Guernsey Electricity. Environmental Sustainability Strategy

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1 Guernsey Electricity Environmental Sustainability Strategy Published: September 2018

2 1 Guernsey Electricity Environmental Sustainability Strategy Contents Page Foreword 2 Introduction 3 Guernsey Electricity s current approach to Environment 5 Focus on Continuous Improvement 6

3 Guernsey Electricity Environmental Sustainability Strategy Foreword We recognise that carbon emissions are a global issue and it is vital that Guernsey is not only part of the debate but an active member of the wider community working to reduce carbon emissions. We acknowledge that we have an important role to play in delivering a low-carbon economy if Guernsey is going to meet its commitment of a 80% reduction of carbon emissions on 1990 levels by As a business, we have already taken steps to reduce our emissions by 66% on our 1990 levels. This financial year 86% of the energy supplied by Guernsey Electricity is low carbon. We also appreciate that aligning our carbon reporting with best practice guidelines is essential for businesses based on Guernsey with global or UK headquarters which are required or volunteer to report on their greenhouse gas emissions. Our new ISO14001:2015 Environmental Management System (EMS) and emissions reporting will allow them to provide reports, safe in the knowledge that the data we disclose is in accordance with international standards. As part of this commitment we will also continue to invest in the future to ensure we have a reliable power source to meet the future demands of our island, which also aligns with Guernsey s environmental sustainability and climate change goals. I fully support this strategy and look forward to the exciting times ahead as we continue our energy transition towards a low carbon future. Alan Bates CEO, Guernsey Electricity

4 3 Guernsey Electricity Environmental Sustainability Strategy Introduction Overview Core to Guernsey Electricity s activity is serving Guernsey and this includes balancing security of supply, cost and environmental impacts. As a business, our environmental vision is to continually strive for environmental improvement, and to make a positive contribution to our island environment for today and for the benefit of future generations. This document sets out our Environmental Sustainability Strategy for ; a period that has been recognised as being challenging yet thoughtprovoking as we strive to respond to many internal and external drivers, including an evolving energy policy, carbon reduction targets, changes in the fuel market and rapid innovations in the energy system. Sustainability can be defined as meeting the needs of people and business today without reducing the capacity of the environment to provide for future generations. Our key policy principles are to: Fully implement a globally recognised EMS to ISO 14001, the international standard for Environment Management Systems (EMS). Comply with all applicable legal and other requirements in the management of the environmental impact of our operations. Conduct our business in a manner that aims to protect the environment and prevent pollution. Develop and promote an integrated approach to emergency response planning. Consider environmental sustainability issues in our strategic investment and corporate planning. Promote and support environmental sustainability and biodiversity awareness within the company and local community. Consider environmental performance when procuring new products and services. The focus of this Environmental Sustainability Strategy is to embed a strong environmental sustainability governance, culture, and risk management system within Guernsey Electricity and to support the realisation of our Environmental Sustainability Policy through a phased 5-year implementation plan. The ultimate aim of this Strategy being to embed the question: How do our activities impact our island today and tomorrow? into all business decisions. for SMEs a practical guide for SMEs ISO 14001:2015 Environmental management systems

5 Guernsey Electricity Environmental Sustainability Strategy Environmental Performance Journey As a business, we are committed to continue to support a move towards a low carbon economy, be it our own carbon reduction journey or to support the adoption of local renewables, whether on a macro (offshore wind) or micro (domestic roof mounted PV) level. Our existing cable between Jersey and Guernsey, GJ1, enables 86 % of our 87 MW maximum energy demand to be low carbon (34 % from hydro-electric, 52 % nuclear), thus greatly reducing the amount of energy that needs to be generated on island. This equates to a reduction in carbon intensity from 170 gco equiv./kwh in 2016/17 down to 118 gco equiv./kwh in 2017/18. Guernsey Electricity s long-term strategy is to continue to invest and plan for further cable links between Guernsey and Jersey and direct from Guernsey to France, which will decrease our on-island impacts and air emissions still further the carbon intensity of hydroelectric is 6 gco e/kwh and nuclear energy is 4 gco e/kwh. We are also taking measures to further reduce our carbon emissions with the installation of Solar Panel Arrays, such as the one we installed at the Vale site earlier this year, which will have an expected annual generation potential of 116,000 kwh. We are also in the process of phasing in Electric Vehicles to our fleet. The Company is also planning for an energy transition where a greater proportion of energy is created by distributed renewable generation which is then stored within the network. Customers would then use this energy to power their lives including heating and transportation. This would further reduce emissions for the island. Guernsey Electricity Emission Reduction Target Total emissions 11% DOWN IN ONE YEAR % % 4

