AES UK & Ireland 2014 Sustainability Report

AES UK & Ireland 2014 Sustainability ReportTA

BLE OF C

ON

TENTS

TABLE OF CONTENTS

Statement from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Report Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Organisational Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The AES Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 AES UK and Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Financial Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Operational Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Availability, Reliability and Access to Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Cybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Disaster/Emergency Planning and Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Environmental Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Air Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Direct Greenhouse Gas (GHG) Emissions, Scope 1 and Scope 2 . . . . . . . . . . . . . . . . . . . . . 19 Scope 3 Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 NOx, SO2 and Other Air Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Reduction of GHG and Other Air Emissions – . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Energy Efficiency for Our Customers Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Water Withdrawal and Discharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Effluents and Byproducts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Coal Combustion Products (CCPs) Generation, Reuse and Recycle . . . . . . . . . . . . . . . . . . 22 Spills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Impact On Education And Living Standards In Our Communities . . . . . . . . . . . . . . . . . . . . . . . . . 26Our People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Diversity and Equal Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Occupational Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Health And Safety Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Health And Safety Training And Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Behavioural Based Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Health And Wellness Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Training and Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Index Of Figures and Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

3 back to table of contents

AES UK & Ireland 2014 Sustainability ReportSTATEM

ENT FRO

N TH

E PRESIDEN

T AN

D C

EO

To Our Stakeholders,

Our mission is to improve lives by providing safe, reliable and sustainable energy to every market we serve. We believe it is our responsibility to provide energy solutions that support a sustainable social, economic and environmental future.

I started as President of The AES Corporation’s UK & Ireland business in October 2014, taking over from Mark Miller, who led AES in this market from 2009. I am pleased to share in this report some of our progress and achievements for 2014.

Going forward, the foundation we have built in 2014 will allow us to continue to meets our stakeholders’ needs, maintain AES as an integral part of Northern Ireland’s energy system, and expand from our existing platform into the wider UK and Ireland markets.

Achieving Our Objectives

In 2014 we made meaningful progress towards our long-term strategic objectives, laying the foundations for a year of significant maintenance, upgrades and innovation in 2015.

As a company with a commitment to environmental improvement, we were pleased to win a competitive tender from the System Operator for Norther Ireland (SONI) for additional capacity to support security of supply from 2016. This three year contract (with the option at SONI’s discretion to extend for a further two years) was announced in November 2014 and has enabled AES to upgrade Ballylumford Power Station’s B Unit to be fully compliant with the new Industrial Emissions Directive limits for both Nitrogen Oxide (NOx) and Sulphur Dioxide (SOx), achieving a threefold reduction in emissions. The 250 MW additional capacity will help SONI to ensure vital security of electricity supply to consumers and businesses in Northern Ireland.

In November we were proud to be hosted by the Northern Ireland Assembly’s All-Party Group on Science and Technology for an Energy Storage Seminar in Stormont. AES senior leaders were joined by Arlene Foster MLA, former Minister of Enterprise, Trade and Investment, to discuss proposals for a 100 MW battery energy storage project adjacent to Kilroot Power Station. The first 10 MW phase was confirmed in early 2015, building on the momentum created at this seminar for Northern Ireland to lead the energy storage agenda.

STATEMENT FROM THE AES UK & IRELAND PRESIDENT


AES UK & Ireland 2014 Sustainability ReportSTATEM

ENT FRO

N TH

E PRESIDEN

T AN

D C

EO

Building a Sustainable Future

For AES people, how we accomplish our successes and deliver electricity is as important as the services we provide. Ethics, integrity and compliance are the foundation and principles that guide our company and our people. In 2014, AES was recognised as one of the World’s Most Ethical companies by the Ethisphere Institute for going beyond making statement about doing business ethically and turning words into action.

In the UK & Ireland market, we made very good progress on another of our long-term corporate objectives set in late 2011: to reach the top quartile in sustainability. AES was invited to participate in Business in the Community Northern Ireland’s CORE corporate responsibility standard. AES is the first ever organisation to be awarded CORE’s Silver Certification, which is benchmarked against the performance of other companies in Northern Ireland.

AES is the first ever organisation to be awarded CORE’s Silver Certification

Safety is our number one company value, and this year AES was recognised for excellence in this field with a Royal Society for the Prevention of Accidents (RoSPA) Gold Medal for International Safety.

As the All Island Electricity System approaches an important inflection point with the move to full in 2017, AES UK & Ireland looks forward to continuing to provide safe, reliable and sustainable energy solutions. We look back with pride on our continued progress on many fronts in 2014.

Carla TullyAES UK & Ireland President



Stakeholder Engagement

Impacts On Education and Living Standards in Our Communities Public Safety

Our People

Diversity and Equal OpportunityOccupational Health and SafetyTraining and Education

REPORT H

ILIGH

TS

MATERIAL ASPECTS HIGHLIGHTED IN THIS REPORT

The report has been prepared in accordance with the recommendations of the Sustainability Reporting Guidelines, version 4.0, of the Global Reporting Initiative (GRI Guidelines). The GRI is the de facto globally accepted standard for reporting sustainability activities.

AES UK & Ireland has prepared the report in accordance with the criteria listed under the “core” option and included responses to guidance specifically for Electric Utility Sector Disclosures. We have also responded to several aspects and disclosures listed under the “comprehensive” option.

GRI encourages businesses to focus on the “material aspects” which impact and are impacted by our business practices. This report is structured to present the following “material aspects” within the context of The AES Corporation’s five global strategic initiatives.

Financial Excellence

Economic Performance

Operational Excellence

Availability, Reliability and Access to ElectricityCybersecurityDisaster/Emergency Planning and Response

Environmental Performance

Air EmissionsWaterEffluents and ByproductsBiodiversity


AES UK & Ireland 2014 Sustainability ReportO

RGA

NIZATIO

NA

L PROFILE

The AES Corporation (NYSE: AES) is a Fortune 200 global power company that was founded in 1981. The company is headquartered in Arlington, Virginia, USA and is a publically traded global power company incorporated under the laws of Delaware, governed by a Board of Directors.

We provide affordable, sustainable energy to 18 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 18,389 people is committed to operational excellence and meeting the world’s changing power needs. Our 2014 revenues were US $17 billion and we own and manage US $39 billion in total assets.

We are dedicated to improving the lives of our customers by leveraging our energy solutions that encompass a broad range of technologies and fuel types, including coal, diesel, gas, oil, pet coke and renewables. Our people share a passion to help meet the world’s current and increasing energy needs, while providing communities and countries the opportunity for economic growth due to the availability of reliable, affordable electric power.

The company is organized in six Strategic Business Units (SBUs):

• Andes: Chile, Colombia and Argentina • Asia: Vietnam, Sri Lanka, India and the

Philippines • Brazil: São Paulo and Rio Grande do Sul • Europe: Bulgaria, Jordan, Kazakhstan,

Netherlands and the United Kingdom • MCAC (Mexico, Central America and the

Caribbean): El Salvador, the Dominican Republic, Mexico, Panama and Puerto Rico

• US (United States of America): California, Hawaii, Indiana, Maryland, Ohio, Oklahoma, Pennsylvania, Texas and West Virginia

ORGANISATIONAL PROFILE – THE AES CORPORATION

Figure 1: Scale of The AES Corporation.

* Additional financial information is located in The AES Corporation’s 2014 Annual Report and 10-K.

34,732 MW capacity

95,691 Utility GWh

98,009 GWh energy delivered

102 Generation Facilities 8 Utilities

18,389 Employees

Net Revenue: US $17.1 billion

Total Assets: US $38.9 billion

Beneficial Owenership:9.3% T. Rowe Price Associates, Inc.

8.7% BlackRock

8.5% CIC

7.4% The Vanguard Group

5.1% Robeco

18 Countries

http://www.aes.com/files/doc_financials/annual/2014/2014-AR-Form-10-K.pdf



RGA

NIZATIO

NA

L PROFILE

Within the six SBUs, we have two primary business lines. The first business line is generation, where we own and/or operate power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The second business line is utilities, where we own and/or operate utilities to generate or purchase, distribute, transmit and sell electricity to end-user customers in the residential, commercial, industrial and governmental sectors within a defined service area. In certain circumstances, our utilities also generate and sell electricity on the wholesale market.

