Rwe Ag · XETR:RWE
Rwe — ESG Presentation (December 2017)
38 slides from Rwe's sustainability presentation, December 2017
Slide 1: Delivering long-term value through sustainable management
Delivering long-term value through sustainable management As of December 2017
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promi
Slide 3: Contents
Contents I. Strategic outlook 5 II. Sustainability challenges and commitments 10 III. Governance & management compensation 30 RWE AG | SRI presentation | December 2017 3
Slide 4: Sustainable management is integral for long-term value creation
Sustainable management is integral for long-term value creation ✔ Reliable and flexible provider of affordable and secure energy supply ✔ Target to reduce CO2 emissions by 55 to 65 million tonnes by 2030 ✔ Development of low carbon generation projects and new technologies ✔ Strong track record of ex
Slide 5: Strategic outlook
Strategic outlook RWE AG | SRI presentation | December 2017 5
Slide 6: Continuing to actively shape our future
Continuing to actively shape our future Operating business Portfolio management Lignite & European Supply & innogy Nuclear Power Trading Provider of secure and affordable Financial investment to energy supply cover long-term liabilities RWE AG | SRI presentation | December 2017 6
Slide 7: Strategy designed to benefit from market requirements
Strategy designed to benefit from market requirements Traditional energy markets Renewables expansion Future energy markets > Established merit order > Decreasing conventional > Increasing use > Focus on volume and fuel volumes of electricity efficiency > Intermittent production > Emerging technolog
Slide 8: Powering. Reliable. Future.
Powering. Reliable. Future. Evolution of technologies for firm capacity Conventional plants Flexible plants Storage Sector coupling > Operational > Proprietary > Sizeable pumped > Strong R&D track excellence across engineering storage facilities record all technologies know-how > Operational battery
Slide 9: Strategic focus on evolution of existing business portfolio
Strategic focus on evolution of existing business portfolio Optimise Enhance Tap into evolving existing operations portfolio opportunities Lignite & Nuclear/ European Power > Explore technologies European Power able to provide security > Develop portfolio of supply > Manage cost base for future mark
Slide 10: Sustainability challenges and commitments
Sustainability challenges and commitments RWE AG | SRI presentation | December 2017 10
Slide 11: Strong commitment to corporate responsibility
Strong commitment to corporate responsibility Focus area Target 2016 > We are committed to reduce our CO2 emissions in Reduction of Climate change line with European and national greenhouse 55 – 65 m tonnes CO2 140 m tonnes reduction targets to support the UN climate goals emissions by 2030 > We str
Slide 12: Support of UN climate goals and Paris pledge to limit temperature increase to 2ºC
Climate change Support of UN climate goals and Paris pledge to limit temperature increase to 2ºC ✔ Doubling of gas-fired capacity over the last 10 years ✔ 18% reduction of CO2 emissions since 2012 Target to reduce CO2 emissions by 55 to 65 million tonnes by 2030 ✔ compared to 2015 ✔ Investments in l
Slide 13: Doubling of gas-fired capacity in RWE's generation portfolio
Climate change Doubling of gas-fired capacity in RWE’s generation portfolio over last 10 years RWE generation capacity in core markets Conventional power generation capacity as of 31 December 2016 (net, in %)1 of the RWE Group (net, in GW) 1 3 2006 2016 18 8.5 UK GW Gas 6.9 15.2 121% 10 78 Germany
Slide 14: Significant CO2 reduction in line with broader European and national roadmap
Climate change Significant CO2 reduction in line with broader European and national roadmap CO2 emissions by RWE in Germany, Benelux and the UK in million tonnes > Shut-down of coal-fired Target1: power plants, e.g. Voerde minus 55 – 65 A/B (2017), stand-by 171 million tonnes reserve (2017-2019), -1
Slide 15: Lignite contributes majority of CO2 reduction
Climate change Lignite contributes majority of CO2 reduction 2020 2030 Planned Stand-by reserve End of Inden mine capacity decrease 2 x 300 MW Weisweiler1 ~2030 2017 2 x 300 MW Frimmersdorf 2021 2 x 600 MW Weisweiler1 2018 2 x 300 MW Niederaußem 2022 2019 1 x 300 MW Neurath 2023 By 2020 By 2030 CO2
Slide 16: Various low carbon projects in the pipeline
Climate change Various low carbon projects in the pipeline Biomass Gundremmingen Tilbury Energy Centre > Conversion to biomass > Development of open cycle > Development of three new- co-firing of Amer 9 (80%) gas turbine plant for grid build options: and Eemshaven (15%) stabilisation reserve – Combi
Slide 17: Pilot projects focus on new technologies
Climate change Pilot projects focus on new technologies Battery storage systems Sector coupling > Pilot and research projects to test > Assessment of power-to-heat technology suitability of battery storage systems – Potential for temporary fuel for security of supply replacement in heat and steam >
Slide 18: Committed to protect and reinstate the ecosystems of the areas affected by our operations
Environment Committed to protect and reinstate the ecosystems of the areas affected by our operations 0 22,950ha 9 of recultivated nuclear power Major land at opencast plants safely environmental lignite mines operated across accidents by 2016 plant lifecycle > Act in compliance with Group Directive
Slide 19: Recultivation contributed to designation of landscapes as conservation areas
Environment Recultivation contributed to designation of landscapes as conservation areas > More than 22,000 ha so far recultivated in the Rhenish lignite mining area – thereof more than 7,700 ha of woods, forests and green belts > Recultivation focuses on the development of old-growth forests and ha
Slide 20: Rigorous procurement management approach to hold supply chain to highest sustainability standards
