sustainability report 2014
Transcription
sustainability report 2014
SUSTAINABILITY REPORT 2014 CREATING VALUE FOR OUR REGION EWE SUSTAINABILITY REPORT 2014 THE MAGNIFYING GLASS indicates more detailed information on the subject GEO PIN indicates the locations of introductions to sections and subjects GRI INDICATORS AND EWE PROGRESS CRITERIA >> G4-XX and >> EWE-FKXX refer to reported GRI indicators or to our EWE progress criteria. A detailed overview is available in the GRI Index from p. 82 onwards. The hook þ indicates the start and end of information in the text that is subject to review by auditors (p. 92). 1 CONTENTS CONTENTS FOREWORD 8 COMPANY PROFILE 10 SUSTAINABILITY – PART OF OUR GROUP STRATEGY 15 OUR AREAS OF ACTION 23 Security of supply and network stability 24 Innovation and product responsibility 29 Climate protection and generation 34 Environmental management and resource efficiency 40 Regional responsibility 44 Supply chain 50 Market and transparency 54 Health and occupational safety 58 Employees and education 63 Data protection and information security 68 ABOUT THIS REPORT 72 FACTS AND FIGURES 74 Appendix of indicators 75 GRI Index 82 Glossary 90 Independent auditor’s report 92 CONTACT AND PUBLICATION DETAILS 94 EWE SUSTAINABILITY REPORT 2014 We believe that acting responsibly is a basis for long-term corporate success. Our sustainability strategy defines specific targets in ten areas of action that we want to achieve by 2020. This enables us to systematically pool and strengthen our activities. This report is our first comprehensive overview of what we mean by sustainability and regional responsibility – and how we put them into practice. 2 3 Providing high-speed internet to rural areas with low population density is a challenge. EWE is working together with the people to tackle this challenge and establish modern infrastructure even outside urban centres. More information about our area of action SECURITY OF SUPPLY AND NETWORK STABILITY is available from page 24 onwards. More and more members of the public are taking an active role in the energy turnaround. And EWE is giving them a helping hand. The EQOO domestic storage system helps them get the most out of the solar power that they generate themselves. More information about our area of action INNOVATION AND PRODUCT RESPONSIBILITY is available from page 29 onwards. 4 After just 14 months of construction, Riffgat now generates energy for around 120,000 homes. EWE has shown that it is possible to construct offshore wind farms quickly without compromising the environment or cost efficiency. EWE makes its expertise in planning, construction and operation available to other companies. More information about our area of action CLIMATE PROTECTION AND GENERATION is available from page 34 onwards. EWE wants to consistently decrease how much energy it uses over the coming years. The headquarters for the Turkish subsidiaries Bursagaz and Enervis will use highly efficient building technology in accordance with the international LEED sustainability standard. More information about our area of action ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY is available from page 40 onwards. 5 What does the future of energy look like? That’s a question that utility companies can’t answer without the help of citizens. Under the motto “The North Gets It Done”, EWE’s 2014 Energy Turnaround Forum gave the people of the region an opportunity to present and discuss their ideas, and to develop them until they are ready to implement. More information about our area of action REGIONAL RESPONSIBILITY is available from page 44 onwards. EWE wants long-term partnerships with its suppliers. One such supplier is cable manufacturer Waskönig+Walter. Quality, adherence to delivery time-scales, and environmentally friendly production processes have fostered a relationship of trust between EWE and this Saterland-based family company. More information about our area of action SUPPLY CHAIN is available from page 50 onwards. 6 Reliability is the foundation for any long-term customer relationship. That’s why EWE wants its three customer advisory boards in Weser-Ems, Weser-Elbe and Brandenburg to show what private customers want from their energy provider. The customer advisory boards also help EWE to inform citizens about the complexities of the energy world. More information about our area of action MARKET AND TRANSPARENCY is available from page 54 onwards. Occupational health and safety is extremely important to EWE – a commitment to safety measures, daily checks, training and proactive risk mitigation prevented serious accidents during the construction of the gas and steam turbine power plant in Bremen-Mittelsbüren. More information about our area of action HEALTH AND OCCUPATIONAL SAFETY is available from page 58 onwards. 7 95 young adults from all of the EWE regions live and work on the EnergieCampus in Oldenburg. EWE uses the EnergieCampus for training workshops, and doesn’t leave residents to their own devices after work. Mentors support EWE apprentices on-site and help them to organise their free time. More information about our area of action EMPLOYEES AND EDUCATION is available from page 63 onwards. EWE stores its customers’ information in Oldenburg. Security at the two regional data centres is tight, with extensive measures taken to protect images, emails, account transactions and trade secrets of individuals and businesses against hackers, theft and fire. These data centres are also subject to Germany’s strict data protection laws. More information about our area of action DATA PROTECTION AND INFORMATION SECURITY is available from page 68 onwards. 8 EWE SUSTAINABILITY REPORT 2014 DEAR LADIES AND GENTLEMEN, FRIENDS OF THE COMPANY, The European energy industry is in upheaval, and EWE is also That’s why we are committed to reducing our CO2 emissions undergoing some major changes. Why, in times of constant per generated kilowatt hour by 40 per cent by 2020, com- change, is it now right to set ourselves up systematically pared to 2005 levels. In 2014, we brought the first commer- for a sustainable future? The answer lies in how we see our- cial offshore wind farm in the German North Sea online, with selves – as a predominantly municipally-owned company, Riffgat providing electricity to 120,000 homes. sustainability means acting reliably, responsibly and with a view to the long term – for our regions, for the people who live there, and for the environment. The only way to deal with key challenges like climate protection is hand in hand with our customers, employees, shareholders and other partners. And we firmly believe that the only way to achieve long-term economic success is by taking ecological and social developments into account in the course of our commercial dealings. We were quick to integrate energy, telecommunications and information technology, as these are the key areas of expertise required for sustainable energy supply. For decades now, we have also been committed to education and science, for social projects, culture and sport. We are a regular part of the social life in our regions of Ems/Weser/Elbe, Branden- “We firmly believe that the only way to achieve long-term economic success is by taking ecological and social developments into account in the course of commercial dealings.” burg and Rügen, as well as parts of Poland and Turkey. The swb group of companies, which is part of the EWE Group, has been responsible for establishing modern energy supply in the state of Bremen for 160 years. We are investing in modern infrastructure and are conducting practical research into “smart grids” in order to keep our We adopted a sustainability strategy in 2014 to combine our networks stable, despite the fluctuating amounts of elec- existing activities and launch new ones. We have set our- tricity being fed into the network from renewable energies. selves specific targets in ten areas of action, which we want Our electricity network is one of the most reliable in Germa- to achieve by 2020, and which we will use from now on to ny, and we want to keep our network downtime below the gauge our performance. “Creating Value for our Region”, our national average in future, too. first sustainability report, is our outlet for presenting our strategy. We want to keep you informed about where we are In order to discover potential energy savings within the com- and where we’re going. pany and to reduce our own consumption, we will introduce energy management systems in twelve of our companies and establish a Group-wide energy monitoring system by 2020. We are also incorporating business partners outside of our 9 FOREWORD BOARD OF MANAGEMENT OF company into our sustainability management system. As part EWE AG of this process, we have drawn up a code of conduct, and we plan for 95 per cent of our strategic suppliers to sign up to it by 2020. A study published by the CONOSCOPE research institute in Dr. Werner Brinker Chief Executive Officer 2014 showed that we are already a significant regional economic force. Around half of every euro spent by EWE stays in the region. Our capital expenditure and the purchases made by our employees provide around 17,000 additional jobs in our regions. Our sustainability strategy is a roadmap for how we can continue to contribute to the development of our Matthias Brückmann Deputy Chief Executive Officer, Sales regions. We are overcoming both this challenge and others by making sustainability an integral part of our core business. We have established a Group-wide sustainability management system that we will expand in the coming years. Our employees help us every day to achieve the goals we have set ourselves. Nikolaus Behr Member of the Board of Management, Human Resources It is important for us to make our progress measurable and comparable. That’s why we have prepared our report in accordance with the Global Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines. An independent auditor has performed an audit of the report and has raised no objections in this connection. Ines Kolmsee Member of the Board of Management, Technology Dear reader, we are delighted to present the first EWE sustainability report, and we hope that you will find it informative. >> G4-01 Dr. Heiko Sanders Member of the Board of Management, Finance June 2015 Board of Management 10 EWE SUSTAINABILITY REPORT 2014 COMPANY PROFILE 11 COMPANY PROFILE BUSINESS MODEL With energy, telecommunications and information technology (IT), EWE combines the key expertise needed for a modern A PIONEER energy supply. With more than 9,000 employees and sales IN SUSTAINABLE ENERGY SUPPLY in excess of EUR 8 billion, the Group is one of the largest municipally-owned companies in Germany. EWE does business in the Bremen, Brandenburg, Rügen and Ems/Weser/ Elbe regions, as well as parts of Turkey and Poland >> G4-06. +One of the world’s first commercial wind turbine operators in the 1980s þ EWE provides electricity to just under 1.3 million customers and natural gas to 1.7 million. It also provides tele- +Leading member of the consortium involved in communication services to around 700,000 customers1 >> building Germany’s first offshore wind farm, alpha þ G4-EU03. The Group can generate its own energy from ventus renewable and conventional sources, and operates secure energy and telecommunication networks. Its subsidiary BTC provides IT products and services. EWE considers itself a network infrastructure expert and a pioneer in the field of renewable energies. The company’s +Riffgat – the first commercial offshore wind farm in the German North Sea +Research and field tests investigating the use of fuel cells in domestic energy supply since 1998 strategy is completely focused on the German energy turnaround. By combining energy, telecommunications and IT, EWE has the expertise needed for intelligent energy systems +Developed the E3 electric car in 2009 as a test platform for modern storage technologies >> G4-08. The energy supply of the future requires a new mindset – energy needs are rising and our fossil fuels are limited. We also have to reduce greenhouse gas emissions +Large-scale field test in Cuxhaven investigating decentralised energy management (eTelligence) to counteract climate change. To do this, we need to strike an intelligent balance between energy conservation, e nergy efficiency and expanding the use of renewable energy +Field test for first intelligent local network stations running since 2013 sources. This requires closely knit systems that are able to flexibly and efficiently provide electricity and heat. +Around 75 per cent of the electricity transported in the EWE network already comes from renewable energies 1 — Including customers of htp GmbH 12 EWE SUSTAINABILITY REPORT 2014 CORPORATE STRUCTURE +The Infrastructure business area encompasses the electricity grid, natural gas grid and telecommunications EWE AG is based in Oldenburg, Germany >> G4-03, G4-05. networks, as well as drinking water/wastewater. As the Group’s holding company, it manages the Group companies and their activities. Most of the company is owned by +The Sales and Trading business area includes the local government, which holds a 74 per cent stake in EWE energy and telecommunications sales entities and the AG. The shares are held by 21 cities and communities in the Group’s energy trading business. Ems/Weser/Elbe region. 26 per cent of the shares are held by EnBW Energie Baden-Württemberg AG >> G4-07. +The Foreign Business and IT business area, which brings together the business activities in Turkey and As a capital market-oriented public limited company Poland as well as the Information Technology division. (Aktiengesellschaft), EWE is subject to the German Stock Corporation Act. The Group is led by a Board of Management which is solely responsible for managing the Group’s PRODUCTS AND SERVICES transactions and developing its strategic direction. It takes action in agreement with the Supervisory Board. The Board EWE offers its customers energy, telecommunications and of Management provides the Supervisory Board with regular IT products and services from a single provider. In addi- information about the company’s course of business, strat- tion to electricity, gas, telephone and internet services, it egy and potential opportunities and risks. The Supervisory also provides its customers with innovative combinations Board monitors the activities of the Board of Management. which bring all three areas together. One example is the In accordance with the German Codetermination Act, (Mit solar-powered EQOO domestic storage system, which bestimmungsrecht), the Supervisory Board has an equal EWE launched in 2014 to respond to widespread customer number of shareholder representatives and employee repre- demand for self-sufficiency. Households can use EQOO to sentatives >> G4-34. generate up to 70 per cent of their electricity from their own solar panels. > p. 29, Innovation and product responsibility The EWE Group is separated into the following business areas: +The Central Divisions/Consolidation business area mainly comprises EWE AG as the holding company and other associated companies like swb AG and VNG Verbundnetz Gas Aktiengesellschaft. +The Generation business area contains the Renewable Energies, Conventional Generation, Waste Disposal and Gas Storage business units. 13 COMPANY PROFILE GROUP KEY FIGURES þ 2014 2013 Change in % 8,134.2 8,862.6 -8.2 847.1 983.2 -13.8 Operating EBIT 425.4 497.9 -14.6 EBIT 357.7 410.9 -12.9 Result for the period 146.3 57.2 155.8 Cash outflows for capital expenditure (total) 721.3 573.5 25.8 Cash flow from operating activities 770.3 406.4 89.5 Balance sheet total 9,800.9 10,370.4 -5.5 Shareholders’ equity 2,285.2 2,395.7 -4.6 23.3 23.1 0.9 9,154 9,163 -0.1 EUR million Sales Operating EBITDA Equity ratio in % Employees (Ø) þ G4-09 > Please refer to the 2014 annual report of EWE AG for further key figures 14 EWE SUSTAINABILITY REPORT 2014 EWE also provides procurement, marketing and balancing RISK MANAGEMENT group management services for electricity and gas through its Energy Trading division. For example, EWE trades CO2 The purpose of the Precautionary Principle, which was adopt- certificates on behalf of customers and is a leading p rovider ed by the United Nations, is to prevent harm to the environ- of direct marketing services for electricity from facilities ment. Monitoring environmental risks is also important for governed by the Renewable Energy Act (EEG). EWE. Its subsidiary swb, for example, uses environmental management systems in swb Erzeugung GmbH & Co. KG The Telecommunications division provides a full complement (swb Erzeugung) and swb Entsorgung GmbH & Co. KG (swb of modern services for private and business customers on the Entsorgung), among other areas >> G4-14. basis of the Group’s infrastructure in parts of EWE’s regions. These range from landline and mobile telephone services to In addition to addressing environmental risks, EWE also deals internet connections and TV products to cloud services. It with the consequences of danger scenarios, which could for also provides data centre services and tailored service pack- example arise as a result of sudden natural disasters. EWE ages for business customers. NETZ GmbH (EWE NETZ) has defined every business process which would put the company and therefore the security of EWE provides consulting, system integration as well as supply at risk in a crisis. The company then drew up specific application and system management services through its IT measures and plans which would be implemented in these division. Innovative energy software products are a key part situations. of its product portfolio. These include solutions and innovations related to smart metering and smart grids >> G4-04. EWE has established an integrated risk and opportunity management system for the Group to detect and address potential risks and opportunities arising from its activities. This system is used to analyse risks and opportunities on a regular basis. The Group’s Board of Management and supervisory bodies are informed of the results of these analyses on a quarterly basis. > Please refer to p. 66 of the 2014 annual report for further information SUSTAINABILITY – PART OF OUR GROUP STRATEGY SUSTAINABILITY – PART OF OUR GROUP STRATEGY 15 16 EWE SUSTAINABILITY REPORT 2014 MAIN CHALLENGES electricity market, the obligation to use electricity from renewable energies is having a particularly strong impact on ENERGY TURNAROUND the market for conventional generation. In the light of global warming, one of the main challenges of DEMOGRAPHIC CHANGES the coming decades will be to gradually migrate the energy supply of Germany, an industrial nation, from a carbon-based Demographic changes are another significant challenge energy supply to one that is CO2 neutral. In spring 2011, the which will have a major impact on the German labour market German government responded to the nuclear disaster in in future. We want to establish ourselves as an attractive Fukushima, Japan by setting up the political framework for employer when competing for the best minds. The changes revamping its energy supply, dubbed the German energy to the age structure of our customer groups also come with turnaround. new requirements and expectations regarding services and products, and we are preparing for this early on. Germany’s rural areas will play an increasingly important role during this reform process. An above-average number of decentralised renewable generation plants are used in these OUR GROUP STRATEGY areas because of the amount of land available and due to the weather conditions. A significant amount of this potential is FOCUS ON THE ENERGY FUTURE already being exploited, particularly in the north-west, with the construction of wind turbines and the use of biomass EWE has long believed that creating a sustainable energy and photovoltaic p ower plants. The amount of electricity sector is the way forward. We already began investing in fed in from renewable energies is volatile. Despite this, it is renewable energies back in the 1980s. Because it takes smart, important to ensure that there is always enough electricity flexible network load management to use it to its full poten- available. This necessitates new solutions. We have to be tial, we have been building up key expertise for smart energy smarter and more flexible in how we coordinate the various systems through our Telecommunications and Information pathways involved in electricity generation, electricity con- Technology business areas and integrating it into our busi- sumption and the load flows in our networks. ness model since the 1990s. IMPACT OF THE ENERGY MARKET The majority of the EWE Group is municipally owned, and the Group is particularly aware of its responsibility to the Deregulated electricity and gas markets and the regulation environment and people in its regions – as an employer, a of network business have decreased the profitability of our partner to our suppliers, a service provider for our customers, company in its traditional core business. Pressure is growing and a neighbour. We want to remain a reliable partner for a on previously stable sources of income. This is exacerbated secure and economically viable energy supply in future. Our by the current situation on the gas market, which is a chal- strategy for achieving this is built on three main pillars: lenge to our storage marketing activities, for example. In the 17 SUSTAINABILITY – PART OF OUR GROUP STRATEGY Focus: With energy, telecommunications and information technology, we combine the core fields of expertise under one roof to provide a forward-looking system of energy supply. We focus here in particular on activities which repre- OUR PRIMARY OBJECTIVE sent a sustainable strategic and operational addition to our core business. Environmentally friendly energy and quality of life for local people Concentrated growth: We aim to achieve profitable growth with business activities, technologies and partnerships that enable us to actively participate in the transformation of OUR PROMISE energy supply in northern Germany. The emphasis is currently on renewable energies and the electricity networks. EWE is a municipal utility company with a responsibility to our region. We create We are also more positive about the Offshore business area sustainable value for our customers, than we were two years ago. Our experience with the Group’s employees and shareholders and are shaping two wind farms (Riffgat and alpha ventus) showed that off- the energy turnaround in partnership with shore