1. Strategy and analysis

 

G3 core indicators incl. indicators of Sector Supplement Electric UtilitiesPageStatus


1. Strategy and analysis

1.1 Statement from the CEO and the supervisory board chairpersonForeword
Video message
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1.2 Description of key impacts, risks and opportunitiesGroup Portrait
Challenges of the value chainGermanyIssues and challengesMateriality Analysis 2012Modernisation of the power-station portfolio
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2. Organizational profile

 

G3 core indicators incl indicators of Sector Supplement Electric UtilitiesPageStatus


2. Organizational profile

2.1 Name of the companyRWE AGFully
2.2 Primary brands, products and/or servicesGroup Portrait
For our customersKey Data Tool: Market positions
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2.3 Operational structure and major divisionsGroup Portrait
AR 12, 51
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2.4 Location of organization’s headquartersEssen, GermanyFully
2.5 Number/names of countries with either major operationsOur regionsGermanyNetherlands, Belgium, LuxembourgUnited KingdomCentral and Eastern Europe, TurkeyWestern and Southern Europe, SwitzerlandNorwayNorth Africa and Central AsiaOther Countries
Fully
2.6 Nature of ownership RWE AG AR 27Fully
2.7 Markets servedOur regionsGermanyNetherlands, Belgium, LuxembourgUnited KingdomCentral and Eastern Europe, TurkeyWestern and Southern Europe, SwitzerlandNorwayNorth Africa and Central AsiaKey Data Tool: Customers, External electricity & gas sales volumeFully
2.8 Scale of the reporting organizationKey Data Tool: Financial figures, WorkforceAR 59, 132
The main products of RWE are electricity, gas and heat. We carry out exploration for oil and gas, distribute electricity and market energy services to our customers. We present our value chain, offers for our customers and selected tariffs. Specific statistics cannot be provided for all products and services including all tariffs because some relate to special regional offers.
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2.9 Significant changes regarding size, structure, or ownership Group Portrait
Strengthening the region
AR 27
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2.10 Awards received in the reporting periodAR 124Fully
EU1 Installed capacityGroup PortraitGermanyNetherlands, Belgium, LuxembourgUnited KingdomCentral and Eastern Europe, TurkeyWestern and Southern Europe, SwitzerlandKey Data Tool: Power plant capacity
The thermal capacities of our combined heat and power plants by countries:
Germany = 413 MW
Netherlands = 576 MW
UK = 443 MW
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EU2 Net energy output broken down by primary energy sourceGroup Portrait
Key Data Tool: Power generationAR 53
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EU3 residential, industrial and commercial customer accountsGroup PortraitGermanyNetherlands, Belgium, LuxembourgUnited KingdomCentral and Eastern Europe, TurkeyKey Data Tool: CustomersAR 57-59Fully
EU4 Length of transmission and distribution linesGroup Portrait
GermanyCentral and Eastern Europe, TurkeyReliable grid operation
Fully
EU5 Allocation of CO2 emissions permitsKey Data Tool: CO2-emissionsAR 55Fully

3. Report parameters

 

G3 core indicators incl. indicators of Sector Supplement Electric UtilitiesPageStatus


3. Report parameters

3.1 Reporting periodReport ProfileFully
3.2 Date of most recent previous reportApril 2012Fully
3.3 Reporting cycleReport ProfileFully
3.4 Contact point for questions regarding the reportImprintFully
3.5 Processes for defining report contentMateriality Analysis 2012Report ProfileIndependent Assurance ReportFully
3.6 Boundary of reportReport ProfileFully
3.7 Statement on specific limitations concerning the report’s scopeReport ProfileFully
3.8 Basis for the reporting on joint ventures, subsidiaries etc.Report ProfileFully
3.9 Data measurement techniques and bases of calculationsOur CR-ManagementReport ProfileFully
3.10 Explanation of any restatements of informationThere are no adjustments to data from earlier reports.Fully
3.11 Significant changes from previous reporting periodsReport ProfileFully
3.12 GRI IndexReport Profile
Index according to GRI
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3.13 External verification of the reportReport Profile
Independent Assurance Report
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4. Governance, commitments, and engagement

