Nuon Reporting 2007 - Corporate Responsibility - Performance Indicators and Ambitions

Objectives and Ambitions

We use various indicators to measure and assess our CSR performance. Some of these indicators are related to the remuneration of employees and management.

Corporate Responsibility ambitions of Nuon organisation

Long-term ambitions have been formulated for each of the three pillars that Nuon uses for its social policy in order to give direction to our activities and the manner in which we conduct our business. These ambitions provide a framework in the divisions’ business planning process and exclusively act as guidelines. A relationship with the remuneration of employees and management exists insofar as the ambitions served as a basis for performance indicators applied in the dashboards of the business units.

An overview of ambitions and relevant activities is given in the table below.

Corporate Responsibility ambitions of Nuon organisation


Ambition	Effort	Result 2007
Sustainable energy
Prominent position in sustainable generation capacity	Renewable generation capacity in the Netherlands and Belgium	- Opening of Offshore Wind Farm Egmond aan Zee, first Dutch marine wind farm: 108 MW - Opening Offshore Wind farms Echteld and Oudendijk: 12.8 MW - CO2 capture pilot at Buggenum power station
Prominent position in sustainable generation capacity	Investments in innovative renewable energy technology	- Start of construction of Helianthos' pilot solar foil plant - Foundation of Nuon Energy Transition Fund: € 40 million
Prominent position in energy saving and energy efficiency	Adaptation of existing installations to best available technology	- Permit applications based on European IPPC standards
Prominent position in energy saving and energy efficiency		- Permit applications based on European IPPC standards

Responsible operations
Maximum accessability of products and services	Maximise customer satisfaction	- Customer satisfaction the Netherlands: retail customers up from 84% (2006) to 88%; business customers up from 66% (2006) to 78% - Customer satisfaction Belgium: retail customers up from 90% (2006) to 92%; business customers down from 89% (2006) to 88% - Number of received complaints down 28% compared to 2006 (70% compared to 2005) - 86% of received complaints handled within set time limit - Preparations start to implement services for low literates in association with Reading & Writing Foundation
Cleaner own production network	Reduction of NOx and SO2 emissions	- Reduction of NOx emissions at Hemweg power station by 37%
Most reliable network company in the Netherlands	Minimise failures/outage time	- Average number of outage minutes per electricity customer connected by Continuon Netbeheer amounts to 48.4 - Average number of outage minutes per electricity customer connected by Continuon Netbeheer, excluding the outage in the Tieler- en Bommelerwaard area, amounts to 23.5
Sustainability in business processes	Chain Management	- CSR Chain Management Project - Supplier Code of Conduct developed
	Renewable energy use at own facilities	- 100% NatuurStroom at Nuon locations serviced by Facility Management - GreenOffice Programme
	Implementation and (partial) certification of environmental management systems based on recognised standards (ISO 14001)	- One new ISO 14001 certificate achieved - Two new ISO 17025 certificates achieved
Safest working environment in Dutch energy sector	Reinforce safety management based on recognised standards (BEI/VIAGG/VCA)	- Reduction in average LTIF of Energy Sourcing and Network Services from 5.3 to 5.0
Staff composition reflection of society	Promote progression of women to management positions	- Share of women in staff composition in the Netherlands down from 22% to 21% - Share of women in senior management in the Netherlands is 7.4%
Prominent position as attractive employer	Education and Training	- Doubling of number of half-day training sessions per FTE from 1.55 (2006) to 3.6
Prominent position as attractive employer	Recognition as Good Employer	- Second position in Good Employer Index 2007, published by the weekly magazine Intermediair

