annual-and-sustainability-report-2014

Customer solutionsthat enable sustainableuse of energyEnsuresustainability inthe supply chainSafeguardthe company’sTransform theproduction portfoliotowards lowerCO 2 emissionsand morerenewablesIncreasefocus on otheremissionsProtect natureand speciesand safeguardbiodiversityImprove resourceefficiencyin Vattenfall’soperationsintegrityTakeresponsibilityEnsure afor Vattenfall‘shealthy andimpacts on localsafe workplaceOur employees communitiesSustainable consumptionSustainable productionDevelopments during the year | Sustainable productionTake responsibility for Vattenfall’s impacts on local communitiesSustainable financial performanceVattenfall’s operations have impacts on local communities– both positive and negative. Vattenfall’s lignite mineshave a large impact on local communities, including theoccasional necessity for people to resettle as a result ofmining operations. At the same time, mining operationscreate local jobs.To build and maintain local acceptance, mutual trust and a good reputation,Vattenfall strives to include stakeholders in decision-makingprocesses. Stakeholder engagement is crucial for Vattenfall’s licenceto operate as well as for the success of new projects and existingoperations.How is Vattenfall working with this?It is important for Vattenfall that the people who live close to thecompany’s operations are adversely affected as little as possible.Regardless of the type of impact the operations may have, Vattenfallstrives to be as responsive as possible to the affected stakeholders’needs and demands, regardless of their gender, age or ethnicity. Workon reducing impacts on local communities is continuously carriedout towards the goal of improving and adapting to local needs in theorganisation and to promote active collaboration with local interests.The Vattenfall Project Management Model (VPMM) is an obligatorytool used across the Group for governance and support for addressingand taking local interests into account in various projects. It is theresponsibility of each project manager to implement the project managementtool. All project managers, decision-makers and – to someextent – project participants are offered training in the tool.Activities during the yearIn cooperation with local authorities, Vattenfall has established a fund,the Pen y Cymoedd Community Fund in connection with thePen y Cymoedd Wind Energy Project in the UK.At an early stage of an ongoing project, Vattenfall engaged in adialogue with Gällivare skogssameby (a Sami village), one of the keystakeholders, to establish local acceptance of Vattenfall’s power linesnearby the Boliden mine in Gällivare. Discussions were held with villagerepresentatives on suitable areas in which the power lines couldbe drawn. By taking into account the interests of the local reindeerindustry, Vattenfall has established a relationship that has strengthenedconfidence in the ongoing process. The project is expected tobe completed in 2017.StrategyVattenfall will strive for active collaboration with local interestsin various projects in an effort to build mutual trust throughopenness and involvement in local communities, while complyingwith local laws and regulations and taking local expectationsinto account.Targets/KPIAll assets projects will take into account and address impactson the local communityVattenfall Reputation Index (VRI) score of 65 by 2020Achievements 2014Local acceptance for new distribution line in northern SwedenEstablishment of a community fund in connection with thePen y Cymoedd Wind Energy Project, see belowChallengesNo follow-up or implementation of Vattenfall’s projectmanagement tool are performed at the Group level. As aresult, the quality and degree of stakeholder involvementmay vary from project to projectA more proactive approach requires investment of a greatamount of timePen y Cymoedd Community FundPen y Cymoedd Wind Energy Project is a 76 turbine wind powerdevelopment project in UK which will generate enough electricityto meet the needs of 140,000 homes per year. As part its localinvolvement, Vattenfall provided funding for the Pen y CymoeddCommunity Fund in cooperation with local authorities. Onceoperational the wind farm will generate GBP 1.8 million per yearfor the community fund for more than 20 years. Via web-basedplatform local citizens can propose how funds should be spent;so far suggestions have been received from more than 3,000residents. In this way the community has a say in how to use thewind farm benefits.Planned activitiesThe VPMM is under continuous improvement, and its processes andproject quality are reviewed annually through a quality assuranceprocess. The results are analysed, and areas for improvement inthe coming year are discussed within a VPMM network comprisingrepresentatives from the business. Going forward, the VPMM projectnetwork will continue to highlight the importance of promoting stakeholderinvolvement in an effort to build trust and local acceptance. Development of Vattenfall Reputation Index, VRI7060Target by 2020504030201002012 2013 2014SwedenGermanyNetherlandsVattenfall’s reputation is measured through the Vattenfall Reputation Index (VRI). In Sweden theVRI score remains at a very low level. The level stablised in 2014, but at a level that is lower thanfor the company’s main competitors. Vattenfall’s reputation in Germany and the Netherlands ishigher than in Sweden and improved further in 2014. The general public’s perceptions surroundingcommunity responsibility, sustainability, and products and services have the greatest impacton Vattenfall’s reputation. Vattenfall’s work with continuous improvement in these areas explainsthe positive development in both Germany and the Netherlands.42 Vattenfall Annual and sustainability report 2014