What are the key issues facing E.ON UK and the wider energy industry?

Our industry is under more scrutiny today than it has ever been. The demand for our products is ever increasing because the developed world is wholly dependent on them. Yet in continuing to supply the gas and electricity that power our lives, we face a series of challenges that are not merely confined to our industry but are of global concern.

Challenges like climate change, security of supply, the nuclear debate and rising energy prices now dominate the political and media agenda not just in this country, but across Europe and beyond. These issues cannot be ignored.

Therefore, it is the four issues of energy supply, climate change, customer experience and our relationship with our employees that we consider the key issues for us and our stakeholders. They are all interrelated and have a direct bearing on how we respond to the wider industry issues.

How are these issues linked with CSR?

It is no exaggeration to say that the decisions we take today will determine the size of the UK's carbon footprint well into the second half of this century. They will be our legacy for future generations. So our investment decisions are crucial. They must enable us to fulfil society's energy needs in a way that is sustainable, that minimises our impact on the environment, is at a price both UK plc and the average customer can afford, and is economically sensible for our company.

To me, balancing these competing objectives is the essence of corporate social responsibility in its widest context, because if we get this wrong, all the other very important and valuable work that we do will pale into insignificance.

What can E.ON UK do to address these issues?

We are already involved in a number of initiatives at a strategic level, where we are a lead stakeholder in the Government's vision for a lower-carbon future. The carbon intensity of our power stations, the amount of carbon dioxide (CO₂) emitted for each unit of electricity generated, was more than 20% lower in 2005 than it was in the baseline year of 1990. We are aiming to reduce our carbon intensity by a further 10% compared with 2005. At a company level, we have set ourselves a target of reducing our own carbon emissions by 10% by the end of 2006 in our non-operational businesses.

One key area we are actively pursuing is the need to engage with our customers to help them become more energy efficient and to reduce the amount of power and gas that they use. Just under 30% of the CO₂ released into the UK's atmosphere comes from energy used in our homes. So if we can reduce that, it's a real win-win situation, because our customers will pay less for their energy and we will reduce the UK's carbon footprint.

Of course, the support and engagement of our employees is vital if we are to achieve any of these aims. We know the value of our people and show this by encouraging development, by recognising achievement and by looking after their wellbeing.

Besides the key issues detailed here, what else is E.ON UK doing with regard to CSR?

We are particularly proud of our community and employee involvement programmes where we invested over £2 million last year targeted at those groups in our communities where we can make a real difference. Last year, for example, our education programme was used in 3,200 schools nationwide, we tested 4,100 electric blankets for the elderly and we supported over 1,700 of our colleagues in volunteering projects. We will continue to focus our efforts on areas where we believe we can make a genuine difference.

Finally, your reporting this year marks a departure from your previous method of reporting on CSR. Can you explain what's changed?

This year we have produced a printed review which concentrates on four key issues that we believe are of greatest significance to our stakeholders because they cut through everything we do. We aim to manage all aspects of our social and environmental impacts and we provide details of all activities in this supporting online report.

This will also help us as we continue to develop and refine our reporting process to include more detailed targets and report on an increasing number of impact areas.