wind energy is more profitable and less risky than people and companies from the regions. previously thought. We want to use the Group’s expertise to grow this area going forward. The biogas production and processing situation is quite different. EWE will be reducing VALUES OF THE EWE GROUP CULTURE its involvement in this area in future, partly due to the 2014 amendment to the Renewable Energy Act (EEG). Entrepreneurial Forward-thinking We have successfully expanded our market position in Turkey Responsible over recent years. The Group and its Turkish shareholdings Committed to partnerships have an excellent reputation among customers, business Efficient partners and political decision-makers. EWE will use this Varied foundation to selectively exploit growth potential among private customers and in the distribution network. EWE MANAGEMENT VALUES Passion for the customer Courage for change Responsibility for the outcome 18 EWE SUSTAINABILITY REPORT 2014 Sustainability and regional roots: We want to fulfil our OUR SUSTAINABILITY MANAGEMENT responsibilities to the regions and its people by sustainable entrepreneurship. That’s why we have set up a comprehen- EWE STAKEHOLDERS sive sustainability management system for the EWE Group, on which we will be reporting on a regular basis in future. EWE has drawn up a sustainability strategy with ten areas of We want to be judged on the basis of the targets and per- action to make sustainability an integral part of the Group’s formance figures that we include in these reports. We use philosophy. These areas of action cover economic, ecological our traditional links with the regions and our many years of and social issues. þ Because our company is involved with a local experience to involve the regions and their people in the wide variety of internal and external shareholders, we took shaping of an environmentally friendly energy supply system. their needs into account when drawing up the strategy. PRINCIPLES AND GROUP CULTURE We started by using a multi-stage process to identify our main stakeholder groups. Customers, employees, sharehold- The basis of our success is our integrity in all business rela- ers, suppliers and NGOs have a particularly important part tionships. Because of this, we have set up a code of conduct to play in terms of our regional roots and have a significant for all of our employees to make compliance a key part of our impact on our company’s success >> þ G4-25. company. This code of conduct covers compliance with laws and directives, regulations, internal guidelines, contractual obligations and voluntary commitments. + þ EWE considers itself a customer-focused and service-oriented company with strong regional roots, which The EWE code of conduct was introduced in the German busi- is why customers are a major stakeholder group for EWE. ness regions at the end of 2012 and in the Polish business regions in 2014. The management of the Turkish companies + Employees play a major role in EWE’s success. Their per- have already approved the code of conduct and will imple- formance, loyalty and satisfaction are a vital part of the ment it in due course. > Further information from p. 54 onwards success of the company’s business operations. They are also involved in implementing the sustainability strategy. The approved management values and the Group culture provide a frame of reference alongside our code of conduct +EWE is predominantly owned by local government, which for our activities and decisions. Our employees come from an is why shareholders are an important stakeholder group extremely wide range of technical and cultural backgrounds. >> þ G4-24, þ G4-27. We need Group-wide values to use this variety constructively and pool our expertise in the best possible manner > See box p. 17; >> G4-56. 19 SUSTAINABILITY – PART OF OUR GROUP STRATEGY VERY HIGH MATERIALITY MATRIX ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY 6 HIGH CLIMATE PROTECTION AND GENERATION SUPPLY CHAIN HEALTH AND OCCUPATIONAL SAFETY REGIONAL RESPONSIBILITY EMPLOYEES AND EDUCATION SECURITY OF SUPPLY AND NETWORK STABILITY INNOVATION AND PRODUCT RESPONSIBILITY MARKET AND TRANSPARENCY 5 DATA PROTECTION AND INFORMATION SECURITY 4 MEDIUM IMPORTANCE FOR STAKEHOLDERS 7 4 MEDIUM 5 6 7 HIGH VERY HIGH IMPORTANCE FOR THE COMPANY OUR AREAS OF ACTION SECURITY OF SUPPLY AND NETWORK STABILITY — INNOVATION AND PRODUCT RESPONSIBILITY CLIMATE PROTECTION AND GENERATION — ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY REGIONAL RESPONSIBILITY — SUPPLY CHAIN — MARKET AND TRANSPARENCY — HEALTH AND OCCUPATIONAL SAFETY — EMPLOYEES AND EDUCATION — DATA PROTECTION AND INFORMATION SECURITY OUR SUSTAINABILITY STRATEGY > Our sustainability strategy, p. 21 20 EWE SUSTAINABILITY REPORT 2014 + þ We are committed to partnering with and supporting þ Our ten areas of action therefore comprise the main eco- our suppliers in order to provide transparent communi- nomic, ecological and social issues for the EWE Group. We cation about services and be effective in our organisa- have allocated a target for each area of action, along with tion relating to economic, ecological and social issues specific measures and initiatives. We also defined an im- throughout the value chain. provement criterion for each area so that our sustainability can be measured. We aim to use this to identify areas where + NGOs represent expectations about economic, e cological and social issues which are not widely represented in we can improve and to help us develop our sustainability strategy >> þ G4-27. society as a whole. Because these can result in areas of action for companies in future, it is important to recog- INTEGRATION IN THE GROUP nise these issues ahead of time >> þ G4-24, þ G4-27. The task of strategic management for these activities has been assigned to the Corporate Development holding function, MATERIALITY ANALYSIS AS A BASIS FOR THE STRATEGY which reports directly to the Board of Management. A separate Corporate Development unit is the Group-wide point of þ We have carried out a comprehensive analysis to identify contact for sustainability issues. A person from each of the the main sustainability issues for EWE and its stakeholders. relevant organisational units has also been assigned to each We incorporated aspects based on the GRI standard and set area of action. Under their leadership, experts and managers thresholds for these aspects within and outside of the com- from individual Group companies work on the challenges in- pany. We also identified additional content that is relevant volved in each area >> G4-34. We will be expanding our sus- for our business model. We systematically investigated tainability management system continuously over the coming the expectations of our stakeholders regarding responsible years in order to reach our targets and thus implement our entrepreneurship by recording them in a survey and weight- strategy successfully. ing them. We derived the main areas of action for our sustainability strategy on this basis while taking the importance of these issues for EWE into account. A materiality matrix shows the relative importance of each area for our stakeholders and EWE. A value of 7 represents a very high degree of relevance, while 4 represents a proportionally lower degree of relevance > See p. 19; >> þ G4-18; þ G4-26. 1 — An aggregate score from four customer service indicators (customer satisfaction, willingness to recommend our company, likelihood of staying with the company and comparison with competitors) based on the results of the BDEW Customer Focus study (see p. 44, Regional responsibility). 2 — For the energy field 3 — The healthy employee rate stands in opposition to the absence rate. This means that if the absence ratio is 3 per cent, the healthy employee rate is 97 per cent. The absence rate is the ratio of days of absence resulting from incapacity to work to the target number of working days assigned to the reporting period. This also includes annual leave. SUSTAINABILITY – PART OF OUR GROUP STRATEGY 21 SUSTAINABILITY STRATEGY þ Area of action Objective by 2020 Measures Progress criterion Target value for 2020 Current status in 2014 Better than the average for Germany determined by the German Federal Network Agency (= SAIDI: System Average Interruption Duration Index) 5.5 minutes per year, per customer (Average value from German Federal Network Agency: 15.3 minutes per year, per customer) 1 Security of supply and network stability We are building a + Implementing the maintenance sustainable and efficient and reinvestment strategy infrastructure for the + Expanding crisis and emergency people in the region. management + Supporting the expansion of the regional broadband network + Expansion of smart grid research projects and field tests ower outage durations P in minutes per year, per customer in Germany 2 Innovation and product responsibility We bring energy, tele+ Launch of an innovation portal communications and + I nterdisciplinary research and developinformation technology ment projects together to create the + Expanding the range of energy intelligent energy supply efficiency products and services systems of tomorrow. Number of ideas submit- 10 projects initiated per ted via the innovation year portal that culminated in a project 3 Climate protection and generation We are making our ener- + Expansion in the use of wind p ower CO2 emissions in grams gy generation processes + M aking our power plants more flexible per generated kilowatt more environmentally and more efficient hour of electricity friendly. + Bringing the steam turbine power plant online 4 Environmental management and resource efficiency We handle energy re+ Establishment of a Group-wide energy sponsibly and minimise monitoring system our consumption within + Launch and certification of further the company. energy management systems Number of companies Twelve companies certified with ISO 50001-certified energy management systems 4 companies have already been certified + swb Services + Bursagaz + EWE GASSPEICHER + EWE VERTRIEB 5 Regional responsibility Our activities make a significant contribution to the development of the region. + Greater involvement of members of the public in wind farm projects + Expansion of the network investment model + Continued tailoring of sponsorship commitments to the needs of the region + Supporting forums for discussions Regionality index Better than the average from the “Customer Focus – Households” (Kundenfokus Haushalte) study published by the German Association of Energy and Water Industries (BDEW); a minimum of 67 if the average falls below this level 72 (German Association of Energy and Water Industries (BDEW) “Customer Focus – Households” study average: 68) 6 Supply chain We are implementing specific sustainability requirements for our suppliers. + Introduction of a supplier code of conduct + Providing purchasers with sustainability training + Establishment of a strategic supplier management system Proportion of strategic materials and services suppliers who commit to the supplier code of conduct Over 95% of strategic ma- The supplier code terials and services suppliers of conduct has been covered developed and will be introduced in 2015 7 Market and transparency We are a trustworthy + Implementation of customer service service provider for our strategy customers and a reliable + Intensify customer loyalty measures contract partner. Customer loyalty index1 742 722 8 Health and occupational safety We guarantee a safe and healthy working environment. 97% 95.3% 75 weekdays 85.6 weekdays + Introduction of leadership curriculum Healthy employees rate3 on health management + Expansion of training on working hours and self-management + Intensification of measures related to stress prevention, healthy eating and fitness + Introducing Group-wide Health, Safety, Environment (HSE) policy Reduction in CO2 emissions in grams per generated kilowatt hour of electricity by 40% compared to 2005 levels 9 We are an attractive + Development of a brand identity as Employees and employer for the region. an employer education + Establishing a demographic management system + Helping employees to have a healthy work/life balance Time taken to fill positions 10 Data protection and information security Proportion of all > 85% employees in all relevant (the maximum proportion in companies who have practice) been trained in data protection, information security and unbundling using e-learning modules We are a reliable partner + Introduction of relevant e-learning in the areas of data modules protection, information + Continued development of a security and unbundling. Group-wide information security management system in accordance with ISO 27001 requirements Innovation portal has been designed 540 grams per generated kilowatt hour of electricity (equivalent to a 34.8% reduction compared to 2005) Resolution on introduction of e-learning modules has been prepared þ EWE-FK01 to EWE-FK10 22 EWE SUSTAINABILITY REPORT 2014 STAKEHOLDER DIALOGUE EWE is also represented in scientific associations like the Association for the Promotion of Science and Humanities þ We have been in dialogue with our customers, and with in Germany (Stifterverband für die Deutsche Wissenschaft citizens, scientists, politicians and other stakeholders for a e. V.) and the National Academy of Science and Engineering number of years. For example, we have set up customer and – a catech e. V. >> G4-15. network advisory boards in our regions and established the Energy Turnaround Forum to let members of society share In future, we want to intensify our dialogue with our stake- their ideas about the region’s energy future >> þ G4-26. holders and establish new formats for communication. Our aim is to communicate our activities in a transparent and EWE also initiated the Bullensee Group. This is a group of trustworthy manner and give our stakeholder groups addi- renowned scientists and practitioners who meet on a regular tional opportunities to share their concerns. In this way, we basis to discuss future issues. The experts met for the first want to play an active role in shaping major economic, ecolo- time near the Bullensee lake near Bremen in 2005 and drew gical and social developments and find sustainable solutions up ten assumptions about the energy supply of the future. with our stakeholders. EWE also plays an active role in a variety of industry and special interest associations. We hold leadership positions in some, and are involved in projects and working groups for several others. EWE is part of the following associations, among others: +German Association of Energy and Water Industries (BDEW) + German Association of Local Utilities (VKU) +German Association of Broadband Communication (BREKO) +Federal Association for Information Technology, Telecommunications and New Media (BITKOM) +German Working Group for Environmentally Friendly Management (BAUM) + Netzwerk Compliance >> G4-16 23 OUR AREAS OF ACTION OUR AREAS OF ACTION 24 EWE SUSTAINABILITY REPORT 2014 SECURITY OF SUPPLY AND NETWORK STABILITY As a regional energy provider, we want to guarantee that our OUR WAY FORWARD customers have a secure energy supply. We are bringing the areas of energy, telecommunications and information technol- NETWORK, STORAGE AND GENERATION SOLUTIONS ogy together to prepare for “smart energy systems”, an issue FOR A RELIABLE SUPPLY which is set to be important for the future. The networks have a decisive role to play in this process as the link between genera- The distinguishing feature of EWE’s network companies’ me- tion and consumption. Due to our geographical situation, we dium and low voltage network is that almost 100 per cent of are familiar with the special challenges of decentralised gener- the cables are underground. This makes them less susceptible ation structures and integrating renewable energies into the to disruption than cables that are laid above ground. This has network infrastructure. Around 75 per cent of the electricity a positive impact on the number of power outages in our net- transported in the EWE NETZ network already comes from re- work, which is relatively low for the nation as a whole. newable sources. With network outages of less than six minutes per year per customer, the EWE Group’s network compa- The EWE network companies are also reliable gas network nies lead the field in Germany. operators, with downtime totalling less than one minute per customer and year. EWE laid the first large-scale natural gas network in Germany over 50 years ago. We have been expand- OUR OBJECTIVE ing our infrastructure consistently ever since. We are currently expanding the networks in our Polish and Turkish regions. We SUSTAINABLE INFRASTRUCTURE FOR THE REGION are building a new, modern natural gas infrastructure in the cities of Iznik and Develi. Our primary goal is to build and operate a sustainable and efficient infrastructure for people in the region. The reliabili- Natural gas storage facilities make a significant contribution ty of the electricity supply is a key yardstick in determining to the security of our gas supply. With a working gas volume security of supply and network stability. That’s why we meas- of around 1.9 billion cubic metres, EWE is one of the major ure our progress on the basis of p ower outages in minutes per storage facility operators in the European natural gas market. customer, per year, resulting from unplanned interruptions in We have facilities in Huntorf in the district of Wesermarsch, the German medium and low voltage network. Power outages in Nüttermoor, in the East Frisian municipality of Jemgum, in lasted 15.3 minutes on average in 2013. þ The figure for EWE’s Rüdersdorf near Berlin, and in Bremen-Lesum. These store gas network companies is already much lower, at 5.5 minutes in in caverns which are created in naturally-occurring salt domes 2014. This figure covers the networks of Group subsidiaries according to strict environmental and safety criteria. EWE NETZ, wesernetz Bremen GmbH (wesernetz Bremen) and wesernetz Bremerhaven GmbH (wesernetz Bremerhaven), In order to guarantee a secure supply of electricity, conven- swb’s urban networks >> þ G4-EU29, þ EWE-FK01. We want tional power plants will continue to be needed alongside re- to remain better than the national average by 2020. newable sources of energy over the coming decades. These include the conventional power plant blocks which swb operates in Bremen and whose flexibility and efficiency has been continuously improved. > p. 34, Climate protection and generation; see also Risk management, p. 14 25 OUR AREAS OF ACTION: SECURITY OF SUPPLY AND NETWORK STABILITY SMART GRIDS Network infrastructure operators face the challenge of integrating renewable energies without endangering network NETWORKS stability. Smart grids will play an ever increasing role in overcoming this hurdle. They use information and communications technology alongside modern control technology þ In Germany, our networks supply around to compensate for fluctuations in the supply and demand of 984,800 houses with electricity, 851,100 energy. houses with gas and 32,600 houses with telephone and internet services EWE NETZ is currently using smart local network stations in >> þ G4-EU03. Emsland to test how to feed in more electricity from photovoltaic power plants and other renewable sources without expanding the network. These stations control the voltage þ Our electricity network in the Ems/Weser/ automatically, avoiding the increases in voltage which push Elbe and Bremen regions covers 92,500 the networks to the limits of their capacity. Local network kilometres. stations use a transformer to connect the local low-voltage networks with regional medium-voltage networks, which are operated at a higher voltage. Our 69,500 kilometre gas network supplies gas As part of the 2009 eTelligence project, EWE conducted field Turkish cities of Bursa and Kayseri, and in parts tests in Cuxhaven to determine how smart decentralised of south and west Poland. to customers in our German regions, in the energy management could work. The ongoing Green Access research project is developing control concepts to enable the components in the network to communicate with one 15,100 kilometres of our telecommunications another. As autonomously learning systems, they are de- network is copper, with fibre optic cable signed to adapt to changes like the connection of new elec- accounting for a further 21,200 kilometres. At tricity generators and consumers. EWE is working together 36,300 kilometres, our telecommunications with partners from the fields of science and industry to test network is one of the largest and most powerful how automation solutions like these can be implemented. > Continue on p. 28 networks in Germany >> þ G4-EU04. 26 EWE SUSTAINABILITY REPORT 2014 BROADBAND EXPANSION: EWE AND MEMBERS OF THE PUBLIC WORKING TOWARDS A SHARED GOAL “Disastrous”, “terrible”, “unbearable” – these words come stede. “Everything would just stop working in the afternoon up again and again when council chairmen Heino Neumann and evening. Children couldn’t do their homework and the and Wolfgang Siems talk about what the internet used to only way our local fire brigade could communicate with the be like in the villages of Hollriede and Tarbarg near Wester- new command centre in Oldenburg was by radio,” Heino Neumann recalled. “We complained about the issues for years, but things only improved when EWE got involved at the start of 2014.” “It got a lot easier for people to find tenants as soon as we announced that high-speed internet was on its way.” Wolfgang Siems The 300 residents of Tarbarg and 400 residents of Hollriede now have access to a broadband network with transfer rates of up to 50 megabits per second (Mbps), as do the 25 houses along the five-kilometre road connecting the two villages. Technology that would provide internet access to hundreds of people in a city was installed just for them. Ralf von Dzwonkowski, EWE’s municipal supervisor in Ammer land, still remembers how it all began. The local a ssociations invited every high-speed internet provider to an informational meeting, and EWE was the only one that came. He quickly realised that EWE was a local supplier and service provider that wouldn’t let the residents of Hollriede and Tarbarg be left behind when it came to internet access. However, it was also clear that five kilometres of fibre o ptic cable and three service area interfaces would be needed to connect the 220 houses in the areas. “Financially, it just wasn’t viable.” This dilemma was solved when EWE joined forces with the Engaging with EWE – council chairmen Wolfgang Siems (left) and Heino Neumann local residents and the members of the local associations decided to handle the excavation work themselves. Local 27 OUR AREAS OF ACTION: SECURITY OF SUPPLY AND NETWORK STABILITY High-speed internet makes communication easier between the local Westerstede fire brigade and its command centre in Oldenburg. construction companies provided excavators and diesel and Broadband availability has spurred development in the also offered their specialists to cross domestic connections or villages. Building plots are selling again in Hollriede and tunnel under intersections. EWE kept a close eye on the work. the Chairman of Tarbarg’s local association Wolfgang Siems Having members of the public set up the infrastructure in- knows that. “It got a lot easier for people to find tenants as stead of specialist companies was the exception rather than soon as we announced that high-speed internet was on its the rule for the company. way,” he said. “For EWE,” said Ralf von Dzwonkowski, “the project is tangible proof of what members of the public can The local associations provided around 4,000 man-hours, achieve when they work together with their provider. Set- which weren’t enough to make the project economically ting up a broadband connection is worth it economically if it viable over the long term. EWE needed a connection agree- results in long-term customer loyalty.” ment from half of the households; these residents would also have to pay a one-off fee of 200 euros to go towards the construction costs. EWE and the local associations managed to overcome this hurdle together in just a few weeks. 