Corporate Social Responsibility Report Essent 2007

Being sustainable together.

Sharing dilemma’s.

2007 C S R R e p o r t E s s e n t N.V.

2007 CSR Report

06 Essent as an employer

Diversity in development 50

Interviews

Monic Bührs, Marie-Christine Osterop

Anouk Rasenberg, Margo van Berkel

07 Essent as a corporate citizen

Committed to the community 62

Interviews

Marco Grob, René Savelsberg

Annemarie Moons, Gijsje van Honk

08 Measuring sustainability 74

09 Assurance Report 78

Business is something that involves us all 4

We are society

Profile 6

01 Retrospective and outlook

Retrospective 10

Outlook 18

02 Corporate governance of CSR 20

03 Structure of the report and accountability 24

04 Essent as a business operator

Tomorrow’s energy 26

Interviews

Paymon Aliabadi, Gerard Hirs

Johan van de Gronden, Richard Schmölzer

05 Essent as a market player

Weighting sustainability 38

Interviews

Johan Maris, Helma Kip

Kornelis Blok, Nico Roozen

TABLE OF CONTENTS

Essent N.V.

4 Essent N.V. 2007 CSR Report

>www.essent .eu

Business is something

that involves us all

We are societyThis was the guiding principle in 2007 that helped us to even

deeper entrench Corporate Social Responsibility (CSR) in

our corporate policies and our business practices. The Busi-

ness Plan, which defi nes a number of explicit CSR targets,

was an important tool in that regard. In 2008 we will continue

to translate these targets into concrete measures for each

business unit, including key performance indicators (KPIs)

and target values.

Announcing new policies is not enough, not when it comes

to CSR either. An enterprise also has a responsibility to re-

port on the degree to which its policies have been executed.

For this reason, we published our fi rst separate CSR Report

(for 2006) in 2007. This explicit report on our CSR efforts

allowed us to initiate highly concrete discussions with our

internal and external stakeholders about our ambitions. In

addition, the publication of the report resulted in a gratifying

rise of Essent’s position in the annual Transparency Bench-

mark of the Dutch Ministry of Economic Affairs.

Our CSR policy is continually gaining momentum thanks to

our dialogue with stakeholders. We try to align our policies

to their expectations as much as we can by listening care-

fully to their recommendations and criticisms. In this report,

sixteen internal and external stakeholders present their

opinions on topics that matter to Essent, including energy

technology, the use of bio fuels, staff diversity and our re-

gional anchorage. We will take their comments to heart

where possible when planning any future steps.

Staff commitment is an absolute prerequisite for the suc-

cess of our CSR policy. After all, it is our collective staff

who help us achieve our ambitions. In 2008 we will launch

an internal campaign with a view to bolstering our staff’s

inspiration and motivation. Spurred on by the campaign

motto ‘How on Earth’, every staff member will be asked to

join in on activities to literally improve the social climate

both in and outside our company.

2008 is promising to be an earth-shakingly dynamic year!

Arnhem, the Netherlands, 27 February 2008

Michiel Boersma

Chairman of the Executive Board

Energy chain

generation

electricity

gas

trade infrastructure sales

>www.essent .eu

Profile Essent is a Dutch energy company that supplies electric-

ity, gas and heat to private and business customers. While

regarding the Netherlands as our home market, we are also

increasingly active in Germany and Belgium.

Essent’s operations cover the entire energy chain, from the

generation of energy – excluding exploration and extraction –

to supplying products and services to end-users: large and

small businesses, and private consumers. We also supply a


Esse

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www.essent .eu

variety of products and services, such as equipment

maintenance, energy advice, heat, operating sustainable

energy facilities and micro-cogenerators. We are also

engaged in three waste management activities:

waste incineration, waste composting and landfi ll manage-

ment. On 1 February 2007, Essent Kabelcom, a supplier

of cablecom and telecom products, ceased to be a part of

the company.

The 2007 fi gures show that in the Netherlands Essent is:

■ the market leader, with revenue of EUR 7.4 billion;

■ the leading producer and supplier of sustainable energy;

■ owner of Energie:Direct, one of the country’s fastest

growing energy start-ups;

■ leading with its waste management operation, processing

approximately 2.9 million tonnes of waste a year.

Essent is a non-listed public company with limited liability.

It was incorporated in 1999 and has its head offi ce in Arnhem.

Its shareholders are Dutch provincial and municipal authori-

ties. The company comprises 10 business units, 7 of them

forming the Energy Value Chain for the Netherlands, Germany

and Belgium. The remaining operations in Germany are con-

ducted by swb. The network operation is fi nancially, organisa-

tionally and legally separate from the other activities of the

company. At year-end 2007, the size of Essent’s workforce

was over ten thousand.

7 Essent N.V. 2007 CSR Report › Profile


7,372.7

5,826.5

1,190.5

355.7

6,431.4

4,954.8

1,316.5

160.1

5,875.9

4,621.7

1,133.0

121.2

Revenue per country - continuing operations

2007

2006

2005

7,377.5

5,671.8

1,216.8

378.0

1,001.6

(890.7)

6,441.6

4,588.4

1,241.6

380.2

1,055.6

(824.2)

5,889.6

3,543.8

1,276.2

362.4

993.0

(285.8)

Revenue per segment - continuing operations

2007

2006

2005

> Profilewww.essent .eu

9 Essent N.V. 2007 CSR Report › Profile

www.essent .eu

People 2007 2006

Number of employees1 10,223 9,832

% of women 27 27

% of women in management positions 14 14

% absenteeism rate due to illness 4.3 4.2

DART-rate 0.97 1.09

Power 2007 2006

Total sustainable generating capacity (MW) 1,042 1,065

% of sustainable energy in total generation 10.0 15.2

Number of green electricity customers in the Netherlands 927,000 936,000

Number of green for gas customers in the Netherlands 25,000 15,300

CO²-emissions (Ktonnes)2 14,625 14,496

% of solid biomass bearing EGGS label 48 33

1 In FTes excluding Essent Kabelcom

2 Emission orginating from electricity and heat generation according to Essent-

ownership share, excluding emissions from Essent Milieu and Essent Networks

Planet 2007 2006

Number of suppliers who have signed Supplier Code of Conduct 88 15

Donations (in euros) 300,000 300,000

Pro t 2007 2006

in millions of euros

Revenue 7,378 6,442

Profi t attributable to equity holders of Essent 2,594 761

Total equity 5,175 3,414

Total interest-bearing liabilities 724 1,620

Capital employed 8,204 6,559


>>>>>>>>>>>>01Retrospective and outlook

Retrospective

www.essent .eu

the first results are in

After a thorough exploration in 2006, 2007 was our fi rst

real policy year in terms of Corporate Social Responsibility.

People, Planet, Profi t and the fourth P for Power, which we

added ourselves, became serious business. CSR was fi rmly

cascaded throughout the organisation, on the shop fl oor and

in the Boardroom. Our Business Plan for 2007 was the fi rst

of its kind to include a chapter on CSR policy.

Two major steps were taken immediately at the beginning of

the year: the introduction of the CSR Advisory Board and the

appointment of CSR Ambassadors to the various business

units. These steps set the stage for the implementation of

our CSR Policy Plan 2007-2010. The Plan identifi es three key

policy areas: energy conservation, innovation and employ-

ability. It is encouraging to see that already good progress

was made in all three areas in 2007. Examples included the

Essent Energy Conservation Plan launched in cooperation

with our shareholders, the approval of our innovation strat-

egy, and the willingness on the part of Essent – traditionally

a male-dominated company – to introduce measures to ‘get

women to the top’.

These are but a few remarkable milestones that we will dis-

cuss elsewhere in this report.

international benchmark

The road map towards achieving our CSR goals is based on

the following seven strategic principles, which were defi ned

in 2006:

■ promoting sustainable development and limiting

climate change

■ strengthening our competitiveness in the countries

in which we operate

■ ensuring that our suppliers observe internationally

agreed human rights

■ raising the rate of labour participation for groups that

are currently underrepresented within Essent

■ raising the quality of work at Essent

■ raising the quality of life in our environment/surroundings

■ improving safety.

In June 2007 we conducted a review of these strategic princi-

ples. We were interested to fi nd out whether they suffi ciently

underpinned Essent’s ambition to be a leading sustainable

energy company. The conclusion was that, in order to allow

for a useful comparison with peer businesses, we needed to

model our CSR strategy on international standards. For this

reason, we transformed our seven strategic principles into

the following nine key policy areas, which now make up the

core of our CSR policy:

11 Essent N.V. 2007 CSR Report › Retrospective and outlook › Retrospective

www.essent .eu

■ emissions reduction

■ share of renewable energy in the fuel mix

■ energy conservation, including effi cient use

of base materials and fuels

■ innovation and knowledge management

■ customer satisfaction and quality labels

■ good employership

■ human rights

■ corporate citizenship

■ occupational health and safety.

Late in 2007 Essent was benchmarked against other large

energy companies in Europe based on the Dow Jones

Sustainability Index (DJSI), the leading global index tracking

the sustainability performance of listed companies. Essent

is the fi rst Dutch energy company to have its sustainability

performance benchmarked based on the DJSI criteria.

The outcome, which will lay the groundwork for our policy in

2008, provided a mixed picture. The most important conclu-

sions were that Essent could stand the comparison with

other European energy companies where the economic and

social dimensions are concerned, but that there is room for

improvement in respect of the environmental dimension. Our

climate strategy, in particular, is an area where fi ne-tuning is

in order (for further details, see chapter 8).

pursuing the best options together:

nationally and globally

We are keen to opt for sustainability, and our choice to do so

is a conscious and deliberate one. This is not to say, however,

that we intend to map out each and every route on our own.

Because the challenges are so substantial, we need to join

forces. What is more, if we team up with others, we can

send a strong signal to the market, infl uence developments,

and show society what we stand for.

The Schokland Agreement was an important milestone in

this regard. On 5 July 2007 Michiel Boersma, the Chairman of

the Executive Board, signed this agreement with the Dutch

government on behalf of a consortium of twenty companies,

centres of excellence and non-governmental organisations

in Schokland, a former island in the IJsselmeer. The parties

to the agreement pledged to develop sustainability criteria

for biomass imports, including a certifi cation system. What is

important is that we can offer the guarantee that the biomass

we use at our plants is sustainably produced and traded in

its country of origin. This allows us to make a contribution of

our own towards eradicating extreme poverty and hunger.

And we are promoting a sustainable living environment and

fair trade at the same time.

The Schokland Agreement is part of Project 2015, a project

launched by the Dutch government to make up for the delays

encountered in achieving the eight Millennium Development

Goals. The parties to the agreement have pledged to put in

place an adequate certifi cation system within six years.

During that time, pilot projects will also be carried out in ex-

porting countries to promote local knowledge of sustainable

biomass production.

regional base, regional responsibilities

Essent has traditionally had regional roots and the provincial

authorities and town councils in our original area of opera-

tion are still our shareholders. We owe it to this region to

take responsibility, preferably in cooperation with our share-

holders.

Early in 2007, working with our shareholders, we developed

the Essent Shareholders Energy Conservation Plan. Its aim is

twofold: to curb carbon emissions by conserving energy and

moving towards sustainability, and to reduce our customers’

monthly bill through energy conservation. The Plan focuses

on three target groups: households, our shareholders (with

their buildings, facilities and related non-profi t institutions),

and the corporate market.

We work with each shareholder to draw up a personalised

Conservation Plan, but we also offer them the possibility of

shared implementation to achieve economies of scale.

We have earmarked a multi-year budget for the Plan:

EUR 5 million in 2007 and EUR 10 million in 2008. The budget

for 2009 will be set after an evaluation is conducted in 2008

(for further details, see chapter 7).


Een ongemakkelijke waarheid.Maar ook een uitdagende.

Maatschappelijk Verantwoord Ondernemen

www.essent .eu

staff commitment

A CSR policy can only thrive in a company whose manage-

ment leads the way and whose staff feel engaged with the

policy objectives. CSR warrants debate, about the need for

sustainable operations and about the choices to be made in

the process. In March 2007, to stir up the debate, we sent all

of our staff a DVD of Al Gore’s fi lm ‘An inconvenient truth’.

The fi lm triggered lively discussions within the company

and awareness grew that – as an energy company – we fi nd

ourselves at the heart of an unprecedented change process.

And that is a process that we actively need to mould

and shape.

responsible food choices and in-depth debate

about credibility

In order to further entrench CSR in the organisation and our

day-to-day operations, we organised ten lunch meetings

with staff at various Essent sites between 10 May and 25

June 2007.

During these lunches – where, obviously, responsible food

choices were on offer – staff were invited to express their

views on CSR. The most important conclusion drawn from

these meetings was that we have to put our words into action

within the company as well, and ensure that we get our own

CSR house in order. Examples put forward included reducing

car mileage, making our fl eet of cars more environmentally

friendly, double-sided printing, and offering fair trade coffee.

Another idea that was raised was for staff to volunteer as

energy conservation ambassadors and promote sustain-

ability in their respective communities.

The enthusiasm among our staff justifi ed a number of

follow-up actions. First of all, we analysed the results of the

meetings and broadly communicated our fi ndings through-

out the organisation. We also decided to develop two pro-

grammes, more specifi cally: ‘Sustainability inside’

(Binnengoed, covering CSR in our offi ces) and ‘Essent

carbon-neutral’ (Essent CO2-neutraal, aimed at our own

energy consumption and mobility).

sustainability, inside and out

The Binnengoed programme, which is intended to get our

CSR house in order, proposes a two-step approach.

The fi rst step was to implement a quick-win programme

aimed at raising awareness and delivering relatively easy-

to-achieve results. September, October and November

2007 were campaign months, each with their own individual

theme. September was the month of the hallmarks.

Essent introduced Max Havelaar fair trade coffee and FSC

paper, among other things. October was recycling month,

with special emphasis being placed on the reuse of com-

Poster sent to all staff

together with Al Gore’s fi lm

‘An inconvenient truth’.

Poster announcing the

introduction of fair trade coffee

within Essent.


www.essent .eu

puters, mobile telephones, offi ce furniture and suchlike.

Vitality was the theme of the month in November. In a pilot

carried out at a large Essent facility in Den Bosch, we gained

experience with healthy foods and a company workout plan.

The second step is more strategically oriented and consists

of four stages. First of all, we will take stock of the current

situation (which products and operations do we have), and

explore the savings potential (both with regard to environ-

mental and cost aspects). Next, we will look at the possibili-

ties of replacing existing products with sustainable ones and,

fi nally, we will decide what items qualify for recycling. The

entire programme runs from 2007 to 2009 and is designed to

deliver maximum environmental benefi ts in combination with

cost savings.

In 2007, aside from introducing fair trade coffee, we

achieved several other notable results. We made a start with

double-sided and black-and-white printing. Another high-

light was our offer of used computers to Desmond Tutu, the

South African bishop, in the autumn of 2007 as part of the

Close the Gap project to tackle poverty by bridging the digital

divide with developing countries.

Looking ahead to 2008 we will work to make our catering

and cleaning product groups more sustainable.

CO2 neutrality, a responsibility that comes

with our position

If, at Essent, we want to be recognised as leading the way in

making our communities more sustainable, we will have to

put our own affairs in order fi rst. CO2 reductions and carbon

offsetting are key issues in terms of the environment and

our reputation as a company. If we work hard to offset the

carbon emissions caused by our car fl eet and buildings, we

can bring home our message of sustainability to our custom-

ers and raise their awareness. Our staff also expect us to set

a good example. It is a matter of credibility.

That is why we have launched two action plans. The fi rst one

is aimed at offsetting the carbon emissions caused by our car

fl eet, and the second at reducing energy consumption in our

buildings.

towards a CO2-neutral car fleet

In 2007 the Essent car fl eet (industrial vehicles, leased cars

and charged business mileage clocked up in private cars)

caused around 16,000 tonnes of CO2 emissions in total. Our

previously introduced - rather symbolic - policy of planting

a tree for each newly leased company car illustrates that we

are keeping our attention focused on the need for sustain-

ability. It is now underpinned by a massive carbon-offsetting

scheme involving our entire fl eet of cars. In 2007 the decision

Tamme Wierenga (Essent Manager Information Management),

Marga Edens (Essent Manager CSR) and Olivier Vanden Eynde

(General Manager of Close the Gap) present the 50,000th

computer to Desmond Tutu, the South African bishop.


was taken to offset our carbon emissions of 16,000 tonnes

in full. This involved an amount of EUR 350,000 in renewable

energy certifi cates.

We will, of course, make every effort to reduce car mileage.

We expect further incentives to use train services to reduce

car mileage by 6.5%. Even greater savings would appear to

be feasible by taking additional measures aimed at limiting

business travel through behavioural changes and making

facilities such as video-conferencing available on a larger

scale. Plans are being developed to achieve this.

In 2008 the cost of offsetting carbon emissions caused by

the car fl eet will be regarded as ordinary business expenses.

With this, we have incorporated our CSR policy into our

ordinary business activities.

towards CO2-neutral business premises

In making our offi ce buildings more sustainable, we are

using the same method as the one applied to the Binnengoed

project. First of all, we take stock of the current situation

at each of our sites (energy consumption, contracts, nature

of the buildings, etc.), and identify the opportunities for

energy conservation and limiting carbon emissions. Next,

we look at where we can use renewable energy instead of

conventional energy. Finally, we offset what carbon emis-

sions remain.

www.essent .eu


www.essent .eu

In the fourth quarter of 2007, we began implementing the

fi rst and second stages of the plan by introducing an energy

management system. The system enables us to analyse en-

ergy consumption levels in our buildings and identify areas

where savings can be achieved. We expect to be able to

reduce our energy consumption by 10% to 20% and curb car-

bon emissions further through additional measures. Further

details will probably be available in the fi rst half of 2008.

It could be argued that stage four of the plan is unneces-

sary. After all, if we take stage three of the plan seriously and

use renewable energy across the company, there will be no

CO2 emissions left to be offset. However, the actual situation

is more complex. Biogas is available only to a very limited

extent, green gas is in itself a form of offsetting and generat-

ing capacity for green electricity in the Netherlands is not

keeping pace with demand. Encouraging even more imports

is not one of our objectives. It seems likely, therefore, that we

will have to offset a residual level of CO2 emissions.

As with the Binnengoed programme, we aim to achieve

maximum environmental benefi ts coupled with cost savings.

This is not only good for our wallet, but also provides appeal-

ing examples for external campaigns. Clearly, customers will

more readily invest in environmental care if the measures

taken yield returns.

what others think of us

However hard we try to put in place a sound CSR policy,

we cannot rule out the possibility of overlooking one or two

things, or misinterpreting the expectations of others. That is

why we regularly gauge the opinion of parties operating in

the area of CSR to fi nd out what they think of our policies.

We have placed the dialogue with our stakeholders at the

heart of these feedback efforts. In 2007 we chose to focus on

four issues, i.e. palm oil, emissions reduction, energy conser-

vation and human rights.

The fi rst step was to commission the Good Company re-

search and consulting fi rm to send out questionnaires to

fi ve infl uential stakeholders: the World Wide Fund for Nature

(WWF), the Dutch National Forest Service, two Dutch

nature conservation and environmental protection groups

(Natuurmonumenten and Natuur & Milieu), and Amnesty

International. To ensure maximum objectivity, it was ex-

plained to the stakeholders that they were asked to give their

opinion on the sustainability policies of power companies.

They did not know that the questions were being asked on

Essent’s behalf.

The fi ndings showed that the four environment-oriented

stakeholders appreciated the greater openness on the part

of the energy industry. They also saw encouraging sustain-

ability initiatives in a number of companies.

Otherwise, the stakeholders were mostly critical. They com-

mented that energy companies should invest more of their

substantial profi ts in innovation, sustainability and energy

conservation, and certainly not in coal-fi red power stations.

Using palm oil as a biofuel was considered non-sustainable,

and promoting green gas was referred to as window dress-

ing. Moreover, they felt that energy companies should take

responsibility for the entire energy chain and channel more

efforts into small-scale power generation and energy con-

servation tips. Also, energy companies should go to greater

lengths to fulfi l their social role, for example with regard to

payment arrears.

Late in 2007, on the basis of these fi ndings, we initiated a

dialogue with a number of these stakeholders to share and

explain our views, and to explore in what areas we might join

forces in moving forward. More specifi cally, Essent and the

Dutch National Forest Service will explore ways of expanding

their current alliance through small-scale initiatives de-

signed to bring sustainability closer to the public. As regards

palm oil, we will use the fi ndings of the Blok Committee,

which considers the phased-in certifi cation of palm oil to be

a feasible option (see chapter 5).

In the dialogue on human rights, Amnesty International

urged power companies to look at issues such as working

conditions on palm oil plantations, planting CO2 offset for-

ests in areas where people are forced out of their homes,

and the production of biomass at the expense of food crops.

We believe, however, that our Supplier Code of Conduct

(see chapter 5), which imposes requirements on all of our

suppliers, provides suffi cient safeguards. We have, therefore,


www.essent .eu

decided not to home in on the issue of human rights for the

time being.

The dialogue with stakeholders about CSR is not, of

course, limited to NGOs. Regular customer surveys (house-

holds and corporate customers) and customer forums keep

us apprised of their opinions. We also liaise with our share-

holders; not only during regular meetings, but certainly also

in connection with the Shareholders Energy Conservation

Plan.

It goes without saying that the views of our employees

count heavily in our CSR policy. Our annual staff survey

consistently features CSR aspects. And we are in constant

dialogue with our staff, at the lunch meetings referred to

earlier and during long-distance walks on the Pieterpad trail.

walking our way to sustainability

The Pieterpad trail, a legendary walking trail from Pieterbu-

ren in the northern province of Groningen to Sint Pieters-

berg, a hill near Maastricht in the south, more or less covers

the company’s original area of operation. Because walking

clears the mind and loosens the tongue, we organise walking

trips for groups of employees along the Pieterpad trail (day

walks) to encourage them to speak out on important issues.

In 2007 the walks revolved around the theme of CSR.

To many participants, CSR was initially a very broad and,

hence, somewhat abstract notion. But as the walks went on,

they gradually got to grips with it. It quickly turned out that

there was great willingness to contribute to CSR, and that

many staff underestimated their own potential where CSR

was concerned. Frequently heard comments included:

“I’d like to, but I’m sure my boss thinks it’s nonsense,” and,

most often, “the company’ll have to foot some of the bill

then.” However, our staff proved during these walks that

their infl uence was greater than they had initially expected.

It has led to several great projects and suggestions for

improvement. On one of the walks, we were joined by Profes-

sor Arjo Klamer, Professor of Cultural Economics at Erasmus

University Rotterdam, who put a philosophical angle on the

relationship between CSR and behaviour. The upshot was

that we perform best if we feel part of a group and are emo-

tionally involved with issues.

A visit, on one of the walks, to Ben & Jerry’s, a company

known for its sustainability efforts, showed that Essent can

be proud of the progress we are making.

The overall conclusion drawn from the 18 walks in 2007

was that we must, fi rst and foremost, have faith in our own

capabilities.

Our walkers rolled up their sleeves and got down to some

physical work as well, pitching in and making themselves

useful as a group. In the early autumn of 2007, for example,

they built a trail in the Goudplevier nature reserve in the

Province of Drenthe, and in Maastricht the walkers success-

fully arranged for high-effi ciency boilers to be fi tted at the

Toon Hermanshuis (a home for terminally ill cancer patients).

