Other non-financial information

CO₂ and energy

This section provides a detailed review of Alliander’s energy consumption and the CO₂-related impacts of Alliander. The methodology and the conversion factors used are also described.

Energy use in Alliander’s operations

Alliander uses 2012 as a reference year for comparison of energy and CO₂ data. The reason for this is that 2012 is the year in which the targets for CO₂-related emissions were formulated. In that year, emissions totalled 761 kilotons of CO_2-eq without a greening policy. Gross carbon emissions in 2023 amounted to 425 kilotons of CO_2-eq (44% less than in 2012). Including greening, the net carbon emissions from our own operations were 0 kton CO_2eq (scope 1 + 2 and travel in scope 3). At least 10% of the electricity consumption of our buildings is fed by renewable electricity we generate ourselves on site. The remaining electricity consumption for buildings is procured. The electricity label for this gives 398g of CO₂/kWh. The entire CO₂ volume is compensated by Guarantees of Origin for wind energy produced in the Netherlands. Furthermore, the Duiven offices are practically energy-neutral (at least an A label) All of Alliander’s office buildings meet A, B or C label criteria, in accordance with the Building Structures (Living Environment) Decree (Besluit bouwwerken leefomgeving, Bbl). Any remaining surplus is fed back into the grid.

• 1Source for calorific values and conversion factors: ‘calorische waarde’ (joostdevree.nl).
• 2The value of the electricity feed-in to the grid is 3.2 GJ.

CO₂ emissions and carbon footprint for operations

A sector-wide uniform scope has been used for the purposes of the section entitled ‘Making the energy supply and our organisation sustainable’. This differs slightly from the Greenhouse Gas (GHG) Protocol. In terms of classification and the design of the emission calculations, we follow the Greenhouse Protocol The figures and classification in CO₂ equivalents in accordance with the GHG Protocol are presented in the following table.

• 1CO_2eq: refers to CO₂, CH₄ and SF₆. The greenhouse gases from company operations have been consolidated on the basis of the consolidation policy used in this annual report.
• 2Emissions in 2022 in scopes 1 and 2 were restated according to the most recent emission factors (2022).

Most of the figures included in the tables and graphs in this report are taken from the underlying source systems. Some figures, however, are derived from third-party records and/or reports. 

Assumptions and estimates are used for calculating the carbon footprint and the energy usage. Since 2016, the CO₂ emissions factor for the grid losses has been calculated on the basis of the energy purchased from our suppliers to cover grid losses. The 2022 electricity labels have been used for the 2023 annual report. This gives a figure for the CO₂ coefficient of 0.20103kg CO₂/kWh. Of the gross carbon emissions, 47% is attributed to network losses in the electricity infrastructure. As of 2020, network operators are obliged to purchase the natural gas leakage losses over a larger part of the supply chain. This means that it now represents a much higher proportion of our carbon footprint. Gas leakage losses accounted for 26% of the gross carbon emissions in 2023, compared with 11% in 2019. Gas leakage losses are based on consumption by customers without an energy contract, improper use or theft of gas from the network and the number of kilometres of gas mains in Alliander’s gas network. Cast-iron gas mains have higher leakage losses (322.5m³/km) than the regular PE pipes (55.3m³/km) and therefore higher emissions. The CO₂ equivalent is calculated using a factor of 28 (methane).

Supply chain emissions

We reported procurement-related supply chain emissions in 2023 as part of scope 3. These are emissions which occur at our suppliers when making, transporting and delivering services and products. Calculations take place on the basis of key emission figures for each sector multiplied by Alliander’s expenditure in the sector. These emissions are outside the scope of our climate objectives and are not a part of the intensity indicator. To calculate emissions from materials procured, we use standardised key indicators, such as eco-costs in the Idemat app.

• 1Emission figures for 2022, 2021, 2020 and 2019 have been recalculated according to the most recent emission factors.

Our carbon footprint per million euros in revenue has been greatly reduced in recent years through targeted measures.

