#herewego
Integrated Annual Report 2023
Fluxys Belgium
#herewego
The energy transition is a massive
undertaking for society as a whole
and we are going all out
to help speed up this process.
Our infrastructure is essential
to making the transition happen.
2023 was a turning point.
We went from plans and projections
to breaking ground on new projects.
With infrastructure for security of supply
that we can sustainably deploy tomorrow
for the benefit of the carbon-neutral society.
And this is just the beginning.
We have set off, powered
by the vibrant strength
and forward-looking commitment
of all our employees.
30x30x30
17% 83%
194
135
98
31
32
2025 2030 2035 2050
-50% -67% -80%
What we’re doing to speed up theThis is who
we are
Transmission Storage Terminalling
Our ambition
Natural gas
& biomethane
Hydrogen
CO
2
Natural gas
& biomethane
Hydrogen
Natural gas
& biomethane
Hydrogen
CO
2
100%
focus on speeding up
the energy transition
independent
infrastructure
company
open access to our
infrastructure and
services
For the market
By 2030
provide capacity for annual
transport: 30 TWh of hydrogen
and 30 million tonnes of CO
2
In our own activities
Our investmentsOur contribution to prosperity
Our talents
942
Employees
17/83
Ratio
women/men
6.24
Average number of
training days per
full-time equivalent
40
Number of
employees taking
on a new role within
the company
95
New employees
net
0
be climate neutral
by 2050
10-year
investment plan
EUR 5.9bn
Sustainable
economic
activities
Other
investments
Personnel
Suppliers
Society (taxes)
Financial
institutions
(interest)
Shareholders
(dividend)
2023
EUR 491m
in added value
1
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Contents
Looking to the future ................................................ 2
Our profile: a purpose-driven company ............. 10
Why, what and how: our strategic framework ........... 12
Our context ............................................................................ 16
Supporting security of supply 24/7 ............................... 18
How we are speeding up the energy transition ...... 21
A low-carbon, reliable and affordable ........................ 30
energy system: how?
How we are reducing our own climate impact ........ 32
Our sustainability path: fluxtainable ............................ 34
Our people are the driving force .................................. 36
Our digital transformation path ..................................... 40
Our key financial data ....................................................... 42
Our structure and governance ...................................... 48
Our risk management ....................................................... 54
Legal and regulatory framework ................................... 58
Our ESG performance ............................................ 64
Double materiality assessment .................................. 68
Environment ........................................................................ 72
Climate change – Transporting the molecules ....... 73
for a carbon-neutral future
Climate change – Reducing our own .......................... 73
climate impact
Climate change – Biodiversity ....................................... 90
EU taxonomy for sustainable economic ...................... 83
activities
Social ..................................................................................... 94
Performance indicators regarding ............................... 95
the company's own workforce
Build and operate safe and ............................................ 96
reliable infrastructure
Employee safety ................................................................. 101
Diversity and inclusion ................................................... 104
Employee engagement .................................................. 106
Learning and talent development .................................. 111
Governance ........................................................................ 114
Customer care .................................................................... 115
Ethics, integrity and efforts ............................................... 117
to combat corruption
Annexes .............................................................................. 120
Methodology for calculating greenhouse ................ 121
gas emissions (Scope 1 and 2)
CSRD overview table ....................................................... 122
Corporate governance declaration ................... 132
Financial situation .................................................. 152
Statutory auditor’s report and ........................... 266
declaration by responsible persons
Glossary .................................................................. 276
Shareholder’s guide ............................................. 282
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Looking to the future
Looking
to the future
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Looking
to the future
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Breaking ground to make
the transition tangible
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Looking to the future
Andries Gryffroy
Chairman of the Board of Directors
Pascal De Buck
Managing Director and CEO
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Before we look ahead, what did Fluxys
Belgium stand for in 2023?
Pascal De Buck We broke ground on projects
showing what Fluxys Belgium stands for in the
energy transition. The new pipeline along the
Zeebrugge-Brussels corridor was built and is
now in use. Not only is it now a cornerstone for
securing the supply of natural gas in Belgium
and neighbouring countries, but it is also ready
to be used in the national hydrogen network of
the future. We're here to offer society security of
supply while speeding up the green transition.
Milestones 2023
Andries Gryffroy We have set off. Industrially,
we've taken the first big step towards the multi-
molecule infrastructure for a carbon-neutral
future. We're also ready to work towards the
necessary hydrogen and CO
2
infrastructure
within the new legal frameworks. We're
continuing to move full steam ahead at the pace
of industry. For numerous companies, switching
to hydrogen or CO
2
capture is the only way
forward if they want to continue anchoring their
business and employment locally.
Supporting security of
supply 24/7
Throughout the year all our
teams did everything they could
to support security of supply
in North-West Europe. The
geopolitical situation resulting
from the war in Ukraine has
profoundly changed the dynamics
on the gas markets and the
direction of flows in Europe. In
addition to supplying Belgium,
suppliers continued to carry large
quantities of natural gas to the
Netherlands and Germany via the
Belgian grid. At the same time,
our underground storage facility
in Loenhout got completely filled,
enabling to go into the winter with
a maximum buffer. In other words,
our Belgian grid once again
confirmed its role as an energy
hub for Europe, with Zeebrugge
as an important gateway.
Additional
transmission capacity
now on-stream
Speed and adaptability are
the watchwords when it
comes to supporting the new
supply situation in Europe. We
reinforced the Zeebrugge-
Brussels corridor with an
additional pipeline to carry
more natural gas inland from
Zeebrugge while maintaining high
flows to neighbouring countries.
The Desteldonk-Zele section of
the new pipeline commissioned in
late 2023. Moreover, the pipeline
has been designed to carry
hydrogen as soon as the market
is ready for it. This multi-molecule
pipeline is our first concrete
step in speeding up the energy
transition.
We're here to offer society security
of supply while speeding up the
green transition
Pascal De Buck
Managing Director and CEO
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Looking to the future
Hydrogen and CO
2
backbones take shape
We aim to help industry
decarbonise as much as possible.
We are making everey effort
to offer the first transmission
capacity for hydrogen and/or
CO
2
in 2026. After another year
of intensive consultation with
industry, we are hard at work
preparing for the necessary
investment decisions and in
2023 we built the first 44 km
of our hydrogen backbone. As
for CO
2
, we are also working
on a backbone for transporting
captured CO
2
to subsea storage
facilities and sites where it will
be reused. In addition to building
backbones for hydrogen and CO
2
we are also fully committed to
developing terminals for importing
carbon-neutral molecules and
exporting CO
2
.
First step towards
underground hydrogen
storage
Our expertise, innovative strength
and existing infrastructure are
vital building blocks for the future
energy system. Wherever possible
we will repurpose our 4,000 km
of pipelines so they can carry
hydrogen and CO
2
. We are also
running hydrogen injection tests
to determine whether our unique
Is industry ready for this transition?
Pascal De Buck Decarbonisation is a major
economic challenge for industry. We offer an
answer to this challenge because we operate
internationally through our parent company
Fluxys and because we're particularly well
positioned between the North Sea and the large
industrial valleys in North-West Europe. We're
on the path between overseas imports of low-
carbon molecules and consumers, and in the
opposite direction, between captured CO
2
from
industry and safe storage sites in the North Sea.
This enables us to attract large volumes and
factor economies of scale into the cost of our
services. We're on track to become the hydrogen
and CO
2
hub of choice for industry in Belgium
and North-West Europe.
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underground storage facility in
Loenhout can contribute to the
hydrogen economy. Today it is a
massive buffer for natural gas, in
the future possibly for hydrogen.
System operator
candidates: Fluxys
hydrogen and Fluxys
c-grid
The federal Hydrogen Act,
passed in July, regulates the
appointment of the system
operator responsible for planning,
developing and operating the
hydrogen transmission system in
Belgium. In line with the Hydrogen
Act, we founded our subsidiary
Fluxys hydrogen, which has
submitted its candidacy to serve
as the operator of the hydrogen
network. The federal government
is expected to appoint the system
operator in the first months of
2024. The regions are setting
up a regulatory framework for
CO
2
transmission activities. In
anticipation of this, together with
Pipelink, Socofe and SFPIM, we
founded our subsidiary Fluxys
c-grid, a separate company ready
to be a candidate for the planning,
development and aoperation
of the CO
2
transmission
infrastructure on Belgian territory.
Strong partners make
astrong hub
Strong partnerships and
connections with neighbouring
countries are essential for the
development of open-access
transmission infrastructure for
both hydrogen and CO
2
. Together
with OGE and Wintershall Dea
in Germany we are exploring
a cross-border pipeline for the
transmission of CO
2
. With OGE
we are also looking at a cross-
What challenges lie ahead?
Pascal De Buck We absolutely need an
integrated approach to the energy system as a
whole because making the transition to net-
zero is a threefold challenge. We must ensure a
carbon-neutral energy mix while households and
businesses need to have energy at all times – all
at the lowest possible cost to society. This is only
possible by looking at and planning everything
holistically. Energy efficiency must improve, we
need more green electricity, we need more green
and low-carbon molecules and we must ensure
that captured CO
2
can be reused or stored. We
must make all these solutions work together
seamlessly like a Swiss watch for the benefit of
all consumers.
Andries Gryffroy Efficient investment requires
a long-term approach. In developing hydrogen
and CO
2
infrastructure, we work closely with the
market. At the same time, looking further ahead
is key: to be cost-effective for society in the long
run, we must build the right size infrastructure
today for the volumes that will come later. So
it's important to find mechanisms together with
the public authorities to limit the risks of initial
investments.
Efficient investment
requires a long-term
approach
Andries Gryffroy
Chairman of the Board
of Directors
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Looking to the future
What does sustainable development look
like for Fluxys Belgium?
Andries Gryffroy With our investment plans for
hydrogen and CO
2
infrastructure in Belgium,
we're developing solutions for the large-scale
decarbonisation that society needs. The ESG
approach we further deepened together with our
stakeholders in 2023 gives us direction. It is our
compass for developing our business activities
sustainably in a long-term perspective for all of
our stakeholders.
border hydrogen connection
between Belgium and Germany.
With British National Gas we
are working also in the context
of the energy transition. And
with Dutch hydrogen system
operator Hynetwork Services we
are looking into the possibilities
to link our respective hydrogen
networks. By connecting our
hydrogen and CO
2
grids with
those of neighbouring countries,
we are developing our country
as a multi-molecule hub for the
economy in both Belgium and
North-West Europe.
Tapping the North Sea's
energy potential
The North Sea countries want to
boost their combined offshore
wind power generating capacity
to 300 GW by 2050 with a view to
making the North Sea the largest
green energy plant in Europe. In
order to carry maximum green
hydrogen from North Sea wind
ashore, we teamed up with the
other major gas grid operators
at the North Sea Summit in
Ostend to develop, together with
electricity grid operators, the best
infrastructure to ensure that not a
single puff of wind goes to waste
in the North Sea.
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Reducing our CO
2
emissions with
seawater
Our goal is to be climate-neutral
in 2050. The first milestones are
to halve our greenhouse gas
emissions in 2025 compared
to 2017 and to achieve a 67%
reduction in 2030. In 2023 at
our LNG terminal in Zeebrugge
we commissioned three
additional open-rack vaporisers
(ORVs) that use heat from
seawater to regasify LNG. These
ORVs replace traditional heating
units, resulting in much more
efficient energy consumption
and significantly lower CO
2
emissions at the terminal.
95 new colleagues
putting their backs
intoit
A large group of new talent joined
our team in 2023. No fewer than
95 new colleagues are pushing
hard to successfully speed up the
energy transition to a climate-
neutral society. The youngest new
colleague was 20 years old, the
most experienced 58!
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
11
Our profile
a purpose-driven company
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HOW
shaping together
a bright energy
future
WHY
connect
expand
secure
HOW
WHAT
speed up
green energy
transition
respect
open
reliable
fluxtainable
HOW
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Why, what and how:
our strategic framework
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Our purpose: why we matter
As a key infrastructure partner, we are building a sus-
tainable and cleaner energy future. That is our purpose.
With our terminalling, transmission and storage infra-
structure for different molecules, we bring energy where
it is needed – today and tomorrow.
The energy ecosystem is complex and
the demand for energy as a driver of
human progress combined with a global
need to make energy more sustainable
is a challenge that requires everyone’s
commitment. Redesigning the energy
system will not be easy, yet it can be done if
we work together. Together refers to all our
stakeholders: our employees, shareholders,
industrial partners, customers, the general
public and all actors in the energy system.
At Fluxys Belgium we firmly believe in this
collaboration.
together
bright – Our infrastructure, with its storage capacity
and capacity to handle molecules for a low-carbon
future such as hydrogen and CO
2
, will play a major
role in the transition to a bright energy future for all.
bright
The word future entails responsibility. With our
unique assets as an infrastructure company, we
owe it to ourselves to contribute to a greener
energy future for generations to come.
future
Shaping together
a bright energy future
What we want to achieve:
our ambition
As a key infrastructure partner, we want to accelerate
the energy transition with infrastructure for different
molecules. We aim to offer customers substantial capac-
ity for supplying hydrogen and carrying away CO
2
by
2030.
by 2030, we aim to offer our
customers transport capacity for
30 TWh of hydrogen and
30 million tonnes of CO
2
per year
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
1
our values
We value the uniqueness of every
individual.
We look out for each other,
keeping our employees safe and
well.
We make our decisions
consciously for the environment,
communities and future
generations.
respect
We foster teamwork and open
communication to create a workplace
where different perspectives are
embraced, and employees are
empowered to shape the future.
With an open mind, we take action,
we adapt swiftly, and we seize
opportunities with a can-do attitude
to drive the energy transition.
open
We are committed to earning and
building trust in all our partnerships.
We go above and beyond for our
customers and partners.
We are in it for the long term
and society can count on us for
affordable, sustainable and safe
infrastructures.
reliable
How we do it:
3 pillars
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2
an inspiring
vision of
sustainability
3
a clear
strategy
we accelerate the
energy transition
with multi-molecule
infrastructure, today
and tomorrow
we become a net
zero company
and we preserve
the natural
capital
we keep high
safety standards
in an evolving
business
we encourage
diversity, talent
development
and employee
engagement
we conduct
our business in
a responsible
way
moving green people responsiblesafe
Fluxtainable is our ESG compass (Environment – Social – Governance): how do we ensure we develop
ouractivities sustainably while taking a long-term view for us and for all our stakeholders? We are moving
forward in five areas on our sustainability path.
green
transition
contribute to a
sustainable and secure
energy supply
secure
develop, scale-up and
operate multi-molecule
infrastructure
expand
create low-carbon energy
value chains through partnerships
connect
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Further strengthening of
climate and energy policies
• The European Commission continued to build
on its Green Deal in 2023 with its launch of the
Industrial Carbon Management Strategy package
and the Net Zero Industry Act package, introduc-
ing new regulatory initiatives to support industry
in the energy transition. Both packages include
measures that, for the first time, create a frame-
work for building out the infrastructure chain for
the capture, transport and storage or reuse CO
2
.
• Provisional agreement has been reached on the
Decarbonisation of the Gas and Hydrogen Mar-
kets package, which is expected to pass and take
effect in the first half of 2024. This proposal sets out
a legal and regulatory framework for incorporating
carbon-neutral molecules, such as hydrogen, biom-
ethane and synthetic methane, alongside renewa-
ble electricity in the energy system of the future.
• In several European countries, including Belgium,
Germany, the Netherlands and France, there were
major policy breakthroughs in the development of
regulatory frameworks for hydrogen and CO
2
. The
Belgian federal government is expected to appoint
a hydrogen network operator in the first months
of 2024. The regions are putting in place a regu-
latory framework for CO
2
transporting activities.
High west-east flows continue
• In 2023 the European natural gas market
continued to feel the impact of geopoliti-
cal developments and the European Union's
REPowerEU initiative to quickly transition away
from the supply of Russian pipeline gas.
• The sharp decline in the Russian supply of
gas by pipeline led to maximum deployment
of LNG as an alternative source of supply.
• In response to Europe’s rising need for LNG
imports, several countries, including Germany
and the Netherlands, rapidly built or are in the
process of building floating LNG import termi-
nals (Floating Storage and Regasification Units
– FSRUs) to bring LNG closer to their countries.
• The additional inflow of LNG and new gas transit
configurations via pipeline mean that larger flows
from western Europe have largely replaced earlier
flows from the east. The market expects the new
west-east pattern to continue in the years ahead.
• The Belgian grid is an important crossroads
for the European gas market. Flows from
the west heading towards Germany and the
Netherlands remained high in 2023.
Our context
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North Sea: an important region for hydrogen supply
and CO
2
storage
• Given current climate and energy policy, demand
for natural gas in Europe is expected to gradu-
ally decline after 2030 while volumes of hydro-
gen and CO
2
transmitted are expected to rise.
• For both hydrogen and CO
2
the North Sea is
increasingly emerging as an important geo-
graphical region, both as a green energy
power plant and a safe storage location.
• The North Sea has sufficient storage capacity for
the expected CO
2
volumes and the ecosystem for
CO
2
capture and transport in north-western Europe
is being developed to a large extent around the
industrial clusters in the North Sea countries.
• At the same time, the North Sea offers enormous
energy potential that the North Sea countries
want to fully harness. They boosted their ambi-
tion for offshore wind capacity in 2023 and are
aiming for 300 GW of green electricity generat-
ing capacity by 2050, up from 30 GW today.
• This acceleration offers major prospects
for large-scale production of green electric-
ity and hydrogen from North Sea wind.
• Joint planning of network development for
hydrogen, CO
2
and electricity makes it possi-
ble to maximise the complementarity of differ-
ent networks and minimise system costs.
In
Out
212 TWh
(2022: 256 TWh)
102 TWh
(2022: 145 TWh)
LNG
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
The geopolitical situation
resulting from the war in
Ukraine has profoundly
changed the dynamics on
the gas markets and the
direction of gas flows. Our
commercial and operational
staff are doing their very
best to ensure our essential
service to society, even
during these challenging
times.
High volumes to Germany
and the Netherlands
continue
Together with neighbouring transmission system
operators, we found ways to offer maximum physically
available capacity for cross-border flows. Result: our
customers were once again able to get very large vol-
umes of natural gas to the Netherlands and Germany.
Our Belgian grid, with Zeebrugge as a central gateway,
once again confirmed its role as an energy crossroads
for Europe.
Supporting security of
supply 24/7
152 TWh
(2022 :
161 TWh)
Belgium's decision to maximally
exploit Zeebrugge's capacity has
been essential for the security of
Germany's energy supply since the
beginning of the geopolitical crisis.
German Chancellor Olaf Scholz
during the Belgian-German energy
summit in Zeebrugge
The Netherlands
Germany
Storage
Loenhout
Norway
United Kingdom
Consumption
Belgium
Storage
Total transit to
surrounding countries
357 TWh
(2022 : 440 TWh)
France
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Additional transmission
capacity now on-stream
Given the context of changing flows, in 2023 we
upgraded the Zeebrugge-Brussels route between
Desteldonk and Opwijk by building an additional pipe-
line in parallel with the existing line. This will boost our
capacity to carry natural gas inland from Zeebrugge
and at the same time allow us to maintain high flows to
neighbouring countries. For Belgium, the extra capacity
is needed for the new gas-fired power stations set to
commission and because, after 2024, no low-calorific
gas from the Groningen field in the Netherlands will
flow to the Belgian market. The new pipeline has been
designed as a multi-molecule line and can carry hydro-
gen as soon as the market is ready.
Desteldonk-Opwijk pipeline:
as much extra power as
15 nuclear reactors
The first part of the Desteldonk-Opwijk
pipeline commissioned in late 2023, and
the second part will follow suit in 2024.
This increases transmission capacity from
Zeebrugge by 15 GWh/h, equivalent of
the power of 15 nuclear reactors. The
Desteldonk-Opwijk pipeline is the first
phase in the project to upgrade the
Zeebrugge-Brussels route. Preparations
are now underway for the second phase,
with additional infrastructure between
Zeebrugge and Evergem.
Three more hectares
of trees
When we install new pipes, we
plant more trees. In so doing we are
contributing to the carbon-neutral
future in two ways. During the
construction of the pipeline between
Desteldonk and Opwijk, with the
help of Natuurpunt, we planted three
hectares of trees in Sint-Truiden,
Ninove, Heers, Aalter, Dendermonde,
Berlare and Bruges. All thanks to
thevolunteers!
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Storage already full by
1 September
The European Union requires Belgium and the other
EU member states to ensure, by 1 November each year,
their gas storage facilities are at least 90% full so they
can go into the winter with buffers filled as much as pos-
sible. Thanks in part to the special flexibility built into in
Fluxys Belgium's storage services, our customers had
already filled 100% of the storage by 1 September.
Large-scale
L/H-conversion
The Netherlands' exports of low-calorific gas (L-gas) are
decreasing due to the closure of the production field in
Groningen. In that perspective, Fluxys Belgium and the
transmission system operators in France and Germany
are adapting their networks to gradually replace the
supply of L-gas by high-calorific natural gas (H-gas)
from other sources and so ensure the continuity of the
natural gas supply.
In 2023, together with distribution system operators
Fluvius and Ores, we made another large-scale switch
from L-gas to H-gas. Some 388,000 connections,
mainly in Antwerp, Flemish Brabant and Walloon Bra-
bant, were involved.
The switchover of the other affected regions in Flan-
ders and Wallonia will follow in 2024. From then on,
L-gas from the Netherlands will only flow southwards
through our interconnected transmission network
towards France: conversion actions there are likely
to last until 2028.
The connection to various
sources and neighbouring
markets, the flexibility in service
offerings and the availability of
the teams at Fluxys Belgium, that
makes all the difference in these
turbulent times.
Finger on the pulse!
Discussing ideas with customers
moves things forward and meeting in
person gives an extra boost. In 2023,
we once again invited distribution
system operators and industry
connected to our network each for a
full day of interaction and exchange.
We also met with our customers and
partners at our booth at the annual
energy fair E-world in Essen.
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We deliver key solutions for
large-scale decarbonisation
The common thread in European energy and climate
policy is the need for a combination of solutions to
achieve climate neutrality. Energy efficiency must
be greatly increased, significantly more electricity
is required, which must also be completely green
or low-carbon, large quantities of green and low-car-
bon molecules such as hydrogen and biomethane are
also required and it must be possible to capture large
quantities of CO 2 for reuse or storage.
With its infrastructure, Fluxys Belgium plays a key role in
this combination of solutions for the energy transition.
We are doing everything we can to further develop our
infrastructure and convert it into a multi-molecule sys-
tem. In doing so, we are preparing the energy system
to not only carry natural gas, biomethane and synthetic
methane to consumers, but also to ensure the increas-
ing inflow of hydrogen and other green and low-carbon
molecules and CO
2
. This will enable us to offer consum-
ers powerful tools for large-scale decarbonisation and
thus also sustainably safeguard economic activity and
employment, among other things.
How we are speeding up
the energy transition
As a key infrastructure partner,
we want to contribute to an
efficient, reliable and realistic
energy system, with green
and low-carbon molecules
and with CO
2
capture as a
supporting and additional
solution. An energy system
open to the necessary import
and export flows of those
molecules to and from our
country. All for an energy
system that ensures carbon
neutrality, security of supply
and affordability.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
With infrastructure for green and low-
carbon molecules as well as CO
2
, we are
helping to build an energy vision that makes
sense.
Crucial role for green and low-carbon molecules
raw material for industry
The chemical industry needs green and low-carbon
molecules as raw materials for its processes. Products
such as fertilisers, which are crucial for the food and
agricultural industry, or plastics, for the manufacturing
industry, among others, require molecules in the pro-
duction process.
fuel for industry
There are industrial processes that require very high
temperatures. With electrification you cannot usually
make these processes efficiently sustainable, but this
is possible with green and low-carbon molecules.
fuel for long-distance transport
Heavy freight traffic, commercial shipping and aviation
are difficult to electrify. Green and low-carbon mol-
ecules can also play a role here, directly or as raw
materials for synthetic fuels (such as e-fuels).
fuel for power stations
Green and low-carbon molecules can be used to gen-
erate electricity at any time, which is doubly important.
After all, increasing electrification will sharply increase
both base and peak consumption while there are times
and periods when, due to little or no wind or sun in Bel-
gium, it is not possible to generate the necessary green
energy. And usually, importing electricity from neigh-
bouring countries is not a solution because their
weather conditions are similar. Power plants with green
and low-carbon molecules can be controlled flexibly
and keep the lights on.
heating source for buildings
Green and low-carbon molecules can be used as a
source of heating for office buildings, schools, shop-
ping centres and apartment blocks.
Testing hydrogen
underground
Can our underground storage site in
Loenhout store hydrogen in the future? Just
as we explored earlier the storage of natural
gas, we are now using our expertise and
innovative power to investigate the injection
and storage of hydrogen underground.
We are implementing the BE-HyStore pilot
project together with Ghent University
and Geostock, with the support of the
federal Energy Transition Fund. After the
preparatory research, we carried out a test in
2023 that involved injecting hydrogen more
than one kilometre underground.
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23
“With all the projects
we've seen, we can really
feel a tailwind”
Two full days of discussions about the
next steps we need to take towards
large-scale decarbonisation. We met up
with partners and potential customers
in the inspiring setting of the Atomium
in Brussels. Not only was this event an
opportunity for us to update everyone
on the development of the hydrogen and
CO
2
infrastructure, but it was also a great
platform for industry to present a range
of projects that help shape the hydrogen
and CO
2
value chains. Together we're
moving forward, step by step, in the
transition to a low-carbon economy.
Sectors that are difficult
to decarbonise rely on CO
2
capture
In some sectors, such as the cement and lime indus-
tries, significant amounts of CO
2
are inevitably released
via chemical reactions during the production process
itself. CO
2
capture is the only option if those sectors are
to sustainably maintain their activity and employment.
CO
2
capture is an alternative for industrial processes
that require high temperatures in those cases where,
for example, electricity does not currently offer an alter-
native. With infrastructure to transport captured CO
2
industry has a way to direct CO
2
to safe storage loca-
tions or to companies that reuse CO
2
as a raw material.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
How we are developing our infrastructure
into a multi-molecule system
Joint development
Since early 2021 we have been preparing the necessary
hydrogen and CO
2
infrastructure in cooperation with
industry, partners, government authorities, operators in
neighbouring countries, distribution system operators
and other stakeholders. We are doing everything we
can to offer our customers the first transmission capac-
ity for hydrogen and/or CO
2
by 2026.
In line with needs
We are developing transmission infrastructure for
hydrogen and CO
2
in line with the needs of industrial
areas.
Connected to neighbouring
countries
We are planning connections between industrial areas
and with neighbouring countries in order to build the
hydrogen and CO
2
networks into integrated systems.
Focus on competitive tariffs
Thanks to connections with neighbouring countries, we
offer high-capacity infrastructure that should be made
available at competitive tariffs thanks to the economies
of scale.
Crossroads for sustainability
In other words, we are laying the foundation for sustain-
ably cementing Belgium's role as an energy crossroads
by making the country a hydrogen and CO
2
hub for the
economy in Belgium and North-West Europe.
Hydrogen and CO
2
networks connect industrial
areas and neighbouring countries to each other:
step-by-step development
Long-term vision hydrogen network:
Belgium hub for hydrogen import and transit
Long-term vision CO
2
network:
Belgium hub for CO
2
transit and export
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Embedded in the
European hydrogen
backbone
Since 2020, Fluxys Belgium has
been working with other energy
infrastructure companies as part of
the European Hydrogen Backbone
initiative. The initiative has now
grown into a joint approach for
developing hydrogen infrastructure
in 28 European countries that largely
consists of repurposed infrastructure
that currently carries natural gas.
Hydrogen network takes
shape
In the summer, we welcomed Prime Minister Alexander
De Croo and Federal Energy Minister Tinne Van der
Straeten to the project site where the additional pipe-
line is being built between Desteldonk and Opwijk. EU
Energy Commissioner Kadri Simson also visited the
pipeline site. Prime Minister De Croo said: “We are fully
committed to the transition and we are ensuring that our
pipelines are hydrogen-proof.”
The pipeline is the first part of the additional infrastruc-
ture running from Zeebrugge inland to Brussels that we
can immediately deploy for the transmission of hydro-
gen as soon as the market is ready. The infrastructure
is a first part of the hydrogen backbone in Belgium for
supplying Belgium and the cross-border transport with
Germany and the other surrounding countries.
This project is a climate project.
These are the first kilometres of
pipeline in the hydrogen highway
that will help make our industry
greener.
Belgian Federal Energy Minister
Tinne Van der Straeten
Zeebrugge as
a multi-molecule hub
• Open-access terminal
• Importing hydrogen or derivatives for
transshipment to the hydrogen
network and then transmission within
Belgium and to neighbouring countries
• Receiving captured CO
2
from the CO
2
network for transfer to the offshore
pipeline and transmission to safe and
permanent offshore storage
(see 'Offshore CO
2
pipeline
in the North Sea' p. 27)
• Status: preliminary research
• Proposed timing: commissioning
before 2030
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Infrastructure for hydrogen import and CO
2
export
Hydrogen pipeline
CO2 pipeline
H
2
/NH
3
+ CO
2
terminal
CO
2
terminal
Interconnection hub
Hydrogen shipping
CO
2
shipping
Intermodal
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Import terminal for green ammonia
in Antwerp
• Open-access terminal
• Project of parent company Fluxys and Advario
• Import terminal for green ammonia: use of green
ammonia as a carbon-neutral feedstock and fuel.
Potentially also its conversion into green hydrogen
for transmission via the hydrogen network.
Ammonia is an efficient molecule for the long-
distance transmission of green hydrogen
generated by wind and solar energy
• Status: feasibility study
• Proposed timing: commissioning by 2028
Antwerp@C CO
2
Export Hub
• Open-access terminal
• Project of Fluxys Belgium, Air Liquide
and Port of Antwerp-Bruges
• Multimodal terminal for receiving, liquefying and
temporarily storing CO
2
and loading it onto ships
to be taken to permanent offshore storage
• Capacity: initially 2.5 million tonnes of
CO
2
per year, with possibility of expan-
sion to 10 million tonnes of CO
2
per year
• Status: engineering & design
• Proposed timing: commissioning by 2027
•
Ghent Carbon Hub
• Open-access terminal
• Fluxys Belgium project with ArcelorMittal Belgium
and North Sea Port
• Multimodal terminal for receiving, liquefying and
temporarily storing CO
2
and loading it onto ships
to be taken to permanent offshore storage
• Capacity: up to 4 million tonnes of CO
2
per year
• Status: feasibility study
• Proposed timing: commissioning by 2028
•
Offshore CO
2
pipeline
in the North Sea
• Open-access pipeline
• Project CO
2
Highway Europe of parent company
Fluxys and Equinor
• Subsea pipeline from Zeebrugge to storage
sites in the Norwegian waters of the North Sea
• Capacity: 30 million tonnes of CO
2
per year
• Status : feasibility study
• Proposed timing : commissioning before 2030
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Ensuring sufficient hydrogen availability
Quickly achieving large volumes
with blue hydrogen
At the 2023 North Sea Summit in Ostend, the North Sea
countries committed to boosting offshore wind capacity
in the North Sea to 300 GW by 2050, making the North
Sea the largest green energy plant in Europe. This
means there is significant potential for green hydrogen
from North Sea wind.
Belgium and Western Europe still have only limited
potential to quickly scale up the production of green
hydrogen from renewable electricity, but one alterna-
tive is 'blue hydrogen'. This is low-carbon hydrogen
produced from natural gas, where the released CO
2
is
captured and reused or stored.
ENGIE and Equinor are developing their H2BE project
in Ghent for the large-scale production of blue hydro-
gen. The project is an important link in quickly and
reliably bringing large volumes of low-carbon hydrogen
to market in Belgium. Fluxys Belgium is working with
ENGIE and Equinor to connect the project to the hydro-
gen and CO
2
networks in the Ghent industrial zone.
Importing green hydrogen from
overseas
Overseas imports of carbon-neutral hydrogen are
another pillar for ensuring the availability of suffi-
cient green hydrogen. To that end, particularly windy
and sunny areas where large quantities of green
hydrogen can be produced from green electricity are
being looked at. Green hydrogen can then be exported
by ship to import terminals in Europe, for example in the
form of green ammonia.
With this in mind, parent company Fluxys is joining
forces with DEME, ENGIE, EXMAR, Port of Antwerp-Bru-
ges and WaterstofNet in the Hydrogen Import Coalition.
Governments and ports in Belgium already concluded
agreements with Oman, Namibia, Chile and Australia,
among others, to import green hydrogen. Parent com-
pany Fluxys became a partner in Omani transmission
system operator OQGN in 2023, which is expected to
play a key role in developing infrastructure to turn the
country into an export hub of green hydrogen. Other
Belgian companies such as Port of Antwerp-Bruges
and DEME also already have a significant presence in
the port of Duqm and in the hydrogen sector in Oman.
Our services for speeding up the energy transition
Transmission
Storage Storage
Terminalling
Transmission
Terminalling
Transmission
Terminalling
Natural gas & biomethane
services
Hydrogen services CO
2
services
We will transport natural gas for as
long as necessary
We provide infrastructure that offers
access to as many sources as possible
to support security of supply
In this way we help society make the
transition to carbon-neutral energy
and raw materials. We are already able
to transport plenty of carbon-neutral
biomethane
We get low-carbon hydrogen to
customers in the form of energy
and raw material
We provide infrastructure that
offers access to as many sources
as possible to support security
of supply
In this way we help decarbonise
industry, power generation and
the transport sector
We transport CO
2
to sites
where it can be reused or
exported to permanent
storage
We provide infrastructure
that offers as many
takeaway options as
possible
In this way we help
decarbonise industry that
engages in carbon capture
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Extra boost for the biomethane market
So far, biomethane units in Belgium have all been con-
nected to distribution systems. Large-scale facilities
can connect to Fluxys Belgium's high-pressure net-
work. In 2023 we made preparations to connect the
Green Logix Biogas facilities in Lommel to our network
in 2024.
Fluxys is working with the distribution system operators
and CREG on an innovative approach for connecting
biomethane facilities. The aim is to offer producers an
attractive investment solution that allows biomethane
to automatically flow into the Fluxys Belgium’s network
in certain circumstances.
The production of biomethane in Belgium is getting off the ground.
Eight biomethane units are currently operational and about 20 projects are
in various stages of research, development or construction.
Operational biomethane
units
Projects under research,
development or
construction
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
A low-carbon, reliable and
affordable energy system:
how?
A low-carbon energy mix is
possible
Oil, natural gas and electricity currently account for
a large proportion of the energy mix in Belgium.
Greater energy efficiency is expected to reduce the
consumption of Belgian homes and businesses by 30
to 40% by 2050. At the same time, the energy mix must
evolve towards a low-carbon combination of electricity,
molecules and biofuels.
A low-carbon mix of electricity, molecules and biofuels
is possible. Belgium and the other North Sea coun-
tries plan to turn the North Sea into the largest green
energy plant in Europe with plenty of additional green
electricity and hydrogen from wind. New technologies
leveraging green and low-carbon molecules and
carbon capture, use and storage will also play an
essential role in the sustainable transition. Also, devel-
opments in nuclear technology could potentially
contribute to the energy mix in the long term.
The energy system of tomorrow
must take care of three things at
one: provide the energy needed
at any time in a low-carbon
mix that as a whole remains
affordable for households and
businesses. This is only possible
if we take into account the
costs and benefits along the
whole chain from production
through transport and storage to
consumption in developing the
necessary infrastructure.
Terawatt-hour/gigawatt-hour is the quantity of energy
consumed Watt is the unit of power of an energy source
1 terawatt-hour is 1000 gigawatt-hours
1 gigawatt = 1 nuclear power plant
molecules
electricity
biofuels
Now 2050
550 terawatt-hours
energy mix in silos
350 - 400 terawatt-hours, of which 100-200 in molecules
a low carbon energy system
Boundaries between our
current energy systems are
detrimental to our security
of supply and energy
affordability.
H
2
and
derivatives
bio and
syn CH
4
demand
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Integrated system-based
approach for the best
possible mix
A low-carbon energy mix in itself is not enough. How
do we ensure that the most appropriate technology for
climate neutrality is always used for the various types
of energy consumption? How do we best enable
the various solutions in the mix to work together to
ensure that there is enough energy at all times at the
lowest possible social cost? To that end, we must look
at the energy system as a whole and all the interac-
tions between the different parts. By taking this kind of
integrated long-term system-based approach, we gain
insight into how the entire chain from production to
transport to consumption can be optimised in terms
of costs, implementation times and maintenance of
security of supply.
Innovative energy system
model: Integration
An integrated system-based approach requires the
use of innovative energy system models. Together
with, among others, the University of Liège and with
the support of the federal Energy Transition Fund,
Fluxys Belgium has developed one such system model:
Integration. This enables us to map out how, by
2050, flows of electricity, hydrogen and derivatives,
methane and CO
2
will optimally complement each other
at the lowest price in a carbon-neutral ecosystem.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Nice milestone hit
With Go for Net 0 we have a
programme to replace more
than 750 pieces of equipment
that emit methane. Significant
progress: our teams reached
the 500-unit milestone by
theend of 2023!
Methane emissions down
Our teams are working on four tracks to further
systematically tackle methane emissions
Reduce emissions from control
equipment
We replace control equipment generating emissions by
equipment with no emissions.
Limit emissions during works on the
network
Natural gas often has to be removed from a pipeline
section during maintenance or repair work. We have
various ways of preventing natural gas from being
released into the air. An exception to this may be made
for urgent maintenance or repair work.
Reduce fugitive methane emissions
With periodic LDAR (Leak Detection And Repair)
campaigns we detect parts in the facilities that are not
perfectly gastight.
Reduce operational emissions
Various initiatives to minimise or eliminate methane
emissions from compressors.
How we are reducing
our own climate impact
We are working hard to
accelerate the transition to
a climate-neutral society
with our infrastructure. We
are working just as hard on
the climate impact of our own
activities. Our Go for Net 0
project sets the tone: by 2025
we will halve our greenhouse
gas emissions compared to
2017. And by 2050 we will be
carbon-neutral in our activities.
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We’re gaining ground with
a range of initiatives, large
and small. Every project we
tick off is a victory for the
team working on it.
Using seawater for
regasification: 116,750 fewer
tonnes of CO
2
in 2023
Using heat from seawater to regasify
liquefied natural gas significantly
reduces the CO
2
footprint of the LNG
terminal in Zeebrugge. In 2023, we
used the equivalent of about 650
GWh of heat from seawater. In this
way we avoided 116,750 tonnes of
CO
2
emissions. In late 2023, we
commissioned three additional open-
rack vaporisers: a milestone in further
reducing the terminal's emissions.
Approach to CO
2
emissions
Actions taken for compressor
facilities
When balancing the network or controlling gas flows,
Fluxys Belgium endeavours to use its compressor
facilities as little as possible. At our Loenhout
underground storage facility, we will also replace
natural gas-powered compression facilities with
electricity-powered equipment.
Green gas
Fluxys Belgium buys green gas certificates from
biomethane producer IOK Beerse to heat its head office
and Anderlecht site.
LNG terminal: regasification using
the heat from seawater
The Zeebrugge LNG terminal has been using an open-
rack vaporiser since 2013. Using the heat from seawater
to regasify LNG will significantly reduce the terminal's
energy consumption and emissions. In late 2023, we
commissioned three additional open-rack vaporisers.
To further reduce the terminal's CO
2
's emissions
we are looking into different options, including the
construction of additional open-rack vaporisers.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
S
o
c
i
a
l
E
n
v
i
r
o
n
m
e
n
t
G
o
v
e
r
n
a
n
c
e
Employee
engagement
Employee
safety
Customer
care
Biodiversity
Learning and
talent
development
Building and
operating safe
and reliable
infrastructure
Diversity and
inclusion
Ethics, integrity
and
anti-corruption
Climate change:
reducing our own
climate impact
Climate change:
transporting the
molecules for
acarbon-neutral
future
Our sustainability path:
fluxtainable
How do we move forward
sustainably? We worked with
our stakeholders to define
our ESG compass.
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Fluxtainable is our ESG compass. How do we ensure that we
develop our activities sustainably in a long-term perspective for us
and for all our stakeholders? Fluxtainable is also our dashboard for
communicating transparently about the progress we are making in
oursustainability performance.
What is our impact on the environment and society?
And what financial impact do external factors have on
our company? On this basis, together with our stake-
holders, we identified the ten material ESG topics
that form the core of our path towards sustainability.
We group the ten material ESG topics into five key
domains.
we accelerate the energy
transition with multi-molecule
infrastructure, today and tomorrow
we become a net zero
company and we preserve the
natural capital
we keep high safety
standards in an evolving business
we encourage
diversity, talent development
and employee engagement
we conduct our
business in a responsible way
both today and tomorrow, our core business is building and operating
infrastructure for a reliable and uninterrupted flow of molecules
our focus is on innovative projects and substantial investments in
infrastructure for hydrogen and derivatives, CO
2
and other molecules
to make the transition to a low-carbon economy
we will reduce our greenhouse gas emissions by 50% by 2025, by
67% by 2030 and achieve carbon neutrality by 2050
when building new infrastructure and in our daily activities we are
committed to preserving and promoting the biodiversity of our sites
our top priority is the safety of our employees and local residents in
the areas in which we operate
transporting, transshipping and storing molecules safely is our core
business, today and tomorrow
well-being is our priority
we ensure an inclusive working environment where everyone feels
respected and valued
we encourage continuous learning and personal growth
our values, feedback culture, the safety of our employees, learning
and engagement are all crucial drivers for a successful energy
transition
our ethical code, which we share with our stakeholders, is the basis for
our daily actions
our commitment to meeting the needs of our customers and ensuring
their satisfaction drives us to improve continuously
moving
green
people
responsible
safe
In 2023, we refined our ESG approach in line with the new Corporate Sustainability Reporting Directive (CSRD).
We are taking things one step at a time. This year, we are already proactively reporting, for 2023, largely in
accordance with the Directive (see the section on Our ESG performance, p. 65). The Directive takes effect for
reporting purpose in 2025 for financial year 2024.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Our people are the
driving force
Rapidly advancing
technological progress, climate
change, the energy transition,
demographic shifts and social
developments, including in the
workplace – these changes
and other social trends
helped determine our focus
in 2023. In such a dynamic
environment, talent is both a
valuable asset and a crucial
factor for ensuring business
continuity and encouraging
innovation.
Focus on managing change
Companies worldwide are faced with a growing
demand for specially trained employees, not just those
with technical and operational skills, but also in digital
technologies, data analysis, artificial intelligence and
sustainability. At the same time, the importance of soft
skills, such as creativity, analytical and problem-solving
skills, collaboration and interpersonal communication,
is on the rise. These are essential for tackling complex
challenges, promoting growth in a global context and
dealing with uncertainty.
We continued to address these challenges confidently
in 2023. After all, at Fluxys we believe that true growth
starts with investing in the growth of our human
capital. Accordingly, the past year was all about
nurturing, developing and deploying the unique skills
and capabilities of our experienced and new employ-
ees. From inspiring leaders to dedicated team mem-
bers: every individual contributes to our organisation's
resilience and innovative capacity.
The key constant
in 2023 was the high
speed of change
Vibrant summer party
Our annual Summer Party was
once again a big hit. Nearly 600
enthusiastic and motivated colleagues
created a vibrant atmosphere at the
Latina Summer Party, enjoying the
beats of Latin music under a radiant
sun. It was a memorable evening
for all, with lots of laughter and
dancing. New contacts were made
and ideas were shared, all with a view
to pushing boundaries together and
continuing to build a clean future.
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Focusing on managing change is a common thread
throughout our approach. Why do we do what we do
and how do we do it? The answer to these and other
questions is, of course, our purpose: Shaping together
a bright energy future. We believe that being part of
the solution for climate neutrality is our way forward,
including in our strategy for our people and our
organisation. In this strategy we focus on three key
areas:
• Our transformation journey as a company
• Developing future-proof employees
• Offering meaningful work as an attractive employer
Our transformation journey
as a company
In 2023 we deployed, through various initiatives,
resources in line with our ambitions.
We made great progress towards a sustainable,
renovated head office in the heart of Brussels, Belgium
and Europe. Under our work@fluxys initiative, connectiv-
ity, collaboration and workplace choice have become key
concepts in our transformation project. We are taking this
opportunity to implement activity-based working, in other
words choosing a workstation based on the activity being
done at that moment. That can mean working at different
workstations during the course of a given working day.
Having learned from our experiences at head office, we
are rolling out this approach to other locations.
In mid-2023 more than 50 Fluxys Group employees were
involved in talks to review the company’s values. Initially
formulated back in 2003, the time had come to evalu-
ate which values were still relevant and which needed
to be cultivated in order to achieve Fluxys' ambition in
the energy transition. After a generational change with
new expressed preferences, the following three values
emerged: respect, open, reliable.
We started by setting up organisational structures to
strongly support our ambition for powerfully support-
ing the energy transition. It goes without saying that
developing our activities for molecules other than natural
gas requires talent in addition to financial, operational and
other resources.
Keeping everyone on board is a principle that is crucial to
Fluxys, and that was very much the case in 2023. We have
a long tradition of constructive social dialogue, which we
continued to focus on. All partners were involved in the
decision-making process.
Working together to endorse our
strategic ambitions and setting out
the priorities for the coming year
in terms of accelerating the energy
transition. That is the purpose of our
annual Bright Connections event,
which last year paid extra attention
to our vision of sustainability,
fluxtainable, and our values:
respect, open and reliable.
Bright Connections
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Developing future-proof
employees
The skills of the future do not come
naturally
By offering various learning and development oppor-
tunities, encouraging internal mobility and setting up
projects with employees from different teams, we
enable colleagues to broaden their expertise and give
them a chance to become more familiar with different
aspects of our organisation. This not only enhances
their skills, but also promotes a culture of collaboration
and knowledge sharing, which benefits our collec-
tive growth. By combining these approaches, we not
only increase employee engagement and satisfaction,
but also strengthen our flexibility and competitiveness.
Cultivating a culture of lifelong
learning
A culture of lifelong learning goes beyond traditional
training programmes and professional development
initiatives. It involves a mindset and a commitment
to growth that lasts throughout the employee’s career.
By embracing that culture, we enable our employees
to gain new knowledge, develop new skills and expand
their capabilities.
In 2023 we focused on:
• encouraging employees to take control of their own
personal development: every employee is in charge
of his or her own growth and development path
• offering accessible learning opportunities: in
addition to various platforms, such as keypoint,
e-Bib and OASE, we also focused on Lunch
& Learn initiatives for learning in groups
• supporting continuous improvement: based on
feedback, both formal and informal, we focused
almost constantly on improvement processes
• promoting collaboration and knowledge sharing:
by working together in teams and on a compa-
ny-wide basis, by sharing best practices and
deploying digital tools that facilitate collaboration
• embracing technology: for example, in connec-
tion with onboarding. The app that encourages
successful onboarding is highly appreciated by
both new colleagues and team managers
Warm welcome
A warm welcome really makes a
difference, which is why we make
sure new employees immediately
feel right at home, get to know their
colleagues and immediately feel an
affinity with the company. The Meet &
Greet is a day-long event where new
employees can learn more about the
company and get to know each other
in a laid-back atmosphere. Nearly 100
new employees experienced their
first Fluxys day inthis way in 2023.
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39
Offering meaningful work as
an attractive employer
Fully involving employees
Working together, being together and celebrating
together are all crucial elements for keeping colleagues
involved. Connectivity is not just the foundation underly-
ing the rules on working from home, but is also the basis
for events like our Summer Party and our New Year's
event. Our onboarding initiatives are also important when
it comes to talent retention. Examples include our Meet &
Greet events, our visits to Zeebrugge and the Welcome
Days.
An attractive employer in a
challenging labour market
Attracting new talent is a constant challenge. We
previously developed a campaign for this that we
continued vigorously in 2023. We also conducted a specific
campaign for special profiles for our terminal in
Zeebrugge. Our efforts did not stop there, because catch-
ing the attention of a potential candidate is just the first
step. That is why we took the following initiatives:
• a more optimal recruitment process
with a significantly shorter lead time
from application to recruitment
• a new onboarding tool to improve the experi-
ence of both new employees and managers
• promotion of internal mobility with an impor-
tant role for appreciating soft skills
• a more attractive salary, in particular by
making our mobility options greener.
A new competency model for
stimulating growth
In 2023, we introduced a new competency model we
custom developed in line with our needs and which
reflects the Group's strategic orientations. Our new
competency model not only promotes the growth-
oriented mindset needed to compete in today's
environment, but also sets out the framework for desired
leadership behaviours within the organisation. The model
is based on optimism, drive and a strong belief that one
can develop by challenging oneself and embracing
feedback.
Leadership: working on ourselves
for a successful transformation
Leadership at all levels is essential for fostering a
positive and productive work environment. Leaders face
an increasingly complex set of challenges. The intangible
aspects of change have become more prominent, making
support and guidance necessary for leaders to navigate
these transformations.
To meet these needs, in 2023 Fluxys introduced a
new leadership programme at all relevant levels. By
investing in leadership development, we ensure that
our leaders are equipped to effectively lead business
and cultural transformations.
Lunch & Learn
Our employees broadened their
horizons last year with a Lunch
& Learn session on the ins and
outs of the foreign subsidiaries of
parent group Fluxys. This is a way
to keep them up to date on what is
happening in other parts of Europe
and the world and what our big
projects and challenges are.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Our digital
transformation path
Fluxys Belgium is strengthening its position with its mix
of extensive digitalisation and enthusiasm for new ideas,
aspart of a cross-cutting approach. With this approach,
weare making our organisation more agile, consolidating
the foundations of our drive to speed up the energy
transition, improving services for our customers and
developing new opportunities.
Digital transformation: acceleration and expansion
We are pursuing our work on rolling out large-scale digitalisation through
the Digital Transformation programme, which aims to both accelerate and expand this process.
Accelerator
Is our innovation lab approach to quickly and flexibly
developing digital solutions for our customers, employ-
ees and other stakeholders. We always work with ad
hoc cross-cutting Accelerator teams to tackle a very
specific challenge of our business. We first look for
the right problem from the end-user's perspective and
then collect the different possible solutions and test the
most suitable of them and align them optimally with the
end-user's needs.
In 2023, the Accelerator teams developed solutions
for gas flow and capacity planning in a multi-molecule
system. Other teams worked on innovative ways to cut
energy costs and our own emissions, and on solutions
to best facilitate the new way of activity-based working
within the company. Another team worked on a Digital
Twin, a digital double of our network that, among other
things, can be used to simulate the flow of other gases
than natural gas in the network.
Digital Workplace
Is our approach to creating a working environment
that supports digital transformation, hybrid collabo-
ration and connectivity between employees wher-
ever possible. At the same time, our employees are
consolidating their digital skills under the guidance of
the Digital Coaches. In 2023, we focused on improv-
ing the digital dexterity of our employees so that they
can make even better use of existing and emerging
technological solutions.
Digital inspiration
On Digital Days, we embrace the latest digital devel-
opments and enhance our digital skills. Nearly 600
employees have immersed themselves in the world
of artificial intelligence, virtual reality and other new
trends. Digital Days are inspiring events giving us the
opportunity to share exciting insights and explore new
digital skills.
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Innovation and consolidation of our ICT foundations
The Digital Transformation programme focuses on both innovation and
consolidating the ICT foundations of Fluxys Belgium.
Cloud
Deploying the Cloud architecture for business applica-
tions and exploring the possibility of gradually moving
gas flow applications to the Cloud.
Smart Data Factory
Bringing together, for internal use, data from various
systems along with the associated visualisation tools
to provide a quicker and clearer insight into all the
available data.
Internet of Things (IoT)
Using IoT capabilities to optimise the operational
management and maintenance of the pipeline network
and make it possible to carry out work remotely.
GSmart
Continuing to focus on technological innovation for our
in-house applications for gas transport, used by various
infrastructure companies.
SAP
Migrating to a new SAP environment for all Enterprise
Resource Planning, including the innovation to provide
our technicians in the field with up to date tools to best
guide their work.
Cybersecurity
Fully committing to securing our data, focusing on our
technical sites. In 2023, we obtained ISO 27001 cer-
tification in connection with Network and Information
Systems (NIS) legislation. To learn more, see ‘Safe and
reliable infrastructure - Cyber security and ICT systems',
p. 98.
Focus on cyber vigilance
Stay alert and don't get hooked:
this message is more important
than ever at a time of fake
emails and phone calls targeting
our passwords and sensitive
information. To ensure that
cybercriminals have no chance,
we organise company-wide
unannounced drills to teach us to
be alert to phishing and spoofing
at all times.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Consolidated turnover and net profit
Fluxys Belgium generated turnover of EUR 592.8 million
in 2023. This represents a decrease of EUR 319.8 million
compared with 2022, when turnover stood at EUR
912.6 million. This change is in line with the tariff
methodology. The exceptional solidarity contribution
of EUR 300 million in 2022 was not repeated in 2023.
As a result, there was no impact on revenue in 2023 as
there was in 2022.
The consolidated net profit decreased by EUR
83.7 million in 2022 to EUR 77.4 million in 2023, a drop
of EUR 6.3 million. This change in the net profit was due
mainly to the reduction in the fair margin set out in the
tariff methodology for the LNG terminal.
Efficiency efforts in line with
regulated tariff model
The 2020-2023 tariff methodology (established by the
regulator, CREG) applies the principle that all reasona-
ble costs, including interest and fair compensation, are
covered by the regulated income. In addition, there
are various incentives to control costs and guide and
control aspects of company performance. By strictly
controlling its operating costs, combined with signifi-
cant efforts to improve efficiency, Fluxys Belgium has
managed to achieve most regulatory objectives and to
book those incentives in a period of major operational
challenges.
Income statement (in thousands of EUR) 31.12.2023 31.12.2022
Operating revenue 592,788 912,559
EBITDA* 285,809 323,167
EBIT* 129,570 147,305
Net profit 77,423 83,728
Balance sheet (in thousands of EUR) 31.12.2023 31.12.2022
Investments in property, plant and equipment for the period
167,654 105,525
Total property, plant and equipment 1,873,286 1,855,375
Equity 613,413 643,617
Net financial debt* 219,404 493,800
Total consolidated balance sheet 3,358,616 3,406,570
* See glossary on page 46-47.
Within the limits of the regulatory framework applicable to our
business, we strive to achieve optimal results for our shareholders
by maintaining a healthy financial structure, keeping operating
costs under control and achieving regulatory incentive targets.
Our activities contribute hugely to the prosperity of both our
shareholders, our employees, society in general and the economy.
At the same time, we are fully committed to accelerating the energy
transition and, in so doing, making our contribution to prosperity
future-proof.
Our key financial data
Consolidated key financial data
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Investments totalling
EUR167.7million
In 2023 investments in property, plant and equip-
ment totalled EUR 167.7 million, compared with EUR
105.5 million in 2022. Of this amount, EUR 50.4 million
was spent on LNG infrastructure projects, EUR 9.1 million
on storage-related projects and EUR 107.9 million on
transmission-related projects, including EUR 51.3 million
for the Desteldonk-Opwijk pipeline, which is ready to
be used to carry hydrogen as soon as the market is
ready.
Contributing to ever greater
prosperity
Fluxys Belgium creates prosperity by contributing to
the economic growth of the society and environment
in which it operates. This contribution is measured
through the added value we generate and distribute to
our stakeholders. In 2023 the added value generated
by our ongoing activities totalled EUR 491.3 million, up
EUR 14.3 million compared with 2022.
Outlook for 2024
Under the 2024-2027 tariff methodology, the net profit
from Belgian regulated activities will be determined
based on various regulatory parameters, including
equity invested, financial structure and incentives.
Reductions in transmission and storage
tariffs have no impact on results
In 2023, federal energy regulator CREG approved
Fluxys Belgium's new transmission and storage tar-
iff proposals for the 2024-2027 regulatory period.
For transmission tariffs, the 10% reduction applied in
July 2022 will be extended into the 2024-2027 reg-
ulatory period. Storage tariffs will be reduced by 20%
compared to 2023. These tariff reductions have no
impact on the results of Fluxys Belgium.
The favourable trend in transmission tariffs is mainly
due to the sale of additional capacity to support secu-
rity of supply in Germany and the Netherlands. Mar-
ket conditions for storage were also more favourable
than expected, resulting in higher than expected reve-
nue. As provided for in the regulatory framework, this
additional revenue is reserved in the adjustment
account and gradually returned to the market, either via
tariff reductions or via investments aimed at strength-
ening security of supply and supporting the energy
transition.
Agreement between Fluxys Belgium
and CREG on the fair margin
Fluxys Belgium and CREG reached an agreement
in February 2024 to propose, via a public consulta-
tion of the market, a number of changes to the tariff
methodology for the natural gas transmission system,
the natural gas storage facility and the LNG facility for
the 2024-2027 regulatory period.
The tariff methodology adopted in June 2022 pro-
vides for the use of a risk-free interest rate of 1.68% for
calculating the margin for the four years in the 2024-
2027 regulatory period. In the current context of strong
interest rate volatility, an overall upward trend over the
past two years and particularly high inflation in 2022,
a number of changes are necessary to ensure a fair
remuneration for the system operators on the capital
invested in regulated assets and to enable them to
make the investments to carry out their activities.
The public consultation on the changes to the tariff
methodology will run from 14 March to 14 April 2024.
The impact of the proposed changes will be covered
by the adjustment account. The tariffs set by CREG
for the 2024-2027 regulatory period therefore remain
unchanged at this stage.
Geopolitical developments
Based on the information available so far, it is extremely
difficult to anticipate the impact of the war in Ukraine.
