Welcome: Executive Statement

Welcome to ScottishPower’s Corporate Social Responsibility Annual Review for 2010.  This year, we have achieved an A+ application level rating against the Global Reporting Initiative Reporting Guidelines (third version), endorsed by independent assurance company Two Tomorrows. 

Despite continuing challenges in our sector’s operating environment and the economy generally, ScottishPower made good progress in furthering the aims of environmental and social sustainability during the year.

Climate change and reducing CO₂ emissions will, for the foreseeable future, continue to be the predominant sustainability issue affecting our business and our sector, internationally and in the UK. Funding and delivering the transition to a low carbon economy cannot be borne by energy companies alone – it will require contributions from Government and customers, with safeguards in place to ensure that achieving environmental sustainability does not result in the social exclusion of vulnerable customers.

During 2010 the UK Government began taking steps to stimulate investment in low carbon technologies through its Electricity Market Reform and proposals for a Green Investment Bank, and detailed how its new Green Deal will help customers to use energy more efficiently.

These new policy developments will help to support our strategic aim, which in the short to medium term, is to lead technological change by investing in mature technologies and promoting innovation. In the longer term, our strategic focus is to deliver low carbon investments in nuclear, onshore and offshore wind and marine energy.

It is our intention also to play a leading role in the delivery of investments in electricity transmission and distribution systems, including the renewal of ageing assets, the strengthening of our networks and the development of localised Smart Grids, while supporting customers through the roll-out of smart meters, energy efficiency and services to support the increasing use of electric vehicles.

During 2010 we continued to invest in de-carbonising our generation portfolio by progressing plans for efficient CCGT power stations and investigating clean coal technologies. Alongside significant investments in wind and marine energy by ScottishPower Renewables and the IBERDROLA Group’s participation in a UK consortium to build new nuclear generation, this will diversify and strengthen our portfolio and reduce the carbon impact of the electricity we generate.

During the year we continued to invest in networks infrastructure, to support the connection of renewable energy sources, such as windfarms, and embarked on innovative projects, such as Smart Grids that will support the expansion of low carbon energy sources.

Throughout 2010, ScottishPower continued to be one of the UK’s largest suppliers of green energy to the public and business sectors. In addition, we launched our innovative, award winning Unifi energy monitor, to support and influence changes to the way our customers use energy in the home, and became a partner in a project to facilitate the widespread use of electric vehicles across central Scotland.

The period between now and 2020 will be one of major transition for our industry. We must reduce CO₂ emissions, while demand for electricity continues to grow, although at a slower rate than in the previous decade.

ScottishPower, as part of the international IBERDROLA Group, is well placed to invest in transforming the way we generate and transport electricity and to innovate in the service we provide to our customers – and as a Group we will continue to promote the exchange of best practice.

During 2010 we achieved many milestones, in terms of business performance – and the benefits we delivered to customers, communities and local economies.

Our procurement spend in 2010 exceeded £6 billion, helping to support our local economies. During the year we invested £60 million in customer energy efficiency and fuel poverty programmes, including £1.7 million in grants to 29 charities from our ScottishPower Energy People Trust, which helped 637,883 households out of fuel poverty.

During 2010 we also invested £98 million in environmental initiatives and £3.4 million in community programmes, including almost £1 million on education and training projects for young people.

But our CSR activities are not only about money. Nearly 200 employees volunteered their time and energy during the year to participate in community projects, ranging from encouraging science, technology and mathematics in schools, to carrying out landscaping projects in the heart of our communities.

These achievements are outlined throughout the CSR Annual Review, which provides details of our social and environmental programmes and performance during 2010. A number of specific programmes and projects are featured in more detail on our innovative CSR TV station.

As in previous years, we would welcome your feedback on our 2010 CSR Annual Review, via the feedback facility on this website.