ESG

Our commitment to Empower Energy Evolution

Andreas Schierenbeck

Andreas Schierenbeck (CEO): "Between now and 2040, global primary energy demand will increase significantly. At the same time, carbon emissions must be permanently reduced and the energy supply become climate-friendlier. Uniper’s unique portfolio enables it to be part of the solution to this global challenge. We’ve set our strategic course to substantially increase the pace of decarbonization. Our strategy is to play a leading role in meeting the rising demand for energy while accelerating the decarbonization of the energy industry. And to scale up innovative technologies like green gases and alternative fuels that could be crucial for decarbonizing other industries. In short, our purpose is to Empower Energy Evolution."



What makes an energy company sustainable? We believe financial stability, a shared clear vision, strong relations with stakeholders, and a commitment to addressing adverse impacts transparently are key. But so is a willingness to adapt and, more importantly, to be a positive force for change. That’s why we’ve pledged to make our power generation business in Europe carbon-neutral by 2035. And to make decarbonization integral to our strategy and future investments not only for our European generation business but also for our Global commodity business as well as for our International generation portfolio. We call it Empower Energy Evolution.

Our ambition to drive decarbonization

We’re aware that our ability to adapt will be crucial for us to continue creating value for those who rely on us. That’s why we’ve geared our corporate strategy toward tomorrow’s energy world. We believe this world will offer us opportunities to develop new businesses and innovative solutions that will propel the transition to carbon-neutrality and support sustainable development while adding value to our company.

We generate energy. And we intend to Empower Energy Evolution. By steadily decarbonizing our business and by helping other companies decarbonize theirs. And, more generally, by promoting and supporting positive change for our company, employees, customers, and enterprise partners, for the communities and countries where we do business, and for our value chain.

Find out more on our Sustainability website: https://cr.uniper.energy/en/

Our sustainability highlights at a glance

Reduction in direct carbon emissions

21 %

from 2018-2019

Female Supervisory Board representatives

33 %

Since April 2020

Combined TRIF

1.48

in 2019, significantly below the threshold of 1.5 set in 2019

reduction in sulphur dioxide emissions

35 %

from 2018 to 2019

coal purchased from suppliers that signed up to the Bettercoal Code of Conduct

55 %

in 2019

trustbuilding dialogues with civil society organisations

4

conducted in 2019

FAQ

  • ESG Strategy, Management and Disclosure

    • What are Uniper's strategic priorities ?

      Uniper is committed to substantially contribute to the decarbonization of the German and European energy system by reducing its CO2-emissions from power generation and its growing activities in the field of hydrogen and other climate-friendly gases. This target will also be implemented by tailoring green products and services for Uniper's customers. Moreover, providing reliable power generation capacity as the prerequisites for further increase the renewables capacity and its integration into the European energy system is also one of Uniper's business objectives.

      The combination of tailor-made customer solutions, security of supply for Uniper's customers as well as Germany's and Europe's societies and climate protection is thus the guiding principle for Uniper's strategic business development in the coming decade. Achieving the EU climate neutrality targets, is Uniper's claim and obligation.

      Find out more in Uniper's annual report 2019: https://ir.uniper.energy/download/companies/uniperag/Annual%20Reports/DE000UNSE018-JA-2019-EQ-E-00.pdf

    • What is Uniper's active contribution to CO2 reduction ?

      Uniper will decommission almost 80% of its coal-fired power plant capacity in Germany by 2025. In line with the coal-phase out in the Netherlands and the United Kingdom, additional power plant capacity will be decommissioned. Moreover, Uniper targets to make its entire electricity generation in the EU CO2-neutral by 2035.

      For the electricity generation outside the EU, the company is examining how corresponding decarbonization solutions can be implemented in the long-term. The planned modernization projects in Russian gas-fired power plants, which will make a substantial contribution to increasing efficiency.

      CO2-free power supply is becoming an increasingly important part of Uniper's portfolio. Major contributions are already coming from European hydro and nuclear power plants as well as supply contracts (PPAs) from wind and photovoltaic projects in Europe. Uniper is also currently examining the commercial framework conditions for entering into the development, construction and operation of renewable energy plants.

      Uniper is using its decades of experience in importing, trading, storing and selling natural gas to set the course for a hydrogen-based energy system. Uniper is one of the first German energy utilities to implement projects for the production of green hydrogen based on electrolysis processes.