Based on the current understanding of the situation,
the essential nature of the company's activities and
its regulatory framework, at present we do not antic-
ipate the war and the resulting measures and market
developments having any significant impact on the
consolidated result of Fluxys Belgium in 2024.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Subsidiary activities and statutory profits
Fluxys LNG
Fluxys LNG (a consolidated subsidiary in which Fluxys
Belgium holds a 99.9% stake and Flux Re a 0.01%
stake) is the owner and operator of the Zeebrugge LNG
terminal and sells terminalling capacity and associated
services in accordance with the regulatory framework.
Fluxys LNG's equity totalled EUR 133.9 million as at
31 December 2023, compared with EUR 141.7 million the
previous year. Net profit for financial year 2023 totalled
EUR 20.3 million, compared to EUR 32.1 million 2022.
Flux Re
Flux Re (consolidated subsidiary – wholly owned by
Fluxys Belgium). Flux Re is a reinsurance company
under Luxembourg law and was established in October
2007. Flux Re's statutory equity, before appropriation,
fell from EUR 7.7 million as at 31 December 2022 to
EUR 5.7 million as at 31 December 2023. Net profit for
financial year 2023 totalled EUR 6.8 million, compared
with EUR 2.8 million in 2022.
Balansys
Balansys (stake consolidated using the equity method
– Fluxys Belgium holds a 50% stake). As part of
the integration of the Belgian and Luxembourg gas
markets, on 7 May 2015 Fluxys Belgium and the Luxem-
bourg transmission system operator Creos Luxembourg
set up the company Balansys, a joint venture in which
Fluxys Belgium and Creos Luxembourg each have a
50% stake. On 1 June 2020, the company took over
the commercial balancing activities of the integrated
Belgian-Luxembourg gas market.
Fluxys hydrogen & Fluxys c-grid
Fluxys hydrogen (a consolidated subsidiary wholly
owned by Fluxys Belgium) was established as a
subsidiary in 2023 with a view to becoming Belgium's
hydrogen transmission network operator and thus
support industry in its efforts to make the transition to
a low-carbon economy.
Fluxys c-grid (a consolidated subsidiary in which Fluxys
Belgium holds a 77.5% stake) was established as a sub-
sidiary in 2023 with a view to becoming CO
2
transmission
network operator on Belgian territory and thus support
industry in its efforts to make the transition to a low-
carbon economy.
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Fluxys Belgium NV –
2023 results (Belgian
GAAP): proposed allocation
of profits
Fluxys Belgium NV's net profit totalled EUR 79.5 million,
compared with EUR 84.0 million in 2022.
At the Annual General Meeting on 14 May 2024, Fluxys
Belgium will propose a gross dividend of EUR 1.40 per
share.
Taking into account a profit of EUR 93.1 million carried
over from the previous financial year and a withdrawal of
EUR 27.5 million from the reserves, the Board of Direc-
tors will propose to the Annual General Meeting that the
profits be allocated as follows:
• EUR 98.4 million as a dividend payout and
• EUR 101.7 million as profit to be carried forward.
If this profit allocation proposal is adopted, the total gross
dividend for financial year 2023 will be EUR 1.40 per
share. This amount will be payable as of 22 May 2024.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Indicators
Prosperity contribution (in millions of EUR) 2023 2022 2021 2020
Added value from continuing operations 491.3 477.0 438.9 427.1
Personnel 135.2 132.9 112.5 110.5
Shareholders (dividend) 98.4 97.0 96.3 91.3
Society (taxes) 31.1 35.1 36.9 37.2
Suppliers 194.3 176.7 155.6 149.3
Financial institutions (interest)
32.3 35.3 36.3 38.8
Financial ratios 2023 2022 2021 2020
Solvency
Ratio of (i) net financial debt and (ii) the sum of equity and net
financial debt
26% 43% 57% 58%
Interest coverage
Ratio of (i) the sum of FFO* and interest expenses and
(ii) interest expenses
17.07 21.39 6.75 5.61
Net financial debt*/extended RAB*
Ratio of (i) net financial debt and (ii) extended RAB
7% 17% 28% 28%
FFO*/net financial debt
Ratio of (i) FFO and (ii) net financial debt
251% 144% 25% 20%
RCF*/net financial debt
Ratio of (i) RCF and (ii) net financial debt
206% 125% 13% 10%
Glossary
EBIT: Earnings Before Interest and Taxes or operat-
ing profit/loss, plus earnings from associates and joint
ventures and dividends received from unconsolidated
entities. EBIT is used as a reference to monitor the
operational performance of the group over time.
EBITDA: Earnings Before Interest, Taxes, Deprecia-
tion and Amortisation or operating profit/loss, before
depreciation, amortisation, impairment and provisions,
plus earnings from associates and joint ventures and
dividends received from unconsolidated entities.
EBITDA is used as a reference to monitor the oper-
ational performance of the group over time, without
taking non-cash costs into account.
Net financial debt: interest-bearing liabilities (includ-
ing lease debts), less regulatory assets, cash linked to
early refinancing transactions and 75% of the balance
of cash, cash equivalents and short- and long-term cash
investments (the remaining 25% is considered a buffer
reserve for operational purposes (working capital) and
is therefore deemed unavailable for investments). This
indicator gives an idea of the amount of interest-bear-
ing liabilities that would remain if all available cash were
used to repay loans.
Solvency: The ratio between net financial debt and
the sum of equity and net financial debt indicates
the strength of the Fluxys Belgium group’s financial
structure.
Interest coverage: The ratio between FFO before
interest expenses and interest expenses represents
the group’s capacity to cover its interest expenses via
its operating activities.
Net financial debt/Extended RAB: This ratio expresses
the share of the extended RAB financed by external
debt.
FFO/Net financial debt: This ratio is used to determine
the group’s capacity to pay off its debts based on cash
generated by its operating activities.
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Net financial debt (in millions of EUR) 2023 2022 2021 2020
Net financial debt 219.4 493.8 846.0 873.1
Breakdown
Debt capital market 699.0 700.0 699.1 692.7
Bank loans 240.0 262.3 286.8 310.6
Related parties 187.0 210.3 233.6 257.0
75% of cash and other financial assets -906.2 -678.2 -373.5 -393.1
Weighted average maturity as at 31 December 7.0 8.1 9.2 10.2
RAB and WACC 2023 2022 2021 2020
RAB* (in millions EUR)
Transmission 2,046.6 2,059.1 2,047.5 2,086.9
Storage 228.0 228.0 228.8 235.6
LNG terminalling 311.0 305.7 303.0 302.7
Property, plant and equipment outside RAB (in millions EUR) 432.9 417.7 410.4 420.3
Extended RAB* 3,018.6 3,010.6 2,989.7 3,045.4
WACC* before tax (in %)
Transmission 4.69 4.88 4.92 4.88
Storage 4.87 5.06 5.09 5.04
LNG terminalling 5.36 4.83 4.99 5.14
RCF/Net financial debt: This ratio is used to determine
the group’s capacity to pay off its debts based on cash
generated by its operating activities after payment of
dividends.
FFO: Funds from Operations or profit/loss from con-
tinuing operations, excluding changes in regulatory
assets and liabilities, before depreciation, amortisation,
impairment and provisions, plus dividends received
from associates and joint ventures and unconsoli-
dated entities, minus net financial expenses and tax
payables. This indicator reflects the cash generated by
operating activities and therefore the group's ability to
repay its debts, make investments and pay dividends
to investors.
RCF: Retained Cash-Flow or FFO, less dividends paid.
This indicator reflects the cash generated by operating
activities, but after payment of dividends, and thus
reflects the group's net capacity to repay its debts, as
well as to make investments.
RAB: Average Regulated Asset Base or average value
of the regulated asset base for the year. The RAB is
a regulatory concept that corresponds to the basis
of regulated assets on which the regulatory return is
allocated, as regulated by CREG.
Other investments in property, plant and equipment
outside the RAB: The average of the cumulative invest-
ments in the Zeebrugge LNG terminal expansions and
in the non-regulated activities.
Extended RAB: Total RAB and other investments in
plant, property and equipment outside RAB.
WACC: Weighted Average Cost of Capital, reflects the
return allowed by the regulation on the RAB.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Fluxys Group businesses
Our structure
and governance
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Our shareholders
Shareholding as at 28 March 2024
15.22 % 77.38 % 3.44 % 1.97 % 1.31 % 0.67 %
Energy
Infrastructure
Partners Publigas
Federal
Holding and
Investment
Company
AG
Insurance Ethias
Personnel and
management
Fluxys
Listed shares
(Euronext)
Fluxys
Belgium
Golden share
Belgian State
10.00 %
90.00 %
Fluxys Belgium is a public limited company and is part
of the Fluxys Group. Fluxys Belgium's capital is held by
the following entities:
• Fluxys, a public limited liability company under
Belgian law, holds a capital interest of 90%. This
stake is divided between class B shares (83.29%)
and class D shares (6.71%).
• The public holds 10% of the shares in Fluxys
Belgium (class D).
• The Belgian State holds one share (the 'golden
share').
The total number of shares is 70,263,501. All shares are
entitled to dividends.
The shares are issued in the following classes: B, D and
the 'golden share':
• Class B shares are and will remain registered shares.
• Class D shares are registered or dematerialised at
the discretion of the shareholder who will bear any
conversion charges.
• Class B shares are automatically converted into
class D shares when they are transferred to a third
party.
• 16.71% of the shares are listed on Euronext, 6.71% of
them are held by Fluxys and the remaining 10% are
held by the public.
• The golden share held by the Belgian State gives
the federal government special rights should Fluxys
Belgium consider selling strategic infrastructure
whose sale would – in the opinion of the relevant
minister, who represents the Belgian State –
compromise the country's energy interests. For
more details about the rights attached to the
Belgian State's 'golden share', please refer to the
Corporate Governance Declaration, 'Voting rights
and special powers'.
On 21 February 2023, CDPQ relinquished its entire stake
in the parent company Fluxys, meaning that its share-
holder structure at the time of writing is as follows:
• Publigas manages the interests of
Begian municipalities in Fluxys.
• Energy Infrastructure Partners (EIP), through
its Luxembourg subsidiary Neon Holding SARL,
is a Switzerland-based asset manager focus-
ing on long-term investments in high-qual-
ity large-scale renewable energy projects and
in system-critical energy infrastructure.
• AG Insurance is a Belgian insurance company that
is part of the international insurance group Ageas.
• Ethias is a Belgian insurance group whose
main shareholders are the Belgian Federal
State, the Walloon Region, the Flemish Region
and the cooperative society EthiasCo.
• The Federal Holding and Investment Com-
pany is a federal Belgian holding company set
up to manage, on behalf of the Belgian State,
shareholdings in public and private companies
of strategic economic importance to Belgium.
• Since 2012, Fluxys Group employees and
management have had multiple opportu-
nities to become Fluxys shareholders.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
100 % 100 %99.99 %
Fluxys
Belgium
Fluxys c-grid (consolidated subsidiary – 77.5% held
by Fluxys Belgium, 10% by Pipelink, 10% by Socofe,
2.5% by FPIM-SFPI). Fluxys c-grid was etablished as a
subsidiary in 2023 to become the operator of the CO
2
transmission infrastructure on the Belgian territory to
support the industry in its efforts to make the transition
to a low-carbon economy.
Fluxys hydrogen (consolidated subsidiary - wholly
owned by Fluxys Belgium). Fluxys hydrogen was estab-
lished as a subsidiary in 2023 to become the operator
of the hydrogen transmission infrastructure on the Bel-
gian territory to support the industry in its efforts to
make the transition to a low-carbon economy.
Fluxys LNG (consolidated subsidiary – Fluxys Belgium
holds a 99.99% stake and Flux Re a 0.01% stake). Fluxys
LNG is the owner and operator of the Zeebrugge LNG
terminal and sells terminalling capacity and associated
services.
Flux Re (consolidated subsidiary – wholly owned by
Fluxys Belgium). Flux Re is a reinsurance company
under Luxembourg law.
Balansys (stake consolidated using the equity method
– Fluxys Belgium holds a 50% stake). As part of the
2015 integration of the Belgian and Luxembourg gas
market, Fluxys Belgium and Creos Luxembourg (the
Luxembourg transmission system operator) set up
the company Balansys, a joint venture in which Fluxys
Belgium and Creos Luxembourg each have a 50%
stake. Balansys has been the operator responsible for
balancing activities for the integrated Belgian-Luxem-
bourg gas market since 2020.
77.50 % 50 %
Our subsidiaries
Fluxys
hydrogen
Flux ReFluxys LNGFluxys c-grid Balansys
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Our governance
Commitment to sustainability
Integral part of our strategic framework. Fluxys
Belgium's commitment to sustainability is an integral
part of our integrated strategic framework to acceler-
ate the energy transition as an essential infrastructure
company.
In 2023, Fluxys Belgium deepened and formalised its
ESG sustainability approach with its stakeholders on
the basis of a double materiality analysis in line with
the EU Corporate Social Responsibility Directive. That
process established indicators and time-bound targets
for each material ESG domain.
Creating value in a long-term perspective. In our
sustainability approach, we take a long-term view,
setting out the path to value creation in its various forms
within the ecosystem in which we operate. Specifically
with regard to the energy transition, we build on our
solid experience to develop new business activities
driven by the opportunities the transition offers.
Company-wide project. The development of our
sustainability approach took shape as a company-wide
project in intensive interaction between the manage-
ment, the departments involved, our stakeholders,
the business owners of the material ESG domains, the
Audit and Risk Committee and the Board of Directors.
The Board of Directors, as the company's most senior
management body, is responsible for the sustainability
approach as an integral component of the company's
strategic framework.
Fleshed out in corporate objectives. Fluxys Belgium
fleshes out its strategy and commitment to sustainability
through corporate objectives in various material ESG
domains, which are translated every year into personal
objectives in the performance management cycle.
The performance-related remuneration of the Manag-
ing Director and CEO and of Management Team BE
is based on the extent to which these objectives are
achieved. This is evaluated by the Board of Directors
based on advice from the Appointment and Remuner-
ation Committee. The achievement of objectives also
determines the performance-related remuneration paid
to Fluxys Belgium employees. Collective bargaining
agreement CAO/CCT 90, which applies to employees,
also includes incentives aimed at, among other things,
reducing Fluxys Belgium's greenhouse gas emissions
and improving energy efficiency.
More information about corporate governance
at Fluxys Belgium can be found in the Corporate
Governance Declaration from page 133.
Governance structure
A number of advisory bodies have been established
within the Board of Directors to assist the Board in its
tasks: the Audit and Risk Committee, the Corporate
Governance Committee, and the Appointment and
Remuneration Committee.
The Board of Directors has delegated the daily man-
agement of Fluxys Belgium and has granted special
powers to one of its members, who is named the
Managing Director and is also the company's Chief
Executive Officer (CEO). The Managing Director
is authorised to entrust certain aspects of the daily
management or their specific powers to a Management
Team BE.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Audit and Risk Committee
• Daniël Termont, Chairman
• Sabine Colson
• Laurent Coppens
• Cécile Flandre
• Anne Leclercq
• Wim Vermeir
• Sandra Wauters
• Pascal De Buck, Managing Director and
CEO, invited in an advisory capacity
Nicolas Daubies, Dpt. Director Group General Counsel
& Company Secretary, acts as secretary to the Audit
and Risk Committee.
Corporate Governance Committee
• Sabine Colson, Chairman
• Laurent Coppens
• Valentine Delwart
• Sandra Gobert
• Roberte Kesteman
• Anne Leclercq
• Josly Piette
• Pascal De Buck, Managing Director and
CEO, invited in an advisory capacity
Nicolas Daubies, Dpt. Director Group General Coun-
sel & Company Secretary, acts as secretary to the
Corporate Governance Committee.
Our Board of Directors as at 28 March 2024
Board of Directors
• Andries Gryffroy, Chairman of the Board of Directors
• Jean-Claude Marcourt, Vice-Chair-
man of the Board of Directors
• Pascal De Buck, Managing Director and CEO
• Abdellah Achaoui
• Sabine Colson*, Chairman of the
Corporate Governance Committee
• Laurent Coppens
• Valentine Delwart*
• Leen Dierick
• Cécile Flandre*
• Sandra Gobert*
• Gianni Infanti
• Ludo Kelchtermans
• Roberte Kesteman*
• Anne Leclercq*
• Josly Piette
• Daniël Termont, Chairman of the
Audit and Risk Committee
• Koen Van den Heuvel, Chairman of the
Appointment and Remuneration Committee
• Wim Vermeir
• Geert Versnick
• Sandra Wauters*
• Tom Vanden Borre, federal government
representative acting in an advisory capacity
• Maxime Saliez, federal government
representative acting in an advisory capacity
Nicolas Daubies, Dpt. Director Group General
Counsel & Company Secretary, acts as secretary to
the Board of Directors.
* Independent director within the meaning of the Gas Act and as per the Belgian Code on Corporate Governance.
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Appointment and Remuneration
Committee
• Koen Van den Heuvel, Chairman
• Valentine Delwart
• Cécile Flandre
• Sandra Gobert
• Gianni Infanti
• Roberte Kesteman
• Geert Versnick
• Pascal De Buck, Managing Director and
CEO, invited in an advisory capacity
Anne Vander Schueren, HR Director, acts as secretary
to the Appointment and Remuneration Committee.
Managing Director and CEO and
Management Team BE
Managing Director and CEO
Pascal De Buck
Management Team BE
• Arno Büx, member of the Management
Team BE and Chief Commercial Officer
• Christian Leclercq, member of the Manage-
ment Team BE and Chief Financial Officer
• Peter Verhaeghe, member of the Manage-
ment Team BE and Chief Technical Officer
Nicolas Daubies, Dpt. Director Group General Counsel
& Company Secretary, acts as secretary to the
Management Team BE
The Management Team BE is assisted by an
Executive Committee composed as follows:
• Damien Adriaens, Dpt. Director
Commercial Regulated
• Nicolas Daubies, Dpt. Director Group
General Counsel & Company Secretary
• Raphaël De Winter, Director nextgrid
• Jan Van de Vyver, Dpt. Director Installations & Grid
• Rafaël Van Elst, Director Construc-
tion, Engineering & Gas Flow
• Anne Vander Schueren, HR Director
• Leen Vanhamme, Director Trans-
formation & Sustainability
• Erik Vennekens, Director Digital
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Enterprise Risk Management
Fluxys Belgium's Enterprise Risk Management (ERM)
system is based on ISO 31000 and is integrated into the
company’s strategy, business decisions and activities.
The risk management system covers all business risks,
including risks related to the material ESG domains
for the company. The system maps the impact that
risks can have from different perspectives in the short,
medium and long term: the impact on people and the
environment and the impact on Fluxys Belgium's value
creation, operational performance and reputation.
The risk management system assesses the risks and
opportunities arising from climate change by trans-
lating the 2030, 2050 and 2100 deadlines to three
time perspectives: the short term (0-1 years), the
medium term (2-5 years) and the long term (5 -10 years).
In this way, risks in Fluxys Belgium's own activities and
in the value chain, risks related to natural disasters
or adverse weather conditions and related to CO
2
emission volumes and prices, as well as reputational
risks are identified and quantified.
In addition, opportunities linked to new market devel-
opments for hydrogen and CO
2
capture and storage
are analysed for the impact they can have on the com-
pany's financial performance. Risks and opportunities
are assessed based on a combination of the magnitude
of the impact and the likelihood that the impact will
materialise.
The risks and opportunities associated with the material
ESG domains for Fluxys Belgium are documented in the
section entitled Our ESG performance, p. 65.
Process actors
Risk Management organises the risk management
system and reports annually to the Audit and Risk
Committee. All our departments identify, analyse
and evaluate their risks and report on how risks are
managed.
They work with management to map out the main risks,
the controls and the mitigating measures. The Audit
and Risk Committee examines the risk management
system and all key risks, controls and mitigating meas-
ures every year.
Our risk management
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55
First line Second line Third line
The first line of defence: the
departments themselves.
The departments are
responsible for their risks
and ensure effective controls
and measures.
The second line of defence:
the Risk and Compliance
teams as well as, in certain
cases, the Finance, Health,
Safety and Environment, and
ICT Security departments.
They guide those in the first
line in risk management,
compliance with regulations,
guidelines and internal rules,
budget monitoring and the
security of staff, facilities, ICT
systems and information.
The independent third
line of defence: Internal
Audit, which is responsible
for monitoring business
processes.
Internal Audit performs risk-
based audits to monitor the
effectiveness and efficiency
of the internal control
system and processes. The
department also performs
compliance audits to
ensure that guidelines and
processes are consistently
applied.
Internal control process
The three lines of defence model is the internal control model used to manage our risks and carry out controls.
56
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Risks (R) and opportunities (O) Description
R Declining role of natural gas in the
energy mix and the impact on the
value of our assets
The declining role of natural gas in the future energy mix could lead
to part of Fluxys Belgium’s infrastructure no longer being used.
R Global geopolitical developments Geopolitical instability that could have an impact on the gas
transmission sector, resulting in political, social and economic
instability that could evolve into a crisis scenario.
O
O
O
Hydrogen market development
CO
2
market development
Biomethane market development
Fluxys Belgium intends to play a key role in Belgium in the energy
transition to a low-carbon economy through innovative projects and
major infrastructure investments in: (a) terminalling, transmission
and storage of low-carbon molecules (hydrogen, biomethane, etc.),
(b) CO
2
transmission and terminalling.
R Development of the hydrogen and
CO
2
markets is not geared to the
necessary investment needs
Fluxys Belgium may run the risk of not achieving its transition
targets. It may also run the financial risk that market developments
for H2 and CO
2
are not moving at the same pace as the investment
efforts that need to be made.
R Failure to achieve our emission
targets
Fluxys Belgium’s activities generate greenhouse gas emissions
(methane and CO
2
) that contribute to climate change. Fluxys may run
the financial and reputational risk of not achieving its greenhouse
gas emission reduction targets (methane and CO
2
).
R Industrial incidents and cyber attacks
on facilities and ICT infrastructure
Industrial incidents and some cyber incidents can damage
Fluxys Belgium’s infrastructure, endanger people’s safety, cause
unavailability impacting service continuity and result in financial
consequences.
R Damage to the ecosystems and
biodiversity in and around our
facilities
Certain Fluxys Belgium activities can harm ecosystems and
biodiversity. This can lead to financial risks (such as sanctions) and
reputational risks.
R Failure to comply with regulations,
underlying frameworks and standards
Increasing regulations requiring the introduction of underlying
frameworks and standards - Financial and reputational impact of
failure to meet these requirements.
R Human capital management: risks
related to employee health, diversity,
equal opportunities and talent
development
The inability to attract, retain and secure talent in a changing
environment and a lack of skills in and knowledge of new
developments can have a negative impact on business efficiency.
R Risks related to ethical and honest
conduct and corruption
A lack of ethics or proven corruption at Fluxys Belgium and its value
chain can have a negative impact on the company’s commercial
reputation and/or financial results.
Our main risks and opportunities
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Global geopolitics
Since the outbreak of war in Ukraine, various sanc-
tions have been imposed against Russia and Belarus,
as well as against Russian and Belarussian companies.
In this context, Fluxys Belgium is not active on the Rus-
sian market and has no investments in Russian compa-
nies. Fluxys Belgium therefore sees no indications of
impairment losses.
In its activities, Fluxys Belgium conducts business with
Russian companies in accordance with European and
national gas regulations and operates in full compliance
with the sanctions regime.
Fluxys LNG is the company with the largest exposure
to a Russian-controlled counterparty through long-
term contracts. However, to date there have been no
changes in regular flows or in payments.
A possible change in the sanctions regime and the
possible termination of long-term contracts could lead
to a temporary reduction in Fluxys LNG’s economic
contribution to the Fluxys Belgium group. Any impacted
capacity could be offered again to the market but there
remains a risk that such capacity could only be partially
resold. In this case, the regulatory framework for termi-
nalling activity is such that the regularisation account
provides a certain buffer for less revenue and there is
a limited risk for Fluxys LNG of not achieving the pre-
determined return.
Based on the current situation, Fluxys Belgium's
net result is generally very limited in its exposure to
declines in volume, given the regulated nature of its
activities. Depending on how the war develops and
on the duration and scope of the sanctions, Fluxys
Belgium may temporarily face an adverse impact on
cash income if, for example, customers default on pay-
ments for booked capacity.
Insurance
Fluxys Belgium’s risk management process assesses
the likelihood of the main risks connected to its activi-
ties and estimates the potential financial impact thereof.
Depending on the possibilities and the market condi-
tions, the group mainly covers these risks via the insur-
ance market. The comprehensive cover is in line with
European best practices in the field and includes the
different areas in which risks may materialise:
• protection of facilities against various types of
material damage; in specific cases, facilities
also have additional cover for loss of earnings
as a result of unavailability due to damage;
• protection against third-party liability by
means of comprehensive, multi-level cover;
• staff programme: mandatory insurance cover (occu-
pational accidents) and staff healthcare programme;
• protection of the vehicle fleet by
means of appropriate insurance.
In some cases, risks are partially reinsured by Flux Re,
a wholly-owned subsidiary of Fluxys Belgium, or are
partially self-retained, for example by applying appro-
priate deductibles. Flux Re mainly reinsures material
and financial risks and, to a limited extent, general and
environmental liability (not life or health risks).
The fact that Flux Re is fully consolidated in the group's
accounts means that the cost of damage covered by
the group's reinsurance policy are booked to the con-
solidated result. Flux Re also reinsures certain risks
facing other Fluxys Group companies. Where appropri-
ate, compensation paid in the event of damage claims
involving these parties will impact Fluxys Belgium’s
IFRS consolidated result.
Non-insurable risks are covered by appropriate con-
tractual clauses, financial guarantees and regulatory
mechanisms.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Europe
Since 3 March 2011, the European natural gas market has
been regulated by the EU's third energy package:
• Directive 2009/73/EC of the European Par-
liament and of the Council of 13 July 2009
concerning common rules for the internal
market in natural gas and repealing Direc-
tive 2003/55/EC (the Third Gas Directive);
• Regulation (EC) No 715/2009 of the European
Parliament and of the Council of 13 July 2009 on
conditions for access to the natural gas trans-
mission networks and repealing Regulation (EC)
No 1775/2005 (the Second Gas Regulation);
• Regulation (EC) No. 713/2009 of the European
Parliament and of the Council of 13 July 2009
establishing an Agency for the Cooperation
of Energy Regulators (ACER Regulation).
In late 2021, the European Commission published its
Proposal for a Directive of the European Parliament and
of the Council on common rules for the internal markets
in renewable and natural gases and in hydrogen, as
well as its Proposal for a Regulation of the European
Parliament and of the Council on the internal markets
for renewable and natural gases and for hydrogen.
These texts are intended to replace respectively the
3
rd
Gas Directive and 2
nd
Gas Regulation by introducing
a regulated framework for the European renewable gas
and hydrogen market, similar to the existing framework
for natural gas. An agreement between the Council and
Parliament was reached on these texts in December
2023 and January 2024. It is expected that these texts
will be finalised and adopted in the first half of 2024.
Belgium
Within the current legal and regulatory framework, a
regulated system is applied to natural gas transmis-
sion (both domestic and border-to-border), natural gas
storage and LNG terminalling. As required by EU leg-
islation, the Belgian market is supervised and overseen
by independent regulators. The supervisory authority for
the regulated activities of the Fluxys Belgium group is
the federal regulator, the Commission for Electricity and
Gas Regulation (CREG).
On 11 July 2023, a law on the transmission of hydrogen
by pipeline was passed, which then entered into force
on 4 August 2023. This Hydrogen Act sets out the pro-
cedure for certifying and appointing a hydrogen trans-
mission system operator, which will be responsible for
planning, developing and operating the future Belgian
hydrogen transmission network featuring regulated and
third-party access.
The Hydrogen Act:
• provides for the vertical unbundling of hydrogen
transmission from the production and supply of
hydrogen, natural gas, biogas, biomethane, other
forms of synthetic methane and electricity;
• guarantees non-discriminatory access to the hydro-
gen transmission system for all interested parties;
• sets out, among other things, the rules and proce-
dures for the preparation of the grid development
plan and the setting of regulated grid tariffs;
• designates CREG as the regula-
tor for hydrogen transmission;
• establishes the procedure for grant-
ing hydrogen transmission permits;
• provides for exemptions for exist-
ing hydrogen networks; and
• mandates the hydrogen transmission system opera-
tor to establish quality standards for the transmission
of hydrogen via the hydrogen transmission system,
standards to be validated by the Minister for Energy,
taking into account all relevant European standards,
and after consulting the relevant stakeholders.
In late November 2023, Fluxys Hydrogen SA, a wholly
owned subsidiary of Fluxys Belgium, submitted its appli-
cation to be certified and appointed as hydrogen trans-
mission system operator.
Legal and regulatory
framework
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In January 2024, CREG launched a consultation on its
draft decision that ended on 14 February 2024. In this
draft decision, CREG notes, on the basis of the certifica-
tion request submitted and the documents in the file, that
Fluxys Hydrogen currently complies with the principles
relating to the certification conditions set out in Article
10 of the Hydrogen Act and the tasks of the hydrogen
transmission system operator referred to in Article 13
of this law.
The appointment of the hydrogen transmission system
operator is expected in the first months of 2024.
Legislation
The Belgian Gas Act forms the general basis of the reg-
ulatory framework and incorporates the main principles
that apply to the activities of Fluxys Belgium and Fluxys
LNG as operators of the transmission system, natural
gas storage facilities and LNG terminalling facilities.
The third package of legislative measures, in particular
the 3
rd
Gas Directive, was transposed into Belgian leg-
islation (law of 8 January 2012 amending the Gas Act
adopted on 21 January 2012):
• The legislation provides for a procedure for certi-
fying operators of the transmission system, natural
gas storage facilities and LNG terminalling facilities.
The aim of this certification is to verify compliance
with the requirements that operators be vertically
unbundled from energy suppliers or producers
(ownership unbundling). On 27 September 2012,
CREG certified Fluxys Belgium as a transmission
system operator that works entirely separately from
natural gas suppliers and producers. In early 2023,
CREG confirmed that, provided certain conditions
are met, Energy Infrastructure Partners becom-
ing a shareholder in the parent company Fluxys
did not give rise to a recertification procedure.
• In addition to the certification procedure, the
procedure for appointing operators of the transmis-
sion system, natural gas storage facilities and LNG
terminalling facilities by Ministerial Decree remains
unchanged. As a result, on 23 February 2010 Fluxys
Belgium was appointed operator of the natural gas
transmission system and of the natural gas storage
facility, and Fluxys LNG was appointed operator of
the LNG facility, each for a renewable 20-year term.
• CREG is also responsible for developing the
methodology for transmission, storage and LNG
terminalling tariffs after having undertaken a
public consultation on the subject. Operators'
tariff proposals must be approved by CREG.
New EU regulations adopted against
the backdrop of the European
energy crisis in 2022
Against the backdrop of the gas market in 2022, a
number of legislative texts were adopted at European
Union level to ensure security of supply for the EU and
its Member States:
• Regulation (EU) 2022/1032 of the European Parlia-
ment and of the Council of 29 June 2022 amending
Regulations (EU) 2017/1938 and (EC) No 715/2009
with regard to gas storage; Late 2022, Fluxys
Belgium was certified as a storage facility operator
in accordance with Article 2 of that Regulation;
• Council Regulation (EU) 2022/2576 of 19 December
2022 enhancing solidarity through better coor-
dination of gas purchases, reliable price bench-
marks and exchanges of gas across borders;
• Council Regulation (EU) 2022/2578 of 22
December 2022 establishing a market correc-
tion mechanism to protect Union citizens and
the economy against excessively high prices.
All of these regulations are still applicable in 2024. .
One of the aims of these various EU regulations is to
optimise the use of natural gas infrastructure with a view
to contributing to the security of the natural gas supply.
The Fluxys Belgium group supports this objective and has
made the appropriate adjustments to the regulated con-
tracts in order to transpose the various measures pro-
vided for by these regulations.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Setting tariffs
General remarks
The decisions laying down the tariff methodology for
the period 2024-2027 for the natural gas transmission
system, the natural gas storage facility and the LNG
facility were adopted by CREG on 30 June 2022. This
methodology includes the rules which system opera-
tors must comply with when preparing, calculating and
submitting tariffs and which the regulator itself will use
for processing these tariff proposals.
The 2024-2027 tariff proposal for transmission ser-
vices, submitted by Fluxys Belgium on 22 December
2022 and based on that methodology and the net-
work code for tariffs (TAR-NC)
1
, was amended and the
amended version was approved by CREG on 6 April
2023. The approved tariffs are valid for a period of four
years, subject to a revision due to the regulatory assets
and liabilities not developing in the way forecast in the
tariff proposal.
The 2024-2027 amended tariff proposal for storage
services was approved by CREG on 21 December 2023.
It includes a 20% tariff reduction.
The last updated tariff proposal for terminalling services
was approved by CREG on 22 June 2023. This tariff
proposal made it possible to introduce a new pricing
approach for truck loading operations.
Agreement between Fluxys Belgium
and CREG on fair margin
Fluxys Belgium and CREG reached an agreement in
February 2024 to propose, through a public consul-
tation to the market, a number of changes to the tariff
methodology for the natural gas transmission grid, the
natural gas storage facility and the LNG facility for the
2024-2027 regulatory period.
The tariff methodology, adopted in June 2022, provides
for the use of a risk-free rate of 1.68% to calculate the
margin for the four years of the 2024-2027 regulatory
period. In the current context of high volatility of interest
rates, an overall upward trend over the past two years
and a particularly high inflation in 2022, a number of
changes are urging themselves to ensure a fair return
on the capital invested in the regulated assets for the
network operators and to enable them to make the
investments for the performance of their duties.
The public consultation on the changes to the tariff
methodology will run from 14 March to 14 April 2024.
The impact of the proposed changes will be covered by
the regularisation account. The tariffs set by CREG for
the period 2024-2027 will therefore remain unchanged
at this stage.
Principles
The tariffs must cover the estimated authorised costs
necessary to be able to efficiently provide the regulated
services. The basis for this calculation is accounting
according to the Belgian accounting rules (Belgian
GAAP). The estimated authorised costs include the
operating costs, financial expenditure and regulated
return.
Operating costs
Operating costs are divided into:
• manageable costs, for which efficiency gains
or losses are distributed proportionately between
Fluxys Belgium (rise or fall in authorised profits) and
regulatory assets or liabilities (increase or decrease
in future tariffs), based on a decreasing scale;
• non-manageable costs, for which devia-
tions from the estimated value are fully allo-
cated to the regulatory assets or liabilities.
This encourages Fluxys Belgium to perform its activities
in the most efficient way possible. Every saving vis-à-vis
the estimated and authorised budget for manageable
costs has a positive impact on pre-tax gross profits. On
the other hand, exceeding budgets negatively affects
the profit for the period.
The following are considered non-manageable costs:
depreciation, costs relating to other regulated activities,
subsidies, taxes, duties and expenses relating to the
purchase of commodity products for the operation of
the system.
Personnel expenses, business expenses and miscella-
neous goods and services are considered to be man-
ageable costs.
Financial expenditure
Financial expenditure relates to net financial costs,
i.e. after deduction of financial revenue. Therefore,
all actual and reasonable encountered financial costs
relating to debt financing for regulated activities are
included in the tariffs.
Regulated return
The regulated return is the return on equity invested as
authorised by the regulatory provisions governing the
return on capital investment. This is calculated using
1. On 16 March 2017, a network code for tariffs (TAR-NC) was adopted by European Commission Regulation (EU) No 2017/460. This aims to achieve
a harmonised transmission tariff methodology for gas transmission in Europe and lays down a range of requirements regarding publication of data
and consultation on tariffs.
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a remuneration rate applied to the average annual
value of the regulated assets (average Regulatory Asset
Base, or RAB). This RAB, based on the calculations
under Belgian accounting standards, varies from year
to year, taking into account new investments, decom-
missioning, authorised depreciation and changes in
operating capital.
This remuneration rate for the period 2020-2023
is made up of two components determined by the
equity/RAB ratio (= factor S).
1. For the part of the equity up to and including
40% of the RAB, the following applies:
average RAB in year n x S
2
x [(OLO n) +
(ß x risk premium)] x (1+α)
The remuneration rate (in %) as established by
CREG for year n is equal to the sum of the risk-
free interest rate (based on 10-year Belgian linear
bonds (OLO)) and a premium for the risk of the
shares market, weighted with the applicable
beta factor. The reference financial ratio of 40%
is applied to the average value of the Regulatory
Asset Base (RAB) to calculate the reference equity.
The parameters for the tariff period
2020-2023 are as follows:
– OLO n = for year n, the risk-free interest
rate of 2.4%, based on 10-year OLO;
– ß (system operator risk vis-à-vis global
market risk) = 0.65 for transmission;
0.78 for storage and terminalling;
– risk premium = 3.5%;
– α (illiquidity premium) = 20% for trans-
mission, storage and terminalling.
2. For the part of the equity that exceeds 40%,
the following applies:
average RAB in year n x (S - 40%) x (OLO n +
70 basis points)
CREG encourages a ratio between equity and
regulated asset base that is as close as possi-
ble to 40%. As a result, the part of the reference
equity that exceeds 40% of the regulated asset
base is remunerated at a lower rate: the risk-free
interest rate, set at 2.4%, for the regulatory period
2020-2023, based on 10-year Belgian linear
bonds (OLO) and a premium of 70 basis points.
The methodology also provides for a specific level of
authorised margin for new facilities or extensions to facil-
ities to promote security of supply, or for new facilities or
extensions to storage or LNG facilities. The remuneration
of the LNG facilities combines a RAB x WACC formula for
the initial and replacement investments of the terminal
with an IRR (Internal Rate of Return) formula for extension
investments undertaken since 2004. CREG establishes
a maximum IRR per investment, which Fluxys LNG may
not exceed to ensure the attractiveness and competi-
tiveness of the LNG terminal.
The principles of the IRR model for the extension invest-
ments by Fluxys LNG were approved by CREG and
confirmed in its subsequent decisions.
Finally, in addition to the incentive relating to controlling
manageable costs, incentives for the tariff period 2020-
2023 may be granted to the system operator to encour-
age it to:
• support market integration and security of supply;
• enhance its performance;
• carry out vital research and development activities;
• play an active role in the energy transition;
• boost the quality of its services and stim-
ulate additional sales of capacity.
2. Capped at 40%.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our profile
Annual settlement
Every year, a settlement is made which compares the
estimated amounts with the actual ones. These differ-
ences, excluding incentives positively or negatively
affecting the margin, are recognised as a regulatory
asset or liability in the year in which they occur. This
settlement applies to the various aspects of the tariff
calculation, namely:
• the estimated sales volumes used
to determine the unit tariff;
• operating costs;
• financial expenditure;
• the regulated return.
This results in a regulatory liability (if for example the
actual volumes exceed the estimates or if the oper-
ating costs, financial expenditure or regulated return
are lower than expected) or a regulatory asset (in the
opposite case).
This regulatory liability or asset is taken into account in
accordance with the tariff methodology to set the tariffs
for the next regulatory periods.
When devising the 2024-2027 tariff proposal, the
natural gas transmission system operator identified
the expected development in the adjustment account
for the relevant regulatory period 2020-2023. This
includes an expected decrease in the adjustment
account towards zero by the end of 2027.
If the actual development varies considerably from that
expected, whether positively or negatively, this devia-
tion will result in an correction of the tariffs for the gas
transmission system.
A specific regulatory liability for auction premiums has
been created. This regulatory liability is allocated in
accordance with the Network Code.
Code of Conduct
The code of conduct determines the terms and condi-
tions of access to the natural gas infrastructure. These
terms and conditions constitute a set of operational
and commercial rules that form the framework within
which Fluxys Belgium and Fluxys LNG enter into con-
tracts with users of the transmission, storage and LNG
infrastructure.
Following a public consultation, CREG adopted, by
decision of 31 August 2022, a new natural gas code of
conduct that came into force in 2022.
That code of conduct states that operators (for trans-
mission, storage and LNG terminalling) must draw up
a range of documents which are subject to CREG's
approval: the access code, the services programme,
the standard agreements and the connection agree-
ments. When drawing up these documents, the sys-
tem users concerned are consulted to ensure that the
services offered are aligned as closely as possible with
market needs. Only after this consultation can the doc-
uments be submitted to CREG for approval.
Compliance officer
A compliance officer was appointed at Fluxys Belgium
and Fluxys LNG as part of ensuring compliance with their
commitments regarding non-discriminatory access to the
system. A compliance programme was drawn up with
the specific details of the rules of conduct that members
of staff must comply with regarding non-discrimination,
transparency and handling of confidential information.
Fluxys Belgium's Board of Directors and management
approved the compliance programme.
Every year, a compliance report is prepared for both
Fluxys Belgium and Fluxys LNG and the results are
published on the website: https://www.fluxys.com/en/
company/fluxys-belgium/investors
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
65
#
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#
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Our ESG
performance
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Our ESG compass:
fluxtainable
S
o
c
i
a
l
E
n
v
i
r
o
n
m
e
n
t
G
o
v
e
r
n
a
n
c
e
Employee
engagement
Employee
safety
Customer
care
Biodiversity
Learning and
talent
development
Building and
operating safe
and reliable
infrastructure
Diversity and
inclusion
Ethics, integrity
and
anti-corruption
Climate change:
reducing our own
climate impact
Climate change:
transporting the
molecules for
acarbon-neutral
future
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67
moving green safe
people responsible
Fluxtainable is our ESG compass. How do we ensure
that we develop our activities sustainably in a long-
term perspective for us and for all our stakeholders?
Fluxtainable is also our dashboard for communicating
transparently about the progress we are making in our
sustainability performance.
What is our impact on the environment and society?
Andwhat financial impact do external factors have on our
company? On this basis, together with our stakeholders,
we identified the ten material ESG topics that form the
core of our path towards sustainability. We group the ten
material ESG topics into five key domains.
accelerate the energy
transition with multi-
molecule infrastructure,
today & tomorrow
become a net zero
company and preserve
the natural capital
keep high safety
standards, in an
evolving business
encourage diversity,
talent development and
employee's engagement
conduct our business
in a responsible way
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Introduction
Following up on our previous materiality assessment,
which was carried out in 2020, Fluxys Belgium has thor-
oughly reviewed this process according to the concept
of double materiality in line with the Corporate Sustain-
ability Reporting Directive (CSRD).
The concept of double materiality involves considering
two perspectives, namely inside-out and outside-in.
The Fluxys Sustainability Department, alongside the
Internal Audit & Risk Department, took the lead when
it came to this assessment. The Sustainability Depart-
ment, the Risk Department, the business owners, the
Executive Committee and the Board of Directors were
all involved in this process.
• The Sustainability Department and the Risk
Department developed the sustainability frame-
work, held workshops, analysed the value chain
and engaged with Fluxys' stakeholders.
• The business owners and executives
identified and evaluated the impacts,
risks and opportunities (IROs).
• The Management Team worked with the busi-
ness owners to validate the workshop results as
well as the results of the value chain analysis.
The material topics were chosen on this basis.
• The Board of Directors validated
the material topics chosen.
Double materiality
assessment
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Methodology
Our double materiality assessment consisted of four
phases [ESRS 2 IRO 1] with nine supporting steps. The
entire process took place between January and Octo-
ber 2023.
Step 1: Determine the CSRD
perimeter (ESRS 1 §62-67)
The entities falling within the scope of CSRD reporting
in 2024 for the 2023 financial year are Fluxys Belgium
NV/SA, Fluxys LNG NV/SA and Flux RE NV/SA.
The assessment did not include Fluxys hydrogen NV/
SA or Fluxys c-grid, as these entities had only been
established in late 2023. In terms of materiality, these
entities do not have to be considered yet.
Balansys NV/SA is part of Fluxys’ value chain. This is
in line with the scope of the financial statements.
Step 2: Understand our ESG context
(ESRS 1 AR 9)
We investigated the environmental, social and govern-
ance (ESG) context in which Fluxys operates (i.e. regu-
latory environment, external factors, company policies,
business practices).
Step 3: Identify and classify
stakeholders (ESRS 1 §22-24 & AR 8)
Stakeholders are individuals or groups who can affect
or be affected by Fluxys’ decisions and actions.
The following stakeholders have been identified:
• Employees (social partners, senior man-
agement, association of executives)
• Directors
• Shareholders
• Financial institutions and investors
• Authorities and regulators
• Suppliers and contractors
• Customers and end users
• NGOs and affected communities
• Internal and external experts (e.g. from academia)
Module A Module B
Understanding Identify
1
Determine the
CSRD perimeter
6
Identify impacts,
risks and
opportunities
2
Understand our
ESG context
3
Identify
and classify
stakeholders
4
Develop
stakeholder
engagement plan
5
Value chain
mapping
Module C Module D
Assess Consolidation
7
Impact materialty
assessment
9
Consolidation
of assessment
results
8
Financial materialty
assessment
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Step 4: Develop a
stakeholder engagement plan
(ESRS 1 §22-24, AR 8)
In early 2023, we drew up an engagement plan for
each of the stakeholder groups identified. For each
stakeholder group, the engagement plan determined
the following:
• The selection of a representative stake-
holder sample to engage with
• The selection of relevant ESG matters to engage on
• The engagement method. There were two
types of stakeholder engagement:
– Direct engagement through sur-
veys, discussions and workshops
– Indirect engagement through the col-
lection of material ESG information from
reports, benchmarks and/or websites
The following subjects have been discussed with
stakeholders: working conditions - health and safety;
employee engagement/motivation; diversity and inclu-
sion: equal treatment and opportunities for all; training
and skills development; ethics and integrity; climate
change (energy transition and impact of emissions);
human rights in the value chain; customer care; safe
and reliable infrastructure; corporate culture; and ethics.
The expertise and knowledge of our stakeholders
allowed us to refine and validate the list of material
topics.
Step 5: Map the value chain
1
(ESRS 1 §39)
We mapped our value chain’s activities to flesh out our
own materiality assessment. In this step, we expanded
the materiality assessment to cover our entire value
chain, meaning that it encompassed not only the impact
of our own activities but also the potential impact of
those in our value chain.
Each tier within the value chain, both upstream and
downstream,
2
was analysed to identify important sec-
tors and/or companies.
The mapping process was implemented as follows:
• Upstream level 2+: analysis of the key sectors that
supply our suppliers, e.g. the plastics sector, the
steel sector, electrical materials such as cables
• Upstream level 1: analysis of key suppliers rep-
resenting the main categories in our Scope 3
• Level 0: analysis of peers
• Downstream level 1: analysis of key customers/
system users and end users and sector benchmark
This involved material ESG information from reports,
websites and publicly available materials.
This step allowed us to identify the potential material
topics in our value chain.
Step 6: Identify impacts, risks
and opportunities (IROs)
(ESRS 2 DR IRO-1)
In this step, using existing business processes as a
starting point, we identified actual and potential as
well as negative and positive sustainability impacts
applicable to our own activities over the short, medium
and long term, covering all affected stakeholders.
3
Bymeans of an analysis conducted with the business
owners and business experts, we compiled a long list
of topics. Following frequent workshops, this resulted
in a shortlist of key topics.
We also assigned an impact score for the long list of
topics (see Step 7). For the shortlist, we also assessed
the financial risks and opportunities.
Step 7: Conduct an impact
materiality assessment
(ESRS 2 DR IRO-1, §52(b))
To systematically assess impacts, we defined a scoring
system with clear criteria for the impacts, risks and
opportunities identified in Step 6.
Depending on the characteristics of the impact (i.e.
positive/ negative, actual/potential), the materiality
assessment is based on different components (ESRS
E1 §45-46).
Each impact is scored on a scale of 1 to 5 for each of the
scoring components (i.e. scale, scope, irremediability
and likelihood), depending on the defined criteria. For
example, the set criteria for calculating the scope of an
impact goes from 1 (local impact) to 5 (global impact).
The next step of the impact assessment involved
defining the materiality threshold (ESRS 1 §36&42) for
each impact, risk and opportunity. We decided to set
the threshold to 3 as according to our internal scoring
matrix, the impact becomes significant when scale,
scope, irremediability and likelihood achieve this score
(or higher) and so are considered material.
1. By ‘value chain’, we mean all activities, resources and relationships the company uses to create its products or services from design to delivery,
consumption and the end of service life.
2. The value chain encompasses actors upstream and downstream of the company. Actors upstream of the company supply products or services
that are used in the development of the company's products or services (e.g. suppliers). Entities downstream receive products or services from the
company (e.g. customers).
3. According to EFRAG standards.
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With regard to close calls (i.e. IROs falling just below or
just above the threshold), we performed an additional
review and analysis to ensure that these IROs were
included or excluded accordingly.
Step 8: Conduct a financial
materiality assessment
(ESRS 2 DR IRO-1, §52(c))
For the shortlist of key topics, we also assessed the
financial risks and opportunities. This assessment
was based on our existing risk management system.
See § 'Our Risk Management', p. 54.
In line with the European Sustainability Reporting
Standards (ESRS), Fluxys' existing risk management
system considers the likelihood and potential scale
of financial effects. Moreover, a threshold has been
set above which a risk or opportunity is defined as
financially material. We consider various scenarios that
are likely to materialise and potential financial effects
that may not already be reflected in the financial state-
ments, including:
• potential situation that a future event may
affect the cash flow generation potential;
• capitals that are not recognised as assets from
accounting and financial reporting perspectives (e.g.
natural, intellectual, social, relationship capitals);
• possible future events that may influ-
ence the evolution of such capitals.
4. Given the connection between the first two material topics, the reporting on ‘Climate change: transporting the molecules for a carbon-neutral
future’ has been included in the ‘Climate change’ section.
Step 9: Consolidate the
assessment results (ESRS 1 §21 and
ESRS 2 IRO – 2 §59)
In this step, we consolidated and grouped the results
of the materiality assessment. The final list of material
topics was validated by the Management Team and the
Board of Directors.
Our material topics
The entire assessment process and materiality list com-
piled under ESRS 1 AR 16 resulted in the following ten
material topics:
1. Climate change: transporting the
molecules for a carbon-neutral future
4
2. Climate change: our own emissions
3. Build and operate safe and
reliable infrastructure
4. Customer care
5. Employee safety
6. Employee engagement
7. Diversity and inclusion
8. Learning and talent development
9. Ethics, integrity and efforts to combat corruption
10. Biodiversity
Objectives
We have set objectives for each material topic. These
objectives are measurable and we have outlined how
they are to be monitored and reviewed, employing spe-
cific metrics. They possess a clear scope, emphasising
outcome-driven results, and are defined with underlying
assumptions. They are also time limited and science
based (in the case of environmental objectives).
The process is auditable, requiring comprehensive doc-
umentation throughout.
These objectives are explained in detail in the following
sections on our ESG performance.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Environment
Material topics linked to the environment:
Climate change ............................................................. p. 73
Transporting the molecules for ...................................... p. 73
a carbon-neutral future
Reducing our own climate impact .................................. p. 73
Biodiversity ......................................................................... p. 90
EU taxonomy for sustainable ........................... p. 83
economic activities
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Climate change
Transition plan for climate change mitigation (ESRS E1-1)
Governance model for climate change
management
For more information about Fluxys Belgium’s govern-
ance model for climate change management, see ‘Our
structure and governance’, p. 48 and ‘Our risk manage-
ment’, p. 54.
Transition plan for climate change
mitigation (ESRS E1-1)
Fluxys Belgium's transition plan is based on the ESRS
E1 requirements and sets science-based greenhouse
gas (GHG) emission reduction targets to ensure that
its business model and strategy are compatible with
the transition to a climate-neutral economy and the aim
of limiting global warming to 1.5 °C. The transition plan is
also evaluated against the taxonomy (see ‘EU taxonomy
for sustainable economic activities’, p. 83).
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Potential
Accelerate the
energy transition with
infrastructure able
to transport various
molecules, both now
and in the future
Climate change
mitigation and
adaptation:
transporting
the mole-
cules for a
carbon-neutral
future
Fluxys Belgium intends to play a
key role in Belgium in society's
energy transition to a low-carbon
economy, by means of innovative
projects and major investments in:
• the terminalling, transport and
storage of low-carbon molecules
(H2, biomethane, etc.);
• transport for the storage
and reuse of CO
2
and the
terminalling of CO
2
.
Fluxys Belgium may fail to
achieve its transition objectives.
It may also face the financial risk
of the markets for H
2
and CO
2
not
developing at the same pace as
the investments made.
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Actual
Become a net-zero
company that preserves
natural capital
Climate change
mitigation: own
emissions
Fluxys Belgium's activities
generate greenhouse gases
(CH
4
and CO
2
), which exacerbate
climate change.
Fluxys Belgium may run the
financial and reputational risk of
not achieving its greenhouse gas
emission targets (CO
2
and CH
4
).
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
The product and service portfolio
Fluxys Belgium's strategy focuses on accelerating
the energy transition and as such encompasses pro-
jects involving the transport of hydrogen and CO
2
(and
biomethane), as discussed and decided at Board level
(highest responsibility for climate-related issues). This
strategy is compatible with a sustainable economy limit-
ing global warming to 1.5 °C in line with the Paris Agree-
ment and with the goal of achieving climate neutrality
by 2050.
Thanks to the use of climate-related scenarios and out-
put from its commercial process, Fluxys Belgium can
propose a tangible infrastructure transition plan (see
'How we accelerate the energy transition', p.21). Fluxys
Belgium uses the results of its climate-related scenarios
(the Distributed Energy and Global Ambition scenarios)
as input for the carbon-neutral scenarios employed by
ENTSO-E and ENTSOG for the ten-year development
planning of the gas and electricity systems in the EU.
The scenarios picture different pathways to achieving
carbon neutrality in the EU-27 by 2050 and cutting
emissions by at least 55% by 2030.
• Distributed Energy scenario: this scenario seeks
to achieve energy autonomy based on indige-
nous renewable energy sources. It translates into
both a societal change in behaviour and a strong
decentralised drive towards decarbonisation
through local initiatives by citizens, communities and
businesses, supported by authorities. This would
maximise renewable energy generation in Europe
and lead to a significant drop in energy imports.
• Global Ambition scenario: this scenario is driven
by a global approach towards the Paris Agree-
ment targets. It translates into the development
of a wide range of renewable and low-carbon
technologies (many being centralised) and the use
of the global energy trade as a tool to accelerate
decarbonisation. Economies of scale lead to cost
reductions in technologies such as offshore wind
but imports of decarbonised energy from various
sources are also considered a viable option.
Actions relating to the development of H
2
/CO
2
transport (ESRS E1-3)
In 2023, Fluxys Belgium approved its indicative
investment plan for the period 2024-2033. This plan
incorporates decarbonisation projects and the grad-
ual reconfiguration of our existing network into a car-
bon-neutral energy system.
Figure: The results of the Distributed Energy and Global Ambition scenarios for Belgium
show energy demand gradually shifting away from fossil fuels and being replaced
by electricity, biomass and biomethane, synthetic methane, biofuels, hydrogen
and hydrogen derivatives.
Electricity Liquid MethaneBiomass Hydrogen OtherSolids
2015
Distributed Energy
600
500
400
300
200
100
0
2030 2040 2050
Global Ambition
2015 2030 2040 2050
TWh
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Own emissions
Decarbonisation levers identified relating to
own emissions.
Fluxys Belgium has set itself the target of reducing
overall greenhouse gas emissions from its own opera-
tional activities to become net zero by 2050. This target
includes Scope 1 and Scope 2 emissions, namely direct
emissions linked to our own emissions and indirect
emissions linked to the generation of the electricity
we consume.
Specific sub-targets have been defined, i.e. cut GHG
emissions by 67% at the end of 2030 and by 80% at the
end of 2035 (compared to 2017 levels, which serves as
the current benchmark year). These targets are compat-
ible with a sustainable economy limiting global warming
to 1.5 °C in line with the Paris Agreement and with the
goal of climate neutrality by 2050.
To cut our emissions, we have launched the Go4
Net
0
programme, which is a rolling programme identifying
additional measures required to achieve the target
(see 'How we're reducing our own climate impact',
p. 32). More information about the nature of the Scope 1
and 2 emissions is provided in the annex 'Methodology
for calculating greenhouse gas emissions', p. 121.
Acting and investing to reduce our emissions
(see ESRS E-3)
Scope 1
To define our Scope 1 reduction targets, we closely
monitored direct CO
2
and CH
4
emissions linked to our
activities and their possible evolution in the future.
Based on that analysis, we identified the actions
needed to reduce our greenhouse gas emissions,
evaluated the reduction potential of those actions and
devised a plan to align with the 1.5 °C scenario.
Initiatives launched in 2023 to cut our own
emissions
In 2023, the following initiatives intended to cut our own
emissions were rolled out:
• Three additional ORVs were built and put
into operation at Zeebrugge LNG Terminal.
Using the heat from seawater to regasify LNG
significantly reduces energy consumption
and hence CO
2
emissions at the facility.
• Initiative to replace gas engines with electrical
engines at the storage facility in Loenhout.
• Research into and follow-up on technology to further
reduce emissions currently considered as locked-in
(see ‘Locked-in emissions’ below, p. 76).
• As part of our Go4 Net0 programme, the
MethER project focuses specifically on mit-
igating measures to reduce methane emis-
sions linked to our own activities (see 'How
we're reducing our own climate impact’, p. 32).
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Investments to reduce our own emissions in
the investment plan 2024-2033
Type of investment to reduce
our own emissions
Amount in €m in indicative
investment plan 2024-2033
Time horizon
Additional ORVs and other opportunities to further reduce LNG
terminal CO
2
emissions
125.0 2024 - 2027
Replacement of gas engines with electrical compressors at
underground storage facility
50.1 2023 - 2026
Actions to reduce pneumatic emissions (MethER)
70.1 2018 - 2033
Recompression units at compressor stations 8.2 2021 - 2026
Interventions: mobile recompression and other equipment 8.4 2024 - 2025
Other actions to mitigate climate change
In addition to the above examples, other types of
measures are also taken during the operation of our
infrastructure in order to reduce the impact on our
environment:
• As such, we have concluded operational agree-
ments with neighbouring system operators
in order to coordinate our actions and aim for
the rational use of our networks (e.g. by start-
ing up as few compressors as possible).
