CSR 2013 CSR IS PART OF OUR DNA At SE, CSR is about sustainability, profit- ability, and acting in a responsible manner – to the benefit of our children, too. WHAT IS

TABLE OF CONTENTS

About this Report 06

Welcome 10

Who is SE? 14

Legitimate and Responsible Business Practices 18

Improving Customers’ Sustainability and Digitalization 22

Leading as a Role Model 28

THIS Collaboration with Others 32

The Strongest Team 36

INVOLVEMENT IN society 40

Auditor’s Statement 46

Reporting Practice 48

Principle, Key Figures and Ratios 49

GRI Overview 50 06 – 07 ABOUT THE REPORT CSR REPORT 2013

ABOUT THIS REPORT LET US This is SE’s third CSR Report. Together with SE’s annual report, it will constitute SE’s total reporting for 2013.

Scope Report structure This report includes Syd Energi a.m.b.a. and its subsidiaries, as well as our joint Following a description of SE and our basic beliefs, it CREATE A venture with PFA Pension, SE Blue Renewables, referred to collectively in the re- is now possible to read further about the most signifi- port as “SE”. Affiliated companies and independent companies such as CLEVER cant areas of focus for 2013, as well as several plans and SE Blue Equity are not included in the report. for the future viewed in light of the six building blocks of the strategy. Reporting Principles The purpose of SE’s CSR Report is to give a collective significant and balanced The report describes our CSR effort at a relatively SUSTAIN- view of relevant CSR-related holdings, goals, issues, activities, and results for 2013 general level. Our purpose is not to include detailed at a group level. We believe that the report fulfills this purpose. information that is mainly of importance to individual workplaces, products, processes, and activities. This The report also serves as an annual status report as required by the United Na- is more conveniently available in SE’s annual report tions Global Compact, and it is the legally required report on Corporate Social Re- for 2013 or at se.dk. sponsibility (CSR) pursuant to Section 99(a) of the Danish Financial Statements ABLE, Act. The report has been prepared based on the reporting principles in the Sustainabil- ity Reporting Guidelines from the Global Reporting Initiative (GRI) and the corre- Introduction sponding industry supplement for utility companies. Since the industry supple- ment for telecommunications is still being prepared, it will not be used. An overview of relevant GRI indicators with references is available on pages 50-51. KNOWLEDGE- Legitimate and Responsible Business Practices Based on an analysis conducted by Deloitte in November and December of 2013, we consider how SE can further strengthen its future CSR effort. Several of these considerations are related to how SE can comply with ISO 26000 and Danish Improving Customers’ Standard 49001 in the future. Sustainability and Digitalization

The topics selected for the report are based on SE’s CSR strategy, which was cre- As a The Strongest Supporting Collaboration BASED ated in 2011, as well as on input from the ongoing dialogue with our customers, rolemodel Team Society stakeholders, and business partners. The topic selection was based on an evalua- tion of significance and of the stakeholders. This was updated in connection with this report. With these considerations as a basis, the most important stakeholders Conclusion consist of SE’s biggest customers, owners, employees, current and potential busi- COMMUNITY ness partners, the press, politicians, and opinion makers. KEY FIGURES CSR REPORT 2013

SE’S KEY FIGURES

SE – a modern cooperative society SE is one of Denmark’s largest energy and telecommunications companies. Based If you would like more background information on SE, in our utilities supply area in Southern Jutland, we provide great solutions for our feel free to read the chapter “Who Is SE?” and SE’s customers throughout Denmark. With our headquarters in Esbjerg and larger offices 2013, Annual Report or visit our web site se.dk. spread throughout Denmark – in Aalborg, Aarhus, Copenhagen, Horsens, Hjørring, Kolding, Marstal, Middelfart, Nørre Alslev, Odense, Ringsted, and Sønderborg – SE Address employed 1,227 in 2013. The primary goal for us is to create the best total customer SYD ENERGI a.m.b.a., experiences in the areas of energy, climate, and telecommunications while being the Edison Park 1, 6715 Esbjerg N, most value-creating player in the Danish energy and telecommunications sector. Phone 7011 5000, e-mail [email protected]

Equity Last 3 years in billions DKK EBITDA Last 3 years in millions DKK Employees Last 3 years

10 700 1500 9 630 1350 8 560 1200 671,0 9,09 9,03 9,09 7 490 1050

6 420 900 1.227 5 350 750

4 280 400,7 600 730 720 3 210 450 316,4 2 140 300 1 70 150 0 0 0

2011 2012 2013 2011 2012 2013 2011 2012 2013

Wind tubines Last 3 years Broadband customers Last 3 years Distributed kWh Last 3 years in billions DKK

300 250.000 5,0 270 225.000 4,5 275.556 240 285 200.000 4,0 210 175.000 3,5 180 150.000 3,0 3,3 3,3 150 125.000 2,5 3,2 120 100.000 2,0 90 75.000 1,5 60 50.000 1,0 30 25.000 0,5 9 59.960 1 0 45.247 0

2011 2012 2013 2011 2012 2013 2011 2012 2013 CSR is created as a joint effort of the employees who make up SE on an everyday basis 10 – 11 WELCOME CSR REPORT 2013

STRONG COOPERATION CREATES OPPORTUNITIES AND RESULTS

It is in the collaborative we make our visions come true, and where we create the future that we want to be a part of. When we actively choose to put CSR on the agenda, it is with the desire to take advantage of our strengths and competencies to lift the community that we are a part of. We want to support the conversion to a greener energy system and deliver the digital infrastructure of the future. We don’t do this just because we can, but because it’s the right thing to do.

To SE, CSR is more than a framework for sustainable corporate conduct, in everyday operations as well as in our involvement in the community; it is a natural part of our culture, our cooperative DNA, and the way we do business. Simply stated: CSR is something we deliver every single day at SE; it’s the story of how our visions and big plans are made into reality – a reality that makes a difference for our customers, owners, stakeholders, employees, and the community that we are a part of.

We do what we say we will – and we’ll keep on doing it At SE, there is action behind our words, and we are not afraid of being the one to take the first step on a new playing field. When we say that we are going to reduce the environmental impact, we first take a look at ourselves and use the competencies we have to create the most sustainable and profitable operations. We don’t want to just go with the flow; we want to show a conduct that will inspire others.

Niels Duedahl, CEO 12 – 13 WELCOME

Many have heard us say that development can only grow out of sound business We are also pleased with our strong partnership with CSR Vision practices. For this reason, our CSR effort is not only intended to contribute posi- PFA Pension. Together, we have established SE Blue tively to the community; it is to launch from a business where profitability and sus- Renewables – making it possible to invest in 272 Dan- tainability are mutually supportive. Indeed, it is precisely through this interplay that ish windmills – as well as SE Equity, which invests in the great opportunities for creating growth and development arise. companies that work with energy-efficient, environ-  We take the lead as a role model by strengthening  mentally friendly solutions. our own sustainability and digitalization. Reality overtook the vision – our new vision for 2018 is ready In 2011, we put our vision and strategy for the CSR effort into words. In 2013 we CSR is also about bike riding, employee satisfac- continued along that same track. Assuming an active community responsibility is tion, and fundraising for at-risk children  We support community responsibility through  largely about creating the right solutions in a cost-effective manner for customers, There are several other good initiatives worth mention- cooperation and partnerships. owners, stakeholders, and employees, who in turn will create the solid growth and ing: The multiple climate partnerships resulted in the opportunities for the community that we are a part of. We believe this is funda- greater energy savings, the installation of an electricity  We motivate and strengthen the team that ensures mental to the sustainable knowledge society of the future. SE has grown considera- grid buried below the surface provided high certainty bly in recent years – from primarily being a regional electricity provider to our present of supply during the powerful fall storms, and another our business goals and the total customer experience. status as a national energy and telecommunication group with international ambi- successful SE Tour raised DKK 608,139 for Save the tions. This means that reality has surpassed our business plans thus far. As a result, Children Denmark’s experience clubs. In 2013 we had  We contribute actively to the future of the community we have crafted a new vision, an aspiration, and a strategy plan for the period be- an internal focus on education, health, and the physi- that we are a part of – regionally as well as nationally. tween now and 2018. cal and mental work environment, not to mention the values and rules of conduct that make up our unique Rules of conduct set the framework for our modern group culture. This focus will continue in 2014. To make sure that everyone knows the rules of the game, we have created a set of rules of conduct that will ensure the realization of the above. SE’s rules of conduct With the ambition of participating in the initiative, in are a picture of the company that we want to be. It is an expression of the attitude 2013 we joined the UN Global Compact, requiring us and culture that make up our strong team of engaged employees. It is outlined by to work actively in favor of human rights, employees’ a strong culture where we, as a modern group, focus on the needs of the custom- rights, the environment, and fighting corruption. Need- er while also setting a course that will benefit employees; members; stakeholders; less to say, this support and commitment to the UN and last, but not least, the surrounding community. Global Compact will continue in the future.

As mentioned above, at SE CSR is fueled by business. Hence, it serves as the ba- CSR is an ongoing process where we learn as initia- sis for legitimate, responsible business conduct for our four major indicators ex- tives develop or new ones come into existence. To a plained to the right on page 13. great degree, it is also a process that depends on the effort that we all make every single day. CSR is based What has happened on the CSR front since last time? on willingness to make a difference, and on a strong Like in years past, the objective is still to use this yearly report to give a fair repre- culture supported by our rules of conduct and our four sentation of our results by providing factual data and by reporting on our success- core values: Closeness, openness, courage, and sus- es as well as on our challenges. Previously we emphasized the goal of reducing tainability. our CO2 emissions by half by 2020. During the present reporting period, we have experienced a remarkable reduction of our CO2 emissions compared to last year, We look forward to reporting on how the CSR vision both because we moved into our own energy-efficient headquarters and because developed in 2013 – in concrete cases as well as in we have made a big effort to make the environmental profile of our vehicles more general initiatives. efficient. However, we should note that with the acquisition of Stofa, we have re- ceived an added environmental impact. It is a process with which we are continu- ously involved. From day one, SE’s access to CSR has been an important guide- Enjoy reading SE’s CSR Report 2013 line for our colleagues at Stofa.

A number of other initiatives and strong partnerships came into existence and bore fruit in 2013. The roll-out of fiber optics is continuing. Thus, Southern Jutland is still Jens Bahne Jørgensen in the lead when it comes to providing high-speed broadband in Denmark. As a re- Chairman of the Board sult, the region is increasingly capable of harvesting the synergies and opportuni- ties inherent to digitalization. Furthermore, with the acquisition of Stofa, we are Niels Duedahl strengthening our possibilities of bringing high-speed broadband to all of Denmark. CEO 14 – 15 WHO IS SE?

WHO IS SE?

SE is one of Denmark’s biggest energy and telecommunications companies. We purchase and sell electricity and energy solutions to Dedicated employees create the best customer experiences private as well as corporate customers. In addition, we distribute more than 3.2 billion kWh to 266,000 homes and businesses through our robust power grid in Southern Jutland. We also provide consulting on how to reduce corporate energy consumption and environ- mental impact. In addition, we invest in renewable energy sources. Another important line of supply in the modern knowledge society are our digital solutions in the form of our high-speed broadband where more than half a million customers now reap the benefits of the stable, lightning-fast broadband connections that bring them Internet, TV, and phone services.

