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COMMUNITY INVESTMENT STRATEGY OUR FIVE PILLARS 2015-2016 Our approach to achieving our social responsibility aspirations.

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COMMUNITY INVESTMENT STRATEGY

COMMUNITY INVESTMENT STRATEGYOUR FIVE PILLARS

2015-2016

Our approach to achieving our social responsibility aspirations.

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COMMUNITY INVESTMENT STRATEGY

INTRODUCTION

Community investment at Northern Powergrid is about more than donations and sponsorships. Our unique position in our region gives us access to the communities we serve and a responsibility to use our local presence to make a positive impact

Northern Powergrid is the electricity distribution network that provides power to customers in the North East, Yorkshire and northern Lincolnshire.

We move electricity to and from homes and businesses over our network. We don’t sell electricity, neither do we operate power stations.

We judge our performance against our six core principles which help us achieve balanced outcomes for customers.

Our business has a fixed service area and we reach every household and business in that area. The responsibility of operating the electricity network carries the responsibility to support our communities with the best service possible.

1. Customer service2. Employee

commitment3. Financial strength4. Environmental

respect5. Regulatory integrity6. Operational

excellence

O U R C O R E P R I N C I P L E S

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01. INTRODUCTION

IMPLEMENTATION: How we meet community needs

Leadership

People

Processes and activities

Key Performance ResultsPolicy & strategy

Partnerships & Resources

People results

Community Partner Results

Society Results

Prepare Evaluate

Innovation & Learning

The diagram above demonstrates how we embed social responsibility within the business, and ensure that we are continually improving not only our activities, but our processes and culture to meet the changing needs of communities.

Social Responsibility and Stakeholder engagement are regularly discussed at board level to make sure a culture of responsibility and customer commitment is led from the top-down.

To meet our community investment pillars we have in place appropriate governance and resources to plan our operations effectively, so that the processes and activities we implement are fit for purpose.

Continued stakeholder engagement is considered ‘business as usual’ so that we can measure the success of our activities.

Key performance results are reported to leadership teams and used to continuously improve and embed innovation & learning in future programmes.

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COMMUNITY INVESTMENT STRATEGY

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01. INTRODUCTION

We are committed to our five customer promises that guide our employees to invest their time in the communities we serve and take pride in the service they deliver. These are:

Ö Putting safety first. Ö Respecting you, your time and your

property. Ö Doing a really good job. Ö Caring for our local environment. Ö Being there when you need us.

These promises are simple, powerful and applicable to every aspect of our work and every type of customer. They sum up the sort of business we want to be.

Our social responsibility strategy draws on our final and over arching promise, that of being there when you need us.

In order for us to deliver a strategy that aligns to our customer’s needs we have created our five pillars to ensure our investment plans focus on the right areas and have the most beneficial impact.

To build this strategy, we listen to our customers, experts and specialists to learn what we can offer that goes beyond the daily need of a reliable electricity supply.

BEING THERE WHEN YOU NEED US: Our social programme pillars

VULNERABILITY TO POWER CUTS

ENERGY AFFORDABILITY

STRENGTHENING COMMUNITIES

PUBLIC SAFETY & EDUCATION

EMPLOYEE ENGAGEMENT

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COMMUNITY INVESTMENT STRATEGY

Our partnership approach begins with a group of experts, drawn from a range of sectors, working with Northern Powergrid managers on our social issues expert group.

We support this group with direct contact with customers and stakeholders, asking for feedback and holding evaluation workshops, to make sure we are always measuring impact and looking for improvement.

Collaboration has always been, and will remain, the cornerstone of our ability to meet the needs of our customers and communities. We will continue to work with the members of our social issues expert group and other interested parties to promote general learning and research in this area.

WORKING IN PARTNERSHIP: Listening to customers & stakeholders

Derek Lickorish MBE, Fuel Poverty Advisory GroupChairman | Derek has had an extensive career over some 45 years in the energy industry. He is currently Chair of National Energy Action and a member of Ofgem’s Sustainable Development Advisory Group.

Jenny Saunders, Chief Executive at National Energy Action | Jenny has been Chief Executive of NEA since 2007. She is a member of the UK Government’s Fuel Poverty Advisory Group, Ofgem’s Sustainable Development Group, the Advisory Board for the Energy Institute at the University of Durham; and the Partnership’s Committee at Newcastle University’s

Institute for Sustainability. Jenny was awarded an OBE in the 2013 New Year Honours List for her services to the fuel poor. Shona Alexander, Newcastle Citizens Advice BureauChief Executive | As Chief Executive of the Newcastle Citizens Advice Bureau, Shona provides strategic and operational leadership and provides free, confidential and impartial advice to people who live and work in Newcastle.

