National Grid Responsible Business Report: Reporting Methodology
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National Grid Responsible
Business Report:
Reporting Methodology
About this document For newly acquired businesses and Changes to global
new operations, our policy is to include operations
This document explains the definitions, these within the metric reporting of our
scope and calculation methodology Responsible Business Report as soon For our 2020/21 reporting, the only
for preparing and verifying the key as practically possible, and ideally, no change to our global operations
performance metrics reported within later than the reporting period after within the last two years is the June
the data tables on pages 58 to 64 in the first full financial year of ownership. 2019 acquisition of National Grid
our Responsible Business Report Therefore, depending on the timing Renewables (US) and the launch of
(“RBR”) 2020/21 (“the data tables”), of acquisition and commencement of the IFA2 interconnector (“IFA2”) in
available on our website1. operations, this could be up to two October 2020.
years following the event, at the latest.
This document is reviewed and updated Newly sold or disposed operations, will National Grid Renewables has not yet
annually alongside our Responsible be removed from our reporting from been included in our environmental or
Business Reporting to reflect any the date at which they leave the Group. people metrics. IFA2 is not yet included
changes made to the metrics we report Any exceptions to how acquisitions within our relevant environmental metrics
in our RBR data tables, as well as any and disposals are handled within our but has been included within all other
changes made to the scope, definitions reporting will be clearly stated and metrics. We are in the process of setting
and calculation methodologies of explained within the relevant metric up robust data collection and reporting
individual metrics. This document section of this document. processes for these operations and aim
was last updated May 2021. to include the complete contributions of
All metrics reported within the RBR data National Grid Renewables and IFA2 in all
tables are subject to our internal quality our key performance metrics within our
Foundations of reporting control review and approval processes. 2021/22 and 2022/23 RBRs respectively.
Further to this, we have commissioned
Our Responsible Business Report PricewaterhouseCoopers (PwC) to
covers all parts of our business provide independent limited assurance
operations globally. As our UK business over our most material metrics. Their
reports in line with a financial year Assurance Opinion for our 2020/21
(1 April – 31 March) and US business RBR can be found on our website1.
on a calendar year basis (1 January –
31 December), our metrics have been
calculated on this basis, unless stated
otherwise. All metrics include the results
of the company and its subsidiaries but
excludes joint ventures to which we are a
part of. Where specific sites, operations
or subsidiaries have been excluded from
the scope of certain metrics, a clear
statement and justification has been
made within the relevant metric section
of this document.
1. https://www.nationalgrid.com/responsibility/responsible-business-report
1 National Grid Responsible Business Report: Reporting Methodology 2020/21Contents
Metrics
1 Communities 3 Environment 4 Governance
1.1 Average energy bill charged to US 3.1 Scope 1 and Scope 2 greenhouse gas 4.1 Diversity of the Board2
households2 (GHG) emissions2 4.2 % employees that have undertaken
1.2 Contribution of NG UK’s transmission 3.2 Scope 3 greenhouse gas emissions2 ethics and fraud & bribery training
costs to consumer bills2 3.3 SF6 emissions2
1.3 Number of qualifying volunteering 3.4 Air quality – Emissions from stationary 5 People
hours sources (NOx, SOx and PM)2
5.1 UK gender pay gap2
1.4 Network reliability – % Availability 3.5 GHG emissions and total air miles from
5.2 US gender pay gap2
1.5 Interconnector reliability – % air travel2
5.3 UK ethnicity pay gap2
Availability 3.6 % Renewable energy purchased
5.4 US ethnicity pay gap2
1.6 Consumer Trust Survey (US) 3.7 Number of hectares of land we have
remediated 5.5 Gender and ethnicity % of joiners,
1.7 Number of young people provided
promotions and leavers2
access to skills development 3.8 Total office waste
5.6 Diversity of the workforce, senior
1.8 Fatalities 3.9 % office waste diverted from landfill
leadership group and hires in new
1.9 Lost time injury frequency rate (LTIFR) 3.10 Renewables enabled by direct talent programmes2
investment via National Grid
5.7 % of colleagues completed
Renewables
2 Economy unconscious bias training
3.11 Renewable energy connected
2.1 Investment in energy infrastructure 5.8 Living wage paid (UK only)
to US and UK transmission and
2.2 Investment by NG Partners distribution grids 5.9 Employee engagement score
(from Grid:Voice)
2.3 % of supplier payments paid to 3.12 Total energy consumption
contractual term 5.10 ‘Safe to say yes’ index in Grid: Voice
3.13 Office energy consumption
2.4 % of suppliers with carbon
3.14 Interconnector capacity
reduction target
3.15 Electric vehicle fleet (light-duty)
2.5 Jobs (worldwide)
2. Metric externally assured by PwC. The information include within this document for these metrics serves as the foundation for PwC’s assurance procedures.
2 National Grid Responsible Business Report: Reporting Methodology 2020/21Reporting standards Global Reporting Initiative (GRI) Our 2020/21 Responsible Business Report has been prepared in accordance with the GRI Standards (core option). Further details on the requirements and our disclosures can be found in our 2020/21 GRI Index1 above. Sustainability Accounting Standards Board (SASB) Our 2020/21 Responsible Business Report has been prepared with reference to the applicable Sustainability Accounting Standards Board (SASB) utilities sub-sector standards. Further details on the requirements and our disclosures can be found in our 2020/21 SASB Index3. 3. Low-income customers are defined as those who qualify for the Low Income Home Energy Assistance Program (LIHEAP). 3 National Grid Responsible Business Report: Reporting Methodology 2020/21
Metrics
1 – Communities
1.1 – Average energy bill charged New York Public Service Commission: This equation is adapted to reflect each
to US households respective metric in terms of the product
1.1.1 – Metric • Niagara Mohawk4 (upstate, electricity) sold (gas or electricity) and customer
Average cost per US household. • Niagara Mohawk (upstate, gas) group (average or low income).
This metric separates the costs to • KEDNY (downstate)5
electricity and gas customers as well 1.2 – Contribution of NG UK’s
as Low Income and other customers • KEDLI (downstate)6 transmission costs to consumer
due to the distinct characteristics of bills
these consumer groups. Massachusetts Department of 1.2.1 – Metric
Public Utilities: UK National Grid element of the average
1.1.2 – Definitions domestic consumer bill.
