Sustainability Report 2018 - Generating Change - Uniper
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Sustainability Report 2018 Generating Change
Table of contents About Uniper Diversified generation portfolio
Foreword
1 We are a global energy company
that generates, trades, and
markets power on a large scale.
Sweden
4.6 GW
Commitment to
Generating Change 2 We also procure, store, transport,
and supply commodities such as
Germany
10.5 GW
3
natural gas, LNG, and coal as well
Sustainability management
as energy-related products. We
have a broad portfolio of assets and Benelux
Climate action and
security of supply 8 contracts that complement each
other perfectly. But what really
1.6 GW Russia
10.8 GW
22
sets us apart is our energy IQ: our
Our people
unique combination of industry-
leading technical and commercial
Environmental
protection 36 expertise. This enables us to
create value for our customers
United Kingdom
6.4 GW
48
Human rights and by designing individually tailored
compliance culture energy solutions for them, solutions
that free them from having to worry
Stakeholder engagement
56 about the complex energy issues
they face. And we do all of this 36.6 GW Total
61
responsibly. We’re a team of doers 1.4
2.4
Key figures 10.3
who achieve their goals with energy, 3.6 Coal
passion, and conscientiousness. Natural gas
About this report
75 Uniper: “Tailoring energy solutions.
Managing complexity.”
Hydro France
Nuclear
Other
2.3 GW Hungary
18.9
0.4 GW
Uniper
Sustainability Report 2018
Foreword
Dear reader, gradually climate-friendlier energy mix. to take steps to improve the environmental,
We’re starting from a good position: we’re social, and governance performance of our
We place great emphasis on providing already one of the largest operators of coal suppliers, particularly in partnership
you, our stakeholders, with accurate, hydroelectric plants in Germany and in with Bettercoal, an international initative
transparent information about how we Sweden, where we also have nuclear dedicated to making the coal supply chain
live up to our responsibilities as company. power plants. Indeed, 65% of our gen- more sustainable.
Our 2018 Sustainability Report continues erating capacity consists of low-carbon
this practice. hydro, nuclear, and gas. In the future, we These are just some of the things we did to
intend to focus even more on gas, the meet our responsibilities in 2018. To ensure
2018 was another eventful year. Global cleanest fossil fuel. In short, our business that we build on this progress in the years
energy markets remained highly dynamic, activities will help propel the transition to ahead, in February 2019 we adopted a Sus-
and there were signficant changes to a lower-carbon future. tainability Strategic Plan. Guided by the UN
the energy policies of several countries Sustainable Development Goals, it consists
where we have our biggest asset positions. This process is already under way. In 2018 of a set of long-term commitments that will Eckhardt Rümmler
Although we had to take far-reaching meas we continued to invest in modernizing guide our activities going forward as well Chief Operating Officer and Chief
Sustainability Officer
ures and revise our targets for a number of and upgrading our power plants and to as quantitative improvement targets for the
projects, we continued to work tirelessly to shut down older, less efficient plants. period 2019–2022. Implementing the plan
lead Uniper to a successful future. These measures were a big part of why and making progress toward our targets
our carbon emissions declined by 19% will help make our business more sustain- With best wishes,
Despite a challenging business environ- relative to 2016, the year we became an able and more resilient. It’s all part of our
ment, we remained a reliable partner independent company. Our safety perform commitment to Generating Change – in our
for our customers, employees, business ance was solid as well. Total recordable business activities, within our company,
partners, shareholders, and the com- injury frequency (TRIF), which measures and along our value chain.
munities we operate in. We supplied our the number of accidents involving our
customers with electricity and gas with employees and our contractors’ employees, I hope you find this report useful and Eckhardt Rümmler
our proven reliability. Going forward, we was lower than ever and better than the informative and that you continue to follow
intend to provide this reliability with a industry average. In addition, we continued us on our journey into the future.
Uniper
Sustainability Report 2018 1
Sustainability at Uniper: Sustainable
our commitment to Development Goals
Generating Change
What makes an energy company sustainable? We believe financial
stability, a shared clear vision, strong relations with stakeholders, and
a commitment to addressing adverse impacts transparently are key.
But so is a willingness to adapt and, more importantly, to be a positive
force for change. We call this commitment Generating Change – in
our business activities, at our company, and along our value chain.
We’re aware that our ability to adapt will be crucial for us to continue creating
value for those who rely on us. That’s why we’ve geared our corporate
strategy toward tomorrow’s energy world. We believe this world will offer us
opportunities to develop new businesses and innovative solutions that will
contribute to sustainable development while adding value to our company.
We generate energy. And we’re committed to Generating Change – positive
change for our company, employees, customers, and enterprise partners as
well as for the communities and countries where we do business.
Uniper supports the 17 UN
Sustainable Development Goals.
Generating Change We prioritized nine SDGs that fit
with our business activities and
sustainability strategy.
Uniper
Sustainability Report 2018 2
Sustainability management
Generating Change: company, the countries where we operate, Change toward sustainability into our daily
work, organization, and corporate culture.
and our value chain more sustainable.
an interview We are confident that Generating Change
with Frank Plümacher will make our company more resilient in a What does Generating Change mean for
rapidly changing world. Uniper employees?
