Wstw nachhaltigkeitsbericht 2015 kurzfassung englisch

WIENER STADTWERKE OUR IMPACT IN A NUTSHELL

INSPIRATIONS FOR THE CITY. SUSTAINABILITY REPORT 2015 EXECUTIVE SUMMARY

Wiener Stadtwerke

2

/ 01 KEY PERFORMANCE INDICATORS Financial indicators in EUR million (= m)

Unit

2014

2013

Consolidated turnover

EUR m

2,940.3

2,904.8

3,044.4

Consolidated operating result

EUR m

133.2

-

-30.6

-385.7

Consolidated financial result

EUR m

-102.7

-302.2 %

50.8

55.1

Consolidated EBT

EUR m

30.5

51.7 %

20.1

-330.6

Consolidated net result for the period

EUR m

128.4

26.3 %

101.7

0.0

Total cash flow

EUR m

70.2

187.1 %

24.4

118.9

Investments in tangible assets

EUR m

689.0

-13.0 %

791.8

813.9

Depreciation

EUR m

533.0

2.9 %

517.9

-787.4

Operational indicators

Unit

2015

Electricity sales

GWh

9,444

Natural gas sales

GWh

District heating sales

GWh

Passengers Wiener Linien Passengers Wiener Lokalbahnen Total passengers

1

1

2015

+/- % 1.2 %

+/- %

2014

2013

1.0 %

9,349

9,527

6,633

3.0 %

6,441

7,793

5,681

8.5 %

5,238

6,167

Number, m

939.1

0.8 %

931.2

900.0

Number, m

15.1

4.1 %

14.6

13.8

Number, m

954.2

0.9 %

945.8

913.8

Annual tickets Wiener Linien

Number

698,968

7.8 %

648,227

582,114

Funeral Services (burials and cremations)

Number

9,264

-0.4 %

9,301

10,130

Coffin and urn burials

Number

13,419

3.6 %

12,953

13,274

Parking spaces

Number

20,064

4.3 %

19,238

16,564

Employee indicators 2,3

Unit

2015

Employees, total, without P&N, annual average

FTE

16,097

-0.1 %

16,114

16,102

Employees, total, annual average

FTE

16,257

-0.1 %

16,276

16,276

Percentage of women, total (head counts)

%

17.2 %

-

17.0 %

16.9 %

Proportion of women in the 1st and 2 nd management level, excluding apprentices

%

23.6 %

-

21.4 %

19.2 %

Percentage of women in admissions, without P&N

%

24.7 %

-

22.6 %

21.6 %

Apprentices, total

Head counts

390

Proportion of female apprentices

%

20.5 %

-

20.6 %

21.9 %

Turnover rate, without P&N

%

4.5 %

-

4.4 %

5.9 %

Accident rate (notifiable occupational accidents per 1,000 employees), without P&N

Accidents/ 1.000 empl.

19.4

-10.6 %

Training days overall, without apprentices, without P&N

Days

Personnel expenses

EUR m

56,215 1,071.4

+/- %

0.2 %

-14.5 % -8.1 %

1

Without disabled transportation.

2

Information, unless otherwise specified, including apprentices and those on parental leave and national service (P&N).

3

All gender information is without EnergieAllianz Austria.

2014

389

21.7 65,753 1,165.4

2013

402

20.0 71,747 1,166.6

Sustainability report 2015 – Executive summary

Electricity production indicators

Unit

Electricity production, total

GWh

2015 5,011

3

+/661

2014 4,350

2013 3,974

+/- GWh

Source • Thermal power plants

%

80.9 %

519

81.2 %

76.6 %

%

12.1 %

3

13.8 %

17.6 %

• Wind turbines

%

3.2 %

59

2.3 %

2.4 %

• Photovoltaics

%

0.2 %

4

0.2 %

0.1 %

• Biomass plants

%

3.1 %

52

2.4 %

3.3 %

• Solid waste incineration plants

%

0.6 %

25

0.1 %

0.0 %

20.5 %

25.0 %

• Hydropower plants

4

5

Share of electricity from renewable sources related to total electricity production • Incl. investments

%

Heat production indicators

Unit

Heat production, total

GWh

20.4 %

2015 4,982

-

+/2.6 %

2014 4,855

2013 5,607

+/- GWh

Source • Combined heat and power plants (CHP plants)

%

60 %

212

57 %

55 %

• Solid waste incineration plants

%

23 %

159

21 %

17 %

• Peak boilers (gas, oil)

%

8%

-258

14 %

19 %

• Biomass plants

%

4%

14

4%

5%

• Others 6

%

5%

-1

9%

7%

21.4 %

19.3 %

Share of heat from renewable sources related to total heat production • Incl. investments 7 Heat production, total, incl. investments

% 7

Emission indicators

22.4 %

GWh

5,676

Unit

2015

2.1 %

+/- %

5,560

2014

6,339

2013

Greenhouse gas emissions SCOPE 1: Direct emissions, CO2-eq.

1,000 t

SCOPE 2: Indirect emissions, CO2-eq.8

1,000 t

SCOPE 3: Other indirect emissions, CO2-eq.

1,000 t

2,978

6.8 %

-

-

2,789 -

2,350 -

2,080

-3 %

2,142

2,006

Air pollutants, direct emissions (stationary plants) Nitrogen oxides (NOX) 9

t

547

13 %

486

521

Sulphur oxides (SO2) 9

t

68

-49 %

133

36

48.1

-27 %

Air pollutants, direct emissions (vehicle fleet Wiener Linien, without rail vehicles) Nitrogen oxides (NOX)

t

Particulate matter (PM10)

t

0.08

73 %

66.0 0.04

83.5 0.02

4

Own thermal power stations (net) + subscription rights

7

Incl. MSWI Pfaffenau (operational management)

5

Own hydropower plants (net) + subscription rights at home + subscription rights

8

The database for SCOPE 2 emissions calculation is unified in 2016.

9

Excl. subscription rights

on Innkraftwerke (Germany) 6

Grid and decentralized plants

At all tables in this report possibly occurring rounding differences are not compensated.

Wiener Stadtwerke

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WELCOME MESSAGE

Mayor and Governor Dr. Michael Häupl on Wiener Stadtwerke Sustainability Report V

ienna is one of the most attractive cities in the world. In 2015, Vienna was rated for the sixth time in a row as the city with the highest quality of living! Services of general interest and public infrastructure are essential components of the high quality of living in Vienna. It is very important to maintain or even improve this high quality. In the coming years, massive challenges will have to be mastered. The trend is clear: Vienna is growing. In the near future, more than 2 million people will live in Vienna.

Thus Vienna is the fastest growing city in Central and Eastern Europe. These demographic trends will affect all areas of public services.

Even the current SORA City Barometer 2016 shows that people living in Austria appreciate the quality of life in their places of residence now and in the past few years. We aim to maintain this standard. This is an enormous challenge and involves high costs.

Major challenges for cities in the 21st century, therefore, are on

the one hand a targeted strengthening of economies as a basis for social justice and on the other hand an economical use of the resources available to us.

Our ultimate goal is to make Vienna the most socially engaged two-million metropolis, by securing jobs and ensuring economic growth. Therefore, we invest, every year, in 10,000 new homes, 2,000 new community homes, kindergartens, schools and more.

Likewise, the infrastructure will "grow" - by improvement of the urban transport network, new transport routes and innovative forms of mobility, by expanding renewable energy supply and environmentally friendly district heating and cooling.

This Sustainability Report impressively demonstrates Wiener Stadtwerke’s far-reaching impact on the Vienna region: The Group offers secure jobs for more than 16,100 people. With its sustainable investments in future infrastructure Wiener Stadtwerke significantly contributes to ensuring the high quality of life in Vienna and also to the regional added value at a high degree. This provides not only economic growth, but also ensures more jobs in the region and thus also promotes social cohesion.

At the same time, Wiener Stadtwerke is fully meeting its corporate social responsibility – as may be expected from a company in municipal ownership. This is documented not only by the numerous awards in recent years for innovative products and services or their excellent apprentice training program.