• Furthermore, we are constantly seeking to achieve
maximum energy efficiency in our activities by
taking maximum advantage of the operational
flexibility of our pipelines and by optimally adjusting
the configurations in our pressure-reducing stations.
• In recent years, various installations at the LNG
terminal have been renovated and adapted to
boost the energy efficiency of the infrastructure.
The need to offset some of our carbon emissions has
yet to be assessed.
Type
Amount in €m in indicative
investment plan 2024-2033
Time horizon
Other solutions - improving energy efficiency 29.1 2022-2031
Scope 2
In 2023, Fluxys Belgium contracted green electricity
to cover the entirety of the electricity consumed by its
activities. These contracts allow us to limit our Scope
2 emissions.
Scope 3
The detailed assessment of Scope 3 emissions linked
to our activities is still underway.
Locked-in emissions
Our assessment identified the following locked-in
Scope 1 emissions:
• CO
2
emissions from heating systems
in our pressure-reducing stations
• CO
2
emissions from small devices
such as emergency generators
• Unavoidable methane emissions as residual
incompressible emissions during interventions
such as emergency interventions, and some
possible fugitive emissions identified during
Leak Detection and Repair (LDAR) campaigns.
Based on this assessment, the financial impact
of locked-in emissions is deemed to be below the mate-
riality thresholds.
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5. Quantification of material climate-related risks is required to address the material climate-related impacts, risks and opportunities. Since Fluxys Bel-
gium has not identified the energy consumption of its own activities or physical climate hazards as potentially having a material impact, quantification
is not required.
Policies and systems to manage risks and monitor material impacts of
climate change (ESRS E1-2/3)
Assessment of physical climate risks
Risks
Value chain Time horizon Analysis Measures
Physical climate risk - assets:
In a >4 °C scenario, severe and more
frequent hazards (storms, floods, rising
sea levels, wildfires) could damage
pipelines, installations and storage
facilities, impacting safety, availability
and costs.
Direct
operations -
downstream
Long term Low
5
• Processes and construction
standards
• HSE policy and periodic audits
• General emergency plan and
incident response
Policies and systems to monitor material
impacts of physical climate risks
(ESRS E1-3)
• Fluxys Belgium has continuous processes in place
and uses construction standards to mitigate climate-
related impacts on its assets.
• Our efforts to manage climate change risks stem
from the Health, Safety and Environment (HSE)
policy. The Environmental Management System
provides the framework for managing, monitoring
and improving measures. Internal and external audits
are also carried out periodically. Moreover, this
system includes environmental impact assessments
listing possible preventive and mitigating measures
to minimise impacts, a monitoring approach and a
complaints management structure.
• Fluxys Belgium's general emergency plan is also part
of the HSE policy and documents the overarching
methodology for responding to incidents on its
networks. Among other things, this plan also details
the crisis organisation, sets out the most likely
incident scenarios and provides guidance on the
steps to be taken in the event of an incident. The
members of the crisis team undergo specific training,
and emergency drills are also regularly organised in
order to ensure the team's responsiveness.
Description of the risk management
process used to assess physical climate
risks (ESRS E1-2)
Step 1: Identification
The exposure of our assets to physical climate risks is
assessed through an impact analysis for each hazard
identified.
Physical climate hazards were assessed to determine
the physical risk posed to the pipelines, above-ground
installations, the LNG terminal and other key activities
of Fluxys Belgium.
Step 2: Assessment
The hazard frequency change and vulnerability were
used to determine the impact score for each hazard
assessed. Mitigation measures help Fluxys reduce its
overall physical risks.
Step 3: Outcome of the risk assessment
According to Fluxys Belgium’s defined material-
ity threshold, none of the physical risks assessed
were classified as material in the short (one year),
medium (five years), long (ten years) or longer term
(to 2050). Fluxys Belgium has implemented relevant
mitigation actions that reduce the physical risk impact
scores to below the materiality threshold.
Quantification of material physical risks is required (in
terms of monetary value and as a percentage (%) of total
assets as at the reporting date) within three years of
reporting. Since Fluxys Belgium has not identified any
physical risks as material, quantification is not required.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
6. Shared Socioeconomic Pathway.
7. Sixth Assessment Report of the United Nations Intergovernmental Panel on Climate Change.
8. Representative Concentration Pathway.
Insight into the process used to identify
and assess physical climate-related risks
for Fluxys Belgium and its value chain
Scenarios and sources used for the physical
risk assessment
• The high emissions scenario used in this analysis
is the SSP5-8.5
6
from the IPCC AR6.
7
This scenario
is consistent with a future in which there have
been no policy changes to reduce emissions and
is characterised by increasing greenhouse gas
emissions that lead to extreme changes in global
weather patterns. Where information was unavaila-
ble, this scenario was used in conjunction with the
corresponding RCP 8.5
8
high emissions scenario.
• Physical climate risks were identified for the various
timeframes assessed using hazards, vulnerability
and expert insights as input for the climate-related
scenario analysis conducted for Fluxys Belgium.
Physical climate hazards assessed
• The hazards assessed are the most common cli-
mate hazards considered globally, namely:
– Floods
– Convective storms/tropical cyclones
– Wildfires
– Rising sea levels
– Heatwaves
– Drought
• Those hazards have been analysed in terms
of their impact on the safety of employees
and residents living in the vicinity of gas infra-
structure, on the availability of the infrastruc-
ture, and in terms of financial impact.
• This analysis was conducted for different types
of assets: (underground) pipelines, installations
(such as pressure-reducing stations or compres-
sor stations) and the LNG terminal in Zeebrugge.
Scenario timeframe considered
Varying scenario timeframes (2030, 2050 and 2100)
were used to assess the change in climate hazards in
the scenario analysis.
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9. Quantification of material climate-related risks is required to address the material climate-related impacts, risks and opportunities. Since Fluxys
Belgium has not identified the energy consumption of its own activities or physical climate hazards as potentially having a material impact, quantification
is not required.
Climate-related transition risks and opportunities
Risks
Value chain Time horizon Analysis Measures
Transition – market
the role of natural gas in the future
energy mix - drop in demand for
natural gas could lead to some Fluxys
infrastructure no longer being used,
loss of revenues
Downstream Long term High
• Development of new activities to
accelerate the energy transition
(see also the ten-year transition and
investment plan)
Transition – Technology
difference in timing between capital
investments needed in new molecules
vs a market that is not yet generating
revenues
Direct
operations
Downstream
Long term Medium
high
• Investment plan for the development
of a hydrogen network and a CO
2
network
Transition – GHG emissions
Non-respect des objectifs en matière
d'émissions
Direct
operations
Long term Medium
high
• Go4Net0 programme to achieve the
reduction targets
Climate change – Energy consumption
Les activités de Fluxys pourraient
nécessiter une plus grande
consommation d'énergie
Direct
operations
Medium
term
Low
9
• Use of technology to boost energy
efficiency
Opportunities
Value chain Time horizon Analysis Measures
Transition – H
2
market
Revenues from transmission,
terminalling and storage of hydrogen
Downstream Long terme High
• Objectives and commitment
regarding the transport of new
molecules
• Investment plan
Transition – Carbon market
Revenues from transmission and
terminalling of CO
2
Downstream Long terme Medium
high
• Objectives and commitment
regarding the transport of new
molecules
• Investment plan
Transition – Biomethane market
Revenues from biomethane
transmission
Downstream Medium
term
Medium
low
• Objectives and commitment
regarding the transport of new
molecules
• Investment plan
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10. International Energy Agency.
11. European Network of Transmission System Operators for Gas.
12. Task Force on Climate-related Financial Disclosures.
Policies and systems to monitor material
impacts of physical climate risks (ESRS E1-3)
• Actions relating to the development
of H
2
/CO
2
transport, see p. 74.
• Actions relating to the reduction
of our emissions, see p. 75.
Description of the risk management
process used to assess transition risks and
opportunities (ESRS E1-2)
Step 1: Identification
Fluxys Belgium identified key climate transition risks
and opportunities by looking at:
• key changes to the gas transport sector (e.g. tech-
nological changes or upcoming regulations, the
region (Belgium), society's energy consumption and
demand, and the impact of geopolitical events);
• the key mechanisms and driving forces taken
into consideration (e.g. goal of carbon neu-
trality by 2050, policies (e.g. EU Emissions
Trading System (ETS)), and market interests,
e.g. growth of the H
2
and CO
2
market);
• Fluxys Belgium's existing strategy;
• Fluxys Belgium's entire value chain (supply
chain, own activities and downstream market).
Step 2: Assessment
With the aid of internal experts, the various transition
risks and opportunities have been analysed to deter-
mine their financial impact on Fluxys. Mitigation meas-
ures help Fluxys reduce these risks.
Step 3: Outcome of the risk and opportunities
assessment
Of the key transition risks and opportunities impacting
Fluxys Belgium identified through the scenario analy-
sis, three out of four risks are considered material in
the long and longer term. All risks and opportunities
identified were also analysed and quantified, taking
into account existing and planned mitigation measures.
Insight into the process used to identify
and assess physical climate transition risks
and opportunities
Scenarios and sources used for the
assessment
• The climate scenario in line with limiting
global warming to 1.5 °C is the Net Zero Emis-
sions (NZE) by 2050 scenario.
• For the purposes of Fluxys Belgium's assessment of
transition risks and opportunities, three key informa-
tion sources were used, namely the IEA,
10
ENT-
SOG's
11
TYNDP 2022 and Fluxys' Energy Outlook
2030 and 2050. These sources were supplemented
by additional research documents when required
(e.g. latest IPCC study, published in April 2022).
• The climate-related scenario analysis, alongside
expert insight, aided the assessment of the risks
and opportunities identified for Fluxys Belgium.
Transition events analysed
The transition risks and opportunities were analysed
throughout the value chain using the transition risk
categories from the TCFD,
12
namely:
• Regulation
• Market
• Technology
Scenario timeframe considered
• Varying timeframes (2030, 2050 and 2100)
were used to assess the change in transi-
tion events in the scenario analysis.
• Extrapolation was used to analyse the
impact in the short (one year) and long term
(ten years) for integration into Fluxys Bel-
gium’s ERM matrix and processes.
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13. The undertaking may omit the information prescribed by ESRS E1-9 for the first year in which it prepares its sustainability statement.
Targets
13
related to climate change mitigation and adaptation (ESRS E1-4)
Commitments Objectives
Reduce our greenhouse gas emissions to bring us into line
with the scenario compatible with limiting global warming
to1.5 °C
Cut our Scope 1 and 2 emissions (compared to 2017 levels):
• By 50% at the end of 2025
• By 67% at the end of 2030
• By 80% at the end of 2035
• Net zero in 2050
The targets are based on the use profile of Zeebrugge
LNG Terminal in 2022 and the theoretical reduction in CO
2
emissions at the facility through the use of ORVs using heat
from seawater.
Fluxys has no EU ETS objective.
Scope 3: The Science Based Targets initiative (SBTi) sector-
guidance standard for the oil and gas sector is currently
under development. Fluxys Belgium is waiting for the
publication of the standard to align its Scope 3 targets with
sector trends.
Be the essential infrastructure partner to accelerate the
energy transition
From 2024 onwards, in addition to our specific H
2
and CO
2
projects, 90% of the total length of our major new CH
4
pipeline projects will be designed and built to transport
low-carbon gas and CO
2
.
Commitment 1: Reduce our greenhouse
gas emissions to bring us into line with
the scenario compatible with limiting
global warming to 1.5 °C
The target and decarbonisation levers are explained in
'Transition plan (E1-1)', p. 75.
Commitment 2: Be the essential
infrastructure partner to accelerate
theenergy transition
Gas transmission is one of Fluxys Belgium's key activi-
ties. While Fluxys currently transports natural gas (mainly
methane), we are preparing to transport molecules that
support a carbon-neutral future, such as hydrogen and
CO
2
in gaseous form.
Our network must be ready to transport these low-car-
bon molecules as well as CO
2
. As such, we have set
ourselves the target that, from 2024 onwards, 90%
of the total length of our major new CH
4
pipeline con-
struction projects (i.e. projects spanning at least 5 km
in total) will be designed and built to transport not only
natural gas but also low-carbon gases, such as hydro-
gen, or CO
2
.
Pipelines capable of accommodating different molecules
not only mitigate the future risk of unused pipelines but
also support the decarbonisation of the world around us.
Such pipelines are designed based on appropriate
specifications (e.g. steel of a certain quality, specific
pipe thicknesses) and are built using suitable methods
(e.g. specific welding processes).
Alongside new infrastructure, existing infrastructure will
also be used to transport these new molecules in the
future, with some modifications made where necessary.
In 2023, work began on the 44-km-long link between
Desteldonk and Opwijk, with this pipeline having a diam-
eter of 1,000 mm. The section linking Desteldonk to
Zele has already been commissioned, while commis-
sioning of the remaining section linking Zele and Opwijk
is scheduled for mid-2024. This is the first pipeline laid
by Fluxys that has been designed to transport hydrogen.
The second project rolled out in 2023 links Fexhe to
Les Awirs, spanning a distance of 10 km. This is intended
to connect Les Awirs power station. The procedures
followed during the construction of this pipeline will ulti-
mately make it possible to supply the power plant with
hydrogen. The project began in August 2023, with a
view to connecting Les Awirs power station during 2024.
14. The detailed analysis of scope 3 emissions related to our operations is ongoing.
15. Fluxys Belgium uses a 'shadow' internal carbon price, which is determined based on the allowance prices under the Emissions Trading System (ETS).
The main aims of introducing an internal carbon price are (1) drive low-carbon investments and (2) identify and seize low-carbon opportunities. The
internal carbon price is reviewed on a quarterly basis.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
More broadly and beyond investments made in new
pipelines, the taxonomy indicators provide an overview of
investments, operational expenses and green revenues:
KPIs Unit 2023
ESRS indicators
Energy consumption mix (DR E1-5)
Total energy consumption linked to our own activities MWh
1,416,017.47
Total energy consumption from fossil fuels MWh
1,193,235.25
Total energy consumption from nuclear power MWh
0
Percentage of nuclear energy consumption in total energy
consumption
%
0
Total energy consumption from renewable sources MWh
222,782.22
Consumption of renewable fuels MWh
0
Consumption of electricity, heat, steam and cooling purchased
or acquired (renewable sources)
MWh
222.767,00
Consumption of self-generated renewable energy without fuel MWh
15.22
Percentage of renewable sources in total energy consumption %
16
Consumption of fuel from coal and coal products MWh
0
Consumption of fuel from crude oil and petroleum products MWh
10,132.01
Consumption of fuel from natural gas MWh
1,182,975.13
Consumption of fuel from other fossil fuel sources MWh
0
Consumption of electricity, heat, steam or cooling purchased or
acquired (fossil sources)
MWh
128.11
Percentage of fossil sources in total energy consumption %
84
Non-renewable energy generation MWh
37.19
Renewable energy generation MWh
15,22
Gross scope 1, 2, 3 emissions and total greenhouse gas emissions (DR E1-6) 2023 2017
Total GHG emissions (market based) tCO
2
e
502,592.71 250,414
Gross GHG emissions - Scope 1 tCO
2
e
286,911.77 234,259
% of Scope 1 emissions from regulated ETSs %
68 20
Gross GHG emissions - Scope 2 (location based) tCO
2
e
28,954.08 16,155
Gross GHG emissions - Scope 2 (market based) tCO
2
e
16.52 16,155
Gross GHG emissions - Scope 3
14
tCO
2
e
215,664.30 N/A
Intensity of GHG emissions based on net revenue tCO
2
e/M€
608.6 N/A
Internal carbon pricing (ESRS E1-8)
15
2023
Internal carbon pricing: carbon price per tonne of CO
2
emissions € 116.37
Accelerate the energy transition with multi-molecule infrastructure, today and tomorrow
% of the total length of our major new CH
4
pipeline projects
designed and built to transport low-carbon gas or CO
2
%
100
EU taxonomy (DR E1-3): 2023 2022
Sustainable OPEX (aligned with the taxonomy) % 16.26 5.91
Sustainable CAPEX (aligned with the taxonomy) % 31.01 15.05
Sustainable turnover (aligned with the taxonomy) % 0 0
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EU taxonomy for sustainable economic activities
Over 80% of the investment plan
focused on sustainable economic
activities
In 2023, Fluxys Belgium approved its indicative invest-
ment plan for the period 2024-2033. In total, the pro-
gramme represents investments worth €5.9 billion.
Estimated investments in the development of hydrogen
and CO
2
infrastructure, the reduction of our own green-
house gas emissions and other investments in sustain-
able economic activities account for over 80% of this
amount.
Context of the EU taxonomy for
sustainable economic activities
The European Commission has rolled out a sustaina-
ble finance action plan. According to this regulation or
'taxonomy', companies like Fluxys Belgium must specify
which of their activities are environmentally sustainable.
From 2023 onwards, companies must indicate what
proportion of their activities contribute to the Commis-
sion's six environmental objectives, namely:
• climate change mitigation;
• climate change adaptation;
• sustainable use and protection of
water and marine resources;
• pollution prevention and control;
• protection and restoration of bio-
diversity and ecosystems;
• transition to a circular economy.
Only economic activities related to the climate change
mitigation objective are relevant for Fluxys Belgium.
The economic activities selected in this way must not
significantly harm (DNSH) the other objectives men-
tioned above, i.e. climate change adaptation, protection
of water resources, prevention of pollution, protection
of biodiversity and ecosystems. The circular economy
criteria do not apply to our activities.
Economic activities making a signif-
icant contribution to climate change
mitigation
For the 2023 financial year, Fluxys Belgium examined
its economic activities and assessed whether they
could be eligible under the EU taxonomy and also sus-
tainable (aligned), in accordance with Annexes I and II
of the Delegated Regulation on Climate.
As such, Fluxys Belgium has identified the following
economic activities as being eli gible activities:
• 4.14) Transmission and distribution systems
for renewable and low-carbon gases
This category of eligible economic activity includes the
following Fluxys activities:
• The construction and operation of facili-
ties able to transport hydrogen and other
renewable and low-carbon gases
• The modification of the transmission sys-
tem to allow the transport of hydrogen and
other renewable and low-carbon gases
• Research, development and innovation
activities relating to the construction and
operation of pipelines used to transport
renewable and low-carbon gases
• Environmentally sustainable activities (aligned):
Environmentally sustainable activities (aligned):
• Technical screening criteria – The economic activ-
ity complies with the technical screening criteria
because, in connection with these activities, we
take the necessary measures to transform the exist-
ing network, turn it into a network able to transport
renewable and low-carbon gases, as well as detect
and repair methane leaks and cut greenhouse
gas emissions. We consider the activities related
to the greening of our current operations to be an
essential part of the economic activity in question.
Facilitating green gas in the
natural gas network
Hydrogen infrastructure
Other investments
CO
2
-infrastructure
Reducing our own
greenhouse gas emissions
• Do no significant harm (DNSH) – The economic
activity was also assessed to ensure that it does
not significantly harm the following four objec-
tives: climate change adaptation, sustainable
use of water, pollution prevention, and protec-
tion of biodiversity. The circular economy criteria
do not apply to our activities. To this end, we
drew on the various environmental risk assess-
ments that already exist within the company.
• Minimum guarantees – With a series of compa-
ny-internal control mechanisms, Fluxys Belgium
ensures that appropriate limitations are placed
on risks related to corruption, non-respect
for human rights, unfair competition and tax
fraud. In 2023, Fluxys Belgium was not prose-
cuted or convicted for any of these offences.
• From the above, it can be concluded that
the activities mentioned above can be
regarded as environmentally sustainable.
Turnover
In 2023, no revenue was generated from the sale of
transmission capacity for renewable or low-carbon
gases.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Substantial contribution
criteria
DNSH criteria ('Does not significantly harm')
Economic Activities Code(s) Absolute
Turnover
Proportion
of Turnover
Climate
change
mitigation
Climate
change
adaptation
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution Biodiversity
and ecosys-
tems
Minimum
safeguards
Taxono-
my-aligned
proportion of
Turnover,
year N
Taxono-
my-aligned
proportion of
Turnover,
year N-1
Category
(enabling
activity or)
Category
(transitional
activity)
m€ % % % Y/N
Y/N
Y/N Y/N Y/N Y/N
Y/N
% %
F T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transmission and distribution
networks for renewable and
low-carbon gases
4.14 0 m€ 0% 0% Y/N Y/N
Y
Y N/A Y Y
Y
0% N/A N/A N/A
Turnover of environmentally
sustainable activities (A.1)
0 m€ 0% 0% Y/N Y/N 0% N/A N/A N/A
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Turnover of taxonomy-eligible but not
environmentally sustainable activities
(A.2)
0 m€ 0%
Total (A.1 + A.2) 0 m€ 0%
0%
B. Taxonomy non-eligible activities
Turnover of Taxonomy-non-eligible
activities (B)
593 m€ 100%
TOTAL (A + B) 593 m€ 100%
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Substantial contribution
criteria
DNSH criteria ('Does not significantly harm')
Economic Activities Code(s) Absolute
Turnover
Proportion
of Turnover
Climate
change
mitigation
Climate
change
adaptation
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution Biodiversity
and ecosys-
tems
Minimum
safeguards
Taxono-
my-aligned
proportion of
Turnover,
year N
Taxono-
my-aligned
proportion of
Turnover,
year N-1
Category
(enabling
activity or)
Category
(transitional
activity)
m€ % % % Y/N
Y/N
Y/N Y/N Y/N Y/N
Y/N
% %
F T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transmission and distribution
networks for renewable and
low-carbon gases
4.14 0 m€ 0% 0% Y/N Y/N
Y
Y N/A Y Y
Y
0% N/A N/A N/A
Turnover of environmentally
sustainable activities (A.1)
0 m€ 0% 0% Y/N Y/N 0% N/A N/A N/A
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Turnover of taxonomy-eligible but not
environmentally sustainable activities
(A.2)
0 m€ 0%
Total (A.1 + A.2) 0 m€ 0%
0%
B. Taxonomy non-eligible activities
Turnover of Taxonomy-non-eligible
activities (B)
593 m€ 100%
TOTAL (A + B) 593 m€ 100%
Capital expenditure
Capital expenditure covers investments, mainly in con-
nection with the Go4
Net
0 project to reduce our compa-
ny's climate impact.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Substantial contribution
criteria
DNSH criteria ('Does not significantly harm')
Economic Activities Code(s) Absolute
CapEx
Proportion
of CapEx
Climate
change
mitigation
Climate
change
adaptation
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution Biodiversity
and ecosys-
tems
Minimum
safeguards
Taxono-
my-aligned
proportion of
CapEx,
year N
Taxono-
my-aligned
proportion of
CapEx,
year N-1
Category
(enabling
activity or)
Category
(transitional
activity)
m€ % % % Y/N
Y/N
Y/N Y/N Y/N Y/N
Y/N
% %
F T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transmission and distribution
networks for renewable and
low-carbon gases
4.14 58,1 m€ 31,01% 100% N/A N/A
Y
Y N/A Y Y
Y
31,01% 5,91% N/A N/A
CapEx of environmentally sustainable
activities (A.1)
58,1 m€ 31,01% 100% N/A N/A 31,01% 5,91% N/A N/A
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
CapEx of taxonomy-eligible but not
environmentally sustainable activities
(A.2)
0 m€ 0%
Total (A.1 + A.2) 58,1 m€ 31,01%
31,01% 5,91%
B. Taxonomy non-eligible activities
CapEx of Taxonomy-non-eligible
activities (B)
129,37 m€ 68,99%
TOTAL (A + B) 187,47 m€ 100%
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Substantial contribution
criteria
DNSH criteria ('Does not significantly harm')
Economic Activities Code(s) Absolute
CapEx
Proportion
of CapEx
Climate
change
mitigation
Climate
change
adaptation
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution Biodiversity
and ecosys-
tems
Minimum
safeguards
Taxono-
my-aligned
proportion of
CapEx,
year N
Taxono-
my-aligned
proportion of
CapEx,
year N-1
Category
(enabling
activity or)
Category
(transitional
activity)
m€ % % % Y/N
Y/N
Y/N Y/N Y/N Y/N
Y/N
% %
F T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transmission and distribution
networks for renewable and
low-carbon gases
4.14 58,1 m€ 31,01% 100% N/A N/A
Y
Y N/A Y Y
Y
31,01% 5,91% N/A N/A
CapEx of environmentally sustainable
activities (A.1)
58,1 m€ 31,01% 100% N/A N/A 31,01% 5,91% N/A N/A
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
CapEx of taxonomy-eligible but not
environmentally sustainable activities
(A.2)
0 m€ 0%
Total (A.1 + A.2) 58,1 m€ 31,01%
31,01% 5,91%
B. Taxonomy non-eligible activities
CapEx of Taxonomy-non-eligible
activities (B)
129,37 m€ 68,99%
TOTAL (A + B) 187,47 m€ 100%
Operating expenses
• We work with industrial partners, academic insti-
tutions and public authorities on projects linked
to the transport of renewable or low-carbon
molecules, as well as on the Go4 Net0 project to
reduce our company's impact on the climate.
• As such, our operating expenses include staff
costs relating to the performance of mainte-
nance and leak detection and repairs, includ-
ing pipeline pigging, special helicopter flights,
and the costs of specific studies into the trans-
port of renewable or low-carbon molecules.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Substantial contribution
criteria
DNSH criteria ('Does not significantly harm')
Economic Activities Code(s) Absolute
OpEx
Proportion
of OpEx
Climate
change
mitigation
Climate
change
adaptation
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution Biodiversity
and ecosys-
tems
Minimum
safeguards
Taxono-
my-aligned pro-
portion of OpEx,
year N
Taxono-
my-aligned
proportion of
OpEx,
year N-1
Category
(enabling
activity or)
Category
(transitional
activity)
m€ % % % Y/N
Y/N
Y/N Y/N Y/N Y/N
Y/N
% %
F T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transmission and distribution
networks for renewable and
low-carbon gases
4.14 8,8 m€ 16,26% 100% N/A N/A Y
Y N/A Y Y Y 16,26% 15,05% N/A N/A
OpEx of environmentally sustainable
activities (A.1)
8,8 m€ 16,26% 100% N/A N/A 16,26% 15,05% N/A N/A
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
OpEx of taxonomy-eligible but not
environmentally sustainable activities
(A.2)
0 m€ 0%
Total (A.1 + A.2) 8,8 m€ 16,26%
16,26% 15,05%
B. Taxonomy non-eligible activities
OpEx of Taxonomy-non-eligible
activities (B)
45,6 m€ 83,74%
TOTAL (A + B) 54,4 m€ 100%
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Substantial contribution
criteria
DNSH criteria ('Does not significantly harm')
Economic Activities Code(s) Absolute
OpEx
Proportion
of OpEx
Climate
change
mitigation
Climate
change
adaptation
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy
Pollution Biodiversity
and ecosys-
tems
Minimum
safeguards
Taxono-
my-aligned pro-
portion of OpEx,
year N
Taxono-
my-aligned
proportion of
OpEx,
year N-1
Category
(enabling
activity or)
Category
(transitional
activity)
m€ % % % Y/N
Y/N
Y/N Y/N Y/N Y/N
Y/N
% %
F T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transmission and distribution
networks for renewable and
low-carbon gases
4.14 8,8 m€ 16,26% 100% N/A N/A Y
Y N/A Y Y Y 16,26% 15,05% N/A N/A
OpEx of environmentally sustainable
activities (A.1)
8,8 m€ 16,26% 100% N/A N/A 16,26% 15,05% N/A N/A
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
OpEx of taxonomy-eligible but not
environmentally sustainable activities
(A.2)
0 m€ 0%
Total (A.1 + A.2) 8,8 m€ 16,26%
16,26% 15,05%
B. Taxonomy non-eligible activities
OpEx of Taxonomy-non-eligible
activities (B)
45,6 m€ 83,74%
TOTAL (A + B) 54,4 m€ 100%
Biodiversity
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Negative Actual
Become a net-zero
company that preserves
natural capital (E)
Biodiversity Our activities have a direct
impact on local ecosystems,
which can affect biodiversity (e.g.
through temporary disruptions
during works or during operation
through noise pollution, NOx
emissions). The sector in which
Fluxys operates also runs the
risk of impacting biodiversity
throughout our value chain (e.g.
in the production of steel for our
pipelines).
Some of Fluxys Belgium's
activities may harm ecosystems
and biodiversity. This could lead
to financial risks (i.e. fines) and
reputational risks.
Measures
Policies
• Fluxys' Health, Safety and Environment Policy
Actions
• Environmental management system
• Environmental studies and monitoring
• Internal and external audits
• Measures to prevent and mitigate negative impacts
• Reducing noise pollution
• Handling environmental complaints
Policies (ESRS E4-2)
Fluxys' Health, Safety and Environment
Policy
By biodiversity, we mean respect for the local ecosys-
tems on which we have an impact.
Health, safety and the environment (HSE) is a respon-
sibility and commitment for both Fluxys and its
employees. Fluxys is committed to the environment by
responding to the need for infrastructure to transport
the energy of the future, investing in cutting our green-
house gas emissions and improving our ecological
footprint.
Actions (ESRS E4-3)
Environmental management system
Fluxys Belgium's Environmental Management System
provides the framework for management, monitoring
and improvement measures for environmental coor-
dinators. Environmental coordinators advise on and
recommend ways to minimise the impact of Fluxys'
activities on ecosystems and on the environment in
general.
Environmental studies and monitoring
During the design phase, Fluxys Belgium takes care
to limit the impact on the environment and neighbouring
area during the construction and operation of new facili-
ties, in particular with the help of environmental studies.
The impact on the environment and local ecosystems
is assessed each time an application is submitted for
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
a permit to build or operate a new facility, or when an
environmental permit is renewed. These environmental
studies gauge a project's potential impact in various
areas, including air, water and soil pollution, ambient
noise, the production of waste, spatial integration, mobil-
ity, and the impact on biodiversity.
Alongside these studies, we continuously monitor green-
house gases and atmospheric emissions (see 'Climate
change: our own emissions', p. 81). Noise levels as well
as any air, soil and wastewater pollution are also moni-
tored through a range of measurements and analyses.
Internal and external audits
Internal audits of the application of the HSE policy are
carried out periodically by the Internal Audit team and
the Technical Compliance Department.
The two Seveso facilities (the Loenhout gas storage
facility and Zeebrugge LNG Terminal) are required
by law to undergo an environmental audit every three
years. The environmental audit is externally validated
and submitted to the competent authorities. The most
recent audit was conducted in December 2022.
Measures to prevent and mitigate
negative impacts
Fluxys Belgium takes great care to ensure the conser-
vation of ecosystems in those areas where its infra-
structure is built and/or operated. Environmental impact
assessments gauge our infrastructure's impact on eco-
systems (see above, p. 77). Preventive or mitigating
measures are taken where possible.
When laying new pipelines, Fluxys Belgium always
takes care to ensure that work causes as little disrup-
tion to the environment as possible, for instance:
• In certain circumstances, the routes of new
pipelines are revised to minimise disruption to
certain ecosystems and protected areas.
• In certain situations, directional drill-
ing is used to cross nature reserves
in order to protect these areas.
• The topsoil excavated during construction can
be sown to preserve it. In some cases, the top-
soil is enriched with organic fertilisers to main-
tain its fertility once it has been restored.
• Preventive measures can be taken to avoid
the spread of undesirable species on site.
• Work sites are sized and planned according to
the natural resources to be preserved (e.g. spe-
cific standalone trees, specific nesting period).
We also ensure that nature is allowed to recover after
construction. We invest in nature compensation meas-
ures involving local species. In some cases, we go fur-
ther than the legal requirements in force in Belgium's
various regions.
When it comes to compensation for deforestation carried
out in connection with the construction of new pipelines,
we naturally comply with the legal requirements and we
go beyond these requirements in the case of backbones
(main pipelines). In 2023, for example, as part of the
Zeebrugge-Opwijk construction project (a multi-pur-
pose backbone spanning almost 100 km), afforestation
initiatives were implemented, going beyond that legally
required, over a total area of 6.5 ha.
Fluxys does not use offsetting as a means of compensat-
ing for the negative impact of its activities on biodiversity.
Reducing noise pollution
Fluxys Belgium uses a range of techniques to limit the
noise generated by its pressure-reducing stations, com-
pressor stations and other facilities. When building new
infrastructure, a lot of attention is paid to potential noise
pollution from the design phase onwards.
Handling environmental complaints
Environmental complaints from external parties are
monitored and result in improvement measures. In
2023, local residents submitted eight environmental
complaints to Fluxys directly. Complainants predom-
inantly contacted us to express dissatisfaction about
noise. All the complaints have been resolved.
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Commitments and objectives (ESRS E4-4)
Commitments Objectives
At Fluxys, we preserve natural capital. Implementation of an action plan to preserve and
foster biodiversity
• By 2026, for every kilometre of backbone laid,
Fluxys Belgium will plant 500 m² of vegetation
in addition to the legal compensation provided
for in cases of deforestation and felling.
• By 2028, Fluxys will implement an action plan to
foster biodiversity at a number of these sites.
Fluxys has two main areas of activity: building infra-
structure such as pipelines and operating our Fluxys
sites. Our biodiversity objectives are in line with these
two activities::
1. The construction of pipelines temporarily
impacts biodiversity, more specifically owing to
the deforestation and felling carried out in the
construction zones. We are legally required to
introduce mechanisms to compensate for this
deforestation. Fluxys has set itself the target
of going beyond these legal requirements by
ensuring, by 2026, the planting of an additional
500 m² of vegetation per kilometre of
pipeline built in connection with our backbone
strategy. To support us in this endeavour,
we are partnering with experts in the field.
2. Our second objective is to roll out an action
plan to foster biodiversity at some of our
sites. To this end, we will be conducting a
biodiversity audit of some of our sites, to
be conducted by an external ecological
expert, and taking appropriate steps based
on this expert's recommendations. Pending
this audit, the first actions have been
identified and will be implemented within
this framework: converting certain areas of
our compressor and storage stations into
flower fields (one field of flowers per year) and
pruning hedges outside the nesting period
from 2024 onwards according to current
contracts with our suppliers. Some flower
fields have already been sown and are being
maintained at the Weelde and Winksele sites.
An in-depth biodiversity assessment on and around the
above-ground facilities at the Loenhout gas storage
site was carried out in 2022. Taking this as a basis,
initiatives will be launched to foster biodiversity in the
vicinity of these facilities, such as modifying the pools
for amphibians and placing nest boxes in the bushes
around the station.
Performance indicators (ESRS E4-5, E4-6)
KPI Unit 2023 2022
# m² of 'voluntarily' planted vegetation linked to the number of
kilometres of backbone built
#m² 30.000 New
# m² of area compensated for in kind owing to deforestation related
to the number of kilometres of backbone built
#m² 8.540 New
# of compressor stations where certain areas have been converted
into fields of flowers
# 1 New
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Social
Performance indicators regarding ............. p.95
the company's own workforce
Material topics linked to social factors
Build and operate safe and ................................................ p.96
reliable infrastructure
Employee safety ................................................................... p.101
Diversity and inclusion ...................................................... p.104
Employee engagement .................................................... p.106
Learning and talent development .................................. p.111
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Performance indicators regarding the company's own
workforce (ESRS S1-6, S1-9, S1-16, ESRS 2 DR GOV-1)
KPIs Unité 2023 2022
ESRS indicators:
Total number of employees # 942 909
Total number of men 780 756
Total number of women 162 153
Permanent employees # 926 894
Permanent employees: men # 775 New
Permanent employees: women # 151 New
Temporary employees # 16 15
Temporary employees: men # 5 New
Temporary employees: women # 11 New
Total number of employees who left the company during
the reporting period
# 60 62
Number of executive employees # 4 New
Number of non-executive employees # 12 New
Members of the Board of Directors: men # 13 New
Members of the Board of Directors: women # 8 New
Gender diversity ratio on the Board of Directors % 38 New
The figures are based on the active workforce of Fluxys
Belgium and Fluxys LNG. Non-active employees,
such as those absent due to long-term illness, are not
included in the figures. Unless otherwise indicated, the
figures refer to the number of people and not to FTEs.
Furthermore, the figures represent the situation as at
31 December 2023.
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Safe and reliable infrastructure (entity specific)
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Positive Actual
Accelerate the
energy transition with
infrastructure able
to transport various
molecules, both now
and in the future
Build safe and
reliable infra-
structure
Fluxys provides its customers
with safe and reliable access to
molecules via our infrastructure
in order to ensure the security of
the energy supply to distribution
systems, industrial customers and
power stations.
Industrial incidents and certain
cyber incidents can damage
Fluxys Belgium's infrastructure,
endanger people's safety, cause
unavailability impacting service
continuity, and result in financial
loss.
Measures
Policies
• HSE policy
• Procedure for communicating with local residents and neighbouring
companies
Actions
• Preventive measures in the design, construction, operation and
end-of-life of infrastructure
• Audited Safety Management System
• Thorough maintenance and inspection
• Emergency plan and procedure
• Health and safety training
• Cyber security and ICT systems
• Actions to ensure good neighbourly relations
Policies (DR S1-1)
HSE policy
The Health, Safety and Environment (HSE) policy focuses
on the safety of employees, residents and anyone else
in the vicinity of our infrastructure. We pledge to our
stakeholders that we will act in a safe, reliable and sus
-
tainable manner.
Fluxys invests in numerous measures, procedures and
actions to prevent incidents and accidents. Our contrac-
tors are also bound by this policy and must live up to our
commitment to making safety our top priority.
We adopt active risk management through an audited
Safety Management System (SMS).
All incidents or near-incidents are investigated thor-
oughly and action is taken immediately to prevent such
incidents from recurring.
Procedure for communicating with local
residents and neighbouring companies
Fluxys has an information and awareness-raising policy
aimed at organising communication from Fluxys to local
residents about Fluxys infrastructure and infrastructure
projects and to a wide range of target groups about
the obligation to report third-party works near Fluxys
infrastructure (see 'Actions to ensure good neighbourly
relations, p. 98).
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Actions (ESRS S1-4)
Preventive measures in the design,
construction, operation and end-of-life
of infrastructure
Preventive measures such as risk assessments and
monitoring of standards are incorporated from the
design phase onwards.
Fluxys uses only qualified and certified contractors in its
construction projects. Moreover, the company's entities
involved in construction projects are Safety, Health and
Environment Checklist for Contractors (SCC) certified.
Prior to commissioning, a series of tests is carried out
under the supervision of an approved inspection body.
The condition of the pipes is then checked regularly as
part of an inspection programme. The pipelines are also
fitted with coatings and a cathodic protection system
to prevent corrosion.
Any infrastructure that will no longer have a transmis-
sion function in the future is safely taken out of service.
Audited Safety Management System
Fluxys has a planned, structural approach to safety, the
environment and prevention, using a Safety Manage-
ment System to ensure the longevity and reliability of
its infrastructure, including a Pipeline Integrity Manage-
ment System (PIMS).
The Safety Management System is continuously
updated to take account of the latest developments and
is also subject to periodic internal and external audits.
The Safety Management System for storage and LNG
terminalling activities is covered by the Seveso legis-
lation. The Federal Public Service Employment, Labour
and Social Dialogue conducts specific inspections at
both Seveso sites in conjunction with the Flemish gov-
ernment's Environment Department.
Within the Safety Management System, risk assess-
ments are the instrument used to identify and assess
the safety aspects pertaining to the integrity of the
infrastructure and to define the safety-critical controls.
The Safety Management System also integrates
in-house training aspects relating to maintenance,
prevention of damage and work by third parties and
the raising of awareness among stakeholders such as
municipalities, the fire brigade, landowners, architects,
contractors and excavator operators.
Thorough maintenance and inspection
Patrols (by car, helicopter or on foot) follow the route of
the pipelines to detect any anomalies. During our patrols,
we also make sure that there are no unreported works
near our pipelines in Belgium. With regard to reported
works, the patrols ensure that the planned safety instruc-
tions are being followed.
In order to detect such works preventively, our main pipe-
lines are equipped with an acoustic detection system.
Maintenance programmes specific to each type of facil-
ity ensure that infrastructure remains safe and reliable
throughout its life cycle. All maintenance activities are
carried out by competent internal or external staff. Where
possible, pipelines are periodically inspected internally.
Emergency plans and procedures
With a view to limiting the impact of incidents, Fluxys has
a crisis team and emergency plans and procedures for
both its operational and ICT activities. Central Dispatch
-
ing also plays a coordinating role should an incident be
reported.
Emergency numbers are available 24 hours a day for
reporting incidents involving, or in the vicinity of, our
natural gas transmission infrastructure.
Fluxys' general emergency plan documents the overall
methodology for responding to incidents. In addition,
there are specific emergency plans that define the crisis
response for different sites and operating risks.
In the event of an incident, all contacts with internal and
external stakeholders are fully documented and, for each
stakeholder group, are assigned to specific roles within
the crisis organisation.
The emergency plan is part of Fluxys' Safety Manage
-
ment System (SMS). The members of this crisis team
undergo specific training. We also organise regular emer
-
gency drills to ensure that our organisation is responsive.
Health and safety training
Training for excavator operators
Specific training courses have been developed for all
excavator operators to make them aware of the pre-
ventive measures to be adopted when working near
our facilities.
Employee training courses
Training and awareness-raising campaigns are also
organised for employees with a view to preventing
incidents (see 'Employee safety', p. 101).
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Cyber security and ICT systems
The availability of ICT systems and industrial control
systems is vital to the safe and reliable operation of
our infrastructure. These systems can malfunction for
various reasons. With this in mind, Fluxys implements
technical and organisational measures to ensure the
availability of its IT systems.
Cyber security programme
Fluxys uses an Information Security Management Sys-
tem (ISMS) to take care of structured cyber-security
management.
The functioning and maturity of the management aspects
of the ISMS are scrutinised at least annually by Internal
Audit, using external specialists to this end. In addition,
each year we carry out various vulnerability scans of
internal systems and the external perimeter. For attack
and penetration testing, we call on the services of exter
-
nal ethical hackers.
NIS certification
In 2023, Fluxys obtained ISO 27001 certification to
comply with the Network and Information Systems
(NIS) legislation. This certification confirms our unwa-
vering commitment to securing our data, embodying
a promise of trust and excellence in information risk
management.
Back-up facilities
For several systems such as those used to manage natu-
ral gas flows on the network, back-up facilities are in place
and can be activated as soon as a malfunction occurs,
thus ensuring continued operation. These contingencies
are periodically tested by means of disaster recovery
plan drills.
Cyber threats
Our ICT approach also pays special attention to
ever-growing cyber threats (attacks, malware, phish-
ing, etc.). The ICT teams take technical measures to act
as a barrier against the wide variety of cyber risks. In
this context, they call on the external expertise of, for
instance, the Centre for Cyber Security Belgium and
software suppliers to identify and close new loopholes
in the cyber net.
Operational monitoring and continuity
Operational monitoring and detection of data leaks
or attacks are performed by, among others, security
information and event management (SIEM) and end-
point detection and response (EDR) solutions, which are
monitored 24/7 by a security operations centre (SOC).
If something does go wrong, our ICT approach focuses
on ensuring continuity of service. This is done using
scenarios that are practised regularly by the ICT teams.
Training and awareness raising
Fluxys also focuses on training and awareness rais-
ing. In 2023, we carried out several phishing exercises
(including phishing via text). We also organised training
courses on cyber hygiene (including digital footprint)
and industrial process security.
Actions to ensure good neighbourly
relations
At Fluxys, we provide almost a third of the energy used
by Belgium's households and businesses. We do this
via infrastructure in almost 400 towns, cities and munic-
ipalities, so it is only natural that we want to establish
good neighbourly relations.
Through open and ongoing dialogue, we work along-
side and listen to local residents and operators in the
vicinity of our infrastructure, and we intend to be good
neighbours to all those affected by the construction and
operation of our facilities. The company also ensures
that the construction and operation of its infrastructure
cause minimal disruption.
Designated, permanent point of contact
Owners and operators of land have a designated point
of contact at Fluxys, right from a project's preliminary
phase through to the restoration of a site following
the laying of a pipeline or other works. This allows them
to consult with someone familiar with their concerns
and the features of their land from the outset. These
points of contact are members of a dedicated, specific
team specially tasked with understanding the interests
of landowners and operators and defending these in
their dealings with Fluxys.
Infrastructure construction projects
Transparent communication and community
involvement from the outset
In the case of new infrastructure projects, from the
planning phase onwards Fluxys aims to transparently
provide information to and communicate with the rele-
vant authorities, municipal bodies, local residents and
other parties involved about our intentions in terms of
timing and impact.
Information sessions
In the case of infrastructure projects on a larger scale,
we suggest to municipal authorities that an information
session be held for local residents before the permit
procedures get underway. This gives residents the
chance to discuss the project and its potential impact
with us and enables us, where possible, to take on
board any feedback at the start of the project.
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In addition, local residents can formally ask questions
about the project by means of public surveys. At the
consultation sessions that are part of the permit pro-
cesses, complaints and comments about the project
are noted and dealt with.
Compensation for farmers, horticulturists,
foresters and hunters
Fluxys Belgium builds the vast majority of its facilities
(pipelines and surface stations) in areas used for agri-
culture, horticulture or forest management. The pur-
pose of the land crossed in the land-use plan remains
unchanged. Fluxys does not expropriate land but rather
establishes easements with landowners. With long-
term good neighbourly relations in mind, with regard to
compensation we have signed memorandums of under-
standing (for agriculture) with the country's three largest
agricultural organisations (Boerenbond, Algemeen Boe-
rensyndicaat (ABS) and Fédération Wallonne de l'Ag-
riculture) and (for forestry) with Hubertus (the Flemish
hunting association), Landelijk Vlaanderen and Nature,
Terres et Forêts (NTF).
These agreements set out, based on benchmark mar-
ket prices, the compensation due to those in the agri-
culture, horticulture, forest management or hunting
industries that encounter disruption or are temporarily
unable to use their land during the construction of a
facility. If any problems attributable to the presence of
our pipelines persist after the work has been carried
out, we will deal with these on a case-by-case basis on
the basis of an expert report. Farmers have their own
designated point of contact to this end.
Infrastructure operating period
Providing information and raising awareness
Fluxys Belgium has an ongoing programme to iden-
tify local stakeholders: in consecutive five-year cycles,
we visit all owners and operators of land on which an
underground pipeline is located, or which is located
within the immediate vicinity of such infrastructure. A
similar initiative is being undertaken with representatives
of the police and/or fire services in the towns, cities and
municipalities in which we operate.
During each municipal legislature, we organise an infor-
mation session for the mayor and aldermen concerned
in municipalities housing Fluxys pipelines. In addi-
tion, Fluxys organises various information and aware-
ness-raising initiatives relating to the safety of works
undertaken in the vicinity of our infrastructure. The initi-
atives focus on everyone involved in such works, such
as architects, clients, designers, contractors, owners
and operators, municipalities, notaries and emergency
services. These initiatives generally take the form of
information sessions, publications in specialist journals,
awareness-raising campaigns in the media, or participa-
tion in working groups and federations.
Following up on reports of works
Damage by third parties is the main cause of major
incidents involving pipelines. To avoid such damage,
and because good neighbourly relations also depend
above all on the safe operation of our facilities, anyone
wishing to carry out work near natural gas transmis-
sion infrastructure is legally obliged to notify Fluxys in
advance.
Fluxys responds to every such notification, confirming
whether any natural gas transmission infrastructure
is located in the vicinity of the planned work. If this is the
case, the applicant is sent all the relevant information
and details of further procedures to be followed to carry
out the work safely.
Our staff attend preparatory meetings on a daily basis
with regard to sites where third parties plan to work in
the vicinity of our infrastructure. During these meetings,
they explain the measures that need to be taken and
document the safety arrangements in writing before
any work can actually begin.
Fluxys ensures that the competent authorities are noti-
fied of incidents and violations when work is carried out
near our infrastructure.
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Commitments and objectives
Commitments Objectives
• Maintain high safety standards in an evolving sector and
ensure the safety of local residents and anyone near our
infrastructure.
• Ensure the reliability of our facilities to guarantee security of
supply in order to accelerate the energy transition.
• Zero industrial incidents having a major impact
on the safety of employees, residents and
anyone else connected to our infrastructure
• Fulfil 100% of the confirmed firm capacity
nominations (transport and storage)
Safety
The very nature of our activities (transport of molecules,
terminalling, storage) entails industrial risks to the safety
of our employees, local residents and anyone near our
infrastructure. Operating in complete safety is our top
priority. We are rolling out several initiatives, actions
and investments to prevent these risks (see 'Actions',
p. xx).
Fluxys is a socially responsible transmission system
operator that builds safe infrastructure and operates it
safely. We set a goal of zero industrial incidents having
a major impact on safety. By this, we refer to explo-
sions, fires, uncontrolled gas venting, pollution, etc.
which have a major impact on the safety (life-threaten-
ing injuries or injuries resulting in permanent disability/
death) of local residents and employees.
Reliability
Our reliability is largely measured by the continuity
of our transmission capacity, which guarantees the
security of the energy supply to our customers. Unan-
nounced capacity interruptions can have significant
impacts on our customers, on their activities and on the
energy supply in Belgium and neighbouring countries.
As such, we have set ourselves the target of respecting
all nominations confirmed by our customers in terms of
firm capacity, both for storage and transmission.
Performance indicators
KPIs Unit 2023 2022
# of industrial incidents having a major impact on safety # 0 New
Damage to infrastructure caused by third parties, resulting in a gas
leak
# 0 0
Reduction or interruption in firm transmission capacity # 0 0
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S1. Our workforce - Working conditions - Employee safety
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Negative Potentiel
Ensure the safety
of employees and
residents in an evolving
company (S)
Employee
safety
The nature of Fluxys' activities
poses inherent risks to the safety
of employees, which could impact
their health.
Certain events and circumstances
may cause harm to employees.
These may include illnesses or
other health problems, mental
health problems, or physical
injuries.
Measures
Policies
• HSE policy
• Global Prevention Plan
• Absenteeism policy
Actions
• Safety Management System (SMS)
• Safety culture
• Internal structures for monitoring health, safety and well-being
• Health and safety training
• In-house communication and awareness-raising campaign on safety
• Preventive measures in design, construction and operation
• Audited Safety Management System
Policies (ESRS S1-1)
HSE policy
Health, safety and the environment (HSE) is a respon-
sibility and commitment for both Fluxys and its employ-
ees. The application of this policy is based on principles
of transparency and trust.
Occupational health and safety
• Fluxys is committed to investing in occupational
health and safety and incident prevention.
• Employees and contractors have an indi-
vidual responsibility to actively partici-
pate in occupational health and safety.
• We continuously improve to further
enhance our health and safety culture.
Integrity of our infrastructure
• We provide for safe, reliable and sustain-
able operations for our stakeholders.
• We actively manage risk through a Qual-
ity & Safety Management System.
• We report incidents and learn from experience.
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Global Prevention Plan (2022-2026)
The 2022-2026 Global Prevention Plan (GPP) focuses
on occupational safety and the associated processes
as well as the prevention of psychosocial risks and on
well-being, moving around at work and road safety.
One of the pillars of the plan is to strengthen the safety
culture throughout the organisation.
In addition, the company is committed to lifelong learn-
ing, especially with regard to the safe use of our
infrastructure to transport other molecules, such as
hydrogen and CO
2
.
Absenteeism policy
See ‘Employee engagement: absenteeism’, p. 107.
Actions (ESRS S1-4)
Safety Management System (SMS)
See 'Safe and reliable infrastructure’, p. 97.
Safety culture
In 2023, an internal analysis was carried out on safety
within Fluxys. Following this, a programme encouraging
safe behaviour will be launched in 2024.
Safety training
In 2023, (gas-related) technical, safety and job-specific
training accounted for more than half the number of
hours of training completed. Starting this year, work-
shops have been organised on our external sites to
raise awareness among our employees of the measures
to be taken on polluted external sites. An e-learning
programme on potentially hazardous substances has
been developed and implemented for employees in
technical roles.
Fluxys Belgium uses various e-learning platforms to
periodically remind contractors' employees of the gen-
eral and specific safety rules. Every employee of a
contractor scheduled to work on a Fluxys site or facility
must complete a training module and must demonstrate
that they are familiar with our safety rules. To be able
to provide each contractor with information in their
native language, this module has been extended to
other languages (12 languages instead of the ten avail-
able in 2022) and other sites.
For more information on training, see 'Our work-
force: learning and talent development', p. 111.
For more information on employee well-being and
engagement, see 'Employee engagement', p. 106.
Internal structures for monitoring well-
being (S1-2)
Fluxys Belgium is home to several structures that sup-
port the safety, well-being and health of employees and
contractors, and where actions in this area are taken.
Internal Workplace Health & Safety
Department (SIPPT/IDPBW)
The SIPPT/IDPBW handles the policy on well-being
and prevention and works with the employer to foster
a healthy and safe working environment. It monitors
the proper implementation of well-being legislation,
the health and safety policy and the legal obligations
regarding personal safety.
Committee for Prevention and Protection
at Work (CPPW)
See 'Employee engagement: social dialogue', p. 107.
Local Joint Consultation Committee
See 'Employee engagement: social dialogue', p. 107.
Collective bargaining agreement 90
Collective bargaining agreement CAO/CCT 90 pro-
vides financial incentives for employees to achieve
specific collective health and well-being objectives
and to cut Fluxys Belgium's greenhouse gas emissions,
for example.
In-house communication and
awareness-raising campaign on safety
Fluxys frequently highlights themes related to safety.
Ergonomics, handling of potentially hazardous sub-
stances, and personal and collective protective equip-
ment were all examples of themes addressed in this
connection in 2023.
Preventive measures in design,
construction and operation
'Safe and reliable infrastructure', p. 96.
Audited Safety Management System
See 'Safe and reliable infrastructure', p. 96.
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Commitments and objectives (ESRS S1-5)
Commitments Objectives
Ensure the safety of employees, now and in the future,
with regard to the transport and storage of molecules that
accelerate the energy transition
Zero industrial incidents having a major impact
on safety
The very nature of our activities entails industrial risks
for our employees. We are striving to achieve zero
industrial incidents having a major impact on their
safety. By industrial incident having a major impact on
safety, we refer to explosions, fires, uncontrolled gas
venting, pollution, etc. that have serious consequences
for the safety (life-threatening injuries or injuries
resulting in permanent disability/death) of employees
and local residents. Alongside this objective, Fluxys
also has another internal objective to minimise 'minor'
accidents and incidents linked to employee safety.
The limits defined in this framework are monitored by
internal bodies that track occupational safety, health
and well-being.
Performance indicators (ESRS S1-14)
KPIs Unit 2023 2022
Industrial incident having a major impact on safety # 0 New
ESRS indicators:
Percentage of people in the workforce who are covered by
the company's health and safety management system
% 100 % New
Number of fatalities due to occupational accidents* # 0 0
Occupational accidents resulting in inability to work lasting
more than one day*
# 16 10
Accident frequency : [(number of occupational accidents
x 1,000,000 / number of hours workedl*
# 11.43 New
Number of days lost due to occupational accidents and
number of fatalities resulting from occupational accidents*
# 171 173
* The indicators only refer to internal employees
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Our workforce: diversity and inclusion
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Positive Actual
Encourage diversity,
talent development and
employee engagement (S)
Diversity and
inclusion
Diversity, inclusion and equal
opportunities at Fluxys foster
innovation and have a positive
impact on employees.
A lack of diversity in the
workforce can lead to a business
organisation that lacks the
necessary skills, talents and
experience.
Measures
Policies
• Ethical Code
• Whistleblowing policy
Actions
• Encouraging diversity in recruitment
• Diversity in experience
• Fair processes
• In-house survey on engagement and feedback
• Fostering digital inclusion through various initiatives
• Confidential counsellors
• Our company values: respect, openness, and reliability
Policies (ESRS S1-1)
Ethical Code
Fluxys Belgium's commitment to ethical behaviour is
firmly entrenched in our values. Our Ethical Code cov-
ers a range of areas and defines different principles
including the principles of equal opportunities, human
rights and non-discrimination. We do not tolerate dis-
crimination in any form. We expect our employees and
contractors to treat each other with respect and dignity
and to behave appropriately.
Whistleblowing policy
In 2023, the whistleblowing policy was defined within
Fluxys and communicated internally and externally.
Future actions are planned to raise awareness of the
Code of Ethics. For more information, see Ethics, integ-
rity and efforts to combat corruption, p. 117.
Actions (ESRS S1-4)
Encouraging diversity in recruitment
Fluxys Belgium encourages diversity and complemen-
tary profiles so that all candidates feel welcome, what-
ever their gender, age, background, etc. It is their skills
and talents that make the difference.
Diversity in experience
Fluxys Belgium devotes considerable attention to diver-
sity in terms of experience. For example, this approach
translates to the recruitment of young people with no
or very limited work experience (starter jobs).
In 2023, we hired around a hundred new employees.
Some roles are reserved for colleagues who have lim-
ited professional experience or who have fewer oppor-
tunities on the job market.
Fair processes
The criteria applied to employee remuneration, eval-
uation, career development, training and the work-life
balance are identical for all colleagues at the same level
of seniority and having the same role. The difference in
the average basic salary between men and women is
due to seniority, type of role, and the division between
old and new salary conditions.
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In-house survey on engagement and
feedback (ESRS S1-2)
An in-house survey allows us to keep track of employee
engagement and well-being (see 'Employee engage-
ment', p. 106). Along with feedback, this survey is one of
the ways we can listen to employees and act accordingly
to support the inclusion of everyone.
