About this report

Input and correlations relevant to issue

Issue definition

Uninterrupted availability of energy through grids and installations that are keenly attuned to the needs of our customers and society as a whole.

Stakeholder expectation

Continuous supply of energy is of great social importance. Interruptions have a direct impact on the interests of our stakeholders. Customers demand immediate information about interruptions, as well as an indication of the estimated outage time.

Our long-term objective

Our objective is a high reliability of supply. Our target for repeat outages is that the number of unique cable numbers with more than five interruptions remains a maximum of 17 in the coming years.

Contribution from Alliander

We work daily to secure a continuous energy supply, both now and in preparation for the future. We invested €890 million in our networks to increase their reliability. Our outage duration was 23.2 minutes in 2020. The score for repeat outages was 17.

Relationship with Alliander impact model: manufactured capital

The prosperity value of energy transmission for society is high and makes a strong contribution to the well-being of customers. Interruptions in the availability of energy lead to a relatively strong impairment of customer well-being.

Link with strategy

Safety, long-term regulatory focus, required capacity and competences, anticipating and keeping up with the energy transition, cybercrime

Risks

Safety, availability of technical staff in labour market, insufficient long-term regulatory focus, required competences, facilitation of energy transition, cybercrime

Stakeholder information

• Reliability of supply in ‘High reliability of supply at low costs’ section

Input and correlations relevant to issue

Issue definition

Work on gas and electricity infrastructure involves risks. Safe working practices without incidents are vital for all stakeholders. The safety of networks for everyone involved is our highest priority. The possibility that incidents could occur in the energy network means a targeted approach is even more crucial.

Stakeholder expectation

Safe working practices are vital for all stakeholders. Employees expect a working environment where they can concentrate and work safely. Customers expect us to guarantee their safety during the performance of our work.

Our long-term objective

Everyone safely home! That is Alliander’s safety ambition. In addition, Alliander promotes a proactive culture where safety comes first. No target (figure) is set for the Lost Time Incident Frequency (LTIF) performance indicator, because the number of accidents leading to sickness absence should be zero.

Contribution from Alliander

Alliander goes by the ‘Life-Saving Rules’. A safe working environment and culture of safety help us raise safety awareness and ensure safer behaviour. In 2020, there were 21 lost-time accidents and 30 accidents that did not result in employees having to take time off work, which played a part in Alliander’s LTIF decreasing to 1.8.

Relationship with Alliander impact model: human capital

Work-related accidents and sickness impair the well-being and happiness of those concerned. As an employer, Alliander always aims to make a positive contribution to the well-being of employees.

Link with strategy

Reliability

Risks

Safety, cybersecurity

Stakeholder information

• Safety in the ‘A safe network and safe work and data environment’ section

• Fit and healthy employees in the ‘An attractive, inclusive employer’ section

Input and correlations relevant to issue

Issue definition

We are increasingly seeing that consumers and businesses are generating their own energy. As a result, network operators are facing numerous issues, such as their renewable energy feed-in capacity or them being allowed to take responsibility for the promotion of renewable energy.

Stakeholder expectation

We are seeing a trend where consumers and businesses are increasingly generating their own energy. Network operators are not permitted to distinguish by customers and their energy choices. As we advance towards the new energy system, energy generation based on fluctuating sources such as solar and wind is becoming increasingly important. In this context, we participate in pilots together with other parties, such as suppliers and consumers, in order to learn from these. Customers expect us to help them make new energy choices.

Our long-term objective

All municipalities must have their district-by-district plan for the transition from gas to clean energy completed by the end of 2021. In the design of these plans, Alliander is applying its knowledge and experience of existing energy networks to help the municipalities avoid making suboptimum choices and incurring unnecessary costs for society. For locally generated power in our regions, Alliander wants to be able to respond positively to all new applications for a feed-in to the grid.

Contribution from Alliander

Alliander wants to respond actively to the changing energy landscape. In 2020 we worked on innovations, including cable pooling, curtailment and congestion management. We have been looking at smart energy solutions together with customers and partners and gaining experience. Our business activities in the field of heating, for example, help customers make responsible energy choices.

Relationship with Alliander impact model: manufactured capital, natural capital

Renewable energy feed-in has a positive effect on customer well-being. An increasing share of renewable energy leads to a reduction of carbon emissions in the supply chain.

Link with strategy

Accessibility

Risks

Long-term regulatory focus

Stakeholder information

• Support for customers in making choices in ‘Making the energy supply and our organisation sustainable’ section

Input and correlations relevant to issue

Issue definition

To keep up with the changing energy landscape and be ready for future developments, it is vital that we be able to apply new technologies, working methods and solutions. With this in mind, we are teaming up with our primary partners in working on innovative solutions.