AES is the world leader in battery-based energy storage, with 114 MW in operation or under construction.

• AES has the most comprehensive and accomplished fleet of battery-based energy storage in the world.

• Energy storage can serve as a replacement resource, to absorb existing generation energy

• AES Advancion is a complete battery-based grid resource offered to utility companies and renewable developers.

• Tailored to specific market needs in terms of power and duration.

34,732 Gross MW in Operation

Figure 2: Total MW by Fuel type.

5%24%

33%

38%

Renewables

Natural Gas

Coal

Oil, Deisel and Pet Coke

Figure 3: Total MW by SBU.

23%36%

9%9%

19%

4%

US

MCAC

Brazil

Asia

Europe

Andes



RGA

NIZATIO

NA

L PROFILE

We are committed to operational excellence and meeting the power needs of the people of the United Kingdom and Ireland by using our unique electricity platforms and the knowledge of our people to provide the energy solutions our customers truly need.

AES brings its global capability to meet the needs of energy users in the UK and Ireland. Building from AES’ current platform, which provides critical energy and capacity to Northern Ireland and the All-Island Electricity System, we are bringing innovative solutions to move the sector toward the future.

AES UK & Ireland is Northern Ireland’s largest electricity generator, owning and operating the Ballylumford and Kilroot Power Stations, both in Mid & East Antrim. In 2014, we provided 11% of energy generation capacity across the All-Island Electricity System.

AES is committed to Northern Ireland as a place to invest and do business in: Kilroot Power Station was The AES Corporation’s first acquisition outside of the USA, in 1992.

Our Northern Ireland presence is complemented by a Great Britain based business development team focused on growing the business across the UK & Ireland, building on AES’ global and local track record in energy storage, renewables, and thermal generation.

We continue to invest to enhance security of supply, support decarbonisation targets, and create value for customers across these islands. Recent investments at the two Northern Ireland plants have focused on environmental upgrades, energy efficiency, and the introduction of energy storage to the market. We are committed to building our UK and Ireland business from Northern Ireland delivering on essential security of supply requirements while helping derive maximum benefit from renewables.

ORGANISATIONAL PROFILE – AES UK & IRELAND

Figure 4: Scale of AES UK & Ireland

1,766 MW capacity

282 Employees

Net Revenue: £68,221,000Total Assets: £354,586,000

Figure 5: Northern Ireland generation capacity 2014



be fully compliant with the new Industrial Emissions Directive limits for both Nitrogen Oxide (NOx) and Sulphur Dioxide (SOx), achieving a threefold reduction in emissions.

The extension of the B Station ensures vital security of electricity supply to consumers and businesses in Northern Ireland over a three year period for less than 1% of the average electricity bill. The upgrade has retained upwards of 140 local jobs, both at AES and long-term contractors.

KILROOT POWER STATION

AES Kilroot Power Station is situated on the north shore of Belfast Lough near Carrickfergus in County Antrim, Northern Ireland. Kilroot has an installed generating capacity of 520 MW from dual coal and oil fuelled generators, plus 140 MW from additional gas turbines.

The acquisition of Kilroot in 1992 was The AES Corporation’s first investment outside of the United States.

The plant was commissioned in 1981 solely as an oil burning station. In 1989 the plant converted to dual fuel firing with coal.

AES installed Flue Gas Desulphurisation equipment in 2007 to meet the requirements of the EU Large Combustion Plant Directive. AES continues to invest in environmental improvements, including heat rate improvement programmes.

BALLYLUMFORD POWER STATION

AES Ballylumford Power Station is situated on the north western tip of Islandmagee in County Antrim, Northern Ireland, opposite the sea port of Larne. With an installed generating capacity of 1246 MW it is the largest power station on the island of Ireland.

The B Station consists of 3 x 180 MW (540 MW) generating sets commissioned in 1974 and converted to natural gas primary fuel firing in 1997.The C Station is a 600 MW Combined Cycle Gas Turbine (CCGT) plant which was commissioned in 2002.

Two distillate fired aero-derivative gas turbine generators (OCGT) were commissioned in 1976 to provide additional capacity of 106 MW.

With the introduction of the Large Combustion Plant Directive in 2004, Ballylumford was expected to close at the end of 2015. In March 2014 AES responded to a tender in the EU Journal from the System Operator for Northern Ireland (SONI) for additional capacity to support security of supply from 2016. In November 2014 it was announced that AES had won a contract for a three year period, with the option (at SONI’s discretion) to extend for a further two years.

One B Station unit will be retired at the end of 2015 with the remaining two units operating at a nominal output of at least 250 MW. These units will

ORG

AN

IZATION

AL PRO

FILE



Kilroot Power Limited has opted into the Transitional National Plan of the Industrial Emissions Directive from 1st January 2016 to 30th June 2020.

Environmental upgrades to the plant will ensure full compliance with emissions standards, enabling Kilroot to continue to play an important role in providing security of supply for Northern Ireland.

GB ONSHORE WIND

In August 2014, AES sold 86.5 MW of onshore wind in Great Britain to Greencoat Wind UK and Swiss Life Fund. AES Wind Generation had developed, constructed and operated four onshore wind farms:

• Drone Hill Wind Farm (22 MW, Scottish Borders),

• North Rhins Wind Farm (28.6 MW, Dumfries & Galloway),

• Sixpenny Wood Wind Farm (20.5 MW, East Riding of Yorkshire), and

• Yelvertoft Wind Farm (16.4 MW, Northamptonshire).

ORG

AN

IZATION

AL PRO

FILE


AES UK & Ireland 2014 Sustainability ReportFIN

AN

CIA

L EXCELLEN

CE

• adapting, extending and replicating our generation platform,

• increasing and supporting the incorporation of renewable energy in the energy matrix,

• developing customer-centric energy solutions, and

• strategically engaging stakeholders on a stepped up basis.

Our growth plans are focused on expanding from existing platforms where we have a sustainable competitive advantage.

ECONOMIC PERFORMANCE

Our financial results are made possible by our operational excellence, safety, risk management approach, and ethical and effective conduct by AES people.

In September 2014, AES UK & Ireland released annual accounts for our generating businesses, AES Ballylumford Limited and Kilroot Power Limited for the year ended 31 December 2013. Our accounts combined to demonstrate:Net Revenue: £68,221,000

Total Assets: £354,586,000

We were honored to be placed in the Top 3 of the Belfast Telegraph Top 100 Businesses in Northern Ireland, based on these results. AES’ position in the Top 100 increased from previous years due to a new focus on pre-tax profits, which foregrounds Northern Ireland’s recovering corporate profitability, and the associated benefits for employment figures. As a capital intensive business, AES was pleased by the increased emphasis on the importance of profitability as the main driver of continued investment in staff, local business rates and new developments.

Executing our strategy requires that we manage sustainability issues with discipline. Financial success enables us to continue to attract capital and talented people as well as invest in innovative energy solutions for the UK and Ireland markets.

Our financial performance is managed in keeping with our corporate strategy to ensure the company’s economic sustainability. Anticipating, identifying and managing risk is an essential element of our governance and financial management functions. We manage risk at the Europe Strategic Business Unit (SBU) and UK & Ireland market level, by aggregating all existing risk under the Risk Management Team, which reviews, balances and manages risks across our portfolio.

Disciplined allocation of our capital is an essential element of our strategy. To achieve our objectives we operate our portfolio to: i) create value for our shareholders; ii) drive our operating businesses to generate capital for deployment into operational improvements, growth investments, debt repayment, and shareholder dividends; iii) drive stability of cash flow and earnings in our business through contractual, regulatory and hedging activities; and iv) focus our growth investments on expanding from our platforms in our markets where we have a competitive advantage, including the UK and Ireland.

In April 2015, AES UK & Ireland agreed a new strategy based on the evolving external environment, stakeholder needs, our competitive advantage, and alignment with AES Global strategy. As a business we will seek to deploy innovative energy solutions to address the ‘trilemma’ of security of supply, decarbonisation, and cost across the UK & Ireland market by:

FINANCIAL EXCELLENCE


AES UK & Ireland 2014 Sustainability ReportFIN

AN

CIA

L EXCELLEN

CE

• Winning a competitive tender from System Operator Northern Ireland (SONI) in October 2014 to provide 250 MW of generation capacity to support security of supply for three years from 2016 (with an option at SONI’s discretion to extend for a further two years).

