Materiality analysis
Issue | Description | Stakeholder | Development 2008 | Further information |
|---|---|---|---|---|
| 1. Nuclear waste | Waste from nuclear power generation is a concern for many stakeholders. Methods for final storage to safeguard human health and safety over the long time period of radiation are being developed. Vattenfall plays an active role in the ongoing activities, in Sweden through its ownership of SKB. In Germany the Federal Government is responsible for the final disposal of radioactive waste and the operators of nuclear power plants are responsible for interim storage. | Authorities Citizens NGOs Media |
According to the Swedish time plan for permanent storage a decision on location will be taken during 2009. In Germany a repository for high-level radioactive waste is needed by 2030. The exploration of the foreseen site at the Gorleben salt dome is politically stopped. | Management approach Environment, EN22, 2005 CSR Report (pdf) Vattenfall webpages |
| 2. Emissions | Vattenfall’s emissions to air mainly derive from fossil fuel and biomass-fired power plants. NOX , SO2 and particulate emissions have been reduced in most operations, but CO2 remains to be targeted in order to reduce climate impact. CO2 emission reductions can be achieved mainly through Carbon Capture and Storage (CCS) technology and increased generation from renewable energy sources. Half of Vattenfall’s current electricity generation is low CO2 emitting (hydro power, wind power and nuclear power). | All | • Inauguration of CCS pilot plant in Schwarze Pumpe. • Investments in wind power in the UK. • Investment decision on de-sulphurisation at the Siekierki power plant in Poland. |
Technology as a tool for reducing emissions EN16–20 Annual report 2008 CSR Report 2007 - Number One for the environment |
| 3. Resource efficiency and management of production residues |
Resource efficiency is fundamental for sustainability. Improving efficiency means society’s need for energy can be met with less impact. Efficiency measures target all resources used in operations, including fuels, water, energy, capital, etc. Management of production residues is important for society. It includes handling hazardous waste but also re-use of residues when possible (for example production of gypsum in the flue gas cleaning processes, which leads to less use of natural mined gypsum in the construction industry). | Politicians Authorities NGOs Owner Capital providers |
• Continuous efficiency improvements (see Economic performance management approach ). • Increased use of waste as a fuel ( EN1–3 ). |
EN1–9, EN11–15 |
| 4. Supply chain practices and contracting | Vattenfall is expected to be a transparent and fair player in business. In procurement, UN Global Compact standards must be met, including human rights, labour standards, and environmental and anti-corruption standards. This is ensured by audits when deemed necessary. |
Customers Authorities Politicians NGOs Employees Media |
• Group-wide code of conduct for suppliers established. • Audits of large fuel suppliers performed. • Vattenfall joined the UN Global Compact initiative as a business participant in June 2008. |
HR management approach, HR2, CSR report 2007 |
| 5. Security of supply |
Vattenfall’s role in society is to provide energy. Power outages and supply shortages have severe consequences. Expectations are placed on the energy system in terms of reliability, availability and affordability, in both the short and long term. Continuous efforts are made to ensure security of supply in the generation portfolio as well as reliability of distribution and transmission grids. | Customers Citizens Politicians Capital providers |
Vattenfall invested approx. SEK 20 billion in electricity and heat generation in 2008, and SEK 6 billion in the electricity distribution and transmission grid. | Economic performance EU26–28 Annual report 2008 |
| 6. Operational safety | Safety is a primary concern in all Vattenfall operations. All stakeholders give high priority to nuclear safety, and Vattenfall has taken measures to strengthen Group-wide work on nuclear safety. Focus is also on dam safety in hydro power plants, safety around high-voltage grids, etc. | All | • Safety processes in the nuclear power plants are emphasised. • Accident rates were reduced by one-third between 2006 and 2008. |
EN management approach, CSR Report 2007 - Number One for the customer |
| 7. Investments in renewables | Vattenfall is expected to play a leading role in generation from renewable energy sources with the purpose of reducing CO 2 emissions and securing a long-term supply of energy. The share of energy generation from renewable energy sources is increasing through a strong investment plan. Research and development (R&D) efforts aim at developing potential large-scale viable solutions. | All | • Leading role in wind power development. • Increased use of biomass. • R&D and investments in ocean energy. |
EN5–7, Economic performance Annual report 2008 |
| 8. Employer practices | To ensure continued development of the company and to attract the right competence, Vattenfall strives to create a safe, healthy and stimulating work environment. This includes offering competitive benefits and training, ensuring diversity (age, gender and ethnicity) in the workforce and management, improving labour/management relations and assuming responsibility for occupational health and safety. | Employees and potential employees Politicians |
• The Management Planning and Competence Planning processes have been combined and give better output. • The focus and follow-up on commitment targets has increased. |
A diverse Vattenfall performs better , LA1–14, HR4 |
| 9. Land use and ecosystem impact | Energy generation and distribution has an impact on the landscape and ecosystems. Examples are the impact on rivers of hydro power, and the impact on landscapes from wind power and lignite mining. Vattenfall strives to manage this impact in a responsible manner through a number of programmes. | Neighbours NGOs Authorities Politicians Citizens |
Continued efforts have been made to reduce ecosystem impact. | EN11–15, CSR report 2007 Benchmark of the Industry |
| 10. Customer service |
Vattenfall aims to provide energy at fair and market-based prices. Prices are a major concern for customers in all markets, and taxation has a major impact on consumer prices. Vattenfall strives to provide excellent customer service. The customer offering also includes support for energy efficiency, which can reduce the total energy cost for customers, as well as a declaration of origin and information on environmental impact. | Customers Owner Capital providers |
A trend-break in customer satisfaction index (CSI) in the Nordic. Increase sales of products with declaration of origin. | Product responsibility management approach, PR5 |
| 11. Economic performance and growth |
Economic performance and growth is a fundamental requirement for Vattenfall to ensure funding for investments and enable the company to play an active role in developing future energy solutions. The long-term profitability target set on Vattenfall by the owner is 15% of return on average equity. Also, management is committed to maintain a single A debt rating. | Owner Capital providers Politicians Society |
A number of acquisitions were made in 2008, especially in wind power in the UK. Vattenfall’s economic performance was stable during 2008. |
Economic performance, EC1–8 |
| 12. Stakeholder engagement and community relations |
Vattenfall aims for open, transparent and perceptive communication with all stakeholders. This applies to neighbours and the local communities where the company operates, but also to society at large. Stakeholders’ needs and expectations are important input in the planning of business operations. | Neighbours Citizens Politicians NGOs |
Group guideline for stakeholder dialogue established, which will be implemented in 2009. | EU18, 4.14–4.17 |