Supply chain Rigorous procurement management approach to hold supply chain to highest sustainability standards > Centralised purchasing process to ensure company-wide application of standards 99.7% of purchasing volume subject to requirements of Code of Conduct > Review and appraisal of all potentia
Slide 21: Promotion of hard coal supply chain standards
Supply chain Promotion of hard coal supply chain standards Overview of hard coal supply countries Drive for responsible hard coal procurement > Procurement of majority of hard coal via > Founding member of Bettercoal to improve international wholesale markets environmental conservation, mining and w
Slide 22: Working towards a healthier and safer work environment
Health & Safety Working towards a healthier and safer work environment Occupational Safety > Strengthening of health and safety performance of employees and contractors > Target to reduce lost time incident frequency (LTIF) to 1.8 by 2018 2.1 > Goal of ensuring that all Group companies have certifia
Slide 23: Aim to provide a motivating and inspirational working environment
Workforce Aim to provide a motivating and inspirational working environment Numerous training and development offerings > Specialised subject related training > Blended learning programmes > Mentoring and peer coaching > 2,258 apprentices at the end of 2016 Motivation index 2016 72.4 points Offers t
Slide 24: Ambitious targets and programmes to support equal opportunities and diversity
Diversity Ambitious targets and programmes to support equal opportunities and diversity Group-wide initiatives and networks to enhance focus diversity topics (gender, age, cross-culture) > Engagement in ENEI network increases outward orientation and provides input on best practice diversity standard
Slide 25: Companius supports and promotes social engagement of employees
Social engagement Companius supports and promotes social engagement of employees Strategic goals > Promotion of social responsibility through employee commitment > Development of employees’ skills through volunteering > Improvement of employee loyalty and motivation, strengthening the employer brand
Slide 26: Integrity in all our activities is essential to sustainable and successful growth
Compliance Integrity in all our activities is essential to sustainable and successful growth Compliance management at RWE Code of Conduct & Supervisory Board of RWE AG Directives ad hoc reporting Quarterly & Compliance Executive Board of RWE AG Compliance trainings & communication tone at the top &
Slide 27: Creation & regular updates of the Cyber Security Framework to ensure effective protection
Cyber security Creation & regular updates of the Cyber Security Framework to ensure effective protection Global parameters & trends: Implications on cyber security Cyber security framework for RWE (Development and impact on global cyber security risks) 1. Identify Digitalisation increases potential
Slide 28: Selected cyber security measures
Cyber security Selected cyber security measures Next Generation Cyber Security Next Generation Separation of power Endpoint Protection Awareness Firewalls (NGFW) plant infrastructure Traditional antivirus Cyber security awareness of NGFW enable precise definition To effectively reduce the solutions
Slide 29: Committed to transparency and accountability
Committed to transparency and accountability RWE participates and receives recognition in leading sustainability ratings > Overall 2017 rating: 58/100 – Environment: 60 (Benchmark: 30 – 80) – Labour: 60 (Benchmark: 30 – 80) – Fair business practices: 50 (Benchmark: 30 – 70) – Sustainable procurement
Slide 30: Governance & management compensation
Governance & management compensation RWE AG | SRI presentation | December 2017 30
Slide 31: Two tier governance structure
Two tier governance structure Executive Board Supervisory Board > Responsible for managing and steering of the > Oversees the company’s Executive Board and company appoints its members Tasks > Requires to provide consent to major strategic > Represents company in dealings with third parties decision
Slide 32: Diverse and experienced Supervisory Board fully fulfils competence requirements
Diverse and experienced Supervisory Board fully fulfils competence requirements Diversity Experience Gender Target of 6 female Experience profile of the Supervisory Board members covers all target areas as defined in the competence Supervisory Board Male profile for the composition of the Supervisor
Slide 33: Compensation system consists of three components
Compensation system consists of three components Maximum compensation ~164% > Long-term, share-based compensation scheme Strategic > Conditional on achievement of earnings Budget Performance 80% indicator compensation Plan ~100% (max. 200%) > Linked to performance of RWE shares > Personal investment
Slide 34: Bonus rewards annual economic performance as well as individual, collective and sustainability goals
Bonus rewards annual economic performance as well as individual, collective and sustainability goals > Bonus dependent on company as well as individual performance > Measured by degree of achievement of targeted adjusted EBIT Company > Target figure set by Supervisory Board performance > Target achi
Slide 35: Strategic Performance Plan oriented to the long-term success of the company
Strategic Performance Plan oriented to the long-term success of the company > Grant of performance shares: – Conditional allocation of performance shares based on contractually agreed budget – Final number determined by adjusted net income achieved by company in relation to target figure set by Supe
Slide 36: Appendix
Appendix
Slide 37: RWE Investor Relations – contacts
RWE Investor Relations – contacts Important Links Contacts for Institutional Investors & Financial Analysts Annual and Interim Reports http://www.rwe.com/ir/reports/ Gunhild Grieve Lenka Zikmundova Head of Investor Relations Tel.: +49 201 5179-3116 Investor and Analyst Conferences Tel. +49 201 5179-
Slide 38: POWERING. RELIABLE. FUTURE.
POWERING. RELIABLE. FUTURE. ED” AK =