Independent Assurance Statement

Scope and objectives

RWE npower commissioned Two Tomorrows (Europe) Limited to undertake independent assurance of its 2009 Corporate Responsibility Report as published at www.rwenpowercr.com.  

The assurance process was conducted in accordance with AA1000AS (2008).  We were engaged to provide Type 2 assurance, which covers

  • evaluation of adherence to the AA1000APS (2008) principles of inclusivity, materiality and responsiveness (the Principles); and
  • reliability of specified sustainability performance information. 

The performance information included in scope was all data and claims in the report, with checking processes prioritised according to materiality with the following exclusions: financial information taken from annual reporting processes and any data already submitted to regulatory audit or other third party check. We based our prioritisation on the materiality of issues at a consolidated corporate level.  
We used the Global Reporting Initiative (GRI) Quality of Information Principles as Criteria for evaluating performance information.

Responsibilities of the directors of RWE npower and of the assurance providers

The directors of RWE npower have sole responsibility for the preparation of the Report.  In performing our assurance work, our responsibility is to the management of RWE npower, however our statement represents our independent opinion and is intended to inform all of RWE npower’s stakeholders including the management of RWE npower.  We were not involved in the preparation of any part of the Report.  In addition to this contract, we have provided verification of RWE npower’s submission to the Green Energy Supply Certification Scheme. This is the fourth year that we have provided assurance for RWE npower.  We adopt a balanced approach towards all RWE npower stakeholders.

Our team comprised Jon Woodhead, Dave Knight, Anne Euler and Vicky McAllister. Further information, including individual competencies relating to the team can be found at: www.twotomorrows.com

Basis of our opinion

Our work was designed to gather evidence with the objective of providing moderate assurance as defined in AA1000AS (2008).  We undertook the following activities:

  • Review of the current sustainability issues that could affect RWE npower and are of interest to stakeholders;
  • Interviews with selected directors and senior managers responsible for management of sustainability issues and review of selected evidence to support issues discussed;
  • Review of information provided to us by RWE npower on its reporting and management processes relating to the Principles;
  • Site visits to the teams responsible for the vulnerable customers programmes and to a vulnerable customer who has benefited; to review processes and systems for preparing vulnerable customers sustainability data and implementation of strategy in this area;
  • Review of supporting evidence for key claims in the report;
  • Review of the processes for gathering and consolidating data and, for a sample, checking the data consolidation.

Findings

We reviewed and provided feedback on drafts of the Report and where necessary changes were made.  On the basis of the work undertaken, nothing came to our attention to suggest that the Report does not properly describe RWE npower’s adherence to the Principles or its performance.

Observations

Without affecting our assurance opinion we also provide the following observations.

The report provides improved coverage of customer service, pricing and billing issues, which are recognised to be of material concern to stakeholders. The separate ‘Brighter Energy Debate’ website is an excellent example of a new way to engage customers on these issues.  Even though reporting on customer service, pricing and billing issues has improved, a number of challenges remain. It will take time before it becomes clear whether improvements to billing and pricing information, as well as to customer services, result in improved customer perceptions.  We recommend that next year’s Report should include analysis of the impact of these changes on customer perceptions. 

Inclusivity concerns the participation of stakeholders in developing and achieving an accountable and strategic response to sustainability.

  • RWE npower has systems in place for internal stakeholders to participate in the development of the organisation's response to corporate responsibility issues, particularly through the Corporate Responsibility Committee and the Health and Safety Review Committee, both of which benefit from having independent external Chairmen.  We recommend that greater transparency should be given to the decisions of these Committees.  
  • RWE npower has improved coverage on the nature and content of its stakeholder engagement processes and how the outputs of these have informed strategy and decision-making.  We understand that RWE npower plans to introduce a Customer Council, including external representation.  Future reports should make clear how this additional channel of involvement of customers has helped to shape the company’s approach to key issues.

Material issues are those which are necessary for stakeholders to make informed judgments concerning RWE npower and its impacts.

  • We believe that the Report covers the issues of greatest materiality to enable stakeholders to make informed judgements. We recommend that RWE npower should explore ways to include additional information on pricing in future reports.
  • The report includes information on the company’s work to formalise a materiality determination process.  This process should guide RWE npower in determining which issues to focus on in the CR strategy and which issues to cover in the report.  We recommend that this process should be strengthened through regular review by the Corporate Responsibility Committee, and inclusion in future reports of information on the criteria used, internal and external stakeholders consulted, and changes to the material issues during the year.

Responsiveness concerns the extent to which an organisation responds to stakeholder issues

  • There are clear arrangements in place at corporate and local levels for responding to stakeholder expectations and concerns on material issues. There are many useful case studies and good coverage of positive initiatives and performance relating to stakeholder issues. The expansion of the power station performance pages is an improvement and provides useful information for local stakeholders.  To enhance the balance of information, further detail on the reasons why RWE npower or other stakeholders are dissatisfied with specific areas of performance should be provided.
  • As emphasised in the CEO Q & A section, it is becoming increasingly clear that collaborative working and dialogue between energy companies and their stakeholders needs to increase. This will improve awareness and understanding of the opportunities and constraints in how we will meet our future energy needs.  The challenge remains for RWE npower and all other energy companies, to find new and more effective ways to explain to customers and wider society how their chosen investment strategy achieves a balance between commercial and regulatory imperatives and sustainability challenges.
  • The Report includes enhanced coverage of RWE npower’s activities to support education initiatives.  This content reflects wider stakeholder views that new skills are needed to enable the necessary changes to achieve a low carbon future.

Performance information

  • This year’s Report includes a new set of ‘strategic targets’. To enable stakeholders to view comparable information, we recommend that current performance and future targets are presented alongside comparable performance over recent years.  We have not seen evidence of a clear rationale and process for setting new performance targets and key performance indicators.  We recommend that this process should be reported on in next year’s Report, and improved where necessary, for example to make clear where RWE npower is aiming to exceed regulatory requirements.
  • RWE npower has identified the data protocols it has used and provided definitions of indicators reported.  This enhances the accuracy and comparability of the report and we recommend that RWE npower continues to enhance the level of detail provided.

Two Tomorrows (Europe) Limited
London
March 2010



Two Tomorrows (Europe) Limited trading as Two Tomorrows was formed from the merger of Csrnetwork and Sd3 in January 2009, Two Tomorrows is an international consultancy that helps companies to perform better and create value by doing business in a sustainable way.  www.twotomorrows.com

 

TwoTomorrows