Colori Alla base dell’identitá Eni

I. Institutional & Corporate eni - july 2009

Sustainability report 2015

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

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 32

People 36Safety 36Health 39Employment 39Relations with trade unions 40Equal opportunities 41Training 42Involving employees 43

Environment 44Environmental management system 44Energy efficiency 44Atmospheric emissions 44Water management 45Waste management 45Environmental awareness 45

Table of Contents

Chairman’s message | 5

chairman’s message

Fabrizio DaSSogno

Dear Reader,

It is my pleasure to introduce you our 2015 Sustainability Report, in which we give insight into our

efforts and results of year 2015 in the field of sustainable company management.

Companies across many industries have realized that traditional ways of business performance

do not serve properly the needs of stakeholders. They must consider the needs of all stakehold-

ers – including employees, customers, and community members – not only in maximizing share-

holder profits but to maximize responsibility towards the environment.

When measuring business results over the long term, management teams must do more than

ever before. We at tigáz group firmly believe that running a responsible business and high levels

of performance do not have to work against each other. We have been doing the practise for years

to integrate sustainable practices into our energy business model. In terms of communicating

our sustainability management we focus on efficiency opportunities, transparency, risk manage-

ment and continuous dialogue with our stakeholders.

Sustainability means many things to stakeholders. Some equate it with philanthropy, while

others expand the definition to focus on regulatory compliance, Corporate Social Responsibility,

business ethics and the environment.

In our report, we refer to sustainability as an umbrella term. In our business the core elements

of sustainability are the safety of gas supply, healthy and safe labour conditions as well as re-

sponsible environment management model. We believe that we are not just delivering natural

gas to our customers and communities, but also an enabling environment that will benefit them

in the long term. We had progress in 2015 in detecting the location of gas leakages, and intensi-

fied the safety checks in our areas. In every project we undertake, no matter what the scale, we

place a core focus on protecting people. In 2015 the company invested 525 million HUF on Health,

Safety and Environment related projects and it was worth the investment, as in 2015 our peo-

ple achieved the lowest recorded accident rates. The Group completed the year with 2,61 million

worked hours and recorded 1 (one) accident. In 2015 we went on enhancing our safety projects

with new safety related educational films, and extended safety trainings to our subcontractors.

We supported our people with a new edition of HSE rules handbook. Labour health protection ini-

tiatives included regular medical check-ups carried out by our 20 contracted labour health-care

service providers.

We are pleased to see the increasing number of employees at all kinds of physical exercises, not

only within the framework of the HR facilities – company sport days, gymnasiums of the com-

pany locations – but as active participants of the Corporate Social Responsibility initiatives – like

collecting garbage in the environment of the locations, ’collecting’ kilometers in the Bike-to-work

programme or giving helping hand to the renovation of childcare institutions.

As a sustainable business – aiming at financial returns, a good place to work, and being a respon-

sible citizen – our people are prepared to listen to and meet stakeholder requirements and are

pleased to invite our stakeholders to contribute to sustainable business environment by giving

us feedback and enter into conversations. Because sustainability is a common cause in saving

cost, limiting waste and consumption of natural resources.

Chairman

Fabrizio Dassogno

About our sustainability report | 7

Lorenzo Maina

About our sustainability report

tigáz Sustainability Report is at its fifth edition

and this year was one of remarkable changes:

– the Group recorded again a profit after

four years of losses

– the important decision to leave the gas

regulated market was taken in June

– a competitive tender was open in

November to offer for sale our portfolio

of customers served on the free market.

The Group is now reshaping its internal

organisation, its processes, its assets

according to the forms of a pure Distribution

System Operator.

A general principle says that healthy economic

performance, safety on work and sustainable

operations go normally together; we are trying

to explain, in this Sustainability Report, how

and why.

The Report presents the past achievements,

but there are a few guidelines for the future

that we were able to elaborate in these years:

– self-reference must be progressively

curbed, enhancing openness,

confrontation and a wider vision

– a diffused consciousness of the

company’s business will help focusing

the initiatives of social responsibility

closer and closer to the stakeholders of

a gas utility

– increasing internal environmental

culture will increase the scale of the

achievements we started to measure

in energy management, waste

management and environmental

impact of our operations: modest in

absolute terms, but with a potential for

improvement.

Director, Communication, Commerce and Services

Lorenzo Maina

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 within the administrative

territory of Hungary.

The company is managed by directors under

the leadership of the Chairman of tigáz zrt.

(business, finance and controlling; customer

relations; human relations, organization and

information technology; external relations and

facility management; sales and commerce; le-

gal and corporate affairs; procurement and risk

management), while tigáz-dso kft. engaged

with pipe network development and operation

– is led by a Managing Director.

The management structure of tigáz group

ensures flexible responses to changes in

customer expectations, market challenges

and a changing regulatory environment in a

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

standard and efficient service to customers

while guaranteeing continuous security of

supply.

The mission of tigáz group is to provide

security 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, sus-

tainability and corporate social responsibility.

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

group) provides universal natural gas serv-

ices in Budapest and in 11 counties through-

out Hungary (Bács-Kiskun, Borsod-Abaúj-

Zemplén, 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/

universal-service), while being capable of

providing natural gas supply services to com-

mercial customers in the entire territory of the

country.

Universal service as well as free market natu-

ral gas trading operations are provided and of-

fered by tigáz zrt.

tigáz-dso kft., a fully owned subsidiary,

is in charge of gas distribution and net-

work operation (www.tigaz.com/company/

tigaz-group/tigaz-dso).

On 3 August 2015, upon request of the Com-

pany, the Energy Regulator MEKH decided

that tigáz universal service customers will be

transferred to Főgáz by October 1st 2016.

Activity of tigáz

8 | Sustainability report 2015 Activity of tigáz | 9

Operating data of tigáz group 2013 2014 2015

Gas sales (Mm3) 1 856 1 552 1 579

Gas distribution (Mm3) 2 171 1 916 2 114

Operating profit (MFt) -15 374 -6 406 4 514

Profit after taxes (MFt) -21 418 -13 101 153

Gross investment (MFt) 4 955 4 266 4 818

Number of consumers 1 203 594 1 191 534 1 196 324

Universal Service 1 196 798 1 187 825 1 192 153

- Household 1 130 982 1 122 732 1 126 461

- Non-household 65 816 65 093 65 692

Free market 6 796 3 709 4 171

Municipalities supplied (nr) 1 093 1 093 1 092

Length of pipelines (km) 33 676 33 699 33 720

Number of employees 1 522 1 424 1 411

eni

eni is one of the world’s most significant

major integrated energy company, committed

to growth in the activities of finding, produc-

ing, transporting, transforming and marketing

oil and gas. Its operations are characterised by

high level of competency in all areas, and the

company has a vital role in the international

market.

