Measures and resources in relation to climate change

We are implementing measures to achieve our climate goals.^{(ESRS E1-3 par. 26)} Unless otherwise specified, these measures apply to Enexis Groep as a whole. ^{(ESRS 2 MDR-A 68b)}

To achieve the climate mitigation goals, ^{(ESRS E1-3 par. 26 en ESRS 2 MDR-A par 68a)} we are taking some additional measures in addition to the existing measures: ^{(ESRS E1-3 par. 29)  Deze tabel ondervangt de volgende DR’s: ESRS 2 MDR-A par 68a /  ESRS 2 MDR-A par 68c /  ESRS 2 MDR-A par 68d /  ESRS 2 MDR-A par 69a / ESRS 2 MDR-A par 69b (vanaf 2025) /  ESRS 2 MDR-A par 69c /  ESRS E1-1 par 16b /  ESRS E1-1 par 16c /  ESRS E1-3 par 28 / ESRS E1-3 par 29a /  ESRS E1-3 par 29b /  ESRS 1-4 par 34a / ESRS 1-4 par 34b /  ESRS 1-4 par 34f}

Explanatory notes:

• None of the measures in the table are nature-based solutions, that is, solutions that use nature to solve multiple problems and improve nature at the same time. 

• The measures do not require any changes to our products and services and do not require any new technologies in our organisation or in the upstream and/or downstream value chains. ^{(ESRS E1-1 par. 16b)} 

• We use the market-based method to set scope 2 emission reduction targets.^{(ESRS E1-4 par. AR 24).} In developing these targets, we only consider the climate scenario of global warming of up to 1.5 degrees Celsius. ^{(ESRS E1-4 par AR30c).}

• As the baseline year is 2024, we cannot yet report on actual GHG emission reductions, only on expected reductions for each measure. ^{(ESRS E1-1 par. 16c en E1-3 par. 29a, 29b).}

• These measures require significant investment (see table). We are financing these investments partly with equity but mainly through external financing. How we expect to meet our future financing needs is explained in our financing policy, which is outlined in below sections of note 30 to the consolidated financial statements. ^{(ESRS E1-1 par. 16c en ESRS 2 MDR-A 69a en c; E1-3 AR 21)}

• • General financing policy

  • Borrowed capital

  • Liquidity risk and contractual term analysis

  • Capital management

  • Group funding

• The significant CapEx and OpEx requirements will be reflected in the following notes to the consolidated financial statements^{(ESRS E1-3 par. 29ci, ESRS E2 MDR-A par 69b)}:

• • Note 2 Costs of transmission services and distribution losses

  • Note 7 Other operating expenses

  • Note 12 Property, plant and equipment

  • Note 14  Right-of-use assets

• The EU Taxonomy (see also 1.6) defines which economic activities are sustainable (Taxonomy-aligned). The proposed measures do not fall under this category. Measures for gas grid leakages are also not Taxonomy-eligible, meaning they do not meet the EU criteria for sustainable investments. The measures related to mobility are eligible but not aligned, as there is insufficient information available to assess the technical screening criteria. ^{(ESRS E1-1 par. 16c en ESRS E1-1 par. 16e en E1-3 par 29cii en iii).}We depend on suppliers for this and will continue to request information from them so we can assess the technical screening criteria in the future.

Below is an explanation of the above and other climate change mitigation measures.

Measures for electricity grid losses

With the electrification of households and businesses, we will distribute more electricity, which will also increase grid losses. We will continue to minimise these losses by purchasing the right materials and buying green electricity for our grid losses, ensuring they do not negatively impact our net footprint. This measure is ongoing. ^{(ESRS 2 MDR-A par 68a, 68c)}

Measures for gas leakage losses

We aim to reduce gas leakage losses, not only to lower our emissions but also to ensure public and employee safety. Starting in 2025, in line with EU legislation, we will increase the frequency of gas leakage inspections and replace leakage-prone pipelines. By 2030, we will accelerate the replacement of low-pressure steel gas pipelines. The financial impact of these measures is detailed in the table. ^{(ESRS 2 MDR-A par 68a, 68c, 68e, 69)}

Measures for mobility 

In 2025, we will limit the lease options for employees to 100% electric passenger cars. From 2025 onward, the electricity consumption of lease and service vehicles will be sourced entirely from green energy. The financial impact of this measure is shown in the table. ^{(ESRS 2 MDR-A par 68a, 68c, 68e, 69)}

Measures for the expansion of the electricity grid

In the coming years, we will invest heavily in the maintenance and management of the current infrastructure (see S4 - consumers and end-users). We will scale up significantly and add as much infrastructure as possible. This measure is ongoing ^{(ESRS 2 MDR-A par 68c)} involves significant operational and capital expenditure (see Metrics and targets). ^{(ESRS 2 MDR-A par 69)}

Measures related to sulphur hexafluoride (SF₆)

From 1 January onwards, we only intend to install SF₆-free switchgear, ^{(ESRS 2 MDR-A par 68c)} unless construction constraints prevent this. We will not accelerate the replacement of existing SF₆-containing installations because the CO₂ impact is minimal, the costs are high and we need the limited personnel capacity to support the energy transition. ^{(ESRS 2 MDR-A par 68a, 68c, 68e, 69)}

Measures for climate adaptation, energy efficiency and renewable energy

No additional policy measures are needed in the area of climate change adaptation. ^{(ESRS E1-3 par. 26 en ESRS 2 MDR-A par 68a)} This is because the likelihood of flooding in our operating area is low and losses from recent floods have been limited. We consider the residual risk acceptable for now and monitor it through our Risk and Opportunity Based Asset Management (ROBAM) system. This involves regularly assessing and weighing assets, risks and opportunities to invest and maintain them effectively.

