Rwe Ag · XETR:RWE
Rwe — ESG Presentation (July 2007)
27 slides from Rwe's sustainability presentation, July 2007
Slide 1: RWE – A Sustainable Investment
RWE – A Sustainable Investment Company Presentation July 2007
Slide 2: RWE is strongly committed to corporate responsibility (CR)
Materiality counts RWE is strongly committed to corporate responsibility (CR) Our Commitment Responsible business practice towards society and the environment is critical to sustaining the business success of RWE RWE continually strives to act as a living part of the community on an internationa
Slide 3: Our sustainability strategy defines six areas of action
Materiality counts Our sustainability strategy defines six areas of action New We make a key contribution Climate to protecting our climate protection We assume responsibility for our employees and society Social respon- We seek open dialogue with External requirements sibility our stakeholder
Slide 4: Key demands for sustainable energy supply
Key issue: Climate protection Key demands for sustainable energy supply C Competitiveness C Provide cost-efficient European energy supply E Environmental compatibility Climate protection Minimization of classic emissions (NOX/SO2/dust) Preservation of resources E S S Security of supply Bro
Slide 5: RWE's power generation: No. 2 in Europe using a broad mix of energy sources
Key issue: Climate protection RWE’s power generation: No. 2 in Europe using a broad mix of energy sources Germany: Power produced in 2006 UK: Power produced in 2006 in TWh (own plants only 1) in TWh Hydro, other 3.4 Oil, other 1.3 Gas2 9.9 Hard coal 19.7 Total Total Nuclear energy 47.3 148.2 Gas 14.
Slide 6: RWE's contribution to climate protection comprises a package of measures
Key issue: Climate protection RWE‘s contribution to climate protection comprises a package of measures Energy efficiency: Construction of new power plants using the best available technology / R&D 01 Renewable energies: 04 02 Zero-CO2 power plant: Invest about € 700 Industrial scale with coal 03 mil
Slide 7: Modernising and expanding existing power stations
Key issue: Climate protection Modernising and expanding existing power stations Commissioning 2010 2015 2020 Efficiency Today increases Exploitation of existing efficiency potential Tomorrow Increased efficiency due to new power plant technology CO2 Beyond capture Virtually CO2-free power plant with
Slide 8: Technology of today: Optimizing the generation fleet through state-of-the-art power plants
Key issue: Climate protection Technology of today: Optimizing the generation fleet through state-of-the-art power plants Niederaußem power plant 150 MW 300 MW 600 MW 1,000 MW BoA units units units unit Start 1963 1965 – 1971 1974 2003 η 33% 35% 36% > 43% CO2 1.2 t/MWh 1.1 t/MWh 1.1 t/MWh 0.9 t/MWh 8
Slide 9: Technology of today: Reduction of CO2 emissions by more than 13 million tonnes
Key issue: Climate protection Technology of today: Reduction of CO2 emissions by more than 13 million tonnes p.a. through planned investment in new power plants Capacity Projected Capital Efficiency of Efficiency of Project in MW Location construction-phase expenditure new plant replaced plant Germa
Slide 10: Technology of tomorrow: Increase in efficiency – the priority development target
Key issue: Climate protection Technology of tomorrow: Increase in efficiency – the priority development target for CO2 reduction 700°C power plant (hard coal & lignite) Lignite pre-drying plant at Frechen Efficiency increase of 4%pts possible Projects: COMTES700 – Component Test Facility for a 7
Slide 11: Technology of the Future: RWE to gain leadership in virtually CO2-free power plant technology
Key issue: Climate protection Technology of the Future: RWE to gain leadership in Europe in virtually CO2-free power plant technology 1 RWE Power plans to develop and build a virtually CO2-free 450 MW-coal- fired IGCC1 plant including CO2 transport and storage in Germany to demonstrate the whole CCS
Slide 12: Technology of the Future: Electricity generation with CO2 capture and storage
Key issue: Climate protection Technology of the Future: Electricity generation with CO2 capture and storage – RWE drives IGCC technology forward Oxygen IGCC Gas and Gasification Electricity Hydrogen Steam turbine Coal 450 MWgross Also usable as H2, or for SNG, methanol, fuel generation Coal drying C
Slide 13: Technology of the Future: Operation start-up by 2014 requires parallel development
Key issue: Climate protection Technology of the Future: Operation start-up by 2014 requires parallel development of power plant and CO2 storage 2006 2007 2010 2014 Project Planning, Construction, Power plant development approval start-up Decision on fuel source Licence, decision Start (hard coal or
Slide 14: CO2 avoidance costs through building new power plants