With a shared capital of EUR 4 005 358 876

eni is listed on the Milan and New York stock

exchanges and operates in 66 countries

worldwide with more than 29 000 employees.

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

tigaz-group/tigaz-gepa), fully owned by

tigáz zrt., used to deal with the re-condi-

tioning of diaphragm gas meters, individual

gas metering and pressure regulating ex-

aminations, detection of illegal gas off-tak-

ing methods, calibration and renovation of

metering instruments to be used in the gas

distribution networks, beside conducting

maintenance works on pressure regulating sta-

tions owned by tigáz zrt. customers, for which

purposes subcontractors were employed.

Additionally tigáz gepa kft. used to provide

logistics functions to the group and – also

with the involvement of a subcontractor – to

carry out digitalization of the group corre-

spondence and management of electronic

administration.

Since 1 October, 2015 operative activities

of tigáz gepa kft. has been redistributed

amongst the companies of tigáz group. In

this context, gas meter reconditioning and

logistics were delegated to tigáz-dso kft.,

Key objectives include to create added value

to shareholders by continuous develop-

ment, to provide high standard services and

products to customers with reasonable pricing

structures and to pay special attention to

employee needs.

It has adopted a model of Sustainability

focused on the enhancement and security of its

employees and of the communities it works with,

on environmental protection, on technological

innovation and research, on fighting climate

change and on energy efficiency.

and tigáz zrt. was entitled to be engaged

with digitalization of correspondence and

management of electronic adminsitration

plus coordination of maintenenace works on

pressure regulating stations.

10 | Sustainability report 2015

Missiontigáz as a reliable and client-oriented gas

distributor 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 as

regards its customer base, and a company

with traditions; as such, it keeps having a

Activity of tigáz | 11

Hr-strategyOne of the key challenges facing our sus-

tainability strategy lies in human resource

management; therefore the tigáz group’s

HR strategy plays a profound role in the at-

tainment 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 diverse, 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.

• 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 % of the employees

worked in atypical jobs (e.g. home office)

in 2015.

• 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 de-

velopment: We provide high quality re-

sources for the training of our employees.

A significant proportion of the necessary

training activities is secured from in-house

resources.

• 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.

Corporate strategyIn 2015 tigáz group has consistently con-

tinued its operational activities in order to

achieve its main objectives, such as: to keep

its position in the Hungarian market in terms

of natural gas sales (universal service and free

market), and to make the operation more effi-

cient and effective.

In this year, the economic result reached an

equilibrium, in spite of a regulatory framework

still very unfavorable both for US commercial

operations and for the network’s management:

the strategy of continuously streamlining op-

erations and pursuing efficiency paid off and is

going on.

remarkable impact on the economy and the

industrial culture of its operation area, creating

opportunities for people, communities and

local businesses.

Commitment and competences of tigáz

employees makes them able to face the

challenges and to achive the objectives set by

the group.

In a wider perspective, two main decisions

were taken in 2015:

1. To hand-over the whole US portfolio in 2016;

2. To offer for sale the whole portfolio of free-

market customers.

In 2015 investments worth of nearly HUF

4 818 million were undertaken, the main

part of which (HUF 4 173 million) was dedi-

cated to develop and maintain its pipe

network and related investments. Other part of

the investments aimed to provide IT support to

priority projects and to modernize IT systems

ensuring smooth operation.

We pay particular attention to boosting our

performance in health, safety, environmental

awareness.

12 | Sustainability report 2015

sustainability: from principles to business processes

At the core of tigáz group activities stand

customers, and full compliance with their

needs as well as investor expectations. The

company intends to gain appreciation of

clients, investors, owners and stakeholders

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

priority of sustainable development in the area

of its operation including the issue of energy

efficiency, energy saving, the protection

of the health and safety of employees, the

local community, those in contract with the

company, and consumers as well as the

protection 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

measured 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

facilitates fact based decision making and

sustains the processes of quality assurance,

environmental management, Health, Safety

and Environment management system

processes in harmony with the operation of

intermediary organizations all dedicated to

meet stakeholder expectations.

Compliance to legal and other types of

regulations 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

corporate governance system are determined

by the governing guidelines and policies of 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

requirements, and is associated with the

governance and management system model

of eni.

Beyond the competition to ensure economic

efficiency and effectiveness, the company

aims at establishing and maintaining mutually

beneficial relations with suppliers. Best

practice principles, standards and solutions

are applied in order to prevent health, safety

and environment incidents at the workplace,

to avoid environment pollution and injuries and

impairment of health. Their efficiency is further

enhanced by setting up and securing safe

workplace environment and infrastructure

meeting ergonomic needs of employees,

and by strengthening corporate social

responsibility.

All tigáz group employees commit to work on

the implementation of this policy.

Management systemstigáz group operates an Integrated

Management System since November 2011.

(The quality assurance system pursuant to

the standard No ISO 9001:2008/MSZ EN ISO

9001:2009, the environmental management

system pursuant to the standard No ISO

14001:2004/ MSZ EN ISO 14001:2005, and the

Health and Safety system pursuant to the stan-

dard OHSAS 18001:2007/MSZ 28001:2008 are

maintained and continuously developed as an

Integrated Management System.) The renewal

audit of the Integrated Management System

certificate concerning the certification period

of 2014-17 was successfully accomplished in

2015. Certificates furnishing evidence to this

effect are accessible on the respective website

IMS policy

IMSmanual

Process descriptions,annexes

Records

Documentary evidence

Regulatory documents

Policies

MSGs

Procedures

Operation instructions

eni tigáz

Notes

of each of the three companies. According

to the Act XL of 2008 on natural gas supply

after 28 February 2015 bills that meets the

criteria specified in the Act and a certification

body specified also by the Act certifies the

compliance of the billing system and related

subsystems with the general information

security and containment requirements can

be regarded as valid exclusively.

tigáz group’s billing system was successfully

certified proving that its billing system is fully

in compliance with the Act.

