Activity and Sustainable Developement Report 2011 12

Activity and Sustainable Developement Report 2011 12
ACTIVITY AND SUSTAINABLE
DEVELOPMENT REPORT
2011/12
2
92,600 EMPLOYEES IN OVER A HUNDRED COUNTRIES*
€21.7 BILLION ORDERS BOOKED**
€682 MILLION RESEARCH & DEVELOPMENT**
58%
11%
58%
Europe
22%
22%
Asia & Oceania
11%
North America
6%
South America
3%
Africa & Middle East
3%
6%
Workforce by region
(at 31 March 2012).
**
For financial year 2011/12.
*
Alstom’s Thermal and Renewable Power Sectors cover the full spectrum of power generation technologies. Together, they
have the most comprehensive offer on the market. One in four light bulbs worldwide is powered by electricity from equipment with
Alstom technology.
THERMAL POWER has the industry’s most
comprehensive portfolio of thermal technologies – coal, gas, oil and nuclear – and holds
leading positions in turnkey power plants,
power generation services and air quality control systems.
The Sector is also a pioneer in carbon capture and storage
technologies.
Thermal Power has a workforce of 37,500 and booked
orders of €9.4 billion in 2011/12.
The most comprehensive range of power
generation technologies.
GRID is a leader in the world market for
power transmission, developing such key
technologies as high voltage AC substations,
high voltage direct current power electronics,
and solutions for managing and interconnecting power grids.
RENEWABLE POWER offers the most
comprehensive range of renewable power
generation solutions: hydro power, wind power,
geothermal today and solar energy, biomass and
marine energies tomorrow. The Sector is one of the world
leaders in hydro power, the largest source of renewable
energy on the planet.
Renewable Power has a workforce of 9,400 and booked
orders of €2 billion in 2011/12.
Over 25% of the global hydro power market.
Grid has a workforce of 19,000 and booked orders of
€4 billion in 2011/12.
TRANSPORT is a worldwide leader in rail
equipment and services with the broadest offer
on the market, from rolling stock and infrastructure to signalling and information systems
and maintenance. The Sector leads the world in
the construction of high speed and very high speed trains
and ranks second in urban transport and regional trains.
Transport has a workforce of 25,000 and booked orders
of €6.3 million in 2011/12.
Smart grid pioneer.
World record holder for rail speed.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 3
WITH ALSTOM
CONTENTS
With a presence in over a hundred
countries and a broad range of products and services in the power
generation, power transmission and
rail transport infrastructure markets, Alstom is at the forefront of
economic, social and environmental
progress.
OVERVIEW
The Alstom Group in 2011/12
Interview with the Chairman
Governance
Key figures
Shareholders
2
4
8
12
16
THE YEAR IN REVIEW 2011/12
18
Alstom designs, produces and offers
innovative technologies and solutions to its customers which meet
essential needs, are increasingly
efficient and ever more respectful
of the world we live in.
WITH ALSTOM, ACHIEVING
RESPONSIBLE PERFORMANCE
Thermal Power
Renewable Power
Grid
Transport
34
42
50
58
Alstom bases its success on a Code
of Ethics that is rigorously applied
by its 92,600 employees who
work closely with the community
of stakeholders that make up the
Group’s ecosystem.
WITH ALSTOM, SHAPING
A MORE SUSTAINABLE WORLD
Eco-company
Eco-design
Eco-solutions
66
72
78
These shared commitments are
expressed in products and services
that bear the stamp with Alstom.
WITH ALSTOM, BUILDING
A MORE HUMAN WORLD, TOGETHER
Life at work
86
Sharing ethics and responsibilities
94
Life together
100
FINANCIAL RESULTS
106
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 5
INTERVIEW WITH THE CHAIRMAN
“Environmental concerns
are a growth driver.”
When you released your results for
financial year 2011/12, you stressed
that the Group’s performance had met
its forecast.
We have continued to make the most
of our global reach and our partnership
strategy, which we have worked hard
to strengthen.
Yes, we met our goals, and that was by
no means a foregone conclusion in this
economy. Order intake increased 14%,
and sales rebounded gradually throughout the financial year. Operating margin improved during the second half
and reached 7.1% for the year, in line
with the forecast provided in 2010.
Free cash flow turned around and was
well into positive territory in the second
half. Our employees worked very hard
to achieve these results, and I want to
thank them here.
We also finalised a number of major
contracts in our traditional markets, particularly in Transport, but it is also true
that these markets generally continue to
reflect the prevailing wait-and-see attitude of economic players.
Alstom also continued to prepare for the
future, as we have in previous years, by
investing in a number of areas: adding
production capacity, modernising our
manufacturing base and continuing to
invest in research and development.
Throughout the crisis, we have never
sacrificed the future for the sake of
short term demands.
In last year’s interview, you stressed
that we had entered a “two-tier world.”
Do you stand by that analysis?
Absolutely. Continuing the trend from
last year, some 60% of our €21.7 billion
in orders came from emerging countries,
which are growing at a much higher rate
than the industrialised countries.
Orders began to turn around in
2010/11. Is that a long-term trend?
Which Sectors will drive Alstom’s sales?
There is still a huge need to build new
infrastructures and modernise existing
ones.
Naturally, there is short term uncertainty
in some segments, but orders should keep
moving in the right direction over the next
three years. Developing countries continue to present plenty of opportunities,
and the industrialised countries should
show positive signs, particularly in offshore wind and high-tech power transmission, with HVDC and smart grids.
Over the next three years, we expect
sales growth in all four of our Sectors,
Thermal Power, Renewable Power, Grid
and Transport.
“Throughout the crisis,
we have never sacrificed
the future for the sake of
short term demands.”
Patrick Kron,
Chairman and
Chief Executive Officer.
6
Are environmental concerns becoming a
growth driver for Alstom?
Environmental concerns – and the regulations
that go along with them – have been and will
continue to be a growth driver for us. They spur
demand for higher-tech products and more
complex services. And that is precisely what
sets us apart.
When we and our partners win a huge tender
for offshore wind power in France with the
most efficient turbine on the market, our offer
naturally responds to environmental concerns
and simultaneously gives us a competitive
edge. The same is true when we invest in smart
grid technologies, because these grids are now
essential in integrating wind and solar power,
which are inherently intermittent, and in managing the increasingly complex balance between
power generation and power consumption as
intelligently as possible.
Is that also true for power from thermal
sources? And for transport?
Naturally that is also true for thermal power –
for example, when the Thermal Power Sector
wins a large number of contracts to provide
environmental protection systems or to retrofit
existing power plants.
But in thermal power, meeting environmental
challenges also means offering more efficient
power plants that burn less fuel to generate the
necessary amount of power.
When we launch improved versions of our
GT26, GT24 and GT13 turbines, as we did in
2011, we offer equipment that is more powerful, more flexible, and more efficient. These are
advantages from an economic standpoint, but
they also benefit the environment.
As for rail transport, our offer clearly presents
the best possible solutions to the problems of
urban congestion and intercity mobility.
In 2011/12, we booked orders for very high
speed trains in France, locomotives in Russia,
trams in the United Kingdom and metros in
Singapore. All these contracts are investments
in social responsibility.
“Environmental concerns
spur demand for highertech products and more
complex services.
And that is precisely
what sets us apart.”
Some closing words on the outlook for
Alstom?
As I have said, we expect continued progress
in business development and in sales, which
should grow by more than 5% annually over
the next three years.
This sales growth, combined with continued
cost-control efforts, should produce gradual
improvement in operating margin, which
should reach around 8% by March 2015.
At the same time, we continue to focus actively on generating free cash flow, which
should be positive for each financial year in
the immediate future.
60%
OF ALSTOM’S ORDERS
IN 2011/12
ONCE AGAIN CAME FROM
EMERGING COUNTRIES
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 7
8
BOARD
OF DIRECTORS
(at 31 March 2012)
Alstom has been listed on the Paris stock
exchange since 1998. The Group has taken active steps to achieve its highly demanding goals
for transparent corporate governance based on
the AFEP-MEDEF corporate governance code
for listed companies. This means that Alstom
applies strict corporate governance rules, particularly with respect to the independence of
Board Directors and the missions of specialised
committees. A robust and broad internal control
system encompasses and supports all Group
Sectors and functions. By enabling quicker,
more reliable and more competitive operations,
1
2
the internal control system aims to ensure that
local laws and regulations are complied with,
that information and data including financial
information are reliable and that operations are
completed in an optimal manner. The Board of
Directors is expected to propose the renewal of
the terms of office of Jean-Paul Béchat, Pascal
Colombani and Gérard Hauser at the upcoming
Annual General Meeting on 26 June 2012.
More information about corporate governance can be found on Alstom’s internet site:
www.alstom.com.
3
4
Olivier Bouygues
Candace Beinecke
Jean-Paul Béchat
Alan Thomson
Deputy Chief Executive
Officer, Bouygues
Chair, Hughes Hubbard
& Reed LLP
Managing Director,
ARSCO
Chairman, Hays plc
5
Georges Chodron
de Courcel
6
7
Lalita Gupte
Katrina Landis
Chair, ICICI Venture
Deputy Chief Executive Funds
Officer, BNP Paribas
CEO and Group
Vice-President, BP
Alternative Energy
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 9
ETHICS AND SUSTAINABLE DEVELOPMENT COMMITTEE
This committee, which was set up in September 2010, comprises three
independent directors: Jean-Martin Folz (committee Chairman), Katrina
Landis and Pascal Colombani. The committee gives its opinion to the
Board of Directors on ethical and sustainable development issues.
8
9
Jean-Martin Folz
Patrick Kron
Company director
Chairman and
Chief Executive
Officer
10
James
William Leng
Chairman, AEA
Investors Europe
11
12
13
14
Philippe Marien
Pascal Colombani Gérard Hauser
Klaus Mangold
Representative,
Bouygues SA
Senior Advisor,
A.T. Kearney
Supervisory Board
Chairman, Rothschild
GmbH (Frankfurt)
Company director
10
EXECUTIVE COMMITTEE
(at 31 March 2012)
Defining strategy and general policies, setting
corresponding operational objectives, including
budgets and financial targets, in addition to allocating financial resources.
Upholding relations with the Board of Directors
and the external environment (shareholders,
financial community and the public).
1
Grégoire
Poux-Guillaume
President of Alstom Grid
Undertaking any action needed to implement
the strategy that cannot be efficiently transferred to the Sectors.
Enhancing the value of human resources,
including management of career development
and succession planning across the Group,
general employee relations, global compensation and benefit-related guidelines and policies.
2
3
4
Nicolas Tissot
Keith Carr
Philippe Cochet
Chief Financial Officer
General Counsel
President of Alstom
Thermal Power
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 11
EXECUTIVE COMMITTEE OVERHAUL
On 15 June 2011, Alstom announced that it would reorganise to step up
growth Group-wide. As a result of the move, the Executive Committee
has been thoroughly overhauled and operations are now structured into
four Sectors instead of three.
By reorganising Power into Thermal Power and Renewable Power,
Alstom has simplified operations for the new Sectors, and both are now
better positioned to meet specific market needs.
5
6
Patrick Kron
Bruno Guillemet
Chairman and
Chief Executive Officer
Human Resources
Director
7
Henri
Poupart-Lafarge
President of
Alstom Transport
8
Jérôme Pécresse
President of
Alstom Renewable Power
12
A SOUND COMMERCIAL
PERFORMANCE
ORDER INTAKE +14%
SALES -5%
In billions of euros
In billions of euros
Orders outstripped sales in every quarter of the financial year
and were particularly strong in the fourth quarter, the best
for the combined Power Sectors and Transport since financial
year 2008/09. Business was steady in emerging countries,
which accounted for around 60% of total orders, though
Transport’s European business was very brisk.
The decline in sales affected Thermal Power (down 10%)
and Transport (down 8%) in particular, reflecting the downturn in orders booked in 2009 during the crisis. Meanwhile,
Renewable Power’s sales were up 4% over last year and Grid
reported sales of €4 billion. As expected, overall sales gradually improved over the financial year, rebounding from a
low point in the first quarter.
2
19.0
2010 / 11
21.7
2
4
9.4
6.3
2011 / 12
Thermal Power 2011 / 12
Renewable Power 2011 / 12
Grid 2011 / 12
Transport 2011 / 12
2010 / 11
8.7
19.9
20.9
2011 / 12
4
5.2
Thermal Power 2011 / 12
Renewable Power 2011 / 12
Grid 2011 / 12
Transport 2011 / 12
ORDER BACKLOG +5%
OPERATING MARGIN +7.1%
In billions of euros
In millions of euros
At 31 March 2012, order backlog was nearly €50 billion,
representing around 30 months of sales.
Operating profit was slightly down as projected. But operating margin rose from 6.7% in the first half to 7.4% in the
second half, reaching 7.1% for the entire financial year.
4.3
46.8
2010 / 11
49.3
2011 / 12
18.8
150
5
21.2
Thermal Power 2011 / 12
Renewable Power 2011 / 12
Grid 2011 / 12
Transport 2011 / 12
1,570
1,406
850
248
264
2010 / 11
2011 / 12
Thermal Power 2011 / 12
Renewable Power 2011 / 12
Grid 2011 / 12
Transport 2011 / 12
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 13
STRONG INCREASE
IN NET PROFIT
NET PROFIT +58%
SHAREHOLDERS’ EQUITY
NET DEBT
In millions of euros
In millions of euros
In millions of euros
Net profit is up sharply over that for the
previous financial year, which reflected
high restructuring costs for capacity adjustments in Thermal Power and Transport in North America and Europe.
Shareholders’ equity was up after accounting for pension adjustments and payment
of the dividend.
The change in the Group’s debt position
primarily reflects negative free cash flow
over the period, as well as payment of
the dividend for financial year 2010/11.
462
2010 / 11
732
4,152
2011 / 12
2010 / 11
4,434
1,286
2011 / 12
2010 / 11
2,492
2011 / 12
OPERATING PROFIT AND OPERATING MARGIN PER SECTOR
In millions of euros
THERMAL POWER: -3%
9.0%
RENEWABLE POWER: -13%
GRID: N.A.
TRANSPORT: -34%
9.7%
6.2%
7.1%
6.0%
879
2010/11
850
2011/12
8.9%
5.1%
7.4%
173
150
2010/11
2011/12
218
248
398
264
2010/11
2011/12
2010/11
2011/12
14
A STEADFAST COMMITMENT TO
SUSTAINABLE DEVELOPMENT
PERCENTAGE OF CERTIFIED SITES
WORKPLACE ACCIDENTS
Key indicators for 2008 - 2011
Key indicators for 2008 - 2011
Since 2008 and in line with the Group’s targets, the
percentage of Alstom sites having achieved ISO 14001 or
OHSAS 18001 certification has grown steadily.
The Group’s exposure to accident risk affects both its production and construction activities. Preventing workplace accidents has been a Group priority for many years, addressed in
particular through Alstom’s Zero Severe Injury programme.
ISO 14001 Environmental Management Standard
38%
47%
52%
2008
2009
2010
83%
2008
2009
2010
2011
Injury frequency rate* (Alstom
employees)
2.8
2.3
1.9
1.8
Severity rate** (Alstom
employees)
0.09
0.07
0.07
0.05
Indicators audited by PricewaterhouseCoopers
* Number of accidents of Alstom employees with time lost due to injury per
million hours worked
**Number of lost work days per thousand hours worked
2011**
TRAINING
Key indicators for 2008 - 2011
OHSAS 18001 Occupational
Health & Safety Management Standard
22%
2008
34%
2009
36%
2010
* sites with more than 200 employees, including Grid
The mission of Alstom University (AU) is to support the attainment of the Group’s strategic objectives. Thanks to Alstom’s
culture of continuous learning and a perspective on the Group
as a community, employees have access to the knowledge,
skills and tools necessary to ensure Alstom’s success as well
as their own development.
58%
2011*
2008
2009
2010
2011
Percentage of employees having
received training
ND
67%
69%
74%
Average number of
training hours / employee
ND
21 h
20 h
19 h
5,600
6,300
8,900
8,231
Number of employees trained
by Alstom University
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 15
TOTAL ENERGY CONSUMPTION
ENERGY INTENSITY OF ALSTOM’S SITES
Key indicators for 2008 - 2011
Key indicators for 2008 - 2011
1,713
1,471
1,769
Alstom has undertaken a vast programme to reduce the energy
intensity of its sites (the ratio of energy consumption to revenue),
targeting a 20% reduction by 2015. At 31 December 2011, energy
intensity decreased by 12% compared to the reference year. The
significant reductions in energy intensity recorded by the Thermal
Power and Transport Sectors made a positive contribution to the
Group’s results.
1,629
94
91
88
86
75
2008
2009
2010
2011
In GWh
94
GREENHOUSE GAS (GHG) EMISSIONS
INTENSITY OF ALSTOM’S SITES
84
75
83
2008 2009 2010 2011 2012 2013 2014 2015
Energy intensity
(MWh/revenues in € millions)
Key indicators for 2008 - 2011
Ta
Target
(2
(20% reduction 2008 - 2015)
Alstom’s industrial sites use gas for heating and cooling
and electricity for industrial processes and lighting.
The Group has targeted a 20% reduction in its GHG emissions intensity (the ratio of GHG emissions to revenue)
by 2015.
WATER CONSUMPTION IN WATER-STRESSED
AREA FACILITIES
Key indicators for 2008 - 2011
At 31 December 2011, GHG emissions intensity increased
by 18% compared to the reference year. This increase is
attributable to the inclusion of SF6 emissions as a result of
the integration of Alstom Grid (this sector’s SF6 emissions
have been only taken into account since June 2010).
Alstom aims to considerably reduce water use by its industrial
sites, especially at those sites located in water-stressed areas.
In 2011, water consumption increased by 4% due to the change
in scope resulting from the full integration of Alstom Grid.
2,258
27
27
26
25
27
22
28
32
1,235
1,231
266
461
969
770
2010
2011
22
2008 2009 2010 2011 2012 2013 2014 2015
GHG emissions intensity
(tons of CO2 equivalent/
revenues in € millions)
1,583
Ta
Target
(2
(20% reduction 2008 - 2015)
2008
2009
In thousands of m3
Portion attributable to Alstom Grid
(Grid joined the Group in June 2010)
16
A CONSTANT DIALOGUE
WITH SHAREHOLDERS
SHARE OWNERSHIP
at 31 March 2012
The Group’s share capital is held by
approximately 230,000 shareholders.
(source: Euroclear / King Worldwide)
61.5%
Institutional investors
Individual shareholders
Bouygues
Employees
CAPITAL STRUCTURE
BY REGION
at 31 March 2011
23%
20%
4%
France
Rest of Europe
Americas
Asia & Middle East
ACTIVE COMMUNICATION
POLICY FOR INDIVIDUAL
SHAREHOLDERS
RELATIONS WITH
INSTITUTIONAL INVESTORS
AND FINANCIAL ANALYSTS
Besides the Annual General Meeting,
Alstom is developing opportunities to
meet and communicate with its individual shareholders. During financial year
2011/12, the Group took part in information meetings in Nice and Lille in France
– organised in association with FFCI (the
French Investment Club Federation) and
CLIFF (the French Association for Investor Relations). In 2012, the Group will
meet with its shareholders in Nantes and
Nancy. Site visits are organised in France
for individual shareholders to provide a
better insight into Alstom’s business activities. In 2011/12, one group of shareholders visited Valenciennes to see metro
production lines, while others toured the
Group’s La Rochelle site, where high
speed (TGV) and very high speed trains
(AGV™) and trams are assembled.
In addition to its periodical financial publications, Alstom offers its shareholders
a range of information tools, including
the shareholder letter which is published
twice a year in conjunction with the main
financial dates of the Group.
Roadshows are organised several
times a year in major American and
European financial centres (United
Kingdom, France, Switzerland, Germany, Italy). Information meetings
(presentations on Sectors, strategy,
etc.), as well as individual meetings
with investors and analysts take place
throughout the year.
Each year, the Group organises an analysts’ and investors’ day to present its
strategy and activities. This year, the
event focused on Alstom’s presence
and growth in Russia and the CIS and
covered all four Sectors. It was held
at Alstom Transport’s headquarters in
Saint-Ouen, with over fifty analysts
and investors in attendance.
The Group also participates in sectorspecific and general conferences organised by brokerage firms in France, the
United Kingdom and the United States.
During the financial year, the Group
also had the opportunity to present
its core principles for corporate governance and social and environmental
responsibility.
31%
6%
53%
The role of the Investor Relations team is to provide the entire financial community – individual shareholders, institutional investors and financial analysts – with
complete, regularly updated information on the Group’s strategy and its implementation.
1.5%
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 17
THE ALSTOM SHARE
at 31 March 2012
April 2011/March 2012
ISIN code: FR0010220475
50
Ticker symbol: ALO
45
Par value: €7
40
Number of shares:
294,533,680
35
Market capitalisation:
€8,618,055,477
Main indexes:
– CAC 40
– SBF 120
– Euronext 100
Alstom
CAC 40
Share price performance (in €)
Listed on:
NYSE Euronext Paris
30
25
20
15
04/11 05/11 06/11 07/11 08/11 09/11 10/11 11/11 12/11 01/12 02/12 03/12
Base: Alstom share price at 1 April 2011: €43.17
Source: NYSE Euronext Paris
STOCK MARKET NEWS
On 31 March 2012, the share price
stood at €29.26 and the stock market
capitalisation of the Group was
€8.6 billion.
DIVIDEND
For financial year 2010/11, Alstom paid
a dividend of €0.62 per share on 5 July
2011. The dividend proposed at the
Annual General Meeting on the 26 June
2012 amounts to €0.80 per share. This
represents a distribution rate of 32% of
the Group’s net profit, compared to 40%
for the prior year. The payment date has
been fixed for 3 July 2012.
KEEPING INVESTORS
INFORMED
CONTACTS
www.alstom.com
The Investors section of the Alstom website has been specially designed to provide shareholders with easy access to all
the Group’s financial communications:
share price quotes, downloadable historical data for the past five years, financial results, presentations, Registration
Documents, shareholders’ letters, dates
of important meetings, frequently asked
questions, as well as a service that dispatches press releases by e-mail. Printed copies of the Registration Document
for 2011/12 can be obtained in French
and English by sending a request to the
Investor Relations department.
