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Social Responsibility Report 2013 Eesti Energia Eesti Energia AS Tel Corporate Social Responsibility Report 2013 Corporate Social Responsibility Report 2013 EESTI ENERGIA AS Laki 24, 12915 Tallinn, Estonia E E Tel. (+372) 715 2222 STI EN E-mail [email protected] www.energia.ee E RGIA Corporate Social Responsibility Report 2013 Tallinn 2014 This report has been printed on 100% recycled environment friendly paper CyclucOffset. ADDRESS BY THE CHAIRMAN OF THE MANAGEMENT BOARD 4 IN BRIEF 7 STRATEGY 10 CORPORATE GOVERNANCE AND RISK MANAGEMENT 16 EMPLOYEES 34 CUSTOMER RELATIONS 54 ENVIRONMENTAL ACTIVITIES 74 SOCIAL ACTIVITIES 88 CONTENTS Dear 4 Reader! One of the cornerstones of the competitiveness of oil shale energy is its compliance with today’s environmental require- ments meaning that we are using oil shale in responsible man- ners not known recently. Today we generate less air emissions per each energy unit than ever before. Technology is the key to a world with cleaner air. Over the last three years we have invested close to 280 million euros in new developments. In October 2013 we completed successfully unique pilot project, which reduces NOx emissions in one energy generating unit of Eesti power plant almost twice. We are now taking another step forward by installing the deNOx equipment to the other four energy generating units. Last year we also started testing the low calorific value oil shale in order to exploit new oil shale mix in more efficient and Eesti Energia Corporate Social Responsibility 2013 ADDRESS BY THE CHAIRMAN OF THE MANAGEMENT BOARD CONTENTS economic way. The more efficient the production the lower burdening the surrounding environment for decades. Lower the impact on environment. heating and waste handling costs save the Estonians annually up to 7 million euros. Third important breakthrough in the front of environment friendly energy generation can be seen on the largest con- In the field of environment protection it is important that struction field in Estonia. By the end of the year more than half former oil shale mining territories would be recovered in the of the new Auvere power plant was completed. By 2015 our best possible way. In 2013 we completed an international generation portfolio will be complemented with Auvere power rowing channel meeting all international standards in former plant meeting all environmental requirements. Aidu quarry. The rowing channel will be part of high-level water sports centre to be completed by 2020. In order to New Life of Iru Power Plant return the former mining territories to natural and social We have also news about more environment friendly energy environments we have become the largest forest planter generation outside of oil shale energy. The 2013 “Team of sharing our experiences from Finland to the United States the Year” title went to Iru waste-to-energy unit team as this of America. unique solution in electricity and heat production re-utilises almost all mixed waste generated in Estonia. By the end of The significance of oil shale industry in Estonian economy the year we had burned more than 180,000 tonnes of waste is well supported by the fact that Eesti Energia contributed in Iru all of which would have otherwise ended up in landfilles 190 million euros to state budget in 2013 including resource 5 Eesti Energia Corporate Social Responsibility 2013 ADDRESS BY THE CHAIRMAN OF THE MANAGEMENT BOARD CONTENTS 6 and environment taxes, social and income taxes on person- close to 70%. We are glad to see that approximately 97% of nel costs and dividend payment to the sole shareholder all our customers decided to extend their agreement with Eesti impacting the development of society and economy. Energia after the first year on open market. This proves that customers like our clear and simple packages. The number of Contributing to Social Environment people who have filled in their energy profiles in our energy Significant part of our employees is in Ida-Virumaa region. saving website has tripled over three years and last year the In 2013 the number of co-operation projects in Ida-Viru- site was visited by almost 13,000 customers. maa region exceeded 30 including also the new initiatives. We hope that our ongoing contribution to the Ida-Virumaa We can increase the value of our company only when the community supports lasting positive changes and preser- full team is aware of their responsibilities and follows single vation of traditions. value principles. The internal training team comprised of Eesti Energia specialists and managers took a huge responsibil- The past year makes history as the electricity market was fully ity by bringing the new jointly developed core values to all opened also for Estonian retail customer. Today, the Estonian employees. The new core values we follow include: useful retail customer may choose between eight electricity sellers to customer, adding value, making it easy, it depends on me and the share of Eesti Energia in Estonian electricity market is and safety above all. SANDOR LIIVE Chairman of the Management Board Eesti Energia Corporate Social Responsibility 2013 ADDRESS BY THE CHAIRMAN OF THE MANAGEMENT BOARD CONTENTS In Brief Eesti Energia is an international energy company operating company, provides distribution network services to Estonian in the unified energy market of the Baltic and Nordic coun- customers. Internationally, we operate under the name of Enefit. tries. 