ADVANCING GENDER IN THE ENVIRONMENT
ADVANCING GENDER IN THE ENVIRONMENT:GENDER-RESPONSIVE GEOTHERMAL GENERATION LAGEOPowering energy and social benefits in El Salvador
USAID Grant Number:AID-EGEE-IO-13-00004This document was produced by IUCN for USAID’s Office of Gender Equality and Women’sEmpowerment within the Bureau of Economic Growth, Education and Environment in Washington,D.C.February 2019Alaide Gonzáles, Jackie Siles, Ana Rojas, Jamie Wen, and Maria Prebble authored this case study. Theauthors would like to thank Cate Owren and Corinne Hart for their comments and contributions tothis case study. The authors’ views expressed in this publication do not necessarily reflect the viewsof the United States Agency for International Development or the United States Government.Acknowledgments: Special thanks go to Rossy Escobar, Rubén Loy, Ana Silvia de Arévalo, BlancaLuz de González, Mónica Ricardez, Doris Elena Miranda, Carlos Melgar, FundaGeo’s employees andstaff from the Wildlife Refuge for sharing information and experiences.2 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
ABOUT THIS CASE STUDYThis case study highlights the various ways in which LaGeo—a geothermal energy utility in ElSalvador—developed strategies throughout its corporate mission and operations to adhere tonational laws on gender equality and national development goals, resulting in environmental, social,and women’s empowerment outcomes, as well as positive impacts on business outcomes.This case study shows how utilities can increase gender equality and promote women’sempowerment through institutional policies, examining management structures, and utilizingcorporate social responsibility (CSR). It also highlights how LaGeo used CSR initiatives acrossnumerous impact areas, such as livelihood activities, reforestation and mitigation efforts, socialinfrastructure development, conservation work, education, and health initiatives to demonstratethe benefits of geothermal energy in delivering environmental sustainability and employment. In turn,these efforts build strong community relations to help mitigate and prevent vandalism. The caseprovides recommendations and selected resources for further reading that other companies, acrosssectors, might consider.This Energy Case Study is produced by Advancing Gender in the Environment (AGENT), showcasingadvancements towards the achievement of gender equality in the energy sector. It was developedwith the guidance and support of the Gender and Renewable Energy (G-REEN) network of expertshosted by AGENT.ABOUT AGENTAGENT is a ten-year program launched by the United States Agency for International Development(USAID) in 2014 and implemented by the International Union for Conservation of Nature(IUCN). The purpose of the partnership is to increase the effectiveness of USAID’s environmentprogramming through the robust integration of gender considerations, improving gender equality andwomen’s empowerment outcomes in a broad range of environmental sectors. Recognizing womenas agents of change, and the value of diverse knowledge, experiences and capacities of women andmen alike, AGENT envisions a world that approaches environmental work at all levels with genderresponsive policy and action. AGENT drives transformation toward a more sustainable and equitablefuture for all.USAID.GOVADVANCING GENDER IN THE ENVIRONMENT 3
INTRODUCTIONAround the world, 64 of 72 (89%) countries where USAID operates has at least one utility-scaleenergy service that is provided via full or partial national ownership. In many of these contexts, thereare opportunities to implement national commitments on gender equality, women’s empowerment,and community development through the corporate strategies of utility-scale energy services. Whenpolicy and programming relating to utility-scale energy services promote gender equality and women’sempowerment, multiplied results follow—particularly for environmental and community benefits.In El Salvador, several national laws and policies promote gender equality in the workplace. In 2011,the Law of Equality, Fairness and the Elimination of Discrimination Against Women took effect, mandatingequal pay for equal work between women and men. El Salvador has also legalized twelve weeks of paidmaternity leave and grants nursing mothers daily one-hour breaks.As one of the world’s top ten geothermal energy producers, El Salvador has national plans toincrease installed capacity for its geothermal plants by 33% by 2020, with the Geothermal EnergyAssociation predicting a global increase of 14.5-17.6% in geothermal installed capacity. Currently,LaGeo is an El Salvadorian geothermal energy utility that provides 27% of the country’s electricpower production. Until 2015, it was run as a joint venture between Enel Green Power and stateowned outfit Inversiones Energeticas S.A. de C.V. It is now run by Grupo CEL and under full control4 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
