Our impact on society

The energy transition is causing major changes in the energy system. Electrification of the energy supply increased notably in 2023, especially due to the continued growth of grid feed-in from non-fossil, decentralised energy sources. At the same time, demand for electricity transmission rose due to increased use of electric vehicles, heat pumps and economic growth. Gas distribution amounts dropped. These developments are beneficial for the climate impact and for meeting the goals of the Climate Agreement. Due to the major challenges we face as an organisation to make the country more sustainable and to achieve the energy transition, our impact on society is huge. In this chapter, we will illustrate our social impact and value creation based on the International Integrated Reporting Council’s six capitals model. 

Focus on impact

Focusing on impact in an organisation such as Alliander means that, among other things, we require an insight into the internal value drivers and managing instruments. In 2023, we investigated what will need to be added to achieve a focus on impact in every nook and cranny of our organisation. This would enable us to take better decisions on projects and activities. In 2023, we assessed internal working methods and designed a Biodiversity governance model. Alliander is one of the co-founders of the ‘Verbond van Brede Welvaart’ (General Prosperity Association) and collaborates actively with network operators to develop working methods for measuring and driving general prosperity.

Harmonising the impact model in the sector

Alliander, Gasunie, Stedin, Vitens, Enexis and Prorail are working together on developing a sectoral model for measuring social impact. Among other things, we are using a handbook updated in 2023 for this with additional information about measuring and reporting on biodiversity, ecological damage through procurement of materials and the impact of work-related outages and accidents. The update aligns all the impact calculations within the sector, with links to the Corporate Sustainability Reporting Directive (CSRD).

Impact and SDGs

Alliander’s activities contribute to achievement of the Sustainable Development Goals (SDGs) adopted by the member states of the United Nations in 2015. These seventeen Sustainable Development Goals aim to put an end to poverty, inequality, injustice and climate change by 2030. The Netherlands has also committed to achieving these goals. Government, politicians and companies are currently working out their contribution in more concrete detail. The result of the SDG analysis is documented in our connectivity matrix. This matrix shows the relationships between our process of value creation, the material topics, performance and the SDGs. Impact measurements are used to calculate the extent to which our activities affect society. We can see whether we have achieved our goals and what our contribution to the global SDGs is. By being transparent about our calculations and measured results, we can actively involve our stakeholders in our development, the contribution we make to the SDGs, the choices we make regarding the SDGs we want to contribute to and our value creation in a broad sense.

SDG

Description

Indicators

 

As an energy network operator, we play a vital role in guaranteeing a safe, affordable and constant availability of sustainable energy. SDG7 largely coincides with our mission and strategy. We see opportunities and challenges for the proper regulation of the heating market and energy storage, flex-markets, the technical and regulatory feasibility of smart connections, system integration and the prevention of network problems. Together with our supply chain partners, we want to continue making a contribution to a sustainable energy supply system at low costs.

Financial capital
Manufactured capital
Natural capital
Intellectual capital

 

We work non-stop on ensuring a safe and fair working environment for all our employees and an inclusive corporate culture.

Human capital

 

Every day, we focus on making our networks suitable for the requirements of the energy transition. We facilitate customer choices, make maximum use of digital opportunities, actively create open networks and do our work efficiently. The speed of the energy transition creates new challenges that require us to continuously innovate and invest in our network. We support our customers in the built environment in switching to a sustainable energy system.

Manufactured capital
Intellectual capital

 

The agreements in the Regional Energy Strategies (RES) and the elaboration of the Dutch Climate Agreement in combination with social initiatives lead to concrete strategies and district plans. Our task is to assist municipalities in this process and to programme and implement changes as well as possible. By enabling energy feed-in and connecting a growing number of charge points for electric mobility, we are also contributing to the sustainability of our cities, towns and communities.

Social capital

 

We are acutely aware of the impact of our operations on the planet, and strive to make our business operations climate-neutral and circular.

Natural capital

 

Climate change leads to our assets being subject to changing physical conditions, such as drought and flooding. We are giving increasing attention to how to respond and adapt to the consequences of climate change in relation to the energy network and our assets.