We expect all our employees to think and
Frank Plümacher, Executive Vice
How will Uniper deliver act responsibly and to make Generating
President for Sustainability and HSSE,
on this commitment? Change toward sustainability part of their
talks about how Uniper’s commitment to As part of our commitment, in 2018 we daily work. We’ll continue to reinforce
Generating Change fits with its business designed the Sustainability Strategic Plan. their awareness and to provide them with
portfolio, strategy, and corporate culture. The plan describes how sustainability the tools they need to embrace sustain-
supports our long-term corporate strategy ability. This also applies to their health,
and sets improvement targets for our well-being, and personal and professional
environmental, social, and governance development. That’s why we respect our
performance from 2019 to 2022. It also employees’ rights, provide them with a safe
What does Generating Generating Change also means making explains how these targets contribute and supportive work environment, have no
Change mean for Uniper? sure that we mitigate our negative impacts to the achievement of the nine United tolerance of discrimination, and support
We’ve set our strategic course: while as much as possible. It means making Nations Sustainable Development Goals equal opportunity and diversity. We’ve set
remaining a mainstay of Europe and sustainability a priority and a key facet of that are most relevant to our business improvement targets in these areas as
Russia’s supply security, we intend to build our responsibilities and it is an approach to activities. For example, two of these goals well. For example, we intend to maintain a
on our proven strengths to enter new further embedding sustainability into our are “affordable and clean energy” and low total recordable incident frequency and
markets worldwide and further establish business processes and decision-making. “measures to protect the climate.” To help to increase the percentage of women in
ourselves as a company that designs Not only is it the right thing to do, it is what achieve them, we set a maximum average management positions.
individually tailored energy solutions and our stakeholders expect of us. carbon intensity threshold of 500 grams
manages complexity for customers. As per kilowatt hour for 2018 to 2020 and
we implement our corporate strategy, our What led Uniper to make this commitment? pledged to pursue at least 20 projects that
commitment to Generating Change means Our commitment to Generating Change is promote decarbonization by 2022. Making
being continuously aware that the decisions a concerted effort to align our responsibili- progress toward these and our other
we make and the actions we take have an ties with our corporate strategy. It gives us improvement targets will be a big part of
impact on people and the environment. the best chance to succeed in making our how we will further embed Generating
Uniper
Sustainability Report 2018 3
Uniper Sustainability Strategic Plan SSP impact areas Material topics Relevant SDGs Uniper commitments Uniper targets
• GHG emissions Monitor and optimize the carbon intensity of Uniper’s generation
• • G
roup-wide carbon intensity target of 500 g of CO2
• Innovation portfolio.
Climate action and per kilowatt hour (on average) through 2020.
• Secure, affordable, and • Include decarbonization activities as a focus area for innovation.
security of supply reliable energy supply • C
onduct, by 2022, at least 20 projects whose aims
• Promote lower-carbon fuels for energy generation. include decarbonization.
• M
aintain a 1.75 combined TRIF threshold at group
Protect labor rights and ensure a safe, healthy, and secure work
• level through 2019.
environment for all employees and contractors; promote the • C
ertify 100% of Uniper’s operational assets to
• Health and safety same standards in Uniper’s joint ventures and partnerships. ISO 45001 by 2022.
Our people • Fair and attractive employer
Have zero tolerance of discrimination.
• • Have women account for 25% of Uniper’s high-level
• Diversity and inclusion
Ensure equal opportunity and promote inclusion in the entire
• executives by 2022.
workforce. • Achieve an employee inclusion indicator of
over 95% by 2022.
• Environmental protection
• Air emissions Promote waste reduction, land pollution prevention, and
•
• Energy efficiency environmentally responsible mining. • H
ave no severe environmental incidents.
Environmental • Biodiversity Work with contractors, suppliers, and industrial customers to
• • M
aintain certification of 100% of Uniper’s
protection • Waste minimization adopt a life-cycle approach in order to protect the environment, operational assets to ISO 14001.
• Water optimization use resources efficiently, and market Uniper’s by-products.
• Fuels and by-products
• A
ssess 100% of new counterparties according
• Human rights along the value Have zero tolerance of forced labor, child labor, modern slavery,
•
to Uniper’s social screening system (ESG due
Human rights and chain and human trafficking.
diligence) by 2022.
compliance culture • Governance and compliance Continue to strengthen Uniper’s compliance culture and protect
•
• T
rain 100% of new hires on compliance and
• Data protection the business from corruption risks.
Uniper’s Code of Conduct by 2022.
Actively engage with stakeholders to ensure transparency and
•
ongoing dialogue regarding Uniper’s activities.
• A
t the corporate level, conduct at least three trust-
Stakeholder • Stakeholder engagement
Foster the development of effective, accountable, and
•
building dialogues with civil society organizations
engagement transparent institutions at all levels.
each year up to 2022.
Minimize the impact on communities affected by Uniper’s
•
operations.
Uniper
Sustainability Report 2018 4
Material topics for Materiality matrix
Generating Change
[GRI 102-47] As our commitment outlines, The assessment also analyzed the busi-
our material topics are mapped against the ness relevance of our company-specific The different bubble sizes indicate Secure, reliable
the risk potential. You find more and affordable
SDGs to define our strategic sustainability topics, the energy industry’s influence information on how we manage the energy supply
commitments. As part of our 2018 materi- on them, and whether they correlate ESG risks in our Combined Separate GHG emissions
ality assessment, we prioritized nine SDGs with one or more of the UN Sustainable Non-Financial Report.
Health and
that are key to our business activities, their Development Goals. In the final step of safety
impact, and our strategy for the future. the assessment, experts from relevant
very high
Fair and
departments discussed, validated, and
Uniper's impact on the topics
attractive
In our 2018 materiality assessment, we approved the results. employer
Diversity and
reviewed and, where necessary, adjusted inclusion
our company-specific sustainability topics. The following materiality matrix provides
Innovation
We adopted a two-dimensional approach an overview of the assessment’s results.
high
that considered the economic, environ- The horizontal axis indicates each topics’ Fuels and
mental, and social impact of our business impact on our company from the perspec- by-products
Governance and
activities on these topics as well as the tive of outside stakeholders; conversely, Stakeholder compliance
engagement
topics’ impacts on our company. We also the vertical axis represents our impact
medium
considered the expectations of important on these topics. The various sections of Data protection Human rights along
stakeholders, such as policymakers, com- this sustainability report describe our Water optimization the value chain
petitors, non-governmental organizations management approach for these topics,
(NGOs), and the financial market; we ana- the progress we achieved in the reporting Energy efficiency
Biodiversity
lyzed whether from their perspective our period, and, where relevant, exceptions to Waste Air emissions
impacts could have a significant influence our definition of materiality. minimization
low
on our company and third parties and the
Environmental
importance of the impacts for understand- protection
ing our current and future development.
