About this report
The principal objective of this Annual Report is to inform stakeholders (interested parties) about GasTerra's vision and activities. As corporate social responsibility is embedded in the conduct of GasTerra, the company reports on the financial and social elements in a single annual report.
In addition to the financial statemens and the combined audit declaration, the 2017 GasTerra
Annual Report contains other information, i.e.:
- The GasTerra Management Report, in the foreword and in chapters I, II, III and IV;
- The Report of the Board of Supervisory Directors, in chapter III;
- The other information in accordance with Part 9 of Book 2 of the Dutch Civil Code.
The scope of the report is GasTerra B.V., which has its registered office in Groningen. This annual report covers the 2017 calendar year. The report on the 2016 calendar year was published on 16 February 2017.
The financial, operational and social information is incorporated into an integrated report.
- Financial responsibility is in accordance with Part 9 of Book 2 of the Dutch Civil Code.
- Non-financial responsibility is in accordance with the guidelines of the Global Reporting Initiative (GRI) (Standards, Core Level).
We consider it important to be transparent about our activities. We therefore apply the best practices from the Corporate Governance Code and participate in the Transparency Benchmark scheme of the Ministry of Economic Affairs. Our 2016 annual report scored 168 points on this benchmark (2015: 163 points).
Determination of the content (materiality)
The material issues, which are partly determined by the outcomes of the stakeholder dialogue, largely determine the content and limits of our reporting.
For the past few years, an internal methodology has been used for the stakeholder dialogue. In this approach, GasTerra employees, known as ‘relationship managers’, represent one or more stakeholders. They monitor the opinions and preferences of these stakeholders. In 2017 we evaluated this methodology and decided to take a different approach, asking stakeholders for their views directly through a survey. We also held interviews with various stakeholder groups to delve into the key issues in more detail.
The stakeholder groups were redefined this year. Some groups have been renamed, while others have been combined. The media group has been dropped. There are now nine groups in total.
|Stakeholder groups 2016||Stakeholder groups 2017|
|Producers and suppliers||Producers and transport|
|Management and political||National government and market regulators|
|Knowledge institutions||Knowledge and educational institutions|
|Sectoral organisation||Sectoral organisations|
|Neighbours and environment||Regional groups|
|Authority for Consumers and Markets||Dropped as separate group|
When we conducted the previous stakeholder dialogue we noticed that the definitions of the issues was not clear. For that reason we have revised the list. All the issues from last year’s list have been included in the new version, with the exception of the issue of Transparency. This issue is part of all the themes and is regarded as a fundamental value. GasTerra wishes always to communicate as clearly and openly as possible about its activities and objectives, without however undermining commercial interests and the privacy of employees.
The following issues were presented to the stakeholders in 2017.
|Contractual obligation||The extent to which GasTerra complies with its contractual obligations by having enough gas in the portfolio at every point in the year|
|Economic performance||The extent to which GasTerra contributes to the operating result of its shareholders|
|Support for activities||The extent to which GasTerra creates support for its activities|
|Sustainable deployability||The extent to which GasTerra creates a good working environment, with a suitable culture and structure, and encourages employees to develop|
|Sustainable energy supply||The extent to which GasTerra contributes to the sustainable energy supply|
|Compliance with guidelines and frameworks||The extent to which GasTerra chooses to comply with generally applicable guidelines and frameworks, such as GRI, Sustainable Development Goals and ISO norms|
|Internal footprint||The extent to which GasTerra minimises its own environmental footprint|
|Knowledge||The extent to which GasTerra acquires, develops and shares knowledge|
|Involvement in the region
||The extent to which GasTerra is involved in the North Netherlands region|
The new quantitative and qualitative approach to the stakeholder dialogue brings up a number of issues which the stakeholders regard as material for GasTerra because of their economic, ecological or social impact.
GasTerra management has compared the interest which stakeholders attach to the issues with the interest that GasTerra attaches to them. This results in five material issues: contractual obligation, economic performance, support for activities, sustainable deployment and sustainable energy supply. These issues form the basis of the management report. The report is structured so as to contain reports from us on developments in 2017 for each material issue and targets for 2018.
