Sustainability Report 2019 - Empower Energy Evolution - Uniper IR
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Sustainability Report 2019
Empower Energy Evolution
Table of contents Diversified generation
8 portfolio
Climate action and Net capacity by country Sweden
security of supply and fuel type (GW)1,2 4.6 GW
1
United
Kingdom
Foreword
22
Russia
6.4 GW
10.8 GW
Hydro
2 Sustainability at Uniper/
Sustainable Development Goals
Our people
Nuclear
Hard Coal
Gas
3 Empower Energy Evolution
Other
Lignite
4 Our material issues/
Materiality Matrix
36
Environmental protection Netherlands
5 How we manage our commitment/
Our sustainability strategy
1.6 GW
Hungary
0.4 GW
48
Germany
10.5 GW
6 Uniper Sustainability
Strategic Plan
Net capacity by fuel type (GW)1, 2 Electricity production by technology (TWh)
Human rights and
7 Governance and
monitoring compliance culture Lignite 3.2
Other 2.8
34.3
Hard Coal 9.8
Nuclear 11.0 103.9
Nuclear 1.4 17.4 Gas 60.2 Gas
GW Lignite 10.1 TWh
63
Hydro 3.6
58
Hard Coal 6.0 Hydro 12.7
Key figures
76
Note: Deviations may occur due to rounding
1
Net capacity as of December 31, 2019 (accounting view)
About this report Stakeholder engagement 2
Excluding net generation capacities from Hydro LTCs in Austria and Switzerland of 564 MW in 2018 and 564 MW in 2019.
Uniper
Sustainability Report 2019 
Foreword
As the new CEO of Uniper, I’m delighted to Europe from 22 million metric tons today to with a new and unsettling challenge: the
present our Sustainability Report to you for carbon neutrality in 2035. Our hydro and coronavirus. We responded swiftly by ar-
the first time. The responsibility we have for nuclear power stations produced around 24 ranging for as many of our employees as
our business, our employees, the environ- terawatt-hours of low-carbon electricity in possible to work from home and by estab-
ment, and society motivated us to set Uniper 2019. That’s equal to about 40% of our total lishing social-distancing and hygiene proto-
on a new course for the new decade and electricity production in Europe. cols for employees in critical roles at our
beyond. And this new course is aligned with trading desks and at our power stations, gas
our views on sustainability. Gas will play a pivotal role in decarbonization, storage facilities, and other industrial facili-
as well as energy security. That’s why gas will ties. Our assets and business operations are
Our strategy is to play a leading role in en- be a key element of our future strategy. We crucial to the energy security of the coun-
abling the decarbonization of the energy in- plan to further expand our broadly diversified tries where we operate. Our business conti-
dustry. And to scale up innovative technolo- gas business and progressively decarbonize it nuity plans and agile response have ensured
gies like green gases and alternative fuels as well. As one of Europe’s largest gas import- their ongoing ability to do so, even in these
that could be crucial for decarbonizing other ers and operators of gas storage facilities, exceptional circumstances.
industries. In short, our purpose is to Uniper will continue to help secure Europe’s
Empower Energy Evolution. energy supply by providing gas and LNG. We’re aware of our responsibility to society
and to you, our stakeholders. We have the
Between now and 2040, global primary Uniper plans to gradually replace conven- right strategy, expertise, people, and capabil-
energy demand will increase significantly. At tional gas with greener gases or hydrogen in ities to support and implement a carbon-free
the same time, carbon emissions must be both energy production and energy trading. future for our customers, for society and for
permanently reduced and the energy supply Also, Uniper is one of the pacesetters in the Uniper, and thereby we Empower Energy
become climate-friendlier. Uniper’s unique use of power-to-gas technology to produce Evolution. We’re eager to take on the chal-
Andreas Schierenbeck
Chief Executive Officer portfolio enables it to be part of the solution green hydrogen. Green gases and the alter- lenges ahead. We hope you join us on this
to this global challenge. We’ve set our native, climate-neutral fuels that can be journey and let us know what you think about
strategic course to substantially increase the made with them could be true game- this report and our strategy for the future.
pace of decarbonization. changers: they’re essentially the only way to
reduce the climate impact of heavy-emitting Andreas Schierenbeck
The plan we published in late January 2020 to sectors – like chemicals, and maritime, air,
exit coal-fired power generation in Germany is and heavy road transport – that have no
one key element of our transformation into a viable alternative to fossil fuels.
climate-friendlier energy provider. It’s an im-
portant milestone in propelling emission re- The start of 2020 presented Uniper, our em- CEO
ductions at our power generation business in ployees, and people all around the world
Uniper
Sustainability Report 2019 1
Sustainability at Uniper: Sustainable Development Goals
our commitment to
Empower Energy Evolution
What makes an energy company ating value for those who rely on us.
sustainable? We believe financial That’s why we’ve geared our corpo-
stability, a shared clear vision, strong rate strategy towards tomorrow’s
relations with stakeholders, and a energy world. We believe this world
commitment to addressing adverse will offer us opportunities to develop
impacts transparently are key. But new businesses and innovative
so is a willingness to adapt and, solutions that will propel the transi-
more importantly, to be a positive tion to carbon-neutrality and support
force for change. That’s why we’ve sustainable development, while add-
pledged to make our power ing value to our company.
generation business in Europe
carbon-neutral by 2035. And to make We generate energy, and we intend
decarbonization integral to our to Empower Energy Evolution. By
strategy and future investments, not steadily decarbonizing our business
only for our European generation and by helping other companies
business but also for our global decarbonize theirs, and, more gener-
commodity business, and for our in- ally, by promoting and supporting
ternational g eneration portfolio. We positive change for our company,
call it E
mpower Energy Evolution. employees, customers, and enter-
prise partners, for the communities
We’re aware that our ability to adapt and countries where we do business,
will be crucial for us to continue cre- and for our value chain. Uniper supports the 17 UN Sustainable
Development Goals (SDGs).
We’ve prioritized nine SDGs that fit with our
business activities and sustainability strategy.