Key issue: Climate protection CO2 avoidance costs through building new power plants* (€/t CO2) Today Nuclear power 11 – 15 Hard coal 21 – 23 Lignite (BoA) 21 – 23 CCGT 34 – 38 Wind 40 – 67 Hydro 35 – 85 Photovoltaic 525 – 670 ALPC (pre-drying) 26 – 28 Tomorrow *Calculation of costs: IGCC without cap
Slide 15: CDM/JI projects give RWE access to cost-effective reduction of greenhouse gas emissions
Key issue: Climate protection CDM/JI projects give RWE access to cost- effective reduction of greenhouse gas emissions Clean Development Mechanism (CDM): Emission reductions through investment by an industrialized country in a country without reduction commitments are credited to the emission accoun
Slide 16: RWE's approach to the CDM/JI market
Key issue: Climate protection RWE’s approach to the CDM/JI market CDM/JI from RWE’s perspective RWE is the biggest emitter in the EU emissions trading system and will face a substantial under-allocation of certificates in 2008-12 according to actual NAP drafts. Therefore, RWE actively pursues the
Slide 17: RWE: 1.4 GW renewable capacity in Europe
Key issue: Climate protection RWE: 1.4 GW renewable capacity in Europe MW (as of Dec 2006) Hydro Wind Biomass Germany 599 49 68 UK 59 4001 France 45 Spain/Portugal 28 123 Total2 731 572 68 1 Thereof 60 MW offshore 2 Consolidated or 100% contracted power plants. In addition RWE is engaged in 3,177 MW
Slide 18: Social responsibility is about much more than promoting fine arts and culture
Key issue: Social responsibility Social responsibility is about much more than promoting fine arts and culture … Areas of social responsibility: Code of Conduct Environment Our Code of Conduct sets Group wide We are committed to improving our standards for responsible action and environmental perf
Slide 19: We are strongly committed to enhancing our human resources
Key issue: Social responsibility We are strongly committed to enhancing our human resources We adhere to the principles of the International Labour Organisation (ILO). Appointment of a Group diversity officer in 2006. Occupational health and safety is a key issue for RWE: – In August 2006, the
Slide 20: We are a reliable partner in the communities around us
Key issue: Social responsibility We are a reliable partner in the communities around us Mutual benefits drive our community engagement projects RWE Youth Foundation We help young people at risk to escape from a downward spiral to poverty and exclusion "I Can Do It! " We prepare disadvantaged young p
Slide 21: Structure of CR management at RWE
Key issue: CR management Structure of CR management at RWE Executive Board of RWE AG Strategic decisions Recommen- Objectives dations CR Coordination Committee of Executive Board Members Operational decisions Uptake of relevant Group Public/ developments Targets Reporting Environmental Affairs &
Slide 22: We attach great importance to effective and transparent corporate governance
Key issue: CR management We attach great importance to effective and transparent corporate governance RWE complies with all recommendations of the German Corporate Governance Code in the version dated July 24, 2006. As a result, RWE’s latest compliance declaration dated February 21, 2007 contains
Slide 23: Transparency is a key element of our stakeholder dialogue
Key issue: Stakeholder dialogue Transparency is a key element of our stakeholder dialogue We supply SRI investors and analysts with detailed information and answers mainly by questionnaires, company reports, road shows, and one-on-ones We supply the Carbon Disclosure Project, WWF, German Watch e
Slide 24: We assist customers in increasing energy efficiency
Key issue: Resource efficiency We assist customers in increasing energy efficiency Contracting Contracting is a growing business case. Taking over the energy supply of industry and communities we implement the most efficient techniques and operations (e.g. Guinness Breweries, heat supply for Berli
Slide 25: Protection of nature and enhancing biodiversity is a key element
Key issue: Biodiversity Protection of nature and enhancing biodiversity is a key element to maintain acceptance and trust Recultivation of open-cast lignite mines: – We completely recultivate the mined-out areas in close co- operation with local inhabitants. We give back a reshaped landscape of hi
Slide 26: In 2006, RWE has spent €690m on environmental protection
Environmental protection: not for nothing In 2006, RWE has spent €690m on environmental protection Water protection 26% (mainly wastewater treatment) Clean air 31% (e.g. operation of fluegas desulphurisation systems) Total: € 690m* Landscape conservation 11% (2005: € 984m) (e.g. recultivation projec
Slide 27: Ratings underpin successful CR strategy of RWE
CR pays off Ratings underpin successful CR strategy of RWE Since the launch in 1999 RWE has been listed in Dow Jones Sustainability Indexes. For 2006/07 we are selected "Sustainability leader in multi utilities" Member of Climate Leadership Index of CDP4 with a best-in-class ranking Our open r