CR Report 20077MB - Essent
CR Report 20077MB - Essent
CR Report 20077MB - Essent
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2007 CSR <strong>Report</strong> <strong>Essent</strong> N.V.<br />
Being sustainable together.<br />
Sharing dilemma’s.
2007 CSR <strong>Report</strong>
TABLE<br />
OF CONTENTS<br />
Business is something that involves us all 4<br />
We are society<br />
Profile 6<br />
01 Retrospective and outlook<br />
Retrospective 10<br />
Outlook 18<br />
02 Corporate governance of CSR 20<br />
03 Structure of the report and accountability 24<br />
04 <strong>Essent</strong> as a business operator<br />
Tomorrow’s energy 26<br />
Interviews<br />
Paymon Aliabadi, Gerard Hirs<br />
Johan van de Gronden, Richard Schmölzer<br />
06 <strong>Essent</strong> as an employer<br />
Diversity in development 50<br />
Interviews<br />
Monic Bührs, Marie-Christine Osterop<br />
Anouk Rasenberg, Margo van Berkel<br />
07 <strong>Essent</strong> as a corporate citizen<br />
Committed to the community 62<br />
Interviews<br />
Marco Grob, René Savelsberg<br />
Annemarie Moons, Gijsje van Honk<br />
08 Measuring sustainability 74<br />
09 Assurance <strong>Report</strong> 78<br />
05 <strong>Essent</strong> as a market player<br />
Weighting sustainability 38<br />
Interviews<br />
Johan Maris, Helma Kip<br />
Kornelis Blok, Nico Roozen<br />
<strong>Essent</strong> N.V.
www.essent.eu<br />
> Business is something<br />
that involves us all<br />
We are society<br />
This was the guiding principle in 2007 that helped us to even<br />
deeper entrench Corporate Social Responsibility (CSR) in<br />
our corporate policies and our business practices. The Business<br />
Plan, which defines a number of explicit CSR targets,<br />
was an important tool in that regard. In 2008 we will continue<br />
to translate these targets into concrete measures for each<br />
business unit, including key performance indicators (KPIs)<br />
and target values.<br />
Announcing new policies is not enough, not when it comes<br />
to CSR either. An enterprise also has a responsibility to report<br />
on the degree to which its policies have been executed.<br />
For this reason, we published our first separate CSR <strong>Report</strong><br />
(for 2006) in 2007. This explicit report on our CSR efforts<br />
allowed us to initiate highly concrete discussions with our<br />
internal and external stakeholders about our ambitions. In<br />
addition, the publication of the report resulted in a gratifying<br />
rise of <strong>Essent</strong>’s position in the annual Transparency Benchmark<br />
of the Dutch Ministry of Economic Affairs.<br />
Our CSR policy is continually gaining momentum thanks to<br />
our dialogue with stakeholders. We try to align our policies<br />
to their expectations as much as we can by listening carefully<br />
to their recommendations and criticisms. In this report,<br />
sixteen internal and external stakeholders present their<br />
opinions on topics that matter to <strong>Essent</strong>, including energy<br />
technology, the use of bio fuels, staff diversity and our regional<br />
anchorage. We will take their comments to heart<br />
where possible when planning any future steps.<br />
Staff commitment is an absolute prerequisite for the success<br />
of our CSR policy. After all, it is our collective staff<br />
who help us achieve our ambitions. In 2008 we will launch<br />
an internal campaign with a view to bolstering our staff’s<br />
inspiration and motivation. Spurred on by the campaign<br />
motto ‘How on Earth’, every staff member will be asked to<br />
join in on activities to literally improve the social climate<br />
both in and outside our company.<br />
2008 is promising to be an earth-shakingly dynamic year!<br />
Arnhem, the Netherlands, 27 February 2008<br />
Michiel Boersma<br />
Chairman of the Executive Board<br />
4 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
> Profile<br />
<strong>Essent</strong> is a Dutch energy company that supplies electricity,<br />
gas and heat to private and business customers. While<br />
regarding the Netherlands as our home market, we are also<br />
increasingly active in Germany and Belgium.<br />
<strong>Essent</strong>’s operations cover the entire energy chain, from the<br />
generation of energy – excluding exploration and extraction –<br />
to supplying products and services to end-users: large and<br />
small businesses, and private consumers. We also supply a<br />
Energy chain<br />
generation<br />
trade infrastructure sales<br />
electricity<br />
<br />
<br />
<br />
<br />
<br />
gas<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
6 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
variety of products and services, such as equipment<br />
maintenance, energy advice, heat, operating sustainable<br />
energy facilities and micro-cogenerators. We are also<br />
engaged in three waste management activities:<br />
waste incineration, waste composting and landfill management.<br />
On 1 February 2007, <strong>Essent</strong> Kabelcom, a supplier<br />
of cablecom and telecom products, ceased to be a part of<br />
the company.<br />
The 2007 figures show that in the Netherlands <strong>Essent</strong> is:<br />
■ the market leader, with revenue of EUR 7.4 billion;<br />
■ the leading producer and supplier of sustainable energy;<br />
■ owner of Energie:Direct, one of the country’s fastest<br />
growing energy start-ups;<br />
■ leading with its waste management operation, processing<br />
approximately 2.9 million tonnes of waste a year.<br />
<strong>Essent</strong> is a non-listed public company with limited liability.<br />
It was incorporated in 1999 and has its head office in Arnhem.<br />
Its shareholders are Dutch provincial and municipal authorities.<br />
The company comprises 10 business units, 7 of them<br />
forming the Energy Value Chain for the Netherlands, Germany<br />
and Belgium. The remaining operations in Germany are conducted<br />
by swb. The network operation is financially, organisationally<br />
and legally separate from the other activities of the<br />
company. At year-end 2007, the size of <strong>Essent</strong>’s workforce<br />
was over ten thousand.<br />
<br />
<br />
<strong>Essent</strong> N.V. organogram<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
7 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Profile
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> Profile<br />
Revenue per segment - continuing operations <br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2007<br />
2006<br />
2005<br />
7,377.5<br />
5,671.8<br />
1,216.8<br />
378.0<br />
1,001.6<br />
(890.7)<br />
6,441.6<br />
4,588.4<br />
1,241.6<br />
380.2<br />
1,055.6<br />
(824.2)<br />
5,889.6<br />
3,543.8<br />
1,276.2<br />
362.4<br />
993.0<br />
(285.8)<br />
Revenue per country - continuing operations<br />
<br />
<br />
<br />
<br />
<br />
2007<br />
2006<br />
2005<br />
<br />
7,372.7<br />
5,826.5<br />
1,190.5<br />
355.7<br />
6,431.4<br />
4,954.8<br />
1,316.5<br />
160.1<br />
5,875.9<br />
4,621.7<br />
1,133.0<br />
121.2<br />
8 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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People 2007 2006<br />
Number of employees 1 10,223 9,832<br />
% of women 27 27<br />
% of women in management positions 14 14<br />
% absenteeism rate due to illness 4.3 4.2<br />
DART-rate 0.97 1.09<br />
Planet 2007 2006<br />
Number of suppliers who have signed Supplier Code of Conduct 88 15<br />
Donations (in euros) 300,000 300,000<br />
Prot 2007 2006<br />
in millions of euros<br />
Revenue 7,378 6,442<br />
Profit attributable to equity holders of <strong>Essent</strong> 2,594 761<br />
Total equity 5,175 3,414<br />
Total interest-bearing liabilities 724 1,620<br />
Capital employed 8,204 6,559<br />
Power 2007 2006<br />
Total sustainable generating capacity (MW) 1,042 1,065<br />
% of sustainable energy in total generation 10.0 15.2<br />
Number of green electricity customers in the Netherlands 927,000 936,000<br />
Number of green for gas customers in the Netherlands 25,000 15,300<br />
CO ² -emissions (Ktonnes) 2 14,625 14,496<br />
% of solid biomass bearing EGGS label 48 33<br />
1<br />
In FTes excluding <strong>Essent</strong> Kabelcom<br />
2<br />
Emission orginating from electricity and heat generation according to <strong>Essent</strong>ownership<br />
share, excluding emissions from <strong>Essent</strong> Milieu and <strong>Essent</strong> Networks<br />
9 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Profile
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>1Retrospective and outlook<br />
Retrospective<br />
the first results are in<br />
After a thorough exploration in 2006, 2007 was our first<br />
real policy year in terms of Corporate Social Responsibility.<br />
People, Planet, Profit and the fourth P for Power, which we<br />
added ourselves, became serious business. CSR was firmly<br />
cascaded throughout the organisation, on the shop floor and<br />
in the Boardroom. Our Business Plan for 2007 was the first<br />
of its kind to include a chapter on CSR policy.<br />
Two major steps were taken immediately at the beginning of<br />
the year: the introduction of the CSR Advisory Board and the<br />
appointment of CSR Ambassadors to the various business<br />
units. These steps set the stage for the implementation of<br />
our CSR Policy Plan 2007-2010. The Plan identifies three key<br />
policy areas: energy conservation, innovation and employability.<br />
It is encouraging to see that already good progress<br />
was made in all three areas in 2007. Examples included the<br />
<strong>Essent</strong> Energy Conservation Plan launched in cooperation<br />
with our shareholders, the approval of our innovation strategy,<br />
and the willingness on the part of <strong>Essent</strong> – traditionally<br />
a male-dominated company – to introduce measures to ‘get<br />
women to the top’.<br />
These are but a few remarkable milestones that we will discuss<br />
elsewhere in this report.<br />
international benchmark<br />
The road map towards achieving our CSR goals is based on<br />
the following seven strategic principles, which were defined<br />
in 2006:<br />
■ promoting sustainable development and limiting<br />
climate change<br />
■ strengthening our competitiveness in the countries<br />
in which we operate<br />
■ ensuring that our suppliers observe internationally<br />
agreed human rights<br />
■ raising the rate of labour participation for groups that<br />
are currently underrepresented within <strong>Essent</strong><br />
■ raising the quality of work at <strong>Essent</strong><br />
■ raising the quality of life in our environment/surroundings<br />
■ improving safety.<br />
In June 2007 we conducted a review of these strategic principles.<br />
We were interested to find out whether they sufficiently<br />
underpinned <strong>Essent</strong>’s ambition to be a leading sustainable<br />
energy company. The conclusion was that, in order to allow<br />
for a useful comparison with peer businesses, we needed to<br />
model our CSR strategy on international standards. For this<br />
reason, we transformed our seven strategic principles into<br />
the following nine key policy areas, which now make up the<br />
core of our CSR policy:<br />
10 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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■ emissions reduction<br />
■ share of renewable energy in the fuel mix<br />
■ energy conservation, including efficient use<br />
of base materials and fuels<br />
■ innovation and knowledge management<br />
■ customer satisfaction and quality labels<br />
■ good employership<br />
■ human rights<br />
■ corporate citizenship<br />
■ occupational health and safety.<br />
Late in 2007 <strong>Essent</strong> was benchmarked against other large<br />
energy companies in Europe based on the Dow Jones<br />
Sustainability Index (DJSI), the leading global index tracking<br />
the sustainability performance of listed companies. <strong>Essent</strong><br />
is the first Dutch energy company to have its sustainability<br />
performance benchmarked based on the DJSI criteria.<br />
The outcome, which will lay the groundwork for our policy in<br />
2008, provided a mixed picture. The most important conclusions<br />
were that <strong>Essent</strong> could stand the comparison with<br />
other European energy companies where the economic and<br />
social dimensions are concerned, but that there is room for<br />
improvement in respect of the environmental dimension. Our<br />
climate strategy, in particular, is an area where fine-tuning is<br />
in order (for further details, see chapter 8).<br />
pursuing the best options together:<br />
nationally and globally<br />
We are keen to opt for sustainability, and our choice to do so<br />
is a conscious and deliberate one. This is not to say, however,<br />
that we intend to map out each and every route on our own.<br />
Because the challenges are so substantial, we need to join<br />
forces. What is more, if we team up with others, we can<br />
send a strong signal to the market, influence developments,<br />
and show society what we stand for.<br />
The Schokland Agreement was an important milestone in<br />
this regard. On 5 July 2007 Michiel Boersma, the Chairman of<br />
the Executive Board, signed this agreement with the Dutch<br />
government on behalf of a consortium of twenty companies,<br />
centres of excellence and non-governmental organisations<br />
in Schokland, a former island in the IJsselmeer. The parties<br />
to the agreement pledged to develop sustainability criteria<br />
for biomass imports, including a certification system. What is<br />
important is that we can offer the guarantee that the biomass<br />
we use at our plants is sustainably produced and traded in<br />
its country of origin. This allows us to make a contribution of<br />
our own towards eradicating extreme poverty and hunger.<br />
And we are promoting a sustainable living environment and<br />
fair trade at the same time.<br />
The Schokland Agreement is part of Project 2015, a project<br />
launched by the Dutch government to make up for the delays<br />
encountered in achieving the eight Millennium Development<br />
Goals. The parties to the agreement have pledged to put in<br />
place an adequate certification system within six years.<br />
During that time, pilot projects will also be carried out in exporting<br />
countries to promote local knowledge of sustainable<br />
biomass production.<br />
regional base, regional responsibilities<br />
<strong>Essent</strong> has traditionally had regional roots and the provincial<br />
authorities and town councils in our original area of operation<br />
are still our shareholders. We owe it to this region to<br />
take responsibility, preferably in cooperation with our shareholders.<br />
Early in 2007, working with our shareholders, we developed<br />
the <strong>Essent</strong> Shareholders Energy Conservation Plan. Its aim is<br />
twofold: to curb carbon emissions by conserving energy and<br />
moving towards sustainability, and to reduce our customers’<br />
monthly bill through energy conservation. The Plan focuses<br />
on three target groups: households, our shareholders (with<br />
their buildings, facilities and related non-profit institutions),<br />
and the corporate market.<br />
We work with each shareholder to draw up a personalised<br />
Conservation Plan, but we also offer them the possibility of<br />
shared implementation to achieve economies of scale.<br />
We have earmarked a multi-year budget for the Plan:<br />
EUR 5 million in 2007 and EUR 10 million in 2008. The budget<br />
for 2009 will be set after an evaluation is conducted in 2008<br />
(for further details, see chapter 7).<br />
11 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Retrospective and outlook › Retrospective
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Poster sent to all staff<br />
together with Al Gore’s film<br />
‘An inconvenient truth’.<br />
Poster announcing the<br />
introduction of fair trade coffee<br />
within <strong>Essent</strong>.<br />
Een ongemakkelijke waarheid.<br />
Maar ook een uitdagende.<br />
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Maatschappelijk Verantwoord Ondernemen<br />
staff commitment<br />
A CSR policy can only thrive in a company whose management<br />
leads the way and whose staff feel engaged with the<br />
policy objectives. CSR warrants debate, about the need for<br />
sustainable operations and about the choices to be made in<br />
the process. In March 2007, to stir up the debate, we sent all<br />
of our staff a DVD of Al Gore’s film ‘An inconvenient truth’.<br />
The film triggered lively discussions within the company<br />
and awareness grew that – as an energy company – we find<br />
ourselves at the heart of an unprecedented change process.<br />
And that is a process that we actively need to mould<br />
and shape.<br />
responsible food choices and in-depth debate<br />
about credibility<br />
In order to further entrench CSR in the organisation and our<br />
day-to-day operations, we organised ten lunch meetings<br />
with staff at various <strong>Essent</strong> sites between 10 May and 25<br />
June 2007.<br />
During these lunches – where, obviously, responsible food<br />
choices were on offer – staff were invited to express their<br />
views on CSR. The most important conclusion drawn from<br />
these meetings was that we have to put our words into action<br />
within the company as well, and ensure that we get our own<br />
CSR house in order. Examples put forward included reducing<br />
car mileage, making our fleet of cars more environmentally<br />
friendly, double-sided printing, and offering fair trade coffee.<br />
Another idea that was raised was for staff to volunteer as<br />
energy conservation ambassadors and promote sustainability<br />
in their respective communities.<br />
The enthusiasm among our staff justified a number of<br />
follow-up actions. First of all, we analysed the results of the<br />
meetings and broadly communicated our findings throughout<br />
the organisation. We also decided to develop two programmes,<br />
more specifically: ‘Sustainability inside’<br />
(Binnengoed, covering CSR in our offices) and ‘<strong>Essent</strong><br />
carbon-neutral’ (<strong>Essent</strong> CO 2 -neutraal, aimed at our own<br />
energy consumption and mobility).<br />
sustainability, inside and out<br />
The Binnengoed programme, which is intended to get our<br />
CSR house in order, proposes a two-step approach.<br />
The first step was to implement a quick-win programme<br />
aimed at raising awareness and delivering relatively easyto-achieve<br />
results. September, October and November<br />
2007 were campaign months, each with their own individual<br />
theme. September was the month of the hallmarks.<br />
<strong>Essent</strong> introduced Max Havelaar fair trade coffee and FSC<br />
paper, among other things. October was recycling month,<br />
with special emphasis being placed on the reuse of com-<br />
12 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
Tamme Wierenga (<strong>Essent</strong> Manager Information Management),<br />
Marga Edens (<strong>Essent</strong> Manager CSR) and Olivier Vanden Eynde<br />
(General Manager of Close the Gap) present the 50,000 th<br />
computer to Desmond Tutu, the South African bishop.<br />
puters, mobile telephones, office furniture and suchlike.<br />
Vitality was the theme of the month in November. In a pilot<br />
carried out at a large <strong>Essent</strong> facility in Den Bosch, we gained<br />
experience with healthy foods and a company workout plan.<br />
The second step is more strategically oriented and consists<br />
of four stages. First of all, we will take stock of the current<br />
situation (which products and operations do we have), and<br />
explore the savings potential (both with regard to environmental<br />
and cost aspects). Next, we will look at the possibilities<br />
of replacing existing products with sustainable ones and,<br />
finally, we will decide what items qualify for recycling. The<br />
entire programme runs from 2007 to 2009 and is designed to<br />
deliver maximum environmental benefits in combination with<br />
cost savings.<br />
In 2007, aside from introducing fair trade coffee, we<br />
achieved several other notable results. We made a start with<br />
double-sided and black-and-white printing. Another highlight<br />
was our offer of used computers to Desmond Tutu, the<br />
South African bishop, in the autumn of 2007 as part of the<br />
Close the Gap project to tackle poverty by bridging the digital<br />
divide with developing countries.<br />
Looking ahead to 2008 we will work to make our catering<br />
and cleaning product groups more sustainable.<br />
CO 2 neutrality, a responsibility that comes<br />
with our position<br />
If, at <strong>Essent</strong>, we want to be recognised as leading the way in<br />
making our communities more sustainable, we will have to<br />
put our own affairs in order first. CO 2 reductions and carbon<br />
offsetting are key issues in terms of the environment and<br />
our reputation as a company. If we work hard to offset the<br />
carbon emissions caused by our car fleet and buildings, we<br />
can bring home our message of sustainability to our customers<br />
and raise their awareness. Our staff also expect us to set<br />
a good example. It is a matter of credibility.<br />
That is why we have launched two action plans. The first one<br />
is aimed at offsetting the carbon emissions caused by our car<br />
fleet, and the second at reducing energy consumption in our<br />
buildings.<br />
towards a CO 2 -neutral car fleet<br />
In 2007 the <strong>Essent</strong> car fleet (industrial vehicles, leased cars<br />
and charged business mileage clocked up in private cars)<br />
caused around 16,000 tonnes of CO 2 emissions in total. Our<br />
previously introduced - rather symbolic - policy of planting<br />
a tree for each newly leased company car illustrates that we<br />
are keeping our attention focused on the need for sustainability.<br />
It is now underpinned by a massive carbon-offsetting<br />
scheme involving our entire fleet of cars. In 2007 the decision<br />
13 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Retrospective and outlook › Retrospective
www.essent.eu<br />
was taken to offset our carbon emissions of 16,000 tonnes<br />
in full. This involved an amount of EUR 350,000 in renewable<br />
energy certificates.<br />
We will, of course, make every effort to reduce car mileage.<br />
We expect further incentives to use train services to reduce<br />
car mileage by 6.5%. Even greater savings would appear to<br />
be feasible by taking additional measures aimed at limiting<br />
business travel through behavioural changes and making<br />
facilities such as video-conferencing available on a larger<br />
scale. Plans are being developed to achieve this.<br />
In 2008 the cost of offsetting carbon emissions caused by<br />
the car fleet will be regarded as ordinary business expenses.<br />
With this, we have incorporated our CSR policy into our<br />
ordinary business activities.<br />
towards CO 2 -neutral business premises<br />
In making our office buildings more sustainable, we are<br />
using the same method as the one applied to the Binnengoed<br />
project. First of all, we take stock of the current situation<br />
at each of our sites (energy consumption, contracts, nature<br />
of the buildings, etc.), and identify the opportunities for<br />
energy conservation and limiting carbon emissions. Next,<br />
we look at where we can use renewable energy instead of<br />
conventional energy. Finally, we offset what carbon emissions<br />
remain.<br />
14 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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In the fourth quarter of 2007, we began implementing the<br />
first and second stages of the plan by introducing an energy<br />
management system. The system enables us to analyse energy<br />
consumption levels in our buildings and identify areas<br />
where savings can be achieved. We expect to be able to<br />
reduce our energy consumption by 10% to 20% and curb carbon<br />
emissions further through additional measures. Further<br />
details will probably be available in the first half of 2008.<br />
It could be argued that stage four of the plan is unnecessary.<br />
After all, if we take stage three of the plan seriously and<br />
use renewable energy across the company, there will be no<br />
CO 2 emissions left to be offset. However, the actual situation<br />
is more complex. Biogas is available only to a very limited<br />
extent, green gas is in itself a form of offsetting and generating<br />
capacity for green electricity in the Netherlands is not<br />
keeping pace with demand. Encouraging even more imports<br />
is not one of our objectives. It seems likely, therefore, that we<br />
will have to offset a residual level of CO 2 emissions.<br />
As with the Binnengoed programme, we aim to achieve<br />
maximum environmental benefits coupled with cost savings.<br />
This is not only good for our wallet, but also provides appealing<br />
examples for external campaigns. Clearly, customers will<br />
more readily invest in environmental care if the measures<br />
taken yield returns.<br />
what others think of us<br />
However hard we try to put in place a sound CSR policy,<br />
we cannot rule out the possibility of overlooking one or two<br />
things, or misinterpreting the expectations of others. That is<br />
why we regularly gauge the opinion of parties operating in<br />
the area of CSR to find out what they think of our policies.<br />
We have placed the dialogue with our stakeholders at the<br />
heart of these feedback efforts. In 2007 we chose to focus on<br />
four issues, i.e. palm oil, emissions reduction, energy conservation<br />
and human rights.<br />
The first step was to commission the Good Company research<br />
and consulting firm to send out questionnaires to<br />
five influential stakeholders: the World Wide Fund for Nature<br />
(WWF), the Dutch National Forest Service, two Dutch<br />
nature conservation and environmental protection groups<br />
(Natuurmonumenten and Natuur & Milieu), and Amnesty<br />
International. To ensure maximum objectivity, it was explained<br />
to the stakeholders that they were asked to give their<br />
opinion on the sustainability policies of power companies.<br />
They did not know that the questions were being asked on<br />
<strong>Essent</strong>’s behalf.<br />
The findings showed that the four environment-oriented<br />
stakeholders appreciated the greater openness on the part<br />
of the energy industry. They also saw encouraging sustainability<br />
initiatives in a number of companies.<br />
Otherwise, the stakeholders were mostly critical. They commented<br />
that energy companies should invest more of their<br />
substantial profits in innovation, sustainability and energy<br />
conservation, and certainly not in coal-fired power stations.<br />
Using palm oil as a biofuel was considered non-sustainable,<br />
and promoting green gas was referred to as window dressing.<br />
Moreover, they felt that energy companies should take<br />
responsibility for the entire energy chain and channel more<br />
efforts into small-scale power generation and energy conservation<br />
tips. Also, energy companies should go to greater<br />
lengths to fulfil their social role, for example with regard to<br />
payment arrears.<br />
Late in 2007, on the basis of these findings, we initiated a<br />
dialogue with a number of these stakeholders to share and<br />
explain our views, and to explore in what areas we might join<br />
forces in moving forward. More specifically, <strong>Essent</strong> and the<br />
Dutch National Forest Service will explore ways of expanding<br />
their current alliance through small-scale initiatives designed<br />
to bring sustainability closer to the public. As regards<br />
palm oil, we will use the findings of the Blok Committee,<br />
which considers the phased-in certification of palm oil to be<br />
a feasible option (see chapter 5).<br />
In the dialogue on human rights, Amnesty International<br />
urged power companies to look at issues such as working<br />
conditions on palm oil plantations, planting CO 2 offset forests<br />
in areas where people are forced out of their homes,<br />
and the production of biomass at the expense of food crops.<br />
We believe, however, that our Supplier Code of Conduct<br />
(see chapter 5), which imposes requirements on all of our<br />
suppliers, provides sufficient safeguards. We have, therefore,<br />
15 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Retrospective and outlook › Retrospective
www.essent.eu<br />
decided not to home in on the issue of human rights for the<br />
time being.<br />
The dialogue with stakeholders about CSR is not, of<br />
course, limited to NGOs. Regular customer surveys (households<br />
and corporate customers) and customer forums keep<br />
us apprised of their opinions. We also liaise with our shareholders;<br />
not only during regular meetings, but certainly also<br />
in connection with the Shareholders Energy Conservation<br />
Plan.<br />
It goes without saying that the views of our employees<br />
count heavily in our CSR policy. Our annual staff survey<br />
consistently features CSR aspects. And we are in constant<br />
dialogue with our staff, at the lunch meetings referred to<br />
earlier and during long-distance walks on the Pieterpad trail.<br />
walking our way to sustainability<br />
The Pieterpad trail, a legendary walking trail from Pieterburen<br />
in the northern province of Groningen to Sint Pietersberg,<br />
a hill near Maastricht in the south, more or less covers<br />
the company’s original area of operation. Because walking<br />
clears the mind and loosens the tongue, we organise walking<br />
trips for groups of employees along the Pieterpad trail (day<br />
walks) to encourage them to speak out on important issues.<br />
In 2007 the walks revolved around the theme of CSR.<br />
To many participants, CSR was initially a very broad and,<br />
hence, somewhat abstract notion. But as the walks went on,<br />
they gradually got to grips with it. It quickly turned out that<br />
there was great willingness to contribute to CSR, and that<br />
many staff underestimated their own potential where CSR<br />
was concerned. Frequently heard comments included:<br />
“I’d like to, but I’m sure my boss thinks it’s nonsense,” and,<br />
most often, “the company’ll have to foot some of the bill<br />
then.” However, our staff proved during these walks that<br />
their influence was greater than they had initially expected.<br />
It has led to several great projects and suggestions for<br />
improvement. On one of the walks, we were joined by Professor<br />
Arjo Klamer, Professor of Cultural Economics at Erasmus<br />
University Rotterdam, who put a philosophical angle on the<br />
relationship between CSR and behaviour. The upshot was<br />
that we perform best if we feel part of a group and are emotionally<br />
involved with issues.<br />
A visit, on one of the walks, to Ben & Jerry’s, a company<br />
known for its sustainability efforts, showed that <strong>Essent</strong> can<br />
be proud of the progress we are making.<br />
The overall conclusion drawn from the 18 walks in 2007<br />
