Corporate
responsibility
September 2013
Investor Relations | National Grid
Investing for the future
National Grid plays a vital role in meeting the challenge of
delivering safe, reliable and secure energy as part of a
sustainable, decarbonised and affordable future.
To ensure we achieve this challenge in the UK National Grid
will invest around £3bn p.a. over the next 8 years. The majority
of this spend falls into UK Transmission – rewiring the country
to support:
® UK Climate Change Act 2008 – to achieve an 80% reduction
of 1990 greenhouse gas levels by 2050
® Renewable Energy Directive 2009 – to achieve 15% of energy
consumption from renewable sources by 2020
® Connection of new generation fleet
® Increased demand for energy
® Security of supply
Connecting for tomorrow
® Our approach focuses on three areas that directly contribute
to our strategic priorities. They balance our responsibility to
connecting everyone to the energy they use today, with the
need to create sustainable energy solutions that underpin a
successful society tomorrow.
® We get involved with the things that matter to our
stakeholders and to society; inspiring, preserving and
designing for the future so that energy continues to play its
crucial role in all our lives.
Corporate governance
® Fully compliant with the provisions of the UK Corporate
Governance Code 2010 (the code) and additionally, the new
edition of the UK Corporate Governance Code 2012 (the new
code)
® Director remuneration set by independent Non-executive
Directors via Remuneration Committee. Significant
proportions of total reward of performance based
® 50% of Director bonuses are deferred into National Grid
shares, which are held in trust for 3 years – the Chief
Executive is required to build up and retain a shareholding
representing at least 200% of annual salary, and other
Executive Directors are required to hold 125%
Connecting today
Employees
Connecting today
Employees
® Our Employee Engagement Index was 63% in 2012/13,
® Invested around £15m in support of community initiatives
compared with 66% in 2011/12
® 13.8% of our workforce are black or minority ethnic,
compared with 13.4% in 2011/12
® 22.7% of our workforce are female compared with 21.8% last
year
® The Times Top 50 Employers for Women for eighth year in a
row
® Over 1.1 million learner hours of training across our UK and
US businesses
® Around 94% of employees at 31 March 2013 working to
certified ISO 14001 environmental management systems
and relationships across our operations. Direct donations to
charitable organisations amounted to around £1.9m,
compared with £4m in 2011/12
® Launched a UK-wide conversation about the challenges we
face in delivering the energy infrastructure the country needs
and minimising the impacts on communities and the
environment
® Engaged with around 350,000 members of the UK public and
shared information on our large transmission projects
® Our employees volunteered in their communities, giving their
time, skills and enthusiasm to support a wide range of
projects including supporting our various partner charities
Corporate responsibility
Summary of our performance
Doing the right thing
Business ethics
2012/13
2011/12
2010/11
Target
19.5
13.3
13.9
–
69
70
#
–
Employees (number)
0
0
0
Zero
Contractors (number)
0
1
0
Zero
Public (number)
0
2
0
Zero
Substantiated breaches of codes of conduct (per 1,000 employees)
Employee survey respondents who considered something would be done
if they reported an inappropriate business practice or an ethical issue (%)
Embedding safety
and wellbeing into
the way we work
Fatalities
Injuries
96
92
96
Zero
0.17
0.18
0.18
Zero
Contractor lost time injuries (number)
41
52
51
Zero
Injuries to members of the public (excluding fatalities)
22
37
52
Zero
~
2.85
2.82
Zero
Employee lost time injuries (number)
Employee lost time injury frequency rate (per 100,000 hours worked)
Safeguarding the
environment for
future generations
Health
Employee sickness rate (%)
Greenhouse gas
emissions
Scope 1 and 2 emissions (million tonnes CO2 equivalent)
8.2
8.7
9.7
–
Emission intensity (tonnes per £million of revenue)
569
630
675
–
Percentage reduction against baseline (% of scope 1 and 2 emissions)