Stakeholder expectation

To keep up with the changing energy landscape and be ready for future developments, it is vital that we are able to apply new technologies, working methods and solutions. Customers expect flexible and reliable networks, enabling them to feed in energy whenever they want.

Our long-term objective

Technical and economic developments make new solutions both feasible and necessary. Alliander wants to do its bit by facilitating the energy transition. Our objective is to have offered all customers a smart energy meter by 2020.

Contribution from Alliander

The energy transition demands new and smart applications for the energy networks. Alliander invests in these smart technologies to facilitate the transition to a sustainable society, while continuing to guarantee reliability of supply. In 2020, the amount of solar and wind energy that customers fed into our network increased strongly. We also worked on congestion management through the use of a flex-market in Nijmegen-Noord, with the aim of matching the supply and demand of energy so long as upgrading the network in the short term is not possible or recommended. Through our business operations, we are discovering new markets. Realisation of planned smart meter offering in 2020: 403,000 smart meters offered. 

Relationship with Alliander impact model: intellectual capital

Technology, new market models and platforms contribute to positive intellectual capital. We want to track and analyse the exact social effects in greater detail.

Link with strategy

Accessibility

Risks

Long-term regulatory focus, capacity for change

Stakeholder information

• ‘Making the energy supply and our organisation sustainable’ section

Input and correlations relevant to issue

Issue definition

The addition of IT makes it possible to manage fluctuations in energy supply and demand and respond to evolving market relationships in a reliable, efficient and safe manner.

Stakeholder expectation

The use of IT makes it possible to manage fluctuations in energy supply and demand and respond to evolving market relationships in a reliable, efficient and safe manner. Smart networks and data technology help us to make targeted and effective investments in networks as well as to prevent outages and repair faults faster. Customers expect a network that enables them to feed in energy without any problem. They also expect us to make the network more reliable and transparent by means of innovative technology.

Our long-term objective

Alliander is working on an integrated IT architecture to be able to accommodate future processes and enable the energy transition. One of the objectives is to articulate a vision on our IT landscape. Liander’s activities plan includes digitalisation programmes.

Contribution from Alliander

We are working at various locations to make our energy networks smarter. We are making medium-voltage stations more intelligent, rolling out a switching system for public lighting, offering smart meters and implementing IT applications and sensors to flexibly manage the flow of energy. Smart networks support the efficient use of capacity and infrastructure, and are also more reliable. Expanding our smart energy networks lays the groundwork for the digital services of the future. 

Relationship with Alliander impact model: intellectual capital

The development of more and better data contributes to the social and intellectual capital as well as to more efficient and cleaner production.

Link with strategy

Accessibility, reliability

Risks

Privacy of energy data, cybersecurity

Stakeholder information

• Digitalisation in ‘High reliability of supply at low costs’ section

Input and correlations relevant to issue

Issue definition

Technology and organisations are changing continuously and at a rapid pace. Working has turned into lifelong learning. To be able to attract and further develop talent, we offer working conditions that give employees sufficient scope to advance in their career and encourage them to stay fit and healthy.

Stakeholder expectation

Technology and organisations are changing continuously and at a rapid pace. Working has become continuous learning: employees and labour market partners expect Alliander to enable them to stay fit at and for work through courses and training. Alliander works hard to promote training and development.

Our long-term objective

We aim to invest 3% of the wage bill in employee training. We offer long-term work to people with poor job prospects who meet the criteria of the Labour Participation Act. In addition, we offer work experience placements, internships and other learning experiences for a broad target group. We will meet the requirements of the Dutch Labour Participation Quota Act by 2024.

Contribution from Alliander

To find solutions for the energy issues of today and tomorrow, we invest a lot. In technology and, above all, in our people. We offer excellent compensation and benefits. To help our employees get the best out of themselves. That is good for them and good for the company. Employees are actively encouraged to develop their professional and personal skills with a range of training and development opportunities. Special attention is devoted to safety training for specialist roles or roles involving specific risks. Last year, Alliander welcomed 316 new technicians. Furthermore, 9 recruits with asylum status received training to carry out installation and maintenance work on the electricity grid. In 2020, Alliander invested 2.4% of its wage bill in employee training (2019: 2.7%).

Relationship with Alliander impact model: human capital

Employee development has a positive impact on human capital as well as on the level of education on the job market.  

Link with strategy

Accessibility, reliability

Risks

Safety, capacity for change

Stakeholder information

• Recruitment in ‘An attractive, inclusive employer with opportunities for all’ section

Input and correlations relevant to issue

Issue definition

Customers count on excellence in our service, communications, and handling of interruptions and complaints. We respond adequately to customer needs and actively promote customer satisfaction.

