We are proud of what we have achieved already, but we know that we need to do more.

Transcription

1 We are proud of what we have achieved aready, but we know that we need to do more. Our Sustainabiity Commitments 1

2 Our Sustainabiity Commitments Some of our sustainabiity commitments have aready been met and we are working hard to hit our remaining 2012 and 2020 targets. We reaise that we need to start addressing a revised set of targets from This is why in the atter part of 2011 we started a fu review with our stakehoders on the materia issues facing ED Energy and our industry in the medium to ong term. Our pans for the next stage of our sustainabiity journey wi be aunched eary in Our Sustainabiity Commitments Performance at a gance AREA Reducing Carbon and Waste COMMITMENT We wi reduce the intensity of CO 2 emissions from eectricity production by 60% by 2020.* We wi cut CO 2 emissions from our commercia buidings by 30% by 2012.** We wi cut CO 2 emissions from our commercia buidings by 30% by 2012.** We wi reduce CO 2 from our transport by 20% by 2012.** We wi reduce CO 2 from our transport by 20% by 2012.** We wi reduce the voume of waste from energy biing by 30% by We wi send no office or depot waste to andfi by The foowing section provides a summary of our performance against each of our current sustainabiity commitments. UNIT tonnes/gwh, Kiotonnes tonnes/te Kiotonnes tonnes/te** tonnes % 2006 BASELINE* ACTUAL STATUS H H H AREA Deveoping Low-Carbon Nucear Responsiby Buiding a Word- Cass Cuture Heping our Customers Serving our Communities COMMITMENT We wi be open and transparent in our nucear business and demonstrate we can be trusted to act to the highest professiona standards in reation to nucear safety issues. We wi support the deveopment within the UK of the skis necessary to sustain our nucear businesses by working with schoos, universities and other bodies. We wi work with government, NGOs and others to demonstrate rea progress towards impementing a ong-term radioactive waste soution. By 2012, 100% of our empoyees understand how they can hep achieve Our Sustainabiity Commitments and wi be participating in Team Green Britain. By 2012, we wi have attained god standard from independent experts for our approach to diversity and incusion.*** We wi buid externa partnerships and physica centres of exceence to deveop the current and future skis we need for a sustainabe economy. We wi reduce the proportion of CO 2 arising from our customers energy consumption by 15% by We wi commit to keeping our prices competitive and wi provide enduring support for our most vunerabe suppy customers unti By 2012, 2.5 miion young peope in the UK wi have participated in our Sustainabe Schoos Programme, earning about the sustainabe use of energy. We wi work with a our suppiers to ensure they meet the 10 principes of the Goba Compact to guarantee an ethica suppy chain. H We above target On or above target Beow target UNIT % miion tonnes number customer accounts (discounted tariffs) miion chidren 2006 BASELINE* miestones met miestones met miestones met n/a miestones met n/a n/a n/a n/a 2011 ACTUAL project on track project on track project on track 75% / 66% project behind target project on track , project on track * Origina baseine did not incude our portfoio of Nucear Generation (acquired in 2009) ** Unit of measure amended to be t/te. Absoute CO 2 aso sti tracked *** On track to achieve the God Standard in Interna project behind target STATUS H

3 Reducing our own carbon and waste 1. In 2007 we pedged to reduce the intensity of CO2 emissions from eectricity production by 60% by This was based on our 2006 baseine of 813g CO2 per kiowatt hour (kwh). Behind target We wi now go beyond our origina commitment by reducing our carbon intensity to no more than 250g/kWh by This is more than a 60% reduction on the 2006 baseine. Since our acquisition of British Energy and the integration of their nucear feet we have reduced the carbon intensity of our eectricity to 208g/kWh 1 in Athough our carbon intensity is on target, we are behind on our new nucear miestones. However, if nucear new buid is deayed beyond 2019, meeting our 60% reduction target of 250g/kWh can be achieved by a mix of ife extension of the existing nucear feets, renewabe and some restructuring made in the hours of operation for our coa stations. Nucear We now own and operate eight of the nine nucear power stations in the UK. This represents 8.7 Gigawatts (GW) of nucear capacity. Last year, our stations generated over 55.8 TWh of eectricity, which heped avoid 33.6 miion tonnes of CO2 emissions had the eectricity been generated by the prevaiing fossi fue energy mix. This woud be the equivaent of removing neary haf of the passenger cars from UK roads. Extending the ife of our nucear power stations makes good economic sense and keeps carbon emissions down now. Pant ifetime extensions to date have saved around 100Mt CO2 that woud otherwise have been emitted by fossi fue power generation. Coa Our main carbon impact is the CO2 emissions from our two 2,000 Megawatt (MW) coa pants at Cottam and West Burton. These wi need to stay open unti there is enough owcarbon energy capacity to repace them. In 2010 we competed a modification programme to