low medium high very high
Topics’ impact on Uniper
Uniper
Sustainability Report 2018 5
How we manage
our commitment
[GRI 102-11/18/19/20] The Uniper Manage- internal environmental and social risks
ment Board bears overall responsibility for that could arise from our operations,
adopting and implementing sustainability the likelihood of these risks, and their
measures that encompass the entire potential severity. ESG risk management
company. One of its members, Eckhardt is part of our overall enterprise risk
Rümmler, is appointed as Chief Sustainabil- management processes.
ity Officer (CSO) and periodically reports
to the Supervisory Board on our strategic Our employees’ involvement is essential for
sustainability activities. As our highest achieving a robust sustainability culture.
governance board, the Supervisory Board We strive to encourage their involvement
monitors our company’s fulfillment of its by continually reinforcing their awareness
sustainability obligations. of the importance of sustainability for our
company, for the countries and communi-
The Management Board has assigned to ties where we operate, and for themselves
the Health, Safety, Security, and Environ- as individuals.
ment (HSSE) & Sustainability function
the responsibility for defining our com-
pany-wide targets and key performance
indicators and for identifying ESG risks
and emerging issues that could affect our
company.
We have in place measures to control,
minimize, and mitigate our ESG risks.
Our ESG risk management encompasses
a governance structure, the assignment
of duties and responsibilities, and
applicable policies and procedures. It
Our two office buildings,
also includes assessing the external and Float and Capricorn, in
Düsseldorf.
Uniper
Sustainability Report 2018 6
Governance
and monitoring
Uniper’s performance in ratings and rakings
Policies and commitments We comply with anti-discrimination laws
[GRI 103-2, 102-16/20] The HSSE & Sus- and regulations in the countries where Our score
tainability Policy Statement, signed by the we operate. To foster diversity and inclu-
CDP C
Management Board and the Uniper Group sion, in 2018 we introduced a Diversity
Works Council, articulates our commitment Improvement Plan. London-based CDP is a not-for-profit organization that runs a
to acting responsibly by supporting the global disclosure system for investors, companies, cities, states,
principles of the United Nations Global We are committed to the core conventions and regions to manage their environmental impacts. Its scores for
climate and environmental disclosures range from D- to A. The
Compact and other relevant internationally of the International Labour Organisation.
average score in the European utilities sector is C.
recognized standards for human rights, We also comply fully with the UK Modern
environmental protection, and good Slavery Act in the United Kingdom and Energy Intelligence’s Top 100 Green Utilities 72nd
governance along our supply chain. similar laws in other countries. This ranking of the world’s top green power generators from both
industrialized and emerging markets is based on the companies’
Uniper’s Code of Conduct addresses a wide Ratings and rankings renewable energy portfolios and greenhouse gas emissions.
range of issues, including compliance, We continually monitor our sustain-
anti-corruption, and respect for human ability performance. But it’s always MSCI ESG Ratings Laggard (B)
rights. The code, which defines our basic useful to find out how other experts Based in New York, MSCI is an independent provider of insights and
principles of conduct, is founded on a think we’re doing and to learn from analytics that help investors identify ESG risks and opportunities. Its
commitment to one another, the business, their feedback. Our sustainability seven ESG ratings are grouped into three categories: laggard (CCC,
and the communities in which we operate. performance is rated and ranked by a B), average (BB, BBB, A), and leader (AA, AAA).
It’s binding for all our employees. wide range of independent organiza- ISS-oekom C
tions around the world. We realize that
ISS-oekom of Munich rates companies’ ESG performance on a scale
We strive to work, whenever possible, with these assessments generally rate our from D- to A+. The prime threshold for the energy industry is B-. Being
third parties that have comparable prin performance as average. This provides at or above the prime threshold indicates that a company is meeting or
ciples. We therefore require our suppliers further impetus for us to strive to exceeding the ESG performance standards for its industry.
to sign our Supplier Code of Conduct. improve our performance in the future.
Sustainalytics ESG Risk Ratings 63 out of 100
Amsterdam-based Sustainalytics rates the industry-specific ESG points
risks of 9,000 companies worldwide. High score = high performance
Uniper
Sustainability Report 2018 7
Climate action and
security of supply Direct CO2 emissions from fuel
combustion in million metric tons
73.6
63.3 59.5
Climate change is one of the world’s biggest challenges and one of our company’s
most material long-term topics. This applies in particular to the climate impact of 2016 2017 2018
the carbon emissions from our coal-fired power stations. Europe’s energy transition Reduced our direct carbon emissions from
is under way, and more and more of its energy is renewable. But because the combustion of fossil fuels for power and
amount of renewable energy available varies with the weather and the time of day, heat generation to 59.5 million metric tons.
this ongoing growth presents the energy system with significant challenges. For
example, operationally flexible conventional plants are still crucial for balancing
out the fluctuations in renewables output and thus ensuring an uninterrupted
power supply and grid stability. In fact, two thirds of our generating capacity
can do precisely this: our lower-emission gas-fired plants and low-emission
hydro and nuclear plants respond quickly to fluctuations and therefore play a
499
key role in ensuring supply security while also promoting climate protection.
Reduced our total carbon intensity
to 499 grams of CO2 per kWh.
Uniper
Sustainability Report 2018 Climate action and security of supply 8›Commitments ›Targets
Monitor and optimize the Promote lower carbon fuels Group-wide carbon intensity of
carbon intensity of Uniper’s for power generation. 500g of CO2 per kilowatt hour
generation portfolio. (on average) through 2020.1
Include decarbonization activities Conduct, by 2022, at least
as a focus area for innovation. 20 projects whose aims
include decarbonization.
›Contribution to the UN SDGs
1
We calculate carbon intensity on average from 2018 to 2020
using the financial control approach. This means that our carbon
intensity is the ratio between the direct CO2 emissions from our
fully consolidated, stationary fossil-fueled power plants and
power-and-heat plants and these plants’ power and heat output. It
does not include plants that produce heat/steam only.