Walkers also took on voluntary obligations. In 2008 one

group will fi t out the Arboretum in Eenrum (in the northern

Province of Groningen) with a solar power system. Another

group will try to set up a small-scale hydropower system

at a restaurant in Denekamp (in the Province of Overijssel).

The walks also produced many useful tips for our in-house

Binnengoed campaign.

once learnt ...

CSR will thrive only if it embraced by everyone at the compa-

ny. Impulse!, the association of Essent Management Train-

ees, did so whole-heartedly. The young members of Impulse!

joined the Young Leaders for Nature, which was founded

in response to an open letter from the crème de la crème of

the Dutch corporate sector to the newly to be formed Dutch

Cabinet (in December 2006). The open letter was an initiative

of Leaders for Nature and encouraged the Cabinet to pursue

an active government policy on corporate sustainability.

The Young Leaders for Nature subsequently sent an open

letter of their own, saying that they themselves were willing

to make a contribution to their companies’ CSR policy.

The letter was presented to the CEOs of 23 large Dutch com-

panies, including Essent, in November 2007. Early in January

2008, as a follow-up, the Young Leaders for Nature staged

a forum in Utrecht, where they engaged in a debate with

members of the Board of their respective companies. Fifteen

Five members of Impulse!

an affi liate of

Young Leaders for Nature


These actions have led to the fi rm anchoring of CSR in our

formal organisational structure and its integration into our

standard planning & control cycle. CSR is no longer a

maverick policy proposition. Instead, it has become part and

parcel of our day-to-day ideas, actions and reporting

practices.

Essent members of Young Leaders for Nature took the

opportunity to make four solid agreements with the

Executive Board, represented by Rinse de Jong, and with

CSR Manager Marga Edens.

Under the fi rst agreement, the Essent Young Leaders for

Nature will help raise CSR awareness throughout the

company (People). The second agreement involves the

introduction of a CSR funnel that will help to translate ideas

suggested by Essent staff into concrete decisions and

actions (Planet). Under the third agreement, Essent will

review its investments against CSR criteria as well as against

profi tability goals (Profi t). The fourth agreement will see

the Essent Young Leaders for Nature work towards bringing

Essent at the forefront by having the car of the future

power ed by green electricity (Power).

CSR is business as usual

2007 was our fi rst true CSR policy year, which is also

evidenced by the fact that CSR has now become a permanent

feature in our business plans. In the overall Essent Business

Plan 2008 we have, for the fi rst time, included a chapter on

CSR policy and our business units, for their part, were invited

to include a CSR chapter in their respective business plans,

showing what policy and practical input they plan to con–

tribute to our joint CSR policy.


01Outlook

Retrospective

and outlook

more challenges ahead

Although we are very pleased that CSR has become a fully

fl edged part of Essent policies and the day-to-day activities

of our staff, we cannot afford to rest on our laurels. The chal-

lenges – at local, national and global level – are increasing.

Moreover, our ambitions in the area of CSR extend beyond

what we have accomplished so far. There is still much to be

achieved in 2008.

strategy fine-tuning

In 2008 the main aim of our CSR strategy will be to strength-

en CSR as a guiding principle in our strategy, business

policies and day-to-day operations, so as to ensure that

Essent becomes a sustainable energy company.

In all of this, we will continue to adhere to the nine strategic

principles defi ned at the beginning of this chapter. The CSR

Department’s role is to inspire, initiate and coordinate, and

to cascade CSR throughout the organisation by:

■ raising awareness and actively involving our staff and;

■ encouraging the business units to develop commercial

products and services in line with our CSR policy.

Key projects include improving the internal and external vis-

ibility of our CSR policy, gaining acceptance among different

stakeholders, and launching internal and external projects to

spearhead CSR efforts. In practical terms, this strategy

is refl ected in the CSR Department’s plan of action:

energy market

■ 43% of customers will start to use green electricity

(Groene Stroom)

■ 35,000 customers will start to use green for gas

(Groen voor Gas)

sustainability

■ encourage torrefaction* and prepare Essent

for the use of torrefi ed biomass

■ set up new offset projects for green gas

awareness

■ launch a CSR campaign targeting our employees

* see fi gure at page 36

www.essent .eu

19 Essent N.V. 2007 CSR Report › Retrospective and outlook › Outlook

‘How on earth’

placing the world centre-stage

After the summer of 2008 we will launch a major in-house

campaign. Our aim will be to encourage greater awareness

among staff in terms of sustainability, and promote Essent’s

newly defi ned core values. We will need to attribute meaning

to these core values – Pro Active, Accountable, Cooperative

and Delivering – in order for them to be put into practice.

Our core values should guide us and set us on the right track

in everything we do and what we believe in. If we are as

committed to sustainability as we say we are, we must have

the courage to ‘sustainabilise’ our core values as well. Only

then can we expect to be able to fully appreciate the value of

the sustainability pillars underpinning our strategy and will

we be better equipped to act accordingly.

The campaign we have in mind will place the world centre-

stage. The overriding question is what we are going to do

to stop climate change. That is why we have named the

staff campaign ‘How on Earth.’ It revolves around two main

themes: energy consumption and mobility.

We will start by sharing knowledge and then move on to

changing people’s behaviour. Things are bound to get

serious at times, but we have no doubt that the campaign will

make for some enjoyable and festive activities as well. Let us

move forward with fresh spirits and build a shared future.


02www.essent .eu

We regard CSR as business as usual, which is why we apply

the same corporate governance practices as we do to Essent

in general. Our corporate governance policies are enshrined

in legislation and the Dutch Corporate Governance Code;

for details on our corporate governance, we refer to our

fi nancial annual report.

Sound corporate governance is rooted in good business

practices and good governance. At Essent, we take it one

step further, claiming that good business practices are

socially responsible business practices.

And: good governance is socially responsible governance.

These are our principles.

Code of Conduct

The Essent Code of Conduct, which gives guidelines for

our daily actions, is based on our views of good governance

and CSR.

Our responsibilities:

1 Our customers can always depend on us

2 We provide optimum value growth for our shareholders

3 Our employees can count on respect and trust

4 We live up to our social responsibility

Our approach:

5 We operate with integrity

6 We ensure a healthy and safe working environment

7 We ensure that the company adheres to well-defi ned

corporate governance practices

8 We stand for free enterprise and fair competition

9 We set the same standards for our business partners

that we set for ourselves

In our business dealings, we adhere to a set of CSR-related

conditions of purchase, which we refer to as the Supplier

Code of Conduct. With this Code, we seek to guarantee that

our suppliers’ operations are socially responsible as well.

whistleblowers’ arrangement

The whistleblowers’ arrangement offers employees who

suspect irregularities the opportunity to report their sus-

picions without this affecting their employment situation.

Counsellors have been appointed to protect employees who

have reported a suspected irregularity by not disclosing

their identity and overseeing that they do not experience any

adverse consequences in their employment situation.

No reports under the whistleblowers’ arrangement were

fi led in 2007.

Corporate governance

of CSR A number of the about

70 CSR ambassadors

21 Essent N.V. 2007 CSR Report › Corporate governance of CSR

new positioning, new core values

In the autumn of 2007, after the merger talks with Nuon had

failed, we considered our positioning in the market. One of

our key fi ndings was that we need to raise our profi le in the

market as an enterprise that is truly concerned with sustain-

ability and innovation. This has shifted the Essent core values

more towards our corporate social responsibility and the

practical aspects that go with it.

In order to allow ourselves to tackle the new challenges,

we have fi ne-tuned the Essent core values to Pro Active,

Accountable, Cooperative and Delivering. These core values

form a daily source of inspiration for our staff and all our

partners. How do we operate? Well, this is how!

anchoring CSR

As indicated, we want to position Essent as a leading and

sustainable energy company by using our CSR policy as

a leverage. Obviously, it is the Executive Board that has a

policy-defi ning role, but their efforts would be wasted if their

policies were not broadly anchored in our operations. That is

why two actions were taken.

First of all, we formed a CSR Advisory Board early in 2007.

This Board, on which business unit directors, heads of

corporate services departments and specialists are seated,

is chaired by the Chairman of the Executive Board.

The Advisory Board assists the Executive Board by offering

recommendations about CSR policies and policy execution.

Key topics addressed by the Advisory Board in 2007 were the

CSR controls that are in place, the dialogue with our stake-

holders, the extent to which Essent wants to be involved in

projects in developing countries and Essent’s position on the

CO2 emissions market.

Secondly, we appointed CSR Ambassadors early in 2007.

The some 70 Ambassadors, volunteers from all echelons of

the organisation, are the vanguard of CSR within Essent.

They are the fi rst point of contact for CSR in the organisation.

In addition, their job is to identify and inspire. All 70 Ambas-

sadors meet four times per year to exchange information and

make recommendations. They also serve as panel chairs for

the Pieterpad walks. In the spring of 2007 they were closely

involved in organising the CSR lunches.

The result of these two actions is that CSR has already

been pretty fi rmly anchored in our operations. CSR is starting

to become our ‘green’ leitmotiv.

CSR in the Essent Business Plan

We have included a separate CSR chapter containing

company-wide targets in our Business Plan 2008 – which

was drafted in the autumn of 2007 – in order to allow CSR to

take further root in our organisation. In addition, all business


www.essent .eu

units were asked to include CSR targets in their individual

business plans for 2008. These were based on a conversion

of the nine CSR policy spearheads into the activities of the

separate business units.

We will keep close track of the execution of the plan in

2008 and fi ne-tune it where necessary.

Thanks to its broad positioning within Essent, CSR is increas-

ingly becoming a regular aspect of our business, including

the planning & control cycle. It is becoming ‘business as

usual’.

CSR in the Corporate State of the Risk

Essent prepares the Corporate State of the Risk a number of

times per year. It is an aspect of our risk management policy

that gives us an understanding of the key risks to which our

business is exposed and the options that we have to mitigate

them.

All business units and corporate services departments as-

sess their risk potential and the related implications, if any.

This includes operational risks, occupational health and

safety (HSE) risks, economic risks, risks due to changes in

legislation and reputational risks.

In line with the idea that CSR is an integral part of our ordi-

nary activities, we started to introduce CSR aspects to this

risk assessment in 2007. In doing so, we made allowance for

elements in our operations where CSR plays a role and where

risk exposures might exist. One of the conclusions was

that the embedding of CSR in our ordinary activities helps

to identify, understand and reduce potential risks. There is

much to be gained from well-defi ned targets and putting

in place internal process controls.

international alliance

Although it does not come under corporate governance,

a step that ties Essent even closer to CSR is our membership

of UN Global Compact, an international initiative that brings

companies together with the United Nations, labour and civil

society to support ten universal principles in the areas of

human rights, labour, the environment and anti-corruption.

Soon after it was established, we have entered in 2007 the

Dutch Chapter of Global Compact. So far, Essent is the only

Dutch energy distribution company to become a member of

Global Compact.

The CSR report for 2008 will be Essent’s fi rst ‘Communica-

tion on Progress’ report, a CSR report in accordance with the

Global Compact methodology.

03


Structure of the report

and accountability

www.essent .eu

structure

The lay-out of this report refl ects the progress Essent has

made in anchoring CSR in the organisation. Whilst the report

for 2006 was principally a broad and in-depth overview

of overall CSR aspects, this report for 2007 is much more

attuned to material issues and the resulting dilemmas.

In this report, we have maintained the approach based on

the four roles that characterise Essent’s position in society:

a business operator, a market player, an employer and a

corporate citizen. We have foregrounded the most urgent

dilemma that comes with each role.

the business operator

tomorrow’s energy

what do we do and what don’t we do?

the market player

measuring sustainability

how sustainable is palm oil?

the employer

diversity in development

where are those women?

the corporate citizen

regional involvement

sugar daddy or partner?

In addition, this report addresses a number of remarkable

trends and looks ahead to 2008 where this is relevant.

Where the format is concerned, we have basically opted

to publish two reports, a print and an online version. After

all, the Internet allows us to elaborate on developments in

our performance throughout the year and leaves more room

for background information. We post all information about

Essent, our power stations, wind farms and activities on our

website, including the related fi gures. These fi gures ultimate-

ly demonstrate our ambitions, the progress we make

and the level of our success. This print report is a summary

of key issues. For more detailed information, please log on to

www.essent.eu.

accountability

This CSR Report was prepared in accordance with the

principles of the Global Reporting Initiative (GRI). We have

modelled our report on the G3 Guideline for the defi nition

of the key GRI indicators. We refer to our website for a list

of indicators used and details on the application of the GRI

Application Level Criteria. In defi ning the scope of this report,

we relied on the GRI Boundary Protocol – a reference docu-

ment for establishing the boundaries of a social responsibility

report. For the purposes of describing our performance and

disclosing the required information, we reviewed the rel-

evance of our operations, the degree of control exercised by

Essent and the materiality of the information.

scope

Our report addresses the CSR activities of Essent N.V. in

2007. The fact that we are an energy company takes centre-

stage. For this reason, the activities of Essent Waste Man-

agement – a business unit specialising in waste processing

– have only been included to a limited extent. We have not

included our minority interests (of 50% or less) in this report

either. Although we concentrate mainly on the Netherlands,

we do partially report on our German associate swb AG,

a 51% participation. We have also included disclosures on our

wind-related activities in Germany.

The summarised fi nancial information relates to the Essent

organisation as a whole, including associates and activities in

the countries where we operate. Obviously, there are excep-

tions. Being an energy company, we report on energy. That

is why we have taken account of the electricity production of

our associates, in proportion to our shareholdings. The same

goes for Essent Waste Management, which also generates

energy from waste.

We will also highlight our 50% interest in EPZ NV, operator

of the Borssele nuclear power station among other plants,

because of its exceptional nature.

Energy production causes emissions. Therefore, our report

contains the most important – CO2 – emissions data of all our

associates. Not included are the (limited) emissions caused

by Essent Networks due to the transport of gas or the offset of

resistor losses due to the transport of electricity. The emis-

sions caused by waste incineration and waste storage by

Essent Waste Management are not included either. Safety is

Cho

ice

of

da

ta in

clu

sio

n f

or

ea

ch b

usi

ne

ss u

nit

1 Safety data relate to Essent’s own staff and contracted third parties.

2 Energy generation by the Essent Group, carbon emissions, exclusive of emissions by Essent Networks and Essent Waste Management.

Associates included proportionate to Essent share.

3 Staff employed by associates are not included unless equity interest exceeds 50%.

4 Socially relevant activities are attributable to a limited extent only to individual business units. Activities undertaken by swb AG are not included.

5 Relates to CO2 caused by energy-generating emissions by associates whose interests are represented for Essent by the Business Development business unit.

6 Relates to the wind energy activities in the Netherlands and Germany only.

7 Includes the operations of Essent Belgium and Energie:Direct. Relates to the green electricity, Business green electricity and green for gas products.

8 Included in total number of FTes employed by Essent. Not included in other staff data.

25 Essent N.V. 2007 CSR Report › Structure of the report and accountability

www.essent .eu

a concern for everyone at Essent. Our safety performance,

which is expressed in the DART rate, comprises all Essent

business units and swb AG. It does not include the fi nancial

minority interests where Essent has no control over the day-

to-day operations.

Our staff base is perhaps our most important source of

energy. In addition to the number of people (in FTes) that

Essent employs, we also look specifi cally at age composition,

absenteeism, the ratio of male to female employees and a

range of other issues. Our analyses pertain to our own work-

force, but to temporary workers as well. Staff employed by

swb AG in Germany, Essent Belgium en Energie:Direct (both

of which are divisions of the business unit Service & Sales),

the newly acquired Westland Energie Services, our minority

interests and interns are not included in these analyses.

data collection

Our report describes the efforts that we put forth in 2007.

Most of the information contained in this report deals with

the way in which we have embedded CSR in our business

and the dilemmas that we faced in the process. We hosted

a range of consultative talks between all echelons of the

organisation and with various stakeholders; open interviews

give an impression of our stakeholders’ opinions on our ap-

proach to these dilemmas. And on policy-related matters, we

consulted with our workforce, specialist corporate services

staff, business unit directors and the Executive Board. Our

fi ndings from these consultations make up the more qualita-

tive section of the report.

We have also included fi gures and trends, as well as, in

many instances, comparative data. The more quantitative

information originates from standard sources and reporting

systems. The summary of the fi nancial information is based

on our fi nancial annual report, which is published separately.

external validation

It is of the essence that the information contained in this

report is complete, accurate and transparent. That is why

we have asked Ernst & Young Accountants to issue an

Assurance Report on this report. It is currently being

reviewed whether (parts of) the online report could also

be certifi ed.

04Essent as a business operatorwww.essent .eu

in continuous operation

Power stations and wind farms appeal to our imagination.

They are impressive structures and masterly examples of

engineering skills. But they are also the source of power for

society; the place where electricity originates, from where

four-inch thick cables bring electricity to people’s homes.

the place of Power

The power to switch on lights, ignite engines, run computers;

the power to keep things affordable, and the power to do so

as sustainably as possible.

In the Netherlands, Essent is at the vanguard of renew-

able energy generation. We intend to carefully build on this

position. After all, our overall objective is to be a leading and

sustainable energy company. This will involve hard work as

it imposes great demands on the way we operate. We need

to make existing power stations more sustainable. We must

build new power stations using technology that places less

of a burden on the climate. And we will have to achieve maxi-

mum yields from our wind farms, while, at the same time,

guaranteeing the energy supply and keeping it affordable

for our customers.

TOMORROW’S

energyeach power station is a one-off

However impressive and complicated it may seem, electricity

generation is basically a simple process. In fact, every power

station or wind turbine operates like a bicycle dynamo, only

it is bigger. A power station becomes special because of the

fuels it uses and the environmental controls that are in place.

At Essent, we operate three types of large power plants:

conventional coal-fi red and gas-fi red stations, and highly

effi cient combined heat and power plants (CHPs).

The Amer power station and Claus power station were

designed as conventional plants, but we have since substan-

tially improved their sustainability performance. The Amer

power station near Geertruidenberg, for example, co-fi res

a considerable quantity of solid biomass (wood) with coal.

Moreover, a substantial part of the residual heat is used to

heat homes and businesses. The plant is also being fi tted

with a DeNOx system. This fi lters harmful nitrogen oxides

(NOx) from fl ue gasses. The Amer power station has a power

generation capacity of 1,240 MW and heat generation

capacity of 600 MW. The Claus power station in Maasbracht

is a gas-fi red plant made suitable to co-fi re bio-oils. Its maxi-

mum output is 1,280 MW.


the thoroughbred of power stations

CHP plants are a special type of power station. We own a

number of CHP plants, the largest of which is in Moerdijk.

Generating heat as well as power, CHP plants are gentle on

the environment. They deliver high energy effi ciency and CO2

emissions are low. Given the current state of the art, CHP

plants are by far the most effective option for large-scale

electricity generation. However, in order for a CHP plant to be

cost-effective, gas prices must compare favourably to other

fuels. And that has not always been the case over the past

few years.

Our current overall output from CHP plants is 1,560 MW.

When it comes to CHP plants, Essent occupies the number

one position in North-West Europe. Our knowledge of, and

experience with, this technology will become crucial over the

next few years as we face the diffi cult transition to renewable

energy and further measures will be implemented in the way

of energy conservation.

every little helps

Obviously, we also engage in small-scale power generation.

Our dedicated biomass plant in Cuijk has a capacity of

25 MW. The plant fi res solid biomass in the shape of wood

cuttings and wood pellets.

Co-generation plants are important. They are, in fact, small

combined heat and power stations. We are pleased to oper-

ate a large number of them because, like their big cousins,

they have a very low impact on the environment. That is why

we intend to considerably expand our presence in this mar-

ket. Early in 2007 we took a major step in this direction by

acquiring Westland Energie Services, which specialises in

supplying energy to the glasshouse industry. Co-generation

plants are a very attractive proposition in this market be-

cause greenhouses not only need heating and power (light-

ing), but also require CO2 for their crops to grow. Between

them, our co-generation plants put out 160 MW overall.

Another development in this fi eld is the micro-cogeneration

plant, a central heating boiler that generates electricity as

well as heat in homes. Micro-cogeneration plants are mostly

still being piloted.

Electricity is also generated at our waste incineration

plant in Wijster and waste fermentation plant in Groningen.

The joint capacity is 60 MW. The waste incineration plant of

Afvalverbranding Zuid-Nederland (AZN) delivers high pres-

sure steam to the Moerdijk CHP plant. After all, we would

waste a valuable opportunity if we did not make the best

possible use of the heat that is generated by incinerating

household refuse.

27 Essent N.V. 2007 CSR Report › Essent as a business operator › Tomorrow’s energy

14,625

5,320

1,715

589

1,782

5,218

14,496

5,495

1,435

525

1,582

5,458

14,706

5,915

1,262

648

1,631

5,250

CO2 emissions caused by energy generation

2007

2006

2005

www.essent .eu

a little water and ...

Flat as it is, the Netherlands does not offer too many possibil-

ities for hydropower. Essent operates two small hydropower

plants: an 11.5 MW plant on the river Meuse near Linne and

a tiny one (100 kW) on the river Vecht near Gramsbergen.

But our motto is: ‘take care of the pence…’. They also, of

course, allow us to gain experience in this fi eld.

... a lot of wind

In contrast, wind power is a major force in terms of our

overall electricity output. In order to concentrate as much

knowledge and experience as possible in one place, we

have combined our Dutch and German wind power opera-

tions into a single entity, Essent Wind.

In 2007 we successfully added 42 MW to our existing capac-

ity. At the same time, we sold existing wind farms in Germany

with a total capacity of just under 65 MW. We also demol-

ished one of our two wind farms at Eemshaven to clear the

way for a new one. The 40 small wind turbines put out a total

capacity of 10 MW and will be replaced by larger, state-of-

the-art turbines. In total, we now put out nearly 424 MW in

wind power in the Netherlands and Germany, a respectable

amount, but slightly less than last year, so we need to ‘up the

ante’. Over the next few years, we plan to add 250 MW

in onshore projects in the Netherlands, and are counting

on as much as 1,150 MW in Germany.

As for offshore projects, we expect to achieve a capacity

of 400 MW in Germany. One of the new projects involves

replacing 134 wind turbines at Eemshaven by 52 newly

built 3 MW turbines, nearly quadrupling our output there

to 156 MW.

In 2008 we expect to increase wind capacity by 70 MW,

around 44 MW of which will be for own usage. The remaining

part will be sold to others. That is how we can put our experi-

ence to use.

wind power is not a fix-all

Wind power may be important and successful, but it also

has a downside. The more wind turbines are built, the more

diffi cult they are to fi t into the landscape. And, what is more,

offshore wind farms are rather costly. In addition, there is the

general problem of having to maintain near-equivalent back-

up capacity for each megawatt of wind power. After all, the

wind does not always blow, but people always need electric-

ity. Conversely, if during exceptionally stormy nights an elec-

tricity surplus arises in off-peak hours, combined heat and

power stations might have to be shut down. And that comes

at the expense of energy conservation and heat supply.

biomass under fire

It was for these reasons that we decided, quite a while ago,

that we should not rely solely on wind power if we were

serious in wanting to shift to renewable energy resources.

We needed to develop at least one other form of sustainable

energy generation. Something that had growth potential.

