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I want you to care for the environment and communities

In this section, we look at the work we’re doing to care for the environment and local communities. We also describe how we'll tackle key issues such as air quality and reducing our carbon footprint.

As a responsible business, we are committed to delivering environmental and community benefit, prioritising the issues that matter most to stakeholders.

I want you to care for the environment and communities

We care about the environment and the communities we serve. 

We believe this is vital if we are to operate as a socially responsible business and play our part in helping Britain to meet the challenges of decarbonisation.

These challenges have been laid out through people across the UK and beyond, voicing their concerns about climate change, culminating in the government setting out legally binding targets to achieve “net zero” carbon emissions by 2050.  

We'll step up to meet this challenge by embedding sustainability in our business strategy and using it to guide the way we work.  We're driving more efficient performance and future-proofing our organisation as the environmental and social landscapes change and we want to protect the environment by providing options to reach net zero carbon by 2050 at lowest impact on society.

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Golden Thread

Golden Threads demonstrate how the voice of our stakeholders is reflected in our business plan outputs. And how our business plan delivers value for consumers.

I want you to care for the environment and communities

Business Plan Annexes

Compressor Emissions Compliance Strategy
This document details National Grid Gas Transmission’s (NGGT) decision-making processes and plans for complying with emissions legislation impacting compressors and other assets through RIIO-2 and beyond to 2030. This legislation is the Industrial Emissions Directive (IED) and the Medium Combustion Plant Directive (MCPD).

Environmental Action Plan
Our plan for reducing our impact on the environment

Responsible Procurement Action Plan
Our plan for enhancing responsible procurement through our supply chain

Environmental Management System

Environment Business Management System

Environmental Benchmarking

Environmental Engagement Report
Summary of engagement as presented to the NGGT Stakeholder Group.

Demolition Engagement Report

Quarry and Loss Supporting Information

Supply chain sustainability benchmarking

Investment Decision Packs

Investment decision packs set out the technical need case, options assessed and proposed investments.


Redundant Assets Justification Paper
Our investment proposals for the management of our Redundant Assets across the RIIO-2 and RIIO-3 regulatory periods

Wormington Compressor Engineering Justification Paper
Our proposals at the Wormington compressor site to ensure sufficient network capability to fulfil our customer and operational requirements, whilst also complying with the Medium Combustion Plant Directive (MCPD) emissions legislation.

Peterborough Huntingdon Compressors Engineering Justification Paper
Our proposals at the Peterborough and Huntingdon compressor sites to ensure sufficient network capability, to fulfil our customer and operational requirements, whilst also complying with the Medium Combustion Plant Directive (MCPD) emissions legislation.

King's Lynn Compressor Engineering Justification Paper
Our proposals at the King’s Lynn compressor site to ensure sufficient network capability to fulfil our customer and operational requirements, whilst also complying with the Medium Combustion Plant Directive (MCPD) emissions legislation.

St Fergus Investment Programme Justification Paper
An overview of our RIIO-2 and RIIO-3 investment proposals at the St Fergus Gas Terminal to ensure that we continue to meet stakeholder requirements

Low Carbon Vehicle Fleet Justification Paper
Detailed justification behind our proposals to transition the GT operational vehicle fleet to 30% low carbon alternatives by the end of RIIO-2.

The cost benefit analysis below demonstrates the investment modelling for supporting our decision through various options considered. 

Cost benefit analysis for I want you to care for the environment and communities

 

Our Proposal: Air quality – compressor emissions compliance

What our stakeholders have told us:

Domestic consumers consider air quality to be important.

CommitmentsOutput type
Wormington: To meet customer network capability needs, we will ensure compressor emissions compliance at Wormington through delivery of two new units capable of supporting flows of 80 mscm/d that are broadly equivalent rated power to existing capability.Price control deliverable 

Consumer benefit: 

Compressors are vital to moving gas around the system, enabling consumers to use gas as and when they want.


What our stakeholders have told us:

Stakeholders value our work on reducing emissions to improve local air quality and believe we should get on with it as soon as possible.

CommitmentsOutput type

King’s Lynn and Peterborough:

To meet customer network capability needs, we propose to deliver two new MCPD compliant compressor units at King’s Lynn and one unit at Peterborough. PCDs to reach front end engineering design (FEED) in RIIO-2.

New PCDs to be set at the point of FEED to deliver compressor emissions compliance (to be completed in RIIO-3). Post-FEED costs not in baseline and triggered by UM.

PCD for FEED at King’s Lynn xxxxxxx and at Peterborough xxxxxxx See annex A3.01.

 

UM (King’s Lynn xxxx and Peterborough xxxxx). See annex A3.02. Trigger: Year 2 (end of FEED) for King’s Lynn, Year 4 (end of FEED) for Peterborough

St Fergus (whole site):

To meet customer network capability needs, we propose to deliver three new emissions compliant units at St Fergus. We will reach FEED in RIIO-2.

