Annexes Board of Management Report

Shareholders

Locally connected

As no other energy company, Eneco Group is connected with and focuses on society. We are working on a sustainable world, together with our customers, shareholders and partners.

Support from each of these three pillar is indispensable, in addition to government policy that is directed at sustainability. Our shareholders are the 53 Dutch municipalities listed below.

Municipalities with more than 2%
of the shares

Rotterdam 31.69%, The Hague 16.55%, Dordrecht 9.05%, Leidschendam-Voorburg 3.44%, Lansingerland 3.38%, Delft 2.44%, Zoetermeer 2.34%, Nissewaard 2.14%, Pijnacker-Nootdorp 2.10%.

Municipalities with less than 2%
of the shares

Aalsmeer, Achtkarspelen, Alblasserdam, Albrandswaard, Ameland, Amstelveen, Barendrecht, Binnenmaas, Bloemendaal, Brielle, Capelle aan den IJssel, Castricum, Cromstrijen, Dongeradeel, Ferwerderadiel, Giessenlanden, Goeree-Overflakkee, Gorinchem, Haarlemmerliede & Spaarnwoude, Hardinxveld-Giessendam, Heemstede, Hellevoetsluis, Hendrik Ido Ambacht, Kollummerland c.a., Korendijk, Krimpen aan den IJssel, Krimpenerwaard, Leerdam, Lingewaal, Molenwaard, Oud-Beijerland, Papendrecht, Ridderkerk, Rijswijk, Schiedam, Schiermonnikoog, Sliedrecht, Strijen, Uithoorn, Vianen, Westvoorne, Zandvoort, Zederik, Zwijndrecht.

Personnel

Our employees

Eneco Group aims for a well-balanced composition of its workforce. This not only demands a good distribution between, for example, men and women on which we report here. There is room in the organisation for people with a different background or personality and for people with an occupational disability. See also Employee engagement. We refer to the financial statements, note 5 for the number of employees who work abroad.

2017

2016

Number of own employees

Total average workforce in FTE

3,049

2,882

Total workforce in FTE at year end

3,043

2,551

Men - women ratio

percentage of men and women of the total number of employees in FTE at year end

Men

63

63

Women

37

37

Age distribution

percentage per age group of the total number of employees in FTE at year end

age 15-24

2

2

age 25-34

31

29

age 35-44

32

30

age 45-54

21

23

age 55 and over

14

16

Diversity

in percentages at year end

Women in managerial positions

27

33

Employment contract

in percentages at year end

Employment contract for an indefinite period

89

90

Employees with a Collective Labour Agreement (CLA) contract

81

72

Employees with a full-time contract

80

75

Absenteeism

In percentages

Absenteeism

5.3

5.3

Stakeholder table

Dialogue with stakeholders

Stakeholders

Contact moment / activity

Discussion points

Outcomes

Customers - retail Eneco Netherlands

  • Our virtual showcase: Eneco.nl
  • Social media
  • Webcare
  • Local residents day
  • Sustainable energy lessons
  • WindLab
  • Customer newsletter
  • Community event
  • Club Eneco
  • National Championship Bicycling against the Wind
  • Customer surveys, ongoing process
  • Heating, open days
  • Sounding board group
  • Customer panel meeting in Utrecht
  • Mass media campaigns
  • Testing new propositions such as the HeatWinner
  • Sustainable strategy and propositions
  • Sustainable energy lessons at primary schools and in our WindLab
  • In our newsletter, we show customers what we are doing concretely and we stimulate customers to take action
  • At the community event, customers were informed about the new community and the separation of the Toon and Eneco Community and inspired by the collaboration with Solar Team Eindhoven.
  • We express our appreciation to our customers with the loyalty programme.
  • We let people experience the power of HollandseWind.
  • Campaigns, for instance, about our brand theme ‘Welcome in the new world’, electric transport and Toon.
  • Good dialogue with our customers and providing information regularly.
  • Facebook: nearly 40,000 followers, Twitter: 14,000 followers and Instagram 750 followers.
  • More than 50 energy lessons by more than 15 guest lecturers from Eneco to over 1,200 students. More than 4,000 students have already visited the windlab.
  • Visibility on TV, radio, online and social media
  • Commercial roll-out of the HeatWinner

Customers - commercial Eneco Netherlands

  • Personal contact via on-site visits
  • Seminars and training sessions in Rotterdam and on site at the customer
  • Newsletters
  • Innovation day
  • Symposium Agro Energy
  • One Planet Dinner
  • Discussions with Customer Council (SME)
  • Existing product and services portfolio
  • Developing new products and services (together) for a company or a group of companies
  • Services and administrative services
  • Customer satisfaction
  • More confidence to enter into long-term agreements based on these possibilities

