Climate change (E1)

Climate change affects Alliander’s value, due to its central position in the energy chain. Energy infrastructure is the crucial facilitating link in the energy chain for the transition to a sustainable, low-carbon energy supply. Our network management activities focus on distributing electricity, gas and heat, and on achieving sustainability in the energy system. Alliander has no business activities in relation to the fossil fuels coal and oil and does not invest in such activities.

Stakeholder expectation 

As a network operator, we have an indirect impact on climate through our energy systems. The energy we distribute is partly of fossil origin and this contributes to the climate impact on our stakeholders. They expect Alliander to have an active policy aimed at maximising our contribution to the energy transition goals and limiting climate-related emissions. Alliander is taking various steps to limit climate impact, in which we take account of stakeholder concerns. For instance, we collaborate with organisations and NGOs working for the transition to a sustainable energy supply. The starting point for this work is formed by the international climate objectives laid down in the 2015 Paris Climate Agreement and further specified in the Dutch Climate and Energy Agreement. Alliander is working on the implementation of this policy. 

With our role in the energy transition, we are also meeting the growing demand for energy infrastructure. The challenge is to meet customer demand while simultaneously maintaining our focus on ‘Reducing demand’, one of our strategic pillars. 

Our strategy is designed to offer customers timely solutions that fit within an affordable and reliable energy system, both today and in the future. By expanding, upgrading and modifying energy infrastructure, we make it possible to improve sustainability and development in the Netherlands and we work towards accelerating it. The strategy is based on intensive collaboration with the government, provincial authorities, municipalities, other network companies, industry, companies, citizens and other relevant parties that influence the energy infrastructure in the Netherlands.

Policy and approach 

We acknowledge the role we play in reducing potential negative effects, such as emissions from the extraction and production of materials and key components needed for a successful transition to renewable energy sources. To address potential negative effects in our value chain, we work together with suppliers to reduce emissions. This all forms part of our climate policy. 

To increase transparency and reduce climate-related emissions in our operations and the chains in which we are active, we align our work as closely as possible with the Science Based Targets initiative (SBTi). The SBTi takes the internationally agreed carbon reduction targets and provides a framework for translating them into CO₂e (CO₂ equivalent) emissions targets and timescales. Managing climate-related emissions is part of our strategy. We have explored the impact of climate change on our operating assets. An approach and the actual transition plan for managing and, where necessary, preventing and limiting this impact form part of our planning for 2025.

Responsibility for our carbon emissions is embedded in the daily management of our organisation and reported on every quarter. The carbon emissions KPI is part of the dashboard of the topmost management bodies. This KPI covers scope 1, 2 and 3 emissions of the company’s operations and is also reported on the basis of emissions after greening measures. Our emissions are calculated in tonnes of CO₂. We set CO₂ budgets for each scope. Alliander reports on all emissions categories that are material to its own operations and any part of the chain. 

Climate policy and its implementation are managed by the CO₂ steering group, which is attended by the portfolio holders of the business units with the most important climate issues. Discussion and management within the CO₂ steering group is based on the quarterly reports. Progress of policy, targets and actions is regularly evaluated and assessed. Targets may be adjusted following changes to material climate impacts, risks and opportunities.

Alliander regularly draws up an Energy Management Plan, which focuses on emissions in the organisation and the chain. This plan forms part of the CO₂ performance ladder. In the plan, we bundle and integrate the various actions, activities and measures aimed at reducing emissions at Alliander and parties in the chain. The operating targets for CO₂, network losses, buildings and mobility are agreed and adopted by the Alliander Management Board. 

Green finance is a part of Alliander’s policy. Alliander is able to issue green bonds and green Euro Commercial Paper (ECP). The company also has a committed Sustainability Linked credit facility. This financing structure is a financial incentive for Alliander to make sustainable investments and to conduct its business sustainably. For more details, please refer to the chapter on ‘A creditworthy company with a solid return’.  

Governance

Our commitment to the energy transition, climate mitigation and climate adaptation is an integral part of our strategy, targets and activities. The decision-making process follows our regular decision-making arrangements. We make separate arrangements for additional investments if they appear necessary. Progress on targets and agreements in the business plan is monitored and forms part of the monthly, quarterly and annual reports to the Management Board, where achievement and implementation are discussed with management and the process owners. 

The targets form part of the dashboard for the topmost management bodies. The approach is signed off annually by the Director of Corporate & Social Affairs. Owing to Dutch legislation for public companies such as Alliander, executive and management compensation within the organisation currently includes no financial or other incentives. 

About the transition plan 

A climate transition plan is a strategic plan that describes how Alliander will make the transition to a more sustainable energy system. It contains specific steps, targets and measures that we will take to both cut carbon emissions and adapt to the effects of climate change. This plan is essential to ensure that we take our share of the responsibility for a sustainable future. 
Alliander is working on an overall transition plan as referred to in the CSRD, in which we consolidate our planning for energy transition, climate mitigation and climate adaptation. This plan will be presented for board approval in 2025. In the paragraph on the EU taxonomy, we report the climate-related KPIs for capital and operating expenditure at corporate level. The KPIs form part of our overall business planning and accountability. The starting points for the transition plan are: 

• The transition plan will be aligned with the Alliander strategy. 

• The transition plan will be drawn up in line with the SBTi framework. The choice regarding possible SBTi accreditation will be made in 2025.

• The transition plan will be aligned with Alliander’s planning and budget cycle. Our financial planning will incorporate our targets, activities and measures into the budget over several years. 

• The budget cycle covers the availability of resources and labour, and contains plans for a feasible work package. 