Emmanuelle Châtelain
Vice-President
Juliette Langlais
Deputy
Alstom
3 avenue André Malraux
92300 Levallois-Perret
France
Tel: +33 (0)1 41 49 20 00
Fax: +33 (0)1 41 49 79 25
E-mail:
[email protected]
From France:
Toll-free number: 0800 50 90 51
From Monday to Friday,
9am to 7pm CET.
From outside France:
Tel: +33 (0)1 45 30 85 75
(calls charged at operators’ standard
rate).
THE YEAR
IN REVIEW 2011/12
In financial year 2011/12, fast-growing countries were still driving
demand for equipment, particularly in the power generation sector,
while most western countries will have to renew their infrastructures
amid lower consumption and tighter environmental requirements.
APRIL 2011
A GLOBAL
BOILER PROJECT
Alstom and Shanghai Electric Group
announce plans to create AlstomShanghai Electric Boilers Co.,
a 50/50 joint venture combining the
companies’ operations in the boiler
market for coal-fired power plants.
The new company would be the
world leader in the segment.
In Singapore, Thermal Power gets
the green light from power plant
operator, KMC, to begin construction
on the second unit of an 800 MW
gas-fired power plant (2x400 MW).
As with the first unit, Alstom will
design and build the plant, supply
key equipment and provide long-term
maintenance for the facility.
In India, Alstom wins a contract for
all infrastructure work on lines 1 and
2 of the Chennai metro, following an
initial agreement to supply rolling stock
in 2010. Construction of the 168 cars
will be divided between Alstom’s plant
in Lapa, Brazil and the future Chennai
site, which is scheduled to open in
2012.
NEW HUB TO CONNECT
THREE MAIN US POWER
GRIDS
Alstom Grid will supply HVDC* and
automation technologies to Tres
Amigas LLC for its SuperStation project
in New Mexico.
A worldwide first in the transmission
of green power (onshore and offshore
wind, solar and geothermal power),
the new hub will interconnect the three
main US power grids: the Eastern,
Western and Texas networks.
HVDC: high voltage direct current
In Malaysia, Alstom wins the majority
of a contract for construction of what
will be Southeast Asia’s biggest
(1,000 MW) supercritical coal-fired
plant. Alstom will supply the boiler,
steam turbine, generator and auxiliary
systems for the Manjung plant.
In Peru, Alstom Transport is chosen
to supply 19 Metropolis train sets
for the first metro in Lima, Latin
America’s fifth-largest city with a
population of over 10 million.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 19
2011 MAY
ALSTOM FINALISES
ACQUISITION OF 25% STAKE IN
TRANSMASHHOLDING (TMH),
RUSSIA’S LEADING RAIL
MANUFACTURER
Signed on 27 May, the partnership
agreement comes after several years
of close cooperation between the two
companies.
The first 3rd generation doubledecker high speed Euroduplex is
symbolically delivered by Alstom
CEO, Patrick Kron, to Guillaume
Pepy, Chairman of French railway
company, SNCF. The only doubledecker, very high speed train
capable of running on all European
rail networks, the new Euroduplex
features cutting-edge technologies
that significantly improve passenger comfort, information and
safety. SNCF has ordered a total of
55 trains: the first of them began
running on the new Rhine-Rhône
high speed line in December 2011.
Euroduplex trains will also be the
first to serve the new international
Frankfurt-Marseille line inaugurated in March 2012.
In 2010, Alstom and TMH won two
orders totalling 490 locomotives for
Russian Railways (RZD) and Kazakh
Railways (KTZ).
Also in Russia, Alstom Renewable
Power and partner, OEK, sign an
agreement with RusHydro to modernise the nine power plants in the
cascade hydro power complex on the
Kuban River in the country’s southern
region.
In Sweden, national power transmission systems operator, Svenska
Kraftnät, awards Alstom Grid a
turnkey contract to supply and
install a 420 kV alternating current
substation between the centre of
the country and its southern region.
The Barkeryd substation will be the
northern connection point between
Sweden’s national grid and the South
West Link, a major HVDC line.
Poland enters the high speed era.
Operator, PKP Intercity, awards
Alstom Transport a €665 million
contract to supply 20 high speed
New Pendolino trains (250 km/h),
plus another contract covering 17
years of maintenance and construction of a new maintenance depot.
At PKP’s request, the trains will not
include the Pendolino tilting system.
The first train sets will be delivered
in 2014.
HIGHLIGHTS
7.5 GW
WITH 7.5 GW OF INSTALLED
CAPACITY IN MALAYSIA,
Alstom is one of the country’s
leading suppliers.
MORE THAN 70% OF INDIA’S
POWER runs through networks
managed by Alstom systems.
11,230 MW
BELO MONTE DAM, in Brazil,
equipped by Alstom, will be the world’s
largest after China’s Three Gorges dam
and Brazil’s Itaipu.
20
JUNE 2011
ALSTOM’S
REORGANISATION
The Group seeks to boost growth and
meet new challenges by becoming more
streamlined, flexible and responsive.
At its core, the move reorganises
Power and divides Alstom’s operations
into four Sectors instead of three
– Alstom Thermal Power, Alstom
Renewable Power, Alstom Grid and
Alstom Transport. Other changes include simplifying the Group’s working
procedures, particularly its decisionmaking process and overhauling the
Executive Committee.
ALSTOM ACQUIRES 40%
STAKE IN AWS OCEAN ENERGY
The Group makes a strategic move into
marine energy. The Scottish company
is a global specialist in wave energy,
and its 2.5 MW AWS-III wave energy
converter complements the technology
used in Alstom’s 1 MW Beluga 9 tidal
turbine. Both products are still in
development.
In Germany, Alstom agrees to supply
56 Coradia Lint regional trains to
Deutsche Bahn (DB Regio AB).
The diesel trains will run on the
Cologne/Bonn regional network and
are expected to go into service in
December 2013.
ALSTOM CONFIRMS
LONG-TERM STRATEGIC
COMMITMENT IN RUSSIA
Major contracts to modernise
energy infrastructures are signed with:
RusHydro for hydroelectric power
stations, Renova for thermal plants,
Soyuz for smart grid technologies and
KER Ltd. for HVDC projects.
In Brazil, Alstom signs a contract with
Brasventos to build and service three
wind farms. The ECO 86 wind turbines
for the project will be manufactured
at Alstom’s new plant in Bahia, Brazil
with support from the Group’s plant in
Buñuel, Spain.
HIGHLIGHTS
30% of the world’s boilers,
with output of 800 GW WERE
MADE BY ALSTOM.
4,000 METROS
More than 4,000 ALSTOM METROPOLIS
trains are in service worldwide.
4 BILLION PASSENGERS TRAVEL ON
ALSTOM CITADIS TRAMWAYS.
To date, over 1,600 units have been
sold to 37 cities worldwide.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 21
2011 JULY
IRAQI MARKET
OPENS TO ALSTOM
Turkish energy company, Çalik Enerji,
awards Alstom Grid a contract to
supply gas-insulated substations and
transformers for two power plants
it is building in Iraq. In September, the Iraqi Ministry of Electricity
orders a gas-insulated substation for
Mosul East: under these two major
contracts, Alstom Grid will help
rebuild the country’s power grid.
In December 2011, Alstom Power
wins a turnkey contract, worth some
€400 million, to build the gas-fired
Al Mansuriya power plant 80 km
northeast of Baghdad. The 728 MW
plant will consist of four units based
on Alstom’s GT13E2 gas turbine.
Australia’s largest electricity transmission provider, TransGrid, chooses
Alstom Grid to supply three high
voltage electric substations in New
South Wales.
The contract includes a 300 kV gasinsulated substation, the first to be
delivered by Grid to this strategic
Australian customer after a number of
air-insulated substation projects.
20%
OF SPAIN’S INSTALLED COMBINEDCYCLE POWER PLANTS feature Alstom
equipment.
In France, RATP places a €300 million
order with the Alstom-BombardierAreva TA consortium to supply 66 train
sets for line 9 of the Paris Métro.
The order represents the third and final
phase of the contract, worth €200
million for Alstom Transport.
INDIA ADOPTS VARIABLE
SPEED TECHNOLOGY
In consortium with Hindustan
Construction Company, Alstom will
build a 1,000 MW pumped storage
hydro power plant on the Bhagirathi
River in the state of Uttarakhand.
The plant will be the first in India
to use variable speed technology,
which is particularly well suited to
energy storage.
150,000
disconnectors in 130 COUNTRIES
were supplied by Alstom Grid,
the WORLD LEADER IN THE
SEGMENT.
22
AUGUST 2011
NUCLEAR FUSION
Alstom contributes superconductivity
expertise to the ITER project. As part
of the international ITER Project, designed to show the feasibility of using
nuclear fusion for commercial power
generation, Alstom is selected by the
French Atomic Energy Commission
to supply nine magnetic coils to the
JT60SA, an experimental facility under
construction in Japan. Weighing in at
over 15 tonnes each, the superconducting coils wrap around the core,
confining the plasma, which is heated
to 150 million degrees, and keeping it
away from the chamber walls.
In the Middle East, Alstom Thermal
Power expands its leadership in air
quality control equipment, securing
two contracts worth over €100 million.
In the United Arab Emirates, the Group
will deliver two gas treatment units and
one fume treatment unit for the second
HIGHLIGHTS
The new KA26 plants reduce CO2 emissions
by 350,000 tonnes per year.
350,000 TONNES OF CO
2
phase of the EMAL aluminium smelter
in Abu Dhabi.
In Saudi Arabia, Alstom will supply a
seawater flue gas desulphurisation
system for phase two of the Marafiq
power plant on the Red Sea coast.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 23
2011 SEPTEMBER
EP20: ALSTOM AND TMH
UNVEIL THEIR FIRST
LOCOMOTIVE
First product of their strategic partnership, the EP20 is an electric locomotive
for Russia’s most up-to-date passenger
trains and one of the most powerful
locomotives in the world, developed in
just seven months by TRtrans, the joint
Alstom-TMH engineering centre.
The two partners also sign an agreement
to develop and produce the 2ES5 electric
freight locomotive: Russian Railways
(RZD) has already ordered 200 of the
freight version. Alstom’s share of the
contract is worth €400 million.
In Malaysia, Alstom Thermal Power
signs a contract for long-term servicing
of the Lumut power plant. The deal follows an agreement dating from 2004,
when the plant went into operation.
With nine GT13E2 turbines generating
1,943 MW, the Alstom-built Lumut
facility is the largest GT13E2 based
combined cycle gas-fired power plant
in the world.
190 MILLION TONNES A YEAR
in emissions were eliminated by 1,323 PROJECTS
and services delivered by Alstom between 2002 and 2010,
as certified by PricewaterhouseCoopers.
TWO NEW CONTRACTS
FOR HYDRO IN LATIN
AMERICA
Alstom Renewable Power
strengthens leading position in hydro
power market.
In Brazil, Alstom will provide equipment for the Santo Antonio do Jari
run-of-river hydro power plant in the
Amazon region, including Kaplan
turbines specifically designed for the
facility.
In Peru, Alstom will supply the new
450 MW Chaglla dam in Huánuco
with a complete electromechanical
package, including two vertical Francis turbines.
TWO CARBON CAPTURE
AND STORAGE PROJECTS
IN CHINA
Each of the two planned sites will
capture more than a million tonnes
of CO2 annually.
Alstom and China Datang Corporation form a long-term partnership for
joint development of carbon capture
and storage (CCS) demonstration
projects. Two pilot facilities will be
built near large Chinese oilfields:
an oxy-firing unit near the coal-fired
power plant in Daqing and another
using one of Alstom’s three suggested CCS technologies. Both units
are scheduled to begin operating in
2015.
200 MW will be generated by Costa Head,
THE WORLD’S LARGEST WAVE ENERGY
FARM, to be developed by Alstom and SSE
Renewables off the coast of Scotland.
24
OCTOBER 2011
CHINA CHOOSES
ALSTOM GRID FOR MOVE TO
ULTRA HIGH VOLTAGE DIRECT
CURRENT
Alstom Grid signs a cooperation
agreement with China Electric Power
Equipment and Technology Co. Ltd
(CET), a subsidiary of State Grid
Corporation of China, to develop ultra
high voltage direct current (UHVDC)
power transmission systems.
The main component of the agreement is the development of a
1,100 kV converter transformer, but
the partners will also cooperate on
manufacturing 800 kV HVDC converter transformers based on Alstom
technology.
In Venezuela, an Alstom-led consortium wins a €530 million contract to
build line 2 of the Los Teques metro,
an extension of the Caracas metro
system, which includes 600 Alstom
cars. Alstom Transport, which supplied
the electromechanical system for line
1, will act as overall coordinator for the
turnkey project and will also supply 22
Metropolis train sets.
ETHICAL BUSINESS:
Alstom’s Integrity Programme is
certified by the ETHIC Intelligence
agency after an audit in some ten
countries. The new certification
covers a number of measures taken
by Alstom over several years to
strengthen and expand its integrity
policy, and particularly to prevent
corruption.
APPITRACK NAMED
INNOVATION OF THE YEAR
IN LONDON
Appitrack, Alstom’s automated
tracklaying technology for metro and
tram lines, is named Innovation of the
Year at the 2011 Light Rail Awards.
Very quiet and compatible with all
types of track surfaces and equipment,
Appitrack can lay up to 200 metres of
track per day, versus only 50-60 with
conventional methods.
HIGHLIGHTS
50%
OF BRAZIL’S POWER is generated
by Alstom equipment.
623 CORADIA LINT
regional trains have been sold in
Germany, the Netherlands and Denmark
since their launch in 2000.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 25
2011 NOVEMBER
ALSTOM OPENS FIRST
LATIN AMERICAN WIND
TURBINE PLANT
in Brazil’s Camaçari industrial complex
in Bahia state. The new plant will
assemble 1.7 MW ECO 86 turbines and
manufacture 3 MW ECO 100s. Brazil is
among the fastest-growing wind energy
markets and the Nordeste region currently holds the most potential for
expanding this clean energy source.
INNOVATION AWARDS
2011
After a record 399 entries, on 21
November, 13 teams of finalists from all
four Alstom Sectors received gold, silver
and bronze medals for their achievements in five categories – Innovative
Processes, Innovative Systems and
Products, Green Innovation and Small
But Smart. A Special Prize was also
awarded.
Turkey moves towards rail interoperability. National railway operator,
TCDD, chooses Atlas ERTMS*, Alstom’s
interoperable signalling solution, for
the Eskişehir–Balikesir corridor linking
Ankara to the Aegean Sea. The contract
calls for supply of Smartlock electronic
interlocking solutions and Iconis integrated traffic control centres.
*European Rail Traffic Management System, or
ERTMS, is a command and control system for transEuropean rail traffic. Atlas is Alstom’s ERTMS solution.
In Russia, Alstom and its partner,
TMH, sign a letter of intent with
the city of Saint Petersburg, establishing a cooperation programme
to develop a modern tramway
network adapted to the regional
climate.
30MILLION
CORADIA IN SWEDEN
In Sweden, operator, Skånetrafiken,
signs a new contract with Alstom
Transport to supply 20 additional
Coradia Nordic regional trains for €100
million, with delivery scheduled for
2013-2014. In all, nearly 200 Coradia
trains of this type have been sold to
various Swedish operators since 2002.
PASSENGERS A YEAR: the benchmark reached
in December 2011 in the UK when Virgin Trains
began running 53 PENDOLINOS ON THE WEST
COAST MAIN LINE. That is double the figure
for 2004.
26
DECEMBER 2011
ALSTOM CHAIR
FOR SOUTH AFRICA’S ENERGY
FUTURE
Inaugurated on 1 December at the
University of Witwaterstrand in
Johannesburg, the Alstom Chair in
Clean Energy Systems is created
through a partnership with “Wits”
University dating back to 2009.
In a country suffering a dearth of
engineers, the Alstom Chair will help
train the next generation of engineers
specialising in clean energies.
22 CITADIS TRAMWAYS
FOR NOTTINGHAM (UK)
The Tramlink consortium wins the €600
million contract to build and operate
two new tramway lines. Under its
€350 million share of the order, Alstom
will be responsible for construction,
power supply and signalling for the
new lines. The Group will also supply
and maintain 22 Citadis trams and
maintain the 15 existing train sets for a
23-year period.
A major contract in Poland names
Alstom Thermal Power to supply
Elektrownia Rybnik S.A. (ERSA, a
subsidiary of French utility, EDF) with
the core power generation equipment
for a future 900 MW supercritical
coal and biomass plant at its Rybnik
site. Alstom will provide the boiler
and coal milling system along with
the complete turbine hall, including steam turbine, generator and
balance-of-plant auxiliaries. Commercial operation is planned for 2017.
HIGHLIGHTS
1,943MW
OF POWER IS GENERATED BY THE
NINE ALSTOM GT13E2 turbines at
Malaysia’s Lumut plant, the world’s
largest combined-cycle gas-fired
power plant.
73.5 METRES: RECORD BLADE LENGTH FOR
ALSTOM’S 6 MW HALIADE 150 offshore
wind turbine.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 27
2012 JANUARY
ALSTOM GRID SCORES
A EUROPEAN FIRST IN SWEDEN
Operator, Svenska Kraftnät, chooses
Alstom Grid’s MaxSine™ HVDC
technology.
The new €240 million contract with
Svenska Kraftnät covers supply of
MaxSine™ high voltage direct current
technology for Sweden’s 1,440 MW
South-West Link. MaxSine™ is based on
voltage source converters (VSCs), which
Alstom will also supply to the Tres Amigas SuperStation in the United States.
Scotland to host world’s largest wave
energy farm. Alstom partners with
SSE Renewables for joint development
of a 200 MW wave energy farm in
waters over 60m deep at Costa Head
in the Orkney archipelago. The partners
plan to use the AWS III converter, now
being developed by AWS Ocean Energy
Ltd., a Scottish company in which
Alstom holds a 40% stake.
In France, a consortium led by EDF
Energies Nouvelles responds to a July
2011 call for tenders by the French
government, bidding to build four
of five wind turbines off the coast
of Normandy and Brittany. The bid
also includes an ambitious plan for
expanded manufacturing capacity;
as the consortium’s exclusive supplier,
Alstom proposes to build four new
plants for large-scale production of
its 6 MW Haliade 150 wind turbine.
ATLAS ERTMS IN SPAIN
Adif, the Spanish railway infrastructure manager, awards a contract to a
consortium led by Alstom Transport.
Under the contract, the consortium
will build a signalling and telecommunications system for the planned
high speed Albacete-Alicante line and
provide 20 years of maintenance.
The key technology for the project
is an Atlas ERTMS Level 2 system,
supplied and installed by Alstom.
18CARBON
CAPTURE AND STORAGE PROJECTS
AROUND THE WORLD are managed by
Alstom including two planned for China.
Europe’s largest industrial alliance
for carbon capture and storage.
Alstom and Drax Power team up with
British industrial gas provider, BOC,
to develop an oxy-fired carbon capture
and storage (CCS) demonstration unit
at a Drax site in Yorkshire, England.
In early April 2012, the consortium will
be chosen to build three projects with
a total volume of around 240 wind turbines. Locating the four new factories
in France represents a €100 million
investment and will create 1,000 direct
and 4,000 indirect jobs.
Denmark to replace entire rail
signalling system. Banedanmark,
owner of Denmark’s rail infrastructure, chooses Alstom Transport to
supply and install the Atlas ERTMS
system in 12 intercity and regional
lines in the country’s eastern region,
which has the highest rail density.
At €300 million, the contract is
Transport’s largest to date in this
segment.
6 OUT OF 10 RAIL LINES IN EUROPE
USE ALSTOM’S ATLAS ERTMS LEVEL 2
interoperability technology.
28
FEBRUARY 2012
ALSTOM BECOMES THE FIRST WESTERN SUPPLIER
IN RUSSIA’S NUCLEAR MARKET
AAEM, the joint venture created in
2007 by Alstom and Atomenergomash, will supply conventional island
equipment for both of the 1,200 MW
pressurised water reactors at Kaliningrad’s Baltic nuclear power plant.
34 NEW METROPOLIS
TRAIN SETS FOR
SINGAPORE’S METRO
In a deal worth €240 million, Alstom
will supply the driverless trains for
the recently completed Circle Line
and the North East Line and will
upgrade the signalling system for
both lines. The new train sets are
updated versions of the system’s
current units, delivered previously
by Alstom.
In Tajikistan, Alstom Grid is chosen
to install a 500 kV gas-insulated
substation for the Nurek hydro power
plant. The new GIS unit, which will
replace the existing air-insulated
substation, will be the first of its kind
in Central Asia. The new contract
is part of a cooperative relationship
with the Tajik national utility, Barki
Tajik, dating back to 2000.
1,000 MW COAL-FIRED PLANT IN MALAYSIA
Awarded to a consortium formed by
Alstom, this contract calls for delivery
of a 1,000 MW supercritical coal-fired
plant to Tanjung Bin Energy Issuer
of Malaysia. As the leading supplier
of power generation equipment in
the country, Alstom will provide all
key equipment for the plant and will
handle engineering, project management and commissioning, planned
for 2016. This order from Tanjung
Bin comes on the heels of a similar
contract for the Manjung power plant
now under construction.
In Dubai, the consortium of Alstom
and Cofely–Besix FM wins a 13-year
contract to maintain rolling stock and
fixed facilities to be delivered by the
two companies for phase 1 of the
Al Sufouh tramway: 11 Citadis train
sets, 10 km of track and 13 stations.
Dubai is the first city in the Gulf region
to install a tramway system and the
fifth (after Bordeaux, Reims, Angers
and Orléans) to choose Alstom’s APS
ground-level power supply system.
HIGHLIGHTS
16SMART GRID
DEMONSTRATION SITES ARE OPERATED
by Alstom Grid in Europe and the United
States.
