Working with the people and their territories, we continue to build stories of progress - Informe de Sostenibilidad

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Working with the people and their territories, we continue to build stories of progress - Informe de Sostenibilidad
Working with the people and their territories,
    we continue to build stories of progress
Working with the people and their territories, we continue to build stories of progress - Informe de Sostenibilidad
Sustainable
management
Working with the people and their territories, we continue to build stories of progress - Informe de Sostenibilidad
Complementary
   topics
Working with the people and their territories, we continue to build stories of progress - Informe de Sostenibilidad
Innovation
Management
02
Sustainable
management    • Innovation Management_______________________________ 6
                  Highly innovative company____________________________ 14
                  Distributed resources_________________________________ 18
                  Smart city services and sustainable mobility______________22
                  Business platforms and services of the future_____________26
 Content
02
Sustainable
management

                  Innovation Management
          EPM continues to innovate and seek to be more efficient in its different processes to contribute
          to the harmony of life for a better world. This is how, starting from the corporate strategy,
          the business plan and strategic surveillance, it executes an innovation model that starts
          from sowing, undertaking, accelerating, growing and finally scaling options for new lines
          of business, new or improved products and transfer of technologies that allow business
          optimization.

          The Grupo EPM has matured in innovation management, incorporating the culture to
          innovate in its employees. It recognizes the importance of maintaining continuous learning
          and having a network of allies to make agreements or collaborative alliances, in an open
          innovation scheme that has allowed it, for example, to create the Center for Innovation,
          Entrepreneurship and Digital Transformation of Medellín- CIET, through an agreement
          between EPM and Ruta N for COP 12,000 million for the next three years.

          Likewise, it continues to promote entrepreneurship through the Capital Fund and the business
          accelerator by establishing a win-win relationship with 11 companies in which it has a stake,
          with whom it builds the required solutions with the quality and efficiency that the environment
          demands.                                                                                                               6
          Additionally, with work on innovation it contributes to the following SDGs: 7 - Ensure access to
          affordable, reliable, sustainable and modern energy for all, 9 - Develop resilient infrastructure,
          promote inclusive and sustainable industrialization, and foster innovation and 11 - Make
          cities and human settlements inclusive, safe, resilient and sustainable.

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02
Sustainable
management

                Business Strategy                                                                                                    Business growth
                                                           PMO                   Innovation Development
                  and Planning                                                                                                      and development

                                                                  Internal Ecosystem        Innóvate Grupo EPM

                                                                                                                 New Capabilities
                                                                                                                    Capital
                                                                         Seeds
         Corporative strategy
                                           1    2                Digital Transformation
                                                                  Internal Capabilities
                                                                                                                                                                            7
            Business plans                 3 4                                                               Growth or profitability
                                                                                                             of today’s businesses
                                          5 6                       FCP Companies
         Strategic Surveillance
                                    Management                           Third
                                     of innovation projects                                                                            FCP
          Business projects                portfolio
                                                                     Subsudiaries
                                                                                                            Accelerator

                                                                  External Ecosystem

                                    1. Mentoring                                   Innovate +
                                    2. Project coordination
                                    3. Portfolio management
                                                                                                                             New                 Divest
                                    4. Resource coordination
                                                                                                                          businesses
                                    5. Ways of working
                                    6. Direction

                                                                                                                            M&A

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02
Sustainable
management

      Main achievements

         Program, project,
                                                     Challenges                       Company                  Achievements in 2020                     Compliance
         initiative or action

                                Implement pilot project of power generation in                  Due to the health emergency due to COVID-19,
                                EPM’s aqueduct network through technological                    this project was suspended in April 2020 with a        Not
       Distributed resources
                                developments (PAT systems - pumps such as                       scheduled restart in February 2021. For this reason,   accomplished
                                turbines).                                                      the connection to the network was not achieved.