• Allocated investment for the environmental upgrade of Kilroot Power Station to meet the requirements of the UK Transitional National Plan for the Industrial Emissions Directive.

• The planned 10MW Kilroot Advancion Energy Storage Array was selected as one of the 40 UK wide projects to win support from the Department of Business, Innovation and Skills in February 2015. AES secured Innovate UK Energy Catalyst funding in partnership with Queen’s University Belfast.

Our ranking reflects the strength of our people in operating our assets as well as engaging commercially in the Single Electricity Market. Our performance was driven by two key drivers:

We are a Top 3 business in Northern Ireland.

excellent operational performance and favourable commodity prices for Kilroot Power Station, which helped to keep the cost to consumers down in the face of a rising gas cost.

Our 2014 strategic achievements include: • The sale of 86.5 MW of onshore wind in

Great Britain to Greencoat Wind UK and Swiss Life Fund in August 2014.

KILROOT BATTERY ENERGY STORAGE RECEIVES INNOVATE UK SUPPORT

In February 2015 Innovate UK announced funding for 40 successful projects which will help supply affordable, secure and sustainable energy. The Kilroot Advancion Energy Storage Array was hailed as “game-changing green technology” with the ability to innovate the All Island Electricity Market to accelerate the adoption of technically proven battery energy storage technology.

Energy Catalyst funding of £736,000 will be shared by AES and Queen’s University Belfast for the 30 month project. AES will use the funding to demonstrate additional abilities of the energy storage array to support security of supply and cost savings. Queen’s University Belfast will monitor, evaluate and substantiate the value of storage in providing flexible services, leading to a publically available report.The Kilroot Advancion Energy Storage Array is a fully commercial project, providing primary, secondary and tertiary operating reserves for the System Operator. The array’s provision of ancillary services will be paid for from the existing Harmonised Ancillary Services Fund, with no additional cost to customers. The Kilroot Array will start delivering benefits to customers in Northern Ireland at the end of 2015.



PERATION

AL EXC

ELLENC

E

Power Station in Carrickfergus, Northern Ireland. Our global experience and local knowledge provides us the strength and flexibility to adapt to changing local and regional energy needs, maximise plant efficiency, and deliver the electricity needed now and in the future, which is essential to economic growth, public health and security.

Our 2014 operating performance for the year was driven by the strategic management of our assets, favourable commodity prices and very strong operational performance. We continue to invest to enhance security of supply, support decarbonisation targets, and create value for customers across these islands. Investments at the two Northern Ireland plants in 2014 focused on environmental upgrades and energy efficiency.

70% of Norther Ireland generation capacity in 2014

Our planned future capacity will come from a combination of projects currently under construction or development, including the Kilroot Advancion Energy Storage Array and a series of augmentation and repowering projects at our existing sites, as well as platform expansion into Great Britain and the Republic of Ireland.

AES UK & Ireland improves lives by providing safe, reliable and sustainable energy. We continually improve the way we work and strive to deliver energy in the most efficient, safe and dependable manner we can.

In 2014 AES provided 70% of Northern Ireland’s generating capacity, equivalent to 11% of the All Island Electricity System’s generating capacity. Guaranteeing a regular supply of electricity for consumers requires the use of modern technologies for power delivery, as well as system reliability monitoring. Thus, it is essential that we strive for excellence as we operate our businesses each day.

We consider operational excellence to include not only supplying reliable, affordable power and ensuring our plants are available to run as much of the time as possible, but also managing physical and cybersecurity, disasters and emergencies, public safety, and environmental performance.For each of these dimensions of our operations, we have management systems in place that provide training to support better performance as well as a uniform system of Key Performance Indicators (KPIs).

AES works with government, system operators and regulators to address projected long-term electricity demand. AES will act as a market player and make investments that are aligned with government policy and our corporate strategy and criteria.

AVAILABILITY, RELIABILITY AND ACCESS TO ELECTRICITY

The AES Corporation has generated electricity in the UK since 1992, with the acquisition of Kilroot

OPERATIONALEXCELLENCE



PERATION

AL EXC

ELLENC

E

AVERAGE PLANT AVAILABILITY FACTOR

In 2014, AES UK & Ireland maintained a high availability factor of 85.04%.

Ballylumford 1,704.00 4.000.00 0.00 1708.00

GB Wind Portfolio 0.00 0.000.00 203.60 203.60

Kilroot 0.00 13.002,303.00 0.00 2316.00

AES Global Total

Plant

25,528 .47

Natural Gas

5,456 .24

Oil, Diesel & PETCOKE

69,669 .48

Coal

29,189 .11

Renewables (Hydro, Wind, Biomass, Landfill Gas)

129,843 .29

Total

Table 1: Net energy generated (GWh) by plant and fuel type.

Ballylumford 90.61% 90.79%90.03%

GB Wind Portfolio 96.25% 95.26%97.54%

Kilroot 93.68% 93.17%78.70%

AES total

Commercial Availability (CA)1

89 .1%

2013

90 .5%

2014 Target2012

93 .5%

2014

Table 2: Commercial availability by energy source 2011 – 2014.

Lower availability of Kilroot Power Station in 2014 was due to maintenance requirements.

93 .86%

86.45%

97.74%

93.05%

AES performs maintenance dredging at Kilroot Power Station every five years, to remove thousands of tonnes of accumulated sediment from cooling water intakes. Over time the level of sediment in the Kilroot Cooling Water Intake Lagoon could reduce the water available to the plant. We dredge before we reach this level, but the process uses significant resources.

A team of AES Kilroot people identified a novel and low cost dredging process called Water Injection Dredging. In 2007 the technique was successfully piloted during a planned shutdown

IMPROVING OPERATIONAL MAINTENANCE AT KILROOT POWER STATION

of the plant, achieving the best quality dredge in the plant’s 30 year history and yielding a cost saving of $1 million against conventional dredging.

Using the methodologies of AES Performance Excellence (APEX), in late 2013 the team explored the possibility of using Water Injection Dredging while the plant was in service, to achieve our maintenance requirements and ensure maximum availability of the power station to support security of supply. The in service dredge successfully took place over 12 days with no impact on plant availability. This innovative approach was an AES global first which drove down operating and maintenance costs, improved process performance, and engaged AES employees. The technique is fully replicable and will be applied to future dredges at Kilroot and selected other AES plants.

1 Commercial Availability: Actual variable margin, as a percentage of potential variable margin if the unit had been available at full capacity during outages.



CYBERSECURITY

At AES, we consider cybersecurity a safety issue that starts with our people — we must put safety first when leveraging the power of the Internet both at work and at home. The energy sector continues to be the top targeted industry in regard to industrial control system attacks. The majority of these attacks are reconnaissance to capture infrastructure/ architecture designs or determine system capabilities.

Although AES has not experienced any significant intrusion to our systems or customer data, the converging trends drove the recent evolution of our cybersecurity plan from broad strategic goals to a highly organised programme supported by five well-defined elements (see Figure 6).

In 2014 we expanded the AES Cybersecurity Guidelines to better address critical operational systems risks, including the Industrial Control Systems (ICS) that AES UK & Ireland uses at Ballylumford and Kilroot Power Stations, such as SCADA (Supervisory Control and Data Acquisition) and DCS (Distributed Control Systems). The Cybersecurity Team continuously refines the

OPERATIO

NA

L EXCELLEN

CE

programme’s risk-based approaches to address the constantly changing threat environment that the energy sector and, more specifically, AES must counter on a real-time basis. The Europe SBU Cybersecurity Champion is currently based in Northern Ireland.

Our Cybersecurity Guidelines cover over 10 foundational areas of cybersecurity and are based on industry standards and best practices.

In 2014 AES developed our Cyber Ninja Guide, which provides a comprehensive set of guidelines designed to educate, enable and empower AES people and contractors to play an active role in protecting themselves and their families from the growing risks of connectivity. The guide was prepared through a collaborative effort among all six SBUs and the AES Cybersecurity Team and covers topics related to:

• Cybersecurity when working in the field or in AES facilities;

• Cybersecurity when working outside the office;

• Suggestions on what to do in specific threatening situations; and

• Cyber safety tips when traveling.