1,750 MW
record output for Arabelle, the Alstom
steam turbine planned for the EPR
(European Pressurised Reactor) power
plant in Flamanville, France.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 29
2012 MARCH
WORLD’S LARGEST WIND TURBINE
INAUGURATED IN FRANCE
Haliade 150: 6 MW, 180 metres tall,
1,500 tonnes.
The Alstom Haliade 150 turbine was
unveiled during an official ceremony
at the Carnet site near Saint-Nazaire,
west of France, where it will undergo
a series of tests. A twin turbine will
be installed off the Belgian coast in
2012.
In Colombia, Alstom Grid signs two
turnkey contracts to supply 115 kV
gas-insulated substations: one to
Neiva, in Huila province, and another
to Ecopetrol for the 960 km Bicentenario pipeline, which will be the
longest in the country.
Customers in the Netherlands and
Kuwait choose Alstom’s e-terra
smart grid solutions. Stedin, one of
the largest distribution utilities in the
Netherlands, will use Alstom Grid’s
solutions as part of a strategy to
deploy smart grid technologies on a
large scale for power distribution and
to integrate renewable energy sources
into the Dutch grid.
In Greece, Attiko Metro and the
French-Greek-Italian consortium
consisting of Alstom Transport,
J&P Avax and Ghella, sign a contract
to extend line 3 of the Greek capital’s
metro to the Port of Piraeus.
Alstom’s share of the project includes
designing and installing power supply
systems for traction power, including
a third rail.
50%
NEARLY 50% OF QUEBEC’S HYDRO
POWER capacity was installed or
retrofitted by Alstom.
Kuwait’s Ministry of Electricity and
Water will use Alstom’s technology to
create a single system for managing
medium and high voltage in Kuwait
City, to make its grid more efficient
and reliable, and to maintain existing
equipment.
1
st
STONE
THE FIRST STONE OF THE
TANGIER-CASABLANCA
high speed line was laid on
29 September 2011 in Tangier,
with the King of Morocco and the
President of France in attendance.
SNCF ORDERS 30
ADDITIONAL ALSTOM
EURODUPLEX TRAIN
SETS FROM ALSTOM
SNCF’s exercise of the option –
a firm order for 30 train sets plus ten
more – brings to 95 the total number
of very high speed double-decker
train sets ordered by the French rail
operator. Earmarked to operate in
France, Germany, Switzerland and
Luxembourg, the Euroduplex trains
have signalling equipment compatible
with these rail networks, and their
traction system is adapted to the
various electric currents used across
Europe. In addition, the Euroduplex
delivers the best operating costs
and the highest return per seat. The
order for 30 train sets is worth nearly
€1 billion for Alstom Transport.
2,375 KM
THE WORLD’S LONGEST HIGH
VOLTAGE DIRECT CURRENT LINE
is in Brazil and was equipped by
Alstom Grid.
OUR VISION
Believing that technology and new
business models contribute to solving
social and environmental issues,
Alstom leads in designing innovative,
environmentally-conscious technology
solutions for power generation, power
transmission and transport.
OUR PRINCIPLES
With Alstom’s technologies,
we are shaping the future responsibly:
• Our products are designed to minimise the use of natural resources
and safeguard people and the environment.
• Our solutions help our clients limit their impact on the environment
and improve the quality of life for local communities.
• Our products and solutions provide access to electricity and facilitate mobility,
ensuring sustainable economic growth and social progress.
With Alstom’s know-how,
• We lead the way in innovation, working in partnership with our stakeholders
to achieve sustainable value chains.
• We work ethically and safely, with respect for people and the environment.
• We are all focused on our values of trust, team and action.
THERMAL
& RENEWABLE POWER
Thermal Power and Renewable Power build their offer on
an in-depth understanding of power generation markets
and customer needs.
To give customers maximum return from assets over the
entire lifecycle, the power offer is geared around the three
goals that drive Alstom’s product and portfolio development
strategy:
• keep assets competitive by reducing the cost of power
generation,
• make assets increasingly eco-friendly by shrinking
their environmental footprint,
• make assets more flexible and reliable, so that they
can adapt to fluctuating power and fuel markets and
generate the necessary electrical load with maximum
reliability, availability and ease of maintenance.
Generating reliable, competitive,
eco-friendly power.
OPTIMISING ENVIRONMENTTA
PERFORMANCE WITH ALSTOML
Thermal Power
Renewable Power
130
152
165
63
189
68
42
59
8
88
93
102
10
11221
21
2007
2008
2009
2010
Cumulative annual emissions
avoided by Alstom customers
from
2007 to 2010 (in millions of tonn
es of CO2).
Workers retrofit a GT11N gas
turbine at the Tung Hsiao power
plant in Taiwan.
WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
THERMAL
POWER
ALSTOM OFFERS ITS CUSTOMERS SOLUTIONS WHICH HELP
SECURE ACCESS TO POWER FOR THE GREATEST NUMBER
In a world where more than a billion people still have no access to
power and the population continues to grow, there are many challenges. Everyone is aware of the economic, social and environmental importance of sustainable growth, but priorities vary sharply from
country to country: environmental issues are often the first concern in
developed countries, while emerging countries naturally focus on the
social impact of universal access to power, local job creation, education
and economic considerations.
In response to these challenges, Thermal Power has developed an offer
that gives customers a decisive advantage, both by maintaining their
installed base and by ensuring that they can deliver safe power at a
reasonable cost. And by offering back-up power supplies, renewables
increase their share in the energy mix. Though fossil fuel combustion
remains the leading cause of greenhouse gas emissions, coal will
continue to play a major role in power generation because it is easily
accessible and widely available. As a result, making power plants more
energy-efficient and developing carbon capture solutions are critical to
reducing emissions.
The challenge is offering our customers integrated solutions which let
them deliver power to the greatest number of people at an acceptable
cost so that sustainable economic development continues and everyone enjoys a higher standard of living, while limiting effects on the
environment and health.
Philippe Cochet
President, Alstom Thermal Power and Executive Vice-President of Alstom
80%
In 2011, 1.3 billion people
had no access to electricity.
Of that population, 80% lived in rural areas.
35
36
WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
WORLD-CLASS TECHNOLOGIES
PRODUCTS AND SERVICES
The market for power generation equipment closely tracks the ups and downs of
the world economy. In the United States and
Western Europe, the crisis and its attendant
uncertainties slowed power consumption and,
as excess capacity weighed on the existing
infrastructure, construction of new thermal
plants.
With most plant operators continuing to
postpone investments in new facilities, the
recovery that began in autumn 2010 has yet
to produce a genuine rebound in demand in
these regions.
Although the market for new thermal plants
was down overall, Thermal Power booked
€9.8 billion in orders, up 17% over 2010/11,
with the second half showing stronger growth
as expected.
Sales came in at €8.7 billion, up 10% over the
previous year, but still reflecting the drop in orders during the recession. Meanwhile, Thermal
Power has expanded its production capacity in
developing markets, building a new steam turbine plant in India with Bharat Forge and forming partnerships with Renova and RusHydro
in Russia.
But this has an advantage: as the installed
base ages and the environment continues
to be a concern, the need to modernise and
replace equipment becomes more acute –
a trend that continued in 2011/12.
In India, China and other fast-growing
countries, by contrast, vigorous growth drove
power consumption, and with it, the need to
build new production units. As in the previous
financial year, these markets accounted for
around 60% of Thermal Power’s orders.
2008 CO2 EMISSIONS
FROM POWER GENERATION
By fuel type
Coal: 73%
Gas: 20%
A WORLDWIDE PRESENCE
An industrial presence in 70 countries,
with 30 production sites, over
50 engineering and R&D performance
centres and 37,500 employees.
THE UN HAS DECLARED 2012
the “International Year of Sustainable Energy for All”.
Oil: 7%
4,169 GW
of additional capacity to be built
from 2009 to 2035.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
The Lake Road KA24 combined-cycle plant
in Connecticut delivers output of 800 MW.
5 POINT STRATEGY:
1. Continue expanding services for the installed base.
2. Boost component sales while continuing to offer integrated turnkey
solutions.
3. Expand our presence in the 60Hz market.
4. Broaden our product portfolio.
5. Strengthen our presence in Asia, Russia and the Middle East.
ACCORDING TO THE INTERNATIONAL
ENERGY AGENCY (IEA),
the cost of decarbonising our electricity
supply (i.e. removing CO2) without using
CCS technology will be 70% higher in 2050.
37
38
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NEW NUCLEAR
PARADIGM
The Fukushima accident naturally affected
the nuclear renaissance that began several
years ago, as Germany and Italy pulled out
of nuclear power and other countries put
existing or planned programmes on hold. But
more than 30 countries still have a nuclear
power programme. During financial year
2011/12, India ordered a steam turbine –
and chose an Alstom-BHEL partnership to
supply it. Russia, which had already begun
implementing plans to replace its oldest
plants, opened its doors to Alstom by awarding two contracts to the Group in rapid
succession: one covering five emergency
diesel generators for the first of four phases
in the Leningrad II power plant project in
Sosnovy Bor near Saint Petersburg, and even
more importantly, an order for conventional
islands to equip the two 1,200 MW units in
the Kaliningrad region’s Baltic power plant.
Service activities for nuclear power plants,
which account for half of Thermal Power’s
nuclear business, remained significant in
2011, with several projects involving retrofits of nuclear steam turbines in the United
States and Finland.
Germany’s Neurath
supercritical power plant,
built by RWE Power AG.
CLEANER COAL
The slowdown in Chinese and Indian demand
for new coal-fired power plants impacted the
market, even though new plants were ordered in the Middle East and Southeast Asia. In
Europe, Poland continued to make its installed
base greener, awarding a contract to Thermal
Power to supply key components for a new
900 MW ultra-supercritical power plant fuelled
with coal and biomass.
Germany commissioned the Neurath power
plant, which features cutting-edge boiler, turbine and generator technologies made by
Alstom.
Amid rising needs for electricity in emerging
countries and continued progress towards more
efficient combustion and lower emissions, coal
will surely continue to play a dominant role in
coming years.
With that in mind, Alstom and Shanghai
Electric have begun talks on creating a joint
venture that would lead the world boiler market. If completed, the agreement would give
Alstom access to the enormous Chinese market.
CHINA’S POWER DEMAND WILL
TRIPLE BY 2035, requiring new
construction equivalent to the generation capacity of the United States.
CCS UPDATE
Alstom is conducting or laying the groundwork for a total of 18 carbon
capture and storage (CCS) demonstration projects around the world and
new customers are expressing interest in this new weapon against global
warming. In China, the Group signed a memorandum of understanding
to form a long-term partnership with China Datang Corporation to build
two pilot sites linked to two coal-fired power plants. In Great Britain,
Alstom and Drax Power have partnered with industrial gases provider,
BOC, to build a demonstration unit in Yorkshire. The project will link
into the CO2 transport and offshore storage network currently being
developed by National Grid, the UK’s national power company.
FORECAST FOR 2050:
9 billion human beings,
with 70% in urban areas,
up from 50% in 2011.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
INCREASING INTEREST
IN NATURAL GAS
But the most promising signals are coming
from the booming natural gas market. Single
and combined-cycle gas plants are increasingly
attractive, thanks to their advantages in cost,
efficiency and emissions – and versatility, since
they can be used both to generate electricity and
to power industry. As a result, Thermal Power
booked a number of large orders in 2011. These
included Singapore (KMC), Mexico (El Sauz
GT24 plant retrofit) and, marking Alstom’s
return to the country, Iraq (Al Mansuriya).
In another increasingly valuable feature for
environmental protection and grid efficiency,
BY
2035
Alstom’s offer is highly responsive: plant output
can be adjusted based on the flow of renewable
energies – and particularly wind power, which
is inherently intermittent – into the grid.
China is also increasingly interested in natural
gas, and particularly in exploiting its ample
shale gas reserves.
NON-OECD COUNTRIES are expected to
account for 90% of demographic growth,
70% of world economic growth,
and 90% of growth in demand for energy (IEA).
Workers test a GT26
gas turbine.
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WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
NEXT-GENERATION
GAS TURBINES
THE ACKNOWLEDGED
SERVICE EXPERT
In response to rising demand for gas-fired
plants, Thermal Power launched a concentrated
Research & Development effort to enhance its
gas turbines. The new generation of Alstom’s
powerful GT24 and GT26 turbines was
launched in 2011, along with a corresponding
range of combined-cycle power plants: the
KA24 plant for 60Hz markets in the Americas
and Asia and the KA26 plant for Europe, Asia,
the Middle East and other 50Hz markets.
When operated in a combined-cycle, 2-on-1
configuration*, the next-generation GT24
turbine can deliver 700 MW of output with
60% efficiency. The GT24 also increases operating time between scheduled inspections by
more than 30%, resulting in higher availability
and lower maintenance costs. The next generation GT26 turbine delivers over 500 MW of
output with 61% efficiency when operated in a
combined-cycle, 1-on-1 configuration**, while
the GT13E2 turbine was already the top performer in its category, with efficiency of 38%
in a single cycle configuration. The latest version of the GT13E2, which recently went into
operation, delivers 200 MW of output, a 10%
increase. These three next generation turbines
give customers the flexibility they need to supplement intermittent power outputs quickly.
Thermal Power’s Research & Development
programmes are very broad. Focus areas
include upgrading and modernising plant
components (turbines, generators, boilers
and air quality control systems), inspection
technologies, control and diagnostic systems
and technologies that increase plant efficiency
and improve lifecycle management.
2/3 carbon-free energy and 1/3 coal + gas
(versus 2/3 coal + gas and 1/3 carbon-free
today): that is the diversified, low-carbon
(60g/kWh) worldwide mix recommended by
the IEA for 2050.
The Sector has used its acknowledged
expertise in these areas to win a variety of
contracts. These include modernising LPGC’s
gas-fired power plant in California and AEP’s
coal-fired power plants along the US East
Coast, upgrading the Ruwais desalination plant
in the UAE, and converting Kuwait’s Az-Zour
gas-fired plant from single to combined-cycle
operations. Modernisation and extending
the life of existing plants is another Thermal
Power speciality. The Claus C project in the
Netherlands, which involved integrating three
new GT26 turbines into an existing steam
system, was completed in 2011 and is now a
showcase for Alstom’s expertise.
*
**
Two gas turbines and one steam turbine
One gas turbine
A Dubal Aluminium plant
powered by a GT13E2
gas turbine.
Russia plans to increase the
share of nuclear in its power
generation mix to 30% by 2030.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
The Langage combined-cycle
plant in the United Kingdom
features a highly streamlined
design.
INTERVIEW - DANIEL GAGNIER
Chair, International Institute for Sustainable Development*
“Change society by helping everyone understand what companies do.”
Is it safe to say that we’re
living through an energy
revolution?
D. Gagnier: “I’d rather say we’re
living through an economic transition. It’s a dramatic one, to be
sure, but it’s going to last for
several decades. So we should
think of it not as a revolution
but as an evolution. Let’s face
it: we don’t have the means to
change it all at the same time. The
evolution will come slowly, as new
standards and new materials are
gradually adopted and renewable
resources and clean technologies
are developed. It won’t be a linear
process. We’ll make mistakes.
But ultimately, 20 or 30 years
from now, the world will have
changed dramatically.”
What does society expect?
What role can businesses play?
D. Gagnier: “Our societies are ravenous power consumers. None of
us will suddenly stop consuming
power for our domestic needs. At
the same time, societies are gradually internalising the problem
of sustainability. The question is
no longer ‘Must we change?’ but
‘Change to what?’. And their awareness doesn’t move in a straight
line. The economic crisis is having
a direct impact on them. If we
can’t offer satisfactory quality of
life today, it’s pointless to talk
about what the world will be like
in 20 years.”
D. Gagnier: “The purpose of a
business is to grow in order to
generate profits for its shareholders, but also – and this is more
and more the case – benefits for
society in general. Bringing power to
people who haven’t got it is a huge
challenge, because ideally it should
happen with minimal impact on the
environment. So we need businesses
that take an educational approach to
these issues. When they can show
the environmental benefits of their
products, customers will not only be
willing to buy them – they’ll even be
willing to pay a little more.”
* The International Institute for Sustainable
Development is a Canadian organisation that
champions sustainable development worldwide
through innovation, partnerships, research and
communications.
41
ABLE
TTAPPING INTO RENEWOM
ENERGIES WITH ofALwiST
Alstom
nd farms installed by
t
TTotal cumulative outpu
2008
2009
MW
592 MW
59
2010
60 MW
76
7
2011
MW
72 MW
87
2012*
MW
1 MW
601
1 60
247 MW
*
forecast
An ECO 100 wind turbine
in Colorado (United States).
WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
RENEWABLE
POWER
ALSTOM IS WORKING ON TOMORROW’S RENEWABLES TODAY
All our customers are eager to generate planet friendly CO2 free power and
to increase the proportion of renewables in their energy mix. We help them
reach their goal by providing technology that is as diversified as possible,
offering a multi-product approach that covers every type of renewable except
for photovoltaic energy.
Our own goal is to ensure that CO2 emission-free solutions are a major component in Alstom’s power generation offer, through organic growth of our
current business, through development of tomorrow’s new technologies
and, where appropriate, through acquisitions that create value.
At the same time, we work tirelessly to optimise our production costs
so that solar and onshore wind power (the mature intermittent energy
sources) can reach grid parity without subsidies. As we have seen in
Europe, subsidies help launch fledgling technologies but become inefficient and are reduced when new energies reach maturity. As the market gradually reaches critical size and our fixed costs and product costs
fall, we will be better able to make our customers competitive without
subsidy programmes – though subsidies are still required to develop the
renewables of tomorrow, such as the technologies of offshore wind and
tidal power.
And naturally, we continue to work on shrinking the environmental impact of
our products and facilities. To take just one example, our wind turbines (both
onshore and offshore) now leave a smaller footprint even though they are
more powerful.
Jérôme Pécresse
President, Alstom Renewable Power and Executive Vice-President of Alstom
25%
ELECTRICITY GENERATED
by renewables now totals
1,320 GW, or 25% of total
installed capacity.
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WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
PROVEN,
INNOVATIVE EXCELLENCE
FOR A BOOMING WORLDWIDE MARKET
Amid declining fossil fuel reserves, rising fuel
prices, more rigorous environmental laws and
new incentives to develop CO2-free energies, the
past decade has seen an unprecedented boom in
renewable energies worldwide.
The global market for hydro power equipment (by far the largest of these renewable
markets) slowed in financial year 2011/12
as major projects in China were postponed.
The Chinese market, outpacing Latin America
to rank as the world’s largest, accounts
for around half of worldwide investment.
Meanwhile, Europe holds strong potential for
pumped storage. As the only technology able
to store energy on a large scale, pumped storage hydro power is especially well suited for
integrating intermittent energies. And Alstom
is a specialist, delivering this technology to
over 30% of the pumped storage market.
Wind power is the second largest market
for renewable energies and sales of Alstom
equipment have remained solid despite sharp
competition. Though the market has been
dominated by Europe and the United States
in the past, emerging countries – especially
China – now account for over half of it.
Europe ranks second, followed by the United
States and Brazil, and the market should
continue to grow steadily as offshore business
expands.
New energies are expected to generate the
strongest growth. A number of projects are
underway in geothermal power, biomass,
and even solar thermal, varying with regional resources. Alstom is involved in all these
technologies, as well as the marine technologies, though they are not yet ready for commercialisation.
3 POINT STRATEGY
1. Remain the leader in hydro power by tailoring our offer to the special needs
of each market and maintaining the most competitive cost structure.
2. Expand our wind power offer, especially offshore and become a leader
in the segment.
3. Expand the “new energies” segment of our portfolio – marine (including tidal
and wave energy), geothermal, and solar thermal – and establish a presence in
promising regions.
THE MASDAR SMART CITY
PROJECT (the name means
“source” in Arabic) near Abu Dhabi
runs exclusively on renewable
energies, primarily solar power.
25 GW
MORE THAN 25 GIGAWATTS
OF PHOTOVOLTAIC POWER
were connected to the grid in
2011, with Europe accounting
for 75% of that total. A record!
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
The Bujagali hydro power plant
will double Uganda’s generation capacity.
TEN YEARS FROM NOW,
renewable energies should
account for 40-45% of
power plant output.
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WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
The fast-growing renewable energy market
generated orders totalling €2 billion for Alstom Renewable Power, a 5% increase over
the previous financial year. Well positioned
to meet the challenges of clean technologies
by closely matching each market’s special
needs, the new Sector expects to contribute
a strong share of the Group’s business after
a year spent launching new products and
consolidating manufacturing and technological resources.
HYDRO: A WORLDWIDE NETWORK
Hydro has a global network of five technology centres: the largescale testing laboratory in Grenoble, France, the specialised generator centre in Birr, Switzerland, the Pelton turbine testing centre in
Vadodara, India, the new Sorel-Tracy centre in Canada, for retrofitting existing plants and the facility in Taubaté, Brazil, which will
soon welcome a unit specialising in Kaplan turbines.
HYDRO POWER:
THE ORIGINAL GREEN
ENERGY SOURCE
In 2011/12, Renewable Power won a number
of large orders for hydro power, one of the
Group’s historic strengths, moving into new
markets and strengthening its worldwide
manufacturing base, particularly in India and
Brazil.
In Russia, the Sector signed two contracts
with RusHydro: one to modernise the
nine power plants (including one pumped
storage plant) in the cascade hydro power
complex on the Kuban River in the country’s
southern region and the other to build a joint
equipment factory in Ufa City in the Republic
of Bashkorstostan. In India, which has begun
expanding its hydro power infrastructure to
reduce its dependence on fossil fuels, Alstom
won four contracts to build new power plants.
One of the four, signed with Tehri Hydro in
Uttarakhand, is for a 1,000 MW variable
speed pumped storage plant, which will be
the first in the country. Variable speed, the
latest innovation in pumped storage, adds to
the technology’s efficiency and flexibility in
storing electricity on a large scale. In Brazil,
where Alstom holds nearly 40% market
share, Renewable Power will supply and
commission key components of the Santo
Antônio do Jari plant in the Amazon region
WAVE ENERGY
– available throughout the world –
is estimated to be capable of generating
200-300 GW of power.
and will do the same for the new 450 MW
Chaglla dam in Peru. The Sector also has a
strong presence in Turkey, which has decided
to step up power generation and to increase
the share of renewables in its energy mix.