14 | Sustainability report 2015

Activities of individual business units are

contained in the Organization and Operation

Codes (OOC), eni regulatory tools, as well as

the process descriptions and instructions of

the Integrated Management System.

The concept of tigáz group Integrated

Management 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.

Sustainability: from principles to business processes | 15

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 meet-

ings at least three times a year: the Board was

convened three times in 2015 too, and addi-

tionally a number of written voting procedures

were also conducted.

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 Associa-

tion which also ensures the presence of an

employee representative in the Statutory Audi-

tors Committee.

The tigáz zrt. Statutory Auditors Committee

has a meeting at least four times a year: five

meetings were convened in 2015. Additionally,

members are invited to the meetings of the

Board of Directors with consultation rights.

tigáz-dso kft. Statutory Auditors Committee

also has regular meetings: they held five meet-

ings in 2015. No Statutory Auditors Committee

exists at the time being at tigáz gepa kft.

The remuneration of the chairman of the Board

of Directors, the members of the Board of

Directors, the chairman of the Statutory Audi-

tors Committee and the members of the Statu-

tory Auditors Committee is decided upon by

the Shareholders’ Assembly, and by the sole

member 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 deter-

mination of the strategic guidelines of the

company, and of the review of supervision and

control over corporate operations.

As to certain issues the authority of repre-

sentation of the company was transferred

by the Board of Directors to the Chairman, as

well as the authority to take all arrangements

necessary with respect to the scope of ac-

tivities of the company except those referred

to the jurisdiction of the Board of Directors or

the Shareholders’ Assembly by the law or the

Articles of Association. Furthermore the Board

of Directors assigned the right of company

management 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

Fabrizio Dassogno (chairman)Gioacchino CostaIlaria Azzimonti

Paolo BossolaRoberto Albergante

Board of Directors of tigáz zrt.as of 31 December 2015

Fausto Salvador (chairman)Dr. Nagyné Dr. Stieber Ilona Tünde

Varga GyulaStatutory Auditors Committee of tigáz zrt.

as of 31 December 2015

Fausto Salvador (chairman)Jacsmenik Gyula

Patakvölgyi ÁrpádStatutory Auditors Committee

of tigáz-dso kft. as of 31 December 2015

Shareholding

As at 31 December 2015 the tigáz group had

own shares of an amount of HUF 80 million in

27,859 own shares.

On 31 December 2015 the businesses

controlled by the tigáz group had neither

directly, nor indirectly – with any other

enterprise or person in between – own any

shares and/or business quota/shares of the

controlled businesses.97,88 %

2,12 %

Shareholders

eni S.p.A.

other shareholders

16 | Sustainability report 2015

Internal audit system

tigáz group is committed to set up and

operate an internal audit system to control

assets, organization structure, corporate

instructions, rules and regulations in order

to ensure successful 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 information flow

channels to ensure exchange of information.

With the operation of the IMS an effective

executive management support tool was

implemented 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,

systematic, independent and documented

internal IMS audit procedures.

138 audit procedures were conducted at tigáz

group in 2015, carried out by a 42 strong

internal auditor team.

In the course of such audits 9 significant, 94

non-significant deviations and 184 comments

were revealed in 2015.

Handling and closure of deviations take place

on an ongoing basis in accordance with a

defined schedule through a so called deviation

management system that provides a solution

to record keeping of handling deviations

detected during the various examinations

and audits by providing a set of roles and

associated authorizations.

The purpose of deviation management:

• Record deviations explored during the va-

rious examinations and audits within the

group of companies and to support correc-

tive actions and planning preventive mea-

sures.

• 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

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.

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

training to be up-to-date with the contents

of the Code of Ethics and a predefined group

of employees must attend anti-corruption

and conflict of interest online courses. 245

employees attended training on the Code of

Ethics in the e-trainer system in 2015. New

recruits of the company receive ongoing

training corresponding to their respective jobs

and responsibilities.

Additionally, the company provides

appropriate training to employees working in

an environment 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

whistleblowing procedure. Both documented

violations of the Ethical Code and abuses in

whistleblowing are prosecuted according to

the company’s disciplinary regulations.

18 | Sustainability report 2015

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

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 future-oriented

thinking, technologies, service quality and so-

cial responsibility contribute to the establish-

ment and sustainability 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

The value of relationships | 19

Creating value for the stakeholders of the company 2013 (MFt) 2014 (MFt) 2015 (MFt)

Produced economic value

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

240 520 185 483 175 147

Stakeholder Distributed economic value

Suppliers Operating costs (cost of materials and services) 222 766 165 466 149 297

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

25 14 11,4

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

9 399 9 345 8 676

Investors Payments to capital investors (dividend paid+interest paid) 6 384 3 470 2 147

Chambers, associations Member fees 0.5 0.5 0.5

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

4 919 4 525 4 538

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.

Stakeholders considered to be most important

include regulatory 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 com-

pany (liable also in case of offense commit-

ted by a foreign subsidiary) can prevent such

a risk by adopting and enforcing a properly

designed organization and control model (so-

called „Model 231”).

tigáz therefore adopted its own „model 231”

embedding eni’s Code of Ethics. The Model is

being periodically updated, mainly to include

offenses that the law periodically includes un-

der the jurisdiction of the Corporate Adminis-

trative Responsibility initially corruption, than

safety on work and respect of human rights in

the working environment.

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 in

2015.

Regulatory Compliance No competition supervision proce-

dure was launched against tigáz zrt.,

tigáz-dso kft. or tigáz gepa kft. in 2015.

Stakeholders

20 | Sustainability report 2015

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 cooperationsSecurity 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

The value of relationships | 21

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:

• 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-

ply to consumers is extended to the last

section of the transporting chain.

In 2015 five-year mandatory vocational

trainings – as required by the law – were

provided for 44 managers and 61 workers

at the Miskolc training center. 924 employ-

ees participated on 48 gas supply related

trainings. 317 workers of contractors par-

ticipated on 15 training sessions. Regarding

simplified device replacement procedures 4

vocational trainings were held for 74 work-

ers of external non-contracted partners.