Coaching sessions and information sessions for manag-
ers and employees are also offered to foster the culture
of openness and feedback within the company. See also
the sections on feedback in 'Employee engagement',
p.109 and 'Learning and talent development', p. 112.
Fostering digital inclusion through
various initiatives
Greater digitalisation is opening up new opportunities
for our activities. Fluxys seizes these opportunities
and helps its employees navigate the digital world via
numerous training courses and coaching sessions. For
more information, see 'Learning and talent develop-
ment', p. 112.
Confidential counsellors
Fluxys employees dealing with certain difficulties at
work, related to their role and/or inappropriate behav-
iour can speak to counsellors during confidential inter-
views. External support services are also offered.
Our company values: respect,
openness and reliability
In 2023, we redefined our values to align with the chal-
lenges we face. These values guide our actions, decisions
and behaviours. Through them, we foster openness to
others and to differences, we encourage mutual respect
and we nurture a climate of trust.
In the years to come, our redefined values will be culti
-
vated through various initiatives.
Commitments and objectives (ESRS S1-5)
Commitments Objectives
At Fluxys, we nurture a work environment where the
diversity of talents is recognised and considered as a
strength and where everyone is welcome, respected and
valued for who they are.
Shore up awareness of diversity and inclusion within
the company by training all managers
16
by 2025 and by
organising an in-house awareness-raising campaign every
two years.
Raising awareness of diversity and inclusion among all
employees and training all managers is a key first step
towards supporting and encouraging diversity and
inclusion in the company. Indeed, a lack of awareness
can lead to unconscious biases, which are vectors of
discrimination. Fluxys has set itself a double objective
for the years to come:
1. Raise awareness of diversity and inclusion
among all employees every two years, with a
first campaign in 2024 and a second in 2026.
2. Ensure that all managers have undergone
training by the end of 2025.
In 2023, senior managers and members of the HR com-
munity participated in workshops or presentations on
the subject.
Performance indicators (ESRS S1-9, S1-16)
Performance indicators Unit 2023 2022
Share of employees under 30 % 10 New
Share of employees aged between 30 and 50 % 50 New
Share of employees over 50 % 40 New
Average base salary ratio (based on FTEs)
Men % 100 100
Women % 92 92
16. A manager is anyone responsible for a team of at least one person.
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Employee engagement (entity specific)
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Positive Potentiel
Encourage diversity,
talent development and
employee engagement (S)
Employee
engagement
The engagement and well-being
of our employees are essential
for Fluxys.
Impact: Numerous initiatives and
our corporate culture contribute
to the engagement and well-
being of our employees in their
everyday lives.
The inability to attract, retain
and secure future talents in
achanging environment and
alack of skills and knowledge
in new developments may
have anegative impact on the
company's efficiency.
Measures
Policies
• HSE policy
• Global Prevention Plan
• Social dialogue policy
• Absenteeism policy
• Telework policy
• Disconnection policy
• Whistleblowing policy
• Salary policy linked to benchmarks
Actions
• Survey on engagement
• Social dialogue
• In-house events
• Group-level initiatives to foster the feeling of belonging
• Encouraging feedback
• Personal coaching and coaching feedback
• Extensive range of training on offer
• Measures and processes to deal with psychosocial risks
• Redefined values
• New way of working
• Fluxtainable
• De Vriendenkring/L’Amicale and Connect & Move
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Policies (ESRS 2, MDR-P)
HSE policy
Our HSE policy comprises three pillars, the first of which
is the well-being of our employees. For more informa-
tion, see 'Employee safety', p. 101.
Global Prevention Plan (2022-2026)
The 2022-2026 Global Prevention Plan also focuses on
employee well-being and psychosocial risks. Moreover,
it sets great store by hybrid working. Furthermore, the
company is committed to supporting training and life-
long learning and nurtures a culture in which feedback
is encouraged and contributes to the well-being and
development of employees. For more information, see
'Learning and talent development', p. 111.
Social dialogue policy
Good industrial relations are vital for company cohe-
sion and business development, which is why Fluxys
Belgium engages in transparent, constructive social
dialogue with all employees, members of the Works
Council, the CPPW, the trade union delegation and exec-
utive representatives. Given the distribution of Fluxys'
activities across different sites, social dialogue is also
carried out on the ground via the Local Joint Consulta-
tion Committee.
2023 was a year of preparation for the trade union elec-
tions to be held in 2024. With the help of the social
partners, we endeavoured to digitalise the process so
that as many employees as possible could participate.
Absenteeism policy
Measuring and monitoring absenteeism gives us an
objective view of the general health of employees.
The level of absenteeism fell in 2023 and remains below
the Belgian market average. As part of our absenteeism
policy, we actively strive to support employees during
their illness as well as before and after their return to
work. Employees have access to personalised advice
and support in this regard. Support is based on regular
contact and cooperation between the employee in
question, their manager, HR and internal and external
prevention and protection at work services. In 2023,
additional efforts were made to support and commu-
nicate with employees absent due to illness and with
their managers.
We also made sure to pay attention to those teams
and colleagues who ensure the continuity of work and
services when an employee is absent.
Telework policy
A telework policy was extended in 2021 to support the
balance between employee flexibility and connectivity.
All employees can telework according to the estab-
lished principles. The resources needed to work from
home are provided.
Disconnection policy
In a constantly online world, disconnecting from time to
time is also important to boost balance and well-being.
Fluxys is evolving, which goes hand in hand with new
digital tools and new ways of working. Technology
allows us to be online anywhere and at any time. At
Fluxys, we advise employees on this matter, with the
support of a disconnection policy. This policy, which
was honed and adapted in 2023, has been commu-
nicated to employees and is available on the intranet.
Whistleblowing policy
In 2023, the whistleblowing policy was defined and
communicated internally and externally (for more infor-
mation, see 'Ethics, integrity and efforts to combat
corruption', p. 117). Training on this subject was also
provided.
This policy supports the culture of openness, feedback
and transparency that Fluxys fosters and encourages.
Salary policy linked to benchmarks
Fluxys has a salary policy that is regularly benchmarked.
Actions (ESRS 2, MDR-A)
Our engagement survey (ESRS S1-2)
In late 2021, we conducted a company-wide survey
about the engagement, well-being and work experi-
ence of our employees. 87% of staff took part. Accord-
ing to the results, over 70% of respondents feel involved
or very involved.
HR monitors the performance of the survey, the results
and the subsequent actions taken.
In 2023, we continued to work on the 2021 results in all
teams and with the social partners. Actions have been
initiated to preserve positive initiatives and to improve
areas of concern. These actions were carried out in
three areas:
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• Work pressure, workload and stress, enabling
all employees to engage with the new way of
working, including the option to telework
• Communication, with an emphasis on inform-
ing, involving and inspiring and, post-pandemic,
the return of plenty of in-person meetings
• Connection and cohesion, with initia-
tives to strength en informal relations and
spontaneous contact after work.
Social dialogue (ESRS S1-8)
100% collective agreements:
Salary and working conditions are set for all employ-
ees through consultation and negotiation in collective
agreements.
• 63% of active Fluxys Belgium and Fluxys LNG
employees are salaried staff members. Their
salary and working conditions are partly negoti-
ated at sectoral level through collective bargaining
agreements; in addition, certain salary and work-
ing conditions are determined at company level
and negotiated with local staff representatives.
• 37% of active employees are executives. Their
salary and working conditions are based on
our salary policy and linked to benchmarks.
Consultation within various consultation
bodies
Fluxys Belgium is home to several bodies to promote
social dialogue.
Works Council
Socio-economic issues are discussed every month
within the Works Council. A statement of company and
employment results is also presented periodically and
complete financial and economic information is commu-
nicated each year to staff representatives. Employees
elect their representatives to the Works Council every
four years.
Committee for Prevention and Protection
at Work (CPPW)
Meeting every month, the CPPW is a consultative
body between employees, the employer and line
management where they can discuss issues and
problems concerning employee well-being. The com-
mittee makes proposals concerning, among other
aspects, the policy for preventing accidents, inci-
dents and occupational illnesses, the Global Preven-
tion Plan and the annual action plan. CPPW members
are elected by staff every four years.
Local Joint Consultation Committee
The Local Joint Consultation Committee is a local con-
sultative body comprising the trade union and employer
delegations. It keeps an eye on events at local level and
proposes solutions that do not fall within the exclusive
remit of other consultation bodies.
Trade union delegations and points of
contact
Employee representation organisations appoint
trade union delegates who represent salaried work-
ers affiliated with a union. These delegations are
appointed locally so that social dialogue is as close
as possible to the environment of staff members. For
smaller sites, trade unions can appoint a contact person
responsible for promoting social dialogue at local level.
Quarterly meetings are also held with each trade union
to discuss specific issues that concern them.
Executive representation
Fluxys organises periodic consultations with executive
representatives, during which topics specifically related
to executives are discussed. In this context, framework
agreements can also be concluded regarding the con-
ditions of employment of executives.
Working groups
To promote social dialogue, Fluxys also organises work-
ing groups with staff representatives. A monthly work-
ing group prepares the Works Council meeting and ad
hoc working groups are set up when specific topics
need to be discussed and prepared (e.g. on mobility,
trade union elections, work regulations).
In-house events
In-house events bring colleagues together at key times:
they promote connectivity, the exchange of information
but also foster employee engagement.
Feedback is a gift
Fluxys encourages feedback to aid the performance,
development and well-being of employees. Training
and/or coaching on this subject is offered to employees
and managers to develop their feedback skills (see
‘Learning and talent development', p. 112).
Extensive range of training on offer
(soft skills, safety, well-being, specific
technical skills, etc.)
Fluxys offers employees numerous opportunities for
training and development. Training covers a range of
topics, including well-being and stress management. In
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the summer, Summer Coaching gave Fluxys employees
the opportunity to receive coaching and advice on
feedback and managing conflict, time and stress.
Recently, e-Bib, an online library, was shared with
employees, giving more advice on well-being at work
(see 'Learning and talent development', p. 111).
Measures and processes to deal with
psychosocial risks
The psychosocial burden at work is one of the facets of
well-being. A support process and associated solutions
are also in place in the event of inappropriate behaviour
or psychosocial problems. These solutions include con-
fidential counsellors, psychosocial prevention advisors,
specific support via external psychologists, etc.
Managers are regularly made aware of psychosocial
risks.
Redefined values
In 2023, we also redefined our values. The energy
transition poses new challenges, and our values are
essential to overcoming these challenges. Openness,
respect and reliability: three values resulting from a
consultation process involving our employees.
Initial communication sessions were organised to share
these new values with employees. A wider communica-
tion and change approach has been defined to cultivate
our new values.
New way of working
Given the new ways of working (e.g. telework, the many
forms of hybrid working), the office now serves a new
function, becoming a meeting point and source of con-
nectivity beyond just work. We are gradually adding a
new dimension to office work according to the new way
of working (NWOW) principles. This is a real change
process involving the redevelopment of the head office
in Brussels, based on an overarching theme: we are
a large team and together we are making Fluxys the
essential infrastructure partner to accelerate the energy
transition.
Fluxtainable
2023 was a key year in our sustainable development
journey. The double materiality assessment required
by the CSRD was an opportunity for Fluxys to review
its vision in terms of sustainable development. This
resulted in Fluxtainable, a chance to engage and moti-
vate employees on this key topic. Initial communications
on this subject were launched in 2023 and will continue
in 2024. For more information, see 'Double materiality',
p. 68.
De Vriendenkring/L’Amicale and Connect
& Move
De Vriendenkring/L'Amicale is a group of employees
who organise sports and cultural activities throughout
the year for their colleagues, partners and children. This
is a form of voluntary engagement that fosters cohesion
and togetherness within the company. Fluxys actively
supports this group and its initiatives.
The Connect & Move initiative encourages colleagues
to exercise together, form teams and take part in sports
events.
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Commitments and objectives (ESRS 2, MDR-T)
Commitments Objectives
At Fluxys, we foster the well-being and engagement of
our employees. Engaged and enthusiastic employees are
our most important asset to achieve our mission today,
while actively contributing to the energy transition of
tomorrow.
Maintain the proportion of engaged employees above 70%
Employee engagement, enthusiasm, motivation and
energy are essential to achieving our mission: shaping
a bright energy future. The energy transition poses
additional challenges which are met by the heart of our
company: the employees.
Fluxys monitors the level of engagement of its employ-
ees by means of a regular survey. In 2021, the rate of
engaged and very engaged employees exceeded 70%.
In light of the energy transition and the transformation
it brings, we are aiming to maintain the proportion of
engaged employees (engaged and very engaged)
above 70%. Employee engagement contributes
to Fluxys' appeal as an employer and to employee
retention. It is also one of the indicators of employee
well-being.
A new internal survey is planned for late 2024 or early
2025. New actions and new focus areas will then be
identified to bolster employee engagement.
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Our workforce: learning and talent development
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Positive Actual
Encourage diversity,
talent development and
employee engagement (S)
Learning and
development
Providing access to all forms
of training and internal mobility
opportunities allows employees
to undergo continuous training,
to be able to carry out our
mission today while being ready
to support the energy transition.
Italso boosts their well-being and
employability.
The inability to attract, retain
and secure future talents in a
changing environment and a
lack of skills and knowledge in
new developments may have a
negative impact on the company's
efficiency.
Measures
Policies
• Global Prevention Plan 2022-2026
Actions
• The onboarding process
• Extensive catalogue and range of training courses offered
• On-the-job training
• Training and networking
• Feedback
• Internal mobility of talents
• Digital Day and digital coaching
Policies (ESRS S1-1)
Global Prevention Plan 2022-2026
The 2022-2026 Global Prevention Plan highlights dif-
ferent areas including lifelong learning with a focus on
skills, training and preparation for the future with a more
specific focus on new molecules and digitalisation.
This plan covers themes and projects that may have
a positive influence on employees. The themes and
projects are defined in consultation between top man-
agement, line management, the SIPPT/IDPBW and
employee representatives.
Actions (ESRS S1-4)
The onboarding process
In order to support the inclusion of new employees, an
onboarding process has been developed with days and
events for all new arrivals and other specific training
depending on the role in question. This process begins
before a new hire's first day of work, via an Enboarder
platform to guide future colleagues. Colleagues respon-
sible for onboarding new hires also support these future
new employees.
Learning and connection are at the heart of this process,
which is punctuated by discussions with management.
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Extensive catalogue and range of
training courses offered
Fluxys offers its internal employees an extensive range
of training and learning resources in order to allow them
to continuously enhance their knowledge and skills.
Fluxys also provides for development opportunities.
In our corporate culture, learning and development is
a top priority.
Fluxys sets great store by the development and
acquisition of technical skills linked to core activities.
In addition to this training, employees also have the
opportunity to expand their soft skills (communication,
feedback, etc.) as well as their linguistic and digital
skills.
This comes in different formats: welcome and onboard-
ing programmes, job-related training, online train-
ing, group training, hybrid training, Lunch & Learn,
coaching, etc.
Employees also have access to information at all times
via the intranet and via the three portals available to
them: KeyPoint, OASE and the online library e-Bib.
While some training courses are mandatory, others
are left to the discretion of the employee, who is in
charge of their own development.
Fluxys updates the training catalogue regularly. This
catalogue supports our strategic aims and is accessible
to all employees.
On-the-job training
On-the-job training refers to all initiatives that aim to
teach employees the skills and/or impart the knowl-
edge necessary to perform their jobs while the employ-
ees are doing their work. This allows them to learn
through hands-on and active participation.
Training and networking
Meet & Greets as key events in the
onboarding of new colleagues
New hires are invited to a Meet & Greet day during
which they learn about Fluxys' activities while network-
ing with each other and with management. Informal
events are also planned to strengthen connection and
put new employees at ease.
Visits to Zeebrugge Terminal are back
After being unable to visit the terminal for several years
due to COVID, 136 colleagues had the opportunity to
visit the Zeebrugge terminal and connect over a fun
activity.
Lunch & Learn: a new event for 2023
With two particularly successful events under our belts
already, the Lunch & Learn aims to give employees
the opportunity to stay informed on certain key topics
while having fun with colleagues. During these ses-
sions, our in-house specialists provide insight into a
given subject and participants can ask them questions.
Feedback
At Fluxys, we encourage feedback as a source of learn-
ing and development. Conversations between manag-
ers and their direct reports are key to aiding employee
development.
Training and coaching sessions for managers and/
or employees are also offered to foster the culture of
openness and feedback within the company.
Internal mobility of talents
Fluxys gives internal talents the opportunity to take
on new responsibilities and roles. Internal mobil-
ity is encouraged and specific development actions
are rolled out. In 2023, 46 employees took on new
challenges.
Digital Day and digital coaching
Greater digitalisation is opening up new opportunities
for our activities. Fluxys seizes these opportunities
and supports this evolution by helping its employees
navigate the digital world. In addition to conventional
training, digital inclusion is also bolstered by means of
innovative initiatives such as Digital Day and coach-
ing by Digital Coaches, who are tasked with helping
employees improve their digital skills via on-the-job
coaching or inspiration/training sessions.
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Commitments and objectives (ESRS S1-5)
Commitments Objectives
We foster and maintain the development of talents at
Fluxys by encouraging lifelong learning and continuous
training throughout our employees' careers. Every
employee's talent can be developed through training,
exciting projects and opportunities for internal mobility.
The objective associated with this material topic is currently
being developed. It will be published in the 2025 annual
report covering the 2024 fiscal year.
Performance indicators (ESRS S1-13)
Performance indicators Unit 2023 2022
Average number of training days per employee # 6.24 5.64
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Governance
Material topics linked to governance:
Customer Care ............................................................. p. 115
Ethics, integrity and efforts ............................... p. 117
to combat corruption
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Customer care (entity specific)
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Positive Actual
Conduct our activities
responsibly
Customer care The quality of information
communicated to customers
contributes to the proper
functioning of the market and
security of supply in Belgium and
neighbouring countries.
Discriminatory treatment
of customers and a lack
of transparency in sharing
information can lead to dissatisfied
customers, which could have
financial consequences for Fluxys.
Measures
Policies
• Code of conduct
Actions
• Annual audit of the proper application of the Code of Conduct
• Transparent service offering
• A sales team that listens to customers
• A service offering tailored to market needs
• Market consultations and information sessions
• Regular monitoring of compliance with commitments regarding
non-discriminatory access to the network by the compliance
coordinator
• Points of contact for complaints
Policies (ESRS 2, MDR-P)
Code of Conduct (CREG)
The Code of Conduct is introduced by the Gas Act
and established by the Commission for Electricity and
Gas Regulation (CREG) following consultation. It is part
of the regulatory framework and in particular sets out
the conditions of connection and access to transport
infrastructure as well as the conditions linked to bal-
ancing services.
Actions (ESRS 2, MDR-A)
Audit of the correct application of the
Code of Conduct
Fluxys Belgium's sales teams work in accordance with
the Code of Conduct. An annual audit verifies the cor-
rect application of the code. The results of this audit are
shared with the Fluxys Belgium Corporate Governance
Committee and with CREG.
Transparent service offering
In accordance with the regulatory framework and in
particular with transparency obligations, information on
Fluxys Belgium's service offering, standard contracts,
tariffs, etc. is publicly available on our website.
In the interest of continuous improvement and simpli-
fication, we anticipate the needs of our customers by
regularly adapting this offer. In the event of a modifi-
cation, in accordance with our Code of Conduct we
consult the market on the planned modifications and
we collect any comments before officially requesting
approval from CREG. The consultation results are also
published on the website.
A sales team that listens to customers
Our sales team is the point of contact for our current
and potential customers. The team helps customers
make the best use of our services. The team also keeps
track of customers' expectations in terms of the devel-
opment of new services or adjustments to the com-
mercial offer.
A service offering tailored to market
needs
The geopolitical situation resulting from the war in
Ukraine has profoundly changed the dynamics on the
gas markets and the direction of flows in Europe. As in
2022, our sales team continued its efforts to maximise
the capacity on offer and contribute to security of sup-
ply in Belgium and neighbouring countries (see 'Legal
and regulatory framework', p. 59).
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Market consultations and information
sessions
When adapting existing services, developing new ser-
vices, proposing new tariffs or suggesting amendments
to contractual documents, Fluxys always organises a
market consultation in accordance with the regulatory
framework.
Only after this consultation can the documents be
submitted to the regulator, CREG, for approval. Fluxys
regularly holds information sessions to guide custom-
ers through the various planned changes, explain the
associated process to them, collect their feedback and
answer any questions they may have. Customers can
also contact us with any specific questions.
In 2023, nine consultations were held in Belgium and
the associated communication actions were rolled
out. That same year, various events were organised,
including the End User Day (for industrial customers
directly connected to the Fluxys network), the DSO Day
(for distribution system operators) and participation in
E-world (annual fair for stakeholders in the energy mar-
ket where Fluxys Belgium and the other Fluxys Group
subsidiaries have the opportunity to meet current and
potential customers).
Regular monitoring of compliance
with commitments regarding non-
discriminatory access to the network by
the compliance coordinator
A compliance coordinator has been appointed within
the company to ensure compliance with its commit-
ments regarding non-discriminatory access to the
network.
Every year, the compliance coordinator compiles a
report on compliance with commitments regarding
non-discrimination, transparency and confidentiality.
The report is discussed in the Corporate Governance
Committee and is available on the Fluxys website. To
find out more about the legal and regulatory framework
and the Code of Conduct, see 'Legal and regulatory
framework', p. 58.
Points of contact for complaints
Customers and other market players can contact the
sales team, the Fluxys Belgium compliance coordinator
or CREG to lodge complaints regarding our services.
Commitments and objectives (ESRS 2, MDR-T)
Commitments Objectives
At Fluxys, we are committed to satisfying our customers
and treating them fairly.
In the event of changes, new products or new subscription
windows, roll out appropriate communication initiatives to
provide our customers with information.
At Fluxys, we are committed to satisfying our customers
and treating them fairly. In our regulated environment,
customer satisfaction depends on the quality of the
information provided to them, for instance. As such, our
communication with them is vital.
Our products, services and tariffs change regularly.
In these situations and in accordance with regulatory
requirements, Fluxys consults the market in order to
present suggested changes and collect any feedback.
Furthermore, transport or storage capacities are regu-
larly put up for sale by Fluxys, which notifies the market.
In this context, our objective is to roll out suitable com-
munication initiatives (e.g. email, one-page summaries
published on the website, information sessions) in order
to fulfil our transparency obligations and ensure that
customers have useful and sufficient information.
Performance indicators (ESRS 2, MDR-M)
KPI Unit 2023 2022
Share of market communication/consultation % 100 New
This performance indicator measures the effectiveness
of Fluxys Belgium's and Fluxys LNG's communication
and transparency by comparing the sum of the infor-
mation published on a market consultation and the
information sessions organised with the total number
of market consultations.
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G1 - Ethics, integrity and efforts to combat corruption
ESG strategy Topic Impact materiality
(ESRS 2 SBM-3)
Risk
(ESRS 2 SBM-3)
Negative Potentiel
We conduct our activities
responsibly (G)
Ethics, integrity
and efforts
to combat
corruption
A lack of ethics or proven
corruption can have societal
impacts including on respect for
human rights (e.g. loss of trust,
potential impact on access to
energy for all).
A lack of ethics or proven
corruption within Fluxys and its
value chain may have a negative
impact on the commercial
reputation and/or financial results
of the company.
Measures
Policies
• Ethical Code
• Procedure for reporting unethical behaviour
• Whistleblowing policy
• General terms and conditions of purchase: respect for human rights
in the supply chain
Actions
• Training in the whistleblowing policy
• Training in the Ethical Code
Governance (ESRS 2)
For more information about Fluxys Belgium's govern-
ance model, see 'Our structure and governance', p. 48.
Policies (ESRS G1-1)
Ethical Code
Fluxys' commitment to ethical behaviour is firmly
entrenched in our values. The current Fluxys Ethical
Code came into force in 2022 and was widely dissemi-
nated internally. It can be viewed on the Fluxys website
and the intranet. It encompasses a wide range of areas:
a safe and respectful working environment; thought-
ful interactions with business partners (including gifts
and events); human rights; the fight against corruption;
money laundering; conflicts of interest; and general
principles about how the company competes.
The Code also expects customers, suppliers and other
partners to comply with equivalent standards. As Fluxys
redefined its values in 2023, an adaptation of the Ethi-
cal Code is planned for 2024.
Procedure for reporting unethical
behaviour (GR 1-1, ESRS S1-3 §32 (b-c) &
ESRS S2-3 §27(b))
Our employees can contact their manager or the Ethics
& Compliance Team for advice on problematic situ-
ations or to report a (potential) violation of the ethics
rules. Employees, customers, suppliers and partners
can also email ethics@fluxys.com to report a (potential)
violation in complete confidentiality.
In accordance with our Ethical Code and the European
directive, Fluxys Belgium has developed a formal pro-
cedure regarding whistleblowers and the protection
thereof (see below). The Ethical Code specifies how
complaints will be handled.
Whistleblowing policy (ESRS G1-1, ESRS
S1-3 §32(b-c) and ESRS S2-3 §27(b))
In 2023, Fluxys' whistleblowing policy was outlined and
explained both internally and externally during several
information sessions. It is available on the website and
on the intranet. With this policy, we are placing ethical
conduct at the top of our priorities and aligning our-
selves with the applicable laws and regulations.
As such, we want to set out a formal and secure frame-
work for reporting acts that violate applicable laws
or a company's ethical principles. Confidentiality and
protection are key concepts in this regard.
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Anyone having reasonable suspicion of misconduct can
email whistleblowing@fluxys.com. The policy specifies
how reports will be handled, as well as the mechanisms
in place to protect whistleblowers.
General terms and conditions of
purchase: respect for human rights in
the supply chain (ESRS G1-2)
Fluxys Belgium's general terms and conditions of pur-
chase for suppliers impose various human rights obli-
gations on contractors, including the following:
• The obligation to insure personnel
against occupational accidents
• The obligation to comply with the laws regard-
ing occupational health and safety
• The granting of a minimum wage to employ-
ees, the payment of wages, obligations regard-
ing the environment and its protection
• The ban on employing foreign work-
ers residing in Belgium illegally
Actions (ESRS G1-3)
Training in the whistleblowing policy
The whistleblowing policy was rolled out in 2023. It
was communicated in-house to all employees. Training
was organised at senior management level to explain
in more detail the backdrop to this policy, as well as
management's role when employees wish to report an
event. In doing so, we are striving to foster a culture in
which employees are comfortable speaking up.
Training in the Ethical Code
The Ethical Code is shared with each new employee. It
is also made available to all staff and is a reference tool
within the company.
We provide more specific information and training to
employees most exposed to certain ethical risks, such
as the Procurement Department, management, or the
Business Development Department.
A new training course is planned from 2024 onwards
following the update of our Ethical Code.
Commitments and objectives
Commitments Objectives
We provide for a safe and respectful working
environment, maintain high standards in terms of human
rights and are committed to conducting business ethically
by being responsible in dealings with our business
partners.
Train all employees in the Ethical Code every three years,
including new hires
Training and regular awareness-raising among employ-
ees are essential levers to ensure knowledge of and
compliance with the Ethical Code and related policies.
This is why we aim to train all employees, including new
hires, in the Ethical Code every three years.
More specifically, in 2024 we will develop a new training
course specific to the Ethical Code and associated pol-
icies. Our goal is for all employees to have completed
the course by the end of 2026.
Performance indicators (ESRS G1-4)
Performance indicators / ESRS indicators Unit 2023
Number of convictions for violations of anti-corruption and anti-bribery laws # 0
Amount of fines for violations of anti-corruption and anti-bribery laws # 0
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Annexes
Methodology for calculating ........................... p. 121
greenhouse gas emissions
(Scope 1 and 2)
CSRD overview table ..............................................p. 122
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Methodology for calculating greenhouse gas emissions
(Scope 1 and 2)
Purpose
This document describes the methodology to calcu-
late Fluxys’ scope 1 and 2 emissions. This methodol-
ogy is largely based on the reporting principles of the
GHG-Protocol.
Scope and sites
• Scope 1 and 2 emissions
• All the relevant sources from our Belgian activities
and sites where Fluxys has operational control.
Definitions
Scope 1
Direct GHG-emissiosn from sources that we owned and controlled.
1. Sources of CO
2
CO
2
emissions from gas consumption:
• Stationary combustion: gas turbines, gas
engines, boilers and heaters in facilities where
Fluxys Belgium has the operational control.
• Consumption of office buildings (headquar-
ters and regional operating centres)
• Combustion via flaring on our LNG ter-
minal facility or during interventions
• Fleet (CNG vehicles)
• CO
2
emissions relating to die-
sel and gasoline consumption
– Fleet of vehicles
– Emergency generators
2. Sources of CH
4
• Pneumatic emissions: emissions from
pneumatic regulation systems
• Fugitive emissions: emissions due to seal-
ing problems on some equipment (flanges,
pipe equipment, valves, joints, seals)
• Operational emissions: emissions due to machinery
starting and stopping and incomplete combustion
• Interventions: the volume of residual gas
released into the air during interventions
• Incidents: volume released into the air due to
emergency breakdowns/shutdowns or due to
pipeline damage caused by third parties.
For the purpose of our calculation, we assume that 1 kg
of methane contributes 29.8 times as much to climate
change as 1 kg of CO
2
(GWP100 = 29.8, according to
the sixth IPCC Report).
Scope 2
The CO
2
footprint of the generation of the electric-
ity purchased. As stipulated in the Greenhouse Gas
Protocol, Scope 2 emissions physically occur at the
facility where the electricity is generated.
Reported emissions
With regard to the company fleet: since we do not know
the origin of the electricity used by the cars (charged
at home or via public charging stations), we conserva-
tively calculated CO
2
eq
Scope 2 emissions for this specific
usage based on the average carbon intensity of the Bel-
gian electricity mix in 2023.
#
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122
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
CSRD overview table
The table below provides an overview of the various
transparency obligations to be fulfilled under the CSRD
and ESRS. The 'Page number' column indicates which
topics have been identified as not being material for
Fluxys. Such topics were identified in line with the dou-
ble materiality assessment conducted by Fluxys. This
assessment is detailed in 'Double materiality assess-
ment', p. 68.
Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS 2
General
disclosures
BP-1 General
information
General basis for preparation of
sustainability statements
3 ; 4 ; 5 (a) ; 5 (b) i. ;
5 (b) ii. ; 5 (c) ; 5 (d) ;
5 (e)
*
ESRS 2
General
disclosures
BP-2 General
information
General basis for preparation of
sustainability statements
- Disclosures in relation to specific
circumstances
- Disclosures in relation to specific
circumstances - Time horizons
- Disclosures in relation to specific
circumstances - Value chain estimation
- Disclosures in relation to specific
circumstances - Sources of estimation and
outcome uncertainty
- Disclosures in relation to specific
circumstances - Changes in preparation or
presentation of sustainability information
- Disclosures in relation to specific
circumstances - Reporting errors in prior
periods
- Disclosures in relation to specific
circumstances - Disclosures stemming
from other legislation or generally
accepted sustainability reporting
pronouncements
- Disclosures in relation to specific
circumstances - Incorporation by
reference
- Disclosures in relation to specific
circumstances - Use of phase-in
provisions in accordance with Appendix
C of ESRS 1
6 ; 7 ; 8 ; 9 (a) ;
9 (b) ; 10 (a) ; 10 (b) ;
10 (c) ; 10 (d) ; 11 (a) ;
11 (b) i. ; 11 (b) ii. ; 12 ;
13 (a) ; 13 (b) ; 13 (c) ;
14 (a) ; 14 (b) ; 14 (c) ;
15 ; 16 ; 17 (a) ;
17 (b) ; 17 (c) ; 17 (d) ;
17 (e)
*
ESRS 2
General
disclosures
GOV-1 Governance
(GOV)
The role of the administrative, management
and supervisory bodies
19 ; 20 (a) ; 20 (b) ;
20 (c) ; 21 (a) ;
21 (b) ; 21 (c) ; 21 (d) ;
21 (e) ; 22 (a) ;
22 (b) ; 22 (c) i. ;
22 (c) ii. ; 22 (c)
iii. ; 22 (d) ; 23 (a) ;
23 (b)
95
ESRS 2
General
disclosures
GOV-2 Governance
(GOV)
Information provided to and sustainability
matters addressed by the undertaking’s
administrative, management and
supervisory bodies
24 ; 25 ; 26 (a) ;
26 (b) ; 26 (c)
*
ESRS 2
General
disclosures
GOV-3 Governance
(GOV)
Integration of sustainability-related
performance in incentive schemes
27 ; 28 ; 29 (a) ;
29 (b) ; 29 (c) ;
29 (d) ; 29 (e)
*
ESRS 2
General
disclosures
GOV-4 Governance
(GOV)
Statement on due diligence
30 ; 31 ; 32 ; 33
*
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
#
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123
Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS 2
General
disclosures
GOV-5 Governance
(GOV)
Risk management and internal controls over
sustainability reporting
34 ; 35 ; 36 (a) ;
36 (b) ; 36 (c) ;
36 (d) ; 36 (e)
*
ESRS 2
General
disclosures
SBM-1 Strategy
(SBM)
Strategy, business model and value chain
38 ; 39 ; 40 (a) i. ;
40 (a) ii. ; 40 (a) iii. ;
40 (a) iv. ; 40 (b) ;
40 (c) ; 40 (d) i. ;
40 (d) ii. ; 40 (d) iii. ;
40 (d) iv. ; 40 (e) ;
40 (f) ; 40 (g) ; 41 ;
42 (a) ; 42 (b) ;
42 (c)
73; 90; 96;
101; 104;
106; 111; 115;
117
ESRS 2
General
disclosures
SBM-2 Strategy
(SBM)
Interests and views of stakeholders
43 ; 44 ; 45 (a) i. ;
45 (a) ii. ; 45 (a) iii. ;
45 (a) iv. ; 45 (a)
v. ; 45 (b) ; 45 (c) i. ;
45 (c) ii. ; 45 (c) iii. ;
45 (d)
70; 73; 90;
96; 101; 104;
106; 111; 115;
117
ESRS 2
General
disclosures
SBM-3 Strategy
(SBM)
Material impacts, risks and opportunities and
their interaction with strategy and business
model
46 ; 47 ; 48 (a) ;
48 (b) ; 48 (c) i. ;
48 (c) ii. ; 48 (c) iii. ;
48 (c) iv. ; 48 (d) ;
48 (e) i. ; 48 (e)
ii. ; 48 (f) ; 48 (g) ;
48 (h) ; 49
73; 90; 96;
101; 104;
106; 111; 115;
117
ESRS 2
General
disclosures
IRO-1 Impact, risk
and
opportunity
management
Description of the processes to identify
and assess material impacts, risks and
opportunities
51 ; 52 ; 53 (a) ;
53 (b) i. ; 53 (b)
ii. ; 53 (b) iii. ;
53 (b) iv. ; 53 (c)
i. ; 53 (c) ii. ; 53 (c)
iii. ; 53 (d) ; 53 (e) ;
53 (f) ; 53 (g) ;
53 (h)
70, 71
ESRS 2
General
disclosures
IRO-2 Impact, risk
and
opportunity
management
Disclosure requirements in ESRS covered
by the undertaking’s sustainability statement
54 ; 55 ; 56 ; 57 ;
58 ; 59
71; 122-130
ESRS 2
General
disclosures
MDR-P Impact, risk
and
opportunity
management
Policies adopted to manage material
sustainability matters
63 ; 64 ; 65 (a) ;
65 (b) ; 65 (c) ;
65 (d) ; 65 (e) ;
65 (f)
77; 80; 90;
96; 101 104;
107; 111; 115;
117
ESRS 2
General
disclosures
MDR-A Impact, risk
and
opportunity
management
Actions and resources in relation to material
sustainability matters
66 ; 67 ; 68 (a) ;
68 (b) ; 68 (c) ;
68 (d) ; 68 (e) ;
69 (a) ; 69 (b) ;
69 (c)
77; 80; 90;
96; 101 104;
107; 111; 115;
117
ESRS 2
General
disclosures
MDR-M Metrics
and targets
Metrics in relation to material sustainability
matters
73 ; 74 ; 75 ; 76 ;
77 (a) ; 77 (b) ;
77 (c) ; 77 (d)
80; 82; 95;
100; 103; 116
ESRS 2
General
disclosures
MDR-T Metrics
and targets
Tracking effectiveness of policies and
actions through targets
78 ; 79 (a) ; 79 (b) ;
79 (c) ; 79 (d) ;
79 (e) ; 80 (a) ;
80 (b) ; 80 (c) ;
80 (d) ; 80 (e) ;
80 (f) ; 80 (g) ;
80 (h) ; 80 (i) ;
80 (j) ; 81 (a) ; 81 (b)
i. ; 81 (b) ii.
81; 92; 100;
105; 110; 113;
116; 118
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
124
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Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS E1
Climate
change
GOV-3 Governance
(GOV)
Integration of sustainability-related
performance in incentive schemes
13
*
ESRS E1
Climate
change
E1-1 Strategy
(SBM)
Transition plan for climate
change mitigation
14 ; 15 ; 16 (a) ;
16 (b) ; 16 (c) ;
16 (d) ; 16 (e) ; 16 (f) ;
16 (g) ; 16 (h) ; 16 (i) ;
16 (j) ; 17
73
ESRS E1
Climate
change
SBM-3 Strategy
(SBM)
Material impacts, risks and opportunities
and their interaction with strategy and
business model
18 ; 19 (a) ; 19 (b) ;
19 (c)
73
ESRS E1
Climate
change
IRO-1 Impact, risk
and
opportunity
management
Description of the processes to identify and
assess material climate-related impacts,
risks and opportunities
20 (a) ; 20 (b) i. ;
20 (b) ii. ; 20 (c) i. ;
20 (c) ii. ; 21
69; 74
ESRS E1
Climate
change
E1-2 Impact, risk
and
opportunity
management
Policies related to climate change mitigation
and adaptation
22 ; 23 ; 24 ;
25 (a) ; 25 (b) ;
25 (c) ; 25 (d) ;
25 (e)
77; 80
ESRS E1
Climate
change
E1-3 Impact, risk
and
opportunity
management
Actions and resources in relation to climate
change policies
26 ; 27 ; 28 ;
29 (a) ; 29 (b) ;
29 (c) i. ; 29 (c) ii. ;
29 (c) iii.
76; 77; 80; 82
ESRS E1
Climate
change
E1-4 Metrics
and targets
Targets related to climate change mitigation
and adaptation
30 ; 31 ; 32 ; 33 ;
34 (a) ; 34 (b) ;
34 (c) ; 34 (d) ;
34 (e) ; 34 (f)
81
ESRS E1
Climate
change
E1-5 Metrics
and targets
Energy consumption and mix
- Energy consumption and mix -
Energy intensity per net turnover
54 ; 55 ; 56 ; 57 ;
58 ; 59
82
ESRS E1
Climate
change
E1-6 Metrics
and targets
Gross Scope 1, 2, 3 emissions
and total GHG emissions
- GHG intensity per net turnover
66 ; 67 ; 68 (a) ;
68 (b) ; 68 (c) ;
68 (d) ; 68 (e) ;
69 (a) ; 69 (b) ;
69 (c)
70; 82
ESRS E1
Climate
change
E1-7 Metrics
and targets
GHG removal and mitigation projects
financed through carbon credits
56 (a) ; 56 (b) ;
57 (a) ; 57 (b) ;
58 (a) ; 58 (b) ;
59 (a) ; 59 (b) ; 60 ;
61 (a) ; 61 (b) ; 61 (c)
*
ESRS E1
Climate
change
E1-8 Metrics
and targets
Internal carbon pricing
62 ; 63 (a) ; 63 (b) ;
63 (c) ; 63 (d)
82
ESRS E1
Climate
change
E1-9 Metrics
and targets
Potential financial effects from material
physical and transition risks and potential
climate-related opportunities
64 (a) ; 64 (b) ;
64 (c) ; 65 (a) ;
65 (b) ; 66 (a) ;
66 (b) ; 66 (c) ;
66 (d) ; 67 (a) ;
67 (b) ; 67 (c) ;
67 (d) ; 67 (e) ;
68 (a) ; 68 (b) ;
69 (a) ; 69 (b) ; 70
*
ESRS E2
Pollution IRO-1 Impact, risk
and
opportunity
management
Description of the processes to identify and
assess material pollution-related impacts,
risks and opportunities
11 (a) ; 11 (b)
**
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
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125
Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS E2
Pollution E2-1 Impact, risk
and
opportunity
management
Policies related to pollution
12 ; 13 ; 14 ; 15 (a) ;
15 (b) ; 15 (c)
**
ESRS E2
Pollution E2-2 Impact, risk
and
opportunity
management
Actions and resources related to pollution
16 ; 17 ; 18 ; 19 (a) ;
19 (b) ; 19 (c)
**
ESRS E2
Pollution E2-3 Metrics
and targets
Targets related to pollution
20 ; 21 ; 22 ; 23 (a) ;
23 (b) ; 23 (c) ;
23 (d) ; 24 (a) ;
24 (b) ; 24 (c) ; 25
**
ESRS E2
Pollution E2-4 Metrics
and targets
Pollution of air, water and soil
26 ; 27 ; 28 (a) ;
28 (b) ; 29 ; 30 (a) ;
30 (b) ; 30 (c) ; 31
**
ESRS E2
Pollution E2-5 Metrics
and targets
Substances of concern and substances of
very high concern
32 ; 33 ; 34 ; 35
**
ESRS E2
Pollution E2-6 Metrics
and targets
Potential financial effects from pollution-
related impacts, risks and opportunities
36 ; 37 ; 38 (a) ;
38 (b) ; 39 (a) ;
39 (b) ; 39 (c) ;
40 (a) ; 40 (b) ;
40 (c) ; 41
**
ESRS E3
Water and
marine
resources
IRO-1 Impact, risk
and
opportunity
management
Description of the processes to identify
and assess material water and marine
resources-related impacts, risks and
opportunities
8 (a) ; 8 (b)
**
ESRS E3
Water and
marine
resources
E3-1 Impact, risk
and
opportunity
management
Policies related to pollution
9 ; 10 ; 11 ; 12 (a) i. ;
12 (a) ii. ; 12 (a) iii. ;
12 (b) ; 12 (c) ; 13 ; 14
**
ESRS E3
Water and
marine
resources
E3-2 Impact, risk
and
opportunity
management
Actions and resources related to pollution
15 ; 16 ; 17 ; 18 (a) ;
18 (b) ; 18 (c) ; 18 (d) ;
19
**
ESRS E3
Water and
marine
resources
E3-3 Metrics
and targets
Targets related to pollution
20 ; 21 ; 22 ; 23 (a) ;
23 (b) ; 23 (c) ;
24 (a) ; 24 (b) ;
24 (c) ; 25
**
ESRS E3
Water and
marine
resources
E3-4 Metrics
and targets
Pollution of air, water and soil
26 ; 27 ; 28 (a) ;
28 (b) ; 28 (c) ;
28 (d) ; 28 (e) ; 29
**
ESRS E3
Water and
marine
resources
E3-5 Metrics
and targets
Substances of concern and substances of
very high concern
30 ; 31 ; 32 (a) ;
32 (b) ; 33 (a) ;
33 (b) ; 33 (c)
**
ESRS E4
Biodiversity
and ecosystems
E4-1 Strategy
(SBM)
Potential financial effects from pollution-
related impacts, risks and opportunities
11 ; 12 ; 13 (a) ; 13 (b) ;
13 (c) ; 13 (d) ; 13 (e) ;
13 (f) ; 14 ; 15
90
ESRS E4
Biodiversity
and ecosystems
SBM-3 Strategy
(SBM)
Description of the processes to identify
and assess material water and marine
resources-related impacts, risks and
opportunities
16 (a) i. ; 16 (a) ii. ;
16 (a) iii. ; 16 (b) ;
16 (c)
90
ESRS E4
Biodiversity
and ecosystems
IRO-1 Impact, risk
and
opportunity
management
Description des procédures d’identification
et d’évaluation des impacts, risques,
dépendances et opportunités importants
liés à la biodiversité et aux écosystèmes
17 (a) ; 17 (b) ; 17 (c) ;
17 (d) ; 17 (e) i. ;
17 (e) ii. ; 17 (e) iii. ;
18 (a) ; 18 (b) ; 18 (c) ;
19 (a) ; 19 (b)
90
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
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Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS E4
Biodiversity
and ecosystems
E4-2 Impact, risk
and
opportunity
management
Policies related to biodiversity and
ecosystems
20 ; 21 ; 22 ;
23 (a) ; 23 (b) ;
23 (c) ; 23 (d) ;
23 (e) ; 23 (f) ;
24 (a) ; 24 (b) ;
24 (c) ; 24 (d)
90
ESRS E4
Biodiversity
and ecosystems
E4-3 Impact, risk
and
opportunity
management
Actions and resources related to
biodiversity and ecosystems
25 ; 26 ; 27 ;
28 (a) ; 28 (b) i. ;
28 (b) ii. ; 28 (b) iii. ;
28 (c)
90
ESRS E4
Biodiversity
and ecosystems
E4-4 Metrics
and targets
Targets related to biodiversity and
ecosystems
29 ; 30 ; 31 ; 32 (a)
i. ; 32 (a) ii. ; 32 (a)
iii. ; 32 (b) ; 32 (c) ;
32 (d) ; 32 (e) ;
32 (f)
92
ESRS E4
Biodiversity
and ecosystems
E4-5 Metrics
and targets
Impact metrics related to biodiversity and
ecosystems
33 ; 34 ; 35 ; 36 ;
37 ; 38 (a) ; 38 (b) ;
38 (c) ; 38 (d) ;
38 (e) ; 39 ; 40 (a) ;
40 (b) ; 40 (c) ;
40 (d) i. ; 40 (d)
ii. ; 41 (a) ; 41 (b) i. ;
41 (b) ii. ; 41 (b) iii.
92
ESRS E4
Biodiversity
and ecosystems
E4-6 Metrics
and targets
Potential financial effects from biodiversity
and ecosystem-related impacts, risks and
opportunities
42 ; 43 ; 44 (a) ;
44 (b) ; 45 (a) ;
45 (b) ; 45 (c)
92
ESRS E5
Resource use
and circular
economy
IRO-1 Impact, risk
and
opportunity
management
Description of the processes to identify
and assess material resource use and
circular economy-related impacts, risks and
opportunities
11 (a) ; 11 (b)
**
ESRS E5
Resource use
and circular
economy
E5-1 Impact, risk
and
opportunity
management
Policies related to resource use and circular
economy
12 ; 13 ; 14 ; 15 (a) ;
15 (b) ; 16
**
ESRS E5
Resource use
and circular
economy
E5-2 Impact, risk
and
opportunity
management
Actions and resources related to resource
use and circular economy
17 ; 18 ; 19 ; 20 (a) ;
20 (b) ; 20 (c) ;
20 (d) ; 20 (e) ;
20 (f)
**
ESRS E5
Resource use
and circular
economy
E5-3 Metrics
and targets
Targets related to resource use and circular
economy
21 ; 22 ; 23 ; 24 (a) ;
24 (b) ; 24 (c) ;
24 (d) ; 24 (e) ;
24 (f) ; 25 ; 26 (a) ;
26 (b) ; 26 (c) ; 27
**
ESRS E5
Resource use
and circular
economy
E5-4 Metrics
and targets
Resource inflows
28 ; 29 ; 30 ; 31 (a) ;
31 (b) ; 31 (c) ; 32
**
ESRS E5
Resource use
and circular
economy
E5-5 - Resource outflows
- Resource outflows - Products and
materials
- Resource outflows - waste
33 ; 34 (a) ; 34 (b) ;
35 ; 36 (a) ; 36 (b) ;
36 (c) ; 37 (a) ;
37 (b) i ; 37 (b) ii ;
37 (b) iii ; 37 (c)
i ; 37 (c) ii ; 37 (c)
iii ; 37 (d) ; 38 (a) ;
38 (b) ; 39 ; 40
**
ESRS E5
Resource use
and circular
economy
E5-6 Metrics
and targets
Potential financial effects from resource use
and circular economy-related impacts, risks
and opportunities
41 ; 42 (a) ; 42 (b) ;
43 (a) ; 43 (b) ;
43 (c)
**
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
#
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127
Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS S1
Own
workforce
SBM-2 Strategy
(SBM)
Interests and views of stakeholders
12
95
ESRS S1
Own
workforce
SBM-3 Strategy
(SBM)
Material impacts, risks and opportunities and
their interaction with strategy and business
model
13 (a) ; 13 (b) ; 14 (a) ;
14 (b) ; 14 (c) ; 14 (d) ;
14 (e) ; 14 (f) i. ; 14 (f)
ii. ; 14 (g) i. ; 14 (g)
ii. ; 15 ; 16
96; 101; 104;
106;
111
ESRS S1
Own
workforce
S1-1 Impact, risk
and
opportunity
management
Policies related to own workforce
17 ; 18 ; 19 ; 20 (a) ;
20 (b) ; 20 (c) ; 21 ;
22 ; 23 ; 24 (a) ;
24 (b) ; 24 (c) ;
24 (d)
96; 101; 104; 111
ESRS S1
Own
workforce
S1-2 Impact, risk
and
opportunity
management
Processes for engaging with own workers
and workers’ representatives about impacts
25 ; 26 ; 27 (a) ;
27 (b) ; 27 (c) ;
27 (d) ; 27 (e) ;
28 ; 29
96; 102; 107
ESRS S1
Own
workforce
S1-3 Impact, risk
and
opportunity
management
Processes to remediate negative impacts
and channels for own workers to raise
concerns
30 ; 31 ; 32 (a) ;
32 (b) ; 32 (c) ;
32 (d) ; 32 (e) ;
33 ; 34
98; 117
ESRS S1
Own
workforce
S1-4 Impact, risk
and
opportunity
management
Taking action on material impacts on own
workforce, and approaches to mitigating
material risks and pursuing material
opportunities related to own workforce, and
effectiveness of those actions
35 ; 36 (a) ; 36 (b) ;
37 ; 38 (a) ; 38 (b) ;
38 (c) ; 38 (d) ; 39 ;
40 (a) ; 40 (b) ; 41 ;
42 ; 43
96; 102; 104;
111
ESRS S1
Own
workforce
S1-5 Metrics
and targets
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
44 (a) ; 44 (b) ;
44 (c) ; 45 ; 46 ;
47 (a) ; 47 (b) ;
47 (c)
100; 103; 105;
113
ESRS S1
Own
workforce
S1-6 Metrics
and targets
Characteristics of the undertaking’s
employees
48 ; 49 ; 50 (a) ;
50 (b) i. ; 50 (b) ii. ;
50 (b) iii. ; 50 (c) ;
50 (d) i. ; 50 (d) ii. ;
50 (e) ; 50 (f) ; 51 ;
52 (a) ; 52 (b)
95
ESRS S1
Own
workforce
S1-7 Metrics
and targets
Characteristics of non-employee workers in
the undertaking’s own workforce
53 ; 54 ; 55 (a) ;
55 (b) i. ; 55 (b) ii. ;
55 (c) ; 56 ; 57
*
ESRS S1
Own
workforce
S1-8 Metrics
and targets
Collective bargaining coverage and social
dialogue
58 ; 59 ; 60 (a) ;
60 (b) ; 60 (c) ; 61 ;
62 ; 63 (a) ; 63 (b)
**
ESRS S1
Own
workforce
S1-9 Metrics
and targets
Diversity metrics
64 ; 65 ; 66 (a) ;
66 (b)
95; 105
ESRS S1
Own
workforce
S1-10 Metrics
and targets
Adequate wages
67 ; 68 ; 69 ;
70 ; 71
**
ESRS S1
Own
workforce
S1-11 Metrics
and targets
Social protection
72 ; 73 ; 74 (a) ;
74 (b) ; 74 (c) ;
74 (d) ; 74 (e) ;
75 ; 76
**
ESRS S1
Own
workforce
S1-12 Metrics
and targets
Persons with disabilities
77 ; 78 ; 79 ; 80
**
ESRS S1
Own
workforce
S1-13 Metrics
and targets
Training and skills development metrics
81 ; 82 ; 83 (a) ;
83 (b) ; 84 ; 85
*
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
128
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Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS S1
Own
workforce
S1-14 Metrics
and targets
Health and safety metrics
86 ; 87 ; 88 (a) ;
88 (b) ; 88 (c) ;
88 (d) ; 88 (e) ;
89 ; 90
103
ESRS S1
Own
workforce
S1-15 Metrics
and targets
Work-life balance metrics
91 ; 92 ; 93 (a) ;
93 (b) ; 94
**
ESRS S1
Own
workforce
S1-16 Metrics
and targets
Compensation metrics (pay gap and total
compensation)
95 ; 96 ; 97 (a) ;
97 (b) ; 97 (c) ;
98 ; 99
95; 105
ESRS S1
Own
workforce
S1-17 Metrics
and targets
Incidents, complaints and severe human
rights impacts
100 ; 101 ; 102 ;
103 (a) ; 103 (b) ;
103 (c) ; 103 (d) ;
104 (a) ; 104 (b)
**
ESRS S2
Workers in the
value chain
SBM-2 Strategy
(SBM)
Interests and views of stakeholders
9
**
ESRS S2
Workers in the
value chain
SBM-3 Strategy
(SBM)
Material impacts, risks and opportunities and
their interaction with strategy and business
model
10 (a) i. ; 10 (a) ii. ;
10 (b) ; 11 (a) i. ; 11 (a)
ii. ; 11 (a) iii. ; 11 (a)
iv. ; 11 (a) v. ; 11 (b) ;
11 (c) ; 11 (d) ; 11 (e) ;
12 ; 13
**
ESRS S2
Workers in the
value chain
S2-1 Impact, risk
and
opportunity
management
Policies related to value chain workers
14 ; 15 ; 16 ; 17 (a) ;
17 (b) ; 17 (c) ; 18 ; 19
**
ESRS S2
Workers in the
value chain
S2-2 Impact, risk
and
opportunity
management
Processes for engaging with value chain
workers about impacts
20 ; 21 ; 22 (a) ;
22 (b) ; 22 (c) ;
22 (d) ; 22 (e) ;
23 ; 24
**
ESRS S2
Workers in the
value chain
S2-3 Impact, risk
and
opportunity
management
Processes to remediate negative impacts
and channels for value chain workers to
raise concerns
25 ; 26 ; 27 (a) ;
27 (b) ; 27 (c) ;
27 (d) ; 28 ; 29
**
ESRS S2
Workers in the
value chain
S2-4 Impact, risk
and
opportunity
management
Taking action on material impacts on value
chain workers, and approaches to managing
material risks and pursuing material
opportunities related to value chain workers,
and effectiveness of those actions
30 ; 31 (a) ; 31 (b) ;
32 (a) ; 32 (b) ;
32 (c) ; 32 (d) ;
33 (a) ; 33 (b) ;
33 (c) ; 34 (a) ;
34 (b) ; 35 ; 36 ;
37 ; 38
**
ESRS S2
Workers in the
value chain
S2-5 Metrics
and targets
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
39 (a) ; 39 (b) ;
39 (c) ; 40 ; 41 ;
42 (a) ; 42 (b) ;
42 (c)
**
ESRS S3
Affected
communities
SBM-2 Strategy
(SBM)
Interests and views of stakeholders
7
**
ESRS S3
Affected
communities
SBM-3 Strategy
(SBM)
Material impacts, risks and opportunities and
their interaction with strategy and business
model
8 (a) ; 8 (b) ; 9 (a) i. ;
9 (a) ii. ; 9 (a) iii. ;
9 (a) iv. ; 9 (b) i ;
9 (b) ii ; 9 (c) ; 9 (d) ;
10 ; 11
**
ESRS S3
Affected
communities
S3-1 Impact, risk
and
opportunity
management
Policies related to affected communities
12 ; 13 ; 14 ; 15 ;
16 (a) ; 16 (b) ; 16 (c) ;
17 ; 18
**
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
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Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS S3
Affected
communities
S3-2 Impact, risk
and
opportunity
management
Processes for engaging with affected
communities about impacts
19 ; 20 ; 21 (a) ;
21 (b) ; 21 (c) ; 21 (d) ;
22 ; 23 ; 24
**
ESRS S3
Affected
communities
S3-3 Impact, risk
and
opportunity
management
Processes to remediate negative impacts
and channels for affected communities to
raise concerns
25 ; 26 ; 27 (a) ;
27 (b) ; 27 (c) ;
27 (d) ; 28 ; 29
**
ESRS S3
Affected
communities
S3-4 Impact, risk
and
opportunity
management
Taking action on material impacts on
affected communities, and approaches
to mitigating material risks and pursuing
material opportunities related to affected
communities, and effectiveness of those
actions
30 ; 31 (a) ; 31 (b) ;
32 (a) ; 32 (b) ;
32 (c) ; 32 (d) ;
33 (a) ; 33 (b) ;
33 (c) ; 34 (a) ;
34 (b) ; 35 ; 36 ;
37 ; 38
**
ESRS S3
Affected
communities
S3-5 Metrics
and targets
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
39 (a) ; 39 (b) ;
39 (c) ; 40 ; 41 ;
42 (a) ; 42 (b) ;
42 (c)
**
ESRS S4
Consumers
and end users
SBM-2 Strategy
(SBM)
Interests and views of stakeholders
8
**
ESRS S4
Consumers
and end users
SBM-3 Strategy
(SBM)
Material impacts, risks and opportunities and
their interaction with strategy and business
model
9 (a) ; 9 (b) ; 10 (a)
i. ; 10 (a) ii. ; 10 (a)
iii. ; 10 (a) iv. ; 10 (b) ;
10 (c) ; 10 (d) ; 11 ; 12
**
ESRS S4
Consumers
and end users
S4-1 Impact, risk
and
opportunity
management
Policies related to consumers and end users
13 ; 14 ; 15 ; 16 (a) ;
16 (b) ; 16 (c) ; 17
**
ESRS S4
Consumers
and end users
S4-2 Impact, risk
and
opportunity
management
Processes for engaging with consumers and
end users about impacts
18 ; 19 ; 20 (a) ;
20 (b) ; 20 (c) ;
20 (d) ; 21 ; 22
**
ESRS S4
Consumers
and end users
S4-3 Impact, risk
and
opportunity
management
Processes to remediate negative impacts
and channels for consumers and end users
to raise concerns
23 ; 24 ; 25 (a) ;
25 (b) ; 25 (c) ;
25 (d) ; 26 ; 27
**
ESRS S4
Consumers
and end users
S4-4 Impact, risk
and
opportunity
management
Taking action on material impacts on
consumers and end users and approaches
to mitigating material risks and pursuing
material opportunities related to consumers
and end users, and effectiveness of those
actions
28 ; 29 (a) ; 29 (b) ;
30 ; 31 (a) ; 31 (b) ;
31 (c) ; 31 (d) ;
32 (a) ; 32 (b) ;
32 (c) ; 33 (a) ;
33 (b) ; 34 ; 35 ;
36 ; 37
**
ESRS S4
Consumers
and end users
S4-5 Metrics
and targets
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
38 (a) ; 38 (b) ;
38 (c) ; 39 ; 40 ;
41 (a) ; 41 (b) ; 41 (c)
**
ESRS G1
Business
conduct
GOV-1 Governance
(GOV)
The role of the administrative, management
and supervisory bodies
5 (a) ; 5 (b)
117
ESRS G1
Business
conduct
IRO-1 Impact, risk
and
opportunity
management
Description of the processes to identify
and assess material impacts, risks and
opportunities
6
117
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Our ESG performance
Standard
Cross-cutting/
thematic
No. Scope of
reporting
Designation of the DRs
DR number
Page
number
ESRS G1
Business
conduct
G1-1 Impact, risk
and
opportunity
management
Corporate culture and business conduct
policies
7 ; 8 ; 9 ; 10 (a) ;
10 (b) ; 10 (c) i. ;
10 (c) ii. ; 10 (d) ;
10 (e) ; 10 (f) ; 10 (g) ;
10 (h) ; 11
117
ESRS G1
Business
conduct
G1-2 Impact, risk
and
opportunity
management
Management of relationships with suppliers
12 ; 13 ; 14 ; 15 (a) ;
15 (b)
**
ESRS G1
Business
conduct
G1-3 Impact, risk
and
opportunity
management
Prevention and detection of corruption or
bribery
16 ; 17 ; 18 (a) ;
18 (b) ; 18 (c) ; 19 ;
20 ; 21 (a) ; 21 (b) ;
21 (c)
118
ESRS G1
Business
conduct
G1-4 Metrics
and targets
Confirmed incidents of corruption or bribery
22 ; 23 ; 24 (a) ;
24 (b) ; 25 (a) ;
25 (b) ; 25 (c) ;
25 (d) ; 26
118
ESRS G1
Business
conduct
G1-5 Metrics
and targets
Political influence and lobbying activities
27 ; 28 ; 29 (a) ;
29 (b) i. ; 29 (b) ii. ;
29 (c) ; 29 (d) ; 30
**
ESRS G1
Business
conduct
G1-6 Metrics
and targets
Payment practices
31 ; 32 ; 33 (a) ;
33 (b) ; 33 (c) ;
33 (d)
**
* These items are currently being developed and prepared by Fluxys.