Uniper
Sustainability Report 2019 2
Empower Energy Evolution
changing. To continue our success story and evelopers of large wind and solar farms
d
signal that we understand the challenges of across Europe. Through PPAs already
our time, the people of Uniper need a strong, concluded in 2019, the financing of projects
shared foundation. This foundation is our in Spain and Sweden have been secured. We
An interview purpose, which answers the question “why are also currently examining the commercial
we exist.” framework conditions for entering into the
with David Bryson development, construction and operation of
In the face of energy-demand growth, renewable energy plants.
David Bryson, Uniper’s Chief Operating pragmatism and a willingness to promote
Officer (COO) and Chief Sustainability evolution are required for producing more How will you ensure that Uniper’s coal exit
Officer (CSO) talks about how U niper’s energy while achieving meaningful emission in Germany is fair for the employees and
commitment to Empower Energy reductions. Uniper brings together innova- communities it affects?
Evolution fits with its business, strategy tors, skilled workers, and engineers who are Our announcement of the timeline for our
and corporate culture. propelling sustainable and effective change. coal closures in Germany ended a long
Empowering energy’s evolution toward period of uncertainty for our employees.
carbon-neutrality is the core of our strategy. Around 850 people currently work at our
coal-fired power plants in Germany. As I
David, you recently became Uniper’s Chief chain. That’s why we continue to develop our Uniper has pledged for its power genera- already said, some plants will be converted
Operating Officer and Chief Sustainability relations with Bettercoal as a vehicle for as- tion business in Europe to be carbon- to gas and continue operating. Those
Officer. What do you think are Uniper’s main sessing ESG issues along our supply chain neutral in just 15 years. How does Uniper announced for closure will have to be
sustainability challenges? and to deepen our stakeholder engagement plan to achieve this? dismantled and c onverted to another use or
Yes, I’m very pleased to take on the role of with NGOs, governmental organizations, and We decided to set the pace by pledging to the sites r emediated. That will keep many
CSO and the topic of sustainability, which I communities. make our power generation business in colleagues employed for a number of years.
believe is crucial to Uniper and our world. Europe carbon-neutral by 2035. We’ll get But we’re not fooling ourselves: our coal exit
The immediate and most critical challenge Uniper recently published its purpose and there by steadily decarbonizing our genera- in Germany will affect hundreds of col-
we face is decarbonization. It’s essential that strategy for the decade ahead. What does tion mix. We’ll phase out coal and convert leagues. We’ll work with them, the works
we act now – both as a business and globally Empower Energy Evolution mean for Uniper? some of our coal-fired power plants to gas. councils, and c ommunity leaders to find the
– to tackle climate change, which is why Uniper’s purpose is to Empower Energy And, it’s important to remember that our solution that’s best for everyone.
decarbonization is at the heart of Uniper’s Evolution. Developments like the climate world-class hydro and nuclear assets, which
new strategy. I also believe we need to debate, the exit of several countries from are low carbon, already account for about
continue to strengthen our work in ESG coal-fired power generation, and investors 40% of our output in Europe. Additionally,
governance, due diligence, and risk manage- calling for more responsible business con- we’ll continue to enter into long-term power
ment in our operations and along our supply duct, show that the world around us is purchase agreements (PPAs), with
Uniper
Sustainability Report 2019 3
Our material issues Materiality Matrix
GRI 102-47 * We’ve prioritized nine UN have a significant influence on our
Secure, reliable
Sustainable Development Goals that company and third parties and the
and affordable
are key to our business activities, importance of the impacts for energy supply
GHG emissions
their impact, and our strategy for the understanding our c urrent and Health and
Uniper’s impact on the issue
safety
future. For each of our company- future development. The findings of
Fair and
specific material issues we’ve made the assessment were v alidated and attractive
very high
a number of strategic sustainability approved. employer
commitments and mapped each Stakeholder Diversity and
engagement inclusion
against the nine SDGs. In 2019, we The following materiality matrix
again conducted a materiality provides an overview of the assess- Data protection
assessment. Our approach was two- ment’s findings. The various sections
high
dimensional. We considered the of this Sustainability Report describe Fuels and Governance and
impact of our business activities on our management approach for these by-products compliance
our issues and, conversely, the issues, the progress we achieved in
Innovation
issues’ impacts on our company, the reporting period, and, where Human rights along
medium
the value chain
their business relevance, and the relevant, exceptions to our definition Energy efficiency
energy industry’s influence on them. of materiality.
Environmental
Furthermore, we considered the Water optimization
protection Biodiversity
expectations of important * The report uses the Global
low
stakeholders, such as policymakers, Reporting Initiative (GRI) indicators to Air emissions
competitors, non-governmental or- disclose information on selected Waste
minimization
ganizations (NGOs), and the financial issues; their use is referenced in
market; we analyzed whether from each instance.
their perspective our impacts could
low medium high very high
Issue’s impact on Uniper
Uniper
Sustainability Report 2019 4
How we manage our commitment Our sustainability strategy
GRI 102-11/16/18/19/20 The Uniper SE Man- anagement is part of our overall
m GRI 102-14/16/17 The Sustainability Strategic As part of our new strategy published in
agement Board bears overall responsi- enterprise risk management. In 2019, Plan (SSP) describes how sustainability March 2020, we reworked our SSP to
bility for the adoption and implementa- Uniper refined its ESG risk management supports the Group’s business strategy reflect our new ambitious target – that
tion of Group-wide sustainability process by e stablishing the ESG Task and sets improvement targets for its our European generation business will be
measures, with the Chief Sustainability Force, a cross-functional steering sustainability performance. The material carbon-neutral by 2035.