• A summary of allocated financial resources will be adopted as part of the transition plan. More details of the plan and the financial resources (OpEx, CapEx) will be provided in the 2025 annual report.

Climate change mitigation

The carbon emissions of Alliander’s activities contribute to the overall emissions for the Netherlands. The vast majority of emissions are directly related to our core tasks of distributing and transforming electricity and gas. At the same time, these core tasks are a vital part of making the energy transition a reality and thus meeting the national climate targets, for instance by connecting sustainable energy sources to the energy networks and by facilitating the heating transition. 
We understand mitigation to mean taking measures to reduce greenhouse gas emissions, which means taking action to make the effects of climate change less severe. Examples include using green energy sources such as solar and wind, improving the energy efficiency of our networks and reducing energy usage. 

Impacts, risks and opportunities

• Negative impact – CO₂e emissions from fossil fuels used internally and in the value chain make a negative contribution to climate change.

• Potential negative impact – Network expansion and higher loads cause emissions and increase network losses, which makes a negative contribution to climate change.

• Risk – New climate mitigation regulations lead to higher costs. 

• Risk – Failure to achieve climate targets leads to a higher cost of capital and reputational damage.

• Opportunity – Using innovative techniques for sustainable energy supply leads to increased revenue or cost savings.

Policy and approach 

Trends 

As energy production gradually becomes more sustainable, the carbon emissions associated with our network losses fall. The European agreements on mobility (only zero emission vehicles to be sold as from 2035) are also bringing a wider range of electric (company) vehicles with increasing ranges to the market. National building regulations are also leading to an improvement in building-related emissions, so the emissions from the buildings we rent or manage will fall. We also note that firms and the industry are committing to international science-based climate targets aligned with the Paris Climate Agreement (SBTi). 

Policy

Alliander has a mitigation policy aimed at limiting the CO₂e under its immediate control and greening the remainder of its carbon emissions. This policy focuses on:  

• Scope 1: gas leak losses, owned and leased company vehicles. 

• Scope 2: electricity network losses and buildings.

• Scope 3: commuting.

To achieve our targets, we are investing in mitigation measures focused on energy savings and efficiency in our operations. We also invest in Guarantees of Origin and Gold Standard Carbon Credits to further reduce our carbon emissions. Greening our network losses and other emissions in this way keeps us climate neutral according to the climate policy Alliander has followed since 2013. In 2024, Alliander took the next step forward in its climate policy, and we are now focusing on reducing and managing climate-related emissions in accordance with the guidelines of the Science Based Targets initiative (SBTi). As a result, we will cease using the term ‘climate neutral' with effect from 2024. Our footprint for the year 2024 was as follows.  

Objectives

Alliander intends to bring its carbon emission targets into line with the 1.5 degree scenario under the 2015 Paris Climate Agreement. The target for 2024 was a maximum of 416 kt CO₂ emissions from operations. We offset all of these emissions through greening instruments. We are maintaining this target, including greening, for 2025. We have reduction targets by topic for each of the scopes.

The starting point for climate mitigation is that we direct our efforts towards enabling our energy network to facilitate the energy transition and the feed-in of sustainable energy, limiting the carbon emissions of our operations, and offsetting emissions.

We have adjusted the reporting of electricity network losses in our CO₂ reporting to conform with the CSRD guidelines. We perform calculations based on the actual CO₂ coefficients of our suppliers, i.e. using the market-based method, which directly incorporates the effects of purchased Guarantees of Origin (GOs). In the table in the next subsection (Climate-related emissions), we show the effects of our electricity network losses separately from the GO-based offset.    

In previous reports, we did not take account of the Greenhouse Gas Protocol guidelines for estimating market-based emissions and adjusted the emissions in order to reflect the actual market basis. This new approach offers a better insight into Alliander’s sustainability efforts, especially with regard to the purchasing of renewable electricity via GO certificates. 

The current targets reflect the division into scopes under the Greenhouse Gas Protocol and are in line with the CO₂ performance ladder. This means that we have targets for scope 1 and 2. For scope 3, we have only included a target for mobility within our own operations.

Alliander has adopted 2021 as the base year for reporting on its targets. Our total footprint for that year is complemented by an extended scope 3 analysis.

Science Based Targets initiative

Science Based Targets are business objectives that align with the 2015 Paris Agreement. We have now made preparations to adopt the methodology of the Science Based Targets initiative (SBTi), with verification scheduled for 2025. This means that we are actively aligning our current climate objectives with the 1.5 degree scenario:

• Our zero-emissions target, in accordance with the net zero objective under the Paris Climate Agreement, has been moved to 2050 at the latest (long term) with targets for 2030 (medium term) and the intervening years (short term).

• Our use of CO₂ certificates in various situations for greening purposes will be modified. 

The SBTi targets are being translated at a national and international level into maximum carbon emissions per industry and per company that remain possible if the global temperature rise is to be limited to a maximum of 1.5 degrees. For the final verification, we additionally need to define our targets for a wider group of scope 3 emissions categories. As well as preparing for the verification of our targets, we have begun drafting a climate transition plan. 

Decarbonisation levers and reduction pathway

Decarbonisation levers are the specific actions and resources we employ to bring down our carbon emissions. Such levers help us to achieve our climate objectives and make a positive contribution to the energy transition. Alliander’s decarbonisation levers provide an insight into the emissions reduction pathway that was followed from 2021 to 2024. We are aiming for a combination of measures and instruments that focus on reducing and limiting CO_2--related emissions. In line with our previous policy, we have been offsetting the entire carbon footprint of our scope 1 and 2 emissions and our own mobility in scope 3 since 2023. 