Helen Brighton, British Red Cross, Senior Service Manager Yorkshire | Helen has worked for the Red Cross in Yorkshire Since 2011, managing Emergency Response, First Aid and Ambulance services. She previously worked as an emergency planner, planning the response to and managing community responses on behalf of a large Metropolitan Council.

Carol Botten, Vonne, Deputy Chief Executive | As the Deputy Chief Executive of Voluntary Organisations Network Northeast, Carol leads on income generation and new project development and management and works to build relationships with external partners to advocate on behalf of the sector.

O U R S O C I A L I S S U E S E X P E R T G R O U P

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01. INTRODUCTION

Ö Provide essential insights | our partners have expertise in a host of relevant social issues to guide us into making the right choices.

Ö Increase capacity | help us reach a wider audience.

Ö Provide opportunities | Our partners are experts in their fields and provide us with additional opportunities to support what they are doing.

Ö Help reach new audiences | Partners already have access to members of the community that we may struggle to reach or engage with.

Ö Provide expertise | Partners are crucial in providing expertise that we do not posses, so that we can be sure that we are providing services in the right way, that meet our customer needs.

Ö Strengthen relationships | working with partners deepens and strengthens relationships as well as introducing Northern Powergrid to new organisations and ideas; potentially leading to other projects in the future.

C H O O S I N G PA R T N E R S

Ö Organisations have similar values to Northern Powergrid

Ö Working towards a common aim in line with our social programme

Ö They are able to work with us for a reasonable amount of time

Ö There is an understanding of the value that an organisation can bring to the partnership

H O W W E W O R K

T O G E T H E R

For partnerships to add value, there must be a high amount of planning, flexibility, energy and commitment by all the parties involved. We do this by:

Ö Clarity of information: Set letters of agreements and terms of reference so all organisations understand expectations

Ö Decide together: Encourage participation and collaboration to improve the partnership and projects and decide on aims & objectives

Ö Consultation and communication: Ensure regular planning meetings take place to ensure plans are in place to meet goals and structured feed back mechanisms are in place

Ö Be flexible: Work together to overcome challenges that may occur throughout the partnership.

Partnerships with community and voluntary organisations are fundamental in helping us achieve the long term goals of our social programme. For us, partnership working is about an enduring commitment to working together based on shared values and goals to best meet the needs of communities.

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COMMUNITY INVESTMENT STRATEGY

Severe lightning storms caused damage and disruption to two areas of our network in July 2015; 57,500 households were without power on 1st July, and 27,000households were affected on 4th July. Our customer support vehicles were deployed to 19 locations, providing help and assistance to a potential of 8500 customers, 636 of which were on

our Priority Services Register.

H I G H L I G H T S

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02. VULNERABILITY TO POWER CUTS

VULNERABILITY TO POWER CUTSUsing our knowledge and local presence to offer extra help to customers most vulnerable during power outages

What we measure Ö Improved Priority Services

customer satisfaction scores from 58% to 76%.

Ö Increased number of customers registering onto our PSR through other social programmes.

Ö Increased number of referrals taking place through our PSR.

Ö Continue to monitor the number of direct contacts with our customer service vans in the event of a power cut.

Strategic evaluation Ö We will evaluate the

impact of our work through independent questionnaires & focus groups.

Ö Where possible we will measure the social return on investment of projects.

Ö We will utilise our partnerships to ensure that all relevant stakeholders are engaged with during the evaluation of our services.

Ö Measure the uptake of friends & family referrals through our digital application.

The issue For those that are vulnerable or electricity dependant a power cut can be devastating. We believe that we have a responsibility to those that are most vulnerable during a power cut to provide a bespoke service that meets their particular need.

For us, vulnerability includes those that are registered or are entitled to be part of our Priority Services Register (PSR), as well as small and micro businesses that will particularly struggle during a power cut.

Our Long-term goalProviding additional services to our most vulnerable customers is considered business as usual and embedded within every directorate.

In order to provide the best service possible we want to improve our network of contacts throughout the health and voluntary sectors, cultivated in conjunction with other utility providers in the region, to help us better our services and promote these to those that are most vulnerable.

Types of activities we will support

We will continue to work with the British Red Cross to provide both physical and emotional support during a power cut.

We will further develop our ability to meet the needs of the different types of vulnerability within our PSR, with specific focus in 2015-2016 on the elderly, those hard of hearing and blind or partially sighted.

We will continue to work with other organisations such as care professionals to develop referral processes to further assist vulnerable customers.

We will continue to improve the communication of our services to increase the understanding of the priority services register within local communities.