Officer (CSO) playing a key role. David committee whose purpose is to ensure issues derived from the materiality
Bryson became CSO on January 1, 2020. that ESG risks are adequately identified, assessment are aligned with selected We also decided to make our two
The CSO reports periodically to the assessed, and mitigated. SDG’s and clustered into five impact compliance targets more ambitious. One
Supervisory Board on strategic sustain- areas. In line with the recommendations of the original targets was to train all
ability activities. As Uniper’s highest Uniper’s functional units and subsidiaries of international frameworks, such as the new hires on compliance and the Code of
governance board, the Supervisory have a responsibility to implement HSSE OECD Guidelines for Multinational Enter- Conduct by 2022 by making this training
Board monitors the Group’s fulfillment of and Sustainability Improvement Plans to prises, the SSP is Uniper’s main tool for mandatory. We subsequently expanded
its sustainability obligations. The Man- help implement the Group’s overall HSSE defining and managing appropriate the target’s scope (to train not just new
agement Board has assigned the Health, and sustainability strategy and meet the risk-mitigation and impact-remediation employees but all employees on compli-
Safety, Security and Environment (HSSE) associated objectives. The implementa- measures for each material issue during ance and the Code) and moved the dead-
and Sustainability function the responsi- tion plan for our new strategy includes a specific timeframe. The HSSE & Sus- line forward by one year (from 2022 to
bility for defining Group-wide environ- clear targets and commitments of our tainability function tracks progress 2021). Training will begin in 2020 after
mental, social, and governance (ESG) functional units and subsidiaries to towards the SSP targets on a quarterly the new Code of Conduct is issued.
targets and key performance indicators support the overall Group’s targets for a basis. The results are presented to the
(KPIs) and for identifying ESG risks and carbon-free future. Management Board and all business The other original target was to conduct
emerging topics that could affect Uniper. functions. ESG due diligence of 100% of new
Our employees’ involvement is essential counterparties by 2022. The purpose is to
Our ESG risk management encompasses for achieving a robust sustainability identify effective measures to mitigate
a governance structure, the assignment culture. We strive to encourage their in- counterparties’ main ESG risks. We
of duties and responsibilities, and volvement by continually reinforcing their subsequently extended this target’s
applicable policies. It assesses the awareness of the importance of sustain- scope as well (from new to all active
external and internal ESG risks that could ability for our company, for the countries counterparties) to avoid gaps in Uniper’s
arise from our operations. ESG risk and communities where we operate, and ESG risk assessment.
for themselves as individuals.
Uniper
Sustainability Report 2019 5
Uniper Sustainability Strategic Plan (SSP) SSP impact area Material issues Relevant SDGs Uniper’s commitments Uniper’s targets
• Achieve carbon neutrality for our power
• Monitor and optimize the carbon intensity generation portfolio in Europe by 20351
• GHG emissions
Climate action • Innovation
of U
niper’s generation portfolio.
• Include decarbonization activities as focus
• Maintain a Group-wide carbon intensity
threshold of 500g of CO2 per kilowatt hour
and security of supply • Secure, affordable,
and reliable energy supply
area for innovation. (on average) through 20202
• Promote lower-carbon fuels for energy generation. • Conduct, by 2022, at least 20 projects
whose aims include decarbonization
• Achieve a Group-wide combined TRIF
• Respect labor rights and ensure a safe, healthy,
threshold of 1.0 or below by 20253
and secure work environment for all employees
• Certify 100% of Uniper’s operational
• Health and safety and contractors; promote the same standards
assets to ISO 45001 by 2022
Our people • Fair and attractive employer in Uniper’s joint ventures and partnerships.
• Have women account for 25% of Uniper’s
• Diversity and inclusion • Have zero tolerance of discrimination.
top-level executives by 2022
• Ensure equal opportunity and promote inclusion
• Achieve an employee inclusion indicator
in the entire workforce.
of over 95% by 20224
• Environmental protection
• Promote waste reduction, land pollution prevention,
• Air emissions
and environmentally responsible mining.
Environmental • Energy efficiency
• Biodiversity
• Work with contractors, suppliers, and industrial
• Have no severe environmental incidents
• Maintain certification of 100% of Uniper’s
protection • Waste minimization
customers to adopt a life-cycle approach in order
to protect the environment, use resources e
fficiently,
operational assets to ISO 14001
• Water optimization
and market Uniper’s by-products
• Fuels and by-products
• Have zero tolerance of forced labor, child labor, • Conduct ESG due diligence of 100% of
Human rights and • Human rights along the value chain
• Governance and compliance
modern slavery, and human trafficking. counterparties by 20225
compliance culture • Data protection
• Continue to strengthen Uniper’s compliance culture
and protect the business from corruption risks.
• Train all employees on compliance and
Uniper’s Code of Conduct by 2021
• Actively engage with stakeholders to ensure transparency
and ongoing dialogue regarding U niper’s activities.
Stakeholder • Stakeholder engagement
• Foster the development of effective, accountable,
• At the corporate level, conduct at least
three trust-building dialogues with civil
engagement and transparent institutions at all levels.
• Minimize the impact on communities affected
society organizations each year up to 2022
by Uniper’s operations.
1
Direct Scope 1 emissions. 2 Carbon intensity calculated on average from 2018 to 2020. Group-wide carbon intensity threshold method: electricity generation adjusted to reflect heat and steam production; consolidation approach: financial control.
3
Total recordable incident frequency (TRIF) measures the number of incidents per million hours of work. 4 Employee inclusion indicator: annual employee opinion survey demonstrates that 95% of employees feel included.
5
Within the scope of the Know-Your-Counterparty Business Policy, applied to Uniper Global Commodities, Procurement and Energy Services.
Uniper
Sustainability Report 2019 Climate action and security of supply 6
Governance and monitoring
Policies and commitments The Group strives to work, whenever Uniper's performance in ratings and rankings
GRI 103-2, 102-16/20 Uniper has in place possible, with third parties that have
policies for its material ESG issues which comparable principles. It requires its Our score
are implemented throughout the Group suppliers to sign a declaration of compli- CDP Uniper received a B-, an improvement resulting
and monitored regularly. These policies ance with the Uniper Supplier Code of London-based CDP is a not-for-profit organization that runs a global in a category upgrade (from awareness to
stipulate how the Group addresses these Conduct. Uniper has in place a disclosure system for investors, companies, cities, states, and r egions management) from our previous grade of C.
to manage their environmental impacts. This grade is higher than the Europe regional
issues and how it coordinates the Know-Your-Counterparty Business Leadership (A/A-): Implementing current best practices average of C and lower than the thermal power
cascade effects across the organization. Policy. Its purpose is to enhance existing Management (B/B-): Taking coordinated action on climate issues generation sector average of B. CDP made
processes for identifying, verifying, and Awareness (C/C-): Knowledge of impacts on, and of, climate issues the u
pgrade because of an improvement in our
The HSSE & Sustainability Policy reporting the main compliance risks Disclosure (D/D-): Transparent about climate issues risk management and governance processes.