58
55
51
–
Carbon dioxide (CO2) (% of scope 1 and 2 emissions)
52
54
56
45% by 2020
Methane (CH4) (% of scope 1 and 2 emissions)
43
41
40
–
Sulphur hexafluoride (SF6) (% of scope 1 and 2 emissions)
4
4
3
–
Other Kyoto gases (N2O, HFC, PFC) (% of scope 1 and 2 emissions)
1
1
1
–
31.3*
37.2
37.5
–
14.4
15.2
15.8
–
SF6 leakage as percentage of inventory (%)
1.8
2.0
2.2
–
Sulphur oxides (SOx) (tonnes)
896
1,339
2,167
–
3,022
3,159
4,232
–
Total water consumed (million cubic metres)
1.4
2.7
2.3
–
Consumption intensity (cubic metres per £million of revenue)†
100
197
162
–
1,448
1,632
1,556
–
Total waste (million tonnes)
1.1
1.9
1.7
–
Intensity (tonnes per £million of revenue)
70
136
118
–
Recycled/reused (%)
88
73
74
–
To landfill (%)
12
27
26
–
Gas used (million MWh)
1.8
2.9
2.9
–
Electricity used (million MWh)
0.6
0.6
0.6
–
47.6
42.8
44.8
–
14
13
9
Zero
Scope 3 emissions (million tonnes CO2 equivalent)
Other emissions to air
SF6 leaked to atmosphere (tonnes)
Nitrogen oxides (NOx) (tonnes)
Water
Water used for cooling and returned to source (million cubic metres)†
Waste
Energy‡
Fuel used for transport (million litres)
Significant
environmental
incidents
Own fault (number)
Third party (number)
3
4
0
Zero
Employees working to certified ISO 14001 EMS (%)
94
91
94
–
Employee Engagement Index (%)
63
66
#
–
Hours of professional and technical training (million hours)
1.13
1.05
1.08
–
Training hours per employee
44.6
40.1
38.9
–
Working with communities Community investment
Total community investment (£million)
15.0
15.6
12.9
–
Building
strong
partnerships
Customer service
Gas Distribution – customer service (quartile ranking)
3rd quartile
3rd quartile
4th quartile
To improve
Network reliability
Electricity Transmission – network reliability: Electricity delivered by the
electricity transmission system as a proportion of electricity demanded (%)
99.99999
99.999999
99.9999
99.9999 in 2013/14
100
100
100
100 in 2013/14
99.999
99.999
99.999
99.999 in 2013/14
Gas Distribution – residential customer service (quartile ranking)
3rd quartile
3rd quartile
2nd quartile
To improve
Gas Distribution – commercial customer service (quartile ranking)
4nd quartile
3rd quartile
4th quartile
To improve
Electricity Distn & Gen – residential customer service (quartile ranking)
3rd quartile
3rd quartile
3rd quartile
To improve
Electricity Distn & Gen – commercial customer service (quartile ranking)
3rd quartile
2nd quartile
2nd quartile
To improve
346
558
414
–
105^
121
123
–
Valuing an inclusive,
diverse and talented
workforce
UK
Employee engagement
and development
Gas Transmission – network reliability: Gas delivered by gas
transmission system as a proportion of gas demanded (%)
Gas Distribution – network reliability: Proportion of total customer
days without unplanned gas interruptions (%)
US
Customer service
Network reliability
Electricity Transmission – network reliability: Number of MWh lost (MWh)
Electricity Distribution – network reliability: Average time the average
customer is without power over the year (mins)
Key
–
#
†
‡
~
*
^
One of our key performance indicators (KPIs)
Incomplete or no data
We did not conduct an employee survey in 2011
Restated to correct over-reporting of around 0.7mcm p.a. in 2009/10 ans 2010/11
Excludes gas and fuel oil used by generating facilities
Unable to report 2012/13 performance due to back office system issue
2012/13 excludes electricity transmission line losses as a scope 3 emission. Now reclassified as scope 2
Excludes New Hampshire which was sold during 2012/13
Further information
John Dawson
Director of Investor Relations
T +44 (0)20 7004 3170
M +44 (0)7810 831944
[email protected]
Andy Mead
Senior Investor Relations Officer
T +44 (0)20 7004 3166
M +44 (0)7752 890787
[email protected]
Caroline Dawson
Investor Relations Advisor
T +44 (0)20 7004 3169
M +44 (0)7789 273241
[email protected]
George Laskaris
US Investor Relations Director
T +1 718 403 2526
M +1 917 375 0989
[email protected]
Tom Hull
Investor Relations Officer
T +44 (0)20 7004 3172
M +44 (0)7890 534833
[email protected]
National Grid plc
1 –3 Strand
London WC2N 5EH
United Kingdom
www.nationalgrid.com
@nationalgridIR