Figure 6: Cybersecurity programme elements

Programme Elements

Risk Management

Cyber Communication

AES Cyber Academy

Cybersecurity Operations

Governance and Policy

– Cyber Ninja Guide –

AES Cyber Ninja Guide provide guidelines to educate, enable and empower AES people and contractors.



PERATION

AL EXC

ELLENC

E

exercises with outside agencies and the emergency services. In September 2014 AES undertook a simulated oil spill from our ship unloading jetty at Kilroot Power Station. The jetty is used to unload coal for the plant on a frequent basis and less regularly to unload heavy fuel oil (HFO), a potential marine pollutant. The exercise involved personnel from the Northern Ireland Environment Agency, Belfast Harbour Commissioners, Agri-Food and Biosciences Institute, and assorted personnel from the Belfast Integrated Oil Spill Group (of which AES is a member organisation).

We have programmes in place to ensure our operations are prepared to deal with unusual disruptions.

For example, as part of a proactive risk prevention plan AES regularly conducts emergency planning exercises with outside agencies and the emergency services. In September 2014 AES undertook a simulated oil spill from our ship unloading jetty at Kilroot Power Station. The jetty is used to unload coal for the plant on a frequent basis and less regularly to unload heavy fuel oil (HFO), a potential marine pollutant. The exercise involved personnel from the Northern Ireland Environment Agency, Belfast Harbour Commissioners, Agri-Food and Biosciences Institute, and assorted personnel from the Belfast Integrated Oil Spill Group (of which AES is a member organisation).

The group tested their joint ability to contain and clean up a simulated spill of around 10 tonnes of HFO e.g. from a ruptured discharge hose. This involved deploying a floating boom using boats. This simulation exercise allowed the local team to test the effectiveness of our procedures and strengthen working practices with key outside agencies.

DISASTER/EMERGENCY PLANNING AND RESPONSE

As a provider of essential services, we have established business resilience programmes to ensure our operations are prepared to cope with unusual disruptions.

The goal of this proactive approach is to keep our business and operations running effectively, safely and securely. We continually seek to improve the agility and competitiveness of our businesses, improving the lives of people who rely on AES for electricity. AES UK & Ireland has developed a comprehensive playbook with the following plans: Business Continuity, Cybersecurity, Physical Asset and Personnel Security, Crisis Communication, Stakeholder Engagement and Succession.

These plans consider AES UK & Ireland’s assets as well as all local regulations, and include preparedness for:

• Operational emergencies;

• Emergencies involving nature, e.g. severe weather, floods;

• Off-site emergencies that will have a significant impact on operations or staff; and

• Physical security measures, including evacuation of our people.

Our approach includes continual monitoring of weather systems; staging of resources prior to anticipated emergencies; mobilisation to restore outages; clear and frequent communications with customers, the media and government officials; continuous improvement of our emergency response capabilities; and collaboration with neighbouring businesses, contractors, communities and government officials.

For example, as part of a proactive risk prevention plan AES regularly conducts emergency planning


AES UK & Ireland 2014 Sustainability ReportEN

VIRO

NM

ENTA

L PERFORM

AN

CE

OUR APPROACH

At AES, we are committed to our company vision to be the world’s leading sustainable power company that safely provides reliable, affordable energy. We seek to select environmentally compliant as well as an environmentally sound energy solutions for each market we serve through impact evaluations, technological innovation and implementation of appropriate environmental controls.

AES has an Environmental Policy which comprises four principles applicable to all of our operating businesses and construction projects. The policy sets the expectations for our AES people and contractors at all covered locations, and is the foundation of our environmental management approach.

Environmental performance is managed in accordance with an Environmental Management

System (EMS) Framework that is consistent with the principles of the ISO 14001 Environmental Management System standard. Under the framework, each business develops an environmental programme that includes environmental procedures, performance monitoring, audits and risk assessment, objectives, targets and action plans. A graphical representation of our EMS approach is shown in Figure 7.

In order to verify the adherence and compliance of our businesses to the AES EMS Framework and standards, we have developed an environmental audit programme that includes both formal external (conducted by Environmental Health and Safety [EHS] specialists from outside the audited site) and internal (conducted by operating site personnel) audits. Findings are accompanied by a corrective action plan and an agreed upon completion date.

AES UK & Ireland businesses formally certify their EMS performance with the ISO 14001 and ISO 18001 international standards. The ISO/OHSAS accreditations are externally verified and monitored.

ENVIRONMENTALPERFORMANCE

1. Meet or exceed the requirements of environmental rules and regulations imposed by local, regional, and national governments and by participating financial institutions.

2. Meet or exceed our Environmental Standards.3. Make decisions on additional expenditures based on a number of factors, including an

evaluation of the local, regional and global environment where the term “environment” is broadly defined as the external surroundings or conditions within which people live — including ecological, economic, social and all other factors that determine quality of life and standard of living.

4. Seek continual improvement of the environmental performance at every AES business.

AES ENVIRONMENTAL POLICY



VIRO

NM

ENTA

L PERFORM

AN

CE

The AES EMS provides the foundation for tracking environmental issues and metrics, taking action on them, and reporting sustainability results to the following external stakeholders:

Figure 7: Elements of AES Environmental Management System.



VIRO

NM

ENTA

L PERFORM

AN

CE

AIR EMISSIONS

Combustion of fuels to generate electric power results in the release of both conventional and greenhouse gas (GHG) emissions. Depending on the fuels used to generate power, these conventional air emissions may consist of Sulphur dioxide (SO2), nitrogen oxides (NOx), particulate matter (PM) and mercury (Hg). Also, the combustion of fuels results in the direct emission of Scope 1 GHGs, primarily carbon dioxide (CO2)Air emission levels and intensities depend on many factors, including generation diversity and efficiency, demand for electricity, weather, fuel availability and prices, and emission controls deployed. We account for all emissions at all thermal power plants, and declare these in line with UK regulations.

In Northern Ireland, we track air emissions using continuous emission monitoring systems (CEMS). We manage air emissions using a combination of generation plant combustion unit design, air pollution control equipment and variable operational parameters (e.g. fuel use and emission factors are selected to meet UK air emissions requirements).

AES used the services of Lloyd’s Register Quality Assurance Inc. (LRQA) to conduct a limited assurance of all of AES’ 2013-2014 air emissions data with a main objective of increasing credibility and transparency of AES’ air emissions reporting. In addition to third party verification, an internal AES quality assurance/quality control (QA/QC) process was used to validate reporting in prior years (2010, 2011 and 2012).

Direct Greenhouse Gas (GHG) Emissions, Scope 1 and Scope 2

In 2014, AES expanded its direct greenhouse gas emissions scope to include direct Scope 1 GHG

emissions from non-power generation sources (such as those from motor vehicle uses).

Our 2014 Scope 1 data represents our ownership-adjusted CO2 equivalent (CO2e) emissions from the following sources:

• Major fuel-fired power generation stationary sources (e.g., boilers, gas turbines, reciprocating engines);

• Smaller fuel-fired sources (e.g., emergency generators, space heating, portable equipment);

• Vehicle emissions (passenger cars, light trucks, heavy duty vehicles); and

• Direct releases of CH4, SF6 and HFC-based air conditioning refrigerant gases.

Our enhanced GHG Inventory accounts for all GHGs required by the UNFCCC/Kyoto Protocol (with the exception of PFCs and NF3, which are not used in our operations) and is calculated using methodologies and emission factors from “The Greenhouse Gas Protocol” (WRI/WBCSD).

AES made significant steps in 2014 to enhance the quantification of indirect greenhouse gas (GHG) emissions from all of its businesses activities, including mobile and portable plant emissions, and non-power generation stationary sources.

Ballylumford

Kilroot

858,453

2,148,917

CO2 emissions (tonnes)

Table 3: Scope 1 Greenhouse Gas Emissions 2014

Generating Plant

Ballylumford

Kilroot

21

393

CO2 emissions (tonnes)

Table 4: Scope 2 Greenhouse Gas Emissions 2014

Generating Plant



VIRO

NM

ENTA

L PERFORM

AN

CE

through process improvements and equipment replacements.

