Rwe Ag · XETR:RWE
Rwe — ESG Presentation (2011)
28 slides from Rwe's sustainability presentation, 2011
Slide 1: RWE – A Sustainable Investment
RWE – A Sustainable Investment Company Presentation Summer 2011
Slide 2: News from 2010
News from 2010 > RWE is one of the first companies in the DAX to link executive board remuneration directly to the achievement of sustainability goals. > Concrete CR targets for 2011 – 2013 have been defined > In 2010, specific CO2 emissions improved by 8% > Share of renewables in generation increas
Slide 3: Our CR strategy: Ten areas of action (I)
Our corporate responsibility (CR) strategy: Ten areas of action (I) Area for action We are committed KPIs Target Status: 31 Dec 2010 Climate protection … to significantly reducing the CO2 CO2 emissions after Customary emission Specific emission factor intensity of our generation portfolio. Our allow
Slide 4: Our CR strategy: Ten areas of action (II)
Our CR strategy: Ten areas of action (II) Area for action We are committed KPIs Target Status 31 Dec 2010 Security of supply … to ensuring system security across >(n-1) criterion1) for > Compliance with the > Power transmission grid our transmission grids at all times. electricity transmission (n-1)
Slide 5: Our CR strategy: Ten areas of action (III)
Our CR strategy: Ten areas of action (III) Area for action We are committed KPIs Target Status 31 Dec 2010 Demographic … to ensuring the long-term availability > Demography Index1) > Demography Index > Demography Index change of sufficient numbers of suitably score of at least 84 score of 83.8 quali
Slide 6: ESG and financial data at RWE Group
ESG and financial data at RWE Group Financial Environmental 2010 2009 2008 2010 2009 2008 External revenue €million 53,320 47,741 48,950 Specific CO2 mt/MWh 0.732 0.796 0.768 emissions EBITDA €million 10,256 9,165 8,773 Share of % 4.0 3.5 2.4 Operating result €million 7,681 7,090 6,826 renewables1)
Slide 7: RWE: A leading European power generator using a broad mix of energy sources
RWE: A leading European power generator using a broad mix of energy sources RWE Group: Germany (country): Power produced in 20101) in TWh Power produced in 20101) in TWh Renewables 8.9 Other 2.2 Renewables 4.3 Other 2.1 Gas 12.1 Gas 42.8 Total Total 225.3 167.7 Nuclear 45.2 Nuclear 45.2 Hard coal 55
Slide 8: Prepared for post-Kyoto: Two thirds of our generation portfolio zero or low carbon by 2025
Prepared for post-Kyoto: Two thirds of our generation portfolio are set to be “zero or low carbon” by 2025 Renewable energies Nuclear energy ~ 1/3 <10% ~ 1/3 ~1/3 Gas Highly efficient coal Page 8
Slide 9: Our strategy to reduce the financial impact of CO2
Our strategy to reduce the financial impact of CO2 Certificates to be purchased Mitigating factors C. in million t p.a. Organic growth 150 – 160 +100 > Commissioning of new build projects (bulk before or in 2013) > Increase in profits from renewable energies > Increase in profits from upstream gas &
Slide 10: Compared to the marginal plant RWE's portfolio is financially slightly long CO2
Compared to the marginal plant RWE's portfolio is already today financially slightly long CO2 t/MWh Pass-through factor 0,9 > Factor by which CO2 price is reflected in power price 0,8 2009 2010 > Set by marginal plants which on average 0,7 Long have a higher emission factor than the 0,6 Short- marke
Slide 11: Physical measures: New-build projects can reduce our CO2 exposure
Physical measures: New-build projects can reduce our CO2 exposure significantly CO2 reduction Shutdowns / New-build projects load factor reductions Relative Absolute Lingen 876 MW 0.34t/MWh Fossil mix 4 TWh 0.75t/MWh -0.41 t/MWh -2 m t p.a. BoA Neurath 2,100 MW 0.95t/MWh Lignite 2,160 MW 1.35t/MWh -
Slide 12: Capex programme: limited flexibility short-term – focused growth mid- to long-term
Capex programme: limited flexibility short-term – focused growth mid- to long-term € billion > Peak of investment programme in 2011 > Reduced capex to less than < 7.5 € 5 bn by 2013 6.4 5.9 Finalising huge conventional <5 <5 power generation programme ~4 p.a.1) mainly in 2012 and 2013 > Sustainable
Slide 13: Focus on wind, hydro and biomass while also supporting new technologies
Focus on wind, hydro and biomass while also supporting new technologies RWE Innogy Overview > Established in February 2008 > Bundling renewables activities and competencies across RWE Group – Focus on capacity growth in commercially mature renewable technologies, i.e. wind, biomass and hydro – Resea
Slide 14: RWE Innogy's basis for organic growth: Our project pipeline
RWE Innogy’s basis for organic growth: Our project pipeline Project pipeline as of 30 June 2011 (electricity generation capacity in GW, accounting view + PPA1) 8.4 17.3 > Total pipeline with projects until 2020 amounts to 17.3 GWel > Strongly geared towards hydro (30%), onshore (31%) and offshore wi
Slide 15: Renewable energy in RWE Group today: A leading renewables generation position in Europe