Customers - Eneco Belgium

  • Website eneco.be/nl
  • Social media
  • Newsletter
  • Brochures and flyers
  • Blogs
  • Customer Care
  • Surveys (NPS)
  • Sustainable energy products
  • Local energy production
  • Investing together locally in solar and wind energy
  • Facebook: 22,000 likes, 21,000 followers
  • Twitter: 3,000 followers
  • Website: 600,000 visitors

Customers - LichtBlick

  • Website lichtblick.de
  • Social media
  • Newsletter
  • Brochures and flyers
  • Customer Care
  • Surveys
  • Sustainable energy products
  • Sales events
  • Environmental efforts
  • Smart Home products
  • Facebook: 32,000 friends
  • Twitter: 11,000 followers
  • Website: 700,000 visitors
  • Nominated for the ninth time by Kundenmonitor Deutschland as energy company with the best service and customer satisfaction

Shareholders

  • Council information meetings of various municipalities
  • Explaining and discussing strategy 2018-2022
  • Explaining and discussing year plan 2018
  • Explaining and discussing various investments
  • Explaining and discussing half-year figures 2017 including written questions procedure
  • Work visit to Luchterduinen
  • Work visit Innovation Day
  • Future shareholdership
  • Unbundling of the company
  • Investments and expected returns
  • Internationalisation
  • Sustainability
  • Strategy
  • Customer involvement in the energy transition

Capital providers and investors

  • Regular consultations with S&P
  • Regular consultations with capital providers
  •  Regular consultations with counterparties
  • Credit rating of the company
  • Arrangement of adequate financing facilities
  • Capital structure at the time of the unbundling
  • New financing facilities

Local residents and cooperatives

  • Various meetings and collaboration discussions with cooperatives of residents
  • Customer days at Eneco heating power plant in Utrecht
  • Process participation together with municipalities and cooperatives for the structure of a sustainable energy landscape.
  • Transparency to the local environment about our projects, what we are investigating, and why and what the results are.
  • The local environment is given a role in the development phase meaning that residents also have influence on the plans (location, size, etc.)
  • Take the next steps and further increase the sustainability based on collaboration with cooperative of residents with a wind farm.
  • Tours of our wind farms and biomass power plant
  • Various cooperatives, both of companies and residents, and Eneco have entered into a collaboration for the energy transition in the local environment of the cooperative.

Employees and the Works Council in the Netherlands

  • Consultations between the Works Council and senior management/HR per business unit
  • Discussion of theme groups with project leaders / HR / senior management
  • Works Council speaks at personnel meetings
  • Consultations meetings between Central Works Council and CEO/COO/HR Eneco Group
  • Consultations between Central Works Council and Supervisory Board, municipal councils and shareholders in connection with the sale of Eneco shares.
  • Consultation between the Central Works Council and the Trade Unions
  • Central Works Council informs SER and business units
  • Organisational changes within the business unit
  • At the request of the Works Council, discussing project and gathering information in discussions with stakeholders
  • Existing procedures at the level of own business unit
  • Procedures regarding organisational and employment conditions issues with impact on the whole group
  • Sale of Eneco shares and the interests of employees in this matter
  • Acquisitions / employment conditions issues / CLA
  • Training in modern employee participation
  • Provide information and/or complete advice procedures in dialogue
  • Draft a preliminary advice for a Works Council
  • Informing employees about current Central Works Council / Works Council procedures
  • Gather information within the company as input for current procedures
  • Municipalities are looking in collaboration for a suitable manner to sell part of their shares
  • Wider support for modern employee participation

Employees Eneco Belgium

  • Yammer
  • Intranet
  • One Integration Communication
  • Quarterly Business Review Sessions
  • Leadership Meetings
  • Eneco/Eni partnership
  • Business strategy
  • Financial matters and results
  • Improvement in employee engagement
  • Increasing business awareness
  • Strengthening team spirit after the merger of Eneco/ENI

Employees LichtBlick

  • Intranet
  • Regular communication
  • Employee events and Christmas party
  • Eneco partnership
  • Business strategy

Nature and environmental organisations

  • Annual benchmark among the Dutch electricity suppliers by the Consumers’ Association, Greenpeace, Nature & Environment, WISE.
  • Annual benchmark among Belgian energy suppliers by Greenpeace
  • Partnership between LichtBlick and WWF, Campaign “Wir beschleunigen die Energiewende”
  • Partnership between LichtBlick and “Geo schützt den Regenwald”
  • Our impact on the planet and how to reduce this together with our customers and other partners
  • The ranking is published in October based on the data that we have submitted about our investments, production, purchasing and the energy that we supply.
  • Improvement of wider acceptance of the energy transition (“Energiewende”)

What others say about our sustainable performance

Our customers, investors and other stakeholders attach value to proof in the form of certificates and benchmarks.

