Verification Statement

Independent Assurance Statement

Scope and objectives

Two Tomorrows (Europe) Limited has undertaken independent assurance of the RWE npower 2008 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.We were also commissioned to undertake assurance of updates to information published on the RWE npower corporate responsibility internet site, that will occur in the year ahead.The assurance scope excluded financial information taken from annual reporting processes, any data already submitted to regulatory audit or other third party checks, and any information on the ‘Our Power Stations’ section of the internet site.

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.We have no other contract with RWE npower and this is the third 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, Louise Hawson and Anne Euler.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 a customer contact centre to review processes and systems for preparing site level sustainability data and implementation of sustainability strategy;
• 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.

Reporting in the Low Carbon Economy section of the report continues to evolve, and it is encouraging to see progress reporting against the targets set last year for carbon intensity.Last year’s report also described measures taken or planned by the company in an attempt to keep energy prices affordable, stable and predictable.Many of these measures to tackle carbon emissions and energy prices require action by the customer as well as the company, and it remains an ongoing challenge for RWE npower and others in the energy sector to engage effectively with customers on these issues.Although not within the scope of the assurance process, RWE npower’s supplementary internet site www.thebrighterenergydebate.com is a good example of attempts to achieve this goal.

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

• RWE npower has conducted a range of stakeholder consultation activities during the year, including stakeholder engagement days and a series of stakeholder workshops.Whilst it is clear from our assurance work that these events have been used, in addition to other forms of stakeholder dialogue, to inform strategy and decision-making, reporting on the substance of these discussions could be significantly improved.

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

• Whilst previous years Reports have described the company’s ongoing approach to determining material issues, we recommend that future reports provide an update to RWE npower’s assessment of materiality, taking account of the changing sustainability context, evaluating issues against a range of criteria, and showing an integration with the company’s corporate risk management approach.Future reports should also provide more direct links between ‘Our Challenges’ and relevant performance reporting.

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

• Dialogue with stakeholders, including customers and Government, on issues such as support for new renewables, new nuclear and social tariffs, has and will continue to be particularly significant for RWE npower.We recommend that future reports provide further detail on how these discussions have progressed, RWE npower’s response and their implications for the future.
• We recommend that future reports provide greater detail on RWE npower’s approach to supporting vulnerable customers.This should include further information on the rationale and process for decision making, and the significance to the business of these programmes.

Performance information

• We recommend that RWE npower should reconsider its approach to helping readers access performance data and targets, to improve clarity of year on year progress reporting.We also recommend that future reports describe or provide references to more detailed descriptions of methods used by RWE npower to gather and report performance data.

Two Tomorrows (Europe) Limited
London
April 2009

Two Tomorrows was formed from the merger of Csr Network Limited and Sd3 Limited 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