Climate change
Sub-topic 1: Climate change mitigation
Description of the topic
As a link in the energy supply chain, Alliander is responsible for the energy consumption and related carbon emissions of its networks, buildings and fleet, as well as for promoting sustainable, efficient energy generation and consumption.
Impact on people and the planet
Our activities produce climate-related emissions, within our operations and those of supply chain parties, and when the energy we distribute is used. Our overall CO2 footprint has a negative impact. Core processes account for 97% of our operations-related emissions. The climate impact of emissions attributable to customers and supply chain partners is many times greater. We have established goals and programmes to reduce our impact. We are implementing technical improvements in our networks, insulating our buildings and switching to electric vehicles wherever possible, and we turn network losses green through participation in Dutch wind farms.
Risks
Insufficient implementation of measures, insufficient pace in achieving goals in relation to all scopes of climate policy. Legislation leads to reputational and financial risks.
Opportunities
Pioneering role in the supply chain approach of infrastructure network operators, deployment of new instruments and cost advantage.
Impact on Alliander’s value
The impact of the climate and energy topic on Alliander is reflected in the costs we incur for mitigation measures, and the appreciation shown for our approach by providers of capital.
Relationship with Alliander’s impact model
Indicators for natural capital.
Stakeholder expectation
As a result of the changing climate, the sea level is rising and extreme weather events such as storms and longer periods of drought or precipitation are more common. Climate change is a global problem. Stakeholders expect an active climate policy aimed at achieving lower emissions throughout the energy supply chain. In addition to our own and energy network-related emissions, our role in the energy transition contributes to lower emissions through energy consumption.
Strategic pillars
Reducing demand for transmission capacity, Developing infrastructure for heating and sustainable gases, Future-proof foundation.
Our long-term objective
We contribute to the international emissions reduction targets that are designed to limit global warming to 1.5 degrees. We also contribute to SDG 7. We do not yet measure the impact of climate adaptation measures (SDG 13). We strive to reduce our carbon emissions: on balance, we want to be climate-neutral in terms of our operational emissions by 2023.
Alliander’s assessment and contribution
Alliander is undertaking various activities to reduce carbon emissions, and we are increasingly greening energy consumption and network and leakage losses through the purchase of Guarantee of Origin certificates for sustainable energy produced in the Netherlands. Together with the Dutch network operators, we are working on standardising the way we calculate our footprint. As a result, our CO2 related emissions have continued to drop in recent years. Our net footprint for scope 1 and 2 emissions after greening in 2023 is 0 kton of CO2eq (2022 has been recalculated: 29 ktons of CO2-eq).
Stakeholder information
Sub-topic 2: Climate change adaptation
Description of the topic
The frequency and severity of intense weather events have a noticeable effect on vital infrastructure. Drought, heat, storms and excessive rainfall lead to greater risks in relation to social continuity. The effects of climate change may undermine the robustness of the energy infrastructure. This can lead to disruptions affecting customers and society.
Impact on people and the planet
We examine the impact and consequences of changing conditions on energy networks, our buildings and the related effects in the energy chain. A disruption elsewhere can lead to problems in our networks. We use scenarios to analyse this.
Risks
Increase in high-impact situations due to extreme conditions that compromise stability and continuity and generate costs.
Opportunities
Accelerated adoption of innovative methods and technologies aimed at making the network more robust.
Impact on Alliander’s value
Climate scenarios reveal the degree and severity of the stresses that arise in our networks as a result of weather extremes. Besides the direct impact of weather extremes and the changing climate, we face indirect effects from the supply chains we are connected to (materials, energy and the like) and from social developments. Aligning approaches and plans with social and business partners can help reduce this impact.
Relationship with Alliander’s impact model
Indicators for financial capital and manufactured capital.
Stakeholder expectation
Stakeholders expect a proactive attitude to identify the impacts of climate change and take action. We report on this in accordance with the guidelines of the EU Taxonomy, TCFD and CSRD. This allows them to form a picture and come to a judgement.
Strategic pillars
Future-proof foundation.
Our long-term objective
Achievement of SBTi objectives for 2030 and 2040.
Alliander’s assessment and contribution
We keep track of and evaluate the risks in respect of the energy networks and stakeholders. We work together on climate adaptation measures with sector companies and local and national representatives, and participate in consultations on crisis management, some of which are compelled by law.
Stakeholder information
Sub-topic 3: Energy transition
Description of the topic
Private individuals and businesses are electrifying to meet their energy needs and increasingly generate their own energy. Large-scale renewable energy generation is part of national and regional agreements. This development necessitates continuous feed-in, input and transfer of energy in the network. Network operators like Alliander are tasked with constantly adapting their network capacity to meet society’s needs and keeping the network future-proof. The energy transition requires major investments in and optimal usage of our energy networks.
Impact on people and the planet
Feed-in and input of renewable energy has a positive effect on customer well-being. An increasing share of renewable energy leads to a reduction of carbon emissions in the supply chain. Investments in the energy networks create jobs at Alliander and its supply chain partners. Expansion of the networks potentially leads to an increased requirement for materials and increasing demand in product supply chains, which then increases pressure on scarce raw materials and on working conditions at our partners and companies in the supply chain, both in the Netherlands and internationally.
Risks
Not sufficiently responding in a timely manner to changing demand resulting in insufficient realisation in respect of customer needs and climate goals.
Opportunities
Innovating and modernising work practices and technologies, enhancing circular operations.
Impact on Alliander’s value
The energy transition is having a significant impact on Alliander’s organisation. The rapidly increasing demand for connections, expansion of the network capacity and diversity in the types of connection present major challenges in terms of labour capacity, financing, planning and execution.
Relationship with Alliander’s impact model
Indicators for manufactured capital and natural capital. See also the topic: Corporate social responsibility in the supply chain.
Stakeholder expectation
Alliander is in continuous contact with stakeholders regarding the energy transition. Customers rightly expect to be helped within the specified periods. Collaboration is crucial in managing the major challenges we face in the Netherlands. Alliander aspires to contribute to the design of the energy system by advising on socially desirable outcomes that are beneficial for the energy system in terms of feasibility, the social costs and the spatial impact. For example, we advise the parties involved in the Regional Energy Strategies (RES) on the optimal wind-solar ratio or on clustering initiatives to cope with excessively large-scale supply of and demand for energy. We also contribute our expertise when considering the most suitable heating system alternatives per area in the Transition Vision Statements for Heating. Through umbrella organisations and industry associations, we are in close contact with various groups in society.
Strategic pillars
Reducing demand for transmission capacity; Making better use of the network; Sharing data and developing new market services; Developing infrastructure for heating and sustainable gases.
Our long-term objective
Municipalities have drawn up plans setting out how they intend to wean each district off natural gas. Alliander contributes its knowledge and experience at the design stage so that suboptimal choices and unnecessary costs for society can be avoided. For locally generated power in our regions, Alliander wants to be able to respond positively to all new applications for a feed-in to the grid.
Alliander’s assessment and contribution
Alliander is responding actively to the changing energy landscape. We have innovations available, including cable pooling, curtailment and congestion management, and are scaling them up. We have been looking at smart energy solutions together with customers and partners and gaining experience. Our business activities related to heating, for example, help customers make responsible energy choices. Legal agreements and conditions need to be updated in certain respects to allow an effective response to the demands of the changing energy system. We are currently engaged in intensive discussions on this issue with our stakeholders and legislative bodies.