Dr. Michael Häupl, Mayor and Governor of Vienna

T

he comprehensive sustainability program contains a broad range of objectives and measures aimed at ensuring the best quality of life for all Viennese citizens with the most economical use of resources and social participation. This is very important to me because Vienna will remain worth living in for all – where everyone is given all opportunities to set up on his or her own. Shaping this social and cosmopolitan future is what matters now. We will meet this challenge together!

With this in mind, I would like to offer my warmest thanks to the Board and employees of Wiener Stadtwerke.

Dr. Michael Häupl Mayor and Governor of Vienna

Sustainability report 2015 – Executive summary

WELCOME MESSAGE

Ulli Sima, Executive City Councillor for Environment and Wiener Stadtwerke V

ienna is and remains a model city for environmental protection.

The world's highest quality of life, a high level of satisfaction among Vienna’s citizens with the local environment and the key areas of general interest confirm that we are on track. Since 2015, I have been not only Executive Councillor for Environment but have also held responsibility for Wiener Stadtwerke and thus for public transport and energy supply in Vienna. My primary concern is now to create a real general interest department. Now and in the future, strong services of general interest are at the centre of our environmental policy. I clearly reject any privatization tendencies.

We can provide increased synergies for our growing city, now that the excellent water supply, the high-tech incinerators, modern wastewater treatment, energy supply and public transport are in one hand, in my “new” department. This is also very important in view of the city's expected growth.

It constitutes a major challenge, in a city likely to reach two million people in the not too distant future, to supply all the goods and services which are regarded as essential for human existence in our society. The sustainability strategy of Wiener Stadtwerke contributes significantly to the implementation of our long-term target: Preserving and improving the high environmental quality and quality of life for future generations. This includes clean air and pure water, intact soils, parks and green spaces, rich in flora and fauna – and, of course, protection and security against the impacts of climate change. This requires a joint effort by all players because there is still much to do. Here, businesses are thus called upon.

For many years we have supported Viennese companies with the help of the EcoBusinessPlan Vienna, the environmental service package of the City of Vienna, in the implementation of environmental measures. In addition, this has helped to reduce their operating costs. The aim is to achieve benefits for the environment and business through ecological management.

The Wiener Stadtwerke Sustainability Report 2015 impressively shows that a municipally owned company achieves economic success under sustainable management, but makes a substantial contribution to the quality of life and environment in a big city.

This long-term return will ultimately benefit all citizens of Vienna.

Ulli Sima, Executive City Councillor for Environment and Wiener Stadtwerke I want to express my thanks to all the employees and the Management Board of Wiener Stadtwerke for their great commitment and high level of expertise in each of the main sectors of sustainability. I look forward to successful, joint work towards achieving our sustainability goals. The people and the environment in and around Vienna will benefit from our success.

Ulli Sima Executive City Councillor for Environment and Wiener Stadtwerke

5

Wiener Stadtwerke

6

WELCOME MESSAGE

Director-general Dr. Martin Krajcsir and managing director Robert Grüneis D

ear reader, 2015 was an important milestone in the long-term sustainability strategy of Wiener Stadtwerke. For the first time, we document the main expectations of our stakeholders as a result of our materiality analysis. And in accordance with the requirements of the International Integrated Reporting Council (IIRC), it is depicted in a comprehensive graph, how Wiener Stadtwerke with its business model creates values for the company itself and added value for its stakeholders and how ultimately society benefits thereof.

In the current sustainability program we present our binding longterm goals and measures.

We are very proud that we publish this year our fifth Sustainability Report since 2008. This Sustainability Report documents transparently and comprehensibly the way we live up our social responsibility.

We are firmly committed to the idea that especially our company – being 100% owned by the City of Vienna – has to set a good example in assuming corporate social responsibility. Therefore we have aligned our strategy continuously on sustainability in recent years, to achieve sustainable management throughout the company. We have systematically identified and worked on the most important ecological and social challenges.

In recent years we have made great progress in comprehensively integrating sustainability into our business processes. Therefore, and as the principles of the United Nations on human rights, labor standards, environmental protection and anti-corruption are also ours, we joined the UN Global Compact already in 2008. With this Sustainability Report, we publish also our communication on progress on the implementation of the principles of the UN Global Compact.

The effects of climate change are becoming clearer. The Member States of the European Union have to achieve the ambitious objectives of the European climate and energy policy by 2030.

In particular, it is about: • a reduction in greenhouse gas emissions by at least 40% • increasing the share of renewable energy in total energy consumption to at least 27 % • an increase in energy efficiency by at least 27 % compared to the status of 1990.

These goals can be achieved only through joint efforts at the international and national level. We are aware of our responsibility as municipal infrastructure service provider, and focus our strategic planning on it.

Especially the Smart City Vienna framework strategy adopted by the municipal council forms the basis for our corporate strategy for the next years. It specifies how especially climate targets in detail can be achieved and where Vienna wants to be in 2030 or 2050.

Wiener Stadtwerke as the largest energy and mobility service provider in Greater Vienna considers it as its most important task to give best possible support to the City of Vienna in achieving these goals – as 40% modal split share for public transport by 2020 or reducing greenhouse gas emissions per capita by 35% (compared 1990) by 2030. So we are working constantly on the development of renewable energy sources for electricity and heat, the expansion of public transport services and to increase customer satisfaction, so that these offers are also well received.

Climate and environmental protection, public services and customers satisfaction are therefore central fields of activity of our sustainability program. Here the large sustainability goals can be found, broken down to the business and sphere of influence of Wiener Stadtwerke, in combination with defined individual goals, concrete measures and deadlines. Each year, we report clearly and comprehensibly about our progress on achieving our goals. In particular, we continue to pursue our goals for expansion of renewable energy and a 40% share of public transport in the modal split. We have reached nine goals with time horizon 2015 successfully and have abandoned none of our goals.

New goals include the development of resource-efficient local energy supply concepts or the implementation of the electric mobility strategy of the City of Vienna.

Sustainability report 2015 – Executive summary

Dr. Martin Krajcsir, director-general of Wiener Stadtwerke

Robert Grüneis, managing director for the non-regulated energy sector, research / technology / innovation / Smart City, IT and sustainability

Wiener Stadtwerke are the municipal services company to safeguard and develop the high quality of life in Vienna. We will by 2018 annually invest over 700 million euros in expanding the infrastructure of Vienna – in the expansion of the metro network, the purchase of new metro trains and trams and ecologically advantageous buses, in the development of renewable energy or in increasing efficiency in energy production.

With our outstanding ranges of public services and mobility, we contribute significantly to an attractive environment to live in for the people of Vienna and the high quality of life in Vienna. Our mission is to render these services in high quality, safe, accessible and affordable for broad sections of the public, in compliance with high quality, environmental and social standards.

These investments will contribute to climate and environmental protection and regional added value. So we provide numerous jobs and at the same time also the livelihoods for future generations. Wiener Stadtwerke are oriented to the common good, to the interests and welfare of all the people of Vienna.

Dr. Martin Krajcsir Director-general of Wiener Stadtwerke

The high quality of life in Vienna is also the result of the competent and committed support of our 16,100 employees. We would like to express our respect and our thanks for their outstanding contribution in the past year. Their commitment and their understanding of sustainability are the basis of our successful sustainable management.

