Measures to promote circularity

Measures on the inflow of resources

We are constantly looking for ways to become more circular without compromising the quality and speed of our grid construction and maintenance. In 2021, we worked with a circularity expert to explore promising measures to reduce the environmental impact of components. Some of these measures are outlined in the table below. The measures are implemented in the upstream value chain and in our operations. ^{(ESRS 2 MDR-A 68a,b)}

The degree of circularity is one of the award criteria in the component procurement process. We also request raw material passports from our component suppliers. These specify the materials used in the product and how much is made from secondary raw materials. ^{(ESRS 2 MDR-A, 68 a,b, E5-20b)}

To enhance circularity in the sector, we work with other grid operators and knowledge partners, such as the Groene Netten1 consortium and the CE Delft knowledge institute. We have also commissioned KiWa to independently verify the raw material data provided by suppliers in the raw material passports. And we are exploring ways to improve the data. ^{(ESRS2 MDR-P 65d)}

The table below shows an overview of some of our measures regarding the inflow of materials. It outlines the targets they contribute to, what we aim to achieve with the measures, the planned completion dates and our progress. It also shows the R strategies the measures support. Where the column refers to ‘process’, this pertains to measures related to optimising the organisation for circularity and reducing the use of primary materials. As ‘process’ is not a formal R strategy, it is shown in italics. ^{ESRS MDR-A 66, 68a-c, e, ESRS E5-2, para 17, 20 b, c,d, e,f)}

Planned measures to reduce material use

We will investigate whether materials can be eliminated in the design of components. We will also explore the feasibility of adjusting the material composition of components. We plan to use both measures to reduce the use of primary raw materials per product unit. ^{ESRS 2 MDR-A 68a-e, ESRS E5-2, 18, 20c,d,}

Measures on the outflow of resources

We aim to handle materials that leave our processes in a responsible way. The measures we take mainly affect the downstream value chain. Indirectly, they also affect the upstream value chain as we avoid sourcing new materials through reuse. ^{(ESRS 2 MDR-A, 68(b), E5-3,24c)}

The table below shows an overview of some of our measures related to the outflow of materials. It outlines the targets they contribute to, what we aim to achieve with the measures, the planned completion dates and our progress. It also shows the R strategies the measures support. When the column refers to ‘process’, it pertains to measures not directly related to an R strategy but which focus on enhancing circularity and reducing the use of primary materials within the organisation. ^{(ESRS MDR-A 66, 68a-c, e, ESRS E5-2, para 17, 20 b, c,d, e,f)}

Planned measures for reuse, waste and waste materials

To optimise the use of raw materials, we plan to work with suppliers to return unused materials for reuse or recycling. This planned measure aligns with the R strategies of Reuse, Refurbish, Remanufacture and Repurpose. It is a measure that we aim to launch and ideally develop into a continuous process. 

Another measure we want to implement for optimal use of raw materials is the redeployment or repurposing of products and materials. This will help avoid the purchase of new materials. This measure applies to elements other than the components already in scope for reuse. This measure aligns with the R strategy of Reuse. This will also be a continuous process.

To prevent waste, we will continue taking steps to optimise inventory management in the future. ^{E5-2 18, 20 c, d, e, f, MDR-A 68a-e, (AR 12b)}

Targets inspire and provide direction

Sustainability targets provide direction, motivate us to be more circular and encourage improvement. 

Target on the inflow of resources

The inflow target is to reduce primary raw materials per product unit for the components in scope by 50% by 2030 compared to 2014. ^{(E5-3, para 21, 24 b, c, d, MDR-T, 79 b)}

Specifically, this target for in-scope components means the following:

This target was set in 2021, in line with the policy to use less raw materials and buy more recycled materials. The target is inspired by the Dutch government’s circularity target and was set with the advice of an external circularity expert. It is not based on scientific research and is voluntary. The scope of the target is the four component groups: low-voltage cables, medium-voltage cables, gas pipes and distribution transformers. The target covers the upstream value chain. ^{(E5-3 para 24a-d, 25, 27, E5-1 para. 14, MDR-T 79e, 80a-g)}

The 2014 baseline measurement assumed that all components were made from 100% primary materials. We use raw material passports to calculate the degree of circularity of the four components in scope. Where these are not available, we rely on the knowledge of internal experts on material composition. Our aim is for all component suppliers to provide raw material passports. ^{(ESRS E5-3, 24 b, c en d, E5-3,25, MDR-T 80 d,f)}

Target on outflow of resources

• Reuse: We do not yet have a formal target for this. The aim is to set one within the next three years. We monitor the effectiveness of our approach using the ‘Avoided purchase value’ indicator (see ‘Measuring sustainability targets: staying on track’). We aim to increase both the number of components reused and the avoided purchase value. ^{(MDR-M 72, MDR-T,79 d, 81a,b).}

• Waste: While we are doing a great deal to prevent waste, we do not yet have a specific target for this either. In the coming years, we will explore the possibility of developing a meaningful target and measuring waste prevention. ^{(MDR-T 79b, 81a,b)}

• Waste materials: These targets are under development. In practice, we are constantly working on waste separation. We aim to reduce our residual waste to less than 10% and increase our separation rate to at least 85%. ^{(ESRS E5-3, 24 e, f, 25, MDR-T 79,b, 81a,b).}