Natural capital

Most significant results in 2023

  • The energy transition is accelerating. The number of gas connections is dropping and the number of electricity connections is rising.

  • The electricity mix is becoming cleaner, which reduces the pressure on climate change per kWh.

  • Electricity transmission is intensifying, increasing the total pressure on natural capital.

  • Congestion issues are restricting access to energy and impacting social capital as a result.

CVO of the Year award

The CVO of the Year award is an initiative of the Impact Economy Foundation. The award emphasises the importance of social value and celebrates CFOs who are committed to this. CFO Walter Bien was one of the recipients of the award in 2023. The panel of experts valued his innovative methods for integrating sustainability in decision-making and financial processes.

Our Sustainability and Corporate Responsibility report: general prosperity measured

Alliander follows the six capitals model of the International Integrated Reporting Council (IIRC). We measure impact at the level of society as a whole: where the impact may be limited at group level, it can be perceived as extremely large in an individual context, for example, the impact of an accident or individual energy costs. We quantify our social impact by expressing our positive and negative effects on the environment in euros, in a manner that is as objective as possible. In the model, we quantify and monetise the impacts where we can make the largest contribution to society, both in terms of our direct activities and in the supply chain. We have described the other indicators qualitatively and made an estimation on the basis of external sources. Supply chain impacts are effects for which parties in the chain are jointly responsible. For basic assumptions, calculations and comparative figures, please refer to the Accountability document. Our aim is to contribute to broad prosperity in society by reducing the negative impact and increasing the positive impact. In doing so, we contribute to the global climate objectives, as agreed at the Conference of the Parties (COP), to the United Nations Sustainable Development Goals (SDGs) for 2030 and to the development of general prosperity, measured in the Statistics Netherlands Monitor of Prosperity in the Netherlands.

Details of our impact in 2023

The distribution of energy and its feed-in to our networks make a positive contribution to the economic development and welfare of regions and stakeholders. The investments we make for this are very much needed. Employees and suppliers add significant value to this and receive a reward for their performance. On the other hand, we know that we are also removing value from society through our activities, for example, through the emission of greenhouse gases, the use of raw materials, safety and security risks, and the effects of interruptions in the energy supply. The section below provides a more in-depth explanation of our negative and positive impact on each type of capital. Closer collaboration with other energy network operators has increased the extent to which the results are comparable regarding the indicators for human and natural capital.

Our impact model

Capital value decrease

(€ millions)

Capital value increase

Financial capital

Sale of business premises
13
i Other revenue
54
All revenue that cannot be directly attributed to Alliander’s core activities. Examples are subsidies and the leasing of buildings. A negative correlation exists between other revenue and financial capital.
i Contributions received
140
Every year, Alliander turns to third parties to balance its budget.
i Change in cash and cash equivalents
39
If Alliander’s position in cash and cash equivalents increases (or decreases), this reduces (or increases) the impact of alternative social spending options.
i Tax
3
Direct taxes (income tax, sufferance tax) and indirect taxes (customers’ profits/wages as a result of Alliander’s activities and the energy tax that customers pay) have a positive impact on society.
i Loans raised and repayments received
926
Alliander withdraws cash and cash equivalents from the capital market and receives repayments and interest on outstanding loans. These cash flows withdraw funds, which as a result cannot be used for other (social) projects.
i Dividends, repayments and interest
308
Every year, Alliander pays money to investors in the form of dividends to shareholders or repayments with the associated interest to creditors.
i Payments by customers (business)
782
Total invoiced costs to business customers for the use of our services. Cash and cash equivalents that are paid to Alliander cannot be spent on other activities.
i Payments to employees
539
Alliander generates social value for employees and agency workers by paying out salaries and social security contributions.
i Payments by customers (households)
1,860
Total invoiced costs to consumers for the use of our services. Cash and cash equivalents that are paid to Alliander cannot be spent on other activities.
i Payments to suppliers
2,885
Alliander uses many incoming capital flows to procure goods and services. This has a positive impact as these cash and cash equivalents can be released and used for social goals elsewhere.