Robert Grüneis Managing director for the non-regulated energy sector, research / technology / innovation / Smart City, IT and sustainability

7

Wiener Stadtwerke

8

TABLE OF CONTENTS /01 KEY PERFORMANCE INDICATORS

2

/02 WELCOME MESSAGE: MAYOR AND GOVERNOR DR. MICHAEL HÄUPL

4

WELCOME MESSAGE: ULLI SIMA, EXECUTIVE CITY COUNCILLOR

5

FOR ENVIRONMENT AND WIENER STADTWERKE /03 WELCOME MESSAGE: DIRECTOR-GENERAL DR. MARTIN KRAJCSIR

6

AND MANAGING DIRECTOR ROBERT GRÜNEIS /04 TABLE OF CONTENTS

8

/05 VIENNA – MODEL CITY FOR ENVIRONMENTAL PROTECTION

9

/06 STAKEHOLDERS’ EXPECTATIONS

10

/07 WIENER STADTWERKE'S IMPACT

12

/08 WIENER STADTWERKE SUBSIDIARIES‘ BUSINESS MODELS

16

/09 WIENER STADTWERKE'S MANAGEMENT APPROACH

18

/10 WIENER STADTWERKE'S SUSTAINABILITY PRINCIPLES

19

/11 WIENER STADTWERKE'S SUSTAINABILITY PROGRAM 2016

20

/12 UN GLOBAL COMPACT COMMUNICATION ON PROGRESS 2015

21

/13 IMPRINT

23

Adoption of the current sustainability program in April 2016

Sustainability report 2015 – Executive summary

/05 VIENNA – MODEL CITY FOR ENVIRONMENTAL PROTECTION

T

he high level of environmental quality is made concrete and tangible for Viennese people as quality of life for all. It is reflected in the many facets of sustainable urban development: • a high-quality drinking water supply • a premium infrastructure for environmentally friendly mobility • a secure management of waste and waste water combined with provision of heat and electricity • a reliable supply of electricity, heat, cooling and gas • a high level of corporate environmental management (high environmental standards) • a forward planning for a viable environment with a high proportion of open and green areas • ambitious measures for reducing greenhouse gas emissions • green procurement • healthy, locally produced food

In Vienna these vital areas are in municipal ownership, to guarantee these essential services for the Viennese people permanently at a high level, accessible for all, at affordable prices.

Wiener Stadtwerke contributes in many ways to that Vienna keeps its reputation as a model city for environmental protection.

Wiener Stadtwerke transport companies provide a comprehensive range of eco-friendly mobility, enabling people in Vienna to abstain from own cars without losses in their quality of life.

1

As a result, significant emissions of greenhouse gases, in particular CO2, and of air pollutants such as particulate matter and nitrogen oxides, too, can be avoided. The public transport is, in addition, much more efficient in the use of resources and leads to a reduction of motorized private transport. Less congestion, less pollution, less noise, more space in squares, streets and roads – all of this means a significantly higher quality of life.

By the operation of waste incineration plants Spittelau, Flötzersteig, Pfaffenau and Simmeringer Haide Wiener Stadtwerke energy companies ensure a secure waste disposal on highest technical level whilst at the same time providing environmentally friendly supply of district heating, district cooling and electricity. So over 2 million people, more than 230,000 commercial and industrial installations and 4,500 farms are supplied with electricity, gas, heat and cold.1 District heating saves valuable resources, reduces CO2 emissions, avoids particulate emissions and is significantly better for the environment than the use of coal, oil or gas. As an additional contribution to further reducing greenhouse gas emissions Wien Energie continuously increases the use of renewable energy sources.

Bestattung und Friedhöfe Wien do not only ensure reverent funerals, but contribute to the improvement of the microclimate in the city through the operation of 46 cemeteries in Vienna. Thanks to its ecologically oriented management of these cemeteries it is also making a significant contribution to the reconciliation of nature conservation and species protection with the needs of people for generous green and recreational areas.

Wien Energie Jahrbuch 2011 (Annual Book 2015). http://www.wienenergie.at/media/files/2016/we_jahrbuch2015_geschuetzt_179859.pdf

9

Wiener Stadtwerke

10

/06 STAKEHOLDERS' EXPECTATIONS

W

 iener Stadtwerke reports for many years transparently and comprehensibly about its sustainability performance. All previously published sustainability reports were created in accordance to the standards of the Global Reporting Initiative (GRI).

With GRI G4, the sustainability reporting is now to focus more strongly on the issues essential for the company from stakeholder perspective (materiality) and on the impact of corporate activities on the entire value chain, including the supply chain. GRI G4 also calls for a connection of the material issues with performance and impact metrics. The preparation for this materiality analysis is presented in detail in the Wiener Stadtwerke Sustainability Report 2015.

Central requirement of the Measuring Shared Value project performed together with the sustainability officers of Wiener Stadtwerke and its companies and the auditing company Ernst & Young was to connect the identified material issues with key performance and impact indicators of Wiener Stadtwerke. In a further step in several workshops and discussions it had been ensured that these topics are included in the current sustainability program. After that

in a series of workshops main stakeholder concerns, the referring key performance (output) and impact indicators (outcomes) were determined.

As a result of these workshops, at Wiener Stadtwerke most stakeholder concerns were already well covered by key performance and/or impact indicators and thus were well suited for the controlling of objectives and measures. The topics diversity strategy, compliance, supplier evaluation and complaint management will be deepened in the coming years. 19 aspects have been identified as being material and then ranked in further workshops in terms of their relative importance to each other. The sustainability officers rated these aspects respectively from the perspective of the employees in their division/company and each from the perspective of a certain external stakeholder. The result of this materiality analysis shows the aspects that are ranked as most important under all major key aspects (5.0 or higher on a scale from 0 to 10).

As a result, you will find some greater differences between the internal and external perspective.

Aspects ranked particularly high from an internal perspective:

Aspects ranked particularly high from an external perspective:

Customer satisfaction and high quality of services offered

Security of supply

Security of supply

Customer satisfaction and high quality of services offered

EBT and efficiency of the means employed

Services offered

Health promotion and accident prevention (employees)

Accessibility Quality of living and Smart City

Jobs and location safeguarding, tax yield

Environmental protection

If you join these two perspectives, the following aspects are identified as having the highest importance from both internal and external perspective:

Customer satisfaction and high quality of services offered Security of supply Services offered EBT and efficiency of the means employed Jobs and location safeguarding, tax yield Quality of living and Smart City

The aspects that are material from our stakeholders’ perspective and the corresponding key performance and impact indicators (see page 14/15) derived during the project "Measuring Shared Value" could be associated with the sustainability program 2016.1 With the exception of the issue supplier evaluation all topics deemed as essential can be found in the objectives and measures of the Group or at least one Group member. Therefore, the structure of the sustainability program has been maintained in

1

the previous five areas of activity in order to ensure transparency and traceability. The Sustainability Report has been structured in accordance with the selection of the most important stakeholders of Wiener Stadtwerke and their (main) concerns. The procedure for establishing the themes or aspects, stakeholder engagement in this process and the selection of the relevant issues is in accordance with GRI G4 Sustainability Reporting Guidelines.

The sustainability program does not contain economic goals. The aspect of earnings before tax (EBT) and efficiency of the means employed are subject

of the company’s Annual Report.

Sustainability report 2015 – Executive summary

11

Key topics in Wiener Stadtwerke's materiality matrix 109-

Versorgungssicherheit

Lebensqualität und Smart City

Compliance (Umwelt) Minimierung Ressourcen Biodiversität

Ausschreibungen

Regionale Wertschöpfung Compliance (Transparenz)

5-

M

O AJ

Arbeitsplätze Standort

Compliance (Korruption) Sozialer Zusammenhalt

6-

PE

M

Ergebnis und Effizienz

Klimaneutralität

7-

S RA

KundInnenzufriedenheit und Qualität

Dienstleistungsangebot Barrierefreiheit

8-

Rahmenbedingungen für Optimales Arbeiten

Gesundheitsförderung und Unfallprävention (Lieferanten)

Gesundheitsförderung und Unfallprävention (MitarbeiterInnen)

O

ST

4-

S CT

321-

10

1

2

3

4

5

6

7

8

9

IM

PO

RT AN

T

AS

PE

10

CT

S

9

RANKING FROM AN EXTERNAL PERSPECTIVE

Security of supply

1

Customer satisfaction and high quality of services offered

Services offered Accessibility

Quality of living and Smart City

8

Compliance (Environment)

EBT and efficiency

Climate neutrality Minimization of resource consumption Biodiversity

7

Jobs and location safeguarding

Compliance (corruption) Social cohesion Tenders

Conditions for optimal working

Regional value creation

6

Compliance (transparency)

SU

Health promotion and accident prevention (suppliers)

Health promotion and accident prevention (employees)

EM

10

5 5

6

7

RANKING FROM AN INTERNAL PERSPECTIVE 1

8

9

Wiener Stadtwerke

12

/07 WIENER STADTWERKE'S IMPACT Wiener Stadtwerke’s successful business model is special as it can only be realized by a company that is 100% owned by public authorities: provision of public services, securing of energy supply and mobility, a high quality of life and high regional added values in the Vienna area.