With a view to making our operations more sustainable, we

have therefore invested heavily in biomass as a fuel for our

power stations.


738

521

320

760

340

330

743

355

343

CO2 developments in key Essent power stations

2007

2006

2005

www.essent .eu

Solid biomass in the shape of wood chips and wood pellets

is used as a fuel by a dedicated power station near Cuijk,

and co-fi red at the Amer power station near Geertruiden-

berg. Liquid biomass in the shape of bio-oils and fatty acids

is co-fi red at the Claus power station near Maasbracht.

Unfortunately, after a number of highly successful years,

in-house production of renewable energy dropped in 2007.

The underlying causes are explained in greater detail in

chapter 5.

and then there is nuclear power

Essent has a 50% interest in the nuclear power station at

Borssele. The other shareholder is Delta Nutsbedrijven,

a power company based in the Province of Zeeland. The

station’s capacity is 485 MW.

In 2006 Essent and Delta signed a covenant with the Dutch

government. Under the covenant, the Dutch government

allows the nuclear power plant, which technically still has

quite a few years of useful life left in it, to continue to operate

until 2033, thereby preventing capital losses. In exchange,

Essent and Delta will each contribute EUR 125 million to

enable the transition to a sustainable energy management

in the Netherlands. The government will double this amount

and donate EUR 250 million. Essent and Delta will put some

of this amount towards a separate fund. For details, we refer

to chapter 7.

We regard nuclear energy as one of many intermediate solu-

tions on the road towards a fully sustainable energy supply.

We do feel, however, that a nation-wide public debate should

be organised fi rst to look at whether or not the public believe

nuclear power is an acceptable option. In the interim, we

will continue to focus on technological and safety issues so

as to prevent a knowledge lag.


CO204

www.essent .eu

DILEMMA [ 4:1 ]

[ 30/31 ]

But here is our dilemma as a business operator

Business operator/Power

We need to weigh sustainability, affordability

and availability as the priorities of our stake-

holders differ. Can we nonetheless make

a useful contribution to tomorrow’s energy?

Reasons enough, then, to think long and hard about the

question of how we intend to resolve this capacity issue

when it arises.

imports

It does not seem feasible or advisable to us to substantially

increase our imports. All countries on the North-West Eu-

ropean energy market are effectively facing the same chal-

lenge. They all have old power stations that are scheduled

for decommissioning shortly. Germany will be shutting down

nuclear power plants as well. Norway has banned any further

hydropower plants. And long-term contracts to secure inter-

national transmission capacity are prohibited under EU law.

Imports are also a less attractive option because they create

dependency, as well as hampering us in our efforts to con-

serve energy and improve sustainability. In order to ensure

security and sustainability of the energy supply, we will have

to expand production capacity in the Netherlands.

renewable energy

Solar power is too expensive and too uncertain for the time

being to play a key role. A break-through in the development

of affordable solar cells seems likely, but is not expected in

the short term.

And as for biomass, with which we already gained so much

how green are we as an investor?

Power stations do not have eternal life. Upgrading consid-

erably extends their useful lives. The Claus power station

in Maasbracht and CHP plant in Moerdijk are examples in

point. That said, power stations are like cars. However much

you polish and tinker with them, there comes a time when

their technology is defi nitely outdated and their fuel effi cien-

cy is no longer acceptable.

Before that time comes, you need to have thought about

replacement. And about adding capacity, because energy

consumption is likely to continue to rise in the future. Clearly,

we will go all out to conserve energy. If it were up to us, we

would meet the Cabinet’s ambitious target of conserving 2%

per year.

Expectations are, however, that the demand for energy will

increase by at least 1% per year over the next ten years. Add

to that the fact that the Dutch power supply scores poorly

on targets such as reliability, affordability and sustainability

compared with other European countries, or so the Dutch

Energy Council concluded in a recently published report on

achieving a balanced fuel mix. The main cause lies in the ex-

cess number of gas-fi red power stations (which is, of course,

to do with the Dutch gas fi elds in Slochteren), with coal-fi red

stations adding to the problem. And we have little access to

hydropower and nuclear energy.


experience? Sustainability along the supply chain becomes

of ever increasing importance. The rising demand for bio-

mass should not result in additional logging or impact the

production of local foodstuffs. Biomass will therefore con-

tinue to be used mainly as a co-fi ring fuel. We will certainly

continue to use it, although in a supporting role, rather than

in a leading one.

Wind power is an altogether different matter. We could

conceivably use wind power to generate all of the capacity

required. There is great potential in wind energy, especially

at sea. But wind energy comes with a few drawbacks that we

cannot resolve until we have the ability to store energy. One

of the problems is the volatility of wind supplies. In times of

high winds, we should be able to store electricity away for

calm days. The other problem is wind energy output at night.

Because we cannot store electricity at the moment, all of

it must be conveyed directly to the power grid, also during

windy nights. However, people use considerably less energy

at night. As a result, wind power could well eliminate the

demand for combined heat and power during such nights,

despite the fact that CHP plants require steady, round-the-

clock operation to supply heat and as such conserve energy.

This is also known as running on ‘base load’. Generating

extra power for daytime uses is referred to as running on

‘peak load’. This leaves us with two conclusions. The fi rst

one is that any further development of renewable energy

would benefi t greatly from an energy storage system. We

will need to work hard to achieve this in the Netherlands.

The second conclusion is that we will continue to need a mix

of different types of energy production in the Netherlands

for the time being. Channelling all efforts into renewable

energy will push energy conservation and energy effi ciency

into the background. This might also come at the expense

of combined heat and power plants and smaller-scale co-

generation plants. But in the long run, conserving energy is

the most sustainable solution.

need for energy storage

At Essent, we devote many of our innovation efforts to de-

veloping an energy storage system. We are involved, for

instance, in exploring the idea of constructing an energy

storage island in the North Sea, a variation on civil engineer

Lievense’s old plans for the IJsselmeer lake. In the Province

of Limburg, in the south of the Netherlands, we are studying

the possibility of storing energy in subterranean reservoirs

(pumping up water using cheap electricity at night and

letting it run down again – passing through several turbines

– at the more expensive peak periods during the day). Still,

it will be a while before we can put in place a reliable and af-

fordable energy storage system.


Essent N.V. 2007 CSR Report 34

need for base load in particular

At Essent, our gas-fi red output is relatively high. That should

not come as a surprise. As a Dutch company, we were sitting

right on top of the Dutch gas fi elds at the time.

Gas-fi red power stations are by far the best suited to meet

peak demand during the day because they can be precisely

calibrated to demand. They are like gas cookers. You turn

up the heat a little as needed and bring it back to simmering

point seconds later. However, research has shown that base

load capacity, in particular, is what we need in the future,

especially if we want to ensure a reliable and affordable

power supply.

It goes without saying that we will continue to pursue our

successful combined heat and power policy. This is neces-

sary to help achieve much-needed energy effi ciency. But it

will not be enough. Combined heat and power requires the

simultaneous release of heat, which is not always possible.

Moreover, gas prices substantially affect the feasibility of

combined heat and power generation.

hybrid power station

That is where our plans come in to build a hybrid power

station that uses biomass and pulverised coal, which is an

excellent way of combining our knowledge of biomass and

state-of-the-art coal technology. A hybrid power plant is

designed particularly to provide a continuous power supply

35

www.essent .eu

Essent N.V. 2007 CSR Report › Essent as a business operator › Tomorrow’s energy

and, hence, is a perfect solution to meeting base load de-

mand. We are planning for an output of around 800 MW.

Black coal is available in abundance and is extracted in

politically stable areas so prices are fairly stable as well.

Alternatively, we considered building a coal gasifi cation

plant, but this is now proving to be more expensive to build

and less reliable than a pulverised coal-fi red plant, while

output and CO2 emissions are more or less the same.

The new plant will have an effi ciency ratio of around 46%

– compared with up to about 40% for existing coal-fi red

plants – reducing CO2 emissions by around 20%. Because

biomass will account for at least 30% of the fuel mix used by

the plant, carbon emissions will be further reduced by that

same percentage. Moreover, NOx, SO2 and fi ne particles will

be removed from fl ue gases.

We intend to create the technical conditions necessary for

preparing the plant for future capture and storage of CO2

emissions and conduct a study of available options. We will

also investigate ways for even further increasing the share of

biomass in the fuel mix.

The new hybrid power plant will be located in Geertruiden-

berg, as part of the existing Amer-cluster. The site already

has the infrastructure in place to process black coal and

biomass. The transmission capacity needed to sell the elec-

tricity generated is also available. In addition, there is a dis-

trict heating network (connected to homes and businesses in

the wide vicinity), which will be able to absorb residual heat

generated by the plant. This will further improve the plant’s

effi ciency.

follow-up action

Although we will initially focus on meeting base load demand

as a fi rst priority, we will certainly address the challenge of

peak load demand in the future. This could be achieved, for

instance, by developing a new gas-fi red power station in

Moerdijk. We will take all of these issues into consideration.

The next step will be to see whether a new power station is

a viable option. Because we are not the only company in the

energy market that is planning to expand its production ca-

pacity, the situation has not become any easier. The number

of power plant construction companies is limited and prices

are rising sharply, mainly driven by rapid developments in

China. This may have a knock-on effect on the affordability

of the energy supply. This is also an issue which we will factor

into our decision-making. Should we not then be thinking

about nuclear energy after all? Base load! Affordable, reli-

able and clean where emissions are concerned. Although the

debate about nuclear energy is slowly regaining momentum

in the Netherlands, it defi nitely still is a controversial issue.

Environmental pressure groups regard nuclear power as an

unsustainable source of energy and are drawing attention to

safety issues such as the storage of nuclear waste and non-

proliferation. At Essent, we do not outright dismiss nuclear

energy. It might lead to a better balanced fuel mix. But it also

requires substantial investments. That is why we believe

political and public debates should be held fi rst.

When looking at the energy supply of the future, the chal-

lenges that lie ahead are huge. Therefore we and society at

large should put in maximum effort to meet these challenges.

dry

ing

ue g

as

dryingbiomass

fuel

air

> Torrefaction and biomass

Business operator/Power

Improvement potential for biomass deployment

Torrefaction

Torrefaction is a thermal process

designed to increase the energy

density of solid biomass, such as

wood, waste and resi dual fl ows

from the timber-processing and

agricultural industries, and to

reduce its chemical pollution.

In its pro cessing – supply and

incineration – in a power station,

it compares best to coal. This

makes torrefaction an important

potential link in the biomass

value chain. The input of bio mass

as a substitute fuel for coal can

thus be increased sharply,

allowing hybrid power stations

to fi re even more biomass.

This results in further reductions

in carbon emissions from hybrid

power stations. It should come

as no surprise, therefore,that

Essent is actively investigating

the practical feasibility

of torrefaction.

Interviews

retired Professor of Energy Technology

University of Twente

Gerard Hirs

director Essent Trading

Genève

Paymon Aliabadi

“ESSENT I S MARKET LEADER IN DEVELOPING RENEWABLE FUELS, AND INVESTS IN TECHNOLOGY

utilising these fuels. Trends on the energy markets affect each investment decision that we

take. Unfortunately, we are currently seeing an accumulation of market distortions at regional,

national and global level. These developments have an adverse effect on the opportunities that

we have to increase our renewable energy production. Let’s just mention a few issues we

encounter in developing a hybrid coal- and biomass-fired power station. Emissions and biofu-

els are especially important in making such an investment.

THE CURRENT MARKET FOR CARBON EMISS IONS TR ADING HAS FAI LED IN A NUMBER OF AREAS

since the introduction of the allocation system for emissions rights by the European Union.

Based on this system, industrial sectors have been allocated a number of carbon emissions

rights. If they emit more carbon dioxide than they have been allocated, they need to purchase

additional rights on the market. I would prefer a system of auctioning off these rights instead of

allocating them, because an auction does not work to the advantage of the traditional emitters

of large quantities of CO2. This would truly create a market price for carbon emissions. Even if

such a system can’t be introduced overnight on a global scale – due, for instance, to extension

of the mechanisms resulting from the Kyoto Protocol – the European Union should nonetheless

seek to implement it!

IT GOES WITHOUT SAYING THAT THE COSTS OF CARBON EMISS IONS WILL INCREAS INGLY BE

incorporated into consumer energy pricing. Until now, no international consensus has been

reached, however, about the extent of these costs. The second problem here is that our sector

doesn’t have a clear view of the market after the Kyoto Protocol expires in 2012. Given the

investment required for a hybrid power plant, we need to know how the costs of carbon emis-

sions will develop, not only in the coming years, but also in the next few decades.

S INCE THE USE OF B IOFUELS REQU IRES THE DEPLOYMENT OF DEVELOPING TECHNOLOG IES,

start-up subsidies are vital. This also applies to other large renewable energy technologies,

such as wind and solar power. All these applications offer economies of scale, thereby lower-

ing costs, if only the technology is sufficiently broad-based. Until then, inconsistent subsidy

policies of the different national governments form an impediment that is not easily overcome.

In the US and Europe, local political interests or pressures from lobby groups seem to have

triumphed over common ecologic and economic sense. The result is a patchwork of different

subsidy regimes and legislation that stands in the way of free market forces. And that’s what’s

disheartening investors.

I WOULD REALLY LIKE TO SEE NATIONAL GOVERNMENTS COLLABOR ATE IN DEVELOPING A SUBS IDY

system that is applied consistently and has specific regard for the long term. Emerging biofuel

technologies are like young plants; they need care and a certain protection against the disci-

pline of the international energy market. The enormous volatility we see in the price of conven-

tional, fossil fuels can change a project from a successful undertaking to a reckless, loss-mak-

ing activity overnight. As a trader, you can sort of control this market volatility, but it can be

disastrous for long-term investments in renewable value chains. Subsidies should make allow-

ance for this market volatility and have longer effective periods. At present, the lack of consist-

ency in subsidy systems for biofuels and renewable technology forms the largest threat to

private-sector investments. And that uncertainty also affects us when we take decisions about

long-term investments that are supposed to benefit our shareholders and the environment.

ESSENT I S F IRMLY COMMITTED TO SUSTAINABILITY. BUT WE CAN’T OFFER ECONOMICALLY

responsible solutions under our own steam. We need to forge alliances with governments and

address inconsistent legislation and subsidy policies. That will allow us to do so much more in

the way of renewable energy. To start, these alliances are needed to rally support for invest-

ments in a hybrid power station.”

Paym

on

Aliabadi

“WHEN A DECIS ION I S TAKEN TO BU ILD A NEW POWER STATION, THE TYPE OF FUEL AND THE

method of power generation are two major considerations. Coal has come in for a lot of public

criticism of late, despite the fact that there are enough stocks to last for around 1,000 years.

The fact is that coal is in plentiful supply, its price is stable and it requires only a small amount

of energy to mine and transport. Coal has the added advantage of a fairly constant basis of

comparison for energy-saving and reducing carbon emissions. In other words, you don’t have

to work harder and harder at the business of mining coal. In that sense, coal is developing in

the opposite direction to that taken by other fuels: coal-mining has gradually become easier,

not harder, in the course of time.

LOCATING NEW SOURCES OF OTHER FUELS, ON THE OTHER HAND, I S SOMETH ING THAT REQU IRES

more and more energy. The problem here is that new sources are proving more and more

difficult to find. In the case of oil and natural gas, for example, the amount of energy absorbed

by production and transport is on the rise. More and more energy is lost per unit of product

during the journey from the source to the consumer. Dutch households, for example, will no

longer get their gas from local gas fields in the future. Rather, supplies may well come in the

form of liquefied gas transported from the Barents Sea or Qatar. Producing, compressing and

transporting gas are all high-energy activities, resulting in up to 30% of output being lost

before it gets here in the first place. Anyway, in the future, gas from the local gas fields will no

longer come to the surface just like that; electricity consumption is rising. Even in the

Schoonebeek oilfield in the Netherlands, 30% of the output is needed just to get the oil to the

surface. The comparative figure for coal is less than 10%.

In other words, all the savings you make by using a high-efficiency gas-fired central heating

system and setting your thermostat at a lower temperature are immediately undone by the

energy you need simply to produce the gas. As a result, producing gas and oil from new

sources will save much less energy and make much less of a difference to CO2 emissions than

politicians and policy-makers are hoping. In fact, the difference between the environmental

impact of oil and natural gas on the one hand and coal on the other, is only small. These are all

factors that you’ve got to take into account when selecting a fuel for a new power station.

B IOMASS I S A COMPLETELY DI FFERENT STORY. B IOMASS ABSORBS CO2 BY A PROCESS OF PHOTO-

synthesis, thus keeping it out of the atmosphere. Provided it remains under the ground for long

enough, it can turn into coal of its own accord. In other words, natural gas, oil and coal are all

part of a CO2 cycle lasting many millions of years. When biomass degrades on the earth’s

surface or is used as a fuel, the CO2 stored inside it is immediately released. So allowing wood

in a forest to rot away is a dreadful waste. Deliberately composting rotting wood is in fact even

worse. It would be better to keep the biomass and hence ensure that the CO2 stored in the

biomass stays where it is.

US ING BIOMASS AS A SUBSTITUTE FOR FOSS I L FUELS MEANS, THEREFORE, THAT THE CO2 STORED

in the biomass is released back into the air. The use of biomass as a fuel is still very much in an

embryonic stage. Gasification has not been successful to date, and power stations like the one

in Cuijk that fire exclusively on biomass have only a very low energy efficiency, at around 20%.

In fact, all you’re doing is setting off a sort of controlled forest fire! In that case, it’s better to

store the biomass and use coal as a fuel, as it’s more efficient. The only way in which biomass

can be used efficiently is by co-firing it in a large, modern coal-fired power station. This is

twice as efficient as the process used in the power station in Cuijk. Although CO2 is still

released into the atmosphere, the good news is that the power station makes much better use

of the energy value represented by the biomass. And this is why Amer 10 is such a good idea.

HOWEVER, FUEL I S NOT THE SOLE CONS IDER ATION. THE GENER ATION TECHN IQUE USED I S ALSO

a big factor. We have now gained a great deal of experience with coal gasification, a technique

that was first used in the 1990s. Although there were certain teething troubles, the method is

now working well. The staff of Essent have played a big part in this success. I can imagine that

another option alongside coal gasification would be combustion in modern coal-fired power

stations. Although both methods would have to comply with environmental laws and regula-

tions, I would expect coal gasification to be more efficient and also to do better from a compli-

ance aspect. These are both points one has to weigh up, of course, against the cost of con-

struction. However, a higher energy efficiency would theoretically justify a larger investment.”

Gera

rdH

irs

GERARD HIRS

PAYMON ALIABADI

“THE WORLD WIDE FUND FOR NATURE (WWF) STANDS FOR BIODIVER S ITY AND VAR IETY OF LI FE.

Biodiversity has come under tremendous pressure due to climate change. Although climate

change is caused by human activity, the good news is that we can change our actions, for

instance by reconsidering our behavioural patterns and using technology sensibly.

OUR ALLIANCE WITH ESSENT I S ROOTED IN A NUMBER OF STR ATEG IC TARGETS. WE AGREE

that the average temperature should not rise by more than 2 degrees this century. We also

subscribe to the ambitious European and Dutch climate goals, i.e. a 20% reduction in CO2

emissions in 2020. But obviously, we would like to see more. Here’s where friction comes in.

Businesses should not let short-term gains prevail over what society needs to do to resolve

the climate issue. WWF plays a role in that debate, trying to encourage authorities, citizens,

businesses and shareholders to take balanced and sensible decisions together.

THE ENERGY I SSUE I S CLOSELY INTERWOVEN WITH THE CLIMATE I SSUE. AND ALTHOUGH WWF

doesn’t know about energy generation, we are experts in biodiversity. That’s why we need to

find solutions together and develop an ambitious climate strategy. If we look at technology,

we need a proper assessment framework. Unfortunately, we are still highly dependent on

fossil fuels in the Netherlands. Just think: if we take emissions produced by an efficient

gas-fired power station as the norm, it doesn’t really matter how you shape the energy

supply of the future, as long as we stay below the norm and our carbon footprint becomes

smaller.

It would have to be investigated whether a hybrid power station meets this norm. But we

can’t imagine Essent building a conventional coal-fired power station. That would knock the

wind right out of the government’s green policy. And I don’t think this meshes with the

responsibilities of Essent and its shareholders.

BU ILDING CONVENTIONAL COAL-F IRED POWER PLANTS I S A B IT LIKE PLAYING F INANCIAL

russian roulette. The price of coal might be low now, but we also have to make assumptions

about the future cost of carbon emissions. That’s why WWF is in favour of emissions trading.

The real environmental damage can be assessed by attaching a price to CO2. This is perhaps

more important than the price of coal. Looking at the cost of energy, you need to consider

the big picture.

WE ALSO HAVE TO WIDEN OUR HOR IZONS BEYOND THE NETHERLANDS WHEN IT COMES TO

thinking about the energy supply of the future. There are much bigger environmental gains

to be achieved outside the Netherlands! Over the next few years, hundreds of simple coal-

fired power stations will be built in emerging economies such as China and India, without

facilities for the capture and storage of CO2. So we have a double motive for critically

reviewing the technical options. Our innovations also need to be of value outside this coun-

try, so we have to be able to export our knowledge. We have that responsibility as a rich

nation. At the climate change conference in Bali, the adage was: don’t lay down the law for

other countries, but help them find solutions.

THE STOR AGE OF CARBON EMISS IONS I S ONE SUCH SOLUTION. OF COUR SE THERE ARE MANY

questions surrounding the capture and storage of CO2; we have to critically look at the

availability of this technology, its degree of sustainability, safety issues and costs. I feel that

the right know-how for the technical feasibility is available in the Netherlands. But a single

enterprise can’t be expected to deal with this alone. It requires consultations between busi-

nesses, the government and societal organisations, such as WWF. It goes without saying

that WWF does not set the rules or choose a technology, but we do need to engage in

debate about how to achieve the climate goals.

ULTIMATELY, CO2 STOR AGE I S A TR ANS ITION TECHNOLOGY ON THE ROAD TO A TRULY

sustainable energy supply. Unfortunately, the one perfect solution has not presented itself

yet, so that we need to continue to experiment with technologies. We should keep from

being dogmatic and not outright dismiss any technical options. It doesn’t matter how we

achieve a reduction in carbon emissions, whether through co-firing biomass in a hybrid

power station, through heat regeneration or storage of CO2, as long as we achieve that goal.

In my opinion, wind, biomass and solar energy are ultimately the only truly sustainable

energy sources.”

Johan

van d

e G

ronden

RICHARD SCHMÖLZER

JOHAN VAN DE GRONDEN

“AT OUR FELLOW SUBS IDIARY KOLLO S I LICON CARBIDE IN DELFZIJ L, WE MANUFACTURE S I LICON

carbide (SiC), a material with a high breakdown strength that is used in particulate filters,

abradants and incinerators. Silicon carbide is formed by heating a mixture of sand and coke

to more than 1,700 degrees Celsius. This process is extremely energy-consuming; we’re in the

Top 20 of bulk consumers. The increase in energy cost would have got us into trouble in 2006

if we hadn’t changed our working methods. Because we can’t survive using peak-price

electricity during the day, we now start the reaction process during cheaper off-peak hours.

At the end of 2007 Kollo Energie signed a suitable bespoke contract with Essent for this pur-

pose: up to and including 2018 we will be supplied with three million MWh worth of electricity.

