Transition Together 2019 Annual Report
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Contents Transition together About us Strategy Results Governance Report of the Supervisory Board Financial statements Report of the Supervisory Board 107 Report of the Supervisory Board Content 112 Remuneration report for 2019 2019 Financial Statements 115 Financial statements 116 Consolidated income statement Report of the Board of Management 117 Consolidated statement of comprehensive income 118 Consolidated balance sheet 4 Transition together 119 Consolidated cash flow statement 4 Annual summary for 2019 120 Consolidated statement of changes in group equity 7 Foreword 121 Notes to the consolidated financial statements 183 Company income statement 8 About us 184 Company balance sheet 8 Profile 185 Notes to the company financial statements 9 Stedin Group's activities 12 Key figures and ratios for 2019 16 Strategy 16 Mission, vision and strategy 18 Developments within society and the energy market 20 Value creation 23 Sustainable Development Goals 24 Stakeholders and materiality 25 Connectivity, KPIs and targets 185 32 Results Other information 32 Improved grid management 189 Profit appropriation pursuant to the articles of Reliability of our grids association Affordable and efficient services 190 Independent auditor's report High-quality products and services 42 Facilitating the energy transition Built Environment General information Making industry more sustainable 201 Reporting policy Mobility 203 GRI Index Agriculture and land use 211 Three-year overview Electricity 213 Glossary 54 Sustainable business operations 217 Disclaimer Safety and security Professionally competent employees now and in the future One Planet Thinking 76 Financial results 80 Non-regulated activities 82 What have we learnt 83 Focus areas in 2020 84 Governance 217 84 Corporate Governance 95 Risk management 105 In-control statement 2019 Annual Report | Stedin Group 3 Contents Transition together About us Strategy Results Governance Report of the Supervisory Board Financial statements Transition together Annual summary for 2019 25 June – Rozenburg, in the province of South Holland, becomes the first place in the Netherlands to see existing 1st quarter homes heated using pure hydrogen. 27 January – A gas explosion at Jan van der Heijdenstraat in The Hague caused the front of a building to collapse and seriously damaged several homes. The explosion was caused by a crack in a gas main. 29 January – GOPACS platform launched. This initiative by the combined regional grid managers as well as TenneT is aimed at achieving a better balance between electricity supply and demand so as to prevent grid overload. 4 March – Drinking water company Vitens and Stedin sign a covenant. Combining activities underground results in less disruption for customers and leads to cost savings. 28 June – The Climate Agreement presented by the government receives unanimous support from the grid managers in the Netherlands. They endorse the aim of the Agreement and are concerned about the practical challenges that it involves, especially in view of the problems concerning a shortage of grid capacity. 3rd quarter 10 July – Richard Moti, Rotterdam city councillor with responsibility for work and income, presented the 1,500th senior secondary vocation diploma (MBO) to the graduating classes of Stedin's in-house training school. A group of 169 students were awarded an MBO diploma. They are now working as fitters, helping to realise the energy transition in Rotterdam and surrounding area. 13 March – Joulz is sold to 3i Infrastructure, a powerful new owner. Job security of the roughly 150 employees is 5 September – Stedin and research institute Kiwa examined guaranteed. how the gas network serving Stad aan ’t Haringvliet can gradually switch from natural gas to green hydrogen, which is 2nd quarter then used to heat the 600 homes in the village. Stedin's 3 May – The grid managers launch the 'Dig Safe' ['Veilig existing gas network can be used for this purpose, graven'] campaign aimed at preventing power outages and eliminating the need to install a new network. unsafe situations during garden maintenance. 10 September – Zeeland becomes the first province to 20 June – NetVerder is a new name in Stedin Group. It covers develop a Regional Energy Strategy (RES), ahead of any the activities focusing on energy infrastructures apart from other region. The process enabling the strategy to be natural gas and electricity. In July, NetVerder is teaming up developed has been lauded. The grid managers (including with housing associations and the municipality of Delft to Enduris) and the many stakeholders contributed through a install a heating network in the city. series of sector platforms. 