Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Safety
• Customer Satisfaction
• Employee Well-being
• CO2 Emissions Reduction
• Socially Responsible Procurement
• Circular Economy

Environmental Achievements

• CO2 emissions reduced by almost 30 kilotonnes compared to 2014.
• Achieved level 5 on the CO2 performance ladder.
• Opened a sustainable, energy-positive office building in Duiven.
• CO2 saving of 3,700 tonnes in Nijmegen heating network (70% reduction compared to gas).

Social Achievements

• Step2Work program helped 103 people find jobs.
• 1000 colleagues participated in volunteer projects.
• Customer satisfaction remained at 95% in the consumer market and rose to 86% in the business market.

Governance Achievements

• Maintained solid A rating profile (S&P AA-/A-1+/stable outlook; Moody’s Aa2/P-1/stable outlook).
• Socially Responsible Procurement (SRP) at 66%.

Climate Goals & Targets

Environmental Challenges

• Inadequate anticipation of the impact of the energy transition.
• Data quality issues.
• Feasibility of meter replacement volume.
• Increasing spatial planning complexity.
• Cybercrime.
• Changing legislation and regulations.
• Sufferance tax increases.
• Gas faults due to water mains breakages.

Mitigation Strategies

• Active role in energy sector transition, dialogue with partners, data-driven network management.
• Improvement program to enhance data quality and reliability.
• Thorough preparations, reduction of dependencies, back-up plans.
• Intensive contacts with stakeholders, specialized employees for planning.
• Integrated security management system, security awareness training, collaboration with National Cyber Security Centre.
• Proactive dialogue with government, scenario calculations, regulatory awareness improvement.
• Legal proceedings where sufferance tax is unjustly levied.
• Analysis of high-risk locations, collaboration with Vitens, proactive replacement of gas and water mains.

Supply Chain Management

Responsible Procurement

• Alliander Suppliers Code of Conduct (based on OECD guidelines)
• Socially Responsible Procurement (SRP) statements for 66% of goods and services.
• Circular procurement objective (40% by 2020).

Climate-Related Risks & Opportunities

Transition Risks

• Inadequate anticipation of the impact of the energy transition.

Reporting Standards

Frameworks Used: GRI G4, Electric Utilities Sector Supplement

Third-party Assurance: PricewaterhouseCoopers Accountants N.V. (PwC)

Sustainable Products & Innovation

• Smart meters
• Electric vehicle charging infrastructure

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Safety
• Customer Satisfaction
• Stakeholder Engagement
• Supply Chain Responsibility
• Emissions Reduction

Environmental Achievements

• Reduction in energy consumption in buildings compared to 2015
• Increased green gas feed-in (17,255,674 m3)
• Reduction in Scope 1, 2, and 3 emissions (excluding greening)

Social Achievements

• 100% of workforce represented in formal joint management-worker health and safety committees
• Employee training hours: 3.35% of total labor costs
• 70% of procurement based on Alliander's Socially Responsible Procurement (SRP) guidelines

Governance Achievements

• Implementation of a three lines of defense model to safeguard the quality of CSR information
• CSR is a key responsibility for all business units and forms an integral part of the Planning & Control cycle
• No conflicts of interest reported in 2016

Climate Goals & Targets

Environmental Challenges

• Climate change risks (flooding, wildfires, storms)
• Energy transition challenges
• Recruitment issues for energy supply
• Availability of technical skills

Mitigation Strategies

• Membership in the Delta Programme to discuss and coordinate climate change risks
• Strategic Energy Transition pillar and policy for sustainable operations
• Active contribution to political and other debates to highlight steps necessary for the further development of the energy market

Supply Chain Management

Supplier Audits: 70.07% of procurement based on SRP guidelines

Responsible Procurement

• Socially Responsible Procurement (SRP) guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires
• Storms

Reporting Standards

Frameworks Used: GRI G4.0

Third-party Assurance: Unqualified reasonable assurance report for the most relevant part of the annual report; Unqualified limited assurance report for the rest of the CSR part.

