Inflow of materials

Most of the raw materials we use are contained in transformers, medium-voltage (MV) cables, low-voltage (LV) cables, and gas pipes. These components are therefore the primary focus of our circularity approach. ^{(MDR-P 65-b)} Together, they mainly consist of the following raw material groups: ^{(ESRS 2 MDR-P, 65 a,b, E5-4 30)}

In addition, these components contain materials designated by the EU as critical and/or strategic, also known as Critical Raw Materials. The main components – cables, transformers and gas pipes – contain materials such as aluminium, copper, silicon, and tin. Aluminium accounts for the largest volumes, followed by copper. Silicon volumes are significantly lower, but silicon is essential, for example for alloying specific steels used in transformers. ^{(E5-4 30)}

Policy

To enable the energy transition, we are significantly expanding our grid, which requires a large number of components and, consequently, substantial raw materials. As a result, reducing overall material demand is not feasible. Instead, we focus on using components that require fewer new raw materials. Consistent with the R-ladder, we are committed to reducing the use of primary raw materials and increasing the use of recycled or bio-based materials. We encourage suppliers to distinguish themselves in these areas and explicitly take this into account in our procurement decisions. Our direct upstream suppliers are primarily based in Europe, with some in Turkey, the United States, and Canada. ^{(ESRS 2 MDR-P, 65a,b, ESRS E5 12, 15a,b, 16)}

KPI

We use the following KPI to monitor progress in implementing our circularity strategy: the amount of primary raw materials per unit of product for four key components. Our objective is to reduce this KPI by 50% by 2030 compared to 2014. In concrete terms, this means:

This KPI relates to the upstream value chain and aims to stimulate circular design and reduce the use of primary materials. The KPI is based on the national Circular Economy programme “The Netherlands circular by 2050” (Ministry of Infrastructure and Water Management). No external stakeholders were involved in setting this KPI, other than an external specialist in the field of circularity who took on an advisory role. The metrics mentioned in this chapter have not been validated by a third party other than our external auditor. ^{(E5-3 23, 24  a, b, c, d, MDR-T, 79 b, 80a,b,c).}

Measures

We are taking various measures to reduce the inflow of primary raw materials, both in the upstream value chain and in our own operations:

Sustainable procurement

In the tender for distribution transformers, sustainability accounts for 18% of the evaluation score, of which 13% specifically relates to circularity. The focus is on replacing primary raw materials with recycled alternatives and reducing material use per product. The tender was published in 2025, with a contract award planned for 2026 (recycle).

More sustainable component design

An industry-wide standards committee has determined that an inner sheath is no longer required for cables. This change will reduce material use in future cable orders (refuse).

Reuse

We are strongly committed to reusing existing components and are making tangible progress in this area, thereby avoiding the inflow of new materials. Further details are provided in the section on reuse.

Collaboration with suppliers

We engage with suppliers to develop more circular products. In 2025, we assessed the use of recycled and bio-based materials in components. This resulted in contracts for cables with higher shares of recycled plastics, metals, and bio-attributed plastics being concluded in 2025 (recycle, rethink).

Supply chain insight and knowledge sharing

We are also engaging with suppliers of raw and other materials to gain deeper insight into the supply chain and to share knowledge – from copper and steel to plastics. This broader approach supports transparency, knowledge sharing, and joint development of more sustainable components.

Collaboration in the sector

Together with Stedin and Alliander, we update the uniform raw materials passport template annually. We also collaborate with the testing institute Kiwa to certify sustainable materials included in these passports. This allows us to independently verify suppliers’ claims regarding the use of sustainable materials. By 2025, three cable suppliers had been certified and two transformer suppliers added, with several other suppliers currently undergoing certification.

Joint chain dialogues are also being held. In 2025, a dialogue on recycled aluminium in cables and low-carbon steel for transformers was held, with more than 50 participants, including grid operators, government representatives, aluminium smelters, cable manufacturers, waste processors, and other chain partners.

We also collaborate with other grid operators through initiatives such as Groene Netten (‘Green Networks’), a coalition of major infrastructure managers in the Netherlands that addresses sector-wide challenges. In 2025, we joined a project to standardise sector rules and documentation for recycled and low-carbon materials across grid operators, transformer suppliers, and steel, copper, oil, and other material suppliers. ^{(ESRS 2 MDR-A,  ESRS 2 MDR-P 68 a,b,c E5-20b)}

Measuring progress and results

We use a circularity model to estimate progress towards our inflow targets. This model, developed in collaboration with an external circularity specialist, provides insight into the total volumes of primary and secondary raw materials used in our components. The model is based on several assumptions.

For example, we use raw materials passports for LV cables, MV cables, gas pipes, and transformers. These passports specify the weight of the component, the materials used, and the proportion of primary and secondary materials. We receive these passports from suppliers and apply one passport per item number, even when multiple suppliers provide the same item number with different passports. This results in an estimate of the weight and material composition for all items with that item number.

If no raw materials passport is available, we rely on the expertise of internal specialists to estimate component weight and material composition. In such cases, materials are classified as non-recycled, even if recycled materials may in fact have been used. ^{(E5 32, MDR-T 77a, c)}

We are currently working on further developing the circularity model in order to measure progress on the objectives more accurately in the future. In 2026, we will also work on deepening/ revising the KPI on circularity. A reflection on the 2030 target is part of that process.

The measurements produced the following results in 2025.

Progress on the objective of a 50% reduction per product unit by 2030 compared to 2014 is as follows:

The decrease in primary materials in transformers is explained by the fact that more transformers of a specific model were purchased, in which a higher proportion of recycled material is used compared to other transformers.

In 2025, more LV cables were purchased for which we do not have a material passport than in 2024. When we do not have a material passport for a component, we classify all materials as primary, even though we know that secondary material is included.

For MV cables, the situation is the opposite. We purchased more cables with a material passport that contain secondary material. As a result, we know that these cables consist (partially) of secondary material. Consequently, we see a decrease in primary material per product unit for this component category.

The increase in primary material per product unit for gas pipes is explained by the fact that we purchased relatively more PVC/PE pipes and fewer copper pipes. PVC and PE pipes are not allowed to contain secondary material under the current regulatory framework, whereas copper pipes may contain secondary material.

The material types in kilograms broken down into primary material and secondary material are as follows:

In 2025, we purchased a total of 32,454,489 kg of material. The total amount of material has increased significantly compared to 2024. This increase is explained by the growth in our investment programme for the expansion, management, and maintenance of our grids. In addition, the components themselves are becoming larger and heavier in order to facilitate the required capacity, which means that more material is needed per component. ^{(ESRS E5-4 31a, c)}