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Reducing our environmental impact

Caring for the environment

30%

reduction

We´ve shown a 30% reduction in energy consumption in our sites where we switched off lights and computers overnight.

We have been researching our supply chain carbon footprint and work on this will follow in 2008.

A responsible approach

Responsible environmental management is a core value, which is why we have set ourselves the target of reducing our carbon emissions by 10% per employee year on year. We noticed very quickly that in the sites where we switched off lights and computers overnight, we reduced our energy consumption by a staggering 30%.

Managing our environmental impact

The nature of our business means that we have an impact on the environment. Our aim is to manage and to minimise this impact.

Our Environmental Policy sets out our commitments to environmental protection and is reviewed annually. The Policy is supported by a set of minimum standards and guidance notes to help each part of our business comply with the policy objectives. We also have a specific policy for biodiversity to reflect our commitment to protecting vulnerable habitats and species.

Our Environmental Policy requires that each area of the business that has the potential to pose significant environmental risks is covered by an Environmental Management System (EMS). Our EMSs are developed to meet the international standard ISO 14001.

Environmental Policy and Management Targets

2007 Target Business Units 2007 Performance
Maintain ISO 14001 standard EMSs Central Networks Achieved. No Major non-conformaties
Establish EMS Retail Aspects and Impacts mapped and foundation of EMS developed
Maintain ISO 14001 standard EMSs Energy Services Achieved. No Major non-conformaties
Maintain ISO 14001 standard EMSs (sites) Generation Achieved
Establish business unit-wide EMS framework Generation Central Operations Group EMS established. Business unit restructure resulted in change of scope
Renew ISO 14001 certification to 2004 standard Corporate Environment Achieved. No major non-conformaties
2008/9 Target Business Units Long-term target
Maintain ISO 14001 (or appropriate) standard EMSs Central Networks Maintain ISO 14001 (or appropriate) standard EMSs
Implement EMS across all areas with significant risks and achieve ISO 14001 certification Retail Achieve and maintain ISO 14001 certification across entire Retail business
Full ISO 14001 certification of ES Support Function and New Connections Energy Services Maintain ISO 14001 (or appropriate) standard EMSs
Maintain ISO 14001 (or appropriate) standard EMSs Generation Maintain ISO 14001 (or appropriate) standard EMSs
Establish Generation wide EMS Generation Maintain EMS framework
Develop E.ON UK EMS framework Corporate Environment Maintain EMS to ISO 14001 (or equivalent) standard and implement EMS framework to ensure 100% EMS coverage for E.ON UK

The environmental impact of our purchasing operations is another area we have been researching and this will continue during 2008. Environmental concerns are also a key element of the due diligence process we apply to all potential acquisitions. If we're not satisfied with some or all of the answers, we investigate further before making an investment decision and any acquired asset is required to comply with the E.ON UK Environmental Policy.

As an operator of power stations and an electricity distribution network, environmental concerns are critical, but despite our best efforts, sometimes incidents can occur that have the potential to impact on the environment. We respond to all such incidents, however small, and, where appropriate, they are reported to the Environment Agency as soon as possible. For example, a small percentage of the high voltage electricity cables on our distribution system are insulated using fluid. Last year there were 11 incidents involving leakages from our cables and, in each case, we worked with our specialist emergency response contractor and the Environment Agency to mitigate any potential adverse effects.

We also monitor any environmental complaints received from stakeholders. The total number of complaints fell slightly from 234 in 2006 to 231 in 2007. Most of these were relatively small impacts of our distribution business and all such complaints are managed through a specialist customer liaison team, which keeps in regular contact with the customer until the issue is resolved.

Environmental Complaints and Incidents

Environmental Complaints (numbers)
2005 2006 2007
166 234 231
Environmental Incidents
2005 2006 2007
35 50 26

We have implemented an environmental incident reporting and investigation process for our distribution operations and a common reporting system is now in place across all of our operations. We have a number of processes to evaluate our compliance with the legal requirements relating to our environmental responsibilities. These include regular safety, health and environment (SHE) site inspections, environmental management system audits and incident investigations. During 2007, we were not subject to any environmental prosecutions and the total number of incidents reported under our environment policy fell by nearly half.


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