these pants to minimise their impacts on the environment Gas We are constructing a 1,305MW Combined Cyce Gas Turbine (CCGT) pant at West Burton which wi come onine in Serving 1.5 miion homes over its 25-year ife, it wi contribute towards our 2020 commitment to reduce carbon intensity. The carbon emissions from a modern efficient gas pant are haf those from a coa pant. Renewabes During 2011, our operationa renewabes portfoio increased by 6.5 MW, with airfied wind farm beginning to operate in the first quarter of At the end of 2011, ED Energy Renewabes operated 20 wind farms with a tota capacity of 268 MW. These are primariy ocated in the north of Engand and Scotand. We continue to be invoved in working towards the deveopment in excess of 1,000 MW of renewabe energy production. In the UK, our renewabes portfoio incudes wind farms both on and offshore. 2. We wi cut CO 2 emissions from commercia buidings by 30% by Behind target We have impemented a wide range of initiatives to reduce CO2 emissions from our commercia buidings. These incude energy audits and instaation of votage optimisers, gas condensing boiers, sub metering, and energy efficient cooing of data centres. We have repaced ighting and air conditioning units and are introducing nightwatch technoogy. This enabes us to power down our IT kit remotey to ensure desktop computers are switched off at night. By the end of 2011 our activity adjusted performance of 1.53 kiotonnes (kt)/te was behind target. However, we are sti on track to meet our 2012 target of 1.42kt/ TE. The current roing year performance based on absoute emissions is 22.7kt compared to 24.1kt in We wi cut CO 2 emissions from our transport by 20% by Target met There has been a steady reduction in the CO2 emissions from transport as the business focuses on questioning the need to trave and utiises more teephone conferencing and video conferencing faciities. We have aready achieved our commitment to cut CO2 emissions from its transport by 20%. At 0.77kt/TE we have met our target for 2012 which was 1.82kt/TE. The current roing year performance based on absoute emissions is 11.5kt compared to 26.2kt in C0 2 equivaent 4 5

4 Deivering ow-carbon nucear responsiby 4. We wi reduce the voume of waste from energy biing by 30% by Our programme of introducing a more fexibe and effective customer service biing interface has aready produced a reduction of 29% in the voume of waste from energy biing. This has argey been achieved as a resut of combining dua fue bis and by eectronic biing. The voume of paper from bis (excuding amended bis) sent to residentia customers is now 119t beow the baseine of 413.4t. It is expected that further savings wi be made as more of our existing residentia customers opt to use this service and given that a high proportion of a newy acquired customers choose eectronic biing. 5. We wi send no office or depot waste to andfi by We are on track to meet this target by 2020, having substantiay reduced waste to andfi from our commercia buidings. Just 12.6% of our commercia buiding waste was sent to andfi in 2011 compared to 61.3% in This is on schedue to be reduced to ess than 10% during A of our empoyees have a specia roe to pay in heping meet this commitment. Our Sustainabiity Ambassadors have continued to act as champions at their respective sites to ensure that messages on how to dispose of waste correcty are proactivey promoted; ensuring our waste bins are ceary abeed and running campaigns at their oca site. A new contract has aso been signed with our waste service provider which specificay requires them to hep us deiver this commitment. A waste management pan is being deveoped for each site that describes each waste type, the quantity and its method of disposa. or sites where some waste is sti sent to andfi aternative options wi be evauated and detaied pans put in pace to meet our target. We are committed to appying the principes of sustainabe deveopment to a of our activities. In our nucear businesses this means: Giving the highest priority to safety and to protecting peope and the environment, and paying a eading roe in the drive for continuous improvement in these areas across the wordwide nucear industry; Maintaining responsibiity for managing our waste, incuding working with government, NGOs and others to demonstrate rea progress toward impementing a ong-term UK radioactive waste soution for the industry; Ensuring there is both the funding and know-how avaiabe to future generations to dea with the decommissioning and waste management needs of our stations; Being open and transparent in these businesses and demonstrating we can be trusted to act to the highest professiona standards in reation to nucear security issues; Not aowing nucear materias from our businesses to be used for non-peacefu purposes; and Supporting deveopment within the UK of the skis necessary to sustain these nucear businesses through our work with schoos, universities and other bodies. It is time to think differenty about nucear Our stakehoders need to fee they can trust us in the key areas of safety and security and want to know more about our ong-term pans for waste. Do we have a cear pan? And can we afford to pay for it? What wi be the impact on oca communities? We understand this need for transparency and reassurance and the very positive roe communication can pay. This is what underies our three specific nucear commitments, set out beow. 6 7

