Mónica Contreras Esper

TGI has achieved carbon neutrality certification and continues to work on its commitment to sustainability through its ESG strategy, which includes reducing emissions and working on gender equity, human rights, and economic development.

TGI recently achieved carbon neutrality certification and was included on the S&P Global Corporate Sustainability Assessment. What do these achievements mean for TGI?

Two years ago, we embarked on a transformation journey to make sustainability a critical capability for our business. This transformation is not just about performance, but also simultaneously performing and transforming the business. To achieve this, we defined four key pillars and two capability processes. Efficiency is the first pillar, and we aim to create a more agile organization with different processes to succeed in the market. The second pillar is regulatory, as 50% of our income depends on regulations. We are defining a new methodology for transportation in Colombia to ensure our income is not affected. Innovation and expansion are the other two pillars; however, I want to highlight the other two capabilities of the business—cultural transformation and sustainability—which are transversal to the entire company and give meaning to what we are and do. Our sustainability strategy Energia para Prosperar seeks to not only to respond to our commitment of reduce greenhouse gas emissions in the country and enable the energy transition with natural gas, but also close gaps in gender equity, human rights, and economic development, working from the social and its governance model. In the environment criteria, we created the TGI Decarbonization Roadmap with the commitment to reduce 51% emissions by 2030 and being carbon neutral by 2050. The goal is not only to decarbonize our own operation, but also provide cleaner energy so that other economic sectors such as industries and transportation can be decarbonized, since both have a great weight in the generation of emissions of our country. In a nutshell; in operational efficiency we work toward a more efficient operation, using less gas to operate, or the commitment to detecting, reporting, and mitigating fugitive emissions in the 100% of our infrastructure, in innovation we are developing new alternatives such as biogas, biomethane, and hydrogen, and lastly, in nature-based solutions we work on biodiversity and strategic ecosystem interventions. As a result of this effort, in 2022 we reduced 20.5% of our emissions, compared to 2021.

Are there any ambitions to expand the business internationally?

We are committed to exploring more sustainable energy options and recognize that a different business model is required to make this a reality. To gain traction in this area, we are exploring joint ventures with European companies specializing in green energy. We are actively working with our partners to create a new business model that will help us grow in this journey. Currently, our market presence, besides Colombia, is limited to Peru, which comes with social and political challenges. Therefore, expanding into the Andean region is crucial for us. In Colombia, we see many opportunities, but we need to address the gap in the local market before moving on to other countries. Specifically, we need to focus on gaining penetration and improving infrastructure to close this gap.

Colombia’s favorable regulatory framework encourages new businesses that sponsor new energies to thrive. Has this had an impact on your operations?

The government plays a critical role in the transition to new energy sources, and collaboration is essential to create a social impact. It is necessary to create a new regulatory framework for the Colombian market, and this has been part of ongoing discussions with both the previous and current governments. The growth of gas has also been a focus, and efforts have been made to develop a roadmap for hydrogen with the government’s help. A sustainable business model is required to make this a reality, and regulations are critical for attracting long-term investments. The government’s role is essential not only for private-sector investment, but also to make investments sustainable from the beginning, leading to real demand for more sustainable companies. A proactive and supportive regulatory approach is crucial to achieving a successful transition to sustainable energy.