CEZ Group 2021
Sustainability
Report
CEZ Group 2021 Sustainability Report
Table of Contents
Statutory Declaration | 4 | 3.3 | Environmental Conservation | 27 | |
3.3.1 | Water Management | 27 | |||
1 | Foreword | 7 | 3.3.2 | Biodiversity | 29 |
3.3.3 | EMS - Environmental Management System | 31 | |||
3.3.4 | Air Pollution Monitoring | 31 | |||
1.1 | Statement from the CEO | 7 | |||
1.2 | Statement from the CSO | 10 | 3.4 | Energy Transition | 32 |
3.4.1 | Transition to Renewable Energy: Hydro, Wind, Solar 33 | ||||
2 | Introduction | 12 | 3.4.2 | Transition to Emission-free Energy: Nuclear Power | 34 |
3.4.3 | Transition to a Cleaner Energy: Gas | 34 | |||
2.1 | CEZ Group Business Environment | 12 | 3.5 | Innovative Solutions | 35 |
2.1.1 | CEZ Group's Mission and Vision | 12 | 3.5.1 | ČEZ ESCO | 35 |
2.1.2 | Strategic VISION 2030-Clean Energy of Tomorrow | 12 | 3.5.2 | Smart Cities and Digitalization | 35 |
2.1.3 ESG and Sustainable Development | 3.5.3 | Research and Development | 36 | ||
Social Objectives | 13 | 3.5.4 | Inven Capital | 36 | |
3.5.5 | Partnerships for Innovation | 37 | |||
2.2 | Stakeholder Management and Materiality Matrix | 14 | 3.5.6 | E-mobility | 37 |
2.2.1 | Stakeholder Engagement | 14 | 3.5.7 | Energy Consumption and Reduction | |
2.2.2 | Materiality Assessment | 14 | of Energy Intensity | 37 | |
2.2.3 | Materiality Matrix | 15 | |||
3.6 | EU Taxonomy KPI Report | 39 | |||
3 | Environmental | 17 | 3.6.1 | General Principles | 40 |
3.6.2 | Contextual Information on Methodology | 40 | |||
3.6.3 | Implementation at CEZ Group | 41 | |||
3.1 | Decarbonization | 19 | 3.6.4 | KPI Turnover | 42 |
3.1.1 | Scope 1 | 20 | 3.6.5 | KPI Capex | 42 |
3.1.2 | Scope 2 | 20 | 3.6.6 | KPI Opex | 42 |
3.1.3 | Scope 3 | 21 | 3.6.7 | Noneligible Activities - Voluntary Disclosure | 43 |
3.1.4 | Emission Intensity Reduction | 21 | |||
3.1.5 | Ozone-Depleting Substances | 22 | |||
3.2 | Waste, Emissions, and Pollution | 23 | |||
3.2.1 | Emissions of Pollutants | 23 | |||
3.2.2 | Waste and Natural Resources | 24 |
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CEZ Group 2021 Sustainability Report / Table of Content
4 | Social | 45 | 5 | Governance | 65 |
4.1 | Community Relations | 47 | 5.1 | CEZ Group Corporate Governance | 67 |
4.1.1 | Corporate Citizenship | 47 | 5.1.1 | Governance Bodies | 67 |
4.1.2 | Human Rights | 48 | 5.1.2 | Sustainability Governance and ESG Management | 67 |
4.2 | CEZ Foundation | 49 | 5.2 | Climate-related Risk Management and TCFD | 70 |
4.2.1 Programs and activities of CEZ Foundation in 2021 49 | |||||
5.3 | Diversity and Equal Opportunity | 72 | |||
4.3 | Human Capital | 50 | 5.3.1 | Women in Leadership Positions | 73 |
4.3.1 | Responsible Employer | 50 | 5.3.2 Gender Pay Gap | 73 | |
4.3.2 | Employee Training and Development | 53 | |||
4.3.3 | Training of Suppliers and Contractors | 55 | 5.4 | Business Conduct | 74 |
4.3.4 | Requalification | 56 | 5.4.1 | Code of Conduct and Ethics in CEZ Group | 74 |
4.3.5 Health and Safety | 57 | 5.4.2 | Sustainable Supply Chain | 77 | |
5.4.3 | Tax Governance | 78 | |||
4.4 | Customer Orientation | 61 | 5.4.4 Cyber Security and Information Privacy | 79 | |
4.4.1 | Approach to Customers | 61 | |||
4.4.2 | Net Promoter Score | 62 | 6 | GRI Content Index | |
4.4.3 | Digitalization | 63 | |||
4.4.4 Ombudsman | 63 | and Non-Financial Data 2021 | 82 | ||
6.1 | Selected Indicators | 83 | |||
6.2 | Other Indicators | 84 | |||
6.3 | Biodiversity Indicators | 93 | |||
Independent Auditor's Report | 98 |
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CEZ Group 2021 Sustainability Report / Introduction
Statutory Declaration
To the best of our knowledge, the Sustainability Report gives an accurate and fair overview of the non-financial data for 2021, sustainable business strategy, and targets set for the future development of CEZ Group.