At Kollo, we’re more than happy with this.

WE’RE TALKING ABOUT CONVENTIONAL ELECTR IC ITY. OF COUR SE WE WOULD PREFER GREEN

electricity, although we’re already the cleanest and most energy-efficient silicon carbide plant

in the world. We’re aware that our large-scale use adds to greenhouse gas emissions, but

green electricity is simply too costly for us at this time. It’s one to two euros per MWh, and

our competitors are located in countries such as South Africa, Ukraine and China. I hope and

expect that we’ll be able to start using green electricity after all within five years’ time.

IN MY OPIN ION, ESSENT COULD BE EVEN MORE ACTIVE IN P IONEER ING SUSTAINABILITY

initiatives. True, Essent already offers consumers green electricity for the price of conventional

power and that’s a good thing, but what a true statement it would be if they were to switch all

their customers to green electricity as a standard – although I don’t know whether enough

sustainably produced electricity is available to do that.

I FEEL THAT THE PLANS FOR A NEW COAL-F IRED POWER PLANT DON’T MESH WITH SUSTAIN -

ability ambitions. Opting for coal is opting for money. I understand the dilemma facing energy

companies, but they have to ask themselves what’s more important: sustainability or afford-

ability? Personally, I prefer to see a wind farm on the horizon rather than smog from carbon

emissions. What’s more, affordability is a relative notion: instead of complaining, as a busi-

ness, that energy costs have gone up, you could try to reduce your energy consumption or

change your production process. And that’s exactly what the Kollo Group has done.

I DON’T TH INK THAT AFFORDABILITY SHOULD PREVAIL OVER SUSTAINABILITY. WE CAN’T SELL

that to future generations. We will have to find a mix where we utilise natural sources of

energy such as the sun, water, wind and biomass to their full potential, even though renewable

energy is currently more expensive per MWh than coal-generated electricity. Nuclear energy

is also a cheap and carbon-neutral alternative, but it has negative connotations in this coun-

try. Be that as it may, I would prefer a nuclear power plant in this country, under Dutch control,

to one in a country with some sort of dubious regime.

ULTIMATELY, WE CAN’T ESCAPE HAVING TO EMBR ACE SUSTAINABILITY. I SEE GREAT POTENTIAL

in the cradle-to-cradle principle where all material outputs and inputs are seen as technical

or biological nutrients (waste = food). We should take the same approach to energy. Customer

and supplier should both accept responsibility. This is quite a challenge for the energy sector:

do they have to wait for the demand or create it themselves? No one wants to pay more – nor

do we. I believe that Essent – as the largest producer of green electricity in the Netherlands –

should take the country by the hand. And we will follow where they lead us.”

Ric

hard

Schm

ölz

er

managing director Kollo Energie B.V.

Appingedam

Richard Schmölzer

general director of WNF, the Dutch chapter of WWF

Zeist

Johan van de Gronden


Essent as a market player

profits: do they make you rich or green?

Energy companies have a duty to offer consumers a reliable

and affordable supply of energy. At the same time, they must

also operate in a sustainable manner. Not doing so means

not taking your social responsibility seriously enough.

These objectives are all valid enough, but are they also

compatible with each other? The answer is: yes, they most

definitely are! The fact is that a good energy company is a

profitable energy company. Making a profit allows it to offer

its customers a reliable, affordable and sustainable sup-

ply of energy. Profits are good news for everyone, including

our (public-sector) shareholders, who receive half of these

profits in the form of dividend each year. In short, a business

needs to make a profit in order to achieve its aims.

But does this mean scrutinising every step you take in terms

of its effect on corporate profits? Yes, actually, it does. The

point is that a company should not take action that does

not help it to make a profit. That’s why it’s so important for a

business to develop a good nose for activities that are intrin-

sically profitable. Here at Essent, this is an aspect to which

we devote a great deal of attention. Indeed, we have already

made a number of vital discoveries in this connection. One of

these is that satisfied customers are good for profits. Another

is that dedicated staff are also good for profits. Clearly, you

do not make much money from dissatisfied customers who

take their custom elsewhere, or from unmotivated staff with

a rulebook mentality. In other words, two basic conditions

for making a healthy profit are the presence of satisfied

customers and staff who are committed to your cause.

The problem is that no two people are the same: different

people have different desires, and this applies just as much

to our own customers and staff as it does to people in gener-

al. Some people set great store by reliability, whereas others

regard affordability as the most important consideration. Yet

others cite sustainability as the main factor in the equation.

And there is an ever-expanding group of people who reckon

we should do equally well on all three aspects.

Which brings us back to where we started. In order to earn

enough income to provide our customers with a reliable,

affordable and sustainable supply of energy, we need to do

our very best in all these various areas. That is how it works

when you are a market player. In fact, it is pretty simple when

you think about it.

So do reliable, affordable and sustainable automatically go

hand in hand with each other?

No, not necessarily. It is something you need to work on.

In some cases, you need a bit of help to get you there.

www.essent .eu

39 Essent N.V. 2007 CSR Report › Essent as a market player › Weighting sustainability

Green electricity contracts

31-12-2007

31-12-2006

872,004

881,253

Business green electricity contracts

31-12-2007

31-12-2006

55,100

53,292

www.essent .eu

HOW GREEN ARE WE?

green electricity

We are the people who invented green electricity (Groene

Stroom) over ten years ago. This we did in collaboration with

the World Wide Fund for Nature (WWF). Green electricity is

the name given to electricity generated from natural sources

such as wind, water, the sun and clean biomass. Green elec-

tricity is CO2-neutral, which means that it does not contribute

to climate change. Consumers do not pay any extra for our

green electricity.

At the end of 2007, we had 872,000 consumers of green

electricity on our books, representing an impressive 43% of

all our electricity consumers. The number of green electricity

users remained stable in 2007 compared with 2006.

Our Groen Zakelijk electricity is green electricity for busi-

nesses that are serious about their social responsibility. We

had registered 55,000 business green electricity users by the

end of 2007.

Right from the outset, our guiding principle has been that

we should produce as much green electricity as possible in

our home country. The problem is that imports do very little

to reduce CO2 emissions, given that they rarely lead to any

extra production of sustainable electricity in the countries

of origin. We can help to build a sustainable future only by

effectively reducing our consumption of fossil fuels.

We guarantee that green electricity is produced from fully

renewable energy sources, i.e. wind, water, landfi ll gas and

clean biomass. The latter is taken to mean wood cuttings

from forests and municipal green spaces, untreated wood

residues from the timber processing industry, and palm oil.

In other words, green electricity does not include power

generated from relatively dirty products, such as kitchen and

garden waste and sewage sludge. As a further consideration,

we do not sell more green electricity than we can produce

ourselves or purchase from other sources. This is an aspect

that we watch very closely: after all, we want to be sure that

we can obtain the necessary Guarantees of Origin in relation

to the green electricity we sell to our customers.

In November 2007, the Roundtable on Sustainable Palm Oil

(RSPO) adopted a set of criteria for the sustainable produc-

tion of palm oil. These criteria are now being used as the

basis for a system of certifi cation. At the end of 2007, we de-

cided to use only 100% certifi ed palm oil residues as biomass

for the production of renewable energy.

green for gas

Green for gas (Groen voor Gas) is the name of the environ-

mentally friendly alternative to natural gas that we devised in

collaboration with the World Wide Fund for Nature (WWF).

Using their own gas consumption fi gures, we can compute

for each of our customers exactly how many kilos of CO2 they

emit into the atmosphere through their chimney. For a small

fee, we can help the customer in question to fully offset his

or her CO2 emissions. This they can do by planting trees, for

example, as trees convert carbon dioxide into oxygen. The

trees are planted in plantations with the Forest Stewardship

Council (FSC) stamp of approval.

www.essent .eu

Green for gas contracts

31-12-2007

31-12-2006

24,944

15,345

Another way of offsetting CO2 emissions is by investing in

more effi cient and renewable power-generation technology,

such as a new wind farm in New Zealand.

All these projects comply with UN guidelines and the

WWF’s Gold Standard. Every year, an independent auditor

checks whether consumers’ aggregate CO2 emissions have

been fully offset.

Green for gas is proving a popular product, and the number

of users rose by 9,600 in 2007 to 25,000. Early in 2007, we

launched business green for gas especially for the business

market.

Double Green

Double Green (DubbelGroen) is the logical result of teaming

up green electricity with green for gas. It is a way of offering

our customers an opportunity to keep all their energy con-

sumption CO2-neutral.

feed-in tariffs for consumers

Some of our customers are themselves pioneers – those

who use solar panels to produce their own renewable power

providing a case in point. It is with these people in mind that

we devised a special feed-in tariff, in the knowledge that

there are times when they produce more electricity than they

actually need. The surplus is returned to the power grid, and

we pay them a fee for this. This is a good way of encouraging

small-scale use of sustainable power generation.

energy conservation

Energy conservation is another priority, alongside sustain-

able energy production. After all, the less energy you use

in the fi rst place, the less you need to replace by energy

produced from renewable sources. After all, let’s get real:

it is not exactly going to be easy to meet the government’s

target of ensuring that 20% of all the energy consumed in

the Netherlands is produced from renewable sources within

the next 12 years, especially if the general trend is for people

to use more and more power. A recent report published by

the Energy Council (on the fuel mix) again also stresses the

urgent need for energy conservation.

In order to encourage our customers to save energy, we

have devised a special Energy Conservation Plan for private

consumers and an Energy Conservation Service for corpo-

rate clients. The idea behind the Energy Conservation Plan is

that it should act as a big incentive for customers to reduce

their energy consumption. It is not just about saving the en-

vironment; it is also about saving money. Remember: afford-

ability is one of our objectives.

We help our customers fi nd ways of being economical with

energy. The fi rst step involves fi nding out exactly how much

energy they use. Once the fi gures are available, we then

make a series of suggestions for conserving energy. Where

necessary, we remove certain obstacles preventing con-

sumers from investing in energy-saving techniques, and we

supply handy tools that they can use to monitor their energy


www.essent .eu

consumption once they have implemented our recommenda-

tions. In other words, the Essent Energy Conservation Plan is

good news both for the environment and for our customers’

wallets.

The Energy Conservation Service works in a similar way, but

is targeted at corporate customers.

In 2007, we mounted a number of campaigns in the consum-

er and small-fi rms markets highlighting the importance of

conserving energy. One resounding success was the ‘socket

module’, which shows just how much energy various house-

hold appliances use when they are left on stand-by.

together with partners

Like the WWF, the Dutch National Forest Service is a key

partner of ours. They are also very useful people to work

with: after all, it is all very well talking about biomass, but it

has to be available in the fi rst place. In partnership with the

Dutch National Forest Service, we are pioneering the use of

wood cuttings and residues as a sustainable fuel. The Dutch

National Forest Service wishes to promote the use of Dutch

wood as a renewable fuel. We worked together in designing

an itinerant exhibition called ‘Fascinating Forests’, which

shows the whole production chain from tree to green elec-

tricity, highlighting the environmental benefi ts.

and what is the government up to in the meantime?

The government announced at the end of 2005 that it was

planning to review the MEP grant scheme (set up under the

Electricity Production Environmental Quality Act). It was

clear from the announcement that grants awarded for bio-

mass projects would be subjected to particularly close scru-

tiny. In the summer of 2006, the government subsequently

decided to reduce the value of certain grants. There were big

cuts in the government grants formerly paid for the co-fi ring

of vegetable oil and non-wood agricultural residues. As a

result, new projects using this type of biofuel are no longer

viable (as we have already reported elsewhere in this report).

This is a shame, as the decision has put the lid on a promis-

ing new development that was still in an embryonic stage

and on which a great deal of further research still needed to

be performed. Moreover, we have been trying for some time

to draw public attention to the value of agricultural residues

as a fuel. We believe that the government should in fact be

stimulating their use as a biofuel, particularly as they come

with very few drawbacks worth mentioning. After all, we are

talking about genuine waste products that are not grown for

their own sake and which do not therefore displace other,

more important crops. This is a completely different situation

from that applying to the production of corn for use as bio-

diesel, as this takes up large tracts of land previously given

over to potatoes, wheat or rice, and may even pose a threat to

supplies of animal feed.

The fact is that agricultural residues complement rather

than compete with food production. Coffee husks are a good

example: if they are not used as a biofuel, they’re simply

thrown away. This is a tremendous shame.

Obviously, we were able to continue work on other projects

that remained eligible for MEP grants. However, with no

sign of the plans for a new grant scheme for encouraging

investment in renewable energy production materialising

in the near future, research into new sustainable biomass

fl ows came to a halt. We are now expecting the Minister of

Economic Affairs to present new plans during the fi rst few

months of 2008. In the meantime, the energy companies and

other parties involved in the use of biomass have continued

to press hard for the adoption of sustainability criteria

(such as the criteria for the production of sustainable palm

oil, which were ratifi ed by the Roundtable on Sustainable

Palm Oil in November 2007).

decline in output of green electricity

We were hit hard by the decision to end the MEP grant

scheme. Grants are needed in order to identify and test new

forms of biomass, to enable researchers to discover cleaner

or alternative technologies, and also to support sustain-

able electricity production. The ending of the grant scheme

accounted for half the decline in the production of green

electricity in 2007. In fact, the decline was so marked that

we were actually compelled to import green electricity in

order to meet our customers’ needs. And as we have already


in GWh 2007 2006 2005

Sustainable energy generation by the Essent Group

Wind energy 753 696 672

Hydropower 34 33 29

Solar power 0.01 0.05 0.05

Landfi ll gas and biogas 48 50 65

Stand-alone clean biomass 158 162 174

Fossil replaced by clean biomass 1,135 2,476 2,525

Of which

Solid biomass 1,069 946 1,236

Liquid biomass 66 1,530 1,290

Other biomass (e.g. waste incineration) 386 341 285

Total 2,514 3,757 3,750

Please note: Associates included proportionate to Essent share

www.essent .eu

explained, imported green electricity does little to further the

cause of sustainable power generation.

The other half of the decline stemmed from our decision

(pending the results of the study performed by the Blok

Committee) not to co-fi re palm oil in the Claus power station.

This is a point on which we will be elaborating later on in this

chapter. Against this background, it is clear that the develop-

ment of sustainable energy production requires consistency

in government policy, i.e. government policies on sustainable

energy production need to remain stable for a number of

years.

Businesses will be reluctant to invest if policies and grant

schemes change every few years.

sustainable energy production: what and how much?

We produce sustainable energy from a variety of sources.

The bulk of the output (alongside wind farm production)

comes from our power stations, which are fi red by various

forms of biomass.

The Amer power station, for example, co-fi red no less than

half a million tonnes of biomass in 2007, producing around

935 GWh of green electricity in the process. This is enough

to meet the energy needs of over 265,000 households. The

greater part of the biomass used by the Amer power station

consisted of wood pellets (made from compressed cuttings)

and sawdust.

Of the solid biomass, i.e. all the mentioned forms of biomass

apart from bio-oil, 48% is Green Gold Standard Label-certi-

fi ed (see fi gure on page 48).

tireless search

We are constantly on the lookout for ways and means of

boosting the effi ciency of the biomass we use. For example,

technological research has shown that we can raise the

calorifi c value of biomass by subjecting it to thermal pre-

processing (a process known as torrefaction). This means

greater effi ciency and hence more green electricity.

Another aspect of the use of biomass is the doubts that have

been expressed in recent times about the security of future

supplies. We are likely to see a surge in demand from around

the world, whereas supplies are likely to remain broadly

stable. In other words, there are limits to the future growth

in biomass use. It is against this background that we are

continuing our tireless search for new renewable fuels. The

need to place our energy production and consumption on

a sustainable footing represents a huge challenge. At the

same time, the amount of time and resources available to us

for quickly locating large sources of sustainable energy are

relatively limited. We clearly need to investigate every possi-

ble avenue and to be resourceful and innovative. We need to

try out every available option, and retain only those that are

genuinely viable. One of the possible sources of energy we

are currently looking at, for example, is algae. It is all still very

much in the exploratory stage, but looks as though it could

be an attractive option.

coffee, anyone?

Another option, and one that is now in a more advanced

stage, is the use of coffee husks as a fuel. Husks are the


1,432,132

68,440

37,051

260,404

1,065,180

1,057

2,601,491

1,496,040

60,227

172,144

750,680

112,400

Essent biomass portfolio

2007

2006

www.essent .eu

outer shells of coffee beans, and are a waste product of

coffee production. They offer great potential as a means of

replacing fossil fuels in power stations. There is no downside

to this particular biomass fl ow: no trees need to be felled to

produce them, the husks are produced in a responsible

manner and do not form part of the food chain. In other

words, they are biological waste pure and simple, but with

a high calorifi c value. Working in partnership with a develop-

ment organisation called Solidaridad, we have now started

trials with the use of coffee husks as biomass. We buy the

husks from Brazilian farmers, who are paid a fair price for

them, based on the Fair Trade principles. Following an inten-

sive period of preparations in 2007, the fi rst shipload of cof-

fee husks arrived in the Netherlands early in 2008. The husks

will be used in the Amer power station as a co-fi ring fuel in

the production of sustainable energy. Exactly how great a

proportion of the fuel intake they will be able to account for

should become clear during the course of 2008.

responsibility for the entire supply chain

CSR is all about accountability, about reporting on every-

thing we do and do not do, on all our products and services,

from the fi rst to the last step. In other words, CSR covers

the entire supply chain. We cannot afford to bury our head

in the sand. By implication, we must be ready to account

to our customers, our staff, our shareholders, as well as to

interest groups and government organisations, at any time.

We must be ready to report on origins, environmental impact,

affordability, reliability, safety and the potential side-effects

of our products and services.

Because we are serious about our responsibility, we expect

our suppliers to meet high standards in turn. It is with good

reason that one of the provisions of our Code of Conduct

states that we expect our business partners to meet the same

standards we set for ourselves. The criteria our suppliers are

expected to meet are set out in detail in our Supplier Code

of Conduct. The main ingredients of this code are compli-

ance with laws, regulations and human rights, environmental

protection, integrity and transparency. This responsibility

for the entire supply chain applies across the board to all our

activities in relation to sustainability.

Our Supplier Code of Conduct (SCoC) has now become a

standard feature of all contracts with suppliers. We are plan-

ning to publish a revised version of the code in 2008, which

will be aligned even more closely with our corporate policies.

The new version will include additional provisions on the

reduction of CO2 emissions and energy conservation meas-

ures. It will also include a compliance provision, under which

we will be entitled to check whether suppliers are indeed

operating in accordance with the code.


05www.essent .eu

DILEMMA [ 5:1 ]

[ 44/45 ]

Market player/Pro t

Given our responsibility for the entire

supply chain, what is our view, as a market

player, about the use of palm oil as biomass?

In essence, it’s all about striking a balance

between fi nancial and environmental

considerations.

CSR means resolving dilemmas

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palm oil: a special case

When we fi rst started using biomass – mainly wood residues

at fi rst – for producing green electricity at the end of the

previous century, we immediately designed a track-and-

trace system, not just to provide guarantees about the origins

of the biomass, but also to enable us to set specifi c sustain-

ability requirements. It was this system that formed the basis

for our Green Gold Standard Label.

The public response was enthusiastic. The new technol-

ogy appealed to the popular imagination, and the dedicated

biomass power station in Cuijk was hailed as a model of good

future practice.

The mood swung, however, when we started using palm oil

in the Claus power station to generate green electricity.

Palm oil was an excellent biofuel that was sold relatively

cheaply on the world market. We believed it would help us in

our mission to deliver green electricity for the price of con-

ventional power. In some quarters, however, concern was

expressed at the use of vegetable oil as a biofuel for cars and

power stations. Some commentators were against the use of

edible biomass, such as peanut, soybean and palm oil, in en-

ergy production. In their view, such oils were part of the food

chain and should be used exclusively for eradicating famine

among the world’s poor. Other observers felt that the critical

question was where palm oil would cause the most lasting

damage: to society, nature or the environment? Among the

topics debated in this connection were the felling of primeval

forests, the appropriation of vast tracts of land for palm-tree

plantations, the planting of trees in peat bogs, child labour

and the low wages paid to labourers.

We felt that these were valid arguments. Clearly, the bio-

mass imported by Western countries must be produced in

a sustainable manner. Whether it is used for the production

of drugs, shampoo, food, animal feed, chemicals or fuel, its

production may on no account be at the expense of people,

fl ora and fauna, and the environment in its country of origin.

Unilever already understood the problem. For many years

now, it has been importing large quantities of oils and fats

from a variety of countries. Together with the WWF, Unilever

therefore launched a forum known as the Roundtable on

Sustainable Palm Oil (RSPO) a few years ago. We joined the

Roundtable when we started using large quantities of palm

oil as biomass. We should point out that, in all cases, we still

prefer using waste products such as husks, shells, pulp resi-

dues, skins, sawdust, wood cuttings and so on. These are all

waste products from existing agricultural production chains.

Apart from being cheaper, they do not compete with higher-

value chains such as the food production chain.

At the end of 2006, we stopped buying palm oil products

for co-fi ring in the Claus power station. There were two im-

mediate reasons for taking this decision: fi rst, it was diffi cult

to fi nd evidence to bear out the claim that palm-oil produc-

tion was indeed sustainable. Second, the chances of the

Roundtable on Sustainable Palm Oil reaching a successful


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conclusion were beginning to look increasingly remote.

At the same time, we were loath to abandon palm oil en-

tirely. After all, the opportunities for moving further down the

road towards a sustainable energy supply are pretty few and

far between, so there is every reason for closely investigat-

ing any opportunities that present themselves. We therefore

asked an external committee chaired by Professor Blok of

Utrecht University to resolve the deadlock by advising us on

the best course of action to take.

Professor Blok’s Committee presented its fi ndings in June

2007. The Committee advised us not to abandon palm oil as

a fuel, as we were one of those who were in an ideal posi-

tion to press for the adoption of certifi cation procedures for

sustainable palm oil. The Committee believed that a full certi-

fi cation system could be put in place within fi ve years. During

the intervening period, Essent could gradually start buying

larger and larger quantities of sustainable palm oil and palm-

oil derivatives. The Committee suggested that we should buy

certifi ed palm oil in increasingly large supplies, starting with

a minimum percentage of 20% in 2008 and gradually raising

this by 20% each year, enabling us to reach 100% in 2012.

We recently resolved to go one step further, however. We

have decided that, during the transition to 100% certifi cation,

we will not be making use of uncertifi ed palm oil. We will only

buy fully certifi ed palm-oil products.

The fi ndings of the Blok Committee pushed the debate on

palm oil in a new direction. Suddenly, things started mov-

ing quickly, and the RSPO adopted a set of certifi cation

criteria in November 2007. Various bodies are now working

on a worldwide certifi cation and inspection system, and we

expect that the fi rst RSPO-based certifi cates will be issued

during the course of 2008.

As a result, although we will not be co-fi ring any palm oil

in the Claus power plant for the time being, it is possible that

we may be able gradually to start buying RSPO-certifi ed

palm-oil products in the autumn of 2008.

Palm oil is only the fi rst form of liquid biomass fl ow for

which a certifi cation system is now being designed. Similar

systems of sustainability certifi cation have yet to be devised

for other oils, such as soybean oil, rapeseed oil, sunfl ower oil,

as well as other energy sources such as sugar cane and corn.