was that we must, first and foremost, have faith in our own<br />
capabilities.<br />
Our walkers rolled up their sleeves and got down to some<br />
physical work as well, pitching in and making themselves<br />
useful as a group. In the early autumn of 2007, for example,<br />
they built a trail in the Goudplevier nature reserve in the<br />
Province of Drenthe, and in Maastricht the walkers successfully<br />
arranged for high-efficiency boilers to be fitted at the<br />
Toon Hermanshuis (a home for terminally ill cancer patients).<br />
Walkers also took on voluntary obligations. In 2008 one<br />
Five members of Impulse!<br />
an affiliate of<br />
Young Leaders for Nature<br />
group will fit out the Arboretum in Eenrum (in the northern<br />
Province of Groningen) with a solar power system. Another<br />
group will try to set up a small-scale hydropower system<br />
at a restaurant in Denekamp (in the Province of Overijssel).<br />
The walks also produced many useful tips for our in-house<br />
Binnengoed campaign.<br />
once learnt ...<br />
CSR will thrive only if it embraced by everyone at the company.<br />
Impulse!, the association of <strong>Essent</strong> Management Trainees,<br />
did so whole-heartedly. The young members of Impulse!<br />
joined the Young Leaders for Nature, which was founded<br />
in response to an open letter from the crème de la crème of<br />
the Dutch corporate sector to the newly to be formed Dutch<br />
Cabinet (in December 2006). The open letter was an initiative<br />
of Leaders for Nature and encouraged the Cabinet to pursue<br />
an active government policy on corporate sustainability.<br />
The Young Leaders for Nature subsequently sent an open<br />
letter of their own, saying that they themselves were willing<br />
to make a contribution to their companies’ CSR policy.<br />
The letter was presented to the CEOs of 23 large Dutch companies,<br />
including <strong>Essent</strong>, in November 2007. Early in January<br />
2008, as a follow-up, the Young Leaders for Nature staged<br />
a forum in Utrecht, where they engaged in a debate with<br />
members of the Board of their respective companies. Fifteen<br />
16 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
<strong>Essent</strong> members of Young Leaders for Nature took the<br />
opportunity to make four solid agreements with the<br />
Executive Board, represented by Rinse de Jong, and with<br />
CSR Manager Marga Edens.<br />
Under the first agreement, the <strong>Essent</strong> Young Leaders for<br />
Nature will help raise CSR awareness throughout the<br />
company (People). The second agreement involves the<br />
introduction of a CSR funnel that will help to translate ideas<br />
suggested by <strong>Essent</strong> staff into concrete decisions and<br />
actions (Planet). Under the third agreement, <strong>Essent</strong> will<br />
review its investments against CSR criteria as well as against<br />
profitability goals (Profit). The fourth agreement will see<br />
the <strong>Essent</strong> Young Leaders for Nature work towards bringing<br />
<strong>Essent</strong> at the forefront by having the car of the future<br />
power ed by green electricity (Power).<br />
These actions have led to the firm anchoring of CSR in our<br />
formal organisational structure and its integration into our<br />
standard planning & control cycle. CSR is no longer a<br />
maverick policy proposition. Instead, it has become part and<br />
parcel of our day-to-day ideas, actions and reporting<br />
practices.<br />
CSR is business as usual<br />
2007 was our first true CSR policy year, which is also<br />
evidenced by the fact that CSR has now become a permanent<br />
feature in our business plans. In the overall <strong>Essent</strong> Business<br />
Plan 2008 we have, for the first time, included a chapter on<br />
CSR policy and our business units, for their part, were invited<br />
to include a CSR chapter in their respective business plans,<br />
showing what policy and practical input they plan to con–<br />
tribute to our joint CSR policy.<br />
17 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Retrospective and outlook › Retrospective
1Retrospective<br />
www.essent.eu<br />
and outlook<br />
Outlook<br />
more challenges ahead<br />
Although we are very pleased that CSR has become a fully<br />
fledged part of <strong>Essent</strong> policies and the day-to-day activities<br />
of our staff, we cannot afford to rest on our laurels. The challenges<br />
– at local, national and global level – are increasing.<br />
Moreover, our ambitions in the area of CSR extend beyond<br />
what we have accomplished so far. There is still much to be<br />
achieved in 2008.<br />
spearhead CSR efforts. In practical terms, this strategy<br />
is reflected in the CSR Department’s plan of action:<br />
energy market<br />
■ 43% of customers will start to use green electricity<br />
(Groene Stroom)<br />
■ 35,000 customers will start to use green for gas<br />
(Groen voor Gas)<br />
strategy fine-tuning<br />
In 2008 the main aim of our CSR strategy will be to strengthen<br />
CSR as a guiding principle in our strategy, business<br />
policies and day-to-day operations, so as to ensure that<br />
<strong>Essent</strong> becomes a sustainable energy company.<br />
In all of this, we will continue to adhere to the nine strategic<br />
principles defined at the beginning of this chapter. The CSR<br />
Department’s role is to inspire, initiate and coordinate, and<br />
to cascade CSR throughout the organisation by:<br />
■ raising awareness and actively involving our staff and;<br />
■ encouraging the business units to develop commercial<br />
products and services in line with our CSR policy.<br />
sustainability<br />
■ encourage torrefaction* and prepare <strong>Essent</strong><br />
for the use of torrefied biomass<br />
■ set up new offset projects for green gas<br />
awareness<br />
■ launch a CSR campaign targeting our employees<br />
Key projects include improving the internal and external visibility<br />
of our CSR policy, gaining acceptance among different<br />
stakeholders, and launching internal and external projects to<br />
18 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong><br />
* see figure at page 36
placing the world centre-stage<br />
After the summer of 2008 we will launch a major in-house<br />
campaign. Our aim will be to encourage greater awareness<br />
among staff in terms of sustainability, and promote <strong>Essent</strong>’s<br />
newly defined core values. We will need to attribute meaning<br />
to these core values – Pro Active, Accountable, Cooperative<br />
and Delivering – in order for them to be put into practice.<br />
Our core values should guide us and set us on the right track<br />
in everything we do and what we believe in. If we are as<br />
committed to sustainability as we say we are, we must have<br />
the courage to ‘sustainabilise’ our core values as well. Only<br />
then can we expect to be able to fully appreciate the value of<br />
the sustainability pillars underpinning our strategy and will<br />
we be better equipped to act accordingly.<br />
The campaign we have in mind will place the world centrestage.<br />
The overriding question is what we are going to do<br />
to stop climate change. That is why we have named the<br />
staff campaign ‘How on Earth.’ It revolves around two main<br />
themes: energy consumption and mobility.<br />
We will start by sharing knowledge and then move on to<br />
changing people’s behaviour. Things are bound to get<br />
serious at times, but we have no doubt that the campaign will<br />
make for some enjoyable and festive activities as well. Let us<br />
move forward with fresh spirits and build a shared future.<br />
‘How on<br />
earth’<br />
19 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Retrospective and outlook › Outlook
2<br />
www.essent.eu<br />
Corporate governance<br />
of CSR<br />
A number of the about<br />
70 CSR ambassadors<br />
We regard CSR as business as usual, which is why we apply<br />
the same corporate governance practices as we do to <strong>Essent</strong><br />
in general. Our corporate governance policies are enshrined<br />
in legislation and the Dutch Corporate Governance Code;<br />
for details on our corporate governance, we refer to our<br />
financial annual report.<br />
Sound corporate governance is rooted in good business<br />
practices and good governance. At <strong>Essent</strong>, we take it one<br />
step further, claiming that good business practices are<br />
socially responsible business practices.<br />
And: good governance is socially responsible governance.<br />
These are our principles.<br />
Code of Conduct<br />
The <strong>Essent</strong> Code of Conduct, which gives guidelines for<br />
our daily actions, is based on our views of good governance<br />
and CSR.<br />
Our responsibilities:<br />
1 Our customers can always depend on us<br />
2 We provide optimum value growth for our shareholders<br />
3 Our employees can count on respect and trust<br />
4 We live up to our social responsibility<br />
Our approach:<br />
5 We operate with integrity<br />
6 We ensure a healthy and safe working environment<br />
7 We ensure that the company adheres to well-defined<br />
corporate governance practices<br />
8 We stand for free enterprise and fair competition<br />
9 We set the same standards for our business partners<br />
that we set for ourselves<br />
In our business dealings, we adhere to a set of CSR-related<br />
conditions of purchase, which we refer to as the Supplier<br />
Code of Conduct. With this Code, we seek to guarantee that<br />
our suppliers’ operations are socially responsible as well.<br />
whistleblowers’ arrangement<br />
The whistleblowers’ arrangement offers employees who<br />
suspect irregularities the opportunity to report their suspicions<br />
without this affecting their employment situation.<br />
Counsellors have been appointed to protect employees who<br />
have reported a suspected irregularity by not disclosing<br />
their identity and overseeing that they do not experience any<br />
adverse consequences in their employment situation.<br />
No reports under the whistleblowers’ arrangement were<br />
filed in 2007.<br />
20 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
new positioning, new core values<br />
In the autumn of 2007, after the merger talks with Nuon had<br />
failed, we considered our positioning in the market. One of<br />
our key findings was that we need to raise our profile in the<br />
market as an enterprise that is truly concerned with sustainability<br />
and innovation. This has shifted the <strong>Essent</strong> core values<br />
more towards our corporate social responsibility and the<br />
practical aspects that go with it.<br />
In order to allow ourselves to tackle the new challenges,<br />
we have fine-tuned the <strong>Essent</strong> core values to Pro Active,<br />
Accountable, Cooperative and Delivering. These core values<br />
form a daily source of inspiration for our staff and all our<br />
partners. How do we operate Well, this is how!<br />
anchoring CSR<br />
As indicated, we want to position <strong>Essent</strong> as a leading and<br />
sustainable energy company by using our CSR policy as<br />
a leverage. Obviously, it is the Executive Board that has a<br />
policy-defining role, but their efforts would be wasted if their<br />
policies were not broadly anchored in our operations. That is<br />
why two actions were taken.<br />
First of all, we formed a CSR Advisory Board early in 2007.<br />
This Board, on which business unit directors, heads of<br />
corporate services departments and specialists are seated,<br />
is chaired by the Chairman of the Executive Board.<br />
The Advisory Board assists the Executive Board by offering<br />
recommendations about CSR policies and policy execution.<br />
Key topics addressed by the Advisory Board in 2007 were the<br />
CSR controls that are in place, the dialogue with our stakeholders,<br />
the extent to which <strong>Essent</strong> wants to be involved in<br />
projects in developing countries and <strong>Essent</strong>’s position on the<br />
CO 2 emissions market.<br />
Secondly, we appointed CSR Ambassadors early in 2007.<br />
The some 70 Ambassadors, volunteers from all echelons of<br />
the organisation, are the vanguard of CSR within <strong>Essent</strong>.<br />
They are the first point of contact for CSR in the organisation.<br />
In addition, their job is to identify and inspire. All 70 Ambassadors<br />
meet four times per year to exchange information and<br />
make recommendations. They also serve as panel chairs for<br />
the Pieterpad walks. In the spring of 2007 they were closely<br />
involved in organising the CSR lunches.<br />
The result of these two actions is that CSR has already<br />
been pretty firmly anchored in our operations. CSR is starting<br />
to become our ‘green’ leitmotiv.<br />
CSR in the <strong>Essent</strong> Business Plan<br />
We have included a separate CSR chapter containing<br />
company-wide targets in our Business Plan 2008 – which<br />
was drafted in the autumn of 2007 – in order to allow CSR to<br />
take further root in our organisation. In addition, all business<br />
21 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Corporate governance of CSR
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units were asked to include CSR targets in their individual<br />
business plans for 2008. These were based on a conversion<br />
of the nine CSR policy spearheads into the activities of the<br />
separate business units.<br />
We will keep close track of the execution of the plan in<br />
2008 and fine-tune it where necessary.<br />
Thanks to its broad positioning within <strong>Essent</strong>, CSR is increasingly<br />
becoming a regular aspect of our business, including<br />
the planning & control cycle. It is becoming ‘business as<br />
usual’.<br />
CSR in the Corporate State of the Risk<br />
<strong>Essent</strong> prepares the Corporate State of the Risk a number of<br />
times per year. It is an aspect of our risk management policy<br />
that gives us an understanding of the key risks to which our<br />
business is exposed and the options that we have to mitigate<br />
them.<br />
All business units and corporate services departments assess<br />
their risk potential and the related implications, if any.<br />
This includes operational risks, occupational health and<br />
safety (HSE) risks, economic risks, risks due to changes in<br />
legislation and reputational risks.<br />
In line with the idea that CSR is an integral part of our ordinary<br />
activities, we started to introduce CSR aspects to this<br />
risk assessment in 2007. In doing so, we made allowance for<br />
elements in our operations where CSR plays a role and where<br />
risk exposures might exist. One of the conclusions was<br />
that the embedding of CSR in our ordinary activities helps<br />
to identify, understand and reduce potential risks. There is<br />
much to be gained from well-defined targets and putting<br />
in place internal process controls.<br />
international alliance<br />
Although it does not come under corporate governance,<br />
a step that ties <strong>Essent</strong> even closer to CSR is our membership<br />
of UN Global Compact, an international initiative that brings<br />
companies together with the United Nations, labour and civil<br />
society to support ten universal principles in the areas of<br />
human rights, labour, the environment and anti-corruption.<br />
Soon after it was established, we have entered in 2007 the<br />
Dutch Chapter of Global Compact. So far, <strong>Essent</strong> is the only<br />
Dutch energy distribution company to become a member of<br />
Global Compact.<br />
The CSR report for 2008 will be <strong>Essent</strong>’s first ‘Communication<br />
on Progress’ report, a CSR report in accordance with the<br />
Global Compact methodology.<br />
22 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
3Structure of the report<br />
www.essent.eu<br />
and accountability<br />
structure<br />
accountability<br />
The lay-out of this report reflects the progress <strong>Essent</strong> has This CSR <strong>Report</strong> was prepared in accordance with the<br />
made in anchoring CSR in the organisation. Whilst the report principles of the Global <strong>Report</strong>ing Initiative (GRI). We have<br />
for 2006 was principally a broad and in-depth overview modelled our report on the G3 Guideline for the definition<br />
of overall CSR aspects, this report for 2007 is much more of the key GRI indicators. We refer to our website for a list<br />
attuned to material issues and the resulting dilemmas. of indicators used and details on the application of the GRI<br />
In this report, we have maintained the approach based on Application Level Criteria. In defining the scope of this report,<br />
the four roles that characterise <strong>Essent</strong>’s position in society: we relied on the GRI Boundary Protocol – a reference document<br />
for establishing the boundaries of a social responsibility<br />
a business operator, a market player, an employer and a<br />
corporate citizen. We have foregrounded the most urgent report. For the purposes of describing our performance and<br />
dilemma that comes with each role.<br />
disclosing the required information, we reviewed the relevance<br />
of our operations, the degree of control exercised by<br />
the business operator<br />
<strong>Essent</strong> and the materiality of the information.<br />
tomorrow’s energy<br />
what do we do and what don’t we do<br />
scope<br />
Our report addresses the CSR activities of <strong>Essent</strong> N.V. in<br />
the market player<br />
2007. The fact that we are an energy company takes centrestage.<br />
For this reason, the activities of <strong>Essent</strong> Waste Man-<br />
measuring sustainability<br />
how sustainable is palm oil<br />
agement – a business unit specialising in waste processing<br />
– have only been included to a limited extent. We have not<br />
the employer<br />
included our minority interests (of 50% or less) in this report<br />
diversity in development<br />
either. Although we concentrate mainly on the Netherlands,<br />
where are those women<br />
we do partially report on our German associate swb AG,<br />
a 51% participation. We have also included disclosures on our<br />
the corporate citizen<br />
wind-related activities in Germany.<br />
regional involvement<br />
The summarised financial information relates to the <strong>Essent</strong><br />
sugar daddy or partner<br />
organisation as a whole, including associates and activities in<br />
the countries where we operate. Obviously, there are exceptions.<br />
Being an energy company, we report on energy. That<br />
In addition, this report addresses a number of remarkable<br />
trends and looks ahead to 2008 where this is relevant. is why we have taken account of the electricity production of<br />
Where the format is concerned, we have basically opted our associates, in proportion to our shareholdings. The same<br />
to publish two reports, a print and an online version. After goes for <strong>Essent</strong> Waste Management, which also generates<br />
all, the Internet allows us to elaborate on developments in energy from waste.<br />
our performance throughout the year and leaves more room We will also highlight our 50% interest in EPZ NV, operator<br />
for background information. We post all information about of the Borssele nuclear power station among other plants,<br />
<strong>Essent</strong>, our power stations, wind farms and activities on our because of its exceptional nature.<br />
website, including the related figures. These figures ultimately<br />
demonstrate our ambitions, the progress we make contains the most important – CO 2 – emissions data of all our<br />
Energy production causes emissions. Therefore, our report<br />
and the level of our success. This print report is a summary associates. Not included are the (limited) emissions caused<br />
of key issues. For more detailed information, please log on to by <strong>Essent</strong> Networks due to the transport of gas or the offset of<br />
www.essent.eu.<br />
resistor losses due to the transport of electricity. The emissions<br />
caused by waste incineration and waste storage by<br />
<strong>Essent</strong> Waste Management are not included either. Safety is<br />
24 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
a concern for everyone at <strong>Essent</strong>. Our safety performance,<br />
which is expressed in the DART rate, comprises all <strong>Essent</strong><br />
business units and swb AG. It does not include the financial<br />
minority interests where <strong>Essent</strong> has no control over the dayto-day<br />
operations.<br />
Our staff base is perhaps our most important source of<br />
energy. In addition to the number of people (in FTes) that<br />
<strong>Essent</strong> employs, we also look specifically at age composition,<br />
absenteeism, the ratio of male to female employees and a<br />
range of other issues. Our analyses pertain to our own workforce,<br />
but to temporary workers as well. Staff employed by<br />
swb AG in Germany, <strong>Essent</strong> Belgium en Energie:Direct (both<br />
of which are divisions of the business unit Service & Sales),<br />
the newly acquired Westland Energie Services, our minority<br />
interests and interns are not included in these analyses.<br />
data collection<br />
Our report describes the efforts that we put forth in 2007.<br />
Most of the information contained in this report deals with<br />
the way in which we have embedded CSR in our business<br />
and the dilemmas that we faced in the process. We hosted<br />
a range of consultative talks between all echelons of the<br />
organisation and with various stakeholders; open interviews<br />
give an impression of our stakeholders’ opinions on our approach<br />
to these dilemmas. And on policy-related matters, we<br />
consulted with our workforce, specialist corporate services<br />
staff, business unit directors and the Executive Board. Our<br />
findings from these consultations make up the more qualitative<br />
section of the report.<br />
We have also included figures and trends, as well as, in<br />
many instances, comparative data. The more quantitative<br />
information originates from standard sources and reporting<br />
systems. The summary of the financial information is based<br />
on our financial annual report, which is published separately.<br />
external validation<br />
It is of the essence that the information contained in this<br />
report is complete, accurate and transparent. That is why<br />
we have asked Ernst & Young Accountants to issue an<br />
Assurance <strong>Report</strong> on this report. It is currently being<br />
reviewed whether (parts of) the online report could also<br />
be certified.<br />
<br />
<br />
<br />
<br />
<br />
Choice of data inclusion for each business unit<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
1 Safety data relate to <strong>Essent</strong>’s own staff and contracted third parties.<br />
2 Energy generation by the <strong>Essent</strong> Group, carbon emissions, exclusive of emissions by <strong>Essent</strong> Networks and <strong>Essent</strong> Waste Management.<br />
Associates included proportionate to <strong>Essent</strong> share.<br />
3 Staff employed by associates are not included unless equity interest exceeds 50%.<br />
4 Socially relevant activities are attributable to a limited extent only to individual business units. Activities undertaken by swb AG are not included.<br />
5 Relates to CO 2<br />
caused by energy-generating emissions by associates whose interests are represented for <strong>Essent</strong> by the Business Development business unit.<br />
6 Relates to the wind energy activities in the Netherlands and Germany only.<br />
7 Includes the operations of <strong>Essent</strong> Belgium and Energie:Direct. Relates to the green electricity, Business green electricity and green for gas products.<br />
8 Included in total number of FTes employed by <strong>Essent</strong>. Not included in other staff data.<br />
25 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Structure of the report and accountability
www.essent.eu<br />
4<strong>Essent</strong> as a business operator<br />
TOMORROW’S<br />
energy<br />
each<br />
in continuous operation<br />
Power stations and wind farms appeal to our imagination.<br />
They are impressive structures and masterly examples of<br />
engineering skills. But they are also the source of power for<br />
society; the place where electricity originates, from where<br />
four-inch thick cables bring electricity to people’s homes.<br />
the place of Power<br />
The power to switch on lights, ignite engines, run computers;<br />
the power to keep things affordable, and the power to do so<br />
as sustainably as possible.<br />
In the Netherlands, <strong>Essent</strong> is at the vanguard of renewable<br />
energy generation. We intend to carefully build on this<br />
position. After all, our overall objective is to be a leading and<br />
sustainable energy company. This will involve hard work as<br />
it imposes great demands on the way we operate. We need<br />
to make existing power stations more sustainable. We must<br />
build new power stations using technology that places less<br />
of a burden on the climate. And we will have to achieve maximum<br />
yields from our wind farms, while, at the same time,<br />
guaranteeing the energy supply and keeping it affordable<br />
for our customers.<br />
power station is a one-off<br />
However impressive and complicated it may seem, electricity<br />
generation is basically a simple process. In fact, every power<br />
station or wind turbine operates like a bicycle dynamo, only<br />
it is bigger. A power station becomes special because of the<br />
fuels it uses and the environmental controls that are in place.<br />
At <strong>Essent</strong>, we operate three types of large power plants:<br />
conventional coal-fired and gas-fired stations, and highly<br />
efficient combined heat and power plants (CHPs).<br />
The Amer power station and Claus power station were<br />
designed as conventional plants, but we have since substantially<br />
improved their sustainability performance. The Amer<br />
power station near Geertruidenberg, for example, co-fires<br />
a considerable quantity of solid biomass (wood) with coal.<br />
Moreover, a substantial part of the residual heat is used to<br />
heat homes and businesses. The plant is also being fitted<br />
with a DeNOx system. This filters harmful nitrogen oxides<br />
(NOx) from flue gasses. The Amer power station has a power<br />
generation capacity of 1,240 MW and heat generation<br />
capacity of 600 MW. The Claus power station in Maasbracht<br />
is a gas-fired plant made suitable to co-fire bio-oils. Its maximum<br />
output is 1,280 MW.<br />
26 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
the thoroughbred of power stations<br />
CHP plants are a special type of power station. We own a<br />
number of CHP plants, the largest of which is in Moerdijk.<br />
Generating heat as well as power, CHP plants are gentle on<br />
the environment. They deliver high energy efficiency and CO 2<br />
emissions are low. Given the current state of the art, CHP<br />
plants are by far the most effective option for large-scale<br />
electricity generation. However, in order for a CHP plant to be<br />
cost-effective, gas prices must compare favourably to other<br />
fuels. And that has not always been the case over the past<br />
few years.<br />
Our current overall output from CHP plants is 1,560 MW.<br />
When it comes to CHP plants, <strong>Essent</strong> occupies the number<br />
one position in North-West Europe. Our knowledge of, and<br />
experience with, this technology will become crucial over the<br />
next few years as we face the difficult transition to renewable<br />
energy and further measures will be implemented in the way<br />
of energy conservation.<br />
every little helps<br />
Obviously, we also engage in small-scale power generation.<br />
Our dedicated biomass plant in Cuijk has a capacity of<br />
25 MW. The plant fires solid biomass in the shape of wood<br />
cuttings and wood pellets.<br />
Co-generation plants are important. They are, in fact, small<br />
combined heat and power stations. We are pleased to operate<br />
a large number of them because, like their big cousins,<br />
they have a very low impact on the environment. That is why<br />
we intend to considerably expand our presence in this market.<br />
Early in 2007 we took a major step in this direction by<br />
acquiring Westland Energie Services, which specialises in<br />
supplying energy to the glasshouse industry. Co-generation<br />
plants are a very attractive proposition in this market because<br />
greenhouses not only need heating and power (lighting),<br />
but also require CO 2 for their crops to grow. Between<br />
them, our co-generation plants put out 160 MW overall.<br />
Another development in this field is the micro-cogeneration<br />
plant, a central heating boiler that generates electricity as<br />
well as heat in homes. Micro-cogeneration plants are mostly<br />
still being piloted.<br />
Electricity is also generated at our waste incineration<br />
plant in Wijster and waste fermentation plant in Groningen.<br />
The joint capacity is 60 MW. The waste incineration plant of<br />
Afvalverbranding Zuid-Nederland (AZN) delivers high pressure<br />
steam to the Moerdijk CHP plant. After all, we would<br />
waste a valuable opportunity if we did not make the best<br />
possible use of the heat that is generated by incinerating<br />
household refuse.<br />
27 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a business operator › Tomorrow’s energy
www.essent.eu<br />
a little water and ...<br />
Flat as it is, the Netherlands does not offer too many possibilities<br />
for hydropower. <strong>Essent</strong> operates two small hydropower<br />
plants: an 11.5 MW plant on the river Meuse near Linne and<br />
a tiny one (100 kW) on the river Vecht near Gramsbergen.<br />
But our motto is: ‘take care of the pence…’. They also, of<br />
course, allow us to gain experience in this field.<br />
... a lot of wind<br />
In contrast, wind power is a major force in terms of our<br />
overall electricity output. In order to concentrate as much<br />
knowledge and experience as possible in one place, we<br />
have combined our Dutch and German wind power operations<br />
into a single entity, <strong>Essent</strong> Wind.<br />
In 2007 we successfully added 42 MW to our existing capacity.<br />
At the same time, we sold existing wind farms in Germany<br />
with a total capacity of just under 65 MW. We also demolished<br />
one of our two wind farms at Eemshaven to clear the<br />
way for a new one. The 40 small wind turbines put out a total<br />
capacity of 10 MW and will be replaced by larger, state-ofthe-art<br />
turbines. In total, we now put out nearly 424 MW in<br />
wind power in the Netherlands and Germany, a respectable<br />
amount, but slightly less than last year, so we need to ‘up the<br />
ante’. Over the next few years, we plan to add 250 MW<br />
in onshore projects in the Netherlands, and are counting<br />
on as much as 1,150 MW in Germany.<br />
As for offshore projects, we expect to achieve a capacity<br />
of 400 MW in Germany. One of the new projects involves<br />
