Method, criteria, and assumptions of impact measurements
The Accountability Document Impact Analysis Enexis Holding N.V. can be downloaded from our website and provides more insight into and a more detailed substantiation of the information included in the annual report.
Financial capital
The financial impacts are calculated based on Enexis's income statement and cash flow statement. This includes Enexis's incoming and outgoing cash flows. Enexis's outgoing cash flows have a positive effect on stakeholders and Enexis's incoming cash flows have a negative impact on stakeholders. The financial capital shows the cash flows and how these are allocated among our stakeholders.
Manufactured capital
The availability of energy largely determines the prosperity and well-being of our customers. With the transmission of gas and electricity, Enexis plays an important role in making this value possible. The amounts shown as manufactured capital pertain to the share in the energy chain that can be attributed to Enexis. The value of energy is more than the price that consumers pay for energy. We call this consumer surplus: the higher price that customers would, in theory, be willing to pay above the actual price of a service or product. The consumer surplus is, at present, the most common and most used method for determining the economic value for both the unregulated and the regulated markets. The consumer surplus concerns all price elements in the energy chain and comprises the taxes and prices for the distribution and transmission of energy.
Within the contribution of electricity transmission to well-being, the impact of Enexis making feeding electricity back into the grid possible is taken into account.
The average impact of gas and electricity outages for the Netherlands was also taken into account. The impact of gas and electricity outages at Enexis compared to the average in the Netherlands was calculated.
We also estimate the value of electricity and gas transmission for business customers; however, it should be noted that the method for this is still being developed; to avoid double counting this only consists of the revenue part.
Natural capital
Enexis is partially responsible for the CO2 emissions of the volumes of electricity and gas that are transmitted via our grid. The impact contains the value of the CO2 emissions in connection with the direct activities and that of the chain. The impact calculations of the direct activities are based on the CO2 figures as reported in the CO2footprint in the annual report. The assumption is made that the electricity and natural gas mix of the energy transmitted by Enexis is the same as the national mix. The societal costs of one ton of CO2 equivalent have been determined at 0.163 EUR/kg CO2 equivalent.
Emissions in the chain are attributed to Enexis based on gross added value and responsibility. Enexis emits greenhouse gases when carrying out its activities, this concerns, for example, its buildings and mobility. As far as operations are concerned, in particular the gas and electricity grid losses result in a lot of emissions. This concerns scope 1 and 2 emissions as set out in the Greenhouse Gas Protocol. However, the largest impact comes from Enexis's share in the emissions of the Dutch energy chain.
Human capital
Employees who are in the direct employment of Enexis are taken into account for the calculation of these impacts. As an employer, Enexis aims to contribute positively to the well-being of its employees. Well-being effects as a result of being employed are calculated in relation to being unemployed in the Netherlands. The indicator concerns the non-financial direct well-being effect. The assumption is made that employee satisfaction, measured based on the outcomes of the employee satisfaction survey, has a direct positive effect on well-being.
The value of work for employees is more than only the income that they receive. People who have a job generally experience a higher feeling of well-being than people who do not have a job. In addition to income, immaterial factors such as appreciation, contact with colleagues and customers, and having a job are of importance.
For the development of employees, we look at the creation of human capital as a result of experience gained and training. This is measured based on carreer progression opportunities within the organization and the corresponding increases in salary. The total increase in human capital is attributed to Enexis and future employers based on age, retention percentages and retirement age.
Furthermore, there is compensation in the form of salary and secondary employee benefits; this compensation is included under financial capital.
The calculation of the impacts of work-related absenteeism and accidents of employees (safety) is limited to direct impacts. An accident or illness can lead to other accidents or illnesses, which is not measured. The assumption is made that absenteeism that has been determined to be not ‘work related’ is not related to the work at Enexis.
Most important impact measurement criteria
Enexis quantifies one or several indicators for the capitals Financial, Manufactured, Natural and Human. In the coming years, Enexis will work further on quantifying the other capitals. Impacts are quantified by estimating the sum of the individual effects on prosperity and well-being and expressing this in euros. The method used for the calculation of the impacts is based on the Impact Measurement Infra Companies Manual. It is taken into account that Enexis operates in a regulated market and is part of a broader value chain, to which the contribution of Enexis is attributed by means of attribution factors. Impacts for which several players in the chain are responsible are attributed to Enexis based on two elements: (i) Enexis's responsibility in the chain and (ii) Enexis's gross added value in the chain. The gross added value is calculated as the revenue less the use of products (such as goods and services) in the production process, valued at purchase prices. Impacts that Enexis realises independently are attributed fully to Enexis.
Our model and the methodology for impact measurements are laid down in the Manual measuring impact infra companies. This was updated at the initiative of the sector. We use the Framework for Impact Statements (FIS) and the Integrated Profit & Loss Assessment Methodology (IAM) ‘core’ as a scientific framework for the impact measurements. All three publications are published by the Impact Institute.
Changes compared to previous years
As of the reporting year 2023, the reporting on human capital was extended with the development of employees. Comparable figures over 2022 were also included for this.