Average US electricity customer • Massachusetts Electric/
bill is the average total bill charged to all Nantucket Electric 1.2.2 – Definitions
National Grid US electricity customers, • Massachusetts Gas UK average domestic bill is the
excluding those who participated in average gas/electric bill for non-business
low-income program3. Rhode Island Public Utilities Commission: customers in the UK.
Average US gas customer bill is the • Narragansett Electric The National Grid element is the
average total bill charged to all National • Narragansett Gas portion of the average UK domestic bill
Grid US gas customers, excluding associated with the transmission costs
customers who participated in low- The metrics only include customers who for the gas/electricity attributable to
income1 program. have received a service from National National Grid.
Grid for 12 consecutive months as at
Average low income (only) the reporting date. 1.2.3 – Scope
electricity customer bill is the This metric includes bill impact data for
average total bill charged to National All metrics exclude customers who UK National Grid Electricity Transmission
Grid US electricity customers who have received a temporary credit or charge on (NGET), National Grid Gas Transmission
participated in a low-income program1. their bill that was in addition to tariff rates (NGGT)7 and internal Electricity System
(a “rider”). Operator (ESO) costs.
Average low income (only) gas
customer bill is the average total Average low-income customer bill It does not include the impact of external
bill charged to National Grid US gas metrics only include customers who ESO costs as these costs are a pass-
customers who have participated in have participated in a low-income through cost managed on behalf of the
a low-income program1. program for 12 consecutive months. industry, rather than being an internal
ESO cost.
The metrics represent the total bill The metrics do not include adjustments
charged to National Grid customers, made to bills after the reporting date. UK National Grid do not directly
including taxes and fees (the “fully charge consumers therefore the metric
loaded bill total”). This metric is reported in line with the approximates the network charges
financial year, 1 April to 31 March. proportion of the Energy Supplier
1.1.3 – Scope bills. It excludes that proportion of our
The metrics combine the tariff charges 1.1.4 – Calculation methodology revenues that are charged to other
managed under all National Grid US For customer accounts that meet the parties e.g. costs levied on companies
rate plans, as listed below. respective metric definitions, the total of entering energy onto the network.
the last 12 consecutive bills is identified These costs are excluded because
from the billing system. there is no clear approach identified
to estimate how much of those costs
An arithmetic average is then calculated contribute to household bills.
by: Average bill = the total charged to
customer ($)/total number of customers.
4. Both transmission and distribution, excluding stranded costs.
5. KeySpan Energy Delivery New York (the Brooklyn Union Gas Company).
6. KeySpan Energy Delivery Long Island (KeySpan Gas East Corporation).
7. The internal Gas Transmission Operator (GTO) and Gas System Operator (GSO) costs are both contained within NGGT.
4 National Grid Responsible Business Report: Reporting Methodology 2020/211 – Communities continued
This metric is reported in line with the The average costs of NGGT, NGET and 1.4 – Network reliability –
financial year, 1 April to 31 March. NGESO are then combined to calculate % Availability
the National Grid element of the average 1.4.1 – Metric
1.2.4 – Calculation methodology UK domestic customer bill. The % availability of the following
The costs are identified from the charges systems over the last year:
set by National Grid to Energy Suppliers. 1.3 – Number of qualifying
volunteering hours • US Electricity Transmission (“ET”)
NGGT costs are identified from our 1.3.1 – Metric • US Electricity Distribution (“ED”)
internal charging models that are used to Total volunteering hours completed • UK Gas Transmission (“GT”)
publish final tariffs to the industry. on behalf of National Grid since
1 April 2020. • UK ET
For NGET, the portion of the average
Transmission Use of System Charges 1.3.2 – Definitions 1.4.2 – Definitions
(‘’TNUoS’’) tariff for the relevant year, Volunteering hours: Any time spent Potential availability: the maximum
attributable to NGET, is derived from volunteering on behalf of National possible operational volume of
the charges published by the ESO8. Grid (including any preparation our systems.
This tariff is then multiplied by an work required).
estimate of the proportion of annual Actual availability: The operational
consumption that takes place during 1.3.3 – Scope volume delivered over the relevant period.
peak times to estimate charges per This metric includes all National Grid
customer. The charge to customer employees, and those working on behalf 1.4.3 – Scope
is scaled up by the average loss of National Grid. US ET and US ED availability excludes
adjustment factor as published by major storm days15.
Ofgem9 to account for losses and then Data is based on hours recorded via
multiplied by the average domestic internal reporting systems or as reported Metrics is based on performance data
demand, also published by Ofgem10, by our charity partners as relevant. recorded by the respective systems’
to determine an average cost to operating systems.
UK households. This metric is reported in line with the
financial year, 1 April to 31 March, and The metric is reported in line with the
The NGESO Internal Revenue is cumulatively by summing all data from financial year, 1 April to 31 March except
identified from the ESO’s calculation 1 April 2020 to the relevant year for the US ED system which reports with
of its Maximum Allowed Revenue for end date. reference to the calendar year, 1 January
Internal Revenue. This is adjusted by to 31 December.
50% to reflect the costs recovered from 1.3.4 – Calculation methodology
Energy Suppliers for Balancing Services Volunteering hours are initially recorded 1.4.4 – Calculation methodology
Use of System (“BSUoS”) charges as by those overseeing the activities. For the system corresponding to the
per the methodology prescribed by the On an annual basis the data is collated respective definition, actual availability
Connection and Use of System Code11 to summed to the annual total annual for the last 12 months is identified.
(“CUSC”) and divided by the total annual volunteering hours.
demand, as published by the ESO12, to The % availability for the year is then
estimate an average tariff charged by the The total annual volunteering hours calculated by: % availability = (actual
ESO. That charge to customer is scaled are added to the total hours reported availability/potential availability) * 100.
up by the average loss adjustment for each financial year since 1 April
factor as published by Ofgem13 to 2020 to calculate the cumulative
account for losses and then multiplied volunteering hours.
by the average domestic demand, also
published by Ofgem14, to determine an
average cost to UK households.
