One Planet Plan Living within the limits of our planet

Transcription

1 One Planet Plan Living within the limits of our planet Climate Change Results & Methodology

2 Impact on the climate Climate change has, by far, the most important impact in the value chains in which we operate. In 2015, the value chain emissions of the Eneco Group, her customers, and her suppliers amounted to ca. 13 Mton CO 2eq. Not all of our value chain emissions take place in the Netherlands; some take place abroad. However, the total greenhouse gas emissions in the Netherlands in that same year paints a good picture of the impact of the Eneco Group and her customers. The Dutch total was 196 Mton CO 2eq. The value chain impact of the Eneco Group and her customers accounted for nearly 7%. For ten years, we have been working to reduce our impact on the climate. We have, for example, invested substantially in renewable energy for years, such as the construction of wind farms. Climate goal In 2015 global climate agreements were made in Paris to remain well within the 2 C limit for global warming. We have translated these climate agreements to our company, including our suppliers and customers: in other words to all the value chains in which we operate. We are proud that our efforts have resulted in us being further ahead than the climate agreements require us to be. Obviously, the challenge to continue to do so is getting bigger due to the increasing demands to improve sustainability and the decrease of the allowed emissions. Our objectives and our plans have been aligned with this challenge, and we expect to be able to face these challenges for years to come. Our ambition is to live within the limits of our planet. Our objective for climate change is to stay well within the 2 C limit for global warming. This equals a target of less than 11.2 Mton value chain footprint in Page: 2 van 34

3 To get a better grip on the development and the main challenges, we have broken this strategic KPI down to specific sectors and products. Electricity Our private clients are all supplied with renewable electricity. We promote renewable electricity to business customers, but ultimately the final choice is theirs. Therefore we will not refuse to supply conventional electricity, which results in far more greenhouse gas emissions. These greenhouse gas emissions will have to decrease significantly in the coming years, so as to reach our goal. The graph below shows that our total electricity portfolio is well within the EU average 2 C-pathway, as well as within our target for electricity. Page: 3 van 34

4 Heat demand households Our customers greenhouse gas emissions, caused by decentralized consumption of natural gas or central production of district heating, present a big challenge. As the graph below shows, the good news is that the GHG emissions per household are well within the EU average 2 C-pathway and also within the Eneco specific budget for residential heating. It remains a challenge to stay below the downward trend of the Eneco Specific Target Pathway. The alternatives are less abundantly available. Considering this, Eneco WarmteWinner plays an important part by offering a solution for existing homes! Page: 4 van 34

5 Heat demand agribusiness The reduction of greenhouse gas emissions in the heat demand of agribusiness is also of great importance for achieving our objective. Agro Energy and her customers endeavor to reduce their footprint, in particular by using residual heat from industry and by facilitating geothermal energy. The sector is on track! Our ambition can only be achieved in cooperation with our customers and other stakeholders. Of course, we try to set a good example: we show what we do and how we are making our value chains more sustainable together with suppliers and other stakeholders in One Planet Company. Page: 5 van 34

6 One Planet Company: Targets and results Targets The development towards a Carbon Budget was introduced in 2017 as an addition to existing sub-indicators. The Carbon Budget extends the scope to our full value chain footprint (scope 1, 2 and 3). As of 2017, 2015 will be regarded as the base year. A sub-indicator for agribusiness was newly developed in For 2016 the following targets were relevant: 1. Reduction of climate change impact from the generation of electricity supplied to customers compared to 2012: reduction of 16%; 2. Reduction of climate change impact from natural gas consumption and the generation of district heating supplied to households compared to 2012: reduction of 8%; 3. Reduction of the climate impact of own electricity consumption compared to 2012: reduction of 50%. With the demerger of grid operator Stedin, this 3rd sub-indicator is no longer relevant, as the Eneco Group uses HollandseWind for all her electricity consumption. Results The climate impact of our customers electricity consumption in 2016 has been reduced by 25% compared to With this, our goal has been amply achieved. The climate impact of our customers natural gas and heat consumption has been reduced by 10% compared to This means that this target has also been achieved. Indicator Target 2016 Actual 2016 One Planet: Reduction of climate change impact from the generation of electricity supplied to customers compared to 2012 One Planet: Reduction of climate change impact from natural gas consumption and the generation of district heating supplied to households compared to % 25% 8% 10% Page: 6 van 34

7 Climate footprint Below our climate footprint 2015 and 2016 in accordance with the Corporate Value Chain (Scope 3) Accounting and Reporting Standard of the Greenhouse Gas Protocol. The scope is limited to the Eneco Group after the demerger from the Stedin business units. Activity Category Sub (kton CO 2eq) (kton CO 2eq) Emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. Natural gas consumption buildings 0 0 Natural gas consumption for the generation of electricity and district heating (with operational control) Fuel consumption company owned (or leased) vehicles 5 4 Leakage emissions from company-owned installations, systems, and grids Coolant leakages from air-conditioning units 0 0 Emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company Electricity consumption buildings 0 0 District heating consumption buildings 0 0 Emissions from the generation of grid losses during the distribution of district heating from: Purchased goods and services + Capital goods + Investments Fuel- and energyrelated activities (not included in scope 1) Based on money spent. Expenses consist partly of Capital goods and investments. Upstream natural gas consumption buildings Upstream natural gas consumption for Electricity and District heating production (with operational control) Verified by Ecofys at level limited assurance 2 Unverified result Page: 7 van 34