Based on our policy, we offset the remaining emissions in our carbon footprint through our greening policy in 2024.  

Use of renewable energy

The biggest lever is purchasing GOs. Since 2016, we have gradually greened an ever larger proportion of our electricity network losses. In 2021, this proportion was 53%. Since 2023, total electricity network losses (scope 2) have been greened through purchases of Dutch GOs to help foster the Dutch energy transition. The electricity for our buildings and operations is either obtained from renewable energy sources or offset through GOs.

Limiting gas leak losses

We closely monitor leakage losses in our gas distribution network and limit them through repair and replacement measures. We offset emissions in accordance with our offset policy as referred to above.

Alternative fuel generators

During work and in the event of power cuts, we use generators in a targeted manner to maintain the electricity supply. Since 2023, our policy has been to replace diesel fuel with HVO (hydrotreated vegetable oil). This reduces carbon emissions.

Clean mobility

Our employees travel long distances every day in order to do their work. A mobility policy is in place that focuses on reducing the fossil fuel emissions from our own vehicles, leased vehicles and commuting. We are reducing our footprint further by going all-electric as standard and by using alternative modes of transport and mobility management. 

Energy efficient buildings and sites

For our buildings and sites, we are committed to sustainable generation, alternative heat sources, insulation and energy certification. Through this we aim to improve efficiency despite an increase in our workforce.

Reducing SF₆ usage

SF₆ equipment is inspected, our emissions are reported and leaks are sealed. This has been bringing emissions down for a number of years. In 2024, however, an increase was noted. As of 2024, new legal rules are in force for SF₆, for which we are making preparations. The use of new SF₆ will be prohibited from 2035.

Climate-related emissions in 2024

Emissions trend and reduction in carbon emissions

Alliander has adopted 2021 as the base year for energy and carbon emissions data for scope 1, scope 2 (market-based) and for scope 3 regarding our own mobility. Total emissions in that year came to 523 kt CO₂, before GO offsetting. Total carbon emissions in 2024 were 446 kt CO₂ (9.3% less than in 2021). The difference relative to 2021 is 46 kt. 

Alliander has no legal emissions-trading obligations and is not covered by the ETS provisions.

Market-based scope 2 emissions include the effect of using renewable energy through the purchasing of Guarantees of Origin (GOs). These are used to bring carbon emissions from electricity consumption down to 0 tonnes CO₂ equivalent. The quantity of CO₂ equivalent offset using GOs was 161,392 tonnes, 242,417 tonnes and 268,683 tonnes in 2021, 2023 and 2024 respectively. Our target for 2025 is to green 270,779 tonnes of our electricity consumption using GOs. 

Total greenhouse gas emissions under the location-based method. Total greenhouse gas emissions under the location-based method are calculated using the average emission factors for the national electricity grid. This means that carbon emissions per kWh consumed are multiplied by the average emission factor for the Dutch energy mix, disregarding any individual contracts for renewable energy such as Guarantees of Origin (GOs). 

The gross scope 1 and 2 carbon emissions disclosed for 2023 were recalculated and set at 419 kt. This is 7 kt lower than the figure of 425 kt originally reported in the 2023 annual report. The adjustment is the result of applying updated emission factors and a revised determination of the total network losses for electricity and gas in 2023.

Categories C8, C9, C10, C12, C13 and C14 are excluded as they are not applicable to Alliander’s operations, which concern the operation of energy transport infrastructure and not the production or sale of physical products.

Alliander does not have any specific targets currently set for 2030, but plans to set targets in line with the Science Based Targets Initiative (SBTi) in 2025. For further details, see the transition plan.

Climate footprint development and results for 2024 

The energy transition, cutting emissions in our operations, and climate-adaptive measures for energy infrastructure and sites are intersecting issues that need to be thought about holistically. To provide a resilient response to the tasks we have outlined, we as an organisation have to pay attention to the availability and allocation of people and resources. As well as our own funds, we use the scope we have for outside funding, among other things, through green bonds and loans. We will provide more details about resource allocation in the forthcoming climate transition plan.   

Network and leakage losses, which arise mainly during the transmission of electricity and gas, account for 96% of the carbon emissions from our own organisation. We are working to reduce our technical and administrative network losses each year by using an internal CO₂ price, among other things. The network losses percentage is an accurate approximation. Assumptions and estimates are used when calculating the carbon footprint and energy usage. Since 2016, the carbon emission factor for grid losses has been calculated on the basis of energy purchased from our suppliers to cover grid losses. The 2023 electricity labels have been used for the 2024 annual report. This gives a figure for the CO₂ coefficient of 0.19318 kg CO₂ per kWh. In 2024, 47% of carbon emissions were attributable to network losses in electricity infrastructure.

Network and leakage losses 

As of 2020, network operators are obliged to purchase the natural gas leakage losses over a larger part of the supply chain. Since then, they have therefore represented a much higher proportion of our carbon footprint. In 2024, gas leakage losses accounted for 14% of the carbon emissions in the total footprint, not including emissions from the consumption of transmitted gas volumes by end users. 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 (322.5 m³/km) than regular PE pipes (55.3 m³/km) and therefore higher emissions. The CO₂ equivalent is calculated using a factor of 29.8 (CO₂) to 1 (CH₄, methane).

Technical network losses 

Total technical electricity network losses fell by 2% in 2024 compared to 2023. This decrease was due to the increased network load compared to 2023, which resulted from an increase in local sustainable power generation and network congestion. In the years to come, sustainable energy feed-in may well increase and congestion issues may persist. Over time this will increase the load on our networks, leading to higher network losses. The amount of our gas-related network losses rose sharply compared to 2023, due to greater administrative losses. In the coming years, the CO₂ equivalent of a cubic metre of gas will be increased, so we expect to report higher carbon emissions for this category in the future.  