Statement defines Uniper’s ambitions potentially posed by new counterparties Energy Intelligence’s Top 100 Green Utilities Rank: 81
and priorities for HSSE and sustainability. before business deals are finalized. This ranking of the world’s top green power generators from both (previous: 72)
It provided the framework for developing These risks include corruption, money industrialized and emerging markets is based on companies’ r enewable
the SSP and for evaluating its laundering, terrorism financing, and the energy portfolios and greenhouse gas emissions.
effectiveness. violation of economic sanctions. MSCI ESG Ratings Average BB (previous: laggard B)
Based in New York, MSCI is an independent provider of insights and MSCI based the upgrade on an improvement
Uniper’s Code of Conduct, which is bind- The policies, business directives, and analytics that help investors identify ESG risks and opportunities. in our environmental performance.
ing for all employees, defines basic prin- Code of Conduct are available to all Its seven ESG ratings are grouped into three categories: laggard (CCC, B),
average (BB, BBB, A), and leader (AA, AAA).
ciples of conduct for a wide range of employees.
issues, such as combating corruption ISS-oekom C
ISS-oekom of Munich rates companies’ ESG performance on a scale
and human rights violations. It provides Ratings and rankings
from D- to A+. The prime threshold for the energy industry is B-.
guidance and support for conducting GRI 103-2 -3 and 406-1 We continually monitor
Being at or above the prime threshold indicates that a company is
business and behaving in the workplace our sustainability performance. But it is meeting or exceeding its industry’s ESG performance standards,
in compliance with the law and company always useful to find out how others risks and opportunities. Its seven ESG ratings are grouped into three
rules. Each year, Management Board think we’re doing and to learn from their categories: laggard (CCC, B), average (BB, BBB, A), and leader
(AA, AAA).
members and senior managers sign a feedback. Our sustainability performance
written pledge to adhere to the code. The is rated and ranked by a wide range of Sustainalytics ESG Risk Ratings Relative performance (utilities industry):
Amsterdam-based Sustainalytics rates the industry-specific ESG risks 136 out of 442 (1=lowest risk)
code is reviewed and updated periodical- independent organizations around the
of 9,000 companies worldwide.
ly to ensure appropriateness and world. We continually strive to improve
compliance with company and regulatory our performance. FTSE Russell ESG Ratings 3.3
requirements. An updated version will be Based in London, FTSE Russell assesses the ESG risks of more
than 7,000 publicly listed companies in 47 countries. It issues a score
issued in the second quarter of 2020. of 0 to 5, with a higher score indicating a better performance.
Uniper
Sustainability Report 2019 7
Climate
action and Our European power
generation portfolio: to be
carbon neutral by 2035.
security
of supply
Climate change is one of the world’s biggest challenges
and one of our company’s most material issues. We take
our responsibility for climate protection seriously. Eu-
rope’s energy transition is under way, and we’re actively
shaping it. To help implement the Paris Agreement, we’re
working to help gradually decarbonize the energy system
while s
imultaneously ensuring a reliable energy supply.
Uniper
Sustainability Report 2019 Climate action and security of supply 821% reduction in our
direct carbon emissions
from 2018 to 2019
Commitments
Monitor and optimize the carbon intensity
of Uniper’s generation portfolio
63.3 59.5
Make decarbonization activities a focus
47.0 area for innovation
Promote lower-carbon fuels for
power generation
2017 2018 2019
Targets
Achieve carbon neutrality for our European
power generation portfolio by 2035
Maintain a group-wide carbon intensity
threshold of 500g of CO2 per kilowatt-hour
(on average) through 20201
Conduct, by 2022, at least 20 projects
whose aims include decarbonization
Contribution to the UN SDGs
1
C arbon intensity calculated on average from 2018 to 2020. Group-wide carbon
intensity threshold method: electricity generation adjusted to reflect heat and
steam production; consolidation approach: financial control.
Uniper
Sustainability Report 2019 Climate action and security of supply 9Greenhouse gas emissions
GRI 103-1/2 Climate change is a major challenge. Urgent, con- c riterion is new: all of our future investments will be the future. Decades of experience and existing global part-
certed action worldwide will be necessary to limit global mirrored against our target toward the decarbonization of nerships put us in an excellent position to take a leading role
warming to well below 2 degrees centigrade. It’s also a our b usiness. Reduced hurdle rates, aligned with green in this development in Europe together with our partners.
big challenge for an energy company like us. The energy project criteria, will be implemented into our strategic and
industry, which is among the biggest carbon emitters, will financial decision-making process for projects and invest- GRI 302-2/4 Because gas plays a pivotal role in decarbonization,
need to play an important role in the transition to a carbon ments. Examples for green investments will include as well as energy security, it will be a key focus of our future
neutral future. power-to-gas, utility-scale energy storage, and technologies strategy. We plan to further expand our broadly diversified
like green and blue hydrogen, carbon recycling and the gas business and progressively decarbonize it as well. We’re
synthetic, carbon-neutral fuels and chemicals that will forging ahead with the replacement of coal to gas, at our own
enable c ompanies in other sectors to decarbonize. facilities and those of our customers. We have begun the con-
Our decarbonization strategy: Empower Energy Evolution struction of two new gas turbines and a steam boiler at our
GRI 102-11/12/ 14/15 and 103-2 In late January 2020, we announced Between now and 2040, global energy demand will increase Scholven coal-fired power plant site in Germany. The new gas
our commitment to exit coal-fired power generation in significantly. At the same time, carbon emissions must be and steam plant is to replace the existing plants in the future.