Manufactured capital

i Contribution of heating transmission to consumer well-being
2.5
The contribution of heating transmission to the social value which heating consumption represents for consumer well-being (heating and warm water).
i Contribution of solar energy feed-in to well-being
27
The feeling of well-being experienced by consumers due to the possibility of feeding in solar energy to the electricity grid.
i Digital security: cybercrime and hacking prevention
The contribution of company assets and systems in restricting the risks associated with data crime and hacking.
i Change in economic value of traditional assets (internal)
Change in value of Alliander’s assets according to the annual figures and the balance sheet movements. This includes the net increase in value as a result of new investments and depreciation.
i External change in value of assets
The financial and non-financial change in the value of traditional assets and new infrastructure for society. Examples are the expected depreciation of the means of transmission of natural gas and the expected positive impact of newly installed charging stations and smart meters.
i Value of goods procured for business customers
368
The value of the goods purchased and the network losses which Alliander incurs when facilitating energy transmission for business customers.
i Value of energy transmission for business customers
715
The contribution of energy transmission to the value which energy represents for the production of goods and services by business customers.
i Value of goods procured for gas transmission
780
The value of the goods purchased and the leakage losses which Alliander incurs when facilitating gas transmission.
i Contribution of gas transmission to consumer well-being
2,373
The contribution of gas transmission to the social value which gas represents as a source of consumer well-being and comfort (heating, cooking). The occurrence of outages diminishes the positive value.
i Value of goods procured for electricity transmission
1,150
The value of the goods purchased and the network losses which Alliander incurs when facilitating electricity transmission.
i Contribution of electricity transmission to consumer well-being
2,338
The contribution of electricity transmission to the social value which electricity represents for consumer well-being (use of household appliances, electric transport, lighting). The occurrence of outages diminishes this positive impact.

Intellectual capital

i Development of new market models and open platforms
New market models and open platforms have a value in terms of their positive impact on the economy and the environment.
i Technological development
New technologies which can be employed in the future have a value in terms of their positive impact on the economy and the environment.
i Change in value of intangible assets
Changes in intangible assets, consisting of goodwill and licences
No impact quantified
i Value of data collection for market facilitation
1.2
Increase in data availability, for example consumption patterns at the district level, which Alliander can use to assist market players in providing their services and products.

Natural capital

i Environmental damage due to waste
0.1
This impact depends on the waste’s destination. The majority, including the metals, is recycled. Part of it is incinerated, including many types of dangerous waste, and a small part, such as bitumen, is dumped. The Reuse programme is an example of how to reduce this impact.
i Environmental damage through procurement of materials
36
This impact reveals the ecological damage in the production chain last year for the four largest asset groups: cables, meters, gas pipes and transformers.
i Climate change due to CO2 emissions
230
CO2 emissions contribute to climate change. Alliander facilitates energy transmission to the end user from sources that are not always sustainable. The energy transition limits this negative impact. In addition, Alliander uses energy for housing, mobility and network losses and leakages. The target is to achieve climate-neutral operations in 2023. Not only have emissions been reduced, they have also become greener.
i Further environmental impact
In the case of some activities, this type of impact is calculated and recorded separately (for example, the ecological damage caused by procurement of materials). This item represents the part that has not been quantified, such as the production chain of used natural gas for heating or the impact of the construction and maintenance of substations on biodiversity.
No impact quantified

Social capital

i Contribution to social cohesion in the Netherlands
Activities to support, among other things, citizens’ initiatives in favour of decentralised energy generation or collective energy procurement can have an impact on social cohesion at a regional or national level.
i Contribution to social cohesion in communities
Investments in community initiatives can have an impact on social cohesion at a neighbourhood level, for example, as a result of activities by the Alliander Foundation and activities in neighbourhood projects in the field of energy and sustainability.
i Contribution to improved institutions and regulations
Contribution by Alliander directed at adjusting regulations to optimise the impact of energy distribution.
i Digital security: privacy breaches
The safety risks inherent to the management of personal data by Alliander and the energy suppliers.
i Value of change in reputation of Alliander
5
Changes in stakeholders’ perceptions can influence Alliander’s reputation both positively and negatively.