We are working hard in partnership with various other com-

panies to change this situation, and intend to open up our

Green Gold Standard Label to other suppliers in the future.

In addition, we have joined forces with other energy com-

panies and oil companies to devise a system of certifi cation

of various other biomass fl ows. This is no easy task: whilst

we would much prefer to see the adoption of an international

standard, for the present there are not even any European

standards, let alone globally accepted guidelines. Recognis-

ing the value of sustainable biomass, the Dutch government

is supporting us in this process.

As a result of the controversy surrounding the use of palm

oil (and also the ending of palm-oil grants, as we have

already mentioned elsewhere in this report), we were not

able to produce as much green electricity in 2007 as we were

in the previous year. We decided to import green electricity

to make up for the defi cit and hence meet market demand.

However, this is not an option we like using, as imports do

very little to ‘green’ electricity production. A huge amount

still needs to be done if we are to produce 20% of our power

from sustainable sources in 12 years’ time. We will need to

investigate and test a large number of new technologies,

assessing not just their energy effi ciency, but also their tech-

nical feasibility, their sustainability and their affordability.

But energy production has also got to be fi nancially viable.

We need to earn a profi t so that we can operate on a sustain-

able footing. After all, if part of your body is moving towards

sustainability, the rest of your body has to move in the same

direction, too.


Certi catesSustainable source and production

checklist(s)

For overall shipment/lot: all checklists for

sustainable source and production approved

as Green Gold Standard Label.

[yes]

Tracking & tracingSustainable transport checklist

Was the contracted cargo shipped and

received in good and clean order?

[yes]

Are the samples of corresponding chemical

composition?

[yes]

Source

Agriculture/forestry

Storage

Storage in country of origin

Cargo vessel

Seacrossing

Port of loading

Loading onto cargo vessel

Biomass producer

Processing

transport

transp

ort

transport

> Green Gold Standard Label

Market player/Pro t

Monitoring sustainability in the value chain of agricultural/forestry products

Transfer to power stationUnloading in the Netherlands

Generation of green electricity Use of green electricity

In 2002 Essent designed the

Green Gold Standard Label,

a method to guarantee the

sustainable origins of solid

biomass – such as wood, waste

and residual fl ows from the tim-

ber-processing and agricultural

industries. With this, Essent

wants to prevent the biomass

that is required for the genera-

tion of green electricity from

contributing to the destruc-

tion of forests or damaging the

living environment. 48% of the

biomass used by Essent in 2007

was certifi ed. The Green Gold

Standard Label is comparable to

other sustainability certifi cates

such as the Forest Stewardship

Council (FSC) quality mark.

In order to raise the label’s

profi le among other users of

biomass, even more enterprises

will be invited to use it.

Green Gold Standard Label-certifi cate

awarded?

[yes]

Interviews

Sustainable Energy Manager at Essent

Arnhem

Helma Kip

managing director of Control Union Certifications

Zwolle

Johan Maris

“CONTROL UN ION I S A DUTCH CERTI F ICATION F IRM, WH ICH HAS R ISEN TO PROMINENCE WITH

certification of organic farming. We are currently more focused on product certification,

including that of palm oil, which is why we are involved in the Roundtable on Sustainable Palm

Oil (RSPO). This is a set of principles and criteria for sustainable palm oil production adopted

by producers, distributors and users of palm oil. We are one of the certifying agencies assess-

ing whether the members of the Round Table comply with the principles and criteria. Now that

the first assessments are underway, we can expect the first sustainable palm oil shortly.

OBVIOUSLY, CERTI F ICATION I S AN IMPORTANT TOOL TO F IND OUT WHETHER A PRODUCT I S TRULY

sustainably produced. And the energy sector plays a distinct role in this respect. The carbon

balance is a key factor in corroborating the sustainability claim of biofuels. Do the use of the

land and the production method, for instance, not create more carbon emissions than are

saved by firing biomass instead of coal? An example: the use of peat land for palm oil planta-

tions did not initially play a role. But it is precisely the use of this land that produces more

carbon emissions than are saved. Now, the type of soil has become a criterion in sustainability

certification. Such questions are entirely irrelevant to other users of palm oil, such as the food

industry. We have the energy sector to thank for contributing to the scope of the sustainability

criteria.

MANY CERTI F ICATION PROGR AMMES ARE PRODUCT-OR IENTED AND DO NOT FOCUS SPECI F ICALLY

on sustainability throughout the chain. Local farmers look at their fields and not at the appli-

cation of their product; how can I earn the best living using my land? Sustainability is less of

an issue for them. There are a lot of middlemen and many potential applications before a

product reaches the end user. Their product can be used as a biofuel, but is just as easily

applied in cosmetics or in the food industry. That’s why you can’t just say that demand for

biofuel pushes out food production. By certifying the entire chain you gain an understanding

of where products come from, who produces them and which middlemen do what.

IT WAS INEVITABLE THAT QUESTIONS WOULD AR ISE ABOUT THE SUSTAINABILITY OF PALM OIL.

The world is a global village, so we know all about working methods in countries such as

Indonesia or Malaysia. If you cause damage to the environment by what you buy, you need to

change your buying habits. And you will be held accountable for what you do. This is a

responsibility that businesses will have to accept; they can manipulate producers by laying

down criteria for suppliers, thereby influencing sustainability throughout the chain. Busi-

nesses are often better placed than governments to do that, so they have to accept this

responsibility. The same question involving sustainability also came into play with respect to

solid biomass such as wood. Thanks to the Green Gold label, we now know what’s sustainable

and what’s not. Essent pioneered this quality label. Without Essent, certification procedures

for biofuels in the Netherlands would have been far less developed than they are now.

I’M PLEASED THAT ESSENT I S WILLING TO FURTHER EXPLORE THE I SSUE OF SUSTAINABILITY.

The report published by the Blok Committee also lists a number of actions that go beyond the

RSPO criteria. In my opinion, Essent gives off an excellent signal by having decided of its own

accord to source 100% sustainably produced palm oil only from now on. But we have to

remember that no producer can satisfy this requirement at the present time. And there is great

demand for palm oil. In other words, you have to ask yourself whether you can rally the sup-

port of the producers by demanding that palm oil should be 100% sustainable. Sustainable

production methods are not implemented overnight and require collaboration. It might be

more effective to gradually move towards sustainable production than to demand that all palm

oil be 100% sustainably produced from now on. This excludes parties that are still in the start-

up phase. After all, producers need to be given the opportunity to comply with the new

requirements!”

Johan

Mari

s

“ESSENT WAS ONE OF THE F IR ST ENERGY COMPAN IES TO START US ING BIOMASS ON A LARGER

scale. We began to use it in the nineties. And we were quick to evaluate whether its origins

also satisfied our sustainability requirements. In doing so, we not only assessed the quality of

the biofuel, but we also, and more particularly, addressed the question of whether its cultiva-

tion, extraction and transport were deserving of the label ‘sustainable’. With this in mind,

we launched the Essent Green Gold Standard Label in 2002. This label is highly suitable for

traceable solid biomass such as wood residues. The system allows us to trace this biomass

throughout the value chain: from its source to the power station. An independent inspectorate

monitors this process; this is how we know, on an ongoing basis, that our biomass is truly

sustainable and from ethical origins.

OUR BIOMASS CONS ISTS PR IMAR ILY OF RES IDUAL MATTER, SUCH AS WOOD CUTTINGS, SAWDUST

and residual matter from agricultural production. A telling example is a recently started pilot

with coffee husks, a residual product from coffee cultivation. We will supply our first green

electricity from coffee husks in 2008. The use of residual matter reduces the burden on other

applications, but whether you use biomass to produce electricity, food, medicines or cosmet-

ics, you always need to ask yourself whether the biomass you import and use does not have an

adverse impact on the sustainability situation elsewhere. And in this context, sustainability not

only involves ecological assurances such as protecting primeval forests, but also respecting

human rights, preventing child labour and creating favourable social circumstances.

IN 2006, THESE I SSUES CAME RUSH ING TO THE SURFACE WHERE PALM OIL WAS CONCERNED.

And now we see that biofuels are increasingly being scrutinised. We ceased our electricity

production from palm oil products when we were called to account for this sustainability issue

and felt we couldn’t come up with a satisfactory answer, despite the fact that we mostly used

residual products of the oil palm (fatty acids). Obviously, we’re not the only company using

palm oil and we already contacted other users at an early stage in hopes of finding a quick

answer to the question of how sustainable the use of palm oil products actually is.

The Roundtable on Sustainable Palm Oil (RSPO) is a forum where large users of vegetable

fats, such as Unilever, come together to discuss this issue. Essent is a member of the RSPO

as well. Unfortunately, the sustainability of palm oil proved not as easy to demonstrate as we

had hoped. As an energy company, we have to be able to guarantee, however, that the carbon

reductions we claim to achieve are not being cancelled out elsewhere in the chain, e.g. due

to logging or cultivation of peatlands.

TO EXPEDITE A SOLUTION, WE DECIDED TO HAVE A SURVEY OF OUR OWN CONDUCTED IN 2007,

reviewing the question of whether palm oil could be certified. Although this proved to be

possible, it will be some time before certification is realistically feasible.

At the end of 2007, we decided to use only 100% sustainable palm oil products for generating

electricity. Since such certified palm oil is not available at present as producers have yet to

adjust to the different sustainability criteria, we’re currently no longer sourcing any palm oil

products for our sustainable electricity production. I expect the first sustainable palm oil to

become available at the end of 2008.

IN THE INTER IM, WE’RE WORKING HARD, IN TANDEM WITH OTHER ENERGY AND TR ADING

companies, to allow the application of sustainability criteria to other biomass flows as well.”

HELMA KIP

JOHAN MARIS

Helm

aK

ip

“ANY COMPANY THAT USES B IOMASS HAS A SOCIAL RESPONS IB I LITY. TH IS APPLI ES

particularly to those companies that are interested in making the transition to a sustain -

able energy supply. They’ve got to make sure, after all, that the change is permanent.

Biofuels like palm oil have vital roles to play in this process. The main reason for using

biofuels is their ability to reduce greenhouse gas emissions. However, this does not of

course justify any damage they cause to the environment or the appropriation of land that

would otherwise be used for food production. These are factors that any company using

palm oil for energy production purposes needs to take into account. The same applies,

incidentally, to other users of palm oil, even though these may not immediately spring to

mind – such as manufacturers of shampoo, cosmetics or food fats. They, too, have a

responsibility to ensure that their raw materials have been produced in a sustainable

manner.

WH ILST COMPAN IES THEMSELVES ARE PR IMAR ILY RESPONS IBLE FOR THE MATER IALS THEY

use, the government does of course have a role to play, too. The government, after all, can

do things that firms can’t. For example, the damage caused to food supplies, the felling of

forests and poor working conditions are all important issues in relation to palm oil. This is

not a matter of checking whether individual suppliers are good employers or whether a new

plantation of young trees is planted after a forest has been felled. No, these are issues

that need to be addressed at a regional – or even global – level. A regional or global system

for monitoring biofuels, for example, could track the impact of palm oil production on the

environment and food supplies. Clearly, this is beyond the reach of an individual company.

The government has a role to play here, both as a coordinator and in reining in those com-

panies that do not wish to submit themselves to voluntary monitoring.

THE DUTCH GOVERNMENT HAS TR ADITIONALLY PLAYED A PRO-ACTIVE ROLE IN SETTING UP

certification systems for sustainability. The Cramer Committee, for example, has done a

tremendous amount of good work in this connection. However, it’s important to harmonise

systems with other countries, and not to make things too complicated. We need to prevent a

situation from arising in which ten different certification systems are in operation in Europe.

Europe already has a whole raft of grant schemes, but sustainability criteria for biomass do

not play a part in these. They have been incorporated, however, in the new grant scheme

recently adopted in the Netherlands. Grant schemes should not be designed in such a way

as to preclude the use of biofuels. Assuming that there is a broad set of sustainability crite-

ria and a good certification system, and that biofuels can offer a high energy efficiency per

hectare, there’s every reason for taking a long, hard look at them. Palm oil is just such a

fuel. Apart from coming with a good environmental record, it can also satisfy sustainability

criteria applying to the entire production chain.

WH ILST WE RECOGN ISE THE TREMENDOUS VALUE OF THE ROUNDTABLE ON SUSTAINABLE

Palm Oil (RSPO) as a system for guaranteeing the sustainability of palm oil, our own report

goes a step further in its recommendations. The fact is that you need to take account of the

CO2 balance and the impact of palm oil on food production. You’ve also got to guarantee

that any rise in the demand for palm oil will not lead to a further loss of tropical rainforest

for the purpose of planting new plantations. Clearly, it is not easy to keep track of this

aspect. It’s important to build up close contacts with trading partners. Producers can also

raise their output by making use of land that’s lying fallow or by boosting the output of

existing plantations. These two options still have a huge amount of mileage in them, which

is why we have advised Essent to look closely at them.

ESSENT’S DECIS ION TO SWITCH IMMEDIATELY TO SUSTAINABLY PRODUCED PALM OIL I S

entirely understandable, in the light both of the company’s social responsibility and of the

controversy that has surrounded the use of palm oil. Having said that, it would have been

entirely reasonable for Essent to switch gradually to sustainably produced palm oil. After

all, for the present only a very small amount of palm oil has actually been certified as having

been sustainably produced. With hindsight, Essent should perhaps have acted more

quickly, learning from past experience with the certification of solid biomass such as wood.

There’s only one option if there are doubts about the sustainability of biofuel in the value

chain, and that’s certification. Although Essent is now pioneering the certification of palm

oil and leading the way in terms of the demands it requires suppliers to meet, it must remain

on the alert whenever new fuels appear on the market.”

NICO ROOZEN

KORNELIS BLOKK

orn

elisB

lok

“I F A F IRM CLAIMS TO BE ACTING IN A SOCIALLY RESPONS IBLE WAY IN RELATION TO THE

sustainability of a particular product, for example, it must be able to substantiate this claim

to the satisfaction of society at large. In other words, there has got to be a set of impartial

standards, resulting in a clearly defined code of conduct. The next step is transparency

throughout the production chain, so that an independent third party can assess sustainability

at all points of the chain.

A code of conduct may be described as impartial if it is the result of a process of dialogue with

all the stakeholders, i.e. producers, customers, lobby groups and, where appropriate, govern-

ment bodies.

SOME F IRMS MAY NEED TO ACT AS P IONEER S, AS ESSENT DID WHEN IT INTRODUCED THE

Essent Green Gold Standard (EGGS) for solid biomass. The problem was that no system of

certification was in operation when Essent decided to start using solid biomass. The company

then took a calculated risk by formulating a standard of its own. That’s what pioneering is all

about. Whilst we welcome this move, Essent must be willing to open up its standard to others

and also to contemplate the possibility of the standard being subsumed in a new national or

international code. It’s gratifying to see that this is indeed the attitude taken by Essent. It

would be great to see the EGGS being incorporated into a generally accepted set of standards

in a few years’ time.

THE ROUNDTABLE ON SUSTAINABLE PALM OIL (R SPO) I S A GOOD EXAMPLE OF THE WAY

in which a certification system could come about. Essent is an active member of the RSPO,

together with other palm oil users and products, as well as NGOs.

IT’S ABSOLUTELY V ITAL THAT THE VAR IOUS STAKEHOLDER S TAKE EACH OTHER SER IOUSLY

and show understanding for each other’s views. Companies should not regard sustainability

simply as a form of window-dressing, whilst lobby groups must in turn recognise that

compliance with a code of conduct has got to be commercially viable. After all, any company’s

primary aim is to make a profit and hence safeguard its own future. Although this is some-

thing we respect, we do believe at the same time that the word ‘profit’ has more than just a

financial meaning. We prefer to use the term ‘social profit’, as it allows us to take account of

the actual social and ecological cost. In other words, the aim of certification should be to

match the maximum social profit with the minimum system cost.

THE PARTNER SH IP BETWEEN OUR TWO ORGAN ISATIONS, ESSENT AND SOLIDAR IDAD, HAS BEEN

highly constructive. This applies, for example, to Essent’s decision to use coffee husks

imported from Brazil: we worked together in formulating the relevant standards and Solidari-

dad paved the way for Essent to purchase the husks it needs in a way that will also give local

producers a fair price for their produce.”

Nic

oR

ooze

n

director of Solidaridad

Utrecht

Nico Roozen

chairman of the Blok Committee and

Professor of Science, Technology and Society

Utrecht University

Kornelis Blok

Essent as an employer

a dedicated workforce

Firms that mean business about their corporate social re-

sponsibility also mean business about the health, safety and

welfare of their staff. There are simply no two ways about it.

And it is not just because staff are entitled to good working

conditions, a pleasant working atmosphere and plentiful

career opportunities. Nor is it because companies that have

a reputation for taking good care of their staff make a better

impression on their customers. It is also because the People

who bear the brunt of a company’s social responsibility are of

course its staff.

Our workforce of over 10,000 people in the Netherlands,

Belgium and Germany represent an equal number of poten-

tial ambassadors. If we include their friends and relatives in

the equation, the sum total is an army of supporters and well-

wishers that would not even fit in the three largest football

stadiums in the country. This is an opportunity we would

very much like to seize. But we can do so only if we have a

dedicated workforce that backs us up everywhere they go:

at work, in the street, in pubs, at parties, at sports clubs and

wherever else they may find themselves.

Dedication hinges on the quality of work, development

opportunities, leadership styles, the way in which people

are remunerated and good, safe working conditions. Every

year, we improve our performance in each of these respects.

Judging by the findings of the Essent employee survey held

at the end of 2007, we are now scoring above the Dutch

national average. Having said this, given that we aspire to

become one of the leading players on the market, there is no

time to sit around and rest on our laurels.

more diversity needed

In order to wield influence in the world around us, we our-

selves need to reflect the composition of the society in which

we operate. Unfortunately, this is not something we have

achieved yet. We are keen to employ more young people,

more people from ethnic backgrounds and more women. In

other words, we would like our workforce to be more diverse.

Having said that, things are steadily changing. Step by step,

we are moving towards a better balance in the composition

of our workforce. Women are our first target. Recognis-

ing that change does not happen of its own accord, we are

now taking action to recruit more women and increase the

number of women in managerial positions. This also means

getting more women into senior management.

At the same time, we continue of course to do all we can

to recruit and retain highly qualified technical and IT staff.

Similarly, our skills development and training programmes

continue unabated, as do our attempts to promote a healthy,

safe working environment. However, we can only make rapid


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www.essent .eu

progress by setting certain priorities. And diversity is one of

them. This chapter examines the opportunities and threats

facing us in this connection, both internal and external.

workforce at a glance

At Essent 10,223 people are employed (FTes, excluding

Essent Kabelcom) Essent was formed by the amalgamation

of a large number of local and provincial utility companies in

the northern, eastern and southern parts of the Netherlands.

These origins are still refl ected by the towns in which our

offi ces are located and the places where the bulk of our

staff live. During the period since our inception, however,

our market has extended to cover the whole of the country,

as well as Germany, Belgium and even Switzerland (since

2007). Our fi ve largest places of business are in the towns

of Den Bosch (2,577 FTes), Zwolle (724 FTes), Groningen

(620 FTes), Geertruidenberg (380 FTes) and Roermond

(365 FTes). We have 294 people working in our head offi ce

in Arnhem. Essent staff live all over the country. Some 68%

of our staff do not live in the town where they work.

staff inflow and outflow

In 2007 the infl ow rate of our own staff was 11.3%, compared

with 13.0% in 2006. This slight decrease is due in part to the

recruitment freeze affecting certain jobs that was announced

at the time of the merger talks with Nuon. The outfl ow rate

of ‘own staff’ was 6.3% in 2007, compared with 5.4% in 2006.

The slight rise was caused primarily by staff leaving of their

own accord. Some were unwilling to await the outcome of

the merger talks with Nuon (fearing a reorganisation and a

redeployment of company staff) and decided to pursue their

careers with another employer.

average age

There was a slight rise in the average age of Essent staff,

which went from 40 in 2006 to 41 in 2007. By way of compari-

son, the average age of the working population in the

Netherlands is 39 (CPB, 2002).

Incidentally, there are wide differences in average ages

between the various business units. For example, the

average age of staff employed in Production is 47, whereas

the average age at Service & Sales and also at Essent

Trading is 35.

loyalty

Staff tend to remain with us for a long time, the length of

service averaging 14.5 years. In fact, 25% of our staff have

been with us for more than 25 years. These fi gures place us

well above the national average of 9 years (CBS, 2001).

Main Essent business locations

in the Netherlands,

including number of employees

51 Essent N.V. 2007 CSR Report › Essent as an employer › Diversity in development

Provincial Essent shareholders

Groningen 620

Wijster 288

Zwolle 724

Hengelo OV 236

Arnhem 294

’s-Hertogenbosch 2,577

Geertruidenberg 380

Weert 362

Roermond 365

Landgraaf 207


10,010

1,412

404

43

65

612

209

2,348

331

25

3,951

610

Workforce diversity, male/female, at Essent in 2007

Head office

Corporate support departments/

Essent Support Group

Business Development

Projects

Generation

Essent Trading

Service & Sales

Value Added Services

Deutsche Essent

Networks

Waste Management

Total Essent

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diversity

Although, on average, 27% of our workforce are women,

the fi gures vary considerably from one business unit to

another. The more technically oriented business units have

traditionally been male-dominated domains, with the

proportion of female staff being well below the average

(i.e. 4% at Production and 17% at Essent Networks). The

work performed by Service & Sales is of a more clerical and

commercial nature, and the percentage of female staff em-

ployed there is higher than average, at 52%. The percentage

of managerial posts held by women is 14%.

Women are represented most prominently in the under-30

age bracket at Essent, and are actually in the majority in

the 20-25 age bracket. The proportion of women gradually

declines as from the age of 30, with only a handful of women

in the 55-plus age bracket. Only 12% of our male staff work

part-time, compared to 46% of our female staff.

permanent and temporary contracts

Ninety percent of our own staff are employed on a permanent

basis, i.e. under contracts of indefi nite duration. In 2007,

42 people were employed under work-experience contracts

and 131 trainees spent their internships with us.

absenteeism due to illness

The absenteeism rate at Essent was 4.3% in 2007. As the

comparable fi gure for the previous year was 4.2%, this means

that there was a limited rise in the absenteeism rate in 2007.

The difference is too modest, however, for us to be able to

identify a single cause. The absenteeism rate at Essent

remains lower than the average for the energy industry as

a whole (4.9% - CBS, 2004).

complaints and problems

A total of 15 formal complaints were made to our confi dential

staff counsellors in 2007. Four of these were referred to the

Grievance Committee, which subsequently declared one

of them inadmissible. The Grievance Committee reached a

decision on all the cases submitted to it, including a case

instigated in 2006, which meant that rulings were given on a

total of fi ve cases in 2007.

employer of choice

Everyone likes getting a word of praise from time to time.

We do our best to be perceived as an attractive employer and

thankfully our efforts are rewarded with praise. For exam-

ple, our management traineeship programme, which has

proved very popular among job-seekers, was ranked second

in the contest for the Best Traineeship Programme in 2007.

