Climate Change Data

Environmental Metrics

ESG Focus Areas

• Affordable energy costs
• Sustainable energy system
• Decarbonising electricity generation

Environmental Achievements

• Increased renewable generation output from 1,267GWh to 1,543GWh, saving 646,903tCO2e
• Replaced heavy fuel oil power plant with a cleaner Combined Cycle Gas Turbine (CCGT) plant
• SSE Airtricity supplied 5.3TWh of renewably-sourced energy, abating over 2 million tCO2 emissions

Social Achievements

• Became the first large corporate business in Ireland to become a Living Wage employer
• 75% employee participation in Trust Index Survey with an average score of 67%
• Donated more than €1m to local projects and employees volunteered 3,675 hours

Governance Achievements

• Became a subscriber to the Institute of Business Ethics (IBE)
• Published its first Modern Slavery Statement
• Published Talking Tax 2016 booklet for increased tax transparency

Climate Goals & Targets

Environmental Challenges

• Ensuring energy costs remain affordable for customers
• Maintaining and developing a sustainable energy system
• Decarbonising electricity generation

Mitigation Strategies

• Continued investment in renewable generation
• Switch from heavy fuel oil generation to renewables and gas
• Implementation of Energy Engage Code for vulnerable customers

Supply Chain Management

Supplier Audits: Risk assessment of Tier One supplier spend for 2015/16

Responsible Procurement

• Modern Slavery Statement covering all aspects of SSE’s supply chain

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Responsibility
• Customer Service

Environmental Achievements

• Met 2020 carbon intensity target early for the second consecutive year.
• Reduced average water use per person in non-operational buildings by 6.4% (surpassing the 2.5% target).
• Issued the largest ever Green Bond by a UK company (€600m).

Social Achievements

• Achieved the British Standard for inclusive service provision (BS18477) in both Retail and Networks businesses.
• Awarded £5.7m through community investment funds.
• Implemented the first year of its Inclusion Strategy 2017-2020.
• Ranked number 1 in the FTSE 350 for inclusive job growth.

Governance Achievements

• Achieved the Fair Tax Mark for the fourth consecutive year.
• Published its second Talking Tax report.
• Committed to fulfilling the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.

Climate Goals & Targets

Environmental Challenges

• Increasing cost of supplying energy.
• The energy trilemma (balancing decarbonisation, security of supply, and affordability).
• Closing the gender pay gap.
• Improving processes for speeding up the payment of suppliers.
• Grid capacity constraints for new EV infrastructure.
• Maintaining community benefit funds in a subsidy-free environment.

Mitigation Strategies

• Investing significantly in renewable energy.
• Implementing a new Inclusion Strategy.
• Improving Procure to Pay processes.
• Developing innovative solutions for EV charging infrastructure.
• Working with communities and stakeholders to explore new models of community funding.
• Proactive communication with customers regarding tariff changes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Procurement Charter outlining standards and principles for working with SSE.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting network resilience.

Transition Risks

• Regulatory changes impacting energy generation portfolio.

Opportunities

• Investment in renewable energy.

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD

Certifications: ISO 14001:2004, Fair Tax Mark, Business Working Responsibly Mark (Ireland)

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 13 (Climate action)
• SDG 8 (Decent work and economic growth)
• SDG 12 (Responsible consumption and production)

SSE's activities contribute to these goals through investments in renewable energy, infrastructure development, responsible employment practices, and sustainable resource management.

Sustainable Products & Innovation

• SSE Green renewable energy tariff.

Awards & Recognition

• Green Construction Award and Green Business of the Year Award for Galway Wind Park.
• Green Apple Award for Clyde wind farm.
• Greatest Contribution to Scotland Award for Beauly-Denny transmission project.
• Green Project of the Year Award for Galway Wind Park.
• Best Sponsorship of Women’s Activities at the UK Sponsorship Awards.

Environmental Metrics

ESG Focus Areas

• Renewable Energy

Environmental Achievements

• Reduced carbon emissions through renewable energy projects

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SSE Green Bond Criteria

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Responsible Resource Use
• Decent Work
• Economic Growth
• Fairness
• Inclusivity

Environmental Achievements

• Reduced total carbon emissions (scope 1, 2, and 3) by around 12% between 2019/20 and 2020/21.
• Reduced carbon intensity of electricity generation by 11% to 255gCO2e/kWh.
• Closed last remaining coal-fired power station in March 2020.
• Achieved 'no net biodiversity loss' on new infrastructure projects.
• Reduced air emissions of nitrogen oxides (NOx) by 33% and sulphur dioxide (SO2) by 44%.
• Reduced total water abstracted by 6.3% and total water consumed by almost 29%.