8. Source: https://www.nationalgrideso.com/document/162431/download
9. Source: https://www.ofgem.gov.uk/publications-and-updates/default-tariff-cap-level-1-october-2020-31-march-2021
10. Source: https://www.ofgem.gov.uk/system/files/docs/2019/10/tdcvs_2019_open_letter_0.pdf
11. Source: https://www.nationalgrideso.com/document/91411/download
12. Source: https://www.nationalgrideso.com/industry-information/charging/balancing-services-use-system-bsuos-charges
13. Source: https://www.ofgem.gov.uk/publications-and-updates/default-tariff-cap-level-1-october-2020-31-march-2021
14. Source: https://www.ofgem.gov.uk/system/files/docs/2019/10/tdcvs_2019_open_letter_0.pdf
15. Major storms are defined by respective US States.
5 National Grid Responsible Business Report: Reporting Methodology 2020/211 – Communities continued
1.5 – Interconnector reliability – 1.6 – Customer Trust Survey (US) 1.6.4 – Calculation methodology
% Availability 1.6.1 – Metric For each of National Grid’s US markets,
1.5.1 – Metric Percent of survey respondents who the % of respondents who trust National
The % availability of the following trust National Grid to provide the advice Grid is calculated as: total respondents
systems over the last year: needed to make good energy decisions. who answer 8-10 in the survey question
/ total survey respondents.
• IFA Interconnector 1.6.2 – Definitions
• IFA2 Interconnector (from go-live date Survey: supported by a third Overall results are then weighted by
of 21 January 2021) party research provider, National market, based on the proportion of
• BritNed Interconnector Grid continuously survey their US customers in each market that make
based residential customers via an up National Grid’s total US residential
• Nemo Interconnector online Brand Image and relationship customer base.
survey. The Survey asks customers
1.5.2 – Definitions “Considering everything you may 1.7 – Number of young people
Potential availability: the maximum know about National Grid, how much provided access to skills
possible operational volume of do you trust National Grid to provide development
our systems. you the advice you need to make 1.7.1 – Metric
good energy decisions?”. Total people provided access to skills
Aggregate availability: Potential development since 1 October 2020.
availability less any planned outages, Respondents: Residential customers
short notice planned outages or trips. who submit a response to National 1.7.2 – Definitions
Aggregate availability includes all Grid’s online survey. Skills development: Programmes
unavailability, from the point at which operated by National Grid intended to
the capacity becomes unavailable to Trust: Respondents score National Grid upskill participants. The programmes
the point at which the link returns to full on a 1-10 point scale. where 1 is ‘Do not are not restricted to STEM skills;
service and it can flow any nominated trust advice at all’ and 10 is ‘Trust advice however, “STEM” (Science, technology,
volume up to its Nominal Capacity. completely’. Respondents who answer engineering and mathematics) skills are
8, 9 or 10 are considered to ‘trust expected to make up the majority of
1.5.3 – Scope National Grid’s advice’. our programmes.
Metrics is based on performance data
recorded by the respective systems’ 1.6.3 – Scope Participant: a participant comes from
operating systems. The metric considers US residential one of the lower income communities
customers only and excludes customers we serve16.
The metric is reported in line with the for whom National Grid do not have an
financial year, 1 April to 31 March. email address.
1.5.4 – Calculation methodology Data collected by a third part research
For the system corresponding to the vendor and reported to National Grid on
respective definition, actual availability a monthly basis.
for the last 12 months is identified.
This metric is reported in line with the
The % availability for the year is then financial year, 1 April to 31 March.
calculated by: % availability = (aggregate
availability/potential availability) * 100.
16. Lower income communities based upon UK ONS and US Census data.
6 National Grid Responsible Business Report: Reporting Methodology 2020/211 – Communities continued
1.7.3 – Scope 1.8.3 – Scope 1.9.3 – Scope
This metric includes all participants Employees, contractors and members Employees, contractors and agency staff
who have accessed our skills of the public are in scope. are in scope.
development programmes.
We do not include member of the public UK, US and NGV operations are covered
Data is based on hours recorded via fatalities where they relate to our asset by this metric.
internal reporting systems or as reported (on non-National Grid owned property)
by our charity partners as relevant. if an individual trespasses on a National Lost time injury figures are recorded,
Grid asset and is fatally injured, or a road tracked and frequently reported via the
This metric is reported in line with the traffic accident where the vehicle came Group’s incident management systems.
financial year, 1 April to 31 March, and in contact with an asset and there was
cumulatively by summing all data from a fatality. This metric is reported in line with the
1 April 2020 to the relevant year financial year, 1 April to 31 March, and
end date. This metric is reported in line with the cumulatively by summing all data from
financial year, 1 April to 31 March, and 1 April 2020 to the relevant year
1.7.4 – Calculation methodology cumulatively by summing all data from end date.
Participants on our skills development 1 April 2020 to the relevant year
programmes are initially recorded within end date. 1.9.4 – Calculation methodology
the respective systems of our skills Total number of lost time incidents
development programmes. On an annual 1.8.4 – Calculation methodology throughout the reporting period are
basis the data is collated to summed to All fatalities in the reporting period divided by total hours worked by the
the annual total annual participants on are summed. workforce and multiplied by 100,000.
our skills development programmes.
1.9 – Lost time injury frequency rate
The total annual participants on our skills (LTIFR)
development programmes are added to 1.9.1 – Metric
the total participants previously reported Total number of lost time incidents
since 1 October 2020 to calculate the incurred as a portion of total hours
cumulative participants on our skills worked by the workforce, multiplied
development programmes. by 100,000.
1.8 – Fatalities 1.9.2 – Definitions
1.8.1 – Metric Lost time incidents are defined as
Number of fatal injuries associated events which cause injury and a loss of
with work or activity undertaken by time beyond the shift during which the
National Grid. incident occurred, consistent with the
UK HSE definition.
1.8.2 – Definitions
Fatal injuries are injuries that directly
results in death.
7 National Grid Responsible Business Report: Reporting Methodology 2020/212 – Economy
2.1 – Investment in energy 2.2.2 – Definitions 2.3 – % of supplier payments paid to
infrastructure NGP refers to National Grid Partners, contractual term
2.1.1 – Metric our dedicated corporate innovation and 2.3.1 – Metric
Annual investment into energy investment function. % of supplier payments made within the
infrastructure (£). contractual term.
