Our Climate
Commitments
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D e s ig n e d & p ro d u c e d b y D e s ig n M o ti v e L td .2
Our Climate Commitments
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EDF ENERGY’S CHIEF EXECUTIVE,
VINCENT DE RIVAZ,
INTRODUCES OUR VISION
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OUR
VISION
THERE IS NO MORE PRESSING
CHALLENGE FACING THE WORLD
TODAY THAN CLIMATE CHANGE
“ We present to you
Our Climate Commitments.
We will build on them in
years to come. We believe
these commitments will
make a material difference
now, and in the future”
There is no more pressing challenge facing the world than climate change.
By acting now, and acting together, we can rise to the challenge and tackle climate change head-on. This programme of action focuses on what matters most to our customers and where we can achieve positive results. EDF Energy is a core part of EDF Group,which has by far the lowest carbon emissions among all the major
European energy companies. Electricity supplied by EDF in France has a carbon intensity which is already around a tenth of the average in the UK.
The commitments we are making here, which will require significant investment, demonstrate that EDF Group is serious about playing its part in addressing climate change through action in each of its core markets. As an energy company which in the UK uses coal and gas to produce electricity, the changes we put into practice will make a big difference to the UK’s carbon footprint. Whilst reducing our carbon emissions, we are aware that millions depend on us to provide reliable, affordable energy.
For this we need a diverse range of energy sources which must include nuclear. It is our strong conviction that there is no practical alternative.
We will provide choices enabling our customers to play their part too. Using energy more efficiently is the surest way to reduce costs to customers and costs to the planet. The scale of our commitment goes far beyond anything the industry has seen. I hope others will now follow our lead. We cannot leave this problem for future generations to solve. Our actions have already started, though some important steps will take time to deliver. We present to you Our Climate Commitments. We will build on them in years to come. We believe these commitments will make a material difference now and in the future.
Vincent de Rivaz
Chief Executive, EDF Energy
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Our Climate Commitments
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CLIMATE
CHANGE
Climate changeis the biggest challenge facing the world today. We produce power which is the lifeblood of every community but its production generates significant CO2 emissions and
uses precious resources.
Human activity is causing the climate to change. We believe we have a responsibility to take action.
Our intention is to provide the power which is vital to society in a way that better protects the natural environment we all depend on. Amongst the large energy companies, EDF is the lowest carbon-emitting power producer in Europe. We will act here in the UK to strengthen the overall carbon position of the group. We shall be part of the solution and lead the way by example.
BREATH OF FRESH AIR
EDF Energyis currently undertaking a five-year
investment programme to improve the efficiency and to reduce CO2emissions at its two coal-fired power stations. Work started in summer 2006 to fit new high-pressure steam turbines. This £40 million programme is estimated to reduce the concentration of greenhouse gas emissions by 2.5%, saving the equivalent of five million tonnes of CO2in the period to 2020.
LOW-CARBON PROJECTS
During 2006EDF Energy together with the London
Climate Change Agencyformed an energy services company which will help develop decentralised low-carbon energy projects in the capital. The new
company will finance, build and operate local energy systems for new and existing building developments. A significant project pipeline has been established which should result in substantial CO2emissions reductions of more than one million tonnes in the next decade.
“ We intend to be
part of the solution
and lead the way
by example”
Electricity production
We will reduce the intensity of CO2emissions from our
electricity production by60% by 2020.
To do this whilst maintaining security of supply we will build new, more efficient power plants, some of which will be operational before we close the old ones. As these plants come on line, the carbon intensity of electricity we produce will fall. Even though for a limited period of time our total carbon emissions will increase as more electricity is produced, the UK will benefit because our new plants will displace power produced by companies using less carbon efficient means.
We believe the UK should maintain a diversity of generation sources and we intend to do so for ourselves. Nuclear power will need to be part of the UK energy mix to balance security of supply, climate change and energy prices. Subject to UK Government policy and public acceptability we will play our part in replacing the UK’s ageing nuclear fleet over the next two decades.
Additionally, we will invest in around 1,000MW of renewable energy production, enough to power around 500,000 homes. We plan to develop new gas turbine capacity and will be involved in developing clean coal technologies.