100% of the shares of Eesti Energia are owned by the Republic of Estonia. Our unique experience in processing oil shale and our skills and technology are held in high regard around the world. The core service of Eesti Energia is oil shale mining for electric- Oil shale resource belonging to Eesti Energia in Estonia, ity, heat and shale oil production. As electricity retail company Jordan and the US are estimated at 11 billion tonnes. With we sell electricity to retail customers in Baltic Countries and nearly 7,000 employees, Eesti Energia is one of the largest to energy wholesale market. Elektrilevi, Eesti Energia Group employers in Estonia. SALES REVENUES EBITDA NET PROFIT INVESTMENTS 966.4 million euros 310.5 million euros 159.5 million euros 418.9 million euros +17.6% +11.5% +107.4% -18.4% CREDIT RATINGS ELECTRICITY SALES ELECTRICITY DISTRIBUTED SHALE OIL SALES * BBB+/Baa2 11.4 TWh 6.3 TWh 208.1thousand tonnes with stable outlook +13.4% -1.3% +10.0% (* changed in January 2014) 7 Eesti Energia Corporate Social Responsibility 2013 IN BRIEF CONTENTS ENTRUM — the best youth entrepreneurship 8 project The most valuable Events and Recognition employer in the 2013 Financial Year 2013 January February March April May Juuni We started the renovation By involving whole We were awarded Eesti Energia’s youth President Toomas Hendrik We organised international of Energy Discovery organisation we started with the most valuable entrepreneurship program Ilves recognized the most oil shale symposium. Centre, which will be updating our core values. employer’s award for the ENTRUM was announced entrepreneurial Estonian 400 world’s leading energy completed in summer third consecutive year. the winner of the best youngsters in ENTRUM experts discussed the Updated safety 2014. Co-financing youth entrepreneurship award gala. present and future of oil educational video was Test burning of mixed agreement was signed. project in the competition shale energy. made in Narva power municipal waste started in 4,900 young people were by chambers of com- Estonian Health Trails plants. We also updated Iru waste-to-energy unit. taught to avoid electrical We opened the first merce. The program was started with a video our safety standards. threats and prevent co-generation plant in also rewarded with the teaching modules at accidents during electrical Estonia, which uses mixed European corporate social www.terviserajad.ee. safety campaign. waste as fuel. responsibility award. We are one of the Ground-based construction We bought new rescue Eestiinitiators Energia of the Corporate project. Social Responsibility 2013 Nature Omnibus project works began in Kohtla min- machines to guarantee the recognized the outstanding IN BRIEF ing park. We are co-financ- safety of Eesti power plant participants of the Nature ing a theme park about and Enefit oil plant Photo of the Year 2013 Estonian oil shale history. in Auvere. competition. July August September October November December In the second phase of Narva Energy Run pleased The theme of Eesti Ener- We installed deNOx As part of the “Teach The young people from OSAMAT-project we almost 3,500 sports fans. gia environment day was equipment to one energy for All” program we are North Estonia participat- tested the most efficient the potential of oil shale generating unit in Eesti assisting Ida-Virumaa ing in ENTRUM program Rowing channel meeting method of turning oil ash and environment Elektrijaam to turn oil shale region in finding a science submitted a record of international standards shale ash into valuable friendly technologies in based energy generation teacher. 171 new ideas, the is opened in former Aidu material used in road energy generation. more environment friendly. purpose of which is the open pit mine. First test Eesti Energia Oil Industry construction. progress of Estonian rowing is accompanied We opened a unique We are the most competi- implements odor society. We introduced the mining by 300 people. Narva wind park on tive company among large management plan. profession and oil shale former ash field of Balti companies according to We support financially the We opened jointly with We informed our employ- industry, which is of key power plant. competitiveness ranking education of 22 young Nelja Energia a new wind ees and customers about importance to the region by Estonian Chamber of people through Ida- park of 18 energy gener- We co-founded the energy saving possibilities as well as to the whole Commerce and Industry Virumaa Talented Youth ator in Pakri peninsula.
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