28 EWE SUSTAINABILITY REPORT 2014 > BROADBAND EXPANSION IN RURAL REGIONS EWE is at the forefront of broadband expansion in northPOWER OUTAGE TIMES 5.5 min. per customer over 4,000 service area interfaces – cabinets which connect secondary cables to main cables – to our fibre optic network. We connected over 1,000 in the reporting year alone. We c urrently have a network of around 36,000 kilometres. This puts us in a position to supply over a million households with high speed internet. We are connecting not only towns and cities, but also selected rural areas, thereby making the region more competitive. in 2014 EUR west Germany. Over the past few years, we have connected 62 We are combining a number of different models to connect as many households as possible while remaining cost-effective. A significant proportion of this expansion is being financed with our own investment. We are also using European subsidies and entering into regional partnerships with municipalities and districts. þ We invested around EUR million 62 million in broadband expansion in 2014 >> þ TC-IO01. was invested by EWE years. Around another 13,300 residential units in 29 local in broadband expansion in 2014. network regions will reap the benefits of 32 funding schemes þ We will continue with this expansion over the coming awarded to EWE subsidiary EWE TEL GmbH (EWE TEL) in 75 % of the electricity transported by EWE NETZ comes from renewable sources. 2014 >> þ TC-PA01. Over 220,000 households will be connected to the broadband network in 2015 alone off the back of our own investment. 29 OUR AREAS OF ACTION: SECURITY OF SUPPLY AND NETWORK STABILITY INNOVATION AND PRODUCT RESPONSIBILITY INNOVATION AND PRODUCT RESPONSIBILITY EWE is committed to weaving energy, telecommunications and OUR WAY FORWARD information technology together to form intelligent systems and help shape the energy supply of the future. We focus on RESEARCHING SMART ENERGY SYSTEMS growth opportunities which will provide significant added value for our stakeholders. We believe that our customers and em- Our research and development activities are focused on ployees should shape the energy turnaround instead of just preparing for the upcoming changes in the energy industry. being passive participants. That‘s why we want to incorporate We concentrate on decentralised energy management issues. their ideas into our innovation management process. Through We create networks and further the transfer of knowledge our research and development activities, they are brought to by working together with industrial partners and scientific market in the form of sustainable products and services. institutions. One example is the “green2store” collaborative project. The OUR OBJECTIVE objective of this project is to combine decentralised storage capacities to form a large virtual storage unit and manage it BRINGING ENERGY, TELECOMMUNICATIONS AND IT centrally. These capacities will be provided to energy traders, TOGETHER TO CREATE INNOVATIONS electricity generators and consumers temporarily on demand without them needing to operate the storage units them- We want to make our company more innovative. That’s selves. This represents a better way to use p ower from renew- why EWE is developing a virtual innovation portal so that able energies and integrate it into the electricity network. We employees (and later customers) have a system to submit will be conducting a technical field test with nine domestic their ideas. We will measure our progress based on how many battery storage units in the Lower Saxon city of Friesoythe of the ideas submitted through the portal are incorporated in 2015. into a project. We intend to work on ten innovative proposals per year by 2020. þ Until the innovation portal is implemented, employees can write their proposals on cards and put them in suggestion boxes at any of EWE’s sites. An innovation team of managers from every area was set up in 2013 to evaluate and follow up on interdisciplinary suggestions related to new markets or technologies >> þ EWE-FK02. 30 EWE SUSTAINABILITY REPORT 2014 The focus of the research project “Controlled Charging V3.0” is designing IT systems which use a smart energy management system to optimise the process of charging electric vehicles. The project takes the fluctuating supply of energy from renewable sources and the current infrastructure into AWARDS account, and aims to make good use of the existing infrastructure while avoiding peak loads and maintaining the mobility of the user. EWE is developing a controllable home charging station which takes every issue related to the energy industry and marketing into consideration – such as com- EWE AG named patibility with all standardised electric vehicles. “Best Innovator” for sustainable innovation management þ We invested a total of EUR 2.6 million in research and de- (2009) velopment in 2014 >> þ EWE-ZA01. The Association for the Promotion of Science and Humanities in Germany (Stifter verband für die Deutsche Wissenschaft e. V.) gave us their “Innovation through Research” seal of approval for our EWE subsidiary E3/DC activities in 2014. presented with the “pv magazine award top innovation” (2014) MAKING ENERGY EFFICIENCY A FOCAL ELEMENT OF OUR PRODUCTS We are committed to providing products, services and technologies which are environmentally friendly and tailored Offshore wind farm Riffgat recognised as to the requirements of our customers. EWE developed the “Best project of the year” EQOO domestic storage system > p. 32, “EQOO makes the with German Renewable Award Tepe family more independent”, which lets our customers cov- (2014) er up to 70 per cent of their annual energy requirements with solar power that they produce themselves. 31 OUR AREAS OF ACTION: INNOVATION AND PRODUCT RESPONSIBILITY We provide our private customers with advice about energy efficiency, and also prepare energy reports for local authorities. We provide energy management advice for business ENERGY EFFICIENCY customers, including energy audits for their facilities, training for employees and implementation services for projects. The German Energy Agency presented the “Energy controlling in performance contracting” project, developed by EWE VERTRIEB GmbH (EWE VERTRIEB) and the municipality of Grossenkneten, with the “Energy Efficiency Good Practice” 8,000 award. The purpose of this project is to set up a municipal enquiries responded to energy management system not only to reduce the energy by EWE regarding energy consumption and CO2 emissions of properties in the mu- and building technology nicipality, but also to reduce pressure on the municipality’s and EWE Strom NaturWatt products come 100 per cent from 10,000 renewable sources. TÜV NORD awarded the latter its “Certi- consultations performed fied Green Energy” certificate in 2014. TÜV NORD certified on energy services our natural gas fuel product (CNG) as a “Certified Biogas in 2014 budget. Energy costs have already gone down by six per cent just one year after the system was implemented. We have provided electricity and gas products generated from renewable sources since 2007. Our swb Strom proNatur Product” due to the share of biogas. 6,000 downloads of the EWE Energy Manager App in 2014 32 EWE SUSTAINABILITY REPORT 2014 EQOO MAKES THE TEPE FAMILY MORE INDEPENDENT The sun provides enough energy for everyone on Earth – In June 2014, EWE installed a photovoltaic p ower plant on that’s a cornerstone of the energy turnaround. Electricity their roof and the EQOO domestic storage system, which is should be available everywhere and at any time – that’s a shaped like a box and about one square metre in size, in an basic foundation for our day-to-day life. To reconcile these alcove in the hall of their house. The smart system routes the two principles, we have to develop storage technology until solar electricity directly to the family’s computers, lights and it is ready for the market; EWE did just that with the EQOO appliances. If Patric, Gaby, Ayleen and Fynn Tepe aren’t using domestic storage system. People also have to be prepared a lot of electricity at the moment, the excess energy is stored to invest in these technologies, and that’s just what the Tepe in the batteries. When those batteries are fully charged and family in Cloppenburg did. the photovoltaic p ower plant is generating more p ower than the house requires, the excess is fed into the EWE network and the family is compensated. However, if the storage The Tepe family from Cloppenburg uses solar power from the EQOO domestic storage system. system is empty and the sun happens to duck behind the clouds, EWE provides the Tepe family with p ower. “We didn’t want to be tied in to rising electricity prices.” Gaby Tepe 33 OUR AREAS OF ACTION: INNOVATION AND PRODUCT RESPONSIBILITY turn on the appliances which use the most p ower, like their washing machine, when the sun is shining. But Gaby Tepe also added: “We both work, so the system does have its limits.” The family can see how much solar p ower is available at any given moment by checking an app on their phones. “But if we’re not home, we can’t react when we get some unexpected sunshine.” So there’s still room for improvement A photovoltaic p ower plant on the roof enables solar energy to be captured and fed into the domestic storage system. in the technological development of smart homes. Patric and Gaby Tepe will become even more self-sufficient if they decide to expand their electricity storage system. Their heating system is twenty years old, and there would be quite Self-sufficiency is the immediate response when you ask a few benefits to using a heat pump to get heat energy from them why they chose the EQOO system. “We didn’t want to the outside air. “The pump would draw p ower from the larger be tied in to rising electricity prices,” said Patric and Gaby storage unit.” Tepe. In the past, they always just went with the cheapest provider. “We were fed up with switching all the time. It just wasn’t getting us anywhere. Now that we have the EQOO, we can be pretty certain about how much we will be spending on electricity for the next 15 or 20 years.” The first nine months have convinced Patric and Gaby Tepe that they made the right decision. The Tepe family reduced their electricity bill by around 65 per cent between June and October. The solar energy that they produced covered 27 per cent of their energy needs between November and February, when there wasn’t much sun. The family helped themselves by matching their electricity consumption habits to their energy supply. They normally An app shows the Tepe family how much solar power is currently available. 34 EWE SUSTAINABILITY REPORT 2014 CLIMATE PROTECTION AND GENERATION As an energy provider, we are particularly responsible for the base to monitor our CO2 emissions. This calculation includes protection of the climate. We want to drive the growth of re- conventional, combined heat and p ower plants (CHP plants), newable energies in our regions. That’s why we have been in- waste processing plants and renewable energy facilities. vesting in wind power for over 25 years – first on land, and also offshore since 2008. Over 30 per cent of the electricity1 that we generate comes from renewable energies, and this number OUR WAY FORWARD is increasing every year. Conventional p ower generation must complement renewables until they can cover all of our energy MAKE GREATER USE OF RENEWABLE ENERGIES: requirements. EWE’s Bremen-based swb operates efficient A FOCUS ON WIND POWER coal, gas and blast furnace gas power plants on three different sites along with two waste processing plants. We use the renewable sources of wind, sun, biomass, waste3 and water to generate electricity and heat, and are focused on expanding the use of wind p ower. OUR OBJECTIVE We have been operating onshore wind turbines for 25 years, MAKE ENERGY GENERATION MORE ENVIRONMENTALLY with just under 100 plants in our regions producing 152 FRIENDLY ower. We have also been involved in megawatts (MW)4 of p offshore wind p ower for over five years. In 2008, EWE played Reducing CO2 emissions is at the heart of climate protection a leading role in the construction of Germany’s first offshore and is an integral part of the EU’s climate protection targets wind farm, alpha ventus. The purpose of this pioneering pro- for 2030. We are playing our part by increasing the efficiency ject was to demonstrate that wind farms are economically of our generation facilities and expanding the use of r enewable and technically viable. Another milestone was passed in Feb- energies. We measure our progress in this area on the basis of ruary 2014 when Riffgat, the first commercial wind farm in how effectively we reduce our CO2 emissions per generated the German North Sea, came online. Riffgat has 30 wind tur- kilowatt hour (kWh) of electricity. We want to reduce this bines with a total capacity of 108 MW > p. 38 “EWE setting number by 40 per cent by 2020 compared to 2005 levels. new offshore standards”. In 2014, Riffgat and alpha ventus þ In the reporting year, our specific CO2 emissions were 540 g/ generated a combined 592,346 megawatt hours (MWh) of kWh >> þ EWE-FK03, þ G4-EN18. This represents a 34.8 per electricity. That is equivalent to the annual electricity con- cent decrease compared to 2005. We are using 2005 as a refer- sumption of around 170,000 homes. 2 ence point because that is when we started using a CO2 data 1 — Not including electricity generation from blast furnace gas 2 — Not including CO2 emissions from blast furnace gas. The entire carbon footprint of our thermal waste management comes from the products and consumables that are disposed of. Our electricity and district heating from waste incineration energy products are therefore considered CO2-neutral, i.e. they produce net emissions of 0 g CO2/kWh. 3 — According to the Renewable Energy Act (EEG), around half of the energy generated from waste is considered renewable. This is because some of the waste comes from plant-based sources and is therefore CO2-neutral when burned. 4 — Including partially-owned capacity from shareholdings measured using the equity method 35 OUR AREAS OF ACTION: CLIMATE PROTECTION AND GENERATION 2011 2012 658 722 728 728 g CO2 /kWh el 786 2006 784 2005 800 790 815 900 828 SPECIFIC CO2 EMISSIONS FROM ELECTRICITY GENERATION 700 540 600 500 400 2007 2008 2010 2009 2013 2014 YEAR EWE has reduced its CO2 emissions per generated kilowatt hour or electricity continuously since 2005. INSTALLED ELECTRICAL CAPACITY ELECTRICITY GENERATION IN 2014, BROKEN DOWN AS AT 31.12.2014 (in MW) BY PRIMARY ENERGY SOURCES (in GWh) þ þ Total5 1,348 Total7 5,010 Renewables4 303 Hard coal 2,295 Onshore wind 152 Blast furnace gas 1,065 Offshore wind 137 Wind 757 Other (raw biogas, photovoltaic, hydroelectric) Waste to energy 595 Other (bio natural gas, raw biogas, natural gas, replacement fuels, fuel oil, sewage gas, solar, water) 298 Conventional6 14 1,045 Hard coal 553 Blast furnace gas/converter gas 176 Natural gas 155 Light oil 86 Waste to Energy 75 þ G4-EU01 þ G4-EU02 5 — Waste-to-energy is listed entirely under conventional generation in this representation, even if the Renewable Energy Act (EEG) deems around half of the energy generated from waste to be renewable. This is because some of the waste comes from plantbased sources and is therefore CO2-neutral when burned. 6 — Major facilities of swb Erzeugung und Entsorgung; including mothballed blocks 7 — Contrary to indicator G4-EU01, this also includes electricity generation from combined heat and power plants. 36 EWE SUSTAINABILITY REPORT 2014 This shows how significantly wind energy contributed to our and Audit Scheme (EMAS) since 1998. The same scheme has improved CO2 balance in the reporting year . been used for the medium calorific p ower plant since 2009. 8 MAKING CONVENTIONAL FACILITIES MORE EFFICIENT CONSTRUCTION OF A GAS AND STEAM TURBINE POWER PLANT In addition to expanding our use of renewable energies, we are investing systematically in the efficiency and flexibility In order for the energy turnaround to be successful, we need of our conventional facilities. The EWE subsidiary swb com- flexible conventional p ower plants which are able to com- mitted to this path in 2009 by building and bringing into ser- pensate for the fluctuating amount of energy coming from vice a modern waste processing plant and medium calorific renewables over the next few decades. That’s why swb built power plant. Around half of the waste comes from plant- a gas and steam turbine power plant in Bremen-Mittels- based sources and is therefore CO2-neutral when burned. The büren, which is scheduled to go online in 2015. The distin- 2013 renovation of the waste incineration power plant also guishing feature of this p ower plant is that it can increase improved performance, with it now generating three times as and decrease its output quickly. The plant will run on envi- much electricity from the same amount of waste. ronmentally friendly natural gas and has a capacity of around 445 MW. It has an efficiency coefficient of around 58 per swb increased efficiency by around two per cent in the re- cent, the highest of any fossil fuel p ower plant. This means porting year by modernising the largest coal block in the that it generates the most electricity possible from the fuel Bremen-Hafen power plant. We also took two hard coal that it uses. A significant part of the generating capacity of blocks in the Bremen-Hastedt and Hafen power plants offline the plant has already been sold on a long term basis. at the end of 2013 because they no longer met our efficiency and economic viability requirements. We will keep them in PROTECT BIODIVERSITY reserve so that they can be used in an emergency. We have also modernised a number of combined heat and p ower We are committed to having as little impact on ecosystems plants and switched to the CO2-neutral fuel biomethane. as possible. When this is unavoidable, we repair any damage that we cause. We comply with all relevant environmen- swb uses standardised environmental management systems tal requirements as a matter of principle. þ EWE only has to monitor and comply with legal requirements and internal a small number of sites in protected areas. The Ems Emden targets. Its generation facilities have been ISO 14001-certified wind p ower plant, one of over 20 onshore wind power sites since 2009. The Bremen waste incineration p ower plant has that our Group operates, is located in a flora/fauna habitat been monitored in accordance with the EU Eco-Management region. EWE has established a recovery area of 3.6 hectares to implement flora and fauna regeneration measures >> þ G4-EN11, þ G4-EN12, þ G4-EU13. 8 — The 592,346 MWh of electricity generated relates to 100 per cent of the shareholdings; only the equity interest allocated to EWE was used to calculate the specific CO2 value. 37 OUR AREAS OF ACTION: CLIMATE PROTECTION AND GENERATION þ We also have three transformer stations that were built between 1970 and 1995 in an area in the District of Wittmund, and this area was designated an ornithological reserve in 2011. The gas storage facility that was built in 2013 in Jemgum, East Frisia is located on the outskirts of an ornithological reserve. Measures to improve biodiversity were implemented over an area of 40 hectares to compensate for this. There were no new sites in protected areas during the reporting year >> þ G4-EN11, G4-EN12, G4-EU13. 108 MW Offshore wind farm brought online in 2014 (Riffgat offshore wind farm) EWE supports biodiversity research projects. The German Federal Environment Ministry’s RAVE research initiative (Re- than expected. The scientists found that fish biodiversity had 20 increased. The foundations of the turbines serve as artificial þ Reduction in CO2 emissions 20149 reefs, where mussels, sea anemones and other species have compared to 2013 of just under 20 per cent to settled. There was no wide-spread destruction of fauna, as we 2,263,475 Mg2 had feared, neither were large numbers of migrating birds in- >> þ G4-EN15, þ G4-EN19 search at Alpha Ventus) has examined for example the impact that the construction and operation of the alpha ventus wind farm have had on biodiversity. After a five year research period, the conclusion was reached that the offshore wind facilities have had much less of an impact on the ecosystem % jured as a result of colliding with the wind turbines. Researchers also found that operating the wind farm had no impact on marine mammals. 