5 6. We wi work with the government, NGOs and others to demonstrate rea progress towards impementing a ong-term UK radioactive waste soution. The government has started the process of site seection for a deep geoogica repository to provide a permanent waste soution for both intermediate and high eve waste. Repositories ike this are aready being deveoped in severa countries around the word incuding in rance, Sweden and inand. We have now started to work with the Nucear Decommissioning Authority, which is responsibe for designing the repository, to confirm in more detai the future disposabiity of radioactive waste from our new buid stations. We wi continue to be responsibe for the management and decommissioning of our current nucear power stations as we as the waste arising from any new nucear pants we buid. We wi set funds aside over the ife of the pant to do this. These funding arrangements wi be contained in a egay binding unded Decommissioning Programme, a draft of which has been submitted to government. A fina version wi need to be approved by the government before we can start any nucear safety-reated construction at Hinkey Point, where we aim to buid two new nucear reactors. 7. We wi be open and transparent in our nucear businesses and demonstrate we can be trusted to act to the highest professiona standards in reation to nucear security issues. We are determined to ensure that openness and transparency is one of the cornerstones of our operating phiosophy at each of our nucear stations. We beieve this is vita in order to buid trust and deveop the understanding that is necessary to drive responsibe ow-carbon investment for the future. This is even more important after the tragic events which unfoded in Japan ast year. We are united through the need to react, and act, in a highy responsibe way, understanding and earning from the facts and acting on them with humiity and eadership. We have estabished a new stakehoder forum to provide guidance and chaenge on key nucear issues and hep buid trust in the industry, post ukushima. Two meetings have been hed at our Head Office on 13 September 2011 and then on 15 March This is part of a wider initiative by ED Energy to increase our contact with key stakehoders and the pubic on nucear issues and an integra part of our commitment to greater openness and transparency on nucear matters. Key stakehoders from industry, academia and pubic ife met with our Chief Executive Vincent de Rivaz and some of his Executive Team to discuss the current approach and make suggestions for improving trust in the industry. The forum discussed a number of issues at their meetings incuding the impact of ukushima, pubic and poitica opinion on nucear both in the UK and internationay, and the need to strengthen trust in the industry. The orum aso discussed nucear safety, the industry s roe in a baanced energy mix and the wider energy market reform agenda. There was broad agreement at the meetings that more needed to be done to inform and engage with the pubic on nucear issues. The feedback has heped to inform a number of company initiatives incuding the deveopment of our Energy utures website, our proposed new visitor centres at our nucear stations and our new website providing reguar pant status information. We pan to hod simiar forums in future and wi be seeking to continue to invove a wide range of stakehoders in these discussions. The company intends to report reguary on its pans for increased engagement with the pubic and stakehoders. 8 9

6 In 2011, we aunched an innovative Energy uture website as part of our continued commitment to openness and transparency. This provides information about the UK s energy chaenge. Empoyees from across the company were invoved in deveoping the site, which examines a key issue we face as a nation: how to generate secure, sustainabe and affordabe eectricity whist aso meeting carbon reduction commitments. We aso started to pubish monthy station reports onine for a of our nucear power stations. These outine station performance for everyone to see. During 2011 we hosted 150 visits from oca schoos and coeges, specia interest groups and oca and nationa poiticians across our operationa sites. Our network of oca ambassadors continued to visit oca schoos, speaking on a variety of subjects from nucear power and eectricity production through to sustainabiity and the oca environment. We have deveoped community newsetters for each of our existing and proposed nucear sites and provided continued support to our Community Liaison Officers. Both ensure that peope in our communities are continuay kept up to date with deveopments in our work programmes which may impact the oca community. During 2011, we competed three years of pubic consutation two main stages of forma consutation and two further focused stages where we engaged with the community and other stakehoders in reation to our appication for a new nucear power station at Hinkey Point C. We directy engaged with amost 6,500 peope, hed 34 exhibitions and attracted 109,000 unique visitors to the project