10 thousand consign-

ments were processed each day. Some 6.6

million of documents are stored in the cen-

tral archive, making up some 12 000 metres

of documents. With the aid of the electronic

document management system some 98 % of

the documents received are processed elec-

tronically, without the use of any more paper.

(The DMS is suitable for processing documents

from the size of a business card to the A/0 size,

and it can also digitize documents outside the

standard size limits.)

The tigáz group has rerouted the mailboxes

of its sites to the company headquarters in

Hajdúszoboszló, and mailboxes at the sites are

only used for internal paper-based correspond-

ence, along with some dedicated mailboxes

to which professional organizations request

consignments that need to be filed in a paper-

based form as well. As a result of the develop-

ment some 96% of the inbound consignments

end up in Hajdúszoboszló with only some 4 %

arriving at the sites.

The consignments received at the Hajdúszo-

boszló headquarters and at other larger sites

are marked with individual bar codes, and 98 %

of them are digitized. Part of the digitized docu-

ments are transmitted automatically to the

administrative employees via the electronic

document managing system, while others are

transmitted semi-automatically, with human

intervention.

As a result of the work processes put in place

part of the digitized consignments are auto-

matically attached to tigáz group’s data sys-

tem and thus they are dealt with in that system

while the rest of the documents are processed

in the electronic document management sys-

tem.

The consignments received in Hajdúszoboszló

are transmitted – after digitizing – directly to

the archive, their placement in the archive can

be traced in the DMS system. The original copy

of a document can be retrieved and borrowed

Relations with customers and consumers | 31

for administration through the DMS system.

If the administrative processes require out-

bound correspondence, the outbound letters

are taken care of in the tigáz group DMS sys-

tem. The system attaches individual identifi-

ers to the outbound letters, thus the inbound

and the outbound documents relating to a giv-

en case can be electronically linked together

and referenced. The mailing requirements per-

taining to the outbound letters are electroni-

cally set by the administrative employees in

the tigáz group DMS system and the settings

are automatically transmitted into the mailing

system. Preparation for posting is the carried

out accordingly.

In summary: by the introduction of the elec-

tronic document management system the

Paper cunsumption (A/4 sheet / month)

Annual paper consumption (A/4 sheet)

Company has taken a major step towards the

implementation of an electronic office. Ideally,

the administrative employees can access and

manage all documents relating to a given case

electronically.

tigáz group is committed to offering the most

cost effective solutions to its consumers. Elec-

tronic invoice payment put in place with our

partners is just one of these services whereby

our customers can pay their bills anywhere

and anytime, free of charge. All this makes

it much easier to receive, sort and pay bills,

even through mobile phones, and unlike paper-

based bills, this is an environmentally friendly

solution.

In accordance with the relevant statutory

regulation the tigáz group also provides the

standardized invoice view for consumers using

natural gas as an universal service.

The tigáz group participate in the consumer

satisfaction survey carried out by the Energy

and Public Utility Regulation Authority in uni-

versal services, taking its findings into ac-

count in the development of its products, serv-

ices and its customer management system.

Based on the results of the 2014 customer sat-

isfaction survey overall satisfaction with the

activities of tigáz group was improving in both

the retail and in the non-retail categories. Nearly

80% of the respondents found tigáz group’s

activities to be excellent or good. The improve-

ment of the data concerning personal cus-

tomer service in 2014 reflects a positive trend

particularly in terms of speed of administrative

services and its professional standards.

document filing

document center

7 000 000

6 500 000

6 000 000

7 500 000

8 000 000

2012 2013 2014

200 000

300 000

400 000

500 000

600 000

700 000

800 000

2012 2013 2014

32 | Sustainability report 2014

Enhancing sustainability for customers and consumers

A number of opportunities and services are

offered on our website which facilitate the pro-

tection of our environment and the promotion

of conscious energy consumption. In relation

to supplementary products open for order, an

online ordering interface is provided to cus-

tomers in order to reduce the use of paper.

The attention of customers is called on con-

scious energy use at our website with the

help of the on-line test entitled “Energy state

of your home”, which provides useful informa-

tion on to which extent the energy use of the

residential building or apartment in question

can be reduced and what can the owner do to

this end.

The promotion of energy efficiencyandresponsiblebehaviours

The online version of the popular parlour game

“Thrifty Tips” – available in board or outdoor

version – can be accessed in a more playful

format by the younger generations but also

for adults and families just as well. The game

can be played by as many as six persons on a

single computer, accompanied by spectacular

animation and sound effects. The winner of the

game is given a virtual diploma on the savings

achieved during the game by providing the cor-

rect answers.

In the sustainability menu of the website –

www.tigaz.com/company/sustainability – the

attention of visitors is called to current nature

conservation events, world days in addition to

the basic information provided, all of which are

also provided in the calendar function.

Relations with consumer associations

With respect to customer relations manage-

ment the company puts great emphasis on

preserving the security of personal data, and

has strong ties and collaboration with the

National Consumption Protection Authority,

its county level branches and the Consumer

Inspectorates of the Government Offices. The

primary goal of these relations is to enforce

consumer rights and safeguarding of consum-

er interests in a wide range by providing serv-

ices to consumers. Contacts are maintained by

consumer protection officers of the company

who are trained in professional consumer pro-

tection training courses and passed consumer

protection examinations in order to obtain the

capabilities of efficient work.

Customer satisfaction surveys

tigáz group conducts surveys among stake-

holders and participates in surveys conduct-

ed among the stakeholder groups in order to

learn about their opinion on the corporate op-

erations. Surveys on the working environment

completed among the employees of tigáz

group and consumers, opinion leaders can be

mentioned in this respect.

The company commissions an external agent

to carry out a media audit on corporate commu-

nication each year, where journalists provide

feedback on the communication activities of

the company. Surveys are made anonymously

and the company keeps on continuously de-

velop its external communication based on the

feedback received from journalists.

Relations with customers and consumers | 33

Contact center service

The number of tigáz group customers ranged

up to 1 239 000 people and 1 217 000 people in

2013 and 2014, respectively, on the regulated

market and as a result, this extensive customer

population entails quite a high number of

approaches in terms of customer relations.