2.2.3 – Scope
2.1.2 – Definitions This metric includes all investments 2.3.2 – Definitions
Investment in energy infrastructure made by NGP over the course of the Contractual term refers to the period
refers to capital expenditure on year. NGP was formed to identify and between the date an invoice is received
additions to property, plant and invest in technologies and innovation and when the invoice is due to be paid.
equipment and non-current intangibles. that would ultimately benefit customers.
Investments in and loans to joint With that founding goal, it is expected 2.3.3 – Scope
ventures and associates are also that each investment made by NGP Our reporting considers invoices that are
included. It is reported in GBP (£). will contribute to furthering the Group’s paid over the course of the financial year.
Responsible Business priorities as
2.1.3 – Scope outlined in the Responsible Business If an invoice is reversed or cancelled it is
This metric includes all capital Charter. Specifically, the Group’s excluded from the calculation.
investments made by National Grid plc. commitment to invest in developing
technologies and innovations that benefit Supplier invoice data is continuously
Data is based on actual investment data our customers and wider society. monitored and tracked via our financial
(not estimated). management systems.
Data on amounts invested is
This metric is reported in line with the continuously tracked and updated as This metric is reported in line with the
financial year, 1 April to 31 March. new investments are made. financial year, 1 April to 31 March.
2.1.4 – Calculation methodology Any returns on investments realized 2.3.4 – Calculation methodology
Investment data is reported and tracked during the year is not netted against the The metric is calculated based on the
via our operational management amount invested. volume of invoices settled in the year
and reporting systems. All invested as follows: (Total invoices paid within
amounts made over the previous This metric is reported in line with the the contractual payment terms) /
year are summed to calculate the financial year, 1 April to 31 March. (Total invoices paid) * 100.
total annual capital investment figure.
Our annual investments are measured in 2.2.4 – Calculation methodology
accordance with International Financial Investment data is continuously reported
Reporting Standards (IFRS). and tracked over the course of the
year via our operational management
2.2 – Investment by NG Partners and reporting systems. All of NGP’s
2.2.1 – Metric invested amounts made over the
Annual investments by our NGP previous year are summed to calculate
investment fund. the total investments in technology
and innovation.
8 National Grid Responsible Business Report: Reporting Methodology 2020/212 – Economy continued
2.4 – % of suppliers with carbon 2.5 – Jobs (worldwide)
reduction target 2.5.1 – Metric
2.4.1 – Metric Total Group workforce.
% of National Grid’s top 250 suppliers
who have an active carbon reduction 2.5.2 – Definitions
target by 2030. Total workforce refers to all permanent
National Grid employees, regardless
2.4.2 – Definitions of paygrade and how long they have
National Grid’s top 250 suppliers is worked at National Grid. Included are
determined by total spend data. those on parental leave or on short/
long term leave of absence, part
Carbon reduction targets are targets time workers, graduates and interns.
to reduce carbon emissions as defined Excluded are temporary employees,
by the Carbon Disclosure Project (CDP). contingent workers, manage service
providers and non-executive
2.4.3 – Scope Board members.
Our reporting considers targets
set by our suppliers at the time of 2.5.3 – Scope
performing the review during the current Includes the total National Grid
reporting period. workforce across all parts of
the business.
All Group suppliers are considered when
determining the top 250. The number of employees at each
respective reporting year end is
Total supplier spend is determined with presented (31 March).
via our financial management systems.
2.5.4 – Calculation methodology
2.4.4 – Calculation methodology Data is extracted from the HR
The metric is calculated as follows: (# of management system and the sum
top 250 suppliers with carbon reduction of workforce members is calculated.
targets) / (250 * 100).
9 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment
3.1 – Scope 1 and Scope 2 Table 1: Scope of National Grid’s Scope 1 and 2 emissions sources and
greenhouse gas emissions business included
The reporting of National Grid’s total
carbon emissions in our Annual Report Emissions Scope –
scope Scope – emissions sources for inventory Business included
and Accounts is a legal requirement
under The Companies Act 2006 Scope 1 LIPA electricity generation US
(Strategic Report and Directors’
Leaks and venting from our gas transmission and UK, US, NGV
Reports) Regulations 2013.
distribution systems and LNG facilities
Our Scope 1 and Scope 2 emissions SF6 leaks from our electric equipment UK, US, NGV
are calculated and reported in line with
the Greenhouse Gas Protocol Corporate
Fleet vehicles use UK, US,
Accounting and Reporting Standard
(Revised17 and the GHG Protocol Scope
Company car emissions where vehicle is used for UK, US, NGV
2 Guidance: An amendment to the GHG
business travel
Protocol Corporate Standard18.
Gas-fired compressor use UK
3.1.1 – Metric
We report our Scope 1 and Scope
Energy consumption at our facilities UK, US, NGV
2 emissions (in tCO2e) separately for
our non-NGV UK operations (“UK”),
Scope 2 Line losses from our electricity transmission and UK, US
non-NGV US operations (“US”) and
distribution lines
NGV businesses (“NGV”) as well as a
consolidated total. The data we report is: Use of electric drive compressors in our gas business UK
• Scope 1 emissions (tCO2e)
Energy consumption at our facilities UK, US, NGV
• Scope 2 Location-based emissions
(tCO2e)
• Scope 2 Market-based emissions
incorporated joint ventures where we Table 1 above presents the scope in
(tCO2e)
do not have operational control and are terms of emissions sources included
3.1.2 – Definitions therefore excluded. for Scope 1 and 2 emissions reporting.
Scope 1 emissions are direct
emissions from the operational activities Consistent with our policy for reporting UK and NGV emissions are reported
of National Grid. new acquired businesses and new in line with the financial year (1 April
operations (see ‘Foundations of to 31 March) and US emissions are
Scope 2 emissions are indirect reporting’), National Grid Renewables reported in line with the calendar year
emissions from the energy purchased (Geronimo site) and the IFA2 (1 January to 31 December). This reflects
and used by National Grid. interconnector are currently excluded the regulatory reporting requirements
from our emissions reporting. We aim and processes for the US.