                                                                                                The business model to implement this service (supply
                                Carry out studies to determine the viability of the
                                                                                                of high VOLUMES of water to fill tank cars) was
       Distributed resources    water sales business in service stations (supply of                                                                  Total
                                                                                                proposed and results were delivered to the Water
                                high VOLUMES of water to fill tank cars).
                                                                                                business.
                                                                                                                                                                                        8
                                                                                                The design stage was concluded, the budget was
                                Initiate the remodeling of the industrial workshop
                                                                                      EPM       approved and the construction phase began,
       Technological            and application of thermal barrier coatings
                                                                                                preparing pre-contractual documents for civil works    Total
       development              for power generating equipment using locally
                                                                                                and the procedures for obtaining the construction
                                developed materials.
                                                                                                license. The work will finish in 2022.

                                                                                                The feasibility study was executed, whose
                                                                                                deliverables were: benchmarking and market study;
                                Carry out studies and a pilot to determine the                  regulation and macro environment; analysis of
       Distributed resources    feasibility of offering comprehensive management                attractiveness and competitiveness, and scenarios      Total
                                services for dielectric oils.                                   and recommendations for business models.
                                                                                                As a pilot for hypothesis testing, a commercial test
                                                                                                was carried out with some potential clients.

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02
Sustainable
management

         Program, project,
                                                    Challenges                        Company                  Achievements in 2020                        Compliance
         initiative or action

       Smart city services
                                Encourage the conversion of 3,500 vehicles to                   2,537 conversions were carried out, for a total of
       and sustainable                                                                                                                                    Partial
                                Natural Gas Vehicles.                                           24,000 vehicles with installed and active NGV.
       mobility

                                Manage the investments of the Private Capital Fund
       Highly innovative                                                                        FCP II operations began in the second half. The
                                                                                                                                                                                          9
                                - FCP I and II (EPM Ventures Program) and work                                                                            Total
       company                                                                                  monitoring of FCP I investments continued.
                                jointly with the companies in which it has a stake.
                                                                                      EPM
                                                                                                It was not possible to carry out the Solar Circuit. A
                                                                                                special training process of 52 hours of mentoring
                                To develop and execute, in conjunction with the EPM
                                                                                                and spaces for prototyping of
       Highly innovative        Foundation, the “Technological Challenges” and
                                                                                                business ideas with external people and                   Partial
       company                  “Innóvate EPM” programs to develop innovation
                                                                                                intrapreneurs, until reaching the selection of the best
                                capacities in new generations.
                                                                                                six ventures that CONTINUE with a new phase of
                                                                                                acceleration in 2021.

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02
Sustainable
management

       Challenges 2021
                                                                                       Scope and coverage

          Program,
           project,                                               Year of
                                     Challenge                               Company        Business      Geography         Management progress in 2020
         initiative or                                          compliance
            action
                         Define the business model for                                                    Colombia –
                                                                   2021                  Water                         Its implementation has not started.
                         smart aqueducts                                                                  Antioquia
                                                                                                                       This pilot began in October 2020, with the
                                                                                                                       participation of ERCO and the Universidad
       Distributed       Run community solar energy
                                                                                                                       Escuela de Ingeniería de Antioquia and
       resources         pilot, based on distributed energy
                                                                                                          Colombia –   with the support of University College
                         resources, smart metering                 2021                  Electric power
                                                                                                          Antioquia    London. The first deliverable has already
                         and digital platform for energy
                         transactions
                                                                                                                       been received and it is expected to
                                                                                                                       advance during the year 2021 with the                                 10
                                                                                                                       other defined deliverables.
                                                                             EPM
                                                                                                                       Qualitative research was carried out
                                                                                                                       that allowed exploring the concept of
                                                                                                                       smart cities in: citizens, authorities, EPM,
                                                                                                                       and companies in Medellín and other
       Smart city        Implement the provision of smart
                                                                                                                       municipalities of the metropolitan area.
       services and      city services as a strategic ally of                                             Colombia –
                                                                  2022                   All businesses                The contractual process was started for the
       sustainable       Medellín and other territories in                                                Antioquia
                                                                                                                       consulting phase, the purpose of which
       mobility          Colombia
                                                                                                                       is to develop capacities in EPM, to be the
                                                                                                                       strategic ally of the cities in the definition of
                                                                                                                       the city strategy, design of Smart services
                                                                                                                       and support in the implementation.