replacing 134 wind turbines at Eemshaven by 52 newly<br />
built 3 MW turbines, nearly quadrupling our output there<br />
to 156 MW.<br />
In 2008 we expect to increase wind capacity by 70 MW,<br />
around 44 MW of which will be for own usage. The remaining<br />
part will be sold to others. That is how we can put our experience<br />
to use.<br />
wind power is not a fix-all<br />
Wind power may be important and successful, but it also<br />
has a downside. The more wind turbines are built, the more<br />
difficult they are to fit into the landscape. And, what is more,<br />
offshore wind farms are rather costly. In addition, there is the<br />
general problem of having to maintain near-equivalent backup<br />
capacity for each megawatt of wind power. After all, the<br />
wind does not always blow, but people always need electricity.<br />
Conversely, if during exceptionally stormy nights an electricity<br />
surplus arises in off-peak hours, combined heat and<br />
power stations might have to be shut down. And that comes<br />
at the expense of energy conservation and heat supply.<br />
biomass under fire<br />
It was for these reasons that we decided, quite a while ago,<br />
that we should not rely solely on wind power if we were<br />
serious in wanting to shift to renewable energy resources.<br />
We needed to develop at least one other form of sustainable<br />
energy generation. Something that had growth potential.<br />
With a view to making our operations more sustainable, we<br />
have therefore invested heavily in biomass as a fuel for our<br />
power stations.<br />
CO 2 emissions caused by energy generation <br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2007<br />
2006<br />
2005<br />
14,625<br />
5,320<br />
1,715<br />
589<br />
1,782<br />
5,218<br />
14,496<br />
5,495<br />
1,435<br />
525<br />
1,582<br />
5,458<br />
14,706<br />
5,915<br />
1,262<br />
648<br />
1,631<br />
5,250<br />
28 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
Solid biomass in the shape of wood chips and wood pellets<br />
is used as a fuel by a dedicated power station near Cuijk,<br />
and co-fired at the Amer power station near Geertruidenberg.<br />
Liquid biomass in the shape of bio-oils and fatty acids<br />
is co-fired at the Claus power station near Maasbracht.<br />
Unfortunately, after a number of highly successful years,<br />
in-house production of renewable energy dropped in 2007.<br />
The underlying causes are explained in greater detail in<br />
chapter 5.<br />
be organised first to look at whether or not the public believe<br />
nuclear power is an acceptable option. In the interim, we<br />
will continue to focus on technological and safety issues so<br />
as to prevent a knowledge lag.<br />
and then there is nuclear power<br />
<strong>Essent</strong> has a 50% interest in the nuclear power station at<br />
Borssele. The other shareholder is Delta Nutsbedrijven,<br />
a power company based in the Province of Zeeland. The<br />
station’s capacity is 485 MW.<br />
In 2006 <strong>Essent</strong> and Delta signed a covenant with the Dutch<br />
government. Under the covenant, the Dutch government<br />
allows the nuclear power plant, which technically still has<br />
quite a few years of useful life left in it, to continue to operate<br />
until 2033, thereby preventing capital losses. In exchange,<br />
<strong>Essent</strong> and Delta will each contribute EUR 125 million to<br />
enable the transition to a sustainable energy management<br />
in the Netherlands. The government will double this amount<br />
and donate EUR 250 million. <strong>Essent</strong> and Delta will put some<br />
of this amount towards a separate fund. For details, we refer<br />
to chapter 7.<br />
We regard nuclear energy as one of many intermediate solutions<br />
on the road towards a fully sustainable energy supply.<br />
We do feel, however, that a nation-wide public debate should<br />
CO 2 developments in key <strong>Essent</strong> power stations <br />
<br />
<br />
<br />
2007<br />
2006<br />
2005<br />
738<br />
521<br />
320<br />
760<br />
340<br />
330<br />
743<br />
355<br />
343<br />
29 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a business operator › Tomorrow’s energy
4<br />
www.essent.eu<br />
O 2
DILEMMA [ 4:1 ]<br />
But here is our<br />
dilemma as<br />
a business operator<br />
We need to weigh sustainability, affordability<br />
and availability as the priorities of our stakeholders<br />
differ. Can we nonetheless make<br />
a useful contribution to tomorrow’s energy<br />
Business operator/Power<br />
[ 30/31 ]
how green are we as an investor<br />
Power stations do not have eternal life. Upgrading considerably<br />
extends their useful lives. The Claus power station<br />
in Maasbracht and CHP plant in Moerdijk are examples in<br />
point. That said, power stations are like cars. However much<br />
you polish and tinker with them, there comes a time when<br />
their technology is definitely outdated and their fuel efficiency<br />
is no longer acceptable.<br />
Before that time comes, you need to have thought about<br />
replacement. And about adding capacity, because energy<br />
consumption is likely to continue to rise in the future. Clearly,<br />
we will go all out to conserve energy. If it were up to us, we<br />
would meet the Cabinet’s ambitious target of conserving 2%<br />
per year.<br />
Expectations are, however, that the demand for energy will<br />
increase by at least 1% per year over the next ten years. Add<br />
to that the fact that the Dutch power supply scores poorly<br />
on targets such as reliability, affordability and sustainability<br />
compared with other European countries, or so the Dutch<br />
Energy Council concluded in a recently published report on<br />
achieving a balanced fuel mix. The main cause lies in the excess<br />
number of gas-fired power stations (which is, of course,<br />
to do with the Dutch gas fields in Slochteren), with coal-fired<br />
stations adding to the problem. And we have little access to<br />
hydropower and nuclear energy.<br />
Reasons enough, then, to think long and hard about the<br />
question of how we intend to resolve this capacity issue<br />
when it arises.<br />
imports<br />
It does not seem feasible or advisable to us to substantially<br />
increase our imports. All countries on the North-West European<br />
energy market are effectively facing the same challenge.<br />
They all have old power stations that are scheduled<br />
for decommissioning shortly. Germany will be shutting down<br />
nuclear power plants as well. Norway has banned any further<br />
hydropower plants. And long-term contracts to secure international<br />
transmission capacity are prohibited under EU law.<br />
Imports are also a less attractive option because they create<br />
dependency, as well as hampering us in our efforts to conserve<br />
energy and improve sustainability. In order to ensure<br />
security and sustainability of the energy supply, we will have<br />
to expand production capacity in the Netherlands.<br />
renewable energy<br />
Solar power is too expensive and too uncertain for the time<br />
being to play a key role. A break-through in the development<br />
of affordable solar cells seems likely, but is not expected in<br />
the short term.<br />
And as for biomass, with which we already gained so much<br />
32 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
experience Sustainability along the supply chain becomes<br />
of ever increasing importance. The rising demand for biomass<br />
should not result in additional logging or impact the<br />
production of local foodstuffs. Biomass will therefore continue<br />
to be used mainly as a co-firing fuel. We will certainly<br />
continue to use it, although in a supporting role, rather than<br />
in a leading one.<br />
Wind power is an altogether different matter. We could<br />
conceivably use wind power to generate all of the capacity<br />
required. There is great potential in wind energy, especially<br />
at sea. But wind energy comes with a few drawbacks that we<br />
cannot resolve until we have the ability to store energy. One<br />
of the problems is the volatility of wind supplies. In times of<br />
high winds, we should be able to store electricity away for<br />
calm days. The other problem is wind energy output at night.<br />
Because we cannot store electricity at the moment, all of<br />
it must be conveyed directly to the power grid, also during<br />
windy nights. However, people use considerably less energy<br />
at night. As a result, wind power could well eliminate the<br />
demand for combined heat and power during such nights,<br />
despite the fact that CHP plants require steady, round-theclock<br />
operation to supply heat and as such conserve energy.<br />
This is also known as running on ‘base load’. Generating<br />
extra power for daytime uses is referred to as running on<br />
‘peak load’. This leaves us with two conclusions. The first<br />
one is that any further development of renewable energy<br />
would benefit greatly from an energy storage system. We<br />
will need to work hard to achieve this in the Netherlands.<br />
The second conclusion is that we will continue to need a mix<br />
of different types of energy production in the Netherlands<br />
for the time being. Channelling all efforts into renewable<br />
energy will push energy conservation and energy efficiency<br />
into the background. This might also come at the expense<br />
of combined heat and power plants and smaller-scale cogeneration<br />
plants. But in the long run, conserving energy is<br />
the most sustainable solution.<br />
need for energy storage<br />
At <strong>Essent</strong>, we devote many of our innovation efforts to developing<br />
an energy storage system. We are involved, for<br />
instance, in exploring the idea of constructing an energy<br />
storage island in the North Sea, a variation on civil engineer<br />
Lievense’s old plans for the IJsselmeer lake. In the Province<br />
of Limburg, in the south of the Netherlands, we are studying<br />
the possibility of storing energy in subterranean reservoirs<br />
(pumping up water using cheap electricity at night and<br />
letting it run down again – passing through several turbines<br />
– at the more expensive peak periods during the day). Still,<br />
it will be a while before we can put in place a reliable and affordable<br />
energy storage system.<br />
33 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a business operator › Tomorrow’s energy
need for base load in particular<br />
At <strong>Essent</strong>, our gas-fired output is relatively high. That should<br />
not come as a surprise. As a Dutch company, we were sitting<br />
right on top of the Dutch gas fields at the time.<br />
Gas-fired power stations are by far the best suited to meet<br />
peak demand during the day because they can be precisely<br />
calibrated to demand. They are like gas cookers. You turn<br />
up the heat a little as needed and bring it back to simmering<br />
point seconds later. However, research has shown that base<br />
load capacity, in particular, is what we need in the future,<br />
especially if we want to ensure a reliable and affordable<br />
power supply.<br />
It goes without saying that we will continue to pursue our<br />
successful combined heat and power policy. This is necessary<br />
to help achieve much-needed energy efficiency. But it<br />
will not be enough. Combined heat and power requires the<br />
simultaneous release of heat, which is not always possible.<br />
Moreover, gas prices substantially affect the feasibility of<br />
combined heat and power generation.<br />
hybrid power station<br />
That is where our plans come in to build a hybrid power<br />
station that uses biomass and pulverised coal, which is an<br />
excellent way of combining our knowledge of biomass and<br />
state-of-the-art coal technology. A hybrid power plant is<br />
designed particularly to provide a continuous power supply<br />
34<br />
<strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
and, hence, is a perfect solution to meeting base load demand.<br />
We are planning for an output of around 800 MW.<br />
Black coal is available in abundance and is extracted in<br />
politically stable areas so prices are fairly stable as well.<br />
Alternatively, we considered building a coal gasification<br />
plant, but this is now proving to be more expensive to build<br />
and less reliable than a pulverised coal-fired plant, while<br />
output and CO 2 emissions are more or less the same.<br />
The new plant will have an efficiency ratio of around 46%<br />
– compared with up to about 40% for existing coal-fired<br />
plants – reducing CO 2 emissions by around 20%. Because<br />
biomass will account for at least 30% of the fuel mix used by<br />
the plant, carbon emissions will be further reduced by that<br />
same percentage. Moreover, NOx, SO 2 and fine particles will<br />
be removed from flue gases.<br />
We intend to create the technical conditions necessary for<br />
preparing the plant for future capture and storage of CO 2<br />
emissions and conduct a study of available options. We will<br />
also investigate ways for even further increasing the share of<br />
biomass in the fuel mix.<br />
The new hybrid power plant will be located in Geertruidenberg,<br />
as part of the existing Amer-cluster. The site already<br />
has the infrastructure in place to process black coal and<br />
biomass. The transmission capacity needed to sell the electricity<br />
generated is also available. In addition, there is a district<br />
heating network (connected to homes and businesses in<br />
the wide vicinity), which will be able to absorb residual heat<br />
generated by the plant. This will further improve the plant’s<br />
efficiency.<br />
follow-up action<br />
Although we will initially focus on meeting base load demand<br />
as a first priority, we will certainly address the challenge of<br />
peak load demand in the future. This could be achieved, for<br />
instance, by developing a new gas-fired power station in<br />
Moerdijk. We will take all of these issues into consideration.<br />
The next step will be to see whether a new power station is<br />
a viable option. Because we are not the only company in the<br />
energy market that is planning to expand its production capacity,<br />
the situation has not become any easier. The number<br />
of power plant construction companies is limited and prices<br />
are rising sharply, mainly driven by rapid developments in<br />
China. This may have a knock-on effect on the affordability<br />
of the energy supply. This is also an issue which we will factor<br />
into our decision-making. Should we not then be thinking<br />
about nuclear energy after all Base load! Affordable, reliable<br />
and clean where emissions are concerned. Although the<br />
debate about nuclear energy is slowly regaining momentum<br />
in the Netherlands, it definitely still is a controversial issue.<br />
Environmental pressure groups regard nuclear power as an<br />
unsustainable source of energy and are drawing attention to<br />
safety issues such as the storage of nuclear waste and nonproliferation.<br />
At <strong>Essent</strong>, we do not outright dismiss nuclear<br />
energy. It might lead to a better balanced fuel mix. But it also<br />
requires substantial investments. That is why we believe<br />
political and public debates should be held first.<br />
When looking at the energy supply of the future, the challenges<br />
that lie ahead are huge. Therefore we and society at<br />
large should put in maximum effort to meet these challenges.<br />
35<br />
<strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a business operator › Tomorrow’s energy
Torrefaction and biomass<br />
Improvement potential for biomass deployment<br />
air<br />
fuel<br />
biomass<br />
drying<br />
drying ue gas<br />
Business operator/Power
Torrefaction<br />
Torrefaction is a thermal process<br />
value chain. The input of bio mass<br />
<br />
<br />
designed to increase the energy<br />
density of solid biomass, such as<br />
wood, waste and resi dual flows<br />
from the timber-processing and<br />
agricultural industries, and to<br />
reduce its chemical pollution.<br />
In its pro cessing – supply and<br />
incineration – in a power station,<br />
it compares best to coal. This<br />
makes torrefaction an important<br />
potential link in the biomass<br />
as a substitute fuel for coal can<br />
thus be increased sharply,<br />
allowing hybrid power stations<br />
to fire even more biomass.<br />
This results in further reductions<br />
in carbon emissions from hybrid<br />
power stations. It should come<br />
as no surprise, therefore,that<br />
<strong>Essent</strong> is actively investigating<br />
the practical feasibility<br />
of torrefaction.
Interviews<br />
<br />
Paymon<br />
Aliabadi<br />
director <strong>Essent</strong> Trading<br />
Genève<br />
Gerard<br />
Hirs<br />
retired Professor of Energy Technology<br />
University of Twente
Paymon Aliabadi<br />
<br />
“ESSENT IS MARKET LEADER IN DEVELOPING RENEWABLE FUELS, AND INVESTS IN TECHNOLOGY<br />
utilising these fuels. Trends on the energy markets affect each investment decision that we<br />
take. Unfortunately, we are currently seeing an accumulation of market distortions at regional,<br />
national and global level. These developments have an adverse effect on the opportunities that<br />
we have to increase our renewable energy production. Let’s just mention a few issues we<br />
encounter in developing a hybrid coal- and biomass-fired power station. Emissions and biofuels<br />
are especially important in making such an investment.<br />
THE CURRENT MARKET FOR CARBON EMISSIONS TRADING HAS FAILED IN A NUMBER OF AREAS<br />
since the introduction of the allocation system for emissions rights by the European Union.<br />
Based on this system, industrial sectors have been allocated a number of carbon emissions<br />
rights. If they emit more carbon dioxide than they have been allocated, they need to purchase<br />
additional rights on the market. I would prefer a system of auctioning off these rights instead of<br />
allocating them, because an auction does not work to the advantage of the traditional emitters<br />
of large quantities of CO 2 . This would truly create a market price for carbon emissions. Even if<br />
such a system can’t be introduced overnight on a global scale – due, for instance, to extension<br />
of the mechanisms resulting from the Kyoto Protocol – the European Union should nonetheless<br />
seek to implement it!<br />
IT GOES WITHOUT SAYING THAT THE COSTS OF CARBON EMISSIONS WILL IN<strong>CR</strong>EASINGLY BE<br />
incorporated into consumer energy pricing. Until now, no international consensus has been<br />
reached, however, about the extent of these costs. The second problem here is that our sector<br />
doesn’t have a clear view of the market after the Kyoto Protocol expires in 2012. Given the<br />
investment required for a hybrid power plant, we need to know how the costs of carbon emissions<br />
will develop, not only in the coming years, but also in the next few decades.<br />
SINCE THE USE OF BIOFUELS REQUIRES THE DEPLOYMENT OF DEVELOPING TECHNOLOGIES,<br />
start-up subsidies are vital. This also applies to other large renewable energy technologies,<br />
such as wind and solar power. All these applications offer economies of scale, thereby lowering<br />
costs, if only the technology is sufficiently broad-based. Until then, inconsistent subsidy<br />
policies of the different national governments form an impediment that is not easily overcome.<br />
In the US and Europe, local political interests or pressures from lobby groups seem to have<br />
triumphed over common ecologic and economic sense. The result is a patchwork of different<br />
subsidy regimes and legislation that stands in the way of free market forces. And that’s what’s<br />
disheartening investors.<br />
I WOULD REALLY LIKE TO SEE NATIONAL GOVERNMENTS COLLABORATE IN DEVELOPING A SUBSIDY<br />
system that is applied consistently and has specific regard for the long term. Emerging biofuel<br />
technologies are like young plants; they need care and a certain protection against the discipline<br />
of the international energy market. The enormous volatility we see in the price of conventional,<br />
fossil fuels can change a project from a successful undertaking to a reckless, loss-making<br />
activity overnight. As a trader, you can sort of control this market volatility, but it can be<br />
disastrous for long-term investments in renewable value chains. Subsidies should make allowance<br />
for this market volatility and have longer effective periods. At present, the lack of consistency<br />
in subsidy systems for biofuels and renewable technology forms the largest threat to<br />
private-sector investments. And that uncertainty also affects us when we take decisions about<br />
long-term investments that are supposed to benefit our shareholders and the environment.<br />
ESSENT IS FIRMLY COMMITTED TO SUSTAINABILITY. BUT WE CAN’T OFFER ECONOMICALLY<br />
responsible solutions under our own steam. We need to forge alliances with governments and<br />
address inconsistent legislation and subsidy policies. That will allow us to do so much more in<br />
the way of renewable energy. To start, these alliances are needed to rally support for investments<br />
in a hybrid power station.”
Gerard Hirs<br />
<br />
“WHEN A DECISION IS TAKEN TO BUILD A NEW POWER STATION, THE TYPE OF FUEL AND THE<br />
method of power generation are two major considerations. Coal has come in for a lot of public<br />
criticism of late, despite the fact that there are enough stocks to last for around 1,000 years.<br />
The fact is that coal is in plentiful supply, its price is stable and it requires only a small amount<br />
of energy to mine and transport. Coal has the added advantage of a fairly constant basis of<br />
comparison for energy-saving and reducing carbon emissions. In other words, you don’t have<br />
to work harder and harder at the business of mining coal. In that sense, coal is developing in<br />
the opposite direction to that taken by other fuels: coal-mining has gradually become easier,<br />
not harder, in the course of time.<br />
LOCATING NEW SOURCES OF OTHER FUELS, ON THE OTHER HAND, IS SOMETHING THAT REQUIRES<br />
more and more energy. The problem here is that new sources are proving more and more<br />
difficult to find. In the case of oil and natural gas, for example, the amount of energy absorbed<br />
by production and transport is on the rise. More and more energy is lost per unit of product<br />
during the journey from the source to the consumer. Dutch households, for example, will no<br />
longer get their gas from local gas fields in the future. Rather, supplies may well come in the<br />
form of liquefied gas transported from the Barents Sea or Qatar. Producing, compressing and<br />
transporting gas are all high-energy activities, resulting in up to 30% of output being lost<br />
before it gets here in the first place. Anyway, in the future, gas from the local gas fields will no<br />
longer come to the surface just like that; electricity consumption is rising. Even in the<br />
Schoonebeek oilfield in the Netherlands, 30% of the output is needed just to get the oil to the<br />
surface. The comparative figure for coal is less than 10%.<br />
In other words, all the savings you make by using a high-efficiency gas-fired central heating<br />
system and setting your thermostat at a lower temperature are immediately undone by the<br />
energy you need simply to produce the gas. As a result, producing gas and oil from new<br />
sources will save much less energy and make much less of a difference to CO 2 emissions than<br />
politicians and policy-makers are hoping. In fact, the difference between the environmental<br />
impact of oil and natural gas on the one hand and coal on the other, is only small. These are all<br />
factors that you’ve got to take into account when selecting a fuel for a new power station.<br />
BIOMASS IS A COMPLETELY DIFFERENT STORY. BIOMASS ABSORBS CO 2 BY A PROCESS OF PHOTOsynthesis,<br />
thus keeping it out of the atmosphere. Provided it remains under the ground for long<br />
enough, it can turn into coal of its own accord. In other words, natural gas, oil and coal are all<br />
part of a CO 2 cycle lasting many millions of years. When biomass degrades on the earth’s<br />
surface or is used as a fuel, the CO 2 stored inside it is immediately released. So allowing wood<br />
in a forest to rot away is a dreadful waste. Deliberately composting rotting wood is in fact even<br />
worse. It would be better to keep the biomass and hence ensure that the CO 2 stored in the<br />
biomass stays where it is.<br />
USING BIOMASS AS A SUBSTITUTE FOR FOSSIL FUELS MEANS, THEREFORE, THAT THE CO 2 STORED<br />
in the biomass is released back into the air. The use of biomass as a fuel is still very much in an<br />
embryonic stage. Gasification has not been successful to date, and power stations like the one<br />
in Cuijk that fire exclusively on biomass have only a very low energy efficiency, at around 20%.<br />
In fact, all you’re doing is setting off a sort of controlled forest fire! In that case, it’s better to<br />
store the biomass and use coal as a fuel, as it’s more efficient. The only way in which biomass<br />
can be used efficiently is by co-firing it in a large, modern coal-fired power station. This is<br />
twice as efficient as the process used in the power station in Cuijk. Although CO 2 is still<br />
released into the atmosphere, the good news is that the power station makes much better use<br />
of the energy value represented by the biomass. And this is why Amer 10 is such a good idea.<br />
PAYMON ALIABADI<br />
GERARD HIRS<br />
HOWEVER, FUEL IS NOT THE SOLE CONSIDERATION. THE GENERATION TECHNIQUE USED IS ALSO<br />
a big factor. We have now gained a great deal of experience with coal gasification, a technique<br />
that was first used in the 1990s. Although there were certain teething troubles, the method is<br />
now working well. The staff of <strong>Essent</strong> have played a big part in this success. I can imagine that<br />
another option alongside coal gasification would be combustion in modern coal-fired power<br />
stations. Although both methods would have to comply with environmental laws and regulations,<br />
I would expect coal gasification to be more efficient and also to do better from a compliance<br />
aspect. These are both points one has to weigh up, of course, against the cost of construction.<br />
However, a higher energy efficiency would theoretically justify a larger investment.”
JOHAN VAN DE GRONDEN<br />
RICHARD SCHMÖLZER<br />
<br />
“THE WORLD WIDE FUND FOR NATURE (WWF) STANDS FOR BIODIVERSITY AND VARIETY OF LIFE.<br />
Johan van de Gronden<br />
Biodiversity has come under tremendous pressure due to climate change. Although climate<br />
change is caused by human activity, the good news is that we can change our actions, for<br />
instance by reconsidering our behavioural patterns and using technology sensibly.<br />
OUR ALLIANCE WITH ESSENT IS ROOTED IN A NUMBER OF STRATEGIC TARGETS. WE AGREE<br />
that the average temperature should not rise by more than 2 degrees this century. We also<br />
subscribe to the ambitious European and Dutch climate goals, i.e. a 20% reduction in CO 2<br />
emissions in 2020. But obviously, we would like to see more. Here’s where friction comes in.<br />
Businesses should not let short-term gains prevail over what society needs to do to resolve<br />
the climate issue. WWF plays a role in that debate, trying to encourage authorities, citizens,<br />
businesses and shareholders to take balanced and sensible decisions together.<br />
THE ENERGY ISSUE IS CLOSELY INTERWOVEN WITH THE CLIMATE ISSUE. AND ALTHOUGH WWF<br />
doesn’t know about energy generation, we are experts in biodiversity. That’s why we need to<br />
find solutions together and develop an ambitious climate strategy. If we look at technology,<br />
we need a proper assessment framework. Unfortunately, we are still highly dependent on<br />
fossil fuels in the Netherlands. Just think: if we take emissions produced by an efficient<br />
gas-fired power station as the norm, it doesn’t really matter how you shape the energy<br />
supply of the future, as long as we stay below the norm and our carbon footprint becomes<br />
smaller.<br />
It would have to be investigated whether a hybrid power station meets this norm. But we<br />
can’t imagine <strong>Essent</strong> building a conventional coal-fired power station. That would knock the<br />
wind right out of the government’s green policy. And I don’t think this meshes with the<br />
responsibilities of <strong>Essent</strong> and its shareholders.<br />
BUILDING CONVENTIONAL COAL-FIRED POWER PLANTS IS A BIT LIKE PLAYING FINANCIAL<br />
russian roulette. The price of coal might be low now, but we also have to make assumptions<br />
about the future cost of carbon emissions. That’s why WWF is in favour of emissions trading.<br />
The real environmental damage can be assessed by attaching a price to CO 2 . This is perhaps<br />
more important than the price of coal. Looking at the cost of energy, you need to consider<br />
the big picture.<br />
WE ALSO HAVE TO WIDEN OUR HORIZONS BEYOND THE NETHERLANDS WHEN IT COMES TO<br />
thinking about the energy supply of the future. There are much bigger environmental gains<br />
to be achieved outside the Netherlands! Over the next few years, hundreds of simple coalfired<br />
power stations will be built in emerging economies such as China and India, without<br />
facilities for the capture and storage of CO 2 . So we have a double motive for critically<br />
reviewing the technical options. Our innovations also need to be of value outside this country,<br />
so we have to be able to export our knowledge. We have that responsibility as a rich<br />
nation. At the climate change conference in Bali, the adage was: don’t lay down the law for<br />
other countries, but help them find solutions.<br />
THE STORAGE OF CARBON EMISSIONS IS ONE SUCH SOLUTION. OF COURSE THERE ARE MANY<br />
questions surrounding the capture and storage of CO 2 ; we have to critically look at the<br />
availability of this technology, its degree of sustainability, safety issues and costs. I feel that<br />
the right know-how for the technical feasibility is available in the Netherlands. But a single<br />
enterprise can’t be expected to deal with this alone. It requires consultations between businesses,<br />
the government and societal organisations, such as WWF. It goes without saying<br />
that WWF does not set the rules or choose a technology, but we do need to engage in<br />
debate about how to achieve the climate goals.<br />
ULTIMATELY, CO 2 STORAGE IS A TRANSITION TECHNOLOGY ON THE ROAD TO A TRULY<br />
sustainable energy supply. Unfortunately, the one perfect solution has not presented itself<br />
yet, so that we need to continue to experiment with technologies. We should keep from<br />
being dogmatic and not outright dismiss any technical options. It doesn’t matter how we<br />
achieve a reduction in carbon emissions, whether through co-firing biomass in a hybrid<br />
power station, through heat regeneration or storage of CO 2 , as long as we achieve that goal.<br />
In my opinion, wind, biomass and solar energy are ultimately the only truly sustainable<br />
energy sources.”