Capital Financial

Inputs Equity Borrowed capital Subsidies (public transport contract)

Value created

Production plants (electricity, heat, cold, power plants, MSWIs, renewable energy plants, central cooling plants)

Manufactured

Storage facilities (gas, heat) Pipelines and distribution systems (electricity, gas, heat, cold) Public transport (metro, tram, buses, rail track) track systems Vehicles for passenger and freight transport Parking garages Parking spaces in garages Cemeteries

Intellectual

Human Social and relationship Natural

Brand and trademarks Specialist expertise Strong reputation Certified management systems Employees, own Apprentices Employees at suppliers Customers Suppliers Legislator Society Fuels (natural gas, oil, biomass, waste, waste heat) Water, air, soil Biodiversity Ecosystem services

The graphic shows in a compressed manner how Wiener Stadtwerke with its business model creates value for the company itself and added value for its stakeholders and how society ultimately benefits thereof. The graphic is inspired by the framework of the International Integrated Reporting Council (IIRC), with its six "types of capital" (financial, manufactured, intellectual, human, social and relationship, natural).

The work and success of Wiener Stadtwerke is based on its sound economic basis, its infrastructure (buildings, vehicles, etc.), its intangible assets such as reputation, brands, know-how and management systems, its motivated and well trained staff, its good relations with customers, suppliers and business partners and the natural resources that are used as carefully as possible. A short presentation of the main value chains are given in chapter 8, details can be found at the Wiener Stadtwerke Sustainability Report, chapter 10.

Personal mobility in the Vienna region Cargo transport in Central Europe Supply with electricity, gas, heat and cold Grid operation Energy services Funeral services and-products Waste incineration

Wiener Stadtwerke not only provides products and services of the highest quality. But it is also an important employer and trainer of apprentices in the region. And it contributes significantly to the public services (services of general interest), to the high quality of life, to security of supply (with energy and mobility), security of disposal and high environmental quality as well as to creation of regional added value in Greater Vienna. This is proven by using numerous performance and impact indicators in the Wiener Stadstwerke Sustainability Report 2015. These are partly of interest for more than just one stakeholder group. E.g. compliance is a key priority of owner, legislator and society, value creation of e.g. owner and supplier or security of supply e.g. of owner and customers.

Key performance measures are described in detail in the Sustainability Report 2015 and a selection of them is shown in this executive summary. Other performance indicators are included in the Wiener Stadtwerke Annual Report 2015 and the sustainability portal nachhaltigkeit.wienerstadtwerke.at.

Sustainability report 2015 – Executive summary

13

Value shared EBT and efficiency of the means employed Security of supply Compliance, transparency and information exchange

Value added

Security of supply Accessibility Availability Affordability Safety High standards Sustainability Cultural heritage Customer satisfaction and high quality of services offered

Security of supply with mobility Security of energy supply Quality of life Public servic (Services of general interest) Safe disposal Urban hygiene Environmental quality

For the presentation the impact of Wiener Stadtwerke, the impact indicators are mainly of interest. Not for all aspects appropriate key metrics are available. Moreover, it is not just one but usually a whole bundle of causes leading to a special “effect” – e.g. Modal Split: The high share of public transport (PT) of total traffic is a result of a forward-looking urban planning, transport and infrastructure development and an attractive, comprehensive, tightly clocked supply of public transport.

Important for customers satisfaction are criteria such as safety, punctuality, cleanliness, reliability, connection reliability, speed, customer-friendliness and accessibility. Here Wiener Linien achieve usually top values. And regarding the tariffs, Wiener Linien belongs to the most reasonable traffic providers in local public transport in Europe. E.g. since the tariff conversion in 2012 the annual pass costs only 1 Euro per day. Seniors ride even at the price of only 224 Euros per year, or 61 cents per day. In many other European metropolises, passengers have to pay much more for this service.

Compliance and corruption prevention Quality Conditions for optimal working (incl. diversity) and human resources development Health promotion and accident prevention

Capital

Financial

Manufactured

Intellectual

Human

Accessibility Customer satisfaction and high quality of services offered Services offered Regional added value, long-term contractual relations and contractual compliance Requirements and transparency in tenders Health promotion and accident prevention Jobs and location safeguarding, tax yield Compliance and orruption prevention Social cohesion (inclusion) Quality of life and Smart City Climate neutrality Minimization of resource consumption Environmental Protection and Compliance Biodiversity

Social and relationship

Natural

As an employer and investor, Wiener Stadtwerke is an important economic factor for the region of Vienna. So it has invested in recent years several hundred million euros per year, particularly in property and equipment in the field of transport and energy. A wide range of industries benefit from these contracts.

A study of the Austrian Institute of Economic Research (WIFO) commissioned by Wiener Stadtwerke shows that the company creates a workload for 62,000 working places. This means behind each of the approximately 16,100 employees, there are three additional jobs at external companies throughout Austria.

Wiener Stadtwerke

14

KEY PERFORMANCE AND IMPACT INDICATORS (ROUNDED) OF WIENER STADTWERKE 2015

Stakeholder and their interests EBT and efficiency of the means employed

Key performance indicators 2015 • Added value: 1,151 EUR m [G4-EC1] • Distribution: 93 % for Wiener Stadtwerke employees [G4-EC1] 689 EUR m invested in infrastructure [G4-EC7]

Impact indicators 1 + 3 = 4: Every Wiener Stadtwerke job saves three additional jobs in other companies. [G4-EC8] 39 % share of public transport (PT) on modal split (for the 4th time in a row) [G4-EC7]

Efficiency of long-distance transmission and distribution lines [EUSS1 -EU12]:

OWNER

• Grid losses electricity: 4.74 % Security of supply

• Grid losses gas: 0.29 % • Grid losses district heating: 9.05 % Network availability: far abover 99.9 % [EUSS-EU29]: • 32 min./a average power outage duration • 2 min./a average unplanned downtime in the gas grid per customer

Customers in Greater Vienna supplied with energy [G4-8]: • more than 2 million people • more than 1,000,000 households • 230,000 commercial customers • 4,500 agricultural facilities

• 99.98 % availability of district heating supply Compliance, transparency and information exchange

Accessibility

CUSTOMERS

Customer satisfaction and high quality of services offered

Share of employees working in subsidiary companies having certified management systems [DMA, G4-34, G4-56]: • Management systems for quality and environment: above 80 % • Management systems for occupational safety and health: above 60 % • 1,670 of 2,178 vehicles for passenger transport are low-floor •

76.7 % of the vehicles are barrier-free

• Customer satisfaction: Systematization and standardization of data collection for complaints management is on the agenda for 2016.

[G4-PR8, G4-HR12, G4-LAQ16, G4-SO11, G4-EN34]

• Wiener Linien [G5-PR5]: o more than 98 % satisfied customers o 698,968 annual tickets sold

• Quality: see security of supply

• Wien Energie [G5-PR5]: 83 % satisfied customers

• Energy production: o 5,011 GWh electricity o 4,982 GWh heat o 128 GWh cold

• Development degree after implementation of expansion measures (Opening U1-South) 2018: o 99.8 % of all school places o 96.4 % of all inhabitants o 95.4 % of all workplaces o 89.0 % of the living area o 87.4 % of the built-up area o 59.6 % of the total area of Vienna

• 954.2 million passengers transported o Wiener Linien: 939.1 million passengers o Wiener Lokalbahnen: 15.1 million passengers Services offered

• Funeral services: o 9,264 burials and cremations o 13,419 coffin and urn burials • 20,064 parking spaces

• Availability: o 500 m catchment area underground and suburban train, o 300 m catchment area tram, Wiener Lokalbahnen, busses and regional busses • Share of public transport (PT) on modal split: 39 % (for the 4th time in a row)

• 16,097 employees [G4-10] • 4.5 % employee turnover [G4-LA1] • 17.2 % proportion of women [G4-LA12]

EMPLOYEES

• 24.7 % proportion of women in admissions [G4-LA1] Conditions for optimal working (incl. diversity) and human resource development

• 23.6 % proportion of women in 1st and 2nd management level [G4LA12] • 50 % women on the Supervisory Board (only shareholder representatives) [G4-LA12] • 390 apprentices [G4-10] • 2.5 % disabled employees falling under the Austrian Disability Employment Act [G4-LA12] • 56,215 training days in total [G4-LA9] • 3.5 training days per employee [G4-LA9]