Human capital

i Safety incidents in immediate environment
Accidents related to electricity and gas transmission lead to a loss of years of healthy life. Alliander has insufficient reliable information to be able to quantify this impact.
i Economic value of labour
The time and attention that Alliander employees devote to their work cannot be invested elsewhere.
i Employee development
93
The value of the development of knowledge and skills among Alliander employees.
i Work-related sickness absence and employee accidents (safety)
0.8
Work accidents and work-related illnesses are linked to a loss of years of healthy life. Well-being acquires a statistical value, with partial loss of well-being if an employee is physically or mentally unwell.
i Well-being effects of having work
80
The value work provides by improving personal well-being as a result of social contacts, greater trust in society, self-esteem and fitness for work. The greater the satisfaction of an Alliander employee, the greater the impact.

Capital value decrease

Capital value increase

Quantified in € millions
Not quantified in € millions

Financial capital: investing in future-proof networks

Relationship with SDGs

Ensuring universal access to affordable, reliable energy (SDG 7) is explicitly mentioned in our mission statement. Our impact is reflected by the investments we make to meet the demand for capacity, feed-in and renewable energy transmitted through our networks. We aim to keep the social cost of accessing energy as low as possible. Our impact on SDG 9 is reflected in our activities to build a future-proof energy infrastructure and our use of innovative techniques, such as in hydrogen projects. We invest in local and regional energy networks that support the necessary shifts in supply and demand patterns.

Impact

Financial capital is a source of broad value creation. An increase in the number of employees and the pay rise under the collective labour agreement have increased the impact of salary payments by €123 million. In addition, suppliers receive payments for goods, services and operating assets; this generates work and income for other parties. Due to increasing investments and significantly higher procurement costs, the payments to suppliers have risen to €2.9 billion in 2023, a 27% increase. On the other hand, financial contributions from customers and from loans have increased. We use a significant part of our financial capital to contribute to the energy transition, the regional economy and employment.

Manufactured capital: shift to electricity

Relationship with the SDGs

Achieving timely access to energy for our customers is our daily priority. This contributes directly to the level of well-being and prosperity that customers experience (SDG 7.1). Energy distribution and transmission are the core of our manufactured capital and reflect the value that energy has for our customers. We are working on increasing the share of renewable energy in accordance with SDG 7.2 and contributing to SDG 9.1: develop quality, reliable, sustainable and resilient infrastructure. In doing so, we support economic development and well-being, with a strong emphasis on affordable and open access to energy for all.

Impact on consumers

Our main impact on manufactured capital is the well-being experienced by consumers through the availability of energy. We analyse this impact by looking at the distributed volume, the price and the willingness of households to pay for energy. According to economic theories, the value of a product to a customer is at least equal to the price paid but can be even greater if the customer’s willingness to pay is higher than the price.

The total volume of gas distributed to consumers dropped by 10% compared to 2022. This is in line with the major pressure on the energy supply chain, the geopolitical situation regarding energy and relatively mild weather during the winter of 2023. Alliander’s share of gas distribution in the energy supply chain dropped this year. All in all, the contribution of our gas transmission to the well-being of consumers was down 5.2%, from an adjusted €2,503 million in 2022 to €2,373 million in 2023. Considering the drop in distributed volumes, we can conclude that consumers have adapted their usage to the price developments. The perceived well-being value per distributed cubic metre of gas has risen for customers.

The perceived well-being due to the distribution of heating systems dropped to €2.5 million in 2023 (2022: €3.8 million adjusted). This is due to the lower financial income from a heat connection for customers in comparison with a gas connection. The total number of heat connections managed by Alliander increased.

The overall volume of electricity distributed to consumers rose by 19%, partly due to the electrification of our energy usage. The well-being customers perceive due to the transmission of electricity also increased by 14%, from €2,001 million in 2022 to €2,338 million in 2023. The impact of feeding in solar energy to the grid for consumers was €27 million in 2023, an increase of 15%. The income generated by individual connections from feed-in dropped slightly because of the higher primary purchasing costs for solar panels.