To match the versatile needs, tigáz group

ensures personal customer services (www.

tigaz.com/customer-service/offices), contact

through call centres and an online customer

service (www.tigaz.com/customer-service/

registration), in addition to applications

accessible on smart phones. In order to serve

our customer at a high level our customer

relation channels are being developed on an

ongoing manner. In 2014 the range of online

customer service applications was extended

and the easy to handle Smartphone application

was introduced.

tigáz group continues to adapt the customer

relations channels and their respective capaci-

ties to changing customer/consumer habits.

The extension of the service area, geographic

distribution, infrastructure and traffic devel-

opment administration of issues is gradually

diverted to telephone and on-line customer

channels, providing a more convenient and

wider ranging option for administration of is-

sues.

tigáz group receives customers in 8 permanent

customer service offices in 2013 and in 2014

and in 29 and 77 additional offices in 2013 and

2014, respectively. Additionally, general orien-

tation opportunities are provided to custom-

ers are 79 additional small settlements just

as well as to get access to document forms.

Customer service offices are easily accessi-

ble to the population of the respective regions

because they can be found in central places

and readily accessed by means of community

transport. tigáz group provides a customised

single entrance complex administration option

to corporate customers taking gas on the free

market with a metering capacity in an amount

of 20 m3/h or above through its professionally

competent key account managers.

In the customer service offices operated by

tigáz group itself the administration proce-

dure has been accelerated by the introduction

of the modern customer call system and the

appointment reservation option through the

internet, thus only a few minutes waiting time

is necessary even in the case when customer

Personal customer service 2014

Customer service slave offices

Abaújszántó Hajdúnánás Putnok

Baktalórántháza Hajdúszoboszló Püspökladány

Balassagyarmat Hatvan Ráckeve

Balmazújváros Heves Rétság

Bátonyterenye Ibrány Sárospatak

Bélapátfalva Jászapáti Sátoraljaújhely

Berettyóújfalu Jászberény Szárliget

Bicske Karcag Szécsény

Budakeszi Kazincbarcika Szentendre

Budaörs Kisvárda Szerencs

Cegléd Kunhegyes Szigetszentmiklós

Cigánd Mátészalka Szikszó

Csenger Mátraderecske Tápiószentmárton

Dabas Mezőcsát Tiszaföldvár

Demecser Mezőkövesd Tiszafüred

Derecske Mezőtúr Tiszaug

Dunakeszi Monor Tiszaújváros

Edelény Nagykálló Tiszavasvári

Encs Nagykőrös Tokaj

Fehérgyarmat Nagymaros Törökszentmiklós

Füzesabony Nyíradony Tura

Gödöllő Nyírbátor Vác

Gyál Ózd Vásárosnamény

Gyöngyös Pásztó Vecsés

Hajdúböszörmény Pilismarót Záhony

Hajdúhadház Pilisvörösvár

Budapest

Debrecen

Eger

Érd

Miskolc

Nyíregyháza

Salgótarján

Szolnok

Chief customerservice offices

34 | Sustainability report 2014

201220112010 2013 2014

number of incoming callsnumber of handled calls

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

demand, making appointment for technical

issues, issues related to consumers to be pro-

tected, communication related to customer

loyalty cards and tigáz 1000mester services,

issues related to elimination of operating trou-

bles, and general requests of information.

We also operate a “green number”, which can

The Contact Centre receives reports on the

meter readings from fixed line phones just

as well as from mobile phones and in sms.

In addition to dictating meter readings, the

telephone system offers the opportunity to

administer the following issues: billing, con-

tract related communication, reporting gas

be called free of charge round the clock to

report gas leakages and operating troubles

(+36 80 300 300).

Call center

Smart phone application

Relations with customers and consumers | 35

turnover is the highest (the number of custom-

er contacts: 499 749; average waiting time:

5.21 minutes). In order to enhance comfort of

the customers, the company provides host-

ess services and free wifi internet access in

the most frequented customer service offices.

The electronic media playing system operated

in the customer service offices serves better

information of customers, which provides both

generic information and customised details for

the community of the region concerned based

on the geographic location of the customer

service office in question. Accurate service and

effective settlement of potential further dis-

puted issues are served by a voice recording

system operated in the permanent customer

service offices and recording the conversa-

tion of customer administration. Information

is provided to customer in the information ma-

terial of the media playing system and on the

website / homepage on the average periodical

loads of the customer service offices, thus

assisting timing of administration to periods

when waiting time is shorter.

The number of calls handled by operators in

the Contact Centre in 2013 and in 2014 was

835 902 and 693 621, respectively, which is

at a level of 83% in average compared to pre-

Average waiting time in the Call Center (sec)Customer calls Number of self-service operations (IVR+sms+web)

vious years. Average waiting time was 19 sec-

onds, 86 % compared to the previous year.

According to the changes in the consumer hab-

its tigáz group continuously develops its web-

sites (www.tigaz.hu; www.tigazdso.hu; www.

tigazgepa.hu), the primary function of which is

to provide accurate and detailed information,

including an online customer service opera-

tion. The basis of web site development is the

“usability test” carried out by independent pro-

fessional partners with the aim to determine

the course of optimisation intended to set up a

user friendly structural design for websites. A

part of this process was when an independent

website was created in the 2013-2014 period

for tigáz gepa kft. and the website of tigáz-dso

kft. was re-designed.