3.1.3 – Scope to include National Grid Renewables’,
The operational control principal acquired in 2019/20, contributions to 3.1.4 – Calculation methodology
as set out by the GHG Protocol is this metric within our 2021/22 RBR (See Annual Scope 1 and 2 emissions data
applied across all our emissions and ‘Foundations of reporting’). IFA2 was is added together from the UK, US
environment metrics. All operations launched in October 2020, consistent and NGV to get the Group level totals
where National Grid has 100% of with our policy for reporting newly (in tonnes of CO2e). See Table 2 below
operational control and the full authority acquired businesses we aim to include for detail on how emissions relevant to
to introduce and implement its operating IFA2’s contributions to this metric within each source in our emissions inventory
policies, are included within the our 2022/23 RBR. are calculated.
reported metrics.) NGV’s BritNed and
Nemo interconnector operations are
17. https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf
18. https://ghgprotocol.org/sites/default/files/ghgp/standards/Scope%202%20Guidance_Final_0.pdf
10 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
Table 2: Calculation methodology for Scope 1 and 2 emissions
Emissions scope Emissions sources for inventory Calculation methodology
Scope 1 Long Island Power Authority (LIPA) electricity CO2 emissions tracked using the Continuous Emissions Monitoring System
generation (CEMS).
Leaks and venting from our gas transmission UK and NGV: Volume of natural gas vented is recorded at individual sites.
and distribution systems and LNG facilities Emissions calculated using the following formula: Kg gas vented x Gas
Transmission (GT) conversion factor x GWP of CH4. The GT conversion
factor is based on gas composition of the entire network.
US: Emissions from methane leakage are estimated using approved
EPA methodology.
SF6 leaks from our electric equipment See Section 3.3.
Fleet vehicles use UK: Fuel purchased is recorded by volume. Emissions calculated via: Litres
of fuel x carbon conversion factor. DEFRA/BEIS conversion factors applied
for petrol, diesel, and aviation fuel.
US: Fuel utilised for fleet are recorded on a fleet services system and
converted to KT CO2e using EPA conversion factors.
Company car emissions where vehicle is used Miles travelled are captured through our expenses recording systems in both
for business travel UK and US. Emissions calculated via: Miles travelled x carbon conversion
factor. DEFRA/BEIS conversion factors are applied by fuel type.
Company owned plane and helicopter The volume (gallons) of fuel used is recorded internally by the Aviation
Process and Performance team. Jet fuel is converted to CO2e using emission
factors from the US EPA Emission Factor Hub.
Gas-fired compressor use Volume of gas combustion is tracked at all our compressor sites. Emissions
calculation is: Volume of gas x natural gas combustion factor.
Energy consumption at our facilities Gas consumption measured by volume. Volume of gas x natural gas
combustion factor.
Scope 2 Line losses from our electricity transmission UK: ESO calculate energy losses on the GB Transmission network by
and distribution lines Transmission Owner. This is multiplied by the DEFRA/BEIS published carbon
intensity of electricity factor.
Kg kWh x electricity carbon intensity factor (gCO2e / kWh)
US: Energy losses on the US Transmission and Distribution networks
multiplied by the published EPA e-Grid factors for the relevant region.
Electricity losses (KWh) X eGRID/2204.62 (conversion from lbs to grams)
Use of electric drive compressors in our Electricity consumption multiplied by DEFRA/BEIS carbon conversion factor
gas business for electricity intensity.
Electricity consumption at our facilities Electricity consumption multiplied by DEFRA/BEIS and EPA carbon intensity
of electricity factors.
11 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
3.2 – Scope 3 greenhouse gas 3.2.3 – Scope from our emissions reporting. We aim
emissions National Grid apply the operational to include National Grid Renewables’,
Our Scope 3 emissions are calculated control principal to determine operations acquired in 2019/20, contributions to
and reported in line with the Greenhouse that are in scope for emissions and this metric within our 2021/22 RBR
Gas Protocol Corporate Accounting environmental reporting. See section (See ‘Foundations of reporting’).
and Reporting Standard (Revised)16, the 3.1.3 for further detail. For the purposes IFA2 was launched in October 2020,
GHG Protocol Corporate Value Chain of reporting on our Scope 3 emissions, consistent with our policy for reporting
(Scope 3) Accounting and Reporting NGV operations are reported within our newly acquired businesses we aim to
Standard19 and the Technical Guidance UK figures. include IFA2’s contributions to this
for Calculating Scope 3 Emissions: metric within our 2022/23 RBR.
Supplement to the Corporate Value Consistent with our policy for reporting
Chain (Scope 3) Accounting and new acquired businesses and new Table 3 below presents the scope in
Reporting Standard20. operations (see ‘Foundations of terms of emissions sources included
reporting’), National Grid Renewables within each Scope 3 category.
3.2.1 – Metric (Geronimo site) and the IFA2
The scope 3 emissions categories we interconnector are currently excluded
report are:
• Cat. 1 (Purchased Goods and Table 3: Scope of National Grid’s Scope 3 emission sources by category
Services) emissions (tCO2e) and business included
• Cat. 3 (Fuel & Energy Related Scope 3
Activities) emissions (tCO2e) emission Scope –
• Cat. 5 (Waste Generated in category Scope – emissions sources Business included
Operations) emissions (tCO2e) Cat. 1 Includes all products and services purchased by UK, US
• Cat. 6 (Business Travel) emissions (Purchased National Grid Procurement, from stationary to
(tCO2e) Goods and construction products.
Services)
• Cat. 7 (Employee Commuting)
emissions (tCO2e) Cat. 3 (Fuel Includes any emissions associated with the generation US
& Energy of electricity purchased and sold by National Grid to
• Cat. 11 (Use of Sold Products)
Related customers. This is calculated from metered supply and
emissions (tCO2e) Activities) regional carbon factors.
• National Grid total scope 3
Cat. 5 (Waste Includes all waste generated from our operations UK, US
emissions (tCO2e)
Generated in including office waste, operational waste and
Operations) construction waste.