8 Fuel- and energyrelated activities (not included in scope 2) from the generation of purchased or acquired electricity, steam, heating, or cooling supplied to customers Upstream fuel consumption company owned (or leased) vehicles Upstream electricity consumption buildings Upstream district heating consumption buildings Upstream the generation of grid losses during the distribution of district heating Generation of electricity supplied to customers Generation of district heating supplied to customers Correction Own or controlled generation of electricity Correction Own or controlled cogeneration of electricity and heating Correction Own or controlled generation of heating from upstream transportation and distribution from waste generated in operations N/a - - N/a - - from business travel Business travel using private car (remunerated) Business travel using public transport (remunerated) Business air travel 0 0 Employee commuting 2 2 Page: 8 van 34

9 from employee commuting from upstream leased assets N/a - - Combustion, leakage and upstream downstream transportation and distribution Grid losses (leakage emissions) during distribution of supplied natural gas including from processing of sold products from use of sold goods from end-of-life treatment of sold products from downstream leased assets from franchises N/a - - Natural gas supplied to customers N/a - - N/a - - N/a The decline in 2016 compared to 2015 is mainly caused by a decrease in natural gas consumption by customers. In addition, the CO 2-intensity of the electricity we supply has reduced further. Themes and indicators has changed compared to the previous reporting as a result of the adjustment of scope (excluding Stedin) and several recalculations based external verification recommendations. 4 Notes relating to the value chain footprint for 2016: 1) There is no data available to estimate the impact of contract workers commuting. In Table 1, 2015 has been corrected for this. 2) Due to problems with the reliability of received data, employee commuting in the third quarter is based on the source data for June. Page: 9 van 34

10 The pie chart below gives insight into the relative weight of the main themes within the climate footprint. By far the largest part of the emissions is caused by supplying energy to our customers, led by the value chains for natural gas (68%) and electricity (21%). The value chain for heating follows with 10% at number 3. 21% 10% 1% 0% 68% Value Chain Natural Gas Value Chain Electricity Value Chain Heating Procurement & Investments Internal Operations The pie chart also shows that the activity categories that are included in internal operations (properties/offices, vehicles, and employees) together account for less than 1% of the total climate footprint. Nevertheless, the Eneco Group has had CO 2-neutral internal business operations since We compensate for the CO 2 emissions we could not avoid by investing in sustainability in other countries. This is achieved through the acquisition of CO 2 certificates relating to the conservation of valuable nature reserves, REDD (Reduction Emissions from Deforestation and Forest Degradation), or CO 2 certificates with a Gold Standard certification. Page: 10 van 34

11 Accountability This chapter explains the methodology used, the scope of our climate footprint, the guidelines or protocols we use for reporting, and the indicators used to gain insights in our impact. Organizational scope The scope of our climate footprint is the entire value chain of the Eneco Group, excluding grid operator Stedin. As far as our organization is concerned, all business units are included except Ecofys and Quby. Acquisitions that were formalized after 2016 are also excluded from the scope of the results and explanations presented in this document. Reporting scope Although we often reference to the climate footprint of the Eneco Group, there is not just one version of our climate footprint. This is mainly due to the guideline or protocol which is being used. The definition we use in this context for the concept of protocol is the combination of activity categories, parameters, and reporting layout. Activity categories describe the various activities and processes that produce impact. A distinction is made between combustion and leakage. The first could include the incineration of primary fuels in a power station or the combustion of motor fuels in the context of motor vehicle travel. An example of leakage is the natural gas that is released into the air because of leaks in gas pipelines. The primary business processes of an organization not only determine activity categories but also the position of an organization in the value chains in which it is active. For the Eneco Group, the primary processes are formed by the production and distribution of electricity, gas, and heat. Environmental impact, up- and downstream in the value chains, occupy an important position inside the value chain footprint of an energy company such as the Eneco Group. For instance, a part of the electricity, which is supplied to end users, is purchased. The impact, in this case, takes place 'upstream'; the producing company is responsible. The impact is 'downstream' for natural gas, for example in the form of greenhouse gas emitted through the customer's chimney. The environmental impact of our business operations is virtually nil when compared to the impact caused by suppliers and customers. However, we believe our strategy is only credible if our business operations are in order. For this reason, we continuously monitor the climate impact caused directly and indirectly by our employees during their daily work. Parameters is a collection group for all values other than activity data which are used to calculate environmental impact. In addition to impact factors (e.g. CO 2 emission factors), parameters are also used for estimating consumption and the distribution of consumption over subcategories (if unknown). Reporting layout just means the manner in which the impact is grouped within the standard report design. This may be, for example, by theme or by organizational boundaries. An example of a widely-used guideline is the 'Corporate Value Chain (Scope 3) Accounting and Reporting Standard' of the Greenhouse Gas Protocol. This protocol stipulates that greenhouse gas emissions be grouped by GHG scopes, which roughly describe how much influence the organization that is reporting has on reported emissions. About 20 different activity categories are distinguished, distributed across the scopes. The GHG protocol does not dictate specific parameters; it only sets requirements for the source of the parameters used. The following paragraphs provide insight into the relevant activity categories. It is indicated for each of the categories whether it is pertinent to the Eneco Group and whether the category is included in our calculations. Page: 11 van 34