The table below sets out in broad outline how relations with stakeholders are maintained in addition to the stakeholder dialogue.
|Stakeholder group||Example||Interaction via|
|Clients||Energy firms and power plants, industries, export clients||Consultation with account managers, relationship event, periodic client satisfaction survey, 2017 stakeholder dialogue|
|Staff||Works council, trade union||Regular consultation, Intranet, internal presentations, meetings between the works council and management, 2017 stakeholder dialogue|
|Shareholders||Shell Nederland B.V., Esso Nederland B.V., EBN B.V., Dutch State||Shareholders assemblies, Expert consultation, Advisory committee, Audit committee, College of Delegate Supervisory Directors, Supervisory Board, 2017 stakeholder dialogue|
|Producers and Transport||Gas suppliers, GTS||Consultation with account managers, relationship event, 2017 stakeholder dialogue,|
|National government and market regulators||Authority for Consumers and Markets (ACM)||Via Energie Nederland, ad hoc consultation, 2017 stakeholder dialogue|
|Knowledge and education institutions||Hanze College, University of Groningen, New Energy Coalition, Clingendael, CE Delft||Internships, guest lectures, project contributions, stakeholder dialogue 2017|
|Sectoral organisations||Energie Nederland federation, KVGN, Eurogas, VEMW, Nogepa, EFET, EASEE Gas||Periodic consultation, participation in working groups, board membership, Energy podium dinners*, 2017 stakeholder dialogue|
|Social organisations||NBR/Save the Climate, Greenpeace, Nature and Environment Foundation||Energy podium dinners, 2017 stakeholder dialogue|
|Regional parties||Sponsors, regional non-gas suppliers, communities, local government||Relationship event sponsored groups, periodic consultation, 2017 stakeholder dialogue|
* The www.energiepodium.nl website, a GasTerra initiative, was launched in 2010 and has the objective of broadening and deepening the energy supply debate by exchanging views. Over the course of the year, events called ‘energy podium dinners’ are held, in which energy specialists from industry, science, the government, politics and social organisations discuss current issues.
The material issues in 2017 were: position of gas, health & safety, transparency, sustainable or more sustainable products, short-term security of supply and the future of GasTerra. These were used as a basis for formulating targets for 2017. The material issues for 2018 include the aspects which stakeholders and GasTerra considered important among these subjects.
The table below shows the targets for material issues in 2017 and the results achieved.
|Material issue||2017 target||Result|
|Position of gas||GasTerra will carry out the ‘Gas by Design’ proposal of the gas sector.
GasTerra will contribute to the rational transition towards a climate-neutral energy supply:
In 2017 hybrid heat pumps will be installed in more than 100 homes on Ameland, and initial experience with the social, economic and technical aspects of this heating technology will be reported.
In 2017 preparations will be made for installing a fermenter in the Ameland sewage plant.
|GasTerra highlighted the proposal during meetings and in news reports.
In 2017 approximately 100 hybrid heat pumps were installed on Ameland. Experience with the social, economic and technical aspects will be reported in 2018.
With the support of GasTerra, a consortium of companies is working on a plan for a trial plant on Ameland.
|Sustainable or more sustainable products||GasTerra will produce a plan of action to describe how green gas production can be further encouraged, and will together with Gasunie head up a green gas project in the context of ‘Gas as part of long-term sustainable energy management’ (GILDE).
GasTerra expects to buy 70 million cubic metres of green gas for 2017.
|In 2017 GasTerra set up the Green Gas department in order to make a more intensive and focused contribution to the growth of the production and use of green gas.
The GILDE green gas project is still ongoing
GasTerra bought 46 million cubic metres of green gas in 2017.
|Short-term security of supply||GasTerra will comply fully with its contractual obligations and will apply a failure standard of one hour’s failure in 20 years for the security of supply of its portfolio.||GasTerra complied with its contractual obligations.|
|Transparency||GasTerra will aim to achieve a score of between 150 and 170 points on the transparency benchmark when drawing up its annual report.||GasTerra received a score of 168 on the transparency benchmark in 2017.|
|Future of GasTerra||In GasTerra 2018, GasTerra committed to cutting its running costs and FTE headcount. Running costs will remain within (the lower) budget.
GasTerra will meet its financial targets.
|The promised cut in running costs and the number of ftes, as well as the financial obligations, were achieved.|
Management of material issues
CSR is an integral part of the strategy at GasTerra and is therefore embedded into our day-to-day operations. As described in the chapter ‘In dialogue with our stakeholders’ , GasTerra has integrated the materiality matrix and associated objectives and activities into the Business Plan which is approved by the Board of Supervisory Directors. Monitoring of progress and activities is included in the regular reporting cycle and discussed once a month by the College of Delegate Supervisory Directors and the Audit Committee.
|Sickness absence (in %)||The number of calendar days (including weekends) lost due to sickness in the observation period, divided by the number of staff (in full-time equivalents), multiplied by the number of calendar days in the observation period.|
|Average absenteeism rate||The average number of times that an employee reports sick per year.|
|Gas consumption||The gas consumption of the GasTerra offices at Stationsweg in Groningen according to the final settlement from the energy supplier.|
|Electricity||The electricity consumption of the GasTerra offices at Stationsweg in Groningen according to the final settlement from the energy supplier.|
|Water consumption||The water consumption of the GasTerra offices at Stationsweg in Groningen according to the final settlement from the energy supplier.|
|Paper consumption||The paper consumption according to the readings from the supplier of the copy machines.