      In order to make a substantial contribution to the decarbonization of energy systems in the area of global commodity trading, Uniper is also working on developing global trade in climate-neutral gases and other energy carriers in the future.”

      Find out more in Uniper's Sustainability Report 2019: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • What are Uniper's ESG Commitments and Targets ?

      Uniper has a Sustainability Strategic Plan (SSP), which describes how sustainability supports the Group’s business strategy and defines improvement targets for its ESG performance. The SSP was first published in February 2019 and has been updated in May 2020. Uniper's dedicated HSSE & Sustainability function tracks progress towards the SSP targets on a quarterly basis. The results are presented to the Management Board and all business functions. Starting with this SSP, Uniper aims to build on its potential for business growth, characterized by active management to minimize the main negative environmental and social impacts caused by its operations. The SSP targets are built around a set of long-term commitments that reflect core elements of Uniper's corporate culture and business strategy.

      Find out more about Uniper's ESG commitments and targets: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • Is Uniper conducting a materiality assessment ?

      Uniper conducts a materiality assessment on an annual basis.

      In 2019 Uniper identified seven topics as most material: 1. Secure, reliable and affordable energy supply; 2. GHG (Greenhouse gas) emissions; 3. Health and safety; 4. Fair and attractive employer; 5. Diversity and inclusion; 6. Governance and compliance; 7. Human rights along the value chain.

      The materiality assessment adopted a two-dimensional approach that considered the economic, environmental and social impact of Uniper's business activities on the defined issues as well as the impacts of these issues on the company. The expectations of important stakeholder groups such as policymakers, competitors, non-governmental organizations and the financial market were taken into account as well. It was analyzed whether from their perspective the impacts could have a significant influence on the Group and third parties and the importance of the impacts for understanding the Group's current and future development.

      Find out more about our materiality assessment: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • Does Uniper respond to CDP (Carbon Disclosure project)?

      In 2019 Uniper responded to CDP's sector-specific climate-change questionnaire. The questionnaire regarded Uniper's performance in the 2018 calender year. CDP, formerly known as the Carbon Disclosure Project, runs as a global disclosure system for companies to improve awareness through measurement and disclosure of environmental data, climate risks and carbon management. CDP gave Uniper a "B-" which is an improvement on the previous score ("C"). The evaluation of the CDP questionnaire identified and realized potential for improvement in Uniper's sustainability performance. Uniper will continue with its efforts in 2020.

      Find out more about our CDP 2019 response: https://ir.uniper.energy/download/companies/uniperag/CDPResponse/Uniper-SE-CDP-Response-Climate-Change-2018.pdf

    • Is Uniper compliant with TCFD (Task Force in Climate-related Financial Disclosure) and GRI (Global Reporting Initiative) ?

      TCFD: Uniper closely monitors developments at the Task Force in Climate-related Financial Disclosure (TCFD), which has issued a framework for voluntary, consistent and climate-related financial risk disclosure that companies can use to provide information to their investors and stakeholders. Uniper will continue to assess whether the framework can add value to the future development of climate-related risk disclosures and financial reporting.

      GRI: Generally, Uniper applies the principles of GRI (Global Reporting Initiative) in its reporting for its sustainability report and Non-Financial Report.

      Find out more about Uniper's compliance with the GRI Index: https://ir.uniper.energy/download/companies/uniperag/ESG/Uniper_Sustainability_Report_GRI_Index_2019_EN.pdf

    • Does Uniper have an ESG Risk Management ?

      Uniper fulfills its environmental, social and governance (ESG) due diligence requirements by conducting dedicated sustainability risk management, which it aligns with its enterprise risk management to ensure that it addresses its most significant ESG risks on a quarterly basis. Uniper's ESG risk process includes assessing external as well as internal ESG risks that could arise from its operations. Furthermore, in 2019 Uniper established the ESG Task Force, a cross-functional steering committee whose purpose is to ensure that ESG risks are adequately identified, assessed and mitigated.

    • Who is responsible for ESG ?

      The Uniper SE Management Board bears overall responsibility for the adoption and implementation of Group-wide sustainability measures; with Chief Sustainability Officer (CSO) David Bryson playing a key role. The CSO periodically reports to the Supervisory Board on strategic sustainability activities. As Uniper's highest governance board the Supervisory Board monitors the Group's fulfillment of its sustainability obligations.

