Eneco has given its annual report quite a quality impulse over the past decade. Using the classic financial report as a basis, we have step-by-step worked on an integrated report that meets all statutory and accounting guidelines for financial reporting and internationally accepted guidelines for sustainable and social performance. In the annual report, Eneco accounts for its financial and non-financial performance. With our integrated annual report, we are preparing to apply the Integrated Reporting Framework that was published at year-end 2013. We publish our annual report online and also offer visitors the same content in a PDF file. We have not had our annual report printed since 2010. Online publication improves accessibility and affords the opportunity to create more cohesion between the topics.
In 2012, a development model was made that gives direction to the central theme per financial year for the coming three years. The central themes for the half-yearly report and the annual report were determined and discussed with the Board of Management. The development of the strategy was the guiding principle in this respect.
The Board of Management determines the strategy. The content of the annual report is created based on a content model that is based on the strategic framework. The premise is that the return and risk must be in balance and that we properly serve the interests of the parties involved in our business. For each KPI linked to our strategic themes, responsibility, definition, scope, calculation, sources and systems needed, process and quality assurance are among the aspects laid down. Agreements have also been reached with regard to reports. The development per PKI is reported periodically and discussed with the boards of the Eneco entities concerned. Where necessary, we make adjustments. With the most important parties involved in our business we discuss the relevance of our strategy and how we can make the chain more sustainable together with our customers, employees, government, partners, suppliers and NGOs. In 2012 we assessed who the most important parties involved in our business were. Based on that assessment, we made a grouping which affords us the opportunity to introduce focus and to choose the right working method. Customers, employees, shareholders, the government and NGOs are the groups that have the greatest impact on our strategy and on whom our strategy has the greatest impact. Suppliers and subcontractors follow closely, because they play an important role in the primary chains in which we are active and for which we want to accept our responsibility (project development, generating, distributing, supplying, and underlying secondary processes).
In 2013, we started up the internal analysis of the materiality of the issues on which we report. Based on the strategic themes, we determined the issues on which we must report. In that respect, we determined the impact on our business (e.g. continuity of the enterprise, reputation and license to operate) and on our direct interested parties (e.g. lower energy costs and availability of energy). G4 indicators have been linked to these topics. We are going to study that analysis more in depth in 2014, both internally and externally by putting this topic on the agenda in the regular dialogues and meetings with the parties concerned. We will subsequently determine the themes on which we will continue to report or on which we will start reporting.
The Board of Management is the owner of the integrated annual report. He delegates the preparation of the annual report to the process manager who manages a multi-disciplinary team. The responsibility for the content of the annual report is divided between the financial department, corporate communications and public affairs.
The financial and non-financial KPIs are an integral part of the planning and control cycle. To that end, we have designed a management system in which we collect the data underlying the KPIs during the year. We discuss the results during the regular business reviews. Risk management is well developed at Eneco and is discussed at length in the annual report.
Based on an accountability index, topic owners from the business and the staff are linked to specific topics. They provide information about the issues discussed in the content model and approve the texts after the final editing. The Board of Management passes on comments in two rounds and approves the final version before it is sent to the Supervisory Board.
Eneco has for several years been reporting on CSR with assurance. For the 2011 and 2012 financial years, we requested Deloitte Accountant B.V. to assess the strategic KPIs and the GRI application level (GRI G3.1 - B). For the year 2013, Eneco will for the first time report according to the GRI G4 guidelines at Core level, while applying the Electric Utilities Sector Disclosures. This year we have furthermore requested for reasonable assurance (instead of limited assurance as in earlier years) for the strategic KPIs (with the exception of the KPI credit rating) and the application of the reporting guidelines chosen.