Renewable Power will supply equipment for
power plants at two new dams, at Artvin in
the northeast and at Beyhan in the east.
The Pont Baldy
hydro power plant
in France generates
18 million kWh
annually.
Renewable Power also won contracts to retrofit
the installed base, one of the Group’s primary
business areas. Examples include key projects
in Canada, where Hydro-Quebec chose Alstom
to modernise northern Quebec’s 5,600 MW
Robert-Bourassa complex, the world’s
largest underground hydro power plant with
30 M DOWN
30 METRES BELOW THE SURFACE,
the Beluga 9 tidal turbine will operate in
powerful 9 knot currents, equivalent to
150 km/h winds.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
16 underground units, and in Sweden, where
Vattenfall Vattenkraft AB has tasked the Sector
with refurbishing and upgrading the Laxede
power plant, one of 15 located along the Lule
River in the north.
The world’s aging hydro power installed base
holds so much potential for business that
Alstom has established a new site to leverage
its experience and develop innovative new
processes. The new facility is the Sorel-Tracy
technology centre in Quebec, Alstom’s first
worldwide facility dedicated entirely to
retrofitting existing plants.
OFFSHORE WIND
ENERGY
Alstom is already the supplier to nearly 130
wind farms worldwide, including sites in
India and Japan. Pursuing its global strategy
to expand renewable energies and invest in
emerging countries, the Group is aiming for
a leading position in the wind market, both
onshore and offshore. In November 2011,
the Group inaugurated its first wind turbine
assembly facility in Bahia, Brazil. The plant will
supply ECO 86 turbines to three wind farms for
Brasventos S.A. in Rio Grande do Norte, which
will power more than 100,000 households.
Also in 2011, the 3 MW ECO 100 wind
turbine at the National Renewable Energy
Laboratory (NREL) in Boulder, Colorado
went into operation. This turbine reflects the
successful long-term strategic cooperation
agreement between Alstom and NREL.
Alstom has already built a wind farm in
Minnesota and a nacelle assembly plant in
Amarillo, Texas. Another ECO 100, the first
of seven units, was installed in Senkoy in
southern Turkey, and a group of Alstom wind
turbines went into operation in Whitelee,
Scotland – the first of 75 planned for the
expansion of Europe’s largest wind farm.
1
NO.
THE UK HAS EUROPE’S LARGEST
TIDAL ENERGY RESERVES in Europe
with 5-6 GW, followed by France
with 3 GW.
The first Haliade offshore
wind turbine, at the Carnet
site in France.
WINDFALL SAVINGS
The 2.7 MW ECO 122 turbine, the latest in Alstom’s onshore range,
sets a new standard for locations with light winds. With a swept area
of nearly 12 hectares – the most powerful in the 2-3 MW segment –
it boosts wind farm yield by 25%, reducing the number of turbines
required.
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WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
But the biggest breakthrough is expected
to come in offshore wind. To move into this
highly technical but very promising market,
Alstom developed the 6 MW Haliade 150
wind turbine, which has the longest blades in
the world. Following the French government’s
ambitious decision to increase renewable
energies to 23% of total power generation
by 2020, an EDF Energies Nouvelles-led
consortium selected the Haliade for a bid to
build five initial offshore farms totalling 3 GW.
Alstom and EDF Energies Nouvelles won the
contract for three of them and the deal will
enable the Group to build four new French
factories specialising in the manufacture of
offshore wind turbines, both for the French
market and for export. Mass production is
expected to begin in 2014.
NEW ENERGIES ARE
MAKING WAVES
With over 350 MW installed geothermal power
to its credit, Renewable Power is an established
player in the geothermal market. The same is
true of biomass: the Sector brought in two new
contracts for plants in Plainfield, Connecticut
and South Boston in the United States. In solar
thermal power, the Group’s recent investment
in the US company, BrightSource Energy Inc.
expanded its range of concentrated solar power
(CSP) solutions, which are increasingly playing
a key role in renewable power generation. The
Sector has also begun a special effort to
develop new power generation technologies
using reliable, carbon-free marine energy.
The rotor prototype
for the Beluga tidal turbine.
50%
SCOTLAND IS ON THE CUTTING EDGE
of marine energy development and plans
to generate 50% of its power with these
technologies by 2020.
20%
HYDRO POWER still supplies only
20% of Russia’s power needs,
compared with 66% from thermal
and 11% from nuclear.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
In tidal energy, Alstom is developing the
Beluga 9 – its first 1 MW tidal turbine and
the product of a cooperation agreement with
the Canadian company, Clean Current – and
will conduct preliminary tests in 2013 in
Canada’s Bay of Fundy, which has the some
of the world’s strongest currents.
The Beluga will be followed by the Orca 7,
designed for less powerful currents. Rounding out
its portfolio of marine technologies, Alstom has
also invested in wave energy by acquiring a 40%
stake in Scotland’s AWS Ocean Energy, which
has developed a wave energy generator. The
2.5 MW AWS III, a device that floats at depths of
65-150 metres, will undergo large-scale testing
beginning in 2012 and then be deployed at Costa
Head, the site that Alstom and SSE Renewables,
Scotland’s leading producer of marine energy,
plan to create in the Orkney archipelago. At
200 MW of output, the facility will be the largest
in its category.
INTERVIEW - PAAL FRISVOLD
Chairman, Bellona Europa*
“Be part of the solution.”
Why do we need to start thinking about renewable power
generation?
P. Frisvold: “Because we’re headed for
a carbon-constrained world. Little by
little, people are accepting the idea that
the future is zero emissions. For energy
specialists, this is a fascinating time.
Of course, we still have a long road
ahead. It’s true that renewable energies have grown significantly since
Kyoto, but we all need to do more.
In my view, there is no one universal
solution, and we need to have the
humility to admit that. We also need
to explain to the public that fighting
global warming doesn’t mean giving
up travel, manufacturing, eating meat
and so on…
We have the technologies. We just
need to get more people to use them.”
CANADA’S 475 hydro power
plants supply 60% of its
electricity, or 13% of annual
production worldwide.
What is the challenge for
business?
How can businesses help build
this new society?
P. Frisvold: “The challenge is to look
ahead. Businesses should already be
looking beyond 2020 to 2040.
P. Frisvold: “They can start by beginning to change their position.
For a long time, businesses have
been part of the problem. Now they
need to become part of the solution.
I don’t think NGOs or governments
are going to change the world. Businesses will.
By then, the world will have changed dramatically, because global
warming will be a reality.
The question for business is how
to stay competitive in a world that
will be radically different, with new
constraints and new opportunities.”
* The Bellona Foundation is an international
environmental NGO, founded in 1986 and based
in Oslo, Norway.
With all the technological know-how
they’ve accumulated, they are the
only ones with the legitimacy to start
and maintain the conversations that
will get us on the right paths and
help us find solutions for the future.
One of the reasons I got involved is
to convince them of that.”
49
OPTIMISING POWER TRANSMISSION
WITH ALSTOM
10 275
8 140
2009/11
2012/14
3 230
2006/08
Installed HVDC links (in MW)
W
HVDC link between Denmark
and Sweden Lindome Station, Sweden.
WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
GRID
ALSTOM DEVELOPS SOLUTIONS FOR RELIABLE, CLEAN AND
D SMART
POWER TRANSMISSION
Grid is at the forefront of today’s challenges in energy and the
environment: we are building tomorrow’s grid, the infrastructure
cture that
will link users to every kind of power source — thermal, hydro,
dro, wind
and solar. Our customers include major transmission, distribution
stribution
and renewable operators, infrastructures as well as power-intensive
-intensive
industries such as aluminium plants. Power transmission systems
ems must
be reliable and efficient and keep losses to a minimum, like the ultra high
voltage direct current links that transmit power over long distances
tances at
ever higher voltages. Transmission must also be intelligent, integrating
tegrating
intermittent energy sources without sacrificing the all-importantt balance
in the power supply and anticipating peaks in demand to avoid
oid using
ad hoc generation capacity, which often comes from non-renewable
enewable
energy sources. To meet this challenge, we need grid analysis
lysis and
management tools that optimise the relationship between supply
upply and
demand. That is the essence of smart grids.
Power transmission must also be eco-friendly and discreet, creating
the smallest possible visual and physical footprint and complying
ying with
increasingly stringent regulations. For all these reasons, it is essential
for Alstom Grid to use sustainable solutions and develop replacement
lacement
technologies. In Sweden, for example, operator, Svenska Kraftnät,
aftnät, is
constructing a high-performance HVDC link between the centre
entre and
south of the country that will provide rural areas with better power at
a comparable cost. Finally, we are working to make our installations
tallations
attractive and architecturally sophisticated – a request that more and
more Alstom customers are making – and to minimise their impact
mpact on
forests and other natural habitats. The lighter and cleaner we can make
our equipment, the less impact it will have on the environmentt and the
more competitive it will be.
Grégoire Poux-Guillaume
President, Alstom Grid and Executive Vice-President of Alstom
NEW POWER TRANSMISSION TECHNOLOGIES
using high voltage direct current (HVDC) reduce
line losses by 30% compared to conventional
alternating current.
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WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
AGENT OF CHANGE:
MOVING TRANSMISSION SYSTEMS
TOWARDS TOMORROW’S GRIDS
Increasing power generation capacity
and integrating alternative energies have
had a direct impact on the worldwide
transmission market.
Led by China, India and Brazil, major emerging
countries are adding new generation capacities. As a result, they are investing massively
to expand their existing alternating current
systems and increasingly, they are installing
direct current systems over very long distances
to support their industrial growth and deliver electricity to the greatest possible number.
Meanwhile, industrialised nations are modernising their infrastructures, which are now expected to achieve maximum reliability – especially
because they are required to use increasing
volumes of renewable energy. This in-depth
modernisation is supported by smart grid deployment and by the trend toward powerful
interregional and transcontinental super grids,
which will soon be intercontinental.
In a rapidly changing market, Alstom Grid offers
a comprehensive range of well-established products and services, backed by its technological
expertise, its capacity for innovation and its
worldwide industrial and technical presence.
MARKET-LEADING
PRODUCTS
AND SOLUTIONS
Alstom Grid provides integrated and customised
turnkey solutions for both alternating and direct
current to the entire transmission sector and is
one of the main providers of high voltage alternating current (HVAC) and ultra high voltage
alternating current (UHVAC) air- and gas-insulated electricity substations, including 765 kV units
installed in India and other key markets.
Over the medium and long term, all these factors will spur market growth, particularly for
high voltage direct current (HVDC) systems
and smart grids, driven by a triple imperative:
reliability, safety and efficiency. In 2011/12,
Alstom Grid won a number of large contracts
in the United States, Sweden and other markets, made a successful return to Iraq, consolidated its leadership position in offshore installations and other specialities and forged key
partnerships in China, Russia and the United
States, thus making major strides towards
achieving its strategic objectives. Orders now
stand at some €4 billion.
20/20/20
The European Union has pledged to reduce greenhouse
gas emissions by 20%, meet 20% of energy needs with
renewable sources and achieve an additional 20%
savings in primary energy consumption, all by 2020.
3 POINT STRATEGY
1. Maintain our competitiveness in the global smart grid market by
assisting customers with systems deployment.
2. Expand our range of long-distance HVDC transmission solutions
(super grids).
3. Increase market penetration in the conventional AC segment.
€60 BILLION
By 2020, the market potential for HVDC
technologies will reach €60 billion.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
An instrument transformer
at the Alstom site in Ludwigslust,
Germany.
ALSTOM GRID
AROUND THE WORLD
• 5 technology centres in the United
Kingdom, the United States, France
and China.
• More than 90 production,
engineering and R&D sites
worldwide, including eight in India.
• World leader in offshore electrical
substations.
• 4,000 electrical substations installed
across all continents.
• 1,000 new transformers delivered
every year.
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WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
Alstom Grid also supplies offshore wind
equipment, with self-floating, self-installing
substations now serving major wind farms off
the United Kingdom and Northern Germany.
The market’s number-one supplier of disconnectors and circuit breakers (72-1,200 kV),
Alstom Grid is also one of the leaders in gasinsulated substations and lines (GIS and GIL).
In one telling example, the Sector received
a major order from TransGrid, Australia’s
largest power transmission provider, which
had never before awarded a GIS project of
comparable scope to a single company. Alstom’s substations incorporate technical innovations that set them apart from the competition – smaller size, reduced volume of SF6
gas and a compact design in line with the
growing need for these facilities in cramped
urban environments.
Lastly, Alstom Grid is a major player and pioneer in transformer technology. Its demonstrated expertise recently led to a strategic
cooperation agreement with Chinese Electric
Power Equipment and Technology (CET)
to develop and manufacture 1,100 kV and
800 kV transformers for ultra high voltage
direct current transmission systems.
Alstom has made substantial investments to
increase plant capacity – at sites in Stafford
(United Kingdom), Rocklea (Australia)
and Saint-Jean sur Richelieu (Canada), for
example – and has set up a cutting-edge
UHVDC test unit at its facility in Canoas, Brazil.
DEPLOYING
SMART GRIDS
Digital information systems improve operating performance considerably by providing
operators with comprehensive, real-time
data on grid conditions. A key driver in the
transformation of power networks, smart
In India, all conventional electricity suppliers
MUST INTEGRATE AT LEAST 5% RENEWABLE
POWER into their total generation capacity.
A UNIQUE SELF-FLOATING SUBSTATION FOR MEG 1
The MEG 1 wind farm, 45 km north of the island of Borkum
in the German North Sea, will benefit from Alstom Grid’s
latest-generation offshore substation: entirely built on land,
with all the electro-technical components for its four transformers already installed, the platform will be towed into position,
where it will lift quasi-automatically into its operating configuration in record time. Supplied by a consortium including
Alstom Grid and its German partner, SIAG Schaaf Industrie,
the substation will connect eighty 5 MW wind turbines to the
public grid beginning in 2013.
grids are a strategic priority for Alstom,
which is firmly positioned at the forefront of
this new market. A substantial R&D budget is
dedicated to smart grid technology, with 16
demonstration projects currently in operation
around the world. Alstom Grid offers transmission and distribution operators an integrated, customised approach, based on digital equipment and software solutions. These
systems have already been successfully rolled
out for leading customers in Canada, Denmark, South Africa and France, and will soon
be deployed in Russia under an agreement
signed with FSK, the state-owned electricity
transmission firm. Alstom’s smart grid solutions are geared around two main technologies for network management and substation
automation. The first is built on Alstom Grid’s
e-terra software, the brain behind the operator’s control and command centre, managing
power generation, transmission, distribution
and sales.
Consider just one example: the renewable
energies control room at Energinet.dk in
Denmark, a country that generates more
than 30% of its energy from renewable
sources. Every day, the control room integrates this renewable input, balancing the
energy load from thermal sources with power
from wind farms. Two acquisitions have
reinforced Alstom Grid’s leadership position
in this field: Psymetrix, a network security
Ideally suited to solar projects, India receives
between 1,600 and 2,200 kWh/m2
of solar radiation per year, the equivalent
of 6 BILLION GWH OF ENERGY PER YEAR.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
specialist and UISOL, worldwide leader in
demand response applications and developer
of DRBizNet. In addition, Alstom Grid and its
US partner, S&C Electric Company, have developed an integrated smart grid solution, combining its integrated distribution management
system (IDMS) software platform with IntelliTeam SG, S&C’s automatic restoration system.
Alstom Grid and its US partner, S&C Electric Company, have developed an integrated
smart grid solution combining its integrated
distribution management system (IDMS)
software platform with IntelliTeam SG, S&C’s
automatic restoration system.
In India, where the electricity transmission
market is growing 10% annually owing to
investments in ultra high voltage systems (up
to 800 kVdc), Alstom Grid and Power Grid
Corporation of India, the country’s main operator, have signed a memorandum of understanding on joint development of a 1,200 kVac
system. In Russia, Alstom Grid and KER, a
local electrical engineering specialist, have
formed a 50/50 joint venture to design and
manufacture equipment for HVDC projects,
like the effort to connect Finland with the
line linking Vyborg, Russia to the Leningrad II
nuclear power plant (LAES-2).
The second essential technology for Alstom
smart grid solutions is automation systems
for electrical substations. A digital substation combines command systems, protection
relays and digital sensors in a single facility,
as well as providing real-time data on these
components to the control room. As part of
its strategy to develop tomorrow’s smart grid
substations, Alstom Grid is building a specialised site in Montpellier, France that will
showcase its digital technology expertise.
TRANSMISSION:
NEW SHAPE,
NEW SPEED
Countries with the largest land mass are
setting up grids operating at ever higher
voltages. In China, Alstom Grid has partnered with China Electric Power Equipment
and Technology, a subsidiary of State
Grid Corporation of China, to develop
1,100 kV direct current electricity transmission systems – a strategic agreement
that will pave the way for other major
HVDC projects, especially since Alstom has
already entered into partnership with another SGCC subsidiary.
9.8 BILLION DOLLARS
According to Pike Research, this is the amount Europe’s
smart grid market will be worth by 2017. HVDC links can
transmit three times more power than conventional high
voltage lines.
The control room
for the IFA 2000
project linking France
to the United Kingdom.
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The partners also plan to create an HVDC
engineering centre in Saint Petersburg.
Evolving toward the super grid of the future
requires efficient, reliable solutions. High
voltage direct current (HVDC) systems,
which can transmit three times more electricity than alternating current (AC) systems
over the same infrastructure, offer greater
stability and improved control, can adapt
to all voltages and frequencies, and can be
used in conjunction with AC transmission.
also interconnect the three main US electrical grids (Eastern, Western and Texas) via
the Tres Amigas SuperStation, the world’s
first energy transmission hub and the largest
smart grid project in the United States.
HVDC MaxSine™ technology will have its
first European application in Sweden, where
national grid operator, Svenska Kraftnät,
chose Alstom Grid technology for its SouthWest Link project.
For all of these reasons, HVDC is becoming
the clear technology of choice for longdistance transmission.
To enhance direct current performance,
Alstom Grid has refined its voltage source
converter (VSC) technology and in 2010,
launched HVDC MaxSine™, the ideal solution for connections between offshore wind
farms and the grid, and for multi-terminal
smart grid applications. This technology will
16%
A UHVDC transformer
for the Rio Madeira project.
of world power output never reaches end users.
HVDC LINKS offer the benefit of significantly lower
transmission losses.
ALSTOM’S SMART GRID SOLUTIONS FOR WECC
The Western Electricity Coordinating Council chose Alstom
to supply key components for the Western Interconnection
SynchroPhasor Programme (WISP), including its e-terravision
and PhasorPoint software solutions. When complete, the WISP
project will involve 18 power companies deploying over 340 phasor
measurement units and will cover nearly all of 14 states in the
western US, as well as two Canadian provinces and a portion of
Mexico’s Baja Peninsula.
$3.4 BILLION
In 2009, the US government announced a $3.4 billion
plan to develop smart grids in the United States.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
The Sector will deliver HVDC converter stations for both ends of the line, as well as all
related systems and equipment for the new
1,440 MW, 400 kV HVDC line, which will
cover southwest Sweden and will later be
interconnected with the Norwegian grid.
Connecting large-scale production directly
to renewable energies and multi-terminal
direct current networks is one of Alstom
Grid’s key R&D objectives.
Alstom Grid’s range of flexible AC transmission systems (FACTS) offers radical
improvements in reliability. These include
Alstom SVC MaxSine™ Static VAr Compensators (SVCs). Designed for offshore wind
farms and power-intensive industries, these
solutions significantly reduce disruptions in
AC power supply.
Embedded power electronics are a key element
in the evolution of long-distance AC transmission systems.
INTERVIEW - ANDRÉ SANTINI
Former Minister, Supervisory Board Chair of Société du Grand Paris,
Député and Mayor of Issy-les-Moulineaux.
“Preparing for the revolution in energy and the economy.”
What are the sustainability
challenges for a community
like Issy-les-Moulineaux?
A. Santini : “A mayor’s first responsibility is to prepare his city to
meet the challenges of tomorrow as
successfully as possible. That is why
we invested in digital technology
starting in the mid-1990s. Today,
Issy-les-Moulineaux is connected, so
we want to be in the forefront of the
new challenge – urban energy and
operational ecology, which means
ecology at every level of daily life.”
What choices has the city made
to do that?
A. Santini : “By 1991 we had already
signed an environmental charter, and
for many years Issy-les-Moulineaux
has applied a very high standard of environmental quality to the construction
of public facilities. Three years ago, we
took the next step. We began working
with construction industry professionals to ensure that our building projects
would consume less energy and
comply with stricter standards than
required by France’s Grenelle environmental law. All the stakeholders
in the sector signed the Isséo charter,
which covers all new construction
– office, residential and commercial –
anywhere in Issy-les-Moulineaux. The
charter is now being updated to look
ahead to new challenges.”
With its eco-friendly developments and IssyGrid, the town
is a green pioneer. What are
Issy’s goals?
A. Santini : “IssyGrid has
become a model well beyond
Issy-les-Moulineaux. We’re at the
beginning of a revolution in energy
and the economy. With power supply
becoming tighter and tighter, IssyGrid
represents a solution for the energy
challenges of the next few years. It
addresses the need for diversified
power generation, growing price
pressures and the emergence of
electric vehicles and other lifestyle
changes.”
57
PROMOTE SUSTTAIN
AB
LE MOBILITY WITH
Distribution of gree
ALSTOM
nhouse gas emiss
ions
in the 27 countries
of the European Un by mode of transport
ion in 2007.
Civil
aviation
12
2.5
.5
5%
%
Roads
70.9
9%
Maritime
15.3%
3%
Rail
Other
0.7%
0.6%
Citadis tramway,
Angers - France.
WITH ALSTOM, ACHIEVING RESPONSIBLE PERFORMANCE
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
TRANSPORT
ALSTOM DESIGNS RAIL TRANSPORT PRODUCTS THAT TAKE INTO
ACCOUNT A KEY ELEMENT: ENERGY EFFICIENCY
Rail is more sustainable than any other mode of transport. At Alstom, we
strive constantly to make it more efficient. One of the main areas of focus
for our trains is energy efficiency. With power consumption increasingly
taking a larger share of their budgets, our customers are paying close
attention to sustainability.