 

G3 core indicators incl. indicators of Sector Supplement Electric UtilitiesPageStatus


4. Governance, commitments, and engagement

4.1 Governance structure, incl. responsibility for sustainabilityAR 104-107Fully
4.2 Independence of the supervisory board chairpersonAR 104-107Fully
4.3 No. of independent supervisory board membersAR 104-110Fully
4.4 Mechanisms to provide recommendations to highest governance body Fit for the future
Employees outside EuropeAR 26back cover: Financial Calendar 2013/2014
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4.5 Linkage between senior management compensation and sustainability goalsCR-StrategyAR 111-117, 120Fully
4.6 Processes to ensure conflicts of interest are avoidedAR 104Fully
4.7 Expertise of highest governance body in terms of sustainabilityCR-StrategyOur CR-ManagementFully
4.8 Corporate mission, values, and Codes of ConductOther management systems
Supply Chain
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4.9 Board-level processes for overseeing sustainability performance CR-StrategyAR 104-107Fully
4.10 Processes for evaluating the highest governance body`s performance on sustainability mattersAR 117
The Rules of Procedure for the Supervisory Board state in §1(3): "The Supervisory Board shall review the efficiency of its activity regularly, at least once after its members have completed half of their regular tenure."
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4.11 Implementation of the precautionary principleOther management systemsFully
4.12 External initiatives that the organization endorsesOur CR-ManagementHard coal
Biomass
Goods and services
Evaluation
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4.13 Significant memberships in industry and business associationsOur CR-ManagementBiomass
Goods and services
No further donations are made above the standard membership fee.
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4.14 List of stakeholder groups engaged by the organizationStakeholder dialogue
Report Profile
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4.15 Basis for identification and selection of stakeholders to engageIssues and challenges
Stakeholder dialogue

We are open to all stakeholder issues. A preliminary selection process does not therefore take place.
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4.16 Approaches to stakeholder engagement (type/frequency)Materiality analysisStakeholder dialogueFully
4.17 Response to key concerns raised by stakeholdersMateriality analysisOur CR-ManagementStakeholder dialogue
Report Profile
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5. Management approach and performance indicators

 

G3 core indicators incl. indicators of Sector Supplement Electric UtilitiesPageStatus


5. Management approach and performance indicators

Economic - Management approach (incl. EU6, EU7, EU81 , EU9)Group Portrait
Our regions
GermanyNetherlands, Belgium, LuxembourgUnited KingdomCentral and Eastern Europe, TurkeyWestern and Southern Europe, SwitzerlandNorwayNorth Africa and Central AsiaOther CountriesOther management systems
Energy efficiency
For our clientsSmart Meter
Innovation
Renewable electricity generation
Grid infrastructure and storage technologies
Use of carbon dioxide
Security of Supply
Reliable grid operation
Reliable power plant operation
Community Engagement
AR 103, 168, 172f.
Fully / Partially (EU8)
EC1 Direct economic value created and distributedSocial commitment
Key Data Tool: Value added
Fully
EC2 Financial implication of climate changeClimate protection
Adaption on climate change
AR 15, 33f., 46f., 55f. 92
The Executive Board engages in control processes that address the financial risks and opportunities that are associated with climate change. However, competitive considerations mean that the results are not published.
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EC3 Coverage of benefit pension plan obligations Key Data Tool: personnel expensesPR 58AR 168-172Fully
EC4 Financial assistance received from governmentModernisation of the power-station portfolio
Plant operations
AR 27
RWE does not receive any financial subsidies from the Government for its operative business. RWE also finances all investments from its own resources. RWE only receives financial subsidies from government agencies for R&D activities and agricultural subsidies from the EU amounting to about € 424,000
Fully
EC6 Spending on locally-based suppliers2Modernisation of the power-station portfolio
Supply Chain
Strengthening the region

Up to one third of investments in major projects remain in the region.
Partially
EC7 Local hiring for senior management positions

About 75 % of upper management in our non-German companies are local employees from the country in question.