Uniper
Sustainability Report 2018 Climate action and security of supply 9Greenhouse
gas emissions
[GRI 103-1/2] Climate change is a major [GRI 103-2] Since the EU Emissions Trading Uniper’s direct carbon emissions in Europe1
challenge and urgent, concerted action Scheme began in 2005, our generation
Million metric tons of CO2
worldwide will be necessary to limit business in Europe has reduced its annual
global warming to 1.5 degrees centi- carbon emissions by just over 60 million 100
grade. It’s also a big challenge for an metric tons, which is around 64%. In other 95.34
energy company like us. Our industry, words, our emissions have declined further 80
which is among the biggest carbon than the current EU climate targets to cut
emitters, will be increasingly affected emissions in the EU by at least 40% below 60
in the years ahead by social, regulatory, 1990 levels by 2030. We believe that the
and economic developments related to EU ETS remains the most cost-effective 40
greenhouse gas (GHG) emissions. mechanism for helping Europe meet its
34.16
emission-reduction targets. 20
[GRI 103-2/3] We support the implementa-
tion of the Paris Agreement and are doing We’ve achieved this reduction in two ways: 0
our part by helping gradually decarbonize by shutting down older, uneconomical 2005 2018
the energy system while simultaneously power plants and by building gas-fired
ensuring a reliable energy supply. plants that supply homes and businesses 1
Carbon emissions of our generation business in
with lower-emission electricity, heat, and Europe calculated using the operational control
19%
steam. approach. This means that we counted 100% of the
emissions from all generation assets over which we
have operational control, even if our ownership stake
is less than 100%. These figures do not include the
emissions of Unipro, our subsidiary in Russia.
reduction of direct carbon emissions
from the combustion of fossil fuels
for power from 2016 to 2018
Uniper
Sustainability Report 2018 Climate action and security of supply 10Direct CO2 emissions from fuel combustion by country1 [GRI 305-1]
Million metric tons 2018 2017 2016
France 2.9 5.1 4.3
Germany 17.2 16.9 19.6
Hungary 0.8 0.8 0.6
Netherlands 5.5 7.9 10.9
Russia 25.3 26.4 29.4
SwedenIndirect CO2 emissions How we’re managing
[GRI 305-2/3] our GHG emissions
0.27
Greenhouse Gas Protocol Scope 2 and 3 [GRI 305-4] We’re committed to monitoring Supporting the energy transition
Our Scope 2 indirect emissions totaled and optimizing the carbon intensity of our Two factors – the phaseout of coal-fired
0.27 million metric tons of CO2 (2017: 0.34 generation portfolio. We set a Group-wide power generation in some countries and
million metric tons of CO2) and 0.34 million annual average carbon intensity target of greater use of climate-friendly natural
metric tons CO2 (2017: 0.41 million metric 500 grams of CO2 per kWh for the period gas – could increase Europe’s emission-
tons of CO2) using the location-based million metric tons indirect 2018 to 2020. Our carbon intensity was 499 reduction potential.
method and market-based method, CO2 emissions using the grams of CO2 per kWh in 2018, a reduction
respectively. These emissions therefore location-based method1 from 506 grams of CO2 per kWh in 2017.3 Several countries in which we operate
declined year on year using both methods.1 This is consistent with our target. Through have begun to take steps toward ending
0.34
year-end 2020, we intend to further refine coal-fired power generation. In July 2017,
Our upstream Scope 3 indirect emissions our carbon-monitoring processes and to the French government stated its intention
related to extraction and transportation of invest in upgrades and innovations that to shut down coal-fired power plants by
consumed fuels totaled 10.3 million metric will reduce our assets’ carbon intensity. In 2022. In January 2018, the UK government
tons of CO2.2 addition, we’re analyzing climate scenarios, announced a phaseout date of October
policy and regulatory developments, and 1, 2025. In May 2018, the Netherlands’
million metric tons indirect the lifetime scenarios of our assets in order Ministry of Economics published a draft
1
These figures include emissions from consolidated
and nonconsolidated generation assets over
CO2 emissions using the to define a carbon intensity target for the law under which plants that are less than
which Uniper has operational control. market-based method1 period beyond 2020. 44% fuel-efficient would be closed by 2025,
2
Raw estimate of upstream Scope 3 emissions whereas those above 44% could remain
associated with the extraction, refining, and
transportation of the raw fuel sources to an in operation until year-end 2029. Finally,
organization’s site (or asset) prior to combustion using in January 2019 the Coal Commission
well-to-tank (WTT, DEFRA) fuel-conversion factors. appointed by the German federal govern-
3
We calculate carbon intensity on average from
2018 to 2020 using the financial control approach. ment recommended gradually phasing
This means that our carbon intensity is the ratio
Uniper CO2 intensity 2016 -2018 out coal by 2038. Although none of these
between the direct CO2 emissions from our fully (grams of CO2 per kWh) countries has yet enacted a phaseout law,
consolidated, stationary fossil-fueled power plants
and power-and-heat plants and these plants’ power 506 the trend is clear.
and heat output. It does not include plants that
502
produce heat/steam only. We initially reported We support a coal phaseout – but only if
that our carbon intensity was 503 g/kWh in 2017.
