Statement from the Chief Executive

There is clearly a strong emphasis on climate change in this review. How far does this issue influence your business agenda?
Climate change affects all of us. It is happening all around us, we can already see the effects and we need to act.
We also know that our industry is one of the causes and whereas 30 years ago we didn't understand the damage we were causing to our planet through carbon dioxide emissions, we now know better. Equally, we need to balance our concern for the environment with our customers' need for light, warmth and power - reconciling the need to reduce carbon dioxide emissions while providing a safe, secure and affordable supply of electricity is the big challenge facing us.
So for us, tackling climate change isn't something that's tacked onto our agenda - it's at the heart of our business and this is reflected strongly in this review. By that I mean we are adopting a radically different approach to energy, both how we make it and how our customers use it.
As regards climate change what are the specific issues facing the energy industry?
I think there are three key elements linked together. We need to secure reliable supplies of energy in a way that minimises our impact on the environment and at a cost that is acceptable to society. Put simply, it's about ceasing to be part of the problem and becoming part of the solution.
So we are taking our customers with us on our journey to change energy. The issue isn't just one of awareness, because over the past year, climate change has been so much in the news and on our TVs. It's also about engaging directly with our customers and showing how we can work together to make a real difference.
Encouraging our customers to waste less energy means they will pay less and will ultimately emit less carbon dioxide. But we shouldn't underestimate the size of this task. We know the decisions we take today are going to impact customers and the environment for the next 40-50 years, but that's a very difficult message to get across to a society that is increasingly energy dependent.
What can E.ON UK itself do to minimise its impact on the environment?
We are taking the lead both in reducing our Company's carbon footprint and helping our customers to do the same. So we're working hard to change energy on a number of fronts - the way we make it, the way we as a company and our employees use it, and the way our customers perceive and use it.
In terms of the way we make energy, we are already investing heavily in low-carbon energy solutions, such as renewables and efficient gas-fired generation and we have announced a number of new build projects that will eventually help replace our ageing coal-fired power stations. We are the only energy company to make a definite commitment to reducing the carbon intensity of our generation - our aim is a 10% reduction by 2012. This builds on the existing achievement of reducing carbon intensity by 20% since 1990.
Internally, we are taking action to be more efficient in our energy usage and we have already committed to a significant reduction in the carbon dioxide emissions resulting from our business activities other than from electricity generation. We are actively encouraging our employees to be more energy conscious and we've appointed low-carbon champions across each of our businesses.
For our customers, we are developing a range of products and services that help them make the most of the energy they buy from us. Two areas we are exploring, for example, are micro-generation and 'smart metering', and we are preparing a number of solutions for home and business.
How much emphasis do you place on research and development?
It is vital. If we are truly to change the face of energy, we must be innovative and E.ON UK is at the forefront in developing new technology solutions. We are one of the few energy companies with its own in-house R&D facilities and we are also involved with a number of the UK's leading research institutions such as the Energy Technology Institute. Through our parent company, we also have access to the latest R&D developments across Europe, including the E.ON Energy Institute.
Does your focus on climate change mean you are cutting back on other areas of CSR?
We recognise that our business impacts on society in a variety of ways other than climate. We have active programmes addressing, among other issues, fuel poverty and ethical procurement. What is more, we are actively engaging with all our stakeholders to assess these impacts and find ways to ensure we manage them more effectively.