Stakeholder expectation

Customers count on excellent service, communication and handling of interruptions, questions and complaints. Municipalities and business customers expect a clear point of contact and that we deliver on our commitments. Actively focusing on customer satisfaction is a priority. Via Liander.nl and our telephone customer service, stakeholders can report complaints or malpractices relating to our company and activities carried out in our name.

Our long-term objective

Customer convenience will rise further in the coming years and will remain higher than the national benchmark of Dutch network operators. Customer satisfaction as measured by the Net Effort Score (NES): consumers at least 53%, business at least 32%.

Contribution from Alliander

We work daily to secure a continuous energy supply, both now and in preparation for the future. The quality of our services and communications vis-à-vis business customers and municipalities was improved. Our digital services were improved for all our customers thanks to our continuous online accessibility and short response times. The website experience for consumers and business customers was also further enhanced. Our performance was above the benchmark for business customers, and just below the benchmark for consumers. Customer convenience measured by the NES score is higher than 53% (consumer market) and 32% (business market). Result for consumers is 54% and business customers 35%.

Relationship with Alliander impact model: Manufactured capital

The sense of well-being and comfort derived from the availability of energy is enhanced further when customers are satisfied. Lower customer satisfaction means less added value for consumers.   

Link with strategy

Reliability

Risks

Completion of work package, privacy of energy data, cybersecurity, capacity for change

Stakeholder information

• Customer convenience in ‘High reliability of supply at low costs’ section

Input and correlations relevant to issue

Issue definition

As a large company, we can support social developments through investments, for example in a sustainable energy system. In making investments, we take these aspects into account and use criteria that stimulate social development.

Stakeholder expectation

Stakeholders expect a clear picture of the value that Alliander offers, and they want to see stable financial results. Sustainable value creation is an increasingly important aspect. As a large company, we can support social developments through investments, for example in a sustainable energy system.

Our long-term objective

Our objective is to remain a creditworthy company. We want to continuously outperform the sector in terms of costs and operational excellence. We want solid profits that are within the boundaries of what is permitted in the regulated domain. This is vital to implement our strategy and play a facilitating role in the energy transition. We maintain our solid A rating profile and have at least a B level for the ESG rating.

Contribution from Alliander

In 2020, we invested a total of €890 million in our networks. We issued a green bond worth €500, our third to date. In doing so, we created sustainable value for our stakeholders and retained our solid A rating. Our ISS ESG rating was set at B-plus, prime in 2020. In the interests of our providers of capital, we seek to strike the right balance between an adequate shareholder return and the protection of bond holders and other providers of debt capital, while preserving the flexibility to invest and grow.

Relationship with Alliander impact model: financial capital

A high rating has a favourable impact on our investment costs such as interest rates and facilitates our access to the capital market.

Link with strategy

Affordability

Risks

Financeability, long-term regulatory focus

Stakeholder information

Creditworthy company with solid returns, Annual Report, Regional information

Input and correlations relevant to issue

Issue definition

The extent to which Alliander and its employees are able to anticipate and respond to issues and solutions around the energy transition in a timely manner.

Stakeholder expectation

Stakeholders expect to be able to continue to rely on access to energy in the future. Alliander takes care of adjustments and innovations in its system that enable permanent access to energy for its customers. 

Our long-term objective

We work with focus, set priorities, and adapt our organisation to changing needs and circumstances as and when necessary.

Contribution from Alliander

All employees are equipped to rise to the challenges that the energy transition brings. We invest in our people and work together on vital professional skills.
We work with focus, set priorities, and adapt our organisation to changing needs and circumstances as and when necessary.

Relationship with Alliander impact model: manufactured capital

By working on being an excellent organisation and coordinating our activities effectively, we boost our execution capability and are able to get more work done and produce more.   

Link with strategy

Excellent network management is the basis

Risks

Capacity for change

Stakeholder information

• Profile of Alliander: Our strategy

• Increasing organisation’s efficiency in ‘High reliability of supply at low costs’ section

Input and correlations relevant to issue

Issue definition

The energy system is changing at a great pace, which comes with different requirements for the energy network. To create a new energy system at low social costs, we must develop new infrastructures and make effective and efficient use of existing ones. It is crucial to ensure that infrastructures, both today and in the future, be 'open', i.e. accessible to everyone on equal terms.

Stakeholder expectation

Stakeholders expect to be able to continue to rely on access to energy in the future. Alliander takes care of adjustments and innovations in its system that enable permanent access to energy for its customers. 

