Sustainability 2013 Social, environmental and financial report

The corporate governance is the tool through which EPM strengthens its relationship with the stakeholders that contribute capital for the funding of the company (the owner, the partners and the investors), so that the actions of the company lead to the generation of value for these groups.With this premise, in 2013 the organization designed corporate governance practices and mechanisms aimed at preserving such generation of value, with a sense of sustainability and enabling of the new business strategy.

This work comprised actions focused on strengthening the corporate governance practices in all the governance bodies of EPM and its business group, in which the following achievements were reached, among others:

Along with EPM’s owner, the Municipality of Medellín:

• Design of a proposal for strengthening the Macro-Agreement of Relationships; carried out jointly with the Municipality of Medellin.
• Revision of European public company management models, which included studies visit; carried out jointly by Medellín Mayor’s Office, EPM, and the French Federation of Local Public Companies.

At the level of boards of directors:

• Strengthening of the processes of evaluation of EPM’s main governance bodies, implementing the external consultancy for the evaluation of the Board of Directors, as well as the evaluation of the CEO’s management, by this body.
• Implementation of unified guidelines for the appointment and continuous training of EPM’s representatives in the EPM Group companies.
• Homogenization of the self-evaluation process of members of the EPM Group’s boards of directors.

At the Management level:

• Signing of the Governance Agreement by all the operative companies of the EPM Group in Colombia, with the purpose of formalizing the need to work jointly in the achievement of synergies that lead to a better operation at a national scale.
• Creation of a department within EPM’s organizational structure, which will be responsible of implementing, evaluating, and improving EPM Group’s Corporate Governance practices.
• Strengthening of the group vision from the implementation of the “EPM Group without Borders” Program and, within this program, the matters related to functions of the administrative staff, senior management committees, and board of directors committees, among others.

At the level of the relationship with the partners and investors:

• Strengthening of the relationship practices with the investors, officially highlighted by the Colombian Stock Exchange with the “IR” accolade.