LAGEOof the El Salvadorian government.1 LaGeo therefore offers opportunities to advance gender equalityby empowering women in its workforce and by working inclusively with local women in its deliveryof CSR activities that generate environmental and economic outcomes.When LaGeo was formed in 1999 as a part of El Salvador’s modernization process. Its formationincluded a mandate to contribute to the socio-economic development of the country through reliableand affordable energy while working comprehensively to improve the quality of life for its shareholders,customers, workers, and neighboring communities. In applying these national standards to its businessphilosophy, LaGeo enforces a code of ethics, an occupational health and safety program, an antiharassment and discrimination policy, a collective contract, and a gender policy to ensure compliance.THE RESULTS ARE TRANSFORMATIVENot only has LaGeo increased women’s participation in the geothermal sector, it has also used CSRinitiatives to generate business outcomes—such as preventing vandalism due to positive communityrelations and using its community education projects to create local talent pools for recruiting humanresources (HR) professionals.1 Grupo CEL is made up of four companies in the Salvadoran electricity sector: LaGeo, S.A. de CV (LaGeo), Inversiones Energéticas,S.A. de C.V. (INE), Electricity Transmitting Company of El Salvador, S.A. de C.V. (ETESAL), Cucumacayán Electric Company, S.A. deC.V. (CECSA).USAID.GOVADVANCING GENDER IN THE ENVIRONMENT 5
ABOUT LAGEOLaGeo’s headquarters arelocated in Santa Tecla, adjacentto the capital city of SanSalvador. Its two geothermalplants of Ahuchapán andBerlín are located in thedepartments of Santa Anaand Usulután, respectively.The Chinameca geothermalfield, where explorationsand evaluations are currentlybeing carried out, is located inthe department of Usulután.This map shows the locationof these plants and thegeothermal field, as well asthe number of people directlybenefited by activities.204MWTOTAL INSTALLEDCAPACITYAREA OF INFLUENCE OF THEAHUACHAPÁN GEOTHERMALFIELDTotal population: 90,533Direct beneficiaries: 13,487Communities benefited: 226 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
50050NEIGHBORING COMMUNITIES10027%OF EL SALVADOR’SELECTRIC POWER75,374BENEFICIARIESAREA OF INFLUENCE OF THEAREA OF INFLUENCE OF THECHINAMECA GEOTHERMAL FIELDTotal population: 21,275Direct beneficiaries: 3,545Communities benefited: 5GEOTHERMAL FIELD BERLINTotal population: 45,570Direct beneficiaries: 12,561Communities benefited: 24USAID.GOVADVANCING GENDER IN THE ENVIRONMENT 7
THE GOALReduce gender inequality and promote women’s economic empowerment in theenergy sector.CHALLENGESAVERAGE PARTICIPATION OF WOMEN AND MEN INDISPARITIES IN RURAL AREAS ARE WIDEREL SALVADOR’S LABOR MARKET10079%7547.6%502508 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
SUCCESSFUL STRATEGIESAlthough gender equality has been promoted for many years at LaGeo, the formation of the GrupoCEL in 2015 and an increased focus on the integration of national gender equality mandates ledto greater gender and empowerment results. In 2016, LaGeo conducted an institutional genderassessment to determine the degree to which gender equality is addressed in its corporate policiesand activities. The assessment also identified progress made in past years and where furtherimprovements are needed.The following strategies demonstrate some of the various ways LaGeo invested in advancing genderequality, which LaGeo is formalizing through an upcoming gender policy: In 2016, the Grupo CEL, working with the Ministry of Labor and Social Welfare, launched theEduca Mujer program to create an institutional platform that promotes the improvement ofwomen’s technical skills through a scholarship exchange for technical studies—including at thepost-graduate and masters level—and English language courses. The target of these scholarshipswere all working women at Grupo CEL, regardless of their academic level.Gender equitable company policies that adhere to national laws were implemented, including:»» Women are paid according to the position they occupy, at equal pay to men;»» Gender sensitization trainings are regularly conducted,»» Women and men have access to labor benefits, such as legally mandated maternity andbreastfeeding conditions; and»» A nursery was opened to benefit women and men alike. LaGeo hires more than 50 women from local communities as general helpers for the annualmaintenance of the geothermal plants.Seasonal workers receive training in industrial safety and instructions on maintenance activitiessuch as the lubrication and cleaning of mechanical parts and components of the generation plants.LaGeo has supported its female personnel in starting a local chapter of the Women inGeothermal initiative (WING) that seeks to increase the participation of women in thegeothermal industry.USAID.GOVADVANCING GENDER IN THE ENVIRONMENT 9