At the end of 2013 the tigáz application de-

veloped for smart phones has become pub-

licly available, which can be downloaded from

the Google Play and Apple AppStore internet

stores. Since the number of visitors arriving

from mobile devices is constantly growing,

the version of our website optimised for nar-

row screen devices was set up back in 2011

(m.tigaz.hu), where most frequently used

functions of the homepage can be accessed

in a simplified form. In the 2013-2014 period

www.tigaz.hu webpage statistics 2013-2014 cummulative data

Users nr. 2 285 309

Page view nr. 20 460 649

Opened pages on the average nr. 3.6

Average time of visits min/sec 00:02:31

E-mail notifications nr. 1 012 198

‘tigáz 1000mester’ serviceMeter read submission

2 Account related administration21 Balance query22 Accounting

Administration related to contractsand change of service providers

4 Technical administration41 Reporting gas demand42 Cancellation of gas meter accuracy verification43 Cancellation of appointment set for work at metering points

Reservation of time slotsin the personal Customer service office

Consumers to be protected

Elimination of operating troubles

tigáz smartphone application

tigáz loyalty card

36 | Sustainability report 2014

tigáz online customer service

more than 70 thousand interested parties

visited this homepage which can be accessed

both in Hungarian and English, just like all other

homepages owned and run by tigáz group.

Contents of the corporate websites and ap-

plications are continuously updated and kept

current, they are regularly expanded and such

user friendly applications were designed which

serve as an easy to access flexible and con-

tinuous source of information to consumers,

allowing them to contact their service provider

practically anywhere and any time.

Online administration functions accessible on

the corporate websites and Smartphone ap-

plications provide the opportunity to a wide

range of administration, including, but not lim-

ited to online balance queries, account history

or heating value queries and for dictating cus-

tomers the function of bill estimates, further

reducing the necessity for paper based ad-

ministration efforts. In order to allow efficient

administration electronic sales services are

also developed on a continuous basis, so that

customers could make the necessary preven-

tive steps to prevent a lengthy administration

procedure, whether it goes about dictating me-

ter readings or settlement of overdue invoices.

Most visited pages of online customer service

Meter read submission

Homepage

Asking statement of account

Customer service

Billing history

Household customers

Meter read data

List of customer service offices

Billing information

Registration

Relations with customers and consumers | 37

Customer complains 2013

Customer complains 2012

Customer complains 2014

By the end of 2013 and 2014 more than 14%

of our customers registered on the homepage

which means more than 170 000 users for this

homepage. Extended services and the month-

ly electronic newsletter are available to regis-

tered customers, in which continuous informa-

tion is provided on services and events of the

gas market. The newsletter also contains ad-

ditional advices and offers.

The homepage is visited by hundreds of thou-

sands of visitors monthly to administer their

issues there electronically, showing a clearly

increasing tendency. The most popular func-

tions include monthly meter reading dictating,

querying bills and current account balances

and the function of preliminary billing esti-

mates. Additionally half of all registered users

take advantage of at least one from the op-

tions of reminders to meter reading dictating

periods, payment notices, and new bill e-mail

notice services, which also make electronic

administration more convenient and comfort-

able.

Arising from the large number of Customers

tigáz group has to face a number of special

cases in addition to the overall generic Cus-

tomer relations management. For the purposes

of sustainability three groups of extraordinary

cases bear importance: (1) Customer com-

plaints, (2) Consumers to be protected and (3)

illegal off-taking (tampering).

Customer complaints are handled by a sepa-

rate organizational unit who cooperate with

the consumer protection officers employed by

the company in their everyday work.

Handling customer complaints draws to an end

within 15 days following receipt by the com-

pany.

Gas supply is a fundamental service because

a warm home may save lives in times of frost.

tigáz group provides the service to all consum-

ers to be protected in compliance with the way

provided for by the law. Gas supply services

were provided by tigáz group in 2013 and in

2014 to 21 716 and 16 914 consumers to be

protected in average, respectively.

Illegally and unmetered off-taken gas may

result in life threatening situations in an over-

whelming majority of the cases, beside caus-

ing losses to the community, therefore com-

bating illegal tampering is a key task of tigáz

group for which it acts consistently and by

strict adherence to the legal provisions, in col-

laboration with the police in many cases.

Within the tigáz group service area 3 559 and

2 312 incidents of proven illegal gas withdraw-

al were revealed in 2013 and 2014, respec-

tively. When technically demonstrated cases

are also included which however could not be

charged onto the users due to legal and official

constraints this value is a lot higher. As a result

of the consistent work carried out in the past

years the amount of gas off-taken illegally or

without a valid contract was reduced to 1.46 %

by 2014.

11.4%

not legitimate

legitimate

88.6%

82.5%17.5%

not legitimate

legitimate

93.5%6.5%

not legitimate

legitimate

38 | Sustainability report 2014

people

It is the conviction of tigáz group that future

success is based on current decisions on hu-

man resources. The strategic objective of the

company is to exert this activity in line and in

harmony with the requirements and expecta-

tions concerning health, safety and the envi-

ronment. Safety at work, fire protection and

environmental protection activities of the

company was incorporated in the Integrated

Management System where tasks are control-

led by rules, process descriptions and instruc-

tions. Requirements are included not only in

the form of specific process descriptions and

instructions, but appear also in an integrated

manner in the other management processes

controlling service operations. Instructions

summarize all requirements and domestic, in-

ternational and European Union norms which

are indispensable in the provision of natural

gas supply services. Safety and health of em-

ployees, communities within the area of op-

eration and of suppliers is of paramount impor-

tance for the company. Therefore our company

carries out its operations in the field of health

and safety with a view to the principles of pre-

caution, prevention, protection and ongoing

improvement, assigning the appropriate roles

and responsibility to all levels of hierarchy.

Safety

tigáz group works consistently that employ-

ees could conduct their jobs in a safe working

environment. Our goal is to prevent accident at

work and to keep accidents with lost time inju-

ries at a low level. In order to achieve this the

company reinforces constantly its activities of

accident prevention training and control.

The following measures were taken in

2013 and 2014 in order to enhance safety:

Training and education:

• The technical training base in Miskolc

started operations on 1 October 2013. Op-

portunities to deepen technology related

knowledge, to practice the use of tools and

equipment applied in working operations

involving dangerous gases and to simulate

the impacts of exploding natural gas are

provided in the demonstration area con-

structed there.

• Professional training sessions are organ-

ised for the staff members of the Network

operation, Network controlling and Net-

work management organizations.

• Training of contractors in Health, Safety,

Environment – HSE topics including safety

at work trainings.