SF₆ in switchgear

In Europe, SF₆ (sulphur hexafluoride) is covered by the Fluorinated Gases Regulation (Regulation (EU) No 517/2014), which imposes strict rules on the use and emission of SF₆-related greenhouse gases. The Regulation, which was tightened further in 2024, is a determining factor in our policy. The new, stricter Regulation includes: 

• Restrictions on the use of equipment containing large amounts of SF₆: a phased limit has been imposed on the use of SF₆, especially in new facilities and equipment. Where the market offers alternatives to SF₆-charged equipment, we examine them carefully. Alternatives are gradually becoming available, depending on voltage class.

• Mandatory reporting and registration: firms must report all SF₆ emissions and rules have been set for the reclamation and reuse of SF₆ from old equipment. We report in accordance with the latest guidelines. We report any unusual events to the competent authority.

We actively monitor leakage losses. In 2024, carbon emissions due to SF₆ increased. This rise is primarily attributable to a number of specific, complex disruptions that were difficult to rectify, resulting in higher-than-expected SF₆ consumption.

Administrative network losses 

Administrative network losses are caused by issues like energy fraud, e.g. illegally tapping into the electricity supply to grow cannabis, or the absence of contracts for new or existing connections. In view of the high energy prices, we focused attention on how we could minimise that impact in 2024. Disconnections and the absence of contracts lead to higher administrative network losses for the network operator. Under statutory agreements, these network losses are offset by the network operator and the purchased energy is included in the calculation of the operator’s carbon footprint. Measures implemented by the government in partnership with suppliers and network operators are focused on combating the number of disconnections and uncontracted connections.   

We rely partly on the efforts of the police and judiciary, with whom we have collaboration agreements to help us detect fraud. In 2024, we continued to improve our fraud detection and recovery of losses suffered due to the absence of contracts for new and existing connections. In 2024, emissions attributable to administrative network losses fell for gas but rose for electricity.   

Emissions from buildings

Electricity usage has risen, among other things because we added a number of new owned and rented sites at Alkmaar Jan Ligthartstraat, Alkmaar Toermalijnstraat, Arnhem Beaulieustraat, Eemnes Vogelkersberg and Nijkerk Sluiswachter, and because we brought the location at Doesburgseweg, Zevenaar back into full use. Staff numbers also increased substantially at nearly all our locations, especially at Arnhem Bellevue, Dijkgraaf 4 Duiven and Westpoort Amsterdam. We also fed less power into the electricity grid, partly because there were far fewer hours of sunshine in 2024 (26%, source: KNMI). In addition, we were still unable to generate power at full capacity in Leeuwarden and Doetinchem and cannot feed into the grid there on account of congestion. 

Gas consumption in buildings declined, despite the new gas-fired site at Arnhem Beaulieustraat. It fell because we left Amsterdam Spaklerweg in 2023 and because we no longer need gas to heat the buildings in Leeuwarden and Doetinchem since their renovation. The building in Wageningen stopped using gas in 2024. Making buildings gas-free does, however, boost electricity consumption. We have also noticed an increased use of electric vehicles, so our sites are being used more for charging.  

Emissions from vehicle fleet 

In recent years, Alliander has taken steps to improve the sustainability of its vehicle fleet. Fully electric vehicles will become standard for business use. Since July 2023, we have taken an important step towards our sustainability goals by requiring all employees with leased cars to choose fully electric vehicles (EVs). For our company vehicles, we have an ‘EV unless’ policy, which means that we are aiming for a rapid transition to fully electric cars. We expect our leased vehicle fleet to run exclusively on fossil-free energy by 2030. In 2023, we also started the electrification of company vans. The percentage of EVs in our vehicle fleet rose to 41.1% last year, a 38% rise relative to 2023. 

Reaching our targets depends on continuing technological progress in the availability of suitable vans. Electrifying the van fleet also requires involvement of the manufacturing chains. Alliander ordered another 217 electric vans this year, which will enter use in mid-2025. About 89 mechanics and technicians are now driving electric vans. Although we are making considerable progress, we note that the current range of electric commercial vehicles on the market does not fully match the specific requirements that Alliander sets in order to perform high-quality work. Nevertheless, we remain firmly committed to our ambition to go sustainable. We will keep monitoring market developments closely in order to continue making our commercial vehicle fleet more sustainable. Our aim is to switch to EVs wherever possible and thus contribute to a more sustainable future. All Alliander employees, including those with leased vehicles or mileage allowances, can now obtain an NS Business Card, which allows them to use public transport for their work. In this context it was also agreed that the commuting allowance for car or bicycle use should be similar to the average cost per kilometre of second-class public transport.

In 2024, due to a growing workforce and increased travel mileage, carbon emissions from mobility increased, despite diesel being phased out and our electric fleet being expanded. 

Footprint of IT equipment 

Our IT facilities account for a large part of the electricity consumed in Alliander’s buildings. We measure this consumption annually and assess the developments of the past year. Alliander’s digitalisation organisation is taking measures to reduce the amount of energy used by IT equipment. Their efforts focus on equipment in offices, Alliander’s data centres, cloud services and equipment used for home working that is issued by or registered with Alliander. Our efforts to reduce energy usage in 2024 included improving the efficiency of the data centres and replacing desktop computers, laptops and monitors with more efficient versions. We are phasing out desktop printers as much as possible and have reduced their numbers. Further reductions in energy usage are becoming harder to achieve, following the steps that have already been taken in previous years, not to mention the fact that the role of IT continues to expand as staff numbers rise and digitalisation continues. Achieving further reductions will involve looking at harder options such as refurbishment and lifetime extension. 