Impact of business connections

The total energy transmission value for business connections rose from €489 million to €715 million due to an increased number of electricity connections and a drop in the number of gas connections. Major investments in energy networks resulted in higher total procurement costs for goods: €1.2 billion for electricity networks, an increase of €246 million, and €780 million for gas networks, an increase of €21 million.

Natural capital: slight increase in ecological pressure

Relationship with the SDGs

Alliander applies SDGs 7, 12 and 13 to quantify the negative impact of its operations on natural capital in the form of raw materials usage, waste, effects on biodiversity, air, water and soil quality, and effects on climate change. We contribute to the international emissions reduction targets in order to remain within the scenario of limiting global warming to 1.5 degrees. We do not yet measure the quantitative impact of measures designed to achieve climate adaptation at the level of our assets (SDG 13).

Impact on climate costs

In 2023, Alliander rendered its scope 1 and 2 emissions and its scope 3 mobility fully sustainable, making the company climate-neutral on balance for these aspects. This is in line with our target for 2023. This impact excludes emissions generated by the transmission of gas and electricity at customers and the supply of goods and services by supply chain partners. By making its own emissions sustainable, Alliander achieved a net positive impact of €415,000 in 2023.

The impact of carbon emissions on climate change increased by 1.7%, from an adjusted €226 million in 2022 to €230 million in 2023. The significant growth in electricity transmission increased the volume of network losses and supply chain emissions. However, reduced gas transmission and the cleaner Dutch energy mix for electricity generation slowed down this increase. Compared to 2022, there was a decrease in the carbon emission coefficient for Dutch electricity from 0.427kg CO2/kWh to 0.328kg CO2/kWh.

Impact of greenhouse gases (€ million)

Impact on eco-costs

The net negative impact of purchased materials was lower than in 2022. This is mainly due to the fact that we purchased fewer materials, cables in particular, as we still had sufficient inventories. Circular procurement reduced the eco-costs compared to 2022. In the years to come, however, we are expecting a rapidly growing work package, which will boost the need for materials. This puts the availability of materials under pressure and, as a result, the associated eco-costs. We are attempting to curtail the rising eco-costs by focusing on circularity, reuse and smart procurement of materials.
We recycle or reuse about 82% of the weight of our waste. However, the rising eco-costs of incinerating part of the other waste flows have increased the impact for the same volume. The total impact of waste in eco-costs was limited: €0.13 million.

Impact of recycling (€ million)

Human capital: above-average growth

Relationship with the SDGs

Our impact on decent work and economic growth (SDG 8) is reflected in our positive contribution to employment, the well-being of employees in the Netherlands and our efforts to positively influence working conditions and workers’ rights in the Netherlands and elsewhere. Our procurement and tendering policy focuses on encouraging suppliers to apply corporate social responsibility. Anyone who carries out work on our behalf must comply with the same safety standards that we use ourselves. In our labour market policy, we pay special attention to specific groups. As a result, we contribute to SDG 8.5: achieving full and productive employment and decent work for all women and men, including young people and people with poor employment prospects, based on the principle of receiving equal pay for work of equal value.

The major challenges of the energy transition are creating lots of job opportunities. Our own number of employees increased by almost 500 in 2023. We recruited 10% more people with poor employment prospects and sickness absence numbers also dropped. On the other hand, the impact of accidents did increase.

Impact of well-being effects of having work

The impact of well-being effects of having work increased for employees due to inflation and the increased number of employees. The percentage of employees who indicated their satisfaction with Alliander as an employer in the Alliander Barometer dropped slightly. Overall, the impact increased from €71.7 million in 2022 to €80.3 million in 2023.

Impact of work-related sickness absence and employee accidents

Long-term work-related sickness absence or safety incidents have a dampening effect on the positive value of being in work. The ‘work-related sickness absence and employee accidents’ impact indicator increased from €700,000 to €830,000. This higher negative impact was mainly caused by an increase in work-related sickness absence due to physical complaints. We suspect that this increase can be attributed largely to better and more extensive registration and classification of these complaints. The number of absence days as a percentage of the total number of employees decreased. 