31.3 % Share of renewable energies in electricity generation in 2014 9 — Direct emissions from electricity and heat generation facilities; not including CO2 emissions from blast furnace gas. 38 EWE SUSTAINABILITY REPORT 2014 EWE SETTING NEW OFFSHORE STANDARDS Planning is underway for more than 50 wind farms in the The company needed just 14 months, from June 2012 to July North Sea. North Sea ports are ready for an offshore boom, 2013, to build 30 Siemens wind turbines with a total output and several companies in the Northwest are raring to invest. of 108 MW 15 kilometres off the coast of Borkum and con- With the Riffgat wind farm, EWE has demonstrated that off- nect them to the transformer substation in the wind farm. shore wind farms can be built in a feasible time frame and an According to Irina Lucke, Riffgat Technical Project Manager environmentally friendly manner. and Managing Director of EWE Offshore Service & Solutions GmbH (EWE OSS), “this was possible because we had a com- The transformer station transforms the generated electricity and feeds it into the onshore transmission network through a 70 kilometre long export cable. “We had a competent team to plan the construction in detail and make the plan a reality.” Irina Lucke, Riffgat Technical Project Manager and Managing Director, EWE OSS petent team to plan the construction in detail and make the plan a reality.” The first commercial wind farm in the North Sea now generates enough green energy for more than 120,000 homes. EWE focused on minimising the environmental impact of the construction of the wind farm in the planning phase. One of their main concerns was protecting fish and marine mammals against the noise emissions that would be caused when sink- 39 OUR AREAS OF ACTION: CLIMATE PROTECTION AND GENERATION Within 14 months, EWE has installed 30 wind turbines over an area measuring around six square kilometres. ing the pillars. To do this, EWE used a vibratory pile driver to EWE’s Riffgat project not only bolstered the coastal region’s drive the pillars into the first few metres of the seabed. A sec- reputation as a source of environmentally friendly energy, but ond metal tube was then lowered into the water around the also increased the region’s expertise in this area. “Offshore monopiles. The space between the two was then filled with wind farms are still pretty unusual,” said Irina Lucke. “But air bubbles. This was the first time that this technique had standards and processes are generally becoming more and been used commercially. Instead of reverberating unimpeded more important when it comes to building and operating off- through the North Sea, the sound waves created by the ram- shore wind farms. That’s why our recent ISO 9001 certifica- ming lost energy as they moved through the metal, water tion is an important factor for EWE OSS.” EWE is also making and bubbles. EWE’s experience with its previous offshore pro- the expertise that it has gathered from planning, building and ject alpha ventus shows that marine life will s helter near the operating the wind farm available to others. EWE OSS helps wind farm because fishing is not allowed in its vicinity. 3,000 companies in both the planning and construction phase, and Heligoland lobsters were introduced at four wind turbines can also take on responsibility for operating offshore wind in summer 2014 to investigate the new habitat among the farms upon request. Irina Lucke: “This is a real a dvantage of rocks that will protect the turbines against scour. our regional structure. We’re based on the coast, so it doesn’t take us long to get to any of the wind farms.” Environmental awareness was one of the reasons that the Renewable Energy Hamburg Cluster named Riffgat the “Best Project in 2014”. The network presented the company with the German Renewable Award in front of 2,000 guests on the opening day of the WindEnergy fair in Hamburg. 40 EWE SUSTAINABILITY REPORT 2014 ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY Handling resources and the environment responsibly is part of OUR WAY FORWARD EWE’s identity. That’s why a comprehensive environmental management system was set up in 1998 at the power plants of EWE’s SAVING ENERGY SYSTEMATICALLY subsidiary swb. The subsidiary also publishes relevant indicators such as CO2 emissions in a regular environmental report. þ The EWE company swb Services and our Turkish network company Bursagaz were ISO 50001-certified in 2011. Group We focus on reducing internal energy consumption to conserve subsidiary EWE GASSPEICHER GmbH (EWE GASSPEICHER) resources. We want to identify and utilise potential improve- was certified in 2013, while EWE VERTRIEB was certified in ments in this area across the Group. Setting up energy manage- 2014 >>þ EWE-FK04. They were followed in 2015 by EWE ment systems will give us the framework we require to do so. ERNEUERBARE ENERGIEN, swb CREA, swb Erzeugung und Entsorgung, wesernetz Bremen and wesernetz Bremerhaven. We want to continue down this path in the next few years OUR OBJECTIVE and have other companies certified, including our largest, EWE NETZ. TO MINIMISE INTERNAL ENERGY CONSUMPTION INTRODUCTION OF AN ENERGY MONITORING SYSTEM In 2014, we decided to put a system in place to record and analyse our internal electricity, heat and fuel consumption We will also set up an overarching Group-wide energy and to define measures to minimise this consumption. We are monitoring system into which we will integrate our existing using energy management systems to set up standardised and future energy management systems. Companies which processes, which we will improve continuously. We measure have not begun the process of implementing a management our progress in this area based on the number of certificates system by the end of 2015 will carry out an energy audit in that our companies are awarded. We want to have twelve accordance with the German Energy Services Act (Energie- selected companies ISO 50001-certified for energy man- dienstleistungsgesetz). This will also be integrated into the agement systems by 2020. These are EWE AG as the holding energy monitoring system. company and subsidiaries with a high level of energy consumption. We have been recording the energy consumption of our administrative buildings for years. In future, they will form an important part of the energy monitoring system. We will evaluate energy conservation measures that have already been implemented for these buildings and expand them to other sites if suitable. These measures include building a geothermal facility for heating and cooling buildings or introducing floor lamps and proximity sensors. We will be focusing on our data centres in 2015. 41 OUR AREAS OF ACTION: ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY þ Our administrative buildings and data centres consumed 297.1 terajoules (TJ) in the reporting year >> þ G4-EN03. This is equivalent to 82.5 gigawatt hours (GWh). 47.5 GWh of this was electrical energy for lighting, IT and communi- ISO 50001 cations equipment, cooling for data centres, air conditioning ENERGY MANAGEMENT SYSTEM and ventilation technology, etc. 35 GWh were used to heat rooms and for other heating. OPTIMISING FLEET CONSUMPTION EWE has implemented pilot projects to optimise fuel consumption in the areas of employee mobility and the c ompany fleet. For example, we have introduced pedelecs and electric vehicles at some sites, and have set up electric charging stations at various branch offices. 49 per cent of our 2,063 company vehicles are diesel-powered. 41 per cent are natural gas-powered, and a further 10 per cent run on petrol. þ The energy consumption of our fleet was 121.6 TJ in the reporting 12 OBJECTIVE 2020 certified companies year >> þ G4-EN03. This corresponds to around 16.4 MWh per vehicle. We will set up a Group-wide fleet management system in 2015 to combine the existing fleets of individual companies and make them more efficient. 4 STATUS 2014 certified companies 42 EWE SUSTAINABILITY REPORT 2014 ENERGY CONCEPT FOR NEW HEADQUARTERS IN BURSA MEETS INTERNATIONAL STANDARD EWE’s Turkish subsidiaries Bursagaz and Enervis are building their new headquarters in accordance with the criteria of the LEED (Leadership in Energy and Environmental Design) international standard for ecological construction. The 300 employees in Bursa, 90 kilometres from Istanbul, will be able to move into the six-storey building, which provides around 5,600 square metres of office space, in the middle of 2015. “We want to have as little impact on the environment as possible and take a stand for energy efficiency, which is still very much in its infancy in Turkey,” said Dr. Frank Quante, the “We want to take a stand for energy efficiency.” Dr. Frank Quante, Managing Director of EWE Turkey Holding Managing Director of EWE Turkey Holding. “The building will generate a significant amount of the electricity and heat that it uses. We will also optimise our energy and water consumption,” added Sükrü Özden, Bursagaz’s Managing Director in charge of technology. Their EWE colleagues in Oldenburg helped them to do this with their specialist expertise. The Green Building Council based in Washington, DC has awarded the LEED certificate to just 100 buildings in Turkey. The gold The new corporate building in Bursa has its own combined heat and power plant, solar generators and wind turbines to enable it to generate part of the needed electricity itself. 43 OUR AREAS OF ACTION: ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY “The new headquarters will strengthen the reputation of Bursagaz and Enervis as role models for the Turkish energy market.” You can’t reach the gold level with energy efficiency alone, though. Rainwater and wastewater which is not heavily contaminated will be collected inside the building to be reused in the toilets. The plot which EWE purchased for the new building also has good links to public transport. Special bicycle spaces, showers and changing rooms are available for employees who cycle to work. There are also charging stations for electric vehicles. At night, the building is lit in a way that Dr. Frank Quante is appropriate for the surrounding area in accordance with the LEED criteria. Any waste created during construction will be separated at the construction site and prepared for recycling. status of this standard, which the EWE subsidiaries hope to achieve, has only been awarded once there. The new headquarters meet our own demanding energy efficiency requirements as well as regulations set by the Turkish The new building in Bursa incorporates efficient building government. These regulations require the industrial s ector technology that meets the criteria of the gold level. At its to use 15 per cent and buildings to use 27 per cent less e nergy heart lies a combined heat and power plant whose waste by 2023. For Dr. Frank Quante, this not only provides extra heat can be used to cool and heat the building simultane- motivation, but also increases the size of the market for ously. This will reduce CO2 emissions by 30 per cent. Ten per efficiency services. “The new headquarters will strengthen cent of the building’s electricity needs will also be generated the reputation of Bursagaz and Enervis as role models for the from renewable sources, with a 45-kilowatt-peak (kWp) solar Turkish energy market.” power system installed on the roof. An additional 100 square metres of semi-permeable solar cells with a nominal output of 5 kWp has been installed on the façade. The building also has two 2 kW wind turbines which can provide electricity even when wind speeds are low. The subsidiaries also plan to install a system that will use fibre optic cables to bring sunlight to rooms which don’t have any access to natural light and the basement. 44 EWE SUSTAINABILITY REPORT 2014 REGIONAL RESPONSIBILITY As a predominantly municipally owned utility company, EWE is OUR WAY FORWARD committed to regional responsibility. We actively seek out dialogue with the people in our regions. We are committed to ed- TO SUPPORT REGIONAL VALUE CREATION ucation, science, culture, sport and social issues, and to creating value in the region. Our Group’s activities create jobs and We want everyone involved to play an active role, and to generate income in our regions. This was confirmed by a this end, EWE has developed a variety of different business scientific investigation by the research and consultancy firm models. EWE is setting up new wind farms in the region in C ONOSCOPE. EWE has a significant indirect and direct eco- partnership with citizens, local authorities and landowners. nomic impact on the region. > see box on the next page The first wind farm to be partially owned by a local authority is located near Spolsen in the district of Frisia and has been providing electricity since the end of 2013. OUR OBJECTIVE We also allow towns, cities and municipalities to invest in TO CONTRIBUTE TO THE REGION’S DEVELOPMENT our network companies and receive a guaranteed dividend. We have set ourselves the objective of continuing to contrib- tract undecided local authorities and those looking to add to ute to the region’s development through our activities. We their existing shareholdings. A total of 25.1 per cent of EWE use a regionality index to check how effectively we do this. NETZ is available to invest in until 2018. The cities of Bremen This index is calculated on the basis of the BDEW Customer and Bremerhaven have held a 25.1 per cent stake in each of Focus (German Association of Energy and Water Industries) the network companies wesernetz Bremen and wesernetz study. The index is based on two survey criteria which our Bremerhaven since July 2014. EWE publicised an additional investment offer in 2014 to at- customers rate on a given scale: “EWE is important to the region” and “EWE supports education, sport, culture and so- EWE sponsors around 300 cultural, social and sporting pro- ciety”. We use the ratings to calculate a weighted index val- jects each year. In addition to the Oldenburg-based basket- ue between zero (completely disagree) and 100 (completely ball team EWE Baskets, football team Werder Bremen and agree). Turkish sports club Bursaspor, EWE cofinances events such as the Bremen Music Festival, the Brandenburg State Orchestra Our aim is to achieve a result that outperforms the industry average by 2020. This average in 2014 was 68. þ Collectively, the figure for EWE and swb came to 72; this figure was calculated using the individual figures for the two companies >> þ EWE-FK05. We want to keep it at this level, despite challenging market conditions and the ensuing need for cost reduction measures. If the industry average falls in coming years, we will strive to keep our index value over 67. of Frankfurt and the Beethoven Festival in Warsaw. 45 OUR AREAS OF ACTION: REGIONAL RESPONSIBILITY EWE IS A SIGNIFICANT REGIONAL ECONOMIC FACTOR The figures2 from the 2012 CONOSCOPE study1 show that þ 1. EWE CREATES 25,000 JOBS 4. O VER EUR 1 BILLION IN INCOME TRICKLES DOWN TO WORKERS IN THE REGION EWE creates 17,043 additional full-time jobs in the region indirectly through its business activities (purchases, capital In addition to the direct income of EWE employees, which expenditure, tax payments) and the expenditure of its 7,746 totals EUR 479.4 million, the business activities of EWE gen- employees. This means that each EWE employee accounts for erate an additional EUR 555.6 million of indirect and induced two other jobs. income. This means that every euro of Group income results in EUR 1.20 income in the region. 2. EVERY OTHER EURO REMAINS IN THE REGION 5. E UR 600 MILLION IN TAXES AND LEVIES FLOW INTO Around 43 per cent of EWE’s expenditure (purchases, wages REGIONAL BUDGETS and salaries, taxes, profits) remain in the regional economy, equal to almost every other euro. A total of around EUR 1.7 EWE provides tax revenues of around EUR 1.3 billion. EUR 367 billion remains in EWE’s regions. million of this remains in regional budgets. Orders submitted to regional supply companies and the consumer spending of employees generate additional tax payments worth EUR 227 3. EWE CREATES VALUE WORTH EUR 1.9 BILLION million on an indirect and induced level >> þ G4-EC08. Around EUR 1.9 billion of the region’s gross domestic product can be traced back to the EWE Group’s activities. Personnel expenses, tax payments and distributions of profits create EUR 774.9 million in added value. An additional EUR 1,074.2 million of value is created at an indirect and induced level3, e.g. as a result of purchases from suppliers or the expenditure of employees in the region. 1 — Ernst & Young Wirtschaftsprüfungsgesellschaft GmbH only audited how well external study reports were incorporated. 2 — Incorporates data from all fully consolidated EWE companies based in Germany. The analysis is based on data from the 2012 financial year. The term “region” in this case refers to the three regions which EWE is active in – Ems/Weser/Elbe, Bremen/Bremerhaven and Brandenburg/Rügen. CONOSCOPE GmbH is a medium-sized research and consultancy firm based in Leipzig and Essen. 3 — “Indirect effects” are defined as effects that occur at a supplier level. “Induced effects” are effects caused by the consumer spending of EWE’s employees and the employees of companies that profit indirectly. 46 EWE SUSTAINABILITY REPORT 2014 DIALOGUE WITH PEOPLE IN THE REGION COMMITMENT TO SOCIAL RESPONSIBILITY þ We have set up Group-wide dialogue formats to promote EWE supports social projects and promotes education in dialogue with the people in our regions. They allow local au- its regions. Bremen-based EWE subsidiary swb launched an thorities to have a say about the plans of our company and education initiative in 2003. It encourages nurseries, schools the issues facing it. One example is the Energy Turnaround and other educational institutions to implement innovative Forum, which enabled members of the public to say what learning methods and content. The Turkish EWE subsidiaries they think about the energy turnaround at nine sites in the Bursagaz and Kayserigaz hold regular energy efficiency semi- Ems/Weser/Elbe region between March and September 2014. nars in schools. In a second stage, any particularly promising ideas were presented to business, political and government representatives Our employees also have a part to play – they can choose to get projects up and running with companies. > p. 48, “Get- to donate the cent amount of their monthly salary as part ting citizens involved speeds up the regional energy turnaround” of the ‘last cents’ scheme. EWE matches the total and uses the funds to support social projects in the region. In 2014, Since 2011, network advisory boards have given local autho- these projects included the Varel hospice movement and the rities the opportunity to voice their opinion about planned children’s and family centre in Tostedt. or intended network expansion in each district without the need for financial commitment. Three advisory boards, each The EWE Foundation was established in 2002 and supports with 20 members, allow customers to provide new ideas, cri- local projects to do with education and childcare, science and ticism or approval for the regions of Weser/Ems, Weser/Elbe research, art and culture. These include art weeks, children’s and Brandenburg. > p. 56, “Increasing customer loyalty with and youth theatre as well as literacy programmes. The openness and transparency”; >> þ G4-SO01 Foundation’s sole mandates are the causes it represents and it serves only the general public. The ZentrumZukunft in the Emstek ecopark near Cloppenburg provides information about new energy technologies. Group subsidiary EWE NETZ uses this site to demonstrate how to integrate renewable energies into the network. Training about the energy turnaround is available for schools and colleges, tradespeople, architects, planning offices, local authorities and associations. Over 40,000 people have visited the ZentrumZukunft since it opened in 2008. 47 OUR AREAS OF ACTION: REGIONAL RESPONSIBILITY VALUE CREATED BY EWE IN 2014 þ in EUR million Direct economic value generated in 20144 Sales without electricity and energy tax 8,134.2 Distributed economic value Cost of materials and services 6,506.4 Personnel expenses 669.6 Interest expenses 230.5 Dividends 88.0 Income taxes 11.3 Investment in the community (donations)5 11.4 þ G4-EC01 4 — Additional information about the KPIs is available from p. 80 of the 2014 annual report onwards. 5 — Around 70 per cent of the donated funds were invested in research activities. 48 EWE SUSTAINABILITY REPORT 2014 GETTING CITIZENS INVOLVED SPEEDS UP THE REGIONAL ENERGY TURNAROUND EWE is shaping the energy future in partnership with citizens. Almost every idea presented at the Energy Turnaround Forum The company’s Energy Turnaround Forum gave people in the had two things in common. Firstly, they made it clear that Ems/Weser/Elbe region a framework for discussing and devel- attendees had a clear picture of their region and their living oping ideas about a climate-friendly energy supply. Around conditions. And secondly, they all asked, “It’s so obvious how 450 citizens took part in the Forum last year. They drew up we can save energy locally, increase efficiency and change 70 suggestions for a local energy turnaround in Wittmund, how we behave. Why doesn’t anyone else see that? Why isn’t Cloppenburg, Varel, Bad Bederkesa, Papenburg, Tostedt, anyone else using these opportunities?” This is why the main Delmenhorst, Bremervörde and Oldenburg. Fifteen of these point of the ideas that came out of the Energy Turnaround ideas were developed at the subsequent idea exchanges until Forum was to bring all of the different stakeholders t ogether they were ready to be implemented. to get local initiatives and projects up and running. “This series of events gave us a good picture of what’s important to people in the region. It broadened our horizons,” said EWE Project Manager Sigrid Justus. One local initiative was the idea of training school pupils to be energy guides, which was presented in Wittmund. The plan is to hold short seminars to train them on how to identify and implement potential energy-saving measures. This knowledge will spread from schools to families, allowing them to make use of these ideas in their homes. Attendees also discussed the issue of mobility among themselves and with specialists. The general consensus at the event in Varel was that it’s just not right for drivers to be the only person in their car. They agreed that more support was needed for new usage concepts and alternative propulsion systems. They proposed developing sharing projects for mobility involving electric cars and bikes. Participants at the Energy Turnaround Forum discuss their ideas in Varel. 