3.2.2 – Definitions
Scope 3 emissions are defined Cat. 6 Includes employee business travel, not in National Grid UK, US
as those which are not directly from (Business owned vehicles (air travel, hire cars, personal cars,
our operations or activities but occur Travel) taxis and rail travel). Business travel not recorded in our
systems (e.g. not expensed) is not included, however,
within our value chain which we can policies are in place to minimise this.
have influence over. We report Scope
3 emissions across six categories as Cat. 7 Includes emissions based on commuting distances of UK, US
defined by the GHG Protocol (see Table (Employee our employees to their offices and includes travel types
3 below). Commuting) such as bus, car and train.
Cat. 11 (Use This includes any emissions associated with the US
of Sold use of gas and electricity sold by National Grid to its
Products) customers.
19. https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf
20. https://ghgprotocol.org/sites/default/files/standards/Scope3_Calculation_Guidance_0.pdf
12 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
Scope 3 emissions from Cat. 1, 3 and reported in line with the calendar year 3.2.4 – Calculation methodology
11 made up >99% of our total scope 3 (1 January to 31 December), in line with Annual Scope 3 emissions data across
emissions in 2019/20 and are therefore the regulatory reporting requirements. all categories reported, is summed to
included within scope for external The only exceptions, relevant to Scope get the Group level total (in tonnes of
assurance. Cat. 5, 6 and 7 are currently 3 emissions reporting, are with Cat.1 CO2e). See Table 4 below for detail
excluded from external assurance as (Purchased goods and services) and on how emissions in each category
these do not contribute materially to our the air travel element of Cat.6 (Business are calculated.
total Scope 3 emissions. travel) which are reporting on a financial
year basis for the US. Total Scope 3 emissions are a sum
UK and NGV emissions are reported of Cat. 1, 3, 5, 6, 7 and 11 totals.
in line with the financial year (1 April
to 31 March) and US emissions are
Table 4: Calculation methodology for National Grid’s Scope 3 emissions by category
Scope 3 emission category Calculation methodology
Cat. 1 (Purchased goods and services) We apply the spend-based method for estimating CO2e for all products and services purchased
by National Grid, based on UK government emission factors provided in the UK Government
Environmental Reporting Guidelines – Annex E. The formula applied is: Spend (£) X Supply chain
emission factor for product category.
Our Group spend figures are sourced from the UK and US procurement teams and numbers are
exclusive of sales tax. As specified by the Guidelines (Annex E), sales taxes must be included
in the cost of purchased goods before the emission factor is applied. As sales tax is 20% (VAT)
in the UK for the majority of our purchased goods and services, to ensure we account for this
and take a conservative approach, we have applied a 20% uplift to our net purchased costs
across our UK data. For US data, we have assumed net $ spend is equivalent to net £ spend
and therefore applied a consistant 20% uplift to determine an appropriate base for align the
conversion factors as per the Guidance above. Our baseline and reported comparative Scope 3
Cat.1 emissions have also been adjusted to include 20% sales tax.
Cat. 3 (Fuel & energy related activities) Calculated from the metered supply (actual data) and the regional carbon grid factors (from EPA).
Emissions from electricity generation are calculated using the formula: Electricity generated (KWh)
X eGRID/2204.62 (conversion from lbs to grams) X Global Warming Potential (GWP); equation
from EPA eGRID.
Cat. 5 (Waste generated in operations) Estimated from tonnes of waste types generated, data from our waste providers on the disposal
method and DEFRA/BIES conversion factors. The formula applied is: Waste disposed of (tonnes)
X Emission factor.
Cat. 6 (Business travel) Calculated by: Distance travelled on business (miles) X Emission factor. Carbon emissions factors
used are UK industry standard factors from DEFRA/BEIS or EPA industry standard factors for US
air travel and are specific for each type of transport.
Cat. 7 (Employee commuting) Estimated from UK employee commuting survey data which is extrapolated to represent the
entire National Grid business using the FTE employee count at financial year end (31 March).
Emissions are calculated by: Distance travelled to work (miles) X Emission factor. Emission factors
are from EFRA/BIES, specific for each type of transport.
Cat. 11 (Use of sold products) Calculated based on sold gas (actual data). Emissions from gas sold are calculated using the
following formula: Methane Correction Factor (MCF) X Higher Heating Value (HHV) x Emission
Factor (EF); equation from EPA 40 CFR Part 98 Subpart NN-1.
13 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
3.3 – SF6 emissions 3.3.4 – Calculation methodology 3.4 – Air quality – Emissions from
Sulphur hexafluoride (“SF6”) is a highly- Annual SF6 emissions data is added stationary sources (NOx, SOx and
regulated gas in both the UK and US. together from the UK, US and NGV PM) emissions
In the UK, we are required to monitor businesses to get the Group level total National Grid are required to monitor
and report our SF6 emissions to our (in tonnes of SF6). This is converted to and report air emissions to regulatory
regulator OFGEM on an annual basis. tCO2e using the IPCC GWP factor: 1kg bodies in both the UK (OFGEM) and US
In the US, we are required to monitor SF6 = 22,800kg CO2e. (EPA) on an annual basis. As such, our
SF6 for the Environmental Protection air emissions reporting is carried out in
Agency (“EPA”) and report should they For NGET and the NGV IFA 1 site, SF6 line with the monitoring approaches and
exceed a defined threshold. In selected readings are taken from the gas flow methodologies specified and approved
states, we are also required to report meters and the top-up masses recorded by our regulators.
SF6 emissions to the state authority. on to our systems. Top-ups over the
Our SF6 reporting is carried out in 12-month reporting period are summed 3.4.1 – Metric
line with the monitoring approaches to get the annual SF6 emissions for the Air emissions from stationary sources
and methodologies approved by UK and NGV IFA 1 site. (NOx, SOx and PM). The data we
our regulators. report is:
For the US, SF6 emissions are calculated
3.3.1 – Metric using a mass balance approach. • NOx emissions (metric tonnes)
Total SF6 emissions (in CO2e) from The following formula is applied: SF6 • SOx emissions (metric tonnes)
our operations. emissions = (Change in SF6 inventory1) • PM emissions (metric tonnes)
+ (Purchases/acquisitions of SF62) –
3.3.2 – Definitions (Sales/disbursements of SF63) – 3.4.2 – Definitions
SF6 is a powerful greenhouse gas with (Change in Nameplate capacity4). NOx SOx and PM (are air
a global warming potential of 22,800 polluting gases released from
times that of CO2. The biggest use of 1. Cylinder inventories are carried out on sites combustion processes.