Supply chain emissions 

Our gas distribution network is part of the Dutch gas infrastructure. The natural gas it transports is used for many different purposes by end users. We record the associated greenhouse gas emissions as scope 3 emissions in our carbon footprint. The parties to the Dutch Climate Agreement have made agreements on limiting gas-related emissions and have set timescales for doing so. Alliander facilitates the agreed heating transition and the alternative supplies the transition will require. Reporting on the carbon emissions related to the total volume of natural gas we distribute shows that this has a large effect on the overall picture. Reporting is in line with the SBTi standards. Reported emissions from the distributed volume of gas currently fall outside the scope of our climate objectives and are not part of the intensity indicator. 

For 2024, we are also reporting the chain-related emissions of suppliers we purchase from. This forms part of our footprint, in scope 3. These are emissions which take place at our suppliers when making, transporting and delivering services and products. We calculate them by multiplying emission indicators for each sector by Alliander’s expenditure in the sector concerned. These emissions currently fall outside the scope of our climate objectives and are not part of the intensity indicator. To calculate emissions from materials procured, we use standardised key indicators, such as eco-costs in the Idemat app. For comparison purposes, we work with a carbon price. Working with an internal CO₂ price makes it easier to see which investments and which purchased components lead to a higher CO₂ reduction. The procurement percentage based on CO₂ pricing is 304 kt CO₂e, 3% of the total indirect scope 3 emissions in our upstream and downstream value chain.

To actively reduce our supplier-related emissions, we are taking the following actions: 

• Sustainable purchasing policy: We encourage our suppliers to use more sustainable materials and production processes by including carbon reduction as a selection criterion in tenders. This means that CSR is included in every category strategy, in the sourcing plan and in the tender documentation. 

• Carbon pricing in procurement: We attach a price to CO₂, which makes investments and procurement decisions that lead to a higher CO₂ reduction more visible.  

• Use of recycled and circular materials: Where possible, we encourage the use of circular raw materials and recycled materials in our infrastructure projects. Internally, we reuse our technical components wherever possible. 

CO₂ performance ladder 

We assess our approach to and the reduction of our climate footprint based on the criteria for the CO₂ performance ladder. In 2024 we once again achieved level 5, the highest level under this Dutch initiative. This demonstrates our understanding and implementation of the following:  

• Our own footprint (level 1)

• Possible reduction measures (level 2)

• Our capability of actually implementing those measures (level 3)

• Transparency regarding our performance and ambitions (level 4)

• Innovations with our supply chain partners (level 5)

CO₂ performance is an assessment criterion for tenders. We know the carbon emissions of our main suppliers and are committed to the government’s CO₂ reduction programme. In 2024, our certifying body reassessed and confirmed the operation and scope of our certification.  

CO₂ intensity ratios

Intensity value of total emissions and reduction of greenhouse gas emissions for activities in the ‘distribution and transformation of electricity’ sector (Nace D35), plus the distribution of gas.

Basis of reporting

Greenhouse gas intensity based on net revenue is calculated as the sum of scope 1, scope 2 (location-based/market-based) and scope 3 emissions, including the carbon emissions from distributed gas, divided by reported net revenue (see note 21).
In 2023, the location-based greenhouse gas intensity was 3,186 tonnes CO₂ equivalent per million euros of revenue. In 2024, this figure went down to 3,269 tonnes CO₂ equivalent per million euros of revenue, a fall of 2.6%.
The market-based greenhouse gas intensity was 3,050 tonnes CO₂ equivalent per million euros of revenue in 2023 and fell 3.2% to 3,148 tonnes CO₂ equivalent per million euros of revenue in 2024.
If the carbon emissions of distributed gas are disregarded, the intensity figures are lower:

• The location-based greenhouse gas intensity was 395 tonnes CO₂ equivalent per million euros of revenue in 2023 and fell 9.6% to 357 tonnes CO₂ equivalent per million euros of revenue in 2024.

• The market-based greenhouse gas intensity was 259 tonnes CO₂ equivalent per million euros of revenue in 2023 and fell 8.9% to 236 tonnes CO₂ equivalent per million euros of revenue in 2024.

Carbon emissions reduction through CO₂e offsetting and certificates 

Part of Alliander’s policy involves greening electricity network losses by generating additional sustainable energy in the Netherlands and purchasing Gold Standard certificates. This greening of our network losses and other emissions meant that we were climate-neutral according to our 2024 climate policy. In 2024, Alliander spent a total of €5 million on greening CO₂e emissions. Our footprint for scope 1 and 2 emissions after greening in 2024 is 0 kt CO₂e. 

Guarantees of Origin 

In 2024, we greened 261 kt CO₂ of our total network electricity losses with Guarantees of Origin from Dutch wind certificates. We also received 12.6% of the electric network losses as green electricity.  

In 2024, we greened 100% of the total electricity network losses with Dutch wind certificates by activating additional contractually secured green certificates. Alliander assesses the supplier of the certificates against the supplier criteria in its general procurement policy. This approach ensures that our network losses are low-carbon and supports growth in renewable energy generation. 

The reliability of purchased GOs is fully guaranteed by VertiCer criteria. The GO system is designed to prevent double counting of avoided carbon emissions. One GO represents one megawatt of sustainable electricity. If a country exports a GO to another country, the avoided emissions can no longer be counted in national reporting to the European Commission. This rule applies to all European countries, as well as to countries with which the European Commission has agreed a sustainability target. 