Over the last four years, SE has grown notably bigger as a company, measured in streamlines the energy consumption of larger corpo- terms of customers, revenues, earnings, employees, and our playing field. We have rations, government institutions, and geographical ar- gone from primarily being a regional utility company to being a noteworthy national eas, thereby reducing their energy costs and environ- energy and telecommunications group with international ambitions. In addition to our mental impact. strong corporate culture supported by dedicated employees and our values, a rele- vant factor was SE’s business plan “20i15”, which had the clear goal of creating an SE Energy Sales, a seller of energy and sustainable operating profit (EBITDA) of DKK 670 million by 2015. energy products to both corporate and private cus- tomers. As is often the case in a dynamic world, reality has overtaken our plans, especially with the acquisition of Stofa. For this reason, for the period up to 2018, SE has created SE Energy Grid, which operates and develops a fine a new vision and a new aspiration and strategy plan. On top of that, we have estab- mesh electricity grid, spanning more than 19,000 km lished a set of rules of conduct that will ensure that we carry out these three initiatives. and providing power for more than 266,000 homes and businesses. Goal: DKK 7 billion in turnover by 2018 With a clear ambition that continues to focus on positive customer experiences Focus on the customer and value creation, our vision was expressed in an aspiration that draws a picture In 2009, SE embarked on a cultural journey with four of the company that we would like to become by 2018. Aspiration is to be under- central core values that are about more than just meg- stood as a search for a higher degree of cohesion. The means for this include our awatts, gigabytes, and dollars and cents. These are new strategy plan “7-10-18”. It involves a goal of generating a turnover of DKK 7 our four values: billion by the end of 2018 and of increasing our earnings by over 10 % annually. CLOSENESS The six business areas that will contribute to generating this result are the following: OPENNESS COURAGE Stofa , which offers TV, broadband, and telephone services to all private custom- SUSTAINABILITY ers; antenna, homeowners, and property owners associations; and municipalities. These values not only reflect the culture that is in and SE Telecom, which offers digital business solutions that include broadband, tele- around SE; they also focus considerably on our ac- phone services, secure data connections, and cloud services, not to mention tele- cess to the customers. At SE, it’s all about having a commuting jobs. close working relationship co-workers, but this also applies to our relationship with our customers. We SE Blue Renewables, which invests in and produces renewable energy, such as believe that open and active dialogue will create the land-based windmills, throughout Denmark. necessary trust and credibility, which are fundamental to the community that our customers and owners are SE Big Blue, which, at both the domestic and international level, optimizes and a part of. 16 – 17 WHO IS SE? CSR REPORT 2013

Rules of conduct are guidelines for everything we do surplus and profits, we are able to concentrate on cre- What are our strengths, and where do we have room for improvement? Our four values are expressed in SE’s rules of conduct, which are on display eve- ating a sound business that will benefit our owners SE has a good foundation in terms of executing CSR in the areas of climate, digitaliza- rywhere in our company. We are convinced that only by living up to our rules of throughout the region. tion, satisfaction, and community involvement. We want to make a difference, and we conduct and values can we form a strong SE team that will create a strong busi- want to live up to the CSR promises that we have made. The customers experience ness, which in turn will yield impressive results that will fulfill the ambitious goals. SE’s view of CSR this as they become our focus, and by the breaking down of corporate barriers. As a BRIEFLY ABOUT SE SE’s overall vision for CSR is to create a more sustain- result, SE has a powerful starting point for entrenching CSR company-wide. We also Basically, it is about creating an informal work environment where everyone has able society, among other things by supporting con- have to acknowledge that there is room for improvement in several areas. Among oth- SE is one of Denmark’s biggest energy and telecom- the courage to make and admit mistakes, and where everyone has an intimate version to a greener energy system and by aggressive- er things, this means that SE is going to make an effort to strengthen diversity among munications companies. We are a modern and open knowledge of the “engine room” of our business. For example, our executive lead- ly establishing a digital infrastructure. our leaders and employees, as well as to increase motivation even further to make use cooperative society that is close to the customer. ership takes the lead with direct dialogue meetings and one-on-one (and “one-on- of SE’s many high-speed broadband connections, such as for cloud solutions. A third many”) communication using social media. It is all about making ourselves availa- CSR must be business oriented since nothing will effort is that we are going to ensure even higher compliance with our Code of Con- SE’S six general business units: ble to answer questions from our customers and members wherever they are. grow from an economically unsound foundation. In duct, internally as well as with select providers. A fourth important effort is that we are SE Energinet, SE Energisalg, SE Big Blue, real life, this means that we must be able to incorpo- going to focus on reducing our own environmental impact even further. SE Blue Renewables, SE Telecom og Stofa. At SE, we take responsibility for the entire group, we say things straight out, and rate initiatives into our everyday work as something we inspire and motivate one another. We recognize that all change starts with indi- that is useful, interesting, and manageable. CSR con- CSR in multiple dimensions SE offices: vidual behavior, common sense, and by always assigning the strongest team to siderations must be an integral part of our mindset. At SE, we implement CSR internally while delivering CSR products to major Danish Aalborg, Aarhus, Copenhagen, Esbjerg (Headquar- the tasks at hand. They have to be founded on our values and imple- businesses, municipalities, and government institutions. This yields two natural ters), Horsens, Hjørring, Kolding, Marstal, Mid- mented in a welcoming, engaging dialogue with the CSR dimensions, one of which is focused on delivering and selling CSR-support- delfart, Northern Alslev, Odense, Ringsted, and Rules of conduct benefit both employees and customers world around us. ive measures to our many customers. Sønderborg. As SE’s business continued to develop, at the end of 2013 we decided to update SE’s internal rules of conduct and initiate the re-launch of our values, which clearly As a modern cooperative society, CSR contributes to While this dimension is naturally rooted in our business offerings, the other dimen- SE’s service area: define the way in which SE’s employees are to face the world. For this reason, all an increased focus on developing initiatives that sup- sion is associated with SE Group Service and other support functions that have Covers more than 7,000 km2 from Ringkøbing SE employees must commit to living these rules of conduct, and it is our experi- port the community and benefit all customers and the role of securing the SE group’s own CSR initiatives, as well as securing a close Fjord in the north to the border with Germany in the ence that everyone does that – not because they have to, but because they ac- owners. partnership with our other stakeholders. In many areas, these initiatives are going south. SE has about 266,000 members. cept this view and respect that there is space for discussion and opinions about to merge. However, since we wish to make a strong effort in terms of both dimen- the business, but with a shared, overall goal: Placing the customer, business de- Briefly stated, it is about taking our own medicine in sions, we have chosen to base the coordination of our CSR efforts in the SE Net revenues (2013): ...... DKK 4.6 billion velopment, and the future of society at the center. In particular, this is also about terms of sustainability, treating each other and the Group’s communications department, which will create and continuously maintain Equity (2013): ...... DKK 9.1 billion living up to our commitments as a cooperative corporation. The majority of our world around us properly, and always thinking in terms a steering committee capable of managing and following up on SE’s CSR pro- Number of employees customers consist of our owners. This means that rather than only thinking about of cost-effectiveness. gress and prioritizing new needs and initiatives. (Year-end, 2013): ...... 1,227 employees 01 18 – 19 LEGITIMATE AND RESPONSIBLE BUSINESS PRACTICE

LEGITIMATE AND RESPONSIBLE BUSINESS PRACTICE

We want to run a sound business where cost-effectiveness and sustainability are mutually supportive, and where action, cooperation, and good intentions are based on appropriate business ethics. For this reason, we always set high requirements for the foundation on which proper business conduct should be based. It is important that we exhibit responsible conduct toward our providers and business partners that will benefit the community and our customers.

Accepting and elevating a legitimate, responsible business practice means that we goal, yet still about 40% below the national average of always have high expectations of the practice that is displayed and in everything 21 minutes. The difference is very much attributable to that we deliver to our customers. This particularly includes high certainty of supply, two storms – “Allan” and “Bodil” – that hit Denmark at high product quality, and the best possible advice, all with profitable capital man- the end of the agement in mind. As a cooperative society, it is our duty to maintain responsible year. However, there are also other natural reasons business ethics and a high industry standard. why we fell short of our goal, including a more deter- mined focus on registering even the slightest outages. SE to be the secure solution Only when we know all the details can we find solu- It is our responsibility and privilege to be in charge of operating and developing tions capable of ensuring that our customers will find two critical infrastructures: the electricity grid and the fiber- and coax networks. even greater enjoyment in knowing that that the lights We are well aware that an outage can affect the everyday lives of thousands of always turn on. customers. For this reason, we constantly focus on optimizing and developing the processes related to this service, thus enabling us to ensure that the network will The answer is well below the surface consistently meet our strict quality requirements. The fact that our outage time is significantly below the national average is primarily the result of a modern As far as high-speed broadband is concerned, we managed to secure an uptime electricity grid based on underground cables. Another of 99.9% on our fiber broadband networks, among other things by using automat- reason is why our people are quick to react when ic forwarding to alternative lines in the event of an outage. The uptime on the coax there is an outage is that we have optimized the fleet broadband network was 99.83%, which also includes units for digital TV. To main- management of our technicians and that through con- tain the high quality, we continuously invest in updating our networks. Among oth- stant monitoring, we make sure that we can connect er things, in 2013 we invested in a super-core solution, which is intended to create to alternate lines in case of an outage. cohesion and efficiency in a nationwide network. This will render a more flexible network architecture, and the network can quickly and cost-effectively be expand- Generally, we have been taking a closer look at how ed with additional capacity. we can optimize and develop the processes associat- ed with this service. Meanwhile, we have increased We live up to the domestic goals – but that is not (good) enough for SE! our maintenance of and focus on bigger customers The lights need to be on at all times. Therefore, we have set some ambitious goals and nerve centers. for the certainty of supply for our electricity grid in our service area. The goal is to be considerably below the government benchmarks. In 2012 we had an ambitious In 2013, we replaced 65 km of 10/15 kV suspended goal of no more than 12 minutes of outage time*, which we wanted to challenge cables with underground cables, and 155 km of sus- further. For this reason, we set the outage at 10 minutes for 2013. The outage time pended cables were dismantled. This means that after for 2013 ended up being 12.7 minutes, which of course is considerably above our a multi-year effort, we have now completed cable in-

In our operations room, we have a complete overview of our network *) Outage time is the average time during a year that each customer in SE’s service area is without electricity. 20 – 21 LEGITIMATE AND RESPONSIBLE BUSINESS PRACTICE CSR REPORT 2013