We will work with organisations that can help us achieve our ‘good neighbour’ plan.

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COMMUNITY INVESTMENT STRATEGY

In 2014 we launched a £50,000 Community Energy Seed Fund to help 10 community energy projects get started.

The scheme was so successful that we did it again in 2015, with a further set of projects awarded funding in December 2015.

H I G H L I G H T S

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03. ENERGY AFFORDABILITY

ENERGY AFFORDABILITY To help improve the homes and lives of our customers by providing far reaching and innovative solutions to energy affordability challenges.

What we measure Ö £ saved by customers who

take part in our energy affordability programmes.

Ö Number of people supported by our crisis support programmes.

Ö Amount of CO2 emissions saved through behavioural change & technical measures.

Ö Number of people who have received training on energy efficiency assessment of buildings.

Ö Energy customers who received a training course on energy bills and efficiency.

Strategic evaluation Ö We will measure the social

return on investment of our key projects.

Ö We will measure the environmental and economic impact of our key projects.

Ö Where possible we will evaluate the positive health impact that our energy affordability programmes have.

Ö Partnership evaluation; making sure we are working with the right partners to deliver our goals.

The issue The basic need for a warm, dry and healthy home is not being upheld for millions of individuals and families in England and across the UK.

They cannot afford the energy required to heat their home adequately and many suffer in cold, damp conditions that affect their health & wellbeing and diminish their quality of life and life chances.

Three factors have a bearing on fuel poverty: energy prices, household poverty and home energy efficiency.

As a distribution network operator we can’t help reduce energy prices, but we have the ability to make a real and positive impact by working with the right organisations to address household poverty and home energy efficiency.

Our Long-term goalTo be recognised as proactive at helping alleviate fuel poverty within our region through a joined up approach to stakeholder, charity and community connections.

If successful our community energy support will have helped create a thriving community energy sector, operating in partnership to promote the low carbon improvements and help those in fuel poverty.

Types of activities we will support

If we are to find a long-term solution to fuel poverty, a single company approach is not enough. We have to go further and work hand in hand with other utility companies, care professionals, community organisations and charities and individuals to drive forward innovation.

Our programmes will reduce fuel bills through behaviour and technical changes and we will work to develop more relationships with community organisations that can help us evaluate impact and social value; helping us improve and target our programmes more effectively in the future.

We will continue to support the Trussell Trust as a strategic partner and the Citizens Advice Bureau, who enable us to remain current and knowledgeable about the challenges that our customers living in fuel poverty face.

We will continue to develop relationships with community and care organisations so that we are able to reach more people that are living in crisis.

We will continue to provide the community energy seed fund during 2015-16 to help communities take control of the energy. In addition, where possible, we will seek to maximise our relationship with community energy groups by working alongside them in other energy affordability programmes

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COMMUNITY INVESTMENT STRATEGY

Through the community foundation we have provided £354,756 worth of funding for community organisations through our grant scheme.Organisations we have supported have included those that facilitate training, employment and skills support, work with disadvantaged children and provide communities with health & well being initiatives.

H I G H L I G H T S

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04. STRENGTHENING COMMUNITIES

STRENGTHENING COMMUNITIESTo make a positive contribution to the communities where we live and work.

What we measure Ö Number of people benefitting from the community foundations programme.

Ö £ given to local community organisations.

Ö Targeted outcome measures for major partnerships.

Strategic evaluation Ö We apply social return on investment analysis to all appropriate programmes to measure the effect in strengthening communities.

Ö We will measure the success of our online campaigns that focus on metal theft and reducing anti-social behaviour.

The issue We operate in very diverse areas where our customers require different levels of service. We also understand that in the event of a power cut or natural disaster, it is important that neighbourhoods have a strong enough relationship and knowledge to band together and support each other. A strong community relies on the following:

• Financial Wellbeing and capability.

• Safety. • Inclusion and participation

of disadvantaged people in community life.

• Reduction of anti social behaviour.

• Building capability to have a voice and leadership skills, including young people, women and new and emerging communities.

• Respect, fairness and a sense of belonging for customers of every race, culture and religion, focusing on the promotion of inter-community harmony and understanding.

Our Long-term goal

To have helped strengthen relationships, support families, improve wellbeing and increase the participation in community life to strengthen family and community functioning.

Types of activities we will support

We will develop a range of services, focused on strengthening relationships and providing support for better community connections. We will endeavour to develop and deliver programmes that can be self sustaining after our initial investment or programme end.

We will work with organisations to provide a foundation for integrated, community led programme delivery that understands and meets local needs and promotes innovation and collaboration.