Gold Standard certificate  

Alliander greens all other emissions, such as gas network losses, commuting and business travel in scope 3 with Gold Standard Carbon Credits. The relationship between GOs and Gold Standards in 2024 was 61% Guarantees of Origin and 39% Gold Standard certificates. A total of 446 carbon credits were used in 2024. Alliander does not take part in external projects aimed at carbon storage or removal and does not acquire carbon credits that originate from them. Alliander has not entered into any long-term contractual commitments to obtain Gold Standard certificates.

Alliander is planning a switch to the SBTi framework, under which Gold Standard certificates are not permitted. This means in particular that we will no longer be able to offset our methane emissions (gas leaks) and will have to invest more in cutting those emissions. We have made a conscious decision to progressively green our procurement for network losses with electricity from investments in renewable sources.   

The Gold Standard is a quality mark for carbon credits developed by the World Wide Fund for Nature. Issued certificates must not be more than five years old. Alliander uses carbon offset certificates outside the value chain. Alliander has no information on the extent to which corresponding adjustments qualify with respect to Article 6 of the Paris Climate Agreement. 

Internal carbon price

We use an internal CO₂ price as a weighting factor when assessing our investments. Energy savings or reductions in methane leaks are assigned greater weight as a result. In 2020, Alliander took the initiative in persuading all the network operators to reach a sector-wide agreement on (higher) internal CO₂ pricing, and the network operators resolved in 2021 to use the same CO₂ price of €50 per tonne and to raise it progressively over time. The network operators raised the internal CO₂ price to €100 per tonne in 2022 and to €150 per tonne in 2023. In 2024 the price remained at the 2023 level.

When assessing our tenders, we include the energy consumption of components during their service life as far as possible. Given the volumes we purchase, we are always looking for improvements in this area. Working with an internal CO₂ price ensures stronger prioritisation of a higher CO₂ reduction in respect of our own investments and the components we purchase from others. We are finding that price rises in the energy market, together with our tender specifications regarding energy efficiency in combination with CO₂ prices, are making a clear difference. The internal carbon price is a shadow price and has no impact on the company’s financial statements.

Carbon price types used

The internal CO₂ price of €150 per tonne forms part of the Price of Network Losses.

The Price of Network Losses is a shadow price used to incorporate network losses and the associated carbon emissions into investment decisions and business cases. The figure of €150 is based on the ‘prevention price’ for CO₂. This is higher than the market price in the European Emission Trading System (ETS) and is also ‘consensus-based’ within our sector. In recent years, efforts have been made to determine the appropriate pricing level for the network operators as a whole, based on financial consequences and CO₂ impacts. The idea is to prevent excessive market distortion (exclusion of suppliers) and ensure that investments in the energy grid for the energy transition are not undermined. In 2024, the whole sector began a more extensive integrated sensitivity analysis of the core processes in case of future rises in the CO₂ price. 

Examples of cases where the Price of Network Losses made a difference in 2024 are:

• MSR-gateway (APM): in the investment proposal for the MSR gateway, the Price of Network Losses was used to integrate the business case for proactive fraud detection into the measurement of assets.

• Tender for distribution and grounding transformers (Procurement): the tender for distribution and grounding transformers specified the maximum amount of power (in watts) that a transformer can consume in network losses. If a supplier is below this level, network losses are reduced and this is taken into account in the award process via the Price of Network Losses.

• Gas leak detector vehicles (Innovation): the Price of Network Losses was included in the business case for the procurement of Picarro leak detector vehicles for cutting gas leak losses.

• Cable tender (Procurement): in the evaluation of the MV+ cable tender, the network loss calculation for medium-voltage (lot 1) and low-voltage distribution (lot 2) was taken into account in the total cost of ownership.

Emissions from the combustion of distributed gas by end users 

Since 2024, Alliander has reported on the emissions that result from burning the gas transported via the distribution networks of its subsidiary Liander. Although Alliander does not sell gas itself, Liander as a network operator plays an essential role in the energy chain. Although distributors such as Liander have no formal responsibility for these emissions, the GHG Protocol recognises the importance of voluntary reporting. This does not apply to electricity because end user consumption of electricity does not produce any carbon emissions.
At the same time, there is increasing social and regulatory pressure to make the climate impact of the whole energy chain transparent. As a network operator, Liander plays a crucial role in this chain. Alliander therefore believes it is important to include these emissions in its reporting. 
The associated emissions in 2024 were: 8,860,745 tonnes CO₂e, an increase of 1,255,823 tonnes CO₂e relative to 2023: 7,604,922 tonnes CO₂e (+17%). However, the figure represents a decline of 1,843,458 tonnes CO₂e (-17%) when compared to 2021 (10,704,203 tonnes CO₂e). The rise in emissions in 2024 relative to 2023 can be explained by a longer cold weather period in 2024 and an extremely cold January, which led households to use more heating. A shift in the pattern of energy consumption, possibly due to changed consumer behaviour and energy prices, also played a role in the higher volumes. On the other hand, the 17% decline in emissions relative to 2021 reflects a structural trend whereby efforts to improve sustainability, energy-saving measures and changing market conditions have caused total volumes to go down.  

Basis of reporting 

The calculation is based on the total gas outflow, assuming that all gas is fully combusted by end users. The emission factor for natural gas as published on CO₂emissiefactoren.nl is used for this. 