Health promotion and accident prevention

• 316 notifiable occupational accidents [G4-LA6] • Zero fatal accidents [G4-LA6] • 19.4 notifiable occupational accidents per 1,000 employees [G4LA6] • 23.8 sick days per notifiable accident [G4-LA6]

• 16.9 years average length of employment (2014) • About 80 % of the apprentices remain in the company • 1 + 3 = 4: Every Wiener Stadtwerke job saves three additional jobs in other companies. [G4-EC8]

SUPPLIERS

Sustainability report 2015 – Executive summary

Stakeholder and their interests

Key performance indicators 2015

Impact indicators

Regional added value, longterm contractual relations and contractual compliance

689 million Euro investments in tangible assets [G4-EC9]

1 + 3 = 4: Every Wiener Stadtwerke job saves three additional jobs in other companies. [G4-EC8]

Requirements and transparency in tenders Health promotion and accident prevention

Minimization of resource consumption

• 316 notifiable occupational accidents [G4-LA6] Supplier evaluation according to the criteria environmental management, workplace conditions, corruption and human rights violations [G4-DMA, G4-EN32, G4-SO9, G4-HR10, G4-LA14] under construction

• 13,858 GWh fuels used [G4-EN3] o of them about 85 % fossil [G4-EN3] • 0 % nuclear-generated electricity obtained [G4-EN3] • Proportion of renewable energy in electricity generation [G4-EN3]: o 19.9 % (consolidated Group) o 20.4 % (inkluding investments) • Proportion of renewable energy in heat generation [G4-EN3]: o 18.0 % (consolidated Group) o 22.4 % (inkluding investments)

ENVIRONMENT

15

Climate neutrality

• Direct CO2-emissions (SCOPE 1) [G5-EN15]: nearly 3 billion t, of them o Power and heat generation: about 2,8 Mrd. t o Fleet: about 43.000 t o buildings and other facilities: about 9.000 t o Grid losses (gas and electricity): about 160.000 t o GHG-savings from the production of renewable electricity: about 55.000 t

Environmental protection and compliance

• 0.6 % savings in energy sales, including 40% for household customers (EEffG) [G4-EN7]

• Zero fatal accidents [G4-LA6] • 19.4 notifiable occupational accidents per 1,000 employees [G4-LA6] • 23.8 sick days per notifiable accident [G4-LA6] • 312 MWel capacity installed for electricity from renewable energy sources, including o 22 citizens' solar power plants o 2 citizens' wind power plants • 186 MWth capacity installed for heat from renewable energy sources • Smart City target: >20 % (2030) or > 50% (2050) of Vienna’s gross final consumption of energy come from renewable sources.

• Reduce final energy consumption per inhabitant by 40 % by 2050 Climate objectives of the City of Vienna (KliP II): reduction of greenhouse gas emissions per capita in Vienna to 35 % by 2030 in any case and 80 % by 2050 (compared to 1990) (Smart City target)

• 547 t NOX from the operation of power plants, 48 t NOX from the operation of the fleet [G4-EN21] • 68 t SO2 rom the operation of power plants [G4-EN21] • nearly 80 kg particulate matter (PM10) from the operation of the fleet [G4-EN21]

LEGISLATOR / STATE

Biodiversity Jobs and location safeguarding, taxes paid

• Added value: 1,151 EUR m [G4-EC1]

Compliance and corruption prevention

• Business locations that have been monitored with regard to the risks of corruption, and identified significant risks [G4-SO3]: Systematic recording under construction

• Distribution: 93 % for Wiener Stadtwerke employees [G4-EC1]

Smart City target: Keep the share of green space in Vienna until 2030 at about 50 % 1 + 3 = 4: Every Wiener Stadtwerke job saves three additional jobs in other companies. [G4EC8]

• About 3,000 employees trained to anticorruption topics [G4-SO4] • No – in relation to sales – significant fines for noncompliance with environmental laws and regulations, or due to violations of other laws [G4-SO8] Social cohesion (inclusion)

SOCIETY

46 cemeteries with approximately 5.2 km2 green space [G4-EN11]

Quality of life and Smart City

Since April 2011, the Wien Energie Ombudsstelle has processed appr.

15,000 requests from social services and customers. Among others, since then 11,000 households have been supervised (assisted or supported customers / households) and about 300 prepayment meters have been installed and maintained continuously on a voluntary basis.

• Several historical buildings (stations, bridges) • 2 museums • 46 cemeteries with approximately 5.2 km2 green space [G4-EN11]

97 % of respondents like or like even very much to live in Vienna (Department of Sociology, University of Vienna, 2013). Vienna is the city with the highest quality of life (No. 1 in the ranking in Mercer study).

16

Wiener Stadtwerke

/08 WIENER STADTWERKE SUBSIDIARIES‘ BUSINESS MODELS The chart on page 12/13 provides an overview of the value chain of Wiener Stadtwerke according to its six major types of capital. In this chapter, the underlying business models of Wiener Stadtwerke companies are briefly presented. More details can be found in the Sustainability Report, 2015. The business models were developed in collaboration with the sustainability officers of Wiener Stadtwerke and of the Group subsidiaries – as well as the deduction of the respective risks from stakeholder perspective.

The energy segment is divided into two separate models, because as for the regulated sector of power distribution (Wiener Netze) there are other conditions as for the deregulated area of energy production and energy services (Wien Energie, Wien Energie Vertrieb). The latter is entirely subject to competition. The segments transport (Wiener Linien, Wiener Lokalbahnen) and garaging (WIPARK) are jointly represented as the business model personal mobility. The reason is that management of the parking garages also supports the aim of the City of Vienna to push back motorised private transport in favour of public transport. New car parks are therefore built especially where a switch to public transport should be facilitated. The fourth business model is B&F Bestattung und Friedhöfe Wien.

Risks existing for all business models These include in particular the topics selection of suppliers, compliance and corruption, workplace conditions / occupational safety for own employees and of contracted companies in the field of civil engineering, technical services (repair, maintenance, service) and in the upstream supply chain. Workforce's age structure provides a risk aspect for several Group subsidiaries. Further, more general aspects are conservation requirements under economic and occupational safety and health conditions as well as cybercrime and data protection. In order to detect and eliminate these risks early, Wiener Stadtwerke count on proven management systems such as on the existing risk management or certified quality, safety and environmental protection systems, see "Wiener Stadtwerke's management approach" starting on page 18. There are also risks due to the supply chain when purchasing products. These risks can be reduced by selecting appropriate positive criteria such as Ökokauf Vienna.

Wien Energie business model 2015 Wien Energie business model is the production of electricity and heat, the operation of the heat grid and the sale of products electricity, gas (natural gas, biogas), heat (long-distance and district) and cooling (cooling center at the customer or cooling via cooling network) and services, in particular waste management and energy services. Wien Energie supplies more than two million people and about 230,000 commercial customers and 4,500 agricultural facilities in Vienna and nearby with gas and electricity and 375,000 households – about one third of all households in Vienna – and more than 6,800 key account customers with space heating and hot water. In addition, Wien Energie operates the largest solely fiber-based network at Vienna.

Besides the already mentioned risk aspects applying to some or all four business models (such as supplier selection, compliance and corruption, conservation requirements under economic and occupational safety and health conditions, cybercrime and data protection), the unscheduled downtime of its plants is an important risk aspect for Wien Energie. To minimize this, the plants are regularly checked, serviced and maintained. So unscheduled shutdowns in recent years had been steadily reduced. The availability of certified facilities (excluding scheduled downtime) increased from 82.9% in 2010 to 91.8% in, 2015.

In order to reduce its dependence on fossil fuels, Wien Energie has gradually expanded in recent years the production capacity based on renewable energy and also has set new targets for increasing the provision of electricity and heat from renewables by 2030, see the sustainability program 2016 ( nachhaltigkeit.wienerstadtwerke.at ).

From stakeholder perspective, a possible nuclear power's share is also an important risk issue for Wien Energie (and Wien Energie Vertrieb). So Wien Energie Vertrieb buys current on the market, which could theoretically include nuclear power – approximately 30% of the so-called ENTSO E-mix is coming from nuclear plants after all. Therefore Wien Energie Vertrieb ensures the absence of nuclear power for the entire electricity purchased.