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02
Sustainable
management

                                                                                       Scope and coverage

           Program,
            project,                                              Year of
                                      Challenge                              Company       Business      Geography        Management progress in 2020
          initiative or                                         compliance
             action

        Smart city                                                                                                    Conversations were activated with some

                                                                                                                                                                                      11
        services and      Propose the EAS (energy as a                                                   Colombia –   companies that offer electric buses to
                                                                   2021                 Electric power
        sustainable       service) service in electric buses.                                            Antioquia    start with the signing of confidentiality
        mobility                                                                                                      agreements.
                                                                             EPM                                      The collaboration agreement and
                          Start the execution of activities
        Highly                                                                                                        contributions were signed with Ruta N,
                          and projects at the Center for                                                 Colombia –
        innovative                                                 2021                 All businesses                who will be EPM’s ally for the operation of
                          Innovation, Entrepreneurship and                                               Antioquia
        company                                                                                                       the Center for Innovation, Entrepreneurship
                          Digital Transformation
                                                                                                                      and Digital Transformation.

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02
Sustainable
management

                                             Associated stakeholders

               •    Clients and users         •       Community          •   Owner

               •    State                     •       EPM Group People   •   Suppliers and contractors

               •    Partners                  •       Investors

                                                                                                                           12

                             GRI standards Contents and own indicators
              EPM - 11      Innovation efficiencies
              EPM - 19      New lines of business in innovation

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02
Sustainable
management

                                                    Scope and coverage

              Companies                                              Geography
                                                                     Colombia – Antioquia
              Empresas Públicas de Medellín - EPM
                                                                     Colombia - Malambo, Atlántico
              Central Hidroeléctrica de Caldas - CHEC                Colombia – Caldas
                                                                     Colombia – Quindío
              Empresa de Energía del Quindío - EDEQ
                                                                     Colombia – Santander
              Electrificadora de Santander - ESSA                    Colombia - Norte de Santander
                                                                     El Salvador
              Centrales Eléctricas del Norte de Santander - CENS
                                                                     Guatemala
              Aguas Regionales EPM                                   Panamá

              Aguas de Malambo
                                                                     Business
                                                                                                                       13
              Distribuidora de Electricidad del Sur - Delsur         Water
                                                                     Sanitation
              Empresa Eléctrica de Guatemala - Eegsa
                                                                     Electric power
              Elektra Noreste - ENSA                                 Gas

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Highly
innovative
 company

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02
Sustainable
management

          Highly innovative company
          In its day to day, the Organization seeks to foster the capacity for innovation in its employees
          and promote digital transformation in each of the companies, from the motivation, knowledge
          and creativity of the people, who are the ones who finally develop these new solutions that
          deliver value to stakeholders.

          Some mechanisms and actions to promote innovation, entrepreneurship and digital
          transformation are:

          •   Management of the business accelerator and the Private Capital Innovation Fund.
          •   Training events in innovation and agile methodologies.
          •   Launch of challenges in the innovation ecosystem.
          •   Seed and project management with application of agile methodologies and agile digital
              operating model (MOAD).

          Performance in 2020

                                                                                                                               15
                 The recognition of the EPM innovation team as an R + D + I Unit was once
                 again obtained by the Ministry of Science, in Colombia, According To the Policy
                 of Actors of the National System of Science, Technology and Innovation. In
                 addition, the Innóvate EPM 2020 program was implemented, aimed at external
                 entrepreneurs (university students). In this version, which had the participation
                 of EPM officials, the training, prioritization and selection phases of the six best
                 projects were developed, which will be part of a later phase for acceleration.

          The Grupo EPM promotes an open and collaborative innovation strategy that allows its
          companies to develop alliances with technological parks, centers and universities, in addition
          to carrying out R & D & I projects that seek profitability and the development of new business
          alternatives. Through Ventures EPM, a program that materializes investment in ventures, the
          business accelerator and Private Equity Funds, strategic and financial support is provided
          to companies related to EPM’s sectors of interest for the development of new products or
          necessary services. in the group. Capital Fund I continued with the portfolio management
          and the constitution of Capital Fund II was managed, as well as its approval before the
          Financial Superintendence and the beginning of its operations.