4 2019 Annual Report | Stedin Group Contents Transition together About us Strategy Results Governance Report of the Supervisory Board Financial statements 16 September – In the Hoog Dalem district of Gorinchem, 25 October – Demand for charging points for electric cars is several homes have been fitted with smart equipment that is set to double in the coming years. In Utrecht, The Hague and actively regulated according to the energy generated by the Rotterdam, Stedin is working with the municipal authorities homes and their energy usage. The aim is for the combined and the charging station operators to develop an efficient homes to regulate their consumption of the locally generated ‘single operating routine’ working method. This method energy by exchanging it as and when needed. ensures that charging stations are installed quickly and at a lower cost. 30 September – The 10,000th connection for a gas-free new- build home was requested in September. In the third quarter, 6 November – Stichting Zeeuwse Publieke Belangen a total of 92% of all newly built homes in Stedin's service (Zeeland Public Interest Foundation) provides financial area were gas-free. As the same figure in the second quarter support to the GreenPort Brouwershaven project. This port was 79%, it is a new record. will be the first harbour in Zeeland where electric ships can charge their batteries with sustainable energy. 4th quarter 10 October – Increasing the capacity of the electricity grid in the Port of Rotterdam can be done more efficiently and cheaply. This outcome emerged from a study by the Port of Rotterdam Authority, Stedin and TenneT into the implications of the energy transition. Demand for (green) energy from the industry in Rotterdam is set to increase significantly in the coming decades. 14 October – Minister of Social Affairs and Employment Wouter Koolmees paid a visit to Stedin's in-house training school. He was shown around by CEO Marc van der Linden. The Minister sat in on a class being given to residence permit 11 November – Stedin Group issues its first green bond. The holders who are being trained by Stedin and discussed 500 million euros raised are linked to investments made by Stedin's plans for Lifelong Learning. He also tested his Stedin Group in sustainable projects. The green bond issue technical skills in the switching centre. fits well into Stedin Group's strategy of making a contribution to creating a more sustainable society. 21 November – Stedin and other regional grid managers provide details of the mapping of their electricity grids as open data on their websites. This provision facilitates decision-making on the construction of solar farms or new- build areas, for instance, and allows parties to move more quickly in the project orientation phase. 2 December – Current affairs programme Nieuwsuur broadcasts an item on why the costs of managing the electricity grid will continue to rise in the future. Stedin CEO Marc van der Linden joins the programme on behalf of Netbeheer Nederland and explains that the energy transition costs money: 'It is a political choice as to how we want to divide these costs.' 18 October – All local authorities must have adopted a Transition Vision for Heat by the end of 2021. This vision sets out alternatives for gas-free heating and cooking within each district in the local authority's area. An information package helps local authorities to plan for these gas-free districts. 2019 Annual Report | Stedin Group 5 Contents Transition together About us Strategy Results Governance Report of the Supervisory Board Financial statements Transition together This annual report highlights Stedin's customers, stakeholders and staff, who are transitioning together towards a sustainable energy supply. You can see the following people on the cover page from top left to bottom right: • Eelke Kraaijeveld, Gorinchem city councillor with responsibility for the energy transition, among other things • Lennard Seriese, Energy Transition Senior Account Manager at Stedin Netbeheer • Tom Meewisse, Director of Meewisse Roses • Jacqueline Fernandes-van Lit, Account Manager at Stedin Netbeheer • Ans Groenewegen, Strategic Environmental Manager at Dunea Duin & Water • Mustafa Karapinar, Smart Meter Fitter at Stedin Netbeheer • Henk van den Berg, HoekscheWaardDuurzaam cooperative • Gijs Lambooij, Strategic Environmental Manager at Stedin Netbeheer • Daan Verbaan, Energy Supply Systems Specialist at ProRail • Gino de Windt, Account Manager at Stedin Netbeheer The executive board of Stedin Group. From left to right: Marc van der Linden, David Peters, Danny Benima, Judith Koole 6 2019 Annual Report | Stedin Group Contents Transition together About us Strategy Results Governance Report of the Supervisory Board Financial statements Foreword existing grid. There is a lot of work still to do and we will need to invest substantially