Sustainability report 2015 – Executive summary

Wiener Netze business model 2015 Wiener Netze business model consists of the construction and maintenance of the grids for electricity, gas, district heating and telecommunications in Vienna: more than 23,500 km of electricity grid in Vienna, parts of Lower Austria and Burgenland, almost 4,700 km of gas grid in operator responsibility in Vienna and parts of Lower Austria, and operation of 560 km of district heating primary grid in Vienna. In addition, Wiener Netze own 178,886 fiber kilometers, corresponding to 2,216 cable kilometers, which is the largest solely fibre-based network in Vienna, operated by Wien Energie.

The essential services of the Wiener Netze are the installation and maintenance of electricity and natural gas connections, the maintenance of the district heating primary network in Vienna, maintenance, surveying, technical inspection and other services, the provision of security and services (gas emergency, power outage service) and the installation, maintenance and reading of electricity and gas meters. The rollout of the new electricity meter – smart meters – is implemented step by step in accordance with regulatory requirements.

In addition to the risk aspects concerning all Group subsidiaries, especially workplace conditions and the EIA (environmental impact assessment) suitability for services provided by third party construction (civil engineering) have been identified as further risks for Wiener Netze. Here, Wiener Netze rely on their certified management systems. Wiener Netze are certified e.g. following ISO 9001 (Quality management), ISO 14001 (Environmental management), ISO 1090 (Technical requirements for the execution of steel structures), EN ISO 3834 (Quality requirements for fusion welding of metallic materials), ÖVGW QS GNB 200 (Quality requirements placed on gas grid operators) and ONR 192050 (Compliance Management Systems certified in the department of network technology gas and district heating). All certificates are available for download on the Wiener Netze website: http://www.wienernetze.at/eportal/ep/channelView.do/pageTypeId/40374/channelId/-43304 Wiener Linien, Wiener Lokalbahnen and WIPARK business model 2015 The business model “personal mobility” summarizes Wiener Linien, Wiener Lokalbahnen and WIPARK. The business model includes the provision and operation of a comprehensive public network for personal mobility in Vienna by Wiener Linien and mobility services in Greater Vienna by Wiener Lokalbahnen. Wiener Linien operate on a total route network of 1,083 km, five subway lines, 29 tram and 127 bus lines, 104 subway stations and 5,203 stations (incl. commission-based transport and Nightline). With its 2,030 vehicles for passenger transport they have produced 19,766 million square kilometers. Wiener Lokalbahnen offer rail passenger transport between Vienna and southern Viennese surrounding area and bus services in the Viennese region (VOR). With its 148 passenger vehicles (incl. transport of disabled people (WLT)) Wiener Lokalbahnen have thereby produced 526 million square kilometers.

WIPARK contributed 20,064 parking spaces in 67 garages to relieve the public space from motorised individual traffic. The share of public transport in the modal split could be held for the fourth year in a row at 39%.

Wiener Linien/Wiener Lokalbahnen vehicles are regularly checked and maintained to minimize the risk of high downtime. The availability and the price development of electrical energy is also an important aspect of risk, since it is necessary for the traction of rail vehicles, the propulsion of the electric buses and the operation of stations and management as well as construction. Also, the requirements from laws and regulations (for example, energy efficiency law) have to be taken into account regarding the limitation in availability. In the area of external services strategic partnerships may pose a risk aspect.

Bestattung und Friedhöfe Wien business model 2015 The business model of Bestattung und Friedhöfe includes Friedhöfe Wien, Bestattung Wien, Krematorium Wien, Sarglogistik Wien, Tierfriedhof Wien and Druckerei Lischkar.

Bestattung und Friedhöfe Wien’s business model is the provision of services and products for bereavements in Greater Vienna. The services include in particular burials (earth, urns and crypt burial), the organisation and execution of funeral services ("one-stop shop"), cremations, rental and maintenance of grave sites, maintenance of cemeteries, stone carvings and animal burials.

As products, they offer metal coffins of our their own production, grave stones, grave plates, grave monuments, grave borders, flowers and funeral printing products.

Important risk aspects from the perspective of stakeholders – in addition to those already mentioned – are the origin and quality of the resource (the problem of use of incorrect raw materials for paints, metals, etc.) and materials. Therefore stones are primarily ordered from local sources and with good working conditions.

Stones without a certificate, for example, from India or China, are not used.

The priority for regional products also applies to garden supply and floristry. To reduce the dependence on energy suppliers (electricity, natural gas), waste heat is used in the own energy supply and self-generation by photovoltaic is expanded. The certification of the printing company Druckerei Lischkar in 2008 confirmed that their products comply with the guidelines of the Austrian eco-label for low-emission printing products.

17

Wiener Stadtwerke

18

/09 WIENER STADTWERKE'S MANAGEMENT APPROACH Strategy

Using the "triple bottom line" as a basis, Wiener Stadtwerke have pursued their economic, environmental, social and societal goals for a long time. 2006, Wiener Stadtwerke adopted their sustainability principles. 2008, Wiener Stadtwerke joined the UN Global Compact and committed themselves, inter alia, to the precautionary principle.

With the first Consolidated Sustainability Report published in 2008, the sustainability program was implemented as a planning and control instrument. The sustainability principles can be found on the following page, the sustainability program is available at nachhaltigkeit.wienerstadtwerke.at.

2010, sustainability has been integrated into the company's strategy – since then corporate strategy and sustainability strategy are closely interlinked. Thus, the corporate strategy is based not only on earnings-related criteria, but social responsibility and profitability form equivalent overall objectives to which the Group aligns its actions. The Wiener Stadtwerke Board is responsible for the development of the strategy. The Board – together with the managing directors of group subsidiaries – fixes the objectives of the Group and the operational implementation.

The objectives and measures of the Group or at least one Group subsidiary contained in the sustainability program 2016 also correspond (with one exception) to all topics deemed as essential within the materiality analysis conducted in 2015.

www.unglobalcompact.org/participant/10111-Wiener-Stadtwerke-Holding-AG

Corporate Governance

Wiener Stadtwerke bear a great financial responsibility. To meet these demands, they apply modern principles of good and responsible corporate management. To ensure proper and efficient business practices Wiener Stadtwerke Group uses effective tools of corporate governance and control. The structures and mechanisms set up there are used to establish transparency for the owner, the supervisory authorities and the public and to ensure appropriate risk management, and focusing on a long-term success.

The Wiener Stadtwerke Group is owned by the City of Vienna, the owner's representative is the Executive City Councillor for Environment and Wiener Stadtwerke, Ulli Sima. Wiener Stadtwerke Holding AG is a holding company without any further operations on the market. It continues the activities of Wiener Stadtwerke (previously a company of Vienna, part of the magistrate) since 01.01.1999 in form of operating company subsidiaries. The management of the operating business is up to the respective directors of the Group companies. At least one of the four Board members is member of the Supervisory Board of each of the Group companies.

The Supervisory Board of Wiener Stadtwerke AG is elected according to § 87 para. 1 Austrian Stock Corporation Act by the annual general meeting of shareholders. It consists of eight shareholder representatives (four men and women each) and four employee representatives, who are posted in accordance with § 110 Austrian Federal Act on the Labour Constitution and freedom of association.

Wiener Stadtwerke Group has implemented a comprehensive risk management system that enables the early identification of opportunities and risks. The risk management system of the entire Group is fully functional according to opinion of the auditing and tax consulting firm BDO Austria GmbH, 2013, and the implementation of processes, activities and controls corresponds to an adequate risk management system. Detailed information on the risk management system and the internal control system (ICS) can be found in the Management Report, 2015.

Wiener Stadtwerke Group’s Compliance Management System (CMS) is based at the director-general. The consolidated Directive KRL 147/2013 regulates the compliance management system.

Related to compliance the corporate guideline (KRL) 127/2012: “Code of Conduct”– The principles of conduct of the Wiener Stadtwerke Group is to name. In addition, a compliance officer of the Board and compliance commissioners in all major Group subsidiaries were appointed and a whistleblower portal was established. 2015 3,000 employees were also trained on anti-corruption issues. Moreover, Wiener Stadtwerke counts on certified quality, safety and environmental management systems.