      The Management Board assigns the responsibility for defining Group-wide ESG targets and key performance indicators and for identifying ESG risks and emerging issues that could affect Uniper to the Health, Safety, Security and Environment (HSSE) and Sustainability function.

      Uniper's functional units and subsidies have a responsibility to implement annual HSSE and Sustainability Improvement Plans to support achieving the Group's overall HSSE and sustainability objectives and strategy. Employee involvement is essential for achieving a robust sustainability culture. The HSSE and Sustainability function reports on its performance to the Board by means of Quarterly Performance Dialogues and engages regularly with the Group Work Councils through the Consultative Council, a cross-functional committee that meets biannually.

      Find out more in Uniper's Sustainability Report 2019: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • Which sustainability-related policies does Uniper have ?

      Uniper has in place policies for its material ESG issues which are implemented throughout the Group and monitored regularly. These policies stipulate how the Group addresses these issues and how it coordinates the cascade effects across the organization.

      HSSE and Sustainability Policy Statement: https://ir.uniper.energy/download/companies/uniperag/ESG/HSSE_Sustainability-Policy-Statement_2017_11_03.EN-1.pdf
      Code of Conduct: https://ir.uniper.energy/download/companies/uniperag/ESG/code_of_conduct_eng-2.pdf
      Supplier Code of Conduct: https://ir.uniper.energy/download/companies/uniperag/ESG/supplier_code_of_conduct-5.pdf

    • Does Uniper commit to the UN Sustainable Development Goals (SDGs) ?

      Uniper supports the 17 UN Sustainable Development Goals (SDGs). Uniper has prioritized nine SDGs that fit with our business activities and sustainable strategy; 5 Gender equality, 7 Affordable and clean energy, 8 Decent work and economic growth, 9 Industry, innovation and infrastructure, 12 Responsible consumption and production, 13 Climate action, 15 Life on land, 16 Peace, justice and string institutions, 17 Partnerships for the goals

      Find out more about Uniper's commitment to the SDGs: https://ir.uniper.energy/download/companies/uniperag/ESG/supplier_code_of_conduct-5.pdf

    • Does Uniper consider ESG-related risks for new investments ?

      In March 2020, Uniper published its new financial framework to keep balance between dividend payment capacity, rating requirements and investment ambitions. Growth investments have to be in line with Uniper's new strategy. Climate footprint is now considered for every new investment. Uniper's new capital allocation or “hurdle-rate” concept underlines this ambition. Investments into projects with a strong decarbonizing element face a lower surcharge of currently 100 basis points above WACC compared to other projects. Carbon-exposure is considered to be the main variable when it comes to the riskiness of future cash-flows.

      Find out more about Uniper's new financial framework: https://ir.uniper.energy/download/companies/uniperag/Presentations/Uniper_Presentation_FY2019_and_Strategic_Update_10-03-2020.pdf

  • Environment

    • What are Uniper's generation capacities ?

    • What are Uniper's production volumes ?

    • What are Uniper's commitment to exit coal ?

      Uniper has a clear and ambitious exit-path for its own hard coal and lignite-fired power generation in Europe.

      Germany: Uniper currently has c.5,000MW of capacity in Germany including Uniper's new power plant Datteln IV with a capacity of c.1,050 MW. In January 2020, Uniper announced its commitment to exit coal-fired power generation in Germany by 2038 the latest. By the end of 2022 Uniper plans to decommission three hard-coal-fired power plant units at Gelsenkirchen-Scholven and Wilhelmshaven power station with a total capacity of about 1,500MW. By the end of 2025, Uniper will decommission two hard-coal power plant units at Staudinger and Heyden with a total capacity of about 1,400MW. In addition, Uniper has concluded the sale of its only lignite-fired power plant in Schkopau in eastern Germany to EPH, effective October 2021. From 2026 onwards, Uniper will only operate Datteln 4 in Germany, one of Europe's most modern coal-fired plants providing power and district heating to the Rhein-Ruhr region and powering its rail network. End of operations will be 2038 at the latest.
      UK: Uniper's four coal-fired units at Ratcliffe in the East Midlands are planned to be shut down in autumn 2025 or even in 2024 as recently announced by the U.K.’s Prime Minister.
      Netherlands: The government has set the shutdown date for Maasvlakte 3 at the end of 2029 without compensation. This will limit the overall life of the plant to only 14 years.