We generally appoint mixed teams to management positions in our foreign companies, comprising employees from the host country and from Germany.

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EC8 Infrastructure investments and services provided primarily for public benefit

Clean development Mechanism/ Joint Implementation (CDM/JI)Strengthening the region
Community engagement

We analyse the needs of the communities in the course of project development (Environmental and Social Impact Assessment). A detailed review of the results is not possible due to the large number of project developments.

Fully
EU10 Planned capacity vs. projected electricity demand3CR-Programme
Modernisation of the power-station portfolio
Partially
EU11 Average generation efficiency

Modernisation of the power-station portfolio
Energy efficiency
The energy efficiency of our power plants by country and energy source.

Germany
Lignite = 35.70 %
Hard coal = 37.45 %
Gas = 47.24 %
Gas CHP = 66.35 %

United Kingdom
Hard coal = 36.60 %
Gas CHP = 53.08 %

Netherlands
Hard coal = 36.62 %
Gas = 35.51 %
Gas CHP = 63.50 %

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EU12 Transmission and distribution efficiencyReliable grid operationFully
Environmental - Management approachGroup Portrait
Additional management systemsCR-Programme
Climate protection
Modernisation of the power-station portfolio
Energy efficiency
Fuel availability
Environmental management
Plant operations
Energy efficiency
Waste
Biodiversity
AR 123
Fully
EN1 Weight/volume of materials used

Key Data Tool: Fuels

All transformers operated by RWE have been converted to PCB-free transformers so that no PCB-contaminated materials are held in the inventory of RWE.

Fully
EN2 Percentage of materials used that are recycled4Not
EN3 Direct energy consumption: primary sources used by companyKey Data Tool: Fuels
435.7 TWh = 1.568.5 Petajoule
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EN4 Indirect energy consumption: primary sources used through energy purchased5Not
EN8 Total water withdrawal by source

Key Data Tool: water

Withdrawal: 11,209 billion m³, of which 636 billion m³ is groundwater; 8,011 billion m3 is surface water; 2,521 billion m3 sea-/brackish-water, 10 billion m3 drinking water, 31 billion m3 is from other sources

Treatment of ash with water and washing coal with water does not take place at RWE.

Fully
EN 11 Land used in protected areas6Plant operations
Biodiversity
Partially
EN 12 Significant impacts of activities on protected areasPlant operations
Biodiversity
Fully
EU13 Biodiversity of replacement habitatsBiodiversityFully
EN 16 Total direct and indirect greenhouse gas emissions by weight

Key Data Tool: CO2-emissions

Reporting of CO2 emissions for communication to consumers is not possible because we purchase base-load electricity on the Energy Exchange where we receive no information on its origin.

Specific CO2 emissions for countries for total electricity generation:
Germany = 0.874 t CO2/MWh
United Kingdom = 0.585 t CO2/MWh
Netherlands = 0.549 t CO2/MWh
Hungary = 1.205 t CO2/MWh

Specific CO2 emissions for countries relating to electricity generation from fossil energy sources:
Germany = 1.198 t CO2/MWh
United Kingdom = 0.644 t CO2/MWh
Netherlands = 0.627 t CO2/MWh
Hungary = 1.205 t CO2/MWh

Fully
EN 17 Other relevant indirect greenhouse gas emissions by weightKey Data Tool: CO2-emissionsFully
EN 18 Initiatives for reducing the emission of greenhouses gasesGroup Portrait
CR-Programme
Climate protection
Modernisation of the power-station portfolio
Fully
EN 19 Ozone-depleting substances by weightNegligible amounts of ozone-depleting substances, including in particular chlorinated hydrocarbons, are used by RWE in the core processes, so that these are not recorded separately.Fully
EN 20 NOx, SOx, and other significant air emissions

Key Data Tool: Pollutant emissions

We do not record any further air pollutants in standard reporting because this is not technically possible at the plants.