Heat Rate is an industry standard performance measure defined by the amount of fuel consumed to provide 1 kWh of electricity (or 1 unit on a domestic/commercial electricity meter). Our UK & Ireland businesses carry out ongoing performance monitoring to identify any improvements that can be made to ensure we generate electricity as efficiently and cost effectively as possible. Our plants are audited as part of the AES Heat Rate Assessment Programme which recommends actions to drive improvements. The assessment teams consist of members from a wide range of generating technologies which helps spread innovative solutions within the company.

AES UK & Ireland was one of 10 AES businesses to complete heat rate improvements, resulting in estimated annual CO2e savings of 17,819 metric tonnes globally. Examples of projects that were implemented during the year include replacement of older plant lighting systems with more energy efficient LED systems, transformer and pump optimisation, and boiler heat rate improvement initiatives.

WATER

For our generation businesses, water availability is important not only to operate, but also to operate efficiently. At Ballylumford and Kilroot Power Stations, water is predominantly used for the steam cooling process where only a small portion of the water evaporates and the majority is returned to the water source body.

In order to minimise our environmental impact, our plants are designed to reuse as much of the water and steam in the generation process as possible. Water that has been heated and converted to steam is cooled back to liquid so that it can be used

Scope 3 Emissions

Scope 3 emissions include indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities, outsourced activities, waste disposal” and are traditionally considered to be de minimis for the electric utility industry. In 2014 AES began tracking indirect emissions from electricity sales to customers by our distribution businesses. As AES UK & Ireland does not own any distribution businesses, this was not applied in our market.

NOx, SO2 and other Air Emissions

The data in Table 5 refers to SO2, NOx and particulate matter (PM) emissions resulting from our UK & Ireland businesses’ major fuel combustion units in 2014. The annual quantities of Nox emissions depend on the dispatch by fuel type and Nox emission controls available.

Reduction of GHG and Other Air Emissions – Energy Efficiency for Our Customers

Our businesses are continuously looking for ways to improve power generation efficiency and reduce emissions. During 2014 AES operating businesses implemented diverse emission reduction projects

Ballylumford Kilroot

147

1224Nitrogen Oxides (Nox)

Table 5: SO2, NOx and PM Emissions 2014

Sulfur Dioxide (SO2)

Particulate

2236

2683

2 29



VIRO

NM

ENTA

L PERFORM

AN

CE

The AES Corporation assesses Projected Annual Renewable Water Supply Per Person by Watershed to identify water stressed areas. AES UK & Ireland’s generating plants do not fall into areas classed as water stressed.

Water Withdrawal and Discharge

The AES water withdrawal inventory includes cooling water, process water and potable/drinking water (with the exception of bottled water). The

over and over again. We have systems in place to ensure we meet the highest quality standards in terms of water management and control of waste water on our sites.

Our Health, Safety and Environment teams manage and monitor water quality and environmental related issues. We monitor the management of water resources and compliance with regulatory requirements through periodic external and internal audits. Findings are properly addressed and closure actions are established.

Table 6: Water withdrawal and Discharge 2014

Total Water Withdrawal

Ballylumford

Kilroot

1,666,913 m3

886.47 m3

Water Consumption(million cubic metres)

1,054,205 m3

886.47 m3

Water returned to the source of extraction at similar or higher quality as raw water extracted

All the water withdrawal and discharge data for 2014 was verified by Lloyd’s Register Quality Assurance Inc. (LRQA).

The water treatment plant (Reverse Osmosis, Electro-deionisation plant) at AES Ballylumford produces a variety of process waters (including demineralised water) through the desalination of seawater. A team of engineers sought to improve the production of process water required for electricity generation at the plant.

Their innovative solution led to a controlled reduction in water capacity and an increased efficiency for the first stage Reverse Osmosis step of the production process. The installed solution saves cost and carbon emissions by increasing the plant efficiency and reducing the electrical consumption associated with the production of process water; all without impacting on the generating capacity of the site.

This innovation was shortlisted for the British Quality Foundation Awards and is being replicated at other AES plants around the world.

BALLYLUMFORD WATER EFFICIENCY INNOVATION



AES businesses, whenever possible, make efforts to recycle and allow others parties to reuse CCPs in engineered products including cement, concrete, road bases, cover at solid waste landfills and liquid waste solidification/stabilisation, wallboard and even bowling balls. This benefits the environment, the energy industry and the products themselves. As a result of these efforts, AES’ global businesses have increased CCP recycling and reuse by 8.1 percent since 2011.

In the UK & Ireland, AES produced 49,460 tonnes of bottom ash from Kilroot Power Station, which was sold for reuse by the cement and excavation industries, reducing overall emissions, waste and landfill disposal costs.

AES used the services of Lloyd’s Register Quality Assurance Inc. (LRQA) to conduct limited assurance of AES’ 2014 CCP generation and recycle/reuse data.

Spills

According to the EMS and Environmental standards, AES define reportable spills as any liquid spills reported to local environmental regulators and/or lost off AES property into the environment at a quantity equaling or exceeding 55 gallons (210 litres). Non-reportable spills usually represent small spills that are quickly contained or spills that are released into secondary containment.

In 2014, AES UK & Ireland had zero reportable oil and chemical spills.

BIODIVERSITY

AES’ operating businesses, development and construction sites address biodiversity issues under the AES EMS framework. We monitor and declare relevant biodiversity Key Performance Indicators

ENV

IRON

MEN

TAL PERFO

RMA

NC

E

water discharge inventory includes cooling water and process water discharges from open cycle cooling systems. Domestic sewage, rainwater and storm water effluents are not considered to be discharges and are not included in our inventory.

EFFLUENTS AND BYPRODUCTS

The AES EMS and global environmental standards establish minimum requirements for the management of hazardous and special wastes, chemical and raw material management, and spill prevention and control through assessment of hazards, management actions, and establishing preventive and control measures. AES UK & Ireland has its own emergency response plans, including spill prevention and containment plans for Ballylumford and Kilroot Power Stations, as well as Cloghan Point Oil Terminal.

Our water discharges include cooling water and process water discharges, which can impact the quality of receiving streams (e.g. temperature and pH levels). These impacts are managed through diligent control and monitoring of all water discharges for temperature, pH and chemical composition. We also monitor upstream and downstream areas from our water discharge sources as well as groundwater around our ash ponds. The results of these measurements are reported to Northern Ireland Environment Agency (NIEA).

Coal Combustion Products (CCPs) Generation, Reuse and Recycle

Coal combustion products (CCPs) include bottom ash, fly ash, synthetic gypsum (also referred to as flue gas desulfurization (FGD) gypsum), FGD solids and cenospheres. CCPs are generated when power plants burn coal to generate electricity or through the use of emission control technologies.



VIRO

NM

ENTA

L PERFORM

AN

CE

(KPIs) under the following two processes: • Completion of a mandatory annual

environmental aspects and impacts assessment (AIA) process that assesses the potential impacts of recent or near future changes in environmental aspects, including biodiversity;

• Completion of a mandatory annual sustainability survey that also collects biodiversity information, including the extent of land disturbances during the past year, nearby sensitive/protected areas, identification of protected species and habitats, and ongoing biodiversity protection initiative metrics.

In the UK & Ireland, we have made a significant commitment and contribution to protecting and enhancing biodiversity on our sites, and have been externally recognised as a company that sets an ambitious agenda for corporate biodiversity behaviours. Taking positive action in this area has sent a clear message to staff, customers and neighbours that AES takes responsibility for its impact locally.

Our generating sites in Northern Ireland include biodiversity rich land holdings which we manage in an environmentally conscious manner, with the guidance of our charity partner Ulster Wildlife.Following the discovery of endangered bee orchids at our Ballylumford Power Station, AES stepped up our actions to protect and enhance local wildlife within our grounds. We commissioned biodiversity

audits of our sites and reports to outline the findings and recommendations for conserving and encouraging biodiversity, without compromising the safe and efficient management of the generating assets. We have taken steps to encourage Northern Ireland priority species including Irish hare, barn owl, sand martin, small heath and Real’s wood white butterflies, cowslip and of course, the bee orchid.