Environmental Metrics

ESG Focus Areas

• Safety
• Customer Satisfaction
• Energy Transition
• Employee Well-being
• CO2 Emissions Reduction
• Circular Economy
• Supply Chain Responsibility

Environmental Achievements

• Reduced CO2 emissions by 23% to 632 kilotonnes in 2017.
• Greened 114 kilotonnes of network losses with Guarantees of Origin.
• Reduced CO2 emissions from buildings by 10% and vehicle emissions by 2%.

Social Achievements

• Offered 102 apprenticeships to people at a distance from the labour market.
• Maintained level 5 on the CO2 performance ladder.
• Improved customer satisfaction in the business market (39% NES score).

Governance Achievements

• Voluntarily applied the Dutch Corporate Governance Code.
• Maintained solid A rating profile from S&P and Moody's.
• Improved internal controls according to Deloitte's audit.

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled technical staff in the labor market.
• Rapidly increasing demand for new energy connections.
• Uncertainty surrounding the pace of the energy transition.
• Cybersecurity risks associated with digitization.

Mitigation Strategies

• Launched large-scale recruitment campaigns.
• Implemented smarter work processes and better planning.
• Invested in training and reskilling of employees.
• Expanded security function within IT and implemented cybersecurity measures.

Supply Chain Management

Supplier Audits: 14 audits carried out in 2017

Responsible Procurement

• Alliander Suppliers Code of Conduct
• Socially Responsible Procurement (SRP) policy (70.4% coverage)

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Wildfires
• Storms

Transition Risks

• Uncertainty surrounding the pace of the energy transition
• Mismatch between regulations and reality

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive option), Revised Dutch Corporate Governance Code 2016, EU Directive on disclosure of non-financial information and diversity

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 7: Affordable and clean energy
• SDG 8: Decent work and economic growth
• SDG 11: Sustainable cities and communities
• SDG 12: Responsible consumption and production

Alliander's activities contribute to these goals through its efforts to provide reliable and affordable energy, create decent work opportunities, promote sustainable urban development, and support responsible consumption and production practices.

Sustainable Products & Innovation

• Smart meters
• Neighborhood battery
• Public DC station
• Fair Meter

Awards & Recognition

• Diamant-award Runner Up for diversity policy

Environmental Metrics

ESG Focus Areas

• Reliability of supply
• Safe working practices and infrastructure
• Promoting renewable energy generation
• Working together on innovative solutions
• Data-driven network management
• Talent acquisition and development
• Customer satisfaction
• Responsible investment policy
• Organisational capacity for change
• Future-proof network
• Corporate social responsibility in the supply chain
• Corporate Governance and business ethics
• Workplace well-being
• Data security, privacy, and cybersecurity
• Access to affordable energy

Environmental Achievements

• CO2 emissions decreased by 24 kilotonnes compared to the previous year (8%), from 288 to 264 kilotonnes.
• 30% of all primary assets were purchased on the basis of circular procurement.
• More than 95% of network losses will be offset over time due to a new contract with Ørsted.

Social Achievements

• Offered 101 apprenticeships to people at a distance from the labor market.
• Customer convenience score for the consumer market stood at 55% in 2019.
• Launched an online campaign to inform customers who are in the process of moving about taking their energy contract along with them or concluding a new contract.

Governance Achievements

• Credit ratings from S&P and Moody’s remained unchanged.
• Issued a new green bond loan.
• Alliander won the FD Henri Sijthoff Award for its 2018 annual report.

Climate Goals & Targets

Environmental Challenges

• Pressure on the power grid due to the acceleration of the energy transition, economic growth, and shortage of technicians.
• Insufficient transmission capacity to meet rising demand for energy.
• Shortage of technical staff.
• Rising costs of the energy supply.

Mitigation Strategies

• Expanding, upgrading, and implementing smart solutions to alleviate the shortage of transmission capacity.
• Applying smart solutions and innovations.
• Devoting a lot of energy to recruiting technically-minded colleagues.
• Working in close collaboration with the industry and regional educational institutions to spark the interest in more young people for a job in the technical sector.
• Implementing various changes in operational processes to improve performance in terms of promptness, increasing productivity, and cost-awareness.
• Long-term and integrated outsourcing of projects to contractors.
• Improving work planning using more precise standards in projects.
• Investing in the use of flexible solutions, such as deploying local combined heat and power (CHP) systems in a local flex-market.

Supply Chain Management

Supplier Audits: 11 supplier audits carried out in 2019.