Richard Schmölzer<br />
“AT OUR FELLOW SUBSIDIARY KOLLO SILICON CARBIDE IN DELFZIJL, WE MANUFACTURE SILICON<br />
carbide (SiC), a material with a high breakdown strength that is used in particulate filters,<br />
abradants and incinerators. Silicon carbide is formed by heating a mixture of sand and coke<br />
to more than 1,700 degrees Celsius. This process is extremely energy-consuming; we’re in the <br />
Top 20 of bulk consumers. The increase in energy cost would have got us into trouble in 2006<br />
if we hadn’t changed our working methods. Because we can’t survive using peak-price<br />
electricity during the day, we now start the reaction process during cheaper off-peak hours.<br />
At the end of 2007 Kollo Energie signed a suitable bespoke contract with <strong>Essent</strong> for this purpose:<br />
up to and including 2018 we will be supplied with three million MWh worth of electricity.<br />
At Kollo, we’re more than happy with this.<br />
WE’RE TALKING ABOUT CONVENTIONAL ELECTRICITY. OF COURSE WE WOULD PREFER GREEN<br />
electricity, although we’re already the cleanest and most energy-efficient silicon carbide plant<br />
in the world. We’re aware that our large-scale use adds to greenhouse gas emissions, but<br />
green electricity is simply too costly for us at this time. It’s one to two euros per MWh, and<br />
our competitors are located in countries such as South Africa, Ukraine and China. I hope and<br />
expect that we’ll be able to start using green electricity after all within five years’ time.<br />
IN MY OPINION, ESSENT COULD BE EVEN MORE ACTIVE IN PIONEERING SUSTAINABILITY<br />
initiatives. True, <strong>Essent</strong> already offers consumers green electricity for the price of conventional<br />
power and that’s a good thing, but what a true statement it would be if they were to switch all<br />
their customers to green electricity as a standard – although I don’t know whether enough<br />
sustainably produced electricity is available to do that.<br />
I FEEL THAT THE PLANS FOR A NEW COAL-FIRED POWER PLANT DON’T MESH WITH SUSTAIN -<br />
ability ambitions. Opting for coal is opting for money. I understand the dilemma facing energy<br />
companies, but they have to ask themselves what’s more important: sustainability or affordability<br />
Personally, I prefer to see a wind farm on the horizon rather than smog from carbon<br />
emissions. What’s more, affordability is a relative notion: instead of complaining, as a business,<br />
that energy costs have gone up, you could try to reduce your energy consumption or<br />
change your production process. And that’s exactly what the Kollo Group has done.<br />
I DON’T THINK THAT AFFORDABILITY SHOULD PREVAIL OVER SUSTAINABILITY. WE CAN’T SELL<br />
that to future generations. We will have to find a mix where we utilise natural sources of<br />
energy such as the sun, water, wind and biomass to their full potential, even though renewable<br />
energy is currently more expensive per MWh than coal-generated electricity. Nuclear energy<br />
is also a cheap and carbon-neutral alternative, but it has negative connotations in this country.<br />
Be that as it may, I would prefer a nuclear power plant in this country, under Dutch control,<br />
to one in a country with some sort of dubious regime.<br />
ULTIMATELY, WE CAN’T ESCAPE HAVING TO EMBRACE SUSTAINABILITY. I SEE GREAT POTENTIAL<br />
in the cradle-to-cradle principle where all material outputs and inputs are seen as technical<br />
or biological nutrients (waste = food). We should take the same approach to energy. Customer<br />
and supplier should both accept responsibility. This is quite a challenge for the energy sector:<br />
do they have to wait for the demand or create it themselves No one wants to pay more – nor<br />
do we. I believe that <strong>Essent</strong> – as the largest producer of green electricity in the Netherlands –<br />
should take the country by the hand. And we will follow where they lead us.”
Johan<br />
van de Gronden<br />
general director of WNF, the Dutch chapter of WWF<br />
Zeist<br />
Richard<br />
Schmölzer<br />
managing director Kollo Energie B.V.<br />
Appingedam
<strong>Essent</strong> as a market player<br />
www.essent.eu<br />
<br />
<br />
profits: do they make you rich or green<br />
Energy companies have a duty to offer consumers a reliable<br />
and affordable supply of energy. At the same time, they must<br />
also operate in a sustainable manner. Not doing so means<br />
not taking your social responsibility seriously enough.<br />
These objectives are all valid enough, but are they also<br />
compatible with each other The answer is: yes, they most<br />
definitely are! The fact is that a good energy company is a<br />
profitable energy company. Making a profit allows it to offer<br />
its customers a reliable, affordable and sustainable supply<br />
of energy. Profits are good news for everyone, including<br />
our (public-sector) shareholders, who receive half of these<br />
profits in the form of dividend each year. In short, a business<br />
needs to make a profit in order to achieve its aims.<br />
But does this mean scrutinising every step you take in terms<br />
of its effect on corporate profits Yes, actually, it does. The<br />
point is that a company should not take action that does<br />
not help it to make a profit. That’s why it’s so important for a<br />
business to develop a good nose for activities that are intrinsically<br />
profitable. Here at <strong>Essent</strong>, this is an aspect to which<br />
we devote a great deal of attention. Indeed, we have already<br />
made a number of vital discoveries in this connection. One of<br />
these is that satisfied customers are good for profits. Another<br />
is that dedicated staff are also good for profits. Clearly, you<br />
do not make much money from dissatisfied customers who<br />
take their custom elsewhere, or from unmotivated staff with<br />
a rulebook mentality. In other words, two basic conditions<br />
for making a healthy profit are the presence of satisfied<br />
customers and staff who are committed to your cause.<br />
The problem is that no two people are the same: different<br />
people have different desires, and this applies just as much<br />
to our own customers and staff as it does to people in general.<br />
Some people set great store by reliability, whereas others<br />
regard affordability as the most important consideration. Yet<br />
others cite sustainability as the main factor in the equation.<br />
And there is an ever-expanding group of people who reckon<br />
we should do equally well on all three aspects.<br />
Which brings us back to where we started. In order to earn<br />
enough income to provide our customers with a reliable,<br />
affordable and sustainable supply of energy, we need to do<br />
our very best in all these various areas. That is how it works<br />
when you are a market player. In fact, it is pretty simple when<br />
you think about it.<br />
So do reliable, affordable and sustainable automatically go<br />
hand in hand with each other<br />
No, not necessarily. It is something you need to work on.<br />
In some cases, you need a bit of help to get you there.<br />
38 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
HOW GREEN ARE WE<br />
green electricity<br />
We are the people who invented green electricity (Groene<br />
Stroom) over ten years ago. This we did in collaboration with<br />
the World Wide Fund for Nature (WWF). Green electricity is<br />
the name given to electricity generated from natural sources<br />
such as wind, water, the sun and clean biomass. Green electricity<br />
is CO 2 -neutral, which means that it does not contribute<br />
to climate change. Consumers do not pay any extra for our<br />
green electricity.<br />
At the end of 2007, we had 872,000 consumers of green<br />
electricity on our books, representing an impressive 43% of<br />
all our electricity consumers. The number of green electricity<br />
users remained stable in 2007 compared with 2006.<br />
Our Groen Zakelijk electricity is green electricity for businesses<br />
that are serious about their social responsibility. We<br />
had registered 55,000 business green electricity users by the<br />
end of 2007.<br />
Right from the outset, our guiding principle has been that<br />
we should produce as much green electricity as possible in<br />
our home country. The problem is that imports do very little<br />
to reduce CO 2 emissions, given that they rarely lead to any<br />
extra production of sustainable electricity in the countries<br />
of origin. We can help to build a sustainable future only by<br />
effectively reducing our consumption of fossil fuels.<br />
We guarantee that green electricity is produced from fully<br />
renewable energy sources, i.e. wind, water, landfill gas and<br />
clean biomass. The latter is taken to mean wood cuttings<br />
from forests and municipal green spaces, untreated wood<br />
residues from the timber processing industry, and palm oil.<br />
In other words, green electricity does not include power<br />
generated from relatively dirty products, such as kitchen and<br />
garden waste and sewage sludge. As a further consideration,<br />
we do not sell more green electricity than we can produce<br />
ourselves or purchase from other sources. This is an aspect<br />
that we watch very closely: after all, we want to be sure that<br />
we can obtain the necessary Guarantees of Origin in relation<br />
to the green electricity we sell to our customers.<br />
In November 2007, the Roundtable on Sustainable Palm Oil<br />
(RSPO) adopted a set of criteria for the sustainable production<br />
of palm oil. These criteria are now being used as the<br />
basis for a system of certification. At the end of 2007, we decided<br />
to use only 100% certified palm oil residues as biomass<br />
for the production of renewable energy.<br />
green for gas<br />
Green for gas (Groen voor Gas) is the name of the environmentally<br />
friendly alternative to natural gas that we devised in<br />
collaboration with the World Wide Fund for Nature (WWF).<br />
Using their own gas consumption figures, we can compute<br />
for each of our customers exactly how many kilos of CO 2 they<br />
emit into the atmosphere through their chimney. For a small<br />
fee, we can help the customer in question to fully offset his<br />
or her CO 2 emissions. This they can do by planting trees, for<br />
example, as trees convert carbon dioxide into oxygen. The<br />
trees are planted in plantations with the Forest Stewardship<br />
Council (FSC) stamp of approval.<br />
Green electricity contracts<br />
31-12-2007<br />
31-12-2006<br />
872,004<br />
881,253<br />
Business green electricity contracts<br />
31-12-2007<br />
31-12-2006<br />
55,100<br />
53,292<br />
39 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a market player › Weighting sustainability
www.essent.eu<br />
Another way of offsetting CO 2 emissions is by investing in<br />
more efficient and renewable power-generation technology,<br />
such as a new wind farm in New Zealand.<br />
All these projects comply with UN guidelines and the<br />
WWF’s Gold Standard. Every year, an independent auditor<br />
checks whether consumers’ aggregate CO 2 emissions have<br />
been fully offset.<br />
Green for gas is proving a popular product, and the number<br />
of users rose by 9,600 in 2007 to 25,000. Early in 2007, we<br />
launched business green for gas especially for the business<br />
market.<br />
Double Green<br />
Double Green (DubbelGroen) is the logical result of teaming<br />
up green electricity with green for gas. It is a way of offering<br />
our customers an opportunity to keep all their energy consumption<br />
CO 2 -neutral.<br />
feed-in tariffs for consumers<br />
Some of our customers are themselves pioneers – those<br />
who use solar panels to produce their own renewable power<br />
providing a case in point. It is with these people in mind that<br />
we devised a special feed-in tariff, in the knowledge that<br />
there are times when they produce more electricity than they<br />
actually need. The surplus is returned to the power grid, and<br />
we pay them a fee for this. This is a good way of encouraging<br />
small-scale use of sustainable power generation.<br />
energy conservation<br />
Energy conservation is another priority, alongside sustainable<br />
energy production. After all, the less energy you use<br />
in the first place, the less you need to replace by energy<br />
produced from renewable sources. After all, let’s get real:<br />
it is not exactly going to be easy to meet the government’s<br />
target of ensuring that 20% of all the energy consumed in<br />
the Netherlands is produced from renewable sources within<br />
the next 12 years, especially if the general trend is for people<br />
to use more and more power. A recent report published by<br />
the Energy Council (on the fuel mix) again also stresses the<br />
urgent need for energy conservation.<br />
In order to encourage our customers to save energy, we<br />
have devised a special Energy Conservation Plan for private<br />
consumers and an Energy Conservation Service for corporate<br />
clients. The idea behind the Energy Conservation Plan is<br />
that it should act as a big incentive for customers to reduce<br />
their energy consumption. It is not just about saving the environment;<br />
it is also about saving money. Remember: affordability<br />
is one of our objectives.<br />
We help our customers find ways of being economical with<br />
energy. The first step involves finding out exactly how much<br />
energy they use. Once the figures are available, we then<br />
make a series of suggestions for conserving energy. Where<br />
necessary, we remove certain obstacles preventing consumers<br />
from investing in energy-saving techniques, and we<br />
supply handy tools that they can use to monitor their energy<br />
Green for gas contracts<br />
31-12-2007<br />
31-12-2006<br />
24,944<br />
15,345<br />
40 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
consumption once they have implemented our recommendations.<br />
In other words, the <strong>Essent</strong> Energy Conservation Plan is<br />
good news both for the environment and for our customers’<br />
wallets.<br />
The Energy Conservation Service works in a similar way, but<br />
is targeted at corporate customers.<br />
In 2007, we mounted a number of campaigns in the consumer<br />
and small-firms markets highlighting the importance of<br />
conserving energy. One resounding success was the ‘socket<br />
module’, which shows just how much energy various household<br />
appliances use when they are left on stand-by.<br />
together with partners<br />
Like the WWF, the Dutch National Forest Service is a key<br />
partner of ours. They are also very useful people to work<br />
with: after all, it is all very well talking about biomass, but it<br />
has to be available in the first place. In partnership with the<br />
Dutch National Forest Service, we are pioneering the use of<br />
wood cuttings and residues as a sustainable fuel. The Dutch<br />
National Forest Service wishes to promote the use of Dutch<br />
wood as a renewable fuel. We worked together in designing<br />
an itinerant exhibition called ‘Fascinating Forests’, which<br />
shows the whole production chain from tree to green electricity,<br />
highlighting the environmental benefits.<br />
and what is the government up to in the meantime<br />
The government announced at the end of 2005 that it was<br />
planning to review the MEP grant scheme (set up under the<br />
Electricity Production Environmental Quality Act). It was<br />
clear from the announcement that grants awarded for biomass<br />
projects would be subjected to particularly close scrutiny.<br />
In the summer of 2006, the government subsequently<br />
decided to reduce the value of certain grants. There were big<br />
cuts in the government grants formerly paid for the co-firing<br />
of vegetable oil and non-wood agricultural residues. As a<br />
result, new projects using this type of biofuel are no longer<br />
viable (as we have already reported elsewhere in this report).<br />
This is a shame, as the decision has put the lid on a promising<br />
new development that was still in an embryonic stage<br />
and on which a great deal of further research still needed to<br />
be performed. Moreover, we have been trying for some time<br />
to draw public attention to the value of agricultural residues<br />
as a fuel. We believe that the government should in fact be<br />
stimulating their use as a biofuel, particularly as they come<br />
with very few drawbacks worth mentioning. After all, we are<br />
talking about genuine waste products that are not grown for<br />
their own sake and which do not therefore displace other,<br />
more important crops. This is a completely different situation<br />
from that applying to the production of corn for use as biodiesel,<br />
as this takes up large tracts of land previously given<br />
over to potatoes, wheat or rice, and may even pose a threat to<br />
supplies of animal feed.<br />
The fact is that agricultural residues complement rather<br />
than compete with food production. Coffee husks are a good<br />
example: if they are not used as a biofuel, they’re simply<br />
thrown away. This is a tremendous shame.<br />
Obviously, we were able to continue work on other projects<br />
that remained eligible for MEP grants. However, with no<br />
sign of the plans for a new grant scheme for encouraging<br />
investment in renewable energy production materialising<br />
in the near future, research into new sustainable biomass<br />
flows came to a halt. We are now expecting the Minister of<br />
Economic Affairs to present new plans during the first few<br />
months of 2008. In the meantime, the energy companies and<br />
other parties involved in the use of biomass have continued<br />
to press hard for the adoption of sustainability criteria<br />
(such as the criteria for the production of sustainable palm<br />
oil, which were ratified by the Roundtable on Sustainable<br />
Palm Oil in November 2007).<br />
decline in output of green electricity<br />
We were hit hard by the decision to end the MEP grant<br />
scheme. Grants are needed in order to identify and test new<br />
forms of biomass, to enable researchers to discover cleaner<br />
or alternative technologies, and also to support sustainable<br />
electricity production. The ending of the grant scheme<br />
accounted for half the decline in the production of green<br />
electricity in 2007. In fact, the decline was so marked that<br />
we were actually compelled to import green electricity in<br />
order to meet our customers’ needs. And as we have already<br />
41 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
explained, imported green electricity does little to further the<br />
cause of sustainable power generation.<br />
The other half of the decline stemmed from our decision<br />
(pending the results of the study performed by the Blok<br />
Committee) not to co-fire palm oil in the Claus power station.<br />
This is a point on which we will be elaborating later on in this<br />
chapter. Against this background, it is clear that the development<br />
of sustainable energy production requires consistency<br />
in government policy, i.e. government policies on sustainable<br />
energy production need to remain stable for a number of<br />
years.<br />
Businesses will be reluctant to invest if policies and grant<br />
schemes change every few years.<br />
sustainable energy production: what and how much<br />
We produce sustainable energy from a variety of sources.<br />
The bulk of the output (alongside wind farm production)<br />
comes from our power stations, which are fired by various<br />
forms of biomass.<br />
The Amer power station, for example, co-fired no less than<br />
half a million tonnes of biomass in 2007, producing around<br />
935 GWh of green electricity in the process. This is enough<br />
to meet the energy needs of over 265,000 households. The<br />
greater part of the biomass used by the Amer power station<br />
consisted of wood pellets (made from compressed cuttings)<br />
and sawdust.<br />
Of the solid biomass, i.e. all the mentioned forms of biomass<br />
apart from bio-oil, 48% is Green Gold Standard Label-certified<br />
(see figure on page 48).<br />
tireless search<br />
We are constantly on the lookout for ways and means of<br />
boosting the efficiency of the biomass we use. For example,<br />
technological research has shown that we can raise the<br />
calorific value of biomass by subjecting it to thermal preprocessing<br />
(a process known as torrefaction). This means<br />
greater efficiency and hence more green electricity.<br />
Another aspect of the use of biomass is the doubts that have<br />
been expressed in recent times about the security of future<br />
supplies. We are likely to see a surge in demand from around<br />
the world, whereas supplies are likely to remain broadly<br />
stable. In other words, there are limits to the future growth<br />
in biomass use. It is against this background that we are<br />
continuing our tireless search for new renewable fuels. The<br />
need to place our energy production and consumption on<br />
a sustainable footing represents a huge challenge. At the<br />
same time, the amount of time and resources available to us<br />
for quickly locating large sources of sustainable energy are<br />
relatively limited. We clearly need to investigate every possible<br />
avenue and to be resourceful and innovative. We need to<br />
try out every available option, and retain only those that are<br />
genuinely viable. One of the possible sources of energy we<br />
are currently looking at, for example, is algae. It is all still very<br />
much in the exploratory stage, but looks as though it could<br />
be an attractive option.<br />
coffee, anyone<br />
Another option, and one that is now in a more advanced<br />
stage, is the use of coffee husks as a fuel. Husks are the<br />
in GWh 2007 2006 2005<br />
Sustainable energy generation by the <strong>Essent</strong> Group<br />
Wind energy 753 696 672<br />
Hydropower 34 33 29<br />
Solar power 0.01 0.05 0.05<br />
Landfill gas and biogas 48 50 65<br />
Stand-alone clean biomass 158 162 174<br />
Fossil replaced by clean biomass 1,135 2,476 2,525<br />
Of which<br />
Solid biomass 1,069 946 1,236<br />
Liquid biomass 66 1,530 1,290<br />
Other biomass (e.g. waste incineration) 386 341 285<br />
Total 2,514 3,757 3,750<br />
Please note: Associates included proportionate to <strong>Essent</strong> share<br />
42 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
<strong>Essent</strong> biomass portfolio <br />
<br />
<br />
<br />
<br />
<br />
<br />
2007<br />
2006<br />
1,432,132<br />
68,440<br />
37,051<br />
260,404<br />
1,065,180<br />
1,057<br />
2,601,491<br />
1,496,040<br />
60,227<br />
172,144<br />
750,680<br />
112,400<br />
outer shells of coffee beans, and are a waste product of<br />
coffee production. They offer great potential as a means of<br />
replacing fossil fuels in power stations. There is no downside<br />
to this particular biomass flow: no trees need to be felled to<br />
produce them, the husks are produced in a responsible<br />
manner and do not form part of the food chain. In other<br />
words, they are biological waste pure and simple, but with<br />
a high calorific value. Working in partnership with a development<br />
organisation called Solidaridad, we have now started<br />
trials with the use of coffee husks as biomass. We buy the<br />
husks from Brazilian farmers, who are paid a fair price for<br />
them, based on the Fair Trade principles. Following an intensive<br />
period of preparations in 2007, the first shipload of coffee<br />
husks arrived in the Netherlands early in 2008. The husks<br />
will be used in the Amer power station as a co-firing fuel in<br />
the production of sustainable energy. Exactly how great a<br />
proportion of the fuel intake they will be able to account for<br />
should become clear during the course of 2008.<br />
responsibility for the entire supply chain<br />
CSR is all about accountability, about reporting on everything<br />
we do and do not do, on all our products and services,<br />
from the first to the last step. In other words, CSR covers<br />
the entire supply chain. We cannot afford to bury our head<br />
in the sand. By implication, we must be ready to account<br />
to our customers, our staff, our shareholders, as well as to<br />
interest groups and government organisations, at any time.<br />
We must be ready to report on origins, environmental impact,<br />
affordability, reliability, safety and the potential side-effects<br />
of our products and services.<br />
Because we are serious about our responsibility, we expect<br />
our suppliers to meet high standards in turn. It is with good<br />
reason that one of the provisions of our Code of Conduct<br />
states that we expect our business partners to meet the same<br />
standards we set for ourselves. The criteria our suppliers are<br />
expected to meet are set out in detail in our Supplier Code<br />
of Conduct. The main ingredients of this code are compliance<br />
with laws, regulations and human rights, environmental<br />
protection, integrity and transparency. This responsibility<br />
for the entire supply chain applies across the board to all our<br />
activities in relation to sustainability.<br />
Our Supplier Code of Conduct (SCoC) has now become a<br />
standard feature of all contracts with suppliers. We are planning<br />
to publish a revised version of the code in 2008, which<br />
will be aligned even more closely with our corporate policies.<br />
The new version will include additional provisions on the<br />
reduction of CO 2 emissions and energy conservation measures.<br />
It will also include a compliance provision, under which<br />
we will be entitled to check whether suppliers are indeed<br />
operating in accordance with the code.<br />
43 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a market player › Weighting sustainability
5<br />
www.essent.eu
DILEMMA [ 5:1 ]<br />
CSR means resolving<br />
dilemmas<br />
Given our responsibility for the entire<br />
supply chain, what is our view, as a market<br />
player, about the use of palm oil as biomass<br />
In essence, it’s all about striking a balance<br />
between financial and environmental<br />
considerations.<br />
Market player/Prot<br />
[ 44/45 ]
www.essent.eu<br />
palm oil: a special case<br />
When we first started using biomass – mainly wood residues<br />
at first – for producing green electricity at the end of the<br />
previous century, we immediately designed a track-andtrace<br />
system, not just to provide guarantees about the origins<br />
of the biomass, but also to enable us to set specific sustainability<br />
requirements. It was this system that formed the basis<br />
for our Green Gold Standard Label.<br />
The public response was enthusiastic. The new technology<br />
appealed to the popular imagination, and the dedicated<br />
biomass power station in Cuijk was hailed as a model of good<br />
future practice.<br />
The mood swung, however, when we started using palm oil<br />
in the Claus power station to generate green electricity.<br />
Palm oil was an excellent biofuel that was sold relatively<br />
cheaply on the world market. We believed it would help us in<br />
our mission to deliver green electricity for the price of conventional<br />
power. In some quarters, however, concern was<br />
expressed at the use of vegetable oil as a biofuel for cars and<br />
power stations. Some commentators were against the use of<br />
edible biomass, such as peanut, soybean and palm oil, in energy<br />
production. In their view, such oils were part of the food<br />
chain and should be used exclusively for eradicating famine<br />
among the world’s poor. Other observers felt that the critical<br />
question was where palm oil would cause the most lasting<br />
damage: to society, nature or the environment Among the<br />
topics debated in this connection were the felling of primeval<br />
forests, the appropriation of vast tracts of land for palm-tree<br />
plantations, the planting of trees in peat bogs, child labour<br />
and the low wages paid to labourers.<br />
We felt that these were valid arguments. Clearly, the biomass<br />
imported by Western countries must be produced in<br />
a sustainable manner. Whether it is used for the production<br />
of drugs, shampoo, food, animal feed, chemicals or fuel, its<br />
production may on no account be at the expense of people,<br />
flora and fauna, and the environment in its country of origin.<br />
Unilever already understood the problem. For many years<br />
now, it has been importing large quantities of oils and fats<br />
from a variety of countries. Together with the WWF, Unilever<br />
therefore launched a forum known as the Roundtable on<br />
Sustainable Palm Oil (RSPO) a few years ago. We joined the<br />
Roundtable when we started using large quantities of palm<br />
oil as biomass. We should point out that, in all cases, we still<br />
prefer using waste products such as husks, shells, pulp residues,<br />
skins, sawdust, wood cuttings and so on. These are all<br />
waste products from existing agricultural production chains.<br />
Apart from being cheaper, they do not compete with highervalue<br />
chains such as the food production chain.<br />
At the end of 2006, we stopped buying palm oil products<br />
for co-firing in the Claus power station. There were two immediate<br />
reasons for taking this decision: first, it was difficult<br />
to find evidence to bear out the claim that palm-oil production<br />
was indeed sustainable. Second, the chances of the<br />
Roundtable on Sustainable Palm Oil reaching a successful<br />
46 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
conclusion were beginning to look increasingly remote.<br />
At the same time, we were loath to abandon palm oil entirely.<br />
After all, the opportunities for moving further down the<br />
road towards a sustainable energy supply are pretty few and<br />
far between, so there is every reason for closely investigating<br />
any opportunities that present themselves. We therefore<br />
asked an external committee chaired by Professor Blok of<br />
Utrecht University to resolve the deadlock by advising us on<br />
the best course of action to take.<br />
Professor Blok’s Committee presented its findings in June<br />
2007. The Committee advised us not to abandon palm oil as<br />
a fuel, as we were one of those who were in an ideal position<br />
to press for the adoption of certification procedures for<br />
sustainable palm oil. The Committee believed that a full certification<br />
system could be put in place within five years. During<br />
the intervening period, <strong>Essent</strong> could gradually start buying<br />
larger and larger quantities of sustainable palm oil and palmoil<br />
derivatives. The Committee suggested that we should buy<br />
certified palm oil in increasingly large supplies, starting with<br />
a minimum percentage of 20% in 2008 and gradually raising<br />
this by 20% each year, enabling us to reach 100% in 2012.<br />
We recently resolved to go one step further, however. We<br />
have decided that, during the transition to 100% certification,<br />
we will not be making use of uncertified palm oil. We will only<br />
buy fully certified palm-oil products.<br />
The findings of the Blok Committee pushed the debate on<br />
palm oil in a new direction. Suddenly, things started moving<br />
quickly, and the RSPO adopted a set of certification<br />
criteria in November 2007. Various bodies are now working<br />
on a worldwide certification and inspection system, and we<br />
expect that the first RSPO-based certificates will be issued<br />
during the course of 2008.<br />
As a result, although we will not be co-firing any palm oil<br />
in the Claus power plant for the time being, it is possible that<br />
we may be able gradually to start buying RSPO-certified<br />
palm-oil products in the autumn of 2008.<br />
Palm oil is only the first form of liquid biomass flow for<br />
which a certification system is now being designed. Similar<br />
systems of sustainability certification have yet to be devised<br />
for other oils, such as soybean oil, rapeseed oil, sunflower oil,<br />
as well as other energy sources such as sugar cane and corn.<br />
We are working hard in partnership with various other companies<br />
to change this situation, and intend to open up our<br />
Green Gold Standard Label to other suppliers in the future.<br />
In addition, we have joined forces with other energy companies<br />
and oil companies to devise a system of certification<br />
of various other biomass flows. This is no easy task: whilst<br />
we would much prefer to see the adoption of an international<br />
standard, for the present there are not even any European<br />
standards, let alone globally accepted guidelines. Recognising<br />
the value of sustainable biomass, the Dutch government<br />
is supporting us in this process.<br />
As a result of the controversy surrounding the use of palm<br />
oil (and also the ending of palm-oil grants, as we have<br />
already mentioned elsewhere in this report), we were not<br />
able to produce as much green electricity in 2007 as we were<br />
in the previous year. We decided to import green electricity<br />
to make up for the deficit and hence meet market demand.<br />
However, this is not an option we like using, as imports do<br />
very little to ‘green’ electricity production. A huge amount<br />
still needs to be done if we are to produce 20% of our power<br />
from sustainable sources in 12 years’ time. We will need to<br />
investigate and test a large number of new technologies,<br />
assessing not just their energy efficiency, but also their technical<br />
feasibility, their sustainability and their affordability.<br />
But energy production has also got to be financially viable.<br />
We need to earn a profit so that we can operate on a sustainable<br />
footing. After all, if part of your body is moving towards<br />
sustainability, the rest of your body has to move in the same<br />
direction, too.<br />
47 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a market player › Weighting sustainability
Green Gold Standard Label<br />
Monitoring sustainability in the value chain of agricultural/forestry products<br />
Source<br />
Agriculture/forestry<br />
transport<br />
Biomass producer<br />
Processing<br />
transport<br />
Certicates<br />
Sustainable source and production<br />
checklist(s)<br />
For overall shipment/lot: all checklists for<br />
transport<br />
sustainable source and production approved<br />
as Green Gold Standard Label.<br />
Storage<br />
Port of loading<br />
Cargo vessel<br />
[yes]<br />
Storage in country of origin<br />
Loading onto cargo vessel<br />
Seacrossing<br />
Tracking & tracing<br />
Sustainable transport checklist<br />
Was the contracted cargo shipped and<br />
received in good and clean order<br />
[yes]<br />
Are the samples of corresponding chemical<br />
composition<br />
[yes]<br />
Market player/Prot
In 2002 <strong>Essent</strong> designed the<br />
Green Gold Standard Label,<br />
a method to guarantee the<br />
sustainable origins of solid<br />
biomass – such as wood, waste<br />
and residual flows from the timber-processing<br />
and agricultural<br />
industries. With this, <strong>Essent</strong><br />
wants to prevent the biomass<br />
that is required for the generation<br />
of green electricity from<br />
contributing to the destruction<br />
of forests or damaging the<br />
living environment. 48% of the<br />
biomass used by <strong>Essent</strong> in 2007<br />
was certified. The Green Gold<br />
Standard Label is comparable to<br />
other sustainability certificates<br />
such as the Forest Stewardship<br />
Council (FSC) quality mark.<br />
In order to raise the label’s<br />
profile among other users of<br />
biomass, even more enterprises<br />
will be invited to use it.<br />
<br />
Unloading in the Netherlands<br />
<br />
Transfer to power station<br />
<br />
Green Gold Standard Label-certificate<br />
awarded<br />
[yes]<br />
<br />
<br />
Generation of green electricity<br />
Use of green electricity
Interviews<br />
<br />
Johan<br />
Maris<br />
managing director of Control Union Certifications<br />
Zwolle<br />
Helma<br />
Kip<br />
Sustainable Energy Manager at <strong>Essent</strong><br />
Arnhem
Johan Maris<br />
<br />
“CONTROL UNION IS A DUTCH CERTIFICATION FIRM, WHICH HAS RISEN TO PROMINENCE WITH<br />
certification of organic farming. We are currently more focused on product certification,<br />
including that of palm oil, which is why we are involved in the Roundtable on Sustainable Palm<br />
Oil (RSPO). This is a set of principles and criteria for sustainable palm oil production adopted<br />
by producers, distributors and users of palm oil. We are one of the certifying agencies assessing<br />
whether the members of the Round Table comply with the principles and criteria. Now that<br />
the first assessments are underway, we can expect the first sustainable palm oil shortly.<br />
OBVIOUSLY, CERTIFICATION IS AN IMPORTANT TOOL TO FIND OUT WHETHER A PRODUCT IS TRULY<br />
sustainably produced. And the energy sector plays a distinct role in this respect. The carbon<br />
balance is a key factor in corroborating the sustainability claim of biofuels. Do the use of the<br />
land and the production method, for instance, not create more carbon emissions than are<br />
saved by firing biomass instead of coal An example: the use of peat land for palm oil plantations<br />
did not initially play a role. But it is precisely the use of this land that produces more<br />
carbon emissions than are saved. Now, the type of soil has become a criterion in sustainability<br />
certification. Such questions are entirely irrelevant to other users of palm oil, such as the food<br />
industry. We have the energy sector to thank for contributing to the scope of the sustainability<br />
criteria.<br />
MANY CERTIFICATION PROGRAMMES ARE PRODUCT-ORIENTED AND DO NOT FOCUS SPECIFICALLY<br />
on sustainability throughout the chain. Local farmers look at their fields and not at the application<br />
of their product; how can I earn the best living using my land Sustainability is less of<br />
an issue for them. There are a lot of middlemen and many potential applications before a<br />
product reaches the end user. Their product can be used as a biofuel, but is just as easily<br />
applied in cosmetics or in the food industry. That’s why you can’t just say that demand for<br />
biofuel pushes out food production. By certifying the entire chain you gain an understanding<br />
of where products come from, who produces them and which middlemen do what.<br />
IT WAS INEVITABLE THAT QUESTIONS WOULD ARISE ABOUT THE SUSTAINABILITY OF PALM OIL.<br />
The world is a global village, so we know all about working methods in countries such as<br />
Indonesia or Malaysia. If you cause damage to the environment by what you buy, you need to<br />
change your buying habits. And you will be held accountable for what you do. This is a<br />
responsibility that businesses will have to accept; they can manipulate producers by laying<br />
down criteria for suppliers, thereby influencing sustainability throughout the chain. Businesses<br />
are often better placed than governments to do that, so they have to accept this<br />
responsibility. The same question involving sustainability also came into play with respect to<br />
solid biomass such as wood. Thanks to the Green Gold label, we now know what’s sustainable<br />
and what’s not. <strong>Essent</strong> pioneered this quality label. Without <strong>Essent</strong>, certification procedures<br />
for biofuels in the Netherlands would have been far less developed than they are now.<br />
I’M PLEASED THAT ESSENT IS WILLING TO FURTHER EXPLORE THE ISSUE OF SUSTAINABILITY.<br />
The report published by the Blok Committee also lists a number of actions that go beyond the<br />
RSPO criteria. In my opinion, <strong>Essent</strong> gives off an excellent signal by having decided of its own<br />
accord to source 100% sustainably produced palm oil only from now on. But we have to<br />
remember that no producer can satisfy this requirement at the present time. And there is great<br />
demand for palm oil. In other words, you have to ask yourself whether you can rally the support<br />
of the producers by demanding that palm oil should be 100% sustainable. Sustainable<br />
production methods are not implemented overnight and require collaboration. It might be<br />
more effective to gradually move towards sustainable production than to demand that all palm<br />
oil be 100% sustainably produced from now on. This excludes parties that are still in the startup<br />
phase. After all, producers need to be given the opportunity to comply with the new<br />
requirements!”