Prague, June 27, 2022
Daniel Beneš | Pavel Cyrani | Kateřina Bohuslavová |
Chairman of the | Vice-Chairman | Chief Sustainability Officer |
Board of Directors, | of the Board of Directors, | of CEZ Group |
ČEZ, a. s. | ČEZ, a. s. |
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CEZ Group 2021 Sustainability Report
1 Foreword
1.1 Statement from the CEO
GRI 102-14
Dear readers,
2021 was a turbulent year. While we focused on accelerating our sustainable business strategy, our resolve was tested. Persisting issues such as climate change and COVID-19 continued to afflict us. Unexpected events presented significant challenges. In July, South Moravia was hit by a tornado, and in October, alternative energy suppliers were forced to announce their closures, sending almost a million customers to competent suppliers of the last resort. So how did we fare?
Sustainability as the strategic core of our business
CEZ Group has always been a responsible corporate citizen. We recognize, however, the challenges of the modern era and the need for energy transformation. That is why we decided to step up. We intertwined our sustainability strategy with our business core and corporate strategy on our way towards a more stable and safer future. This accelerated trajectory is called VISION 2030-Clean Energy of Tomorrow. It centers our business around ESG principles. It defines specific and measurable targets and clear deadlines that we announced publicly in a dialogue with our stakeholders.
The focus of our Environmental pillar centers around accelerated decarbonization: we have committed to transforming our generation portfolio to a low-emission one and to achieving carbon neutrality. We will reduce our greenhouse gas emissions, SO2 emissions and NOX emissions by more than 50% by 2030. We will build 6 GW of renewables by 2030, as we phase out coal-fired heat generation by the same year. Coal-fired
power generation in Czechia is likely to be phased out by 2033 at the latest, given the government's priorities, while current market conditions indicate that CEZ Group's coal-fired facilities will operate until 2030 at the latest.
We readjusted the target year for reaching net-zero emissions reduction to 2040 in May 2022. This decision was motivated by three drivers: (1) the annual review of VISION 2030-Clean Energy of Tomorrow, (2) the launch of the REPowerEU plan, and (3) the proposal of the European Commission to set stricter goals within the Fit for 55 package.
In 2021, we shut down one of the largest coal-fired power plants in Czechia - Energotrans III. We decreased year-on-year emissions significantly: emission intensity for electricity generation (in tCO2e/MWh) decreased by 13%, SO2 emissions by 45% and NOX emissions by 26%. We are on track to meet our emission reduction targets in line with the Paris Agreement. SBTi validated our near-term target in May 2022. The coal exit goes hand in hand with land recultivation and a strengthened commitment
to biodiversity. In 2021, our mines Severočeské doly completed landscape reclamation of more than 90 ha and started reclamation of almost 45 ha. This is three times more than 40.6 ha of the land we acquired for mining. Biological monitoring includes mapping specially protected wildlife and preventing the spread of invasive species. We also cooperate with universities, NGOs, and regulators to ensure a science-based and transparent approach to protecting biodiversity.
The Social pillar focuses on our stakeholders, most importantly on our customers, employees, and communities. We intend to be the most reliable supplier of energy commodities and services in the region, focusing on security and stability of supply. We will modernize and digitalize our distribution and sales. We want to remain the most attractive employer in Czechia. We promise our employees affected by the coal exit that we will not leave anyone behind. We are fully committed to a just transition, and we will offer them a transfer to another position, retraining, or compensation. We will continue our collaboration with schools and universities to attract best talent.
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CEZ a.s. published this content on 30 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 08:01:06 UTC.