Not only are more of our customers asking us for energy diagnostics,
their sustainable development requirements are becoming more
complex. As an example, consider the specifications for the Amsterdam
metro: reduced weight, regenerative braking, less noise, a higher rate of
recyclability – plus water-soluble paints.
Customers are also sensitive to the social aspects of sustainable development, such as accessibility for the elderly and the disabled. In some
calls for tenders, especially in France, as much as 20% of our score can
depend on sustainable development criteria. This includes social, environmental and energy-related requirements, as well as health and safety.
As a result, Alstom Transport’s high scores on these criteria give us a
competitive edge.
In terms of mobility, the car has reached its limits, as measured either by
top speed, which is limited in nearly every country, or by average speed,
which is limited by congestion. Only trains can give us better mobility –
not merely because of their high capacity, but because their speed is not
limited. That’s why it isn’t unusual for people to commute on a very high
speed train, with ever increasing distances between home and work.
And mobility breeds mobility, which is why some economists are saying
that this potential is a key factor in economic growth and that the future
lies in rail.
Henri Poupart-Lafarge
President, Alstom Transport and Executive Vice-President of Alstom
EXPO
1,520
The name of the international rail industry meeting held each year
in Moscow comes from the standard track gauge in Russia and the
countries of the former Soviet Union (1,520 mm). As Finland uses
a gauge width of 1,524 mm, the Pendolino Allegro was designed
for a gauge of 1,522 mm to ensure its interoperability on the
Helsinki–Saint Petersburg line.
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RAIL TRANSPORT
AND SUSTAINABLE DEVELOPMENT
Demand for mobility is rising, spurred by
demographic growth, hyper-urbanisation,
saturated road networks and environmental
concerns – and the rail market is evolving
along with it.
The centre of gravity of the rail infrastructure
market is shifting towards China, India, Latin
America, Russia and the CIS as North America
and Europe continue to suffer from weak
growth and the financial crisis, particularly in
the Southern European countries which are
constrained by cuts in public spending.
In the face of these market conditions and rising
competition, Alstom Transport has continued to
leverage its worldwide presence and its broad
range of products and services. Orders booked
in 2011/12 totalled €6.3 million, a rise of 11%.
A number of major contracts were signed:
Euroduplex trains for France, New Pendolino
trains for Poland, Citadis tramways for the
United Kingdom, signalling solutions for
Denmark, Coradia regional trains for Sweden
and Germany, metros for Latin America and
Singapore and infrastructure for India. In
Russia, the close partnership developed with
Transmashholding (TMH) delivered its first
tangible benefits and is now expanding to
include other ambitious projects.
FROM VERY HIGH
SPEED TRAINS TO
METROS: ALSTOM’S
SPECIALITIES
Alstom holds a unique position in high and
very high speed markets worldwide, thanks
to its long experience and extensive offer.
Two key projects began commercial service
in 2011/12. In France and Germany, the
international Frankfurt-Marseille line began
operations with the Euroduplex, the only
very high speed double-decker train on the
market. In all, SNCF ordered 95 Euroduplex
third-generation Duplex trains, which will
operate on networks in France, Germany,
Switzerland and Luxembourg. Meanwhile, the
AGV.italo, whose first of 25 train sets built for
NTV, a private Italian operator, officially began
commercial service on the Venice-Rome line
and on the Turin-Salerno line running through
Rome and Naples. AGV.italo is the world’s
first fully interoperable very high speed train,
compatible with all signalling systems and all
network voltages.
TRANSFORMATIVE 3D TECHNOLOGY
Alstom’s 3D room has revolutionised the work of its engineers.
Located at Transport’s headquarters in Saint-Ouen near Paris, the
facility speeds the approval process for design, engineering and
ergonomics by enabling Alstom and its customers to see each option
as it will appear in reality.
39 countries
The population of 39 countries in Africa, Asia, Oceania
and Latin America should more than triple by 2050,
rising from 1.2 billion to 4.2 billion.
12,000 TRAMWAYS are currently in
service in Russia and Ukraine. Moscow
and Saint-Petersburg plan to upgrade
their rolling stock.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
The AGV.italo arriving at Naples station,
on its maiden voyage.
By 2015, more than 500 cities, including
300 in Asia, will have over 1 million residents.
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In the high speed (250 km/h) segment, the
Pendolino continues to sell very well in a broad
range of countries. After its success in Finland,
where the highly specialised Allegro model has
been operating on the Helsinki-Saint Petersburg line since December 2010, the Pendolino will debut in Poland, where it will run at
250 km/h on all of the country’s major lines, as
well as in Austria, the Czech Republic and Germany. Virgin Trains, operator of Britain’s West
Coast Main Line, also placed new orders with
Alstom during the financial year. A privately
held rail operator, Virgin has made its trains
and meticulous maintenance programme a
showcase for rail industry excellence.
Modular and diversified, with single and double
decker versions, Alstom’s Coradia range of
regional trains has become one of the most
reliable, effective trains in its category. Alstom
transport has sold over 600 Coradia Lint diesel
trains to the Netherlands, Denmark, and more
recently, Germany, where operator DB Regio
(Deutsche Bahn) ordered 56 for Greater Cologne
and the Eiffel region. Environmentally-friendly
and economical, these trains meet the most
rigorous European standards for emissions,
impact resistance and passive safety.
THE WORLD OF ALSTOM TRANSPORT
- 70 sites around the world.
- 11 rolling stock production centres with at least one on every
continent and 5 engineering centres in Europe.
- 6 centres of excellence for rail traffic control systems in Europe,
the United States, Canada and Brazil.
- 15 partnerships in Europe, Asia, Russia and CIS countries,
forming a solid, effective network.
And so does the Coradia Nordic, the “winterised” model for cold climates, which continues
to be very popular with Swedish operators.
To date, nearly 200 of these specialised train
sets have been sold to six different operators
in Sweden and Skånetraffiken’s latest order
brings its total fleet to 89. Meanwhile, the
next-generation Coradia Polyvalent will soon
be running in France, where 171 Regiolis train
sets have already been ordered, due to enter
into service in 2013.
.
Alstom’s Coradia
Continental at Munich
station in Germany.
70%
of the world’s rail markets require local
production and/or local partnerships.
The age of co-development has arrived.
LUCKY 13/33: the last segment of Singapore’s
Circle Line, inaugurated in October 2011, counts
13 stations and 33 km of in-tunnel track, making
it the world’s longest automated underground
metro line.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
Barcelona’s Line 2 metro,
equipped by Alstom.
Alstom Transport’s Citadis ranks among the
most popular trams in a market that is attracting a growing number of cities worldwide. To
date, nearly 1,600 train sets have been sold to
37 cities worldwide, from Bordeaux to Melbourne and from Dublin to Algiers. The city of
Nottingham (England) recently expanded its
network, adding two new lines and 22 train
sets. Five cities, including Dubai, have opted
for the aesthetically appealing Citadis with
Alstom’s APS wireless power supply system.
Bordeaux, the first of the six, already operates
74 train sets and has ordered 24 more.
In Russia, Alstom and its strategic partner,
Transmashholding (TMH), are preparing to
break new ground. After successfully producing
the EP20 and 2ES5 locomotives and developing
a new regional train (EMU) together, the
partners will move into urban transport with
Moscow and Saint Petersburg, which are eager
to develop fast, modern tram systems that can
tolerate the regional climate. Alstom and TMH
plan to set up an engineering and production
centre in Saint Petersburg.
The list of cities that have chosen Alstom’s
Metropolis is also expanding, with more than
4,000 trains sold worldwide.
STRATEGY
- Continue expanding into new geographic territory and establish a
presence in strategic markets.
- Maintain a high-level Research & Development programme and
make existing products more competitive.
- Ensure excellence in operations, with a special focus on improving the supply chain.
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Alstom Transport had previously won
contracts for the metro systems in Panama
and Santo Domingo, Dominican Republic,
and will supply the first metro for Lima, Peru
and will also carry out the new extension
of Venezuela’s Los Teques metro, itself an
extension of the Caracas metro which has
600 Alstom cars.
Alstom also makes rail systems more environmentally friendly by offering products with
lower weights, more efficient engines, regenerative braking and other energy efficient
features. Other examples include solutions
that optimise the availability of rolling stock,
such as Traintracer, a maintenance system that
reduces the downtime of train sets.
In 2013, a factory now under construction
in Chennai, India will begin producing rolling
stock for this city’s metro, later to supply the
entire Indian market.
Demand for Alstom Transport’s signalling
expertise is also increasing among operators.
For intercity lines, Alstom’s offer includes standalone products and integrated solutions that
comply with ERTMS* and PTC**, and for urban
transport, options range from traditional solutions to driverless systems such as Urbalis.
BEYOND
ROLLING STOCK
In addition to supplying rolling stock for urban and intercity rail lines, Alstom Transport
offers a comprehensive range of infrastructure
products and services. This line of business
covers designing and building new lines (like
the Chennai metro), extending and modernising existing lines, providing project management and handling maintenance for entire
rail infrastructures. Modernising track and
infrastructure allows trains to run faster and
increases line reliability.
Alstom Transport’s contract to supply the Atlas
ERTMS signalling system for the rail network
in Denmark’s East region is the Sector’s biggest to date: it will serve as a high-profile
signalling reference not only in Scandinavia,
where calls for tenders are expected in Norway
and Sweden, but in other European countries
with plans to upgrade rail equipment. Turkey’s
rail operator recently chose Alstom’s Atlas
ERTMS system for one of its lines and Atlas
will soon be a feature of Spain’s high-speed
Albacete-Alicante line.
European Rail Traffic Management System
Positive Train Control, used in the US
*
**
Worldwide, more than 60 cities have
a tramway project in hand.
THE 2ES5 DOUBLEBOGIE LOCOMOTIVE
Developed by TRtrans,
Alstom’s joint venture
with TMH, and manufactured in Novocherkassk,
the 2ES5 is an asynchronous double-bogie
freight locomotive (two
times two bogies with
two motorised axles) that
can run at 120 km/h
over very long distances
– and with 7,600 kW of
power, it can pull convoys
weighing over 6,000
tonnes. The 2ES5 will be
designed to withstand
the most extreme cold
and preheating systems
will be incorporated into
electronic components
and other sensitive
equipment.
The Urbalis signalling solution is
being used to control automated
metro systems in a number of cities,
including Lausanne.
The world rail transport market is projected to
average €103 BILLION ANNUALLY IN 20122014, with two thirds generated by business
other than rolling stock.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
Technicians working on
a Pendolino used on the
West Coast Main Line at a
Manchester maintenance depot
in the United Kingdom.
INTERVIEW - BERNARD GLEIZE
Executive Director, Ecomobility and Innovation Division, SNCF Proximités*
“ Ecomobility: a revolution in our approach to mobility. ”
Worldwide, what is the number
one challenge facing the transport
industry?
B. Gleize: “ Meeting rising demand for
mobility in ways that fully incorporate
the three key aspects of sustainable
development. Obviously the transport
industry needs to limit its environmental footprint, but we also need to build
community and make mobility accessible for as many people as possible,
both geographically and economically.
Finally, sustainability requires profitability: delivering mobility at a fair
price for individuals, businesses and
communities. Ecomobility represents
radical change – a revolution in our
approach to mobility. We’re moving
from a “transport operator” mentality
to a “mobility operator/integrator”
mentality. That is a new paradigm, and
it means that we need to offer more
than trains. Today we need to think
door-to-door and offer our clients a
whole package of sustainable mobility
solutions that fit together.”
In concrete terms, what does
ecomobility mean?
B. Gleize: “Very clearly, given the
congestion in major cities worldwide, it
means offering an attractive, credible,
competitive alternative to individual
cars and urban goods transport. There
are many challenges here: interconnecting various modes of transport,
coordinating them without creating
conflicts, and using intermodal
synergies to make travel simple and
seamless. Each mode of transport has
its own strengths. With ecomobility,
people are the centre of these mobility
systems: the passenger becomes mobile and multimodal, able to communicate and to play a role in designing
and producing his or her own mobility.
Meeting the challenge of sustainable,
door-to-door mobility also means meeting the challenges of digital mobility
and intermodality. To give people a
different experience of mobility – a
“positive client experience” – we need
to create new services that make
their commuting and travelling time
“productive and pleasant.” Beyond
that, we need to find effective solutions
to meet growing demand for urban
logistics. The goal is to take a big-
picture approach to mobility for both
people and goods, and rail transport is
a necessary - but not sufficient - part
of the mix.”
What can industry do to promote
ecomobility?
B. Gleize: “Industrial companies
should foster mobility that is increasingly eco-sustainable, and they
should make eco-design an integral
part of the entire product lifecycle.
They should also promote innovation, and to step up the pace, we
need close relationships and win/win
partnerships everywhere, between
major industrial companies like us
and innovative, responsive start-ups.
Innovation will generate mobility
offerings designed for new lifestyles,
but that means getting the entire
ecosystem involved and developing
truly innovative solutions tailored to
new ways of doing things.”
*
SNCF Proximités, a division of SNCF, provides urban,
suburban and regional mass transport services for
commuters.
65
IMPROVING OUR ENERGY
PERFORMANCE
94
91
88
86
844
833
2010
2011
94
94
75
75
2008
2009
83
2012
80
78
2013
2014
75
2015
Alstom’s energy efficie
f
ncy (expressed in MWh/million euros of
revenue) over the
last 4 years and target for 2015
Alstom Thermal Power’s manufacturing site in
Chattanooga (USA) was designed to meet
the highest environmental standards.
WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
67
ALSTOM
ECOCOMPANY
AN ACTIVELY MANAGED
ENVIRONMENTAL POLICY
Working together to protect the environment
Alstom works hard to limit its environmental impact and has set five
targets for greener operations: raise the number of ISO 14001 certified
sites, reduce greenhouse gas emissions and energy consumption,
reduce water use, limit the impact of operations on air quality and
manage waste efficiently. All these risks have been incorporated into
the Group’s environmental management system and all are measured
against quantified goals.
And because the Group is aware that the commitment and skills of its
employees are critical to its social and environmental performance, it
encourages employee initiatives and is providing employees with information and training on environmental issues. Two 2011 surveys found
that employees were actively engaged and felt a shared commitment
to continued environmental progress.
140FACILITIES,
representing 60% of the
Group’s operations, had
carried out self-assessments
at 31 March 2012.
- A network of 520 managers under the
leadership of the Group’s Environment,
Health and Safety (EHS) Department.
- A management system geared around
the EHS Roadmap, a set of criteria for
environmental management, safety,
health and risk prevention in the
workplace.
- Self-evaluations based on the EHS Roadmap and audited by in-house specialists
or outside auditors.
- A monthly report that covers more than
90% of employees working at permanent
sites.
In 2011, Alstom was listed in the
DOW JONES SUSTAINABILITY WORLD
AND EUROPE INDICES.
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
PERCENTAGE OF ALSTOM PLANTS
THAT ARE ISO 14001-CERTIFIED
With over 200 employees
FIVE TARGETS FOR
PROGRESS
In 2011, the Group’s results were in line
with its environmental targets, except for the
reduction of greenhouse gas emissions and
volatile organic compounds.
Target No. 1: earn ISO 14001 environmental
certification for all plants with more than
200 employees by 2012.
By late 2011, 83% of these plants had
earned ISO 14001 status, up from 69% in
late 2010, and many are also certified under
ISO 9001 for quality and OSHAS 18001 for
safety. Some Alstom sites in Germany have
also won certification under EMAS (EU eco
Management Audit and Scheme).
2010/11:
69 %
2011/12:
83 %
Target for end 2012:
100 %
ENERGY:
EFFICIENCY FIRST
Target No. 2: Alstom aims to reduce its energy
intensity and greenhouse gas emission
intensity by 20% by 2015. At the end of
2011, energy intensity was down 12% from
2008 levels, with a very sharp improvement
for Thermal Power and Transport. Energy
consumption fell 8% in 2011, owing in part
to the mild winter but resulting primarily
from higher energy efficiency. For example,
Alstom Renewable Power’s Tianjin site has
deployed a wide range of solutions to limit
energy consumption: solar-powered lighting,
geothermal heating, temperature-controlled offices and meters on shop floors and
in key facilities. Alstom Transport has opted
for an energy management system at its
Valenciennes site and variable speed compressors at Sesto and Salzgitter. But despite
the drop in CO2 emissions achieved through
LOWER ENERGY CONSUMPTION at
permanent sites: 1,629 GWh, versus
1,769 in 2010). This includes 651 GWh
of natural gas (822 in 2010) and
771 GWh of electricity (664 in 2010).
lower energy consumption, greenhouse
gas emission intensity is up 18% over 2008,
owing to the integration of Alstom Grid,
which operates equipment that uses sulphur
hexafluoride (SF6), a powerful greenhouse
gas. However, at constant scope of consolidation, greenhouse gas emissions were down
6% in 2011. Grid is restricting its use of SF6,
improving seal quality on affected equipment
and improving its gas-handling practices
with the goal of reducing its SF6 emissions.
LOWER CO2 EMISSIONS from energy
consumption: 520 kilotonnes CO2 equivalent
in 2010, versus 508 in 2011.
The new Alstom Hydro site in
Tianjin, China, an exemplary
plant in terms of energy
efficiency.
-3%
The annual SF6 emission
reduction target set by Alstom
Grid.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
WATER CONSUMPTION: GLOBAL STABILITY FOR WATER-STRESSED AREAS
(in m3)
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Water consumption by water-stressed areas excluding Grid
0
Water consumption by water-stressed areas - Grid
12/2008 12/2009 12/2010 12/2011
WATER: TRACKING
DOWN WASTE
Target No. 3: between 2010 and 2015, Alstom
also plans to reduce water consumption by
20% at 38 sites in regions that have been
identified by the World Resources Institute
as water-stressed. In 2011, Thermal Power,
Renewable Power and Transport reduced
their consumption by 20%. The focus has
now shifted to reducing consumption at
other sites and especially the 30 units that
consume more than 70% of the Group’s
water. In Wuhan, China, for example, Grid
saves 5,000 tonnes of water per year by
collecting rainwater to water green space
and wash roads and vehicles. Meanwhile,
Alstom Transport uses a closed-loop system
at its Villeurbanne location (France) and is
implementing a leak detection scheme at its
British sites and Alstom Renewable Power is
stepping up its water surveillance systems in
Baroda, India. These efforts helped offset integration of Alstom Grid and limit the Groupwide increase in consumption to 6%.
GREEN BUILDINGS
In March 2012, Alstom’s Chattanooga plant in the United States earned LEED Gold
certification. The buildings were constructed with recycled steel and roads were built
with concrete demolition debris. Buildings feature wide usage of natural lighting for
shop floors and in offices, heat is recycled through a centralised heating and cooling
system, exterior insulation is in place and rainwater is collected and used for irrigation.
The Chattanooga campus is accessible by public transport and has parking facilities for
bicycles and low-CO2 vehicles.
In China, Alstom’s Wuhan transformer manufacturing plant also received LEED certification and the new wind turbine assembly plant in Bahia, Brazil was built to meet the
environmental criteria of the LEED certification programme.
69
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
LIMITING EMISSIONS,
RECYCLING WASTE
Target No. 4: reduce volatile organic compound
(VOC) emissions by 10% between 2010 and
2015. To meet this goal, Alstom is using more
and more water-based paints and cleaning products instead of their VOC intensive, solventbased counterparts. Yet VOC emissions rose by
28% in 2011. The increase resulted from overall growth in operations, and particularly from
manufacture of electromechanical equipment
for hydro dams in Tianjin, China.
Alstom’s goal is to eliminate 10% of its
volatile organic compound emissions by
2015, particularly in the manufacture of
hydro power generators.
Target No. 5: the Group continues to reduce
waste production and increase recycling.
Though integrating Alstom Grid raised waste
volume by 20%, Alstom’s waste recycling rate
is still 78% overall, in line with its 2015 target
of 80%.
RAISING AWARENESS
Because environmental protection is integral
to overall performance, Alstom builds it into
employee profit-sharing agreements through
a variety of site-specific criteria. For example,
the Group’s headquarters in France assesses
paper consumption, while Alstom Grid’s site
in Aix-les-Bains takes account of SF6 emission
reductions, and Villeurbanne monitors the
number of employee suggestions relating to
the environment, health and safety.
At Villeurbanne, Alstom Grid has launched
a programme called Energy Treasure Hunts,
which uses production downtime to identify
areas where energy is wasted and to make
the plant’s operations as energy efficient as
possible. Procedures and equipment have
been re-assessed and employees have been
trained for this programme, which will be
deployed throughout France and China
starting in 2012.
RECYCLING: Alstom Transport’s
sites in the United Kingdom
have earned a Silver Award
from the National Recycling
Stars programme.
The Group also encourages employees to use
eco-friendly local transport. At Redmond in
the United States, Grid is rolling out a complete programme that includes: remote working, flexible hours and compressed work
schedules to reduce work-related travel; an
on-site cafeteria and gym for fewer trips
offsite; and a changing-room and covered
parking for employees who cycle to work.
Car-pooling is also encouraged through an
online sign-up tool and dedicated parking
spaces. A subsidy rewards use of public transport and employees who choose alternative
transport receive a bonus.
ALSTOM THERMAL POWER’S OFFICES
in Belfort are certified for High
Environmental Quality.
LOW-CONSUMPTION
BUILDINGS, solar panels and
parking for electric vehicles
are in the blueprints for Alstom
Grid’s Centre of Excellence in
Montpellier, France. The first
stone was laid in late 2011.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
EXPERT ASSESSMENT
SAM (Sustainable Asset Management), EIRIS, Vigéo, Oekom and other rating agencies evaluate Alstom’s social responsibility performance using a variety of methods and criteria.
In 2011, the Swiss-based SAM rated Alstom as “Bronze Class” for strong overall performance on sustainability criteria.
This places Alstom in the top 4% of the world’s best performing industrial engineering companies, recognising strong
overall performance on sustainability criteria, and particularly in relation to the environment.