Germany by 2038 at the latest. We took this big step further permanently reduced. Uniper’s unique portfolio enables it to
in March by committing to make our power generation be part of the solution to this global challenge. We’ve set our With Europe’s gas production declining while demand is
portfolio in Europe carbon neutral by 2035. That means strategic course to substantially accelerate decarbonization. expected to remain at about the current level, the need for
going from 22 million metric tons of direct carbon emissions imports will increase. As one of Europe’s largest gas import-
last year to net zero. Both bold commitments are part of a For electricity generation in our International Power busi- ers and operators of gas storage facilities, we’ll continue to
fundamental strategic reorientation focusing on a secure and ness, we are examining how corresponding decarbonization help secure Europe’s energy supply with pipeline gas and
climate-friendlier energy supply. Uniper will gradually reduce solutions can be implemented in the long-term. The planned LNG. Uniper is also engaged in both pipeline infrastructure
its portfolio’s carbon emissions. We will also offer our modernization projects for our Russian gas-fired power (like financing the Nord Stream 2 project) and the expansion
customers products and services that are increasingly plants will make a substantial contribution to increasing of LNG infrastructure (like the floating regasification terminal
climate-friendly. efficiency. These projects will also contribute to securing a planned for Wilhelmshaven).
competitive and climate-friendly electricity supply within the
We plan to invest €2.7 billion in total between now and the framework of the Russian capacity market regulations. In Looking further ahead, we intend to gradually replace
end of 2022, of which €1.2 billion are planned for new growth 2019, we were awarded the contract for the modernization of conventional gas with green gas or green hydrogen in both
projects, some of which have already started. These invest- the Surgutskaya 1, 4 and 6 power plant sites. power generation and energy trading, as green hydrogen can
ments, too, will help make our portfolio steadily cleaner. build the central link between renewable energy production
That’s because all our investments must now meet three In order to make a substantial contribution to the and the use of this energy in the different sectors, such as
criteria. First, as in the past, they must create value for decarbonization of energy systems in the area of global electrical power, mobility and heat. Further development of
Uniper, our employees, and our shareholders. Second, they commodity trading, we are working on developing global additional renewable energy production needs some time.
must of course fit with our core businesses. The third trade in climate neutral gases and other energy carriers in During this ramp-up phase, other technologies for
Uniper
Sustainability Report 2019 Climate action and security of supply 10low-carbon or carbon-free production of blue hydrogen
from gas can be added to the production of green hydrogen.
This can be steam reforming in combination with carbon
capture and usage or storage, as well as splitting of gas at
1,200°C into hydrogen and solid carbon black, which can be
used in various industrial applications.
Uniper is one of the pacesetters in the use of power-to-gas
technology to produce green hydrogen. We began operating
our first power-to-gas unit in Falkenhagen in 2013, followed
by another in 2015 in Hamburg. We added methanization
equipment to Falkenhagen in 2018.
In addition, we partner with refineries and the automobile
industry to conduct a variety of industrial-scale projects that
help accelerate green hydrogen’s economic viability. The
technologies are out there; what has been lacking is
profitability and the right regulatory environment. For Europe
to develop a green and blue hydrogen industry that can
prosper and remain here, it will need to adopt a technology-
neutral, holistic approach. Uniper wants to actively shape the
future of green and blue hydrogen and work together with
industrial enterprises, scientists, and policymakers to propel
development.
One of Uniper’s Hydro
plants in Sweden.
Uniper
Sustainability Report 2019 Climate action and security of supply 11Uniper’s direct carbon emissions
in Europe1
Million metric tons of C02
100
95.34
80
60
40
20
22.14
0
2005 2019
Carbon emissions of our generation business in
1
Europe calculated using the operational control
approach. This means that we counted 100% of the
emissions from all generation assets over which
we have operational control, even if our ownership
stake is less than 100%. These figures do not include Maasvlakte Power Plant
the emissions of Unipro, our subsidiary in Russia. in the Netherlands.
Since the EU Emissions Trading Scheme 500 grams of carbon dioxide per kWh for the heat generation (operational control 19.9 billion kWh. During the same period,
began in 2005, the Uniper Group’s fully period 2018 to 2020. Our average carbon approach) fell by 21% to 47 million metric hydro power production increased by
consolidated companies in Europe have intensity for the period January 1, 2018, to tons (2018: 59.5 million metric tons), mainly 2.4 billion kWh.
reduced their annual carbon emissions by December 31, 2019, was 474 grams of carbon because of a decline in output from coal-
73.2 m
illion metric tons, which is almost dioxide per kWh. We are committed to fired assets in Germany and the United Supporting the energy transition
77%. Our emissions have therefore declined optimizing our carbon-monitoring processes Kingdom, the six-month shutdown of Maas- GRI 302-2/4 and 305-4/5 Several European
further than the current EU climate targets and investing in asset improvement and vlakte coal-fired power station in the Nether- countries in which Uniper has operations
to cut emissions in the EU by at least 40% innovation projects to remain below the lands due to a significant equipment failure, have already decided to phase out coal in
below 1990 levels by 2030. threshold for the three-year period. and the sale of assets in France in July 2019. the years ahead. Our support for decarbon-
ization is firm, but we believe that the
We set a Group-wide annual average carbon In 2019, our direct carbon emissions from From 2018 to 2019, Uniper’s power phaseout and the energy transition should
intensity threshold to remain below the combustion of fossil fuels for power and production from coal declined from 31.8 to generally be orderly, responsible, and fair.
Uniper
Sustainability Report 2019 Climate action and security of supply 12Direct CO2 emissions from fuel combustion by country GRI 305-1
Million metric tons 2019 2018 2017
Russia 24.9 25.3 26.4
Germany 11.1 17.2 16.9
ermany by 40% by the end of 2025. This is
G roducts to gas will rapidly reduce e
p missions
United Kingdom 5.6 7.6 6.2
why, after careful consideration, the German in heavy industry, space heating, and
Netherlands 3.2 5.5 7.9 federal government decided that the country transport. Multi-sector conversion to gas is
France 1.0 2.9 5.1
could decarbonize more quickly by having the fastest and cheapest way for Europe to
Datteln 4 become operational and displace reduce its carbon emissions by up to 65% in
Hungary 0.9 0.8 0.8 the production of older, less efficient the next two decades. Gas will also serve as
Czech Republic 1
0.1Greenhouse Gas Protocol Scope 2 and 3 sustainability performance. We will continue enable us to continue to provide a reliable to further improve this score and trans
GRI 305-2/3 Our Scope 2 indirect emissions our efforts in 2020 and are evaluating supply of energy to customers. parency generally. As part of this effort,
totaled 1.12 million metric tons of CO2 (2018: actions that could further improve our CDP the team will continue to assess w hether,
1.10 million metric tons of CO2) and 1.57 score. The team’s third task is to define Uniper’s and to what degree, the framework for
million metric tons CO2 (2018: 1.67 million future approach to emission disclosures. voluntary climate-related financial risk
metric tons of CO2) using the location-based Climate Action & Strategy Team Transparency is integral to our climate strat- disclosures issued by the Task Force on
method and market-based method, respec- GRI 103-1 and GRI 305-5 Uniper aims to be a egy and will guide this approach. As stated Climate-related Financial Disclosures
tively. Our Scope 2 emissions now include in- pacesetter in decarbonizing the energy it above, Uniper has already improved its (TCFD) could fit with Uniper’s approach
direct emissions from purchased electricity supplies. To help us play this role as CDP score, and the team will explore ways to emission disclosures.