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02
Sustainable
management

          The digital transformation in EPM continues to grow with more seeds (teams focused on
          solving business challenges), which have generated minimum viable products (MPV)
          and transversal digital components. An agile and digital operating model (MOAD) was
          implemented, which includes teams called Virtual Centers of Excellence, who will mark the
          evolutionary path of different disciplines for the future: intelligent process automation, agile
          and innovation practices, customer experience and data science.

          The CHEC subsidiary consolidated its innovation management system and executed the
          CHEC 3D strategy, by identifying core capabilities, training in design thinking, scrum master
          and the creation of the innovation committee and studies associated with this culture.

          Innóvate CHEC was expanded and the program was extended to the department of
          Risaralda. Several designs and some prototypes were developed: a web application to
          manage payments for consumption made in the electric stations and the application of
          nanotechnology principles for the decomposition of organic pollutants in CHEC’s water
          bodies. In addition, with the event called “The great CHEC challenge”, prioritized initiatives
          were started until four challenges were presented in the summons. A preliminary mapping
          of possible partners for a solution was also carried out and the communication strategy
          and launch of the program were defined in March 2021.

          CHEC and ESSA obtained the approval by Minciencias of several projects presented in the                                                  16
          summons for tax benefits.

          CENS worked on the development of organizational capacities with innovation as a means
          to implement and advance new solutions.

                          Investments and expenses - Highly Innovative Company Action (million COP)

                         Concept / Indicator                       2018                   2019                 2020
              EPM Headquarters                                            15,416                 7,259               19,220
              Subsidiaries Grupo EPM                                      3,677                   255                 2,563
              Total investments                                         19,093                   7,514               21,783
              Source: New Business, Innovation and Technology Vice Presidency / Development and Innovation
              Management

          The values include the investments and expenses of EPM and its subsidiaries executed in previous years, which had
          been considered in the actions previously called “Transformational Innovation” and “Entrepreneurship”, since many
          of these pilots and projects have to do with the new action. detailed here, the most significant items correspond to
          investments made in the Private Equity Fund for Entrepreneurship.

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02
Sustainable
management

                                GRI standards Contents and own indicators
                    EPM - 11 Innovation efficiencies
                   EPM - 19 New lines of business in innovation

                                                    Scope and coverage

              Companies                                              Businesses
              Empresas Públicas de Medellín - EPM                    Water

              Central Hidroeléctrica de Caldas - CHEC                Sanitation                         17
              Electrificadora de Santander - ESSA                    Electric power

              Centrales Eléctricas del Norte de Santander - CENS     Gas

              Geography
              Colombia – Antioquia
              Colombia – Caldas
              Colombia – Santander
              Colombia – Norte de Santander

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Distributed
resources

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02
Sustainable
management

          Distributed resources
          EPM seeks to offer solutions for places and territories difficult to reach with large centralized
          systems designed for cities. This focus requires the integration of technology and business
          models in small-scale solutions that allow cost efficiency in the provision of PUBLIC drinking
          water, sanitation, energy and solid waste management services.

          For the Water and Sanitation business, they are solutions for the provision of drinking
          water and sanitation in a sustainable, clean and adaptable way to populations, sectors or
          communities that are not connected in any way with the main networks.

          For the Energy business, they are small and modular energy generation and storage
          technologies that provide electrical capacity, energy and flexibility when needed.

          For the Solid Waste Management business, they are solutions that involve the construction,
          operation and maintenance of systems that respond to the needs of small populations.

          Performance in 2020
                                                                                                                                19
                With the pilot carried out in the rural area of the municipality of Olaya, EPM
                advanced in the knowledge about the installation of efficient aqueduct
                solutions in areas of difficult access for new users, using remote measurement
                technologies for remote management of these systems. This pilot could be
                replicated in many regions where Grupo EPM has a presence.

                The Energy business, for its part, strengthened its foray into solar self-generation,
                in which it invested COP 2,068 million in four solar systems for large clients,
                with a total installed capacity of 859 kWp and carried out the operation and
                maintenance of two solar systems.

          An ultrafiltration plant was installed to integrate it into the telemetry and remote-control
          network that is part of the smart aqueduct project in the town of Sucre, municipality of Olaya-
          Antioquia.