12 Activity categories In line with the Corporate Value Chain (Scope 3) Accounting and Reporting Standard' of the Greenhouse Gas Protocol, we distinguish the following activity categories. The table below lists for each of the categories whether it is relevant to our activities and if we are currently reporting on it. Activity Category Sub GHG Scope Relevan t Status Emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. Leakage emissions from company-owned installations, systems, and grids. Emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company from purchased goods and services from capital goods 1. Natural gas consumption buildings 2. Natural gas consumption for the generation of electricity and district heating (with operational control) 3. Fuel consumption company owned (or leased) vehicles 1. Coolant leakages from airconditioning units 1. Electricity consumption buildings 2. District heating consumption buildings 3. Emissions from the generation of grid losses during the distribution of district heating. Based on money spent. Expenses consist partly of Capital goods and Investments. Based on money spent. Expenses consist partly of Purchased goods and services and Investments. Scope 1 Yes Reported for reportingand base year. Scope 1 Yes Reported for reportingand base year. Scope 2 Yes Reported for reportingand base year. Scope 3, Category 1 Scope 3, Category 2 Yes Yes Reported for reportingand base year. Reported for reportingand base year. Fuel- and energyrelated activities (not included in scope 1) Fuel- and energyrelated activities (not included in scope 2) Upstream impact: 1. Natural gas consumption buildings 2. Natural gas consumption for Electricity and District heating production (with operational control) 3. Fuel consumption company owned (or leased) vehicles Upstream impact: 1. Electricity consumption buildings 2. District heating consumption buildings 3. Emissions from the Scope 3, Category 3 Scope 3, Category 3 Yes Yes Reported for reportingand base year. Reported for reportingand base year. Page: 12 van 34

13 Activity Category Sub GHG Scope Relevan t Status generation of grid losses during the distribution of district heating. from the generation of purchased or acquired electricity, steam, heating, or cooling supplied to customers upstream impact: 1. Generation of electricity supplied to customers 2. Generation of district heating supplied to customers Scope 3, Category 3 Yes Reported for reportingand base year. from upstream transportation and distribution N/a Scope 3, Category 4 No N/a from waste generated in operations N/a Scope 3, Category 5 Yes Not reported for reporting- or base year. from business travel from employee commuting upstream impact: 1. Business travel using private car (remunerated) 2. Business travel using public transport (remunerated) 3. Business air travel upstream impact Scope 3, Category 6 Scope 3, Category 7 Yes Yes Reported for reportingand base year. Reported for reportingand base year. from upstream leased assets N/a Scope 3, Category 8 No N/a Combustion, leakage and upstream downstream transportation and distribution upstream impact: 1. Grid losses during distribution of supplied natural gas 2. Grid losses during distribution of supplied electricity N/a Scope 3, Category Natural gas is reported for reporting- and base year. Reporting on electricity grid losses is under development. No N/a Page: 13 van 34

14 Activity Category Sub GHG Scope Relevan t Status from processing of sold products from use of sold goods upstream impact natural gas supplied to customers Scope 3, Category 11 Yes Reported for reportingand base year. from end-of-life treatment of sold products N/a Scope 3, Category 12 No N/a from downstream leased assets N/a Scope 3, Category 13 No N/a from franchises N/a Scope 3, Category 14 No N/a from investments Based on money spent. Expenses consist partly of Purchased goods and services and Capital goods Scope 3, Category 15 Yes Reported for reportingand base year. The table shows that virtually all relevant activity categories are being reported, except for "Grid losses during distribution of supplied electricity" and "Waste generated in operations." Data collection of activity data (i.e. consumption) takes place monthly with a limited number of exceptions. All data providers have agreed upon delivering new data at least quarterly. Activity data The collected data on our activities and the activities of our customers form the basis for all reports. In Annex I 'Activity Data and Methodology,' the origin of this activity data is explained. For some categories, an estimate is made by in- or extrapolation in case activity data is not available. This is done based on the data (number of employees and weighted averages) that are available. For a number of major categories, the availability of the data is a prerequisite for reporting. Emission factors The collected data on our activities will be multiplied with the relevant emission factors to calculate GHG impact. Emission factors are based on the most recent available sources as much as possible. In Annex II 'Emission factors, the used sources are shown in detail. Page: 14 van 34