New PCD to be defined at the point of FEED to ensure sufficient compliant capability to deliver at St Fergus compressor station (to be completed in RIIO-3). Three units anticipated at this stage; post FEED costs not in baseline and triggered by UM.

PCD for FEED xxxxxxxx. See annex A3.01.

Uncertainty mechanism (£118m)

Trigger: Year 2 (end of FEED)
Decide on decommissioning or derogation for RIIO-3 for other affected MCPD units at Cambridge, Diss, Chelmsford, Huntingdon, Alrewas, Kirriemuir, St Fergus, Wisbech.

Commitment (legislative driver)

Consumer benefit: 

These proposals support an affordable energy bill through prioritising and innovating to ensure compressor compliance is met in a cost-effective way.

Our proposals also facilitate delivery of a sustainable energy system through improving air quality via our compressor emissions compliance programme, ensuring the most polluting compressor trains are decommissioned and replaced where necessary with cleaner machinery.

Utilising a reopener mechanism for compressor emissions costs where there is uncertainty around solutions and costs ensures the most cost-effective solution is taken forward.

 

What our stakeholders have told us:

Stakeholders value our work on reducing emissions to improve local air quality and believe we should get on with it as soon as possible.

Enable reduction in our NOx emissions from the business in RIIO-2 by maintaining and operating our best available technique (BAT) equipment as the lead units for compression.

Commitment (legislative driver).

Measure: Reduction in NOx emissions per hour of gas turbine running, dependent on supply and demand patterns. 

Consumer benefit: 

Facilitate delivery of a sustainable energy system through improving air quality.

Our priorities: Our climate commitment’

What our stakeholders have told us

Commitment

Output type

Reducing our carbon footprint should always be a consideration when carrying out operations, but without large impacts on stakeholders’ Produce an annual environmental report (including BCF reporting).Licence obligation
Reducing our carbon footprint should always be a consideration when carrying out operations, but without large impacts on stakeholders’ Continue to participate in the EU-ETS as required and use this as an opportunity to provide focus on our CO2 emissions across the business.

EAP NGGT commitment

(legislative driver)

Customers would like to see fugitive emissions measured to allow more informed decisions

Reduce methane emissions (CO2e) from leaks on the network during RIIO-2 – establish a baseline for methane emissions leaks on the network through improved monitoring and use that information to understand how to begin to reduce these where possible.

EAP NGGT commitment

 

We should be applying a single cost of carbon in our decision-making processes

Continue to use a single consistent carbon price in our investment decisions for each tonne of controllable carbon dioxide equivalent (CO2e) emitted.

EAP NGGT commitment

 

Current non-operational emissions should be addressedReplace 100% of our operational vehicle fleet with alternative fuel vehicles where there is a market alternative today (in 2019). Currently, this results in 30% of our operational fleet that will be delivered through purchasing 80 vehicles and install charging points at 45 sites with aim to reduce carbon emissions from operational transport by 22% on RIIO-1 averages to end of RIIO-2. Measure: tCO2e, % vehicles replaced.EAP NGGT commitment
Current non-operational emissions should be addressedReduce carbon emissions for our business transport by 10% on RIIO-1 averages to end of RIIO-2 – Reduce vehicle use by promoting rail and virtual meetings, promote EVs on company car scheme and install electric car charging points at compressor sites. Measure: tCO2e.EAP NGGT commitment
Current non-operational emissions should be addressedWe will focus on an efficiency-first approach to decrease the carbon emissions from our office energy use by 20% from a 2019/20 baseline to 2026. Measure: tCO2e.EAP NGGT commitment
Current non-operational emissions should be addressedWe will purchase 100% of electricity for our offices from renewable sources.EAP NGGT commitment
We should consider generating own-use electricity from on-site renewablesInstall renewable generation on our operational sites for our own use during RIIO-2, starting with compressor sites. Measure: # sites with renewable generation.

EAP NGGT commitment

We should carbon-offset all construction activity

Achieve carbon neutral construction for major projects by 2025/26 by further implementing PAS20260 and PAS2080, supported by an offsetting policy and based on current business assumptions that 26,000tCO2e can be offset with up to £310k. Measure: PAS 2060/80 compliance, construction tCO2e in 2026.

EAP NGGT commitment

Work with supply chain to reduce emissions 75% of National Grid's top 250 suppliers (by category/spend) will have carbon reduction targets. Measure: % suppliers with carbon reduction targets.EAP NG UK commitment
Stakeholders are keen to know NGGT’s plans on net zero targets and would like to see a discussion of this in the business plan. They have asked NGGT to provide a much clearer explanation of how our plan fits (or not) with the delivery of net zero, following recent legislation

We are proposing a reopener relating to net zero to ensure we are able to respond quickly to work towards net zero goals.