Sustainability benchmarks

The most important sustainability benchmarks are the Onderzoek Duurzaamheid Nederlandse Stroomleveranciers (Sustainability of Dutch Electricity Suppliers Report) which is compiled annually by the Dutch Consumers’ Association, Greenpeace, Natuur & Milieu and WISE, and in Belgium the Greenpeace classification of Belgian electricity suppliers.

A good report card

Our brands Eneco and Oxxio had a higher ranking this year in the ‘Onderzoek Duurzaamheid Nederlandse Stroomleveranciers’ due to large investments in wind energy. Eneco's score rose from 7.0 in 2016 to 7.9 this year. Eneco is number eight in the ranking and is the only one of the large energy companies to achieve a more than sufficient score. Eneco also maintained its position in the group of 'frontrunners’; the group of companies that is actively contributing to the transition to a sustainable energy supply. According to the researchers, Eneco is ‘the most sustainable of the big energy suppliers also in 2017’.

The higher score for Oxxio is also noteworthy: from 4.3 in 2016 to 6.1 in 2107. With this, Oxxio is leading in the group of 'followers’. According to the researchers, Oxxio's leap ahead can be explained by a high investment figure in sustainable energy of parent company Eneco Group and a change in the supply mix of Oxxio from hydro energy to 100% wind energy. Further improvement is possible according to them in the purchasing of electricity.
Read more about the ‘Onderzoek stroomleveranciers rapport 2017'(Sustainability of Dutch Electricity Suppliers Report 2017).

Greenpeace ranking of Belgian electricity suppliers

Each year, Greenpeace issues report cards to the Belgian energy suppliers. Eneco Belgium received a good report card from Greenpeace with a score of 18 out of 20 points. The production capacity of Eneco Belgium increased again in the past year, so that it could guarantee the supply of Belgian green electricity to its growing portfolio of households.
Greenpeace cites Eneco Belgium as ‘an example’ for the big energy suppliers. The company received this high score because, being the largest non-cooperative electricity producer, it has resolutely opted for 100% renewable electricity and gas. Read more about this report http://mijngroenestroom.be/klassement/

ESG scores and sustainability standards

Stakeholders also expect good scores in the ESG systems (Environmental, Social and Governance) and participation in sustainability standards.

First Dutch company in Science Based Targets initiative

Eneco Group was admitted as the first Dutch company to the Science Based Targets initiative (SBTi). This international initiative helps companies formulate objectives in line with the Paris climate agreements. With the recognition of the SBTi, Eneco Group is one of the first companies worldwide - besides Walmart, Sony and Coca-Cola - to take the limits of the planet as the point of departure for their sustainability goals. It is exceptional that we, as Eneco Group, take responsibility for the whole chain in which we are active. Bringing our goals in line with the Paris climate agreements helps us to achieve our One Planet ambition. It also contributes to finding alternatives for, for example, natural gas at customers and thus enables us to create new business models.

Voluntary participation in CDP Climate Change

At the initiative of investors, the Carbon Disclosure Project (CDP) has been approaching listed companies for 15 years already to share their climate footprint. This transparent and comparable publication of emissions enables investors to estimate risks better. Eneco Group participated voluntarily in the CDP Climate Change programme for the first time in 2017. This resulted in a C ranking. The possible changes in the shareholdership of Eneco Group was a good reason to participate.

Sustainalytics

Sustainalytics is a global player in the field of assessment of the sustainability of companies at the request of investors. Eneco Group is also being assessed by Sustainalytics since last year. With an overall score of 65 points, our performance ranks among the best 33% of the companies. We aim to provide more information to Sustainalytics on a regular basis. We are convinced that our score can be improved significantly by providing more information.

FIRA

FIRA is a verification agency that verifies the CSR performance of companies and institutions at the request of purchasing companies. Our present score ‘Silver’ will be changed into ‘Extended CSR Report’ in the beginning of 2018.

EcoVadis

We use the EcoVadis system to verify our suppliers (see Increasing the sustainability of our chains). In addition, our customers also request our CSR score via EcoVadis. Our present score of 55 results in the qualification ‘Silver'.

Reporting policy

Integrated report

In this integrated report, Eneco Group accounts for its financial and non-financial performance and its value creation. Eneco Group opts for a compact and transparent report that fulfils the information requirement of its stakeholders.

Reporting in accordance with GRI

In this report over 2017, we adhere to the Standards (version 2016) of the Global Reporting Initiative (GRI) in as far as possible. The contents of this report refer to the specifically chosen GRI Standards 102 and 103. The topics that we discuss in the report were also determined based on a materiality analysis based on which the most relevant topic were determined for both stakeholders and for the Group itself. An external validation of the material themes, that we have analysed, will give us more insight into how our reporting can be aligned with the GRI standards. We have applied GRI Referenced in this report. We aim for a GRI application on Core level for future annual reports. In view of this, the material themes and the strategic KPIs will be reviewed in 2018.

