Business
sustainability
and responsibility
1. Customers
Talgo has a commercial and customer management policy and a fair competition policy, together with an extensive network of sales representatives around the world, particularly in the areas of greatest railway activity such as India, North Africa, the Persian Gulf, Latin America and EU countries.
In 2022, Talgo continued to consolidate markets and collaborate with existing customers. For example, it won a contract in Egypt for the purchase of seven night trains and their maintenance or the expansion of RENFE and Uzbekistan’s fleet services projects.
| 2022 | 2021 | |
|---|---|---|
| No. of customers in the year | 17 | 17 |
| No. of new customers in the year | 1 | 0 |
| 2022 | 2021 | Change | |
|---|---|---|---|
| Total customer complaints and claims | 6 | 7 | -14.3% |
2. Shareholders and investors
The global economic outlook deteriorated through 2022, causing expected global GDP growth rates to decline repeatedly and raising fears of recession. Geopolitical instability and economic uncertainty, as well as trade tensions between major economies and rising inflation, have triggered the onset of a cycle of balance sheet reduction and interest rate increases by central banks, thus causing high volatility.
Talgo’s shares were hit hard by market expectations about the impact of inflation and supply chain disruptions on its business, resulting in a 39% price drop for the year.
Thus, the share started the year 2022 with declines until reaching a low of €2.47 in October, before starting a progressive recovery that led it to close the year at €3.30.
The 10 million euro Remuneration Programme presented and approved in 2022 reinforces Talgo’s commitment to its shareholders.
Talgo’s average daily trading volume for the year increased significantly, up +87% to 175,000 shares traded daily.
In addition, the Board of Directors approved to submit to the Annual General Meeting a remuneration programme of 10 million euros, which was approved by the Annual General Meeting and implemented during the year. This programme was implemented through, on the one hand, a Flexible Dividend or Scrip Dividend, which provides the opportunity of receiving the dividend in cash or in shares according to the shareholders’ preferences and, in addition, a Share Buyback Programme whose purpose is to eliminate the dilutive effect coming from the issue of new shares which were delivered to 83% of the shareholders who elected to receive the dividend in shares.
3. Employees
The Talgo Group has a high degree of employment stability, as reflected in its permanent hiring rate of 91% in 2022. Talgo’s workforce in 2022 averaged 2,733 people (1,865 in Spain and 868 in subsidiaries), an increase of 2.36% compared to 2021.
| Professional classification | Female | Male | Total |
|---|---|---|---|
| Senior management | 2 | 5 | 7 |
| Management | 8 | 46 | 54 |
| Middle management | 70 | 341 | 411 |
| Technical, administrative and other | 304 | 1,957 | 2,261 |
| Total | 384 | 2,349 | 2,733 |
Talgo remains a high quality employer, increasing its average workforce by 2.36% in 2022 and with a 91% permanent employment rate.
Diversity
Talgo has an equality committee made up of members of management and workers’ representatives, which, among other functions, is responsible for promoting the implementation of the equality plan that the group implements and for monitoring and evaluating the degree of compliance with the measures adopted.
Talgo works to implement measures that enable greater balance and gender equality in different positions and departments, continuing in 2022 with initiatives that increase the participation of women in positions of responsibility.
Talgo continues to be a member of the Charter for Diversity, an initiative led by the Diversity Foundation. It has also renewed its “CEO for Diversity” alliance, which promotes innovation in diversity, equity and inclusion strategies in Spanish companies, an initiative of the Adecco Foundation and the CEOE.
Labour integration of groups at risk of exclusion
At the end of the 2022 financial year, the Talgo Group had 27 employees with a disability of more than 33%, of whom 7 are women and 20 are men. These people are represented in all categories of the workforce.
Talgo has contributed, through the agreement signed with the Adecco Foundation, to the “Employment for All Project” through which more than 4,000 people have joined the labour market, 3,000 of whom are people with disabilities, and also to the “Mental Health Project” through which more than 800 people have started working.
Within the framework of the agreement signed with the Adecco Foundation since 2007, Talgo Spain has been developing a programme called “Plan Familia” (Family Plan) to provide advice, guidance and development of skills and abilities for family members of employees up to 65 years of age who have a disability.
Training
Talgo has a comprehensive annual training plan for the entire organisation that includes actions aimed at developing skills, competencies for project execution, technical, regulatory and occupational risk prevention aspects, ethical and crime prevention aspects, not to mention language training provided through the company’s language school.
| 2022 | 2021 | Change | |
|---|---|---|---|
| Total number of training hours | 131.717,9 | 93.036,0 | 41,6% |
| No. of training hours per employee (average per year) | 48,2 | 34,9 | 38,1% |
| No. of hours of online training | 16.067,1 | 7.296,0 | 120,2% |
| No. of hours of classroom training | 115.650,8 | 85.741,0 | 34,9% |
Occupational health and safety
In 2022, multiple projects and activities have been carried out with the aim of improving and consolidating the working conditions of Talgo employees and collaborators.
| 2022 | 2021 | Change | |
|---|---|---|---|
| No. Accidents (total) | 188 | 197 | -4.57% |
| Number of accidents with sick leave | 53 | 17 | 23.26% |
| Severity rate(1) | 0.22 | 0.25 | -9.09% |
| Deaths per accident | 0 | 0 | 0% |
4. Environment
The Talgo Group has a management system on which all environmental and sustainability measures are developed.