** These topics are not material to Fluxys
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
133
#
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Corporate
Governance
Declaration
134
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
Fluxys Belgium has adopted the 2020 Belgian Code on
Corporate Governance (the 2020 Code) as its bench-
mark code of conduct, the main principles of which are
included in the Articles of Association and the Corpo-
rate Governance Charter. Fluxys Belgium is also subject
to legislation on corporate governance contained in the
Act of 12 April 1965 on the transmission of gaseous and
other products via pipeline, as subsequently amended
(the Gas Act), and European Directive 2009/73/EC con-
cerning common rules for the internal market in natural
gas and repealing Directive 2003/55/EC (the Directive).
Details of the legislation applied by Fluxys Belgium can
be found online:
• The 2020 Code:
https://www.corporategovernancecommittee.be/en
• The Gas Act: www.just.fgov.be (in French and Dutch)
• The Directive: www.eur-lex.europa.eu
In accordance with the principle of transparency, Fluxys
Belgium lists in this chapter of its annual report the parts
of the 2020 Code from which the company deviates
and the justified reasons for doing so:
• The company does not apply the 2020 Code rules
on the term of directorships. Members of the Board
of Directors are appointed for a period of six years
rather than the four years advocated by Principle 5.6
of the 2020 Code. This term is justified in light of the
technical, financial and legal particularity and com-
plexity of the tasks and responsibilities entrusted to
the natural gas system operator. A six-year mandate
allows directors to deepen their expertise and to
bring real added value to the debate over a longer
period of time. This is also in line with the long-
term nature of infrastructure operators' activities.
• The company also deviates from recommendation
7(6) and (9) of the 2020 Code for the reasons set
out in the remuneration report referred to here.
Changes in the composition of the
Board of Directors in 2023
At the Annual General Meeting held on 9 May 2023,
Roberte Kesteman's independent directorship was
renewed for a period of six years until the end of the
2029 Annual General Meeting.
In addition, the same Annual General Meeting defini-
tively appointed Wim Vermeir, who was co-opted by the
Board of Directors with effect from 21 February 2023 to
replace Patrick Côté, who resigned on the same date,
as director for a directorship that will expire at the end
of the 2028 Annual General meeting.
Finally, the Annual General Meeting appointed Jean-
Claude Marcourt as director to continue the director-
ship of Claude Grégoire, who resigned on 9 May 2023.
This directorship will expire at the end of the 2024
Annual General Meeting.
The procedure for new appointments by the Appoint-
ment and Remuneration Committee and the Corporate
Governance Committee was complied with.
Rules governing the appointment
and replacement of members
of the Board of Directors and
amendments to the Articles of
Association
Appointment and replacement of
directors
Directors are appointed by the General Meeting for no
more than six years and can be dismissed by this body.
Article 10 of the Articles of Association stipulates that
the company shall be managed by a Board of Direc-
tors comprising non-executive directors (except for
the director charged with the day-to-day management
of the company), who are appointed for a maximum
term of six years and may be dismissed by the Gen-
eral Meeting. The directorships of outgoing directors
who have not been re-elected shall expire immediately
after the Annual General Meeting. In the event that one
or more directorships fall vacant, the remaining direc-
tors may, by a simple majority of votes, temporarily fill
the vacancy. In such cases, the General Meeting shall
make the permanent appointment or appointments at
its first meeting thereafter. If a directorship becomes
vacant before the end of the term, the replacement
director appointed shall serve out the rest of the term
in question.
Amendments to the Articles of
Association
The company's Articles of Association may be amended
by the Annual General Meeting; any amendments made
must be published in the Belgian Official Gazette. Delib-
eration and decisions regarding amendments to the
Articles of Association are only valid if at least half of
the group's share capital is represented at the General
Meeting. No amendment shall be permitted unless it is
passed by three quarters of the votes.
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135
Board of Directors
Composition of the Board of Directors
Article 10 of the company's Articles of Association stip-
ulates that the Board of Directors shall comprise no
fewer than three and no more than 24 non-executive
directors, excluding one or more federal government
representatives.
Principle 3.2 of the 2020 Code recommends that
the Board should be small enough for efficient deci-
sion-making. It should also be large enough for its
Board members to contribute experience and knowl-
edge from their different fields and for changes to the
Board's composition to be managed without undue
disruption. The size of the Fluxys Belgium Board of
Directors is justified in light of the technical, financial
and legal particularity and complexity of the tasks and
responsibilities entrusted to the natural gas system
operator and the diversity of interests involved.
In order to comply with the provisions of the Gas Act,
at least one third of directors must be independent
within the meaning of the Gas Act. They are chosen
partly on the basis of their financial management skills
and partly for their useful technical knowledge and
in particular their relevant knowledge of the energy
sector. Independent directors within the meaning of
the Gas Act must meet, among other things, the inde-
pendence criteria of the 2020 Belgian Code on Corpo-
rate Governance. One third of directors must be of a
different gender from the other two thirds.
At least half of the directors must be fluent in French
and half in Dutch.
In addition, the golden share grants the federal Energy
Minister the right to appoint two representatives of the
federal government to the Board of Directors.
Directors of the company may not simultaneously be
members of the supervisory board, board of directors
or bodies legally representing the undertaking, of an
undertaking active in the production or supply of nat-
ural gas and may not exercise any rights over such an
undertaking.
Directors
Andries Gryffroy Director, Chairman of the Board of
Directors (since 9 May 2023)
Andries Gryffroy is a qualified industrial electromechan-
ical engineer and holds a Master's degree in marketing.
He took a number of additional training courses in the
energy sector and worked in a range of positions in that
sector. He is a consultant in technology and energy.
He is also the Chairman of Publigas, a member of the
Flemish Parliament and a federated entity senator. He
was appointed as director in May 2015 following his
nomination by Publigas, and his current term of office
will expire at the Annual General Meeting in May 2027.
Daniël Termont Director, Chairman of the Audit and
Risk Committee (since 9 May 2023), Chairman of the
Board of Directors (until 9 May 2023)
Daniël Termont is a member of the Board of Directors
of Publigas. He was appointed as director in May 1998
following his nomination by Publigas, and his current
term of office will expire at the Annual General Meeting
in May 2027.
Jean-Claude Marcourt Director, Vice-Chairman of the
Board of Directors (since 9 May 2023)
Jean-Claude Marcourt holds a degree in law from
the University of Liège and has been a lawyer at the
Liège Bar since 1979, specialising in economic law and
social law. He served as Chief of Staff for various minis-
ters from 1992 to 2004 and also held various ministerial
posts from 2004 to 2019. He is currently serving as a
member of the Walloon Parliament and the Parliament
of the Wallonia-Brussels Federation. He was appointed
director in May 2023 following nomination by Publigas
and his current term of office expires at the Annual
General Meeting in May 2024.
Claude Grégoire Director, Vice-Chairman of the Board
of Directors (until 9 May 2023)
Claude Grégoire is a qualified civil engineer. He was
appointed as director in October 1994 following his
nomination by Publigas and tendered his resignation
with effect from 9 May 2023.
Pascal De Buck Managing Director and CEO
Pascal De Buck studied law, specialising in eco-
nomic law, before completing several management
training courses, including at the Flemish School of
Higher Education in Economics (VLEKHO) and EHSAL
Management School (EMS) in Brussels and the IESE
Business School's international Global CEO Program.
After joining Fluxys as a Legal Counsel in 1995, he
became head of the Legal and Commercial depart-
ments before taking on the role of Commercial Director,
136
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
where he was responsible for business development
and strategy. Pascal was appointed CEO and Chairman
of the Executive Board of Fluxys Belgium on 1 January
2015. He became Managing Director of Fluxys Belgium
in May 2020 and will hold this position until the Annual
General Meeting in May 2026.
Abdellah Achaoui Director
Abdellah Achaoui speaks several languages and has
a degree in finance. He is management manager at
VIVAQUA. He is currently on political leave and serving
as an alderman in the Brussels municipality of Molen-
beek. He is Chairman of the Board of Directors of Inter-
fin and a member of the Boards of Directors of Sibelga
and Publigas. He has held financial positions in various
sectors, both private and public. He was co-opted as
director by the Board of Directors with effect from 30
March 2022 following his nomination by Publigas and
his current term will expire at the end of the Annual
General Meeting in May 2027.
Laurent Coppens Director
Laurent Coppens holds a Master of Business Adminis-
tration from the University of Liège and completed spe-
cialised courses in Management Accounting & Control
at Maastricht University before working as an assistant
and researcher in finance. He is currently CFO of Sibe-
lga and Interfin and Financial Officer at Publigas and
Publi-T. He was appointed as director by the Annual
General Meeting with effect from 1 July 2021, following
his nomination by Publigas, and his current directorship
will expired at the Annual General Meeting in May 2027.
Patrick Côté Director (until 21 February 2023)
Patrick Côté is Managing Director at Caisse de dépôt
et placement du Québec (CDPQ). He has 15 years'
experience in the infrastructure sector, having joined
CDPQ in 2006. Before that, he held various corpo-
rate finance positions in large companies, including
Ivanhoé Cambridge, CDPQ's real estate subsidiary.
Patrick graduated from HEC Montréal with a business
degree, specialising in finance, and a qualification as
a Chartered Professional Accountant (CPA). Following
his nomination by CDPQ, he was co-opted as director
by the Board of Directors with effect from 1 January
2017. He tendered his resignation with effect from 21
February 2023.
Leen Dierick Director
Leen Dierick studied business administration, market-
ing and logistics at EHSAL in Brussels and has subse-
quently held various positions at DOMO NV. She has
been the mayor of the city of Dendermonde since 2024,
where she previously served as a municipal councillor
from 2001 to 2023. She has been a Member of the Fed-
eral Parliament for CD&V since 2007 and her term will
end in 2024. In the Chamber she is a permanent mem-
ber of both the Parliamentary Committees for Economy
& Energy and the subcommittee for Nuclear Safety. She
was appointed director in May 2022 on a proposal by
Publigas. Her directorship will expire at the end of the
Annual General Meeting in May 2028.
Gianni Infanti Director
Gianni Infanti earned a Master's degree in management
sciences at UCL Mons. He is currently an adviser to the
office of Minister Christie Morreale. He was appointed
director in May 2022 following his nomination by Pub-
ligas and his current term of office will expire at the end
of the Annual General Meeting in May 2028.
Ludo Kelchtermans Director, Chairman of the Audit and
Risk Committee (until 9 May 2023)
Ludo Kelchtermans holds a degree in economics and
is CEO of Nuhma, Het Limburgs klimaatbedrijf. He is a
director at several companies and chairman of Aspira-
vi's audit committee. He was appointed director in June
2012 pursuant to a nomination by Publigas. His current
directorship will expire at the Annual General Meeting
in May 2026.
Josly Piette Director
Josly Piette holds degrees in industrial sociology and
economic and social sciences. He is Honorary General
Secretary of the Confédération des Syndicats Chrétiens
(Confederation of Christian Trade Unions) and a director
at SOCOFE and Publigas. He was appointed director
in May 2009 following nomination by Publigas and his
current term of office expires at the Ordinary General
Meeting in May 2026.
Koen Van den Heuvel Director, Chairman of the
Appointment and Remuneration Committee
Koen Van den Heuvel holds a degree in economics
and political science. As a member of Puurs Municipal
Council since 1989, for five years he served as the
Alderman for Youth, Culture and Finance. In 1997, he
became Mayor of Puurs, and since 2019 he has been
the mayor of the merged municipality of Puurs-Sint-
Amands. Since 2004, he has been a member of the
Flemish Parliament, leading his parliamentary group
there from 2012 to 2019. In 2019, he was the Flemish
Minister for the Environment, Nature and Agriculture.
Following his nomination by Publigas, he was co-opted
as a director by the Board of Directors with effect from 1
December 2019, and his current directorship will expire
at the Annual General Meeting in May 2025.
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137
Wim Vermeir Director (since 21 February 2023)
Wim Vermeir has a degree in engineering physics from
Ghent University and holds an MBA from Vlerick School
of Management. He started his career at Ghent Univer-
sity and Vlerick School of Management as a research
assistant in corporate finance. Between 1995 and 2006,
he held various positions at Dexia Asset Management
and in 2006 he was appointed Chief Investment Officer
for Traditional Investments and member of the Execu-
tive Board of Dexia Asset Management. He has been
Chief Investment Officer of AG Insurance since April
2011 and also Group Head of Investments for Ageas
since June 2012. Following his nomination by AG Insur-
ance, he was co-opted as a director by the Board of
Directors with effect from 21 February 2023, and his
current directorship will expire at the Annual General
Meeting in May 2028.
Geert Versnick Director
Geert Versnick has a law degree from Ghent University.
He has also participated in study programmes from
GUBERNA, the International Institute for Management
Development (IMD) and INSEAD. He was a lawyer at the
Ghent Bar from 1980 until 2000 and active in politics
from 1989 to 2017. He holds a number of directorships
in both the private and public sectors. Following his
nomination by Publigas, he was appointed as Director
in May 2018 with effect from 3 October 2018, and his
current directorship will expire at the Annual General
Meeting in May 2024.
Independent directors under the
provisions of the Gas Act
Sabine Colson oSabine Colson, independent director,
Chairman of the Corporate Governance Committee
Sabine Colson has a degree in business and finance
from HEC Liège. She completed a GUBERNA Certified
Director course and holds a university certificate in
innovation management from UCLouvain. She currently
coordinates the WE Mergers & Acquisitions BU at Wal-
lonie Entreprendre. She was co-opted as independent
director with effect from 1 October 2018 following his
nomination by the Board of Directors and the recom-
mendation of the relevant advisory committees. Her
directorship will end at the Annual General Meeting
in May 2024.
Valentine Delwart Independent Director
Valentine Delwart holds a degree in law and a Mas-
ter's degree in European law. She is Alderwoman for
Finance in Uccle and has been General Secretary of the
French-speaking liberal party Mouvement Réformateur
since March 2011. She was appointed as Independent
Director in May 2013 following her nomination by the
Board of Directors and the recommendation of the
relevant advisory committees. Her current directorship
will end at the Annual General Meeting in May 2025.
Cécile Flandre Independent Director
Cécile Flandre holds a degree in mathematics and
actuarial science from the Université Libre de Bruxelles
(ULB). For nine years she served as CFO and executive
director at two insurance companies, Belfius Insurance
and later Ethias. She has many years of experience in
the insurance sector, including its supervision, and in
financial matters. Until January 2023 she was a director
Elia Transmission Belgium, Elia Asset and Elia Group,
and is currently an independent director of MS Amlin
Insurance SE, where she chairs the Audit Committee,
and independent chair of the Board of Directors of Syn-
atom. She has been a member or chair of the boards of
directors and audit committees of several companies.
She was co-opted as independent director with effect
from 30 March 2022 following his nomination by the
Board of Directors and the recommendation of the
relevant advisory committees. Her directorship will end
at the Annual General Meeting in May 2025.
Sandra Gobert Independent Director
Sandra Gobert obtained a Master's degree in law from
the Vrije Universiteit Brussel (VUB). She has been a law-
yer at the Brussels Bar since 1992 and is a partner at
Sub Rosa Legal. After a specialisation and internship
in tax law, she built up her expertise in corporate law
and corporate governance. She has been a GUBERNA
Certified Director since 2010 and has held director-
ships in various sectors (distribution and retail, legal,
real estate and energy). She completed the Chapter
Zero: Directors' Climate Journey in 2021. In early 2019,
she was appointed Executive Director of GUBERNA
(Institute of Directors), where she has been a member
of the Board of Directors since 2016. She is a member
of the Belgian Corporate Governance Committee, a
member of the Board of Directors of ecoDa (European
Confederation of Directors' Associations) and chair of
the ecoDa Working Group on Sustainability and of the
Remuneration and Nomination Committee. She is a
member of the ESG Exchange Advisory Committee.
She was appointed as independent director in May
2019 following her nomination by the Board of Direc-
tors and the recommendation of the relevant advisory
committees. Her directorship will expire at the Annual
General Meeting in May 2025.
Roberte Kesteman Independent Director
Roberte Kesteman holds a master's degree in applied
economics from VLEKHO. She also studied international
138
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
corporate finance at INSEAD in France. She is currently
Senior Advisor at First Sentier Investors International,
an independent director at Elia Transmission Belgium,
Elia Asset and Elia Group, as well as a member of the
Audit Committee, Remuneration Committee and Cor-
porate Governance Committee. Since 4 May 2022,
she has been an independent director, a member of the
Audit Committee and a member of the Remuneration,
Nomination and Corporate Governance Committee at
Aperam SA. On 18 December 2023, she was appointed
independent director at KBVB/RBFA (Royal Belgian
Football Association). She was appointed as independ-
ent director with effect from 1 July 2019 following her
nomination by the Board of Directors and the recom-
mendation of the relevant advisory committees. Her
directorship will expire at the Annual General Meeting
in May 2029.
Anne Leclercq Independent Director
Anne Leclercq holds a master's degree in law and an
MBA from Vlerick Business School. Many years working
in both the banking sector and as Director of Treasury
and Capital Markets at the Belgian Debt Agency (the
agency in charge of the operational management of
the debt of the Belgian federal government) have pro-
vided her with a wealth of financial expertise and man-
agement experience. Until mid-2019, Anne chaired a
sub-committee of the European Union's Economic and
Financial Committee comprising debt managers from
the various EU Member States. She is currently a direc-
tor at BNP Paribas Fortis, where she also chairs the Risk
Committee, WDP (Warehouses De Pauw) and Sint-Maria
Halle General Hospital. Until the end of December
2022, she was a director and chair of the Audit Com-
mittee of KULeuven/UZ Leuven. She was appointed as
independent director in May 2018 following her nomina-
tion by the Board of Directors and the recommendation
of the relevant advisory committees. Her directorship
will expire at the Annual General Meeting in May 2024.
Sandra Wauters Independent Director
Sandra Wauters holds a PhD in chemical engineer-
ing from Ghent University. She is currently Carbon
Management Programme Manager at BASF Antwerp,
where she is responsible for business development
and coordination on climate-neutral growth. She was
appointed as independent director in May 2013 follow-
ing her nomination by the Board of Directors and the
recommendation of the relevant advisory committees.
Her directorship will expire at the Annual General Meet-
ing in May 2025.
Federal government
representatives
Maxime Saliez and Tom Vanden Borre
Messrs Maxime Saliez and Tom Vanden Borre were
appointed as per the Royal Decree of 31 January 2021
as representatives of the federal government in an
advisory capacity for the French- and Dutch-speaking
roles respectively. This Royal Decree entered into
force on the date of its publication in the Belgian Offi-
cial Gazette, namely 8 February 2021
1
.
Maxime Saliez has a degree in civil and electrome-
chanical engineering and is an adviser to the Federal
Minister of Energy. Tom Vanden Borre holds a PhD
in law and serves as Head of the Private Office of the
Federal Minister of Energy.
Federal government representatives have special
powers as stipulated in the Acts of 26 June 2002 and
29 April 1999 and the Royal Decrees of 16 June 1994
and 5 December 2000, as set out in Article 12 of the
Articles of Association and in the Corporate Govern-
ance Charter.
They attend meetings of the Board of Directors in an
advisory capacity.
Secretariat
Nicolas Daubies, Dpt. Director Group General Counsel
& Company Secretary, acts as secretary to the Board of
Directors. Director Group General Counsel & Company
Secretary, acts as secretary to the Management Team BE.
Activity report
Issues examined
The members of the Board of Directors seek to adopt
decisions by consensus. The Board mainly addressed
the following issues:
• The strategy of Fluxys Belgium;
• Follow-up of the 2023 budget;
• The 10-year investment programme (2024-2033);
• The medium-term financial plan;
• The HSEQ policy;
• Risk management;
• The preparation of the company's annual
and half-yearly accounts and those of its sub-
sidiaries, as well as associated press releases;
• The drafting of the annual financial report
for financial year 2022 and the half-yearly
financial report as at 30 June 2023;
• The change in the valuation rule for 'Unrealised
foreign exchange results' in Belgian GAAP;
• The tariff methodology 2024-2027;
1. Royal Decree of 31January 2021 on the dismissal and appointment of federal government commissioners to the boards of directors of the designated
operators, as provided for in Article 8/3, §1/3 of the Act of 12April 1965 concerning the transmission of gaseous and other products by pipeline (published
in the Belgian Official Gazette on 8February 2021).
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• Projects and research into projects related
to the continuing development of the group's
activities in Belgium, including:
– market integration projects;
– projects related to the energy transition,
especially those involving biomethane and
the transmission of hydrogen and CO
2
(also
discussed in a separate expert session),
including the draft Flemish CO
2
decree;
– the establishment of Fluxys c-grid and
Fluxys hydrogen, and the submission of
Fluxys hydrogen’s application to become
the hydrogen network operator;
– L-gas to H-gas conversion;
– upgrading of the Zeebrugge-Opwijk pipe-
line route and progress reporting;
– progress of the LNG capacity expan-
sion and truck-loading projects;
• Ongoing implementation of ESG and
directives, including the CSRD (also dis-
cussed in a separate expert session);
• Development of the legal and reg-
ulatory framework;
• Progress of disputes and legal actions brought
in order to safeguard the company's interests;
• The energy mix, the European Green Deal,
developing a long-term vision for a low-car-
bon energy system by 2050 and the Euro-
pean Commission's Fit for 55 programme;
• The consequences of the war in Ukraine;
• Security of supply;
• Replacement of the drive for the CVKs in Loenhout;
• Tern Island in Zeebrugge;
• The role of natural gas in Belgium's future
energy system and in the energy transition;
• Commercial activities and the operation of
the network and the LNG terminal (includ-
ing demand for additional regasification
capacity at the LNG terminal);
• The safety culture within the company;
• Convening the Annual General Meeting;
• Changes in the composition of the Board of
Directors and the advisory committees;
• Examination of reports by the Audit and Risk Com-
mittee, the Appointment and Remuneration Com-
mittee and the Corporate Governance Committee;
• Examination of the report of the Board
of Directors of Fluxys LNG;
• The review report of the Board of Direc-
tors and the advisory committees.
Operation
The Board of Directors may only deliberate and adopt
decisions when at least half of the directors are either
present or represented. Decisions made by the Board
of Directors are taken by a simple majority of votes cast
by directors present or represented. In 2023, the Board
of Directors took all of its decisions by unanimous vote
of the directors present or represented.
Frequency of meetings and attendance
levels
The Board of Directors met seven times in ordinary
meetings in 2023 and made one decision by unani-
mous written agreement of the directors, in accord-
ance with its rules of procedure. Director attendance
at Board of Directors' meetings in 2023 was as follows:
Attendance
Andries Gryffroy 7 out of 7 meetings
Jean-Claude Marcourt 4 out of 4 meetings
Pascal De Buck 7 out of 7 meetings
Abdellah Achaoui 7 out of 7 meetings
Sabine Colson 6 out of 7 meetings
Laurent Coppens 6 out of 7 meetings
Patrick Côté 1 out of 1 meeting
Valentine Delwart 6 out of 7 meetings
Leen Dierick 7 out of 7 meetings
Cécile Flandre 6 out of 7 meetings
Sandra Gobert 6 out of 7 meetings
Claude Grégoire 3 out of 3 meetings
Gianni Infanti 6 out of 7 meetings
Ludo Kelchtermans 6 out of 7 meetings
Roberte Kesteman 6 out of 7 meetings
Anne Leclercq 7 out of 7 meetings
Josly Piette 7 out of 7 meetings
Daniël Termont 7 out of 7 meetings
Koen Van den Heuvel 6 out of 7 meetings
Wim Vermeir 6 out of 6 meetings
Geert Versnick 4 out of 7 meetings
Sandra Wauters 7 out of 7 meetings
140
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
Anne Leclercq
• She holds a Master's degree in law and an
MBA from Vlerick Business School.
• Many years working in the financial sec-
tor have provided her with a wealth of financial
expertise and management experience.
• She has extensive market knowledge and
insight into the key drivers of change in
financial markets, such as changes in reg-
ulations and economic factors.
• Until 31 July 2019, she was Director of Treasury
and Capital Markets at the Belgian Debt Agency.
Sandra Wauters
• She has a PhD in chemical engineering.
• In her operations role at BASF Antwerp,
she has acquired experience in HAZOP stud-
ies and technical risk assessments.
Issues examined
The Audit and Risk Committee was set up within the
Board of Directors to assist this body. It has the powers
assigned to an audit and risk committee by law as well
as any other powers that may be assigned to it by the
Board of Directors. In 2023, the Audit and Risk Commit-
tee mainly addressed the following issues:
• The company's accounts as at 31 Decem-
ber 2022 and 30 June 2023 as well as the
associated press releases (financial part);
• The annual financial report for the 2022 financial
year and the half-yearly report as at 30 June 2023;
• The principles governing the closing of accounts;
• Examination of the auditor's work, sched-
ule and additional assignments;
• Examination of the internal control
and risk management system;
• Goals, schedule and activities of
the internal audit in 2023;
• The internal audit schedule for 2024;
• Follow-up on the recommendations made
in the wake of the internal audit in 2022;
• Risk management;
• Confirmation to the Audit and Risk Committee
of the independence of the internal audit;
• The evaluation of the person in
charge of the internal audit.
Operation
Decisions by the Audit and Risk Committee are adopted
by a simple majority of votes cast by those members
present or represented, in line with their assigned pow-
ers. The members of the Audit and Risk Committee
Committees formed by the Board
of Directors
Audit and Risk Committee
Composition of the Audit and Risk Committee
The Audit and Risk Committee comprises seven
non-executive directors, of whom at least one third
must be independent within the meaning of the Gas
Act and the 2020 Belgian Code on Corporate Gov-
ernance. The Audit and Risk Committee has collective
expertise in the company's area of activity and at least
one independent director has the required expertise in
accounting and auditing.
Chairman
Ludo Kelchtermans (until 9 May 2023)
Daniël Termont (since 9 May 2023)
Members
• Sabine Colson*
• Laurent Coppens
• Patrick Côté (until 21 February 2023)
• Cécile Flandre*
• Anne Leclercq*
• Wim Vermeir (since 21 February 2023)
• Sandra Wauters*
Invited in an advisory capacity
Pascal De Buck, Managing Director and CEO.
Secretariat
Nicolas Daubies, Dpt. Director Group General Counsel
& Company Secretary, acts as secretary to the Audit
and Risk Committee.
Accounting and auditing expertise of the
independent directors on the Audit and Risk
Committee
Cécile Flandre
• She holds a degree in mathemat-
ics and actuarial science.
• She has extensive experience since she sieges on
different boards of directors and audit committees.
• She has held the position of Chief Financial
Officer, executive board member and execu-
tive director, with particular responsibility for
investments, accounting, financial planning
and control, and corporate finance.
Sabine Colson
• She holds a degree in business and finance from
HEC Liège and has been an audit manager at PwC.
• She has experience of audit committees and
appointment and remuneration committees.
• She is a director of various companies, pri-
marily in the environmental sector.
* Independent directors under the provisions of the Gas Act .
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seek to adopt decisions by consensus. In 2023, the
Audit and Risk Committee approved all the decisions
submitted to it. For detailed information on how the
Audit and Risk Committee works, please consult Annex
II of the Corporate Governance Charter – Audit and
Risk Committee Rules of Internal Procedure https://
www.fluxys.com/en/about-us/fluxys-belgium/investors).
Frequency of meetings and attendance levels
The Audit and Risk Committee met four times in 2023.
Director attendance at Audit and Risk Committee meet-
ings in 2023 was as follows:
Attendance
Daniël Termont 3 out of 3 meetings
Sabine Colson 1 out of 4 meetings
Laurent Coppens 3 out of 4 meetings
Cécile Flandre 4 out of 4 meetings
Ludo Kelchtermans 1 out of 1 meetings
Anne Leclercq 4 out of 4 meetings
Wim Vermeir 3 out of 4 meetings
Sandra Wauters 4 out of 4 meetings
Appointment and Remuneration
Committee
Composition of the Appointment and
Remuneration Committee
The Appointment and Remuneration Committee com-
prises seven non-executive directors, the majority of
whom must be independent within the meaning of
the Gas Act and the 2020 Belgian Code on Corporate
Governance. The committee has the required expertise
in remuneration policy.
Chairman
Koen Van den Heuvel
Members
• Valentine Delwart*
• Cécile Flandre
• Sandra Gobert*
• Gianni Infanti
• Roberte Kesteman*
• Geert Versnick
Invited in an advisory capacity
Pascal De Buck, Managing Director and CEO.
Secretariat
Anne Vander Schueren, HR Director, acts as secretary
to the Appointment and Remuneration Committee.
Issues examined
The Appointment and Remuneration Committee was
set up within the Board of Directors to assist it in all
matters concerning the appointment and remuneration
of directors and members of the Management Team
BE. It has the powers assigned to a remuneration com-
mittee by law as well as any other powers that may be
assigned to it by the Board of Directors. In 2023, the
Appointment and Remuneration Committee addressed
the following main issues:
• The compilation of the draft remuneration report;
• The compilation of opinions for the Board of Direc-
tors concerning the appointments of directors and
the reappointment of an independent director;
• The preparation of the objectives for
the Managing Director and the mem-
bers of the Management Team BE;
• The preparation of the evaluation of
the Managing Director and the mem-
bers of the Management Team BE;
• The compilation of recommendations on the
remuneration of the Managing Director (fixed and
variable remuneration and long-term incentives);
• The compilation of recommendations on the
remuneration of the members of the Man-
agement Team BE (fixed and variable remu-
neration and long-term incentives) following
a proposal by the Managing Director;
• The state of progress regarding the
company targets for 2023;
• Monitoring of the remuneration policy.
Operation
Decisions by the Appointment and Remuneration Com-
mittee are adopted by a simple majority of votes cast by
those members present or represented, in line with their
assigned powers. The members of the Appointment and
Remuneration Committee seek to adopt decisions by
consensus. In 2023, the Appointment and Remuneration
Committee approved all the decisions submitted to it. For
detailed information on how the Appointment and Remu
-
neration Committee works, please consult Annex III of the
Corporate Governance Charter – Appointment and Remu
-
neration Committee Rules of Internal Procedure (https://
www.fluxys.com/en/about-us/fluxys-belgium/investors).
* Independent directors under the provisions of the Gas Act .
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
Issues examined
The Corporate Governance Committee was set up
within the Board of Directors in order to carry out the
tasks conferred upon it by the Gas Act. In 2023, the
Corporate Governance Committee mainly addressed
the following issues:
• Preparation of the 2022 annual report by the
Corporate Governance Committee, drafted on the
basis of Article 8/3 section 5(3) of the Gas Act;
• The compilation of the opinion to be returned
to the Board of Directors concerning the reap-
pointment of an independent director.
Operation
Decisions by the Corporate Governance Committee
are adopted by a simple majority of votes cast by
those members present or represented, in line with
their assigned powers. The members of the Corporate
Governance Committee seek to adopt decisions by
consensus. In 2023, the Corporate Governance Com-
mittee approved all the decisions submitted to it. For
detailed information on how the Corporate Governance
Committee works, please consult Annex I of the Cor-
porate Governance Charter – Corporate Governance
Committee Rules of Internal Procedure (https://www.
fluxys.com/en/about-us/fluxys-belgium/investors).
Frequency of meetings and attendance levels
The Corporate Governance Committee met once
in 2023 and, on one occasion, took a decision with
unanimous written agreement of the directors. Direc-
tor attendance at Corporate Governance Committee
meetings in 2023 was as follows:
Attendance
Sabine Colson 1 out of 1 meeting
Laurent Coppens 0 out of 1 meeting
Valentine Delwart 1 out of 1 meeting
Sandra Gobert 1 out of 1 meeting
Roberte Kesteman 1 out of 1 meeting
Anne Leclercq 0 out of 1 meeting
Josly Piette 1 out of 1 meeting
Frequency of meetings and attendance levels
The Appointment and Remuneration Committee met
four times in 2023 and, on one occasion, took a deci-
sion with unanimous written agreement of the directors.
Director attendance at Committee meetings in 2023
was as follows:
Attendance
Koen Van den Heuvel 4 out of 4 meetings
Valentine Delwart 2 out of 4 meetings
Cécile Flandre 3 out of 4 meetings
Sandra Gobert 4 out of 4 meetings
Gianni Infanti 4 out of 4 meetings
Roberte Kesteman 4 out of 4 meetings
Geert Versnick 4 out of 4 meetings
Corporate Governance Committee
Composition of the Corporate Governance
Committee
The Corporate Governance Committee comprises
seven non-executive directors, of whom at least two
thirds must be independent under the provisions of
the Gas Act.
Chairman
Sabine Colson*
Members
• Laurent Coppens
• Valentine Delwart*
• Sandra Gobert*
• Roberte Kesteman*
• Anne Leclercq*
• Josly Piette
Invited in an advisory capacity
Pascal De Buck, Managing Director and CEO..
Secretariat
Nicolas Daubies, Dpt. Director Group General Counsel
& Company Secretary, acts as secretary to the Corpo-
rate Governance Committee.
* Independent directors under the provisions of the Gas Act .
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Managing Director and CEO and
Management Team BE in 2023
Composition
Pascal De Buck is the Managing Director of Fluxys Bel-
gium. He is also the company's Chief Executive Officer.
The Managing Director can delegate some of his pow-
ers to a 'Management Team BE' that is composed as
follows:
• Arno Büx, member of the Management
Team BE and Chief Commercial Officer
• Christian Leclercq, member of the Management
Team BE and Chief Financial Officer
• Peter Verhaeghe, member of the Management
Team BE and Chief Technical Officer
Nicolas Daubies, Dpt. Director Group General Counsel
& Company Secretary, acts as secretary to the Man-
agement Team BE. Director Group General Counsel &
Company Secretary, acts as secretary to the Manage-
ment Team BE.
Deliberations
The Management Team BE assists the Managing Direc-
tor in the tasks assigned to him. It meets as often as it
deems necessary and in any case weekly, unless hin-
dered in some way. The Managing Director convenes
the members and any guests and sets the agenda.
Management Team BE is assisted by an Executive Com-
mittee composed as follows:
• Damien Adriaens, Dpt. Director
Commercial Regulated
• Nicolas Daubies, Dpt. Director Group
General Counsel & Company Secretary
• Raphaël De Winter, Director nextgrid
• Jan Van de Vyver, Dpt. Director Installations & Grid
• Rafaël Van Elst, Director Construction,
Engineering & Gas Flow
• Anne Vander Schueren, Director Human Resources
• Leen Vanhamme, Director
Transformation & Sustainability
• Erik Vennekens, Director Digital
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
Remuneration Report
Introduction
Fluxys Belgium's remuneration policy is submitted to
the General Meeting pursuant to the Code of Compa-
nies and Associations. It is then published on the com-
pany's website at https://www.fluxys.com/en/about-us/
fluxys-belgium/investors.
This report provides information on the implementation
of this policy over the past financial year.
By way of introduction, the remuneration policy aims
to contribute to the company's mission and objective,
namely to serve as the designated operator of Bel-
gium's natural gas network, the Loenhout storage facil-
ity and the Zeebrugge LNG terminal; to be a key player
in a sustainable energy future; and to offer reliable,
affordable energy flows on the market. In addition,
the company's new objectives are to be the essential
infrastructure partner with a view to accelerating the
energy transition and to be designated as the operator
of the hydrogen and CO
2
transmission networks (for
CO
2
in joint venture).
The remuneration policy applicable to the Managing
Director and CEO and the Management Team BE has
been established as per the remuneration policy for the
entire company. This policy is based on an objective,
transparent classification system intended to:
• ensure that the salary package offered is
in line with the market in order to attract and
retain staff with the required expertise;
• provide for performance-related remuneration
that varies according to each individual's respon-
sibilities and contribution to Fluxys Belgium's
objectives, with the amount of this remuneration
being based on the extent to which company,
transversal and individual objectives are achieved;
• encourage professionalism, commitment as
well as a consistent, cross-functional and
sustainable approach, while fully respect-
ing and supporting the company's values.
The remuneration of non-executive Board members is
based on market practice and takes into account their
role, specific tasks, the associated responsibilities and
time commitment.
The remuneration awarded in 2023 is in line with the
company's remuneration policy, the company's per-
formance (with the company continuing to perform
extremely well throughout this specific year) and its
short- and long-term goals. More specifically, the com-
pany was able to ensure the continuity of its operations
and provide maximum support for supply in North-West
Europe, despite the particularly complex challenge due
to the impact of the conflict in Ukraine. It continues to
take important steps in the transition to a sustainable
energy future.
It should be noted that, by way of derogation from Princi-
ples 7.6 and 7.9 of the 2020 Belgian Code on Corporate
Governance, directors and members of the executive
management team do not receive any remuneration in
the form of Fluxys Belgium shares. This derogation is
justified in light of the regulated nature of the company's
activities, which are characterised by other mechanisms
intended to ensure the creation of value in the long term
and a very relative correlation between performance
and share price.
Remuneration of non-executive
directors
During the previous financial year, Fluxys Belgium
set the non-executive directors' remuneration at the
same level as the previous financial year in line with
the principles outlined in the Articles of Association, the
Corporate Governance Charter and the remuneration
policy.
Remuneration comprises a fixed total amount, set
by the General Meeting, that the Board of Directors
distributes between the non-executive directors on
the basis of the workload involved in their individual
roles within the company (maximum indexed annual
amount of €360,000 as at 1 July 2007 or €541,260.46
as at 31 December 2023). Non-executive directors
and government representatives also receive an
attendance fee of €250 for each Board and committee
meeting they attend.
Non-executive directors shall receive neither
remuneration for performance, e.g. bonuses and long-
term incentive schemes, nor benefits in kind or pension
plan benefits. The remuneration of non-executive
directors comprises solely a fixed amount.
At the end of the first six-month period, directors are
paid an advance on their remuneration and attendance
fees. This advance is calculated on the basis of the
indexed base remuneration and in proportion to the
duration of the directorship over the six-month period.
A final payment (full settlement) is made in December
of the year in question.
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(5) This director transferred his remuneration and
attendance fees to Nuhma, Het Limburgs klimaatbedrijf.
(6) This director transferred his remuneration and
attendance fees to SOCOFE.
(7) This director transferred his remuneration and
attendance fees to AG Insurance.
Fluxys Belgium's non-executive directors do not hold
any paid directorships in other Fluxys group companies.
Mr Tom Vanden Borre and Mr Maxime Saliez were
appointed the Dutch-speaking2 and French-speaking
representatives of the federal government respectively
on 8 February 2021.
Remuneration of the Managing
Director and CEO and members of the
Management Team BE
Total remuneration
The remuneration paid to the Managing Director and
CEO and to the members of the Management Team
BE pursuant to the remuneration policy comprises the
following components:
• Base salary: fixed amount
• Performance-related remuneration: based on the
degree to which the objectives set each year have
been achieved (company and individual objectives);
• Performance-related remuneration for long-
term objectives: based on the degree to which
the objectives set for each regulatory period
(four years) have been achieved, with pay-
ment possible every two years;
• a defined-contribution pension plan administered
in accordance with the rules applicable to com-
panies in the gas and electricity sectors; and
• other components: expenses to cover insurance,
company cars and gas and electricity sector benefits.
Remuneration of non-executive
directors
For their work on Fluxys Belgium's Board of Directors
and its various committees, the non-executive directors
received the following gross remuneration and attend-
ance fees in 2023.
Directors and government
representatives Gross total in euro
Andries Gryffroy 21,555.02
Claude Grégoire 5,001.00
Abdellah Achaoui (1) 13,778.01
Sabine Colson (2) 26,056.03
Laurent Coppens (3) 26,306.03
Patrick Côté (4) 2,820.37
Valentine Delwart 26,306.03
Leen Dierick 13,778.01
Cécile Flandre 27,306.03
Sandra Gobert 26,806.03
Gianni Infanti 20,542.02
Ludo Kelchtermans (5) 15,903.51
Roberte Kesteman 26,806.03
Anne Leclercq 26,806.03
Jean-Claude Marcourt 8,777.01
Josly Piette (6) 20,042.02
Daniël Termont 22,667.52
Koen Van den Heuvel 20,542.02
Wim Vermeir (7) 17,721.65
Geert Versnick 20,042.02
Sandra Wauters 20,792.02
Maxime Saliez 13,778.01
Tom Vanden Borre 13,528.01
Total 437,660.43
The total amount of €437,660.43 comprises
€390,910.43 in directors' fees and €46,750.00 in
attendance fees.
At their request, notification is hereby given that some
directors have transferred their remuneration and
attendance fees:
(1) This director transferred his remuneration and
attendance fees to Interfin.
(2) This director transferred her remuneration and
attendance fees to Wallonie Entreprendre.
(3) This director transferred his remuneration and
attendance fees to Interfin.
(4) This director transferred his remuneration and
attendance fees to Caisse de dépôt et placement du
Québec.
2. Royal Decree of 31 January 2021 on the dismissal and appointment of federal government auditors to the Boards of Directors of the relevant opera-
tors, as provided for in Article 8/3(1/3) of the Act of 12 April 1965 concerning the transmission of gaseous and other products by pipeline (published in
the Belgian Official Gazette on 8 February 2021).
146
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
Setting remuneration
After consulting the Nomination and Remuneration
Committee, the Board of Directors has assessed the
Managing Director and CEO in light of the extent to
which the stipulated objectives were achieved. The
Managing Director and CEO of Fluxys Belgium also
gave the Nomination and Remuneration Committee an
explanation of the achievement of objectives regarding
the evaluation of the members of Management Team
BE in 2023.
The Board of Directors met to decide on the remu-
neration of the Managing Director and CEO and the
members of Management Team BE.
The Board of Directors:
• approved Fluxys Belgium's perfor-
mance and realisations for 2023;
• determined the amount of Pascal De Buck's
variable remuneration for 2023 as Managing
Director and CEO of Fluxys Belgium in 2023,
as proposed by the Nomination and Remu-
neration Committee, and determined the total
amount of the variable remuneration for 2023 of
the members of Fluxys Belgium's Management
Team BE, as proposed by Pascal De Buck.
The performance-related remuneration is awarded on
the basis of an assessment of the following criteria:
For the Managing Director and CEO
Short-term variable remuneration
Cycle Per year
Correlation between performance and payment Performance level Payment
Minimum bonus 80% or less No minimum %, depending on the
circumstances
Target bonus 100% 40%
Maximum bonus 120% or more 70%
Objectives Description Weighting
Company level Main company objectives 50%
Personal level Individual and cross-functional 35%
Style & values Leadership and link with company
values
15%
Long-term variable remuneration
Cycle Every four years / Payment possible every two years
Correlation between performance and payment Performance level Payment
Maximum bonus 100% or more 13%/year
Objectives Description Weighting
Company level Main long-term company objectives 100%
As an exception, the first cycle covered three years (2021, 2022 and 2023), with a first payment in 2023, for the 2022-2023
results. The CEO had waived his performance-related remuneration for the long-term objectives for 2021. A new cycle for 2024-
2027 was launched with a first payment possible in 2025 for the 2024-2025 results.
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For members of Management Team BE
Short-term variable remuneration
Cycle Per year
Correlation between performance and payment Performance level Payment
Minimum bonus 80% or less No minimum %, depending on the
circumstances
Target bonus 100% 30%
Maximum bonus 120% or more 45%
Objectives Description Weighting
Company level Main company objectives 40%
Personal level Individual and cross-functional 30%
Style & values Leadership and link with company
values
30%
Long-term variable remuneration
Cycle Every four years / Payment possible every two years
Correlation between performance and payment Performance level Payment
Maximum bonus 100% or more 7%/year
Objectives Description Weighting
Company level Main long-term company objectives 100%
As an exception, the first cycle covered three years (2021, 2022 and 2023), with a first payment in 2021, for the 2021 results, and
a second payment in 2023 for the 2022-2023 results. A new cycle for 2024-2027 was launched with a first payment possible in
2025 for the 2024-2025 results.
The main company objectives for 2023 can be summa-
rised as follows:
• Financial performance: control OPEX and
achieve Fluxys Belgium's financial targets;
• Energy transition and profitable, sustaina-
ble growth: become the essential partner
for accelerating the energy transition;
• Carry out the investment plan, focus-
ing on the energy transition;
• Safe, reliable and efficient operations focused
on an acceptable level of process inci-
dents and attention paid to security of sup-
ply (SOS) in the current market situation;
• Structural ESG approach with
defined concrete priorities.
Fluxys Belgium gives tangible form to its strategy and
commitment to sustainable development by means of
corporate objectives in the domains of Planet, Prosper-
ity and People, which are translated every year into per-
sonal objectives. For example, the emphasis on Fluxys'
role in the transition to a sustainable energy future is
a key factor in connection with variable remuneration,
as is the Go for Net 0 project, which aims to achieve
a company with no greenhouse gas emissions, and
active support for technologies and market models that
bolster the position of natural gas and carbon-neutral
gas in connection with the energy transition. In addition,
respect, open and reliable have been included as key
pillars in the short-term and long-term remuneration
plans.
The short-term and long-term company objectives, as
well as the respective personal objectives, together
form the framework within which the performance of
the Managing Director and CEO and the members of
Management Team BE are evaluated and within which
their corresponding variable remuneration is assessed.
The company objectives were exceeded in 2023,
specifically in financial performance, the implementa-
tion of the investment plan and the energy transition.
In November, two new entities were created, Fluxys
hydrogen, which aims to be designated as the hydro-
gen network operator in Belgium, and the joint venture
Fluxys c-grid, which aims to be designated as the CO
2
transmission operator in Belgium.
148
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
The Managing Director and CEO exceeded his personal
objectives and was also deemed to have performed
positively with regard to the objectives concern-
ing leadership and the promotion of company values.
The short-term variable remuneration granted to the
Managing Director and CEO is mainly paid in cash, with
the rest being paid into the group insurance scheme.
He may also request payment of part of the bonus
in the form of OTC options. The CEO also benefits
from performance-related remuneration for long-term
objectives for the period 2022-2023. Remuneration for
achieving long-term objectives is paid in cash.
The members of Management Team BE also exceeded
their personal objectives and were deemed to have
done well with regard to the objectives concern-
ing leadership and the promotion of the company's
values. Short-term variable remuneration is paid entirely
in cash, though members can request that part of the
bonus be paid in the form of OTC options. Regarding
the achievement of long-term objectives by the mem-
bers of Management Team BE, payment is made in
2023 for the years 2022 and 2023. Remuneration for
achieving long-term objectives is paid in cash.
Remuneration of the Managing Director and CEO and
members of the Management Team BE in 2023
Components Managing Director and CEO
(individual)
Members of the Management Team BE
(all together)
Base remuneration 374,262.70 623,483.96
Variable remuneration 249,714.00 244,356.00
Long-term variable remuneration 97,633.00 87,583.00
Pension 143,119.68 252,983.67
Other components 19,970.61 50,788.61
Total 884,699.99 1,259,195.24
Fixed/variable ratio** 61 % 74 %
39 % 26 %
* In accordance with the rules established for long-term remuneration, the calculation for 2022 and 2023 benefits took place in 2023.
** The fixed/variable ratio was modified following the payment of LTIs for two years in 2023.
The current remuneration policy takes into account
the legislation on the spread of variable remuneration.
In fact, more than half of the performance criteria relate
to several years due to the context of multi-year tariffs
and the energy transition.
Share-based remuneration
The Managing Director and CEO and the members of
the Management Team BE do not receive any shares
or stock options in the company as part of their base
or performance-related remuneration.
Severance pay
The company did not grant any severance pay during
the financial year.
Use of clawback rights
The Managing Director and CEO, in this capacity, and
the members of Management Team BE have employee
status. Fluxys Belgium applies the relevant legal provi-
sions to their employment contracts.
If it transpires that a deliberate error has resulted in
inaccurate financial data being used as the basis for the
variable remuneration, this shall be taken into account
in the evaluation process of the individual concerned
in the year in which the error is detected.
The company did not make use of this option in the
financial year in question.
Derogations from the remuneration policy
There were no derogations from the remuneration pol-
icy in 2023.
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Change in company remuneration and performance
Annual change 2019 2020 2021 2022 2023
Non-executive directors*
Total 462.051 464.687 469.910 442.266 437.660
Managing Director and CEO
Total 516.941 619.288 609.811 669.973 884.700
Members of the Management Team BE*
Total 893.778 977.242 1.022.346 1.057.617 1.259.195
Performance of the Fluxys Belgium group (consolidated financial statements – in EUR thousand)
Operating revenue 530.995 560.590 573.191 912.559 592.788
EBITDA 297.337 313.623 318.905 323.167 285.809
EBIT 134.841 133.482 137.821 147.305 129.570
Net profit 69.498 73.237 75.521 83.728 77.423
Average remuneration paid to other employees (in full-time equivalent)
Total** 88.689 89.292 91.112 99.140 103.191
* The number of members may vary from one year to the next.
** Total in the 'remuneration' segment for all employees, i.e. managerial and salaried staff, including the set group of employees who are still
remunerated in accordance with the 'old' working conditions, in line with the provisions of Joint Committee 326.
This 'remuneration' segment encompasses all gross components of remuneration, more specifically fixed annual salaries, as well as variable
components, including payment for on-call work, work breaks, overtime, etc. The other components of remuneration (employer contributions
to group insurance, personal insurance and the cost of certain job-related benefits) are not included.
The ratio between the highest remuneration paid to
management (the Managing Director and CEO) and
the lowest remuneration (expressed in full-time equiv-
alent) paid to employees was 1:21 in 2023. This ratio has
changed, due in part to the payment of the LTI for
two years in 2023 and in part to new recruitment at
a lower level.
Voting rights and special powers
The shareholders' meeting represents all shareholders
irrespective of their share category. The valid deci
-
sions it makes, based on the required majority, shall
be binding on all shareholders, even those who are
not present or who do not agree with said decisions.
Each share entitles the holder to one vote. In compliance
with the Royal Decree of 16 June 1994, and with the Arti
-
cles of Association within which these statutory provi-
sions are incorporated, special rights shall be allocated
to the golden share held by the Belgian State in Fluxys
Belgium in addition to the ordinary rights attached to all
other shares. Said special rights are exercised by the fed
-
eral Energy Minister and, in brief, comprise the following:
• the right to oppose any transfer, assignment as
a guarantee, or change in the purpose of Fluxys
Belgium's strategic assets (a list of which is
appended to the aforementioned Royal Decree
dated 16 June 1994) if the federal Energy Minister
considers that such an operation would adversely
affect national interests in the field of energy;
• the right to appoint two representatives of
the federal government in an advisory capac-
ity to Fluxys Belgium's Board of Directors;
• the right of representatives of the federal gov-
ernment to appeal to the federal Energy Minister
within four working days, on the basis of objective,
non-discriminatory and transparent criteria (as
defined in the Royal Decree of 5 December 2000),
against any decision of Fluxys Belgium's Board
of Directors (including the investment and activ-
ity plan and the associated budget) which in their
view breaches national energy policy guidelines,
including the government's national energy supply
objectives – such an appeal shall be suspensive;
if the federal Energy Minister has not annulled the
150
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Corporate Governance Declaration
decision concerned within eight working days after
this appeal, the decision shall become definitive;
• a special voting right in the event of deadlock at
the General Meeting concerning an issue affect-
ing the objectives of federal energy policy.
The special rights attached to the golden share held
by the Belgian State are listed in Articles 5, 10, 12 and
18 of Fluxys Belgium's Articles of Association. These
rights remain attached to the golden share for as long
as it is held by the Belgian State and Articles 3 to 5 of
the Royal Decree of 16 June 1994 granting the State a
golden share in Fluxys Belgium or replacement provi-
sions remain in force.
In addition to these statutory special rights, the golden
share also confers on its holder the right to receive a
portion 100 times greater than that associated with
each category-B and category-D share of all dividend
payments and all other payments which the company
makes to its shareholders.
Limitations on share transfers
set by law or the Articles of
Association
There are no limitations on the following share transfers:
• transfers of shares, subscription rights, ex-rights
or independent rights enabling the purchase of
shares (hereafter jointly referred to as "securities")
between a shareholder and companies associ-
ated with that shareholder within the meaning
of the Code on Companies and Associations;
• all transfers of category-D shares.
In all other cases, any shareholder planning to transfer
securities to another shareholder or a third party, in any
manner whatsoever, shall give all other shareholders,
except holders of category-D shares and the golden
share, the option of a priority purchase (on a pro rata
basis of their shareholding) of the securities relating to the
planned transfer, as per the procedures detailed below.
A shareholder planning to transfer shares must inform
the company in writing, requesting acknowledgement of
receipt, a) of the number of shares they plan to sell, b) of
the name of the prospective assignee(s) deemed to be
of good faith and the price irrevocably offered by said
assignee, and c) that the shares in question are being
offered to shareholders for priority purchase under the
same conditions. The Board of Directors shall inform the
other shareholders of this offer in the same manner within
two weeks. Every shareholder shall then have 60 days as
from receipt of the aforesaid written notification to inform
the transferring shareholder and the company, in writing
requesting acknowledgement of receipt, whether or not
they shall submit a bid and, if so, of the number of shares
they wish to acquire.
If requests exceed the number of shares offered for sale,
the Board of Directors shall distribute the shares between
the applicants on a pro rata basis of the number of shares
held by said applicants and up to the maximum number
of shares stated in their request.
If, upon the expiry of the aforementioned period of 60
days, no shareholders have indicated their intention
to acquire the shares offered, or where the number of
shares requested by the shareholders is less than the
number of shares offered, the shareholder who indicated
their intention to transfer shares in accordance with the
provisions of this article shall be able to complete the
planned transfer to the third party indicated in their notifi-
cation and under the conditions indicated therein.
Transactions and other contractual
relations
Directors and members of the Management Team BE
must take care to comply with all legal and ethical obli-
gations incumbent upon them, in particular with respect
to conflicts of interest as per Article 7:96 of the Code
on Companies and Associations.
The group's Corporate Governance Charter lays down
a procedure for transactions and other contractual
relations between directors or members of the Man-
agement Team BE and the company or its subsidiaries
and which do not fall within the scope of the aforemen-
tioned Article 7:96.
This procedure is as follows:
• Directors and members of the Management
Team BE must take care to comply with all legal
and ethical obligations incumbent upon them.
They must organise their private and busi-
ness affairs in such a way as to avoid as far
as possible any situation in which a personal
conflict of interest may arise between them-
selves and the company or its subsidiaries.
• In the event of any doubt on the part of a direc-
tor as to whether there is such a conflict of
interest, they must notify the Chairman of the
Corporate Governance Committee accordingly.
Members of the Management Team BE should
express their doubts to the Managing Director.