      In Russia, Unipro operates Uniper's only coal-fired power plant site outside Europe. The Berezovskaya site in Siberia is home of three lignite-fired power plant units with a total capacity of 2,300 MW. The technical lifetime of the plant extends beyond 2040. For the power plant sites affected by decommissioning, Uniper is developing forward-looking and sustainable transformation concepts for tomorrow's energy world that will also open up long-term employment prospects.

      Find out more about Uniper's coal exit path: https://ir.uniper.energy/download/companies/uniperag/Presentations/Uniper_Presentation_FY2019_and_Strategic_Update_10-03-2020.pdf

    • Does Uniper plan any new coal plants ?

      Uniper committed to do no further investments in new coal-fired power plants.

    • What is the amount of Uniper's direct CO2 emissions from fuel combustion (Scope 1) ?

    • What is the amount of Uniper's indirect CO2 emissions (Scope 2 and Scope 3) ?

    • How does Uniper define Scope 2 and Scope 3 CO2 emissions ?

      Uniper calculates its Scope 2 indirect emissions by using the location-based method and market-based method, respectively. The Scope 2 emissions include indirect emissions from purchased electricity used for pump storage in our hydro plants in Germany. Scope 3 indirect emissions are related to extraction and transportation of consumed fuels. The calculation of upstream Scope 3 emissions associated with extraction, refining and transportation of the raw fuel sources to an organization’s site (or asset), prior to combustion, use well-to-tank (DEFRA) fuel conversion factors.

      Find out more about Uniper's emissions: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • How high is Uniper's carbon intensity ?

      Uniper's carbon intensity if defined as the ratio between direct fossil-fuel-derived CO2 emissions from electricity and heat generation from Uniper's fully consolidated stationary facilities and Uniper's generation volume. It does not include facilities that produce only heat and/or steam.

      2019: 445 g/kWh
      2018: 499 g/kWh
      2017: 506 g/kWh
      2016: 502 g/kWh

      Find out more about Uniper's emissions: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • Does Uniper have a target to reduce CO2 emissions ?

      In March 2020, Uniper committed to make its power generation portfolio in Europe carbon neutral by 2035. That means going from 22 million metric tons of direct carbon emissions in 2019 to net zero. This commitment is part of a fundamental strategic reorientation focusing on a secure and climate-friendlier energy supply. Uniper will gradually reduce its portfolio’s carbon emissions. In addition, Uniper's management also committed to reduce CO2 emissions of Uniper's Global Commodities and International Power businesses.

      Find out more about Uniper's emission reduction targets: https://ir.uniper.energy/download/companies/uniperag/Presentations/Uniper_Presentation_FY2019_and_Strategic_Update_10-03-2020.pdf

    • What does Uniper do to reduce its environmental impact ?

      To minimize environmental risks, Uniper has in place management systems certified to ISO 14001, the internationally ­recognized standard for environmental management. As of year-end 2019, 100% of the operational assets of Uniper’s fully consolidated subsidiaries had retained their ISO 14001 certifications. All of Uniper’s fossil-­fueled power plants and energy storage facilities in Germany had retained their certification to ISO 50001, a standard for energy management. All our industrial facilities in other countries (the Netherlands, Hungary, Russia, Sweden, and the United Kingdom) ­retained their ISO 14001 certifications. We believe that having our industrial facilities certified to ISO 14001 enhances our ability to prevent incidents that could have adverse impacts on the environment.

      Uniper carefully investigates all incidents and all significant environmental near-hits and takes appropriate steps to prevent them from recurring. We also systematically share ­knowledge about previous incidents – at our company and across the industry – so that they are not repeated. In 2019, we had no ­severe environmental incidents, which we define as “the release of a substance to the soil, water, or air that would result in a long-term or irreversible change in the biological or physical environment.

      Find out more: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • What does Uniper do to promote biodiversity ?

      As part of obtaining permission to build and operate a power plant or other industrial asset, Uniper compiles biodiversity data about the site and surrounding areas, assess the asset’s potential impacts, and put in place, often in consultation with conservation agencies, management controls to minimize these impacts. Throughout an asset’s operating life, Uniper monitors the controls’ effectiveness. In addition, Uniper protects and, if possible, enhance the ecological value of the land and water around our assets and educate our staff and contractors on the importance of protecting and enhancing biodiversity.