stallation for both the low voltage and the medium voltage grid. The cable network We pay close attention to our customer satisfaction key chasing policy, in 2013 we crafted a new Code of Conduct. Its main purpose was our customers. An important piece of the puzzle has has several circuit breakers. This means that in the event of an outage, service can figures, and for this reason we are very pleased with to establish accountability requirements for select providers. been the “20i15” business plan, which was intended to be restored through other means so the customers can quickly have their power the repeated positive customer satisfaction surveys. generate an operational surplus of DKK 670 million. restored. Our positive experiences with a buried energy network make us consider Read more about this in SE’s 2013 Annual Report. With the acquisition of Stofa, not to mention the rising number of activities abroad (EBITDA) in 2015. I Since we reached our goal ahead of the possibility of burying cables for the high voltage grid. Not only does the bury- and, hence, international providers, we have since found it necessary to translate time through a variety of activities, including the acqui- ing of cables beautify the landscape of Southern Jutland; it also increases the sta- Fleet management creates a high level of services the document to English and adapt it to international standards. sition of Stofa, toward the end of 2013 we created a bility of the electricity grid and reduces the number of power outages. In addition, and reduces our CO2 impact new strategy plan called “7-10-18”, which is intended to the cables reduce our network loss and environmental impact while strengthening By fleet managing all mobile service technicians, we The Code of Conduct is continuously written as a comprehensible guide that pro- generate DKK 7 billion in revenues by 2018. SE’s 2013 the cost-effectiveness of the electricity grid. are able to make specific agreements with our cus- vides concrete guidelines for provider accountability and ethically responsible con- Annual Report features additional information about tomers as early as our first contact with them. Since duct. On the same token, it will protect our employees against accusations of cor- SE’s 2018 strategy “7-10-18” and many of the initiatives The underground cables proved worthwhile early September of 2011, all agreements have basically ruption. Among other things, it will ensure an objective basis for decisions when that will contribute to completing this task. In 2013, Denmark experienced two powerful storms that really put the electricity grid been kept in terms of reaching a customer within a selecting providers and their value chain. technicians and control room employees to the test. During the storm “Bodil”, 14,131 three-hour time frame. In addition, fleet management Through the Danish Energy Association, the energy customers went without power for an average of 8.21 minutes throughout the entire ensures that we dispatch the technician who is geo- The new document will be included as a sub item in standard contracts in a signifi- sector has entered into an energy savings agreement day, evening, and night. According to the Danish Energy Association, 70,000 Danish graphically closest to the customer. Not only does this cant number of the contracts that we will enter into from now on. It is important to with the Danish Ministry of Climate, Energy and Build- power customers were without electricity during the storm. The average outage reduce driving time and mileage; it also saves fuel, take the context into account and to evaluate the scope on a case-by-case basis. ing, which is effective from 2013 to 2015. The purpose among the affected customers was 25 minutes. During the storm in October, we thus reducing CO2 emissions. With the growth in international activities, it has become increasingly relevant to es- of the agreement is to reduce the overall Danish ener- had about 100 fewer power outages, and 60,774 customers, primarily in Aabenraa tablish requirements for provider accountability and ethics. gy consumption compared to the development of the and Sønderborg, were without power for 1 and 3 minutes, respectively. Responsible conduct and safety GDP. Like all other energy companies, the agreement Safety is more than ensuring that installers, techni- Cost-effective capital management is our duty to the members requires SE to reach an annual fixed savings goal. The smart grid of the future cians, and others have clear procedures for handling As a responsible cooperative society with an equity of approximately DKK 9.1 bil- By reading meters remotely, we make sure that both we and our customers are potentially hazardous and life-threatening situations; it lion, we need to be cost-efficient in managing the capital that our owners have en- Documentation of energy savings able to follow the actual hourly consumption of electricity. It also makes it possible is also about our providers taking appropriate precau- trusted us. It is important to include our members through our board of directors According to the Danish Energy Agency, in 2013, SE’s to quickly identify and react, and potentially send an e-mail or a text message to the tions to prevent accidents. As a result, SE’s safety pro- when making major business-related decisions. We constantly strive to explain how network company achieved documented savings of a customer, in the event of an irregularity. At the same time, it calculates actual usage cedures are also part of the work processes for sever- the equity capital is used, how it creates value for our customers and owners, and total of 113.5 million kWh. This did not fully live up to rather than using estimated payments on account. These data, plus continuous ex- al of the providers who perform tasks for us. At the how its ROE is calculated. our own goal of 124.4 million kWh. However, we are pansion of the fiber broadband network, give us some favorable options for design- same time, it is important to establish a framework pleased that we managed to save so many kWh, and ing the solutions for the Smart Grid infrastructure of the future – an intelligent, sus- where ordinary private individuals are not subjected, or It is the backbone of our efforts to be among the most competitive players in the we look forward to working hard to reach the expected tainable, electricity-based grid capable of handling high volumes of wind power. do not expose themselves, to danger associated with Danish energy and telecommunications industry while delivering the best service to savings in 2014 of approx. 118 million kWh. our plants and activities. If there is a risk of personal The electricitygrid will play an even greater role in the energy systems of the future injury despite compliance with all rules and proce- R: realiseret M: mål with the conversion from black to green energy. A rising share of the energy con- dures, we will of course consider how we can make an sumption will be electricity. The electricity system will involve even more wind and extra effort to prevent potential accidents. solar energy. Likewise, consumption will increase, particularly for heat and trans- Downtime (Electricity grid) Uptime (Broadband) Realized savings portation in the form of heating pumps and electrical vehicles, trains, and ferries. It Generally speaking, we can conclude that there have Last 3 years in min./year Last 3 years in % Reported to the Danish Energy Agency in the last is our ambition to contribute to the development of the solutions that are needed been very few personal injuries in years past at SE’s R: Realized. G: goal 3 years in mill. kWh. to enhance and develop the smart grid and exploit the potential capacity of the plants and facilities and as a result of our activities. electricitygrid. Like the previous year, no incidents were recorded in 15 100% 120 2013 where private individuals or providers experi- 13,5 90% 108 99,96 99,98 Reliable and comprehensible production are also good customer service enced an accident as a result of tasks or similar work 99,87 12 80% 96 114

When we promise our customers a specific product, such as a 40/40 Mbps performed under contract with SE. 113,5

10,5 12,7 70% 84 12,37 12,00 connection, then that is the speed the customer gets, and preferably a little more. 9 12,00 60% 72 10,88 Based on customer preferences, we strive to deliver open and relevant advice Focus on provider responsibility and ethics 7,5 50% 60 10,00 every time, while of course also keeping the agreement that we have entered into. We expect the providers with whom we actively work 6 40% 48 61,3 It is about always delivering a total customer experience and about helping the to not only display safe, responsible conduct, but to 4,5 30% 36 customer, through consultative sales, to find the solution that can make the great- also produce and deliver products and services in an 3 20% 24 est positive difference. Whether it is an international corporation looking to offer ethically responsible manner – with a focus on the en- 1,5 10% 12 telecommuting opportunities to its Danish employees, a major Danish corporation vironment and work conditions. Needless to say, as a 0 0% 0 R G R G R G aspiring to become more energy efficient, or a private customer who wants Smart- result of SE’s business development, our list of provid-

Tv or a green energy source, we will do our best to meet the concrete wants ers now extends far beyond trenching contractors. 2011 2012 2013 2011 2012 2013 2011 2012 2013 and needs. Based on existing guidelines and our updated pur- 02 22 – 23 CSR MISSION

IMPROVING CUSTOMERS’ SUSTAINABILITY AND DIGITALIZATION

Sustainability and digitalization are high on our CSR agenda. This is because we use our core competencies in the area of energy, climate, and telecommunications to future-proof the community that we are a part of. We are – and should be – a modern cooperative corporation with a constant desire for development and to go our own ways. Because of our special cooperative DNA, we consider ourselves better prepared to face the current trends and ready for the challenges that the future will bring

SE participates actively in several initiatives that promote digitalization and sustain- provide wind power from about 25 windmills, and that ability, and we have some of Denmark’s strongest competencies for this purpose. our eight established windmills would produce a total We meet our customers with a competitive and sustainable plethora of products of about 70 GWh per year. Not only does the partner- and services that save them both time and money. This way we will find the solu- ship with PFA meet the goal significantly; it has also re- tions that are not only the most optimal for the customer, but which will also bene- sulted in our being the leader in Danish land-based fit society. We activate the solutions that will form the basis for the digital and sus- wind energy. tainable society of the future. The many windmills that SE Blue Renewables now Wind power – an important part of the energy system of the future has at its disposal enable us to produce wind power at Our investment in wind power plays a central role in the transition from fossil ener- relatively low and stable costs. The investment benefits gies to a sustainable energy system. Since wind power is a low-risk, renewable members as well as customers, but it also benefits the

energy source, it is a natural part of the solution for creating a CO2-neutral Den- green change in Denmark. When viewed in relation to mark. This investment is intended to ensure that our region, as well as the rest of the Danish government’s goal that by 2020, 50 % of Denmark, will reach the goal for the amount of wind power in our energy system. electricity in Denmark will come from renewable ener- As stated, we put our words into action when we contribute to ensuring that Den- gy sources, our efforts give this ambition a significant mark will be free from the use of fossil fuels by 2050. boost.

Together with PFA Pension, SE invested DKK 760 million in DONG Energy’s port- Already, the company has invested about DKK 1.2 bil- folio of 272 Danish windmills, about 250 of which are land-based with the rest lo- lion. Thus we are off to a good start, and the conditions cated in coastal windmill parks. As a result, SE and PFA Pensions’s new joint-ven- are beneficial for increasing more financial muscle to ture company, SE Blue Renewables, now have a total capacity of 226 MW the company in 2014. At present we are working on a distributed between 285 windmills. We expect the windmills to be capable of pro- series of projects that together total a capacity of 700 ducing about 470 GWh annually, which is equivalent to the annual electricity con- MW – i.e., more than three times our present capacity. sumption of about 120,000 homes. Of course, we are also aware of the challenges inher- We are leaders in land-based wind energy and actively benefit ent to erecting windmills close to residential areas. For the green change this reason, we are always happy to enter into a dia- In 2012, we were originally able to report that by the end of 2015, we expected to logue with local communities. It is by working together