An annual survey performed by a weekly magazine called

Intermediair ranked us among the country’s top-20 leading

employers, citing our pay and fringe benefi ts as being the

16th best in the country. A leading Dutch daily named us as

the Best Employer of 2007, whilst our ICT Department was

proclaimed Top ICT Employer of 2007 by the CRF market

research agency. Naturally, we are extremely proud of all

these titles. Moreover, with a ‘war for talent’ raging on the

job market, they are also extremely useful marketing tools.


www.essent .eu

In fact, things are moving so fast on the job market that the

shortage of certain categories of staff, particularly people

with technical qualifi cations, is becoming increasingly acute.

Against this background, we are keen to do our very utmost

to match supply and demand, without making any conces-

sions to quality. We need to attract and retain highly qualifi ed

staff, entice young people to come and work for us and boost

the number of women in our service. In other words, there is

no time for us to sit back and rest on our laurels as we enjoy

the fl ush of success. We need to work, day in, day out, on our

image in the job market. We need to raise our brand aware-

ness, make sure we stand out from the competition and

project self-assurance and confi dence.

HEALTH AND SAFETY AT WORK

safety takes precedence

Our Code of Conduct makes no bones about it: “We guaran-

tee healthy and safe working conditions for our staff.” There

are no riders, qualifi cations or promises to try as hard as

we can: It is a guarantee pure and simple. Health and safety

is a corporate responsibility resting on all our shoulders.

Obviously, the Executive Board is responsible for formulating

policy, and equally obviously, the management has to make

sure that this policy is put into effect. However, the policy can

be effective only if we all comply with the rules and regula-

tions and remain constantly alert – not just at work, but also

on our way to and from work. The mission statement formu-

lated for our HSE policy (Health, Safety and the Environment)

represents a full endorsement of this principle: “Every mem-

ber of staff should return home safe and healthy at the end of

the day.” Although there is a great deal the company can do

in this respect by pursuing effective policies, at the end

of the day it is individual members of staff who get caught up

in traffi c congestion on their way home or who make a dash

for a train in a crowded railway station. The same thing

applies to safety helmets: they only work if people actually

put them on. In other words, an effective HSE policy is the

joint responsibility of management and all individual mem-

bers of staff, irrespective of their organisational roles. The

overriding aim is, in fact, very simple: we want to prevent all

industrial accidents. This we wish to achieve by becoming

one of the leading energy companies in terms of staff safety.

An added benefi t of an effective HSE policy is that it helps

staff to work better and more effectively. It boosts staff

effi ciency, and that’s good news, for both us and our staff.

the figures speak for themselves

Our aim is to become one of the best-performing energy

companies in northwest Europe by the end of 2008, with

The DART rate explained DART rate = (number of DART-cases : total number of worked hours) x 200,000

Our safety record is expressed in the form of a DART rate. The word DART is short for Days Away, Restricted or Transferred, i.e. it refl ects the

number of accidents or incidents that cause staff to take time off from work or which result in changes in their jobs for every 200,000 hours worked.

The fi gures cover our own staff as well as staff employed by contractors. The defi nition originates form the US Occupational Safety and Health

Administration (OSHA). We have chosen to adopt the internationally accepted OSHA 18001 standard as the basis for our system of accident

registration and safety management. By taking this approach, we can compare our own safety record with that of other companies. The DART rate

also forms the basis for the targets that our directors and operational managers are required to meet. Alongside the DART rate, we also keep record

of other data giving information on other types of incidents and accidents (such as minor incidents in which fi rst aid is given), as well as reports

of unsafe behaviour and situations.

54

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Essent N.V. 2007 CSR Report

‘pump up those tyres’

The aim of this pilot project is to sensitise staff to the con-

sequences of low tyre pressure: the car uses 2 to 5 percent

more fuel, there is a greater risk of accidents and the tyres

themselves suffer more wear and tear.

winter tyres

All staff were invited to order special winter tyres for their

cars at a discount. The scheme does not cover company cars

(including leased cars), as these have already been fi tted

with winter tyres.

Den Bosch Section of A2 Motorway Project

The 15 largest companies in the Den Bosch region, including

Essent, joined forces with the local Chamber of Commerce,

the Ministry of Public Works, local and regional authorities

and employers’ associations to fi nd a solution to the problem

of rampant congestion on the local stretch of the A2 motor-

way. The aim is to improve road access to the local region.

safety kits

With effect from 2007, all staff driving leased cars are issued

with safety kits.

a DART rate of 0.80. The results of a European safety baseline

survey performed by a fi rm of outside auditors (Det Norske

Veritas) in 2007 show that we are well on the way to achiev-

ing our aim.

Our DART rate for 2007 (based on approximately 31 mil-

lion hours worked) was 0.97. This includes hours worked by

outside contractors. We have devoted considerable attention

to the latter aspect, given that our contractors’ safety record

in 2006 was not as good as ours. The target we had set our-

selves for 2007 was a DART rate of 1.0. As in the year before,

we scored better than the target and, again as in 2006, we are

pleased to report that no fatal accidents took place in 2007.

HIGHLIGHTS OF 2007

HSE Award

We founded the HSE Award in 2006 as a means of raising

safety-awareness among our staff. The award comes with a

cheque for 5,000 euros, which the winner is required

to spend on a good cause. In 2007, the HSE Award was pre-

sented to the Production business unit, for a new type of

risk analysis performed prior to starting up power stations.

HSE and Mobility Campaign

The aim of this ongoing campaign is to reduce the amount

of time spent on meetings and travel, and to encourage staff

to make greater use of public transport and to drive safely.

Michiel Boersma, Chairman of the Executive Board,

presents the HSE Award 2007 to the winning team of

the Generation business unit. The 5,000 euros were spent

on the restoration of St. Bavo’s Church in Raamsdonk.

55

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Essent N.V. 2007 CSR Report › Essent as an employer › Diversity in development

policy on alcohol and drugs

A new code of conduct on alcohol and drugs came into force

on 1 May 2007. Our policy consists not just of strictly regulat-

ing the use of alcohol and drugs, but also emphasises the

individual responsibility of staff in this respect. It is not just a

matter of each person controlling his or her own behaviour,

but also of their being willing to call colleagues to account

for their actions.

WHAT DO OUR STAFF THINK ABOUT US?

annual survey

We have been conducting annual Essent employee surveys

since 2003, with the assistance of a fi rm called TowersPerrin-

ISR. Staff are asked to complete a questionnaire contain-

ing around 100 questions about the company’s long-term

strategy and management style, their sense of loyalty to the

company, communications, their future expectations, pay

and fringe benefi ts, team spirit, etc. From the outset, the re-

sponse to the survey has been enthusiastic, with the take-up

rate consistently higher than 70%. In 2007, 77% of the work-

force completed the survey.

The survey fi ndings show that, year-on-year since 2003, staff

perceptions of Essent have steadily become more positive.

For the fi rst time this year, the scores awarded for all aspects

surveyed were either equal to or higher than the Dutch

national average. With the exception of the BU Value Added

Services and Essent Trading, all business units returned

signifi cantly improved scores on the previous year. Deutsche

Essent and Essent Belgium both performed very well, too.

For this reason, we are planning to set our sights even

higher next year. In the light of our aspiration to become a

leading company, our benchmark will no longer be the Dutch

national average, but the average score for ‘leading Dutch

companies’. The 2007 survey fi ndings make crystal-clear

where improvements are needed in order to score on a par

with leading Dutch companies. This is in areas such as staff

loyalty, identifi cation with the company’s long-term strategy

and management style, reputation, trust and integrity. Each

year, the survey fi ndings are used to set the following year’s

targets. The target set for 2007 was to enhance staff devel-

opment opportunities (in terms of training) throughout the

entire company.

STAFF PARTIC IPATION IN DEC IS ION-MAKING

constructive dialogue

Staff participation at Essent is all about having a say in deci-

sions and representing staff interests in decisions affecting

the organisation as a whole. It is all about ensuring that our

staff are closely involved in all major developments affect-

ing the company, and feel free to say what they think in an

atmosphere of constructive dialogue.

The main topic of debate in 2007 was of course the plans an-

nounced by the Minister of Economic Affairs to separate the

networks from the energy companies. Frequent and lengthy

meetings were held with the Central Works Council on this

threat, and on the impact it would have both on the energy

supply industry in general, and on Essent in particular.

The Central Works Council decided to take action of its own,

joining a campaign mounted by the National Platform of

Energy Company Works Councils to oppose the Minister’s

plans. In the end, sadly, we were unable to persuade the

Minister to shelve her plans. The question of the separation

of the networks from the energy companies will be a topic of

further debate in 2008, as this is when preparations will need

to be made for what is set to be a massive operation.

lots of meetings last year

At the beginning of the year, we presented the Central Works

Council with our plans for the takeover of Westland Energie

Services BV. The Council advised us to go ahead with the

acquisition. During the same period, plans were also an-

nounced for a merger with Nuon and the Council was asked

for its opinion on the merger. Frequent, intensive consulta-

tions were held with all the various staff consultative bodies

here at Essent, and these continued until the talks with Nuon

were broken off.

Other topics of debate with the Central Works Council in-

cluded the company’s HSE policy, the corporate strategy,

the relocation of certain parts of Essent Trading to Geneva,

the reorganisation of the BU Service & Sales, and the sale of

Essent Domestiq Services BV.

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Employer/People

Women are seriously underrepresented at

management level. How can we change this

situation such that the composition of our

management is a more accurate refl ection

of the society to which we supply energy?

But here is our dilemma as an employer:


it is hard to change a centuries-old tradition

For more than 150 years now, the Dutch energy industry

has been a white male bastion. Not that this is particularly

surprising. When the energy companies were founded in

the mid-19th century, working women were a virtually un-

known phenomenon (with the exception of cleaning ladies).

Because of the dominance of engineering and technology

(which continued until the contours of a free energy market

began to emerge), it was ‘jobs for boys only’ throughout this

period. The fact is that there were no women engineers to

employ.

Invariably, energy companies were controlled and run by

engineers, who occupied all the posts, even those that did

not require any specialist technical expertise. The company

managers were engineers: that was the rule. And those engi-

neers were men, men who wanted their subordinates also

to be engineers, preferably ones who had attended a college

of technical education. Again, they would have been men.

The lowest echelon in the company consisted of young men

from junior technical schools. There may have been one or

two exceptions from the rule, but this, basically, was the

general picture in the industry. It also applied to Essent’s

predecessor companies. Not surprisingly, 150 years of male

domination have left their mark on the company.

Women account for 27% of Essent’s workforce. The per-

centage falls to 14% in the case of managerial positions, and

to 12.5% in the case of senior executive posts (both manage-

rial and non-managerial). These are low fi gures compared

with other Dutch companies. Vedior, for example, boasts a

58% female participation rate, with Wolters Kluwer follow-

ing in its wake on 44%, Fortis on 30% and KPN on 20%. With

a national average of 7%, the Netherlands is not one of the

leading lights in the international arena in terms of the ratio

of senior managerial posts occupied by women. Norway

(32%), Sweden (24%), Bulgaria (21%) and Latvia (21%) all

perform better.

In short, the stats are not good. But how urgent is the need

for change at Essent?

greater diversity urgently required

Research shows that diversity fosters a spirit of enterprise,

raises the quality of decision-making and generates higher

profi ts. More diversity also means a better response to

customer demand and a greater chance of attracting and

retaining talented staff. But why?

better performance and a better atmosphere at work

The presence of women in the workforce means decisions

are given more careful consideration, and it also means a

more pleasant atmosphere. Female qualities such as an abil-

ity to listen well, motivate other people and hedge one’s bets

are needed to counterbalance typically male characteristics

such as a desire to dominate, rivalry and pragmatism. As a

further argument, over half of all university graduates these

days are women, and this fi gure is only likely to rise in the

future. On average, women perform better than men in high-

er education. In other words, greater diversity also means

bringing more talented staff into the workforce. Finally, a

range of studies and investment analyses have also shown

that companies managed by women earn substantially

higher profi ts than companies with all-male boards.

For Essent in particular, there are two further reasons for

increasing the proportion of women in the workforce. Firstly,

in the majority of households, it is the woman who chooses

the energy supplier. As the proportion of women working for

us grows, so we will acquire a more female outlook, encour-

aging female consumers to identify more closely with our

product offering.

Secondly, raising the proportion of women in our workforce

will help us form a better refl ection of the society around us.

This should boost public support for our activities in pursuit

of sustainability and place us in a better position to strike the

right balance between People, Planet, Profi t and Power.

As a fi nal consideration, more women means more fun and

more excitement. So what are we waiting for?

a formidable challenge

Unfortunately, raising the diversity of our staff is not simply

a question of a rubber stamp from the Board. Whilst it is true

that a Board decision is needed to set the whole process in

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motion, the fact is that senior managers must themselves

be in favour of greater diversity and must be ready to actively

spread the message throughout the company.

The next step is a culture change: diversity has got to be-

come an issue that exercises the minds of staff throughout

the company. Managers must be prepared to change work-

ing methods in their departments to accommodate the differ-

ences between the sexes. This is not just about differences

in style and attitude, but also about different views on the

work-life balance. It also means accepting the fact that many

female staff are mothers (or want to become mothers) and,

as a consequence, being prepared to alter ingrained habits

and company regulations. Clearly, this is something that

takes both time and goodwill.

a special task force

In order to set the process of change in motion and retain its

momentum, the Executive Board acted on a proposal from

Women’s Energy (WE), the company’s internal women’s

network, and set up a special task force. The task force was

given the job of mustering staff support for diversity, defi ning

clear, objective targets and formulating a series of perma-

nent measures.

The fi rst job of the task force, whose membership broadly

refl ects the company’s management, including the Execu-

tive Board, will be to formulate a diversity policy and defi ne

a number of measurable objectives. Two possible objectives

might be: the outfl ow rate for female managers should not

be higher than the comparable fi gure for male managers,

and women should account for 20% of the top-100 senior

managers at Essent within a period of three to fi ve years.

a long haul

We are keen to learn from successful action already taken by

other companies with a view to bringing about the requisite

culture change. Women’s Energy, the network of female staff

launched in 2006, will play a key role in raising the propor-

tion of women in our workforce. Other tools we are planning

to use include behavioural training for managers and new

tools for communicating with job-seekers. Creating a sense

of urgency by deploying ambassadors and organising ‘theme

days’ is another important part of the mix.

There are no two ways about it: Essent will be employing

more women in the future. The change will not come

overnight. Instead, it will be a matter of plugging away over a

long period of time. Aware as we are of our male-dominated

history, we realise that it’s going to be a long and diffi cult

process. At the same time, it will also be a lot of fun – an

interesting, surprising, exciting and colourful ride.

2007

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Expectations for the future

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Salary & Bene ts

Vision &Management Style

> Essent Employee Survey

Employer/People

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Essent has conducted the

Essent Employee Survey annu-

ally since 2003. This instrument

is used to keep the fi nger on the

pulse of organisational im-

provement. In addition to com-

paring its own scores through-

out the years, Essent also uses

the National Benchmark, the

average performance of 50

Dutch enterprises, to see how it

measures up. Thanks to a range

of improvement measures

taken in previous years, Essent

beat the National Benchmark

for the fi rst time since 2003,

virtually across the board.

Now Essent is ready to measure

itself against the Benchmark

for Leading Dutch Companies.

Essent outperforms the national

average in all areas addressed

in the Employee Survey, gradu-

ally climbing towards the status

of top performer.

IRS-Dutch National Benchmark

than last year

Interviews

programme manager at Essent Service & Sales

member of the Women’s Energy Essent N.V.

Arnhem

Marie-Christine Osterop

author of Stratego for Women

director of In Touch Women Resource Management B.V.

Limmen

Monic Bührs

“SO WHY ARE THERE SO FEW WOMEN IN MANAGEMENT JOBS IN THE NETHERLANDS? WELL,

to a certain extent, it has to do with Dutch culture: ambitious women attract criticism from

other women, particularly when they combine work with a family. This often leaves them

with a sense of guilt. To a certain extent, too, it’s a consequence of the country’s prosperity:

many women simply have no financial need to go out and earn money for themselves.

Another important reason is that women don’t make enough choices. You can’t have every-

thing. If you consciously decide to give priority to a professional career, you’ve got to realise

that this decision has all sorts of consequences, such as for your private life.

Moreover, because women place a higher value on enjoying their work than men, they tend to

concentrate more on the content-side of their jobs and make more sideways moves than men.

Successful men, on the other hand, tend to follow a more logical, vertical line in their careers.

And because men are often the ones in positions of power, CVs showing a lot of sideways

moves don’t always make a great impression in job interviews.

The fact that many women find it difficult to talk about pay during job interviews is another

disadvantage. Male interviewers may conclude that their interviewee is probably a poor

business negotiator.

ANOTHER FACTOR I S THAT, ALTHOUGH ORGAN ISATIONS CLAIM TO VALUE ‘TYP ICALLY FEMALE’

competences such as good communication skills, empathy and interpersonal skills, when

a woman displays these competences, they are seen as intrinsically female characteristics

rather than as qualities in themselves. For example, a male manager who sends a get-well

card to a member of his staff who is off sick from work is regarded as being considerate.

However, a female manager who does the same thing is simply regarded as displaying ‘normal’

behaviour.

F INALLY, WOMEN ARE GENER ALLY LESS GOOD AT RECOGN IS ING AND OBSERVING THE MANY

rules, both written and unwritten, within organisations. Whether it’s a matter of networking

or putting yourself in the picture, learning how to ‘play the game’ is a genuine competence

that women with ambition need to acquire.

There are, of course, no hard-and-fast rules, but I believe that women will need to occupy at

least 25% of all management posts before they gain sufficient critical mass to be able to alter

the rules of the game in a meaningful way.

IN OTHER WORDS, THERE ARE LOTS OF ‘SOFT’ FACTOR S THAT PLAY A ROLE IN RELATION TO TH IS

issue and these all require a great deal of thought. This is also why the problem has proved

so hard to resolve.

I WELCOME THE FACT THAT A WOMEN’S NETWORK WAS SET UP IN ESSENT IN 2006 – WITH THE

full support of senior management – and that one of the network’s aims is to foster diversity in

the company. I also applaud Essent’s decision to adopt a strategic policy on diversity as from

2008. At the same time, it is clear from experience in other organisations that have already

done a lot to make life easier for female staff that, in the end, it is up to the women themselves

to make a difference.

WH ICH I S WHY I OFTEN SAY: LADIES, LET’S STOP MOANING AND START MAKING CHOICES.

Let’s learn the rules and play the game. We may even enjoy it!”

Monic

Bührs

“TO ME, IT’S IMPORTANT THAT A TEAM’S COMPOS ITION I S AS DIVER SE AS POSS IBLE. I ’M NOT ONLY

interested in the male/female ratio, but also in aspects such as age and personality profiles.

After all, people tend to want to surround themselves with clones of themselves. Larger diver-

sity brings out more perspectives, which is good for the decision-making process.

I REG ISTERED FOR WOMEN’S ENERGY BECAUSE I FEEL THERE’S SOME WORK TO DO AT ESSENT

with regard to diversity. Women’s Energy has been active since 2006 as a women’s network

within Essent and is intended for women who’ve already taken a number of career steps.

The network currently has about 25 members. Although we’re still toying with the form, my

first experiences with the network are positive. It isn’t a bunch of moaning women, but a club

of colleagues who inspire each other and can learn from each other.

What’s also positive in my opinion is that Essent’s top management offers Women’s Energy the

room to develop as a network and takes us seriously. Early in 2008, for instance, we managed

to convince the Executive Board to place diversity on the executive agenda. One of the result-

ing initiatives was the formation of a broadly based task force that will make proposals to

increase diversity within Essent. Essent also decided to become a member of Opportunity in

Bedrijf, an organisation for the promotion of diversity in business. Finally, the Executive Board

promised to focus more on hiring women in managerial positions.

I MUST SAY THAT, BE ING A WOMAN, I NEVER FELT TREATED DI FFERENTLY THAN MEN AT ESSENT,

but I do think that women in general operate differently than men. You often see – and

I recognise myself here – that women are mostly concerned with the content of their job and

want to achieve concrete results, and are less agile when it comes to networking and

corporate politics, aspects that do matter at Essent. I, for one, sometimes forget to communi-

cate a good result that I’ve achieved, not only to my principal, but also in a more organisation-

wide context.

Perhaps Essent will become less politically driven in the future, but for the time being our

corporate culture is something that we just have to deal with. If women find this hard to

handle, they should probably take up the glove and do something about it. This applies to a lot

of issues in my opinion: stop complaining, and take constructive action.

THAT’S WHERE THE IN ITIATIVES OF WOMEN’S ENERGY COME IN: WE HAVE FAITH THAT ESSENT

is serious about increasing the diversity of its staff base, and we are only too happy to help

facilitate and, where possible, accelerate this process.

ESPECIALLY AT ESSENT, WHERE WE HAVE SEEN MANY A REORGAN ISATION, THERE ARE PLENTY

of ‘right’ moments to change the make-up of teams so that they become more diverse. What it

comes down to now is that we seize these opportunities when they present themselves!”

MARIE-CHRISTINE OSTEROP

MONIC BÜHRS

Mari

e-C

hri

stin

eO

stero

p

“UP UNTIL 2007 ESSENT WAS NOT REALLY CONCERNED WITH THE SPECI F IC POS ITION OF ITS

female staff, although there were some ad hoc initiatives, for instance within the framework

of the War for Talent campaign, when some attention was given, for instance, to providing

more job flexibility, a topic that is relevant to many women because of the work/life balance.

The initiatives included facilitating working from home and introducing flexible work hours.

I WOULD SAY THAT THE LACK OF FOCUS ON WOMEN WAS NOT BECAUSE ESSENT WAS UNWILLING;

it was rather a question of priorities. Essent has undergone so many developments in recent

years (reorganisations, far-reaching merger plans) that diversity never made it to the list of

priorities.

ALL TH IS WILL CHANGE FROM 2008 ONWARDS: DIVER S ITY WILL BECOME ONE OF OUR

strategic spearheads. Early in 2008 the Executive Board decided to set up a diversity task force

whose objective it is to create awareness and support, and to formulate targets and actions

relating to diversity. Essent has also become a member of Opportunity in Bedrijf, an organisa-

tion that helps to promote diversity in businesses. Finally, we are studying the possibility of

teaming up more with recruitment agencies that target specific groups, such as women.

I DON’T HAVE ANY I LLUS IONS ABOUT ESSENT EVER REACH ING THE 50/50 MARK AS FAR AS

men and women in managerial positions are concerned. Much of the business is simply too

technically oriented for that. You can see already that the share of women managers is

considerably higher in our sales and corporate services departments than in the Production

and Networks business units. We have to be realistic in that regard and set ourselves differen-

tiated targets.

ALTHOUGH THERE WILL BE NO DR ASTIC CHANGES OVER THE COUR SE OF ONE YEAR, I ’M

confident that our planned focus on diversity will pay dividends. This will not only work to the

benefit of women at Essent, but it will also be good for Essent as a business. After all, research

shows that diversity fosters a spirit of enterprise, as well as raising the quality of decision-

making and generating higher profits, promoting a better response to customer demand, and

increasing the chance of attracting and retaining talented staff.”