15 Guidelines / Protocols Below is an overview of key aspects in regards to the guidelines/protocols: Activity categories Impact categories Source parameters Report layout Corporate Value Chain (Scope 3) Accounting and Reporting Standard upstream impact: All calculated activity categories Climate Change: CO 2 + CH 4 + N 2O Climate Change: Defra; CO 2- emissiefactoren.nl; Ecofys; Other GHG scopes + Value Chain categories. Internal Operations upstream impact: - Natural gas consumption buildings - Fuel consumption company owned (or leased) vehicles - Electricity consumption buildings - District heating consumption buildings - Business travel using private car (remunerated) - Business travel using public transport (remunerated) - Business air travel Climate Change: CO 2 + CH 4 + N 2O Climate Change: CO 2- emissiefactoren.nl; Defra; Other GHG scopes The protocol Internal Operations has been developed in-house by the Eneco Group and focuses on the activities of its employees. The most illustrative example is the emission that occurs in the proximity of employees, for instance, in the car during commuting or to heat their workplace. Page: 15 van 34

16 Indicators The table below provides more information about the sub-indicators relevant in Indicator Scope Ratio Reduction of climate change impact from the generation of electricity supplied to customers compared to 2012 Reduction of climate change impact from natural gas consumption and the generation of district heating supplied to households compared to 2012 Activity categories: - from natural gas consumption for the generation of electricity (with operational control) - from generation of electricity supplied to customers, corrected for own or controlled generation Climate Change: - CO 2, CH 4, and N 2O - (Scope 1+3) Activity categories: - Combustion, leakage and upstream grid losses during distribution of supplied natural gas - from the generation of grid losses during the distribution of district heating - from generation of district heating supplied to customers - from natural gas supplied to customers Please note. for all the aforementioned categories only small consumers are part of the scope. Climate Change: - CO 2, CH 4, and N 2O - (Scope 3) Units: CO 2eq intensity: Gram CO 2eq per kwh Numerator: Total of greenhouse gas emissions (converted to CO 2eq) emitted during and before the generation of electricity supplied to customers, corrected for purchased renewable energy certificates Denominator: Total of supplied electricity Units: Kilogram CO 2eq per household. Numerator: Total of greenhouse gas emissions (converted to CO 2eq) emitted during and before the generation of district heating supplied to customers (normalized 5 ) and greenhouse gas emissions emitted during and before the consumption of natural gas supplied to customers (normalised 5 ) Denominator: Total number of households supplied to 5 The demand for natural gas and district heating is strongly influenced by the outdoor temperature and the number of hours of sunshine. For this reason, we normalize the actual consumption. Page: 16 van 34

17 Changes Calculating footprints is a relatively new practice for companies and is still in development. Changes due to new insights can, therefore, be anticipated. A recalculation protocol has been prepared, partly for this. A Recalculation protocol was developed in 2014 and has been retroactively applied to our footprints from 2012 until now. The protocol defines how changes in the footprints and related indicators are handled in case one of the following situations occurs afterward: Structural change Adjustment of the methodology for calculation One or more errors when applying the methodology for calculation Missing or superfluous activity data Improvement of one or more emission factors Enhancement of one or more other parameters In summary, in most cases recalculation is applied if the impact of the change is substantial. There are a limited number of exceptions to the standard protocol for categories that are of particular importance to us as an energy company. Thus, regardless of impact, we will always recalculate if we receive new data in regards to generated and procured electricity, heat, and gas. In 2016, adjustments were made to a limited extent to improve or maintain completeness and reliability: No mergers/acquisitions were processed in the new reporting and base year. New activity categories were added in 2016 for grid losses related to supply (as grid losses on the Stedin network will disappear due to the legally required demerging of Eneco and Stedin). In 2016, two new indicators were developed: Reduction of climate impact from cultivation by Agro Energy customers compared to the base year 2015 One Planet <2 C: Reduction of absolute chain emissions in relation to 2015 The latter includes all activity categories and with that the total climate footprint. As of 2017, this indicator will play a central role. Preparations have been made for all indicators to change the base year from 2012 to 2015 (starting in 2017). Finally, new data became available regarding multiple activity categories in 2016, which led to recalculation relating to one of the previous years. Page: 17 van 34

18 Annex I: Activity data and methodology Activity Category Sub Activity data and methodology Emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. Leakage emissions from companyowned installations, systems, and grids Emissions from the generation of purchased or acquired electricity, Natural gas consumption buildings Natural gas consumption for the generation of electricity and district heating (with operational control) Fuel consumption company owned (or leased) vehicles Coolant leakages from airconditioning units Electricity consumption buildings The energy consumption of the office and other buildings is determined on the basis of consumption by telemetry or through the gas, heating, and electricity meter meters. In case full year meter readings are missing, meteorological data is used to extrapolate to arrive at an estimated annual consumption. The unavailable consumption data is estimated at the property level by extrapolation based on the average consumption per square meter and the surface area of the relevant properties. For source references to the direct and Indirect emission factors used, refer to Annex II 'Emission Factors'. The Eneco Group generates part of the electricity delivered to end users independently. That is, the Eneco Group has operational control over multiple generating plants. These installations consist of renewable generating plants (sun, wind, biomass) and "conventional" plants. For large-scale power plants, direct emissions of electricity are determined by the CO 2 emissions released by natural gas combustion needed for electricity generation. The (direct and Indirect) emissions of natural gas are included in our value chain footprint, as well as the Indirect the renewable generation plants. The quantities of natural gas used at the power plants are based on a combination of meter readings and purchase invoices. The emission factor for Dutch natural gas published by the Dutch government is used for the conversion to (direct) CO 2 emissions. The impact calculation is further supplemented by CH 4 and N 2O and Indirect CO 2 emissions. For source references to the direct and Indirect emission factors used, refer to Annex II 'Emission Factors'. The basis for calculation is the data received from leasing companies regarding the sum of liters consumed by fuel type. Periodically an inventory is made of the air conditioners used inside active properties. Using this data and the available average leakage parameters the leakage of coolant is estimated for each individual airco unit. If insufficient data is available regarding the airconditioning units in a property, the leakage at property level is estimated by extrapolation. For the Global Warming Potential (GWP) and sources used, see Appendix II 'Emission Factors'. See Natural gas consumption buildings. Page: 18 van 34