We reduce Denmark’s CO2 emissions 24 – 25 CSR MISSION CSR REPORT 2013

that we will find the optimal solution for reaching the goal of a CO2-neutral Den- project in the Guangdong Province with one of the fuels, energy sources such as wind power are, by their very nature, difficult to con- need for stable high-speed Internet. The same applies mark. We are content that we are still experiencing positive dialogue with the world’s largest food processing companies. trol. For this reason, new mechanisms need to be integrated that will control the to the demand on smart solutions such as cloud host- local stakeholders, and that we are still receiving concrete offers from landowners. amount of energy that is consumed. We expect high-speed broadband to play a ing, flexible telephone solutions, and telecommuting. Lucrative energy solutions for everyone central role in ensuring this control. We are deeply grateful to the many members of ours SE Big Blue saves money while improving the company’s environmental At SE, we also offer alternative energy solutions to who contribute to strengthening the broadband roll- accounts small and medium-sized businesses, as well as to pri- Our future is in the smart grid out in their local communities. Our business unit, SE Big Blue, offers energy solutions to major Danish and foreign vate customers. We do this because they account for It is our ambition to be among the first in the world to develop, test, and service companies. When a company enters into a partnership agreement with strategic more than 50 % of the total Danish energy consump- the smart grid of the future. Among other things, we want to secure this ambition 2013 was a good year for Stofa consulting or concrete energy-efficiency initiatives, it will achieve visible savings on tion, because we believe that sustainable energy solu- through a series of initiatives, such as by establishing Next Step City in Esbjerg 2013 also saw excellent results for Stofa, and we are the bottom line while contributing positively to the CO2 accounts. The vision is to tions are for everyone, and because we are able to where smart-grid players from all over the world will be invited to participate in the pleased with a gross increase of 45,000 new broad- be the preferred business partner for major Danish and foreign corporations, mu- meet the rising interest among our customers with creation of a unique innovative environment. Some of our most skilled employees band customers. This large increase meant that Stofa nicipalities, and government institutions that wish to reduce their energy costs. competitive offers. are dedicated to developing and expanding the electricity grid to the new and ex- reached broadband customer number 200,000 in Oc- citing future. To ensure that the electricity grid is ready for the challenges ahead, tober. In comparison, in the summer of 2011 the num- In 2013, for example, we helped the Region of Southern Denmark to launch strate- We have put together a production portfolio for our we have conducted considerable detailed research of the capacity of the electrici- ber was only 135,000. At the end of the year, 204,000 gic energy planning, which will ensure that the region will reach its goal of reducing customers with renewable energy solutions such as ty grid and the customers’ patterns of consumption. homes enjoyed broadband from Stofa, equivalent to a CO2 emissions by 40 % by 2020. This effort will also extend into 2014. We have heat pumps, ground heat, and solar cells, all of which net growth of about 15,000 new customers in 2013. also experienced an exciting development in our partnership with Nykredit aimed can make a significant difference to energy consump- This analysis enables us to re-think our entire future strategy for SE Energy at reducing CO2 emissions by 65 % by 2020, and with an emphasis on contribut- tion; the environmental impact; and, last but not least, Grid so we can exploit even further the potential of the electricity grid, which In 2014, we look forward to merging our forces even ing to the transition to renewable energy while this transition benefits the bottom the money coffers. All told, in 2013 we sold energy so- has yet to be reached. further in a shared Stofa platform. This means that line as well. lutions with an effect of 1.3 million kWh. That is a re- This is in harmony with the overall strategy of making it highly attractive to convert our 65,000 private broadband customers will receive duction of nearly half compared to 2012. from fossil fuels to electricity-based technologies, such as heating pumps, elec- Ardagh Glass Holmegaard makes a difference – thanks to SE Big Blue tricity for ships that are at port, and combined heat and power plants that run on If Denmark is to transform its entire energy consumption to 100 % renewable energy This was caused not least because in 2012, the sales electricity. In 2014, the goal is to convert 50 million kWh, whereas for 2018, an in- by 2050, it is crucial that Danish businesses assume an active role in this effort. This of solar cells were through the roof – until November credible ambitious, yet feasible goal has been set at 1 billion kWh. is what glass producer Ardagh Glass Holmegaard – one of the world’s trend-setting 20, when the solar cell market came to an abrupt halt packaging manufacturers – is doing. In this case, SE Big Blue has helped implement as a new legal bill was presented to the Danish Parlia- High-speed broadband opens to a world of new opportunities and complete a very exciting project where surplus heat from the company’s glass ment. The new conditions have no doubt changed the There are many advantages to a strong digital infrastructure. In addition to the re- Number of production is used as heat in the district heating grid, and thus for heating primarily market. However, we are pleased that corporate cus- ally high number of customers who enjoy positive experiences – from IP phone broadband customers single-family homes in the local community of Fensmark on Zealand. tomers are increasingly beginning to request estimates services to Smart TV – the stable and lightning-fast high-speed broadband net- for new solar cell systems again. work will meet the many digital needs of the future. As an example, health-care With this energy-efficiency initiative, Ardagh Glass Holmegaard shows that good technology will be able to use high-speed broadband to save patients and hospi- 300.000 business and environmental considerations go hand in hand. The plant is achiev- A strong and smart network can provide tals alike from unnecessary transportation and expenses. 280.000 sustainable solutions for the future ing energy savings of 18,000 MWh per year, is reducing the impact on the sur- 260.000 rounding environment, and is even delivering surplus heat to local residents. We want to play an active role in converting the entire Another example is the corporate use of video conferencing in lieu of having to 240.000 energy system in Southern Jutland from fossil fuels to travel to traditional meetings. This saves payroll expenses, as well as many tons of 275.556 220.000 Record savings the modern, digital and sustainable energy system CO2 on transportation. A third major area is the educational system. All schools 200.000 It is our ambition that by the end of 2015, SE Big Blue will have reduced the overall known as the “smart grid”, a fundamental pillar of benefit from digitalization, and lecturers and specialists from all over the nation, Danish energy consumption by at least 800 GWh compared to 2011. That is equiv- which is high-speed broadband. and even the whole world, can step in and enhance the teaching experience. We 180.000 alent to a fourth of the electricity consumption in SE’s entire utility area. In 2013 we are convinced that high digital accessibility is a right that everyone is entitled to. 160.000 achieved savings of 199 million kWh, an increase of 64 % compared to 2012 when The intelligent energy system of the future is prerequi- 140.000 we achieved 121 million kWh. The goal was to save 190 million kWh, so even site to incorporating the vast amount of decentralized Many new satisfied customers – including corporate customers 120.000 though we set the goal high, we managed to exceed our ambitions. electricity production into the energy grid. This is nec- We are pleased that the high-speed solutions that we offer have been well re- 100.000 essary in order to reach society’s goal of being CO2 ceived among our customers. In 2013, we were able to welcome 20,000 new cus- 80.000 SE Big Blue can become even bigger neutral by 2050. As Europe’s most fiber-intensive re- tomers to SE’s broadband. This means that the number of customers increased 60.000 2013 also became the year when SE Big Blue took its first baby steps abroad. gion, it is still our ambition to become one of the first in by nearly 22 % in 2013 to a total of 73,000 customers. This is a clear sign that our With agreements pending in Poland, a potential new strong partner in Germany, the world to develop, test, and implement the smart members are embracing this opportunity, and that the strengthening of Denmark’s 40.000 and positive dialogues about exciting partnerships in China, we are looking at an energy grid of the future. most fiber-intensive region continues at a steady pace. By the end of 2013, we had 20.000 59.960 45.247 inspiring development where we, together with our strong partners, will solve tasks 65,000 private broadband customers, and we have made broadband available to 0 internationally without a high risk. In SE’s 2013 Annual Report, we go more in- This is because our energy system needs to be trans- 228,000 potential customers. The number of corporate customers who have cho- depth about our activities in Poland, our possibilities in Germany, and our survey- formed to better be able to handle wind power and sen SE’s high-speed broadband has risen from about 3,500 customers in 2012 to 2011 2012 2013 ing in China, including our discussions with China Southern Grid and a joint pilot other energy sources with wide variations. Unlike fossil nearly 5,000 in 2013; i.e., a growth of over 40 %. This is a sign of an increasing 26 – 27 CSR MISSION

Stofa reached broadband customer number 200,000 in the fall of 2013

Stofa’s powerful TV product, which means powerful products at a fair price, and We want to give something valuable back to the our members will be able to benefit from receiving broadband, TV, and phone members – and to society in general service from the same provider. We are placing our stakes on an intensive launch of fiber broadband in the region, on merging SE and Sto- We will continue to work on innovating and developing our product range. Among fa, and on investing in land-based windmills based on other things, this means that in the future, we will also offer mobile phone and mu- a desire to future-proof our region because it is cost- sic services; more information about this offer will become available during 2014. effective, and because it clearly contributes to strengthening our other activities. Placing our stakes Still the leading broadband region on windmills is both profitable and a natural part of According to the most recent broadband map created by the Danish Business creating a CO2 neutral Denmark. Authority, Southern Jutland is clearly once again the leading broadband region in Denmark. When comparing to the most recent broadband reports from the EU, Investing in Stofa creates stronger, more competitive we are also pleased that Southern Jutland still appears to be the most broadband products. Meanwhile, high-speed broadband ensures intensive region in Europe. stable and fast data connections that increasingly will make it possible to use remote teaching, video com- In Southern Jutland, over 76 % of all homes in outlying areas have access to fiber- munication, digital social services, telecommuting, etc. optic broadband, whereas Europe’s average is at merely 0.4 %. These are all solution that will erase geographical bar- riers while contributing to future-proofed well-being in A high-speed connection affects how attractive a residential area is. It affects the Denmark. local competitiveness, the number of local businesses, job opportunities, schools, etc. An American study reveals, among other things, that on average, a We want to give back to members, the region, and so- local community with fiber-optic broadband has an employment rate that is 4 % ciety, and to be able to use high-speed broadband to higher and an income that is DKK 25,000 higher than local communities without create the necessary platform where sustainability and fiber broadband. digitalization can grow.

Using digital solutions needs to become easier 03 28 – 29 TAKING THE LEAD AS A ROLE MODEL

LEADING AS A ROLEMODEL

SE’s values and rules of conduct are important motivational factors for everyone at SE. They are a natural part of the daily attitude with which we face each other and the outside world, and they are the foundation for what we call “the total customer experience”. Our values – openness, closeness, courage, and sustainability – enable us to vouch for our business and live up to our role as a promoter and provider of CSR measures.

Cutting our own CO2 emissions in half If anyone is to “walk the talk” in terms of CSR and sustainability, then of course it’s us. For this reason, we want to cut our own CO2 emissions in half by 2020 com- Baseline comparison 2012 and 2013 CO emissions in tons (excl. grid loss) pared to the total emissions of 8,863 tons of CO2 in 2011. This will particularly 2 happen as we reduce our own energy consumption and our own environmental impact. The goal includes electricity, heat, and fuel consumption for our buildings, 10,000 servers, transformer stations, and street lighting. Emissions derived from net loss – 9,000 kWh lost during transportation in the electricity grid – are not included in the goal. 8,000 Although SE continues to work intensively on reducing the net loss, a certain net 7,000 loss will be inevitable when electricity is transported through an electricity grid. It is

6,000 7,5 7 7 7,2 7 6 not unrealistic to set equally high percentage-based goals for this reduction. 5,000 4,000 The total emissions for 2013 were measured at 7,276 tons of CO2. This is a reduc- 3,000 tion of 302 tons of CO2 compared to 2012 and an 18 % reduction compared to 2,000 the starting point in 2011. These amounts do not include Stofa. Including Stofa, the 1,000 amount is 8,474 tons of CO2. Next year we are going to use this figure for compar- 500 ison. This means that we still need to achieve 2,845 tons in of CO2 savings to 0 reach our goal by 2020. See the table to the right. Here you will note that the share of CO2 per kWh is about 20 % compared to 2012, and that in 2013, we had a peri- 2012 2013 od with concurrent energy consumption in both new and old buildings, including our data center. Electricity consumption Electricity consumption in buildings ����������������� 1,776 in buildings ������������������ 2,492 Heat in buildings ������������ 235 Heat in buildings ������������� 319 Headquarters already making a difference Transformer stations ������848 Transformer stations �������881 One of the most important aspects in reaching our goal is to take a closer look at Street lights ���������������� 1,996 Street lights ���������������� 1,650 our buildings, which need to be more sustainable. Moving into our new headquar- SE vehicles, mobile and SE vehicles, mobile and stationary generators 2,722 stationary generators 1,934 ters, and installing solar cells on the roof in Sønderborg, was an important step in the right direction. The headquarters are a lighthouse where sustainability was Total tons of CO2 Total tons of CO2 conceived of right from the start. emissions ��������������� 7,5 7 7 emissions ��������������� 7,2 7 6

Where energy efficiency and aesthetics are part of a greater whole 30 – 31 TAKING THE LEAD AS A ROLE MODEL CSR REPORT 2013

utes to creating a work environment with optimal lighting, acoustics, and heat and nomical driving habits. We actively use fleet manage- air conditions, etc. Thanks to a series of measurements and calculations, we have ment tools to optimize logistics the best way possible. ensured an optimal and sustainable workplace, which means, among other things, During a two-year test period, SE employees were able to borrow en electric car for that all 420 work places have a daylight factor of 2.0. This means that we do not In the SE group, we have about 395 employees whose see a need for extra lighting in the work areas, and the lights are seldom on in job duties involve driving. This fleet includes 140 utility private use for three months. During the project, a total of 80 employees and their meeting rooms, even on rainy days. vehicles, which by nature are heavily loaded. Since families drove the cars 216,434 km. That is equivalent to 5.4 trips around the earth 2011, we have made a targeted effort to streamline and 16.2 tons in CO savings. We have also been focusing on other initiatives that promote sustainable conduct. these utility vehicles. 2 These include a standard setting for paper printing that supports reduced paper consumption, increased digitalization of all documents, and waste sorting. For Through 2013, we changed the structure of 64 vehi- example, it is impossible to find a waste paper basket by the desks. A shelf system cles, resulting in a total weight reduction of 4,800 kg. has been established in each department where the waste is sorted. Not only The goal is to change the structure for an additional 48 does this reduce the amount of waste; it promotes the understanding that every- utility vehicles in 2014 and the remaining 28 by 2015. one will support and promote opportunities for recycling. This means a total reduction of about 10,500 kg. Ac- cording to the Danish Transport Authority, a car uses Focusing on waste handling and wasted resources is a top priority in the cafeteria. up to 5 % more fuel for every 100 kg. With this, we are Among other things, the building is round since that is the most compact shape building since we moved in on June 17, 2013. This fig- There, all employees sort organic waste from regular waste before the items are looking at a significant reduction of our fuel consump- suitable for residential purposes and thus the most energy-efficient shape. In addi- ure does not include the countless tours conducted in placed on trays on a conveyor belt. From there, dish washing can take place with- tion and fewer CO2 emissions. tion, we also try continuously to make better use of the resources in the adminis- connection with external meetings and informal visits. out lifting. To minimize waste of resources, in addition to vacuum packing, our caf- tration; we are increasing the exploitation of digital solutions, and we are paying eteria features careful planning of healthy menus and food items and a daily take- Lithium batteries are another “weight-loss measure” close attention to how we can make our vehicle fleet more environmentally friendly. The great interest in the new headquarters is undoubt- out system where employees can buy and take home leftover food. that can be felt in our utility vehicles. It will reduce the Several of the initiatives that affected our reduction in 2013 are described in the edly caused by the fact that the energy-efficient head- vehicle weight by 75 kg. As an added bonus, the bat- subsequent sections. quarters represent new standards for blending aes- Furthermore, the sustainable administration receives plenty of help from several teries take less time to recharge and have a much thetics with common and green sense and innovation. new digital communication tools for holding web-based telephone and video con- longer useful life, a sustainable and cost-effective po- The Energy Plus Building – a sustainable lighthouse In 2013, this combination resulted in the building being ferences. This has streamlined our meeting activities, internally as well as external- tential that we are going to implement in 2014. In June of 2013, we opened up the doors to our ground-breaking headquarters in awarded Veidekke’s Scandinavian environmental ly. The work tool has strengthened the cross-disciplinary effort in the organization Esbjerg. With its unique architecture and impressive details and characteristics, it award and was declared the “Innovative Corporate and has particularly reduced the number of miles driven to and from meetings. In addition to all newly purchased vehicles being deliv- raises the bar for sustainable commercial building to new heights. The new head- Headquarters” of the year in Esbjerg Municipality. This, in part, ensures a smaller environmental impact and less wasted time in gen- ered with cruise control, in 2013 we also installed quarters are clearly Denmark’s most energy-efficient commercial building and one eral. Even though the communication tool Lync is just one of several tools, in 2013 cruise control in all service vehicles newer than 2009. of the five most energy-efficient ones in Europe. Our new headquarters are certi- A landmark in the energy metropolis of Esbjerg a total of 2,041 video conferences were held via Lync. The remaining 40 older vehicles will be replaced dur- fied as a passive house according to the strict German standards, and it meets all With SE’s headquarters, the energy capital of Esbjerg ing 2014 and 2015. Among other things, this will re- the energy requirements expected of new construction for 2020. has a new landmark, which also symbolically shows The headquarters inspire SE’s other locations duce the vehicle’s fuel consumption and thus reduce