Social Achievements

• Increased number of customers signed up to the Priority Services Register to 770,844.
• Supported 41,400 jobs in the UK and 2,160 jobs in Ireland.
• Paid £379m in UK taxes and €20.4m in Irish taxes.
• Achieved Living Hours accreditation.
• Launched Generation Green Home Upgrade Programme in Ireland.
• Launched 'Solar for Schools' programme in Ireland.
• Allocated £1m to support STEM learning for young people in the North and North East of England.

Governance Achievements

• Enhanced responsibilities of the SHEAC to incorporate further oversight of SSE’s overall performance in ESG ratings and reviews.
• Group Risk Committee assumed oversight of SSE’s internal TCFD process and disclosures.
• Audit Committee of the Board to take oversight of the annual TCFD report.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the coronavirus pandemic.
• Challenges in collecting primary emissions data for scope 3 emissions.
• Year-to-year variation in carbon intensity due to external factors.
• Challenges in increasing gender diversity within technical roles.
• Challenges in achieving a just transition to net zero while balancing competing interests.

Mitigation Strategies

• Adapted operations to keep customers and employees safe during the pandemic.
• Improved scope 3 reporting coverage and data accuracy.
• Investing in a diversified generation portfolio of renewable and thermal low-carbon assets.
• Implementing IN, ON, UP inclusion strategy to increase gender diversity.
• Published Just Transition Strategy outlining 20 principles to underpin the consideration of social impacts.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Code
• Supplier Guidance

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather impacting renewable output
• Floods and heatwaves damaging network assets

Transition Risks

• Climate policy bringing forward closures of unabated gas generation
• Lower than forecast wind energy prices

Opportunities

• New off- and on-shore wind development
• Flexible hydro assets
• Transmission infrastructure supporting net zero transition
• Decarbonisation of transport driving investment in networks
• Low-carbon flexible thermal generation

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001:2015, Fair Tax Mark, Real Living Wage, Living Hours

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 15 (Life on land)

SSE's strategy and operations are aligned to these SDGs through various initiatives.

Sustainable Products & Innovation

• Green electricity tariffs
• Green gas products
• Corporate Power Purchase Agreements
• Smart meters

Awards & Recognition

• Fair Tax Mark
• Real Living Wage
• Living Hours

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Just Transition
• Decent Work and Economic Growth
• Biodiversity

Environmental Achievements

• Reduced total GHG emissions (scope 1, 2, and 3) by 35% between 2017/18 and 2021/22.
• Reduced scope 1 GHG emissions intensity by 16% from 2017/18 baseline.
• Reduced scope 1 and 2 GHG emissions by 44% from 2017/18 baseline.
• Increased renewable energy capacity connected to SSEN Transmission’s network by 1GW to 7.8GW.
• 61% of SSE’s relevant business units interacting with the environment are certified to ISO14001 by reported revenue.

Social Achievements

• Created 1,000 new jobs in 2021/22.
• Maintained Fair Tax Mark accreditation for the eighth consecutive year.
• Achieved Living Hours accreditation.
• Granted over £11m to communities and charities.
• Launched employee innovation app 'iDEas' resulting in over 100 idea submissions, 40 in delivery phase.

Governance Achievements

• Published Net Zero Transition Plan.
• Revised greenhouse gas emissions targets aligned to a 1.5°C warming pathway.
• Refreshed Inclusion and Diversity Strategy with four strategic focus areas.
• Published comprehensive Inclusion and Diversity Report 2022.
• Embedded sustainability measures in the Annual Incentive Plan (AIP).

Climate Goals & Targets

Environmental Challenges

• Increased scope 1 GHG emissions intensity in 2021/22 due to increased demand for carbon-intensive oil-fuelled peaking plant in Ireland.
• Increased number of environmental incidents in 2021/22 reflecting growth in business activity and improved reporting.
• High gender pay gap.
• Need to secure sufficient talent for the net zero transition.

Mitigation Strategies

• Advocating for policy mechanisms that support the deployment of renewable technologies.
• Implementing initiatives to prevent and reduce SF6 leakages.
• Developing re-training programmes to widen its reach to those that want to join the green revolution.
• Implementing its Inclusion and Diversity Strategy to improve the proportion of women at all levels.

Supply Chain Management

Supplier Audits: 48% of suppliers by spend have set or committed to set science-based targets.