Cooperation with the catastrophe management officeUnder the cooperation agreements of 2011

the county disaster management directo-

rates and tigáz-dso kft. mutually assist each

other’s work. Coordinated damage mitigation

operations, the sharing of information related

to disaster incidents, and the assessment and

analysis of risks concerning each other’s activ-

ities serve this objective. As a part of the above

mentioned cooperation 15 disaster manage-

ment teams, nearly 240 officers participated

on gas industry related theoretical trainings at

the training center and demonstrations at the

demonstration field.

This special training helps develop the skills of

disaster management in the handling of gas

related incidents. Disaster management staff

may acquire such knowledge in the course of

the training sessions and consultation meet-

ings which do not only expand their range of ex-

perience but also contribute to the enhanced

efficiency 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 spe-

cial theoretical and filed training programs at

the Miskolc training center with opportunities

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 dem-

onstration of real time live demonstration of

natural gas explosion impact, where fire fight-

ers may get acquainted with the cases of gas

leakage, gas explosion, and the so called gas

flaring.

Participation in public policytigáz 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-

tivity of the Cooperative Forum of Natural Gas

Distributors.

None of the tigáz group member companies

provided financial support to any political par-

ty, politicians or related institutions in 2015,

which fully complies with the requirements set

up by the Code of Ethics.

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 cooper-

ation and relations with stakeholders are con-

tinuous and regular. Because of its activity the

miskolci tanpálya

22 | Sustainability report 2015

the relations with territory

Integrity and transparency

Training intended to compliance with and

enforcement of the requirements laid down

in the anti-corruption regulations and the

Model 231 continued in 2015. Executives

were provided with anti-corruption training

organized by eni academy.

Independent certification body attested the

quality assurance system of the company

in 1997 for the first time. Since then ongoing

external audits had been conducted repeatedly

on an annual basis and closed with good results.

Employees and executives 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 of consumers and

partners.

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 fac-

tor that it entered into business relations with

suppliers with appropriate economic, social

and environmental performance. To this end

the company manages supplier relations from

the sustainability perspective as well.

The relations with territory | 23

Such measures include tender applications

requested to be submitted in sealed envelope

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

termined 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 year 2015 to make procure-

ment processes even more successful and ef-

ficient.

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-

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.

41 new supplier partners were qualified, eight

of them being strategic supplier partners in

2015. (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 2015 ranged up to 61.

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. 562 due

diligence processes were conducted in 2015.

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.

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.

Procurement activities

Contracts by type

2013 2014 2015

db Bn Ft db Bn Ft db Bn Ft

Works 184 2,2 204 4,9 252 3,6

Materials, goods 205 2,4 212 2,6 180 1,7

Services 281 9,3 319 3,1 298 10,2

Total procurement (Bn Ft)

Suppliers by type 2015

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 organized in line

with the regulations provided by the owner eni

and its own internal rules. Controls incorporat-

ed in the regulations are dedicated to ensure

transparency of the tendering and contract

awarding procedures in all phases of the pro-

curement process.

The success of the audits was demonstrated

by the documents accessible on the company

web site.

Micro-enterprise

Small enterprise

Medium-sized enterprise

Large enterprise

No information

Foreign company

24 | Sustainability report 2015

Electronic invoice processing of supplier in-

voices is avalable at tigáz group since 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-

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 elec-

tronic format;

Supplier invoices

• 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 supported 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

donations for unintended purposes.

Sponsorship strategyThe tigáz group pays particular attention – as

part of its social and welfare type undertak-

ings – to the implementation of its donation

and responsibility programme. Donation 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

revise, as necessary, its donating and respon-

sibility policy. In view of the social, societal and

environmental position of the field of operation

of the tigáz group social responsibility plays

a greater role than straightforward donations.

The tigáz group is aware of its social and eco-

nomic responsibility stemming from its very

size, and it spares no effort to live up to it. It is

the Company’s goal that its social responsibil-

ity undertakings and activities should have an

attitude-shaping impact, therefore it has, from

the very beginning, paying particular attention

to the communication of its social responsibil-

ity programme and to the involvement and ac-

tivation 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

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

26 | Sustainability report 2015 The relations with territory | 27

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)

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.

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.

2015 saw the implementation of quite a

number of initiatives:

• On the basis of applications used but still

functional IT equipments have been donat-

ed to foundations, schools or individuals in

need by the company.

• In the course of the collection of donations

at Christmas tigáz employees collected

long shelf-life foodstuffs, clothes, sweets

and toys for those in need. In 2015 we

collected such items for two foundations,

charity organizations.

• During the Christmas period the tigáz group

suspended the disconnection of its service

for consumers with bills more than 60 days

past due.

• The complete restoration of the park and

partial renovation of a kindergarten in

Gödöllő (Palotakert Óvoda) were carried

out by tigáz employees by undertaking

voluntary work.

• Programme entitled “Ride your bike to

work” launched back in 2014 continued in

the course of 2015 as well; 193 volunteers

collected donations by the kilometre, cov-

ering a total distance of 110 350 kilome-

tres, for Zsótér Pál Foundation.

• 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

Pick it Up – for a clean Hungary” movement

in 2015 as well in order to participate in the

efforts aimed at keeping our environment

clean.

• tigáz-dso kft. has launched a website

named www.mindentafoldgazrol.hu (i.e.

all-about-natural-gas) providing consum-

ers with extensive information regarding

the use of natural gas.

IT equipments donation (pc)

2013 2014 2015

0

20

40

60

80

100

28 | Sustainability report 2015

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 current offerings are communicated to all

by using the widest possible range of commu-

nication channels we can afford, utilising the

potentials of each advertisement carrying me-

dium 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 our 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.

In 2015 tigáz group published its magazine

entitled ‘Energiamozaik’ three times, 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 economical energy

consumption and facility maintenance, dis-

seminating knowledge concerning pipeline gas

supply. A decision on ‘going digital’ was made

in 2015, making the magazin paper-free, more

topical and fresh.

As one of the most innovative universal natural

gas supplier in Hungary the tigáz group contin-

ued to inform hosts of clients on the advan-

tages of “tigáz 1000mester” service, offering

quick, convenient and cost efficient solution

for its customers in resolving emergency situ-

ations at home.