what the city and the region are capable of in the area At SE’s new headquarters, we have created an optimal framework, which hence- CO2 emissions. With a solar-cell area of 1,942 – 1,187 m2 for the office building and 762 m2 for the of energy. The headquarters are an innovative combi- forth will stand as an example of optimization, energy efficiency, and a healthy warehouse building – we expect a solar-cell return of about 250,000 kWh per year. nation of many different energy-efficient solutions work environment for our other locations. With solar cells on the roof of the In 2011 we tightened our vehicle policy. This meant Thus, with its expected annual consumption of up to 247,000 kWh, the headquar- where effect, conduct, cost effectiveness, and sus- Sønderborg division, and with a similar cafeteria culture, we have taken a few baby that starting back then, all SE company vehicles were ters will produce more electricity than it will consume. In addition, there are heat tainability all combine to create good harmony in the steps, and we will now increasingly ensure a positive development at SE’s other required to be environment class A or B. pumps with 10 km of underground hoses and one of the world’s most energy-effi- final solution. An impressive number of details are in- locations. cient service centers in the basement, which generates surplus heat that is also cluded in the building – from its shape and compact- Borrowing an electric vehicle used for heating the building. Thus, the facility lives up to the “energy-plus build- ness to its high level of natural light; mechanic, energy- In 2013, SE focused on reducing the energy consumption in our transformer sta- In 2013, our employees had the opportunity to partici- ing” label. efficient ventilation; thermo-active structures; energy tions. As with SE’s headquarters, we have chosen to use heating pumps in our pate in Europe’s largest electric vehicle project, ‘Tes- storage; utilization of surplus heat; passive under- 170 largest transformer stations. We focused on turning down the heat after com- tenelbil.dk’, which is organized by CLEVER (read more Since the topping-out ceremony on August 24, 2012, a number of stakeholders, ground cooling; underground heating systems for opti- pleting a task, and we are looking into the potential of remotely adjusting the heat. in the section Partnering with Others). At Testenelbil. politicians, industry organizations, and customers have visited the headquarters. mized heat screens; and fine-meshed, internal fiber In 2013, the number of locations increased notably with the integration of Stofa, dk, the selected employees had the opportunity to

Among the politicians who have shown interest and toured the building are Connie network. Every detail contributes to the overall CO2 ac- which had already been focusing on ensuring energy efficient operations in its sys- borrow an electric vehicle for private use for three Hedegaard, EU Commissioner for Climate Action; Bjarne Corydon, Minister of Fi- counts, the daily work environment, and the continued tems, buildings, and vehicle fleet. In addition to that, waste management has been months. The test vehicles went on their last trips at the nance; Lars Løkke Rasmussen, former prime minister; Pia Olsen Dyhr, former min- development of smart energy systems. a special area of focus for several years. end of the year since we have now completed the two- ister of trade and investment; Bendt Bendtsen, former vice prime minister; and Bri- year test period. During the project, a total of 80 em- an Mikkelsen, former minister of economic and business affairs. A unique and sustainable workplace A shrinking vehicle fleet ployees and their families drove the cars 216,434 km. The unique building also establishes the framework for With a service area of approximately 7,000 km2 and customers and offices nation- That is equivalent to about 5.4 trips around the earth

The tour record indicates that by the end of the year, 1,810 guests had toured the a totally unique workplace. Every single detail contrib- wide, we generally encourage our employees to practice both defensive and eco- and 16.2 tons in CO2 savings. 04 32 – 33 COLLABORATION WITH OTHERS

COLLABORATION WITH OTHERS

We desire to bring the development of sustainability and digitalization to new levels while benefiting the community. To achieve this, we have entered into several strong partnerships. Only by actively working together with relevant players can we raise the develop-

ment of the solutions of the future. We focus on energy efficiency to develop the region and the country toward the CO2-free, digital society of the future. We want to do our part to strengthen Denmark’s position and competitiveness on the continuously growing international market.

We collaborate based on three focus areas: We have established a good and strong partnership with Denmark’s biggest pension provider, PFA Pension. Collaboration on development projects Together, we established SE Blue Renewables, through 01. To SE, this is about being involved in development projects that create which we have taken the lead in land-based wind ener- new products, competencies, and/or concepts. Action-oriented development pro- gy in Denmark. In addition, we also acquired SE Blue jects are worth far more than thousands of PowerPoint presentations and empty Equity, which has already invested in three promising purpose statements. By participating in projects, taking an active part, and sup- companies that are benefiting from the transition to porting development projects, we can develop new knowledge and impact the more energy-efficient and environmentally-friendly so- conduct of our customers and the surrounding community. Our current business lutions. The latter also includes Lind Invest and Danfoss partners and development projects include CLEVER, Next Step Citizen, Next Step as investors. In years past, SE and Danfoss have Challenge, and Project Zero. worked together in a number of strong development projects such as Project Zero, Lean Energy Cluster, Proactive supplier partnerships and Next Step Village. In many ways, Danfoss is an 02. Proactive supplier partnerships are to a great degree about challeng- ideal partner for SE. Among other things, it was the first ing the norms and developing new standards for what is possible. By establishing major company to choose employee broadband from proactive supplier partnerships, we can create growth, workplaces, and new solu- SE, a solution for more than 2,000 employees. tions. We have entered into several supplier provider partnerships with companies such as Trend, Cisco, HP, ALSO, and Danfoss. This is an area that we want to de- SE also enjoyed a good partnership with Cisco in 2013. velop and expand further. With the merger of Stofa and SE’s network – both of which are heavily represented in Internet services – it Partnerships that support and promote became necessary to build a new nationwide Super 03. sustainability and digitalization Core. This is simply the backbone in our network that In partnership with our industry, cluster, or alliance partners, we will support agen- ties the entire infrastructure together. Thus, with Cisco das aimed at lifting and promoting continued development of Denmark’s sustaina- we have managed to get the nation’s first 100 GB net- bility and digitalization. As an example, our current partners include SE Blue Equi- work. The new Super Core will begin to operate on a ty, the Region of Southern Denmark, the Danish Energy Association, the Confede- regular basis in the fall, and from the summer of 2014 ration of Danish Industry, Esbjerg Energy Capital, and Lean Energy Cluster. These all traffic is expected to drive through it. types of partnerships enable us to combine our agendas in the area of sustainabil- ity and digitalization with a commercially sound growth philosophy that leads to SE Blue Equity the creation of new workplaces and progress in general. Read more about several At SE Blue Equity, we have created a strong setup. of the aforementioned examples below: Together with investors and SE Blue Equity’s manage- ment team, we benefit from the transition to more ener- A high volume of development projects gy-efficient and environmentally-friendly solutions. SE In 2013, we worked with a large number of strong partners in development pro- Blue Equity is contributing with capital, knowledge, and jects. A crucial strategic strength in 2013 was our ability to attract long-term insti- networking to develop and create value in closer part- tutional capital that will contribute to developing our company. nership with management. This will benefit the compa-

Together we face the challenges, both today and in the future 34 – 35 COLLABORATION WITH OTHERS CSR REPORT 2013

CLEVER’s charging network consists of more than 150 publicly accessible charger stands, 102 of which are fast-charge stands. During 2014, the number of fast-charge stands are going to more than double.

nies Eltronic A/S, EMT Nordic A/S, and Roll-o-Matic A/S. SE Blue Equity’s partner- The results from Project Zero need to go out and be charger stands, 102 of which are fast-charge stands. During 2014, the number of al practitioners, we have developed a new system ships focus on the continued development of the company’s global competitive- implemented in all the municipalities in Southern Jut- fast-charge stands are going to more than double. where the resident is placed at the center of a series of ness. The goal is to create a platform for value growth in good and sound medium land. One way this is happening is that SE has entered tests. The tests indicate that the patients experienced to medium-large Danish companies, in part through active ownership and in part into a climate partnership with Esbjerg Municipality, as In addition, CLEVER is also behind Europe’s largest research project related to some recovery simply because they were able to re- through direct interaction between SE Blue Equity’s investors and the companies. well as with a number of educational institutions and electric vehicles – Testenelbil.dk – where 1,600 families are providing CLEVER with ceive professional advice in their own home. Not only other entities, about creating smart energy solutions. unique first-hand knowledge of the electric vehicle. The research project is sched- has the digital platform provided access to consultation Innovative solutions by Eltronic A/S We have already initiated strategic energy planning in uled for completion in May of 2014. The next step will then be to use the collected from the living room; it has also served as digital docu- Eltronic A/S is one of the three companies that SE Blue Equity began to partner the Region of Southern Denmark, which will ensure data. In 2013, we also offered SE’s employees the opportunity to participate in mentation for the illness. High-speed broadband plays with in 2013. For more than a decade, Eltronic has been working in the manufac- that the region reaches the stated goal of reducing Testenelbil.dk, and the electric vehicles and the charging stations at select SE an important role in this communication. turing industry with engineering, systems integration, and automation to improve CO2 emissions by 40 % by 2020. We believe that the locations are likewise from CLEVER. the competitiveness of its customers. Eltronic creates innovative solutions that give whole world can learn from the experiences that are Next Step Citizen makes students a lot smarter their customers greater productivity and a better bottom line. Since Danish work- created through Project Zero. We further believe that Regional partnership about the energy challenges of the future In partnership with Varde Municipality and Cisco, over places and companies need technological innovation and a strong developmental the project’s creative and financial solutions will pave SE is participating in a regional partnership with the Region of Southern Denmark the past year we have run a pilot program at the ability if they are to exist in the future, they greatly need Eltronic’s innovative solu- the way to faster, better, and more inexpensive solu- and Lean Energy Cluster about the energy system of the future. As part of the schools in Ansager, Tistrup, and Næsbjerg in Varde tions. We are convinced that by working with management and co-owners, we tions to a number of the world’s climate challenges. partnership, we will attempt to solve some of the energy challenges of the future. Municipality. These are public schools where acquiring can build up an impressive company and make its great growth potential flourish. We are doing this to strengthen and qualify the transition to a modern, digital and specialty teachers at the secondary school level has CLEVER — Denmark’s leading EV operator sustainable energy system in the region. We are also doing it to maintain and ex- been difficult. Since specialty teachers need a lot of Project Zero Both the previous climate commission and the current pand the region’s strong commercial and environmental position in the area. When time to commute from school to school and classes SE is one of the leading players behind Project Zero, which is carrying out a tar- government suggest that electric vehicles will play a the transition takes place as cost-effectively as possible, we are able to deliver are so small, it is often hard to create a fruitful partner- geted effort to make Sønderborg Municipality CO2 neutral by 2029. The municipal- crucial role in the smart, electricity-based energy sys- electricity at the lowest possible price to the customers. Furthermore, the initiative ship for the classes. SE has changed this by using ity is a full-scale pilot environment and at the top of its class internationally. There tem of the future. For this reason, we are accumulating is intended to support regional and national energy and environmental goals and streaming video. we continuously acquire knowledge to be used in the ongoing development of the important experience at CLEVER whose shareholders contribute to growth and new workplaces. solutions of the future. The project is about more than technology and innovation. include SE. CLEVER is Denmark’s leading EV operator We have delivered video conference equipment, thus It is about community involvement. In fact, it is the context that is crucial to turning and is in the process of growing and expanding the Next Step Citizen makes being sick a little easier enabling a teacher to teach at three different schools the energy system of the future into reality. market for charging and creating the infrastructure for With a digital central point, we have partnered with the international IT company Tri- at the same time. Supplemented with iPads, we are electric vehicles. The purpose is to establish Scandi- fork A/S to create the company Next Step Citizen A/S, which provides telemedicine able to offer optimal teaching while opening the op- The project is dependent upon a strong partnership between Sønderborg Munici- navia’s first nationwide public charging network for services to the public sector in Denmark. It is all about creating health-care solu- portunity to invite the whole world inside and use do- pality and the many private investors. It requires the courage to put into action the electric vehicles. This will create security for motorists tions that make daily living easier for patients and health-care personnel alike – and mestic and international guest lecturers without having initiatives that are needed to carry out the ambitious task. Like Bill Clinton pointed and ensure availability of charging stations nationwide. in this context, health-care technology can offer many benefits and savings. The to think about travel expenses or classroom sizes. The out during the 2012 CSR AWARDS, it is about having the courage to make ambi- An important step in that direction are partnership user-friendly solution is operated by a well-trained staff. Using a high-speed con- project is only feasible because we have high-speed tious goals, assuming the responsibility, and striving for CO2 neutrality. Project agreements with Dansk Supermarked and Shell, nection, they are able to assist the citizens, who experience greater security during broadband, and in all ways it is a project that supports Zero is well under way, and it has been met with great support from local resi- among others. This has led to fast-charge stations at treatment. In 2013 we started the project “Horsens at the Forefront of Health” in our core values. The project will run until 2016. Togeth- dents. For example, there is a growing interest in energy exploitation and in being all Bilka shopping centers, most Føtex supermarkets, partnership with Horsens Regional Hospital and Horsens Municipality. The goal is er with the Alexandra Institute in Aarhus, we are going environmentally friendly. We have been able to conclude that local citizens have and select Shell service stations. CLEVER’s charging to include 800 residents throughout the duration of the project, 400 of whom will to thoroughly study the project to research the effects disposed of a considerably higher amount of furnaces than elsewhere Denmark. network consists of more than 150 publicly accessible receive telemedicine. In close partnership with health centers, hospitals, and gener- of this type of teaching. 05 36 – 37 THE STRONGEST TEAM