Impact of employee development

We measured the impact of employee development for the first time in 2023. We believe this is important, as it allows us to map out the dynamics between work quality and staff shortages. The growth experienced by employees in their work is a distinguishing factor for an organisation. A total value of €92.6 million was created through the skills and knowledge gained by employees last year. Among other things, this development is reflected in career advancement. We use this career advancement as the basis for the impact calculation. This method is limited by the fact that the development of employees in their current jobs is not measured, so the calculated result is somewhat conservative. Employees who advance in their careers are generally more productive. That is a positive thing for Alliander. The percentage of employees who continue to work for Alliander is important when calculating the impact development of employees. Staff turnover at Alliander is 9% per year, which is relatively low compared to the Dutch average of 17%. This produces a positive impact result for Alliander.

Social capital: exploratory study for broader measurement

Relationship with the SDGs

Our social impact is expressed in our connecting role. In the Regional Energy Strategies, we are the connecting factor between government bodies, energy companies and community initiatives. Within the framework of a collaborative planning process, we focus on meeting energy infrastructure needs and creating sustainable cities and communities (SDG 11). Participation and connectedness are important values in an open, inclusive and democratic society and nurture the trust that individuals have in each other and in institutions. Alliander attaches great importance to participation and inclusion in the energy transition. 

Impact

We explored our social capital further in 2023 by conducting a qualitative pilot on the impact of our disconnection policy. The previous exploration revealed that we can profile ourselves more emphatically and focus more on connection and participation in our working methods, for example, through direct interaction at district level and by making better use of the practical knowledge of supply chain partners. The results of a pilot together with the municipality of Amsterdam are included in the box below.

How stakeholders perceive and value our performance is part of our social capital. We have been measuring the value of reputational change in our model for a few years now. This value indicates how the development of our reputation compares to similar companies. A good reputation is beneficial for collaboration, employee recruitment and customer satisfaction. The measurement for 2023 shows a drop in the calculated value. The average brand value in the measurement for all of the largest European utility companies has dropped. This largely explains the drop in Liander’s brand value. In addition, we see that our reputation among large business customers and their support for Liander, used as input for this impact indicator, has dropped and is under pressure. This drop is mainly caused by the changing views of this target group regarding Liander due to the network congestion issues and long connection times. Trust has deteriorated among small business customers, but Liander still has a good reputation among this group and a reasonable amount of support. Consumers have a lot of confidence in the organisation and are the most willing to support Liander. The impact for 2023 was €5 million (2022: €12 million).

Case study: preventing disconnections together

Visualising social impact

Forced disconnection of energy has serious consequences for households. Being in arrears with payments means that the energy supplier is required to tell the customer that their contract will be terminated and to send a supply termination notification to the municipality in question. If no payment scheme is agreed immediately afterwards, the network operator will receive a supply termination notification, after which they are legally required to start the disconnection process. The fact that the municipality does not always receive an early warning or supply termination notification, or does not receive one on time, restricts opportunities for timely debt assistance and preventing disconnection. The growing number of customers with problematic payment arrears is creating a risk of increasing social costs for assistance and care, and increasing inequality and stress in society.

Study question

In 2023, network operator Liander conducted a pilot with the municipality of Amsterdam, in which it actively reported addresses that were at risk of disconnection because of payment issues. The regular disconnection period was also extended by four weeks. This gave the municipality the opportunity to provide help in the critical phase. In connection with the pilot, an impact study was launched in which the effects of this working method, where the network operator shares address details with the municipality and postpones disconnection, are compared with the regular process. The study was described in qualitative manner.

Results

The signal Liander sent to the municipality during the pilot appeared to be loud and clear, which enabled it to provide targeted and effective assistance. This gave the municipality a strong case, resulting in their assistance reaching more residents. The pilot was primarily aimed at preventing disconnections: the impact of the pilot mainly appeared to be preventing financial stress by making debt assistance more effective. The changes to Liander’s disconnection process resulted in fewer disconnections during the pilot. Liander played a key identifying role in this and acted as a bridge between the customer and the municipality for debt assistance. The improved reach of the municipal (debt) assistance meant that arrangements were made sooner and disconnection was prevented at 130 households. A total of 250 cases were forwarded to the municipality, 34% of which had not been previously identified by the municipality.