RESULTSBY INTEGRATING GENDER-RESPONSIVEAPPROACHES AND ACTIVITIES, IN FOUR YEARS,LAGEO HAS INCREASED WOMEN’S PARTICIPATIONAT ITS PLANTS AND OFFICES BY 5%100755019%24%2550 WOMEN020182014are hired and trained from local communities each yearto conduct annual maintenance workPERMANENT STAFF AT LAGEO:025507510030%WOMEN IN OPERATIONAL, TECHNICAL, ADMINISTRATIVE,AND GENERAL MANAGEMENT ROLES10 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
PERMANENT STAFF AT GRUPO CEL:025507510045%WOMEN IN OPERATIONAL, TECHNICAL,ADMINISTRATIVE, AND GENERAL MANAGEMENTROLESTEMPORARY WORKFORCE:025507510032%OF SEASONAL TEMPORARY WORKFORCEARE WOMENWOMEN IN PERMANENT STAFF POSITIONS AT LAGEO:2%EXECUTIVE 19%TECHNICAL50%ADMINISTRATIVEUSAID.GOVADVANCING GENDER IN THE ENVIRONMENT 11
THE GOALUse Corporate Social Responsibility (CSR) initiatives to increase employmentopportunities in local communities, particularly for women, while demonstratingthe benefits of geothermal energy to strengthen community relations andprevent vandalism.CHALLENGESGLOBALLY, MANY LARGE-SCALE ENERGY UTILITIES EXPERIENCE SERVICE DELAYS AND VANDALISM DUE TOPOOR COMMUNITY RELATIONS.10%Twenty of 26 countries (77%) in the LatinAmerican and Caribbean region reportlosses of more than 10% of the totalelectricity generated, resulting in annuallosses of US 11 to 17 billion. More than80% of this loss is due to vandalism,theft, fraud by the final consumer, andinefficient commercial policies. 27.9%In Zimbabwe, state-owned ZESA hasreported US 15 million in lossesbetween 2014 and 2015 due to vandalism,which contributes to electrificationcrises. 3 Across sub-Saharan Africa, 7.9%of annual sales of affected firms werelost in 2017 due to theft and vandalism,constituting millions in losses. 48.7%8.1%Solar panels at a 100 MW solarplant in India were vandalized dueto non-payment of wages, impactinggovernment goals of 100 GW solarconnections. In South Asia, 8.1% ofannual sales of affected firms were lostin 2017 due to theft and vandalism. 5In the Middle East and North Africa,World Bank data indicates that 8.7% ofannual sales of affected firms were lost in2017 due to theft and vandalism alone. 62 Serebrisky, T. and Jimenez, R. (2015). ‘Antes de correr aprende a caminar: reducir las pérdidas de electricidad comoprimer paso para garantizar la seguridad energética’. Cambio Climatico. Inter-American Development Bank. Available here.3 Kaseke, N. et al. (2013). “Emergence Of Electricity Crisis In Zimbabwe, Reform Response And Cost Implications.”Journal of Business Management & Social Sciences Research. Vol. 2, No. 10. Available here.4 World Bank. (2018). ‘Firms experiencing losses due to theft and vandalism (% of firms)’. World Bank, EnterpriseSurveys. Available here.5 Climate Samurai. (2018). ‘Watch: Solar panels at 100 Mw solar plant in Maharashtra vandalized due to non payment ofwages’. Available here.6 World Bank. (2018). ‘Firms experiencing losses due to theft and vandalism (% of firms)’. World Bank, EnterpriseSurveys. Available here.12 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
IN EL SALVADOR, MANY OF LAGEO’S LOCAL COMMUNITIES LIVE IN POVERTY WITH LIMITEDECONOMIC OPPORTUNITIESEmployment opportunities in communitiesnear the geothermal fields are scarce. LaGeois the main provider of employment in itslocalities while the remaining economicsectors consist of small-scale commercial andagricultural activities.Local livelihoods are linked to agriculture inwhich carbon intensive agricultural practiceshave generated low production rates.Meanwhile, hydrological changes due to climatefragility have led to crop loss, resulting in lowincome for local farmers.EXTREME POVERTY RATES SURROUNDING LAGEO’S GEOTHERMAL FIELDS ARE HINAMECAADVANCING GENDER IN THE ENVIRONMENT 13
SUCCESSFUL STRATEGIES From 2000 to 2005, LaGeo implemented a Community Care Program (PACO) based on thevoluntary participation from its employees that included the establishment of a Corporate SocialResponsibility (CSR) Policy in 2004. LaGeo’s CSR Policy establishes its commitment to local communities: to respect their physicalintegrity; their assets and their environment by preventing pollution; and ensuring the activeparticipation of local communities in their local development plans. In 2006, LaGeo founded FundaGeo, a non-profit to replace the PACO program and improvemanagement and social investment efforts, while implementing LaGeo’s CSR Policy. FundaGeo maintains strategic alliances with the municipalities, community developmentassociations (ADESCO), the Ministry of Environment, Ministry of Education, Ministry of Healthunits, non-governmental organizations such as the Fundación Educando un Salvadoreño (FESA),and various institutions such as the Red Cross. LaGeo also created the VIDA project (translates roughly to the “lifetime” project) that is taskedwith the objective of reforesting the areas adjacent to the company’s geothermal plants, with atarget workforce made up of 70% women.A DEEPER LOOK AT LAGEO’S CSR ACTIVITIES ACROSS SECTORSThrough FundaGeo and the VIDA project, LaGeo implemented a series of CSR initiatives to benefitlocal communities, economically empower women, improve the environment, and promote positivecommunity engagement. The following