THE STRONGEST TEAM

Creating a strong team is about creating a culture that establishes a healthy, spacious framework for each individual employee. At SE, we prioritize living our rules of conduct and values to the fullest, rather than focusing on red or black figures on the bottom line; we are convinced that a strong corporate culture with happy employees will result in a healthy business. It may sound idealistic, but it is really good business and the basis for the total customer experience. We strive for a healthy and attractive workplace with an emphasis on well-being and where employees are proud of where they work and enjoy coming to work.

We make a continuous effort to develop a unique, flexible corporate culture where Talent and skills development all employees can reach their full potential. We weigh qualifications rather than At SE, we wish to develop our employees so we can age, gender, and ethnic and geographical background; it is the individual’s quali- support our business goals and growth potential in the ties and skills that are the determining factor when, as a team, we create optimal best way possible. To develop the right competencies, work conditions and results. SE constantly offers our leaders and employees con- tinuing education. This takes place in the form of ex- Having said this, we wish to create an organization where diversity reflects the tended programs, intensive courses, e-learning, and society of which we are a part of, inspires our many employees, and gives access other continuing education offers. to a wide array of skills and qualities – and where great flexibility is reflected in our support and assistance of those who wish to retain their attachment to the In 2012 we established a model that will cover the tal- job market despite any potential challenges. In other words, at SE we provide ent among SE’s executive team in terms of continuing the strongest team by letting the right competencies develop and grow in the development. Although all SE employees are highly right place. skilled and contribute to SE as a whole, we have a tal- ent program aimed at a few select leaders. Competencies are the number-one priority Historically, there have always been more men in our industry. This has placed lim- Through targeted training programs, they achieve the its on how diverse the makeup of SE’s employees has been. For this reason, we are skills that will bring the company to the next level and pleased that 21 % of SE’s current leaders are women. It is a witness that the initial create profitability to everyone’s benefit. Leaders are image of SE – and, for that matter, our industry – is radically changing. With new selected based on leadership behavior, a 360-degree business areas, a strong customer focus, numerous career paths, and a clear com- evaluation, skills, how they get along on their team, munity profile, interest in SE has grown. We continue to receive more applicants for performance results, and their estimated potential. our job announcements, and applicants for our positions reflect our surrounding The talents are required to place SE’s needs above community to a greater degree. their own while going the extra mile required by the tal- ent program. We wish to create an organization with greater diversity. This includes an executive team with at least 30% women by 2018*. This won’t happen overnight, though, and In 2013, we held the first training programs where the we need to point out that we will continue to prioritize skills and qualities over pref- leaders were challenged professionally and personally. erences based on age, gender, or ethnic and geographical background. We believe In 2014, we will look into establishing additional talent that it is the individual’s contribution to the strongest team that creates a positive development programs across SE. work environment and the best results.

At SE we have fun while creating big results *) The goals for SE’s Board of Directors is 20 % by 2018, but we point out that the goal will be reached by democratic principles practiced by and among the Board members. We encourage nominating people for the Board who reflect the diversity of the members. 38 – 39 THE STRONGEST TEAM CSR REPORT 2013

A positive work environment with high job satisfaction surveys and sick leave – in the weekly whiteboard market. This may be in terms of physical or mental disabilities, lack of education, quences will be dealt with before they materialize. We wish to maintain and continue to develop our positive work environment, which meeting for SE managers. being of an ethnic minority, or because the employee has reached an age where allows employees to use and develop their skills. Employees need to thrive in their he or she is considering full or partial retirement. In 2013 we had one incident where an employee who work and get along well with co-workers and management, and there has to be Physical and mental work environment was working at a transformer station stuck his arm be- room for positive experiences during the workday. Working at SE needs to be fun We wish to maintain a positive physical and mental Our flex-job offer is primarily aimed at employees who, after many years of dedi- yond a warning sign to dry up an oil spill. The employ- and motivating within the framework of our rules of conduct. We continue to con- work environment, both during everyday operations as cated work for SE, are unable to work with the same energy as before, but who ee used his cell phone as a flashlight, causing an over- clude that our employees are happy to come to work, and that they are involved well as more formally in the work environment depart- still want to make an active effort. However, we also welcome new employees with voltage, and unfortunately he sustained a serious burn and engaged and not afraid to take on a responsibility. ments. We have always had, and will continue to have, special work-related challenges. on his arm. a goal of being a safe workplace. Thus, since the ac- In 2013, SE completed three job satisfaction surveys. The initial goal was to quisition of Stofa, we have chosen to continue the two In 2013, we entered into 3 new senior employee agreements, 4 new employees The employee was immediately admitted to the hospi- achieve an overall job satisfaction level of 75 % for each of the 16 statements in- well-functioning work environment departments and started flex jobs, and 5 were hired on a probationary basis. We have enjoyed great- tal to have his burn treated and was subsequently re- cluded in the survey. We will discontinue the survey once all the statements are have continued to market them through internal media. er benefit of internal movements between positions, as well as flexibility and adap- ferred to a psychologist. The case was handled inter- above the benchmark. If a team fails to meet the desired level, it is the manager’s tation in the existing positions. General, our experience is that a strong team is a nally in the work environment department, as well as responsibility to take the initiative to improve job satisfaction for the applicable area Throughout SE, we have seen an impressive use of team whose members help each other out – and that provides added internal lift. by the Danish Working Environment Authority. Both before the next survey. In 2013, the job satisfaction benchmark was raised from the work environment departments, both with regard concluded that the accident took place despite com- 80 % to 85 % for the statement that constitutes SE’s overall job satisfaction KPI – to the physical and the mental work environments. SE – a safe workplace pliance with all legal requirements at the transformer “Overall, I am very satisfied with my job” – which summarizes the overall job satis- The work environment representatives have experi- In the event that an employee was to have an accident or experience a close call station, and that modifying the precautionary meas- faction at SE. enced how they are the go-to co-worker when people while working, the case will be discussed in the work environment committee, ures will not create any value. want to change something. which will then examine whether the procedures and work conditions are optimal. With an average response of 85 %, 85 % of the employees responded that they In the future, the focus on workplace accidents will be strengthened internally, in- Because of the accident, we have chosen to strength- agreed or highly agreed with the statement. 2013 saw several mergers, including the one with Sto- cluding by weekly reporting during the group’s whiteboard meetings. In 2013 we en communication about precautionary measures to fa. For this reason, we chose to retain the safe, well- had 24 workplace accidents, 11 of which resulted in absence of more than one avoid a similar incident in the future. Meanwhile, we Combined job satisfaction survey to be used in the future known interface and structure. This is because merg- day. If an employee suffers a serious incident with potential psychological effects, are glad that our colleague is doing well considering At the beginning of the financial year, when Stofa became a part of the SE family, ers will always involve challenges for the physical as SE has an established procedure for quickly connecting the employee with a psy- the circumstances, except for deep regret and a seri- we were using two types of job satisfaction surveys in SE and Stofa. In 2014, we well as the mental work environment, so more than chologist for a consultation and a debriefing. This will ensure that potential conse- ous burn on his arm. intend to use a single combined job satisfaction survey. ever before, we need to be able to provide our employ- ees with the needed support. Stofa measures its job satisfaction once annually. They use an action-oriented tool. For this reason, the follow-up dialogue between the manager and the team is The overall high job satisfaction level, coupled with the weighted high. With a response rate of 96 %, in 2013 Stofa achieved a result of 76 low level of sick leaves, shows that we have a positive points, which is equivalent to a “high job satisfaction” rating. It represents an im- mental work environment despite the changes. provement compared to 73 points in 2012, thus far their best result. At Stofa, this was secured by focusing on preventive The survey is supplemented by a continuous workplace evaluation that ensures measures, among other things. In fact, all work envi- Latest job satisfaction surveys Job satisfaction, Stofa Number of employees focus on a good physical and mental work environment. Like the four preceding ronment representatives have been trained on the With positive responses for the statement Last 3 years in points End of period (ATP method) “Overall, I am very satisfied with my job” (in %) (70-79 points = “High job satisfaction”) years, the goal for 2013 was a total maximum annual sick leave of 3 %. We are mental work environment in particular to make them pleased that the sick-leave level for 2013 totaled 3.23 %, which is below the aver- better able to react to possible changes and take pre- age sick leave in the Region of Southern Denmark. ventive measures. 100 100 1.500 At the end of 2013, we created a sick-leave policy for SE, which was initially com- This fits well with the open and personal corporate cul- 90 90 1.350 municated via SE’s Intranet, workshops for managers and supervisors, and sever- ture that characterizes the entire SE group, and where 80 80 1.200 86,0 85,0 70 84,0 70 1.050

al department meetings. In 2014, we intended to share the policy with the newest we continuously have a frank dialogue about how the 76 73 1.227 members of the management team, implement the health policy throughout the company is developing and growing bigger. 60 60 69 900 SE group, and further disseminate the messages. 50 50 750 40 40 600

In 2014, we will look at a natural way of merging and 730 720 Among other things, the health policy includes a focus on healthy and nutritious combining our work environment departments and 30 30 450 20 20 300 diet, exercise and fitness opportunities, as well as courses where participants re- joint consultative committees. 10 10 150 ceive assistance in achieving a healthier lifestyle. Since job satisfaction and well- 0 0 0 being are closely related to the company’s results as a whole, sick leave and job We go the extra mile SE Stofa satisfaction surveys are included on SE’s Intranet, along with our other KPIs. In We want to actively support those who need a little ex- 2013, we also decided to include KPIs from HR – in addition to job satisfaction tra help and flexibility in staying in touch with the labor Feb. 2013 May 2013 Sep. 2013 2011 2012 2013 2011 2012 2013 06 40 – 41 INVOLVEMENT IN SOCIETY

INVOLVEMENT IN SOCIETY

We feel a great responsibility and a duty to ensure growth and development in our local community. At SE, we want to become involved in the society that we are a part of. We want to be present in our service area and show openness in our business and activities.