website. or detais of the consutation, stakehoder feedback and how we responded pease see Pubic Consutation. In August 2011, we commissioned an independent survey in oca communities around our nucear sites in Dungeness, Hartepoo, Heysham, Hinkey Point, Hunterston, Sizewe and Torness 2 to measure how effectivey we communicate. Across a sites, 49% of aduts stated they fet favourabe towards nucear power stations compared to 33% feeing unfavourabe. Loca communities around Dungeness fet most positive (67% favourabe) with those in Hartepoo and Torness feeing east positive (43% favourabe). Some 67% of those surveyed agreed that the country needs nucear power as part of the energy baance, whie 17% disagreed. urthermore, 54% of respondents stated they supported new nucear power stations being buit to repace the od stations being phased out and hep fi the energy gap, whie 33% opposed this. Some 58% said they fet informed about nucear power compared to 33% who fet uninformed. Many expressed interest in our nucear power operations in their area (47% were interested across a sites compared to 33% who were uninterested; interest was strong around Hinkey Point with 68% interested in operations). The survey highighted a perceived ack of information and opportunities for more communication with oca communities, as ony 35% fet sufficienty informed about our nucear power operations in their area against 43% who did not fee sufficienty informed. Haf of the peope surveyed fet that we had provided too itte information, whie just 31% fet the amount of information was about right. There was a cear desire for us to engage more with oca communities, increase open and transparent diaogue, and encourage communities more activey to participate in the conversation. Around 31% of respondents fet that we had been open and transparent in communicating to oca peope about the operation of the nucear power stations in their area, whie 22% were neutra on this issue and 38% disagreed. We are committed to improve on this measure consideraby in the future. There is aso a need to more activey encourage oca peope to participate in the conversation as ony 39% fee that we are interested in istening to oca peopes views and sighty fewer (36%) fee that they are given the option to respond or get in touch with us. However, fewer peope disagree with these statements (26% and 31% respectivey). We have aready started to impement a wide ranging programme of actions in response to these findings and we wi report on these pubicy as our pans progress. As part of our commitment to open and transparent business, to keeping oca communities informed and to educating the next generation, we wi aso be opening new visitor centres at each of our nucear sites in We wi support the deveopment within the UK of the skis necessary to sustain our nucear businesses by working with schoos, universities and other bodies. Our ambitious pans for the deveopment of our nucear business in the UK wi ony be possibe if we can successfuy work together with stakehoders to buid the skis base in the UK. We are fuy committed to paying our part in doing so. In 2011, we continued our successfu apprentice training programme and deveoped an Industria Pacement programme. We aso increased the number of our Science, Technoogy, Engineering and Maths (STEM) Ambassadors. These Ambassadors are trained to go out into oca schoos and coeges to promote STEM subjects with the aim of getting students to take up these subjects. We aso have a ongterm commitment to support both the sector skis counci for the chemicas, nucear and petroeum industries (COGENT) and the Nucear Nationa Skis Academy, as we as Energy and Utiities and the Nationa Skis Academy for Power. This work is undertaken with the objective of ensuring that there wi be enough peope with the right quaifications to accommodate the roes we wi need to fi in our nucear business in the future. In order to provide students with exceent quaity work pacements, we have expanded our education and skis programmes. These, combined with our two apprentice schemes and our Graduate Programme ensure the deveopment of strong taent pipeines for the future. 2 Resuts are based on interviews with 7,001 aduts, 18 years +, in communities around 7 nucear sites. Interviews were carried out by ICM research via teephone, using random digit diaing in areas around each of the 7 nucear sites. iedwork was carried out between 10th and 31st August

7 Heping our customers 9. We wi reduce the proportion of CO 2 arising from our customers energy consumption by 15% by Behind target We are using our energy sector expertise and the reationships we have with our residentia and business customers to hep them make the transition to the new ow-carbon word. Major contributors to this commitment continue to be the Carbon Emissions Reduction Target (CERT) and Community Energy Savings Programme (CESP) for insuating and improving the energy efficiency of peope s homes. Contributions to this measure have aso come from products and services providing specific incrementa carbon-saving initiatives SMART metering and reated technoogy 3 and innovations (heat pumps and Soar PV). We wi aso hep our business customers compy with the mandatory Carbon Reduction Commitment. Our initiatives to hep customers reduce their energy use has enabed around 0.8Mt of CO 2 to be avoided to date. Whist this is behind the origina target it does refect the substantia savings accruing from major energy efficiency programmes. Over the coming years there are further significant initiatives aimed at reducing CO 2 arising from customer energy consumption such as Eco and the SMART metering ro-out. In addition we are bringing to market nucear backed owcarbon products such as bue + price promise. The current review of the Sustainabiity Commitments beyond 2012 wi consider in detai further contributing measures to this commitment. 