Helma Kip<br />
<br />
“ESSENT WAS ONE OF THE FIRST ENERGY COMPANIES TO START USING BIOMASS ON A LARGER<br />
scale. We began to use it in the nineties. And we were quick to evaluate whether its origins<br />
also satisfied our sustainability requirements. In doing so, we not only assessed the quality of<br />
the biofuel, but we also, and more particularly, addressed the question of whether its cultivation,<br />
extraction and transport were deserving of the label ‘sustainable’. With this in mind,<br />
we launched the <strong>Essent</strong> Green Gold Standard Label in 2002. This label is highly suitable for<br />
traceable solid biomass such as wood residues. The system allows us to trace this biomass<br />
throughout the value chain: from its source to the power station. An independent inspectorate<br />
monitors this process; this is how we know, on an ongoing basis, that our biomass is truly<br />
sustainable and from ethical origins.<br />
OUR BIOMASS CONSISTS PRIMARILY OF RESIDUAL MATTER, SUCH AS WOOD CUTTINGS, SAWDUST<br />
and residual matter from agricultural production. A telling example is a recently started pilot<br />
with coffee husks, a residual product from coffee cultivation. We will supply our first green<br />
electricity from coffee husks in 2008. The use of residual matter reduces the burden on other<br />
applications, but whether you use biomass to produce electricity, food, medicines or cosmetics,<br />
you always need to ask yourself whether the biomass you import and use does not have an<br />
adverse impact on the sustainability situation elsewhere. And in this context, sustainability not<br />
only involves ecological assurances such as protecting primeval forests, but also respecting<br />
human rights, preventing child labour and creating favourable social circumstances.<br />
IN 2006, THESE ISSUES CAME RUSHING TO THE SURFACE WHERE PALM OIL WAS CONCERNED.<br />
And now we see that biofuels are increasingly being scrutinised. We ceased our electricity<br />
production from palm oil products when we were called to account for this sustainability issue<br />
and felt we couldn’t come up with a satisfactory answer, despite the fact that we mostly used<br />
residual products of the oil palm (fatty acids). Obviously, we’re not the only company using<br />
palm oil and we already contacted other users at an early stage in hopes of finding a quick<br />
answer to the question of how sustainable the use of palm oil products actually is.<br />
The Roundtable on Sustainable Palm Oil (RSPO) is a forum where large users of vegetable<br />
fats, such as Unilever, come together to discuss this issue. <strong>Essent</strong> is a member of the RSPO<br />
as well. Unfortunately, the sustainability of palm oil proved not as easy to demonstrate as we<br />
had hoped. As an energy company, we have to be able to guarantee, however, that the carbon<br />
reductions we claim to achieve are not being cancelled out elsewhere in the chain, e.g. due<br />
to logging or cultivation of peatlands.<br />
TO EXPEDITE A SOLUTION, WE DECIDED TO HAVE A SURVEY OF OUR OWN CONDUCTED IN 2007,<br />
reviewing the question of whether palm oil could be certified. Although this proved to be<br />
possible, it will be some time before certification is realistically feasible.<br />
At the end of 2007, we decided to use only 100% sustainable palm oil products for generating<br />
electricity. Since such certified palm oil is not available at present as producers have yet to<br />
adjust to the different sustainability criteria, we’re currently no longer sourcing any palm oil<br />
products for our sustainable electricity production. I expect the first sustainable palm oil to<br />
become available at the end of 2008.<br />
IN THE INTERIM, WE’RE WORKING HARD, IN TANDEM WITH OTHER ENERGY AND TRADING<br />
companies, to allow the application of sustainability criteria to other biomass flows as well.”<br />
JOHAN MARIS<br />
HELMA KIP
particularly to those companies that are interested in making the transition to a sustain -<br />
able energy supply. They’ve got to make sure, after all, that the change is permanent.<br />
Biofuels like palm oil have vital roles to play in this process. The main reason for using<br />
biofuels is their ability to reduce greenhouse gas emissions. However, this does not of<br />
course justify any damage they cause to the environment or the appropriation of land that<br />
would otherwise be used for food production. These are factors that any company using<br />
palm oil for energy production purposes needs to take into account. The same applies,<br />
incidentally, to other users of palm oil, even though these may not immediately spring to<br />
mind – such as manufacturers of shampoo, cosmetics or food fats. They, too, have a<br />
KORNELIS BLOK<br />
NICO ROOZEN<br />
Kornelis Blok<br />
“ANY COMPANY THAT USES BIOMASS HAS A SOCIAL RESPONSIBILITY. THIS APPLIES<br />
responsibility to ensure that their raw materials have been produced in a sustainable<br />
manner.<br />
WHILST COMPANIES THEMSELVES ARE PRIMARILY RESPONSIBLE FOR THE MATERIALS THEY<br />
use, the government does of course have a role to play, too. The government, after all, can<br />
do things that firms can’t. For example, the damage caused to food supplies, the felling of<br />
forests and poor working conditions are all important issues in relation to palm oil. This is<br />
not a matter of checking whether individual suppliers are good employers or whether a new<br />
plantation of young trees is planted after a forest has been felled. No, these are issues<br />
that need to be addressed at a regional – or even global – level. A regional or global system<br />
for monitoring biofuels, for example, could track the impact of palm oil production on the<br />
environment and food supplies. Clearly, this is beyond the reach of an individual company.<br />
The government has a role to play here, both as a coordinator and in reining in those companies<br />
that do not wish to submit themselves to voluntary monitoring.<br />
THE DUTCH GOVERNMENT HAS TRADITIONALLY PLAYED A PRO-ACTIVE ROLE IN SETTING UP<br />
certification systems for sustainability. The Cramer Committee, for example, has done a<br />
tremendous amount of good work in this connection. However, it’s important to harmonise<br />
systems with other countries, and not to make things too complicated. We need to prevent a<br />
situation from arising in which ten different certification systems are in operation in Europe.<br />
Europe already has a whole raft of grant schemes, but sustainability criteria for biomass do<br />
not play a part in these. They have been incorporated, however, in the new grant scheme<br />
recently adopted in the Netherlands. Grant schemes should not be designed in such a way<br />
as to preclude the use of biofuels. Assuming that there is a broad set of sustainability criteria<br />
and a good certification system, and that biofuels can offer a high energy efficiency per<br />
hectare, there’s every reason for taking a long, hard look at them. Palm oil is just such a<br />
fuel. Apart from coming with a good environmental record, it can also satisfy sustainability<br />
criteria applying to the entire production chain.<br />
WHILST WE RECOGNISE THE TREMENDOUS VALUE OF THE ROUNDTABLE ON SUSTAINABLE<br />
Palm Oil (RSPO) as a system for guaranteeing the sustainability of palm oil, our own report<br />
goes a step further in its recommendations. The fact is that you need to take account of the<br />
CO 2 balance and the impact of palm oil on food production. You’ve also got to guarantee<br />
that any rise in the demand for palm oil will not lead to a further loss of tropical rainforest<br />
for the purpose of planting new plantations. Clearly, it is not easy to keep track of this<br />
aspect. It’s important to build up close contacts with trading partners. Producers can also<br />
raise their output by making use of land that’s lying fallow or by boosting the output of<br />
existing plantations. These two options still have a huge amount of mileage in them, which<br />
is why we have advised <strong>Essent</strong> to look closely at them.<br />
ESSENT’S DECISION TO SWITCH IMMEDIATELY TO SUSTAINABLY PRODUCED PALM OIL IS<br />
entirely understandable, in the light both of the company’s social responsibility and of the<br />
controversy that has surrounded the use of palm oil. Having said that, it would have been<br />
entirely reasonable for <strong>Essent</strong> to switch gradually to sustainably produced palm oil. After<br />
all, for the present only a very small amount of palm oil has actually been certified as having<br />
been sustainably produced. With hindsight, <strong>Essent</strong> should perhaps have acted more<br />
quickly, learning from past experience with the certification of solid biomass such as wood.<br />
There’s only one option if there are doubts about the sustainability of biofuel in the value<br />
chain, and that’s certification. Although <strong>Essent</strong> is now pioneering the certification of palm<br />
oil and leading the way in terms of the demands it requires suppliers to meet, it must remain<br />
on the alert whenever new fuels appear on the market.”
Nico Roozen<br />
<br />
“IF A FIRM CLAIMS TO BE ACTING IN A SOCIALLY RESPONSIBLE WAY IN RELATION TO THE<br />
sustainability of a particular product, for example, it must be able to substantiate this claim<br />
to the satisfaction of society at large. In other words, there has got to be a set of impartial<br />
standards, resulting in a clearly defined code of conduct. The next step is transparency<br />
throughout the production chain, so that an independent third party can assess sustainability<br />
at all points of the chain.<br />
A code of conduct may be described as impartial if it is the result of a process of dialogue with<br />
all the stakeholders, i.e. producers, customers, lobby groups and, where appropriate, government<br />
bodies.<br />
SOME FIRMS MAY NEED TO ACT AS PIONEERS, AS ESSENT DID WHEN IT INTRODUCED THE<br />
<strong>Essent</strong> Green Gold Standard (EGGS) for solid biomass. The problem was that no system of<br />
certification was in operation when <strong>Essent</strong> decided to start using solid biomass. The company<br />
then took a calculated risk by formulating a standard of its own. That’s what pioneering is all<br />
about. Whilst we welcome this move, <strong>Essent</strong> must be willing to open up its standard to others<br />
and also to contemplate the possibility of the standard being subsumed in a new national or<br />
international code. It’s gratifying to see that this is indeed the attitude taken by <strong>Essent</strong>. It<br />
would be great to see the EGGS being incorporated into a generally accepted set of standards<br />
in a few years’ time.<br />
THE ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) IS A GOOD EXAMPLE OF THE WAY<br />
in which a certification system could come about. <strong>Essent</strong> is an active member of the RSPO,<br />
together with other palm oil users and products, as well as NGOs.<br />
IT’S ABSOLUTELY VITAL THAT THE VARIOUS STAKEHOLDERS TAKE EACH OTHER SERIOUSLY<br />
and show understanding for each other’s views. Companies should not regard sustainability<br />
simply as a form of window-dressing, whilst lobby groups must in turn recognise that<br />
compliance with a code of conduct has got to be commercially viable. After all, any company’s<br />
primary aim is to make a profit and hence safeguard its own future. Although this is something<br />
we respect, we do believe at the same time that the word ‘profit’ has more than just a<br />
financial meaning. We prefer to use the term ‘social profit’, as it allows us to take account of<br />
the actual social and ecological cost. In other words, the aim of certification should be to<br />
match the maximum social profit with the minimum system cost.<br />
THE PARTNERSHIP BETWEEN OUR TWO ORGANISATIONS, ESSENT AND SOLIDARIDAD, HAS BEEN<br />
highly constructive. This applies, for example, to <strong>Essent</strong>’s decision to use coffee husks<br />
imported from Brazil: we worked together in formulating the relevant standards and Solidaridad<br />
paved the way for <strong>Essent</strong> to purchase the husks it needs in a way that will also give local<br />
producers a fair price for their produce.”
Kornelis<br />
Blok<br />
chairman of the Blok Committee and<br />
Professor of Science, Technology and Society<br />
Utrecht University<br />
Nico<br />
Roozen<br />
director of Solidaridad<br />
Utrecht
www.essent.eu<br />
<strong>Essent</strong> as an employer<br />
<br />
<br />
a dedicated workforce<br />
Firms that mean business about their corporate social responsibility<br />
also mean business about the health, safety and<br />
welfare of their staff. There are simply no two ways about it.<br />
And it is not just because staff are entitled to good working<br />
conditions, a pleasant working atmosphere and plentiful<br />
career opportunities. Nor is it because companies that have<br />
a reputation for taking good care of their staff make a better<br />
impression on their customers. It is also because the People<br />
who bear the brunt of a company’s social responsibility are of<br />
course its staff.<br />
Our workforce of over 10,000 people in the Netherlands,<br />
Belgium and Germany represent an equal number of potential<br />
ambassadors. If we include their friends and relatives in<br />
the equation, the sum total is an army of supporters and wellwishers<br />
that would not even fit in the three largest football<br />
stadiums in the country. This is an opportunity we would<br />
very much like to seize. But we can do so only if we have a<br />
dedicated workforce that backs us up everywhere they go:<br />
at work, in the street, in pubs, at parties, at sports clubs and<br />
wherever else they may find themselves.<br />
Dedication hinges on the quality of work, development<br />
opportunities, leadership styles, the way in which people<br />
are remunerated and good, safe working conditions. Every<br />
year, we improve our performance in each of these respects.<br />
Judging by the findings of the <strong>Essent</strong> employee survey held<br />
at the end of 2007, we are now scoring above the Dutch<br />
national average. Having said this, given that we aspire to<br />
become one of the leading players on the market, there is no<br />
time to sit around and rest on our laurels.<br />
more diversity needed<br />
In order to wield influence in the world around us, we ourselves<br />
need to reflect the composition of the society in which<br />
we operate. Unfortunately, this is not something we have<br />
achieved yet. We are keen to employ more young people,<br />
more people from ethnic backgrounds and more women. In<br />
other words, we would like our workforce to be more diverse.<br />
Having said that, things are steadily changing. Step by step,<br />
we are moving towards a better balance in the composition<br />
of our workforce. Women are our first target. Recognising<br />
that change does not happen of its own accord, we are<br />
now taking action to recruit more women and increase the<br />
number of women in managerial positions. This also means<br />
getting more women into senior management.<br />
At the same time, we continue of course to do all we can<br />
to recruit and retain highly qualified technical and IT staff.<br />
Similarly, our skills development and training programmes<br />
continue unabated, as do our attempts to promote a healthy,<br />
safe working environment. However, we can only make rapid<br />
50 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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Main <strong>Essent</strong> business locations<br />
in the Netherlands,<br />
including number of employees<br />
Groningen 620<br />
Wijster 288<br />
Provincial <strong>Essent</strong> shareholders<br />
Zwolle 724<br />
Hengelo OV 236<br />
Arnhem 294<br />
’s-Hertogenbosch 2,577<br />
Geertruidenberg 380<br />
Weert 362<br />
Roermond 365<br />
Landgraaf 207<br />
progress by setting certain priorities. And diversity is one of<br />
them. This chapter examines the opportunities and threats<br />
facing us in this connection, both internal and external.<br />
workforce at a glance<br />
At <strong>Essent</strong> 10,223 people are employed (FTes, excluding<br />
<strong>Essent</strong> Kabelcom) <strong>Essent</strong> was formed by the amalgamation<br />
of a large number of local and provincial utility companies in<br />
the northern, eastern and southern parts of the Netherlands.<br />
These origins are still reflected by the towns in which our<br />
offices are located and the places where the bulk of our<br />
staff live. During the period since our inception, however,<br />
our market has extended to cover the whole of the country,<br />
as well as Germany, Belgium and even Switzerland (since<br />
2007). Our five largest places of business are in the towns<br />
of Den Bosch (2,577 FTes), Zwolle (724 FTes), Groningen<br />
(620 FTes), Geertruidenberg (380 FTes) and Roermond<br />
(365 FTes). We have 294 people working in our head office<br />
in Arnhem. <strong>Essent</strong> staff live all over the country. Some 68%<br />
of our staff do not live in the town where they work.<br />
staff inflow and outflow<br />
In 2007 the inflow rate of our own staff was 11.3%, compared<br />
with 13.0% in 2006. This slight decrease is due in part to the<br />
recruitment freeze affecting certain jobs that was announced<br />
at the time of the merger talks with Nuon. The outflow rate<br />
of ‘own staff’ was 6.3% in 2007, compared with 5.4% in 2006.<br />
The slight rise was caused primarily by staff leaving of their<br />
own accord. Some were unwilling to await the outcome of<br />
the merger talks with Nuon (fearing a reorganisation and a<br />
redeployment of company staff) and decided to pursue their<br />
careers with another employer.<br />
average age<br />
There was a slight rise in the average age of <strong>Essent</strong> staff,<br />
which went from 40 in 2006 to 41 in 2007. By way of comparison,<br />
the average age of the working population in the<br />
Netherlands is 39 (CPB, 2002).<br />
Incidentally, there are wide differences in average ages<br />
between the various business units. For example, the<br />
average age of staff employed in Production is 47, whereas<br />
the average age at Service & Sales and also at <strong>Essent</strong><br />
Trading is 35.<br />
loyalty<br />
Staff tend to remain with us for a long time, the length of<br />
service averaging 14.5 years. In fact, 25% of our staff have<br />
been with us for more than 25 years. These figures place us<br />
well above the national average of 9 years (CBS, 2001).<br />
51 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as an employer › Diversity in development
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diversity<br />
Although, on average, 27% of our workforce are women,<br />
the figures vary considerably from one business unit to<br />
another. The more technically oriented business units have<br />
traditionally been male-dominated domains, with the<br />
proportion of female staff being well below the average<br />
(i.e. 4% at Production and 17% at <strong>Essent</strong> Networks). The<br />
work performed by Service & Sales is of a more clerical and<br />
commercial nature, and the percentage of female staff employed<br />
there is higher than average, at 52%. The percentage<br />
of managerial posts held by women is 14%.<br />
Women are represented most prominently in the under-30<br />
age bracket at <strong>Essent</strong>, and are actually in the majority in<br />
the 20-25 age bracket. The proportion of women gradually<br />
declines as from the age of 30, with only a handful of women<br />
in the 55-plus age bracket. Only 12% of our male staff work<br />
part-time, compared to 46% of our female staff.<br />
permanent and temporary contracts<br />
Ninety percent of our own staff are employed on a permanent<br />
basis, i.e. under contracts of indefinite duration. In 2007,<br />
42 people were employed under work-experience contracts<br />
and 131 trainees spent their internships with us.<br />
absenteeism due to illness<br />
The absenteeism rate at <strong>Essent</strong> was 4.3% in 2007. As the<br />
comparable figure for the previous year was 4.2%, this means<br />
that there was a limited rise in the absenteeism rate in 2007.<br />
The difference is too modest, however, for us to be able to<br />
identify a single cause. The absenteeism rate at <strong>Essent</strong><br />
remains lower than the average for the energy industry as<br />
a whole (4.9% - CBS, 2004).<br />
complaints and problems<br />
A total of 15 formal complaints were made to our confidential<br />
staff counsellors in 2007. Four of these were referred to the<br />
Grievance Committee, which subsequently declared one<br />
of them inadmissible. The Grievance Committee reached a<br />
decision on all the cases submitted to it, including a case<br />
instigated in 2006, which meant that rulings were given on a<br />
total of five cases in 2007.<br />
employer of choice<br />
Everyone likes getting a word of praise from time to time.<br />
We do our best to be perceived as an attractive employer and<br />
thankfully our efforts are rewarded with praise. For example,<br />
our management traineeship programme, which has<br />
proved very popular among job-seekers, was ranked second<br />
in the contest for the Best Traineeship Programme in 2007.<br />
An annual survey performed by a weekly magazine called<br />
Intermediair ranked us among the country’s top-20 leading<br />
employers, citing our pay and fringe benefits as being the<br />
16th best in the country. A leading Dutch daily named us as<br />
the Best Employer of 2007, whilst our ICT Department was<br />
proclaimed Top ICT Employer of 2007 by the <strong>CR</strong>F market<br />
research agency. Naturally, we are extremely proud of all<br />
these titles. Moreover, with a ‘war for talent’ raging on the<br />
job market, they are also extremely useful marketing tools.<br />
Workforce diversity, male/female, at <strong>Essent</strong> in 2007<br />
<br />
<br />
Total <strong>Essent</strong><br />
Head office<br />
Corporate support departments/<br />
<strong>Essent</strong> Support Group<br />
Business Development<br />
Projects<br />
Generation<br />
<strong>Essent</strong> Trading<br />
Service & Sales<br />
Value Added Services<br />
Deutsche <strong>Essent</strong><br />
Networks<br />
Waste Management<br />
10,010<br />
1,412<br />
404<br />
43<br />
65<br />
612<br />
209<br />
2,348<br />
331<br />
25<br />
3,951<br />
610<br />
52 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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The DART rate explained DART rate = (number of DART-cases : total number of worked hours) x 200,000<br />
Our safety record is expressed in the form of a DART rate. The word DART is short for Days Away, Restricted or Transferred, i.e. it reflects the<br />
number of accidents or incidents that cause staff to take time off from work or which result in changes in their jobs for every 200,000 hours worked.<br />
The figures cover our own staff as well as staff employed by contractors. The definition originates form the US Occupational Safety and Health<br />
Administration (OSHA). We have chosen to adopt the internationally accepted OSHA 18001 standard as the basis for our system of accident<br />
registration and safety management. By taking this approach, we can compare our own safety record with that of other companies. The DART rate<br />
also forms the basis for the targets that our directors and operational managers are required to meet. Alongside the DART rate, we also keep record<br />
of other data giving information on other types of incidents and accidents (such as minor incidents in which first aid is given), as well as reports<br />
of unsafe behaviour and situations.<br />
In fact, things are moving so fast on the job market that the<br />
shortage of certain categories of staff, particularly people<br />
with technical qualifications, is becoming increasingly acute.<br />
Against this background, we are keen to do our very utmost<br />
to match supply and demand, without making any concessions<br />
to quality. We need to attract and retain highly qualified<br />
staff, entice young people to come and work for us and boost<br />
the number of women in our service. In other words, there is<br />
no time for us to sit back and rest on our laurels as we enjoy<br />
the flush of success. We need to work, day in, day out, on our<br />
image in the job market. We need to raise our brand awareness,<br />
make sure we stand out from the competition and<br />
project self-assurance and confidence.<br />
HEALTH AND SAFETY AT WORK<br />
safety takes precedence<br />
Our Code of Conduct makes no bones about it: “We guarantee<br />
healthy and safe working conditions for our staff.” There<br />
are no riders, qualifications or promises to try as hard as<br />
we can: It is a guarantee pure and simple. Health and safety<br />
is a corporate responsibility resting on all our shoulders.<br />
Obviously, the Executive Board is responsible for formulating<br />
policy, and equally obviously, the management has to make<br />
sure that this policy is put into effect. However, the policy can<br />
be effective only if we all comply with the rules and regulations<br />
and remain constantly alert – not just at work, but also<br />
on our way to and from work. The mission statement formulated<br />
for our HSE policy (Health, Safety and the Environment)<br />
represents a full endorsement of this principle: “Every member<br />
of staff should return home safe and healthy at the end of<br />
the day.” Although there is a great deal the company can do<br />
in this respect by pursuing effective policies, at the end<br />
of the day it is individual members of staff who get caught up<br />
in traffic congestion on their way home or who make a dash<br />
for a train in a crowded railway station. The same thing<br />
applies to safety helmets: they only work if people actually<br />
put them on. In other words, an effective HSE policy is the<br />
joint responsibility of management and all individual members<br />
of staff, irrespective of their organisational roles. The<br />
overriding aim is, in fact, very simple: we want to prevent all<br />
industrial accidents. This we wish to achieve by becoming<br />
one of the leading energy companies in terms of staff safety.<br />
An added benefit of an effective HSE policy is that it helps<br />
staff to work better and more effectively. It boosts staff<br />
efficiency, and that’s good news, for both us and our staff.<br />
the figures speak for themselves<br />
Our aim is to become one of the best-performing energy<br />
companies in northwest Europe by the end of 2008, with<br />
53 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as an employer › Diversity in development
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a DART rate of 0.80. The results of a European safety baseline<br />
survey performed by a firm of outside auditors (Det Norske<br />
Veritas) in 2007 show that we are well on the way to achieving<br />
our aim.<br />
Our DART rate for 2007 (based on approximately 31 million<br />
hours worked) was 0.97. This includes hours worked by<br />
outside contractors. We have devoted considerable attention<br />
to the latter aspect, given that our contractors’ safety record<br />
in 2006 was not as good as ours. The target we had set ourselves<br />
for 2007 was a DART rate of 1.0. As in the year before,<br />
we scored better than the target and, again as in 2006, we are<br />
pleased to report that no fatal accidents took place in 2007.<br />
HIGHLIGHTS OF 2007<br />
HSE Award<br />
We founded the HSE Award in 2006 as a means of raising<br />
safety-awareness among our staff. The award comes with a<br />
cheque for 5,000 euros, which the winner is required<br />
to spend on a good cause. In 2007, the HSE Award was presented<br />
to the Production business unit, for a new type of<br />
risk analysis performed prior to starting up power stations.<br />
HSE and Mobility Campaign<br />
The aim of this ongoing campaign is to reduce the amount<br />
of time spent on meetings and travel, and to encourage staff<br />
to make greater use of public transport and to drive safely.<br />
‘pump up those tyres’<br />
The aim of this pilot project is to sensitise staff to the consequences<br />
of low tyre pressure: the car uses 2 to 5 percent<br />
more fuel, there is a greater risk of accidents and the tyres<br />
themselves suffer more wear and tear.<br />
winter tyres<br />
All staff were invited to order special winter tyres for their<br />
cars at a discount. The scheme does not cover company cars<br />
(including leased cars), as these have already been fitted<br />
with winter tyres.<br />
