How sustainable is Stedin Group?

A sustainable, transparent and socially responsible organisation

Stedin is working to create a world filled with new energy for both our generation and future generations. We work hard every day to ensure everyone can access the grid. When it comes to helping the Netherlands become more sustainable, we are making a major contribution by increasing the pace of construction, and by making better use of our grid and managing it more effectively. 

We also believe that the way in which we accomplish this is important. We have broad ambitions in the area of sustainability: we aim to be a climate-neutral, circular, more diverse and more inclusive organisation, with a net-positive impact on biodiversity, in 2030. We also want to increase our positive impact in terms of our environmental objectives and minimise the negative impact of our business operations.

The way in which we intend to achieve this is laid down in our ESG strategy.

View the strategy here

ESG strategy

ESG stands for Environmental, Social and Governance. These are three pillars that Stedin must report on pursuant to European legislation. Details can be found in Stedin's ESG strategy. In that strategy, we have identified five themes. Those themes, together with the main objectives, are shown in the following figure. More ESG information is provided below.

Environment

Climate action is needed now. The earth is becoming warmer, and people all over the world are feeling the consequences. Biodiversity is under pressure, and the earth is being depleted due to the intensive use of natural resources. When it comes to making the Netherlands more sustainable, Stedin can have the greatest impact by carrying out our core tasks as quickly as possible. Sometimes, however, dilemmas arise. For example, the positive impact associated with speed might be at odds with a negative impact that our business operations have on the living environment. The difficult assessment that is required in that situation is made by us together with our colleagues and stakeholders. Our starting point is that the climate gains must always outweigh the climate impact of our business operations. 

Stedin’s promises:

  • Our own operations run on green energy.
  • We use circular materials wherever possible.
  • When it comes to energy and materials, we avoid waste as much as possible.
  • We increase nature on our land and assets.
  • Our assets are ready for the consequences of climate change, such as extreme rainfall and heat.

This is how we construct, utilise and manage in an environmentally friendly and sustainable way.

 

Stedin previously expressed its ambition to be climate neutral in 2030. Today we are no longer in favour of offsetting. It is unreliable, and the principle is debatable. That is why our new ambition focuses on reduction. Moreover, the emissions stemming from natural gas consumption by customers are also in scope, in accordance with the SBTi. We are reducing our CO2 emissions in line with the Paris Agreement, with the goal of achieving a 42% reduction in 2030, compared to 2021, for all three scopes of our carbon footprint. Given the impact on Stedin's operations this is even more ambitious, despite the fact that on paper our emissions will not reach 'net zero’ in 2030. Achieving ‘net zero’ is currently impossible for part of the footprint (for example, methane losses).
When it comes to circularity, Stedin focuses on the “front end” of the process, as this is where we can identify many opportunities to make sustainable choices. Examples include adjusting specifications to avoid undesirable materials, coming up with designs that require fewer materials, using sustainability as a criterion in the selection of products, and challenging suppliers to develop sustainable alternatives. Plenty of attention is being paid to cables and buildings, as these are areas in which a huge impact is possible.
The impact on biodiversity has four drivers: climate change, land usage, water pollution and soil pollution (including nitrogen). For Stedin, the impact on biodiversity in the chain (99%) is many times higher than the impact on biodiversity in the 79 hectares it owns (1%). Despite the fact we have a minimal impact on biodiversity in the areas of land we own, Stedin has a policy on newbuilds and management, which stems from our commitment to corporate social responsibility.

 

Social

Stedin aims to reflect the world in which we work, and this means we want our workforce to reflect the diversity within society. This is based on our deeply-held conviction that only diverse and inclusive organisations are healthy in the long run. We provide a workplace in which everyone can be themselves and feels they have space to continue to work on their development. We devote plenty of attention to long-term employability, and the social and physical safety of our employees is always of paramount importance.

Stedin’s promises:

  • We provide a workplace in which everyone can be themselves.
  • Safety in the workplace is always our top priority for our employees and everyone who works for or with us.
  • We do everything to support our employees’ growth and physical and mental health.

This is how we construct, utilize and manage in a safe and inclusive way.

 
The energy transition places huge demands on our employees, in terms of the work they carry out and the constant changes they have to deal with. That is why we are developing a robust development and learning climate in which employees will continue to work on their development in relation to the strategic challenges they will face, supported by a range of learning opportunities that reflect the skills required in future and meet the needs of our organisation and employees. This will ensure our employees and the organisation remain flexible.
Our employees will have to carry out a great deal of work in the next few years. This challenge will be accompanied by change. This will place high demands on our colleagues, both physically and mentally, and so it is important that employees are able to control their availability, and are actively supported in this by their manager and the organisation. We are making efforts to keep our absenteeism figures constant at the very least, and to move towards increased ownership. We focus on awareness and behaviour, because we believe that safe behaviour is essential for a safe and healthy working environment.
Stedin will be a diverse and inclusive organisation by 2030. We will accomplish this by recruiting and retaining a diverse workforce that reflects the world in which we live. In order to achieve this, attention needs to be paid to equal opportunities, equal treatment and long-term employability. In this context, we focus on our chain as well as our own employees.

Governance

Stedin works in a way that is ethical and transparent. We comply with legislation and regulations, which helps to build trust in the organisation. We also put necessary changes in legislation and regulations on the agenda, so that they continue to reflect our social task. We view the organisation as a long-term alliance of various stakeholders that can play multiple roles, such as that of shareholder, lawmaker, licensing authority, supplier and customer. When managing and supervising the business, we carefully weigh the interests of these stakeholders. 

Stedin also assumes responsibility for a sustainable and fair way of working. We want to avoid situations in which our solutions create problems in the Netherlands, or elsewhere in the world. Where possible, we endeavour to ease problems that already exist; this is a major condition for collaboration with chain partners. 

Stedin’s promises:

  • We are ethical and transparent, and we express this both within and outside our organisation.
  • We work with our stakeholders to create sustainable value for the long term. 
  • We assess the potential impact of activities in the chain as well as our influence over that impact. 
  • We make changes in those parts of the chain where we have an influence and can make an impact.
  • We involve customers and local residents in projects that have a major spatial impact.

This is how we construct, utilize and manage in an ethical, transparent and fair way.

 

 

Stedin’s main goal with respect to governance is to continue to comply with applicable legislation and regulations and with relevant standards of conduct in line with the established risk appetite. We maintain a sound integrity policy, which includes an integrity hotline, a whistleblower scheme and multiple confidential counsellors.
Stedin’s Executive Board is appointed by the Supervisory Board, whereas the Supervisory Board is appointed by the shareholders, which are public bodies. The Supervisory Board and the Internal Audit Department give independent advice and exercise supervision. The Executive Board and Supervisory Board are supported by the Administrative Affairs team. Stedin continues to adhere to the Dutch Corporate Governance Code on a voluntary basis.