      Find out more: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

  • Social

    • How does Uniper contribute to secure, affordable and reliable energy supply?

      Uniper’s long-term gas supply contracts, natural gas storage facilities, global gas trading activities, and capacity for regasifying liquefied natural gas (LNG) play an important role in supply security, especially when demand fluctuates. Furthermore, Uniper’s flexible generation facilities can respond quickly to fluctuations in renewables output, which is important for grid stability and supply security in several regions in Germany and elsewhere. In addition to producing electricity and providing stability to the grid, many of our plants supply heat, process steam, compressed air, and other products to nearby industrial enterprises and utilize some of these enterprises’ waste streams. We periodically upgrade the technology and processes at our assets so that we continue to ensure high rates of availability and efficiency and prevent unplanned downtime. Some of these upgrades also improve our assets’ climate performance.

      Uniper’s key performance indicator for supply reliability is average asset availability. Our power generation fleets in Europe and Russia had an average asset availability of 79.1% in 2019, which was roughly unchanged from 2018. Their unplanned unavailability was 12% in 2019, a slight increase from 2018 (11.6%).

      Fnd our more: https://ir.uniper.energy/download/companies/uniperag/Sustainability/uniper_sustainability_report_2019_en_final.pdf

    • How many employees does Uniper have ?

      Employees as of the reporting date:

      31.12.2019: 11,532
      31.12.2018: 11,780
      31.12.2017: 12,180
      31.12.2016: 12,635

    • What is the proportion of female employees ?

      Proportion of female employees:

      31.12.2019: 24.6%
      31.12.2018: 24.2%
      31.12.2017: 23.9%
      31.12.2016: 24.1%

    • What is the average age of Uniper's employees ?

      Average age of employees:

      31.12.2019: 45 years
      31.12.2018: 44 years
      31.12.2017: 44 years
      31.12.2016: 44 years

    • What is the employee turnover rate ?

      Employee turnover rate:

      2019: 4.5%
      2018: 4.7%
      2017: 5.0%
      2016: 4.0%

    • How many women does Uniper have in high-level executive roles ?

      Uniper’s target is for women to account for 25% of high-level executives by June 2022. At year-end 2019, 20% of these positions were held by women. Uniper intends to reach its target through more diverse selection and recruitment procedures, mentoring, flexible work arrangements for all employees, and similar measures.

    • How many employees are covered by a collective bargaining agreement ?

      In 2019 the share of pay scale employees (permanents + temporary staff + managing directors/board members + interns/working students + apprentices) was 68.9%.

    • What is Uniper's safety metrics ?

      Uniper's main safety metric for management purposes is the combined total recordable incident frequency (combined TRIF), which measures the number of incidents per million hours of work. Uniper has committed to reduce its combined TRIF threshold to 1.0 by 2025 by fostering continual learning, providing training, and further improving our management systems. In addition, there were no fatal and no severe, life-changing accidents in 2019.

  • Governance

    • What is Uniper's corporate Governance structure ?

      The governing bodies of the company are the Management Board, the Supervisory Board and the Annual Shareholders meeting. The company has a two-tier Corporate Governance structure. The Management Board and the Supervisory Board work independently of one another. A member of the company's Supervisory Board may not, in principle, be a member of the company's Management Board at the same time.

    • What is the composition of Uniper's Board of Managament ?

      The Management Board consists of:

      - Andreas Schierenbeck, the Chairman of the Management Board and Chief Executive Officer ("CEO")
      - Sascha Bibert, the Chief Financial Officer ("CFO")
      - Niek den Hollander, the Chief Commercial Officer ("CCO") responsible for commercial activities
      - David Bryson, the Chief Operating Officer ("COO") responsible for operations

      The members of the board of management shall be appointed by the supervisory board for a maximum period of five years. The first appointment of a member of the board of management, as a rule, should be made for a period of three years.

      Find out more about the members of the management board: https://ir.uniper.energy/websites/uniper/English/6100/management-board.html
      Find out more about the appointment and removal of members of the board of management: https://ir.uniper.energy/uniper/pdf/Geschaeftsordnung_AR_Uniper_SE_neu_Beschluss_en.pdf

    • What is the composition of Uniper's Supervisory Board ?