We report based on the steering framework of the company. That is leading. The steering framework has been derived from our strategy: with it, we show our progress and the degree in which we are realising our ambitions. We verify with our stakeholders whether our steering framework is sufficiently material. The Core level that we are aiming for means that for each relevant aspect (topic), identified in the materiality analysis, we will report on at least one GRI Standard and indicator that corresponds best with our steering framework, see paragraph: Strategic KPIs .

Integrated reporting

Eneco Group's annual report is developing into an integrated report on the Group's financial and non-financial performance. The International Integrated Reporting Council (IIRC) framework enables us to better clarify the interrelationship between the core elements of our policy in our report. We are increasingly applying elements of this framework in our annual report such as a value creation model this year.

Stakeholder selection

We distinguish the following groups of stakeholders: customers (both retail and commercial), shareholders, municipalities / local residents, investors, capital providers, employees / works council and environmental organisations / NGOs. This selection is based on our analysis that they have the biggest influence on our strategy and business operations and experience the largest impact of our activities and choices that we make for the future.

Materiality analysis

For this report, we made an inventory of what is considered relevant by our stakeholders. We aim to make this stakeholder dialogue a structural part of our governance. That is to say that the topic of materiality will be a regular agenda item in customer panels, meetings with commercial customers, consultations with shareholders, and the Works Council and in regular meetings with rating agencies and NGOs.

A table is included in the section below with an explanation of the materiality of the relevant topics that form part of the scope of this annual report. In this overview, we also show where the impact of a topic lies both within and outside the organisation. In the chapter Progress, we discuss in detail the concrete objectives that we have formulated for the relevant topics via targets for the specified KPIs. In this chapter, we also discuss what we have already done and what we plan to do to realise our objectives. In addition, we included an overview of the specifically selected GRI indicators in the GRI index. In this section, we have made the relationship between the material topics and the strategic KPIs visible. This section also includes an overview that illustrates the relationship between the material topics, strategic KPIs and strategic risks.

Reporting process

We evaluated the manner in which the contents of the annual report were determined in the past and we concluded that this did not take place sufficiently structured and efficiently. Improvement possibilities were taken to heart in the preparation of the annual report 2017. Point of departure in these preparations was the strategy including strategic themes and key performance indicators (KPIs) as determined by the Board of Management. The contents of the annual report is determined based on the materiality analysis described above. We have made agreements with regard to the reporting process. The responsibility, definition, scope, calculations, necessary resources and systems, quality assurance and the process are determined for each strategic KPI that is linked to a strategic theme. The development of each strategic KPI is reported periodically and discussed with the boards of the Eneco entities involved. Where necessary remedial action is taken.

Strategic KPIs

We use the following definitions for the strategic KPIs:

  • CO2 emissions by Eneco Group, its suppliers and customers (in Mton CO2eq): the absolute CO2 emissions and other greenhouse gases are calculated based on the ‘Greenhouse Gas Protocol the Corporate Value Chain (Scope 3) Accounting and Reporting Standard’. The absolute CO2 emissions of our business operations, our suppliers and our customers in 2017 is compared with the absolute CO2 emissions in the base year 2015, from which the reduction percentage follows.
  • Number of customer contracts: is based on the number of (unique) contracts for which Eneco is the supplier of single electricity, gas, heating, rental, service and maintenance and Toon.
  • Customer satisfaction after customer contact: the degree in which customers are satisfied about the (telephone) contact and the services provided by Eneco Consumers, as measured based on questionnaires completed by customers and reflected in a score from 1 to 10.
  • Internal alignment: the degree in which employees are aligned with the universal values and thus indirectly with the mission and cultural values of Eneco Group, measured by an external research agency and reflected in a score from 1 to 100.
  • Performance dialogue score: the degree in which managers and employees discuss performance and behaviour, as measured by an external research agency and reflected in a score from 1 to 100.
  • Recordable Incident Frequency: the ratio of the number of work-related accidents to the actual productive hours multiplied by 200,000 during a year.
  • Return on Capital Employed (in %) the operating profit (EBIT) after deduction of tax, divided by the average capital employed, corrected for 2016 positions with the grid operating company Stedin prior to the unbundling.
Information gathering and accountability

The Board of Management is responsible for the integrated annual report. The Board of Management has delegated the preparation of the annual report to a process manager who leads a multidisciplinary team. The responsibility for the contents of the report is divided between the departments Strategy, Communication and Finance & Risk. The financial and non-financial strategic KPIs are an integral part of the planning and control cycle. The results are discussed in the regular business reviews. A responsible officer is appointed for each topic based on an accountability index. The Board of Management reviews the final version before it is submitted to the Supervisory Board.