Other business activities
We will reduce the CO2emissions from our offices and
depots and from our transport activities.
We will take action to cut CO2emissions from our offices
and depotsby 30%and from our transport by20% by 2012.
For our buildings, this will be achieved through a combination of energy efficiency measures and additional on-site
renewable generation.
For our transport, we will minimise our business travel and improve the efficiency of our fleet.
Our objective is to eliminate, then counterbalance, any remaining emissions from these activities by 2020.
OUR CARBON
PLEDGES
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60
%
reduction
by 2020
Intensity of CO2emissions from
electricity production 2006 2020 g / k W h 1000 800 600 400 200 0
CO2emissions from offices and depots
(tonnes/employee) 2006 2012 T o n n e s p e r e m p lo y e e 3 2.5 2 1.5 1 0.5 0
30
%
reduction
by 2012
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Our Climate Commitments
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CUSTOMERS
EMPLOYEES
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Tackling climate change will require all of us to work together. EDF Energy is pledging to significantly reduce its own carbon emissions. It is also part of our responsibility to help and encourage our customers to do the same. We think this will improve the quality of life for us all.
One way to tackle climate change and reduce CO2 emissions
is to be more energy efficient and to reduce energy
consumption. We can all take action to save energy and to use it more wisely. Cutting energy consumption is the surest way of reducing energy bills.
People are important to usin every aspect of our business. We are conscious that our employees are our most effective advocates. Most often they are our customers too.
We want to attract and retain the best people so we can deliver excellent customer service and stay true to our values. For these reasons, we take our responsibilities to our employees very seriously and actively encourage their participation in delivering our pledges.
“ It is part of our responsibility to help and encourage
our customers to reduce their carbon emissions”
Lowering CO
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for customers
In addition to reducing the intensity of CO2emissions from
our electricity production by 60%, we will reduce the proportion of CO2arising from our customers’ energy
consumption by15% by 2020.We will measure this by reference to Government-accredited carbon conversion indicators.
We will achieve this by offering a variety of products which allow our customers to reduce the CO2associated with their
gas and electricity usage. We will ensure that all our new offers are designed to help and encourage customers to use less energy. We will build on the success of our award-winning Read. Reduce. Reward scheme which rewards customers for doing this.
In addition we will provide more information to our customers on their energy usage through installing intelligent metering and providing innovative ways to help them control their consumption.
Subject to the Government’s continuing commitment to meet its stated emissions reduction targets, we will go beyond what is required of us by promoting highly efficient appliances, micro domestic generation products and home insulation.
OUR CUSTOMER
PLEDGE
100% involvement
We will inspire all of our employees to champion our energy pledges by taking active steps at home and at work to reduce their carbon footprint and that of othersby 2012. We will do this by giving our employees the opportunity to see and discuss the latest information available on climate change. For example, in 2007 all our employees will be given time to see the film “An Inconvenient Truth”and discuss its implications with colleagues.
Our One Planet and One Community Ambassador networks, established in 2006, consist of employees who champion our sustainability performance by reducing our environmental impact and increasing community engagement. We intend to give all our employees the opportunity to become
Ambassadors. By 2012 we will doubleour existing
investment of approximately 18,000 employee hours per year for Ambassador activity.
To support the Ambassadors, every employee will be encouraged to take more than two days a year of paid time off work in order to get involved in appropriate community and environmental projects. If every employee were to do so it would be the equivalent of around 180,000 hours of employees’ time.
OUR EMPLOYEE
PLEDGE
CUSTOMER REWARDS
Read. Reduce. Reward,launched in May 2005, gives
our customers the ability to reduce the amount they spend on their home energy and the carbon they emit in the process.
Customers are rewarded with loyalty points from the Nectar scheme for submitting their meter readings and for reducing their consumption.
More than 180,000 customers have signed up
to Read. Reduce. Rewardto take advantage of the
OUR EFFICIENCY
PLEDGES
Reduce – Re-use – Recycle
Waste materials
We will reduce the volume of materials sent to landfill
by50% by 2012.