• Organization of traffic safety implications

training was implemented through the

e-learning system in order to reduce the

number of traffic accidents and to enhance

the safety of those involved in traffic.

• Both year on each site of the tigáz group

site specific emergency drills were organ-

ised and implemented.

Development of control activities:

• Risk assessment of tigáz group operations

is carried out regularly on an annual basis.

• Photographic evidence and analysis of

completed working operation involving

dangerous gases has been introduced as a

new control means.

• The methodology of working operation

involving dangerous gases is being devel-

oped on an ongoing basis using current ex-

periences.

• The methodology of working operation not

involving dangerous gases has been intro-

duced in the field of the control organiza-

tion.

• An HSE control system was developed and

introduced for Contractors.

• Compliance monitoring of HSE related reg-

ulations with legal and eni requirements is

carried out on an ongoing basis.

• HSE compliance of sites is continuously

assessed as part of the site HSE audit con-

ducted in accordance with the pre-deter-

mined schedule.

People | 39

awareness raising and enhancement of sensi-

bility:

• Control of workers during work at the sites

and along the pipelines has been further

advanced including the feedback mecha-

nism of experiences.

• An alert notice has been sent out to Con-

tractors (161 enterprises) related to the

importance of and compliance with HSE

topics.

• A Contractor meeting was organised for

partners providing services to the com-

pany in fields important from the HSE per-

spective on 17 July 2013 where 31 part-

ners attended.

• The eni HSE Road show was organised and

rolled out on 1 October 2013, where the

importance of commitment and dedication

towards HSE topics was demonstrated to

our own staff and the employees of Con-

tractors. The page of the HSE organization

was set up on the internet interface to

strengthen in-house communication chan-

nels, and HSE related attention provoking

and informative articles are continuously

published on the corporate News portal.

• In each year in May and June the series of

HSE days programmed events has been im-

plemented from 2013 for both white collar

and blue collar staff:

– nearly 770 people attended at 6 loca-

tions for a period of 6 hours in different

times,

– the programmes of the series of events

were set up in accordance with the ex-

periences of accidents of works and

the findings of inspections, reflecting

the needs of executives and personnel.

Topics covered traffic safety, disaster

management information, protection

of human health, stress management,

physical exercise as a help, the impor-

tance of first aid provisions, accidents

and near misses, protective equipment,

nature conservation, dangers of dog at-

tacks, dangers of wasp bites, handling

difficult situations, energy saving, etc.

– Fire drills were organised on the venues

of events, with 81 and 66 people fight-

ing real fires in 2013 and 2014, respec-

tively.

– In 2013 and in 2014 129 and 64 em-

ployees filled in tests related to traffic

safety.

– Stress treatment related health status

assessment sessions and instrumental

medical examinations were attended by

a total of 286 persons in 2013, while in

2014 350 employees participated in a

total of 735 organized medical screen-

ing sessions.

– Stress treatment related group exer-

cises were attended by 45 persons in

2013, while the same topic drew the at-

tention of 196 staff members in 2014.

– The creativity of our staff members is

also used as part of the series of such

events. A photo contest was announced

in 2013 entitled “Health and safety all

times!”. Employees submitted 38 pic-

tures to the contest. In 2014 the com-

petition entitled „HSE from our perspec-

tive!” resulted in 18 entries.

Number of injuries

Frequency rate

Severity rateSafety data 2012 2013 2014

Training hours on safety (hours) 25 682 22 885 13 428

Safety audits (nr) 25 46 46

Safety expenditures 2012 2013 2014

Total safety expenditures thousand Ft 427 000 400 000 386 000

* Expenditures of labour protection, safety trainings and monitoring activitites. Health and environment protec-tion expenditures are not included.

training field, Miskolc

40 | Sustainability report 2014

Health

In addition to the basic occupational health

and aptitude medical examinations the com-

pany introduced a number of measures to se-

cure the preservation and protection of a good

health status for workers.

Wide ranging medical screening opportunities

were provided to employees by tigáz group in

2013, which consisted of full blood testing,

hearing testing, allergy testing and vaccina-

tion against tick bites for personnel employed

in risk exposed jobs. Vaccination against influ-

enza was also provided to staff when required.

A number or recreational programmes were

also organised to employees by the company

such as team building exercises or sports

days. A more than four decades long tradition

is for the company to organise the tigáz Sports

Day on an annual basis where staff members

compete against each other in several sports.

320 persons attended such sports events in

2013 and in 2014.

We find of utmost importance to allow employ-

ees find a balance between work and private

life, supported by flexible working hours or the

opportunity to teleworking. Fifty six and 55 per

cent of all employees were employed in 2013

and 2014, respectively. Teleworking was an

option for 37 persons in 2013 and for 39 peo-

ple in 2014. The company keeps on broadening

the cooperation with a large number of various

business partners including hotels, sports in-

stitutions where tigáz group employees may

get discount in recreational activities with

their families.

A collective life and accident insurance policy

was taken out by tigáz group for its employ-

ees, providing coverage 24 hours a day.

Employment

The following represent fundamental values in

the values shared by tigáz group as a corpora-

tion and this scale of values is also reflected by

the human resource management practices

embraced by the company:

• respect and fairness: This is a value be-

yond the respect to each other’s work in

day to day operations. This principle is

Occupational health care services

Occupational health care expenses

about paying respect to employees, cli-

ents, partners, suppliers and shareholders.

Open and honest corporate culture and fair

business behaviour are essential ingredi-

ents to such respect and the lack of them

puts our success at stake.

• We are a single team: Cooperative culture

is a core value. The purpose is discuss

emerging issues for each team member

and voice your opinion, but after the col-

lective decision has been made, it must be

stood for collectively.

• equal opportunities: The task or job con-

cerned includes the expectations, capa-

bilities and requirements which define

how it can be best performed. Our goal is to

identify the appropriate person with a view

to this based on the person’s capabilities,

skills and aptitude.

The company firmly believes that a key ingredi-

ent to create values is the adequately trained

workforce. In this spirit human resources are

ensured by recruiting highly trained employ-

ees and ongoing training programmes. Profes-

sional qualifications are condition precedents

for taking individual positions, which must

harmonize with the level of responsibility, de-

cision making and roles of the job to be taken.