Den Bosch Section of A2 Motorway Project<br />
The 15 largest companies in the Den Bosch region, including<br />
<strong>Essent</strong>, joined forces with the local Chamber of Commerce,<br />
the Ministry of Public Works, local and regional authorities<br />
and employers’ associations to find a solution to the problem<br />
of rampant congestion on the local stretch of the A2 motorway.<br />
The aim is to improve road access to the local region.<br />
safety kits<br />
With effect from 2007, all staff driving leased cars are issued<br />
with safety kits.<br />
Michiel Boersma, Chairman of the Executive Board,<br />
presents the HSE Award 2007 to the winning team of<br />
the Generation business unit. The 5,000 euros were spent<br />
on the restoration of St. Bavo’s Church in Raamsdonk.<br />
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policy on alcohol and drugs<br />
A new code of conduct on alcohol and drugs came into force<br />
on 1 May 2007. Our policy consists not just of strictly regulating<br />
the use of alcohol and drugs, but also emphasises the<br />
individual responsibility of staff in this respect. It is not just a<br />
matter of each person controlling his or her own behaviour,<br />
but also of their being willing to call colleagues to account<br />
for their actions.<br />
WHAT DO OUR STAFF THINK<br />
ABOUT US<br />
annual survey<br />
We have been conducting annual <strong>Essent</strong> employee surveys<br />
since 2003, with the assistance of a firm called TowersPerrin-<br />
ISR. Staff are asked to complete a questionnaire containing<br />
around 100 questions about the company’s long-term<br />
strategy and management style, their sense of loyalty to the<br />
company, communications, their future expectations, pay<br />
and fringe benefits, team spirit, etc. From the outset, the response<br />
to the survey has been enthusiastic, with the take-up<br />
rate consistently higher than 70%. In 2007, 77% of the workforce<br />
completed the survey.<br />
The survey findings show that, year-on-year since 2003, staff<br />
perceptions of <strong>Essent</strong> have steadily become more positive.<br />
For the first time this year, the scores awarded for all aspects<br />
surveyed were either equal to or higher than the Dutch<br />
national average. With the exception of the BU Value Added<br />
Services and <strong>Essent</strong> Trading, all business units returned<br />
significantly improved scores on the previous year. Deutsche<br />
<strong>Essent</strong> and <strong>Essent</strong> Belgium both performed very well, too.<br />
For this reason, we are planning to set our sights even<br />
higher next year. In the light of our aspiration to become a<br />
leading company, our benchmark will no longer be the Dutch<br />
national average, but the average score for ‘leading Dutch<br />
companies’. The 2007 survey findings make crystal-clear<br />
where improvements are needed in order to score on a par<br />
with leading Dutch companies. This is in areas such as staff<br />
loyalty, identification with the company’s long-term strategy<br />
and management style, reputation, trust and integrity. Each<br />
year, the survey findings are used to set the following year’s<br />
targets. The target set for 2007 was to enhance staff development<br />
opportunities (in terms of training) throughout the<br />
entire company.<br />
The main topic of debate in 2007 was of course the plans announced<br />
by the Minister of Economic Affairs to separate the<br />
networks from the energy companies. Frequent and lengthy<br />
meetings were held with the Central Works Council on this<br />
threat, and on the impact it would have both on the energy<br />
supply industry in general, and on <strong>Essent</strong> in particular.<br />
The Central Works Council decided to take action of its own,<br />
joining a campaign mounted by the National Platform of<br />
Energy Company Works Councils to oppose the Minister’s<br />
plans. In the end, sadly, we were unable to persuade the<br />
Minister to shelve her plans. The question of the separation<br />
of the networks from the energy companies will be a topic of<br />
further debate in 2008, as this is when preparations will need<br />
to be made for what is set to be a massive operation.<br />
lots of meetings last year<br />
At the beginning of the year, we presented the Central Works<br />
Council with our plans for the takeover of Westland Energie<br />
Services BV. The Council advised us to go ahead with the<br />
acquisition. During the same period, plans were also announced<br />
for a merger with Nuon and the Council was asked<br />
for its opinion on the merger. Frequent, intensive consultations<br />
were held with all the various staff consultative bodies<br />
here at <strong>Essent</strong>, and these continued until the talks with Nuon<br />
were broken off.<br />
Other topics of debate with the Central Works Council included<br />
the company’s HSE policy, the corporate strategy,<br />
the relocation of certain parts of <strong>Essent</strong> Trading to Geneva,<br />
the reorganisation of the BU Service & Sales, and the sale of<br />
<strong>Essent</strong> Domestiq Services BV.<br />
STAFF PARTICIPATION<br />
IN DECISION-MAKING<br />
constructive dialogue<br />
Staff participation at <strong>Essent</strong> is all about having a say in decisions<br />
and representing staff interests in decisions affecting<br />
the organisation as a whole. It is all about ensuring that our<br />
staff are closely involved in all major developments affecting<br />
the company, and feel free to say what they think in an<br />
atmosphere of constructive dialogue.<br />
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DILEMMA [ 6:1 ]<br />
But here is<br />
our dilemma as<br />
an employer:<br />
Women are seriously underrepresented at<br />
management level. How can we change this<br />
situation such that the composition of our<br />
<br />
management is a more accurate reflection<br />
of the society to which we supply energy<br />
<br />
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Employer/People
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it is hard to change a centuries-old tradition<br />
For more than 150 years now, the Dutch energy industry<br />
has been a white male bastion. Not that this is particularly<br />
surprising. When the energy companies were founded in<br />
the mid-19th century, working women were a virtually unknown<br />
phenomenon (with the exception of cleaning ladies).<br />
Because of the dominance of engineering and technology<br />
(which continued until the contours of a free energy market<br />
began to emerge), it was ‘jobs for boys only’ throughout this<br />
period. The fact is that there were no women engineers to<br />
employ.<br />
Invariably, energy companies were controlled and run by<br />
engineers, who occupied all the posts, even those that did<br />
not require any specialist technical expertise. The company<br />
managers were engineers: that was the rule. And those engineers<br />
were men, men who wanted their subordinates also<br />
to be engineers, preferably ones who had attended a college<br />
of technical education. Again, they would have been men.<br />
The lowest echelon in the company consisted of young men<br />
from junior technical schools. There may have been one or<br />
two exceptions from the rule, but this, basically, was the<br />
general picture in the industry. It also applied to <strong>Essent</strong>’s<br />
predecessor companies. Not surprisingly, 150 years of male<br />
domination have left their mark on the company.<br />
Women account for 27% of <strong>Essent</strong>’s workforce. The percentage<br />
falls to 14% in the case of managerial positions, and<br />
to 12.5% in the case of senior executive posts (both managerial<br />
and non-managerial). These are low figures compared<br />
with other Dutch companies. Vedior, for example, boasts a<br />
58% female participation rate, with Wolters Kluwer following<br />
in its wake on 44%, Fortis on 30% and KPN on 20%. With<br />
a national average of 7%, the Netherlands is not one of the<br />
leading lights in the international arena in terms of the ratio<br />
of senior managerial posts occupied by women. Norway<br />
(32%), Sweden (24%), Bulgaria (21%) and Latvia (21%) all<br />
perform better.<br />
In short, the stats are not good. But how urgent is the need<br />
for change at <strong>Essent</strong><br />
greater diversity urgently required<br />
Research shows that diversity fosters a spirit of enterprise,<br />
raises the quality of decision-making and generates higher<br />
profits. More diversity also means a better response to<br />
customer demand and a greater chance of attracting and<br />
retaining talented staff. But why<br />
better performance and a better atmosphere at work<br />
The presence of women in the workforce means decisions<br />
are given more careful consideration, and it also means a<br />
more pleasant atmosphere. Female qualities such as an ability<br />
to listen well, motivate other people and hedge one’s bets<br />
are needed to counterbalance typically male characteristics<br />
such as a desire to dominate, rivalry and pragmatism. As a<br />
further argument, over half of all university graduates these<br />
days are women, and this figure is only likely to rise in the<br />
future. On average, women perform better than men in higher<br />
education. In other words, greater diversity also means<br />
bringing more talented staff into the workforce. Finally, a<br />
range of studies and investment analyses have also shown<br />
that companies managed by women earn substantially<br />
higher profits than companies with all-male boards.<br />
For <strong>Essent</strong> in particular, there are two further reasons for<br />
increasing the proportion of women in the workforce. Firstly,<br />
in the majority of households, it is the woman who chooses<br />
the energy supplier. As the proportion of women working for<br />
us grows, so we will acquire a more female outlook, encouraging<br />
female consumers to identify more closely with our<br />
product offering.<br />
Secondly, raising the proportion of women in our workforce<br />
will help us form a better reflection of the society around us.<br />
This should boost public support for our activities in pursuit<br />
of sustainability and place us in a better position to strike the<br />
right balance between People, Planet, Profit and Power.<br />
As a final consideration, more women means more fun and<br />
more excitement. So what are we waiting for<br />
a formidable challenge<br />
Unfortunately, raising the diversity of our staff is not simply<br />
a question of a rubber stamp from the Board. Whilst it is true<br />
that a Board decision is needed to set the whole process in<br />
58 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
motion, the fact is that senior managers must themselves<br />
be in favour of greater diversity and must be ready to actively<br />
spread the message throughout the company.<br />
The next step is a culture change: diversity has got to become<br />
an issue that exercises the minds of staff throughout<br />
the company. Managers must be prepared to change working<br />
methods in their departments to accommodate the differences<br />
between the sexes. This is not just about differences<br />
in style and attitude, but also about different views on the<br />
work-life balance. It also means accepting the fact that many<br />
female staff are mothers (or want to become mothers) and,<br />
as a consequence, being prepared to alter ingrained habits<br />
and company regulations. Clearly, this is something that<br />
takes both time and goodwill.<br />
a special task force<br />
In order to set the process of change in motion and retain its<br />
momentum, the Executive Board acted on a proposal from<br />
Women’s Energy (WE), the company’s internal women’s<br />
network, and set up a special task force. The task force was<br />
given the job of mustering staff support for diversity, defining<br />
clear, objective targets and formulating a series of permanent<br />
measures.<br />
The first job of the task force, whose membership broadly<br />
reflects the company’s management, including the Executive<br />
Board, will be to formulate a diversity policy and define<br />
a number of measurable objectives. Two possible objectives<br />
might be: the outflow rate for female managers should not<br />
be higher than the comparable figure for male managers,<br />
and women should account for 20% of the top-100 senior<br />
managers at <strong>Essent</strong> within a period of three to five years.<br />
a long haul<br />
We are keen to learn from successful action already taken by<br />
other companies with a view to bringing about the requisite<br />
culture change. Women’s Energy, the network of female staff<br />
launched in 2006, will play a key role in raising the proportion<br />
of women in our workforce. Other tools we are planning<br />
to use include behavioural training for managers and new<br />
tools for communicating with job-seekers. Creating a sense<br />
of urgency by deploying ambassadors and organising ‘theme<br />
days’ is another important part of the mix.<br />
There are no two ways about it: <strong>Essent</strong> will be employing<br />
more women in the future. The change will not come<br />
overnight. Instead, it will be a matter of plugging away over a<br />
long period of time. Aware as we are of our male-dominated<br />
history, we realise that it’s going to be a long and difficult<br />
process. At the same time, it will also be a lot of fun – an<br />
interesting, surprising, exciting and colourful ride.<br />
59 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as an employer › Diversity in development
<strong>Essent</strong> Employee Survey<br />
Development measured<br />
Better score<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
than last year<br />
Expectations<br />
for the future<br />
Vision &<br />
Management Style<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
Role Support<br />
Communications<br />
Same score<br />
as last year<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
Focus on Customer<br />
and Deliverables<br />
Trust &<br />
Integrity<br />
2007<br />
2006<br />
2005<br />
2004<br />
Salary & Benets<br />
Employer/People
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
<br />
<br />
<br />
<br />
<br />
<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
2007<br />
2006<br />
2005<br />
2004<br />
<br />
<br />
<br />
<br />
<br />
<br />
IRS-Dutch National Benchmark<br />
<strong>Essent</strong> has conducted the taken in previous years, <strong>Essent</strong><br />
<strong>Essent</strong> Employee Survey annually<br />
since 2003. This instrument for the first time since 2003,<br />
beat the National Benchmark<br />
is used to keep the finger on the virtually across the board.<br />
pulse of organisational improvement.<br />
In addition to com-<br />
itself against the Benchmark<br />
Now <strong>Essent</strong> is ready to measure<br />
paring its own scores throughout<br />
the years, <strong>Essent</strong> also uses <strong>Essent</strong> outperforms the national<br />
for Leading Dutch Companies.<br />
the National Benchmark, the average in all areas addressed<br />
average performance of 50 in the Employee Survey, gradually<br />
climbing towards the status<br />
Dutch enterprises, to see how it<br />
measures up. Thanks to a range of top performer.<br />
of improvement measures<br />
<br />
than last year
Interviews<br />
<br />
Monic<br />
Bührs<br />
author of Stratego for Women<br />
director of In Touch Women Resource Management B.V.<br />
Limmen<br />
Marie-Christine<br />
Osterop<br />
programme manager at <strong>Essent</strong> Service & Sales<br />
member of the Women’s Energy <strong>Essent</strong> N.V.<br />
Arnhem
Monic Bührs<br />
<br />
“SO WHY ARE THERE SO FEW WOMEN IN MANAGEMENT JOBS IN THE NETHERLANDS WELL,<br />
to a certain extent, it has to do with Dutch culture: ambitious women attract criticism from<br />
other women, particularly when they combine work with a family. This often leaves them<br />
with a sense of guilt. To a certain extent, too, it’s a consequence of the country’s prosperity:<br />
many women simply have no financial need to go out and earn money for themselves.<br />
Another important reason is that women don’t make enough choices. You can’t have everything.<br />
If you consciously decide to give priority to a professional career, you’ve got to realise<br />
that this decision has all sorts of consequences, such as for your private life.<br />
Moreover, because women place a higher value on enjoying their work than men, they tend to<br />
concentrate more on the content-side of their jobs and make more sideways moves than men.<br />
Successful men, on the other hand, tend to follow a more logical, vertical line in their careers.<br />
And because men are often the ones in positions of power, CVs showing a lot of sideways<br />
moves don’t always make a great impression in job interviews.<br />
The fact that many women find it difficult to talk about pay during job interviews is another<br />
disadvantage. Male interviewers may conclude that their interviewee is probably a poor<br />
business negotiator.<br />
ANOTHER FACTOR IS THAT, ALTHOUGH ORGANISATIONS CLAIM TO VALUE ‘TYPICALLY FEMALE’<br />
competences such as good communication skills, empathy and interpersonal skills, when<br />
a woman displays these competences, they are seen as intrinsically female characteristics<br />
rather than as qualities in themselves. For example, a male manager who sends a get-well<br />
card to a member of his staff who is off sick from work is regarded as being considerate.<br />
However, a female manager who does the same thing is simply regarded as displaying ‘normal’<br />
behaviour.<br />
FINALLY, WOMEN ARE GENERALLY LESS GOOD AT RECOGNISING AND OBSERVING THE MANY<br />
rules, both written and unwritten, within organisations. Whether it’s a matter of networking<br />
or putting yourself in the picture, learning how to ‘play the game’ is a genuine competence<br />
that women with ambition need to acquire.<br />
There are, of course, no hard-and-fast rules, but I believe that women will need to occupy at<br />
least 25% of all management posts before they gain sufficient critical mass to be able to alter<br />
the rules of the game in a meaningful way.<br />
IN OTHER WORDS, THERE ARE LOTS OF ‘SOFT’ FACTORS THAT PLAY A ROLE IN RELATION TO THIS<br />
issue and these all require a great deal of thought. This is also why the problem has proved<br />
so hard to resolve.<br />
I WELCOME THE FACT THAT A WOMEN’S NETWORK WAS SET UP IN ESSENT IN 2006 – WITH THE<br />
full support of senior management – and that one of the network’s aims is to foster diversity in<br />
the company. I also applaud <strong>Essent</strong>’s decision to adopt a strategic policy on diversity as from<br />
2008. At the same time, it is clear from experience in other organisations that have already<br />
done a lot to make life easier for female staff that, in the end, it is up to the women themselves<br />
to make a difference.<br />
WHICH IS WHY I OFTEN SAY: LADIES, LET’S STOP MOANING AND START MAKING CHOICES.<br />
Let’s learn the rules and play the game. We may even enjoy it!”
Marie-Christine Osterop<br />
<br />
“TO ME, IT’S IMPORTANT THAT A TEAM’S COMPOSITION IS AS DIVERSE AS POSSIBLE. I’M NOT ONLY<br />
interested in the male/female ratio, but also in aspects such as age and personality profiles.<br />
After all, people tend to want to surround themselves with clones of themselves. Larger diversity<br />
brings out more perspectives, which is good for the decision-making process.<br />
I REGISTERED FOR WOMEN’S ENERGY BECAUSE I FEEL THERE’S SOME WORK TO DO AT ESSENT<br />
with regard to diversity. Women’s Energy has been active since 2006 as a women’s network<br />
within <strong>Essent</strong> and is intended for women who’ve already taken a number of career steps.<br />
The network currently has about 25 members. Although we’re still toying with the form, my<br />
first experiences with the network are positive. It isn’t a bunch of moaning women, but a club<br />
of colleagues who inspire each other and can learn from each other.<br />
What’s also positive in my opinion is that <strong>Essent</strong>’s top management offers Women’s Energy the<br />
room to develop as a network and takes us seriously. Early in 2008, for instance, we managed<br />
to convince the Executive Board to place diversity on the executive agenda. One of the resulting<br />
initiatives was the formation of a broadly based task force that will make proposals to<br />
increase diversity within <strong>Essent</strong>. <strong>Essent</strong> also decided to become a member of Opportunity in<br />
Bedrijf, an organisation for the promotion of diversity in business. Finally, the Executive Board<br />
promised to focus more on hiring women in managerial positions.<br />
I MUST SAY THAT, BEING A WOMAN, I NEVER FELT TREATED DIFFERENTLY THAN MEN AT ESSENT,<br />
but I do think that women in general operate differently than men. You often see – and<br />
I recognise myself here – that women are mostly concerned with the content of their job and<br />
want to achieve concrete results, and are less agile when it comes to networking and<br />
corporate politics, aspects that do matter at <strong>Essent</strong>. I, for one, sometimes forget to communicate<br />
a good result that I’ve achieved, not only to my principal, but also in a more organisationwide<br />
context.<br />
Perhaps <strong>Essent</strong> will become less politically driven in the future, but for the time being our<br />
corporate culture is something that we just have to deal with. If women find this hard to<br />
handle, they should probably take up the glove and do something about it. This applies to a lot<br />
of issues in my opinion: stop complaining, and take constructive action.<br />
THAT’S WHERE THE INITIATIVES OF WOMEN’S ENERGY COME IN: WE HAVE FAITH THAT ESSENT<br />
is serious about increasing the diversity of its staff base, and we are only too happy to help<br />
facilitate and, where possible, accelerate this process.<br />
ESPECIALLY AT ESSENT, WHERE WE HAVE SEEN MANY A REORGANISATION, THERE ARE PLENTY<br />
of ‘right’ moments to change the make-up of teams so that they become more diverse. What it<br />
comes down to now is that we seize these opportunities when they present themselves!”<br />
MONIC BÜHRS<br />
MARIE-CHRISTINE OSTEROP
“UP UNTIL 2007 ESSENT WAS NOT REALLY CONCERNED WITH THE SPECIFIC POSITION OF ITS<br />
ANOUK RASENBERG<br />
Anouk Rasenberg<br />
female staff, although there were some ad hoc initiatives, for instance within the framework<br />
of the War for Talent campaign, when some attention was given, for instance, to providing<br />
more job flexibility, a topic that is relevant to many women because of the work/life balance.<br />
The initiatives included facilitating working from home and introducing flexible work hours.<br />
I WOULD SAY THAT THE LACK OF FOCUS ON WOMEN WAS NOT BECAUSE ESSENT WAS UNWILLING;<br />
it was rather a question of priorities. <strong>Essent</strong> has undergone so many developments in recent<br />
years (reorganisations, far-reaching merger plans) that diversity never made it to the list of<br />
priorities.<br />
ALL THIS WILL CHANGE FROM 2008 ONWARDS: DIVERSITY WILL BECOME ONE OF OUR<br />
strategic spearheads. Early in 2008 the Executive Board decided to set up a diversity task force<br />
whose objective it is to create awareness and support, and to formulate targets and actions<br />
relating to diversity. <strong>Essent</strong> has also become a member of Opportunity in Bedrijf, an organisation<br />
that helps to promote diversity in businesses. Finally, we are studying the possibility of<br />
teaming up more with recruitment agencies that target specific groups, such as women.<br />
I DON’T HAVE ANY ILLUSIONS ABOUT ESSENT EVER REACHING THE 50/50 MARK AS FAR AS<br />
men and women in managerial positions are concerned. Much of the business is simply too<br />
technically oriented for that. You can see already that the share of women managers is<br />
considerably higher in our sales and corporate services departments than in the Production<br />
and Networks business units. We have to be realistic in that regard and set ourselves differentiated<br />
targets.<br />
ALTHOUGH THERE WILL BE NO DRASTIC CHANGES OVER THE COURSE OF ONE YEAR, I’M<br />
confident that our planned focus on diversity will pay dividends. This will not only work to the<br />
benefit of women at <strong>Essent</strong>, but it will also be good for <strong>Essent</strong> as a business. After all, research<br />
shows that diversity fosters a spirit of enterprise, as well as raising the quality of decisionmaking<br />
and generating higher profits, promoting a better response to customer demand, and<br />
increasing the chance of attracting and retaining talented staff.”<br />
MARGO VAN BERKEL
Margo van Berkel<br />
<br />
“WHAT CAN ESSENT DO TO IN<strong>CR</strong>EASE THE REPRESENTATION OF WOMEN IN SENIOR MANAGEMENT<br />
positions At Opportunity in Bedrijf, we have been mounting initiatives since 1996 to promote<br />
diversity in businesses through our network organisation and centre of excellence. Experience<br />
tells us that a firm that’s serious about diversity needs to focus on four main issues: demonstrating<br />
the business case, scrutinising recruitment and assessment procedures, monitoring<br />
internal transfers and promotions, and having a keen eye for corporate culture.<br />
STARTING WITH ISSUE ONE: MAKE SURE THERE’S A CLEAR BUSINESS CASE FOR MORE DIVERSITY.<br />
Why do we need to address diversity Diversity is not a ‘woman’s thing’ or a goal in itself,<br />
but has social relevance as well as being a corporate strategy. After all, diversity demonstrably<br />
leads to better business operations. In addition, a firm can’t afford – in these times of a<br />
candidate-tight market – not to utilise 50% of the available human capital to its full potential.<br />
AS A BUSINESS, YOU ALSO NEED TO S<strong>CR</strong>EEN YOUR RE<strong>CR</strong>UITMENT PROCESSES. AVOID<br />
emphasising merely the hierarchical or technical aspects of a business or a position in job<br />
ads; it is also important to communicate, for instance, that the firm also offers opportunities<br />
for coaching and personal development. These are aspects that are more appealing to women.<br />
THE NEXT THING IS TO FORM AS BROAD A RE<strong>CR</strong>UITMENT COMMITTEE AS POSSIBLE AND BE<br />
honest about preferences, rejections and assessments. Beware of preconceptions: not every<br />
woman wants a part-time job! And if they do, ask yourself whether that’s the end of the world.<br />
A lot of male managers seem to be doing other things one day a week, for instance teach<br />
at a university or college. What’s the difference<br />
ONCE YOU’VE MANAGED TO HIRE WELL-EDUCATED WOMEN, HELP THEM TO MONITOR THEIR<br />
career path. We know from practical experience that diversity does not take care of itself<br />
once you’ve hired enough ambitious women. The organisation needs to make conscious<br />
efforts to nurture diversity. It’s very important, for instance, to invite women to ‘ambition<br />
interviews’. Try to find out why a woman refuses a promotion: what would it take to make the<br />
most of the qualities and talents of this woman – within the restraints of a healthy business<br />
policy Perhaps her interests would be served by more flexibility in working hours and work<br />
stations<br />
THAT BRINGS ME TO THE IMPORTANCE OF THE INFORMAL SIDE TO THE BUSINESS CULTURE.<br />
Things to consider: how do you build a career in this organisation What behaviour is<br />
encouraged and what is not done And how does that affect specific groups A culture where<br />
it’s ‘cool’ to say that you work 60-hour weeks as a minimum is no longer appealing to young<br />
high potentials – women and men! Management by example also counts: people might<br />
remember that Hans Wijers, when he was the Minister of Economic Affairs, cancelled an<br />
important meeting because it was his daughter’s birthday. The leading motto is: ‘practice what<br />
you preach’. Make sure that there are enough role models in the organisation and show that<br />
differences are there to be celebrated. Feature an article in the staff magazine on men in<br />
part-time jobs or show that there are more ways than one to build a career, such as easing up<br />
on your career when there are small children involved, only to go at it full swing when they<br />
grow older.<br />
A FIRM THAT DEALS WITH DIVERSITY IN SUCH A TARGETED WAY WILL DISCOVER THAT<br />
improvements will follow suit. And that they won’t be the worse for it. Because ‘business is<br />
too important to just leave up to men’, as Mr Van der Waaij, CEO of Unilever Netherlands,<br />
so aptly put it.”