Uncertainty mechanism

(annex A3.02).

 

Trigger: End of year 2,

1% baseline revenue threshold

Consumer benefit:

These commitments support a sustainable lower carbon future by focusing on reducing greenhouse gas emissions such as methane, carbon dioxide and others to reduce our impact on climate change, with clear benefits for society.

Decarbonising our fleet will deliver consumer benefit through reduced local air pollution from particulates.

Carbon neutral construction provides a consumer value proposition valued at £0.3m (for more information on CVP3 please see annex A10.05).

Methane emissions reductions could provide a consumer value of £2.2m (for more information on CVP6 please see annex A10.05).

 

Please see annex A3.03 for further information on our incentive proposals.

What our stakeholders have told us

Commitment

Output type

Get the right incentive framework to deliver maximum benefit to consumers

Shrinkage incentive

Retain shrinkage incentive scheme with access to seasonal markets to drive further consumer savings for RIIO-2. This incentive aligns our interests with that of consumers to minimise the cost of shrinkage.

ODI

proposed cap: £5m / collar: £5m pa.

Consumer benefit:

The incentive means that we manage shrinkage to minimise consumer cost exposure by procuring shrinkage energy at below average market price.

What our stakeholders have told us

Commitment

Output type

Get the right incentive framework to deliver maximum benefit to consumers

EAP incentive We are proposing a potential new ODI to incentivise additional performance above and beyond our baseline commitments in measurable areas in our environmental action plan.

ODI

proposed cap: £2.5m/

collar: £2.5m pa.

Get the right incentive framework to deliver maximum benefit to consumers

GHG incentive Retain GHG incentive scheme proposing caps and collars to further drive performance.

ODI

proposed cap: £1.5m/ collar: £1.5m pa

Target: 2,897 metric tonnes.

Consumer benefit:

Improving the environment (air quality, carbon emissions, local community and the environment) is very important for domestic consumers. This incentive will help drive progress in this area over and above our baseline.

Our proposal: Responsible asset use and caring for the natural environment

What our stakeholders have told us:

Demolish assets on a risk-based approach, prioritising assets that have the largest impact on stakeholders. We should consider how to repurpose our assets and use our land to maximise environmental benefit.

 

Commitment

Output type

Address redundant assets across 80 assets, asset groups or sites.

 

 

 

Act as custodians of our redundant sites by ensuring we reinstate them to a net gain in environmental value.

Price control deliverable

(£82.6m). See annex A3.01.

 

EAP NGGT

commitment

Consumer benefit: 

This supports an affordable energy bill through protecting future consumers from the costs of disposing of assets they may not have benefited from. Supports a sustainable lower carbon future through responsible demolition including asset repurposing, releasing materials back into the value chain to reduce the need to mine raw materials. Improving biodiversity on non-operational land and reconstructing the environment when we have demolished a site, to bring positive benefits to nature and communities.


What our stakeholders have told us:

Stakeholders would like NGGT to return land to a good state when they have used. Stakeholders would like NGGT to consider supply chain practices and their impacts on the environment and communities.

Commitment 

Output type

10% increase in environmental value on all non-operational land by the end of the RIIO-2 period.

The GT estate is currently 1,093hectares and environmental value is measured in Biodiversity units and £ natural capital. Measure: £ natural capital biodiversity (# units)

EAP NGGT commitment

Deliver 10% Net Gain in environmental value (including biodiversity) on all planned construction projects (including those delivered by third parties).

Measure: # projects and % net gain

EAP NGGT

commitment

We will lead in transparency on capital carbon and natural capital using data and tools to collaborate and drive environmental progress. We aspire to have a consistent industry approach to capital carbon and natural capital by 2026.

EAP NG UK

commitment

We will reduce the waste we create at our offices (waste tonnage) by 20% from a 2019/20 baseline.

Measure: waste in tonnes.

 

EAP NG UK

commitment

We will recycle 60% of our office waste

Measure: % of waste recycled out of total.

EAP NG UK

commitment

We will reduce the waste intensity of our construction projects year on year from a 2019/20 baseline.

Measure: Baseline tbc, likely tonnes waste/£100,000

EAP NGGT commitment

On construction projects, we will achieve zero waste to landfill and we will increase the recycling or reuse materials by 2026.

Measure: % of waste recycled out of total.

EAP NGGT commitment

We will work with contractors to measure the proportion of recycled materials used on construction projects and will set a target during the RIIO-2 period to increase from this baseline. Measure: to be set during RIIO-2.

EAP NGGT commitment

Extend the life of equipment where appropriate by refurbishment.

EAP NGGT commitment

Pilot and implement circular economy principles for raw materials and goods procured and existing assets.

EAP NGGT commitment

Reduce water use in our offices by 20% by the end of RIIO-2 compared to 2019/20 baselines. Measure: % reduction in water used.