19 steam, heating, or cooling consumed by the reporting company upstream : Purchased goods and services + Capital goods + Investments Fuel- and energyrelated activities (not included in scope 1) Fuel- and energyrelated activities (not included in scope 2) District heating consumption buildings Emissions from the generation of grid losses during the distribution of district heating. Based on money spent. Expenses consist partly of Capital goods and investments. Upstream natural gas consumption buildings Upstream natural gas consumption for Electricity and District heating production (with operational control) Upstream fuel consumption company owned (or leased) vehicles Upstream electricity consumption buildings Upstream district heating consumption buildings See Natural gas consumption buildings. Grid losses are caused by various reasons, such as technical resistance, leakage, fraud, etc. These losses involve emissions, resulting from the generation of the energy that is lost or direct leakage. Heat is often residual heat, a by-product of electricity generation. It is therefore often purchased from electricity producers. The heat is then distributed to customers using local district heating grids. Grid losses are mostly due to the large temperature differences, which causes heat loss during transport. Grid losses are calculated by determining the difference between procurement and sales of heat. The basis for the calculation is registered expense data (spent). Emission factors per euro are used to calculate emissions. The emission factors applied can be found in Appendix II. See Natural gas consumption buildings. See Natural gas consumption for the generation of electricity and district heating (with operational control). See Fuel consumption company owned (or leased) vehicles. See Electricity consumption buildings. See District heating consumption buildings. Page: 19 van 34

20 upstream the generation of purchased or acquired electricity, steam, heating, or cooling supplied to customers Upstream the generation of grid losses during the distribution of district heating Generation of electricity supplied to customers Generation of district heating supplied to customers See Emissions from the generation of grid losses during the distribution of district heating. The data is based on the actual electricity supply to our customers. The total electricity supply consists of generated electricity and purchased electricity. The emissions of gas consumption required for electricity generation with operational control is deducted from the total emissions for the electricity supplied to prevent double counting (with generation). The same goes for the electricity consumption in and around properties in use, as this consumption is also included in the total volume supplied. Because the consumption data of our customers is not always immediately available, they are estimated as well as possible based on generation, procurement, and historical consumption. The electricity label determines the direct CO 2 emission intensity. The impact calculation is further supplemented by CH 4 and N 2O and Indirect CO 2 emissions. For source references to the direct and Indirect emission factors used, refer to Annex II 'Emission Factors'. The data is based on the actual supply to our customers. Because the consumption data of our customers is not always immediately available, they are estimated as well as possible based on generation, procurement, historical consumption and meteorological data. To prevent double counting, the heat consumption in properties in use is deducted from the total delivered volume per local heating grid. Correction Own or controlled generation of electricity Correction Own or controlled cogeneration of electricity and heating The direct CO 2 emissions are determined using the Energy Performance Standard for Measures at Area Level (EMG) The impact calculation is further supplemented by CH 4 and N 2O and Indirect CO 2 emissions. For source references to the direct and Indirect emission factors used, refer to Annex II 'Emission Factors'. This correction takes place to prevent double counting for the emissions caused by controlled generation of electricity, as these emissions are also taken into account during the calculation of the weighted average intensity of electricity supplied. The data is based on the actual reported emissions of our power plants without cogeneration. This correction takes place to prevent double counting for the emissions caused by controlled generation of electricity, as these emissions are also taken into account during the calculation of the weighted average intensity of electricity supplied. Page: 20 van 34

21 The data is based on the actual reported emissions of our power plants with cogeneration. Correction Own or controlled generation of heating This correction takes place to prevent double counting for the emissions caused by controlled generation of district heating, as these emissions are also taken into account during the calculation of the weighted average intensity of heating supplied. The data is based on the actual reported emissions of our power plants with cogeneration. upstream upstream transportation and distribution upstream waste generated in operations upstream business travel N/a N/a Business travel using private car (remunerated) Business travel using public transport (remunerated) Business air travel A report from, among other sources, the SAP HR system contains the remunerated kilometers by car and remunerated amounts regarding the use of public transport. The mileage by car is distributed over fuel types based on a mobility survey among employees. The amounts for public transport are converted to kilometers by means of published rates per kilometer for the various forms of public transport. There is no further subdivision to public transport type. A report from, among other sources, the SAP HR system contains the remunerated kilometers by car and remunerated amounts regarding the use of public transport. The mileage by car is distributed over fuel types based on a mobility survey among employees. The amounts for public transport are converted to kilometers by means of published rates per kilometer for the various forms of public transport. There is no further subdivision to public transport type. In addition to remunerations, some of the employees have a mobility card at their disposal. Reports from mobility card providers include kilometers and / or amounts for public transport expenses. If necessary, the public transport costs are converted to kilometers using published rates per kilometer for the various forms of public transport. The flight kilometers are determined based on the information provided by our travel agency. A distinction is made between short, medium and long flights. The calculation of CO 2 emissions takes into Page: 21 van 34