499
We subsequently corrected this to 506 g/kWh. rising carbon prices alone don’t enable the
2016 2017 2018 EU to achieve a rate of emissions reduction
Uniper
Sustainability Report 2018 Climate action and security of supply 12Students provide useful
insights into climate-
related scenario analysis
to reach its climate targets. Moreover, we Moreover, the supply of gas will remain In 2018, five students pursuing Master’s
strongly believe that the modalities of any abundant well into the future. degrees in Green Management, Energy,
phaseout must be fair to the companies, and Corporate Social Responsibility at
people, and regions they affect. In addition, Climate-related disclosures
Bocconi University in Milan, Italy, took
decisions about the future of coal-fired We carefully monitor developments at the
part in a project in which they analyzed
power generation must consider the Task Force on Climate-related Financial
reliability of the energy and heat supply, Disclosures (TCFD), which has issued a climate-related scenarios and how
especially because the feed-in of inter- consistent framework for companies to they can be used in practice to evaluate
mittent renewable energy continues to make voluntary climate-related financial transition risks for energy companies
increase and the expansion of grid capacity risk disclosures. We’ll continue to evaluate like us. These include risks arising from
is not keeping pace with this growth. whether the framework can add value the transition to a low-carbon economy
to such disclosures. An organization which could, for example, lead to the
We expect Datteln 4, our technologically called CDP, formerly known as the need to reassess the future viability of
advanced 1.1 GW coal-fired power plant in Carbon Disclosure Project, runs a global some assets. The students presented
west-central Germany, to enter service in system for companies to report their
their findings to Eckhardt Rümmler and
the summer of 2020. We will not invest in environmental data, climate risks, and
any new coal-fired power plants of our own approach to carbon management. CDP
several of our other senior managers. It
after the commissioning of Datteln 4. then assigns companies’ disclosures a was a win-win situation: the students
score ranging from A (best) to F. In 2018 had the opportunity to apply their
No matter what decisions are made about we responded to CDP’s sector-specific analytical skills and creativity to an
coal, gas – which has the lowest carbon climate-change questionnaire for the first important sustainability issue, and we
emissions of any fossil energy source – time. The questionnaire, which for the benefited from interesting insights
is the best fuel to support the energy first time included questions drawn from that will assist us in our ongoing
transition. Indeed, ambitious emissions TCFD recommendations, was about our evaluation of climate-related risks.
reduction can only be achieved if more climate performance in the 2017 calendar
gas is used in power generation, heating, year. CDP subsequently gave us a C, the
transport, and industry. The importance of average score for the energy sector. The
gas-fired power plants, which can swiftly questionnaire enabled us to identify poten-
balance out the volatility of renewables, tial improvements which we will explore
will increase significantly going forward. further in 2019.
Uniper
Sustainability Report 2018 Climate action and security of supply 13Maximizing efficiency and climate protection CO2 Value Europe [G4-DMA]
A key aspect of our growth strategy is to Cogeneration – producing both electricity Together with around 40 other com-
supply by-products of power generation and heat – has increased Grain 6’s thermal panies and institutions, at the end of
to industrial enterprises located near our efficiency to more than 81%. In the fourth 2017 we founded CO2 Value Europe, an
power plants. This has two advantages. quarter of 2018 alone cogeneration enab- initiative to promote the development
First, it enables us to earn additional, sta- led Grain 6 to displace 25,000 metric tons of a scalable carbon capture and usage
ble revenue that isn’t exposed to commo- of CO2 because no additional fossil fuel (CCU) industry. We currently hold the
dity prices. Second, it improves our plants’ had to be consumed to generate the heat. presidency of the initiative. The aim is
thermal efficiency, because they derive to use carbon as a valuable resource
more useful energy from each unit of fuel. Generating change is about demonstrating for alternative production processes,
that a secure energy supply and more like manufacturing chemicals and fuels.
One of these by-products is waste heat, climate protection can go hand-in-hand. Although a CCU industry doesn’t yet exist,
which is needed for a wide range of indus- Grain 6 is just one of many examples it would have applications for a wide
trial processes. In 2018, the engineers at of how we’re making it a reality. variety of other sectors and is potentially
Grain 6, one of our combined-cycle gas feasible along the entire value chain.
turbines in the United Kingdom, improved CCU’s potential for reducing net carbon
the design of its heat pipe. This enabled emissions is substantial. In its first year
it to again begin supplying waste heat of existence, CO2 Value Europe achieved
to its neighbor, Grain LNG terminal, significant growth. It formed a number of
which uses the heat to regasify LNG. subsidiaries and is considering forming
others, including on other continents.
Alongside our engagement for CO2 Value
Europe, we sit on the Advisory Board of
the Global CO2 Initiative and are a founding
member of the German Energy Agency’s
(dena) Global Alliance Power Fuels.
Uniper
Sustainability Report 2018 Climate action and security of supply 14Innovations for a How we manage
innovation
low-carbon future
[GRI 103-1] Innovation is crucial to our reflects the three pivotal trends that are [GRI 103-2/3][G4-DMA] Innovation plays After careful review, we selected several
ability to generate change. It makes our transforming the energy industry: decar- a key role in our support for the transition main innovation areas, of which three are
existing businesses more efficient, more bonization, decentralization, and digi- to a low-carbon future. Our innovation related to decarbonization: new flexibility,
competitive, and more sustainable. Also, talization. We’re actively helping shape team has two main objectives: to develop carbon recycling, and hydrogen. All three
it enables us to establish new businesses these trends and, as described below, are scalable business models that could be offer potential synergies with our existing
that support the transition to a low- developing innovative businesses that fit viable over the medium term and to serve businesses, help prepare our company
carbon future. Our innovation strategy the energy world the trends are creating. as our company’s innovation radar by for a low-carbon future and support our
tracking technologies and market develop- commitment to promote lower-carbon
ments that potentially pose threats or offer fuels. We’ve also committed to conducting
opportunities. at least 20 projects by 2022 whose aims
includes decarbonization.
We collate knowledge on emerging
technologies by gathering information from
publications, conferences, our own experts,
and other sources. We then use this infor-
mation to identify potential new business
opportunities as well as regulatory or
10
market risks to our existing businesses and
devise effective responses.
