SSE PLC ANNUAL REPORT 2020
ABOUT THIS REPORT
SSE plc is a UK-listed energy company and this Annual Report 2020 comprises a Strategic Report, a Directors' Report and Financial Statements for the year ended 31 March 2020. In so far as possible, it also seeks to address trends and factors that could affect the future development, performance and position of SSE's businesses.
This includes taking account of events between
31 March 2020 and 16 June 2020, the date on which the Board of Directors approved this report. That period was dominated by the coronavirus emergency and the Board recognised on 16 June that it was difficult to forecast with accuracy the full extent of the pandemic's human, social, economic and business impact.
AT A GLANCE
Sale of SSE Energy Services page 17
Operating profit AdjustedEarnings per share Adjusted
SSE completed the sale of its GB household energy supply business.
£1,488.4m
83.6p
Reported
Reported
Progress in offshore wind page 19
£963.4m
40.6p
SSE was successful in UK auctions for offshore wind capacity contracts.
Dividend
Recommended full-year dividendEBITDA Adjusted
A commitment to decarbonisation page 21
80p
£2,191.4m
SSE adopted a new target to cut carbon intensity of electricity by 60% by 2030.
Alternative Performance MeasuresEconomic contribution
UK
£7.7bn
Ireland
€650m
SSE assesses the performance of the Group using a variety of performance measures. These measures are not all defined under IFRS and are therefore termed "non-GAAP" measures. A reconciliation from these non-GAAP measures to the nearest prepared measure in accordance with IFRS is presented on pages 164 to 169 . The alternative performance measures SSE uses might not be directly comparable with similarly titled measures used by other companies.
The SSE plc Annual Report 2020 is complemented by SSE's Sustainability Report 2020 and Risk Report 2020, which can be found online at sse.com .
online at sse.com/annualreport2020
in other SSE publications
within another section of this report
Non-Financial Information statement
SSE welcomes focus from regulators, shareholders and other stakeholders on its non-financial performance and recognises that the non-financial reporting requirements of the Companies Act 2006 necessitates transparent disclosure of non-financial information. SSE seeks to disclose information in an open and accessible manner. The table below signals where detailed disclosure on non-financial information can be found within SSE's Annual Report 2020, in addition to the non-financial information embedded throughout the document. Further disclosure can also be found in SSE's Sustainability Report 2020 .
Reporting requirement and SSE's material areas of impactRelevant Group Principal Risks, pages 28 to 36
Environmental matters
• Managing climate-related issues
• Delivering net zero
• Wider environmental performanceClimate Change
Safety and the Environment
Employees
• Health and Safety
• Training and learning
• Inclusion and diversity
• Reward
• Employee voice
• Culture and ethics
• Support during the coronavirus crisisPeople and Culture
Safety and the Environment
Social matters
• Contributing to the economy
• Responsible approach to tax
• Sharing value with communities
• Advocating for a just transition in the green recoveryPeople and Culture
Speed of Change
Energy Affordability
Human rights, anti-corruption and anti-bribery
• Reinforcing an ethical business culture
• Prevention of financial crime and corruption
• Approach to human rights and modern slaveryPeople and Culture
Large Capital Projects QualityRelevant Group Policies on sse.com
Policy embedding, due diligence, outcomes and key performance indicatorsGroup Climate Change Policy
Group Environment PolicyAligning business and social objectives, pages 74 and 75
Taking climate action, pages 82 to 85
Safety, Health and Environment Advisory Committee Report, pages 132 to 135
Group Employment Policy
Group Safety and Health PolicyAligning business and social objectives, pages 74 and 75
Committing to decent work, pages 78 to 81
Group Sustainability Policy
Group Taxation Policy
Group Procurement PolicyAligning business and social objectives, pages 74 and 75
Fulfilling SSE's social contract, pages 76 and 77
Group Human Rights Policy
Group Corruption and Financial Crime Prevention Policy
Group Whistleblowing Policy
Aligning business and social objectives, pages 74 and 75
Culture and ethics, page 81
Strategic Report
Chair's introduction and s172 statement 4
Our business explained 6
Chief Executive's view 10
Our stakeholders 12
Strategy in action 16
Sector review 24
Risk-informed decision making 28
Principal risks and uncertainties 31
Meteorological impact 37
Key Performance Indicators 38
Financial review 40
Operating review 56
Core businesses 58
Complementary businesses 68
A sustainable approach 74
Directors' Report
Chair's introduction to the Directors' Report 88
Compliance with the UK Corporate
Governance Code 2018 89
Board of Directors 90
Corporate governance 94
Nomination Committee report 114
Audit Committee report 120
Energy Markets Risk Committee report 130
Safety, Health and Environment Advisory
Committee report 132
Remuneration Committee Chair's statement 136
Remuneration at a glance 138
Annual report on remuneration 140
Directors' Remuneration Policy summary 154
Other statutory information 158
Statement of Directors' responsibilities 161
Financial Statements
Alternative Performance Measures 164
Consolidated income statement 171
Consolidated statement of
comprehensive income 172
Consolidated balance sheet 173
Consolidated statement of changes in equity 174
Consolidated cash flow statement 175
Notes to the consolidated
financial statements 176
Accompanying information 240
Company balance sheet 272
Company statement of changes in equity 273
Notes to the Company financial statements 274
Independent Auditor's report 285
Consolidated segmental statement 300
Shareholder information 308
SSE PLC ANNUAL REPORT 2020 For a better world of energy
Completion of Beatrice wind
farm, off the Caithness coast, in May 2019 confirmed SSE's capability as a developer and operator of world-class renewables assets.
SSE plc Annual Report 2020 1
STRATEGIC REPORT
FOR A BETTER WORLD OF ENERGY
SSE is an energy company that operates and invests across the UK and Ireland. Its purpose is to provide energy needed today while building a better world of energy for tomorrow; its vision is to be a leading energy company in a net-zero world; and its strategy is to create value for shareholders and society in a sustainable way through the successful development, efficient operation and responsible ownership of energy infrastructure and businesses. The following Strategic Report sets this out in more detail.
Strategic Report
Chair's introduction and s172 statement 4
Our business explained 6
Chief Executive's view 10
Our stakeholders 12
Strategy in action 16
Sector review 24
Risk-informed decision making 28
Principal risks and uncertainties 31
Meteorological impact 37
Key Performance Indicators 38
Financial review 40
Operating review 56
Core businesses 58
Complementary businesses 68
A sustainable approach 74
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SSE plc Annual Report 2020
SSE plc Annual Report 2020
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SSE plc published this content on 09 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 July 2020 13:07:01 UTC