Sustainable Development Goals (SDGs)

We report on the Sustainable Development Goals (SDGs) of the United Nations that are relevant for us. These goals were drawn up in order to make the world ‘a better place’ by 2030. Eneco Group contributes to the realisation of these goals on a modest scale. In the paragraph reference tables Sustainable Development Goals, we provide insight into this with a reference to the relevant notes in the annual report.

Climate Disclosure Standards Board (CDSB)

The reported environmental informations corresponds to a large extent with the CDSB framework. This framework promotes the disclosure of environmental information and natural capital.

Assurance non-financial information

We requested Deloitte Accountants to audit the strategic KPIs and the application of the specific GRI Standards 102 and 103 (version 2016) in addition to the audit of the financial statements.

Materiality and impact

The material topics, that we report on in this annual report, have both an internal and an external impact. We link the material themes to strategic KPIs with which we aim to make our progress visible.

Below, we provide an overview of the internal and external impact in as far as we measure this centrally. For example, for the strategic KPI Customer Satisfaction, we currently only measure in the Netherlands. We only show here in which of the countries where Eneco operates the material aspects concerned are applicable and which stakeholders are impacted by this (external impact). It is also specified in which phase in the supply chain a topic is relevant and at which business entities of Eneco (internal impact). We refer to the Profile and the Overview of main subsidiaries, joint operations, joint ventures and associates (page #) for an overview of the business entities of Eneco Group. Major acquisitions (such as Eni Belgium, the wind activities of De Wolff Verenigde Bedrijven and the 50% interest in LichtBlick this year) are not included in the non-financial strategic KPIs and the GRI application until the year following the year in which the acquisition took place.

Our chain comprises purchasing, production and delivery (within the organisation) and use (outside the organisation).

Living within the limits of the planet

Eneco Group aims to bring the CO2 emissions of its customers and its own emissions within the limit of one planet.

Where

Procurement

Production

Delivery

Use

NL, B, UK, G

v

v

v

v

Main stakeholders

Scope

KPI

Customers retail and commercial, local residents and cooperatives, nature and environmental organisations

Eneco Group*

1. CO2 emissions by Eneco Group, its suppliers and customers (in Mton CO2eq)

Customers participate in the energy transition

Eneco Group has, making use of its role as system player, relevant products in the growth domains, therefore customers purchase more from Eneco than only a commodity.

Where

Procurement

Production

Delivery

Use

NL + B

-

-

v

v

Main stakeholders

Scope

KPI

Customers retail and commercial, local residents and cooperatives,

nature and environmental organisations

Eneco Group*

2. Number of customer contracts

Relevant for the customer

Eneco Group is viewed by its customers as a credible partner in the sustainability process

Where

Procurement

Production

Delivery

Use

NL

-

-

v

v

Main stakeholders

Scope

KPI

Customers retail and commercial

Consumers

Eneco label

3. Customer satisfaction Eneco after customer contact

Employee engagement

Employees of Eneco Group are familiar with and support the strategy and show the desired behaviour

Where

Procurement

Production

Delivery

Use

NL, B, UK

v

v

v

v

Main stakeholders

Scope

KPI

Employees

Eneco Group*

4. Internal alignment score

5. Performance dialogue score

6. Recordable Incident Frequency

A healthy financial return

Eneco Group realises a healthy return for its shareholders

Where

Procurement

Production

Delivery

Use

NL, B, UK, G, FR

v

v

v

v

Main stakeholders

Scope

KPI

Shareholders, capital providers and investors, employees

Eneco Group

7. Return on Capital Employed (ROCE)

*) Excluding large acquisitions 2017

Reference tables

GRI content index

General disclosures GRI Standards 102

Standard

Description

Explanation

Reference

Strategy and analysis

102-14

Statement from senior decision-maker

Foreword Board of Management

Organisation profile

102-1

Name of the organisation

Eneco Groep N.V.

Profile

102-2

Activities, brands, products and services

Profile

102-3

Location of headquarters

Rotterdam

Colophon

102-4

Location of operations

Profile

102-5

Ownership and legal form

Accounting principles - General information

Corporate Governance

Financial Statements

102-6

Markets served

Profile

102-7

Scale of the organisation

Financial key figures

Personnel

Growth in sustainable production and capacity

102-8

Information on employees and other workers

Personnel

102-9

Supply chain

Increasing the sustainability of our chains

102-10

Significant changes to the organisation and its supply chain

Unbundling of the former Eneco Holding N.V. as of 31 January 2017 in the energy company Eneco Group and the grid operator Stedin.

Acquisition of a 50% interest in the German sustainable energy company LichtBlick.

Acquisition of Eni Belgium.

About this report

Important events

102-11

Precautionary principle of approach

Risk management

Safety & Security

102-12

External initiatives

Eneco Group is active abroad, also in developing countries. We comply with the local laws and regulations. These regulations sometimes offer less suitable protection than international law, for example, with regard to child labour, slavery or other elementary working conditions. In that case, we apply the international standards laid down in the Universal Declaration of Human Rights.