Climate change adaptation

Alliander aspires to be fit for the future. One aspect of this is dealing effectively with the risks and opportunities presented by climate change. These include physical risks, e.g. flooding, but also business and commercial effects, such as changes to tax or legislation. Although Alliander does not have a current risk analysis in line with CSRD requirements, this is an important issue for us. Climate risks form part of the Alliander risk management framework and are included in the annual risk session with the Management Board.
Adaptation is the process of adapting ourselves to the changes that climate change brings. This means setting up our infrastructure and processes so that they can withstand extreme weather conditions. By making adjustments, we ensure that the energy supply will remain reliable, even in less favourable circumstances. 

Impacts, risks and opportunities

Climate change creates several risks for our assets.

• Risk – Disruption in vital energy infrastructure leads to increasing maintenance costs or asset loss.

• Risk – Disruption in the value chain for materials (provisioning) required for vital energy infrastructure leads to higher purchasing costs.

Stakeholder expectations

Extreme weather conditions are a recurring phenomenon in the media. The intensity, length, scope and consequences of extreme weather seem to be increasing, sometimes affecting large areas. The resulting damage and suffering are headline news. Public authorities are working on catastrophe planning and involve us in designing adaptive policies to make regions more resilient, for example, to flooding risks. Capital providers are asking questions about risks and risk mitigation in relation to planned investments. Conservationists and communities are doing more to make open spaces climate-adaptive. For Alliander, this means having to deal with new and different criteria, which we apply in consultation with stakeholders and to which we want to offer a timely response.

Summary of identified risks and opportunities

Physical risks and opportunities 

Our physical risks mainly stem from supply chain effects in the event of extreme weather conditions and flooding. This involves potential damage to our own components or TenneT’s high-voltage pylons. Given the low elevation of some of our service areas, rising sea levels also pose a risk. Having to deal with higher temperatures more frequently also drives up electricity consumption, as homes and offices use more air conditioning. 

Transition risks and opportunities 

Our networks are an indispensable element for ensuring a successful transition to a sustainable energy supply. The transition offers opportunities: growing electrification in society and the feed-in of more green gas into our networks. But there are also transition risks: the demanding but unavoidable pace at which we must fulfil our task, and phasing out the gas infrastructure. 

Impact of physical adaptation and transition risks

We drew up a qualitative catalogue of our physical and transition risks in late 2020. The risks were determined based on two average global temperature rise scenarios: the 1.5 degree Breyer scenario and the 4 degree scenario defined by the International Energy Agency (IEA). Impact projections up to the year 2100 were prepared for both, incorporating chain, asset and customer-related climate risks. The climate scenarios were used to assess physical and transition risks in relation to our trend reporting, which is used in the nationwide Energy System Plan and in the annual risk assessment with business units. 
The 1.5 degree scenario is used because it corresponds to the approach followed by the Dutch government. This scenario assumes 100% sustainable energy by 2050: far-reaching electrification, decentralised generation, higher efficiency, large-scale use of solar and wind energy, increased energy storage and a more independent energy supply.

The 4 degree scenario is applied because it represents the most extreme trajectory in terms of physical risks and climate adaptation. It involves an intensification of current trends up to a temperature rise of nearly 4 degrees in the current century and 5.5 degrees over the longer term. This is the worst climate scenario, involving major physical risks worldwide. In this scenario, fossil fuel use and large-scale carbon emissions dominate. The high temperature scenario assumes a situation in which physical risks manifest in more extreme ways than under the low, one-and-a-half degree scenario. This affects the speed at which the company needs to take action and adapt its activities, not least because of the serious threat of extreme weather effects and an energy supply breakdown. The one-and-a-half degree scenario identifies the opportunities that arise for various transition techniques such as sustainable and decentralised feed-in and storage. These are considered to be relatively favourable.

Following on from this study, Alliander intends to reassess the scenarios and impact analysis in 2025, incorporating more of the points demanded by the ESRS. These include applying new scenarios, multiple time horizons, greater quantification of the impact on assets and operations, a resilience analysis and a consideration of the potential impact on the financial statements. The resilience analysis will serve to report on transition risks and opportunities, as well as on the vulnerabilities of the organisation, its infrastructure and its supply chains. This will include assessing whether or not certain operating activities are compatible with the adaptation policy. In addition, the potential impact of climate change on operations, finances and reputation will be analysed. Based on these insights, measures and strategies will be developed to reduce the risks identified and increase resilience. Account will be taken of the implications for affected stakeholders. 

Risk management

Climate risks in relation to operations form part of Alliander’s risk system. Annual updates are performed of the extent to which the organisation manages and monitors these risks. Responsibility for asset maintenance lies with the business units, which also mitigate the risks identified in that regard. The 2024 risk analysis covered our current and desired levels of adaptability. No specific time horizon was applied, but this is to be added in the course of a follow-up scenario analysis. Physical and value chain risks both form part of the risk assessment with business units. The results of the risk assessment and the operation of risk management in relation to climate risks are regularly discussed (at least once a year) with the topmost management level. In November and December 2024, an examination was carried out into the impact of climate change on the organisation (assets and operations) and future energy demand. Three workshops were held, in which various stakeholders from the organisation took part. The examination in December 2024 covered our current and targeted adaptability. No specific time horizon was applied, but this is to be added in the course of a follow-up scenario analysis. The results of the 2023 risk sessions indicate a high risk of damage and asset loss due to flooding. The effects of drought and high temperatures can also pose a risk to the continuity of our operations. Our current adaptability comprises: 

• The use of weather protocols (applicable to all production chains).

• Safeguarding and recovery plans to prevent network overloading and outages, and restore supplies as soon as possible.

• A stable crisis organisation is in place with established crisis plans, which cover the whole organisation and are the subject of regular drills. These include extreme weather scenarios. 