These recommendations are implemented by the Ballylumford and Kilroot Power Stations’ Green Teams – groups of AES people who coordinate activities including wildflower planting, wildlife garden building, tree and hedgerow planting, building bat and bird boxes, and creating nature walks within the grounds.

Our schools programme The Power of Energy in Nature, delivered with Ulster Wildlife, spreads this message to local school children and community groups.



We aim to strengthen relationships through meaningful engagement with our stakeholders. We work to structure stakeholder engagement activities to be interactive so we can receive effective feedback.

Partnering with environmental NGO Ulster Wildlife since 2005.

In line with Global Reporting Index (GRI) guidelines, the following table summarises our current stakeholders and provides examples of methods of engagement, issues of interest, and how the issues are addressed. Investors and shareholders are engaged through The AES Corporation at a global level.

At AES, stakeholder engagement refers to the process of developing strong, proactive and consistent relationships with key stakeholders of the company. Stakeholder engagement is integrated into the company’s global strategy as AES recognises that it is critical for sustainability and our social license to operate.

Non-government organisations (NGOs), governments, communities, other market players, customers, lenders, investors and employees are stakeholder groups with whom we strive to maintain solid relationships.

STAKEHOLDER ENGAGEMENT

Table 7: Main Stakeholders.

AES People

AES Stakeholders

• Workplace safety

• Career opportunities

• Job stability

• Diversity and inclusion

• Salary and benefits

• Company strategy and leadership

• Having a positive corporate image

• Employee Engagement Champions

• Promote two-way communications

• Increase feedback mechanisms

• Increase involvement in company related activities

Key IssuesHow Issues are Addressed

Engaging our people is critical to our business success and our employees expect open discussions about workplace safety, career opportunities, job satisfaction, diversity and inclusion, and benefits and salary via:

• AES People surveys

• Company intranet — OurAES.com

• Scheduled update communications from company executives at global, SBU and business level

• Our monthly electronic newsletter, Watt’s Up

• Employee Helpline

• Yearly performance reviews

• Online courses and classroom training

• Leadership and employee development opportunities

Engagement

STAKEH

OLD

ER ENG

AGEM

ENT



Governments

Industry Observers

AES Stakeholders

• Reliability

• Security, affordability and sustainability of electricity supply

• Energy market structure and regulation

• Job creation

• Environmental compliance

• Business development and costs

• Safety

• Fuel diversity and balanced energy matrix

• Investment in new technologies to keep long-term electricity supply reliable, affordable and cleaner

• Engage in discussions with governments about environmental performance and policy

• Strive for Great Place to Work status for the 260 AES people and 140 contractors regularly employed by AES.

• Offer significant youth employment programmes to support local young people into employment.


It is our duty to communicate with local, devolved and national government officials across the UK and Ireland to ensure that we develop sound energy policies that balance reliability, affordability and environmentally sound practices via:

• Meetings with elected officials in communities surrounding our power plants

• Power plant tours

• Emergency planning exercises conducted with local emergency agencies

• Consultation responses

• Regulatory proceedings and rate cases

• Reporting in compliance with national and local regulations.

Engagement

Communities

We invest in, support and ensure dialogue with the communities where we conduct business via:

• Periodic community meetings in communities surrounding our facilities

• Career fairs

• Volunteer projects and financial contributions

• Participation in community events

• Website

• Traditional and Social Media

• Employment of local talent

• Business development in local communities

• Environmental performance and policies

• Job creation

• Safety

• Skilled work force development

• Updates on key issues and projects and feedback mechanisms on website

• Skilled work-force development programmes with local programmes for entry level roles

• CSR programmes

• Education on safe, adequate and efficient use of energy in local schools

• Employment

• Business development and costs

• Infrastructure

• Environmental performance and policies

• Job creation

• Safety

• Skilled work force development

Engage in many NGO and trade association dialogues on energy and environmental pol-icy topics, including en-ergy storage, renewable policy, and investment in Northern Ireland.

We engage in dialogue with trade associations, NGOs and other industry observers through: • Industry organisations,

conferences and direct dialogue

• Participation in advisory councils, business alliances of NGOs

• Collaboration with NGOs in facilitating policy making dialogues

• Website

• Traditional and social media

Table 7: Main Stakeholders (continued).

STAKEH

OLD

ER ENG

AGEM

ENT



In January we also won Business of the Year in the 2015 Arts & Business Awards in recognition of our CSR programme.

Charitable Donations

Through charitable donations, AES enhances the quality of life for the communities which host our businesses. Our people also contribute their time to the community through volunteer efforts. The combination of financial support and human resources affirms AES’ commitment to being a good neighbour.

The UK & Ireland Charities Committee provide small charitable donations for local initiatives, all

IMPACT ON EDUCATION AND LIVING STANDARDS IN OUR COMMUNITIES

Improving lives and making a lasting difference in the communities in which our businesses operate is at the core of AES’ mission.

AES permanently engages in dialogue with community stakeholders to continue building relationships based on respect, trust and collaboration. In Northern Ireland, our Corporate Social Responsibility (CSR) activities go back to the acquisition of Kilroot Power Station in 1992.

We are proud of our leading CSR programme and the AES people who make it happen. With our 2014 performance, AES is the first ever organisation to be awarded the Silver Certification by Business in the Community Northern Ireland’s CORE corporate responsibility standard. CORE is a framework for identifying and measuring corporate responsibility activity and performance across organisations. CORE enables companies to map their entire corporate responsibility activity and benchmark it against other organisations, all verified by an external assessor.

Suppliers

AES Stakeholders

• Direct contact between vendors and AES’ supply chain buyers and sourcing specialists

• Supplier performance score cards

• Published policies and guidelines such as safety requirements, environmental guiding principles and supplier diversity objectives

• Centralised management of key supply chain categories such as fuel sourcing

• Developed and communicated safety, environmental, and diversity guidelines to existing and prospective suppliers


As a supplier of products and services ourselves, we understand the importance of open communication. We promote suppliers’ success through clear policies, procedures, terms and conditions

Engagement

Table 7: Main Stakeholders (continued).

STAKEH

OLD

ER ENG

AGEM

ENT



additional £2 is added to the pot to be donated. In 2014 AES people chose Northern Ireland Children’s Hospice as our Charity of the Year. In total £20,892 was donated to the Hospice, including £892 collected from employees over Christmas and £13,000 from BBS submissions. For 2015, AES people chose Royal Victoria Hospital Cardiac Intensive Care Unit in Belfast as the Charity of the Year.

Charitable Partners

At AES, we prioritise sustainable partnerships, community engagement and longer-term initiatives. Some of our partnerships go back many years and some are just now being developed to meet a specific need or opportunity in our local areas.

By developing and effectively implementing sustainable programmes and initiatives, AES develops longer-term relationships with local communities, which in turn ensures a stable operating environment for our businesses and a genuine two way relationship between the company and the people who host our generation businesses.

In 2014, we funded ongoing projects with our partners including:

• Age NI, the leading charity for older people in Northern Ireland. We funded a new Advice Team to identify unclaimed benefits

administered by local employees. Donations of up to £500 are targeted to local non profit organisations, with preference for charities nominated by an AES employee or contractor.

In 2014, we made donations to local causes including:

• Kilcreggan Urban Farm • County Antrim Milk Cup youth football team • Women’s Aid (Ballymena, Antrim,

Carrickfergus, Larne and Newtownabbey)

In August 2014, AES sold a fleet of four onshore wind farms in the UK. As AES sites, each of the wind farms provided Community Benefit Funds. In 2013-14, AES donated just over £200,000 in community benefit payments, including £40,000 to the Heywood Initiative for tree planting in East Yorkshire, £7,000 for the installation of solar panels on Yelvertoft Village Hall in Northamptonshire, and £2,500 for the Berwickshire Community Safety Panel in the Scottish Borders.

In 2012 AES donated £235,280 to enable the community purchase of Portpatrick Harbour in Dumfries & Galloway. This donation was in response to a specific local need and opportunity, and has created a long-term, positive impact for the community.