Wall with results from
internal innovation decarbonization projects
workshop. already underway
Uniper
Sustainability Report 2018 Climate action and security of supply 15Our main innovation areas
related to decarbonization
[GRI 103-2][G4-DMA]
New flexibility Carbon recycling Hydrogen
Flexibility supports the transition to a We see CO2 not as a waste product but as We believe low-carbon hydrogen and
low-carbon energy world in two ways. a valuable resource that can be captured hydrogen-based fuels can play a key
First, it balances out the fluctuations in and used in the production of a variety role in decarbonization and offer new
renewables output; this capability will help of products, such as building materials, business opportunities, particularly in
support the integration of large amounts chemicals, and fuels. We have more than mobility but also in heating, industry,
of renewables capacity. Second, the a decade of experience in developing and power generation, and other sectors.
flexibility provided by energy storage or testing equipment to capture CO2 from our When electrolysis equipment is powered
conversion is able to capture more of this power plants’ exhaust stream. Going for- by renewable energy, it stores this energy
output. We’re pioneering the development ward, we intend to build on this experience in a chemical molecule: hydrogen. This
of innovative technologies for new forms and continue to expand our knowledge process is viable on an industrial scale
of flexibility. For example, we’re among about CO2 conversion; to name one example and makes it possible to store renewable
the first companies in the world to use a among many, we’re in the process of identi- energy for a long time. Hydrogen can be
process known as power-to-gas to convert fying industrial enterprises near our power used as fuel cells to power vehicles as well
surplus renewable energy into hydrogen plants that need CO2 for their production as buildings and other equipment. Fuel
and methane and inject them into the gas processes. Carbon recycling has the cells only emit water, not CO2. Hydrogen
pipeline system. We also helped develop potential to make a significant contribution can also be combined with CO2 to produce
M5BAT, a utility-scale battery for on-site to decarbonization: by permanently binding chemicals and synthetic fuels, such as
storage of surplus low-carbon energy Uniper employees at our power-to-gas CO2 in building materials and other prod- synthetic diesel, kerosene, and methane.
unit in Falkenhagen, Germany.
production. Moreover, many of our existing ucts or by replacing chemicals and fuels Alongside continuing to refine our existing
power plants – particularly gas, hydro, and power-to-gas facilities, utility-scale bat- that otherwise would have been produced power-to-gas hydrogen production plants
nuclear – can adjust their output within teries, charging infrastructure for electric using fossil fuels, thereby avoiding these (see p. 17), we’ll explore new applications
minutes and are thus excellent sources of vehicles, and demand response (industrial emissions. We’re actively engaged in for clean-burning hydrogen.
flexibility. Consequently, our objective is to processes that can adjust their consump- creating a global carbon recycling industry.
assemble a diverse portfolio of flexibility tion in response to the amount of electricity For more information, see the information
options encompassing our power plants, available in the grid). on CO2 Value Europe on page 14.
Uniper
Sustainability Report 2018 Climate action and security of supply 16Making transport more Power-to-gas: harnessing
sustainable with LNG more clean energy [G4-DMA]
With the amount of freight hauled by road On particularly windy, sunny days, wind system. Our work at Falkenhagen and
continuing to increase, liquefied natural and solar farms sometimes have to curtail other locations proves that power-to-gas
gas (LNG) offers a quick and efficient and even suspend production because technology responds to rapid fluctuations
way to make heavy vehicle traffic more the grid doesn’t have enough capacity to in renewables output, is market-ready,
sustainable: trucks that run on LNG emit transmit their output. That’s renewable and promises to become even more
less CO2, nitrogen oxides, and particulate energy gone to waste. Power-to-gas can efficient and affordable going forward.
matter than diesel-powered trucks and help: instead of taking wind turbines
are also much quieter. Moreover, LNG or solar arrays offline to prevent grid
contains 600 times more energy per unit congestion, their output can be used to
of volume than normal natural gas. In run on-site electrolysis equipment that
view of these advantages, we’re drawing produces hydrogen and methane, which
on our expertise in LNG supply to esta- is then injected into the gas pipeline
blish a business in LNG truck fueling. system. In short, power-to-gas can
enable us to harness more clean energy.
In 2018 our subsidiary LIQVIS opened
its first permanent public LNG filling One of our power-to-gas units is at a
station in Berlin, Germany. This marked wind farm near Falkenhagen in eastern
an important step in our plan to esta- Germany. Through year end 2018, it had
blish a network of LNG filling stations produced a total of 8 GWh of hydrogen. In
across Europe. The German Federal 2018, we added equipment that enables
Ministry for Transport and Digital Infra- this unit to use CO2 from a nearby bio-
structure has taken steps to accelerate ethanol plant to transform the hydrogen
the development of this network by into methane. We believe that green
subsidizing the purchase of LNG trucks methane has greater promise because
and by exempting LNG trucks from it has the same chemical properties
freeway tolls until year-end 2020. as natural gas and can therefore be Our power-to-gas activities
stored in unlimited quantities in the gas contribute to SDG 7, 9 and 13.
Uniper
Sustainability Report 2018 Climate action and security of supply 17Secure, affordable, and How we
manage our
reliable energy supply generation fleet
[GRI 103-1] A secure and reliable energy technical expertise and energy services need for big plants. Third, as mentioned [GRI 103-2/3][G4-EU10] We own and
supply is essential for societies to help provide Europe and Russia with a above, several countries where we operate about 37 GW of conventional
function and for their economies to be secure, affordable, and reliable supply operate have taken steps to stop coal-fired generating capacity (gas, coal, hydro,
competitive. That’s why it’s the center- of power, gas, and steam. generation in the not-so-distant future. nuclear, fuel oil, and biomass) in Europe
piece of our strategy. Consequently, our On the other hand, the gradual exit of coal and Russia. This fleet is highly efficient,
core business is our main contribution But we also face challenges. First, the and Germany’s upcoming phaseout of flexible, and diversified. More than half
to society. Our generating capacity, our growth of renewables is reducing the nuclear capacity will tighten the supply (65%) of our capacity is low-emission
midstream gas business (wholesale operating hours of conventional power side in the mid-2020s, which is likely to hydro, nuclear, and gas and thus fully sup-
supply, underground storage, and stakes plants. Second, distributed generation create better market environment for our ports the energy transition. Our largest
in transport pipelines) as well as our continues to proliferate, lessening the generation portfolio. asset positions are in Germany, Russia,
the United Kingdom, Sweden, the Nether-
lands, and France. In addition to producing
electricity and providing stability to the
grid, many of our plants supply heat,
process steam, compressed air, and other
products to nearby industrial enterprises
and utilize some of these enterprises’
waste streams.