Highest DJSI score in 2011
81
65
Lowest DJSI score in 2011
73
Alstom’s score in 2011
Alstom’s score in 2010
66
Alstom’s score in 2009
61
0
10
20
30
40
50
60
70
80
90
100
Thanks to the score achieved in 2011, Alstom is now a member of the Dow Jones Sustainability Indices
(both World and Europe).
HIGHLY MOTIVATED
In January 2011, the Group assessed stakeholder expectations by conducting a survey
of opinion leaders and an internal poll in
both developed and emerging countries. The
high response rate from Country Presidents
reflected strong interest worldwide.
The poll showed that protecting the environment is the top priority and that Alstom
needs to step up its involvement in local
development and education initiatives in
emerging countries – conclusions that will
help Alstom take the right steps to benefit
its neighbours around the world.
In November 2011, another poll went out to
60,000 employees to assess their awareness
of sustainability and social responsibility
issues, as well as their familiarity with
corporate policies in these areas. Employees
were also asked to suggest initiatives and
to indicate whether they would be willing
to participate. The results were extraordinary – a rate of return of almost 60% –
with 210,000 suggestions for initiatives and
hundreds of people volunteered to make an
active contribution to the Corporate Social
Responsibility (CSR) community.
ASBESTOS: GONE BEFORE END 2015
under reasonable, economically feasible conditions. That is Alstom’s goal. Since 2006, regularly updated instructions have
protected employees and guided surveillance. In every unit, a survey has been conducted, followed by asbestos removal
plans and cost estimates. At more than 100 sites in 40 countries, Alstom Grid has inventoried its facilities for compliance
with Group standards.
77%
OF STAFF SURVEYED
in 2011 consider sustainable development as “very
important” to set the Group apart in its markets,
but their familiarity with Alstom’s performance in
this area shows room for improvement. An action
plan has been launched, with the roll-out of an
initial awareness campaign in 2012.
71
INVESTING IN
TECHNOLOGIE TOMORROW’S
S
A robust R&D
3333
2004/05
investment st
rategy (€ mill
4440
2006/07
ions)
6 4
61
2009/10
6882
2011/12
Alstom Hydro
research centre
in Grenoble, France.
WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
73
ALSTOM
ECODESIGN
Green by design
OPTING FOR BIODEGRADABLE
OR RECYCLABLE MATERIALS.
60% of the infrastructures that will supply the world’s power in 2030
have yet to be built. And they must be based on sustainable, environment-friendly technologies. Alstom is developing solutions to meet
growing power and mass transport needs in the decades to come,
working to make these technologies cost-effective and meeting the
challenge of limiting their environmental impact.
In line with its commitment to sustainability, the Group monitors and
limits environmental impact throughout the product lifecycle, from
manufacture to recycling, and as a rule integrates eco-design principles
into new product development. Alstom is also working hard to reconcile
energy security with the need to integrate growing quantities of energy
from intermittent, CO2-free renewables.
Replacing mineral oil with biodegradable
oil, lubricating hydraulic turbines with
water, using water-soluble paints on trains
instead of solvent-based ones and replacing
epoxy resins with thermoplastic polymers in
power substations – Alstom seeks to eliminate heavy metals (hexavalent chromium,
cadmium and lead) and other hazardous
substances to the greatest extent possible,
opting for biodegradable or recyclable
materials that minimise the environmental
impact of its products and improve their
conditions of use.
ALSTOM HAS BEEN A SIGNATORY OF
UITP’S CHARTER (INTERNATIONAL
ASSOCIATION OF PUBLIC
TRANSPORT) FOR SUSTAINABLE
DEVELOPMENT SINCE 2004.
RECORD RECYCLABILITY
95% : Haliade 150 offshore wind turbine
95% : Hamburg metro
98% : Stockholm’s Coradia Lirex train
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
A STRUCTURED
APPROACH
As part of its commitment to sustainable mobility, Alstom Transport builds environmental
considerations into its products from the design
phase, evaluating their impact with Environmental Information and Management Explorer
(EIME), a software tool developed with Ademe,
France’s energy management agency.
insulated substations reflect significant progress, with the aluminium in their housings
down 36% by mass, sulphur hexafluoride (SF6)
down 13% by volume, energy loss reduced,
risk of SF6 leaks reduced, and recyclability
increased from 93% to 95%.
Alstom will be equipping
the Nant de Drance dam in
Switzerland with a new pump/
turbine system, considerably
boosting its performance.
As early as 2003, Transport began setting up its
eco-design centre in Valenciennes and in 2009,
published a new policy geared around saving
energy, using recyclable materials, reducing
noise and vibration, controlling emissions and
integrating transport systems into their surroundings.
Lifecycle analysis (LCA) is carried out for many
projects: these include Citadis, the next-generation tram-train, the DT5 metro in Hamburg,
the Regiolis train and the new metro systems
in Montreal and Amsterdam. Alstom Transport
also assists customers with carbon footprint
studies, recyclability evaluations and environmental product declarations.
Thermal and Renewable Power also conduct
LCAs on certain products – gas turbines and
the Haliade 150 offshore wind turbine, for
example. Alstom Grid has defined an ecodesign roadmap based on the IEC 62430 standard, quantifying the environmental impact
of Grid products with SimaPro software and
confirming the results with LCA. Each Grid
solution is assessed based on seven criteria
covering every phase of its lifecycle: production (consumption of natural resources), use
(energy efficiency, CO2 emissions, environmental risks, noise pollution and product footprint)
and end of life (recyclability).
PUSHING RECYCLABILITY TO THE LIMIT
With their easily recyclable materials (aluminium, steel, copper) as
well as bolts and rivets to simplify disassembly, Alstom’s Metropolis
metro cars and Citadis trams are themselves at least 85% recyclable.
Alstom Transport is continuing to research the use of natural materials
like wood, hemp and wool for insulation and sound proofing and is
working with its partners in the Finather project to develop innovative
thermosetting composites with low environmental impact.
New solutions must present significant advantages over previous products for at least one of
the seven criteria and must be at least equivalent for the others. Alstom’s most recent gas-
THE FOOTPRINT
of a TGV line running Duplex trains
is 14 metres, versus 40 metres for a
2x3 lane motorway handling the same
number of passengers.
403 METRES
of track were laid by Appitrack in a
single day to reduce inconvenience
during tramway construction in
Orleans, France.
ALSTOM’S APS
ground-level power supply
solution was chosen for systems
in Bordeaux, Angers, Orleans,
Reims and Tours in France and
for Dubai in the UAE.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
PRESERVING QUALITY
OF LIFE
Alstom places special emphasis on integrating power and transport facilities into their
surroundings, whether natural or urban.
Examples include the Langage power plant
in the UK, which was designed to blend harmoniously into Dartmoor Natural Park. In
transport, Alstom has developed systems without overhead wires, such as the ground-level
APS (for alimentation par le sol ) power supply
solution for trams in cities such as Bordeaux
and Angers, and on-board batteries to circulate in protected cityscapes in Nice. Finally,
the Group’s Appitrack automatic track-laying
method reduces impacts from construction of
metro and tramway systems.
TGVs (shown above, a TGV
Duplex) now operate at
higher speeds than their
predecessors, without any
increase in noise levels.
3-5 DB REDUCTIONS
in noise levels are achieved
with next-generation trains.
Reducing noise pollution is another priority. In
30 years, TGVs have doubled in speed but their
noise level has remained unchanged, thanks to
aero-acoustic modelling, streamlined contours
for leading bogies, and changes to TGV nose
design that help trains move more smoothly
through the air. Low-noise wheels and noiseabsorbing skirts for the AGV and Pendolino
trains, the Citadis Dualis tram-train and the
Prima locomotive have also helped make
Alstom transport solutions quieter. The Group
is working to reduce vibration levels by laying
elastomer base plates under the cross ties of
the new Paris-London line.
75
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
The first next-generation GT24
gas turbine, manufactured at the
Chattanooga site (USA), offers
enhanced operational flexibility.
THANKS TO THE FIRST PARTICULATE
FILTER FOR DIESEL TRAINS,
the Coradia Lint operating in the
Frankfurt area emits 95% less soot.
ALSTOM JOINED JOHANNESBURG’S
“WITS” UNIVERSITY in late 2011 to
inaugurate a Chair for clean power
generation and power transmission
technologies.
450 MW
EXTRA IN LESS THAN
10 MINUTES.
That’s what operators get with
the next-generation GT24 gas-fired
turbine. The new GT26 delivers
350 MW in 15 minutes.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
MORE FLEXIBLE
THERMAL PLANTS
To help integrate ever more massive quantities of intermittent solar and wind energy
– without compromising grid reliability –
Alstom is making gas-fired power plants
more flexible and responsive. With nextgeneration GT24, GT26 and GT13E2 turbines,
operators have reserves that can be activated in less than 15 minutes to compensate
for variable intermittent energies (wind and
solar) and they can use Alstom’s new range
of automation and control solutions to coordinate asset management and match power
output to network demand.
Hydraulic pumped storage power plants – one
of Alstom’s specialities – are the only way to
store electricity on a grand scale and help to
secure the electricity supply. Finally, new solutions being studied include solar tower plants.
INTERVIEW - NARAYAN PANT
Strategy consultant and professor at INSEAD business school*
“Businesses are at a tipping point.”
How can we make sustainability
an integral part of innovation
strategies?
N. Pant: “We live in a changing
world and rising sustainability
concerns are making it even more
complex. At the centre of this
complexity, businesses are at a
tipping point between two models.
For them, the biggest challenge is
to manage today’s constraints even
as they try to look ahead to tomorrow’s. So their question on innovation is ‘How do we become the new
standard setter – or at least stay
ahead of our competitors – without
jeopardising our current business
model?’ That’s the whole point of
making sustainability an integral part
of innovation strategies.”
THE NEW GT13E2
GAS-FIRED TURBINE
can operate at half load.
Do you think the markets are
ready to take the plunge?
What can businesses do to
change that?
N. Pant: “Customers are the only
ones who can decide. Ultimately,
they’re the ones who will approve –
or reject – the decisions and actions
taken by business, and their attitude
toward sustainable innovations can
be ambivalent. Often they will praise
the advances companies make,
but refuse to pay more for them.
Yet these are the same people who
say that they don’t want to leave a
blighted world to their children…”
N. Pant: “I don’t think businesses
should try to save the world. It’s not
their responsibility. But in addition to
developing new technological solutions, they can use their tremendous
strengths to start the conversations
that will move society forward. They
have the expertise, they know what’s
at stake and what the impact of each
choice would be. As a result, they are
in the best position to help us take a
collective look at key sustainability
issues. If businesses rise to this
challenge, it will have a powerful
impact.”
* INSEAD is one of the world’s premier-ranking
business schools.
77
CARBON CAPTURE WITH ALSTOM
18 pilot or demonstration units worldwide
5
11
2
Alstom’s research centre
in Växjö, Sweden.
WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
79
ALSTOM
ECOSOLUTIONS
Sustainable solutions
All over the world, operators are facing tighter environmental regulations.
From design to maintenance to renovation, Alstom supports customers
by meeting two goals: improving performance and reducing environmental impact.
Alstom’s power generation solutions are less carbon-intensive, rendering new and existing plants more efficient and giving a larger role to
renewable energies and technologies that eliminate or sharply reduce
atmospheric pollution from sulphur dioxides, nitrogen oxides, particulates and mercury.
For power grids, progress means optimising infrastructures and boosting
efficiency with high voltage and ultra high voltage direct current technologies. Alstom is also a pioneer in developing smart grids, which optimise
integration of decentralised power output, largely from renewables, and
manage power supply and demand with maximum efficiency.
CO2 EMISSIONS FROM HUMAN ACTIVITIES
WORLDWIDE IN 2010.
Residential, excluding
electricity: 6%
Other (businesses, public
services, farming, forestry,
fishing): 10%
Electricity
and heat:
41%
Industry: 20%
Transport (including
0.5% for rail): 23%
And in the rail transport sector, Alstom is developing solutions that reduce power consumption.
IMPROVING EFFICIENCY OF COALFIRED POWER PLANTS FROM 30% TO
40% would reduce their CO2 emissions
by 24%.
Source: IEA
230,000 TONNES
OF CO2 AVOIDED
each year by the 50 MW
geothermal power plant in Puebla,
Mexico.
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
POWER GENERATION:
MORE EFFICIENCY
Alstom offers customers every kind of
renewable energy except photovoltaic –
hydro power, onshore and offshore wind,
concentrated solar power, biomass and geothermal – delivering a broad range of solutions that help reduce environmental impact.
At the same time, Alstom is cutting emissions from coal and gas-fired power plants
– the source of 60% of the world’s electricity
and 40% of its CO2 emissions – by making
them more energy-efficient. Greater efficiency enables operators to produce the same
amount of power with less fossil fuel and a
corresponding reduction in CO2 emissions.
With the latest versions of Alstom’s GT13E2,
GT24 and GT26 turbines, gas-fired power
plants are generating more energy. The GT26
produces up to 61% more for a combinedcycle gas-fired plant, saving 350,000 tonnes
in CO2 emissions annually.
In addition to renovation solutions that make
current power facilities 5-10% more efficient,
Alstom is developing very high temperature
coal-fired power plants that are more efficient
and produce less pollution. In Germany, for
example, Niederaussem’s supercritical power
plant delivers 43% net efficiency, compared
with an average of 35% for today’s traditional plants, and the RDK 8 ultra-supercritical
plant will exceed 46%. In 2011/12, Alstom
won several contracts for supercritical units
in Tanjung Bin and Manjung, Malaysia, in
Rybnick, Poland, and in Kusile, South Africa.
In 2011/12, Alstom also strengthened its
positions in systems that reduce emissions of
sulphur oxides, nitrogen oxides and particulates, winning major contracts in the United
States of America, Saudi Arabia, the United
Arab Emirates, Taiwan and India.
CARBON CAPTURE:
SCALING UP
With its partners, Alstom has completed or
is currently completing installation of 18 pilot
and demonstration units designed to capture
and store carbon from coal and gas-fired
power plants.
According to the International Energy Agency,
carbon capture and storage (CCS) could meet
20% of required reductions in CO2 emissions
between now and 2050.
Alstom is concentrating on two processes:
solvent-based post-combustion technology
that captures CO2 using advanced amines or
chilled ammonia and oxy-combustion.
In 2011/12, the Group launched projects in
the United Kingdom, with Drax Power and
BOC to test a 426 MW demonstration unit,
as well as in China, with China Datang Corporation, and Romania.
Another promising avenue is co-firing of coal
and biomass, which is avoiding 2 million
tonnes of CO2 emissions annually at the
4,000 MW Drax power plant in Yorkshire, in
the United Kingdom.
POST-COMBUSTION SOLUTIONS.
Air quality control systems eliminate up
to 99% of SO2 emissions, up to 95% of NOx
and more than 99.75% of particulates
from gas and coal-fired power plants.
OVER 90% OF THE MERCURY
emitted by gas and coal-fired power
plants can be eliminated with KNX,
Filsorption and MerCure technologies.
THE CCS DEMONSTRATION UNIT
at the Mountaineer coal-fired plant
has captured 75-90% of its CO2 and
separated it from combustion gases.
CO2 purity exceeds 99%.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
EFFICIENCY: THE BOTTOM LINE
To measure the CO2 reductions achieved with its technology solutions, Alstom uses a method reviewed by
PricewaterhouseCoopers. Analysis of 1,323 power generation projects, commissioned between 2002 and 2010, showed
that 189 million tonnes of CO2 emissions had been avoided.
Millions t eq. CO2/year
At the end of 2010, 68% of the cumulative reductions (130 million tonnes annually) had been achieved in developing and
emerging countries, making Alstom the leading supplier of ambitious, economically viable carbon reduction solutions.
Starting in 2002, Alstom’s thermal projects reduced emissions by 121 million tonnes, and renewable projects account for a
growing share of reductions, rising from 31% at the end of 2006 to 36% at the end of 2010. During the same period, reductions from maintaining existing power plants and improving their energy efficiency also increased, rising from a 3% share in
2002 to a 7% share in 2010.
8
19
32
37
42
59
73
85
1
2
27
54
65
72
83
88
93
102
115
2002
2003
2004
2005
2006
2007
2008
2009
2010
Alstom Renewable Power
Alstom Thermal Power
Projects commissioned from 2002
to 2010: cumulative reduction in
annual CO2 emissions in millions
of tonnes of CO2 equivalent
Detail of a carbon
capture system
installed by Alstom at the EDF
power plant in Le Havre.
A PARTNER IN EUROPE’S GREEN
eMOTION PROGRAMME for electric
vehicle development, Alstom is
contributing expertise in smart
grid integration and direct current
technologies.
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
SMART GRIDS…
Today’s electrical grids must simultaneously
meet rising demand for safe, reliable electricity, adapt to fluctuating consumption, and
integrate a growing share of power from
intermittent wind and solar sources. In addition, grids are expected to reduce CO2 emissions and other environmental impacts and
become smarter, more efficient and more
flexible so that utilities can manage assets as
close to their limits as possible. To meet these
challenges, networks are being transformed
into smart grids that circulate real-time data
among producers, grid managers and end
consumers – some of whom may also be energy producers. Smart grid technology also integrates power from positive energy buildings
and other new, decentralised resources.
Alstom is a leading player in the smart grid
market with an integrated approach and
solutions featuring key technologies in power
electronics, integrated systems for managing
distribution, digital transformers and control
room information technology. In late 2011,
Alstom’s real-time grid-monitoring solutions
were chosen for the Western Interconnection
SynchroPhasor Programme (WISP), which
will involve 18 utilities covering 14 US states,
two Canadian provinces and part of Mexico’s
Baja California peninsula. In partnership with
government, industry and grid managers,
Alstom is participating in 16 demonstration
projects, including the North Carolina and
Pacific Northwest smart grids in the United
States, the Fenix and Twenties projects in
Europe, and the NiceGrid and IssyGrid “smart
district” projects in France.
Alstom’s grid management R&D centre,
in Massy (Paris region).
ALSTOM IS A PARTICIPANT IN THE
MEDGRID PROJECT, aimed at linking
Europe to North Africa. The Group also
supports the Mediterranean Solar Plan.
€210m,
including €72m in funding from the
French government, is earmarked for
the SuperGrid project, coordinated
by Alstom and spearheaded by the
Institute for Excellence in Carbon-Free
Energy (IEED).
OFFSHORE WIND FARMS
TOTALLING 2 GW are linked
to onshore grids by Alstom.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
83
… AND SUPER GRIDS
In the future, super grids will link power
networks from country to country and
continent to continent, reducing losses, optimising asset use, resolving conflicts between
different frequencies and integrating
renewable energy sources in remote locations. Super grids use high voltage and ultra
high voltage direct current (HVDC) technology – an area where Alstom is a recognised
expert. In 2011/12, Alstom’s HVDC solutions
were selected by Svenska Krafnät in Sweden,
by ATCO Electric in Canada, and by Tres
Amigas for its SuperStation, which will link
the three primary transmission grids in the
United States. Alstom has also signed two
cooperation agreements: one with Russian
contractor Ker for HVDC projects and the
other with China Electric Power Equipment
and Technology for ultra high voltage direct
current systems (1,100 kV).
A PIONEER
IN CONNECTING
OFFSHORE WIND
FARMS
HVDC lines have another advantage: they are
submersible. A pioneer in connecting offshore
wind farms to grids onshore, Alstom designed
and built the first substations off the coasts
of Germany and the United Kingdom and
developed the HVDC MaxSine voltage source
converter, the most efficient solution for transmitting offshore wind energy to onshore grids
via direct current. Alstom has also designed
self-floating substations to connect offshore
assets to networks on land and in 2011/12,
won contracts to supply substations for the
Meerwind, EnBW Baltic 2, Borkum West II
and Nordsee Offshore MEG 1 wind farms in
Germany.
ENERGY CONSUMPTION AND MASS
ARE DOWN 10-15% in Alstom’s high
speed trains, metros and regional trains
compared with previous generations.
Finally, Alstom was also chosen to maintain
Germany’s Alpha Ventus wind farm and the
Robbin Riggs farm in the UK.
Grid connection for an offshore wind
farm in the Baltic Sea.
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WITH ALSTOM, SHAPING A MORE SUSTAINABLE WORLD
SUSTAINABLE,
HIGH-PERFORMANCE
TRANSPORT
Of all forms of motorised travel, rail transport
is the most eco-friendly, with the lowest energy consumption, the smallest footprint and
the highest efficiency in terms of passenger
and freight capacity. In Europe, for example,
rail handles 7% of passenger traffic and 10%
of freight, yet accounts for less than 2% of
the transport sector’s C02 emissions including
emissions for rail electricity.
To make rail systems even more environmentally-friendly, Alstom optimises their energy
consumption by reducing train weight, making
traction systems and auxiliary equipment more
efficient, and recovering braking energy.
Alstom’s AGV very high speed train takes full
advantage of these solutions, with lighter
metal components, an outer skin only 2.5 mm
thick and bogie-to-car connecting bars made
of composite materials. In addition, up to
8 MW of power can be recovered and returned
to the grid with Alstom’s braking solutions.
Alstom Transport is also developing new systems, including the reversible Hesop substation, which returns tram braking energy to the
grid. And as part of the STEEM project with
the Paris regional transport authority, Alstom
Transport has developed supercapacitors that
store braking energy, allowing trams to run
without catenaries between stations.
As the market leader for permanent magnet
motors – which are lighter, more compact
and more efficient – Alstom deploys them in
AGVs, regional trains, tram-trains and trams.
The Group is also developing hybrid engine
systems that combine a thermal engine with
a battery, halving the energy consumption of
shunting locomotives.
The Hesop system recovers tram
braking energy and returns it to
the grid.
THE AGV™
CONSUMES the equivalent of 0.4 litres
of fuel per 100 passenger km, i.e. 5
times less than an airplane (based on
primary energy needs).
THE CITADIS DUALIS TRAM-TRAIN
CONSUMES 3 times less energy than a
bus and 4 times less energy than a car,
measured in kWh per passenger.