Responsible Procurement

• Alliander Supplier Code of Conduct based on OECD guidelines.
• Sustainable procurement integrated into tender invitation/evaluation criteria.
• Outsourcing policy incorporates provisions relating to human rights, working conditions, use of raw materials, recycling, and carbon emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Floods, wildfires, storms

Transition Risks

• Mismatch between regulations and reality in energy transition policy.

Opportunities

• Development of energy-efficient products
• Use of flexible solutions to address capacity problems.

Reporting Standards

Frameworks Used: GRI SRS reporting guidelines, Dutch Corporate Governance Code 2016, EU Directive on disclosure of non-financial information and diversity, International Integrated Reporting Council (IIRC)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)

Alliander's activities contribute to these goals through initiatives related to reliable energy supply, renewable energy generation, safe working environments, sustainable cities, and circular economy practices.

Sustainable Products & Innovation

• Prefab substation
• Fair meter

Awards & Recognition

• FD Henri Sijthoff Award (2018 annual report)
• Second place in the running for the Ministry of Economic Affairs and Climate Policy’s Crystal Award (2018 report)

Environmental Metrics

ESG Focus Areas

• Community Relations
• Occupational Health and Safety
• Corporate Governance
• Land Use and Biodiversity
• Business Ethics
• Emissions, Effluents and Waste
• Human Capital
• Product Governance
• Carbon - Own Operations

Governance Achievements

• Alliander's annual report is written in accordance with GRI Standards – Comprehensive Option

Climate Goals & Targets

Environmental Challenges

• Community tension due to network impacts
• Health and safety incidents related to network construction and maintenance
• Ethical risks within the company potentially leading to misconduct

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – Comprehensive Option

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Energy Efficiency
• Green Buildings
• Climate Change Mitigation

Environmental Achievements

• Avoided CO2 emissions (Scope 1+2): 1,074 metric tonnes; Avoided CO2 emissions (Scope 3): 3,271,722 metric tonnes
• Increased capacity of renewable electricity production connected to the grid to 7.726 MW by December 2022
• Renewable electricity production feed into grid by total solar, wind capacity increased to 9,475,487 MWh by December 2022
• Energy consumption savings of 1,083,641 GJ per year

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Achieving quick, efficient, and sustainable integration of renewable energy sources into the grid and maintaining a stable electricity supply.
• Challenges in sustainable building practices, including availability and affordability of sustainable materials, knowledge and skills needed, and limitations of the Dutch Environmental Performance Buildings score system.

Mitigation Strategies

• Designing standardized building blocks for substations to enable quick and efficient construction.
• Implementing a layer model for building construction, combining a standardized inner shell with a flexible outer shell for better environmental fit.
• Exploring timber-based construction (HSB) for lower environmental footprint.
• Working with Movares to develop Modular Building Standards for timber frame construction and green roofs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of certified sustainable materials (where available).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ICMA Green Bond Principles (GBPs), Green Loan Principles (GLPs), EU Taxonomy

Certifications: Null

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13

Alliander's Green Finance Framework aligns with UN SDGs 7, 9, 11, and 13.

Sustainable Products & Innovation

• Standardized and sustainable electricity distribution stations.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy security
• Climate change
• Digitalisation and data security
• Being a good employer
• Supply chain responsibility
• Governance
• Stakeholder dialogue
• Circular operations
• Safe infrastructure
• Biodiversity

Environmental Achievements

• Achieved climate-neutral operations in 2023 (net zero carbon emissions from own business operations after greening)
• Circular procurement accounted for 31% of total procurement (2022: 28%)
• Removed over 168 kilometers of grey cast-iron and asbestos cement gas pipes (16 km more than the annual target)

Social Achievements

• Launched the ‘Met de stroom vooruit’ (Powering ahead) multimedia campaign for consumers
• Welcomed 2,196 new employees and agency workers
• Launched the Future Leader Board to represent the voice of young employees

Governance Achievements

• Updated materiality analysis using the guidelines of the Corporate Sustainability Reporting Directive (CSRD)
• Attained level 4 on the KIWA Safety Ladder
• Implemented a new central, automated Privacy Control Framework