Transport

Alliander’s greatest impact relates to energy distributing to end users. The quantities are as follows:

• 1Following implementation of the programme allocation 2.0 tranche 2 in April 2023, the electricity feed-in from small consumers is now more accurately calculated, resulting in increased transmission and distribution volumes.

The calculated network losses are the end result of the allocation and reconciliation process, where the difference between all volumes entering the Liander network and all volumes consumed by end users is calculated. The main causes of network losses are losses that occur during transmission (through resistance or other factors), customers who consume electricity without an energy contract, and improper use or theft of electricity from the grid. The total grid losses are finalised using a ‘reconciliation’ process. Meter readings are often estimated and only read at a later time, meaning there is delay in settlement and allocation and it takes a few years for data to be finalised.

To arrive at the energy intensity ratio, Alliander divides its own energy usage in gigajoules (GJ), scope 1 and 2, by its net revenue. This ratio takes into account the gas and electricity consumption of buildings and the fuel consumption of the vehicle fleet. The development of the ratio over a series of years shows the decrease in Alliander’s own energy usage per million euros of net revenue.

• *This information is not available by energy type. As far as Alliander is concerned, a view is obtained based on energy type for Scope 1 use; the distinction according to energy type for Alliander’s own use is of a far smaller magnitude and impact and is therefore immaterial.

Decarbonisation and offsetting CO_2eq

Alliander decarbonises its electricity network losses through the purchase of Guarantees of Origin linked to Dutch wind capacity. In doing so, we contribute directly to direct investments in wind energy. We offset gas leakage losses by purchasing Gold Standard Verified Emission Reductions Certificates, VERs, and we offset other emissions from our own operations using the available capacity under the Guarantees of Origin and VERs that we have purchased.

Green gas

The total feed-in of green gas in the area supplied by Alliander during 2023 was 75 million m³, a 14% increase compared with 2022. This involved connections to 27 green gas production facilities. The term ‘green gas’ refers to:

• Green gas: bio-SNG, biogas and landfill gas conditioned and upgraded to natural gas quality.

• Biogas: gas satisfying the definition of gas as a fuel but differing in that it is a product of a fermentation or digestion process. The two main components of biogas are CH₄ and CO₂.

• Landfill gas: gas satisfying the definition of gas as a fuel but differing in that it is a product of a landfill site. The composition is similar to that of biogas.

• Bio-SNG: SNG – substitute/synthetic natural gas – produced exclusively from biomass.

Waste from operations

Alliander is actively working on waste prevention, reuse, separation and recycling of waste materials. Prevention takes the form of actively eliminating disposable packaging and single-use packaging, among other things. Whenever possible, materials are reused and, if necessary, reconditioned. Through reuse, we extend the useful life of valuable materials. Alliander separates its waste into the legally defined categories. Waste collectors have been set up at all large locations for this purpose. Waste materials generated at large projects outside our sites are generally collected directly by approved hauliers or waste collection companies in accordance with internal requirements. By far the largest volume by weight is metal or waste that contains metal, such as cables, transformers and other infrastructure-related waste materials. Waste materials are segregated by LoW code and delivered to approved waste processing entities. The Additional Data table on page 262 includes a waste materials summary.

• 1This refers to operational waste (transformer oil and other hazardous waste is not included in this) and excludes waste generated by Alliander Facilities and Kenter (office and catering waste). As a result, the total volume of waste differs from the total volume reported on page 262.

Crisis organisation

In the case of major outages and emergencies, an internal crisis organisation is mobilised. Within this organisation, staff members of various departments work on-call shifts. Depending on the nature and scale of the incident, once the crisis is over,  a case and/or investigation team is set up to assist and ensure the completion of any internal and/or external investigations. All major incidents are evaluated to identify and implement possible improvements.