Our long-term objective

To create infrastructure in good time to meet the Dutch Climate Agreement targets in 2030 and 2050. Planned investments in our networks amount to €883 million.

Contribution from Alliander

Digital technology and technological innovations are paving the way for more efficient network management, reducing the need for upgrades. Digitalisation also produces data that enables customers to make energy choices that are right for them, as well as for the network. On top of that, we invest proactively in building and maintaining infrastructure to keep quality high. Together with our partners across the industry, we intend to compile a master plan that captures what needs to be done, as well as when and where. The Regional Energy Strategies to which we contribute knowledge and skills are crucial in this respect.

Relationship with Alliander impact model: manufactured capital

By investing in technology, new market models and platforms, we are preparing our networks for new requirements and continuing to create value for our customers.

Link with strategy

To help customers make energy choices, invest in open networks, digitalisation, and excellent network management.

Risks

Capacity for change

Stakeholder information

• Our strategy

• High reliability of supply at low costs

Input and correlations relevant to issue

Issue definition

Outsourcing, investments and production in other countries sometimes lead to an increased risk regarding the recognition and observance of norms in such areas as fundamental human rights, safety and the environment. Specifying procurement criteria and vetting suppliers in the product chain is instrumental in taking our corporate social responsibility.

Stakeholder expectation

With an annual procurement volume of about €1.5 billion, we are a major purchaser of products and services in the Netherlands. Stakeholders expect us, together with our suppliers, to ensure that our procurement is as sustainable as possible. If we can persuade our suppliers to take sustainability as seriously as we do ourselves, we can generate a significant positive impact through our supply chain.

Our long-term objective

We actively seek to improve our supply chain performance. This includes making plans with our suppliers to reduce carbon emissions and promote responsible operations. Our objective is to purchase at least 60% of our procurement volume based on circular principles by 2025. In addition, all suppliers must meet the Alliander Code of Conduct.

Contribution from Alliander

As well as maintaining continuous awareness of our compulsory Code of Conduct among all suppliers, we purchased 44% of our procurement volume based on circular principles in 2020. In doing so, we support the achievement of our socially responsible procurement objective in the Netherlands, while also promoting further sustainability among our suppliers through our Socially Responsible Procurement statements. Outsourcing, investments and production in other countries sometimes lead to an increased risk regarding the recognition and observance of norms in such areas as fundamental human rights, safety and the environment. The assessment of suppliers in the supply chain is part of our CSR and procurement policy.

Relationship with Alliander impact model

Manufactured capital, natural capital

Link with strategy

Reliability, affordability, accessibility

Risks

Capacity for change

Stakeholder information

• Supply chain responsibility in ‘Making the energy supply and our organisation sustainable’ section.

Input and correlations relevant to issue

Corporate Governance and business ethics

Alliander is committed to good governance and to making choices in the interests of all our stakeholders. In this endeavour, we are guided by our mission, core values and code of conduct. 

Stakeholder expectation

Stakeholders must be able to trust us to take their interests into consideration in a careful manner. Good corporate governance, adequate supervision and transparent accountability are essential to ensure stakeholders’ trust in the management and supervision. Accordingly, management must act with integrity and transparency and the Supervisory Board render account of its supervision. This is crucial in view of our vital role in society.

Our long-term objective

Our ‘together, smart and sensitive’ approach means that we must comply with the government’s rules. In addition, we, as Alliander, have drawn up additional guidelines to make it clear what we expect from employees. The ‘How we do things at Alliander’ e-learning programme helps employees to improve their integrity awareness. All employees are offered this programme and, to keep employees aware of and up-to-date on new cases, they are prompted from time to time to refresh their knowledge to a level of 70%.

Contribution from Alliander

Alliander is committed to good governance and to making choices in the interests of all our stakeholders. In this endeavour, we are guided by our mission, core values and code of conduct. The Supervisory Board provides adequate and effective supervision based on clear guidelines. We comply with the Dutch Corporate Governance Code wherever possible and applicable. In doing so, we emphasise our responsibility for the social aspects of entrepreneurship.  

Relationship with Alliander impact model: social capital

By working on better institutions and regulatory adjustments, we help to optimise the energy sector’s impact.

Link with strategy

Reliability

Risks

None

Stakeholder information

• Corporate Governance

Input and correlations relevant to issue

Issue definition

As a link in the energy supply chain, Alliander is responsible for the energy consumption and related carbon emissions of its networks, buildings and fleet, as well as for promoting efficient, sustainable energy generation and consumption.

