Statement electricity producing companies of the Netherlands
Corporate social responsibility is of paramount importance to the energy production companies in the Netherlands (Electrabel, E.ON Benelux, EPZ, Essent/RWE and Nuon). Needless to say, this also entails transparency about their business activities. They therefore take the demand for clarity regarding the origin of fuels, in this case coal and the effect of coal mining on the environment extremely seriously.
As a general rule, coal is purchased both directly from international the mining companies or procured on the global fuel trading markets. Control of the origin of coal that is procured on the market is carried out on the basis of, for example UN guidelines such as the UN Global Compact. Consequently, criteria such as respecting human rights and freedom of association and tackling corruption are part of the procurement policy.
The energy producers in the Netherlands all make use of strict control mechanisms (Counter Party Risk Assessment) and/or codes of conduct that apply to the energy producers themselves as well as to the party with whom business is done. If counterparty fails to comply with the required criteria, action is taken to change this demonstrably in the shortest possible time.
In the case where energy producers are confronted via a third party with possible unacceptable practices, the pertinent control mechanisms come into force. Needless to say, the companies also take the findings of Network seriously and will investigate them further.
The energy companies are aware that establishing the origin of coal is not possible in all cases. At present there are no guarantees in the form of control mechanisms for coal that is not purchased directly from a coal mine but that is procured on the global market. This trade is international and any agreements have to be made at that level too.
The various parties each have their own responsibilities in the chain of mining, supplying and using coal. It is not easy for a party at the end of the chain to take responsibility for the entire chain. However, the urgency and necessity of ensuring that coal is mined responsibly mean that it is seen in that light. The companies’ stated procurement policy and the built-in control mechanisms and/or codes of conduct currently form the basis for this.
The energy companies have already started a dialogue with other parties and social organisations involved to explore the possibilities of putting chain responsibility into practice in full. Together with the parties and organisations concerned, the companies will make a public statement about the outcome of this dialogue in the near future.