Our overall strategy is to continue main-
taining and optimizing all our assets, to
grow our portfolio in areas where the
market or regulatory environment is
especially supportive, and to generate
more income from by-products like steam
and compressed air.
Etzel gas-storage facility
in Germany at night.
Uniper
Sustainability Report 2018 Climate action and security of supply 18We periodically upgrade the technology Fully consolidated generating capacity by technology and country 2018
and processes at our assets so that we
continue to ensure high rates of availability
MW at year-end 2018 Gas Coal Hydro Nuclear Other Total (by
and efficiency and to prevent unplanned
country)
downtime. Some of these upgrades also
improve our assets’ climate performance. Russia1 8,479 2,283 - - - 10,762
Germany 3,333 3,802 1,991 - 1,418 10,544
Our generation fleet’s reliability
Our key performance indicator for the United Kingdom 4,375 2,000 - - 34 6,409
reliability of our generation business is
average asset availability. Our power Sweden 947 - 1,579 1,400 662 4,588
generation fleets in Europe and Russia France 828 1,190 - - 244 2,262
had an average asset availability of 79.1%
in 2018, lower than in 2017. We investigate Netherlands 526 1,070 - - - 1,596
each outage carefully to determine the Hungary 428 - - - - 428
causes so that we can prevent similar
problems at other plants and keep our Total (by technology) 18,916 10,345 3,570 1,400 2,358 36,589
fleet’s availability at a high level.
Includes an asset in the Czech Republic.
1
65% of our generating capacity is
low carbon (hydro, gas and
nuclear)
Uniper
Sustainability Report 2018 Climate action and security of supply 19How each of our fuels
supports supply security
[GRI 103-2/3]
Gas CCGTs in the United Kingdom to black start; Wilhelmshaven, Germany, to be operational capacity in Europe. Our 109 hydro plants
Natural gas, which will help Europe transition that is, power up independently of the grid as early as 2022. This unit could send in Germany meet the electricity needs
toward a more diversified and lower-carbon after a widespread outage. This enables out 10 bcm of gas per year, thus further of 1.6 million households. Our 76 plants
energy mix, is a big part of our business. them to provide electricity needed to restart diversifying Europe’s gas supply. in Sweden make us the country’s third
We operate a large fleet of gas-fired power other power stations and keep outages as largest hydropower producer, and support
plants, procure billions of cubic meters of short as possible. In addition, we have stakes in gas trans- Sweden’s energy transition, which aims
natural gas and LNG each year, have stakes mission pipelines (such as OPAL in eastern at Sweden’s energy supply being 100%
in several gas transmission pipelines, and We procure natural gas from a variety of Germany) and finance projects to build renewable by 2040. Going forward, we
operate underground gas storage facilities. producers in several countries, mainly new ones. These assets provide important intend to maintain and optimize these vital
Russia, the Netherlands, and Germany. pathways for the import and transport of assets so that they can continue to provide
The two advantages of gas-fired power To further diversify our gas supply in the gas and therefore play key roles in ensur- a reliable source of zero-carbon power.
plants are that they have relatively low years ahead we will also procure up to ing supply security.
carbon emissions and also can start up and 1.5 billion cubic meters (bcm) of gas per Nuclear
adjust their output quickly in response to year from Azerbaijan. Finally, we’re one of Europe’s leading gas We’re the majority owner and operator of
changes in renewables output, helping to storage companies. We own and operate a Oskarshamn 3 nuclear power plant (1.4 GW)
ensure an uninterrupted electricity supply. In 2018 we procured 390 TWh of gas under total of around 8 bcm of underground gas in Sweden and have minority stakes in
In January 2019, transmission system long-term contracts. We also buy and storage capacity in Germany, Austria, and two other nuclear plants, Ringhals (1.2 GW
operator TenneT awarded us a contract that sell gas on a forward and a spot basis at the United Kingdom. We have 6.5 bcm in attributable to us) and Forsmark (0.3 GW
will add to our portfolio of such plants: it Europe’s trading venues. We traded a total Germany alone, which makes us its largest attributable to us). Our focus is on continu-
selected us to build a 300 MW combined- of 2019 TWh of gas in 2018. Along with operator. Our storage business helps keep ally enhancing operational excellence and
cycle gas turbine (CCGT) at Irsching power pipeline gas, we purchase LNG. We also the gas supply secure even during demand meeting new safety standards. After an
station near Ingolstadt. From 2022 onward, have stakes and long-term capacity book- spikes in cold winter months. extensive modernization and lifetime-ex-
the CCGT will supply power at times of ings several LNG in Europe. In addition, in tension program, all three plants are in the
system stress, thereby making the grid in December 2018 Uniper and Mitsui O.S.K. Hydro prime of their operating lives and able to be
southeast Germany even more reliable. In Lines concluded an agreement to build a Hydro makes up about 10% of our total low-carbon mainstays of Sweden’s supply
addition, in 2018 we equipped two of our floating storage and regasification unit in generating capacity and 14% of our security for the decades ahead.
Uniper
Sustainability Report 2018 Climate action and security of supply 20Increasing availability,
reducing costs
We strive continually to maximize the Power production by primary energy source
reliability and availability of our power
plants. One way we do this is by main- TWh 2018 2017 2016
taining and refurbishing the components
of our combined-cycle gas turbines Gas1 60.5 61.9 73
(CCGTs) so that they last longer than the Coal 31.8 35.8 40.9
manufacturers originally intended. This
Nuclear 10.7 11.1 13.6
enables us to lengthen the intervals
between major turbine outages, reduce Hydro 10.3 11.8 11
unavailability, and save a lot of money. Renewables2 0.2 0.2 0.2
It also further deepens our knowledge
of CCGTs, knowledge that we can share Biomass 0.3 0 -
within our company and market to Total3 113.9 120.8 138.7
other operators worldwide through
our engineering services business. 1
Figures include production from oil.