Renewable energy in RWE Group today: A leading renewables generation position in Europe RWE Group renewable energy capacity in > 2.9 GW operational renewables assets operation by technology and country (end 2010) account for roughly (Accounting view1 + PPA, as of December 31, 2010) – 6% of the Group
Slide 16: RWE Innogy target portfolio (2014)
Risk diversification across technologies, regions and support mechanisms … generation capacity … electricity generation Biomass Onshore RWE Innogy target portfolio (2014) by … Wind Hydro Biomass Onshore Wind Offshore Offshore Wind Hydro Wind … country (electricity generation) … support mechanism (el
Slide 17: RWE's current Kyoto credit portfolio
RWE’s current Kyoto credit portfolio Projects by June 2011 Contract volume by technology Hydro N2O 100 HFC23 Energy Efficiency Wind 90 Biogas CMM 80 Biomass Methane avoidance Solar 70 ERPA1) Fugitive others mill. certificates 60 100 50 In validation ERPA1) Contract volume by region 40 In validation
Slide 18: Increasing energy efficiency – three examples
Increasing energy efficiency – three examples “5,000 Town Halls” project > RWE assists municipalities in its German sales regions by bearing the costs of analyzing their energy consumption in these properties. > Our aim is to encourage municipalities to modernize their town halls and other public bu
Slide 19: Smart and mass-market capable charging infrastructure system developed
Smart and mass-market capable charging infrastructure system developed OVERVIEW OF THE RWE E-MOBILITY TECHNOLOGY CONCEPT Internationally recognised technology leader GSM with about 20 patents VDE- > Fast charging on alternating current basis (AC) standard > 3-phase, 400V, up to 64 A, up to 44kW plug
Slide 20: Our vision: E-mobility to play a vital role in the smart grid of the future
Our vision: E-mobility to play a vital role in the smart grid of the future Electric vehicles & Renewable energies charging System-services from infrastructure distribution grid operator Balancing power SmartHome Pooling Local (virtual power plant) generation and IT-Systems consumption Transmission
Slide 21: RWE is preparing the future today: E-mobility, renewable energies and add-on services
RWE is preparing the future today: E-mobility, renewable energies and add-on services INTELLIGENT INFRASTRUCTURE FOR FUTURE SERVICES ALREADY IN DEVELOPMENT > Intelligent control as prerequisite for optimum use of Renewable renewable energies Energies (Vehicle-to-grid) – Charging batteries on over-su
Slide 22: We attach great importance to effective and transparent corporate governance
We attach great importance to effective and transparent corporate governance > Our guiding principle is always the most up-to-date version of the German Corporate Governance Code, which was introduced in 2002. In recent years, we have always issued an unconditional statement of compliance. New recom
Slide 23: Sustainability is part of executive board compensation
Sustainability is part of executive board compensation > In light of the German Act on the Appropriateness of Management Board Compensation (VorstAG), the compensation structure has been brought more in line with sustainable business development. > Payment of 25% of the bonus is withheld for three y
Slide 24: In 2010, RWE has spent € 2,863 million on environmental protection
In 2010, RWE has spent € 2,863 million1) on environmental protection Climate protection €1,886 million 66% Clean air2) €393 million 14% Water protection3) €304 million 10% Waste disposal €163 million 6% Landscape conservation4) €91 million 3% Noise abatement €21 million 1% Restoration of contaminate
Slide 25: Our responsibility for the supply chain of hard coal
Our responsibility for the supply chain of hard coal > Total volume of hard coal purchased in 2010: 10,540,266 metric tonnes > The hard coal needed to fire the RWE power stations is imported through RWE Supply & Trading, which buys it on the international coal markets, in many cases from coal mercha
Slide 26: RWE: Satisfying scores in sustainability ratings
RWE: Satisfying scores in sustainability ratings DJ Sustainability Index 2010 Vigeo 100 89 89 Member since 1999 90 83 79 80 81 80 74 70 57 59 57 60 RWE 52 50 Industry average 43 Best Score 40 30 20 10 0 Economic Environmental Social Dimension Total Dimension Dimension Carbon Disclosure Project oekom
Slide 27: Structure of CR management at RWE
Structure of CR management at RWE Executive Board of RWE AG Strategic decisions Objectives Recommendations CR Coordination Committee of Executive Board Members Operational decisions Uptake of relevant Unit Corporate Responsibility / developments Targets Reporting Environmental Protection Assessment
Slide 28: Further Information
Further Information RWE Annual Report 2010 www.rwe.com/ir RWE Corporate Responsibility Report 2010 and key figures for the period 2006 – 2010 online available at: www.rwe.com/cr-report Page 28