49 OUR AREAS OF ACTION: REGIONAL RESPONSIBILITY There was lively debate in Papenburg as well. This in turn gave rise to the proposal that local authorities should buy electric cars, use them during work hours and then make them available to their citizens on weekends. This could improve people’s willingness to engage with new usage concepts and environmentally friendly transport alternatives. Bernd Hoinke, the Head of Zetel District Council, is in favour of making this idea a reality in Frisia. His district bought an electric car and a car that runs on natural gas before the Energy Turnaround Forum, but can’t use them in a car sharing model because of the leases they signed. “It just didn’t occur to us,” he said regretfully. “That shows how important it is to partner together with members of the public when looking for ideas for the energy future.” Fleet managers and environment officers from other municipalities in Frisia are now working on getting an electric vehicle sharing model off the ground. “This series of events gave us a good picture of what’s important to people in the region. It broadened our horizons.” Sigrid Justus, Energy Turnaround Forum Project Manager 50 EWE SUSTAINABILITY REPORT 2014 SUPPLY CHAIN EWE is committed to acting sustainably in its dealings with par- OUR WAY FORWARD ties outside the company. We incorporate our suppliers and service providers into our sustainability management system EXPANDING THE STRATEGIC to take full responsibility for our activities, make production SUPPLIER MANAGEMENT SYSTEM methods transparent and preserve our reputation. We have been expanding the strategic supplier management system continuously since 2011. This system provides the OUR OBJECTIVE framework for our sustainable approach to procurement: We intend to make signing up to the supplier code of conduct TO ESTABLISH A SUPPLIER CODE OF CONDUCT a requirement for all product groups and tenders where we evaluate the suitability of potential suppliers (pre-qualifica- We are implementing specific sustainability requirements for tion). The code of conduct should also be part of our ten- our suppliers. þ We drew up a supplier code of conduct in der documents so that suppliers can sign up to it before any 2014 to set specific standards regarding human rights and agreements are finalised. working conditions, occupational safety, health, environmental protection and integrity þ G4-EN32, þ G4-HR04, þ We are committed to engaging with our business partners G4-HR10, þ G4-LA14, þ EWE-FK06. We will be incorporating about the issue of sustainability in order to increase ac- the supplier code of conduct into our existing processes from ceptance of our sustainability requirements. This will give 2015 onwards. Our objective: We want 95 per cent of our us valuable input which we can use to improve our internal strategic suppliers (long-term, significant partners of EWE) sustainability management system. We will provide our em- of materials and services to sign up to the code of conduct by ployees in the Purchasing Corporate Centre function with 2020. We will be measuring our progress based on how many regular training about the main aspects of the sustainability of these suppliers have signed up to the code of conduct. We management system, and will also involve employees of our want to gradually expand our sustainability standards to the subsidiaries in this process. procurement of coal and gas. IMPLEMENTATION OF A BUSINESS PARTNER REVIEW PROCESS We also implemented a business partner review at the start of 2015. The review covers sustainability criteria. For the purpose of this review, we receive information about our partners’ business practices. 51 OUR AREAS OF ACTION: SUPPLY CHAIN OUR SUPPLY CHAIN þ Our supply chain encompasses the purchase of material We use long-term, medium-term and short-term natural and services, as well as coal and gas. We have regional, na- gas purchase agreements to guarantee moderate prices and tional and international supply relationships with around secure the supply of gas. We purchase the majority of our 10,000 companies from a wide range of sectors, including natural gas from a range of international upstream suppliers. plant and mechanical engineering, the metal industry, elec- Two thirds of the natural gas for our German regions comes trical engineering, marketing, consultancy and information from German upstream suppliers; one third comes from the technology. In 2014, our expenses were around EUR 1.05 bil- Netherlands. We also use our gas storage facilities and short- lion for materials and services >> þ G4-12. term trading to compensate for fluctuations in demand. EWE is committed to long-term partnerships with suppliers. We cover two thirds of our demand for hard coal with im- We award contracts to companies from the regions in which ports from Russia, with one third coming from the USA. Only we are active whenever possible. þ Regional suppliers re- short-term and medium-term coal purchase agreements are ceived a large proportion of our expenses for material and possible because of the volatile market price. services in 2014 (approx. 43 per cent or EUR 450.8 million) >> þ G4-EC09. 52 EWE SUSTAINABILITY REPORT 2014 MORE THAN JUST CABLES – A LONG-TERM PARTNERSHIP FOR A STRONG REGION Long-term commitment, regional roots, high quality and fair EWE gets more than just cables from Waskönig+Walter. “As prices are the main criteria that EWE uses when choosing its an independent family-run company, we think in genera- suppliers. This is demonstrated by EWE’s long-term partner- tions rather than quarters,” said Michael Waskönig, who is ship with Waskönig+Walter, which is based in Saterland in the fifth generation of his family to manage the company, along with his brother Jörg and also Stefan Nestler. “For us, financial success means maintaining our independence with long-term profitable growth.” This keeps jobs safe for people in the region and makes sure that the company will be able to train and support its own staff in future. It is also committed to a high standard of healthcare and occupational health and safety. The company is OHSAS 18001-certified, which helps the company to identify accident risks ahead of time and minimise the impact on the health of its employees. From EWE’s perspective, Waskönig+Walter’s responsible approach and actions guarantee reliability and consistent quality. Michael Waskönig used logistics and adherence to delivery time-scales to demonstrate what this means: “When we promise to deliver a certain length of this cable to a construction site ready for laying at a specific time, we follow Raw materials and cables are stored in a 240 metre long hall. through.” Knowing that you won’t have to delay construction because you were given the wrong cable or it didn’t arrive on time gives the company an advantage over competitors that offer lower labour rates. With the right overall package, you the district of Cloppenburg. The family company, founded in can manufacture cables in Germany’s industrial centres, pro- 1873, has over 500 employees. It uses 10,000 tonnes of alu- vided that getting the cheapest price isn’t the only criterion. minium, 50,000 tonnes of copper, 80,000 tonnes of plastic and a little steel every year to make cables for low-voltage, medium-voltage and high-voltage networks. 53 OUR AREAS OF ACTION: SUPPLY CHAIN Michael Waskönig, Managing Director of family company Waskönig+Walter “When we promise to deliver a certain length of this cable to a construction site ready for laying at a specific time, we follow through.” Waskönig+Walter’s products are investment items for EWE. The family company’s manufacturing processes reuse waste and are constantly improving in terms of energy efficiency. Heat, generated for example from the wire drawing process, is used to heat the office building. The company has also committed itself to reducing the amount of energy that it consumes per tonne of cable by a few percentage points each year. The small quantities of scrap material that the streamlined manufacturing process produces are collected and sorted. The company then puts this scrap in a copper or aluminium smelter to produce the wires that Waskönig+Walter uses as the base material for its cables. Any unavoidable plastic remnants left over from the manufacture and processing of insulation and cable sheaths are cleaned off and fed back into the production process. The company is also happy to calculate the carbon footprint of its products on behalf of its customers. The cable manufacturer uses 50,000 tonnes of copper a year in its production facilities. 54 EWE SUSTAINABILITY REPORT 2014 MARKET AND TRANSPARENCY The trust and satisfaction of our customers plays an important OUR OBJECTIVE part in the financial success of our company. We are committed to high-quality services and transparent business processes in TO BE A TRUSTWORTHY SERVICE PROVIDER AND order to remain attractive to our customers in an increasingly RELIABLE CONTRACT PARTNER competitive environment over the long term. This is particularly important when pricing energy products because our in We want our customers to see and appreciate us as trust- fluence here is limited by a range of factors which we have no worthy service providers and reliable contract partners. We control over. use an annual customer loyalty index to gauge our success in achieving this objective. We calculate this index on the basis of the BDEW Customer Focus study. We form an aggregated value from four customer service indicators, all of which are available for EWE and swb: customer satisfaction, willingness to recommend our company, likelihood of staying with the company and comparison with competitors. We aim to ELECTRICITY PRICE COMPOSITION 1 (in EUR) achieve a score of 74 on a scale of 0 (completely disagree) to 100 (completely agree) by 2020. Our average customer loyalty index was 68 between 2010 and 2013, slightly under the average for the sector of 70. þ We improved this to 72 in the reporting year. This score is for the Energy business area Interruptible loads: 0.5 Energy costs incl. sales: 306 Combined Heat and Power Act (KWKG): 6 VAT: 170 Offshore levy: 9 >> þ EWE-FK07. In future, it will also cover the telecommuNetwork costs: 227 Concession fee: 50 Electricity tax: 72 Industrial levy: 3 Renewable Energy Act (EEG) levy: 218 nications business area. OUR WAY FORWARD INTEGRITY AND TRANSPARENT COMPANY MANAGEMENT We believe that compliance is at the heart of responsible and transparent company management. This includes compliance FACTOR WHICH CAN BE INFLUENCED BY EWE with laws, regulations, obligations, internal guidelines and voluntary commitments on the part of our employees and their agents like service providers, consultants or agents. We 1 — Composition of the electricity price with EWE Strom comfort with an annual consumption of 3,500 kWh in EWE VERTRIEB electricity sales region 7. As of: 1.1.2014 guarantee fair market behaviour by keeping EWE compliance requirements. 55 OUR AREAS OF ACTION: MARKET AND TRANSPARENCY Compliance officers work together with other specialist divi- We also worked on improving our service in 2014. Our sales sions to help the company comply with requirements. They companies are currently revising their customer service review the regulations on a regular basis and amend them strategies for energy and telecommunications products. if necessary. The Internal Audit division also reviews past We have launched a “Customer Service” project in the EWE events. Employees and external parties can contact an ex- VERTRIEB and EWE TEL companies. As part of this project, we ternal ombudsman to report potential rule violations. The will provide employees with training about communicating ombudsman is committed to keeping this information secret, with customers, amend our correspondence with customers and may only release anonymised information about the case and optimise IT processes. to have it reviewed at the request of the person who reported the incident. We also research trends and analyse markets. We use post-contact surveys and customer satisfaction question- þ There were no complaints or sanctions of a monetary or naires to check whether our measures are having the desired non-monetary nature arising from non-compliance with laws result. This helps us to continuously identify areas where we and regulations during the reporting year. There were also no could improve. complaints related to the ecological impact of our activities >> þ G4-SO08, þ G4-EN34. CERTIFIED PROCESSES, AWARD-WINNING SERVICE CODE OF CONDUCT PROVIDES GUIDANCE Our telecommunications business area is ISO 9001 and ISO 10002-certified, showing that our quality management and EWE introduced a Group-wide code of conduct in 2012. It complaints management processes meet the demanding re- provides standards which our employees have to meet when quirements of our customers. The computer magazine CHIP dealing with customers, business partners or officials. These confirmed the high quality of the customer service provided standards cover issues like accepting gifts or invitations or the by our telecommunications division in 2014, with EWE’s DSL handling of information about the company and the property and landline service hotline judged to be “very good”. They and resources of the EWE Group. Every new employee is in- were particularly impressed by the availability of the hotline formed about compliance and our code of conduct. and how quickly they were able to speak to someone. BEING ACTIVE WHERE OUR CUSTOMERS ARE Energy customers also receive high quality service from EWE. The magazine gave this service area a “good” rating. Our customers contact us about five million times per year. The reviewers were particularly positive about our availabil- We endeavour to provide them in good time and in person ity, service and transparency. with a high level of service. We achieve this with a dense network of customer centres and service points in our regions – with more than 40 sites, this is one of EWE’s unique selling points. 56 EWE SUSTAINABILITY REPORT 2014 INCREASING CUSTOMER LOYALTY WITH OPENNESS AND TRANSPARENCY “It needs to be easy to understand how energy is supplied,” Heinz Schirmer brings this information to bear in the nu- said Heinz Schirmer, who started his eighteen-month ten- merous “energy chats” that he has. “I have been going up to ure on EWE’s Brandenburg customer advisory board in the people in the supermarket or on the street and asking them middle of last year. Here’s what he makes of the board’s first how satisfied they are with their electricity and gas suppli- three meetings: EWE pays close attention when he tells them er for years now. We talk about using modern technology in their home,” explained the 66-year-old. His takeaway from these chats? “People want to be involved. A lack of transparency leads to people making bad decisions and getting stuck in their ways.” If people feel like they’re being ignored, they tend to be more negative about wind farms, gas storage facilities and cable routes. Their choice of energy supplier then becomes based on price alone. Heinz Schirmer agrees that price is an important criterion, “but customers shouldn’t lose sight of the advantages that Heinz Schirmer, member of the EWE customer advisory board in Brandenburg come with using a regional energy provider.” For instance, customers can go into their local EWE customer centre to get advice about which tariff is right for them or find out about the latest technological developments. Regionality is a vital prerequisite for a transparent energy market. Heinz Schirmer frequently meets elderly and young people about what citizens want from their energy provider or are- who are stuck in their ways because of a lack of transparency. as where they do not have enough information or have pre- “Elderly people resign themselves because there’s nobody to conceived notions. EWE is also very open with the advisory help them understand all of the new technology and offerings board members about why it does what it does and provides that are available.” On the other hand, young people, he said, extensive information about the legal framework and energy take energy for granted and expect it to just work without policy. any issues. “If it doesn’t, then it’s someone else’s fault.” Both of these attitudes prevent energy from being used as well as 57 OUR AREAS OF ACTION: MARKET AND TRANSPARENCY Constructive criticism wanted: meeting of the customer advisory board in Wildau, Brandenburg it could be. That’s why Heinz Schirmer told the customer ad- CUSTOMER ADVISORY BOARDS visory board that “we have to increase awareness of how to use energy efficiently. EWE can help do this in Brandenburg.” According to Nadine Auras, who is responsible for the customer advisory boards in the Brandenburg/Rügen business region, “that’s exactly the kind of information that we want from our customer advisory boards.” EWE would then use the feedback from the advisory boards to get better. “They show us the areas where we need to be more transparent and communicate more with customers.” That’s why the advisory boards focus on straight talk rather than small talk when they meet, she said. The members of the advisory boards set the agenda. The first two meetings focused on the future of energy supply. Now service, customer loyalty and prices are on the docket. EWE has also been communicating with customers through three customer advisory boards in the Weser-Ems, Weser-Elbe and Brandenburg regions since 2011. The 15 members on each of the first advisory boards served for two years. As a result of their work, EWE made the pricing leaflets that it sends out with its bills easier to understand and developed new services for its customers like thermography checks. The second generation of advisory board members has been meeting since 2014. EWE found in the first phase that the advisory boards became less willing to be critical after a certain amount of time, so the members serve in their positions for 18 months. The number of board members was also increased from 15 to 20. Any customer can become an advisory board member. 58 EWE SUSTAINABILITY REPORT 2014 HEALTH AND OCCUPATIONAL SAFETY The health of our employees is integral to the success of our tral health management team. This gives employees the op- company. As an employer, we take responsibility for our portunity to play an active role in helping the company to be employees by helping them to stay healthy and making their healthy and allows us to take a more systematic approach to working environment as safe as possible. health management. Corporate Centre’s Working Group for Health has the same objective. This working group is made up of employees from the HR and HSE (Health, Safety & OUR OBJECTIVE Environment) Corporate Centre functions, EWE’s company health insurance scheme (BKK EWE), social welfare officers, TO OFFER A SAFE AND HEALTHY WORKING ENVIRON- members of the Works Council and the company’s doctors, MENT AT ALL TIMES all working together on ways to improve the health of our workforce. We want to make sure that our employees stay healthy and are always safe in their workplace. We have set up the healthy REGULAR TRAINING SESSIONS, SEMINARS AND WORK- employees rate1 as a central management tool so that we SHOPS can measure our progress in this area. þ The figure for 2014 was 95.3 per cent, which shows that we are already doing The EWE Group provides regular training sessions devoted extremely well in this area >> þ EWE-FK08, þ G4-LA06. We to health issues such as stress prevention. These events also want to improve this figure to 97 per cent by 2020. involve activities like yoga or Pilates. We provide seminars about time management and self-management to help employees and managers handle stress properly and realise their OUR WAY FORWARD personal limits. A SYSTEMATIC APPROACH TO HEALTH MANAGEMENT We are currently planning a management curriculum which will make managers aware of how important the health In 2014, we set up a central health management coordina- of their employees is. We will also be providing follow-up tion unit at the Corporate Centre level. The German Group seminars about topics like “healthy management”. This will companies also have coordinators who help to organise and help our managers to spot potential health issues which implement measures. EWE’s subsidiary BTC, for example, has could affect their employees and do something about them. introduced health scouts at its German sites. They serve as a point of contact between the sites’ employees and the cen1 — The healthy employee rate stands in opposition to the absence rate. This means that if the absence ratio is 3 per cent, the healthy employee rate is 97 per cent. The absence rate is the ratio of days of absence resulting from incapacity to work to the target number of working days assigned to the reporting period. This also includes annual leave. 59 OUR AREAS OF ACTION: HEALTH AND OCCUPATIONAL SAFETY þ REPORTABLE ACCIDENTS INCL. ACCIDENTS ON THE HEALTHY EATING AND DAY-TO-DAY FITNESS WAY TO WORK (RATE PER 1,000 EMPLOYEES ) 2 EWE picked up the issue of healthy eating in 2014 as part of the City of Oldenburg’s “Sustainable consumption - pleasure with a healthy conscience” initiative and provided sustainable meals at some of its canteens for a month. All of the 19.96 meals were prepared only with seasonal, fair-trade and regional products or ingredients from sustainable sources. In future, we want to make similar meals a part of our canteen’s 10.86 11.38 regular menus. 9.15 Fitness is also part of EWE’s approach to health management. BKK EWE launched a fresh initiative in March 2014 that encouraged employees to cycle to work. This is a fixed compo- 1.99 nent of the annual health programme. Around 100 people took part and switched to taking their bike for at least 20 business days. The winner was awarded a prize. The health programme was well received, with around 35 per cent of our EWE TOTAL 2014 EWE GERMANY 2014 EWE ABROAD 2014 þ G4-LA06 þ G4-LA06 þ G4-LA06 5-YEAR EWE AVERAGE3 5-YEAR AVERAGE OF THE EMPLOYER’S LIABILITY INSURANCE ASSOCIATION FOR ENERGY TEXTILES ELECTRONICS MEDIA PRODUCTS (2009–2013)4 employees taking part in the various initiatives we offered in 2014. OCCUPATIONAL HEALTH AND SAFETY INTEGRAL TO EWE 2 — In addition to the companies listed as part of the scope of the report (see p. 75), the accident indicators (indicator G4-LA06) include the companies BIBER GmbH, EnergieCampus GmbH and GSN Gebäudesicherheit Nord GmbH, which have around 150 employees. 3 — Not identical to the scope of the sustainability report (see p. 75). The EWE average does not include the following companies: BTC AG, BTC IT Services GmbH, EWE TEL, swb AG (including subsidiaries) and the Turkish and Polish EWE companies. 