2022 | 2023 SUSTAINABILITY IN ACTION
MLO manages and operates lines ML2 and ML3, integrating municipalities and connecting communities in Madrid, with a dedicated team and considerable investment in infrastructure and technical and human resources.

MLO PROFILE

Metro Ligero Oeste, S.A., known as “MLO”, operates as a concession holder responsible for the construction and operation of a light rail system that manages the ML2 and ML3 lines. These lines provide connections between the municipalities of Boadilla del Monte, Alcorcón, Pozuelo de Alarcón and Madrid, connecting to the transport network managed by the Madrid Regional Transport Consortium, which includes the Metro, suburban rail, and city and intercity buses.

Since July 2007, MLO has been in charge of the system’s operation and comprehensive maintenance, covering both infrastructure and rolling stock, with a team consisting of 224 people. Our headquarters is located in Ciudad de la Imagen, in the municipality of Pozuelo de Alarcón (Madrid). The initial project represented a significant investment of approximately 673 million euros for rolling stock, works, facilities, technical equipment and human teams.

COLLECTIVE BARGAINING AGREEMENTS AT MLO

At MLO we defend our workers’ right to collective bargaining and maintain a commitment to sustainable human management that is reflected in the collective agreements signed over the years, from the Company Agreement signed in 2009 to the most recent Convention on Metro Ligero Oeste Working Conditions signed in 2023.

PASSENGERS TRANSPORTED

In the previous Report, we highlighted the significant impact of the pandemic on the number of trips made in Spain, as well as travel’s progressive recovery over the last year. In the 2022-2023 period, demand continued to increase gradually as the situation stabilized, with 46% growth during this period.

Mobility habits have undergone significant changes, especially with regard to work, where remote working has been partially adopted in the business centres of the municipalities in our area. This trend has had an impact on demand during working days. However, it should be noted that, despite this, demand has increased by 41%.

Regarding weekends, we observed a more marked increase in the number of users on Saturdays (43%) compared to holidays and Sundays. Additionally, the afternoon rush hour expanded, starting from approximately 2:00 p.m. and continuing through 7:00 p.m.

We have continued to work closely with the CRTM to improve the service offered and adapt it to these new conditions.

GOVERNANCE STRUCTURE

At present, our shareholders consist of three outstanding business groups, all recognised for their prestige in their respective areas of activity.

GOVERNANCE STRUCTURE AND COMPOSITION

Our governance structure is responsible for decision-making and the oversight of social, environmental and governance impact management, and is based on the General Shareholders’ Meeting and the Board of Directors.

The annual General Shareholders Meeting is composed of five shareholders (two companies and three infrastructure funds), whose legal representatives set the meeting dates.

On the other hand, the Board of Directors meets four times a year and is made up of seven non-executive proprietary members, including the shareholders’ legal representatives and two members appointed by the Community of Madrid as the grantor authority, in an advisory capacity. In addition, they are supported by the Board of Directors Secretary from a prestigious law firm.

The average seniority of our Directors is approximately five years.

Representation at the executive level rests with our Managing Director, who is responsible for implementing the Board of Directors strategies.

Our governance structure, based on the General Shareholders’ Meeting and the Board of Directors, monitors the impacts on society, the environment and governance matters, supported by the diverse representation and accumulated experience of its members, with an executive approach headed by our Managing Director.

DESIGNATION AND SELECTION OF THE TOP MANAGEMENT BODY

Our Board of Directors is governed by the legal regulations established in our bylaws and in the partner agreement arrived at among the shareholders, which includes questions such as appointments and management of supplier contracts.

It is important to note that our Board of Directors assumes the responsibility of directing and supervising the company’s Sustainability Policy, although it delegates its management to our Management Committee.

In addition, in the area of compliance, the Board has appointed our current Director of Administration and Control as Director of Compliance.

CHAIRMAN OF THE TOP MANAGEMENT BODY

Our process for selecting the Chairman of the Board of Directors is to follow the proposal and election of the majority shareholder, which appoints one of its directors to this position.

Our Chairman of the Board is currently the representative of the biggest shareholder, abrdn, and does not exercise executive functions in the organisation.