The policy described above outlines our energy efficiency and renewable energy measures. There are no additional action plans.

Metrics and targets to reduce greenhouse gas emissions

We have set the following targets for scopes 1 and 2: ^{(ESRS E1-4 par 34)}

• Our greenhouse gas emissions will be 25% lower in 2030 than in 2024.

• We will be carbon neutral (our net footprint will be zero):

• • 100% of the electricity we purchase will be green, and 55% of this will be generated in the Netherlands in 2030. We will adhere to the Dutch climate targets.

  • We offset what we cannot buy green by investing in solid, CO₂-eq projects that also contribute to the sustainable development of local communities.

The above is based on a linear reduction from 2024 towards 2050. ^{(ESRS E1-1 par. 16a en ESRS E1-4 par 34e)}Assuming a base year of 2024, we propose a total reduction of 25% by 2030 across scopes 1 and 2. There is no sectoral decarbonisation pathway. In setting the targets (including the allocation of financial resources), we have taken into account the sustainability improvements we have already achieved up to 2024, as well as the expected growth of the organisation as a whole. No separate assurance engagement has been provided on these targets. ^{(ESRS E1-4 par 33 en 34e)}

We expect to set a 2030 target for scope 3 emissions (including commuting, capital goods (network components), purchased goods and services from suppliers, and processing company waste) in 2025. ^{(ESRS E1-1 par. 16a)}   We do not have a 2050 target for our scope 1 and 2 emissions. Most of our remaining Scope 1 and 2 footprint consists of gas leakages. We can reduce these but never entirely eliminate them. Indeed, we have a legal obligation to distribute gas, and there are still many uncertainties about making the energy system gas-free by 2050. Because we want to stand by our commitments, we have decided not to set a 2050 target at this time.

Tracking effectiveness of measures

We track effectiveness of our measures to assess whether sustainability measures are working, identify areas for improvement and ensure we meet our goals on time. To this end, we use KPIs and metrics:

• We do not have a target for electricity grid losses beyond the policy we are already implementing. We buy green and will continue to do so. This is reflected in our CO₂-eq footprint. This includes all greenhouse gas emissions.

• We track the effectiveness of the measures against gas leakage losses with the KPI on CO₂-eq savings,1 which is calculated for Enexis Groep as a whole. ^{(ESRS 2 MDR-T par 80a en 80c)(ESRS 2 MDR-M par 75).}   This KPI is expressed as a percentage reduction compared to scope 1 and 2 CO₂-eq emissions in the baseline year 2024. ^{(ESRS 2 MDR-M par 75 en 77a en c; ESRS 2 MDR-T 80a)} The 2023 footprint is ISO-14064 verified, the methodology of which serves as the starting point for the 2024 baseline year footprint.^{(ESRS 2 MDR-T 80f)}   The target for 2025 is a 9% reduction compared to the 2024 baseline year. ^{(ESRS 2 MDR-T 80d en 80e)} We are monitoring this KPI against the target.^{(ESRS 2 MDR-T 80b} As 2024 is the baseline year, we cannot report on progress yet. ^{(ESRS 2 MDR-T 80j)} We have not yet set a target for 2026. 

• Performance in the area of mobility is reflected in the KPI for CO₂-eq savings. ^{(ESRS 2 MDR-T 80a-j)}

• We track effectiveness of electricity grid expansion and reinforcement ^{(MDR-T par 80a)} with the KPI on technical realised grid capacity, which we express in megavolt amperes (MVA).^{(ESRS 2 par 75 en 77).}  For an explanation of the methodology, target and achievement of technical realised grid capacity, see S4 – Consumers and end-users.

• Policy and measures for climate change adaptation (effects of extreme weather events) are, among others, reflected in the KPI Annual Outage Time (AOT).^{(ESRS 2 MDR-M par 75)} We aim for high reliability in our grid. Enexis' infrastructure can withstand a wide range of extreme weather conditions. Floods can potentially lead to interruptions in the supply of electricity to customers. This outage is then reflected in the AOT, calculated for Enexis Groep as a whole. ^{(ESRS 2 MDR-T par 80a en 80c} An explanation of the methodology, objective and implementation of the AOT can be found in S4 - Consumers and end users.

• The metrics we use to track effectiveness for our material impacts, risks and opportunities in renewable energy are still under development. For renewable heat, we have set a target with partners to deliver 50,000 additional homes with heat in our service area by 2030. For green gas, we monitor the volumes of green gas transmitted in million cubic metres (Mm³). In 2024, 280 Mm³ of green gas was injected into the grid operators’ networks. In our service area, this was around 118 Mm³. Our target for 2025 is to increase this figure to 140 Mm³.