MARGO VAN BERKEL

ANOUK RASENBERGA

noukR

ase

nberg

“WHAT CAN ESSENT DO TO INCREASE THE REPRESENTATION OF WOMEN IN SEN IOR MANAGEMENT

positions? At Opportunity in Bedrijf, we have been mounting initiatives since 1996 to promote

diversity in businesses through our network organisation and centre of excellence. Experience

tells us that a firm that’s serious about diversity needs to focus on four main issues: demon-

strating the business case, scrutinising recruitment and assessment procedures, monitoring

internal transfers and promotions, and having a keen eye for corporate culture.

STARTING WITH I SSUE ONE: MAKE SURE THERE’S A CLEAR BUS INESS CASE FOR MORE DIVER S ITY.

Why do we need to address diversity? Diversity is not a ‘woman’s thing’ or a goal in itself,

but has social relevance as well as being a corporate strategy. After all, diversity demonstrably

leads to better business operations. In addition, a firm can’t afford – in these times of a

candidate-tight market – not to utilise 50% of the available human capital to its full potential.

AS A BUS INESS, YOU ALSO NEED TO SCREEN YOUR RECRU ITMENT PROCESSES. AVOID

emphasising merely the hierarchical or technical aspects of a business or a position in job

ads; it is also important to communicate, for instance, that the firm also offers opportunities

for coaching and personal development. These are aspects that are more appealing to women.

THE NEXT TH ING I S TO FORM AS BROAD A RECRU ITMENT COMMITTEE AS POSS IBLE AND BE

honest about preferences, rejections and assessments. Beware of preconceptions: not every

woman wants a part-time job! And if they do, ask yourself whether that’s the end of the world.

A lot of male managers seem to be doing other things one day a week, for instance teach

at a university or college. What’s the difference?

ONCE YOU’VE MANAGED TO H IRE WELL-EDUCATED WOMEN, HELP THEM TO MONITOR THE IR

career path. We know from practical experience that diversity does not take care of itself

once you’ve hired enough ambitious women. The organisation needs to make conscious

efforts to nurture diversity. It’s very important, for instance, to invite women to ‘ambition

interviews’. Try to find out why a woman refuses a promotion: what would it take to make the

most of the qualities and talents of this woman – within the restraints of a healthy business

policy? Perhaps her interests would be served by more flexibility in working hours and work

stations?

THAT BR INGS ME TO THE IMPORTANCE OF THE INFORMAL S IDE TO THE BUS INESS CULTURE.

Things to consider: how do you build a career in this organisation? What behaviour is

encouraged and what is not done? And how does that affect specific groups? A culture where

it’s ‘cool’ to say that you work 60-hour weeks as a minimum is no longer appealing to young

high potentials – women and men! Management by example also counts: people might

remember that Hans Wijers, when he was the Minister of Economic Affairs, cancelled an

important meeting because it was his daughter’s birthday. The leading motto is: ‘practice what

you preach’. Make sure that there are enough role models in the organisation and show that

differences are there to be celebrated. Feature an article in the staff magazine on men in

part-time jobs or show that there are more ways than one to build a career, such as easing up

on your career when there are small children involved, only to go at it full swing when they

grow older.

A F IRM THAT DEALS WITH DIVER S ITY IN SUCH A TARGETED WAY WILL DISCOVER THAT

improvements will follow suit. And that they won’t be the worse for it. Because ‘business is

too important to just leave up to men’, as Mr Van der Waaij, CEO of Unilever Netherlands,

so aptly put it.”

Marg

ova

n B

erk

el

senior advisor at Opportunity in Bedrijf

Amstelveen

Margo van Berkel

People Development manager at Essent N.V.

Arnhem

Anouk Rasenberg


participating in society

As a business, we are at the heart of society. What is more,

we are tied to it hand and foot. Just think about it: our cus-

tomers are a cross-section of society. After all, we visit all our

customers at home, if only just to read the meter. Our cus-

tomers cannot do without our products, not even for a day.

At times, we cause them some inconvenience, because our

energy supply is not always without failure. People see our

vans at busy intersections. They see us dig holes and repair

pipes or cables.

Our (public-sector) shareholders are elected by society.

Farm lands are teaming with our underground pipes and ca-

bles. And many town’s folk and country people look out onto

our transformer stations. Others live near our power stations

or close to wind turbines. And when you are stopped at a

railway crossing waiting for a train to pass, the next thing you

know, you see a row of Essent freight cars carrying refuse

rolling by. We could go on, but we have made our point:

we matter to society and society matters to us. This raises the

usual mutual obligations, for instance that we duly supply

our products and that society duly pays for them.

duty calls

But we also have special obligations to each other. Together,

we have to try to keep our community a place worth living

and make it better where we can. As members of society,

people role up their sleeves for the community, whether it

means manning the bar at the local football club, handing

out flyers for a political party or mowing a neighbour’s lawn.

It just means making a contribution to the community other

than through work.

Being a corporate citizen – as Essent is –, Essent does ex-

actly the same. In addition to our ordinary responsibilities,

we want to contribute what we can and help build a better

society. Sometimes our efforts are practically oriented, for

instance when we encourage our employees to start volun-

teering. Other times, we focus more on contributing input,

knowledge and ideas to projects where our expertise is valu-

able. And that does not mean that we only get involved

in projects that serve our business interests. In many cases,

we offer monetary support. We donate generous sums to

social causes.

Sceptics might say: that is all fine and dandy, but Essent is

not a sugar daddy. It is a commercial business. And donat-

ing money to a cause is not necessarily a measure of ‘social

engagement’. That would be called sponsoring, meaning

that ulterior motives are involved. One might argue about

whether support always qualifies as sponsoring, but we do

not deny that we have ulterior motives.

Why would we? Perhaps society even floats on ulterior

Essent as a corporate citizen www.essent .eu

www.essent .eu

motives. The person manning the bar at the football club

might not have any talent for football, but his volunteering

still lets him share in the club’s championship. And maybe

the woman handing out fl yers for a political party is hoping to

become a local councillor one day, which would make her a

shareholder in an energy company. Who knows?

However that may be, people want to be appreciated for their

efforts, as does a business. We, for one, mean to take up our

part of the responsibility for the communities that we operate

in. And our ulterior motives are that people know who we are

when choosing their preferred energy supplier.

our home turf

Essent has operations across the Netherlands and in parts of

Germany and Belgium. We regard these areas as our home

market, the target of our socially oriented activities. And then

there is our native district, the place were Essent originated:

the northern, eastern and southern parts of the Netherlands.

This is our parental home, so to speak, because our share-

holders, i.e. provincial and municipal authorities, are located

here. And it is where most of our staff live.

We feel especially connected with local communities in

those areas. Essent’s motto is: with one foot in North-West

Europe and the other in the community. And that is right in

line with our strategy. We are strong enough to be an inter-

national player and committed enough to cherish our roots.

Of course, this is easier said than done. Is our focus on

local communities not diametrically opposed to our interests

in the rapidly developing international energy market?

63 Essent N.V. 2007 CSR Report › Essent as a corporate citizen › Committed to the community

TILBURG NOORD 20

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DILEMMA [ 7:1 ]

[ 64/65 ]

Corporate citizen/Planet

We are a corporate citizen.

Our activities are increasingly globalising.

How can we nonetheless guarantee

that we have our feet fi rmly planted in our local

communities?

CSR means resolving dilemmas


www.essent .eu

sponsoring and support of social causes

There are different ways of showing that you care about so-

ciety, one of which is being prepared to invest in activities or

developments that are important to society, and earmarking

sums of money for sponsoring or support to social causes,

no matter what name this is given. What one company calls

sponsoring, another might call a donation, and what one

person would describe as support to social causes, another

would simply refer to as sponsoring.

In any event, the deal nearly always involves money that is

offered to enable another organisation to achieve its goal,

whilst agreeing with that organisation that they will render a

service in return that will help you achieve your goal. This is

the objective of sponsoring, but less so of support to social

causes. The difference lies mainly in the service in return,

which is measurable in either monetary or commercial terms;

this is not our main objective when we make donations.

In 2007 Essent donated approximately EUR 300,000 without

demanding services in return.

As a speed skating sponsor, we demand, for instance, that

our name be printed on the boarding lining the skating

oval, so that it features prominently on television. As a sup-

porter of a commemorative book about a community, we are

pleased – although we do not demand – that our name is

mentioned on the cover and that the Mayor refers to us in his

Sponsoring comes in many shapes

and sizes, from the Museum of Modern Art

in Arnhem (part of the Dealing with reality

exhibition) to speed skating.


www.essent .eu

Smaller projects are often more aimed at specifi c target

groups. Yet, these target groups tend to be diverse, espe-

cially in our communities. As such we sponsor the children’s

theatre programme of the Odeon/de Spiegel theatre in

Zwolle. We fi nd it important that children are introduced to

various forms of art at an early age. The Essent-kidreporters

write reviews that are shared through the theatre’s website.

Our sponsoring of the Drents Museum in Assen, the Muse-

um of Modern Art in Arnhem and the Bonnefanten Museum

in Maastricht is intended for anyone who is interested in art,

arts and crafts, and history, or for anyone who might want

to take an interest. Together with the three museums, we

try to lower the threshold as much as we can. Because this

requires our joint efforts, we recently decided to extend the

contracts another three years.

We have also focused intently on young people over the

past years, for instance by organising the Essent Awards,

incentive prizes for talented pop musicians, that have devel-

oped into prestigious Dutch music awards. We introduced

the Essent Awards winners at large pop music festivals,

including Noorderslag and Lowlands. And we saw many

of ‘our musicians’ make it big after they had won an Essent

Award. We also footed the bill for their performances at many

regional festivals.

With the Essent Chess Tournament in Hoogeveen, which has

speech when presenting the book. And in exchange for the

money that we contribute to important research projects,

we demand the right to apply the fi ndings of such projects

to our operations.

What is clear is that sponsoring, donations and support are

all branches of the same tree. Let us not complicate matters

and speak of sponsoring from now on.

sponsoring portfolio: a mirror of society

Just like Essent itself, our sponsoring should mirror the

breadth of society. That is why we focus on the areas of sport,

culture, nature and social causes. The same adage applies

to each area: the higher the amount we invest, the more the

cause should be refl ective of society as a whole. And when

we say society, we refer fi rst and foremost to a cross-section

of our local communities, because they are our grassroots.

For this reason, we have deliberately opted to sponsor speed

skating. In the Netherlands, speed skating is a widely loved

national sport, as well as being a top-class sport. Our mara-

thon skaters are diehards, the all-round skaters are our

national treasures, and our sprinters are cool. Speed skating

is a tremendously popular spectator sport and when our na-

tional anthem plays to honour the champion, we collectively

feel immense pride in being Dutch. Speed skating belongs

to all of us.


www.essent .eu

‘sponsor of the year’

On this basis, we have defi ned and executed a sponsor poli-

cy. We are not doing all that badly, judging from the Sponsor

Ring that was awarded to us in November 2007. The Sponsor

Ring is an award honouring the ‘sponsor of the year’. The

judges’ report praised us for our consistent sponsor policy, in

which we showed ourselves to be a reliable, long-term part-

ner for our sponsored causes and succeeded in positively

infl uencing consumer brand preferences.

teaching on the weekend

One of the projects that lies close to our heart is our involve-

ment in the IMC Weekend School project. This project, which

is undertaken in the cities of Tilburg and Groningen, targets

youngsters between the ages of 10 and 14 from underprivi-

leged backgrounds. By offering them additional courses

on the weekend we help them improve their career perspec-

tives and boost their self-confi dence. Our support is both

monetary and practical. Essent staff regularly teach weekend

classes also, either as volunteers or specialists.

A large enterprise such as Essent has specialists in all

shapes and sizes.

developed into the second-largest tournament in the Neth-

erlands and the fourth-largest in Europe, we focus our atten-

tions, mainly through the Internet, at the throngs of tactical

sport lovers who learned to play chess at the kitchen table.

And we make the people of Hoogeveen proud by putting

their town on the map (except for the bridal couples who

cannot be married at city hall for a week because the venue

is reserved for top-class chess players).

Our involvement in summer festivals such as the Boulevard

Theatre Festival in Den Bosch, Noorderzon in Groningen

and Cultura Nova in Heerlen lets us reach people of all ages

who like to go out at night, visit the theatre and enjoy lazy

summer nights.

And our support of the World Wide Fund for Nature (WWF)

draws the attention of anyone who cares about nature, the

environment and sustainability. Together with WWF, we

are engaged in many projects and campaigns to promote

sustainability in the Netherlands. And WWF scrutinises our

energy policy by looking over our shoulder. The discussions

that we have with them in this regard keep us on our toes.

Of course we are involved in many more projects, including

many small-scale events and activities in our local commu-

nities. We take special care that we undertake colourful and

exciting projects, so that our efforts refl ect a mirror image

of society.


www.essent .eu

encouraging volunteering

At Essent, we encourage our staff to take up volunteering.

What follows are just a number of examples. In April 2007

Essent employees helped prepare a bandstand in the city of

Zwolle for the festivities of Queen’s Day, the Dutch national

holiday. They also improved the connection to the electricity

grid. And a considerable number of people who walked the

Pieterpad trail – we organise these walks to discuss CSR –

got down to work as well. They cleaned up undergrowth in

nature areas, built trails and suchlike.

starry, starry night

If the community wants us to focus on social issues, we are

only too happy to take up our responsibility. On 27 October

2007 the provincial environmental federations and

Stich ting Natuur en Milieu organised a so-called Dark Night.

This initiative is designed to darken the nights in the

Netherlands, which is one of the most lit-up countries in the

world. And using less electricity is better for our climate.

We switched off the neon Essent logo signs at all our sites.

investing in research and renewable energy

You will not discover uncharted territory if you never stray

from the beaten track. We need to be willing to venture into

new areas in order to secure a sustainable energy supply

in the future. And we need to invest in innovation. The only

certainty that we have is that stagnation will not get us any-

where. Moving forward is what we want.

Together with Delta, a fellow energy company located in

the Province of Zeeland, Essent has established an invest-

ment fund for fi nancing innovative enterprises and projects

in the area of renewable energy. Investment specialists

Chrysalix Energy and Robeco helped us to set up this Fund.

The Fund goes by the name of Sustainable Energy Technol-

ogy Fund, or SET Fund. Essent and Delta have each contrib-

uted EUR 25 million. The Fund plans to double that amount

by involving other investors as well. The Fund will support

young innovative enterprises in particular that are involved in

developing new technologies for renewable energy, alter-

native fuels, carbon reductions and energy conservation.

Although Essent and Delta will contribute their expertise and

experience, the Fund is independent of its fi nanciers.

We also work in collaboration with institutes of learning.

We sponsor research conducted at the universities of Gro-

ningen, Twente, Tilburg, Delft, Maastricht and Eindhoven.

These are studies relating to energy supply and sustain-

ability. In addition, we have forged investment alliances with

many colleges of higher education in our home communities.

We have done this also with a view to rejuvenating our em-

ployee base.

Rinse de Jong (member of the Executive Board) and

Marga Edens (CSR Manager) meet with the Essent members

of Young Leaders for Nature to work on sustainable solutions

for issues affecting society.

< Show from the children’s theatre programme

performed at the Odeon/De Spiegel Theatre in Zwolle.


www.essent .eu

deeply rooted in the community

You need to be tied up with a community in order to be able

to make a difference there. We will only be regarded as an at-

tractive partner if our actions demonstrate that we value the

community. This means that we need to be visible and acces-

sible, to our customers, obviously, but also to authorities and

other decision-makers, to our stakeholders and to infl uential

organisations. In order to ingrain this in our minds, we have

established the Regional Stakeholders Management. In 2007

we gained experience with the concept in two areas, in the

Provinces of Drenthe and Limburg.

We focused on three core themes: raising our profi le in the

community, building a network with our stakeholders and

actively supporting our ambassadors in their respective

communities. We already had regional ambassadors (higher

managers at Essent), but they had mainly applied themselves

to their task on an individual and occasional basis before.

They have now been given a pivotal role in the Regional

Stakeholders Management and are supported by a special

team for each area.

To raise our profi le, we started to direct our attention more

at the regional media, asking them to report news and back-

ground information on Essent’s operations in the community.

We also encouraged local people to visit our sites; why not

invite your neighbours every now and then? After all, we

have exciting installations such as power stations and waste

incineration plants to show them. We also concentrated more

on local communities with our small-scale sponsor activities.

In addition, we took stock of all our stakeholders and started

to visit them or invited them to visit us.

The results for 2007 are so encouraging that we will start

to use this method in other areas as well in 2008. Essent will

gain a greater presence in communities and become more

accessible locally. We hope that this will help us to become a

more close-knit member of local communities in the future.

conserving energy together locally

Our regional roots are also refl ected in our collaboration

with our shareholders. As our shareholders are local authori-

ties, it is not surprising that we mean more to each other

than is usual in a relationship between an enterprise and

its shareholders. That is why we have developed the Essent

Shareholders Energy Conservation Plan as part of the overall

Essent Conservation Plan, which focuses on households and

business customers as well.

The Essent Conservation Plan has also resulted in the ‘Save

Your Energy’ curriculum for primary schools. On 23 Novem-

ber 2007 the curriculum was presented fi rst to a school

by the name of Epemaskoalle in Ysbrechtum, in the northern

Province of Friesland. The curriculum is looking to become

a resounding success, having been ordered by more than

500 Dutch primary schools already.

shareholders conserving energy

Our shareholders asked us in December 2006 to present

proposals for how we could encourage energy conservation

together. They wanted to give more practical expression to

their position as Essent shareholders, if possible in combi-

nation with their public duties as provincial and municipal

authorities. Accordingly, they started to focus on sustain-

ability and energy-saving, but also on poverty policy and the

cost of utilities.

This is how the Shareholders Energy Conservation Plan came

about. It was presented to the shareholders in July 2007. The

Plan’s goal is twofold: cutting costs by conserving energy

and reducing CO2 emissions.

We provide the shareholders with our people and our exper-

tise to create a bespoke energy conservation plan for each

municipal authority or province, and to help them implement

it, geared to the specifi c target groups in the area. Share-

holders can also opt for a joint plan, for instance together

with other municipalities, or a provincial plan that covers

every municipality.

Essent has committed itself to this Energy Conservation Plan

for three years, and has also pledged money, i.e. EUR 5 mil-

lion in 2007 and EUR 10 million in 2008; the budget for 2009

will be set after the Plan has been evaluated.

The budget is spread over the shareholders proportionate to

their shareholdings. An amount of EUR 15 million is available

for two years. If, for instance, a shareholder holds 10% of

Judging from the number of registrations, our shareholders

are enthusiastic about our initiative. All provincial authorities

and 56 of the 128 municipal authorities have already

registered for the Energy Conservation Plan. Plans for the

Provinces of Limburg and Noord-Brabant have already been

worked out and are ready to go. The other Provinces will

follow early in 2008. The Province of Flevoland will prepare

a plan in collaboration with the municipalities of Urk and

Noordoostpolder. Venray and De Wolden will be the first

municipalities where the plan will be put into effect.

The municipal authorities that have not yet registered will be

approached early in 2008.

The Plan for the Province of Noord-Brabant demonstrates

clearly what an Energy Conservation Plan can do. It centres

around an energy conservation desk: an information point

for home owners about everything to do with energy, energy

conservation and energy-saving subsidies. The same con-

servation desk is also being prepared to field questions from

occupants of rented houses. In addition, the Plan involves

a study of the feasibility of energy generation from kitchen

and garden waste, and renewable options for street lighting.

Streamlining opportunities for the district heating systems in

cities such as Tilburg and Breda, and the viability of micro-

cogeneration plants are also being investigated. The Plan

will ultimately result in an energy saving of 178 TJ, i.e. 25%

of the annual conservation target for urbanised areas in the

Province of Noord-Brabant. CO2 emissions will be reduced

by 10 Mton per year. A start will be made with the execution

of the Plan early in 2008.

our shares, it will be allotted EUR 1.5 million from the

Energy Conservation Plan. We would note that provincial

authorities can also spend the money on projects under-

taken in municipalities that do not hold shares in Essent.

An energy conservation plan is made up of a plurality of

component parts. A shareholder can choose from the

following menu to combine options:

■ energy advice within the scope of the Energy

Performance Building Directive (EU label

for the energy performance of residential and

non-residential buildings)

■ energy advice within the scope of the

Dutch Environ mental Protection Act

(consumption, opportunities for energy

conservation and measures)

■ lighting scan of offi ce buildings

■ lighting scan of street lights

■ sustainable energy scans

■ energy utilisation (performance contract)

■ energy management/monitoring (insight into

energy consumption)

■ benchmark of municipal buildings

■ implementation of energy-effi cient measures

(Essent can supervise the implementation process)

■ introduction of energy management system

(monitoring that savings are structural)

■ safety certifi cation for electricity and gas

■ micro-cogeneration plants (in pilot setting only

for the time being).

www.essent .eu

Essent N.V. 2007 CSR Report › Essent as a corporate citizen › Committed to the community71

Sponsor

of the year

In November 2007 Essent

was awarded the ‘Sponsor

of the Year Award’ for its

consistent sponsoring

policy

Committed to society

Essent Shareholder

Conservation Plan

Essent helps local and

provincial authorities achieve

CO2 reductions and cost

savings locally

The energy

you don’t use

is your best saving

Essent Consumer

Energy Conservation Plan

Gaining an understanding,

taking action and monitoring

energy consumption

Essent Business

Energy Conservation

Plan

Energy research, monitor-

ing and scans of climate

control, lighting and

sustainability

Energy for the

future

‘Save your Energy’ curricu-

lum, teaching children about

sustainable energy, climate

change and energy

conservation

SocietyInvesting

in innovation for tomorrow’s

energy

Making joint efforts;

volunteering and IMC Weekend

School

Conserving energy in the area

where you live and work

Culture

Essent Music Awards

Museums

Summer festivals

Theatre

Interviews

managing director and CEO of SET Venture Partners B.V.

Amsterdam

René Savelsberg

interim director of the Museum of Modern Art Arnhem

Arnhem

Marco Grob

“THE RELATIONSH IP BETWEEN OUR MUSEUM AND ESSENT I S INDICATIVE OF A CERTAIN

solidarity. After all, Essent does not traditionally have any customers in Arnhem. Their support

to our museum can be seen as a calling card to the city. I believe that it has truly contributed

to Essent’s image in Arnhem as a locally and culturally oriented enterprise. And it allows us to

partner up with Essent where its cultural policy is concerned, together with the two other

large museums that Essent supports. We effectively act as partners. We offer our advice on art

exhibitions at Essent and regularly organise art shows together. It allows both of us to raise

our profile and demonstrate to the community that locality matters. I feel that it has helped

Essent to develop a positive and modern-day image, as well as a connection with the city

where it’s headquartered.

AN INVOLVEMENT IN ART MAY NOT BE SOMETH ING YOU EXPECT FROM AN ENERGY COMPANY.

Creativity is, though. To me, Essent is a creative company that doesn’t shy away from unortho-

dox methods. Just think of its solutions for renewable energy. Artists are the kings of unortho-

dox methods. That, and sustainability, is what connects us. Our art collection is part of our

cultural heritage, something that we treasure. The same goes for nature: together, we need to

conserve it for future generations.