In order to ensure success, a performance

evaluation system is operated which docu-

ments employee performance and motivation.

Performance evaluation takes place in a writ-

ten form and by verbal conversations, in which

performance is assessed by the person being

evaluated and his/her line manager; the evalu-

ation will be finalised by consensus of both

parties. The assessment system provides the

opportunity to mutual agreement on future ro-

People | 41

Employees age band

Employees’ qualification

2012

2013

2014

Job classification

Workforce management 2012 2013 2014

Employees (as of december 31) 1 551 1 522 1 424

- Man 63% 64% 65%

- Woman 37% 36% 35%

Employees by type of contract

- Permanent 1 539 1 520 1 424

- Temporary 8 2 0

Full time 1 547 1 519 1 423

Part time 4 3 1

Home office 30 37 39

Number of temporary laborer 179 163 134

- Of which woman 82% 78% 76%

*2 Italian employees in 2012, 3 in 2013, 4 in 2014 where appointed to the position of director by the parent company.

best ideas are recognised.

On 31 December 2013 1 522 persons were

employed by the company and 4 additional

persons were delegated by eni s.p.a. to assist

tigáz group works.

tation of jobs. In 2013 tigáz group introduced

the idea management system, where employ-

ees are free to submit ideas and proposals. The

purpose of the system is to improve operations

and cost efficiency. Colleagues submitting the

68%

17%

14%1%

Secondary school diploma

College diploma

University diploma

Less than secondary school diploma

67.5%

15%

16%0.5%

Secondary school diploma

College diploma

University diploma

Less than secondary school diploma

65%

19%

15%1%

Secondary school diploma

College diploma

University diploma

Less than secondary school diploma

42 | Sustainability report 2014

Relations with trade unions

Trade Union at tigáz group has a history of 50

years. It has always been essential to compa-

ny life and it participated in important decision

making processes.

Labor relations are considered to be of great

value. Relations with Trade Union and Work-

ers’ Council have decade long traditions at the

company. The Human Resource Directorate

with the involvement of relevant departments

has continuous weekly meetings with labor

representation bodies.

The Trade Union consists of small core groups

with members associated by virtue of their

respective jobs, with a head count of approxi-

mately 10-50 persons. Geographically related

core groups set up a regional division. The ar-

eas follow the geographic distribution of the

area of operation of the company: Hajdúszo-

boszló (headquarters), Debrecen, Nyíregy-

háza, Miskolc, Eger, Szolnok, Gödöllő. Regional

divisions are headed by secretaries.

Regional trade union executives (secretary

and trade union steward) form the key deci-

sion making body, the Steering Committee of

the Trade Union, headed by a chairman and two

deputy chairs.

Collective Agreement has a long standing tra-

dition at tigáz group. It regulates the rights

and obligations arising from employment, in-

cluding those benefits and rules of procedure

which deviate from the standards of the Code

of Labour. It interprets provisions of the laws

and regulations and adapts the corporate op-

erations to local (company and trade) speci-

fics, to secure an agreement which is mutually

beneficial for both Contracting Parties. Such

terms and conditions include redundancy,

severance payment, extra working hour fees,

hall of fame membership, infringement, in-

demnification liability, redirection, protection

of officers, range of work clothing allowances.

Additionally, it also contains the rules pertain-

ing to the labor relations between the employer

and the Trade Union.

Fringe benefits and social policy allowances

provided by the company are also regulated

by the Collective Agreement. Employees are

supported by a wide range of cafeteria options

the scope of which is extended year by year

to the extent possible. The Collective Agree-

ment also states that employees are granted

a fixed amount of health fund and pension fund

contribution on a monthly basis. This way the

company emphasize the preservation of the

health of its employees and the precautionary

savings related to their future pension.

The relation between the company and the

Trade Union is excellent and balanced, char-

acterized by mutual respect and honor of the

Contracting Parties. The company fully com-

plies with the legal regulations. This is typical

as to consultations, information flow, review

and discussion of disputed issues.

The wage stratification is annually reviewed

and the Human Resource Directorate prepares

a report update on wage evolution for the Trade

Union on a regular basis.

Safety at work interest representationEmployees are entitled to elect representa-

tives from among themselves to represent

their rights and interest related to safe and

healthy working conditions. Safety represent-

atives set up a workplace safety committee.

Meetings of the committee are attended –

upon proposals from the committee – by the

appointed and authorized officers represent-

ing the appropriate member company of tigáz

group on a mandatory basis.

A Parity Based Safety Body was formed at

tigáz group, which consists of an equal mem-

bership of employer and employee representa-

tives. The Parity Based Safety Body is chaired

by employer and employee representatives in

an alternating manner and meetings are held

twice a year. During meetings the Body evalu-

ates performance of the past recent period and

emerging comments and issues are being dis-

cussed. As a result of the meeting measures

are decided upon, deadline and responsibility

of execution allocated to appointed members;

the Body always reviews and assesses the ex-

ecution of measures in its next meeting. Oper-

ating conditions for the Body are provided by

the company.

People | 43

type of discrimination (such as gender or

age). In each of the cases a competence

based job interview is conducted which

is then supplemented by competence as-

sessment tests or “assessment centres” in

many cases, and the final decision is made

on the basis of them;

• Loyalty of staff members with 20 and 45

years of employment is honoured by the

company with special financial premium.

Our Core Guard members with 25 years of

employment in the company are rewarded

by financial bonuses and gifts.

Selection to executive positions takes place

exclusively on the basis of the qualifications,

working experience and competencies of the

candidate, avoiding discrimination by gen-

der or age deliberately. (For instance: two of

the five executive positions available at tigáz

group were taken by women and three by

men in 2014. Thirteen of the 44 middle level

manager positions were taken by ladies. At

the team leader level, 29 female team leaders

and 35 male team leaders were employed by

the company. In the Collective Agreement the

Company paid special attention to the honour

of Core Guard members and in 2014 more than

30% of the Core Guard members were women.)