6 5 Guernsey Electricity Environmental Sustainability Strategy Guernsey Electricity s current approach to Environment GHG Reporting: Leading the way In April 2018, Guernsey Electricity introduced a new Greenhouse gas (GHG) emissions reporting system for the business, to align the company with best practice guidelines and requirements outlined in the Paris Agreement, which will come into force in The new reporting methodology now enables us to disclose all of GHG emissions, rather than just carbon as previously. The data can also be broken down into direct emissions sources, such as fuel used in energy generation and company vehicles, as well as indirect emissions, for example imported electricity. This is possible using the international accounting tools, the GHG Protocol and the UK s Environmental Reporting Guidelines. SF6 N20 PFCs CO2 CH4 HFCs SCOPE 2 INDIRECT SCOPE 1 DIRECT SCOPE 3 INDIRECT PV Generation Transmission losses across import cable Business travel Energy for own use Company vehicles Energy Generation

7 Guernsey Electricity Environmental Sustainability Strategy Focus on Continuous Improvement Over the 5-year strategy period, the business will continue to focus on environmental sustainability risks and opportunities as part of our ISO 14001: 2015 aligned Environmental Management System. The key focus areas being identified as being high priority for Guernsey Electricity, namely: 1. Greenhouse Gas emissions 2. Stack emissions 3. Emergency response 4. Sustainable procurement 5. Governance The proposed supporting approaches fall within the following three focus areas and timescales: 1. Focus Area I: 0 2 years (Environmental Management System (EMS)) 2. Focus Area II: 2-3 years (Environmental Performance) 3. Focus Area III: 3-5 years (Environmental Influence) Focus Area III (Environmental Influence) As well as leading the way with our environmental management and carbon reporting, will be also be looking for future opportunities to build upon and share our achievements with our customers, suppliers and the community, whilst providing an opportunity to influence the way others think, learn and consider the environment (e.g. carbon reduction targets, green tariffs, low carbon technology). There is an increasing recognition that good environmental performance makes good business sense. Environmental risks and uncertainties impact to some extent on all companies, and affect investment decisions, consumer behaviour and Government policy. Management of energy, emissions or waste will affect current performance; failure to plan for a future in which environmental factors are likely to be increasingly significant may risk the long-term stability of a business. (DEFRA, 2016) Focus Area I (Environmental Management System (EMS)) In 2016, we completed the development of our ISO14001:2015 Environmental Management System EMS). In recognition of the need to fully test and integrate the management system, we committed 2017 and 2018 to the implementation of the EMS across the business. Focus Area II (Environmental Performance) Increasing our understanding of our environmental performance will be a key focus for 2018 onwards. Periodic reviews of our existing activities, the products we use and the services we provide will potentially lead to environmental improvement and innovation, which in turn may result in further cost and efficiency benefits. This focus area will also build upon the existing community based environmental sustainability initiatives that Guernsey Electricity and its employees have supported to date, which include annual Marine Conservation Society beach cleans around Guernsey, wildlife planting and the installation of small bird boxes around the Vale Power station site, and an annual school environmental awareness and energy efficiency programme. Final Thoughts Environmental sustainability requires long-range thinking and strategic planning for the future. This includes appreciating that, at times, regulation and demand will lag behind the best interests of industries, customers and communities. The companies with the best sustainability practices will suffer the least when legislation and consumer demand fundamentally alter the business case in favour of strong environmental management. UK Climate Change Committee (2015)

8 PO Box 4 Electricity House North Side, Vale Guernsey, GY1 3AD