Anouk<br />
Rasenberg<br />
People Development manager at <strong>Essent</strong> N.V.<br />
Arnhem<br />
Margo<br />
van Berkel<br />
senior advisor at Opportunity in Bedrijf<br />
Amstelveen
<strong>Essent</strong> as a corporate citizen<br />
www.essent.eu<br />
<br />
<br />
participating in society<br />
As a business, we are at the heart of society. What is more,<br />
we are tied to it hand and foot. Just think about it: our customers<br />
are a cross-section of society. After all, we visit all our<br />
customers at home, if only just to read the meter. Our customers<br />
cannot do without our products, not even for a day.<br />
At times, we cause them some inconvenience, because our<br />
energy supply is not always without failure. People see our<br />
vans at busy intersections. They see us dig holes and repair<br />
pipes or cables.<br />
Our (public-sector) shareholders are elected by society.<br />
Farm lands are teaming with our underground pipes and cables.<br />
And many town’s folk and country people look out onto<br />
our transformer stations. Others live near our power stations<br />
or close to wind turbines. And when you are stopped at a<br />
railway crossing waiting for a train to pass, the next thing you<br />
know, you see a row of <strong>Essent</strong> freight cars carrying refuse<br />
rolling by. We could go on, but we have made our point:<br />
we matter to society and society matters to us. This raises the<br />
usual mutual obligations, for instance that we duly supply<br />
our products and that society duly pays for them.<br />
duty calls<br />
But we also have special obligations to each other. Together,<br />
we have to try to keep our community a place worth living<br />
and make it better where we can. As members of society,<br />
people role up their sleeves for the community, whether it<br />
means manning the bar at the local football club, handing<br />
out flyers for a political party or mowing a neighbour’s lawn.<br />
It just means making a contribution to the community other<br />
than through work.<br />
Being a corporate citizen – as <strong>Essent</strong> is –, <strong>Essent</strong> does exactly<br />
the same. In addition to our ordinary responsibilities,<br />
we want to contribute what we can and help build a better<br />
society. Sometimes our efforts are practically oriented, for<br />
instance when we encourage our employees to start volunteering.<br />
Other times, we focus more on contributing input,<br />
knowledge and ideas to projects where our expertise is valuable.<br />
And that does not mean that we only get involved<br />
in projects that serve our business interests. In many cases,<br />
we offer monetary support. We donate generous sums to<br />
social causes.<br />
Sceptics might say: that is all fine and dandy, but <strong>Essent</strong> is<br />
not a sugar daddy. It is a commercial business. And donating<br />
money to a cause is not necessarily a measure of ‘social<br />
engagement’. That would be called sponsoring, meaning<br />
that ulterior motives are involved. One might argue about<br />
whether support always qualifies as sponsoring, but we do<br />
not deny that we have ulterior motives.<br />
Why would we Perhaps society even floats on ulterior<br />
62 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
motives. The person manning the bar at the football club<br />
might not have any talent for football, but his volunteering<br />
still lets him share in the club’s championship. And maybe<br />
the woman handing out flyers for a political party is hoping to<br />
become a local councillor one day, which would make her a<br />
shareholder in an energy company. Who knows<br />
However that may be, people want to be appreciated for their<br />
efforts, as does a business. We, for one, mean to take up our<br />
part of the responsibility for the communities that we operate<br />
in. And our ulterior motives are that people know who we are<br />
when choosing their preferred energy supplier.<br />
our home turf<br />
<strong>Essent</strong> has operations across the Netherlands and in parts of<br />
Germany and Belgium. We regard these areas as our home<br />
market, the target of our socially oriented activities. And then<br />
there is our native district, the place were <strong>Essent</strong> originated:<br />
the northern, eastern and southern parts of the Netherlands.<br />
This is our parental home, so to speak, because our shareholders,<br />
i.e. provincial and municipal authorities, are located<br />
here. And it is where most of our staff live.<br />
We feel especially connected with local communities in<br />
those areas. <strong>Essent</strong>’s motto is: with one foot in North-West<br />
Europe and the other in the community. And that is right in<br />
line with our strategy. We are strong enough to be an international<br />
player and committed enough to cherish our roots.<br />
Of course, this is easier said than done. Is our focus on<br />
local communities not diametrically opposed to our interests<br />
in the rapidly developing international energy market<br />
63 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a corporate citizen › Committed to the community
7<br />
www.essent.eu<br />
BIESBOSCH 35<br />
GEERTRUIDENBERG ER<br />
RUI<br />
380KV<br />
NAAR<br />
KRIMPEN AAN DE IJSSEL<br />
AMERCENTRALE<br />
'S-HERTOGENBOSCH<br />
WEST 39<br />
WAALWIJK 17<br />
WKC HEINEKE<br />
MOERDIJK 34<br />
GEERTRUIDENBERG 25<br />
ZEVENBERGSCHENHOEK 65<br />
DONGECENTRALE<br />
EER<br />
BREDA 01<br />
OOSTEIND 15<br />
TILBURG NOORD 20<br />
TILBURG WEST 48<br />
PRINCENHAGE 63<br />
ETTEN 29<br />
BEST 36<br />
EIND<br />
ROOSENDAAL 09<br />
TILBURG CENTRUM 18<br />
TILBURG ZUID 38<br />
SDRECHT 12<br />
EINDHOVE<br />
HAPERT 37
OSS 08<br />
'S-HERTOGENBOSCH<br />
NOORD 06<br />
N 52<br />
AARLE-<br />
RIXTEL 32<br />
DE 23<br />
OVEN NOORD 02<br />
E<br />
CSR means resolving<br />
HELMOND<br />
OOST 50<br />
dilemmas<br />
EINDHOVEN OOST 22<br />
WKC HELMON<br />
DILEMMA [ 7:1 ]<br />
WKC HELMOND<br />
HELMOND ZUID 2<br />
We are a corporate citizen.<br />
Our activities are increasingly globalising.<br />
How can we nonetheless guarantee<br />
that we have our feet firmly planted in our local<br />
WKC EINDHOVEN 55<br />
communities<br />
MAARHEEZE 24<br />
WEST 46<br />
EINDHOVEN ZUID 26<br />
BUDEL 33<br />
NAAR<br />
NEDERWEERT<br />
Corporate citizen/Planet<br />
[ 64/65 ]
www.essent.eu<br />
Sponsoring comes in many shapes<br />
and sizes, from the Museum of Modern Art<br />
in Arnhem (part of the Dealing with reality<br />
exhibition) to speed skating.<br />
sponsoring and support of social causes<br />
There are different ways of showing that you care about society,<br />
one of which is being prepared to invest in activities or<br />
developments that are important to society, and earmarking<br />
sums of money for sponsoring or support to social causes,<br />
no matter what name this is given. What one company calls<br />
sponsoring, another might call a donation, and what one<br />
person would describe as support to social causes, another<br />
would simply refer to as sponsoring.<br />
In any event, the deal nearly always involves money that is<br />
offered to enable another organisation to achieve its goal,<br />
whilst agreeing with that organisation that they will render a<br />
service in return that will help you achieve your goal. This is<br />
the objective of sponsoring, but less so of support to social<br />
causes. The difference lies mainly in the service in return,<br />
which is measurable in either monetary or commercial terms;<br />
this is not our main objective when we make donations.<br />
In 2007 <strong>Essent</strong> donated approximately EUR 300,000 without<br />
demanding services in return.<br />
As a speed skating sponsor, we demand, for instance, that<br />
our name be printed on the boarding lining the skating<br />
oval, so that it features prominently on television. As a supporter<br />
of a commemorative book about a community, we are<br />
pleased – although we do not demand – that our name is<br />
mentioned on the cover and that the Mayor refers to us in his<br />
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speech when presenting the book. And in exchange for the<br />
money that we contribute to important research projects,<br />
we demand the right to apply the findings of such projects<br />
to our operations.<br />
What is clear is that sponsoring, donations and support are<br />
all branches of the same tree. Let us not complicate matters<br />
and speak of sponsoring from now on.<br />
sponsoring portfolio: a mirror of society<br />
Just like <strong>Essent</strong> itself, our sponsoring should mirror the<br />
breadth of society. That is why we focus on the areas of sport,<br />
culture, nature and social causes. The same adage applies<br />
to each area: the higher the amount we invest, the more the<br />
cause should be reflective of society as a whole. And when<br />
we say society, we refer first and foremost to a cross-section<br />
of our local communities, because they are our grassroots.<br />
For this reason, we have deliberately opted to sponsor speed<br />
skating. In the Netherlands, speed skating is a widely loved<br />
national sport, as well as being a top-class sport. Our marathon<br />
skaters are diehards, the all-round skaters are our<br />
national treasures, and our sprinters are cool. Speed skating<br />
is a tremendously popular spectator sport and when our national<br />
anthem plays to honour the champion, we collectively<br />
feel immense pride in being Dutch. Speed skating belongs<br />
to all of us.<br />
Smaller projects are often more aimed at specific target<br />
groups. Yet, these target groups tend to be diverse, especially<br />
in our communities. As such we sponsor the children’s<br />
theatre programme of the Odeon/de Spiegel theatre in<br />
Zwolle. We find it important that children are introduced to<br />
various forms of art at an early age. The <strong>Essent</strong>-kidreporters<br />
write reviews that are shared through the theatre’s website.<br />
Our sponsoring of the Drents Museum in Assen, the Museum<br />
of Modern Art in Arnhem and the Bonnefanten Museum<br />
in Maastricht is intended for anyone who is interested in art,<br />
arts and crafts, and history, or for anyone who might want<br />
to take an interest. Together with the three museums, we<br />
try to lower the threshold as much as we can. Because this<br />
requires our joint efforts, we recently decided to extend the<br />
contracts another three years.<br />
We have also focused intently on young people over the<br />
past years, for instance by organising the <strong>Essent</strong> Awards,<br />
incentive prizes for talented pop musicians, that have developed<br />
into prestigious Dutch music awards. We introduced<br />
the <strong>Essent</strong> Awards winners at large pop music festivals,<br />
including Noorderslag and Lowlands. And we saw many<br />
of ‘our musicians’ make it big after they had won an <strong>Essent</strong><br />
Award. We also footed the bill for their performances at many<br />
regional festivals.<br />
With the <strong>Essent</strong> Chess Tournament in Hoogeveen, which has<br />
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developed into the second-largest tournament in the Netherlands<br />
and the fourth-largest in Europe, we focus our attentions,<br />
mainly through the Internet, at the throngs of tactical<br />
sport lovers who learned to play chess at the kitchen table.<br />
And we make the people of Hoogeveen proud by putting<br />
their town on the map (except for the bridal couples who<br />
cannot be married at city hall for a week because the venue<br />
is reserved for top-class chess players).<br />
Our involvement in summer festivals such as the Boulevard<br />
Theatre Festival in Den Bosch, Noorderzon in Groningen<br />
and Cultura Nova in Heerlen lets us reach people of all ages<br />
who like to go out at night, visit the theatre and enjoy lazy<br />
summer nights.<br />
And our support of the World Wide Fund for Nature (WWF)<br />
draws the attention of anyone who cares about nature, the<br />
environment and sustainability. Together with WWF, we<br />
are engaged in many projects and campaigns to promote<br />
sustainability in the Netherlands. And WWF scrutinises our<br />
energy policy by looking over our shoulder. The discussions<br />
that we have with them in this regard keep us on our toes.<br />
Of course we are involved in many more projects, including<br />
many small-scale events and activities in our local communities.<br />
We take special care that we undertake colourful and<br />
exciting projects, so that our efforts reflect a mirror image<br />
of society.<br />
‘sponsor of the year’<br />
On this basis, we have defined and executed a sponsor policy.<br />
We are not doing all that badly, judging from the Sponsor<br />
Ring that was awarded to us in November 2007. The Sponsor<br />
Ring is an award honouring the ‘sponsor of the year’. The<br />
judges’ report praised us for our consistent sponsor policy, in<br />
which we showed ourselves to be a reliable, long-term partner<br />
for our sponsored causes and succeeded in positively<br />
influencing consumer brand preferences.<br />
teaching on the weekend<br />
One of the projects that lies close to our heart is our involvement<br />
in the IMC Weekend School project. This project, which<br />
is undertaken in the cities of Tilburg and Groningen, targets<br />
youngsters between the ages of 10 and 14 from underprivileged<br />
backgrounds. By offering them additional courses<br />
on the weekend we help them improve their career perspectives<br />
and boost their self-confidence. Our support is both<br />
monetary and practical. <strong>Essent</strong> staff regularly teach weekend<br />
classes also, either as volunteers or specialists.<br />
A large enterprise such as <strong>Essent</strong> has specialists in all<br />
shapes and sizes.<br />
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< Show from the children’s theatre programme<br />
performed at the Odeon/De Spiegel Theatre in Zwolle.<br />
Rinse de Jong (member of the Executive Board) and<br />
Marga Edens (CSR Manager) meet with the <strong>Essent</strong> members<br />
of Young Leaders for Nature to work on sustainable solutions<br />
for issues affecting society.<br />
encouraging volunteering<br />
At <strong>Essent</strong>, we encourage our staff to take up volunteering.<br />
What follows are just a number of examples. In April 2007<br />
<strong>Essent</strong> employees helped prepare a bandstand in the city of<br />
Zwolle for the festivities of Queen’s Day, the Dutch national<br />
holiday. They also improved the connection to the electricity<br />
grid. And a considerable number of people who walked the<br />
Pieterpad trail – we organise these walks to discuss CSR –<br />
got down to work as well. They cleaned up undergrowth in<br />
nature areas, built trails and suchlike.<br />
starry, starry night<br />
If the community wants us to focus on social issues, we are<br />
only too happy to take up our responsibility. On 27 October<br />
2007 the provincial environmental federations and<br />
Stich ting Natuur en Milieu organised a so-called Dark Night.<br />
This initiative is designed to darken the nights in the<br />
Netherlands, which is one of the most lit-up countries in the<br />
world. And using less electricity is better for our climate.<br />
We switched off the neon <strong>Essent</strong> logo signs at all our sites.<br />
investing in research and renewable energy<br />
You will not discover uncharted territory if you never stray<br />
from the beaten track. We need to be willing to venture into<br />
new areas in order to secure a sustainable energy supply<br />
in the future. And we need to invest in innovation. The only<br />
certainty that we have is that stagnation will not get us anywhere.<br />
Moving forward is what we want.<br />
Together with Delta, a fellow energy company located in<br />
the Province of Zeeland, <strong>Essent</strong> has established an investment<br />
fund for financing innovative enterprises and projects<br />
in the area of renewable energy. Investment specialists<br />
Chrysalix Energy and Robeco helped us to set up this Fund.<br />
The Fund goes by the name of Sustainable Energy Technology<br />
Fund, or SET Fund. <strong>Essent</strong> and Delta have each contributed<br />
EUR 25 million. The Fund plans to double that amount<br />
by involving other investors as well. The Fund will support<br />
young innovative enterprises in particular that are involved in<br />
developing new technologies for renewable energy, alternative<br />
fuels, carbon reductions and energy conservation.<br />
Although <strong>Essent</strong> and Delta will contribute their expertise and<br />
experience, the Fund is independent of its financiers.<br />
We also work in collaboration with institutes of learning.<br />
We sponsor research conducted at the universities of Groningen,<br />
Twente, Tilburg, Delft, Maastricht and Eindhoven.<br />
These are studies relating to energy supply and sustainability.<br />
In addition, we have forged investment alliances with<br />
many colleges of higher education in our home communities.<br />
We have done this also with a view to rejuvenating our employee<br />
base.<br />
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have exciting installations such as power stations and waste<br />
incineration plants to show them. We also concentrated more<br />
on local communities with our small-scale sponsor activities.<br />
In addition, we took stock of all our stakeholders and started<br />
to visit them or invited them to visit us.<br />
The results for 2007 are so encouraging that we will start<br />
to use this method in other areas as well in 2008. <strong>Essent</strong> will<br />
gain a greater presence in communities and become more<br />
accessible locally. We hope that this will help us to become a<br />
more close-knit member of local communities in the future.<br />
conserving energy together locally<br />
Our regional roots are also reflected in our collaboration<br />
with our shareholders. As our shareholders are local authorities,<br />
it is not surprising that we mean more to each other<br />
than is usual in a relationship between an enterprise and<br />
its shareholders. That is why we have developed the <strong>Essent</strong><br />
Shareholders Energy Conservation Plan as part of the overall<br />
<strong>Essent</strong> Conservation Plan, which focuses on households and<br />
business customers as well.<br />
The <strong>Essent</strong> Conservation Plan has also resulted in the ‘Save<br />
Your Energy’ curriculum for primary schools. On 23 November<br />
2007 the curriculum was presented first to a school<br />
by the name of Epemaskoalle in Ysbrechtum, in the northern<br />
Province of Friesland. The curriculum is looking to become<br />
a resounding success, having been ordered by more than<br />
500 Dutch primary schools already.<br />
deeply rooted in the community<br />
You need to be tied up with a community in order to be able<br />
to make a difference there. We will only be regarded as an attractive<br />
partner if our actions demonstrate that we value the<br />
community. This means that we need to be visible and accessible,<br />
to our customers, obviously, but also to authorities and<br />
other decision-makers, to our stakeholders and to influential<br />
organisations. In order to ingrain this in our minds, we have<br />
established the Regional Stakeholders Management. In 2007<br />
we gained experience with the concept in two areas, in the<br />
Provinces of Drenthe and Limburg.<br />
We focused on three core themes: raising our profile in the<br />
community, building a network with our stakeholders and<br />
actively supporting our ambassadors in their respective<br />
communities. We already had regional ambassadors (higher<br />
managers at <strong>Essent</strong>), but they had mainly applied themselves<br />
to their task on an individual and occasional basis before.<br />
They have now been given a pivotal role in the Regional<br />
Stakeholders Management and are supported by a special<br />
team for each area.<br />
To raise our profile, we started to direct our attention more<br />
at the regional media, asking them to report news and background<br />
information on <strong>Essent</strong>’s operations in the community.<br />
We also encouraged local people to visit our sites; why not<br />
invite your neighbours every now and then After all, we<br />
shareholders conserving energy<br />
Our shareholders asked us in December 2006 to present<br />
proposals for how we could encourage energy conservation<br />
together. They wanted to give more practical expression to<br />
their position as <strong>Essent</strong> shareholders, if possible in combination<br />
with their public duties as provincial and municipal<br />
authorities. Accordingly, they started to focus on sustainability<br />
and energy-saving, but also on poverty policy and the<br />
cost of utilities.<br />
This is how the Shareholders Energy Conservation Plan came<br />
about. It was presented to the shareholders in July 2007. The<br />
Plan’s goal is twofold: cutting costs by conserving energy<br />
and reducing CO 2 emissions.<br />
We provide the shareholders with our people and our expertise<br />
to create a bespoke energy conservation plan for each<br />
municipal authority or province, and to help them implement<br />
it, geared to the specific target groups in the area. Shareholders<br />
can also opt for a joint plan, for instance together<br />
with other municipalities, or a provincial plan that covers<br />
every municipality.<br />
<strong>Essent</strong> has committed itself to this Energy Conservation Plan<br />
for three years, and has also pledged money, i.e. EUR 5 million<br />
in 2007 and EUR 10 million in 2008; the budget for 2009<br />
will be set after the Plan has been evaluated.<br />
The budget is spread over the shareholders proportionate to<br />
their shareholdings. An amount of EUR 15 million is available<br />
for two years. If, for instance, a shareholder holds 10% of<br />
70 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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our shares, it will be allotted EUR 1.5 million from the<br />
Energy Conservation Plan. We would note that provincial<br />
authorities can also spend the money on projects undertaken<br />
in municipalities that do not hold shares in <strong>Essent</strong>.<br />
An energy conservation plan is made up of a plurality of<br />
component parts. A shareholder can choose from the<br />
following menu to combine options:<br />
■ energy advice within the scope of the Energy<br />
Performance Building Directive (EU label<br />
for the energy performance of residential and<br />
non-residential buildings)<br />
■ energy advice within the scope of the<br />
Dutch Environ mental Protection Act<br />
(consumption, opportunities for energy<br />
conservation and measures)<br />
■ lighting scan of office buildings<br />
■ lighting scan of street lights<br />
■ sustainable energy scans<br />
■ energy utilisation (performance contract)<br />
■ energy management/monitoring (insight into<br />
energy consumption)<br />
■ benchmark of municipal buildings<br />
■ implementation of energy-efficient measures<br />
(<strong>Essent</strong> can supervise the implementation process)<br />
■ introduction of energy management system<br />
(monitoring that savings are structural)<br />
■ safety certification for electricity and gas<br />
■ micro-cogeneration plants (in pilot setting only<br />
for the time being).<br />
Judging from the number of registrations, our shareholders<br />
are enthusiastic about our initiative. All provincial authorities<br />
and 56 of the 128 municipal authorities have already<br />
registered for the Energy Conservation Plan. Plans for the<br />
Provinces of Limburg and Noord-Brabant have already been<br />
worked out and are ready to go. The other Provinces will<br />
follow early in 2008. The Province of Flevoland will prepare<br />
a plan in collaboration with the municipalities of Urk and<br />
Noordoostpolder. Venray and De Wolden will be the first<br />
municipalities where the plan will be put into effect.<br />
The municipal authorities that have not yet registered will be<br />
approached early in 2008.<br />
The Plan for the Province of Noord-Brabant demonstrates<br />
clearly what an Energy Conservation Plan can do. It centres<br />
around an energy conservation desk: an information point<br />
for home owners about everything to do with energy, energy<br />
conservation and energy-saving subsidies. The same conservation<br />
desk is also being prepared to field questions from<br />
occupants of rented houses. In addition, the Plan involves<br />
a study of the feasibility of energy generation from kitchen<br />
and garden waste, and renewable options for street lighting.<br />
Streamlining opportunities for the district heating systems in<br />
cities such as Tilburg and Breda, and the viability of microcogeneration<br />
plants are also being investigated. The Plan<br />
will ultimately result in an energy saving of 178 TJ, i.e. 25%<br />
of the annual conservation target for urbanised areas in the<br />
Province of Noord-Brabant. CO 2 emissions will be reduced<br />
by 10 Mton per year. A start will be made with the execution<br />
of the Plan early in 2008.<br />
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71<br />
<strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › <strong>Essent</strong> as a corporate citizen › Committed to the community
Committed to society<br />
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Sponsor<br />
of the year<br />
In November 2007 <strong>Essent</strong><br />
was awarded the ‘Sponsor<br />
of the Year Award’ for its<br />
consistent sponsoring<br />
policy
Investing<br />
in innovation<br />
for tomorrow’s<br />
energy<br />
Society<br />
Conserving<br />
energy in the area<br />
where you live<br />
and work<br />
Making joint<br />
efforts;<br />
volunteering and<br />
IMC Weekend<br />
School<br />
<strong>Essent</strong> Shareholder<br />
Conservation Plan<br />
<strong>Essent</strong> helps local and<br />
provincial authorities achieve<br />
CO 2 reductions and cost<br />
savings locally<br />
<strong>Essent</strong> Consumer<br />
<strong>Essent</strong> Business<br />
Energy for the<br />
The energy<br />
Energy Conservation Plan<br />
Energy Conservation<br />
future<br />
you don’t use<br />
Gaining an understanding,<br />
Plan<br />
‘Save your Energy’ curricu-<br />
is your best saving<br />
taking action and monitoring<br />
Energy research, monitor-<br />
lum, teaching children about<br />
energy consumption<br />
ing and scans of climate<br />
sustainable energy, climate<br />
control, lighting and<br />
change and energy<br />
sustainability<br />
conservation<br />
Culture<br />
Museums<br />
<strong>Essent</strong> Music<br />
Awards<br />
Summer festivals<br />
Theatre
Interviews<br />
<br />
Marco<br />
Grob<br />
interim director of the Museum of Modern Art Arnhem<br />
Arnhem<br />
René<br />
Savelsberg<br />
managing director and CEO of SET Venture Partners B.V.<br />
Amsterdam
Marco Grob<br />
<br />
“THE RELATIONSHIP BETWEEN OUR MUSEUM AND ESSENT IS INDICATIVE OF A CERTAIN<br />
solidarity. After all, <strong>Essent</strong> does not traditionally have any customers in Arnhem. Their support<br />
to our museum can be seen as a calling card to the city. I believe that it has truly contributed<br />
to <strong>Essent</strong>’s image in Arnhem as a locally and culturally oriented enterprise. And it allows us to<br />
partner up with <strong>Essent</strong> where its cultural policy is concerned, together with the two other<br />
large museums that <strong>Essent</strong> supports. We effectively act as partners. We offer our advice on art<br />
exhibitions at <strong>Essent</strong> and regularly organise art shows together. It allows both of us to raise<br />
our profile and demonstrate to the community that locality matters. I feel that it has helped<br />
<strong>Essent</strong> to develop a positive and modern-day image, as well as a connection with the city<br />
where it’s headquartered.<br />
AN INVOLVEMENT IN ART MAY NOT BE SOMETHING YOU EXPECT FROM AN ENERGY COMPANY.<br />
Creativity is, though. To me, <strong>Essent</strong> is a creative company that doesn’t shy away from unorthodox<br />
methods. Just think of its solutions for renewable energy. Artists are the kings of unorthodox<br />
methods. That, and sustainability, is what connects us. Our art collection is part of our<br />
cultural heritage, something that we treasure. The same goes for nature: together, we need to<br />
conserve it for future generations.<br />
SOCIAL INVOLVEMENT IS ALSO A LINK THAT CONNECTS US. AS A MUSEUM OF MODERN ART,<br />
we’re constantly exploring reality and forms of realism. This stirs up questions. Art is critical<br />
and we do not only broach issues, but also want to convey a message. What I really enjoy is<br />
the creation of a vision for the future of the company: <strong>Essent</strong> 2030. The organisation invited<br />
artists to help plot this road. In turn, this creativity in dealing with your place in society and<br />
your own organisation leads to cross-pollination. We support each other in our quest; we help<br />
<strong>Essent</strong> in Arnhem and <strong>Essent</strong> helps us with our museum. And that reflects on both of us.<br />
BECAUSE OUR RELATIONSHIP SPANS A NUMBER OF YEARS, ESSENT LETS US LIFT THE MUSEUM<br />
to a higher level, allowing us to organise better exhibitions for our visitors from all over the<br />
country. This is how <strong>Essent</strong> gives back to people who might also be its customers. <strong>Essent</strong> truly<br />
gives art a chance. And art stimulates reflection, it encourages people to think and feel. This<br />
affects the lives of people, as does a business through its products, services and workplace.<br />
If businesses take their social role seriously, they should be giving back to society. That’s why<br />
we applaud investments in cultural institutions; they fulfil a valuable role in a city’s living<br />
environment. They cannot exist on municipal or national grants alone. Businesses need to get<br />
involved. That’s simply something you’re willing to do for each other.<br />
OUR LONG-TERM ASSOCIATION OFFERS US MANY OPPORTUNITIES TO DEEPEN OUR RELATIONship,<br />
including more mutual profiling and promoting our partnership. We would also like to<br />
utilise <strong>Essent</strong>’s knowledge in the areas of sustainability and energy management. How can we<br />
capitalise on each other’s added value in forging relationships with the city and its surroundings,<br />
that continues to be the key question. Art builds bridges between people, businesses<br />
and perhaps even between countries.”