Working conditions: tigáz group pays spe-

cial attention to retain the balance between

work and private life, in most of the positions

employees, including women, work in flexible

working hours. An employee is given the oppor-

tunity to arrange his or her private affairs out-

side the core business hours without having to

apply for a special permit. Extra hours accumu-

lated in a half year period can be off-set by tak-

ing even whole day off later, that is extra work

is compensated by the company through free

Equal opportunities

The Association for Women’s Career Develop-

ment in Hungary awarded the third prize of

the “Best Workplace for Women 2013” in the

category of employers with more than 250

employees, this way recognizing the efforts of

the company made towards the emancipation

of women.

Equal opportunities of employees are kept in

the forefront at tigáz group to the maximum

extent possible in the course of designing

workplace replenishment, career opportuni-

ties and promotion. Selection to executive

positions takes place exclusively on the basis

of the qualifications, working experience and

competencies of the candidate – whether from

in-house or externally –, avoiding discrimina-

tion by gender or age deliberately.

Beside full time employees (FTE) tigáz group

also uses hired labour for certain positions. The

ratio of female executives at the company ex-

ceeds 35%, in the case of hired employees 75%.

The ratio of female employees in management

position was 41.86% in 2012, 38.2% in 2013

and 37.8% in 2014, respectively. These figures

include ladies taking the positions of directors,

middle level managers and team leaders.

tigáz group carried out and still carries out sev-

eral measures which were and are designed to

ensure a balance between career and private

life, assist in creating equal opportunities to

women raising a child or children and to women

in general:

• part time jobs are tailored to the needs of

employees;

• the opportunity to telework is ensured

since 2007 and is continuously broadened.

It can be provided on a temporary manner

to employees caring for a sick child or rela-

tive;

• mothers with small children have the op-

portunity to perform their jobs in telework-

ing or part time arrangements, which is

always approved on the basis of submitted

individual requests;

• the positions of mothers on child care al-

lowance are taken in their absence by ei-

ther breaking them down to other jobs or by

limited term contract, therefore mothers

will have the opportunity to return to their

former positions. The option for unpaid

holidays is also provided by the company;

• in the event organizational changes oc-

curred in the meantime, the employer will

search the most appropriate position for

returning women based on their respective

competence, experiences and qualifica-

tions;

• explicitly female medical screening is pro-

vided to women by the company;

• there is a constant effort made to retain

the male/female ratio in the management

of the company, or to increase the number

of women in those position to the extent

possible;

• career opportunities are secured for fe-

male employees based on equal opportuni-

ties;

• employees may make reporting through

online channels with guaranteed anonym-

ity;

• participation on training courses related

to equal opportunities, such as training

against discrimination;

• during the selection process the company

pays special attention to avoid any kind or

Women employees 2012 2013 2014

Women employees in service % 37.4% 36.2% 35.3%

Women in managerial position (directors, senior and middle managers) % 41.9% 38.2% 38.1%

Employees on parental leave as of 31 December nr. 18 16 19

44 | Sustainability report 2014

equipment is procured for minor sites upon

individual requests (for instance table-tennis

table at the Nyíregyháza site), thus ensuring

recreational opportunities to personnel.

Expansion of recreational possibilities in off-

work hours is also secured. Our staff may use

the services of three and four star hotels na-

tionwide with 20-50% discounts as a result

of partnership agreements. Employees of

the company are issued tigáz loyalty card by

which female employees are granted a number

of various discounts in terms of fitness and

other sports activities, as well as they are able

to use their cards in certain playhouses, cos-

metics saloons, restaurants, health centres,

hotels and in certain cloth shops.

Training

tigáz group assists competence develop-

ment trainings and professional education

programmes supporting the goals of the em-

ployees and of the company, in order to assist

continuously improving high performance and

service standards.

Each new entrants are trained in quality assur-

ance, safety at work, fire protection and envi-

ronmental protection. Following entry the line

manager will prepare an orientation plan for

the new colleague which contains the knowl-

edge to be acquired in the respective area, the

time dedicated to learning and the person in

charge.

In 2013 the company submitted project pro-

posals to the subsidy programme of TÁMOP

2.1.3.C-12/1-2012-0278 in order to raise and

supplement funds for covering the financial

implications of development of professional

qualities and competence of employees, and

as a result, tigáz zrt. was granted an amount of

HUF 9 055 000 and tigáz-dso kft. HUF 23 245

600 to be spent on workplace training.

Since 2012 an in-house trainer team operates

in the company providing team building and

basic capacity building trainings to company

employees. A manager development training

programme for middle level managers and key

top executives was also launched in 2013, de-

veloped by the in-house trainers. The purpose

of the programme is to develop management

time in a period determined by the employee.

In order to allow predictability and plannability

a part of the annual holidays is issued by the

company to employees in the form of manda-

tory holidays in the period before the celebra-

tion day of 20th August, as well as in the period

between Christmas and New Year’s Eve. This

way child care, the balance between work and

private life becomes more plannable for moth-

ers of a family during the holiday season.

Should there be any lay-offs by termination of

employment due to downsizing, personal con-

sultant services were provided to colleagues

in the topics of setting up CVs and techniques

of interviewing in order to increase the labour

market value of the dismissed before terminat-

ing their active employment relations.

Additionally they were given a package com-

piled with a view to support active job search

including the most important things to know

(job portals, contact details of job centres and

employment offices, frequently asked ques-

tions at interviews, etc.).

Special attention is paid to women, allowing

them to acquire their 40 years of service within

the group of companies to the extent possible,

and not to deprive them from this opportunity.

Special attention is paid to keep in touch with

the retired as well, old age pensioner meetings

are organised annually on a regular basis and

employees are supported by aids.

Health and safety: One of the most essential

core principle at tigáz group is to secure con-

ditions for safe and healthy work. We try to

support sporting activities in the broad sense,

since female workers at the company carry out

sitting work for most of the time. The workplace

workout video can be accessed by anybody

on the intranet who have sitting work. Gyms

are set up in major regional units (Hajdúszo-

boszló, Debrecen, Gödöllő, Szolnok, Miskolc),

used primarily by women. Additionally, sports

competencies and to strengthen the role and

awareness of leadership.