used for pump storage in our hydro plants in effectively as possible, in December 2019 we
Germany. The 2018 figures were also updat- formed a panel of experts, the Climate Action
ed. Our Scope 3 indirect emissions related to & Strategy Team. Led by the HSSE &
extraction and transportation of consumed Sustainability and Corporate Strategy
fuels totaled 8.7 million metric tons of CO2, departments, it brings together representa-
lower than in 2018 (10.3 million metric tons). tives of other departments that are integral
to setting our d ecarbonization course.
A higher CDP score
In 2019, Uniper responded to CDP’s The team’s first task is to carefully analyze
sector-specific climate change question- Uniper’s current emission baseline by
naire, about Uniper’s performance in the geography, fuel type, and emission scope (1,
2018 calendar year. CDP, formerly known as 2, and 3). The next – as part of the implemen-
the Carbon Disclosure Project, runs a global tation of our new strategy – is to identify the
disclosure system for companies to improve various decarbonization options available to
awareness through measurement and us in power generation and commodity
disclosure of environmental data, climate trading and assess their potential impact on
risks, and carbon management. After our carbon footprint, operations, and bottom
evaluating our responses, CDP gave Uniper a line. Bringing these two sets of information
score of B- which is an improvement on the together – detailed emissions data and a list
previous year’s score (C). Scores range from of decarbonization options – will enable the
A (best) to F. CDP raised the score because it Uniper Management Board to set specific
recognized that we had identified and ambitious emission reduction targets per
realized potential for improvement in our business that are economically viable and
Uniper
Sustainability Report 2019 Climate action and security of supply 14How we manage
Innovations innovation
for a low- GRI 103-2/3 and 302-2/4 G4-DMA Uniper develops
innovative, scalable business models in a
carbon future variety of areas. Some of them – like a
flexible power supply, utility-scale batteries,
and other new storage technologies –
demonstrably enhance the energy system’s
ability to add more renewable energy
GRI 103-1 Innovation and cutting-edge sources while maintaining system stability.
t echnologies are crucial to our ability to Although crucial to the success of the energy
Empower Energy Evolution. They make transition, they’re incremental in nature: Employees at
our existing businesses more efficient, they’ll help the energy transition do what it’s Uniper’s power-
to-gas plant in
competitive, and sustainable. Also, they already doing even better. Other technologies Falkenhagen,
enable us to establish new businesses that like green hydrogen and c arbon r ecycling Germany.
we believe could accelerate the transition have the potential to be truly game-changing.
to a carbon-neutral future. That’s why we Because they can do something special: go a
continually track and analyze emerging long way towards making emission-heavy require a lot more renewables. But it will provided by energy storage or conversion is
technologies. Our innovation strategy but hard-to-decarbonize industries – also require many of the technologies able to capture more of this output. We’re
reflects the three pivotal trends that are particularly chemicals, and air, m aritime, mentioned, from utility-scale batteries to pioneering the development of innovative
transforming the energy industry: decar- and heavy-road transport – much cleaner. green hydrogen, in which Uniper is a technologies for both forms of flexibility.
bonization, the decentralization of energy pacesetter. Our innovation portfolio is
generation and supply, and digitalization. Uniper has invested in a number of pilot focused on issues where we can best lever- Converting green energy into green gas
We have the assets and energy IQ to shape projects to refine, scale up, and deploy a age our e xisting capabilities and assets to On particularly windy, sunny days, wind and
these trends in a way that creates value for variety of technologies on a commercial accelerate the transition to a low-carbon – solar farms sometimes have to curtail and
our company and for society. scale. In addition, we’ve set a target of and, ultimately – a carbon-neutral future. even suspend production because of grid
conducting, by 2022, at least 20 projects, the congestion. That’s green energy gone to
main aim of which include decarbonization. New flexibility waste. Power-to-gas (P2G) can help: instead
At year-end 2019, Uniper was working on 12 Flexibility supports the transition to a of taking wind turbines or solar arrays offline
such projects. low-carbon energy world in two ways. First, when the grid is congested, their output can
it balances out the fluctuations in be used to run on-site electrolysis equipment
The European Union and many of its member renewables output; this capability will help that produces green hydrogen, which is then
states have committed to becoming as support the integration of large amounts of injected into the gas pipeline system.
climate neutral as possible by 2050. This will renewables capacity. Second, the flexibility
Uniper
Sustainability Report 2019 Climate action and security of supply 15Uniper employees
at the 2020 E-World
trade fair in Essen.
