About this report

Input and relationships relevant to topic

Description of the topic

Private individuals and businesses increasingly generate their own energy. Large-scale renewable energy generation is part of national and regional agreements. This development necessitates continuous feed-in, input and consumption of energy in the network. Network operators like Alliander are tasked with constantly adapting their network capacity to meet society's needs and keeping the network future-proof. The energy transition requires major investments in and optimal usage of our energy networks.

Impact

Feed-in and input of renewable energy 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. Investments in the energy networks create jobs at Alliander and its supply chain partners. Expansion of the networks potentially leads to an increased requirement for materials and increasing demand in product supply chains, which then increases pressure on scarce raw materials and on working conditions at our partners and companies in the supply chain, both in the Netherlands and internationally. The energy transition is having a significant impact on Alliander's organisation. The rapidly increasing demand for connections, expansion of the network capacity and diversity in the types of connection present major challenges in terms of labour capacity, financing, planning and execution. 

Relationship with Alliander's impact model

Indicators for manufactured capital and natural capital. See also the topic: Corporate social responsibility in the supply chain.

Relationship with risks

Long-term regulatory focus, Capacity for change, Financing, Meeting customers’ expectations

Stakeholder expectation

Alliander is in continuous contact with stakeholders regarding the energy transition. Customers rightly expect to be helped within the specified periods. Collaboration is crucial in managing the major challenges we face in the Netherlands. Alliander aspires to contribute to the design of the energy system by advising on socially desirable outcomes that are beneficial for the energy system in terms of feasibility, the social costs and the spatial impact. For example, we advise the parties involved in the Regional Energy Strategies (RES) on the optimal wind-solar ratio and we cluster excessively large-scale supply and demand for energy. We also contribute our expertise when considering the most suitable heating system alternatives per area in the Transition Vision Statements for Heating. Through umbrella organisations and industry associations, we are in close contact with various groups in society.

Relationship with strategy and goals

Accessibility

Our long-term objective

Municipalities have drawn up plans setting out how they intend to wean each district off natural gas. Alliander contributes its knowledge and experience at the design stage so that suboptimal choices and unnecessary costs for society can be avoided. 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.

Alliander’s assessment and contribution

Alliander is responding actively to the changing energy landscape. We have innovations available, including cable pooling, curtailment and congestion management, and are scaling them up. We have been looking at smart energy solutions together with customers and partners and gaining experience. Our business activities related to heating, for example, help customers make responsible energy choices. Legal agreements and conditions need to be updated in certain respects to allow an effective response to the demands of the changing energy system. We are currently engaged in intensive discussions on this topic with our stakeholders and legislative bodies.

Lessons learned

See Our dilemmas.

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

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

Impact

The prosperity value of energy transmission for society is high and it makes a strong contribution to the well-being of customers. Interruptions in the availability of energy lead to a major impairment of customer well-being. The scope and duration of an interruption potentially have an impact on social functions such as health care, public transport and production processes, and therefore also on the economy and people’s well-being. The reliability of our networks is a core issue for the organisation. In the event of interruptions, we act immediately and can activate resources and scale up quickly. The use of IT tools in the network, for example, allows us to deal with some of the faults at an early stage. Prolonged interruptions have a financial impact due to compensation obligations and additional repair and recovery costs for the organisation.

Relationship with Alliander's impact model

Indicators for manufactured capital

Relationship with risks

Safety, Capacity for change, Meeting customers’ expectations, Cybersecurity, Future-proof investments

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. We send them specific information by text message indicating the expected duration of the problem.

Relationship with strategy and goals

Safety, Long-term regulatory focus, Required capacity and competences, Anticipating and keeping up with the energy transition, Cybercrime

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.

Alliander’s assessment and contribution

We work daily to secure a continuous energy supply, both now and in preparation for the future. We invested over €1.2 billion in total, with the greatest proportion being spent on increasing the reliability of the networks. Our electricity outage duration was 21.3 minutes in 2022. The number of repeat outages was 28.

Lessons learned

See Our dilemmas: availability versus reliability.

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

As a company, we are currently unable to meet the huge demand for expansion and replacement of networks in full and in good time. The feasibility of the energy transition is an even greater challenge. This is partly due to the severe shortage of labour with technical skills and the lengthy spatial planning procedures for building and construction.

Impact

Any delay in executing the work package leads to delays in the activities of our customers and contract principals. The social impact of access to energy is considerable, and any restriction on access reduces its contribution to social value creation.