      The Supervisory Board consists of twelve members. Six members are elected by the General Meeting of Shareholders, and six members are elected by the employees in accordance with the agreement on employee participation laid down in the Uniper SE election procedures. Former Management Board members are, in principal, not allowed to serve as members of the Supervisory Board for a two-year grace period after leaving the Management Board. This is intended to prevent conflicts of interest. The Supervisory Board consists of four female members and eight male members.

      Shareholder representatives:
      - Prof. Dr. Klaus-Dieter Maubach (Chairman of the Supervisory Board)
      - Markus Rauramo (Deputy Chairman of the Supervisory Board)
      - Dr. Bernhard Günther
      - Prof. Dr. Werner Brinker
      - Sirpa-Helena Sormunen
      - Tiina Tuomela

      Employee representatives:
      - Harald Seegatz (Deputy Chairman of the Supervisory Board)
      - Astrid Asander
      - Oliver Biniek
      - Barbara Jagodzinski
      - Andre Muilwijk
      - Immo Schlepper

      Find out more about the members of the supervisory board: https://ir.uniper.energy/websites/uniper/English/6200/supervisory-board.html

    • How many members of Uniper's Supervisory Board are considered to be independent ?

      Uniper's Supervisory Board should include a suitable number of independent candidates. Members are to be considered independent if they do not have a personal or business relationship with the company, its Management Board, a controlling shareholder or a company affiliated with such a shareholder that could constitute a material rather than a merely temporary conflict of interest. The Supervisory Board includes a sufficient number of independent members if at least two shareholder representatives are independent, in addition to the employee representatives who are generally considered independent. The Supervisory Board should not include more than two former Board of Management members of the company and Supervisory Board members should not sit on the Boards of or act as consultants for any of the company’s major competitors.

      Uniper defines eight of twelve Supervisory Board members to be independent. The six employee representatives and two shareholder representatives, namely Dr. Bernhard Günther and Prof. Dr. Werner Brinker.

      Find out more about the members of the supervisory board: https://ir.uniper.energy/websites/uniper/English/6200/supervisory-board.html

    • What are the targets and competency profile of Uniper's Supervisory Board ?

      The Supervisory Board’s composition should ensure that, as a whole, its members have at their command the expertise, skills and professional experience needed to fulfill their duties properly.

      Find our more about the Targets and Competency Profile of the Supervisory Board: https://ir.uniper.energy/uniper/pdf/2020-04_Uniper_SE_targets_and_Competency_Profile_Supervisory_Board.pdf

    • What are the rules of procedure for Uniper's Supervisory Board ?

      The supervisory board of the company, by adopting a resolution, agreed upon the following rules of procedure: https://ir.uniper.energy/uniper/pdf/Geschaeftsordnung_AR_Uniper_SE_neu_Beschluss_en.pdf

    • What is the number of Board meetings attended by Board members during the last fiscal year ?

    • Do Uniper's Management Board members have a share purchase obligation ?

      In view of potential risk of insider trading, the share purchase obligation of Management Board members were suspended indefinitely by the Supervisory Board on March 11, 2019.

    • Does Uniper have a retention and clawback provision ?

      The service agreements of the Management Board members appointed from fiscal year 2019 forward contain retention and clawback provisions for the variable compensation (annual bonus and LTI) components. If the relevant aspects for determining the payout amount of variable compensation should prove to be incorrect after the variable compensation has been paid out, the Supervisory Board can reduce or completely eliminate the variable compensation (retention) and reclaim any excess compensation already paid out (clawback). The right to claw back excess compensation exists even if the Management Board member is no longer a member of the Management Board when the right is asserted. After a period of five years after it has been paid, variable compensation cannot be clawed back.

    • What are the basic features of the Management Board compensation ?

      The purpose of the Management Board compensation is in place since 2016 to create an incentive for performance-related and sustainable corporate governance. The compensation of Management Board members consists, in principle, of a fixed base salary, a performance-based annual bonus, and long-term performance-based variable compensation. The system is designed to be competitive and to meet regulatory requirements. At the same time, the compensation plan serves to align management and shareholder interests and objectives by tying long-term variable compensation to the so-called Total Shareholder Return, a measure of the market performance of Uniper's share price plus dividends paid.