We’re one of the first companies in the world charging device that can be used whenever hydrogen provides opportunities for
to test and perfect this technology. In a and wherever it’s needed: in the parking areas decarbonizing large industrial processes like
three-year P2G trial in Falkenhagen in north- of outdoor concerts, soccer matches, village steel production through new technologies
east Germany, we produced almost 0.8 fairs, and any event or location where the sit- now based on hydrogen. Green hydrogen can
million cubic meters of hydrogen. We have a ing of permanent charging infrastructure be used in fuel cells to power cars, locomo-
similar plant outside Hamburg. In 2018, we would be uneconomic, unfeasible, or unsightly. tives, and ships. Because fuel cells only emit
modified the Falkenhagen plant so that it can The batteries would be charged with renew- water, not CO2, this would make transporta-
use CO2 captured from a nearby bio-ethanol able electricity, which would be make eMobili- tion dramatically climate-friendlier. Green
plant to transform the green hydrogen into ty even climate-friendlier. Once many of them hydrogen can also be combined with
climate-neutral methane (carbon neutral are in use, we could aggregate them into a captured CO2 to produce climate-neutral
because the CO2 released when it’s large virtual storage system, which would in- chemicals and synthetic f uels, such as
eventually combusted would have been crease our ability to offer grid flexibility ser- synthetic diesel and synthetic aircraft fuel.
released at the bio-ethanol plant). We believe vices. In February 2020 we premiered the de- Our objective is to position U niper as leading
that green methane holds greater promise at vice at the E-World trade fair in Essen, where producer, distributor, and direct marketer of
many locations because it has the same it met with interest from more than 100 poten- green h ydrogen. The process is already
chemical properties as natural gas and can tial customers. We expect to begin field-test- under way: we plan to build an industri-
therefore be stored in unlimited quantities in ing the mobile battery in the third quarter of al-scale, wind-powered green h ydrogen
the gas system. P2G, which promises to the grid. Uniper and RWTH intend to include 2020. plant and an underground hydrogen storage
become even more efficient and affordable the battery in a future project to develop facility near Bad Lauchstädt in eastern
going forward, will make it possible for methods and algorithms for increasing the Making hydrogen more sustainable Germany. We also partnered with BP to apply
Europe to h arness more renewable energy. economic viability of utility-scale batteries. Supplying hydrogen to industrial users like for government funding for an even larger
the chemical industry and refineries is a green hydrogen plant for BP’s refinery in
Big batteries Making eMobility fast charging possible major business with an ongoing growing Lingen in northwest Germany.
An important first is the M5BAT, a u tility-scale everywhere global demand. Today, almost all hydrogen is
battery for on-site storage of surplus As more electric cars take to the streets – produced with fossil fuels. Displacing this Carbon recycling
low-carbon energy production. We Germany wants to have 1 million of them by with green hydrogen produced by Carbon recycling involves transforming a
codeveloped the battery, which is operated by year-end 2022 – public fast-charging renewables-based P2G would dramatically prominent GHG, carbon dioxide, into a
RWTH Aachen University on our behalf. As infrastructure will become increasingly reduce the hydrogen industry’s carbon valuable green resource by capturing it from
the name suggests, the M5BAT uses five important. So far, there isn’t much. Uniper emissions. In fact, renewables based P2G power plants’ exhaust stream or industrial
different battery technologies with a total wants to help close this gap by leveraging its would make it possible to avoid 90% of the processes and using it as a basic material in
capacity of 5 megawatts. The battery’s output expertise in batteries and flexibility. We’re greenhouse gases (GHGs) emitted by the other products. Carbon recycling could bind
is used to balance short-term fluctuations in developing a mobile, battery buffered fast- conventional production of hydrogen. Green large amounts of CO2, thereby preventing it
Uniper
Sustainability Report 2019 Climate action and security of supply 16Scaling up green
12
decarbonization-
evelopment. The latter are cr ucial. Carbon
d
recycling’s potential for reducing net carbon
emissions is huge. But it needs the right
government policies to support the early
stages of its development.
hydrogen
As part of our ambition to become a leader in
green hydrogen, we plan to partner with four
other companies to build an industrial-scale,
wind-powered green hydrogen plant and
focused innovation Using LNG to reduce heavy vehicles’
underground storage facility near Bad Lauchstädt
in eastern Germany. The project would involve
projects underway environmental impact approximately 35 MWel of electrolysis capacity,
With the amount of freight hauled by road which will be owned and operated by Uniper, to
continuing to increase, LNG offers a quick convert renewable electricity from a nearby wind
and efficient way to make heavy vehicle farm into green hydrogen. The hydrogen, which
from entering the earth’s atmosphere. And traffic more sustainable. Trucks that run on would be stored in a modified salt cavern
using CO2 from power generation to produce LNG emit less CO2, nitrogen oxide, and operated by one of our project partners, is
chemicals and fuels that otherwise would’ve particulate matter than diesel-powered planned to be piped to neighboring chemicals
been produced using fossil fuels will avoid trucks. They’re also much quieter. In view of enterprises and utilized for urban mobility solu-
millions of tons of emissions. For our own these advantages, we’re drawing on our tions. The cavern would be able to store nearly 50
plants, we’re identifying neighboring expertise in LNG supply to establish a million cubic meters of hydrogen, enough to heat
companies that need CO2 for their production business in LNG truck fueling. about 20,000 households annually. It would be
processes – like the large complex of Europe’s first underground hydrogen storage
greenhouses that will receive heat and CO2 Liqvis, a Uniper subsidiary, is currently facility and the first in the world for storing green
from Berezovskaya 3, one of our generating establishing a network of filling stations for hydrogen. The project has been short-listed for
units in Russia, which will make “greenhouse LNG-powered heavy-duty trucks. In 2017, funding under Real-World Laboratories for the
gas” a literal term. Uniper is also actively Liqvis was awarded funding under the EU’s Energy Transition, a program run by the Federal
engaged in developing carbon recycling Connecting Europe Facility for Transport Ministry of Economics and Technology. The minis-
businesses and partnering with other program to develop more LNG filling try is expected to make the final decision by early
companies to c reate a global carbon stations. The first fixed filling station opened 2021. If awarded funding, the hydrogen plant
recycling industry. We’re a founding m ember in Berlin in November 2018. Liqvis currently could be fully operational in around 2.5 years.
of CO2 Value E
urope, an industry initiative to also operates mobile filling stations in Ulm
promote the development of a Europe-wide and in Kassel. Two more fixed installations
carbon-recycling industry and relevant (one in France, the other in Germany) will
An employee at
technologies and to advocate e nergy policies become operational in the first and second Karlshamn Power
and regulations that would s upport this quarter of 2020, respectively. Plant in Sweden.
Uniper
Sustainability Report 2019 Climate action and security of supply 17Secure, affordable,
and reliable
energy supply
GRI 103-1 A secure and reliable supply of energy is essential
for the functioning of society and a competitive economy.