SOCIAL INVOLVEMENT I S ALSO A LINK THAT CONNECTS US. AS A MUSEUM OF MODERN ART,

we’re constantly exploring reality and forms of realism. This stirs up questions. Art is critical

and we do not only broach issues, but also want to convey a message. What I really enjoy is

the creation of a vision for the future of the company: Essent 2030. The organisation invited

artists to help plot this road. In turn, this creativity in dealing with your place in society and

your own organisation leads to cross-pollination. We support each other in our quest; we help

Essent in Arnhem and Essent helps us with our museum. And that reflects on both of us.

BECAUSE OUR RELATIONSH IP SPANS A NUMBER OF YEAR S, ESSENT LETS US LI FT THE MUSEUM

to a higher level, allowing us to organise better exhibitions for our visitors from all over the

country. This is how Essent gives back to people who might also be its customers. Essent truly

gives art a chance. And art stimulates reflection, it encourages people to think and feel. This

affects the lives of people, as does a business through its products, services and workplace.

If businesses take their social role seriously, they should be giving back to society. That’s why

we applaud investments in cultural institutions; they fulfil a valuable role in a city’s living

environment. They cannot exist on municipal or national grants alone. Businesses need to get

involved. That’s simply something you’re willing to do for each other.

OUR LONG-TERM ASSOCIATION OFFER S US MANY OPPORTUN ITI ES TO DEEPEN OUR RELATION-

ship, including more mutual profiling and promoting our partnership. We would also like to

utilise Essent’s knowledge in the areas of sustainability and energy management. How can we

capitalise on each other’s added value in forging relationships with the city and its surround-

ings, that continues to be the key question. Art builds bridges between people, businesses

and perhaps even between countries.”

Marc

oG

rob

“CORPOR ATE VENTUR ING I S ESSENTIAL FOR LARGE ENTERPR ISES IN ORDER TO KEEP IN TOUCH

with the market for new developments where they are not or not yet active themselves. Essent

has chosen to do that in the best way possible, by participating in an independent fund with

clear objectives. And especially the financial targets of such a fund also justify investments by

the other fund partners. After all, that’s how economically viable innovations that are set to

contribute to the sustainable energy supply of the future originate. But the EUR 25 million

each that Essent and its partner, Delta, have made available for the fund for the next nine

years are not enough. Although these are obviously large sums of money, more is needed to

drive successful innovations. That’s why we also plan to attract other parties, and the chosen

fund structure allows us to do just that.

VENTUR ING TO INVEST IN INNOVATION I S ABSOLUTELY NECESSARY. IN GENER AL, LARGE

enterprises should take a much more active role in innovations, especially energy companies.

The demand for energy is enormous and will keep on growing. Sustainability issues will also

gain in importance as a result. Corporate venturing is the perfect facilitator for Essent to

contribute its share to the sustainable energy supply of the future. Although I do ask myself

sometimes whether Essent would have made the same fund investments if it hadn’t been

obliged to do so under the Borssele Covenant. At present, most innovations are not allowed to

blossom because they don’t have enough scale or there’s no connection with the consumer;

Essent has both. Scale is a prerequisite for successful innovations. And investing in tomorrow

should be part and parcel of Essent’s place in society. Now’s the time to invest and make your

mark.

OF COUR SE THERE ARE ALTERNATIVES TO CORPOR ATE VENTUR ING, SUCH AS FUNDING RESEARCH

by a centre of excellence. But the question is whether that’s actually as effective. You should

never underestimate the power of the market in innovations. Making the most of opportunities

in a business setting and undertaking purely technical research are two different things

altogether. Investments also need to be aimed at making a profit in the future. That’s the only

way to develop truly useful technology. Research is not automatically profitable and tends to

be out of touch with the market. What’s more, by investing in early-stage businesses now,

Essent is involved in those technological developments. This allows Essent to prepare for the

application of these new technologies and become an early adopter. You don’t achieve this

through research or donations alone.

THE SET FUND DOES NOT FOCUS ON LOCAL COMMUNITI ES OR JUST THE NETHERLANDS.

After all, technology is without boundaries and we need to invest where we see opportunities,

whether they lie in the Netherlands or abroad. We have chosen to focus on Europe. Of course

I understand that the Essent shareholders hope that we will invest in their respective areas,

but I’m sure they’ll understand that we have to go after investments with the most potential.

That’s how they best give expression to their own social responsibility as well. By investing in

sustainable technology, through Essent and SET, the shareholders contribute directly to

sustainability and the technology of tomorrow.”

RenéSave

lsberg

RENÉ SAVELSBERG

MARCO GROB

“THE SHAREHOLDER S ENERGY CONSERVATION PLAN I S A GOOD EXAMPLE OF EFFECTIVE AND

essential teamwork between Essent and its shareholders. There are regular meetings between

us, the shareholders, and Essent’s management. During one of these meetings, Essent told us

about their plans for promoting energy-saving as a means of helping customers to reduce

their energy bills. We quickly agreed that this was something we could do in unison with

Essent and asked the management to produce a more detailed plan. Energy conservation

starts with awareness-raising among the general public, and this is where the provincial

council has a role to play. Our common aim is to encourage people to save energy and hence

reduce emissions.

THE NEXT STEP WAS FOR US, AS THE MEMBER S OF THE PROVINCIAL COUNCIL OF NOORD-

Brabant, to see what we could do to implement the Energy Conservation Plan in our own

province. We tried to identify areas in which the Plan meshed in with our own policy plans, and

then sought to formulate a series of realistic targets. The question we asked ourselves was:

what can we actually achieve in concrete terms in the next two years? Or, as the Ministry of

Housing, Spatial Planning and the Environment puts it, ‘how can we get things done?’ This is

an important success factor. The Energy Conservation Plan is targeted at both new-build

housing and existing homes.

The energy conservation desk – which was set up by the Provincial Council and is already

working well – encourages home-owners to take energy-saving measures. The desk supplies

both local residents and housing corporations with information on energy-saving measures in

and around the home. Subject to certain conditions, residents and corporations can also apply

through the desk for financial support for certain measures, such as high-efficiency double

glazing, solar panels, and roof and wall insulation.

IN THE CASE OF NEW-BU ILD HOMES, WE ARE US ING THE ENERGY CONSERVATION PLAN TO

support a project involving what are known as ‘energy-zero first-buy homes’. This will allow

us to gain experience with all sorts of new techniques and products. We have also selected a

further seven projects on which we will be conducting joint feasibility studies together with

Essent during the coming two years. Teamwork is another critical success factor – the ability

to work together and combine our mutual pools of expertise.

TH IS TYPE OF JOINT ACTION MAKES GOOD SENSE. AFTER ALL, THE PROVINCIAL COUNCIL HAS

local knowledge to offer, and Essent has the necessary technical expertise. We’re perfect

complements to each other. And I believe it’s good for Essent to raise its local profile. After all,

the company itself came into being as an amalgamation of local and provincial energy

companies.

I BELI EVE THAT ESSENT’S DECIS ION TO COME UP WITH AN ENERGY CONSERVATION PLAN I S

quite logical when you consider that it does more than just sell energy. An energy company

also has a social responsibility, especially those that claim, as Essent does, to be ‘green’ com-

panies. Green companies need to do more than simply invest in new, sustainable production

capacity and supply green electricity. They also need to promote energy-saving and invest-

ments in energy-saving measures. Essent’s sharp focus on energy conservation is testimony

to its confidence in itself.

SO I S THERE ANYTH ING ELSE THAT ESSENT SHOULD BE DOING? I TH INK THERE I S. THEY’RE

already leading the way in the use of biomass as a fuel, and made great strides last year in

relation to energy conservation. But there’s every reason to broaden their horizon. Why not

show even more guts, and try and make progress on several new fronts at the same time?

How about an energy-neutral business park, or local energy generation in glasshouses and

solar collectors? These would not just be innovative, but also have a high regional profile.”

GIJSJE VAN HONK

ANNEMARIE MOONSA

nnem

ari

eM

oons

“FOR A THEATRE SUCH AS OUR S – THE LEADING THEATRE INSTITUTE IN THE CITY OF ZWOLLE

and surrounding areas – corporate sponsors are lifesavers. That’s why we’re pleased that

Essent has decided to become the principal sponsor of our children’s theatre programme for

three years, starting from the theatre season 2007/2008. This allows us to present a larger and

more diverse offering of theatre shows than would otherwise have been possible. Now we

don’t have to limit ourselves to the ‘hits’, but we can also stage productions that may be lesser

known, but are certainly worth watching. Just to illustrate: in the theatre season 2007/2008 we

will put on over 70 children’s shows, from plays and musicals to concerts, dance and puppet

theatre. Essent leaves the choice of what performances to stage entirely up to us, and that’s

the way it should be.

OUR COLLABOR ATION WITH ESSENT I S NOT LIM ITED TO THEATRE SHOWS ALONE: WE HAVE

introduced the ‘Essent-kidreporters’, enthusiastic eleven and twelve-year olds who visit one

or more performances and write up a review, which we then post on our website. These are all

concrete things that help us to achieve an important goal, i.e. to raise the level of cultural

awareness in the greater Zwolle area, and to offer our youngest of audiences a nourishing

cultural environment.

F IRMS SPONSOR ING A THEATRE OR MUSEUM SET AN EXAMPLE FOR BUS INESSES THAT ARE NEW

in town: by social involvement in areas that are not their core business, the corporate sector

helps to make the local community an exciting and colourful place to live.

I WOULD TH INK THAT ESSENT ALSO BENEF ITS FROM ITS TI ES WITH ODEON/DE SP I EGEL. THEY

help Essent to raise its profile in a sympathetic way in an area where it has a large customer

base, as well as enabling it to organise functions in our theatre every now and then, and

welcome business relations here. A case in point is a symposium entitled “Tomorrow’s

Energy”, which Essent has scheduled for 18 March 2008 in Odeon/De Spiegel and where a

host of prominent speakers will express their views on the energy supply of the future.

ESSENT NOT ONLY SPONSOR S OUR THEATRE, FOR THAT MATTER, BUT ALSO SUPPORTS STICHTING

Cortegaerdt, an organisation promoting the hustle and bustle at the theatre, and offering a

meeting place for businesses located in the greater Zwolle area.

IN MY OPIN ION, ESSENT PLAYS A POS ITIVE SOCIAL ROLE IN OUR LOCAL COMMUNITY: IT HELPS

to support the community and create a connection between parties that would otherwise not

have been likely to meet.”

Gijsj

eva

n H

onk

director of the Odeon/De Spiegel theatres

Zwolle

Gijsje van Honk

member of the Provincial Executive of

Noord-Brabant with special responsibility

for Economic Affairs and Sustainability

Annemarie Moons

08www.essent .eu


Essent aims to be a leading sustainable energy company.

We already expressed this ambition in 2006. Sustainability

is not something that is confi ned to regional markets. We

source our biomass on the world market, we have people

working as far away as in Geneva and the climate situation is

a global issue. In this report, we have emphatically reiterated

our sustainability ambitions.

Ambitions are a good start, but what is our actual status?

How sustainable are our operations compared with those

of other energy companies? Are we in the break-away group,

are we giving chase, or are we stuck in the back of

the bunch? We could just follow our instincts, but there is

nothing like objective measuring. And that is exactly what

we decided to do.

the proof is in the numbers

We had a benchmark performed based on the Dow Jones

Sustainability Index (DJSI). Dow Jones is a reputable agency

and leading provider of global business news and informa-

tion services. It publishes The Wall Street Journal, among

other publications. Their DJSI is the most important global

index tracking the performance of leading listed sustain-

ability-driven companies worldwide. Dutch companies such

as TNT, Unilever, Philips and Akzo Nobel are benchmarked

against the DJSI.

Essent not being a listed company did not prove to be an

impediment whatsoever. Our performance could be bench-

marked against that of listed energy companies in every

respect and weighed against the same criteria. Although we

are, and will remain, the odd one out where the DJSI indexes

are concerned, the outcome is extremely reliable.

The benchmark was performed by Swiss-based fi rm SAM

(Sustainable Asset Management), which is a division of

Robeco. The assessment is made based on questionnaires

that need to be completed by the benchmarked entity itself,

corporate documentation (including the Annual Report and

the CSR Report), third-party documents, public information

and personal contacts between analysts and the corporation.

Essent is the fi rst Dutch energy company to have its

sustainability performance benchmarked against that of its

listed peers in the rest of the world based on this index.

We have opted for the following three benchmark levels:

■ Global

benchmarked against 39 listed energy companies

■ European


■ North-West Europe


Measuring sustainability

www.essent .eu

Overall scores

Individual scores

Economic dimension

Environmental

dimension

Social dimension

39 companies globally in 2007

68

57

81

74

61

86

58

52

81

74

58

86

7 companies in North-West Europe in 2007

68

72

78

74

75

84

58

67

80

74

73

86

Overall scores

Individual scores

Economic dimension

Environmental

dimension

Social dimension

75 Essent N.V. 2007 CSR Report › Measuring sustainability

We made this choice in order to end up with a useful out-

come. A benchmark of our performance against our global

peers only might have produced a biased view with too com-

fortable a score. For this reason, we added Europe

and North-West Europe to the equation. After all, we want

to know as accurately as possible where we stand and

how our sustainability performance compares against that

of our peers.

assessment along three dimensions

Our sustainability performance was assessed along three

dimensions, i.e. an economic dimension, a social dimension

and an environmental dimension. The economic dimension

involved an assessment of our policies concerning corporate

governance, our Code of Conduct, human rights, discrimina-

tion, women in management positions, risk and crisis man-

agement aspects, and customer satisfaction.

The environmental dimension addressed our energy-gener-

ating methods, emissions, power stations output, sourcing

policies for products and services, landscape management,

preservation of biodiversity and suchlike. The social dimen-

sion comprised an assessment of social aspects, including

focus on internal affairs such as employee development,

training and satisfaction, and our occupational health and

safety policy. External involvement in the form of sponsor-

ing and relations with stakeholders are assessed along the

social dimension as well.

our score

At global level, Essent achieved an overall score of 68%,

which is amply higher than the average score of 57%.

The highest score among the 39 benchmarked energy

www.essent .eu

companies was 81%. As indicated above, one might question

a benchmark against energy companies from other parts of

the world. That is why we are more interested in comparing

our sustainability performance against that of our European

counterparts. Since the outcome of both European bench-

marks is more or less the same, we have decided to concen-

trate mainly on our score benchmarked against the seven

North-West European energy companies.

Our overall score of 68% is slightly below the North-West

European average of 72%. The highest score among the

seven benchmarked energy companies was 78%.

We scored 74% along both the economic and social dimen-

sions, which is more or less in keeping with the European

average of 75% and 73%, respectively. The detailed report

shows that we are doing well as regards corporate govern-

ance (although we do not employ enough women), risk

management, occupational health and safety policies, and

our commitment to society.

Our human resources policy, recruitment and retention

practices, and performance reporting were rated slightly

below average. In addition, our role as a corporate citizen

(understanding of the effects of sponsoring) is not really up

to scratch. We scored 44% at an average of 66%.

Unfortunately, our performance along the environmental

dimension is lagging somewhat behind. We scored 58% at

an average of 67%. What is most striking in this regard is that

Essent has so far failed to adequately defi ne concrete targets

in the area of climate strategy (45% at an average of 60%)

and emissions reduction (35% at an average of 70%).

We are also trailing behind our peers where monitoring of,

and reporting on, performance delivery are concerned.

follow-up actions

The information on which this benchmark is based relates

to 2006. In 2007 we already proceeded to defi ne a host of

additional sustainability objectives, for both internal and

external purposes. We plan to translate those sustainability

ambitions into more quantitative targets and their monitor-

ing. The dilemmas that are formulated in this report will help

us to do so.

Naturally, we will investigate in 2008 where and how we

can further fi ne-tune our climate objectives and step up our

sustainability efforts. The outcome of the benchmark has

steered us in the right direction. In our CSR Report on 2008

we will report on the progress we made.


78

09www.essent .eu

Assurance Report

Engagement

We have performed an assurance engagement in accord-

ance with the Standard 3410 ‘Assurance Standard relating to

Social Responsibility Reports’. Our assurance engagement

concerns the 2007 Corporate Social Responsibility Report

(CSR) of Essent N.V (Essent) and is aimed to obtain:

■ Reasonable assurance that chapter 1 ‘Retrospective and

outlook’, chapter 6 ‘Essent as an employer’, chapter 8

‘Measuring sustainability’ are, in all material respects,

an accurate and adequate representation of the policy

and business operations regarding Corporate Social

Responsibility during 2007.

■ Limited assurance that the other information in the

2007 CSR report of Essent is, in all material respects,

an accurate and adequate representation of the events

during 2007.

Procedures performed to obtain a limited level of assurance

are aimed at determining the plausibility of information and

are less extensive than those performed in an assurance

assignment to obtain a reasonable level of assurance.

The information published concerning the environmental

and human resources information about swb AG, Deutsche

Essent and minority interests (of less than, or equal to, 50%,

where Essent does not have control of operations) are not

included in our assurance engagement.

Management’s responsibility

The management of Essent is responsible for the informa-

tion contained in the 2007 CSR Report and the preparation

of the Report in such a way that it provides an accurate and

adequate view of the policy, measures, and performance

of Essent concerning CSR. That responsibility comprises,

among other things, the design, implementation and main-

tenance of an internal control system that helps that the CSR

report does not contain any material inaccuracies, as well as

the selection and use of acceptable principles for measur-

ing and presenting sustainability performance results, and

the maintenance of estimates that, under the given circum-

stances, can be deemed to be reasonable. The choices made

by the management, the scope of the report and the report-

ing principles, including the inherent specifi c limitations that

might affect the reliability of the information contained in the

report, are explained in chapter 3 ‘Structure of the report and

accountability’.

Auditor’s responsibility

It is our responsibility to formulate a conclusion with regard

to the 2007 CSR report of Essent on the basis of the engage-

ment outlined above.

Procedures

We performed our procedures in accordance with Dutch law

and the requirements set out therein with the independence

of assurance team members. The test criteria that we used

are the Sustainability Reporting Guidelines (G3) published

by the Global Reporting Initiative, the social reporting guide

of the Dutch Accounting Standards Board (Raad voor de

jaarverslaggeving) and Essent’s own reporting policies.

We believe that these criteria are suffi cient in view of the

purpose of our assurance engagement.

Our principal procedures relating to the information used

to obtain limited assurance were as follows:

■ Obtaining an understanding of the sector, organisation

and it’s most relevant social responsibility issues;

■ Assessing the acceptability of the reporting policies

used and their consistent application, as well reviewing

signifi cant estimates and calculations made in preparing

the 2007 Corporate Social Responsibility Report;

■ Reviewing the plausibility of the information contained

in Essent’s Corporate Social Responsibility Report by

performing analytical procedures at group level and

at site level in the Netherlands, conducting interviews

with responsible company offi cers, and checking the

substantiations of this information on a test basis, as

well as retrieving the relevant corporate documents and

consulting external sources;

■ Assessing the overall view of the 2007 Corporate Social

Responsibility Report based on the above criteria.

Procedures added to obtain reasonable assurance regarding

the information in chapters 1, 6 and 8, were the following:

■ Identifying inherent risks relating to the reliability of the

information and investigating the extent to which these

risks are covered by internal controls;

■ Performing tests of control to review the existence and

TO : THE STAKEHOLDERS OF ESSENT N.V.

Essent N.V. 2007 CSR Report

79

www.essent .eu

effectiveness of the internal controls aimed at reviewing

the reliability and adequacy of the information;

■ Following the audit trail on a test basis, from the source

data through to the information contained in the 2007

Corporate Social responsibility report;

■ Performing tests of detail on a test basis aimed at

reviewing the reliability of the primary information.

Conclusion

On the basis of our procedures aimed at obtaining reasona-

ble assurance we conclude that chapter 1 ‘Retrospective and

outlook’, chapter 6 ‘Essent as an employer’, chapter 8 ‘Meas-

uring sustainability’ are, in all material respects, an accurate

and adequate representation of the policy and business

operations regarding Corporate Social Responsibility.

On the basis of our procedures aimed at obtaining limited

assurance we have no reason to conclude that the informa-

tion in the 2007 CSR report of Essent is not, in all material

respects, an accurate and adequate representation of the

events that took place in 2007, in accordance with the Global

Reporting Initiative guidelines, the social reporting guide

issued by the Dutch Accounting Standard Board and the

documented reporting policy of Essent.

Rotterdam, 27 February 2008

For Ernst & Young Accountants

Signed D.A. de Waard

Essent N.V. 2007 CSR Report › Assurance Report

www.essent .eu

Colophon

This CSR Report is published in Dutch and English. In the event of any

discrepancies, the Dutch printed version takes precedence.

This CSR Report was printed on PEFC-certifi ed, chlorine-free Lessebo

paper. The Programme for Endorsement of Forest Certifi cation Schemes

(PEFC) is a global set of standards for sustainable forest management

and supply chain certifi cation. The European Commission stated in 2005

that it considered PEFC and the Forest Stewardship Council (FSC) as

equal standards for sustainable forest management (EU A6-0015/2006).

The standards provide an assurance mechanism to purchasers of wood

and paper products that they are promoting the sustainable management

of forests by means of independent assessments.

Abbreviations

V volt, unit of electric potential

J joule, unit of electric work

A ampere, unit of electric current

VA volt-ampere, unit of apparent power

W watt, unit of actual power

Wh watt-hour, unit of number of watts supplied per hour

k kilo = 1,000 (e.g. kV = kilovolt, kWh = kilowatt-hour, kW = kilowatt)

M mega = 1,000 kilo

G giga = 1,000 mega

FTE fulltime equivalent; unit for expressing total number of staff

based on a full working week

www.essent .eu

Essent N.V.

Nieuwe Stationsstraat 20

6811 KS Arnhem

P.O. Box 268

6800 AG Arnhem

The Netherlands

Tel.: +31 (0)26 851 1000

Fax: +31 (0)26 851 1389

www.essent.eu

Editing & coordination

Eduard Wijnoldij Daniëls

Chris Arthers

Marga Edens

Joke ten Hove

Marjolijne van Huissteden

Marieke Mooij

Production

Copy

Jan Veenstra, Hoogeveen

Theme location photos and portrait of M.A.M. Boersma

Taco Anema, Amsterdam

Portraits interviews

Paulien de Gaaij Fotografi e, Utrecht

Images openingpage dilemmas

ESA p. 31

Thermographic images

Courtesy NASA/JPL-Caltech p. 45

FLIR Systems Benelux p. 57, 65

Translation

Ernst & Young Language & Translation Services, The Hague

Design, art direction and photography

Design Studio Hans Kentie BNO, Leusden

Lithography and printing

Drukkerij Rosbeek B.V., Nuth

Binding

Binderij Hexspoor B.V., Boxtel

Date of publication: 31 March 2008

Energy demands energy. And energy demands Essent.

With more than 2.7 million private and business customers,

Essent is the Netherlands’ largest energy company. The

company is the Netherlands’ largest producer of sustainable

energy. Essent has more than 90 years’ experience of

generating, trading, transmitting and supplying electricity.

And we have been handling gas for 150 years.

Essent possesses all the knowledge in house to make the

best use of the energy the earth has to offer. Energy that

is everywhere readily available. From wind, sunlight,

biomass, all around us. Essent is unique in knowing how

to make the most efficient and effective use of the available

energy. We put all our energy into that, so that you have

a guarantee of affordable energy for the future. And you can

depend on that.

Corporate Social Responsibility Report Essent 2007

Documents

Transcript of Corporate Social Responsibility Report Essent 2007