22 upstream employee commuting upstream upstream leased assets Combustion, leakage and upstream downstream transportation and distribution upstream processing of sold products upstream use of sold goods Employee commuting N/a Grid losses (leakage emissions) during distribution of supplied natural gas including upstream emissions N/a Natural gas supplied to customers account the airplane class, as this affects CO 2 emissions per kilometer for the individual flying. If the data from the SAP HR system shows that an employee receives a traveling budget, a calculation is made of the number of kilometers per type of transport based on the travel distance between home and workplace, the contractual number of working days and a mobility survey among employees. If sufficient data is available, the kilometers for contract workers will also be calculated. Based on the number of contract hours for contract workers and the average travel distance per type of transport of employees, the total travel distance between home and workplace is estimated. Grid losses are caused by various reasons, such as technical resistance, leakage, fraud, etc. These losses involve emissions, resulting from the generation of the energy that is lost or direct leakage. In the case of natural gas, grid losses take the form of leakage emissions. Considering natural gas is largely made up of methane, the Global Warming Potential (GWP) is used to determine the global warming impact expressed in CO 2 emissions. For the Global Warming Potential (GWP) and sources used, see Appendix II 'Emission Factors'. The data is based on the actual supply. The total natural supply consists of supply to our customers and intercompany supply to our owned or controlled power plants. Intercompany supply is deducted from the total natural gas consumption to prevent double counting (with emissions from generation). The same goes for the natural consumption in and around properties in use, as this consumption is also included in the total volume supplied. Because the consumption data of our customers is not always immediately available, they are estimated as well as possible based on generation, procurement, historical consumption and meteorological data. Page: 22 van 34

23 The Eneco Group supplies natural gas to end users in the Netherlands and Belgium. Dutch (Gronings) natural gas has the same qualities (energy value, etc.), regardless of the region in which it is used. In Belgium, depending on the area, natural gas is used that has a higher (high caloric) or lower (low caloric) energy value than standard Dutch gas. This leads, among other things, to the fact that the source data for gas supply in Belgium is depicted by default in MWh. The emission factor for Dutch natural gas published by the Dutch government is used for the conversion to (direct) CO 2 emissions. The impact calculation is further supplemented by CH4 and N2O and Indirect CO 2 emissions. For the natural gas supplied in Belgium, it is necessary to distinguish between 'high caloric' and 'low caloric' gas. A specific emission factor is applied. For source references to the direct and Indirect emission factors used, refer to Annex II 'Emission Factors'. upstream end-of-life treatment of sold products upstream downstream leased assets upstream franchises N/a N/a N/a Page: 23 van 34

24 Annex II: Emission Factors Parameter Electricity Natural gas Electricity - Biomass Electricity - Coal Electricity - Nuclear Electricity - Other fossil Electricity - Hydro (Netherlands river) Electricity - Hydro (Norway) Electricity - Wind offshore Source reference Direct CO2: ACM Fuel Mix 2015 CH4, N2O: Defra 2014, Tab 'UK electricity.' Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final.xlsx Biogenic emissions: Ecofys o.b.v. uitgangspunt gem. NL-biomassa, zie mail CN d.d :21 uur. Direct CO2: N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1 Direct CO2: ACM Fuel Mix 2015 CH4, N2O: Defra 2014, Tab 'UK electricity.' Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final.xlsx Direct CO2: N/a CH4, N2O: Defra 2014, Tab 'UK electricity.' Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final.xlsx Direct CO2: ACM Fuel Mix 2015 CH4, N2O: Defra 2014, Tab 'UK electricity.' Indirect CO2: Defra 2014, WTT- UK & overseas elec (generation + T&D), Netherlands Direct CO2: N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1 Direct CO2: N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1 Direct CO2: N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1 Page: 24 van 34