Further information about the Compliance Management System (CMS) and the corporate audit, the Vienna City Court of Auditors (formerly Vienna Control Board), the personnel, complaints, and supplier management can be found in the Sustainability Report 2015 and at the sustainability portal nachhaltigkeit. wienerstadtwerke.at, as well as informations on stakeholder and sustainability management and memberships.

Sustainability report 2015 – Executive summary

/10 WIENER STADTWERKE'S SUSTAINABLILITY PRINCIPLES

A

s a result of an intensive discussion process Wiener Stadtwerke have adopted five equivalent sustainability principles in 2006.

They describe our fundamental objectives in relation to our employees, our customers, climate and environmental protection, the economy and society as a whole.

Our principles correspond to programs and objectives of the City of Vienna for sustainable development.

Our sustainability principles are:

WE ARE A SERVICE PROVIDER IN THE AREA OF SERVICES OF GENERAL INTEREST WITH FOCUS ON THE REGION OF VIENNA. • We supply the Vienna region comprehensively with essential services for daily life.

• Our services are equally accessible for all people and are reliable, secure and available in high quality.

• Our offers are continuously optimized according to the requirements of our customers in the region.

• We take into account the special needs of certain groups such as families, disadvantaged persons or people with disabilities.

WE ARE A ECONOMICALLY SUCCESSFUL COMPANY. • We are committed to profitability and sustainable business success against the owner, the City of Vienna.

• Customer satisfaction is one of our main goals, because only satisfied customers can ensure our economic success.

• We focus on quality and performance in order to compete.

• As a public company we calculate fair and reasonable.

• Research and development of new products are a prerequisite for our competitiveness in the future.

WE ARE AN ECOLOGICALLY MINDED COMPANY. • Our installations are efficient and meet the latest state of the art.

• Climate protection is an important and serious concern to us; we are just as careful as possible when using natural resources.

• We are committed to continuous improvement of our environmental performance.

• Our products and services are environmentally friendly and enable our customers a sustainable behavior.

WE ARE A SOCIALLY ORIENTED COMPANY. • Jointly developed management principles are the guiding principles for a consistent behavior of our managers.

• Our goal is to avoid danger to life and health of our employees.

• We therefore strengthen employee protection and corporate health care as a basis for safe and healthy working conditions.

• We offer our employees an incentive plan, and attractive jobs.

• We promote the personal potential and commitment of our employees and therefore invest in the training of our employees.

• As one of the leading training companies in the region of Vienna, we have an important task to give young people a chance to training and an optimal entry into profession.

• We take employee participation of all employees seriously.

WE ARE A COMPANY AWARE OF ITS RESPONSIBILITIES TO SOCIETY. • As one of the largest investors in Austria we contribute to added value in the region of Vienna.

• Observance of human rights and respecting human dignity are a matter of course in our company, this must also apply to our business partners.

• Equal rights for all people in the company, regardless of gender, age, political or religious affiliation, ethnicity or color, is our top priority.

• We oppose any form of corruption and rely on operational transparency.

• We seek dialogue with all target groups to promote sustainable development of the Vienna Region by our services.

19

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Wiener Stadtwerke

/11 WIENER STADTWERKE'S SUSTAINABILITY PROGRAM 2016 With the first Group Sustainability Report published in 2008 our sustainability program has been implemented as a planning and control tool. The sustainability program is resolved each year by the entire management of Wiener Stadtwerke, the Sustainability Board. This top sustainability committee consists of all Board members, all managing directors and elected staff representatives and the sustainability officers.

The aspects identified as material from stakeholder perspectives and the corresponding output and outcome indicators (see page 10 / 11) collected during the project “Measuring Shared Value” could be assigned to the sustainability program 2016. With the exception of the aspect supplier evaluation all material topics correspond to the objectives and measures of the Group or at least one Group member. Therefore, the separation of the sustainability

program into five areas of action has been maintained in order to ensure transparency and comprehensibility: • Climate and environment • Public services and customers • Employees • Societal environment • Organisation.

In Sustainability Program 2016 nine goals with a deadline of 2015 were achieved and all other goals were maintained. Thus, the targets, especially the development of renewable energy and a 40% share of public transport in the modal split will be continued and are backed by new measures.

Highlights of our sustainability program 2016 Climate and environment

Wien Energie aims to increase the share of electricity from renewable sources by 2030 to 35%. To this end, generation shall be diversified and the capacity should be expanded from 312 MWel (2015) to at least 1,100 MWel. No less than 200 MWel are to be realized by 2020 with the construction of wind farms in Austria and additional 100 MWel by 2022 by means of photovoltaic systems. End of 2015, the production capacity for district heat from renewable energy sources amounted to 186 MWth. Their share is to be expanded by 2030 even at 39% and the generation capacity (incl. waste heat) to at least 415 MW. So a large heat pump with a useful heat output of 27 MW is to be built for the Vienna district heating system by 2017 at the power plant site Simmering.

Until 2030, 50% of the annual low temperature heat market is to be covered by district heating (40%) and decentralized solutions (10%). Wien Energie aims to reach a market share of 43% of the Viennese low temperature market by 2030.

Wiener Netze plan until 2018 to introduce a mobility concept, whereby there will be a significant fleet reduction and thus positive environmental effects.

To increase the energy efficiency of rail vehicles Wiener Linien plan to equip the entire metro and tram fleet with recuperation by 2017. Recuperation means that during braking, the kinetic energy is converted back into electrical energy and fed back into the grid.

And in the upcoming fourth phase of expansion of the subway network, the construction of the new metro stations will be made in energy-optimized design while maximizing utilization of existing waste heat.

Wiener Lokalbahnen intend to implement resource-saving measures, like roof greening, rainwater harvesting and use of solar thermal energy, at the new construction of the depot for the Badner Bahn and the premise (WLB-center) at Inzersdorf until 2018.

Friedhöfe Wien will expand their successful bee conservation project at Vienna's Central Cemetery by 2017 to more cemeteries.

Public services and customers

The overall objective of Wiener Linien is to increase the public transport share in the modal split to 40% by 2020. Since 2012 the proportion is, despite a continuous increase in the number of passengers, remaining unchanged at 39%. To make trips on public transport more attractive, Wiener Linien focuses on modern and comfortable vehicles (for example, the “low-floor tram offensive”) and more offers and measures to increase client satisfaction (e.g. introduction of a service team, establishment of electronic survey tools).

Wiener Lokalbahnen plan to equip their entire stations by 2020 with barrier-free access.

Wien Energie is to extend its consulting and service offer by the construction of an energy theme park (Energie-Erlebniswelt) at the Spittelau location by 2017 and to expand the services of its Ombudsman for social hardship cases, to reduce social hardship in the context of energy poverty.

Wiener Netze will start in 2017 with the rollout of smart metering for electricity and gas.

To increase customer satisfaction Bestattung Wien will open in 2016 two new branch offices.

Employees

Primary objective is to promote the health of our employees and to reduce the rate of notifiable accidents at work. For this e.g. Bestattung und Friedhöfe Wien will perform the pilot project health management until 2017.

In order to create conditions that allow optimal working, a Group-wide employee survey is to be performed in 2017.

To strengthen diversity and equal opportunities a network within the Group is to be set up to share knowledge and experience of and for people with disabilities by 2017. And at Wiener Linien about 25 “respect coaches” will be on duty by mid-2016. They will support the managers to have and show an appreciative attitude during employee interviews.

Sustainability report 2015 – Executive summary

/12 UN GLOBAL COMPACT COMMUNICATION ON PROGRESS 2015

W

iener Stadtwerke are member of United Nations Global Compact since 2008 and are committed to its ten principles.

With those principles, concerning their business, they incorporate such requirements into their business processes and set goals in its sustainability program, underpinned with measures and deadlines.

The UN Global Compact asks its members to deliver every year a communication on progress. Our communication on progress for 2015 is an integral part of our sustainability report 2015. The following table lists the related guidelines like e.g. organisational systems and identifies the progress made. The page numbers refer to the corresponding illustrations in the long version of the Sustainability Report 2015 ( nachhaltigkeit.wienerstadtwerke.at ), only German version available).

Additional information can be found at our sustainability portal nachhaltigkeit.wienerstadtwerke.at.