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COMMUNITY INVESTMENT STRATEGY

We have been working with the crucial crew in Hartlepool to deliver safety presentations to year 6 pupils for 20 years.

The annual event has seen 22,000 pupils learn more about hazards including safety advice from Northern Powergrid School safety presenters.

H I G H L I G H T S

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05. PUBLIC SAFETY & EDUCATION

PUBLIC SAFETY & EDUCATIONTo help develop skills and nurture talent to improve the lives of our communities through our education and safety programmes.

What we measure Ö The number of children

who we deliver our safety education programme to.

Ö Positive results from our educational programmes will be 85% or more.

Ö The skills that students learn from our education programmes and where possible improved attainment in curriculum areas as a result of taking part in our programme.

Strategic evaluation Ö We will be transparent

with negative feedback and use this to improve our educational programmes.

Ö We apply social return on investment analysis to all appropriate programmes to measure the effect in strengthening communities.

Ö Improved skills of young people taking part in our programmes.

The issue Safety will always remain a high priority of our core education programme, and working with key stages 1-3 to help them understand the dangers of electricity is an important part of our social programme.

In addition, the energy sector has a disproportionate number of older workers and it is expected that the sector will face a skills shortage in the near future; as lower-skilled, younger workers replace higher-skilled retirees. As a company, we are working towards replenishing our workforce through our workforce renewal programme.

Energy affordability, when learnt at school and embedded in a young persons way of thinking, can have a very positive influence over their adult behaviour. It can also have a positive effect on the behaviour of the parents and families as children take home information and knowledge on energy efficiency and affordability Our Long-term goalFor all young people in our operating region to have access to safety advice and guidance.

To have in place a core education programme to include safety, STEM and energy, with the appropriate infrastructure/resource to deliver effective projects that add real value to the curriculum and the lives of the young people we speak to.

Types of activities we will support

Working with partners such as Ahead Partnership we will help safeguard the future of the engineering talent pool by offering accessible, tailored activities that promote the engineering sector in schools and colleges in our area.

We will work with organisations to facilitate the inclusion of energy affordability into our core education programme.

We will continue to provide our safety presenter programme however we will develop appropriate plans to meet the changing use of technology to make our safety information more accessible to young people, teachers, parents and carers.

Where as before our strategy focused on one to one contact with young people as a measure for success, we will look into ways in which we can measure the value and positive outcome of our programmes; enabling us to continuously improve.

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COMMUNITY INVESTMENT STRATEGY

From May to November 2015, 304 hours of school activities were delivered by Northern Powergrid employees.Almost 100% of employees felt improved job satisfaction and personal motivation, with an average of 88% that felt participation had improved planning & organisation, communication and leadership

skills.

H I G H L I G H T S

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06. EMPLOYEE ENGAGEMENT

EMPLOYEE ENGAGEMENT To invest in our people and create a positive culture within our company and in the communities where we work.

What we measure Ö 2% increase in

participation of volunteering opportunities.

Ö Number of opportunities available to employees and participation rates

Ö Skills learnt by employees taking part in the programme.

Ö Skills learnt by students that our employees are engaging with.

Strategic evaluation Ö We will gather both

positive & negative feedback to help us improve from voluntary organisations that we are working with to deliver our volunteering opportunities.

Ö Improved skills of employees participating including: presentation skills, communication, teamwork and flexibility.

Ö Both quantitative and qualitative feedback will be collected through questionnaires and workshops to understand how we can improve.

The issue Our employees take pride in Northern Powergrid’s central aim of keeping the electricity supply secure, and are highly motivated to support the customers we serve, and the communities they themselves live in.

Voluntary opportunities are rewarding for our employees and are essential for our social programmes. By engaging our people we can maximise those opportunities and value for all parties.

Our Long-term goalVolunteering is embedded within the company; managers are proactive and supportive of colleagues undertaking volunteering and see it as a professional development tool.

Our values are embedded within the company culture and brand; for communities & colleagues to understand, have a stake in and be part of our journey to a more sustainable company.

Types of activities we will support

Our Ahead Partnership scheme has been designed to align with our business goals and give employees the opportunity to help through volunteering opportunities. We will continue to develop this area of volunteering in addition to the Trussell Trust opportunities, further supporting other pillars within our community investment strategy.

We will provide open and transparent feedback on the programmes, giving information on the skills and knowledge that participation has resulted in, as well as areas that have been identified as needing improvement.

Our approach will be to deliver volunteering programmes that are right for employees whilst balancing the needs of our communities. For us this means regular feedback from volunteers, improvement workshop sessions with volunteers so that they can help improve the programmes based on their experiences, in addition to feedback from students and schools.

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