          The scope and design of a pilot plan for the initiative to flatten the demand curve for drinking
          water was advanced. The best technology was identified and components were developed
          to transmit the information to an analytics center for processing and control.

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02
Sustainable
management

          A market investigation was carried out with the company Ernst & Young, as an input for the
          structuring of the business model for the sale of water in service stations.

          The floating solar panel project in the Guatapé reservoir was completed and the photovoltaic
          solar system was delivered to the operating areas of the Guatapé plant.

          On the subject of transactive energy, in an agreement with the Universidad Escuela de
          Ingeniería de Antioquia and the ERCO company, progress was made in the execution
          of two pilots: one with the community of Comuna 13 of Medellín in order to analyze the
          transactional characteristics of this population segment, and another in which the data of the
          energy transactions of 14 participating users were collected.

          A proposal was delivered for the structuring of the dielectric oil renewal business -RAD-, to
          offer renewed oil and services associated with the management and treatment of these oils
          to third parties.

          Aguas Regionales installed two hypochlorite generation systems on site, one in the
          municipality of Apartadó and the other in Chigorodó.

          CHEC designed the technology evaluation prototype for swimming pool water heating.
                                                                                                                                               20
          ESSA completed the third year of monitoring the performance of the El Parnaso solar self-
          generation system, and recorded a generation of 145 kWh-day.

          CENS structured the energy efficiency proposal to start in 2021.

          ENSA installed a recycled water reserve tank in the Cerro Viento offices, which can wash 25
          to 30 vehicles, representing a saving of 500 liters of drinking water.

                             Investment and expenses in distributed resources (million COP)
                        Concept / Indicator                      2018                 2019                  2020
              EPM Headquarters                                          7,091                 3,611                3,631
              Subsidiaries Grupo EPM                                    11,527                  73                 2,340
              Total investments                                        18,618                3,684                 5,971
              Source: New Business, Innovation and Technology Vice Presidency / Development and Innovation
              Management

          The values include the investments and expenses of EPM and the subsidiaries, executed in previous years, which
          had been considered in the action previously called “Technological developments”, since many of these pilots and
          projects have to do with the new action detailed here.

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02
Sustainable
management

                                GRI standards Contents and own indicators
                    EPM - 11 Innovation efficiencies
                   EPM - 19 New lines of business in innovation

                                                    Scope and coverage

              Companies                                              Geography
              Empresas Públicas de Medellín - EPM
                                                                     Colombia – Antioquia                              21
                                                                     Colombia – Caldas
              Aguas Regionales EPM                                   Colombia - Norte de Santander
                                                                     Colombia – Santander
              Centrales Eléctricas del Norte de Santander - CENS
                                                                     Panamá
              Central Hidroeléctrica de Caldas - CHEC

              Electrificadora de Santander - ESSA                    Businesses
                                                                     Water
              Elektra Noreste - ENSA                                 Electric power

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Smart city
services and
sustainable
  mobility

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02
Sustainable
management

          Smart city services and sustainable mobility
          Smart city is a concept and a way of organizing a territory making use of technology and
          other elements, to satisfy the needs and offer relevant services to citizens, businesses and
          visitors, which facilitates governance, increases transparency, strengthens democracy and
          citizen participation and builds a more equitable, inclusive and competitive city.

          In this sense, the Grupo EPM has projects to improve the intelligence of the services it provides,
          in smart electrical grids, in analytics to detect losses and fraud in energy, gas and water,
          as well as in automation and remote management of PUBLIC LIGHTING. It also develops
          sustainable mobility initiatives that aim at the harmony of life for a better world, fitting in with
          the sustainable mobility strategy of providing energy “for transport” from clean or renewable
          sources and natural gas.

          Performance in 2020

                In most of its energy subsidiaries in Colombia and abroad, the Grupo EPM has
                fostered the ecosystem of sustainable mobility in its territories with the acquisition
                                                                                                                                   23
                of electric vehicles and the installation of infrastructure consisting of PUBLIC and
                private electric chargers. Regarding smart city services, the subsidiary Eegsa
                made progress in the Red AMI project, in which it invested 10,333,881 quetzals
                equivalent to COP 4,551 million in its operation and maintenance.

