Interview with Ludo van Halderen

‘Our plea for CO2 capture, our efforts to encourage energy saving at the customer, the letter of intent for the underground storage of CO2 in Groningen: last year Nuon assumed a leading role and I see that above all in the employees. They are the standard bearers of this company’s engagement. The outside world is also taking notice: Nuon is increasingly perceived as the market leader in sustainability.’

Van Halderen thinks that Nuon must step up its pursuit of Trias Energetica, the three-pronged approach of energy-saving, sustainable energy sources and cleaner fossil fuel usage.

‘We still need those fossil fuels to guarantee the security of supply. That, too, is one of Nuon’s responsibilities.’ And the energy company is not alone in embracing Trias Energetica. 

In fact, in 2007 the government formulated a brand-new climate policy that echoed these same principles. This policy maps out ambitious energy sustainability and energy-saving targets, whilst also introducing new subsidies for renewable energy and CO2 capture.

Van Halderen sees Nuon as a partner in the government’s climate efforts, but dearly also wants a more consistent policy that is not changed every year. ‘It looks as if this government, with its clear and ambitious climate policy, is capable of that. This is why I say: we must make clear-cut commitments now for the coming ten to fifteen years. Let’s do it while sustainability is still high on the social agenda – and before some new issue captures the nation’s attention.’

Do you think the government takes you seriously as a partner?

‘Yes, I do, but it all  depends on your own contribution. You’ve got to be proactive. You are the one taking the entrepreneurial risk. If, for instance, you want to build a large off-shore wind farm, you must analyse the snags and work out the solutions yourself.’

What do you expect from the current government?

‘The minister must set out uniform rules on key issues like CO2 emissions, both in a Dutch and European context. Once we know where we stand, we are prepared to invest in carbon capture. Targets must be translated into feasible policies. At the moment we are heading in the right direction. The covenant for residential energy saving is one example that comes to mind.’

Are the Dutch climate objectives realistic?

‘Only if we manage to engage everyone in the Netherlands. If we are going to invest in sustainable development, we need to get the public on board. I am convinced that the objectives can only be achieved if everyone in the Netherlands wakes up to the amount of energy they use. The debate about sustainability and energy saving is still largely a boardroom topic. We need to make it a household topic! That’s where the decisions are made. People need to realise that they too can contribute towards energy sustainability and energy saving. And it’s our job to help them do that, for instance by offering “buy now pay later” deals for low-energy products and marketing new sustainable products like solar foil and high-efficiency boilers.’

Last year you said that a merger with a major player like Essent would be a boost for sustainability. So the merger call-off must feel like a missed opportunity…

‘As a large merged energy utility we could have played a leading role in the sustainable development of The Netherlands. The merger process also presented a wonderful opportunity for formulating crystal-clear objectives and visions. That opportunity has passed. The good news is that the future is still at the top of our minds, only for a very different reason. We are required to unbundle Nuon into a grid company and a production and delivery company. So we are basically in the process of setting up two new companies. And the management is seizing this opportunity to redefine our position on sustainability.’

Have the unbundling debate and failed merger pushed sustainability to the background?

‘A great deal of time went into the unbundling and merger processes, which automatically meant less attention for sustainability. We continued to think about it, but not as a top priority. I see that in our objectives, which are not defined sharply enough. How can we help customers save energy? What are our alternatives for fossil fuels? How much energy will customers be using twenty years from now? I expect to see us formulating specific objectives in 2008.’

It is up to Van Halderen’s successors to achieve these clear-cut sustainability targets. As per the end of April 2008 he will stand down as Chairman of the Management Board.

Looking back, what are you most proud of?

‘I am proud that more people are enthusiastic about what’s happening in the energy world; I’m also proud of the social engagement that this company has developed in the past years. And I’m extremely proud of the people who do the work on the ground. The employees are really a mainstay of sustainability at Nuon.’

How do you see your own role in Nuon’s sustainability drive?

‘That’s not really for me to say. But if I had to mention something: a few years ago I took the difficult decision to disband the Sustainability Division. That division had been set up with noble motives, namely to do something extra outside our ordinary business operations. And we succeeded in that aim. But I felt that instead of marginalising sustainability in a separate division, we should see it as a business opportunity for the company as a whole. Everyone had to be fully aware of the need for radical change. But I had no way of telling whether that would actually happen. 

Looking back, I see that everything has worked out very well. Five years ago, sustainability was an add-on, now it is an essential.’

What type of leaders does Nuon need in the future?

‘First of all, people who can handle risks and uncertainties. I still clearly remember speaking to two Arab oil sheiks in 1970. They had come to tell us that the oil price was going to be raised by 50 per cent, from 1 dollar per barrel to 1.50. At the time, that was enough to upset your whole world view! My point is that this sector has always been confronted with uncertainties. We need leaders with the knowledge and courage to respond to this. At the same time, we need people who have the courage to make decisions based on a long-term vision and good financial-economic principles. This sometimes means sticking out your neck. Looking at how we have been driving change forwards in the past year, I simply know that we have those leaders within Nuon.’

What do you see as an important task for your successor?

‘Due to the unbundling debate, amongst other things, the Dutch energy sector has become too inward-looking; its thinking is too small in scope. We’re still talking about a national champion, but in the wider world they’re talking about a European champion. The challenge for my successor is to upscale Nuon to a European context. How is up to him.’