Stakeholder expectation

As a result of the changing climate, the sea level is rising and extreme weather events such as storms and longer periods of drought or precipitation are more common. Climate change is a global problem. Stakeholders expect an active climate policy aimed at achieving lower emissions throughout the energy supply chain. In addition to our own and energy network-related emissions, our role in the energy transition contributes to lower emissions through energy consumption.

Our long-term objective

We strive to reduce our carbon emissions: on balance, we want to be climate neutral by 2023.

Contribution from Alliander

Alliander is preparing for situations where business operations may be affected by the consequences of extreme weather conditions. At the same time, we have a large gross carbon footprint. Carbon emissions contribute to climate change, and it is important to strive to reduce these emissions in order to reduce this impact. We implement greening programmes. Alliander is undertaking various activities to reduce carbon emissions, and we are increasingly greening energy consumption and network losses through the purchase of Guarantee of Origin certificates for sustainable energy produced in the Netherlands. Together with the Dutch network operators, we are working on standardising the way we calculate our footprint. As a result, our CO₂-related emissions have continued to decline in recent years.

Relationship with Alliander impact model: human capital

Climate change due to carbon emissions

Link with strategy

Accessibility, affordability

Risks

Insufficient long-term regulatory focus

Stakeholder information

• Making the energy supply and our organisation sustainable

• Appendices Other non-financial information

Input and correlations relevant to issue

Issue definition

Data exchange has become a permanent social and economic phenomenon. Data exchange and storage, and privacy-sensitive information, require maximum safeguards at all times.

Stakeholder expectation

Stakeholders expect us to use their data and personal details safely and carefully. Data exchange has become a permanent social and economic phenomenon. Data exchange and storage of privacy-sensitive information require maximum protection at all times.

Our long-term objective

Alliander respects the privacy of employees and customers. This means that we exercise due care in using their personal data and treat them confidentially. We meet the requirements set out in the General Data Protection Regulation (GDPR). Customers and employees can trust Alliander to protect their personal data.

Contribution from Alliander

We are obliged to meet statutory requirements for all personal data that we process (or intend to process). Pursuant to the GDPR, we have appointed a Data Protection Officer for Alliander customer data, who is responsible for monitoring GDPR compliance within the organisation. In addition, we set up a data processing register in 2019 to document all our personal data processing activities. Finally, we use Data Protection Impact Assessments (DPIA) to perform prior risk assessments whenever necessary due to the quantity or sensitivity of the data being processed. Customers can go to liander.nl to exercise their associated rights, such as the right of access, right to erasure, and right to restriction of processing.
In addition to working from home, other factors such as the increased use of employee data, more extensive deployment of contractors and intensification in the distribution of energy data led to a stronger focus on cybersecurity in 2020. In order to gain an even better understanding of the security risks at Alliander, we have reassessed the position of Chief Information Security Officer (CISO). We have also had our security processes certified by an independent external party in accordance with ISO 27001 and the Security Verified standard. 

Relationship with Alliander impact model: social capital, manufactured capital

The safety and privacy risks inherent in the management of personal data by Alliander and the energy suppliers have a potentially negative impact on our social capital. The assets/systems for the mitigation of cybercrime and hacking risks make a positive contribution to our manufactured capital.      

Link with strategy

Reliability

Risks

Financial risks, reputational risk, privacy of energy data

Stakeholder information

• Privacy and security in the ‘A safe network and safe work and data environment’ section

Input and correlations relevant to issue

Issue definition

Energy is a basic need for our everyday lives. That is why being connected to energy is a major priority. Amidst the ongoing transformation of the energy system, it is vital to ensure that everyone retains access to affordable energy on equal terms.

Stakeholder expectation

Energy is a basic need for our everyday lives. That is why being connected to energy is a major priority. Amidst the ongoing transformation of the energy system, it is vital to ensure that everyone retains access on equal terms.

Our long-term objective

Ensuring that the transition to renewable energy is realised in a controlled manner so that the energy system of the future remains affordable, reliable and accessible to everyone on equal terms. Connect all customers within the statutory 18-week term. We are aiming to make heating transition arrangements with all municipalities and housing associations in our service areas by 2022.

Contribution from Alliander

We adhere to national arrangements not to disconnect households during wintry conditions. We work together with municipalities and partners on regional energy arrangements. Where gas-free solutions are chosen, alternatives are provided.    

Relationship with Alliander impact model: Manufactured capital

Gas, heating and electricity transmission make a significant contribution to our social value by enhancing the well-being of consumers in multiple ways, such as the ability to heat their homes, use household appliances, and travel by electric car.

Link with strategy

Accessibility

Risks

Long-term regulatory focus, anticipating and keeping up with the energy transition

Stakeholder information

• Our strategy

• High reliability of supply at low costs