Relationship with Alliander's impact model

Indicators for financial and manufactured capital

The increase in the size of the work package has an impact on our organisation. This is reflected in increasing investment costs, a growing need for financing and pressure on financial ratios. We are taking steps to organise the workload more smartly to reduce the impact on the organisation. 

Relationship with risks

Work package completion, Capacity for change, Meeting customers’ expectations.

Stakeholder expectation

Stakeholders expect requests for connections to be honoured within the applicable periods, to have lighting and warm homes, and to be able to keep businesses and other organisations up and running.

Relationship with strategy

Excellent network management

Our long-term objective

We advocate an energy supply system where everyone has access to reliable, affordable and sustainable energy on equal terms.

Alliander’s assessment and contribution

Our strategy comprises four pillars, which stand firmly on a solid and future-proof foundation: a safe, cost-conscious, sustainable and inclusive organisation. This helps us to work on our goals and missions, both now and in the future.

Lesson learned

To limit the amount of work required, we gain a better picture of the customer’s needs at an earlier stage and, together with stakeholders, we make plans for the future energy system.

Stakeholder information

• High reliability of supply at low costs

• Regional information

Input and relationships relevant to topic

Description of the topic

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 to work on innovative solutions.

Impact

In our innovation programme, our focus lies on creating and implementing innovations and smart solutions that reduce the work on the networks and the costs incurred for those networks. The digitisation of power grids is essential for the energy transition. New models for business and markets and the use of renewable energy lead to knowledge and data on these developments. This knowledge and data is intellectual capital that can make a positive contribution to issues around the energy transition, raw materials and implementation. We link the indicators for intellectual capital to SDG 9 and they are reflected in our activities to build a future-proof energy infrastructure and our use of innovative technologies, such as hydrogen projects for the built environment as a replacement for natural gas.

Relationship with Alliander's impact model

Indicator for intellectual capital, Cooperation in the field of technology. New market models and platforms have a positive impact on Alliander.

Relationship with risks

Long-term regulatory focus, Capacity for change, Future-proof investments

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. Alliander is involved in and initiates projects with local residents, municipalities, research institutes and sector initiatives and evaluates the project results with them.

Lesson learned

Proactively organise people, materials and services in a timely manner.

Relationship with strategy

Accessibility

Our long-term objective

Technical and economic developments make new solutions feasible and necessary. Alliander wants to do its bit by facilitating the energy transition. Our objective is to accelerate and increase the scale of operations by applying tried and tested innovations. We and our partners are acquiring experience in developing new technologies and working methods.

Alliander’s assessment and contribution

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 2022, the amount of solar and wind energy that customers fed into our network increased substantially again. In Lochem and Oosterwolde, we started projects for hydrogen networks. In Arnhem, we developed Green Gas storage with Powercrumbs.

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

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. To achieve this, we ensure that we understand the risks and take action to mitigate them. The measures we take include procuring safer materials and better work equipment, improving working methods and training our employees and contractors to boost their competence.

Impact

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. This also applies to the role of commissioning party in which we take responsibility for external employees. Our impact extends to contractors and supply chain partners (see also the topic Corporate social responsibility in the supply chain). Safe and responsible working conditions are a basic human right, covered by national and international legislation and agreements such as OECD, ILO and UN treaties. Safety incidents can also involve other stakeholders such as citizens and visitors or passers-by at locations where we are working.

Relationship with Alliander's impact model

Human capital

Relationship with risks

Safety, cybersecurity

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.

Lesson learned

We can discuss and analyse the underlying causes of unsafe behaviour more explicitly and further improve safety in respect of subcontractors and self-employed workers.

Relationship with strategy

Reliability

Our long-term objective

Everyone safely home! With zero avoidable accidents. That is Alliander’s safety ambition. In addition, Alliander promotes a proactive culture where safety comes first. The goal is a permanent behavioural change that we will demonstrate by attaining rung 4 on the Safety Culture Ladder in 2025. We aim for an LTIF of 1.0 or less. 

Alliander’s assessment and contribution

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 2022, there were 22 lost-time accidents and 42 accidents that did not result in sickness absence. This was partly why the LTIF increased to 1.7. Contract employees were involved in 14 lost-time accidents and 10 that did not result in sickness absence.

Stakeholder information

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

• Fit and healthy employees in the section ‘An attractive, inclusive employer with equal opportunities for all’

Input and relationships relevant to topic

Description of the topic

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 sustainable, efficient energy generation and consumption.