We will do this by reducing our raw material consumption, working with our supply chain and increasing our recycling. Specifically we will invest in treating our largest volume by-product (ash) so that it can be re-used or recycled. Our streetworks activities also generate significant landfill volumes. We will reduce this by30% by the end of 2007
and eliminate it completely by 2020.
Finally, we will increase the recycling rate for our office and depot waste to beyond the national average
(minimum 65% by 2012).
Electronic billing
We will reduce the volume of waste we produce in our energy billing activities by30% by 2020, by encouraging customer uptake of electronic billing.
Office and depot waste
By 2020we will send no office and depot wasteto landfill.
Where possible we will reduce and recycle. The remainder will be used to generate low-carbon energy.
It is crucial that all our operations are efficient.
Efficiency translates directly into financial, climate change, and other environmental benefits. By reducing the
resources consumed and waste produced we lessen the greenhouse gases linked to the extraction, processing, and transportation of these materials. Reducing the waste we send to landfill helps reduce the emission of the damaging greenhouse gas, methane.
As we supply the everyday necessities of electricity and gas which our customers depend on, we are committed to minimising resources used in the process. Wherever possible, we will reduce at source, re-use and recycle. At the same time, we will keep by-products to a minimum. Where by-products are part of our production process, we will put them to good use.
In the same way that customers are being encouraged not to waste energy, we think it’s our duty not to waste resources or to create avoidable waste in the process of delivering that energy to customers.
We will encourage all our suppliers to reduce their carbon footprint and improve their waste management practices.
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RESOURCE
& WASTE
MANAGEMENT
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Our Climate Commitments
“ We think it’s our duty
not to waste resources
or to create waste
that could be avoided”
Recycling rate of managed office and depot waste
2006 % R e c y c le d 2012 70 60 50 40 30 20 10 0
Estimated paper used for billing (tonnes) 2006 T o n n e s 2020 400 350 300 250 150 100 50 0
CONTRACTOR RELATIONS
Contractors play a vital rolein our operations. Very often, as they carry out huge and complex projects on our behalf, they are the public face of EDF Energy. For some years we have developed one-to-one “alliance” relationships with our key contractors. During 2006 we strengthened this by introducing a new approach, to help us work even more closely with our three groundworks contractor partners. Our aim is to agree common objectives, share best practice and align business strategy. The ethos of sharing best practice now runs so deep that the contractors even share with each other. A recent example is that when one of our contractors developed a depot to recycle material excavated during streetworks, they promptly offered the service to the other two.
FLUID-FILLED CABLES
In London,hundreds of kilometres of the public network consist of cables filled with oil or other insulating fluids to maintain their temperature. Over time, these can crack and the oil can escape into the ground.
We need to detect all leaks quickly, especially where our network runs through areas classed as environmentally sensitive.
On top of our ongoing programme to replace ageing cables, we are investing in a new leak-location technology. This will enable us to pinpoint more accurately where a leak occurs, reducing the
excavation needed to locate the leak on the affected cable. This means less disruption to motorists, pedestrians and businesses – and minimises damage to the environment. See photo on the left.
increase
to
65
%
30
%
reduction
by 2020
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Our Climate Commitments
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GOVERNANCE
“ We want to be held accountable
for the commitments we are
making here, and good
governance is central to ensuring
that our pledges are delivered”
STAKEHOLDER ADVISORY PANEL STATEMENT
We welcome the opportunity to comment on
EDF Energy’sClimate Commitments. As a stakeholder
panel, we provide independent opinion and insight to EDF Energy on social and environmental policy matters.
We have considered whether this document addresses the most important climate change challenges and whether EDF Energy’s response to those challenges is appropriate.
There can be no greater challenge for an energy company than the need to tackle climate change. We believe that this document covers the company’s most significant greenhouse gas sources and does not shy away from the reality that, today, the company has one of the largest carbon footprints in the UK.
In response to this challenge EDF Energy has set itself targets and objectives that universally go beyond what is being demanded of it through current legislation, or any that has been mooted. These objectives are both short and long term with immediate actions as well as signposting future intentions. The commitments address the company’s principal emissions sources and, if met, are proportional to the challenges. Specifically, the commitment to reduce emissions from generation by 60% by 2020 is in line with UK Government’s target but will be delivered a whole 30 years sooner.