Climate Goals & Targets

Environmental Challenges

• Network congestion due to increased electrification and demand exceeding capacity
• Shortage of technical staff and materials
• Lack of space for infrastructure expansion
• Increasing aggression towards employees
• Rising energy prices impacting affordability

Mitigation Strategies

• Maximising construction efforts and deploying flexible solutions
• Improving communication with stakeholders and customers
• Signing long-term partnerships with contractors and suppliers
• Working with the Dutch Ministry of Economic Affairs and Climate Policy on the National Network Congestion Action Programme
• Implementing smart charging for electric vehicles
• Establishing an aggression help desk

Supply Chain Management

Supplier Audits: 9 audits in 2023

Responsible Procurement

• Alliander Code of Conduct for Suppliers
• CSR criteria in tender procedures
• CO2 score in tenders

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• High temperatures

Transition Risks

• Phasing out gas infrastructure
• Demand for transmission capacity exceeding capacity

Opportunities

• Growing electrification
• Growth of green gas feed-in

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, CSRD (Corporate Sustainability Reporting Directive), TCFD (Taskforce on Climate-related Financial Disclosures)

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Deloitte Accountants B.V.

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

Alliander's activities contribute to these goals through investments in sustainable energy infrastructure, promoting energy efficiency, fostering innovation, and reducing environmental impact.

Sustainable Products & Innovation

• Compact connection module
• Plug-and-play medium-voltage network

Awards & Recognition

• Henri Sijthoff Award (2022 annual report)
• Kristal Award (2022 annual report)
• CVO of the Year award (Walter Bien)
• Architectenweb 2023 ‘Office Building of the Year’ award (Westpoort office)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Reliability of energy supply
• Affordability
• Accessibility of renewable energy
• Safety
• Inclusion

Environmental Achievements

• Gross CO2 emissions from own business operations: 208 kilotons (target: max 416 kilotons, 2023: 425 kilotons)
• Net CO2 emissions from own business operations after greening: 3 kilotons (target: 0 kilotons, 2023: 0 kilotons)
• Circular procurement: 31% (target: at least 37%, 2023: 31%)

Social Achievements

• Employee survey: enthusiasm and engagement 84% (target: at least 81%, 2023: 82%)
• Absenteeism among own employees: 4.4% (target: max 4.3%, 2023: 4.4%)
• Women in managerial positions: 30.6% (target: at least 33%, 2023: 30.5%)
• People with poor employment prospects: 123 (target: at least 168 apprenticeships, aim is a minimum of 154 places that comply with the Dutch Labour Participation Act and comply with the Dutch Labour Participation Quota Act, 2023: 125)

Governance Achievements

• Credit rating maintained a solid A rating profile (S&P A+/A-1/stable outlook, Moody’s Aa3/P-1/stable outlook)

Climate Goals & Targets

Environmental Challenges

• Inadequate completion of work packages due to increased work volume, technical staff shortage, material scarcity, and volatile work forecasts.
• Inadequate capacity to deliver and adapt to change due to high demands on employees.
• Accidents caused by unsafe situations despite safety measures.
• Restrictions and uncertainties around laws, regulations, and policies.
• Threats to IT/OT landscape continuity due to cyberattacks and geopolitical developments.
• Pressure on financial position due to high investments and regulatory compensation methods.
• Not meeting customer expectations due to high demand, capacity shortages, and longer waiting periods.
• Uncertainty over the future energy system and potential mismatches with investments.
• Ineffective growth of the organization due to constraints on absorptive capacity.

Mitigation Strategies

• Increasing work completion through efficient grid use, process improvements, and collaboration with municipalities.
• Improving organizational capacity through teamwork, strategic focus, and performance monitoring.
• Reinforcing safety culture, asset safety, and work instructions.
• Maintaining constructive relationships with legislators and regulators, proposing adjustments to laws and regulations.
• Increasing digital resilience, implementing an Information Security Management System, and promoting security maturity.
• Maintaining a healthy financial standing, using hybrid financing instruments, and exploring state capital contribution.
• Improving customer service through information provision, process improvements, and proactive communication.
• Operating according to the Alliander Energy Vision, National Energy System Plan, and Future Scenarios for Investment Plans, collaborating with authorities on energy planning.
• Controlled growth through focused recruitment, onboarding support, and process quality improvements.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD (starting from 2024)