To SE, the fundamental philosophy is that we want to unite two mega trends: sus- tainability and digitalization. We do this to strengthen the local community while creating new business opportunities. We constantly ask ourselves big questions such as the following: What do we need to do to strengthen our competitive edge? How can we create and maintain jobs? What is needed to develop new skills and support cohesion? We are convinced that sustainability and digitalization will pro- vide many of the answers to these questions. For this reason, we often want to participate in solving issues and implementing some of the synergies that can en- sure that our local community is developed and benefits from the inherent possi- bilities.

SE to create a digital cooperative movement An important investment for our supply area has been the implementation of fiber- optic broadband; we are convinced that it will contribute to establishing a founda- tion for the necessary growth and development. Along with the investment in Sto- fa, we are able to delivery powerful high-speed solutions that are already creating competitive advantages for corporate clients in our region. Like Monday Morning Weekly Newsletter wrote in 2013:

“All over Southern Jutland, the fiber network is creating new jobs, growth, and ed- ucational opportunities in an area that is otherwise severely affected by its remote location.” AVAILABILITY OF FIBER BROADBAND Besides benefiting corporate life and providing employees with telecommuting op- portunities, we will also give individual families great new experiences on their digi- The Broadband Map, prepared by the Danish Business Authority in 2013. The colors clearly tal media. High-speed Internet also provides new access to public educational indicate that Southern Jutland is the leading and welfare services. These are services and opportunities that we are examining fiber-optic region in Denmark. and that we will continue to develop in the Next Step Citizen project.

According to the most recent broadband map prepared by the Danish Business Degree of coverage and postal codes Authority, Southern Jutland is the leading fiber-optic region in Denmark and the 80 til 100 % (162) EU. We have prioritized the important community responsibility of investing in the 60 til 80 % (92) launch of the best high-speed broadband solution in the form of fiber broadband 40 til 60 % (104) to our support base, thereby equipping our members with the potential for giga- 20 til 40 % (57) byte connections, which is going to become a fundamental basis for the digital 1 til 20 % (90) 0 til 1 % (81) and sustainable society of the future. Likewise, at present we can already offer a 150 mbps connection with Stofa’s coax broadband. This means that we are al- Source: Bredbåndskortlægningen, 2013 ready able to offer the speeds that are the government’s goals for 2020.

We want to give our customers more digital choices 42 – 43 INVOLVEMENT IN SOCIETY CSR REPORT 2013

Education is a cornerstone of the digital society The three-story building is home to about 100 science business initiatives, education, innovation, and support for sports teams. Since the hold the bicycle race, the SE Tour. During the weekend To a high degree, assuming community responsibility is also about sharing in the jobs and is already fully leased. Here you will find com- summer of 2012, we have sponsored EfB (soccer), SønderjyskE elite athletics club of August 30 to September 1, 220 cyclists completed responsibility for proper education of apprentices and high-school and university panies such as Trifork and Next Step Citizen. The lat- (hockey, soccer, and team handball), Ribe/Esbjerg men’s team handball, Team Es- a 500 km route to the benefit of Save the Children’s students, as well as being able to offer our fellow citizens internships aimed at dis- ter works with digital welfare services, primarily for the bjerg (women’s team handball), EfB (hockey), and Team Tønder (men’s team hand- activity clubs for at-risk children in Southern Jutland. covering the skills, etc., that are needed for a future job. public sector. Their core competencies are integrated ball). With a corporate yield in mind, a number of sponsorships have also been Over the course of those three days, the cyclists solutions that can work across platforms and solu- created in Stofa. In particular, these include a principal; sponsorship of AC Hors- passed through some of the most scenic and note- In recent years, and particularly in 2013, SE has expanded its staff significantly, tions. High-speed broadband creates possibilities for ens, but they also include a number of minor sponsorships in soccer, team hand- worthy areas in our region. The SE Tour collected a with the natural result that the number of educational spaces has followed suit. better integration, which is essential to really be able to ball, basketball, and hockey. whole DKK 608,139, which was donated in full to Save With our size and the opportunities that we can offer, we feel obligated to accept implement welfare technologies at a full scale. the Children’s activity clubs and summer camps. as many applicants as possible. Above all, however, we want to do things properly In addition, SE has established a regional support fund, which has disbursed DKK so we can always offer meaningful content with good prospects for the future. Europe’s largest entrepreneurship competition 400,000 annually since 2011. The fund is maintaining a level of DKK 1,000 to During the two years that the race has been in exist- This, of course, limits the number of spaces. Moreover, we have not set a fixed In partnership with the Region of Southern Denmark 20,000 per donation and is disbursed twice a year. The focus of this fund is to cre- ence, through Save the Children we have secured number of acceptances since it also depends on the areas where people apply. and Accelerace, in 2013 we chose to establish Eu- ate value in our local community and/or for the customer. For this reason, this fund DKK 1,131,138 for the region’s at-risk children. Accord- rope’s larges and most ambitious accelerator project supports athletics as well as culture and charities. The most recent criteria are to ing the Save the Children Denmark, more than 500 In 2013 we had 15 students/apprentices, 4 in corporate internships for re-educa- and competition for entrepreneurs, Next Step Chal- send an application to the applicant via www.se.dk, that the applicant and the ac- children receive assistance every year thanks to the tion, 6 university students in corporate internships, and 4 interns. We have 1 cor- lenge. As part of this, talents and start-ups from all tivity be related to our service area, and of course that the activity display ethical funds donated from the SE Tour. porate holders of PhDs, 7 student assistants, and 12 youth workers. In addition, over the world are competing to provide the best and values that SE can support. we are also making an intensive effort to offer a total, new, and strong array of most innovative solutions for energy and/or digitaliza- We have been pleased to follow several of the activi- training opportunities that support SE’s rules of conduct and strategic ambitions. tion. 130 companies chose to apply, 12 were selected, SE’s Board of Directors is working on developing this model. At the 2014 Board ties arranged by Save the Children’s activity clubs, and and 9 of them made it through the needle’s eye to a meeting, it will submit a proposal for a vote, the purpose being to establish a larger we are deeply grateful for the impressive support from Open and earnest dialogue with our surroundings three-month intensive event in Esbjerg where the par- growth fund that will distribute a greater million amount every year. If this model is sponsors, private donations, volunteers, and the par- At SE we have a lot on our minds and promote openness about our experiences, ticipants receive more than 200 business development adopted, it will include the support fund mentioned above. ticipating cyclists who have made this possible successes, mistakes, and challenges. We learn from our mistakes, and they can hours so the solutions can get the best developmental We look forward to holding the SE Tour again in 2014 provide value and contribute positively to the world around us. In 2013, we again opportunities possible. The winner can win up to DKK Incredible result from great support of the SE Tour when we again look forward to joining a charitable saw a great rise in the interest in SE and the unique culture and leadership style 2 million plus a stay at Next Step City. This opens the In 2013, in partnership with a number of regional sponsors, we were again able to purpose in the region. that we have. In Esbjerg alone, we see an average of eight new guests at the week- opportunity for creating new businesses and jobs in ly visual factory meeting. A list of tours of our new headquarters shows that we the area. What we want is to attract at least ten to fif- have had 1,810 guests tour the facilities since we moved in on June 17, 2013. This teen of the world’s most promising companies to the figure does not include the countless informal tours conducted in connection with area and to place Southern Jutland on the map as the external meetings. At this time, we have around 3,000 scheduled for tours in 2014. European region best capable of developing business- es that live on advanced digital infrastructure. We are very proud of the increasing interest in SE, and to us it is important – indeed, an absolute duty – to make ourselves available for presentations and Investing in our region speeches inside and outside our facilities. This allows us to live the cooperative We want to assume a significant business responsibili- spirit and inspire active decision-making; indeed, it is by meeting our surrounding ty in our local community and in the region where we community that we can gain a feel of, and insight into, current issues. It is about are from. Over the last five years, this commitment has Interns/students Trainees Student assistants Number, last 3 years Number, last 3 years Number, last 3 years welcoming, embracing, and at times provoking the norms – to inspire and be in- led to investments of nearly DKK 4.5 billion, particularly spired – so we can create a common understanding from which new possibilities in the form of fiber-optic broadband, remotely-read can develop and grow. meters, and underground placement of the electricity 20 20 20 grid. However, it may also have to do with culture light- 18 18 18 The business park is well under way houses, such as when we support the Wadden Sea 16 16 16

We have initiated the business park Next Step City, convinced that sustainability National Park. As a result of the large investment write- 14 14 16 14 15 and digitalization can contribute to growth and development in Esbjerg and South- offs, we did not pay any taxes in 2013, as reflected in 12 12 14 12 ern Denmark in general. The target group consists of development-oriented busi- the list published by the Danish Ministry of Taxation. 10 12 10 10 nesses that work in the area of energy and climate, as well as businesses that can However, we are approaching a level with a surplus in 8 8 8 7 6 7 6 6 profit from the digital possibilities of high-speed broadband. In this regard, SE the bottom line, which means that within a year we will 7 7 4 4 4 makes resources and infrastructure available to innovative companies that want to have to pay taxes. 2 2 2 carry out full-scale development projects. The vision is to attract more than 1,000 0 0 0 n/a science jobs, and the first initiatives were implemented in 2013. SE’s sponsorships At SE, we have organized our sponsorships based on In 2013, the first building covering about 2,500 m2 was erected and put into use. a strategy of supporting the regional development with 2011 2012 2013 2011 2012 2013 2011 2012 2013 GYMNASTS NEED BROADBAND, TOO In the summer of 2013, SE participated in holding the national competition in Esbjerg where, among other things, the 24,000 participants were able to enjoy unique Wi-Fi coverage and mobile up- loads, both delivered by SE. INDEPENDENT REVIEW STATEMENT

To the Executive Board of Syd Energi a.m.b.a. We have reviewed the social and environmental information in Syd Energi a.m.b.a.’s CSR report for the cal- endar year 2013. The company’s Management is responsible for the CSR report, including establishing data collection and registration procedures as well as internal control systems to help ensure reliable reporting.

Based on our review, our responsibility is to express a conclusion on the following quantitative social and environmental data for 2013 in the report: Energy savings, CO2 emissions, network losses, uptime and downtime, accidents, employee satisfaction, women in management, apprentice/student data, video con- ferencing, fines and sponsorships.

The work performed We planned and conducted our work in accordance with the International Standard on Auditing Engagement (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information, and additional requirements under Danish audit regulation to obtain limited assurance that the social and environ- mental data in the report are free of material misstatement, and that the information is presented in accordance with the applied reporting principles, stated on page 48 in the report. We have obtained limited assurance be- cause, compared to a reasonable assurance engagement, our work has been limited primarily to inquiries and interviews of company personnel as well as analytical procedures around registration and communication sys- FACTS tems, data and the underlying documentation.

In addition we have ensured that the report meets the requirements of the UN Global Compact Policy on Com- municating Progress, the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.0, and the Danish Financial Statements Act §99a and §99b.

We conducted our work at the Syd Energi head office in Esbjerg between November 2013 and 14 March 2014. We have not interviewed external stakeholders or reviewed any forward-looking statements, such as goals and expectations, nor individuals referenced in the report. Therefore we draw no conclusion from these statements.