René Savelsberg<br />
<br />
“CORPORATE VENTURING IS ESSENTIAL FOR LARGE ENTERPRISES IN ORDER TO KEEP IN TOUCH<br />
with the market for new developments where they are not or not yet active themselves. <strong>Essent</strong><br />
has chosen to do that in the best way possible, by participating in an independent fund with<br />
clear objectives. And especially the financial targets of such a fund also justify investments by<br />
the other fund partners. After all, that’s how economically viable innovations that are set to<br />
contribute to the sustainable energy supply of the future originate. But the EUR 25 million<br />
each that <strong>Essent</strong> and its partner, Delta, have made available for the fund for the next nine<br />
years are not enough. Although these are obviously large sums of money, more is needed to<br />
drive successful innovations. That’s why we also plan to attract other parties, and the chosen<br />
fund structure allows us to do just that.<br />
VENTURING TO INVEST IN INNOVATION IS ABSOLUTELY NECESSARY. IN GENERAL, LARGE<br />
enterprises should take a much more active role in innovations, especially energy companies.<br />
The demand for energy is enormous and will keep on growing. Sustainability issues will also<br />
gain in importance as a result. Corporate venturing is the perfect facilitator for <strong>Essent</strong> to<br />
contribute its share to the sustainable energy supply of the future. Although I do ask myself<br />
sometimes whether <strong>Essent</strong> would have made the same fund investments if it hadn’t been<br />
obliged to do so under the Borssele Covenant. At present, most innovations are not allowed to<br />
blossom because they don’t have enough scale or there’s no connection with the consumer;<br />
<strong>Essent</strong> has both. Scale is a prerequisite for successful innovations. And investing in tomorrow<br />
should be part and parcel of <strong>Essent</strong>’s place in society. Now’s the time to invest and make your<br />
mark.<br />
OF COURSE THERE ARE ALTERNATIVES TO CORPORATE VENTURING, SUCH AS FUNDING RESEARCH<br />
by a centre of excellence. But the question is whether that’s actually as effective. You should<br />
never underestimate the power of the market in innovations. Making the most of opportunities<br />
in a business setting and undertaking purely technical research are two different things<br />
altogether. Investments also need to be aimed at making a profit in the future. That’s the only<br />
way to develop truly useful technology. Research is not automatically profitable and tends to<br />
be out of touch with the market. What’s more, by investing in early-stage businesses now,<br />
<strong>Essent</strong> is involved in those technological developments. This allows <strong>Essent</strong> to prepare for the<br />
application of these new technologies and become an early adopter. You don’t achieve this<br />
through research or donations alone.<br />
THE SET FUND DOES NOT FOCUS ON LOCAL COMMUNITIES OR JUST THE NETHERLANDS.<br />
After all, technology is without boundaries and we need to invest where we see opportunities,<br />
whether they lie in the Netherlands or abroad. We have chosen to focus on Europe. Of course<br />
I understand that the <strong>Essent</strong> shareholders hope that we will invest in their respective areas,<br />
but I’m sure they’ll understand that we have to go after investments with the most potential.<br />
That’s how they best give expression to their own social responsibility as well. By investing in<br />
sustainable technology, through <strong>Essent</strong> and SET, the shareholders contribute directly to<br />
sustainability and the technology of tomorrow.”<br />
MARCO GROB<br />
RENÉ SAVELSBERG
“THE SHAREHOLDERS ENERGY CONSERVATION PLAN IS A GOOD EXAMPLE OF EFFECTIVE AND<br />
ANNEMARIE MOONS<br />
GIJSJE VAN HONK<br />
Annemarie Moons<br />
essential teamwork between <strong>Essent</strong> and its shareholders. There are regular meetings between<br />
us, the shareholders, and <strong>Essent</strong>’s management. During one of these meetings, <strong>Essent</strong> told us<br />
about their plans for promoting energy-saving as a means of helping customers to reduce<br />
their energy bills. We quickly agreed that this was something we could do in unison with<br />
<strong>Essent</strong> and asked the management to produce a more detailed plan. Energy conservation<br />
starts with awareness-raising among the general public, and this is where the provincial<br />
council has a role to play. Our common aim is to encourage people to save energy and hence<br />
reduce emissions.<br />
THE NEXT STEP WAS FOR US, AS THE MEMBERS OF THE PROVINCIAL COUNCIL OF NOORD-<br />
Brabant, to see what we could do to implement the Energy Conservation Plan in our own<br />
province. We tried to identify areas in which the Plan meshed in with our own policy plans, and<br />
then sought to formulate a series of realistic targets. The question we asked ourselves was:<br />
what can we actually achieve in concrete terms in the next two years Or, as the Ministry of<br />
Housing, Spatial Planning and the Environment puts it, ‘how can we get things done’ This is<br />
an important success factor. The Energy Conservation Plan is targeted at both new-build<br />
housing and existing homes.<br />
The energy conservation desk – which was set up by the Provincial Council and is already<br />
working well – encourages home-owners to take energy-saving measures. The desk supplies<br />
both local residents and housing corporations with information on energy-saving measures in<br />
and around the home. Subject to certain conditions, residents and corporations can also apply<br />
through the desk for financial support for certain measures, such as high-efficiency double<br />
glazing, solar panels, and roof and wall insulation.<br />
IN THE CASE OF NEW-BUILD HOMES, WE ARE USING THE ENERGY CONSERVATION PLAN TO<br />
support a project involving what are known as ‘energy-zero first-buy homes’. This will allow<br />
us to gain experience with all sorts of new techniques and products. We have also selected a<br />
further seven projects on which we will be conducting joint feasibility studies together with<br />
<strong>Essent</strong> during the coming two years. Teamwork is another critical success factor – the ability<br />
to work together and combine our mutual pools of expertise.<br />
THIS TYPE OF JOINT ACTION MAKES GOOD SENSE. AFTER ALL, THE PROVINCIAL COUNCIL HAS<br />
local knowledge to offer, and <strong>Essent</strong> has the necessary technical expertise. We’re perfect<br />
complements to each other. And I believe it’s good for <strong>Essent</strong> to raise its local profile. After all,<br />
the company itself came into being as an amalgamation of local and provincial energy<br />
companies.<br />
I BELIEVE THAT ESSENT’S DECISION TO COME UP WITH AN ENERGY CONSERVATION PLAN IS<br />
quite logical when you consider that it does more than just sell energy. An energy company<br />
also has a social responsibility, especially those that claim, as <strong>Essent</strong> does, to be ‘green’ companies.<br />
Green companies need to do more than simply invest in new, sustainable production<br />
capacity and supply green electricity. They also need to promote energy-saving and investments<br />
in energy-saving measures. <strong>Essent</strong>’s sharp focus on energy conservation is testimony<br />
to its confidence in itself.<br />
SO IS THERE ANYTHING ELSE THAT ESSENT SHOULD BE DOING I THINK THERE IS. THEY’RE<br />
already leading the way in the use of biomass as a fuel, and made great strides last year in<br />
relation to energy conservation. But there’s every reason to broaden their horizon. Why not<br />
show even more guts, and try and make progress on several new fronts at the same time<br />
How about an energy-neutral business park, or local energy generation in glasshouses and<br />
solar collectors These would not just be innovative, but also have a high regional profile.”
Gijsje van Honk<br />
<br />
“FOR A THEATRE SUCH AS OURS – THE LEADING THEATRE INSTITUTE IN THE CITY OF ZWOLLE<br />
and surrounding areas – corporate sponsors are lifesavers. That’s why we’re pleased that<br />
<strong>Essent</strong> has decided to become the principal sponsor of our children’s theatre programme for<br />
three years, starting from the theatre season 2007/2008. This allows us to present a larger and<br />
more diverse offering of theatre shows than would otherwise have been possible. Now we<br />
don’t have to limit ourselves to the ‘hits’, but we can also stage productions that may be lesser<br />
known, but are certainly worth watching. Just to illustrate: in the theatre season 2007/2008 we<br />
will put on over 70 children’s shows, from plays and musicals to concerts, dance and puppet<br />
theatre. <strong>Essent</strong> leaves the choice of what performances to stage entirely up to us, and that’s<br />
the way it should be.<br />
OUR COLLABORATION WITH ESSENT IS NOT LIMITED TO THEATRE SHOWS ALONE: WE HAVE<br />
introduced the ‘<strong>Essent</strong>-kidreporters’, enthusiastic eleven and twelve-year olds who visit one<br />
or more performances and write up a review, which we then post on our website. These are all<br />
concrete things that help us to achieve an important goal, i.e. to raise the level of cultural<br />
awareness in the greater Zwolle area, and to offer our youngest of audiences a nourishing<br />
cultural environment.<br />
FIRMS SPONSORING A THEATRE OR MUSEUM SET AN EXAMPLE FOR BUSINESSES THAT ARE NEW<br />
in town: by social involvement in areas that are not their core business, the corporate sector<br />
helps to make the local community an exciting and colourful place to live.<br />
I WOULD THINK THAT ESSENT ALSO BENEFITS FROM ITS TIES WITH ODEON/DE SPIEGEL. THEY<br />
help <strong>Essent</strong> to raise its profile in a sympathetic way in an area where it has a large customer<br />
base, as well as enabling it to organise functions in our theatre every now and then, and<br />
welcome business relations here. A case in point is a symposium entitled “Tomorrow’s<br />
Energy”, which <strong>Essent</strong> has scheduled for 18 March 2008 in Odeon/De Spiegel and where a<br />
host of prominent speakers will express their views on the energy supply of the future.<br />
ESSENT NOT ONLY SPONSORS OUR THEATRE, FOR THAT MATTER, BUT ALSO SUPPORTS STICHTING<br />
Cortegaerdt, an organisation promoting the hustle and bustle at the theatre, and offering a<br />
meeting place for businesses located in the greater Zwolle area.<br />
IN MY OPINION, ESSENT PLAYS A POSITIVE SOCIAL ROLE IN OUR LOCAL COMMUNITY: IT HELPS<br />
to support the community and create a connection between parties that would otherwise not<br />
have been likely to meet.”
Annemarie<br />
Moons<br />
member of the Provincial Executive of<br />
Noord-Brabant with special responsibility<br />
for Economic Affairs and Sustainability<br />
Gijsje<br />
van Honk<br />
director of the Odeon/De Spiegel theatres<br />
Zwolle
8<br />
www.essent.eu<br />
Measuring sustainability<br />
<strong>Essent</strong> aims to be a leading sustainable energy company.<br />
We already expressed this ambition in 2006. Sustainability<br />
is not something that is confined to regional markets. We<br />
source our biomass on the world market, we have people<br />
working as far away as in Geneva and the climate situation is<br />
a global issue. In this report, we have emphatically reiterated<br />
our sustainability ambitions.<br />
Ambitions are a good start, but what is our actual status<br />
How sustainable are our operations compared with those<br />
of other energy companies Are we in the break-away group,<br />
are we giving chase, or are we stuck in the back of<br />
the bunch We could just follow our instincts, but there is<br />
nothing like objective measuring. And that is exactly what<br />
we decided to do.<br />
the proof is in the numbers<br />
We had a benchmark performed based on the Dow Jones<br />
Sustainability Index (DJSI). Dow Jones is a reputable agency<br />
and leading provider of global business news and information<br />
services. It publishes The Wall Street Journal, among<br />
other publications. Their DJSI is the most important global<br />
index tracking the performance of leading listed sustainability-driven<br />
companies worldwide. Dutch companies such<br />
as TNT, Unilever, Philips and Akzo Nobel are benchmarked<br />
against the DJSI.<br />
<strong>Essent</strong> not being a listed company did not prove to be an<br />
impediment whatsoever. Our performance could be benchmarked<br />
against that of listed energy companies in every<br />
respect and weighed against the same criteria. Although we<br />
are, and will remain, the odd one out where the DJSI indexes<br />
are concerned, the outcome is extremely reliable.<br />
The benchmark was performed by Swiss-based firm SAM<br />
(Sustainable Asset Management), which is a division of<br />
Robeco. The assessment is made based on questionnaires<br />
that need to be completed by the benchmarked entity itself,<br />
corporate documentation (including the Annual <strong>Report</strong> and<br />
the CSR <strong>Report</strong>), third-party documents, public information<br />
and personal contacts between analysts and the corporation.<br />
<strong>Essent</strong> is the first Dutch energy company to have its<br />
sustainability performance benchmarked against that of its<br />
listed peers in the rest of the world based on this index.<br />
We have opted for the following three benchmark levels:<br />
■ Global<br />
benchmarked against 39 listed energy companies<br />
■ European<br />
benchmarked against 15 listed energy companies<br />
■ North-West Europe<br />
benchmarked against 7 listed energy companies<br />
74 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
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We made this choice in order to end up with a useful outcome.<br />
A benchmark of our performance against our global<br />
peers only might have produced a biased view with too comfortable<br />
a score. For this reason, we added Europe<br />
and North-West Europe to the equation. After all, we want<br />
to know as accurately as possible where we stand and<br />
how our sustainability performance compares against that<br />
of our peers.<br />
assessment along three dimensions<br />
Our sustainability performance was assessed along three<br />
dimensions, i.e. an economic dimension, a social dimension<br />
and an environmental dimension. The economic dimension<br />
involved an assessment of our policies concerning corporate<br />
governance, our Code of Conduct, human rights, discrimination,<br />
women in management positions, risk and crisis management<br />
aspects, and customer satisfaction.<br />
The environmental dimension addressed our energy-generating<br />
methods, emissions, power stations output, sourcing<br />
policies for products and services, landscape management,<br />
preservation of biodiversity and suchlike. The social dimension<br />
comprised an assessment of social aspects, including<br />
focus on internal affairs such as employee development,<br />
training and satisfaction, and our occupational health and<br />
safety policy. External involvement in the form of sponsoring<br />
and relations with stakeholders are assessed along the<br />
social dimension as well.<br />
our score<br />
At global level, <strong>Essent</strong> achieved an overall score of 68%,<br />
which is amply higher than the average score of 57%.<br />
The highest score among the 39 benchmarked energy<br />
39 companies globally in 2007 <br />
<br />
<br />
<br />
Overall scores<br />
Individual scores<br />
Economic dimension<br />
Environmental<br />
dimension<br />
Social dimension<br />
68<br />
57<br />
81<br />
74<br />
61<br />
86<br />
58<br />
52<br />
81<br />
74<br />
58<br />
86<br />
7 companies in North-West Europe in 2007 <br />
<br />
<br />
<br />
Overall scores<br />
Individual scores<br />
Economic dimension<br />
Environmental<br />
dimension<br />
Social dimension<br />
68<br />
72<br />
78<br />
74<br />
75<br />
84<br />
58<br />
67<br />
80<br />
74<br />
73<br />
86<br />
75 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Measuring sustainability
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companies was 81%. As indicated above, one might question<br />
a benchmark against energy companies from other parts of<br />
the world. That is why we are more interested in comparing<br />
our sustainability performance against that of our European<br />
counterparts. Since the outcome of both European benchmarks<br />
is more or less the same, we have decided to concentrate<br />
mainly on our score benchmarked against the seven<br />
North-West European energy companies.<br />
Our overall score of 68% is slightly below the North-West<br />
European average of 72%. The highest score among the<br />
seven benchmarked energy companies was 78%.<br />
We scored 74% along both the economic and social dimensions,<br />
which is more or less in keeping with the European<br />
average of 75% and 73%, respectively. The detailed report<br />
shows that we are doing well as regards corporate governance<br />
(although we do not employ enough women), risk<br />
management, occupational health and safety policies, and<br />
our commitment to society.<br />
Our human resources policy, recruitment and retention<br />
practices, and performance reporting were rated slightly<br />
below average. In addition, our role as a corporate citizen<br />
(understanding of the effects of sponsoring) is not really up<br />
to scratch. We scored 44% at an average of 66%.<br />
Unfortunately, our performance along the environmental<br />
dimension is lagging somewhat behind. We scored 58% at<br />
an average of 67%. What is most striking in this regard is that<br />
<strong>Essent</strong> has so far failed to adequately define concrete targets<br />
in the area of climate strategy (45% at an average of 60%)<br />
and emissions reduction (35% at an average of 70%).<br />
We are also trailing behind our peers where monitoring of,<br />
and reporting on, performance delivery are concerned.<br />
follow-up actions<br />
The information on which this benchmark is based relates<br />
to 2006. In 2007 we already proceeded to define a host of<br />
additional sustainability objectives, for both internal and<br />
external purposes. We plan to translate those sustainability<br />
ambitions into more quantitative targets and their monitoring.<br />
The dilemmas that are formulated in this report will help<br />
us to do so.<br />
Naturally, we will investigate in 2008 where and how we<br />
can further fine-tune our climate objectives and step up our<br />
sustainability efforts. The outcome of the benchmark has<br />
steered us in the right direction. In our CSR <strong>Report</strong> on 2008<br />
we will report on the progress we made.<br />
76 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
9<br />
www.essent.eu<br />
Assurance <strong>Report</strong><br />
TO: THE STAKEHOLDERS OF ESSENT N.V.<br />
Engagement<br />
We have performed an assurance engagement in accordance<br />
with the Standard 3410 ‘Assurance Standard relating to<br />
Social Responsibility <strong>Report</strong>s’. Our assurance engagement<br />
concerns the 2007 Corporate Social Responsibility <strong>Report</strong><br />
(CSR) of <strong>Essent</strong> N.V (<strong>Essent</strong>) and is aimed to obtain:<br />
■ Reasonable assurance that chapter 1 ‘Retrospective and<br />
outlook’, chapter 6 ‘<strong>Essent</strong> as an employer’, chapter 8<br />
‘Measuring sustainability’ are, in all material respects,<br />
an accurate and adequate representation of the policy<br />
and business operations regarding Corporate Social<br />
Responsibility during 2007.<br />
■ Limited assurance that the other information in the<br />
2007 CSR report of <strong>Essent</strong> is, in all material respects,<br />
an accurate and adequate representation of the events<br />
during 2007.<br />
Procedures performed to obtain a limited level of assurance<br />
are aimed at determining the plausibility of information and<br />
are less extensive than those performed in an assurance<br />
assignment to obtain a reasonable level of assurance.<br />
The information published concerning the environmental<br />
and human resources information about swb AG, Deutsche<br />
<strong>Essent</strong> and minority interests (of less than, or equal to, 50%,<br />
where <strong>Essent</strong> does not have control of operations) are not<br />
included in our assurance engagement.<br />
Management’s responsibility<br />
The management of <strong>Essent</strong> is responsible for the information<br />
contained in the 2007 CSR <strong>Report</strong> and the preparation<br />
of the <strong>Report</strong> in such a way that it provides an accurate and<br />
adequate view of the policy, measures, and performance<br />
of <strong>Essent</strong> concerning CSR. That responsibility comprises,<br />
among other things, the design, implementation and maintenance<br />
of an internal control system that helps that the CSR<br />
report does not contain any material inaccuracies, as well as<br />
the selection and use of acceptable principles for measuring<br />
and presenting sustainability performance results, and<br />
the maintenance of estimates that, under the given circumstances,<br />
can be deemed to be reasonable. The choices made<br />
by the management, the scope of the report and the reporting<br />
principles, including the inherent specific limitations that<br />
might affect the reliability of the information contained in the<br />
report, are explained in chapter 3 ‘Structure of the report and<br />
accountability’.<br />
Auditor’s responsibility<br />
It is our responsibility to formulate a conclusion with regard<br />
to the 2007 CSR report of <strong>Essent</strong> on the basis of the engagement<br />
outlined above.<br />
Procedures<br />
We performed our procedures in accordance with Dutch law<br />
and the requirements set out therein with the independence<br />
of assurance team members. The test criteria that we used<br />
are the Sustainability <strong>Report</strong>ing Guidelines (G3) published<br />
by the Global <strong>Report</strong>ing Initiative, the social reporting guide<br />
of the Dutch Accounting Standards Board (Raad voor de<br />
jaarverslaggeving) and <strong>Essent</strong>’s own reporting policies.<br />
We believe that these criteria are sufficient in view of the<br />
purpose of our assurance engagement.<br />
Our principal procedures relating to the information used<br />
to obtain limited assurance were as follows:<br />
■ Obtaining an understanding of the sector, organisation<br />
and it’s most relevant social responsibility issues;<br />
■ Assessing the acceptability of the reporting policies<br />
used and their consistent application, as well reviewing<br />
significant estimates and calculations made in preparing<br />
the 2007 Corporate Social Responsibility <strong>Report</strong>;<br />
■ Reviewing the plausibility of the information contained<br />
in <strong>Essent</strong>’s Corporate Social Responsibility <strong>Report</strong> by<br />
performing analytical procedures at group level and<br />
at site level in the Netherlands, conducting interviews<br />
with responsible company officers, and checking the<br />
substantiations of this information on a test basis, as<br />
well as retrieving the relevant corporate documents and<br />
consulting external sources;<br />
■ Assessing the overall view of the 2007 Corporate Social<br />
Responsibility <strong>Report</strong> based on the above criteria.<br />
Procedures added to obtain reasonable assurance regarding<br />
the information in chapters 1, 6 and 8, were the following:<br />
■ Identifying inherent risks relating to the reliability of the<br />
information and investigating the extent to which these<br />
risks are covered by internal controls;<br />
■ Performing tests of control to review the existence and<br />
78 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong>
www.essent.eu<br />
effectiveness of the internal controls aimed at reviewing<br />
the reliability and adequacy of the information;<br />
■ Following the audit trail on a test basis, from the source<br />
data through to the information contained in the 2007<br />
Corporate Social responsibility report;<br />
■ Performing tests of detail on a test basis aimed at<br />
reviewing the reliability of the primary information.<br />
Conclusion<br />
On the basis of our procedures aimed at obtaining reasonable<br />
assurance we conclude that chapter 1 ‘Retrospective and<br />
outlook’, chapter 6 ‘<strong>Essent</strong> as an employer’, chapter 8 ‘Measuring<br />
sustainability’ are, in all material respects, an accurate<br />
and adequate representation of the policy and business<br />
operations regarding Corporate Social Responsibility.<br />
On the basis of our procedures aimed at obtaining limited<br />
assurance we have no reason to conclude that the information<br />
in the 2007 CSR report of <strong>Essent</strong> is not, in all material<br />
respects, an accurate and adequate representation of the<br />
events that took place in 2007, in accordance with the Global<br />
<strong>Report</strong>ing Initiative guidelines, the social reporting guide<br />
issued by the Dutch Accounting Standard Board and the<br />
documented reporting policy of <strong>Essent</strong>.<br />
Rotterdam, 27 February 2008<br />
For Ernst & Young Accountants<br />
Signed D.A. de Waard<br />
79 <strong>Essent</strong> N.V. 2007 CSR <strong>Report</strong> › Assurance <strong>Report</strong>
www.essent.eu<br />
Colophon<br />
Abbreviations<br />
V volt, unit of electric potential<br />
J joule, unit of electric work<br />
A ampere, unit of electric current<br />
VA volt-ampere, unit of apparent power<br />
W watt, unit of actual power<br />
Wh watt-hour, unit of number of watts supplied per hour<br />
k kilo = 1,000 (e.g. kV = kilovolt, kWh = kilowatt-hour, kW = kilowatt)<br />
M mega = 1,000 kilo<br />
G giga = 1,000 mega<br />
FTE fulltime equivalent; unit for expressing total number of staff<br />
based on a full working week<br />
This CSR <strong>Report</strong> is published in Dutch and English. In the event of any<br />
discrepancies, the Dutch printed version takes precedence.<br />
This CSR <strong>Report</strong> was printed on PEFC-certified, chlorine-free Lessebo<br />
paper. The Programme for Endorsement of Forest Certification Schemes<br />
(PEFC) is a global set of standards for sustainable forest management<br />
and supply chain certification. The European Commission stated in 2005<br />
that it considered PEFC and the Forest Stewardship Council (FSC) as<br />
equal standards for sustainable forest management (EU A6-0015/2006).<br />
The standards provide an assurance mechanism to purchasers of wood<br />
and paper products that they are promoting the sustainable management<br />
of forests by means of independent assessments.
www.essent.eu<br />
<strong>Essent</strong> N.V.<br />
Nieuwe Stationsstraat 20<br />
6811 KS Arnhem<br />
P.O. Box 268<br />
6800 AG Arnhem<br />
The Netherlands<br />
Tel.: +31 (0)26 851 1000<br />
Fax: +31 (0)26 851 1389<br />
www.essent.eu<br />
Editing & coordination<br />
Eduard Wijnoldij Daniëls<br />
Chris Arthers<br />
Marga Edens<br />
Joke ten Hove<br />
Marjolijne van Huissteden<br />
Marieke Mooij<br />
Production<br />
Copy<br />
Jan Veenstra, Hoogeveen<br />
Theme location photos and portrait of M.A.M. Boersma<br />
Taco Anema, Amsterdam<br />
Portraits interviews<br />
Paulien de Gaaij Fotografie, Utrecht<br />
Images openingpage dilemmas<br />
ESA p. 31<br />
Thermographic images<br />
Courtesy NASA/JPL-Caltech p. 45<br />
FLIR Systems Benelux p. 57, 65<br />
Translation<br />
Ernst & Young Language & Translation Services, The Hague<br />
Design, art direction and photography<br />
Design Studio Hans Kentie BNO, Leusden<br />
Lithography and printing<br />
Drukkerij Rosbeek B.V., Nuth<br />
Binding<br />
Binderij Hexspoor B.V., Boxtel<br />
Date of publication: 31 March 2008
Energy demands energy. And energy demands <strong>Essent</strong>.<br />
With more than 2.7 million private and business customers,<br />
<strong>Essent</strong> is the Netherlands’ largest energy company. The<br />
company is the Netherlands’ largest producer of sustainable<br />
energy. <strong>Essent</strong> has more than 90 years’ experience of<br />
generating, trading, transmitting and supplying electricity.<br />
And we have been handling gas for 150 years.<br />
<strong>Essent</strong> possesses all the knowledge in house to make the<br />
best use of the energy the earth has to offer. Energy that<br />
is everywhere readily available. From wind, sunlight,<br />
biomass, all around us. <strong>Essent</strong> is unique in knowing how<br />
to make the most efficient and effective use of the available<br />
energy. We put all our energy into that, so that you have<br />
a guarantee of affordable energy for the future. And you can<br />
depend on that.