Uniper’s priority is to provide a secure, affordable, and
reliable supply of power, gas, and heat to its customers,
while simultaneously making this energy progressively
climate-friendlier. To manage the operating risks of its
generation assets and to promote their availability, Uniper
has an integrated asset and HSSE management system
that conforms to industry practices.
Uniper’s long-term gas supply contracts, natural gas storage
facilities, global gas trading activities, and capacity for
regasifying liquefied natural gas (LNG) play an important role
in supply security, especially when demand fluctuates.
Furthermore, Uniper’s flexible generation facilities can
respond quickly to fluctuations in renewables output, which
is important for grid stability and supply security in several
regions in Germany and elsewhere.
Öresundsverket
Power Plant in
Malmö, Sweden.
Uniper
Sustainability Report 2019 Climate action and security of supply 18How we manage our generation fleet
GRI 103-2/3 G4-EU10 We own We periodically upgrade the Our power generation fleets in We investigate each case of
and operate 34.3 GW of technology and processes at Europe and Russia had an equipment failure carefully
generating capacity in our assets so that we average asset availability of to determine the causes, so
Europe and Russia. This continue to ensure high rates 79.1% in 2019, which was that we can prevent similar
fleet is highly efficient, of availability and efficiency roughly unchanged from 2018. problems at other plants and
flexible, and diversified. Our and prevent unplanned Their unplanned unavailability keep our fleet’s availability
largest asset positions are downtime. Some of these was 12% in 2019, a slight high.
in Germany, Russia, the upgrades also improve our increase from 2018 (11.6%).
United Kingdom, Sweden, assets’ climate performance. The main reasons were Our decades of experience in
and the Netherlands. We high-pressure turbine damage plant management enables
divested our operations in Uniper’s key performance and more boiler-tube leakages us to keep our generation
France in July 2019. In indicator for supply reliability than expected, especially at fleet running smoothly,
addition to producing is average asset availability. relatively new power plants. which helps ensure a r eliable
electricity and providing
stability to the grid, many
of our plants supply heat,
process steam, compressed
air, and other products to
Uniper Group: Consolidated Generation Capacity as of December 31, 2019
nearby industrial enterpris- in MW Gas Coal Hydro Nuclear Other Total (by country)
es and utilize some of these
Russia 1
8,517 2,263 - - - 10,780
enterprises’ waste streams.
Germany 3,333 3,802 1,991 - 1,418 10,544
United Kingdom 4,188 2,000 - - 221 6,409
Sweden 447 - 1,579 1,400 1162 4,588
Netherlands 526 1,070 - - - 1,596
Hungary 428 - - - - 428
France - - - - - -
Total (asset specific) 17, 439 9,135 3,570 1,400 2,801 34,345
1
Figures include the Czech Republic.
Uniper
Sustainability Report 2019 Climate action and security of supply 19How each of our fuels
supports supply security GRI 103-2/3
power supply in the countries rojects. These services
p Gas Uniper and SOCAR formed a joint venture
where we operate. We enable our customers’ In January 2019, Uniper was awarded a to promote energy efficiency. The joint
market this experience in power plants to meet high contract to build a gas-fired power plant venture’s first project was to upgrade and
emerging and developing international standards with a capacity of 300 MW in Irsching expand the power and steam generators at
countries, providing for o perational excellence, near Ingolstadt, Germany. The new power a SOCAR chemical complex located about
operation and maintenance including availability. That plant will serve as a safety cushion to 30 kilometers north of Baku. In November
services for power plant means we’re helping supply p ower at short notice in emergency 2019, Uniper and SOCAR representatives
operators, and support for improve supply security in circumstances when system reliability is at signed a collaboration initiative to deepen
new energy infrastructure other parts of the world, too. risk. A high degree of operational flexibility the two companies’ partnership.
will make it ideal for balancing out
intermittent wind and solar power, which In addition, Uniper has stakes in gas trans-
Average Asset Availability for Conventional accounts for a steadily increasing proportion mission pipelines (such as OPAL, which runs
Power Generation by Country of Germany’s generation mix. The plant, from the Baltic Sea to the German-Czech
which is scheduled to be operational by border) and finances projects to build them.
Percentages 2019 2018
October 2022, will support the transition to a These assets provide important pathways
France 79.7 76.3 low-carbon energy supply. for the import and transport of gas and
Germany 77.4 77.2
therefore play key roles in ensuring Europe’s
Uniper procures natural gas from a variety supply security.
Hungary 96.9 95.9 of producers in several countries, mainly
Netherlands 56.1 75.4 Russia, the Netherlands, and Germany. In Along with pipeline gas, Uniper purchases
2020, to provide customers in Europe with a LNG and has stakes and long-term capacity
Russia 79.2 77.1
more d iversified gas supply, Uniper will bookings at several LNG terminals in Europe.
Sweden 91.1 86.8 begin to procure gas from Azerbaijan. Under In addition, Uniper and Mitsui O.S.K., a
United Kingdom 83.2 83.0 a long-term contract concluded in 2013 with Japanese maritime transport company plan
Baku-based SOCAR (State Oil Company of to build and operate a floating storage and
Total 79.1 79.0
the Azerbaijan Republic), Uniper will source regasification unit (FSRU) in the port of
Availability is equal to 100% minus planned and unplanned unavailability. Uniper up to 1.5 billion cubic meters (bcm) of natural Wilhelmshaven, Germany. This unit could
Group figures are volume-based weighted averages. They refer to Uniper’s current
operational portfolio and is based on the proportion of our stake in an asset (2018 gas per year via the Southern Gas Corridor store 263,000 cubic meters of LNG and send
figures adjusted). Assets in France are included from January 1 to June 30, 2019. (SGC), a system of pipelines that connects out 10 bcm of gas per year. The FSRU would
the Caspian region and the Middle East to supplement the large onshore regasification
Southeastern Europe. SGC opened in May terminal planned for Wilhelmshaven. It could
2018. As part of this arrangement, in 2016 source large quantities of LNG from around
Uniper
Sustainability Report 2019 Climate action and security of supply 20You can also read