      The Supervisory Board approves the Management Board compensation structure. It reviews the structure and appropriateness of the Management Board's total compensation and its individual components on a regular basis and, if necessary, makes adjustments. It considers the provisions of the German Stock Corporate Act ("AktG") and follows the German Corporate Governance Code's recommendations and suggestions.

      1. Fixed compensation: The members of the Management Board receive a fixed based salary, which is paid as a monthly salary.
      2. Performance-Based Compensation: About 60% of the variable compensation is dependent on the attainment of long-term targets, ensuring that the variable compensation is sustainable under the criteria of Section 87 AktG. Performance-based compensation consists of the annual bonus and long-term variable compensation.
      2.a. Annual Bonus: The annual bonus is dependent on the business performance of the Company in the respective fiscal year (possible target attainment 0%-100%). The Supervisory Board further assesses the individual performance of each Management Board member (applying a factor of 0.7 to 1.3). To determine Uniper's business performance, the Supervisory Board establishes performance measures and appropriate targets at the beginning of each fiscal year. Starting in the 2020 fiscal year, Uniper adapted the key indicators for the financial management of its operating business to its strategy and to standard practice in the capital market and, along-side adjusted EBIT, use adjusted net income to measure the financial management of the Uniper Group. Accordingly, adjusted net income will be used to determine the company's performance as part of the annual bonus.
      2.b. Long-Term Variable Compensation: Members of the Management Board are granted payments under a long-term incentive ("LTI") plan introduced in 2016. Uniper's LTI plan is the Performance Cash Plan. The plan is set up to pay annual tranches, with a performance period of four years for each tranche. The amounts paid out under the Performance Cash Plan are based on an LTI target amount, which is granted at the start of the performance period as a future entitlement, as well as on the respective performance factor. The performance factor is determined at the end of the performance period by comparing the absolute Total Shareholder Return ("TSR") achieved with the target values specified by the Supervisory Board. At the end of the four-year-performance period, the performance factor reached is multiplied by the respective LTI target amount to determine the amount to be paid out.

      For more details on the management compensation see the compensation report in the Annual Report: https://ir.uniper.energy/download/companies/uniperag/Annual%20Reports/DE000UNSE018-JA-2019-EQ-E-00.pdf

  • Contact

    In case you have additional ESG-related questions, please contact:
    Eva Göttges
    Manager Investor Relations
    Contact for ESG
    p +49 171 814 2018
    m Contact by email

Ratings and rankings

Ratings and rankings

We continually monitor our sustainability performance, which is rated and ranked by a wide range of independent organizations around the world. We continually strive to improve our performance.

Rating Companies Description Our Scores
CDP London-based CDP is a not-for-profit organization that runs a global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts. Its scores for climate and environmental disclosures range from D- to A. The average score in the European utilities sector is C. B-
(January 2020) Previous: C
Energy Intelligence’s Top 100 Green Utilities This ranking of the world’s top green power generators from both industrialized and emerging markets is based on the companies’ renewable energy portfolios and greenhouse gas emissions. Rank: 81
(2019) Previous: 72
MSCI ESG Ratings Based in New York, MSCI is an independent provider of insights and analytics that help investors identify ESG risks and opportunities. Its seven ESG ratings are grouped into three categories: laggard (CCC, B), average (BB, BBB, A), and leader (AA, AAA). Average BB
(July 2019)
Previous: laggard B
ISS-oekom ISS-oekom of Munich rates companies’ ESG performance on a scale from D- to A+. The prime threshold for the energy industry is B-. Being at or above the prime threshold indicates that a company is meeting or exceeding the ESG performance standards for its industry. C
(October 2019)
Sustainalytics ESG Risk Ratings Amsterdam-based Sustainalytics rates the industry-specific ESG risks of 9,000 companies worldwide. High score = high performance. 136 of out 442
(1 = lowest risk)
(January 2020)

Downloads

Downloads

  • Uniper Sustainability Report 2019 GRI Index
  • Modern Slavery and Human Trafficking Statement
  • Bettercoal in Kuzbass
  • Progress Report Dutch Coal Covenant 2018
  • Code of Conduct
  • Uniper Supplier Code of Conduct
  • HSSE & Sustainability Policy Statement