Principles for Procurement and Use of Biomass in the RWE Group

Biomass gives us the opportunity to generate renewable and carbon neutral energy and thus make an important contribution to climate protection. These processes can, however, be connected to negative effects on humans, society and the environment. To avoid such negative effects along the value chain and in accordance with responsible corporate management, the RWE Group has drawn up the following policy for the procurement and use of biomass.

General Principles

• RWE aims only to use biomass that does not have negative effects on people, society, and the environment.
• When selecting biomass sources for energy use, RWE shall strive for a significant contribution to climate protection, considering all essential process steps in the value chain.
• RWE shall ensure that the RWE code of conduct is observed and adhered to along the entire value chain.
• RWE shall also strive to ensure that the principles of the UN Global Compact are followed along the entire value chain. In particular this includes respecting the rights of others as expressed in the UN Universal Declaration of Human Rights as well as their labour, economic and social rights, taking a precautionary stance with regard to the environment, and a strong commitment against corruption and bribery.
• RWE seeks to actively consult stakeholders on relevant impacts on local communities in the neighborhood of RWE facilities and plantations.
• RWE shall publish material information on the sustainability of the biomass used in its Corporate Responsibility report.
• Biomass which is procured for third parties for physical use is subject to the same standards as biomass procured for RWE.

Additional principles for the cultivation and production of biomass
 
The terms cultivation and production include all agricultural and forestry practices for the production of biomass, whether carried out by RWE companies or third parties. RWE is committed to use only biomass that:

• is not produced at the expense of important carbon sinks
• does not jeopardise local food supply
• does not jeopardise endangered ecosystems
• does not cause permanent damage to the environment, specifically soil quality, water quality and air quality
• does not, through any irrigation required, jeopardise regional water supplies
• does not jeopardise local prosperity and well-being

To achieve this, RWE shall apply sustainability criteria to aspects within its own sphere of influence. Furthermore, RWE shall on request co-operate with governments to enable assessment of undesirable macro effects which fall outside RWE’s direct sphere of influence. However, it must also be recognised that in many cases the use of globally traded agricultural by-products for the production of energy is among the most sustainable uses of such material. In these cases, there will often be practical limits to the quantity and quality of information available regarding the cultivation and production of the primary agricultural product. In such cases, an assessment based on available evidence of the potential risks of violating substantial sustainability criteria shall be undertaken and considered in decision making

Additional principles for the processing of biomass

The term biomass processing includes all chemical, bio-chemical, mechanical and other procedures to convert or condition biomass, and the corresponding installations.

• RWE shall ensure that installations owned or operated by RWE to process biomass are operated in accordance with all applicable legislation and industrial standards such as ISO for environmental management, plant safety and industrial safety to prevent endangering people and soil, water and air quality.

• RWE shall take reasonable and risk proportionate measures to ensure that other installations to process biomass which supply biomass to RWE are also operated in accordance with all applicable legislation and industrial standards such as ISO for environmental management, plant safety and industrial safety to prevent endangering people and soil, water and air quality.

Additional principles for the use of biomass

Under the use of biomass we include biomass used for electricity generation, heating and cooling, transport fuels, and biogas fed into the natural gas network. RWE shall ensure that its own plants which use biomass are operated in accordance with all applicable legislation and industrial standards such as ISO for environmental management, plant safety and industrial safety to prevent endangering people and soil, water and air quality.