10. We wi commit to keeping our prices competitive and wi provide enduring support for our most vunerabe suppy customers. The main way we measure progress is by the number of customer accounts benefiting from our Energy Assist discounted tariff which provides customers with a 6% discount on their energy. With 159,236 customer accounts, we remain on target. As the first suppier to introduce such a tariff and a range of other forms of support for customers iving in or at risk of fue poverty, we have advocated for a number of years that government paces such support on a mandatory footing to ensure a suppiers are offering equa products and services. We therefore wecomed the fact that from Apri 2011, the government s Warm Home Discount Reguations brought in a new four-year obigation for suppiers to support customers iving in or at risk of fue poverty. This now supersedes our origina, industry-eading Energy Assist discounted tariff and the ED Energy Trust und. Our Customer Commitments, which were aunched in March 2012, outine how we wi go even further for the most vunerabe in society, above and beyond what is required by aw. We are extremey proud of our work in this area. Our awardwinning partnership with Citizens Advice Bureau has aso recenty been awarded a big tick from Business in the Community and aso won a Nationa Exampe of Exceence. or detais of this partnership and other awards we won, pease see: Our Sustainabiity Resuts 3 Measurement representing improved reporting through continuous review 12 13

8 Buiding a word-cass cuture 11. By 2012, 100% of empoyees wi understand how they can hep achieve our sustainabiity commitments and wi be participating in Team Green Britain. Behind target Sustainabiity is an integra part of our strategy and future. As such, every empoyee has a roe to pay as a sustainabiity eader in their own right. No matter how big or sma the contribution of each member of staff, our coective efforts wi hep ensure we deiver our targets. Buiding a word-cass sustainabiity cuture, where a of our empoyees understand how they can pay their part and are activey doing so, is a priority for us. We have made significant progress towards this stretching 100% target since Staff understanding and participation has been particuary driven through activities incuding: Over the ast three years running interna campaigns on Team Green Britain our nationwide community which brings peope together to share ideas for sustainabe iving Sustainabiity programmes such as Heping Hands which provides a empoyees two days of company time to vounteer in the community Sustainabe Steps, our interactive e-earning sustainabiity training Senior eadership sustainabiity training which was deveoped with Cambridge University Despite this progress, we are behind target on this commitment. Our key chaenge has been around measurement of participation as this has reied on empoyees sef-reporting their participation in our annua Empoyee Engagement Survey. In 2011, staff survey resuts suggested ower participation than resuts recorded independenty so activity was being under-reported across our business. To address this mismatch between records of participation and annua survey resuts, we wi be updating our methodoogy in 2012 to measure participation independenty. We sti beieve that empoyee participation wi be under-reported at the end of 2012 though as some staff engagement activities carried out in eary 2012 did not record empoyee participation in a way that can be coated and measured independenty. In the onger term, we are deveoping new systems to track empoyee engagement in sustainabiity activities. We hope to report more on this next year. 12. By 2012, we wi have attained god standard from independent experts for our approach to diversity and incusion. Behind target We are using Diversity Works for London to assess our progress on diversity and incusion. This measures our progress in 34 areas under five categories: Diversity Monitoring and Outcomes; Demonstrating Commitment to Equaity and Diversity; Empoyee Recruitment, Retention and Progression; Organisationa Cuture and Incusion; and Promoting Equaity and Diversity Externay. The God Standard that we aim to achieve by the end of 2012 represents a comprehensive set of good practice statements addressing a aspects of business performance on diversity and incusion, incuding the workforce, marketpace and suppiers. The standard is stretching but fexibe enough to recognise that companies have different equaity and diversity objectives that are appropriate for them and reevant to their industry and sector. As part of this commitment