In 2014 the team of in-house trainers contin-

ued to work by developing further training pro-

grammes for the group of companies. As a re-

sult of the successful training programmes the

in-house trainers stepped onto the external

market in 2014 and conducted competency

building and team building training courses to

third party clients, thus training as a product

was put onto the product range offered by

tigáz zrt. as an additional service.

In 2014 the training of personnel intensively

exposed to workplace stress was put in focus,

more than 100 control mechanics participated

on them in addition to stress management and

other capacity building trainings sessions.

Training was provided by the company in 64

thousand hours in 2014. Such training includ-

ed capacity building trainings, quality assur-

ance, safety at work, environmental protec-

tion, information technology, economic and

language trainings. A part of the professional

and information technology trainings were

conducted by external service providers, the

capacity building trainings by the in-house

team of trainers.

Efficacy of internal training courses is en-

hanced by the electronic training system oper-

ated by the company via the intranet.

The company supports further education of its

employees, continuous training programmes

intended to obtain a second degree were at-

tended by 31 persons in 2013 and by 28 em-

ployees in 2014. Language programmes were

taken by nearly 100 persons of the employed

staff the main purpose of which was to support

the acquisition of marketable language skills.

Under the training courses provided to employ-

ees special attention is paid to stress laden

jobs such as customer service officers most of

them women.

People | 45

Involving employees

The company operates its own news portal

on the intranet interface with a daily updated

content. News shared on this channel can be

commented on by employees, make observa-

tions which are visible to other fellow workers.

Beside social and business news of the com-

pany the news portal deals with sustainability,

mainly environmental, nature conservation

and energy saving issues in the articles of the

Green Signal column. The same periodical noti-

fies personnel of the culture, leisure, outdoor

and sports programmes. In the sustainability

and environment column of the intranet News

Portal news and articles in the aforementioned

topics are published on a regular basis. Profes-

sional contents related to Health, Safety and

Environment (HSE) are presented in a sepa-

rate column in the News Portal, with editors in

charge from the experts of the HSE organiza-

tional unit.

A great emphasis is put onto the development

of internal communication and our staff mem-

bers are continuously briefed on current hu-

man resources news and the topic of health

protection and health preservation. Ongo-

ing information dissemination is provided to

employees on agreements concluded with

various partners which provide services to em-

ployees at a discounted rate. (such as financial

or entertainment services.)

Based on the internal regulations of the com-

pany the Man/Woman of the Year Award is an-

nounced each year since 2010, which is also

associated with financial remuneration in each

of the cases. Candidates are introduced on the

News portal and employees may cast their

votes on the candidates.

A special tradition in the company is the rec-

ognition of the Core Guard members. It was

laid down in the Collective Agreement that the

members of the Core Guard will be honoured

for their loyalty by both financial remuneration

and gifts.

The corporate social responsibility programme

“Energy connects us” was launched in 2012

with the fundamental principle that the com-

pany gave donations to selected organisations

and beneficiaries supplemented with the vol-

unteering work and private donations of the

employees.

With the beginning of June the campaign en-

titled “eni takes the tie off” is launched each

year for many yearly by now as a tradition to

promote energy saving in which tigáz group

participates also. Employees joining the pro-

gramme may dress up more nonchalantly and

lightly – with a view to the appropriate clothing

at the workplace and with the exception of of-

ficial occasions – and may forego the use of

ties. According to the calculations, by simply

suspending the operation of the air condition-

ing equipment temporarily and keeping the

office temperature at 1°C higher nearly 10%

saving can be achieved in the energy bill. This

unorthodox approach may contribute to the ef-

ficient use of energy, indicating that even the

tiniest steps may result in substantial chang-

es in environmental protection. As a result of

the campaign eni achieves energy saving cor-

responding to fours years use of 125 families.

HSE days were organised in 2013 and in 2014

with a view to creating a tradition. This series

of events is implemented at the priority sites

of tigáz group. The programmes involve pro-

gramme elements organised by professional

partners (for instance, the police, the fire de-

partment, disaster management) in which

employees may participate personally and try

for themselves how to use a dry powder fire ex-

tinguisher in live situations for instance, thus

acquiring experiences should there be a need

to use such capabilities in the day to day life

some time in the future.

An integral part of product introduction cam-

paigns is the involvement of employees in mar-

keting campaigns.

The company held Friendship Sports Meet-

ings in 2013/2014 43/44 times, respectively,

to employees, where our colleagues could

compete in almost 10 different sports both in-

dividually or as a member of teams, men and

women alike.

tigáz group management summarizes the

events of the previous year of the company

each year on the Communication Day pro-

gramme and defines the new challenges,

presenting those programmes by which such

challenges are to be met by the company. From

2013 on presentations at the sites can be fol-

lowed by employees on live internet broad-

casts in the spirit of innovation, sustainability

and cost efficiency. Our company surveys em-

ployee satisfaction concerning the commu-

nication day each year by having a question-

naire completed. Each employee receives a

questionnaire. Evaluation of the questionnaire

provided the following percentage ratios for

satisfaction: 46.57 %, 67.3 % and 5.4 % in 2012,

2013 and 2014, respectively.

eni group as the owner prepares corporate

satisfaction surveys on a regular basis in

which tigáz group is also involved. Based on

the outcome of the satisfaction survey the HR

organization of the company develops a devel-

opment action plan on the implementation of

which our colleagues work on a continuous ba-

sis. tigáz group conducted a satisfaction sur-

vey in the internal business units concerning

the operations of the internal service provider

organisations in 2013. Based on the survey re-

sults an action plan was developed intended to

enhance in-house customer satisfaction level

which also has an impact on the customer sat-

isfaction level in order to promote organiza-

tional development.