4 — Source: 2013 annual report of the Employer’s Liability Insurance Association for Energy Textiles Electronics Media Products (BG ETEM) EWE’s occupational health and safety is coordinated by the HSE Corporate Centre function. Each of the companies has occupational health and safety specialists who take care of our employees’ safety. They help managers to draw up safety requirements, such as how to operate equipment and machinery correctly or when to wear personal protective equipment, and work together to make sure they are complied with. > Continue on p. 62 60 EWE SUSTAINABILITY REPORT 2014 POWER PLANT CONSTRUCTION IN MITTELSBÜREN: PUTTING SAFETY FIRST On average, twice as many people have accidents on con- Jürgen Müller is the Head Safety Engineer at EWE’s subsidiary struction sites than anywhere else in the industrial and trade swb, which holds a majority 52 per cent stake in the Mittels- sectors. And it’s not hard to see how a major construction site büren gas and steam power plant. He believes that the site’s could be unsafe – heavy loads dangling overhead, trip hazards excellent safety record was primarily down to swb bringing three different approaches to occupational safety together: There were no serious accidents or accidents with long-term consequences over the course of the three-and-a-half-year construction project, which took more than 3.2 million man-hours. lurking everywhere, employees from different companies working together and a steady stream of vehicles bringing new materials. The construction site for the steam turbine power plant in Bremen-Mittelsbüren, on the other hand, was not an unsafe area where accidents were waiting to happen. There were no serious accidents or accidents with long-term consequences over the course of the three-and-a-half-year construction project, which took more than 3.2 million manhours. There were just eight workplace accidents that caused anyone to miss any time, amounting to 50 lost days in total. “At swb, we came at the issue from the traditional German angle of mitigating hazardous situations in advance; the consortium was headed up by General Electric (GE), which came from the Anglo-Saxon tradition of written codes of conduct; and GE’s Spanish partner Cobra came from the Southern European tradition of extremely cautious safety measures.” The team approves security measures. 61 OUR AREAS OF ACTION: HEALTH AND OCCUPATIONAL SAFETY Employees in the rescue-at-height team train to abseil with a rescue stretcher on the construction site. Training, monitoring and coordination were needed to imple- identify with our safety philosophy,” said Arantxa Casado and ment the shared safety philosophy – construction workers Cedric Moulin, speaking from experience. Because of this, the had to make themselves familiar with it online or using termi- Health and Safety Managers for Cobra and GE were generous nals on-site before they were allowed onto the construction with praise and handing out small rewards whenever anyone site. After passing a test about what they know, they were showed particular care for their own safety and the safety of issued additional instructions about site regulations, working their colleagues. at height and working in potentially explosive environments. The construction companies also met over 700 times over For Matthias Schaup, the Managing Director of the pow- the past three and a half years to coordinate their work and er plant company, the positive outcome shows that safety rule out putting each other at risk. training should focus on safety measures in future. According to the accident statistics of the Employer’s Liability Insurance Compliance with the rules was monitored on a daily basis. Association for Energy Textiles Electronics Media Products, Each company with more than 20 employees on the con- 30 per cent of all accidents were due to falling, slipping or struction site had to provide at least one safety officer. Safe- tripping. But hardly any accidents like these happened on the ty specialists from swb, GE and Cobra were always on site. construction site for the Mittelsbüren power plant. “These checks alone can’t guarantee that employees really 62 EWE SUSTAINABILITY REPORT 2014 > The occupational health and safety specialists work together with company doctors, safety officers and works 1.46 councils on occupational health and safety committees in þ injuries per 200,000 work hours5 in 2014 safety measures are kept up to date. These assessments in- >> þ G4-LA06 each Group company. They advise the management and executives of the subsidiaries on occupational safety, health and accident prevention. þ Management performs regular risk assessments to make sure that safety requirements and occupational health and volve evaluating safety measures and amending them if necessary >> þ TC-IO03. þ The low number of reportable work accidents (including accidents on the way to work) show 95.3 % that our occupational health and safety measures are effective. In 2014, there were 10.86 accidents per 1,000 employees2 >> þ G4-LA06. According to the Employer’s Liability Insurance Association for Energy Textiles Electronics Media Products, the industry average was 19.96 accidents per 1,000 employees between 2009 and 2013, almost twice as high. þ 2014 healthy employee rate >> þ EWE-FK08, þ G4-LA06 16.54 þ lost days per 200,000 work hours5 in 2014 >> þ G4-LA06 5 — The amount of working hours is equal to the total working time. These were calculated as either the number of hours worked or the number of planned hours less public holidays, annual leave and illness statistics. 63 OUR AREAS OF ACTION: HEALTH AND OCCUPATIONAL SAFETY EMPLOYEES AND EDUCATION EMPLOYEES AND EDUCATION Long-term retention of qualified employees is a vital part of We want to reduce this figure to 75 weekdays by 2020. The EWE’s success. Because we are involved in so many areas – national benchmark is around 60 days. When we set our tar- energy, telecommunications, information technology – EWE get, we calculated that the amount of time required to fill needs employees with a wide range of skills and expertise. The positions will rise across the sector between now and 2020 impact of demographic changes on the labour market is making because of the anticipated lack of qualified personnel. We it increasingly difficult for the company to attract specialists also took note of the fact that EWE generally advertises and retain them in the long-term. That’s why we are committed vacant positions internally first. EWE then advertises them to providing apprenticeships in line with our requirements and publicly if they can’t be filled internally. This tends to in- training our employees, in addition to recruiting qualified per- crease the amount of time needed to fill positions. sonnel for the future. We have a long-term human resources plan in place to keep OUR WAY FORWARD key expertise in the company. The economic situation has also put us in the challenging situation of having to cut 500 jobs by INCORPORATING DEMOGRAPHIC FACTORS 2017. We will strive to do this in a socially acceptable manner without redundancies for operational reasons. Demographic changes will transform the age structure of EWE’s workforce. That’s why we launched a demographics management system in 2014, through which we have derived OUR OBJECTIVE important information from an analysis of the age structures in the company. The age-related contraction of the workforce TO BE AN ATTRACTIVE EMPLOYER FOR OUR REGIONS will pick up pace significantly from 2020 onwards as people born in baby boom years go into retirement. In 2025, more Despite the challenging economic conditions currently facing than half of our employees will be over 50 years old. us, we want to be an employer who is in demand and able to shape the energy future with employees who perform well We have drawn up HR measures to keep expertise in the com- and possess relevant expertise and skills. þ We use the time pany and recruit new employees with an eye to the future. taken to fill positions as an indicator of how attractive we are We are implementing a Group-wide strategic human resourc- as an employer. This is the number of weekdays between a es planning system to make sure that we have the personnel position being advertised and the employment contract be- required to be successful as a business and to draw up human ing signed. In 2014, this number was 85.6 days. This calcula- resources programmes that will help us achieve this goal. We tion covers all internally and externally advertised jobs, with also want to establish new ways of working together, such the exception of apprentice, trainee and internship positions as making sure that teams are made up of mixed age groups. >> þ EWE-FK09. We want to be more attractive to specific target groups, in particular women, apprentices and young employees for non-academic and business divisions, and to promote the transfer of knowledge from older to younger employees. We 64 EWE SUSTAINABILITY REPORT 2014 want to set up our health, professional training and career programmes so that they are tailored to the various stages of life that every age group in the company is at. 2014 AWARDS We have been developing a brand identity as an employer since 2014. This brand identity will help employees to identify with the company and help us to attract qualified employees. “BERUFUNDFAMILIE” INVESTING IN PROFESSIONAL TRAINING (CAREER AND FAMILY) AND APPRENTICESHIPS swb recertified EWE is training around 320 young people in a wide range of with “berufundfamilie” audit professions. They include industrial engineering electricians, IT specialists, home economists and wastewater technology specialists. The company has another 95 young adults going through parallel vocational training and degree programmes in electrical engineering, business administration or industrial engineering and management. EWE’s EnergieCampus is a “GREAT PLACE TO WORK” central education facility in Oldenburg which provides workshops, classrooms and accommodation. It allows apprentices Bursagaz named from outside the Oldenburg area to stay on the campus in best employer company-owned accommodation. The EnergieCampus provides them with mentoring and specialist training. > p. 66 “A place to live and learn” We also help students from a variety of disciplines with their Bachelor’s or Master’s thesis. We provide a 24 month trainee “GLEICH-WICHTIG” (EQUALLY IMPORTANT) EWE Polska named fairest employer in “Gleich-Wichtig” competition programme for university graduates. 65 OUR AREAS OF ACTION: EMPLOYEES AND EDUCATION AGE STRUCTURE OF OUR WORKFORCE (in %) þ We provide our employees with regular training at the þ Group’s professional training centre. We provide training for current and future managers at the EWE Academy. The management programme’s strong focus on strategy and entrepreneurship helps participants to develop new solutions and feed their suggestions into their company >> þ G4-LA10. BALANCING CAREER AND FAMILY EWE wants to enable its employees to balance the demands 2014 of work and family. Flexible working hours, healthcare and retirement benefits, childcare at the Oldenburg site and working time accounts in some companies are just some of the measures which EWE uses to create a healthy working environment. SAFEGUARDING THE RIGHTS OF EMPLOYEES ≤ 30 YEARS MALE 31–50 YEARS MALE > 50 YEARS MALE ≤ 30 YEARS FEMALE 31–50 YEARS FEMALE > 50 YEARS FEMALE We place great importance on treating all employees equally. Works Councils have been set up in all German EWE companies to ensure that the rights of employees are safeguarded and their concerns are given a voice. þ The right to freedom of association and collective bargaining is guaranteed in all of our German companies >> þ G4-HR04. þ Whenever there are significant operational changes, EWE notifies its employ- Total Male Female ≤ 30 years 17.6 16.0 21.4 31–50 years 59.4 58.5 61.7 > 50 years 23.0 25.5 16.9 þ G4-LA12 ees within the legally required country-specific timescales >> þ G4-LA04. 66 EWE SUSTAINABILITY REPORT 2014 A PLACE TO LIVE AND LEARN Ricardo Breßler is learning at EWE too – namely how to play best offer around.” Now, after spending just under a year on guitar. The trainee IT systems technician lives on the compa- campus, he says, “No one else can offer what I get here – ny’s EnergieCampus in Oldenburg and does his training in the well-rounded training in the workshops, a great room, good workshops that are right next door. On Thursday evenings he food and a brilliant range of leisure activities that they have plays music with a music teacher employed by EWE and other clearly put a lot of thought into.” residents who came to the Northwest to train with EWE. 95 teenagers and young adults live on the campus. All of the Ricardo Breßler grew up 500 kilometres to the east, in Frank- rooms have a generous bathroom and high-speed internet. furt an der Oder. When he came across EWE’s advertisement Breakfast, lunch and dinner are served in the sunny canteen in the newspaper, one thing was clear to him: “That’s the with a view of the green Hunte lowlands. Rolf Röttgers, team Trainee IT systems technician Ricardo Breßler learns in the EWE workshops. 67 OUR AREAS OF ACTION: EMPLOYEES AND EDUCATION leader in charge of technical training, explains: “EWE can’t provide training for technical vocations everywhere because of the high requirements for our training setup. However, we look for apprentices who come from all of our business regions, because they are expected to go back there to work when their training is complete.” That’s why EWE provides a single location for apprentices to live and train at in Olden- Proactive ways to switch off – music lessons are some of the leisure activities available on the campus. burg, he said. This approach also means that parents don’t have to worry about how their children are going to get to a workplace that might be a long distance away from where mentors are responsible for organising recreational activities. they live. They are also available around the clock for the young adults to talk to. “We decide what we do in our free time, but EWE “No one else can offer what I get here.” Ricardo Breßler doesn’t just leave us to our own devices when the working day is over,” said Ricardo Breßler, summing up campus life. The 18-year-old likes the campus, but is particularly appreciative of the quality of his training. The company is usually among the best-rated training institutions when Chambers of Industry publish their reviews. The workshops are fully equipped and the training staff is completely committed to the next generation coming through. If you think that the Trainee IT system technicians spend a lot of their working campus doesn’t give the young trainees a realistic experience hours in front of a screen. “We spend a lot of our free time of working life, think again. “The workshop is a service pro- there as well,” said Ricardo Breßler. The campus provides vider for the companies in the EWE Group,” said Rolf Rött- trainees with proactive ways to switch off, like cooking cours- gers. “We invoice our clients meticulously.” For example, the es or music lessons. “Playing guitar is a way to focus on some- campus has manufactured control cabinets for the alpha ven- thing completely different.” Trainees also use the Facebook tus and Riffgat wind farms. group to arrange times to meet up to play sports, cards or billiards, or to watch TV together in the common rooms. Four 68 EWE SUSTAINABILITY REPORT 2014 DATA PROTECTION AND INFORMATION SECURITY Treating customer and company data as confidential is an inte- OUR WAY FORWARD gral part of our company policy and processes. In these digital times, we use an information management system that is GUARANTEEING DATA PROTECTION aligned with the security and compliance requirements of our company. It covers the areas of data protection, information The data protection officers of our individual companies are security and the unbundling of the Network and Sales business subject to especially stringent confidentiality requirements areas. and are responsible for ensuring that the requirements of German data protection legislation and other data protection regulations are complied with. We have a Group functio- OUR OBJECTIVE nal division policy devoted to data protection which governs tasks, personal duties and responsibilities. Our data protec- TO BE A RELIABLE PARTNER FOR DATA AND tion officers discuss issues on a regular basis. They evaluate INFORM ATION SECURITY new IT projects to determine the security of customer data, discuss the impact that new data protection legislation will We provide our employees with regular training about how have on the Group, and identify ways in which existing struc- to be a trustworthy custodian of data in order to ensure that tures can be optimised. þ And they have been successful – we are a reliable partner for our customers. þ We have set EWE had no substantiated complaints regarding breaches of ourselves the target of implementing standardised e-lear- data protection in 2014 >> þ G4-PR08. ning modules for data protection, information security and unbundling by 2020 >> þ EWE-FK10. These are to be made available to all companies in which training about one or more of these three issues is mandatory. We want to reach over 85 per cent of all our employees with the e-learning measure. According to recognised models for evaluating company processes, this is the maximum proportion of our employees that we can practically achieve. Our calculations also incorporated the fact that achieving a rate of 100 per cent is impossible due to employees being away because of illness or holiday or fluctuating employee numbers. 69 OUR AREAS OF ACTION: DATA PROTECTION AND INFORMATION SECURITY PROTECT THE GROUP AND EMPLOYEES WITH MAKING SURE THAT NETWORK AND SALES INFORMATION SECURITY ARE UNBUNDLED Group-wide information security is managed by the central The Energy Economy Law (EnWG) requires that the network information security officer in the Corporate Centre, with and sales divisions of utility companies must be kept separa- support provided by local information security officers in te to ensure that networks are operated neutrally and that each business area. They continuously review the effective- network access is granted on a non-discriminatory basis in ness of our security measures, including how effectively Germany. The purpose of this is to unbundle network busi- they protect us against cyber attacks. In addition to imple- ness as a monopoly from the electricity and gas businesses menting legal requirements in the companies, the infor- (which are in competition with each other) from a company mation security officers are responsible for improving the law, operational, information and accounting perspective. Group- wide information security management system in This includes keeping customer data separate, as such infor- accordance with ISO 27001 requirements. They also provide mation may not be exchanged between the network unit and advice about innovations related to the digitalisation of the the sales unit of a company. This is to avoid distorting com- energy economy. petition. EWE also takes part in working groups, federal government EWE has set up a comprehensive equal access programme committees and industry associations so that it can take an which provides binding specifications for measures desig- active role in shaping general legal requirements and industry ned to ensure that network business is conducted on a non- standards. discriminatory basis. Equal access officers provide the employees of our network companies with regular training and are available for them to contact. The annual equal access reports of our subsidiaries EWE NETZ, wesernetz Bremen, wesernetz Bremerhaven, EWE GASSPEICHER and Gastransport Nord GmbH document our progress. We apply labour law sanctions when requirements are violated. 70 EWE SUSTAINABILITY REPORT 2014 EWE’S DATA CENTRES: KEEPING INFORMATION SAFE IN OLDENBURG The data on the servers of EWE’s two data centres in Ol He added that hacking poses a greater danger to the data denburg lies safe behind a series of firewalls, steel doors and than unauthorised individuals trying to physically access the access codes. EWE uses these data centres to store internal technical systems. Because of this, servers which only need data as well as information about its private and business to be available through a company intranet are not connect- customers. Personal information is also protected by Ger- ed to the internet. Professional firewalls are used to protect many’s strict data protection laws – a major advantage of everything that can be accessed through the internet. These firewalls are regularly tested by EWE specialists and their “In this country, legislation is based on the principle that information belongs to the person that provides it.” manufacturers. In front of these firewalls is a system that monitors data traffic for irregularities and deflects suspicious attempts to make a connection. Ingmar Schmidt keeping the data within the country. “In this country,” says Ingmar Schmidt, the Data Protection and Information Security Officer at EWE’s Group subsidiary EWE TEL, “legislation is based on the principle that information belongs to the person that provides it.” In some other countries, information becomes the property of whoever receives it. EWE provides its customers with a regional partnership as well as more security than a lot of international clouds. “For example, EWE can draw up individual agreements with its customers for the storage of company secrets,” said Ingmar Schmidt. These don’t enjoy quite the same level of protection as personal information under German law. Ingmar Schmidt, the Data Protection and Information Security Officer at EWE TEL, checks one of the servers. 