To achieve the pilot’s goal, the network operator made arrangements about the privacy of those involved. Regulations on privacy protection contain certain guarantees for customers, and rightly so, but they also impede rapid identification by network operators if customers are at risk of disconnection. Apart from helping households in Amsterdam, the results of the pilot have contributed to changes in national legislation. Energy suppliers are now required to submit early reports of customers who are at risk of disconnection. The network operator does not share any personal data with third parties, but Liander does inform residents early by sending them a disconnection letter, after which they need to take action themselves. Further to the pilot, Liander has set up an energy poverty team to make further arrangements with municipalities and welfare organisations, see also the section Our network: high supply reliability at a low cost.

The case study provides insights into the potential costs and benefits of the broad application of the network operator identifying and postponing disconnections. These were not quantified, but form a good starting point for more extensively measuring Alliander’s social impact on people and society.

Intellectual capital: value of market-facilitating data

Relationship with the SDGs

The digitisation of power grids is essential for the energy transition. New models for business and markets and the use of renewable energy lead to knowledge and data on these developments. This knowledge and data is intellectual capital that can make a positive contribution to issues around the energy transition, raw materials and implementation. Transparency, innovation and collaboration are key concepts for denoting intellectual capital. We associate the indicators for intellectual capital with industry, innovation and infrastructure (SDG 9). They are reflected in our activities to build a future-proof energy infrastructure and our use of innovative techniques, such as in hydrogen projects. Participation in international initiatives aimed at knowledge sharing and technology development and application is associated with SDG 7.4.

Impact

The impact of data rose to €1.2 million, an increase of about one third compared to 2022 (€0.9 million adjusted in 2022). On the one hand, this is caused by the higher number of times open and custom data was referenced and downloaded. One key change here is that, since the summer holidays, customers have been able to submit their custom data requests through the Partners in Energy network operator platform in which Liander, Enexis, Stedin, Coteq, Westland Infra and Rendo participate. This allows them to retrieve their data from several network operators at once. On the other hand, the increase is partly caused by the high rate of inflation in 2022.

Impact of data (€ million)

Case study: green electrons

The value of transparency regarding electrons in the grid.

Balancing electricity supply and demand is a key pillar of the energy supply system and it is done on a national scale. Electricity from fossil sources (e.g. from natural gas, coal and oil) and energy from non-fossil sources (wind and solar) is fed into the grid in the form of electrons. They move through the energy system until the moment they are used. The ratio between fossil and non-fossil energy is determined afterwards each year. Network operator Liander has information that could help to make electricity supply and demand more transparent in terms of its origin, time and place, and has the technology need to make this happen.

Study question

Mapping out how green and grey electrons are distributed over the grid at each point in time and in each location will allow demand for electricity to be adjusted accordingly. Liander conducted a qualitative study to investigate the technical feasibility of transparency regarding the origins of electrons. We investigated which role Liander is willing and able to play in this process, what kind of data can be supplied, how potential users would use this and what kind of social value can be created in this way.

Results

Liander can use the available data to provide transparency regarding the carbon footprint of green and grey electricity distribution. Targeted transparency on the time and location of electricity supply and demand supports the management and choices geared towards greening and can help reduce local network congestion.

Low-voltage data in particular may help improve CO2 models. This may provide a valuable addition to existing models for carbon emissions per kilowatt hour. The CO2 monitor, for example, shows the average carbon emissions in the Netherlands. Having more (low-)voltage information will allow these models to be improved, facilitating the provision of information at connection level, for example. The results of the internal consultation were used at the start of the study to conclude that access to data for market facilitation would be the most valuable role for Liander. Things like the purposes for which resources should be used were taken into account here, for example, the question from a number of large business customers about publicly available solutions. The impact study shows that data gathering and the development and application of the information in the model also provides added value if it is just used internally by Liander, without exchanging any data with third parties.