we have created severa diversity networks that bring empoyees together through communications, news and events. These are the Women s Network; Lesbian, Gay and Bisexua Network; Disabiities and Carer s Network, and BAME (Back, Asian and Minority Ethnic) Network. In addition, we have been working with these groups on targeted recruitment and targeted deveopment for underrepresented groups within the company. We are aso focusing on monitoring data, top eve commitment and empoyee engagement as part of the strategy. Accurate data through both monitoring and the empoyee engagement survey wi enabe us to shape future strategies. Top eve commitment demonstrates eadership whist aowing the business units to deiver the strategy, which wi resut in more meaningfu impacts and hep to embed diversity and incusion into business as usua activity. Athough by the end of 2011 this commitment is behind target we have deveoped and impemented a robust pan to achieve the target and are on track to achieve God Standard by the end of We wi buid coaborative externa partnerships and physica centres of exceence to deveop the current and future skis we need for a sustainabe economy. A arge number of our empoyees in the nucear sector are approaching retirement at the same time as a new generation of ow-carbon nucear capacity is needed for the UK. As a resut, we have deveoped a comprehensive taent strategy to address the growing gap and ensure a skied workforce for the future. In particuar, we have: Opened a new 3m energy skis centre at Bridgwater Coege. Our aim is to equip current and future generations in Somerset with the skis they need to make this vision a reaity. Created a training centre and apprenticeship hub at West Somerset Community Coege. This wi support training in specific skis that wi hep peope into empoyment on Hinkey Point C. Launched a construction training centre at Bridgwater Coege, enabing peope with no prior construction experience to gain the skis required to secure jobs on our new buid construction programmes. This wi provide a one-stop shop for training requirements and enabe oca peope to gain skis required to secure a job with contractors on the project. We have extended our partnership with Bridgwater Coege in Somerset and together wi estabish a wordcass Training Centre in the South West of Engand, cose to the proposed site of the new Hinkey Point C nucear pant. Buiding on existing work, this agreement wi see us invest more than 15m to address potentia skis shortages in the energy sector by deivering professiona training, buiding networks within the nucear industry and providing a egacy of growth for empoyees and the oca community. Our campus project has continued to deveop throughout The campus wi enabe peope from a parts of our company and a discipines to mix and earn from each other, pass on invauabe expertise, whie integrating new knowedge, fostering a spirit of innovation and promoting professiona and persona deveopment

9 Serving our communities Definition 14. We wi work with a our suppiers to ensure they meet the 10 principes of the Goba Compact to guarantee an ethica suppy chain. Initiatives to date incude: Assessing the existing practices of our first tier suppiers: Suppiers are categorised at the point of request which assigns a risk score across human rights, environmenta and anticorruption risk areas. Suppiers are sent a UNGC Compiance questionnaire reevant to their eve of risk and any noncompiances are then foowed up (for tactica & everage suppiers they are issued with a Practica Guide which condenses avaiabe iterature about the Compact and educates them as to practica steps they can take to demonstrate compiance; for strategic and critica suppiers suppier deveopment activities are jointy agreed in norma suppier management meetings and improvement actions are tracked. Onine pubication: To aid transparency of our processes and to educate potentia suppiers about our UNGC Commitment, we have started deveoping a suppy chain section on our externa website. This wi outine our commitment and provide access to practica guidance on achieving UNGC compiance such as the management arrangements that can be put in pace to achieve and demonstrate compiance. 15. By 2012, 2.5 miion young peope in the UK wi have participated in our Sustainabe Schoos Programme, earning about the sustainabe use of energy. Target met In September 2008 we aunched to hep educate chidren about the sustainabe use of energy. The Pod is an onine education programme that provides teachers with esson pans, information sheets, assemby presentations, activities, games and a pace for their students to showcase and share their environmenta work. Since its aunch more than 15,800 schoos and over 20,500 teachers have registered to the programme which due to popuar demand has expanded to cover the topics of water, waste, transport, biodiversity and cimate science in addition to its core topic of energy. We have partnered with Eco- Schoos, the Eden Project and recenty the Met office to hep deveop a reay trusted and highy regarded suite of educationa materias and activities. As we as materias that are avaiabe to downoad from the site, the Pod runs two very successfu nationa environmentay themed campaigns each year. In