(each is weighed to calculate the mass of SF6
SF6 in our operations is as an insulating in storage).
gas in our high-voltage switch gear 2&3. Our SF6 supplier provides an annual report on Stationary sources of NOx, SOx and
and as a current breaking medium. the mass of SF6 delivered to and retuned from PM include gas compressors in the UK,
During operation, very small volumes of our sites. the burning of natural gas and fuel oil
4. Our inventory of all sub-station equipment
SF6 can leak from equipment. in the US (to generate electricity) and
exists on our CASCADE system.
Equipment that has been newly installed/ submerged combustion vaporizers (SCV)
3.3.3 – Scope retired can be found here and the related SF6 for NGV.
All National Grid’s businesses are data handled appropriately. Note: an industry
included in the reporting of this metric standard value of 5 psi is assumed as the 3.4.3 – Scope
pre-charge amount of SF6 for new equipment
(UK, US and NGV operations), see supplied pre-charge.
NOx, SOx and PM emissions from all
section 3.1.3 for exceptions to this. UK sites are included. For the US, only
The UK Gas Transmission business has In both the UK, NGV and US sites required to report NOx and SOx
no SF6 emissions as SF6 is only kept in calculations, appropriate action emissions to the EPA are included within
hermetically sealed units. is taken to ensure the calculated these figures, representing 59 out of
figures represent SF6 leakage only. National Grid’s total 64 US emissions
UK and NGV emissions are reported For example, if SF6 is added to fill a units. The 5 units that are excluded
in line with the financial year (1 April new piece of equipment, this will appear comprise >3% of total US NOx and
to 31 March) and US emissions are in our SF6 inventories but will not be SOx emissions. All 64 emissions units
reported in line with the calendar year included within calculations for SF6 lost. are included in US PM reporting.
(1 January to 31 December). This reflects
the regulatory reporting requirements
and processes for the US.
14 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
Only one NGV site (LNG, Isle of Grain) is and from mobile sources (e.g. from our Air emissions for the UK, US and NGV
included and only NOx emissions from fleet). Air emissions from these potential businesses are reported on a financial
this site are reported. NOx emissions sources are thought to be immaterial year basis, 1 April – 31 March.
from LNG, Isle of Grain are included and are currently not monitored or
for Phase 1 (emissions from four included in our reporting. 3.4.4 – Calculation methodology
submerged combustion vaporisers Annual NOx, SOx and PM emissions are
(SCVs)) and Phase 2 and 3 (emissions The following gases are included within added together from the UK, US and
from another six and four SCVs our NOx, SOx and PM reporting: NGV (LNG Grain site) to get the Group
respectively). SOx and PM emissions level total (in metric tonnes of each
are not monitored at our LNG Grain site • NOx – NO2, NO gas). See the Table 5 below for further
as are under the threshold required for • SOx – SO2 information on how air emissions are
regulatory reporting. • PM – PM10, PM2.5. Only PM10 is calculated in each of our businesses:
measured and reported in the UK
Our air emissions reporting covers (reported as PM). In the US, PM10,
stationary sources (as defined above). PM2.5 and other particle sizes
Other sources may include air emissions are measured, but reported as a
from back-up generators, small domestic consolidated PM amount.
boilers and process gas boilers on sites
Table 5: Calculation methodology for NOx, Sox and PM reporting across our UK, US and NGV businesses
UK US NGV
NOx Calculated via a Predictive Emissions Some units have Continuous Emissions For LNG Grain Phase 1, an average NOx
Monitoring System (PEMS). Combustion Monitoring (“CEMS”) which automatically log emission rate is calculated via a timed spot
is monitored via automated systems on all actual NOx emissions on an hourly basis. sample to measure the kg NOx per tonnes of
gas turbines 24/7. Data (including exhaust LNG throughput (measured quarterly). Data
On units that do not have CEMS, NOx
temperature, fuel flow, turbine compressor is extrapolated over the quarter to represent
emissions are calculated by: NOx = fuel
delivery temperature and calculated the LNG throughput of the SCV. Quarterly
consumption x NOx emission factor
flame temperature) is fed into our Alert/ data is summed to calculate the annual NOx
CHC system every 10s which applies an Fuel consumption is measured automatically figure.
Environment Agency approved algorithm to by fuel meters, or via fuel storage tank
For Phases 2 and 3, a CEMS is used. NOx
the combustion data to calculate the NOx readings. The NOx emission factor is
is monitored via a probe and data recorded
emissions for each unit. calculated from third-party stack testing.
in our Process History Database (PHD). NOx
The system is calibrated via an extractive is calculated by: CEMS hourly mean for
exhaust gas emission test every 2-6 years as each vaporizer (kg/hr of NOx) X number of
required by our Environment Permits. operational hours.
SOx Calculated by: Amount of gas burnt (m3) X Calculated by: SOx = oil consumption X n/a
SOx emission factor emission factor for SOx emissions from oil or
SOx = gas consumption X emission factor for
Amount of gas burnt (m3) is calculated by
SOx emissions from gas, depending on fuel.
the continuous monitoring of gas flow for
combustion from fuel gas metering units. Oil/gas consumption is measured by fuel
Data is logged automatically on our Alert/ meters. Data is fed into our Data Acquisition
CHC. and Handling System (DAHS), or, manually
via fuel storage tank readings.
Emissions factor is 0.0000078kg of SO2
per kg of fuel burnt. This is calculated The emission factor for natural gas is
using the sulphur content of natural gas as specified by the EPA. The emission factor
specified by the UK Gas Safety Management for oil is calculated from the sulphur content
Regulations (GSMR) and is representative of (analysed prior to delivery) and an EPA
a ‘worst case’ scenario. equation.
15 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
Table 5: Calculation methodology for NOx, Sox and PM reporting across our UK, US and NGV businesses continued
UK US NGV
PM Calculated by: Exhaust gas volume (m3) X Particulate emissions from each stack n/a
PM10 emission factor. Exhaust gas volume are measured on each site periodically in
is calculated by: Amount of gas burnt (m3) + accordance with our permit requirements.