Impact

Our activities produce climate-related emissions, within our operations and those of supply chain parties, and when the energy we distribute is used. Our overall CO₂ footprint has a negative impact. Core processes account for 97% of our operations-related emissions. The climate impact of emissions attributable to customers and supply-chain partners is many times greater. We have established goals and programmes to reduce our impact. We are implementing technical improvements in our networks, insulating our buildings and switching to electric vehicles wherever possible, and we turn network losses green through participation in Dutch wind farms. The impact of the climate and energy topic on Alliander is reflected in the costs we incur for mitigation measures and climate adaptation, and the appreciation shown for our approach by capital providers. 

Relationship with Alliander's impact model

Indicators for natural capital.

Relationship with risks

Long-term regulatory focus, Capacity for change

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. We work together on climate adaptation measures with sector companies and local and national representatives.

Lesson learned

Internal CO₂ price must be agreed with the regulator.

Correlation with strategy

Accessibility, affordability

Our long-term objective

We contribute to the international emissions reduction targets that are designed to limit global warming to 1.5 degrees. We also contribute to SDG 7. We do not yet measure the impact of climate adaptation measures (SDG 13).
We strive to reduce our carbon emissions: on balance, we want to be climate neutral by 2023.

Alliander’s assessment and contribution

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 run 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. Our net carbon footprint in 2022 was: 116 kilotons of CO_2-eq (2021 recalculated: 166 kilotons of CO_2-eq). 

Stakeholder information

• Making the energy supply and our own organisation sustainable

• Appendices, Other non-financial information

Input and relationships relevant to topic

Description of the topic

Energy is a basic need for our everyday lives. That is why being connected to an energy supply 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.

Impact

Gas, district heating and electricity transmission make a significant contribution to the well-being of consumers by letting them heat their homes, use lighting and household appliances, and travel by electric vehicle. Not having access to energy, or only having limited access to energy, has a major impact on people’s well-being and personal development. We are aware that there are significant differences in the level of well-being experienced by different groups in society.

The topic has an impact on the core of Alliander's mission: providing access to sustainable, affordable and reliable energy.

Relationship with Alliander's impact model

Indicators for manufactured capital

Relationship with risks

Long-term regulatory focus, Capacity for change, Meeting customers’ expectations

Stakeholder expectation

Energy is a basic need for our everyday lives. That is why being connected to an energy supply 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. This applies primarily to all households, businesses and organisations that are or wish to be connected to the networks in our service area. Independent regulatory bodies such as the ACM assess our service provision.

Lesson learned

Cooperation with municipalities, central government and energy suppliers to prevent disconnections.

Relationship with strategy

Accessibility

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. We aim to complete all connections 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.

Alliander’s assessment and contribution

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

Stakeholder information

• Our strategy

• High reliability of supply at low costs

Input and relationships relevant to topic

Description of the topic

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.

Impact

The development of more and better data contributes to social and intellectual capital as well as to more efficient and cleaner production. When used like this, knowledge and data can help resolve issues related to the energy transition, raw materials and realisation of the work. Data and the input of data do not automatically guarantee the desired result. Critical analysis of social effects and potential negative impacts is necessary to ensure reliability and safety. The impact on Alliander consists of enhanced productivity and future-proofing in addition to possible exposure to cybersecurity risks.

Relationship with Alliander's impact model

Indicator for intellectual capital

Relationship with risks

Privacy, Cybersecurity, Future-proof IT landscape

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.

Lesson learned

See Our dilemmas. Assign responsibilities at the level where the consequences can best be overseen.

Relationship with strategy

Accessibility, reliability

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.

Alliander’s assessment and contribution

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. 

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

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

Impact

The security and privacy risks inherent in the management of personal data by Alliander and the energy suppliers can potentially have a negative impact on social capital (reduced digital security). The assets and systems for the mitigation of cybercrime and hacking risks make a positive contribution to our manufactured capital. Any breach of data security and safety systems could have a major impact on Alliander and lead to adverse social effects.

Relationship with Alliander's impact model

Indicators for social capital and manufactured capital

Relationship with risks

Privacy, Safety, Cybersecurity

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.

Relationship with strategy

Reliability

Our long-term objective

Alliander respects the privacy of its 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 law implementing the General Data Protection Regulation (GDPR). Customers and employees can be confident that Alliander handles personal data with care and acts immediately if the data integrity is threatened.

Alliander’s assessment and contribution

We are obliged to meet statutory and other requirements for all personal data that we 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 have set up a data processing register in which we document all our personal data processing activities. Finally, we use Data Protection Impact Assessments (DPIA) to perform prior risk assessments whenever we plan to process large volumes of data or highly sensitive data. 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.
Factors such as the increased use of employee data, more extensive deployment of contractors and intensification in the distribution of energy data have led to a greater focus on cybersecurity since 2021. 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. 