2
Figures include production from non-material wind and solar assets (aggregated installed capacity 95 MW).
3
Possible rounding differences between individual figures and totals.
The program, which we started about four
years ago, is called Parts Life Extension
Coal Despite this challenging environment,
(PLE). We’ve completed PLE projects Our coal portfolio will shrink due to policy we’ll continue to operate our coal assets
at several power stations, typically and regulatory changes in Europe. Deci- efficiently during their remaining life-
deferring major outages by around one sions about the future of coal-fired power time and, if economically viable, seize
year. Currently, PLE projects are under generation must consider the reliability opportunities to improve their commercial
way at seven of our power stations across of the energy and heat supply, especially position. Whenever possible, we’ll work
Europe, involving a total of 16 CCGTs. because the feed-in of intermittent renew- continually to increase these assets’
Going forward, we plan to take PLE to able energy continues to increase and the efficiency and therefore reduce their
seven more of our power stations. expansion of grid capacity is not keeping environmental footprint.
pace with this growth. Phasing out coal
shouldn’t result in people’s lights going out.
Uniper
Sustainability Report 2018 21Our people
Our top priority is to work safely,
73
nationalities
working at Uniper
look after our people’s health,
and protect them from harm. Our
commitment to health and safety
also extends to the employees
of our business partners and to
the people who live near and visit
our facilities. We aim to provide a
supportive work environment in
1.47
which our people feel confident
sharing their ideas and trying
new approaches. Their creativity
is crucial to our success. We
encourage our employees to hone
combined total recordable
and extend their skills and learn
incident frequency (TRIF)
from each other. Furthermore,
of 1.47 (2017: 1.53)
we strive to prevent any form of
discrimination and to promote
gender equality and inclusion.
Uniper
Sustainability Report 2018 Our people 22›Commitments ›Targets
Protect labor rights and ensure a safe, healthy, Maintain a 1.75 combined Certify 100% of Uniper’s
and secure work environment for all employees TRIF threshold at the operational assets to
and contractors; promote the same standards Group level through 2019.1 ISO 45001 by 2022.
in Uniper’s joint ventures and partnerships.
Have zero tolerance Ensure equal opportunity Have women account for Achieve an employee
of discrimination. and promote inclusion 25% of Uniper’s high-level inclusion indicator of
in the entire workforce. executives by 2022. over 95% by 2022.2
›Contribution to the UN SDGs
1
Total recordable incident frequency (TRIF) measures
the number of incidents per million hours of work.
2
Employee inclusion indicator: annual employee
opinion survey demonstrates that 95% of employees
feel included.
Uniper
Sustainability Report 2018 Our people 23Health
and safety
[GRI 103-1] Maintaining high health [GRI 103-2/3, 403-1/2/8] We view health
and safety standards is a core value and safety as a key leadership task that
for us because we care about our requires a culture of continual improve-
people. Safety is also important for the ment. We have in place company-wide
operation of our facilities and enables programs and policies that are adapted
us to avoid the additional cost of work to differences in the safety practices of
stoppages and lost time that result from the countries where we operate. They are
accidents. Our commitment to health and designed to provide a safe and healthy
safety also extends to people who live workplace (both for our employees and
near our facilities and to visitors. contractors), to enable us to learn from
accidents, and to achieve the health and
safety targets and improvement measures
we define annually.
Safety is particularly important for high-
risk activities, such as our plant decommis-
sioning and dismantling projects under way
in Germany, Sweden, the Netherlands and
the United Kingdom. Onboarding agree-
100%
ments with contractors include clauses
obliging them to comply with our safety
standards.
OHSAS 18001 coverage for
operative sites
Uniper
Sustainability Report 2018 24Comprehensive HSSE management and daily activities. It issues guidelines and In 2018 we introduced a comprehensive, soft-
The HSSE & Sustainability function at Group policies, conducts workshops, and coordi- ware-based incident management system
Management supports our organization nates the sharing of best practices. Based that enables us to analyze and report incident
and employees in integrating health and on our company-wide HSSE & Improvement data more effectively. We also conducted a
safety standards into their strategic and Plan, our operating entities design their own thorough review of our existing processes
operational planning, business decisions, annual improvement plans, which include for reporting, documenting, and analyzing
health and safety targets and improvement incidents. We’re currently implementing
measures. Progress toward the targets is improvement measures. This applies in
monitored periodically. particular to communications processes.
These processes ensure that information
The health and safety management about, and lessons learned from, incidents
systems of all our operating entities are at and outside our company reach everyone
certified to OHSAS 18001, the internation- at Uniper who needs them. Onboarding
ally recognized standard for health and agreements with contractors include clauses
safety management, and are regularly obliging them to share this information with
reviewed and certified by independent their employees who work for us.
experts. In 2018 ISO published ISO45001, a
new and improved standard for health and We benchmark our safety performance
safety management systems. Our target is against our HSSE targets in monthly and
to certify 100% of our operational assets to quarterly reviews, which are presented to
“It’s important that we learn from previous incidents so that we ISO45001 by 2022. the Management Board and other senior
managers. The degree to which we meet
can avoid them in the future. This year we want to further improve
We systematically document and analyze our HSSE targets for improvement and stay
our reporting. The transparency regarding incidents at our com- incidents and near misses and strive to below the incident thresholds is factored
pany is already high. What we need now is for the information to be prevent their recurrence through effective into the variable compensation of Uniper
sufficiently meaningful and for it to be made available in a timely communications and corrective measures. senior managers.
fashion. That makes it more relevant for day-to-day operations so
that we can better protect each other from accidents.”
Frank Plümacher, Executive Vice President of HSSE & Sustainability.
Uniper
Sustainability Report 2018 Our people 25You can also read