Our Board of Directors ensures that sustainability is a priority in all our decisions and actions through active oversight.
ROLE OF THE TOP MANAGEMENT BODY IN OVERSEEING IMPACT MANAGEMENT

As the highest management body, the Board of Directors oversees the management of the impacts of good governance rigorously and regularly. Our Board meets four times a year, addressing issues related to sustainability at each meeting. During these meetings, the scorecards that reflect our performance in terms of sustainability are presented and analysed, as well as the strategic plan designed to promote sustainable practices in all areas of the organisation.

In addition, we issue global company reports on a monthly basis, detailing our sustainability actions and results. They include information related to our financial statements, the maintenance indicators of our main systems, user demand, accident rates, user complaints, fraud tracking and indicators included in our contract with the regional government.

These reports allow our Board to stay informed about progress toward achieving our sustainability goals and to make informed decisions to continuously improve our performance in this area.

In short, our Board of Directors plays an active and committed role in overseeing the management of good governance impacts, ensuring that sustainability is a priority in all our decisions and actions.

ROLE OF THE TOP MANAGEMENT BODY IN PRESENTING SUSTAINABILITY REPORTS

The responsibility for carrying out material analyses, gathering information and drafting the Sustainability Report lies with General Management and its Management Committee. The Board of Directors is responsible for reviewing and approving the draft report submitted.

CONFLICTS OF INTEREST

Our top management body is committed to always protecting the interests of all those involved in operations, implementing suitable procedures and measures to identify and resolve any conflicts of interest that may arise.

The members of our Board of Directors and our employees must exclusively prioritise the interests of the company, avoiding any personal activity that may generate conflicts of interest. Should such situations arise, a channel is provided to report them to the Legal Requirement Compliance Management, which is responsible for quickly detecting them and actively participating in their resolution.

COMMUNICATION OF CRITICAL CONCERNS

Any relevant matter that may involve reputational risks, penalties, legislative or operational changes, among others, is immediately referred by the Managing Director to the Board of Directors.

In addition, our general monthly reports include the list of interest group complaints for the relevant period.

KNOWLEDGE AND EVALUATION OF THE TOP MANAGEMENT BODY’S PERFORMANCE

With regard to knowledge and evaluation of the top management body’s performance, it should be said that we have no control over the background of the members of the Board of Directors. The evaluation of their training and performance lies with the majority shareholder.

REMUNERATION POLICIES

Regarding our remuneration policy, it should be noted that the members of the Board of Directors are not remunerated and none of the company’s executives is considered senior management. Moreover, we do not make a calculation of total annual compensation.

COMPANY MANAGEMENT
DELEGATION OF RESPONSIBILITY
FOR IMPACT MANAGEMENT

The Board of Directors delegates executive responsibility for managing our impacts on the economy, environment and people to the Managing Director. The Managing Director relies on the directors of the different areas, who are part of the Management Committee, to develop strategies in these areas.

INTERNAL STRUCTURE OF MLO

Our functioning is supported by various committees that constitute our management bodies. These committees operate under the coordination of the General Management, and their structure and functioning are detailed below.

MLO INTERNAL ORGANISATION

Strategy and Corporate Organisation Committee (CEOC), Internal Regime Committee (CRI), whose functions include strategic management of the organisation and oversight of human resources, including the disciplinary regime.

Works Council (CE), which is upon request. This committee is the representative and collegiate body for all workers as a whole, for the defence of their interests. The rights of information and consultation and the powers of the Works Council shall be those laid down in Article 64 of the Workers’ Statute.

The IMS(Integrated Management System) Audit Coordination Committee (CA), biannual, manages and plans the findings of the audits done on MLO by certification companies.

The Operational Health and Safety Committee (COSyS) mentioned in the previous report is now managed internally through the MLO Portal.

OPERATIONS

Project and Investment Oversight Committee (CSPeI), Integrated Management Committee (CGI), Operations Area Management Unit (UGZO), Change Management Technical Committee (CTGC), Legal Requirement Oversight Committee (CRL), responsible for the operational management of the company, follow-up of the Integrated Management System and compliance with applicable legal requirements.

SAFETY

Operational Railway Safety Committee (CSFO), Occupational Health and Safety Committee (CSS), Business Activity Coordination (CAE), Accident Investigation Committee (CIA), Crisis Committee (CC), Drug Addiction Oversight Committee (CDRG), where all matters relating to railway safety, occupational risk prevention and any other safety and emergency related issues at MLO are addressed.