71 OUR AREAS OF ACTION: DATA PROTECTION AND INFORMATION SECURITY Suspicious attempts to make a connection are deflected. The data in EWE’s data centre is well protected. Power cuts and fires can also make data insecure or inacces- by the German Society for the Certification of Management sible. If there is a power cut, the data centres will fall back to Systems and TÜV. “But that won’t be that much help to the battery power until the generator at the centre starts pro- customer if they don’t take care online.” That’s why EWE pro- viding electricity. This generator uses a diesel motor capable vides customers with detailed advice on how they can pro- of powering a sizeable cargo ship. A second back-up power tect themselves online. system is available to cover all eventualities. A gas system is on hand to quickly extinguish any fire that breaks out in the data centre. Any data that has to be available permanently is mirrored and stored on multiple servers. “Having two data centres means that EWE can keep copies of particularly sensitive information in different places,” said Ingmar Schmidt to emphasise the extent of EWE’s services. The data centres are also protected against break-ins. Cameras monitor every way into the data centres, and the buildings can only be accessed through a series of steel doors and secure airlocks. “Our security measures comply with the latest standards,” said Ingmar Schmidt, summing it up. This is backed up by the fact that EWE TEL is regularly certified 72 EWE SUSTAINABILITY REPORT 2014 ABOUT THIS REPORT 73 ABOUT THIS REPORT OUR FIRST SUSTAINABILITY REPORT survey-based materiality analysis to identify the issues that are relevant for our companies and our stakeholders. The re- “Creating Value for our Region” is EWE’s first sustainability port focuses on our ten areas of action: Security of supply report. In conjunction with EWE AG’s 2014 annual report, the and network stability, innovation and product responsibili- report provides a comprehensive overview of our company’s ty, climate protection and generation, environmental man- performance on the basis of financial and non-financial in- agement and resource efficiency, regional responsibility, formation. supply chain, market and transparency, health and occupational safety, employees and education, and data protection The information provided in the sustainability report covers and information security. The structure of the report, which economic, environmental and social issues. Please refer to is broken down by sustainability action areas, reflects the our annual report for detailed information about the EWE main economic, environmental and social issues for the EWE Group’s performance and economic situation. Group. þ Issues that we identified as being relevant for the success of our business with the help of our stakeholders þ This report was prepared in accordance with the Glob- were allocated to each area of action >> þ G4-18. al Reporting Initiative’s (GRI) G4 Sustainability Reporting Guidelines, as well as the guidance specific to the energy and telecommunications sectors. We believe that it meets the SCOPE OF THE REPORT requirements of the “Core” application level. In future, EWE AG’s sustainability report will be published annually >> þ þ The report covers the 2014 financial year (1 January to 31 G4-32; þ G4-30. December) >> þ G4-28. The performance indicators in the report relate to this period. Any relevant, qualitative infor- The indicators in the GRI Index (p. 82) have been audited by mation that went beyond 2014 and was available by the pub- Ernst & Young GmbH. þ Their findings are provided in the lication date has been included in the report. independent assurance report on page 92 >> þ G4-33. þ The information and key figures come from the EWE Group companies listed in the Appendix (measured by strategic relCONTENTS AND STRUCTURE evance and coverage of at least 95 per cent of total generated sales). Any deviations from the scope of the report are Detailed information about the principles of our sustaina- indicated at the relevant location. This scope does not apply bility management system is provided in “Sustainability – to the “Company Profile” section (p. 10) >> þ G4-17. part of our Group strategy”, along with the targets (p. 21) by which we measure our sustainability efforts. When preparing this report, we collated the sustainability issues that were potentially significant for EWE in line with the GRI’s reporting principles and used a multi-stage 74 EWE SUSTAINABILITY REPORT 2014 FACTS AND FIGURES 75 FACTS AND FIGURES APPENDIX OF INDICATORS The Appendix covers indicators which are not mentioned in the SECURITY OF SUPPLY AND NETWORK STABILITY areas of action sections. AREA OF ACTION þ G4-EU30 — Average availability of power plants (in %) ABOUT THIS REPORT þ G4-17 — Scope of accounting 1 The sustainability report focuses on the main organisations, measured by strategic relevance and coverage of at least 95 per cent of the sales of the EWE Group. BTC Business Technology Consulting AG, BTC IT Services Total generation 87.71 Hard coal 83.63 Blast furnace gas/converter gas Natural gas 95.71 0 2 Light oil 97.53 Total disposal 90.20 GmbH, Bursagaz Bursa Şehiriçi Doğalgaz Dağıtım Ticaret ve Taahhüt A.Ş., EWE AG, EWE VERTRIEB GmbH, EWE Energia sp. z o.o., EWE ERNEUERBARE ENERGIEN GmbH, EWE 2 — The gas-powered block 14 of the Bremen-Hastedt CHP plant is currently mothballed. GASSPEICHER GmbH, EWE NETZ GmbH, EWE Offshore Service & Solutions GmbH, EWE Polska Sp. z o.o., EWE swb ISIS GmbH, EWE TEL GmbH, EWE TRADING GmbH, EWE WASSER GmbH, Gastransport Nord GmbH, Kayserigaz þ G4-EU12 — Electricity network losses Our losses in the German medium and low-voltage network are 2.1 per cent Kayseri Doğalgaz Dağıtım Pazarlama ve Ticaret A.Ş., swb Abrechnungsservice GmbH, swb AG, swb Bremerhaven GmbH, swb CREA GmbH, swb Entsorgung GmbH & Co. KG, swb Erzeugung AG & Co. KG, swb Erzeugung und Entsorgung AG & Co. KG, swb Services AG & Co. KG, swb Vertrieb Bremen GmbH, swb Vertrieb Bremerhaven GmbH & Co. KG, wesernetz Bremen GmbH, wesernetz Bremerhaven GmbH 1 — Please see page 167 of the 2014 annual report for a comprehensive list of all the companies that were consolidated in the financial statements. 76 EWE SUSTAINABILITY REPORT 2014 CLIMATE PROTECTION AND GENERATION Conventional (MW electric) AREA OF ACTION Hard coal 553 Blast furnace gas/converter gas 200 Natural gas 306 Light oil 86 Waste to energy 75 þ G4-EU01 — Installed electrical capacity (in MW thermal) 1,220 Installed thermal capacity3 746 Hard coal 178 Natural gas 445 Conventional (MW thermal)3 746 Waste to energy 123 Hard coal 178 Natural gas 445 Waste to energy 123 3 — Indicator is recorded at all major combustion and gas turbine facilities (in accordance with 13th German Immission Control Directive) and all facilities involved in burning waste (in accordance with 17th German Immission Control Directive). þ G4-EU11 — Generation efficiency of þ G4-EU02 — Net energy output thermal plants3 (in %) (in GWh) Heat generation by primary fuel resource4 1,307 Average generation efficiency of thermal plants Hard coal 505 Hard coal 44 Natural gas 365 Blast furnace gas 38 Waste to energy 262 Waste 29 Bio natural gas 139 Light oil 11 Other (biogas, biogenic replacement fuels, fuel oil, sewage gas) 36 4 — Contrary to indicator G4-EU01, this also includes heat generation from combined heat and power plants. Electrical efficiency of thermal power plants Hard coal 37 Blast furnace gas 38 Light oil 11 þ G4-EU05 — Number of CO2 emissions allowances þ G4-EN20 — Emissions of ozone-depleting substances Total CO2 certificates Allocated CO2 certificates 139,319 Auctioned CO2 certificates 2,047,053 Proportion of granted CO2 certificates (in %) (ODS) 2,186,372 6.4 EWE did not use any ozone-depleting substances. þ G4-EN21 — N itrogen oxides, sulphur oxides and other air emissions 4 þ G4-EU10 — Planned generation capacity Emissions from generation facilities (in kg/year) Renewables (MW electric) 366 Onshore wind 215 Offshore wind 137 Other (biogas, photovoltaics, hydroelectric) 14 Nitrogen oxides (NOx) 1,553,353 Sulphur dioxide (SO2) 1,443,324 Dust 135,663 Fine dust – PM10 (93%) 122,097 Fine dust – PM2.5 (60%) 81,398 77 FACTS AND FIGURES Chalk Emissions from waste disposal facilities (in kg/year) 29,759 Mg Heavy fuel oil 1,523 Mg 55,147 Fuel oil 1,765 Mg Dust 5,302 Waste Fine dust – PM10 (93%) 4,771 Renewables Fine dust – PM2.5 (60%) 3,181 Biomass Hydrogen chloride (HCl) 41,347 Carbon monoxide (CO) 101,653 Nitrogen oxides (NOx) 909,556 Sulphur dioxide (SO2) Total carbon (Ctotal) 2,931 442,190 Mg 3,168 Mg Waste 442,190 Mg Raw biogas 13,973,924 Nm³ Biomethane 34,396,527 Nm³ Vegetable oil Emissions from generation facilities (in kg/MWh) Nitrogen oxides (NOx) 0.416 Sewage gas Sulphur dioxide (SO2) 0.386 Wood Dust 0.036 Fine dust – PM10 (93%) 0.033 Fine dust – PM2.5 (60%) 0.022 Emissions from waste disposal facilities (in kg/MWh) 0 Mg 137,603 Nm³ 204 Mg þ G4-EN22 — Wastewater by quality and destination (in m3) Brine 1,456,541 Nitrogen oxides (NOx) 1.211 Wastewater at treatment sites5 Sulphur dioxide (SO2) 0.073 Process water 205,640 Dust 0.007 Cooling water 647,522,864 Fine dust – PM10 (93%) 0.006 Fine dust – PM2.5 (60%) 0.004 Hydrogen chloride (HCl) 0.055 Carbon monoxide (CO) 0.135 Total carbon (Ctotal) 0.004 16,219,236 5 — This is purified wastewater that is fed directly into watercourses. REGIONAL RESPONSIBILITY AREA OF ACTION þ G4-EU22 — N umber of people displaced and ENVIRONMENTAL MANAGEMENT AND RESOURCE EFFICIENCY AREA OF ACTION Nobody was displaced and no compensation was paid during the reporting period. þ G4-EN01 — M aterials used by weight or volume (fuels) Non-renewables Blast furnace gas Converter gas Hard coal Natural gas RF, non-bio compensation 2,916,424,300 Nm³ 28,431,600 Nm³ 914,895 Mg 63,241,188 Nm³ 0 Mg 78 EWE SUSTAINABILITY REPORT 2014 MARKET AND TRANSPARENCY þ G4-SO06 — Total value of political contributions AREA OF ACTION An internal Group directive forbids EWE from making political donations. þ G4-EN29 — F ines and penalties for non-compliance þ G4-PR05 — Results of surveys measuring customer with environmental laws and regulations satisfaction (index) There were no fines and penalties incurred for non-compliance with environmental laws and regulations in the reporting period. Brand level 67.2 (energy); 75.8 (TC) Main business region 68.8 (energy); 76.0 (TC) þ G4-PR09 — F ines for non-compliance with laws and regulations concerning the provision and use of products and services HEALTH AND OCCUPATIONAL SAFETY There were no fines for non-compliance with laws and regulations concerning the provision and use of products and services in the reporting period. AREA OF ACTION þ G4-LA06 — L ost days due to illness, number of injuries, þ G4-SO04 — Communication and training on number of work-related fatalities 6 anti-corruption policies and procedures Total number of governing body members having received information 5 Percentage of governing body members having received information 100 Total number of employees having received information ~2,100 (taking double clicks into account) Percentage of employees having received information ~24 Total number of business partners having received information The supplier code of conduct will be introduced in 2015 Percentage of business partners having received information The supplier code of conduct will be introduced in 2015 Total number of governing body members having received training 5 Percentage of governing body members having received training 100 Total number of employees having received training New employees having received training Enquiries to the compliance officer Enquiries to compliance representatives 84 144 59 Percentage of employees having received training New employees having received training 30 Enquiries to the compliance officer 2 Enquiries to compliance representatives 1 Work-related fatalities (number of deaths) 0 Germany 0 Overseas 0 Injury rate (number of injuries per 200,000 work hours)7 1.46 Germany 1.55 Overseas 0.21 Lost day rate (number of lost days per 200,000 work hours)7 16.54 Germany 17.73 Overseas 0.85 6 — Excluding subcontractors and supervised workers (external temporary staffing); information about work accidents without breakdown by gender. In addition to the companies listed as part of the scope of the report, the accident indicators (indicator G4LA06) include the companies BIBER GmbH, EnergieCampus GmbH and GSN Gebäudesicherheit Nord GmbH, which have around 150 employees. 7 — The amount of working hours is equal to the total working time. These were calculated as either the number of hours worked or the number of planned hours less public holidays, annual leave and illness statistics. 79 FACTS AND FIGURES EMPLOYEES AND EDUCATION AREA OF ACTION þ G4-10 — Workforce structure Total number of employees by employment contract and gender8 9,099 Permanent 7,683 of which female 2,105 of which male 5,578 Temporary 440 of which female 163 of which male 277 Active phased early retirement of which female of which male 17 1 16 Special employee groups (trainees, assistants, apprentices) 605 of which female 170 of which male 435 Inactive (passive phased early retirement, early retirement, parental leave, military service, civil service) 354 of which female 166 of which male 188 Total number of employees by employment type and gender8 9,099 Full-time 7,217 of which female 1,496 of which male 5,721 Part-time 923 of which female 773 of which male 150 Special employee groups (trainees, assistants, apprentices) 605 of which female 170 of which male 435 Inactive (passive phased early retirement, early retirement, parental leave, military service, civil service) 354 of which female 166 of which male 188 Total number of employees by direct employment/supervised workers and by gender 9,250 Employees (incl. Board of Management/Boards of Directors and special employee groups) 9,099 of which female 2,605 of which male 6,494 Supervised workers 151 9 of which female of which male Total number of employees by region and gender 61 90 8 9,099 Germany 8,596 of which female 2,440 of which male 6,156 Overseas 503 of which female 165 of which male 338 8 — Differences in the number of employees compared to the information in the annual report are due to differences in the scope of accounting (cf. G4-17, p. 75) and the reporting date analysis performed on 31.12.2014 which serves as the foundation for the sustainability report. 9 — Personnel hired via third parties (e.g. temporary employment agencies) to render services for a German EWE company according to the German Temporary Employment Act (AÜG). þ G4-11 — Employees covered by collective bargaining agreements A total of 8,402 employees were covered by collective bargaining agreements in the reporting period. 80 EWE SUSTAINABILITY REPORT 2014 þ G4-LA01 — T otal number and rates of new employee hires and employee turnover by age group, gender and region Total employee turnover by region and gender 823 9.0 Germany 780 8.5 of which female 235 2.6 of which male 545 5.9 Overseas 43 0.5 of which female 15 0.2 of which male 28 0.3 Number % Total number of new employee hires by age group and gender 839 9.2 ≤ 30 years 506 5.6 of which female 183 2.0 of which male 323 3.6 277 3.0 65 0.7 Average length of employment of employees who have left by age group 212 2.3 ≤ 30 years 2.5 > 50 years 56 0.6 of which female 1.4 of which female 14 0.2 of which male 2.4 of which male 42 0.4 31–50 years Total number of new employee hires by region and gender 839 9.2 Germany 787 8.6 of which female 249 2.7 of which male 538 5.9 Overseas 52 0.6 of which female 13 0.2 of which male 39 0.4 Total employee turnover by age group and gender 823 9.0 ≤ 30 years 382 4.2 of which female 135 1.5 of which male 247 2.7 290 3.2 88 1.0 202 2.2 151 1.7 Percentage of employees who can retire in the next 5 to 10 years by country 27 0.3 Germany 9.6 124 1.4 Overseas 0.6 31–50 years of which female of which male 31–50 years of which female of which male > 50 years of which female of which male Years 17.7 12.7 of which female of which male 7.7 13.0 > 50 years 27.3 of which female 14.3 of which male 28.2 þ G4-EU15 — P ercentage of employees eligible to retire in the next 5 to 10 years (in %) Percentage of employees who can retire in the next 5 to 10 years by job category 10.2 Management employees 0.5 Employees above the general pay scale 0.7 Employees on pay scale 7.5 Non-pay-scale employees 1.5 10.2 81 FACTS AND FIGURES þ G4-LA03 — Return to work and retention rates after parental leave Employees entitled to parental leave 9,099 of which female 2,605 of which male 6,494 Total number of employees that took parental leave 357 of which female 182 of which male 175 Total number of employees who returned to work after parental leave ended 236 of which female 63 of which male 173 þ G4-LA12 — Composition of governance bodies and breakdown of employees per employee category according to gender and age group (in %) Breakdown of employees by job category, gender and age group Employees on pay scale 62.2 of which male 44.3 ≤ 30 years 31–50 years 22.6 > 50 years 13.1 of which female 17.9 ≤ 30 years 31–50 years > 50 years 8.6 4.1 10.1 3.7 Non-pay-scale employees 28.2 of which male 18.9 ≤ 30 years 2.7 31–50 years > 50 years 2.6 of which female 9.3 ≤ 30 years 2.0 31–50 years 6.4 > 50 years 0.9 13.6 Management employees 2.2 Breakdown of Supervisory Board members by age group and gender of which male 2.0 of which ≤ 30 years old 0.0 ≤ 30 years 0.0 female 0.0 31–50 years 1.3 male 0.0 > 50 years 0.7 of which 31–50 years old of which female 0.2 female ≤ 30 years 0.0 male 10.0 31–50 years 0.2 of which > 50 years old 90.0 > 50 years 0.0 female Employees above the general pay scale 7.4 male of which male 6.1 ≤ 30 years 0.1 31–50 years 4.2 > 50 years 1.7 of which female 1.3 ≤ 30 years 0.0 31–50 years 1.1 > 50 years 0.2 10.0 0.0 5.0 85.0 þ G4-HR03 — Total number of incidents of discrimination and corrective actions taken Number of incidents of discrimination and actions taken10 7 10 — Mutually agreeable solutions were found for all incidents listed here. The action taken in each individual situation is not reported for data protection purposes. 82 EWE SUSTAINABILITY REPORT 2014 GRI INDEX GENERAL STANDARD DISCLOSURES Indicator Short name of the indicator Page Externally audited1 G4-01 Foreword by the Group Board of Management 9 - G4-03 Name of the organisation 12 - G4-04 Primary brands, products, services 14 - G4-05 Location of organisation's headquarters 12 - G4-06 Number and names of countries where the organisation operates 11 - G4-07 Nature of ownership and legal form 12 - G4-08 Markets served 11 - G4-09 Scale of the organisation 13 þ p. 92–93 G4-10 Workforce structure 79 þ p. 92–93 G4-11 Employees covered by collective bargaining agreements 79 þ p. 92–93 G4-12 Description of supply chain 51 - G4-13 Significant changes during the reporting period regarding ownership As this is the first report, no statement can be made with regard to this in this year. - G4-14 Precautionary approach 14 - G4-15 Support for external initiatives 22 - G4-16 Memberships in associations and advocacy organisations 22 - G4-EU01 Installed electrical capacity 35, 76 þ p. 92–93 G4-EU02 Net energy output 35, 76 þ p. 92–93 G4-EU03 Number of electricity connections and electricity customers 11, 25 þ p. 92–93 G4-EU04 Electricity network length3 25 þ p. 92–93 G4-EU05 Number of CO2 emissions allowances 76 þ p. 92–93 G4-17 Scope of accounting 73, 75 þ p. 92–93 G4-18 Process for defining report content 20, 73 þ p. 92–93 2 1 — The information marked with “þ” was audited by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft in the 2014 financial year. Please refer to the independent assurance report on page 92–93. 2 — Also includes domestic gas connections and number of gas and telecommunications customers. The Energy Economy Law (EnWG) governs the separation of network and sales for electricity and gas. 3 — Also includes network lengths for gas and telecommunications. 83 FACTS AND FIGURES GENERAL STANDARD DISCLOSURES Indicator Short name of the indicator Page Main material Aspects of the report The most important issues for the EWE Group were identified using a materiality analysis and are listed in the GRI Index. Aspect Boundary within the organisation Aspects which have a material economic, ecological or social impact within the organisation and are listed in the GRI Index are generally considered relevant for the companies defined in G4-17 (scope of accounting). Differences betþ p. 92–93 ween individual companies are highlighted in the report. G4-21 Aspect Boundary outside the organisation Relevant aspects within the organisation which EWE also addresses and manages in partnership with external stakeþ p. 92–93 holders are highlighted in the GRI Index. G4-22 Restatements of information provided in previous reports As this is the first report, no statement can be made with regard to this in this year. - G4-23 Changes to Aspect Boundaries compared to previous reports As this is the first report, no statement can be made with regard to this in this year. - G4-24 Stakeholders engaged 18, 20 þ p. 92–93 G4-25 Selection of stakeholders 18 þ p. 92–93 G4-26 Engagement of stakeholders 20, 22 þ p. 92–93 G4-27 Concerns raised by stakeholders 18, 20 þ p. 92–93 G4-28 Reporting period 73 þ p. 92–93 G4-29 Date of most recent previous report As this is the first report, no statement can be made with regard to this in this year. - G4-30 Reporting cycle 73 þ p. 92–93 G4-31 Contact 94 þ p. 92–93 G4-32 Meets the requirements of the „In accordance“-Core option 73 þ p. 92–93 G4-33 External assurance 73 þ p. 92–93 G4-34 Governance structure including responsibility for sustainability 12, 20, 21 - G4-56 Values, principles and codes of conduct 18 - G4-19 G4-20 Externally audited1 þ p. 92–93 SPECIFIC STANDARD DISCLOSURES Indicator Short name of the indicator Page Omissions Reason for omissions Externally audited1 CATEGORY: ECONOMIC Aspect: Economic Performance (Aspect Boundary within EWE)4 DMA 11–14, 44–49 - G4-EC01 Direct economic value generated and distributed 47 - - þ p. 92–93 EWE-ZA01 Research and development costs5 30 - - þ p. 92–93 4 — The Aspect Boundaries are hereinafter allocated to all aspects contained in the GRI Index. 5 — This is additional information provided voluntarily by EWE. 84 EWE SUSTAINABILITY REPORT 2014 SPECIFIC STANDARD DISCLOSURES Indicator Short name of the indicator Page Omissions Reason for omissions Externally audited1 Aspect: Indirect Economic Impacts (Aspect Boundary within EWE)6 DMA G4-EC08 44–49 Type and extent of significant 45 indirect economic impacts - - þ p. 92–93 Aspect: Procurement Practices (Aspect Boundary within EWE) DMA G4-EC09 50–53 Proportion of spending on local suppliers 51 GRI term “local” replaced with “regional” Standard EWE Group wording þ p. 92–93 Aspect: Availability and Reliability (Aspect Boundary within EWE) DMA G4-EU106 34–39 Planned generation capacity 76 Without comparing planned output with forecast demand Not a focus for German market þ p. 92–93 Aspect: System Efficiency (Aspect Boundary within EWE) DMA 24–28; 34–39 - G4-EU11 Generation efficiency of thermal plants 76 - - þ p. 92–93 G4-EU12 Electricity network losses 75 - - þ p. 92–93 CATEGORY: ENVIRONMENTAL Aspect: Materials (Aspect Boundary within EWE) DMA G4-EN01 40–43 Materials used by weight or volume (fuels) 77 - - þ p. 92–93 Aspect: Energy (Aspect Boundary within EWE) DMA G4-EN03 40–43 Energy consumption within the organisation 41 Limited to fleet and building management A Group-wide report is being prepared. þ p. 92–93 Aspect: Biodiversity (Aspect Boundary within EWE) DMA 34–39 - 1 — The information marked with “þ” was audited by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft in the 2014 financial year. Please refer to the independent assurance report on page 92–93. 