CSR Governance

Alliander’s management approach focuses on long-term value creation, based on an integrated control model. This management model requires, on the one hand, a good social awareness antenna and direct connection with stakeholders for consultation and constructive participation in our strategy and choices. On the other hand it requires an appropriate and more effective mirroring of social developments in our strategy, decision-making and implementation. Our CSR Governance therefore consists of several components, most of which are now operational:

Corporate Social Responsibility (CSR) is integral to all organisational units and is included in the Planning & Control cycle. All organisational units perform an analysis of the qualitative and quantitative impacts that their operations have on society. Responsibilities for internal coordination are assigned as follows:

• The Management Board has overall responsibility for the economic, ecological and social impact of Alliander. The Management Board and the Supervisory Board consult with stakeholder representatives on a regular basis. Their presence or representation at regular and ad hoc meetings ensures an active awareness of developments and views regarding strategic topics. See the section of the report covering Interaction with stakeholders for the various social issues that have been discussed.

• The Directors’ Consultation on CSR ensures good strategic coordination. Its members keep track of the social goals, advise on paths to realise ambitions and ensure proper assignment of responsibilities between departments. The preparations for the Directors’ Consultation on CSR were made in 2023 (Directors’ Consultation on Broad Prosperity) and the consultation will start work in 2024.

• The CSR PO (Product Owners Consultation) group ensures operational coordination among all levels. The comprehensive nature of CSR is such that these coordination activities are growing in importance. New directives and guidelines originating from national authorities and international governments are so wide-ranging that they generally affect multiple departments. The CSR PO consultation group is responsible for giving strategic advice to the Management Board. The CSR PO consultation group was prepared and tested in 2023 and will also start in 2024.

• Alliander’s CSR Team (4 FTEs) has Alliander’s corporate social responsibility under its direction. They are the link between the developments within and outside Alliander. The team is responsible for new policy, monitoring progress relative to ambitions and representing Alliander in external coalitions and expert groups.

Various consultation platforms have been created to keep in touch with and react to social developments and all the associated moral and ethical dilemmas:

• The Stakeholder Panel, with representatives from all our stakeholder groups, reflects each year on past developments, our challenges and the structure of the annual report and communicates that feedback to the Management Board. See also: Opinion of the Alliander stakeholder panel.

• The Future Leader Board consists of young professionals from within the organisation. They advise the Management Board on strategic themes, viewed from the perspective and interests of the youngest generation. See also: Being an attractive, inclusive employer with equal opportunities for all.

• The ‘ethical board’ reflects on the ethical and moral choices we must make, particularly those related to IT. This competency has become even more important in view of the emergence of AI. Preparations were made for the ‘ethical board’ in 2023 and it will start work in 2024.

Finally, our CSR Governance is linked to two platforms where we encourage multiple forms of social actions. The idea is to respond to a social need (voluntary work) and also engage and bind our colleagues:

• The Alliander Foundation, which supports voluntary work carried out by Alliander employees, either through the freely available hours offered to everyone or otherwise. See also: Being an attractive, inclusive employer with equal opportunities for all.

• The CSR Community, an open-door walk-in facility where Alliander colleagues can discuss relevant social developments. The CSR Community will be organised for the first time in 2024.

External assurance relating to the social part of the annual report

Alliander believes it important for its stakeholders to have formal assurance regarding the social part of the annual report. Alliander has received an affirmative assurance report for its 2023 annual report, affording reasonable assurance with respect to the most relevant part of the annual report, namely the principal management variables of the company (both financial and non-financial).

Alliander has also obtained reasonable assurance in relation to the material aspects of its reporting (materiality test). Additionally, Alliander has received an affirmative assurance report affording limited assurance covering the rest of the social part of the annual report. To guarantee the quality of the social information, Alliander adopts the Three Lines model. The various organisational units are required to submit social information, collected for example for the stakeholder dialogue, the materiality test and GRI activities. The organisational units form the first line of defence and are responsible for supplying reliable information. The business controllers of each organisational unit form the second line of defence and ensure that their organisational unit submits its information reliably and on time. The business controllers check such things as the basis of the information and the analysis of it by the business itself and prepares a report for the verification carried out by the internal audit department. The internal audit department forms the third line of defence, verifying the social information before it is reviewed by the external auditors. The external auditors form the final step in the verification process and provides the final assurance, as expressed in the report.

Additional information

• 1In 2023, only the paper waste generated in an office environment was accounted for under LoW code 20.01.01, resulting in a significantly lower tonnage than in 2022.