The company’s loyalty programme has been in

place since April 2012, whereby we reward our

consumers’ loyalty by offering various servic-

es and goods on discount prices. Some 51 000

of our customers joined the loyalty programme

by the end of 2015.

In cooperation with eni hungaria 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

energiamozaik corporate magazine tigáz e-invoice tigáz loyalty programme

point collection card developed for its retail

consumers and the employees of its corporate

clients. The point collection card has been re-

quested by some 51 600 of our customers.

tigáz group’s commitment to environmental

protection is reflected by the application of

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

paper-based invoices and cheques customers

can manage administrative processes relat-

ing to gas bills on-line. Since 2015 electronic

invoice service is available on our website as

well. Costumers who decided to use our new

electronic invoice presenting and payment

service are able to check their bills and to ef-

fect credit transfers, direct debit or credit card

payments online.

In accordance with legal requirements unified

gas bills are provided to universal service cus-

tomers by the tigáz group as well. Considering

environment protection and economic efficien-

cy aspects the company sends three part in-

voices 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.

customer service office

30 | Sustainability report 2015

Relations with customers and consumers | 31

Electronic document managementsystem (DMS)In regard to customer management tigáz group

focuses on sustainability considerations. Ac-

cordingly, in order to cut down on office sta-

tionery use in our administrative procedures

the company has introduced an electronic

document management system (DMS) in re-

gard to all of its administrative procedures and

modernized its printers.

In 2015 tigáz group received cca 1.5 million

documents, in other words, some 4-8 000 con-

signments were processed each day. Some 8

million of documents are stored in the central

archive, making up some 14 000 metres of

documents. With the aid of the electronic docu-

ment management system 96 % of the docu-

ments received are processed electronically,

without the use of any paper. (The DMS is suit-

able 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.)

tigáz group has rerouted the mailboxes of its

sites to the company headquarters in Hajdús-

zoboszló, and mailboxes at the sites are only

used for internal paper-based correspondence,

along with some dedicated mailboxes to which

professional organizations request consign-

ments that need to be filed in a paperbased

form as well. As a result of the development

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.

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 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 identifiers

to the outbound letters, thus the inbound and

the outbound documents relating to a given

case can be electronically linked together and

referenced. The mailing requirements pertain-

ing to the outbound letters are electronically

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 carried out

accordingly.

In summary: by the introduction of the elec-

tronic document management system the-

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.

Since September 2015 tigáz group decided to

use recycled paper in all printers and copying

machines operate in the company’s offices.

Recycled paper has a lower impact on environ-

ment than the regular white one because:

1. it is not manufactured with cellulose (di-

rectly coming from trees purportedly grown for

this use) but by using recovered paper as a raw

material;

2. it is not “whited” using chlorine products

(very cheap but highly polluting for the water

table);

Paper cunsumption (A/4 sheet / month)

Annual paper consumption (A/4 sheet)3. its manufacture requires less water and en-

ergy.

In the last 4 months of 2015 tigáz group’s recy-

cled paper consumption accounted for approx-

imately a quarter of the yearly office paper con-

sumption. Part of the group’s administration

forms and corporate publications are made of

recycled paper too, considering applicability

and cost efficiency aspects as well.

dokumentum center

Rate of recycled paper in 2015

68%

32%

normal paper

recycled paper

32 | Sustainability report 2015 Relations with customers and consumers | 33

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 efficiency and responsible behaviours

In the sustainability menu of tigáz 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

Contact center service

The number of tigáz group customers ranged

up to 1 192 000 people on the regulated mar-

ket in 2015 and as a result, this extensive cus-

tomer 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/registra-

tion), in addition to applications accessible on

smart phones. tigáz group continues to adapt

the customer relations channels and their re-

spective capacities to changing customer/

consumer habits. The extension of the service

area, geographic distribution, infrastructure

and traffic development administration of is-

sues is gradually diverted to telephone and

on-line customer channels, providing a more

convenient and wider ranging option for admin-

istration of issues.

tigáz group received customers in 8 perma-

nent customer service offices and in 73 ad-

ditional offices in 2015. Additionally, general

Budapest

Debrecen

Eger

Érd

Miskolc

Nyíregyháza

Salgótarján

Szolnok

Main customerservice offices

customer service information are provided to

customers in 79 additional small settlements

just as well as to get access to document

forms. Customer service offices are easily ac-

cessible to the population of the respective

regions because they can be found in central

places and readily accessed by means of com-

munity transport. tigáz group provides a cus-

tomised single entrance complex administra-

tion 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 pro-

fessionally competent key account managers.

In the customer service offices operated by

tigáz group itself the administration procedure

has been accelerated by the introduction of the

modern customer call system and the appoint-

ment reservation option through the internet,

thus only a few minutes waiting time is neces-

sary even in the case when customer turnover

is the highest (number of customer contacts

in 2015: 436 512; average waiting time: 5.44

minutes). In order to enhance comfort of the

customers, the company provides hostess

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 in-

Since the end of 2013 the tigáz application de-

veloped for smartphones is publicly available,

it can be downloaded from the Google Play and

Apple AppStore internet stores. Considering

the fact that the number of visitors arriving

from mobile devices is constantly growing,

the version of our website optimised for nar-

row screen devices is available since 2011

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

functions of the homepage can be accessed in

a simplified form.

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

limited to online balance queries, account his-

tory or heating value queries and for dictating

customers the function of bill estimates, fur-

ther reducing the necessity for paper based

administration efforts. Electronic invoice and

payment services are also accessible on tigáz

smartphone application since 2015.

In order to allow efficient administration elec-

tronic sales services are also developed on

a continuous basis, so that customers could

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

In 2015 tigáz group participated in the yearly

consumer satisfaction survey carried out by

the Energy and Public Utility Regulation Au-

thority, taking its findings into account in the

development of its products, services and its

customer management system.

formation 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 disputed issues are served

by a voice recording system operated in the

permanent customer service offices and re-

cording the conversation of customer adminis-

tration. Information is provided to customer in

the information material of the media playing

system and on the website / homepage on the

average periodical loads of the customer serv-

ice offices, thus assisting timing of administra-

tion to periods when waiting time is shorter.