Fully
EN 21 Water discharge by quality and destinationWater use
Key Data Tool: water
The pollutant concentrations of wastewater discharged from the power stations are defined by the regulatory authorities and monitored. The permissible limits ensure that the ecological equilibrium of surface waters is not compromised.
Fully
EN 22 Total weight of waste by type and disposal methodPlant operationsKey Data Tool: Waste
The reprocessing of irradiated nuclear fuel has not been permitted since 1 July 2015 (Article 9a Section 1 Atomic Energy Act (AtG)). In Germany, the Federal States are responsible for final disposal of radioactive waste in accordance with Article 9a Section 3 Sentence 1 Atomic Energy Act (AtG).
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EN23 Freisetzung von Schadstoffen nach Anzahl und VolumenEnvironmental protection
Plant operations
Fully
EN 26 Initiatives to mitigate environmental impacts of products and services7Group Portrait
CR-Programme
Climate protection
Modernisation of the power-station portfolio
Partially
EN 27 Percentage of recycled products8Not
EN 28 Fines and sanctions for non-compliance with environmental regulations During the period under review, a regular internal survey recorded no significant monetary fines and no non-monetary sanctions for RWE in the area of environment.Fully
Labour practices and decent work –
Management approach (incl. EU14, EU15, EU16)
Other management systems
CR-Programme
Employees and Demographic Change
Fit for the future
Long-term Staff StructureNurturing young talent and personnel developmentDiversityPR 26, 29, 40-44CRR2011 98
Personnel marketing only takes place in the individual country where we are carrying out business activities.
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LA1 Total workforce by employment type, and region9Key Data Tool: WorkforcePR 53f.Partially
LA2 Breakdown of employee turnover by age group, gender, and region10Key Data Tool: WorkforcePR 53, 58Partially
EU17 Total subcontracted workforce

RWE only uses a small proportion of employees from subcontractors to carry out operational functions on a permanent basis. Employees from subcontractors are used for construction and assembly operations, and for maintenance and services.

In 2012, employees from subcontractors worked 84.9 million hours for RWE. A further classification according to the type of work is not possible.

Fully
EU18 health and safety training of contractors and subcontractorsOccupational safety

All employees at construction sites of RWE are trained by subcontractors.
Fully
LA4 Percentage of employees covered by collective bargaining agreements

CRR2011 98PR 54

All subcontractors have made a commitment to the Code of Conduct and are thereby committed to compliance with the principles of the United Nations Global Compact, which also includes the right to collective-bargaining agreements.

Fully
LA5 Minimum notice period(s) regarding operational changesFit for the future
Social Charter
CRR2011 98PR 54
Fully
LA7 Injuries, absentee rates and work-related fatalities by region11Occupational Safety and Healthcare Management
Key Data Tool: Occupational Health & SafetyPR 59
Partially
LA8 Prevention and risk-control programs regarding serious diseasesOther management systems
Nurturing young talent and personnel development
CRR2011 98
Fully
LA10 Training hours per year per employee by employee category12Not
LA13 Composition of senior management and breakdown of employees (gender/culture/age)13Diversity
Employees outside Europe
Key Data Tool: Workforce, Age structurePR 54AR 18-22
Fully
LA14 Ratio of basic salary of men to women by employee categoryDiversityFully
Human rights – Management approach

Supply Chain
Code of conduct
CRR2011 98

We carry out Due Diligence for all significant investment projects. This audit also includes a questionnaire on CR aspects. We also review CR aspects for project development.

Our market is Europe and this means that we are not operating in areas at risk of infringing the rights of the indigenous peoples. We are also committed to the United Nations Global Compact and to compliance with its principles. Compliance with the rights of indigenous peoples is also one of the objectives of the ‘Bettercoal’ initiative.