Charity of the Year

Each December, AES people nominate and vote for the AES UK & Ireland Charity of the Year. The Charity of the Year programme doesn’t simply provide funding – it also creates a reward scheme to encourage everyone in our company to ‘Put Safety First’.

The final amount donated to the Charity of the Year depends on the safety participation and performance of AES people. Every time an AES employee or long term contractor submits a Behavioural Based Safety (BBS) Submission, an

STAKEH

OLD

ER ENG

AGEM

ENT



Schools Partnerships

AES is committed to building long-term partnerships with local schools, strategically supporting young people as they transition into further education and work.

Practical experience of the day to day work of a power plant can be the opportunity young people need to inspire a successful Science, Technology, Engineering and Maths (STEM) career. We provide a programme of outreach in local schools, to encourage the study of STEM subjects and raise awareness of potential careers in our industry.

Our programme is delivered by AES people across all departments, and includes:

• Tours of the plant for local schools, colleges, universities and youth groups.

• Work experience schemes for secondary school students to gain an insight into working life and what tasks are involved in departments such as chemical, mechanical and electrical engineering, HR and IT. In 2014 we welcomed 35 students for formal work experience placements;

• Interview skills days to enable students to prepare for interviews through constructive feedback to improve interview technique and job prospects;

• STEM Teacher Placement Programme which gives an insight into how teachers can make topics on their exam syllabus more relevant to students to improve grades;

• School Mentorship programme to give students in local schools someone to aspire to, who can emphasise the importance of working hard at school and to make school work more relevant to increase pass rates.

owed to pensioners in our local communities. AES seed funding for this service is expected to catalyse £1million ($1.5million) in additional funds over the next decade. The success of this initiative, led AES to commit another year of funding for the service in 2015.

• Cardiac Risk in the Young (CRY) received a £10,000 donation from AES in honour of a teenager local to Ballylumford Power Station. AES people have fundraised in a personal capcacity for CRY, as well as a significant donation from the AES Charity Committee. AES also donated two defibrillation machines to local organisations on the island of Islandmagee and advertised the defibrillation machine in Ballylumford Gateouse as available for use by local residents in an emergency.

• Belfast Exposed is Northern Ireland’s principal gallery of contemporary photography. “Without Power There is Darkness” was a photography project aimed at primary school children, encouraging them to think about energy and their individual role in protecting the environment and sustaining energy sources. The project was delivered by Belfast Exposed, supported by AES, and involved schools from Carrickfergus and Larne. The photos were exhibited in The Northern Ireland Assembly. At the request of teachers, the project will continue in 2015.

STAKEH

OLD

ER ENG

AGEM

ENT



Every day, AES people work towards our mission of improving lives by providing safe, reliable and sustainable energy solutions while providing communities and countries the opportunity for social and economic growth due to the availability of reliable, affordable electric power. Our people are the foundation of our ability to achieve the long-term goals we’ve set for the company, and we recognise our people are our greatest asset. The success we’ve achieved would not be possible without the leadership, diversity, skills and knowledge that our people bring to the work they do.

We refer to our permanent employees or fixed term youth programme participants that drive our business as AES People. As of December 31, 2014, AES UK & Ireland employed 282 people across our sites. 94 percent of our workforce were covered by collective bargaining agreements. AES in Northern Ireland has Recognition and Collective Bargaining Agreements with GMB, Prospect and Unite.

We consult with the Joint Staff Side Committee forum which is made up of staff representatives and Full Time Union Officials on all Human Resources Policies and Procedures.

Diversity and Equal Opportunity

Collectively, our workforce is comprised of individuals from diverse backgrounds, cultures and disciplines. As a result of this diversity, we do not view diversity simply as a responsibility to be met, a policy to implement, benefits to offer or a programme to run. Instead, we leverage our diversity and integrate it into how we work and how we compete to win in the global marketplace. Our view of diversity and the value it brings to our company and the communities we serve is not defined by religious belief, political opinion, community affiliation, racial group, gender, sexual orientation, marital status, age, disability or any other personal factor which is not relevant to performance of the job.

AES carries out many equality, diversity and inclusion activities that impact both the business and the wider community. We have a close relationship with the Equality Commission for Northern Ireland and are members of Engineering Employers Federation (EEF) which gives us guidance and support on employment law issues. We have a robust suite of HR policies and procedures including Equal Opportunities to ensure that all AES people are treated consistently and fairly. We provide additional information over and above what is required by law to the Equality Commission on our annual returns for Northern Ireland as part of our agreed Affirmative Action Plan.

OUR PEOPLE

Table 8: 2014 AES people demographics by Strategic Business Unit (SBU).

AES Global Total

AES UK & Ireland

Female

3,930

26

18,389

282

Total WorkforceMale

14,459

256

Under 30 years old

N/A

55

30-50 years old

N/A

119

Over 50 years old

N/A

108

OU

R PEOPLE



We formally review our processes and trends annually and every three years as part of the Equality Commission Article 55 Review, as well as participating in the MSCI Northern Ireland Fair Employment Annual Survey.

OCCUPATIONAL HEALTH AND SAFETY

At AES, we always put safety first — for our people, contractors and communities. We are committed to protecting our employees from work-related hazards as well as promoting their health while at work and at home. Accordingly, our goal is to provide our people with a safe and healthy working environment at all times, achieving a world-class safety culture.

Health And Safety Management

AES’ Safety Management System (SMS) process is built on the OHSAS 18001 Occupational Health and Safety Management System model. The SMS provides a consistent framework for all AES operational businesses and construction projects to set expectations, measure performance and drive improvements in our safety and health management. It covers 18 system elements to drive continuous performance improvement. The foundation of AES’ SMS is comprised of AES Safety Beliefs and Safety Principles which call on all AES people and contractors to demonstrate safety commitment and support, as well as reinforcing the importance of safety.

Also, AES’ SMS includes 31 specific operational and 40 construction safety standards that are based on global electric utility best practices. The standards cover areas such as fall prevention, electrical grounding, contractor safety management, job safety analyses and more. A diagram illustrating the 18 elements of the SMS process is provided in Figure 8.

Energy generation remains a male-dominated industry. However, AES is actively taking steps to increase our female workforce. In 2014 we participated in a career development programme for women to help to diversify the workforce. The Gender Initiative Programme ‘Semta’ is designed to help women further their careers. The four day workshop featured topics such as Future Focused, Confident Communication and Presentation Delivery with individual feedback.

The appointment of a female market business leader, President of AES UK & Ireland Carla Tully, has further demonstrated AES’ commitment to gender equality at senior leadership level, and 50% of our UK & Ireland senior leadership team is female – Carla Tully (President), Janice Hagan (HR Business Partner) and Julie Leeburn (Legal, Compliance & Communications Director).

We monitor all recruitment trends to track the progress of our efforts to increase females and Roman Catholics, recognising their under representation in our workforce. We also consider reasonable adjustments to assist disabled employees and have arranged redeployment opportunities to retain the employment of disabled employees. We also have provided English language lessons to employees coming from outside the UK.

OU

R PEOPLE



“Speaking Safely helpline”. Speaking Safely is a secure and anonymous way to report safety concerns or violations within AES and is available to all our people anywhere in the world. The reporting can either be by phone or online and to ensure confidentiality and anonymity the report is handled by a third-party vendor.

Under the AES Safety Management System (SMS) framework, all AES people and contractors must undergo training arranged by our local Health, Safety, Security and Environment (HSSE) teams to prevent work-related risks and occupational health hazards. The extent and type of training that AES

Health And Safety Training And Engagement

At AES we are committed to creating a workplace in which all people feel both empowered and responsible to tackle any safety concerns that they may have. We encourage everyone to speak freely, ask questions and to feel comfortable to voice concerns when it comes to safety. We also believe that all occupational incidents can be prevented.

In 2014 we created a new way to voice concerns about workplace safety and the environment - the

Figure 8: AES Safety Management System Elements

OU

R PEOPLE



UR PEO

PLE

To further embed participation, a monetary donation is made to the AES UK and Ireland Charity of the Year for every BBS Observation Card submitted and in 2014 an additional £13,000 was donated to Northern Ireland Children’s Hospice as a direct result of the BBS Programme.