Eneco is one of the signatories of the Dutch Energy Agreement for sustainable development.

Suppliers code of conduct

Sustainable Development Goals

CDSB framework

Science Based Targets initiative

CDP Climate Change

EcoVadis

102-13

Membership of associations

Our memberships include Nederlandse Vereniging Duurzame Energie, MVO Nederland, Nederlandse Wind Energie Associatie, De Brede Stroomversnelling, DE Unie, UNETO/VNI, Energie Nederland and Eurelectric.

102-16

Values, principles, standards and norms of behaviour

Code of conduct

Integrity and compliance

Suppliers code of conduct

Governance

102-18

Governance structure

Corporate Governance

Foreword Board of Management

Supervisory Board Report

Stakeholder engagement

102-40

List of stakeholder groups

Stakeholders and materiality

Dialogue with stakeholders

Shareholders

102-41

Collective labour agreements (CLAs)

Personnel

102-42

Identifying and selecting stakeholders

Reporting policy

102-43

Approach to stakeholder engagement

Stakeholders and materiality

Dialogue with stakeholders

102-44

Key topics and concerns raised

Dialogue with stakeholders

Reporting principles

102-45

Entities included in the consolidated financial statements

Overview of the main subsidiaries, joint operations, joint ventures and associates

Materiality and impact

102-46

Defining report content and topic boundaries

Reporting policy

102-47

List of material topics

Materiality and impact

102-48

Restatements of information

Materiality and impact

About this report

102-49

Changes in reporting

The scope of the strategic KPIs was adjusted to changes in the organisation and to new KPIs

Materiality and impact

102-50

Reporting period

1 January 2017 - 31 December 2017

About this report

102-51

Date of most recent report

30 January 2017 regarding reporting year 2016

102-52

Reporting cycle

Calendar year

About this report

102-53

Contact point for questions regarding the report

Feedback button on every page of the online annual report. The annual report can also be downloaded here as PDF. The contact information is provided in the PDF in the colophon.

102-54

Claims of reporting in accordance with the GRI Standards

Reasonable degree of assurance on the strategic KPIs and the application of specific GRI Standards 102 and 103 (version 2016)

About this report

Reporting policy

102-55

GRI index

GRI content index

Assurance

102-56

External assurance

Other information

Reporting policy

Management approach per material theme GRI Standards 103

Material theme

GRI Standard

Reference

1. Living within the limits of the planet

103-1

Focusing on impact

Stakeholders and materiality

Materiality and impact

103-2

Focusing on impact

Vision, mission and strategy

Risk management

Corporate Governance

Reporting policy

103-3

One Planet results

Client Sources

Energy as a Service

Smart Sustainable Solutions

What others say about our sustainable performance

2. Customers participate in the energy transition

103-1

Focusing on impact

Stakeholders and materiality

Materiality and impact

103-2

Focusing on impact

Vision, mission and strategy

Risk management

Corporate Governance

Reporting policy

103-3

Client Sources

Energy as a Service

3. Relevant for the customer

103-1

Focusing on impact

Stakeholders and materiality

Materiality and impact

103-2

Focusing on impact

Vision, mission and strategy

Risk management

Integrity and compliance

Corporate Governance

Reporting policy

103-3

Energy as a Service

4. Employee engagement

103-1

Focusing on impact

Stakeholders and materiality

Materiality and impact

103-2

Focusing on impact

Vision, mission and strategy

Risk management

Corporate Governance

Reporting policy

103-3

Employee engagement

5. Healthy financial return

103-1

Focusing on impact

Stakeholders and materiality

Materiality and impact

103-2

Focusing on impact

Vision, mission and strategy

Risk management

Corporate Governance

Reporting policy

103-3

Financial result

Other disclosures

Category

Definition based on own interpretation

Reference

Economic

Direct economic value

Financial result

Financial Statements

Scale of the organisation: number of customer contracts

Convenience for consumers

Approach to stakeholder engagement: customer satisfaction

Convenience for consumers

Environment

Emissions: CO2 emissions by Eneco Group, its suppliers and customers (in Mton CO2eq)

Note:

We express our footprint in CO2 emissions for which we have converted the emissions of CH4 and N2O into CO2.

One Planet results

See for the calculation:

the One Planet explanation on our website

Social

Employee engagement

Putting people first

Safety of employees.

Note:

  • We report the RIF (Recordable Incident Frequency) which consists of FAT (Fatality) + LTI (Lost Time Injury) + RWC (Restricted Work Case) + MTC (Medical Treatment Case) multiplied by 200,000 hours divided by the number of FTEs multiplied by 1,560.
  • The reported RIF does not include employees from temporary employment agencies and the employees of contractors.
  • The absenteeism figure of our own employees is included in Personnel. We measure absenteeism as of the first day after an incident.
  • We have a safety management system and an incident reporting system Alerta. We also record the type of incidents in this system.
  • We register per country in which we are active, not per gender, because we do not consider this relevant information.