The number of calls handled by opera-

tors in the Contact Centre in 2015 was

697 860, average waiting time was 20 sec-

onds.

According to the changes in the consumer hab-

its tigáz group continuously develops its web-

sites (www.tigaz.com, www.tigazdso.com)

the primary function of which is to provide ac-

curate and detailed information, including an

online customer service operation.

Personal customer service 2015

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

34 | Sustainability report 2015 Relations with customers and consumers | 35

06 80 300 300!

gas demand, making appointment for techni-

cal issues, issues related to consumers to be

protected, communication related to loyalty

programme 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

2015, in addition to dictating meter readings,

the telephone system offered the opportu-

nity to administer the following issues: billing,

contract related communication, reporting

be called free of charge round the clock to

report gas leakages and operating troubles

(+36 80 300 300).

Call center Smart phone application

make the necessary preventive steps to pre-

vent a lengthy administration procedure,

whether it goes about dictating meter readings

or settlement of overdue invoices.

By the end of 2015 more than 18% of our cus-

tomers registered on tigaz.hu website which

means more than 220 000 users. Extended

services and the monthly electronic newslet-

ter are available to registered customers, in

which continuous information is provided on

services and events of the gas market. The

newsletter also contains additional 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 on-

line functions include monthly meter reading

dictating, querying bills and current account

balances, bill payment and the function of pre-

liminary billing estimates. Additionally half of

all registered users take advantage of at least

one from the options of reminders to meter

reading dictating periods, payment notices,

and new bill e-mail notice services, which also

make electronic administration more conven-

ient and comfortable.

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 separate organi-

zational 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 fol-

lowing receipt by the company.

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 2015 to 11 577

consumers to be protected in average.

Illegally and unmetered off-taken gas may

result in life threatening situations in an over-

whelming majority of the cases, beside causing

losses to the community, therefore combating

illegal tampering is a key task of tigáz group for

which it acts consistently and by strict adher-

ence to the legal provisions, in collaboration

with the police in many cases. Within the tigáz

group service area 2086 incidents of proven il-

legal gas withdrawal were revealed in 2015. As

not every technically demonstrated cases can

be charged onto the users due to legal and of-

ficial constraints, this number is a lot higher in

reality. As a result of the consistent work car-

ried out in the past years the amount of gas off-

taken illegally or without a valid contract was

reduced further in 2015.

Customer calls Number of self-service operations (IVR+sms+web+smartphone app)

Average waiting time in the Call Center (sec)

Complaints Complaint management – comparison 2013-2015

tigaz.hu webpage statistics 2013 2014 2015

Users nr. 1 204 835 1 216 447 1 484 641

Page view nr. 10 658 466 9 802 183 11 127 928

Opened pages on the average nr. 3,78 3,48 3,45

Average time of visits min/sec 2:34 2:28 2:33

number of incoming callsnumber of handled calls

2013 2014 2015

0

1000

2000

3000

4000

10%

7%

3%

36 | Sustainability report 2015

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 in-

structions, 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 employees, communities

within the area of operation and of suppliers

is of paramount importance for the company.

Therefore our company carries out its opera-

tions in the field of health and safety with a

view to the principles of precaution, preven-

tion, protection and ongoing improvement, as-

signing the appropriate roles and responsibil-

ity 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 2015 in

order to enhance safety:

Training, education:

• Opportunities to deepen technology re-

lated knowledge, to practice the use of

tools and equipment applied in working op-

erations involving dangerous gases and to

simulate the impacts of exploding natural

gas are provided in the demonstration field

of Miskolc training center.

• Professional training sessions were organ-

ised for the staff members of the Network

operation, Network controlling and Net-

work management organizations.

• Training of contractors and suppliers were

provided in Health, Safety, Environment –

HSE topics including safety at work train-

ings.

• 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.

• On each site of the tigáz group site specific

emergency drills were organised and im-

plemented.

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

experiences.

• 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.

awareness raising and enhancement of

sensibility:

• A publication under the title ‚HSE rules’

were developed for workers of contracted

People | 37

partners working at the sites of tigáz group

in order to increase efficiency of the train-

ings.

• An HSE traning video made in 2014 was in-

cluded into the periodic HSE trainings, and

other 2 training videos were made (under

the titles ‘Dangers of suppliers’ activities”,

‘Hazards of mechanical and manual han-

dling’).

• Work safety training materials were devel-

oped based on the experiences of the con-

trols.

• HSE trainings were provided for staff of

the contractors working at the sites in the

fourth qarter of 2015 (12 people).

• In the light of experience gained list of

questions of on-site checks related to HSE

control system was enhanced.

• Protective equipment satisfaction survey

was carried out involving manual work-

ers in the fourth quarter. We can conclude

that the staff is satisfied with the protec-

tive equipments (98% rated as appropriate,

good or excellent).

• As part of the ergonomic development of

suitable protective equipments during

the summer period, flame-resistant, long-

sleeved summer t-shirts were provided for

80% of colleagues concerned by whom the

new protective clothing received a positive

response. Further protective equipments

were selected (for example flame-resist-

ant vests) and being purchased. Testing of

new multistandard protective equipments

was started in order to develop protective

equipments used at welding processes.

• We received 23 signals in the framework of

‚Safety competition’ in 2015.

• The page of the HSE organization was set

up on the internet interface to strengthen

in-house communication channels, and

HSE related attention provoking and in-

formative articles are continuously pub-

lished on the corporate News portal.

• In each year in May and June the series of

HSE days programmed events has been im-

plemented since 2013 for both white collar

and blue collar staff:

– 737 people attended at 6 locations for a

period of 6 hours in 2015,

– 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 person-

nel. Topics covered: traffic safety, fire

fighting with disaster management of-

ficers, nutrition from the perspective of

a dietetic professional; the benefits of

physical excercise; first aid information

in a funny way, waste management,

dangers of wasp sting, stress manage-

ment and handling difficult situations,

energy saving tips, etc.,

– fire drills were organised on the venues

of events, with 68 people fighting real

Number of injuries

Severity rate

Frequency rate

Safety data 2013 2014 2015

Training hours on safety (hours) 22 885 13 428 12 384

Safety audits (nr) 46 46 45

Safety expenditures 2013 2014 2015

Total safety expenditures thousand Ft 400 000 386 000 409 790

fires in 2015,

– 462 employees participated in a total of

1 171 organized medical screenings,

– stress management related group ex-

ercises were attended by 83 persons in

2015,

– the creativity of our staff members is

also used as part of the series of such

events. A competition was announced

in 2015 entitled “We and the safety”. 29

employees submitted 11 graffiti works

and the writing competition entitled

„Spell of words” resulted in 8 entries..