Responsible Procurement

• Sustainable Procurement Code
• Sustainability Data Capture Tool (SDCT)
• Powering Net Zero Pact

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather interrupting energy supply or generation
• Storm damage to networks

Transition Risks

• Changes in political and regulatory requirements

Opportunities

• Accelerated transmission growth
• Accelerated wind investment
• Driving distribution transformation
• Valuable flexible thermal generation
• Valuable flexible hydro generation

Reporting Standards

Frameworks Used: GRI, SASB Standards, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, Fair Tax Mark, Real Living Wage, Living Hours

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 15 (Life on land)
• Goal 12 (Responsible consumption and production)

SSE's initiatives contribute to these goals through renewable energy development, job creation, infrastructure investment, emissions reduction, biodiversity protection, and sustainable resource management.

Sustainable Products & Innovation

• SF6-free gas-insulated substation
• SF6-free Siemens Energy Clean Air Power Voltage Transformers
• Repurposing wind turbine blades for EV charging hubs

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable energy generation
• Affordable and reliable energy
• Supply chain management
• Skilled workforce
• Just transition

Environmental Achievements

• Scope 1 GHG emissions intensity of electricity generated reduced by 2% between 2021/22 and 2022/23 to 254 gCO2e/kWh
• 65% of total waste recycled/composted; only 5% sent to landfill
• Increased renewable generation output by 730GWh compared to 2021/22

Social Achievements

• Implemented a 5% cost-of-living pay increase for employees earning less than £100,000 annually
• Launched a new family leave policy including additional paid leave for partners and those experiencing pregnancy loss
• Achieved Inclusive Service Kitemark certification

Governance Achievements

• Implemented Sustainability Assessment and Action Plan (SAAP) for large capital projects
• Linked performance against 2030 Goals to the longer-term Performance Share Plan for Executive remuneration
• Published second Inclusion and Diversity Report

Climate Goals & Targets

Environmental Challenges

• Increased total GHG emissions (14%) due to acquisition of Triton Power and higher thermal generation output
• Skills shortages in the energy sector
• Supply chain disruptions and capacity constraints
• Energy affordability challenges for consumers
• Extreme weather events impacting operations

Mitigation Strategies

• Accelerated investment plan (NZAP Plus) with £18bn investment to 2027
• Development of low-carbon thermal generation projects (CCS, hydrogen)
• Investment in energy efficiency measures and renewable energy sources
• Supplier engagement and collaboration on climate action
• Workforce planning and skills development initiatives
• Investment in weather-related resilience expenditure

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Code
• Supplier Guidance
• ESG and Sustainability Clause for SSE Renewables suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Storms
• Floods
• Heat waves

Transition Risks

• Regulatory changes
• Market shifts
• Changes in political and regulatory requirements

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy

Reporting Standards

Frameworks Used: TCFD, CDP, SASB, UNGC

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 13
• SDG 8

2030 Goals aligned to these SDGs

Sustainable Products & Innovation

• Low-carbon thermal generation technologies
• Renewable energy projects
• Smart grid technologies

Awards & Recognition

• Scottish Green Energy Award for Innovation
• Social Responsibility Project Award at Business & Finance ESG Awards 2023

Environmental Metrics

ESG Focus Areas

• Fair Tax
• Net Zero
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Reduced thermal generation to 15,247 GWh in 2023/24 from 18,313 GWh in 2022/23, resulting in lower environmental taxes.

Social Achievements

• Increased headcount by 14% compared to the previous year.
• 10 years of Fair Tax Mark accreditation.
• Won the PwC Building Public Trust Award for ‘Tax Reporting in the FTSE 350 – UK Focused Companies’ for two consecutive years.

Governance Achievements

• Complete compliance with SSE’s Group Tax Policy throughout 2023/24.
• Linking a portion of Executive Director remuneration with its 2030 Goal linked to championing Fair Tax.
• Transparent tax reporting exceeding UK company law requirements.

Climate Goals & Targets

Environmental Challenges

• Increased complexity and volume of tax compliance requirements.
• Public perception of corporate tax practices.
• Uncertainty in tax policy due to Brexit, the COVID-19 pandemic, and geopolitical events.

Mitigation Strategies

• Proactive engagement with HMRC and other tax authorities.
• Maintaining a low-risk rating with HMRC.
• Developing a robust tax system that enables long-term planning.
• Utilizing tax incentives to minimize tax liability within legal frameworks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Fair Tax Mark

Certifications: Fair Tax Mark

Third-party Assurance: Fair Tax Foundation

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth

Championing fair tax is linked to SDG 8.

Awards & Recognition

• PwC Building Public Trust Award for ‘Tax Reporting in the FTSE 350 – UK Focused Companies’ (two consecutive years)