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151
• Where there is a personal conflict of interest, the
director concerned must, without being asked,
withdraw from the Board of Directors' meeting
while the matter in question is being discussed
and must not take part in the voting, including by
proxy, on said matter. Reasons for this absten-
tion must be stated in accordance with the terms
of the Code on Companies and Associations.
• Where there is deemed to be a conflict of inter-
est, the purpose and conditions of the transac-
tion or other contractual relationship must be
communicated for information purposes to the
Board of Directors by its Chairman. The Board of
Directors is also required to approve said pur-
pose and conditions (or refer them to the Board
of Directors of the subsidiary concerned for
approval) where the total amount of the individ-
ual transaction or accumulated transactions over
a three-month period is in excess of €25,000.
• If a member of the Management Team BE has,
directly or indirectly, an interest of a financial
nature which conflicts with a decision or a trans-
action falling within the remit of the Management
Team BE, they must notify the other mem-
bers of this before the Team deliberates. The
member concerned may not participate in the
deliberations of the Management Team BE on
that decision or transaction or in the vote.
The Board of Directors was not required to implement
the above procedure during financial year 2023.
Issue or buy-back of shares
Fluxys Belgium's Articles of Association authorise the
General Meeting to acquire the company's own shares in
accordance with legal provisions. No such decision was
taken at the 2023 Annual General Meeting. However,
when the company acquires its own shares with a view
to distributing them to its staff, no decision by the General
Meeting is required.
In the case of a capital increase, the shares for subscrip
-
tion in cash must be preferentially offered to sharehold-
ers, in proportion to the portion of the company's capital
their shares represent. However, the General Meeting
may, in the interests of the company, limit or eliminate
this pre-emptive right in compliance with legal provisions.
Auditor
In 2023, EY received remuneration totalling €222,844
for its work as the Fluxys Belgium group's auditor.
This remuneration is broken down as follows:
• Audit services as auditor for the group: €171,460.
• Audit services as auditor for the group's
foreign subsidiaries: €19,384.
• The auditor provided additional services
during the year for a total of €32,000.
Subsidiaries
The Board of Directors supervises the progress of
subsidiaries' activities at least twice a year when it
examines their consolidated accounts (annual and half-
yearly). The Board of Directors is also informed, as
and when appropriate, of major events and important
developments involving subsidiaries.
Disclosure of major holdings
The periodic disclosure pursuant to Article 74(8) of the
Act of 1 April 2007 was sent out on 13 December 2017.
As of the date of disclosure, Fluxys held 63,237,240
shares with voting rights in Fluxys Belgium. Publigas
held no shares with voting rights in Fluxys Belgium.
Publigas confirmed at that time that it had not acquired
or transferred any shares with voting rights in Fluxys
Belgium. No transfer of shares with voting rights took
place in 2023.
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
153
Financial
situation
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154
Consolidated financial statements under IFRS ________ 157
General information on the company _______________________________________________ 157
Corporate name and registered office _____________________________________________ 157
Group activities ___________________________________________________________________ 157
Consolidated financial statements of the Fluxys Belgium group under IFRS ____________ 158
A.
Consolidated balance sheet __________________________________________________ 158
B.
Consolidated income statement _______________________________________________ 160
C.
Consolidated statement of comprehensive income ____________________________ 161
D.
Consolidated statement of changes in equity __________________________________ 162
E.
Consolidated statement of cash flows __________________________________________ 163
Notes _____________________________________________________________________________ 165
Note 1a. Statement of compliance with IFRS ________________________________________ 165
Note 1b. Judgement and use of estimates __________________________________________ 165
Note 1c. Date of authorisation for issue _____________________________________________ 166
Note 1d. Standards, amendments and interpretations applicable
on 1 January 2023 _________________________________________________________________ 166
Note 1e. Standards, amendments and interpretations applicable
from 1 January 2024 and later ______________________________________________________ 167
Note 2. Accounting principles and policies __________________________________________ 167
Note 2.1. General principles ________________________________________________________ 167
Note 2.2. Balance sheet date ______________________________________________________ 167
Note 2.3. Events after the balance sheet date ______________________________________ 168
Note 2.4. Basis of consolidation _____________________________________________________ 168
Note 2.5. Intangible assets _________________________________________________________ 169
Note 2.6. Property, plant and equipment ___________________________________________ 170
Note 2.7. Leases ___________________________________________________________________ 172
Note 2.8. Financial instruments _____________________________________________________ 175
Note 2.9. Inventories _______________________________________________________________ 177
Note 2.10. Borrowing costs _________________________________________________________ 178
Note 2.11. Provisions _______________________________________________________________ 178
Note 2.12. Revenue recognition ____________________________________________________ 181
Note 2.13. Income taxes ___________________________________________________________ 184
Note 3. Acquisitions, disposals and restructuring _____________________________________ 185
Note 4. Income statement and operating segments _________________________________ 188
Note 4.1. Operating revenue _______________________________________________________ 191
Note 4.2. Operating expenses ______________________________________________________ 192
Note 4.3. Financial income _________________________________________________________ 197
154
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
155
Note 4.4. Finance costs ____________________________________________________________ 198
Note 4.5. Income tax expenses _____________________________________________________ 199
Note 4.6. Net profit/loss for the period _______________________________________________ 202
Note 4.7. Earnings per share ________________________________________________________ 203
Note 5. Segment balance sheet ____________________________________________________ 205
Note 5.1. Property, plant and equipment ___________________________________________ 207
Note 5.2. Intangible assets _________________________________________________________ 213
Note 5.3. Right of use assets ________________________________________________________ 216
Note 5.4. Other financial assets _____________________________________________________ 217
Note 5.5. Other non-current assets __________________________________________________ 217
Note 5.6. Inventories _______________________________________________________________ 218
Note 5.7. Trade and other receivables ______________________________________________ 219
Note 5.8. Short-term investments, cash and cash equivalents ________________________ 220
Note 5.9. Other current assets ______________________________________________________ 221
Note 5.10. Equity __________________________________________________________________ 222
Note 5.11. Interest-bearing liabilities _________________________________________________ 223
Note 5.12. Regulatory liabilities _____________________________________________________ 226
Note 5.13. Provisions _______________________________________________________________ 228
Note 5.14. Provisions for employee benefits _________________________________________ 231
Note 5.15. Deferred tax assets and liabilities _________________________________________ 242
Note 5.16. Trade and other payables _______________________________________________ 243
Note 6. Financial instruments _______________________________________________________ 244
Note 7. Contingent assets and liabilities – rights and liabilities of the group ____________ 249
Note 7.1. Litigation _________________________________________________________________ 249
Note 7.2. Assets and items held for third parties, in their name, but at the risk
and for the benefit of entities included in the consolidation scope ___________________ 249
Note 7.3. Guarantees received _____________________________________________________ 249
Note 7.4. Guarantees provided by third parties on behalf of the entity ________________ 249
Note 7.5. Commitments under terminalling service contracts _________________________ 250
Note 7.6. Other commitments ______________________________________________________ 250
Note 8. Related parties ____________________________________________________________ 251
Note 9. Directors’ and senior executives’ remuneration ______________________________ 254
Note 10. Events after the balance sheet date _______________________________________ 254
Statutory accounts of Fluxys Belgium SA according to Belgian GAAP _________________ 255
Balance sheet _____________________________________________________________________ 256
Income statement _________________________________________________________________ 258
Profit/loss appropriation ____________________________________________________________ 259
Capital at the end of the period ___________________________________________________ 260
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156
Income taxes ______________________________________________________________________ 261
Workforce _________________________________________________________________________ 262
Statutory auditor’s report and declaration
by responsible persons _____________________________ 266
Statutory auditor’s report to the General Meeting of Fluxys Belgium NV
for the financial year ended 31 December 2023 _____________________________________ 266
Report on the audit of the Consolidated Financial Statements _______________________ 267
Report on other legal and regulatory requirements __________________________________ 272
Declaration by responsible persons _________________________________________________ 275
Declaration regarding the financial year ended 31 December 2023 __________________ 275
Glossary ___________________________________________ 276
Pertinence of published financial ratios _____________________________________________ 276
Definition of indicators _____________________________________________________________ 277
Other property, plant and equipment investments outside the RAB ___________________ 277
Net finance costs __________________________________________________________________ 277
Interest expenses __________________________________________________________________ 277
EBIT _______________________________________________________________________________ 277
EBITDA ____________________________________________________________________________ 277
Net financial debt _________________________________________________________________ 277
FFO _______________________________________________________________________________ 278
RAB _______________________________________________________________________________ 278
Extended RAB _____________________________________________________________________ 278
RCF _______________________________________________________________________________ 278
WACC ____________________________________________________________________________ 278
Shareholder’s guide ________________________________ 282
Shareholder’s calendar ____________________________________________________________ 282
Payment of dividend _______________________________________________________________ 282
156
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
157
Consolidated financial
statements under IFRS
General information on the company
Corporate name and registered office
The registered office of the parent entity Fluxys Belgium SA is Avenue des Arts 31, B – 1040
Group activities
Belgium group also provides complementary services related to these main activities.
Transmission, storage and terminalling services in Belgium are subject to the Gas Act
1
.
Please refer to the specific chapters in the directors’ report for further information on the
activities of Fluxys Belgium group.
1
Act of 12 April 1965 concerning the transmission of gaseous and other products by pipelines as
later amended.
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Consolidated financial statements of the Fluxys
Belgium group under IFRS
A. Consolidated balance sheet
Consolidated Balance Sheet In thousands of €
Notes
31-12-2023
31-12-2022
I. Non-current assets 2,073,059
Property, plant and equipment 5.1 1,873,286
Intangible assets 5.2 27,238
Right of use assets 5.3 28,580
Investments accounted for using the equity
method
Other financial assets 5.4/6 111,210
Other receivables 6 21,496
Other non-current assets 5.5 11,199
II. Current assets 1,285,557
Inventories 5.6 50,443
Finance lease receivables 6 1,644
Current tax receivables 7,071
Trade and other receivables 5.7/6 102,056
Cash investments 5.8/6 32,998
Cash and cash equivalents 5.8/6 1,068,227
Other current assets 5.9 23,118
Total assets 3,358,616
158
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Consolidated Balance Sheet In thousands of €
Notes 31-12-2023
31-12-2022
I. Equity 5.10 613,413
Equity attributable to the parent company’s
shareholders
Share capital and share premiums 60,310
Retained earnings and other reserves 552,315
Non-controlling interests 788
II. Non-current liabilities 2,297,633
Interest-bearing liabilities 5.11/6 1,070,311
Regulatory liabilities 5.12 1,039,716
Provisions 5.13 3,939
Provisions for employee benefits 5.14 48,455
Other non-current financial liabilities 6 4,010
Deferred tax liabilities 5.14 131,202
III. Current liabilities 447,570
Interest-bearing liabilities 5.11/6 55,336
Regulatory liabilities 5.12 219,122
Provisions 5.13 291
Provisions for employee benefits 5.13 3,508
Current tax payables 4,248
Trade and other payables 5.16/6 118,956
Other current liabilities
2
Total liabilities and equity 3,358,616
2
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B. Consolidated income statement
Consolidated income statement In thousands of €
Notes 31-12-2023
31-12-2022
Operating revenue 4.1 592,788
Sales of gas related to balancing operations and
operational needs
Other operating income 19,594
Consumables, merchandise and supplies used 4.2.1 -8,895
-5,582
Purchase of gas related to balancing of
operations and operational needs
-157,389
-275,178
Miscellaneous goods and services 4.2.2 -179,845
-465,521
Employee expenses 4.2.3 -135,240
-132,931
Other operating expenses 4.2.4 -5,965
-4,958
Depreciations 4.2.5.1 -166,894
-168,051
Provisions 4.2.5.2 -745
Impairment losses 4.2.5.3 11,400
-14,804
Operational profit/loss 129,570
Change in the fair value of financial instruments 262
-1,298
Financial income 4.3 37,606
Finance costs 4.4 -70,777
-40,805
Profit/loss before taxes 96,661
Income tax expenses 4.5 -19,238
-26,063
Net profit/loss for the period 4.6 77,423
Fluxys Belgium share 77,423
Non-controlling interests 0
Basic earnings per share attributable to the
parent company's shareholders in €
4.7 1.1019
Diluted earnings per share attributable to the
parent company’s shareholders in €
4.7 1.1019
160
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
C. Consolidated statement of comprehensive income
Consolidated statement of comprehensive income In thousands of €
Notes 31-12-2023
31-12-2022
Net profit/loss for the period 4.6 77,423
Items that will not be reclassified subsequently
to profit or loss
Remeasurements of employee benefits 5.12 -13,394
Income tax expense on these variances 3,348
-5,726
Other comprehensive income -10,046
Comprehensive income for the period 67,377
Fluxys Belgium share 67,377
Non-controlling interests 0
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D. Consolidated statement of changes in equity
Consolidated statement of changes in equity In thousands of €
Share
capital
Share
pre-
mium
Reserves
not
available
for distri-
bution
Retained
earnings
Reserves for
employee
benefits
Other
compre-
hensive
income
Equity
attributable
to the
parent
company’s
share-
holders
Non-
control-
ling
interests
Total
equity
I. BALANCE AS AT 31-
12-2021
1. Comprehensive
income for the period
2. Dividends paid
-96,964
-96,964
-96,964
II. CLOSING BALANCE
AS AT
31-12-2022
1. Comprehensive
income for the
Period
2. Dividends paid
-98,369
-98,369
-98,369
3. Capital increases
III. CLOSING BALANCE
AS AT
31-12-2023
162
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
E. Consolidated statement of cash flows
Consolidated statement of cash flows (indirect method) In thousands of €
Notes
31-12-2023
31-12-2022
I. Cash and cash equivalents, opening balance A. 1,070,708
II. Net cash flows from operating activities 356,266
1. Cash flows from operating activities 345,568
1.1. Profit/loss from continuing operations B. 129,569
1.2. Non cash adjustments 447,983
1.2.1. Depreciations B. 166,894
1.2.2. Provisions B. 745
-6,993
1.2.3. Impairment losses B. -11,400
1.2.4. Other non-cash adjustments 640
-626
1.2.5. Increase (decrease) of the regulatory liabilities 5.12 291,104
1.3. Changes in working capital -231,984
1.3.1. Decrease (increase) of inventories 5.6 23,644
-38,433
1.3.2. Decrease (increase) of tax receivables A. 901
-956
1.3.3. Decrease (increase) of trade and other
receivables
A. 62,264
-73,838
1.3.4. Decrease (increase) of other current assets -7,628
-153
1.3.5. Increase (decrease) of tax payables 1,070
-126
1.3.6. Increase (decrease) of trade and other
payables
A. -333,230
1.3.7. Increase (decrease) of other current liabilities A. 20,995
2. Cash flows relating to other operating activities 10,698
-32,439
2.1. Current tax paid -26,600
-36,732
2.2. Interests from investments, cash and cash
equivalents
4.3 36,689
2.3. Other inflows (outflows) relating to other
operating activities
4.3/4.4
III. Net cash flows relating to investment activities -177,564
-124,784
1. Acquisitions -185,595
-145,118
1.1. Payments to acquire property, plant and
equipment, and intangible assets
5.1/5.2
-184,776
-116,916
1.2. Payments to acquire other financial assets -819
-28,202
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Consolidated statement of cash flows (indirect method)
In thousands of €
Notes 31-12-2023
31-12-2022
2. Disposals 14,916
2.1. Proceeds from disposal of property, plant and
equipment, and intangible assets
2.2. Proceeds from disposal of other financial assets 6 12,000
3. Increase (-)/ Decrease (+) of cash investments A. -6,885
IV. Net cash flows relating to financing activities -181,183
-180,092
1. Proceeds from cash flows from financing 1,238
1.1. Proceeds from issuance of equity instruments D. 788
1.2. Proceeds from finance leases A. 450
2. Repayments relating to cash flows from financing -49,411
-48,455
2.1. Repayment of finance lease liabilities 5.11 -5,048
-5,060
2.2. Repayment of other financial liabilities 5.11 -44,363
-43,395
3. Interests -34,641
-35,274
3.1. Interest paid classified as financing -34,680
-35,330
3.2. Interest received classified as financing 39
4. Dividends paid D. -98,369
-96,964
V. Net change in cash and cash equivalents -2,481
VI. Cash and cash equivalents, closing balance A. 1,068,227
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Notes
Note 1a. Statement of compliance with IFRS
The consolidated financial statements of the Fluxys Belgium group for the financial year
ended 31 December 2023 have been prepared in accordance with the International
Financial Reporting Standards, as approved by the European Union and applicable on
the balance sheet date.
All amounts are stated in thousands of euro.
Note 1b. Judgement and use of estimates
The preparation of financial statements requires the use of estimates and assumptions to
determine the value of assets and liabilities, and to assess the positive and negative
consequences of unforeseen situations and events at the balance sheet date, as well as
revenues and expenses of the financial year.
Significant estimates made by the group in the preparation of the financial statements
relate mainly to the valuation of the recoverable amount of property, plant and
equipment, and intangible assets (see Notes 5.1 and 5.2), the valuation of rights of use
and lease obligations under leases (see Notes 5.3 and 5.11), the valuation of any
provisions and assets/liabilities (see Notes 5.13 and 7) and in particular the provisions for
litigation and pension and related liabilities (see Note 5.14).
Due to the uncertainties inherent in all valuation processes, the group revises its estimates
on the basis of regularly updated information. Future results may differ from these
estimates.
Other than the use of estimates, group management also uses judgement in defining the
accounting treatment for certain operations and transactions not addressed under the
IFRS standards and interpretations currently in force.
Therefore, in the balance sheet, the group records the regulatory liabilities corresponding
to the excess of regulated revenue received according to the real costs to be covered
by the authorized regulated tariffs. This difference is transferred from the income
statement to the balance sheet in the regulatory liabilities (non-current and current - See
Note 5.12). Where required, the regulatory assets are accounted for in the balance sheet
on the line for ‘regulatory assets’ when the regulated revenue received is lower than the
real costs to be covered by the authorised regulated tariffs.
These latter are recognised in as much as the group considers their recovery highly likely.
This accounting method (see Note 2.12) has been determined by the group, as no
definitive guidance on ‘rate-regulated activities’ has been published to date.
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Note 1c. Date of authorisation for issue
The Board of Directors of Fluxys Belgium SA authorised these IFRS financial statements for
issue on 28 March 2024.
Note 1d. Standards, amendments and interpretations applicable on 1 January
2023
The following standards and interpretations are applicable for the annual period starting
from 1 January 2023
● Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting policies
● Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and
Errors: Definition of Accounting Estimates
● Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS
9 – Comparative Information
● IFRS 17 Insurance Contracts (not applicable to reinsurance activities carried out
within the group by Flux Re)
● Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
●
● Amendments to IAS 12 International Tax Reform – Pillar Two Model Rules
For financial years starting on or after 31 December 2023 Publigas, including its
participation in Fluxys SA and its Belgian and foreign subsidiaries, will be subject to the
so-called Pillar two law “Wet houdende de invoering van een minimumbelasting
voor multinationale ondernemingen en omvangrijke binnenlandse groepen” of 19
December 2023. The law generally follows Council Directive (EU) 2022/2523 of 14
December 2022.
The law aims to ensure a global minimum level of taxation for Belgian multinational
enterprise groups and large-scale Belgian groups. The law includes a set of rules that
should result in the application of a minimum effective tax rate of 15% for Publigas
group, being a multinational enterprise group with a consolidated revenue
exceeding EUR 750 million for at least two of the four previous financial years.
Together with an external tax advisor, Publigas group is currently assessing the impact
of the new legislation. The group aims to timely and correctly comply with this new
legislation. Among other things, the application of the Transitional CbCR Safe
Harbour rules is currently being analysed. Based on an analysis of historical data,
Publigas group expects to be able to apply the Transitional CbCR Safe Harbour rules
in most jurisdictions where the group operates.
Fluxys Belgium has applied the exception to recognising and disclosing information
about deferred tax assets and liabilities related to Pillar two income taxes.
The application of these amendments didn’t have a significant impact on the
financial statements of the group.
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Note 1e. Standards, amendments and interpretations applicable from 1 January
2024 and later
At the date of authorization of these financial statements, the standards and
interpretations listed below have been issued but are not yet mandatory:
● Amendments to IAS 1 Presentation of Financial Statements – Classification of
Liabilities as Current or Non-current (the 2020 amendments and 2022
amendments), effective 1 January 2024
● Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments:
Disclosures, effective 1 January 2024
● Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability, effective 1 January 20252
● Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback, effective
1 January 2024
These standards, amendments and interpretations have not been adopted early. The
application of these standards, amendments and interpretations will have no significant
impact on the financial statements of the group.
Note 2. Accounting principles and policies
The accounting principles and policies set out below were approved at the Fluxys
Belgium Board of Directors meeting of 28 March 2024.
Changes or additions compared with the previous financial year are underlined.
Note 2.1. General principles
The financial statements fairly present Fluxys Belgium group’s financial position, results of
operations and cash flows.
The group’s financial statements have been prepared on the accrual basis of
accounting, except for the cash flow statement.
Assets and liabilities have not been offset against each other, except when required or
allowed by an international accounting standard.
Current and non-current assets and liabilities have been presented separately in the
balance sheet of the Fluxys Belgium group.
The accounting policies have been applied in a coherent manner.
Note 2.2. Balance sheet date
The consolidated financial statements are prepared as of 31 December, i.e. the parent
entity’s balance sheet date.
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Note 2.3. Events after the balance sheet date
The book value of assets and liabilities at the balance sheet date is adjusted when events
after the balance sheet date provide evidence of conditions that existed at the balance
sheet date.
Adjustments can be made until the date of authorisation for issue of the financial
statements by the Board of Directors.
Other events relating to circumstances arising after balance sheet date are disclosed in
the notes to the consolidated financial statements, if significant.
Note 2.4. Basis of consolidation
The Fluxys Belgium group's consolidated financial statements have been prepared in
accordance with IFRS and in particular with IFRS 3 (Business Combinations), IFRS 10
(Consolidated Financial Statements), IFRS 11 (Joint Arrangements) and IAS 28
(Investments in Associates and Joint Ventures).
Subsidiaries
The Fluxys group’s consolidated financial statements include the financial statements of
the parent entity and the financial statements of the entities it controls and its subsidiaries.
The investor controls an investee when he is exposed—or has rights—to variable returns
from its involvement with the investee and has the ability to affect those returns through
its power over the investee.
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Investments in joint ventures
A joint venture is a joint arrangement in which the parties exercising joint control over the
undertaking have rights to the net assets of the undertaking. Joint control means
contractually agreed sharing of the control exercised over an undertaking, which only
exists in the cases where the decisions on the relevant activities require the unanimous
consent of the parties sharing the control.
The results and assets and liabilities of associates or joint ventures are accounted for in
the present consolidated financial statements in accordance with the equity method,
unless the investment, or a part thereof, is classified as an asset held for sale in
accordance with IFRS 5.
An investment in an associate or joint venture is initially accounted for at cost. It then
integrates the share of the group in the net results and the other elements of the
comprehensive result of the undertaking accounted for under the equity method. Finally,
dividends distributed by this entity decrease the value of the investment.
Note 2.5. Intangible assets
An intangible asset is recognised as an asset if it is probable that future economic
benefits attributable to the asset will flow to the entity and if the cost of the asset can be
measured reliably.
Intangible assets are recognised at cost in the balance sheet (cost method), less any
accumulated depreciation and any accumulated impairment losses.
Intangible assets with a limited useful life are depreciated over their useful life.
Computer software is depreciated at 20% per annum.
Subsequent expenditure is capitalised if it generates economic benefits exceeding the
initial standard of performance.
Intangible assets are reviewed at each balance sheet date to identify indications of
potential impairment that may have arisen during the financial year. In case such
indications are noted, an estimate of the recoverable amount of the related intangible
assets is made. The recoverable amount is defined as the higher of the fair value less
costs to sell of an asset and its value in use.
The value in use is calculated by discounting future cash inflows and outflows generated
by the continuous use of the asset and its final disposal at an appropriate discount rate.
Intangible assets are impaired when their book value exceeds the amount that can be
recovered, as a result of obsolescence of these assets or due to economic or
technological circumstances.
The useful life, the depreciation method, as well as the potential residual value of
intangible assets are reassessed at each balance sheet date and revised prospectively, if
applicable.
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Emission rights for greenhouse gases
Emission rights for greenhouse gases acquired at fair value are recognised as intangible
assets at their acquisition cost. Rights granted free of charge are recognised as intangible
assets at a nil book value.
The cost associated with emission of greenhouse gases in the atmosphere is recognised
as an operating expense, the counterpart being a liability for the obligation to deliver
allowances covering the effective emission over the period concerned (other debts). This
expense is measured by reference to the weighted average cost of the acquired or
granted allowances.
This liability is derecognised on the delivery of allowances to the government by
withdrawing emission rights from intangible assets.
In case the allowances are insufficient to cover the emission of greenhouse gases during
the financial year, the group accounts for a provision. This provision is measured by
reference to the market value at the balance sheet date of the allowances yet to be
purchased.
The excess emission rights not sold on the market are valued at the balance sheet date
by reference to the weighted average cost of the acquired or granted allowances, or at
market value if lower than the weighted average cost.
Note 2.6. Property, plant and equipment
Property, plant and equipment (PPE) is recognised as an asset if it is probable that future
economic benefits attributable to the asset will flow to the entity and if the cost of the
asset can be measured reliably.
PPE is recognised at cost in the balance sheet (cost method), less any accumulated
depreciation and any accumulated impairment losses.
Subsequent expenditure is capitalised if it generates economic benefits exceeding the
initial standard of performance.
PPE is reviewed at each balance sheet date to identify indications of potential
impairment that may have arisen during the financial year. In case such indications are
noted, an estimate of the recoverable amount of the PPE in question is established. The
recoverable amount is defined as the higher of the fair value less costs to sell of an asset
and its value in use. The value in use is calculated by discounting future cash inflows and
outflows generated by the continuous use of the asset and its final disposal at an
appropriate discount rate.
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Depreciation methods
PPE is depreciated over its useful life.
Each significant component of PPE is recognised separately and depreciated over its
useful life.
The depreciation method reflects the rate at which the group expects to consume the
future economic benefits related to the asset, taking into account the time during which
the assets may generate regulated revenue.
The regulated investments intended to increase the security of supply in Europe are
depreciated under a diminishing balance method, which more accurately reflects the
rate at which the group expects to consume the future economic benefits of these
assets. This is a specific list of regulated infrastructure investments, which are essential for
gas transmission in Europe and form an integral part of the RAB.
The methods and durations of depreciation used are as follows:
Straight-line method:
● 50 years for transmission pipelines in Belgium, terminalling facilities and tanks;
In line with the new tariff method applied since 01.01.2020, all investments (new and
existing) in gas transmission pipelines are fully depreciated by December 2049 at the
latest.
● 50 years for administrative buildings, staff housing and facilities;
● 40 years for storage facilities;
● 33 years for industrial buildings;
● 20 years for investments related to the extensions of the Zeebrugge LNG terminal;
● 10 years for equipment and furniture;
● 5 years for vehicles and site machinery;
● 4 years for computer hardware;
● 3 years for prototypes;
Declining-balance method:
● This method only applies for investments made to ensure security of supply: declining-
balance.
The useful life, the depreciation method, as well as the potential residual value of
property, plant and equipment are reassessed at each balance sheet date and revised
prospectively, if applicable.
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Note 2.7. Leases
Definition of ‘lease’
A contract is or contains a lease if it conveys a right to control the use of an identified
asset for a period of time in exchange for a consideration.
To determine whether a lease confers the right to control use of a determined asset for a
determined period of time, the entity must appreciate whether, throughout the period of
use, it has the right to:
● obtain substantially all of the economic benefits from the use of the asset; and
● direct the use of the asset.
To determine the duration of the lease, any options for renewal or termination are
considered, as required under IFRS 16, taking into account the probability of exercising
the option as well as whether it is under the control of the lessee.
The group as a lessee
At the start of the lease, the lessee recognises a right-of-use asset and a lease obligation.
Right-of-use assets
The group recognises right-of-use assets on the date of the start of the contract, i.e. the
date on which the asset becomes available for use. These assets are valued at the initial
cost of the lease obligation minus amortisation and any depreciation, adjusted to take
into account any revaluations of the lease obligation. The initial cost of the right-of-use
assets includes the present value of the lease obligation, the initial costs incurred by the
lessee, rent payments made on the start date or before that date, minus any incentives
obtained by the lessee. These assets are depreciated over the estimated lifetime of the
underlying asset or over the duration of the contract if this period is shorter, unless the
group is sufficiently certain of obtaining ownership of the asset at the end of the contract.
Right-of-use assets are presented separately from other assets as a different entry under
non-current assets.
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Lease obligations
The lease obligation is valued at the present value of the rent payments that have not
yet been paid. The present value of the rent payments must be calculated using the
interest rate implicit in the lease if it is possible to determine that rate. If not, the lessee
must use its incremental borrowing rate.
The incremental borrowing rate is the interest rate that the lessee would have to pay to
borrow over a similar term, and with a similar security, the funds necessary to obtain an
asset of similar value to the right-of-use asset in a similar economic environment.
Over the duration of the contract, the lessee values the lease obligation as follows:
● by increasing the book value to reflect the interest on the lease obligation;
● by reducing the book value to reflect the rent payments made;
● by revaluing the book value to reflect the new appreciation of the lease obligation
or amendments to the lease.
The services included in leases do not form part of the lease debt.
Lease obligations are presented in a separate entry under current and non-current
interest-bearing liabilities (see note 5.11).
Short-term leases and low-value leases
For short-term leases (duration of 12 months or less), the Fluxys Belgium group registers a
lease expense.
To determine the criteria for a low-value lease, a threshold has been determined, except
for vehicles, which are included in the group of vehicles leased for more than one year
without applying the value criteria.
For short-term leases, and low-value leases, the effect on profit/loss is not significant.
Presentation
In the consolidated income statement, the interest charge on the lease obligation is
presented separately from the depreciation charge that applies to the right-of-use asset.
In the cash flow statement, the cash flows will be presented as follows:
● cash outflows relating to the principal of the lease obligation and the interest paid, in
the financing activities;
● rent payments for short-term leases, low-value leases and variable rent payments
that have not been taken into account in the valuation of the lease obligations, in
the operating activities.
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The group as a lessor
The group leases out some facilities under finance lease as a lessor.
Assets under finance lease are assets for which the group substantially transfers risks and
rewards related to the economic ownership to the lessee. Assets leased under such
contracts are recognised on the balance sheet as receivables in an amount equal to the
net investment in the lease contract in question. Lease payments received are
apportioned between financial income and repayments of the lease receivable so as to
achieve a constant rate of return on the net investment by the group in the finance lease
contract.
When the classification of contracts under finance lease is based on the present value of
the minimum lease payments, the most pertinent criteria adopted is the following: a
contract is considered a finance lease if the present value of the minimum lease
payments amounts to at least 90% of the fair value of the leased asset at the inception of
the lease contract.
No residual value is assumed for gas transmission assets in Belgium, due to the specific
nature of the activities concerned.
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Note 2.8. Financial instruments
Recognition and derecognition of financial assets and liabilities
Recognition
Financial assets and liabilities are recognised when the group becomes party to the
instrument’s contractual terms.
Derecognition of financial assets
The group has to derecognise a financial asset if and only if the contractual rights on the
cash flows of the financial asset expire, or where it transfers almost all the risks and
advantages inherent to the ownership of the financial asset to a third party.
If the group neither transfers nor retains substantially all the risks and rewards of ownership
of a transferred asset, and retains control of the transferred asset, the group continues to
recognise the financial asset to the extent of its continuing involvement and recognises a
related liability for the amount received.
If the group keeps almost all the risks and advantages inherent to the ownership of the
financial asset, it continues to recognise the whole financial asset and recognises a
financial liability for the consideration received.
When a financial asset measured at amortised cost is derecognised, the difference
between the amortised cost and the sum of the considerations received is transferred to
the income statement.
When an investment in equity instruments until now measured at fair value with changes
to other comprehensive income are derecognised, the accumulated profit/loss
recognised previously in other comprehensive income is not reclassified to net income.
Derecognition of financial liabilities
The entity derecognises a financial liability only if this liability is extinguished, i.e. once the
obligation is fulfilled, cancelled or it expires.
The difference between the book value of an extinguished financial liability and the
consideration paid, including, where applicable, the assets (non-cash) transferred and
the liabilities acquired must be recognised in the income statement.
Unconsolidated equity instruments (such as shares and equity rights)
The Fluxys Belgium group values the unconsolidated equity instruments at fair value with
changes to other comprehensive income.
However, given the materiality of certain instruments and the unavailability of recent
market values, certain equity instruments are accounted for at the initial cost.
The dividends received for these equity instruments are recognised in financial income
under the item ‘Dividends from unconsolidated entities’.
Short-term investments, cash and cash equivalents
Cash investments in the form of bonds or commercial paper, having a maturity date
exceeding three months, are reported as financial assets measured at amortised cost.
These are shown in the balance sheet under non-current ‘other financial assets’ and
under current ‘investments’.
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Cash and cash equivalents held are reported as financial assets measured at amortised
cost.
The economic model used by the Fluxys Belgium group to manage financial assets aims
to hold them in order to obtain contractual cash flows. The sales of financial assets are
rare, and the group does not expect to proceed with such sales in the future, except in
the case of an increased credit risk for the assets over and above the policy advocated
by the group. A sale may also be motivated by an unexpected financing need.
Where the conditions required to be qualified as financial assets valued at amortised cost
are not met, these financial assets concerned are valued at fair value with changes to
net profit/loss.
Trade and other receivables
Trade and other receivables are stated at their face value reduced by any amounts
deemed unrecoverable.
When the time value of money is significant, trade and other receivables are discounted.
Impairment losses are recognised when the book value of these items at balance sheet
date exceeds their recoverable amount.
Expected credit losses and write-downs
Expected credit losses on financial assets accounted for at amortised cost are
calculated using an individual approach, based on the credit quality of the counterparty
and the maturity of the financial asset.
Expected credit losses are calculated using a probability of default over the useful life of
the financial asset.
A financial asset is impaired where one or more events have occurred with a negative
effect on the future estimated cash flows of this financial asset. The indications of the
impairment of a financial asset encompass data that may be observed on the following
events:
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● defaults in payments for more than 90 days,
● significant financial difficulty of the issuer or debtor and
● increasing probability of bankruptcy or financial restructuring of the lender.
If the economic forecast (for example gross domestic product) deteriorates over the
course of next year, which could lead to an increase in the number of defaults, the
historical default rates are adjusted. At each balance sheet date, the historical default
rates observed are updated and the changes in the forecast estimates are analysed.
Interest-bearing liabilities
Interest-bearing liabilities are recognised at the net amount received. Following initial
recognition, interest-bearing liabilities are recorded at amortised cost. The difference
between the amortised cost and the redemption value is recognised in the income
statement under the effective interest rate method over the term of the liabilities.
Trade payables
Trade payables are stated at face value.
When the time value of money is significant, trade payables are discounted.
Note 2.9. Inventories
Valuation
Inventories are valued at the lower of cost and net realisable value.
Inventories are written down to account for:
● a reduction in net realisable value, or
● impairment losses due to unforeseen circumstances related to the nature or use of
the assets.
This impairment on inventories is recognised in the income statement in the period in
which they arise.
Gas inventory
Gas inventory changes are valued under the weighted average cost method.
Supplies and consumables
Supplies and consumables are valued under the weighted average cost method.
Work in progress
Work in progress for third parties is valued at cost, including indirectly attributable costs.
When the outcome of a contract can be reliably estimated, contract revenue and
expenses are recognised as revenue and expenses respectively by reference to the
stage of completion of the contract at balance sheet date. Any expected loss is
recognised immediately as an expense in the income statement.
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Note 2.10. Borrowing costs
Borrowing costs directly attributable to the acquisition, building or production of assets
requiring a substantial period of time to get ready for their intended use (property, plant
and equipment, investment property, etc.) are added to the costs of the assets
concerned until they are ready for use or sale.
The amount of the borrowing costs to be capitalised is the actual cost incurred in
borrowing the funds, as reduced by income from any temporary investment of these
funds.
Note 2.11. Provisions
Provisions are recognised as a liability in the balance sheet when they meet the following
criteria:
● the group has a present (legal or constructive) obligation arising from a past event;
● it is probable (i.e. more likely than not) that the settlement of this obligation will lead
to an outflow of resources embodying economic benefits;
● the amount of the obligation can be reliably estimated.
No provision is recognised if the above conditions are not met.
The amount recognised as a provision is the best estimate of the expenditure required to
settle the present obligation at the balance sheet date, in other words the amount the
entity reasonably expects to have to pay to discharge the obligation at balance sheet
date, or to transfer it to a third party at the same date.
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Employee benefits
Some companies in the Fluxys group have established supplementary ‘defined benefit’
or ‘defined contribution’ pension plans. Benefits provided under these plans are based
on the number of years of service and the employee’s salary.
‘Defined benefit’ pension plans enable employees to benefit from a capital sum
calculated on the basis of a formula which takes account of their annual salary at the
end of their career and their seniority when they retire.
‘Defined contribution’ pension plans provide employees with a capital sum accumulated
from personal and employer contributions, based on the salary.
In Belgium, the law requires that the employer guarantee a minimum return for defined
contribution, which varies based on the market rates.
The accounting method used by the group to value these ‘defined contribution pension
plans, with a guaranteed minimum return’, is identical to the method used for ‘defined
benefit’ plans.
In case of death before retirement, these plans provide a capital sum for the surviving
spouse, as well as allowances for orphans.
Other employee benefits
Certain group companies offer their employees post-employment benefits such as the
reimbursement of medical costs and price subsidies, and other long-term benefits
(seniority bonuses).
Valuation
These liabilities are valued annually by a qualified actuary.
Regular payments made in relation to the supplementary pension plans are recognised
as expenses at the time they are incurred.
‘Defined benefit’ pension plans
Provisions for pensions and other collective agreements are reported in the balance
sheet in accordance with IAS 19 (Employee Benefits), using the projected unit credit
method (PUCM).
The current value of post-employment benefits is determined at each balance sheet
date based on the projected salary estimated at the end of the employee’s career, the
rate of inflation, life expectancy, staff turnover and the expected age of retirement. The
present value of defined benefit obligations is determined using a discount rate based
on high-quality bonds with maturity dates close to the weighted average maturity of the
plans concerned and which are denominated in the currency in which the benefits are
to be paid.
The amount accounted for in respect of post-employment liabilities corresponds to the
difference between the current value of future obligations and the fair value of assets in
the plan destined to cover them. Any deficit resulting from this valuation is subject to the
recognition of a provision to cover this risk.
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In the opposite case, an asset is recognised in line with the surplus of the defined benefit
pension plan, capped at the current value of any future reimbursement from the plan or
any reduction in future contributions to the plan.
The remeasurements of the liabilities or assets in the balance sheet comprise:
● the actuarial gains or losses on the defined benefit liabilities resulting from
adjustments relating to experience and/or changes in actuarial assumptions
(including the effect of the change in the discount rate);
● the return on plan assets (excluding amounts included in net interest) and changes in
the effect of the asset ceiling (excluding amounts included in net interest).
These remeasurements are directly recognised in equity through the other items in
comprehensive income.
‘Defined contribution’ pension plans
The liabilities of the group with regard to ‘defined contribution’ plans are limited to the
employer contributions paid recorded in the results.
Actuarial gains and losses relating to other long-term employee benefits
The other long-term benefits are accounted for in the same way as the post-employment
benefits, but revaluations are fully accounted for in the financial results in the financial
year in which they occur.
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Note 2.12. Revenue recognition
The group accounts for operating revenue as it meets a service obligation by supplying
the customer with the promised good or service and as this latter obtains control thereof.
The Fluxys Belgium group uses a five-stage approach to determine whether a contract
entered into with a customer may be accounted for and the way in which revenue
should be recognised:
1. identification of the contract,
2. identification of the service obligations,
3. determination of the transaction price,
4. distribution of the transaction price between the service obligations and
5. recognition of operating revenue where the service obligations are met or where the
control of the goods or services is transferred to the customer.
Group revenues mainly come from standard regulated contracts for which both the
services to be provided and the price of the service are clearly identified.
Fluxys Belgium and its subsidiaries transfer the control of their regulated services
progressively and in doing so meet their service obligation and account for operating
revenue progressively. It should be noted that the revenue from regulated activity is
recognised based on reserved capacities.
Furthermore, the Fluxys Belgium group makes sales of gas that are necessary for
balancing operations and its operational needs. These services, fulfilled at a specific time,
are recognised in operating revenue at the time of their fulfilment. From 1 June 2020,
these balancing operations are conducted by the joint venture with Balansys.
Regulated income received by the group may generate a gain or a loss compared with
the target rate of return on the capital invested. Gains are reported and recognised as
regulatory liabilities, whereas losses are included in operating revenue to offset the
accounting of regulatory assets. The Group has no regulatory assets in the published
periods.
The regulatory framework is explained in further detail in the chapter on ‘Regulatory and
legal framework’ of the annual report.
In note 4 - Segment income statement, the distinction is shown between the revenue
invoiced and the revenue recognised. The latter includes the revenue invoiced, but also
the movements in regulatory assets and liabilities.
The following table provides more detailed information on the Group’s services
(performance obligations), types of contract, pricing, and the way in which operating
revenue is recognised. Most of this revenue is regulated.
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| Legal | Revenue | Performance obligation: nature, customer | Contract type and |
| entity | stream | and timing of satisfaction | pricing |
| Fluxys | Transmission | Nature of performance obligation: sale of | Regulated Standard |
| Belgium | services | capacity and related services in the | Transmission |
| pipeline infrastructure to its customers to | Agreement. | ||
| transmit natural gas to distribution system | Regulated tariffs are | ||
| operators, power stations and major | expressed in | ||
| industrial end-users in Belgium or to transport | €/kWh/h/year | ||
| natural gas to a border point for | |||
| transmission to other end-user markets in | |||
| Europe. | |||
| Customers: gas shippers reserve capacity | |||
| slots (short + long term contracts) | |||
| Revenue recognition: the performance | |||
| obligation consists in making these | |||
| capacities available for the customers for | |||
| use at the customers’ discretion (cf. IFRS | |||
| 15.26 (e)). | |||
| Basically, the contracts between Fluxys | |||
| Belgium and their customers determine that | |||
| the latter reserve a certain capacity that | |||
| can be used over a certain period, at the | |||
| choice of the customer. | |||
| Thus, Fluxys Belgium will transfer to the | |||
| customer a series of services that are | |||
| substantially the same and that have the | |||
| same pattern of transfer to the customer | |||
| (IFRS 15.22 (b)). | |||
| Each service in the series provided by Fluxys | |||
| Belgium is a performance obligation | |||
| satisfied over time, as described by IFRS | |||
| 15.35a (the customer simultaneously | |||
| receives and consumes the benefits | |||
| provided by Fluxys’ performance as Fluxys | |||
| performs). | |||
| Therefore, the reserved capacities are | |||
| invoiced and recognised monthly over the | |||
| period covered by the contract related to | |||
| the capacities reserved (in accordance | |||
| with IFRS 15.39 and IFRS 15.B15), i.e. over | |||
| time recognition. | |||
| Fluxys | Storage | Regulated Standard | |
| Belgium | capacity | Nature of performance obligation: storage | Storage Agreement |
| service | services enabling customers to use buffer | (in combination with | |
| capacity flexibly according to their needs. | a regulated Standard | ||
| The gas is stored in the underground | Transmission | ||
| facilities in Loenhout, Belgium. | Agreement to enable | ||
| Most of the revenues are generated by the | injecting into and | ||
| sale of standard bundled packages, | withdrawing from the | ||
| composed of injection, storage and | gas grid – see above). | ||
| withdrawing capacity throughout the | Regulated tariffs for | ||
| storage season in fixed proportion. Such | storage capacity are | ||
| contracts can be both long term and short | expressed in €/stan- | ||
| term. | dard bundled unit per | ||
| Customers: As for transmission, the revenues | year. Tariffs for | ||
| are based on the reserved capacities. | separately purchased | ||
| storage capacity are |
182
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Revenue recognition: revenue is recognised | expressed in | ||
| over time as these services are performed | €/GWh/year. | ||
| continuously throughout the contractual term. | Injection or | ||
| withdrawal capacity | |||
| is expressed in | |||
| €/m³(n)/h/year. | |||
| Fluxys | Terminalling | Standard regulated | |
| LNG | services | LNG Terminalling | |
| Nature of performance obligations: | Agreement, mostly | ||
| combined with a | |||
| Unloading services (time slots are sold in | separate standard | ||
| advance, the so-called ‘berthing rights’), | regulated LNG | ||
| possibly combined with related services | Service Agreement | ||
| such as storage, regasification or sending | for ancillary services | ||
| out (i.e. transform the liquid gas into gas | such as storage and | ||
| that can be injected in the grid). | sending out capacity, | ||
| Loading services | etc. | ||
| Transhipment services, that occur in 2 forms: | Tariffs for (un)loading | ||
| Ship-To-Ship: unloading of LNG from one | are expressed in | ||
| LNG ship directly to another. | €/berthing right for | ||
| Ship-Storage-Ship: LNG is unloaded from an | the capacity | ||
| LNG ship, then stored in a tank at the | reservations. | ||
| terminal. It can be loaded a few days later | For storage and for | ||
| by another LNG ship. | regasification and | ||
| Customers: Customers reserve berthing | sending out services, | ||
| rights in advance, these can be both long | tariffs are expressed in | ||
| term and short term contracts. | €/MWh/day. | ||
| Revenue recognition: revenue of these | |||
| berthing rights is recognised over time | Regulated standard | ||
| based on the reserved capacity, | LNG Transhipment | ||
| independently of whether the slots are used | Service Agreement. | ||
| or not. | Tariffs are expressed in | ||
| For some additional services, such as | €/berthing right for | ||
| storage, revenue is recognised over time as | the transhipment | ||
| well, in accordance with IFRS 15.35(a). For | services. | ||
| other additional services, such as | For additional storage | ||
| regasification, revenue is recognised at a | services, the tariff is | ||
| point in time. | expressed in | ||
| €/MWh/day. |
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Note 2.13. Income taxes
Current tax is determined in accordance with local tax regulations and calculated on
the income of the parent entity, subsidiaries and joint operations.
Deferred tax liabilities and assets reflect the future taxable and deductible temporary
differences, respectively, between the book base and the tax base of assets and
liabilities.
184
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 3. Acquisitions, disposals and restructuring
Consolidation scope
The consolidation scope has evolved in the following way in 2023: creation of the
companies Fluxys hydrogen and Fluxys c-grid.
Fluxys hydrogen
Fluxys hydrogen (100%), which was created in 2023 and has as objective to become the
Belgian H2 network operator and as such support industries in their transition efforts to a
low carbon economy.
Fluxys c-grid
Fluxys c-grid (77.5%), which was created in 2023 and has as objective to become a
Belgian CO2 network operator and as such support industries in their transition efforts to a
low carbon economy.
Information on investments
| Fully consolidated entities | ||||||
| Name of | % owner- | Core | Balance | |||
| the | Registered office | Entity number | ship | business | Currency | sheet date |
| subsidiary | ||||||
| Fluxys LNG | Rue Guimard 4 | 0426 047 853 | 100.00% | LNG | € | 31 |
| SA | B - 1040 Brussels | terminalling | December | |||
| Rue de Merl 74 | Reinsurance | 31 | ||||
| Flux Re SA | L - 2146 | - | 100.00% | entity | € | December |
| Luxembourg | ||||||
| Fluxys c- | Rue Guimard 4 | 1002.472.828 | 77,50% | CO2 | € | 31 |
| grid SA | B - 1040 Bruxelles | transmission | December | |||
| Fluxys | Rue Guimard 4 | Hydrogen | 31 | |||
| hydrogen | 1002.472.927 | 100,00% | transmission | € | December | |
| SA | B - 1040 Bruxelles | |||||
| Entities accounted for using the equity method | ||||||
| Name of | Entity | % owner- | Core | Balance | ||
| the | Registered office | number | ship | business | Currency | sheet date |
| subsidiary | ||||||
| Rue de Strassen | ||||||
| Balansys | 105 | - | 50.00% | Balancing | € | 31 |
| SA | L - 2555 | operator | December | |||
| Luxembourg | ||||||
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Nature and scope of the restrictions related to the assets and liabilities of
the group
Special rights are attached to the special share of the Belgian State in Fluxys Belgium,
other than the normal rights attached to all other shares. These special rights are
exercised by the Federal Minister in charge of Energy and can be summarised as follows:
● the right to oppose to all transfers, any assignment as security or change of the
destination of strategic assets of Fluxys Belgium of which the list is set out in an annex
to the royal decree of 16 June 1994, if the Federal Minister in charge of Energy
considers that this operation prejudices the national interests in the area of energy;
● the right to appoint two representatives of the federal government with a
consultative vote in the Board of Directors and the Strategic Committee of Fluxys
Belgium;
● the right of the representatives of the federal government, within four business days,
to appeal to the Federal Minister in charge of Energy on the basis of objective, non-
discriminatory and transparent criteria, as defined in the Royal Decree of 5
December 2000, against any decision of the Board of Directors or any advice of the
strategic Committee of Fluxys Belgium (including the investment and business plan
and related budget) which they regard as contrary to the guidelines of the country’s
energy policy, including the government's objectives concerning the country's
energy supply. The appeal is suspensive. If the Federal Minister in charge of Energy
has not cancelled the decision concerned within eight business days after this
appeal, it becomes final;
● a special voting right in case of deadlock in the General meeting on a matter
concerning the objectives of the federal energy policy.
There are no other significant restrictions that may limit the ability of the group to access
or use its assets and discharge its liabilities. However, it must be noted that the assets of
Flux Re are destined to cover the risk of the company in the scope of its reinsurance
activities. The total assets in the balance sheet of Flux Re came to €177.8 million as at 31-
12-2023 compared to €164.1 million as at 2022 year-end.
Balansys SA is a company governed by Luxembourg law in which 50% of shares are held
by Fluxys Belgium SA and 50% by Creos Luxembourg SA. The objective of this company is
to integrate the Belgian and Luxembourg natural gas markets. As part of this objective,
an agreement has been signed between the shareholders that stipulates that Balansys
SA shares may not be encumbered with any guarantees or transferred, unless for the
benefit of another transmission network operator and with the agreement of the other
shareholder.
186
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
The key figures of Balansys are shown in the table below:
| Entity accounted for using the equity method | 31-12-2023 | 31-12-2022 |
| In thousands of € (*) | In thousands of € (*) | |
| Non-current assets | 0 | 0 |
| Current assets | 58,340 | 100,112 |
| Equity | 100 | 100 |
| Non-current liabilities | 26,167 | 30,060 |
| Current liabilities | 32,073 | 69,952 |
| Operating revenue | 148,698 | 461,307 |
| Operating expenses | -147,560 | -460,282 |
| Net financial result | -1,099 | -989 |
| Income tax expenses | -40 | -37 |
| Net profit/loss for the period | 0 | 0 |
| Entities accounted for by the equity method | 50 | 50 |
| Result of entities accounted for by the equity | 0 | 0 |
| method |
(*) Figures before intercompany eliminations, on a 100% basis and subject to approval of
the accounts by the governing bodies and the general assembly of the entity.
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Note 4. Income statement and operating segments
Operating segments
Fluxys Belgium group carries out activities in the following operating segments:
transmission, storage, LNG terminalling activities in Belgium and other activities.
The segment information is based on a classification into these operating segments.
Transmission activities comprise all operations subject to the Gas Act related to
transmission of gas in Belgium.
Storage activities comprise all operations subject to the Gas Act related to storage of gas
at Loenhout in Belgium.
Terminalling activities comprise all activities subject to the Gas Act related to the LNG
terminal at Zeebrugge in Belgium.
The three aforementioned activities are regulated and strictly separated. Offsetting
balances between these activities is not authorised.
The segment 'other activities' comprises other services rendered by Fluxys Belgium group
such as the operational support of the IZT and ZPT terminals
3
in Belgium and work for third
parties. On the closing date energy transition activities are also in this category due to
their limited scope.
The Fluxys Belgium group operates mainly in Belgium and does not therefore publish
information by geographical sector.
The Chief Operating Decision Maker (CODM) is the CEO.
Basis of accounting relating to transactions between operating segments
Transactions between operating segments mainly relate to capacity reservations by one
segment subject to the Gas Act with another. These transactions are charged at the
same regulatory tariffs as for external clients.
Information relating to the main customers
The group’s main customers are users of transmission and storage services and of the
Zeebrugge LNG Terminal.
3
Interconnector Zeebrugge Terminal (IZT): Fluxys Belgium rents part of its installations to IZT
under a finance lease and also provides operational support and maintenance. The
cooperation with IZT is based on contracts (no participation by Fluxys Belgium).
Zeepipe Terminal (ZPT): Fluxys Belgium contributes to the operations of ZPT on a
contractual basis (no participation).
188
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Segment income statement at 31-12-2023 | In thousands of € | |||||
| Trans- | Terminal- | Elimination | ||||
| mission | Storage | ling | Other | between | Total | |
| segments | ||||||
| Operating revenue | 397,497 | 35,557 | 148,676 | 23,910 | -12,852 | 592,788 |
| Sales and services to | 678,805 | 35,138 | 176,063 | 23,376 | 0 | 913,382 |
| external customers | ||||||
| Transactions with other | 954 | 9,884 | 1,480 | 534 | -12,852 | 0 |
| segments | ||||||
| Changes in regulatory | -282,262 | -9,465 | -28,867 | 0 | 0 | -320,594 |
| assets and liabilities | ||||||
| Sales of gas related to | ||||||
| balancing operations and | 111,563 | 3,255 | 45,943 | 0 | 0 | 160,761 |
| operational needs | ||||||
| Sales of gas related to | ||||||
| balancing of operations | 116,272 | 2,464 | 64,861 | 0 | 0 | 183,597 |
| and operational needs | ||||||
| Changes in regulatory | -4,709 | 791 | -18,918 | 0 | 0 | -22,836 |
| liabilities | ||||||
| Other operating income | 7,270 | 137 | 5,531 | 6,842 | -186 | 19,594 |
| Consumables, merchandise | -3,467 | -30 | -36 | -5,362 | 0 | -8,895 |
| and supplies used | ||||||
| Purchase of gas related to | ||||||
| balancing of operations and | -111,563 | -3,255 | -42,556 | -15 | 0 | -157,389 |
| operational needs | ||||||
| Miscellaneous goods and | -128,314 | -10,214 | -46,080 | -8,225 | 12,988 | -179,845 |
| services | ||||||
| Employee expenses | -95,931 | -7,438 | -23,883 | -8,038 | 50 | -135,240 |
| Other operating expenses | -4,792 | -607 | -529 | -37 | 0 | -5,965 |
| Depreciations | -109,068 | -8,137 | -48,205 | -1,484 | 0 | -166,894 |
| Provisions for risks and charges | -518 | -141 | -25 | -61 | 0 | -745 |
| Impairment losses | 10,970 | -54 | 460 | 24 | 0 | 11,400 |
| Profit/loss from continuing | 73,647 | 9,073 | 39,296 | 7,554 | 0 | 129,570 |
| operations | ||||||
| Change in the fair value of | 262 | 0 | 262 | |||
| financial instruments | ||||||
| Financial income | 23,308 | 2,578 | 4,619 | 7,101 | 0 | 37,606 |
| Finance costs | -42,074 | -4,654 | -18,042 | -6,007 | 0 | -70,777 |
| Profit/loss before taxes | 54,881 | 6,997 | 25,873 | 8,910 | 0 | 96,661 |
| Income tax expenses | -19,238 | |||||
| Net profit/loss for the period | 77,423 | |||||
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| Segment income statement at 31-12-2022 | In thousands of € | |||||
| Trans- | Terminal- | Elimination | ||||
| mission | Storage | ling | Others | between | Total | |
| segments | ||||||
| Operating revenue | 710,702 | 34,817 | 157,292 | 20,666 | -10,918 | 912,559 |
| Sales and services to | 866,993 | 15,882 | 297,722 | 21,033 | 0 | 1,201,630 |
| external customers | ||||||
| Transactions with other | 1,312 | 8,473 | 1,500 | -367 | -10,918 | 0 |
| segments | ||||||
| Changes in regulatory | -157,603 | 10,462 | -141,930 | 0 | 0 | -289,071 |
| assets and liabilities | ||||||
| Sales of gas related to | ||||||
| balancing operations and | 138,655 | 10,327 | 129,584 | 0 | 0 | 278,566 |
| operational needs | ||||||
| Sales of gas related to | ||||||
| balancing of operations | 273,348 | 8,673 | 163,699 | 0 | 0 | 445,720 |
| and operational needs | ||||||
| Changes in regulatory | -134,693 | 1,654 | -34,115 | 0 | 0 | -167,154 |
| liabilities | ||||||
| Other operating income | 5,426 | 129 | 4,736 | 5,999 | -78 | 16,212 |
| Consumables, merchandise | -1,144 | 1 | -34 | -4,405 | 0 | -5,582 |
| and supplies used | ||||||
| Purchase of gas related to | ||||||
| balancing of operations and | -139,057 | -9,924 | -126,197 | 0 | 0 | -275,178 |
| operational needs | ||||||
| Miscellaneous goods and | -419,316 | -9,600 | -40,577 | -6,946 | 10,918 | -465,521 |
| services | ||||||
| Employee expenses | -96,731 | -7,216 | -23,360 | -5,702 | 78 | -132,931 |
| Other operating expenses | -3,944 | -588 | -374 | -52 | 0 | -4,958 |
| Depreciations | -111,009 | -8,361 | -47,656 | -1,025 | 0 | -168,051 |
| Provisions for risks and charges | 3,970 | -15 | 99 | 2,938 | 1 | 6,993 |
| Impairment losses | -14,173 | 0 | -647 | 16 | 0 | -14,804 |
| Profit/loss from continuing | 73,379 | 9,570 | 52,866 | 11,489 | 1 | 147,305 |
| operations | ||||||
| Change in the fair value of | 0 | 0 | 0 | -1,298 | 0 | -1,298 |
| financial instruments | ||||||
| Financial income | 2,759 | 306 | 567 | 957 | 0 | 4,589 |
| Finance costs | -26,131 | -2,894 | -9,788 | -1,992 | 0 | -40,805 |
| Profit/loss before taxes | 50,007 | 6,982 | 43,645 | 9,156 | 1 | 109,791 |
| Income tax expenses | -26,063 | |||||
| Net profit/loss for the period | 83,728 | |||||
190
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 4.1. Operating revenue
Analysis of operating revenue by business segment:
| Operating revenue | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Transmission in Belgium | 4.1.1 | 396,543 | 709,390 | -312,847 |
| Storage in Belgium | 4.1.1 | 25,673 | 26,344 | -671 |
| Terminalling in Belgium | 4.1.1 | 147,196 | 155,792 | -8,596 |
| Other operating | 4.1.2 | 23,376 | 21,033 | 2,343 |
| income | ||||
| Total | 592,788 | 912,559 | -319,771 | |
Operating revenue in the 2023 financial year amounted to €592,788 thousand, which
represents a decrease of €319,771 thousand as compared with the previous financial
year.
