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

1. WG C3-02 : “Sustainable Development Performance Indicators”SC C3 reportingParis, August 26, 2008

2. 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. Scope of Work (ToR content)

3. Kick-Off meeting during Paris CIGRE session, on September 1st , 2004 2nd meeting in Curitiba (Brasil) on October 20th, 2005 3rd meeting during Paris CIGRE session, on August 28th , 2006 4th meeting in Mossel Bay (South Africa) on October 30th, 2007 Meetings

4. 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)

5. 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 Achievements

6. 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. References

7. 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...) General comments

8. 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...) Curitiba and Paris Achievements

9. 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) Mossel Bay Achievements

10. Major changes on Economic Indicators Small impact on other indicators See Excel file “WG GRIV2 selection vs GRIV3.xls sent in September GRI V2 -> GRI V3 impact on the previously selected indicators

11. 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 GRI V2 -> GRI V3 impact on the previously selected indicators

12. 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 Environmental Indicators Selection

13. 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 Social Indicators Selection

14. 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. Social Indicators Selection

15. 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 Economic Indicators Selection

16. 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 Economic Indicators Selection

17. 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. Final Achievements

18. 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…) Next steps for WG - proposals to SC C3