No developments are given for the principles 1 to 5 for the year 2015. The background is that for Wiener Stadtwerke as well as generally in Austria the respect for and observance of human rights is a matter of course. So neither in the Wiener Stadtwerke Group nor in its environment there is forced or child labor. Therefore, these issues were not explicitly addressed in the sustainability guidelines or in the sustainability program.

For further explanations, see our Commitment to the protection of human rights and against forced and child labor, which also is available for download at the Sustainability Portal (in German).

Page references are to the sustainability report, not to this summary.

PRINCIPLE 1 / Protection of internationally proclaimed human rights PRINCIPLE 2 / Exclusion of human rights violations Commitment

• Commitment to the protection of human rights and against forced and child labor. p. 21 and see sustainability portal: nachhaltigkeit.wienerstadtwerke.at/download-bereich.html

PRINCIPLE 3 / Respecting the right of assembly and freedom of association Commitment

• Sustainability principles: see p. 21 and sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/organisation/leitsaetze.html

Systems

• Employee representation: see p. 19 and sustainability portal: nachhaltigkeit.wienerstadtwerke.at/organisation/stakeholder.html

PRINCIPLE 4 / Elimination of all forms of forced labor PRINCIPLE 5 / Abolition of child labor Commitment

• Commitment to the protection of human rights and against forced and child labor. Download from sustainability portal: nachhaltigkeit.wienerstadtwerke.at/download-bereich.html

PRINCIPLE 6 / Eliminating discrimination Commitment

• Sustainability principles: see p. 21 and sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/organisation/leitsaetze.html

• Anti-discrimination manual: see sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/mitarbeiterinnen/vielfalt/personelle-vielfalt.html • Equal opportunities officer and equal opportunities program: see sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/ mitarbeiterinnen/vielfalt/personelle-vielfalt.html

Measures 2015

• Annual participation in the Vienna Daughter Day (Wiener Töchtertag): see p. 70 • Workshop for sensitization for equality and advancement of women: see p. 70 • Wiener Linien: Formation (2013) and extension of Women's Network (Wiener Frauen Linien): see p. 70 • New collective agreement with new time models for a better balance between family and profession: see p. 72 • Introduction of a "baby month" and a "care leave" (Pflegekarenz): see p. 72

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Results 2015

• Increasing women's share in the 1st and 2nd management level from 21.4% in 2014 to 23.6% in 2015: see p. 15, 69

• Increasing women's share in total (from 17.0 to 17.2 %) and in admissions (from 22.6 to 24.7 %): see p. 69 • Wiener Netze: Award amaZone 2015 from the initiative “Sprungbrett” (“stepping stone”) in the category Public companies and companies with high public awareness for their involvement in the promotion of female apprentices: see p. 70, 99 • Winning female apprentices for technical jobs: see p. 21 and sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/mitarbeiterinnen/aus-weiterbildung/lehrlingsausbildung.html • Additional means of apprenticeships for recognised refugees: see p. 67, 71 • Cooperation with an integration project for disabled (AfB): see p. 96

PRINCIPLE 7 / Supporting the precautionary approach to environmental challenges PRINCIPLE 8 / Initiatives to promote greater environmental responsibility Commitment

• Sustainability principles: see p. 21 and sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/organisation/leitsaetze.html

Systems

• Environmental and integrated management systems: see p. 50/51 • Sustainability management with under others working groups on climate protection, green procurement, customer satisfaction, management systems and sustainability communication: see sustainability portal nachhaltigkeit.wienerstadtwerke.at/organisation/management.html

Measures 2015

• Finalization of energy optimization of the municipal solid waste incineration plant Spittelau: see p. 84 • Expansion of the business area district cooling: see p. 84 • Increasing the energy efficiency of rail vehicles (Wiener Linien): see p. 85

Results 2015

• MSWI Spittelau: Increasing the efficiency of 70 to 76% and tripling of current production – with no change in waste throughput and heat extraction: see p. 84 • Construction of district cooling centers in Vienna Central Station and in the geriatric center Donaustadt: see p. 84 • Acquisition of further 150 trams with energy recovery, type ULF (ultra low floor): see p. 85 • Keeping the public transport's share of the modal split to 39 %, see p. 61. 2015 about 954 (2014: 946) million passengers used the mobility services offered by Wiener Linien and Wiener Lokalbahnen: see p. 56 • Reduction of sulfur dioxide emissions from heating plants by stopping the use of heavy fuel oil: see p. 83, 91 • Reduction in nitrogen oxide emissions of the bus fleet of Wiener Linien by successive replacement of buses fueled with Liquefied Petroleum Gas (LPG) by electric buses and hybrid regular buses: see p. 88, 91 • CO2-emissions: see p. 87 ff.

• Emissions of air pollutants: see p. 90, 91

PRINCIPLE 9 / Development and diffusion of environmentally friendly technologies Commitment

• Sustainability principles: see p. 21 and sustainability portal: nachhaltigkeit.wienerstadtwerke.at/de/organisation/leitsaetze.html

Systems

• Internal RTI (research, technological development, innovation) fund: see sustainability portal: nachhaltigkeit.wienerstadtwerke.at/daseinsvorsorge/innovationen.html • Energy-saving advice: see sustainability portal: nachhaltigkeit.wienerstadtwerke.at/oekologie/produkte-dienste/energiesparen.html

Measures 2015

• Expanding the production of electricity and heat from renewable energy sources: see p. 82 • Construction of a total of 22 citizens’ solar power plants in Vienna and Lower Austria in the period 2012-2015: see p. 34, 46 • Realization of district cooling projects: see p. 55, 84 • Promotion of electric mobility in Vienna: see p. 86 • Development of mobility app „smile“: see p. 102

Sustainability report 2015 – Executive summary

Results 2015

• Increase in produced electricity from renewable sources froms's 816 GWhel in 2014 to 950 GWhel in 2015: see p. 82

• Production of around 5.85 kWh solar power with the citizens’ solar power plants: see p. 83

• Implementation of three new power supply models for decentralized use of renewable energy: see p. 104 • Further reduction in the annual consumption of traction current by 1% (4 kWh) compared to last year with an increase in square kilometers of rail vehicles by 0.5%: see p. 83 • Increasing the annual tickets for the public transport (Wiener Linien) of 648,227 to 698,968: see p. 57 • Wien Energie: Honoring as National Champion Austria for Environmental & Corporate Sustainability 2014/15 as part of the European Business Award for its activities in the fields of renewable energy, energy consulting, energy poverty and stakeholder dialogue: see p. 99 • Wiener Linien: UITP Award 2015 in the category Customer Experience for the mobility app „smile“: see p. 99

PRINCIPLE 10 / Work against corruption Systeme

• Compliance Managements System (CMS): see p. 18 • Compliance commissioners in the subsidiary companies: see p. 18 • Code of Conduct: see p. 18, 19, 66 and homepage of Wiener Stadtwerke wienerstadtwerke.at : > Unternehmen > Organisation> Code of Conduct.

Measures 2015

• Training of more than 3,000 employees to anticorruption topics: see p. 18, 50

/13 IMPRINT PUBLISHER AND RESPONSIBLE FOR CONTENT

COMMUNICATION CONSULTING & DESIGN

Wiener Stadtwerke Holding AG Thomas-Klestil-Platz 14 A-1030 Wien Telefon: +43 (0)1 531 23-0 post@wienerstadtwerke.at wienerstadtwerke.at nachhaltigkeit.wienerstadtwerke.at

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PROJECT MANAGEMENT

ILLUSTRATIONS CIDCOM Werbeagentur GmbH, Wien

PRINTING AND FINISHING

Dipl.-Ing.in Isabella Kossina, MBA, Wiener Stadtwerke Group Sustainability Officer

Druckerei Lischkar, Wien Printed on ecofriendly paper from the sample folder of “ÖkoKauf Wien”.

CONCEPT AND CONSULTING

CONTACT

Dr.in Barbara Zeschmar-Lahl, BZL Kommunikation and Projektsteuerung GmbH, Oyten (D)

Contact person for questions about the report is the Group Sustainability Officer: Dipl.-Ing.in Isabella Kossina, MBA Mail: Isabella.Kossina@wienerstadtwerke.at Tel.: +43 (0) 1 531 23-74090

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