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ACCIONA develops a methodology for measuring the socioeconomic footprint of its activity

06/27/2016

In collaboration with consultants EY, ACCIONA has analyzed the impact of its renewable energies activity in Mexico and South Africa.

ACCIONA, collaborating with consulting firm EY, has developed a methodology for measuring the socioeconomic footprint of its activity in the markets where it operates. The theoretical development of the methodology was accompanied by the performance of two first studies, measuring the contribution of ACCIONA Energy’s activity in the renewable sector in Mexico and South Africa, which have allowed us to complete, test and correct the model to ensure its validity. The project, entitled ACCIONA: a business strategy with social value, forms part of the Sustainability Master Plan and was borne out of a concern and need for quantifying reliably the contribution of the Company to economic growth, social progress and environmental equilibrium in the regions in which it is present. It contains a tool that quantifies in real terms the complete contribution of the Company and thus closes the circle of ACCIONA’s involvement in the communities in which it operates.

The research measures the effects of contribution to GDP, job creation and other social and environmental factors, such as community development investment and emissions reduction

The launch of this methodology began with the study of the impact of the renewable energy business (wind and photovoltaic) in two strategic countries: Mexico and South Africa. It will be extended progressively to other markets and activities with the ultimate goal of having a complete picture of ACCIONA's socioeconomic impact, broken down by country, division, business and project. 

 

The objective for 2016 is for the Energy business to measure its socioeconomic footprint in two additional countries, and to adapt the methodology to the Infrastructure division by conducting a pilot project. The methodology provides figures on the direct, indirect and induced impact on GDP and employment per MW of wind or photovoltaic capacity and, by extension, the overall impact of the MW installed by ACCIONA.
It also provides insights into other variables such as the contribution to energy security and independence, the value
of community action projects, avoided emissions of CO2 and other gases that are harmful to the environment, avoided water consumption, and land use. 

   

 

The socioeconomic footprint of ACCIONA Energy in Mexico
Contribution to Mexican GDP of 858 MW installed by ACCIONA

US$ 1.18 billion during the life cycle of the installations (26.5 years)

Contribution to Mexican GDP per MW (wind) installed by ACCIONA

US$ 1.38 million during the life cycle (26.5 years):

- US$ 0.908m direct effect
- US$ 0.338m indirect effect
- US$ 0.134m induced effec

Contribution to job creation* from 858 MW installed by ACCIONA

1,748 stable jobs during the life cycle (26.5 years):

- 1,166 direct
- 356 indirect
- 226 induced

Contribution to job creation per MW (wind) installed by ACCIONA

54 employee-years**:

- 30 employee-years during 1.5 years (turbines, development and construction of the facility)
- 24 employee-years during 25 years (operation and maintenance)

Contribution to energy security and independence

2,174 GWh (wind) produced by ACCIONA in 2014:

- Savings of US$ 20.5m on natural gas imports

Promotion of community development projects

- US$ 836,625 invested since 2010

- 16,500 people benefi ting

Emissions avoided by wind generation by ACCIONA in 2014 (2,714 GWh) - 1.1m tonnes of CO2, equivalent to emissions per capita of 245,000 inhabitants
- US$ 43m avoided in leviable climate change costs
- 2,400 tonnes of NOx
- 3,200 tonnes of SOx
- Health costs avoided: US$ 3m
Water consumption avoided by ACCIONA wind generation in 2014

- 1.7 million m3
- Equivalent to consumption of 13,000 Mexicans

Use of land for ACCIONA projects

- 100ha net increase in reforested area
- With an estimate value of US$ 79,000

 

*Direct effect: corresponds to ACCIONA Energy activity (without accounting for the intermediate inputs needed to manufacture the equipment and excluding own employees). Indirect effect: measures adjustments to production levels of all sectors in response to the demands for the pro-ducts ACCIONA needs to develop its activities. Induced effect: shows the effect of the increase of the purchasing capacity of consumers, resulting in an additional effect on fi nal demand.
** Job creation must be understood using the employee-years unit, which corresponds to an estimate of the number of employees at Full-Time Equivalent (FTE) during one year. For example:

• An individual working on the construction phase of a wind farm during 6 months will represent 0.5 employee-years.
• An individual working on the operation and maintenance phase during 25 years will represent 25 employee-years.

   

The socioeconomic footprint of ACCIONA Energy in South Africa
Contribution to South African GDP of 212 MW installed by ACCIONA

US$ 295 million between 2013 and 2015

Contribution to South African GDP per MW (wind) installed by ACCIONA

US$ 1.5 million during the life cycle (26.5 years):

- US$ 0.619m directly
- US$ 0.505m in supply chain
- US$ 0.378m in other sectors

Contribution to South African GDP per MW (photovoltaic) installed by ACCIONA

US$ 1.76 million during the life cycle (26.3 years):

- US$ 0.706m direct effect
- US$ 0.607m indirect effect
- US$ 0.448m induced effec

Contribution to job creation* from 212 MW installed by ACCIONA

9,647 employee-years (2013-2015):

- 4,074 direct
- 3,094 indirect
- 2,479 induced

Contribution to job creation per MW (wind) installed by ACCIONA

45 employee-years:

- 26 employee-years during 1.5 years (turbines, development and construction of the facility)
- 19 employee-years during 25 years (operation and maintenance)

Contribution to job creation per MW (photovoltaic) installed by ACCIONA

54 employee-years**:

- 41 employee-years during 1.3 years (equipment, development and construction)
- 13 employee-years during 25 years (operation and maintenance)

Promotion of community development projects)

- Fulfi llment of Broad-Based Black Economic Empowerment requirements
- Promotion of self-employed status
- School breakfasts for over 3,000 children

Emissions avoided by renewable generation by ACCIONA in 2015 (437 GWh)  - 0.4m tonnes of CO2, with US$ 15m avoided in leviable climate change costs
- 1,150 tonnes of NOx
- 2,500 tonnes of SOx
- Health costs avoided: US$ +2m
Water consumption avoided by ACCIONA wind generation in 2015  - 0.8 million m3

 

* Direct effect: corresponds to ACCIONA Energy activity (without accounting for the intermediate inputs needed to manufacture the equipment and excluding own employees). Indirect effect: measures adjustments to production levels of all sectors in response to the demands for the pro-ducts ACCIONA needs to develop its activities. Induced effect: shows the effect of the increase of the purchasing capacity of consumers, resulting in an additional effect on fi nal demand.
** Job creation must be understood using the employee-years unit, which corresponds to an estimate of the number of employees at Full-Time Equivalent (FTE) during one year. For example:

• An individual working on the construction phase of a wind farm during 6 months will represent 0.5 employee-years.
• An individual working on the operation and maintenance phase during 25 years will represent 25 employee-years.

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