25 Parameter Electricity - Wind onshore Electricity - Solar Electricity - Grid Factor Electricity - Eneco Group Total Electricity Consumption Eneco Group Properties Natural gas supply NL Dutch standard Natural gas Belgium - High caloric Natural gas Belgium - High caloric Source reference Direct CO2: N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1 Direct CO2: N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1 Biogenic emissions: -. Direct CO2: ACM Fuel Mix 2015 CH4, N2O: Indirect CO2: emissies in de voorketen van de elektriciteitsproductie (transport en winning van brandstoffen, CE Delft, 2012) Calculation conforming to guidelines ACM. Direct CO2: Rijden op 100% groene stroom met Eneco HollandseWind -> N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, april 2010, pag 2, tabel 1, wind offshore Direct CO2: Staatscourant, nr 1441, 20 januari Converted. Combust CH4/N2O: Emissiefactoren Aardgas v1.3.xlsx, Tab resultaten, CO2e emissions, Eneco Business, Emission factor (kg CO2/CM) Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final.xlsx Direct CO2: 1 m3 belgian high caloric natural gas (upper value) = 40,68 MJ (Source: Ecofys); Ratio between lower and upper value = 0,9; 1 m3 belgisch belgian high caloric natural gas (lower value) => 40,68*0,9 = 36,612 MJ; emission factor belgian gas /MJ = 55,82 (Source IPCC); 1 m3 belgian high caloric natural gas => 55,82*36,612/1000=2,0437 kgco2 Combust CH4/N2O: Emissiefactoren Aardgas v1.3.xlsx, Tab resultaten, CO2e emissions, Eneco Business, Emission factor (kg CO2/CM) Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final Direct CO2: 1 m3 belgian low caloric natural gas (upper value) = 35,28 MJ (Source: Ecofys); Ratio between lower and upper value = 0,9; 1 m3 belgisch belgian high caloric natural gas (lower value) => 35,28*0,9 = 31,752 MJ; emission factor belgian gas /MJ = 55,82 (Source IPCC); 1 m3 belgian low caloric natural gas => 55,82*31,752/1000=1,7724 kgco2 Combust CH4/N2O: Emissiefactoren Aardgas v1.3.xlsx, Tab resultaten, CO2e emissions, Eneco Business, Emission factor (kg CO2/CM) Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final Page: 25 van 34

26 Parameter Natural gas Eneco Group Properties (Biogas) Natural gas - Grid losses District heating supply - Eneco Group Total District heating properties - Eneco Group Total District heating Grid losses Road traffic - Petrol Road traffic - Diesel Road traffic - LPG Road traffic - Ethanol Road traffic - CNG Road traffic - Groen gas Source reference Biogenic emissions: Ecofys 'Toelichting rijden op aardgas /groen gas' Direct CO2: N/a CH4, N2O: Defra 2013, Tab 'Fuels', Gaseous fuels, Natural gas, Energy - Net CV converted Indirect CO2: Ecofys 'Toelichting rijden op aardgas /groen gas' Direct CO2: /Soortelijke_massa_van_gassen (Natural gas released by leakage consists of 0.89% CO2. The specific gravity of CO2 / natural gas is 1,97 (0,0089*1,97*1=0,0175)). Direct CH4: Kiwa, Methaanemissies door gasdistributie, 29 mei 2012 (Natural gas released by leakage consists of 81,3% Methane. The specific weight of methane / natural gas is 0,72. CH4 has a GWP of 25 CO2eq (0,8130*0,72*25=14,63)). N2O: N/a Indirect CO2: Ecofys, Emissie factor Coal Gas Nuclear for ENECO final.xlsx Calculation according to NVN Calculation according to NVN Calculation according to NVN Biogenic emissions: - Direct CO2,CH4, N2O: Defra 2016, Tab 'Fuels', Liquid fuels, Petrol (average biofuel blend)*, unit litres Indirect CO2: Defra 2016, Tab 'WTT-Fuels', Liquid fuels, Petrol (average biofuel blend)*, unit litres Biogenic emissions: - Direct CO2,CH4, N2O: Defra 2016, Tab 'Fuels', Liquid fuels, Diesel (average biofuel blend)*, unit litres Indirect CO2: Defra 2016, Tab 'WTT-Fuels', Liquid fuels, Diesel (average biofuel blend)*, unit litres Biogenic emissions: - Direct CO2,CH4, N2O: Defra 2016, Tab 'Fuels', Gaseous fuels, LPG, unit litres Indirect CO2: Defra 2016, Tab 'WTT-Fuels', Gaseous fuels, LPG, unit litres Biogenic emissions: Defra 2016, Tab 'Outside of scopes', Biofuels, Bioethanol, x85% Direct CO2: Defra 2016, Tab 'Bioenergy', Bioethanol+ Tab 'Fuels', Petrol (average biofuel blend), Bioethanol / Petrol (85% Blend biofuel with conventional fuels) Indirect CO2: Defra 2016, Tab 'WTT-Bioenergy', Bioethanol+ Tab WTT-Fuels /Petrol (average biofuel blend), Bioethanol / Petrol (85% Blend biofuel with conventional fuels) All emissions: Ecofys 'Toelichting rijden op aardgas /groen gas' All emissions: Ecofys 'Toelichting rijden op aardgas /groen gas' Page: 26 van 34

