STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 WG C3-02 : “Sustainable Development Performance Indicators” SC C3 reporting Paris, August 26, 2008

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Scope of Work (ToR content) to initiate information exchanges between WG members concerning Sustainable Development Performance Indicators, to extend the information exchange to TSO not represented in the WG to prepare a general overview of TSO experiences regarding Sustainable Development Performance Indicators (State of the Art) (WG goal: 40 pages Technical Brochure), to share best practices. after this work, Generation Sustainable Development Performance Indicators will be studied.

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Meetings Kick-Off meeting during Paris CIGRE session, on September 1 st, nd meeting in Curitiba (Brasil) on October 20 th, rd meeting during Paris CIGRE session, on August 28 th, th meeting in Mossel Bay (South Africa) on October 30 th, 2007

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Membership Participation : SC C3-02: M. DU FOUR (Belgium), M. NAKAGAMI (Japan) SC C3 members: Ms BODLUND (Sweden), M. WYSS (Switzerland), M. ENOCH (Nederland), MARTIN (Australia)

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Achievements Analysis of guidelines available at the beginning of the study –Sustainability Reporting Guideline (Global Reporting Initiative) V2 –Environmental Performance Indicator guidelines for the Australian Electricity Industry (ESAA) –Guidance notes on environmental benchmarking indicators for the electricity sector (EA) –Sustainability in the Electricity Supply Industry: Phase 1 Report (WSDBC). Analysis of guidelines available issued during the study (late 2006 and early 2008) –Sustainability Reporting Guideline (Global Reporting Initiative) V3 –GRI Electric Utility Sector Supplement – Draft version (GRI) –Sustainability Reporting Guidelines & Electric Utility Sector Supplement Pilot Version

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 References GRI V2 as best existing reference but as no Sector Supplement were available, the WG had to use others guidelines Issue of GRI V3 and a draft of the Electric Utility Sector Supplement late 2006: Indicators have to be reviewed, but 90 % of the work can be considered as valid. Issue of a combined version of GRI V3 and the Electric Utility Sector Supplement beginning 2008.

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 General comments Environmental indicators are specific to TSO, and have to be distinguished from those dealing with generation. For instance –Waste (radioactive waste or ashes vs PCB, iron,concrete...) –Emissions (NOx, SOx, CO2 vs SF6) –Significant spills (radioactive leaks vs oil leaks)  Important risk for TSO to have their environmental impacts hidden by Generation ones. Other indicators should apply (Economic and Social) whatever the company type (TSO, integrated utility, Genco...)

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Curitiba and Paris Achievements Indicators ranking during 2005 Curitiba meeting in order to focus on the most important ones: –Environment: 10 Indicators out 35 GRI Indicators –Social: 6 Indicators out 49 GRI Indicators –Economic: 8 Indicators out 13 GRI Indicators Final draft report sent in July 2007, describing in details the indicators, how to measure them, and examples (GRI V2 compliant...)

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Mossel Bay Achievements Analysis of the difference between GRI V2 and GRI V3: –Which GRI V2 selected indicators have been modified, deleted... –Which GRI V3 indicators are new and are relevant Analysis of the Draft Electric Utility Sector Supplement –Which indicators are relevant Selection of the new indicators for the final report (6 from the GRI V3, 10 from Draft Electric Utility Sector Supplement )

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 GRI V2 -> GRI V3 impact on the previously selected indicators Major changes on Economic Indicators Small impact on other indicators See Excel file “WG GRIV2 selection vs GRIV3.xls sent in SeptemberWG GRIV2 selection vs GRIV3.xls

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 GRI V2 -> GRI V3 impact on the previously selected indicators GRI V2 Selected Indicators deleted in GRI V3 –GRI V2 EC4 Percentage of contracts that were paid in accordance with agreed terms => No equivalent –GRI V2 EN33 Performance of suppliers relative to environment. => No equivalent. –GRI V2 EN25 Impacts of activities and operations on protected and sensitive areas => the information is now captured in other biodiversity indicators particularly GRI V3 EN12 and 13. –GRI V2 LA5 Practices on recording and notification of occupational accidents and diseases => Included in GRI V3 LA7 –GRI V2 PR8 Mechanisms related to customer satisfaction => Included in GRI V3 PR5

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Environmental Indicators Selection New GRI V3 indicator: –EN18 [Add] ?: Initiatives to reduce greenhouse gas emissions and reductions achieved Draft sector supplement: –EU14 ?: Percentage of area under Integrated Pest Management –EU21 ?: Long-term strategy for managing and eliminating high level and low level in service PCBs –EU22 ?: Expected completion date and projected costs of remediation of all known contaminated sites

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Social Indicators Selection New GRI V3 indicator: –LA12 [Add] ?: Percentage of employees receiving regular performance and career development reviews –LA14 [c] ?: Ratio of basic salary of men to women by employee category –SO8 [c] ? : Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations –PR9 [c] ? : Monetary value of significant fines for non- compliance with laws and regulations concerning the provision and use of products and services

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Social Indicators Selection Sector Supplement: –EU25 ?: Participatory decision making processes with communities and outcomes of engagement –EU28?: Exposure limit(s) to electric fields (in kV per m) and magnetic fields (in μT) for members of the public and employees in the areas in which reporting organization operates. –EU29?: Number of injuries and fatalities to the public including diseases involving utility assets.

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Economic Indicators Selection New GRI V3 indicator: –EC2 [c] ?: Financial implications and other risks and opportunities for the organization’s activities due to climate change –EC3 [c] ?: Coverage of the organization's defined benefit plan obligations. –EC4 [c] ? : Significant financial assistance received from government –EC5 [Add] ? : Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation –EC6 [c] ? : Policy, practices, and proportion of spending on locally- based suppliers at significant locations of operation –EC7 [c] ? : Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Economic Indicators Selection Sector Supplement: –EU4 ?: Process and methodologies used to assess existing and future demand, such as integrated resource planning –EU5 ?: Planned capacity (MW), dispatching and/or generation mix (MWh) against projected electricity demand over the long term –EU6 ?: Approach used for peak load management including load shedding –EU7 ?: Customer or supply interruptions (as defined by IEEE recognized standard reliability indicators) –EU8 ?: Approach to Research and Development (R&D), including R&D goals, investment mechanisms and processes for implementation –EU9 ?: Research and Development expenditure by category as a percentage of total research expenditure –EU10 ?: Research and Development expenditure as a percentage of net income –EU12 ?: Transmission and Distribution Loss Factor

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Final Achievements Indicators selected: –Environment: 10 Indicators out 30 GRI Indicators + 1 from the draft Electric Utility Sector Supplement + 6 comments –Social: 8 Indicators out 40 GRI Indicators + 5 from the draft Electric Utility Sector Supplement + 3 comments –Economic: 5 Indicators out 9 GRI Indicators + 3 from the draft Electric Utility Sector Supplement out of 9.

STUDY COMMITTEE C3, System Environmental Performance 26 August 2008 Next steps for WG - proposals to SC C3 Report approved by the WG members to SC C3 May 2008 Report submitted to SC C3 chairman for formal approval by SC C3, May 2008 Waiting for the approval to go for Electra article Extend the work to generation field ??? (Environmental Indicators) WG members are more of the transmission part of the business  Need for new members from generation (only two from Brasil and Switzerland since two years…)