Safety & security, Personnel (absenteeism)

CDSB framework

Eneco Group has prepared the annual report in accordance with the principles of the Climate Disclosure Standards Board (CDSB).

CDSB principles
  • P1 Environmental information shall be prepared applying the principles of relevance and materiality: Is also GRI and IIRC principle
  • P2 Disclosures shall be faithfully represented - is also GRI and IIRC principle
  • P3 Disclosures shall be connected with other information in the mainstream report - is IIRC principle We prepare an integrated report in particular to ensure and show this connectedness (see the various tables)
  • P4 Disclosures shall be consistent and comparable - is also GRI and IIRC principle
  • P5 Disclosures shall be clear and understandable - is also GRI and IIRC principle
  • P6 Disclosures shall be verifiable - Deloitte provides assurance on the GRI application
  • P7 Disclosures shall be forward looking - is IIRC principle. See Foreword Board of Management, Vision, mission and strategy.
Reporting requirements

REQ-01

Management's environmental policies, strategy and targets

The disclosures state the management's environmental policy and the environmental strategy and targets, including the indicators, plans and time lines for the assessment of the performance.

GRI standard Management approach

One Planet

REQ-02 Risks and opportunities

The disclosures provide and explanation about existing and anticipated risk and opportunities of material importance in the area of the environment that effect the organisation.

GRI standard 102-11 risk management

REQ-03 Governance

The disclosures describe how the governance of the environmental policy and the environmental strategy and information is structured.

GRI standard 102-14 en 18 Foreword and Governance roles

More information in Reporting policy

REQ-04 Sources of environmental impacts

The description of the quantitative and qualitative results and the methods used for this describe the important sources of environmental effects.

One Planet calculations on our website

REQ-05 Performance and comparative analysis

The disclosures contain an analysis in which the REQ-04 information provided is compared with performance goals and with results reported in earlier periods.

One Planet calculations on our website

REQ-06 Outlook

In a concise manner, the management will present its conclusions regarding the impact of environmental effects, risks and opportunities on the organisation's future performance and position.

GRI 102-14 Foreword Board of Management strategy chapter

REQ-07 Organisational boundary

Environmental information will be prepared for the entities that fall within the boundaries of the organisation or group to which the regular report applies, which, insofar as applicable, will be separated from information about entities that fall outside these boundaries.

Management approach One planet. See table Materiality and impact in the annex

REQ-08 Reporting policies

The disclosures state the reporting principles that were applied when preparing environmental information and (with the exception of the first reporting year) it will be confirmed that these reporting principles are applied consistently from reporting period to reporting period.

REQ-09 Reporting period

Disclosures will be provided on an annual basis.

GRI 102-50 calendar year 2017

REQ-10 Restatements

The disclosures will provide information on restatements of information pertaining to previous periods.

GRI 102-49

REQ-11 Conformance

The disclosures contain a statement regarding conformity with the CDSB framework.

Reporting policy

REQ-12 Assurance

If assurance has been provided regarding the question whether the reported environmental information is in conformity with the CDSB framework, then this is stated as reference in the Conformance statement referred to in REQ-11.

Reporting policy

Sustainable Development Goals

The United Nations’ Sustainable Development Goals (SDGs) were drawn up to make the world ‘a better place by 2030’. Eneco Group contributes to the realisation of these goals on a modest scale. The overview below provides insight into this with a reference to the relevant disclosures in the annual report.

SDG

Relevant SDG indicators

Relevance Eneco Group

Our goals and results

7.1 By 2030, ensure universal access to affordable, reliable and modern energy services.

7.2. By 2030, increase substantially the share of renewable energy in the global energy mix.

7.3 By 2030, double the global rate of improvement in energy efficiency.

Our mission is 'Everyone's sustainable energy’. We aim for renewable generation of energy and optimal energy efficiency.

Share of sustainable electricity in total delivery.

8.5 By 2030 achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

8.8 Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, particularly woman migrants, and those in precarious employment.

Balanced teams help us to fulfil our mission and to connect as broadly as possible with our customers and our environment.

Many of our employees carry out work on the energy infrastructure, a working environment with relatively many risks. Their safety and the safety of customers and citizens is our priority. This is why we invest in knowledge and expertise and we work on a proactive ‘safety culture’.

Aiming for diversity

Safety has priority within Eneco Group every year again.

Recordable Incident Frequency (RIF) target of 0.96 for the Eneco Group.

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, all countries taking action in accordance with their respective capabilities.

Our efforts are aimed at limiting global warming to well under two degrees Celsius and continuing to focus on increasing the sustainability of our energy.

Innovation is essential in our transformation from energy supplier to energy partner.