THE HESOP braking energy
recovery system was
recognised in the French
Environment Ministry’s
Business and Environment
awards.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
Alstom delivered the first of five hybrid
locomotives to MEG, a subsidiary of DB
Schenker Rail.
Efficiency is also important in heating
and ventilation for Regiolis, MI09 and the
Singapore metro: managing these systems
can reduce their energy consumption by
30% outside rush hour. And for lighting, LED
technology is becoming the norm.
THE AMSTERDAM METROPOLIS
- At 116 m x 3 m, the trainsets are king-sized but
lightweight, with an aluminium body that reduces axle
load to 12 tonnes.
- The braking system is 100% electric and can bring the
Metropolis to a complete stop, with energy recovery.
- Lighting is 100% LED.
- Reduced energy consumption.
- Greater accessibility and less noise improve passenger
comfort.
- “Clean” materials include water-based paints.
INTERVIEW - PAUL SIMPSON
CEO, Carbon Disclosure Project*
“ Businesses could cut CO2 emissions by one-third
with existing technologies.”
How do you view the business
community’s efforts to reduce
CO2 emissions?
P. Simpson: “I see some real leaders emerging: highly innovative
companies that have made sustainability an integral part of their
strategy and have already reduced
their CO2 emissions considerably.
It’s also worth noting that the vast
majority of companies are now
heading in this direction and their
investments (though still fairly
scattershot) should start paying off
soon.”
Which sectors are on the
cutting edge?
What are the major challenges
for the next few years?
P. Simpson: “In my view, the electric
utility sector is one of the most effective in reducing CO2 emissions. This is
surely because they are often national
companies and highly regulated.
Other, more internationally-oriented
sectors still have significant room for
improvement, however. Mass-market
brands are often doing a very good
job because they know that their
customers are aware of these issues
and are likely to consider them when
they make a purchase.”
P. Simpson: “To make a carbonfree economy a reality, we need to
step up investments in renewable
energies and technology. Businesses
could cut emissions by a third if they
adopted all of the existing technologies now. In the energy sector, we
need to promote renewable solutions
and especially solar, which is becoming more and more competitive.
At international level, what we need
now is a protocol that will pick up
where Kyoto leaves off.”
* An NGO that helps businesses reduce their carbon
footprint and water consumption.
DRIVERS OF NEW TRAINS like Alstom’s
Regiolis have real-time access to energyconsumption data and can adjust their
driving habits for optimum efficiency.
85
COMMITTED TO SUSTTAINABLE DEVELO
PMENT
WITH ALSTOM
100
77
Employees who believe that the Group’s
sustainability effor
f t is important: [77%]
42
Employees who want to be involved in
the sustainability initiative: [42%]
Results of a 2011 survey on employee
involvement in the Group’s sustainable
development initiative
An Alstom technician
on the Itaipu dam in Brazil.
WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
LIFE
AT WORK
It’s all about people
The quality and competitiveness of the solutions and services Alstom
delivers to its customers are a direct result of the excellence and motivation of its employees. They are the key to success, and Alstom invests in
them from the moment they are recruited until the end of their careers.
Safety for employees and for outside contractors is the number one priority and the Group is strengthening programmes to prevent and eliminate serious accidents at all its sites worldwide.
AN ACTIVE HR POLICY
As a high-tech company, Alstom emphasises skill-building and training
(through Alstom University in particular) to meet employees’ expectations and improve their performance. Alstom also promotes mobility, a
key component of career satisfaction, and uses new information technologies to encourage employees to share expertise and best practices.
- “It’s all about people”: employee-oriented
policies and mandatory HR procedures.
To motivate employees and earn their loyalty, Alstom cultivates an attractive
working environment and develops compensation policies that recognise
individual and group achievements. With a presence on every continent,
the Group views diversity as a powerful tool for performance, recruitment
and innovation. That means promoting equal opportunities, regardless of
gender and ethnic or cultural origin, and hiring people with disabilities.
Finally, Alstom responds to changing market conditions by fostering workforce-management dialogue at both local and regional level.
- A network of 880 managers under
the leadership of the Group’s Human
Resources (HR) Department.
- A Group-wide information system (HRIS),
deployed at Alstom Grid since April 2011.
- A management system to prevent
workplace accidents, based on the EHS
Roadmap.
- A dashboard of indicators derived from the
Group’s HRIS and a survey of employees
in the 21 countries representing 87% of
Alstom’s workforce.
- 30 health and safety indicators, monitored
monthly as part of the Group’s dashboard.
92,600
EMPLOYEES
58% in Europe (70% in 2006)
22% in Asia-Pacific (11% in 2006)
17% in the Americas (18% in 2006)
3% in Africa and the Middle East
(1% in 2006).
OVER 9,900 PERMANENT
HIRES and 8,000 temporary
hires in 2011/12.
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WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
PRIORITY NO. 1:
WORKPLACE SAFETY
Alstom makes the safety and health of both employees and outside contractors its number one
priority. Alstom has reduced its injury frequency
rate1 from 2.8 in March 2009 to 1.8 in March
2012, in line with its Zero Severe Injury programme, which seeks to bring the rate below 1
by 2015. But even one serious or fatal accident,
whether it affects employees or contractors, is
one too many, and the Group is now making
high-risk activities and increased compliance
with accident prevention its safety priority. In
November 2011, the Executive Committee
approved a Fatality Prevention plan designed to prevent serious accidents using three
measures: in-depth analysis and close monitoring by Sector Presidents of actions taken, strict
compliance with the Ten Fundamental Rules of
Safety and increased supervision of contractors that are required to know and comply with
Group standards. This plan focuses on the main
causes of serious accidents: working at height,
lifting operations and electrical work and will be
accompanied by awareness-raising campaigns
and training, such as the EHS International
Passport programme, which requires a refresher session every three years.
1
Number of accidents with time lost due to injury per
million hours worked.
NEW OPPORTUNITIES FOR SENIOR EMPLOYEES
A 2012 agreement signed in France promotes active employment up to retirement by focusing on mentoring and
skills transfer. In Switzerland, 50-year-old employees are invited to a retirement planning seminar that gives them
financial and legal information, and at age 57, they can attend a “57 Plus” seminar on end-of-career and retirement issues, including health and social services.
BETTER WORKLIFE,
STRONGER
MOTIVATION
Local programmes focus on improving workplace
health and well-being. In India, where key sites
include a dispensary, the Group has launched
a health campaign: a dedicated portal provides
information on nutrition and preventing waterborne and other diseases; employees have anonymous access to analysis of their medical data
and treatment plans; and the Group negotiates
favourable rates with healthcare providers. In
Germany, employees with professional or personal issues can consult a psychologist or call a hotline, and in Turkey, a psychologist provides confidential support to workers who have conflicts
with their managers.
THE 4 GOALS OF THE ZERO
SEVERE INJURY PROGRAMME:
develop a culture of safety, update
self-assessment criteria, improve
the analysis of severe accidents,
managed specific risks of contractors.
ALSTOM COLLABORATIVE WAY (ACW)
2009/10
2011/12
54 h (11 sites)
77 h (21 sites)
1,100 web meetings
3,400 participants
54,614 web meetings
223,951 participants
21 docspaces
25,000 visits
per day
48 docspaces
20,000 visits
per day
Wikis
75
89
Blogs
7
7
Telepresence: average hours per
month per site
Web conferencing
Document management
systems
Alstom uses the ACW programme to foster the growth of social networks that allow employees to exchange knowhow and best practices. Its goals are to strengthen cooperation between entities, encourage transfer of best practices
and innovation and help new employees become part of the Alstom team.
STANDARDISED WORLDWIDE, ALSTOM’S
INTERNATIONAL EHS PASSPORT
is recognised by the United Kingdom’s
National Examination Board in
Occupational Safety and Health.
LIFE INSURANCE
- 99% of Alstom employees covered
by a life insurance in case of accidental death (97% in 2008).
- 94% covered by life insurance
giving one year of salary (72% in
2008).
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
CAREER
DEVELOPMENT:
SUCCESS AND
SATISFACTION
Alstom maintains an active career management policy that offers employees the best
opportunities for professional and personal
growth.
PERCENTAGE OF WOMEN
By region in 2011
30
25
20
20%
19%
19%
Asia/Pacific
North America
17%
16%
Latin America
Africa &
Middle East
15
10
5
0
The Alstom Connection programme helps new
employees settle in by familiarising them with
the Group and helping them begin to build a
network, and Group resources are rounded out
with local schemes. India’s Young Engineers
Graduate (YEG) programme, which focuses on
behaviours rather than technical skills, organises workdays in villages and orphanages to
support the Alstom Foundation’s projects.
During their annual evaluations, employees
work with managers to set individual goals and
to map out a personal career development plan.
The Group has stepped up training for the
managers who conduct these evaluations and
Alstom University has designed a new module.
People Reviews, which match unit needs to
employee skills, help employees structure their
careers with the Group perspective in mind.
This programme is being rolled out Groupwide, with a steadily increasing number of
managers participating.
Alstom Wind employees
hold an EHS meeting at the Haliade
wind turbine assembly plant in SaintNazaire, France.
ALL 400 OF ALSTOM’S EMPLOYEES IN CHILE
received bicycles as an incentive to exercise and
practise ecomobility.
Europe
E
89
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WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
FROM MOBILITY
TO PERFORMANCE
ALSTOM GRID 2011: 4 PATHS TO PROGRESS
Employee satisfaction surveys provide regular input on making
Alstom a better place to work. 63% of Alstom Grid employees responded to an opinion survey conducted in June 2011 and results
show that their perceptions of the Group and its commitments to
labour and social progress are very positive. Four paths to progress
were identified: strengthen the culture of quality, encourage direct
communication between management and teams, improve the
employees’ perception of the Group’s competitive image and develop and recognise individual talent. A worldwide action plan has
been launched, with indicators to monitor its progress.
Alstom is a high-tech company that manages
complex, long-term projects. The calibre of its
employees, their skills and their commitment
are key to its competitiveness.
The Group fosters internal mobility through
monthly forums, its JobsOnline e-recruitment
site, and local schemes that focus on managerial skills and internal mobility.
In China, programmes for managers (MAP)
and technicians (PAP) were launched in 2011:
half of the participants have now been promoted. Local successes like this one inspired
the Accelerated Management Programme, a
Group-wide scheme.
Other initiatives for employees include Poland’s Generation Exchange & Successor
Development programme, which focuses on
replacing the skills of retiring employees.
ZERO TOLERANCE
FOR DISCRIMINATION
Alstom strives to promote diversity and
equal opportunities in all aspects of its
business.
Because Alstom specialises
in predominantly male fields, it helps
women move up the ladder by giving them
special attention during People Reviews
by providing management and leadership
training for women. The Group also supports in Switzerland, Women Adding Value
to Engineering, an internal network of 170
women engineers in 20 countries and the
launch of the Women Empowerment for
Business programme. Among its many
other initiatives are harassment prevention and positive discrimination schemes,
work/life balance programmes and awareness campaigns. Four agreements signed
47%
of engineers and managers
in the Group.
in France provide benefits that include special
work schedules for pregnant women and
those returning from maternity leave, paid
paternity leave and support for single parents.
The Group also supports the EVE women’s
leadership programme and NGOs that support
women’s causes, including the French groups
Déployons nos Elles and Elles bougent.
132
YOUNG ENGINEERS
RECRUITED IN INDIA
thanks to the YEG induction
programme.
Alstom plans to increase
the number of women in
its workforce
(Soto de Ribeira power
plant, Spain).
39,000
ANNUAL PERFORMANCE
INTERVIEWS
(23,000 IN 2008)
- 33,000 People Reviews
(15,000 in 2008).
- 85% internal promotion rate for the
Group’s 1,570 senior executives
(60% in 2008).
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
Providing job opportunities for people from
disadvantaged districts is another focus area.
In 2012, Alstom signed a French agreement on
hiring candidates from underprivileged areas:
under the agreement, the Group’s La Courneuve site will recruit 20 individuals and host 25
apprentices and 15 interns between now and
2014. In Mazatlan, Mexico, 15 young people
with no qualifications attended an apprenticeship programme.
22% of Alstom employees
work in the Asia-Pacific
region (Ling Ao nuclear
power plant, China).
At Alstom, discrimination based on health or
disability is strictly prohibited. The Group complies with local laws on hiring and retaining
employees with disability. HR managers are
trained to prepare appropriate job interviews
and to help employees with disability settle in.
REWARDING
EMPLOYEES
Information-sharing, sound compensation policies and employee share ownership schemes
help motivate employees and foster a sense of
belonging. In addition to receiving updates on
Group and Sector news, employees are invited
to participate in programmes like Alstom’s Innovation Awards, which judges projects based
on two criteria: “It’s new” and “It works.” In
2011, the programme attracted 1,154 participants from 22 countries.
Compensation for managers includes variable components tied to individual goals
and Group performance: at 31 March 2012,
more than 25,000 employees qualified for this
programme. Collective performance is also
rewarded under a profit-sharing system in 13
countries.
AVAILABLE IN 8 LANGUAGES, WITH
100 VIDEOS ONLINE AND MORE THAN
30,000 VISITS: Alstom University Tube
encourages the exchange of ideas and
experiences between employees.
ALSTOM UNIVERSITY: OVER 8,200 EMPLOYEES TRAINED
Nearly three-quarters of Alstom’s staff have benefited from
training, notably at the specialised centres operated by the various
Sectors or at Alstom University, which currently offers 80 training courses. Alstom University organised 630 classroom-based
training sessions and 3,000 e-learning sessions in 2011. Having
already achieved ISO 9001 certification for its main campus in
France, Alstom University extended the scope of this certification
during the year to its regional campuses in Switzerland, India,
China, Brazil and the United States of America, while the Project
Management Institute certified its “Project and Contract Management” programme. The winner of a Best Practice Award in
the “Alliances” category at Corporate University Xchange’s 12th
Annual Awards for Excellence and Innovation, Alstom University
was also named “Best New Corporate University” by this
international corporate training research and consulting firm.
91
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WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
CONTINUING
DIALOGUE
Locally, Alstom has entered into many union
agreements on working hours, employee
share ownership, compensation, reorganisations and medical care. At European level,
the Group maintains a dialogue with the
European Works Forum. Recent talks have
focused primarily on adapting the Group’s labour force to its workload and structuring the
Information Systems and Technology (IS&T)
department under “Anticipating Change”,
a February 2011 agreement with the European Metalworker’s Federation (EMF).
The agreement uses national best practices within the Group (such as workforce and competency planning in France, temporary worktime
reduction in Germany and geographic mobility
in Italy) to preserve jobs, accompany the redeployment of employees and increase employee
competencies. The agreement is also used
to structure the dialogue within the Group at
European, national and local levels.
Starting from the principle that nobody is left
to cope alone with an employment problem,
the Group works hard to reduce the impact of
reorganisations on its workforce through redundancy plans. Some of these plans are governed
by the EMF agreement.
• In Italy, a local agreement was signed on
31 August 2011, under the European agreement which created a redundancy plan mitigating the loss of 280 positions in Colleferro,
Guidonia, Bologna and Savigliano by offering
internal transfers, early retirement, voluntary
redundancy and reduced working hours.
• In Salzgitter, Germany, an initial plan to restore profitability called for structural cost reductions and productivity enhancement measures
equivalent to the elimination of 700 jobs. After
negotiations and an agreement signed with the
works council and local union in July 2011, that
number was reduced by revising the plan to include voluntary redundancies, early retirements,
internal mobility, flexible working hours and
variable compensation tied to productivity.
• In Barcelona, Spain, a redundancy plan involving 400 jobs was set up under a union agreement which included early retirements, reductions in working hours and internal transfers.
• In Switzerland, a reorganisation affecting 760
positions was announced in October 2010. A
redundancy plan negotiated with the works
council opened the door to extended notice
periods subject to certain conditions, financial
outplacement support, early retirements, qualification for new positions and support for mobility. Two outplacement units were set up: they
counselled some 200 people and found outplacement solutions for 170 of them.
37,000
INNOVATION AWARDS:
399 ENTRIES
(up 60% over 2010)
- 41 projects selected
- 13 finalists from six different countries
- 4 categories: Innovative Processes,
Innovative Systems and Products, Green
Innovation and Small But Smart.
Two employees confer
at Alstom Transport’s plant
in Katowice, Poland.
A LOYALTY BONUS is paid to managers
in India and China who meet their
targets and are still with the Group
after three years.
EMPLOYEES PARTICIPATE
in profit-sharing programmes.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
• In Lapa, Brazil, where 150 positions needed
to be cut, a union agreement provided for a
redundancy plan involving reduced working
hours, voluntary separations and four- to
five-month training programmes to enhance
qualifications.
preparing for the closure for two years,
solutions were offered to all employees, including retirement and outplacement.
In Ottawa, Thermal Power lost 50 positions:
30 people were reassigned within the Group.
• In Calgary (Canada), a workshop closed
in August 2011, resulting in the loss of 50
positions. However, as the Group had been
INTERVIEW - NICOLE NOTAT
Chairwoman, Vigeo*
“ Increasing corporate social responsibility
is an unexpected consequence of globalisation.”
What are the major social
responsibility challenges facing
global companies today?
N. Notat: “Multinational companies
were the first to be exposed to CSR
issues. Originally they were challenged to respond to climate change
and dwindling natural resources
and now they are facing questions
on how they create and redistribute
wealth in each of the countries
where they do business. Today, they
are required to take a position on
the labour standards they will apply
at each site and on the inequality
in working conditions and pay from
one country to the next. Now, the
expectation is not only that they will
not follow the lowest standards but,
in fact, will help raise them.”
That being the case, what
kind of relationships should a
company cultivate with its local
ecosystem?
N. Notat: “A multinational has a responsibility wherever it does business,
directly or indirectly, and that means
being held accountable for its local behaviour. Without local subcontractors,
it no longer exists. Today, a company
cannot achieve its goals by working
under conditions that conflict with the
interests of its local stakeholders.”
You are uniquely positioned to
observe companies. How do you
view the changes in their commitment to social responsibility?
N. Notat: “The trend curve is
clearly rising. Today, I encounter
companies which understand the
need to provide concrete, verifiable
information on how they are living
out their commitment to social responsibility. For them, CSR concepts
are not just rhetoric anymore —
they are strategic priorities.
1.45% OF ALSTOM’S CAPITAL was held by current
and former employees at 31 March 2012, either
directly or through mutual funds.
While we are on this subject, I have
to say that European companies
tend to be among the good guys,
and that French companies, in
particular, have nothing to apologise
for. Very early on, France required
companies to publish a sustainable
development report and I believe
that once they were obligated to
report on CSR, they felt obligated to
practice CSR. So they chose to act.
For some of them, their published
material now reflects a genuine
commitment, not just an exercise in
public relations.”
* Vigeo is Europe’s leading expert in analysing, rating,
auditing and providing consulting to organisations
as regards their practices and performance on
environmental, social and governance (“ESG”) issues.
93
SHARING V
VALUES WITH ALSTOM
8,5000
8,
8,50
44,50
4,
,50
500
1 50
1,
5000
2009/10
2010/11
2011/12
Comanche power plant
(United States).
WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
SHARING
ETHICS AND
RESPONSIBILITIES
Group-wide commitment
Alstom employees are united around three shared values: trust, team
and action.
At Alstom, business development is grounded in a culture of integrity
and transparency – and in ethical principles that permeate the Group’s
strategy, procedures, working methods and relationships with stakeholders. Alstom is a member of the United Nations Global Compact and the
Group deploys in all its businesses an Integrity Programme, which was
certified in 2011 by ETHIC Intelligence. The Alstom Integrity Programme
is based on Alstom’s Code of Ethics which is distributed to all employees.
Compliance with ethical principles and sustainability criteria also guide
purchasing and selection of the suppliers that are fully part of the Group’s
growth.
ALSTOM’S CODE OF ETHICS
was updated in 2010 and is
available in 21 languages.
GLOBAL COMPACT
Alstom is a member of the
Working Group on AntiCorruption and the Expert
Group on Responsible
Business in Conflict-Affected
and High-Risk Areas.
THE E-ETHICS MODULE
on the Code of Ethics has
been deployed at Alstom Grid
and translated into eight
languages.
95
96
WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
A COMMITMENT
TO BUSINESS ETHICS
When ETHIC Intelligence certified the Alstom
Integrity Programme in 2011, it was a
testament to the Group’s continual efforts to
strengthen its ethics rules and to ensure that
all employees share its culture of integrity.
Implemented under the supervision of the
Ethics & Compliance (E&C) Department, the
Alstom Integrity programme is based on the
Group’s Code of Ethics, which applies to all
employees, and an instruction related to
business ethics.
The Code of Ethics provides the rules for relationships with business partners and suppliers,
Alstom’s commitments to socially responsible
business practices, human resources policies,
and protection of Group assets.
Alstom is a member of the Global Compact
Working Group on Anti-Corruption, the Ethics
and Compliance Officer Association in the
United States, the Institute of Business Ethics
in the United Kingdom and the International
Chamber of Commerce in France.
At a local level, the Group sponsors the Ethos
Institute in Brazil, the Center for Business
Ethics and Corporate Governance in Russia
and the Chair in Business and Law Ethics at
the University of Cergy-Pontoise in France.
Created in 2007, the Chair brings researchers
and business professionals together and prepares students for a Master’s degree.
It contains an alert procedure that employees
may use to report any violation of Alstom’s
rules on ethics, especially concerning competition law, corruption prevention or securities
and accounting laws and regulations.
First graduating class from
the Business Law and Ethics
programme at the University
of Cergy-Pontoise, sponsored
by Alstom.
Strict instructions govern relationships with
business advisors, resellers and consulting
companies, as well as conflicts of interest, gifts
and hospitality, political and charitable contributions and sponsorship.
Training courses are part of the programme
and information is disseminated through a
broad range of channels, including a special
section of Alstom’s Intranet, posters and
articles in the Group’s weekly newsletter.
Another key component of Alstom’s commitment to ethics is its community of 250
E&C Ambassadors. The Country Presidents
and representatives of the Legal, Finance
and HR departments who volunteer to serve
as E&C Ambassadors promote the culture of
integrity and relay ethics questions to the
E&C Department.