          EPM carried out a market investigation to modernize PUBLIC lighting, which includes the
          change from sodium and conventional luminaires to more efficient LED luminaires and the
          foray into pilot projects for remote management systems for PUBLIC LIGHTING. These results
          will serve as input for a consulting phase in smart cities.

          In electric mobility, the offer to finance bicycles and electric scooters for Somos cardholders
          continued (EPM’s loyalty program aimed at customers and users). Conversations were
          started with foreign suppliers of electric buses to sign confidentiality agreements and explore
          alternatives for renting batteries or associated models to promote the use of these vehicles.

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02
Sustainable
management

          CHEC closed the year with the launch of the first electric charging eco-station, the installation
          of the second charging station and the presentation to the Manizales city hall of the proposal
          for a sustainable mobility public policy.

          EDEQ installed the first fast charging station in the department of Quindío and began steps
          to deploy the charging infrastructure for two wheels. Additionally, it continued to promote the
          purchase of motorcycles and electric bicycles through the Somos card.

          Eegsa made the purchase of an electric vehicle and continued with the initiatives of:
          automation of the electricity grid, installation of recharging points, Asociación de Movilidad
          Eléctrica de Guatemala -Amegua-, negotiation and pilot tests of LED luminaires and carried
          out the designs of the financing platform called “Consíguelo”.

          Delsur worked on the installation of thermal imaging cameras, battery bank monitors
          and isolating protectors in the network sections in the substations, in order to carry out
          monitoring, data analysis and reduction of faults. Also, in the implementation of the cable
          and phase identification system in distribution networks that provide more precise data in
          the geographic information system, reducing technical losses.

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                                Investment and expenses in smart city services (million COP)

                   Concept / Indicator              2018                    2019                    2020
                 EPM Headquarters                               0                        0                     173
                 Subsidiaries Grupo EPM                     8,774                  33,120                   5,745
                 Total investments                          8,774                  33,120                    5,917
                 Source: New Business, Innovation and Technology Vice Presidency / Development and
                 Innovation Management

                The values include the investments and expenses of EPM and the subsidiaries, executed in previous
                years, which had been considered in the action previously called “Technological developments”, since
                many of these pilots and projects have to do with the new action detailed here, the most significant
                items correspond to investments made by the subsidiary Eegsa on smart metering -AMI- and with the
                Integrated Computer System for User Service -SIIAU- Eegsa,

                Investments and expenses for sustainable mobility are detailed in the Mitigation of climate change
                action.

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02
Sustainable
management

                                 GRI standards Contents and own indicators
                    EPM - 11 Innovation efficiencies
                   EPM - 19 New lines of business in innovation

                                                   Scope and coverage

              Companies                                             Geography
              Empresas Públicas de Medellín - EPM
                                                                    Colombia – Antioquia
                                                                    Colombia – Caldas                                 25
              Centrales Eléctricas del Norte de Santander - CENS    Colombia - Norte de Santander
                                                                    Colombia – Quindío
              Central Hidroeléctrica de Caldas - CHEC
                                                                    El Salvador
              Empresa de Energía del Quindío - EDEQ                 Guatemala

              Empresa Eléctrica de Guatemala - Eegsa
                                                                    Businesses
              Distribuidora de Electricidad del Sur - Delsur        Electric power

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Business
 platforms
and services
of the future

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02
Sustainable
management

          Business platforms and services of the future
          A business and services platform is a business model that creates value by facilitating
          exchanges between two or more interdependent groups, generally consumers and
          producers. For these exchanges to happen, platforms leverage and create large, scalable
          networks of users and resources that can be accessed.

          The Grupo EPM seeks to redesign business to commerce (B2C), business to business
          (B2B) and business to government (B2G) services, including point-to-point (P2P) services
          for regulated and unregulated markets, as well as to develop new service offers through
          virtual platforms, with an objective of growing through innovation. With this guideline, EPM
          has made progress in structuring possible new businesses or in optimizing current ones,
          achieving efficiencies that also translate into lower costs for the company and consequently
          in a more efficient and innovative company for its users.