6 — Indicators with the abbreviation EU (in accordance with GRI G4) are relevant for the electricity sector. 85 FACTS AND FIGURES SPECIFIC STANDARD DISCLOSURES Indicator G4-EN11 Short name of the indicator Sites in protected areas G4-EN12 Impacts of business activities on biodiversity G4-EU13 Biodiversity of protected areas compared to bio diversity of affected areas Page Omissions Reason for omissions Externally audited1 36, 37 Limited to some sites in northwest Germany and companies with potential material impact on the environment A Group-wide report has not been prepared because our activities have had very little impact þ p. 92–93 on biodiversity. 36, 37 Limited to some sites in northwest Germany and companies with potential material impact on the environment A Group-wide report has not been prepared because our activities have had very little impact þ p. 92–93 on biodiversity. 36, 37 Limited to some sites in northwest Germany and companies with potential material impact on the environment A Group-wide report has not been prepared because our activities have had very little impact þ p. 92–93 on biodiversity. Aspect: Emissions (Aspect Boundary within and outside EWE) DMA 34–39 G4-EN15 Direct CO2 emissions G4-EN18 CO2 emissions in grams per generated kilowatt hour of electricity (CO2 emissions intensity) 37 34 Limited to electricity and heat generation facilities Other facilities and emissions are þ p. 92–93 of minor importance. Limited to electricity and heat generation facilities Other facilities and emissions are of minor importance or the report is currently in preparation (scope 2) or the data is not currently collected (scope 3). þ p. 92–93 þ p. 92–93 G4-EN19 Reduction of CO2 emissions 37 Limited to electricity and heat generation facilities Other facilities and emissions are of minor importance or the report is currently in preparation (scope 2) or the data is not currently collected (scope 3). G4-EN20 Emissions of ozone-depleting substances (ODS) 76 - - þ p. 92–93 G4-EN21 Nitrogen oxides, sulphur oxides and other air emissions 76 - - þ p. 92–93 Aspect: Effluents and Waste (Aspect Boundary within EWE) DMA G4-EN22 40–43 Wastewater by quality and destination 77 - - þ p. 92–93 Aspect: Compliance (environmental) (Aspect Boundary within EWE) DMA G4-EN29 54–57 Fines and penalties for non-compliance with environmental laws and regulations 78 - - - þ p. 92–93 Aspect: Supplier Environmental Assessment (Aspect Boundary within and outside EWE) DMA 50–53 - 86 EWE SUSTAINABILITY REPORT 2014 SPECIFIC STANDARD DISCLOSURES Indicator Short name of the indicator G4-EN32 Screening of new suppliers using environmental criteria Page Omissions Reason for omissions 50 No information available for suppliers in 2014 The management and reporting process is currently in development. Externally audited1 þ p. 92–93 Aspect: Environmental Grievance Mechanisms (Aspect Boundary within EWE) DMA 54–57 G4-EN34 Number of grievances about environmental impacts 55 - - þ p. 92–93 CATEGORY: LABOUR PRACTICES AND DECENT WORK Aspect: Employment (Aspect Boundary within and outside EWE) DMA 63–67 - G4-LA01 Total number and rates of new employee hires and employee turnover by age group, gender and region 80 - - þ p. 92–93 G4-EU15 Percentage of employees eligible to retire in the next 5 to 10 years 80 - - þ p. 92–93 81 Not including those who return from parental leave and were still employed 12 months after The management and reporting returning; also excludes return rate and parental leave retention process is currently in development. rate G4-LA03 Return to work and retention rates after parental leave þ p. 92–93 Aspect: Labour/Management Relations (Aspect Boundary within EWE) DMA 63–67 G4-LA04 Minimum notice periods regarding significant operational changes 65 - - - þ p. 92–93 Aspect: Occupational Health and Safety (Aspect Boundary within and outside EWE) DMA 58–62 - G4-LA06 Lost days due to illness, number of injuries, number of 58, 59, 62, 78 work-related fatalities Excluding occupational illnesses; excluding subcontractors and supervised workers; information about work accidents without breakdown by gender The management and reporting process is currently in development. No breakdown by gender in the interest of preventing identification of individuals. þ p. 92–93 TC-IO03 Practices to ensure health and safety of telecommunications field personnel8 - - þ p. 92–93 7 62 1 — The information marked with “þ” was audited by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft in the 2014 financial year. Please refer to the independent assurance report on page 92–93. 7 — Indicators with the abbreviation TC (in accordance with GRI3) are relevant for the telecommunications sector. 8 — Voluntarily includes all technical facilities, i.e. also includes energy networks and is not restricted to telecommunications. 87 FACTS AND FIGURES SPECIFIC STANDARD DISCLOSURES Indicator Short name of the indicator Page Omissions Reason for omissions Externally audited1 Aspect: Training and Education (Aspect Boundary within EWE) DMA G4-LA10 63–67 Programmes for skills management and lifelong learning 65 - - - þ p. 92–93 Aspect: Diversity and Equal Opportunity (Aspect Boundary within EWE) DMA G4-LA12 63–67 Composition of governance bodies and breakdown of employees per employee category according to gender and age group 65, 81 - - - þ p. 92–93 Aspect: Supplier Assessment for Labour Practices (Aspect Boundary within and outside EWE) DMA G4-LA14 50–53 Screening of new suppliers using social criteria 50 No information available for suppliers in 2014 The management and reporting process is currently in development. þ p. 92–93 CATEGORY: HUMAN RIGHTS Aspect: Non-discrimination (Aspect Boundary within EWE) DMA G4-HR03 63–67 Total number of incidents of discrimination and corrective actions taken 81 - - - þ p. 92–93 Aspect: Freedom of Association and Collective Bargaining (Aspect Boundary within and outside EWE) DMA G4-HR04 50–53; 63–67 Operations and suppliers identified in which the right of employees to exercise freedom of association and collective bargaining may be violated or at significant risk 50, 65 - No information available for suppliers in 2014 The management and reporting process is currently in development. þ p. 92–93 Aspect: Supplier Human Rights Assessment (Aspect Boundary within and outside EWE) DMA G4-HR10 50–53 Screening of new suppliers using human rights criteria 50 No information available for suppliers in 2014 The management and reporting process is currently in development. þ p. 92–93 88 EWE SUSTAINABILITY REPORT 2014 SPECIFIC STANDARD DISCLOSURES Indicator Short name of the indicator Page Omissions Reason for omissions Externally audited1 CATEGORY: SOCIETY Aspect: Local Communities (Aspect Boundary within and outside EWE) DMA 44–49 - G4-SO01 Percentage of operations with implemented local community engagement programmes 46 - - þ p. 92–93 G4-EU22 Number of people displaced and compensation 77 - - þ p. 92–93 Aspect: Anti-corruption (Aspect Boundary within EWE) DMA G4-SO04 54–57 Communication and training on anti-corruption policies and procedures 78 - Not broken down by region Not relevant þ p. 92–93 Aspect: Public Policy (Aspect Boundary within and outside EWE) DMA G4-SO06 15–22 Total value of political contributions 78 - - þ p. 92–93 Aspect: Compliance (social) (Aspect Boundary within EWE) DMA G4-SO08 54–57 Fines and penalties for non-compliance with laws and regulations 55 - - - þ p. 92–93 CATEGORY: PRODUCT RESPONSIBILITY Aspect: Product and Service Labelling (Aspect Boundary within and outside EWE) DMA G4-PR05 54–57 Results of surveys measuring customer satisfaction 78 - - þ p. 92–93 Aspect: Customer Privacy (Aspect Boundary within EWE) DMA G4-PR08 68–71 Total number of substantiated complaints regarding breaches of data protection 68 Complaints must have a serious impact on the rights and protectable interests of the affected Based on German data protection þ p. 92–93 legislation party 1 — The information marked with “þ” was audited by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft in the 2014 financial year. Please refer to the independent assurance report on page 92–93. 89 FACTS AND FIGURES SPECIFIC STANDARD DISCLOSURES Indicator Short name of the indicator Page Omissions Reason for omissions Externally audited1 Aspect: Compliance (Product Responsibility) (Aspect Boundary within EWE) DMA G4-PR09 54–57 Fines for non-compliance with laws and regulations concerning the provision and use of products and services - 78 - - þ p. 92–93 Aspect: Access (Electric Utility Sector) (Aspect Boundary within EWE) DMA 24–28 - G4-EU29 Power outage duration in minutes per year, per customer in Germany 24 - - þ p. 92–93 G4-EU30 Average availability of power plants 75 - - þ p. 92–93 Aspect: Access (Telecommunications Sector) (Aspect Boundary within and outside EWE) DMA 24–28 - TC-IO01 Investment in telecommunications networks 28 - - þ p. 92–93 TC-PA01 Expansion and access to telecommunications networks in in remote and low population 28 density areas areas - - þ p. 92–93 PROGRESS CRITERIA FOR AREAS OF ACTION9 Indicator Short name of the indicator Page 2014 status, externally audited1 EWE-FK01 (= G4-EU29) Power outage durations in minutes, per year, per customer in Germany 21, 24 þ p. 92–93 EWE-FK02 Number of ideas submitted via the innovation portal that culminated in a project 21, 29 þ p. 92–93 EWE-FK03 (=G4-EN18) CO2 emissions in grams per generated kilowatt hour of electricity 21, 34 þ p. 92–93 EWE-FK04 Number of companies with ISO 50001-certified energy management systems 21, 40 þ p. 92–93 EWE-FK05 Regionality index 21, 44 þ p. 92–93 EWE-FK06 Proportion of strategic materials and services suppliers who commit to the supplier code of conduct 21, 50 þ p. 92–93 EWE-FK07 Customer loyalty index 21, 54 þ p. 92–93 EWE-FK08 (=G4-LA06) Healthy employees rate 21, 58 þ p. 92–93 EWE-FK09 Time taken to fill positions 21, 63 þ p. 92–93 EWE-FK10 Proportion of all employees in all relevant companies who have been trained in data protection, information security and unbundling using e-learning modules 21, 68 þ p. 92–93 9 — Indicators with the abbreviation EWE-FK are the progress criteria for areas of action. Not all of these are GRI indicators. The progress criteria are also provided here to provide a complete picture. 90 EWE SUSTAINABILITY REPORT 2014 GLOSSARY BALANCING GROUP MANAGEMENT CO2 EMISSIONS TRADING AND CO2 CERTIFICATES A balancing group is a virtual energy account for electricity and CO2 emissions trading is a market instrument and involves gas. This account is used to balance consumption and feed-ins, trading rights to emit greenhouse gases in the form of CO2 for example from power plants or trading transactions, with certificates. Within the EU, operators of facilities that are other balancing groups. Most virtual accounts are managed subject to emissions trading requirements must have rights centrally by a transmission network operator and administered for their (carbon dioxide) emissions. Governments limit the by so-called balancing group managers like an energy supplier. amount of rights that are allocated. If they produce more emissions than they hold the rights for, they have to purchase BIOGAS additional emission rights or reduce their emissions. They can Biogas is a mixture composed mainly of methane and carbon sell any excess emissions rights to other companies. dioxide. The valuable part which is used for generating energy is the methane component, which is obtained from biomass. COMBINED HEAT AND POWER (CHP)/CHP PLANTS A CHP plant uses both the generated electrical energy and BIOMASS the resulting (waste) heat. This increases the efficiency of In the context of renewable energy, biomass is the total mass these plants considerably. of plant or animal-based organic material which is capable of storing energy and can be utilised to generate electricity or COMBINED HEAT AND POWER PLANT heat. Combined heat and power plants are special heating plants which produce electricity and heat at the same time. This BLAST FURNACE GAS means that the fuel is used particularly efficiently. Blast furnace gas is a natural by-product of the production of pig iron. It contains just enough carbon monoxide (around 30 CONVERTER GAS per cent) to use it directly as a fuel in the production facility. It Converter gas is generated during the production of steel. Ex- is not worth transporting or storing because of its low energy cess carbon is removed from pig iron in the converter. content. DIRECT MARKETING OF RENEWABLE ENERGIES CO2 EMISSIONS Operators of renewable energy facilities can sell the electric- Carbon dioxide is created by burning fuels that contain carbon. ity they generate directly to a buyer via a public network in- Power plants, factories, building and vehicles emit enormous stead of a regional network operator. Power that is marketed amounts of man-made greenhouse gases. These are changing directly is subsidised with a so-called optional market premi- the natural CO2 balance in the atmosphere and intensifying the um and an additional management premium. This is aimed at greenhouse effect, resulting in an elevation of the temperature offering facility operators an incentive to take a market-driv- on the earth’s surface and in the lower atmosphere. en approach to operating their facilities. 91 FACTS AND FIGURES ENERGY CONTROLLING IN PERFORMANCE CONTRACTING REPLACEMENT FUELS Energy controlling in performance contracting is an innova- Replacement fuels are fuels derived from waste. They are be- tive approach to partnerships with local authorities which ginning to replace primary fuels like coal for combustion in EWE has trialled. It involves EWE performing services for power plants. municipal authorities like preparing energy reports, energy analyses, evaluating measures that have been implemented WASTE TO ENERGY or regular energy monitoring. The compensation that EWE Waste to energy is the process of generating electricity and receives for these services is made up of a basic component heat by burning waste. and a proportional amount which comes from the saved energy costs. ENERGY MANAGEMENT Energy management is the measurement, planning and control of energy generation and usage with the goal of increasing energy efficiency and thereby reducing consumption. Energy management within a company involves the energy needs of a company first being documented and analysed in LIST OF ABBREVIATIONS detail before appropriate energy-saving measures are identified. These can include optimising the operation of equipment, the use of more efficient machinery, or the generation of electricity on a precise, as-needed basis. PRIMARY ENERGY Primary energy is energy that occurs in a natural form or comes from natural sources, like crude oil, natural gas, coal or biomass. RENEWABLE ENERGY ACT (EEG) REVISION The most recent revision of the Renewable Energy Act (EEG) came into effect on 1 August 2014. The purpose of the amendment is to bring renewable energies closer to the market and make it possible to expand their use in a controlled fashion. For instance, under the amended Act, operators of new facilities must market the electricity that they generate on the energy exchange. The revision also added target ranges for the national expansion of renewable energies. BTC DSL EBIT EEG > BTC Business Technology Consulting AG > Digital Subscriber Line > Earnings before interest and taxes > Erneuerbare-Energien-Gesetz (Renewable Energy Act) el > Electric GW > Gigawatt GWh > Gigawatt hour kW > Kilowatt kWh > Kilowatt hour Mg > Megagram MW > Megawatt MWh> Megawatt hour Nm3 > Standard cubic metre RF > Replacement fuels 92 EWE SUSTAINABILITY REPORT 2014 INDEPENDENT ASSURANCE REPORT The assurance engagement performed by Ernst & Young (EY) references to other sections of the report and other sources, relates exclusively to the German printed version of the EWE or study reports conducted by third parties. AG Sustainability Report 2014. The following text is a translation of the original German Independent Assurance Report. CRITERIA We assessed the report against the criteria set out in the TO THE BOARD OF MANAGEMENT OF EWE AG, Sustainability Reporting Guidelines G4 issued by the Global OLDENBURG Reporting Initiative (GRI). We believe that these criteria are suitable for our assurance engagement. OUR ENGAGEMENT MANAGEMENT’S RESPONSIBILITY We have been engaged to perform a limited assurance engagement on information marked with the symbol þ in EWE The Board of Management of EWE AG, Oldenburg is responsi- AG’s 2014 sustainability report (referred to in the following ble for the preparation and the content of the report in com- as the report) for the reporting period from 1 January to 31 pliance with the above-mentioned criteria. This responsibili- December 2014. The information included in our limited as- ty includes the design, implementation and maintenance of surance engagement is marked with the symbol þ in the GRI internal controls for the preparation of a report that is free Index on pages 82 to 89 and covers the following areas: from material misstatements, in accordance with the above mentioned criteria and based on suitable methods for gath- + General standard disclosures, including sector-specific indicators, as long as they relate to performance indica- ering source data, including judgements and estimates of the individual sustainability data. tors; + General standard disclosures on identified material as- OUR RESPONSIBILITY pects and boundaries, stakeholder engagement and the report profile; + Progress criteria for the EWE-specific areas of action (current status in 2014); + Specific standard disclosures, including sector-specific information. LIMITATIONS OF OUR ENGAGEMENT Our responsibility is to issue an assurance report on information marked with the symbol þ in EWE AG’s 2014 sustainability report for the reporting period from 1 January 2014 to 31 December 2014 based on our work performed for a limited assurance engagement. We conducted our limited assurance engagement in accordance with the International Standard on Assurance Engage- Our engagement is limited to the information marked with ments (ISAE) 3000. This standard requires that we comply a þ symbol in the German-language printed version of the with our professional duties and plan and perform the as- sustainability report. Our engagement did not include any surance engagement to obtain a limited level of assurance forward-looking statements, information for previous years, to preclude that the information marked with the symbol þ 93 FACTS AND FIGURES in EWE AG’s 2014 sustainability report is not in accordance, data and disclosures during our visit at the head quarter in material respects, with the above mentioned criteria. In a office of EWE AG Oldenburg and during site visits at swb limited assurance engagement the evidence gathering pro- Erzeugung AG & Co. KG in Bremen and EWE NETZ GmbH cedures are more limited than in a reasonable assurance engagement and therefore less assurance is obtained than in a reasonable assurance engagement. in Oldenburg + Analytical measures regarding the quality of the reported data + Review of incorporation of study reports conducted by We are independent from the company in compliance with professional requirements and the IESBA Code of Ethics for third parties, to the extent that those are relevant for the information marked with a þ symbol Professional Accountants (IESBA Code), which is founded on + Critical review of the draft report to assess plausibility the fundamental principles of integrity, objectivity, profes- and consistency with the information marked with a þ sional competence and due care, confidentiality and profes- symbol. sional behaviour, and we have also complied with our other professional requirements and the IESBA Code. OUR CONCLUSION KEY PROCEDURES Based on our procedures performed to obtain a limited level of assurance, nothing has come to our attention that causes The performance of our engagement mainly involved the fol- us to believe that the information marked with a þ symbol in lowing work: EWE AG’s 2014 sustainability report for the reporting period from 1 January to 31 December 2014 has not been prepared, + Inquiries of employees concerning the sustainability strategy, sustainability principles and sustainability in all material respects, in accordance with the above mentioned criteria. management of EWE AG, including dialogue with stake holders and materiality analysis + Inquiries of employees responsible for the preparation of information marked with a þ symbol in the sustainability Munich, 3 June, 2015 Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft report in order to assess the sustainability reporting system, the data capture and compilation methods as well as internal controls to the extent relevant for a review of the information marked with the þ symbol + Inspection of the relevant documentation of the systems and processes for compiling, analysing and aggregating sustainability data in the reporting period and testing such documentation on a sample basis + Inquiries and inspection of documents on a sample basis relating to the collection and reporting of sustainability Nicole Richter Nina Müller German Public Auditor German Public Auditor 94 EWE SUSTAINABILITY REPORT 2014 CONTACT AND PUBLICATION DETAILS >> G4-31 PUBLISHED BY CONCEPT, DESIGN AND LAYOUT EWE Aktiengesellschaft Berichtsmanufaktur GmbH, Hamburg, Germany Tirpitzstrasse 39 26122 Oldenburg www.berichtsmanufaktur.de Germany www.ewe.com PHOTOGRAPHY Stephan Meyer-Bergfeld, Oldenburg, Germany CONTACTS Matthias Ibeler, Emsdetten, Germany EWE Aktiengesellschaft (Pictures from Riffgat: Title; p. 38–39) Corporate Development – Sustainability Team Dr. Friedrich Janssen PRINTED BY Zertani Die Druck GmbH, Phone: +49 441 4805 1101 E-mail: [email protected] TEAM EDITORIAL AND TEXT EWE Aktiengesellschaft Corporate Communication Wolfgang Witte, Aurich, Germany Berichtsmanufaktur GmbH, Hamburg, Germany Bremen, Germany EWE SUSTAINABILITY REPORT 2014 CREATING VALUE FOR OUR REGION EWE Aktiengesellschaft Tirpitzstrasse 39, 26122 Oldenburg, Germany www.ewe.com