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

38 | Sustainability report 2015

an se ary sc

Secondary school diploma

College diploma

University diploma

Less th cond hool diploma

an se ary sc

Secondary school diploma

College diploma

University diploma

Less th cond hool diploma

an se ary sc

Secondary school diploma

College diploma

University diploma

Less th cond hool diploma

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.

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

2015 just like in the previous two years.

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. Teleworking was

an option for 31 persons in 2015.

The company keeps on broadening the coop-

eration with a large number of various busi-

ness partners including hotels, sports institu-

tions where tigáz group employees may get

discount in recreational activities with their

families. A collective life and accident insur-

ance policy was taken out by tigáz group for its

employees, 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

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

Occupational health care services Occupational health care expenses

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

People | 39

Workforce management 2013 2014 2015

Employees (as of december 31) 1 522 1 424 1411

- Man 64% 65% 67%

- Woman 36% 35% 33%

Home office 37 39 31

Number of temporary workers 163 134 147

- Of which woman 78% 76% 71%

Employees age band

Employees’ qualification

2013

2014

2015Job classification

2013

2014

2015

01 00 2003 00 4005 00 600050100150200250300

67%

18%

14%1%

2013 2014 2015

0

500

1 000

1 500

2 000

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

rotation of jobs. tigáz group runs an idea man-

agement system, where employees are free to

submit ideas and proposals. The purpose of the

system is to improve operations and cost effi-

ciency. Colleagues submitting the best ideas

are recognised.

1 411 persons were employed by tigáz group

on 31 December 2015, and 4 additional per-

sons were delegated by eni s.p.a. to assist the

company’s works.

4 Italian employees in 2015 where appointed to the position of director by the parent company.

40 | Sustainability report 2015

Relations with trade unions

Trade Union at tigáz group has a history of

more than 50 years. It has always been essen-

tial to company life and it participated in impor-

tant 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, Nyíregyhá-

za, 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 | 41

former positions. The option for unpaid

holidays is also provided by the company;

• in the event of 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 female

employees based on equal opportunities;

• 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

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 40

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: one of

the five executive positions available at tigáz

group was taken by woman and four by men in

2015. Sixteen of the 36 middle level manager

positions were taken by ladies. At the team

leader level, 26 female team leaders and 36

male team leaders were employed by the com-

pany. In the Collective Agreement the Compa-

ny paid special attention to the honour of Core

Guard members and in 2015 more than 38% of

the Core Guard members were women.)

Equal opportunities

tigáz pays special attention to employment

of workers of different ages, to prevent em-

ployment discrimination, and to eliminate

prejudices about “risky” employees. Based on

good corporate practices applied by the com-

pany tigáz group won the “Diverse and Multi-

generational Organization TOP10” award in

2015, and also joined to the Diversity Charter

launched at the award ceremony as a founding

member and as an ambassador. The Diversity

Charter sets out the European Union’s policies

on workplace anti-discrimination and equal op-

portunities and promotes its message among

employers.

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.

The ratio of female employees in management

position was 37.6% in 2015, referring the ratio

of ladies taking the positions of directors, mid-

dle 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

Women employees 2013 2014 2015

Women employees in service % 36,2% 35,3% 33,4

Women in managerial position (directors, senior and middle managers) % 38,2% 38,1% 45,6

Employees on parental leave as of 31 December nr. 16 19 28

42 | Sustainability report 2015

boszló, Debrecen, Gödöllő, Szolnok, Miskolc),

used primarily by women. Additionally, sports

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.

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.

Since 2012 an in-house trainer team operates

in the company providing team building and

basic capacity building trainings to company

employees.

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

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-

People | 43

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 further qualifications or a

second degree were attended by 26 persons

in 2015. Language programmes were taken by

nearly 150 persons of the employed staff the

main purpose of which was to support the ac-

quisition of marketable language skills.

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. The same periodi-

cal notifies personnel of the culture, leisure,

outdoor and sports programmes. Professional

contents related to Health, Safety and Environ-

ment (HSE) are presented in a separate column

in the News Portal, with editors in charge from

the experts of the HSE organizational 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” continued in 2015 with

the fundamental principle that the company

gave donations to selected organisations and

beneficiaries supplemented with the volun-

teering work and private donations of the em-

ployees. HSE days were organised in 2015

again. This series of events is implemented

at the priority sites of tigáz group. The pro-

grammes involve programme elements organ-

ised by professional partners (for instance,

the police, the fire department, disaster man-

A manager development training programme

for newly appointed group leaders and for the

new generation of managers was re-launched

in 2015, in cooperation with the in-house

trainers. The purpose of the programme is to

develop management competencies and to

strengthen the role and awareness of leader-

ship.

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 2015.

In 2015 the training of personnel intensively

exposed to workplace stress was put in focus,

nearly 100 control mechanics participated on

conflict and stress management trainings ses-

sions provided by external trainers.

Training was provided by the company in

37thousand hours in 2015. Such training

included capacity building trainings, qual-

ity assurance, safety at work, environmental

protection, information technology, economic

and language trainings. A part of the trainings

were conducted by external service providers,

whilst most of the capacity building trainings

by the in-house team of trainers.

agement) in which employees may participate

personally and try for themselves how to use

a dry powder fire extinguisher in live situa-

tions 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.

The 45th tigáz Sports Days was organised

in 2015 to employees, where our colleagues

could compete in 9 different sports both in-

dividually or as a member of teams, men and

women alike.

In 2015 to improve employee engagement we

launched an initiative called “Bring your child

to work” for the first time, at two company

sites. On the one-day program, the children

of the workers could get an insight into their

parents’ place of work, while colorful children’s

programs were allowed to participate on this

day during the summer holidays.