„Woman of the Year ” awarding

HSE presentation

46 | Sustainability report 2014

environment

Health, safety and environmental issues in

Hungary are regulated by laws and regulations

based on EU directives and regulations in ef-

fect from time to time. tigáz group continues to

ensure sustainability of its achievements as a

function of time, expanding the relations with

stakeholders and improving the performance

of the company, valorising intangible assets.

Environmental management system

As a part of the certified Integrated Manage-

ment System tigáz group complies with the

requirements laid down in the Hungarian

standard No MSZ EN ISO 14001:2005. The ba-

sis for the determination of objectives in the

Environmental Management System (EMS)

originates from the significant environmental

factors identified in the environmental impact

register set up as a result of the Environmental

Impact Process.

Various projects are in place at the company

with respect to the overwhelming majority of

the significant environmental factors identi-

fied and the environmental impacts arising

from them. HSE target: preventing environ-

ment pollution, decreasing environment im-

pacts, supervising environment factors, im-

proving environment achievements.

Energyefficiency

In terms of rationalization of energy use tigáz

group continued to apply its measures intro-

duced in previous years and intending to in-

crease energy efficiency:

• Further rationalization of the use of com-

pany cars

– concentration of user needs by the ap-

plication of the car pooling system,

– reduction of the number of cars in the

vehicle fleet, concentration of needs

– use of work management system

– (reduction of fuel use, emission reduc-

tion, route optimisation and enhance-

ment of safety).

• Intensification of controls by the GPS sys-

tem in order to increase the efficiency of

vehicle use further (control of speed limit

violations).

• Development of IT tools which may assist

in a substantial relief of the environmental

exposures by assisting and promoting the

holding of web meetings, and rationaliza-

tion of company related trips.

Environmental management 2012 2013 2014

HSE audits nr. 14 46 46

environmental expenditures and investments thousand Ft 110.7 105.3 140.5

Energy 2012 2013 2014

Electricity Gwh 2.8 2.7 2.8

Natural gas toe 1 726.4 1 512.9 1 116.7

Light oils, petrol, diesel toe 922.8 843.2 823.2

Total energy consumption toe 2 649.1 2 356.1 1 939.9

Water management 2012 2013 2014

water use thousand m3 13.3 11.5 11.2

waste water discharge thousand m3 13.3 11.5 11.2

Conversions1 m3 natural gas = (1*0.6918/1000)*1.28 = 0.000885504 toe1 l light oils, petrol = (1*0.73/1000)*1.05 = 0.0007665 toe1 l diesel = (1*0.84/1000)*1.02 = 0.0008568toe: oil equivalent; unit that allows the comparison of energy carriers

Environment | 47

Atmospheric emissions

One of the most important impact of tigáz

group on the environment is the methane dis-

charge originating from leakages. The compa-

ny has set up a working group for the purposes

of exploration of metering differences along

the network, which assumed the task – among

others – to detect methane discharges into

the environment, and to develop detection

methodologies and concepts.

Major activities of the working group related to

HSE associated leakages and methane release

were continued during the current period:

• Examination of further extension of pres-

sure reduction: Within the supply area of

the company, the application of the so

called winter/summer conversion has be-

come widely accepted and customary. In

the past period the list of settlements was

continuously broadened where gas pres-

sure can be reduced.

• Development of leakage detection: In order

to assist the completion of this activity 25

new leakage detector instruments were

obtained.

• The methods of estimation applied to re-

leases were applied in accordance with the

regulations of the eni G&P and of eni.

Water management

No process water is used in tigáz group opera-

tions. The figures listed below are water use

cases associated with the operation of the

sites such as sanitary facilities.

Each site of the company is connected to the

public mains network and all waste water gen-

erated is of communal type.

Waste management

For the purposes of waste management ef-

forts tigáz group continued the reduction

programme of the volumes of waste genera-

tion commenced in earlier years as well as the

measures intended to increase the rate of re-

use:

• Continued operation of the selective gar-

bage collection system in the office areas.

• In order to reduce the amount of paper used

the company continues to apply electronic

document management and additional

modernization of the printer fleet.

• A fully fledged electronic document man-

agement system (DMS) was developed.

This way a large part of our documents is

not presented in hard copy printed format

but electronically. This way paper use at

the company could be reduced substan-

tially. Reduction of paper use was further

enhanced by additional measures such as:

– Setting up partnership and cooperation

with partners who offer our consumers

the option to elect electronic invoicing/

billing systems.

– The Smartphone application of the

company started in 2013, which also

assists by Customer relation functions

to reduce paper use in the course of the

customer relation processes.

The waste management system organised and

regulated under the IMS fully complies with the

respective legal requirements in place in the

European Union or in Hungary.

Under the HSE days referred to in the Safety

chapter an initiative was proposed where the

main purpose was to collect a part of the cer-

tain hazardous waste types generated in the

households of tigáz group employees. As a re-

sult, a total of 32 litres of spend oil, 9 kg used

batteries and 1 kg paint rugs were collected,

the appropriate elimination of which was taken

care of by tigáz group .

Atmospheric emission 2012 2013 2014

Length of pipeline km 33 630 33 648 33 678

Distributed gas on secondary network Mm3 2 366.5 2 249.7 1 984.2

Co emission t 9.1 8.6 7.3

Co2 emission t 6 891.8 6 603.9 5 168

Nox emission t 3.9 3.8 3.6

Ch4 emission t 12 857.4 12 493 10 454.5

Waste management 2012 2013 2014

Hazardous waste kg 13 986 7 492 6 695

Industrial non hazardous waste kg 321 681 244 957 217 284

Municipal waste m3 2 400 1 874 1 946

Separately collected waste m3 683 703 628

selected waste collection

48 | Sustainability report 2014 Certificates| 49

Certificates

50 | Sustainability report 2014 Certificates| 51

52 | Sustainability report 2014 Certificates| 53

TIGÁZ Tiszántúli GázszolgáltatóZártkörűen Működő Részvénytársaság

Hajdúszoboszló, Rákóczi u. 184.tigaz.hu

Publisher: TIGÁZ Zrt.Editor: Lorenzo Maina, Száraz GáborDTP: Imázs és ReklámContact: kommunikacio@tigaz.hu12 May 2015