• Business continuity management plans (applicable to the whole organisation).

• A strategic asset management plan (SAMP) that specifies scenarios for the future and takes account of transition risks. This includes ways in which the strategy and operating plans can be more closely adapted or aligned to climate change.  

Alliander regularly assesses its physical and transition risks in line with international standards and current insights. The results form the basis for possible adjustments to climate adaptation policy and measures with a view to implementing efficient and effective mitigation steps. Alliander participates in national and regional alliances. We work together with other network operators in Netbeheer Nederland and agree on national policy and planning. A Climate Adaptation working group is investigating the potential physical effects of climate change on network components and energy infrastructure under the banner of the industry association Netbeheer Nederland. The group is also developing recommendations for climate adaptation measures for infrastructure. This is needed in order to determine the actual resilience of our organisation more precisely. Agreeing on policy is essential given the many dependencies and roles in climate policy. Differences between regions demand focused agreements about policy and approach. Alliander caters for this with a multi-layer adaptation policy. We work together with regional and local actors on spatial planning and measures such as local water management, dykes and quay reinforcement. In the development phase, we align the overall development plan and take measures accordingly. In existing situations, we take ad hoc measures where necessary. Lastly, we participate in (regional) emergency plans and crisis response simulations.  

Energy

We manage energy and gas networks, which means that very large volumes of energy pass along our networks every day. A great deal of our energy usage is associated with this. Alliander is accountable for the energy loss caused by the rapidly increasing transmission of energy in the part of the transmission networks it manages. Electricity network losses in 2024 were 1,343 GWh (2023: 1,367 GWh), while 44 (2023: 28) million m³ of gas was lost through leakage. Energy is also used for mobility, buildings and sites, and as input for purchased materials. 

Transition and our own energy usage 

Alliander wants to contribute to the energy transition by giving all customers access to sustainable energy on equal terms. In 2024, we enabled 10,077 MW (2023: 9,216 MW) of solar and wind power to be carried on our networks. At the same time, we aim to keep the social cost of the transition as low as possible. Climate change means that rising energy use will ultimately have to be met solely from renewable forms such as wind, solar, hydropower or sustainable heating sources. Our contribution to the energy transition and a fossil-free energy supply forms part of our strategy and is thus our most important social pillar.
Secondly, we work within the limitations of the planet, which is why we align our strategy and business targets with the one-and-a-half degree scenario under the Paris Climate Agreement. To this end, we are making our own energy use more sustainable and working towards making our operations circular. 

Impacts, risks and opportunities

• Positive impact – Creating energy infrastructure to promote electrification and the use of renewable energy makes a positive contribution to the energy transition.

• Risk – Declining gas consumption and fewer gas connections increase the cost per gas connection and reduce revenue from gas consumption. 

• Risk – Accumulating costs for necessary network investments lead to possible financing shortages. 

• Opportunity – Climate agreements increase demand for heating connections, leading to higher revenue.

• Opportunity – Introduction of new technologies leads to higher revenue and cost savings.

Energy consumption and energy mix

Total energy usage related to own operations

Alliander uses 2021 as the reference year for comparing energy and carbon data. This is because we expanded our footprint in 2021 with data on scope 3-related emissions, improving comparability with subsequent years. Alliander has formulated targets for sustainable and efficient energy use for its operations. 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 represents a value of 183 g CO₂/kWh. The energy mix comprises 52% renewable energy and 48% natural gas. All of Alliander’s office buildings meet the criteria for an A or B label in accordance with the Building Structures (Living Environment) Decree (Besluit bouwwerken leefomgeving). Solar panels on our buildings also feed into the electricity network. 

Energy usage by source and energy mix

Basis of reporting: energy usage

The scope of the energy usage reported in the table covers our own activities in relation to: energy and gas distribution networks; electricity, gas and heating for buildings and sites; and fuel consumption for mobility.

Our total energy usage rose by 19% from 1,557,097 to 1,849,648 MWh. This increase was mainly the result of an increase in gas consumption in our network. Our total share of renewable energy went down by 5 percentage points, from 79% to 74%.

Non-renewable sources: Energy from non-renewable sources includes the gas lost from leakages and the energy we use to heat office buildings. This increase stands out due to a change in the leakage loss calculation method and increasing administrative network losses. The electricity consumption for the sites reflects the energy mix of the purchased energy. We offset this volume with Guarantees of Origin from Dutch wind farms. The source for converting combustible fuels into MWh is based on the latest available data on emissiefactoren.nl. A conversion factor of 35.17 is used to convert cubic meters of gas into megajoules; this is the official energy value for Dutch natural gas. The conversion factor used to convert gigajoules into megawatt-hours is 0.28.  

Renewable sources: Energy from renewable sources comprises purchased electricity and the consumption of self-generated renewable energy from our sites.

Energy intensity ratio

To arrive at the energy intensity ratio, Alliander divides its own scope 1 and 2 energy usage in megawatt-hours (MWh) by its net revenue. This ratio takes into account the gas and electricity consumption of buildings and the fuel consumption of the vehicle fleet. Network-related energy losses also form part of these scopes. In 2024, energy losses from the networks increased. This is reflected in the energy intensity increase from 571 to 608.   

Energy intensity per euro of net revenue  

Table for sectors with high energy usage – Alliander.

Net revenue from activities in sectors with a high climate impact, as defined in the EU taxonomy, was €709 million in 2024. This revenue derives mainly from the natural gas sector. Net revenue from activities that do not qualify as high climate impact sectors under the EU taxonomy was €2,334 million. This comes mainly from electricity distribution. Both activities fall under Nace code 35.