From energy supplier to energy partner. This is why we are examining new solutions and business models together with our customers and partners. Which new technologies can we use to replace conventional energy and how will this effect our delivery of energy in the future? See Client Sources, Smart Sustainable Solutions

11.6 By 2030, reduce the adverse per capital environmental impact of cities, including by paying special attention to air quality, and municipal and other waste management.

Eneco Group is a part of society and is aware that breathing polluted air increases the probability of serious diseases. Although emissions of our power plants and means of transport only make a small contribution to the total, they are part of the problem and we wish to contribute to the solution.

Clean air (in accordance with guidelines World Health Organisation)

See Growth in sustainable production and capacity

Sustainable mobility

13.2 Integrate climate change measures into national policies, strategies and planning.

13.3 Improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.

The climate footprint of Eneco Group, our suppliers and our customers combined represents about 5 to 10% of all greenhouse gas emissions in the Netherlands. This as an indication of the size, knowing that emissions do not only take place in the Netherlands.

More and more people are concerned about the liveability of our planet. They are already assuming their own responsibility in this. Energy is an important issue for them.

Living within the limits of our planet Worldwide climate agreements were made in Paris in 2015 to keep global warming well below 2°C, while aiming for 1.5°C. These agreements have been translated to our business operations, including our suppliers and customers, using the Science Based Target initiative (SBTi) (http://sciencebasedtargets.org/).

This contributes to lower emissions and reflects that which we have the most influence on.

See Client Sources,

Growth in sustainable production and capacity

Sustainable mobility

We believe in everyone's sustainable energy. Through education and sharing knowledge, we show a broad audience how to do this.

Sponsoring

https://www.enecogroep.nl/wat-we-doen/in-de-praktijk/sponsoring/

15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species.

Eneco Group is part of society and is aware that biodiversity is being seriously reduced due to human actions. Although emissions of our power plants and means of transport only make a small contribution to the total, they are part of the problem and we wish to contribute to the solution.

It is part of our One Planet ambition to treat nature and biodiversity with respect and to ensure that our activities do not result in a loss of biodiversity (No Net Loss). We are examining whether No Net Loss in 2020 is realisable for new projects.

See Biodiversity

17.14 Enhance policy coherence for sustainable development.

17.17 Encourage and promote effective public, public-private and civil society partnerships, building on experience and resourcing strategies of partnerships.

17.19 By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement GDP, and support statistical capacity-building in developing countries.

We only have one planet. At present, worldwide, we consume 1.6 times as much as our planet can support. More and more people are becoming concerned about our planet.

They are becoming increasingly aware of how we live, what we eat and how we impact the planet.

Worldwide, we are being confronted with climate change and the increasing scarcity of natural resources. People want to do something and contribute to keeping our planet liveable.

We are convinced that everyone can take energy and sustainability into their own hands. Therefore, also the energy transition and the speed at which this takes place.

Our aim is to get the energy requirement in our chain within the limits of a liveable planet.

Not only for ourselves, but also for generations to come.

See One planet

One Planet results

Client Sources,

Suppliers Code of Conduct

Declaration of compliance with Suppliers Code of Conduct

regarding data from low-volume meters that can be read remotely.
Name of legal entities:

Eneco Consumenten B.V. and Eneco Zakelijk B.V., hereafter jointly referred to as Eneco, and Oxxio Nederland B.V. and CEN B.V., hereafter jointly referred to as Oxxio.

Registered offices:

Rotterdam (Eneco) and Hilversum(Oxxio).

Period:

01 January 2017 up to and including 31 December 2017

Eneco and Oxxio make use of meter data obtained from low-volume meters that can be read remotely in order to carry out their services properly. As a supplement to the Personal Data Protection Act, suppliers and meter reading companies acting under their responsibility in the Dutch energy sector have drafted a code of conduct regarding the use, recording, exchange and storing of data obtained from low-volume meters that can be read remotely.

Eneco B.V. hereby states, duly represented in this matter by its director F.C.W. (Frans) van de Noort, in its capacity as director of Eneco Consumenten Nederland B.V., who in turn is the director of Eneco Consumenten B.V., Oxxio Nederland B.V. and CEN B.V., as well as in its capacity as director of Eneco Zakelijk Nederland B.V., who in turn is the director of Eneco Zakelijk B.V., that Eneco, with the exception of that which is stated below, and Oxxio have complied with the rules and obligations laid down in the Suppliers of Smart Meters Code of Conduct 2012 during the above-mentioned period.

In this period, is was observed that Eneco Consumenten B.V. gave customers more insight through an insight service than was actually permitted based on the customer mandate. Upon discovery, the necessary measures were taken so that this situation was ended as of 17 May 2017.

Rotterdam, 2 February 2018

F.C.W. (Frans) van de Noort,

Member of the Board of Management of Eneco Groep N.V.