Lesson learned

A hack of privacy-sensitive data used for employee badges led to new security measures.

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

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.

Impact

Customer satisfaction is an indicator for the sense of well-being and comfort derived from the availability of energy. A decline in customer satisfaction ultimately has a negative effect on the added value experienced by customers. The impact on Alliander is reflected in benchmark comparisons and ratings by external assessors, among other things. In extreme cases, regulators may even decide to impose a financial penalty.

Relationship with Alliander’s impact model

Indicator for manufactured capital

Relationship with risks

Work package completion, Privacy, Cybersecurity, Capacity for change, Meeting customers’ expectations

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.

Lesson learned

Huge increase in customer requests led to increased front-office and back-office effort.

Relationship with strategy

Reliability

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%, businesses at least 37%.

Alliander’s assessment and contribution

We work daily on our customer satisfaction, 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. Our goal for customer convenience for 2022, measured by the NES score, was to exceed 53% among consumers and 32% in the business market. The actual result for consumers was 49% (-2% compared to 2021) and 34% for business customers (-4%). 

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

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.

Impact

Employee development has a positive impact on human capital as well as on the general level of education and training in the job market. By providing work that connects with social developments, we also increase our impact. High employee job satisfaction increases our attractiveness as an employer and enhances the social value of our achievements and results. The current lack of technically schooled workers and experienced professionals in the labour market has a dampening effect on production and manufactured capital.

Relationship with Alliander's impact model

Human capital

Relationship with risks

Safety, Capacity for change, Completion of work package

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.

Lesson learned

Cooperation in the Technology Action Plan, the national strategy for recruiting more technicians, and creation of the multidisciplinary Labour Market, Training and Retention Team.

Relationship with strategy

Accessibility, reliability

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.

Alliander’s assessment and contribution

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 encouraged to develop their professional 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 387 new technicians. For the third year in succession, refugees with a residence permit completed a development programme to attain a senior secondary vocational education (MBO) qualification in installation and maintenance work on the electricity grid. In 2022, Alliander invested 2.9% of its wage bill in employee training (2021: 2.8%). 

Stakeholder information

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

Input and relationships relevant to topic

Description of the topic

We consider anybody or any group that is affected by our activities or that has an influence on our organisation or services to be our stakeholders. We keep a constant check on who our stakeholders are. Whether on projects or concerning certain topics, they may have a relevant contribution to make and we involve them. The energy system is changing at a great pace, which comes with different requirements for the energy network. Collaboration and dialogue with stakeholders are essential to align changes and their impacts with developments in society.

Impact

Stakeholders have an interest in the social impact that we have on the forms of capital relevant to them. Interconnection and participation improve communication and foster solutions; this strengthens the social capital. For Alliander, the impact of the energy transition and social developments means there is a need for contact and dialogue with stakeholders in all phases of the work. Changes in laws and regulations may have an impact on Alliander's operations.

Relationship with Alliander's impact model

Indicators for financial and social capital

Relationship with risks

Long-term regulatory focus, Capacity for change

Stakeholder expectation

Stakeholders expect to be able to continue to rely on and have access to a well-functioning energy system in the future. To ensure this, Alliander must be receptive to stakeholders’ concerns and listens to them.

Relationship with strategy

Continuous evaluation of stakeholder relations in respect of our tasks; alignment regarding the social aspects of the future energy supply.

Our long-term objective

We are permanently in contact with our stakeholders and involve them in developments and the social impact we have as an organisation.

Alliander’s assessment and contribution

We organise our stakeholder relations appropriately. Contact takes place on a regular and ad hoc basis and, where necessary, according to legal requirements, and through a variety of channels, depending on the topic, its intensity and the relationship with the choices we make as an organisation on a daily basis.

Lesson learned

Supervisory Board’s response to the stakeholder panel. 

Stakeholder information

Interaction with stakeholders

Input and relationships relevant to topic

Description of the topic

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.

Impact

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. The high demand in society for connections and capacity means that we have to work both faster and smarter. Nevertheless, we cannot always meet our commitments within the deadlines, and customers experience adverse effects on their well-being and business affairs. The pressure to do more and work differently has an impact on employees, i.e. human capital, but also opens up development and training opportunities.

Relationship with Alliander's impact model

Indicators for manufactured capital

Relationship with risks

Capacity for change, Completion of work package

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. 

Lesson learned

We are committed across the board to Performing Together.