4.1.1 Transmission, storage and terminalling services in Belgium are
subject to the Gas Act.
Revenue from these services aims to ensure an authorised return on capital invested and
to cover the operating expenses related to these services, while integrating the
productivity efforts to be accomplished by the network operator, as well as permitted
depreciation.
The bulk of the decrease in sales and regulated services relates to transmission services
(€312,847 thousand). This decrease is mainly due to the accounting settlement of the
exceptional solidarity contribution of €300 million in 2022. The income invoiced in 2023
was also down compared to the exceptional level in 2022. The infrastructure has
continued to be chiefly used to support the security of supply of neighbouring countries
in the wake of the energy crisis.
Invoiced income from storage services is up in 2023 following the sale of all the capacity,
but this increase is offset by the allocation to regulatory liabilities in accordance with the
tariff proposal.
As for terminalling revenue, 2023 is characterised by lower auction sales of spot slots. This
evolution of invoiced revenues in 2023 compared to 2022 is largely offset by a lower
allocation to regulatory liabilities.
4.1.2 Other operating income
Other operating revenue relates mainly to work and services for third parties and the
provision of facilities.
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Note 4.2. Operating expenses
| Operating expenses excluding depreciations, | In thousands of € | |||
| impairment losses and provisions | ||||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Consumables, merchandise and | 4.2.1 | -8,895 | -5,582 | -3,313 |
| supplies used | ||||
| Miscellaneous goods and services | 4.2.2 | -179,845 | -465,521 | 285,676 |
| Employee expenses | 4.2.3 | -135,240 | -132,931 | -2,309 |
| Other operating expenses | 4.2.4 | -5,965 | -4,958 | -1,007 |
| Total operating expenses | -329,945 | -608,992 | 279,047 | |
4.2.1. Consumables, merchandise and supplies used
This item mainly includes costs for transport material taken out of inventory for
maintenance and repair projects as well as costs for work carried out on behalf of third
parties.
192
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
4.2.2. Miscellaneous goods and services
Miscellaneous goods and services are mainly composed of:
| 31-12-2023 | 31-12-2022 | Change | |
| Purchase of equipment | - 10,575 | - 6,324 | - 4,251 |
| Rent and rental charges (1) | - 9,492 | - 7,623 | - 1,869 |
| Maintenance and repair expenses | - 27,785 | - 24,601 | - 3,184 |
| Goods and services supplied to the group | - 20,870 | - 19,376 | - 1,494 |
| Third-party remuneration | - 54,705 | - 354,502 | 299,797 |
| Royalties and contributions | - 41,730 | - 40,083 | - 1,647 |
| Non-personnel related insurance costs | - 7,041 | - 6,451 | - 590 |
| Other miscellaneous goods and services | - 7,647 | - 6,561 | - 1,086 |
| Total | -179,845 | - 465,521 | 285,676 |
(1) Amounts that relate mainly to services that do not meet the definition of a lease under IFRS 16.
The decrease in this item ensues from the exceptional solidarity contribution of €300
million that the Belgian State established for the operator of the natural gas transmission
network to support the Belgian population during the energy crisis in 2022. Outside of this
contribution, third-party remuneration to the group is stable compared to 2022.
This movement, apart from the solidarity contribution, is slightly higher than the reference
framework for the 2020-2023 regulatory period.
The increase in equipment purchases can chiefly be explained by purchases of spare
parts and new safety clothing.
Maintenance and repair costs increased €3,184 thousand, which is mainly due to the
maintenance of the transmission network (pigging and adaptation works) and the storage
facility at Loenhout.
The increase in goods and services supplied to the group reflects the higher cost of
services from Fluxys SA.
As for the €1,647 thousand increase in royalties and contribution compared to 2022, this is
chiefly explained by the increase in costs for the use of the Zeepipe facilities and for the
capacity reserved from adjacent TSOs (both are pass-through costs), the increase in the
cost of surveillance of the different sites and the costs of external suppliers, partly offset by
lower levels of compensation paid by Flux Re to Fluxys SA.
The increase in rent and rent expense comes from the higher prices of software and the
price of lease vehicles.
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4.2.2.1 Auditor remuneration
Other miscellaneous goods and services (see note 4.2.2.) include the total remuneration
paid to the auditor by Fluxys Belgium NV and its consolidated subsidiaries. These fees are
presented below.
| Auditor remuneration | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Audit fees | -191 | -179 | -12 |
| Other non-audit services | -32 | -38 | 6 |
| Total remuneration | -223 | -217 | -6 |
The amount of other (non-audit) services provided by the statutory auditor and persons
professionally related to him are in line with article 3:64 and 65 of the Code of companies
and associates and approved by the Audit Committee in advance. They mainly relate to
ad-hoc and limited assurance attestations.
194
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
4.2.3. Employee expenses
Employee expenses have increased €2,309 thousand as compared with 2022, as a result
of an increase in the workforce and of indexation.
The average headcount of the Group is up, from 914 in 2022 to 957 in 2023. Expressed in
FTE (full-time equivalents), these figures convert to 925.0 in 2023 compared to 883.4 in
2022.
| Workforce | ||||
| Financial year | Preceding financial year | |||
| Total number | Total in FTE | Total number | Total in FTE | |
| of staff | of staff | |||
| Average number of employees | 957 | 925.0 | 914 | 883.4 |
| Fluxys Belgium | 908 | 878.2 | 865 | 836.1 |
| Executives | 338 | 329.5 | 308 | 300.2 |
| Employees | 571 | 548.7 | 557 | 535.9 |
| Fluxys LNG | 47 | 46.3 | 48 | 46.8 |
| Executives | 3 | 2.5 | 3 | 2.9 |
| Employees | 45 | 43.8 | 45 | 43.9 |
| Flux Re | 1 | 0.5 | 1 | 0.5 |
| Headcount at balance sheet | 968 | 937.1 | 939 | 908.6 |
| date | ||||
| Fluxys Belgium | 920 | 890.6 | 891 | 862.0 |
| Executives | 344 | 335.5 | 321 | 313.1 |
| Employees | 576 | 555.2 | 570 | 548.9 |
| Fluxys LNG | 47 | 46.0 | 47 | 46.2 |
| Executives | 3 | 2.9 | 3 | 2.9 |
| Employees | 44 | 43.1 | 44 | 43.3 |
| Flux Re | 1 | 0.5 | 1 | 0.5 |
4.2.4. Other operating expenses
Other operating expenses include property taxes, local taxes, and losses on disposals or
retirements of property, plant and equipment.
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4.2.5. Depreciations, Impairment losses and provisions
| Depreciations, impairment losses and provisions | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Depreciations | 4.2.5.1 | -166,894 | -168,051 | 1,157 |
| Intangible assets | -15,382 | -12,385 | -2,997 | |
| Property, plant and equipment | -146,760 | -150,915 | 4,155 | |
| Right of Use Assets | -4,752 | -4,751 | -1 | |
| Provisions for risks and charges | 4.2.5.2 | -745 | 6,993 | -7,738 |
| Impairment losses | 4.2.5.3 | 11,400 | -14,804 | 26,204 |
| Intangible assets | -54 | 0 | -54 | |
| Inventories | 11,431 | -14,819 | 26,250 | |
| Trade receivables | 23 | 15 | 8 | |
| Total depreciations, impairment | -156,239 | -175,862 | 19,623 | |
| losses and provisions | ||||
4.2.5.1 Depreciations
Depreciation charges on property, plant and equipment over the period are down by
€4.155 thousand as compared with the previous financial year because the depreciation
for certain historic assets came to an end in the previous financial year.
However, depreciation charges on intangible assets over the period are up by €2,997
thousand as compared with the previous financial year following the higher level of
investments in intangible assets over these past few years.
4.2.5.2 Provisions for risks and charges
There were no major changes in provisions for risks and charges in 2023.
4.2.5.3 Impairment losses
Thanks to the evolution in gas prices, the impairment losses on gas stocks recorded in
2022 were mostly reversed in 2023.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 4.3. Financial income
| Financial income | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Dividends from unconsolidated | 0 | 0 | 0 | |
| entities | ||||
| Financial income from leasing | 4.3.1 | 39 | 56 | -17 |
| contracts | ||||
| Interest income on investments and | 4.3.2 | 32,487 | 3,970 | 28,517 |
| cash equivalents | ||||
| Other interest income | 4.3.2 | 4,202 | 83 | 4,119 |
| Unwinding of discounts on provisions | 4.4.2 | 0 | 0 | 0 |
| Other financial income | 878 | 480 | 398 | |
| Total | 37,606 | 4,589 | 33,017 | |
4.3.1. Financial income from leasing contracts
Financial income from leasing contracts relates to the Interconnector Zeebrugge
Terminal (IZT) facilities.
4.3.2. Interest on investments and cash equivalents
Interest on investments and cash equivalents mainly come from investments recognised
at depreciated cost in accordance with IFRS 9. The amount of this interest is up as
compared with 2022, following the increase in interest rates. This has a limited impact on
profit/loss because of the regulatory framework.
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Note 4.4. Finance costs
| Finance costs | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Borrowing interest costs | 4.4.1 | -65,909 | -39,292 | -26,617 |
| Unwinding of discounts on | 4.4.2 | -2,557 | -383 | -2,174 |
| provisions | ||||
| Interest charges on leasing | -827 | -890 | 63 | |
| contracts | ||||
| Other finance costs | -1,484 | -240 | -1,244 | |
| Total | -70,777 | -40,805 | -29,972 | |
4.4.1. Borrowing interest costs
Borrowing interest costs primarily include interest on the loans from the European
Investment Bank and Fluxys, on bonds and on regulatory liabilities. The increase observed
in 2023 can be explained by the higher level of regulatory liabilities and the increase in
interest rates. This has a limited impact on profit/loss because of the regulatory
framework.
4.4.2. Unwinding of discounts on provisions
This item almost exclusively concerns employee benefits that are recognised and valued
in accordance with IAS 19 and includes, apart from the unwinding of discounts on
provisions, returns from associated assets, and actuarial gains and losses recognised in
profit/loss. The change is mainly associated with an decrease in the discount rates at
year-end.
198
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 4.5. Income tax expenses
Income tax expense is analysed as follows:
| Income tax expenses | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Current tax | 4.5.1 | -28,235 | -35,730 | 7,495 |
| Deferred tax | 4.5.2 | 8,998 | 9,667 | -669 |
| Total | 4.5.3 | -19,237 | -26,063 | 6,826 |
Income tax expense fell by k€ 6,826 compared with the previous year. This change is
mainly due to the following factors:
● a decrease in earnings before tax;
● an increase in the amount of the deduction for revenues from innovation (from
€9,203 thousand estimated in 2023 to €5,400 thousand estimated in 2022). This
increase was partly compensated by the deduction for energy efficiency
investments obtained by Fluxys LNG. The amount of this deduction for the year
2023 is estimated at €3,362 thousand.
Income tax expenses include both current and deferred taxes, which are detailed
separately below.
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| 4.5.1. Current tax | In thousands of € | ||
| 31-12-2022 | 31-12-2021 | Change | |
| Income taxes on the result of the current | -31,665 | -36,052 | 4,387 |
| period | |||
| Taxes and withholding taxes due or | -31,100 | -35,066 | 3,966 |
| paid | |||
| Excess of payment of taxes and | 1,676 | -1,213 | 2,889 |
| withholding taxes (included in assets) | |||
| Estimated additional taxes (included in | -2,241 | 227 | -2,468 |
| liabilities) | |||
| Adjustments to previous years’ current | 3,430 | 322 | 3,108 |
| taxes | |||
| Total | -28,235 | -35,730 | 7,495 |
Current tax decreased by €7,495 thousand in 2023.
| 4.5.2 Deferred tax | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Relating to origination or reversal of | 8,998 | 9,667 | -669 |
| temporary differences | |||
| Differences arising from the valuation of | 9,488 | 11,378 | -1,890 |
| property, plant and equipment | |||
| Changes in provisions | -1,113 | 263 | -1,376 |
| Other changes | 623 | -1,974 | 2,597 |
| Relating to tax rate changes or to new taxes | 0 | 0 | 0 |
| Relating to changes in accounting policies | 0 | 0 | 0 |
| and errors | |||
| Relating to changes in fiscal status of entity or | 0 | 0 | 0 |
| shareholders | |||
| Total | 8,998 | 9,667 | -669 |
Deferred tax is primarily influenced by the difference between the book value and the
tax base of property, plant and equipment.
The deferred tax profit decreased by €669 thousand compared to 2022. This decrease
can primarily be explained by adjustments of the tax base for financial assets.
200
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| 4.5.3. Reconciliation of expected income tax rate and effective | In thousands of € | ||
| average income tax rate | |||
| 31-12-2023 | 31-12-2022 | Change | |
| Income tax as per applicable tax rate – | -24,165 | -27,448 | 3,283 |
| Financial year | |||
| Profit/loss before taxes | 96,661 | 109,791 | -13,130 |
| Applicable tax rate | 25,00% | 25,00% | 0% |
| Elements that justify transition to the effective | 1,497 | 1,063 | 434 |
| average tax rate | |||
| Income tax rate differences between | 16 | -58 | 74 |
| jurisdictions | |||
| Changes in tax rates | 0 | 0 | 0 |
| Tax-exempt income | 0 | 0 | 0 |
| Non-deductible expenses | -1,425 | -1,396 | -29 |
| Taxable dividend income | 0 | 0 | 0 |
| Deductible notional interest cost | 0 | 0 | 0 |
| Other (1) | 2,906 | 2,517 | 389 |
| Income tax as per effective average tax rate – | -22,668 | -26,385 | 3,717 |
| Financial year | |||
| Profit/loss before taxes | 96,661 | 109,791 | -13,130 |
| Average effective tax rate | 23,45% | 24,03% | -0,58% |
| Taxation of tax-free reserves | 0 | 0 | 0 |
| Adjustments to previous years’ current taxes (1) | 3,430 | 322 | 3,108 |
| Total income tax expense | -19,238 | -26,063 | 6,825 |
(1) In 2023 and 2022, Fluxys LNG obtained the deduction for energy efficiency investments. This
tax advantage is incorporated into the regulated tariffs.
The average effective tax rate for 2023 amounted to 23.45% compared with 24.03% the
previous year.
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Note 4.6. Net profit/loss for the period
| Net profit/loss for the period | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Non-controlling interests | 0 | 0 | 0 |
| Group share | 77,423 | 83,728 | -6,305 |
| Total profit/loss for the period | 77,423 | 83,728 | -6,305 |
The consolidated net profit for the financial year amounted to €77,423 thousand, a
decrease of €6,305 thousand compared with 2022.
202
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 4.7. Earnings per share
| In thousands of € | 31-12-2023 | 31-12-2022 |
| Net profit/loss from continuing operations | ||
| attributable to the parent company’s | 77,423 | 83,728 |
| shareholders | ||
| Net profit/loss | 77,423 | 83,728 |
| Impact of dilutive instruments | 0 | 0 |
| Diluted net profit/loss from continuing operations | ||
| attributable to the parent company’s | 77,423 | 83,728 |
| shareholders | ||
| Net profit/loss from discontinued operations | ||
| attributable to the parent company’s | 0 | 0 |
| shareholders | ||
| Net profit/loss | 0 | 0 |
| Impact of dilutive instruments | 0 | 0 |
| Diluted net profit/loss from discontinued | ||
| operations attributable to the parent company’s | 0 | 0 |
| shareholders | ||
| Net profit/loss attributable to the parent | 77,423 | 83,728 |
| company’s shareholders | ||
| Net profit/loss | 77,423 | 83,728 |
| Impact of dilutive instruments | 0 | 0 |
| Diluted net profit/loss attributable to the parent | 77,423 | 83,728 |
| company’s shareholders |
| Denominator (in units) | 31-12-2023 | 31-12-2022 |
| Average number of outstanding shares | 70,263,501 | 70,263,501 |
| Impact of dilutive instruments | 0 | 0 |
| Diluted average number of outstanding shares | 70,263,501 | 70,263,501 |
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| Earnings per share (in euros) | 31-12-2023 | 31-12-2022 |
| Basic earnings per share from continuing operations attributable | 1.1019 | 1.1916 |
| to the parent company’s shareholders | ||
| Diluted basic earnings per share from continuing operations | 1.1019 | 1.1916 |
| attributable to the parent company’s shareholders | ||
| Basic earnings per share from discontinued operations | 0.0000 | 0.0000 |
| attributable to the parent company’s shareholders | ||
| Diluted basic earnings per share from discontinued operations | 0.0000 | 0.0000 |
| attributable to the parent company’s shareholders | ||
| Basic earnings per share | 1.1019 | 1.1916 |
| attributable to the parent company’s shareholders | ||
| Diluted basic earnings per share | 1.1019 | 1.1916 |
| attributable to the parent company’s shareholders |
204
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 5. Segment balance sheet
| Segment balance sheet at 31-12-2023 | In thousands of € | |||||
| Trans- | Storage | Terminal- | Other | Unallo- | Total | |
| mission | ling | cated | ||||
| Property, plant and | 1,168,762 | 126,364 | 577,796 | 364 | 0 | 1,873,286 |
| equipment | ||||||
| Intangible assets | 24,218 | 1,571 | 1,449 | 0 | 0 | 27,238 |
| Right of use assets | 8,246 | 310 | 16,406 | 3,618 | 0 | 28,580 |
| Other financial assets | 100 | 0 | 0 | 111,110 | 0 | 111,210 |
| Inventories | 43,794 | 2,461 | 732 | 3,456 | 0 | 50,443 |
| Lease receivables | 0 | 0 | 0 | 1,644 | 0 | 1,644 |
| Net trade receivables | 45,020 | 3,713 | 9,671 | 22,948 | 0 | 81,352 |
| Other assets4 | 1,184,863 | 1,184,863 | ||||
| 3,358,616 | ||||||
| Interest-bearing | 28,626 | 67,510 | 205,481 | 824,030 | 0 | 1,125,647 |
| liabilities | ||||||
| Other financial liabilities | 0 | 0 | 22 | 3,988 | 0 | 4,010 |
| Other liabilities | 840,778 | 28,700 | 389,359 | 0 | 356,709 | 1,615,546 |
| 2,745,203 | ||||||
| Equity | 613,413 | |||||
| 3,358,616 | ||||||
| Investments over the | 106,289 | 9,124 | 50,434 | 1,807 | 0 | 167,654 |
| period in PP&E | ||||||
| Investments over the | ||||||
| period in intangible | 17,043 | 1,619 | 1,157 | 0 | 0 | 19,819 |
| assets | ||||||
4
Mainly cash and cash equivalents
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| Segment balance sheet at 31-12-2022 | In thousands of € | |||||
| Trans- | Storage | Terminal- | Other | Unallo- | Total | |
| mission | ling | cated | ||||
| Property, plant and | 1,156,981 | 125,365 | 572,946 | 83 | 0 | 1,855,375 |
| equipment | ||||||
| Intangible assets | 22,009 | 10 | 845 | 0 | 0 | 22,864 |
| Right of use assets | 7,724 | 318 | 18,932 | 3,046 | 0 | 30,020 |
| Other financial assets | 95 | 0 | 0 | 111,076 | 0 | 111,171 |
| Inventories | 54,453 | 3,100 | 1,211 | 3,892 | 0 | 62,656 |
| Lease receivables | 0 | 0 | 0 | 2,094 | 0 | 2,094 |
| Net trade receivables | 110,249 | 1,071 | 6,633 | 33,852 | 0 | 151,805 |
| Other assets | 0 | 0 | 0 | 0 | 1,170,585 | 1,170,585 |
| 3,406,570 | ||||||
| Interest-bearing liabilities | 368,097 | 61,020 | 232,249 | 510,675 | 0 | 1,172,041 |
| Other financial liabilities | 0 | 0 | 20 | 3,555 | 0 | 3,575 |
| Other liabilities | 563,230 | 41,595 | 330,468 | 0 | 652,044 | 1,587,337 |
| 2,762,953 | ||||||
| Equity | 643,617 | |||||
| 3,406,570 | ||||||
| Investments over the period | 36,814 | 871 | 67,736 | 104 | 0 | 105,525 |
| in PP&E | ||||||
| Investments over the period | ||||||
| in intangible assets | 11,294 | 0 | 71 | 0 | 0 | 11,365 |
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 5.1. Property, plant and equipment
| Movements in property, plant and equipment | ||||
| Gross book value | Land | Buildings | Gas | Gas storage * |
| transmission* | ||||
| At 31-12-2021 | 49,401 | 161,093 | 3,471,322 | 386,692 |
| Investments | 186 | 166 | 26,325 | 312 |
| Grants received | 0 | 0 | 0 | 0 |
| Disposals and retirements | -2 | 0 | -6,725 | -5 |
| Internal transfers | 0 | 0 | 15,204 | 121 |
| Changes in the | ||||
| consolidation scope and | 0 | 0 | 0 | 0 |
| assets held for sale | ||||
| Translation adjustments | 0 | 0 | 0 | 0 |
| At 31-12-2022 | 49,585 | 161,259 | 3,506,126 | 387,120 |
| Investments | 218 | 288 | 44,238 | 966 |
| Grants received | 0 | 0 | 0 | 0 |
| Disposals and retirements | -1,585 | -253 | -14,728 | 0 |
| Internal transfers | 0 | 0 | 1,375 | 0 |
| Changes in the | ||||
| consolidation scope and | 0 | 0 | 0 | 0 |
| assets held for sale | ||||
| Translation adjustments | 0 | 0 | 0 | 0 |
| At 31-12-2023 | 48,218 | 161,294 | 3,537,011 | 388,086 |
*subject to the Gas Act
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| In thousands of € | ||||
| Other facilities | Furniture, | Assets under | ||
| LNG Terminal* | and machinery | equipment & | construction & | Total |
| vehicles | instalments paid | |||
| 1,459,802 | 43,511 | 58,152 | 28,795 | 5,658,768 |
| 1,880 | 0 | 8,450 | 68,206 | 105,525 |
| 0 | 0 | 0 | 0 | 0 |
| -290 | 0 | -8,240 | 0 | -15,262 |
| 0 | 0 | 0 | -15,325 | 0 |
| 0 | 0 | -0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 1,461,392 | 43,511 | 58,362 | 81,676 | 5,749,031 |
| 39,712 | 0 | 14,294 | 67,938 | 167,654 |
| 0 | 0 | 0 | 0 | 0 |
| -491 | -26,252 | -9,416 | 0 | -52,725 |
| 0 | 0 | 0 | -1,375 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 1,500,613 | 17,259 | 63,240 | 148,239 | 5,863,960 |
208
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Movements in property, plant and equipment | ||||
| Depreciation and impairment losses | Land | Buildings | Gas | Gas |
| transmission* | storage* | |||
| As at 31-12-2021 | 0 | -102,457 | -2,377,641 | -260,747 |
| Depreciation | 0 | -3,988 | -89,701 | -8,137 |
| Disposals and retirements | 0 | 0 | 5,888 | 1 |
| Internal transfers | 0 | 0 | 0 | 0 |
| Changes in the consolidation scope | 0 | 0 | 0 | 0 |
| and assets held for sale | ||||
| Translation adjustments | 0 | 0 | 0 | 0 |
| As at 31-12-2022 | 0 | -106,445 | -2,461,454 | -268,883 |
| Depreciation | 0 | -2,983 | -85,305 | -7,912 |
| Disposals and retirements | 0 | 253 | 13,852 | 0 |
| Internal transfers | 0 | 0 | 0 | 0 |
| Changes in the consolidation scope | 0 | 0 | 0 | 0 |
| and assets held for sale | ||||
| Translation adjustments | 0 | 0 | 0 | 0 |
| As at 31-12-2023 | 0 | -109,175 | -2,532,907 | -276,795 |
| Net book values as at 31-12-2023 | 48,218 | 52,119 | 1,004,104 | 111,291 |
| Net book values as at 31-12-2022 | 49,585 | 54,814 | 1,044,672 | 118,237 |
*subject to the Gas Act
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| In thousands of € | ||||
| Other facilities | Furniture, | Assets under | ||
| LNG Terminal* | and machinery | equipment & | construction & | Total |
| vehicles | instalments paid | |||
| -932,786 | -43,266 | -39,834 | 0 | -3,756,731 |
| -43,208 | 0 | -5,881 | 0 | -150,915 |
| 8 | 0 | 8,093 | 0 | 13,990 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| -975,986 | -43,266 | -37,622 | 0 | -3,893,656 |
| -43,687 | 0 | -6,873 | 0 | -146,760 |
| 34 | 26,252 | 9,351 | 0 | 49,742 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| -1,019,639 | -17,014 | -35,144 | 0 | -3,990,674 |
| 480,974 | 245 | 28,096 | 148,239 | 1,873,286 |
| 485,406 | 245 | 20,740 | 81,676 | 1,855,375 |
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Movements in property, plant and equipment | ||||
| Land | Buildings | Gas | Gas | |
| transmission* | storage* | |||
| Net book values as at 31-12-2023, | 48,218 | 52,119 | 977,852 | 111,291 |
| of which: | ||||
| At cost | 48,218 | 52,119 | 977,852 | 111,291 |
| At revaluation | 0 | 0 | 0 | 0 |
| Supplementary information | 0 | 0 | 0 | 0 |
| Net book value of assets | 110 | 0 | 0 | 0 |
| temporarily retired from active use | ||||
*subject to the Gas Act
Property, plant and equipment mainly comprises the group’s transmission, storage
(Loenhout) and LNG terminalling (Zeebrugge) facilities.
In 2023, Fluxys Belgium group made property, plant and equipment investments in
infrastructure of €163,491 thousand. Furthermore, Fluxys Belgium group made €4,163
thousand IT investments in the network infrastructure as well as in the computers and
devices inventory.
Within those investments, €50,434 thousand was allocated to LNG infrastructure projects
(mainly for the construction of 3 new Open Rack Vaporizers and 3 new truck loading
bays in the Zeebrugge LNG Terminal) and €103,753 thousand to projects linked to
transmission activity, the main investment of which being the Desteldonk-Opwijk pipeline.
In 2023 no costs for loans were activated on construction investments.
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| In thousands of € | ||||
| Other facilities | Furniture, | Assets under | ||
| LNG Terminal* | and machinery | equipment & | construction & | Total |
| vehicles | instalments paid | |||
| 480,974 | 26,497 | 28,096 | 148,239 | 1,873,286 |
| 480,974 | 26,497 | 28,096 | 148,239 | 1,873,286 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 110 |
The depreciation charge for the period amounts to €146,760 thousand and reflects the
rhythm at which the group expects to consume the economic benefits linked to those
property, plant and equipment.
The assets that are used within the regulated market are depreciated over their useful
life, as stated in point 6 of the accounting principles (Note 2), without taking into account
a residual value, given the specificity of the sector’s activities.
Other property, plant and equipment is depreciated over its useful life as estimated by
the group, taking into account actual and potential contracts, and considering
reasonable market assumptions, based on the principle of matching of revenues and
costs. Given the specific nature of the activities concerned, the residual value, if any, of
the facilities in question has been ignored.
At the balance sheet date, the group does not hold property, plant and equipment
assets which have been pledged as security against liabilities.
At the end of the financial year, the group has identified no signal or event that would
lead any item of property, plant and equipment to be impaired.
This assessment takes into account the regulatory framework in which the Group
operates and of the present energy transition in which the Group plays an active role.
This refers, for example, to the conversion of our low-calorific gas network to high-calorific
gas, the transport of molecules other than natural gas, and the efforts required to
combat climate change. All the investments and regulated assets of the Group ensue in
a right to a regulated authorised rate of return for their lifespan (see also accounting
principles in Note 2.6).
212
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 5.2. Intangible assets
| Movements in the book value of intangible assets | In thousands of € | |||
| ‘Client | ||||
| Gross book value | Software | portfolios’ | CO2Emission | Total |
| assets | rights | |||
| As at 31-12-2021 | 22,809 | 52,800 | 0 | 75,609 |
| Investments | 11,365 | 0 | 0 | 11,365 |
| Disposals and retirements | -3,627 | 0 | 0 | -3,627 |
| Translation adjustments | 0 | 0 | 0 | 0 |
| Changes in the consolidation | 0 | 0 | 0 | 0 |
| scope | ||||
| Other | 0 | 0 | 0 | 0 |
| As at 31-12-2022 | 30,547 | 52,800 | 0 | 83,347 |
| Investments | 18,221 | 0 | 1,599 | 19,820 |
| Disposals and retirements | -2,877 | 0 | 0 | -2,877 |
| Translation adjustments | 0 | 0 | 0 | 0 |
| Changes in the consolidation | 0 | 0 | 0 | 0 |
| scope | ||||
| Other | 0 | 0 | 0 | 0 |
| As at 31-12-2023 | 45,891 | 52,800 | 1,599 | 100,290 |
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| Movements in the book value of intangible assets | In thousands of € | |||
| Depreciation and impairment | ‘Client | |||
| Software | portfolios’ | CO2 Emission | Total | |
| losses | assets | rights | ||
| As at 31-12-2021 | -11,821 | -39,897 | 0 | -51,718 |
| Depreciation | -5,934 | -6,451 | 0 | -12,385 |
| Disposals and retirements | 3,619 | 0 | 0 | 3,619 |
| Translation adjustments | 0 | 0 | 0 | 0 |
| Changes in the consolidation | 0 | 0 | 0 | 0 |
| scope | ||||
| Other | 0 | 0 | 0 | 0 |
| As at 31-12-2022 | -14,136 | -46,348 | 0 | -60,484 |
| Depreciation | -8,930 | -6,452 | 0 | -15,382 |
| Impairment losses | 0 | 0 | -54 | -54 |
| Disposals and retirements | 2,868 | 0 | 0 | 2,868 |
| Translation adjustments | 0 | 0 | 0 | 0 |
| Changes in the consolidation | 0 | 0 | 0 | 0 |
| scope | ||||
| Other | 0 | 0 | 0 | 0 |
| As at 31-12-2023 | -20,198 | -52,800 | -54 | -73,052 |
214
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Movements in the book value of intangible assets | In thousands of € | |||
| Software | ‘Client portfolios’ | CO2Emission | Total | |
| assets | rights | |||
| Net book values as | 25,693 | 0 | 1,545 | 27,238 |
| at 31-12-2023 | ||||
| Net book values as | 16,411 | 6,453 | 0 | 22,864 |
| at 31-12-2022 | ||||
Intangible assets include the net book value of software, the portfolio of ‘Hub’ clients and
CO
2
emission rights.
The software included in intangible assets is investment software developed or
purchased by the group. This software is depreciated over 5 years on a straight-line basis.
Major investments during the financial year concern software developed in relation to
gas flow and asset management and related administrative tools.
In 2015, Fluxys Belgium acquired all of Huberator’s business activities for €52.8 million. This
intangible asset was last amortised in 2023 (on a straight-line basis).
Certain gas transmission facilities in Belgium are included in the scheme for greenhouse
gas emission allowance trading. Accordingly, Fluxys Belgium group was given free
emission rights for 2023 amounting to 23,325 tonnes of CO
2
for the compression, storage
and terminalling activity sites. In accordance with the accounting policies stated in Note
2, the unused emission rights have been recognised at nil value in intangible assets.
In 2023, the Fluxys Belgium group bought emission rights to cover its future needs, mainly
for its storage services. The emission rights bought are recognised at the purchase price
as intangible assets. They are then measured at fair value up to the purchase price. If the
fair value is lower than the carrying amount on the balance sheet date, the emission
rights are impaired.
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Note 5.3. Right of use assets
The right of use assets are mainly linked to concession rights for land on which gas
transmission and terminalling facilities (Zeebrugge) have been built.
These contracts don’t have significant termination or extension options. The rent is not
variable, except for some contracts that have a clause for yearly indexation. The impact
thereof is not material.
| Right of use assets | In thousands of € | |||
| Land & | Facilities | Cars | Total | |
| Buildings | ||||
| As at 31-12-2021 | 27,021 | 2,724 | 3,782 | 33,527 |
| Additional rights | 0 | 0 | 1,351 | 1,351 |
| Depreciation and impairment losses | -2,405 | -763 | -1,583 | -4,751 |
| Disposals | 0 | 0 | -107 | -107 |
| Other changes | 0 | 0 | 0 | 0 |
| As at 31-12-2022 | 24,616 | 1,961 | 3,443 | 30,020 |
| Additional rights | 0 | 0 | 3,401 | 3,401 |
| Depreciation and impairment losses | -2,406 | -671 | -1,675 | -4,752 |
| Disposals | 0 | 0 | -89 | -89 |
| Other changes | 0 | 0 | 0 | 0 |
| As at 31-12-2023 | 22,210 | 1,290 | 5,080 | 28,580 |
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 5.4. Other financial assets
| Other financial assets | In thousands of € | ||
| Notes | 31-12-2023 | 31-12-2022 | |
| Shares at cost | 24 | 24 | |
| Investment securities at fair value through profit | 5.4.1 | 0 | 0 |
| or loss | |||
| Investment securities at amortised cost | 5.4.1 | 66,016 | 53,481 |
| Other investments at amortised cost | 5.4.1 | 41,083 | 54,019 |
| Financial instruments at fair value through profit | 4,011 | 3,576 | |
| or loss | |||
| Other financial assets at cost | 76 | 71 | |
| Total | 111,210 | 111,171 | |
5.4.1. These items include cash investments with a maturity longer than one year. The
investment securities at amortised cost are bonds, while other investments are amortised
cost are mainly term deposits. They are mainly from Flux Re of which the cash is destined
to cover the risk of the entity in the scope of its reinsurance business. The maturity of these
investments is between 2025 and 2033.
The assets held by Flux Re are significantly higher than the minimum capital requirements
under Solvency II (€16.8 million).
Note 5.5. Other non-current assets
| Other non-current assets | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Plan asset surpluses ‘IAS 19 | 5.14 | 11,199 | 26,461 | -15,262 |
| Employee benefits’ | ||||
| Total | 11,199 | 26,461 | -15,262 | |
The value of the plan asset surpluses covering the provision for employee benefits
decreased in 2023 due to an increase in the value of bonds and a slight decrease in the
value of assets.
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Note 5.6. Inventories
| Book value of inventories | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Supplies | 31,558 | 24,803 | 6,755 |
| Gross book value | 35,260 | 28,678 | 6,582 |
| Impairment losses | -3,702 | -3,875 | 173 |
| Goods held for resale (gas) | 18,641 | 36,981 | -18,340 |
| Gross book value | 25,097 | 54,695 | -29,598 |
| Impairment losses | -6,456 | -17,714 | 11,258 |
| Work in progress | 244 | 872 | -628 |
| Gross book value | 244 | 872 | -628 |
| Impairment losses | 0 | 0 | 0 |
| Total | 50,443 | 62,656 | -12,213 |
Inventories of materials connected to the transmission network are at their normal levels.
The decrease in the gross book value of goods held for resale can primarily be explained
by a fall in average gas prices. For changes in impairment of gas inventories, see 4.2.5.3.
| Impact of movements on net profit/loss | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Inventories – purchased or used | -23,644 | 38,433 | -62,077 |
| Impairment losses | 11,431 | -14,819 | 26,250 |
| Total | -12,213 | 23,614 | -35,827 |
The movements of work in progress are included in other operating income in the income
statement. The other movements of inventories are included in purchase of gas related
to balancing of operations and operational needs.
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Note 5.7. Trade and other receivables
| Trade and other receivables | In thousands of € | |||
| Note | 31-12-2023 | 31-12-2022 | Change | |
| Gross trade receivables | 82,903 | 153,377 | -70,474 | |
| Impairment losses | -1,551 | -1,572 | 21 | |
| Net trade receivables | 5.7.1 | 81,352 | 151,805 | -70,453 |
| Other receivables | 20,704 | 12,494 | 8,210 | |
| Total | 102,056 | 164,299 | -62,243 | |
The decrease in trade receivables is in line with the decrease in sales and services to
external customers and marks the return to a more regular commercial situation.
5.7.1 Fluxys Belgium group reduces its exposure to credit risk, both in terms of default
and concentration of risk, by requiring short payment terms from its customers (payment
within one month), a strict policy for the follow-up of trade receivables, and a systematic
evaluation of its counterparties' financial position. The credit losses expected and
accounted for in trade and other receivables are not very material for the Fluxys Belgium
group.
Trade receivables can be broken down as follows according to their ageing:
| Net trade receivables according to ageing | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Receivables not past due | 79,253 | 150,829 | -71,576 |
| Receivables < 3 months | 1,966 | 885 | 1,081 |
| Receivables 3 - 6 months | 25 | 0 | 25 |
| Receivables > 6 months | 17 | 0 | 17 |
| Receivables in litigation or doubtful | 91 | 91 | 0 |
| Total | 81,352 | 151,805 | -70,453 |
Disputed or doubtful receivables mainly concern grid users. Those deemed irrecoverable
have been subject to impairment losses of 100%.
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Note 5.8. Short-term investments, cash and cash equivalents
Investments relate to investments in the form of bonds, commercial paper and bank
deposits over more than three months and maximum one year.
Cash and cash equivalents are mainly euro investments in commercial paper that
mature within a maximum of three months after the date of acquisition, deposits made
with Fluxys SA (cash pooling), term deposits at credit institutions, current account bank
balances and cash in hand.
| Short-term investments, cash and cash equivalents | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Short-term investments | 32,998 | 26,113 | 6,885 |
| Cash and cash equivalents | 1,068,227 | 1,070,708 | -2,481 |
| Cash equivalents and cash pooling | 1,012,850 | 1,025,335 | -12,485 |
| Short-term deposits | 19,120 | 8,108 | 11,012 |
| Bank balances | 36,246 | 37,246 | -1,000 |
| Cash in hand | 11 | 19 | -8 |
| Total | 1,101,225 | 1,096,821 | 4,404 |
In 2023, the average rate of return on short-term investments, cash and cash equivalents
was 2.19%. The credit losses expected and accounted for in investments, cash and cash
equivalents are not material for the Fluxys Belgium group.
The increase in cash equivalents is primarily due to the increase in sales following major
gas flows to Germany and the Netherlands.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 5.9. Other current assets
| Other current assets | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Accrued income | 4,425 | 1,213 | 3,212 | |
| Prepaid expenses | 17,449 | 13,033 | 4,416 | |
| Other current assets | 5.9.1 | 1,244 | 2,940 | -1,696 |
| Total | 23,118 | 17,186 | 5,932 | |
Other current assets mainly comprise prepaid expenses amounting to €17,449 thousand
(insurance, fees, rent, etc.) as well as various items of accrued income.
5.9.1 Other current assets include the short-term share of the plan asset surpluses
compared with the actuarial liability relating to the group's pension liabilities (see Notes
5.5 and 5.14).
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Note 5.10. Equity
On 31-12-2023, equity amounted to €613,413 thousand. The €30,204 thousand
decrease since the previous year comes from dividends paid in 2023 (€98,369 thousand),
which are partially offset by the comprehensive income for the period (€67,377
thousand),
| Note on parent entity shareholding | |||
| Ordinary | Preference | Total | |
| shares | shares | ||
| I. Movements in number of shares | |||
| 1. Number of shares, opening balance | 70.263.501 | 0 | 70.263.501 |
| 2. Number of shares issued | |||
| 3. Number of ordinary shares cancelled or | |||
| reduced (-) | |||
| 4. Number of preference shares cancelled or | |||
| reduced (-) | |||
| 5. Other increase (decrease) | |||
| 6. Number of shares, closing balance | 70.263.501 | 0 | 70.263.501 |
| II. Other information | |||
| No face | |||
| 1. Face value of shares | value | ||
| mentioned | |||
| 2. Number of shares owned by the company | 0 | 0 | 0 |
| 3. Interim dividends during the financial year | |||
The share capital of Fluxys Belgium SA is represented by 70,263,501 shares with no face
value, divided into two categories, in addition to the specific share.
Shares in category B are and remain registered. They are held by long-term shareholders.
Category D shares are registered or dematerialised and are mainly held by the general
public.
The Belgian State owns one specific registered share, namely share no. 1, which does not
belong to any of the above categories and shall be referred to hereinafter as the
'specific share'. In accordance with the Fluxys Belgium articles of association, this 'specific
share' carries specific rights. These specific rights remain attached to this share in addition
to the common rights attached to the ordinary shares of Fluxys Belgium (former
“Distrigas”), as long as this share is owned by the Belgian State, as established in Articles 3
to 5 of the Royal Decree of 16 June 1994. These specific rights are exercised by the
Federal Minister responsible for energy. In addition to these specific rights this 'specific
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
share' also entitles to receive 100 times the dividend or any other distribution by the entity
to its shareholders, than the ones attached to the category B or D shares.
Note 5.11. Interest-bearing liabilities
| Non-current interest-bearing liabilities | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Leases | 5.11.3 | 24,354 | 25,878 | -1,524 |
| Bonds | 5.11.1 | 696,412 | 696,985 | -573 |
| Other borrowings | 5.11.2 | 349,545 | 392,909 | -43,364 |
| Total | 1,070,311 | 1,115,772 | -45,461 | |
| Of which debts guaranteed by the public | 0 | 0 | 0 | |
| authorities or by sureties | ||||
| Current interest-bearing liabilities | In thousands of € | |||
| Notes | 31-12-2023 | 31-12-2022 | Change | |
| Leases | 5.11.3 | 2,355 | 2,477 | -122 |
| Bonds | 5.11.1 | 2,516 | 2,523 | -7 |
| Other borrowings | 5.11.2 | 50,465 | 51,269 | -804 |
| Total | 55,336 | 56,269 | -933 | |
| Of which debts guaranteed by the | 0 | 0 | 0 | |
| public authorities or by sureties | ||||
5.11.1. In November 2014 and October 2017, Fluxys Belgium issued bonds for a total of
€700,000 thousand. These bonds offer a gross annual coupon of 1.75% and 3.25%
respectively. They will mature between 2027 and 2034.
5.11.2. Other borrowings include:
● A 25-year loan of €400,000 thousand at a fixed rate contracted with the EIB in
December 2008 to finance investments in developing the gas transmission network,
the balance of which was €206,000 thousand as at 31-12-2023.
● A loan of €257,000 thousand at a fixed rate of 3.20% with Fluxys to cover needs
relating to investments necessary for the transshipment services at the Zeebrugge
LNG Terminal. The balance still due as at 31-12-2023 is €186,909 thousand.
● Short-term loans and accrued interest amounting to €7,101 thousand.
5.11.3. Lease liabilities are accounted for in line with IFRS 16 and are limited to the
contractual obligations, even if the Group expects certain contracts to be extended in
the future, but this option isn’t stated in the current contract.
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| Changes in liabilities based on financing activities | |||||||
| 31.12.2022 | Cash flow | Other movements | 31.12.2023 | ||||
| Reclassifi- | Variation in | ||||||
| New lease | cation | accrued | |||||
| contracts | between | interests | |||||
| non-current | payable | ||||||
| and current | |||||||
| Non-current | |||||||
| interest- | 1,115,772 | -1,000 | 3,402 | -48,290 | 0 | 427 | 1,070,311 |
| bearing | |||||||
| liabilities | |||||||
| Leases | 25,878 | 0 | 3,402 | -4,926 | 0 | 0 | 24,354 |
| Bonds | 696,985 | -1,000 | 0 | 0 | 0 | 427 | 696,412 |
| Other | 392,909 | 0 | 0 | -43,364 | 0 | 0 | 349,545 |
| borrowings | |||||||
| Current | |||||||
| interest- | 56,269 | -48,411 | 0 | 48,290 | -812 | 0 | 55,336 |
| bearing | |||||||
| liabilities | |||||||
| Leases | 2,477 | -5,048 | 0 | 4,926 | 0 | 0 | 2,355 |
| Bonds | 2,523 | 0 | 0 | 0 | -7 | 0 | 2,516 |
| Other | 51,269 | -43,363 | 0 | 43,364 | -805 | 0 | 50,465 |
| borrowings | |||||||
| Total | 1,172,041 | -49,411 | 3,402 | 0 | -812 | 427 | 1,125,647 |
Cash flows relating to interest-bearing liabilities are included in points IV.1.2, IV.2.1 and
IV.2.2 of the consolidated statement of cash flows.
The change in accrued interests payable and the amortisation of issuance costs (in total
-€385 thousand) relates to the difference between:
- the interests paid, including leases (see point IV.3.1 of the consolidated
statement of cash flows: -€34,679 thousand) and
- the sum of borrowing interest costs and interests on lease liabilities (see Note 4.4:
€66,735 thousand) minus the interest on regulatory liabilities of €32,441 thousand
= €34,294.thousand.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Maturity of interest-bearing liabilities at 31-12-2023, | ||||
| In thousands of € | ||||
| non-discounted | ||||
| Up to one year | Between one and | More than five | Total | |
| five years | years | |||
| Leases | 3.094 | 16.280 | 12.200 | 31.574 |
| Bonds | 19.355 | 358.621 | 428.727 | 806.703 |
| Other borrowings | 64.393 | 213.080 | 191.666 | 469.139 |
| Total | 86.842 | 587.981 | 632.593 | 1.307.416 |
| Maturity of interest-bearing liabilities at 31-12-2022, | ||||
| non-discounted | In thousands of € | |||
| Up to one year | Between one and | More than five | Total | |
| five years | years | |||
| Leases | 3,336 | 16,033 | 14,711 | 34,080 |
| Bonds | 19,316 | 364,769 | 439,990 | 824,075 |
| Other borrowings | 66,752 | 219,478 | 242,561 | 528,791 |
| Total | 89,404 | 600,280 | 697,262 | 1,386,946 |
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Note 5.12. Regulatory liabilities
| Regulatory liabilities | In thousands of € | |||
| Note | 31-12-2023 | 31-12-2022 | Difference | |
| Other financing – long term | 888,753 | 612,582 | 276,171 | |
| Other financing – short term | 203,249 | 149,863 | 53,386 | |
| Total of other financing (A) | 5.12.1 | 1,092,002 | 762,445 | 329,557 |
| Other liabilities – long term | 150,963 | 134,227 | 16,736 | |
| Other liabilities – short term | 15,873 | 38,622 | -22,749 | |
| Total of other liabilities (B) | 5.12.2 | 166,836 | 172,849 | -6,013 |
| Total of regulatory liabilities (A+B | 1,258,838 | 935,294 | 323,544 | |
| = C) | ||||
| Presentation in balance sheet: | ||||
| Non-current regulatory liabilities | 1,039,716 | 746,809 | 292,907 | |
| Current regulatory liabilities | 219,122 | 188,485 | 30,637 | |
| Total of regulatory liabilities (C) | 1,258,838 | 935,294 | 323,544 | |
5.12.1 Other financing corresponds to the specific allocations of regulatory liabilities at
the group’s disposal firstly to finance specific investments, notably in the second jetty at
Zeebrugge and secondly, the cost associated with the conversion of part of the gas
transmission network. These amounts bear interest at a 10-year OLO rate for one part and
the remainder at the average 1-year Euribor rate. Auction premiums of € 370.0 million
were realised in 2023; this amount was recorded under ‘Other financing’. This
presentation is justified by the different regulatory treatment applied to auction premiums
in accordance with the European network code.
5.12.2 The other regulatory liabilities included in ‘other liabilities’ include the positive
differences between the regulated tariffs invoiced and the regulated tariffs acquired.
These amounts bear interest at the average Euribor 1-year rate.
The regulatory liabilities are reconciled with the segment reporting and the statement of
cash flows as follows:
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Movements of the regulatory liabilities | In thousands of € | ||
| Long term + short term | Other financing(A) | Other liabilities | Total |
| (B) | |||
| Balance as at 01-01-2023 | 762,445 | 172,849 | 935,294 |
| Use | -60,380 | -101,239 | -161,619 |
| Additions | 370,025 | 82,698 | 452,723 |
| Interest | 21,328 | 11,112 | 32,440 |
| Transfer | -1,416 | 1,416 | 0 |
| Balance as at 31-12-2023 | 1,092,002 | 166,836 | 1,258,838 |
The sum of use and additions amounts to €291,104 thousand and is in line with the sum of
the changes in regulatory liabilities in note 4 (segment information - net change in
revenue). €52,275 thousand of other financing was used to finance investments, in
agreement with the regulator. This amount had no impact on the profit/loss.
This net increase in regulatory liabilities also corresponds with the change in regulatory
liabilities included in item 1.2.6. of the cash flow table.
The €32,440 thousand interest charge on regulatory liabilities was accounted for in the
finance costs.
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Note 5.13. Provisions
5.13.1 Provisions for employee benefits
| Provisions for employee benefits | In thousands of € |
| Provisions at 31-12-2022 | 50,988 |
| Additions | 9,425 |
| Use | -7,495 |
| Release | 0 |
| Unwinding of the discount | 8,497 |
| Actuarial gains/losses recognised in the profit/loss (seniority | 1,199 |
| bonuses) | |
| Expected return on plan assets | -7,088 |
| Actuarial gains/losses recognised in equity | 13,394 |
| Reclassification to the assets | -16,958 |
| Provisions at 31-12-2023, of which: | 51,963 |
| Non-current provisions | 48,455 |
| Current provisions | 3,508 |
The increase in provisions for employee benefits can primarily be explained by the
combined effects of changes in experience. In addition to the increase in provisions,
there is also a decrease in the surplus from plan assets (see Note 5.14).
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5.13.2. Other provisions
| Provisions for: |
In thousands of € | |||
| Litigation and | Environment and site | Other | Total other | |
| claims | restoration | provisions | ||
| Provisions at 31-12-2022 | 2,581 | 1,546 | 0 | 4,127 |
| Additions | 68 | 0 | 99 | 167 |
| Use | 0 | -11 | 0 | -11 |
| Release | 0 | 0 | 0 | 0 |
| Unwinding of the discount | 0 | -53 | 0 | -53 |
| Provisions at 31-12-2023, of | 2,649 | 1,482 | 99 | 4,230 |
| which: | ||||
| Non-current provisions | 2,649 | 1,290 | 0 | 3,939 |
| Current provisions | 0 | 192 | 99 | 291 |
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5.13.3 Movements in the income statement and maturity of provisions
Movements in the income statement are detailed as follows:
| Impact 2023 | In thousands of € | ||
| Additions | Use and reversals | Total | |
| Operating profit (loss) | 9,592 | -7,506 | 2,086 |
| Financial profit (loss) | 8,444 | -5,889 | 2,555 |
| Total | 18,036 | -13,395 | 4,641 |
| Maturity of provisions at 31-12-2023 | In thousands of € | |||
| Up to one year | Between one | More than | Total | |
| and five years | five years | |||
| Litigation and claims | 0 | 0 | 2,648 | 2,648 |
| Environment and site restoration | 192 | 1,291 | 0 | 1,483 |
| Other | 99 | 0 | 0 | 99 |
| Subtotal | 291 | 1,291 | 2,648 | 4,230 |
| Employee benefits | 3,508 | 14,032 | 34,423 | 51,963 |
| Total | 3,799 | 15,323 | 37,071 | 56,193 |
| Maturity of provisions at 31-12-2022 | In thousands of € | |||
| Up to one year | Between one | More than five | Total | |
| and five years | years | |||
| Litigation and claims | 0 | 0 | 2,581 | 2,581 |
| Environment and site | 0 | 1,546 | 0 | 1,546 |
| restoration | ||||
| Subtotal | 0 | 1,546 | 2,581 | 4,127 |
| Employee benefits | 3,543 | 14,172 | 33,273 | 50,988 |
| Total | 3,543 | 15,718 | 35,854 | 55,115 |
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Provisions for litigation and claims
The provisions cover likely litigation payments arising for instance from the construction of
the Zeebrugge LNG terminal (1983).
The estimation for these provisions is based on the value of claims filed or on the
estimated amount of risk incurred.
Provisions for the environment and site restoration
These provisions essentially cover the costs of safety, clean-up and restoration of sites
subject to closure.
These provisions are accrued in accordance with the Belgian regional environmental
legislation and the Belgian Gas Act. These works require action plans and numerous
studies in cooperation with the various public authorities and the institutions established
for this purpose.
Note 5.14. Provisions for employee benefits
Description of the principal retirement schemes and related benefits
In Belgium collective agreements regulate the rights of entity employees in the electricity
and gas industries.
Defined benefit pension plans
These agreements cover 'salary scale' personnel recruited before 1 June 2002 and
management personnel recruited before 1 May 1999 allowing affiliates to benefit from a
capital calculated based on a formula that takes account of their final annual salary
and the number of years of service when they retire. These are called ‘defined benefit
pension plans’.
Obligations under these defined benefit pension plans are funded through a number of
pension funds for the electricity and gas industries and through insurance companies.
Employees and employers contribute to these pension plans. The employer’s contribution
is determined annually on the basis of an actuarial report. This is to ensure that the
minimum legal funding requirements have been met and that the long-term funding of
the benefits is assured.
Description of the main actuarial risks
The group is exposed, in connection with its defined benefit pension plans, to risks related
to actuarial assumptions concerning investments, interest rates, life expectancy and
salary development.
The present value of defined benefit obligations is determined using a discount rate
based on high-quality bonds.
The assumptions concerning salary increases, inflation, personnel movements and
expected average retirement age are defined based on historic entity statistics. The
mortality tables used are those published by the IABE (Institute of Actuaries in Belgium).
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At the end of 2023, the defined benefit pension plans have surplus plan assets of €12,443
thousand (2022: €29,401 thousand) compared with the actuarial liability on estimated
liabilities of the group. The amount was therefore transferred to the assets in the balance
sheet under 'Other non-current assets' (note 5.5) and 'Other current assets' (note 5.9.1).
The financing policy was amended in 2018 to ensure that surpluses are recovered over
the duration of the pension plans. In addition, transfers between different pension plans
are possible.
Defined contribution pension plans with guaranteed minimum return
In Belgium, ‘Salary scale’ personnel recruited after 1 June 2002 and management staff
recruited after 1 May 1999 as well as the members of the management benefit from
defined contribution pension plans.
The pension plans are financed by contributions from employees and employers, the
latter corresponding to a multiple of the contributions from employees. Obligations under
these defined contribution pension plans are funded through a number of pension funds
for the electricity and gas industries and through insurance companies.
The assets of the pension funds are allocated among the various categories of the
following risks:
● Low risk: bonds in the euro zone and/or high-quality bonds.
● Medium risk: risk diversification between bonds, convertible bonds, real-estate
and equity instruments.
● High risk: equity instruments, real estate, etc.
● Dynamic Asset Allocation: rapid adjustment of the portfolio structure in case of
specific events in order to limit losses in periods of stress.
Belgian law requires that the employer guarantees a minimum return for defined
contribution plans. These minimum returns vary based on the market rates.
For the minimum returns guaranteed by the employer, the following elements apply:
● For contributions paid up until 31-12-2015, the minimum return of 3.25% for
employer contributions and 3.75% for employee contributions applies up to that
date.
● For contributions paid since 01-01-2016, the minimum return is variable based on
OLO rates, with a minimum of 1.75% and a maximum of 3.75%. Given the current
rates, this minimum guaranteed return has been set at 1.75%.
● The accounting method used by the group to value these ‘defined contribution
pension plans, with a guaranteed minimum return’, is identical to the method
used for ‘defined benefit plans’ (see Note 2.11).
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For certain defined contribution plans, the contributions increase depending on the
seniority in the Group (referred to as ‘backloaded’). For these plans, the contributions are
distributed uniformly over time.
Description of the main risks
Defined contribution plans expose the employer to the risk of a minimum return on
pension fund assets that do not offer a sufficient guaranteed return.
Other long-term employee benefits
Fluxys Belgium group also has early pension schemes, other post-employment benefits
such as reimbursement of medical expenses and price subsidies, as well as other long-
term benefits (seniority bonuses). Not all of these benefits are funded.
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Funding status of the employee benefits
| In thousands of € | Pensions * | Other ** | ||
| 2023 | 2022 | 2023 | 2022 | |
| Present value of funded obligations | -206,978 | -194,397 | -35,643 | -32,840 |
| Fair value of plan assets | 205,500 | 205,651 | 0 | 0 |
| Funding status of plans | -1,478 | 11,254 | -35,643 | -32,840 |
| Effect of the asset ceiling5 | -2,398 | 0 | 0 | 0 |
| Other | 0 | 0 | 0 | 0 |
| Net employee benefit liability | -3,876 | 11,254 | -35,643 | -32,840 |
| Of which assets | 12,443 | 29,401 | 0 | 0 |
| Of which liabilities | -16,319 | -18,147 | -35,643 | -32,840 |
* Pensions also include non-prefinanced early-retirement obligations. They also include,
since 2018, contributions paid to cover pension schemes with a profile that takes into
account seniority.