Fully
HR1 Investment agreements with HR clauses or screeningWe carry out Due Diligence for all significant investment projects. This audit also includes a questionnaire on CR aspects. We also review CR aspects for project development.Fully
HR2 Suppliers and contractors that underwent screening on human rights14Supply ChainAR 121Partially
HR4 Incidents of discrimination and actions taken15Not
HR5 Operations with risks to freedom of association/collective bargaining at riskSupply Chain
Employees outside Europe
CRR2011 98
Social Charter
There are no restrictions on the rights of employees in the countries where we are operating (such as the right to collective bargaining agreements and the right to strike) on account of the public security of supply.
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HR6 Operations with significant risk incidents of child labourSupply Chain
CRR2011 98
Social Charter
Fully
HR7 Operations with significant risk for incidents of forced or compulsory labourSupply Chain
CRR2011 98
Social Charter
Fully
Society – Management approach (incl. EU1916 , EU2017, EU2118)Other management systems
Stakeholder dialogue
CR-Programme
Security of Supply
Reliable power plant operation
Credibility and customer satisfaction
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SO1 Policy to manage impacts on communitiesStrengthening the region
We carry out an evaluation of the social and ecological impact in the course of project development (Environmental Impact Assessment, Social Impact Assessment)

Umsiedlung
The environmental effects during the operational phase are continually monitored by the government authorities as prescribed by the Technical Instructions on Air Pollution (TA Luft). We use a regional value-chain statement within the company to review the social implications for large sections of our business. The effects arising from wages and salaries, as well as taxes and orders placed with regional companies are included in the calculation.
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EU22 Number of people displaced by new or expansion projectsWe only carry out resettlements in the course of lignite extraction. RWE pays full compensation for the residents’ property and any removal costs. During the period under review approximately 500 people were affected.UmsiedlungFully
SO2 Business units analysed for risks related to corruption

Other management systems

An external review is currently being carried out to assess whether our Compliance Management System is fit for purpose. A check is also being made on whether the existing risks are adequately recorded.

Fully
SO3 Employees trained in organization’s anti-corruption policies19Other management systemsPartially
SO4 Action taken in response to instances of corruptionOther management systemsFully
SO5 Positions and participation in public policy development and lobbyingPositions on energy policy at RWEFully
SO8 Fines/sanctions for non-compliance with laws and regulationsOur group-wide survey revealed that no penalties have been issued in this area.Fully
Product responsibility - Management approach20 (incl. EU23, EU2421)Other management systems
Energy poverty
Fully
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvements

The risks associated with the use of electrical energy have been well known for a long time and appropriate safety precautions are a fixed element of routine, daily life.

The plants of RWE comply with the valid limit values of the 26th Directive of the Federal Pollutant Control Act (26. BImSchV) of 100 microteslas for the magnetic field and 5 kV/m for the electrical field at all times.

Fully
EU25 Number of injuries and fatalities to the public.We have no information about injuries or death caused by the activities of our company.Fully
PR3 Principles/measures related to product information/labelling

The electricity bill generated by RWE across Europe includes details of the energy mix and CO2 emissions in compliance with the EU Directive 2003/54/EC – regulated in Germany in Article 42 of the Energy Industry Act (EnWG).

Additional information required for the indicator on substances, safe use and product disposal are not applicable to the product and service information of RWE.

Fully
PR6 Programs for adherence of laws and voluntary codes22The RWE Code of Conduct includes the item conduct in contact with the public: “All communications from RWE must be complete, objective, factually correct and comprehensible. They must also be up to date.”Partially
PR9 Fines for non-compliance with regulations concerning the use of products and servicesOur group-wide survey revealed that no penalties have been issued in this area.Fully
EU26 Percentage of population unserved100% supply of electrical energy has been provided to residents, industry and businesses in the sales regions of RWE AG for several decades.Fully
EU27 Number of residential disconnections for non-payment23Not
EU28 Power outage frequency24Not
EU29 Average power outage duration.Security of SupplyFully
EU30 Average plant availability factor25Reliable power plant operation
Credibility and customer satisfaction
Partially

Footer

1We do not report on the allocation of R&D expenses because this relates to information that is included under business secrets.

2At the moment, we are not in a position to report on the proportion of the purchasing budget because we do not have the data available. We intend to report on this by 2015.