March 2012, 3,700 schoos signed up to Waste Week and we are expecting 5,000 schoos to participate in the Pod s next campaign, Switch Off ortnight, which is now in its fourth year and runs between 19 November and 2 December eedback has shown that campaigns are a fantastic way for schoos to get everyone invoved and working together on a subject or project, they are aso a very good opportunity for them to te parents and the oca community what they are doing. Many schoos have managed to save more than 10% off their energy bis as a resut of taking part in Switch Off ortnight and some have saved more than 20% The Pod, our environmenta education programme has surpassed a of its initia targets. This year it received a Big Tick award from Business in the Community; the programme is now used by teachers in 17 countries and has engaged with more than 5.5 miion chidren CO 2 avoided Definition: Amount of CO 2 that woud have been emitted if the energy generated by Nucear Generation had been produced by fossi fue sources. Tonnes of CO 2 avoided from customer s energy consumption Definition: This wi be deivered through the appication and impementation of various initiatives across our Energy Sourcing and Customer Suppy business unit. The cacuation to demonstrate the emissions reduction is cacuated based on the summation of the actua Tonnes of CO 2 savings of the three sub-initiatives which make up this commitment which are Carbon Emissions Reduction Target Smart Meters and Renewabe, for exampe heat pumps. Tota Net Generation Definition: The output from a our generating pants incuding coa, gas, nucear and renewabe generation as measured at the power station gate. CO 2 (DECC) Definition: The carbon dioxide emissions from our generating pants are determined in accordance with the site specific Environment Agency permits issued under the Greenhouse Gas Emissions Trading Scheme Reguations 2005 (S.I.2005 No 925) ( ETS Reguations ). The UKAS accredited organisation CICS conduct annua verification audits of the greenhouse gas emissions data reported by ED Energy, which once verified are submitted to the Environment Agency and entered onto the EU ETS Registry. CO 2 emissions from business trave (absoute and emissions per TE) Definition: (1) Absoute The annua tota of CO 2 emissions from our feet vehices, car usage for business purposes, incuding taxi, rai and air trave. (2) Per TE The absoute emissions divided by the average TE of ED Energy empoyees during the year. CO 2 emissions commercia buidings (absoute and emissions per TE) Definition: (1) Absoute The annua tota of eectricity and gas consumption measured via meters for ED Energy office buidings. or those buidings not managed by us the current andord s biing is used. The consumption for gas and eectricity is converted from KWh to CO 2 using defined conversion factors pubished annuay by DERA. (2) Per TE The absoute emissions divided by the average TE of ED Energy empoyees during the year. NOx emissions Definition: The emissions of NOx from a of our power stations incuding nucear that are reguated by the Environment Agency under Environmenta Permitting Reguations, and in accordance with the European Poutant Reease and Transfer Register (E-PRTR) Reguations. Data is audited periodicay by Deoitte on behaf of the ED Group. Supher Dioxide (SO 2 ) emissions Definition: The emissions of SO 2 from a of our power stations incuding nucear that are reguated by the Environment Agency under Environmenta Permitting Reguations, and in accordance with the European Poutant Reease and Transfer Register (E-PRTR) Reguations. Data is audited periodicay by Deoitte on behaf of the ED Group. Office and depot waste Definition: Office and depot waste is any waste that arises from ED Energy business activities undertaken at an office or depot. It incudes office waste streams such as paper, cardboard, IT equipment, furniture and pastic cups. It excudes by-products, such as ash from power generation. Office and depot waste is re-used, recyced or disposed of through assigned, dedicated and speciaist disposa routes managed as part of a contract with waste service providers. The voumes of waste are suppied to ED Energy by its waste contractors and business performance reporting of that data is carried out in-house. Processes and procedures are periodicay audited by DNV as part of our ISO and OSHAAS certification. Pod schoos registered Definition: The Pod provides registered teachers with esson pans, resource packs, activities, games and a pace to bog and to share ideas about green issues incuding energy, water, waste, transport, biodiversity and cimate science. It aso provides materias that students can use to inspire parents and the oca community to be greener. Data reating to the number of schoos, teachers and students registered to is sourced from the website s content management system. This system is aso used to measure estimated engagement with the programme. Engagement cacuations are based on registration information provided by users when they register with the site such as the number of pupis in the schoo, the eve and type of interaction with different Pod resources, the target student size for particuar activities and a set of assumptions such as average cass size etc.