Air required for combustion (m3). The amount Measurements are taken by an independent
of gas burnt is calculated in the same way third party and Test Reports provided to
as for SOx (see above). The air required is National Grid US for our reporting.
calculated using a 30:1 ratio, amount of gas
burnt to air required for combustion; which is
industry best practice.
The emission factor for PM10 is provided
by our equipment manufacturer and is
calculated as 1 ug/m3 stack gas. This was
the limit of detection and therefore is a
conservative approach.
3.5 – GHG emissions and total air trip. This is regardless of invoice date Although our target is measured in
miles from air travel and whether a later return flight has been airmiles, not the associated carbon
3.5.1 – Metric booked. For example, if the return flight emissions, we also convert and report
Total air miles travelled on an annual was outside of the current financial year, our airmiles data in TCO2e. To complete
basis by National Grid employees and it would still be included as part of the the calculation CO2e, the BIES/DEFRA
the associated CO2e emissions. whole trip provide the trip start date was (UK industry standard factors22) and
inside of the current financial year. EPA (US industry standard factors23)
3.5.2 – Definitions carbon conversion factors are applied
Airmiles refer to the distance travelled All emissions and miles travelled on third as per Table 4. The factors change
via aeroplane by National Grid party planes are reported in line with depending on the length of the flights
employees for business activities only. the financial year (1 April to 31 March). taken (domestic, short, medium and long
Emissions and miles from National haul), as well as the type of seat booked
Emissions as outlined in section 3.3. Grid’s own plane are reported in line (economy, business and 1st class).
with the calendar year (1 January to
3.5.3 – Scope 31 December). 3.6 – % Renewable energy
Includes airmiles travelled by the National purchased
Grid workforce across all parts of the Airmiles travelled by contractors are 3.6.1 – Metric
business (see section 3.1.3). In scope, not included. % of electricity supplied from
are airmiles from our company owned renewable tariffs.
plane, as well as from third party airlines. 3.5.4 – Calculation methodology
Airmiles recorded by both our UK and 3.6.2 – Definitions
The airmiles travelled on third party US travel providers are combined (along Renewable tariffs are electricity
planes are captured through our UK and with the miles from our company owned contracts that will supply 100%
US third party travel providers (Capita plane) to represent National Grid’s Group electricity to National Grid from non-
and TLC respectively21). It is National total annual airmiles. fossil fuels.
Grid policy that all employees must book
business trips (long haul and short haul) For our company owned plane, the Electricity supplied is the total in
through our travel providers. airmiles are obtained internally from scope electricity supply contracts,
the aircraft pilot. Flight logs show flight measured in kWh.
Airmiles associated with trips booked time and average air speed from which
through our travel providers are counted mileage is calculated.
in this metric, as of the start date of the
21. The US travel provider for 2019/20 was TLC. For 2020/21 onwards, it will be Omega.
22. BEIS: https://naei.beis.gov.uk/data/emission-factors, DEFRA: https://www.gov.uk/guidance/measuring-and-reporting-environmental-impacts-guidance-for-
businesses
23. 19 EPA: GHG Emission Factors Hub (April 2021) (epa.gov).
16 National Grid Responsible Business Report: Reporting Methodology 2020/213 – Environment continued
3.6.3 – Scope Legacy land impacts are a result of Waste is any substance or object which
Electricity generated from biomass is past contaminative uses of land owned the holder discards or intends or is
considered renewable, but not electricity by National Grid. required to discard.
produced using Carbon Capture and
Storage (CCS). 3.7.3 – Scope 3.8.3 – Scope
The total land area of any site affected Only waste generate and disposed
The metric includes electricity contracts subject to remediation activities will be of from core offices are included in
that National Grid procure directly and reported as the remediated area. this metric.
where competitive supply markets exist.
Electricity contracts supplied by National Land remediation required for small spills Core offices occupied by our UK, US
Grid’s landlords are excluded. during our ongoing activities is excluded and NGV personnel are all included.
from our reporting. Remediation of
% of electricity supplied from renewable legacy land impacts only are included in Data is continuously monitored via
tariffs is reported as at the financial year our reporting. internal waste reporting systems or
end date, 31 March, for UK operations through regular reporting by service
and as at the calendar year end date, Only the UK and US principal businesses providers where National Grid employ
31 December, for US operations. contribute towards this metric. NGV do the services of third parties to manage
not undertake land remediation. office waste disposal.
3.6.4 – Calculation methodology
The total in scope electricity supply UK data is reported in line with the Data from UK based offices are reported
contracts and the total in scope financial year, 1 April to 31 March. in line with the financial year, 1 April to
renewable supply contracts are US data is reported in line with 31 March. US office data is reported in
aggregated by the UK and US according the calendar year, 1 January to line with the calendar year, 1 January to
to their respective year end dates. 31 December. 31 December.
The US and UK totals are then combined
for Group totals. 3.7.4 – Calculation methodology 3.8.4 – Calculation methodology
The total areas of land for the year for the Total waste for the respective US and
The % of electricity supplied from UK and US are aggregated int hectares. UK reporting periods are combined
renewable tariffs is then calculates as: The UK and US totals for the financial to calculate the total office waste for
(Total electricity supplied from renewable and calendar years respectively are then the Group.
tariffs / Total electricity supplied) *100. aggregated to calculate the total areas of
land remediated across the Group. 3.9 – % office waste diverted from
3.7 – Number of hectares of land we landfill
have remediated 3.8 – Total office waste 3.9.1 – Metric
3.7.1 – Metric 3.8.1 – Metric % of office waste that not sent to landfill.
Hectares of land we have remediated Office waste generated and disposed of
to an acceptable risk level or to the from core US and UK offices. 3.9.2 – Definitions
satisfaction of a regulatory agency over Office waste is as defined and reported
the course of the year. 3.8.2 – Definitions separately. See metric 3.8.
Core offices are the primary locations
3.7.2 – Definitions where our office-based employees are 3.9.3 – Scope
Land remediated is the area which has based. This does not include site offices Only waste generate and disposed
been remediated to a level acceptable or locations where National Grid do not of from core offices are included in
to the governing regulatory agency for directly manage waste disposal. this metric.
site closure. This remediation focuses
on the reduction of risk associated with Core offices occupied by our UK, US
contaminants in the environment to and NGV personnel are all included.
acceptable level.
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