Managing impacts of operations and displacement (SO1, EU19, EU21)

Access to energy is a prerequisite for the function and development of society. Vattenfall’s responsibility as an energy company is to provide energy solutions that meet customers’ and society’s needs. Vattenfall strives to manage the impact of its business in a responsible way, balancing the needs of different stakeholders.

It is important for Vattenfall that the people living in the vicinity of the company’s operations are not affected more than necessary. Regardless of the type of impact the operations may cause, Vattenfall as a company tries to be as receptive as possible to the needs and demands of affected stakeholders. Vattenfall has therefore established processes to interact with communities when planning for new operations. This is to ensure that everybody has an opportunity to have their say and suggest possible improvements.

Resettlement and mining operations

Vattenfall’s lignite mining operation in Germany has a direct impact on communities, and several small communities have been resettled as a consequence. During 2008 no people were resettled, but resettlements are planned for the future. For this purpose, a formalised socially acceptable resettlement process is used to ensure that Vattenfall is a Benchmark of the Industry by handling the issue with great care and respect. The resettlement programme involves all aspects, from financial compensation to preserving the social structure in the village. At the beginning of the resettlement process an assessment is performed which involves all citizens. The assessment results in a specification of social requirements (Soziales Anforderungsprofil, SAP). The resettling community and Vattenfall then sign specific resettlement agreements that address the following points:

• All inhabitants will be moved to a common location together. New villages are connected to existing communities. If there is no access to services (e.g. schools, utilities, healthcare) in the existing community, new institutions are built. This way both communities benefit.
• The resettlers are included in the overall process of resettlement and are involved in shaping it. The resettlers are part of a working group together with Vattenfall and the county. As part of this working group, the resettlers are fully involved in the complete process of resettlement. It is the resettlers who decide on the new location, usually by choosing between up to five different locations. The next step is that all resettlers are given the opportunity to choose their new place of property and direct neighbours. Furthermore , all residents’ requests and suggestions are considered, such as clubs and social associations of the resettled and the new communities.
• The affected villages are developed and preserved until the time of resettlement.
• Property owners are compensated on the basis of their existing property by providing them with adequate family-based replacement property with no need for new funding.
• A tenant action concept provides a number of guarantees, including acceptable rents in rented apartments at the resettlement location.
• Small businesses are preserved and continued.
• Community life in clubs and associations is kept functioning and is supported. The resettled community has all necessary infrastructure to conduct social activities, sports or other recreational activities, including stadiums and community centres. Items of cultural heritage, such as historical monuments or buildings, are transferred to the new location. Furthermore, funds are raised to support social and sports activities, events such as anniversaries and local traditions, social work and economic development.
• For the move itself, an action concept is drawn up together with the resettling and the absorbing communities.
• The move is carried out in the shortest time possible.

Three villages have been resettled since 2001, and there are plans to resettle one more village in 2013.

The northern Swedish community of Kiruna, where Vattenfall is the electricity network owner, is being resettled as a consequence of the mining operations of the Swedish company LKAB. Vattenfall has co-operated with local authorities (Kiruna Municipality, the Norrbotten County Administrative Board, the Swedish Road Administration and the Swedish Rail Administration) and LKAB on stakeholder expectations and the planning of the new grid. Requirements were that it should be flexible to adapt to changing plans for the future locations and meet high environmental standards. Most construction in central Kiruna is now completed and the first relocation will take place in 2010. Costs for the new distribution grid, approximately SEK 400 million, are being shared by LKAB and Vattenfall.