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. In

2015 the Communication Day was organized

in the spirit of innovation, sustainability

and cost efficiency: the event took place at

Hajdúszoboszló site with the participation of

the management, middle managers and team

leaders, as well as the Core Guard members

and Man/Woman of the Year Award candi-

dates. The other colleagues were able to follow

the presentations held by the Chairman and

directors on live internet broadcasts at vari-

ous sites (Budapest, Debrecen, Eger, Gödöllő,

Hajdúszoboszló, Miskolc, Nyíregyháza, Szol-

nok) keeping them informed. In addition, the

video recording and photos of the event were

published on intranet for those who missed the

live broadcast.

tigáz group conducted satisfaction surveys in

the internal business units concerning the op-

erations of the internal service provider organi-

sations in 2015, just like in the previous years.

Based on the survey results an action plan

was developed intended to enhance in-house

customer satisfaction level which also has an

impact on the customer satisfaction level in

order to promote organizational development.

44 | Sustainability report 2015

environment

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.

Since September 2015 tigáz group decided to

use recycled paper in all printers and copying

machines operate in the group’s offices, reduc-

ing the company’s impact on the environment.

Energy efficiency

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:

• Heating operation

– tigáz entered into an energy consul-

tancy contract with an outside contrac-

tor to monitor the heating systems at

sites with higher gas consumption, and

make proposals for minimal interven-

tions for energy saving. Assessment of

results is in progress (extent of the sav-

ings achived can be measured after the

heating season).

Environment | 45

the purposes of exploration of metering differ-

ences along the network, which assumed the

task – among others – to detect methane dis-

charges 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 in the table 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:

– Offering electronic invoicing/billing so-

lution to our costumers by cooperation

with partners and developing our web-

site.

– tigáz Smartphone application also con-

tributes to paper use reduction in cus-

tomer 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.

A material and waste balance sheet filing sys-

tem was introduced in 2015 at tigáz in order

to record the use of hazardous material and to

detect hazardous waste from these materials

that makes material usage and waste collec-

tion traceable.

In 2015 the industrial non-hazardous waste

volume significantly decreased because the

amount of ferrous scrap (compressed gas me-

ters) decreased by 66 500 kg, while in case

of hazardous waste the amount of electronic

waste decreased by 1 500 kg and the amount

of toner waste decreased by 1 000 kg (due to

the modernisation of our IT infrastructure).

In 2015 at Hajdúszoboszló site separately

collected waste paper (office paper waste,

paper packaging materials, documents to

be destroyed), PET bottles and other plastic

packaging materials are stored separately and

transferred directly to the waste processing

company in larger quantities. By implementing

this solution we made a step forward in paper

and plactic waste management; instead of dis-

patching selective waste in small quantities

we transfer it in large quantities, so besides

the environmental and economical advan-

tages of separate collection it contributes to

transporting and processing cost efficiency as

well.

Dispatched quantities in 2015:

• mixed paper waste: 21 814 kg

• plastic packaging material waste: 245 kg

Environmental awareness

• Environment protection related articles

are published on the company intranet

regularly.

• Environmental awareness raising become

an integral part of periodical HSE trainings.

• One of the objectives of HSE days event

series is to raise awarness of tigáz group

employees on nature conservation and en-

vironment protection.

• At special contractor meetings we draw

attention of our contractors to the environ-

mental aspects of their activities.

Health, safety and environmental issues in Hungary are regulated by laws and regulations based on EU

directives and regulations in effect 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.

• Reducing the specific fuel consumption of

motor vehicles and pollutant emissions

– we continued to control the speed of ve-

hicles in accordance with the practice

of previous years. Avoiding speeding

specific fuel consumption of vehicles

can be reduced. In 2015 average fuel

consumption was 6,32 litres compared

to 6.75 litres in 2014.

– in 2015 tigáz fuel consumption was

lower by 20 000 litres compeard to the

previous year, resulting reduction in

pollutant emissions proportionately.

– concentration of user need by “carpool-

ing”

– reduction of the number of the fleet, de-

mand concentration

– operating work management system.

• Development of IT tools reduce the compa-

ny’s impact on the environment by assist-

ing and promoting spread of web meetings,

and rationalization of company related

trips.

• tigáz group was one of the first companies

in Hungary to deliver the Energy Efficiency

Assessment required by the new “Act on

energy efficency” (Act LVII of 2015). The

work was prepared by internal staff, assist-

ed by an external consultant; certification

prescribed by the law was deposited into

the Energy Regulator MEKH system on 4th

December 2015.

Atmospheric emissions

One of the most important impact of tigáz

group on the environment is the methane dis-

charge originating from leakages.

The company has set up a working group for

Environmental management 2013 2014 2015

HSE audits nr. 46 46 45

environmental expenditures and investments thousand Ft 105.3 140.5 89

Energy 2013 2014 2015

Electricity Gwh 2,7 2,8 2,5

Natural gas toe 1 512,9 1 116,7 731,9

Light oils, petrol, diesel toe 843,2 823,2 804,6

Total energy consumption toe 2 356,1 1 939,9 1536,5

Water management 2013 2014 2015

water use thousand m3 11,5 11,2 15,7*

waste water discharge thousand m3 11,5 11,2 15,7*

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

* A pipe breakage at Hajdúszoboszló site was repaired; tigáz was refunded by local water supply company.

Atmospheric emission 2013 2014 2015

Length of pipeline km 33 676 33 699 33 720

Distributed gas on secondary network Mm3 2 171 1916 2 114

CO emission t 8,6 7,3 7,4

CO2 emission t 6 603,9 5 168 4209,25

NOx emission t 3,8 3,6 3,7

CH4 emission t 12 493 10 454,5 9 758

Waste management 2013 2014 2015

Hazardous waste kg 7 492 6 695 4 534

Industrial non hazardous waste kg 244 957 217 284 133 500

Municipal waste m3 1 874 1 946 1 748

Separately collected waste m3 703 628 992

46 | Sustainability report 2015 Certificates | 47

Certificates

48 | Sustainability report 2015 Certificates | 49

50 | Sustainability report 2015 Certificates | 51

TigÁz Tiszántúli gázszolgáltatóZártkörűenMűködőRészvénytársaságHajdúszoboszló, Rákóczi u. 184.

tigaz.hu

Publisher: TIGÁZ Zrt.

Editor: Lorenzo Maina

DTP: Kommunikáció és Imázs

Contact: imazs@tigaz.hu

June 2016