It is also clear that EDF Energy’s customers have a vital role to play in delivering emissions reductions and the
company has pledged to ensure that all of its new products are designed to help its customers reduce their climate change impact. It is a proper focus on energy efficiency.
The company has been clear that it considers new nuclear generation plants to be a key element of its future energy sourcing mix, subject to UK Government policy and public acceptability, and are fundamental to efforts to reduce carbon emissions. We will continue to support the ongoing efforts which EDF Energy is making to ensure that all the environmental matters of concern to the public are clearly considered.
In the future, the panel would also encourage a second series of commitments on Social Responsibility,
demonstrating how EDF Energy is intending to address these key issues for society, and build on its existing Social Tariff position.
In summary, the panel considers this to be an important call to arms. It sets out the importance of climate
change, the significant scale of the challenge for EDF Energy and how the company will respond. As such it goes beyond what any other company in its sector has so far committed to do. Now that it has raised the bar, our job is to hold it to account for
delivery of its commitments and to meet the challenge it has set itself.
Will Hutton,
Chief Executive, The Work Foundation
Chair EDF Energy Stakeholder Advisory Panel
Strong governanceis critical to the successful operation of our business.
It means being sure that what we say translates into good practice. Without governance, everything is just words on a piece of paper.
To ensure and support the delivery of our pledges, we are committed to identifying the associated risks and issues for our business and managing them robustly.
Our specially-developed tools and indicators will ensure that the objectives within this document are considered each time we undertake a new project.
We want to be held accountable for the commitments we are making here, and good governance is central to ensuring that
our pledges are delivered. That is why we will report each year against these pledges with an independent audit of our progress.
We cannot do everything alone, and nor would we want to. We will consult widely to ensure we continue to address the issues our customers, and others, tell us are important. And we will engage with politicians and other opinion leaders to build support for our commitments and allow us to go even further where possible.
We will be at the forefront of the climate change debate in the UK. We will be open in our dialogue with our
stakeholders and in our communications, and we will be answerable for the commitments we are making.
EXPERT INPUT
In an innovative move,EDF Energy has appointed a group of leading experts to provide input to the development of its strategy and
business approach.
It has set up a Stakeholder Advisory Panel made up of eminent individuals with broad experience in business, community relations and the environment. The panel will play a valuable role in helping the company prepare for the challenges of the next five years.
Chief Executive Vincent de Rivaz and Executive members will attend the quarterly meetings to benefit from the perspective of experts from varied backgrounds outside the company. As well as providing intellectual input, the panel will provide a healthy challenge to the Executive, facilitate meetings with key opinion formers and be advocates on the company’s behalf.
EDF Energy,40 Grosvenor Place, London SW1X 7EN
Registered in England and Wales. Company registration number 2366852
About this document
Our Climate Commitments has been published by EDF Energy during June 2007 and has been printed by MPG Impressions.
MPG Impressions is ISO14001 accredited. This means they meet ISO environmental standards, which reflect a global consensus on good
environmental practice. Standards developed by ISO – a network of the national standards institutions of more than 150 countries – deal with environmental challenges and help organisations take a more pro-active approach to managing environmental issues.
MPG Impressions use no film or film processing and approximately 85% of the waste associated with this product will be recycled.
About the paper
This document is printed on Cyclus Offset (115gsm), a 100% recycled paper produced for Premier Papers by an ISO14001-certified mill. Every fibre comes from waste paper collected from consumers. All waste resulting from the production process is recycled. No environmentally damaging chemicals are used for bleaching, and the water used in production is recycled and returned to the river cleaner than it arrived.
About the inks
This document has been printed with inks made from 100% vegetable oils.
Other important information
The greenhouse gas emissions associated with the production of this document have been offset with Climate Care, who on our behalf are supporting energy efficiency and renewable energy projects around the world.
If you want to find out more:
www.edfenergy.com/ourvisionandperformance D e s ig n e d & p ro d u c e d b y D e s ig n M o ti v e L td .