10 EBITDA Definition: Earnings Before Interest, Tax, Depreciation and Amortisation. EBIT Definition: Earnings Before Interest and Tax. TE Definition: The u-time equivaent used for this measure is the average number of u-time Equivaent ED Energy empoyees during the year. Empoyee numbers Definition: The number of ED Energy permanent fu and part-time empoyees by headcount, as of Dec 31, 2011 and incudes empoyees on maternity eave. Comparabe figure from 2010 was 15,682. Empoyees on career break were excuded this year. Primariy work-reated i-heath rate Definition: The rate is the number of muscuoskeeta or menta i-heath incidents per year per 1,000,000 hours worked. We count ony those incidents where work has been judged to be the primary cause, measured by an independent assessment of empoyees via sef or management referra to Occupationa Heath and the Empoyee Support Programme. Contractors and agency staff are excuded. LTI rate Definition: The Lost Time Incident (LTI) rate is the number of ost time incidents per 1,000,000 hours worked. Lost Time Incidents are defined as the number of workpace accidents that ead to a day or more off work. A day represents the next fu working day foowing the accident. The measure covers a staff empoyees, agency and contractors. Number of days ost to sickness Definition: The tota number of days of sick eave taken by empoyees in the year. Non-working days (e.g. weekends) during the period of sickness absence are excuded. or part-time empoyees, absence days are pro-rated. Number of eavers Definition: The tota number of empoyees of ED Energy eaving the company during the year for any reason. This incudes resignation, retirement, Empoyees who have a suspended contract of empoyment (e.g. for a sabbatica), who are expatriated or seconded outside the company, departure before the end of a fixed-term contract, departure during tria period, deceased, and dismissa. Number of working hours Definition: The tota number of hours worked by empoyees during the year. This is the annuaised number of days at their contracted working hours for the week ess statutory hoidays, persona annua eave and sickness absence. Empoyee understanding in deivering sustainabiity commitments Definition: The measure is the percentage of peope responding positivey (i.e. agree or tend to agree ) to the question I am cear on what I need to do in my job to hep ED Energy achieve Our Sustainabiity Commitments. This is from our annua Empoyee Engagement Survey. Empoyee engagement survey Definition: To hep us improve the way we engage with empoyees, we appointed Towers Watson during As a eading goba provider of empoyee and organisationa surveys, Towers Watson has aready provided survey design expertise and invauabe support in anaysing resuts and heping us to set priorities for action. The Towers Watson UK Nationa Norm is comprised of a weighted average of empoyee survey resuts from a cross-section of industry sectors for operations ocated in the United Kingdom. The data is derived from recent cient studies conducted by Towers Watson and is updated annuay. The norm incudes data from approx. 178 organisations, representing amost 158,000 empoyees. High Performing Peope Index Definition: The High Performing Peope Index is based on the percentage of favourabe scores across a sub-set of questions taken from our annua Empoyee Engagement Survey. The questions used reate to topics on which high performing companies are differentiated from the rest, and for which comparative norm data exists. Energy Assist and ue Poverty Definition: Our vunerabe customers assisted by means of our discounted tariff are defined as those customers iving in or at risk of fue poverty. The UK Government definition of a househod in fue poverty is one which spends more than 10% of their net income on gas, eectricity or other fues in order to keep warm this in turn is defined using the Word Heath Organisation definition that in order to keep warm, a home shoud be heated to 21 degrees in the ounge and 18 degrees in a other rooms. It is our assumption that househods iving on income support or pension credit benefits are very ikey to be spending more than 10% of their income on energy bis. The discounted tariff, Energy Assist, therefore benefits vunerabe customers who are in receipt of income support or pension credit, or who can otherwise prove that they are fue poor. The figure in the report is captured as customer product accounts and not the number of customers on the Energy Assist tariff. Vunerabe Customers Definition: ED Energy has two definitions of vunerabe customers: those who are vunerabe by virtue of being of pensionabe age, disabed or chronicay sick, and those who are iving in fue poverty by spending more than 10% of their income on energy in order to heat their home to an acceptabe standard. The web ink beow highights what our offers to vunerabe customers on our website are and the document attached detais the type and cost of interventions. Our services for vunerabe customers Priority Services Register Definition: Energy suppiers are obiged to offer a range of free services, known as the priority services register, to their most vunerabe customers. These services are free to join and are avaiabe from a mains gas and eectricity suppiers. The scheme is avaiabe to a househod gas and eectricity consumers who are any of the foowing: of pensionabe age, have a disabiity, have ong-term i heath or have a hearing and/or visua impairment. CERT Definition: The Carbon Emissions Reduction Commitment (CERT) came into effect in Apri 2008, obiging eectricity and gas suppiers in Great Britain to hep reduce carbon dioxide (CO 2 ) emissions from domestic homes. CERT has been extended to December 2012, increasing the target by 108 miion ifetime tonnes of CO 2 and setting a new ambitious target of 293 MtCO 2 across a suppiers. CESP Definition: The Community Energy Saving Programme (CESP) has been created as part of the government s Home Energy Saving Programme. It requires gas and eectricity suppiers and eectricity generators to deiver energy-saving measures to domestic consumers in specific ow income areas of Great Britain. CESP has been designed to promote a whoe house approach and to treat as many properties as possibe in defined areas. This content is assured by Two Tomorrows using the AA1000AS principes. or further information on our assurance statement pease see our Assurance Statement