OVER 40,000 EMPLOYEES
have completed the Group’s
e-learning programme in Ethics and
Compliance since 2006, and 7,200
more have been trained in person.
1ST CLASS
OF STUDENTS SPONSORED BY ALSTOM
HAS RECEIVED MASTER’S DEGREE
in Business Law and Ethics from the
University of Cergy-Pontoise.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
THE ETHICS, COMPLIANCE AND SUSTAINABILITY COMMITTEE
COMPLETES ITS FIRST YEAR OF FULL OPERATION
The EC&S Committee met four times during the financial year. The Committee approved structuring
the Group’s CSR programmes around three core principles: building relationships of trust with stakeholders to ensure that Alstom’s offer is acceptable, offering products and services that create environmental value and make CSR a unifying element for all employees of the Group, thereby promoting a
sense of belonging and pride in the company. The Committee also called for regular reports on efforts
to prevent severe accidents and recommended that the Group identify key risks associated with sustainable development, clarify its policies favouring communities and diversity and make more use of
its environmental management system. The Committee was informed of three certifications awarded
by ETHIC Intelligence during the financial year and reviewed and approved the new organisation of
the Ethics & Compliance Department. It submitted a report on its work to the Board of Directors.
A business ethics campaign
raised employee awareness
in 2011.
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98
RESPECT
FOR HUMAN RIGHTS
As a member of the United Nations Global
Compact, Alstom complies with the Universal
Declaration of Human Rights and with International Labour Organisation conventions.
Respect for human rights is among the criteria
reviewed by the Group’s Risk Committee when
assessing projects and a charter with suppliers
and contractors requires that they respect
human rights as well. Finally, Alstom conducts
an annual survey to ensure that there are no
incidents of exploitation of children, forced
labour, violation of freedom of association, or
discrimination of any kind.
RESPONSIBLE PURCHASING: 8,500 SUSTAINABLE
DEVELOPMENT CHARTERS HAVE BEEN SIGNED
BY SUPPLIERS AND SUBCONTRACTORS.
2009/10
2010/11
2011/12
Amount of purchase in € million
11,800
12,400
11,600
Number of Charters signed
1,500
4,500
8,500
Number of suppliers assessed
492
850
1,225
Number of people trained through
specific programmes
89
300
680
RESPONSIBLE
SOURCING
Alstom seeks to foster long-term ties involving suppliers and contractors in its growth
strategy, in line with a responsible sourcing
approach.
Alstom has identified the environmental, social
and ethical risks associated with its suppliers
and contractors and has set up a Charter for
Sustainable Development. By signing the
charter, suppliers who sign the Charter agree
to comply with the major conventions of the
International Labour Organisation and the
OECD, particularly with respect to child labour,
health, safety, environment and business
ethics.
A risk map covering 6,500 suppliers – 80% of
Group procurement – helps to prioritise the
evaluation process.
Suppliers that do not comply with the Charter’s standards must take corrective action:
Alstom works with them to identify the necessary steps and then conducts a second evaluation. To help sourcing people and qualiticians
understand the Group’s priorities, use the
evaluation tools and help suppliers with their
improvement plans, Alstom has developed a
specialised training programme. Employees
also have access to online training.
Alstom also works with a specialised provider
to evaluate the environmental, social and ethical practices of main suppliers and contractors,
including the requirements they impose on
their own suppliers.
60%
PURCHASING
of Group sales.
150 EMPLOYEES IN INDIA
AND CHINA have been trained
in responsible sourcing.
ONLINE TRAINING
FOR BUYERS
is available in 7 languages.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
Maintenance operations
at Algeria’s Marsat
power plant.
INTERVIEW - ALEJO SISON
Executive Committee President, European Business Ethics Network*
“Ready to sacrifice part of our profit to improve our ethical profile.”
What progress have large
companies made in taking
ethical principles on board?
A. Sison: “Large companies have
made a lot of progress over the past
few years. It’s true that, because of
their size, they attract more attention and come under more pressure
than other companies. For them,
the real question today is this: are
we ready to sacrifice part of our
short-term profit to improve our
ethical profile? It seems to me that
many big companies have already
answered this question with a yes.”
What are the major ethical
challenges facing them today?
A. Sison: “There are two types of
challenge. First, we should note that
over the past few years, legislatures
have made a lot of progress towards
motivating companies to take new
ethical requirements on board. The
most obvious example is the DoddFrank reform in the United States
which aims to increase supervision of
the financial sector. Adapting to these
new laws is the first challenge facing
companies today. But we should
also remember that companies
have worked very hard on this and
many have created Ethics Manager
positions. The challenge now is to
educate and train everyone in the
company: executives, employees, all
the company’s stakeholders need to
be more aware of ethical issues. The
rules and charters that companies
have developed are necessary but
they are only the first step. To make
real headway against corruption
and conflicts of interest, nothing can
replace training people. That is how
companies will succeed in fostering a
genuine culture of ethics.”
* A European network of executives dedicated to
promoting ethics in business.
99
ITIES WITH ALSTOM
WORK FOR COMMUN
1
11
1
13
13
9
19
1
2008/09
2009/10
2010/11
7
17
2011/12
ndation
ded by the Alstom Fou
Number of projects fun
The Alstom Foundation
lends its support to salt farmers
in the Indian state of Gujarat.
WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
ALSTOM
LIFE
TOGETHER
Committed to communities
Wherever Alstom operates, it forges ties with local partners, cultivates
close relationships with its customers built on trust and engages in efforts to support communities. The Group joins initiatives that promote
innovation and competitiveness and lends assistance to start-ups specialising in energy efficiency, renewable energies and sustainable mobility.
Worldwide, employees are encouraged to join development initiatives in
partnership with local associations and communities.
These long-term outreach initiatives reflect Alstom’s openness to society
and its commitment to promoting responsible growth that combines
economic and social progress, preserves each region’s natural and cultural heritage and considers the needs of local communities living near
Group facilities and project sites.
Since its creation at the end of 2007, the Alstom Foundation has backed
these efforts by providing technical and financial support to some 60 community service projects championed by Group employees and carried out
in partnership with local organisations and associations. The Foundation
also provides emergency aid to communities, living near Alstom sites,
who are struck by natural and industrial disasters.
60 PROJECTS WERE FUNDED
by the Alstom Foundation
from 2009 to 2008.
€30 MILLION COMMITTED
TO THE ASTER II CAPITAL FUND
UNTIL 2022.
Aster II supports start-ups
specialising in eco-friendly
energy, materials and chemicals.
101
102
WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
CLOSE TO
CUSTOMERS
Alstom builds close customer relationships
based on trust. Customer opinion is solicited
through satisfaction surveys, followed by corrective action as needed.
In Alstom Grid, Strategic Key Account Management programmes also contribute to customer satisfaction, using in-depth dialogue and
customised action plans to anticipate needs
and meet them more effectively.
Innovation programmes and R&D are guided
by working groups made up of customers
and Alstom experts and organised around
specific products and technologies. Meetings,
seminars and events with a more technical
focus – such as the Power Sector’s Clean
Power Days– encourage dialogue between
technical associations and customers.
A VOICE IN THE
SUSTAINABILITY
DEBATE
Alstom contributes to the sustainability debate
within national and international organisations,
stressing the need for pro-active public policy
to encourage innovation and non-polluting
technology, promote access to electricity for all,
encourage fair competition and open trade and
expand long-term investment policies.
The Group is also active in many international
and European organisations, including the UN
Global Compact, the World Business Council
for Sustainable Development, the International
Association of Public Transport, the International
Emissions Trading Association, The Climate
Group, the Corporate Leaders Group on Climate
Change and the EU Corporate Leaders Group
on Climate Change. In 2011, Alstom joined
Comité 21, a French network of public and
private stakeholders.
Alstom Grid also supports customers through
its Technical Institute and its 16 centres, which
delivered 13,000 days of training in 2011.
CONTRIBUTIONS TO INTERNATIONAL SUSTAINABILITY PROGRAMMES
Low-carbon technologies – Alstom is a participant in Europe’s carbon capture and storage (CCS) demonstration projects
and in the New Entrants Reserve programme (NER 300) for industrial deployment of innovative CCS, offshore wind
and smart grid technologies (€4 billion). Working with several partners, the Group has submitted proposals and it is also
involved in the International Energy Agency’s programmes including the Greenhouse Gas programme and the Clean Coal
Center and in the US Department of Energy (DOE) programmes.
Smart grids – Alstom Grid contributes to Europe’s Twenties project, focusing particularly on developing direct
current power transmission technologies that can link wind power and other renewable energy sources to a future
European network.
Energy storage – Alstom offers advanced solutions based on hydro power (pumped storage variable speed turbines) and
smart energy management solutions and Group experts participate in conferences and other events.
Smart cities – The European Union supports the development of eco-friendly communities that combine renewable
energy, positive-energy buildings and eco-friendly mobility solutions. Alstom and its partners, Bouygues and Embix, will
participate in the smart cities demonstration programme launched in 2012 by the European Commission.
MORE THAN 480 CUSTOMERS
responded to the 2011
satisfaction survey for the two
Power Sectors. Customers are
also surveyed at the end of
most projects.
ASTER II GLOBAL VENTURE CAPITAL
FUND
- 4 partners: Alstom, Rhodia-Solvay,
Schneider Electric and, since 2012, the
European Investment Fund.
- 4 investments in Europe and in the
United States.
18 COMPANIES
INTERNATIONAL SME PACT:
18 French companies have been
supported by Alstom since 2009.
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
HELPING INNOVATIVE
COMPANIES GROW
Alstom cultivates partnerships with start-ups
offering new materials, components, concepts
and solutions that contribute to sustainable
development and are compatible with its markets and products. The Group also invests in
innovative companies through venture capital
funds like Emertec 4, which backs 15 startups in energy efficiency, renewable energies,
environmental protection and mobility. It has
also committed €30 million through 2022 to
the Aster II Fund, which focuses on start-ups
specialising in eco-friendly power generation
and transmission, materials and chemicals. In
addition, Alstom has partnered with high-tech
specialists Rotem Industries, Ltd. and Gefen
Biomed Investments to create Horizon, a joint
venture that finances innovative companies
that focus on renewable energies and energy
efficiency.
AN ACTIVE ROLE IN SUSTAINABLE DEVELOPMENT
Areas where employees want to get involved
Environmental protection: 32%
Active support for the CSR team: 10%
Community volunteering: 12%
Education & awareness: 16%
Other: 30%
The Group also contributed to the Third National Eco-Enterprise Forum, held in Paris, which
fosters relationships between big companies
and innovative small ones, and in 2009 it signed the International SME Pact, proposed by
the French government to support innovative
small and medium-sized businesses at international level. Alstom advises these businesses
on export strategy, connects them with its
local partners and customers and offers them
the use of its premises.
In France, Group engineers contribute to
the work of eight of the country’s competitiveness clusters: onboard systems ([email protected]
tic), transport systems of the future (I-Trans),
new textiles (Up-Tex), microtechnology, new
energies (Tenerrdis), nuclear pole, renewable
energies, and power electronics. In Belgium,
Alstom chairs the Board of Directors for the
“Logistics in Wallonia” cluster.
TOMORROW’S TRANSPORT
Working with RATP, the Paris transport authority,
Alstom created Metrolab, a research laboratory
dedicated to designing tomorrow’s automated metro.
The Group has also joined Deutsche Bahn and
12 industrial companies and research centres in
supporting the ECO-rail Innovation project, which
seeks to reduce rail sector emissions to zero by 2050.
Transport’s site in Tarbes, France is participating
in a research programme on onboard systems as part
of the Aerospace Valley competitiveness cluster.
103
104
WITH ALSTOM, BUILDING A MORE HUMAN WORLD, TOGETHER
60 PROJECTS FUNDED
BY THE FOUNDATION
Alstom works with local associations to make
life better for neighbouring communities, participating in charitable causes, supporting
health and education initiatives and backing
cultural and sporting events. Group employees
around the world are encouraged to take part.
The Group gives special attention to education
projects that help the jobless find work.
The Alstom Foundation supplements and
coordinates these efforts by financing social
and environmental initiatives. Each project is
championed by Group employees and developed in partnership with local stakeholders.
9 ECO-SCHOOLS
have been created in South Africa
with support from the Alstom
Foundation.
The Alstom Foundation supports
a bamboo replantation project in
Indonesia.
With an annual budget of €1 million, the
Foundation has financed 60 projects since its
creation in 2007. Five of the 17 projects chosen in 2011 focused on combining economic
development with environmental protection.
These included eco-tourism at El Mirador Park
in Guatemala, technologies to reduce water
consumption by micro-power plants in India,
waste recovery in Brazil, support for refuse collector cooperatives and a recycling awareness
campaign in Argentina and development of a
recycling infrastructure in Egypt.
THE 2,000 VILLAGERS IN N’SEKE (DRC)
now have access to drinking water,
thanks to a joint project with the NGO,
Objectif Ô.
ALSTOM
FOUNDATION
50,000 TREES have already been
replanted in Rio Turvo State Park
(Brazil).
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
The Foundation was also involved in seven
other projects that placed more emphasis
on social issues: setting up irrigation and
rainwater harvesting structures in Bargarh,
India; building 15 rainwater tanks in Bali,
Indonesia; renovating a park in Santiago,
Chile as well as a school and a children centre
in Argentina; planting forests in the Dominican Republic; installing solar panels for 50
Bedouin in Israel’s Negev Desert and renovating a community kitchen for women living
alone in Mexico.
Education and environmental awareness are
also priority issues for the Foundation: in 2011,
it provided eco-friendly stoves to 300 families in
Bhutan and worked to protect Malaysian coral
reefs for the fourth year in a row. Two other projects promoted conservation by building wells
and planting trees in Mali and restoring Brazil’s
Atlantic forest for the third consecutive year.
INTERVIEW - CARLOS MANUEL RODRIGUEZ
Vice President for Conservation Policy, Conservation International*
“Helping to transform our economies ”
What are the key issues in
today’s interactions between
multinational companies and
the communities where they do
business?
CM Rodriguez: “The first priority is
to help make local economies more
sustainable. For the moment, that
is obviously not the case. Nor is it
true of our production methods and
consumption habits, which need
radical transformation. Success
hinges on two premises. First, we
have to make a technological leap.
With support from our partners, we
can do that. Second, we need to
make the leap in such a way that it
creates jobs. This is non-negotiable:
moving towards a more sustainable
economy is meaningless unless it
benefits society. Failing that, we’ll
never convince anyone that these
issues are important or that things
need to change.”
SINCE 2008,
THE ALSTOM FOUNDATION
has supported projects in 32 countries.
What role can multinationals
play in this process of change?
CM Rodriguez: “In my view, the
transformation will not succeed
unless they throw themselves into
it, ‘body and soul’, with a thorough
understanding of local needs. If they
do, their experience and innovation will be enough to expand and
amplify the change now under way.
On the ground, companies should
take steps to help make production
methods, behaviours and national
policies more sustainable. That,
I think, would be a very valuable
contribution towards transforming
our economies.”
What about civil society?
CM Rodriguez: “Creating countrylevel partnerships is another essential
contribution that multinationals
must make partnerships with other
businesses, organisations and all of the
stakeholders in civil society, including
NGOs, the scientific community
and academia. I believe that these
connections and the communication
that grows out of them are extremely
productive. When they are based on
the perception of a common interest,
they very quickly generate new ideas
and projects that make tangible
changes to society.”
* Conservation International is an NGO specialising
in the protection of flora, fauna and the
environment. Founded in 1987, CI is active in some
thirty countries over four continents.
105
106
FINANCIAL RESULTS
CONSOLIDATED INCOME STATEMENT
FINANCIAL YEAR ENDED 31 MARCH (IN € MILLION)
2012
2011
19,934
20,923
(16,144)
(16,938)
Research and development expenses
(682)
(703)
Selling expenses
(900)
(902)
Administrative expenses
(802)
(810)
INCOME FROM OPERATIONS
1,406
1,570
Other income
3
46
Other expense
(337)
(852)
EARNINGS BEFORE INTEREST AND TAXES
1,072
764
Financial income
55
57
Financial expense
(232)
(193)
PRE-TAX INCOME
895
628
Income tax charge
(179)
(141)
Share of net profit attributable to equity-accounted investments
28
3
NET PROFIT
744
490
0
0
- Equity holders of the parent
732
462
- Non controlling interests
12
28
- Basic earnings per share
2.49
1.57
- Diluted earnings per share
2.46
1.56
SALES
Cost of sales
Attributable to:
NET PROFIT PER SHARE (€)
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 107
CONSOLIDATED BALANCE SHEET
FINANCIAL YEAR ENDED 31 MARCH (IN € MILLION)
2012
2011
Goodwill
5,483
5,396
Intangible assets
1,921
1,934
Property, plant and equipment
2,852
2,651
Associates and non consolidated investments
531
207
Other non-current assets
545
567
Deferred taxes
1,472
1,287
TOTAL NON-CURRENT ASSETS
12,804
12,042
Inventories
3,138
3,363
Construction contracts in progress, assets
3,752
2,479
Trade receivables
5,692
6,053
Other current operating assets
3,557
2,945
13
50
Cash and cash equivalents
2,091
2,701
TOTAL CURRENT ASSETS
18,243
17,591
TOTAL ASSETS
31,047
29,633
4,327
4,060
107
92
4,434
4,152
804
1,095
Accrued pension and other employee benefits
1,417
1,145
Non-current borrowings
3,863
3,346
Non-current obligations under finance leases
477
491
Deferred taxes
176
88
TOTAL NON-CURRENT LIABILITIES
6,737
6,165
Current provisions
1,414
1,387
Current borrowings
634
578
Current obligations under finance leases
48
51
Construction contracts in progress, liabilities
9,508
9,166
Trade payables
4,080
4,071
Other current operating liabilities
4,192
4,063
TOTAL CURRENT LIABILITIES
19,876
19,316
TOTAL EQUITY AND LIABILITIES
31,047
29,633
ASSETS
Marketable securities and other current financial assets
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent
Non-controlling interests
TOTAL EQUITY
Non-current provisions
108
CONSOLIDATED STATEMENT OF CASH FLOWS
FINANCIAL YEAR ENDED 31 MARCH (IN € MILLION)
2012
2011
NET PROFIT
744
490
Depreciation, amortisation and expense arising from share-based payments
621
671
Post-employment and other long-term defined employee benefits
(61)
(150)
1
70
Share in net profit attributable to equity-accounted investments
(net of dividends received)
(27)
0
Deferred taxes charged to income statement
(94)
(107)
NET CASH PROVIDED BY OPERATING ACTIVITIES - BEFORE CHANGES IN
WORKING CAPITAL
1,184
974
CHANGES IN WORKING CAPITAL
(968)
(743)
NET CASH PROVIDED BY OPERATING ACTIVITIES
216
231
Proceeds from disposals of tangible and intangible assets
24
44
(813)
(791)
Increase/(decrease) in other non-current assets and liabilities
15
(1)
Acquisition of Grid (€- 2,323 million) net of cash acquired (€328 million)
28
(2,023)
Acquisitions of businesses, net of cash acquired
(93)
(242)
Disposals of businesses, net of net cash sold
(73)
(68)
NET CASH USED IN INVESTING ACTIVITIES
(912)
(3,081)
(1)
9
(206)
(378)
Issuance of bonds and notes
560
1,500
Changes in current and non-current borrowings
13
33
Changes in obligations under finance leases
(42)
(41)
Changes in marketable securities and other current financial assets and liabilities
(237)
57
87
1,180
NET DECREASE IN CASH AND CASH EQUIVALENTS
(609)
(1,670)
Cash and cash equivalents at the beginning of the period
2,701
4,351
0
24
(1)
(4)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
2,091
2,701
Income tax paid
(264)
(248)
Net of interest received and paid
(170)
(107)
Net (gains)/losses on disposals of assets
Capital expenditure (including capitalised R&D costs)
Capital increase/(decrease)
Dividends paid, including payments to non controlling interests
NET CASH PROVIDED BY FINANCING ACTIVITIES
Net effect of exchange rate variations
Other changes
ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT / 109
ANALYSIS OF CHANGE IN NET CASH POSITION
FINANCIAL YEAR ENDED 31 MARCH (IN € MILLION)
2012
2011
(609)
(1,670)
237
(57)
Changes in bonds and notes
(560)
(1,500)
Changes in current and non-current borrowings
(13)
(33)
42
41
(303)
(289)
Decrease/(increase) in net debt
(1,206)
(3,508)
NET CASH/(NET DEBT) AT THE END OF THE PERIOD
(2,492)
(1,286)
ANALYSIS OF THE CHANGE IN NET CASH/(NET DEBT) (*)
Changes in cash and cash equivalents
Changes in marketable securities and other current financial assets and liabilities
Changes in obligations under finance leases
Net debt of acquired entities at acquisition date
(*) Net cash/(net debt) is defined as cash and cash equivalents, marketable securities and other current financial assets and non-current financial assets
directly associated with liabilities included in financial debt, less financial debt.
CONTACTS
ALSTOM
3 avenue André-Malraux
92309 Levallois-Perret Cedex
Immeuble Sextant
France
Tel.: +33 (0)1 41 49 20 00
www.alstom.com
ALSTOM THERMAL POWER
Brown Boveri Strasse 7
CH-5401 Baden
Switzerland
Tel.: +41 (0) 56 205 77 33
www.alstom.com/power
ALSTOM RENEWABLE POWER
4 avenue André-Malraux
92309 Levallois-Perret Cedex
Immeuble Octant
France
Tel.: +33 (0)1 41 49 20 00
www.alstom.com/power
ALSTOM TRANSPORT
48 rue Albert Dhalenne
93482 Saint-Ouen Cedex
France
Tel.: +33 (0)1 57 06 90 00
www.alstom.com/transport
ALSTOM GRID
Immeuble Galilée
Quartier Michelet-La Défense 10
France
Tel.: +33 (0)1 49 01 61 00
www.alstom.com/grid
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ALSTOM
3 avenue André-Malraux
92309 Levallois-Perret Cedex
France
Tel.: +33 (0)1 41 49 20 00
www.alstom.com
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