Community Involvement
Active dialogue with stakeholders in society	Partnerships with Oxfam Novib, Natuurmonumenten, FRES Foundation	- Natuurmonumenten Locations Tiengemeten, de Wieden, Voornes Duin and Veluwezoom: 228 solar panels, 3 heat pumps, 13 water wheels and 2 wind water turbines taken into service
	Development of strategic stakeholder dialogue	- Stakeholder meetings in Groningen in connection with development of Magnum Energy power station in the Eemshaven
	Support for social initiatives around 'energy of the future'	- 'Step2Save': 8 young people in Amsterdam trained as energy saving adviser
Strong community involvement of employees	Nuon Foundation	- Number of voluntarily active employees up from 300 to 600 - Number of projects up from 25 to 50
Most transparent energy company	Sustainability Report based on GRI guidelines	- G3 B-plus level - Participation of Nuon in GRI Electric Utilities Sector Supplement
Most transparent energy company	Top position for sustainability report in Transparency Benchmark of Ministry of Economic Affairs	- Position 16 of 174 in Transparency Benchmark 2006

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Divisional KPIs (Key Performance Indicators)

Alongside its CSR ambitions Nuon has defined KPIs which form part of the divisional dashboards and are monitored in monthly reports. Some of the objectives contain sensitive competitive information and are therefore not quantified.

Key Performance Indicators divisions


Ambition	Target	Result 2007
Prominent position in energy saving and energy efficiency	- Connect large-scale residual heating production to large-scale construction and urban renewal projects, construction of cooling plants at urban offices and industrial locations	- 39 million euros of investments in heating and cooling networks - 7000 new heating connections (household equivalents)
Most sustainable energy network company of the Netherlands	- Reduce CO2 emissions by avoiding gas leaks	- Reduction of 456 ktons of CO2 equivalents gas mains network
Prominent position as Good Employer	- Provide insight into and increase involvement of employees (report mark employee involvement (KPI))	- Involvement from 7.7 in 2006 to 8.0 (10-point scale)
Prominent position as Good Employer	- Minimise absenteeism (rolling annual average (KPI))	- Absenteeism decreased from 4.7% to 4.1 % - New WIA (incapacity) claimants decreased from 19 to 12 employees in 2007

Responsibility Index Board of Management

The Board of Management, acting in close consultation with the Supervisory Board, has set a number of key indicators for the Social Responsibility Index. This contains quantitative objectives for various themes. The targets are formulated as Key Performance Indicators (KPIs) so that the result is tangible and measurable. Since 2007 the Social Responsibility Index are part of the package of objectives that provide the basis for the variable remuneration of the Board of Management and senior management.

Employees also share in the reward for results achieved in the field of CSR performance. Alongside the fixed remuneration arrangements, the size of the profit-sharing for Nuon employees is set annually on the basis of pre-determined criteria. For 2007 the results achieved in respect of the parameters in the Social Responsibility Index are part of the profit-sharing for employees.

Social Responsibility Index of the Board


Ambition	Target	Result 2007
Prominent position in energy saving and energy efficiency	- Total savings is 424 ktons of CO2 equivalents	- Total realised savings is 472 ktons of CO2 equivalents
Prominent position in energy saving and energy efficiency	- Focus: energy saving advice to customers	- Increase in sales of high-efficiency boilers compared to 2006: 10% - Energy advice to customers, sale of green and compensation products
Maximum accessibility of products and services	- Coverage of convenants with Municipal Health Department: 80% of Continuon service area	- Coverage is 87% (13 of the 15 regions)
Maximum accessibility of products and services	- Focus: disconnection policy; minimise number of disconnections	- Four new covenants concluded - Reduction in number of disconnections compared to 2006: 26%
Staff composition is reflection of society	- Participation in Step2Work project is 120 persons from target group - Focus: employment for less advantaged groups in labour market	- Total participation is 151 persons from target group
Safest working environment in Dutch energy sector	- Average absenteeism due to accidents (LTIF) = * Energy Sourcing < 10 * Network Services < 4.5 - Focus: insight into and reduction of accidents due to absenteeism	- LTIF total = 5.0 * LTIF Energy Sourcing = 4.2 * LTIF Network Services = 5.8