27 Parameter Road traffic - Electricity Road traffic Petrol (per km) Road traffic Diesel (per km) Road traffic LPG (per km) Road traffic Hybrid (per km) Road traffic Electric (per km) Road traffic Carpool (per km) Road traffic - Motorcycle/Scooter (per km) Road traffic Bus (per km) Public Transport - Train Source reference Direct CO2: Rijden op 100% groene stroom met Eneco HollandseWind -> N/a CH4, N2O: N/a Indirect CO2: CE Delft, Ketenemissies hernieuwbare elektriciteit, april 2010, pag 2, tabel 1, wind offshore Biogenic emissions: - Direct CO2, CH4, N2O: Defra 2016, Tab 'Passenger vehicles', Cars (by size), Average car, Petrol Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', Cars (by size), Average car, Petrol Biogenic emissions: - Direct CO2, CH4, N2O: Defra 2016, Tab 'Passenger vehicles', Cars (by size), Average car, Diesel Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', Cars (by size), Average car, Diesel Biogenic emissions: - Direct CO2, CH4, N2O: Defra 2016, Tab 'Passenger vehicles', Cars (by size), Average car, LPG Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', Cars (by size), Average car, LPG Biogenic emissions: - Direct CO2, CH4, N2O: Defra 2016, Tab 'Passenger vehicles', Cars (by size), Average car, Hybrid Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', Cars (by size), Average car, Hybrid Direct CO2: N/a CH4, N2O: N/a Indirect CO2: Calculated based on BMW i3 performance (22kWh for ca 150 km) and CE Delft, Ketenemissies hernieuwbare elektriciteit, April 2010, page 2, table 1, wind offshore. Biogenic emissions: - Direct CO2, CH4, N2O: Defra 2016, Tab 'Passenger vehicles', Cars (by size), Average car, 50% of the weighted average Petrol and Diesel Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', Cars (by size), Average car, 50% of the weighted average Petrol and Diesel Biogenic emissions: - Direct CO2, CH4, N2O: Defra 2016, Tab 'Passenger vehicles', Cars (by size), Motorbike, Average Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', Cars (by size), Average car, Motorbike, Average Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- land', Bus, Average local bus Indirect CO2: Tab 'WTT-pass vehs & travel-land', Bus, Average local bus Direct CO2: CO2-uitstoot ( Energieverbruik door treinen in Nederland, page 45, Annual report NS 2013) CH4, N2O: Defra 2016, Tab 'Business travel- land', National Rail Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', National Rail Page: 27 van 34

28 Parameter Public Transport - Bus, Tram, Metro Public Transport - mix OV Road traffic - Cycling / Walking Home work Air Travel Medium Long Average Air Travel Medium Long Business Air Travel Medium Long Economy Air Travel - Short Average Air Travel - Long Average Source reference Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- land', light rail and tram Indirect CO2: Defra 2016, Tab 'WTT- pass vehs & travel- land', light rail and tram Direct CO2: Calculation average of train ( Energieverbruik door treinen in Nederland, page 45, Annual report NS 2013), Tram, Metro en Bus (Defra 2016, Tab 'Business travel- land', Light rail and tram, London Underground, Local average bus) Directe CH4 en N2O: Calculation average of Train, Tram, Metro en Bus (Defra 2016, Tab 'Business travel- land': National Rail, Light rail and tram, London Underground, Local average bus) Indirect CO2: Calculation average of Train, Tram, Metro en Bus (Defra 2016, Tab 'WTT- pass vehs & travel- land', National Rail, Light rail and tram, London Underground, Local average bus) Direct CO2: N/a CH4, N2O, Indirect CO2: N/a Direct CO2: N/a CH4, N2O, Indirect CO2: N/a Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Short-haul, Average passenger, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Short-haul, Average passenger, Without RF Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Short-haul, Business class, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Short-haul, Business class, Without RF Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Short-haul, Economy class, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Short-haul, Economy class, Without RF Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Domestic, Average passenger, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Domestic, Average passenger, Without RF Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Lang-haul, Average passenger, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Lang-haul, Average passenger, Without RF Page: 28 van 34

29 Parameter Source reference Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Lang-haul, Business class, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Lang-haul, Business class, Without RF Air Travel - Long Business Air Travel - Long Economy Direct CO2, CH4, N2O: Defra 2016, Tab 'Business travel- air', Lang-haul, Economy class, Without RF Indirect CO2: Defra 2016, Tab 'WTT- business travel- air' Lang-haul, Economy class, Without RF Accommodation services 'Accommodation services', Accounting, bookkeeping and auditing services; tax consulting services Advertising and market research services Architectural and engineering services; technical testing and analysis services Basic iron and steel 'Accounting, bookkeeping and auditing services; tax consulting services', 'Advertising and market research services', 'Architectural and engineering services; technical testing and analysis services', 'Basic iron and steel', Page: 29 van 34

30 Parameter Source reference Computer programming, consultancy and related services Computer, electronic and optical products Construction Creative, arts and entertainment services Education services 'Computer programming, consultancy and related services', 'Computer, electronic and optical products', 'Construction4', 'Creative, arts and entertainment services', 'Education services', Electrical equipment 'Electrical equipment', Employment services Fabricated metal products, excl. machinery and equipment and weapons & ammunition Financial services, except insurance and pension funding Food and beverage serving services Forestry products Furniture 'Employment services', 'Fabricated metal products, excl. machinery and equipment and weapons & ammunition /25.5-9', 'Financial services, except insurance and pension funding', 'Food and beverage serving services', 'Forestry products', 'Furniture', Page: 30 van 34