3Data on the total projected demand is not appropriate for an economic system of deregulated markets. For example, we are not responsible for the security of supply in sales as an electricity generator, but only in some regions as a base load supplier. However, since the necessary amounts for this can be purchased in the electricity market, there is no direct link to capacities which RWE has available as a generator.

4As far as RWE is concerned, the fuels used are the most important material item. We also recognise the use of biomass here as well. Additional recording of recycling materials is not carried out, because we do not regard them as significant. Hence, the proportion of recycling materials out of total materials is not material as far as we are concerned.

5We do not yet report on our indirect consumption of energy because it has not yet been possible for us to record the information from different energy sources. We want to report on this issue in 2013 and we are now reporting indirect CO2 emissions.

6We are able to give the dimensions of areas for oil and gas production, and for opencast mining, which are in or next to conservation sites. At the moment, we are in the process of also collecting these data for the routes of transmission lines and we intend to report on this in 2013.

7Other environmental effects, apart from emissions, are not relevant to our business.

8This indicator is not relevant for the business of RWE.

9We report in detail for RWE employees. Reporting these data for employees of our partners is not possible. Reporting is very unlikely in the future, because the partner companies are not obliged to disclose these data. This is because otherwise the company requesting the data could recalculate the price structure.

10We cannot yet report details on turnover broken down into categories because these values are not available. We intend to report on this in 2016. We report in our personnel report on the turnover rate for each country. We also report on the age structure and gender-specific employee distribution.

11Data protection reasons entailed that the figures on occupational illnesses and the absenteeism rate are not available for RWE employees or for subcontractors.

12We do not report on hours for career training but on days for career training. The job specification is much more important for these data than the employee category. The extent of coverage by RWE Learning is 56.7% of employees.

13A survey of data on minorities is not permitted in Germany under privacy regulations.

14We are not yet able to report on the percentage of rejected suppliers or suppliers classified as having scope for improvement, because these data are not available. We intend to report on this in 2015.

15We are not yet able to report on the number of incidents of discrimination because these data are not yet recorded. We want to report on this issue in 2013.

16Data cannot be provided for each individual project because of the large number of projects and this information is not material as far as we are concerned. The consultations are usually carried out by the relevant project managers in cooperation with the communication managers of the Group companies.

17We only carry out resettlements in the course of lignite extraction. RWE pays full compensation for the residents’ property and any removal costs. During the period under review approximately 500 people were affected.

18These measures are significantly determined by statutory regulations in the countries where we are operating. In the conventional area, this is regulated by the Federal Pollution Control Act (Bundesimmissionsschutzsgesetz, BImSchG) in conjunction with the fourth, fifth and ninth directives on implementing the BImSchG or appropriate regulation in the other European countries. The Atomic Energy Act (Atomgesetz) also defines a tight legal framework for the nuclear sector, which prescribes these aspects.

19We do not report with classification according to employee category because we have not developed a robust definition on classification. We will attempt to carry this out in the future. We intend to report on this in 2015.

20The aspect of safety and health is not material for us, since all aspects of this issue are subject to statutory regulation in Europe and constitute part of company licences.

21In the past, we have provided information on the hazards of electricity where we have established that there is a need for this. For example, at schools in Poland. However, we assume that the hazards associated with the use of electricity are well known and that caution is a fixed element in daily life.

22The products of RWE are not subject to any marketing prohibition and they are not the subject of public debate.

23However, we are unable to report on the number of customers affected by their electricity supply being cut off due to non-payment because these figures have not been recorded. We intend to report on this in 2013.

24We cannot yet report the Power outage frequency because these statistics are not recorded. We want to report on this issue in 2015.

25Up to now, we have been unable to report on the availability of power stations by energy source and other countries outside Germany, because this is not part of regular reporting. We intend to report on this by 2014.

AR= Annual Report 2012; PR = Personnel Report 2012; CRR2011 = RWE Group CR Report 2011; All core indicators are presented. Some of the numbers are skipped because the additional GRI indicators are not recorded in the index.
A self-assessment we have carried out estimates that the level of compliance with the GRI G3 guidelines is A+. We had this self-assessment checked by the GRI and it was confirmed.

GRI Statement