Correlation with strategy

Excellent network management is the basis

Our long-term objective

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

Alliander’s assessment and contribution

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.

Stakeholder information

• Profile of Alliander:Our strategy

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

Input and relationships relevant to topic

Description of the topic

Our procurement expenditure increases considerably each year. The expansion and maintenance of our networks and the assets for supporting those activities result in a substantial demand for materials. 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.

Impact

We have a large impact on supply-chain partners through the growing value of the goods and services we procure from them. This generates jobs and economic capital. The extraction of raw materials and production of specific materials and components takes place at numerous production sites worldwide. This has an indirect impact on the environment and working conditions in the Netherlands and worldwide. The procurement of materials, generation of waste and emissions of CO₂ and other substances cause ecological harm. Safety and working conditions have an impact on human capital. Lengthy global supply chains lead to risks in terms of human rights compliance. It is possible that we indirectly contribute to the impact on circumstances elsewhere. The developments in supply chains and elsewhere have an impact on deliveries to Alliander. Shortages, logistical problems and conflicts affect the completion of the work package and inventories (manufactured capital) and can lead to price disadvantages or losses in terms of financial capital.

Relationship with Alliander's impact model

Indicators for financial, manufactured and social capital

Relationship with risks

Capacity for change, Future-proof investments

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.

Correlation with strategy

Reliability, affordability, accessibility

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. In addition, all suppliers must comply with the Alliander Code of Conduct including minimum ILO, OECD and UN requirements.

Alliander’s assessment and contribution

As well as promoting continuous awareness of our Code of Conduct, which is mandatory for all suppliers, we purchased 28% of our procurement volume based on circular principles in 2022. We focused more on the accuracy of the raw materials passports. 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. The assessment of how suppliers recognise and comply with fundamental requirements relating to human rights, safety and the environment is part of our CSR and procurement policy.

Lessons learned

When production relocates from sites in Europe to more risky countries in terms of working conditions, safety and the environment, we aim to perform a new audit in the local setting. We then reassess the working conditions, safety and environmental aspects.

Stakeholder information

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

• High reliability of supply at low costs

Input and relationships relevant to topic

Description

As a network operator, we use large quantities of materials and, indirectly, of raw materials. We have a responsibility to do the best we can when it comes to the sourcing and use of our materials. For a few years now, we have acted to integrate circularity into the impact of our business operations.

The global demand for materials and products seriously impacts stocks of raw materials, requires a great deal of energy and leads to increased scarcity of critical materials. Alliander procures large quantities of materials such as assets containing metal, electronic equipment, meters and clothing. The energy transition and growing demand mean that our requirement for resources is increasing dramatically, which has a corresponding effect on the associated impact. The procurement, usage, waste and emissions of CO₂ and other substances cause ecological harm. Production conditions in supply chains can have negative effects on working conditions. As a result, we have an impact on natural and human capital all over the world. By the same token, developments in supply chains and elsewhere have an impact on deliveries to Alliander. Shortages, logistical problems and conflicts affect the completion of the work package and inventories (manufactured capital) and can lead to price disadvantages or losses in terms of financial capital.

Relationship with Alliander's impact model

Indicators for financial, manufactured, natural and social capital.

Relationship with risks

Capacity for change, Future-proof investments

Stakeholder expectation

With an annual procurement volume of about €1.5 billion, we are a major purchaser of products and services. Stakeholders expect us, together with our suppliers, to ensure that our procurement is as sustainable as possible. If we and our suppliers can move in unison towards greater circularity, we can generate a significant positive impact through our supply chains. We know from experience that this requires different arrangements and practices.

Relationship with strategy

Reliability

Our long-term objective

We are actively seeking to improve our performance in terms of circularity. For example, we are planning circular solutions with our suppliers, working to extend the useful life of assets and redeploying materials for a second life in our operations. Our waste policy focuses on prevention and proper separation.

Each year we improve our circular procurement and redeployment performance.

Alliander’s assessment and contribution

Pooling redeployment initiatives across organisational units generates significant financial savings and reductions in CO₂ emissions. By proactively having compact stations refurbished, we were able to deliver 51 units internally and boost feasibility through the short lead times. We cooperate with supply-chain partners and other network companies and explore further opportunities for applying circular principles. The proportion of procurement that is circular is gradually increasing. Ultimately, we will limit damage to natural capital by reducing the use of new products and raw materials.

Lesson learned

High demand for materials to implement the energy transition necessitates a joint roadmap and approach for a circular economy. 

Stakeholder information

• Organisation: Circular Operations