EAP NG UK commitment

 

Consumer benefit: 

Our work in these areas delivers on the consumer priority “I want you to facilitate delivery of a sustainable energy system” to minimise our impact on the environment and bring positive benefits to nature and communities. 

Enhancing the value of our natural assets on our non-operational land by 10% provides a consumer value proposition valued at £1.75m (for more information on CVP4 please see annex A10.05). 

 


What our stakeholders have told us:

We would like to hear more about sustainable procurement

 

Commitment

Output type

We will implement the ISO20400 sustainable sourcing process. Measure: alignment to ISO20400, (verification)

# category strategies considering sustainability

EAP NG UK Commitment

 

Consumer benefit: 

Our work in these areas delivers on the consumer priority “I want you to facilitate delivery of a sustainable energy system” to minimise our impact on the environment and bring positive benefits to nature and communities. 

Enhancing the value of our natural assets on our non-operational land by 10% provides a consumer value proposition valued at £1.75m (for more information on CVP4 please see annex A10.05). 

Our proposal: Quarry and loss

What our stakeholders have told us

Commitment

Output type

Consumer benefit

The majority of domestic and non-domestic consumers find the current proposal on compensating landowners acceptable.

We must be efficient and affordable.

Manage contractual obligations relating to quarry and loss efficiently. Costs relating to loss of development and sterilised minerals to be subject to a reopener.

Commitment and uncertainty mechanism Trigger: Year 2, 1% baseline trigger threshold

Delivering contractual obligations at lowest possible cost helps keep consumer bills lower.

Our proposal: Supporting communities

What our stakeholders have told us

Customers value the work we do in this area and think it should make it more visible.

We should continue to look for opportunities to support local communities within the realm of our business.

Activities should promote social sustainability in both the short and long term, these programmes also need to be well advertised to everyone in the community

Commitment

Output type

Consumer benefit

We are developing national and local skills development partnerships and initiatives, with a focus on the lower income communities we serve. We aim, across the UK regulated businesses, to give access to 6,000 young people from these communities over the next five years, tracking their progress from first interaction right through to potential employment in National Grid, our partners, our suppliers, or adjacent companies and industries.

NG group commitment

We are dedicated to working with young people, who are the future of our business, and our country. The Engineering UK 2018 report showed that engineering companies will need 203,000 more people with Level 3+ engineering skills every year to 2024.

We will assign 0.3% of all major project funding to community-led community improvement in locations where we have a presence, without requesting additional funds

EAP NGGT commitment

Assigning 0.3% of major project funding to community improvements provides a consumer value proposition valued at £0.6m (for more information on CVP5 please see annex A10.05).

Continue to fund the community-led grant scheme of up to £20k near to a construction project and £10k near our operations

EAP NG UK commitment

Assigning 0.3% of major project funding to community improvements provides a consumer value proposition valued at £0.6m (for more information on CVP5 please see annex A10.05).

Educate the public about environmental issues through outreach linked to major compressor emissions projects and through our education centres.

EAP NGGT commitment

Assigning 0.3% of major project funding to community improvements provides a consumer value proposition valued at £0.6m (for more information on CVP5 please see annex A10.05).

Require all our suppliers, Tier 1 and beyond, pay the real living wage to their UK workers and will verify this at Tier 1 in relevant categories. Measure: # of suppliers signed up to Skills Accord (or equivalent), % technical headcount under training plans

NG UK commitment

Responsible procurement activities create positive effects down the supply chain with positive impacts on communities. 

Deliver impact in supply chain at scale by engaging with the supply chain through relevant forums. Measure: # actions driven through engagement

# suppliers actively engaged through SCSS scorecard

NG UK commitment

Responsible procurement activities create positive effects down the supply chain with positive impacts on communities. 

Promote skills development in the supply chain by requesting that a minimum of 5% of the supply chain technical headcount is upskilled annually. Measure: # of suppliers signed up to Skills Accord (or equivalent)

% technical headcount under training plans

NG UK commitment

Responsible procurement activities create positive effects down the supply chain with positive impacts on communities. 

Use influence in sector to identify and address potential humans rights risks in the supply chain. Measure: # action plans in place with suppliers

NG UK commitment

Responsible procurement activities create positive effects down the supply chain with positive impacts on communities. 

Promote equal opportunities in the supply chain. Measure:  # events supported to identify and support new suppliers, # of projects using CompeteFor (a tool used to advertise opportunities in the supply chain)

NG UK commitment

Responsible procurement activities create positive effects down the supply chain with positive impacts on communities. 
Hands on table working on National Grid Gas RIIO-2 business plan

How you shaped our business plan

Here you can find information about how we consulted with our stakeholders on our business plan.

This includes webinars, reports and consultation documents and blogs supporting our business planning activities.

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