          Performance in 2020

                                                                                                                            27
                 Both EPM and the subsidiaries CHEC, CENS, Delsur and Eegsa made significant
                 progress implementing applications based on technologies such as IoT,
                 Artificial Intelligence, Blockchain and Cloud and enabled new digital assistants
                 that provide remote access to our clients, guaranteeing security, agility
                 and improvement in the attention. Likewise, in EPM several platforms were
                 implemented to support some regulations and for the management, use and
                 exploitation of information.

          EPM reviewed and adjusted the business plan to offer B2C-B2B services, incorporating
          lessons learned from iterations carried out with clients. At the same time, CENS designed a
          similar service that is awaiting approval by the Board of Directors.

          EPM made progress in the Prosumidores platform, in the development of web applications
          that allow to unify the customer experience, in the platform for robotization of manual tasks
          of current processes, put into operation the first IPA solution (Robotic Process Automation
          + Artificial Intelligence) with the invoice quality process - histograms, the platform and
          data quality tools were enabled for monitoring, for the monitoring of IT applications and
          components (information technologies) and establishment of the Data Science Community.

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02
Sustainable
management

          The company implemented EMA chatbot for employees and clients in the process of
          integrating with WhatsApp. Likewise, the Delsur subsidiary advanced with a chatbot pilot that
          it hopes to massify during 2021. For its part, Eegsa implemented the bot called Sunny with
          artificial intelligence and machine learning that integrates with messaging channels and
          with other tools such as the CRM-EPESI system and Comegsa APP and with digital services to
          facilitate communication with customers, including the package of technical services called
          MantPlus offered by Comegsa.

          CHEC inaugurated the Vive CHEC experience center, a modern and innovative relationship
          point, where clients find commercial, experiential and co-creation spaces. A concept
          that combines digital and experiential moments in an experience that generates positive
          emotions, for remembrance and recommendation. It also made progress in optimizing the
          administration, operation and maintenance of electrical installations by implementing high-
          tech equipment that monitors different variables through energy management software.

          Delsur made progress in the VAcBI Plan (active sales with business intelligence) that promotes
          the acquisition of complementary services through the analysis of personalized information
          to generate tailored value offers, through contracts with staggered coverage and with
          payment flexibilities in the invoice (initially aimed at high demand customers).

          Eegsa for its part made progress with the C4C (Cloud for customer) platform that integrates                                     28
          with Outlook and creates an automatic ticket for customer service; tools were implemented
          for the SIIAU system (Integrated User Service Computer System), progress was made in
          generating online electronic invoices, as well as payment and credit agreements.

                         Investments in business platforms and services of the future (million COP)

                              Concept / Indicator                        2018            2019            2020
                Investments and expenses made by EPM                             0               0            5,416
                Investments and expenses made by national
                                                                             1,552              148         10,847
                and international subsidiaries
                Total investments                                            1,552              148         16,263
                Source: New Business, Innovation and Technology Vice Presidency / Development and
                Innovation Management

               The values in the table include the investments and expenses of the subsidiaries, executed in previous
               years, in the action called “Technological developments”, since many of these pilots and projects have
               to do with the new action detailed here.

               The significant increase in investments in 2020 in the subsidiaries corresponds mainly to the
               implementation of scada and materials management at Eegsa.

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02
Sustainable
management

                                 GRI standards Contents and own indicators
                    EPM - 11 Innovation efficiencies
                   EPM - 19 New lines of business in innovation

                                                    Scope and coverage

              Companies                                              Colombia – Caldas
                                                                     Colombia – Santander
              Empresas Públicas de Medellín - EPM
                                                                     Colombia - Norte de Santander                     29
              Central Hidroeléctrica de Caldas - CHEC
                                                                     El Salvador
              Electrificadora de Santander - ESSA                    Guatemala
              Centrales Eléctricas del Norte de Santander - CENS

              Distribuidora de Electricidad del Sur - Delsur         Businesses
                                                                     Water
              Empresa Eléctrica de Guatemala - Eegsa
                                                                     Sanitation
              Geography                                              Electric power
              Colombia – Antioquia                                   Gas

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