Conclusion & TAB Based on our work, nothing has come to our attention that causes us to believe that the social and environ- mental information in the report contains any material misstatement and are not presented in accordance with the reporting practice described therein.

We confirm that the report meets the requirements of the UN Global Compact Communication on Progress as well as the Danish Financial Statements Act §99a and §99b, and that it is drawn up with the help of GRI >> Version 3.0. Copenhagen, 14 March 2014

LES Deloitte Statsautoriseret Revisionspartnerskab

Jørn Jepsen Helena Barton State Authorised Lead Reviewer Public Accountant 48 – 49 PACKAGING CSR REPORT 2013

REPORTING PRACTICE THE GROUP’S KEY FIGURES AND RATIOS Unless otherwise stated, the data covers the units included in the report.

Basis for data M = Measured The group’s key figures and ratios 2009 2010 2011 2012 2013 Indicator C = Calculated Calculation method TDKK TDKK TDKK TDKK TDKK

Key figures Net turnover 2,342,903 2,386,244 2,879,198 3,144,322 4,468,088 Financial principal figures C Principal figures are generated by the accounting principles Gross profit margin 290,512 545,114 684,664 767,845 1,279,983 described in SE’s 2013 Annual Report. In addition to the scope of this report, the data include the subsidiaries where SE has Personnel expenses 278,765 294,525 368,201 367,177 609.022 controlling interest; i.e., at least 50 % ownership. Subsidiaries not held for resale purposes in part or in whole are not included. EBITDA 19,063 250,589 316,463 400,668 670,961

Operating profit -918,467 -193,948 72,643 29,831 -27,506 Distribution, supply security M Outage and grid loss for the electricity grid is measured directly and grid loss, electricity grid using SE’s meters from Energinet.dk that are read remotely. The Profit/loss of equity interest -268,228 41,413 55,788 105,724 -24,504 net loss consists of the difference between total consumption on the electricity grid and the measured customer consumption. Net financials 29,837 -18,737 -28,545 -26,024 -71,742

Energy savings C Energy savings include the total energy savings that SE can Annual profit/loss -911,544 -125,184 48,261 106,289 -140,793

document through the engineering firm Enervision. Equity 9,172,869 9,021,866 9,025,808 9,087,870 9,093,519

Customers, coverage, C Data are generated in SE’s customer system based on area data Total shares 10,825,123 10,840,269 11,789,238 12,346,546 13,734,100 and fiber broadband from KMD and DM Partner A/S. Mapping of the availability of 100 mbps connections are performed by the Danish Ministry of Investments in property, plant, and equipment 661,450 477,888 694,426 1,046,697 1,573,436 Growth and Business. It covers the share of homes and busi- Net interest bearing debt 175,306 441,026 706,964 406,990 3,021,232 nesses that may potentially – with a modest digging effort – be eligible to receive Internet access through a given broadband connection.

CO2 emissions C CO2-emissions include scope 1 and 2 in the Greenhouse Gas Protocol (World Resource Institute) for those units and activities Ratios that are included in the report. Emissions derived from net loss Number of employees 592 592 720 730 1.227 are calculated separately. Consumption data for electricity, heat, Job satisfaction levels (%), SE - 87.7 85.5 85 85 and fuel are based on internal measurements and statements provided by utility companies and fuel companies. However, Job satisfaction levels (Points), Stofa - - 69 73 76 electricity consumption for transformer stations is indicated. Work accidents - 10 11 12 11 Conversion to CO2 is performed using the standard value factors of the Danish Energy Agency for fossil fuels and factors obtained Grid losses (%) - 5.1 5.3 5.2 5.5 from Energinet.dk and district heating plants for 2013. No green- house gases other than CO are included. The annual statement CO2-emissions, excl. grid losses (tons) - - 8,863 7,577 7,276 2 does not include Stofa. The combined level incl. Stofa is included Documented energy savings (mill. kWh) 21.9 101.2 114 61.3 11 and will be used as a basis for comparison next year. Return on equity (%) -9.5 -1.4 0.5 1.1 -1.6 Environmental profile, M The average weight reduction for service vehicles is calculated vehicles by weighing the vehicles before and after a lean review. Solvency ratio (%) 84.8 83.2 83.2 73.6 66.2

Personnel data C The number of employees at the end of 2013 according to the ATP method – including apprentices, secondary school students, flex job employees, and probationary employees – is calculated using SE’s salary system. Workplace accidents include regis- tered accidents with at least one day’s absence.

Job satisfaction M Job satisfaction surveys are conducted 3 times a year in the “old” SE department. The job satisfaction level is based on a weighted average of responses and can vary from 20 % to 100 %. At Stofa, a job satisfaction survey was conducted in partnership with Enova.

Stofa C Note that Stofa did not become a part of the SE group until Feb- ruary of 2013; thus, it has only been a part of SE for 11 months. 50 – 51 PACKAGING CSR REPORT 2013

GRI OVERVIEW

Indi- Indi- cator GRI designation Referral or reported indicator Page cator GRI designation Referral or reported indicator Page

1.1 Management's statement Strong cooperation creates opportunities and results 10-13 EC1 Directly economic value generated and distributed SE’s key figures 9 SE’s 2013 Annual Report 2.1 Name of organization Who Is SE? 17 EC2 Financial implications and other risks and opportunities for the organi- Improving Customers’ Sustainability and Digitalization 23-26 2.2 Primary brands, products, and/or services Who Is SE? 15 zation’s activities due to climate changes Collaboration with Others 2.3 Organization's operational structure Who Is SE? 15, 17 SE’s 2013 Annual Report 33-35 2.4 Location of organization headquarters SE’s key figures 9 EC8 Development and impact of infrastructure investments and services Involvement in Society 41 Who Is SE? 17 provided primarily for public benefit through commercial, in-kind or pro Legitimate and Responsible Business Practice 21 bono engagement Improving Customers’ the Sustainability and Digitaliza- 23-27 2.5 Countries where the organization operates In 2013, the vast majority of SE’s activities were per- 24 tionSE’s 2013 Annual Report formed in Denmark. However, climate partnership do involve foreign tasks do a minor extent. Section: Improv- EU6 Management approach to ensure and long-term electricity availability Legitimate and Responsible Business Practice 19-20 ing customers’ sustainability and digitalization and reliability 2.6 Ownership type and legal form SE’s 2013 Annual Report EU8 R&D activity and expenditure aimed at providing reliable electricity and Collaboration with Others 33-35 providing sustainable development Involvement in Society 41-42 2.7 Markets served (incl. geographic breakdown, sector served, Who Is SE? and types of customers/beneficiaries) EU12 Transmission and distribution losses as a percentage of the total energy Leading as a Role Model 29 2.8 Scale of the reporting organization: EN5 Energy saved due to conservation efficiency improvements Legitimate and Responsible Business Practice 23-24 - Number of employees SE’s key figures 9 Leading as a Role Model 29-31 - Net sales SE’s key figures 9 EN6 Initiatives to provide energy-efficient or renewable energy-based prod- Improving Customers’ Sustainability and Digitalization 23-26 - Total capitalization broken down in terms of debt and equity SE’s 2013 Annual Report ucts and services, and reductions in energy requirements as a result of - Quantity of products and services offered Who Is SE? 15-16 these initiatives 2.9 Significant changes during the reporting period regarding size, Establishment of SE Blue Renewables and purchase of EN16 Total direct and indirect greenhouse gas emissionsby weight Leading as a Role Model 29 structure, or ownership Stofa. SE’s 2013 Annual Report EN18 Initiatives for reducing greenhouse gas emissions and achieved Leading as a Role Model 29-31 2.10 Awards received in the reporting period 4 awards: The 2013 Environmental Award, Construction reductions of the Year in Esbjerg Municipality, winner of Waoo’s Cus- tomer Satisfaction Survey, and Leader of the Year 2013 EN28 Monetary value of significant fines and total number of non-monetary SE did not receive any such fines, nor did SE incur any sanctions for failure for non-compliance with environmental laws and sanctions during the reporting period EU3 Number of customers 'SE's Key Figures' and "Improving Customers’ 9, regulations Sustainability and Digitalization' 25-26 EN29 Significant environmental impact of transporting products and other Leading as a Role Model 29-31 EU4 Length of transmission and distribution lines by voltage SE's 2013 Annual Report goods and materials used for the organization’s operations, andtrans- 3.1 Reporting period The reporting period is January 1 - January 31, 2013 7 porting members of workforce 3.2 Date of most recent report Approved April 18, 2013 EU14 Programs and processes to ensure the availability of a skilledworkforce Who Is SE? 15-17 The Strongest Team 37-39 3.3 Reporting cycle Annual LA6 Total number of employees who are represented by bodies that assist The Strongest Team 38-39 3.4 Contact points for questions regarding this report or its contents Colophone located on back cover of report with management and counseling regarding work environment All of SE’s employees are covered and represented by 3.5 Process for defining report content About the Report 7 the work environment department, which works at the group level 3.6 Delimitation of the report About the Report 7 LA7 Rates of injury, occupational diseases, lost days and absenteeism, and The Strongest Team 39 3.7 State any specific limitations on the scope or delimitation of the report About the Report 7 total number of work-related fatalities by region SE’s 2013 Annual Report 3.8 Reporting basis for joint ventures, subsidiaries, leased facilities, out- About the Report 7 L A11 Programs for skills management and lifelong learning that support the The Strongest Team 37, 39 sourced operations, etc. continued employability of employees and assist them in managing 3.9 Data measurement techniques and bases for the data Reporting Practice 48 career endings 3.10 Explanation of the effect of any re-statements of information provided No significant adaptations LA12 Share of employees who regularly receive feedback on their perfor- 100% (All employees are offered a Employee Develop- in earlier reports mance, as well as career development coaching ment Interview) 3.11 Significant changes from previous reporting periods in the scope, Among other things, the merger with Stofa has resulted HR6 Activities identified asa having significant risk for incidents child labor, Legitimate and Responsible Business Practice 20-21 delimitation, or measuring methods applied in the report in the adaptation of several measurements, including and messures taken to contribute to the elimination of child labor SE is working at the base level in Denmark where the measurement of broadband, which now includes coax. risk is low. However, we are aware that we need to take In addition, we are also reporting on Stofa's traditional job further reservations considering the increase in activities satisfaction survey. abroad. Among other things, this means that we have placed additional focus on our Code of Conduct and the 3.12 Table identifying the location of the Standard Disclosures in the report This "GRI Overview" integration thereof. 4.1 SE's årsrapport 2013 SO8 Monetary value of significant fines and total number of non-monetary In connection with SE’s enthusiasm program, SE was 4.2 Indicate whether the chair of the highest governance body is also the This is not the case sanctions for non-coplience with the laws and regulations fined by the Danish Consumer Ombudsman; on certain CEO/an executive officer occasions, the program caused private parties to break the Danish Door Sales Act on behalf of SE. 4.3 State the number of members of the highest governance body that are All board members are independent independent and/or non-executive members EU25 Numbers of injuries and fatalities to the public involving company assets Legitimate and Responsible Business Practice 20 4.4 Mechanisms for cooperative owners and employees to provide Improving Customers’ Sustainability and Digitalization 26 EU26 Share of the population unserved in SE’s licensed distribution or 0 recommendations or direction to the highest governance body Involvement in Society service area SE’s 2013 Annual Report 43 EU29 Average power outage duration Legitimate and Responsible Business Practice (outage time) 19 4.14 List of stakeholder groups engaged in the organization About the Report 7 PR2 Number of incidents of non-complience with regulations and voluntary SE has not violated applicable laws and agreements for 4.15 Basis for identifying and selecting the stakeholders that are relevant to About the Report 7 codes conserning helth and safety impacts of products and services, product safety and health the organization by type of outcome PR5 Practices relating to customer satisfaction, including results of surveys SE’s 2013 Annual Report measuring customer satisfaction Edison Park 1, 6715 Esbjerg N, www.se.dk