Products that drive the development of the circular economy and eco-design
Transparent and consolidated ems (based on ISO 14001)
Minimising impacts and improving sustainability
Fight against climate change
Development of the circular economy and eco-design
The manufacture of trains, based on eco-design, involves the use of materials with high recyclability and recoverability values. Activities carried out in the organisation in this area include the verification and publication of the Environmental Product Declaration (EPD) of the Talgo Avril model in 2022.
Meanwhile, development continued in 2022 of a hybrid train allowing flexible operation (hydrogen or electric) designed for Talgo’s commuter/Regional Vittal platform. A scalable solution with plug and play concept, which will also allow it to be applied in other train models and in conversions from diesel to hydrogen.
Talgo is committed to caring for the environment both in its management and in the creation of eco-sustainable products.
Combating climate change
In 2022, Talgo set a global target of reducing direct emissions per unit of production by 5%, as part of its commitment to the need to control and reduce the greenhouse gas emissions it generates in the course of its activities.
To monitor greenhouse gas (GHG) emissions and identify improvements to reduce them, an annual carbon footprint report is drawn up based on the GHG Protocol methodology. Emissions are thus expressed in kilograms of carbon dioxide equivalent.
Emisiones
| 2022 | 2021 | Change | |
|---|---|---|---|
| CO2 emissions: factories and workshops. Scope 1 (tCO2eq) | 1,765 | 2,369 | -25.5% |
| CO2 emissions: indirect. Scope 2 (tCO2eq) | 323 | 251 | 28.7% |
| CO2 emissions: other indirect. Scope 3 (tCO2eq) | N/A | N/A | 6.9% |
| GHG emissions intensity Scope 1+2 (tCO2eq/employee) | 4.78 | 4.57 | 4.6% |
| GHG emission intensity Scope 3 (tCO2eq/employee) | N/A | N/A | 6.7% |
| Emission of substances affecting the ozone layer (kg) | 0 | 11.72 | -100% |
Consumos
| 2022 | 2021 | Change | |
|---|---|---|---|
| Electricity (kwh) | 10,116,629.04 | 10,903,076.00 | -7,2% |
| Electricity from renewable sources (%) | 100% (*) | 100% (*) | 0% (*) |
| Electricity from non-renewable sources (%) | 0% (*) | 0% (*) | N/D |
| Fuels: natural gas boilers (KWH*) | 6,907,801.6 | 7,632,841.7 | -9.5% |
| Fuels: automotive diesel oil (m3) | 30.9 (*) | 48.25 (*) | -35.9% (*) |
| Fuels: boiler oil (m3) | 92.5 | 231.7 | -150.0% |
| Energy intensity (kWh/employee) | 26,660 | 27,0245 | -1.0% |
| Paper (t) | 9.9 (*) | 8.7 (*) | 13.7% |
| Water consumed (m3) | 17,555.1 | 21,986.3 | -20.1% |
| Solvents and paints (t) | 26.9 | 31.9 | -15.7% |
(*) Data for Spain only. Subsidiaries N/A.
Minimising environmental impacts and improving sustainability
As a factor in minimising Talgo’s environmental impact, 100% of the energy consumed at the group’s manufacturing centres in Spain comes from renewable sources. Along these lines, the installation of solar panels at Talgo-owned factories in Spain is planned for 2023 to promote self-consumption of energy.
6. Society
The main mechanism and organiser of the Group’s social action is the Talgo Foundation, which was established in 2013 with the aim of contributing to meeting global and national challenges in the social sphere.
In 2022, Talgo’s total investment in social action projects increased by 4.6%, exceeding 330,000 euros in a total of 30 initiatives (10 more than in 2021). It is estimated that the direct impacts achieved in the Company reached 15,000, representing a tremendous advance compared to 2021 (2018) for Talgo in its role as a force for the improvement of its immediate social and economic surroundings.
Data and indicators
| Social action | 2022 | 2021 | Change |
|---|---|---|---|
| Total investment in projects (€): | 332,331 | 317,540 | 4.6% |
| No. of projects | 30 | 20 | 50,0% |
| No. of awards | 21 | 6 | 250% |
| No. of scholarships | 343 | 784 | -56.2% |
| Estimated direct impacts | 15,000 | 2018 | 643.3% |
Promoting education, training and qualification
Focused on professional development, technology and innovation in the railway sector as drivers of change, activities in 2022 included:
- Collaboration with a vocational training centre in Kazakhstan for the training of young Kazakh girls.
- Creation of the Aula Talgo, a project led jointly with the School of Industrial Engineering of the Polytechnic University of Madrid, which contributes to teaching, dissemination, research and technology transfer in the field of railway engineering.
- Lending visibility to women in the world of railway technology,
- Collaboration with the CSIC in the stimulation of scientific talent.
- Promotion of vocational training as an employment-oriented educational alternative of excellence.