** The item ‘Other’ includes seniority bonuses paid over the course of the career as well
as other post-employment benefits (reimbursement of medical expenses and price
subsidies (discount on energy costs)).
5
Applicable to a limited number of plans where the plan asset surplus is not transferable
to other plans.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Movements in the present value of obligations
| In thousands of € | Pensions * | Other ** | ||
| 2023 | 2022 | 2023 | 2022 | |
| At the start of the period | -194,397 | -221,035 | -32,840 | -47,941 |
| Service costs | -8,682 | -9,239 | -743 | -1,289 |
| Early retirement costs | 0 | -1,030 | 0 | 0 |
| Financial loss (-) / profit (+) | -7,273 | -1,879 | -1,225 | -496 |
| Participant’s contributions | -811 | -807 | 0 | 0 |
| Change in demographic | -385 | -777 | -23 | -605 |
| assumptions | ||||
| Change in financial assumptions | 2,379 | 44,415 | -864 | 16,144 |
| Change from experience | -6,678 | -12,505 | -1,993 | -398 |
| adjustments | ||||
| Past service costs | 0 | 0 | 0 | 0 |
| Benefits paid | 8,869 | 8,460 | 2,045 | 1,745 |
| Reclassifications | 0 | 0 | 0 | 0 |
| Other | 0 | 0 | 0 | 0 |
| At the end of the period | -206,978 | -194,397 | -35,643 | -32,840 |
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Movements in the fair value of plan assets
| In thousands of € | Pensions * | Other ** | ||
| 2023 | 2022 | 2023 | 2022 | |
| At the start of the period | 205,651 | 221,062 | 0 | 0 |
| Interest income | 7,088 | 1,733 | 0 | 0 |
| Return on plan assets (excluding net | 9,278 | -28,296 | 0 | 0 |
| interest income) | ||||
| Employer’s contributions | 5,450 | 13,756 | 2,045 | 1,745 |
| Participants’ contributions | 811 | 807 | 0 | 0 |
| Benefits paid | -8,869 | -8,460 | -2,045 | -1,745 |
| Change in financial assumptions | -13,909 | 5,049 | 0 | 0 |
| Other | 0 | 0 | 0 | 0 |
| At the end of the period | 205,500 | 205,651 | 0 | 0 |
| Actual return on plan assets | 16,366 | -26,563 | 0 | 0 |
The return on pension plan assets in 2023 is considerably higher than in 2022 as a result of
improved conditions on the financial markets in 2023.
236
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Costs recognised in profit or loss
| In thousands of € | Pensions * | Other ** | ||
| 2023 | 2022 | 2023 | 2022 | |
| Cost | ||||
| Service costs | -8,682 | -9,240 | -743 | -1,289 |
| Early retirement costs | 0 | -1,030 | 0 | 0 |
| Past service costs | 0 | 0 | 0 | 0 |
| Actuarial gains/(losses) on other | -1,199 | 121 | 0 | 0 |
| long-term benefits | ||||
| Net interest on net liabilities/(assets) | ||||
| Interest expense on obligations | -7,272 | -1,879 | -1,225 | -496 |
| Interest income on plan assets | 7,088 | 1,734 | 0 | 0 |
| Costs recognised in profit or loss | -10,065 | -10,294 | -1,968 | -1,785 |
Actuarial losses (gains) recognised in other comprehensive income
| In thousands of € | Pensions * | Other** | ||
| 2023 | 2022 | 2023 | 2022 | |
| Change in demographic assumptions | -410 | -777 | -23 | -605 |
| Change in financial assumptions | -10,306 | 49,343 | -864 | 16,144 |
| Change from experience adjustments | -6,678 | -12,505 | -1,993 | -398 |
| Effect of the asset ceiling | -2,398 | 0 | 0 | 0 |
| Return on plan assets (excluding net interest | 9,278 | -28,296 | 0 | 0 |
| income) | ||||
| Actuarial losses (gains) recognised in other | -10,514 | 7,765 | -2,880 | 15,141 |
| comprehensive income | ||||
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Allocation of obligation by type of participant to the plan
| In thousands of € | 2023 | 2022 |
| Active plan participants | -196,014 | -186,116 |
| Non-active participants with deferred benefits | -23,535 | -21,413 |
| Retirees and beneficiaries | -23,072 | -19,708 |
| Total | -242,621 | -227,237 |
Allocation of obligation by type of benefit
| In thousands of € | 2023 | 2022 |
| Retirement and death benefits | -206,978 | -194,397 |
| Other post-employment benefits (medical expenses | -26,748 | -24,065 |
| and price subsidies) | ||
| Seniority bonuses | -8,895 | -8,775 |
| Total | -242,621 | -227,237 |
238
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Main actuarial assumptions used
| 2023 | 2022 | |
| Discount rate between 10 to 12 years | 3.03% | 3.73% |
| Discount rate between 13 to 19 years | 3.24% | 3.75% |
| Discount rate over 19 years | 3.25% | 3.73% |
| Expected average salary increase | 2.04% | 2.04% |
| Expected inflation | 2.03% | 1.99% |
| Expected increase in health expenses | 3.03% | 2.99% |
| Expected increase of price subsidies | 2.03% | 1.99% |
| Average assumed retirement age | 63(BAR) / 65(CAD) | 63(BAR) / 65(CAD) |
| Mortality tables | IABE prospective | IABE prospective |
| Life expectancy in years: | ||
| For a person aged 65 at the balance sheet date: | ||
| - Male | 20 | 20 |
| - Female | 24 | 24 |
| For a person aged 65 in 20 years: | ||
| - Male | 22 | 22 |
| - Female | 26 | 26 |
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The fair value of plan assets is distributed based on the following major
categories
| 2023 | 2022 | |
| Listed investments | 94,63% | 92,83% |
| Shares - eurozone | 8,30% | 13,91% |
| Shares - outside eurozone | 19,78% | 14,86% |
| Government bonds - eurozone | 1,99% | 0,62% |
| Other bonds - eurozone | 29,30% | 28,68% |
| Other bonds - outside eurozone | 35,26% | 34,76% |
| Non-listed investments | 5,37% | 7,17% |
| Insurance contracts | 0,00% | 0,00% |
| Real estate | 1,63% | 1,46% |
| Cash and cash equivalents | 2,47% | 4,47% |
| Other | 1,27% | 1,25% |
| Total (in %) | 100,00% | 100,00% |
| Total (in thousands of €) | 205,500 | 205,651 |
240
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Sensitivity analysis
| Impact on obligations | In thousands of € |
| Increase (-) / Decrease (+) | |
| Increase in discount rate (0.25%) | 3,639 |
| Average salary increase - Excluding inflation (0.1%) | -1,482 |
| Increase in inflation rate (0.25%) | -3,423 |
| Increase in healthcare benefits (0.01%) | -27 |
| Increase in price subsidies (0.5%) | -855 |
| Increase in life expectancy of retirees (1 year) | -873 |
Average weighted duration of obligations
| 2023 | 2022 | |
| Average weighted duration of defined benefit obligations | 8 | 9 |
| Average weighted duration of other post-employment obligations | 15 | 19 |
Expected contribution to pay for employee benefits relating to extra-
statutory pensions
| In thousands of € | |
| Expected contribution for 2024 (for all | 8,347 |
| pension and other obligations, listed above) |
The contributions to be paid are function of the payroll of the population concerned.
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Note 5.15. Deferred tax assets and liabilities
| Recognised deferred tax liabilities | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Difference | |
| Valuation of assets | 95,725 | 105,227 | -9,502 |
| Accrued income | 148 | 237 | -89 |
| Fair value of financial instruments | 1,731 | 2,252 | -521 |
| Provisions for employee benefits or provisions not | 33,598 | 35,832 | -2,234 |
| accepted under IFRS | |||
| Other normative differences | 0 | 0 | 0 |
| Total | 131,202 | 143,548 | -12,346 |
Deferred tax assets and liabilities are offset within each taxable entity. They are all fully
recognised.
The main source of deferred tax is the difference between the book value and the tax
base of property, plant and equipment. This difference arises firstly from the recognition in
the opening balance sheet of property, plant and equipment at their fair value
corresponding to their deemed cost and, secondly, from the recognition at fair value of
the assets and liabilities arising from the SEGEO and Distrigas & C° business combinations
in 2008.
Provisions accounted for in accordance with IAS 19 (Employee benefits) and provisions
recognised under local GAAP but not recognised under IFRS are another major source of
deferred tax.
242
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Movement for the period | In thousands of € |
| Deferred tax | |
| As at 31-12-2022 | 143,548 |
| Deferred tax expenses – Profit & loss account | -8,998 |
| Deferred tax expenses – other comprehensive | -3,348 |
| income | |
| As at 31-12-2023 | 131,202 |
Note 5.16. Trade and other payables
| Trade and other liabilities | In thousands of € | ||
| 31-12-2023 | 31-12-2022 | Change | |
| Trade payables | 54,501 | 60,357 | -5,856 |
| Payroll and related items | 39,341 | 39,517 | -176 |
| Other payables | 25,114 | 344,659 | -319,545 |
| Total | 118,956 | 444,533 | -325,577 |
The significant decrease in other payables is related to the recognition in 2022 of the
exceptional solidarity contribution of €300 million.
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Note 6. Financial instruments
Principles for managing financial risks
Fluxys Belgium Group is exposed to several financial risks arising from its underlying
activities and corporate financing activities. These financial risks consist of market risks
(including currency risks, interest rate risks and price risks), credit risks and liquidity risks.
The group's administrative organisation, controlling and financial reports ensure that
these risks are constantly monitored and managed.
The Group uses derivative financial instruments to hedge its exposure to foreign
exchange and interest rate risks arising from its operational, financing and investment
activities. The Group does not engage in speculative transactions.
Cash management policy
The Fluxys Belgium group's cash is managed as part of a general policy and cash
surpluses are invested with Fluxys SA under cash pooling agreements. By way of reminder,
Fluxys SA centralises the management of the Fluxys group’s cash funds and financing.
The objective of this policy is to optimise the group’s cash positions. These transactions
are entered into at market terms and conditions.
The group's financial policy stipulates that cash surpluses be maintained at first class
financial institutions or invested in financial instruments issued by entities with a high credit
rating or in financial instruments of issuers which are covered by a guarantee from a
European Member State or whose share capital is predominantly controlled by state-
owned entities. Cash surpluses are invested following a competitive bidding award, and
in instruments that are sufficiently diversified to limit counterparty risk concentration. These
investments are subject to constant monitoring and risk analysis on a case-by-case basis.
At 31-12-2023, current and non-current investments, cash and cash equivalents
amounted to €1,207,537 thousand compared to €1,204,321 thousand at the end of 2022.
Credit and counterparty risks
The group systematically assesses its counterparties' financial capacity and systematically
monitors receivables. Group policy regarding counterparty risks requires that the group
submits potential customers and suppliers to a detailed preliminary financial analysis
(liquidity, solvency, profitability, reputation and risks). The group uses internal and external
information, such as official analysis performed by rating agencies (Moody's, Standard &
Poor's and Fitch). These rating agencies assess entities in relation to risk and award them
a credit score (rating). The group also uses databases containing general, financial and
market information to complement its own evaluation of potential customers and
suppliers. In addition, for most of its activities the group is allowed to contractually require
guarantees (either bank guarantees or cash deposits) from counterparties. The group
thereby reduces its exposure to credit risk both in terms of default and concentration of
customers.
In view of the concentration risk it must be noted that three clients contribute
respectively 27%, 15% and 12% of the operating revenue. The breakdown per segment of
these latter is €239 million in transmission, €17 million in storage and €27 million in
terminalling.
244
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Interest rate risk
The group's debt mainly consists of fixed interest rate loans maturing between 2024 and
2034, the balance of which (including lease obligations) as at 31-12-2023 represents
€1,125,647 thousand compared to €1,172,041 thousand at the end of 2022.
In addition, the group's interest-bearing liabilities include other financing and liabilities to
be used within the regulatory framework. As explained in Note 5.11, part of these bear
interest at a 10-year OLO rate and the remainder at the average Euribor 1-year rate. The
group does not incur any interest rate risks related to this.
Therefore, a sensitivity analysis is not representative for the risk inherent in these financial
instruments. Consequently, the Fluxys Belgium group’s exposure to interest rate risk is very
limited.
Liquidity Risk
Liquidity risk management is one of Fluxys Belgium group’s main objectives. The amounts
invested and the investment period reflect the short- and long-term planning of cash
needs as closely as possible, taking into account operational risks.
The Fluxys Belgium group can call upon Fluxys SA in case of liquidity needs, under the
cash pooling arrangements. By way of reminder, Fluxys centralises the management of
the Fluxys group’s cash funds and financing and has unused confirmed revolving credit
facilities.
The maturity of interest-bearing liabilities is reported in Note 5.11.
Summary of financial instruments at balance sheet date
The group's main financial instruments consist of financial and trade receivables and
payables, short-term investments, cash and cash equivalents.
The following table gives an overview of financial instruments at 31 December 2023:
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| Summary of financial instruments at balance sheet date | In thousands of € | |||
| 31-12-2023 | Category | Book value | Fair value | Level |
| I. Non-current assets | ||||
| Other financial assets at amortised cost | A | 107,199 | 100,288 | 1 & 2 |
| Other financial assets at fair value through | B | 4,011 | 4,011 | 2 |
| profit or loss | ||||
| Lease receivables | A | 0 | 0 | 2 |
| Other receivables | A | 21,496 | 21,496 | 2 |
| II. Current assets | ||||
| Lease receivables | A | 1,644 | 1,644 | 2 |
| Trade and other receivables | A | 102,056 | 102,056 | 2 |
| Cash investments | A | 32,998 | 32,959 | 2 |
| Cash and cash equivalents | A | 1,068,227 | 1,068,334 | 2 |
| Total financial instruments – assets | 1,337,631 | 1,330,788 | ||
| I. Non-current liabilities | ||||
| Interest-bearing liabilities | A | 1,070,311 | 1,021,899 | 2 |
| Other financial liabilities | B | 4,010 | 4,010 | 2 |
| II. Current liabilities | ||||
| Interest-bearing liabilities | A | 55,336 | 55,336 | 2 |
| Trade and other payables | A | 118,956 | 118,956 | 2 |
| Total financial instruments - liabilities | 1,248,613 | 1,200,201 | ||
The categories correspond to the following financial instruments:
A. Financial assets or financial liabilities at amortised cost.
B. Assets or liabilities at fair value through profit or loss.
246
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Summary of financial instruments at balance sheet date | In thousands of € | |||
| 31-12-2022 | Category | Book value | Fair value | Level |
| I. Non-current assets | ||||
| Other financial assets at amortised | A | 107,595 | 97,804 | 1 & 2 |
| cost | ||||
| Other financial assets at fair value | B | 3,576 | 3,576 | 2 |
| through profit or loss | ||||
| Other financial assets at fair value | A | 0 | 0 | 2 |
| Lease receivables | ||||
| Other receivables | A | 15,144 | 15,144 | 2 |
| II. Current assets | ||||
| Lease receivables | A | 2,094 | 2,094 | 2 |
| Trade and other receivables | A | 164,299 | 164,299 | 2 |
| Cash investments | A | 26,113 | 26,397 | 2 |
| Cash and cash equivalents | A | 1,070,708 | 1,070,600 | 2 |
| Total financial instruments – assets | 1,389,529 | 1,379,914 | ||
| I. Non-current liabilities | ||||
| Interest-bearing liabilities | A | 1,115,772 | 1,036,002 | 2 |
| Other financial liabilities | B | 3,575 | 3,575 | 2 |
| II. Current liabilities | ||||
| Interest-bearing liabilities | A | 56,269 | 56,269 | 2 |
| Trade and other payables | A | 444,533 | 444,533 | 2 |
| Total financial instruments - liabilities | 1,620,149 | 1,540,379 | ||
All of the group's financial instruments fall within Levels 1 and 2 of the fair value hierarchy.
Their fair value is measured on a recurring basis.
For the fair value measurement of Level 1, only quoted prices are used (without
modification) for identical assets and liabilities in active markets. They mainly include
bonds.
For the fair value measurement of Level 2, observable prices other than the quoted
prices of Level 1 are used. The prices are observable for the asset or liability, either directly
or indirectly.
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The techniques for measuring the fair value of Level 2 financial instruments are the
following:
● The items ‘Interest-bearing liabilities’ include the fixed-rate bonds issued by Fluxys
Belgium, whose fair value is determined based on active market rates, usually
provided by financial institutions.
● The fair value of other financial assets and liabilities categorised under level 2 is
largely identical to their book value:
o because they have a short-term maturity (such as trade receivables and
payables),
o except for depreciated assets following the increase in interest rates
248
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 7. Contingent assets and liabilities – rights and liabilities of the group
Note 7.1. Litigation
Ghislenghien
As announced in 2011, Fluxys Belgium has undertaken, in agreement with insurers and
other responsible parties, to proceed with the final compensation of private victims of the
accident at Ghislenghien in 2004. All the victims who have presented themselves to date
and who were entitled to compensation have been compensated.
Compensation claim relating to the 'Open Rack Vaporiser' investment
A compensation claim for additional works was introduced by a supplier in the scope of
the 'Open Rack Vaporiser' investment made by Fluxys LNG. The latter disputes this claim
and an expert was appointed to assess the case. No reliable estimate is available at this
stage as the case is still being assessed. No provision has therefore been recognised as at
31-12-2023.
Other proceedings
Other legal proceedings related to the operation of our facilities are in progress, but their
expected impact is immaterial and/or such proceedings are being put on hold.
Note 7.2. Assets and items held for third parties, in their name, but at the risk
and for the benefit of entities included in the consolidation scope
In the ordinary course of business, the Fluxys Belgium group holds gas belonging to its
customers at its storage sites in Loenhout, in the pipelines and in the tanks at the LNG
terminal in Zeebrugge.
Note 7.3. Guarantees received
Bank securities for the benefit of the group comprise guarantees received from
contractors in respect of construction contracts as well as bank guarantees received
from customers. At 31 December 2023, the guarantees received amounted to €195,013
thousand. The expected credit losses on guarantees received are not very material for
the Fluxys Belgium group.
Note 7.4. Guarantees provided by third parties on behalf of the entity
Rental guarantees in favour of the owners of assets located in Belgium and leased by the
group amounted to €644 thousand as at 31-12-2023.
Other guarantees amounted to €265 thousand as at 31-12-2023.
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Note 7.5. Commitments under terminalling service contracts
The Capacity Subscription Agreements (CSA) entered into with the users of the
Zeebrugge LNG terminal provide for 110 mooring windows (slots) per contract until 2023
and 88 docking windows per contract until 2027.
During the binding window of an Open Season which was held at the end of 2020 for
additional regasification capacity at the Zeebrugge LNG terminal, the full 6 million tonnes
per year (or c. 10.5 GWh/h) capacity on offer had been subscribed. On this basis, Fluxys
LNG has taken the final investment decision to build the additional infrastructure at the
Zeebrugge LNG terminal. The additional regasification capacity will be provided in two
steps:
- as from early 2024, a total additional capacity of 4.7 million tonnes per year
will already be offered,
- as from early 2026, the full additional capacity of 6 million tonnes per year will
be offered.
In 2019, in addition to the aforementioned contracts, a new long-term contract was
entered into with Qatar Petroleum, subsidiary of Qatar Terminal Limited (QTL), for the
remaining unloading slots until 2039 with extension option until 2044.
In addition, Yamal Trade (a 100% subsidiary of Yamal LNG) and Fluxys LNG signed a 20-
year contract for the transshipment of a maximum of 8 million tonnes of LNG per year at
the port of Zeebrugge in Belgium. This contract has entered into effect upon the
commissioning of the 5
th
storage tank in the Zeebrugge LNG terminal at the end of 2019.
Note 7.6. Other commitments
Other commitments have been made and received by the Fluxys Belgium group, but
their potential impact is immaterial.
250
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
Note 8. Related parties
Fluxys Belgium and its subsidiaries are controlled by Fluxys, which is itself controlled by
Publigas.
The consolidated financial statements include transactions performed by Fluxys Belgium
and its subsidiaries in the normal course of their activities with unconsolidated related
companies or associates. These transactions take place under market conditions and
mainly involve transactions realised with Fluxys SA and Fluxys Europe (administrative
services, IT and housing services and the management of cash funds and financing),
Interconnector (UK) (inspection and repair services), IZT (IZT lease and facilities operation
and maintenance services), Dunkerque LNG (IT development and other services), Gaz-
Opale (terminalling services), Balansys (balancing operator), Fluxys TENP, FluxSwiss and
Flux Re (reinsurance).
Other related parties in the following tables concern other entities of the Fluxys group, in
which Fluxys Belgium does not hold a stake.
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| Significant transactions with related parties | (in thousands of €) | |||
| as at 31-12-2023 | ||||
| Parent | Joint | Other | ||
| company | arrange- | related | Total | |
| ments | parties | |||
| I. Assets with related parties | 1,013,091 | 13,000 | 2,381 | 1,028,472 |
| 1. Other financial assets | 0 | 3,000 | 0 | 3,000 |
| Loans | 0 | 3,000 | 0 | 3,000 |
| 2. Financial lease receivables | ||||
| (current and non-current) | 0 | 0 | 1,644 | 1,644 |
| 3. Trade and other receivables | 240 | 0 | 737 | 977 |
| Clients | 240 | 10,000 | 737 | 977 |
| 4. Cash and cash equivalents | 1,012,851 | 0 | 0 | 1,012,851 |
| 5. Other current assets | 0 | 0 | 0 | 0 |
| II. Liabilities with related parties | 188,322 | 0 | 674 | 188,996 |
| 1. Interest-bearing liabilities | ||||
| (current and non-current) | 186,909 | 0 | 0 | 186,909 |
| Other borrowings | 186,909 | 0 | 0 | 186,909 |
| 2. Trade and other payables | 1,406 | 0 | 12 | 1,418 |
| Suppliers | 37 | 0 | 0 | 37 |
| Other payables | 1,369 | 0 | 12 | 1,381 |
| 3. Other current liabilities | 7 | 0 | 662 | 669 |
| III. Transactions with related parties | 1,582 | 1,763 | 22,709 | 26,054 |
| 1. Services rendered and goods | 3,860 | 1,763 | 22,709 | 28,332 |
| delivered | ||||
| 2. Services received (-) | -2,284 | 0 | 0 | -2,284 |
| 3. Net financial income | 6 | 0 | 0 | 6 |
| 4. Directors’s and senior | 3,049 | 3,049 | ||
| executives’ remuneration | ||||
| Of which short-term benefits | 2,653 | 2,653 | ||
| Of which post-employment | 396 | 396 | ||
| benefits | ||||
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
| Significant transactions with related parties | (in thousands of €) | |||
| as at 31-12-2022 | ||||
| Parent | Joint | Other related | ||
| company | arrange- | parties | Total | |
| ments | ||||
| I. Assets with related parties | 1,885,715 | 15,000 | 2,966 | 1,903,681 |
| 1. Other financial assets | 0 | 15,000 | 0 | 15,000 |
| Loans | 0 | 15,000 | 0 | 15,000 |
| 2. Financial lease receivables | 0 | 0 | 2,094 | 2,094 |
| (current and non-current) | ||||
| 3. Trade and other receivables | 860,381 | 0 | 871 | 861,252 |
| Clients | 860,381 | 0 | 871 | 861,252 |
| 4. Cash and cash equivalents | 1,025,334 | 0 | 0 | 1,025,334 |
| 5. Other current assets | 0 | 0 | 0 | 0 |
| II. Liabilities with related parties | 186,900 | 0 | 636 | 187,536 |
| 1. Interest-bearing liabilities | ||||
| (current and non-current) | 186,812 | 0 | 0 | 186,812 |
| Other borrowings | 186,812 | 0 | 0 | 186,812 |
| 2. Trade and other payables | 79 | 0 | 8 | 87 |
| Suppliers | 0 | 0 | 0 | 0 |
| Other payables | 79 | 0 | 8 | 87 |
| 3. Other current liabilities | 9 | 0 | 629 | 638 |
| III. Transactions with related parties | -4,605 | 1,888 | 21,334 | 18,617 |
| 1. Services rendered and goods | 4,207 | 1,888 | 21,513 | 27,608 |
| delivered | ||||
| 2. Services received (-) | -1,806 | 0 | -179 | -1,985 |
| 3. Net financial income | -7,007 | 0 | 0 | -7,007 |
| 4. Directors’s and senior executives’ | 2,536 | 2,536 | ||
| remuneration | ||||
| Of which short-term benefits | 2,149 | 2,149 | ||
| Of which post-employment benefits | 387 | 387 | ||
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Note 9. Directors’ and senior executives’ remuneration
Pursuant to Article 10 of the Articles of Association, the Board of Directors of Fluxys
Belgium SA comprises at least three and no more than 24 non-executive directors.
Furthermore, the 'special share' grants to the Minister the right to appoint two
representatives of the federal government in the Board of Directors. Currently, two
representatives of the federal government attend the meetings of the Board of Directors
and the Strategic Committee.
The ordinary general meeting has decided to set the remuneration of the directors and
government representatives to a maximum of €360,000 (value 01-01-2007), to be
allocated by the Board of Directors amongst its members, and to grant an attendance
fee of €250 per meeting of the Board of Directors and advisory committees.
Pursuant to Article 15 of the Articles of Association of Fluxys Belgium, the Board of
Directors is authorised to pay a special remuneration to directors who carry out special
duties for the entity. The Board also has the right to reimburse travel expenses and costs
incurred by the members of the Board of Directors.
The Fluxys Belgium group has not granted any loans to directors. In addition, the directors
have not entered into unusual or abnormal transactions with the group. No shares or
share options have been granted to the directors.
For further information, the reader should refer to the Corporate Governance Declaration
in the directors' report and to Note 8 'Related parties' for the breakdown of remuneration
by category.
Note 10. Events after the balance sheet date
Fluxys Belgium and the CREG agreed in February 2024 to propose to the market through
a public consultation adjustments to the tariff methodology for the natural gas
transmission system, the natural gas storage facility and the LNG facility for the 2024-2027
regulatory period.
The tariff methodology, adopted in June 2022, provides for the use of a risk-free rate of
1.68% to calculate the margin for the four years of the 2024-2027 regulatory period.
Against a backdrop of high interest rate volatility, an overall upward trend over the past
two years, and particularly high inflation in 2022, a number of changes are needed to
guarantee the system operators a fair return on capital invested in regulated assets, and
enable them to make the investments required to carry out their missions.
The public consultation on the changes to the tariff methodology will run from March 14
to April 14, 2024. The impact of these proposed changes will be covered by the
adjustment account. The tariffs set by the CREG for the period 2024-2027 therefore
remain unchanged at this stage.
254
Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
255
Statutory accounts of Fluxys Belgium SA
according to Belgian GAAP
Given the significance of the equity as well as the revenue of the parent entity in the
consolidated financial statements, the publication of the detailed version of the annual
accounts and the notes to the accounts in this brochure would, in the majority of cases,
be redundant given the explanations found in the consolidated accounts.
Pursuant to Article 3:17 of the Companies Code, the decision was made to present only
an abridged version of the Fluxys Belgium SA statutory annual accounts.
The statutory auditor issued an unqualified audit opinion on the annual accounts of Fluxys
Belgium SA.
The statutory accounts of Fluxys Belgium SA and the audit opinion have been filed with
the National Bank of Belgium. They are available on the Fluxys Belgium website
(www.fluxys.com/belgium) and can also be obtained free of charge upon request at the
following address:
Fluxys Belgium SA
Communication Department
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256
Balance sheet
Assets In thousands of €
31-12-2023
31-12-2022
Formation expenses 1,107
1,265
Fixed assets 1,447,863
1,432,702
Intangible assets 25,789
22,019
Property, plant and equipment 1,332,255
1,325,694
Financial fixed assets 89,819
84,989
Current assets 1,041,285
1,114,083
Amounts receivable after more than one year 21,496
15,144
Stock and contracts in progress 49,710
61,445
Amounts receivable within one year 93,272
156,913
Cash investments 0
0
Cash at bank and in hand 856,221
867,339
Deferred charges and accrued income 20,586
13,242
Total 2,490,255
2,548,050
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257
Equity and liabilities In thousands of €
31-12-2023
31-12-2022
Equity 434,959
456,783
Capital 60,272
60,272
Share premium account 38
38
Revaluation surpluses 230,856
258,498
Reserves 10,814
10,927
Accumulated profits (losses) 101,654
93,084
Capital subsidies 31,325
33,964
Provisions and deferred taxes 15,716
15,361
Provisions for liabilities and charges 4,450
3,177
Deferred tax 11,266
12,184
Amounts payable 2,039,580
2,075,906
Amounts payable after more than one year 896,932
921,383
Amounts payable within one year 244,804
560,408
Accrued charges and deferred income 897,844
594,115
Total 2,490,255
2,548,050
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Income statement
Income statement In thousands of €
31-12-2023
31-12-2022
Operating income 653,561
951,458
Operating charges 579,348
864,397
Operating profit 74,213
87,061
Financial income 72,111
50,418
Finance costs 48,709
30,233
Net financial income 23,402
20,185
Earnings before taxes 97,616
107,246
Transfer from deferred taxes 1,184
1,220
Income tax expenses -19,444
-24,546
Net profit/loss for the period 79,356
83,920
Transfer to untaxed reserves 114
114
Profit for the period available for appropriation 79,470
84,034
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259
Profit/loss appropriation
Appropriation account In thousands of €
31-12-2023
31-12-2022
Profit to be appropriated 172,554
163,286
Profit for the period available for appropriation 79,470
84,034
Profit carried forward from the previous period 93,084
79,252
Transfer from equity 27,470
28,167
From reserves 27,470
28,167
Transfer to equity 0
0
To the legal reserve 0
0
To the other reserves 0
0
Result to be carried forward 101,654
93,084
Profit to be carried forward 101,654
93,084
Profit to be distributed 98,369
98,369
Dividends 98,369
98,369
If the above proposal is accepted and taking tax
requirements into account, the annual dividend,
net of withholding tax, could be set at:
€ 0.980
€ 0.980
In 2023, no advance on the dividend was paid. The gross unit dividend to be paid out for
fiscal year 2023 is €1.40 per share (€0.980 net). It will be payable from 22 May 2024.
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Capital at the end of the period
Capital at the end of the period
31-12-2023
Subscribed capital
At the end of the previous period
60,272
At the end of the period
60,272
Capital represented by
Registered shares
62,351,736
Dematerialised shares
7,911,765
Structure of shareholders
Declarant
Date of
declaration
Type
Number of
voting rights
declared
%
Fluxys 13-12-2017 B/D 63,237,240 90,00
The Belgian State holds one specific share.
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261
Income taxes
Income taxes In thousands of €
31-12-2023
Breakdown of heading 670/3
Income taxes on the result of the current period
21,578
Taxes and withholding taxes due or paid 23,250
Excess of income tax prepayments -1,672
Estimated additional taxes 0
Income taxes on previous periods 0
Additional taxes due or paid 0
Additional taxes (estimated or provided for) 0
Reconciliation between profit before taxes and estimated taxable profit
Profit before taxes 97,616
Permanent differences: -11,302
Definitively taxed income -41,689
Non-deductible expenses and hidden reserves 5,500
Notional interest 0
Taxable reserves 27,470
Depreciation of financial fixed assets 0
Transfer from untaxed reserves 114
Transfer from deferred taxes 1,184
Deductible innovation revenue -9,403
Non-deductible provisions 0
Hidden reserves 815
Total 86,313
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Workforce
ONSS N°: 030012851238
Joint Commission N°: 326
Headcount
A. Employees recorded in the personnel register
1a. During the current period
Total
Men
Women
Average number of employees
Full time
782.2
669.9
112.3
Part-time 126.2
74.8
51.4
Total in full-time equivalents (FTE) 878.2
727.10
151.10
Number of hours actually worked
Full time 1,184,045
1,012,749
171,296
Part-time 141,810
82,841
58,969
Total 1,325,855
1,095,590
230,265
Employee expenses
Full time 112,435,716
99,099,883
13,335,833
Part-time 17,164,215
11,060,058
6,104,157
Total 129,599,931
110,159,941
19,439,990
Advantages in addition to wages 2.104.288
1.788.645
315.643
1b. During the previous period
M(rrrD Total
Men
Women
Average number of employees (FTE) 836.0
695.0
141.0
Number of hours actually worked 1,253,508
1,041,838
211,670
Employee expenses 121,872,900
103,591,965
18,280,935
Advantages in addition to wages 1,905,640
1,619,794
285,846
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263
2. At the closing of the period
Full time
Part-time
Total FTE*
a. Employees recorded in the personnel register 795
125
890.6
b. By nature of the employment contract
Contract for an indefinite period 779
125
874.6
Contract for a definite period 16
0
16.0
Contract for execution of specifically assigned work 0
0
0.0
Replacement contract 0
0
0.0
c. According to gender and study level
Men 677
77
736.10
Primary education 0
0
0.0
Secondary education 267
41
298.5
Higher non-university education 167
14
178.10
University education 243
22
259.5
Women 118
48
154.5
Primary education 0
0
0.0
Secondary education 24
7
29.1
Higher non-university education 47
23
64.2
University education 47
18
61.2
d. By professional category
Management 307
37
335.4
Employees 488
88
555.2
Workers 0
0
0.0
Other 0
0
0.0
*full-time equivalent
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B. Hired temporary staff and personnel placed at the enterprise’s disposal
During the current period
Hired temporary
staff
Personnel placed at
disposal of the entity
Average number of persons employed 6.7
0
Number of hours actually worked 13,295
0
Costs for the enterprise 486,523
0
Table of movements in personnel during the period
Full time
Part time
Total FTE*
Entries
a. Employees recorded in the personnel register
93
0
93.0
b. By nature of the employment contract
Contract for an indefinite period 81
0
81.0
Contract for a definite period 12
0
12.0
Contract for execution of specifically assigned work 0
0
0.0
Replacement contract 0
0
0.0
Exits
a. Employees whose contract end-date has been
recorded in the personnel register in this financial year
57
6
61.5
b. By nature of the employment contract
Contract for an indefinite period
46
6
50.5
Contract for a definite period
11
0
11.0
Contract for execution of specifically assigned work
0
0
0.0
Replacement contract
0
0
0.0
c. By reason of termination of contract
Retirement
11
4
13.9
Early retirement
0
0
0.0
Dismissal
8
0
8.0
Other reason
38
2
39.6
Of which: the number of persons who continue to
render services to the company at least part-
time on a
self-employed basis
0
0
0.0
*full-time equivalent
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265
Information on training provided to employees during the period
Men
Women
Initiatives in formal continued professional development at the
expense of the employer
Number of employees involved
727
162
Number of actual training hours 26,460
4,270
Net costs for the enterprise 4,287,867
703,281
Of which gross costs directly linked to training 4,287,867
703,281
Of which fees paid and payments to collective funds 0
0
Of which subsidies and other financial advantages received (to
deduct)
0
0
Total of initiatives of less formal or informal professional training at the
expense of the employer
Number of employees involved 631
158
Number of actual training hours 6,342
2,205
Net costs for the enterprise 539,579
179,312
Total of initiatives of initial professional training at the expense of the
employer
Number of employees involved 0
0
Number of actual training hours 0
0
Net costs for the enterprise 0
0
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Statutory auditor’s report and
declaration by responsible
persons
Statutory auditor’s report to the General
Meeting of Fluxys Belgium NV for the financial
year ended 31 December 2023
In the context of the statutory audit of the Consolidated Financial Statements) of Fluxys
Belgium NV (the “Company”) and its subsidiaries (together the “Group”), we report to
you as statutory auditor. This report includes our opinion on the consolidated balance
sheet as at 31 December 2023, the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year ended 31 December 2023
and the disclosures including material accounting policy information (all elements
together the “Consolidated Financial Statements”) as well as our report on other legal
and regulatory requirements. These two reports are considered one report and are
inseparable.
We have been appointed as statutory auditor by the shareholders’ meeting of 10 May
2022, in accordance with the proposition by the Board of Directors following
recommendation of the Audit Committee and following recommendation of the
workers’ council. Our mandate expires at the shareholders’ meeting that will deliberate
on the Consolidated Financial Statements for the year ending 31 December 2024. We
performed the audit of the Consolidated Financial Statements of the Group during 5
consecutive years.
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267
Report on the audit of the Consolidated Financial Statements
Unqualified opinion
We have audited the Consolidated Financial Statements of Fluxys Belgium NV, that
comprise of the consolidated balance sheet on 31 December 2023, the consolidated
income statement, the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash
flows of the year and the disclosures ,including material accounting policy information,
which show a consolidated balance sheet total of € 3.358,6 million and of which the
consolidated income statement shows a profit for the year of € 77,4 million.
In our opinion, the Consolidated Financial Statements give a true and fair view of the
consolidated net equity and financial position as at 31 December 2023, and of its
consolidated results for the year then ended, prepared in accordance with the
International Financial Reporting Standards as adopted by the European Union (“IFRS”)
and with applicable legal and regulatory requirements in Belgium.
Basis for the unqualified opinion
We conducted our audit in accordance with International Standards on Auditing
(“ISA’s”) applicable in Belgium. In addition, we have applied the ISA's approved by the
International Auditing and Assurance Standards Board (“IAASB”) that apply at the current
year-end date and have not yet been approved at national level. Our responsibilities
under those standards are further described in the “Our responsibilities for the audit of the
Consolidated Financial Statements” section of our report.
We have complied with all ethical requirements that are relevant to our audit of the
Consolidated Financial Statements in Belgium, including those with respect to
independence.
We have obtained from the Board of Directors and the officials of the Company the
explanations and information necessary for the performance of our audit and we believe
that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Consolidated Financial Statements of the current
reporting period.
These matters were addressed in the context of our audit of the Consolidated Financial
Statements as a whole and in forming our opinion thereon, and consequently we do not
provide a separate opinion on these matters.
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Calculation of the net profit under the regulatory framework
Description
As described in chapter ‘Legal and regulatory framework’ of the annual report and note
5.12 of the Consolidated Financial Statements, a regulated tariff mechanism is applied to
the transportation of gas (gas flows within Belgium and border-to-border flows), the
storage of gas and for LNG terminalling activities. For these activities, the net result is
determined by applying calculation methods imposed by the Belgian regulator, the
Commission for Electricity and Gas Regulation (the “CREG”) (together the “Tariff
Mechanism”).
The Tariff Mechanism is based on calculation methods that are complex and that require
the use of parameters (the Beta of the regulated activity of the Group, return on equity,
...), and of accounting data of the regulated activities (the Regulated Asset Base, the
regulated equity, capital expenditures (“CAPEX”) and subsidies received). In addition, for
extension investments on LNG installations performed since 2004, the Tariff Mechanism
provides in a specific calculation method whereby the return is determined following an
IRR formula (Internal Rate of Return) as determined by the CREG.
The Tariff Mechanism makes a distinction between manageable and non-manageable
costs. Deviations from the estimated value of non-manageable costs are fully allocated
to the regulatory assets or liabilities (future tariffs). The manageable costs are costs over
which the Group has control, and whereby deviations are distributed between the
shareholders of the Group and future tariffs.
Therefore, the calculation methods of the Group’s net result are complex and require
judgements from management, more particularly with respect to the use of correct
accounting data and parameters as imposed by the regulator. The use of incorrect
accounting data, and deviations in assumptions, can have a material impact on the
Group’s net result.
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How the matter was addressed in our audit
Amongst others, we have performed the following procedures:
● Assessing the design and implementation of key internal controls relating to the
calculation of the net result, including those related to (i) the completeness and
accuracy of the underlying data used in the calculation and (ii) management
review controls;
● Evaluating the adequate and consistent classification of operating costs by
nature (manageable and non-manageable) as described in the Tariff
Mechanism;
● Performing independent recalculations of the net results for the respective
regulated activities based on underlying internal documentation and externally
available information, and taking into account the formulas as described in the
Tariff Mechanism;
● Evaluating communication with the CREG, including assessment of the
accounting implications of communications and decisions taken by the CREG;
● Assessing the adequacy of the disclosures (chapter ‘Legal and regulatory
framework’ of the annual report and note 5.12 in the Consolidated Financial
Statements).
Capitalisation and useful life of property, plant and equipment
Description
Property, plant and equipment amounts to 56% of the consolidated balance sheet of the
Group, with a total capital expenditure (‘CAPEX’) of € 167,7 million in 2023 and a net
book value of € 1.873,3 million as at 31 December 2023. Property, plant and equipment
form the most important basis for the Regulated Asset Base (“RAB”). Depreciations are
classified as non-manageable operating cost and thus have an important impact on the
tariffs. The economical useful life, as accepted by the regulator CREG, impacts the
depreciations.
As a result of the importance of property, plant and equipment on the total balance
sheet and on the regulated result, and given its relevance to the users of the
Consolidated Financial Statements, this topic is considered a key audit matter.
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How the matter was addressed in our audit
Amongst others, we have performed the following procedures:
● Assessing the design and implementation of key internal controls relating to the
calculation of the net result, including those related to (i) the completeness and
accuracy of the underlying data used in the calculation and (ii) management
review controls;
● Evaluating the adequate and consistent classification of operating costs by nature
(manageable and non-manageable) as described in the Tariff Mechanism;
● Performing independent recalculations of the net results for the respective
regulated activities based on underlying internal documentation and externally
available information, and taking into account the formulas as described in the
Tariff Mechanism;
Evaluating communication with the CREG, including assessment of the
accounting implications of communications and decisions taken by the CREG;
● Assessing the adequacy of the disclosures (chapter ‘Legal and regulatory
framework’ of the annual report and note 5.12 in the Consolidated Financial
Statements).
Responsibilities of the Board of Directors for the preparation of the
Consolidated Financial Statements
The Board of Directors is responsible for the preparation of the Consolidated Financial
Statements that give a true and fair view in accordance with IFRS and with applicable
legal and regulatory requirements in Belgium and for such internal controls relevant to
the preparation of the Consolidated Financial Statements that are free from material
misstatement, whether due to fraud or error.
As part of the preparation of Consolidated Financial Statements, the Board of Directors is
responsible for assessing the Company’s ability to continue as a going concern, and
provide, if applicable, information on matters impacting going concern, The Board of
Directors should prepare the financial statements using the going concern basis of
accounting, unless the Board of Directors either intends to liquidate the Company or to
cease business operations, or has no realistic alternative but to do so.
Our responsibilities for the audit of the Consolidated Financial
Statements
Our objectives are to obtain reasonable assurance whether the Consolidated Financial
Statements are free from material misstatement, whether due to fraud or error, and to
express an opinion on these Consolidated Financial Statements based on our audit.
Reasonable assurance is a high level of assurance, but not a guarantee that an audit
conducted in accordance with the ISA’s will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Consolidated Financial
Statements.
In performing our audit, we comply with the legal, regulatory and normative framework
that applies to the audit of the Consolidated Financial Statements in Belgium. However, a
statutory audit does not provide assurance about the future viability of the Company
and the Group, nor about the efficiency or effectiveness with which the board of
directors has taken or will undertake the Company's and the Group’s business operations.
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Our responsibilities with regards to the going concern assumption used by the board of
directors are described below.
As part of an audit in accordance with ISAs, we exercise professional judgment and we
maintain professional skepticism throughout the audit. We also perform the following
tasks:
•
identification and assessment of the risks of material misstatement of the
Consolidated Financial Statements, whether due to fraud or error, the planning
and execution of audit procedures to respond to these risks and obtain audit
evidence which is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting material misstatements resulting from fraud is higher than when
such misstatements result from errors, since fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
•
obtaining insight in the system of internal controls that are relevant for the audit
and with the objective to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control;
•
evaluating the selected and applied accounting policies, and evaluating the
reasonability of the accounting estimates and related disclosures made by the
Board of Directors as well as the underlying information given by the Board of
Directors;
•
conclude on the appropriateness of the Board of Directors’ use of the going-
concern basis of accounting, and based on the audit evidence obtained, whether
or not a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s or Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the Consolidated
Financial Statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on audit evidence obtained up to the date of the
auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going-concern;
•
evaluating the overall presentation, structure and content of the Consolidated
Financial Statements, and evaluating whether the Consolidated Financial Statements
reflect a true and fair view of the underlying transactions and events
We communicate with the Audit Committee within the Board of Directors regarding,
among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during
our audit.
Because we are ultimately responsible for the opinion, we are also responsible for
directing, supervising and performing the audits of the subsidiaries. In this respect we
have determined the nature and extent of the audit procedures to be carried out for
group entities.
We provide the Audit Committee within the Board of Directors with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
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From the matters communicated with the Audit Committee within the Board of Directors,
we determine those matters that were of most significance in the audit of the
Consolidated Financial Statements of the current period and are therefore the key audit
matters. We describe these matters in our report, unless the law or regulations prohibit
this.
Report on other legal and regulatory requirements
Responsibilities of the Board of Directors
The Board of Directors is responsible for the preparation and the content of the Board of
Directors’ report on the Consolidated Financial Statements.
Responsibilities of the auditor
In the context of our mandate and in accordance with the additional standard to the
ISA’s applicable in Belgium, it is our responsibility to verify, in all material respects, the
Board of Directors’ report on the Consolidated Financial Statements, the non-financial
information attached to the Board of Directors’ report, as well as to report on these
matters.
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Aspects relating to Board of Directors’ report and other information
included in the annual report
In our opinion, after carrying out specific procedures on the Board of Directors’ report,
the Board of Directors’ report is consistent with the Consolidated Financial Statements
and has been prepared in accordance with article 3:32 of the Code of companies and
associations.
In the context of our audit of the Consolidated Financial Statements, we are also
responsible to consider whether, based on the information that we became aware of
during the performance of our audit, the Board of Directors’ report and other information
included in the annual report, being:
● Chapter ‘Legal and regulatory framework’
● Financial situation: consolidated key financial data
contain any material inconsistencies or contains information that is inaccurate or
otherwise misleading. In light of the work performed, there are no material inconsistencies
to be reported.
The non–financial information required by article 3:32, § 2, of the Code of companies
and associations has been included in the annual report. The Company has prepared
the Group’s non-financial information based on the reporting guidelines of the Global
Reporting Initiative standards (“GRI”). However, in accordance with article 3:80 § 1, 5° of
the Code of companies and associations, we do not express any opinion on the question
whether this non-financial information has been established in accordance with the GRI
framework.
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Independence matters
Our audit firm and our network have not performed any services that are not compatible
with the audit of the Consolidated Financial Statements and have remained
independent of the Company during the course of our mandate.
The fees related to additional services which are compatible with the audit of the
Consolidated Financial Statements as referred to in article 3:65 of the Code of
companies and associations were duly itemized and valued in the notes to the
Consolidated Financial Statements.
European single electronic format (“ESEF”)
In accordance with the standard on the audit of the conformity of the financial
statements with the European single electronic format (hereinafter "ESEF"), we have
carried out the audit of the compliance of the ESEF format with the regulatory technical
standards set by the European Delegated Regulation No 2019/815 of 17 December 2018
(hereinafter: "Delegated Regulation").
The board of directors is responsible for the preparation, in accordance with the ESEF
requirements, of the consolidated financial statements in the form of an electronic file in
ESEF format (hereinafter 'the digital consolidated financial statements') included in the
annual financial report available on the portal of the FSMA
(https://www.fsma.be/en/data-portal).
It is our responsibility to obtain sufficient and appropriate supporting evidence to
conclude that the format and markup language of the digital consolidated financial
statements comply in all material respects with the ESEF requirements under the
Delegated Regulation.
Based on the work performed by us, we conclude that the format and tagging of
information in the digital consolidated financial statements of Fluxys Belgium NV per 31
December 2023 included in the annual financial report available on the portal of the
FSMA (https://www.fsma.be/en/data-portal) are, in all material respects, in accordance
with the ESEF requirements under the Delegated Regulation.
Other communications
This report is consistent with our supplementary declaration to the Audit Committee as
specified in article 11 of the regulation (EU) nr. 537/2014.
Diegem, 28 March 2024
EY Bedrijfsrevisoren BV
Statutory auditor
Represented by
Wim Van Gasse *
Partner
*Acting on behalf of a BV/SRL
24WVG0055
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Declaration by responsible persons
Declaration regarding the financial year ended 31 December 2023
We hereby attest that to our knowledge:
● Fluxys Belgium’ financial statements, drawn up in accordance with the applicable
accounting standards, give a true and fair view of the company's assets, liabilities,
financial position and profit or loss as well as those of the companies included in the
consolidation scope;
● the annual report gives a true and fair view of the development and performance of
the business and of the position of the company itself and of the companies
included in the consolidation scope, together with a description of the principal risks
and uncertainties that they face.
Brussels, 28 March 2024
Christian Leclercq Pascal De Buck
Member of the Executive Board Managing Director
Chief Financial Officer Chief Executive Officer
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Glossary
Pertinence of published financial ratios
The Fluxys Belgium group continually evaluates its financial solidity, in particular using the
following financial ratios:
● Solvency: The ratio between net financial debt and the sum of equity and net financial
debt indicates the solidity of the Fluxys group’s financial structure.
● Interest coverage: The ratio between the FFO, before interest expenses, and interest
expenses represents the group’s capacity to cover its interest expenses thanks to its
operating activities.
● Net financial debt/extended RAB: This ratio expresses the share of the extended RAB
financed by external debt.
● FFO/Net financial debt: This ratio is used to determine the group’s capacity to pay off
its debts based on cash generated by its operating activities.
● RCF/Net financial debt: This ratio is used to determine the group’s capacity to pay off
its debts based on cash generated by its operating activities after payment of
dividends.
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Definition of indicators
Other property, plant and equipment investments outside the RAB
Average combined investments in property, plant and equipment linked to the
extensions to the Zeebrugge LNG terminal and in unregulated activities.
Net finance costs
Interest charges less financial income from lease contracts, interest on investments and
cash equivalents and other interest received, excluding interest on regulatory assets and
liabilities.
Interest expenses
Interest expenses on debts (including interest charges on leasing debts), less interest on
regulatory liabilities.
EBIT
Earnings Before Interests and Taxes or operating profit/loss from continuing operations
plus the result of investments accounted for by the equity method and the dividends
received from unconsolidated entities. EBIT is used to monitor the operational
performance of the group over time.
EBITDA
Earnings Before Interests, Taxes, Depreciation and Amortisation or operating profit/loss
from continuing operations, before depreciation, amortisation, impairment and
provisions, plus the result of investments accounted for by the equity method and the
dividends received from unconsolidated entities. EBITDA is used to monitor the
operational performance of the group over time, without considering non-cash
expenses.
Net financial debt
Interest-bearing liabilities (including leases), less regulatory liabilities, cash linked to early
refinancing transactions and 75% of the balance of cash, cash equivalents and short-
and long-term cash investments (the other 25% is considered as reserve for operational
needs and therefore not available for investments). This indicator gives an idea about the
amount of interest bearing debt that would remain if all available cash would be used to
reimburse loans. In order to reflect reality more accurately, the exceptional solidarity
contribution of €300 million has been removed from the cash position when calculating
net financial debt. Indeed, this debt was recognised on 31 December whereas it was
paid in January 2023, which has a significant influence on the calculation.
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FFO
Funds from Operations or profit/loss from continuing operations, excluding changes in
regulatory assets and liabilities, before depreciation, amortisation, impairment and
provisions, to which dividends received from associates and joint ventures and
unconsolidated entities are added, and from which net financial expenses and current
tax are deducted. This ratio indicates the cash generated by operational activities and
thus the capacity of the group to reimburse its debts and to invest but also to pay
dividends.
RAB
Average Regulatory Asset Base, or average value of the regulated asset base for the
year. The RAB is a regulatory concept which contains the assets on which a regulatory
return is granted, as regulated by the CREG.
Extended RAB
Total of the RAB and other property, plant and equipment investments outside the RAB.
RCF
Retained Cash-Flow or FFO, less dividends paid. This ratio indicates the cash generated
by operational activities, but after payment of the dividends. It thus shows the remaining
net capacity of the group to reimburse its debts and to invest.
WACC
Weighted Average Cost of Capital, which reflects the authorised return on RAB under the
regulation.
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
279
Fluxys Belgium consolidated income
statement in thousands of €
31-12-2023
31-12-2022
Notes
Operating profit/loss 129,570
147,305
Depreciations 166,894
168,051
Provisions 745
-6,993
Impairment losses -11,400
14,804
Earnings from associates and joint ventures 0
0
Dividends from unconsolidated entities 0
0
EBITDA in thousands of € 285,809
323,167
Fluxys Belgium consolidated income
statement in thousands of €
31-12-2023
31-12-2022
Notes
Operating profit/loss 129,570
147,305
Earnings from associates and joint ventures 0
0
Dividends from unconsolidated entities 0
0
EBIT in thousands of € 129,570
147,305
Fluxys Belgium consolidated income
statement in thousands of €
31-12-2023
31-12-
2022
Notes
Financial income from lease contracts 39
56
Interest income on investments, cash and
cash equivalents
32,487
3,970
Other interest income 4,202
83
Borrowing interest costs -65,909
-39,292
Borrowing interest cost on leasing -827
-890
Interest on regulatory assets and liabilities 32,441
5,230
Net financial expenses in thousands of € 2,433
-
30,843
Fluxys Belgium consolidated income statement
in thousands of €
31-12-2023
31-12-
2022
Notes
Borrowing interest costs -65,909
-39,292
Borrowing interest costs on leasing -827
-890
Interest on regulatory liabilities 32,441
5,230
Interest expenses in thousands of € -34,295
-34,952
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Fluxys Belgium consolidated income statement
in thousands of €
31-12-2023
31-12-2022
Notes
Operating profit/loss 129,570
147,305
Operating revenue - Movements in regulatory
assets and liabilities
291,104
456,225
Depreciations 166,894
168,051
Provisions 745
-6,993
Impairment losses -11,400
14,804
Inflows related to associates and joint ventures 0
0
Dividends from unconsolidated entities 0
0
Net financial expenses 2,433
-30,843
Current tax -28,235
-35,730
FFO in thousands of €
551,111
712,819
Fluxys Belgium consolidated income
statement in thousands of €
31-12-2023
31-12-2022
Notes
FFO 551,110
712,819
Dividends paid -98,369
-96,964
E –
consolidated statement
of cash flows
RCF in thousands of 452,741
615,855
Fluxys Belgium consolidated balance
sheet in thousands of €
31-12-2023
31-12-2022
Non-current interest-bearing liabilities 1,070,311
1,115,772
Current interest-bearing liabilities 55,336
56,269
Cash investments (75%) -24,749
-19,585
Cash and cash equivalents (75%) -801,170
-578,031
Other financial assets (75%) -80.324
-80,625
Net financial debt in thousands of € 219,404
493,800
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
281
Fluxys Belgium consolidated balance
sheet in millions of €
31-12-2023
31-12-2022
Transmission 2,046,6
2,059,1
Storage 228,0
228,0
LNG terminalling 311,0
305,7
RAB in millions of € 2,585,6
2,592,8
Other tangible investments outside RAB
432,9
417,7
Extended RAB in millions of € 3,018,6
3,010,6
In Belgium, the Regulated Asset Base (RAB) is determined based on the average book
value of the fixed assets for the period, plus essentially the accounting amortisations
accumulated on the revaluation surpluses. The calculation is in line with the tariff
methodology published by the CREG.
Welfare contribution in thousands of € 31-12-2023
31-12-2022
Notes
Dividends paid 98,369
96,264
D. Consolidated statement
of changes in equity
Financial income -37,606
-4,589
4.3
Financial expenses 69,950
40,805
4.4
Goods & consumables 8,895
5,582
4.2.1
Services & miscellaneous goods 179,845
465,521
4.2.2
Employee benefits 135,240
132,931
4.2.3
Taxes and duties paid 26,600
35,066
4.5.1
Lease agreements 5,579
5,641
4.2.5 & 4.4
Welfare contribution in thousands of € 486,872
777,221
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282
Shareholder’s guide
Shareholder’s calendar
14.05.2024 General Meeting
22.05.2024 Payment of dividend
26.09.2024
Press release from the Board of Directors on the half-yearly results in
accordance with IFRS
Payment of dividend
The gross dividend per share amounts to €1.40 for the 2023 financial year (€0.980 net),
unchanged compared to 2022. The recurring dividend is primarily determined on the
basis of equity invested, the financial structure, the risk-free interest rates.
Evolution of Fluxys Belgium share price – BEL 20
(Share price 13-12-2001 = base 100%)
0
50
100
150
200
250
300
350
400
450
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
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2022
2023
Bel-20 Fluxys Belgium share
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Fluxys Belgium | Regulated information | Integrated Annual Report 2023 | Financial situation
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FSC
TO BE DONE
Questions about accounting data
Filip De Boeck
+32 2 282 79 89 – filip.deboeck@fluxys.com
Press service
+32 471 95 00 24 – press@fluxys.com
Creation and realisation
www.chriscom.eu
Photos
Will Anderson, Serch Carrière, Renaud Coppens,
Fabrice Debatty, Julien De Wilde, Frédéric Garrido-
Ramirez, Jasper Leonard, Christophe Licoppe, Nicolas
Lobet, Valentyna Rostovikova, David Samyn
Fluxys Belgium
Avenue des Arts 31 – 1040 Brussels
+32 2 282 72 11 – www.fluxys.com/belgium
BTW BE 0402.954.628 – RPM Brussels
D/2024/9484/3
Responsible publisher
Leen Vanhamme
Avenue des Arts 31 – 1040 Brussels
This integrated annual report is also available in
Dutch and French. Contact our communication
service to obtain a copy: communication@fluxys.com
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@FluxysBelgiumFR
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