Liander can use the data to map out congested areas more accurately. This has a high potential value by enabling faster connection of new customers and sustainable power generation. Detailed voltage information can be provided on a local level and the electricity network can be set up more efficiently. The use of voltage information by parties like business customers and energy suppliers is expected to have positive social effects. The highest potential impact is expected to come from a verifiable green power model for large business customers who want to minimise their climate impact. It also creates the opportunity to entice market parties to implement congestion-reducing measures and improve their CO2 data monitoring. Parties acting as energy storage initiators can draw up a more accurate business case for batteries and energy suppliers can provide guaranteed ‘CO2-free’ contracts.

Case study: opportunities for biodiversity

Alliander wants to contribute to restoring biodiversity

Since 1970, worldwide populations of species have decreased by an average of 69%. Commitment is increasing on a global level to resolve the biodiversity crisis. The Kunming-Montreal Global Biodiversity Framework was signed in 2022 by 188 countries, including the Netherlands. The aim of this framework is to reverse loss of biodiversity before 2030. Alliander would like to play a key role in this. New standards and regulations, like the EU taxonomy and CSRD, are challenging us to develop sustainable solutions. Only a small part of our considerations currently address biodiversity.

In 2023, we made an initial assessment of Liander’s impact on biodiversity. A governance model was drawn up for biodiversity, which can be used to obtain an overview of where the organisation can achieve a positive impact in its operations and reduce its negative impact.

The impact of biodiversity loss is considerable, especially in the supply chain

Improving biodiversity requires certain conditions, such as natural land use and having clean air and water. Liander itself and the entire supply chain affect these conditions. Together with four other infrastructure parties (Stedin, Gasunie, the Port of Rotterdam and Vitens), Liander participated in a programme to measure this negative impact. We mapped out Alliander’s contribution to climate change, air pollution, water pollution and land use. Direct exploitation and invasive species were left out of scope here, as they are immaterial to the network operator.

Liander’s impact on biodiversity is caused by its own operations, through suppliers and through the energy’s end users. The impact of Liander’s own operations is mainly caused by the use of its own sites. Suppliers and the associated supply chains create a negative impact during their production processes, for example. End users emit CO2 and particulate matter when they consume gas. 

The total negative impact of the products and services Liander purchases and the land it uses came in at a rounded €76 million based on annual data for 2022. The biggest impact Liander has on biodiversity loss occurs in supply chains, especially due to the procurement of materials: a negative impact of €75 million in the supply chain. In order to reduce this impact, Liander could focus on nature-inclusive procurement. The network operator is already doing so to a limited extent, for example, by applying award criteria related to sustainability in the procurement process.

The negative impact measured for Liander’s own land use on biodiversity loss came in at a rounded €1.1 million. Loss of biodiversity occurs because land with a high natural value is converted into business parks and green areas. Despite the fact that our impact is much smaller in this regard than through the supply chain, Liander can have a direct positive impact on this with things like green site development and greener site management. This also serves as an example for the surrounding area, for third parties and for suppliers who have to deal with strict biodiversity requirements.

Climate change is a primary driver for loss of biodiversity. The case study shows that carbon emissions from fossil energy sources contribute greatly to the impact on biodiversity in Alliander’s supply chain. The total impact of climate-related emissions is calculated and reported separately in our impact model, creating a partial overlap between climate costs in the impact model and the costs of biodiversity loss in this case study. In the case study, the climate-related impact is one of the factors for the natural conditions for biodiversity. The impact model considers the direct impact and social costs of climate change resulting from energy distribution.

The impact of these emissions is already calculated in our impact model and represents a significant natural impact caused by Liander. This creates an overlap between the climate costs and costs of biodiversity loss in this case study and the impact model, with the difference being that this case study only considers the impact on nature, while the impact model also considers the direct impact on people due to climate change.

Getting started: the biodiversity governance model

Last year we developed a biodiversity governance model to inform the organisation of how they can make a more positive contribution to biodiversity. This makes it possible to drive biodiversity improvements.

The governance model includes examples of measures that can be used to improve biodiversity. Examples are applying nature-inclusive conditions when purchasing components and using the ‘Meetlat Biodiversiteit’ (biodiversity benchmark) for investments and collaboration with other infrastructure companies.