REACTIVE SAFETY METRICS

Reactive safety metrics are those related to actual unsafe events that have occurred, and include first aid cases, OSHA recordable cases, Lost Time Incident (LTI) cases and occupational fatality incidents. AES reactive safety metrics reporting is substantially based on U.S. Occupational Safety and Health Administration (OSHA) reporting requirements (29 CFR 1904). All the metrics are tracked using the AESOnline system, AES’ global EHS management information system.

REACTIVE SAFETY METRICS: LOST TIME

INCIDENT RATES

AES has been able to significantly reduce the number of lost time occupational safety incidents impacting AES people and contractors by rigorous implementation of our Occupational Health and Safety (OHS) programmes across the globe during the last four years. In 2014 AES UK & Ireland achieved our lowest LTI rates for AES people. AES businesses calculate LTI rates for their employees and contractors based on OSHA standards, so that they are comparable across any industry or group. The standard is based on 200,000 labour hours, which equates to 100 workers who work 40 hours per week and 50 weeks per year.

people and contractors undergo is dictated by the safety and health risk each individual is exposed to. The most highly exposed individuals will be required to attend a substantial number of hours of training annually, while AES people and contractors with a lower level of exposure (e.g., administrative workers) participate in at least monthly safety meetings where safety and health performance updates and awareness are conveyed.

Behavioural Based Safety

The Behavioural Based Safety (BBS) programme has been an integral part of AES UK and Ireland for more than a decade. We want all AES people and contractors to carry out their duties in a safe manner, look out for those working around them to help them to work in a safe manner and for everyone to go home every day without any injury. Our BBS programmes enable the improvement of working practices and the recognition of those who strive to improve our safely performance and our safety culture. Everyone on the AES site can identify unsafe acts/conditions as well as safe acts/ conditions by using a BBS Observation Card and all AES people are encouraged to complete at least one observation each month.

All observations received are treated confidentially and are reviewed on a monthly basis by the HSSE team. Key issues, trends and improvement suggestions are discussed by the BBS Committee, which includes staff from across departments.

Ballylumford

Kilroot

1

1

2012

0

0

2014

0

1

2011

1

0

2013

Table 9: Lost Time Incidents– AES UK & Ireland People



UR PEO

PLE

• Private health care, physiotherapy treatments, stress management consultations, and occupational health services,

• A confidential, free Employee Assistance Programme (EAP) to provide support on issues such as anxiety, relationship difficulties, alcohol abuse, stress management and trauma,

• A generous Sick Pay policy for staff.

All AES people also can benefit from the services of International SOS, Inc., an AES contracted service, to ensure proper care in the event of a work-related illness or injury or travel-related emergency, either medical or associated to a special situation such as an evacuation due to civil unrest.

EXTERNAL SAFETY RECOGNITIONS

Our business has received external safety awards as recognition of our strong safety culture and performance. Based on our 2014 performance, Kilroot Power Station was presented with the Royal Society for the Prevention of Accidents (RoSPA) Gold Medal Achievement for Occupational Health and Safety, in recognition of six consecutive Golds. Ballylumford Power Station was presented with a RoSPA Gold award for Occupational Health and Safety.

The LTI rate reductions achieved from 2011 to 2014 is attributable to our culture and focus on safety. However, to avoid complacency, during 2014 we continued multiple proactive initiatives such as online safety leadership training and continuous tracking of 16 different safety management KPIs to continue driving safety performance improvement.

Health And Wellness Management

At AES we believe people have to feel motivated and satisfied in their workplace. The Human Resources Department and the Health and Safety Department work closely together to provide a complete health and wellbeing support function to all AES people.

We monitor health and wellbeing through our annual Health Surveillance which looks at a range of issues and deals with them on a one to one basis. After seeing the reports from the surveillance, if there are any major issues highlighted we tackle these head on through company-wide activities.

AES UK & Ireland offers benefits, services and policies to our people, many agreed in line with staff and union representatives. Some of these programmes include:

• Ergonomic workstation assessment and improvements, including Display Screen Equipment (DSE) Assessments,

• Health campaigns including smoking cessation, nutrition improvement, and annual flu vaccinations,

Ballylumford

Kilroot

0

0

2012

0

2

2014

1

3

2011

0

0

2013

Table 10: Lost Time Incidents– Contractors



UR PEO

PLE

These placements provide vocational training and relevant experience in the field associated with their degree. Undergraduate placements are currently available for students interested in Chemical Engineering, Electrical Engineering, Mechanical Engineering, HR, IT and Procurement. In 2014, AES supported 9 undergraduate students.

Our paid Graduate Programme builds on this success, bringing back selected Undergraduate Programme participants for a further year of development following their graduation. These young people are able to develop enhanced skills and take on a wide range of projects and responsibilities. In 2014, AES supported 3 graduate students.

Undergraduate and Graduate Programme participants enjoy a high level of employment after university, and many stay with AES in permanent roles following the end of the programmes.

TRAINING AND EDUCATION

AES is committed to making a positive contribution to society, in the workplace and communities in which we operate. We’re privileged to be able to provide education and development opportunities for young people through our long-standing Youth Development Programmes. AES is investing significantly to ensure that we have the highly productive and skilled workforce required to power our industry in the future.

We run a highly competitive apprenticeship programme across Ballylumford and Kilroot Power Stations in Northern Ireland.

Apprentices participating in the three year accredited course receive an external qualification, such as a Business and Technology Education Council (BTEC) Level 3 Qualification, and meaningful experience to prepare them for a career in the associated field. The vast majority of AES apprentices go on to secure a permanent job after completing their apprenticeship programme. In 2014, we took on six apprentices and retained six apprentices hired in 2012 for further employment.AES offers a series of year-long, paid work placements for undergraduate and graduate students across Ballylumford and Kilroot Power Stations.


AES UK & Ireland 2014 Sustainability ReportIN

DEX

OF FIG

URES A

ND

TABLES

INDEX OF FIGURES:

FIGURE 1: SCALE OF THE AES CORPORATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6FIGURE 2: TOTAL MW BY FUEL TYPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7FIGURE 3: TOTAL MW BY SBU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7FIGURE 4: SCALE OF AES UK & IRELAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8FIGURE 5: NORTHERN IRELAND GENERATION CAPACITY 2014 . . . . . . . . . . . . . . . . . . . . . . . . 8FIGURE 6: AES CYBERSECURITY PROGRAMME ELEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15FIGURE 7: ELEMENTS OF AES ENVIRONMENTAL MANAGEMENT SYSTEM . . . . . . . . . . . . . . 18FIGURE 8: AES SAFETY MANAGEMENT SYSTEM ELEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

INDEX OF TABLES:

TABLE 1: NET ENERGY GENERATED (GWH) BY PLANT AND FUEL TYPE . . . . . . . . . . . . . . . . . 14TABLE 2: COMMERCIAL AVAILABILITY BY ENERGY STOURCE 2011-2014 . . . . . . . . . . . . . . . . 14TABLE 3: SCOPE 1 GREENHOUSE GAS EMISSIONS 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19TABLE 4: SCOPE 2 GREENHOUSE GAS EMISSIONS 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19TABLE 5: SO2, NOX AND PARTICUALTE EMISSIONS 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20TABLE 6: WATER WITHDRAWAL AND DISCHARGE 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21TABLE 7: MAIN STAKEHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24TABLE 8: 2014 AES PEOPLE DEMOGRAPHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29TABLE 9: LOST TIME INCIDENT RATES – AES UK & IRELAND PEOPLE . . . . . . . . . . . . . . . . . . . . 32TABLE 10: LOST TIME INCIDENT RATES - CONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

ENGAGE IN THE CONVERSATION

FollowAES_UKIreland/Twitter

ViewAES.com/YouTube

ConnectAES.com/LinkedIn

ReviewAES.com/Glassdoor

AES.com/YouTube

AES.com/LinkedIn

AES.com/Glassdoor

https://twitter.com/aes_ukireland

AES.com/LinkedIn

AES.com/YouTube

AES.com/Glassdoor

AES UK & Ireland 2014 Sustainability Report -...

Documents

Transcript of AES UK & Ireland 2014 Sustainability Report -...