provides a snapshot of these initiatives across sectors:IMPROVED LIVELIHOODS LaGeo not only provides local communities with geothermal steam and surplus condensate forfree but also seed capital, training, and infrastructure to allow communities to dehydrate fruitsand vegetables with geothermal steam.LaGeo also provides surplus condensates and land for fish farming, irrigation, agriculture, forestlandscape restoration, and coffee and poultry farms.REFORESTATION AND MITIGATION Women and men participate in a reforestation project with organic coffee and cocoa plantationsthat increases income; the project includes access for women to training and opportunities toearn the same wages as their male counterparts.14 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
Reforestation projects inspired further VIDA projects to reforest the basins of the Lempa andTorola rivers. The project is developed by the Grupo CEL and intends to plant 3 million trees inthree years with the participation of local women.LaGeo’s improved livelihoods activities result in 1.8 tons of CO2 emissions saved per year.BASIC SOCIAL INFRASTRUCTURE FundaGeo builds and improves infrastructure works that facilitate connectivity, access toeducation, community health services, potable water, and electric power for local communities.FundaGeo facilitates the construction of schools to help local community members study fortheir baccalaureate degrees. This initiative has been a key factor in creating a local pool ofqualified HR staff in area of LaGeo’s geothermal plants for recruitment.CONSERVATION Under the Clean Development Mechanism (CDM), LaGeo worked with the Ministry ofEnvironment to create a wildlife protection park and provide its geothermal condensate forcleaning and irrigation. The park employs women and men equitably as animal keepers and runsan education program led by a woman to educate children about conservation.Women and men are represented equally as staff members at the wildlife park.Women and men are trained in reforestation, conservation of natural resources, environmentallegislation, environmental education, the management of wild species, and how to assist veterinarians.EDUCATION Reforestation schools provide environmental education on protecting and stabilizing soils.Ventana al mundo (Window to the world) is an educational program that trains children andyoung people in science, technology, English, computing, and ethics. The initiative also has ascholarship program at the baccalaureate level, technical and university studies, summer courses,and work training.HEALTH Working with community health centers, preventative and curative medical care is providedequitably to local communities.USAID.GOVADVANCING GENDER IN THE ENVIRONMENT 15
RESULTSWomen in the municipality ofBerlin use geothermal steamto dehydrate fruit, producing15kg of product in each batchworth up to US 75.15 women from localcommunities are hired forsix months a year to planttrees, earning an average ofUS 5.19 per day, the samewage as men.In addition to Ventana almundo, LaGeo works withthe Ministry of Education todeliver a 9-month curriculumthat serves 2,500 studentsfrom 22 schools, empoweringgirls to learn new skills.One project with USAIDand RTI provided healthservices and education to17 communities, reaching12,000 people, enhancingoutreach efforts.Women at the wildlife parkearn US 400 per month,a significant salary whencompared with nationalstandards (US 3.94/day).To date, FundaGeo hasopened 1,250 km ofpowerlines that helpsprevents energy theft.Strengthened communityrelations by paving andsetting 3,675 m of roads,building three vehicularbridges, 11 pedestrianwalkways, and more.16 ADVANCING GENDER IN THE ENVIRONMENTUSAID.GOV
1.8 tons CO2EMISSIONSare avoided per year by replacingtraditional energy with geothermalsteam in local livelihood activities3 million1.2 kmTREESwill be planted by Grupo CELOF POWERLINESOne project constructedpowerlines that servemore than 200 homes inAhuachapán, mitigatingtheft and vandalism111,824m2OF FORESTSare protected for wildlifeconservationINCREASED WOMEN’S ECONOMICEMPOWERMENTUSAID.GOV0 INCIDENCES OF VANDALISM DUE TOPOSITIVE COMMUNITY RELATIONSADVANCING GENDER IN THE ENVIRONMENT 17
KEY TAKEWAYS Large-scale national energy utilities have the opportunity to integrate andimplement national laws and principles on gender equality by taking genderresponsive approaches to business operations and community engagement. Energy utilities can rely on gender analysis tools and good practices to ensuretheir human resources practices are gender-responsive and provide benefits toboth women and men. Energy utilities can develop innovative ways to incr
increase installed capacity for its geothermal plants by 33% by 2020, with the Geothermal Energy Association predicting a global increase of 14.5-17.6% in geothermal installed capacity. Currently, LaGeo is an El Salvadorian geothermal energy utility that provides 27% of the country’s electric power production.
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